UK investment manager Real Return is to take a 25% stake in fixed-income and currency specialist Avebury Asset Management, creating a boutique managing £575m (€828m) in institutional assets.

Terms of the deal have not been disclosed, but Stewart Newton, Real Return's founder and former chairman of Newton Investment Management, and Charles Richardson, previously chief investment officer of Newton, will join Howard Flight, a UK Member of Parliament, as non-executive directors of Avebury. Flight has been chairman of Avebury since its formation in 2000.