American asset manager Legg Mason plans to wind down its emerging markets equities subsidiary based in London and Hong Kong and return money to investors after weak performance.
The subsidiary, Esemplia Emerging Markets, which had about US$500 million in assets and employs 25 people, will start winding down given its small size, Mary Athridge, a spokeswoman for Legg Mason said.
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Athridge added that Legg Mason will remain committed to building its international equity capabilities internally or through an acquisition.
Esemplia head Jim Kandunias will stay to ensure an orderly closure in coming quarters, she said.
The firm continues to restructure under its new CEO, Joseph Sullivan, who joined the firm in October to improve its performance and efficiency.
Legg Mason intends to review smaller units and it has agreed to sell Private Capital Management, which manages equity portfolios for high-net-worth investors and institutions, to its management team.
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By GlobalDataAs part of a move, Legg Mason is also planning to close two funds available to UK investors.
As of 30 June 2013, the firm managed US$644.5 billion in assets.
