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)
Trending On Reuters
We are living longer but not creating financial plans to keep pace. Advisers give tips on how to make sure you don’t outlive your money. Video