Wamco Set to Lose Job Managing Money for Russell Bond Fund
- Russell Investments will wind down Wamco allocation to ‘zero’
- Wamco’s bets on lower-quality bonds hurt Russell fund in 2022
The Western Asset Management Company headquarters in Pasadena, California.
Photographer: Kyle Grillot/BloombergThis article is for subscribers only.
Western Asset Management Co., stung by an investor exodus after disclosing that star trader Ken Leech faces a federal investigation, is now losing its role as a subadviser to a Russell Investment Management fund.
The $2.2 billion Russell Strategic Bond Fund is winding down the portion of its assets allocated to Wamco to “zero,” according to a filing Friday. Russell expects to “formally terminate” Wamco’s role at the fund by year-end, pending board approval.