Legg Mason, a US-based investment management firm, has posted an operating income of $33.9m for the fourth quarter of fiscal year 2016, a fall of 73.7% compared to $128.9m a year ago.
For the quarter ended 31 March 2016, the firm reported a net loss of $45.3m, compared to a net income of $83m in the prior year.
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Operating revenues were $619.5m, a decrease of 11.8% from $702.3m a year earlier. Operating expenses increased 2.1% year-on-year to $585.6m.
The group’s assets under management stood at $669.6bn at 31 March 2016, down 5% compared to $702.7bn at 31 March 2015.
Legg Mason chairman and CEO Joseph Sullivan said: "Macro headwinds negatively impacted operating results for the quarter, which were disappointing in terms of long term flows and financial performance. At the same time, it is very clear that we must continue to position Legg Mason longer-term to deliver greater choice to our clients across investment strategy, product, vehicle and distribution access. During the fourth quarter we made significant progress in this regard, as we announced three transactions that continue Legg Mason’s affiliate portfolio transformation that began three years ago.
"With these additions, we have greater flexibility to invest in segments where client preferences are moving and establish new products and solutions in areas where we see the potential for substantial growth long-term. Combined with our strong cash generation and an ongoing commitment to returning capital to shareholders, we remain confident in our ability to create long-term value."
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