Date of Report (Date of earliest event reported) | October 30, 2015 |
LEGG MASON, INC. |
(Exact name of registrant as specified in its charter) |
Maryland | 1-8529 | 52-1200960 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
100 International Drive, Baltimore, Maryland | 21202 | |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: | (410) 539-0000 |
Not Applicable |
(Former name or former address if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. | ||||
On October 30, 2015, Legg Mason, Inc. announced its results of operations for the quarter ended September 30, 2015. A copy of the related press release is attached hereto as Exhibit 99. | |||||
The information in this Section 2.02 and Exhibit 99 attached hereto shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. | |||||
Item 9.01 | Financial Statements and Exhibits. | ||||
(d) | Exhibits | ||||
Exhibit No. | Subject Matter | ||||
99 | Press Release of Legg Mason, Inc. dated October 30, 2015 |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. |
LEGG MASON, INC. | |||
(Registrant) | |||
Date: October 30, 2015 | By: | /s/ Thomas C. Merchant | |
Thomas C. Merchant | |||
Executive Vice President and General Counsel |
Exhibit No. | Subject Matter | ||
99 | Press Release of Legg Mason, Inc. dated October 30, 2015 |
Investor Relations: | Media: | |||
Alan Magleby | Mary Athridge | |||
410-454-5246 | 212-805-6035 | |||
amagleby@leggmason.com | mkathridge@leggmason.com |
(Amounts in millions, except per share amounts) | |||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||
Sep | Jun | Sep | Sep | Sep | |||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
Operating Revenues | $ | 673.1 | $ | 708.6 | $ | 703.9 | $ | 1,381.7 | $ | 1,397.8 | |||||||||
Operating Expenses | 540.1 | 584.1 | 573.5 | 1,124.2 | 1,147.9 | ||||||||||||||
Operating Income | 133.0 | 124.5 | 130.4 | 257.5 | 249.9 | ||||||||||||||
Net Income1 | 64.3 | 94.5 | 4.9 | 158.9 | 77.1 | ||||||||||||||
Adjusted Income2 | 99.1 | 129.3 | 40.6 | 228.4 | 147.8 | ||||||||||||||
Net Income Per Share - Diluted1 | 0.58 | 0.84 | 0.04 | 1.42 | 0.66 | ||||||||||||||
Adjusted Income Per Share - Diluted2 | 0.89 | 1.14 | 0.35 | 2.03 | 1.26 | ||||||||||||||
(1) Net Income Attributable to Legg Mason, Inc. | |||||||||||||||||||
(2) See “Use of Supplemental Non-GAAP Financial Information.” |
• | Long-term net inflows of $3.1 billion included fixed income inflows of $3.0 billion and equity inflows of $0.1 billion. |
• | At September 30, 2015, fixed income represented 55% of AUM, while equity represented 26%, and liquidity represented 19%. |
• | By geography, 64% of AUM was from clients domiciled in the United States and 36% from non-US domiciled clients. |
• | Average AUM during the quarter was $687.2 billion compared to $703.9 billion in the prior quarter and $704.1 billion in the second quarter of fiscal year 2015. Average long-term AUM was $560.4 billion compared to $575.6 billion in the prior quarter and $558.7 billion in the second quarter of fiscal year 2015. |
• | Operating revenues of $673.1 million were down 5% from $708.6 million in the prior quarter, reflecting a 2% decrease in average AUM, a less favorable AUM mix and lower performance fees. |
• | Operating expenses of $540.1 million were down 8% from $584.1 million in the prior quarter primarily due to lower revenue share compensation related to lower revenues. Last quarter's expenses included $11.5 million in higher seasonal compensation costs. The current quarter expenses included a $5.5 million loss in the market value of deferred compensation and seed investments, which is recorded as a decrease in compensation and benefits with an offset in other non-operating income, compared to a gain of $1.2 million in the prior quarter. |
• | Other non-operating expense was $42.5 million compared to $4.5 million in the prior quarter. Other non-operating expenses included an $11.1 million loss on an Australian dollar hedge related to the RARE Infrastructure acquisition as well as losses on corporate investments, not offset in compensation of $11.5 |
• | Operating margin was 19.8%, as compared to 17.6% in the prior quarter. Operating margin, as adjusted2, was 24.0%, as compared to 22.6% in the prior quarter. |
• | Adjusted income was $99.1 million, or $0.89 per diluted share, as compared to adjusted income of $129.3 million, or $1.14 per diluted share, in the prior quarter. |
• | Operating revenues of $673.1 million were down 4% compared with $703.9 million in the second quarter of fiscal year 2015, reflecting a less favorable AUM mix, lower performance fees and a 2% decline in average AUM. |
• | Operating expenses of $540.1 million were down 6% compared with $573.5 million in the second quarter of fiscal year 2015 primarily due to lower revenue share compensation related to lower revenues. In addition, the prior year quarter included $8.7 million in costs related to the QS Investors integration and other corporate initiatives. The current quarter expenses also included a loss of $5.5 million in the market value of deferred compensation and seed investments, which are recorded as a decrease in compensation and benefits with an offset in other non-operating income, compared to a loss of $0.4 million in the prior year quarter. |
• | Other non-operating expense was $42.5 million, as compared to $121.5 million in the second quarter of fiscal year 2015. Other non-operating expenses included an $11.1 million loss on an Australian dollar hedge related to the RARE Infrastructure acquisition as well as losses on corporate investments, not offset in compensation, of $11.5 million compared with losses of $0.7 million in the prior year quarter. The prior year quarter included a $107.1 million charge related to the debt refinancing. Both quarters included losses on funded deferred compensation and seed investments, as described above. In addition, the current quarter also included $2.3 million in losses associated with consolidated investment vehicles, as compared to $0.1 million in losses in the prior year quarter. The consolidation of investment vehicles has no impact on net income as the effects of consolidation are fully attributable to noncontrolling interests. |
• | Operating margin was 19.8%, as compared to 18.5% in the second quarter of fiscal year 2015. Operating margin, as adjusted, was 24.0%, as compared to 23.8% in the second quarter of fiscal year 2015. |
• | Adjusted income was $99.1 million, or $0.89 per diluted share, as compared to adjusted income of $40.6 million, or $0.35 per diluted share, in the second quarter of fiscal year 2015. |
• | Legg Mason announced on July 28th the agreement to acquire RARE Infrastructure Limited, a pioneer in global listed infrastructure investing headquartered in Sydney, Australia. The transaction closed on October 21, 2015. |
• | On September 4, 2015 Legg Mason filed a preliminary prospectus for its first four smart-beta ETFs, subadvised by QS Investors. |
At September 30, 2015: | |||||
1-Year | 3-Year | 5-Year | 10-Year | ||
% of Strategy AUM beating Benchmark3 | 44% | 84% | 85% | 88% | |
% of Long-Term US Fund Assets Beating Lipper Category Average3 | |||||
Equity | 33% | 45% | 56% | 50% | |
Fixed Income | 67% | 69% | 82% | 80% | |
Total US Fund Assets | 48% | 55% | 67% | 62% |
LEGG MASON, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||
September | June | September | September | September | |||||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
Investment advisory fees: | |||||||||||||||||||||||
Separate accounts | $ | 205,155 | $ | 208,104 | $ | 204,739 | $ | 413,259 | $ | 409,509 | |||||||||||||
Funds | 359,871 | 384,345 | 389,238 | 744,216 | 770,865 | ||||||||||||||||||
Performance fees | 7,902 | 18,653 | 13,993 | 26,555 | 30,296 | ||||||||||||||||||
Distribution and service fees | 99,602 | 96,860 | 94,481 | 196,462 | 184,197 | ||||||||||||||||||
Other | 556 | 688 | 1,444 | 1,244 | 2,909 | ||||||||||||||||||
Total operating revenues | 673,086 | 708,650 | 703,895 | 1,381,736 | 1,397,776 | ||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Compensation and benefits | 282,433 | 315,052 | 303,878 | 597,485 | 609,384 | ||||||||||||||||||
Distribution and servicing | 138,930 | 149,288 | 155,100 | 288,218 | 303,808 | ||||||||||||||||||
Communications and technology | 49,845 | 48,677 | 44,624 | 98,522 | 86,574 | ||||||||||||||||||
Occupancy | 25,716 | 25,987 | 22,710 | 51,703 | 49,667 | ||||||||||||||||||
Amortization of intangible assets | 670 | 657 | 464 | 1,327 | 1,359 | ||||||||||||||||||
Other | 42,462 | 44,446 | 46,764 | 86,908 | 97,083 | ||||||||||||||||||
Total operating expenses | 540,056 | 584,107 | 573,540 | 1,124,163 | 1,147,875 | ||||||||||||||||||
Operating Income | 133,030 | 124,543 | 130,355 | 257,573 | 249,901 | ||||||||||||||||||
Other Non-Operating Income (Expense): | |||||||||||||||||||||||
Interest income | 1,229 | 1,317 | 1,680 | 2,546 | 4,205 | ||||||||||||||||||
Interest expense | (13,280 | ) | (11,949 | ) | (14,975 | ) | (25,229 | ) | (32,033 | ) | |||||||||||||
Other income (expense), net, including $107,074 | |||||||||||||||||||||||
debt extinguishment loss in September 2014 | (28,110 | ) | 5,711 | (108,156 | ) | (22,399 | ) | (101,908 | ) | ||||||||||||||
Other non-operating income (expense) of | |||||||||||||||||||||||
consolidated investment vehicles, net | (2,303 | ) | 407 | (79 | ) | (1,896 | ) | 2,928 | |||||||||||||||
Total other non-operating income (expense) | (42,464 | ) | (4,514 | ) | (121,530 | ) | (46,978 | ) | (126,808 | ) | |||||||||||||
Income Before Income Tax Provision | 90,566 | 120,029 | 8,825 | 210,595 | 123,093 | ||||||||||||||||||
Income tax provision | 27,647 | 25,090 | 3,804 | 52,737 | 44,460 | ||||||||||||||||||
Net Income | 62,919 | 94,939 | 5,021 | 157,858 | 78,633 | ||||||||||||||||||
Less: Net income (loss) attributable | |||||||||||||||||||||||
to noncontrolling interests | (1,400 | ) | 391 | 124 | (1,009 | ) | 1,548 | ||||||||||||||||
Net Income Attributable to Legg Mason, Inc. | $ | 64,319 | $ | 94,548 | $ | 4,897 | $ | 158,867 | $ | 77,085 | |||||||||||||
Net Income per Share Attributable to | |||||||||||||||||||||||
Legg Mason, Inc. Shareholders: | |||||||||||||||||||||||
Basic | $ | 0.58 | $ | 0.85 | $ | 0.04 | $ | 1.43 | $ | 0.66 | |||||||||||||
Diluted | $ | 0.58 | $ | 0.84 | $ | 0.04 | $ | 1.42 | $ | 0.66 | |||||||||||||
Weighted-Average Number of Shares | |||||||||||||||||||||||
Outstanding: (1) | |||||||||||||||||||||||
Basic | 110,624 | 111,691 | 115,799 | 111,154 | 116,459 | ||||||||||||||||||
Diluted | 111,556 | 112,971 | 116,940 | 112,258 | 117,574 | ||||||||||||||||||
(1) Includes weighted-average unvested restricted shares deemed to be participating securities of 2,772, 2,737, and 3,109 for the quarters ended September 2015, June 2015, and September 2014, respectively, and 2,754 and 3,059 for the six months ended September 2015 and September 2014, respectively. | |||||||||||||||||||||||
LEGG MASON, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||
Quarters Ended | ||||||||||||||||||||||||||||||||||||||
September 2015 | June 2015 | September 2014 | ||||||||||||||||||||||||||||||||||||
Balance Before Consolidation of Consolidated Investment Vehicles | Consolidated Investment Vehicles | Consolidated Totals | Balance Before Consolidation of Consolidated Investment Vehicles | Consolidated Investment Vehicles | Consolidated Totals | Balance Before Consolidation of Consolidated Investment Vehicles | Consolidated Investment Vehicles | Consolidated Totals | ||||||||||||||||||||||||||||||
Total operating revenues | $ | 673,168 | $ | (82 | ) | $ | 673,086 | $ | 708,735 | $ | (85 | ) | $ | 708,650 | $ | 704,079 | $ | (184 | ) | $ | 703,895 | |||||||||||||||||
Total operating expenses | 540,023 | 33 | 540,056 | 584,087 | 20 | 584,107 | 573,486 | 54 | 573,540 | |||||||||||||||||||||||||||||
Operating Income (Loss) | 133,145 | (115 | ) | 133,030 | 124,648 | (105 | ) | 124,543 | 130,593 | (238 | ) | 130,355 | ||||||||||||||||||||||||||
Other non-operating income (expense) | (40,988 | ) | (1,476 | ) | (42,464 | ) | (4,879 | ) | 365 | (4,514 | ) | (121,714 | ) | 184 | (121,530 | ) | ||||||||||||||||||||||
Income (Loss) Before Income Tax Provision | 92,157 | (1,591 | ) | 90,566 | 119,769 | 260 | 120,029 | 8,879 | (54 | ) | 8,825 | |||||||||||||||||||||||||||
Income tax provision | 27,647 | — | 27,647 | 25,090 | — | 25,090 | 3,804 | — | 3,804 | |||||||||||||||||||||||||||||
Net Income (Loss) | 64,510 | (1,591 | ) | 62,919 | 94,679 | 260 | 94,939 | 5,075 | (54 | ) | 5,021 | |||||||||||||||||||||||||||
Less: Net income (loss) attributable | ||||||||||||||||||||||||||||||||||||||
to noncontrolling interests | 191 | (1,591 | ) | (1,400 | ) | 131 | 260 | 391 | 178 | (54 | ) | 124 | ||||||||||||||||||||||||||
Net Income Attributable to Legg Mason, Inc. | $ | 64,319 | $ | — | $ | 64,319 | $ | 94,548 | $ | — | $ | 94,548 | $ | 4,897 | $ | — | $ | 4,897 | ||||||||||||||||||||
Six Months Ended | ||||||||||||||||||||||||||||||||||||||
September 2015 | September 2014 | |||||||||||||||||||||||||||||||||||||
Balance Before Consolidation of Consolidated Investment Vehicles | Consolidated Investment Vehicles | Consolidated Totals | Balance Before Consolidation of Consolidated Investment Vehicles | Consolidated Investment Vehicles | Consolidated Totals | |||||||||||||||||||||||||||||||||
Total operating revenues | $ | 1,381,903 | $ | (167 | ) | $ | 1,381,736 | $ | 1,398,143 | $ | (367 | ) | $ | 1,397,776 | ||||||||||||||||||||||||
Total operating expenses | 1,124,110 | 53 | 1,124,163 | 1,147,801 | 74 | 1,147,875 | ||||||||||||||||||||||||||||||||
Operating Income (Loss) | 257,793 | (220 | ) | 257,573 | 250,342 | (441 | ) | 249,901 | ||||||||||||||||||||||||||||||
Other non-operating income (expense) | (45,867 | ) | (1,111 | ) | (46,978 | ) | (128,530 | ) | 1,722 | (126,808 | ) | |||||||||||||||||||||||||||
Income (Loss) Before Income Tax Provision | 211,926 | (1,331 | ) | 210,595 | 121,812 | 1,281 | 123,093 | |||||||||||||||||||||||||||||||
Income tax provision | 52,737 | — | 52,737 | 44,460 | — | 44,460 | ||||||||||||||||||||||||||||||||
Net Income (Loss) | 159,189 | (1,331 | ) | 157,858 | 77,352 | 1,281 | 78,633 | |||||||||||||||||||||||||||||||
Less: Net income (loss) attributable | ||||||||||||||||||||||||||||||||||||||
to noncontrolling interests | 322 | (1,331 | ) | (1,009 | ) | 267 | 1,281 | 1,548 | ||||||||||||||||||||||||||||||
Net Income Attributable to Legg Mason, Inc. | $ | 158,867 | $ | — | $ | 158,867 | $ | 77,085 | $ | — | $ | 77,085 |
LEGG MASON, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
SUPPLEMENTAL DATA | ||||||||||||||||||||||
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO LEGG MASON, INC. | ||||||||||||||||||||||
TO ADJUSTED INCOME (1) | ||||||||||||||||||||||
(Amounts in thousands, except per share amounts) | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Quarters Ended | Six Months Ended | |||||||||||||||||||||
September | June | September | September | September | ||||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Net Income Attributable to Legg Mason, Inc. | $ | 64,319 | $ | 94,548 | $ | 4,897 | $ | 158,867 | $ | 77,085 | ||||||||||||
Plus: | ||||||||||||||||||||||
Amortization of intangible assets | 670 | 657 | 464 | 1,327 | 1,359 | |||||||||||||||||
Deferred tax amortization benefit on intangible assets | 34,116 | 34,121 | 35,225 | 68,237 | 69,369 | |||||||||||||||||
Adjusted Income | $ | 99,105 | $ | 129,326 | $ | 40,586 | $ | 228,431 | $ | 147,813 | ||||||||||||
Net Income per Diluted Share Attributable to Legg Mason, Inc. Shareholders | $ | 0.58 | $ | 0.84 | $ | 0.04 | $ | 1.42 | $ | 0.66 | ||||||||||||
Plus: (2) | ||||||||||||||||||||||
Amortization of intangible assets | — | — | — | — | 0.01 | |||||||||||||||||
Deferred tax amortization benefit on intangible assets | 0.31 | 0.30 | 0.31 | 0.61 | 0.59 | |||||||||||||||||
Adjusted Income per Diluted Share | $ | 0.89 | $ | 1.14 | $ | 0.35 | $ | 2.03 | $ | 1.26 | ||||||||||||
(1) See explanations for "Use of Supplemental Non-GAAP Financial Information." | ||||||||||||||||||||||
(2) In calculating Adjusted Income per Diluted Share, we include the weighted-average of unvested restricted shares deemed to be participating securities and the earnings allocated to these participating securities. For purposes of this non-GAAP performance measure, earnings are allocated in the same ratio to participating securities and common shares. As a result, the inclusion of these participating securities and the earnings allocated thereto do not impact the per share amounts of the adjustments made to Net Income per Diluted Share Attributable to Legg Mason, Inc. Shareholders. |
LEGG MASON, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
SUPPLEMENTAL DATA | ||||||||||||||||||||||||
RECONCILIATION OF OPERATING MARGIN, AS ADJUSTED (1) | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Quarters Ended | Six Months Ended | |||||||||||||||||||||||
September | June | September | September | September | ||||||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Operating Revenues, GAAP basis | $ | 673,086 | $ | 708,650 | $ | 703,895 | $ | 1,381,736 | $ | 1,397,776 | ||||||||||||||
Plus (less): | ||||||||||||||||||||||||
Operating revenues eliminated upon | ||||||||||||||||||||||||
consolidation of investment vehicles | 82 | 85 | 184 | 167 | 367 | |||||||||||||||||||
Distribution and servicing expense excluding | ||||||||||||||||||||||||
consolidated investment vehicles | (138,920 | ) | (149,280 | ) | (155,090 | ) | (288,200 | ) | (303,791 | ) | ||||||||||||||
Operating Revenues, as Adjusted | $ | 534,248 | $ | 559,455 | $ | 548,989 | $ | 1,093,703 | $ | 1,094,352 | ||||||||||||||
Operating Income, GAAP basis | $ | 133,030 | $ | 124,543 | $ | 130,355 | $ | 257,573 | $ | 249,901 | ||||||||||||||
Plus (less): | ||||||||||||||||||||||||
Gains (losses) on deferred compensation | ||||||||||||||||||||||||
and seed investments, net | (5,499 | ) | 1,210 | (374 | ) | (4,289 | ) | 4,075 | ||||||||||||||||
Amortization of intangible assets | 670 | 657 | 464 | 1,327 | 1,359 | |||||||||||||||||||
Operating income of consolidated investment | ||||||||||||||||||||||||
vehicles, net | 115 | 105 | 238 | 220 | 441 | |||||||||||||||||||
Operating Income, as Adjusted | $ | 128,316 | $ | 126,515 | $ | 130,683 | $ | 254,831 | $ | 255,776 | ||||||||||||||
Operating Margin, GAAP basis | 19.8 | % | 17.6 | % | 18.5 | % | 18.6 | % | 17.9 | % | ||||||||||||||
Operating Margin, as Adjusted | 24.0 | 22.6 | 23.8 | 23.3 | 23.4 | |||||||||||||||||||
(1) See explanations for "Use of Supplemental Non-GAAP Financial Information." | ||||||||||||||||||||||||
LEGG MASON, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
(Amounts in billions) | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
Assets Under Management | |||||||||||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||||||
By asset class: | September 2015 | June 2015 | March 2015 | December 2014 | September 2014 | ||||||||||||||||||||||||
Equity | $ | 177.6 | $ | 197.3 | $ | 199.4 | $ | 198.7 | $ | 193.6 | |||||||||||||||||||
Fixed Income | 368.4 | 372.2 | 376.1 | 367.4 | 360.4 | ||||||||||||||||||||||||
Long-Term Assets | 546.0 | 569.5 | 575.5 | 566.1 | 554.0 | ||||||||||||||||||||||||
Liquidity | 126.1 | 129.7 | 127.2 | 143.0 | 153.8 | ||||||||||||||||||||||||
Total | $ | 672.1 | $ | 699.2 | $ | 702.7 | $ | 709.1 | $ | 707.8 | |||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
By asset class (average): | September 2015 | June 2015 | March 2015 | December 2014 | September 2014 | September 2015 | September 2014 | ||||||||||||||||||||||
Equity | $ | 189.6 | $ | 199.8 | $ | 198.3 | $ | 200.0 | $ | 194.6 | $ | 194.3 | $ | 191.4 | |||||||||||||||
Fixed Income | 370.8 | 375.8 | 373.2 | 365.8 | 364.1 | 373.5 | 363.4 | ||||||||||||||||||||||
Long-Term Assets | 560.4 | 575.6 | 571.5 | 565.8 | 558.7 | 567.8 | 554.8 | ||||||||||||||||||||||
Liquidity | 126.8 | 128.3 | 135.6 | 145.1 | 145.4 | 127.2 | 142.0 | ||||||||||||||||||||||
Total | $ | 687.2 | $ | 703.9 | $ | 707.1 | $ | 710.9 | $ | 704.1 | $ | 695.0 | $ | 696.8 | |||||||||||||||
Component Changes in Assets Under Management | |||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
September 2015 | June 2015 | March 2015 | December 2014 | September 2014 | September 2015 | September 2014 | |||||||||||||||||||||||
Beginning of period | $ | 699.2 | $ | 702.7 | $ | 709.1 | $ | 707.8 | $ | 704.3 | $ | 702.7 | $ | 701.8 | |||||||||||||||
Net client cash flows: | |||||||||||||||||||||||||||||
Equity | 0.1 | (1.3 | ) | (1.4 | ) | (1.1 | ) | 1.6 | (1.2 | ) | (0.2 | ) | |||||||||||||||||
Fixed Income | 3.0 | 2.6 | 7.6 | 9.9 | (0.9 | ) | 5.6 | 1.6 | |||||||||||||||||||||
Long-Term flows | 3.1 | 1.3 | 6.2 | 8.8 | 0.7 | 4.4 | 1.4 | ||||||||||||||||||||||
Liquidity | (3.0 | ) | 2.3 | (15.3 | ) | (10.6 | ) | 12.7 | (0.7 | ) | 3.7 | ||||||||||||||||||
Total net client cash flows | 0.1 | 3.6 | (9.1 | ) | (1.8 | ) | 13.4 | 3.7 | 5.1 | ||||||||||||||||||||
Market performance and other (1) | (22.6 | ) | (8.9 | ) | 9.0 | 9.5 | (2.5 | ) | (31.4 | ) | 1.7 | ||||||||||||||||||
Impact of foreign exchange | (4.6 | ) | 1.8 | (6.3 | ) | (6.4 | ) | (7.4 | ) | (2.9 | ) | (5.8 | ) | ||||||||||||||||
Acquisitions (Disposition), net | — | — | — | — | — | — | 5.0 | ||||||||||||||||||||||
End of period | $ | 672.1 | $ | 699.2 | $ | 702.7 | $ | 709.1 | $ | 707.8 | $ | 672.1 | $ | 707.8 | |||||||||||||||
Note: Due to effects of rounding, the sum of the quarterly results may differ immaterially from the year-to-date results. | |||||||||||||||||||||||||||||
(1) Includes $12.8 billion of certain client assets previously reported as Assets Under Management that have been reclassified as Assets Under Advisement for the six months ended September 2014. |
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