Ohio public pension plans losing money on BP stock

How much money Ohio government has lost on BP stock

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By Laura A. Bischoff, Columbus Bureau Updated 11:50 AM Wednesday, July 21, 2010

COLUMBUS — BP’s stock price is dropping as fast as the oil gushing into the Gulf of Mexico, and it’s costing Ohio taxpayers millions of dollars.

Before the Deepwater Horizon oil rig explosion on April 20, all five public pension systems and the Ohio Bureau of Workers’ Compensation owned more than 30 million shares of BP stock. The pension systems and BWC collectively lost $177 million in value on BP stock.

Post-spill the agencies are taking a mixed approach on what to do with BP stock. Some dumped shares, some held and others bought more. Most of the funds and the BWC are managed by outside investment advisors who follow guidelines set by the systems.

The state’s second largest pension system, Ohio Public Employees Retirement System, added BP stock to its investment portfolio by purchasing 2 million more shares after the rig explosion.

BP closed at $59.48 per share on April 19 and at $27.05 on June 28 on the New York Stock Exchange.

Aristotle Hutras, director of the Ohio Retirement Study Council, and the funds themselves noted that BP stock makes up a tiny fraction of their diversified investment portfolios.

While $177 million is big money, the five pension funds collectively have $143.8 billion in investments.

“They’re in it for the long-haul. They are institutional investors,” Hutras said.

Contact this reporter at  (614) 224-1624 or lbischoff @DaytonDailyNews.com.

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