Legg Mason reported $662.5 billion in assets under management as of June 30, down 2.2% from the prior quarter but up 2.6% from the year earlier period.
The firm reported $3.7 billion in outflows from its long-term equity and bond strategies in the latest quarter, down from outflows of $8 billion for the prior quarter and $8.7 billion for the year-earlier quarter.
By asset class, the company reported $5.8 billion in equity outflows but $100 million of fixed-income inflows — its first positive quarter on the bond side since December 2007, noted Mark R. Fetting, the company's chairman and CEO, on a conference call Thursday. The company also reported $2 billion in money market inflows.
Market-related gains came to $8 billion for the quarter, more than offsetting the company's net outflows.
Two key reasons for the drop in AUM were the previously announced shift of $18.1 billion of liquidity assets, which Legg Mason had managed on behalf of clients of Morgan Stanley Smith Barney, that MSSB took in-house during the past quarter, and an additional $1.3 billion from Legg Mason's divestiture of Barrett Associates.
For the latest quarter, the company reported net income attributable to Legg Mason Inc. of $60 million, down 13% from the prior quarter — in part due to expenses related to the launch of a closed-end fund — but up 25% from the year-earlier quarter.
The company reported total operating revenue of $717.1 million, up 0.5% from the prior quarter and up 6.4% from the year before.