Legg Mason Inc. LM , headquartered at Baltimore, reported fall in assets under management (AUM), as of Feb 28, 2018, compared with the prior month. Preliminary month-end AUM came in at $766.7 billion, down 1.7% from January 2018.
February's AUM displayed $2.8-billion fixed income inflows, equity inflows of $0.4 billion and $0.2 billion of alternative inflows, partly offset by liquidity outflows of $0.4 billion. Notably, negative foreign exchange impact of $1.2 billion remained an unfavorable factor.
Legg Mason's equity AUM at the end of February slipped around 4.2% from the prior-month figure to $207.7 billion. Fixed income AUM edged down nearly 1% from the previous month to $421.6 billion. Further, alternative assets decreased moderately to $65.9 billion.
Fall in fixed income, equity AUM and Alternative AUM resulted in long-term AUM of $695.2 billion. The figure marked around 1.8% decline from the previous month. Moreover, liquid assets, which are convertible into cash, moved down slightly to $71.5 billion. Competitive Landscape
Franklin Resources BEN
has announced preliminary AUM by its subsidiaries of $744.9 billion for February 2018. Results display 3.4% drop from $770.8 billion recorded as of Jan 31, 2018. Net market losses and outflows were primarily responsible for this decline. However, the figure inched up around 1% from the prior year.
T. Rowe Price Group, Inc. TROW
reported preliminary AUM of $1.02 trillion for February. Results reflect 2.9% fall from $1.05 trillion as of Jan 31, 2018. Client transfers from mutual funds to other portfolios totaled $4.8 billion for the month.
Invesco Ltd. IVZ
reported preliminary month-end AUM of $945.4 billion for February 2018. The figure indicates 2.8% drop from the prior month. The AUM declined due to unfavorable market returns, foreign exchange, non-management fee earning AUM outflows and net long-term outflows, partially offset by higher money market AUM. Notably, FX decreased February AUM by $5.1 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.
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
Shares of the company have increased around 10.9% over the last six months, underperforming 13.5% growth recorded by the industry
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report Invesco Ltd. (IVZ): Free Stock Analysis Report Legg Mason, Inc. (LM): Free Stock Analysis Report Franklin Resources, Inc. (BEN): Free Stock Analysis Report To read this article on Zacks.com click here.