Legg Mason on Friday reported a 3% increase in assets under management to $650.7 billion in the quarter ended Sept. 30 — the first quarter of net inflows for the money manager in six years.
The asset total was 6% higher than the year-earlier quarter, the company reported in an earnings release.
The quarterly increase was driven primarily by market appreciation of $20.7 billion, along with the $200 million in net inflows.
Net income was $80.8 million in the quarter, compared with a net loss of $9.5 million in the previous quarter and net income of $56.7 million in the year-earlier quarter.
Revenue of $640.3 million in the Sept. 30 quarter was up 2%, primarily because of an extra business day in the quarter, the company said. It decreased 4% from the previous year.
The results come as Legg Mason is searching for a new CEO after Mark Fetting stepped down from the top spot Oct. 1. Analysts have questioned whether some of Legg Mason's nine investment affiliates, which include Western Asset Management Co., Permal Group and Royce & Associates, could be sold.
In a call with analysts on Friday, interim CEO Joseph Sullivan said the company is committed to the affiliate model, but noted that Legg Mason has sold affiliates and made structural changes in the past.
“These are things that we have done in the past and we're going to be open to doing in the future,” Mr. Sullivan said