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MONEY MANAGEMENT

Legg Mason AUM rises 2.5% in quarter; firm sees $800 million in net inflows

Legg Mason (LM) reported $728.4 billion in assets under management as of March 31, up 2.5% from Dec. 31 and up 8.8% from a year earlier, in its earnings statement Wednesday.

The company attributed the growth in AUM to positive net inflows, $17.1 billion in market performance and $4 billion in positive foreign exchange, partially offset by a $3.9 billion reduction resulting from the sales of LMM and Glouston Capital Partners. Net inflows totaled $800 million for the quarter vs. net outflows of $10.9 billion for the previous quarter and net outflows of $16.5 billion for the quarter ended March 31, 2016.

Long-term net inflows of $3.9 billion included fixed-income inflows of $3.5 billion and equity inflows of $3.1 billion, which were partially offset by alternative outflows of $2.7 billion.

Cash/liquidity products saw $3.1 billion in net outflows for the quarter.

“We were pleased to have delivered long-term net inflows led by fixed income at Western (Asset Management Co.) and Brandywine (Global Investment Management) and equity inflows at ClearBridge (Investments) and Martin Currie, which more than offset outflows in alternatives,” said Joseph A. Sullivan, Legg Mason chairman and CEO, in the earnings statement.

As of March 31, fixed income represented 54% of AUM, while equity represented 25%; cash/liquidity, 12%; and alternatives, 9%.

Revenue for the quarter was $723.1 million, up 1% from the prior quarter and up 17% from the same quarter a year earlier. Meanwhile, the company reported net income of $75.9 million for the quarter ended March 31, vs. net income of $51.4 million in the previous quarter and a net loss of $45.3 million in the quarter ended March 31, 2016.