Legg Mason Inc. (NYSE:LM) Q3 2015 Earnings Conference Call - Final Transcript

Jan 30, 2015 • 08:00 am ET


Legg Mason Inc. (NYSE:LM) Q3 2015 Earnings Conference Call - Final Transcript


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Welcome to the Legg Mason's Third Fiscal Quarter 2015 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator Instructions).

Please note that this teleconference is being recorded. It is now my pleasure to introduce your host, Alan Magleby, Head of Investor Relations and Corporate Communications.

Thank you, Mr. Magleby. You may begin.

Alan Magleby

Thank you. On behalf of Legg Mason I would like to welcome you to our conference call to discuss operating results for the fiscal 2015 third quarter ended December 31, 2014.

(Forward-Looking Cautionary Statements)

This morning's call will include remarks from Mr. Joe Sullivan, Legg Mason's Chairman and CEO; and Mr. Pete Nachtwey, Legg Mason's CFO who will discuss our financial results. In addition, following a review of the company's quarter, we will then open the call to Q&A.

Now I would like to turn this call over to Mr. Joe Sullivan. Joe?

Joseph Sullivan

Thank you, Alan, and good morning everyone. As always, I appreciate your interest in Legg Mason and welcome you to our third quarter fiscal 2015 earnings call. We are pleased to announce another quarter of financial and strategic momentum. As we enter this new calendar year, we intend to build on our progress and capitalize on the investment performance by our affiliates, which remained strong on a broader set of strategies and products. We enjoy a diverse line of high performing investment offerings to address a global marketplace that while characterized by dramatic

Joseph Sullivan

differences across many economies are nevertheless very interconnected and share similar investment challenges. Global events impacting investors range from a very turbulent geopolitical environment to volatility in the currency and energy markets and certainly persistently low interest rates, which have created a bit of a desperation for yield across the globe. But it is precisely this volatility that our active managers believe offer significant opportunity for long term investors to achieve substantial returns.

This morning Pete will take you through the quarter from a financial performance standpoint while I would like to focus you on what I believe to be the five key takeaways for Legg Mason today. First, and most importantly the investment performance that we've delivered for clients remains strong overall. Second, we've made significant progress in expanding and evolving our product line up to address the real and changing needs of global investors though we are still in the very early innings of commercializing the opportunities that we have acquired through QS and Martin Currie.

Third, we have made substantial progress with respect to chronic net flow challenges and we're very pleased to have been in positive long-term net flows for three consecutive quarters. Fourth, we have maintained significant financial strength and flexibility through strategic debt re-financings while we continue to generate and retain a significant amount of cash.

And finally we remain committed to investing in our business where and when we see opportunity while growing our dividend and remaining committed to share repurchases.