US-based investment management firm Legg Mason has reported net income of $33.5m for the first quarter of fiscal year 2017, down 65% compared to $94.5m the year ago.
Operating Income for the period was $73.6m, a fall of 41% from $124.5m in the prior year.
Operating revenues stood at $700.2m, a decrease of 1% from $708.6m the year earlier, while operating expenses increased 7% year-on-year to $626.6m from $584.1m.
The group's assets under management at 30 June 2016 were $741.9bn, up 6% from $699.2bn the year ago.
Legg Mason chairman and CEO Joseph Sullivan said: “Legg Mason delivered a solid quarter despite a challenging period of geopolitical uncertainty, persistently low interest rates, fee compression and equity market volatility that has continued to pressure active managers. The Company saw strong inflows in fixed income for the quarter, but they were more than offset by outflows from active equity and alternative products, consistent with industry trends.
“On the strategic front, we continued to move forward, closing the acquisition of Clarion Partners and the combination of EnTrustPermal during the period, while also announcing an agreement to acquire Financial Guard, a digital wealth manager that aggregates accounts, and evaluates and recommends active and passive funds. Over time, we expect that Financial Guard will become a key component of our value proposition to our distribution partners.”