Legg Mason reported $707.8 billion in assets under management as of Sept. 30, up 0.5% from the end of the previous quarter and up 8% from a year earlier.
The firm experienced net inflows of $13.4 billion for the quarter, compared with net outflows of $8.2 billion from the previous quarter and net outflows of $1.4 billion during the third quarter of 2013. Liquidity strategies saw net inflows of $12.7 billion for the third quarter, compared to net outflows of $8.9 billion for the previous quarter and net inflows of $2.3 during year-earlier quarter, the company said in its latest quarterly statement.
Long-term strategies saw inflows of $700 million for the quarter ended Sept. 30. These were offset by negative market performance and foreign exchange of $9.9 billion.
Equity inflows were $1.6 billion for the quarter ended Sept. 30 vs. net outflows of $1.8 billion for the quarter ended June 30 and net outflows of $4 billion during the quarter ended Sept. 30, 2013, while fixed-income outflows were $900 million, compared to net inflows of $2.5 billion for the previous quarter and net inflows of $300 million for the year-earlier quarter.
Fixed income represented 51% of Legg Mason's AUM as of Sept. 30, while equity represented 27%. Liquidity represented 22%.
Revenue for the quarter was $703.9 million, up 1% from the previous quarter and up 5% from the same quarter a year ago. Net income, meanwhile, was $4.9 million for the quarter ended Sept. 30, down 93% from the quarter ended June 30 and down 94% from the quarter ended Sept. 30, 2013.
The decline in net income is attributable to a $107.1 million charge related to debt refinancing initiated in the prior quarter and finalized in July.
“During the period, we completed a transaction refinancing our debt at current historically low rates while meaningfully laddering out our maturities,” said Legg Mason President and CEO Joseph Sullivan in the firm's earnings statement released Friday. “While this restructuring impacted the current quarter, the resulting decrease in our run-rate interest expense and enhanced financial flexibility will benefit shareholders over the long-term.”
