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

Jan 30, 2015 • 08:00 am ET

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

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Presentation
Executive
Peter Hamilton Nachtwey

and balanced approach to capital deployment. In the upper left, you can see that we've steadily reduced our share count by 50 million shares or 31% since March of 2010. In the upper right we have highlighted the change in our quarterly dividend over that same time frame. We now have five straight years of increased annual dividends, representing over a fourfold increased since 2010.

On the bottom left you can see our cash position which stands at $665 million as of December 31st, up slightly from September despite the acquisition of Martin Currie in fiscal Q3. Finally on the bottom right we highlight our current seed investment of $374 million across a diversified portfolio by asset class.

In summary this was a solid quarter for Legg Mason and as always we've complemented our growth with a capital deployment strategy that highlights consistent dividends and share repurchases along with significant investments in growth initiatives, both organically and through acquisitions. So thanks for your time and your interest in Legg Mason and now I will turn it back to Joe.

Executive
Joseph Sullivan

Thank you, Pete. Building momentum and positioning Legg Mason for growth have been our themes for this fiscal year and I think it's quite clear that we are making good progress on both. Continued growth in global distribution, gross and net sales reflect a strong line-up of highly competitive products and strong sales execution.

With nearly 90% of the hiring associated with our distribution growth plans complete we will expand client coverage by approximately 50%, which will be a key driver of future growth and progress. We are excited about the expanded set of capabilities that we've acquired in QS and Martin Currie.

There remains a significant opportunity within fixed income for active global managers and with our deep expertise, scale, a strong breadth of products and compelling investment

Executive
Joseph Sullivan

performances we are well positioned to gain market share and grow. We also enjoy broad capabilities and strong investment performance across many of our equity products and see opportunities to continue to win in active equities across the globe. As I said upfront even as we continue to invest in organic growth and M&A and we will continue to actively return capital to shareholders through dividends and share repurchases. And with that we are happy to take your questions.