Legg Mason had net income of $47.9 million, or 30 cents per share, in its fiscal first quarter ended June 30. That's down from $50.1 million, or 35 cents per share, in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S had forecast a profit of 31 cents per share.

The equity side represented a bright spot for the Baltimore firm.

"We are pleased to announce our first quarter of equity inflows in over four years, including the largest closed-end fund capital raise in the industry since 2007," said CEO Mark Fetting in a press release.

"In fixed income, we are hard at work on the longer term process of turning flows to positive following sustained improved investment performance," he said.

Legg recorded equity inflows of $700 million, fixed income outflows of $9.4 billion and liquidity outflows of $14.4 billion during the period.

Total AUM dropped to $645.4 billion at the end of June from $684.5 billion due to net outflows of $23.1 billion and market declines of $16.0 billion. The firm saw Long-term asset net outflows of $8.7 billion. The flow numbers "continue to trend favorably," company officials said.

Fetting also provided an update on the streamlining the company had announced in May.

"We are making progress on our plans to transfer certain support functions to our affiliates and we are on track to meet our targets," he said.

"Even as we streamline our business model, we continue to look at growth opportunities, and our affiliates continue to add talent, including an experienced professional to service sovereign wealth clients at Permal. We are actively evaluating the addition of investment capabilities," he added.  

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