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Legg Mason's (LM) February AUM Increases on Net Inflows

Zacks Equity Research

Legg Mason Inc. LM reported 2.2% rise in assets under management (AUM) as of Feb 28, 2019, from the previous month. Preliminary month-end AUM came in at $762.8 billion, up from the January 2019 figure of $746.7 billion.

February AUM included $1.2 billion of long-term net inflows and liquidity net inflows of $9.6 billion. However, unfavorable foreign exchange impact of $1.5 billion acted as a headwind.

Legg Mason’s equity AUM at the end of February grew 3% from the prior month to $202.2 billion. Further, alternative assets rose nearly 1% to $66.9 billion. On the other hand, fixed income AUM was relatively stable at $414.1 billion.

Rise in alternatives and equity AUM resulted in long-term AUM of $683.2 billion. The figure marks almost 1% increase from the previous month. Moreover, liquid assets, which are convertible to cash, improved 14% to $79.6 billion.

Our Take

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, foreign-exchange fluctuations and equity outflows remain major headwinds.

Shares of the company have rallied 10.7% over the past three months compared with the 12.3% rise for 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

Franklin Resources BEN announced preliminary AUM by its subsidiaries of $714.2 billion for February. Results reflect a rise of5.3% from $678.3 billion recorded as of Jan 31. The increase was primarily driven by to market appreciation and the acquisition of Benefit Street Partners L.L.C.

Cohen & Steers CNS reported preliminary AUM of $60.8 billion as of Feb 28, 2019, up 1.3% from the prior month. Market appreciation of $624 million and net inflows of $350 million supported AUM growth.

Invesco’s IVZ preliminary month-end AUM was $945.7 billion as of Feb 28, 2019, which increased 1.6% from the prior month. Favorable market returns, foreign exchange and higher money market AUM were the primary reasons behind the rise.

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