NEWS that Martin Currie performed well in its latest financial year will be welcomed by all those concerned about the prospects for the fund management sector in Scotland.

The Edinburgh-based business has kept a relatively low profile since it was acquired by American giant Legg Mason in 2014.

However after growing funds under management from £9.3bn to £14.5bn in the year to last March the group has become an increasingly significant player in an industry which is undergoing big changes amid the globalisation process.

It employs 160 people in Edinburgh and provides valuable work for the financial services supply chain.

As Martin Currie managed around £5.8bn when Legg Mason took charge, the firm may have reasons to believe it was right to surrender the independence it had maintained for 133 years.Assets under management halved in the seven years before the deal.

Directors say Legg Mason has brought distribution muscle while leaving Martin Currie to follow an independent investment strategy.

Martin Currie’s Edinburgh office provides Legg Mason with expertise in areas such as emerging markets, in the process helping burnish Edinburgh’s credentials as a global centre.

The company has been winning mandates helped by strong performances by funds focused on China and Japan.

While it is owned by a giant, Martin Currie’s commitment to active management in an age of index tracking helps make the case for boutiques.