MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, August 26, 2010 How Will Legg Stand Up In Light of 12b-1 Reform? What could the SEC's proposed 12b-1 reforms mean for Legg Mason [see profile]? Yesterday Ticonderoga Securities analysts Warren Gardiner and Douglas Sipkin revealed that they had dropped their price target for the Baltimore-based mutual fund company from $26 per share to $24. (Legg Mason closed at $25.20 yesterday.) "Both Clearbridge and Legg Mason Capital have origins in the retail brokerage sales model. If there is a limit on how much they can collect to pay brokers, this may impact the appeal of these products in the eyes of retail brokers," Gardiner and Sipkin wrote. "In addition, Legg Mason may be forced to pay more to distributors out of its own pocket." "We believe it is too early to make assumptions," the duo added, noting that SEC's proposals are not final, "but it is worth noting that there is some potential risk to Legg Mason's retail model in its current form." Printed from: MFWire.com/story.asp?s=33266 Copyright 2010, InvestmentWires, Inc. All Rights Reserved |