In the wake of last Tuesdays World Trade Center tragedy, American Skandia today named Massachusetts Financial Services interim manager of the Skandia products that were managed by Fred Alger Management. MFS will act as interim co-portfolio manager for the Alger All-Cap Growth portfolios offered through American Skandias Trust and Advisor Fund products.
MFS will step in as an interim manager until American Skandia can complete a review of Alger Managements capabilities following the attack. David Alger, president of Alger Management, and Selai Khoo both managed the All-Cap Growth portfolios. Both executives are missing.
With 38 out of 55 employees that worked for the firm missing, Fred Alger Management is struggling to resume operations. Fred Alger, Davids older brother and founder of the firm, announced last week that he would come out of retirement to manage the company. He will manage all of the firms portfolios with Dan Chung, David Algers son-in-law and a seven-year veteran portfolio manager with Alger. Chung was also named CIO of the firm last week.
Skandia emphasized that the arrangement with MFS is temporary and all management revenue garnered by the contract will be contributed to the families of missing Alger employees. "We continue to have great confidence in Fred Alger Managements ability to rebuild and we will work with them to formulate plans that are in the best interest of American Skandias investors," said Wade Dokken, CEO of American Skandia, in a statement.
Fred Alger Management manages approximately $16 billion in assets, $835 million of which is held in American Skandia investments, according to Skandia.
The firms contingency plans call for using its Morristown, N.J., operations center as its temporary headquarters. The firm employs 235 people globally and has two operations centers in Jersey City, N.J., and Morristown.