Brian Chappatta, Columnist

Franklin's Downgrade Is a Warning to All Bond Titans

The $738 billion asset manager is caught in a cycle of volatile performance and fund outflows.

June 6, 2018 at 11:30 AM UTC

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Don’t ask for whom the red light flashes.
Photographer: Tim Boyle/Getty Images

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Active mutual-fund managers have to be spooked by what’s happened to Franklin Resources Inc.

Less than four years ago, the San Mateo, California-based company, known for its Templeton suite of offerings, looked poised to exceed $1 trillion in assets under management, cementing itself in the pantheon of fund families. At the time, there seemed little reason to doubt that trajectory. After all, Franklin is a publicly traded firm with great brand recognition, thanks to its affiliation with one of America’s iconic founding fathers.