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Legg Mason AUM Ascends in August, Liquidity Inflows Recorded


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Legg Mason Inc. LM reported a slight rise in assets under management (AUM) as of Aug 31, 2018, from the prior month. Preliminary month-end AUM came in at $751.8 billion, up from the July 2018 figure of $749.2 billion.

August AUM displayed $0.7-billion fixed income outflows, equity net outflows of $0.6 billion and alternative net outflows of $0.1 billion, fully offset by $2.9 billion of liquidity inflows. Notably, negative foreign exchange impact of $1.7 billion remained an unfavorable factor.

Legg Mason's equity AUM at the end of August inched up 1.7% from the prior-month figure to $215.7 billion. Fixed income AUM dipped slightly sequentially to $409.5 billion. Further, alternative assets decreased moderately to $65.8 billion.

Fall in fixed income and Alternatives AUM was partly offset by rise in equity AUM, resulting in long-term AUM of $691 billion. The figure marks a marginal fall from the previous month. Moreover, liquid assets, which are convertible into cash, moved up 4.8% to $60.8 billion.

Competitive Landscape

Franklin Resources BEN has announced preliminary AUM by its subsidiaries of $722.4 billion for August 2018. Results display 1.5% fall from $733.7 billion recorded as of Jul 31, 2018. Net market losses and net outflows were undermining factors. Also, the figure dipped 3.3% from the previous year.

T. Rowe Price Group, Inc. TROW announced preliminary AUM of $1.09 trillion for August 2018. Results reflect nearly 2% rise from $1.07 trillion recorded on Jul 31, 2018. Client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.6 billion in August.

Though Invesco Ltd's IVZ preliminary month-end AUM as of Aug 31, 2018 of $988 billion remained stable compared to the previous month, all its AUM segments, except Equity AUM, witnessed a fall. While favorable market returns and non-management fee earning AUM benefited the company's AUM, net long-term outflows and decrease in balanced AUM were the downside. Moreover, foreign exchange dragged down the month's AUM by $1.2 billion.

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. Nonetheless, absence of continued growth in equity markets and foreign-exchange fluctuations remain headwinds.

Shares of the company have lost around 24.6% over the last six months compared with 8.4% decline recorded by 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 .

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

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

Invesco Ltd. (IVZ): Free Stock Analysis Report

T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: BEN , LM , IVZ , TROW



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