The research report detailing American Skandia's reasons for making the sub-advisory switch are a first for the firm. Shareholder communications detailing the proposed change will also go out shortly.

Pilgrim Baxter won the spot from a field of 185 small cap managers, which was eventually whittled to a short list of seven. Said Murray, "One of the key reasons we selected PBHG is their historic ability to deliver greater returns assuming less risk as measured by not only standard deviation but also their upside-downside capture and relative beta."

Janus continues to sub-advise mid-cap, large-cap, international, and value portfolios across American Skandia's product lines.

In similar but unrelated news, American Skandia is switching the sub-advisor for one of its money market funds from JP Morgan to Wells Capital Management. In this case, market dominance, rather than performance, affected the change. Both sub-advisor changes are expected to take place in September.

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