Western Asset Management Appoints Chief Investment Officer Amid SEC Probe

Western Asset Management, a global fixed-income investment firm, has named Michael Buchanan as its Chief Investment Officer. Former co-Chief Investment Officer Ken Leech is now on leave amid a regulatory investigation. The leadership change came as the company faced scrutiny over past trade allocations.

Buchanan, previously co-chief investment officer with Leech, has assumed leadership of all global investment management responsibilities. This transition follows the company’s succession plan and Leech’s receipt of a Wells Notice from the Securities and Exchange Commission.

“We are confident Mike’s leadership, extensive experience, and deep commitment to Western Asset will ensure not only a seamless transition, but also that our clients and our team are in good hands,” said Jim Hirschmann, the company’s president and CEO.

Western Asset, managing $381.1 billion in client assets, is cooperating with government investigations into past trade allocations involving treasury derivatives in select accounts. This was disclosed in Franklin Resources’ 10-Q filing in July, which also revealed an internal investigation by the company.

Buchanan brings nearly two decades of experience at Western Asset and over 30 years in the industry. He has led the company’s Global and US Strategy Committees and overseen global macro and all sector teams.

“I look forward to continuing to lead our dedicated and talented team in delivering long-term investment growth for our valued clients,” Buchanan said. He added that Western Asset will continue to capitalize on dynamic market conditions to maintain its industry-leading position.

In response to Leech’s leave, Western Asset is closing its Macro Opportunities strategy, which managed approximately $2.0 billion in assets as of July 31, 2024. The company stated this action was in clients’ best interests.