No one should accuse the fund industry of being overly sentimental. For the second time it appears that Fred Alger Management is losing a subadvisory mandate as a part of the fallout of the attack on the World Trade Center. Fifty-five of the firm's 235 employees, including its president David Alger, were killed in the attack.

Mutual of America is reportedly dropping Alger as the advisor of a portion of its All America fund. It's own unit --Mutual of America Capital Management -- will assume management duties for that portion of the fund. The news was released in SEC filings.

In the first week after the attack, American Skandia announced that it had appointed MFS Investment Management to comanage assets that Alger had been overseeing on its own for the All-Cap Growth funds and variable annuities.

The All America fund splits its $50 million portfolio across three investment advisors, including its own unit and Oak Associates. Alger had managed $5 million of the fund's small cap holdings.

David Alger, who was also Alger's chief investment officer, had been the portfolio manager overseeing Alger's portion of the fund. Mutual of America's Thomas Larsen will take over management of the small cap part of the fund.  

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