-----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, LJjmGFbHLO4ZIwmqcJf+Fxt1KInV2aDxjdurlVGHZBRXi9gdRvmfbYM1gz9DRQHw ASepm16R4fvw1COwrT30ZQ== 0000881453-99-000148.txt : 19991018 0000881453-99-000148.hdr.sgml : 19991018 ACCESSION NUMBER: 0000881453-99-000148 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: 033-62953 FILM NUMBER: 99727239 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 ASL 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 T. Rowe Price International Equity 1.00% 0.25% 0% 1.25% N/A 1.25% AST Janus Overseas Growth 1.00% 0.27% 0% 1.27% N/A 1.27% AST Janus Small-Cap Growth 0.90% 0.22% 0.05% 1.17% N/A 1.17% 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(2) 0.90% 0.17% 0.08% 1.15% N/A 1.15% AST Neuberger Berman Mid-Cap Value(3) 0.90% 0.15% 0.19% 1.24% N/A 1.24% 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(4) 0.90% 0.24% 0.06% 1.20% N/A 1.20% 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 INVESCO Equity Income 0.75% 0.18% 0.04% 0.97% N/A 0.97% 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% 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% - ------------------------------------------ --------------- ------------- --------------- -------------- -------------- -------------
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 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. 3 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. 4 This portfolio commenced operations on October 18, 1999. "Other Expenses" are based on estimated amounts for the fiscal year ending 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) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------- 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: - ------------------------------------------------- - ---------------------------------------------- ---------- ----------- ---------- ----------- Sub-Account: 1 Year 3 Years 5 Years 10 Years ---------- ----------- ---------- - ---------------------------------------------- ---------- ----------- ---------- ----------- AST Marsico Capital Growth 27 83 141 298 AST Janus Overseas Growth 28 86 146 308 AST American Century Income & Growth 26 79 135 286 AST Lord Abbett Small Cap Value 28 87 148 311 AST Cohen & Steers Realty 29 89 151 318 AST MFS Growth 27 83 142 300 INVESCO VIF Technology 29 89 152 320 INVESCO VIF Health Sciences 28 86 146 308 - ---------------------------------------------- ---------- ----------- ---------- -----------
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 Cohen & Steers Realty: seeks to maximize total return through investment in real estate securities. The Portfolio pursues its investment objective by seeking, with approximately equal emphasis, capital growth and current Cohen & Steers REAL income. Under normal circumstances, the Portfolio will Capital Management, ESTATE invest substantially all of its assets in the equity Inc. (REIT) securities of real estate companies, i.e., a company that derives at least 50% of its revenues from the ownership, construction, financing, management or sale of real estate or that has at least 50% of its assets in real estate. Real estate companies may include real estate investment trusts or REITs. - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- AST American Century Income & Growth: seeks capital growth with current income as a secondary objective. The Portfolio invests primarily in common stocks that offer potential for GROWTH capital growth, and may, consistent with its investment American Century & objectives, invest in stocks that offer potential for Investment INCOME current income. The Sub-adviser utilizes a quantitative Management, Inc. management technique with a goal of building an equity portfolio that provides better returns than the S&P 500 Index without taking on significant additional risk and while attempting to create a dividend yield that will be greater than the S&P 500 Index. - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- PORTFOLIO STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/ TYPE SUB-ADVISOR - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------- ------------------------------------------------------------------------------------------------ --------------- 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, Massachusetts convertible securities and depositary receipts, of Financial Services companies that the Sub-advisor believes offer better than Company average prospects for long-term growth. The Sub-advisor 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. GROWTH ------------------------------------------------------------------------------------------------ --------------- AST Marsico Capital Growth: seeks capital growth. Income realization is not an investment objective and any income realized on the Portfolio's investments, therefore, will be incidental to the Portfolio's objective. The Portfolio will Marsico Capital pursue its objective by investing primarily in common Management, LLC stocks of larger, more established companies. In selecting investments for the Portfolio, the Sub-advisor uses an approach that combines "top down" economic analysis with "bottom up" stock selection. The "top down" approach identifies sectors, industries and companies that should benefit from the trends the Sub-advisor has observed. The Sub-advisor then looks for individual companies with earnings growth potential that may not be recognized by the market at large. This is called "bottom up" stock selection. - ------------------- ------------------------------------------------------------------------------------------------ --------------- AST Lord Abbett Small Cap Value: seeks long-term capital growth. The Portfolio will seek its objective through investments primarily in equity securities that are believed to be undervalued in the marketplace. The Lord, Abbett & Co. SMALL Portfolio primarily seeks companies that are small-sized, CAPITALIZATION based on the value of their outstanding stock. Specifically, under normal circumstances, at least 65% of the Portfolio's total assets will be invested in common stocks issued by smaller, less well-known companies (with market capitalizations of less than $1 billion) selected on the basis of fundamental investment analysis. The small capitalization companies in which the Portfolio primarily invests may offer significant appreciation potential. However, smaller companies may carry more risk than larger companies. - ------------------- ------------------------------------------------------------------------------------------------ --------------- AST Janus Overseas Growth: seeks long-term growth of capital. The Portfolio pursues its objective primarily INTERNATIONAL through investments in common stocks of issuers from at EQUITY least five different countries, excluding the United Janus Capital States. Securities are generally selected without regard to Corporation any defined allocation among countries, geographic regions or industry sectors, or other similar selection procedure. - ------------------- ------------------------------------------------------------------------------------------------ --------------- - ------------------------------------------------------------------------------------------------------------------------------------ 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 INVESCO Funds limited to, communications, computers, video, electronics, Group, Inc. oceanography, office and factory automation, and robotics. 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. SECTOR ---------------------------------------------------------------------------------------- ----------------------- 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 distribute products or services related to health care. INVESCO Funds These industries include, but are not limited to, medical Group, Inc. equipment or supplies, pharmaceuticals, health care 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. - ------------------- ------------------------------------------------------------------------------------------------ ---------------
The following information is being added to the section entitled "Appendix B - Condensed Financial Information About Separate Account B": Year Ended December 31, - ------------------------------------------------------------------------------------------------------------------------------------ 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 - ------------------------------------------------------------------------------------------------------------------------------------ AST Janus Overseas Growth (1997) Unit Price $13.41 11.70 - - - - - - - - Number of Units 43,711,763 21,405,891 - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ AST Lord Abbett Small Cap Value (1998) Unit Price $9.85 - - - - - - - - - Number of Units 4,081,870 - - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ AST Marsico Capital Growth (1997) Unit Price $14.00 10.03 - - - - - - - - Number of Units 40,757,449 714,309 - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ AST Cohen & Steers Realty (1998) Unit Price $8.28 - - - - - - - - - Number of Units 3,771,461 - - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------ AST American Century Income & Growth (1997) Unit Price $13.35 12.06 - - - - - - - - Number of Units 13,845,190 9,523,815 - - - - - - - - - ------------------------------------------------------------------------------------------------------------------------------------
WFVASL-SUPP. (10/18/99) -----END PRIVACY-ENHANCED MESSAGE-----