<PAGE> 1
[AMERICAN SKANDIA ADVISOR FUNDS LOGO]
American Skandia Advisor Funds, Inc.
ANNUAL REPORT TO SHAREHOLDERS
October 31, 1999
ASAF
AMERICAN SKANDIA ADVISOR FUNDS
[STAR GRAPHICS]
Investment Tools
for Tomorrow
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[AMERICAN SKANDIA ADVISOR FUNDS LOGO]
[STAR GRAPHICS]
Table of Contents
<TABLE>
<S> <S>
AMERICAN SKANDIA ADVISOR FUNDS, INC.
Performance Information ........................................................................ 1
Schedules of Investments ....................................................................... 17
Financial Statements ........................................................................... 56
AMERICAN SKANDIA MASTER TRUST
Schedules of Investments ....................................................................... 95
Financial Statements ........................................................................... 114
</TABLE>
- - ASAF Founders International Small Capitalization Fund
- - ASAF Janus Small-Cap Growth Fund
- - ASAF T. Rowe Price Small Company Value Fund
- - ASAF American Century Strategic Balanced Fund
- - ASAF Federated High Yield Bond Fund
- - ASAF Oppenheimer Large-Cap 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> 3
October 31, 1999
Dear Fellow Shareholder:
The dawn of a new millennium is upon us and, as 1999 draws to a close, we at
American Skandia look to the future with excitement. The U.S. economy continues
to move ahead. Inflation at the consumer level has been well behaved, and
despite the fact that interest rates have been raised three times this year, the
Dow Jones Industrial Average reaches for new heights. As of this writing, the
Dow has risen over 1,500 points for the year.
The American Skandia Advisor Funds have also enjoyed substantial growth, both in
assets and in fund offerings. Assets of the funds, which began the fiscal year
with less than $600 million, surpassed $3 billion on September 28, 1999.
In addition, on November 1, 1999, the American Skandia Advisor Fund family grew
to include three new funds managed by three of the most respected money managers
in the industry: A I M Capital Management, Inc. (AIM International Equity),
Bankers Trust Company (Bankers Trust Managed Index 500), and Massachusetts
Financial Services Company (MFS Growth with Income). With the addition of these
new funds, American Skandia Advisor Funds now offers 19 funds, managed by 16 of
the best money managers in the industry, across 12 different Morningstar
categories -- all in one fund family.
Looking into the new millennium, you can expect further expansion of the
American Skandia Advisor Funds with new fund additions as well as the
introduction of a new asset allocation program.
As always, we appreciate your confidence and welcome any comments or questions
you may have.
Sincerely,
/s/ WADE A. DOKKEN
- ------------------
WADE A. DOKKEN
Chairman
American Skandia Investment Services, Incorporated
This letter is authorized for use only with shareholders of the American Skandia
Advisor Funds. The American Skandia Advisor Funds are distributed by American
Skandia Marketing, Incorporated, located at One Corporate Drive, Shelton, CT
06484.
<PAGE> 4
AMERICAN SKANDIA ADVISOR FUNDS, INC.
PERFORMANCE INFORMATION AND COMMENTARY
- --------------------------------------------------------------------------------
The following pages present information on the investment performance of
each Fund, other than the JPM Money Market Fund, 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.
S&P 400 INDEX -- The Standard & Poor's Mid-Cap 400 Index is an unmanaged
capitalization-weighted index of 400 domestic stocks chosen for market size
(median market capitalization of about $1.2 billion as of December 1995).
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,
Australasia, 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
<PAGE> 5
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF Founders International
Small Capitalization Fund's Class A shares had an NAV total return of 32.04%,
compared to a return on the unmanaged MSCI EAFE Index of 23.03%.
Tracy Stouffer became portfolio manager for the Fund on July 23, 1999.
Throughout the third quarter, the Fund was restructured and repositioned to
reflect new growth opportunities in the stock markets around the world. The
single biggest shift during this process was in the Fund's exposure in Japan,
which is now the largest single country weighting. Founders expects continued
recovery in Japanese domestic demand and a strong yen, and believes that small
companies there are particularly well-poised to benefit from this environment.
They have also added select promising companies from other Asian nations,
including South Korea, Singapore, Hong Kong, China, and Indonesia. Founders
anticipates that the assets of the Fund will usually be diversified among
between 175 and 225 securities, across 25 to 40 countries.
Looking forward, Founders sees outsourcing as a strong worldwide trend, as
companies focus more sharply on their core competencies and begin to outsource
operational and developmental activities. One area Founders has focused on is
the changing nature of employment in Japan, where they have invested in
companies they believe may benefit from rising unemployment in Japan.
<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 9781 9890
4/30/99 11534 11402
10/31/99 12910 12169
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 32.04% 25.44% 31.38% 25.38% 31.41% 30.41% 31.54% 28.83%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 14.55% 11.96% 13.99% 12.48% 13.96% 13.96% 13.96% 13.72%
- -----------------------------------------------------------------------------------------------------------------------------
</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> 6
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF JANUS SMALL-CAP GROWTH FUND
(Formerly the ASAF Founders Small Capitalization Fund)
- --------------------------------------------------------------------------------
The ASAF Janus Small-Cap Growth Fund's Class A shares had an NAV total return of
87.80% for the fiscal year ended October 31, 1999, as compared to a return of
14.87% for the unmanaged Russell 2000 Index.
On January 1, 1999 Janus Capital Corporation replaced Founders Asset Management
as the Fund's sub-advisor and the name of the Fund changed to the ASAF Janus
Small-Cap Growth Fund. While small and medium sized stocks gained ground over
the past 12 months, they failed to keep pace with the impressive returns in
large-cap stocks. This challenging environment for small-cap investors favored
Janus' company-focused stock-picking approach.
Software developer Phone.com was one of the Fund's best performers during the
period. Phone.com's software connects wireless phone subscribers to the
Internet, offering them mobile access to applications as diverse as e-mail or
driving directions. Holdings of radio stocks also contributed positively to
performance. Janus concentrated on radio companies that have the opportunity to
consolidate niche markets. For example, Citadel Communications has purchased
stations in small- to mid-size markets, where it faces less aggressive
competition for acquisitions.
Attributes Janus looks for when researching companies include defining products
and services capable of propelling those businesses to the top spots within
their respective markets. Over the last year Janus has compiled a team comprised
of four analysts working full-time on small-cap research, allowing them to sift
through more ideas to find undiscovered potential small-cap gems.
<TABLE>
<CAPTION>
FUND'S CLASS A SHARES AT POP RUSSELL 2000 SMALL STOCK INDEX
---------------------------- ------------------------------
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9443 10496
4/30/98 10517 11740
10/31/98 8645 9252
4/30/99 12217 10654
10/31/99 16230 10628
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 87.80% 78.39% 86.73% 80.73% 86.64% 85.64% 86.53% 85.20%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 26.76% 23.89% 26.07% 24.73% 26.16% 26.16% 26.13% 26.21%
- -----------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 7
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF T. Rowe Price Small Company
Value Fund's Class A shares had an NAV total return of 0.86%, compared with a
return of 14.87% for the unmanaged Russell 2000 Index. The Fund's return
reflected the difficult environment for small-cap value stocks. For the year the
Russell 2000 Value Index returned 0.72%, compared to a return of 29.29% for the
Russell 2000 Growth Index.
Industry sectors that contributed positively to Fund returns for the period
included financial, basic materials, and technology. Weaker sectors included
consumer nondurables, consumer services, consumer cyclicals, and business
services and transportation. T. Rowe Price's strategy remained unchanged:
relying on firsthand research to uncover companies with competent management,
proven business strategies, and solid fundamentals, among other things. They
look for stocks that are out-of-favor, but try to identify catalysts that should
increase their value. Reflecting the extraordinary values represented by many of
these well-managed companies with good business niches, the pace of takeovers
and acquisitions during the year was notable. Portfolio holdings across many
industries, including Furon, Holophane, and Juno Lighting were acquired,
contributing many of the Fund's best gains.
Small-cap value stocks have been generally out of favor for nearly two years,
with the result that relative valuations are at or near record lows. While T.
Rowe Price cannot tell when a change in the cycle may occur, they believe that
at some point investors will take advantage of the extremely attractive
valuations of good companies, as corporate buyers are doing now.
<TABLE>
<CAPTION>
FUND'S CLASS A SHARES AT POP RUSSELL 2000 SMALL STOCK INDEX
---------------------------- ------------------------------
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9937 10496
4/30/98 10778 11740
10/31/98 8434 9252
4/30/99 8659 10654
10/31/99 8503 10628
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 0.86% -4.23% 0.45% -5.55% 0.45% -0.55% 0.45% -3.03%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 -4.77% -6.92% -5.27% -6.96% -5.27% -5.27% -5.27% -5.90%
- -----------------------------------------------------------------------------------------------------------------------------
</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> 8
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF American Century Strategic
Balanced Fund's Class A shares had an NAV total return of 19.10%, compared to a
return of 14.64% for the unmanaged blended benchmark index (60% S&P 500 Index,
40% Lehman Brothers Government/Corporate Bond Index).
The Fund's equity portfolio outperformed the S&P 500 during the year. On May 1,
1999 American Century repositioned the equity portion of the Fund. The Fund's
equity holdings shifted from a predominantly growth style to a core quantitative
style. Going forward the Fund will continue to be managed by American Century in
a core quantitative style. Growth stocks continued to outperform value stocks
for the year. Strong stock selection and an overweighting compared to the S&P
500 among shares in the technology sector boosted performance. Two other sectors
also added to the Fund's strong performance relative to the benchmark, consumer
non-durables and materials & services.
The Fund's fixed-income portfolio managed a modestly positive return for the
year, thanks to interest income. The Federal Reserve raised short-term interest
rates in late June and late August, which resulted in increases in longer-term
bond yields as well. As a result, bond prices fell slightly, but the interest
payments enabled all but the longest-term bonds to have overall returns on the
plus side. As uncertainty about U.S. economic conditions grew, the gap widened
between Treasury bond yields and the yields of other bonds, such as corporate
bonds and mortgage-backed securities. American Century took advantage of this
situation, expanding the Fund's holdings of corporate, mortgage-backed, and
asset-backed securities.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP Blended Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 9491 9860
4/30/98 10394 11308
10/31/98 10433 11621
4/30/99 12159 13123
10/31/99 12420 13322
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 19.10% 13.17% 18.46% 12.46% 18.26% 17.26% 18.48% 15.44%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 12.61% 10.06% 11.98% 10.43% 11.94% 11.94% 11.94% 11.64%
- -----------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 9
ASAF FEDERATED HIGH
YIELD BOND FUND
- --------------------------------------------------------------------------------
The ASAF Federated High Yield Bond Fund's Class A shares had an NAV total return
of 5.70% for the fiscal year ended October 31, 1999, compared to a return of
4.48% for the unmanaged Merrill Lynch High Yield Index.
The Fund's positive performance relative to the index was the result of several
factors. The Fund's overweight in the telecommunication, broadcasting and cable
TV sectors positively impacted performance. These sectors turned in strong
returns based on good operating performance and substantial merger and
acquisition activity. The Fund also experienced a lower default rate than the
market as a whole. The Fund's overweight in zero coupon step-up securities also
positively impacted returns. On the negative side, the Fund was underweight the
energy sector, which outperformed as energy prices rose.
For the balance of 1999 and into 2000, Federated believes high yield bonds offer
attractive potential, given strong domestic economic growth and very attractive
yield spreads. These two factors together typically indicate strong relative
return potential. However, the technical environment may prove challenging
short-term as Y2K concerns negatively impact the supply demand balance in the
market. Also, default rates will most likely remain above average into early
2000. However, Federated believes most securities that will default are
currently trading at depressed levels, reflecting this possibility. From a
portfolio perspective, they continue to be overweight the telecommunications
sector, given its powerful secular growth characteristics.
[LINE GRAPH]
<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 9714 10318
4/30/99 10806 11079
10/31/99 10271 10780
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 5.70% 1.17% 5.05% -0.79% 5.05% 4.08% 5.06% 1.85%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 3.14% 1.19% 2.64% 1.06% 2.62% 2.62% 2.66% 2.23%
- -----------------------------------------------------------------------------------------------------------------------------
</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).
6
<PAGE> 10
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF OPPENHEIMER LARGE-CAP
GROWTH FUND (Formerly the ASAF Robertson Stephens Value + Growth Fund)
- --------------------------------------------------------------------------------
The ASAF Oppenheimer Large-Cap Growth Fund's Class A shares had an NAV total
return of 30.65% for the fiscal year ended October 31, 1999, compared to a
return of 25.66% on the unmanaged S&P 500 Index.
On December 31, 1998, OppenheimerFunds, Inc. replaced Robertson, Stephens &
Company Investment Management as the Fund's sub-advisor and the name of the Fund
changed to the ASAF Oppenheimer Large-Cap Growth Fund. Early in 1999,
Oppenheimer began to reposition the Fund for stronger growth. They became
willing to pay more for a company's stock if they were confident that the
company's prospects for rapid growth justified that price. They also turned the
focus away from relatively low-growth sectors, such as basic industries,
industrials, commodity products and transportation, and instead looked toward
traditional growth sectors.
The Fund's largest holdings focused on leading technology companies, consumer
cyclical companies positioned to benefit from continued high rates of consumer
spending, and biotechnology concerns with new, profitable and novel therapies.
Technology has been Oppenheimer's single largest area of investment. Their goal
has been to position the Fund in the areas of technology that they anticipate
will perform the best over the long term.
Oppenheimer believes that, with inflation and interest rates likely to remain in
check, the outlook for growth investing remains favorable. Their investment
approach is designed to identify fast-growing companies through disciplined,
company-by-company analysis. . . . . companies which they believe the Fund can
grow with over the long term.
[LINE GRAPH]
<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 11508
10/31/98 9918 11463
4/30/99 11828 14021
10/31/99 12953 14405
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 30.65% 24.11% 29.91% 23.91% 29.90% 28.90% 29.78% 27.02%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 12/31/97 18.46% 15.16% 18.03% 15.63% 17.84% 17.84% 17.84% 17.06%
- -----------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 11
ASAF LORD ABBETT GROWTH
AND INCOME FUND
- --------------------------------------------------------------------------------
The ASAF Lord Abbett Growth and Income Fund's Class A shares had an NAV total
return of 17.72% for the fiscal year ended October 31, 1999. During the same
time frame, the unmanaged S&P 500 Index returned 25.66% and growth stocks
continued to outperform value stocks. The S&P 500 Barra Growth Index returned
31.56% compared to a return of 19.01% for the S&P 500 Barra Value Index.
Anticipating some improvement in the global economy, Lord Abbett made an early
entry into the energy sector that paid off well in both the first half of the
year and in the third quarter. In their view, a rise in oil prices initiated by
OPEC, coupled with solid fundamentals, helped boost this sector. Technology
holdings also contributed to performance this year, with holdings such as IBM,
Sun Microsystems, First Data Corp. and Texas Instruments, adding to the Fund's
returns. Lord Abbett recently started to reduce the Fund's exposure to this
sector as prices began to reach the upper end of their valuation discipline.
Looking forward, Lord Abbett recognizes that the Federal Reserve may try to slow
the U.S. economy in an effort to keep inflation from escalating. In addition,
Lord Abbett anticipates a slowdown in consumer spending due to high consumer
debt levels, a slowing in mortgage refinancings (which reduce consumers' monthly
mortgage payments) and recent volatility in the equity markets, which itself may
serve to curtail spending previously attributable to the "wealth effect" from
appreciated portfolios. At the same time, they expect to see global economic
growth expand further. Taking this into account, Lord Abbett has begun to scale
back the Fund's exposure to U.S. consumer cyclicals like auto, housing and
retail, while slowly steering towards global cyclicals and commodities.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP S&P 500 Index
<S> <C> <C>
12/31/97 9500 10000
04/30/98 10574 11508
10/31/98 10021 11463
04/30/99 11895 14021
10/31/99 11793 14405
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 17.72% 11.87% 17.05% 11.05% 17.18% 16.18% 16.97% 13.90%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 12/31/97 12.54% 9.41% 12.10% 9.59% 12.05% 12.05% 12.00% 11.04%
- -----------------------------------------------------------------------------------------------------------------------------
</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> 12
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF JANUS OVERSEAS
GROWTH FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF Janus Overseas Growth
Fund's Class A shares had an NAV total return of 33.18%, compared to a return of
23.03% for the unmanaged MSCI EAFE Index.
Strong gains in a wide range of the Fund's positions helped it substantially
outperform the Index. Rapid subscriber growth and increased usage among existing
customers boosted the Fund's global cellular communications positions, including
NTT Mobile Communications and China Telecom. The Fund also benefited from strong
performance from its Japanese shares, such as Sony, Takeda Chemical, Fujitsu and
Softbank. These companies received support from the country's improving economic
fundamentals as well as internal efforts to cut costs and improve efficiency.
While overall Fund performance was strong, there were setbacks. The Fund's
position in Brazilian telecom provider Telebras traded lower amid the downward
volatility in Latin American stocks. However, Janus remains optimistic about
this company, which they believe has tremendous potential to tap into Brazil's
vast and underserved telecommunications market.
Looking forward, Janus believes the uncertainty surrounding U.S. interest rates
will continue, but they are actively looking for ways to exploit the volatility
associated with it. Janus expects European markets to gain momentum and emerging
markets to remain on edge. Consequently, they will continue to focus on
companies they believe are capable of thriving in virtually any set of
circumstances.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP MSCI EAFE Index
<S> <C> <C>
12/31/97 9500 10000
04/30/98 10498 11562
10/31/98 10023 10982
04/30/99 11419 12660
10/31/99 13343 13511
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 33.18% 26.46% 32.54% 26.54% 32.60% 31.60% 32.57% 29.89%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 12/31/97 20.38% 17.04% 19.82% 17.46% 19.92% 19.92% 19.78% 19.06%
- -----------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 13
ASAF MARSICO CAPITAL
GROWTH FUND
- --------------------------------------------------------------------------------
The ASAF Marsico Capital Growth Fund's Class A shares had an NAV total return of
44.18% for the fiscal year ended October 31, 1999, compared with a return of
25.66% for the unmanaged S&P 500 Index.
The year was characterized by a continuing high degree of stock market
volatility, which was attributable in large part to concern over interest rates
and inflation. Large-cap stocks outperformed small-caps and growth stocks, led
by technology issues, once again outperformed value stocks.
Holdings in a group of technology companies, including EMC Corporation and Sun
Microsystems, as well as select retail and consumer related positions,
contributed positively to the Fund's performance. Relative underweightings in
healthcare related and transportation companies also contributed positively to
performance. However, the Fund's allocations to financial services, cable/media
and entertainment companies detracted from results.
On balance, Marsico Capital Management remains positive about the outlook for
equity investing. They continue to believe there are important strengths to
build on in the U.S. economy that could augur well for financial markets over
the long run. While U.S. economic growth has been strong, they do not think
inflation is currently a threat. Marsico believes that a continued low inflation
environment should create the potential, over time, for lower interest rates.
That, in turn, should create a favorable backdrop for equities. They do expect
that volatility, in both stocks and bond markets, will continue and believe that
the importance of good stock selection -- as opposed to being right on the
general sector or industry -- will increase even further as we move into the new
millennium.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP S&P 500 Index
<S> <C> <C>
8/19/98 9500 10000
10/31/98 9614 11505
4/30/99 12940 14072
10/31/99 13857 14458
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 44.18% 37.01% 43.52% 37.52% 43.32% 42.32% 43.47% 41.05%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 8/19/98 37.01% 31.24% 36.37% 32.44% 36.21% 36.21% 36.21% 35.13%
- -----------------------------------------------------------------------------------------------------------------------------
</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> 14
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF NEUBERGER BERMAN
MID-CAP GROWTH FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF Neuberger Berman Mid-Cap
Growth Fund's Class A shares had an NAV total return of 38.83%, compared with a
return for the S&P 400 Index of 21.06%.
Mid-cap growth stock performance outpaced that of most major investment
categories during the last 12 months, including all of the large- and small-cap
S&P indices, by a considerable margin. The S&P Mid-Cap 400/Barra Growth Index
showed a total return of 40.39% for the period. Neuberger Berman believes this
marks a potentially important leadership rotation away from the highly valued
large-cap growth stocks toward attractively valued mid-cap growth stocks. In
many cases, mid-caps possess better growth characteristics and are more
reasonably valued than their large-cap counterparts. The recognition of positive
earnings results outside of the "nifty fifty" large-cap growth stocks provided
the catalyst for this rotation and overall broadening of the market.
Sectors that contributed positively to the Fund's performance included the
consumer cyclicals, consumer staples and financials. The technology sector
posted good results for the index, and the Fund's overweight position there
added to returns. However, specific holdings in the health care sector hurt
returns.
Neuberger Berman is encouraged by the market's recent rotation toward mid-cap
stocks. In fact, their internal growth projections for the Fund's holdings in
the near future remain high, and many portfolio companies continue to announce
positive earnings surprises. They believe the relatively inexpensive valuations
and high earnings growth potential offered by this asset class will continue to
attract investors.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP S&P 400 Index
<S> <C> <C>
8/19/98 9500 10000
10/31/98 11210 11909
4/30/99 13836 14154
10/31/99 15557 14418
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 38.83% 31.90% 38.21% 32.21% 38.09% 37.09% 38.09% 35.55%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 8/19/98 50.88% 44.53% 50.11% 46.26% 50.11% 50.11% 50.11% 49.39%
- -----------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 15
ASAF NEUBERGER BERMAN
MID-CAP VALUE FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF Neuberger Berman Mid-Cap
Value Fund's Class A shares had an NAV total return of 12.06%, compared to a
return of 21.06% for the unmanaged S&P 400 Index.
The Fund outperformed the S&P Mid-Cap 400/Barra Value Index, which returned
4.00% for the period. Value stocks in sectors such as basic materials and energy
that suffered in the wake of last year's flight to quality, rebounded in the
second half. Internet stocks and other growth stocks experienced bouts of
volatility as investors periodically abandoned them for more reasonably priced
stocks.
Technology stocks contributed the most to Fund returns during the period.
Holdings in this sector consist primarily of premier technology firms purchased
at discounted valuations. The Fund also benefited from good relative performance
in the consumer cyclicals and basic materials sectors. However, an overweight
position in the healthcare sector hurt Fund returns.
Although a relatively large gap still exists between the performance of the
growth and value styles of investing, Neuberger Berman is encouraged by the
broadening of the mid-cap value sectors during the reporting period. In their
opinion, the current performance gap is unsustainable over the long term. By
positioning the Fund in financially sound companies with good earnings and
attractive valuations, they remain optimistic about the Fund's future prospects.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP S&P 400 Index
<S> <C> <C>
8/19/98 9500 10000
10/31/98 9719 11909
4/30/99 11548 14154
10/31/99 10887 14418
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 12.06% 6.44% 11.57% 5.57% 11.57% 10.57% 11.38% 8.16%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 8/19/98 12.06% 7.34% 11.56% 7.47% 11.56% 11.56% 11.40% 9.64%
- -----------------------------------------------------------------------------------------------------------------------------
</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> 16
AMERICAN SKANDIA ADVISOR FUNDS, INC.
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 17.82% for the fiscal year ended October 31, 1999, compared to a
return of 23.03% for the unmanaged MSCI EAFE Index.
Almost exactly one year ago, international markets hit bottom, with problems in
Russia, Asia, and Latin America threatening to overwhelm the global financial
system. But interest rate cuts by central banks around the world, particularly
by the U.S. Federal Reserve, restored confidence and liquidity to the markets,
spurring dramatic rallies in some of the hardest hit countries. During the
ensuing six months or so, the biggest beneficiaries were cyclical and
value-oriented stocks, along with highly leveraged financial and property
companies in Asia. The former groups do not fit Rowe Price-Fleming's investment
program, and the latter two groups were avoided due to their staggering debt
burdens. As a global economic recovery took shape midway through this year,
higher quality growth stocks such as those Rowe Price-Fleming favors posted
better relative performance. However, the Fund's relative underweighting in
Japan hurt relative performance.
At the end of October, the Fund's allocation to Europe represented 64% of
assets, while 22% was invested in Japan. Rowe Price-Fleming expects further
economic recovery to boost European markets, and they believe the euro will gain
strength against the dollar entering 2000. In Japan, Rowe Price-Fleming believes
the yen is now strong enough to impede export growth, and the government's
ability to provide further fiscal support may be restrained by growing budget
deficits.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP MSCI EAFE Index
<S> <C> <C>
7/28/97 9500 10000
10/31/97 8710 9020
4/30/98 9832 10413
10/31/98 9159 9890
4/30/99 10251 11402
10/31/99 10794 12169
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 17.82% 11.98% 17.30% 11.30% 17.33% 16.33% 17.26% 14.19%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 5.80% 3.44% 5.34% 3.67% 5.26% 5.26% 5.43% 4.94%
- -----------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 17
ASAF JANUS CAPITAL
GROWTH FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF Janus Capital Growth Fund's
Class A shares had an NAV total return of 52.46%, compared to a return of 25.66%
for the unmanaged S&P 500 Index.
Despite periods of increased volatility, domestic equity markets moved ahead
during the year. Technology stocks continued to garner the bulk of investors'
attention, which helped the technology-heavy NASDAQ Composite Index gain 68.54%.
The Fund's holdings in a host of different areas, including technology,
telecommunications, and selected retailing companies provided strong
contributions to performance.
Among individual holdings, VERITAS Software surged ahead. The company has
established itself as a leading provider of storage solutions that help
companies manage and safeguard their network data. Through its recent
acquisition of Seagate's Software Network Management Group, VERITAS has become
one of the few companies able to provide end-to-end storage management solutions
that span corporate networks. Nokia, the Finnish cellular handset manufacturer,
also posted strong results. The company is the world leader in digital handset
devices, and continues to take market share from its competitors through
cutting-edge products.
Looking ahead, Janus remains optimistic about the Fund's prospects, given the
dynamic nature of the companies the Fund holds and the strong prospects they
believe each possesses. While the backdrop for equities is uncertain, they
remain confident that there will always be exceptional companies that can
overcome the challenges of the marketplace.
[LINE GRAPH]
<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 9625
4/30/98 11701 11788
10/31/98 12280 11741
4/30/99 17683 14361
10/31/99 18720 14754
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 52.46% 44.83% 51.52% 45.52% 51.52% 50.52% 51.55% 49.34%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 35.01% 31.97% 34.42% 33.19% 34.33% 34.33% 34.48% 34.75%
- -----------------------------------------------------------------------------------------------------------------------------
</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).
14
<PAGE> 18
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF INVESCO
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
For the fiscal year ended October 31, 1999, the ASAF INVESCO Equity Income
Fund's Class A shares had an NAV total return of 17.6%, compared to a return of
25.66% for the unmanaged S&P 500 Index.
The Fund's equity holdings (approximately 75% of net assets at year-end)
performed strongly during the year, as the equity markets once again
significantly outperformed the fixed income markets. Though underperforming the
S&P 500, the Fund's fixed income investments continued to raise overall
portfolio yield and enhance the defensive characteristics of the Fund. During
the fiscal year, INVESCO increased the Fund's weighting in basic material,
consumer cyclical, and more recently in financial service and healthcare stocks.
The Fund benefited from strong relative performance by its basic material,
capital goods, consumer cyclical, financial service, and technology stocks. The
Fund's fixed income component, while a drag on the Fund's overall performance
relative to the S&P 500 Index, outperformed the Lehman Brothers
Government/Corporate Bond Index.
INVESCO Funds Group expects U.S. economic and corporate profit growth will slow
in 2000, though they have been pleasantly surprised with the resiliency of both
the U.S. economy and corporate profits in 1999. Given the uncertainty
surrounding future interest rates they are somewhat cautious about the outlook
for the market, though they believe the recent upward surge in financial service
and healthcare stocks is bullish for the market as a whole. On a positive note,
despite rising commodity prices, broad inflationary measures such as the
Consumer Price Index, Producer Price Index, and Employment Cost Index remain
relatively benign.
[LINE GRAPH]
<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 9625
4/30/98 11407 11788
10/31/98 11304 11741
4/30/99 13095 14361
10/31/99 13288 14754
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 17.60% 11.71% 17.08% 11.08% 17.08% 16.08% 17.09% 14.02%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 16.03% 13.40% 15.54% 14.06% 15.54% 15.54% 15.51% 15.31%
- -----------------------------------------------------------------------------------------------------------------------------
</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).
15
<PAGE> 19
ASAF TOTAL
RETURN BOND FUND
- --------------------------------------------------------------------------------
The ASAF Total Return Bond Fund's Class A shares had an NAV total return of
- -0.55% for the fiscal year ended October 31, 1999, compared to a return of 0.53%
for the unmanaged LB Aggregate Index.
Interest rates rose and bond prices fell during the twelve months. The interest
rate sensitivity of the Fund was held near index levels as a defensive strategy;
however, short-intermediate maturity emphasis in the portfolio was a negative
factor as rates moved up more in this area of the yield curve.
The Fund's mortgage sector holdings and emerging markets bonds performed best,
while Treasury and corporate issues detracted from performance.
PIMCO expects interest rates to stay within a relatively narrow band during the
year 2000 and will emphasize strategies to enhance yield.
[LINE GRAPH]
<TABLE>
<CAPTION>
Fund's Class A Shares at POP LB Aggregate Index
<S> <C> <C>
7/28/97 9575 10000
10/31/97 9803 10208
4/30/98 10105 10573
10/31/98 10665 11159
4/30/99 10674 11235
10/31/99 10603 11218
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS THROUGH OCTOBER 31, 1999
<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 -0.55% -4.79% -1.02% -6.64% -0.92% -1.86% -1.00% -4.15%
- -----------------------------------------------------------------------------------------------------------------------------
SINCE INCEPTION
ON 7/28/97 4.63% 2.62% 4.01% 2.31% 4.03% 4.03% 4.03% 3.50%
- -----------------------------------------------------------------------------------------------------------------------------
</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).
16
<PAGE> 20
AMERICAN SKANDIA ADVISOR FUNDS, INC.
SCHEDULES OF INVESTMENTS
OCTOBER 31, 1999
ASAF FOUNDERS INTERNATIONAL SMALL CAPITALIZATION FUND
ASAF JANUS SMALL-CAP GROWTH FUND
ASAF T. ROWE PRICE SMALL COMPANY VALUE FUND
ASAF AMERICAN CENTURY STRATEGIC BALANCED FUND
ASAF FEDERATED HIGH YIELD BOND FUND
ASAF OPPENHEIMER LARGE-CAP 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
17
<PAGE> 21
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 88.0%
AUSTRALIA -- 5.7%
Challenger
International 58,825 $ 153,693
Chip Application* 49,900 47,380
Davnet Ltd.* 255,850 117,388
LibertyOne Ltd.* 62,625 77,420
Multiemedia.Com Ltd.* 265,875 67,771
Novogen Ltd.* 37,475 80,000
PowerLan Ltd.144A 21,375 49,989
Sausage Software Ltd.* 20,925 36,669
Solution 6 Holdings
Ltd.* 10,900 47,788
Solutions Ltd.* 74,075 109,041
Sonic Healthcare Ltd. 11,575 44,994
Westel Group Ltd.* 447,850 97,032
Wine Planet Holdings
Ltd.* 279,725 41,889
-----------
971,054
-----------
BELGIUM -- 0.3%
Creyf's SA* 1,975 49,508
-----------
CANADA -- 1.5%
Agnico Eagle Mines Ltd. 6,075 48,942
Eldorado Gold Corp.* 30,725 20,889
Genesis Microchip,
Inc.* 2,650 43,394
Goldcorp, Inc.* 7,475 48,278
Meridian Gold, Inc.* 6,450 46,701
Xenos Group, Inc.*144A 7,450 53,941
-----------
262,145
-----------
DENMARK -- 1.7%
Damgaard AS* 2,275 120,635
Vestas Wind Systems AS
144A* 1,275 166,767
-----------
287,402
-----------
EGYPT -- 0.4%
Commercial
International Bank
[GDR]*144A 6,250 74,636
-----------
FINLAND -- 1.9%
JOT Automation Group
Oyj 48,750 251,069
Perlos Oyj* 3,550 58,207
PMJ automec Oyj 1,350 8,386
-----------
317,662
-----------
FRANCE -- 5.8%
ALTEN 875 95,554
Cegid* 375 70,355
Colas SA* 675 139,551
Consodata SA* 7,075 133,851
FI System 875 87,368
Genesys* 1,175 22,983
Infogrames
Entertainment SA* 850 78,708
IPSOS* 1,725 87,661
Mecatherm SA 1,625 61,486
Neopost SA* 3,375 116,706
NRJ SA* 275 85,555
-----------
979,778
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
GERMANY -- 8.2%
Brokat Infosystems AG* 950 $ 113,329
Ce Consumer Electronic
AG 1,850 166,250
Fantastic Corp.* 1,225 84,977
GFK AG*144A 11,225 316,186
Intershop
Communications AG* 2,175 268,609
Kabel New Media* 5,325 74,438
Kamps AG* 1,975 108,981
Telegate AG* 3,500 119,557
Zapf Creation AG* 3,975 136,827
-----------
1,389,154
-----------
GREECE -- 0.5%
Ideal Group SA* 1,950 80,156
Intralot SA* 350 8,922
-----------
89,078
-----------
HONG KONG -- 2.7%
APT Satellite Holdings 5,500 2,832
ASM Pacific Technology
Ltd. 28,000 32,975
Automated Systems
Holdings Ltd. 348,000 179,162
Celestial Asia
Securities Holdings
Ltd.* 860,000 85,230
China Everbright Ltd.
Warrants 410,000 65,963
China Pharmaceutical,
Inc. 80,000 14,621
Computer & Technologies
Holdings Ltd.* 206,000 53,028
JCG Holdings Ltd. 56,000 30,453
-----------
464,264
-----------
INDONESIA -- 0.1%
PT Kalbe Farma* 116,000 14,447
-----------
IRELAND -- 1.6%
Grafton Group PLC 1,975 43,592
Iaws Group PLC 9,575 47,300
ITG Group PLC* 8,650 58,641
Jurys Doyle Hotel Group
PLC 4,775 41,154
Kingspan Group PLC* 16,000 40,024
Waterford Wedgwood PLC 42,900 45,541
-----------
276,252
-----------
ISRAEL -- 0.8%
BATM Advanced
Communications Ltd. 2,750 143,159
-----------
</TABLE>
18
<PAGE> 22
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
ITALY -- 3.2%
Buffetti SPA 10,025 $ 83,135
ERG SPA 29,100 92,674
Gruppo Coin SPA* 18,200 179,814
Tiscali SPA*144A 1,400 96,249
Trenno (Societa) SPA* 12,675 93,654
-----------
545,526
-----------
JAPAN -- 24.2%
Able, Inc.* 2,000 183,978
Acces Co. Ltd.* 1 147,566
Alpha Systems, Inc. 2,000 277,883
Arcland Sakamoto Co.
Ltd.* 5,000 83,844
Arrk Corp.* 3,000 106,363
Avex, Inc.* 800 168,647
Cecile Co. Ltd. 1,200 58,873
Chiyoda Integre Co.
Ltd.* 7,000 114,699
Cresco Ltd.* 1,500 127,923
Daisyo Corp.* 4,000 54,235
Fuso Lexel, Inc.* 7,000 146,895
H.I.S. Co. Ltd. 4,160 165,427
Happinet Corp.* 900 51,744
Ichiyoshi Securities
Co. Ltd.* 6,000 37,486
Japan Lifeline Co.
Ltd.* 1,000 22,039
Kappa Create Co. Ltd.* 4,000 126,485
Koei Co. Ltd.* 2,400 92,679
Komatsu Electronic
Metals Co. Ltd.* 3,800 39,325
Kuroda Electric Co.
Ltd.* 200 11,460
Matsuya Foods Co. Ltd* 2,000 137,601
Medical Support Co.
Ltd.* 1,000 46,857
Megane Top Co. Ltd.* 4,000 176,313
Meiki Co. Ltd.* 6,000 139,996
Mimasu Semiconductor
Industry Co. Ltd.* 3,700 77,113
Musashi Seimitsu
Industry Co.* 3,000 43,120
New Japan Radio Co.
Ltd.* 1,000 8,528
NIDEC Copal Electronics
Corp.* 8,000 125,719
Nishimatsuya Chain Co.
Ltd.* 3,000 143,733
Nitori Co.* 1,000 41,204
Okamura Corp. 26,000 97,164
Paltek Corp.* 2,000 99,655
PCA Corp.* 1,418 65,900
Q'Sai Co. Ltd.* 1,000 68,896
Star Micronics Co.
Ltd.* 5,000 69,950
Stella Chemifa Corp.* 2,000 121,694
Tanseisha Co. Ltd.* 7,500 50,307
Toyo Corp.* 3,000 81,928
Uchida Yoko Co. Ltd.* 27,000 250,958
Yokowo Co. Ltd.* 13,000 222,355
-----------
4,086,542
-----------
NETHERLANDS -- 0.2%
Detron Group NV* 2,200 27,748
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
NORWAY -- 0.4%
Norman ASA* 15,950 $ 75,230
-----------
PORTUGAL -- 0.6%
ParaRede SGPS SA* 9,275 97,485
-----------
SINGAPORE -- 0.7%
Elec & Eltek
International Co.
Ltd. 23,000 78,200
Informatics Holdings
Ltd.* 48,000 23,368
NatSteel Broadway Ltd. 13,000 23,140
-----------
124,708
-----------
SOUTH AFRICA -- 0.8%
Edgars Consolidated
Stores Ltd. 4,700 45,891
JD Group Ltd. 6,300 40,394
Specialised Outsourcing
Ltd. 11,400 56,396
-----------
142,681
-----------
SPAIN -- 0.2%
Transportes Azkar SA 3,250 28,420
-----------
SWEDEN -- 5.4%
A-Com AB*144A 9,800 113,010
Allgon AB Cl-B 13,350 179,876
Connecta AB*144A 2,150 31,317
Enlight Interactive AB
Cl-B* 725 8,360
HiQ International AB* 3,675 104,832
Information Highway AB 3,700 121,713
JM Byggnads och
Fastighets AB 2,050 38,570
Technology Nexus AB* 2,975 25,098
Telelogic AB* 7,550 123,722
Teligent AB* 16,950 163,570
-----------
910,068
-----------
SWITZERLAND -- 5.5%
Edipresse SA 240 98,757
Esec Holdings AG 60 90,567
Gretag Imaging Group 700 88,663
Kaba Holding AG Cl-B* 230 169,058
Kudelski SA* 15 62,412
Micronas Semiconductor
Holding AG 900 172,471
Selecta Group 75 26,530
Straumann AG 365 161,691
Swisslog Holding AG 400 62,937
-----------
933,086
-----------
UNITED KINGDOM -- 15.6%
Autonomy Corp. PLC* 8,050 174,283
Baltimore Technologies
PLC* 4,050 124,606
Bloomsbury Publishing
PLC* 8,350 69,535
</TABLE>
19
<PAGE> 23
ASAF FOUNDERS INTERNATIONAL
SMALL CAPITALIZATION FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Capital Radio PLC 4,850 $ 79,504
Dialog Semiconductor
PLC* 144A 10,450 269,094
Eidos PLC [ADR]* 3,125 218,164
Electronics Boutique
PLC* 42,775 68,084
F.I. Group PLC 6,050 51,722
Guardian IT PLC 11,275 123,033
Incepta Group PLC 31,300 32,614
Independent Energy
Holdings PLC [ADR]* 6,800 184,025
Kewill Systems PLC 13,350 147,866
Matalan PLC 7,775 173,509
Pace Micro Tech PLC 11,700 52,460
Psion PLC 5,625 141,220
Redstone Telecom PLC 6,800 21,926
RM PLC 7,325 75,123
Select Appointments
Holdings PLC* 12,500 214,548
Trafficmaster PLC* 5,450 44,715
VideoLogic Group PLC* 19,400 54,117
Wetherspoon, (J.D.) PLC 13,150 73,257
Whatman PLC 7,025 126,801
Xaar PLC* 44,325 99,281
-----------
2,619,487
-----------
TOTAL FOREIGN STOCK
(Cost $13,870,125) 14,909,520
-----------
U.S. STOCK -- 1.9%
COMPUTER SERVICES & SOFTWARE -- 1.1%
4front Technologies,
Inc.* 7,550 102,868
BackWeb Technologies
Ltd.* 4,425 93,202
-----------
196,070
-----------
TELECOMMUNICATIONS --0.8%
AudioCodes Ltd.* 2,150 130,075
-----------
TOTAL U.S. STOCK
(Cost $349,603) 326,145
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 11.5%
Federal Mortgage Corp.
5.16%, 11/01/99
(Cost $1,951,000) $ 1,951 $ 1,951,000
-----------
TOTAL INVESTMENTS -- 101.4%
(Cost $16,170,728) 17,186,665
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.4%) (245,076)
-----------
NET ASSETS -- 100.0% $16,941,589
===========
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1999:
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE RECEIVE FOR AT VALUE (DEPRECIATION)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/99 Buy AUD 67,331 $ 43,442 $ 42,922 $ (520)
11/99 Buy EUR 226,103 239,433 237,779 (1,654)
11/99 Buy GBP 136,851 226,657 224,616 (2,041)
11/99 Buy HKD 188,432 24,252 24,251 (1)
11/99 Buy JPY 36,104,931 346,034 346,183 149
11/99 Buy SEK 1,267,707 154,679 153,938 (741)
---------- ---------- -------
$1,034,497 $1,029,689 $(4,808)
========== ========== =======
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE DELIVER FOR AT VALUE (DEPRECIATION)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/99 Sell CHF 120,198 $ 78,974 $ 78,929 $ 45
11/99 Sell EUR 26,511 27,920 27,893 27
11/99 Sell GBP 36,507 8,444 8,387 57
11/99 Sell JPY 27,656,392 263,007 265,209 (2,202)
11/99 Sell SGD 8,130 4,868 4,890 (22)
-------- -------- -------
$383,213 $385,308 $(2,095)
======== ======== =======
</TABLE>
20
<PAGE> 24
AMERICAN SKANDIA ADVISOR FUNDS, INC.
The following is a breakdown of the foreign stock portion of the Fund, by
industry classification, as of October 31, 1999. Percentages are based on net
assets.
<TABLE>
<CAPTION>
INDUSTRY
- --------
<S> <C>
Automotive Parts 0.3%
Beverages 0.2%
Broadcasting 1.0%
Building Materials 0.5%
Business Services 5.0%
Chemicals 0.7%
Clothing & Apparel 1.1%
Computer Hardware 1.9%
Computer Services & Software 22.6%
Conglomerates 0.5%
Construction 1.3%
Electronic Components & Equipment 9.7%
Entertainment & Leisure 2.7%
Financial -- Bank & Trust 0.4%
Financial Services 2.1%
Food 3.0%
Hotels & Motels 0.2%
Machinery & Equipment 4.1%
Medical Supplies & Equipment 1.9%
Metals & Mining 1.0%
Office Equipment 2.1%
Oil & Gas 0.5%
Pharmaceuticals 0.9%
Printing & Publishing 1.6%
Real Estate 2.0%
Retail & Merchandising 6.4%
Semiconductors 5.5%
Telecommunications 5.6%
Transportation 1.1%
Utilities 2.1%
-----
TOTAL 88.0%
=====
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
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 6.8% of net assets.
See Notes to Financial Statements.
21
<PAGE> 25
ASAF JANUS SMALL-CAP
GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 84.4%
ADVERTISING -- 4.0%
DoubleClick, Inc.* 17,605 $ 2,464,700
Lamar Advertising Co.* 72,875 3,935,250
TMP Worldwide, Inc.* 36,200 2,260,238
------------
8,660,188
------------
BROADCASTING -- 7.5%
Acme Communications,
Inc.* 39,420 1,419,120
ACTV, Inc.* 68,435 1,082,129
Citadel Communications
Corp.* 72,805 3,517,392
Cox Radio, Inc. Cl-A* 30,970 2,167,900
Cumulus Media, Inc.
Cl-A* 58,255 2,089,898
Entercom
Communications
Corp.* 27,460 1,367,851
Radio One, Inc.* 31,350 1,563,581
Radio Unica Corp.* 48,550 1,389,744
TIVO, Inc.* 25,185 1,079,807
Wink Communications,
Inc.* 12,570 441,521
------------
16,118,943
------------
BUSINESS
SERVICES -- 10.4%
Adelphia Business
Solutions, Inc.* 69,905 1,983,554
Appnet Systems, Inc.* 45,815 1,995,816
Brightpoint, Inc.* 61,605 483,214
CIBER, Inc.* 32,325 527,302
F5 Networks, Inc.* 9,270 1,286,213
Foundry Networks,
Inc.* 6,245 1,183,428
Informatica Corp.* 31,765 2,295,021
Insweb Corp.* 24,745 445,410
Internet Capital
Group, Inc. Rights* 827 96,242
Interwoven, Inc.* 13,220 1,036,118
Jupiter
Communications,
Inc.* 10,155 349,078
Liberate Technologies,
Inc.* 59,060 4,023,463
Pegasus Systems, Inc.* 27,115 1,159,166
Phone.com, Inc.* 23,000 4,726,499
Tanning Technology
Corp.* 27,250 957,156
------------
22,547,680
------------
CAPITAL GOODS -- 0.3%
Mettler-Toledo
International, Inc.* 22,510 671,079
------------
COMPUTER HARDWARE -- 1.0%
Insight Enterprises,
Inc.* 48,267 1,803,979
Paradyne Networks,
Inc.* 12,215 371,031
------------
2,175,010
------------
COMPUTER SERVICES & SOFTWARE -- 21.9%
Active Software, Inc.* 7,390 267,426
Bluestone Software,
Inc.* 9,180 338,513
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Breakaway Solutions,
Inc.* 6,375 $ 339,070
Brio Technology, Inc.* 33,710 817,468
Broadbase Software,
Inc.* 20,900 950,950
BSQUARE Corp.* 19,255 761,776
Calico Commerce, Inc.* 14,185 883,016
Commerce One, Inc.* 30,715 5,259,943
Concentric Network
Corp.* 89,640 2,297,025
Cysive, Inc.* 6,850 394,303
E.piphany, Inc.* 6,010 516,860
ECsoft Group PLC
[ADR]* 5,065 68,378
Emulex Corp.* 10,615 1,655,277
Exodus Communications,
Inc.* 53,000 4,557,999
Globix Corp.* 53,825 1,937,700
internet.com LLC* 12,690 253,800
Interspeed, Inc.* 13,630 150,782
Intertrust
Technologies Corp.* 39,345 2,144,303
Jacada, Ltd.* 15,355 222,648
JNI Corp.* 5,025 268,523
Kana Communications,
Inc.* 7,280 612,430
Keynote Systems, Inc.* 6,735 305,601
Launch Media, Inc.* 8,120 88,305
Marimba, Inc.* 20,455 582,968
NaviSite, Inc.* 34,040 1,599,880
Netcentives, Inc.* 28,370 475,198
Netiq Corp.* 4,530 206,964
Portal Software, Inc.* 21,585 1,411,119
Quest Software, Inc.* 4,915 362,481
Radware Ltd.* 7,175 369,064
Razorfish, Inc.* 48,730 3,593,837
Scient Corp.* 16,155 2,001,201
Silverstream Software,
Inc.* 15,255 795,167
Software.com, Inc.* 25,500 1,716,469
Verio, Inc.* 117,765 4,394,106
VerticalNet, Inc. 76,500 4,283,999
Vitria Technology,
Inc.* 5,970 393,647
Vixel Corp.* 2,655 84,960
------------
47,363,156
------------
CONSUMER PRODUCTS & SERVICES -- 1.1%
Action Performance
Companies, Inc.* 30,070 611,737
Bally Total Fitness
Holdings Corp.* 22,815 548,986
Critical Path, Inc.* 15,415 705,236
Martha Stewart Living
Omnimedia, Inc.* 11,105 409,497
------------
2,275,456
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.9%
Applied Micro Circuits
Corp.* 27,050 2,104,828
Dionex Corp.* 36,070 1,602,861
</TABLE>
22
<PAGE> 26
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Galileo Technology Ltd.* 63,020 $ 1,441,583
Pittway Corp. Cl-A 36,570 1,206,810
RF Micro Devices,
Inc.* 83,275 4,299,071
Sawtek, Inc.* 48,135 1,973,535
------------
12,628,688
------------
ENTERTAINMENT & LEISURE -- 3.6%
Ackerley Group, Inc. 8,355 139,424
Championship Auto
Racing Teams, Inc.* 52,125 1,195,617
Playboy Enterprises,
Inc. Cl-B* 40,705 1,043,066
Premier Parks, Inc.* 73,220 2,118,804
SFX Entertainment,
Inc. Cl-A* 87,190 3,046,200
World Wrestling
Federation
Entertainment, Inc.* 12,140 292,878
------------
7,835,989
------------
FINANCIAL -- BANK & TRUST -- 0.2%
Digital Insight Corp.* 6,340 251,222
Doral Financial Corp. 17,080 218,838
------------
470,060
------------
FINANCIAL
SERVICES -- 0.8%
Investors Financial
Service Corp. 45,125 1,669,625
------------
FOOD -- 0.6%
Whole Foods Market,
Inc.* 37,245 1,266,330
------------
HEALTHCARE
SERVICES -- 1.4%
Accredo Health, Inc.* 37,245 1,229,085
Apria Healthcare
Group, Inc.* 92,750 1,466,609
InfoCure Corp.* 17,180 270,585
------------
2,966,279
------------
INSURANCE -- 0.6%
Blanch, (E.W.)
Holdings, Inc. 15,715 1,017,546
StanCorp Financial
Group, Inc. 11,330 287,499
------------
1,305,045
------------
MEDICAL SUPPLIES & EQUIPMENT -- 1.0%
Celera Genomics Group* 9,300 363,863
Invitrogen Corp.* 57,030 1,425,750
ViroPharma, Inc.* 13,615 284,213
------------
2,073,826
------------
PERSONAL SERVICES --0.2%
Career Education
Corp.* 14,230 313,060
Corinthian Colleges,
Inc.* 3,415 66,593
------------
379,653
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS -- 6.4%
Abgenix, Inc.* 3,100 $ 137,563
ChiRex, Inc.* 45,755 1,292,579
Enzon, Inc.* 193,475 5,671,235
MedImmune, Inc.* 13,340 1,494,080
Priority Healthcare
Corp. Cl-B* 27,855 558,841
Professional
Detailing, Inc.* 25,740 643,500
QLT PhotoTherapeutics,
Inc.* 94,800 4,017,150
------------
13,814,948
------------
PRINTING & PUBLISHING -- 1.5%
Valassis
Communications,
Inc.* 73,055 3,141,365
------------
RETAIL & MERCHANDISING -- 2.7%
Ames Department
Stores, Inc.* 67,575 2,141,282
Beyond.com Corp.* 59,510 550,468
Liquid Audio, Inc.* 995 35,074
pcOrder.com, Inc.* 16,725 827,888
Rent-Way, Inc.* 35,530 590,686
REX Stores Corp.* 4,615 132,104
School Specialty,
Inc.* 98,890 1,464,808
------------
5,742,310
------------
SEMICONDUCTORS -- 7.0%
Alpha Industries,
Inc.* 64,197 3,546,884
ATMI, Inc.* 68,555 1,846,700
Kopin Corp.* 6,810 286,020
NVIDIA Corp.* 19,600 433,650
Quicklogic Corp.* 20,470 376,136
SDL, Inc.* 56,635 6,983,804
Silicon Image, Inc.* 9,855 435,468
TriQuint
Semiconductor, Inc.* 13,355 1,068,400
------------
14,977,062
------------
TELECOMMUNICATIONS -- 5.5%
Allied Riser
Communications
Corp.* 88,300 1,594,919
Caprock Communications
Corp.* 17,845 514,159
Ditech Communications
Corp.* 12,065 1,060,212
Efficient Networks,
Inc.* 4,410 187,425
MCK Communications,
Inc.* 4,990 112,275
Spanish Broadcasting
Systems, Inc.* 100,900 2,686,462
Splitrock Services,
Inc.* 49,145 1,075,047
Terayon Communication
Systems, Inc.* 31,250 1,367,188
</TABLE>
23
<PAGE> 27
ASAF JANUS SMALL-CAP
GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Viatel, Inc.* 62,425 $ 2,083,434
WinStar
Communications,
Inc.* 31,485 1,222,012
------------
11,903,133
------------
UTILITIES -- 0.8%
Avista Corp. 90,785 1,634,130
------------
TOTAL COMMON STOCK
(Cost $135,334,600) 181,619,955
------------
FOREIGN STOCK -- 1.4%
AUTOMOBILE MANUFACTURERS -- 0.0%
Ducati Motor Holding
SPA -- (ITL)* 17,757 50,522
------------
ENTERTAINMENT & LEISURE -- 0.3%
Corporacion
Interamericana de
Entretenimento --
(MXP)* 268,100 723,653
------------
TELECOMMUNICATIONS -- 1.1%
Cogeco Cable, Inc. --
(CAD)* 65,217 964,355
Moffat Communications
Ltd. -- (CAD)* 82,353 1,203,745
------------
2,168,100
------------
TOTAL FOREIGN STOCK
(Cost $2,911,274) 2,942,275
------------
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 9.5%
Federal Home Loan
Mortgage Corp.
5.16%, 11/01/99-
12/09/99
(Cost $20,345,533) $20,400 $ 20,342,984
------------
COMMERCIAL PAPER -- 4.6%
Prudential Funding
Corp.
5.20%, 11/01/99
(Cost $10,000,000) 10,000 10,000,000
------------
<CAPTION>
SHARES
------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.2%
Temporary Investment
Cash Fund 210,389 210,389
Temporary Investment
Fund
210,389 210,389
------------
(Cost $420,778) 420,778
------------
TOTAL INVESTMENTS -- 100.1%
(Cost $169,012,185) 215,325,992
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.1%) (113,908)
------------
NET ASSETS -- 100.0% $215,212,084
============
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
See Notes to Financial Statements.
24
<PAGE> 28
AMERICAN SKANDIA ADVISOR FUNDS, INC.
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 94.3%
AIRLINES -- 1.6%
Midwest Express
Holdings, Inc.* 33,200 $ 973,175
-----------
AUTOMOTIVE PARTS -- 1.7%
Myers Industries, Inc. 29,410 413,578
OEA, Inc. 55,600 382,250
TBC Corp.* 41,600 284,700
-----------
1,080,528
-----------
BUILDING MATERIALS -- 9.9%
Cameron Ashley Building
Products, Inc.* 50,600 436,425
Giant Cement Holding,
Inc.* 16,500 315,563
Gibraltar Steel Corp. 26,600 650,038
Lone Star Technologies,
Inc.* 35,600 745,374
Modine Manufacturing
Co. 23,500 584,563
Republic Group, Inc. 44,500 767,624
Skyline Corp. 26,600 661,675
Synthetic Industries,
Inc.* 35,300 997,224
Thomas Industries, Inc. 28,700 513,013
U.S. Aggregates, Inc.* 35,300 421,394
-----------
6,092,893
-----------
BUSINESS SERVICES -- 1.1%
IT Group, Inc.* 70,300 694,213
-----------
CHEMICALS -- 2.2%
Arch Chemicals, Inc. 33,200 489,700
Schulman, (A.), Inc. 25,900 403,069
TETRA Technologies,
Inc.* 55,300 459,681
-----------
1,352,450
-----------
CLOTHING & APPAREL -- 1.1%
Dan River, Inc. Cl-A* 55,500 294,844
Unifi, Inc.* 30,600 367,200
-----------
662,044
-----------
COMPUTER HARDWARE -- 0.8%
Analogic Corp. 17,700 464,625
-----------
COMPUTER SERVICES & SOFTWARE -- 3.4%
Analysts International
Corp. 41,200 481,525
CompuCom Systems, Inc.* 70,600 227,244
Progress Software* 22,100 740,350
SPSS, Inc.* 37,700 669,175
-----------
2,118,294
-----------
CONSUMER PRODUCTS & SERVICES -- 0.7%
Culp, Inc. 31,100 215,756
Packaged Ice, Inc.* 58,900 198,788
-----------
414,544
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
CONTAINERS & PACKAGING -- 4.6%
Aptargroup, Inc. 35,300 $ 948,688
Ivex Packaging Corp.* 49,500 467,156
Liqui-Box Corp. 15,500 852,500
Shorewood Packaging
Corp.* 44,700 567,131
-----------
2,835,475
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 8.8%
Electro Rental Corp.* 66,600 799,200
FLIR Systems, Inc.* 30,600 434,138
Franklin Electric Co.,
Inc. 9,000 649,125
Landauer, Inc. 14,800 379,250
Littelfuse, Inc.* 49,900 1,110,274
Methode Electronics,
Inc. Cl-A 61,900 990,399
Nichols Research Corp.* 23,400 668,363
Pioneer-Standard
Electronics, Inc. 28,700 374,894
-----------
5,405,643
-----------
ENVIRONMENTAL SERVICES -- 0.9%
Newpark Resources,
Inc.* 75,300 484,744
Waterlink, Inc.* 17,900 58,175
-----------
542,919
-----------
EQUIPMENT SERVICES -- 1.4%
Cort Business Services
Corp.* 33,000 670,313
Unifirst Corp. 14,600 178,850
-----------
849,163
-----------
FINANCIAL -- BANK & TRUST -- 5.1%
Community First
Bankshares, Inc. 44,700 850,697
First Republic Bank* 33,400 835,000
Silicon Valley
Bancshares* 45,000 1,468,124
-----------
3,153,821
-----------
FINANCIAL SERVICES -- 5.2%
Allied Capital Corp. 55,600 1,115,474
American Capital
Strategies Ltd. 23,500 492,031
First Financial Fund,
Inc.** 66,600 566,100
Medallion Financial
Corp. 16,500 337,219
Triad Guaranty, Inc.* 34,400 707,350
-----------
3,218,174
-----------
FOOD -- 0.8%
International
Multifoods Corp. 23,600 498,550
-----------
FURNITURE -- 0.6%
Stanley Furniture Co.,
Inc.* 17,600 358,600
-----------
INSURANCE -- 5.3%
Brown & Brown, Inc. 35,500 1,198,124
Markel Corp.* 4,100 709,044
</TABLE>
25
<PAGE> 29
ASAF T. ROWE PRICE
SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Medical Assurance, Inc.* 33,400 $ 780,724
Presidential Life Corp. 23,500 431,813
PXRE Corp. 15,300 187,425
-----------
3,307,130
-----------
LUMBER & WOOD PRODUCTS -- 0.6%
Deltic Timber Corp. 17,700 397,144
-----------
MACHINERY & EQUIPMENT -- 3.7%
Alamo Group, Inc. 10,100 83,325
Carbo Ceramics, Inc. 21,200 551,200
Smith, (A.O.) Corp. 31,100 754,175
TransTechnology Corp. 31,100 299,338
Woodward Governor Co. 23,500 622,750
-----------
2,310,788
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 2.0%
Lunar Corp.* 14,400 100,800
Ocular Sciences, Inc.* 22,400 411,600
Owens & Minor, Inc. 77,700 728,438
-----------
1,240,838
-----------
METALS & MINING -- 2.4%
Homestake Mining Co. 29,900 250,413
Layne Christensen Co.* 26,600 217,788
Material Sciences
Corp.* 37,900 471,381
Penn Virginia Corp. 28,700 561,443
-----------
1,501,025
-----------
OFFICE EQUIPMENT -- 4.1%
Aaron Rents, Inc. Cl-A 15,000 231,563
Aaron Rents, Inc. Cl-B 28,200 445,913
CompX International,
Inc.* 37,000 684,500
IDEX Corp. 31,100 765,837
McGrath Rentcorp 23,000 391,000
-----------
2,518,813
-----------
OIL & GAS -- 3.6%
Chieftan International,
Inc.* 44,700 854,888
Cross Timbers Oil Co. 55,600 618,550
Devon Energy Corp. 20,000 777,500
-----------
2,250,938
-----------
PAPER & FOREST PRODUCTS -- 1.3%
CSS Industries, Inc.* 11,800 263,288
Wausau-Mosinee Paper
Corp. 40,780 514,847
-----------
778,135
-----------
PERSONAL SERVICES -- 1.5%
Matthews International
Corp. Cl-A 37,900 952,238
-----------
PHARMACEUTICALS -- 0.5%
Coulter Pharmaceutical,
Inc.* 18,400 312,800
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
REAL ESTATE -- 4.8%
Glenborough Realty
Trust, Inc. [REIT] 55,600 $ 726,274
Innkeepers USA Trust
[REIT] 49,900 430,388
National Health
Investors, Inc.
[REIT] 5,100 77,138
Pacific Gulf
Properties, Inc.
[REIT] 33,400 676,350
Parkway Co. [REIT] 11,800 361,375
Sun Communities, Inc.
[REIT] 22,100 704,437
-----------
2,975,962
-----------
RESTAURANTS -- 4.1%
Consolidated Products,
Inc.* 44,699 514,039
RARE Hospitality
International, Inc.* 37,700 751,644
Ruby Tuesday, Inc. 67,000 1,277,187
-----------
2,542,870
-----------
RETAIL & MERCHANDISING -- 4.9%
Bon-Ton Stores, Inc.* 37,700 174,363
Casey's General Stores,
Inc. 55,300 711,987
Fred's, Inc. 28,700 344,400
Goody's Family
Clothing* 58,800 595,350
Hancock Fabrics, Inc. 44,700 184,388
Jo-Ann Stores, Inc.
Cl-B* 28,700 364,131
Stein Mart, Inc.* 100,000 662,499
-----------
3,037,118
-----------
TRANSPORTATION -- 2.0%
Hub Group, Inc. Cl-A* 21,600 410,400
Landstar System, Inc.* 20,000 810,000
-----------
1,220,400
-----------
UTILITIES -- 3.6%
Black Hills Corp. 35,300 794,250
Cleco Corp. 23,500 778,438
United Water Resources,
Inc. 20,000 675,000
-----------
2,247,688
-----------
TOTAL COMMON STOCK
(Cost $65,228,056) 58,308,998
-----------
PREFERRED STOCK -- 0.3%
Cross Timbers Oil Co.
$1.5625 Cl-A [CVT]
(Cost $251,075) 7,400 209,050
-----------
</TABLE>
26
<PAGE> 30
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR)
(000 VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER -- 5.6%
Motorola, Inc.
5.30%, 12/23/99 $1,000 $ 992,344
PPG Industries, Inc.
5.30%, 11/05/99 1,000 999,411
Wal-Mart Stores, Inc.
5.28%, 12/02/99+ 1,500 1,493,181
-----------
(Cost $3,484,936) 3,484,936
-----------
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 2.0%
Temporary Investment
Cash Fund
(Cost $1,237,206) 1,237,206 $ 1,237,206
-----------
TOTAL INVESTMENTS -- 102.2%
(Cost $70,201,273) 63,240,190
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (2.2%) (1,358,557)
-----------
NET ASSETS -- 100.0% $61,881,633
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
** Closed-end fund.
+ Security is restricted to resale and may not be resold except to qualified
institutional buyers. At the end of the year, this security amounted to 2.4%
of net assets.
See Notes to Financial Statements.
27
<PAGE> 31
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 55.5%
AEROSPACE -- 0.3%
General Dynamics
Corp. 4,300 $ 238,381
United Technologies
Corp. 3,100 187,550
------------
425,931
------------
AIRLINES -- 0.1%
AMR Corp.* 1,900 120,650
Delta Air Lines, Inc. 600 32,663
------------
153,313
------------
AUTOMOBILE MANUFACTURERS -- 0.8%
Ford Motor Co. 13,400 735,325
General Motors Corp. 4,300 302,075
------------
1,037,400
------------
AUTOMOTIVE PARTS -- 0.0%
Delphi Automotive
Systems Corp. 2,200 36,163
------------
BEVERAGES -- 0.2%
Anheuser-Busch
Companies, Inc. 2,500 179,531
Coors, (Adolph) Co.
Cl-B 2,600 144,300
------------
323,831
------------
BROADCASTING -- 0.6%
CBS Corp.* 15,900 776,119
------------
BUILDING MATERIALS -- 0.1%
Centex Construction
Products, Inc. 2,700 96,019
------------
BUSINESS SERVICES -- 0.2%
American Management
Systems, Inc.* 500 12,938
Navigant Consulting,
Inc.* 7,200 205,650
------------
218,588
------------
CAPITAL GOODS -- 0.1%
Cummins Engine Co.,
Inc. 2,200 111,513
------------
CHEMICALS -- 1.2%
Dexter Corp. 5,600 196,350
Dow Chemical Co. 8,100 957,825
DuPont, (E.I.) de
Nemours & Co. 6,500 418,844
------------
1,573,019
------------
CLOTHING & APPAREL -- 0.4%
Abercrombie & Fitch
Co. Cl-A* 1,400 38,150
AnnTaylor Stores
Corp.* 6,700 285,169
Jones Apparel Group,
Inc.* 2,000 63,250
Tommy Hilfiger Corp.* 5,000 141,250
------------
527,819
------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
COMPUTER HARDWARE -- 2.8%
Adaptec, Inc.* 37,500 $ 1,687,499
Apple Computer, Inc.* 400 32,050
Dell Computer Corp.* 3,000 120,375
Hewlett-Packard Co. 15,100 1,118,344
International
Business Machines
Corp. 7,500 737,813
------------
3,696,081
------------
COMPUTER SERVICES & SOFTWARE -- 5.4%
Adobe Systems, Inc. 600 41,963
America Online, Inc.* 7,400 959,688
Cisco Systems, Inc.* 14,300 1,058,199
Computer Associates
International, Inc. 2,600 146,900
Comverse Technology,
Inc.* 5,400 612,900
Microsoft Corp.* 35,600 3,295,224
Sterling Software,
Inc.* 2,800 61,425
Symantec Corp.* 2,300 109,827
Unisys Corp.* 14,800 358,900
USWeb Corp.* 5,900 228,625
------------
6,873,651
------------
CONGLOMERATES -- 1.5%
Corning, Inc. 15,500 1,218,687
Tyco International
Ltd. 18,600 742,838
------------
1,961,525
------------
CONSTRUCTION -- 0.2%
Centex Corp. 5,000 134,063
Dycom Industries,
Inc.* 2,800 91,175
Pulte Corp. 2,800 56,350
------------
281,588
------------
CONSUMER PRODUCTS & SERVICES -- 1.4%
Eastman Kodak Co. 3,300 227,494
Fortune Brands, Inc. 3,800 134,663
Premark
International, Inc. 8,600 470,850
Procter & Gamble Co. 6,700 702,662
Tupperware Corp. 4,700 93,119
Universal Corp. 4,800 112,800
Whirlpool Corp. 1,500 104,531
------------
1,846,119
------------
CONTAINERS & PACKAGING -- 0.2%
Ball Corp. 4,400 177,375
Sealed Air Corp.* 1,600 88,600
------------
265,975
------------
</TABLE>
28
<PAGE> 32
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
ELECTRONIC COMPONENTS & EQUIPMENT -- 2.1%
American Power
Conversion Corp.* 3,100 $ 69,556
Electronics for
Imaging, Inc.* 14,800 596,625
General Electric Co. 11,200 1,518,299
PerkinElmer, Inc.* 3,500 142,844
Rockwell
International Corp. 3,800 184,063
Teleflex, Inc. 1,100 37,469
Texas Instruments,
Inc. 1,900 170,525
------------
2,719,381
------------
ENTERTAINMENT & LEISURE -- 0.4%
Anchor Gaming* 1,600 97,600
Carnival Corp. 2,500 111,250
Pixar, Inc.* 2,000 76,125
Station Casinos,
Inc.* 2,700 65,306
Viacom, Inc. Cl-B* 4,800 214,800
------------
565,081
------------
EQUIPMENT SERVICES -- 0.3%
Hertz Corp. Cl-A 6,800 294,950
Millipore Corp. 1,900 60,563
------------
355,513
------------
FINANCIAL -- BANK & TRUST -- 3.8%
BankAmerica Corp. 8,800 566,500
Chase Manhattan Corp. 24,400 2,131,949
Fifth Third Bancorp 3,200 236,200
Fleet Boston Corp. 6,300 274,838
GreenPoint Financial
Corp. 2,800 79,800
Old Kent Financial
Corp. 9,200 374,900
Pacific Century
Financial Corp. 1,900 43,344
UnionBanCal Corp. 16,400 712,374
Wells Fargo & Co. 3,700 177,138
Zions Bancorp 6,700 394,881
------------
4,991,924
------------
FINANCIAL SERVICES -- 4.3%
AMBAC Financial
Group, Inc. 10,200 609,450
Citigroup, Inc. 9,000 487,125
Deluxe Corp. 12,900 364,425
Fannie Mae 17,400 1,231,050
Freddie Mac 9,200 497,375
Merrill Lynch & Co.,
Inc. 1,100 86,350
Morgan Stanley, Dean
Witter & Co. 16,600 1,831,187
Providian Financial
Corp. 4,600 501,400
------------
5,608,362
------------
FOOD -- 2.6%
ConAgra, Inc. 4,300 112,069
General Mills, Inc. 1,600 139,500
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Hormel Foods Corp. 4,900 $ 211,313
IBP, Inc. 19,700 471,568
Keebler Foods Co.* 14,000 447,125
Kroger Co.* 16,200 337,163
Quaker Oats Co. 14,900 1,042,999
Suiza Foods Corp.* 8,300 299,319
The Earthgrains Co. 6,100 139,156
Unilever NV NY Reg.* 2,932 195,528
------------
3,395,740
------------
HEALTHCARE SERVICES -- 1.1%
Amgen, Inc.* 12,600 1,004,850
MedQuist, Inc.* 2,200 70,400
Oxford Health Plans,
Inc.* 8,500 100,406
PacifiCare Health
Systems, Inc.* 3,300 130,144
United HealthCare
Corp.* 1,300 67,194
------------
1,372,994
------------
INSURANCE -- 1.0%
American
International
Group, Inc. 950 97,791
Arthur J. Gallagher &
Co. 4,100 212,175
Lincoln National
Corp. 20,200 931,724
Radian Group, Inc. 2,300 121,469
------------
1,363,159
------------
MACHINERY & EQUIPMENT -- 0.3%
Ingersoll-Rand Co. 8,500 444,125
------------
MEDICAL SUPPLIES & EQUIPMENT -- 1.6%
Bard, (C.R.), Inc. 7,300 393,744
Forest Laboratories,
Inc.* 6,200 284,425
Genzyme Corp.* 6,300 240,975
Johnson & Johnson Co. 6,800 712,299
Mallinckrodt, Inc. 4,500 152,719
VISX, Inc.* 5,100 319,069
------------
2,103,231
------------
METALS & MINING -- 0.2%
Alcan Aluminum Ltd. 3,800 125,163
Alcoa, Inc. 2,200 133,650
------------
258,813
------------
OIL & GAS -- 3.1%
Amerada Hess Corp. 23,900 1,371,262
Anadarko Petroleum
Corp. 2,500 77,031
Apache Corp. 14,600 569,400
Atlantic Richfield
Co. 4,500 419,344
Ensco International,
Inc. 7,200 139,500
Mobil Corp. 7,300 704,450
Noble Drilling Corp.* 1,300 28,844
Texaco, Inc. 2,200 135,025
</TABLE>
29
<PAGE> 33
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Union Pacific Resources
Group, Inc. 37,300 $ 540,850
Vastar Resources,
Inc. 1,400 82,688
------------
4,068,394
------------
PAPER & FOREST PRODUCTS -- 0.7%
Boise Cascade Corp. 1,900 67,688
Georgia Pacific Group 3,800 150,813
Kimberly-Clark Corp. 3,700 233,562
Weyerhaeuser Co. 7,300 435,718
------------
887,781
------------
PHARMACEUTICALS -- 3.5%
Allergan, Inc. 1,100 118,113
Andrx Corp.* 4,500 214,875
Biogen, Inc.* 3,300 244,613
Bristol-Meyers Squibb
Co. 10,400 798,849
IDEC Pharmaceuticals
Corp.* 1,600 185,900
Ivax Corp.* 13,900 244,119
Jones Pharma, Inc. 1,500 46,500
Lilly, (Eli) & Co. 4,600 316,825
MedImmune, Inc.* 2,100 235,200
Merck & Co., Inc. 2,700 214,819
Pfizer, Inc. 4,600 181,700
Roberts
Pharmaceutical
Corp.* 2,200 70,950
Schering-Plough Corp. 21,400 1,059,299
Warner-Lambert Co. 8,100 646,481
------------
4,578,243
------------
PRINTING & PUBLISHING -- 0.5%
Lexmark International
Group, Inc. Cl-A* 900 70,256
Tribune Co. 500 30,000
Valassis
Communications,
Inc.* 12,200 524,600
------------
624,856
------------
RAILROADS -- 0.1%
Union Pacific Corp. 1,200 66,900
------------
RESTAURANTS -- 0.4%
Brinker
International,
Inc.* 6,300 146,869
Darden Restaurants,
Inc. 2,600 49,563
Jack in the Box,
Inc.* 9,400 226,187
Tricon Global
Restaurants, Inc.* 1,600 64,300
------------
486,919
------------
RETAIL & MERCHANDISING -- 3.3%
Best Buy Co., Inc.* 3,500 194,469
Home Depot, Inc. 17,400 1,313,700
Kohl's Corp.* 1,200 89,775
TJX Companies, Inc. 1,500 40,688
Wal-Mart Stores, Inc. 43,200 2,467,799
Zale Corp.* 6,200 259,625
------------
4,366,056
------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS -- 2.1%
Applied Materials,
Inc.* 22,100 $ 1,984,856
Integrated Device
Technology, Inc.* 15,600 320,775
Lam Research Corp.* 1,500 126,656
Motorola, Inc. 2,100 204,619
National
Semiconductor
Corp.* 5,400 161,663
------------
2,798,569
------------
TELECOMMUNICATIONS -- 7.1%
AT&T Corp. 23,600 1,103,300
Bell Atlantic Corp. 5,000 324,688
BellSouth Corp. 27,200 1,223,999
Comcast Corp. Cl-A 5,100 214,838
Commscope, Inc.* 8,600 342,925
Cox Communications,
Inc. Cl-A* 4,900 222,644
EchoStar
Communications
Corp. Cl-A* 2,000 123,750
GTE Corp. 5,900 442,500
Lucent Technologies,
Inc. 18,600 1,195,050
MCI WorldCom, Inc.* 300 25,744
Nortel Networks Corp. 5,800 359,238
QUALCOMM, Inc.* 1,600 356,400
SBC Communications,
Inc. 27,135 1,382,188
Sprint Corp. (FON
Group) 20,000 1,486,249
Sprint Corp. (PCS
Group)* 2,600 215,638
U.S. West, Inc. 1,300 79,381
------------
9,098,532
------------
TRANSPORTATION -- 0.1%
Paccar, Inc. 2,700 127,238
USFreightways Corp. 1,300 58,906
------------
186,144
------------
UTILITIES -- 1.4%
DTE Energy Co. 900 29,869
Energy East Corp. 5,300 133,163
FPL Group, Inc. 2,100 105,656
LG&E Energy Corp. 8,700 191,400
Minnesota Power, Inc. 6,800 125,800
Public Service
Enterprise Group,
Inc. 11,700 462,881
Reliant Energy, Inc. 4,100 111,725
Southern Co. 9,700 257,656
</TABLE>
30
<PAGE> 34
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
Texas Utilities Co. 2,900 $ 112,375
UtiliCorp United,
Inc. 12,900 278,963
------------
1,809,488
------------
TOTAL COMMON STOCK
(Cost $65,349,427) 72,354,859
------------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000)
-----
<S> <C> <C>
CORPORATE OBLIGATIONS -- 6.5%
AIRLINES -- 0.1%
Continental Airlines,
Inc.
8.00%, 12/15/05 $ 200 186,000
------------
AUTOMOTIVE PARTS -- 0.2%
Lear Corp. 144A
7.96%, 05/15/05 250 245,313
------------
BEVERAGES -- 0.2%
Pepsi Bottling Group,
Inc. 144A
7.00%, 03/01/29 150 139,313
Pepsi Bottling
Holdings, Inc. 144A
5.625%, 02/17/09 100 90,375
------------
229,688
------------
BROADCASTING -- 0.2%
British Sky
Broadcasting
6.875%, 02/23/09 300 271,500
------------
CHEMICALS -- 0.3%
DuPont, (E.I.) de
Nemours & Co.
6.875%, 10/15/09 400 397,500
------------
CONSUMER PRODUCTS & SERVICES -- 0.1%
Fort James Corp.
6.625%, 09/15/04 150 145,688
------------
CONTAINERS & PACKAGING -- 0.1%
Owens-Illinois, Inc.
7.15%, 05/15/05 150 139,875
------------
FINANCIAL -- BANK & TRUST -- 0.4%
Fleet National Bank
5.75%, 01/15/09 200 179,000
NationsBank Corp.
6.125%, 07/15/04 200 194,000
Southern Investments
UK
6.80%, 12/01/06 100 95,125
------------
468,125
------------
FINANCIAL
SERVICES -- 1.1%
BMW Vehicle Owner
Trust
6.41%, 04/25/03 400 399,934
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
Ford Motor Credit Co.
7.375%, 10/28/09 $ 800 $ 807,999
Lehman Brothers
Holdings, Inc.
6.625%, 04/01/04 200 194,250
------------
1,402,183
------------
FOOD -- 0.2%
Kroger Co.
7.25%, 06/01/09 $ 300 $ 292,125
------------
INSURANCE -- 0.4%
Conseco, Inc.
6.40%, 06/15/01 100 97,625
9.00%, 10/15/06 400 402,000
------------
499,625
------------
MACHINERY & EQUIPMENT -- 0.3%
Caterpillar, Inc.
7.25%, 09/15/09 400 401,000
------------
OIL & GAS -- 1.1%
Enron Corp.
6.625%, 11/15/05 350 336,438
6.70%, 11/15/06 400 387,999
Petroleum Geo-Services
7.125%, 03/30/28 400 359,500
USX Corp.
6.65%, 02/01/06 300 286,875
------------
1,370,812
------------
PAPER & FOREST PRODUCTS -- 0.3%
Abitibi-Consolidated,
Inc.
8.50%, 08/01/29 400 393,500
------------
REAL ESTATE -- 0.1%
Chelsea GCA Realty,
Inc. [REIT]
7.25%, 10/21/07 200 185,500
------------
RETAIL & MERCHANDISING -- 0.7%
Home Depot, Inc. 144A
6.50%, 09/15/04 400 398,500
Rite Aid Corp.
6.70%, 12/15/01 150 122,250
Wal-Mart Stores, Inc.
6.875%, 08/10/09 400 402,000
------------
922,750
------------
TELECOMMUNICATIONS -- 0.7%
CSC Holdings, Inc.
8.125%, 07/15/09 200 200,750
GTE North, Inc.
5.65%, 11/15/08 200 180,500
Qwest Communications
International, Inc.
7.50%, 11/01/08 400 398,500
TCI Communications,
Inc.
8.75%, 08/01/15 150 167,813
------------
947,563
------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $8,651,602) 8,498,747
------------
</TABLE>
31
<PAGE> 35
ASAF AMERICAN CENTURY
STRATEGIC BALANCED FUND
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 17.6%
Federal Home Loan
Mortgage Corp.
7.00%, 06/01/14-
08/01/29 $ 1,670 $ 1,657,878
7.50%, 08/01/29 1,862 1,869,680
------------
3,527,558
------------
Federal National
Mortgage Assoc.
5.16%, 11/01/99 10,326 10,326,000
6.00%, 10/01/28 1,585 1,478,399
6.50%, 08/15/04-
01/01/28 3,924 3,814,540
7.00%, 05/01/11-
07/01/29 1,926 1,906,458
7.50%, 09/01/14-
07/01/29 1,489 1,497,094
------------
19,022,491
------------
Government National
Mortgage Assoc.
6.00%, 08/15/28 192 178,446
6.50%, 05/15/28 239 228,581
------------
407,027
------------
(Cost $23,195,479) 22,957,076
------------
U.S. TREASURY OBLIGATIONS -- 11.5%
U.S. Treasury Bonds
7.875%, 02/15/21 1,900 2,196,230
5.25%, 11/15/28-
02/15/29 300 259,553
------------
2,455,783
------------
U.S. Treasury Notes
5.875%, 09/30/02 200 200,014
5.75%, 11/30/02-
08/15/03 3,050 3,036,307
6.00%, 07/31/02-
08/15/04 250 250,781
6.625%, 07/31/01-
05/15/06 2,500 2,583,813
4.75%, 11/15/08 1,700 1,537,903
5.50%, 03/31/00-
05/15/09 4,900 4,883,749
------------
12,492,567
------------
(Cost $15,217,537) 14,948,350
------------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 1.0%
Case Equipment Loan
Trust Series 1998-B
Cl-A4
5.92%, 10/15/05 200 197,293
CIT RV Trust Series
1998-A Cl-A4
6.09%, 02/15/12 100 98,488
Comed Transitional
Funding Trust Series
1998-1 Cl-A6
5.63%, 06/25/09 100 94,037
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------
PAR
(000) VALUE
- -----------------------------------------------------
<S> <C> <C>
General Motors
Acceptance Corp.
Series 1999-Cl
Cl-A2
6.17%, 05/15/33 $ 150 $ 139,022
Morgan Stanley Capital
I 1998-WF1 Cl-A2
6.55%, 12/15/07 500 479,447
Nationslink Funding
Corp. Series 1998-2
Cl-A1
6.001%, 11/20/07 94 90,511
Nationslink Funding
Corp. Series 1999-1
Cl-A2
6.316%, 11/20/08 250 235,776
------------
(Cost $1,382,987) 1,334,574
------------
<CAPTION>
PRINCIPAL
IN LOCAL
CURRENCY
(000)
---------
<S> <C> <C>
FOREIGN BONDS -- 6.6%
AUSTRALIA -- 0.2%
Australian Government
9.50%, 08/15/03 435 307,629
------------
CANADA -- 0.3%
Canadian Government
5.00%, 03/15/00 440 299,124
6.00%, 06/01/08 100 67,714
------------
366,838
------------
DENMARK -- 0.1%
Kingdom of Denmark
8.00%, 03/15/06 450 72,234
------------
GERMANY -- 3.4%
Deutschland Republic
6.00%, 09/15/03 2,337 2,575,703
4.12%, 07/04/08 1,900 1,849,216
------------
4,424,919
------------
JAPAN -- 1.9%
Japanese Government
2.90%, 12/20/05 240,000 2,524,794
------------
UNITED KINGDOM -- 0.7%
United Kingdom
Treasury
9.00%, 10/13/08 450 904,844
------------
TOTAL FOREIGN BONDS
(Cost $8,789,084) 8,601,258
------------
</TABLE>
32
<PAGE> 36
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
SHARES VALUE
- -----------------------------------------------------
<S> <C> <C>
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 -- 98.7%
(Cost $122,590,668) 128,699,416
OTHER ASSETS LESS LIABILITIES -- 1.3% 1,703,195
------------
NET ASSETS -- 100.0% $130,402,611
============
</TABLE>
Cash with an aggregate market value of $318,750 has been segregated with the
custodian to cover margin requirements for the following open futures contracts
at October 31, 1999:
<TABLE>
<CAPTION>
EXPIRATION NUMBER OF UNREALIZED
DESCRIPTION MONTH CONTRACTS APPRECIATION
- ----------- ---------- --------- ------------
<S> <C> <C> <C>
S&P 500 Index 12/99 7 $173,100
S&P 500 Index 03/00 8 85,075
--------
$258,175
========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
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 0.7% of net assets.
See Notes to Financial Statements.
33
<PAGE> 37
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR)
(000 VALUE
- ---------------------------------------------------
<S> <C> <C>
CORPORATE OBLIGATIONS -- 92.9%
ADVERTISING -- 0.4%
Outdoor Systems, Inc.
9.375%, 10/15/06 $ 75 $ 78,000
8.875%, 06/15/07 350 357,000
------------
435,000
------------
AEROSPACE -- 0.4%
Anteon Corp.
12.00%, 05/15/09 450 434,250
------------
AUTOMOTIVE PARTS -- 3.0%
Accuride Corp. Cl-B
9.25%, 02/01/08 475 429,875
Aftermarket Technology,
Inc.
12.00%, 08/01/04 100 101,000
Aftermarket Technology,
Inc. Cl-D
12.00%, 08/01/04 325 328,250
American Axle &
Manufacturing, Inc.
144A
9.75%, 03/01/09 800 792,000
French, (J.L.)
Automotive Casting,
Inc. 144A
11.50%, 06/01/09 600 595,500
HDA Parts System, Inc.
144A
12.00%, 08/01/05 250 241,250
Lear Corp.
9.50%, 07/15/06 50 50,625
8.11%, 05/15/09 144A 700 672,315
Oxford Automotive, Inc.
10.125%, 06/15/07 300 271,500
------------
3,482,315
------------
BEVERAGES -- 0.7%
National Wine & Spirits
10.125%, 01/15/09 175 173,688
Triarc Consumer
Beverage Co. 144A
10.25%, 02/15/09 625 593,750
------------
767,438
------------
BROADCASTING -- 6.5%
Acme Television Co.
Cl-B [STEP]
10.635%, 09/30/04 575 508,875
Big City Radio, Inc.
[STEP]
13.028%, 03/15/05 450 308,250
Capstar Broadcasting
Corp.
9.25%, 07/01/07 100 102,500
Chancellor Media Corp.
9.00%, 10/01/08 1,425 1,467,750
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Chancellor Media Corp.
L.A. Cl-B
10.50%, 01/15/07 $ 50 $ 54,500
8.75%, 06/15/07 50 49,750
8.125%, 12/15/07 1,525 1,509,749
Cumulus Media, Inc.
10.375%, 07/01/08 375 388,125
Fox/Liberty Networks
LLC
8.875%, 08/15/07 400 406,000
9.709%, 08/15/07
[STEP] 525 417,375
Lamar Advertising
8.625%, 09/15/07 100 98,500
SFX Broadcasting, Inc.
Cl-B
10.75%, 05/15/06 200 223,834
Sinclair Broadcasting
Group, Inc.
10.00%, 09/30/05 175 175,000
9.00%, 07/15/07 425 399,500
8.75%, 12/15/07 425 395,250
UIH Australia Pacific,
Inc. Cl-B [STEP]
15.663%, 05/15/06 325 253,500
United International
Holdings, Inc. Cl-B
[STEP]
11.532%, 02/15/08 1,525 937,875
------------
7,696,333
------------
BUILDING MATERIALS -- 1.0%
American Builders &
Contractors Supply
Co., Inc. Cl-B
10.625%, 05/15/07 300 265,500
Building Materials
Holdings Corp.
8.625%, 12/15/06 250 236,875
Falcon Building
Products, Inc. Cl-B
[STEP]
12.198%, 06/15/07 350 260,750
Juno Lighting, Inc.
144A
11.875%, 07/01/09 150 135,750
NCI Building Systems,
Inc. Cl-B
9.25%, 05/01/09 250 232,500
------------
1,131,375
------------
BUSINESS SERVICES -- 5.0%
Dialog Corp. PLC Cl-A
11.00%, 11/15/07 425 361,250
e.spire Communications,
Inc. [STEP]
13.324%, 11/01/05 275 166,375
</TABLE>
34
<PAGE> 38
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Intermedia Communications,
Inc. [STEP]
9.733%, 05/15/06 $ 100 $ 82,500
12.25%, 03/01/09 1,300 708,500
Intermedia
Communications, Inc.
Cl-B
10.56%, 07/15/07
[STEP] 850 590,750
8.875%, 11/01/07 50 45,000
8.60%, 06/01/08 275 243,375
NEXTLINK
Communications, Inc.
9.00%, 03/15/08 150 141,375
11.077%, 04/15/08
[STEP] 950 570,000
10.75%, 06/01/09 500 511,250
12.274%, 06/01/09
[STEP] 2,100 1,238,999
Orion Network Systems
11.25%, 01/15/07 450 335,250
Sitel Corp.
9.25%, 03/15/06 375 346,875
U.S. Office Products
Co.
9.75%, 06/15/08 925 476,375
------------
5,817,874
------------
CABLE TELEVISION -- 6.0%
Charter Communication
Holdings LLC [STEP]
9.92%, 04/01/11 775 461,125
CSC Holdings, Inc.
9.25%, 11/01/05 500 510,000
9.875%, 05/15/06 400 414,000
7.875%, 12/15/07 50 49,544
9.875%, 02/15/13 300 312,000
Diamond Holdings Co.
PLC
9.125%, 02/01/08 200 199,000
Echostar DBS Corp.
9.375%, 02/01/09 1,325 1,318,374
International CableTel,
Inc. Cl-B [STEP]
9.743%, 02/01/06 125 110,313
Lenfest Communications,
Inc.
8.375%, 11/01/05 150 154,125
Pegasus Communications
Corp. Cl-B
9.625%, 10/15/05 1,000 975,000
9.75%, 12/01/06 225 219,375
Telewest Communications
PLC
10.802%, 10/01/07
[STEP] 800 733,000
11.25%, 11/01/08 200 217,000
9.25%, 04/15/09
[STEP] 144A 600 367,500
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
United Pan-Europe
Communication Corp.
[STEP] 144A
12.446%, 08/01/09 $1,800 $ 954,000
13.375%, 11/01/09 375 198,750
------------
7,193,106
------------
CAPITAL GOODS -- 0.1%
Buckeye Cellulose Corp.
9.25%, 09/15/08 100 100,500
------------
CHEMICALS -- 4.3%
General Chemical
Industry Products,
Inc. 144A
10.625%, 05/01/09 500 488,750
Huntsman Corp. 144A
9.50%, 07/01/07 625 581,250
Huntsman ICI Chemicals
144A
10.125%, 07/01/09 400 402,000
ISP Holdings, Inc. Cl-B
9.00%, 10/15/03 400 391,000
Lyondell Chemical Co.
9.625%, 05/01/07 144A 150 150,375
10.875%, 05/01/09 1,075 1,075,000
Polymer Group, Inc.
Cl-B
9.00%, 07/01/07 550 529,375
8.75%, 03/01/08 750 706,875
Sterling Chemicals,
Inc.
12.375%, 07/15/06
144A 175 170,625
11.75%, 08/15/06 450 285,750
Texas Petrochemical
Corp.
11.125%, 07/01/06 300 244,500
------------
5,025,500
------------
CLOTHING & APPAREL -- 0.6%
Boyds Collection Ltd.
9.00%, 05/15/08 90 87,975
GFSI, Inc. Cl-B
9.625%, 03/01/07 475 315,875
Pillowtex Corp.
10.00%, 11/15/06 150 54,750
Pillowtex Corp. Cl-B
9.00%, 12/15/07 575 204,125
------------
662,725
------------
COMPUTER SERVICES & SOFTWARE -- 0.3%
Alvey Systems, Inc.
11.375%, 01/31/03 35 35,875
DIVA Systems Corp. Cl-B
[STEP]
11.851%, 03/01/08 100 28,500
Verio, Inc.
11.25%, 12/01/08 250 262,188
------------
326,563
------------
</TABLE>
35
<PAGE> 39
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
CONGLOMERATES -- 0.3%
Eagle-Picher
Industries, Inc.
9.375%, 03/01/08 $ 400 $ 342,000
------------
CONSTRUCTION -- 0.8%
Building Materials
Holdings Corp. Cl-B
8.00%, 10/15/07 100 91,250
Formica Corp.
10.875%, 03/01/09 425 384,625
MMI Products, Inc. Cl-B
11.25%, 04/15/07 400 408,000
------------
883,875
------------
CONSUMER PRODUCTS & SERVICES -- 3.3%
Albecca, Inc.
10.75%, 08/15/08 350 253,750
Amscan Holdings, Inc.
9.875%, 12/15/07 425 346,375
Chattem, Inc. Cl-B
8.875%, 04/01/08 550 492,250
Collins & Aikman Floor
Coverings Corp.
10.00%, 01/15/07 150 145,500
Collins & Aikman
Products Corp.
11.50%, 04/15/06 450 430,875
Diamond Brands
Operating, Inc.
10.125%, 04/15/08 50 38,750
12.83%, 04/15/09
[STEP] 50 9,250
Glenoit Corp.
11.00%, 04/15/07 175 97,125
NBTY, Inc. Cl-B
8.625%, 09/15/07 400 342,000
Playtex Family Products
Corp.
9.00%, 12/15/03 450 444,375
Revlon Consumer
Products Corp.
8.625%, 02/01/08 1,500 817,500
Sleepmaster, Inc. 144A
11.00%, 05/15/09 150 150,750
Volume Services America
11.25%, 03/01/09 250 247,500
------------
3,816,000
------------
CONTAINERS & PACKAGING -- 1.1%
Owens-Illinois, Inc.
8.10%, 05/15/07 250 241,565
Packaging Corp. of
America, Inc. 144A
9.625%, 04/01/09 250 250,000
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Russell Stanley
Holdings, Inc.
10.875%, 02/15/09 $ 300 $ 274,500
Stone Container Corp.
12.25%, 04/01/02 400 404,000
Tekni-Plex, Inc. Cl-B
9.25%, 03/01/08 150 144,000
------------
1,314,065
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 1.3%
Amphenol Corp.
9.875%, 05/15/07 450 452,250
SCG Holdings Corp. 144A
12.00%, 08/01/09 250 256,250
Viasystems, Inc. Cl-B
9.75%, 06/01/07 100 80,500
WESCO Distribution,
Inc. Cl-B
9.125%, 06/01/08 800 720,000
------------
1,509,000
------------
ENTERTAINMENT & LEISURE -- 3.4%
AMF Group, Inc. [STEP]
16.056%, 03/15/06 512 258,560
Florida Panthers
Holdings, Inc.
9.875%, 04/15/09 700 661,500
Premier Parks, Inc.
9.25%, 04/01/06 75 71,813
9.75%, 06/15/07 500 493,750
10.321%, 04/01/08
[STEP] 2,150 1,408,249
Regal Cinemas, Inc.
9.50%, 06/01/08 1,125 860,625
True Temper Sports,
Inc.
10.875%, 12/01/08 225 215,438
------------
3,969,935
------------
ENVIRONMENTAL SERVICES -- 2.3%
Allied Waste North
America Co. 144A
10.00%, 08/01/09 1,475 1,261,125
Allied Waste North
America Co. Cl-B
7.625%, 01/01/06 1,100 959,750
7.875%, 01/01/09 525 444,938
------------
2,665,813
------------
FARMING & AGRICULTURE -- 0.1%
Royster-Clark, Inc.
144A
10.25%, 04/01/09 125 113,125
------------
FINANCIAL -- BANK & TRUST -- 1.3%
GS Escrow Corp.
7.125%, 08/01/05 1,300 1,195,441
RBF Finance Co.
11.375%, 03/15/09 350 371,000
------------
1,566,441
------------
</TABLE>
36
<PAGE> 40
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES -- 0.6%
Caithness Coso Fund
Corp. 144A
9.05%, 12/15/09 $ 500 $ 495,000
Unilab Finance Corp.
144A
12.75%, 10/01/09 250 251,250
------------
746,250
------------
FOOD -- 2.6%
Agrilink Foods, Inc.
11.875%, 11/01/08 500 445,000
Ameriserv Food
Distributor, Inc.
8.875%, 10/15/06 100 65,500
10.125%, 07/15/07 1,025 497,125
Aurora Foods, Inc.
9.875%, 02/15/07 250 255,625
Dominos, Inc. Cl-B
10.375%, 01/15/09 400 367,000
Eagle Family Foods,
Inc. Cl-B
8.75%, 01/15/08 600 465,000
International Home
Foods, Inc.
10.375%, 11/01/06 850 875,500
Jitney-Jungle Stores,
Inc.+
10.375%, 09/15/07 150 3,750
Nebco Evans Holding Co.
[STEP]
10.875%, 07/15/07 125 38,125
------------
3,012,625
------------
FURNITURE -- 0.2%
Sealy Mattress Co. Cl-B
9.875%, 12/15/07 50 48,750
10.95%, 12/15/07
[STEP] 350 236,250
------------
285,000
------------
HEALTHCARE SERVICES -- 3.4%
Alliance Imaging, Inc.
9.625%, 12/15/05 450 492,750
Columbia HCA
Healthcare, Inc.
6.91%, 06/15/05 800 724,560
Everest Healthcare
Services, Inc.
9.75%, 05/01/08 225 204,750
Genesis Health
Ventures, Inc.
9.25%, 10/01/06 200 71,000
9.875%, 01/15/09 150 56,250
Hudson Respiratory
Care, Inc.
9.125%, 04/15/08 250 196,250
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Tenet Healthcare Corp.
8.00%, 01/15/05 $ 850 $ 799,000
8.625%, 01/15/07 400 376,000
7.625%, 06/01/08 100 88,500
8.125%, 12/01/08 1,125 1,023,750
------------
4,032,810
------------
INDUSTRIAL PRODUCTS -- 1.3%
Continental Global
Group, Inc. Cl-B
11.00%, 04/01/07 100 55,500
Hexcel Corp.
9.75%, 01/15/09 475 391,875
ISG Resources, Inc.
10.00%, 04/15/08 300 268,500
Simmons Co.
10.25%, 03/15/09 75 74,250
United Industries Corp.
144A
9.875%, 04/01/09 300 270,000
URS Corp. Series B 144A
12.25%, 05/01/09 425 431,375
------------
1,491,500
------------
MACHINERY & EQUIPMENT -- 2.4%
Blount, Inc. 144A
13.00%, 08/01/09 425 438,813
Clark Materials
Handling Corp. Cl-D
10.75%, 11/15/06 150 101,250
Columbus McKinnon Corp.
8.50%, 04/01/08 150 126,750
National Equipment
Services, Inc. Cl-B
10.00%, 11/30/04 50 49,250
National Equipment
Services, Inc. Cl-D
10.00%, 11/30/04 475 467,875
Nationsrent, Inc.
10.375%, 12/15/08 450 435,375
United Rentals, Inc.
9.25%, 01/15/09 1,075 986,312
Wec Co. 144A
12.00%, 07/15/09 250 236,250
------------
2,841,875
------------
MEDICAL SUPPLIES & EQUIPMENT -- 2.5%
CONMED Corp.
9.00%, 03/15/08 625 559,375
Dade International,
Inc. Cl-B
11.125%, 05/01/06 475 491,625
</TABLE>
37
<PAGE> 41
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Fisher Scientific
International, Inc.
9.00%, 02/01/08 $ 500 $ 472,500
9.00%, 02/01/08 725 685,125
Hanger Orthopedic
Group, Inc. 144A
11.25%, 06/15/09 250 243,750
Kinetic Concepts, Inc.
Cl-B
9.625%, 11/01/07 725 474,875
------------
2,927,250
------------
METALS & MINING -- 2.8%
AEI Resources, Inc.
144A
10.50%, 12/15/05 450 398,250
11.50%, 12/15/06 300 262,500
California Steel
Industries 144A
8.50%, 04/01/09 300 286,500
Euramax International
PLC
11.25%, 10/01/06 350 351,750
Metals USA, Inc.
8.625%, 02/15/08 525 472,499
Murrin Murrin Holdings
PTY
9.375%, 08/31/07 300 259,500
National Steel Corp.
Cl-D
9.875%, 03/01/09 300 298,500
Neenah Corp.
11.125%, 05/01/07 375 347,813
Neenah Corp. Cl-B
11.125%, 05/01/07 225 208,688
Republic Technologies,
Inc. 144A
13.75%, 07/15/09 400 372,000
Ryerson Tull, Inc.
8.50%, 07/15/01 50 50,202
------------
3,308,202
------------
OFFICE EQUIPMENT -- 0.3%
Buhrmann U.S., Inc.
144A
12.25%, 11/01/09 400 398,000
------------
OIL & GAS -- 2.8%
Comstock Resources,
Inc. 144A
11.25%, 05/01/07 200 207,500
Continental Resources,
Inc.
10.25%, 08/01/08 375 315,000
Forcenergy, Inc.+
8.50%, 02/15/07 300 247,500
Forest Oil Corp.
10.50%, 01/15/06 300 307,500
Houston Exploration Co.
Cl-B
8.625%, 01/01/08 200 192,000
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Pogo Producing Co. Cl-B
10.375%, 02/15/09 $ 250 $ 260,000
Pride Petroleum
Services, Inc.
9.375%, 05/01/07 350 349,125
R&B Falcon Corp.
12.25%, 03/15/06 500 530,000
Triton Energy Ltd.
8.75%, 04/15/02 575 567,813
Universal Compression
Holdings [STEP]
9.665%, 02/15/08 325 201,500
12.454%, 02/15/09 100 55,500
------------
3,233,438
------------
PRINTING & PUBLISHING -- 0.9%
Garden State
Newspapers, Inc. Cl-B
8.75%, 10/01/09 475 440,563
Hollinger International
Publishing Co.
9.25%, 02/01/06-
03/15/07 425 418,625
Ziff-Davis, Inc.
8.50%, 05/01/08 150 139,875
------------
999,063
------------
RAILROADS -- 0.2%
Railworks Corp.
11.50%, 04/15/09 250 243,750
------------
REAL ESTATE -- 1.3%
HMH Properties, Inc.
Cl-A
7.875%, 08/01/05 400 370,000
HMH Properties, Inc.
Cl-B
7.875%, 08/01/08 825 726,000
HMH Properties, Inc.
Cl-C
8.45%, 12/01/08 450 409,500
------------
1,505,500
------------
RESTAURANTS -- 0.5%
Advantica Restaurant
Group, Inc.
11.25%, 01/15/08 250 201,250
Carrols Corp.
9.50%, 12/01/08 450 374,625
------------
575,875
------------
RETAIL & MERCHANDISING -- 0.1%
Community Distributors,
Inc. Cl-B
10.25%, 10/15/04 200 171,000
------------
</TABLE>
38
<PAGE> 42
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS -- 0.5%
Fairchild Semiconductor
Corp.
10.375%, 10/01/07
144A $ 150 $ 150,750
10.75%, 04/15/09 550 475,750
------------
626,500
------------
TELECOMMUNICATIONS -- 24.4%
American Cellular Corp.
10.50%, 05/15/08 500 540,000
Arch Communications,
Inc.
12.75%, 07/01/07 150 105,750
Call-Net Enterprises,
Inc. [STEP]
8.949%, 08/15/07 425 278,375
9.441%, 08/15/08 425 252,875
11.162%, 05/15/09 1,700 964,750
Centennial Cellular
Corp.
10.75%, 12/15/08 500 525,000
Crown Castle
International Corp.
[STEP]
10.483%, 05/15/11 1,100 654,500
11.272%, 08/01/11
144A 1,000 600,000
Dolphin Telecom PLC
[STEP] 144A
14.00%, 05/15/09 600 240,000
Hermes Europe Railtel
BV, Inc.
11.50%, 08/15/07 750 750,000
10.375%, 01/15/09 350 334,250
ICG Holdings, Inc.
[STEP]
11.727%, 05/01/06 500 383,265
10.82%, 03/15/07 525 345,471
IXC Communications,
Inc.
9.00%, 04/15/08 500 500,000
Lenfest Communications,
Inc.
8.25%, 02/15/08 250 251,250
Level 3 Communications,
Inc.
9.125%, 05/01/08 1,500 1,406,250
10.79%, 12/01/08
[STEP] 2,350 1,427,625
McLeodUSA, Inc.
9.918%, 03/01/07
[STEP] 875 693,438
8.375%, 03/15/08 150 141,000
8.125%, 02/15/09 700 651,000
MetroNet Communications
Corp. [STEP]
10.282%, 06/15/08 1,000 782,500
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Millicom International
Cellular, Inc. [STEP]
13.416%, 06/01/06 $ 850 $ 620,500
Nextel Communications,
Inc. [STEP]
10.845%, 09/15/07 700 528,500
10.628%, 02/15/08 2,650 1,894,749
Nextel International,
Inc. [STEP]
12.125%, 04/15/08 50 26,261
Nextel Partners, Inc.
[STEP]
13.273%, 02/01/09 400 250,000
NTL Communications
Corp. Cl-B
11.50%, 10/01/08 650 698,750
NTL, Inc. Cl-B [STEP]
10.369%, 04/01/08 2,125 1,444,999
10.732%, 10/01/08 1,800 1,233,000
Orange PLC
8.00%, 08/01/08 550 551,375
Paging Network, Inc.
10.125%, 08/01/07 50 15,750
10.00%, 10/15/08 325 102,375
Pathnet, Inc.
12.25%, 04/15/08 100 58,500
PSINet, Inc.
11.50%, 11/01/08 325 338,000
11.00%, 08/01/09 144A 600 618,000
PSINet, Inc. Cl-B
10.00%, 02/15/05 425 418,625
Qwest Communications
International, Inc.
[STEP]
8.24%, 10/15/07 700 553,000
RCN Corp. [STEP]
12.214%, 10/15/07 1,050 732,375
Rogers Cantel, Inc.
8.80%, 10/01/07 225 227,250
Telecommunications
Techniques Co.
9.75%, 05/15/08 1,200 1,146,000
Telesystem
International
Wireless, Inc. Cl-B
[STEP]
14.691%, 06/30/07 800 412,000
10.352%, 11/01/07 75 32,625
Teligent, Inc.
11.50%, 12/01/07 600 555,000
Teligent, Inc. Cl-B
[STEP]
14.947%, 03/01/08 650 347,750
Tritel PCS, Inc. [STEP]
144A
12.75%, 05/15/09 450 273,375
Triton PCS, Inc. [STEP]
13.458%, 05/01/08 725 503,875
U.S. Unwired, Inc.
[STEP] 144A
13.375%, 11/01/09 500 263,750
</TABLE>
39
<PAGE> 43
ASAF FEDERATED
HIGH YIELD BOND FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
US Xchange LLC
15.00%, 07/01/08 $ 400 $ 393,000
Viatel, Inc.
11.25%, 04/15/08 75 71,625
13.739%, 04/15/08
[STEP] 1,800 1,053,000
11.50%, 03/15/09 100 97,000
Williams Communications
Group, Inc.
10.875%, 10/01/09 875 903,438
Winstar Communications,
Inc. [STEP]
8.386%, 03/15/08 625 553,125
------------
28,744,871
------------
TRANSPORTATION -- 2.7%
Allied Holdings, Inc.
Cl-B
8.625%, 10/01/07 400 350,000
Ameritruck Distribution
Corp. Cl-B+*
12.25%, 11/15/05 50 2,750
Avis Rent A Car, Inc.
144A
11.00%, 05/01/09 350 362,250
Gearbulk Holding Ltd.
11.25%, 12/01/04 525 531,563
Holt Group
9.75%, 01/15/06 100 68,500
Johnstown America
Industries, Inc.
11.75%, 08/15/05 250 255,625
Motor Coach Industries,
Inc. 144A
11.25%, 05/01/09 400 404,000
Stena AB
10.50%, 12/15/05 350 343,875
8.75%, 06/15/07 900 803,250
Stena Line AB
10.625%, 06/01/08 100 70,250
------------
3,192,063
------------
UTILITIES -- 1.2%
CMS Energy Corp.
7.50%, 01/15/09 525 483,121
El Paso Electric Co.
Cl-E
9.40%, 05/01/11 300 327,609
International Utility
Structures, Inc.
10.75%, 02/01/08 125 113,125
Niagara Mohawk Power
Corp. Cl-H [STEP]
7.788%, 07/01/10 650 491,829
------------
1,415,684
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $117,522,685) 109,004,489
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 0.0%
COMPUTER SERVICES & SOFTWARE -- 0.0%
Diva Systems Corp.
Warrants* 300 2,400
------------
OIL & GAS -- 0.0%
R&B Falcon Corp.
Warrants 144A* 275 55,137
------------
TELECOMMUNICATIONS -- 0.0%
Pathnet, Inc. Warrants
144A* 100 1,013
------------
TOTAL COMMON STOCK
(Cost $0) 58,550
------------
PREFERRED STOCK -- 2.5%
BROADCASTING -- 0.9%
Benedek Communications
Corp.
11.50% [PIK] 100 77,500
Capstar Communications,
Inc. Cl-E
12.625% [PIK] 564 67,963
Cumulus Media, Inc.
Cl-A
13.75% 278 304,410
Sinclair Capital Cl-A
$11.625 5,600 562,800
------------
1,012,673
------------
CONTAINERS & PACKAGING -- 0.1%
Packaging Corp of
America, Inc.
12.375% [PIK] 144A 793 84,653
------------
FOOD -- 0.0%
Nebco Evans Holding Co.
11.25% [PIK] 645 19,673
------------
HEALTHCARE SERVICES -- 0.0%
River Holding Corp.
Cl-B
11.50% [PIK] 592 40,348
------------
OIL & GAS -- 0.4%
R&B Falcon Corp.
13.875% [PIK] 425 419,418
------------
PRINTING & PUBLISHING -- 1.1%
Primedia, Inc. Cl-D
10.00% 5,700 561,449
Primedia, Inc. Cl-F
9.20% 2,950 275,825
Primedia, Inc. Cl-H
8.625% 5,250 454,125
------------
1,291,399
------------
</TABLE>
40
<PAGE> 44
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 0.0%
Nextel Communications,
Inc. Cl-E
11.125% [PIK] 25 $ 25,875
------------
TOTAL PREFERRED STOCK
(Cost $3,078,123) 2,894,039
------------
<CAPTION>
PAR
(000)
-----
<S> <C> <C>
REPURCHASE AGREEMENTS -- 2.7%
Greenwich Capital
Markets, Inc., 5.15%,
dated 10/29/99,
maturing 11/01/99,
repurchase price
$3,182,365,
(Collateralized by U.S.
Treasury Notes, 5.75%,
par value $3,187,000,
market value
$3,239,293, due
11/30/02)
(Cost $3,181,000) $3,181 3,181,000
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.0%
Temporary Investment
Cash Fund 518 $ 518
Temporary Investment
Fund 518 518
------------
(Cost $1,036) 1,036
------------
TOTAL INVESTMENTS -- 98.1%
(Cost $123,782,844) 115,139,114
OTHER ASSETS LESS
LIABILITIES -- 1.9% 2,198,154
------------
NET ASSETS -- 100.0% $117,337,268
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
+ Illiquid security. At the end of the year these securities amounted to 0.2% 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 12.9% of net assets.
See Notes to Financial Statements.
41
<PAGE> 45
ASAF OPPENHEIMER
LARGE-CAP GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 83.0%
BROADCASTING -- 1.4%
Infinity Broadcasting
Corp.* 24,500 $ 846,781
-----------
CLOTHING & APPAREL -- 1.9%
Abercrombie & Fitch Co.
Cl-A* 18,900 515,025
Intimate Brands, Inc. 14,450 592,450
-----------
1,107,475
-----------
COMPUTER HARDWARE -- 3.3%
Apple Computer, Inc.* 8,000 641,000
Dell Computer Corp.* 11,700 469,463
EMC Corp.* 11,400 832,200
-----------
1,942,663
-----------
COMPUTER SERVICES & SOFTWARE -- 10.6%
America Online, Inc.* 9,200 1,193,125
At Home Corp.* 11,200 418,600
Cisco Systems, Inc.* 20,000 1,480,000
Citrix Systems, Inc.* 8,000 513,000
Compuware Corp.* 18,600 517,313
Microsoft Corp.* 23,100 2,138,193
-----------
6,260,231
-----------
CONGLOMERATES -- 4.1%
Tyco International Ltd. 61,000 2,436,188
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 6.4%
E-Tek Dynamics, Inc.* 7,000 466,375
Sanmina Corp.* 5,000 450,313
Solectron Corp.* 9,900 744,975
Tandy Corp.* 33,500 2,108,406
-----------
3,770,069
-----------
ENTERTAINMENT & LEISURE -- 0.5%
Royal Caribbean Cruises
Ltd. 6,000 318,375
-----------
FINANCIAL -- BANK & TRUST -- 1.0%
Fifth Third Bancorp 7,800 575,738
-----------
FINANCIAL SERVICES -- 3.8%
Citigroup, Inc. 13,000 703,625
Merrill Lynch & Co.,
Inc. 6,500 510,250
Schwab, (Charles) Corp. 26,000 1,012,375
-----------
2,226,250
-----------
HEALTHCARE SERVICES -- 1.9%
Amgen, Inc.* 14,000 1,116,500
-----------
INSURANCE -- 2.8%
American International
Group, Inc. 16,100 1,657,294
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 0.9%
Medtronic, Inc. 16,000 554,000
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
OIL & GAS -- 2.5%
Mobil Corp. 15,100 $ 1,457,150
-----------
PHARMACEUTICALS -- 4.7%
Biogen, Inc.* 16,300 1,208,238
Genentech, Inc.* 2,000 291,500
IDEC Pharmaceuticals
Corp.* 2,000 232,375
Immunex Corp.* 4,000 252,000
Waters Corp.* 15,200 807,500
-----------
2,791,613
-----------
PRINTING & PUBLISHING -- 2.3%
Lexmark International
Group, Inc. Cl-A* 17,200 1,342,675
-----------
RESTAURANTS -- 0.5%
Outback Steakhouse,
Inc.* 12,800 294,400
-----------
RETAIL & MERCHANDISING -- 14.1%
Bed, Bath & Beyond,
Inc.* 8,000 266,500
Best Buy Co., Inc.* 27,900 1,550,193
CVS Corp. 20,200 877,438
Gap, Inc. 16,850 625,556
Home Depot, Inc. 19,200 1,449,600
Kohl's Corp.* 20,100 1,503,730
Tiffany & Co. 20,500 1,219,750
Wal-Mart Stores, Inc. 14,900 851,163
-----------
8,343,930
-----------
SEMICONDUCTORS -- 10.9%
Intel Corp. 15,000 1,161,563
JDS Uniphase Corp.* 23,000 3,838,124
Vitesse Semiconductor
Corp.* 32,000 1,468,000
-----------
6,467,687
-----------
TELECOMMUNICATIONS -- 6.8%
Lucent Technologies,
Inc. 16,100 1,034,425
MCI WorldCom, Inc.* 8,000 686,500
Nortel Networks Corp. 25,700 1,591,794
Tellabs, Inc.* 11,000 695,750
-----------
4,008,469
-----------
UTILITIES -- 2.6%
AES Corp.* 10,000 564,375
Enron Corp. 23,600 942,525
-----------
1,506,900
-----------
TOTAL COMMON STOCK
(Cost $43,352,963) 49,024,388
-----------
</TABLE>
42
<PAGE> 46
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 9.7%
Temporary Investment
Cash Fund 2,858,963 $ 2,858,963
Temporary Investment
Fund 2,858,963 2,858,962
-----------
(Cost $5,717,925) 5,717,925
-----------
TOTAL INVESTMENTS -- 92.7%
(Cost $49,070,888) 54,742,313
OTHER ASSETS LESS
LIABILITIES -- 7.3% 4,329,728
-----------
NET ASSETS -- 100.0% $59,072,041
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
See Notes to Financial Statements.
43
<PAGE> 47
ASAF LORD ABBETT
GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 94.5%
AEROSPACE -- 0.6%
AlliedSignal, Inc. 15,000 $ 854,063
------------
AUTOMOBILE MANUFACTURERS -- 1.0%
Ford Motor Co. 27,000 1,481,625
------------
BROADCASTING -- 1.4%
CBS Corp.* 40,000 1,952,500
------------
CHEMICALS -- 2.9%
Dow Chemical Co. 18,000 2,128,500
Rohm & Haas Co. 50,000 1,912,500
------------
4,041,000
------------
COMPUTER HARDWARE -- 2.6%
Apple Computer, Inc.* 12,000 961,500
International
Business Machines
Corp. 27,000 2,656,125
------------
3,617,625
------------
COMPUTER SERVICES & SOFTWARE -- 7.5%
Cadence Design
Systems, Inc.* 105,000 1,594,688
First Data Corp. 35,000 1,599,063
Oracle Corp.* 35,000 1,664,688
Sun Microsystems,
Inc.* 35,000 3,703,437
Unisys Corp.* 85,000 2,061,249
------------
10,623,125
------------
CONGLOMERATES -- 1.1%
Minnesota Mining &
Manufacturing Co. 17,000 1,616,063
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.5%
Emerson Electric Co. 35,000 2,102,188
Honeywell, Inc. 20,000 2,108,750
Texas Instruments,
Inc. 40,000 3,590,000
------------
7,800,938
------------
FINANCIAL -- BANK & TRUST -- 7.9%
Bank One Corp. 60,000 2,253,750
BankAmerica Corp. 20,000 1,287,500
Chase Manhattan Corp. 30,000 2,621,250
Fleet Boston Corp. 55,000 2,399,375
Wells Fargo & Co. 55,000 2,633,124
------------
11,194,999
------------
FINANCIAL SERVICES -- 1.2%
Morgan Stanley, Dean
Witter & Co. 15,000 1,654,688
------------
FOOD -- 3.3%
Heinz, (H.J.) Co. 45,000 2,148,750
Ralston Purina Group 80,000 2,515,000
------------
4,663,750
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
HEALTHCARE SERVICES -- 1.2%
Columbia HCA
Healthcare Corp. 70,000 $ 1,688,750
------------
INSURANCE -- 8.4%
Ace Ltd. 110,000 2,138,125
Aetna, Inc. 45,000 2,261,250
American General
Corp. 45,000 3,338,437
AON Corp. 75,000 2,662,500
CIGNA Corp. 20,000 1,495,000
------------
11,895,312
------------
MACHINERY & EQUIPMENT -- 2.4%
Black & Decker Corp. 30,000 1,290,000
Deere & Co. 58,000 2,102,500
------------
3,392,500
------------
METALS & MINING -- 3.3%
Alcoa, Inc. 45,000 2,733,750
Phelps Dodge Corp. 35,000 1,973,125
------------
4,706,875
------------
OIL & GAS -- 11.7%
Atlantic Richfield
Co. 20,000 1,863,750
BP Amoco PLC [ADR] 24,000 1,386,000
Coastal Corp. 70,000 2,948,750
Mobil Corp. 35,000 3,377,499
Schlumberger Ltd. 35,000 2,119,688
Texaco, Inc. 35,000 2,148,125
Total SA [ADR] 40,000 2,667,500
------------
16,511,312
------------
PAPER & FOREST PRODUCTS -- 2.6%
International Paper
Co. 70,000 3,683,750
------------
PHARMACEUTICALS -- 4.5%
American Home
Products Corp. 70,000 3,657,500
Pharmacia & Upjohn,
Inc. 50,000 2,696,875
------------
6,354,375
------------
PRINTING & PUBLISHING -- 3.2%
Dow Jones & Co., Inc. 40,000 2,460,000
Gannett Co., Inc. 26,000 2,005,250
------------
4,465,250
------------
RETAIL & MERCHANDISING -- 2.4%
Consolidated Stores
Corp.* 100,000 1,831,250
Federated Department
Stores, Inc.* 38,000 1,622,125
------------
3,453,375
------------
</TABLE>
44
<PAGE> 48
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 13.7%
Alltel Corp. 36,000 $ 2,997,000
AT&T Corp. 70,000 3,272,499
Bell Atlantic Corp. 42,000 2,727,375
Loral Space and
Communications* 90,000 1,355,625
MCI WorldCom, Inc.* 35,000 3,003,438
MediaOne Group, Inc.* 10,000 710,625
QUALCOMM, Inc.* 13,000 2,895,750
SBC Communications,
Inc. 50,000 2,546,875
------------
19,509,187
------------
UTILITIES -- 6.1%
Carolina Power &
Light Co. 50,000 1,725,000
Dominion Resources,
Inc. 40,000 1,925,000
Duke Energy Corp. 50,000 2,825,000
FirstEnergy Corp. 85,000 2,215,313
------------
8,690,313
------------
TOTAL COMMON STOCK
(Cost $123,545,236) 133,851,375
------------
PREFERRED STOCK -- 1.9%
CONTAINERS & PACKAGING -- 0.7%
Owens - Illinois,
Inc.
4.75% [CVT] 30,000 990,000
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
UTILITIES -- 1.2%
Houston Industries,
Inc.
7.00% [CVT] 15,000 $ 1,721,250
------------
TOTAL PREFERRED STOCK
(Cost $2,678,608) 2,711,250
------------
SHORT-TERM INVESTMENTS -- 6.1%
Temporary Investment
Cash Fund 4,333,783 4,333,783
Temporary Investment
Fund 4,333,783 4,333,783
------------
(Cost $8,667,566) 8,667,566
------------
TOTAL INVESTMENTS -- 102.5%
(Cost $134,891,410) 145,230,191
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (2.5%) (3,519,528)
------------
NET ASSETS -- 100.0% $141,710,663
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
See Notes to Financial Statements.
45
<PAGE> 49
ASAF JANUS
OVERSEAS GROWTH FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 81.8%
ARGENTINA -- 0.1%
Telefonica SA [ADR]* 2,570 $ 128,339
------------
BRAZIL -- 1.0%
Telecomunicacoes
Brasileiras SA Pfd.
[ADR] 24,260 1,889,247
Telesp Celular
Participacoes SA
[ADR]* 30,385 748,231
------------
2,637,478
------------
CANADA -- 4.8%
BCE, Inc. 12,022 724,148
Bombardier, Inc. Cl-B 30,035 529,885
Corus Entertainment,
Inc.* 43,107 674,051
Le Groupe Videotron
Ltee 60,602 865,213
Nortel Networks Corp. 86,850 5,379,272
OCI Communications,
Inc.* 91,079 743,047
Rogers Communications,
Inc. Cl-B* 107,792 2,183,833
Shaw Communications,
Inc. Cl-B 33,570 1,021,319
------------
12,120,768
------------
FINLAND -- 7.1%
Nokia AB Oyj 33,093 3,784,671
Nokia Corp. Cl-A [ADR] 72,085 8,330,323
Sonera Group Oyj 176,125 5,285,064
Talentum Oyj Cl-B 17,775 231,662
Tieto Corp. Cl-B 16,811 583,083
------------
18,214,803
------------
FRANCE -- 7.8%
Atos SA* 25,741 3,295,307
Cap Gemini SA* 10,304 1,559,522
Carrefour Supermarche
SA 27,961 5,172,356
STMicroelectronics NV* 41,279 3,622,754
STMicroelectronics NV
NY Reg. 22,995 2,089,671
Total Fina SA Cl-B 14,611 1,973,360
Vivendi 27,580 2,088,581
------------
19,801,551
------------
GERMANY -- 4.9%
Intershop
Communications AG* 5,068 625,889
Mannesmann AG 56,681 8,739,585
Marschollek,
Lautenschlaeger und
Partner AG Non-
Voting Pfd. 8,409 1,765,887
Porsche AG Pfd. 484 1,322,641
------------
12,454,002
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
HONG KONG -- 3.5%
China Telecom Ltd.* 2,307,000 $ 7,898,326
China Telecom Ltd.
[ADR]* 210 14,175
Legend Holdings Ltd.* 968,000 1,034,092
------------
8,946,593
------------
INDIA -- 0.3%
Reliance Industries
[GDR] 144A* 62,694 771,763
------------
ISRAEL -- 0.7%
Check Point Software
Technologies Ltd. 2,455 284,013
Partner Communications
Co. Ltd. [ADR]* 93,445 1,471,759
------------
1,755,772
------------
ITALY -- 1.2%
Banca Popolare di
Brescia 19,683 832,684
Gucci Group Designs 1,852 148,229
Telecom Italia Mobile
SPA 197,816 1,235,012
Unicredito Italiano
SPA 175,662 821,601
------------
3,037,526
------------
JAPAN -- 20.8%
Fuji Bank Ltd.* 190,000 2,603,487
Fujitsu Ltd. 48,000 1,444,231
Internet Initiative,
Inc. [ADR]* 6,800 365,500
Ito-Yokado Co. Ltd. 11,000 879,072
Kirin Brewery Co. Ltd. 67,000 766,558
Matsushita Electric
Industrial Co. Ltd.* 1,000 167,880
NEC Corp. 112,000 2,264,468
Nippon Telegraph &
Telephone Corp. 137 2,100,421
NTT Data Corp. 97 1,533,633
NTT Mobile
Communication
Network, Inc. 704 18,686,078
Rohm Co. Ltd. 1,900 425,115
Softbank Corp.* 12,200 5,061,899
Sony Corp. 30,600 4,767,686
Takeda Chemical
Industries Ltd. 65,000 3,730,834
Tokio Marine & Fire
Insurance Co. Ltd. 31,000 405,471
Tyco International
Ltd. 154,225 6,159,361
Yamanouchi
Pharmaceutical Co.
Ltd.* 42,000 1,903,602
------------
53,265,296
------------
KOREA -- 0.7%
SK Telecom Co. Ltd.
[ADR] 145,364 1,898,817
------------
</TABLE>
46
<PAGE> 50
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
MEXICO -- 1.7%
Grupo Televisa SA
[GDR]* 37,795 $ 1,606,288
Telefonos de Mexico SA
Cl-L [ADR] 32,095 2,744,122
------------
4,350,410
------------
NETHERLANDS -- 9.4%
ASM Lithography
Holding NV* 25,891 1,825,974
ASM Lithography
Holding NV NY Reg.* 4,320 313,740
Equant NV* 1,837 178,597
Equant NV NY Reg.* 7,196 698,012
Getronics NV 64,762 3,226,426
Gucci Group NV NY Reg. 42,404 3,424,123
Koninklijke (Royal)
Philips Electronics
NV 47,190 4,835,906
Koninklijke (Royal)
Philips Electronics
NV NY Reg. 20,389 2,119,182
TNT Post Group NV 176,497 4,489,271
United Pan-Europe
Communications NV* 25,181 1,934,699
Versatel Telecom
International NV* 70,043 868,700
------------
23,914,630
------------
SINGAPORE -- 0.8%
Development Bank of
Singapore* 77,921 880,442
Singapore Press
Holdings Ltd. 68,000 1,164,776
------------
2,045,218
------------
SPAIN -- 1.0%
Argentaria Caja Postal
Y Banco Hipotecario
de Espana SA 8,577 190,213
Banco Bilbao Vizcaya
SA 28,744 386,101
Banco Santander
Central Hispano SA 32,673 338,945
Tele Pizza SA* 1,947 10,396
Telefonica SA 98,959 1,626,729
------------
2,552,384
------------
SWEDEN -- 5.2%
Assa Abloy AB Cl-B 276,452 3,070,487
Ericsson, (L.M.)
Telephone Co. [ADR] 70,730 3,023,708
Ericsson, (L.M.)
Telephone Co. Cl-B 70,363 2,921,037
Securitas AB Cl-B 130,808 1,937,139
WM-Data AB Cl-B 53,518 2,244,474
------------
13,196,845
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
SWITZERLAND -- 0.8%
ABB AG* 9,776 $ 984,824
Julius Baer Holdings
AG Cl-B 347 1,044,138
------------
2,028,962
------------
TAIWAN -- 1.0%
Taiwan Semiconductor
Manufacturing Co.
Ltd. [ADR]* 75,913 2,628,488
------------
UNITED KINGDOM -- 9.0%
Baltimore Technologies
PLC* 27,957 860,152
Capita Group PLC 46,926 622,939
CMG PLC* 18,899 733,731
Colt Telecom Group
PLC* 159,116 4,749,303
Compass Group PLC 131,500 1,406,879
Energis PLC* 13,770 438,574
Hays PLC 34,007 388,663
Logica PLC 116,025 1,771,541
Orange PLC* 35,307 878,880
Prudential Corp. PLC* 121,071 1,896,266
QXL Ltd.* 175,077 598,988
SEMA Group PLC 159,398 2,079,377
Telewest
Communications PLC* 390,993 1,669,718
Telewest
Communications PLC
Rights* 35,545 31,496
Vodafone AirTouch PLC 789,590 3,666,666
Vodafone AirTouch PLC
[ADR] 22,475 1,077,395
------------
22,870,568
------------
TOTAL FOREIGN STOCK
(Cost $167,384,585) 208,620,213
------------
U.S. STOCK -- 8.4%
BROADCASTING -- 2.1%
UnitedGlobalCom, Inc.
Cl-A* 40,690 3,540,029
UnitedGlobalCom, Inc.
Pfd. 144A* 27,815 1,665,423
------------
5,205,452
------------
COMPUTER SERVICES & SOFTWARE --1.0%
Comverse Technology,
Inc.* 15,755 1,788,193
StarMedia Network,
Inc.* 26,655 766,331
------------
2,554,524
------------
CONGLOMERATES -- 0.7%
Seagram Co. Ltd. 37,860 1,869,338
------------
</TABLE>
47
<PAGE> 51
ASAF JANUS
OVERSEAS GROWTH FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
ELECTRONIC COMPONENTS & EQUIPMENT -- 0.5%
Galileo Technology
Ltd.* 60,015 $ 1,372,843
------------
PHARMACEUTICALS -- 0.7%
QLT PhotoTherapeutics,
Inc.* 44,180 1,872,128
------------
SEMICONDUCTORS -- 1.5%
Chartered
Semiconductor
Manufacturing 17,780 590,074
Uniphase Corp.* 20,029 3,342,339
------------
3,932,413
------------
TELECOMMUNICATIONS -- 1.9%
Amdocs Ltd. 87,035 2,420,661
Firstcom Corp.* 32,720 361,965
NTL, Inc.* 24,688 1,860,820
------------
4,643,446
------------
TOTAL U.S. STOCK
(Cost $15,546,519) 21,450,144
------------
<CAPTION>
PAR
(000)
-----
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 7.8%
Federal Home Loan Bank
5.22%, 12/23/99
(Cost $19,849,200) $20,000 19,846,728
------------
COMMERCIAL PAPER -- 3.2%
Household Finance
Corp.
5.30%, 11/01/99
(Cost $8,200,000) 8,200 8,200,000
------------
TOTAL INVESTMENTS -- 101.2%
(Cost $210,980,304) 258,117,085
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.2%) (2,967,391)
------------
NET ASSETS -- 100.0% $255,149,694
============
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1999:
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE RECEIVE FOR AT VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/99 Buy CHF 135,000 $ 91,656 $ 88,801 $ (2,855)
12/99 Buy CHF 150,000 100,569 98,839 (1,730)
04/00 Buy CHF 530,000 365,039 354,041 (10,998)
11/99 Buy CAD 1,301,128 884,381 884,637 256
11/99 Buy EUR 3,858,595 4,170,835 4,064,153 (106,682)
11/99 Buy GBP 496,526 818,017 815,012 (3,005)
12/99 Buy GBP 1,200,000 2,000,382 1,973,197 (27,185)
04/00 Buy GBP 2,100,000 3,486,021 3,453,607 (32,414)
11/99 Buy HKD 12,443,399 1,601,423 1,601,444 21
05/01 Buy HKD 8,500,000 1,070,014 1,073,871 3,857
11/99 Buy JPY 43,186,338 414,175 414,142 (33)
04/00 Buy JPY 1,200,000,000 11,518,691 11,818,210 299,519
11/99 Buy SEK 1,931,097 235,836 234,492 (1,344)
----------- ----------- ---------
$26,757,039 $26,874,446 $ 117,407
=========== =========== =========
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE DELIVER FOR AT VALUE (DEPRECIATION)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/99 Sell CHF 135,000 $ 94,274 $ 88,801 $ 5,473
12/99 Sell CHF 750,000 496,838 494,196 2,642
04/00 Sell CHF 530,000 365,517 354,041 11,476
11/99 Sell CAD 300,000 206,401 204,003 2,398
04/00 Sell CAD 1,300,000 889,315 886,634 2,681
11/99 Sell EUR 5,320,326 5,532,581 5,605,797 (73,216)
12/99 Sell EUR 3,050,000 3,250,888 3,219,443 31,445
04/00 Sell EUR 8,300,000 8,983,470 8,842,343 141,127
11/99 Sell GBP 685,648 1,130,726 1,125,414 5,312
12/99 Sell GBP 3,700,000 5,908,527 6,084,026 (175,499)
04/00 Sell GBP 2,100,000 3,477,035 3,453,606 23,429
05/01 Sell HKD 56,000,000 7,048,783 7,074,915 (26,132)
11/99 Sell JPY 80,192,224 685,218 771,241 (86,023)
12/99 Sell JPY 60,000,000 500,000 578,723 (78,723)
03/00 Sell JPY 125,000,000 1,206,403 1,226,128 (19,725)
04/00 Sell JPY 1,786,000,000 17,152,886 17,596,531 (443,645)
07/01 Sell SGD 950,000 586,482 597,589 (11,107)
----------- ----------- ---------
$57,515,344 $58,203,431 $(688,087)
=========== =========== =========
</TABLE>
48
<PAGE> 52
AMERICAN SKANDIA ADVISOR FUNDS, INC.
The following is a breakdown of the foreign stock portion of the Fund, by
industry classification, as of October 31, 1999. Percentages are based on net
assets.
<TABLE>
<CAPTION>
INDUSTRY
--------
<S> <C>
Aerospace 0.2%
Automobile Manufacturers 0.5%
Beverages 0.3%
Broadcasting 0.6%
Business Services 0.2%
Cable Television 1.4%
Chemicals 2.2%
Clothing & Apparel 1.4%
Computer Hardware 1.2%
Computer Services & Software 4.5%
Conglomerates 3.6%
Consumer Products & Services 5.3%
Electronic Components & Equipment 15.1%
Entertainment & Leisure 0.6%
Financial -- Bank & Trust 2.0%
Financial Services 3.1%
Industrial Products 4.1%
Insurance 0.9%
Machinery & Equipment 0.9%
Oil & Gas 0.8%
Pharmaceuticals 0.9%
Printing & Publishing 2.6%
Retail & Merchandising 0.6%
Semiconductors 4.1%
Telecommunications 22.9%
Transportation 1.8%
----
TOTAL 81.8%
====
</TABLE>
- ----------------------------------------------------
Unless otherwise noted, all stocks are common stock. Definitions of
abbreviations are included following the Schedules of Investments.
* Non-income producing security.
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 1.0% of net assets.
See Notes to Financial Statements.
49
<PAGE> 53
ASAF MARSICO
CAPITAL GROWTH FUND
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 90.5%
ADVERTISING -- 1.0%
Young & Rubicam, Inc. 119,089 $ 5,448,322
------------
AIRLINES -- 2.0%
UAL Corp.* 162,165 11,037,355
------------
BEVERAGES -- 2.6%
Anheuser-Busch
Companies, Inc. 203,208 14,592,875
------------
BROADCASTING -- 2.0%
Clear Channel
Communications,
Inc.* 88,530 7,115,599
UnitedGlobalCom, Inc.
Cl-A* 46,889 4,079,343
------------
11,194,942
------------
COMPUTER HARDWARE -- 6.5%
Dell Computer Corp.* 262,567 10,535,501
EMC Corp.* 358,666 26,182,618
------------
36,718,119
------------
COMPUTER SERVICES & SOFTWARE -- 13.6%
America Online, Inc.* 129,351 16,775,208
Cisco Systems, Inc.* 200,868 14,864,232
Juniper Networks,
Inc.* 25,864 7,128,765
Microsoft Corp.* 280,353 25,950,174
Sun Microsystems,
Inc.* 111,961 11,846,873
------------
76,565,252
------------
CONSTRUCTION -- 0.1%
M.D.C. Holdings, Inc. 20,000 312,500
------------
CONSUMER PRODUCTS & SERVICES -- 0.7%
Estee Lauder
Companies, Inc. Cl-A 84,149 3,923,447
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 4.1%
General Electric Co. 88,571 12,006,906
Texas Instruments,
Inc. 122,220 10,969,245
------------
22,976,151
------------
ENTERTAINMENT & LEISURE -- 3.3%
Time Warner, Inc. 270,148 18,825,939
------------
EQUIPMENT SERVICES -- 1.2%
Hertz Corp. Cl-A 150,266 6,517,788
------------
FINANCIAL -- BANK & TRUST -- 0.9%
Northern Trust Corp. 53,698 5,185,213
------------
FINANCIAL SERVICES -- 9.9%
Citigroup, Inc. 523,443 28,331,353
Fannie Mae 236,355 16,722,116
Merrill Lynch & Co.,
Inc. 138,790 10,895,015
------------
55,948,484
------------
HOTELS & MOTELS -- 1.1%
Four Seasons Hotels,
Inc. 155,068 6,464,397
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
OIL & GAS -- 4.3%
Anadarko Petroleum
Corp. 109,145 $ 3,363,030
Atlantic Richfield Co. 81,469 7,591,892
Royal Dutch Petroleum
Co. 220,975 13,244,690
------------
24,199,612
------------
PHARMACEUTICALS -- 4.7%
Genentech, Inc.* 101,780 14,834,435
Pfizer, Inc. 211,020 8,335,290
Priority Healthcare
Corp. Cl-B* 162,154 3,253,215
------------
26,422,940
------------
PRINTING & PUBLISHING -- 0.3%
Houghton Mifflin Co. 44,564 1,888,400
------------
RESTAURANTS -- 1.5%
McDonald's Corp. 202,608 8,357,580
------------
RETAIL & MERCHANDISING -- 9.0%
Best Buy Co., Inc.* 82,417 4,579,295
CVS Corp. 63,269 2,748,247
Home Depot, Inc. 212,424 16,038,012
Tiffany & Co. 152,547 9,076,547
Wal-Mart Stores, Inc. 318,189 18,176,546
------------
50,618,647
------------
SEMICONDUCTORS -- 1.5%
JDS Uniphase Corp.* 51,328 8,565,360
------------
TELECOMMUNICATIONS -- 19.4%
Comcast Corp. Cl-A 54,994 2,316,622
Lucent Technologies,
Inc. 229,755 14,761,759
MCI WorldCom, Inc.* 253,509 21,754,241
MediaOne Group, Inc.* 181,994 12,932,949
QUALCOMM, Inc.* 133,708 29,783,456
Sprint Corp.
(PCS Group)* 168,538 13,978,120
Vodafone AirTouch PLC
[ADR] 252,508 12,104,602
Williams
Communications
Group, Inc.* 82,746 2,637,529
------------
110,269,278
------------
UTILITIES -- 0.8%
AES Corp. [CVT]* 91,939 4,637,173
------------
TOTAL COMMON STOCK
(Cost $424,574,799) 510,669,774
------------
FOREIGN STOCK -- 2.5%
ELECTRONIC COMPONENTS & EQUIPMENT
Sony Corp. -- (JPY)
(Cost $13,589,897) 92,300 14,380,963
------------
</TABLE>
50
<PAGE> 54
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 9.0%
Federal Home Loan Bank
5.16%, 11/01/99
(Cost $50,700,000) $50,700 $ 50,700,000
------------
CORPORATE OBLIGATIONS -- 1.0%
TELECOMMUNICATIONS
Level 3
Communications, Inc.
[CVT]
6.00%, 09/15/09
(Cost $4,400,000) 4,400 5,428,500
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.0%
Temporary Investment
Cash Fund 37,561 $ 37,561
Temporary Investment
Fund 37,560 37,560
------------
(Cost $75,121) 75,121
------------
TOTAL INVESTMENTS -- 103.0%
(Cost $493,339,817) 581,254,358
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (3.0%) (16,940,543)
------------
NET ASSETS -- 100.0% $564,313,815
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
See Notes to Financial Statements.
51
<PAGE> 55
ASAF NEUBERGER BERMAN
MID-CAP GROWTH FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 95.1%
ADVERTISING -- 1.3%
DoubleClick, Inc.* 3,100 $ 434,000
Lamar Advertising Co.* 3,900 210,600
-----------
644,600
-----------
BROADCASTING -- 4.1%
AMFM, Inc.* 13,700 958,999
Emmis Communications
Corp. Cl-A* 7,500 540,938
Entercom
Communications
Corp.* 10,200 508,088
Westwood One, Inc.* 300 13,838
-----------
2,021,863
-----------
BUSINESS SERVICES --1.6%
Digex, Inc.* 18,500 529,563
Navigant Consulting,
Inc.* 8,500 242,781
-----------
772,344
-----------
CLOTHING & APPAREL -- 2.1%
AnnTaylor Stores
Corp.* 10,900 463,931
Limited, Inc. 14,300 588,088
-----------
1,052,019
-----------
COMPUTER HARDWARE -- 1.5%
Adaptec, Inc.* 16,800 756,000
-----------
COMPUTER SERVICES & SOFTWARE -- 21.1%
BroadVision, Inc.* 3,900 284,700
CheckFree Holdings
Corp.* 21,300 796,088
Citrix Systems, Inc.* 21,400 1,372,274
CMG PLC* 3,700 404,919
Comverse Technology,
Inc.* 8,200 930,699
Covad Communications
Group, Inc. 3,900 187,200
Intuit, Inc.* 20,700 602,888
Lycos, Inc.* 7,900 422,650
Network Appliance,
Inc.* 6,900 510,600
Peregrine Systems,
Inc.* 5,700 250,088
Portal Software, Inc.* 3,100 202,663
PSINet, Inc.* 13,000 468,000
Rational Software
Corp.* 12,400 530,100
Safeguard Scientifics,
Inc.* 5,800 487,925
Safeguard Scientifics,
Inc. Rights* 490 0
Siebel Systems, Inc.* 8,400 922,424
Starmedia Network,
Inc.* 8,400 241,500
USWeb Corp.* 19,800 767,250
VERITAS Software
Corp.* 9,700 1,046,387
-----------
10,428,355
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
ELECTRONIC COMPONENTS & EQUIPMENT -- 11.5%
Altera Corp.* 14,600 $ 709,924
Broadcom Corp.* 2,600 332,313
Conexant Systems,
Inc.* 6,700 625,612
E-Tek Dynamics, Inc.* 6,700 446,388
Flextronics
International Ltd.* 5,600 397,600
Gemstar International
Group Ltd.* 9,300 807,937
Metromedia Fiber
Network, Inc. Cl-A* 18,600 614,963
Sanmina Corp.* 12,700 1,143,793
Tandy Corp.* 9,800 616,788
-----------
5,695,318
-----------
ENTERTAINMENT & LEISURE -- 4.6%
Harley-Davidson, Inc. 14,900 883,755
Park Place
Entertainment Corp.* 44,500 584,063
Royal Caribbean
Cruises Ltd. 5,200 275,925
SFX Entertainment,
Inc. Cl-A* 14,550 508,341
-----------
2,252,084
-----------
FINANCIAL
SERVICES -- 6.2%
Capital One Financial
Corp. 12,900 683,700
Donaldson, Lufkin &
Jenrette, Inc. 8,600 445,050
E*TRADE Group, Inc.* 21,000 500,063
Lehman Brothers
Holdings, Inc. 7,100 523,181
Providian Financial
Corp. 8,300 904,700
-----------
3,056,694
-----------
HEALTHCARE SERVICES -- 0.2%
Express Scripts, Inc.
Cl-A* 2,300 112,988
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 2.3%
MiniMed, Inc.* 7,400 561,013
PE Corp. - PE
Biosystems Group 8,600 557,925
-----------
1,118,938
-----------
OFFICE EQUIPMENT -- 0.6%
Staples, Inc.* 13,950 309,516
-----------
OIL & GAS -- 2.8%
Coastal Corp. 13,800 581,325
EOG Resources, Inc. 16,100 335,081
Union Pacific
Resources Group,
Inc. 31,200 452,400
-----------
1,368,806
-----------
PERSONAL SERVICES --0.9%
Cendant Corp.* 28,200 465,300
-----------
</TABLE>
52
<PAGE> 56
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS -- 7.9%
Biogen, Inc.* 12,100 $ 896,912
Gilead Sciences, Inc. 3,500 221,156
Immunex Corp.* 10,500 661,500
MedImmune, Inc.* 7,300 817,599
QLT PhotoTherapeutics,
Inc.* 8,300 351,713
Sepracor, Inc.* 5,800 482,488
Waters Corp.* 9,100 483,438
-----------
3,914,806
-----------
PRINTING & PUBLISHING -- 1.3%
Valassis
Communications,
Inc.* 14,500 623,500
-----------
RETAIL & MERCHANDISING -- 5.2%
Best Buy Co., Inc.* 11,900 661,194
Circuit City Stores,
Inc. 13,200 563,475
TJX Companies, Inc. 31,900 865,287
Williams-Sonoma, Inc.* 8,700 467,625
-----------
2,557,581
-----------
SEMICONDUCTORS -- 10.6%
JDS Uniphase Corp.* 6,800 1,134,750
Maxim Integrated
Products, Inc.* 13,500 1,065,656
Micron Technology,
Inc.* 7,100 506,319
PMC-Sierra, Inc.* 8,000 754,000
Vitesse Semiconductor
Corp.* 15,200 697,300
Xilinx, Inc.* 13,800 1,085,025
-----------
5,243,050
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 7.1%
Adelphia
Communications Corp.
Cl-A* 7,600 $ 415,150
Efficient Networks,
Inc.* 10,200 433,500
Intermedia
Communications,
Inc.* 22,500 585,000
NTL, Inc.* 12,375 932,766
Voicestream Wireless
Corp.* 7,800 770,250
WinStar
Communications,
Inc.* 9,600 372,600
-----------
3,509,266
-----------
UTILITIES -- 2.2%
Calpine Corp.* 9,000 518,625
Montana Power Co. 20,200 574,437
-----------
1,093,062
-----------
TOTAL COMMON STOCK
(Cost $38,197,770) 46,996,090
-----------
SHORT-TERM INVESTMENTS -- 5.0%
Temporary Investment
Cash Fund 1,240,373 1,240,373
Temporary Investment
Fund 1,240,372 1,240,372
-----------
(Cost $2,480,745) 2,480,745
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $40,678,515) 49,476,835
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.1%) (68,256)
-----------
NET ASSETS -- 100.0% $49,408,579
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
See Notes to Financial Statements.
53
<PAGE> 57
ASAF NEUBERGER BERMAN
MID-CAP VALUE FUND
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 91.4%
AEROSPACE -- 4.8%
General Dynamics Corp. 18,100 $ 1,003,419
General Motors Corp.
Cl-H* 14,400 1,048,500
-----------
2,051,919
-----------
AIRLINES -- 1.3%
Continental Airlines,
Inc. Cl-B* 13,500 546,750
-----------
AUTOMOTIVE PARTS -- 3.0%
Eaton Corp. 4,500 338,625
Lear Corp.* 27,200 918,000
-----------
1,256,625
-----------
BEVERAGES -- 1.2%
American National Can
Group, Inc. 41,400 517,500
-----------
BROADCASTING -- 4.0%
AT&T Corp. Liberty
Media Group Cl-A* 17,200 682,625
News Corp. Ltd. [ADR] 22,000 606,375
Scripps, (E.W.) Co.
Cl-A 9,000 415,688
-----------
1,704,688
-----------
BUILDING
MATERIALS -- 1.0%
Sherwin Williams Co. 18,700 418,413
-----------
BUSINESS SERVICES --4.3%
Comdisco, Inc. 48,000 969,000
Parametric Technology
Corp.* 44,000 838,750
-----------
1,807,750
-----------
CAPITAL GOODS -- 1.9%
SPX Corp.* 9,600 813,600
-----------
CHEMICALS -- 5.5%
Engelhard Corp. 25,400 447,675
Grace, (W.R.) & Co.* 49,000 731,937
Lyondell Chemical Co. 32,300 391,638
Praxair, Inc. 16,200 757,349
-----------
2,328,599
-----------
CLOTHING & APPAREL -- 0.2%
Neiman Marcus Group,
Inc. Cl-B* 3,977 85,260
-----------
COMPUTER SERVICES & SOFTWARE -- 4.6%
Cadence Design
Systems, Inc.* 47,300 718,369
Ceridian Corp.* 42,500 932,344
Computer Associates
International, Inc. 5,400 305,100
-----------
1,955,813
-----------
CONSUMER PRODUCTS & SERVICES -- 1.2%
Maytag Corp. 12,600 504,788
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 1.5%
UCAR International,
Inc.* 33,500 655,344
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
ENTERTAINMENT & LEISURE -- 1.1%
Mirage Resorts, Inc.* 32,300 $ 470,369
-----------
FINANCIAL -- BANK & TRUST -- 4.3%
Countrywide Credit
Industries, Inc. 24,900 845,043
Fleet Boston Corp. 13,900 606,388
Valley National
Bancorp 13,700 365,619
-----------
1,817,050
-----------
FINANCIAL SERVICES -- 7.4%
AMBAC Financial Group,
Inc. 10,400 621,400
Dun & Bradstreet Corp. 30,300 890,062
FINOVA Group, Inc. 20,400 898,874
SLM Holding Corp. 14,900 729,169
-----------
3,139,505
-----------
HEALTHCARE SERVICES -- 1.6%
Wellpoint Health
Networks, Inc.* 12,000 696,000
-----------
INSURANCE -- 3.0%
Ace Ltd. 32,300 627,831
AON Corp. 9,600 340,800
Cincinnati Financial
Corp. 8,800 315,150
-----------
1,283,781
-----------
MACHINERY & EQUIPMENT -- 2.1%
Grainger, (W.W.), Inc. 9,900 419,513
McDermott
International, Inc. 26,800 485,750
-----------
905,263
-----------
MEDICAL SUPPLIES & EQUIPMENT -- 2.8%
Becton Dickinson & Co. 23,900 606,463
Genzyme Corp.* 15,600 596,700
-----------
1,203,163
-----------
METALS & MINING -- 2.3%
AK Steel Holding Corp. 29,300 507,256
Reynolds Metals Co. 7,600 459,325
-----------
966,581
-----------
OIL & GAS -- 10.9%
Apache Corp. 12,700 495,300
Coastal Corp. 16,900 711,912
Dynegy, Inc. 22,500 514,688
Kinder Morgan, Inc. 14,000 281,750
Noble Drilling Corp.* 14,700 326,156
Tosco Corp. 17,800 450,563
Transocean Offshore,
Inc. 17,500 475,781
USX-Marathon Group,
Inc. 24,200 704,824
Williams Companies,
Inc. 18,000 675,000
-----------
4,635,974
-----------
PAPER & FOREST PRODUCTS -- 2.9%
Bowater, Inc. 14,000 735,000
Fort James Corp. 19,300 507,831
-----------
1,242,831
-----------
</TABLE>
54
<PAGE> 58
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
PRINTING & PUBLISHING -- 2.3%
Belo, (A.H.) Corp.
Cl-A 38,500 $ 784,437
Lexmark International
Group, Inc. Cl-A* 2,300 179,544
-----------
963,981
-----------
RAILROADS -- 1.7%
Kansas City Southern
Industries, Inc. 14,800 702,075
-----------
REAL ESTATE -- 1.5%
Indymac Mortgage
Holdings, Inc.
[REIT] 47,000 655,063
-----------
RETAIL & MERCHANDISING -- 3.0%
Consolidated Stores
Corp.* 40,700 745,319
Harcourt General, Inc. 13,200 508,200
-----------
1,253,519
-----------
SEMICONDUCTORS -- 0.5%
National Semiconductor
Corp.* 6,400 191,600
-----------
TELECOMMUNICATIONS -- 4.0%
American Tower Corp.
Cl-A* 23,600 449,875
Global Crossing Ltd.* 15,300 529,762
Sonera Oyj Corp.
[ADR]* 11,900 368,900
WinStar
Communications,
Inc.* 9,400 364,838
-----------
1,713,375
-----------
TRANSPORTATION -- 2.4%
Galileo International,
Inc. 21,800 655,363
Navistar International
Corp.* 8,800 366,850
-----------
1,022,213
-----------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
UTILITIES -- 3.1%
Cinergy Corp. 10,400 $ 293,800
Niagara Mohawk
Holdings, Inc.* 32,300 512,762
Unicom Corp. 13,100 501,894
-----------
1,308,456
-----------
TOTAL COMMON STOCK
(Cost $40,464,751) 38,817,848
-----------
SHORT-TERM INVESTMENTS -- 6.2%
Temporary Investment
Cash Fund 1,306,794 1,306,794
Temporary Investment
Fund 1,306,794 1,306,794
-----------
(Cost $2,613,588) 2,613,588
-----------
TOTAL INVESTMENTS -- 97.6%
(Cost $43,078,339) 41,431,436
OTHER ASSETS LESS
LIABILITIES -- 2.4% 1,028,280
-----------
NET ASSETS -- 100.0% $42,459,716
===========
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
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.)
COUNTRIES/CURRENCIES:
AUD -- Australia/Australian Dollar
CAD -- Canada/Canadian Dollar
CHF -- Switzerland/Swiss Franc
EUR -- Europe/Euro Currency
GBP -- United Kingdom/British Pound
HKD -- Hong Kong/Hong Kong Dollar
ITL -- Italy/Italian Lira
JPY -- Japan/Japanese Yen
MXP -- Mexico/Mexican Peso
SEK -- Sweden/Swedish Krona
SGD -- Singapore/Singapore Dollar
</TABLE>
See Notes to Financial Statements.
55
<PAGE> 59
OCTOBER 31, 1999
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
FOUNDERS ASAF T. ROWE AMERICAN ASAF
INTERNATIONAL JANUS PRICE SMALL CENTURY FEDERATED
SMALL SMALL-CAP COMPANY STRATEGIC HIGH YIELD
CAPITALIZATION GROWTH VALUE BALANCED BOND
FUND FUND FUND FUND FUND
-------------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in Securities at Value (A) $17,186,665 $215,325,992 $63,240,190 $128,699,416 $115,139,114
Collateral Received for Securities Lent -- 56,763,136 306,000 5,569,999 3,617,250
Cash -- 1 -- 318,750 --
Foreign Currency (B) 47,826 -- -- -- --
Receivable For:
Securities Sold 500,718 512,517 355,799 1,130,245 159,067
Dividends and Interest 18,243 27,725 32,344 650,473 2,460,351
Futures Variation Margin -- -- -- 97,789 --
Fund Shares Sold 1,135,004 6,689,835 304,575 775,562 388,159
Unrealized Appreciation on Foreign
Currency Exchange Contracts 278 -- -- -- --
Receivable from Investment Manager 27,594 -- -- 14,728 --
Deferred Organization Costs 40,702 40,702 40,702 40,702 40,702
Prepaid Expenses 23,565 26,159 24,099 22,892 23,647
----------- ------------ ----------- ------------ ------------
Total Assets 18,980,595 279,386,067 64,303,709 137,320,556 121,828,290
----------- ------------ ----------- ------------ ------------
LIABILITIES:
Cash Overdraft 515,097 -- -- -- 159,567
Payable to Investment Manager -- 11,898 17,891 -- 36,544
Unrealized Depreciation on Foreign
Currency Exchange Contracts 7,181 -- -- -- --
Payable Upon Return of Securities Lent -- 56,763,136 306,000 5,569,999 3,617,250
Payable For:
Securities Purchased 1,431,077 6,898,731 1,786,392 1,104,964 --
Fund Shares Redeemed -- 244,078 127,706 18,030 238,202
Distribution Fees 12,619 128,809 47,585 94,499 92,752
Accrued Expenses and Other Liabilities 73,032 127,331 136,502 130,453 105,686
Accrued Dividends -- -- -- -- 241,021
----------- ------------ ----------- ------------ ------------
Total Liabilities 2,039,006 64,173,983 2,422,076 6,917,945 4,491,022
----------- ------------ ----------- ------------ ------------
NET ASSETS $16,941,589 $215,212,084 $61,881,633 $130,402,611 $117,337,268
=========== ============ =========== ============ ============
COMPONENTS OF NET ASSETS
Capital Stock $ 1,259 $ 12,709 $ 6,992 $ 10,178 $ 12,848
Additional Paid-In Capital 14,708,412 166,833,902 67,979,561 122,819,591 126,317,373
Undistributed Net Investment Income (Loss) -- -- -- 483,767 --
Accumulated Net Realized Gain (Loss) on
Investments 1,213,624 2,051,631 856,163 720,055 (349,223)
Net Unrealized Appreciation (Depreciation)
on Investments 1,018,294 46,313,842 (6,961,083) 6,369,020 (8,643,730)
----------- ------------ ----------- ------------ ------------
NET ASSETS $16,941,589 $215,212,084 $61,881,633 $130,402,611 $117,337,268
=========== ============ =========== ============ ============
(A) Investments at Cost $16,170,728 $169,012,185 $70,201,273 $122,590,668 $123,782,844
=========== ============ =========== ============ ============
(B) Foreign Currency at Cost $ 48,972 $ -- $ -- $ -- $ --
=========== ============ =========== ============ ============
</TABLE>
56
<PAGE> 60
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
FOUNDERS ASAF T. ROWE AMERICAN ASAF
INTERNATIONAL JANUS PRICE SMALL CENTURY FEDERATED
SMALL SMALL-CAP COMPANY STRATEGIC HIGH YIELD
CAPITALIZATION GROWTH VALUE BALANCED BOND
FUND FUND FUND FUND FUND
-------------- ------------- ------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE:
Class A: Net Assets $2,374,130 $54,038,868 $10,881,109 $24,443,323 $16,079,404
---------- ----------- ----------- ----------- -----------
Shares Outstanding 175,059 3,163,696 1,223,081 1,902,805 1,760,803
---------- ----------- ----------- ----------- -----------
Net Asset Value and
Redemption Price
Per Share $ 13.56 $ 17.08 $ 8.90 $ 12.85 $ 9.13
========== =========== =========== =========== ===========
Divided by
(1 - Maximum
Sales Charge) 95% 95% 95% 95% 95 3/4%
---------- ----------- ----------- ----------- -----------
Offering Price
Per Share* $ 14.27 $ 17.98 $ 9.37 $ 13.53 $ 9.54
========== =========== =========== =========== ===========
Class B: Net Assets $7,722,312 $98,524,397 $23,890,289 $65,932,391 $68,159,659
---------- ----------- ----------- ----------- -----------
Shares Outstanding 574,602 5,838,635 2,701,626 5,148,401 7,462,389
---------- ----------- ----------- ----------- -----------
Net Asset Value,
Offering and
Redemption
Price Per Share $ 13.44 $ 16.87 $ 8.84 $ 12.81 $ 9.13
========== =========== =========== =========== ===========
Class C: Net Assets $2,540,530 $38,336,650 $13,163,886 $20,769,289 $13,204,895
---------- ----------- ----------- ----------- -----------
Shares Outstanding 189,145 2,268,168 1,489,931 1,622,619 1,446,075
---------- ----------- ----------- ----------- -----------
Net Asset Value,
Offering and
Redemption
Price Per Share $ 13.43 $ 16.90 $ 8.84 $ 12.80 $ 9.13
========== =========== =========== =========== ===========
Class X: Net Assets $4,304,617 $24,312,169 $13,946,349 $19,257,608 $19,893,310
---------- ----------- ----------- ----------- -----------
Shares Outstanding 320,518 1,438,545 1,577,677 1,504,380 2,178,718
---------- ----------- ----------- ----------- -----------
Net Asset Value,
Offering and
Redemption
Price Per Share $ 13.43 $ 16.90 $ 8.84 $ 12.80 $ 9.13
========== =========== =========== =========== ===========
</TABLE>
* On sales of $50,000 or more, the offering price of Class A shares is reduced.
See Notes to Financial Statements.
57
<PAGE> 61
OCTOBER 31, 1999
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF
ASAF ASAF ASAF ASAF NEUBERGER NEUBERGER
OPPENHEIMER LORD ABBETT JANUS MARSICO BERMAN BERMAN
LARGE-CAP 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) $54,742,313 $145,230,191 $258,117,085 $581,254,358 $49,476,835 $41,431,436
Collateral Received for Securities
Lent 9,831,788 17,938,097 -- 142,103,987 17,874,935 3,132,300
Cash 4,292,941 -- 586,553 -- -- --
Foreign Currency (B)
Receivable For: -- -- 315 -- -- --
Securities Sold 19,839 494,863 2,313,435 4,158,382 915,976 1,210,332
Dividends and Interest 26,911 199,023 142,375 222,624 12,650 72,207
Futures Variation Margin -- -- -- -- -- --
Fund Shares Sold 372,008 1,454,032 3,117,992 6,787,915 497,986 438,861
Unrealized Appreciation on Foreign
Currency Exchange Contracts -- -- 529,636 -- -- --
Receivable from Investment Manager -- -- -- -- 35,293 1,375
Deferred Organization Costs -- -- -- -- -- --
Prepaid Expenses 30,852 30,615 26,377 37,730 21,737 25,769
----------- ------------ ------------ ------------ ----------- -----------
Total Assets 69,316,652 165,346,821 264,833,768 734,564,996 68,835,412 46,312,280
----------- ------------ ------------ ------------ ----------- -----------
LIABILITIES:
Cash Overdraft -- 364 -- -- 651 499
Payable to Investment Manager 15,471 40,914 167,479 291,189 -- --
Unrealized Depreciation on Foreign
Currency Exchange Contracts -- -- 1,100,316 -- -- --
Payable Upon Return of Securities
Lent 9,831,788 17,938,097 -- 142,103,987 17,874,935 3,132,300
Payable For:
Securities Purchased 207,268 5,119,823 7,732,633 26,355,762 1,352,849 582,927
Fund Shares Redeemed 44,123 319,179 184,238 610,284 92,038 45,881
Distribution Fees 43,655 99,528 172,061 398,960 34,101 29,868
Accrued Expenses and Other
Liabilities 102,306 118,253 327,347 490,999 72,259 61,089
Accrued Dividends -- -- -- -- -- --
----------- ------------ ------------ ------------ ----------- -----------
Total Liabilities 10,244,611 23,636,158 9,684,074 170,251,181 19,426,833 3,852,564
----------- ------------ ------------ ------------ ----------- -----------
NET ASSETS $59,072,041 $141,710,663 $255,149,694 $564,313,815 $49,408,579 $42,459,716
=========== ============ ============ ============ =========== ===========
COMPONENTS OF NET ASSETS
Capital Stock $ 4,361 $ 11,505 $ 18,265 $ 38,874 $ 3,061 $ 3,728
Additional Paid-In Capital 51,663,736 134,414,966 214,432,711 485,495,644 42,630,299 43,320,384
Undistributed Net Investment Income
(Loss) 1,732,519 (3,054,589) (5,873,070) (9,135,755) (2,023,101) 782,507
Accumulated Net Realized Gain (Loss)
on Investments 5,671,425 10,338,781 46,571,788 87,915,052 8,798,320 (1,646,903)
----------- ------------ ------------ ------------ ----------- -----------
Net Unrealized Appreciation
(Depreciation) on Investments
NET ASSETS $59,072,041 $141,710,663 $255,149,694 $564,313,815 $49,408,579 $42,459,716
=========== ============ ============ ============ =========== ===========
(A) Investments at Cost $49,070,888 $134,891,410 $210,980,304 $493,339,817 $40,678,515 $43,078,339
=========== ============ ============ ============ =========== ===========
(B) Foreign Currency at Cost $ -- $ -- $ 304 $ -- $ -- $ --
=========== ============ ============ ============ =========== ===========
</TABLE>
58
<PAGE> 62
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF
ASAF ASAF ASAF ASAF NEUBERGER NEUBERGER
OPPENHEIMER LORD ABBETT JANUS MARSICO BERMAN BERMAN
LARGE-CAP 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> <C>
NET ASSET VALUE:
Class A: Net Assets $9,270,606 $ 28,123,296 $ 61,081,797 $103,195,999 $10,907,551 $ 8,560,674
----------- ------------ ------------ ------------ ----------- -----------
Shares Outstanding 679,902 2,281,563 4,344,115 7,078,566 672,624 749,340
----------- ------------ ------------ ------------ ----------- -----------
Net Asset Value and
Redemption Price
Per Share $ 13.64 $ 12.33 $ 14.06 $ 14.58 $ 16.22 $ 11.42
=========== ============ ============ ============ =========== ===========
Divided by
(1 - Maximum
Sales Charge) 95% 95% 95% 95% 95% 95%
----------- ------------ ------------ ------------ ----------- -----------
Offering Price
Per Share* $ 14.36 $ 12.98 $ 14.80 $ 15.35 $ 17.07 $ 12.02
=========== ============ ============ ============ =========== ===========
Class B: Net Assets $29,218,517 $ 66,008,756 $105,964,953 $285,342,300 $22,399,488 $21,560,444
----------- ------------ ------------ ------------ ----------- -----------
Shares Outstanding 2,157,030 5,357,308 7,603,107 19,663,398 1,389,541 1,893,776
----------- ------------ ------------ ------------ ----------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 13.55 $ 12.32 $ 13.94 $ 14.51 $ 16.12 $ 11.38
=========== ============ ============ ============ =========== ===========
Class C: Net Assets $7,370,553 $ 23,209,861 $ 54,100,603 $125,795,774 $ 9,674,022 $ 7,730,820
----------- ------------ ------------ ------------ ----------- -----------
Shares Outstanding 545,640 1,885,544 3,876,579 8,680,896 600,114 679,091
----------- ------------ ------------ ------------ ----------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 13.51 $ 12.31 $ 13.96 $ 14.49 $ 16.12 $ 11.38
=========== ============ ============ ============ =========== ===========
Class X: Net Assets $13,212,365 $ 24,368,750 $ 34,002,341 $ 49,979,742 $ 6,427,518 $ 4,607,778
----------- ------------ ------------ ------------ ----------- -----------
Shares Outstanding 977,966 1,980,621 2,441,424 3,450,594 398,762 405,560
----------- ------------ ------------ ------------ ----------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 13.51 $ 12.30 $ 13.93 $ 14.48 $ 16.12 $ 11.36
=========== ============ ============ ============ =========== ===========
</TABLE>
* On sales of $50,000 or more, the offering price of Class A shares is reduced.
See Notes to Financial Statements.
59
<PAGE> 63
OCTOBER 31, 1999
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) $24,993,897 $1,276,516,880 $180,102,822 $153,534,101 $179,652,618
Receivable for Investments Sold
in Corresponding Portfolios of
American Skandia Master Trust 6,997 1,336,306 159,131 473,971 1,686,396
Receivable for Fund Shares Sold 112,026 16,622,290 1,029,358 713,194 3,401,282
Receivable from Investment Manager -- -- -- 4,414 --
Deferred Organization Costs 38,695 38,696 38,697 38,696 38,695
Prepaid Expenses 21,154 52,519 24,770 22,694 30,329
----------- -------------- ------------ ------------ ------------
Total Assets 25,172,769 1,294,566,691 181,354,778 154,787,070 184,809,320
----------- -------------- ------------ ------------ ------------
LIABILITIES:
Payable for Investments Purchased
in Corresponding Portfolios of
American Skandia Master Trust 112,026 16,622,290 1,029,358 713,194 3,401,282
Payable to Investment Manager
Payable For: 3,797 1,434 -- -- --
Fund Shares Redeemed 6,997 1,336,306 159,131 473,971 1,686,396
Distribution Fees 30,938 896,464 130,366 117,954 131,793
Accrued Dividends -- -- -- 642,723 9,637
Accrued Expenses and Other Liabilities 32,668 472,537 72,760 76,815 66,378
----------- -------------- ------------ ------------ ------------
Total Liabilities 186,426 19,329,031 1,391,615 2,024,657 5,295,486
----------- -------------- ------------ ------------ ------------
NET ASSETS $24,986,343 $1,275,237,660 $179,963,163 $152,762,413 $179,513,834
=========== ============== ============ ============ ============
COMPONENTS OF NET ASSETS
Capital Stock $ 2,234 $ 64,055 $ 13,154 $ 15,238 $ 179,512
Additional Paid-In Capital 22,044,791 1,089,736,789 164,895,496 158,088,313 179,332,390
Undistributed Net Investment Income (Loss) -- -- 673,983 (188,644) --
Accumulated Net Realized Gain (Loss) on
Investments (349,819) (56,843,791) 2,717,739 (2,701,626) 1,932
Net Unrealized Appreciation (Depreciation) on
Investments 3,289,137 242,280,607 11,662,791 (2,450,868) --
----------- -------------- ------------ ------------ ------------
NET ASSETS $24,986,343 $1,275,237,660 $179,963,163 $152,762,413 $179,513,834
=========== ============== ============ ============ ============
(A) Investments at Cost $21,704,760 $1,034,236,273 $168,440,031 $155,984,969 $179,652,618
=========== ============== ============ ============ ============
</TABLE>
60
<PAGE> 64
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<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> <C>
NET ASSET VALUE:
Class A: Net Assets $4,623,226 $234,575,043 $31,959,866 $23,139,515 $43,003,741
---------- ------------ ----------- ----------- -----------
Shares Outstanding 420,593 10,678,362 2,339,274 2,288,635 43,003,406
---------- ------------ ----------- ----------- -----------
Net Asset Value and
Redemption Price
Per Share $ 10.99 $ 21.97 $ 13.66 $ 10.11 $ 1.00
========== ============ =========== =========== ===========
Divided by
(1 - Maximum
Sales Charge) 95% 95% 95% 95 3/4% 100%
---------- ------------ ----------- ----------- -----------
Offering Price
Per Share* $ 11.57 $ 23.13 $ 14.38 $ 10.56 $ 1.00
========== ============ =========== =========== ===========
Class B: Net Assets $9,256,942 $684,777,602 $79,962,364 $83,936,225 $79,202,220
---------- ------------ ----------- ----------- -----------
Shares Outstanding 824,693 35,115,038 5,840,869 8,385,796 79,202,223
---------- ------------ ----------- ----------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 11.22 $ 19.50 $ 13.69 $ 10.01 $ 1.00
========== ============ =========== =========== ===========
Class C: Net Assets $4,379,296 $222,229,979 $34,157,237 $26,112,418 $28,923,173
---------- ------------ ----------- ----------- -----------
Shares Outstanding 390,827 11,415,901 2,496,237 2,609,330 28,922,501
---------- ------------ ----------- ----------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 11.21 $ 19.47 $ 13.68 $ 10.01 $ 1.00
========== ============ =========== =========== ===========
Class X: Net Assets $6,726,879 $133,655,036 $33,883,696 $19,574,255 $28,384,700
---------- ------------ ----------- ----------- -----------
Shares Outstanding 598,049 6,845,849 2,477,655 1,954,079 28,383,768
---------- ------------ ----------- ----------- -----------
Net Asset Value,
Offering and Redemption
Price Per Share $ 11.25 $ 19.52 $ 13.68 $ 10.02 $ 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.
61
<PAGE> 65
FOR THE YEAR ENDED OCTOBER 31, 1999
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
FOUNDERS ASAF T. ROWE AMERICAN ASAF
INTERNATIONAL JANUS PRICE SMALL CENTURY FEDERATED
SMALL SMALL-CAP COMPANY STRATEGIC HIGH YIELD
CAPITALIZATION GROWTH VALUE BALANCED BOND
FUND FUND FUND FUND FUND
-------------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 38,149 $ 580,730 $ 162,162 $1,654,984 $ 8,531,231
Dividends 48,981 22,948 902,060 508,357 198,666
Foreign Taxes Withheld (5,180) (620) (68) (4,614) --
---------- ----------- ----------- ---------- -----------
Total Investment Income 81,950 603,058 1,064,154 2,158,727 8,729,897
---------- ----------- ----------- ---------- -----------
EXPENSES:
Advisory Fees 103,317 562,160 554,993 642,319 627,384
Shareholder Servicing Fees 109,282 237,978 375,101 232,693 237,126
Administration and Accounting Fees 55,499 93,570 100,499 102,076 122,344
Custodian Fees 52,315 43,428 38,939 78,532 18,334
Distribution Fees -- Class A 6,802 73,902 49,365 67,494 64,562
Distribution Fees -- Class B 31,178 259,463 199,794 323,442 476,811
Distribution Fees -- Class C 15,363 115,840 117,161 119,533 110,332
Distribution Fees -- Class X 33,781 101,514 139,309 135,725 179,982
Supplemental Distribution Fees -- 6,666 -- -- --
Audit and Legal Fees 1,966 12,974 11,850 14,853 18,657
Organization Costs 13,673 13,673 13,673 13,673 13,673
Directors' Fees 492 2,649 3,133 3,436 4,732
Registration Fees 37,044 81,405 65,063 74,051 85,727
Miscellaneous Expenses 6,794 20,898 14,622 26,231 48,085
---------- ----------- ----------- ---------- -----------
Total Expenses 467,506 1,626,120 1,683,502 1,834,058 2,007,749
Less: Reimbursement of Expenses by
Investment Manager (230,103) (319,189) (484,132) (402,807) (279,932)
Waiver of Fees by
Investment Manager -- -- -- -- --
Fees Paid Indirectly -- (6,666) -- -- --
---------- ----------- ----------- ---------- -----------
Net Expenses 237,403 1,300,265 1,199,370 1,431,251 1,727,817
---------- ----------- ----------- ---------- -----------
Net Investment Income (Loss) (155,453) (697,207) (135,216) 727,476 7,002,080
---------- ----------- ----------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) on:
Securities 1,627,328 3,607,424 1,392,258 1,971,847 (327,421)
Futures Contracts -- -- -- (57,735) --
Written Options Contracts -- -- -- -- --
Foreign Currency Transactions (67,191) 2,167 -- 83,875 --
---------- ----------- ----------- ---------- -----------
Net Realized Gain (Loss) 1,560,137 3,609,591 1,392,258 1,997,987 (327,421)
---------- ----------- ----------- ---------- -----------
Net Change in Unrealized Appreciation
(Depreciation) on:
Securities 1,080,293 46,265,212 (1,429,144) 4,674,848 (5,663,260)
Futures Contracts -- -- -- 258,175 --
Translation of Assets and
Liabilities Denominated in
Foreign Currencies 3,368 35 -- 2,097 --
---------- ----------- ----------- ---------- -----------
Net Change in Unrealized Appreciation
(Depreciation) 1,083,661 46,265,247 (1,429,144) 4,935,120 (5,663,260)
---------- ----------- ----------- ---------- -----------
Net Gain (Loss) on Investments 2,643,798 49,874,838 (36,886) 6,933,107 (5,990,681)
---------- ----------- ----------- ---------- -----------
Net Increase (Decrease) in Net Assets Resulting
from Operations $2,488,345 $49,177,631 $ (172,102) $7,660,583 $ 1,011,399
========== =========== =========== ========== ===========
</TABLE>
See Notes to Financial Statements.
62
<PAGE> 66
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF
ASAF ASAF ASAF ASAF NEUBERGER NEUBERGER
OPPENHEIMER LORD ABBETT JANUS MARSICO BERMAN BERMAN
LARGE-CAP 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>
INVESTMENT INCOME:
Interest $ 153,759 $ 242,807 $ 977,363 $ 1,429,409 $ 106,813 $ 91,154
Dividends 93,715 1,365,786 885,635 1,593,953 37,950 284,549
Foreign Taxes Withheld -- (1,708) (46,902) (44,737) -- (156)
---------- ----------- ----------- ----------- ----------- -----------
Total Investment Income 247,474 1,606,885 1,816,096 2,978,625 144,763 375,547
---------- ----------- ----------- ----------- ----------- -----------
EXPENSES:
Advisory Fees 368,000 808,861 1,437,139 2,818,404 227,549 187,268
Shareholder Servicing Fees 207,061 290,360 555,520 784,373 150,870 134,008
Administration and Accounting Fees 71,124 111,509 159,094 248,223 52,952 46,443
Custodian Fees 24,170 26,948 205,373 35,192 28,595 17,796
Distribution Fees -- Class A 28,832 73,966 150,582 262,216 27,152 20,223
Distribution Fees -- Class B 176,865 344,597 500,421 1,356,677 108,589 103,750
Distribution Fees -- Class C 51,192 130,849 283,330 654,589 54,187 40,117
Distribution Fees -- Class X 103,978 185,482 221,576 282,705 35,752 23,763
Supplemental Distribution Fees -- 26,208 21,031 20,637 5,851 20,744
Audit and Legal Fees 8,215 17,152 27,144 56,071 4,964 4,149
Organization Costs -- -- -- -- -- --
Directors' Fees 2,044 4,056 6,387 13,040 1,163 949
Registration Fees 55,974 81,130 113,088 258,494 64,074 58,381
Miscellaneous Expenses 10,588 22,099 50,934 80,101 10,079 8,925
---------- ----------- ----------- ----------- ----------- -----------
Total Expenses 1,108,043 2,123,217 3,731,619 6,870,722 771,777 666,516
Less: Reimbursement of
Expenses by
Investment Manager (231,936) (310,596) (333,601) (770,893) (224,107) (197,824)
Waiver of Fees by
Investment Manager (8,636) (161,772) (130,652) -- -- --
Fees Paid Indirectly -- (26,208) (21,031) (20,637) (5,851) (20,744)
---------- ----------- ----------- ----------- ----------- -----------
Net Expenses 867,471 1,624,641 3,246,335 6,079,192 541,819 447,948
---------- ----------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) (619,997) (17,756) (1,430,239) (3,100,567) (397,056) (72,401)
---------- ----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) on:
Securities 4,509,503 (1,864,544) (3,345,216) (8,079,193) (2,023,101) 862,653
Futures Contracts -- -- -- -- -- --
Written Options Contracts -- -- -- (106,679) -- --
Foreign Currency Transactions -- -- (966,207) -- (7) --
---------- ----------- ----------- ----------- ----------- -----------
Net Realized Gain (Loss) 4,509,503 (1,864,544) (4,311,423) (8,185,872) (2,023,108) 862,653
---------- ----------- ----------- ----------- ----------- -----------
Net Change in Unrealized
Appreciation (Depreciation) on:
Securities 4,407,755 9,399,850 45,683,029 85,728,862 8,571,273 (1,727,464)
Futures Contracts -- -- -- -- -- --
Translation of Assets and
Liabilities Denominated in
Foreign Currencies -- -- (251,520) 511 -- --
---------- ----------- ----------- ----------- ----------- -----------
Net Change in Unrealized
Appreciation (Depreciation) 4,407,755 9,399,850 45,431,509 85,729,373 8,571,273 (1,727,464)
---------- ----------- ----------- ----------- ----------- -----------
Net Gain (Loss) on Investments 8,917,258 7,535,306 41,120,086 77,543,501 6,548,165 (864,811)
---------- ----------- ----------- ----------- ----------- -----------
Net Increase (Decrease) in Net
Assets Resulting from Operations $8,297,261 $7,517,550 $39,689,847 $74,442,934 $6,151,109 $ (937,212)
========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
63
<PAGE> 67
FOR THE YEAR ENDED OCTOBER 31, 1999
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 $ 44,459 $ 6,584,137 $ 2,108,171 $ 6,642,731 $4,699,238
Dividends 335,263 1,342,055 1,386,277 -- --
Foreign Taxes Withheld (51,880) (23,013) (1,174) -- --
---------- ------------ ----------- ----------- ----------
Total Investment Income 327,842 7,903,179 3,493,274 6,642,731 4,699,238
Expenses from Corresponding Portfolios of
American Skandia Master Trust (290,199) (7,087,896) (1,022,828) (801,428) (584,434)
---------- ------------ ----------- ----------- ----------
Net Investment Income (Loss) from Corresponding
Portfolios of American Skandia Master Trust 37,643 815,283 2,470,446 5,841,303 4,114,804
---------- ------------ ----------- ----------- ----------
EXPENSES:
Shareholder Servicing Fees 146,904 1,741,738 339,852 219,645 255,176
Administration and Accounting Fees 30,001 60,000 53,000 52,999 36,646
Distribution Fees -- Class A 15,996 607,936 100,877 70,007 111,055
Distribution Fees -- Class B 57,662 3,279,348 462,979 504,909 369,569
Distribution Fees -- Class C 32,883 1,164,717 206,540 177,205 159,278
Distribution Fees -- Class X 61,840 873,700 268,978 164,863 179,037
Supplemental Distribution Fees 3,142 66,845 46,415 -- --
Audit and Legal Fees 1,943 62,198 11,485 9,853 8,924
Organization Costs 12,955 12,955 12,955 12,955 12,955
Directors' Fees 996 30,274 5,791 4,923 4,501
Registration Fees 43,112 556,476 93,359 92,057 119,927
Miscellaneous Expenses 4,072 174,025 28,311 24,858 25,600
---------- ------------ ----------- ----------- ----------
Total Expenses 411,506 8,630,212 1,630,542 1,334,274 1,282,668
Less: Reimbursement of Expenses by Investment
Manager (235,177) (1,885,197) (370,317) (330,620) (118,169)
Fees Paid Indirectly (3,142) (66,845) (46,415) -- --
---------- ------------ ----------- ----------- ----------
Net Expenses 173,187 6,678,170 1,213,810 1,003,654 1,164,499
---------- ------------ ----------- ----------- ----------
Net Investment Income (Loss) (135,544) (5,862,887) 1,256,636 4,837,649 2,950,305
---------- ------------ ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS FROM
CORRESPONDING PORTFOLIOS OF
AMERICAN SKANDIA MASTER TRUST:
Net Realized Gain (Loss) on:
Securities (278,463) (51,859,781) 3,247,433 (1,695,853) 2,598
Futures Contracts -- -- -- (1,072,511) --
Written Options Contracts -- -- -- 97,353 --
Swap Agreements -- -- -- (30,823) --
Foreign Currency Transactions (21,086) (15,752) -- (188,724) --
---------- ------------ ----------- ----------- ----------
Net Realized Gain (Loss) (299,549) (51,875,533) 3,247,433 (2,890,558) 2,598
---------- ------------ ----------- ----------- ----------
Net Change in Unrealized Appreciation
(Depreciation) on:
Securities 3,333,045 228,050,761 9,613,363 (2,874,806) --
Futures Contracts -- -- -- 5,847 --
Written Options Contracts -- -- -- 89,366 --
Swap Agreements -- -- -- (8,723) --
Translation of Assets and Liabilities Denominated
in Foreign Currencies (4,215) 42 -- 90,325 --
---------- ------------ ----------- ----------- ----------
Net Change in Unrealized Appreciation
(Depreciation) 3,328,830 228,050,803 9,613,363 (2,697,991) --
---------- ------------ ----------- ----------- ----------
Net Gain (Loss) on Investments 3,029,281 176,175,270 12,860,796 (5,588,549) 2,598
---------- ------------ ----------- ----------- ----------
Net Increase (Decrease) in Net Assets Resulting
from Operations $2,893,737 $170,312,383 $14,117,432 $ (750,900) $2,952,903
========== ============ =========== =========== ==========
</TABLE>
See Notes to Financial Statements.
64
<PAGE> 68
AMERICAN SKANDIA ADVISOR FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
FOUNDERS ASAF T. ROWE AMERICAN
INTERNATIONAL JANUS PRICE SMALL CENTURY
SMALL SMALL-CAP COMPANY STRATEGIC
CAPITALIZATION GROWTH VALUE BALANCED
FUND FUND FUND FUND
------------------------- -------------------------- ------------------------- ------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998 1999 1998 1999
----------- ----------- ------------ ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (155,453) $ (21,602) $ (697,207) $ (57,296) $ (135,216) $ (46,776) $ 727,476
Net Realized Gain (Loss) on
Investments 1,560,137 (203,090) 3,609,591 (860,753) 1,392,258 (373,253) 1,997,987
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 1,083,661 (55,153) 46,265,247 50,611 (1,429,144) (5,500,322) 4,935,120
----------- ---------- ------------ ----------- ----------- ----------- ------------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 2,488,345 (279,845) 49,177,631 (867,438) (172,102) (5,920,351) 7,660,583
----------- ---------- ------------ ----------- ----------- ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A -- (452) -- -- -- (181) (112,620)
Class B -- (125) -- -- -- (114) (136,565)
Class C -- (62) -- -- -- (35) (51,277)
Class X -- (180) -- -- -- (92) (58,449)
In Excess of Net Investment
Income:
Class A -- (74) -- -- (27,592) (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) -- -- (27,592) (10,189) (358,911)
----------- ---------- ------------ ----------- ----------- ----------- ------------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 8,904,367 5,208,868 155,373,353 10,639,455 21,076,473 44,422,288 101,103,998
----------- ---------- ------------ ----------- ----------- ----------- ------------
Net Increase in Net Assets 11,392,712 4,928,071 204,550,984 9,772,017 20,876,779 38,491,748 108,405,670
NET ASSETS:
Beginning of Period 5,548,877 620,806 10,661,100 889,083 41,004,854 2,513,106 21,996,941
----------- ---------- ------------ ----------- ----------- ----------- ------------
End of Period $16,941,589 $5,548,877 $215,212,084 $10,661,100 $61,881,633 $41,004,854 $130,402,611
=========== ========== ============ =========== =========== =========== ============
<CAPTION>
ASAF
AMERICAN
CENTURY
STRATEGIC
BALANCED
FUND
-----------
YEAR ENDED
OCTOBER 31,
1998
-----------
<S> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 79,418
Net Realized Gain (Loss) on
Investments (1,207,852)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 1,441,116
-----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 312,682
-----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income:
Class A (11,493)
Class B (9,726)
Class C (4,525)
Class X (9,794)
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)
-----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 20,468,469
-----------
Net Increase in Net Assets 20,745,613
NET ASSETS:
Beginning of Period 1,251,328
-----------
End of Period $21,996,941
===========
</TABLE>
See Notes to Financial Statements.
65
<PAGE> 69
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF ASAF
FEDERATED OPPENHEIMER LORD ABBETT JANUS
HIGH YIELD LARGE-CAP GROWTH OVERSEAS
BOND GROWTH AND INCOME GROWTH
FUND FUND FUND FUND
-------------------------- ------------------------- -------------------------- ------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998(1) 1999 1998(1) 1999
------------ ----------- ----------- ----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 7,002,080 $ 1,488,563 $ (619,997) $ (126,014) $ (17,756) $ 26,263 $ (1,430,239)
Net Realized Gain (Loss) on
Investments (327,421) (17,619) 4,509,503 (2,156,987) (1,864,544) (1,190,045) (4,311,423)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments (5,663,260) (2,955,623) 4,407,755 1,263,670 9,399,850 938,931 45,431,509
------------ ----------- ----------- ----------- ------------ ----------- ------------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 1,011,399 (1,484,679) 8,297,261 (1,019,331) 7,517,550 (224,851) 39,689,847
------------ ----------- ----------- ----------- ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A (1,066,043) (230,890) -- -- (12,015) (6,881) --
Class B (3,686,137) (635,141) -- -- (1,848) (1,202) --
Class C (853,383) (207,080) -- -- (855) (484) --
Class X (1,396,517) (415,452) -- -- (1,589) (1,389) --
In Excess of Net Investment
Income:
Class A -- -- -- -- (36,455) -- --
Class B -- -- -- -- (5,608) -- --
Class C -- -- -- -- (2,595) -- --
Class X -- -- -- -- (4,822) -- --
From Net Realized Gains:
Class A -- -- -- -- -- -- --
Class B -- -- -- -- -- -- --
Class C -- -- -- -- -- -- --
Class X -- -- -- -- -- -- --
------------ ----------- ----------- ----------- ------------ ----------- ------------
Total Distributions (7,002,080) (1,488,563) -- -- (65,787) (9,956) --
------------ ----------- ----------- ----------- ------------ ----------- ------------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 77,719,547 44,745,185 31,103,658 20,690,453 101,607,672 32,886,035 170,502,829
------------ ----------- ----------- ----------- ------------ ----------- ------------
Net Increase in Net Assets 71,728,866 41,771,943 39,400,919 19,671,122 109,059,435 32,651,228 210,192,676
NET ASSETS:
Beginning of Period 45,608,402 3,836,459 19,671,122 -- 32,651,228 -- 44,957,018
------------ ----------- ----------- ----------- ------------ ----------- ------------
End of Period $117,337,268 $45,608,402 $59,072,041 $19,671,122 $141,710,663 $32,651,228 $255,149,694
============ =========== =========== =========== ============ =========== ============
<CAPTION>
ASAF
JANUS
OVERSEAS
GROWTH
FUND
-----------
YEAR ENDED
OCTOBER 31,
1998(1)
-----------
<S> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (45,889)
Net Realized Gain (Loss) on
Investments (2,636,468)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 1,140,279
-----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations (1,542,078)
-----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income:
Class A --
Class B --
Class C --
Class X --
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 --
-----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 46,499,096
-----------
Net Increase in Net Assets 44,957,018
NET ASSETS:
Beginning of Period --
-----------
End of Period $44,957,018
===========
</TABLE>
See Notes to Financial Statements.
66
<PAGE> 70
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF
ASAF NEUBERGER NEUBERGER
MARSICO BERMAN BERMAN
CAPITAL MID-CAP MID-CAP
GROWTH GROWTH VALUE
FUND FUND FUND
-------------------------- ------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998(2) 1999 1998(2) 1999 1998(2)
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (3,100,567) $ 14,303 $ (397,056) $ (1,506) $ (72,401) $ 1,431
Net Realized Gain (Loss) on
Investments (8,185,872) (949,883) (2,023,108) 94,129 862,653 1,518
Net Change in Unrealized
Appreciation (Depreciation)
on Investments 85,729,373 2,185,679 8,571,273 227,047 (1,727,464) 80,561
------------ ----------- ----------- ---------- ----------- ----------
Net Increase (Decrease) in Net
Assets Resulting from
Operations 74,442,934 1,250,099 6,151,109 319,670 (937,212) 83,510
------------ ----------- ----------- ---------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A (14,303) -- -- -- (508) --
Class B -- -- -- -- (549) --
Class C -- -- -- -- (242) --
Class X -- -- -- -- (132) --
In Excess of Net Investment
Income:
Class A (35) -- -- -- (2,758) --
Class B -- -- -- -- (2,976) --
Class C -- -- -- -- (1,315) --
Class X -- -- -- -- (718) --
From Net Realized Gains:
Class A -- -- (20,483) -- (237) --
Class B -- -- (34,595) -- (761) --
Class C -- -- (22,944) -- (336) --
Class X -- -- (16,107) -- (162) --
------------ ----------- ----------- ---------- ----------- ----------
Total Distributions (14,338) -- (94,129) -- (10,694) --
------------ ----------- ----------- ---------- ----------- ----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 448,096,651 40,538,469 40,361,211 2,670,718 39,513,072 3,811,040
------------ ----------- ----------- ---------- ----------- ----------
Net Increase in Net Assets 522,525,247 41,788,568 46,418,191 2,990,388 38,565,166 3,894,550
NET ASSETS:
Beginning of Period 41,788,568 -- 2,990,388 -- 3,894,550 --
------------ ----------- ----------- ---------- ----------- ----------
End of Period $564,313,815 $41,788,568 $49,408,579 $2,990,388 $42,459,716 $3,894,550
============ =========== =========== ========== =========== ==========
<CAPTION>
ASAF
T. ROWE PRICE
INTERNATIONAL
EQUITY
FUND
-------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
----------- -----------
<S> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (135,544) $ (43,968)
Net Realized Gain (Loss) on
Investments (299,549) (67,792)
Net Change in Unrealized
Appreciation (Depreciation)
on Investments 3,328,830 25,778
----------- -----------
Net Increase (Decrease) in Net
Assets Resulting from
Operations 2,893,737 (85,982)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From Net Investment Income:
Class A -- --
Class B -- --
Class C -- --
Class X -- --
In Excess of Net Investment
Income:
Class A (13,643) --
Class B (6,565) --
Class C (4,600) --
Class X (9,863) --
From Net Realized Gains:
Class A -- --
Class B -- --
Class C -- --
Class X -- --
----------- -----------
Total Distributions (34,671) --
----------- -----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 9,698,559 10,953,519
----------- -----------
Net Increase in Net Assets 12,557,625 10,867,537
NET ASSETS:
Beginning of Period 12,428,718 1,561,181
----------- -----------
End of Period $24,986,343 $12,428,718
=========== ===========
</TABLE>
(1) Commenced operations on December 31, 1997.
(2) Commenced operations on August 19, 1998.
See Notes to Financial Statements.
67
<PAGE> 71
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASAF ASAF ASAF
JANUS INVESCO TOTAL
CAPITAL EQUITY RETURN
GROWTH INCOME BOND
FUND FUND FUND
----------------------------- -------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998 1999 1998
-------------- ------------ ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ (5,862,887) $ (334,631) $ 1,256,636 $ 346,202 $ 4,837,649 $ 604,031
Net Realized Gain (Loss) on
Investments (51,875,533) (4,945,536) 3,247,433 (517,156) (2,890,558) 371,331
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments 228,050,803 14,298,404 9,613,363 2,038,173 (2,697,991) 235,283
-------------- ------------ ------------ ----------- ------------ -----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 170,312,383 9,018,237 14,117,432 1,867,219 (750,900) 1,210,645
-------------- ------------ ------------ ----------- ------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From Net Investment Income:
Class A -- (3,261) (207,977) (38,382) (746,581) (81,710)
Class B -- (1,754) (267,381) (49,590) (2,433,498) (203,491)
Class C -- (551) (120,280) (19,657) (857,234) (142,796)
Class X -- (1,648) (171,251) (53,610) (800,336) (178,399)
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 -- -- -- -- (41,731) (35)
Class B -- -- -- -- (174,101) (98)
Class C -- -- -- -- (68,174) (43)
Class X -- -- -- -- (87,038) (111)
-------------- ------------ ------------ ----------- ------------ -----------
Total Distributions -- (13,455) (766,889) (161,239) (5,208,693) (606,683)
-------------- ------------ ------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 965,500,168 126,069,978 112,998,444 48,599,599 114,425,804 42,508,563
-------------- ------------ ------------ ----------- ------------ -----------
Net Increase in Net Assets 1,135,812,551 135,074,760 126,348,987 50,305,579 108,466,211 43,112,525
NET ASSETS:
Beginning of Period 139,425,109 4,350,349 53,614,176 3,308,597 44,296,202 1,183,677
-------------- ------------ ------------ ----------- ------------ -----------
End of Period $1,275,237,660 $139,425,109 $179,963,163 $53,614,176 $152,762,413 $44,296,202
============== ============ ============ =========== ============ ===========
<CAPTION>
ASAF
JPM
MONEY
MARKET
FUND
--------------------------
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
------------ -----------
<S> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 2,950,305 $ 521,976
Net Realized Gain (Loss) on
Investments 2,598 (666)
Net Change in Unrealized
Appreciation
(Depreciation) on
Investments -- --
------------ -----------
Net Increase (Decrease) in
Net Assets Resulting from
Operations 2,952,903 521,310
------------ -----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From Net Investment Income:
Class A (790,112) (105,287)
Class B (1,124,422) (132,858)
Class C (488,137) (78,804)
Class X (547,634) (205,027)
In Excess of Net Investment
Income:
Class A -- --
Class B -- --
Class C -- --
Class X -- --
From Net Realized Gains:
Class A -- (4)
Class B -- (10)
Class C -- (4)
Class X -- (7)
------------ -----------
Total Distributions (2,950,305) (522,001)
------------ -----------
CAPITAL SHARE TRANSACTIONS
(NOTE 4):
Net Increase in Net Assets
from Capital Share
Transactions 136,157,181 41,796,215
------------ -----------
Net Increase in Net Assets 136,159,779 41,795,524
NET ASSETS:
Beginning of Period 43,354,055 1,558,531
------------ -----------
End of Period $179,513,834 $43,354,055
============ ===========
</TABLE>
See Notes to Financial Statements.
68
<PAGE> 72
[This page intentionally left blank]
69
<PAGE> 73
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 1999 $ 10.27 $(0.14) $ 3.43 $ 3.29
1998 9.87 (0.02) 0.45 0.43
1997(1) 10.00 0.05 (0.18) (0.13)
Class B 1999 10.23 (0.22) 3.43 3.21
1998 9.85 (0.08) 0.46 0.38
1997(1) 10.00 0.04 (0.19) (0.15)
Class C 1999 10.22 (0.21) 3.42 3.21
1998 9.86 (0.08) 0.44 0.36
1997(1) 10.00 0.04 (0.18) (0.14)
Class X 1999 10.21 (0.19) 3.41 3.22
1998 9.84 (0.08) 0.45 0.37
1997(1) 10.00 0.04 (0.20) (0.16)
ASAF JANUS SMALL-CAP
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1999 $ 9.11 $(0.10) $ 8.07 $ 7.97
1998 9.94 (0.07) (0.76) (0.83)
1997(1) 10.00 (0.03) (0.03) (0.06)
Class B 1999 9.04 (0.17) 8.00 7.83
1998 9.93 (0.12) (0.77) (0.89)
1997(1) 10.00 (0.04) (0.03) (0.07)
Class C 1999 9.06 (0.16) 8.00 7.84
1998 9.94 (0.10) (0.78) (0.88)
1997(1) 10.00 (0.04) (0.02) (0.06)
Class X 1999 9.06 (0.15) 7.99 7.84
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 1999 $ 8.85 $ 0.02 $ 0.06 $ 0.08
1998 10.46 0.04 (1.62) (1.58)
1997(1) 10.00 0.02 0.44 0.46
Class B 1999 8.80 (0.03) 0.07 0.04
1998 10.44 (0.02) (1.61) (1.63)
1997(1) 10.00 -- 0.44 0.44
Class C 1999 8.80 (0.03) 0.07 0.04
1998 10.45 (0.02) (1.62) (1.64)
1997(1) 10.00 -- 0.45 0.45
Class X 1999 8.80 (0.03) 0.07 0.04
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 1999 $ 10.89 $ 0.19 $ 1.89 $ 2.08
1998 9.99 0.15 0.84 0.99
1997(1) 10.00 0.04 (0.05) (0.01)
Class B 1999 10.86 0.12 1.88 2.00
1998 9.96 0.09 0.85 0.94
1997(1) 10.00 0.02 (0.06) (0.04)
Class C 1999 10.87 0.11 1.87 1.98
1998 9.98 0.09 0.84 0.93
1997(1) 10.00 0.02 (0.04) (0.02)
Class X 1999 10.85 0.11 1.89 2.00
1998 9.96 0.09 0.84 0.93
1997(1) 10.00 0.02 (0.06) (0.04)
<CAPTION>
Less Distributions
------------------------------------------
From Net In Excess of From Net
Investment Net Investment Realized
Income Income Gains
---------- -------------- ------------
<S> <C> <C> <C>
ASAF FOUNDERS
INTERNATIONAL SMALL
CAPITALIZATION FUND:
- ------------------------------
- ------------------------------
Class A $ -- $ -- $--
(0.03) -- --
-- -- --
Class B -- -- --
-- -- --
-- -- --
Class C -- -- --
-- -- --
-- -- --
Class X -- -- --
-- -- --
-- -- --
ASAF JANUS SMALL-CAP
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $ -- $--
-- -- --
-- -- --
Class B -- -- --
-- -- --
-- -- --
Class C -- -- --
-- -- --
-- -- --
Class X -- -- --
-- -- --
-- -- --
ASAF T. ROWE PRICE SMALL COMPANY
VALUE FUND:
- ------------------------------
- ------------------------------
Class A $ -- $(0.03) $--
-- (0.03) --
-- -- --
Class B -- -- --
-- (0.01) --
-- -- --
Class C -- -- --
-- (0.01) --
-- -- --
Class X -- -- --
-- (0.01) --
-- -- --
ASAF AMERICAN
CENTURY STRATEGIC
BALANCED FUND:
- ------------------------------
- ------------------------------
Class A $(0.12) $ -- $--
(0.09) -- --
-- -- --
Class B (0.05) -- --
(0.04) -- --
-- -- --
Class C (0.05) -- --
(0.04) -- --
-- -- --
Class X (0.05) -- --
(0.04) -- --
-- -- --
</TABLE>
70
<PAGE> 74
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios of Expenses
Supplemental Data to Average Net Assets(3)
------------------------------------- ------------------------------------------
Net Asset Net Assets at Portfolio Net After Expense Before Expense
Total Value Total End of Period Turnover Operating Reimbursement Reimbursement
Distributions End of Period Return(2) (in 000s) Rate Expenses and Waiver(4) and Waiver(4)
------------- ------------- --------- ------------- --------- --------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $13.56 32.04% $ 2,374 268% 2.10% 2.10% 4.53%
(0.03) 10.27 4.32% 886 49% 2.10% 2.10% 9.20%
-- 9.87 (1.30%) 106 -- 2.10% 2.10% 136.49%
-- 13.44 31.38% 7,722 268% 2.60% 2.60% 5.04%
-- 10.23 3.90% 1,387 49% 2.60% 2.60% 9.80%
-- 9.85 (1.50%) 230 -- 2.60% 2.60% 90.64%
-- 13.43 31.41% 2,540 268% 2.60% 2.60% 5.05%
-- 10.22 3.69% 872 49% 2.60% 2.60% 9.72%
-- 9.86 (1.40%) 79 -- 2.60% 2.60% 55.02%
-- 13.43 31.54% 4,305 268% 2.60% 2.60% 5.07%
-- 10.21 3.80% 2,404 49% 2.60% 2.60% 9.58%
-- 9.84 (1.60%) 206 -- 2.60% 2.60% 54.45%
$ -- $17.08 87.80% $54,039 74% 1.70% 1.71% 2.20%
-- 9.11 (8.45%) 1,801 94% 1.70% 1.70% 6.38%
-- 9.94 (0.60%) 193 -- 1.70% 1.70% 105.48%
-- 16.87 86.73% 98,524 74% 2.20% 2.21% 2.69%
-- 9.04 (8.96%) 2,685 94% 2.20% 2.20% 6.86%
-- 9.93 (0.70%) 353 -- 2.20% 2.20% 57.99%
-- 16.90 86.64% 38,337 74% 2.20% 2.21% 2.73%
-- 9.06 (8.85%) 2,090 94% 2.20% 2.20% 6.60%
-- 9.94 (0.60%) 74 -- 2.20% 2.20% 42.48%
-- 16.90 86.53% 24,312 74% 2.20% 2.21% 2.82%
-- 9.06 (8.76%) 4,085 94% 2.20% 2.20% 6.69%
-- 9.93 (0.70%) 270 -- 2.20% 2.20% 47.29%
$(0.03) $ 8.90 0.86% $10,881 35% 1.75% 1.75% 2.61%
(0.03) 8.85 (15.13%) 7,155 4% 1.75% 1.75% 3.51%
-- 10.46 4.60% 383 -- 1.75% 1.75% 54.47%
-- 8.84 0.45% 23,890 35% 2.25% 2.25% 3.13%
(0.01) 8.80 (15.63%) 13,184 4% 2.25% 2.25% 4.03%
-- 10.44 4.40% 1,155 -- 2.25% 2.25% 30.14%
-- 8.84 0.45% 13,164 35% 2.25% 2.25% 3.13%
(0.01) 8.80 (15.71%) 8,298 4% 2.25% 2.25% 3.97%
-- 10.45 4.50% 335 -- 2.25% 2.25% 33.60%
-- 8.84 0.45% 13,947 35% 2.25% 2.25% 3.12%
(0.01) 8.80 (15.63%) 12,368 4% 2.25% 2.25% 4.00%
-- 10.44 4.40% 640 -- 2.25% 2.25% 22.43%
$(0.12) $12.85 19.10% $24,443 104% 1.60% 1.60% 2.15%
(0.09) 10.89 9.93% 3,359 93% 1.60% 1.60% 4.32%
-- 9.99 (0.10%) 257 2% 1.60% 1.60% 37.87%
(0.05) 12.81 18.46% 65,933 104% 2.10% 2.10% 2.67%
(0.04) 10.86 9.45% 8,272 93% 2.10% 2.10% 4.65%
-- 9.96 (0.40%) 381 2% 2.10% 2.10% 29.90%
(0.05) 12.80 18.26% 20,769 104% 2.10% 2.10% 2.67%
(0.04) 10.87 9.33% 3,202 93% 2.10% 2.10% 4.77%
-- 9.98 (0.20%) 215 2% 2.10% 2.10% 38.96%
(0.05) 12.80 18.48% 19,258 104% 2.10% 2.10% 2.67%
(0.04) 10.85 9.34% 7,164 93% 2.10% 2.10% 4.66%
-- 9.96 (0.40%) 398 2% 2.10% 2.10% 26.66%
<CAPTION>
Ratio of Net Investment
Income (Loss) to
Average Net Assets(3)
-----------------------
<S> <C>
(1.19%)
(0.28%)
2.03%
(1.84%)
(0.74%)
1.62%
(1.74%)
(0.79%)
1.72%
(1.63%)
(0.76%)
1.58%
(0.73%)
(0.75%)
(1.16%)
(1.24%)
(1.26%)
(1.73%)
(1.25%)
(1.13%)
(1.73%)
(1.21%)
(1.19%)
(1.70%)
0.17%
0.20%
0.69%
(0.35%)
(0.30%)
0.17%
(0.34%)
(0.32%)
0.02%
(0.31%)
(0.32%)
0.19%
1.44%
1.30%
1.56%
0.94%
0.80%
0.79%
0.92%
0.79%
0.78%
0.88%
0.79%
1.07%
</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.
(4) Includes commissions received by American Skandia Marketing, Incorporated
under the Funds' Supplemental Distribution Plan, as described in Note 3 to
the Financial Statements.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
71
<PAGE> 75
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 FEDERATED
HIGH YIELD BOND FUND:
- ------------------------------
- ------------------------------
Class A 1999 $ 9.38 $ 0.80 $(0.25) $0.55
1998 9.93 0.74 (0.55) 0.19
1997(1) 10.00 0.05 (0.07) (0.02)
Class B 1999 9.39 0.75 (0.26) 0.49
1998 9.93 0.69 (0.54) 0.15
1997(1) 10.00 0.04 (0.07) (0.03)
Class C 1999 9.38 0.75 (0.25) 0.50
1998 9.93 0.69 (0.55) 0.14
1997(1) 10.00 0.03 (0.07) (0.04)
Class X 1999 9.39 0.75 (0.26) 0.49
1998 9.93 0.69 (0.54) 0.15
1997(1) 10.00 0.04 (0.07) (0.03)
ASAF OPPENHEIMER
LARGE-CAP GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1999 $ 10.44 $(0.15) $ 3.35 $3.20
1998(5) 10.00 (0.10) 0.54 0.44
Class B 1999 10.43 (0.21) 3.33 3.12
1998(5) 10.00 (0.14) 0.57 0.43
Class C 1999 10.40 (0.21) 3.32 3.11
1998(5) 10.00 (0.14) 0.54 0.40
Class X 1999 10.41 (0.21) 3.31 3.10
1998(5) 10.00 (0.14) 0.55 0.41
ASAF LORD ABBETT GROWTH
AND INCOME FUND:
- ------------------------------
- ------------------------------
Class A 1999 $ 10.52 $ 0.06 $ 1.80 $1.86
1998(5) 10.00 0.05 0.50 0.55
Class B 1999 10.53 (0.01) 1.81 1.80
1998(5) 10.00 0.01 0.52 0.53
Class C 1999 10.51 (0.01) 1.82 1.81
1998(5) 10.00 0.01 0.50 0.51
Class X 1999 10.52 (0.01) 1.80 1.79
1998(5) 10.00 0.01 0.51 0.52
ASAF JANUS OVERSEAS
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A 1999 $ 10.55 $(0.09) $ 3.60 $3.51
1998(5) 10.00 0.01 0.54 0.55
Class B 1999 10.51 (0.15) 3.58 3.43
1998(5) 10.00 (0.04) 0.55 0.51
Class C 1999 10.52 (0.15) 3.59 3.44
1998(5) 10.00 (0.04) 0.56 0.52
Class X 1999 10.50 (0.14) 3.57 3.43
1998(5) 10.00 (0.04) 0.54 0.50
<CAPTION>
Less Distributions
--------------------------------------
From Net In Excess of From Net
Investment Net Investment Realized
Income Income Gains
---------- -------------- --------
<S> <C> <C> <C>
ASAF FEDERATED
HIGH YIELD BOND FUND:
- ------------------------------
- ------------------------------
Class A $(0.80) $ -- $--
(0.74) -- --
(0.05) -- --
Class B (0.75) -- --
(0.69) -- --
(0.04) -- --
Class C (0.75) -- --
(0.69) -- --
(0.03) -- --
Class X (0.75) -- --
(0.69) -- --
(0.04) -- --
ASAF OPPENHEIMER
LARGE-CAP GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $ -- $--
-- -- --
Class B -- -- --
-- -- --
Class C -- -- --
-- -- --
Class X -- -- --
-- -- --
ASAF LORD ABBETT GROWTH
AND INCOME FUND:
- ------------------------------
- ------------------------------
Class A $(0.01) $(0.04) $--
(0.03) -- --
Class B -- (0.01) --
-- -- --
Class C -- (0.01) --
-- -- --
Class X -- (0.01) --
-- -- --
ASAF JANUS OVERSEAS
GROWTH FUND:
- ------------------------------
- ------------------------------
Class A $ -- $ -- $--
-- -- --
Class B -- -- --
-- -- --
Class C -- -- --
-- -- --
Class X -- -- --
-- -- --
</TABLE>
72
<PAGE> 76
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Supplemental Data Ratios of Expenses to Average Net Assets(3)
------------------------------------- --------------------------------------------
Net Asset Net Assets at Portfolio Net After Expense Before Expense
Total Value Total End of Period Turnover Operating Reimbursement Reimbursement
Distributions End of Period Return(2) (in 000s) Rate Expenses and Waiver(4) and Waiver(4)
------------- ------------- --------- ------------- --------- --------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.80) $ 9.13 5.70% $ 16,079 18% 1.50% 1.50% 1.81%
(0.74) 9.38 1.67% 6,979 22% 1.50% 1.50% 2.90%
(0.05) 9.93 (0.23%) 2,154 11% 1.50% 1.50% 30.49%
(0.75) 9.13 5.05% 68,160 18% 2.00% 2.00% 2.31%
(0.69) 9.39 1.25% 20,495 22% 2.00% 2.00% 3.32%
(0.04) 9.93 (0.30%) 920 11% 2.00% 2.00% 30.22%
(0.75) 9.13 5.05% 13,205 18% 2.00% 2.00% 2.32%
(0.69) 9.38 1.26% 5,732 22% 2.00% 2.00% 3.41%
(0.03) 9.93 (0.36%) 206 11% 2.00% 2.00% 29.26%
(0.75) 9.13 5.06% 19,893 18% 2.00% 2.00% 2.32%
(0.69) 9.39 1.26% 12,402 22% 2.00% 2.00% 3.33%
(0.04) 9.93 (0.25%) 556 11% 2.00% 2.00% 30.95%
$ -- $13.64 30.65% $ 9,271 320% 1.80% 1.80% 2.41%
-- 10.44 4.40% 2,690 207% 1.80% 1.80% 4.29%
-- 13.55 29.91% 29,219 320% 2.30% 2.30% 2.91%
-- 10.43 4.30% 7,468 207% 2.30% 2.30% 4.77%
-- 13.51 29.90% 7,371 320% 2.30% 2.30% 2.92%
-- 10.40 4.00% 2,634 207% 2.30% 2.30% 4.67%
-- 13.51 29.78% 13,212 320% 2.30% 2.30% 2.93%
-- 10.41 4.10% 6,879 207% 2.30% 2.30% 4.77%
$(0.05) $12.33 17.72% $ 28,123 47% 1.60% 1.63% 2.21%
(0.03) 10.52 5.48% 5,572 42% 1.60% 1.60% 3.57%
(0.01) 12.32 17.05% 66,009 47% 2.10% 2.13% 2.71%
-- 10.53 5.32% 10,710 42% 2.10% 2.10% 4.06%
(0.01) 12.31 17.18% 23,210 47% 2.10% 2.13% 2.72%
-- 10.51 5.12% 5,019 42% 2.10% 2.10% 4.01%
(0.01) 12.30 16.97% 24,369 47% 2.10% 2.13% 2.72%
-- 10.52 5.22% 11,350 42% 2.10% 2.10% 3.98%
$ -- $14.06 33.18% $ 61,082 71% 2.10% 2.12% 2.47%
-- 10.55 5.50% 8,812 101% 2.10% 2.10% 4.12%
-- 13.94 32.54% 105,965 71% 2.60% 2.62% 2.97%
-- 10.51 5.10% 15,339 101% 2.60% 2.60% 4.58%
-- 13.96 32.60% 54,101 71% 2.60% 2.62% 2.97%
-- 10.52 5.20% 9,580 101% 2.60% 2.60% 4.58%
-- 13.93 32.57% 34,002 71% 2.60% 2.62% 2.98%
-- 10.50 5.00% 11,226 101% 2.60% 2.60% 4.60%
<CAPTION>
Ratio of Net Investment
Income (Loss) to
Average Net Assets(3)
-----------------------
<S> <C>
8.26%
7.42%
4.76%
7.73%
6.90%
3.15%
7.74%
6.96%
3.55%
7.76%
6.96%
3.65%
(1.15%)
(1.12%)
(1.66%)
(1.62%)
(1.68%)
(1.62%)
(1.68%)
(1.62%)
0.39%
0.62%
(0.13%)
0.14%
(0.12%)
0.15%
(0.08%)
0.17%
(0.70%)
0.06%
(1.22%)
(0.44%)
(1.21%)
(0.45%)
(1.19%)
(0.41%)
</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.
(4) Includes commissions received by American Skandia Marketing, Incorporated
under the Funds' Supplemental Distribution Plan, as described in Note 3 to
the Financial Statements.
(5) Commenced operations on December 31, 1997.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
73
<PAGE> 77
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 MARSICO
CAPITAL GROWTH FUND:
- --------------------------------
- --------------------------------
Class A 1999 $ 10.13 $(0.09) $4.55 $4.46
1998(6) 10.00 0.01 0.12 0.13
Class B 1999 10.12 (0.16) 4.55 4.39
1998(6) 10.00 -- 0.12 0.12
Class C 1999 10.11 (0.16) 4.54 4.38
1998(6) 10.00 -- 0.11 0.11
Class X 1999 10.11 (0.15) 4.52 4.37
1998(6) 10.00 -- 0.11 0.11
ASAF NEUBERGER BERMAN
MID-CAP GROWTH FUND:
- --------------------------------
- --------------------------------
Class A 1999 $ 11.81 $(0.17) $4.73 $4.56
1998(6) 10.00 (0.01) 1.82 1.81
Class B 1999 11.79 (0.25) 4.73 4.48
1998(6) 10.00 (0.01) 1.80 1.79
Class C 1999 11.79 (0.24) 4.72 4.48
1998(6) 10.00 (0.01) 1.80 1.79
Class X 1999 11.79 (0.25) 4.73 4.48
1998(6) 10.00 (0.01) 1.80 1.79
ASAF NEUBERGER BERMAN
MID-CAP VALUE FUND:
- --------------------------------
- --------------------------------
Class A 1999 $ 10.23 $ 0.03 $1.19 $1.22
1998(6) 10.00 0.02 0.21 0.23
Class B 1999 10.22 (0.05) 1.22 1.17
1998(6) 10.00 0.01 0.21 0.22
Class C 1999 10.22 (0.05) 1.22 1.17
1998(6) 10.00 -- 0.22 0.22
Class X 1999 10.22 (0.05) 1.20 1.15
1998(6) 10.00 0.01 0.21 0.22
<CAPTION>
Less Distributions
--------------------------------------
From Net In Excess of From Net
Investment Net Investment Realized
Income Income Gains
---------- -------------- --------
<S> <C> <C> <C>
ASAF MARSICO
CAPITAL GROWTH FUND:
- --------------------------------
- --------------------------------
Class A $-- $(0.01) $ --
-- -- --
Class B -- -- --
-- -- --
Class C -- -- --
-- -- --
Class X -- -- --
-- -- --
ASAF NEUBERGER BERMAN
MID-CAP GROWTH FUND:
- --------------------------------
- --------------------------------
Class A $-- $ -- $(0.15)
-- -- --
Class B -- -- (0.15)
-- -- --
Class C -- -- (0.15)
-- -- --
Class X -- -- (0.15)
-- -- --
ASAF NEUBERGER BERMAN
MID-CAP VALUE FUND:
- --------------------------------
- --------------------------------
Class A $-- $(0.03) $ --
-- -- --
Class B -- (0.01) --
-- -- --
Class C -- (0.01) --
-- -- --
Class X -- (0.01) --
-- -- --
</TABLE>
74
<PAGE> 78
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios of Expenses
Supplemental Data to Average Net Assets(3)
------------------------------------- --------------------------------------------
Net Asset Net Assets at Portfolio Net After Expense Before Expense
Total Value Total End of Period Turnover Operating Reimbursement Reimbursement
Distributions End of Period Return(2) (in 000s) Rate Expenses and Waiver(4) and Waiver(4)
------------- ------------- --------- ------------- --------- --------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.01) $14.58 44.18% $103,196 105% 1.75% 1.76% 2.03%
-- 10.13 1.20% 7,037 67% 1.75% 1.75% 2.84%
-- 14.51 43.52% 285,342 105% 2.25% 2.26% 2.53%
-- 10.12 1.10% 17,994 67% 2.25% 2.25% 3.29%
-- 14.49 43.32% 125,796 105% 2.25% 2.26% 2.53%
-- 10.11 1.10% 11,012 67% 2.25% 2.25% 3.44%
-- 14.48 43.47% 49,980 105% 2.25% 2.26% 2.53%
-- 10.11 1.10% 5,746 67% 2.25% 2.25% 3.22%
$(0.15) $16.22 38.83% $ 10,908 106% 1.75% 1.77% 2.65%
-- 11.81 18.00% 587 122% 1.75% 1.75% 5.66%
(0.15) 16.12 38.21% 22,399 106% 2.25% 2.27% 3.14%
-- 11.79 17.80% 991 122% 2.25% 2.25% 15.98%
(0.15) 16.12 38.09% 9,674 106% 2.25% 2.27% 3.17%
-- 11.79 17.90% 903 122% 2.25% 2.25% 20.25%
(0.15) 16.12 38.09% 6,428 106% 2.25% 2.27% 3.19%
-- 11.79 17.90% 509 122% 2.25% 2.25% 10.43%
$(0.03) $11.42 12.06% $ 8,561 126% 1.75% 1.85% 2.76%
-- 10.23 2.30% 717 3% 1.75% 1.75% 9.44%
(0.01) 11.38 11.57% 21,560 126% 2.25% 2.35% 3.29%
-- 10.22 2.20% 1,886 3% 2.25% 2.25% 9.10%
(0.01) 11.38 11.57% 7,731 126% 2.25% 2.35% 3.32%
-- 10.22 2.20% 997 3% 2.25% 2.25% 13.91%
(0.01) 11.36 11.38% 4,608 126% 2.25% 2.35% 3.35%
-- 10.22 2.20% 295 3% 2.25% 2.25% 12.90%
<CAPTION>
Ratio of Net Investment
Income (Loss) to
Average Net Assets(3)
-----------------------
<S> <C>
(0.69%)
0.72%
(1.20%)
0.25%
(1.19%)
0.24%
(1.18%)
0.20%
(1.17%)
(0.52%)
(1.68%)
(0.78%)
(1.68%)
(0.72%)
(1.69%)
(0.67%)
0.06%
0.87%
(0.44%)
0.47%
(0.45%)
0.26%
(0.46%)
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) Includes commissions received by American Skandia Marketing, Incorporated
under the Funds' Supplemental Distribution Plan, as described in Note 3 to
the Financial Statements.
(6) 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.
75
<PAGE> 79
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Per Share Data (For a Share Outstanding
throughout each period)
<TABLE>
<CAPTION>
Increase (Decrease) from
Investment Operations
-----------------------------------------
Net Asset Net
Year Value Investment Net Realized Total from
Ended Beginning Income & Unrealized Investment
October 31, of Period (Loss) Gain (Loss) Operations
----------- --------- ------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
ASAF T. ROWE PRICE INTERNATIONAL
EQUITY FUND:
- ---------------------------------
- ---------------------------------
Class A 1999 $ 9.39 $(0.01) $ 1.68 $ 1.67
1998 8.93 (0.02) 0.48 0.46
1997(1) 9.74 0.01 (0.82) (0.81)
Class B 1999 9.59 (0.08) 1.73 1.65
1998 9.16 (0.07) 0.50 0.43
1997(1) 10.00 (0.01) (0.83) (0.84)
Class C 1999 9.57 (0.08) 1.74 1.66
1998 9.16 (0.06) 0.47 0.41
1997(1) 10.00 (0.01) (0.83) (0.84)
Class X 1999 9.61 (0.09) 1.75 1.66
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 1999 $ 14.41 $(0.10) $ 7.66 $ 7.56
1998 11.40 (0.01) 3.05 3.04
1997(1) 11.18 0.09 0.13 0.22
Class B 1999 12.87 (0.17) 6.80 6.63
1998 10.19 (0.08) 2.77 2.69
1997(1) 10.00 0.06 0.13 0.19
Class C 1999 12.85 (0.18) 6.80 6.62
1998 10.19 (0.08) 2.75 2.67
1997(1) 10.00 0.05 0.14 0.19
Class X 1999 12.88 (0.18) 6.82 6.64
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 1999 $ 11.75 $ 0.22 $ 1.84 $ 2.06
1998 10.45 0.22 1.20 1.42
1997(1) 9.98 0.14 0.33 0.47
Class B 1999 11.77 0.14 1.87 2.01
1998 10.45 0.15 1.24 1.39
1997(1) 10.00 0.10 0.35 0.45
Class C 1999 11.77 0.14 1.86 2.00
1998 10.46 0.15 1.23 1.38
1997(1) 10.00 0.10 0.36 0.46
Class X 1999 11.76 0.13 1.88 2.01
1998 10.45 0.15 1.23 1.38
1997(1) 10.00 0.11 0.34 0.45
<CAPTION>
Less Distributions
----------------------------------------
In Excess
From Net of Net From Net
Investment Investment Realized
Income Income Gains
---------- ---------- --------------
<S> <C> <C> <C>
ASAF T. ROWE PRICE INTERNATIONAL
EQUITY FUND:
- ---------------------------------
- ---------------------------------
Class A $ -- $(0.07) $--
-- -- --
-- -- --
Class B -- (0.02) --
-- -- --
-- -- --
Class C -- (0.02) --
-- -- --
-- -- --
Class X -- (0.02) --
-- -- --
-- -- --
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 $(0.15) $ -- $--
(0.12) -- --
-- -- --
Class B (0.09) -- --
(0.07) -- --
-- -- --
Class C (0.09) -- --
(0.07) -- --
-- -- --
Class X (0.09) -- --
(0.07) -- --
-- -- --
</TABLE>
76
<PAGE> 80
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios of Expenses
Supplemental Data to Average Net Assets(4)
Net Asset ------------------------------------- -----------------------------------------------
Value Net Assets at Portfolio Net After Expense Before Expense
Total End Total End of Period Turnover Operating Reimbursement Reimbursement
Distributions of Period Return(2) (in 000s) Rate(3) Expenses and Waiver(5) and Waiver(5)
- ------------- ------------- --------- ------------- --------- --------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
$(0.07) $10.99 17.82% $ 4,623 31% 2.10% 2.12% 3.36%
-- 9.39 5.15% 1,685 20% 2.10% 2.10% 6.06%
-- 8.93 (8.32%) 218 1% 2.10% 2.10% 51.87%
(0.02) 11.22 17.30% 9,257 31% 2.60% 2.62% 3.86%
-- 9.59 4.69% 3,318 20% 2.60% 2.60% 6.50%
-- 9.16 (8.40%) 390 1% 2.60% 2.60% 38.12%
(0.02) 11.21 17.33% 4,379 31% 2.60% 2.62% 3.90%
-- 9.57 4.48% 2,282 20% 2.60% 2.60% 6.55%
-- 9.16 (8.40%) 198 1% 2.60% 2.60% 33.95%
(0.02) 11.25 17.26% 6,727 31% 2.60% 2.62% 3.94%
-- 9.61 4.68% 5,144 20% 2.60% 2.60% 6.54%
-- 9.18 (8.20%) 756 1% 2.60% 2.60% 46.77%
$ -- $21.97 52.46% $234,575 47% 1.70% 1.71% 2.00%
(0.03) 14.41 26.77% 24,558 77% 1.70% 1.70% 2.65%
-- 11.40 1.97% 706 83% 1.70% 1.70% 26.77%
-- 19.50 51.52% 684,778 47% 2.20% 2.21% 2.51%
(0.01) 12.87 26.40% 56,582 77% 2.20% 2.20% 3.14%
-- 10.19 1.90% 1,718 83% 2.20% 2.20% 16.45%
-- 19.47 51.52% 222,230 47% 2.20% 2.21% 2.50%
(0.01) 12.85 26.20% 21,710 77% 2.20% 2.20% 3.13%
-- 10.19 1.90% 452 83% 2.20% 2.20% 15.78%
-- 19.52 51.55% 133,655 47% 2.20% 2.21% 2.48%
(0.01) 12.88 26.37% 36,575 77% 2.20% 2.20% 3.16%
-- 10.20 2.00% 1,474 83% 2.20% 2.20% 24.39%
$(0.15) $13.66 17.60% $ 31,960 66% 1.55% 1.59% 1.91%
(0.12) 11.75 13.64% 8,911 70% 1.55% 1.55% 2.86%
-- 10.45 4.71% 471 46% 1.55% 1.55% 29.14%
(0.09) 13.69 17.08% 79,962 66% 2.05% 2.09% 2.42%
(0.07) 11.77 13.30% 18,045 70% 2.05% 2.05% 3.38%
-- 10.45 4.50% 1,408 46% 2.05% 2.05% 19.54%
(0.09) 13.68 17.08% 34,157 66% 2.05% 2.09% 2.41%
(0.07) 11.77 13.19% 8,362 70% 2.05% 2.05% 3.33%
-- 10.46 4.60% 255 46% 2.05% 2.05% 20.89%
(0.09) 13.68 17.09% 33,884 66% 2.05% 2.09% 2.42%
(0.07) 11.76 13.21% 18,296 70% 2.05% 2.05% 3.35%
-- 10.45 4.50% 1,174 46% 2.05% 2.05% 36.25%
</TABLE>
Ratio of Net Investment
Income (Loss) to
Average Net Assets(4)
-----------------------
(0.28%)
(0.16%)
0.07%
(0.80%)
(0.70%)
(0.51%)
(0.83%)
(0.58%)
(0.53%)
(0.86%)
(0.68%)
(0.28%)
(0.49%)
(0.24%)
2.72%
(0.98%)
(0.74%)
2.27%
(0.99%)
(0.75%)
1.95%
(1.02%)
(0.76%)
2.05%
1.52%
1.72%
4.81%
1.02%
1.27%
3.68%
1.02%
1.27%
3.82%
0.99%
1.27%
4.05%
(1) Calculated from July 28, 1997 (Date of initial shares sold subsequent to
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) Represents Portfolio Turnover Rate in corresponding Master Portfolios.
(4) Annualized for periods less than one year and represents the combined ratios
for the respective fund and its respective pro rata share of its Master
Portfolio.
(5) Includes commissions received by American Skandia Marketing, Incorporated
under the Funds' Supplemental Distribution Plan, as described in Note 3 to
the Financial Statements.
Per share data has been calculated based on the average daily number of shares
outstanding throughout the period.
See Notes to Financial Statements.
77
<PAGE> 81
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 TOTAL
RETURN BOND FUND:
- ------------------------------
- ------------------------------
Class A 1999 $ 10.79 $ 0.60 $(0.61) $(0.01)
1998 10.28 0.35 0.54 0.89
1997(1) 10.07 0.15 0.09 0.24
Class B 1999 10.68 0.54 (0.60) (0.06)
1998 10.16 0.31 0.53 0.84
1997(1) 10.00 0.10 0.09 0.19
Class C 1999 10.67 0.54 (0.59) (0.05)
1998 10.16 0.31 0.52 0.83
1997(1) 10.00 0.10 0.09 0.19
Class X 1999 10.69 0.54 (0.60) (0.06)
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 1999 $ 1.00 $0.035 $ -- $0.035
1998 1.00 0.039 -- 0.039
1997(1) 1.00 0.009 -- 0.009
Class B 1999 1.00 0.030 -- 0.030
1998 1.00 0.033 -- 0.033
1997(1) 1.00 0.007 -- 0.007
Class C 1999 1.00 0.030 -- 0.030
1998 1.00 0.034 -- 0.034
1997(1) 1.00 0.007 -- 0.007
Class X 1999 1.00 0.030 -- 0.030
1998 1.00 0.034 -- 0.034
1997(1) 1.00 0.008 -- 0.008
<CAPTION>
Less Distributions
--------------------------------------
From Net In Excess of From Net
Investment Net Investment Realized
Income Income Gains
---------- -------------- --------
<S> <C> <C> <C>
ASAF TOTAL
RETURN BOND FUND:
- ------------------------------
- ------------------------------
Class A $ (0.60) $-- $(0.07)
(0.38) -- --
(0.03) -- --
Class B (0.54) -- (0.07)
(0.32) -- --
(0.03) -- --
Class C (0.54) -- (0.07)
(0.32) -- --
(0.03) -- --
Class X (0.54) -- (0.07)
(0.32) -- --
(0.02) -- --
ASAF JPM
MONEY MARKET FUND:
- ------------------------------
- ------------------------------
Class A $(0.035) $-- $ --
(0.039) -- --
(0.009) -- --
Class B (0.030) -- --
(0.033) -- --
(0.007) -- --
Class C (0.030) -- --
(0.034) -- --
(0.007) -- --
Class X (0.030) -- --
(0.034) -- --
(0.008) -- --
</TABLE>
78
<PAGE> 82
AMERICAN SKANDIA ADVISOR FUNDS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratios of Expenses
Supplemental Data to Average Net Assets(5)
------------------------------------- --------------------------------------------
Net Asset Net Assets at Portfolio Net After Expense Before Expense
Total Value Total End of Period Turnover Operating Reimbursement Reimbursement
Distributions End of Period Return(2) (In 000s) Rate(3) Expenses and Waiver(4) and Waiver(4)
- ------------- ------------- --------- ------------- --------- --------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (0.67) $10.11 (0.55%) $23,140 145% 1.40% 1.40% 1.73%
(0.38) 10.79 8.79% 6,034 418% 1.40% 1.40% 2.93%
(0.03) 10.28 2.39% 61 93% 1.40% 1.40% 66.92%
(0.61) 10.01 (1.02%) 83,936 145% 1.90% 1.90% 2.23%
(0.32) 10.68 8.36% 17,821 418% 1.90% 1.90% 3.58%
(0.03) 10.16 1.90% 547 93% 1.90% 1.90% 39.35%
(0.61) 10.01 (0.92%) 26,112 145% 1.90% 1.90% 2.24%
(0.32) 10.67 8.26% 8,743 418% 1.90% 1.90% 3.52%
(0.03) 10.16 1.93% 165 93% 1.90% 1.90% 33.68%
(0.61) 10.02 (1.00%) 19,574 145% 1.90% 1.90% 2.25%
(0.32) 10.69 8.36% 11,698 418% 1.90% 1.90% 3.68%
(0.02) 10.17 1.94% 410 93% 1.90% 1.90% 67.46%
$(0.035) $ 1.00 3.57% $43,004 N/A 1.50% 1.50% 1.63%
(0.039) 1.00 3.94% 7,372 N/A 1.50% 1.50% 2.42%
(0.009) 1.00 0.92% 307 N/A 1.50% 1.50% 31.53%
(0.030) 1.00 3.05% 79,202 N/A 2.00% 2.00% 2.12%
(0.033) 1.00 3.39% 16,554 N/A 2.00% 2.00% 2.89%
(0.007) 1.00 0.75% 354 N/A 2.00% 2.00% 37.83%
(0.030) 1.00 3.06% 28,923 N/A 2.00% 2.00% 2.13%
(0.034) 1.00 3.42% 6,895 N/A 2.00% 2.00% 3.07%
(0.007) 1.00 0.71% 332 N/A 2.00% 2.00% 24.34%
(0.030) 1.00 3.06% 28,385 N/A 2.00% 2.00% 2.13%
(0.034) 1.00 3.42% 12,533 N/A 2.00% 2.00% 3.18%
(0.008) 1.00 0.77% 566 N/A 2.00% 2.00% 39.71%
</TABLE>
Ratio of Net Investment
Income (Loss) to
Average Net Assets(5)
- ------------------------
5.33%
4.76%
4.42%
4.82%
4.23%
4.13%
4.84%
4.27%
4.32%
4.86%
4.25%
3.94%
3.56%
3.90%
3.34%
3.04%
3.30%
2.98%
3.07%
3.40%
2.85%
3.06%
3.42%
2.97%
(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) Represents Portfolio Turnover Rate in corresponding Master Portfolios.
(4) Includes commissions received by American Skandia Marketing, Incorporated
under the Funds' Supplemental Distribution Plan, as described in Note 3 to
the Financial Statements.
(5) Annualized for periods less than one year and 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.
79
<PAGE> 83
OCTOBER 31, 1999
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, 1999,
consisted of 16 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, 1999, the Feeder Funds held the following percentage interests in
their corresponding Portfolios.
<TABLE>
<S> <C>
ASMT T. Rowe Price International Equity Portfolio 68.3%
ASMT Janus Capital Growth Portfolio 96.4%
ASMT INVESCO Equity Income Portfolio 84.9%
ASMT PIMCO Total Return Bond Portfolio 87.2%
ASMT JPM Money Market Portfolio 94.0%
</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 11 Funds of the Company -- ASAF Founders International Small
Capitalization Fund ("International Small Cap"), ASAF Janus Small-Cap Growth
Fund ("Small-Cap Growth") (formerly, ASAF Founders Small Capitalization Fund),
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 Oppenheimer Large-Cap Growth Fund
("Large-Cap Growth") (formerly, ASAF Robertson Stephens Value + Growth Fund),
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.
80
<PAGE> 84
AMERICAN SKANDIA ADVISOR FUNDS, INC.
SECURITY VALUATION
FEEDER FUNDS -- The value of each Feeder Fund's beneficial interest in the
Portfolio in which it invests is determined by the Feeder 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 generally 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, 1999, 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.
81
<PAGE> 85
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 margin deposit, in cash or cash equivalents, equal
to a certain percentage of the contract amount. Subsequent payments (variation
margin) 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 is 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-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 Fund
may be delayed or prevented from exercising its right to dispose of the
securities.
SECURITIES LOANS
NON-FEEDER FUNDS -- Each Fund may lend securities for the purpose of realizing
additional income. All securities loans are collateralized by cash or securities
issued or guaranteed by the U.S. Government or its agencies. The value of the
collateral is at least equal to the market value of the securities lent.
However, due to market fluctuations, the value of the securities lent may exceed
the value of the collateral. On the next business day the collateral is adjusted
based on the prior day's market fluctuations and the current day's lending
activity.
Interest income from lending activity is determined by the amount of
interest earned on collateral, less any amounts payable to the borrowers of the
securities and the lending agent.
Lending securities involves certain risks, including the risk that the Fund
may be delayed or prevented from recovering the collateral if the borrower fails
to return the securities.
82
<PAGE> 86
AMERICAN SKANDIA ADVISOR FUNDS, INC.
At October 31, 1999, securities lending activities are summarized as
follows:
<TABLE>
<CAPTION>
MARKET
VALUE OF
SECURITIES MARKET VALUE INCOME FROM
PORTFOLIO ON LOAN OF COLLATERAL LENDING*
- --------- ------------ ------------- -----------
<S> <C> <C> <C>
Small-Cap Growth $ 43,283,597 $ 56,763,136 $22,345
Small Company Value 306,000 306,000 636
Strategic Balanced 5,780,557 5,569,999 163
High Yield Bond 3,306,625 3,617,250 811
Large-Cap Growth 9,924,024 9,831,788 468
Growth and Income 17,942,972 17,938,097 534
Marsico Capital Growth 147,253,452 142,103,987 12,133
Mid-Cap Growth 18,212,356 17,874,935 3,536
Mid-Cap Value 3,148,144 3,132,300 177
</TABLE>
* Income earned, for the period, is included in interest income on the
Statements of Operations.
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 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 Growth, Small
Company Value, Large-Cap 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
83
<PAGE> 87
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; T. Rowe
Price Associates, Inc. for Small Company Value; American Century Investment
Management, Inc. for Strategic Balanced; Federated Investment Counseling for
High Yield Bond; OppenheimerFunds, Inc. for Large-Cap Growth; Lord Abbett & Co.
for Growth and Income; Janus Capital Corporation for Small-Cap Growth and
Overseas Growth; Marsico Capital Management, LLC for Marsico Capital Growth; and
Neuberger Berman Management Inc. 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%, .90%,
1.00%, 1.10%, 1.00%, .90%, and .90% of the average daily net assets of the
International Small Cap, Small-Cap Growth, Small Company Value, Strategic
Balanced, High Yield Bond, Large-Cap Growth, Growth and Income, Overseas Growth,
Marisco 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 fee for Large-Cap Growth is reduced to
.85% of the average daily net assets in excess of $1 billion. The Investment
Manager is currently waiving a portion of its fee equal to .20% and .10% of the
average daily net assets of the Growth and Income and Overseas Growth Funds,
respectively.
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%,
.35%, .50%, .60%, .45%, .40%, and .40% of the average daily net assets of the
International Small Cap, Small-Cap Growth, Small Company Value, Strategic
Balanced, High Yield Bond, Large-Cap Growth, Growth and Income, Overseas Growth,
Marsico Capital Growth, Mid-Cap Growth, and Mid-Cap Value Funds, respectively.
The Sub-advisors for 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
Growth, Strategic Balanced, High Yield Bond, Large-Cap Growth, Growth and
Income, and Overseas Growth are reduced for Fund net assets in excess of
specified levels.
NEW ADVISORY AND SUB-ADVISORY AGREEMENTS
NON-FEEDER FUNDS -- On December 16, 1998, the Board of Directors of the Company
approved changes in Sub-advisor for ASAF Robertson Stephens Value + Growth Fund
("Value + Growth") and ASAF Founders Small Capitalization Fund ("Small Cap"),
effective December 31, 1998 and January 1, 1999, respectively. On February 25,
1999, the shareholders of Value + Growth and Small Cap further approved new
Sub-advisory Agreements, effective March 1, 1999.
OppenheimerFunds, Inc. became Sub-advisor to Value + Growth and the name of
the Fund was changed to ASAF Oppenheimer Large-Cap Growth Fund. Prior to
December 31, 1998, Robertson
84
<PAGE> 88
AMERICAN SKANDIA ADVISOR FUNDS, INC.
Stephens & Company Investment Management, L.P. served as Sub-advisor to the
Fund. Prior to March 1, 1999, the Investment Manager received a fee, computed
daily and paid monthly, based on an annual rate of 1.10% of the average daily
net assets of the Fund. The Investment Manager voluntarily waived a portion of
its fee equal to .10% of average daily net assets. The Investment Manager paid
the Sub-advisor a fee, computed daily and paid monthly, based on an annual rate
of .60% of the average daily net assets of the Fund. The Sub-advisor voluntarily
waived a portion of its fee equal to .10% of average daily net assets. The
annual rate of the fees paid by the Investment Manager to the Sub-advisor was
reduced for Fund net assets in excess of specified levels.
Janus Capital Corporation became Sub-advisor to Small Cap and the name of
the Fund was changed to ASAF Janus Small-Cap Growth Fund. Prior to January 1,
1999, Founders Asset Management, Inc. served as Sub-advisor to the Fund. Prior
to March 1, 1999, the Investment Manager paid the Fund's Sub-advisor a fee,
computed daily and paid monthly, based on an annual rate of .50% of the average
daily net assets of the Fund. The annual rate of the fees paid by the Investment
Manager to the Sub-advisor was 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 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 Growth, Small Company Value, Strategic
Balanced, High Yield Bond, Large-Cap 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, 1999, ASMI retained no portion of the sales charge on
sales of Class A shares of the Funds.
85
<PAGE> 89
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 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 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. ASMI also uses distribution and service fees
as reimbursement for its purchase of Bonus Shares. Bonus shares are paid to
shareholders at the time of the initial purchase and each subsequent purchase of
Class X shares in an amount equal to 2.5% of the purchase.
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.
In addition, the Company has adopted a Supplemental Distribution Plan
("Supplemental Plan") under Rule 12b-1. The Supplemental Plan permits ASMI to
receive brokerage commissions in connection with purchases and sales of
securities by the Funds, and to use these commissions to promote the sale of
shares of the Company. Under the Supplemental Plan, securities transactions for
a Fund may be directed to certain brokers for execution ("clearing brokers") who
have agreed to pay part of the brokerage commissions received on these
transactions to ASMI for "introducing" transactions to the clearing broker. In
turn, ASMI uses the brokerage commissions received as an introducing broker to
pay various distribution-related expenses, such as advertising, printing of
sales materials, and payments to dealers.
Commissions received by ASMI under the Supplemental Plan are reflected in
the cost of securities purchased and the proceeds from the sale of securities.
These commissions are shown in the Statements of Operations as "Supplemental
Distribution Fees" and a corresponding reduction "Fees Paid Indirectly". Net
expenses of the Funds are unaffected by these commissions. From July 27, 1999 to
October 31, 1999, commissions received by ASMI totaled $217,539, of which
$101,137 and $116,402 were received from the Non-Feeder Funds and the Portfolios
of American Skandia Master Trust, respectively.
86
<PAGE> 90
AMERICAN SKANDIA ADVISOR FUNDS, INC.
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,
during the year ended October 31, 1999, 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 131,573 $ 1,625,013 519,007 $ 6,481,186 191,446 $ 2,192,239 159,967
Redeemed (42,759) (499,629) (80,020) (954,057) (87,643) (936,217) (74,837)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 88,814 $ 1,125,384 438,987 $ 5,527,129 103,803 $ 1,256,022 85,130
============ ============= =========== ============ =========== ============ ===========
SMALL-CAP GROWTH:
Sold 4,521,498 $ 62,279,844 6,131,106 $ 82,109,946 2,453,044 $ 32,502,450 1,388,410
Redeemed (1,555,645) (21,272,349) (589,414) (7,913,337) (415,557) (5,293,724) (400,722)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 2,965,853 $ 41,007,495 5,541,692 $ 74,196,609 2,037,487 $ 27,208,726 987,688
============ ============= =========== ============ =========== ============ ===========
SMALL COMPANY VALUE:
Sold 2,152,263 $ 19,728,209 2,202,266 $ 19,780,241 1,278,728 $ 11,579,459 899,829
Reinvested 2,950 27,202 -- -- -- -- --
Redeemed (1,740,590) (16,175,699) (998,544) (8,851,216) (731,195) (6,613,615) (727,801)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 414,623 $ 3,579,712 1,203,722 $ 10,929,025 547,533 $ 4,965,844 172,028
============ ============= =========== ============ =========== ============ ===========
STRATEGIC BALANCED:
Sold 1,815,075 $ 22,578,144 4,889,067 $ 60,790,616 1,513,809 $ 18,669,567 1,064,235
Reinvested 8,478 106,949 10,128 127,960 4,003 50,510 4,619
Redeemed (229,284) (2,869,225) (512,249) (6,347,305) (189,856) (2,369,264) (224,538)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 1,594,269 $ 19,815,868 4,386,946 $ 54,571,271 1,327,956 $ 16,350,813 844,316
============ ============= =========== ============ =========== ============ ===========
HIGH YIELD BOND:
Sold 3,357,420 $ 32,790,500 7,275,129 $ 70,565,721 1,847,050 $ 17,923,216 1,855,501
Reinvested 87,677 841,629 232,789 2,227,094 79,920 767,588 122,941
Redeemed (2,428,133) (23,736,985) (2,228,915) (21,481,204) (1,091,741) (10,529,290) (1,121,235)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 1,016,964 $ 9,895,144 5,279,003 $ 51,311,611 835,229 $ 8,161,514 857,207
============ ============= =========== ============ =========== ============ ===========
LARGE-CAP GROWTH:
Sold 638,225 $ 8,103,545 1,851,812 $ 23,314,526 418,749 $ 5,236,468 637,307
Redeemed (215,891) (2,716,616) (410,694) (5,186,475) (126,506) (1,592,157) (320,143)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 422,334 $ 5,386,929 1,441,118 $ 18,128,051 292,243 $ 3,644,311 317,164
============ ============= =========== ============ =========== ============ ===========
GROWTH AND INCOME:
Sold 2,372,960 $ 28,578,838 4,969,282 $ 60,277,008 1,774,560 $ 21,393,909 1,298,681
Reinvested 3,892 47,183 633 7,193 299 3,391 571
Redeemed (625,028) (7,479,489) (629,845) (7,571,053) (366,786) (4,442,443) (397,677)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 1,751,824 $ 21,146,532 4,340,070 $ 52,713,148 1,408,073 $ 16,954,857 901,575
============ ============= =========== ============ =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
------------
<S> <C>
INTERNATIONAL SMALL
CAP:
Sold $ 2,003,516
Redeemed (1,007,684)
------------
Net Increase $ 995,832
============
SMALL-CAP GROWTH:
Sold $ 17,986,369
Redeemed (5,025,846)
------------
Net Increase $ 12,960,523
============
SMALL COMPANY VALUE:
Sold $ 8,082,697
Reinvested --
Redeemed (6,480,805)
------------
Net Increase $ 1,601,892
============
STRATEGIC BALANCED:
Sold $ 13,076,631
Reinvested 57,949
Redeemed (2,768,534)
------------
Net Increase $ 10,366,046
============
HIGH YIELD BOND:
Sold $ 18,027,252
Reinvested 1,182,704
Redeemed (10,858,678)
------------
Net Increase $ 8,351,278
============
LARGE-CAP GROWTH:
Sold $ 7,894,652
Redeemed (3,950,285)
------------
Net Increase $ 3,944,367
============
GROWTH AND INCOME:
Sold $ 15,523,163
Reinvested 6,430
Redeemed (4,736,458)
------------
Net Increase $ 10,793,135
============
</TABLE>
87
<PAGE> 91
<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>
OVERSEAS GROWTH:
Sold 5,875,239 $ 72,910,399 6,847,241 $ 83,827,854 3,845,340 $ 46,929,956 1,792,053
Redeemed (2,366,221) (29,831,109) (703,924) (8,772,633) (879,415) (10,959,877) (419,635)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 3,509,018 $ 43,079,290 6,143,317 $ 75,055,221 2,965,925 $ 35,970,079 1,372,418
============ ============= =========== ============ =========== ============ ===========
MARSICO CAPITAL
GROWTH:
Sold 7,854,783 $ 101,851,952 19,502,450 $253,703,042 8,427,772 $108,624,094 3,463,385
Reinvested 1,125 13,337 -- -- -- -- --
Redeemed (1,472,317) (19,722,964) (1,617,686) (21,694,601) (835,906) (11,098,692) (581,156)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 6,383,591 $ 82,142,325 17,884,764 $232,008,441 7,591,866 $ 97,525,402 2,882,229
============ ============= =========== ============ =========== ============ ===========
MID-CAP GROWTH:
Sold 876,248 $ 12,737,534 1,648,044 $ 23,798,375 681,405 $ 9,773,936 455,953
Reinvested 1,117 16,244 2,164 31,032 1,571 22,824 1,145
Redeemed (254,503) (3,676,648) (344,773) (5,076,953) (159,471) (2,340,370) (101,469)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 622,862 $ 9,077,130 1,305,435 $ 18,752,454 523,505 $ 7,456,390 355,629
============ ============= =========== ============ =========== ============ ===========
MID-CAP VALUE:
Sold 893,170 $ 10,487,415 1,971,205 $ 23,270,387 719,632 $ 8,511,354 457,970
Reinvested 311 3,371 385 4,172 171 1,858 99
Redeemed (214,164) (2,487,388) (262,235) (3,044,027) (138,303) (1,625,892) (81,385)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 679,317 $ 8,003,398 1,709,355 $ 20,230,532 581,500 $ 6,887,320 376,684
============ ============= =========== ============ =========== ============ ===========
INTERNATIONAL EQUITY:
Sold 580,067 $ 5,981,540 664,660 $ 6,995,897 534,152 $ 5,615,638 302,217
Reinvested 1,335 13,416 617 6,351 424 4,358 957
Redeemed (340,252) (3,535,835) (186,621) (1,979,171) (382,168) (4,024,965) (240,600)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 241,150 $ 2,459,121 478,656 $ 5,023,077 152,408 $ 1,595,031 62,574
============ ============= =========== ============ =========== ============ ===========
JANUS
CAPITAL GROWTH:
Sold 11,152,498 $ 222,428,056 34,148,101 $606,063,473 11,402,214 $201,850,746 5,298,045
Redeemed (2,178,199) (43,528,627) (3,428,551) (61,160,249) (1,675,387) (29,604,961) (1,291,629)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 8,974,299 $ 178,899,429 30,719,550 $544,903,224 9,726,827 $172,245,785 4,006,416
============ ============= =========== ============ =========== ============ ===========
EQUITY INCOME:
Sold 2,536,827 $ 33,506,551 5,068,587 $ 66,599,293 2,104,000 $ 27,723,451 1,345,013
Reinvested 15,267 203,306 18,552 248,016 8,801 117,852 12,841
Redeemed (970,970) (12,988,032) (779,404) (10,139,354) (327,011) (4,264,826) (435,651)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 1,581,124 $ 20,721,825 4,307,735 $ 56,707,955 1,785,790 $ 23,576,477 922,203
============ ============= =========== ============ =========== ============ ===========
TOTAL RETURN BOND:
Sold 2,801,868 $ 29,031,058 9,085,766 $ 93,370,295 2,715,698 $ 27,941,412 1,476,934
Reinvested 62,591 645,265 190,650 1,946,935 75,148 768,265 79,406
Redeemed (1,135,022) (11,679,664) (2,559,842) (26,261,168) (1,000,668) (10,260,166) (696,973)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 1,729,437 $ 17,996,659 6,716,574 $ 69,056,062 1,790,178 $ 18,449,511 859,367
============ ============= =========== ============ =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
============
<S> <C>
OVERSEAS GROWTH:
Sold $ 21,928,837
Redeemed (5,530,598)
------------
Net Increase $ 16,398,239
============
MARSICO CAPITAL
GROWTH:
Sold $ 44,011,902
Reinvested --
Redeemed (7,591,419)
------------
Net Increase $ 36,420,483
============
MID-CAP GROWTH:
Sold $ 6,580,126
Reinvested 16,499
Redeemed (1,521,388)
------------
Net Increase $ 5,075,237
============
MID-CAP VALUE:
Sold $ 5,399,847
Reinvested 1,070
Redeemed (1,009,095)
------------
Net Increase $ 4,391,822
============
INTERNATIONAL EQUITY:
Sold $ 3,142,322
Reinvested 9,894
Redeemed (2,530,886)
------------
Net Increase $ 621,330
============
JANUS
CAPITAL GROWTH:
Sold $ 92,328,700
Redeemed (22,876,970)
------------
Net Increase $ 69,451,730
============
EQUITY INCOME:
Sold $ 17,492,175
Reinvested 169,817
Redeemed (5,669,805)
------------
Net Increase $ 11,992,187
============
TOTAL RETURN BOND:
Sold $ 15,232,870
Reinvested 816,063
Redeemed (7,125,361)
------------
Net Increase $ 8,923,572
============
</TABLE>
88
<PAGE> 92
AMERICAN SKANDIA ADVISOR FUNDS, INC.
<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>
MONEY MARKET:
Sold 165,732,217 $ 165,732,220 160,855,656 $160,855,657 91,366,940 $ 91,366,940 72,496,475
Reinvested 729,338 729,338 1,043,507 1,043,507 448,412 448,412 507,926
Redeemed (130,829,982) (130,829,982) (99,250,785) (99,250,785) (69,788,348) (69,788,348) (57,154,179)
------------ ------------- ----------- ------------ ----------- ------------ -----------
Net Increase 35,631,573 $ 35,631,576 62,648,378 $ 62,648,379 22,027,004 $ 22,027,004 15,850,222
============ ============= =========== ============ =========== ============ ===========
<CAPTION>
CLASS X
------------
AMOUNT
============
<S> <C>
MONEY MARKET:
Sold $ 72,496,475
Reinvested 507,926
Redeemed (57,154,179)
------------
Net Increase $ 15,850,222
============
</TABLE>
Transactions in shares of capital stock, during the 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 GROWTH:
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
=========== ============ ========== =========== =========== ============ ===========
SMALL COMPANY VALUE:
Sold 1,021,252 $ 10,026,934 1,688,655 $16,836,032 1,025,988 $ 10,042,683 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
=========== ============ ========== =========== =========== ============ ===========
LARGE-CAP 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
=========== ============ ========== =========== =========== ============ ===========
<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 GROWTH:
Sold $ 4,680,015
Redeemed (495,331)
------------
Net Increase $ 4,184,684
============
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
============
LARGE-CAP 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
============
</TABLE>
89
<PAGE> 93
<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>
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
=========== ============ ========== =========== =========== ============ ===========
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>
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
============
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>
90
<PAGE> 94
AMERICAN SKANDIA ADVISOR FUNDS, INC.
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 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, 1999, 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 2007
======= ========== ===========
<S> <C> <C> <C>
High Yield Bond $ 4,183 $ 17,619 $ 327,379
Growth and Income -- 1,122,945 1,772,304
Overseas Growth -- 2,242,636 3,428,829
Marsico Capital Growth -- 682,762 7,950,369
Mid-Cap Growth -- -- 1,874,798
International Equity -- 73,332 49,869
Janus Capital Growth 38,807 4,789,881 52,015,103
Total Return Bond -- -- 1,499,612
</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, 1999, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
============ ============
<S> <C> <C>
International Small Cap $ 29,939,539 $ 21,376,647
Small-Cap Growth 168,638,754 41,509,488
Small Company Value 39,757,090 18,366,302
Strategic Balanced 128,351,046 55,500,791
High Yield Bond 89,195,486 15,357,347
Large-Cap Growth 134,132,396 114,218,960
Growth and Income 134,445,365 35,954,271
Overseas Growth 231,282,231 80,299,614
Marsico Capital Growth 685,996,090 267,024,550
Mid-Cap Growth 62,551,030 24,483,643
Mid-Cap Value 59,731,672 23,911,469
</TABLE>
Purchases and sales of U.S. government securities, during the year ended
October 31, 1999, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
=========== ===========
<S> <C> <C>
Strategic Balanced $32,569,998 $12,048,962
</TABLE>
91
<PAGE> 95
At October 31, 1999, 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 $ 16,207,546 $ 1,542,356 $ 563,237 $ 979,119
Small-Cap Growth 169,196,638 52,762,621 6,633,267 46,129,354
Small Company Value 70,986,163 2,643,592 10,389,565 (7,745,973)
Strategic Balanced 123,003,473 8,522,144 2,826,201 5,695,943
High Yield Bond 123,782,886 832,530 9,476,302 (8,643,772)
Large-Cap Growth 49,123,265 7,147,199 1,528,151 5,619,048
Growth and Income 135,050,750 18,023,780 5,844,339 10,179,441
Overseas Growth 211,181,909 49,143,232 2,208,056 46,935,176
Marsico Capital
Growth 493,793,058 93,832,258 6,370,958 87,461,300
Mid-Cap Growth 40,826,818 9,763,330 1,113,313 8,650,017
Mid-Cap Value 43,169,912 1,873,059 3,611,535 (1,738,476)
</TABLE>
7. WRITTEN OPTIONS TRANSACTIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Written options transactions, during the year ended October 31, 1999, were
as follows:
<TABLE>
<CAPTION>
MARSICO CAPITAL GROWTH
-----------------------
NUMBER OF
CONTRACTS PREMIUM
========= ==========
<S> <C> <C>
Balance at beginning of period -- $ --
Written 408 579,700
Expired -- --
Exercised -- --
Closed (408) (579,700)
---- ----------
Balance at end of period -- $ --
==== ==========
</TABLE>
92
<PAGE> 96
AMERICAN SKANDIA ADVISOR FUNDS, INC.
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 Janus Small-Cap Growth Fund, ASAF T. Rowe Price Small
Company Value Fund, ASAF American Century Strategic Balanced Fund, ASAF
Federated High Yield Bond Fund, ASAF Oppenheimer Large-Cap 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, 1999, the results of their
operations for the year then ended, the changes in their net assets for each of
the two years (or periods) in the period then ended and the financial highlights
for each of the periods presented, in conformity with accounting principles
generally accepted in the United States. 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 auditing standards
generally accepted in the United States, 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, 1999 by correspondence with the custodians and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 15, 1999
93
<PAGE> 97
[This page intentionally left blank]
94
<PAGE> 98
AMERICAN SKANDIA MASTER TRUST
SCHEDULES OF INVESTMENTS
OCTOBER 31, 1999
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
95
<PAGE> 99
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
FOREIGN STOCK -- 93.8%
ARGENTINA -- 0.2%
Banco de Galicia y
Buenos Aires SA de CV
[ADR] 1,223 $ 25,836
Banco Frances SA [ADR] 360 7,875
Telefonica de Argentina
SA Cl-B [ADR] 1,840 47,150
-----------
80,861
-----------
AUSTRALIA -- 2.2%
Brambles Industries Ltd. 3,000 84,307
Broken Hill Proprietary
Co. Ltd. 4,062 41,952
Colonial Ltd. 20,237 74,409
Commonwealth Bank of
Australia 7,111 116,458
Lend Lease Corp. Ltd. 3,000 34,493
News Corp. Ltd. 10,012 72,350
News Corp. Ltd. Pfd. 8,026 54,301
Publishing &
Broadcasting Ltd. 13,000 77,043
TABCORP Holdings Ltd. 7,000 44,339
Telstra Corp.* 5,000 16,027
Telstra Corp. Ltd. 21,000 106,749
Westpac Banking Corp.
Ltd. 14,173 90,876
-----------
813,304
-----------
BELGIUM -- 1.2%
Dexia Belgium (Credit
Communal) 270 39,531
Fortis Cl-B 4,860 163,970
KBC Bancassurance
Holdings NV 3,680 189,525
Societe Europeene des
Satellites [FDR]* 199 24,838
UCB SA 510 19,002
-----------
436,866
-----------
BRAZIL -- 1.3%
Companhia Brasileira de
Distribuicoa Grupo Pao
de Acucar [GDR] 2,272 49,700
Companhia Energetica de
Minas Geras [ADR] 1,223 17,480
Telecomunicacoes
Brasileiras SA [ADR] 2,749 86
Telecomunicacoes
Brasileiras SA Pfd.
[ADR] 4,956 385,948
Uniao de Bancos
Brasileiros SA [GDR] 1,000 23,125
-----------
476,339
-----------
CANADA -- 0.3%
Alcan Aluminium Ltd. 1,220 40,020
Nortel Networks Corp.* 640 39,399
Royal Bank of Canada 570 24,588
-----------
104,007
-----------
CHILE -- 0.0%
Chilectra SA [ADR] 144A 464 8,251
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
CHINA -- 0.1%
Huaneng Power
International, Inc.
[ADR]* 3,000 $ 36,375
-----------
DENMARK -- 0.3%
Den Danske Bank 410 46,670
Tele Danmark AS 840 51,203
Unidanmark AS Cl-A 260 20,221
-----------
118,094
-----------
FINLAND -- 1.6%
Nokia AB Oyj 5,080 580,973
-----------
FRANCE -- 11.3%
Alcatel 1,150 179,493
AXA SA 2,180 307,262
Banco Frances SA [ADR] 620 13,563
Banque National de
Paris* 2,210 193,955
Cap Gemini SA* 700 105,946
Carrefour Supermarche SA 2,330 431,014
Compagnie de Saint-
Gobain 690 119,662
Credit Commercial de
France 350 40,281
Groupe Danone 90 22,939
Hermes International
Designs* 710 77,609
L'Oreal 110 73,358
Lafarge SA 460 44,239
Legrand SA 570 136,295
Pinault-Printemps
Redoute SA 710 135,294
Sanofi SA* 5,650 249,117
Schneider SA 3,030 208,597
Societe Generale 650 141,419
Societe Television
Francaise 770 241,174
Sodexho Alliance SA 1,348 221,023
STMicroelectronics NV* 2,680 235,204
Total Fina SA Cl-B 3,931 530,888
Vivendi 5,420 410,446
-----------
4,118,778
-----------
GERMANY -- 6.2%
Allianz AG 560 170,690
Bayer AG 2,910 118,978
Bayerische Hypo-Und
Vereinsbank AG 4,390 286,075
Celanese AG* 89 1,389
Deutsche Bank AG 2,868 204,287
Deutsche Telekom AG 3,300 152,092
Dresdner Bank AG 3,560 182,597
Fielmann AG Pfd. 250 9,617
Fresenius AG Pfd. 110 18,036
Gehe AG 4,440 157,266
Hoechst AG 890 38,961
Mannesmann AG 2,680 413,226
Rhoen-Klinikum AG 1,380 53,667
SAP AG 390 141,419
</TABLE>
96
<PAGE> 100
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SAP AG Pfd. 230 $ 99,162
Siemens AG 860 76,832
Veba AG 2,750 149,953
-----------
2,274,247
-----------
HONG KONG -- 2.7%
Cheung Kong Holdings
Ltd. 10,000 90,739
China Light & Power Co.
Ltd. 16,000 73,312
China Telecom Ltd.* 68,000 232,808
Dao Heng Bank Group Ltd. 6,000 27,569
Hederson Land
Development Co. Ltd. 13,000 59,231
Hong Kong
Telecommunications
Ltd. 28,800 65,796
HSBC Holdings PLC 10,400 124,821
Hutchison Whampoa Ltd. 22,000 220,863
Pacific Century
Cyberworks Ltd.* 40,000 30,118
Sun Hung Kai Properties
Ltd. 7,000 56,535
-----------
981,792
-----------
INDIA -- 0.2%
ICICI Ltd.* 4,469 49,159
Mahanagar Telephone
Nigam Ltd. [GDR] 2,000 16,500
-----------
65,659
-----------
IRELAND -- 0.1%
CBT Group PLC [ADR]* 2,031 41,889
-----------
ITALY -- 4.2%
Assicurazioni Generali 4,160 133,357
Banca di Roma 13,000 17,489
Banca Popolare di
Brescia 4,000 169,219
Ente Nazionale
Idrocarburi SPA 33,000 192,847
Instituto Nazionale
delle Assicurazioni 31,000 94,001
Italgas SPA 5,000 20,653
Mediolanum SPA 10,000 81,246
San Paolo-IMI SPA 9,225 119,454
Tecnost SPA* 17,600 33,852
Telecom Italia Mobile
SPA 54,000 337,135
Telecom Italia SPA 24,000 207,099
Unicredito Italiano SPA 24,000 112,252
-----------
1,518,604
-----------
JAPAN -- 21.3%
Bridgestone Corp.* 2,000 55,002
Canon, Inc. 12,000 339,210
Citizen Watch Co. Ltd. 3,000 21,186
Daiichi Pharmaceutical
Co. Ltd. 2,000 28,651
Daiwa House Industry Co.
Ltd. 7,000 63,990
DDI Corp. 16 174,780
</TABLE>
<TABLE>
SHARES VALUE
- ---------------------------------------------------
<CAPTION>
- ---------------------------------------------------
<S> <C> <C>
Denso Corp. 10,000 $ 213,683
East Japan Railway Co.
Ltd. 17 104,092
Fanuc Co. 1,400 108,662
Fujitsu Ltd. 8,000 240,705
Hitachi Ltd. 12,000 129,590
Honda Motor Co. Ltd. 1,000 42,162
Ito-Yokado Co. Ltd. 2,000 159,831
Kao Corp. 7,000 213,300
Kokuyo Co. Ltd. 4,000 72,557
Komori Corp. 3,000 65,111
Kuraray Co. Ltd. 9,000 120,736
Kyocera Corp. 3,000 287,466
Makita Corp. 4,000 38,367
Matsushita Electric
Industrial Co. 14,000 294,461
Mauri Co. Ltd. 10,000 188,770
Mitsubishi Corp. 7,000 50,307
Mitsubishi Heavy
Industries Ltd. 39,000 152,846
Mitsui Fudosan Co. Ltd. 19,000 141,826
Murata Manufacturing Co.
Ltd. 4,000 511,690
NEC Corp. 22,000 444,806
Nippon Telegraph &
Telephone Corp. 30 459,946
Nomura Securities Co.
Ltd. 15,000 247,365
NTT Mobile Communication
Network, Inc. 10 265,427
Sankyo Co. Ltd. 10,000 284,592
Sekisui Chemical Co.
Ltd. 10,000 49,157
Sekisui House Ltd. 7,000 75,728
Seven-Eleven Japan Co.
Ltd. 2,000 183,020
Shin-Etsu Chemical Co.
Ltd. 3,000 123,611
Shiseido Co. Ltd. 4,000 60,943
Sony Corp. 3,300 514,161
Sumitomo Bank Ltd.* 9,000 144,711
Sumitomo Corp. 14,000 102,223
Sumitomo Electric
Industries 15,000 201,370
TDK Corp. 3,000 293,503
Tokio Marine & Fire
Insurance Co. Ltd. 3,000 39,239
Tokyo Electron Ltd. 1,000 82,982
Toppan Printing Co. Ltd. 6,000 73,534
Toshiba Corp.* 23,000 144,576
UNY Co. Ltd. 4,000 51,744
Yamanouchi
Pharmaceutical Co.
Ltd.* 3,000 135,972
-----------
7,797,591
-----------
KOREA -- 0.4%
Korea Telecom Corp.
[ADR]* 2,000 70,500
Samsung Electronics Co. 500 83,368
-----------
153,868
-----------
</TABLE>
97
<PAGE> 101
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
MEXICO -- 1.4%
Cemex SA de CV [ADR]* 2,400 $ 54,000
Cemex SA de CV Cl-B 5,000 22,580
Fomento Economico
Mexicano SA de CV UBD
Units 13,000 42,107
Gruma Rights* 1,123 0
Gruma SA [ADR]* 203 1,053
Gruma SA Cl-B* 4,134 5,390
Grupo Industrial Maseca
SA de CV Cl-B 17,000 8,471
Grupo Modelo SA de CV
Cl-C 12,000 29,276
Grupo Televisa SA [GDR]* 1,000 42,500
Kimberly-Clark de Mexico
SA Cl-A 11,000 35,173
Telefonos de Mexico SA
Cl-L [ADR] 3,000 256,500
TV Azteca SA de CV
[ADR]* 1,000 4,063
-----------
501,113
-----------
NETHERLANDS -- 7.6%
ABN AMRO Holding NV 7,210 174,220
AKZO Nobel NV 490 21,085
ASM Lithography Holding
NV* 3,550 250,365
CSM NV 2,280 105,082
Elsevier NV 5,680 53,909
Equant NV* 600 58,333
Fortis (NL) NV 6,660 229,110
Gucci Group NV NY Reg 1,100 88,825
ING Groep NV 8,820 519,875
Koninklijke (Royal)
Philips Electronics NV 3,200 327,927
KPN NV 640 32,820
Royal Dutch Petroleum
Co. 4,190 250,273
TNT Post Group NV 580 14,753
Unilever NV 1,191 78,863
United Pan-Europe
Communications NV* 507 38,954
VNU NV 2,260 76,368
Wolters Kluwer NV 13,660 456,133
-----------
2,776,895
-----------
NEW ZEALAND -- 0.2%
Telecom Corp. of New
Zealand Ltd. 19,000 76,363
-----------
NORWAY -- 0.6%
Norsk Hydro AS 940 37,506
Orkla ASA Cl-A 10,520 146,845
Orkla ASA Rights* 10,520 19,800
-----------
204,151
-----------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
PORTUGAL -- 0.4%
Jeronimo Martins SGPS SA 5,733 159,921
SINGAPORE -- 0.6%
Singapore Press Holdings
Ltd. 3,149 $ 53,939
Singapore
Telecommunications 14,000 26,589
United Overseas Bank
Ltd. 18,000 136,312
-----------
216,840
-----------
SPAIN -- 2.8%
Argentaria Caja Postal Y
Banco Hipotecario de
Espana SA 2,970 65,866
Banco Bilbao Vizcaya SA 3,350 44,999
Banco Popular Espanol SA 540 36,324
Banco Santander Central
Hispano SA 16,722 173,472
Endesa SA 4,940 98,807
Gas Natural SDG SA 2,500 54,655
Iberdrola SA 8,110 118,143
Repsol SA 4,763 98,121
Telefonica SA 20,855 342,822
-----------
1,033,209
-----------
SWEDEN -- 3.2%
AstraZeneca Group PLC 6,330 285,449
Atlas Copco AB Cl-B 1,820 47,277
Electrolux AB Cl-B 9,700 193,100
Ericsson, (L.M.)
Telephone Co. Cl-B 1,070 44,420
Esselte AB 650 4,340
Hennes & Mauritz AB Cl-B 13,350 354,078
Nordbanken Holding Co.
AB 24,870 144,905
Sandvik AB Cl-B 2,630 67,999
Securitas AB Cl-B 2,245 33,246
-----------
1,174,814
-----------
SWITZERLAND -- 6.7%
ABB AG* 1,582 159,369
ABB Ltd.* 919 91,362
Adecco SA 530 321,393
Credit Suisse Group 750 144,218
Nestle SA 310 598,133
Novartis AG 280 418,969
Roche Holding AG 30 360,298
Swisscom AG* 123 37,496
UBS AG 1,152 335,301
-----------
2,466,539
-----------
TAIWAN -- 0.2%
Hon Hai Precision
Industry Co. Ltd.
[GDR] 144A* 3,605 59,050
-----------
</TABLE>
98
<PAGE> 102
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
UNITED KINGDOM -- 16.5%
Abbey National PLC 11,000 $ 214,794
BG PLC 10,000 55,422
British Petroleum Co.
PLC 18,000 174,412
Cable & Wireless PLC 22,000 256,670
Cadbury Schweppes PLC 38,000 248,638
Caradon PLC 9,000 21,266
Centrica PLC* 5,400 15,662
Compass Group PLC 28,000 299,564
Diageo PLC 42,776 431,677
Electrocomponents PLC 7,000 62,715
GKN PLC 2,000 31,965
Glaxo Wellcome PLC 17,000 501,001
Hays PLC 5,000 57,144
Kingfisher PLC 39,000 425,249
Ladbroke Group PLC 14,000 42,614
National Westminster
Bank PLC 38,000 856,750
Rank Group PLC 7,000 21,795
Reed International PLC 45,355 264,202
Rio Tinto PLC 12,000 204,982
Safeway PLC 11,000 34,475
Shell Transport &
Trading Co. PLC 75,000 574,112
Smith, (Davis S.)
Holdings PLC 11,000 34,475
SmithKline Beecham PLC 41,000 527,453
Tesco PLC 57,000 169,292
Tomkins PLC 30,248 102,370
Unilever PLC 15,714 145,557
United News & Media PLC 12,000 115,388
Vodafone AirTouch PLC 33,500 153,194
-----------
6,042,838
-----------
TOTAL INVESTMENTS -- 93.8%
(Cost $30,115,237) 34,319,231
OTHER ASSETS LESS
LIABILITIES -- 6.2% 2,260,245
-----------
NET ASSETS -- 100.0% $36,579,476
===========
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1999:
<TABLE>
<CAPTION>
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS UNREALIZED
MONTH TYPE RECEIVE FOR AT VALUE DEPRECIATION
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/99 Buy AUD 9,119 $ 5,902 $ 5,815 $ 87
11/99 Buy HKD 626,600 80,644 80,642 2
------- ------- ----
$86,546 $86,457 $ 89
======= ======= ====
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS APPRECIATION
MONTH TYPE DELIVER FOR AT VALUE (DEPRECIATION)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
11/99 Sell 77,640 $ 81,408 $ 81,846 $(438)
EUR
11/99 Sell 54,925 90,643 90,144 499
GBP
-------- -------- -----
$172,051 $171,990 $ 61
======== ======== =====
</TABLE>
See Notes to Financial Statements.
99
<PAGE> 103
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO
- -------------------------------------------------------
The following is a breakdown of the foreign stock portion of the Portfolio, by
industry classification, as of October 31, 1999. Percentages are based on net
assets.
<TABLE>
<CAPTION>
INDUSTRY
- --------
<S> <C>
Automobile Manufacturers 1.0%
Automotive Parts 0.2%
Beverages 0.8%
Broadcasting 0.3%
Building Materials 0.7%
Business Services 1.2%
Chemicals 0.9%
Clothing & Apparel 0.5%
Computer Services & Software 1.7%
Conglomerates 1.7%
Construction 1.1%
Consumer Products & Services 3.2%
Electronic Components & Equipment 11.0%
Entertainment & Leisure 1.5%
Equipment Services 0.2%
Financial -- Bank & Trust 11.9%
Financial Services 3.5%
Food 7.4%
Hotels & Motels 0.1%
Industrial Products 1.2%
Insurance 2.6%
Machinery & Equipment 1.9%
Medical Supplies & Equipment 0.8%
Metals & Mining 0.8%
Office Equipment 0.9%
Oil & Gas 3.7%
Paper & Forest Products 0.4%
Pharmaceuticals 7.1%
Printing & Publishing 3.3%
Real Estate 1.0%
Retail & Merchandising 2.4%
Semiconductors 1.3%
Telecommunications 15.6%
Transportation 0.5%
Utilities 1.4%
-----
TOTAL 93.8%
=====
</TABLE>
- -------------------------------------------------------
Unless otherwise noted, all stocks are common stock.
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
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 0.2% of net assets.
100
<PAGE> 104
AMERICAN SKANDIA MASTER TRUST
ASMT JANUS CAPITAL
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
SHARES VALUE
- ----------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 79.8%
ADVERTISING -- 0.2%
DoubleClick, Inc.* 19,530 $ 2,734,200
--------------
BEVERAGES -- 0.5%
Coca-Cola Co. 120,620 7,116,580
--------------
COMPUTER HARDWARE -- 7.8%
Apple Computer,
Inc.* 483,080 38,706,785
Dell Computer
Corp.* 1,152,145 46,229,818
EMC Corp.* 244,580 17,854,340
--------------
102,790,943
--------------
COMPUTER SERVICES & SOFTWARE -- 23.6%
America Online,
Inc.* 793,460 102,901,845
Cisco Systems,
Inc.* 1,081,269 80,013,906
Intuit, Inc.* 229,545 6,685,498
Microsoft Corp.* 563,300 52,140,456
VERITAS Software
Corp.* 478,090 51,573,959
Yahoo!, Inc.* 97,590 17,474,709
--------------
310,790,373
--------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 9.7%
General Electric
Co. 410,290 55,619,938
Metromedia Fiber
Network, Inc.
Cl-A* 161,540 5,340,916
Texas Instruments,
Inc. 755,080 67,768,430
--------------
128,729,284
--------------
ENTERTAINMENT & LEISURE -- 4.9%
Time Warner, Inc. 939,550 65,474,891
--------------
FINANCIAL SERVICES -- 2.4%
Fannie Mae 149,335 10,565,451
Schwab, (Charles)
Corp. 560,710 21,832,646
--------------
32,398,097
--------------
INSURANCE -- 4.3%
American
International
Group, Inc. 438,975 45,186,989
Progressive Corp. 124,325 11,507,833
--------------
56,694,822
--------------
OFFICE EQUIPMENT -- 0.5%
Staples, Inc.* 274,492 6,090,291
--------------
PHARMACEUTICALS -- 3.5%
MedImmune, Inc.* 400,815 44,891,280
Pfizer, Inc. 41,784 1,650,468
--------------
46,541,748
--------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
RETAIL & MERCHANDISING -- 8.3%
Amazon.com, Inc.* 302,540 $ 21,366,888
Costco Companies,
Inc.* 142,045 11,407,989
Home Depot, Inc. 476,800 35,998,400
Wal-Mart Stores,
Inc. 722,255 41,258,816
--------------
110,032,093
--------------
TELECOMMUNICATIONS -- 14.1%
Level 3
Communications,
Inc.* 244,840 16,740,935
Nokia Corp. Cl-A
[ADR] 652,645 75,421,287
Sprint Corp. (PCS
Group)* 551,240 45,718,468
Vodafone AirTouch
PLC [ADR] 690,355 33,093,893
WinStar
Communications,
Inc.* 400,000 15,525,000
--------------
186,499,583
--------------
TOTAL COMMON STOCK
(Cost $800,228,688) 1,055,892,905
--------------
FOREIGN STOCK -- 0.7%
TELECOMMUNICATIONS
Vodafone AirTouch
PLC -- (GBP)
(Cost $8,599,475) 1,876,215 8,712,691
</TABLE> --------------
<TABLE>
<CAPTION>
PAR
(000)
-----
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 13.5%
Federal Mortgage
Corp.
5.24%, 12/03/99 $25,000 24,881,677
5.55%, 01/10/00 25,000 24,718,646
--------------
49,600,323
--------------
Federal National
Mortgage Assoc.
4.97%, 02/01/00 15,000 14,803,271
5.09%, 04/03/00 10,922 10,679,553
5.17%, 11/16/99 30,000 29,934,234
5.20%, 11/23/99 20,000 19,935,385
5.21%, 12/02/99 20,000 19,908,801
5.48%, 01/24/00-
01/28/00 35,000 34,524,306
--------------
129,785,550
--------------
(Cost $179,429,751) 179,385,873
--------------
</TABLE>
101
<PAGE> 105
ASMT JANUS CAPITAL
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
CORPORATE OBLIGATIONS -- 0.0%
ENTERTAINMENT & LEISURE -- 0.0%
Venetian Casino
Resort LLC
12.25%, 11/15/04 $ 275 $ 217,250
--------------
TELECOMMUNICATIONS -- 0.0%
Lenfest
Communications,
Inc.
7.625%, 02/15/08 140 141,050
8.25%, 02/15/08 175 178,063
--------------
319,113
--------------
TOTAL CORPORATE OBLIGATIONS
(Cost $589,653) 536,363
--------------
COMMERCIAL PAPER -- 4.9%
Associates First
Capital Corp.
5.30%, 11/01/99 10,000 10,000,000
CIT Group Holdings,
Inc.
5.26%, 11/01/99 55,400 55,400,000
--------------
(Cost $65,400,000) 65,400,000
--------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.0%
Temporary
Investment Cash
Fund 17,462 $ 17,462
Temporary
Investment Fund 17,462 17,462
--------------
(Cost $34,924) 34,924
--------------
TOTAL INVESTMENTS -- 98.9%
(Cost $1,054,282,491) 1,309,962,756
OTHER ASSETS LESS
LIABILITIES -- 1.1% 14,319,906
--------------
NET ASSETS -- 100.0% $1,324,282,662
==============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
See Notes to Financial Statements.
102
<PAGE> 106
AMERICAN SKANDIA MASTER TRUST
ASMT INVESCO
EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
COMMON STOCK -- 73.0%
AEROSPACE -- 3.4%
AlliedSignal, Inc. 40,000 $ 2,277,500
General Motors Corp.
Cl-H* 50,000 3,640,625
Northrop Grumman Corp. 23,000 1,262,125
------------
7,180,250
------------
AUTOMOBILE MANUFACTURERS -- 1.0%
Ford Motor Co. 39,900 2,189,513
------------
BEVERAGES -- 2.9%
Anheuser-Busch
Companies, Inc. 23,000 1,651,688
Coca-Cola Co. 43,800 2,584,200
Coors, (Adolph) Co.
Cl-B 34,000 1,887,000
------------
6,122,888
------------
BROADCASTING -- 0.7%
AT&T Corp. Liberty
Media Group Cl-A* 36,000 1,428,750
------------
CHEMICALS -- 0.3%
Lyondell Chemical Co. 50,000 606,250
------------
COMPUTER SERVICES & SOFTWARE -- 2.4%
America Online, Inc.* 8,400 1,086,225
Computer Associates
International, Inc. 23,200 1,310,800
Microsoft Corp.* 30,000 2,776,875
------------
5,173,900
------------
CONGLOMERATES -- 1.4%
Philip Morris
Companies, Inc. 30,000 755,625
Textron, Inc. 30,000 2,315,625
------------
3,071,250
------------
CONSUMER PRODUCTS & SERVICES -- 1.8%
Colgate-Palmolive Co. 30,000 1,815,000
Procter & Gamble Co. 20,000 2,097,500
------------
3,912,500
------------
ELECTRONIC COMPONENTS & EQUIPMENT -- 5.0%
General Electric Co. 32,800 4,446,450
Tandy Corp.* 68,400 4,304,925
Texas Instruments,
Inc. 20,000 1,795,000
------------
10,546,375
------------
ENTERTAINMENT & LEISURE -- 0.9%
Park Place
Entertainment Corp.* 140,000 1,837,500
------------
FINANCIAL -- BANK & TRUST -- 6.6%
Bank of New York Co.,
Inc. 70,000 2,931,249
Charter One Financial,
Inc. 91,225 2,240,702
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
Chase Manhattan Corp. 30,000 $ 2,621,250
Morgan, (J.P.) & Co.,
Inc. 20,000 2,617,500
Summit Bancorp 30,000 1,038,750
Wells Fargo & Co. 51,000 2,441,625
------------
13,891,076
------------
FINANCIAL SERVICES -- 2.6%
Citigroup, Inc. 60,000 3,247,500
Morgan Stanley, Dean
Witter & Co. 21,000 2,316,563
------------
5,564,063
------------
FOOD -- 4.1%
General Mills, Inc. 13,650 1,190,109
Heinz, (H.J.) Co. 44,000 2,101,000
Kellogg Co. 49,000 1,950,813
Quaker Oats Co. 30,000 2,100,000
Tasty Baking Co. 120,000 1,275,000
------------
8,616,922
------------
HOTELS & MOTELS -- 0.4%
Hilton Hotels Corp. 10,000 92,500
Marriott
International, Inc.
Cl-A 20,700 697,331
------------
789,831
------------
INSURANCE -- 3.2%
Allmerica Financial
Corp. 70,000 4,003,125
Ohio Casualty Corp. 13,000 216,938
Travelers Property
Casualty Corp. Cl-A 70,000 2,520,000
------------
6,740,063
------------
MEDICAL SUPPLIES & EQUIPMENT -- 1.1%
Medtronic, Inc. 70,000 2,423,750
------------
METALS & MINING -- 0.3%
Phelps Dodge Corp. 13,000 732,875
------------
OIL & GAS -- 7.5%
Apache Corp. 51,000 1,989,000
Atlantic Richfield Co. 30,000 2,795,624
Exxon Corp. 36,100 2,673,656
National Fuel Gas Co. 40,000 1,955,000
Royal Dutch Petroleum
Co. 30,000 1,798,125
Schlumberger Ltd. 45,000 2,725,313
Unocal Corp. 55,700 1,921,650
------------
15,858,368
------------
PAPER & FOREST PRODUCTS -- 1.8%
Champion International
Corp. 30,000 1,734,375
Weyerhaeuser Co. 35,000 2,089,063
------------
3,823,438
------------
</TABLE>
103
<PAGE> 107
ASMT INVESCO
EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS -- 8.5%
American Home Products
Corp. 48,500 $ 2,534,125
Bristol-Meyers Squibb
Co. 44,000 3,379,750
Merck & Co., Inc. 35,000 2,784,688
Pfizer, Inc. 48,100 1,899,950
Pharmacia & Upjohn,
Inc. 28,000 1,510,250
SmithKline Beecham PLC
[ADR] 25,000 1,600,000
Warner-Lambert Co. 52,000 4,150,249
------------
17,859,012
------------
RAILROADS -- 2.3%
Kansas City Southern
Industries, Inc. 75,000 3,557,813
Norfolk Southern Corp. 50,000 1,221,875
------------
4,779,688
------------
REAL ESTATE -- 0.0%
HRPT Properties Trust
[REIT] 7,100 65,231
Senior Housing
Properties Trust
[REIT]* 710 8,698
------------
73,929
------------
RESTAURANTS -- 1.2%
McDonald's Corp. 60,000 2,475,000
------------
RETAIL & MERCHANDISING -- 3.6%
Costco Companies,
Inc.* 13,300 1,068,156
Dayton-Hudson Corp. 39,000 2,520,375
Penney, (J.C.) Co.,
Inc. 50,000 1,268,750
Wal-Mart Stores, Inc. 49,800 2,844,825
------------
7,702,106
------------
SEMICONDUCTORS -- 2.0%
Intel Corp. 38,000 2,942,625
Maxim Integrated
Products, Inc.* 17,000 1,341,938
------------
4,284,563
------------
TELECOMMUNICATIONS -- 6.4%
Bell Atlantic Corp. 31,300 2,032,544
GTE Corp. 27,200 2,040,000
Lucent Technologies,
Inc. 20,400 1,310,700
SBC Communications,
Inc. 87,372 4,450,510
U.S. West, Inc. 60,000 3,663,750
------------
13,497,504
------------
TRANSPORTATION -- 0.4%
Galileo International,
Inc. 30,700 922,919
------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
UTILITIES -- 1.2%
Northern States Power
Co. 59,200 $ 1,272,800
Unicom Corp. 33,100 1,268,144
------------
2,540,944
------------
TOTAL COMMON STOCK
(Cost $138,887,372) 154,645,227
------------
</TABLE>
<TABLE>
<CAPTION>
PAR
(000)
-------
<S> <C> <C>
CORPORATE OBLIGATIONS -- 18.2%
ADVERTISING -- 0.1%
MDC Corp., Inc.
10.50%, 12/01/06 $ 250 250,625
------------
AIRLINES -- 0.3%
Delta Air Lines, Inc.
10.375%, 12/15/22 500 593,125
------------
BROADCASTING -- 0.4%
Continental Cablevision, Inc.
9.50%, 08/01/13 250 280,000
Jacor Communications Co.
9.75%, 12/15/06 500 526,250
------------
806,250
------------
BUILDING MATERIALS -- 0.2%
USG Corp.
8.50%, 08/01/05 500 526,037
------------
BUSINESS SERVICES -- 0.1%
NEXTLINK
Communications, Inc.
[STEP]
11.51%, 04/15/08 250 153,750
------------
CABLE TELEVISION -- 0.8%
Charter Communication
Holdings LLC
8.62%, 04/01/09 400 379,000
Comcast U.K. Cable
Corp. [STEP]
7.137%, 11/15/07 750 684,375
Telewest
Communications PLC
[STEP]
10.926%, 10/01/07 750 682,500
------------
1,745,875
------------
CHEMICALS -- 0.2%
Equistar Chemicals
L.P.
7.55%, 02/15/26 250 198,750
Huntsman ICI Chemicals
144A
10.125%, 07/01/09 250 248,125
------------
446,875
------------
</TABLE>
104
<PAGE> 108
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
ENTERTAINMENT & LEISURE -- 0.3%
Hollywood Casino Corp.
11.25%, 05/01/07 $ 500 $ 504,375
Time Warner
Entertainment Co.
7.25%, 09/01/08 100 99,875
------------
604,250
------------
ENVIRONMENTAL SERVICES -- 0.2%
Allied Waste North
America Co. 144A
10.00%, 08/01/09 500 427,500
------------
FINANCIAL SERVICES -- 0.2%
Associates Corp. of
North America Cl-E
7.375%, 06/11/07 500 505,878
------------
HEALTHCARE SERVICES -- 0.0%
FHP International
Corp.
7.00%, 09/15/03 50 49,688
------------
HOTELS & MOTELS -- 0.1%
Hilton Hotels Corp.
7.20%, 12/15/09 250 222,188
------------
INSURANCE -- 0.5%
Progressive Corp.
6.625%, 03/01/29 500 430,000
The Equitable Companies,
Inc.
9.00%, 12/15/04 500 541,250
------------
971,250
------------
MACHINERY & EQUIPMENT -- 0.4%
Nationsrent, Inc.
10.375%, 12/15/08 500 486,250
United Rentals, Inc.
9.25%, 01/15/09 500 453,750
------------
940,000
------------
OIL & GAS -- 1.8%
Atlantic Richfield Co.
10.875%, 07/15/05 500 586,875
Belco Oil & Gas Corp.
Cl-B
8.875%, 09/15/07 100 95,250
Canadian Forest Oil
Ltd.
8.75%, 09/15/07 500 477,500
Cliffs Drilling Co.
Cl-B
10.25%, 05/15/03 250 250,000
CMS Panhandle Holding
Co.
6.50%, 07/15/09 500 461,690
Forest Oil Corp.
10.50%, 01/15/06 500 517,500
Gulf Canada Resources
Ltd.
8.25%, 03/15/17 100 93,000
Mobil Corp.
8.625%, 08/15/21 500 576,250
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Noram Energy Corp.
[CVT]
6.00%, 03/15/12 $ 100 $ 89,000
Ocean Energy, Inc.
Cl-B
8.875%, 07/15/07 250 248,125
Vastar Resources, Inc.
6.50%, 04/01/09 500 478,125
------------
3,873,315
------------
PAPER & FOREST PRODUCTS -- 0.2%
Chesapeake Corp.
7.20%, 03/15/05 500 500,625
------------
TELECOMMUNICATIONS -- 5.8%
AT&T Corp.
6.00%, 03/15/09 400 370,500
Call-Net Enterprises,
Inc. [STEP]
10.80%, 05/15/09 500 281,250
Cencall Communications
Corp.
9.80%, 01/15/04 490 498,575
Centel Capital Corp.
9.00%, 10/15/19 250 279,688
Global Crossing
Holdings Ltd.
9.625%, 05/15/08 500 506,250
GTE Corp.
7.90%, 02/01/27 731 723,690
Level 3 Communications,
Inc.
9.125%, 05/01/08 250 231,875
6.27%, 12/01/08
[STEP] 250 146,875
11.044%, 12/01/08
[STEP] 144A 500 293,750
Lin Television Co.
8.375%, 03/01/08 250 232,500
McLeodUSA, Inc.
9.50%, 11/01/08 250 251,250
Metromedia Fiber
Network, Inc. Cl-B
10.00%, 11/15/08 750 742,500
MetroNet
Communications Corp.
[STEP]
6.274%, 06/15/08 2,500 1,949,999
NEXTLINK
Communications, Inc.
9.625%, 10/01/07 250 239,375
10.75%, 11/15/08
144A 250 253,125
Paramount
Communication
8.25%, 08/01/22 700 690,375
PSINet, Inc. 144A
11.00%, 08/01/09 250 256,250
</TABLE>
105
<PAGE> 109
ASMT INVESCO
EQUITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Qwest Communications
International, Inc. Cl-B
7.321%, 02/01/08
[STEP] $ 500 $ 382,500
7.25%, 11/01/08 250 245,313
Renaissance Media
Group [STEP]
3.87%, 04/15/08 598 412,620
TCI
Telecommunications,
Inc.
7.875%, 02/15/26 500 518,125
TeleCommunications,
Inc.
9.80%, 02/01/12 500 601,875
US West Communications
5.65%, 11/01/04 650 618,093
Williams
Communications
Group, Inc.
10.875%, 10/01/09 500 513,750
Worldwide Fiber, Inc. 144A
12.50%, 12/15/05 250 256,250
12.00%, 08/01/09 500 502,500
------------
11,998,853
------------
UTILITIES -- 6.6%
Cleveland Electric
Illuminating Co.
7.43%, 11/01/09 250 243,438
9.00%, 07/01/23 250 253,750
Cleveland Electric
Illuminating Co.
Cl-D
7.88%, 11/01/17 250 244,688
Coda Energy, Inc. Cl-B
10.50%, 04/01/06 150 153,750
Commonwealth Edison Co.
8.00%, 05/15/08 400 413,500
8.375%, 02/15/23 428 433,350
Connecticut Light &
Power Co. Cl-C
8.50%, 06/01/24 1,250 1,261,262
Consumers Energy Co.
7.375%, 09/15/23 500 452,500
Duquesne Light Co.
8.375%, 05/15/24 1,000 1,002,499
El Paso Electric Co.
8.90%, 02/01/06 500 521,250
El Paso Electric Co.
Cl-C
8.25%, 02/01/03 200 204,500
Gulf Power Co.
6.875%, 01/01/26 500 446,250
Gulf States Utilities
8.70%, 04/01/24 250 250,000
Jersey Central Power &
Light Co.
7.98%, 02/16/23 500 494,750
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
Metropolitan Edison
Co. Cl-B
8.15%, 01/30/23 $ 75 $ 74,183
New York State
Electric & Gas Corp.
8.30%, 12/15/22 200 202,000
Niagara Mohawk Power
Corp.
8.50%, 07/01/23 500 505,000
8.50%, 07/01/23 124 125,860
Niagara Mohawk Power
Corp. Cl-H [STEP]
7.529%, 07/01/10 1,000 731,250
Potomic Edison Co.
8.00%, 06/01/24 500 497,500
7.75%, 05/01/25 650 632,125
Public Service Co. of
New Mexico Cl-A
7.10%, 08/01/05 750 727,500
Public Service Co. of
New Mexico Cl-B
7.50%, 08/01/18 760 716,300
Public Service
Electric & Gas Co.
6.375%, 05/01/08 500 470,625
Public Service of
Colorado
9.875%, 07/01/20 500 529,375
Southwestern Public
Service Co.
8.20%, 12/01/22 750 757,500
Texas Utilities
7.375%, 10/01/25 500 466,250
Union Electric Co.
8.75%, 12/01/21 750 783,750
Western Massachusetts
Electric Co. Cl-V
7.75%, 12/01/02 250 250,467
------------
13,845,172
------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $40,231,823) 38,461,256
------------
U.S. TREASURY OBLIGATIONS -- 2.8%
U.S. Treasury Notes
5.625%, 05/15/08
(Cost $6,491,948) 6,250 6,030,354
------------
COMMERCIAL PAPER -- 3.5%
American Express
Credit Corp.
5.20%, 11/01/99
(Cost $7,500,000) 7,500 7,500,000
------------
</TABLE>
106
<PAGE> 110
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ---------------------------------------------------
SHARES VALUE
- ---------------------------------------------------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 2.7%
Temporary Investment
Cash Fund 2,854,721 $ 2,854,721
Temporary Investment
Fund 2,854,721 2,854,721
------------
(Cost $5,709,442) 5,709,442
------------
TOTAL INVESTMENTS --100.2%
(Cost $198,820,585) 212,346,279
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (0.2%) (327,746)
------------
NET ASSETS -- 100.0% $212,018,533
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
* Non-income producing security.
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 0.6% of net assets.
See Notes to Financial Statements.
107
<PAGE> 111
ASMT PIMCO TOTAL
RETURN BOND PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR)
(000 VALUE
- ----------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 23.1%
Federal Home Loan
Mortgage Corp.
6.00%, 01/19/30
[TBA] $8,220 $ 7,660,054
6.30%, 06/01/04 3,000 2,942,702
6.50%, 08/15/23-
12/15/23 4,962 4,898,812
------------
15,501,568
------------
Federal National
Mortgage Assoc.
5.74%, 12/01/27
[VR] 229 225,023
5.812%, 01/01/28
[VR] 245 240,610
5.82%, 05/01/36
[VR] 213 209,264
6.50%, 05/18/23 2,385 2,364,001
7.00%, 02/15/27 3,614 3,263,324
8.50%, 08/01/24-
12/01/25 852 884,101
------------
7,186,323
------------
Government National
Mortgage Assoc.
6.50%, 01/25/30
[TBA] 4,000 3,813,760
6.875%, 02/01/40-
02/04/40 5,000 4,930,614
7.00%, 11/15/27 413 405,495
7.00%, 11/22/29
[TBA] 7,900 7,749,426
------------
16,899,295
------------
Student Loan
Marketing Assoc.
[VR]
5.349%, 07/25/04 1,162 1,157,295
------------
(Cost $41,229,242) 40,744,481
------------
U.S. TREASURY OBLIGATIONS -- 8.7%
U.S. Treasury Bills
4.68%, 02/10/00 # 85 83,831
4.71%, 02/17/00 # 55 54,198
4.82%, 02/17/00 # 100 98,542
4.935%, 02/17/00 # 50 49,271
------------
285,842
------------
U.S. Treasury Bonds
12.00%, 08/15/13 8,800 12,064,333
------------
U.S. Treasury
Inflationary Bonds
3.625%, 01/15/08 827 798,310
3.875%, 01/15/09-
04/15/29 1,832 1,783,499
------------
2,581,809
------------
U.S. Treasury Notes
5.50%, 02/29/00 # 325 325,307
------------
(Cost $15,460,026) 15,257,291
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS -- 31.1%
Brazo 1998-A Cl-A2
[FRB]
5.83%, 06/01/23 $5,000 $ 4,872,875
Centre Series 1999
144A
6.71%, 02/01/09 2,996 2,826,502
Chase Mortgage
Finance Corp.
1995-A Cl-A
6.204%, 04/25/25 2,033 2,039,339
Chase Series 1999-S8
Cl-A1 [VR]
6.35%, 06/25/29 5,000 4,925,975
Countrywide Home
Loans Series
1998-18 Cl-2A3
6.75%, 11/25/28 1,000 937,677
Countrywide Home
Loans Series 1999-7
Cl-A3
6.25%, 06/25/14 4,933 4,638,887
Federal Housing
Authority
6.68%, 01/01/09 889 885,296
First Plus Home Loan
Trust Series 1998-5
Cl-A3 [VR]
6.06%, 09/10/11 1,000 996,705
GE Capital Mortgage
Services, Inc.
Series 1999-11
Cl-Y2
6.00%, 05/25/29 3,100 3,032,591
GE Capital Mortgage
Services, Inc.
Series 1999-5
6.50%, 05/25/29 9,858 9,039,276
Green Tree Financial
Corp. 1999 Cl-A5
7.86%, 04/01/31 1,400 1,404,379
Merrill Lynch
Mortgage Investors,
Inc.
6.95%, 06/18/29 2,689 2,696,489
Morgan Stanley
Capital Corp.
Series 1997-H 144A
6.86%, 05/15/06 2,523 2,519,914
Norwest Asset
Securities Corp.
Series 1997-21
Cl-A2
7.00%, 01/25/28 2,388 2,343,100
</TABLE>
108
<PAGE> 112
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
Norwest Asset Securities
Corp. Series 1999-18
Cl-A2
6.00%, 07/25/29 $5,200 $ 4,912,466
Norwest Asset
Securities Corp.
Series 1999-25
Cl-A4
6.50%, 10/25/29 1,998 1,833,953
PNC Mortgage
Securities Corp.
Series 1998-10
Cl-1A6
6.50%, 10/25/28 2,000 1,820,228
Prudential Securities
Secured Financing
Co. Series 1999-C2
Cl-A1
6.955%, 06/15/08 2,965 2,953,311
------------
(Cost $56,298,614) 54,678,963
------------
CORPORATE OBLIGATIONS -- 39.7%
AEROSPACE -- 1.1%
Lockheed Martin Corp.
6.85%, 05/15/01 2,000 1,990,000
------------
AIRLINES -- 1.6%
Continental Airlines,
Inc.
6.954%, 02/02/11 2,999 2,896,190
------------
AUTOMOTIVE PARTS -- 2.8%
TRW, Inc. 144A
6.625%, 06/01/04 5,000 4,862,500
------------
CABLE TELEVISION -- 1.7%
Cox Communications,
Inc. [VR]
6.04%, 11/01/99 3,000 2,999,949
------------
CONGLOMERATES -- 0.6%
Philip Morris
Companies, Inc.
7.625%, 05/15/02 1,000 1,005,845
------------
CONSUMER PRODUCTS & SERVICES -- 1.1%
Sears Roebuck
Acceptance Corp.
Cl-2
6.86%, 08/06/01 2,000 2,002,500
------------
ENVIRONMENTAL SERVICES -- 2.5%
Waste Management,
Inc. 144A
6.50%, 05/14/04 5,000 4,321,550
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
FINANCIAL -- BANK & TRUST -- 3.8%
Bankers Trust Corp.
[FRN]
5.413%, 01/30/02 $1,000 $ 1,001,295
PNC Bank Corp. NA
[VR]
5.443%, 08/15/02 2,800 2,797,550
Popular North
America, Inc. Cl-D
6.625%, 01/15/04 3,000 2,918,231
------------
6,717,076
------------
FINANCIAL SERVICES -- 20.5%
AT&T Capital Corp.
6.83%, 12/01/00 3,100 3,100,000
Bear Stearns Co.
[FRN]
5.608%, 02/16/01 1,000 1,001,970
Bear Stearns Co. [VR]
5.888%, 03/18/05 500 500,621
Beneficial Corp. Cl-H
[FRN]
5.559%, 01/09/02 500 499,386
Caterpillar Financial
Services Corp.,
Inc.
5.625%, 02/11/02
[FRN] 500 499,766
6.875%, 08/01/04 4,000 3,970,000
Cincinnati Financial
Corp.
6.90%, 05/15/28 4,700 4,241,750
DTE Capital Corp.
[VR] 144A
7.11%, 11/15/03 3,000 2,943,750
Ford Motor Credit Co.
5.206%, 09/03/01
[FRN] 1,000 997,963
6.70%, 07/16/04 2,000 1,980,000
GMAC [FRN]
5.438%, 04/29/02 2,800 2,789,133
Goldman Sachs Group
Cl-A [FRN] 144A
5.798%, 12/07/01 2,000 1,995,080
Lehman Brothers
Holdings, Inc.
6.025%, 12/01/00 800 799,964
5.823%, 09/03/02
[FRN] 1,800 1,800,133
Merrill Lynch & Co.,
Inc. [FRN]
6.626%, 01/11/02 2,000 2,003,190
Morgan Stanley, Dean
Witter & Co. [FRN]
5.699%, 03/11/03 1,000 995,255
</TABLE>
109
<PAGE> 113
ASMT PIMCO TOTAL
RETURN BOND PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
New England Educational
Loan Marketing Assoc. Cl-
B [FRN] 144A
5.681%, 06/11/01 $1,000 $ 999,413
Pemex Finance Ltd.
144A
9.69%, 08/15/09 5,000 4,968,749
------------
36,086,123
------------
HEALTHCARE SERVICES -- 2.3%
Columbia HCA
Healthcare Corp.
6.63%, 07/15/45 4,275 4,050,563
------------
TELECOMMUNICATIONS -- 1.7%
Cable & Wireless
Communications PLC
6.75%, 12/01/08 2,000 2,045,000
MCI WorldCom, Inc.
6.125%, 08/15/01 1,000 993,750
------------
3,038,750
------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $71,139,839) 69,971,046
------------
<CAPTION>
PRINCIPAL
IN LOCAL
CURRENCY
(000)
---------
<S> <C> <C>
FOREIGN BONDS -- 4.3%
NEW ZEALAND -- 0.4%
New Zealand
Government
10.00%, 03/15/02 600 327,832
5.50%, 04/15/03 600 292,823
------------
620,655
------------
PHILIPPINES -- 1.1%
Philippine Long
Distance Telephone
10.50%, 04/15/09 2,000 1,987,500
------------
UNITED KINGDOM -- 2.8%
United Mexican States
8.75%, 05/30/02 3,000 4,878,529
------------
TOTAL FOREIGN BONDS
(Cost $7,222,362) 7,486,684
------------
<CAPTION>
PAR
(000)
---------
<S> <C> <C>
SOVEREIGN ISSUES -- 1.0%
ARGENTINA -- 0.5%
Republic of
Argentina++ [VR]
14.25%, 11/30/99 $1,000 952,500
------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------
PAR
(000) VALUE
- ----------------------------------------------------
<S> <C> <C>
PHILIPPINES -- 0.5%
Republic of
Philippines [BRB]
6.50%, 12/01/17 $1,000 $ 851,915
------------
TOTAL SOVEREIGN ISSUES
(Cost $1,722,986) 1,804,415
------------
COMMERCIAL PAPER -- 2.8%
Ford Motor Credit
Corp.
5.29%, 11/17/99 1,300 1,296,944
Mobil Australia
Finance
5.27%, 11/04/99 1,400 1,399,385
National Rural
Utilities
Cooperative Finance
Corp.
5.30%, 11/12/99 500 499,190
5.30%, 12/02/99 1,300 1,294,067
US West Capital
Funding Corp.+
6.14%, 03/24/00 500 487,780
------------
(Cost $4,977,306) 4,977,366
------------
CERTIFICATES OF DEPOSIT -- 0.6%
Mexico Credit Link
10.50%, 02/22/02
(Cost $1,000,000) 1,000 1,053,190
------------
<CAPTION>
SHARES
------
<S> <C> <C>
SHORT-TERM INVESTMENTS -- 0.6%
Temporary Investment
Cash Fund 546,824 546,824
Temporary Investment
Fund 546,824 546,824
------------
(Cost $1,093,648) 1,093,648
------------
TOTAL INVESTMENTS -- 111.9%
(Cost $200,144,023) 197,067,084
------------
<CAPTION>
NUMBER OF
CONTRACTS
---------
<S> <C> <C>
WRITTEN OPTIONS -- (0.1)%
CALL OPTIONS
30 Year Federal Home
Loan Mortgage
Corp., Strike Price
100-15, Expires
11/08/99+ 2 (5,320)
30 Year U.S. Treasury
Bond Futures,
Strike Price 120,
Expires 11/20/99 111 (1,734)
------------
(7,054)
------------
</TABLE>
110
<PAGE> 114
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ----------------------------------------------------
NUMBER OF
CONTRACTS VALUE
- ----------------------------------------------------
<S> <C> <C>
PUT OPTIONS
30 Year Federal Home
Loan Mortgage
Corp., Strike Price
99-14, Expires
11/08/99+ 1 $ (920)
30 Year Federal Home
Loan Mortgage
Corp., Strike Price
99-19.75, Expires
11/08/99+ 1 (2,220)
30 Year U.S. Treasury
Bond Futures,
Strike Price 110,
Expires 11/20/99 92 (5,750)
Eurodollar Futures,
Strike Price 93.5,
Expires 12/18/00 83 (78,850)
Eurodollar Futures,
Strike Price 94,
Expires 12/13/99 24 (6,300)
------------
(94,040)
------------
TOTAL WRITTEN OPTIONS
(Cost ($204,067)) (101,094)
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (11.8%) (20,866,502)
------------
NET ASSETS -- 100.0% $176,099,488
============
</TABLE>
Foreign currency exchange contracts outstanding at October 31, 1999:
<TABLE>
<CAPTION>
SETTLEMENT CONTRACTS TO IN EXCHANGE CONTRACTS UNREALIZED
MONTH TYPE RECEIVE FOR AT VALUE APPRECIATION
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
11/99 Sell GBP 3,060,000 $5,109,190 $5,030,661 $78,529
========== ========== =======
</TABLE>
- --------------------------------------------------------------------------------
#Securities with an aggregate market value of $611,149 have been segregated with
the custodian to cover margin requirements for the following open futures
contracts at October 31, 1999:
<TABLE>
<CAPTION>
NOTIONAL UNREALIZED
EXPIRATION AMOUNT APPRECIATION
DESCRIPTION MONTH (000) (DEPRECIATION)
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury 30 Year 12/99 $ 5,600 $ 33,640
Bond
U.S. Treasury 5 Year 12/99 600 (2,375)
Bond
Euro Dollar 12/99 EUR 750 1
Euro Dollar 06/00 EUR 23,000 (12,400)
Euro Dollar 12/00 EUR 8,750 (738)
--------
$ 18,128
========
</TABLE>
++Credit default swap agreements outstanding at October 31, 1999.
<TABLE>
<CAPTION>
NOTIONAL
EXPIRATION AMOUNT UNREALIZED
DESCRIPTION MONTH (000) DEPRECIATION
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Credit default on Republic
of Argentina Bonds
6.15% 03/01 $ 300 $ 7,746
5.70% 03/01 200 3,777
-------
$11,523
=======
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
+ Illiquid security. At the end of the year these securities amounted to less
than 0.1% 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 14.4% of net assets.
111
<PAGE> 115
ASMT JPM
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR)
(000 VALUE
- ---------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 17.6%
Federal Home Loan Bank
5.34%, 10/04/00 $ 5,000 $ 4,996,825
5.39%, 02/02/00 4,500 4,437,341
------------
9,434,166
------------
Federal Mortgage Corp.
5.20%, 11/01/99 24,156 24,156,000
------------
(Cost $33,590,166) 33,590,166
------------
CERTIFICATES OF DEPOSIT -- 17.3%
Abbey National
Treasury
5.22%, 05/11/00 1,500 1,499,620
Bank of Nova Scotia
[FRN]
5.15%, 01/20/00++ 2,000 1,999,459
Banque National de
Paris
5.39%, 12/02/99 4,000 4,000,000
Bayerische Hypo
Vereinsbank
5.15%, 04/25/00 2,000 1,999,443
Bayerische Landesbank
NY
5.11%, 03/21/00 2,500 2,498,615
5.87%, 08/04/00 1,000 999,782
6.11%, 10/02/00 3,000 2,995,174
Canadian Imperial Bank
5.01%, 02/07/00 1,500 1,499,883
Comerica Bank Notes
[FRN]
4.90%, 11/24/99++ 1,500 1,499,780
Commerzbank NY
4.99%, 01/25/00 1,500 1,499,916
Deutsche Bank
5.00%, 01/06/00 1,500 1,499,922
Dresdner Bank
4.95%, 11/09/99 1,500 1,499,987
PNC Bank Corp. [FRN]
5.20%, 11/12/99++ 3,000 2,998,980
Royal Bank of Canada
5.15%, 11/17/99 1,500 1,497,069
Westdeutsche
Landesbank
5.36%, 12/06/99 5,000 5,000,001
------------
(Cost $32,987,631) 32,987,631
------------
CORPORATE OBLIGATIONS -- 18.0%
FINANCIAL -- BANK &
TRUST -- 12.0%
Cades
4.90%, 11/23/99 2,000 1,994,011
Diageo Capital [PLC]
6.23%, 11/24/99 5,000 4,997,404
First Union National
Bank [FRN]
5.18%, 12/16/99++ 3,000 2,999,166
Fleet Financial Group
6.23%, 01/13/00 1,500 1,499,027
Key Bank NA
5.49%, 01/28/00 3,000 3,001,478
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR
(000) VALUE
- ---------------------------------------------------
<S> <C> <C>
NationsBank Corp. Cl-F
[FRN]
5.08%, 11/19/99++ $ 1,000 $ 1,000,635
NationsBank Texas
Corp.
6.75%, 08/15/00 1,000 1,005,558
SouthTrust Bank NA
[FRN]
5.36%, 11/24/99++ 5,000 4,994,775
Wells Fargo & Co. Cl-J
5.31%, 03/31/00 1,500 1,499,728
------------
22,991,782
------------
FINANCIAL SERVICES -- 4.7%
American Express
Centurion [FRN]
5.20%, 01/26/00++ 3,000 3,000,000
CIT Group, Inc.
5.25%, 11/03/99 3,500 3,497,325
Citigroup, Inc. [VR]
5.09%, 11/03/99 1,500 1,502,004
Xerox Credit Corp.
Cl-F
5.32%, 03/31/00 1,000 999,822
------------
8,999,151
------------
TELECOMMUNICATIONS -- 1.3%
AT&T Corp. [FRN]
6.13%, 01/13/00++ 2,500 2,499,303
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $34,490,236) 34,490,236
------------
COMMERCIAL PAPER -- 48.4%
CHEMICALS -- 2.3%
DuPont, (E.I.) de
Nemours & Co.
5.26%, 11/29/99 4,500 4,481,590
------------
CONSUMER PRODUCTS & SERVICES -- 4.2%
Gillette Co.
5.29%, 11/01/99 8,000 8,000,000
------------
FINANCIAL -- BANK & TRUST --11.2%
Bank of New York
5.75%, 02/22/00 3,000 2,945,854
BankAmerica Corp.
5.77%, 01/26/00 1,500 1,479,324
Caisse des Depots Et
Cons
5.32%, 11/01/99 5,000 5,000,000
Dresdner Bank U.S.
Finance, Inc.
5.29%, 11/24/99 3,000 2,989,861
Deutsche Bank
Financial Corp.
5.30%, 11/23/99 4,000 3,987,044
SunTrust Bank
5.26%, 11/29/99 5,000 4,979,544
------------
21,381,627
------------
</TABLE>
112
<PAGE> 116
AMERICAN SKANDIA MASTER TRUST
<TABLE>
<CAPTION>
- ---------------------------------------------------
PAR)
(000 VALUE
- ---------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES -- 20.8%
Aegon Funding Corp.
5.34%, 11/05/99 $ 2,000 $ 1,998,813
5.30%, 11/29/99 2,500 2,489,694
Associates Corp.
5.32%, 11/01/99 6,000 6,000,000
BBI North America
Funding Corp.
5.35%, 12/07/99 6,000 5,967,900
BellSouth Capital
Funding Corp.
5.68%, 02/10/00 3,500 3,444,226
General Electric
Capital Corp.
5.92%, 01/25/00 3,000 2,958,067
5.72%, 02/23/00 2,000 1,963,773
General Motors
Acceptance Corp.
5.72%, 03/17/00 3,000 2,934,697
UBS Finance, Inc.
5.31%, 11/01/99 6,000 6,000,000
Xerox Credit Corp.
5.30%, 11/19/99 6,000 5,984,100
------------
39,741,270
------------
PHARMACEUTICALS -- 3.1%
Pfizer, Inc.
5.29%, 11/10/99 5,000 4,993,388
5.27%, 12/01/99 1,000 995,608
------------
5,988,996
------------
RETAIL & MERCHANDISING -- 2.1%
Wal-Mart Stores, Inc.
5.30%, 12/13/99 4,000 3,975,267
------------
TELECOMMUNICATIONS -- 2.6%
British
Telecommunications
6.03%, 01/19/00 5,000 4,933,838
------------
UTILITIES -- 2.1%
The Southern Co.
5.75%, 02/09/00 4,000 3,936,111
------------
TOTAL COMMERCIAL PAPER
(Cost $92,438,699) 92,438,699
------------
TOTAL INVESTMENTS -- 101.3%
(Cost $193,506,732) 193,506,732
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (1.3%) (2,422,942)
------------
NET ASSETS -- 100.0% $191,083,790
============
</TABLE>
- -------------------------------------------------------
Definitions of abbreviations are included following the Schedules of
Investments.
++ Maturity date reflects the next interest rate change date.
DEFINITION OF ABBREVIATIONS
- -------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED THROUGHOUT
THE SCHEDULES OF INVESTMENTS:
SECURITY DESCRIPTIONS:
<TABLE>
<S> <C> <C>
ADR -- American Depositary Receipt
BRB -- Brady Bond
CVT -- Convertible Security
FDR -- Federal Depositary Receipt
FRB -- Floating Rate Bond(1)
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:
AUD -- Australia/Australian Dollar
EUR -- Europe/Euro Currency
GBP -- United Kingdom/British Pound
HKD -- Hong Kong/Hong Kong Dollar
</TABLE>
(1) Rates shown for variable and floating
rate securities are the coupon rates as of
October 31, 1999.
(2) Rates shown are the effective yields
at purchase date.
See Notes to Financial Statements.
113
<PAGE> 117
OCTOBER 31, 1999
AMERICAN SKANDIA MASTER TRUST
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT
ASMT ASMT ASMT PIMCO ASMT
T. ROWE PRICE JANUS INVESCO TOTAL 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) $34,319,231 $1,309,962,756 $212,346,279 $197,067,084 $193,506,732
Collateral Received for
Securities Lent -- 416,270,127 13,867,866 -- --
Cash 1,638,767 622,418 482,936 30 145,535
Foreign Currency (B) 137,690 -- -- -- --
Receivable For:
Securities Sold 212,014 -- -- 11,346,152 --
Dividends and Interest 83,325 113,748 1,301,758 2,506,931 773,560
Contributions by Feeder Funds 406,142 16,974,898 1,261,423 964,573 3,451,352
Futures Variation Margin -- -- -- 122,805 --
Unrealized Appreciation on
Foreign Currency Exchange
Contracts 499 -- -- 78,529 --
Deferred Organization Costs 13,590 13,590 13,680 13,680 13,696
----------- -------------- ------------ ------------ ------------
Total Assets 36,811,258 1,743,957,537 229,273,942 212,099,784 197,890,875
----------- -------------- ------------ ------------ ------------
LIABILITIES:
Written Options Outstanding, at
Value -- -- -- 101,094 --
Unrealized Depreciation on
Foreign Currency Exchange
Contracts 527 -- -- -- --
Unrealized Depreciation on Swap
Agreements -- -- -- 11,523 --
Payable Upon Return of
Securities Lent -- 416,270,127 13,867,866 -- --
Payable to Investment Manager 16,315 1,020,928 126,689 95,725 92,502
Payable For:
Securities Purchased 86,540 677,197 2,860,285 34,983,435 4,979,544
Withdrawals by Feeder Funds 69,487 1,586,530 309,614 774,416 1,707,236
Accrued Expenses and Other
Liabilities 58,913 120,093 90,955 34,103 27,803
----------- -------------- ------------ ------------ ------------
Total Liabilities 231,782 419,674,875 17,255,409 36,000,296 6,807,085
----------- -------------- ------------ ------------ ------------
NET ASSETS $36,579,476 $1,324,282,662 $212,018,533 $176,099,488 $191,083,790
=========== ============== ============ ============ ============
(A) Investments at Cost $30,115,237 $1,054,282,491 $198,820,585 $200,144,023 $193,506,732
=========== ============== ============ ============ ============
(B) Foreign Currency at Cost $ 137,340 $ -- $ -- $ -- $ --
=========== ============== ============ ============ ============
</TABLE>
See Notes to Financial Statements.
114
<PAGE> 118
AMERICAN SKANDIA MASTER TRUST
FOR THE YEAR ENDED OCTOBER 31, 1999
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT
ASMT ASMT ASMT PIMCO ASMT
T. ROWE PRICE JANUS INVESCO TOTAL 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 $ 60,171 $ 6,868,012 $ 2,442,083 $ 7,880,424 $5,021,465
Dividends 416,000 1,403,604 1,605,578 -- --
Foreign Taxes Withheld (64,691) (42,666) (74,758) (4,609) (62)
---------- ------------ ----------- ----------- ----------
Total Investment Income 411,480 8,228,950 3,972,903 7,875,815 5,021,403
---------- ------------ ----------- ----------- ----------
EXPENSES:
Advisory Fees 232,476 6,824,885 990,476 762,481 495,965
Shareholder Servicing Fees 6,000 6,000 6,000 6,000 6,000
Administration and Accounting Fees 37,501 357,931 132,215 117,980 78,842
Custodian Fees 59,431 79,510 21,313 33,628 18,438
Distribution Fees 3,142 66,845 46,415 -- --
Audit and Legal Fees 1,704 50,104 9,765 8,519 7,328
Organization Costs 4,940 4,940 4,936 4,936 4,931
Trustees' Fees 1,279 37,987 7,336 6,423 5,461
Miscellaneous Expenses 20,916 40,155 12,721 10,645 8,080
---------- ------------ ----------- ----------- ----------
Total Expenses 367,389 7,468,357 1,231,177 950,612 625,045
Less: Fees Paid Indirectly (3,142) (66,845) (46,415) -- --
---------- ------------ ----------- ----------- ----------
Net Expenses 364,247 7,401,512 1,184,762 950,612 625,045
---------- ------------ ----------- ----------- ----------
Net Investment Income (Loss) 47,233 827,438 2,788,141 6,925,203 4,396,358
---------- ------------ ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net Realized Gain (Loss) on:
Securities (400,387) (53,578,848) 3,669,326 (1,981,358) 2,986
Futures Contracts -- -- -- (1,282,084) --
Written Options Contracts -- -- -- 113,032 --
Swap Agreements -- -- -- (36,085) --
Foreign Currency Transactions (26,232) (16,491) -- (220,622) --
---------- ------------ ----------- ----------- ----------
Net Realized Gain (Loss) (426,619) (53,595,339) 3,669,326 (3,407,117) 2,986
---------- ------------ ----------- ----------- ----------
Net Change in Unrealized Appreciation
(Depreciation) on:
Securities 4,329,808 239,637,098 11,102,698 (3,448,432) --
Futures Contracts -- -- -- 18,128 --
Written Options Contracts -- -- -- 102,972 --
Swap Agreements -- -- -- (11,523) --
Translation of Assets and Liabilities
Denominated in Foreign Currencies (8,271) 28 -- 103,619 --
---------- ------------ ----------- ----------- ----------
Net Change in Unrealized Appreciation
(Depreciation) 4,321,537 239,637,126 11,102,698 (3,235,236) --
---------- ------------ ----------- ----------- ----------
Net Gain (Loss) on Investments 3,894,918 186,041,787 14,772,024 (6,642,353) 2,986
---------- ------------ ----------- ----------- ----------
Net Increase in Net Assets Resulting
from Operations $3,942,151 $186,869,225 $17,560,165 $ 282,850 $4,399,344
========== ============ =========== =========== ==========
</TABLE>
See Notes to Financial Statements.
115
<PAGE> 119
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT ASMT
T. ROWE PRICE JANUS
INTERNATIONAL EQUITY CAPITAL GROWTH
PORTFOLIO PORTFOLIO
----------------------------------- -----------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income (Loss) $ 47,233 $ (62,984) $ 827,438 $ 100,273
Net Realized Gain (Loss) on Investments (426,619) (150,133) (53,595,339) (5,429,678)
Net Change in Unrealized Appreciation
(Depreciation) on Investments 4,321,537 76,751 239,637,126 16,036,210
----------- ----------- -------------- ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 3,942,151 (136,366) 186,869,225 10,706,805
----------- ----------- -------------- ------------
CAPITAL TRANSACTIONS:
Contributions by Feeder Funds 31,129,167 17,837,166 1,150,697,636 159,785,442
Withdrawals by Feeder Funds (13,512,625) (6,177,388) (167,522,691) (24,236,532)
----------- ----------- -------------- ------------
Net Increase in Net Assets from Capital
Transactions 17,616,542 11,659,778 983,174,945 135,548,910
----------- ----------- -------------- ------------
Total Increase in Net Assets 21,558,693 11,523,412 1,170,044,170 146,255,715
NET ASSETS:
Beginning of Period 15,020,783 3,497,371 154,238,492 7,982,777
----------- ----------- -------------- ------------
End of Period $36,579,476 $15,020,783 $1,324,282,662 $154,238,492
=========== =========== ============== ============
</TABLE>
See Notes to Financial Statements.
116
<PAGE> 120
AMERICAN SKANDIA MASTER TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASMT ASMT ASMT
INVESCO PIMCO JPM
EQUITY INCOME TOTAL RETURN BOND MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
----------------------------------- ----------------------------------- ----------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998 1999
---------------- ---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income
(Loss) $ 2,788,141 $ 686,732 $ 6,925,203 $ 1,179,198 $ 4,396,358
Net Realized Gain
(Loss) on Investments 3,669,326 (510,100) (3,407,117) 668,243 2,986
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments 11,102,698 2,366,592 (3,235,236) 311,039 --
------------ ------------ ------------ ------------ -------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations 17,560,165 2,543,224 282,850 2,158,480 4,399,344
------------ ------------ ------------ ------------ -------------
CAPITAL TRANSACTIONS:
Contributions by Feeder
Funds 169,163,603 69,154,397 163,559,170 67,718,213 398,826,561
Withdrawals by Feeder
Funds (38,155,462) (14,750,075) (47,117,698) (15,526,070) (261,147,912)
------------ ------------ ------------ ------------ -------------
Net Increase in Net
Assets from Capital
Transactions 131,008,141 54,404,322 116,441,472 52,192,143 137,678,649
------------ ------------ ------------ ------------ -------------
Total Increase in
Net Assets 148,568,306 56,947,546 116,724,322 54,350,623 142,077,993
NET ASSETS:
Beginning of Period 63,450,227 6,502,681 59,375,166 5,024,543 49,005,797
------------ ------------ ------------ ------------ -------------
End of Period $212,018,533 $ 63,450,227 $176,099,488 $ 59,375,166 $ 191,083,790
============ ============ ============ ============ =============
<CAPTION>
ASMT
JPM
MONEY MARKET
PORTFOLIO
----------------
YEAR ENDED
OCTOBER 31,
1998
----------------
<S> <C>
FROM OPERATIONS:
Net Investment Income
(Loss) $ 785,810
Net Realized Gain
(Loss) on Investments (733)
Net Change in
Unrealized
Appreciation
(Depreciation) on
Investments --
------------
Net Increase (Decrease)
in Net Assets Resulting
from Operations 785,077
------------
CAPITAL TRANSACTIONS:
Contributions by Feeder
Funds 103,736,368
Withdrawals by Feeder
Funds (57,510,543)
------------
Net Increase in Net
Assets from Capital
Transactions 46,225,825
------------
Total Increase in
Net Assets 47,010,902
NET ASSETS:
Beginning of Period 1,994,895
------------
End of Period $ 49,005,797
============
</TABLE>
See Notes to Financial Statements.
117
<PAGE> 121
AMERICAN SKANDIA MASTER TRUST
SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio of Expenses to
Average Net Assets(4)
---------------------------
Year Net Assets at Portfolio Net Expenses Before Ratio of Net Investment
Ended End of Period Turnover Operating Fees Paid Income (Loss) to
October 31, (in 000s) Rate Expenses Indirectly* Average Net Assets(4)
----------- ------------- --------- --------- --------------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
ASMT T. ROWE PRICE
INTERNATIONAL EQUITY PORTFOLIO: 1999 $ 36,579 31% 1.57% 1.58% 0.20%
- --------------------------------
- --------------------------------
1998 15,021 20% 2.60% 2.60% (0.67%)
1997(1) 3,497 1% 6.26% 6.26% (3.78%)
ASMT JANUS
CAPITAL GROWTH PORTFOLIO: 1999 $1,324,283 47% 1.08% 1.09% 0.12%
- --------------------------------
- --------------------------------
1998 154,238 77% 1.27% 1.27% 0.17%
1997(1) 7,983 83% 2.79% 2.79% 0.69%
ASMT INVESCO
EQUITY INCOME PORTFOLIO: 1999 $ 212,019 66% 0.90% 0.93% 2.11%
- --------------------------------
- --------------------------------
1998 63,450 70% 1.13% 1.13% 2.11%
1997(2) 6,503 46% 2.66% 2.66% 2.39%
ASMT PIMCO
TOTAL RETURN BOND PORTFOLIO: 1999 $ 176,099 145% 0.81% 0.81% 5.90%
- --------------------------------
- --------------------------------
1998 59,375 418% 1.07% 1.07% 5.05%
1997(2) 5,025 93% 2.22% 2.22% 3.51%
ASMT JPM
MONEY MARKET PORTFOLIO: 1999 $ 191,084 N/A 0.63% 0.63% 4.43%
- --------------------------------
- --------------------------------
1998 49,006 N/A 0.72% 0.72% 4.69%
1997(3) 1,995 N/A 3.91% 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.
* Includes commissions received by American Skandia Marketing, Incorporated
under the Trust's Distribution Plan as described in Note 3 to the Financial
Statements.
See Notes to Financial Statements.
118
<PAGE> 122
AMERICAN SKANDIA MASTER TRUST
OCTOBER 31, 1999
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, 1999, 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 generally 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, 1999, there were no securities valued in
accordance with such procedures.
FOREIGN CURRENCY TRANSLATION -- Portfolio 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
119
<PAGE> 123
gains and losses include gains and losses from changes in the value of assets
and liabilities other than portfolio securities, resulting from changes in
exchange rates.
FOREIGN CURRENCY EXCHANGE CONTRACTS -- A foreign currency exchange contract
("FCEC") is a commitment to purchase or sell a specified amount of a foreign
currency at a specified future date, in exchange for either a specified amount
of another foreign currency or U.S. dollars.
FCECs are valued at the forward exchange rates applicable to the underlying
currencies, and changes in market value are recorded as unrealized gains and
losses until the contract settlement date.
Risks could arise from entering into FCECs if the 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.
FUTURES CONTRACTS AND OPTIONS -- 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 margin deposit, in cash or cash equivalents, equal
to a certain percentage of the contract amount. Subsequent payments (variation
margin) are made or received by the Portfolio 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 is 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 -- 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.
SWAP AGREEMENTS -- A swap agreement is a two-party contract under which an
agreement is made to exchange returns from predetermined investments or
instruments, including a particular interest rate,
120
<PAGE> 124
AMERICAN SKANDIA MASTER TRUST
foreign currency, or "basket" of securities representing a particular index. The
gross returns to be exchanged or "swapped" between the parties are calculated
based on a "notional amount", which, each business day, is valued to determine
each party's obligation under the contract. Fluctuations in value are recorded
as unrealized gains and losses during the term of the contract.
Commonly used swap agreements include interest rate caps, under which, in
return for a premium, one party agrees to make payments to the other to the
extent that interest rates exceed a specified rate or "cap"; interest rate
floors, under which, in return for a premium, one party agrees to make payments
to the other to the extent that interest rates fall below a specified level or
"floor"; and interest rate collars, under which a party sells a cap and
purchases a floor or vice versa.
Risks could arise from entering into swap agreements from the potential
inability of counterparties to meet the terms of their contracts, and from the
potential inability to enter into a closing transaction. It is possible that
developments in the swaps market, including potential governmental regulation,
could affect the Portfolio's ability to terminate existing swap agreements or to
realize amounts to be received under such agreements.
SECURITIES LOANS -- Each Portfolio may lend securities for the purpose of
realizing additional income. All securities loans are collateralized by cash or
securities issued or guaranteed by the U.S. Government or its agencies. The
value of the collateral is at least equal to the market value of the securities
lent. However, due to market fluctuations, the value of the securities lent may
exceed the value of the collateral. On the next business day, the collateral is
adjusted based on the prior day's market fluctuations and the current day's
lending activity.
Interest income from lending activity is determined by the amount of
interest earned on collateral, less any amounts payable to the borrowers of the
securities and the lending agent.
Lending securities involves certain risks, including the risk that the
Portfolio may be delayed or prevented from recovering the collateral if the
borrower fails to return the securities.
At October 31, 1999, securities lending activities are summarized as
follows:
<TABLE>
<CAPTION>
MARKET VALUE
OF SECURITIES MARKET VALUE INCOME FROM
PORTFOLIO ON LOAN OF COLLATERAL LENDING*
- ------------------------------------- ------------- ------------- -----------
<S> <C> <C> <C>
Janus Capital Growth $431,307,303 $416,270,127 $18,935
Equity Income 13,673,728 13,867,866 489
</TABLE>
* Income earned, for the period, is included in interest income on the Statement
of Operations.
DEFERRED ORGANIZATION COSTS -- The Trust bears all costs in connection with its
organization. All such costs are amortized on a straight-line basis over a
five-year period beginning on the date of the commencement of operations.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are
accounted for on the trade date. Realized gains and losses from securities sold
are recognized on the specific identification basis. Dividend income is recorded
on the ex-dividend date. Corporate actions, including dividends, on foreign
securities are recorded on the ex-dividend date or, if such information is not
available, as soon as
121
<PAGE> 125
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
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ADVISORY FEES -- 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.
SUB-ADVISORY FEES -- The Investment Manager pays each Sub-advisor a fee,
computed daily and paid monthly, based on an annual rate of .75%, .45%, .35%,
.25%, and .15% of the average daily net assets of the International Equity,
Capital Growth, Equity Income, Total Return Bond, and Money Market Portfolios,
respectively. The Sub-advisors for International Equity and Money Market are
currently voluntarily waiving a portion their fee payable by the Investment
Manager. The annual rates of the fees payable to the Sub-advisors for
International Equity and Money Market are reduced for Portfolio net assets in
excess of specified levels.
MANAGEMENT OF THE TRUST -- 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.
DISTRIBUTOR -- The Trust has adopted a Distribution Plan (the "Plan") under Rule
12b-1 of the Investment Company Act of 1940. The Plan permits American Skandia
Marketing, Incorporated ("ASMI") to receive brokerage commissions in connection
with purchases and sales of securities by the Portfolios, and to use these
commissions to promote the sale of shares of the American Skandia Advisor Funds,
Inc. Under the Plan, securities transactions for a Portfolio may be directed to
certain brokers for execution ("clearing brokers") who have agreed to pay part
of the brokerage commissions received on these transactions to ASMI for
"introducing" transactions to the clearing broker. In turn, ASMI uses the
brokerage commissions received as an introducing broker to pay various
distribution-related expenses, such as advertising, printing of sales materials,
and payments to dealers.
Commissions received by ASMI under the Plan are reflected in the cost of
securities purchased and the proceeds from the sale of securities. These
commissions are shown in the Statements of Operations as "Distribution Fees" and
a corresponding reduction "Fees Paid Indirectly". Net expenses of the Portfolios
are unaffected by these commissions. From July 27, 1999 to October 31, 1999,
commissions received by ASMI totaled $116,402.
4. TAX MATTERS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Portfolios are treated as partnerships for federal income tax purposes.
Accordingly, each investor in the Portfolios will be allocated its share of net
investment income and realized and
122
<PAGE> 126
AMERICAN SKANDIA MASTER TRUST
unrealized gains and losses from investment transactions. It is intended that
the Portfolios will be managed in such a way that an investor will be able to
satisfy the requirements of the Internal Revenue Code applicable to regulated
investment companies.
5. PORTFOLIO SECURITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Purchases and sales of securities, other than U.S. government securities
and short-term obligations, during the year ended October 31, 1999, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------- ------------
<S> <C> <C>
International Equity $ 23,830,177 $ 6,815,350
Equity Income 200,599,118 78,880,492
Capital Growth 1,020,183,736 263,359,740
Total Return Bond 216,015,652 97,378,650
</TABLE>
Purchases and sales of U.S. government securities, during the year ended
October 31, 1999, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------- ------------
<S> <C> <C>
Equity Income $ 7,565,293 $ 2,365,275
Total Return Bond 105,075,970 83,659,919
</TABLE>
At October 31, 1999, 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 $ 30,372,088 $ 4,979,038 $1,031,895 $ 3,947,143
Capital Growth 1,054,282,491 263,628,593 7,948,328 255,680,265
Equity Income 198,824,289 20,700,727 7,178,737 13,521,990
Total Return Bond 201,316,014 781,048 5,131,072 (4,350,024)
Money Market 193,506,732 -- -- --
</TABLE>
123
<PAGE> 127
6. WRITTEN OPTIONS TRANSACTIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Written options transactions, during the year ended October 31, 1999, were
as follows:
<TABLE>
<CAPTION>
TOTAL RETURN BOND
------------------------------
NUMBER OF
CONTRACTS PREMIUM
----------------- ---------
<S> <C> <C>
Balance at beginning of period -- $ --
Written 820 359,073
Expired (436) (113,032)
Exercised (70) (41,974)
Closed -- --
---- ---------
Balance at end of period 314 $ 204,067
==== =========
</TABLE>
At October 31, 1999, Total Return Bond had sufficient cash and/or
securities at least equal to the value of written options.
124
<PAGE> 128
AMERICAN SKANDIA MASTER TRUST
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 the 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, 1999,
the results of each of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended and the
supplemental data for each of the periods presented, in conformity with
accounting principles generally accepted in the United States. 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, 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, 1999 by correspondence with the custodians
and brokers, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 15, 1999
125
<PAGE> 129
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
[STAR GRAPHICS]
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:
PFPC Trust Company
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
Stradley, Ronon, Stevens & Young, LLP
Philadelphia, PA 19103
<PAGE> 130
[AMERICAN SKANDIA ADVISOR FUNDS 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 1099)
2336
