Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Legg Mason (LM) February AUM Declines On Equity Net Outflows

Published 03/12/2020, 09:22 PM
Updated 07/09/2023, 06:31 AM

Shares of Legg Mason Inc. (NYSE:LM) have declined about 3% following the announcement of its assets under management (AUM) for February 2020. The company reported 2.1% fall in AUM balance from the previous month. Preliminary month-end AUM came in at $789.4 billion, down from the January 2020 figure of $806 billion.

The company’s February AUM displayed $2.1-billion fixed income net inflows and alternative net inflows of $0.8 billion, partly offset by equity net outflows of $1.4 billion and liquidity net outflows of $1.6 billion. Negative foreign-exchange impact of $2 billion was an unfavorable factor.

Legg Mason’s equity AUM at the end of February declined 8.3% from the prior-month figure to $191.5 billion. Fixed income AUM was up slightly sequentially to $459.8 billion. Further, alternative assets increased marginally to $76 billion.

A considerable fall in fixed income AUM, partially offset by a slight rise in equity and alternative AUM resulted in long-term AUM of $727.3 billion. The figure marked a 2% decrease from the previous month. Also, liquid assets, which are convertible into cash, were down 2.4% to $62.1 billion.

Our Viewpoint

Legg Mason’s diverse product offerings and investment strategies will likely continue to attract investors, which along with improving AUM balance are likely to support revenue growth. Further, the company’s focus on expanding product offerings bodes well for the long term. However, continued equity AUM outflows may pose a threat to overall net inflows. Also, increased costs might dampen bottom-line growth.

Shares of the company have rallied 22.5% over the past six months against a 28.7% decline recorded by the industry.

Legg Mason currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Victory Capital Holdings (NASDAQ:VCTR) announced AUM by its subsidiaries of $142.4 billion for February 2020. Results display nearly a 5% fall from $150.3 billion recorded as of Jan 31, 2020.

Franklin Resources (NYSE:BEN) announced preliminary AUM by its subsidiaries of $656.5 billion for February 2020. Results displayed a 4.6% decrease from $688 billion recorded as of Jan 31, 2020. Net outflows and negative market returns led to the decline. Further, the reported figure dropped 8.1% year over year.

Invesco Ltd.’s (NYSE:IVZ) preliminary February-end AUM of $1,159.4 billion reflects a decline of 4.9% from the previous month. The decline was due to unfavorable market returns, net long-term outflows and net outflows in money market AUM, partly offset by net inflows in non-management fee earning AUM and reinvested distributions.

Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2020 today >>



Franklin Resources, Inc. (BEN): Free Stock Analysis Report

Legg Mason, Inc. (LM): Free Stock Analysis Report

Invesco Ltd. (IVZ): Free Stock Analysis Report

Victory Capital Holdings, Inc. (VCTR): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.