NU Online News Service, Dec. 11, 12:10 p.m. – American Skandia Investment Services, Inc., Shelton, Conn. says it has reinstated Fred Alger Management Inc. as sole subadvisor of the AST All-Cap Growth Portfolio of American Skandia Trust and ASAF All-Cap Growth Fund.
The reinstatement comes three months after MFS Investment Management stepped in as interim co-subadvisor with Alger for the American Skandia portfolios after the Alger firm lost its offices and many of its Manhattan-based employees in the Sept. 11 attack on the World Trade Center. Among those lost were portfolio managers David Alger, brother of the company’s founder, and Seilai Khoo.
“After carefully monitoring and reviewing the status of the portfolios and Fred Alger Management’s ability to rebuild their firm, we decided that it is the appropriate time to shift management responsibilities back to Alger,” said Michael Murray, senior vice president and chairman of the American Skandia investment committee.
Following the events of Sept. 11, Fred M. Alger came out of retirement to assume leadership of the firm he founded in 1964. At the time of the attack, Fred Alger Management was managing some $16 billion in assets, including about $835 million for American Skandia.
In response to the tragedy, both American Skandia and MFS contributed its $900,000 in management revenue from this contract to a fund for the families of Alger employees who were lost. American Skandia contributed an additional $25,000 to the fund.