CORRECTED-UPDATE 1-Legg Mason turns to profit with long-term inflows
(Corrects "billion" to "million" in fifth paragraph)
July 25 (Reuters) - Asset manager Legg Mason Inc said on Thursday it swung to a profit in the fiscal first quarter ended June 30 and posted its first quarterly net inflows for long-term funds since 2007 on investment into its bond products.
Legg Mason reported net income of $47.8 million, or 38 cents per share, compared with a loss of $9.5 million, or 7 cents a share, in the same period a year earlier, when it recorded charges.
Analysts surveyed by Thomson Reuters I/B/E/S had expected Legg Mason to earn 36 cents per share for the most recent quarter.
Assets under management fell to $644.5 billion at June 30 from $664.6 billion at March 31. The decrease was driven by an $11.6 billion decline in market performance and foreign exchange, as well as the net withdrawal of $8.7 billion from its liquidity funds, the company said.
But net flows into long-term funds were $200 million, Legg Mason said, as the $900 million that investors added to bond funds more than offset the $700 million they withdrew from equity funds.
The inflows for long-term funds during the quarter were the first the company has posted since September, 2007, Legg Mason said. (Reporting by Ross Kerber; Editing by Jeffrey Benkoe and Alden Bentley)
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