On August 21, 2024, Franklin Resources filed a current report with the U.S. Securities and Exchange Commission (“SEC”). In this current report, the company announced that it was naming a sole Chief Investment Officer at Western Asset Management (a company subsidiary) to replace co-Chief Investment Officer Ken Leech, who had been on a leave of absence, effective immediately. The current report also stated that Ken Leech had “received a Wells Notice from the Staff of the U.S. Securities and Exchange Commission,” and that “[i]n light of Mr. Leech’s leave of absence, the Company has determined that closing its Macro Opportunities strategy . . . is in clients’ best interests.”
On this news, Franklin Resources’ stock fell $2.84 per share, or 12.5%, to close at $19.78 per share on August 21, 2024.
