However, the US Government take-over of these institutions has reduced, if not eliminated, the risk of this exposure. Lehman Bros, as one of our external managers managed about 6 per cent of the total portfolio. The bulk of these resources was invested in treasury securities of G7 countries, and as such faced very low risk.
A very small amount $ million) was invested in a mutual fund sponsored directly by Lehman Bros. We were able to liquidate this asset at no loss. The bulk of our asset-backed securities were issued by Merrill Lynch. The take-over of this institution by the Bank of America eliminates or reduces the risk attached to this asset.