Franklin Resources, Inc. (NYSE: BEN) shares plunged 12.6% and hit a 52-week low of $19.78 in the last trading session. The decline came as Western Asset Management, a unit of Franklin Resources, announced the replacement of its top investment executive amid federal investigations into his conduct.
The company replaced Ken Leech, who was serving as the co-chief investment officer of its Western Asset Management unit. The move came as the CIO had taken a leave of absence after getting a Wells Notice from the Securities and Exchange Commission (SEC).
In a SEC filing, Western Asset Management stated that Leech had left the firm. Therefore, the company has decided to close its Macro Opportunities fund to "best serve clients" which managed around $2 billion in assets as of Jul 31. Also, the company mentioned, with immediate effect, Michael Buchanan, who also shared the role with Ken Leech has been named the CIO.
In a July 2024 regulatory filing, Franklin ...
