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Legg Mason assets under management up $24B for quarter

Legg Mason, Inc., the Baltimore-based asset manager, said in a statement Monday that on a preliminary basis, its assets under management as of Dec. 31, 2013, were $680 billion, up from $656 billion at the end of the third quarter and $649 billion at the end of 2012.

Legg MasonIt attributed the increase for the quarter to $14 billion in market appreciation and $10 billion of inflows. The third quarter of last year was a strong quarter for stock markets.

Legg Mason said it was on track to beat current analysts’ estimates when it announces its quarterly results.

Its statement noted these highlights for the quarter:

• A higher expected effective tax rate of 36 percent, compared with 18 percent in the second fiscal quarter, as last quarter’s results included a United Kingdom tax benefit of $19 million.

• Severance expenses for closing down or reorganizing of certain businesses of $12 million, up from $9.5 million in the previous quarters.

• Better-than-expected performance by Fauchier Partners, the London-based fund firm that it bought last year.

• An increase in performance fees to approximately $48 to $52 million compared with $17 million in the prior quarter.