American Skandia has tapped Deutsche Asset Management to subadvise three of its retail funds, Michael Murray, senior vice president at American Skandia, told the MutualFundWire.com. This brings the number of Skandia funds that Deutsche Asset Management subadvises to four.

This decision coincides with American Skandia's move to hire Deutsche Asset Management for six portfolios in the formers variable insurance investment platform. This brings the total of portfolios that Deutsche manages in this area to seven.

The firms contend that the total of the new mandate is $745 million: $225 million in international equity, $60 million in large cap value, and $460 million spread across domestic equity, international equity, and core fixed income.

The retail funds affected are as follows: Janus Strategic Value Portfolio, AST Founders Passport Portfolio, and the AIM Balanced Portfolio.

Murray explained that American Skandia developed a new investment technique in conjunction with Deutsche called Managed Alpha. "We are trying to offer investors more consistent levels of return with less risk than is currently available through active management," he continued.

"We took the opportunity of flat financial markets to revise our platforms in order to provide strategies that appeal to a broad array of investors, " stated Murray. "We eliminated strategies that have not been attracting assets and, more importantly, recognized the need for a benchmark-driven, risk controlled, actively managed approach to complement our traditional active manager selection."

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