Legg Mason’s Distribution Business Today
- $252B in AUM globally
- Over 200 client-facing team members around the world
- Gross FY 2014 sales of $65 billion, up 15% from FY 2013
- Over 16 distribution offices in six regions
- Serving more than 100,000 intermediary clients globally
Four core themes, all around understanding and meeting client needs, guide the management of Legg Mason’s distribution platform:
- Client solutions orientation: Drives how we think about product development, how we cover the intermediary channel and how we help intermediaries serve investors.
- Data-based decisions: Analysis of client, market and demographic data informs our approach to client segmentation and underpins our coverage model for serving distribution partners and clients.
- Broad global footprint: Investment and client service teams around the world allow us to leverage and syndicate the best ideas and practices, regardless of their origin.
- Active partnership with Affiliate managers: We collaborate with our asset managers throughout the sales process with transparency and accountability and utilize their expertise to most effectively serve our clients.
Legg Mason’s survey is an annual vehicle in which we connect with investors in all of the regions in which we operate. Our 2014 survey interviews over 4,000 affluent investors from more than 20 countries to find out their views on current asset allocations versus their goals, and their perceptions of opportunities across asset classes and geographies.
The findings from the survey provide valuable perspectives as we think about product development in the context of solving the investment challenges investors face. We use the data we collect to educate our sales teams and our distribution partners, and to build our brand with investors around the globe.
Investing in Innovation for the Future
Industry research suggests that a new breed of asset manager will emerge by 2020, with highly streamlined platforms, targeted solutions and stronger brands. Connecting with clients in a variety of ways to solve their investment needs will be a continually evolving process.
At Legg Mason, we believe the smart players will find new, innovative ways to harness customer and related data available to better anticipate and serve our clients. We will continue to evolve the traditional model to achieve greater efficiency and effectiveness in distribution.
We want to deepen and expand client coverage and improve the customer experience and salesforce effectiveness through technology, marketing and training.
In the fiscal year, Legg Mason introduced a new solutions-oriented, capital markets-based selling approach and a modified sales compensation plan to reinforce it.
We’ve segmented the business needs of advisors that we believe represent our opportunity set, including those we work with today as well as those whom we have identified as having great potential for us.
We drew inspiration from the meaningful success we’ve had with our innovative cross channel team, which we launched in 2011. As a result, our conviction is high that multiple coverage models can lift the productivity of all sales teams and create a more powerful distribution system.
Starting in fiscal year 2015, we are meaningfully expanding client-facing teams, with a particular focus on channels in which we have both established a strong track record and see meaningful growth opportunities. These investments are being amplified.