CalPERS Calls on American Corps. to Inform Investorsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Subj: CalPERS Calls On American Corporations to Inform... Date: 1/26/99 9:36:09 AM US Mountain Standard Time From: AOL News BCC: Lulu010101
CalPERS Calls On American Corporations to Inform Investors of Y2K Readiness
SACRAMENTO, Calif.--(BUSINESS WIRE)--Jan. 26, 1999--Information technology experts aren't the only ones worrying about the Year 2000 bug. The California Public Employees' Retirement System (CalPERS) is also concerned, and believes investors and the market have the right to know who's ready -- or not ready -- for the next millennium.
In a letter sent today to more than 1,600 American companies in the pension fund's equity portfolio, CalPERS called on American corporations to fulfill their obligations to investors and comply with the Year 2000 disclosure requirements adopted by the Securities and Exchange Commission.
"CalPERS calls on you to ensure that a timely, transparent and accurate Year 2000 disclosure is filed with the SEC," said James E. Burton, Chief Executive Officer for the pension fund. "While you may find these disclosure rules burdensome, I assure you that we and our fellow shareowners believe they are extremely important in gauging the impact, if any, the Year 2000 issue will have on our investments."
CalPERS has a strong interest in ensuring that corporations are prepared to tackle the Year 2000 computer bug. The nation's largest public pension fund has 65 billion -- or nearly 50% of its portfolio
-- invested in publicly-traded companies in the U.S. equity market.
"Investors shouldn't be left in the dark," said Charles P. Valdes, Chairman of CalPERS Investment Committee. "We have the right to know which companies will be prepared for the end of the millennium."
Specifically, CalPERS would like to see corporations comply with the Year 2000 disclosure rules that have been outlined by the SEC and required under the Securities Act of 1933 and the Securities Exchange Act of 1934. These include: -0- *T
-- The company's state of readiness; -- The costs to address the company's Year 2000 issues; -- The risks of the company's Year 2000 issues; and
-- The company's contingency plans. *T -0- CalPERS manages assets totaling more than $145 billion. The System provides retirement and health benefits to more than one million state and public employees and their families. For further information on CalPERS, please visit the System's web site at http://www.calpers.ca.gov.
California Public Employees' Retirement System
Brad Pacheco/Pat Macht, 916/326-3991
Office of Public Affairs
-- lulu (firstname.lastname@example.org), January 27, 1999
Thanks for the info Lulu. Companies will ignore the government, but they cannot afford to ignore an entity with 165 billion invested. This will snowball. If companies tell the truth, institutions will pull out. If the companies are perceived to be lying (and these institutional investers are smart cookies) then money will come out of the market. This is a no win situation for the corps(couldn't resist). I think it will be the institutional guys that begin the fall. It is only a matter of when. A friend on the street says y2k is the major topic around the watercooler but everyone is going to continue to play until TSHTF. As usual, they will know before we do. This is a time to punt.
-- Mike Lang (email@example.com), January 27, 1999.