Since December, almost $90 billion has been withdrawn from mutual and ETFs, exceeding outflows from all but one year at this point of time in data going back to 1984.
"Most people think, I want a manager who's doing credit research, adjusting for duration, looking for blowups," says BlackRock fixed income strategist Karen Schenone.
A class of investors that includes foreign central banks and mutual funds bought a record amount at the $34 billion debt sale.
Product providers have to be better at adapting to the market, says Ryan Sullivan, vice president of global ETF servicing at Brown Brothers Harriman.
The lawsuit highlights a friction that exists at financial-services firms that put employees into their own product.