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A $37 Billion U.S. Bond Fund Emerges as a Big Loser From Russia

  • Franklin’s Western Asset Core Plus fund slides 8% in 2022
  • Losses were spurred by investments in Russian securities

As Wall Street starts to tally the market damage triggered by Russia’s invasion of Ukraine, a big bond fund run by Franklin Resources Inc. is emerging as an early loser.

The Western Asset Core Plus Bond Fund, with $37 billion of U.S. mutual fund assets, declined more than 8% this year and about 3% since the conflict began. The losses, spurred by investments in Russian securities, have given the fund an unwanted distinction: It’s one of the worst-performing funds in the category, according to Morningstar Inc.