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Legg Mason (LM) Reports 2.2% Sequential Growth in May AUM
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Legg Mason Inc. reported 2.2% growth in assets under management (AUM) balance as of May 31, 2020, from the previous month. Preliminary month-end AUM was $780.2 billion, up from the April 2020 figure of $763.1 billion.
The company’s May AUM displayed $0.7 billion fixed-income net inflows and alternative net inflows of $0.1 billion, partly offset by equity net outflows of $0.4 billion. AUM also included liquidity net outflows of $3.2 billion. A positive foreign-exchange impact of $0.1 billion acted as a tailwind.
Legg Mason’s equity AUM at the end of May increased 5.9% from the prior-month figure to $191.1 billion. Fixed income AUM was up 2.2% sequentially to $441.1 billion. Further, alternative assets increased slightly to $73.8 billion.
A considerable rise in equity and fixed income AUM along with a slight increase in alternative AUM resulted in long-term AUM of $706 billion. The figure marked a 3% increase from the previous month. However, liquid assets, which are convertible into cash, were down 4.3% to $74.2 billion.
Our Viewpoint
Legg Mason’s diverse product offerings and investment strategies are likely to continue attracting investors. These along with improving AUM balance are likely to support revenue growth. Further, the company’s focus on expanding product offerings bodes well for the long term. However, continued equity AUM outflows may pose a threat to overall net inflows. Also, increased costs might dampen bottom-line growth.
Shares of the company have rallied 37.6% over the past six months compared with the 0.3% growth recorded by the industry.
Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $617.6 billion for May 2020. Results displayed a 3% increase from $599.4 billion recorded as of Apr 30, 2020. Lower net outflows and a strong market performance led to the upsurge. However, the reported figure declined 11.1% year over year.
AllianceBernstein Holding L.P. (AB - Free Report) announced preliminary May-end AUM of $596 billion, increasing 3.5% from the prior month. Total net inflows and favorable markets were primarily responsible for the rise.
Cohen & Steers (CNS - Free Report) reported preliminary AUM of $63.8 billion as of May 31, 2020, which increased 2.7% from the prior-month level. Market appreciation of $1.4 billion and net inflows of $428 million were partially offset by distributions of $199 million.
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Legg Mason (LM) Reports 2.2% Sequential Growth in May AUM
Legg Mason Inc. reported 2.2% growth in assets under management (AUM) balance as of May 31, 2020, from the previous month. Preliminary month-end AUM was $780.2 billion, up from the April 2020 figure of $763.1 billion.
The company’s May AUM displayed $0.7 billion fixed-income net inflows and alternative net inflows of $0.1 billion, partly offset by equity net outflows of $0.4 billion. AUM also included liquidity net outflows of $3.2 billion. A positive foreign-exchange impact of $0.1 billion acted as a tailwind.
Legg Mason’s equity AUM at the end of May increased 5.9% from the prior-month figure to $191.1 billion. Fixed income AUM was up 2.2% sequentially to $441.1 billion. Further, alternative assets increased slightly to $73.8 billion.
A considerable rise in equity and fixed income AUM along with a slight increase in alternative AUM resulted in long-term AUM of $706 billion. The figure marked a 3% increase from the previous month. However, liquid assets, which are convertible into cash, were down 4.3% to $74.2 billion.
Our Viewpoint
Legg Mason’s diverse product offerings and investment strategies are likely to continue attracting investors. These along with improving AUM balance are likely to support revenue growth. Further, the company’s focus on expanding product offerings bodes well for the long term. However, continued equity AUM outflows may pose a threat to overall net inflows. Also, increased costs might dampen bottom-line growth.
Shares of the company have rallied 37.6% over the past six months compared with the 0.3% growth recorded by the industry.
Legg Mason currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
Franklin Resources (BEN - Free Report) announced preliminary AUM by its subsidiaries of $617.6 billion for May 2020. Results displayed a 3% increase from $599.4 billion recorded as of Apr 30, 2020. Lower net outflows and a strong market performance led to the upsurge. However, the reported figure declined 11.1% year over year.
AllianceBernstein Holding L.P. (AB - Free Report) announced preliminary May-end AUM of $596 billion, increasing 3.5% from the prior month. Total net inflows and favorable markets were primarily responsible for the rise.
Cohen & Steers (CNS - Free Report) reported preliminary AUM of $63.8 billion as of May 31, 2020, which increased 2.7% from the prior-month level. Market appreciation of $1.4 billion and net inflows of $428 million were partially offset by distributions of $199 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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