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Legg Mason AUM Rises in October, Fixed Income Inflows Recorded
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Legg Mason Inc. reported marginal growth in assets under management (AUM) as of Oct 31, 2019, from the previous month. Preliminary month-end AUM came in at $791 billion, up 1.2% from the September 2019 figure of $781.8 billion.
The company’s October AUM displayed $1.8-billion fixed income inflows and alternative inflows of $0.3 billion, partly offset by liquidity and equity net outflows of $1.4 billion and $0.1 billion, respectively. Notably, alternative AUM recorded $0.2 billion of realizations. Further, positive foreign-exchange impact of $2.1 billion was a favorable factor.
Legg Mason’s equity AUM at the end of October advanced 1.9% from the prior-month figure to $207.1 billion. Fixed income AUM was up 1.5% sequentially to $449.3 billion. In addition, alternative assets increased marginally to $72.7 billion.
Rise in fixed income, equity and alternative AUM resulted in long-term AUM of $729.1 billion. The figure marks a 1.5% increase from the previous month. However, liquid assets, which are convertible into cash, were down 2.1% to $61.9 billion.
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.
Shares of the company have gained around 10.1% over the last three months compared with 11.6% growth recorded by the industry.
Among other investment managers, Invesco’s (IVZ - Free Report) preliminary month-end AUM was $1,195.2 billion, up 0.9% from the prior month. This upswing stemmed from favorable market returns, and reinvested distributions. Also, favorable foreign-exchange movement boosted the month’s AUM by $5 billion. These were partly offset by outflows in long-term AUM, money market, and non-management fee earning AUM.
Franklin Resources (BEN - Free Report) has also announced preliminary AUM by its subsidiaries of $693.1 billion for October. Results displayed marginal increase from the $692.6 billion recorded as of Sep 30, 2019. Slight net outflows were offset by net market gains. Furthermore, the reported figure inched up 1.5% year on year.
Cohen & Steers (CNS - Free Report) reported preliminary AUM of $72 billion as of Oct 31, 2019, up 1.6% from the prior-month level of $70.9 billion. Market appreciation of $967 million and net inflows of $333 million were partly offset by distributions of $186 million.
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Legg Mason AUM Rises in October, Fixed Income Inflows Recorded
Legg Mason Inc. reported marginal growth in assets under management (AUM) as of Oct 31, 2019, from the previous month. Preliminary month-end AUM came in at $791 billion, up 1.2% from the September 2019 figure of $781.8 billion.
The company’s October AUM displayed $1.8-billion fixed income inflows and alternative inflows of $0.3 billion, partly offset by liquidity and equity net outflows of $1.4 billion and $0.1 billion, respectively. Notably, alternative AUM recorded $0.2 billion of realizations. Further, positive foreign-exchange impact of $2.1 billion was a favorable factor.
Legg Mason’s equity AUM at the end of October advanced 1.9% from the prior-month figure to $207.1 billion. Fixed income AUM was up 1.5% sequentially to $449.3 billion. In addition, alternative assets increased marginally to $72.7 billion.
Rise in fixed income, equity and alternative AUM resulted in long-term AUM of $729.1 billion. The figure marks a 1.5% increase from the previous month. However, liquid assets, which are convertible into cash, were down 2.1% to $61.9 billion.
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.
Shares of the company have gained around 10.1% over the last three months compared with 11.6% growth recorded by the industry.
Legg Mason currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
Among other investment managers, Invesco’s (IVZ - Free Report) preliminary month-end AUM was $1,195.2 billion, up 0.9% from the prior month. This upswing stemmed from favorable market returns, and reinvested distributions. Also, favorable foreign-exchange movement boosted the month’s AUM by $5 billion. These were partly offset by outflows in long-term AUM, money market, and non-management fee earning AUM.
Franklin Resources (BEN - Free Report) has also announced preliminary AUM by its subsidiaries of $693.1 billion for October. Results displayed marginal increase from the $692.6 billion recorded as of Sep 30, 2019. Slight net outflows were offset by net market gains. Furthermore, the reported figure inched up 1.5% year on year.
Cohen & Steers (CNS - Free Report) reported preliminary AUM of $72 billion as of Oct 31, 2019, up 1.6% from the prior-month level of $70.9 billion. Market appreciation of $967 million and net inflows of $333 million were partly offset by distributions of $186 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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