<PAGE> 1
October 31, 1998
Letter to Shareholders
Nineteen ninety-eight has been a great year for the American Skandia Advisor
Funds. Although there was little fundamental change in the US economy this year,
investment sentiment reflected concerns about the financial health of Asian
markets as well as the financial stability in other emerging markets.
Despite this market volatility, the American Skandia Advisor Funds are still
growing rapidly. With fund industry assets reaching new heights, net assets of
the American Skandia Advisor Funds now exceed $560 million, nearly $540 million
more than at the end of October, last year, when the funds had been in operation
for three months.
The American Skandia Advisor Funds also underwent some changes. Six new funds
were added to the family, providing you with even more investment choice. In
addition, checkwriting privileges became available on the ASAF JPM Money Market
Fund providing you with all the functionality you expect from a money market
fund.
With the quality of our asset managers and the wide range of asset categories,
we are confident that the American Skandia Advisor Funds will provide you with
the tools you need in the market of today and tomorrow.
We thank you for your support of the American Skandia Advisor Funds.
Sincerely,
WADE A. DOKKEN SIGNATURE
WADE A. DOKKEN
Chairman
American Skandia Investment Services, Incorporated
This letter is authorized for use only with shareholders of the American Skandia
Advisor Funds. American Skandia Advisor Funds are distributed by American
Skandia Marketing, Incorporated, located at One Corporate Drive, Shelton, CT
06484.
<PAGE> 2
TRUE BLANK
[DOES NOT PRINT]
<PAGE> 3
PERFORMANCE INFORMATION AND COMMENTARY
- --------------------------------------------------------------------------------
The following pages present information on the investment performance of
each Fund (other than the JPM Money Market Fund) which had been in operation for
six months or more at October 31, 1998, including comparisons with relevant
market indexes. Commentary by each Fund's sub-advisor regarding its performance
and relevant market conditions is also provided.
DEFINITIONS OF TERMS
TOTAL RETURN is net of all Fund expenses and shows how the value of a
fund's shares changed over time, assuming you held the shares through the entire
period and reinvested all distributions in the fund.
NAV -- Net asset value is the value of a fund's assets, minus any
liabilities, divided by the number of outstanding shares. NAV total returns do
not reflect initial or contingent deferred sales charges.
POP -- Public offering price is the net asset value of a mutual fund share
plus the maximum sales charge levied at the time of purchase. POP total returns
shown for Class A shares reflect the 4.25% maximum sales charge on the Federated
High Yield Bond and Total Return Bond Funds, and the 5.00% maximum sales charge
on all other Funds.
CDSC -- Contingent deferred sales charge is a charge applied at the time of
redemption, which declines the longer the shares have been held. CDSC total
returns assume redemption at the end of the period. CDSC total returns for Class
X shares reflect the crediting of bonus shares at the time of purchase.
EXPLANATIONS OF MARKET INDEXES
S&P 500 INDEX -- The Standard & Poor's 500 Index is an unmanaged
capitalization-weighted measure of 500 widely held common stocks listed on the
New York Stock Exchange, American Stock Exchange, and over-the-counter market.
RUSSELL 2000 INDEX -- The Russell 2000 Index is an unmanaged
capitalization-weighted index which is comprised of 2,000 of the smallest
capitalized U.S. domiciled companies whose common stock is traded in the U.S. on
the New York Stock Exchange, American Stock Exchange, and over-the-counter
market.
ML HIGH YIELD INDEX -- The Merrill Lynch High Yield Index is an unmanaged
index of publicly traded non-convertible U.S. bonds rated below investment
grade.
LB AGGREGATE INDEX -- The Lehman Brothers Aggregate Bond Index is an
unmanaged capitalization-weighted measure of treasury issues, agency issues,
corporate bond issues and mortgage securities.
MSCI EAFE INDEX -- The Morgan Stanley Capital International Europe,
Australia, Far East Index is an unmanaged capitalization-weighted index
generally accepted as a benchmark for major overseas markets.
BLENDED INDEX -- The Blended Index is calculated by weighting the S&P 500
Index at 60% and the Lehman Brothers Government/Corporate Bond Index at 40%. The
Lehman Brothers Government/ Corporate Bond Index is an unmanaged index comprised
of intermediate and long-term government and investment grade corporate debt
securities.
All index returns assume reinvestment of dividends and, unlike Fund
returns, do not reflect any fees or expenses.
1
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 4
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1998, the ASAF Founders International
Small Capitalization Fund's Class A shares had an NAV total return of 4.32%,
compared to a return on the unmanaged MSCI EAFE Index of 9.65%.
As economic troubles continue in Japan, Asia, Latin America and Russia, stock
markets around the world have suffered dramatic swings. The correction has
particularly hit small-cap stocks around the world as investors have sought the
most liquid, defensive stocks, generally larger-cap issues.
The Fund is still heavily weighted in Europe, with more than 80% of the equities
in the portfolio invested in European stocks. While a correction in Europe
impacted the Fund toward the end of the period, Founders believes the
fundamentals in the region are still very sound. However, they are still
watching the European economy carefully, believing several factors could make it
especially susceptible to weakness. Europe still has very high unemployment. In
addition, the conversion to the euro adds uncertainty to markets as we move into
1999. Nevertheless, Founders thinks they can continue to find the most
attractive investments in Europe.
Because of the current crisis in Asia, Founders has been very selective in the
Fund's holdings there. Founders thinks that although there are some signs that
countries in Asia are beginning to do some of the right things to resolve the
crisis, the crisis will continue to be measured in years, not in terms of weeks
or months. In fact, they think there's a strong possibility that 1999 will wind
up being as bad or a worse year economically for many of the Asian countries as
1998 has been.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP MSCI EAFE Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9377 9020
4/30/98 10962 10413
10/31/98 9778 9890
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 4.32% -0.90% 3.90% -2.10% 3.69% 2.69% 3.80% 0.40%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 2.34% -1.77% 1.85% -2.12% 1.77% 1.77% 1.70% -0.24%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
2
<PAGE> 5
ASAF FOUNDERS
SMALL CAPITALIZATION FUND
- --------------------------------------------------------------------------------
The ASAF Founders Small Capitalization Fund's Class A shares had an NAV total
return of -8.45% for the fiscal year ended October 31, 1998, compared to the
unmanaged Russell 2000 Index which returned -11.86%.
While Founders had expected small-caps to go down as large-caps corrected, they
had hoped that they would decline at a slower rate. The valuation differential
between large and small-cap securities is reaching multi-year highs. This leads
Founders to believe that we are closer to a turn in small-cap, however, there is
no way to accurately predict such a turn.
The dislocations caused by recent global currency and market volatility became
more obvious in late summer with the failure and subsequent bailout of hedge
fund Long Term Capital. However, the rescue package put together by large
brokers and the Federal Reserve has succeeded in stabilizing many markets and
currencies. The two subsequent Fed rate cuts have also eased fears of a credit
crunch, which could have put the U.S. into recession. Founders believes that if
the Fed and other central banks continue to ease aggressively, we will most
likely avert a severe recession in the U.S. and the Asian financial crisis could
ease. They believe, however, the economies will slow and earnings expectations
will have to be cut for 1999. If that happens, Founders believes there is a good
chance for a change in leadership from large-cap to small-cap stocks, given the
relative earnings growth of the sector. Their optimism stems from the historical
observation that generally when the Fed begins to aggressively ease and the
economy starts to slow, we are very close to the end of small-cap stock
underperformance.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP Russel 2000 Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9443 10496
4/30/98 10517 11741
10/31/98 8642 9251
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR -8.45% -13.00% -8.96% -14.42% -8.85% -9.76% -8.76% -11.95%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 -7.21% -10.94% -7.70% -11.38% -7.53% -7.53% -7.53% -9.37%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
3
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 6
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
Reflecting the difficult environment for small-cap stocks for most of 1998, the
T. Rowe Price Small Company Value Fund's Class A shares had an NAV total return
of -15.13% for the fiscal year ended October 31, 1998. During this same time
frame, the unmanaged S&P 500 Index returned a positive 21.98%, while the Fund's
benchmark, the unmanaged Russell 2000 Index, declined 11.86%, highlighting the
disparity between large and small-company stocks.
The overall U.S. stock market forged ahead until mid-summer, when Russia's
financial collapse triggered a massive sell-off in emerging market stocks. A
rising tide of concern brought stock prices down globally. However, the Federal
Reserve cut interest rates twice before the period ended, sparking a sharp
rebound among equities around the world. Small-cap stocks suffered worse in the
summer downturn as investors sought relative safety and liquidity. Likewise, the
rebound in small-cap stocks was less pronounced than among their larger-cap
counterparts. During the explosive October rally, investors favored growth
issues rather than the types of stocks that the Fund emphasizes.
Looking forward, T. Rowe Price is optimistic about the prospects for small-cap
stocks. They believe valuations in the small-cap market today are compelling
relative to large-caps, and that they can buy excellent companies with faster
growth and higher return potential than most large-caps at exceptional prices.
Historically, the small-cap performance cycles have lasted three to five years,
and small-caps have been in a down cycle since 1994. When they do outperform,
they can rise very rapidly. T. Rowe Price thinks that if the economy continues
to hold up, the outlook is good, but they do not know when the cycle will turn.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP Russell 2000 Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9937 10496
4/30/98 10778 11741
10/31/98 8431 9251
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR -15.13% -19.37% -15.63% -20.68% -15.71% -16.55% -15.63% -18.58%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 -9.02% -12.67% -9.58% -13.18% -9.58% -9.58% -9.58% -11.37%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
4
<PAGE> 7
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1998, the ASAF American Century Strategic
Balanced Fund's Class A shares had an NAV total return of 9.93%, compared to a
return of 17.3% for the unmanaged blended benchmark index (60% S&P 500 Index,
40% Lehman Brothers Government/Corporate Index).
The equity portion of the Fund, which may be invested in rapidly growing
companies of all capitalization sizes, continued to follow a two-tiered
approach. A large portion of the equities were kept in high-quality large-cap
growth stocks, and another portion in a more opportunistic weighting of rapidly
growing mid-cap stocks. The underperformance of the Fund can be partially
explained by the strong performance of the "nifty fifty" (top 50 stock holdings)
of the S&P 500 Index. The "nifty fifty" stocks significantly outperformed
mid-cap issues, accounting for 74% of the S&P 500 Index's performance over the
last year.
Although American Century shifted the Fund away from the mid-cap sector into
larger capitalization stocks over the course of the year, the Fund finished the
year underweight in four industries, in particular, which negatively impacted
performance. These industries were telecommunications, computer systems, banks,
and electrical utilities. The Fund was also overweight in the pharmaceutical
industry which detracted from performance, while overweight positions in the
insurance (life and home) industry and cable operators industry had a positive
impact on performance. The Fund's fixed-income portion, representing primarily
high-quality intermediate-term bonds, was a strong positive source of return in
the Fund over the last year.
<TABLE>
<CAPTION>
60% S&P 500/40%
Class A Shares LBGC Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9491 9859
4/30/98 10394 11308
10/31/98 10429 11621
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 9.93% 4.39% 9.45% 3.45% 9.33% 8.33% 9.34% 6.08%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 7.71% 3.39% 7.08% 3.17% 7.16% 7.16% 7.00% 5.23%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
5
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 8
ASAF FEDERATED
HIGH YIELD BOND FUND
- --------------------------------------------------------------------------------
The ASAF Federated High Yield Bond Fund's Class A shares had an NAV total return
of 1.67% for the fiscal year ended October 31, 1998, compared to returns of
1.19% for the unmanaged ML High Yield Index and -3.35% for the Lipper High
Current Yield Fund Average.
The Fund's strong performance during the period versus both benchmarks was the
result of several factors. Good individual issuer selection was a key component
to the Fund's success as investors became more sensitive to credit quality,
given turmoil in Asia and concerns about the domestic economy. The Fund
benefited from being overweight the telecommunication, cable TV and broadcasting
sectors which outperformed the overall market. The Fund also benefited from
being underweight cyclical industries. The Fund was negatively impacted versus
the Index by its lower quality profile, as higher quality BB-rated high yield
bonds outperformed lower quality B-rated high yield bonds.
Federated believes the performance of high yield bonds for the balance of 1998
and into 1999 will be heavily influenced by the performance of the U.S. economy
and domestic equity prices. They expect the U.S. economic expansion to continue,
driven by low interest rates, high consumer confidence, high rates of employment
and an accommodative Federal Reserve. However, they believe the rate of growth
will slow considerably from 1997's brisk pace as problems in Asia and other
emerging markets negatively impact U.S. economic activity. Federated continues
to maintain its higher quality bias, given its belief that growth will slow.
They remain overweight the telecommunication, cable TV and broadcasting sectors,
in the belief that secular changes will make these sectors relatively strong
performers.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP ML High Yield Index
<S> <C> <C>
7/28/97 9575 10000
10/31/97 9554 10215
4/30/98 10207 10751
10/31/98 9717 10337
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 1.67% -2.65% 1.25% -4.42% 1.26% 0.31% 1.26% -1.88%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 1.15% -2.25% 0.76% -2.97% 0.72% 0.72% 0.80% -0.93%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
6
<PAGE> 9
ASAF ROBERTSON STEPHENS
VALUE + GROWTH FUND
- --------------------------------------------------------------------------------
From the inception of the ASAF Robertson Stephens Value + Growth Fund on
December 31, 1997 through October 31, 1998 the Fund's Class A shares had an NAV
total return of 4.40%, which lagged the unmanaged S&P 500 Index return of
14.62%.
Investors and portfolio managers have endured a very challenging market
environment in 1998. In April, small and mid-cap stocks began a severe decline
that culminated in a sharp drop in August. From its April high, the small-cap
Russell 2000 Index declined more than 30%. Meanwhile, a very narrow band of
liquid, large-cap stocks led the S&P 500 Index higher in this same time period.
Late in the period, investors sold off even these liquid large-cap stocks,
sending the S&P 500 Index down 10% in the third calendar quarter. During the
first two quarters of the year an overweight position in technology hurt the
Fund's performance relative to the S&P 500 Index. Like most investors, the Fund
was impacted by the market's third quarter correction, as the Fund posted a
decline greater than the S&P 500 Index. The Fund was particularly impacted by
declines in its financial services holdings. The weakening stock market prompted
investors to severely penalize bank and brokerage stocks. Despite this weakness,
Robertson Stephens maintained the Fund's position in Merrill Lynch, under the
premise that their growth and leadership position can be maintained despite
market volatility.
Robertson Stephens remains committed to a significant overweight position in the
drug sector. While the Fund achieved mixed results in the drug companies (Merck,
Pfizer, Eli Lily), it realized strong gains from companies like Cardinal Health,
Inc. and McKesson Corporation that are the leaders in drug and product
distribution.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP S&P 500 Index
<S> <C> <C>
12/31/97 9500 10000
4/30/98 10859 11510
10/31/98 9915 11462
</TABLE>
TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 12/31/97 4.40% -0.85% 4.30% -1.70% 4.00% 3.00% 4.10% 0.70%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
7
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 10
ASAF LORD ABBETT
GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
From the inception of the ASAF Lord Abbett Growth and Income Fund on December
31, 1997 through October 31, 1998 the Fund's Class A shares had an NAV total
return of 5.48%, which lagged the unmanaged S&P 500 Index return of 14.62%.
The performance of the Fund's value-driven investment portfolio was somewhat
limited as a majority of investors sought safety in large-capitalization growth
stocks, and leadership in the market narrowed to a few securities, all in the
face of steadily increasing global economic turmoil.
The Federal Reserve's move to ease from a position of restraint in recent months
to combat global deflationary pressures has kept the U.S. economy relatively
buoyant. Lord Abbett still expects a slowing in the U.S. economy over the next
6-12 months, and that profit problems will spread from globally-dependent
commodity and manufacturing companies to corporations at large. With this in
mind, Lord Abbett remains somewhat defensively positioned in the portfolio with
major overweightings in electric utilities, telephones and waste management
companies. They have also built-up strong positions in selected technology
issues, which were hard hit earlier this year by weakness in Asia and PC
inventory problems in the U.S.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP S&P 500 Index
<S> <C> <C>
12/31/97 9500 10000
4/30/98 10574 11510
10/31/98 10017 11462
</TABLE>
TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 12/31/97 5.48% 0.17% 5.32% -0.68% 5.12% 4.12% 5.22% 1.85%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
8
<PAGE> 11
ASAF JANUS
OVERSEAS GROWTH FUND
- --------------------------------------------------------------------------------
For the ten months from inception on December 31, 1997 through October 31, 1998
the ASAF Janus Overseas Growth Fund's Class A shares had an NAV total return of
5.50%, compared to a 9.82% return for the unmanaged MSCI EAFE Index. Global
financial markets were extremely volatile during the period, buffeted by the
continuing financial crisis in Asia and growing concerns about financial
stability in other emerging markets.
The Fund's performance relative to the Index was influenced by its large
weighting in European stocks relative to the Index. This allocation initially
helped the Fund avoid the fall-out from the Asian crisis, while benefiting from
the consolidation, restructuring, and the approach of monetary union in Europe.
On the downside, this heavy European exposure hurt the Fund's performance during
the third calendar quarter, when the Russian financial collapse sparked an
indiscriminate sell-off in European stocks. This correction even impacted fast
growing companies with little exposure to the emerging markets. By late October,
there were signs that European stocks were beginning to rebound against a
backdrop of lower interest rates. Meanwhile, markets in the Far East received
support from tentative confidence in a Japanese plan to bail out its troubled
banking system.
During the year, Janus maintained its focus on quality growth companies with
leading franchises in the technology, telecommunications, and pharmaceuticals
industries. They also sought to capitalize on companies undergoing
restructurings aimed at unleashing value for shareholders. Janus took the
opportunity to build positions in quality European growth companies they
believed had been unduly sold during the third quarter. They reduced exposure to
the financial services industry, which was heavily impacted by its exposure to
Russia and hedge funds.
<TABLE>
<CAPTION>
Fund's Class A Shares Index: MSCI EAFE
at POP Index
<S> <C> <C>
12/31/97 9500 10000
4/30/98 10498 11562
10/31/98 10019 10982
</TABLE>
TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR N/A N/A N/A N/A N/A N/A N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 12/31/97 5.50% 0.19% 5.10% -0.90% 5.20% 4.20% 5.00% 1.62%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
9
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 12
ASAF T. ROWE PRICE
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
The ASAF T. Rowe Price International Equity Fund's Class A shares had an NAV
total return of 5.15% for the fiscal year ended October 31, 1998, compared to
the unmanaged MSCI EAFE Index which returned 9.65%. The shortfall was mainly due
to the weakness of Latin America where the Fund held moderate positions that are
not part of the Index. Stock selection, which was biased toward growth companies
rather than cyclical stocks, was also adverse.
The 12 months ended October 31, 1998 comprised two quite separate parts. In the
first, world stock markets recovered well from the Asian crisis of late 1997,
and by July many of them had reached new highs. From this point on, investor
confidence was again challenged by problems in emerging markets, but this time
the culprit was Russia. The collapse of the ruble, together with Russia's de
facto default on its government bonds, precipitated a severe correction in both
established and less developed global markets. Despite these traumas, investor
confidence did not disappear entirely, and recent months witnessed a good
recovery as the Fund appreciated sharply in October.
Looking forward, Rowe Price-Fleming believes the outlook for Europe, which
accounts for more than two-thirds of the Fund, is positive. In only a few weeks,
the euro currency will arrive and 11 European countries will make a major
commitment to economic integration when they adopt full monetary union. Rowe
Price-Fleming believes this will provide a strong platform for future growth, in
sharp contrast to the economies of the Pacific that are still struggling.
Despite continuing problems in Japan, they believe its stock market is too large
to ignore entirely and is showing signs of stabilizing after a long decline.
<TABLE>
<CAPTION>
Fund's Class A Shares Index: MSCI EAFE
at POP Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 8710 9020
4/30/98 9832 10413
10/31/98 9161 9890
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 5.15% -0.11% 4.69% -1.31% 4.48% 3.48% 4.68% 1.30%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 -2.86% -6.72% -3.27% -7.13% -3.43% -3.43% -3.11% -5.03%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
10
<PAGE> 13
ASAF JANUS
CAPITAL GROWTH FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1998, the ASAF Janus Capital Growth Fund's
Class A shares had an NAV total return of 26.77%, well outpacing the 21.98%
return of the unmanaged S&P 500 Index.
International financial turmoil kept U.S. equity markets highly volatile. After
a short-lived correction in technology stocks late in 1997, stocks generally
moved higher during the first half of 1998 against a backdrop of benign
inflation and declining interest rates. Concerns over corporate earnings led
investors to favor a handful of large-capitalization stocks. However, even
large-cap stocks succumbed to the sharp August correction sparked by the
financial meltdown in Russia. Against a backdrop of back-to-back Federal Reserve
interest rates cuts, the market enjoyed a broad rally in late October which
favored companies with robust earnings potential, regardless of their size.
Janus believes the Fund's performance attests to their bottom-up approach, which
is targeted at identifying growth companies with exceptional earnings
capabilities and disciplined management teams. In particular, they focused on
opportunities in the technology, cable, pharmaceuticals, financial services and
selected retail industries.
Janus remains cautiously optimistic in the outlook for stocks in 1999. While
lower interest rates are expected to provide some support for equities, they
believe the market will likely be in store for more earnings disappointments and
that signs of steady economic growth suggest the market's anticipation of
additional Federal Reserve rate cuts may prove premature. Nonetheless, Janus
continues to invest in companies that it believes can outperform regardless of
what the broader market is doing.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP S&P 500 Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9687 9624
4/30/98 11701 11789
10/31/98 12278 11740
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 26.77% 20.43% 26.40% 20.40% 26.20% 25.20% 26.37% 23.53%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 22.59% 17.69% 22.24% 18.46% 22.09% 22.09% 22.31% 20.97%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
11
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 14
ASAF INVESCO
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1998, the ASAF INVESCO Equity Income
Fund's Class A shares showed an NAV total return of 13.64%, compared to a return
of 21.98% for the unmanaged S&P 500 Index.
The Fund's equities holdings (70.6% of total net assets at October 31) performed
strongly during the period and benefited from the strong upward push in the
equity markets. The Fund's fixed-income investments helped weather the
incredible volatility exhibited by the equity markets throughout the year. The
Fund benefited from an overweight position in the communications and consumer
staples sectors, both of which performed strongly during the period. Other
strong sectors included healthcare and technology, while basic materials and
energy sectors lagged the market. While the Fund's fixed-income holdings
performed well, they did hinder overall performance relative to the S&P 500
Index.
INVESCO expects U.S. economic and corporate profit growth will slow in 1999.
However, it is apparent that the Federal Reserve is becoming increasingly
concerned with the global slowdown and is taking actions to help sustain U.S.
economic growth, as well as spur worldwide economic growth. With this backdrop,
INVESCO will continue to position the Fund towards stocks that should perform
well in a slowing economic environment, and that it believes are exhibiting
healthy balance sheets, positive cash flow, consistent earnings growth, and are
led by superior management teams.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP S&P 500 Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9947 9624
4/30/98 11407 11789
10/31/98 11299 11740
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 13.64% 7.95% 13.30% 7.30% 13.19% 12.19% 13.21% 10.04%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 14.79% 10.17% 14.34% 10.49% 14.34% 14.34% 14.27% 12.70%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
12
<PAGE> 15
ASAF TOTAL RETURN
BOND FUND
- --------------------------------------------------------------------------------
The ASAF Total Return Bond Fund's Class A shares had an NAV total return of
8.78% for the fiscal year ended October 31, 1998. This compares to a return of
9.34% for the unmanaged LB Aggregate Index.
Interest rates fell and bond prices rose during the twelve months, which was a
generally positive environment for the bullishly positioned ASAF Total Return
Bond Fund. During the period, investments in Treasury bonds and mortgage-backed
securities contributed positively to performance, while lower credit quality and
emerging market bond holdings detracted from performance.
PIMCO expects interest rates to move in a relatively narrow band during 1999,
with a good possibility of lower rates and rising bond prices.
<TABLE>
<CAPTION>
Fund's Class A Shares
at POP LB Aggregate Index
<S> <C> <C>
7/28/97 9575 10000
10/31/97 9803 10207
4/30/98 10105 10573
10/31/98 10662 11160
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1998
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS X
-------------------------------------------------------------------------------------------------------
NAV POP NAV CDSC NAV CDSC NAV CDSC
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
1 YEAR 8.78% 4.12% 8.36% 2.36% 8.25% 7.25% 8.35% 5.06%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 8.92% 5.21% 8.18% 4.27% 8.12% 8.12% 8.20% 6.46%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
All performance is historical, assumes reinvestment of all dividends and capital
gains, and is not indicative of future results. Investment return and principal
value will fluctuate, so an investor's shares, when redeemed, may be worth more
or less than when purchased. Total returns were higher due to maintenance of the
Fund's expenses by the Investment Manager (see Financial Highlights).
13
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 16
[This page intentionally left blank.]
14
<PAGE> 17
AMERICAN SKANDIA ADVISOR FUNDS, INC.
SCHEDULES OF INVESTMENTS
OCTOBER 31, 1998
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
ASAF ROBERTSON STEPHENS VALUE + GROWTH FUND
ASAF LORD ABBETT GROWTH AND INCOME FUND
ASAF JANUS OVERSEAS GROWTH FUND
ASAF MARSICO CAPITAL GROWTH FUND
ASAF NEUBERGER&BERMAN MID-CAP GROWTH FUND
ASAF NEUBERGER&BERMAN MID-CAP VALUE FUND
15
<PAGE> 18
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 70.4%
AUSTRIA -- 0.7%
KTM-Motorradholding AG
(Automobile
Manufacturers) 550 $ 37,997
----------
BRAZIL -- 0.2%
Aracruz Celulose SA [ADR]
(Paper & Forest
Products) 1,500 12,562
----------
CANADA -- 3.4%
Cinar Films, Inc. Cl-B*
(Entertainment &
Leisure) 6,850 144,706
Dorel Industries, Inc.
Cl-B*
(Furniture) 3,275 43,929
----------
188,635
----------
DENMARK -- 2.6%
Kobenhavns Lufthavne AS
(Airlines) 760 88,120
Vestas Wind Systems AS*
144A
(Electronic Components
& Equipment) 1,100 53,288
----------
141,408
----------
FINLAND -- 2.4%
KCI Konecranes
International PLC*
(Machinery & Equipment) 325 14,127
Raisio Group PLC
(Farming & Agriculture) 8,925 120,455
----------
134,582
----------
FRANCE -- 5.5%
Altran Technologies SA
(Equipment Services) 1,035 202,460
Dessault Systemes SA
(Computer Services &
Software) 2,625 100,146
----------
302,606
----------
GERMANY -- 12.8%
Douglas Holding AG
(Retail &
Merchandising) 1,350 75,562
Douglas Holding AG New*
(Retail &
Merchandising) 32 1,739
IXOS Software AG*
(Computer Services &
Software) 150 15,669
Marschollek,
Lautenschlaeger und
Partner AG Non-Voting
Pfd.
(Insurance) 350 178,151
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Porsche AG Pfd.
(Automobile
Manufacturers) 75 $ 133,591
Schmalbach Lubeca AG
(Containers &
Packaging) 525 77,664
Schwarz Pharma AG
(Medical Supplies &
Equipment) 1,625 112,835
Sixt AG
(Retail &
Merchandising) 525 107,778
Turbon International AG
(Office Equipment) 500 6,521
----------
709,510
----------
GREECE -- 0.2%
Chipita International SA*
(Food) 375 10,510
----------
HONG KONG -- 2.2%
VTech Holdings Ltd.
(Electronic Components
& Equipment) 32,000 120,013
----------
IRELAND -- 1.6%
Ryanair Holdings PLC
[ADR]*
(Airlines) 3,075 90,328
----------
ITALY -- 3.0%
Bulgari SPA
(Retail &
Merchandising) 15,300 83,869
Gruppo Editoriale
L'Espresso SPA
(Printing & Publishing) 3,075 27,405
Industrie Natuzzi SPA
[ADR]
(Furniture) 3,075 55,927
----------
167,201
----------
JAPAN -- 2.7%
Doutor Coffee Co. Ltd.
(Restaurants) 2,000 63,505
Fuji Soft ABC, Inc.
(Computer Services &
Software) 1,000 37,760
Nippon System Development
(Computer Services &
Software) 2,000 50,975
----------
152,240
----------
MEXICO -- 0.4%
Grupo Posadas SA Cl-A*
(Hotels & Motels) 52,775 19,811
----------
</TABLE>
16
<PAGE> 19
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
NETHERLANDS -- 6.0%
Beter Bed Holding NV
(Furniture) 1,400 $ 37,480
Brunel International NV
144A
(Business Services) 1,750 49,473
Hunter Douglas NV
(Consumer Products &
Services) 2,150 77,128
IHC Caland NV
(Machinery & Equipment) 1,750 79,176
Nutreco Holding NV
(Farming & Agriculture) 2,700 91,798
----------
335,055
----------
NORWAY -- 1.3%
Narvesen ASA
(Retail &
Merchandising) 250 5,426
Tomra Systems ASA
(Machinery & Equipment) 2,425 68,092
----------
73,518
----------
SPAIN -- 4.2%
Tele Pizza SA*
(Restaurants) 28,375 231,237
----------
SWEDEN -- 3.8%
Haldex AB
(Automotive Parts) 2,370 26,681
NetCom Systems AB Cl-B*
(Telecommunications) 3,675 137,750
Ortivus AB Cl-B*
(Medical Supplies &
Equipment) 2,200 14,916
Semcon AB
(Business Services) 3,950 34,109
----------
213,456
----------
UNITED KINGDOM -- 17.4%
British-Borneo Petroleum
Syndicate PLC
(Oil & Gas) 12,825 48,218
BTG PLC
(Business Services) 5,100 28,399
Capital Radio PLC
(Broadcasting) 6,925 57,987
Eidos PLC [ADR]*
(Computer Services &
Software) 2,125 29,484
Energis PLC*
(Telecommunications) 8,125 110,217
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Flextech PLC*
(Broadcasting) 9,325 $ 87,375
ICON PLC [ADR]*
(Pharmaceuticals) 2,000 56,000
JBA Holdings PLC
(Computer Services &
Software) 11,225 52,635
Misys PLC
(Computer Services &
Software) 10,875 76,310
PizzaExpress PLC
(Restaurants) 12,325 156,870
Psion PLC
(Computer Hardware) 14,975 125,143
Select Appointments
Holdings PLC*
(Business Services) 8,800 76,635
Wetherspoon, (J.D.) PLC
(Hotels & Motels) 17,950 60,122
----------
965,395
----------
TOTAL FOREIGN STOCK
(Cost $3,971,652) 3,906,064
----------
U.S. STOCK -- 1.2%
TELECOMMUNICATIONS
Global TeleSystems Group,
Inc.*
(Cost $69,022) 1,725 69,108
----------
TOTAL INVESTMENTS -- 71.6%
(Cost $4,040,674) 3,975,172
OTHER ASSETS LESS
LIABILITIES -- 28.4% 1,573,705
----------
NET ASSETS -- 100.0% $5,548,877
==========
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1998:
<TABLE>
<CAPTION>
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS UNREALIZED
MONTH TYPE DELIVER FOR AT VALUE DEPRECIATION
- -----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nov-98 Sell FIM 34,053 $6,753 $6,760 $7
====== ====== ==
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
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 year, these securities amounted
to 1.9% of net assets.
See Notes to Financial Statements.
17
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 20
ASAF FOUNDERS
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 70.9%
ADVERTISING -- 1.7%
CKS Group, Inc.* 3,875 $ 73,625
Healthworld Corp.* 3,450 51,750
True North
Communications, Inc. 2,500 59,062
-----------
184,437
-----------
AEROSPACE -- 0.8%
REMEC, Inc.* 8,250 86,625
-----------
BUSINESS SERVICES -- 2.9%
Lason, Inc.* 900 49,275
Metzler Group, Inc.* 2,025 85,050
PAREXEL International
Corp.* 2,125 46,883
Pegasus Systems, Inc.* 875 15,203
Personnel Group of
America, Inc.* 2,350 36,425
ProBusiness Services,
Inc.* 1,050 38,391
Renaissance Worldwide,
Inc.* 3,500 33,031
-----------
304,258
-----------
CLOTHING & APPAREL -- 2.2%
Burlington Coat Factory
Warehouse Corp. 3,450 51,750
The Mens Warehouse,
Inc.* 1,425 34,556
The Warnaco Group, Inc.
Cl-A 3,025 77,327
The Wet Seal, Inc.
Cl-A* 3,200 67,600
-----------
231,233
-----------
COMPUTER HARDWARE -- 1.1%
Insight Enterprises,
Inc.* 4,125 119,625
-----------
COMPUTER SERVICES & SOFTWARE -- 14.4%
Avant! Corp.* 3,275 55,880
BindView Development
Corp.* 1,500 27,000
Brooktrout
Technologies, Inc.* 1,300 19,094
CDW Computer Centers,
Inc.* 1,275 95,545
Check Point Software
Technologies Ltd.* 2,075 47,206
CheckFree Holdings
Corp.* 3,775 59,338
Documentum, Inc.* 2,275 77,350
Electronic Arts, Inc.* 200 8,225
HNC Software, Inc.* 1,475 49,597
Macromedia, Inc.* 3,975 79,500
Mastech Corp.* 3,750 88,125
Microchip Technology,
Inc.* 1,700 46,006
Micromuse, Inc.* 5,025 85,739
MMC Networks, Inc.* 1,700 17,850
Pinnacle Systems, Inc.* 4,225 143,650
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Sapient Corp.* 1,975 $ 88,998
SIPEX Corp.* 2,550 70,762
Software AG
Systems, Inc.* 7,950 119,250
Sykes Enterprises,
Inc.* 4,000 78,500
Transaction Systems
Architects, Inc.* 1,675 60,457
USWeb Corp.* 3,875 55,703
VERITAS Software Corp.* 2,250 112,781
Wind River Systems,
Inc.* 1,025 44,908
-----------
1,531,464
-----------
CONSTRUCTION -- 0.7%
Dycom Industries, Inc.* 2,250 78,891
-----------
CONSUMER PRODUCTS & SERVICES -- 3.4%
Action Performance
Companies, Inc.* 6,125 182,984
Helen of Troy Ltd.* 7,975 118,628
Pre-Paid Legal
Services, Inc.* 1,900 45,481
Windmere-Durable
Holdings, Inc.* 1,850 14,222
-----------
361,315
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 4.8%
Applied Micro Circuits
Corp.* 2,625 63,000
Brooks Automation,
Inc.* 4,500 55,125
Concord EFS, Inc.* 3,425 97,612
Sanmina Corp.* 1,725 70,725
Sawtek, Inc.* 5,825 117,592
Uniphase Corp.* 1,450 71,775
Veeco Instruments,
Inc.* 1,125 33,398
-----------
509,227
-----------
ENTERTAINMENT & LEISURE -- 3.5%
Family Golf Centers,
Inc.* 3,200 67,400
Global Vacation Group,
Inc.* 4,250 29,219
Loews Cineplex
Entertainment Corp.* 8,200 86,100
Premier Parks, Inc.* 4,275 94,852
Silverleaf Resorts,
Inc.* 3,500 41,344
Travel Services
International, Inc.* 2,500 50,625
-----------
369,540
-----------
ENVIRONMENTAL SERVICES -- 1.3%
Allied Waste
Industries, Inc.* 2,433 52,614
Eastern Environmental
Services, Inc.* 1,000 27,750
KTI, Inc.* 3,000 63,000
-----------
143,364
-----------
</TABLE>
18
<PAGE> 21
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
EQUIPMENT SERVICES -- 3.6%
Gemstar International
Group Ltd.* 5,000 $ 273,125
Rental Service Corp.* 2,725 60,631
United Rentals, Inc.* 1,775 47,703
-----------
381,459
-----------
FOOD -- 1.4%
American Italian Pasta
Co. Cl-A* 1,100 25,300
U.S. Foodservice, Inc.* 1,450 68,875
Whole Foods Market,
Inc.* 1,450 58,091
-----------
152,266
-----------
HEALTHCARE SERVICES -- 5.8%
Access Health, Inc.* 2,100 75,337
Capital Senior Living
Corp.* 8,025 94,294
Cerner Corp.* 3,400 76,075
Concentra Managed
Care, Inc.* 6,675 68,419
Envoy Corp.* 800 23,600
IDEXX Laboratories,
Inc.* 775 17,680
Medical Manager Corp.* 1,575 39,178
NCS Healthcare,
Inc. Cl-A* 500 8,813
Orthodontic Centers of
America, Inc.* 6,000 113,625
Sunrise Assisted
Living, Inc.* 2,350 101,197
-----------
618,218
-----------
INSURANCE -- 1.2%
Annuity and Life Re
Holdings Ltd.* 4,550 106,356
HCC Insurance Holdings,
Inc. 1,300 23,319
-----------
129,675
-----------
MACHINERY & EQUIPMENT -- 0.6%
Advanced Energy
Industries, Inc.* 1,900 24,938
National Equipment
Services, Inc.* 4,700 36,719
-----------
61,657
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 0.5%
Perclose, Inc.* 1,100 26,263
Trex Medical Corp.* 2,175 26,644
-----------
52,907
-----------
METALS & MINING -- 0.1%
IMCO Recycling, Inc. 400 5,525
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT -- 1.0%
Global Imaging Systems,
Inc.* 8,875 $ 112,047
-----------
OIL & GAS -- 0.2%
Cal Dive International,
Inc.* 950 20,306
-----------
PERSONAL SERVICES -- 1.0%
Sylvan Learning
Systems, Inc.* 3,500 108,063
-----------
PHARMACEUTICALS -- 8.6%
Andrx Corp.* 2,675 104,325
Cardinal Health, Inc. 166 15,697
Jones Medical
Industries, Inc. 3,225 104,208
Kendle International,
Inc.* 2,050 53,813
King Pharmaceuticals,
Inc.* 14,225 221,377
Medicis Pharmaceutical
Corp. Cl-A* 3,600 180,450
Watson Pharmaceuticals,
Inc.* 4,375 243,359
-----------
923,229
-----------
PRINTING & PUBLISHING -- 0.7%
American Bank Note
Holographics, Inc.* 7,900 74,556
-----------
REAL ESTATE -- 0.5%
Fairfield Communities,
Inc.* 5,500 53,969
-----------
RESTAURANTS -- 1.2%
CKE Restaurants, Inc. 4,900 128,931
-----------
RETAIL & MERCHANDISING -- 4.6%
American Eagle
Outfitters, Inc.* 2,750 111,375
Cash America
International, Inc. 2,250 28,125
Elder-Beerman Stores
Corp.* 2,150 25,128
Linens 'n Things, Inc.* 2,200 68,063
Saks, Inc.* 1,675 38,106
The Sports Authority,
Inc.* 8,450 64,431
Trans World
Entertainment Corp.* 7,650 157,781
-----------
493,009
-----------
SEMICONDUCTORS -- 0.8%
Amkor Technology, Inc.* 6,150 29,981
Vitesse Semiconductor,
Inc.* 1,575 50,794
-----------
80,775
-----------
</TABLE>
19
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 22
ASAF FOUNDERS
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 2.3%
Allegiance Telecom,
Inc.* 6,150 $ 70,341
Digital Microwave
Corp.* 11,750 51,406
e.spire Communications,
Inc.* 1,700 20,400
Viatel, Inc.* 6,975 93,291
Westell Technologies,
Inc. Cl-A* 1,475 5,531
-----------
240,969
-----------
TOTAL COMMON STOCK
(Cost $7,508,945) 7,557,540
-----------
PAR
(000)
-------
COMMERCIAL PAPER -- 26.6%
Albertson, Inc.
5.63%, 11/02/98 $ 432 431,932
American Express Credit
Corp.
5.18%, 11/02/98 509 508,927
Du Pont, (E.I.) de
Nemours & Co.
5.25%, 11/03/98 400 399,883
Eastman Kodak Co.
5.50%, 11/03/98 487 486,851
Ford Motor Credit Co.
5.23%, 11/04/98 511 510,777
General Electric
Capital Corp.
5.45%, 11/05/98 500 499,697
-----------
(Cost $2,838,067) 2,838,067
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.0%
Temporary Investment
Cash Fund 505 $ 505
Temporary Investment
Fund 505 505
-----------
(Cost $1,010) 1,010
-----------
TOTAL INVESTMENTS -- 97.5%
(Cost $10,348,022) 10,396,617
OTHER ASSETS LESS
LIABILITIES -- 2.5% 264,483
-----------
NET ASSETS -- 100.0% $10,661,100
===========
</TABLE>
- -------------------------------------------------------
* Non-income producing securities.
See Notes to Financial Statements.
20
<PAGE> 23
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 90.5%
AIRLINES -- 1.7%
Midwest Express
Holdings, Inc.* 21,450 $ 678,356
-----------
AUTOMOTIVE PARTS -- 2.0%
Myers Industries, Inc. 17,200 412,800
OEA, Inc. 21,500 240,531
TBC Corp.* 24,600 170,662
-----------
823,993
-----------
BUILDING MATERIALS --9.3%
Cameron Ashley Building
Products, Inc.* 28,600 314,600
Giant Cement Holding,
Inc.* 8,600 179,525
Gibraltar Steel Corp.* 17,200 333,250
Holophane Corp.* 17,200 366,575
Juno Lighting, Inc. 20,000 475,000
Lone Star Technologies,
Inc.* 22,900 243,312
Modine Manufacturing
Co. 17,200 563,300
Republic Group, Inc. 25,800 382,162
Skyline Corp. 10,000 310,625
Synthetic Industries,
Inc.* 25,800 364,425
Thomas Industries, Inc. 15,750 285,469
-----------
3,818,243
-----------
BUSINESS SERVICES -- 1.0%
Grey Advertising, Inc. 1,110 394,050
-----------
CHEMICALS -- 2.6%
Furon Co. 32,900 522,287
Schulman, (A.), Inc. 17,200 341,850
TETRA Technologies,
Inc.* 17,900 215,919
-----------
1,080,056
-----------
CLOTHING & APPAREL --1.1%
Dan River, Inc. Cl-A* 22,900 198,944
Unitog Co. 14,300 257,400
-----------
456,344
-----------
COMPUTER HARDWARE -- 1.0%
Analogic Corp. 10,700 409,275
-----------
COMPUTER SERVICES & SOFTWARE -- 0.7%
Analysts International
Corp. 17,150 301,197
-----------
CONSUMER PRODUCTS & SERVICES -- 0.9%
American Safety Razor
Co.* 21,500 240,531
Culp, Inc. 20,000 145,000
-----------
385,531
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
CONTAINERS & PACKAGING -- 4.6%
Aptargroup, Inc. 17,200 $ 460,100
First Brands Corp. 16,100 607,775
Ivex Packaging Corp.* 25,800 456,337
Shorewood Packaging
Corp.* 21,500 344,000
-----------
1,868,212
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 7.8%
Electro Rental Corp.* 42,900 418,275
Franklin Electric Co.,
Inc. 5,700 342,356
Landauer, Inc. 10,700 282,881
Littelfuse, Inc.* 21,500 473,000
Methode Electronics,
Inc. Cl-A 35,800 550,425
Nichols Research Corp.* 17,200 350,450
Optical Coating
Laboratory, Inc. 20,000 332,500
Pioneer-Standard
Electronics, Inc. 17,100 152,831
Scotsman Industries,
Inc. 14,300 292,256
-----------
3,194,974
-----------
ENVIRONMENTAL SERVICES -- 1.3%
Newpark Resources,
Inc.* 46,500 438,844
Waterlink, Inc.* 17,900 86,144
-----------
524,988
-----------
EQUIPMENT SERVICES -- 3.0%
Cort Business Services
Corp.* 20,000 392,500
Rival Co. 11,400 79,087
Unifirst Corp. 17,200 478,375
VWR Scientific
Products, Inc.* 11,500 279,594
-----------
1,229,556
-----------
FINANCIAL -- BANK & TRUST -- 3.2%
Community First
Bankshares, Inc. 20,000 397,500
First Republic Bank* 15,700 388,575
Silicon Valley
Bancshares* 20,000 410,000
Sirrom Capital Corp. 21,000 115,500
-----------
1,311,575
-----------
FINANCIAL SERVICES -- 3.5%
Allied Capital Corp. 20,060 376,125
AMRESCO, Inc.* 19,700 136,669
First Financial Fund,
Inc.** 22,900 322,031
McGrath RentCorp 17,200 359,050
Medallion Financial
Corp. 14,300 253,825
-----------
1,447,700
-----------
</TABLE>
21
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 24
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
INSURANCE -- 5.9%
FBL Financial Group,
Inc. Cl-A 18,600 $ 473,137
Harleysville Group,
Inc. 5,900 126,112
Markel Corp.* 2,600 386,425
Poe & Brown, Inc. 21,500 831,781
Presidential Life Corp. 20,000 362,500
PXRE Corp. 10,000 253,750
-----------
2,433,705
-----------
LUMBER & WOOD PRODUCTS -- 0.7%
Deltic Timber Corp. 11,500 280,312
-----------
MACHINERY & EQUIPMENT -- 4.3%
Alamo Group, Inc. 9,200 126,500
Carbo Ceramics, Inc. 15,300 418,838
Smith, (A.O.) Corp. 21,450 438,384
TransTechnology Corp. 20,000 421,250
Woodward Governor Co. 15,600 343,200
-----------
1,748,172
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 1.9%
Lunar Corp.* 19,700 206,850
Owens & Minor, Inc. 35,800 568,325
-----------
775,175
-----------
METALS & MINING -- 3.0%
Cambior, Inc. 12,900 64,500
Dayton Mining Corp.* 20,000 10,000
Golden Star Resources
Ltd.* 17,200 27,950
Layne Christensen Co.* 17,200 169,850
Material Sciences
Corp.* 21,500 216,344
Penn Virginia Corp. 18,600 402,225
Prime Resources Group,
Inc. 39,300 338,963
-----------
1,229,832
-----------
OFFICE EQUIPMENT -- 3.6%
Aaron Rents, Inc. Cl-A 7,200 103,500
Aaron Rents, Inc. Cl-B 19,700 290,575
CompX International,
Inc.* 28,600 550,550
IDEX Corp. 20,000 517,500
-----------
1,462,125
-----------
OIL & GAS -- 3.2%
Chieftain
International, Inc.* 28,600 561,275
Cross Timbers Oil Co. 22,900 329,188
Devon Energy Corp. 7,200 243,900
Rutherford-Moran Oil
Corp.* 21,500 161,250
-----------
1,295,613
-----------
PAPER & FOREST PRODUCTS -- 1.4%
CSS Industries, Inc.* 9,000 241,875
Wausau-Mosinee Paper
Corp. 20,080 350,145
-----------
592,020
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
PERSONAL SERVICES -- 1.6%
Matthews International
Corp. Cl-A 24,300 $ 671,288
-----------
PHARMACEUTICALS -- 1.0%
Coulter Pharmaceutical,
Inc.* 14,300 403,975
-----------
REAL ESTATE -- 5.2%
Apartment Investment &
Management Co. Cl-A
[REIT] 7,900 276,006
Glenborough Realty
Trust, Inc. [REIT] 14,300 306,556
Innkeepers USA Trust
[REIT] 21,500 247,250
Meridian Industrial
Trust, Inc. [REIT] 21,500 473,000
National Health
Investors, Inc.
[REIT] 7,200 202,950
Post Properties, Inc.
[REIT] 3,400 131,538
Sun Communities, Inc.
[REIT] 14,300 478,156
-----------
2,115,456
-----------
RESTAURANTS -- 2.8%
Consolidated Products,
Inc.* 25,750 476,375
Ruby Tuesday, Inc. 40,100 676,688
-----------
1,153,063
-----------
RETAIL & MERCHANDISING -- 5.3%
Bon-Ton Stores, Inc.* 28,600 187,688
Casey's General Stores,
Inc. 28,600 400,400
CompuCom Systems, Inc.* 64,400 313,950
Fred's, Inc. 25,700 335,706
Hancock Fabrics, Inc. 28,600 248,463
Jo-Ann Stores, Inc.
C1-B* 18,600 288,300
Saks, Inc.* 1,461 33,238
Stein Mart, Inc.* 46,500 366,188
-----------
2,173,933
-----------
TELECOMMUNICATIONS --2.3%
Aliant Communications,
Inc. 25,800 728,044
Mosaix, Inc.* 35,800 221,513
-----------
949,557
-----------
TRANSPORTATION -- 1.2%
Landstar Systems, Inc.* 14,300 507,650
-----------
</TABLE>
22
<PAGE> 25
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
UTILITIES -- 3.4%
Black Hills Corp. 14,300 $ 369,119
Cleco Corp. 14,300 483,519
United Water Resources,
Inc. 28,600 554,125
-----------
1,406,763
-----------
TOTAL COMMON STOCK
(Cost $42,632,679) 37,122,689
-----------
PREFERRED STOCK -- 0.4%
OIL & GAS
Cross Timbers Oil Co.
$1.5625 Cl-A [CVT]
(Cost $185,482) 4,800 163,800
-----------
PAR
(000)
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.5%
Federal Home Loan Bank
5.44%, 11/06/98
(Cost $194,853) $ 195 194,850
-----------
U.S. TREASURY OBLIGATIONS -- 2.7%
U.S. Treasury Bills
4.83%, 11/19/98 52 51,874
4.80%, 12/17/98 90 89,439
4.60%, 03/18/99 1,000 982,239
-----------
(Cost $1,123,816) 1,123,552
-----------
COMMERCIAL PAPER -- 6.3%
Aluminum Co. of America
5.60%, 11/02/98 639 638,900
Du Pont, (E.I.) de
Nemours & Co.
5.05%, 11/18/98 490 488,831
Gannett Co., Inc.+
5.25%, 11/13/98 290 289,493
Koch Industries, Inc.+
5.00%, 11/02/98 1,152 1,151,840
-----------
(Cost $2,569,064) 2,569,064
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.0%
Temporary Investment
Cash Fund
(Cost $2,309) 2,309 $ 2,309
-----------
TOTAL INVESTMENTS -- 100.4%
(Cost $46,708,203) 41,176,264
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (0.4%) (171,410)
-----------
NET ASSETS -- 100.0% $41,004,854
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
** Closed-end fund.
+ Security is restricted as to resale and may not be resold except to qualified
institutional buyers. At the end of the year, these securities amounted to
3.5% of net assets.
See Notes to Financial Statements.
23
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 26
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 54.1%
ADVERTISING -- 0.7%
Outdoor Systems, Inc.* 6,800 $ 150,025
-----------
BEVERAGES -- 0.8%
Coca-Cola Co. 2,600 175,825
-----------
COMPUTER HARDWARE --2.4%
Dell Computer Corp.* 3,200 210,000
International Business
Machines Corp. 2,200 326,562
-----------
536,562
-----------
COMPUTER SERVICES & SOFTWARE -- 5.8%
America Online, Inc.* 3,400 432,012
Cisco Systems, Inc.* 3,600 226,800
Compuware Corp.* 1,200 65,025
Microsoft Corp.* 5,100 539,962
-----------
1,263,799
-----------
CONGLOMERATES -- 2.2%
Philip Morris Companies,
Inc. 5,900 301,637
Tyco International Ltd. 2,900 179,619
-----------
481,256
-----------
CONSUMER PRODUCTS & SERVICES -- 1.7%
Gillette Co. 2,500 112,344
Procter & Gamble Co. 3,000 266,625
-----------
378,969
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 2.7%
General Electric Co. 6,800 595,000
-----------
ENTERTAINMENT & LEISURE -- 2.7%
Time Warner, Inc. 4,000 371,250
Viacom, Inc. Cl-B* 3,800 227,525
-----------
598,775
-----------
ENVIRONMENTAL SERVICES -- 1.8%
Republic Services, Inc.
Cl-A* 5,700 124,687
Waste Management, Inc. 5,785 261,048
-----------
385,735
-----------
FINANCIAL -- BANK & TRUST -- 0.3%
Norwest Corp.* 1,900 70,656
-----------
FINANCIAL SERVICES -- 5.8%
American Express Co. 1,000 88,375
CIT Group, Inc. Cl-A 2,900 79,206
Fannie Mae 7,000 495,687
SunAmerica, Inc. 8,550 602,775
-----------
1,266,043
-----------
INSURANCE -- 2.4%
Allstate Corp. 2,800 120,575
American International
Group, Inc. 4,850 413,462
-----------
534,037
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
MEDICAL SUPPLIES & EQUIPMENT -- 4.6%
Guidant Corp. 1,100 $ 84,150
Johnson & Johnson 6,300 513,450
Medtronic, Inc. 6,500 422,500
-----------
1,020,100
-----------
OIL & GAS -- 0.8%
Chevron Corp. 1,100 89,650
Texaco, Inc. 1,500 88,969
-----------
178,619
-----------
PHARMACEUTICALS -- 10.8%
Bristol-Meyers Squibb
Co. 4,600 508,588
Cardinal Health, Inc. 4,300 406,619
Merck & Co., Inc. 2,700 365,175
Pfizer, Inc. 4,600 493,638
Schering-Plough Corp. 2,800 288,050
Warner-Lambert Co. 3,900 305,663
-----------
2,367,733
-----------
PRINTING & PUBLISHING -- 0.9%
McGraw-Hill Co., Inc. 2,200 197,863
-----------
RETAIL & MERCHANDISING -- 2.1%
Costco Companies, Inc.* 2,500 141,875
Home Depot, Inc. 1,800 78,300
Wal-Mart Stores, Inc. 3,600 248,400
-----------
468,575
-----------
TELECOMMUNICATIONS -- 5.6%
MCI WorldCom, Inc.* 8,800 486,200
SBC Communications, Inc. 3,500 162,094
Tele-Communications,
Inc. Cl-A* 13,813 581,873
-----------
1,230,167
-----------
TOTAL COMMON STOCK
(Cost $10,732,623) 11,899,739
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000)
-----
<S> <C> <C>
CORPORATE OBLIGATIONS -- 0.9%
FINANCIAL -- BANK & TRUST
BankAmerica Corp. Sr.
Notes
6.125%, 07/15/04
(Cost $199,777) $200 202,750
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.4%
Case Equipment Loan
Trust Series 1998-B
Cl-A4
5.92%, 10/15/05 200 203,819
CIT RV Trust Series
1998-A Cl-A4
6.09%, 02/15/12 100 102,589
-----------
(Cost $300,004) 306,408
-----------
</TABLE>
24
<PAGE> 27
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 14.9%
Federal Home Loan Bank
5.40%, 11/02/98 $2,300 $ 2,299,655
5.705%, 03/19/03 500 516,950
-----------
2,816,605
-----------
Government National
Mortgage Assoc.
6.50%, 05/15/28 [TBA] 251 253,841
6.00%, 08/15/28 198 196,330
-----------
450,171
-----------
(Cost $3,246,609) 3,266,776
-----------
U.S. TREASURY OBLIGATIONS -- 26.4%
U.S. Treasury Bonds
6.125%, 11/15/27 50 56,400
-----------
U.S. Treasury Notes
6.625%, 07/31/01 500 529,619
6.00%, 07/31/02 100 105,531
5.875%, 09/30/02 200 210,627
5.75%, 11/30/02 500 525,112
5.75%, 08/15/03 2,750 2,915,729
6.625%, 05/15/07 1,300 1,476,216
-----------
5,762,834
-----------
(Cost $5,581,994) 5,819,234
-----------
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
SHORT-TERM INVESTMENTS -- 0.0%
Temporary Investment
Cash Fund 955 $ 955
Temporary Investment
Fund 954 954
-----------
(Cost $1,909) 1,909
-----------
TOTAL INVESTMENTS -- 97.7%
(Cost $20,062,916) 21,496,816
OTHER ASSETS LESS
LIABILITIES -- 2.3% 500,125
-----------
NET ASSETS -- 100.0% $21,996,941
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
25
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 28
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
CORPORATE OBLIGATIONS -- 89.5%
ADVERTISING -- 1.0%
Larmar Advertising Co.
Sr. Sub. Notes
8.625%, 09/15/07 $ 100 $ 102,750
Outdoor Systems, Inc.
Sr. Sub. Notes
8.875%, 06/15/07 350 366,625
-----------
469,375
-----------
AIRLINES -- 0.2%
Aviation Sales Co.
Co. Guarantee Sr. Sub.
Notes
8.125%, 02/15/08 100 91,500
-----------
AUTOMOTIVE PARTS -- 2.5%
Accuride Corp. Sr. Sub.
Notes Cl-B
9.25%, 02/01/08 300 274,500
HDA Parts System, Inc.
Sr. Sub. Notes 144A
12.00%, 08/01/05 150 120,000
Lear Corp. Sub. Notes
9.50%, 07/15/06 50 51,875
Lear Seating Corp. Sub.
Notes
8.25%, 02/01/02 400 402,000
Oxford Automotive, Inc.
Co. Guarantee Sr. Sub.
Notes
10.125%, 06/15/07 300 273,000
-----------
1,121,375
-----------
BROADCASTING -- 7.1%
Acme Television Co.
Co. Guarantee Notes
Cl-B [STEP]
7.066%, 09/30/04 150 114,750
Big City Radio, Inc. Co.
Guarantee Sr. Disc.
Notes [STEP]
12.507%, 03/15/05 300 181,500
Capstar Broadcasting
Corp. Sr. Sub. Notes
9.25%, 07/01/07 100 99,500
Chancellor Media Corp.
Co. Guarantee Sr. Sub.
Notes Cl-B
10.50%, 01/15/07 50 53,000
Chancellor Media Corp.
LA Co. Guarantee Sr.
Sub. Notes Cl-B
8.75%, 06/15/07 50 48,750
Chancellor Media Corp.
LA Sr. Sub. Notes Cl-B
8.125%, 12/15/07 525 501,375
Chancellor Media Corp.
Sr. Sub. Notes 144A
9.00%, 10/01/08 325 325,000
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Cumulus Media, Inc. Co.
Guarantee Sub. Notes
10.375%, 07/01/08 $ 175 $ 179,375
Diva Systems Corp. Units
[STEP] 144A
11.851%, 03/01/08 100 32,500
Echostar Satellite
Broadcasting Co. Sr.
Disc. Notes [STEP]
12.195%, 03/15/04 400 350,000
Fox/Liberty Networks LLC
Sr. Disc. Notes [STEP]
9.709%, 08/15/07 525 341,250
Fox/Liberty Networks LLC
Sr. Notes
8.875%, 08/15/07 250 243,125
Outdoor Systems, Inc.
Co. Guarantee Notes
9.375%, 10/15/06 75 79,875
SFX Broadcasting, Inc.
Sr. Sub. Notes Cl-B
10.75%, 05/15/06 200 220,000
Sinclair Broadcasting
Group, Inc. Co.
Guarantee Notes
10.00%, 09/30/05 175 177,625
Sinclair Broadcasting
Group, Inc. Co.
Guarantee Sr. Sub.
Notes
9.00%, 07/15/07 75 72,750
Sinclair Broadcasting
Group, Inc. Sr. Sub.
Notes
8.75%, 12/15/07 225 216,000
-----------
3,236,375
-----------
BUILDING MATERIALS -- 0.2%
American Builders &
Contractors Supply
Co., Inc. Notes Cl-B
10.625%, 05/15/07 50 45,750
Falcon Building
Products, Inc. Co.
Guarantee Notes Cl-B
[STEP]
10.09%, 06/15/07 75 37,875
-----------
83,625
-----------
BUSINESS SERVICES -- 1.2%
Dialog Corp. PLC Sr.
Sub. Notes Cl-A
11.00%, 11/15/07 225 231,750
U.S. Office Products Co.
Sr. Sub. Notes 144A
9.75%, 06/15/08 375 296,250
-----------
528,000
-----------
</TABLE>
26
<PAGE> 29
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
CABLE TELEVISION -- 9.5%
Charter Communications
Southeast Holdings
Capital Corp. Disc.
Notes Cl-B [STEP]
11.224%, 03/15/07 $ 125 $ 106,875
Comcast Corp. Sr. Sub.
Debs.
9.375%, 05/15/05 100 106,500
CSC Holdings, Inc. Sr.
Notes
7.875%, 12/15/07 50 50,250
CSC Holdings, Inc. Sr.
Sub. Debs.
9.875%, 02/15/13 50 53,750
CSC Holdings, Inc. Sr.
Sub. Notes
9.25%, 11/01/05 350 371,000
Diamond Holdings PLC Co.
Guarantee Notes
9.125%, 02/01/08 200 183,000
Echostar DBS Corp. Co.
Guarantee Sr. Notes
12.50%, 07/01/02 225 230,625
Lenfest Communications,
Inc. Sr. Notes
8.375%, 11/01/05 150 158,625
NTL, Inc. Sr. Notes 144A
11.50%, 10/01/08 325 336,375
NTL, Inc. Sr. Notes Cl-B
[STEP]
9.743%, 02/01/06 125 93,125
NTL, Inc. Sr. Notes
[STEP] 144A
10.64%, 04/01/08 1,375 756,250
12.375%, 10/01/08 400 224,040
Pegasus Communications
Corp. Sr. Notes Cl-B
9.625%, 10/15/05 425 397,375
Rogers Cablesystems of
America, Inc. Sr.
Notes Cl-B
10.00%, 03/15/05 250 272,500
Telewest Communications
PLC Debs. [STEP]
10.802%, 10/01/07 800 635,000
Telewest Communications
PLC Sr. Notes 144A
11.25%, 11/01/08 200 210,000
United International
Holdings, Inc. Sr.
Disc. Notes Cl-B
[STEP]
10.803%, 02/15/08 375 170,625
-----------
4,355,915
-----------
CAPITAL GOODS -- 0.2%
Buckeye Cellulos Corp.
Sr. Sub. Notes
9.25%, 09/15/08 100 100,750
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
CHEMICALS -- 2.0%
ISP Holdings, Inc. Sr.
Notes Cl-B
9.00%, 10/15/03 $ 300 $ 310,500
Polymer Group, Inc. Co.
Guarantee Notes Cl-B
9.00%, 07/01/07 200 187,000
Polymer Group, Inc. Co.
Guarantee Sub. Notes
Cl-B
8.75%, 03/01/08 450 418,500
-----------
916,000
-----------
CLOTHING & APPAREL -- 1.9%
Boyds Collection Ltd.
Sr. Sub. Notes 144A
9.00%, 05/15/08 150 142,500
GFSI, Inc. Sr. Sub.
Notes Cl-B
9.625%, 03/01/07 250 226,250
Pillowtex Corp. Co.
Guarantee Notes Cl-B
9.00%, 12/15/07 325 326,625
Pillowtex Corp. Sr. Sub.
Notes
10.00%, 11/15/06 150 156,750
-----------
852,125
-----------
COMPUTER SERVICES & SOFTWARE -- 0.3%
Alvey Systems, Inc. Sr.
Sub. Notes
11.375%, 01/31/03 50 50,250
American Business
Information, Inc. Sr.
Sub. Notes 144A
9.50%, 06/15/08 100 81,500
-----------
131,750
-----------
CONGLOMERATES -- 1.6%
Eagle-Picher Industries,
Inc. Co. Guarantee
Sub. Notes
9.375%, 03/01/08 350 309,750
Hermes Europe Railtel BV
Sr. Notes
11.50%, 08/15/07 400 410,000
-----------
719,750
-----------
CONSTRUCTION -- 0.3%
American Architectural
Co. Co. Guarantee Sub.
Notes
11.75%, 12/01/07 50 42,750
Building Materials Corp.
Sr. Notes Cl-B
8.00%, 10/15/07 100 95,500
-----------
138,250
-----------
</TABLE>
27
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 30
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
CONSUMER PRODUCTS & SERVICES -- 6.4%
Albecca, Inc. Sr. Sub.
Notes 144A
10.75%, 08/15/08 $ 350 $ 327,250
Amscan Holdings, Inc.
Sr. Sub. Notes
9.875%, 12/15/07 175 144,375
Chattem, Inc. Co.
Guarantee Sub. Notes
Cl-B
8.875%, 04/01/08 400 388,000
Collins & Aikman Floor
Coverings Corp. Sr.
Sub. Notes
10.00%, 01/15/07 150 152,250
Collins & Aikman
Products Corp. Co.
Guarantee Sr. Sub.
Notes
11.50%, 04/15/06 500 501,250
Diamond Brands
Operating, Inc. Sr.
Disc. Debs. [STEP]
12.83%, 04/15/09 50 21,250
Diamond Brands
Operating, Inc. Sr.
Sub. Notes
10.125%, 04/15/08 100 92,500
Glenoit Corp. Co.
Guarantee Sub. Notes
11.00%, 04/15/07 175 164,500
NBTY, Inc. Sr. Sub.
Notes Cl-B
8.625%, 09/15/07 50 48,250
Playtex Family Products
Corp. Sr. Sub. Notes
9.00%, 12/15/03 450 459,000
Playtex Products, Inc.
Co. Guarantee Sub.
Notes Cl-B
8.875%, 07/15/04 50 51,250
Revlon Consumer Products
Corp. Sr. Sub. Notes
8.625%, 02/01/08 550 506,000
Simmons Co. Sr. Sub.
Notes
10.75%, 04/15/06 50 52,250
-----------
2,908,125
-----------
CONTAINERS & PACKAGING -- 1.0%
Ball Corp. Sr. Sub.
Notes 144A
8.25%, 08/01/08 300 312,750
Tekni-Plex, Inc. Co.
Guarantee Sub. Notes
Cl-B
9.25%, 03/01/08 150 147,750
-----------
460,500
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
ELECTRONIC COMPONENTS & EQUIPMENT -- 1.8%
Amphenol Corp. Sr. Sub.
Notes
9.875%, 05/15/07 $ 325 $ 323,375
Viasystems, Inc. Sr.
Sub. Notes Cl-B
9.75%, 06/01/07 100 89,000
WESCO Distribution, Inc.
Co. Guarantee Notes
Cl-B
9.125%, 06/01/08 300 291,000
WESCO International,
Inc. Sr. Disc. Notes
Cl-B [STEP]
11.131%, 06/01/08 250 133,750
-----------
837,125
-----------
ENTERTAINMENT & LEISURE -- 2.9%
AMF Group, Inc. Sr.
Disc. Notes [STEP]
10.337%, 03/15/06 137 66,445
Loews Cineplex
Entertainment Corp.
Sr. Sub. Notes 144A
8.875%, 08/01/08 150 146,250
Premier Parks, Inc. Sr.
Disc. Notes [STEP]
9.163%, 04/01/08 1,125 686,250
Premier Parks, Inc. Sr.
Notes
9.25%, 04/01/06 75 75,375
Premier Parks, Inc. Sr.
Notes Cl-A
12.00%, 08/15/03 50 53,750
Regal Cinemas, Inc. Sr.
Sub. Notes 144A
9.50%, 06/01/08 250 248,750
Six Flags Theme Parks
Corp. Sr. Sub. Notes
Cl-A
12.25%, 06/15/05 50 54,375
-----------
1,331,195
-----------
ENVIRONMENTAL SERVICES -- 1.4%
Allied Waste Industries,
Inc. Sr. Disc. Notes
[STEP]
9.693%, 06/01/07 575 434,125
Allied Waste North
America, Inc. Co.
Guarantee Notes
10.25%, 12/01/06 200 219,500
-----------
653,625
-----------
EQUIPMENT SERVICES -- 0.1%
Coinmach Corp. Sr. Notes
Cl-D
11.75%, 11/15/05 50 51,875
-----------
</TABLE>
28
<PAGE> 31
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
FARMING & AGRICULTURE -- 0.1%
Dimon, Inc. Sr. Notes
8.875%, 06/01/06 $ 50 $ 47,250
-----------
FINANCIAL -- BANK & TRUST -- 1.1%
GS Escrow Corp. Sr.
Notes 144A
7.125%, 08/01/05 500 501,605
-----------
FINANCIAL SERVICES -- 0.3%
ContiFinancial Corp. Sr.
Notes
8.125%, 04/01/08 150 92,250
PX Escrow Corp. Sr.
Disc. Notes [STEP]
144A
9.449%, 02/01/06 100 54,500
-----------
146,750
-----------
FOOD -- 3.7%
Ameriserv Food
Distributor, Inc. Co.
Guarantee Sub. Notes
8.875%, 10/15/06 50 44,250
10.125%, 07/15/07 325 271,375
Aurora Foods, Inc. Sr.
Sub. Notes Cl-B
9.875%, 02/15/07 50 53,625
8.75%, 07/01/08 125 130,000
Di Giorgio Corp. Sr.
Notes Cl-B
10.00%, 06/15/07 150 137,250
Eagle Family Foods, Inc.
Co. Guarantee Notes
Cl-B
8.75%, 01/15/08 250 222,500
International Home
Foods, Inc. Sr. Sub.
Notes
10.375%, 11/01/06 450 477,000
Jitney-Jungle Stores,
Inc. Sr. Sub. Notes
10.375%, 09/15/07 150 143,250
Nebco Evans Holding Co.
Sr. Disc. Notes [STEP]
10.875%, 07/15/07 125 59,375
Stater Brothers
Holdings, Inc. Sr.
Sub. Notes
9.00%, 07/01/04 150 134,250
-----------
1,672,875
-----------
FURNITURE -- 0.3%
Sealy Mattress Co. Co.
Guarantee Sub. Notes
Cl-B [STEP]
9.979%, 12/15/07 150 84,750
Sealy Mattress Co. Sr.
Sub. Notes Cl-B
9.875%, 12/15/07 50 45,250
-----------
130,000
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
HEALTHCARE SERVICES -- 3.6%
Alliance Imaging, Inc.
Sr. Sub. Notes
9.625%, 12/15/05 $ 125 $ 115,000
Everest Healthcare
Services, Inc. Co.
Guarantee Sub. Notes
9.75%, 05/01/08 225 208,688
Fisher Scientific
International, Inc.
Sr. Sub. Notes
9.00%, 02/01/08 375 361,875
Hudson Respiratory Care,
Inc. Sr. Sub. Notes
9.125%, 04/15/08 150 100,500
Tenet Healthcare Corp.
Sr. Notes 144A
7.625%, 06/01/08 100 97,902
Tenet Healthcare Corp.
Sr. Sub. Notes
8.00%, 01/15/05 150 152,616
8.625%, 01/15/07 100 104,000
Tenet Healthcare Corp.
Sr. Sub. Notes 144A
8.125%, 12/01/08 500 512,500
-----------
1,653,081
-----------
INDUSTRIAL PRODUCTS -- 1.6%
Continental Global
Group, Inc. Sr. Notes
Cl-B
11.00%, 04/01/07 100 80,500
Grove Worldwide, Inc.
LLC Sr. Sub. Notes
144A
9.25%, 05/01/08 175 153,125
International Utility
Structures, Inc. Sr.
Sub. Notes
10.75%, 02/01/08 50 42,750
ISG Resources, Inc. Sr.
Sub. Notes
10.00%, 04/15/08 300 301,500
MMI Products, Inc. Sr.
Sub. Notes Cl-B
11.25%, 04/15/07 150 156,750
-----------
734,625
-----------
MACHINERY & EQUIPMENT -- 0.7%
Anchor Lamina, Inc. Sr.
Sub. Notes
9.875%, 02/01/08 75 59,625
Clark Materials Handling
Corp. Co. Guarantee
Sr. Sub. Notes
10.75%, 11/15/06 150 152,625
</TABLE>
29
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 32
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Columbus McKinnon Corp.
Co. Guarantee Sub.
Notes
8.50%, 04/01/08 $ 50 $ 46,750
National Equipment
Services, Inc. Sr.
Sub. Notes
10.00%, 11/30/04 50 46,250
-----------
305,250
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 1.4%
CONMED Corp. Co.
Guarantee Sr. Sub.
Notes
9.00%, 03/15/08 325 307,125
Dade International, Inc.
Sr. Sub. Notes Cl-B
11.125%, 05/01/06 325 349,375
-----------
656,500
-----------
METALS & MINING -- 1.9%
AEI Holding Co. Sr.
Notes 144A
10.00%, 11/15/07 250 226,250
AK Steel Corp. Sr. Notes
9.125%, 12/15/06 200 209,000
Euramax International
PLC Sr. Sub. Notes
11.25%, 10/01/06 100 93,500
Metals USA, Inc. Co.
Guarantee Sr. Sub.
Notes
8.625%, 02/15/08 275 221,375
Neenah Corp. Sr. Sub.
Notes Cl-B
11.125%, 05/01/07 50 51,250
Ryerson Tull, Inc. Notes
8.50%, 07/15/01 50 53,714
-----------
855,089
-----------
OFFICE EQUIPMENT -- 0.1%
United Stationers
Supply, Inc. Sr. Sub.
Notes
8.375%, 04/15/08 50 50,000
-----------
OIL & GAS -- 4.0%
Chiles Offshore LLC
Corp. Co. Guarantee
Sub. Notes
10.00%, 05/01/08 175 142,625
Continental Resources,
Inc. Sr. Sub. Notes
144A
10.25%, 08/01/08 300 241,500
Dailey International,
Inc. Co. Guarantee Sr.
Sub. Notes Cl-B
9.50%, 02/15/08 300 127,500
Forcenergy, Inc. Sr.
Sub. Notes
8.50%, 02/15/07 300 220,500
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Houston Exploration Co.
Sr. Sub. Notes Cl-B
8.625%, 01/01/08 $ 200 $ 193,000
KCS Energy, Inc. Co.
Guarantee Sr. Sub.
Notes
8.875%, 01/15/08 250 166,250
Nuevo Energy Co.
Co. Guarantee Sr. Sub.
Notes Cl-B
8.875%, 06/01/08 200 199,000
Pride Petroleum
Services, Inc. Sr.
Notes
9.375%, 05/01/07 350 329,000
Universal Compression,
Inc. Sr. Disc. Notes
[STEP]
9.665%, 02/15/08 325 186,875
-----------
1,806,250
-----------
PRINTING & PUBLISHING -- 1.0%
Garden State Newspapers,
Inc. Sr. Sub. Notes
Cl-B
8.75%, 10/01/09 150 144,750
Hollinger International
Publishing Co.
Co. Guarantee Sr. Sub.
Notes
9.25%, 02/01/06 125 131,250
9.25%, 03/15/07 50 52,250
Ziff-Davis, Inc. Sr.
Sub. Notes
8.50%, 05/01/08 150 128,250
-----------
456,500
-----------
REAL ESTATE -- 1.1%
HMH Properties Co.
Guarantee Sr. Notes
Cl-B
7.875%, 08/01/08 500 485,000
-----------
RETAIL & MERCHANDISING -- 1.1%
Community Distributors,
Inc. Co. Guarantee
Notes Cl-B
10.25%, 10/15/04 50 47,250
Meyer, (Fred), Inc. Co.
Guarantee Sub. Notes
7.45%, 03/01/08 450 473,238
-----------
520,488
-----------
TELECOMMUNICATIONS -- 21.4%
American Cellular Corp.
Sr. Notes 144A
10.50%, 05/15/08 250 238,750
Arch Communications,
Inc. Sr. Notes 144A
12.75%, 07/01/07 150 129,750
</TABLE>
30
<PAGE> 33
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Call-Net Enterprises,
Inc. Sr. Disc. Notes
[STEP]
8.949%, 08/15/07 $ 425 $ 272,000
9.441%, 08/15/08 425 242,250
e.spire Communications,
Inc. Sr. Disc. Notes
[STEP]
10.741%, 11/01/05 200 149,000
ICG Holdings, Inc. Co.
Guarantee Sr. Disc.
Notes [STEP]
11.284%, 05/01/06 175 122,937
9.644%, 03/15/07 200 121,000
Intermedia
Communications, Inc.
Sr. Disc. Notes [STEP]
9.733%, 05/15/06 100 76,500
Intermedia
Communications, Inc.
Sr. Disc. Notes Cl-B
[STEP]
9.625%, 07/15/07 250 167,500
Intermedia
Communications, Inc.
Sr. Notes Cl-B
8.875%, 11/01/07 50 48,000
8.60%, 06/01/08 275 260,562
IXC Communications, Inc.
Sr. Sub. Notes
9.00%, 04/15/08 425 420,750
Level 3 Communications,
Inc. Sr. Notes
9.125%, 05/01/08 900 852,750
McLeodUSA, Inc. Sr.
Disc. Notes [STEP]
10.092%, 03/01/07 525 380,625
McLeodUSA, Inc. Sr.
Notes
8.375%, 03/15/08 150 145,500
MetroNet Communications
Corp. Sr. Disc. Notes
[STEP]
11.588%, 11/01/07 150 90,000
10.844%, 06/15/08 800 436,000
Millicom International
Cellular SA Sr. Disc.
Notes [STEP]
10.762%, 06/01/06 200 119,000
Nextel Communications,
Inc. Sr. Disc. Notes
[STEP]
10.361%, 09/15/07 500 297,500
11.01%, 02/15/08 900 495,000
Nextel International,
Inc. Sr. Disc. Notes
[STEP]
12.125%, 04/15/08 50 18,625
NEXTLINK Communications,
Inc.
Sr. Notes
9.00%, 03/15/08 150 137,250
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Orange PLC Sr. Notes
8.00%, 08/01/08 $ 300 $ 292,500
Paging Network, Inc. Sr.
Sub. Notes
10.125%, 08/01/07 50 49,500
10.00%, 10/15/08 325 318,500
Pathnet, Inc. Sr. Notes
12.25%, 04/15/08 100 72,000
PSINet, Inc. Sr. Notes
144A
11.50%, 11/01/08 125 129,375
PSINet, Inc. Sr. Notes
Cl-B
10.00%, 02/15/05 325 319,312
Qwest Communications
International, Inc.
Sr. Disc. Notes [STEP]
8.243%, 10/15/07 700 542,500
Qwest Communications
International, Inc.
Sr. Notes Cl-B
10.875%, 04/01/07 50 58,125
Qwest Communications
International, Inc.
144A
7.50%, 11/01/08 400 407,500
Rogers Cantel, Inc. Sr.
Sub. Notes
8.80%, 10/01/07 225 210,937
Sitel Corp. Co.
Guarantee Sub. Notes
9.25%, 03/15/06 225 195,188
Telecommunications
Techniques Co. Sr.
Sub. Notes 144A
9.75%, 05/15/08 400 334,000
Telesystem International
Wireless, Inc. Sr.
Disc. Notes Cl-B
[STEP]
11.342%, 06/30/07 225 75,375
Telesystem International
Wireless, Inc. Sr.
Disc. Notes Cl-C
[STEP]
10.352%, 11/01/07 75 21,375
Teligent, Inc. Sr. Notes
11.50%, 12/01/07 375 305,625
Triton Communications
LLC Sr. Disc. Notes
[STEP]
13.901%, 05/01/08 525 203,438
US Xchange LLC Sr. Notes
144A
15.00%, 07/01/08 100 100,250
Viacom, Inc. Sub. Debs.
8.00%, 07/07/06 775 804,063
Viatel, Inc. Sr. Disc.
Notes [STEP]
11.473%, 04/15/08 50 23,750
</TABLE>
31
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 34
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Viatel, Inc. Sr. Notes
11.25%, 04/15/08 $ 75 $ 67,125
-----------
9,751,687
-----------
TRANSPORTATION -- 2.7%
Allied Holdings, Inc.
Notes Cl-B
8.625%, 10/01/07 150 146,250
Ameritruck Distribution
Corp. Sr. Sub. Notes
144A+
12.25%, 11/15/05 50 3,250
Gearbulk Holding Ltd.
Sr. Notes
11.25%, 12/01/04 300 311,250
Holt Group Sr. Notes
144A
9.75%, 01/15/06 100 66,500
Oshkosh Truck Corp. Co.
Guarantee Notes
8.75%, 03/01/08 100 93,500
Stena AB Sr. Notes
10.50%, 12/15/05 350 358,750
8.75%, 06/15/07 200 185,000
Stena Line AB Sr. Notes
10.625%, 06/01/08 100 87,500
-----------
1,252,000
-----------
UTILITIES -- 1.8%
El Paso Electric Co.
First Mtge. Cl-E
9.40%, 05/01/11 300 342,099
Niagara Mohawk Power
Corp. Sr. Disc. Notes
Cl-H [STEP]
7.788%, 07/01/10 650 473,239
-----------
815,338
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $43,736,499) 40,827,523
-----------
SHARES
------
COMMON STOCK -- 0.0%
TELECOMMUNICATIONS
Pathnet, Inc. Warrants*
(Cost $0) 100 2,500
-----------
PREFERRED STOCK -- 3.0%
BROADCASTING -- 1.2%
Benedek Communications
Corp.
11.50% [PIK] 100 84,500
Cumulus Media, Inc. Cl-A
13.75% 103 105,575
SFX Broadcasting, Inc.
Cl-E
12.625% [PIK] 500 58,750
Sinclair Capital Cl-A
$11.625 3,100 311,550
-----------
560,375
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
FOOD -- 0.1%
Nebco Evans Holding Co.
11.25% [PIK] 579 $ 29,240
-----------
HEALTHCARE SERVICES -- 0.1%
River Holding Corp. Cl-B
11.50% [PIK] 530 23,585
-----------
PRINTING & PUBLISHING -- 0.9%
Primedia, Inc. Cl-F
$9.20 2,250 223,875
Primedia, Inc. Cl-H
8.625% 2,250 205,875
-----------
429,750
-----------
TELECOMMUNICATIONS -- 0.1%
Nextel Communications,
Inc. Cl-E
11.125% [PIK] 25 20,625
Viatel, Inc. Cl-A
10.00% [PIK] 62 3,336
-----------
23,961
-----------
UTILITIES -- 0.6%
Texas Utilities Co.
9.25% 5,000 267,345
-----------
TOTAL PREFERRED STOCK
(Cost $1,408,250) 1,334,256
-----------
PAR
(000)
------
REPURCHASE AGREEMENTS -- 10.3%
Greenwich Capital Markets,
Inc., 5.35%, dated
10/30/98, maturing
11/02/98, repurchase
price $4,701,095
(Collateralized by U.S.
Treasury Notes, par
value $4,540,000, market
value $4,793,956, due
10/31/00)
(Cost $4,699,000) $4,699 4,699,000
-----------
TOTAL INVESTMENTS -- 102.8%
(Cost $49,843,749) 46,863,279
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (2.8%) (1,254,877)
-----------
NET ASSETS -- 100.0% $45,608,402
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
+ Illiquid security. At the end of the year this security amounted to 0.01% of
net assets.
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 year, these securities amounted
to 14.8% of net assets.
See Notes to Financial Statements.
32
<PAGE> 35
ASAF ROBERTSON STEPHENS
VALUE + GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 98.1%
BUSINESS SERVICES -- 1.5%
Robert Half
International, Inc.* 7,491 $ 300,548
-----------
CLOTHING & APPAREL -- 2.0%
Nike, Inc. Cl-B 9,100 397,556
-----------
COMPUTER HARDWARE -- 7.0%
3Com Corp.* 11,655 420,308
Compaq Computer Corp. 22,350 706,819
Gateway 2000, Inc.* 4,285 239,157
-----------
1,366,284
-----------
COMPUTER SERVICES & SOFTWARE -- 20.4%
BMC Software, Inc.* 7,525 361,670
Cisco Systems, Inc.* 6,400 403,200
CompUSA, Inc.* 32,010 444,139
Electronic Arts, Inc.* 11,275 463,684
Ingram Micro, Inc.
Cl-A* 8,765 398,807
Microsoft Corp.* 8,335 882,468
National Data Corp. 10,240 346,880
Oracle Corp.* 15,535 459,253
Tech Data Corp.* 6,565 258,497
-----------
4,018,598
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.5%
Tandy Corp. 8,800 436,150
Texas Instruments, Inc. 10,110 646,408
-----------
1,082,558
-----------
ENTERTAINMENT & LEISURE -- 2.7%
Time Warner, Inc. 5,760 534,600
-----------
FINANCIAL -- BANK & TRUST -- 2.4%
MBNA Corp. 13,025 297,133
Mellon Bank Corp. 3,000 180,375
-----------
477,508
-----------
FINANCIAL SERVICES -- 5.5%
Household
International, Inc. 12,565 459,408
Merrill Lynch & Co.,
Inc. 10,603 628,228
-----------
1,087,636
-----------
FOOD -- 3.2%
Safeway, Inc.* 13,285 635,189
-----------
HEALTHCARE
SERVICES -- 4.1%
Omnicare, Inc. 14,280 493,553
United Healthcare Corp. 7,100 309,294
-----------
802,847
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 1.2%
Becton Dickinson & Co. 4,925 207,466
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT -- 2.4%
Staples, Inc.* 14,460 $ 471,758
-----------
PHARMACEUTICALS -- 8.2%
Lilly, (Eli) & Co. 7,070 572,228
McKesson Corp. 7,250 558,250
Merck & Co., Inc. 3,625 490,281
-----------
1,620,759
-----------
RAILROADS -- 0.8%
Kansas City Southern
Industries, Inc. 4,000 154,500
-----------
RETAIL & MERCHANDISING -- 15.5%
Bed, Bath & Beyond,
Inc.* 15,700 432,731
Best Buy Co., Inc.* 9,805 470,640
Costco Companies, Inc.* 9,640 547,070
CVS Corp. 12,627 576,896
Starbucks Corp.* 5,676 246,197
Wal-Mart Stores, Inc. 4,205 290,145
Walgreen Co. 9,930 483,467
-----------
3,047,146
-----------
SEMICONDUCTORS -- 10.7%
Intel Corp. 12,620 1,125,546
Micron Technology,
Inc.* 25,710 976,980
-----------
2,102,526
-----------
TELECOMMUNICATIONS --5.0%
Comcast Corp. Cl-A 6,345 313,284
MCI WorldCom, Inc.* 12,265 677,641
-----------
990,925
-----------
TOTAL COMMON STOCK
(Cost $18,034,734) 19,298,404
-----------
SHORT-TERM INVESTMENTS -- 3.3%
Temporary Investment
Cash Fund 323,173 323,173
Temporary Investment
Fund 323,172 323,172
-----------
(Cost $646,345) 646,345
-----------
TOTAL INVESTMENTS -- 101.4%
(Cost $18,681,079) 19,944,749
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.4%) (273,627)
-----------
NET ASSETS -- 100.0% $19,671,122
===========
</TABLE>
- -------------------------------------------------------
* Non-income producing securities.
See Notes to Financial Statements.
33
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 36
ASAF LORD ABBETT
GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 91.2%
AEROSPACE -- 0.4%
United Technologies
Corp. 1,500 $ 142,875
-----------
AUTOMOBILE MANUFACTURERS -- 2.3%
Ford Motor Co. 7,000 379,750
General Motors Corp. 6,000 378,375
-----------
758,125
-----------
BROADCASTING -- 1.1%
CBS Corp. 13,000 363,187
-----------
CHEMICALS -- 0.9%
Du Pont, (E.I.) de
Nemours & Co. 5,000 287,500
-----------
CLOTHING & APPAREL -- 1.0%
VF Corp. 8,000 334,500
-----------
COMPUTER HARDWARE --5.1%
EMC Corp.* 5,000 321,875
International Business
Machines Corp. 7,000 1,039,062
Seagate Technology,
Inc.* 12,000 316,500
-----------
1,677,437
-----------
COMPUTER SERVICES & SOFTWARE -- 2.5%
First Data Corp. 12,000 318,000
Sun Microsystems,
Inc.* 9,000 524,250
-----------
842,250
-----------
CONGLOMERATES -- 1.9%
Philip Morris
Companies, Inc. 12,000 613,500
-----------
CONSUMER PRODUCTS & SERVICES -- 2.4%
Eastman Kodak Co. 8,000 620,000
Fortune Brands, Inc. 5,000 165,312
-----------
785,312
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 4.2%
Emerson Electric Co. 14,000 924,000
Texas Instruments,
Inc. 7,000 447,563
-----------
1,371,563
-----------
ENTERTAINMENT & LEISURE -- 0.5%
Time Warner, Inc. 2,000 185,625
-----------
ENVIRONMENTAL SERVICES -- 2.8%
Browning-Ferris
Industries, Inc. 5,000 177,187
Waste Management, Inc. 16,000 722,000
-----------
899,187
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ----------------------------------------------------
- ----------------------------------------------------
<S> <C> <C>
FINANCIAL -- BANK & TRUST -- 6.2%
Banc One Corp. 8,000 $ 391,000
BankAmerica Corp. 6,000 344,625
Chase Manhattan Corp. 8,000 454,500
First Union Corp. 8,000 464,000
Mellon Bank Corp. 6,000 360,750
-----------
2,014,875
-----------
FINANCIAL SERVICES -- 4.6%
Citigroup, Inc. 10,000 470,625
Morgan Stanley, Dean
Witter & Co. 7,000 453,250
Providian Financial
Corp. 1,500 119,062
Washington Mutual,
Inc. 12,000 449,250
-----------
1,492,187
-----------
FOOD -- 5.2%
Bestfoods, Inc. 8,000 436,000
Heinz, (H.J.) Co. 10,000 581,250
Ralston Purina Group 20,000 667,500
-----------
1,684,750
-----------
HEALTHCARE SERVICES -- 1.0%
Columbia HCA
Healthcare Corp. 15,000 315,000
-----------
INSURANCE -- 7.8%
American General Corp. 11,000 753,500
Chubb Corp. 7,000 430,500
CIGNA Corp. 5,000 364,688
Jefferson-Pilot Corp. 7,000 425,250
St. Paul Companies,
Inc. 5,000 165,625
Transamerica Corp. 4,000 416,000
-----------
2,555,563
-----------
MACHINERY & EQUIPMENT -- 1.6%
Deere & Co. 15,000 530,625
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 1.5%
Baxter International,
Inc. 8,000 479,500
-----------
OIL & GAS -- 8.3%
British Petroleum Co.
PLC [ADR] 8,000 707,500
Coastal Corp. 12,000 423,000
Mobil Corp. 10,000 756,875
Occidental Petroleum
Corp. 12,000 238,500
Total SA [ADR] 10,000 585,000
-----------
2,710,875
-----------
</TABLE>
34
<PAGE> 37
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 2.8%
Bowater, Inc. 8,000 $ 326,500
Champion International
Corp. 8,000 255,500
Fort James Corp. 4,000 161,250
Georgia Pacific Timber
Group 7,000 155,313
-----------
898,563
-----------
PHARMACEUTICALS -- 4.2%
American Home Products
Corp. 13,000 633,750
Pharmacia & Upjohn,
Inc. 10,000 529,375
SmithKline Beecham PLC
[ADR] 2,000 127,500
Warner-Lambert Co. 900 70,538
-----------
1,361,163
-----------
PRINTING & PUBLISHING -- 1.4%
Dow Jones & Co., Inc. 10,000 458,125
-----------
RETAIL & MERCHANDISING -- 4.4%
May Department Stores
Co. 10,000 610,000
Wal-Mart Stores, Inc. 12,000 828,000
-----------
1,438,000
-----------
TELECOMMUNICATIONS -- 10.1%
Alltel Corp. 10,000 468,125
AT&T Corp. 16,000 996,000
Bell Atlantic Corp. 12,000 637,500
MCI WorldCom, Inc.* 10,000 552,500
SBC Communications,
Inc. 14,000 648,375
-----------
3,302,500
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ----------------------------------------------------
- ----------------------------------------------------
<S> <C> <C>
UTILITIES -- 7.0%
Carolina Power & Light
Co. 12,000 $ 550,500
Duke Energy Corp. 8,000 517,500
FirstEnergy Corp. 16,000 480,000
Florida Progress Corp. 10,000 419,375
FPL Group, Inc. 5,000 312,813
-----------
2,280,188
-----------
TOTAL COMMON STOCK
(Cost $28,870,940) 29,782,975
-----------
PREFERRED STOCK -- 2.3%
INSURANCE -- 1.3%
Aetna, Inc. CI-C
6.25% [CVT] 6,000 429,000
-----------
UTILITIES -- 1.0%
Houston Industries,
Inc. 7.00% [CVT] 4,000 324,250
-----------
TOTAL PREFERRED STOCK
(Cost $726,354) 753,250
-----------
SHORT-TERM INVESTMENTS -- 9.5%
Temporary Investment
Cash Fund 1,551,958 1,551,958
Temporary Investment
Fund 1,551,958 1,551,958
-----------
(Cost $3,103,916) 3,103,916
-----------
TOTAL INVESTMENTS -- 103.0%
(Cost $32,701,210) 33,640,141
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (3.0%) (988,913)
-----------
NET ASSETS -- 100.0% $32,651,228
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
35
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 38
ASAF JANUS
OVERSEAS GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 75.2%
ARGENTINA -- 0.0%
Disco SA [ADR]*
(Food) 55 $ 808
Telefonica de Argentina
SA Cl-B [ADR]
(Telecommunications) 610 20,168
-----------
20,976
-----------
AUSTRIA -- 0.1%
Bank Austria AG
(Financial-Bank &
Trust) 1,164 63,334
-----------
BRAZIL -- 0.2%
Telecomunicacoes
Brasileiras SA [ADR]
(Telecommunications) 170 12,920
Telecomunicacoes
Brasileiras SA Pfd.
[ADR]
(Telecommunications) 1,130 85,809
-----------
98,729
-----------
CANADA -- 0.4%
Newcourt Credit Group,
Inc.
(Financial Services) 5,740 188,702
-----------
CHILE -- 0.1%
Cia de
Telecomunicaciones de
Chile SA [ADR]
(Telecommunications) 1,005 22,047
-----------
DENMARK -- 0.2%
BG Bank AS
(Financial -- Bank &
Trust) 62 3,594
Ratin AS Cl-B
(Environmental
Services) 396 67,954
SAS Danmark AS
(Airlines) 177 2,499
Unidanmark AS Cl-A
(Financial Services) 66 5,032
-----------
79,079
-----------
FINLAND -- 3.9%
Nokia Corp. Cl-A [ADR]
(Telecommunications) 5,210 484,856
Nokia Oyj Cl-A
(Telecommunications) 11,344 1,032,319
Raisio Group PLC
(Farming &
Agriculture) 1,525 20,582
Sampo Insurance Co. Ltd.
Cl-A
(Insurance) 2,912 90,740
Tieto Corp. Cl-B
(Computer Services &
Software) 3,473 100,708
-----------
1,729,205
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
FRANCE -- 8.4%
Alcatel
(Telecommunications) 199 $ 22,167
Alcatel SA [ADR]
(Telecommunications) 840 18,480
Atos SA*
(Computer Services &
Software) 780 147,104
Cap Gemini SA
(Computer Services &
Software) 3,790 569,501
Cap Gemini SA 144A
(Computer Services &
Software) 236 35,462
Castorama Dubois
(Retail &
Merchandising) 290 51,718
Cie des Signaux SA
(Electronic Components
& Equipment) 21 1,436
Compagnie Francaise
d'Etudes et de
Construction Technip
(Construction) 40 4,067
Equant NV*
(Computer Services &
Software) 791 34,277
Groupe Danone
(Food) 1,205 318,550
Jet Multimedia
(Business Services) 266 42,076
Lagardere S.C.A.
(Business Services) 1,570 63,174
Renault SA
(Automobile
Manufacturers) 4,112 175,746
Rhone-Poulenc Cl-A
(Chemicals) 3,353 153,263
Sanofi SA
(Medical Supplies &
Equipment) 722 113,038
Societe Nationale Elf
Aquitaine SA
(Oil & Gas) 474 54,848
STMicroelectronics NV*
(Electronic Components
& Equipment) 1,220 74,191
Suez Lyonnaise des Eaux
(Construction) 3,281 587,487
Total SA Cl-B
(Oil & Gas) 466 53,754
Valeo SA
(Automotive Parts) 373 32,287
Valeo SA 144A
(Automotive Parts) 1,902 164,636
Vivendi
(Environmental
Services) 4,651 1,062,128
-----------
3,779,390
-----------
</TABLE>
36
<PAGE> 39
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
GERMANY --7.2%
Bayerische Hypo-Und
Vereinsbank AG
(Financial-Bank &
Trust) 1,012 $ 80,658
Deutsche Pfandbrief &
Hypothekenbank AG
(Financial-Bank &
Trust) 8,089 649,589
Deutsche Telekom AG
(Telecommunications) 381 10,306
Ergo Versicherungs
Gruppe AG
(Insurance) 106 17,281
Hoechst AG
(Chemicals) 2,002 83,528
Mannesmann AG
(Industrial Products) 11,751 1,138,077
Marschollek,
Lautenschlaeger und
Partner AG Non-Voting
Pfd.
(Insurance) 210 106,891
Merck KGaA
(Pharmaceuticals) 263 10,719
MobilCom AG
(Telecommunications) 334 97,809
Muenchener
Rueckversicherung AG
Rights*
(Insurance) 4 1,811
Muenchener
Rueckversicherung AG
Warrants*
(Insurance) 4 171
Porsche AG Pfd.
(Automobile
Manufacturers) 295 525,456
SAP AG Pfd.
(Computer Services &
Software) 913 444,322
Veba AG
(Utilities) 945 51,867
-----------
3,218,485
-----------
GREECE -- 0.1%
STET Hellas
Telecommunications SA
[ADR]*
(Telecommunications) 1,185 31,106
-----------
HONG KONG -- 0.4%
China Telecom Ltd.
(Telecommunications) 99,000 185,965
-----------
IRELAND -- 2.1%
Elan Corp. PLC [ADR]*
(Pharmaceuticals) 13,286 930,850
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
ITALY -- 2.3%
Banca Commerciale Italia
NA
(Financial-Bank &
Trust) 22,481 $ 139,014
Banca di Roma
(Financial-Bank &
Trust) 142,692 249,114
Telecom Italia Mobile
SPA
(Telecommunications) 73,880 429,110
Telecom Italia SPA
(Telecommunications) 27,762 200,818
Unicredito Italiano SPA
(Financial-Bank &
Trust) 1,917 10,298
-----------
1,028,354
-----------
JAPAN -- 8.6%
Bridgestone Corp.
(Automotive Parts) 3,000 66,036
Honda Motor Co. Ltd.
(Automobile
Manufacturers) 1,000 30,036
Ito-Yokado Co. Ltd.
(Food) 5,000 291,779
Kao Corp.
(Consumer Products &
Services) 32,000 648,093
Kirin Brewery Co. Ltd.
(Beverages) 36,000 392,357
Nippon Telegraph &
Telephone Corp.
(Telecommunications) 75 586,991
NTT Mobile Communication
Network, Inc.
(Telecommunications) 27 975,486
Rohm Co. Ltd.
(Electronic Components
& Equipment) 1,000 88,392
Sony Corp.
(Electronic Components
& Equipment) 3,200 203,216
Takeda Chemical
Industries Ltd.
(Pharmaceuticals) 18,000 585,446
-----------
3,867,832
-----------
KOREA -- 0.5%
SK Telecom Co. Ltd.
[ADR]
(Telecommunications) 21,470 221,409
-----------
</TABLE>
37
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 40
ASAF JANUS
OVERSEAS GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
MEXICO -- 0.3%
Coca-Cola Femsa SA [ADR]
(Beverages) 800 $ 13,200
Grupo Televisa SA [GDR]*
(Broadcasting) 4,130 112,026
-----------
125,226
-----------
NETHERLANDS -- 8.8%
AKZO Nobel NV
(Chemicals) 3,592 139,627
Equant NV*
(Computer Services &
Software) 1,346 58,888
Getronics NV
(Computer Services &
Software) 12,922 536,203
Koninklijke Ahold NV
(Food) 20,455 680,125
Koninklijke Ahrend Groep
NV
(Office Equipment) 237 4,809
Royal Philips
Electronics NV
(Electronic Components
& Equipment) 2,731 145,347
Royal Philips
Electronics NV [ADR]
(Electronic Components
& Equipment) 4,152 227,841
Simac Techniek NV
(Electronic Components
& Equipment) 196 23,507
Unilever NV
(Consumer Products &
Services) 10,848 805,027
Wolters Kluwer NV
(Printing &
Publishing) 6,799 1,317,805
-----------
3,939,179
-----------
NORWAY -- 0.1%
Den Norske Bank ASA
(Financial-Bank &
Trust) 1,926 6,767
Elektronisk
Databehandling ASA
(Computer Services &
Software) 4,989 14,550
NCL Holdings ASA*
(Entertainment &
Leisure) 13,245 34,316
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
SAS Norge ASA Cl-B
(Airlines) 231 $ 2,413
Storebrand ASA
(Insurance) 451 3,518
-----------
61,564
-----------
PORTUGAL -- 0.0%
Cimpor-Cimentos de
Portugal SA
(Building Materials) 502 17,367
-----------
SPAIN -- 2.0%
Banco Bilbao Vizcaya SA
(Financial-Bank &
Trust) 12,336 166,093
Banco Central
Hispanoamericano SA
(Financial-Bank &
Trust) 6,140 67,659
Corporacion Bancaria de
Espana SA
(Financial-Bank &
Trust) 3,332 72,370
Endesa SA
(Utilities) 5,143 129,381
Prosegur, CIA de
Seguridad SA
(Consumer Products &
Services) 5,965 72,071
Tele Pizza SA*
(Restaurants) 1,947 15,867
Telefonica SA
(Telecommunications) 6,182 278,619
Telefonica SA [ADR]
(Telecommunications) 856 117,219
-----------
919,279
-----------
SWEDEN -- 4.4%
Assa Abloy AB Cl-B
(Metals & Mining) 14,571 579,719
Astra AB Cl-A
(Pharmaceuticals) 6,158 99,655
Electrolux AB Cl-B
(Consumer Products &
Services) 12,934 194,419
Ericsson, (L.M.)
Telephone Co. [ADR]
(Telecommunications) 8,060 182,358
Ericsson, (L.M.)
Telephone Co. Cl-B
(Telecommunications) 189 4,255
Ortivus AB Cl-B*
(Medical Supplies &
Equipment) 59 400
Pharmacia & Upjohn, Inc.
(Pharmaceuticals) 477 24,348
SAS Sverige AB
(Airlines) 315 3,425
</TABLE>
38
<PAGE> 41
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Securitas AB
(Consumer Products &
Services) 65,136 $ 799,945
Skandinaviska Enskilda
Banken
(Financial-Bank &
Trust) 1,285 12,987
WM-Data AB Cl-B
(Computer Services &
Software) 2,310 83,926
-----------
1,985,437
-----------
SWITZERLAND -- 6.3%
Adecco SA
(Business Services) 646 257,620
Julius Baer Holdings AG
Cl-B
(Financial-Bank &
Trust) 3 9,194
Kuoni Reisen AG
(Entertainment &
Leisure) 58 207,313
Nestle SA
(Food) 370 786,949
Schweizerische
Lebensversicherungs-Und
Rentenanstalt
(Insurance) 80 48,150
Swisscom AG*
(Telecommunications) 3,000 1,016,919
UBS AG
(Financial-Bank &
Trust) 345 94,652
Zurich Allied AG
(Financial Services) 682 414,512
-----------
2,835,309
-----------
UNITED KINGDOM -- 18.8%
Allied Domecq PLC
(Beverages) 1,965 18,099
Amvescap PLC
(Financial Services) 12,835 98,446
British Petroleum Co.
PLC
(Oil & Gas) 3,395 49,863
Capita Group PLC
(Business Services) 52,223 526,935
COLT Telecom Group PLC*
(Computer Services &
Software) 72,991 953,460
Compass Group PLC
(Food) 131,500 1,332,354
Diageo PLC
(Consumer Products &
Services) 7,887 85,194
Electrocomponents PLC
(Electronic Components
& Equipment) 560 3,707
Energis PLC*
(Telecommunications) 15,299 207,533
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Glaxo Wellcome PLC
(Pharmaceuticals) 9,251 $ 287,544
Hays PLC
(Business Services) 20,234 298,366
JBA Holdings PLC
(Computer Services &
Software) 380 1,782
Lloyds TSB Group PLC
(Financial-Bank &
Trust) 5,738 70,870
Logica PLC
(Computer Services &
Software) 10,932 369,361
Misys PLC
(Computer Services &
Software) 5,236 36,741
National Westminster
Bank PLC
(Financial-Bank &
Trust) 580 9,801
Rentokil Initial PLC
(Environmental
Services) 234,429 1,468,322
Royal & Sun Alliance
Insurance Group PLC
(Insurance) 79 724
Schroders PLC
(Financial-Bank &
Trust) 790 15,016
Select Appointments
Holdings PLC
(Business Services) 8,341 72,637
Select Appointments
Holdings PLC [ADR]
(Business Services) 3,470 58,990
SEMA Group PLC
(Computer Services &
Software) 15,808 128,133
Siebe PLC
(Electronic Components
& Equipment) 24,964 102,428
SmithKline Beecham PLC
(Pharmaceuticals) 53,259 666,273
SmithKline Beecham PLC
[ADR]
(Pharmaceuticals) 3,685 234,919
Tomkins PLC
(Conglomerates) 18,357 85,003
Vodafone Group PLC
(Telecommunications) 34,075 456,525
Williams PLC
(Industrial Products) 75,798 473,166
WPP Group PLC
(Advertising) 71,312 354,697
-----------
8,466,889
-----------
TOTAL FOREIGN STOCK
(Cost $32,446,220) 33,815,713
-----------
</TABLE>
39
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 42
ASAF JANUS
OVERSEAS GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. STOCK -- 2.3%
PHARMACEUTICALS -- 1.9%
Pharmacia & Upjohn, Inc. 16,265 $ 861,028
-----------
TELECOMMUNICATIONS -- 0.4%
Cellular Communications
International, Inc.* 645 40,090
Global TeleSystems
Group, Inc.* 3,896 156,084
-----------
196,174
-----------
TOTAL U.S. STOCK
(Cost $972,934) 1,057,202
-----------
PAR
(000)
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 19.6%
Federal Mortgage Corp.
Disc. Notes
5.40%, 11/02/98
(Cost $8,798,680) $8,800 8,798,680
-----------
TOTAL INVESTMENTS -- 97.1%
(Cost $42,217,834) 43,671,595
OTHER ASSETS LESS
LIABILITIES -- 2.9% 1,285,423
-----------
NET ASSETS -- 100.0% $44,957,018
===========
</TABLE>
-------------------------------------------------------
Foreign currency exchange contracts outstanding at October 31, 1998:
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE RECEIVE FOR AT VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nov-98 Buy DEM 440,000 $ 264,501 $ 265,724 $ 1,223
Dec-98 Buy DEM 1,150,000 699,279 695,183 (4,096)
Nov-98 Buy FRF 610,000 109,287 109,763 476
Nov-98 Buy HKD 145,239 18,751 18,749 (2)
Nov-98 Buy JPY 75,139,851 638,976 645,341 6,365
Dec-98 Buy JPY 30,000,000 224,758 258,616 33,858
Apr-99 Buy JPY 6,000,000 52,329 52,640 311
Nov-98 Buy NLG 405,000 212,717 217,021 4,304
----------- ----------- ---------
$ 2,220,598 $ 2,263,037 $ 42,439
=========== =========== =========
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE DELIVER FOR AT VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nov-98 Sell CHF 143,180 $ 96,946 $ 105,938 $ (8,992)
Apr-99 Sell CHF 180,000 135,972 135,161 811
Nov-98 Sell DEM 1,492,194 882,768 901,299 (18,531)
Dec-98 Sell DEM 1,600,000 902,112 967,212 (65,100)
Nov-98 Sell DKK 85 13 14 (1)
Nov-98 Sell ESP 33,428,307 237,501 237,015 486
Nov-98 Sell FIM 342 68 68 0
Nov-98 Sell FRF 610,778 103,145 109,903 (6,758)
Nov-98 Sell GBP 363,503 594,374 608,512 (14,138)
Apr-99 Sell GBP 2,751,000 4,620,595 4,569,577 51,018
Nov-98 Sell JPY 68,000,000 485,553 584,044 (98,491)
Dec-98 Sell JPY 40,000,000 282,217 344,822 (62,605)
Feb-99 Sell JPY 245,000,000 2,113,131 2,133,527 (20,396)
Apr-99 Sell JPY 79,000,000 675,405 693,754 (18,349)
Nov-98 Sell NLG 2,224,703 1,114,011 1,191,979 (77,968)
Dec-98 Sell NLG 400,000 200,004 214,553 (14,549)
Nov-98 Sell NOK 37,983 5,151 5,150 1
Apr-99 Sell SEK 2,425,000 309,808 312,114 (2,306)
----------- ----------- ---------
$12,758,774 $13,114,642 $(355,868)
=========== =========== =========
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
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 year, these securities amounted
to 0.5% of net assets.
See Notes to Financial Statements.
40
<PAGE> 43
ASAF MARSICO
CAPITAL GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 81.0%
AEROSPACE -- 0.8%
Gulfstream Aerospace
Corp.* 7,831 $ 346,522
------------
AIRLINES -- 5.9%
Alaska Air Group, Inc.* 17,098 614,459
Delta Air Lines, Inc. 11,968 1,263,372
UAL Corp.* 9,092 590,412
------------
2,468,243
------------
AUTOMOBILE MANUFACTURERS -- 4.0%
Ford Motor Co. 31,118 1,688,152
------------
AUTOMOTIVE RENTAL -- 2.3%
Hertz Corp. Cl-A 26,895 963,177
------------
BEVERAGES -- 1.6%
Anheuser-Busch
Companies, Inc. 9,230 548,608
Coca-Cola Enterprises,
Inc. 3,238 116,770
------------
665,378
------------
COMPUTER HARDWARE -- 6.4%
Dell Computer Corp.* 6,237 409,303
EMC Corp.* 34,107 2,195,638
International Business
Machines Corp. 447 66,352
------------
2,671,293
------------
COMPUTER SERVICES & SOFTWARE -- 10.2%
America Online, Inc.* 9,177 1,166,053
Cisco Systems, Inc.* 30,270 1,907,010
Microsoft Corp.* 11,252 1,191,306
------------
4,264,369
------------
CONSTRUCTION -- 0.8%
M.D.C. Holdings, Inc. 20,000 351,250
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 0.8%
General Electric Co. 3,675 321,562
------------
ENTERTAINMENT & LEISURE -- 5.7%
Carnival Corp. Cl-A 23,246 752,589
Time Warner, Inc. 17,571 1,630,808
------------
2,383,397
------------
FINANCIAL -- BANK & TRUST -- 4.7%
Northern Trust Corp. 13,571 1,000,861
Norwest Corp. 21,108 784,954
U.S. Bancorp 4,798 175,127
------------
1,960,942
------------
FINANCIAL SERVICES -- 11.7%
Associates First
Capital Corp. Cl-A 11,648 821,184
Citigroup, Inc. 35,304 1,661,494
Fannie Mae 7,338 519,622
Merrill Lynch & Co.,
Inc. 21,198 1,255,983
Newcourt Credit Group,
Inc. 20,228 664,995
------------
4,923,278
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
HEALTHCARE SERVICES -- 3.4%
IMS Health, Inc. 10,184 $ 677,236
Schering-Plough Corp. 7,325 753,559
------------
1,430,795
------------
HOTELS & MOTELS -- 0.2%
Four Seasons Hotels,
Inc. 3,143 72,289
------------
PHARMACEUTICALS -- 9.0%
Pfizer, Inc. 17,618 1,890,632
Warner-Lambert Co. 23,774 1,863,287
------------
3,753,919
------------
RESTAURANTS -- 1.7%
McDonald's Corp. 10,846 725,326
------------
RETAIL & MERCHANDISING -- 5.6%
Amazon.com, Inc. 8,746 1,105,822
Home Depot, Inc. 28,212 1,227,222
------------
2,333,044
------------
TELECOMMUNICATIONS -- 6.1%
Lucent Technologies,
Inc. 15,118 1,212,275
MediaOne Group, Inc.* 31,263 1,322,816
------------
2,535,091
------------
TOTAL COMMON STOCK
(Cost $31,672,348) 33,858,027
------------
PAR
(000)
------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 23.7%
Federal Home Loan Bank
Disc. Notes
5.40%, 11/02/98
(Cost $9,898,515) $9,900 9,898,515
------------
SHARES
------
SHORT-TERM INVESTMENTS -- 0.2%
Temporary Investment
Cash Fund 35,542 35,542
Temporary Investment
Fund 35,541 35,541
------------
(Cost $71,083) 71,083
------------
TOTAL INVESTMENTS -- 104.9%
(Cost $41,641,946) 43,827,625
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (4.9%) (2,039,057)
------------
NET ASSETS -- 100.0% $ 41,788,568
============
</TABLE>
- -------------------------------------------------------
* Non-income producing securities.
See Notes to Financial Statements.
41
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 44
ASAF NEUBERGER&BERMAN
MID-CAP GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 79.6%
AIRLINES -- 3.0%
US Airways Group, Inc.* 1,600 $ 90,500
----------
AUTOMOTIVE PARTS -- 2.7%
Tower Automotive, Inc.* 3,600 80,100
----------
AUTOMOTIVE RENTAL -- 2.5%
Avis Rent A Car, Inc.* 3,700 75,388
----------
BROADCASTING -- 3.6%
Chancellor Media Corp.* 2,800 107,450
----------
CLOTHING & APPAREL -- 2.9%
Abercrombie & Fitch Co.
Cl-A* 2,200 87,312
----------
COMPUTER SERVICES & SOFTWARE -- 14.7%
BMC Software, Inc.* 1,700 81,706
Compuware Corp.* 1,700 92,119
Edwards, (J.D.) & Co.* 2,900 94,975
Infoseek Corp.* 2,700 79,819
Network Associates,
Inc.* 2,100 89,250
----------
437,869
----------
CONSUMER PRODUCTS & SERVICES --0.4%
Safeskin Corp.* 600 13,276
----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.7%
Altera Corp.* 2,100 87,412
Sanmina Corp.* 2,000 82,000
----------
169,412
----------
ENVIRONMENTAL SERVICES -- 4.0%
Republic Services, Inc.
Cl-A* 5,400 118,125
----------
FINANCIAL SERVICES -- 3.3%
Donaldson, Lufkin &
Jenrette, Inc. 300 10,725
FINOVA Group, Inc. 1,800 87,750
----------
98,475
----------
FOOD -- 2.3%
Suiza Foods Corp.* 2,100 68,510
----------
FURNITURE -- 3.0%
Furniture Brands
International, Inc.* 4,200 90,300
----------
HEALTHCARE SERVICES --8.6%
Alternative Living
Services, Inc.* 4,400 114,950
Omnicare, Inc. 2,300 79,494
Quintiles Transnational
Corp.* 1,400 63,350
----------
257,794
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
MEDICAL SUPPLIES &
EQUIPMENT -- 2.3%
STERIS Corp.* 3,000 $ 69,000
----------
OFFICE EQUIPMENT -- 2.6%
Staples, Inc.* 2,400 78,300
----------
PHARMACEUTICALS -- 2.2%
Elan Corp. PLC [ADR]* 950 66,559
----------
RESTAURANTS -- 2.9%
Brinker International,
Inc.* 3,600 87,075
----------
RETAIL & MERCHANDISING -- 5.6%
Costco Companies, Inc.* 1,600 90,800
TJX Companies, Inc. 4,100 77,644
----------
168,444
----------
TELECOMMUNICATIONS -- 7.3%
Ascend Communications,
Inc.* 1,500 72,375
Intermedia
Communications, Inc.* 3,300 61,050
RSL Communications Ltd.
Cl-A* 3,700 83,250
----------
216,675
----------
TOTAL COMMON STOCK
(Cost $2,153,517) 2,380,564
----------
SHORT-TERM INVESTMENTS -- 9.6%
Temporary Investment
Cash Fund 143,019 143,019
Temporary Investment
Fund 143,020 143,020
----------
(Cost $286,039) 286,039
----------
TOTAL INVESTMENTS -- 89.2%
(Cost $2,439,556) 2,666,603
OTHER ASSETS LESS
LIABILITIES -- 10.8% 323,785
----------
NET ASSETS -- 100.0% $2,990,388
==========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
42
<PAGE> 45
ASAF NEUBERGER&BERMAN
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 77.1%
AEROSPACE -- 1.5%
Northrop Grumman Corp. 300 $ 23,925
Raytheon Co. Cl-A 600 33,600
----------
57,525
----------
AIRLINES -- 0.7%
Continental Airlines,
Inc. Cl-B* 700 27,737
----------
AUTOMOTIVE PARTS -- 2.2%
Autozone, Inc.* 400 10,525
Goodyear Tire & Rubber
Co. 500 26,937
Lear Corp.* 600 19,275
LucasVarity PLC [ADR] 900 31,500
----------
88,237
----------
BEVERAGES -- 1.1%
Anheuser-Busch
Companies, Inc. 700 41,606
----------
BROADCASTING -- 0.8%
Scripps, (E.W.) Co. Cl-A 700 30,975
----------
BUILDING MATERIALS -- 0.5%
USG Corp.* 400 19,075
----------
CHEMICALS -- 2.2%
Cabot Corp. 800 22,450
Morton International,
Inc. 900 22,388
Praxair, Inc. 1,000 40,250
----------
85,088
----------
COMPUTER HARDWARE -- 1.6%
Hewlett-Packard Co. 500 30,094
Quantum Corp.* 1,800 31,500
----------
61,594
----------
COMPUTER SERVICES & SOFTWARE -- 1.1%
Computer Associates
International, Inc. 1,100 43,312
----------
CONGLOMERATES -- 0.9%
Philip Morris Companies,
Inc. 700 35,788
----------
CONSUMER PRODUCTS & SERVICES -- 0.8%
Raychem Corp. 1,000 30,563
----------
CONTAINERS & PACKAGING -- 1.6%
Crown Cork & Seal Co.,
Inc. 1,000 31,875
Owens-Illinois, Inc.* 1,000 30,563
----------
62,438
----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 2.0%
Teradyne, Inc.* 500 16,250
Texas Instruments, Inc. 1,000 63,938
----------
80,188
----------
ENTERTAINMENT & LEISURE -- 0.7%
Mirage Resorts, Inc.* 1,600 27,100
----------
ENVIRONMENTAL SERVICES -- 0.7%
Waste Management, Inc. 600 27,075
----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
FINANCIAL -- BANK & TRUST -- 5.9%
Banc One Corp. 1,800 $ 87,975
Chase Manhattan Corp. 1,100 62,494
Countrywide Credit
Industries, Inc. 1,800 77,737
----------
228,206
----------
FINANCIAL SERVICES -- 5.1%
Associates First Capital
Corp. Cl-A 500 35,250
Citigroup, Inc. 800 37,650
Morgan Stanley, Dean
Witter & Co. 400 25,900
SLM Holding Corp 2,500 100,155
----------
198,955
----------
FOOD -- 3.2%
ConAgra, Inc. 2,100 63,919
Nabisco Holdings Corp.
Cl-A 1,600 60,400
----------
124,319
----------
HEALTHCARE SERVICES --1.4%
Tenet Healthcare Corp.* 1,900 53,081
----------
HOTELS & MOTELS -- 1.0%
Host Marriott Corp.* 2,800 40,600
----------
INSURANCE -- 8.7%
Ace, Ltd. 1,200 40,650
Aetna, Inc. 700 52,237
Allstate Corp. 1,100 47,369
AON Corp. 700 43,400
CIGNA Corp. 900 65,644
EXEL Ltd. 700 53,506
Orion Capital Corp. 600 20,513
The Hartford Financial
Services Group, Inc. 300 15,935
----------
339,254
----------
MACHINERY & EQUIPMENT -- 1.3%
McDermott International,
Inc. 1,400 41,038
Smith International,
Inc.* 300 10,781
----------
51,819
----------
MEDICAL SUPPLIES & EQUIPMENT -- 1.7%
Baxter International,
Inc. 1,100 65,931
----------
METALS & MINING -- 0.7%
AK Steel Holding Corp. 1,500 25,969
----------
OFFICE EQUIPMENT -- 1.2%
Xerox Corp. 500 48,438
----------
OIL & GAS -- 3.8%
Chevron Corp. 500 40,750
Coastal Corp. 400 14,100
Cooper Cameron Corp.* 400 13,900
Noble Affiliates, Inc. 700 22,925
Tosco Corp. 500 14,031
Transocean Offshore,
Inc. 400 14,775
Unocal Corp. 800 27,150
----------
147,631
----------
</TABLE>
43
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 46
ASAF NEUBERGER&BERMAN
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 1.9%
Bowater, Inc. 300 $ 12,244
Kimberly-Clark Corp. 1,000 48,250
Mead Corp. 400 12,650
----------
73,144
----------
PHARMACEUTICALS -- 3.0%
ALZA Corp.* 800 38,300
American Home Products
Corp. 800 39,000
Biogen, Inc.* 600 41,700
----------
119,000
----------
PRINTING & PUBLISHING -- 0.5%
New York Times Co. Cl-A 700 19,775
----------
REAL ESTATE -- 0.7%
Indymac Mortgage
Holdings, Inc. [REIT] 2,500 27,344
----------
RESTAURANTS -- 1.9%
McDonald's Corp. 300 20,063
Tricon Global
Restaurants, Inc. 1,200 52,200
----------
72,263
----------
RETAIL & MERCHANDISING -- 2.1%
Harcourt General, Inc. 900 43,819
Meyer, (Fred), Inc.* 700 37,319
----------
81,138
----------
SEMICONDUCTORS -- 0.7%
Motorola, Inc. 500 26,000
----------
TELECOMMUNICATIONS -- 7.2%
Bell Atlantic Corp. 1,000 53,125
Loral Space &
Communications Corp.* 1,700 32,194
MCI WorldCom, Inc.* 1,400 77,350
McLeodUSA, Inc. Cl-A* 400 14,625
NEXTLINK Communications,
Inc. Cl-A* 300 7,688
SBC Communications, Inc. 1,300 60,206
Williams Companies, Inc. 1,300 35,669
----------
280,857
----------
UTILITIES -- 6.7%
Edison International Co. 1,200 31,650
GPU, Inc. 400 17,250
Illinova Corp. 1,500 37,969
K N Energy, Inc. 200 9,937
Niagara Mohawk Power
Corp.* 3,500 51,187
PG&E Corp. 900 27,394
Texas Utilities Co. 1,200 52,500
Unicom Corp. 900 33,919
----------
261,806
----------
TOTAL COMMON STOCK
(Cost $2,923,270) 3,003,831
----------
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 10.3%
Federal Home Loan Mtge.
Corp. Disc. Notes
5.11%, 11/12/98
(Cost $399,375) $ 400 $ 399,375
----------
SHARES
-------
SHORT-TERM INVESTMENTS -- 9.4%
Temporary Investment
Cash Fund 182,803 182,803
Temporary Investment
Fund 182,801 182,801
----------
(Cost $365,604) 365,604
----------
TOTAL INVESTMENTS -- 96.8%
(Cost $3,688,249) 3,768,810
OTHER ASSETS LESS
LIABILITIES -- 3.2% 125,740
----------
NET ASSETS -- 100.0% $3,894,550
==========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
DEFINITION OF ABBREVIATIONS
-------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED THROUGHOUT THE SCHEDULES OF INVESTMENTS:
SECURITY DESCRIPTIONS:
<TABLE>
<S> <C> <C>
ADR -- American Depositary Receipt
CVT -- Convertible Security
GDR -- Global Depositary Receipt
PIK -- Payment in Kind 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
DKK -- Denmark/Danish Krone
ESP -- Spain/Spanish Peseta
FIM -- Finland/Finnish Markka
FRF -- France/French Franc
GBP -- United Kingdom/British Pound
HKD -- Hong Kong/Hong Kong Dollar
JPY -- Japan/Japanese Yen
NLG -- Netherlands/Netherland Guilder
NOK -- Norway/Norwegian Krone
SEK -- Sweden/Swedish Krona
</TABLE>
See Notes to Financial Statements.
44
<PAGE> 47
[This page intentionally left blank.]
45
<PAGE> 48
OCTOBER 31, 1998
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN ASAF
SMALL SMALL PRICE SMALL CENTURY STRATEGIC 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) $3,975,172 $10,396,617 $41,176,264 $21,496,816 $46,863,279
Cash 1,496,718 -- -- -- --
Foreign Currency -- -- -- -- --
Receivable For:
Securities Sold 7,796 20,260 -- -- 62,119
Dividends and Interest 8,023 175 22,367 113,391 875,333
Fund Shares Sold 30,638 260,671 877,382 377,880 983,070
Unrealized Appreciation on
Foreign Currency Exchange
Contracts -- -- -- -- --
Receivable from Investment
Manager 12,349 19,086 16,714 11,507 35,613
Deferred Organization Costs 51,709 51,709 51,709 51,709 51,709
Prepaid Expenses 22,616 21,955 27,361 23,833 20,950
---------- ----------- ----------- ----------- -----------
Total Assets 5,605,021 10,770,473 42,171,797 22,075,136 48,892,073
---------- ----------- ----------- ----------- -----------
LIABILITIES:
Cash Overdraft -- 349 -- -- 143,136
Payable to Investment Manager -- -- -- -- --
Unrealized Depreciation on
Foreign Currency Exchange
Contracts 7 -- -- -- --
Payable For:
Securities Purchased -- 50,669 934,694 -- 2,819,113
Fund Shares Redeemed 5,519 186 106,409 2,587 180,207
Distribution Fees 6,742 11,094 44,655 25,025 56,102
Accrued Expenses and Other
Liabilities 43,876 47,075 81,185 50,583 85,113
---------- ----------- ----------- ----------- -----------
Total Liabilities 56,144 109,373 1,166,943 78,195 3,283,671
---------- ----------- ----------- ----------- -----------
NET ASSETS $5,548,877 $10,661,100 $41,004,854 $21,996,941 $45,608,402
========== =========== =========== =========== ===========
COMPONENTS OF NET ASSETS
Capital Stock $ 539 $ 1,176 $ 4,654 $ 2,024 $ 4,860
Additional Paid-In Capital 5,805,051 11,472,082 46,905,426 21,723,747 48,605,814
Undistributed Net Investment Income -- -- -- 46,132 --
Accumulated Net Realized Gain
(Loss) on Investments (191,346) (860,753) (373,287) (1,208,862) (21,802)
Net Unrealized Appreciation
(Depreciation) on Investments (65,367) 48,595 (5,531,939) 1,433,900 (2,980,470)
---------- ----------- ----------- ----------- -----------
NET ASSETS $5,548,877 $10,661,100 $41,004,854 $21,996,941 $45,608,402
========== =========== =========== =========== ===========
(A) Investments at Cost $4,040,674 $10,348,022 $46,708,203 $20,062,916 $49,843,749
========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
46
<PAGE> 49
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE ASAF AMERICAN ASAF
SMALL SMALL PRICE SMALL CENTURY STRATEGIC 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 $ 885,530 $1,801,455 $ 7,154,998 $3,359,381 $ 6,978,841
---------- ---------- ----------- ---------- -----------
Shares Outstanding 86,245 197,843 808,458 308,536 743,839
---------- ---------- ----------- ---------- -----------
Net Asset Value and
Redemption Price
Per Share $ 10.27 $ 9.11 $ 8.85 $ 10.89 $ 9.38
========== ========== =========== ========== ===========
Divided by
(1 - Maximum
Sales Charge) 95% 95% 95% 95% 95 3/4%
---------- ---------- ----------- ---------- -----------
Offering Price
Per Share* $ 10.81 $ 9.59 $ 9.32 $ 11.46 $ 9.80
========== ========== =========== ========== ===========
Class B: Net Assets $1,387,391 $2,685,125 $13,184,276 $8,272,089 $20,494,733
---------- ---------- ----------- ---------- -----------
Shares Outstanding 135,615 296,943 1,497,904 761,455 2,183,386
---------- ---------- ----------- ---------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 10.23 $ 9.04 $ 8.80 $ 10.86 $ 9.39
========== ========== =========== ========== ===========
Class C: Net Assets $ 871,996 $2,089,816 $ 8,297,580 $3,202,083 $ 5,732,235
---------- ---------- ----------- ---------- -----------
Shares Outstanding 85,342 230,681 942,398 294,663 610,846
---------- ---------- ----------- ---------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 10.22 $ 9.06 $ 8.80 $ 10.87 $ 9.38
========== ========== =========== ========== ===========
Class X: Net Assets $2,403,960 $4,084,704 $12,368,000 $7,163,388 $12,402,593
---------- ---------- ----------- ---------- -----------
Shares Outstanding 235,388 450,857 1,405,649 660,064 1,321,511
---------- ---------- ----------- ---------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 10.21 $ 9.06 $ 8.80 $ 10.85 $ 9.39
========== ========== =========== ========== ===========
</TABLE>
* On sales of $50,000 or more, the offering price of Class A shares is reduced.
See Notes to Financial Statements.
47
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 50
OCTOBER 31, 1998
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
ROBERTSON ASAF LORD ASAF NEUBERGER& NEUBERGER&
STEPHENS ABBETT ASAF JANUS MARSICO BERMAN BERMAN
VALUE + GROWTH AND OVERSEAS CAPITAL MID-CAP MID-CAP
GROWTH INCOME GROWTH GROWTH GROWTH VALUE
FUND FUND FUND FUND FUND FUND
----------- ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in Securities at Value
(A) $19,944,749 $33,640,141 $43,671,595 $43,827,625 $2,666,603 $3,768,810
Cash -- -- 91,209 -- -- 13,959
Foreign Currency -- -- 57 -- -- --
Receivable For:
Securities Sold 99,032 28,667 391,321 591,934 -- 10,365
Dividends and Interest 5,393 57,313 27,555 26,894 652 1,724
Fund Shares Sold 229,362 382,252 1,436,400 3,402,781 328,372 441,666
Unrealized Appreciation on Foreign
Currency Exchange Contracts -- -- 98,853 -- -- --
Receivable from Investment Manager 14,892 13,126 30,236 -- -- --
Deferred Organization Costs -- -- -- -- -- --
Prepaid Expenses 30,602 28,903 32,757 78,959 34,487 35,519
----------- ----------- ----------- ----------- ---------- ----------
Total Assets 20,324,030 34,150,402 45,779,983 47,928,193 3,030,114 4,272,043
----------- ----------- ----------- ----------- ---------- ----------
LIABILITIES:
Cash Overdraft 150,397 -- -- -- -- --
Payable to Investment Manager -- -- -- 5,150 714 1,948
Unrealized Depreciation on Foreign
Currency Exchange Contracts -- -- 412,282 -- -- --
Payable For:
Securities Purchased 322,271 1,427,606 173,226 5,687,129 23,389 359,490
Fund Shares Redeemed 107,557 6,911 117,182 343,469 -- --
Distribution Fees 23,776 36,587 45,737 30,643 1,640 2,249
Accrued Expenses and Other
Liabilities 48,907 28,070 74,538 73,234 13,983 13,806
----------- ----------- ----------- ----------- ---------- ----------
Total Liabilities 652,908 1,499,174 822,965 6,139,625 39,726 377,493
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS $19,671,122 $32,651,228 $44,957,018 $41,788,568 $2,990,388 $3,894,550
=========== =========== =========== =========== ========== ==========
COMPONENTS OF NET ASSETS
Capital Stock $ 1,887 $ 3,103 $ 4,274 $ 4,131 $ 254 $ 381
Additional Paid-In Capital 20,562,552 32,882,932 46,340,319 40,534,338 2,670,464 3,810,659
Undistributed Net Investment Income -- 16,307 -- 14,303 -- 1,431
Accumulated Net Realized Gain (Loss) on
Investments (2,156,987) (1,190,045) (2,527,854) (949,883) 92,623 1,518
Net Unrealized Appreciation
(Depreciation) on Investments 1,263,670 938,931 1,140,279 2,185,679 227,047 80,561
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS $19,671,122 $32,651,228 $44,957,018 $41,788,568 $2,990,388 $3,894,550
=========== =========== =========== =========== ========== ==========
(A) Investments at Cost $18,681,079 $32,701,210 $42,217,834 $41,641,946 $2,439,556 $3,688,249
=========== =========== =========== =========== ========== ==========
</TABLE>
See Notes to Financial Statements.
48
<PAGE> 51
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
ROBERTSON ASAF LORD ASAF NEUBERGER& NEUBERGER&
STEPHENS ABBETT ASAF JANUS MARSICO BERMAN BERMAN
VALUE + GROWTH AND OVERSEAS CAPITAL MID-CAP MID-CAP
GROWTH INCOME GROWTH GROWTH GROWTH VALUE
FUND FUND FUND FUND FUND FUND
---------- ----------- ----------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE:
Class A: Net Assets $2,690,074 $5,572,270 $ 8,812,591 $ 7,036,624 $587,459 $ 716,522
---------- ----------- ----------- ----------- -------- ----------
Shares Outstanding 257,568 529,739 835,097 694,975 49,762 70,023
---------- ----------- ----------- ----------- -------- ----------
Net Asset Value and
Redemption Price
Per Share $ 10.44 $ 10.52 $ 10.55 $ 10.13 $ 11.81 $ 10.23
========== =========== =========== =========== ======== ==========
Divided by
(1 - Maximum
Sales Charge) 95% 95% 95% 95% 95% 95%
---------- ----------- ----------- ----------- -------- ----------
Offering Price
Per Share* $ 10.99 $ 11.07 $ 11.11 $ 10.66 $ 12.43 $ 10.77
========== =========== =========== =========== ======== ==========
Class B: Net Assets $7,468,028 $10,710,275 $15,338,901 $17,994,036 $991,231 $1,885,549
---------- ----------- ----------- ----------- -------- ----------
Shares Outstanding 715,912 1,017,238 1,459,790 1,778,634 84,106 184,421
---------- ----------- ----------- ----------- -------- ----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 10.43 $ 10.53 $ 10.51 $ 10.12 $ 11.79 $ 10.22
========== =========== =========== =========== ======== ==========
Class C: Net Assets $2,634,489 $5,018,776 $ 9,579,952 $11,012,325 $903,060 $ 997,368
---------- ----------- ----------- ----------- -------- ----------
Shares Outstanding 253,397 477,471 910,654 1,089,030 76,609 97,591
---------- ----------- ----------- ----------- -------- ----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 10.40 $ 10.51 $ 10.52 $ 10.11 $ 11.79 $ 10.22
========== =========== =========== =========== ======== ==========
Class X: Net Assets $6,878,531 $11,349,907 $11,225,574 $ 5,745,583 $508,638 $ 295,111
---------- ----------- ----------- ----------- -------- ----------
Shares Outstanding 660,802 1,079,046 1,069,006 568,365 43,133 28,876
---------- ----------- ----------- ----------- -------- ----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 10.41 $ 10.52 $ 10.50 $ 10.11 $ 11.79 $ 10.22
========== =========== =========== =========== ======== ==========
</TABLE>
* On sales of $50,000 or more, the offering price of Class A shares is reduced.
See Notes to Financial Statements.
49
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 52
OCTOBER 31, 1998
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF ASAF ASAF
T. ROWE PRICE JANUS INVESCO TOTAL JPM
INTERNATIONAL CAPITAL EQUITY RETURN MONEY
EQUITY 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 (A) $12,386,037 $139,512,761 $53,634,206 $44,428,282 $43,343,103
Receivable for Investments Sold in
Corresponding Portfolios of American Skandia
Master Trust 35,992 189,274 44,511 142,182 973,095
Receivable for Fund Shares Sold 105,054 4,167,035 1,078,236 2,072,663 720,436
Receivable from Investment Manager 32,150 76,877 42,554 29,818 28,504
Deferred Organization Costs 51,650 51,651 51,652 51,651 51,650
Prepaid Expenses 19,884 24,269 21,553 21,466 21,507
----------- ------------ ----------- ----------- -----------
Total Assets 12,630,767 144,021,867 54,872,712 46,746,062 45,138,295
----------- ------------ ----------- ----------- -----------
LIABILITIES:
Payable for Investments Purchased in
Corresponding Portfolios of American Skandia
Master Trust 105,054 4,167,035 1,078,236 2,072,663 720,436
Payable For:
Fund Shares Redeemed 35,992 189,274 44,511 142,182 973,095
Distribution Fees 14,712 147,089 61,480 46,079 52,444
Accrued Expenses and Other Liabilities 46,291 93,360 74,309 44,932 38,265
Accrued Dividends -- -- -- 144,004 --
----------- ------------ ----------- ----------- -----------
Total Liabilities 202,049 4,596,758 1,258,536 2,449,860 1,784,240
----------- ------------ ----------- ----------- -----------
NET ASSETS $12,428,718 $139,425,109 $53,614,176 $44,296,202 $43,354,055
=========== ============ =========== =========== ===========
COMPONENTS OF NET ASSETS
Capital Stock $ 1,295 $ 10,628 $ 4,556 $ 3,827 $ 43,355
Additional Paid-In Capital 12,538,472 130,168,687 51,897,732 43,673,920 43,311,366
Undistributed Net Investment Income -- -- 192,820 -- --
Accumulated Net Realized Gain (Loss) on
Investments (71,356) (4,984,010) (530,360) 371,332 (666)
Net Unrealized Appreciation (Depreciation) on
Investments (39,693) 14,229,804 2,049,428 247,123 --
----------- ------------ ----------- ----------- -----------
NET ASSETS $12,428,718 $139,425,109 $53,614,176 $44,296,202 $43,354,055
=========== ============ =========== =========== ===========
(A) Investments at Cost $12,425,730 $125,282,957 $51,584,778 $44,181,159 $43,343,103
=========== ============ =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
50
<PAGE> 53
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF ASAF ASAF
T. ROWE PRICE JANUS INVESCO TOTAL JPM
INTERNATIONAL CAPITAL EQUITY RETURN MONEY
EQUITY GROWTH INCOME BOND MARKET
FUND FUND FUND FUND FUND
------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE:
Class A: Net Assets $1,684,636 $24,557,550 $8,911,279 $6,034,304 $ 7,371,775
---------- ----------- ----------- ----------- -----------
Shares Outstanding 179,443 1,704,063 758,150 559,198 7,371,833
---------- ----------- ----------- ----------- -----------
Net Asset Value and Redemption Price
Per Share $ 9.39 $ 14.41 $ 11.75 $ 10.79 $ 1.00
========== =========== =========== =========== ===========
Divided by
(1 -- Maximum
Sales Charge) 95% 95% 95% 95 3/4% 100%
---------- ----------- ----------- ----------- -----------
Offering Price
Per Share* $ 9.88 $ 15.17 $ 12.37 $ 11.27 $ 1.00
========== =========== =========== =========== ===========
Class B: Net Assets $3,317,444 $56,582,033 $18,045,555 $17,821,072 $16,553,642
---------- ----------- ----------- ----------- -----------
Shares Outstanding 346,037 4,395,488 1,533,134 1,669,222 16,553,845
---------- ----------- ----------- ----------- -----------
Net Asset Value, Offering and
Redemption Price Per Share $ 9.59 $ 12.87 $ 11.77 $ 10.68 $ 1.00
========== =========== =========== =========== ===========
Class C: Net Assets $2,282,265 $21,710,176 $8,361,589 $8,743,037 $ 6,895,453
---------- ----------- ----------- ----------- -----------
Shares Outstanding 238,419 1,689,074 710,447 819,152 6,895,497
---------- ----------- ----------- ----------- -----------
Net Asset Value, Offering and
Redemption Price Per Share $ 9.57 $ 12.85 $ 11.77 $ 10.67 $ 1.00
========== =========== =========== =========== ===========
Class X: Net Assets $5,144,373 $36,575,350 $18,295,753 $11,697,789 $12,533,185
---------- ----------- ----------- ----------- -----------
Shares Outstanding 535,475 2,839,433 1,555,452 1,094,712 12,533,546
---------- ----------- ----------- ----------- -----------
Net Asset Value, Offering and
Redemption Price Per Share $ 9.61 $ 12.88 $ 11.76 $ 10.69 $ 1.00
========== =========== =========== =========== ===========
</TABLE>
* The offering price of Class A shares is reduced on sales of $50,000 or more,
with the exception of the Money Market Fund.
See Notes to Financial Statements.
51
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 54
FOR THE YEAR ENDED OCTOBER 31, 1998
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS ASAF ASAF ASAF
INTERNATIONAL FOUNDERS T. ROWE AMERICAN ASAF
SMALL SMALL PRICE SMALL CENTURY STRATEGIC FEDERATED
CAPITALIZATION CAPITALIZATION COMPANY VALUE BALANCED HIGH YIELD BOND
FUND FUND FUND FUND FUND
-------------- -------------- ------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 36,357 $ 48,863 $ 132,607 $ 229,222 $ 1,877,965
Dividends 23,666 2,148 275,526 32,581 20,247
Foreign Taxes Withheld (1,991) -- (170) -- --
--------- --------- ----------- ----------- -----------
Total Investment Income 58,032 51,011 407,963 261,803 1,898,212
--------- --------- ----------- ----------- -----------
EXPENSES:
Advisory Fees 34,725 46,399 210,033 81,420 148,821
Shareholder Servicing Fees 107,613 119,116 212,901 117,186 148,079
Administration and Accounting
Fees 53,627 53,627 53,627 53,627 58,252
Custodian Fees 20,175 15,000 53,977 15,555 9,300
Distribution Fees -- Class A 2,442 5,113 17,837 7,594 15,554
Distribution Fees -- Class B 8,755 14,241 71,355 30,662 92,017
Distribution Fees -- Class C 4,773 7,496 34,459 14,102 29,755
Distribution Fees -- Class X 13,156 19,591 68,546 30,515 59,722
Professional Fees 3,623 5,963 23,536 8,063 23,093
Organization Costs 12,905 12,905 12,905 12,905 12,905
Directors' Fees 1,172 1,916 7,778 3,112 7,404
Registration Fees 35,197 39,127 53,772 42,516 57,817
Miscellaneous Expenses 5,092 2,892 3,426 406 34,279
--------- --------- ----------- ----------- -----------
Total Expenses 303,255 343,386 824,152 417,663 696,998
Less: Reimbursement of
Expenses by
Investment Manager (223,621) (235,079) (369,413) (235,278) (287,349)
Waiver of fees by
Investment Manager -- -- -- -- --
--------- --------- ----------- ----------- -----------
Net Expenses 79,634 108,307 454,739 182,385 409,649
--------- --------- ----------- ----------- -----------
Net Investment Income (Loss) (21,602) (57,296) (46,776) 79,418 1,488,563
--------- --------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on:
Securities (191,059) (860,753) (126,469) (1,207,852) (17,619)
Futures Contracts -- -- (246,781) -- --
Foreign Currency Transactions (12,031) -- (3) -- --
--------- --------- ----------- ----------- -----------
Net Realized Gain (Loss) (203,090) (860,753) (373,253) (1,207,852) (17,619)
--------- --------- ----------- ----------- -----------
Net Change in Unrealized
Appreciation (Depreciation)
on:
Securities (55,420) 50,611 (5,500,322) 1,441,116 (2,955,623)
Translation of Assets and
Liabilities Denominated in
Foreign Currencies 267 -- -- -- --
--------- --------- ----------- ----------- -----------
Net Change in Unrealized
Appreciation (Depreciation) (55,153) 50,611 (5,500,322) 1,441,116 (2,955,623)
--------- --------- ----------- ----------- -----------
Net Gain (Loss) on Investments (258,243) (810,142) (5,873,575) 233,264 (2,973,242)
--------- --------- ----------- ----------- -----------
Net Increase (Decrease) in Net
Assets Resulting from
Operations $(279,845) $(867,438) $(5,920,351) $ 312,682 $(1,484,679)
========= ========= =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
52
<PAGE> 55
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF ASAF
ROBERTSON LORD ASAF ASAF NEUBERGER& NEUBERGER&
STEPHENS ABBETT JANUS MARSICO BERMAN BERMAN
VALUE + GROWTH AND OVERSEAS CAPITAL MID-CAP MID-CAP
GROWTH INCOME GROWTH GROWTH GROWTH VALUE
FUND(1) FUND(1) FUND(1) FUND(2) FUND(2) FUND(2)
----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 21,194 $ 40,946 $ 193,330 $ 80,175 $ 3,155 $ 7,294
Dividends 33,899 217,853 104,170 28,675 -- 770
Foreign Taxes Withheld -- (1,981) (10,337) -- -- --
----------- ----------- ----------- ---------- -------- --------
Total Investment Income 55,093 256,818 287,163 108,850 3,155 8,064
----------- ----------- ----------- ---------- -------- --------
EXPENSES:
Advisory Fees 97,166 137,118 159,533 43,773 1,920 2,770
Shareholder Servicing Fees 109,476 114,715 115,377 25,000 16,000 16,000
Administration and Accounting Fees 27,904 27,951 27,858 4,377 213 308
Custodian Fees 14,000 16,400 110,000 7,500 500 500
Distribution Fees -- Class A 5,330 9,519 12,605 3,943 140 292
Distribution Fees -- Class B 31,707 37,694 42,347 16,721 630 1,188
Distribution Fees -- Class C 10,026 16,206 27,801 13,826 847 1,063
Distribution Fees -- Class X 28,667 41,388 37,587 5,341 378 243
Professional Fees 6,572 9,251 10,581 1,860 86 125
Organization Costs -- -- -- -- -- --
Directors' Fees 2,500 3,435 3,791 955 50 68
Registration Fees 52,407 57,183 57,930 14,030 11,088 10,920
Miscellaneous Expenses 2,743 2,818 6,257 463 451 451
----------- ----------- ----------- ---------- -------- --------
Total Expenses 388,498 473,678 611,667 137,789 32,303 33,928
Less: Reimbursement of Expenses by
Investment Manager (199,391) (220,329) (265,321) (43,242) (27,642) (27,295)
Waiver of fees by Investment
Manager (8,000) (22,794) (13,294) -- -- --
----------- ----------- ----------- ---------- -------- --------
Net Expenses 181,107 230,555 333,052 94,547 4,661 6,633
----------- ----------- ----------- ---------- -------- --------
Net Investment Income (Loss) (126,014) 26,263 (45,889) 14,303 (1,506) 1,431
----------- ----------- ----------- ---------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) on:
Securities (2,156,987) (1,190,045) (2,527,854) (949,883) 94,129 1,518
Futures Contracts -- -- -- -- -- --
Foreign Currency Transactions -- -- (108,614) -- -- --
----------- ----------- ----------- ---------- -------- --------
Net Realized Gain (Loss) (2,156,987) (1,190,045) (2,636,468) (949,883) 94,129 1,518
----------- ----------- ----------- ---------- -------- --------
Net Change in Unrealized Appreciation
(Depreciation) on:
Securities 1,263,670 938,931 1,453,761 2,185,679 227,047 80,561
Translation of Assets and Liabilities
Denominated in Foreign Currencies -- -- (313,482) -- -- --
----------- ----------- ----------- ---------- -------- --------
Net Change in Unrealized Appreciation
(Depreciation) 1,263,670 938,931 1,140,279 2,185,679 227,047 80,561
----------- ----------- ----------- ---------- -------- --------
Net Gain (Loss) on Investments (893,317) (251,114) (1,496,189) 1,235,796 321,176 82,079
----------- ----------- ----------- ---------- -------- --------
Net Increase (Decrease) in Net Assets
Resulting from Operations $(1,019,331) $ (224,851) $(1,542,078) $1,250,099 $319,670 $ 83,510
=========== =========== =========== ========== ======== ========
</TABLE>
(1) Commenced operations on December 31, 1997.
(2) Commenced operations on August 19, 1998.
See Notes to Financial Statements.
53
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 56
FOR THE YEAR ENDED OCTOBER 31, 1998
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF ASAF ASAF
T. ROWE PRICE JANUS INVESCO TOTAL JPM
INTERNATIONAL CAPITAL EQUITY RETURN MONEY
EQUITY GROWTH INCOME BOND MARKET
FUND FUND FUND FUND FUND
------------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Investment Income from Corresponding Portfolios of
American Skandia Master Trust:
Interest $ 25,617 $ 543,389 $ 499,625 $ 862,174 $ 807,831
Dividends 144,816 196,650 354,258 -- --
Foreign Taxes Withheld (24,464) (1,464) (1,749) -- --
--------- ----------- ---------- ---------- ---------
Total Investment Income 145,969 738,575 852,134 862,174 807,831
Expenses from Corresponding Portfolios of
American Skandia Master Trust (194,777) (644,026) (287,544) (145,115) (106,649)
--------- ----------- ---------- ---------- ---------
Net Investment Income (Loss) from
Corresponding Portfolios of American Skandia
Master Trust (48,808) 94,549 564,590 717,059 701,182
--------- ----------- ---------- ---------- ---------
EXPENSES:
Shareholder Servicing Fees 136,360 268,483 185,866 114,400 116,419
Administration and Accounting Fees 28,502 43,001 38,501 31,002 4,991
Distribution Fees -- Class A 5,704 43,314 20,818 8,165 13,429
Distribution Fees -- Class B 18,156 191,372 86,453 47,166 40,013
Distribution Fees -- Class C 14,962 72,404 36,380 32,825 23,066
Distribution Fees -- Class X 30,723 157,105 92,482 43,683 59,705
Professional Fees 2,533 19,944 12,324 5,539 4,896
Organization Costs 12,199 12,199 12,199 12,199 12,199
Directors' Fees 2,852 16,474 9,177 4,456 4,754
Registration Fees 39,146 83,109 59,086 48,706 52,446
Miscellaneous Expenses 79 1,490 1,231 591 317
--------- ----------- ---------- ---------- ---------
Total Expenses 291,216 908,895 554,517 348,732 332,235
--------- ----------- ---------- ---------- ---------
Less: Reimbursement of Expenses by Investment
Manager (296,056) (479,715) (336,129) (235,704) (153,029)
--------- ----------- ---------- ---------- ---------
Net Investment Income (Loss) (43,968) (334,631) 346,202 604,031 521,976
--------- ----------- ---------- ---------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
FROM CORRESPONDING PORTFOLIOS OF AMERICAN SKANDIA
MASTER TRUST:
Net Realized Gain (Loss) on:
Securities (71,356) (4,945,203) (517,156) 371,331 (666)
Futures Contracts -- -- -- -- --
Foreign Currency Transactions 3,564 (333) -- -- --
--------- ----------- ---------- ---------- ---------
Net Realized Gain (Loss) (67,792) (4,945,536) (517,156) 371,331 (666)
--------- ----------- ---------- ---------- ---------
Net Change in Unrealized Appreciation
(Depreciation) on:
Securities 19,113 14,298,450 2,038,173 235,283 --
Translation of Assets and Liabilities
Denominated in Foreign Currencies 6,665 (46) -- -- --
--------- ----------- ---------- ---------- ---------
Net Change in Unrealized Appreciation
(Depreciation) 25,778 14,298,404 2,038,173 235,283 --
--------- ----------- ---------- ---------- ---------
Net Gain (Loss) on Investments (42,014) 9,352,868 1,521,017 606,614 (666)
--------- ----------- ---------- ---------- ---------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ (85,982) $ 9,018,237 $1,867,219 $1,210,645 $ 521,310
========= =========== ========== ========== =========
</TABLE>
See Notes to Financial Statements.
54
<PAGE> 57
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF FOUNDERS
INTERNATIONAL ASAF FOUNDERS ASAF T. ROWE
SMALL SMALL PRICE SMALL
CAPITALIZATION CAPITALIZATION COMPANY VALUE
FUND FUND FUND
----------------------------- ----------------------------- -----------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997(1) 1998 1997(1) 1998 1997(1)
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (21,602) $ 819 $ (57,296) $ (1,017) $ (46,776) $ 422
Net Realized Gain (Loss) on
Investments (203,090) (287) (860,753) -- (373,253) (37)
Net Change in Unrealized
Appreciation (Depreciation) on
Investments (55,153) (10,214) 50,611 (2,016) (5,500,322) (31,617)
---------- -------- ----------- -------- ----------- ----------
Net Increase (Decrease) in Net
Assets Resulting from Operations (279,845) (9,682) (867,438) (3,033) (5,920,351) (31,232)
---------- -------- ----------- -------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A (452) -- -- -- (181) --
Class B (125) -- -- -- (114) --
Class C (62) -- -- -- (35) --
Class X (180) -- -- -- (92) --
In Excess of Net Investment
Income:
Class A (74) -- -- -- (4,193) --
Class B (20) -- -- -- (2,624) --
Class C (10) -- -- -- (814) --
Class X (29) -- -- -- (2,136) --
From Net Realized Gains:
Class A -- -- -- -- -- --
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class X -- -- -- -- -- --
---------- -------- ----------- -------- ----------- ----------
Total Distributions (952) -- -- -- (10,189) --
---------- -------- ----------- -------- ----------- ----------
CAPITAL SHARE TRANSACTIONS (NOTE
4):
Net Increase in Net Assets from
Capital Share Transactions 5,208,868 620,488 10,639,455 882,116 44,422,288 2,534,338
---------- -------- ----------- -------- ----------- ----------
Net Increase in Net Assets 4,928,071 610,806 9,772,017 879,083 38,491,748 2,503,106
NET ASSETS:
Beginning of Period 620,806 10,000 889,083 10,000 2,513,106 10,000
---------- -------- ----------- -------- ----------- ----------
End of Period $5,548,877 $620,806 $10,661,100 $889,083 $41,004,854 $2,513,106
========== ======== =========== ======== =========== ==========
</TABLE>
(1) Commenced operations on July 28, 1997.
See Notes to Financial Statements.
55
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 58
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF
ASAF LORD
ROBERTSON ABBETT
ASAF AMERICAN STEPHENS GROWTH ASAF JANUS
CENTURY ASAF FEDERATED VALUE + AND OVERSEAS
STRATEGIC BALANCED HIGH YIELD GROWTH INCOME GROWTH
FUND BOND FUND FUND FUND FUND
-------------------------- ----------------------------- ----------- ----------- -----------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997(1) 1998 1997(1) 1998(2) 1998(2) 1998(2)
----------- ------------ -------------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income
(Loss) $ 79,418 $ 2,252 $ 1,488,563 $ 5,911 $ (126,014) $ 26,263 $ (45,889)
Net Realized Gain (Loss)
on Investments (1,207,852) (1,010) (17,619) (4,183) (2,156,987) (1,190,045) (2,636,468)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 1,441,116 (7,216) (2,955,623) (24,847) 1,263,670 938,931 1,140,279
----------- ---------- ----------- ---------- ----------- ----------- -----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 312,682 (5,974) (1,484,679) (23,119) (1,019,331) (224,851) (1,542,078)
----------- ---------- ----------- ---------- ----------- ----------- -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From Net Investment
Income:
Class A (11,493) -- (230,890) (3,360) -- (6,881) --
Class B (9,726) -- (635,141) (1,321) -- (1,202) --
Class C (4,525) -- (207,080) (470) -- (484) --
Class X (9,794) -- (415,452) (760) -- (1,389) --
In Excess of Net
Investment Income:
Class A -- -- -- -- -- -- --
Class B -- -- -- -- -- -- --
Class C -- -- -- -- -- -- --
Class X -- -- -- -- -- -- --
From Net Realized Gains:
Class A -- -- -- -- -- -- --
Class B -- -- -- -- -- -- --
Class C -- -- -- -- -- -- --
Class X -- -- -- -- -- -- --
----------- ---------- ----------- ---------- ----------- ----------- -----------
Total Distributions (35,538) -- (1,488,563) (5,911) -- (9,956) --
----------- ---------- ----------- ---------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net
Assets from Capital
Share Transactions 20,468,469 1,247,302 44,745,185 3,855,489 20,690,453 32,886,035 46,499,096
----------- ---------- ----------- ---------- ----------- ----------- -----------
Net Increase in Net Assets 20,745,613 1,241,328 41,771,943 3,826,459 19,671,122 32,651,228 44,957,018
NET ASSETS:
Beginning of Period 1,251,328 10,000 3,836,459 10,000 -- -- --
----------- ---------- ----------- ---------- ----------- ----------- -----------
End of Period $21,996,941 $1,251,328 $45,608,402 $3,836,459 $19,671,122 $32,651,228 $44,957,018
=========== ========== =========== ========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
56
<PAGE> 59
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF
ASAF NEUBERGER& NEUBERGER&
MARSICO BERMAN BERMAN
CAPITAL MID-CAP MID-CAP ASAF T. ROWE PRICE ASAF JANUS
GROWTH GROWTH VALUE INTERNATIONAL CAPITAL GROWTH
FUND FUND FUND EQUITY FUND FUND
----------- ----------- ----------- -------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998(3) 1998(3) 1998(3) 1998 1997(4) 1998 1997(4)
----------- ----------- ----------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income
(Loss) $ 14,303 $ (1,506) $ 1,431 $ (43,968) $ (282) $ (334,631) $ 7,214
Net Realized Gain (Loss) on
Investments (949,883) 94,129 1,518 (67,792) (583) (4,945,536) (38,807)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 2,185,679 227,047 80,561 25,778 (65,471) 14,298,404 (68,600)
----------- ---------- ---------- ----------- ---------- ------------ ----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 1,250,099 319,670 83,510 (85,982) (66,336) 9,018,237 (100,193)
----------- ---------- ---------- ----------- ---------- ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From Net Investment Income:
Class A -- -- -- -- -- (3,261) --
Class B -- -- -- -- -- (1,754) --
Class C -- -- -- -- -- (551) --
Class X -- -- -- -- -- (1,648) --
In Excess of Net Investment
Income:
Class A -- -- -- -- -- (2,821) --
Class B -- -- -- -- -- (1,518) --
Class C -- -- -- -- -- (476) --
Class X -- -- -- -- -- (1,426) --
From Net Realized Gains:
Class A -- -- -- -- -- -- --
Class B -- -- -- -- -- -- --
Class C -- -- -- -- -- -- --
Class X -- -- -- -- -- -- --
----------- ---------- ---------- ----------- ---------- ------------ ----------
Total Distributions -- -- -- -- -- (13,455) --
----------- ---------- ---------- ----------- ---------- ------------ ----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 40,538,469 2,670,718 3,811,040 10,953,519 1,617,517 126,069,978 4,440,542
----------- ---------- ---------- ----------- ---------- ------------ ----------
Net Increase in Net Assets 41,788,568 2,990,388 3,894,550 10,867,537 1,551,181 135,074,760 4,340,349
NET ASSETS:
Beginning of Period -- -- -- 1,561,181 10,000 4,350,349 10,000
----------- ---------- ---------- ----------- ---------- ------------ ----------
End of Period $41,788,568 $2,990,388 $3,894,550 $12,428,718 $1,561,181 $139,425,109 $4,350,349
=========== ========== ========== =========== ========== ============ ==========
</TABLE>
(1) Commenced operations on July 28, 1997.
(2) Commenced operations on December 31, 1997.
(3) Commenced operations on August 19, 1998.
(4) Commenced operations on June 10, 1997.
See Notes to Financial Statements.
57
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 60
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF INVESCO ASAF TOTAL ASAF JPM
EQUITY INCOME RETURN BOND MONEY MARKET
FUND FUND FUND
-------------------------- -------------------------- --------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997(5) 1998 1997(5) 1998 1997(6)
----------- ------------ ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 346,202 $ 7,857 $ 604,031 $ 3,392 $ 521,976 $ 5,120
Net Realized Gain (Loss) on Investments (517,156) (13,204) 371,331 288 (666) 25
Net Change in Unrealized Appreciation
(Depreciation) on Investments 2,038,173 11,255 235,283 11,840 -- --
----------- ---------- ----------- ---------- ----------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,867,219 5,908 1,210,645 15,520 521,310 5,145
----------- ---------- ----------- ---------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A (38,382) -- (81,710) (136) (105,287) (1,356)
Class B (49,590) -- (203,491) (360) (132,858) (1,080)
Class C (19,657) -- (142,796) (103) (78,804) (908)
Class X (53,610) -- (178,399) (430) (205,027) (1,776)
In Excess of Net Investment Income:
Class A -- -- -- -- -- --
Class B -- -- -- -- -- --
Class C -- -- -- -- -- --
Class X -- -- -- -- -- --
From Net Realized Gains:
Class A -- -- (35) -- (4) --
Class B -- -- (98) -- (10) --
Class C -- -- (43) -- (4) --
Class X -- -- (111) -- (7) --
----------- ---------- ----------- ---------- ----------- ----------
Total Distributions (161,239) -- (606,683) (1,029) (522,001) (5,120)
----------- ---------- ----------- ---------- ----------- ----------
CAPITAL SHARE TRANSACTIONS (NOTE 4):
Net Increase in Net Assets from Capital
Share Transactions 48,599,599 3,292,689 42,508,563 1,159,186 41,796,215 1,548,506
----------- ---------- ----------- ---------- ----------- ----------
Net Increase in Net Assets 50,305,579 3,298,597 43,112,525 1,173,677 41,795,524 1,548,531
NET ASSETS:
Beginning of Period 3,308,597 10,000 1,183,677 10,000 1,558,531 10,000
----------- ---------- ----------- ---------- ----------- ----------
End of Period $53,614,176 $3,308,597 $44,296,202 $1,183,677 $43,354,055 $1,558,531
=========== ========== =========== ========== =========== ==========
</TABLE>
(5) Commenced operations on June 18, 1997.
(6) Commenced operations on June 19, 1997.
See Notes to Financial Statements.
58
<PAGE> 61
[This page intentionally left blank.]
59
<PAGE> 62
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per Share Data (For a Share Outstanding
throughout each period)
<TABLE>
<CAPTION>
Increase (Decrease) from
Investment Operations
Net Asset -----------------------------------------
Year Value Net Net Realized Total from
Ended Beginning Investment & Unrealized Investment
October 31, of Period Income (Loss) Gain (Loss) Operations
----------- --------- ------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
ASAF FOUNDERS INTERNATIONAL SMALL
CAPITALIZATION FUND:
- ------------------------------
- ------------------------------
Class A 1998 $ 9.87 $(0.02) $ 0.45 $ 0.43
1997(1) 10.00 0.05 (0.18) (0.13)
Class B 1998 9.85 (0.08) 0.46 0.38
1997(1) 10.00 0.04 (0.19) (0.15)
Class C 1998 9.86 (0.08) 0.44 0.36
1997(1) 10.00 0.04 (0.18) (0.14)
Class X 1998 9.84 (0.08) 0.45 0.37
1997(1) 10.00 0.04 (0.20) (0.16)
ASAF FOUNDERS SMALL
CAPITALIZATION FUND:
- ------------------------------
- ------------------------------
Class A 1998 $ 9.94 $(0.07) $(0.76) $(0.83)
1997(1) 10.00 (0.03) (0.03) (0.06)
Class B 1998 9.93 (0.12) (0.77) (0.89)
1997(1) 10.00 (0.04) (0.03) (0.07)
Class C 1998 9.94 (0.10) (0.78) (0.88)
1997(1) 10.00 (0.04) (0.02) (0.06)
Class X 1998 9.93 (0.11) (0.76) (0.87)
1997(1) 10.00 (0.04) (0.03) (0.07)
ASAF T. ROWE PRICE SMALL COMPANY
VALUE FUND:
- ------------------------------
- ------------------------------
Class A 1998 $ 10.46 $ 0.04 $(1.62) $(1.58)
1997(1) 10.00 0.02 0.44 0.46
Class B 1998 10.44 (0.02) (1.61) (1.63)
1997(1) 10.00 -- 0.44 0.44
Class C 1998 10.45 (0.02) (1.62) (1.64)
1997(1) 10.00 -- 0.45 0.45
Class X 1998 10.44 (0.02) (1.61) (1.63)
1997(1) 10.00 -- 0.44 0.44
ASAF AMERICAN CENTURY STRATEGIC
BALANCED FUND:
- ------------------------------
- ------------------------------
Class A 1998 $ 9.99 $ 0.15 $ 0.84 $ 0.99
1997(1) 10.00 0.04 (0.05) (0.01)
Class B 1998 9.96 0.09 0.85 0.94
1997(1) 10.00 0.02 (0.06) (0.04)
Class C 1998 9.98 0.09 0.84 0.93
1997(1) 10.00 0.02 (0.04) (0.02)
Class X 1998 9.96 0.09 0.84 0.93
1997(1) 10.00 0.02 (0.06) (0.04)
ASAF FEDERATED HIGH YIELD BOND
FUND:
- ------------------------------
- ------------------------------
Class A 1998 $ 9.93 $ 0.74 $(0.55) $ 0.19
1997(1) 10.00 0.05 (0.07) (0.02)
Class B 1998 9.93 0.69 (0.54) 0.15
1997(1) 10.00 0.04 (0.07) (0.03)
Class C 1998 9.93 0.69 (0.55) 0.14
1997(1) 10.00 0.03 (0.07) (0.04)
Class X 1998 9.93 0.69 (0.54) 0.15
1997(1) 10.00 0.04 (0.07) (0.03)
<CAPTION>
Less Distributions
--------------------------------------
From Net From Net In Excess of
Investment Realized Net Investment
Income Gains Income
---------- -------- --------------
<S> <C> <C> <C>
ASAF FOUNDERS INTERNATIONAL SMALL
CAPITALIZATION FUND:
- ------------------------------
- ------------------------------
Class A $(0.03) $-- $ --
-- -- --
Class B -- -- --
-- -- --
Class C -- -- --
-- -- --
Class X -- -- --
-- -- --
ASAF FOUNDERS SMALL
CAPITALIZATION FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $ --
-- -- --
Class B -- -- --
-- -- --
Class C -- -- --
-- -- --
Class X -- -- --
-- -- --
ASAF T. ROWE PRICE SMALL COMPANY
VALUE FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $(0.03)
-- -- --
Class B -- -- (0.01)
-- -- --
Class C -- -- (0.01)
-- -- --
Class X -- -- (0.01)
-- -- --
ASAF AMERICAN CENTURY STRATEGIC
BALANCED FUND:
- ------------------------------
- ------------------------------
Class A $(0.09) $-- $ --
-- -- --
Class B (0.04) -- --
-- -- --
Class C (0.04) -- --
-- -- --
Class X (0.04) -- --
-- -- --
ASAF FEDERATED HIGH YIELD BOND
FUND:
- ------------------------------
- ------------------------------
Class A $(0.74) $-- $ --
(0.05) -- --
Class B (0.69) -- --
(0.04) -- --
Class C (0.69) -- --
(0.03) -- --
Class X (0.69) -- --
(0.04) -- --
</TABLE>
60
<PAGE> 63
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Supplemental Data Ratios of Expenses
------------------------------------- to Average Net Assets
Net Asset Net Assets at Portfolio -----------------------------------
Total Value Total End of Period Turnover After Expense Before Expense
Distributions End of Period Return(2) (In 000's) Rate Reimbursement(3) Reimbursement(3)
------------- ------------- --------- ------------- --------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$(0.03) $10.27 4.32% $ 886 49% 2.10% 9.20%
-- 9.87 (1.30)% 106 -- 2.10% 136.49%
-- 10.23 3.90% 1,387 49% 2.60% 9.80%
-- 9.85 (1.50)% 230 -- 2.60% 90.64%
-- 10.22 3.69% 872 49% 2.60% 9.72%
-- 9.86 (1.40)% 79 -- 2.60% 55.02%
-- 10.21 3.80% 2,404 49% 2.60% 9.58%
-- 9.84 (1.60)% 206 -- 2.60% 54.45%
$ -- $ 9.11 (8.45)% $ 1,801 94% 1.70% 6.38%
-- 9.94 (0.60)% 193 -- 1.70% 105.48%
-- 9.04 (8.96)% 2,685 94% 2.20% 6.86%
-- 9.93 (0.70)% 353 -- 2.20% 57.99%
-- 9.06 (8.85)% 2,090 94% 2.20% 6.60%
-- 9.94 (0.60)% 74 -- 2.20% 42.48%
-- 9.06 (8.76)% 4,085 94% 2.20% 6.69%
-- 9.93 (0.70)% 270 -- 2.20% 47.29%
$(0.03) $ 8.85 (15.13)% $ 7,155 4% 1.75% 3.51%
-- 10.46 4.60% 383 -- 1.75% 54.47%
(0.01) 8.80 (15.63)% 13,184 4% 2.25% 4.03%
-- 10.44 4.40% 1,155 -- 2.25% 30.14%
(0.01) 8.80 (15.71)% 8,298 4% 2.25% 3.97%
-- 10.45 4.50% 335 -- 2.25% 33.60%
(0.01) 8.80 (15.63)% 12,368 4% 2.25% 4.00%
-- 10.44 4.40% 640 -- 2.25% 22.43%
$(0.09) $10.89 9.93% $ 3,359 93% 1.60% 4.32%
-- 9.99 (0.10)% 257 2% 1.60% 37.87%
(0.04) 10.86 9.45% 8,272 93% 2.10% 4.65%
-- 9.96 (0.40)% 381 2% 2.10% 29.90%
(0.04) 10.87 9.33% 3,202 93% 2.10% 4.77%
-- 9.98 (0.20)% 215 2% 2.10% 38.96%
(0.04) 10.85 9.34% 7,164 93% 2.10% 4.66%
-- 9.96 (0.40)% 398 2% 2.10% 26.66%
$(0.74) $ 9.38 1.67% $ 6,979 22% 1.50% 2.90%
(0.05) 9.93 (0.23)% 2,154 11% 1.50% 30.49%
(0.69) 9.39 1.25% 20,495 22% 2.00% 3.32%
(0.04) 9.93 (0.30)% 920 11% 2.00% 30.22%
(0.69) 9.38 1.26% 5,732 22% 2.00% 3.41%
(0.03) 9.93 (0.36)% 206 11% 2.00% 29.26%
(0.69) 9.39 1.26% 12,402 22% 2.00% 3.33%
(0.04) 9.93 (0.25)% 556 11% 2.00% 30.95%
<CAPTION>
Ratio of Net Investment
Total Income (Loss) to
Distributions Average Net Assets(3)
------------- -----------------------
<S> <C>
$(0.03) (0.28)%
-- 2.03%
-- (0.74)%
-- 1.62%
-- (0.79)%
-- 1.72%
-- (0.76)%
-- 1.58%
$ -- (0.75)%
-- (1.16)%
-- (1.26)%
-- (1.73)%
-- (1.13)%
-- (1.73)%
-- (1.19)%
-- (1.70)%
$(0.03) 0.20%
-- 0.69%
(0.01) (0.30)%
-- 0.17%
(0.01) (0.32)%
-- 0.02%
(0.01) (0.32)%
-- 0.19%
$(0.09) 1.30%
-- 1.56%
(0.04) 0.80%
-- 0.79%
(0.04) 0.79%
-- 0.78%
(0.04) 0.79%
-- 1.07%
$(0.74) 7.42%
(0.05) 4.76%
(0.69) 6.90%
(0.04) 3.15%
(0.69) 6.96%
(0.03) 3.55%
(0.69) 6.96%
(0.04) 3.65%
</TABLE>
(1) Commenced operations on July 28, 1997.
(2) Total return for Class X shares does not reflect the payment of bonus
shares.
(3) Annualized for periods less than one year.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
61
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 64
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per Share Data (For a Share Outstanding
throughout each period)
<TABLE>
<CAPTION>
Increase (Decrease) from
Investment Operations
Net Asset -----------------------------------------
Year Value Net Net Realized Total from
Ended Beginning Investment & Unrealized Investment
October 31, of Period Income (Loss) Gain (Loss) Operations
----------- --------- ------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
ASAF ROBERTSON STEPHENS VALUE +
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1998(4) $ 10.00 $(0.10) $0.54 $0.44
Class B 1998(4) 10.00 (0.14) 0.57 0.43
Class C 1998(4) 10.00 (0.14) 0.54 0.40
Class X 1998(4) 10.00 (0.14) 0.55 0.41
ASAF LORD ABBETT GROWTH AND
INCOME FUND:
- ------------------------------
- ------------------------------
Class A 1998(4) $ 10.00 $ 0.05 $0.50 $0.55
Class B 1998(4) 10.00 0.01 0.52 0.53
Class C 1998(4) 10.00 0.01 0.50 0.51
Class X 1998(4) 10.00 0.01 0.51 0.52
ASAF JANUS OVERSEAS GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1998(4) $ 10.00 $ 0.01 $0.54 $0.55
Class B 1998(4) 10.00 (0.04) 0.55 0.51
Class C 1998(4) 10.00 (0.04) 0.56 0.52
Class X 1998(4) 10.00 (0.04) 0.54 0.50
ASAF MARSICO CAPITAL GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1998(5) $ 10.00 $ 0.01 $0.12 $0.13
Class B 1998(5) 10.00 -- 0.12 0.12
Class C 1998(5) 10.00 -- 0.11 0.11
Class X 1998(5) 10.00 -- 0.11 0.11
ASAF NEUBERGER&BERMAN MID-CAP
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1998(5) $ 10.00 $(0.01) $1.82 $1.81
Class B 1998(5) 10.00 (0.01) 1.80 1.79
Class C 1998(5) 10.00 (0.01) 1.80 1.79
Class X 1998(5) 10.00 (0.01) 1.80 1.79
ASAF NEUBERGER&BERMAN MID-CAP
VALUE FUND:
- ------------------------------
- ------------------------------
Class A 1998(5) $ 10.00 $ 0.02 $0.21 $0.23
Class B 1998(5) 10.00 0.01 0.21 0.22
Class C 1998(5) 10.00 -- 0.22 0.22
Class X 1998(5) 10.00 0.01 0.21 0.22
<CAPTION>
Less Distributions
--------------------------------------
From Net From Net In Excess of
Investment Realized Net Investment
Income Gains Income
---------- -------- --------------
<S> <C> <C> <C>
ASAF ROBERTSON STEPHENS VALUE +
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $--
Class B -- -- --
Class C -- -- --
Class X -- -- --
ASAF LORD ABBETT GROWTH AND
INCOME FUND:
- ------------------------------
- ------------------------------
Class A $(0.03) $-- $--
Class B -- -- --
Class C -- -- --
Class X -- -- --
ASAF JANUS OVERSEAS GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $--
Class B -- -- --
Class C -- -- --
Class X -- -- --
ASAF MARSICO CAPITAL GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $--
Class B -- -- --
Class C -- -- --
Class X -- -- --
ASAF NEUBERGER&BERMAN MID-CAP
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $--
Class B -- -- --
Class C -- -- --
Class X -- -- --
ASAF NEUBERGER&BERMAN MID-CAP
VALUE FUND:
- ------------------------------
- ------------------------------
Class A $ -- $-- $--
Class B -- -- --
Class C -- -- --
Class X -- -- --
</TABLE>
62
<PAGE> 65
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios of Expenses
Supplemental Data to Average Net Assets
------------------------------------- -----------------------------------
Net Asset Net Assets at Portfolio
Total Value Total End of Period Turnover After Expense Before Expense
Distributions End of Period Return(2) (In 000's) Rate Reimbursement(3) Reimbursement(3)
------------- ------------- --------- ------------- --------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$ -- $10.44 4.40% $ 2,690 207% 1.80% 4.29%
-- 10.43 4.30% 7,468 207% 2.30% 4.77%
-- 10.40 4.00% 2,634 207% 2.30% 4.67%
-- 10.41 4.10% 6,879 207% 2.30% 4.77%
$(0.03) $10.52 5.48% $ 5,572 42% 1.60% 3.57%
-- 10.53 5.32% 10,710 42% 2.10% 4.06%
-- 10.51 5.12% 5,019 42% 2.10% 4.01%
-- 10.52 5.22% 11,350 42% 2.10% 3.98%
$ -- $10.55 5.50% $ 8,812 101% 2.10% 4.12%
-- 10.51 5.10% 15,339 101% 2.60% 4.58%
-- 10.52 5.20% 9,580 101% 2.60% 4.58%
-- 10.50 5.00% 11,226 101% 2.60% 4.60%
$ -- $10.13 1.20% $ 7,037 67% 1.75% 2.84%
-- 10.12 1.10% 17,994 67% 2.25% 3.29%
-- 10.11 1.10% 11,012 67% 2.25% 3.44%
-- 10.11 1.10% 5,746 67% 2.25% 3.22%
$ -- $11.81 18.00% $ 587 122% 1.75% 5.66%
-- 11.79 17.80% 991 122% 2.25% 15.98%
-- 11.79 17.90% 903 122% 2.25% 20.25%
-- 11.79 17.90% 509 122% 2.25% 10.43%
$ -- $10.23 2.30% $ 717 3% 1.75% 9.44%
-- 10.22 2.20% 1,886 3% 2.25% 9.10%
-- 10.22 2.20% 997 3% 2.25% 13.91%
-- 10.22 2.20% 295 3% 2.25% 12.90%
<CAPTION>
Ratio of Net Investment
Total Income (Loss) to
Distributions Average Net Assets(3)
------------- -----------------------
<S> <C>
$ -- (1.12)%
-- (1.62)%
-- (1.62)%
-- (1.62)%
$(0.03) 0.62%
-- 0.14%
-- 0.15%
-- 0.17%
$ -- 0.06%
-- (0.44)%
-- (0.45)%
-- (0.41)%
$ -- 0.72%
-- 0.25%
-- 0.24%
-- 0.20%
$ -- (0.52)%
-- (0.78)%
-- (0.72)%
-- (0.67)%
$ -- 0.87%
-- 0.47%
-- 0.26%
-- 0.34%
</TABLE>
(2) Total return for Class X shares does not reflect the payment of bonus
shares.
(3) Annualized for periods less than one year.
(4) Commenced operations on December 31, 1997.
(5) Commenced operations on August 19, 1998.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
63
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 66
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per Share Data (For a Share Outstanding
throughout each period)
<TABLE>
<CAPTION>
Increase (Decrease) from
Investment Operations
Net Asset -----------------------------------------
Year Value Net Net Realized Total from
Ended Beginning Investment & Unrealized Investment
October 31, of Period Income (Loss) Gain (Loss) Operations
----------- --------- ------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
ASAF T. ROWE PRICE
INTERNATIONAL EQUITY FUND:
- --------------------------------
- --------------------------------
Class A 1998 $ 8.93 $(0.02) $ 0.48 $ 0.46
1997(1) 9.74 0.01 (0.82) (0.81)
Class B 1998 9.16 (0.07) 0.50 0.43
1997(1) 10.00 (0.01) (0.83) (0.84)
Class C 1998 9.16 (0.06) 0.47 0.41
1997(1) 10.00 (0.01) (0.83) (0.84)
Class X 1998 9.18 (0.07) 0.50 0.43
1997(1) 10.00 (0.01) (0.81) (0.82)
ASAF JANUS
CAPITAL GROWTH FUND:
- --------------------------------
- --------------------------------
Class A 1998 $ 11.40 $(0.01) $ 3.05 $ 3.04
1997(1) 11.18 0.09 0.13 0.22
Class B 1998 10.19 (0.08) 2.77 2.69
1997(1) 10.00 0.06 0.13 0.19
Class C 1998 10.19 (0.08) 2.75 2.67
1997(1) 10.00 0.05 0.14 0.19
Class X 1998 10.20 (0.09) 2.78 2.69
1997(1) 10.00 0.05 0.15 0.20
ASAF INVESCO
EQUITY INCOME FUND:
- --------------------------------
- --------------------------------
Class A 1998 $ 10.45 $ 0.22 $ 1.20 $ 1.42
1997(1) 9.98 0.14 0.33 0.47
Class B 1998 10.45 0.15 1.24 1.39
1997(1) 10.00 0.10 0.35 0.45
Class C 1998 10.46 0.15 1.23 1.38
1997(1) 10.00 0.10 0.36 0.46
Class X 1998 10.45 0.15 1.23 1.38
1997(1) 10.00 0.11 0.34 0.45
ASAF TOTAL
RETURN BOND FUND:
- --------------------------------
- --------------------------------
Class A 1998 $ 10.28 $ 0.35 $ 0.54 $ 0.89
1997(1) 10.07 0.15 0.09 0.24
Class B 1998 10.16 0.31 0.53 0.84
1997(1) 10.00 0.10 0.09 0.19
Class C 1998 10.16 0.31 0.52 0.83
1997(1) 10.00 0.10 0.09 0.19
Class X 1998 10.17 0.34 0.50 0.84
1997(1) 10.00 0.09 0.10 0.19
ASAF JPM
MONEY MARKET FUND:
- --------------------------------
- --------------------------------
Class A 1998 $ 1.00 $0.039 $ -- $0.039
1997(1) 1.00 0.009 -- 0.009
Class B 1998 1.00 0.033 0.033
1997(1) 1.00 0.007 -- 0.007
Class C 1998 1.00 0.034 0.034
1997(1) 1.00 0.007 -- 0.007
Class X 1998 1.00 0.034 0.034
1997(1) 1.00 0.008 -- 0.008
<CAPTION>
Less Distributions
--------------------------------------
From Net From Net In Excess of
Investment Realized Net Investment
Income Gains Income
---------- -------- --------------
<S> <C> <C> <C>
ASAF T. ROWE PRICE
INTERNATIONAL EQUITY FUND:
- --------------------------------
- --------------------------------
Class A $ -- $-- $ --
-- -- --
Class B -- -- --
-- -- --
Class C -- -- --
-- -- --
Class X -- -- --
-- -- --
ASAF JANUS
CAPITAL GROWTH FUND:
- --------------------------------
- --------------------------------
Class A $ (0.02) $-- $(0.01)
-- -- --
Class B (0.01) -- --
-- -- --
Class C (0.01) -- --
-- -- --
Class X (0.01) -- --
-- -- --
ASAF INVESCO
EQUITY INCOME FUND:
- --------------------------------
- --------------------------------
Class A $ (0.12) $-- $ --
-- -- --
Class B (0.07) -- --
-- -- --
Class C (0.07) -- --
-- -- --
Class X (0.07) -- --
-- -- --
ASAF TOTAL
RETURN BOND FUND:
- --------------------------------
- --------------------------------
Class A $ (0.38) $-- $ --
(0.03) -- --
Class B (0.32) -- --
(0.03) -- --
Class C (0.32) -- --
(0.03) -- --
Class X (0.32) -- --
(0.02) -- --
ASAF JPM
MONEY MARKET FUND:
- --------------------------------
- --------------------------------
Class A $(0.039) $-- $ --
(0.009) -- --
Class B (0.033) -- --
(0.007) -- --
Class C (0.034) -- --
(0.007) -- --
Class X (0.034) -- --
(0.008) -- --
</TABLE>
64
<PAGE> 67
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios of Expenses
Supplemental Data to Average Net Assets*
------------------------- -----------------------------------
Net Asset Net Assets at Ratio of Net Investment
Total Value Total End of Period After Expense Before Expense Income (Loss) to
Distributions End of Period Return(2) (In 000's) Reimbursement(3) Reimbursement(3) Average Net Assets(3)*
------------- ------------- --------- ------------- ---------------- ---------------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
$ -- $ 9.39 5.15% $ 1,685 2.10% 6.06% (0.16)%
-- 8.93 (8.32)% 218 2.10% 51.87% 0.07%
-- 9.59 4.69% 3,318 2.60% 6.50% (0.70)%
-- 9.16 (8.40)% 390 2.60% 38.12% (0.51)%
-- 9.57 4.48% 2,282 2.60% 6.55% (0.58)%
-- 9.16 (8.40)% 198 2.60% 33.95% (0.53)%
-- 9.61 4.68% 5,144 2.60% 6.54% (0.68)%
-- 9.18 (8.20)% 756 2.60% 46.77% (0.28)%
$ (0.03) $14.41 26.77% $24,558 1.70% 2.65% (0.24)%
-- 11.40 1.97% 706 1.70% 26.77% 2.72%
(0.01) 12.87 26.40% 56,582 2.20% 3.14% (0.74)%
-- 10.19 1.90% 1,718 2.20% 16.45% 2.27%
(0.01) 12.85 26.20% 21,710 2.20% 3.13% (0.75)%
-- 10.19 1.90% 452 2.20% 15.78% 1.95%
(0.01) 12.88 26.37% 36,575 2.20% 3.16% (0.76)%
-- 10.20 2.00% 1,474 2.20% 24.39% 2.05%
$ (0.12) $11.75 13.64% $ 8,911 1.55% 2.86% 1.72%
-- 10.45 4.71% 471 1.55% 29.14% 4.81%
(0.07) 11.77 13.30% 18,045 2.05% 3.38% 1.27%
-- 10.45 4.50% 1,408 2.05% 19.54% 3.68%
(0.07) 11.77 13.19% 8,362 2.05% 3.33% 1.27%
-- 10.46 4.60% 255 2.05% 20.89% 3.82%
(0.07) 11.76 13.21% 18,296 2.05% 3.35% 1.27%
-- 10.45 4.50% 1,174 2.05% 36.25% 4.05%
$ (0.38) $10.79 8.78% $ 6,034 1.40% 2.93% 4.76%
(0.03) 10.28 2.39% 61 1.40% 66.92% 4.42%
(0.32) 10.68 8.36% 17,821 1.90% 3.58% 4.23%
(0.03) 10.16 1.90% 547 1.90% 39.35% 4.13%
(0.32) 10.67 8.25% 8,743 1.90% 3.52% 4.27%
(0.03) 10.16 1.93% 165 1.90% 33.68% 4.32%
(0.32) 10.69 8.35% 11,698 1.90% 3.68% 4.25%
(0.02) 10.17 1.94% 410 1.90% 67.46% 3.94%
$(0.039) $ 1.00 3.94% $ 7,372 1.50% 2.42% 3.90%
(0.009) 1.00 0.92% 307 1.50% 31.53% 3.34%
(0.033) 1.00 3.39% 16,554 2.00% 2.89% 3.30%
(0.007) 1.00 0.75% 354 2.00% 37.83% 2.98%
(0.034) 1.00 3.42% 6,895 2.00% 3.07% 3.40%
(0.007) 1.00 0.71% 332 2.00% 24.34% 2.85%
(0.034) 1.00 3.42% 12,533 2.00% 3.18% 3.42%
(0.008) 1.00 0.77% 566 2.00% 39.71% 2.97%
</TABLE>
(1) Calculated from July 28, 1997 (Date of initial shares sold subsequent to the
effective date of the Funds' registration statement under The Securities Act
of 1933).
(2) Total return for Class X shares does not reflect the payment of bonus
shares.
(3) Annualized for periods less than one year.
* 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.
65
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 68
OCTOBER 31, 1998
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, 1998,
consisted of sixteen 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 ("Janus
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, 1998, the Feeder Funds held the following percentage interests in
their corresponding Portfolios.
<TABLE>
<S> <C>
ASMT T. Rowe Price International Equity Portfolio 82.5%
ASMT Janus Capital Growth Portfolio 90.5%
ASMT INVESCO Equity Income Portfolio 84.5%
ASMT PIMCO Total Return Bond Portfolio 74.8%
ASMT JPM Money Market Portfolio 88.4%
</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 eleven 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"), ASAF Federated High Yield Bond Fund ("High Yield Bond"),
ASAF Robertson Stephens Value + Growth ("Value + Growth"), ASAF Lord Abbett
Growth and Income Fund ("Growth and Income"), ASAF Janus Overseas Growth Fund
("Overseas Growth"), ASAF Marsico Capital Growth Fund ("Marsico Capital
Growth"), ASAF Neuberger&Berman Mid-Cap Growth Fund ("Mid-Cap Growth") and ASAF
Neuberger&Berman Mid-Cap Value Fund ("Mid-Cap Value") (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.
66
<PAGE> 69
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 interest in
the Portfolio, multiplied by the Portfolio's net assets. 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 accordance with procedures adopted by
the Board of Directors. As of October 31, 1998, there were no securities valued
in accordance with such procedures.
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 denominated in foreign
currency, but may also reduce potential gains on securities from favorable
movements in exchange rates.
67
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 70
FUTURES CONTRACTS AND OPTIONS
NON-FEEDER FUNDS -- A financial futures contract calls for delivery of a
particular security at a specified price and future date. The seller of the
contract agrees to make delivery of the type of security called for in the
contract and the buyer agrees to take delivery at a specified future date. Such
contracts require an initial deposit, in cash or cash equivalents, equal to a
certain percentage of the contract amount. Subsequent payments are made or
received by the Fund each day, depending on the daily change in the value of the
contract. Futures contracts are valued based on their quoted daily settlement
prices. Fluctuations in value are recorded as unrealized gains and losses until
such time that the contracts are terminated.
An option is a right to buy or sell a particular security at a specified
price within a limited period of time. The buyer of the option, in return for a
premium paid to the seller, has the right to buy, in the case of a call option,
or sell, in the case of a put option, the underlying security of the contract.
The premium received in cash from writing options is recorded as an asset with
an equal liability that is adjusted to reflect the options' value. The premium
received from writing options which expire is recorded as realized gains. The
premium received from writing options which are exercised or closed are offset
against the proceeds or amount paid on the transaction to determine the realized
gain or loss. If a put option is exercised, the premium reduces the cost basis
of the security or currency purchased. Options are valued based on their quoted
daily settlement prices.
Risks could arise from entering into futures and written options
transactions from the potential inability of counterparties to meet the terms of
their contracts, the potential inability to enter into a closing transaction
because of an illiquid secondary market, and from unexpected movements in
interest or exchange rates or securities values.
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 bear 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.
NON-FEEDER FUNDS -- 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
68
<PAGE> 71
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, Small Cap, Small Company
Value, Value + Growth, Overseas Growth, Marsico Capital Growth, Mid-Cap Growth,
Mid-Cap Value, International Equity and Janus Capital Growth Funds, semiannually
by the Strategic Balanced, Growth and Income, and Equity Income Funds, declared
daily and paid 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; Federated Investment
Counseling for High Yield Bond; Robertson, Stephens & Company Investment
Management, L.P. for Value + Growth; Lord Abbett & Co. for Growth and Income;
Janus Capital Corporation for Overseas Growth; Marsico Capital Management, LLC
for Marsico Capital Growth; and Neuberger&Berman Management Incorporated for
Mid-Cap Growth and Mid-Cap Value.
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%, .70%, 1.10%,
1.00%, 1.10%, 1.00%, .90% and .90% of the average daily net assets of the
International Small Cap, Small Cap, Small Company Value, Strategic Balanced,
High Yield Bond, Value + Growth, Growth and Income, Overseas Growth, Marsico
Capital Growth, Mid-Cap Growth, and Mid-Cap Value Funds, respectively. The fee
for International Small Cap is reduced to 1.00% of the average daily net assets
in excess of $100 million. The Investment Manager is currently waiving a portion
of its fee equal to .10%, .20%, and .10% of the average daily net assets of the
Value + Growth, Growth and Income, and Overseas Growth Funds, respectively.
69
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 72
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%, .25%,
.60%, .50%, .60%, .45%, .40%, and .40% of the average daily net assets of the
International Small Cap, Small Cap, Small Company Value, Strategic Balanced,
High Yield Bond, Value + Growth, Growth and Income, Overseas Growth, Marsico
Capital Growth, Mid-Cap Growth and Mid-Cap Value Funds, respectively. The
Sub-advisors for Value + Growth, Growth and Income, and Overseas Growth are
currently waiving a portion of their fee payable by the Investment Manager. The
annual rates of the fees payable to the Sub-advisors for International Small
Cap, Small Cap, Strategic Balanced, High Yield Bond, Value + Growth, Growth and
Income, and Overseas Growth are reduced for Fund net assets in excess of
specified levels.
EXPENSE LIMITATION
ALL FUNDS -- The Investment Manager has voluntarily agreed to limit the
operating expenses of each Fund (exclusive of class-specific distribution fees)
to an annual rate of 1.60%, 1.20%, 1.25%, 1.10%, 1.00%, 1.30%, 1.10%, 1.60%,
1.25%, 1.25%, 1.25%, 1.60%, 1.20%, 1.05%, .90% and 1.00% of the average daily
net assets of the International Small Cap, Small Cap, Small Company Value,
Strategic Balanced, High Yield Bond, Value + Growth, Growth and Income, Overseas
Growth, Marsico Capital Growth, Mid-Cap Growth, Mid-Cap Value, International
Equity, Janus 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.
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 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.
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
year ended October 31, 1998, ASMI retained no portion of the sales charge on
sales of Class A shares of the Funds.
Under the Class B Plan, the Funds pay ASMI a distribution and service fee
of 1.00% of the average daily net assets attributable to Class B 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 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
70
<PAGE> 73
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.
Under the Class C Plan, the Funds 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.
Under the Class X Plan, the Funds 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 ten years or less, 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 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.
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 seven and eight
years, respectively 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. During the year ended October 31, 1998, CDSCs collected by ASMI
totaled $124,482, $15,984, and $23,554 for Class B, Class C, and Class X,
respectively.
4. SHARES OF CAPITAL STOCK
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ALL FUNDS -- The authorized capital stock of the Funds is 5.5 billion shares,
with a par value of $.001 per share. Transactions in shares of capital stock,
for the fiscal year ended October 31, 1998, were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
-------------------------- ------------------------ -------------------------- -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- ------------ ---------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL SMALL
CAP:
Sold 86,775 $ 948,154 167,918 $ 1,851,350 84,357 $ 908,498 243,435
Reinvested 53 523 14 145 7 67 21
Redeemed (11,337) (122,246) (55,655) (653,576) (7,014) (75,984) (29,011)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 75,491 $ 826,431 112,277 $ 1,197,919 77,350 $ 832,581 214,445
=========== ============ ========== =========== =========== ============ ===========
SMALL CAP:
Sold 225,167 $ 2,208,610 379,743 $ 3,708,430 254,630 $ 2,401,811 479,057
Redeemed (46,693) (433,840) (118,369) (1,132,903) (31,346) (297,337) (55,354)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 178,474 $ 1,774,770 261,374 $ 2,575,527 223,284 $ 2,104,474 423,703
=========== ============ ========== =========== =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
------------
<S> <C>
INTERNATIONAL SMALL
CAP:
Sold $ 2,658,777
Reinvested 209
Redeemed (307,049)
------------
Net Increase $ 2,351,937
============
SMALL CAP:
Sold $ 4,680,015
Redeemed (495,331)
------------
Net Increase $ 4,184,684
============
</TABLE>
71
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 74
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
-------------------------- ------------------------ -------------------------- -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- ------------ ---------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
SMALL COMPANY VALUE:
Sold 1,021,252 $ 10,026,934 1,688,655 $16,836,032 1,025,988 $ 10,042,684 1,630,431
Reinvested 417 4,374 256 2,684 78 822 212
Redeemed (249,839) (2,272,268) (301,641) (2,949,022) (115,761) (1,085,977) (286,276)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 771,830 $ 7,759,040 1,387,270 $13,889,694 910,305 $ 8,957,528 1,344,367
=========== ============ ========== =========== =========== ============ ===========
STRATEGIC BALANCED:
Sold 344,894 $ 3,739,190 771,215 $ 8,328,502 294,906 $ 3,164,423 683,423
Reinvested 1,034 11,486 840 9,409 403 4,523 857
Redeemed (63,105) (702,418) (48,880) (556,672) (22,222) (238,433) (64,172)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 282,823 $ 3,048,258 723,175 $ 7,781,239 273,087 $ 2,930,513 620,108
=========== ============ ========== =========== =========== ============ ===========
HIGH YIELD BOND:
Sold 914,002 $ 9,050,780 2,473,078 $24,716,187 805,820 $ 8,047,625 1,823,826
Reinvested 20,089 198,480 45,479 449,899 18,558 183,686 36,017
Redeemed (407,297) (4,038,423) (427,818) (4,267,818) (234,296) (2,331,581) (594,353)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 526,794 $ 5,210,837 2,090,739 $20,898,268 590,082 $ 5,899,730 1,265,490
=========== ============ ========== =========== =========== ============ ===========
VALUE + GROWTH:
Sold 283,213 $ 3,109,515 898,838 $ 9,815,889 265,927 $ 2,904,473 823,445
Redeemed (25,645) (269,220) (182,926) (2,004,334) (12,530) (132,150) (162,643)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 257,568 $ 2,840,295 715,912 $ 7,811,555 253,397 $ 2,772,323 660,802
=========== ============ ========== =========== =========== ============ ===========
GROWTH AND INCOME:
Sold 619,339 $ 6,426,893 1,157,925 $12,217,205 509,140 $ 5,365,379 1,184,756
Reinvested 620 6,849 105 1,167 44 487 127
Redeemed (90,220) (909,199) (140,792) (1,455,882) (31,713) (320,384) (105,837)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 529,739 $ 5,524,543 1,017,238 $10,762,490 477,471 $ 5,045,482 1,079,046
=========== ============ ========== =========== =========== ============ ===========
OVERSEAS GROWTH:
Sold 1,057,414 $ 11,269,484 1,534,948 $16,642,383 994,577 $ 10,851,929 1,166,231
Redeemed (222,317) (2,310,095) (75,158) (782,812) (83,923) (905,162) (97,225)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 835,097 $ 8,959,389 1,459,790 $15,859,571 910,654 $ 9,946,767 1,069,006
=========== ============ ========== =========== =========== ============ ===========
MARSICO CAPITAL
GROWTH:
Sold 726,246 $ 7,070,185 1,803,833 $17,639,782 1,148,327 $ 11,278,785 698,173
Redeemed (31,271) (288,616) (25,199) (243,593) (59,297) (582,417) (129,808)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 694,975 $ 6,781,569 1,778,634 $17,396,189 1,089,030 $ 10,696,368 568,365
=========== ============ ========== =========== =========== ============ ===========
MID-CAP GROWTH:
Sold 49,762 $ 538,535 84,911 $ 893,803 76,609 $ 797,506 43,682
Redeemed -- (4) (805) (8,603) -- -- (549)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 49,762 $ 538,531 84,106 $ 885,200 76,609 $ 797,506 43,133
=========== ============ ========== =========== =========== ============ ===========
MID-CAP VALUE:
Sold 70,308 $ 703,884 184,421 $ 1,845,182 101,900 $ 1,019,193 28,876
Redeemed (285) (2,856) -- -- (4,309) (43,051) --
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 70,023 $ 701,028 184,421 $ 1,845,182 97,591 $ 976,142 28,876
=========== ============ ========== =========== =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
------------
<S> <C>
SMALL COMPANY VALUE:
Sold $ 16,569,662
Reinvested 2,228
Redeemed (2,755,864)
------------
Net Increase $ 13,816,026
============
STRATEGIC BALANCED:
Sold $ 7,377,704
Reinvested 9,648
Redeemed (678,893)
------------
Net Increase $ 6,708,459
============
HIGH YIELD BOND:
Sold $ 18,256,129
Reinvested 356,164
Redeemed (5,875,943)
------------
Net Increase $ 12,736,350
============
VALUE + GROWTH:
Sold $ 9,020,684
Redeemed (1,754,404)
------------
Net Increase $ 7,266,280
============
GROWTH AND INCOME:
Sold $ 12,627,277
Reinvested 1,410
Redeemed (1,075,167)
------------
Net Increase $ 11,553,520
============
OVERSEAS GROWTH:
Sold $ 12,776,135
Redeemed (1,042,766)
------------
Net Increase $ 11,733,369
============
MARSICO CAPITAL
GROWTH:
Sold $ 6,818,287
Redeemed (1,153,944)
------------
Net Increase $ 5,664,343
============
MID-CAP GROWTH:
Sold $ 454,990
Redeemed (5,509)
------------
Net Increase $ 449,481
============
MID-CAP VALUE:
Sold $ 288,688
Redeemed --
------------
Net Increase $ 288,688
============
</TABLE>
72
<PAGE> 75
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
-------------------------- ------------------------ -------------------------- -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- ------------ ---------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL EQUITY:
Sold 221,414 $ 2,090,387 408,621 $ 3,972,257 250,513 $ 2,401,533 555,056
Redeemed (66,338) (626,464) (105,111) (1,010,455) (33,718) (319,274) (101,971)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 155,076 $ 1,463,923 303,510 $ 2,961,802 216,795 $ 2,082,259 453,085
=========== ============ ========== =========== =========== ============ ===========
JANUS CAPITAL GROWTH:
Sold 1,818,238 $ 24,548,459 4,750,569 $58,188,656 1,826,515 $ 22,153,339 3,110,722
Reinvested 533 5,971 312 3,136 97 973 310
Redeemed (176,653) (2,408,469) (523,973) (6,534,310) (181,890) (2,229,981) (416,083)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 1,642,118 $ 22,145,961 4,226,908 $51,657,482 1,644,722 $ 19,924,331 2,694,949
=========== ============ ========== =========== =========== ============ ===========
EQUITY INCOME:
Sold 800,093 $ 9,119,192 1,649,485 $18,887,565 755,077 $ 8,644,258 1,605,054
Reinvested 3,175 37,119 3,849 45,208 1,661 19,588 4,516
Redeemed (90,254) (1,022,287) (254,863) (2,923,405) (70,668) (805,945) (166,501)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 713,014 $ 8,134,024 1,398,471 $16,009,368 686,070 $ 7,857,901 1,443,069
=========== ============ ========== =========== =========== ============ ===========
TOTAL RETURN BOND:
Sold 677,765 $ 7,232,109 1,914,506 $20,252,322 1,053,270 $ 11,077,340 1,202,518
Reinvested 4,808 51,616 13,158 139,382 10,237 108,524 12,977
Redeemed (129,332) (1,388,733) (312,304) (3,287,557) (260,589) (2,760,543) (161,117)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 553,241 $ 5,894,992 1,615,360 $17,104,147 802,918 $ 8,425,321 1,054,378
=========== ============ ========== =========== =========== ============ ===========
MONEY MARKET:
Sold 20,520,931 $ 20,520,931 25,761,335 $25,761,335 17,068,008 $ 17,068,008 30,862,241
Reinvested 95,268 95,268 126,073 126,073 76,596 76,596 187,254
Redeemed (13,551,379) (13,551,379) (9,687,147) (9,687,147) (10,580,610) (10,580,610) (19,082,355)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 7,064,820 $ 7,064,820 16,200,261 $16,200,261 6,563,994 $ 6,563,994 11,967,140
=========== ============ ========== =========== =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
------------
<S> <C>
INTERNATIONAL EQUITY:
Sold $ 5,419,289
Redeemed (973,754)
------------
Net Increase $ 4,445,535
============
JANUS CAPITAL GROWTH:
Sold $ 37,412,759
Reinvested 3,128
Redeemed (5,073,683)
------------
Net Increase $ 32,342,204
============
EQUITY INCOME:
Sold $ 18,427,772
Reinvested 53,161
Redeemed (1,882,627)
------------
Net Increase $ 16,598,306
============
TOTAL RETURN BOND:
Sold $ 12,653,752
Reinvested 137,290
Redeemed (1,706,939)
------------
Net Increase $ 11,084,103
============
MONEY MARKET:
Sold $ 30,862,241
Reinvested 187,254
Redeemed (19,082,355)
------------
Net Increase $ 11,967,140
============
</TABLE>
Transactions in shares of capital stock, for the period ended October 31,
1997, were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
-------------------------- ------------------------ -------------------------- -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- ------------ ---------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INTERNATIONAL SMALL
CAP:
Sold 9,754 $ 97,828 23,340 $ 233,440 7,998 $ 80,146 20,945
Redeemed -- -- (2) (25) (6) (55) (2)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 9,754 $ 97,828 23,338 $ 233,415 7,992 $ 80,091 20,943
=========== ============ ========== =========== =========== ============ ===========
SMALL CAP:
Sold 18,372 $ 183,278 35,572 $ 354,771 7,399 $ 73,723 27,161
Redeemed (3) (25) (3) (25) (2) (25) (7)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 18,369 $ 183,253 35,569 $ 354,746 7,397 $ 73,698 27,154
=========== ============ ========== =========== =========== ============ ===========
SMALL COMPANY VALUE:
Sold 35,645 $ 375,919 110,704 $ 1,167,706 32,096 $ 342,052 61,311
Redeemed (17) (181) (70) (760) (3) (25) (29)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 35,628 $ 375,738 110,634 $ 1,166,946 32,093 $ 342,027 61,282
=========== ============ ========== =========== =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
------------
<S> <C>
INTERNATIONAL SMALL
CAP:
Sold $ 209,179
Redeemed (25)
------------
Net Increase $ 209,154
============
SMALL CAP:
Sold $ 270,490
Redeemed (71)
------------
Net Increase $ 270,419
============
SMALL COMPANY VALUE:
Sold $ 649,944
Redeemed (317)
------------
Net Increase $ 649,627
============
</TABLE>
73
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 76
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C CLASS X
-------------------------- ------------------------ -------------------------- -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- ------------ ---------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
STRATEGIC BALANCED:
Sold 83,398 $ 838,987 38,292 $ 388,813 21,579 $ 219,920 39,958
Redeemed (58,685) (600,178) (12) (125) (3) (25) (2)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 24,713 $ 238,809 38,280 $ 388,688 21,576 $ 219,895 39,956
=========== ============ ========== =========== =========== ============ ===========
HIGH YIELD BOND:
Sold 216,427 $ 2,168,207 92,594 $ 924,866 21,719 $ 216,988 60,245
Reinvested 336 3,338 106 1,056 47 469 82
Redeemed (718) (7,184) (53) (532) (1,002) (9,951) (4,306)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 216,045 $ 2,164,361 92,647 $ 925,390 20,764 $ 207,506 56,021
=========== ============ ========== =========== =========== ============ ===========
INTERNATIONAL EQUITY:
Sold 23,490 $ 220,217 42,608 $ 405,136 21,627 $ 207,357 84,453
Redeemed (123) (1,174) (81) (797) (3) (25) (2,063)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 23,367 $ 219,043 42,527 $ 404,339 21,624 $ 207,332 82,390
=========== ============ ========== =========== =========== ============ ===========
CAPITAL GROWTH:
Sold 66,046 $ 768,680 168,878 $ 1,766,154 44,354 $ 465,523 144,494
Redeemed (5,101) (59,528) (298) (3,181) (3) (25) (10)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 60,945 $ 709,152 168,580 $ 1,762,973 44,351 $ 465,498 144,484
=========== ============ ========== =========== =========== ============ ===========
EQUITY INCOME:
Sold 44,136 $ 459,412 134,825 $ 1,411,321 24,377 $ 255,486 112,415
Redeemed -- -- (162) (1,731) -- -- (32)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 44,136 $ 459,412 134,663 $ 1,409,590 24,377 $ 255,486 112,383
=========== ============ ========== =========== =========== ============ ===========
TOTAL RETURN BOND:
Sold 5,693 $ 57,481 54,044 $ 542,228 16,227 $ 163,314 40,314
Reinvested 10 103 20 202 10 103 43
Redeemed (746) (7,525) (202) (2,025) (3) (25) (23)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 4,957 $ 50,059 53,862 $ 540,405 16,234 $ 163,392 40,334
=========== ============ ========== =========== =========== ============ ===========
MONEY MARKET:
Sold 374,404 $ 374,404 702,299 $ 702,299 531,152 $ 531,152 874,395
Reinvested 1,094 1,094 1,141 1,141 891 891 725
Redeemed (78,485) (78,485) (349,856) (349,856) (200,540) (200,540) (308,714)
----------- ------------ ---------- ----------- ----------- ------------ -----------
Net Increase 297,013 $ 297,013 353,584 $ 353,584 331,503 $ 331,503 566,406
=========== ============ ========== =========== =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
------------
<S> <C>
STRATEGIC BALANCED:
Sold $ 399,935
Redeemed (25)
------------
Net Increase $ 399,910
============
HIGH YIELD BOND:
Sold $ 600,477
Reinvested 811
Redeemed (43,056)
------------
Net Increase $ 558,232
============
INTERNATIONAL EQUITY:
Sold $ 806,216
Redeemed (19,413)
------------
Net Increase $ 786,803
============
CAPITAL GROWTH:
Sold $ 1,503,024
Redeemed (105)
------------
Net Increase $ 1,502,919
============
EQUITY INCOME:
Sold $ 1,168,540
Redeemed (339)
------------
Net Increase $ 1,168,201
============
TOTAL RETURN BOND:
Sold $ 405,133
Reinvested 430
Redeemed (233)
------------
Net Increase $ 405,330
============
MONEY MARKET:
Sold $ 874,395
Reinvested 725
Redeemed (308,714)
------------
Net Increase $ 566,406
============
</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.
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
74
<PAGE> 77
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, 1998, 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 2006
------- ----------
<S> <C> <C>
International Small Cap $ -- $ 185,715
Small Cap -- 860,425
Small Company Value 37 334,901
Strategic Balanced 1,010 1,067,686
High Yield Bond 4,183 17,619
Value + Growth -- 2,108,704
Growth and Income -- 1,122,945
Overseas Growth -- 2,242,636
Marsico Capital Growth -- 682,762
International Equity -- 73,332
Capital Growth 38,807 4,789,881
Equity Income 12,699 517,156
Money Market -- 666
</TABLE>
6. PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NON-FEEDER FUNDS -- Purchases and sales of securities, other than U.S.
government securities, and short-term obligations, during the year ended October
31, 1998, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
International Small Cap $4,951,361 $ 1,110,168
Small Cap 11,392,099 3,394,331
Small Company Value 41,610,709 789,030
Strategic Balanced 25,519,621 7,498,693
High Yield Bond 46,250,707 4,437,545
Value + Growth 38,795,276 18,604,553
Growth and Income 36,100,399 5,313,059
Overseas Growth 48,437,604 12,495,864
Marsico Capital Growth 42,367,176 9,745,208
Mid-Cap Growth 2,786,452 726,882
Mid-Cap Value 2,945,246 23,376
</TABLE>
Purchases and sales of U.S. government securities, during the year ended
October 31, 1998, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Strategic Balanced $6,683,591 $ 416,320
</TABLE>
75
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 78
At October 31, 1998, 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>
NET
GROSS GROSS UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
International Small
Cap $4,046,019 $ 281,552 $ 352,399 $ (70,847)
Small Cap 10,348,350 895,421 847,154 48,267
Small Company Value 46,746,553 1,347,533 6,917,822 (5,570,289)
Strategic Balanced 20,203,082 1,387,652 93,918 1,293,734
High Yield Bond 49,843,749 197,148 3,177,618 (2,980,470)
Value + Growth 18,729,362 1,870,558 655,171 1,215,387
Growth and Income 32,768,310 1,862,254 990,423 871,831
Overseas Growth 42,503,052 2,835,607 1,667,064 1,168,543
Marsico Capital Growth 41,909,067 2,095,979 177,421 1,918,558
Mid-Cap Growth 2,439,556 267,154 40,107 227,047
Mid-Cap Value 3,688,249 96,229 15,668 80,561
</TABLE>
76
<PAGE> 79
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors
of American Skandia Advisor Funds, Inc:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of 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, ASAF Robertson Stephens Value + Growth Fund,
ASAF Lord Abbett Growth and Income Fund, ASAF Janus Overseas Growth Fund, ASAF
Marsico Capital Growth Fund, ASAF Neuberger&Berman Mid-Cap Growth Fund, ASAF
Neuberger&Berman Mid-Cap Value Fund, ASAF T. Rowe Price International Equity
Fund, ASAF Janus Capital Growth Fund, ASAF INVESCO Equity Income Fund, ASAF
Total Return Bond Fund and ASAF JPM Money Market Fund of American Skandia
Advisor Funds, Inc. (the "Company"), at October 31, 1998, the results of their
operations, the changes in each of their net assets and the financial highlights
for each of the periods presented, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Company's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities owned at October 31, 1998 by correspondence with the
custodians and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 11, 1998
77
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<PAGE> 80
[This page intentionally left blank.]
78
<PAGE> 81
AMERICAN SKANDIA MASTER TRUST
SCHEDULES OF INVESTMENTS
OCTOBER 31, 1998
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
79
<PAGE> 82
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 95.1%
ARGENTINA -- 0.8%
Banco de Galicia y
Buenos Aires SA de CV
[ADR] (Financial-Bank
& Trust) 434 $ 7,405
Banco Frances SA [ADR]
(Financial-Bank &
Trust) 360 7,515
Perez Companc SA* (Oil &
Gas) 4,560 22,351
Telefonica de Argentina
SA Cl-B [ADR]
(Telecommuncations) 880 29,095
YPF SA [ADR] (Oil & Gas) 1,730 50,062
-----------
116,428
-----------
AUSTRALIA -- 2.6%
AMP Ltd.* (Insurance) 1,000 11,844
Australian Gas Light Co.
Ltd. (Utilities) 3,092 22,142
Brambles Industries Ltd.
(Transportation) 1,000 21,835
Broken Hill Proprietary
Co. Ltd. (Metals &
Mining) 2,036 17,230
Colonial Ltd. (Financial
Services) 5,073 16,548
Commonwealth Bank of
Australia
(Financial-Bank &
Trust) 3,050 37,749
Fosters Brewing Group
Ltd. (Beverages) 5,000 12,228
Goodman Fielder Ltd.
(Food) 12,000 15,778
John Fairfax Holdings
Ltd. (Printing &
Publishing) 6,000 10,454
Lend Lease Corp. Ltd.
(Financial Services) 1,000 21,964
National Australia Bank
Ltd. (Financial-Bank &
Trust) 1,022 13,482
News Corp. Ltd.
(Broadcasting) 4,005 27,239
News Corp. Ltd. Pfd.
(Broadcasting) 4,013 24,023
Publishing &
Broadcasting Ltd.
(Broadcasting) 3,000 11,854
Star City Holdings Ltd.*
(Entertainment &
Leisure) 13,000 8,818
TABCORP Holdings Ltd.
(Entertainment &
Leisure) 4,000 26,494
Telstra Corp. Ltd.
(Telecommunications) 10,000 39,514
Westpac Banking Corp.
Ltd. (Financial-Bank &
Trust) 5,065 30,667
Woodside Petroleum Ltd.
(Oil & Gas) 3,000 15,784
-----------
385,647
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
BELGIUM -- 1.7%
Dexia (Credit Communal)
Belgium
(Financial Services) 130 $ 21,122
Fortis AG (Insurance) 250 71,870
KBC Bancassurance
Holdings NV
(Financial-Bank &
Trust) 2,110 147,321
Societe Europeene des
Satellites [FDR]*
(Broadcasting) 100 16,687
-----------
257,000
-----------
BRAZIL -- 1.4%
Companhia Brasileira de
Distribuicoa Grupo Pao
de Acucar [GDR]
(Retail &
Merchandising) 1,000 16,125
Companhia Energetica de
Minas Geras [ADR]
(Utilities) 1,223 23,786
Telecomunicacoes
Brasileiras SA [ADR]
(Telecommunications) 2,000 151,875
Uniao de Bancos
Brasileiros SA [GDR]
(Financial-Bank &
Trust) 1,000 17,500
-----------
209,286
-----------
CANADA -- 0.2%
Alcan Aluminium Ltd.
(Metals & Mining) 760 19,037
Royal Bank of Canada
(Financial-Bank &
Trust) 250 11,490
-----------
30,527
-----------
CHILE -- 0.1%
Chilectra SA [ADR] 144A*
(Utilities) 464 9,128
Compania Cervecerias
Unidas SA [ADR]
(Beverages) 430 7,740
-----------
16,868
-----------
CHINA -- 0.2%
Huaneng Power
International, Inc.
[ADR]* (Utilities) 2,000 27,500
-----------
CZECH REPUBLIC -- 0.1%
SPT Telecom AS
(Telecommunications) 795 12,036
-----------
</TABLE>
80
<PAGE> 83
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
DENMARK -- 0.4%
Den Danske Bank
(Financial Services) 240 $ 32,592
Tele Danmark AS
(Telecommunications) 120 13,075
Unidanmark AS Cl-A
(Financial Services) 130 9,911
-----------
55,578
-----------
FINLAND -- 0.5%
Nokia Oyj Cl-A
(Telecommunications) 910 82,811
-----------
FRANCE -- 10.0%
Alcatel
(Telecommunications) 500 55,697
AXA SA (Insurance) 900 101,712
Canal Plus
(Broadcasting) 50 12,129
Carrefour Supermarche SA
(Retail &
Merchandising) 90 59,731
Compagnie de Saint-
Gobain (Industrial
Products) 440 65,087
Credit Commercial de
France (Financial-Bank
& Trust) 590 41,429
Dexia France SA
(Financial Services) 120 17,686
Groupe Danone (Food) 200 52,871
Groupe GTM (Medical
Supplies & Equipment) 130 14,083
L'Oreal (Consumer
Products) 50 28,568
Lafarge SA (Building
Materials) 250 25,554
Lapeyre SA (Building
Materials) 180 15,872
Legrand SA (Electronic
Components &
Equipment) 110 28,030
Pathe SA (Broadcasting) 70 13,365
Pinault-Printemps
Redoute SA (Retail &
Merchandising) 810 135,562
Sanofi SA (Medical
Supplies & Equipment) 690 108,028
Schneider SA (Electronic
Components &
Equipment) 1,130 67,065
Societe Generale
(Financial Services) 300 39,681
Societe Nationale Elf
Aquitaine SA (Oil &
Gas) 400 46,285
Societe Television
Francaise
(Broadcasting) 380 62,776
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Sodexho SA*
(Restaurants) 508 $ 98,640
STMicroelectronics NV*
(Semiconductors) 410 25,086
Total SA Cl-B (Oil &
Gas) 1,320 152,265
Vivendi (Conglomerates) 1,000 228,366
-----------
1,495,568
-----------
GERMANY -- 7.3%
Allianz AG (Insurance) 240 80,498
Bayer AG
(Pharmaceuticals) 1,450 58,440
Bayerische Hypo-Und
Vereinsbank AG*
(Financial-Bank &
Trust) 1,800 143,463
Buderus AG (Industrial
Products) 30 12,408
Deutsche Bank AG
(Financial Services) 1,140 73,686
Deutsche Telekom AG
(Telecommunications) 2,110 57,076
Dresdner Bank AG
(Financial Services) 1,880 74,125
Fresenius AG Pfd.
(Pharmaceuticals) 50 8,740
Gehe AG
(Pharmaceuticals) 1,880 136,217
Hoechst AG (Chemicals) 620 25,868
Hornbach Holdings AG
Pfd. (Retail &
Merchandising) 200 15,336
Mannesmann AG
(Industrial Products) 1,130 109,440
Rhoen-Klinikum AG
(Healthcare Services) 290 28,892
SAP AG (Computer
Services & Software) 200 85,498
SAP AG Pfd. (Computer
Services & Software) 110 53,533
Siemens AG (Industrial
Products) 460 27,941
Veba AG (Utilities) 1,510 82,877
Volkswagen AG
(Automobile
Manufacturers) 380 28,589
-----------
1,102,627
-----------
</TABLE>
81
AMERICAN SKANDIA MASTER TRUST
<PAGE> 84
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
HONG KONG -- 1.3%
Cheung Kong Holdings
Ltd. (Real Estate) 1,000 $ 6,842
China Light & Power Co.
Ltd. (Utilities) 5,000 28,080
Hang Seng Bank Ltd.
(Financial Services) 1,000 8,650
Henderson Land
Development Co. Ltd.
(Real Estate) 4,000 19,675
Hong Kong
Telecommunications
Ltd.
(Telecommunications) 11,600 23,213
Hutchison Whampoa Ltd.
(Conglomerates) 14,000 100,312
Sun Hung Kai & Co.
(Conglomerates) 1,000 6,972
-----------
193,744
-----------
IRELAND -- 0.0%
CBT Group PLC [ADR]*
(Computer Services &
Software) 220 2,626
-----------
ITALY -- 5.4%
Assicurazioni Generali
(Insurance) 2,160 77,397
Banca Commerciale Italia
NA (Financial-Bank &
Trust) 4,000 24,734
Banca di Roma*
(Financial-Bank &
Trust) 29,000 50,629
Ente Nazionale
Idrocarburi SPA (Oil &
Gas) 14,000 83,323
Industrie Natuzzi SPA
[ADR] (Furniture) 1,000 18,188
Istituto Mobiliare
Italiano SPA
(Financial Services) 5,000 76,914
Istituto Nazionale delle
Assicurazioni
(Insurance) 11,000 30,317
Italgas SPA (Utilities) 5,000 22,906
La Rinascente SPA
(Retail &
Merchandising) 1,000 9,645
Mediolanum SPA
(Insurance) 2,000 49,811
Telecom Italia Mobile
SPA
(Telecommunications) 19,000 110,356
Telecom Italia SPA
(Telecommunications) 23,000 166,372
Unicredito Italiano SPA
(Financial-Bank &
Trust) 17,000 91,320
-----------
811,912
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
JAPAN -- 16.3%
Advantest Corp.
(Semiconductors) 200 $ 12,615
Alps Electric Co. Ltd.
(Electronic Components
& Equipment) 2,000 27,530
Canon, Inc. (Consumer
Products) 6,000 113,536
Citizen Watch Co. Ltd.
(Retail &
Merchandising) 2,000 11,053
Dai Nippon Screen
Manufacturing Co. Ltd.
(Machinery &
Equipment) 1,000 2,188
Daiichi Pharmaceutical
Co. Ltd.
(Pharmaceuticals) 3,000 50,074
Daiwa House Industry Co.
Ltd. (Construction) 4,000 45,140
DDI Corp.
(Telecommunications) 7 20,425
Denso Corp. (Automotive
Parts) 6,000 113,021
East Japan Railway Co.
Ltd. (Railroads) 10 59,300
Fanuc Co. (Electronic
Components &
Equipment) 800 24,029
Fujitsu Ltd. (Electronic
Components &
Equipment) 1,000 10,641
Hitachi Ltd. (Electronic
Components &
Equipment) 7,000 35,623
Honda Motor Co. Ltd.
(Automobile
Manufacturers) 1,000 30,036
Ito-Yokado Co. Ltd.
(Retail &
Merchandising) 2,000 116,712
Kao Corp. (Consumer
Products & Services) 3,000 60,759
Kokuyo Co. Ltd. (Office
Equipment) 2,000 26,603
Komatsu Ltd. (Machinery
& Equipment) 4,000 21,626
Komori Corp. (Machinery
& Equipment) 2,000 36,730
Kuraray Co. Ltd.
(Medical Supplies &
Equipment) 4,000 42,668
Kyocera Corp.
(Electronic Components
& Equipment) 2,000 88,392
</TABLE>
82
<PAGE> 85
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Makita Corp. (Machinery
& Equipment) 3,000 $ 31,718
Matsushita Electric
Industrial Co.
(Electronic Components
& Equipment) 7,000 102,783
Mauri Co. Ltd. (Retail &
Merchandising) 5,000 87,105
Mitsubishi Corp.
(Conglomerates) 5,000 26,475
Mitsubishi Heavy
Industries Ltd.
(Machinery &
Equipment) 19,000 73,374
Mitsui Fudosan Co. Ltd.
(Real Estate) 10,000 66,423
Murata Manufacturing Co.
Ltd. (Electronic
Components &
Equipment) 2,000 67,452
NEC Corp. (Electronic
Components &
Equipment) 11,000 81,466
Nippon Telegraph &
Telephone Corp.
(Telecommunications) 5 39,133
Nomura Securities Co.
Ltd. (Financial
Services) 6,000 45,312
Pioneer Electronic Corp.
(Electronic Components
& Equipment) 1,000 16,477
Sankyo Co. Ltd.
(Pharmaceuticals) 5,000 112,850
Sekisui Chemical Co.
Ltd. (Chemicals) 5,000 27,247
Sekisui House Ltd.
(Construction) 4,000 39,854
Seven-Eleven Japan Co.
Ltd. (Retail &
Merchandising) 1,000 76,034
Shin-Etsu Chemical Co.
(Chemicals) 4,000 79,639
Shiseido Co. Ltd.
(Consumer Products &
Services) 2,000 21,901
Sony Corp. (Electronic
Components &
Equipment) 1,600 101,608
Sumitomo Corp.
(Conglomerates) 7,000 33,520
Sumitomo Electric
Industries (Machinery
& Equipment) 9,000 99,634
Sumitomo Forestry Co.
(Construction) 2,000 13,611
TDK Corp. (Consumer
Products & Services) 2,000 131,815
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Tokio Marine & Fire
Insurance Co.
(Insurance) 2,000 $ 22,742
Tokyo Electron Ltd.
(Electronic Components
& Equipment) 1,000 32,525
Toppan Printing Co. Ltd.
(Printing &
Publishing) 4,000 41,021
UNY Co. Ltd. (Retail &
Merchandising) 2,000 32,611
-----------
2,453,031
-----------
KOREA -- 0.1%
Korea Fund, Inc.**
(Financial Services) 1,714 14,248
-----------
MEXICO -- 1.9%
Cemex SA de CV (Building
Materials) 90 211
Cemex SA de CV [ADR]*
(Building Materials) 4,000 18,374
Cemex SA de CV Cl-B
(Building Materials) 3,000 8,150
Cifra SA [ADR]* (Retail
& Merchandising) 620 8,317
Fomento Economico
Mexicano SA de CV UBD
Units* (Conglomerates) 10,000 25,191
Gruma SA [ADS]* (Food) 525 5,290
Gruma SA Cl-B* (Food) 4,067 10,245
Grupo Industrial Maseca
SA de CV Cl-B (Food) 17,000 14,040
Grupo Modelo SA de CV
Cl-C (Beverages) 12,000 25,428
Grupo Televisa SA [GDR]*
(Broadcasting) 1,000 27,125
Kimberly-Clark de Mexico
SA Cl-A (Paper &
Forest Products) 4,000 11,459
Panamerican Beverages,
Inc. Cl-A (Beverages) 1,000 20,250
Telefonos de Mexico SA
Cl-L [ADR]
(Telecommunications) 2,000 105,625
TV Azteca SA de CV [ADR]
(Broadcasting) 1,000 8,750
-----------
288,455
-----------
</TABLE>
83
AMERICAN SKANDIA MASTER TRUST
<PAGE> 86
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
NETHERLANDS -- 10.8%
ABN AMRO Holding NV
(Financial-Bank &
Trust) 3,610 $ 67,651
AKZO Nobel NV
(Chemicals) 240 9,329
ASM Lithography Holding
NV* (Electronic
Components &
Equipment) 1,720 43,652
CSM NV (Food) 1,550 76,351
Elsevier NV (Printing &
Publishing) 7,950 111,949
Fortis Amev NV
(Insurance) 1,500 97,420
Gucci Group NV (Clothing
& Apparel) 335 12,772
ING Groep NV (Financial-
Bank & Trust) 4,080 197,481
Koninklijke Ahold NV
(Food) 2,970 98,752
Koninklijke Numico NV
(Food) 1,190 46,831
KPN NV
(Telecommunications) 640 24,878
PolyGram NV
(Entertainment &
Leisure) 1,050 61,898
Royal Dutch Petroleum
Co. (Oil & Gas) 4,620 223,124
Royal Philips
Electronics NV
(Electronic Components
& Equipment) 750 39,916
TNT Post Group NV
(Transportation) 280 7,496
Unilever NV (Consumer
Products & Services) 2,060 152,872
Wolters Kluwer NV
(Printing &
Publishing) 1,830 354,697
-----------
1,627,069
-----------
NEW ZEALAND -- 0.1%
Telecom Corp. of New
Zealand Ltd.
(Telecommunications) 3,000 12,309
Telecom Corp. of New
Zealand Ltd. Cl-IR
(Telecommunications) 2,000 3,896
-----------
16,205
-----------
NORWAY -- 1.5%
Norsk Hydro AS
(Industrial Products) 2,480 107,650
Orkla ASA Cl-A (Consumer
Products & Services) 6,330 106,902
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Saga Petroleum ASA (Oil
& Gas) 520 $ 6,560
-----------
221,112
-----------
PORTUGAL -- 0.5%
Jeronimo Martins, SGPS,
SA (Retail &
Merchandising) 1,720 74,571
-----------
SINGAPORE -- 0.1%
Singapore Press Holdings
Ltd. (Printing &
Publishing) 1,149 9,950
Singapore
Telecommunications
Ltd.
(Telecommunications) 6,000 10,355
-----------
20,305
-----------
SPAIN -- 3.0%
Banco Bilbao Vizcaya SA
(Financial-Bank &
Trust) 2,310 31,102
Banco Santander SA
(Financial Services) 3,651 66,751
Corporacion Bancaria de
Espana SA (Financial-
Bank & Trust) 1,790 38,878
Endesa SA (Utilities) 2,500 62,892
Gas Natural SDG SA (Oil
& Gas) 460 39,541
Iberdrola SA
(Conglomerates) 2,620 42,238
Repsol SA (Oil & Gas) 560 28,056
Telefonica SA
(Telecommunications) 3,120 140,616
-----------
450,074
-----------
SWEDEN -- 3.2%
ABB AB Cl-A (Machinery &
Equipment) 2,600 27,441
Astra AB Cl-B
(Pharmaceuticals) 7,160 112,206
Atlas Copco AB Cl-B
(Machinery &
Equipment) 1,610 37,383
Electrolux AB Cl-B
(Consumer Products &
Services) 4,300 64,636
Hennes & Mauritz
AB Cl-B (Clothing &
Apparel) 1,800 126,649
Nordbanken Holding Co.
AB (Financial-Bank &
Trust) 13,260 79,388
Sandvik AB Cl-B
(Machinery &
Equipment) 1,300 26,692
-----------
474,395
-----------
</TABLE>
84
<PAGE> 87
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SWITZERLAND -- 6.7%
ABB AG (Equipment
Services) 50 $ 59,893
Adecco SA (Business
Services) 210 83,746
Credit Suisse Group
(Financial Services) 410 63,055
Nestle SA (Food) 140 297,765
Novartis AG (Medical
Supplies & Equipment) 120 216,234
Roche Holding AG
(Pharmaceuticals) 10 116,684
Swisscom AG*
(Telecommunications) 63 21,355
UBS AG (Financial-Bank &
Trust) 552 151,443
-----------
1,010,175
-----------
UNITED KINGDOM -- 18.9%
Abbey National PLC
(Financial Services) 5,000 97,300
ASDA Group PLC (Retail &
Merchandising) 16,000 43,140
BG PLC (Oil & Gas) 5,000 32,782
British Petroleum Co.
PLC (Oil & Gas) 5,000 73,436
Cable & Wireless PLC
(Telecommunications) 10,000 112,205
Cadbury Schweppes PLC
(Food) 8,000 122,588
Caradon PLC (Building
Materials) 12,000 24,920
Centrica PLC* (Oil &
Gas) 6,000 11,656
Compass Group PLC (Food) 7,000 70,924
Diageo PLC (Consurmer
Products & Services) 20,776 224,419
Electrocomponents PLC
(Electronic Components
& Equipment) 3,000 19,858
GKN PLC (Conglomerates) 2,000 24,317
Glaxo Wellcome PLC
(Pharmaceuticals) 8,000 248,660
Kingfisher PLC (Retail &
Merchandising) 24,000 210,812
Ladbroke Group PLC
(Entertainment &
Leisure) 7,000 25,644
National Westminster
Bank PLC
(Financial-Bank &
Trust) 22,000 371,751
Rank Group PLC
(Entertainment &
Leisure) 4,000 16,379
Reed International PLC
(Printing &
Publishing) 19,000 160,847
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Rio Tinto PLC (Metals &
Mining) 6,000 $ 72,850
Rolls-Royce PLC
(Machinery &
Equipment) 4,000 14,771
Safeway PLC (Retail &
Merchandising) 9,000 45,217
Shell Transport &
Trading Co. PLC (Oil &
Gas) 31,000 188,325
Smith, (David S.)
Holdings PLC
(Paper & Forest
Products) 5,000 10,551
SmithKline Beecham PLC
(Pharmaceuticals) 27,000 337,771
Tesco PLC (Retail &
Merchandising) 24,000 67,725
Tomkins PLC
(Conglomerates) 23,000 106,502
Unilever PLC (Consumer
Products & Services) 1,000 10,048
United News & Media PLC
(Printing &
Publishing) 8,000 88,558
-----------
2,833,956
-----------
TOTAL INVESTMENTS -- 95.1%
(Cost $14,409,218) 14,283,754
OTHER ASSETS LESS
LIABILITIES -- 4.9% 737,029
-----------
NET ASSETS -- 100.0% $15,020,783
===========
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1998:
<TABLE>
<CAPTION>
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS UNREALIZED
MONTH TYPE RECEIVE FOR AT VALUE DEPRECIATION
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Nov-98 Buy GBP 50,875 $85,271 $85,100 $171
======= ======= ====
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
** Closed-end fund.
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 year, these securities amounted
to 0.1% of net assets.
See Notes to Financial Statements.
85
AMERICAN SKANDIA MASTER TRUST
<PAGE> 88
ASMT JANUS
CAPITAL GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 76.4%
BEVERAGES -- 1.6%
Coca-Cola Co. 36,115 $ 2,442,277
------------
COMPUTER HARDWARE -- 5.3%
Dell Computer Corp.* 125,530 8,237,906
------------
COMPUTER SERVICES & SOFTWARE -- 23.7%
America Online, Inc.* 81,015 10,293,968
Cisco Systems, Inc.* 94,177 5,933,151
Edwards, (J.D.) & Co.* 36,825 1,206,019
Intuit, Inc.* 51,610 2,606,305
Microsoft Corp.* 88,360 9,355,115
VERITAS Software
Corp.* 143,725 7,204,216
------------
36,598,774
------------
CONSUMER PRODUCTS & SERVICES -- 1.9%
Colgate-Palmolive Co. 32,805 2,899,142
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 6.6%
General Electric Co. 68,965 6,034,437
Texas Instruments,
Inc. 64,775 4,141,552
------------
10,175,989
------------
ENTERTAINMENT & LEISURE -- 4.6%
Time Warner, Inc. 76,785 7,126,608
------------
FINANCIAL -- BANK & TRUST -- 1.5%
U.S. Bancorp 65,215 2,380,348
------------
FINANCIAL SERVICES -- 2.1%
Fannie Mae 44,710 3,166,027
------------
FOOD -- 2.3%
Safeway, Inc.* 74,195 3,547,448
------------
HEALTHCARE SERVICES -- 1.6%
IMS Health, Inc. 37,125 2,468,813
------------
OFFICE EQUIPMENT -- 1.1%
Staples, Inc.* 51,775 1,689,159
------------
PHARMACEUTICALS -- 8.9%
Lilly, (Eli) & Co. 15,610 1,263,434
MedImmune, Inc.* 23,945 1,610,301
Pfizer, Inc. 47,713 5,120,201
Warner-Lambert Co. 72,398 5,674,193
------------
13,668,129
------------
RETAIL & MERCHANDISING -- 5.4%
Costco Companies,
Inc.* 123,595 7,014,016
Home Depot, Inc. 28,520 1,240,620
------------
8,254,636
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 9.8%
Global TeleSystems
Group, Inc.* 20,015 $ 801,851
Lucent Technologies,
Inc. 31,985 2,564,797
MCI WorldCom, Inc.* 49,500 2,734,875
Nokia Corp. Cl-A [ADR] 74,105 6,896,397
Qwest Communications
International, Inc.* 55,165 2,158,331
------------
15,156,251
------------
TOTAL COMMON STOCK (Cost
$101,363,607) 117,811,507
------------
FOREIGN STOCK -- 2.5%
COMPUTER SERVICES & SOFTWARE -- 1.6%
SAP AG Pfd. -- (DEM) 5,023 2,444,504
------------
PHARMACEUTICALS -- 0.9%
SmithKline Beecham
PLC -- (GBP) 111,239 1,391,605
------------
TOTAL FOREIGN STOCK (Cost
$4,216,632) 3,836,109
------------
PAR
(000)
-------
CORPORATE OBLIGATIONS -- 0.4%
ENTERTAINMENT & LEISURE -- 0.2%
Venetian Casino Resort
LLC Co. Guarantee
Notes 12.25%,
11/15/04 $275 245,438
------------
TELECOMMUNICATIONS -- 0.2%
Lenfest
Communications, Inc.
Sr. Notes 7.625%,
02/15/08 140 140,350
Lenfest
Communications, Inc.
Sr. Sub. Notes
8.25%, 02/15/08 175 179,594
------------
319,944
------------
TOTAL CORPORATE OBLIGATIONS (Cost
$589,592) 565,382
------------
</TABLE>
86
<PAGE> 89
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 13.4%
Federal Home Loan Bank
Disc. Notes
5.35%, 11/02/98 $15,000 $ 14,997,771
Federal Mtge. Corp.
Disc. Notes
5.40%, 11/02/98 5,700 5,699,145
------------
(Cost $20,696,916) 20,696,916
------------
COMMERCIAL PAPER -- 4.5%
Prudential Funding
Corp. 5.66%,
11/02/98
(Cost $6,998,899) 7,000 6,998,899
------------
SHORT-TERM INVESTMENTS -- 0.1%
Temporary Investment
Cash Fund 54,898 54,898
Temporary Investment
Fund 54,898 54,898
------------
(Cost $109,796) 109,796
------------
TOTAL INVESTMENTS -- 97.3%
(Cost $133,975,442) 150,018,609
OTHER ASSETS LESS
LIABILITIES -- 2.7% 4,219,883
------------
NET ASSETS -- 100.0% $154,238,492
============
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
See Notes to Financial Statements.
87
AMERICAN SKANDIA MASTER TRUST
<PAGE> 90
ASMT INVESCO
EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 70.6%
AEROSPACE -- 3.3%
AlliedSignal, Inc. 16,000 $ 623,000
General Dynamics Corp. 10,600 627,387
Northrop Grumman Corp. 10,900 869,275
-----------
2,119,662
-----------
AUTOMOBILE MANUFACTURERS -- 1.0%
Ford Motor Co. 12,000 651,000
-----------
BEVERAGES -- 2.2%
Anheuser-Busch
Companies, Inc. 23,000 1,367,062
-----------
COMPUTER HARDWARE -- 1.1%
International Business
Machines Corp. 4,500 667,969
-----------
COMPUTER SERVICES & SOFTWARE -- 2.3%
Edwards, (J.D.) & Co.* 22,000 720,500
Microsoft Corp.* 7,000 741,125
-----------
1,461,625
-----------
CONGLOMERATES -- 1.3%
Textron, Inc. 11,300 840,437
-----------
CONSUMER PRODUCTS & SERVICES -- 3.9%
Colgate-Palmolive Co. 10,200 901,425
Gillette Co. 13,500 606,656
Procter & Gamble Co. 10,600 942,075
-----------
2,450,156
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.9%
Applied Materials, Inc.* 22,500 780,469
Emerson Electric Co. 9,700 640,200
General Electric Co. 9,000 787,500
Tandy Corp. 14,000 693,875
Texas Instruments, Inc. 13,000 831,187
-----------
3,733,231
-----------
ENVIRONMENTAL SERVICES -- 0.9%
Republic Services, Inc.
Cl-A* 27,000 590,625
-----------
FINANCIAL -- BANK & TRUST -- 7.0%
Bank of New York Co.,
Inc. 40,400 1,275,125
Charter One Financial,
Inc. 26,065 715,158
Fleet Financial Group,
Inc. 16,800 670,950
Mellon Bank Corp. 10,400 625,300
St. Paul Bancorp, Inc. 27,900 573,694
Summit Bancorp 15,000 569,062
-----------
4,429,289
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
FOOD -- 6.0%
Albertsons, Inc. 10,000 $ 555,625
General Mills, Inc. 13,650 1,003,275
Heinz, (H.J.) Co. 10,000 581,250
Kellogg Co. 12,800 422,400
Quaker Oats Co. 12,800 756,000
Tasty Baking Co. 34,000 493,000
-----------
3,811,550
-----------
HOTELS & MOTELS -- 0.6%
Hilton Hotels Corp. 20,000 401,250
-----------
INSURANCE -- 3.1%
Allmerica Financial
Corp. 10,000 500,000
CIGNA Corp. 8,200 598,087
Ohio Casualty Corp. 6,500 245,375
Travelers Property
Casualty Corp. Cl-A 20,000 613,750
-----------
1,957,212
-----------
OIL & GAS -- 8.3%
Apache Corp. 16,000 453,000
Chevron Corp. 5,500 448,250
Conoco, Inc. Cl-A* 36,000 895,500
Exxon Corp. 7,300 520,125
Halliburton Co. 19,500 700,781
National Fuel Gas Co. 18,000 850,500
Royal Dutch Petroleum
Co. 7,700 379,225
Schlumberger Ltd. 8,000 420,000
Unocal Corp. 17,000 576,937
-----------
5,244,318
-----------
PAPER & FOREST PRODUCTS -- 0.8%
Fort James Corp. 13,000 524,062
-----------
PHARMACEUTICALS -- 7.1%
American Home Products
Corp. 14,200 692,250
Bristol-Meyers Squibb
Co. 7,500 829,219
Lilly, (Eli) & Co. 10,000 809,375
Merck & Co., Inc. 6,000 811,500
SmithKline Beecham PLC
[ADR] 10,000 637,500
Warner-Lambert Co. 9,600 752,400
-----------
4,532,244
-----------
RAILROADS -- 1.9%
Kansas City Southern
Industries, Inc. 19,900 768,637
Norfolk Southern Corp. 13,100 431,481
-----------
1,200,118
-----------
REAL ESTATE -- 0.2%
HRPT Properties Trust
[REIT] 7,100 113,156
-----------
</TABLE>
88
<PAGE> 91
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
RETAIL & MERCHANDISING -- 2.6%
Dayton-Hudson Corp. 13,500 $ 572,062
Federated Department
Stores, Inc.* 10,100 388,219
Penney, (J.C.) Co., Inc. 15,000 712,500
-----------
1,672,781
-----------
SEMICONDUCTORS -- 2.1%
Intel Corp. 6,500 579,719
Motorola, Inc. 15,000 780,000
-----------
1,359,719
-----------
TELECOMMUNICATIONS -- 7.2%
Ameritech Corp. 13,100 706,581
Bell Atlantic Corp. 14,300 759,687
GTE Corp. 13,000 762,937
SBC Communications, Inc. 15,700 727,106
Sprint Corp. 10,700 821,225
U.S. West, Inc. 13,500 774,563
-----------
4,552,099
-----------
UTILITIES -- 1.8%
Northern States Power
Co. 21,200 572,400
Unicom Corp. 15,000 565,313
-----------
1,137,713
-----------
TOTAL COMMON STOCK
(Cost $42,323,149) 44,817,278
-----------
PAR
(000)
------
CORPORATE OBLIGATIONS -- 17.7%
BROADCASTING -- 0.8%
CBS, Inc. Debs.
8.875%, 06/01/22 $ 200 227,500
Continental Cablevision,
Inc. Sr. Debs.
9.50%, 08/01/13 250 303,750
-----------
531,250
-----------
BUILDING MATERIALS -- 0.4%
USG Corp. Sr. Notes
8.50%, 08/01/05 250 261,563
-----------
CONSUMER PRODUCTS & SERVICES -- 0.3%
Loewen Group, Inc. Co.
Guarantee Notes
8.25%, 10/15/03 250 198,750
-----------
ENTERTAINMENT & LEISURE -- 0.6%
Grand Casinos, Inc.
First Mtge.
10.125%, 12/01/03 250 263,438
Time Warner
Entertainment Co.
Debs.
7.25%, 09/01/08 100 108,750
-----------
372,188
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES -- 1.0%
Lehman Brothers
Holdings, Inc. Sr.
Notes
8.80%, 03/01/15 $ 25 $ 26,188
SunAmerica, Inc. Debs.
8.125%, 04/28/23 500 584,375
-----------
610,563
-----------
FOOD -- 0.4%
American Stores Co.
Debs.
7.50%, 05/01/09 250 273,771
-----------
HEALTHCARE SERVICES --0.1%
FHP International Corp.
Sr. Notes
7.00%, 09/15/03 50 53,063
-----------
HOTELS & MOTELS -- 0.8%
Hilton Hotels Corp. Sr.
Notes
7.20%, 12/15/09 250 236,875
HMH Properties Co.
Guarantee Notes Cl-A
7.875%, 08/01/05 250 244,375
-----------
481,250
-----------
INSURANCE -- 0.9%
Equitable Companies,
Inc. Sr. Notes
9.00%, 12/15/04 500 593,125
-----------
METALS & MINING -- 0.4%
Haynes International,
Inc. Sr. Notes
11.625%, 09/01/04 250 250,625
-----------
OIL & GAS -- 2.0%
Atlantic Richfield Co.
Debs.
10.875%, 07/15/05 500 646,875
Belco Oil & Gas Corp.
Sr. Sub. Notes Cl-B
8.875%, 09/15/07 100 86,000
Canadian Forest Oil Ltd.
Co. Guarantee Notes
8.75%, 09/15/07 250 223,125
Deeptech International,
Inc. Sr. Notes
12.00%, 12/15/00 100 110,000
Gulf Canada Resources
Ltd. Sr. Notes
8.25%, 03/15/17 100 95,375
Noram Energy Corp. Sub.
Debs. [CVT]
6.00%, 03/15/12 100 94,625
-----------
1,256,000
-----------
</TABLE>
89
AMERICAN SKANDIA MASTER TRUST
<PAGE> 92
ASMT INVESCO
EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
PRINTING & PUBLISHING -- 0.2%
Affiliated Newspaper
Investments, Inc. Sr.
Disc. Notes [STEP]
12.01%, 07/01/06 $ 100 $ 96,375
-----------
RETAIL & MERCHANDISING -- 0.8%
Dayton-Hudson Corp.
Notes
5.875%, 11/01/08 500 497,500
-----------
TELECOMMUNICATIONS -- 3.9%
360 Communications Co.
Notes
6.65%, 01/15/08 250 263,438
Centel Capital Corp.
Debs.
9.00%, 10/15/19 250 316,875
Intermedia
Communications, Inc.
Sr. Notes Cl-B
8.50%, 01/15/08 250 236,250
International CableTel,
Inc. Sr. Notes Cl-B
[STEP]
11.95%, 04/15/05 250 215,000
Level 3 Communications,
Inc. Sr. Notes
9.125%, 05/01/08 250 236,250
McLeodUSA, Inc. Sr.
Notes 144A
9.50%, 11/01/08 250 256,250
MetroNet Communications
Corp. Sr. Notes
12.00%, 08/15/07 350 374,500
NEXTLINK Communications,
Inc. Sr. Notes
9.625%, 10/01/07 50 47,250
WorldCom, Inc. Sr. Notes
6.40%, 08/15/05 500 520,000
-----------
2,465,813
-----------
UTILITIES -- 5.1%
Boston Edison Co. Debs.
8.25%, 09/15/22 250 265,938
7.80%, 03/15/23 25 25,813
Cleveland Electric
Illuminating Co. First
Mtge. Cl-B
8.375%, 12/01/11 100 102,750
Coda Energy, Inc. Co.
Guarantee Notes Cl-B
10.50%, 04/01/06 150 141,000
Commonwealth Edison
First Mtge.
8.00%, 05/15/08 400 452,500
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Connecticut Light &
Power Co. First Mtge.
Cl-D
7.875%, 10/01/01 $ 100 $ 106,625
Consumers Energy Co.
First Mtge.
7.375%, 09/15/23 500 492,500
El Paso Electric Co.
First Mtge. Cl-C
8.25%, 02/01/03 200 218,000
Gulf States Utilities
First Mtge.
8.70%, 04/01/24 250 268,438
Metropolitan Edison Co.
First Mtge. Medium
Term Notes Cl-B
8.15%, 01/30/23 75 82,786
New York State Electric
& Gas Corp. First
Mtge.
8.30%, 12/15/22 200 211,750
Pacific Gas & Electric
Co. First Mtge. Cl-92B
8.375%, 05/01/25 490 532,263
Potomac Electric Power
Co. First Mtge.
6.25%, 10/15/04 100 107,625
Western Massachusetts
Electric Co. First
Mtge. Cl-V
7.75%, 12/01/02 250 253,693
-----------
3,261,681
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $11,386,834) 11,203,517
-----------
U.S. TREASURY OBLIGATIONS -- 3.4%
U.S. Treasury Notes
5.625%, 11/30/99 250 253,308
5.50%, 05/31/03 1,000 1,048,066
6.625%, 05/15/07 250 283,888
6.125%, 08/15/07 500 552,273
-----------
(Cost $2,025,351) 2,137,535
-----------
COMMERCIAL PAPER -- 7.9%
American Express Credit
Corp.
5.184%, 11/02/98 1,500 1,500,000
General Electric Capital
Services
5.435%, 11/05/98 1,000 1,000,000
Heller Financial, Inc.
5.285%, 11/04/98 2,500 2,500,000
-----------
(Cost $5,000,000) 5,000,000
-----------
</TABLE>
90
<PAGE> 93
ASMT INVESCO
EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.9%
Temporary Investment
Cash Fund 279,826 $ 279,826
Temporary Investment
Fund 279,826 279,826
-----------
(Cost $559,652) 559,652
-----------
TOTAL INVESTMENTS -- 100.4%
(Cost $61,294,986) 63,717,982
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.4%) (267,755)
-----------
NET ASSETS -- 100.0% $63,450,227
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing securities.
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 year, these securities amounted
to 0.4% of net assets.
See Notes to Financial Statements.
91
AMERICAN SKANDIA MASTER TRUST
<PAGE> 94
ASMT PIMCO
TOTAL RETURN BOND PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 42.2%
Federal Home Loan
Mortgage Corp.
4.775%, 12/23/98 $ 200 $ 198,625
5.125%, 11/12/98 100 99,843
6.00%, 04/01/28-
07/01/28 7,381 7,304,370
6.00%, 01/14/29 [TBA] 900 888,894
6.50%, 12/15/23 205 201,090
7.00%, 02/15/27 3,370 3,347,781
8.50%, 08/01/24-
12/01/25 1,492 1,555,487
-----------
13,596,090
-----------
Federal National Mortgage Assoc.
6.131%, 12/01/27-
05/01/36 [VR] 867 874,147
-----------
Government National Mortgage
Assoc.
6.50%, 01/21/29 [TBA] 4,000 4,038,120
6.68%, 01/01/09 956 970,684
6.875%, 10/15/38-
02/04/40 5,000 5,076,482
7.00%, 11/15/27 467 478,103
-----------
10,563,389
-----------
(Cost $24,899,424) 25,033,626
-----------
U.S. TREASURY OBLIGATIONS -- 27.8%
U.S. Treasury Bonds
12.00%, 08/15/13 8,800 13,582,476
8.00%, 11/15/21 1,000 1,340,348
6.75%, 08/15/26 1,300 1,561,591
-----------
(Cost $16,273,656) 16,484,415
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 9.9%
Countrywide Home Loans
Series 1998-18 Cl-2A3
6.75%, 08/25/28 1,000 967,501
First Plus Home Loan
Trust Series 1998-5
Cl-A3 [VR]
6.06%, 09/10/11 1,000 997,500
PNC Mortgage Securities
Corp. Series 1998-10
Cl-1A6
6.50%, 10/25/28 2,000 1,940,938
Structured Asset
Securities Corp.
5.72%, 10/25/28 2,000 1,996,875
-----------
(Cost $5,906,447) 5,902,814
-----------
CORPORATE OBLIGATIONS -- 19.0%
CONSUMER GOODS & SERVICES -- 3.5%
Sears Roebuck Acceptance
Corp. Medium Term Notes
Cl-2
6.86%, 08/06/01 2,000 2,077,500
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ----------------------------------------------------
- ----------------------------------------------------
<S> <C> <C>
FINANCIAL -- BANK & TRUST -- 1.6%
Bankers Trust Corp.
Unsubordinated Notes
[VR]
5.819%, 01/30/02 $1,000 $ 949,280
-----------
FINANCIAL SERVICES -- 10.6%
Bear Stearns Companies,
Inc. Medium Term Notes
Cl-B [VR]
5.782%, 02/16/01 1,000 996,360
Bear Stearns Companies,
Inc. Unsubordinated
Medium Term Notes [VR]
5.875%, 03/18/05 500 501,793
Beneficial Corp. Medium
Term Notes Cl-H [FRN]
5.588%, 01/09/02 500 499,285
Caterpillar Financial
Services Corp., Inc.
Medium Term Notes Cl-F
[FRN]
5.737%, 06/08/00 500 500,445
Ford Motor Credit Co.
Notes [FRN]
5.827%, 09/03/01 1,000 994,241
Lehman Brothers Holdings,
Inc. Medium Term Notes
[FRN]
6.281%, 12/01/00 800 808,240
Morgan Stanley, Dean
Witter & Co. Unsecured
Sr. Sub. Notes
5.875%, 03/11/03 1,000 964,679
New England Educational
Loan Marketing Assoc.
Medium Term Notes Cl-B
[FRN]
5.857%, 06/11/01 1,000 999,180
-----------
6,264,223
-----------
TELECOMMUNICATIONS -- 1.7%
WorldCom, Inc. Sr. Notes
6.125%, 08/15/01 1,000 1,020,000
-----------
UTILITIES -- 1.6%
Long Island Lighting
Corp. Debs.
9.00%, 11/01/22 800 952,000
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $11,296,300) 11,263,003
-----------
FOREIGN BONDS -- 1.3%
Republic of the
Philippines Cl-B
6.50%, 12/01/17
(Cost $743,415) 1,000 806,588
-----------
</TABLE>
92
<PAGE> 95
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 13.2%
Caisse D'amortissement de
la Dette Sociale
5.17%, 11/30/98 $ 900 $ 896,252
Coca-Cola Co.
5.24%, 11/06/98 600 599,563
Du Pont, (E.I.) De
Nemours & Co.
5.22%, 11/20/98 600 598,347
5.05%, 11/25/98 700 697,643
General Electric Capital
Corp.
5.09%, 12/18/98 1,500 1,490,032
General Motors Acceptance
Corp.
5.25%, 11/04/98 500 499,781
5.20%, 11/16/98 400 399,133
International Business
Machines Corp.
5.48%, 11/24/98 100 99,659
Kingdom of Sweden
5.09%, 12/09/98 400 397,851
New Center Asset Trust
5.48%, 12/16/98 300 298,221
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ----------------------------------------------------
- ----------------------------------------------------
<S> <C> <C>
Procter & Gamble Co.
5.30%, 11/04/98 $ 700 $ 699,691
5.14%, 12/28/98 500 495,936
SBC Communications, Inc.
5.29%, 11/06/98 700 699,485
-----------
(Cost $7,871,304) 7,871,594
-----------
SHARES
------
SHORT-TERM INVESTMENTS -- 1.0%
Temporary Investment Cash
Fund 282,567 282,567
Temporary Investment Fund 282,567 282,567
-----------
(Cost $565,134) 565,134
-----------
TOTAL INVESTMENTS -- 114.4%
(Cost $67,555,680) 67,927,174
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (14.4%) (8,552,008)
-----------
NET ASSETS -- 100.0% $59,375,166
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
See Notes to Financial Statements.
93
AMERICAN SKANDIA MASTER TRUST
<PAGE> 96
ASMT JPM
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 57.3%
Federal Home Loan Bank
5.61%, 06/18/99 $ 1,000 $ 1,000,025
-----------
Federal Home Loan
Mortgage Corp.
5.10%, 11/30/98 8,000 7,967,133
5.29%, 12/10/98 10,000 9,942,692
-----------
17,909,825
-----------
Student Loan Marketing
Assoc.
5.42%, 11/02/98 9,165 9,163,620
-----------
(Cost $28,073,470) 28,073,470
-----------
CORPORATE OBLIGATIONS -- 15.4%
BEVERAGES -- 1.2%
PepsiCo, Inc. Medium
Term Notes [FRN]++
5.497%, 11/19/98 600 599,460
-----------
FINANCIAL -- BANK & TRUST -- 11.7%
American Express
Centurion Notes [FRN]
5.565%, 11/13/98++ 750 750,000
Banc One Corp. Medium
Term Notes [FRN]
5.657%, 11/04/98++ 1,000 999,990
Bankers Trust Co.
5.57%, 11/16/98++ 500 499,822
First Union National
Bank Sr. Notes [FRN]
5.208%, 01/25/99++ 1,500 1,500,000
Key Bank NA Notes [FRN]
5.585%, 11/02/98++ 1,000 999,795
NationsBank Corp. Sr.
Medium Term Notes
Cl-F [FRN]
5.747%, 11/19/98++ 1,000 1,000,619
-----------
5,750,226
-----------
FINANCIAL SERVICES -- 2.5%
CIT Group, Inc. Sr.
Medium Term Notes
[FRN]
4.72%, 01/20/99++ 1,200 1,200,113
-----------
TOTAL CORPORATE OBLIGATIONS
(Cost $7,549,799) 7,549,799
-----------
COMMERCIAL PAPER -- 26.4%
FARMING & AGRICULTURE -- 2.0%
Monsanto Co.+
5.00%, 04/06/99 1,000 978,333
-----------
FINANCIAL -- BANK & TRUST -- 11.0%
British Gas Capital
5.49%, 11/06/98 600 599,543
NationsBank Corp.
5.50%, 02/02/99 500 492,896
</TABLE>
<TABLE>
<CAPTION>
PAR
(000) VALUE
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Rabobank Nederland
5.73%, 11/02/98 $ 1,500 $ 1,499,761
5.625%, 02/03/99 600 599,990
Suntrust Bank, Inc.
5.41%, 12/02/98 1,000 995,341
U.S. Bancorp
5.08%, 11/23/98 1,215 1,211,228
-----------
5,398,759
-----------
FINANCIAL SERVICES -- 13.4%
Associates Corp. of
North America
5.03%, 02/16/99 1,500 1,477,575
Diageo Capital PLC+
5.50%, 11/04/98 2,000 1,999,083
Ford Motor Credit Corp.
5.49%, 11/06/98 300 299,771
General Electric
Capital Corp.
5.41%, 12/16/98 1,500 1,489,856
Province of Quebec
5.48%, 12/30/98 500 495,510
San Paolo US Financial
Co.
5.49%, 02/08/99 800 787,922
-----------
6,549,717
-----------
TOTAL COMMERCIAL PAPER
(Cost $12,926,809) 12,926,809
-----------
SHARES
-------
SHORT-TERM INVESTMENTS -- 0.0%
Temporary Investment
Cash Fund 2,276 2,276
Temporary Investment
Fund 2,276 2,276
-----------
(Cost $4,552) 4,552
-----------
TOTAL INVESTMENTS -- 99.1%
(Cost $48,554,630) 48,554,630
OTHER ASSETS LESS
LIABILITIES -- 0.9% 451,167
-----------
NET ASSETS -- 100.0% $49,005,797
===========
</TABLE>
-------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
+ Security is restricted as to resale and may not be resold except to qualified
institutional buyers. At the end of the year, these securities amounted to
6.1% of net assets.
++ Maturity date reflects the next interest rate change date.
See Notes to Financial Statements.
94
<PAGE> 97
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
FDR -- Federal Depositary Receipt
FRN -- Floating Rate Note(1)
GDR -- Global Depositary Receipt
REIT -- Real Estate Investment Trust
STEP -- Stepped Coupon Bond(2)
TBA -- To be Announced Security
VR -- Variable Rate Bond(1)
COUNTRIES/CURRENCIES:
DEM -- Germany/German Deutschemark
GBP -- United Kingdom/British Pound
</TABLE>
(1) Rates shown for variable and floating
rate securities are the coupon rates as of
October 31, 1998.
(2) Rates shown are the effective yields
at purchase date.
95
AMERICAN SKANDIA MASTER TRUST
<PAGE> 98
OCTOBER 31, 1998
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT ASMT PIMCO
T. ROWE PRICE ASMT JANUS ASMT INVESCO TOTAL ASMT JPM
INTERNATIONAL CAPITAL EQUITY RETURN MONEY
EQUITY GROWTH INCOME BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Securities at Value
(A) $14,283,754 $150,018,609 $63,717,982 $67,927,174 $48,554,630
Cash 802,964 42,713 951 120,155 --
Receivable For:
Securities Sold 2,995 458,785 111,122 4,936,336 --
Dividends and Interest 41,277 54,477 345,377 574,690 81,945
Contributions by Feeder Funds 105,642 4,180,019 1,136,160 2,171,652 1,369,301
Deferred Organization Costs 18,530 18,530 18,616 18,616 18,626
----------- ------------ ----------- ----------- -----------
Total Assets 15,255,162 154,773,133 65,330,208 75,748,623 50,024,502
----------- ------------ ----------- ----------- -----------
LIABILITIES:
Cash Overdraft -- -- -- -- 13,174
Payable to Investment Manager 11,694 111,256 36,774 29,708 19,808
Unrealized Depreciation on Foreign
Currency Exchange Contracts 171 -- -- -- --
Payable For:
Securities Purchased 103,891 -- 1,558,458 15,985,276 --
Withdrawals by Feeder Funds 75,992 389,274 244,511 342,182 973,095
Accrued Expenses and Other
Liabilities 42,631 34,111 40,238 16,291 12,628
----------- ------------ ----------- ----------- -----------
Total Liabilities 234,379 534,641 1,879,981 16,373,457 1,018,705
----------- ------------ ----------- ----------- -----------
NET ASSETS $15,020,783 $154,238,492 $63,450,227 $59,375,166 $49,005,797
=========== ============ =========== =========== ===========
(A) Investments at Cost $14,409,218 $133,975,442 $61,294,986 $67,555,680 $48,554,630
=========== ============ =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
96
<PAGE> 99
FOR THE YEAR ENDED OCTOBER 31, 1998
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT ASMT PIMCO
T. ROWE PRICE ASMT JANUS ASMT INVESCO TOTAL ASMT JPM
INTERNATIONAL CAPITAL EQUITY RETURN MONEY
EQUITY GROWTH INCOME BOND MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 33,171 $ 622,904 $ 634,864 $1,432,879 $906,403
Dividends 179,483 224,372 448,990 -- --
Foreign Taxes Withheld (30,741) (11,021) (30,475) (3,705) (76)
--------- ----------- ---------- ---------- --------
Total Investment Income 181,913 836,255 1,053,379 1,429,174 906,327
--------- ----------- ---------- ---------- --------
EXPENSES:
Advisory Fees 94,058 578,304 244,316 151,673 83,674
Shareholder Servicing Fees 4,451 4,451 4,451 4,450 4,451
Administration and Accounting
Fees 57,501 95,536 70,834 60,834 6,611
Custodian Fees 44,128 15,182 12,416 7,700 7,600
Professional Fees 3,755 17,030 11,575 8,025 5,050
Organization Costs 4,770 4,770 4,770 4,770 4,769
Trustees' Fees 2,021 11,138 6,669 4,936 3,486
Miscellaneous Expenses 34,213 9,571 11,616 7,588 4,876
--------- ----------- ---------- ---------- --------
Total Expenses 244,897 735,982 366,647 249,976 120,517
--------- ----------- ---------- ---------- --------
Net Investment Income (Loss) (62,984) 100,273 686,732 1,179,198 785,810
--------- ----------- ---------- ---------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net Realized Gain (Loss) on:
Securities (153,997) (5,429,133) (510,100) 668,243 (733)
Foreign Currency Transactions 3,864 (545) -- -- --
--------- ----------- ---------- ---------- --------
Net Realized Gain (Loss) (150,133) (5,429,678) (510,100) 668,243 (733)
--------- ----------- ---------- ---------- --------
Net Change in Unrealized
Appreciation (Depreciation)
on:
Securities 67,804 16,036,242 2,366,592 311,039 --
Translation of Assets and
Liabilities Denominated in
Foreign Currencies 8,947 (32) -- -- --
--------- ----------- ---------- ---------- --------
Net Change in Unrealized
Appreciation 76,751 16,036,210 2,366,592 311,039 --
--------- ----------- ---------- ---------- --------
Net Gain (Loss) on Investments (73,382) 10,606,532 1,856,492 979,282 (733)
--------- ----------- ---------- ---------- --------
Net Increase (Decrease) in Net
Assets Resulting from
Operations $(136,366) $10,706,805 $2,543,224 $2,158,480 $785,077
========= =========== ========== ========== ========
</TABLE>
See Notes to Financial Statements.
97
AMERICAN SKANDIA MASTER TRUST
<PAGE> 100
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT T. ROWE PRICE ASMT JANUS
INTERNATIONAL EQUITY CAPITAL GROWTH
PORTFOLIO PORTFOLIO
------------------------------- -------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997(1) 1998 1997(1)
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (62,984) $ (17,596) $ 100,273 $ 7,254
Net Realized Gain (Loss) on Investments (150,133) 518 (5,429,678) 10,693
Net Change in Unrealized Appreciation
(Depreciation) on Investments 76,751 (194,904) 16,036,210 6,925
----------- ---------- ------------ -----------
Net Increase (Decrease) in Net Assets Resulting
from Operations (136,366) (211,982) 10,706,805 24,872
----------- ---------- ------------ -----------
CAPITAL TRANSACTIONS:
Contributions by Feeder Funds 17,837,166 4,291,113 159,785,442 9,561,074
Withdrawals by Feeder Funds (6,177,388) (601,760) (24,236,532) (1,623,169)
----------- ---------- ------------ -----------
Net Increase in Net Assets from Capital
Transactions 11,659,778 3,689,353 135,548,910 7,937,905
----------- ---------- ------------ -----------
Total Increase in Net Assets 11,523,412 3,477,371 146,255,715 7,962,777
NET ASSETS:
Beginning of Period 3,497,371 20,000 7,982,777 20,000
----------- ---------- ------------ -----------
End of Period $15,020,783 $3,497,371 $154,238,492 $ 7,982,777
=========== ========== ============ ===========
</TABLE>
(1) Commenced operations on June 10, 1997.
See Notes to Financial Statements.
98
<PAGE> 101
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT INVESCO ASMT PIMCO ASMT JPM
EQUITY INCOME TOTAL RETURN BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------------------------- ------------------------------- -------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1998 1997(2) 1998 1997(2) 1998 1997(3)
---------------- ------------ ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income
(Loss) $ 686,732 $ 15,296 $ 1,179,198 $ 24,066 $ 785,810 $ 2,325
Net Realized Gain
(Loss) on Investments (510,100) (18,651) 668,243 6,883 (733) 32
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments 2,366,592 56,404 311,039 60,455 -- --
------------ ---------- ------------ ----------- ------------ -----------
Net Increase (Decrease)
in Net Assets Resulting
from Operations 2,543,224 53,049 2,158,480 91,404 785,077 2,357
------------ ---------- ------------ ----------- ------------ -----------
CAPITAL TRANSACTIONS:
Contributions by Feeder
Funds 69,154,397 6,911,291 67,718,213 6,540,625 103,736,368 3,320,611
Withdrawals by Feeder
Funds (14,750,075) (481,659) (15,526,070) (1,627,486) (57,510,543) (1,348,073)
------------ ---------- ------------ ----------- ------------ -----------
Net Increase in Net
Assets from Capital
Transactions 54,404,322 6,429,632 52,192,143 4,913,139 46,225,825 1,972,538
------------ ---------- ------------ ----------- ------------ -----------
Total Increase in
Net Assets 56,947,546 6,482,681 54,350,623 5,004,543 47,010,902 1,974,895
NET ASSETS:
Beginning of Period 6,502,681 20,000 5,024,543 20,000 1,994,895 20,000
------------ ---------- ------------ ----------- ------------ -----------
End of Period $ 63,450,227 $6,502,681 $ 59,375,166 $ 5,024,543 $ 49,005,797 $ 1,994,895
============ ========== ============ =========== ============ ===========
</TABLE>
(2) Commenced operations on June 18, 1997.
(3) Commenced operations on June 19, 1997.
See Notes to Financial Statements.
99
AMERICAN SKANDIA MASTER TRUST
<PAGE> 102
SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Net Assets at Portfolio Ratio of Net Investment
Ended End of Period Turnover Ratio of Expenses to Income (Loss) to
October 31, (in 000's) Rate Average Net Assets(4) Average Net Assets(4)
----------- ------------- --------- --------------------- -----------------------
<S> <C> <C> <C> <C> <C>
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO: 1998 $ 15,021 20% 2.60% (0.67)%
- --------------------------------------
- --------------------------------------
1997(1) 3,497 1% 6.26% (3.78)%
ASMT JANUS
CAPITAL GROWTH PORTFOLIO: 1998 $154,238 77% 1.27% 0.17%
- --------------------------------------
- --------------------------------------
1997(1) 7,983 83% 2.79% 0.69%
ASMT INVESCO
EQUITY INCOME PORTFOLIO: 1998 $ 63,450 70% 1.13% 2.11%
- --------------------------------------
- --------------------------------------
1997(2) 6,503 46% 2.66% 2.39%
ASMT PIMCO
TOTAL RETURN BOND PORTFOLIO: 1998 $ 59,375 418% 1.07% 5.05%
- --------------------------------------
- --------------------------------------
1997(2) 5,025 93% 2.22% 3.51%
ASMT JPM
MONEY MARKET PORTFOLIO: 1998 $ 49,006 N/A 0.72% 4.69%
- --------------------------------------
- --------------------------------------
1997(3) 1,995 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 for periods less than one year.
See Notes to Financial Statements.
100
<PAGE> 103
OCTOBER 31, 1998
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, 1998, 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 -- Portfolio 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. The amortized cost method values a security at its cost at the
time of purchase and thereafter assumes a constant amortization to maturity of
discount or premium. 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 accordance with procedures adopted by the
Board of Trustees. As of October 31, 1998, there were no securities valued in
accordance with such procedures.
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 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.
101
AMERICAN SKANDIA MASTER TRUST
<PAGE> 104
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 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 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-upon 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 bear 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 EXPENSES -- 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 Corporation for Capital Growth; INVESCO
Funds Group, Inc. 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
102
<PAGE> 105
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 are treated as partnerships for Federal income tax purposes.
Accordingly, each investor in the Portfolios is allocated its share of net
investment income and realized and unrealized gains and losses from investment
transactions. It is intended that the Portfolios are managed in such a way that
an investor is 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 year ended October 31, 1998, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
International Equity $ 14,021,718 $ 1,771,863
Capital Growth 143,874,128 36,757,084
Equity Income 70,483,631 20,832,269
Total Return Bond 58,355,955 29,119,902
</TABLE>
Purchases and sales of U.S. government securities, during the year ended
October 31, 1998, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
Total Return Bond $127,350,937 $85,862,076
Equity Income 2,516,748 490,234
</TABLE>
At October 31, 1998, 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>
NET
GROSS GROSS UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
International Equity $ 14,434,337 $ 1,089,582 $1,240,165 $ (150,583)
Capital Growth 134,147,098 16,592,654 721,143 15,871,511
Equity Income 61,296,547 4,489,700 2,068,265 2,421,435
Total Return Bond 67,555,680 546,057 174,563 371,494
Money Market 48,554,630 -- -- --
</TABLE>
103
AMERICAN SKANDIA MASTER TRUST
<PAGE> 106
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Investors and Board of Trustees
of American Skandia Master Trust:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the supplemental data present fairly, in all material
respects, the financial position of 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 of American Skandia Master Trust (the "Trust") at October 31, 1998,
the results of each of their operations, the changes in each of their net assets
and the supplemental data for each of the periods presented, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and supplemental data (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accouting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities owned at October 31, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
Dublin, Republic of Ireland
December 11, 1998
104
<PAGE> 107
[ASAF LOGO]
American Skandia Advisor Funds, Inc.
ANNUAL REPORT TO SHAREHOLDERS
October 31, 1998
ASAF
American Skandia Advisor Funds
[ASAF GRAPHIC]
Investment Tools
for Tomorrow
<PAGE> 108
[ASAF LOGO]
[ASAF GRAPHIC]
Table of Contents
AMERICAN SKANDIA ADVISOR FUNDS, INC.
Performance Information 1
Schedules of Investments 15
Financial Statements 46
AMERICAN SKANDIA MASTER TRUST
Schedules of Investments 79
Financial Statements 96
- - 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
- - ASAF Robertson Stephens Value + Growth Fund
- - ASAF Lord Abbett Growth and Income Fund
- - ASAF Janus Overseas Growth Fund
- - ASAF Marsico Capital Growth Fund
- - ASAF Neuberger&Berman Mid-Cap Growth Fund
- - ASAF Neuberger&Berman Mid-Cap Value Fund
- - 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
<PAGE> 109
[ASAF LOGO]
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
LIT CODE(ASAFANNU 10/98)2336
<PAGE> 110
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
[ASAF GRAPHIC]
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
PricewaterhouseCoopers LLP
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:
The Chase Manhattan Bank
New York, NY 11201
Legal Counsel
Werner & Kennedy
New York, NY 10019
