Franklin Templeton Investments has bought Rensburg Fund Management for £45m from Investec.
The transaction is subject to regulatory approval and is expected to complete early next year.
Rensburg Fund management, which is based in Leeds, has around £880m in UK equities.
Investec bought Rensburg Sheppards in a £412m deal which completed in June this year. In July, Investec confirmed it was considering selling RFM after receiving a number of enquiries about the firm.
Franklin Templeton Investments managing director Europe Jamie Hammond says: “We are best known in the UK for our global and specialist funds and we are looking to develop core UK equity products, which are an important asset class for UK investors.
“Rensburg Fund Management brings a very strong track record and reputation and I am confident this new partnership will strengthen Franklin Templeton’s position in the UK market as we introduce Rensburg Fund Management’s products to our key partners and clients, such as large cross-border banks and institutions. This is an exciting and important development, which underscores Franklin Templeton’s commitment to further enhancing its local presence in the UK.”
Franklin Templeton Investments says it is considering merging away its £5m Templeton UK equity fund into the Rensburg range.
The Templeton fund has lost 23.8 per cent over three years, compared with a sector average loss of 1.6 per cent and a FTSE All Share index gain of 2.2 per cent.