AIG clarification

AIG Mutual fund house people have sent me this letter to clarify their latest position.


AIG Investments
Sept 16 Letter

Dear Investor:

I am writing to update you on some of the news regarding AIG and the recent actions of the principal rating agencies. Notwithstanding the downgrades announced last evening, the company is working aggressively on various fronts to improve liquidity during this unsettling period.

While AIG has not yet reached a complete solution, we expect that the New York and Pennsylvania insurance departments will provide the necessary approvals to allow AIG to unlock $20 billion in liquidity already within the enterprise through the exchange of capital between certain AIG businesses. This is a positive first step for the company, and we are working on additional measures.

I want to remind you that AIG Investments client assets are not impacted by AIG’s current market situation and our commitment to protecting our client’s investments is unwavering.

Our Investor-to-Investor commitments are made by AIG’s various insurance subsidiaries, which are strong, well-positioned businesses in diverse markets around the world. These companies are well capitalized and meet or exceed regulatory capital requirements in their respective markets.

Our investment teams remain in place and are focused solely on managing your assets. As you know, their incentives are based primarily on the success of their strategies, not AIG’s results. They are working hard to ensure that the impact of the current turmoil is mitigated and are working to find opportunities in the current crisis.

Many of you have also inquired about our Houston employees in the wake of Hurricane Ike. I am pleased to report that while there has been extensive damage to the area, all of our employees and their families are safe and accounted for. In addition, back-up operations and contingency plans are being exercised to ensure the continuity of the businesses.

I will continue to communicate important developments as they become available.

Best regards,

Win Neuger

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