-----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, FDghtmPju54bIWfannhxeEWYpm3/NGncrdOKjOBNsRr7wO+uYd+4vrk03AQ+R8zj P0TEIb8jiMIID14cNStcNQ== 0000881453-99-000140.txt : 19991018 0000881453-99-000140.hdr.sgml : 19991018 ACCESSION NUMBER: 0000881453-99-000140 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19991013 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: 333-24989 FILM NUMBER: 99727222 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 CH2 S2 10/99 SUPP Supplement to Prospectus Dated May 3, 1999 Supplement dated October 18, 1999 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. The underlying Portfolios shown in bold below are being offered as new Sub-accounts under your Annuity as of October 18, 1999. In addition, the Underlying Mutual Fund Portfolio Annual Expenses for each Portfolio of American Skandia Trust have been restated to reflect a deemed 12b-1 fee, as discussed in Note 1 below.
- ------------------------------------------------------------------------------------------------------------------------------------ Underlying Mutual Fund Portfolio Annual Expenses (as a percentage of the average net assets of the underlying Portfolios) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------ --------------- ------------- --------------- -------------- -------------- ------------- Management Other Estimated Total Annual Fee Net Fees Expenses Distribution Portfolio Waivers and Annual UNDERLYING PORTFOLIO and Service Operating Expense Fund (12b-1) Expenses Reimbursement Operating Fees(1) Expenses - ------------------------------------------ --------------- ------------- --------------- -------------- -------------- ------------- - ------------------------------------------ --------------- ------------- --------------- -------------- -------------- ------------- AST Founders Passport 1.00% 0.30% 0% 1.30% N/A 1.30% AST T. Rowe Price International Equity 1.00% 0.25% 0% 1.25% N/A 1.25% AST AIM International Equity 0.87% 0.26% 0.14% 1.27% N/A 1.27% AST Janus Overseas Growth 1.00% 0.27% 0% 1.27% N/A 1.27% AST American Century International Growth 1.00% 0.65% 0% 1.65% N/A 1.65% AST MFS Global Equity(2) 1.00% 0.48% 0.06% 1.54% N/A 1.54% AST Janus Small-Cap Growth 0.90% 0.22% 0.05% 1.17% N/A 1.17% AST Kemper Small-Cap Growth 0.95% 0.60% 0.18% 1.73% 0.20% 1.53% AST Lord Abbett Small Cap Value 0.95% 0.36% 0% 1.31% N/A 1.31% AST T. Rowe Price Small Company Value 0.90% 0.21% 0% 1.11% N/A 1.11% AST Neuberger Berman Mid-Cap Growth(3) 0.90% 0.17% 0.08% 1.15% N/A 1.15% AST Neuberger Berman Mid-Cap Value(4) 0.90% 0.15% 0.19% 1.24% N/A 1.24% AST T. Rowe Price Natural Resources 0.90% 0.26% 0.07% 1.23% N/A 1.23% AST Oppenheimer Large-Cap Growth(5) 0.90% 0.22% 0.05% 1.17% N/A 1.17% AST Marsico Capital Growth 0.90% 0.21% 0.06% 1.17% N/A 1.17% AST JanCap Growth 0.90% 0.14% 0.01% 1.05% 0.02% 1.03% AST MFS Growth(2) 0.90% 0.24% 0.06% 1.20% N/A 1.20% AST Bankers Trust Managed Index 500 0.60% 0.26% 0% 0.86% 0.06% 0.80% AST Cohen & Steers Realty 1.00% 0.30% 0.07% 1.37% N/A 1.37% AST American Century Income & Growth 0.75% 0.25% 0.05% 1.05% N/A 1.05% AST Lord Abbett Growth and Income 0.75% 0.16% 0.08% 0.99% N/A 0.99% AST MFS Growth with Income(2) 0.90% 0.23% 0.06% 1.19% N/A 1.19% AST INVESCO Equity Income 0.75% 0.18% 0.04% 0.97% N/A 0.97% AST AIM Balanced 0.74% 0.26% 0.08% 1.08% N/A 1.08% AST American Century Strategic Balanced 0.85% 0.28% 0% 1.13% N/A 1.13% AST T. Rowe Price Asset Allocation 0.85% 0.24% 0% 1.09% N/A 1.09% AST T. Rowe Price International Bond 0.80% 0.31% 0% 1.11% N/A 1.11% AST Federated High Yield 0.75% 0.20% 0% 0.95% N/A 0.95% AST PIMCO Total Return Bond 0.65% 0.18% 0% 0.83% N/A 0.83% AST PIMCO Limited Maturity Bond 0.65% 0.21% 0% 0.86% N/A 0.86% AST Money Market 0.50% 0.16% 0% 0.66% 0.06% 0.60% INVESCO VIF Technology 0.75% 5.85% N/A 6.60% 5.20% 1.40% INVESCO VIF Health Sciences 0.75% 3.57% N/A 4.32% 3.05% 1.27% INVESCO VIF Financial Services(6) 0.75% 0.59% N/A 1.34% 0.09% 1.25% INVESCO VIF Telecommunications(6) 0.75% 0.59% N/A 1.34% 0.09% 1.25% INVESCO VIF Dynamics 0.60% 14.41% N/A 15.01% 13.56% 1.45% Evergreen VA Global Leaders 0.95% 0.61% N/A 1.56% 0.56% 1.00% Evergreen VA Special Equity(7) 1.45% 0.72% N/A 2.17% 1.17% 1.00% ProFund VP Europe(8) 0.75% 0.78% 0.25% 1.78% N/A 1.78% ProFund VP SmallCap(8) 0.75% 0.70% 0.25% 1.70% N/A 1.70% ProFund VP UltraOTC(8) 0.75% 0.66% 0.25% 1.66% N/A 1.66% - ------------------------------------------ --------------- ------------- --------------- -------------- -------------- -------------
1 Pursuant to a vote of the shareholders of American Skandia Trust (the "Trust"), the Trust has adopted a Distribution Plan (the "Distribution Plan") under Rule 12b-1 of the Investment Company Act of 1940 to permit an affiliate of the Trust's Investment Manager to receive brokerage commissions in connection with purchases and sales of securities held by Portfolios of the Trust, and to use these commissions to promote the sale of shares of such Portfolios. While the brokerage commission rates and amounts paid by the various Portfolios are not expected to increase as a result of the Distribution Plan, the staff of the Securities and Exchange Commission takes the position that commission amounts received under the Distribution Plan should be reflected in the expenses of the Funds. Total returns for the Portfolios are not expected to be adversely affected by the deemed increase in fees. The Distribution Fee estimates are derived from data regarding each Portfolio's brokerage transactions, and the proportions of such transactions directed to selling dealers, for the period ended June 30, 1999. However, it is not possible to determine with accuracy actual amounts that will be received under the Distribution Plan. Such amounts will vary based upon the level of a Portfolio's brokerage activity, the proportion of such activity directed under the Distribution Plan, and other factors. 2 These portfolios commenced operations on October 18, 1999. "Other Expenses" are based on estimated amounts for the fiscal year ending December 31, 1999. 3 Prior to May 1, 1998, the Investment Manager had engaged Berger Associates, Inc. as Sub-advisor for the Portfolio (formerly, the Berger Capital Growth portfolio), for a total Investment Management fee payable at the annual rate of 0.75% of the average daily nets assets of the Portfolio. As of May 1, 1998, the Investment Manager engaged Neuberger Berman Management Incorporated as Sub-advisor for the Portfolio, for a total Investment Management fee payable at the annual rate of 0.90% of the average daily net assets of the Portfolio. The Management Fee in the above chart reflects the current Investment Management fee payable to the Investment Manager. 4 Prior to May 1, 1998, the Investment Manager had engaged Federated Investment Counseling as Sub-advisor for the Portfolio (formerly, the Federated Utility Income portfolio), for a total Investment Management fee payable at the annual rate of 0.75% of the first $50 million of the average daily net assets of the Portfolio, plus .60% of the Portfolio's average daily net assets in excess of $50 million. As of May 1, 1998, the Investment Manager engaged Neuberger Berman Management Incorporated as Sub-advisor for the Portfolio, for a total Investment Management fee payable at the annual rate of 0.90% of the average daily net assets of the Portfolio. The Management Fee in the above chart reflects the current Investment Management fee payable to the Investment Manager. 5 Prior to December 31, 1998, the Investment Manager had engaged Robertson, Stephens & Company Investment Management, L.P. as Sub-advisor for the Portfolio (formerly the Robertson Stephens Value + Growth portfolio), and the total Investment Management fee was at the annual rate of 1.00% of the average daily net assets of the Portfolio. As of December 31, 1998, the Investment Manager engaged OppenheimerFunds, Inc. as Sub-advisor for the Portfolio, and the Investment Management fee is payable at the annual rate of 0.90% of the first $1 billion of the average daily net assets of the Portfolio, plus .85% of the Portfolio's average daily net assets in excess of $1 billion. The Management Fee in the above chart reflects the current Investment Management fee payable to the Investment Manager. 6 These portfolios commenced operations on August 31, 1999. "Other Expenses" are estimated amounts for the fiscal year ended December 31, 1999. 7 This portfolio commenced operations on September 30, 1999. "Other Expenses" are estimated amounts for the fiscal year ended December 31, 1999. 8 These portfolios commenced operations on October 18, 1999. "Other Expenses" are estimated amounts for the fiscal year ended December 31, 1999. EXPENSE EXAMPLES The Expense Examples shown below are being added with respect to the new Portfolios that are being offered as Sub-accounts under your Annuity as of October 18, 1999. The Expense Examples for the American Skandia Trust Portfolios shown below reflect the deemed 12b-1 fees (see Note 1 above).
- ------------------------------------------------------------------------------------------------------------------------------------ Expense Examples (amounts shown are rounded to the nearest dollar) - ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------- -- ------------------------------------------- If your initial Purchase Payment is at If your initial Purchase Payment is least $50,000 and at the beginning of below $50,000 and at the beginning of each Annuity Year your Account Value each Annuity Year your Account Value is is $50,000 or higher, so that the below $50,000, so that the maintenance maintenance fee does not apply: fee applies: ------------------------------------------- -- ------------------------------------------- After: After: - ------------------------------------------------------------------------------------------------------------------------------------ - ---------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ---------- Sub-Account: 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years --------- ---------- --------- ---------- ------ ---------- ---------- --------- ---------- - ---------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ---------- AST MFS Growth 2 19 59 101 218 20 63 108 231 AST MFS Growth with Income 2 19 58 100 217 20 62 107 230 AST MFS Global Equity 2 22 69 118 254 24 74 126 268 INVESCO VIF Technology 2 21 65 111 239 23 70 119 254 INVESCO VIF Health Sciences 2 20 61 105 227 21 65 111 238 INVESCO VIF Financial Services 2 19 60 103 223 21 65 111 238 INVESCO VIF Telecommunications 2 19 60 103 223 21 65 111 238 INVESCO VIF Dynamics 2 22 67 114 245 23 71 121 258 Evergreen VA Global Leaders 2 17 52 90 197 18 56 97 209 Evergreen VA Special Equity 2 17 52 90 197 18 56 97 209 ProFund VP Europe 2 25 76 130 277 26 81 138 291 ProFund VP SmallCap 2 24 74 127 270 26 79 134 284 ProFund VP UltraOTC 2 24 73 125 267 25 77 132 280 - ---------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ----------
The following underlying Portfolios are being added to the section entitled "What are the Investment Objective and Policies of the Portfolios?"
INVESTMENT OPTIONS WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS? - ------------------- ------------------------------------------------------------------------------------------------ --------------- PORTFOLIO STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/ TYPE SUB-ADVISOR - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- AST MFS Growth with Income: seeks reasonable current income and long-term capital growth and income. Under normal market conditions, the Portfolio invests at least 65% of its total assets in common stocks and related securities, GROWTH such as preferred stocks, convertible securities and Massachusetts & depositary receipts. The stocks in which the Portfolio Financial Services INCOME invests generally will pay dividends. While the Portfolio Company may invest in companies of any size, the Portfolio generally focuses on companies with larger market capitalizations that the Sub-advisor believes have sustainable growth prospects and attractive valuations based on current and expected earnings or cash flow. The Portfolio may invest up to 20% of its net assets in foreign securities. - ------------------- ------------------------------------------------------------------------------------------------ --------------- AST MFS Growth: seeks long-term capital growth and future income. Under normal market conditions, the Portfolio invests at least 80% of its total assets in common stocks and related securities, such as preferred stocks, GROWTH convertible securities and depositary receipts, of Massachusetts companies that the Sub-advisor believes offer better than Financial Services average prospects for long-term growth. The Sub-advisor Company seeks to purchase securities of companies that it considers well-run and poised for growth. The Portfolio may invest up to 30% of its net assets in foreign securities. - ------------------- ------------------------------------------------------------------------------------------------ --------------- INVESCO VIF Dynamics: seeks securities that will increase in value over the long term. The Portfolio invests in a variety of securities which are believed to present opportunities for capital growth - primarily common stocks MID-CAP of companies traded on U.S. securities exchanges, as well INVESCO Funds GROWTH as over-the-counter. The Portfolio also may invest in Group, Inc. preferred stocks and debt instruments that are convertible into common stocks, as well as in securities of foreign companies. In general, the Portfolio invests in securities of companies in industries that are growing globally and usually avoids stocks of companies in cyclical, mature or slow-growing industries or economic sectors. The Portfolio seeks to invest in stocks of leading companies in attractive markets or industries, or emerging leaders that have developed a new competitive advantage. - ------------------- ------------------------------------------------------------------------------------------------ --------------- ProFund VP SmallCap: seeks daily investment results that correspond to the performance of the Russell 2000(R) Index. The Portfolio principally invests in futures contracts on stock indexes and options on futures contracts and ProFund Advisors financial instruments such as equity caps, collars, floors LLC and options on securities and stock indexes of diverse, widely traded, small capitalization companies. Additionally, the Portfolio may invest in a combination of SMALL stocks that in the investment advisor's opinion should CAPITALIZATION simulate the movement of the Russell 2000(R) Index. ------------------------------------------------------------------------------------------------ --------------- Evergreen VA Special Equity: seeks capital growth. The Portfolio strives to provide a return greater than broad stock market indices such as the Russell 2000(R) Index by investing principally in a diversified portfolio of common stocks of domestic companies. The Portfolio's Investment Meridian Investment Adviser principally chooses companies which it expects will Company experience growth in earnings and price, and which have small market capitalizations (under $1 billion) and medium market capitalizations (between $1 billion and $5 billion). The Portfolio may also invest in companies that have large market capitalizations (over $5 billion). - ------------------- ------------------------------------------------------------------------------------------------ --------------- AST MFS Global Equity: seeks capital growth. Under normal market conditions, the Portfolio invests at least 65% of INTERNATIONAL its total assets in common stocks and related securities, Massachusetts EQUITY such as (including issuers in developing countries). The Financial Services Portfolio generally seeks to purchase securities of Company companies with relatively large market capitalizations relative to the market in which they are traded. - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- PORTFOLIO STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/ TYPE SUB-ADVISOR - ------------------- ------------------------------------------------------------------------------------------------ --------------- ProFund VP Europe: seeks daily investment results that correspond to the performance of the ProFunds Europe Index. The ProFunds Europe Index ("PEI") is a combined measure of European stock performance created by the Investment Advisor from the leading stock indexes of Europe's three largest economies giving equal weight to each index each day. The PEI averages the daily results of The Financial ProFund Advisors Times Stock Exchange 100, The Deutsche Aktienindex and the LLC CAC-40. The Portfolio principally invests in futures contracts on stock indexes and options on futures contracts INTERNATIONAL and financial instruments such as equity caps, collars, EQUITY floors and options on securities and stock indexes of large (Cont.) capitalization, widely traded, European stocks. The Portfolio invests in financial instruments with values that reflect the performance of stocks of European companies. ------------------------------------------------------------------------------------------------ --------------- Evergreen VA Global Leaders: seeks to provide investors with long-term capital growth. The Portfolio normally invests as least 65% of its assets in a diversified portfolio of U.S. and non-U.S. equity securities of companies located in the world's major industrialized Evergreen Asset countries. The Portfolio will invest in no less than three Management Corp. countries, which may include the U.S., but may invest more than 25% of its total assets in one country. The Portfolio invests only in the best 100 companies, which are selected by the investment advisor based on qualitative and quantitative criteria such as high return on equity, consistent earnings growth and established market presence. - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------------------------------------------------------------------------------------------------------------------------ Sector funds generally diversify their investments across particular economic sectors. However, because those investments are limited to a comparatively narrow segment of the economy, sector funds are generally not as diversified as most mutual funds. Sector funds tend to be more volatile than other types of funds. The value of fund shares may go up and down more rapidly than other funds. Each sector of the economy may also have different regulatory or other risk factors that can cause greater fluctuations in the share price. Please read the prospectus for the underlying sector fund for further details about the risks of the particular sector of the economy. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------- ------------------------------------------------------------------------------------------------ --------------- INVESCO VIF Technology: seeks capital appreciation. The Portfolio normally invests at least 80% of its total assets in the equity securities of companies engaged in technology-related industries. These include, but are not limited to, communications, computers, video, electronics, INVESCO Funds oceanography, office and factory automation, and robotics. Group, Inc. A core portion of the Portfolio's holdings are invested in market-leading technology companies which the Investment Advisor believes will maintain or improve their market share regardless of overall conditions. ------------------------------------------------------------------------------------------------ --------------- INVESCO VIF Health Sciences: seeks capital appreciation. The Portfolio invests at least 80% of its assets in the equity securities of companies that develop, produce or SECTOR distribute products or services related to health care. These industries include, but are not limited to, medical INVESCO Funds equipment or supplies, pharmaceuticals, health care Group, Inc. facilities, and applied research and development of new products or services. The Investment Advisor attempts to blend well-established healthcare firms with faster-growing, more dynamic health care companies, which have new products or are increasing their market share of existing products. ------------------------------------------------------------------------------------------------ --------------- INVESCO VIF Financial Services: seeks capital appreciation. The Portfolio normally invests at least 80% of its assets in the equity securities of companies involved in the financial services sector. This sector includes, among others, banks (regional and money-centers), insurance INVESCO Funds companies (life, property and casualty, and multiline), and Group, Inc. investment and miscellaneous industries (asset managers, brokerage firms, and government-sponsored agencies). The Investment Advisor seeks companies which it believes can grow their revenues and earnings regardless of the interest rate environment - although securities prices of financial services companies generally are interest rate-sensitive. - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- PORTFOLIO STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/ TYPE SUB-ADVISOR - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- INVESCO VIF Telecommunications: seeks capital appreciation. The Portfolio normally invests at least 80% of its assets in the equity securities of companies that are primarily engaged in the design, development, manufacture, distribution, or sale of communications services and SECTOR (Cont.) equipment, and companies that are involved in developing, INVESCO Funds constructing, or operating communications infrastructure Group, Inc. projects throughout the world, or in supplying equipment or services to such companies. The telecommunications sector includes companies that offer telephone services, wireless communications, satellite communications, television and movie programming and broadcasting. Normally, the Portfolio will invest at least 65% of its assets in companies located in at least three different countries, although U.S. issuers will often dominate the holdings. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ The ProFund VP UltraOTC portfolio is available to all Owners. However, it is recommended that only those Owners who engage a financial advisor to allocate their funds in strategic or tactical asset allocation strategies invest in this portfolio. There can be no assurance that any financial advisor will successfully predict market fluctuations. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------- ------------------------------------------------------------------------------------------------ --------------- ProFund VP UltraOTC: seeks daily investment results that correspond to twice (200%) the performance of the NASDAQ 100 Index(TM). The Portfolio principally invests in futures STRATEGIC contracts on stock indexes and options on futures contracts ProFund Advisors OR and financial instruments such as equity caps, collars, LLC TACTICAL floors and options on securities and stock indexes of large ALLOCATION capitalization companies. If the Portfolio is successful in meeting its objective, it should gain approximately twice as much as the growth oriented NASDAQ 100 Index(TM) when the prices of the securities in that index rise on a given day and should lose approximately twice as much when such prices decline on that day. - ------------------- ------------------------------------------------------------------------------------------------ ---------------
Portfolio/Sub-account Name Changes: Pursuant to a shareholder vote, portfolios of Life & Annuity Trust (LAT) are being reorganized into new portfolios of Wells Fargo Variable Trust (WFVT). Effective September 20, 1999, the name of the LAT Equity Value portfolio has changed to the WFVT Equity Value portfolio. Effective October 18, 1999, the name of the AST Bankers Trust Enhanced 500 portfolio has been changed to the AST Bankers Trust Managed Index 500 portfolio. The investment objective and policies of the portfolio are not changed. The following paragraph replaces the second paragraph in the section entitled "May I Authorize my Financial Representative to Manage my Account?" MAY I AUTHORIZE MY FINANCIAL REPRESENTATIVE TO MANAGE MY ACCOUNT? We may also establish different "cut-off times" by which we must receive all financial transactions for certain underlying portfolios. Currently, the portfolios of Rydex Variable Trust and ProFund VP are subject to this restriction. Financial transactions involving a Rydex or ProFund VP Sub-account must be received by us no later than one hour prior to any announced closing time of the applicable securities exchange (generally, 3:00 p.m. Eastern time) to be processed on the current Valuation Day. If you request a transaction involving the purchase or redemption of Units in one of the Rydex or ProFund VP Sub-accounts after the "cut-off" time, we will deem your request as received by us on the next Valuation Day. You may be required to submit a new request on the following day. The following paragraph replaces the sixth paragraph in the section entitled "When Do You Process and Value Transactions?" WHEN DO YOU PROCESS AND VALUE TRANSACTIONS? Transactions in Rydex and ProFund VP Sub-accounts: Any financial transactions involving the Rydex or ProFund VP Sub-accounts must be received by us no later than one hour prior to any announced closing of the applicable securities exchange (generally, 3:00 p.m. Eastern time) to be processed on the current Valuation Day. If you request a transaction involving the purchase or redemption of Units in one of the Rydex or ProFund VP Sub-accounts after the "cut-off" time, we will deem your request as received by us on the next Valuation Day. You may be required to submit a new request on the following day. APPENDIX C-1 - ADVISOR'S CHOICE PRIOR CONTRACT EXPENSE EXAMPLES The Expense Examples shown below are being added with respect to the new Portfolios that are being offered as Sub-accounts under your Annuity as of October 18, 1999. The Expense Examples for the American Skandia Trust Portfolios shown below reflect the deemed 12b-1 fees (see Note 1 above).
- ------------------------------------------------------------------------------------------------------------------------------------ Expense Examples (amounts shown are rounded to the nearest dollar) - ------------------------------------------------------------------------------------------------------------------------------------ There is no Contingent Deferred Sales Charge on withdrawals. Therefore, whether or not you surrender your Annuity at the end of the applicable time period or begin taking annuity payments at such time, you would pay the following expenses on a $1,000 investment, assuming 5% annual return on assets: ------------------------------------------- -- ------------------------------------------- If your initial Purchase Payment is at If your initial Purchase Payment is least $50,000 and at the beginning of below $50,000 and at the beginning of each Annuity Year your Account Value each Annuity Year your Account Value is is $50,000 or higher, so that the below $50,000, so that the maintenance maintenance fee does not apply: fee applies: ------------------------------------------- -- ------------------------------------------- After: After: - ------------------------------------------------------------------------------------------------------------------------------------ - ---------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ---------- Sub-Account: 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years --------- ---------- --------- ---------- ------ ---------- ---------- --------- ---------- - ---------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ---------- AST MFS Growth 2 19 59 101 218 20 63 108 231 AST MFS Growth with Income 2 19 58 100 217 20 62 107 230 AST MFS Global Equity 2 22 69 118 254 24 74 126 268 INVESCO VIF Technology 2 21 65 111 239 23 70 119 254 INVESCO VIF Health Sciences 2 20 61 105 227 21 65 111 238 INVESCO VIF Financial Services 2 19 60 103 223 21 65 111 238 INVESCO VIF Telecommunications 2 19 60 103 223 21 65 111 238 INVESCO VIF Dynamics 2 22 67 114 245 23 71 121 258 Evergreen VA Global Leaders 2 17 52 90 197 18 56 97 209 Evergreen VA Special Equity 2 17 52 90 197 18 56 97 209 ProFund VP Europe 2 25 76 130 277 26 81 138 291 ProFund VP SmallCap 2 24 74 127 270 26 79 134 284 ProFund VP UltraOTC 2 24 73 125 267 25 77 132 280 - ---------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ----------
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