BOSTON, March 5 Legg Mason Inc may trim
the number of funds it offers and offices it operates, but does
not expect major cost-cutting like that begun in 2010, the asset
manager's chief financial officer said on Tuesday.
The firm will provide more details of its continuing
business review in coming months, CFO Pete Nachtwey said at a
financial conference in Boston that was webcast.
In 2010 Legg Mason began a round of cost-cutting that saved
about $140 million annually and reduced the number of employees
working for its central corporate organization to 1,000 from a
peak of 1,800.
The latest reviews come just after Joseph Sullivan was named
Legg Mason's permanent chief executive in February. The cuts
will not reach the scale of prior expense reductions but will be
what Nachtwey called "singles and doubles," rather than home
For instance, the company recently reduced office space to
save $10 million a year, he said. Reviews of office space will
continue, he said. The Baltimore-based company currently has 32
He also said the firm is reviewing the total number of funds
its sells through affiliates like its Western Asset Management
bond unit and its ClearBridge Advisors equity division.
Combined, Legg Mason affiliates offer more than 400 funds, he
said, and some may not have the scale to continue and may be
merged into other funds or shut down.
Overall, the firm is looking to "decrease the complexity of
our fund complex," Nachtwey said.
Legg Mason will provide more details at investor
presentations it plans to hold in June, Nachtwey said.
The company's shares were up 3 percent at $29.25 in midday
Legg Mason reported a loss of $454 million and continued
outflows of customer cash in the quarter ended Dec. 31.