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Rating:Rising Interest Rates Could  Help Legg Mason  Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, August 21, 2013

Rising Interest Rates Could Help Legg Mason

News summary by MFWire's editors

Seeking Alpha's Mike Williams writes that a "huge catalyst" for Legg Mason's [profile] earnings will be rising interest rates. The annual money fund fee waivers are taking bps off average advisory fees. If rates normalize, the waiver would decrease and the new money would go to the bottom line. Williams says the absence of the waiver would add $0.80 in pre-tax net income to earnings per share. Not only that, Wiliams writes, but rising rates should give management some wiggle room to raise fees on fixed income assets.

The firm also plans to continuing buying back shares, Williams writes, buying back $80 to $90 million worth of shares per quarter long-term. The firm bought back 2.6 million shares for $90 million in the fiscal first quarter of 2014, Williams writes.

To read more, click here.  

Edited by: Casey Quinlan

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