Legg Mason, Citi say rework funds distribution pact

BOSTON, Sept 18 (Reuters) - Asset manager Legg Mason Inc (LM.N) said on Tuesday it reworked a distribution pact with Citigroup Inc (C.N) for some of its funds, including those run by star stock picker Bill Miller, paving the way for them to be sold through new channels.

The second-largest publicly traded U.S. money manager, which traded its brokerage unit two years ago for Citigroup's money management arm, can now sell some share classes of Bill Miller's Value Trust and some other funds through brokerages and outlets its chooses.

It was earlier restricted to selling them exclusively through Citi's Smith Barney brokerage.

"Legg Mason Capital Management will have the opportunity to make its funds more broadly available through firms and platforms that serve investors through fee based arrangements," Legg Mason spokeswoman Mary Athridge said in an e-mailed comment.

Legg Mason Capital Management, one of Legg Mason's units, is the home to Bill Miller's funds. Its investment team, led by Miller, managed $70.9 billion in separate account and pooled assets as of end-June, according to the Legg Mason Web site.

Alex Samuelson, a spokesman for Citi, said the group was "happy to announce the continuation of our partnership."

(Reporting by Muralikumar Anantharaman; additional reporting by Dan Wilchins)