Commenting on the BP oil spill and its implications for pension funds, Joanne Segars, NAPF Chief Executive, said:
“BP’s difficulties should not have an immediate or serious impact on those saving into a pension, or on those who have retired.
“Over the last few years pension funds have shifted out of UK shares and the average fund is now spread across many companies and many types of global asset. We estimate that UK pension funds’ exposure to BP is about 1.5% of total assets, which are in excess of £800bn.
“The worry for institutional investors is that this disastrous oil leak will hit BP’s prospects for longer-term growth and future dividends. BP’s priority should be to get this crisis under control to protect the long term strength of the company. Beyond that shareholders will have many questions that need answering.”
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