How can an ethical fund hold BP?
By Emma Wall | Telegraph.co.uk Published: 4:28PM BST 04 Jun 2010
Shareholders are the latest victims in the oil spill disaster – with no solution in sight, BP’s share price is plummeting as fast as the black gold is pumping into the Gulf of Mexico.
On Tuesday alone its shares dropped by 13pc, finishing the week XXpc down at XXp. This is bad news for private investors and fund managers. BP is traditionally a defensive stock, meaning UK equity funds and cautious managed funds, as well as FTSE trackers, could have exposure to the mega cap and be feeling the effects of the fallout.
However, BP was removed from the Dow Jones Sustainability Indices last week. The firm that oversees the indices said the leak’s impact on the environment, local community and BP’s reputation meant it no longer qualified for inclusion.
So how can an ethical fund hold an oil company – especially one embroiled in the worst spill in US history? Read More