Legg Mason Inc. announced Thursday that its profits increased from a year earlier in its fiscal third quarter, which ended Dec. 31, but declined slightly from the previous quarter as assets managed by the Baltimore-based company fell.

Legg Mason reported net income of $44.9 million, or 28 cents a share, down 1.96% from the previous quarter but up from a $1.5 billion loss a year earlier. The global asset manager missed analyst estimates by three cents, according to Thomson Reuters.

Assets under management declined 3% to $681.6 billion from the previous quarter, despite strong market gains in the S&P 500 during the quarter.

Revenue rose 5% to $690 million.

Outflows increased to $33 billion from $8 billion in the previous quarter. Mark R. Fetting, the company’s chairman and chief executive officer, warned of the reversal Dec. 9 because of “some acceleration” of outflows from its bond funds.