The Dreyfus Corporation has announced that it is adopting several Bear Stearns Asset Management funds. Dreyfus will manage the funds while Bear Stearns will stay on as sub-advisor.
The deal will transfer approximately $3 billion in money market assets and $1.7 billion of long-term assets to new or existing Dreyfus-managed funds. BSAM will serve as sub-adviser to the newly-formed Dreyfus funds that will correspond to the existing S&P STARS Portfolio, Alpha Growth Portfolio and Intrinsic Value Portfolio.
Additionally, some Bear Stearns Funds will be reorganized into Dreyfus Premier Family Funds and managed by Dreyfus.
Also, Bear Stearns' S&P STARS Opportunities Portfolio and Prime Money Market Portfolio will join the Dreyfus fund family and will be managed by Dreyfus. Meanwhile, the Bear Stearns U.S. Dollar Cash Reserves Fund, an offshore money market fund managed by BSAM, will become part of the Dreyfus-managed Universal Liquidity Plus Fund, an offshore money market fund.
Adoptions have become an easy way for funds to up their distribution without compromising their management. A number of firms have already entered partnerships where they outsource the administration and distribution of their plans to someone else such as Pictet International Management. Last month the company turned over the management of the Pictet International Small Companies Fund to Foward Management.
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