THE Martin Currie asset management group has said its financial performance improved significantly in the latest financial year leaving the business well placed for growth with Brexit expected to have limited impact on its operations.

Edinburgh-based Martin Currie said it increased assets under management by more than 50 per cent in the year to 31 March 2017 to £14.5 billion from £9.3bn.

Revenues increased by 21% to £55m helping the US-owned group achieve a £0.9m profit for the year. It is understood the group lost around £6m in the preceding period.

The growth in assets under management could have a bigger impact on revenues in the current year.

In the accounts for the group’s UK subsidiary, Martin Currie Investment Management, directors noted: “During the next financial year we would expect to see the full year impact of the AUM growth and any subsequent AUM increases further improving the group’s financial performance.”

The accounts highlight the success of the Australian operation that Martin Currie established in 2008.

“The growth in AUM was mainly as a result of positive net inflows of over £4bn, particularly into the Martin Currie Australian equity business,” wrote directors.

The Australian operation reports to Martin Currie’s chief executive Willie Watt, who is based in Edinburgh.

Chief financial officer Ralph Campbell said the Edinburgh operations have been reaping the benefits of being part of the giant Legg Mason operation.

Legg Mason bought Martin Currie in 2014.

The deal involved Martin Currie losing its independence after 133 years in business.

Mr Campbell noted that assets under management had more than doubled since the takeover.

He said the growth was largely driven by Legg Mason’s global distribution capability. Around 90% of the growth has been in overseas markets. Legg Mason has provided seed capital for Martin Currie to develop new products.

The Edinburgh operation provides the core of what is seen as Legg Mason’s flagship international equities offering. The investment teams in Edinburgh are largely focused on overseas equities with key strengths in Asia and emerging markets.

Legg Mason leaves the asset management firms it owns free to make their own investment decisions.

Martin Currie has stuck to its active approach to investment although huge sums are being shifted into passive tracker funds around the world.

Mr Campbell said this has helped Martin Currie to deliver a strong investment performance and to secure a range of strategically significant mandate wins. He cited US pension plans and wealth management firms and global life company funds.

In January Legg Mason noted Martin Currie’s strong investment performance across multiple strategies.

In the MCIM accounts directors said of Brexit: “In the short term we consider the direct implications for Martin Currie Group are limited.”

A spokesperson said: “Legg Mason feels well positioned with its existing Irish and UK fund range and established Irish management company.”

Martin Currie Investment Management made an operating loss of £10.2m in the year to March 31, net of £2.9m exceptional expenses for a cost reduction programme. It lost £8.2m in the preceding year.

The emoluments of the highest paid director increased to £678,000, from £478,000.

The accounts do not cover all UK activity. Mr Campbell said most of the costs of the group are accounted for in MCIM.

Martin Currie group employs around 160 people in Edinburgh and 190 in total.

It managed £6.1bn funds when Mr Watt took charge in 2001, after running private equity giant 3i’s Scottish business.