Mark Fetting, CEO of Legg Mason, said withdrawals at the money manager’s bond fund unit are almost over as investment performance improves.
Withdrawals at the unit, which accounts for about 56% of Legg Mason’s assets, are coming to a “final conclusion,” Mr. Fetting said Monday at the Barclays Global Financial Services Conference in New York. “The performance improvement is profound,” he said.
At the end of June, more than 72% of assets at Legg Mason’s Western Asset Management unit were in funds with the two highest ratings of four and five stars from Morningstar, compared with 7% two years ago, Mr. Fetting said. Investors have pulled more than $250 billion from all Legg Mason funds since March 2008 as they lagged behind rivals, including $9.4 billion from bond funds in the three months ended June 30.
Legg Mason managed $656 billion as of Aug. 31.