Lagged Disclosures

Q How can I find out which stocks my mutual fund is invested in? — R.M., Dallas A You generally can’t know what any managed fund owns at the moment, but most funds will publish lists of holdings as of the end of each month or quarter. You’ll likely find these reports on fund company websites and also at sites such as morningstar.com, which offer lots of information on a wide range of funds.

Don’t assume that the lists are still 100 percent accurate. While a fund may have many shares of a company as of the end of last quarter, it might have sold off most of them by the time you’re reading the report. Some fund managers engage in “window dressing,” loading up on hot stocks near the end of a quarter, so that they’ll look good. Q What’s a “golden parachute”? — L.B., Binghamton, New York A It’s deployed when a company gives a hefty payout to a departing CEO or top executive. Some executives’ contracts stipulate that if they are dismissed or the company is sold, they’ll receive a certain payout, potentially including cash, stock, options, continued travel allowances, health care coverage and more. Many may seem reasonable given the performance of the executive and the company, but others are rather outlandish, and sometimes go to bigwigs who haven’t done stellar jobs or been in their positions long.

A classic example is former Pfizer CEO Henry McKinnell, who left his position in 2006 after about five years with more than $100 million in severance and an $83 million pension — at a time when the company was losing money and its stock had plunged.

As you might imagine, shareholders don’t love golden parachutes. Want more information about stocks? Send us an email to foolnews@fool.com.