Yahoo Finance Legg Mason's (LM) AUM Up in January, Net Outflows Recorded
Legg Mason Inc. LM, headquartered at Baltimore, reported 1.6% rise in assets under management (AUM), as of Jan 31, 2018, compared with the prior month. Preliminary month-end AUM came in at $779.6 billion, up 1.6% from December 2017.
January’s AUM displayed $2.1-billion fixed income inflows, mostly offset by net equity outflows of $1.4 billion, liquidity outflows of $1.6 billion and $0.1 billion of alternative outflows. Notably, positive foreign exchange impact of $4.1 billion remained a favorable factor.
Legg Mason’s equity AUM at the end of January increased around 4.4% from the prior-month figure to $216.7 billion. Fixed income AUM inched up 1.2% from the previous month to $425 billion. However, alternative assets edged down moderately to $66 billion.
Rise in fixed income and equity AUM, partially offset by lower Alternative AUM, resulted in long-term AUM of $707.7 billion. The figure marked around 2% growth from the previous month. However, liquid assets, which are convertible into cash, moved down 1.8% to $71.9 billion.
Competitive Landscape
Franklin BEN has announced preliminary AUM by its subsidiaries of $770.8 billion for January 2018. Results display 2.3% rise from $753.8 billion recorded as of Dec 31, 2017. Nevertheless, the figure ascended 5.8% year over year.
T. Rowe Price Group, Inc. TROW reported preliminary AUM of $1.05 trillion for January. Results reflect 5.7% rise from $991 billion as of Dec 31, 2017. Client transfers from mutual funds to other portfolios totaled $3.7 billion for the month.
Among others, Invesco Ltd. IVZ is expected to announce preliminary month-end AUM for January 2018, later this week.
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 inched up around 1.8% over the last six months, underperforming 7.7% growth recorded by the industry.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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 PLC (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.
Zacks Investment Research
