Legg Mason May Look to Cut Office Space, Some Mutual Fund Offerings (LM)
Pete Nachtewy, chief financial officer of asset management firm Legg Mason, Inc. (LM), said on Tuesday that the company may trim expenses by cutting the number of funds it offers and offices it operates. However, the cuts should not be as drastic as previous cost cutting plans.
At a financial conference in Boston, Nachtewy said planned cuts it will not be like the 2010 cost-cutting measures that helped save about $140 million annually. Rather, smaller cuts like reducing office space and the number of funds it offers will be the main focus.
Legg Mason has already enacted plans to reduced office space to save about $10 million a year, however, more reductions may be seen in the future. The company currently has 32 offices worldwide.
Furthermore, Nachtewy said that the 400 funds that Legg Mason and its affiliates offer do not have the scale to continue at the current level. The company will review the funds and attempt to merger them or shut them down altogether.
Legg Mason will provide further details about its expenses at an investor presentation in June.
Legg Mason shares were up 84 cents, or +2.88%, during Tuesday trading. The stock is up about +7% over the past twelve months.
The Bottom Line
Shares of Legg Mason (LM) have a dividend yield of 1.51% based on Tuesday’s intraday trading price of $29.21 and the company’s annualized dividend payout of 44 cents per share.
Legg Mason, Inc. (LM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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