-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ozm4sQUhmmr0WS6f/ChVC6yZI3OwIyzLvRMpz3HgI3k8kpJFIv2FkAgPXBzJjSRP 2zO9W0ChIR4M2qFD/EEqtQ== 0000881453-98-000186.txt : 19981231 0000881453-98-000186.hdr.sgml : 19981231 ACCESSION NUMBER: 0000881453-98-000186 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981230 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN SKANDIA LIFE ASSURANCE CORP/CT CENTRAL INDEX KEY: 0000881453 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE CARRIERS, NEC [6399] IRS NUMBER: 061241288 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: SEC FILE NUMBER: 033-62791 FILM NUMBER: 98777808 BUSINESS ADDRESS: STREET 1: ONE CORPORATE DRIVE CITY: SHELTON STATE: CT ZIP: 06484 BUSINESS PHONE: 2039261888 MAIL ADDRESS: STREET 1: ONE CORPORATE DRIVE CITY: SHELTON STATE: CT ZIP: 06484 424B3 1 WELLS XTC S2 SUPP Supplement to Prospectus Dated May 1, 1998 Supplement dated December 31, 1998 This Supplement should be retained with the current Prospectus for your variable annuity contract issued by American Skandia Life Assurance Corporation ("American Skandia"). If you do not have a current prospectus, please contact American Skandia at 1-800-SKANDIA. A. CHANGES TO VARIABLE INVESTMENT OPTIONS 1. Effective January 1, 1999 Janus Capital Corporation will be the new portfolio sub-advisor for the Founders Capital Appreciation portfolio. In connection with this change the portfolio's name is changed to "AST Janus Small-Cap Growth." The following information is added to the table entitled "Underlying Mutual Fund Portfolio Annual Expenses (as a percentage of average net assets)":
Management Management Other Other Total Annual Total Annual Fee Fee Expenses Expenses Expenses Expenses after any without any after any without any after any without any applicable applicable applicable applicable applicable applicable reimbursement reimbursement reimbursement reimbursement reimbursement reimbursement - ------------------------------------------------------------------------------------------------------------------------------------ American Skandia Trust AST Janus Small-Cap Growth1 N/A 0.90% N/A 0.23% N/A 1.13%
(1) Prior to January 1, 1999, the Investment Manager had engaged Founders Asset Management, LLC as Sub-advisor for the Portfolio (formerly the Founders Capital Appreciation portfolios). The Expense Examples for the new AST Janus Small-Cap Growth sub-account are the same as the expense examples for the Founders Capital Appreciation sub-account within the Prospectus dated May 1, 1998. The following is added to the section entitled "INVESTMENT OPTIONS - Underlying Mutual Fund: American Skandia Trust": Sub-account Underlying Mutual Fund Portfolio AST Janus Small-Cap Growth AST Janus Small-Cap Growth WellsVA+/Wells XT/Wells Flex (12/98) 2. Effective December 31, 1998, each portfolio of AST will have the prefix "AST" added to the portfolio name. The AST prefix will appear on the effected portfolio(s) on all statements and reports for periods beginning on or after January 4, 1999. The names of the respective sub-accounts are changed accordingly. Effective December 31, 1998, the name of the Neuberger&Berman Mid-Cap Value portfolio of AST and the Neuberger&Berman Mid-Cap Growth portfolio of AST are changed to AST Neuberger Berman Mid-Cap Value portfolio and AST Neuberger Berman Mid-Cap Growth portfolio, respectively. The names of the respective sub-accounts are changed accordingly. The new portfolio and sub-account names will appear on all statements and reports for periods beginning on or after January 4, 1999. B. SHORT DESCRIPTIONS - APPENDIX B The following short description of the AST Janus Small-Cap Growth Portfolio is to be added: AST Janus Small-Cap Growth Portfolio: The investment objective of the Portfolio is capital appreciation. The Portfolio pursues its objective by normally investing at least 65% of its total assets in securities issued by small-sized companies. Small-sized companies are those that have market capitalizations of less than $1.5 billion or annual gross revenues of less than $500 million. Companies whose capitalization or revenues fall outside these ranges after the Portfolio's initial purchase continue to be considered small-sized for the purposes of this policy. The Portfolio may also invest in stocks of larger companies with potential for capital appreciation. The Portfolio will invest substantially all of its assets in common stocks to the extent the Sub-advisor believes that the relevant market environment favors profitable investing in those securities. The Sub-advisor generally takes a "bottom up" approach to building the Portfolio. In other words, it seeks to identify individual companies with earnings growth potential that may not be recognized by the market at large. Although themes may emerge in the Portfolio, securities are generally selected without regard to any defined industry sector or other similarly defined selection procedure. Realization of income is not a significant investment consideration. Because the Portfolio invests primarily in common stocks, the fundamental risk of investing in the Portfolio is that the value of the stocks it holds might decrease. Smaller or newer issuers, such as those in which the Portfolio invests, are more likely to realize more substantial growth as well as suffer more significant losses than larger or more established issuers. Investments in such companies can be both more volatile and more speculative. The Portfolio is designed for long-term investors who seek capital appreciation and who can tolerate the greater risks associated with investments in foreign and domestic common stocks. The Portfolio is not designed as a short-term trading vehicle and should not be relied upon for short-term financial needs. The Sub-advisor tries to reduce the risk of the Portfolio through diversification of the Portfolio's assets, so that the effect of any single holding on its overall portfolio value is reduced. In addition, the Portfolio will not invest 25% or more of its total assets in any particular industry (excluding U.S. government securities). C. NOTICE OF SUBSTITUTION American Skandia has filed an application with the Securities and Exchange Commission ("SEC") to substitute the following "Replaced Portfolio/Sub-Account" with the "Substitute Portfolio/Sub-Account".
- ----------------------------------------------------------------- ------ ----------------------------------------------------------- REPLACED PORTFOLIO/SUB-ACCOUNT SUBSTITUTE PORTFOLIO/SUB-ACCOUNT - ----------------------------------------------------------------- ------ ----------------------------------------------------------- - ----------------------------------------------------------------- ------ ----------------------------------------------------------- Stein Roe Venture Portfolio of American Skandia Trust/Stein Roe AST T. Rowe Price Small Company Value Portfolio of Venture Sub-account American Skandia Trust/AST T. Rowe Price Small Company Value Sub-account - ----------------------------------------------------------------- ------ -----------------------------------------------------------
In the application to the SEC, American Skandia is seeking permission to allow transfers from the Replaced Portfolio/Sub-account to any other investment options available under the Annuity for a period of 60 days prior to any substitution without the imposition of any transfer fee. Under the proposed substitution, such transfers would not count in determining whether the maximum number of free transfers have been exceeded. Furthermore, under the proposed substitution, the transfer of Account Value from the Replaced Portfolio/Sub-account to the Substitute Portfolio/Sub-account would likewise not be subject to a transfer fee nor count in determining whether the maximum number of free transfers have been exceeded. The proposed substitution will not affect your rights or our obligations under the Annuity. American Skandia will bear any expenses in connection with the proposed substitution. In anticipation of the proposed substitution, the Replaced Portfolio/Sub-account will no longer be offered as an investment option in Annuities issued on or after January 4, 1999. Contract Owners with Account Value allocated to the Replaced Portfolio/Sub-account on January 4, 1999 may remain in the Sub-Account until the earliest to occur of: (1) the date they transfer Account Value out of the Replaced Portfolio/Sub-account; or (2) the date the proposed substitution is completed. Contract Owners who have a dollar-cost averaging, bank drafting, rebalancing or asset allocation program in effect as of January 4, 1999, that include the Replaced Portfolio/Sub-account, will be able to continue such pre-scheduled transactions until the date the proposed substitution is completed. -----END PRIVACY-ENHANCED MESSAGE-----