Legg Mason LM reported marginal fall in assets under management (AUM) as of Aug 31, 2019, from the previous month. Preliminary month-end AUM came in at $776.8 billion, down 0.5% from the July 2019 figure of $780.5 billion.
The company’s August AUM displayed $0.8 billion long-term net inflows, which was more than offset by liquidity outflows of $4.4 billion. Also, negative foreign-exchange impact of $1.4 billion was an unfavorable factor.
Legg Mason’s equity AUM at the end of August declined 2.8% from the prior month to $201 billion. However, fixed income AUM was up 1.5% sequentially to $444.7 billion. Further, alternative assets remained stable at $71.7 billion.
Rise in fixed income AUM and stable alternative AUM resulted in long-term AUM of $717.4 billion. The figure marks a slight increase from the previous month level of$716.7 billion. However, liquid assets, which are convertible into cash, were down 6.9% to $59.4 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 pose headwinds.
Shares of the company have rallied 55.8% so far this year, outperforming 15.9% growth 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.
Performance of Other Asset Managers
Cohen & Steers CNS reported preliminary AUM of $69.6 billion as of Aug 31, 2019, up 3% from the prior-month level of $67.5 billion. Market appreciation of $2 billion and net inflows of $240 million were partly offset by distributions of $186 million.
Invesco’s IVZ preliminary month-end AUM of $1,175.1 billion for August 2016 decreased 2% from the prior month. The decline primarily stemmed from net long-term outflows, reduced money market AUM, foreign exchange, non-management fee earning AUM outflows and unfavorable market returns.
Franklin Resources BEN reported preliminary AUM by its subsidiaries of $690.6 billion for August. Results display 2.7% decrease from the $709.5 billion recorded as of Jul 31, 2019. Slight net outflows and net market declines led to this downside. Further, the reported figure went down 4.4% year on year.
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