Investor Exodus Shrinks Wamco Key Bond Fund to Under $15 Billion
- Investors yanked $1.4 billion from fund on Monday: Morningstar
- Outflows come after Leech takes leave amid investigation
The Western Asset Management Company headquarters in Pasadena, California.
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
A wave of investor redemptions slashed the size of Western Asset Management Co.’s flagship core plus bond fund below $15 billion, a decline of more than one-third so far this year, as clients pull back after a federal investigation of the firm’s veteran trader and co-chief investment officer Ken Leech.
Investors have yanked about $4.8 billion from the Western Asset Core Plus Bond Fund over the past three weeks, according to Morningstar Direct. That leaves $14.3 billion in the mutual bond fund as of Monday, a 36% decline so far this year.