Legg Mason, which became a pure-play asset manager when it bought Citigroup's asset management operation last year, today said it would separate its mutual fund and retail businesses and reshuffle management.
In the restructuring, $868 billion asset manager Legg Mason will separate its mutual fund businesses from its retail advice businesses to create three different groups, each run by a senior executive of the firm: Global Managed Investments, International Asset Management, and U.S. Asset Management.
Global Managed Investments, which will be headed by Mark Fetting, will include Legg's mutual fund business, including Legg Mason Capital Management, and Royce & Associates. It will also include ClearBridge Advisors, the U.S. equities business run by Brian Posner which Legg acquired from Citigroup. Fetting joined Legg in 2000 from Prudential Financial.
Legg Mason will also divide its retail businesses into two groups: International and U.S. The international business, including Legg Mason International Equities and Legg Mason Canada, will be run from Baltimore by Timothy Scheve, 48, who is also the chief administrative officer of Legg Mason.
The U.S. business will be run by Peter Bain, a senior executive vice president who has been with the firm since 2000 and was one of the lead members of the team that acquired the Citigroup business. Bain previously ran Legg's U.S. wealth management business.
The new U.S. asset management business will include several brands: Barrett Associates, Bartlett & Co., Batterymarch Financial Management, Berkshire Asset Management, Bingham Legg Advisors, Brandywine Global Investment Management, Legg Mason Investment Counsel & Trust, Legg Mason Real Estate Investors, The Permal Group, Private Capital Management, and Western Asset Management.
Earlier this year, chief executive Raymond "Chip" Mason indicated that the firm would see cost savings from the Citi deal in June. Recently, however, Mason indicated that the cost savings would be more apparent in September.
In March, Legg Mason ended its internal succession race to replace Mason by appointing James Hirschmann president of the company. Hirschmann headed Legg subsidiary Western Asset Management.