(Bloomberg) — As Wall Street starts to tally the market damage triggered by Russia’s invasion of Ukraine, a big bond fund run by Franklin Resources Inc. is emerging as an early loser.
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The Western Asset Core Plus Bond Fund, with $37 billion of U.S. mutual fund assets, declined more than 8% this year and about 3% since the conflict began. The losses, spurred by investments in Russian securities, have given the fund an unwanted distinction: It’s one of the worst-performing funds in the category, according to Morningstar Inc.
Heading into this year, the U.S. fund had $484 million in Russia bonds, representing 1.2% of its total assets. Those positions were marked down by more than half to $194 million as of Feb. 28, according to the firm. The positions may have declined further after additional sanctions and restrictions placed on Russia.
The fund has trailed its…
