Asset management firm
The agreement, reached after months of negotiation and due diligence, calls for the transfer of approximately $3 billion of money market assets and $1.7 billion of long-term assets to new or existing Dreyfus-managed funds.
Dreyfus, the mutual fund arm of
Dreyfus will give Bear Stearns a much-needed facelift with respect to its sales force, which currently has just 500 employees, given its 50 years of experience and longstanding distribution relationships. Meanwhile, the timing of the deal couldnt be better as state and federal regulators are uncovering a slew of improprieties at dozens of fund shops.
Bear Stearns will serve as sub-advisor to the newly formed Dreyfus funds that will correspond to the existing S&P STARS Portfolio, Alpha Growth Portfolio and Intrinsic Value Portfolio. Other Bear Stearns Funds will be reorganized into established funds within the Dreyfus Premier Family of Funds and be managed by Dreyfus.
Additionally, Bear Stearns' S&P STARS Opportunities Portfolio and Prime Money Market Portfolio will become funds within the Dreyfus Family of Funds and will be managed by Dreyfus. The Bear Stearns U.S. Dollar Cash Reserves Fund, an offshore money market fund, will become part of the Dreyfus-managed Universal Liquidity Plus Fund, an offshore money market fund.