David Pitt-Watson is to remain with Hermes Focus Asset Management and take control of the firm's high-profile Focus funds following the shock resignations on Tuesday of Peter Butler, head of corporate governance and Steve Brown, director of investments.

The confirmation that Pitt-Watson will replace Butler goes some way to allay fears among key clients, including the £1.5bn Nottinghamshire County Council pension scheme and the £2bn Essex County Council fund, over a potential exodus of talent.