#nyse:lm

[managermint]

InvestorPlace: Legg Mason Earnings: LM Stock Unmoved on Mixed Q4 Results Legg Mason (NYSE:LM) reported its quarterly earnings figures after the close of the market today, bringing in a profit that surpassed the Wall Street consensus estimate, yet its revenue total was below the mark for the three-month period–LM stock remained unchanged late Monday afternoon.

[simplywallst]

Legg Mason: The Brexit Impact

Legg mason [NYSE:LM], the Baltimore-based asset management company, is one of the several organizations in the US which are substantially affected by the turmoil caused by the UK’s decision to exit the European Union (EU). Shares are down nearly 15% since Friday, the company was also included in the list of 22-companies, issued by JP Morgan, set to gain the most if the UK stayed in the EU.

Double whammy

The markets across the globe have turned red due to the increased uncertainty on all fronts following the result of the UK’s historic EU-referendum. Companies such as LM, which generate the lion’s share of revenues from managing investment in equity, and other liquid assets, turn out be one of the worst affected due to an economic event like ‘Brexit’. 

Learn more about Legg Mason

During such an economic conundrum, the flight of capital from risky assets and also fixed income products such as sovereign and corporate bonds – due to the unclarity on the economic repercussions in the long-term – result in substantial losses for asset managers on two fronts. 

First, underperforming assets result in lower commission on profits, and second, like a negative feedback loop, client withdraw funds due to rise in uncertainty which cuts the management fees.

In the line of fire

Apart from the spill over effect, LM has been caught in the line of fire due to its substantial asset holdings in the UK – as of March 2016, the company held almost 18% of its total assets in the UK. It remains to be seen how the UK would disentangle itself from the EU, but what also have investors worried are the possibilities of such an event in other member-countries, mainly France and Spain.

Legg mason has been a strong dividend player over the last five years, but the road ahead seems to have too many obstacles for the asset management firm with $670 billion assets under management, serving institutional and individual clients across the globe.

Take a look at LM’s 10 years Dividend-history

Potential investors considering companies such as LM—with significant exposure to the UK—need not jump the gun by investing right now. A good idea would be to wait until the terms of the UK’s EU-exit are clear.