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Legg Mason (LM) AUM Improves in July, Inflows Recorded
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Baltimore-based Legg Mason Inc. reported a rise in its assets under management (AUM) as of Jul 31, 2016, as compared with the prior month. Preliminary month-end AUM came in at $756.6 billion, up 2% from Jun 2016.
July’s AUM displayed fixed income inflows of $1.4 billion, $0.8 billion equity outflows, alternative outflows of $1.1 billion and liquidity inflows of $2.0 billion. Positive foreign exchange impact of about $0.8 billion was a favorable factor.
Legg Mason’s equity AUM at the end of July increased 4% above the prior month figure to $167.6 billion. Moreover, fixed income AUM increased 1.8% from the previous month to $394.1 billion. Alternative assets including AUM managed by Clarion Partners, EnTrustPermal, RARE Infrastructure and Permal Capital Management declined around 1% to $71.9 billion.
The rise in equity and fixed income, partially offset by lower Alternative AUM resulted in long-term AUM of $633.6 billion. The figure marked a 2% increase from the prior month. Moreover, liquid assets, which are convertible into cash, inched up around 1.7% to $123 billion.
Competitive Landscape
Among other investment managers, Invesco Ltd. (IVZ - Free Report) announced its preliminary month-end AUM for Jul 2016. The company’s AUM came in at $811.8 billion, a rise of 4.1% from $779.6 billion recorded in the prior month. However, Franklin Resources Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $739.9 billion for Jul 2016.
The results exhibited around 1.1% rise from $732.1 billion as of Jun 30, 2016. Yet, the figure decreased 13.4% from $854.7 billion as of Jul 31, 2015.
Our Viewpoint
Though foreign exchange fluctuations and absence of consistent growth in equity markets remain headwinds, we believe that Legg Mason has the potential to outperform its peers in the long run, given its diversified product mix and leverage to the changing market demography.
Currently, Legg Mason carries a Zacks Rank #5 (Strong Sell). A better-ranked company in the finance industry is Federated Investors, Inc. which carries a Zacks Rank #2 (Buy).
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Legg Mason (LM) AUM Improves in July, Inflows Recorded
Baltimore-based Legg Mason Inc. reported a rise in its assets under management (AUM) as of Jul 31, 2016, as compared with the prior month. Preliminary month-end AUM came in at $756.6 billion, up 2% from Jun 2016.
July’s AUM displayed fixed income inflows of $1.4 billion, $0.8 billion equity outflows, alternative outflows of $1.1 billion and liquidity inflows of $2.0 billion. Positive foreign exchange impact of about $0.8 billion was a favorable factor.
Legg Mason’s equity AUM at the end of July increased 4% above the prior month figure to $167.6 billion. Moreover, fixed income AUM increased 1.8% from the previous month to $394.1 billion. Alternative assets including AUM managed by Clarion Partners, EnTrustPermal, RARE Infrastructure and Permal Capital Management declined around 1% to $71.9 billion.
The rise in equity and fixed income, partially offset by lower Alternative AUM resulted in long-term AUM of $633.6 billion. The figure marked a 2% increase from the prior month. Moreover, liquid assets, which are convertible into cash, inched up around 1.7% to $123 billion.
Competitive Landscape
Among other investment managers, Invesco Ltd. (IVZ - Free Report) announced its preliminary month-end AUM for Jul 2016. The company’s AUM came in at $811.8 billion, a rise of 4.1% from $779.6 billion recorded in the prior month. However, Franklin Resources Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $739.9 billion for Jul 2016.
The results exhibited around 1.1% rise from $732.1 billion as of Jun 30, 2016. Yet, the figure decreased 13.4% from $854.7 billion as of Jul 31, 2015.
Our Viewpoint
Though foreign exchange fluctuations and absence of consistent growth in equity markets remain headwinds, we believe that Legg Mason has the potential to outperform its peers in the long run, given its diversified product mix and leverage to the changing market demography.
Currently, Legg Mason carries a Zacks Rank #5 (Strong Sell). A better-ranked company in the finance industry is Federated Investors, Inc. which carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>