Baltimore-based Legg Mason Inc. LM reported a fall in its assets under management (AUM) as of May 31, 2017, compared with the prior month. Preliminary month-end AUM came in at $726.6 billion, slightly down from Apr 2017.May’s AUM displayed $0.1 billion equity inflows, alternative outflows of $0.2 billion and liquidity outflows of $7.5 billion. Fixed Income flows were stable in the reported month. However, positive foreign exchange impact of $0.3 billion was a favorable factor.Legg Mason’s equity AUM at the end of May 2017 decreased slightly from the prior-month figure to $180.5 billion. Alternative assets were down 1.3% to $67.1 billion. However, fixed income AUM inched up 1% from the previous month to $400.3 billion.Rise in fixed income AUM, partially offset by lower Alternative and equity AUM resulted in long-term AUM of $647.9 billion. The figure marked marginal increase from the prior month. However, liquid assets, which are convertible into cash, declined 8.7% to $78.7 billion.Competitive LandscapeAmong other investment managers, Franklin Resources Inc. BEN announced preliminary AUM by its subsidiaries of $744.7 billion for May 2017. Results exhibited marginal rise from $741.0 billion as of Apr 30, 2017. Moreover, the figure advanced 1% from the prior-year quarter.Invesco Ltd. IVZ declared an increase in preliminary month-end AUM for May 2017. The company’s AUM came in at $859 billion, up 2.1% from $841.4 billion recorded in the previous month. The rise was supported by favorable market returns, foreign exchange, elevated Money Market AUM, inflows into PowerShares QQQs and net long-term inflows. Further, FX increased May AUM by $0.9 billion.Our ViewpointLegg Mason has the potential to outperform its peers over the long run, backed by its diversified product mix, positive foreign exchange fluctuations and leverage to the changing market demography. However, absence of consistent growth in equity markets remains a headwind.Currently, Legg Mason carries a Zacks Rank #4 (Sell). The company’s stock gained 9.0% over the last three months compared with 4.2% growth recorded by the Zacks categorized Investment Management industry.A better-ranked finance company is Lazard Ltd. LAZ carrying a Zacks Rank #2 (Buy). The company’s shares gained over 9% over the last six months. The Zacks Consensus Estimate for the stock climbed around 1% to $3.40, over the last 30 days, for 2017.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' 2017 IPO Watch ListBefore looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time. One has driven from 0 to a billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco PLC (IVZ): Free Stock Analysis Report Legg Mason, Inc. (LM): Free Stock Analysis Report Franklin Resources, Inc. (BEN): Free Stock Analysis Report Lazard Ltd. (LAZ): Free Stock Analysis Report To read this article on Zacks.com click here.