Legg Mason reported $730.8 billion in assets under management as of March 31, down 9% from the previous quarter and down 3.6% from a year earlier, the firm's quarterly earnings release said Wednesday.
In the three months ended March 31, Legg Mason had $12.1 billion in long-term net outflows vs. net outflows of $1.6 billion in the previous quarter and no net flows in the first three months of 2019.
AUM declines over the previous quarter reflect "$64.2 billion in negative market performance and other, long-term outflows of $12.1 billion, negative foreign exchange of $7.8 billion and realizations of $200 million, partially offset by liquidity inflows of $11.6 billion," an earnings release said.
The company will not hold a quarterly earnings call with analysts, a spokeswoman said.
Total net client outflows, which include liquidity products, were $500 million in the three months ended March 31, which is Legg Mason's fourth fiscal quarter. During the three months ended Dec. 31, total net outflows were $1.6 billion, compared to $8.1 billion in net outflows during the first quarter of 2019.
Legg Mason's revenue during the three months ended March 31 was $719.6 million, down 4.5% from the previous quarter and up 3.9% over the year-earlier quarter.
"This has been one of the most eventful periods in our history, as the COVID-19 pandemic and resulting global economic 'shut down' rightfully overshadowed the significant announcement of Legg Mason's pending acquisition by Franklin Templeton," Joseph A. Sullivan, Legg Mason chairman and CEO, said in a statement in Wednesday's earnings release.
"Recent events have only reinforced the importance of this combination, as the transaction will create a bigger and more diversified business with extensive global distribution capabilities, a powerful global operating infrastructure and the financial strength to invest in better serving our clients through market cycles," Mr. Sullivan said.
Legg Mason announced on Feb. 18 that it would be acquired by Franklin Templeton, creating a $1.5 trillion asset manager once combined in the $4.5 billion deal, which is expected to close by the third quarter.
