Legg Mason has appointed Mark R. Fetting, 53, as the firm’s president and CEO, with Legg Mason co-founder and Chairman Raymond “Chip” Mason serving as non-executive chairman. Fetting joined Legg Mason in 2000 and has been responsible for the firm’s worldwide mutual fund and managed account businesses. The firm now has some $1 trillion under management.
“Of the many qualified candidates we met, Mark is uniquely qualified to further capture the power of the Legg Mason multi-manager business model and to drive the growth of the company on a global scale,” says Harold L. Adams, who chaired the board’s search committee.
Before joining Legg Mason, Fetting was head of retirement services for Prudential Financial Group. He also has worked for Citibank, Greenwich Associates and T. Rowe Price.
In the third quarter ending December 31, Legg Mason had revenues of $1.19 billion, up 5 percent from $1.13 billion in the third quarter of fiscal 2007. Net income for the quarter was $154.6 million, representing an 11 percent year-over-year decline resulting from a charge of roughly $23 million related to support for asset backed commercial paper (or ABCP) investments held by certain liquidity funds. AUM increased 6 percent to $998.5 billion from the year-ago quarter but fell 1 percent from the previous quarter.
For the past nine months, revenues grew 11 percent to $3.6 billion, while net income expanded 10 percent to $523.1 million.
In the latest quarter, net client cash outflows totaled $9.1 billion and market depreciation $4.0 billion. Equity outflows were $10.6 billion and liquidity outflows were $0.5 billion, while fixed income recorded inflows of $2.0 billion for the quarter, the company says.