Legg Mason's (LM) AUM Up In January, Net Outflows Recorded
Zacks Investment Research | Feb 12, 2018 09:24PM ET
Legg Mason Inc. (NYSE:LM) , headquartered at Baltimore, reported 1.6% rise in assets under management (AUM), as of Jan 31, 2018, compared with the prior month. Preliminary month-end AUM came in at $779.6 billion, up 1.6% from December 2017.
January’s AUM displayed $2.1-billion fixed income inflows, mostly offset by net equity outflows of $1.4 billion, liquidity outflows of $1.6 billion and $0.1 billion of alternative outflows. Notably, positive foreign exchange impact of $4.1 billion remained a favorable factor.
Legg Mason’s equity AUM at the end of January increased around 4.4% from the prior-month figure to $216.7 billion. Fixed income AUM inched up 1.2% from the previous month to $425 billion. However, alternative assets edged down moderately to $66 billion.
Rise in fixed income and equity AUM, partially offset by lower Alternative AUM, resulted in long-term AUM of $707.7 billion. The figure marked around 2% growth from the previous month. However, liquid assets, which are convertible into cash, moved down 1.8% to $71.9 billion.
Competitive Landscape
Franklin (NYSE:BEN) has announced preliminary AUM by its subsidiaries of $770.8 billion for January 2018. Results display 2.3% rise from $753.8 billion recorded as of Dec 31, 2017. Nevertheless, the figure ascended 5.8% year over year.
T. Rowe Price Group, Inc. (NASDAQ:TROW) reported preliminary AUM of $1.05 trillion for January. Results reflect 5.7% rise from $991 billion as of Dec 31, 2017. Client transfers from mutual funds to other portfolios totaled $3.7 billion for the month.
Among others, Invesco Ltd. (NYSE:IVZ) is expected to announce preliminary month-end AUM for January 2018, later this week.
Our Viewpoint
Legg Mason has the potential to outperform its peers over the long run, backed by a diversified product mix and leverage to the changing market demography. Nonetheless, absence of continued growth in equity markets and foreign-exchange fluctuations remain headwinds.
Legg Mason currently carries a Zacks Rank #2 (Buy). You can see 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.