Ken Leech’s Free Rein at Wamco Backfired for Franklin Resources (2)

No one was more acutely aware of the perils of celebrity fund managers than Jenny Johnson, the chief executive officer of Franklin Resources Inc.

“Clients get nervous about star fund managers,” she said in 2020, shortly after the acquisition of Legg Mason Inc. pushed Franklin’s assets to $1.4 trillion, making it one of the world’s biggest fund companies. The deal brought a slew of new managers under Franklin’s umbrella, the largest among them Western Asset Management and veteran Chief Investment Officer Ken Leech — a star in his own right.

Four years later, Franklin is grappling with the abrupt dethroning of Wamco’s celebrated bond trader, following ...