Legg Mason Inc., the Baltimore-based money manager seeking to reverse 15 straight quarters of redemptions, said fiscal first-quarter profit rose 25 percent driven by rising assets in its stock and bond funds.
Mark Fetting , chief executive officer of Legg Mason Inc. , has disappointed the board of directors with the disclosure of costs that have delayed his goal of lifting profitability, said two people with knowledge of the matter.
Legg Mason Inc. fell the most in 10 months in New York trading after Chief Executive Officer Mark Fetting said costs tied to its Western Asset Management bond unit will rise by $74 million this fiscal year.
Legg Mason Inc., the Baltimore-based money manager with 17 straight quarters of redemptions, said fiscal third-quarter profit declined 54 percent as assets fell, lowering fees for managing investors’ money.
Stock pickers in the U.S. have suffered half a trillion dollars in withdrawals since they started losing ground to index-tracking funds five years ago. Now, active bond-fund managers are beginning to feel the heat.
Western Asset Management Co.’s main fund is rebounding after trailing rivals in 2007 and 2008, beating similar strategies from BlackRock Inc. and Pacific Investment Management Co. for the third straight year. The bond manager’s next challenge is to reverse withdrawals.