<PAGE> 1
AMERICAN SKANDIA
ADVISOR FUNDS
------------------------
American Skandia Advisor Funds, Inc.
ANNUAL REPORT TO SHAREHOLDERS
October 31, 1997
ASAF Founders International Small Capitalization Fund
ASAF T. Rowe Price International Equity Fund
ASAF Founders Small Capitalization Fund
ASAF T. Rowe Price Small Company Value Fund
ASAF Janus Capital Growth Fund
ASAF INVESCO Equity Income Fund
ASAF American Century Strategic Balanced Fund
ASAF Federated High Yield Bond Fund
ASAF Total Return Bond Fund
ASAF JPM Money Market Fund
<PAGE> 2
Letter to Shareholders
Thank you for your confidence in the American Skandia Advisor Funds. This has
been a particularly robust year for the mutual fund industry and our program of
multi-manager funds under a single roof has fared well. Since the funds
commenced operation on July 28, 1997, assets at fiscal year end grew to more
than $20,000,000 with weekly asset growth currently exceeding the $3,000,000
mark. When we consider that the ASAF program represents an innovative concept in
management -- a multi-manager family of world-class managers provided by
financial professionals -- we are gratified with the success.
In October, the third full month of activity for the American Skandia Advisor
Funds, stock mutual fund net inflows were $14.8 billion. In light of the market
correction that occurred, this figure suggests that the confidence in our
economy is truly sustainable. We continue to experience an American-led growth
in stock market confidence with broad investor participation in large and small
capitalization companies.
It is our hope that we can offer investors a broad range of investment
participation opportunities. To date we have brought together ten world-class
money management products including large and small company stock funds,
international investment opportunities, and fixed income strategies. It is our
intention to increase the offerings and expand the range of investment
strategies.
We welcome your questions and your comments. You can reach our Shareholder
Services Desk at 1-888-386-3484 or speak with your financial advisor.
/s/ Wade A. Dokken
- -------------------------
Wade A. Dokken
Chairman
American Skandia Investment Services, Incorporated
<PAGE> 3
AMERICAN SKANDIA ADVISOR FUNDS, INC.
SCHEDULES OF INVESTMENTS
OCTOBER 31, 1997
ASAF FOUNDERS INTERNATIONAL SMALL CAPITALIZATION FUND
ASAF FOUNDERS SMALL CAPITALIZATION FUND
ASAF T. ROWE PRICE SMALL COMPANY VALUE FUND
ASAF AMERICAN CENTURY STRATEGIC BALANCED FUND
ASAF FEDERATED HIGH YIELD BOND FUND
<PAGE> 4
- -------------------------------------------------------
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 54.2%
CANADA -- 5.8%
Cinar Films, Inc. Cl-B* 500 $ 19,438
Gulf Canada Resources
Ltd.* 2,000 16,750
--------
36,188
--------
CHILE -- 2.9%
Compania Cervecerias
Unidas SA [ADR] 750 18,281
--------
FINLAND -- 2.6%
Raision Tehtaat Oy* 150 16,256
--------
FRANCE -- 2.6%
Coflexip SA [ADR] 300 16,500
--------
GERMANY -- 2.4%
Porsche AG Pfd. 10 14,787
--------
HONG KONG -- 2.9%
Asia Satellite
Telecommunications
Holdings Ltd. [ADR] 775 18,116
--------
INDONESIA -- 3.0%
Gulf Indonesia
Resources Ltd. 900 18,900
--------
IRELAND -- 2.8%
Ryanair Holdings PLC SP
[ADR]* 700 17,500
--------
ITALY -- 2.9%
Industrie Natuzzi SPA
[ADR] 800 17,900
--------
MEXICO -- 2.9%
Grupo Iusacell [ADR]* 1,000 18,000
--------
NETHERLANDS -- 2.7%
Hunter Douglas NV 400 16,489
--------
NEW ZEALAND -- 2.8%
Tranz Rail Holdings
[ADR] 1,250 16,875
--------
NORWAY -- 2.8%
Petroleum Geo Services
[ADR] 250 17,312
--------
PANAMA -- 2.9%
Banco Latinoamericano
de Exportaciones SA
Cl-E 450 17,888
--------
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
SINGAPORE -- 2.9%
Creative Technology
Ltd. 700 $ 17,806
--------
SPAIN -- 2.8%
Tele Pizza SA* 250 17,181
--------
UNITED KINGDOM -- 6.5%
J.D. Wetherspoon PLC 750 20,311
JBA Holdings PLC 1,250 20,070
--------
40,381
--------
TOTAL FOREIGN STOCK
(Cost $345,159) 336,360
--------
COMMON STOCK -- 5.7%
APPAREL MANUFACTURERS -- 2.8%
Tefron Ltd.* 900 17,269
--------
TELECOMMUNICATIONS -- 2.9%
Cellular Communications
International, Inc.* 450 18,000
--------
TOTAL COMMON STOCK
(Cost $36,552) 35,269
--------
TOTAL INVESTMENTS -- 59.9%
(Cost $381,711) 371,629
OTHER ASSETS LESS
LIABILITIES -- 40.1% 249,177
--------
NET ASSETS -- 100.0% $620,806
========
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1997:
<TABLE>
<CAPTION>
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS UNREALIZED
MONTH TYPE RECEIVE FOR AT VALUE APPRECIATION
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/97 Buy GBP 12,273 $20,367 $20,580 $213
11/97 Buy GBP 11,858 19,676 19,883 207
------- ------- ----
$40,043 $40,463 $420
======= ======= ====
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all foreign stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
2
<PAGE> 5
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- -------------------------------------------------------
ASAF FOUNDERS
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 20.1%
BEVERAGES -- 0.3%
Beringer Wine Estates
Holdings, Inc.* 75 $ 2,325
--------
BUSINESS SERVICES -- 1.0%
Pre-Paid Legal
Services, Inc. 300 9,075
--------
COMPUTER SERVICES & SOFTWARE -- 7.8%
Aspen Technology, Inc. 300 11,287
Avant Corp.* 300 7,875
CDW Computers Centers,
Inc.* 200 12,400
Checkfree Corp.* 250 6,750
Documentum, Inc.* 325 9,709
Electronic Arts, Inc.* 200 6,775
HNC Software, Inc.* 300 11,100
Transaction Systems
Architects, Inc.* 100 3,913
--------
69,809
--------
CONSUMER PRODUCTS & SERVICES -- 0.1%
Vestcom International,
Inc. 50 906
--------
ELECTRONIC COMPONENTS & EQUIPMENT -- 1.8%
Concord EFS, Inc.* 300 8,906
Sanmina Corp.* 100 7,475
--------
16,381
--------
FOOD -- 1.1%
JP Foodservice, Inc.* 300 9,581
--------
HEALTHCARE
SERVICES -- 1.7%
Capital Senior Living
Corp. 475 7,956
FPA Medical Management,
Inc.* 300 7,238
--------
15,194
--------
HOTELS & MOTELS -- 1.2%
Capstar Hotel Co. 300 10,631
--------
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
MEDICAL SUPPLIES & EQUIPMENT -- 1.6%
Henry Schein, Inc.* 300 $ 9,863
Transition Systems,
Inc. 200 4,050
--------
13,913
--------
PHARMACEUTICALS -- 0.7%
R.P. Scherer Corp.* 100 5,888
--------
RESTAURANTS -- 0.9%
CKE Restaurants, Inc. 200 7,988
--------
RETAIL & MERCHANDISING -- 1.2%
Stage Stores, Inc.* 300 10,950
--------
TELECOMMUNICATIONS -- 0.7%
Echostar Communications
Corp. 150 2,850
REMEC, Inc.* 25 634
Smartalk Teleservices,
Inc.* 125 2,695
--------
6,179
--------
TOTAL COMMON STOCK
(Cost $180,836) 178,820
--------
SHORT-TERM INVESTMENTS -- 8.2%
Temporary Investment
Cash Fund 36,602 36,602
Temporary Investment
Fund 36,603 36,603
--------
(Cost $73,205) 73,205
--------
TOTAL INVESTMENTS -- 28.3%
(Cost $254,041) 252,025
OTHER ASSETS LESS
LIABILITIES -- 71.7% 637,058
--------
NET ASSETS -- 100.0% $889,083
========
</TABLE>
- -------------------------------------------------------
* Non-income producing securities.
See Notes to Financial Statements.
3
<PAGE> 6
- -------------------------------------------------------
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 83.2%
AIRLINES -- 1.1%
Midwest Express
Holdings, Inc.* 900 $ 28,912
--------
AUTOMOTIVE PARTS -- 2.3%
Modine Manufacturing
Co. 900 30,656
TBC Corp.* 2,600 26,650
--------
57,306
--------
BUILDING MATERIALS -- 7.1%
Giant Cement Holding,
Inc.* 900 21,825
Gibraltar Steel Corp.* 900 21,262
Holophane Corp.* 1,200 27,300
Juno Lighting, Inc. 1,300 23,400
Lone Star Technologies,
Inc.* 500 19,094
Republic Group, Inc. 1,000 18,750
Skyline Corp. 700 20,300
Thomas Industries, Inc. 900 27,000
--------
178,931
--------
BUSINESS SERVICES -- 1.0%
Grey Advertising, Inc. 70 24,045
--------
CHEMICALS -- 2.3%
Furon Co. 900 34,312
Schulman (A.), Inc. 1,000 22,500
--------
56,812
--------
CLOTHING & APPAREL -- 0.9%
Unitog Co. 900 22,275
--------
COMPUTER HARDWARE -- 1.2%
Analogic Corp. 800 29,600
--------
COMPUTER SERVICES & SOFTWARE -- 1.9%
Analysts International
Corp. 700 31,587
Pioneer Standard
Electronics, Inc. 1,000 16,375
--------
47,962
--------
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
CONSUMER PRODUCTS & SERVICES -- 1.1%
American Safety Razor
Co. 700 $ 11,550
Culp, Inc. 900 17,100
--------
28,650
--------
CONTAINERS & PACKAGING -- 2.1%
Aptargroup, Inc. 400 21,975
First Brands Corp. 1,200 30,600
--------
52,575
--------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.7%
Electro Rental Corp.* 1,500 54,562
Landauer, Inc. 600 15,150
Littelfuse, Inc.* 1,000 30,625
Nichols Research Corp.* 1,200 29,400
Scotsman Industries,
Inc. 500 13,219
--------
142,956
--------
ENTERTAINMENT & LEISURE -- 0.6%
Carmike Cinemas, Inc.* 500 16,250
--------
ENVIRONMENTAL SERVICES -- 0.2%
International
Technology Corp. 600 5,475
--------
EQUIPMENT
SERVICES -- 4.2%
Cort Business Services
Corp.* 600 21,825
Rival Co. 1,300 20,150
Unifirst Corp. 1,200 30,150
VWR Scientific
Products, Inc.* 1,500 33,000
--------
105,125
--------
FINANCIAL -- BANK & TRUST -- 4.6%
Commercial Federal
Savings & Loan Corp. 300 14,550
Community First Bank
Corp. 700 33,425
First Republic Bank 900 25,425
Silicon Valley
Bancshares* 400 21,850
Sirrom Capital Corp. 400 20,150
--------
115,400
--------
</TABLE>
4
<PAGE> 7
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
FINANCIAL
SERVICES -- 4.2%
Amresco, Inc.* 800 $ 25,100
First Financial Fund,
Inc. 1,000 22,062
McGrath Rentcorp 1,500 36,562
Medallion Financial
Corp. 1,000 21,000
--------
104,724
--------
FOOD -- 0.2%
Suiza Foods Corp.* 100 5,037
--------
INSURANCE -- 5.2%
FBL Financial Group,
Inc. Cl-A 900 35,663
Harleysville Group,
Inc. 700 17,850
Phoenix Resources Corp.
Cl-A 700 21,350
Poe & Brown, Inc. 1,000 41,250
Presidential Life Corp. 700 13,913
--------
130,026
--------
LUMBER & WOOD PRODUCTS -- 0.8%
Deltic Timber Corp. 700 19,731
--------
MACHINERY & EQUIPMENT -- 4.9%
Alamo Group, Inc. 700 14,700
Carbo Ceramics, Inc. 900 29,813
Greenfield Industries,
Inc. 400 15,150
Smith (A.O.) Corp. 700 29,006
Woodward Governor Co. 1,000 34,250
--------
122,919
--------
MEDICAL SUPPLIES & EQUIPMENT -- 1.8%
Lunar Corp. 1,600 30,500
Owens & Minor, Inc. 1,000 14,000
--------
44,500
--------
METALS & MINING -- 5.6%
Cambior, Inc. 1,200 9,450
Dayton Mining Corp.* 2,100 5,250
Golden Star Resources
Ltd.* 1,500 6,750
Layne Christensen, Inc. 900 17,888
Material Sciences
Corp.* 1,400 20,825
Myers Industries, Inc. 1,200 21,075
Penn Virginia Corp. 900 25,650
Prime Resources Group,
Inc. 2,600 17,225
TriMas Corp. 600 17,550
--------
141,663
--------
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT -- 1.7%
Aaron Rents, Inc. Cl-A* 500 $ 8,687
Aaron Rents, Inc. Cl-B* 900 15,188
IDEX Corp.* 600 20,175
--------
44,050
--------
OIL & GAS -- 3.2%
Cross Timbers Oil Co. 1,500 40,031
Devon Energy Corp. 300 13,425
Rutherford-Moran Oil
Corp.* 1,100 26,950
--------
80,406
--------
PAPER & FOREST PRODUCTS -- 1.8%
CSS Industries, Inc.* 800 28,300
Mosinee Paper 600 16,950
--------
45,250
--------
PERSONAL SERVICES -- 1.0%
Matthews International
Corp. 600 25,500
--------
</TABLE>
5
<PAGE> 8
- -------------------------------------------------------
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 6.3%
Allied Capital
Commercial Corp.
[REIT] 1,000 $ 27,875
Apartment Investment &
Management Co. Cl-A
[REIT] 700 24,806
CCA Prison Realty Trust
[REIT] 500 17,250
Glenborough Realty
Trust, Inc. [REIT] 400 10,250
Innkeepers USA Trust
[REIT] 1,200 20,025
National Health
Investors, Inc.
[REIT] 600 23,513
Post Properties, Inc
[REIT] 400 14,475
Sun Communities, Inc.
[REIT] 600 20,925
--------
159,119
--------
RESTAURANTS -- 3.0%
Consolidated Products,
Inc.* 1,300 25,025
Ruby Tuesday, Inc. 1,300 35,344
Sbarro, Inc. 600 15,863
--------
76,232
--------
RETAIL & MERCHANDISING -- 5.0%
Carson Pirie Scott &
Co. 400 19,275
Casey's General Stores,
Inc. 900 21,712
Compucom Systems, Inc.* 2,200 20,763
Fabri-Centers of
America, Inc. Cl-B* 1,500 30,469
Hancock Fabrics, Inc. 1,200 16,275
Stein Mart, Inc.* 600 17,550
--------
126,044
--------
TELECOMMUNICATIONS -- 1.5%
Aliant Communications,
Inc. 1,000 25,625
Mosiax, Inc. 1,200 11,100
--------
36,725
--------
UTILITIES -- 0.7%
United Water
Resources, Inc. 1,000 16,563
--------
TOTAL COMMON STOCK
(Cost $2,122,380) 2,090,763
--------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000)
------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 20.3%
Federal Home Loan
Mortgage Corp.
5.41%, 11/12/97 $ 50 49,917
5.41%, 11/13/97 76 75,863
5.51%, 11/13/97 191 190,649
5.40%, 11/28/97 88 87,644
5.42%, 11/28/97 60 59,756
------------
463,829
------------
Federal National Mortgage
Association
5.47%, 11/06/97 46 45,965
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $509,794) 509,794
------------
U.S. TREASURY OBLIGATIONS -- 1.6%
U.S. Treasury Bills
4.30%, 11/06/97 27 26,984
4.87%, 12/18/97 13 12,917
------------
(Cost $39,901) 39,901
------------
TOTAL INVESTMENTS -- 105.1%
(Cost $2,672,075) 2,640,458
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (5.1%) (127,352)
------------
NET ASSETS -- 100.0% $2,513,106
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
6
<PAGE> 9
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- -------------------------------------------------------
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 48.4%
ADVERTISING -- 1.7%
Outdoor Systems, Inc. 700 $ 21,525
--------
AEROSPACE -- 0.5%
BE Aerospace, Inc. 200 5,625
--------
BROADCASTING -- 1.6%
Clear Channel
Communications, Inc. 300 19,800
--------
COMPUTER HARDWARE -- 2.6%
Compaq Computer Corp. 200 12,750
International Business
Machines Corp. 200 19,612
--------
32,362
--------
COMPUTER SERVICES & SOFTWARE -- 4.7%
BMC Software, Inc.* 200 12,075
Cisco Systems, Inc.* 200 16,406
Compuware Corp. 300 19,837
Oracle Corp. 100 3,578
Sun Microsystems, Inc. 200 6,850
--------
58,746
--------
CONGLOMERATES -- 3.3%
Philip Morris Companies,
Inc. 100 3,962
Tyco International Ltd. 1,000 37,750
--------
41,712
--------
CONSUMER PRODUCTS & SERVICES -- 5.3%
Avon Products, Inc. 200 13,100
Gillette Co. 100 8,906
Procter & Gamble Co. 200 13,600
Samsonite Corp. 400 18,550
Sunbeam Oster Corp. 100 4,531
U.S. Industries, Inc. 300 8,063
--------
66,750
--------
ELECTRONIC COMPONENTS & EQUIPMENT -- 6.1%
Altera Corp. 200 8,875
Electronics for Imaging,
Inc.* 200 9,350
<CAPTION>
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
General Electric Co. 400 $ 25,825
KLA Instruments Corp. 200 8,788
Philips Electronics NV
[ADR] 300 23,513
--------
76,351
--------
ENVIRONMENTAL SERVICES -- 0.9%
USA Waste Services, Inc. 300 11,100
--------
FINANCIAL -- BANK & TRUST -- 2.6%
BankAmerica Corp. 200 14,300
Charter One Financial,
Inc. 105 6,103
Citicorp 100 12,506
--------
32,909
--------
FINANCIAL SERVICES -- 0.4%
Fannie Mae 100 4,844
--------
HEALTHCARE SERVICES -- 0.2%
Oxford Health Plans, Inc. 100 2,581
--------
INSURANCE -- 2.4%
Conseco, Inc. 400 17,450
SunAmerica, Inc. 350 12,578
--------
30,028
--------
OIL & GAS -- 5.6%
Diamond Offshore
Drilling, Inc. 200 12,450
Evi, Inc. 200 12,838
Falcon Drilling Co., Inc. 600 21,825
Global Marine, Inc. 200 6,225
Input-Output, Inc. 600 16,088
--------
69,426
--------
PHARMACEUTICALS -- 8.8%
Bristol-Meyers Squibb Co. 200 17,550
Cardinal Health, Inc. 100 7,425
Lilly (Eli) & Co. 400 26,750
Merck & Co., Inc. 100 8,925
Pfizer, Inc. 300 21,225
Warner-Lambert Co. 200 28,638
--------
110,513
--------
</TABLE>
7
<PAGE> 10
=======================================================
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
SEMI-CONDUCTORS -- 1.7%
Intel Corp. 200 $ 15,400
Motorola, Inc. 100 6,175
--------
21,575
--------
TOTAL COMMON STOCK
(Cost $614,751) 605,847
--------
FOREIGN STOCK -- 0.8%
BEVERAGES
Panamerican Beverages,
Inc. Cl-A -- (MXP)
(Cost $10,780) 300 9,356
--------
PAR
(000)
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 16.0%
Federal Home Loan Bank
5.50%, 11/03/97
(Cost $199,939) $200 199,939
--------
U.S. TREASURY OBLIGATIONS -- 24.1%
U.S. Treasury Notes
6.00%, 07/31/02 100 100,890
5.875%, 09/30/02 200 200,874
--------
(Cost $298,652) 301,764
--------
SHARES
------
SHORT-TERM INVESTMENTS -- 2.5%
Temporary Investment Cash
Fund 15,716 15,716
Temporary Investment Fund 15,717 15,717
--------
(Cost $31,433) 31,433
--------
TOTAL INVESTMENTS -- 91.8%
(Cost $1,155,555) 1,148,339
OTHER ASSETS LESS LIABILITIES -- 8.2% 102,989
--------
NET ASSETS -- 100.0% $ 1,251,328
===========
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all foreign stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
ASAF FEDERATED HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
CORPORATE OBLIGATIONS -- 80.8%
AUTOMOTIVE PARTS -- 1.4%
Lear Corp. Sub. Notes
9.50%, 07/15/06 $ 50 $ 54,750
----------
BROADCASTING -- 8.0%
Chancellor Media Corp.
Sr. Sub. Notes 144A
8.75%, 06/15/07 50 50,375
Fox Liberty Networks
LLC, Sr. Notes [STEP]
144A
9.553%, 08/15/07 75 47,625
Frontiervision Holdings
[STEP] 144A
11.005%, 09/15/07 75 51,375
Outdoor Systems, Inc.
Sr. Sub. Notes
8.875%, 06/15/07 50 51,750
SFX Broadcasting, Inc.
Sr. Sub. Notes
10.75%, 05/15/06 50 54,500
Sinclair Broadcasting
Group Sr. Sub. Notes
10.00%, 09/30/05 50 52,625
----------
308,250
----------
BUILDING MATERIALS -- 1.4%
American Builders Sr.
Sub. Notes 144A
10.625%, 05/15/07 50 52,250
----------
CHEMICALS -- 2.7%
ISP Holdings, Inc. Sr.
Notes Cl-B
9.00%, 10/15/03 50 52,125
Polymer Group Holdings
Sr. Sub. Notes 144A
9.00%, 07/01/07 50 50,250
----------
102,375
----------
</TABLE>
8
<PAGE> 11
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
CLOTHING & APPAREL -- 2.7%
Dyersburg Corp. Sr. Sub.
Notes 144A
9.75%, 09/01/07 $ 50 $ 51,750
Pillowtex Corp. Sr. Sub.
Notes
10.00%, 11/15/06 50 52,875
----------
104,625
----------
CONSUMER PRODUCTS & SERVICES -- 2.6%
NBTY, Inc. Sr. Sub.
Notes 144A
8.625%, 09/15/07 50 49,250
Simmons Co. Sr. Sub.
Notes 10.75%, 04/15/06 50 51,750
----------
101,000
----------
COMPUTER SERVICES & SOFTWARE -- 1.4%
DecisionOne Corp. Sr.
Sub. Notes
9.75%, 08/01/07 50 51,750
----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 2.8%
Amphenol Corp. Sr. Sub.
Notes
9.875%, 05/15/07 50 52,750
Fairchild Semiconductor
Sr. Sub. Notes 144A
10.125%, 03/15/07 50 53,000
----------
105,750
----------
ENTERTAINMENT & LEISURE -- 2.7%
Livent, Inc.
Sr. Notes 144A
9.375%, 10/15/04 50 50,625
Six Flags Theme Parks
Sr. Sub. Notes Cl-A
[STEP]
9.746%, 06/15/05 50 53,000
----------
103,625
----------
ENVIROMENTAL SERVICES -- 1.3%
Allied Waste Industries
Sr. Disc. Notes Cl-A
[STEP]
9.753%, 06/01/07 75 51,375
----------
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
FARMING & AGRICULTURE -- 1.4%
Dimon, Inc. Sr. Notes
8.875%, 06/01/06 $ 50 $ 53,625
----------
FINANCIAL -- BANK & TRUST -- 1.4%
First Nationwide
Holdings Sr. Notes
12.25%, 05/15/01 50 55,000
----------
FOOD -- 6.7%
Ameriserve Food
Distributor Sr. Notes
144A
8.875%, 10/15/06 50 50,250
Aurora Foods, Inc. Cl-B
Sr. Sub. Notes
9.875%, 02/15/07 50 51,750
Community Distributors
Sr. Notes 144A
10.25%, 10/15/04 50 50,250
Jitney-Jungle Stores Sr.
Sub. Notes 144A
10.375%, 09/15/07 50 52,250
Stater Bros. Holdings
Sr. Sub. Notes 144A
9.00%, 07/01/04 50 51,125
----------
255,625
----------
FURNITURE -- 1.3%
Falcon Building Products
Sr. Sub. Notes [STEP]
10.077%, 06/15/07 75 48,375
----------
HEALTHCARE SERVICES -- 1.3%
Tenet Healthcare Corp.
Sr. Sub. Notes
8.00%, 01/15/05 50 50,750
----------
INDUSTRIAL PRODUCTS -- 2.7%
MMI Products, Inc. Sr.
Sub. Notes Cl-B
11.25%, 04/15/07 50 54,750
Playtex Products, Inc.
Cl-B Sr. Notes
8.875%, 07/15/04 50 50,125
----------
104,875
----------
</TABLE>
9
<PAGE> 12
- -------------------------------------------------------
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
MACHINERY & EQUIPMENT -- 1.4%
Clark Materials Handling
Sr. Notes
10.75%, 11/15/06 $ 50 $ 52,750
----------
METALS & MINING -- 1.4%
Ryerson Tull, Inc. Notes
8.50%, 07/15/01 50 51,875
----------
OIL & GAS -- 2.7%
Abraxas Petroleum Corp.
Sr. Notes Cl-B
11.50%, 11/01/04 50 55,000
Forcenergy, Inc. Sr.
Sub. Notes
8.50%, 02/15/07 50 49,750
----------
104,750
----------
PAPER & FOREST PRODUCTS -- 1.3%
Buckeye Cellulose Corp.
Sr. Sub. Notes
9.25%, 09/15/08 50 51,250
----------
PRINTING & PUBLISHING -- 2.7%
Garden State Newspaper
Sr. Sub. Notes 144A
8.75%, 10/01/09 50 49,750
Hollinger International
Publishing Co. Notes
9.25%, 03/15/07 50 51,750
----------
101,500
----------
TELECOMMUNICATIONS -- 25.5%
Cablevision Systems
Corp. Sr. Sub. Debs.
9.875%, 02/15/13 50 53,625
Call-Net Enterprises,
Inc. Sr. Disc. Notes
[STEP]
8.787%, 08/15/07 75 50,625
Comcast Cellular Sr.
Notes 144A
9.50%, 05/01/07 50 52,000
Echostar Satellite
Broadcasting Co. Sr.
Disc. Notes [STEP]
11.520%, 03/15/04 75 60,375
Hermes Europe Railtel
Sr. Notes 144A
11.50%, 08/15/07 50 54,750
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
Intermedia
Communications Sr.
Notes 144A
8.875%, 11/01/07 $ 50 $ 49,125
International Cabletel,
Inc. Sr. Notes [STEP]
10.118%, 10/15/03 75 70,219
McLeod, Inc. [STEP] 144A
9.497%, 03/01/07 75 52,125
Metronet Communications
Sr. Disc. Notes [STEP]
144A
10.696%, 11/01/07 75 44,625
Nextel Communications,
Inc. Sr. Disc.
Notes [STEP] 144A
11.267%, 09/15/07 75 42,937
Paging Network, Inc. Sr.
Sub. Notes
10.00%, 10/15/08 50 51,250
Pegasus Communications
Sr. Notes 144A
9.625%, 10/15/05 50 50,375
Qwest Communications
International Sr.
Disc. Notes [STEP]
9.236%, 10/15/07 75 48,375
Rogers Cablesystems Sr.
Notes
10.00%, 03/15/05 50 54,500
Source Media, Inc. Sr.
Secured Notes 144A
12.00%, 11/01/04 50 50,250
Teleport Communications
Group, Inc. Sr. Disc.
Notes [STEP]
9.065%, 07/01/07 75 59,250
Telesystem International
Sr. Disc. Notes [STEP]
11.831%, 11/01/07 50 26,750
</TABLE>
10
<PAGE> 13
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
Telewest PLC Debs.
[STEP]
10.583%, 10/01/07 $ 75 $ 56,625
Viacom, Inc. Sub. Debs.
8.00%, 07/07/06 50 49,500
----------
977,281
----------
TRANSPORTATION -- 4.0%
Allied Holdings Sr.
Notes 144A
9.625%, 10/01/07 50 51,250
Ameritruck Distribution
Sr. Sub. Notes
12.25%, 11/15/05 50 53,000
Stena AB Sr. Notes
8.75%, 06/15/07 50 50,375
----------
154,625
----------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,122,878) 3,098,031
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 33.7%
Student Loan Marketing
Association
5.63%, 11/03/97
(Cost $1,294,595) 1,295 1,294,595
----------
TOTAL INVESTMENTS -- 114.5%
(Cost $4,417,473) 4,392,626
LIABILITES IN EXCESS OF OTHER
ASSETS -- (14.5%) (556,167)
----------
NET ASSETS -- 100.0% $ 3,836,459
==========
</TABLE>
- -------------------------------------------------------
144A -- Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers. At the end of the period, these securities
amounted to 30.2% of net assets.
Definitions of abbreviations are included following the Schedules of
Investments.
DEFINITION OF ABBREVIATIONS
-------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED THROUGHOUT THE SCHEDULES OF INVESTMENTS:
SECURITY DESCRIPTIONS:
<TABLE>
<S> <C> <C>
ADR -- American Depositary Receipt
REIT -- Real Estate Investment Trust
STEP -- Stepped Coupon Bond (Rates shown are the
effective yields at purchase date.)
COUNTRIES/CURRENCIES:
GBP -- United Kingdom/British Pound
MXP -- Mexico/Mexican Peso
</TABLE>
See Notes to Financial Statements.
11
<PAGE> 14
OCTOBER 31, 1997
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF T.
ROWE PRICE ASAF INVESCO ASAF TOTAL ASAF JPM
INTERNATIONAL ASAF JANUS EQUITY RETURN MONEY
EQUITY CAPITAL GROWTH INCOME BOND MARKET
FUND FUND FUND FUND FUND
========== ========== ========== ========== ==========
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Corresponding
Portfolios of American Skandia
Master Trust $ 1,554,547 $4,341,577 $3,302,881 $1,180,008 $1,549,626
Receivable for Fund Shares Sold 72,365 309,545 500,856 56,002 176,021
Deferred Organization Costs 62,074 62,074 62,074 62,074 62,074
Prepaid Expenses 16,861 16,862 16,861 16,862 16,861
---------- ---------- ---------- ---------- ----------
Total Assets 1,705,847 4,730,058 3,882,672 1,314,946 1,804,582
---------- ---------- ---------- ---------- ----------
LIABILITIES:
Payable for Investments Purchased
in Corresponding Portfolios of
American Skandia Master Trust 72,365 309,545 500,856 56,002 176,021
Payable to Investment Manager 58,494 44,211 56,470 62,853 50,608
Payable For:
Distribution Fees 708 2,015 1,342 495 917
Accrued Expenses 13,099 23,938 15,407 11,887 17,930
Accrued Dividends -- -- -- 32 575
---------- ---------- ---------- ---------- ----------
Total Liabilities 144,666 379,709 574,075 131,269 246,051
---------- ---------- ---------- ---------- ----------
NET ASSETS $ 1,561,181 $4,350,349 $3,308,597 $1,183,677 $1,558,531
========== ========== ========== ========== ==========
COMPONENTS OF NET ASSETS
Capital Stock (40 Million Shares
Authorized, $.001 Par Value Per Share) $ 171 $ 419 $ 317 $ 116 $ 1,558
Additional Paid-In Capital 1,626,481 4,450,123 3,302,372 1,169,070 1,556,948
Undistributed Net Investment Income -- 7,214 7,857 2,363 --
Accumulated Net Realized Gain
(Loss) on Investments -- (38,807) (13,204) 288 25
Net Unrealized Appreciation
(Depreciation) on Investments (65,471) (68,600) 11,255 11,840 --
---------- ---------- ---------- ---------- ----------
NET ASSETS $ 1,561,181 $4,350,349 $3,308,597 $1,183,677 $1,558,531
========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
12
<PAGE> 15
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF T.
ROWE PRICE ASAF INVESCO ASAF TOTAL ASAF JPM
INTERNATIONAL ASAF JANUS EQUITY RETURN MONEY
EQUITY CAPITAL GROWTH INCOME BOND MARKET
FUND FUND FUND FUND FUND
========== ========== ========== ========== ========
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE:
Class A: Net Assets $ 217,613 $ 706,248 $ 471,489 $ 61,228 $307,020
-------- ---------- ---------- -------- --------
Shares Outstanding 24,367 61,945 45,136 5,957 307,013
-------- ---------- ---------- -------- --------
Net Asset Value and Redemption
Price Per Share $ 8.93 $ 11.40 $ 10.45 $ 10.28 $ 1.00
======== ========== ========== ======== ========
Divided by (1 - Maximum
Sales Charge) 95% 95% 95% 95 3/4% 95%
-------- ---------- ---------- -------- --------
Offering Price Per Share* $ 9.40 $ 12.00 $ 11.00 $ 10.74 $ 1.05
======== ========== ========== ======== ========
Class B: Net Assets $ 389,532 $1,718,239 $1,407,565 $547,245 $353,587
-------- ---------- ---------- -------- --------
Shares Outstanding 42,527 168,580 134,663 53,862 353,584
-------- ---------- ---------- -------- --------
Net Asset Value, Offering and
Redemption Price Per Share $ 9.16 $ 10.19 $ 10.45 $ 10.16 $ 1.00
======== ========== ========== ======== ========
Class C: Net Assets $ 198,033 $ 451,731 $ 255,047 $164,940 $331,509
-------- ---------- ---------- -------- --------
Shares Outstanding 21,624 44,352 24,377 16,234 331,503
-------- ---------- ---------- -------- --------
Net Asset Value, Offering and
Redemption Price Per Share $ 9.16 $ 10.19 $ 10.46 $ 10.16 $ 1.00
======== ========== ========== ======== ========
Class X: Net Assets $ 756,003 $1,474,131 $1,174,496 $410,264 $566,415
-------- ---------- ---------- -------- --------
Shares Outstanding 82,390 144,484 112,383 40,334 566,406
-------- ---------- ---------- -------- --------
Net Asset Value, Offering and
Redemption Price Per Share $ 9.18 $ 10.20 $ 10.45 $ 10.17 $ 1.00
======== ========== ========== ======== ========
</TABLE>
* On sales of $50,000 or more, the offering price of Class A shares is reduced.
See Notes to Financial Statements.
13
<PAGE> 16
OCTOBER 31, 1997
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN
SMALL SMALL PRICE SMALL CENTURY STRATEGIC ASAF FEDERATED
CAPITALIZATION CAPITALIZATION COMPANY VALUE BALANCED HIGH YIELD BOND
FUND FUND FUND FUND FUND
=============== ============== ============= ================= ===============
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Securities
at Value (A) $371,629 $ 252,025 $ 2,640,458 $ 1,148,339 $ 4,392,626
Cash 274,407 675,427 1,816 -- --
Receivable For:
Dividends and Interest 440 237 858 2,841 50,472
Fund Shares Sold 28,621 34,340 164,488 91,481 259,813
Deferred Organization Costs 65,504 65,504 65,504 65,504 65,504
Prepaid Expenses 16,861 16,861 16,751 16,861 16,932
Unrealized Appreciation
on Foreign Currency
Exchange Contracts 420 -- -- -- --
-------- -------- ---------- ---------- ----------
Total Assets 757,882 1,044,394 2,889,875 1,325,026 4,785,347
-------- -------- ---------- ---------- ----------
LIABILITIES:
Cash Overdraft -- -- -- -- 11,265
Payable to Investment Manager 69,792 69,458 61,401 54,095 69,208
Payable For:
Securities Purchased 57,276 75,826 300,018 -- 856,379
Distribution Fees 315 450 1,098 725 1,000
Accrued Expenses 9,693 9,577 14,252 18,878 10,826
Accrued Dividends -- -- -- -- 210
-------- -------- ---------- ---------- ----------
Total Liabilities 137,076 155,311 376,769 73,698 948,888
-------- -------- ---------- ---------- ----------
NET ASSETS $620,806 $ 889,083 $ 2,513,106 $ 1,251,328 $ 3,836,459
======== ======== ========== ========== ==========
COMPONENTS OF NET ASSETS
Capital Stock
(40 Million Shares Authorized,
$.001 Par Value Per Share) $ 63 $ 89 $ 241 $ 125 $ 387
Additional Paid-In Capital 630,425 891,010 2,544,097 1,257,177 3,865,102
Undistributed Net
Investment Income 819 -- 422 2,252 --
Accumulated Net Realized Loss
on Investments (287) -- (37) (1,010) (4,183)
Net Unrealized Depreciation
on Investments (10,214) (2,016) (31,617) (7,216) (24,847)
-------- -------- ---------- ---------- ----------
NET ASSETS $620,806 $ 889,083 $ 2,513,106 $ 1,251,328 $ 3,836,459
======== ======== ========== ========== ==========
(A) Investments at Cost $381,711 $ 254,041 $ 2,672,075 $ 1,155,555 $ 4,417,473
======== ======== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
14
<PAGE> 17
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN
SMALL SMALL PRICE SMALL CENTURY STRATEGIC ASAF FEDERATED
CAPITALIZATION CAPITALIZATION COMPANY VALUE BALANCED HIGH YIELD BOND
FUND FUND FUND FUND FUND
============== ============== ============= ================= ===============
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE:
Class A: Net Assets $106,130 $192,625 $ 383,129 $ 256,937 $ 2,154,283
---------- -------- ---------- -------- ----------
Shares Outstanding 10,754 19,369 36,628 25,713 217,045
---------- -------- ---------- -------- ----------
Net Asset Value and
Redemption Price
Per Share $ 9.87 $ 9.94 $ 10.46 $ 9.99 $ 9.93
========== ======== ========== ======== ==========
Divided by
(1 - Maximum
Sales Charge) 95% 95% 95% 95% 95 3/4%
---------- -------- ---------- -------- ----------
Offering Price Per
Share* $ 10.39 $ 10.46 $ 11.01 $ 10.52 $ 10.37
========== ======== ========== ======== ==========
Class B: Net Assets $229,911 $353,330 $ 1,154,678 $ 381,263 $ 919,855
---------- -------- ---------- -------- ----------
Shares Outstanding 23,338 35,569 110,634 38,280 92,647
---------- -------- ---------- -------- ----------
Net Asset Value, Offering
and Redemption Price
Per Share $ 9.85 $ 9.93 $ 10.44 $ 9.96 $ 9.93
========== ======== ========== ======== ==========
Class C: Net Assets $ 78,777 $ 73,511 $ 335,291 $ 215,307 $ 206,161
---------- -------- ---------- -------- ----------
Shares Outstanding 7,992 7,397 32,093 21,576 20,764
---------- -------- ---------- -------- ----------
Net Asset Value, Offering
and Redemption Price
Per Share $ 9.86 $ 9.94 $ 10.45 $ 9.98 $ 9.93
========== ======== ========== ======== ==========
Class X: Net Assets $205,988 $269,617 $ 640,008 $ 397,821 $ 556,160
---------- -------- ---------- -------- ----------
Shares Outstanding 20,943 27,154 61,282 39,956 56,021
---------- -------- ---------- -------- ----------
Net Asset Value, Offering
and Redemption Price
Per Share $ 9.84 $ 9.93 $ 10.44 $ 9.96 $ 9.93
========== ======== ========== ======== ==========
</TABLE>
* On sales of $50,000 or more, the offering price of Class A shares is reduced.
See Notes to Financial Statements.
15
<PAGE> 18
FOR THE PERIOD ENDED OCTOBER 31, 1997
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF
T. ROWE PRICE ASAF INVESCO
INTERNATIONAL ASAF JANUS EQUITY ASAF TOTAL ASAF JPM
EQUITY CAPITAL GROWTH INCOME RETURN BOND MONEY MARKET
FUND(1) FUND(1) FUND(2) FUND(2) FUND(3)
============= ============== ============ =========== ============
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Investment Income from Corresponding
Portfolios of American Skandia
Master Trust
Interest $ 1,244 $ 5,249 $ 5,732 $ 4,907 $ 8,266
Dividends 1,525 8,607 5,883 -- --
Foreign Taxes Withheld (199) -- -- -- --
-------- -------- ------- ------- -------
Total Investment Income 2,570 13,856 11,615 4,907 8,266
Expenses from Corresponding
Portfolios of American Skandia
Master Trust (4,835) (5,702) (3,680) (1,812) (6,082)
-------- -------- ------- ------- -------
Net Investment Income (Loss)
from Corresponding Portfolios
of American Skandia Master
Trust (2,265) 8,154 7,935 3,095 2,184
-------- -------- ------- ------- -------
EXPENSES:
Shareholder Servicing Fees 3,517 3,017 3,297 3,557 3,418
Administration and Accounting Fees 1,500 1,500 1,500 1,500 1,500
Distribution Fees -- Class A 118 357 199 46 195
Distribution Fees -- Class B 267 1,064 718 274 364
Distribution Fees -- Class C 122 273 136 74 319
Distribution Fees -- Class X 516 1,125 677 379 598
Professional Fees 3,109 7,212 3,735 2,445 4,771
Organization Costs 2,539 2,539 2,539 2,539 2,539
Directors' Fees and Expenses 3,421 8,376 4,518 2,705 5,273
Registration Fees 25,943 25,611 25,912 25,970 25,873
Printing Expenses 4,110 9,738 5,200 3,200 6,218
Miscellaneous Expenses 831 2,000 1,061 631 1,262
-------- -------- ------- ------- -------
Total Expenses 45,993 62,812 49,492 43,320 52,330
-------- -------- ------- ------- -------
Less: Reimbursement of Expenses
by Investment Manager (47,976) (61,872) (49,414) (43,617) (55,266)
-------- -------- ------- ------- -------
Net Investment Income (Loss) (282) 7,214 7,857 3,392 5,120
-------- -------- ------- ------- -------
</TABLE>
See Notes to Financial Statements.
16
<PAGE> 19
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF
T. ROWE PRICE ASAF INVESCO
INTERNATIONAL ASAF JANUS EQUITY ASAF TOTAL ASAF JPM
EQUITY CAPITAL GROWTH INCOME RETURN BOND MONEY MARKET
FUND(1) FUND(1) FUND(2) FUND(2) FUND(3)
============= ============== ============= =========== ============
<S> <C> <C> <C> <C> <C>
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS FROM CORRESPONDING
PORTFOLIOS OF AMERICAN SKANDIA MASTER
TRUST:
Net Realized Gain (Loss) on:
Securities 91 (38,807) (13,204) 288 25
Foreign Currency Transactions (674) -- -- -- --
-------- -------- ------- ------- -------
Net Realized Gain (Loss) on
Investments (583) (38,807) (13,204) 288 25
-------- -------- ------- ------- -------
Net Change in Unrealized
Appreciation (Depreciation) on:
Securities (64,782) (68,600) 11,255 11,840 --
Translation of Assets and
Liabilities Denominated in
Foreign Currencies (689) -- -- -- --
-------- -------- ------- ------- -------
Net Change in Unrealized
Appreciation (Depreciation) on
Investments (65,471) (68,600) 11,255 11,840 --
-------- -------- ------- ------- -------
Net Gain (Loss) on Investments (66,054) (107,407) (1,949) 12,128 25
-------- -------- ------- ------- -------
Net Increase (Decrease) in Net
Assets Resulting from Operations $ (66,336) $ (100,193) $ 5,908 $ 15,520 $ 5,145
======== ======== ======= ======= =======
</TABLE>
(1) Commenced operations on June 10, 1997.
(2) Commenced operations on June 18, 1997.
(3) Commenced operations on June 19, 1997.
See Notes to Financial Statements.
17
<PAGE> 20
FOR THE PERIOD ENDED OCTOBER 31, 1997 (1)
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN
SMALL SMALL PRICE SMALL CENTURY STRATEGIC ASAF FEDERATED
CAPITALIZATION CAPITALIZATION COMPANY VALUE BALANCED HIGH YIELD BOND
FUND FUND FUND FUND FUND
============= ============= ============= ================ ===============
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 1,984 $ 314 $ 2,461 $ 4,733 $ 8,473
Dividends -- -- 1,223 477 --
------- ------- ------- ------- -------
Total Investment Income 1,984 314 3,684 5,210 8,473
------- ------- ------- ------- -------
EXPENSES:
Advisory Fees 520 577 1,530 1,513 1,022
Shareholder Servicing Fees 3,580 3,546 3,331 3,465 3,158
Administration and
Accounting Fees 1,878 1,878 1,881 1,885 1,876
Custodian Fees 628 338 916 516 660
Distribution Fees -- Class A 63 78 179 565 353
Distribution Fees -- Class B 161 312 659 221 408
Distribution Fees -- Class C 55 47 214 148 134
Distribution Fees -- Class X 131 127 298 178 210
Professional Fees 3,055 2,943 6,669 9,925 3,104
Organization Costs 2,702 2,702 2,702 2,702 2,702
Directors' Fees and Expenses 1,300 1,459 3,551 5,052 2,097
Registration Fees 25,995 25,974 25,942 25,911 25,757
Printing Expenses 1,130 1,692 3,537 5,462 2,007
Miscellaneous Expenses 739 771 1,807 2,408 917
------- ------- ------- ------- -------
Total Expenses 41,937 42,444 53,216 59,951 44,405
Less: Reimbursement of
Expenses by Investment
Manager (40,772) (41,113) (49,954) (56,993) (41,843)
------- ------- ------- ------- -------
Net Expenses 1,165 1,331 3,262 2,958 2,562
------- ------- ------- ------- -------
Net Investment Income (Loss) 819 (1,017) 422 2,252 5,911
------- ------- ------- ------- -------
</TABLE>
See Notes to Financial Statements.
18
<PAGE> 21
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN
SMALL SMALL PRICE SMALL CENTURY STRATEGIC ASAF FEDERATED
CAPITALIZATION CAPITALIZATION COMPANY VALUE BALANCED HIGH YIELD BOND
FUND FUND FUND FUND FUND
============= ============= ============= ================ ===============
<S> <C> <C> <C> <C> <C>
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS:
Net Realized Loss on:
Securities -- -- (37) (1,010) (4,183)
Foreign Currency
Transactions (287) -- -- -- --
------- ------- ------- ------- -------
Net Realized Loss (287) -- (37) (1,010) (4,183)
------- ------- ------- ------- -------
Net Change in Unrealized
Depreciation on:
Securities (10,082) (2,016) (31,617) (7,216) (24,847)
Translation of Assets and
Liabilities Denominated
in Foreign Currencies (132) -- -- -- --
------- ------- ------- ------- -------
Net Change in Unrealized
Depreciation (10,214) (2,016) (31,617) (7,216) (24,847)
------- ------- ------- ------- -------
Net Loss on Investments (10,501) (2,016) (31,654) (8,226) (29,030)
------- ------- ------- ------- -------
Net Decrease in Net Assets
Resulting from Operations $ (9,682) $ (3,033) $ (31,232) $ (5,974) $ (23,119)
======= ======= ======= ======= =======
</TABLE>
(1) Commenced operations on July 28, 1997.
See Notes to Financial Statements.
19
<PAGE> 22
FOR THE PERIOD ENDED OCTOBER 31, 1997
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF T.
ROWE PRICE ASAF INVESCO
INTERNATIONAL ASAF JANUS EQUITY ASAF TOTAL ASAF JPM
EQUITY CAPITAL GROWTH INCOME RETURN BOND MONEY MARKET
FUND(1) FUND(1) FUND(2) FUND(2) FUND(3)
============= ============== ============ =========== ============
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (282) $ 7,214 $ 7,857 $ 3,392 $ 5,120
Net Realized Gain (Loss)
on Investments (583) (38,807) (13,204) 288 25
Net Change in Unrealized
Appreciation (Depreciation)
on Investments (65,471) (68,600) 11,255 11,840 --
---------- ---------- ---------- ---------- ----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations (66,336) (100,193) 5,908 15,520 5,145
---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A -- -- -- (136) (1,356)
Class B -- -- -- (360) (1,080)
Class C -- -- -- (103) (908)
Class X -- -- -- (430) (1,776)
---------- ---------- ---------- ---------- ----------
Total Distributions -- -- -- (1,029) (5,120)
---------- ---------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets from
Capital Share Transactions 1,617,517 4,440,542 3,292,689 1,159,186 1,548,506
---------- ---------- ---------- ---------- ----------
Net Increase in Net Assets 1,551,181 4,340,349 3,298,597 1,173,677 1,548,531
NET ASSETS:
Beginning of Period 10,000 10,000 10,000 10,000 10,000
---------- ---------- ---------- ---------- ----------
End of Period $ 1,561,181 $4,350,349 $3,308,597 $1,183,677 $1,558,531
========== ========== ========== ========== ==========
</TABLE>
(1) Commenced operations on June 10, 1997.
(2) Commenced operations on June 18, 1997.
(3) Commenced operations on June 19, 1997.
See Notes to Financial Statements.
20
<PAGE> 23
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN ASAF FEDERATED
SMALL SMALL PRICE SMALL CENTURY STRATEGIC HIGH YIELD
CAPITALIZATION CAPITALIZATION COMPANY VALUE BALANCED BOND
FUND(4) FUND(4) FUND(4) FUND(4) FUND(4)
============== ============== ============= ================= ==============
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 819 $ (1,017) $ 422 $ 2,252 $ 5,911
Net Realized Loss on
Investments (287) -- (37) (1,010) (4,183)
Net Change in Unrealized
Depreciation on Investments (10,214) (2,016) (31,617) (7,216) (24,847)
-------- -------- ---------- ---------- ----------
Net Decrease in Net Assets
Resulting from Operations (9,682) (3,033) (31,232) (5,974) (23,119)
-------- -------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A -- -- -- -- (3,360)
Class B -- -- -- -- (1,321)
Class C -- -- -- -- (470)
Class X -- -- -- -- (760)
-------- -------- ---------- ---------- ----------
Total Distributions -- -- -- -- (5,911)
-------- -------- ---------- ---------- ----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets from
Capital Share Transactions 620,488 882,116 2,534,338 1,247,302 3,855,489
-------- -------- ---------- ---------- ----------
Net Increase in Net Assets 610,806 879,083 2,503,106 1,241,328 3,826,459
NET ASSETS:
Beginning of Period 10,000 10,000 10,000 10,000 10,000
-------- -------- ---------- ---------- ----------
End of Period $620,806 $889,083 $ 2,513,106 $ 1,251,328 $3,836,459
======== ======== ========== ========== ==========
</TABLE>
(4) Commenced operations on July 28, 1997.
See Notes to Financial Statements.
21
<PAGE> 24
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per Share Data (For a Share Outstanding from
July 28, 1997* through October 31, 1997)
<TABLE>
<CAPTION>
Increase (Decrease) from Supplemental
Net Investment Operations Data
Asset ------------------------------------ Net ---------
Value Net Net Total Asset
Beginning Investment Realized from Less Distributions Value
of Income & Unrealized Investment From Net End of Total
Period (Loss) Gain (Loss) Operations Investment Income Period Return(2)
--------- ---------- ------------ ---------- ------------------ ------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASAF T. ROWE PRICE
INTERNATIONAL EQUITY FUND:
===============================
Class A $ 9.74 $ 0.01 $(0.82) $ (0.81) $ -- $ 8.93 (8.32)%
Class B 10.00 (0.01) (0.83) (0.84) -- 9.16 (8.40)%
Class C 10.00 (0.01) (0.83) (0.84) -- 9.16 (8.40)%
Class X 10.00 (0.01) (0.81) (0.82) -- 9.18 (8.20)%
ASAF JANUS
CAPITAL GROWTH FUND:
===============================
Class A $ 11.18 $ 0.09 $ 0.13 $ 0.22 $ -- $11.40 1.97%
Class B 10.00 0.06 0.13 0.19 -- 10.19 1.90%
Class C 10.00 0.05 0.14 0.19 -- 10.19 1.90%
Class X 10.00 0.05 0.15 0.20 -- 10.20 2.00%
ASAF INVESCO
EQUITY INCOME FUND:
===============================
Class A $ 9.98 $ 0.14 $ 0.33 $ 0.47 $ -- $10.45 4.71%
Class B 10.00 0.10 0.35 0.45 -- 10.45 4.50%
Class C 10.00 0.10 0.36 0.46 -- 10.46 4.60%
Class X 10.00 0.11 0.34 0.45 -- 10.45 4.50%
ASAF TOTAL
RETURN BOND FUND:
===============================
Class A $ 10.07 $ 0.15 $ 0.09 $ 0.24 $ (0.03) $10.28 2.39%
Class B 10.00 0.10 0.09 0.19 (0.03) 10.16 1.90%
Class C 10.00 0.10 0.09 0.19 (0.03) 10.16 1.93%
Class X 10.00 0.09 0.10 0.19 (0.02) 10.17 1.94%
ASAF JPM
MONEY MARKET FUND:
===============================
Class A $ 1.00 $0.009 $ -- $ 0.009 $ (0.009) $ 1.00 0.92%
Class B 1.00 0.007 -- 0.007 (0.007) 1.00 0.75%
Class C 1.00 0.007 -- 0.007 (0.007) 1.00 0.71%
Class X 1.00 0.008 -- 0.008 (0.008) 1.00 0.77%
<CAPTION>
Ratio of
Net
Ratios of Expenses to Investment
Average Net Assets** Income
Net Assets ---------------------------------- (Loss) to
at End of After Before Average
Period Expense Expense Net
(in 000's) Reimbursement(1) Reimbursement(1) Assets(1)
---------- ---------------- ---------------- ----------
<S> <C> <C> <C> <C>
ASAF T. ROWE PRICE
INTERNATIONAL EQUITY FUND:
===============================
Class A $ 218 2.10% 51.87% 0.07%
Class B 390 2.60% 38.12% (0.51)%
Class C 198 2.60% 33.95% (0.53)%
Class X 756 2.60% 46.77% (0.28)%
ASAF JANUS
CAPITAL GROWTH FUND:
===============================
Class A $ 706 1.70% 26.77% 2.72%
Class B 1,718 2.20% 16.45% 2.27%
Class C 452 2.20% 15.78% 1.95%
Class X 1,474 2.20% 24.39% 2.05%
ASAF INVESCO
EQUITY INCOME FUND:
===============================
Class A $ 471 1.55% 29.14% 4.81%
Class B 1,408 2.05% 19.54% 3.68%
Class C 255 2.05% 20.89% 3.82%
Class X 1,174 2.05% 36.25% 4.05%
ASAF TOTAL
RETURN BOND FUND:
===============================
Class A $ 61 1.40% 66.92% 4.42%
Class B 547 1.90% 39.35% 4.13%
Class C 165 1.90% 33.68% 4.32%
Class X 410 1.90% 67.46% 3.94%
ASAF JPM
MONEY MARKET FUND:
===============================
Class A $ 307 1.50% 31.53% 3.34%
Class B 354 2.00% 37.83% 2.98%
Class C 332 2.00% 24.34% 2.85%
Class X 566 2.00% 39.71% 2.97%
</TABLE>
(1) Annualized
(2) Total return for Class X shares does not reflect the payment of bonus
shares.
* Date of initial shares sold subsequent to the effective date of the Funds'
registration statement under The Securities Act of 1933.
** Represents the combined ratios for the respective fund and its respective
pro rata share of its Master Portfolio.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
22
<PAGE> 25
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Increase (Decrease) from Supplemental
Investment Operations Data
Net ------------------------------------ Net ---------
Asset Net Net Total Asset
Value Investment Realized from Less Distributions Value
Beginning income & Unrealized Investment From Net End of Total
of Period (Loss) Gain (Loss) Operations Investment Income Period Return(2)
--------- ---------- ------------ ---------- ------------------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND:
=========================
Class A $ 10.00 $ 0.05 $(0.18) $(0.13) $ -- $ 9.87 (1.30)%
Class B 10.00 0.04 (0.19) (0.15) -- 9.85 (1.50)%
Class C 10.00 0.04 (0.18) (0.14) -- 9.86 (1.40)%
Class X 10.00 0.04 (0.20) (0.16) -- 9.84 (1.60)%
ASAF FOUNDERS
SMALL CAPITALIZATION FUND:
=========================
Class A $ 10.00 $(0.03) $(0.03) $(0.06) $ -- $ 9.94 (0.60)%
Class B 10.00 (0.04) (0.03) (0.07) -- 9.93 (0.70)%
Class C 10.00 (0.04) (0.02) (0.06) -- 9.94 (0.60)%
Class X 10.00 (0.04) (0.03) (0.07) -- 9.93 (0.70)%
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND:
=========================
Class A $ 10.00 $ 0.02 $ 0.44 $ 0.46 $ -- $ 10.46 4.60%
Class B 10.00 -- 0.44 0.44 -- 10.44 4.40%
Class C 10.00 -- 0.45 0.45 -- 10.45 4.50%
Class X 10.00 -- 0.44 0.44 -- 10.44 4.40%
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND:
=========================
Class A $ 10.00 $ 0.04 $(0.05) $(0.01) $ -- $ 9.99 (0.10)%
Class B 10.00 0.02 (0.06) (0.04) -- 9.96 (0.40)%
Class C 10.00 0.02 (0.04) (0.02) -- 9.98 (0.20)%
Class X 10.00 0.02 (0.06) (0.04) -- 9.96 (0.40)%
ASAF FEDERATED
HIGH YIELD BOND FUND:
=========================
Class A $ 10.00 $ 0.05 $(0.07) $(0.02) $(0.05) $ 9.93 (0.23)%
Class B 10.00 0.04 (0.07) (0.03) (0.04) 9.93 (0.30)%
Class C 10.00 0.03 (0.07) (0.04) (0.03) 9.93 (0.36)%
Class X 10.00 0.04 (0.07) (0.03) (0.04) 9.93 (0.25)%
<CAPTION>
Ratio of
Net
Ratios of Expenses to Investment
Average Net Assets Income
Net Assets Average ---------------------------------- (Loss) to
at End of Portfolio Commission After Before Average
Period Turnover Rate Expense Expense Net
(in 000's) Rate Paid Reimbursement(1) Reimbursement(1) Assets(1)
---------- -------- ---------- ---------------- ---------------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND:
=========================
Class A $ 106 -- $ 0.0590 2.10% 136.49% 2.03%
Class B 230 -- 0.0590 2.60% 90.64% 1.62%
Class C 79 -- 0.0590 2.60% 55.02% 1.72%
Class X 206 -- 0.0590 2.60% 54.45% 1.58%
ASAF FOUNDERS
SMALL CAPITALIZATION FUND:
=========================
Class A $ 193 -- $ 0.0529 1.70% 105.48% (1.16)%
Class B 353 -- 0.0529 2.20% 57.99% (1.73)%
Class C 74 -- 0.0529 2.20% 42.48% (1.73)%
Class X 270 -- 0.0529 2.20% 47.29% (1.70)%
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND:
=========================
Class A $ 383 -- $ 0.0412 1.75% 54.47% 0.69%
Class B 1,155 -- 0.0412 2.25% 30.14% 0.17%
Class C 335 -- 0.0412 2.25% 33.60% 0.02%
Class X 640 -- 0.0412 2.25% 22.43% 0.19%
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND:
=========================
Class A $ 257 2% $ 0.0186 1.60% 37.87% 1.56%
Class B 381 2% 0.0186 2.10% 29.90% 0.79%
Class C 215 2% 0.0186 2.10% 38.96% 0.78%
Class X 398 2% 0.0186 2.10% 26.66% 1.07%
ASAF FEDERATED
HIGH YIELD BOND FUND:
=========================
Class A $2,154 11% $ N/A 1.50% 30.49% 4.76%
Class B 920 11% N/A 2.00% 30.22% 3.15%
Class C 206 11% N/A 2.00% 29.26% 3.55%
Class X 556 11% N/A 2.00% 30.95% 3.65%
</TABLE>
(1) Annualized
(2) Total return for Class X shares does not reflect the payment of bonus
shares.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
23
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 26
OCTOBER 31, 1997
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
================================================================================
American Skandia Advisor Funds, Inc. (the "Company") is an open-end
management investment company, registered under the Investment Company Act of
1940, as amended. The Company was organized on March 5, 1997 as a Maryland
Corporation. The Company operates as a series company and, at October 31, 1997,
consisted of ten diversified investment portfolios (each a "Fund" and
collectively the "Funds"). Five of the Funds -- ASAF T. Rowe Price International
Equity Fund ("International Equity"), ASAF Janus Capital Growth Fund ("Capital
Growth"), ASAF INVESCO Equity Income Fund ("Equity Income"), ASAF Total Return
Bond Fund ("Total Return Bond"), and ASAF JPM Money Market Fund ("Money Market")
(each a "Feeder Fund" and collectively the "Feeder Funds") -- invest all of
their investable assets in a corresponding portfolio of American Skandia Master
Trust (each a "Portfolio" and collectively the "Portfolios"), an open-end
management investment company comprised of five diversified investment
portfolios. The value of each Feeder Fund's investment in each Portfolio,
included in the accompanying Statements of Assets and Liabilities, reflects each
Feeder Fund's beneficial interest in the net assets of that Portfolio. At
October 31, 1997, the Feeder Funds held the following percentage interests in
their corresponding Portfolios.
<TABLE>
<S> <C>
ASMT T. Rowe Price International Equity Portfolio 44.4%
ASMT Janus Capital Growth Portfolio 54.4%
ASMT INVESCO Equity Income Portfolio 50.8%
ASMT PIMCO Total Return Bond Portfolio 23.5%
ASMT JPM Money Market Portfolio 77.7%
</TABLE>
The financial statements of each Portfolio, including the Schedules of
Investments, are included elsewhere within this report and should be read in
conjunction with each Feeder Fund's financial statements.
The remaining five Funds of the Company -- ASAF Founders International
Small Capitalization Fund ("International Small Cap"), ASAF Founders Small
Capitalization Fund ("Small Cap"), ASAF T. Rowe Price Small Company Value Fund
("Small Company Value"), ASAF American Century Strategic Balanced Fund
("Strategic Balanced"), and ASAF Federated High Yield Bond Fund ("High Yield
Bond") (each a "Non-Feeder Fund" and collectively the "Non-Feeder
Funds") -- directly invest and manage their own portfolio of securities.
2. SIGNIFICANT ACCOUNTING POLICIES
================================================================================
The following is a summary of significant accounting policies followed by
the Funds, in conformity with generally accepted accounting principles, in the
preparation of their financial statements. The preparation of financial
statements requires management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual results
could differ from those estimates.
SECURITY VALUATION
FEEDER FUNDS -- The value of each Feeder Fund's beneficial interest in the
Portfolio in which it invests is determined by the Fund's percentage ownership
in the Portfolio, multiplied by the Portfolio's net assets.
24
<PAGE> 27
AMERICAN SKANDIA ADVISOR FUNDS, INC.
Valuation of securities held by the Portfolios is discussed in Note 2 to the
financial statements of American Skandia Master Trust.
NON-FEEDER FUNDS -- Securities are valued at the close of trading on the New
York Stock Exchange. Equity securities are valued at the last reported sales
price on the securities exchange on which they are primarily traded, or at the
last reported sales price on the NASDAQ National Securities Market. Securities
not listed on an exchange or securities market, or securities in which there
were no transactions, are valued at the average of the most recent bid and asked
prices.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service. Debt
securities which mature in 60 days or less are valued at cost (or market value
60 days prior to maturity), adjusted for amortization to maturity of any premium
or discount. Securities for which market quotations are not readily available
are valued at fair value as determined in good faith by, or at the direction of,
the Board of Directors. As of October 31, 1997, there were no securities valued
by the Board of Directors.
FOREIGN CURRENCY TRANSLATION
NON-FEEDER FUNDS -- Securities and other assets and liabilities denominated in
foreign currencies are converted each business day into U.S. dollars based on
the prevailing rates of exchange. Purchases and sales of portfolio securities
and income and expenses are converted into U.S. dollars on the respective dates
of such transactions.
Gains and losses resulting from changes in exchange rates applicable to
foreign securities are not reported separately from gains and losses arising
from movements in securities prices.
Net realized foreign exchange gains and losses include gains and losses
from sales and maturities of foreign currency exchange contracts, gains and
losses realized between the trade and settlement dates of foreign securities
transactions, and the difference between the amount of net investment income
accrued on foreign securities and the U.S. dollar amount actually received. Net
unrealized foreign exchange gains and losses include gains and losses from
changes in the value of assets and liabilities other than portfolio securities,
resulting from changes in exchange rates.
FOREIGN CURRENCY EXCHANGE CONTRACTS
NON-FEEDER FUNDS -- A foreign currency exchange contract ("FCEC") is a
commitment to purchase or sell a specified amount of a foreign currency at a
specified future date, in exchange for either a specified amount of another
foreign currency or U.S. dollars.
FCECs are valued at the forward exchange rates applicable to the underlying
currencies, and changes in market value are recorded as unrealized gains and
losses until the contract settlement date.
Risks could arise from entering into FCECs if the counterparties to the
contracts were unable to meet the terms of their contracts. In addition, the use
of FCECs may not only hedge against losses on securities
25
<PAGE> 28
denominated in foreign currency, but may also reduce potential gains on
securities from favorable movements in exchange rates.
REPURCHASE AGREEMENTS
NON-FEEDER FUNDS -- A repurchase agreement is a commitment to purchase
government securities from a seller who agrees to repurchase the securities at
an agreed on price and date. The excess of the resale price over the purchase
price determines the yield on the transaction. Under the terms of the agreement,
the market value, including accrued interest, of the government securities will
be at least equal to their repurchase price. Repurchase agreements are recorded
at cost, which, combined with accrued interest, approximates market value.
Repurchase agreements entail a risk of loss in the event that the seller
defaults on its obligation to repurchase the securities. In such case, the Fund
may be delayed or prevented from exercising its right to dispose of the
securities.
DEFERRED ORGANIZATION COSTS
ALL FUNDS -- The Company bears all costs in connection with its organization.
All such costs are amortized on a straight-line basis over a five-year period
beginning on the date of the commencement of operations.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
FEEDER FUNDS -- The Feeder Funds record their proportionate share of investment
operations, including net investment income and realized and unrealized gains
and losses, from the corresponding Portfolios in which they invest. The Feeder
Funds receive daily allocations of investment operations from their
corresponding Portfolios based on the value of their investments in their
respective Portfolios.
NON-FEEDER FUNDS -- Investment transactions are accounted for on the trade date.
Realized gains and losses from securities sold are recognized on the specific
identification basis. Dividend income is recorded on the ex-dividend date.
Corporate actions, including dividends, on foreign securities are recorded on
the ex-dividend date or, if such information is not available, as soon as
reliable information is available from the Funds' sources. Interest income is
recorded on the accrual basis and includes the accretion of discount and
amortization of premium.
MULTIPLE CLASSES OF SHARES
ALL FUNDS -- Each Fund is divided into Class A, B, C, and X shares. Each class
of shares is separately charged its respective distribution and service fees.
Income, expenses that are not specific to a particular class, and realized and
unrealized gains and losses are allocated to each class based on the daily value
of the shares of each class in relation to the total value of the Fund.
Dividends are declared separately for each class and the per-share amounts
reflect differences in class-specific expenses.
DISTRIBUTIONS TO SHAREHOLDERS
ALL FUNDS -- Dividends, if any, from net investment income are declared and paid
at least annually by the International Small Cap, International Equity, Small
Cap, Small Company Value, and Capital Growth Funds,
26
<PAGE> 29
AMERICAN SKANDIA ADVISOR FUNDS, INC.
semiannually by the Equity Income and Strategic Balanced Funds, quarterly by the
Total Return Bond Fund, and declared daily and paid monthly by the High Yield
Bond and Money Market Funds. Net realized gains from investment transactions, if
any, are distributed at least annually. Distributions to shareholders are
recorded on the ex-dividend date.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
================================================================================
The Non-Feeder Funds have entered into investment management agreements
with American Skandia Investment Services, Inc. ("Investment Manager") which
provide that the Investment Manager will furnish each Fund with investment
advice and investment management and administrative services. The Investment
Manager has engaged the following firms as Sub-advisors for their respective
Funds: Founders Asset Management, Inc. for International Small Cap and Small
Cap; T. Rowe Price Associates, Inc. for Small Company Value; American Century
Investment Management, Inc. for Strategic Balanced; and Federated Investment
Counseling for High Yield Bond.
ADVISORY FEES
NON-FEEDER FUNDS -- The Investment Manager receives a fee, computed daily and
paid monthly, based on an annual rate of 1.10%, .90%, 1.00%, .90%, and .70% of
the average daily net assets of the International Small Cap, Small Cap, Small
Company Value, Strategic Balanced, and High Yield Bond Funds, respectively. The
fee for International Small Cap is reduced to 1.00% of the average daily net
assets in excess of $100 million.
SUB-ADVISORY FEES
NON-FEEDER FUNDS -- The Investment Manager pays each Sub-advisor a fee, computed
daily and paid monthly, based on an annual rate of .60%, .50%, .60%, .50%, and
.25% of the average daily net assets of the International Small Cap, Small Cap,
Small Company Value, Strategic Balanced, and High Yield Bond Funds,
respectively. The annual rates of the fees payable to the Sub-advisors for
International Small Cap, Small Cap, Strategic Balanced, and High Yield Bond are
reduced for Fund net assets in excess of specified levels.
EXPENSE REIMBURSEMENTS
ALL FUNDS -- The Investment Manager has voluntarily agreed to reimburse each
Fund for operating expenses (exclusive of class-specific distribution fees) in
excess of 1.60%, 1.20%, 1.25%, 1.10%, 1.00%, 1.60%, 1.20%, 1.05%, .90%, and
1.00%, on an annualized basis, of the average daily net assets of the
International Small Cap, Small Cap, Small Company Value, Strategic Balanced,
High Yield Bond, International Equity, Capital Growth, Equity Income, Total
Return Bond, and Money Market Funds, respectively. All amounts paid or payable
to the Funds by the Investment Manager, under the agreement, are reflected in
the Statements of Operations.
27
<PAGE> 30
MANAGEMENT OF THE COMPANY
NON-FEEDER FUNDS -- Certain officers and Directors of the Funds are officers or
directors of the Investment Manager. The Funds pay no compensation directly to
their officers or interested Directors.
DISTRIBUTOR
ALL FUNDS -- American Skandia Marketing, Incorporated ("ASMI") serves as the
principal underwriter and distributor for each Fund.
The Company has adopted a separate Distribution and Service Plan (each a
"Plan" and collectively the "Plans") for Class A, B, C, and X shares of each
Fund in accordance with the requirements of Rule 12b-1 of the Investment Company
Act of 1940.
Under the Class A Plan, the Funds will pay ASMI a distribution and service
fee of .50% of the average daily net assets attributable to Class A shares, half
of which is intended as a fee for services provided to existing shareholders.
ASMI uses distribution and service fees received under the Plan to compensate
qualified dealers, brokers, banks, and other financial institutions ("Dealers")
for services provided in connection with the sale of Class A shares and the
maintenance of shareholder accounts. Such compensation is paid by ASMI quarterly
at an annual rate not to exceed .50% of the Funds' average daily net assets
attributable to Class A shares. Fees incurred under the Plan during the period
ended October 31, 1997 were .50% of the average daily net assets of Class A
shares of the Funds.
A portion of the sales charge on sales of Class A shares may be retained by
ASMI or allocated to Dealers attributable to the sale of those shares. For the
period ended October 31, 1997, ASMI retained no portion of the sales charge on
sales of Class A shares of the Funds.
Under the Class B Plan, the Funds will pay ASMI a distribution and service
fee of 1.00% of the average daily net assets attributable to Class B shares, a
quarter of which is intended as a fee for services provided to existing
shareholders. ASMI uses distribution and service fees received under the Plan to
compensate Dealers for services provided in connection with the sale of Class B
shares and the maintenance of shareholder accounts. Such compensation is paid by
ASMI quarterly at an annual rate not to exceed .50% of the Funds' average daily
net assets attributable to Class B shares held for over seven years. Fees
incurred under the Plan during the period ended October 31, 1997 were 1.00% of
the average daily net assets of Class B shares of the Funds.
Under the Class C Plan, the Funds will pay ASMI a distribution and service
fee of 1.00% of the average daily net assets attributable to Class C shares, a
quarter of which is intended as a fee for services provided to existing
shareholders. ASMI uses distribution and service fees received under the Plan to
compensate Dealers for services provided in connection with the sale of Class C
shares and the maintenance of shareholder accounts. ASMI currently pays a 1.00%
fee to Dealers, in advance, upon sale of Class C shares and retains the fee paid
by the Funds in the first year. After the shares have been held for a year, ASMI
pays such compensation on a quarterly basis. Fees incurred under the Plan during
the period ended October 31, 1997 were 1.00% of the average daily net assets of
Class C shares of the Funds.
Under the Class X Plan, the Funds will pay ASMI a distribution and service
fee of 1.00% of the average daily net assets attributable to Class X shares that
are outstanding for eight years or less, a quarter of which is intended as a fee
for services provided to existing shareholders. ASMI uses distribution and
service fees
28
<PAGE> 31
AMERICAN SKANDIA ADVISOR FUNDS, INC.
received under the Plan as reimbursement for its purchases of Bonus Shares, as
well as to compensate Dealers for services provided in connection with the sale
of Class X shares and the maintenance of shareholder accounts. Compensation to
Dealers is paid by ASMI quarterly at an annual rate not to exceed .50% of the
Funds' average daily net assets attributable to Class X shares held for over
seven years. Fees incurred under the Plan during the period ended October 31,
1997 were 1.00% of the average daily net assets of Class X shares of the Funds.
Purchases of $1 million or more or purchases by certain retirement plans,
with respect to Class A shares, are subject to a contingent deferred sales
charge ("CDSC") if shares are redeemed within 12 months of their purchase. A
CDSC is imposed on Class B and Class X shares redeemed within eight years after
their purchase. A CDSC is imposed on Class C shares redeemed within 12 months of
their purchase. The maximum CDSC imposed is equal to 1%, 6%, 1%, and 6% of the
amount subject to the charge, for Class A, B, C, and X, respectively. CDSCs
collected by ASMI totaled $644, $100, and $385 for Class B, Class C, and Class
X, respectively.
RELATED-PARTY TRANSACTIONS
At October 31, 1997, American Century Investment Management, Inc. owned
shares of ASAF American Century Strategic Balanced Fund, which comprised
approximately 7% of the net assets of the Fund. In addition, the Investment
Manager owned shares of ASAF Federated High Yield Bond Fund, which comprised
approximately 52% of the net assets of the Fund.
4. SHARES OF CAPITAL STOCK
================================================================================
ALL FUNDS -- The authorized capital stock of the Funds is 40 million shares,
with a par value of $.001 per share. Transactions in shares of capital stock,
for the period from July 28, 1997 (commencement of operations) to October 31,
1997, were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
------------------ --------------------- ------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
=========== ============== ============ ================= =========== ============== ========
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY:
Sold 23,490 $220,217 42,608 $ 405,136 21,627 $207,357 84,453 $ 806,216
Redeemed (123) (1,174) (81) (797) (3) (25) (2,063) (19,413)
------ -------- ------- ---------- ------ -------- ------- ----------
Net Increase 23,367 $219,043 42,527 $ 404,339 21,624 $207,332 82,390 $ 786,803
====== ======== ======= ========== ====== ======== ======= ==========
CAPITAL GROWTH:
Sold 66,046 $768,680 168,878 $1,766,154 44,354 $465,523 144,494 $1,503,024
Redeemed (5,101) (59,528) (298) (3,181) (3) (25) (10) (105)
------ -------- ------- ---------- ------ -------- ------- ----------
Net Increase 60,945 $709,152 168,580 $1,762,973 44,351 $465,498 144,484 $1,502,919
====== ======== ======= ========== ====== ======== ======= ==========
EQUITY INCOME:
Sold 44,136 $459,412 134,825 $1,411,321 24,377 $255,486 112,415 $1,168,540
Redeemed -- -- (162) (1,731) -- -- (32) (339)
------ -------- ------- ---------- ------ -------- ------- ----------
Net Increase 44,136 $459,412 134,663 $1,409,590 24,377 $255,486 112,383 $1,168,201
====== ======== ======= ========== ====== ======== ======= ==========
TOTAL RETURN BOND:
Sold 5,693 $ 57,481 54,044 $ 542,228 16,227 $163,314 40,314 $ 405,133
Reinvested 10 103 20 202 10 103 43 430
Redeemed (746) (7,525) (202) (2,025) (3) (25) (23) (233)
------ -------- ------- ---------- ------ -------- ------- ----------
Net Increase 4,957 $ 50,059 53,862 $ 540,405 16,234 $163,392 40,334 $ 405,330
====== ======== ======= ========== ====== ======== ======= ==========
</TABLE>
29
<PAGE> 32
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
--------------------- ---------------------- --------------------- ---------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
============ ================= ============== ================= ============== ==================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET:
Sold 374,404 $ 374,404 702,299 $ 702,299 531,152 $ 531,152 874,395 $ 874,395
Reinvested 1,094 1,094 1,141 1,141 891 891 725 725
Redeemed (78,485) (78,485) (349,856) (349,856) (200,540) (200,540) (308,714) (308,714)
------- ---------- -------- ---------- -------- --------- -------- ---------
Net Increase 297,013 $ 297,013 353,584 $ 353,584 331,503 $ 331,503 566,406 $ 566,406
======= ========== ======== ========== ======== ========= ======== =========
INTERNATIONAL SMALL CAP:
Sold 9,754 $ 97,828 23,340 $ 233,440 7,998 $ 80,146 20,945 $ 209,179
Redeemed -- -- (2) (25) (6) (55) (2) (25)
------- ---------- -------- ---------- -------- --------- -------- ---------
Net Increase 9,754 $ 97,828 23,338 $ 233,415 7,992 $ 80,091 20,943 $ 209,154
======= ========== ======== ========== ======== ========= ======== =========
SMALL CAP:
Sold 18,372 $ 183,278 35,572 $ 354,771 7,399 $ 73,723 27,161 $ 270,490
Redeemed (3) (25) (3) (25) (2) (25) (7) (71)
------- ---------- -------- ---------- -------- --------- -------- ---------
Net Increase 18,369 $ 183,253 35,569 $ 354,746 7,397 $ 73,698 27,154 $ 270,419
======= ========== ======== ========== ======== ========= ======== =========
SMALL COMPANY VALUE:
Sold 35,645 $ 375,919 110,704 $1,167,706 32,096 $ 342,052 61,311 $ 649,944
Redeemed (17) (181) (70) (760) (3) (25) (29) (317)
------- ---------- -------- ---------- -------- --------- -------- ---------
Net Increase 35,628 $ 375,738 110,634 $1,166,946 32,093 $ 342,027 61,282 $ 649,627
======= ========== ======== ========== ======== ========= ======== =========
STRATEGIC BALANCED:
Sold 83,398 $ 838,987 38,292 $ 388,813 21,579 $ 219,920 39,958 $ 399,935
Redeemed (58,685) (600,178) (12) (125) (3) (25) (2) (25)
------- ---------- -------- ---------- -------- --------- -------- ---------
Net Increase 24,713 $ 238,809 38,280 $ 388,688 21,576 $ 219,895 39,956 $ 399,910
======= ========== ======== ========== ======== ========= ======== =========
HIGH YIELD BOND:
Sold 216,427 $2,168,207 92,594 $ 924,866 21,719 $ 216,988 60,245 $ 600,477
Reinvested 336 3,338 106 1,056 47 469 82 811
Redeemed (718) (7,184) (53) (532) (1,002) (9,951) (4,306) (43,056)
------- ---------- -------- ---------- -------- --------- -------- ---------
Net Increase 216,045 $2,164,361 92,647 $ 925,390 20,764 $ 207,506 56,021 $ 558,232
======= ========== ======== ========== ======== ========= ======== =========
</TABLE>
The number of shareholders whose ownership is 5% or more of the net assets
of a fund, and their combined percentage ownership is as follows:
<TABLE>
<CAPTION>
NUMBER OF PERCENTAGE
SHAREHOLDERS OWNERSHIP
==================== ================
<S> <C> <C>
Equity Income 1 6%
Total Return Bond 5 38
Money Market 6 47
International Small Cap 2 16
Small Cap 3 17
Small Company Value 1 5
Strategic Balanced 4 24
High Yield Bond 1 52
</TABLE>
5. TAX MATTERS
================================================================================
ALL FUNDS -- Each Fund intends to qualify as a regulated investment company
under the Internal Revenue Code and to distribute all of its taxable income,
including any net realized gains on investments, to shareholders. Accordingly,
no provision for federal income or excise tax has been made.
30
<PAGE> 33
AMERICAN SKANDIA ADVISOR FUNDS, INC.
Income and capital gains of the Funds are determined in accordance with
both tax regulations and generally accepted accounting principles. Such may
result in temporary and permanent differences between tax basis earnings and
earnings reported for financial statement purposes. Temporary differences that
result in over-distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains. Permanent differences in the recognition of earnings are reclassified to
additional paid-in capital. Distributions in excess of tax-basis earnings are
recorded as a return of capital.
CAPITAL LOSS CARRYFORWARDS -- At October 31, 1997, the following Funds had, for
federal income tax purposes, capital loss carryforwards available to offset
future net realized capital gains.
<TABLE>
<CAPTION>
EXPIRING
IN 2005
============
<S> <C>
Capital Growth $38,807
Equity Income 12,699
Small Company Value 37
Strategic Balanced 1,010
High Yield Bond 4,183
</TABLE>
6. PORTFOLIO SECURITIES
================================================================================
NON-FEEDER FUNDS -- Purchases and sales of securities, other than U.S.
government securities, and short-term obligations, during the period ended
October 31, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
=============== ===========
<S> <C> <C>
International Small Cap $ 381,711 $ --
Small Cap 180,836 --
Small Company Value 2,051,601 --
Strategic Balanced 633,410 6,926
High Yield Bond 3,214,715 88,250
</TABLE>
Purchases and sales of U.S. government securities, during the period end
October 31, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
=============== ===========
<S> <C> <C>
Strategic Balanced $298,625 $ --
</TABLE>
At October 31, 1997, the cost and unrealized appreciation or depreciation
in value of the investments owned by the Non-Feeder Funds, for federal income
tax purposes, were as follows:
<TABLE>
<CAPTION>
GROSS GROSS
AGGREGATE UNREALIZED UNREALIZED NET UNREALIZED
COST APPRECIATION DEPRECIATION DEPRECIATION
=============== =================== =================== ======================
<S> <C> <C> <C> <C>
International Small Cap $ 381,711 $ 1,437 $ 11,519 $ 10,082
Small Cap 254,041 4,229 6,245 2,016
Small Company Value 2,672,075 30,907 62,524 31,617
Strategic Balanced 1,155,555 32,835 40,051 7,216
High Yield Bond 4,417,473 3,302 28,149 24,847
</TABLE>
31
<PAGE> 34
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of
American Skandia Advisor Funds, Inc.:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the American Skandia Advisor Funds,
Inc. (the "Company"), comprising, respectively, ASAF T. Rowe Price International
Equity Fund, ASAF Janus Capital Growth Fund, ASAF INVESCO Equity Income Fund,
ASAF Total Return Bond Fund, ASAF JPM Money Market Fund, ASAF Founders
International Small Capitalization Fund, ASAF Founders Small Capitalization
Fund, ASAF T. Rowe Price Small Company Value Fund, ASAF American Century
Strategic Balanced Fund, and ASAF Federated High Yield Bond Fund as of October
31, 1997, and their related statements of operations, changes in net assets and
financial highlights for each of the periods presented. These financial
statements and financial highlights are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
October 31, 1997, by correspondence with custodians and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the aforementioned funds of the American Skandia Advisor Funds, Inc. as
of October 31, 1997, and the results of their operations, the changes in their
net assets and their financial highlights for each of the periods presented, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
December 12, 1997
32
<PAGE> 35
AMERICAN SKANDIA MASTER TRUST
SCHEDULES OF INVESTMENTS
OCTOBER 31, 1997
ASMT T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
ASMT JANUS CAPITAL GROWTH PORTFOLIO
ASMT INVESCO EQUITY INCOME PORTFOLIO
ASMT PIMCO TOTAL RETURN BOND PORTFOLIO
ASMT JPM MONEY MARKET PORTFOLIO
<PAGE> 36
- -------------------------------------------------------
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 63.8%
ARGENTINA -- 1.3%
Banco de Galicia y
Buenos Aires SA de CV
[ADR] 370 $ 8,967
Perez Companc SA C1-B 1,840 11,488
Telefonica de Argentina
SA 490 13,781
YPF SA [ADR] 340 10,880
--------
45,116
--------
AUSTRALIA -- 1.5%
Australian Gas Light
Co. Ltd. 2,000 13,393
Broken Hill Proprietary
Co. Ltd. 1,000 9,939
News Corp. Ltd. 2,005 9,624
St. George Bank Ltd. 2,000 12,144
Woodside Petroleum Ltd. 1,000 8,466
--------
53,566
--------
BELGIUM -- 1.1%
Generale de Banque SA 30 12,272
Kredietbank NV 60 25,178
--------
37,450
--------
BRAZIL -- 1.0%
Lojas Americanas SA
[ADR] 1,000 8,164
Pao de Acucar [ADR] 1,000 18,500
Usinas Siderurgicas de
Minas Gerais SA [ADR] 1,000 7,483
--------
34,147
--------
CANADA -- 0.3%
Alcan Aluminium Ltd. 320 9,085
--------
CHILE -- 0.6%
Chilgener SA [ADR] 338 9,210
Compania Cervecerias
Unidas SA [ADR] 430 10,481
--------
19,691
--------
FINLAND -- 0.3%
Nokia AB Cl-A 120 10,497
--------
FRANCE -- 5.4%
Alcatel Alsthom 100 12,092
AXA-UAP 180 12,352
Carrefour Supermarche
SA 20 10,459
Compagnie de Saint-
Gobain 90 12,946
Compagnie Generale des
Eaux 230 26,892
Legrand SA 50 9,329
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Louis Vuitton Moet
Hennessy 40 $ 6,810
Pinault-Printemps
Redoute SA 40 18,332
Sanofi SA 130 12,377
Schneider SA 240 12,842
Societe Generale 70 9,607
Societe Nationale Elf
Aquitaine SA 100 12,404
Sodexho SA 20 9,996
Total SA Cl-B 190 21,126
--------
187,564
--------
GERMANY -- 4.1%
Allianz AG 60 13,561
Bayer AG 250 9,006
Bayerische Bank AG 240 10,123
Deutsche Bank AG 270 17,868
Deutsche Telekom AG 520 9,759
Gehe AG 320 16,826
Mannesmann AG 10 4,241
Rhoen-Klinikum AG 50 4,997
SAP AG 50 14,307
SAP AG Pfd. 40 11,957
Siemens AG 180 11,190
Veba AG 320 18,034
--------
141,869
--------
HONG KONG -- 1.5%
Dao Heng Bank Group
Ltd. 3,000 6,909
Henderson Land
Development Co. Ltd. 1,000 5,537
Hong Kong Land Holdings
Ltd. 4,000 9,120
Hutchison Whampoa Ltd. 2,000 13,843
New World Development
Co. Ltd. 2,000 7,038
</TABLE>
34
<PAGE> 37
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Swire Pacific Ltd. Cl-A 1,000 $ 5,343
Wharf Holdings Ltd. 3,000 6,132
--------
53,922
--------
ITALY -- 2.1%
Credito Italiano SPA 4,000 10,685
Ente Nazionale
Idrocarburi SPA 2,000 11,265
Istituto Mobiliare
Italiano SPA 1,000 8,958
Mediolanum SPA 1,000 16,803
Telecom Italia Mobile
SPA 4,000 14,863
Telecom Italia SPA 2,000 12,555
--------
75,129
--------
JAPAN -- 13.8%
Canon, Inc. 1,000 24,279
Dainippon Screen
Manufacturing Co.
Ltd. 1,000 8,115
Daiichi Pharmaceutical
Co. Ltd. 1,000 14,218
Daiwa House Industry
Co. Ltd. 1,000 9,645
DDI Corp. 3 10,027
Denso Corp. 1,000 21,618
East Japan Railway Co.
Ltd. 2 9,728
Fanuc Ltd. 400 16,164
Hitachi Ltd. 1,000 7,691
Kao Corp. 1,000 13,969
Komatsu Ltd. 2,000 10,693
Komori Corp. 1,000 18,292
Kuraray Co. Ltd. 2,000 17,960
Makita Corp. 1,000 14,052
Matsushita Electric
Industrial Co. 1,000 16,795
Marui Co. Ltd. 1,000 16,879
Mitsubishi Corp. 2,000 17,128
Mitsubishi Heavy
Industries Ltd. 3,000 14,742
Mitsui Fudosan Co. Ltd. 1,000 11,308
NEC Corp. 1,000 10,975
Nippon Steel Co. 5,000 10,310
Nippon Telegraph &
Telephone Corp. 10 8,481
Nomura Securities Co.
Ltd. 1,000 11,640
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Pioneer Electronic
Corp. 1,000 $ 16,463
Sankyo Co. Ltd. 1,000 33,009
Sekisui Chemical Co.
Ltd. 1,000 7,874
Sekisui House Ltd. 1,000 8,564
Sharp Corp. 1,000 7,774
Shin-Etsu Chemical Co. 1,000 24,445
Sony Corp. 200 16,613
Sumitomo Corp. 1,000 7,151
Sumitomo Electric
Industries 1,000 13,220
Teijin Ltd. 4,000 13,137
Tokio Marine & Fire
Insurance Co. 1,000 9,978
Toppan Printing Co.
Ltd. 1,000 12,555
--------
485,492
--------
MALAYSIA -- 0.1%
United Engineers Ltd. 2,000 4,716
--------
MEXICO -- 1.6%
Cementos de Mexico SA
de CV [ADS]* 2,000 15,606
Cifra SA de CV Cl-B
[ADR] 5,560 10,831
Fomento Economico
Mexicano SA de CV 2,000 14,038
Gruma SA [ADR] 144A* 516 8,040
Grupo Modelo SA de CV 1,000 7,470
--------
55,985
--------
NETHERLANDS -- 7.1%
ABN Amro Bank NV 730 14,707
Baan Co. NV 160 11,336
CSM NV 260 11,870
Elsevier NV 1,700 26,717
Fortis Amev NV 240 9,436
ING Groep NV 640 26,877
Koninklijke Nutricia
Verenigde Bedrijven
NV 370 10,581
Polygram NV 200 11,377
Royal Dutch Petroleum
NV 1,080 57,152
Unilever NV 390 20,739
Wolters Kluwer NV 380 46,680
--------
247,472
--------
NEW ZEALAND -- 0.2%
Air New Zealand Ltd.
C1-B 4,000 8,483
--------
</TABLE>
35
<PAGE> 38
- -------------------------------------------------------
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
NORWAY -- 1.1%
Norsk Hydro AS 350 $ 19,273
Orkla AS Cl-A 120 11,022
Saga Petroleum ASA 520 9,211
--------
39,506
--------
SINGAPORE -- 0.9%
Overseas Union Bank
Ltd. Cl-F 2,000 6,675
Singapore Land Ltd. 2,000 5,696
Singapore Press
Holdings Ltd. 1,000 13,795
United Overseas Bank
Ltd. 1,000 5,531
--------
31,697
--------
SPAIN -- 1.4%
Banco Santander SA 360 10,092
Empresa Nacional de
Electricidad SA 510 9,613
Iberdrola SA 950 11,372
Repsol SA 220 9,232
Telefonica de Espana SA 370 10,105
--------
50,414
--------
SWEDEN -- 2.0%
Astra AB Cl-B 1,300 20,149
Atlas Copco AB Cl-B 320 9,513
Electrolux AB Cl-B 170 14,083
Hennes & Mauritz AB
Cl-B 390 15,972
Sandvik AB Cl-B 320 9,748
--------
69,465
--------
SWITZERLAND -- 4.0%
ABB AG 20 26,139
Adecco SA 40 12,747
Credit Suisse Group 80 11,301
Nestle SA 20 28,259
Novartis AG 30 47,114
Swiss Bank Corp. 50 13,481
--------
139,041
--------
UNITED KINGDOM -- 12.4%
Abbey National PLC 1,000 15,897
Argos PLC 1,000 10,590
Asda Group PLC 4,000 10,397
British Petroleum Co.
PLC 1,000 14,690
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Cable & Wireless PLC 1,000 $ 7,982
Cadbury Schweppes PLC 1,000 10,061
Glaxo Wellcome PLC 1,000 21,431
Grand Metropolitan PLC 2,000 18,043
Guinness PLC 2,000 17,876
Kingfisher PLC 2,000 28,775
Ladbroke Group PLC 3,000 13,432
National Westminster
Bank PLC 5,000 71,855
Rank Group PLC 2,000 11,168
Reed International PLC 4,000 39,541
RTZ Corp. PLC 1,000 12,879
Safeway PLC 2,000 13,021
Shell Transport &
Trading Co. PLC 4,000 28,356
Smithkline Beecham PLC 4,000 37,898
Tesco PLC 1,000 8,003
Tomkins PLC 3,000 15,394
United News & Media PLC 2,000 25,153
--------
432,442
--------
TOTAL INVESTMENTS -- 63.8%
(Cost $2,426,017) 2,232,749
OTHER ASSETS LESS
LIABILITIES -- 36.2% 1,264,622
--------
NET ASSETS -- 100.0% $ 3,497,371
========
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1997:
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE RECEIVE FOR AT VALUE (DEPRECIATION)
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/97 Buy CHF 17,751 $ 12,688 $ 12,698 $ 10
11/97 Buy DEM 58,911 34,290 34,208 (82)
11/97 Buy ESP 1,325,280 9,139 9,118 (21)
11/97 Buy NLG 96,533 49,913 49,708 (205)
11/97 Buy NOK 60,482 8,612 8,629 17
11/97 Buy SEK 66,562 8,876 8,901 25
--------
$ 123,518 $123,262 $ (256)
========
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all foreign stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
See Notes to Financial Statements.
36
<PAGE> 39
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- -------------------------------------------------------
ASMT JANUS CAPITAL
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 56.2%
AIRLINES -- 1.8%
UAL Corp.* 1,625 $ 142,391
--------
BEVERAGES -- 1.4%
Coca-Cola Enterprises,
Inc. 4,081 114,778
--------
CHEMICALS -- 2.9%
Cytec Industries, Inc.* 1,630 79,462
Dupont (E.I.) de
Nemours & Co. 1,359 77,293
Monsanto Co. 1,590 67,972
Solutia, Inc.* 318 7,036
--------
231,763
--------
CLOTHING &
APPAREL -- 0.0%
Polo Ralph Lauren
Corp.* 75 1,950
--------
COMPUTER HARDWARE -- 6.4%
Compaq Computer Corp.* 4,050 258,187
Dell Computer Corp.* 2,100 168,262
Veritas Software Corp.* 2,000 83,250
--------
509,699
--------
COMPUTER SERVICES & SOFTWARE -- 7.4%
Edwards (J.D.) & Co.* 2,325 79,050
First Data Corp. 1,995 57,980
Microsoft Corp.* 2,550 331,500
Saville Systems Ireland
PLC [ADR]* 2,000 119,500
--------
588,030
--------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.0%
AES Corp.* 1,150 45,569
Applied Materials,
Inc.* 2,300 76,762
Electronics for
Imaging, Inc.* 408 19,074
General Electric Co. 2,000 129,125
Philips Electronics NV
[ADR] 25 1,959
Teradyne, Inc.* 2,000 74,875
Texas Instruments, Inc. 525 56,011
--------
403,375
--------
ENTERTAINMENT & LEISURE -- 1.9%
Travel Services
International, Inc.* 6,850 153,269
--------
FARMING & AGRICULTURE -- 0.7%
Delta & Pine Land Co. 1,475 54,944
--------
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
FINANCIAL -- BANK & TRUST -- 2.8%
Banc One Corp. 600 $ 31,275
Citicorp 1,200 150,075
GSB Financial Corp.* 200 3,012
Mercantile
Bancorporation, Inc. 852 41,375
--------
225,737
--------
FINANCIAL SERVICES -- 4.0%
FirstSpartan Financial
Corp. 125 4,563
Merrill Lynch & Co.,
Inc. 2,768 187,186
SLM Holding Corp. 890 124,934
--------
316,683
--------
FOOD -- 1.5%
Sara Lee Corp. 2,400 122,700
--------
HEALTHCARE
SERVICES -- 0.5%
United Healthcare Corp. 775 35,892
--------
OIL & GAS -- 11.1%
Diamond Offshore
Drilling, Inc. 4,692 292,077
Exxon Corp. 560 34,405
Santa Fe International
Corp. 125 6,148
Schlumberger Ltd. 2,450 214,375
TransCoastal Marine
Services, Inc.* 12,300 305,963
Transocean Offshore,
Inc. 596 32,184
--------
885,152
--------
PHARMACEUTICALS -- 6.5%
Kos Pharmaceuticals,
Inc.* 1,725 61,669
Lilly (Eli) & Co. 436 29,158
Pfizer, Inc. 2,528 178,856
Warner-Lambert Co. 1,766 252,869
--------
522,552
--------
</TABLE>
37
<PAGE> 40
=======================================================
ASMT JANUS CAPITAL
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 1.6%
Lucent Technologies,
Inc. 1,000 $ 82,438
Qwest Communication
International, Inc.* 750 46,313
--------
128,751
--------
TRANSPORTATION -- 0.6%
Federal Express Corp.* 700 46,725
--------
TOTAL COMMON STOCK
(Cost $4,477,702) 4,484,391
---------
FOREIGN STOCK -- 0.1%
ELECTRONIC COMPONENTS & EQUIPMENT
Philips Electronics NV
(Cost $3,913) 4,151
--------
PAR
(000)
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 42.6%
Federal Home Loan
Mortgage Corp.
5.65%, 11/03/97
(Cost $3,398,933) $ 3,400 3,398,933
---------
SHORT-TERM INVESTMENTS -- 0.4%
Temporary Investment
Cash Fund 16,849 16,849
Temporary Investment
Fund 16,849 16,849
--------
(Cost $33,698) 33,698
--------
TOTAL INVESTMENTS -- 99.2%
(Cost $7,914,248) 7,921,173
OTHER ASSETS LESS
LIABILITIES -- 0.8% 61,604
--------
NET ASSETS -- 100.0% $ 7,982,777
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
<TABLE>
<CAPTION>
ASMT INVESCO EQUITY INCOME PORTFOLIO
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 64.5%
AEROSPACE -- 1.1%
AlliedSignal, Inc. 2,000 $ 72,000
----------
<CAPTION>
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
AUTOMOBILE MANUFACTURERS -- 1.9%
Ford Motor Co. 2,000 $ 87,375
General Motors Corp. 500 32,094
----------
119,469
----------
BEVERAGES -- 1.1%
Anheuser-Busch Companies,
Inc. 1,800 71,887
----------
CHEMICALS -- 1.3%
Dow Chemical Co. 900 81,675
----------
COMPUTER HARDWARE -- 1.5%
International Business
Machines Corp. 1,000 98,062
----------
COMPUTER SERVICES & SOFTWARE -- 2.8%
Edwards (J.D.) & Co.* 3,500 119,000
CompUSA, Inc.* 2,000 65,500
----------
184,500
----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 6.5%
Emerson Electric Co. 1,200 62,925
General Electric Co. 1,600 103,300
Northern States Power Co.
of Minnesota 1,300 65,488
Tandy Corp. 2,800 96,250
Texas Instruments, Inc. 900 96,021
----------
423,984
----------
FINANCIAL -- BANK & TRUST -- 3.7%
Bank of New York Co.,
Inc. 2,100 98,831
Charter One Financial,
Inc. 900 52,312
Mellon Bank Corp. 1,700 87,656
----------
238,799
----------
FINANCIAL SERVICES -- 3.1%
Ahmanson (H.F.) & Co. 1,700 100,300
Beneficial Corp. 1,300 99,694
----------
199,994
----------
FOOD -- 3.0%
General Mills, Inc. 1,550 102,300
Kellogg Co. 2,200 94,737
----------
197,037
----------
</TABLE>
See Notes to Financial Statements.
38
<PAGE> 41
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
HEALTHCARE SERVICES -- 1.6%
Tenet Healthcare Corp.* 3,400 $ 103,912
----------
INSURANCE -- 2.4%
C.H. Robinson Worldwide,
Inc.* 2,000 44,000
Ohio Casualty Corp. 2,500 110,625
----------
154,625
----------
OIL & GAS -- 9.6%
Apache Corp. 2,400 100,800
Baker Hughes Inc. 1,400 64,312
Chevron Corp. 1,200 99,525
Exxon Corp. 1,600 98,300
National Fuel Gas Co. 1,500 66,187
Phillips Petroleum Co. 2,100 101,587
Schlumberger Ltd. 1,100 96,250
----------
626,961
----------
PAPER & FOREST PRODUCTS -- 1.5%
Fort James Corp. 2,500 99,219
----------
PHARMACEUTICALS -- 4.0%
American Home Products
Corp. 1,100 81,538
Merck & Co., Inc. 800 71,400
Smithkline Beecham PLC
[ADR] 2,200 104,775
----------
257,713
----------
RAILROADS -- 2.6%
Burlington Northern Santa
Fe Corp. 800 76,000
Kansas City Southern
Industries, Inc. 3,000 91,500
----------
167,500
----------
REAL ESTATE -- 2.1%
Health and Retirement
Property Trust [REIT] 3,600 67,500
Kilroy Realty Corp.
[REIT] 2,600 68,900
----------
136,400
----------
RETAIL & MERCHANDISING -- 2.7%
Penney (J.C.) Co., Inc. 1,400 82,163
Williams-Sonoma, Inc.* 2,400 96,300
----------
178,463
----------
SEMI-CONDUCTORS -- 1.6%
Analog Devices, Inc.* 3,300 100,856
---------
<CAPTION>
- ------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 7.8%
Ameritech Corp. 1,000 $ 65,000
Bell Atlantic Corp. 1,000 79,875
France Telecom SA [ADR]* 3,000 113,625
GTE Corp. 1,600 67,900
SBC Communications, Inc. 1,300 82,713
U.S. West Communications
Group 2,500 99,531
----------
508,644
----------
UTILITIES -- ELECTRIC -- 2.6%
Endesa [ADR] 5,000 93,125
Unicom Corp. 2,800 78,400
----------
171,525
----------
TOTAL COMMON STOCK
(Cost $4,138,511) 4,193,225
----------
PREFERRED STOCK -- 0.4%
PRINTING & PUBLISHING
K-III Communications
Corp.
(Cost $26,500) 1,000 26,450
----------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000)
------
<S> <C> <C>
CORPORATE OBLIGATIONS -- 17.0%
BROADCASTING -- 1.8%
Allbritton Communications
Co. Sr. Sub. Debs.
11.50%, 08/15/04 $ 50 52,563
SFX Broadcasting, Inc.
Sr. Sub. Notes
10.75%, 05/15/06 25 27,312
Teleport Communications
Group, Inc. Sr. Disc.
Notes [STEP] 9.186%,
07/01/07 50 39,124
------------
118,999
------------
COMPUTER HARDWARE -- 0.8%
International Business
Machines Corp. Debs.
6.22%, 08/01/27 50 50,500
------------
</TABLE>
39
<PAGE> 42
- -------------------------------------------------------
ASMT INVESCO EQUITY
INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PAR
(000) VALUE
- ------------------------------------------------------
<S> <C> <C>
ENERGY SERVICES -- 1.9%
Tuscon Electric Power Co.
Notes
7.65%, 05/01/03 $ 45 $ 44,325
Metropolitan Edison Co.
Notes
8.15%, 01/30/23 75 80,510
------------
124,835
------------
ENTERTAINMENT & LEISURE -- 1.6%
Time Warner Entertainment
Debs.
7.25%, 09/01/08 100 104,000
------------
FINANCIAL SERVICES -- 0.5%
Lehman Brothers Holdings,
Inc. Sr. Notes
8.80%, 03/01/15 25 29,438
------------
HEALTHCARE SERVICES -- 0.8%
FHP International Corp.
Sr. Notes
7.00%, 09/15/03 50 50,313
------------
INSURANCE -- 0.9%
Equitable Companies, Inc.
Sr. Notes
9.00%, 12/15/04 50 56,875
------------
OIL & GAS -- 1.5%
Noram Energy Corp. Sub.
Deb. [CVT] 6.00%,
03/15/12 50 45,500
Pacific Gas & Electric
First Ref. Mtge.
8.00%, 10/01/25 50 52,438
------------
97,938
------------
PAPER & FOREST PRODUCTS -- 1.5%
Champion International
Corp. Debs.
6.40%, 02/15/06 100 98,601
------------
<CAPTION>
- ------------------------------------------------------
PAR
(000) VALUE
- ------------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS -- 0.4%
McKesson Corp. Sub. Debs.
4.50%, 03/01/04 $ 25 $ 22,375
------------
TELECOMMUNICATIONS -- 3.4%
Frontier Corp.
7.25%, 05/15/04 100 103,875
Mcleod USA, Inc. Sr.
Disc. Notes
[STEP] 144A
9.587%, 03/01/07 100 69,000
Nextlink Communications
Sr. Notes
9.625%, 10/01/07 50 50,500
------------
223,375
------------
UTILITIES -- 1.9%
Boston Edison Co. Debs.
7.80%, 03/15/23 25 25,750
Potomac Electric Power
First Mtge.
6.25%, 10/15/04 100 100,625
------------
126,375
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $1,101,884) 1,103,624
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 21.5%
Federal Home Loan Mtge.
Corp.
5.46%, 11/03/97 300 299,909
5.48%, 11/04/97 1,100 1,099,497
------------
(Cost $1,399,406) 1,399,406
------------
COMMERCIAL PAPER -- 3.8%
Merrill Lynch & Co., Inc.
5.56%, 11/03/97
(Cost $249,923) 250 249,923
------------
</TABLE>
40
<PAGE> 43
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- -------------------------------------------------------
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 2.3%
Temporary Investment
Cash Fund 74,877 $ 74,877
Temporary Investment
Fund 74,876 74,876
------------
(Cost $149,753) 149,753
------------
TOTAL INVESTMENTS -- 109.5%
(Cost $7,065,977) $7,122,381
LIABILITES IN EXCESS OF OTHER
ASSETS -- (9.5%) (619,700)
------------
NET ASSETS -- 100.0% $6,502,681
============
</TABLE>
- -------------------------------------------------------
144A -- Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers. At the end of the period, these securities
amounted to 1.1% of net assets.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
ASMT PIMCO TOTAL RETURN BOND PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 19.9%
Federal Home Loan
Mortgage Corp.
5.48%, 11/28/97 $ 200 $ 199,178
5.48%, 12/15/97 200 198,661
----------
397,839
----------
Federal National
Mortgage Association
5.47%, 01/15/98 100 98,895
----------
Government National
Mortgage Association
[TBA]
7.00%, 11/19/27 500 502,815
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $996,699) 999,549
----------
U.S. TREASURY OBLIGATIONS -- 38.0%
U.S. Treasury Bonds
6.25%, 08/15/23 250 250,608
6.75%, 08/15/26 1,010 1,084,013
----------
1,334,621
----------
U.S. Treasury Notes
7.00%, 07/15/06 536 574,479
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,851,502) 1,909,100
----------
COMMERCIAL PAPER -- 45.6%
Ameritech Corp.
5.49%, 12/04/97 100 99,490
BellSouth Telecom, Inc.
5.52%, 11/12/97 100 99,831
Caisse D'Amortissement
de la Dette Sociale
5.49%, 12/12/97 100 99,368
Canadian Treasury Bills
5.49%, 11/21/97 100 99,695
Canadian Wheat Board
5.50%, 11/12/97 100 99,832
Du Pont (E.I.) de
Nemours & Co.
5.50%, 11/24/97 200 199,297
Emerson Electric Corp.
5.50%, 11/20/97 100 99,710
Florida Power Corp.
5.50%, 11/04/97 100 99,954
</TABLE>
See Notes to Financial Statements.
41
<PAGE> 44
- -------------------------------------------------------
ASMT PIMCO TOTAL RETURN
BOND PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
Ford Motor Credit Co.
5.58%, 01/14/98 $ 100 $ 98,886
General Electric Capital
Corp.
5.51%, 11/20/97 100 99,704
General Motors
Acceptance Corp.
5.54%, 11/25/97 100 99,624
IBM Credit Corp.
5.52%, 12/10/97 100 99,402
KFW International
Financial
5.49%, 11/13/97 100 99,817
National Rural Utility
Corp.
5.49%, 11/18/97 100 99,736
New Center Asset Trust
5.56%, 01/21/98 100 98,778
Procter & Gamble Corp.
5.47%, 12/08/97 100 99,438
Sara Lee Corp.
5.48%, 12/22/97 100 99,211
United Parcel Service
Co.
5.50%, 11/05/97 100 99,939
Wal Mart Stores, Inc.
5.50%, 12/01/97 200 199,083
Western Australia
Treasury Corp.
5.50%, 12/18/97 100 99,270
Wisconsin Electric &
Power Co.
5.52%, 11/06/97 100 99,923
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
----------
TOTAL COMMERCIAL PAPER
(Cost $2,289,981) $ 2,289,988
----------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 4.8%
Temporary Investment
Cash Fund 120,102 $ 120,102
Temporary Investment
Fund 120,105 120,105
------------
(Cost $240,207) 240,207
------------
TOTAL INVESTMENTS -- 108.3%
(Cost $5,378,389) 5,438,844
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (8.3%) (414,301)
------------
NET ASSETS -- 100.0% $5,024,543
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
See Notes to Financial Statements.
42
<PAGE> 45
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- -------------------------------------------------------
ASMT JPM MONEY
MARKET PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
PAR
(000) VALUE
- ------------------------------------------------------
<S> <C> <C>
U.S. TREASURY OBLIGATIONS -- 91.4%
U.S. Treasury Bills
4.55%, 11/13/97 $ 37 $ 36,944
4.60%, 11/13/97 34 33,948
4.65%, 11/13/97 308 307,523
4.67%, 11/13/97 280 279,564
4.69%, 11/13/97 125 124,805
4.70%, 11/13/97 21 20,967
4.715%, 11/13/97 45 44,929
4.74%, 11/13/97 111 110,825
4.83%, 11/13/97 16 15,974
4.85%, 11/13/97 157 156,746
4.855%, 11/13/97 56 55,909
4.87%, 11/13/97 21 20,966
4.90%, 11/13/97 343 342,440
4.935%, 11/13/97 41 40,932
5.10%, 01/22/98 25 24,709
5.13%, 01/22/98 32 31,626
5.135%, 01/22/98 177 174,930
----------
(Cost $1,823,737) 1,823,737
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES
------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 8.9%
Temporary Investment
Cash Fund 88,941 88,941
Temporary Investment
Fund 88,941 88,941
------------
(Cost $177,882) 177,882
------------
TOTAL INVESTMENTS -- 100.3%
(Cost $2,001,619) 2,001,619
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.3%) (6,724)
------------
NET ASSETS -- 100.0% $1,994,895
============
</TABLE>
DEFINITION OF ABBREVIATIONS
- -------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED THROUGHOUT THE SCHEDULES OF INVESTMENTS:
SECURITY DESCRIPTIONS:
<TABLE>
<S> <C> <C>
ADR -- American Depositary Receipt
ADS -- American Depositary Shares
CVT -- Convertible Security
REIT -- Real Estate Investment Trust
STEP -- Stepped Coupon Bond (Rates shown are the
effective yields at purchase date.)
TBA -- To be Announced Security
COUNTRIES/CURRENCIES:
CHF -- Switzerland/Swiss Franc
DEM -- Germany/German Deutschemark
ESP -- Spain/Spanish Peseta
NLG -- Netherlands/Netherland Guilder
NOK -- Norway/Norwegian Krone
SEK -- Sweden/Swedish Krona
</TABLE>
43
<PAGE> 46
OCTOBER 31, 1997
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT T. ASMT PIMCO
ROWE PRICE ASMT INVESCO TOTAL
INTERNATIONAL ASMT JANUS EQUITY RETURN ASMT JPM
EQUITY CAPITAL GROWTH INCOME BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
============= ============== ============= =========== ============
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Securities at Value
(A) $ 2,232,749 $7,921,173 $7,122,381 $5,438,844 $2,001,619
Cash 1,569,633 -- -- -- --
Receivable For:
Securities Sold -- -- 22,621 -- --
Dividends and Interest 4,551 3,519 29,256 29,953 69
Contributions 74,343 314,067 507,906 69,125 178,619
Deferred Organization Costs 23,608 23,608 23,694 23,694 23,705
Unrealized Appreciation on Foreign
Currency Exchange Contracts 52 -- -- -- --
---------- ---------- ---------- ---------- ----------
Total Assets 3,904,936 8,262,367 7,705,858 5,561,616 2,204,012
---------- ---------- ---------- ---------- ----------
LIABILITIES:
Cash Overdraft -- 9,012 -- -- 176,840
Payable to Investment Manager 28,480 33,122 28,835 28,742 26,200
Payable For:
Securities Purchased 358,011 221,400 1,162,497 500,000 --
Accrued Expenses 20,766 16,056 11,845 8,331 6,077
Unrealized Depreciation on Foreign
Currency Exchange Contracts 308 -- -- -- --
---------- ---------- ---------- ---------- ----------
Total Liabilities 407,565 279,590 1,203,177 537,073 209,117
---------- ---------- ---------- ---------- ----------
NET ASSETS $ 3,497,371 $7,982,777 $6,502,681 $5,024,543 $1,994,895
========== ========== ========== ========== ==========
(A) Investments at Cost $ 2,426,017 $7,914,248 $7,065,977 $5,378,389 $2,001,619
========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements.
44
<PAGE> 47
AMERICAN SKANDIA ADVISOR FUNDS, INC.
FOR THE PERIOD ENDED OCTOBER 31, 1997
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT
T. ROWE PRICE ASMT PIMCO
INTERNATIONAL ASMT JANUS ASMT INVESCO TOTAL RETURN ASMT JPM MONEY
EQUITY CAPITAL GROWTH EQUITY INCOME BOND MARKET
PORTFOLIO(1) PORTFOLIO(1) PORTFOLIO(2) PORTFOLIO(2) PORTFOLIO(3)
============ ============== ================ ============== ==============
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 6,642 $17,736 $ 19,153 $ 39,783 $ 11,400
Dividends 5,831 23,504 16,622 -- --
Foreign Taxes Withheld (904) (4,643) (3,513) (472) (26)
--------- ------- -------- ------- -------
Total Investment Income 11,569 36,597 32,262 39,311 11,374
--------- ------- -------- ------- -------
EXPENSES:
Advisory Fees 4,658 10,500 4,791 4,456 1,134
Shareholder Servicing Fees 300 300 300 300 300
Administration and Accounting
Fees 5,075 5,150 5,089 5,034 5,005
Custodian Fees 10,233 750 852 474 661
Professional Fees 6,087 8,905 3,436 2,564 205
Organization Costs 1,537 1,537 1,451 1,451 1,441
Trustees' Fees and Expenses 968 1,564 695 574 165
Insurance Fees 307 637 352 392 138
--------- ------- -------- ------- -------
Total Expenses 29,165 29,343 16,966 15,245 9,049
--------- ------- -------- ------- -------
NET INVESTMENT INCOME (LOSS) (17,596) 7,254 15,296 24,066 2,325
--------- ------- -------- ------- -------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on:
Securities 629 10,688 (18,651) 6,883 32
Foreign Currency
Transactions (111) 5 -- -- --
--------- ------- -------- ------- -------
Net Realized Gain (Loss) 518 10,693 (18,651) 6,883 32
--------- ------- -------- ------- -------
Net Change in Unrealized
Appreciation (Depreciation)
on:
Securities (193,268) 6,925 56,404 60,455 --
Translation of Assets and
Liabilities Denominated
in Foreign Currencies (1,636) -- -- -- --
--------- ------- -------- ------- -------
Net Change in Unrealized
Appreciation (Depreciation) (194,904) 6,925 56,404 60,455 --
--------- ------- -------- ------- -------
Net Gain (Loss) on Investments (194,386) 17,618 37,753 67,338 32
--------- ------- -------- ------- -------
Net Increase (Decrease) in Net
Assets Resulting from
Operations $(211,982) $24,872 $ 53,049 $ 91,404 $ 2,357
========= ======= ======== ======= =======
</TABLE>
(1) Commenced operations on June 10, 1997.
(2) Commenced operations on June 18, 1997.
(3) Commenced operations on June 19, 1997.
See Notes to Financial Statements.
45
<PAGE> 48
FOR THE PERIOD ENDED OCTOBER 31, 1997
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT
T. ROWE PRICE ASMT JANUS ASMT INVESCO ASMT PIMCO ASMT JPM
INTERNATIONAL CAPITAL EQUITY TOTAL RETURN MONEY
EQUITY GROWTH INCOME BOND MARKET
PORTFOLIO(1) PORTFOLIO(1) PORTFOLIO(2) PORTFOLIO(2) PORTFOLIO(3)
============== ============ ============ ============== ============
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (17,596) $ 7,254 $ 15,296 $ 24,066 $ 2,325
Net Realized Gain (Loss) on
Investments 518 10,693 (18,651) 6,883 32
Net Change in Unrealized Appreciation
(Depreciation) on Investments (194,904) 6,925 56,404 60,455 --
---------- ----------- ---------- ----------- -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations (211,982) 24,872 53,049 91,404 2,357
---------- ----------- ---------- ----------- -----------
CAPITAL TRANSACTIONS:
Contributions by Partners 4,291,113 9,561,074 6,911,291 6,540,625 3,320,611
Withdrawals by Partners (601,760) (1,623,169) (481,659) (1,627,486) (1,348,073)
---------- ----------- ---------- ----------- -----------
Net Increase in Net Assets from Capital
Transactions 3,689,353 7,937,905 6,429,632 4,913,139 1,972,538
---------- ----------- ---------- ----------- -----------
Net Increase in Net Assets 3,477,371 7,962,777 6,482,681 5,004,543 1,974,895
NET ASSETS:
Beginning of Period 20,000 20,000 20,000 20,000 20,000
---------- ----------- ---------- ----------- -----------
End of Period $ 3,497,371 $ 7,982,777 $6,502,681 $ 5,024,543 $ 1,994,895
========== =========== ========== =========== ===========
</TABLE>
(1) Commenced operations on June 10, 1997.
(2) Commenced operations on June 18, 1997.
(3) Commenced operations on June 19, 1997.
See Notes to Financial Statements.
46
<PAGE> 49
AMERICAN SKANDIA ADVISOR FUNDS, INC.
FOR THE PERIOD ENDED OCTOBER 31, 1997
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET ASSETS
AT END OF PORTFOLIO AVERAGE RATIO OF NET INVESTMENT
PERIOD TURNOVER COMMISSION RATIO OF EXPENSES TO INCOME (LOSS) TO
(IN 000'S) RATE RATE PAID AVERAGE NET ASSETS(4) AVERAGE NET ASSETS(4)
---------- -------- ---------- --------------------- -----------------------
<S> <C> <C> <C> <C> <C>
ASMT T. Rowe Price
International Equity Portfolio
(1) $3,497 1% $ 0.0486 6.26% (3.78)%
ASMT Janus
Capital Growth Portfolio (1) $7,983 83% $ 0.0325 2.79% 0.69%
ASMT INVESCO
Equity Income Portfolio (2) $6,503 46% $ 0.0581 2.66% 2.39%
ASMT PIMCO Total
Return Bond Portfolio (2) $5,025 93% N/A 2.22% 3.51%
ASMT JPM
Money Market Portfolio (3) $1,995 N/A N/A 3.91% 1.00%
</TABLE>
(1) Commenced operations on June 10, 1997.
(2) Commenced operations on June 18, 1997.
(3) Commenced operations on June 19, 1997.
(4) Annualized
See Notes to Financial Statements.
47
<PAGE> 50
OCTOBER 31, 1997
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
================================================================================
American Skandia Master Trust (the "Trust") is an open-end management
investment company, registered under the Investment Company Act of 1940, as
amended. The Trust was organized on March 6, 1997 as a business trust under the
laws of the State of Delaware. The Trust operates as a series company and, at
October 31, 1997, consisted of five diversified portfolios: ASMT T. Rowe Price
International Equity Portfolio ("International Equity"), ASMT Janus Capital
Growth Portfolio ("Capital Growth"), ASMT INVESCO Equity Income Portfolio
("Equity Income"), ASMT PIMCO Total Return Bond Portfolio ("Total Return Bond"),
and ASMT JPM Money Market Portfolio ("Money Market") (each a "Portfolio" and
collectively the "Portfolios").
2. SIGNIFICANT ACCOUNTING POLICIES
================================================================================
The following is a summary of significant accounting policies followed by
the Trust, in conformity with generally accepted accounting principles, in the
preparation of its financial statements. The preparation of financial statements
requires management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could differ
from those estimates.
SECURITY VALUATION -- Securities are valued at the close of trading on the New
York Stock Exchange. Equity securities are valued at the last reported sales
price on the securities exchange on which they are primarily traded, or at the
last reported sales price on the NASDAQ National Securities Market. Securities
not listed on an exchange or securities market, or securities in which there
were no transactions, are valued at the average of the most recent bid and asked
prices.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service. Debt
securities of Money Market are valued at amortized cost, which approximates
market value. For Portfolios other than Money Market, debt securities which
mature in 60 days or less are valued at cost (or market value 60 days prior to
maturity), adjusted for amortization to maturity of any premium or discount.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by, or at the direction of, the Board of
Trustees. As of October 31, 1997, there were no securities valued by the Board
of Trustees.
FOREIGN CURRENCY TRANSLATION -- Securities and other assets and liabilities
denominated in foreign currencies are converted each business day into U.S.
dollars based on the prevailing rates of exchange. Purchases and sales of
portfolio securities and income and expenses are converted into U.S. dollars on
the respective dates of such transactions.
Gains and losses resulting from changes in exchange rates applicable to
foreign securities are not reported separately from gains and losses arising
from movements in securities prices.
Net realized foreign exchange gains and losses include gains and losses
from sales and maturities of foreign currency exchange contracts, gains and
losses realized between the trade and settlement dates of foreign securities
transactions, and the difference between the amount of net investment income
accrued on
48
<PAGE> 51
AMERICAN SKANDIA ADVISOR FUNDS, INC.
foreign securities and the U.S. dollar amount actually received. Net unrealized
foreign exchange gains and losses include gains and losses from changes in the
value of assets and liabilities other than portfolio securities, resulting from
changes in exchange rates.
FOREIGN CURRENCY EXCHANGE CONTRACTS -- A foreign currency exchange contract
("FCEC") is a commitment to purchase or sell a specified amount of a foreign
currency at a specified future date, in exchange for either a specified amount
of another foreign currency or U.S. dollars.
FCECs are valued at the forward exchange rates applicable to the underlying
currencies, and changes in market value are recorded as unrealized gains and
losses until the contract settlement date.
Risks could arise from entering into FCECs if the counter-parties to the
contracts were unable to meet the terms of their contracts. In addition, the use
of FCECs may not only hedge against losses on securities denominated in foreign
currency, but may also reduce potential gains on securities from favorable
movements in exchange rates.
REPURCHASE AGREEMENTS -- A repurchase agreement is a commitment to purchase
government securities from a seller who agrees to repurchase the securities at
an agreed on price and date. The excess of the resale price over the purchase
price determines the yield on the transaction. Under the terms of the agreement,
the market value, including accrued interest, of the government securities will
be at least equal to their repurchase price. Repurchase agreements are recorded
at cost, which, combined with accrued interest, approximates market value.
Repurchase agreements entail a risk of loss in the event that the seller
defaults on its obligation to repurchase the securities. In such case, the
Portfolio may be delayed or prevented from exercising its right to dispose of
the securities.
DEFERRED ORGANIZATION COSTS -- The Trust bears all costs in connection with its
organization. All such costs are amortized on a straight-line basis over a
five-year period beginning on the date of the commencement of operations.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are
accounted for on the trade date. Realized gains and losses from securities sold
are recognized on the specific identification basis. Dividend income is recorded
on the ex-dividend date. Corporate actions, including dividends, on foreign
securities are recorded on the ex-dividend date or, if such information is not
available, as soon as reliable information is available from the Trust's
sources. Interest income is recorded on the accrual basis and includes the
accretion of discount and amortization of premium.
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
================================================================================
The Portfolios have entered into investment management agreements with
American Skandia Investment Services, Inc. ("Investment Manager") which provide
that the Investment Manager will furnish each Portfolio with investment advice
and investment management and administrative services. The Investment Manager
has engaged the following firms as Sub-advisors for their respective Portfolios:
Rowe Price-Fleming International, Inc., a United Kingdom Corporation, for
International Equity; Janus Capital
49
<PAGE> 52
Corporation for Capital Growth; INVESCO Trust Co. for Equity Income; Pacific
Investment Management Co. for Total Return Bond; and J. P. Morgan Investment
Management Inc. for Money Market.
The Investment Manager receives a fee, computed daily and paid monthly,
based on an annual rate of 1.00%, 1.00%, .75%, .65%, and .50% of the average
daily net assets of the International Equity, Capital Growth, Equity Income,
Total Return Bond, and Money Market Portfolios, respectively. The Investment
Manager pays each Sub-advisor a fee, computed daily and paid monthly, based on
an annual rate of .75%, .45%, .35%, .25%, and .15% of the average daily net
assets of the International Equity, Capital Growth, Equity Income, Total Return
Bond, and Money Market Portfolios, respectively. The Sub-advisors for
International Equity and Money Market are currently voluntarily waiving a
portion their fee payable by the Investment Manager. The annual rates of the
fees payable to the Sub-advisors for International Equity and Money Market are
reduced for Portfolio net assets in excess of specified levels.
Certain officers and Trustees of the Trust are officers or directors of the
Investment Manager. The Trust pays no compensation directly to its officers or
interested Trustees.
4. TAX MATTERS
================================================================================
The Portfolios will be treated as partnerships for federal income tax
purposes. Accordingly, each investor in the Portfolios will be allocated its
share of net investment income and realized and unrealized gains and losses from
investment transactions. It is intended that the Portfolios will be managed in
such a way that an investor will be able to satisfy the requirements of the
Internal Revenue Code applicable to regulated investment companies.
5. PORTFOLIO SECURITIES
================================================================================
Purchases and sales of securities, other than U.S. government securities,
and short-term obligations, during the period ended October 31, 1997, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
====================== ======================
<S> <C> <C>
International Equity $4,366,469 $ 8,880
Capital Growth 5,972,039 1,501,112
Equity Income 6,030,830 744,868
</TABLE>
Purchases and sales of U.S. government securities, during the period end
October 31, 1997, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
====================== ======================
<S> <C> <C>
Total Return Bond $3,340,178 $ 995,352
</TABLE>
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<PAGE> 53
AMERICAN SKANDIA ADVISOR FUNDS, INC.
At October 31, 1997, the cost and unrealized appreciation or depreciation
in value of the investments owned by the Portfolios, for federal income tax
purposes, were as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
========== ============ ============= ==============
<S> <C> <C> <C> <C>
International Equity $2,426,017 $ 27,818 $221,086 $ (193,268)
Capital Growth 7,914,248 317,320 310,395 6,925
Equity Income 7,067,538 136,836 81,993 54,843
Total Return Bond 5,378,389 60,522 67 60,455
Money Market 2,001,619 -- -- --
</TABLE>
51
<PAGE> 54
REPORT OF INDEPENDENT ACCOUNTANTS
To the Investors and Board of Trustees of
American Skandia Master Trust:
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of the American Skandia Master Trust
(the "Trust"), comprising, respectively, ASMT T. Rowe Price International Equity
Portfolio, ASMT Janus Capital Growth Portfolio, ASMT INVESCO Equity Income
Portfolio, ASMT PIMCO Total Return Bond Portfolio and ASMT JPM Money Market
Portfolio as of October 31, 1997, and their related statements of operations,
changes in net assets and supplementary data for each of the periods presented.
These financial statements and supplementary data are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and the supplementary data based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatements. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
investments owned as of October 31, 1997, by correspondence with custodians and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and supplementary data referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned portfolios of the American Skandia Master Trust as of
October 31, 1997, and the results of their operations, the changes in their net
assets and their supplementary data for each of the periods presented, in
conformity with accounting principles generally accepted in the United States of
America.
COOPERS & LYBRAND
Chartered Accountants and Registered Auditors
Dublin, Republic of Ireland
December 12, 1997
52
<PAGE> 55
Board of Directors
Gordon C. Boronow
Jan R. Carendi
David E. A. Carson
Julian A. Lerner
Thomas M. Mazzaferro
Thomas M. O'Brien
F. Don Schwartz
Investment Manager
American Skandia Investment Services, Incorporated
Shelton, CT 06484
Distributor
American Skandia Marketing, Incorporated
Shelton, CT 06484
Transfer Agent
Boston Financial Data Services, Inc.
Quincy, MA 02171
Administrator
PFPC Inc.
Wilmington, DE 19809
Independent Accountants
Coopers & Lybrand, L.L.P.
Philadelphia, PA 19103
Custodian
For domestic securities of Funds and Portfolios
investing primarily in domestic securities:
PNC Bank
Philadelphia, PA 19113
Co-custodian for foreign securities of Funds and
Portfolios investing primarily in domestic
securities and custodian for Funds and Portfolios
investing primarily in foreign securities:
Morgan Stanley Trust Company
New York, NY 11201
Legal Counsel
Werner & Kennedy
New York, NY 10019
<PAGE> 56
AMERICAN SKANDIA ADVISOR FUNDS
Shares of the American Skandia Advisor Funds are:
- - not deposits or obligations of, or guaranteed or endorsed by, any bank
institution;
- - not federally insured by the Federal Deposit Insurance Corporation (FDIC),
the Federal Reserve Board, or any other government agency;
- - subject to investment risk, including the possible loss of the principal
amount invested.
The report and the financial statements contained herein are submitted for the
general information of the shareholders of the Funds. This report is not
authorized for distribution to prospective investors in a Fund unless preceded
or accompanied by a current prospectus.
For more information, including a prospectus, contact American Skandia
Marketing, Incorporated.
One Corporate Drive
P.O. Box 883
Shelton, CT 06484
Telephone: 800-752-6342 (800-SKANDIA)
Website: www.americanskandia.com
(12/97)
ASAF
AMERICAN SKANDIA ADVISOR FUNDS
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ANNUAL REPORT TO SHAREHOLDERS
October 31, 1997
