US based asset manager Franklin Templeton acquires Rensburg Sheppards’ fund management subsidiary

Franklin Templeton, the US based asset manager has acquired a fund management subsidiary of Rensburg Sheppards. Earlier this year, Rensburg was acquired by Investec earlier this year. The firm viewed the Leeds-based unit trust business as non-core. The US firm gains from the investment a reliable UK equity business, a move crucial in its UK operations.

Rensburg boasts a five-strong team of equity managers namely Mark Hall, Colin Morton, Paul Spencer, Stuart Sharp and Richard Bullas. However, Rensburg’s second biggest fund, Hall’s UK Select Growth trust has not been performing well in recent months. The fund manager experienced a lull recently, but has shown an impressive strong long-term track record. Spencer’s £324 million Mid-Cap Growth fund has fared better.

However, the lull has not been unique to the firm alone, it takes after a period of declining performance for in-house Franklin Templeton UK equity fund under the management of Martin Cobb. But regardless, Franklin Templeton has reiterated it will be retaining Martin Cobb, and will run his fund from Toronto, Canada. Other than that, the deals will also not affect the Rensburg team, as it will stay in Leeds.

The fund range will however take a new name as Investec retains the right to the Rensburg brand. According to Franklin Templeton, it is important to maintain the local expertise in Leeds rather than include it into its huge US operation.  Franklin Templeton is to pay some £45 million for the business which has some £880 million of assets.

Alex Brotherston, Rensburg Fund Management’s chief executive said the fund management team was contented with the transaction. The management and investment team of Rensburg Fund Management have been fully involved in discussion from the outset and are delighted with the company’s acquisition by Franklin Templeton, he added. Importantly, this transaction ensures complete continuity for clients in terms of investment team and process, said Brotherston.

Franklin Templeton Investments is a global investment manager. At the core of its business are multiple world-class investment management groups – Franklin, Templeton and Mutual Series – each operating independently and offering their distinct perspectives to financial advisors and their clients.

This multiple-manager structure allows Franklin Templeton to offer exceptional, specialized expertise across key asset classes and investment styles, supported by a single global platform. Combined, they offer investors the opportunity for true diversification.

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