Legg Mason reported $645.4 billion in assets under management as of June 30, down 5.7% from the previous quarter and 2% below the year earlier quarter, according to the company's earnings statement issued Monday afternoon.
The asset decline was driven by net outflows of $23.1 billion and market declines of $16 billion, according to the statement.
Fixed-income outflows for the latest quarter were $9.4 billion and money fund outflows were $14.4 billion.
But the $700 million in equity inflows marked the first quarter of such inflows in more than four years.
Performance fees of $22.8 million were in line with the prior quarter due to fees earned at subsidiaries Western Asset Management, Brandywine Global and Permal.
Net income was $47.9 million in the latest quarter, down 25% from three months earlier and down 4% from June 30, 2009.
Revenue totaled $674.2 million, up 0.4% from the prior quarter and 10% from a year earlier.
The company had $357.9 billion in fixed-income assets as of June 30, 1.8% below the previous quarter and down 2.3% from a year earlier. Equity assets totaled $155.8 billion, down 10% from three months earlier but up 8% from June 30, 2009. Money fund, or liquidity, assets totaled $131.7 billion, down 10% from the previous quarter and also 10% below the previous year.
Legg Mason's bond funds accounted for about 55% of the firm's assets under management as of June 30, according to the company. Equity funds made up about 24%, while money funds represented the rest.
Legg Mason said on May 10 that reducing 350 jobs and moving certain technology functions to its investment affiliates will help save $130 million to $150 million by the end of fiscal 2012. The firm said the measures will add 6% to 8% to its operating margin, which was 23% in the latest quarter.
UBS Global Asset Management reported 569 billion Swiss francs ($519.9 billion) in client assets under management as of June 30, down 3.6% from the prior quarter and 4% below the year before.
The decline in assets was driven by market movements and currency effects, only partially offset by net new money inflows. The company, in its earnings statement, did not elaborate.
Net second-quarter inflows were 3.4 billion francs vs. net outflows of 2.6 billion francs the prior quarter and 17.1 billion francs in the year-earlier quarter.
By asset class, traditional strategies saw 4.5 billion francs of net inflows after seeing net outflows of 1 billion francs in the prior quarter and 15.9 billion francs in outflows in the year-earlier quarter. Alternative and quantitative investments saw outflows of 1.2 billion francs in the latest quarter, halving the net outflow in the previous quarter of 2.4 billion francs. Outflows in the year-earlier quarter were also 1.2 billion francs.
For the latest quarter, pre-tax profit was 117 million francs, down 14.6% from the prior quarter, as the division saw lower performance fees from alternative and quant investments and had to make higher payments on staff compensation awards from the prior year. Pre-tax profit in the year-earlier quarter was 82 million francs.
Operating income was 522 million in the latest quarter, up slightly from 521 million the prior quarter and down 1.5% from 530 million in the year-earlier quarter.
Invesco had $557.7 billion in client assets as of June 30, up $100 billion, or 22%, from the prior quarter, on the back of the company's June 1 acquisition of Morgan Stanley's retail asset management business.
Assets under management at Invesco were up 35% from the year before.
For the quarter, Invesco saw net long-term inflows of $13.9 billion in addition to the mostly retail $114.6 billion picked up from the Morgan Stanley acquisition, partly offset by $24.2 billion in market-related declines, $3.4 billion in foreign exchange losses and $900 million in money market outflows.
Overall net long-term inflows for the quarter were up sharply from inflows of $3.6 billion for the prior quarter and $4.4 billion for the year-earlier quarter.
However, a $15.8 billion institutional passive equity mandate from Japan previously managed by Morgan Stanley but not officially included in the acquisition total helped lift Invesco's institutional long-term net inflows for the quarter to $15.7 billion.
In a conference call to discuss the company's latest earnings, CFO Loren M. Starr pointed to the loss of a roughly $1 billion low-fee real estate mandate as a factor behind weak net institutional flows for the latest quarter in the absence of that Japanese mandate. He declined to name either client.
The addition of $105.1 billion in Morgan Stanley retail assets, meanwhile, lifted Invesco's retail AUM to $326 billion as of June 30, up 33% from the prior quarter. Institutional assets came to $216.3 billion as of June 30, up 9.4% from the prior quarter, while private wealth management-related assets came to $15.4 billion, down 1.3%.
The company reported net income attributable to common shareholders of $40.8 million for the latest quarter, down 57% from the prior quarter amid $79 million in transaction and integration costs, and down 46% from the year before.
Net revenue, meanwhile, came to $589 million, up 8.2% from the prior quarter and up 25% from the year before.
Affiliated Managers Group on Tuesday reported $249 billion in client assets being managed by its asset management subsidiaries as of June 30, up 7.3% from the prior quarter and up 43% from the year-earlier quarter.
The holding company's gains were buoyed by $34.1 billion in assets managed by new acquisitions. During the latest quarter, AMG took a majority stake in Pantheon Ventures, a private equity firm with $22 billion in client assets.
For the latest quarter, AMG's subsidiaries pulled in combined net inflows of $283 million, an improvement from net outflows of roughly $1.5 billion in both the prior quarter and the year-earlier quarter.
Market-related declines, however, shaved $17.5 billion off of AMG's assets under management for the latest quarter.
In a conference call, Sean Healey, AMG's president and CEO, said the strong lineup of global equity, emerging markets equity and alternatives strategies offered by his firm's subsidiaries are attracting growing interest from institutional investors, particularly overseas investors. He predicted that momentum could continue to grow.
Along with the promise of stronger internal growth, the holding company's pipeline of new investment opportunities remains strong, Mr. Healey said. The five deals AMG completed in the past 12 months, meanwhile, added roughly $40 billion to the company's client assets.
Helped by those new subsidiaries, AMG reported net income of $25.2 million for the latest quarter, up 44% from the prior quarter and 129% higher than the year before.
Revenue came to $332.1 million, up 32% from the prior quarter and up 65% from the year before.
Rick Baert, Douglas Appell, Drew Carter and Bloomberg contributed to this story.