May 29, 2015 – How well can active managers adapt to a market favoring passive funds and cheap ETFs? One firm's response is to offer a passive ETF of its own with the goal of demonstrating it can be good at passive and active strategies.
The Pimco Total Return Fund suffered an estimated $27.5 billion of withdrawals in its first full month after the Sept. 26 departure of Bill Gross, its worst month ever for redemptions.
BlackRock, the worlds largest provider of ETFs, said the products acted as shock absorbers after Bill Grosss unexpected exit last month from Pimco.
Pimco seeking to stem redemptions after its co-founder Bill Gross left unexpectedly, was dropped as manager of a $6.16 billion strategy offered by a unit of Prudential Financial.