Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, June 14, 1990 TAG: 9006140586
SECTION: VIRGINIA PAGE: B-1 EDITION: EVENING
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Short
The Virginian-Pilot and The Ledger-Star of Norfolk said its analysis showed the Virginia Supplemental Retirement System could be forced to sell stocks worth $777 million.
A portfolio of about 1,200 stocks managed by the VSRS contains 141 with some connection to South Africa. A list of VSRS stock investments was cross-checked Wednesday with a list of 211 companies identified earlier this year by Michigan authorities as tied to South Africa.
Gov. Douglas Wilder announced last month that the state will dispose of its holdings in firms with substantive ties to South Africa. Wilder has neither defined "substantive ties" nor produced a list of stocks that should be sold.
A task force appointed by Wilder to implement the policy has made little progress on the definition, administration officials acknowledge.
Virginia is the 27th state to adopt a divestiture policy to protest South Africa's white-supremacist government.
The newspaper's comparison shows that a Michigan-style program would affect many of Virginia's largest holdings, including such corporate household names as Philip Morris, Bristol-Myers and General Electric. Of the $2.8 billion worth of stock managed directly by VSRS, $777 million was covered by the Michigan list of banned corporations.
However, those numbers do not include the retirement system's three stock funds under outside management. VSRS board members say they are not sure how a divestiture policy would apply to those funds.
by CNB