LONDON, Aug 12 (Reuters) - Investor Neil Woodford's EquityIncome Fund sold its 160 million pound ($207.58 million) stakein BAE Systems in July, it said on Friday, citingpension and dividend concerns.
"(BAE Systems) has a substantial pension deficit which issomething of a concern in this environment of ultra-low interestrates," the firm said in a monthly fund update.
"With only modest growth in the dividend expected over thenext few years, it is no longer as appealing as otherbusinesses."
BAE Systems said in July that its share of the company's netpension deficit increased by 1.6 billion pounds in the firsthalf of 2016 to stand at 6.1 billion.
Britain's combined defined benefit, or final salary, pensiondeficit has hit 1 trillion pounds, consultants Hymans Robertsonsaid on Friday.($1 = 0.7708 pounds) (Reporting by Carolyn Cohn; editing by Simon Jessop)