Skandias changes to its sub-accounts raise the profile of
Explaining the changes, Michael Murray, chairman of American Skandias investment committee, said, "We mean to meet or beat benchmarks at a lower level of risk."
On its advisor Web site, American Skandia explained that Deutsche Asset Management brings an expanded selection of "managed Alpha" investing to the complex. "A managed Alpha strategy combines an investment strategy that seeks to offer a benchmark index risk while outperforming the benchmark index through active stock selection," according to the Web site.
Deutsche Asset Management has taken over investment management for an international small-cap fund formerly sub-advised by
The two new mutual funds are ASAF DeAM Large-Cap Growth Fund and ASAF DeAM Large-Cap Value Fund. The three new variable annuity sub-accounts are AST DeAM Large-Cap Growth Portfolio, AST DeAM Small-Cap Value Portfolio and AST DeAM Bond Portfolio.
Janus continues to sub-advise two mutual funds and two VA sub-accounts, but Founders and AIM have now disappeared from American Skandias line up. Murray said that while the firm is keeping an eye on Januss management of its funds, American Skandia does the same with all its sub-advisors.
American Skandia is also eliminating two sub-accounts through consolidation. "We wanted to make sure that the asset classes were viable going forward," Murray said, adding that both the company and shareholders will benefit from the changes.
With the consolidation of the two sub-accounts, sub-advisors
Similarly, the AST Scudder Japan Portfolio, which has only $5.9 million in assets under management, will be rolled into the AST American Century International Growth Portfolio. "We felt more comfortable with a diversified international approach rather than a Japanese mandate," Murray said.
American Skandia has also more than doubled its number of
