WSJ discusses Franklin’s Wamco losing 15% of client assets

Franklin Resources (BEN)’ Western Asset Management has lot $55B in client outflows since mid-August, representing about 15% of its assets, Jack Pitcher and Justin Baer of Wall Street Journal report. The exodus was set in motion when Franklin announced that the Justice Department and Securities and Exchange Commission were investigating trades by Wamco’s star fund manager, Ken Leech, the Journal says. The paper adds the revelations “have left rivals and clients stunned” and called into question whether Wamco can survive as a stand-alone manager.