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Legg Mason's (LM) AUM Up 0.8% in March on Solid Inflows
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Legg Mason Inc. , a Baltimore-based global asset management firm, reported a rise in its assets under management (AUM) as of Mar 31, 2017 compared with the prior month. Preliminary month-end AUM came in at $728.4 billion, up 0.8% from Feb 2017.
March AUM displayed fixed income inflows of $1.1 billion, equity inflows of $3.3 billion and liquidity inflows of $2.2 billion. Alternative outflows totaled $1.8 billion. However, there was a positive foreign exchange (FX) impact of about $0.3 billion.
Legg Mason’s equity AUM at the end of the month increased around 2.3% from the prior-month figure to $179.8 billion. Moreover, fixed income AUM inched up around 0.6% from the previous month to $394.3 billion. However, alternative assets, including AUM managed by Clarion Partners, EnTrustPermal and RARE Infrastructure, reduced slightly to $67.9 billion. The primary reason for this decline was the sale of Glouston Capital.
The rise in equity and fixed income, partially offset by the decline in alternative AUM, resulted in long-term AUM of $642 billion. The figure marked a 0.5% increase from the prior month. In addition, liquid assets, which are convertible into cash, increased around 2.7% to $86.4 billion.
Performance of Other Investment Managers
Among other investment managers, Franklin Resources, Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $740 billion for Mar 2017. The results displayed around 0.2% marginal rise from $738.2 billion as of Feb 28. Further, the figure increased 2% from the prior year.
Invesco Ltd. (IVZ - Free Report) also announced an increase in its preliminary month-end AUM for Mar 2017. The company’s AUM totaled $834.8 billion, down a marginal 0.2% from $836.8 billion recorded in the prior month. This was due to a decline in money market AUM and net long-term outflows. However, these were partly offset by favorable market returns and inflows in PowerShares QQQs. Moreover, there was also a favorable FX impact of $0.6 billion.
Our Viewpoint
We believe that Legg Mason has the potential to outperform its peers over the long run, given 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 14.6% over the last three months, outperforming 3% growth of the Zacks categorized Financial - Investment Management industry.
The company’s shares gained over 13.89% in the last six months. The Zacks Consensus Estimate for the stock climbed 6.9% to $1.08 over the last 60 days for 2017.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Legg Mason's (LM) AUM Up 0.8% in March on Solid Inflows
Legg Mason Inc. , a Baltimore-based global asset management firm, reported a rise in its assets under management (AUM) as of Mar 31, 2017 compared with the prior month. Preliminary month-end AUM came in at $728.4 billion, up 0.8% from Feb 2017.
March AUM displayed fixed income inflows of $1.1 billion, equity inflows of $3.3 billion and liquidity inflows of $2.2 billion. Alternative outflows totaled $1.8 billion. However, there was a positive foreign exchange (FX) impact of about $0.3 billion.
Legg Mason’s equity AUM at the end of the month increased around 2.3% from the prior-month figure to $179.8 billion. Moreover, fixed income AUM inched up around 0.6% from the previous month to $394.3 billion. However, alternative assets, including AUM managed by Clarion Partners, EnTrustPermal and RARE Infrastructure, reduced slightly to $67.9 billion. The primary reason for this decline was the sale of Glouston Capital.
The rise in equity and fixed income, partially offset by the decline in alternative AUM, resulted in long-term AUM of $642 billion. The figure marked a 0.5% increase from the prior month. In addition, liquid assets, which are convertible into cash, increased around 2.7% to $86.4 billion.
Performance of Other Investment Managers
Among other investment managers, Franklin Resources, Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $740 billion for Mar 2017. The results displayed around 0.2% marginal rise from $738.2 billion as of Feb 28. Further, the figure increased 2% from the prior year.
Invesco Ltd. (IVZ - Free Report) also announced an increase in its preliminary month-end AUM for Mar 2017. The company’s AUM totaled $834.8 billion, down a marginal 0.2% from $836.8 billion recorded in the prior month. This was due to a decline in money market AUM and net long-term outflows. However, these were partly offset by favorable market returns and inflows in PowerShares QQQs. Moreover, there was also a favorable FX impact of $0.6 billion.
Our Viewpoint
We believe that Legg Mason has the potential to outperform its peers over the long run, given 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 14.6% over the last three months, outperforming 3% growth of the Zacks categorized Financial - Investment Management industry.
A better-ranked finance company is Hargreaves Lansdown plc , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares gained over 13.89% in the last six months. The Zacks Consensus Estimate for the stock climbed 6.9% to $1.08 over the last 60 days for 2017.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 ""Strong Buys"" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 ""Strong Sells."" Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>