Legg Mason reported $704.3 billion in assets under management as of June 30, up 0.4% from the end of the previous quarter and up 9% from a year earlier.
The firm's AUM growth was driven by an $18.5 billion increase in market performance, foreign exchange and the addition of $5 billion in AUM related to the acquisition of QS Investors, which was effective May 31, the company said in its earnings report released Thursday.
Legg Mason experienced net outflows of $8.2 billion for the quarter, despite $700 million in long-term net inflows, compared to net inflows of $8.3 billion during the previous quarter and net outflows of $8.5 billion for the year-ago period.
Fixed-income strategies saw net inflows of $2.5 billion, compared to net outflows of $800 million for the quarter ended March 31 and net inflows of $900 million for the second quarter of 2013. Equity strategies experienced net outflows of $1.8 billion, compared to net inflows of $500 million the previous quarter and net outflows of $700 million the previous year.
Liquidity strategies saw net outflows of $8.9 billion for the second quarter, as opposed to net inflows of $8.6 billion for the first quarter and net outflows of $8.7 billion a year ago.
Revenue for the quarter was $693.9 million, up 2% from the previous quarter and up 4% from the same quarter a year ago. Net income, meanwhile, was $72.2 million for the quarter ended June 30, up 5% from the quarter ended March 31 and a 51% rise from the quarter ended June 30, 2013.
“During the quarter we closed the QS Investors transaction (and) made significant progress integrating their business with our legacy capabilities,” said Legg Mason CEO Joseph Sullivan in the earnings statement.
