Hermes sells £250 million stake to US rival as BT switches

Fund manager Hermes changed hands on Friday after BT’s pension scheme sold most of its stake to Pittsburgh-based Federated Investors for £250 million.

US fund manager Federated will take 60% of the £33-billion asset manager, cutting the BT scheme’s stake to 30% from 100%.

Hermes management will own 10%. A scheme has been put in place for Federated to buy out the rest of the BT stake over the next six years.

Chief executive Saker Nusseibeh (pictured) will stay at the helm of the firm, best known for its ethical and governance investment.

“The same Hermes investment and stewardship teams will remain dedicated to our investment philosophies in London, while our products and services gain greater exposure through the network of 8500 financial intermediaries and institutions that already do business with Federated,” he said.

Federated manages $400 billion. Hermes was advised by Fenchurch Advisory and Federated used Citi.