Legg Mason Inc. (NYSE:LM) Q1 2020 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 05:00 pm ET


Legg Mason Inc. (NYSE:LM) Q1 2020 Earnings Conference Call - Final Transcript


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Welcome to the Legg Mason First Fiscal Quarter 2020 Earnings Call. My name is Brandon, and I'll be your operator for today's conference call. [Operator Instructions] Please note, this conference call is being recorded.

It is now my pleasure to introduce your host, Alan Magleby, Head of Investor Relations. Thank you. Mr. Magleby, you may begin.

Alan Magleby

Thank you, Brandon. On behalf of Legg Mason, I would like to welcome you to our conference call to discuss operating results for the fiscal 2020 first quarter ended June 30, 2019. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not statements of facts or guarantees of future performance and are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those discussed in the statements. For a discussion of these risks and uncertainties, please see Risk Factors and Management's Discussion and Analysis of Financial Condition and Results of Operations in the company's annual report on Form 10-K for the fiscal year ended March 31, 2019, and in the company's subsequent filings with the Securities and Exchange Commission.

During today's call, we may discuss non-GAAP financial information. Reconciliations of non-GAAP financial information to the comparable GAAP financial information can be found in the press release and in the presentation we issued this afternoon, which is available in the Investor Relations section of our website. The company undertakes no obligation to update the information contained in this presentation to reflect subsequently occurring events or circumstances. Today'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 A. Sullivan

Thanks, Al. Good evening, and as always, we welcome and appreciate your continued interest in Legg Mason. With me tonight is our CFO, Pete Nachtwey, as we review our performance for the first fiscal quarter of 2020. This quarter's solid operating results once again demonstrate the impact of the diversification of our business. We realized long-term net inflows of $1.1 billion, led by fixed income and alternative net flows across multiple geographies and channels, which more than offset equity outflows in the quarter. Our short-term investment performance improved as our manager's macro calls in fixed income began to play out, the leadership in equity markets broadened and quality-oriented investing was rewarded. As a result, our affiliates are seeing increased pipeline activity, particularly in equity and fixed income categories, where they have strong investment performance.

Western is seeing increased surges in credit from corporate clients looking to derisk there equity portfolios. ClearBridge has a strong pipeline in large cap, international and small cap, as well as growth income strategies. And Martin Currie is attracting good interest in their emerging market equities and long-term unconstrained