Baltimore-based Legg Mason Inc. reported a marginal fall in assets under management (AUM), as of Aug 31, 2017, compared with the prior month. Preliminary month-end AUM came in at $752.4 billion, slightly down from July 2017.
August’s AUM displayed $0.5 billion fixed income outflows, alternative outflows of $0.2 billion, equity outflows of $0.8 billion and liquidity outflows of $1.6 billion. Notably, negative foreign exchange impact of $0.4 billion was also an unfavorable factor.
Legg Mason’s equity AUM at the end of August 2017 moved down around 1% from the prior-month figure to $198.5 billion. Alternative assets edged down moderately to $65.6 billion. However, fixed income AUM inched up slightly from the previous month to $413.7 billion.
Rise in fixed income, AUM, partially offset by lower Alternative and equity AUM, resulted in long-term AUM of $677.8 billion. The figure marked slight growth from the previous month. Additionally, liquid assets, which are convertible into cash, declined 2% to $74.6 billion.
Competitive Landscape
Among other investment managers, Franklin Resources Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $747.4 billion for August 2017. Results displayed around 1% fall from $752.7 billion recorded as of Jul 31, 2017. However, the figure inched up around 1% from the prior-year quarter.
Invesco Ltd. (IVZ - Free Report) announced an increase in its preliminary month-end AUM for August 2017. The company’s AUM came in at $906.7 billion, a rise of 3.4% from $876.9 billion in the prior month. The rise reflected the Source acquisition (closed on Aug 18), favorable market returns, an increase in Money Market AUM, net long-term inflows and inflows in PowerShares QQQs. However, FX lowered the August AUM by $2 billion. Notably, excluding the acquisition, AUM inched up 0.4% from July.
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. However, absence of consistent growth in equity markets and negative foreign exchange fluctuations remain headwinds.
Legg Mason currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 27.7% so far, this year, outperforming 18.2% growth recorded by the industry it belongs to.
Among others, Ameriprise Financial, Inc. (AMP - Free Report) with a Zacks Rank #2 (Buy) is worth considering, with the estimates witnessing upward revisions over the last 60 days.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Baltimore-based Legg Mason Inc. reported a marginal fall in assets under management (AUM), as of Aug 31, 2017, compared with the prior month. Preliminary month-end AUM came in at $752.4 billion, slightly down from July 2017.
August’s AUM displayed $0.5 billion fixed income outflows, alternative outflows of $0.2 billion, equity outflows of $0.8 billion and liquidity outflows of $1.6 billion. Notably, negative foreign exchange impact of $0.4 billion was also an unfavorable factor.
Legg Mason’s equity AUM at the end of August 2017 moved down around 1% from the prior-month figure to $198.5 billion. Alternative assets edged down moderately to $65.6 billion. However, fixed income AUM inched up slightly from the previous month to $413.7 billion.
Rise in fixed income, AUM, partially offset by lower Alternative and equity AUM, resulted in long-term AUM of $677.8 billion. The figure marked slight growth from the previous month. Additionally, liquid assets, which are convertible into cash, declined 2% to $74.6 billion.
Competitive Landscape
Among other investment managers, Franklin Resources Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $747.4 billion for August 2017. Results displayed around 1% fall from $752.7 billion recorded as of Jul 31, 2017. However, the figure inched up around 1% from the prior-year quarter.
Invesco Ltd. (IVZ - Free Report) announced an increase in its preliminary month-end AUM for August 2017. The company’s AUM came in at $906.7 billion, a rise of 3.4% from $876.9 billion in the prior month. The rise reflected the Source acquisition (closed on Aug 18), favorable market returns, an increase in Money Market AUM, net long-term inflows and inflows in PowerShares QQQs. However, FX lowered the August AUM by $2 billion. Notably, excluding the acquisition, AUM inched up 0.4% from July.
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. However, absence of consistent growth in equity markets and negative foreign exchange fluctuations remain headwinds.
Legg Mason currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 27.7% so far, this year, outperforming 18.2% growth recorded by the industry it belongs to.
Among others, Ameriprise Financial, Inc. (AMP - Free Report) with a Zacks Rank #2 (Buy) is worth considering, with the estimates witnessing upward revisions over the last 60 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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