Legg Mason (LM) January AUM Increases, Outflows Recorded

An image of a pen, a tablet and a calculator
Credit: Shutterstock photo

Baltimore-based Legg Mason Inc.LM reported a rise in its assets under management (AUM) as of Jan 31, 2017, as compared with the prior month. Preliminary month-end AUM came in at $713.8 billion, slightly up from Dec 2016.

January's AUM displayed fixed income outflows of $1.0 billion, $0.8 billion equity outflows, alternative outflows of $0.7 billion and liquidity outflows of $4.0 billion. However, positive foreign exchange impact of about $3.7 billion was a favorable factor.

Legg Mason's equity AUM at the end of Jan 2017 increased 2% from the prior-month figure to $172.4 billion. Moreover, fixed income AUM inched up around 1% from the previous month to $385.1 billion. Alternative assets, including AUM managed by Clarion Partners, EnTrustPermal, RARE Infrastructure and Glouston Capital declined slightly to $71 billion.

The increase in equity and fixed income, partially offset by the decline in Alternative AUM, resulted in long-term AUM of $628.5 billion. The figure marked a 1.1% decrease from the prior month. Moreover, liquid assets, which are convertible into cash, decreased around 3.9% to $85.3 billion.

Competitive Landscape

Among other investment managers, Franklin Resources Inc. BEN inched up 1.86% after the company announced preliminary AUM by its subsidiaries of $728.8 billion for Jan 2017. The results exhibited around 1.2% rise from $720.0 billion as of Dec 31, 2016. However, the figure was almost in line with the prior year.

Further, Invesco Ltd. IVZ reported preliminary month-end AUM of $825.3 billion, up 1.5% from the previous month. The rise was supported by favorable market returns, foreign exchange and net long-term inflows, partially offset by a decline in money market AUM and outflows in PowerShares QQQs.

Our Viewpoint

Though absence of consistent growth in equity markets remain headwinds, we believe that Legg Mason has the potential to outperform its peers over the long run, given its diversified product mix, positiveforeign exchange fluctuations and leverage to the changing market demography.

Currently, Legg Mason carries a Zacks Rank #3 (Hold). The company's stock dropped 23.8% in 2016, underperforming the 3.3% growth for the Zacks categorized Investment Management industry.

A better-ranked finance company is Apollo Global Management, LLC APO , sporting a Zacks Rank #1 (Strong Buy). The company's shares gained over 27.5% in 2016. The Zacks Consensus Estimate for the stock climbed 9.8% to $2.25, over the last 30 days, for 2017.

You can see the complete list of today's Zacks #1 Rank stocks here .

Zacks' Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

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

Invesco PLC (IVZ): Free Stock Analysis Report

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

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

Apollo Global Management, LLC (APO): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

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

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More