American investment management firm Legg Mason has posted a net income of $51.4m for the third quarter of fiscal 2017, compared to a net loss of $138.6m in the third quarter of fiscal 2016.

For the quarter ended 31 December 2016, the company’s operating income was $111.2m as compared to a loss of $240.6m in the previous year.

The company’s quarterly operating revenues stood at $715.2m, an 8.4% rise from $659.6m last year.

The group's assets under management at the end of December 2016 stood at $710.4bn, an increase of 5.8% compared to $671.5bn at the end of December 2015.

Legg Mason chairman and CEO Joseph Sullivan said: “During the quarter, Legg Mason delivered operating results that were in line with market expectations, after excluding some non-cash charges, while continuing to drive strategic progress despite significant industry headwinds. The Company’s operating results reflect higher non-pass through performance fees for the quarter and our continued focus on managing costs.

“Outflows for the quarter were impacted by challenging industry trends for active managers and driven by US equity and alternative strategies, partially offset by fixed income inflows. Investment performance improved during the quarter, and Legg Mason’s global distribution platform had positive net flows for the twelfth time in the last thirteen quarters.”