Martin Currie cuts staff on market woes

Published on Tuesday 16 September 2008 20:52

FEARS that widescale job losses were on their way to Edinburgh in the wake of "Meltdown Monday" intensified yesterday as one of the capital's most respected fund management boutiques announced cuts.

Investment company Martin Currie will become smaller as a result of the worsening of the global financial crisis this week.

The so-called "big boutique" group announced it was axeing 19 jobs yesterday, citing "continued deterioration" in global financial market conditions.

The company, which manages investments in listed companies worldwide, reported a downturn in customer activity as the economic crisis drove world markets further into the red.

Willie Watt, Martin Currie chief executive, said: "2008 is already proving to be tougher than last year and when you get market corrections – like those we have experienced recently – there is clearly a risk that buyer behaviour changes."

The cuts bring the firm's workforce down to 253 and will take effect by the end of the year. In April, Martin Currie announced record funds under management of 15.7 billion.

Scott White, director of communications for Martin Currie, said: "While we continue to position the firm for growth, current buyer behaviour and market action means that this will take longer to come through than originally planned. It is against this backdrop that this difficult decision has been taken and it is a prudent reaction to the worsening financial environment."

Although Martin Currie has offices in Edinburgh, London, Melbourne, New York and Shanghai, the job losses mainly affect the Scottish head office.

The jobs losses at Martin Currie may be the thin end of the wedge for jobs in Edinburgh's asset management industry, as insiders suggest more jobs are under threat.

A spokesman for Aberdeen Asset Management said the group had announced a 57m cost-cutting exercise in June, with the understanding jobs would be cut as funds across the group's global offices would be affected.

Baillie Gifford, another Edinburgh-based boutique, with assets under management exceeding 52bn, refused to comment.

A spokeswoman for Henderson Global Investors, which is based in London but has two fund managers and a technical team in Edinburgh, said there were no plans for redundancies as far as she knew.

A spokeswoman for Aegon Asset Management said: "We have no immediate plans for any similar move."