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Rick Rieder's Fed Candidacy Clouds Outlook for His Hit ETF at BlackRock
['Katie Greifeld', 'Thu January At Pm Gmt', 'Min Read']
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(Bloomberg) — BlackRock Inc. (BLK) is facing a rare conundrum: its star manager may soon be poached to head the Federal Reserve, clouding the outlook for the $14 trillion exchange-traded fund industry’s fastest-growing active bond vehicle.
BlackRock executive Rick Rieder has emerged as a finalist on President Donald Trump’s shortlist for Fed chair in a decision that’s expected next week.
Its rapid growth has vaulted BINC up the active bond ETF leaderboard in record time, a feat fueled “partly due to Rieder’s name,” according to Bloomberg Intelligence.
“This is ‘key man risk,’” Sohn said on Bloomberg Television’s ETF IQ.
The fund’s AUM is also small within Rieder’s personal lineup: As the firm’s chief investment officer of global fixed income, he is responsible for roughly $2.7 trillion in assets.