Large BP overweight hits Beagles' JOHCM income fund dividend

A position in BP has wiped 10% off the dividend growth on the £580m JO Hambro Capital Management UK Equity Income fund for 2010.

Managers Clive Beagles and James Lowen expected to grow dividends by 15% in 2010 but have cut their estimate to 5% due to an overweight position in BP at the time of the Gulf of Mexico oil spill. The oil giant was forced to suspend dividend payouts until at least next year as it embarked on a cleanup operation, setting up a $20bn (£12.57bn) spill response fund. Lowen said: “We were very overweight BP and the day before the issue in the Gulf happened, its results came out, beating estimates. The valuation was good and the dividend yield was at a 20-year high.” The Monday morning aft...