Legg Mason officials said an error caused them to report second quarter net flows that were off by $2.5 billion.

A $2.5 Bil Mistake
Components of AUM - 6/30/04	Corrected ($ Bil)	Previously Reported ($ Bil)
Beginning of period	286.4	286.4
Net client cash flows	10.1	7.6
Market performance	(0.8)	1.7
End of period	295.7	295.7
Source: Legg Mason

Second quarter net flows for the Baltimore money manager were actually $2.5 billion higher than reported, and performance on the assets $2.5 billion lower than reported.

Officials reported in late July that second quarter net flows were $7.6 billion and market appreciation $1.7 billion. The corrected results are $10.1 billion in net flows and $0.8 in market depreciation. Total assets under management, $295.7 billion, were unchanged.

Officials placed the blame on a misclassification in their institutional asset management unit. 

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