Shares of asset management firm Legg Mason (LM) plunged 18% Tuesday after the company reported a quarterly loss much larger than a year ago.

In addition, the money manager slashed its quarterly dividend 88% to 3 cents a share, and investors weren’t pleased.

Legg Mason reported a net loss of $325.1 million, or $2.29 per share, for its fiscal fourth quarter ended March 31, versus a loss of $255.5 million, or $1.81 per share, in the year-ago period.

Analysts had predicted the Baltimore-based company would lose $2.33 per share. Revenues fell 42% to $617.2 million, compared with the average analysts’ forecast of $611.5 million.

Much of its losses were attributed to its efforts to rid itself of toxic assets. 

In early March, Legg Mason sold $1.8 billion worth of structured investment vehicles from its money market funds. In its earnings statement Tuesday, Legg Mason said the sale resulted in losses totaling $367.4 million after taxes and operating expenses, or $2.59 per share.

One of the largest publicly traded U.S. money managers, Legg Mason had no choice but to sell the assets for 25 cents on the dollar.

The company said assets under management declined by 9% during the quarter, falling to $632.4 billion on March 31 from $698.2 billion on Dec. 31, primarily due to net outflows of $43.5 billion. 

Like other asset managers, Legg Mason has seen sharp outflows as markets declined and on concerns over the health of its money market funds. The outflows were lower than the $77 billion in outflows Legg reported in its December quarter.

Legg Mason shares closed at $22.53 on Monday, down nearly two-thirds from their value a year ago when they closed at $64.26 on May 5, 2008. But the shares have recovered from a low of $10.37 on March 9 after the structured investment vehicle sales.