Western Asset Management (WAM), a subsidiary of Franklin Resources, Inc., has experienced a $55 billion customer exodus. This significant withdrawal of assets is directly linked to the ongoing Justice Department investigation into trades made by WAMco’s former star fund manager, Ken Leech.
The quantified customer departures underscore the severe financial and reputational damage inflicted by the federal probe. Such a substantial loss of assets under management will have a material impact on Franklin Templeton's fee income and overall financial performance.
The continued client withdrawals highlight the challenges WAM faces in retaining investor confidence amidst the legal uncertainties. Franklin Resources is actively working to address these issues and stabilize its fixed income specialist unit.
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