Legg Mason on Thursday reported $611.8 billion in combined assets under management for its money management affiliates as of Sept. 30, down 7.7% from the prior quarter and off 9.2% from the year before.
Net outflows jumped to $17.6 billion, up sharply from outflows of $3.7 billion for the prior quarter and $12.7 billion for the year-earlier period. By asset class, the company's affiliates saw outflows of $8.8 billion from fixed-income strategies, $5.7 billion from equity strategies and $3.1 billion from liquidity products.
Market-related declines, meanwhile, accounted for $32.9 billion of the overall $50.7 billion drop in AUM from the prior quarter. In addition, there were $200 million of net dispositions in the quarter.
As of Sept. 30, fixed-income AUM came to $356 billion, or 58% of overall AUM, followed by equity assets, at $145 billion, or 24%, and liquidity assets of $111 billion, or 18%.
Net income for the quarter was $56.7 million, down 5.5% from the prior quarter and off 25% from the year before.
Operating revenues, meanwhile, came to $669.9 million, down 6.6% from the prior quarter and off 0.7% from the year before.
On a conference call Thursday discussing Legg Mason's latest results, Mark R. Fetting, the company's chairman and CEO, said the market's sharp spike in volatility during the quarter “pushed many investors to the sidelines.” But he noted that the news in October — both on the market front and more recently from Europe — has been more encouraging.
