BP –the pension fund managers should be doing more to help
There has been lots of press coverage how the cut in the dividend would be a blow to millions of savers with approximately £1 in every £7 received by UK pension funds coming from BP. It’s also worth remembering that there are probably a large number of US pension fund holders are well. However, very little seems to have been made of the crucial role being played by the pension fund managers and large institutions who are the major shareholders in the oil giant.
The more than 40% fall in share price hasn’t arisen through private investor selling, it’s been the big institutions and hedge funds who have been leaving the sinking ship. It’s surely time for the big pension fund managers to offer support in the best way possible by acquiring shares. All the leading institutional analysts take great pleasure in telling us how cheap BP’s shares now appear, however, their investment management brethren sitting across the trading floor appear reluctant to act. JPMorganCazenove has this morning reiterated its view that BP’s entire US upstream and downstream business has a likely market worth…