Legg Mason 4Q profits jump 15%

Legg Mason Inc. posted a 15% increase in net income as increased advisory fees drove assets under management to record levels.
MAY 09, 2007
Legg Mason Inc. posted a 15% increase in net income as increased advisory fees drove assets under management to record levels. The Baltimore-based global asset management company posted net income of $172.5 million, or $1.19 per share for the fourth quarter ended March 31, up from $150.1 million, or $1.03 cents per share during the year-ago period. Revenues hit a record $1.14 billion, marking an 8% increase from the $1.05 billion recorded in the fourth quarter of the 2006 fiscal year. Analysts surveyed by Thomson Financial were expected profit of $1.17 per share on revenue of $1.13 billion. Assets under management ended the quarter at $968.5 billion, up 12% from $867.6 billion during the year-ago period. Net inflows for the fiscal year were $44.2 billion. Investment advisory fees for funds grew 14.6% to $542.7, compared to $514.1 million during the fiscal fourth quarter of 2006. Meanwhile, investment advisory fees for separate accounts increased 5.4% to $376.3 million, compared to $357.1 million during the fourth year-ago quarter.

Latest News

Merrill to pay $39 million in cash sweep settlement
Merrill to pay $39 million in cash sweep settlement

The financial advice industry has been facing inquiries into its cash sweep programs for years now.

SEC accuses fund advisor of defrauding SpaceX, OpenAI investors
SEC accuses fund advisor of defrauding SpaceX, OpenAI investors

Investor money allegedly went to strip clubs, exotic cars, and landscaping

RIA moves: Savant enters Thousand Oaks as Procyon lands in New Jersey
RIA moves: Savant enters Thousand Oaks as Procyon lands in New Jersey

Procyon adds $415 million in assets under management in New Jersey while Savant picks up a $213 million Southern California planning firm

Beyond sell or inherit: A third exit for appreciated property
Beyond sell or inherit: A third exit for appreciated property

With a growing number of real estate-rich Baby Boomers aging into retirement, some advisors may be failing to consider all the options available for those clients' assets.

AI marketing adoption gap costs financial firms revenue
AI marketing adoption gap costs financial firms revenue

Cornerstone Advisors study reveals compliance bottlenecks stall campaigns weeks after customer opportunities close.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains