A merger of UAL Corp. and Continental Airlines Inc. would create a company with a combined $9.6 billion in retirement assets, according to the companies' filings with the SEC and other information.
UAL, parent of United Air Lines Inc., Chicago, has $5.4 billion in U.S. defined contribution plans and $156 million in non-U.S. defined benefit plans, according to SEC filings.
Houston-based Continental has $1.37 billion in defined benefit assets, according to SEC filings. In defined contribution assets, Continental has a combined $2.7 billion in three 401(k) plans, according to BrightScope, a firm that analyzes DC plans.
The companies' have a few overlapping defined contribution managers: PIMCO, Dodge & Cox, Fidelity, and Vanguard. The amount each manages was unavailable.
UAL's primary 401(k) plan has 19 investment fund options, managed by Fidelity and Vanguard, and a brokerage account window, according to SEC filings. Information on the DB managers could not be learned by press time.
A $2.4 billion UAL pilot defined contribution plan has eight options, managed by 21 investment firms, as of Dec. 31, 2008, according to its 11-K filing with the SEC. They were Russell, PIMCO, WAMCO, Jacobs Levy Equity Management, Arrowstreet Capital, Turner Investment Partners, MFS Institutional Advisors, Marsico Capital Management, AllianceBernstein, Dodge & Cox, DePrince Race & Zollo, JS Asset Management, Cornerstone Capital Management, Suffolk Capital Management, Sustainable Growth Advisers, ClariVest Asset Management, Copper Rock Capital Partners, Delaware Investment Advisers, Martingale Asset Management, Opus Capital Management and PanAgora Asset Management. The UAL pilot plan also offers a brokerage account window through Charles Schwab.
Continental's DB plan used Russell Investments as a money manager, while its defined contribution plans used a variety of managers as of June 2008, according to the 2010 Money Market Directory. They were Fidelity Investments, Janus Capital Management, T. Rowe Price, American Century, William Blair, Boston Co., Cortina Asset Management, Dimensional Fund Advisors, Dodge & Cox, John Hancock Investment Management Services, Legg Mason Canada, LSV Asset Management, Mellon Capital Management, PIMCO, Charles Schwab Investment Management, Smith Group Asset Management, UBS Global Asset Management and Vanguard.
Neither Simha Sudarshan, UAL managing director-banking, insurance and investments, nor Suzanne Hobbs, Continental director-retirement plans, could be immediately reached for comment.