American Skandia Investment Services (American Skandia), the investment advisor for the American Skandia Trust and American Skandia Advisor Funds, has announced a sub-advisory change, replacing Janus Capital Corporation with Pilgrim Baxter & Associates, Ltd (‘PBHG’) for the AST and ASAF Janus small-cap growth portfolios – a deal worth $650m (e741m) to the new manager.
American Skandia Trust is one of the underlying mutual funds whose portfolios are offered as investment options for the Company’s variable insurance products.
American Skandia Advisor Funds is the Company’s multi-manager retail mutual fund family.
Reasons cited for the switch include changes in the Janus small-cap growth team, as well as poor performance relative to the portfolio’s benchmark and industry peers.
Michael Murray, chairman of American Skandia’s Investment Committee, stated, “These managers’ small-cap performance relative to peers and benchmarks demonstrates a superior track record.” Murray added, “ It’s also important to note that this is the only Janus change we are making and that we still have an extremely strong relationship with Janus.”
Janus will continue to sub-advise seven portfolios with assets totaling approximately $6 billion.
The sub-advisor change is scheduled to take effect by mid-September 2001.