Legg Mason reported client assets of $684.5 billion as of March 31, up 0.4% from the prior quarter and 8.2% above the year-earlier quarter.
According to a company news release, market-related gains of $13.8 billion for the latest quarter more than offset net client outflows of $10.9 billion. Those outflows were down sharply from $32.7 billion in the prior quarter and $43.5 billion for the year-earlier quarter.
For the latest quarter, fixed-income strategies accounted for $8 billion of overall outflows, with equities and liquidity seeing net redemptions of $2.4 billion and $500 million, respectively.
Net income of $63.6 million in the quarter ended March 31 was up 42% from the prior quarter and a rebound from the year-earlier quarter’s $330 million loss.
Total operating revenues, meanwhile, came to $671.4 million, down 2.8%, reflecting lower average AUM for the latest quarter. Revenues were up 8.8% from the year before.
Separately, Legg Mason plans to eliminate roughly 350 positions, mostly related to technology and operations, over the coming six to 18 months, spokeswoman Mary Athridge said in an e-mail.
That would reduce the firm’s corporate work force, as opposed to those working at the company’s money management affiliates, by more than 20%. No money management personnel are included in the staff cuts.
Mark R. Fetting, chairman and CEO, said in the news release that the company will “transition certain shared services to investment affiliates where they will be closer to the actual client relationships and can be delivered with greater effectiveness.” The moves are an effort to further streamline Legg Mason’s multimanager business model, he said.