Legg Mason Inc.
) reported a dip in its assets under management (AUM) as of Apr
30, 2013, compared with the prior month, reflecting the liquidity
redemption from a sovereign client. Preliminary month-end AUM
came in at $655.4 billion, down 1.4% from March-end. Equity and
Fixed Income AUM were up in the month under review, though
liquidity AUM declined.
Legg Mason's equity AUM as of April-end rose 0.6% from the prior
month to $162.8 billion, while fixed income AUM increased 1.7%
compared with the prior month to $371.3 billion.
The rise in equity and fixed income AUM resulted in long-term AUM
of $534.1 billion, reflecting a 1.4% increase against the prior
month. Liquid assets, which are convertible into cash, decreased
about 11.9% to $121.3 billion.
Among other investment managers,
) announced a 2.6% rise in its preliminary month-end AUM for Apr
2013, which stood at $748.5 billion. Another firm -
Franklin Resources Inc.
) - declared preliminary AUM of $847.5 billion by its
subsidiaries for the month of Apr 2013, reflecting an escalation
of 2.9% over the prior month.
We believe Legg Mason has the potential to outperform its peers
in the long run, given its diversified product mix and leverage
to the changing market demography. However, in the near term,
asset outflows will remain a significant headwind. Yet, owing to
the restructuring initiatives and cost-cutting measures, we
expect operating efficiencies to improve for Legg Mason and
dividend payments to continue to inspire investors' confidence in
Currently, Legg Mason holds a Zacks Rank #3 (Hold). Some better
performing asset managers include
AllianceBernstein Holding L.P.
) with a Zacks Rank #1 (Strong Buy).
ALLIANCEBERNSTN (AB): Free Stock Analysis
FRANKLIN RESOUR (BEN): Free Stock Analysis
INVESCO LTD (IVZ): Free Stock Analysis Report
LEGG MASON INC (LM): Free Stock Analysis
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