Ken Leech, a bond manager, faces criminal charges for allegedly engaging in a "cherry-picking" scheme that funneled gains to select clients at Western Asset Management Co. The U.S. Department of Justice claims he aimed to salvage his struggling Macro Opportunities strategy while benefiting two longtime clients.
A controversial decision by a Swiss regulator left investors in a risky pool of Credit Suisse bonds devastated, declaring the notes worthless following the bank's emergency takeover by UBS Group AG. This move has sparked significant outrage within the bond market.
A controversial decision by a Swiss regulator last year left investors in a risky pool of Credit Suisse bonds devastated, declaring the notes worthless following the bank's emergency takeover by UBS Group AG. This move ignited outrage across the bond market and raised concerns about the implications for investors.
Shares of Franklin Resources Inc. dropped by as much as 7.7% following news of a Commodity Futures Trading Commission investigation into Western Asset Management Co. The firm has experienced $53 billion in outflows since it was revealed that Co-Chief Investment Officer Ken Leech is under scrutiny for potentially favoring certain clients with winning trades.
Western Asset Management Co.'s flagship core plus bond mutual fund has seen its assets plummet below $10 billion due to a wave of investor redemptions. The fund's size dropped from $22.3 billion at the start of 2024 to $9.96 billion as of November 1, following the announcement of Co-Chief Investment Officer Ken Leech's leave amid a federal investigation. For more details, visit [Bloomberg](https://www.bloomberg.com) and [SEC](https://www.sec.gov).
Franklin Templeton CEO Jenny Johnson emphasized the firm's commitment to clients amid a significant SEC probe and record financial outflows, particularly from its fixed-income unit. Following the leave of absence of a key investment officer, the firm experienced nearly $24 billion in outflows in one month, but Johnson reassured investors that other strategies remain strong and focused on client needs. She expressed confidence in restoring investor trust and highlighted the importance of doing right by clients for long-term success.
Franklin Templeton faces unprecedented outflows, losing over $37 billion from its troubled Western Asset Management unit amid investigations into alleged trading misconduct by co-CIO Ken Leech. The firm, once poised to benefit from falling interest rates, now struggles with reputational damage and poor performance, leading to significant client withdrawals and a projected $31 billion in net outflows for the quarter. As competitors gain traction in fixed income, Western's future remains uncertain, with many investors seeking new management options.
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