Friday, 27 March 2015
Last updated 2 hours ago
Oct 26 2012 | 3:08pm ET
Asset management giant Legg Mason reported net inflows of $200 million in its fiscal second quarter, ended September 30, compared to outflows of $17.6 billion a year earlier.
It's the first time the Baltimore money manager has reported a quarter of net inflows since mid-2007.
On the other hand, the positive result was entirely due to investors moving money into more liquid assets (like money market funds, which gained $9.7 billion in Q3) and out of equities and fixed-income, which lost $5.7 billion and $3.8 billion, respectively, reports the Wall Street Journal. Moreover, Legg Mason warned it expects significant withdrawals this month as investors continue to bail on equities funds.
Assets under management rose to $650.7 billion as of the end of September, up from $631.8 billion at the end of the prior quarter.
Legg Mason reported a profit of $80.8 million, up 43% from the prior year. That gain was thank to seed investments and other non-operating contributions—revenue fell 4.4% to $640.3 million.
The firm, which has been battling poor performance and customer redemptions for several years, has also been in the sights of activist hedge fund Trian Fund Management, its second-largest shareholder, which forced the resignation of former Legg Mason chief executive Mark Fetting in October. Legg Mason says finding a replacement for Fetting could take “several months.”
An agreement barring Trian from raising its 9.5% stake in Legg Mason expires next month.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…