American Skandia Trust
Supplement dated August 26, 1998 to the Prospectus dated May 1, 1998
Bankers Trust Enhanced 500 Portfolio
In order for the Portfolio to maintain adequate available cash to meet
possible redemption requests while maintaining full exposure to the S&P 500, the
Portfolio's limitation on investing in securities index futures contracts and
related options will be increased from 20% to 50% effective November 16, 1998.
Accordingly, the first sentence of the section of the Prospectus
entitled "Investment Objectives and Policies -- Bankers Trust Enhanced 500
Portfolio -- Securities Index Futures and Related Options" (page 92) is revised
to read as follows:
The Portfolio may enter into securities index futures contracts and
related options provided that, at all times, margin deposits for
futures contracts and premiums on related options do not exceed 5% of
the Portfolio's assets and provided that the percentage of the
Portfolio's assets being used to cover its obligations under futures
and options does not exceed 50%.
Federated High Yield Portfolio
Effective immediately, Constantine J. Kartsonas joins Mark E. Durbiano
as a portfolio manager of the Federated High Yield Portfolio. Mr. Kartsonas
replaces Stefanie L. Bachhuber, who has resigned from Federated Investment
Counseling. Accordingly, the section of the prospectus entitled "Organization
and Management of the Trust -- Sub-advisors -- Federated Investment Counseling"
(page 114) is amended by deleting the second paragraph and replacing it with the
following:
Mark E. Durbiano and Constantine J. Kartsonas are primarily responsible
for the day-to-day management of the Federated High Yield Portfolio.
Mr. Durbiano, who has managed the Portfolio since it commenced
operations in 1994, joined Federated Investors in 1982 and has been a
Senior Vice President of an affiliate of Federated Investment since
January 1996. From 1988 to 1995, Mr. Durbiano was a Vice President of
an affiliate of Federated Investment. Mr. Kartsonas, who has co-managed
the Portfolio since August 1998, joined Federated Investors in 1994 as
an Investment Analyst and has been an Assistant Vice President of
Federated Investment since March 1997. From 1990 to 1993, he served as
an Operations Analyst at Lehman Brothers.
