IFS as Independent Fiduciary for AMR Plans

Independent Fiduciary Services (IFS) served as independent fiduciary to numerous ERISA plans sponsored by AMR Corporation (parent of American Airlines).  Our role as the “independent third party” on behalf of the Plans is highlighted in the following excerpt of a public announcement from AMR:   FOR RELEASE:  Monday, Sept. 15, 2008 

AMR CORPORATION COMPLETES SALE OF AMERICAN BEACON ADVISORS, INC. TO LIGHTHOUSE HOLDINGS, INC., AN AFFILIATE OF PHAROS CAPITAL GROUP, LLC AND TPG CAPITAL, L.P.

FORTH WORTH, Texas - AMR Corporation, the parent company of American Airlines, Inc., announced today that it has completed the sale of American Beacon Advisors, Inc., its wholly owned asset-management subsidiary, to Lighthouse Holdings, Inc., which is owned by investment funds affiliated with Pharos Capital Group, LLC and TPG Capital, L.P., two leading private equity firms.  AMR received a total consideration of $480 million.  While primarily a cash transaction, AMR will acquire a small equity stake in the parent company of Lighthouse Holdings.

American Beacon will continue to provide a number of services for AMR and its affiliates, including cash management for AMR and investment advisory services and investment management services for American Airlines pension, 401(k) and other health and welfare plans.  An independent third party reviewed and approved the continuing relationships with American Beacon and American Airlines pension, 401(k) and other health and welfare plans to satisfy the fiduciary duties and other rules that apply to these plans.