Pension fund clients of Bear Stearns Asset Management contacted by P&I Daily today said they are staying the course for now.
American Airlines Inc.s $9.1 billion pension fund has $230 million in active domestic all-cap value equities under management with BSAM and $40 million committed to the Bear Stearns Merchant Banking Partners II private equity fund, said William F. Quinn, chairman of American Beacon Advisors Inc., which oversees the Fort Worth, Texas-based pension fund. JPMorgan Asset Management, which will integrate BSAM into its operations, manages $700 million in long-duration bonds and does currency overlay on international assets for the American Airlines fund, he added.
This is really a surprise, Mr. Quinn said of the announced acquisition of Bear Stearns by JPMorgan Chase & Co.
Mr. Quinn said he hasnt heard anything yet from BSAM or JPMAM. From the standpoint of them managing money, we havent been concerned, Mr. Quinn said. If the investment team responsible for the American Airlines portfolio moves over to JPMAM, he said American Airlines would continue to give them a chance to manage the money.
Illinois State Board of Investment, Chicago, invested $15 million in Bear Stearns Merchant Banking Partners II, said William R. Atwood, executive director of the $11.8 billion fund. The board hasnt heard anything from BSAM or JPMAM, he added, saying the BSAM private equity group operates fairly autonomously from Bear Stearns.
Pennsylvania Public School Employees Retirement System, Harrisburg, has $300 million committed to Bear Stearns Merchant Banking Partners II fund and $150 million committed to Bear Sterns Merchant Banking Partners III, said Evelyn Tatkovski, spokeswoman for the $67.4 billion system. A system representative is on the advisory committee of both funds, giving it certain voting rights, said Ms. Tatkovski. System officials have been in contact with Bear Stearns officials since the announced JPMorgan deal, she said.