Federated Investors, the US fund manager, has agreed to pay the BT Pension Scheme £246m for a majority stake in Hermes Investment Management, in the latest example of consolidation within the investment sector.

Pittsburg-based Federated will own 60% of the London-based fund manager, while the BT Pension Scheme will retain a 29.5% share in Hermes. The remaining stake will be held by members of Hermes’ management, according to a statement.