BT Pension Scheme (BTPS) has completed the sale of its majority interest in Hermes Investment Management for £246m to US investment giant Federated Investors.

The sale, annouced in April, sees Federated Investors acquire a 60 per cent interest in Hermes, while BTPS will retain a 29.5 per cent share, with the final 10.5 per cent being split between members of Hermes management.

An additional £13.9m of regulatory capital was paid for, bringing the total purchase price up to £259.9m.

The deal values Hermes at £410m, the investment manager currently has £327.6bn in assets under management.

BTPS trustee chair, said: ‘‘Hermes has delivered excellent investment performance and stewardship to the scheme over many years, operating initially as our in -house manager and in recent years, building on this capability to develop a strong multi-client business.

“This transaction is the next step in the evolution of Hermes, as it continues to expand its global business. In Federated, we have identified a firm with shared values and beliefs that will both help grow Hermes and ensure the continued focus on delivering excellent investment performance and steward ship for the scheme, in the interests of our members.’’

BTPS now have the opportunity to sell additional shares over the next three to six years.

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