LONDON, Dec 6 (Reuters) - U.S. fund manager Federated Investors FII.N is considering a bid for Britain's Hermes Investment Management, a source familiar with the matter said on Wednesday.
Active asset managers are under pressure from index-tracking passive funds, which charge lower fees, and there are other possible bidders for Hermes, which has nearly 31 billion pounds ($41 billion) in assets under management, include Australian fund manager Challenger CGF.AX and U.S. firms Old Mutual Asset Management OMAM.N and Eaton Vance EV.N , the source added.
Investors expect more consolidation after deals including U.S. manager Janus merging with Henderson and a tie-up between Standard Life (LON:SLA) and Aberdeen Asset Management. Pennsylvania based Federated had $364 billion under management as of Sept. 30. It is best known for its money market funds, but lately has emphasised other products.
Hermes' biggest client is the pension fund of British telecoms company BT Group BT.L and Federated's interest was reported earlier by Sky News.
Hermes, Eaton Vance and Federated Investors declined to comment, while Challenger could not be reached for comment outside of office hours and Old Mutual Asset Management did not immediately respond to request for comment. ($1 = 0.7472 pounds)