NEW YORK, Aug 21 (Reuters) - Franklin Templeton

announced on Wednesday that it will shutter a $2 billion fund

and that Michael Buchanan will become sole chief investment

officer of wholly owned subsidiary Western Asset Management.

The appointment comes after Ken Leech, Western Asset's

co-chief investment officer alongside Buchanan, took a leave of

absence after receiving a so-called Wells notice from the U.S.

Securities and Exchange Commission, according to a statement

from Franklin Templeton.

A Wells notice is a formal notification from the SEC that it

has concluded an investigation with charges likely to follow.

Franklin Templeton said it will also shutter the $2 billion

Macro Opportunities strategy fund after Leech stepped down.

"The company launched an internal investigation into certain

past trade allocations involving Treasury derivatives in select

Western Asset-managed accounts. The company is also cooperating

with parallel government investigations," according to the

statement.

Franklin Templeton's shares traded down nearly 12% at

$19.93, on track for the biggest daily percent decline since

October 2020.