Legg Mason's (LM) AUM Climbs In April, Outflows Recorded
Zacks Investment Research | May 10, 2017 10:10PM ET
Baltimore-based Legg Mason Inc. (NYSE:LM) reported a rise in its assets under management (AUM) as of Apr 30, 2017, compared with the prior month. Preliminary month-end AUM came in at $731 billion, slightly up from Mar 2017.
April’s AUM displayed fixed income outflows of $1.0 billion, $0.6 billion equity outflows, alternative inflows of $0.1 billion and liquidity outflows of $0.2 billion. Moreover, negative foreign exchange impact was $0.1 billion.
Legg Mason’s equity AUM at the end of Apr 2017 increased slightly from the prior-month figure to $180.6 billion. Moreover, fixed income AUM inched up modestly from the previous month to $396.2 billion. Alternative assets increased slightly to $68.0 billion.
Rise in equity, fixed income and Alternative AUM resulted in long-term AUM of $644.8 billion. The figure marked slight increase from the prior month. However, liquid assets, which are convertible into cash, edged down modestly to $86.2 billion.
Competitive Landscape
Among other investment managers, Franklin Resources Inc. (NYSE:BEN) announced preliminary AUM by its subsidiaries of $741.0 billion for Apr 2017. Results displayed marginal rise from $740.0 billion as of Mar 31, 2017. However, the figure edged down around 1% from the prior-year quarter.
Invesco Ltd. (NYSE:IVZ) announced an increase in preliminary month-end AUM for Apr 2017. The company’s AUM came in at $841.4 billion, up marginally from $834.8 billion recorded in the prior month. The rise was supported by favorable market returns, foreign exchange, and inflows into PowerShares QQQs, partially offset by lower Money Market AUM and modest net long-term outflows. Further, FX increased April AUM by $3.2 billion.
Our Viewpoint
Though absence of consistent growth in equity markets remain headwinds, we believe that Legg Mason has the potential to outperform its peers over the long run, backed by its diversified product mix, positive foreign exchange fluctuations and leverage to the changing market demography.
Currently, Legg Mason carries a Zacks Rank #3 (Hold). The company’s stock gained 18.9% over the last six months, outperforming 7.6% growth recorded by the Zacks categorized Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.