We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Legg Mason (LM) Records Outflow in December Yet AUM Rises
Read MoreHide Full Article
Legg Mason Inc. , headquartered at Baltimore, reported an 8% rise in assets under management (AUM), as of Dec 31, 2017, compared with the prior-year figure. Preliminary month-end AUM was $767.2 billion, up 8% from December 2016.
December’s AUM displayed $1.7-billion fixed income inflows and $0.2-billion of alternative inflows, which were more than offset by equity outflows of $1.9 billion and $2.7 billion of liquidity outflows. Positive foreign exchange impact of $0.8 billion also remained a favorable factor.
Legg Mason’s equity AUM at the end of December 2017 rose around 22.8% from the prior-year figure to $207.6 billion. Fixed income AUM moved up 10.2% from the previous year to $420.1 billion. However, alternative assets declined 7.3% to $66.3 billion.
Rise in fixed income and equity AUM, partially offset by lower Alternative AUM, resulted in long-term AUM of $694 billion. The figure marked 11.6% growth from the previous year. However, liquid assets, which are convertible into cash, moved down 17.6% to $73.2 billion.
Competitive Landscape
Among other investment managers, Franklin Resources Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $753.8 billion for December 2017. Results display a marginal rise from $753.2 billion recorded as of Nov 30, 2017. However, the figure moved up 4.7% from the prior year.
Invesco Ltd. (IVZ - Free Report) reported preliminary month-end AUM of $937.6 billion for December 2017. The figure remains unchanged from the prior-month number. The AUM benefited from net long-term inflows. Also, FX increased December AUM by $1.1 billion. However, these were offset by a decline in money market AUM, PowerShares QQQs outflows and unfavorable market returns.
T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary AUM of $991 billion for December 2017. The numbers remained unchanged from the prior-month figure. Client transfers from mutual funds to other portfolios of $1.7 billion were recorded in December 2017.
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, the absence of continued growth in equity markets and foreign exchange fluctuations remain headwinds.
Shares of the company rallied around 40.4% in 2017, outperforming 31.2% growth recorded by the industry.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Image: Bigstock
Legg Mason (LM) Records Outflow in December Yet AUM Rises
Legg Mason Inc. , headquartered at Baltimore, reported an 8% rise in assets under management (AUM), as of Dec 31, 2017, compared with the prior-year figure. Preliminary month-end AUM was $767.2 billion, up 8% from December 2016.
December’s AUM displayed $1.7-billion fixed income inflows and $0.2-billion of alternative inflows, which were more than offset by equity outflows of $1.9 billion and $2.7 billion of liquidity outflows. Positive foreign exchange impact of $0.8 billion also remained a favorable factor.
Legg Mason’s equity AUM at the end of December 2017 rose around 22.8% from the prior-year figure to $207.6 billion. Fixed income AUM moved up 10.2% from the previous year to $420.1 billion. However, alternative assets declined 7.3% to $66.3 billion.
Rise in fixed income and equity AUM, partially offset by lower Alternative AUM, resulted in long-term AUM of $694 billion. The figure marked 11.6% growth from the previous year. However, liquid assets, which are convertible into cash, moved down 17.6% to $73.2 billion.
Competitive Landscape
Among other investment managers, Franklin Resources Inc. (BEN - Free Report) announced preliminary AUM by its subsidiaries of $753.8 billion for December 2017. Results display a marginal rise from $753.2 billion recorded as of Nov 30, 2017. However, the figure moved up 4.7% from the prior year.
Invesco Ltd. (IVZ - Free Report) reported preliminary month-end AUM of $937.6 billion for December 2017. The figure remains unchanged from the prior-month number. The AUM benefited from net long-term inflows. Also, FX increased December AUM by $1.1 billion. However, these were offset by a decline in money market AUM, PowerShares QQQs outflows and unfavorable market returns.
T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary AUM of $991 billion for December 2017. The numbers remained unchanged from the prior-month figure. Client transfers from mutual funds to other portfolios of $1.7 billion were recorded in December 2017.
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, the absence of continued growth in equity markets and foreign exchange fluctuations remain headwinds.
Legg Mason currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of the company rallied around 40.4% in 2017, outperforming 31.2% growth recorded by the industry.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>