Ohio Police & Fire Pension Fund, Columbus, terminated Western Asset Management Co. from a $180 million short-term cash portfolio.
The $18.9 billion pension fund’s board approved the termination at its Jan. 29 meeting, spokesman David Graham said.
The board cited “organizational developments” as the reason for the termination of WAMCO, which has been on the pension fund’s watchlist since September. Franklin Templeton, Western Asset Management’s parent, disclosed in August that the SEC had issued a Wells notice to co-CIO Ken Leech, identifying him as a target of an investigation focusing on “past trade allocations involving Treasury derivatives." Leech has since resigned and been charged by the agency with securities fraud.
Graham said assets from the termination will be reallocated to existing managers. The pension fund originally hired WAMCO to manage the portfolio in April 2018.
As of Sept. 30, the pension fund’s actual allocation to fixed income was 22.2%; its long-term target is 25%.
