American Skandia Advisor Funds, Inc.
Supplement dated March 10, 1998 to the Prospectus dated December 31, 1997
How to Buy Shares
The section of the Prospectus entitled "How to Buy Shares -- Purchase
of Class A Shares" is amended by deleting the first sentence of the paragraph
headed "Purchases Subject to a Contingent Deferred Sales Charge ("CDSC")" on
page 56 and replacing it with the following:
There is no initial sales charge on purchases aggregating $1 million or
more of Class A shares of any one or more of the Funds.
ASAF Founders International Small Capitalization Fund
and ASAF Founders Small Capitalization Fund
Founders Asset Management, Inc., the Sub-advisor for the ASAF Founders
International Small Capitalization Fund and the ASAF Founders Small
Capitalization Fund, recently announced its agreement to be acquired by Mellon
Bank, N.A.
Accordingly, the section of the Prospectus entitled "Management of the
Funds - The Sub-advisors" is amended by adding the following after the last
paragraph on page 69:
Founders has recently announced its agreement to be acquired by Mellon
Bank, N.A. ("Mellon"), a wholly owned subsidiary of Mellon Bank
Corporation, a publicly owned multibank holding company which provides
a comprehensive range of financial products and services in domestic
and selected international markets. After the acquisition, Mellon will
own 90% of Founders Asset Management LLC, the successor firm to
Founders, with the remaining 10% held by certain Founders executives
and portfolio managers. It is not currently anticipated that the
acquisition would result in any change in Founders' services to the
ASAF Founders International Small Capitalization Fund and ASAF Founders
Small Capitalization Fund, or in the portfolio managers of the
Portfolios. The acquisition is expected to be completed in April 1998,
subject to certain conditions.
ASMT INVESCO Equity Income Portfolio
Effective May 1, 1998, all employees of INVESCO Trust Company ("ITC"),
the Sub-advisor for the ASMT INVESCO Equity Income Fund, that provide the Fund
with sub-advisory services will be made employees of INVESCO Funds Group, Inc
("INVESCO"). ITC, which is a wholly-owned subsidiary of INVESCO, will no longer
provide sub-advisory services to the Fund as of that date, and INVESCO will
thereafter provide those services. This change will in no way change the basis
upon which sub-advisory services are provided to the Fund, the cost of those
services to ASISI or the cost of investment management services to the Fund, or
the persons actually performing the portfolio management of the Fund.
Accordingly, effective May 1, 1998, all references to INVESCO Trust
Company in the Prospectus should be replaced with references to INVESCO Funds
Group, Inc. and the section of the Prospectus entitled "Management of the Funds
- - The Sub-advisors" is amended by replacing the fifth full paragraph on page 71
with the following:
INVESCO Funds Group, Inc. ("INVESCO"), 7800 East Union Avenue, P.O. Box
173706, Denver, Colorado, 80217-3706, serves as Sub-advisor for the
ASMT INVESCO Equity Income Fund. AMVESCAP PLC, the parent of INVESCO,
is one of the largest independent investment management businesses in
the world and managed approximately $192.2 billion of assets as of
December 31, 1997.
