Managers look to Centrica to fill BP dividend hole

UK equity income fund managers have made a strong move into integrated energy company Centrica after shifting out of BP on the suspension of its dividend.

BP, which has said it will not pay dividends until at least 2011, was held in 77.6% of IMA UK Equity Income funds three months ago, however this figure has now fallen to 63.2%, according to Financial Express data. Centrica is the largest beneficiary of the quest for income, with the company now featuring in 34.2% of portfolios, up from 25% a quarter ago. Other notable additions include RSA Insurance Group, Scottish & Southern Energy, BT, National Grid and AstraZeneca. The move into Centrica appears to have paid off for income managers, with the British Gas owner last month announci...