Institutional investors could start ditching companies not prepared for the millennium computer bug, according to one fund manager.
The failure of companies to demonstrate Y2K compliance could result in the re-weighting of their stocks in portfolios or to downgrades of investment, Dresdner RCM Global Investors director Mark Konyn said.
In some cases, it could lead to the dumping of the companies' stocks, he warned.
Mr Konyn said institutional investors needed to examine the possible consequences of the Y2K bug on their portfolios and to take action to minimise them.
'Investors need to start being more sensitive to this issue, especially big pension funds,' he said.
Investors should focus less on whether fund managers were Y2K-compliant and more on whether the companies in which they invested were safe from computer-system breakdowns.
