Legg Mason posts first-ever loss on charge

BOSTON (Reuters) - U.S. money manager Legg Mason Inc (LM.N: Quote, Profile, Research) posted its first-ever quarterly loss on Tuesday as it took a big charge related to a bail-out of money market funds exposed to risky securities, and the loss was wider than expected.

Legg Mason, the second-largest publicly traded U.S. asset manager and home to star stock picker Bill Miller, also said assets under management fell in the quarter due to large outflows and market depreciation.

The company posted a fourth-quarter net loss of $255.5 million, or $1.81 a share, for the fiscal fourth quarter ended March 31, compared with net income of $172.5 million, or $1.19 a share, in the same quarter of last year.

Analysts' average forecast was a loss of 84 cents a share, according to Reuters Estimates.

Legg took a charge of $291 million, or $2.06 a share, related to bailing out the money market funds.

"Our actions on behalf of the money market funds have been dilutive to our earnings for two consecutive quarters, but we are resolute in our view that these have been prudent and proper actions to take," Mark Fetting, Legg Mason's president and chief executive officer, said in a statement.

Fetting was appointed CEO in January.

The company also took a charge of $94.8 million, or 66 cents a share, for a write-down of some "acquired management contracts."

Assets under management, the key driver of revenue and profit at money managers, fell to $950.1 billion at end-March from $968.5 billion a year earlier and $998.5 billion at end-December.