STAMFORD, Conn. - Proposed changes in pension accounting disclosure under consideration by the Financial Accounting Standards Board could be expanded to include more detailed information on defined benefit plan investments.
John Hepp, FASB project manager, said some board members believe additional information on significant concentrations of investments should be disclosed, allowing users of financial statements to measure the risks presented by such investments.
Mr. Hepp, however, does not support such disclosure because investments already are reviewed by the Department of Labor and the Pension Benefit Guaranty Corp.
The FASB exposure draft on proposed pension disclosure rules could be issued for comment before May.
CalPERS releases list
of performance targets
SACRAMENTO, Calif. - The $108 billion California Public Employees' Retirement System last week announced its list of 10 companies being targeted for shareholder activism in the 1997 proxy season.
Apple Computers Inc. and Reebok International Ltd. head the list, joined by Novell Inc., Sybase Inc., Fleming Cos. Inc., Sensormatic Electronic and Summit Technology Inc.
On the list for the second consecutive year are Stride Rite Corp., Bassett Furniture Industries and Rollins Environmental Services.
Fund executives requested a meeting with each company's outside directors to discuss performance issues. If the companies do not cooperate, CalPERS intends to withhold votes against directors or file shareholder proposals.
"It is clear that these companies have lost their competitive edge and are emerging as financial deadweight compared to their industry peers," said William D. Crist, president of the CalPERS board of administration.
N.Y. Common Fund
ALBANY, N.Y. - The $78 billion New York State Common Retirement Fund terminated Carlson Investment Management, confirmed H. Carl McCall, state comptroller and sole trustee.
Carlson was a small-cap value equity manager in the emerging manager trust of F.I.S. Funds Management. It was terminated because its parent, Carlson Investment Management S.A., said it plans to shut down its small-cap operation in March, according to Cynthia Munk, a spokeswoman for Mr. McCall.
The firm ran $14 million for the fund. The money will be allocated to cash ($2.5 million) and an existing equity index portfolio ($11.5 million).
Congress to get bill
to aid REIT investment
WASHINGTON - Rep. E. Clay Shaw Jr., R-Fla., plans to reintroduce a bill this month that would make it easier for real estate investment trusts to attract investors.
The Real Estate Investment Trust Simplification Act includes a section that would ensure REITs are not disqualified if they fail to ask shareholders their ownership interests each year.
The legislation suggests REITs pay fines for not collecting the information, which is used to prove that ownership is not concentrated among five or fewer investors.
The legislation also would let REITs use a nominal amount of rental income to perform unusual services for a tenant without losing the ability to count the entire rental income.
The bill also would correct a technical glitch so that an investor's business partners would not end up also being considered owning a share in a REIT.