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Legg Mason's (LM) February AUM Increases on Net Inflows
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Legg Mason Inc. reported 2.2% rise in assets under management (AUM) as of Feb 28, 2019, from the previous month. Preliminary month-end AUM came in at $762.8 billion, up from the January 2019 figure of $746.7 billion.
February AUM included $1.2 billion of long-term net inflows and liquidity net inflows of $9.6 billion. However, unfavorable foreign exchange impact of $1.5 billion acted as a headwind.
Legg Mason’s equity AUM at the end of February grew 3% from the prior month to $202.2 billion. Further, alternative assets rose nearly 1% to $66.9 billion. On the other hand, fixed income AUM was relatively stable at $414.1 billion.
Rise in alternatives and equity AUM resulted in long-term AUM of $683.2 billion. The figure marks almost 1% increase from the previous month. Moreover, liquid assets, which are convertible to cash, improved 14% to $79.6 billion.
Our Take
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, foreign-exchange fluctuations and equity outflows remain major headwinds.
Shares of the company have rallied 10.7% over the past three months compared with the 12.3% rise for the industry.
Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $714.2 billion for February. Results reflect a rise of5.3% from $678.3 billion recorded as of Jan 31. The increase was primarily driven by to market appreciation and the acquisition of Benefit Street Partners L.L.C.
Cohen & Steers (CNS - Free Report) reported preliminary AUM of $60.8 billion as of Feb 28, 2019, up 1.3% from the prior month. Market appreciation of $624 million and net inflows of $350 million supported AUM growth.
Invesco’s (IVZ - Free Report) preliminary month-end AUM was $945.7 billion as of Feb 28, 2019, which increased 1.6% from the prior month. Favorable market returns, foreign exchange and higher money market AUM were the primary reasons behind the rise.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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Legg Mason's (LM) February AUM Increases on Net Inflows
Legg Mason Inc. reported 2.2% rise in assets under management (AUM) as of Feb 28, 2019, from the previous month. Preliminary month-end AUM came in at $762.8 billion, up from the January 2019 figure of $746.7 billion.
February AUM included $1.2 billion of long-term net inflows and liquidity net inflows of $9.6 billion. However, unfavorable foreign exchange impact of $1.5 billion acted as a headwind.
Legg Mason’s equity AUM at the end of February grew 3% from the prior month to $202.2 billion. Further, alternative assets rose nearly 1% to $66.9 billion. On the other hand, fixed income AUM was relatively stable at $414.1 billion.
Rise in alternatives and equity AUM resulted in long-term AUM of $683.2 billion. The figure marks almost 1% increase from the previous month. Moreover, liquid assets, which are convertible to cash, improved 14% to $79.6 billion.
Our Take
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, foreign-exchange fluctuations and equity outflows remain major headwinds.
Shares of the company have rallied 10.7% over the past three months compared with the 12.3% rise for 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.
Performance of Other Asset Managers
Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $714.2 billion for February. Results reflect a rise of5.3% from $678.3 billion recorded as of Jan 31. The increase was primarily driven by to market appreciation and the acquisition of Benefit Street Partners L.L.C.
Cohen & Steers (CNS - Free Report) reported preliminary AUM of $60.8 billion as of Feb 28, 2019, up 1.3% from the prior month. Market appreciation of $624 million and net inflows of $350 million supported AUM growth.
Invesco’s (IVZ - Free Report) preliminary month-end AUM was $945.7 billion as of Feb 28, 2019, which increased 1.6% from the prior month. Favorable market returns, foreign exchange and higher money market AUM were the primary reasons behind the rise.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
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