Legg Mason Inc. LM reported marginal growth in assets under management (AUM) as of Oct 31, 2019, from the previous month. Preliminary month-end AUM came in at $791 billion, up 1.2% from the September 2019 figure of $781.8 billion.
The company’s October AUM displayed $1.8-billion fixed income inflows and alternative inflows of $0.3 billion, partly offset by liquidity and equity net outflows of $1.4 billion and $0.1 billion, respectively. Notably, alternative AUM recorded $0.2 billion of realizations. Further, positive foreign-exchange impact of $2.1 billion was a favorable factor.
Legg Mason’s equity AUM at the end of October advanced 1.9% from the prior-month figure to $207.1 billion. Fixed income AUM was up 1.5% sequentially to $449.3 billion. In addition, alternative assets increased marginally to $72.7 billion.
Rise in fixed income, equity and alternative AUM resulted in long-term AUM of $729.1 billion. The figure marks a 1.5% increase from the previous month. However, liquid assets, which are convertible into cash, were down 2.1% to $61.9 billion.
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 gained around 10.1% over the last three months compared with 11.6% growth recorded by the industry.
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