<PAGE> 1
STAGECOACH VARIABLE ANNUITY(TM)
----------------------------
SEMI-ANNUAL REPORT
----------------------------
JUNE 30, 1995
----------------------------
NOT FDIC INSURED
<PAGE> 2
<TABLE>
<S> <C>
TABLE OF CONTENTS
Letter to Contract Holders..................................................................... 2
American Skandia Life Assurance Corporation
Variable Account B -- Class 1 Financial Statements........................................... 5
Life and Annuity Trust Financial Statements.................................................... 15
American Skandia Trust Financial Statements.................................................... 35
</TABLE>
This report has been prepared to provide information to owners of American
Skandia Life Assurance Corporation's Stagecoach Variable Annuity. If it is used
for any other purpose, it must be accompanied or preceded by a current
Stagecoach Variable Annuity prospectus, which discloses any charges and other
important information about the Account, together with the current applicable
prospectus for the Life & Annuity Trust and the American Skandia Trust.
The financial statements for the sub-accounts which invest in Portfolios of
American Skandia Trust reflect financial activity for the Stagecoach Variable
Annuity and other products that use the same sub-accounts.
VARIABLE ANNUITIES:
------------------------------------------------
are NOT FDIC insured
are NOT guaranteed by Wells Fargo Bank LOGO
are NOT deposits or obligations of the bank
involve investment risk, including possible loss of principal
1
<PAGE> 3
STAGECOACH VARIABLE ANNUITY SEMI-ANNUAL REPORT
TO OUR CONTRACT HOLDERS
The financial markets performed impressively during the first half of 1995,
in stark contrast to last year's disappointing results. Sharp declines in
longer-term interest rates touched off a rally in stocks and bonds and prompted
the Federal Reserve to cut interest rates for the first time in nearly three
years. The Federal funds target rate of 5.75% is just 0.25% below its most
recent peak in early July 1995, but the 6.50% yield on 30-year Treasury bonds
was well below its historical high of nearly 8.25%, reached in November 1994.
Last year's increase in interest rates, sudden slowdown in consumer spending,
and unwanted build-up of inventories left the economy perilously close to
recession. Economic growth averaged less than 2% during the first two quarters
of 1995, well below the 4.60% average over the same period in 1994.
The Bond Market
What a difference a year makes! Although 1995 was expected to be a better
year than 1994 for the bond market, few investors anticipated double-digit
performance by mid-year. During the first half of 1995, interest rates declined
0.80% to 1% for all maturities longer than one year. Declining rates benefit the
bond market because bond prices generally rise when interest rates fall.
The recent lowering of the Federal funds rate signaled the Federal
Reserve's intention to shift monetary policy from a relatively restrictive
stance to a more neutral one. This shift invites a comparison with June 1989,
which was the last time the Federal Reserve began to ease monetary policy.
During that easing cycle, the Federal funds rate was lowered by 6.75% -- from
9.75% to 3% -- in September of 1992. Although we do not anticipate another cycle
of that magnitude, we do not think the 0.25% easing on July 6 will be the last.
Current prospects for economic growth appear weaker than in 1989, as measured by
quarterly Gross Domestic Product and, equally important, by benign inflationary
pressures. Inflation as measured by the Consumer Price Index and the Employment
Cost Index (which reflects wage pressures) appears significantly lower than in
1989. Historically, the "real" Federal funds rate has averaged 1.75% to 2%. At
5.75%, the "real" rate is 2.50% above the inflation rate of 3.25%. A neutral
policy stance would imply a Federal funds rate between 5.00% and 5.25%.
The Stock Market
The first half of 1995 presented the best of all worlds for the U.S. stock
market. Economic growth and low inflation combined to create a favorable
environment in which to own domestic equities, and corporate profitability
remained strong. Lower long-term interest rates allowed valuation measures such
as price-earnings ratios to grow without reaching speculative levels.
Alternative investments, including foreign equities, seemed less enticing and
tipped asset allocation models in favor of U.S. stocks.
By mid-year the Dow Jones Industrial Average and S&P 500 Index were up over
18.50% (price return only). The Russell 2000 Index, which measures the
performance of smaller capitalization companies, was up 13.30%. The star
performers were found among technology-related sectors, namely communications
equipment and network providers, semiconductor manufacturers, and software
developers. At the other end of the spectrum, consumer-related stocks such as
specialty retailers, medical service providers, and leisure companies lagged
behind the general market trend.
Studies have repeatedly shown the pitfalls of trying to time the peaks and
valleys of the stock market. Wise investors stay focused on their long-term
goals of capital growth and future income generation. Concentrating on sectors
that show potential for sustainable long-term growth generally has yielded the
greatest rewards over time.
2
<PAGE> 4
The "Friendly" Environment Continues
Based on current market factors, we expect the stock and bond markets to
continue to benefit from lower interest rates for the remainder of 1995. Modest
growth and historically low inflation are expected to set the stage for further
interest rate declines over the next several months. The inflation premium on
bond yields remains above its long-term average, and recent encouraging news on
plans to reduce the federal deficit should have a soothing effect on investors.
Lower interest rates and an improved outlook for economic growth and corporate
earnings should help to bolster the stock market as well. We do not foresee a
recession but a sustained period of slow growth over the next six months. In
this environment, long-term rates could decline even further. We don't expect to
match the 1.25% decline in the first half of 1995, but rates should be in the
range of 6% to 6.75%. Again, with modest economic growth and low inflation, the
risk of interest rates rising substantially appears low.
A Commitment to Investment Quality
We believe a conservative, straightforward approach is the most effective
long-term investment strategy, and we offer a variety of investment options to
meet a broad range of investment goals. On the following pages you will find
reports from the investment advisors for each of the sub-account portfolios,
offering insight into individual portfolio performance, holdings, and other
helpful information.
We appreciate your participation in the Stagecoach Variable Annuity. We
will continue working diligently to help you realize your financial goals.
Sincerely,
Gordon C. Boronow
President & Chief Operating Officer
American Skandia Life Assurance Corporation
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)" are registered trademarks of
McGraw-Hill, Inc. The S&P 500 Index of stocks is an unmanaged index that tracks
the performance of 500 industrial, transportation, utility and financial
companies. "The Russell 2000" Index of stocks is an unmanaged index of 2000
companies with market values ranging from $25 to $275 million. "Dow Jones
Industrial Average" is a price weighted index comprised of the 30 largest, most
widely held stocks which are traded on the New York Stock Exchange.
3
<PAGE> 5
[INTENTIONALLY LEFT BLANK]
4
<PAGE> 6
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 1995 (UNAUDITED)
<TABLE>
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investment in mutual funds at market value (Note 2):
Life & Annuity Trust (LAT):
U.S. Government Allocation Portfolio--173,555 shares (cost $1,737,587)........................ $ 1,777,205
Asset Allocation Portfolio--1,178,416 shares (cost $11,947,748)............................... 13,068,636
Growth and Income Portfolio--397,097 shares (cost $4,254,359)................................. 4,729,424
Money Market Portfolio--1,783,558 shares (cost $1,783,558).................................... 1,783,558
American Skandia Trust (AST):
JanCap Growth Portfolio--23,422,036 shares (cost $269,394,398)................................ 317,837,032
T. Rowe Price International Equity Portfolio--13,172,621 shares (cost $129,352,410)........... 131,462,756
Founders Capital Appreciation Portfolio--3,706,655 shares (cost $39,553,449).................. 47,037,454
INVESCO Equity Income Portfolio--9,267,529 shares (cost $93,216,460).......................... 103,147,596
------------
TOTAL INVESTED ASSETS..................................................................... 620,843,661
Receivable from American Skandia Life Assurance Corp.................................................. 306,151
------------
TOTAL ASSETS.............................................................................. $621,149,812
============
LIABILITIES:
Payable to Life & Annuity Trust................................................................... $ 62,464
Payable to American Skandia Trust................................................................. 243,687
------------
TOTAL LIABILITIES......................................................................... $ 306,151
------------
</TABLE>
NET ASSETS:
<TABLE>
<CAPTION>
Unit
Contractowners' Equity Units Value
- ---------------------- ---------- ------
<S> <C> <C> <C>
LAT-U.S. Government Allocation....................................... 163,908 $10.84 $ 1,777,205
LAT-Asset Allocation................................................. 1,119,895 11.67 13,068,636
LAT-Growth and Income................................................ 394,023 12.00 4,729,424
LAT-Money Market..................................................... 171,773 10.38 1,783,558
AST-JanCap........................................................... 24,125,216 13.17 317,837,032
AST-T. Rowe Price International Equity............................... 13,406,210 9.81 131,462,756
AST-Founders Capital Appreciation.................................... 3,753,994 12.53 47,037,454
AST-INVESCO Equity Income............................................ 9,328,509 11.06 103,147,596
------------
TOTAL NET ASSETS................................................. $620,843,661
============
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 7
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Class 1 Sub-accounts Investing in:
---------------------------------------------------
LAT-U.S. Gov't LAT-Asset
Total Allocation Allocation
----------- -------------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends........................................................... $ 3,204,150 $ 41,912 $ 307,222
Expenses
Mortality and Expense Risks Charges and Administrative Fees
(Note 4).......................................................... (3,813,158) (8,872) (71,928)
----------- -------- ----------
NET INVESTMENT INCOME (LOSS)............................................ (609,008) 33,040 235,294
----------- -------- ----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds From Sales................................................. 39,221,533 84,580 104,505
Cost of Securities Sold............................................. 36,896,644 84,136 101,669
----------- -------- ----------
Net Gain (Loss)................................................... 2,324,889 444 2,836
Capital Gain Distributions Received................................. 243,203 0 0
----------- -------- ----------
NET REALIZED GAIN (LOSS)................................................ 2,568,092 444 2,836
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period................................................. (4,009,538) (28,982) (159,523)
End of Period....................................................... 69,603,692 39,618 1,120,888
----------- -------- ----------
NET UNREALIZED GAIN..................................................... 73,613,230 68,600 1,280,411
----------- -------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $75,572,314 $102,084 $1,518,541
=========== ========= ==========
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
6
<PAGE> 8
<TABLE>
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Class 1 Sub-accounts Investing In:
------------------------------------------------------------------------------------------------------
AST-T. Rowe AST-Founders
LAT-Growth and LAT-Money AST-JanCap International Capital AST-INVESCO
Income Market Growth Equity Appreciation Equity Income
-------------- ----------- ------------ ------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
$ 41,146 $ 35,921 $ 1,353,851 $ 118,043 $ 269,670 $ 1,036,385
(22,787) (9,338) (1,999,944) (845,711) (261,462) (593,116)
-------- ---------- ----------- ----------- ---------- -----------
18,359 26,583 (646,093) (727,668) 8,208 443,269
-------- ---------- ----------- ----------- ---------- -----------
51,348 1,452,141 23,304,920 9,997,191 3,085,071 1,141,777
46,670 1,452,141 20,897,459 10,580,939 2,645,501 1,088,129
-------- ---------- ----------- ---------- ---------- -----------
4,678 0 2,407,461 (583,748) 439,570 53,648
0 0 0 243,203 0 0
-------- ---------- ----------- ----------- ---------- -----------
4,678 0 2,407,461 (340,545) 439,570 53,648
10,502 0 (1,818,595) (2,989,688) 1,868,641 (891,893)
475,065 0 48,442,634 2,110,346 7,484,005 9,931,136
-------- ---------- ----------- ----------- ---------- -----------
464,563 0 50,261,229 5,100,034 5,615,364 10,823,029
-------- ---------- ----------- ----------- ---------- -----------
$487,600 $ 26,583 $52,022,597 $ 4,031,821 $6,063,142 $11,319,946
======== ========== =========== =========== ========== ===========
- ---------------------------------------------------------------------------------------------------------
7
</TABLE>
<PAGE> 9
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Class 1 Sub-accounts Investing In:
--------------------------------------
Total
--------------------------------------
Period Ended
Jun. 30, Year Ended
1995 Dec. 31, 1994
------------ -------------
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................................................ $ (609,008) $ (3,723,344)
Net Realized Gain (Loss).................................................... 2,568,092 1,517,815
Net Unrealized Gain (Loss) On Investments................................... 73,613,230 (13,285,937)
------------ ------------
Net Increase (Decrease) In Net Assets Resulting From
Operations.............................................................. 75,572,314 (15,491,466)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits.......................................... 89,095,977 231,066,974
Net Transfers Between Sub-accounts.......................................... 15,129,148 92,582,872
Surrenders.................................................................. (11,980,386) (12,798,915)
------------ ------------
Net Increase (Decrease) In Net Assets Resulting From
Capital Share Transactions.............................................. 92,244,739 310,850,931
------------ ------------
TOTAL INCREASE IN NET ASSETS.................................................... 167,817,053 295,359,465
NET ASSETS:
Beginning of Period............................................................. 453,026,608 157,667,143
------------ ------------
End of Period................................................................... $620,843,661 $453,026,608
============ ============
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
*Date Operations Commenced
8
<PAGE> 10
<TABLE>
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Class 1 Sub-accounts Investing In:
----------------------------------------------------------------------------------------------------
LAT - U.S. Gov't LAT - Asset LAT - Growth
Allocation Allocation and Income
------------------------------ ------------------------------ ------------------------------
Period Ended Period Ended Period Ended
Jun. 30, Apr. 26* Thru Jun. 30, Apr. 15* Thru Jun. 30, Apr. 15* Thru
1995 Dec. 31, 1994 1995 Dec. 31, 1994 1995 Dec. 31, 1994
------------ ------------- ------------ ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
$ 33,040 $ 20,797 $ 235,294 $ 142,892 $ 18,359 $ 10,873
444 (502) 2,836 71,651 4,678 1,269
68,600 (28,982) 1,280,411 (159,523) 464,563 10,502
---------- -------- ----------- ---------- ---------- ----------
102,084 (8,687) 1,518,541 55,020 487,600 22,644
---------- -------- ----------- ---------- ---------- ----------
849,703 841,458 3,817,114 7,601,144 2,108,409 2,099,892
20,487 8,203 516,461 135,954 98,581 21,913
(36,155) 112 (223,207) (352,391) (75,705) (33,910)
---------- -------- ----------- ---------- ---------- ----------
834,035 849,773 4,110,368 7,384,707 2,131,285 2,087,895
---------- -------- ----------- ---------- ---------- ----------
936,119 841,086 5,628,909 7,439,727 2,618,885 2,110,539
841,086 0 7,439,727 0 2,110,539 0
---------- -------- ----------- ---------- ---------- ----------
$1,777,205 $841,086 $13,068,636 $7,439,727 $4,729,424 $2,110,539
========== ======== =========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 11
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
(UNAUDITED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Class 1 Sub-accounts Investing In:
-------------------------------------------------------------------
LAT-Money
Market AST
----------------------------- JanCap Growth
Period May 19* -------------------------------
Ended Thru Period Ended Year Ended
Jun. 30, Dec. 31, Jun. 30, Dec. 31,
1995 1994 1995 1994
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)...................... $ 26,583 $ 16,270 $ (646,093) $ (2,491,101)
Net Realized Gain (Loss).......................... 0 4 2,407,461 1,587,144
Net Unrealized Gain (Loss) On Investments......... 0 0 50,261,229 (11,094,994)
----------- ----------- ------------ ------------
Net Increase (Decrease) In Net Assets Resulting
From Operations............................... 26,583 16,274 52,022,597 (11,998,951)
----------- ----------- ------------ ------------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................ 1,939,452 3,111,318 28,920,268 89,693,814
Net Transfers Between Sub-accounts................ (1,192,834) (1,057,200) (824,151) 16,413,857
Surrenders........................................ (455,493) (604,542) (6,215,678) (7,841,867)
----------- ----------- ------------ ------------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions............... 291,125 1,449,576 21,880,439 98,265,804
----------- ----------- ------------ ------------
TOTAL INCREASE IN NET ASSETS.......................... 317,708 1,465,850 73,903,036 86,266,853
NET ASSETS:
Beginning of Period............................... 1,465,850 0 243,933,996 157,667,143
----------- ----------- ------------ ------------
End of Period..................................... $ 1,783,558 $ 1,465,850 $317,837,032 $243,933,996
=========== =========== ============ ============
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
* Date Operations Commenced.
10
<PAGE> 12
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Class 1 Sub-accounts Investing In:
-------------------------------------------------------------------------------------------------------
AST-T. Rowe
Price International AST-Founders Capital AST-INVESCO
Equity Appreciation Equity Income
------------------------------- ------------------------------- -------------------------------
Period Ended Period Ended Period Ended
Jun. 30, Jan. 3* Thru Jun. 30, Jan. 5* Thru Jun. 30, Jan. 3* Thru
1995 Dec. 31, 1994 1995 Dec. 31, 1994 1995 Dec. 31, 1994
------------ -------------- ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
$ (727,668) $ (841,016) $ 8,208 $ (153,802) $ 443,269 $ (428,257)
(340,545) (206,344) 439,570 66,235 53,648 (1,642)
5,100,034 (2,989,688) 5,615,364 1,868,641 10,823,029 (891,893)
------------ ------------ ----------- ------------ ------------ -----------
4,031,821 (4,037,048) 6,063,142 1,781,074 11,319,946 (1,321,792)
------------ ------------ ----------- ------------ ------------ -----------
21,220,277 65,204,510 10,146,417 14,103,413 20,094,337 48,411,425
2,525,416 46,877,402 4,039,601 11,996,947 9,945,587 18,185,796
(2,246,883) (2,112,739) (738,264) (354,876) (1,989,001) (1,498,702)
------------ ------------ ----------- ------------ ------------ -----------
21,498,810 109,969,173 13,447,754 25,745,484 28,050,923 65,098,519
------------ ------------ ----------- ------------ ------------ -----------
25,530,631 105,932,125 19,510,896 27,526,558 39,370,869 63,776,727
105,932,125 0 27,526,558 0 63,776,727 0
------------ ------------ ----------- ------------ ------------ -----------
$131,462,756 $105,932,125 $47,037,454 $ 27,526,558 $103,147,596 $63,776,727
============ ============ =========== ============ ============ ===========
- -----------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 13
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
American Skandia Life Assurance Corporation Variable Account B -- Class 1 (the
"Account") is a separate investment account of American Skandia Life Assurance
Corporation ("American Skandia"). The Account is registered with the SEC under
the Investment Company Act of 1940 as a unit investment trust. The Account
commenced operations September 20, 1988.
As of June 30, 1995 the Account consisted of forty-eight sub-accounts. These
financial statements report on the eight sub-accounts offered in American
Skandia Life's Stagecoach Variable Annuity. Each of the eight sub-accounts
invests only in a single corresponding portfolio of either the Life & Annuity
Trust, or the American Skandia Trust. Wells Fargo Bank N.A. is the investment
manager for the Life & Annuity Trust, while Wells Fargo Nikko Investment
Advisors serves as a sub-advisor for the U.S. Government Allocation Fund and
Asset Allocation Fund. American Skandia Investment Services, Incorporated is the
investment manager for American Skandia Trust, while Janus Capital Corporation,
Rowe-Price Fleming International, Inc., Founders Asset Management, Inc. and
INVESCO Trust Company are the sub-advisors. The investment advisors are paid
fees for their services by the respective Trusts.
2. VALUATION OF INVESTMENTS
The market value of the investments in the sub-accounts is based on the net
asset values of the Trust shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses on sales of
investments are determined on a first-in first-out basis.
3. INCOME TAXES
American Skandia does not expect to incur any Federal income tax liability on
earnings, or realized capital gains attributable to the Account, therefore, no
charges for Federal income taxes are currently deducted from the Account. If
American Skandia incurs income taxes attributable to the Account, or determines
that such taxes will be incurred, it may make a charge for such taxes against
the Account.
Under current laws, American Skandia may incur state and local income taxes (in
addition to premium tax) in several states. The company does not anticipate that
these will be significant. However, American Skandia may make charges to the
Account in the event that the amount of these taxes change.
4. CONTRACT CHARGES
The following contract charges are paid to American Skandia:
Mortality and Expense Risk Charges -- Charged daily against the Account at an
annual rate of 1.25% of the net assets.
Administrative Fees -- Charged daily against the Account at an annual rate of
.15% of the net assets. A maintenance fee of $30 is deducted at the end of each
contract year and on surrender.
Contingent Deferred Sales Charges are computed as set forth in the Stagecoach
Variable Annuity prospectus. These charges may be imposed on the full, or
partial surrender of certain contracts. There is no contingent deferred sales
charge if all premiums were received at least seven complete years prior to the
date of the full or partial surrender.
12
<PAGE> 14
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
5. CHANGES IN THE UNITS OUTSTANDING
Class 1 Sub-accounts Investing In:
-----------------------------------------------------------
LAT - U.S. Gov't LAT - Asset
Allocation Allocation
---------------------------- ----------------------------
Period Ended Apr. 26* Thru Period Ended Apr. 15* Thru
Jun. 30, 1995 Dec. 31, 1994 Jun. 30, 1995 Dec. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period.................... 84,609 0 743,176 0
Units Purchased.............................................. 78,959 83,844 323,007 753,432
Units Transferred Between Sub-accounts....................... 3,776 821 68,624 24,810
Units Surrendered............................................ (3,436) (56) (14,912) (35,066)
---------- ---------- ---------- ----------
Units Outstanding End of the Period.......................... 163,908 84,609 1,119,895 743,176
========== ========== ========== ==========
<CAPTION>
Class 1 Sub-accounts Investing In:
-----------------------------------------------------------
LAT - Growth LAT - Money
and Income Market
---------------------------- ----------------------------
Period Ended Apr. 15* Thru Period Ended May 19* Thru
Jun. 30, 1995 Dec. 31, 1994 Jun. 30, 1995 Dec. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period.................... 204,067 0 144,050 0
Units Purchased.............................................. 174,593 205,260 162,058 308,444
Units Transferred Between Sub-accounts....................... 22,156 2,113 (133,085) (139,226)
Units Surrendered............................................ (6,793) (3,306) (1,250) (25,168)
---------- ---------- ---------- ----------
Units Outstanding End of the Period.......................... 394,023 204,067 171,773 144,050
========== ========== ========== ==========
<CAPTION>
Class 1 Sub-accounts Investing In:
-----------------------------------------------------------
AST - T. Rowe Price
AST - JanCap Growth International Equity
---------------------------- ----------------------------
Period Ended Year Ended Period Ended Jan. 3* Thru
Jun. 30, 1995 Dec. 31, 1994 Jun. 30, 1995 Dec 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period.................... 22,354,170 13,603,637 11,166,758 0
Units Purchased.............................................. 2,212,934 7,976,529 2,023,805 6,643,509
Units Transferred Between Sub-accounts....................... (13,412) 1,497,592 411,161 4,744,934
Units Surrendered............................................ (428,476) (723,588) (195,514) (221,685)
---------- ---------- ---------- ----------
Units Outstanding End of the Period.......................... 24,125,216 22,354,170 13,406,210 11,166,758
========== ========== ========== ==========
<CAPTION>
Class 1 Sub-accounts Investing In:
-----------------------------------------------------------
AST - Founders AST - INVESCO
Cap'l Appreciation Equity Income
---------------------------- ----------------------------
Period Ended Jan. 5* Thru Period Ended Jan. 3* Thru
Jun. 30, 1995 Dec. 31, 1994 Jun. 30, 1995 Dec. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period.................... 2,575,105 0 6,633,333 0
Units Purchased.............................................. 804,659 1,412,806 1,767,454 4,940,630
Units Transferred Between Sub-accounts....................... 430,253 1,198,628 1,089,772 1,851,061
Units Surrendered............................................ (56,023) (36,329) (162,050) (158,358)
---------- ---------- ---------- ----------
Units Outstanding End of the Period.......................... 3,753,994 2,575,105 9,328,509 6,633,333
========== ========== ========== ==========
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Date Operations Commenced.
13
<PAGE> 15
[INTENTIONALLY LEFT BLANK]
14
<PAGE> 16
LIFE & ANNUITY TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1995
(UNAUDITED)
ASSET ALLOCATION FUND
GROWTH AND INCOME FUND
MONEY MARKET FUND
U.S. GOVERNMENT ALLOCATION FUND
15
<PAGE> 17
LIFE & ANNUITY TRUST ASSET ALLOCATION PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<S> <C> <C> <C> <C> <C>
U.S. TREASURY BONDS -- 20.66 %
$ 100,000 U.S. Treasury Bonds 7.13% 02/15/23 $ 105,562
200,000 U.S. Treasury Bonds 7.25 05/15/16 212,937
200,000 U.S. Treasury Bonds 7.25 08/15/22 213,625
100,000 U.S. Treasury Bonds 7.63 02/15/25 112,812
300,000 U.S. Treasury Bonds 7.88 02/15/21 341,625
300,000 U.S. Treasury Bonds 8.00 11/15/21 346,688
200,000 U.S. Treasury Bonds 8.75 05/15/17 246,687
400,000 U.S. Treasury Bonds 8.75 08/15/20 497,250
400,000 U.S. Treasury Bonds 8.88 02/15/19 501,250
100,000 U.S. Treasury Bonds 9.00 11/15/18 126,688
-----------
TOTAL U.S. TREASURY BONDS $ 2,705,124
(Cost $2,428,083)
U.S. TREASURY BILLS -- 78.77 %
$ 486,000 U.S. Treasury Bills + 5.19%* 07/06/95 $ 485,564
582,000 U.S. Treasury Bills + 5.25* 07/27/95 579,659
653,000 U.S. Treasury Bills + 5.42* 08/10/95 649,007
1,074,000 U.S. Treasury Bills + 5.48* 08/24/95 1,065,524
327,000 U.S. Treasury Bills + 5.49* 08/17/95 324,693
2,000,000 U.S. Treasury Bills + 5.53* 08/31/95 1,982,462
4,675,000 U.S. Treasury Bills + 5.54* 09/07/95 4,628,713
584,000 U.S. Treasury Bills 5.56* 09/21/95 577,004
22,000 U.S. Treasury Bills 5.58* 09/28/95 21,711
-----------
TOTAL U.S. TREASURY BILLS $10,314,337
(Cost $10,310,265)
TOTAL INVESTMENTS IN SECURITIES
(Cost $12,738,347)** (Notes 1 & 3) 99.43% $13,019,461
Other Assets and Liabilities, Net 0.57 74,630
------ -----------
TOTAL NET ASSETS 100.00% $13,094,091
====== ===========
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ These U.S. Treasury Bills are held in segregated accounts in connection with
the Fund's holdings of S&P 500 futures contracts. See Note 1.
* Yield to maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $281,171
Gross Unrealized Depreciation (57)
--------
NET UNREALIZED APPRECIATION $281,114
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE> 18
LIFE & ANNUITY TRUST GROWTH AND INCOME PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<S> <C> <C> <C>
COMMON STOCKS -- 90.99 %
ADVERTISING -- 1.53 %
1,200 Omnicom Group $ 60,831 $ 72,750
APPLIANCES AND FURNITURE -- 1.34 %
2,500 Heilig-Meyers Co $ 57,297 $ 63,750
AUTOMOBILE & RELATED -- 6.39 %
2,100 Danaher Corp $ 56,334 $ 63,525
1,900 Eaton Corp 97,648 110,437
1,500 General Motors Corp 69,245 70,312
1,450 Goodyear Tire & Rubber Co 51,016 59,812
-------- ----------
$ 274,243 $ 304,086
BASIC INDUSTRIES -- 7.76 %
1,000 DuPont (E I) de Nemours $ 62,330 $ 68,750
1,700 Grace (W R) & Co 93,296 104,337
4,800 J&L Specialty Steel Inc 84,129 92,400
600 Monsanto Co 45,026 54,075
1,000 Scott Paper Co 49,576 49,500
-------- ----------
$ 334,357 $ 369,062
BUILDING MATERIALS & SERVICES -- 1.50 %
2,000 Sherwin Williams Co $ 64,867 $ 71,250
COMPUTER SOFTWARE -- 0.85 %
800 Cisco Systems Inc + $ 27,956 $ 40,450
COMPUTER SYSTEMS -- 1.33 %
1,400 Compaq Computer Corp + $ 52,716 $ 63,525
CONGLOMERATES -- 3.48 %
1,800 Harsco Corp $ 78,484 $ 94,950
600 ITT Corp 57,982 70,500
-------- ----------
$ 136,466 $ 165,450
ELECTRICAL EQUIPMENT -- 9.32 %
1,600 AMP Inc $ 58,514 $ 67,600
2,000 Honeywell Inc 81,910 86,250
1,500 Motorola Inc 89,283 100,687
1,400 Nokia Corp ADR Class A 56,183 83,475
900 Xerox Corp 96,208 105,525
-------- ----------
$ 382,098 $ 443,537
17
</TABLE>
<PAGE> 19
LIFE & ANNUITY TRUST GROWTH AND INCOME PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<S> <C> <C> <C>
ELECTRONIC SEMICONDUCTORS -- 2.13 %
1,600 Intel Corp $ 48,975 $ 101,300
ENERGY & RELATED -- 11.45 %
1,800 Anadarko Petroleum Corp $ 75,092 $ 77,625
1,000 Mobil Corp 91,051 96,000
4,000 Occidental Petroleum Corp 91,600 91,500
3,380 Sonat Inc 103,031 103,090
3,500 Ultramar Corp 88,823 88,375
3,200 Unocal Corp 90,380 88,400
-------- ----------
$ 539,977 $ 544,990
FINANCE & RELATED -- 15.44 %
1,500 BankAmerica Corp $ 74,045 $ 78,938
1,300 Citicorp 57,417 75,238
1,000 Federal National Mortgage Association 82,044 94,375
1,300 Glimcher Realty Trust 26,566 26,975
3,300 Household International Inc 134,166 163,350
6,600 Mercury Financial Corp 93,106 127,050
3,000 Mid Atlantic Medical Services + 56,492 55,500
1,000 Student Loan Marketing Association 41,366 46,875
3,600 Westpac Banking Corp ADR 58,830 66,150
-------- ----------
$ 624,032 $ 734,451
FOOD & RELATED -- 3.58 %
2,000 Heinz (H J) Co $ 87,684 $ 88,750
1,100 Philip Morris Co Inc 65,472 81,813
-------- ----------
$ 153,156 $ 170,563
GENERAL BUSINESS & RELATED -- 3.83 %
1,300 Alco Standard Corp $ 89,307 $ 103,838
2,200 Loewen Group Inc 62,931 78,375
-------- ----------
$ 152,238 $ 182,213
HOSPITAL & MEDICAL SUPPLIES -- 1.68 %
1,800 Forest Labs Inc Class A + $ 83,479 $ 79,875
MANUFACTURING PROCESSING -- 3.63 %
1,700 Allied Signal Inc $ 60,369 $ 75,650
1,600 Eastman Kodak Co 85,106 97,000
-------- ----------
$ 145,475 $ 172,650
MATERIAL MANUFACTURING -- 1.93 %
1,700 Tyco International Inc $ 84,177 $ 91,800
</TABLE>
18
<PAGE> 20
LIFE & ANNUITY TRUST GROWTH AND INCOME PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
SHARES SECURITY NAME COST VALUE
<S> <C> <C> <C>
PHARMACEUTICALS -- 2.36 %
1,300 Warner Lambert Co $ 101,308 $ 112,288
RETAIL STORES -- 5.63 %
2,000 Gap Inc 70,160 69,750
3,200 Lowe's Co Inc 104,490 95,600
4,000 Rite Aid Corp 96,314 102,500
-------- ----------
$ 270,964 $ 267,850
TELECOMMUNICATIONS -- 5.83 %
2,600 Alltel Corp $ 70,075 $ 65,975
4,000 Century Telephone Enterprise 115,768 113,500
5,000 Comsat Corp 99,985 98,125
-------- ----------
$ 285,828 $ 277,600
TOTAL COMMON STOCKS $3,880,440 $4,329,440
PREFERRED STOCKS -- 1.76 %
AUTOMOBILE & RELATED -- 1.43 %
700 Ford Motor Co Series A Convertible $ 62,883 $ 67,987
ENERGY & RELATED -- 0.33 %
600 Atlantic Richfield Co Convertible until 9/15/1997 $ 15,186 $ 15,525
-------- ----------
TOTAL PREFERRED STOCKS $ 78,069 $ 83,512
19
</TABLE>
<PAGE> 21
LIFE & ANNUITY TRUST GROWTH AND INCOME PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<S> <C> <C> <C> <C> <C>
SHORT-TERM INSTRUMENTS -- 11.49 %
U.S. TREASURY BILLS -- 7.27 %
$ 350,000 U.S. Treasury Bills 5.56%* 09/21/95 $ 345,769
REPURCHASE AGREEMENTS -- 4.22 %
$ 201,000 Goldman Sachs Pooled Repurchase 6.10% 07/03/95 $ 201,000
Agreement 102% Collateralized by
U.S. Government Securities
TOTAL SHORT-TERM INSTRUMENTS $ 546,769
(Cost $546,704)
TOTAL INVESTMENTS IN SECURITIES
(Cost $4,505,213)** (Notes 1 & 3) 104.24% $4,959,721
Other Assets and Liabilities, Net (4.24) (201,544)
------ ----------
TOTAL NET ASSETS 100.00% $4,758,177
====== ==========
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Non-income earning securities.
* Yield to maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $491,310
Gross Unrealized Depreciation (36,802)
--------
NET UNREALIZED APPRECIATION $454,508
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE> 22
LIFE & ANNUITY TRUST MONEY MARKET PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<S> <C> <C> <C> <C> <C>
U.S. TREASURY BILLS -- 97.85 %
$ 560,000 U.S. Treasury Bills 5.31%* 08/03/95 $ 557,101
1,125,000 U.S. Treasury Bills 5.48* 08/24/95 1,115,650
100,000 U.S. Treasury Bills 5.58* 09/28/95 98,656
----------
TOTAL U.S. TREASURY BILLS $1,771,407
REPURCHASE AGREEMENTS -- 3.15 %
$ 57,000 Goldman Sachs Pooled Repurchase 6.10% 07/03/95 $ 57,000
Agreement -- 102% Collateralized by
U.S. Government Securities
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,828,407)** (Note 1) 101.00% $1,828,407
Other Assets and Liabilities, Net (1.00) (18,047)
------ ----------
TOTAL NET ASSETS 100.00% $1,810,360
====== ==========
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Yield to maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes.
The accompanying notes are an integral part of these financial statements.
21
<PAGE> 23
LIFE & ANNUITY TRUST U.S. GOVERNMENT ALLOCATION PORTFOLIO--JUNE 30, 1995
PORTFOLIO OF INVESTMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
INTEREST MATURITY
PRINCIPAL SECURITY NAME RATE DATE VALUE
<S> <C> <C> <C> <C> <C>
U.S. TREASURY SECURITIES -- 36.54 %
U.S. TREASURY BONDS -- 24.27 %
$ 100,000 U.S. Treasury Bonds 7.50% 11/15/24 $ 110,750
150,000 U.S. Treasury Bonds 9.00 11/15/18 190,031
100,000 U.S. Treasury Bonds 13.38 08/15/01 137,031
---------
$ 437,812
U.S. TREASURY NOTES -- 12.27 %
$ 100,000 U.S. Treasury Notes 7.88% 08/15/01 $ 109,156
100,000 U.S. Treasury Notes 8.88 05/15/00 112,188
---------
$ 221,344
TOTAL U.S. TREASURY SECURITIES $ 659,156
(Cost $629,777)
SHORT-TERM INSTRUMENTS -- 63.72 %
U.S. TREASURY BILLS -- 63.72 %
$ 61,000 U.S. Treasury Bills 5.19%* 07/06/95 $ 60,945
185,000 U.S. Treasury Bills 5.25* 07/27/95 184,256
207,000 U.S. Treasury Bills 5.42* 08/10/95 205,734
99,000 U.S. Treasury Bills 5.48* 08/24/95 98,219
67,000 U.S. Treasury Bills 5.49* 08/17/95 66,528
102,000 U.S. Treasury Bills 5.54* 09/07/95 100,990
438,000 U.S. Treasury Bills 5.56* 09/21/95 432,753
---------
$1,149,425
TOTAL SHORT-TERM INSTRUMENTS $1,149,425
(Cost $1,149,179)
TOTAL INVESTMENTS IN SECURITIES
(Cost $1,778,956)** (Notes 1 & 3) 100.26% $1,808,581
Other Assets and Liabilities, Net (0.26) (4,653)
------ ----------
TOTAL NET ASSETS 100.00% $1,803,928
====== ==========
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Yield to maturity.
** Cost for federal income tax purposes is the same as for financial statement
purposes and net unrealized appreciation consists of:
<TABLE>
<S> <C>
Gross Unrealized Appreciation $29,632
Gross Unrealized Depreciation (7)
--------
NET UNREALIZED APPRECIATION $29,625
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE> 24
[THIS PAGE INTENTIONALLY LEFT BLANK]
23
<PAGE> 25
LIFE & ANNUITY TRUST
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
U.S.
Asset Growth and Money Government
Allocation Income Market Allocation
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments:
In securities, at market value $13,019,461 $4,959,721 $1,828,407 $1,808,581
Cash 617 425 575 3,629
Receivables:
Dividends and interest 54,653 8,129 10 11,799
Due from administrator (Note 2) 224 0 1,527 1,385
Fund shares sold 213,369 35,817 9,503 13,196
Organization expenses, net of amortization 39,159 39,582 40,468 39,811
Prepaid expenses 13,198 7,333 3,536 3,514
TOTAL ASSETS 13,340,681 5,051,007 1,884,026 1,881,915
LIABILITIES
Variation margin of financial futures contracts 13,900 0 0 0
Payables:
Investment securities purchased 0 195,183 0 0
Distribution to shareholders 167,821 25,336 7,628 8,636
Organizational costs 52,120 52,120 52,120 52,120
Due to administrator 4,419 13,070 265 96
Due to advisor 0 4,951 0 0
Accrued expenses 8,330 2,170 13,653 17,135
TOTAL LIABILITIES 246,590 292,830 73,666 77,987
NET ASSETS $13,094,091 $4,758,177 $1,810,360 $1,803,928
Net assets consist of:
Paid-in capital $11,974,182 $4,274,087 $1,809,962 $1,764,554
Undistributed net realized gain on investments 628,070 29,582 398 9,749
Net unrealized appreciation of futures contracts 210,725 0 0 0
Net unrealized appreciation of investments 281,114 454,508 0 29,625
NET ASSETS $13,094,091 $4,758,177 $1,810,360 $1,803,928
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE (NOTE 4):
Net assets $13,094,091 $4,758,177 $1,810,360 $1,803,928
Shares outstanding 1,181,092 399,660 1,809,963 176,248
Net asset value and offering price $11.09 $11.91 $1.00 $10.24
In securities, at identified cost (Note 3) $12,738,347 $4,505,213 $1,828,407 $1,778,956
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<PAGE> 26
LIFE & ANNUITY TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Growth U.S.
Asset and Money Government
Allocation Income Market Allocation
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 0 $ 36,972 $ 0 $ 0
Interest 320,981 9,071 38,245 44,873
TOTAL INCOME 320,981 46,043 38,245 44,873
EXPENSES (NOTE 2):
Advisory fees 29,274 9,432 3,004 3,672
Custody fees 0 3,002 1,004 0
Distribution fees 1,476 633 250 184
Portfolio accounting fees 0 12,974 12,369 0
Administration fees 2,501 787 334 306
Amortization of organization expenses 5,169 5,169 5,169 5,169
Legal and audit 11,658 11,406 11,406 11,406
Registration fees 0 755 0 0
Directors fees 5,579 5,579 5,579 5,579
Other 126 0 212 212
TOTAL EXPENSES 55,783 49,737 39,327 26,528
Less: Waived Fees and Reimbursed Expenses (Note 2) (42,794) (45,153) (37,711) (24,452)
Net expenses 12,989 4,584 1,616 2,076
NET INVESTMENT INCOME 307,992 41,459 36,629 42,797
REALIZED AND
UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on sale of investments 718,180 36,472 398 26,975
Net unrealized appreciation of futures contracts 210,725 0 0 0
Net unrealized appreciation of investments 355,110 435,357 0 43,516
NET GAIN ON INVESTMENTS 1,284,015 471,829 398 70,491
NET INCREASE
IN NET ASSETS RESULTING
FROM OPERATIONS $1,592,007 $513,288 $37,027 $113,288
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE> 27
LIFE & ANNUITY TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Asset Allocation Fund Growth and Income Fund
------------------------------- ---------------------------------
(Unaudited) From (Unaudited) From
Six Months Inception Six Months Inception
Ended on April 15, 1994 Ended on April 12, 1994
June 30, 1995 to Dec. 31, 1994 June 30, 1995 to Dec. 31, 1994
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
Operations:
Net investment income $307,992 $184,556 $41,459 $20,607
Net realized gain (loss) on sale of investments 718,180 (15,774) 36,472 (6,889)
Net unrealized appreciation of futures contracts 210,725 12,000 0 0
Net unrealized appreciation (depreciation)
of investments 355,110 (85,996) 435,357 19,151
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS 1,592,007 94,786 513,288 32,869
Distributions to shareholders:
From net investment income (307,992) (184,556) (41,459) (20,607)
From net realized capital gain 0 (74,335) 0 0
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 4,144,083 7,716,275 2,159,765 2,169,419
Net asset value of shares issued in reinvestment
of dividend distributions 307,992 258,893 41,459 20,607
Cost of shares redeemed (105,588) (372,474) (51,348) (90,816)
Net increase in net assets resulting from
capital share transactions (Note 4) 4,346,487 7,602,694 2,149,876 2,099,210
INCREASE IN NET ASSETS 5,630,502 7,438,589 2,621,705 2,111,472
NET ASSETS
Beginning net assets 7,463,589 25,000 2,136,472 25,000
ENDING NET ASSETS $13,094,091 $7,463,589 $4,758,177 $2,136,472
SHARES ISSUED AND REDEEMED
Shares sold 393,799 777,328 193,254 211,849
Shares issued in reinvestment of dividends and
distributions 28,728 26,593 3,590 2,007
Shares redeemed (10,358) (37,498) (4,635) (8,905)
NET INCREASE IN SHARES OUTSTANDING 412,169 766,423 192,209 204,951
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
26
<PAGE> 28
LIFE & ANNUITY TRUST
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund Allocation Fund
---------------------------- ----------------------------
(Unaudited) From (Unaudited) From
Six Months Inception Six Months Inception
Ended on May 19, 1994 Ended on April 26, 1994
June 30, 1995 to Dec. 31, 1994 June 30, 1995 to Dec. 31, 1994
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations:
Net investment income $36,629 $24,035 $42,797 $26,658
Net realized gain (loss) on sale of investments 398 5 26,975 (17,226)
Net unrealized appreciation of futures contracts 0 0 0 0
Net unrealized appreciation (depreciation)
of investments 0 0 43,516 (13,891)
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING
FROM OPERATIONS 37,027 24,040 113,288 (4,459)
Distributions to shareholders:
From net investment income (36,629) (24,035) (42,797) (26,658)
From net realized capital gain 0 (5) 0 0
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 1,733,927 3,110,954 909,647 948,941
Net asset value of shares issued in reinvestment
of dividend distributions 36,628 24,040 42,797 26,658
Cost of shares redeemed (1,452,141) (1,668,446) (84,580) (103,909)
Net increase in net assets resulting from
capital share transactions (Note 4) 318,414 1,466,548 867,864 871,690
INCREASE IN NET ASSETS 318,812 1,466,548 938,355 840,573
NET ASSETS
Beginning net assets 1,491,548 25,000 865,573 25,000
ENDING NET ASSETS $1,810,360 $1,491,548 $1,803,928 $865,573
SHARES ISSUED AND REDEEMED
Shares sold 1,733,928 3,110,954 90,485 95,072
Shares issued in reinvestment of dividends and
distributions 36,628 24,040 4,268 2,724
Shares redeemed (1,452,141) (1,668,446) (8,369) (10,432)
NET INCREASE IN SHARES OUTSTANDING 318,415 1,466,548 86,384 87,364
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
27
<PAGE> 29
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
Asset Allocation Fund Growth and Income Fund
--------------------------------- -----------------------------------
(Unaudited) From (Unaudited) From
For the Six Inception For the Six Inception
Months Ended on April 15, 1994 Months Ended on April 12, 1994
June 30, 1995 to Dec. 31, 1994 June 30, 1995 to Dec. 31, 1994
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, Beginning of period $ 9.71 $10.00 $10.30 $10.00
Income from investment operations:
Net investment income 0.29 0.30 0.12 0.14
Net realized and unrealized gains/(losses) on investments 1.38 (0.19) 1.61 0.30
------- ------ ------ ------
Total from investment operations 1.67 0.11 1.73 0.44
Less distributions:
Dividends from net investment income (0.29) (0.30) (0.12) (0.14)
Distributions from realized capital gains 0.00 (0.10) 0.00 0.00
------- ------ ------ ------
Total from distributions (0.29) (0.40) (0.12) (0.14)
------- ------ ------ ------
Net asset value, End of period $ 11.09 $ 9.71 $11.91 $10.30
======== ====== ====== ======
Total return (not annualized) 17.37% 1.13% 16.87% 4.47%
Ratios/supplemental data:
Net assets, end of period (000) $13,094 $7,464 $4,758 $2,136
Number of shares outstanding, end of period (000) 1,181 769 400 207
Ratios to average net assets (annualized):
Ratio of expenses to average net assets(1) 0.26% 0.00% 0.29% 0.00%
Ratio of net investment income to average net assets(2) 6.23% 6.30% 2.61% 3.00%
Portfolio Turnover 40% 0% 38% 21%
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 1.13% 2.24% 3.13% 10.18%
(2) Ratio of net investment income to average net assets
prior to waived fees and reimbursed expenses 5.37% 4.06% (0.23)% (7.18)%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
28
<PAGE> 30
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING DURING EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
U.S. Government
Money Market Fund Allocation Fund
--------------------------------- -----------------------------------
(Unaudited) From (Unaudited) From
For the six Inception For the Six Inception
Months Ended on May 19, 1994 Months Ended on April 26, 1994
June 30, 1995 to Dec. 31, 1994 June 30, 1995 to Dec. 31, 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, Beginning of period $ 1.00 $ 1.00 $ 9.63 $10.00
Income from investment operations:
Net investment income 0.03 0.03 0.34 0.40
Net realized and unrealized gains/(losses) on investments 0.00 0.00 0.61 (0.37)
------ ------ ------ ------
Total from investment operations 0.03 0.03 0.95 0.03
Less distributions:
Dividends from net investment income (0.03) (0.03) (0.34) (0.40)
Distributions from realized capital gains 0.00 0.00 0.00 0.00
------ ------ ------ ------
Total from distributions (0.03) (0.03) (0.34) (0.40)
------ ------ ------ ------
Net asset value, End of period (000) $ 1.00 $ 1.00 $10.24 $ 9.63
====== ====== ====== ======
Total return (not annualized) 2.75% 2.71% 9.84% 0.41%
Ratios/supplemental data:
Net assets, end of period (000) $1,810 $1,492 $1,804 $ 866
Number of shares outstanding, end of period (000) 1,810 1,492 176 90
Ratios to average net assets (annualized):
Ratio of expenses to average net assets(1) 0.24% 0.00% 0.34% 0.00%
Ratio of net investment income to average net assets(2) 5.48% 4.63% 6.95% 7.35%
Portfolio Turnover N/A N/A 109% 130%
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Ratio of expenses to average net assets prior to
waived fees and reimbursed expenses 0.27% 11.43% 4.31% 12.73%
(2) Ratio of net investment income to average net assets
prior to waived fees and reimbursed expenses 5.46% (6.80)% 2.98% (5.38)%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
29
<PAGE> 31
LIFE & ANNUITY TRUST
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION. Life and Annuity Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as an open-end series investment
company. The Trust was organized as a Delaware Business Trust on October 28,
1993. The Trust consists of four separate diversified funds (the "Funds"): the
Asset Allocation Fund which commenced operations on April 15, 1994, the Growth
and Income Fund which commenced operations on April 12, 1994, the Money Market
Fund which commenced operations on May 19, 1994, and the U.S. Government
Allocation Fund which commenced operations on April 26, 1994.
The Funds are available exclusively as pooled funding vehicles for certain
participating life insurance companies offering variable annuity contracts and
variable life insurance policies.
The following significant accounting policies are consistently followed by
the Trust in the preparation of its financial statements, and such policies are
in conformity with generally accepted accounting principles for investment
companies.
INVESTMENT POLICY AND SECURITY VALUATION
For all of the Funds except the Money Market Fund, investments in
securities for which the primary market is a national securities exchange or the
NASDAQ National Market System are stated at the last reported sales price on the
day of valuation. U.S. Government obligations are valued at the stated mean
between the last reported bid and ask prices. In the absence of any sale of such
securities on the valuation date and in the case of other securities, excluding
money market instruments maturing in 60 days or less, the valuations are based
on latest quoted bid prices. Debt securities maturing in 60 days or less are
valued at amortized cost, which approximates market value. Securities for which
quotations are not readily available are valued at fair value as determined by
policies set by the Board of Trustees.
The Money Market Fund uses the amortized cost method to value its portfolio
securities and attempts to maintain a constant net asset value of $1.00 per
share. The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortized premium over the period until maturity,
which approximates market value.
Cash or high quality money market instruments relating to firm commitment
purchase agreements and or futures contracts are segregated by the custodian and
may not be sold while the current commitment is outstanding.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on the date the securities are
purchased or sold (trade date). Dividend income is recognized on the ex-dividend
date, and interest income is accrued daily. Realized gains or losses are
reported on the basis of identified cost of securities delivered. Bond discounts
and premiums are amortized as required by the Internal Revenue Code (the
"Code").
REPURCHASE AGREEMENTS
Transactions involving purchases of securities under agreements to resell
("repurchase agreements") are treated as collateralized financing transactions
and are recorded at their contracted resale amounts. These repurchase
agreements, if any, are detailed in each Fund's Portfolio of Investments. The
adviser to the Funds pools the cash and
30
<PAGE> 32
LIFE & ANNUITY TRUST
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
invests in repurchase agreements entered into by the Funds. The prospectuses
require that the cash investments be fully collateralized based on values that
are marked to market daily. The collateral is held by an agent bank under a
tri-party agreement. It is the adviser's responsibility to value collateral
daily and to obtain additional collateral as necessary to maintain market value
equal to or greater than the resale price. The repurchase agreements held in the
Funds at June 30, 1995, are collateralized by U.S. Treasury or Federal Agency
obligations. The repurchase agreements were entered into on June 30, 1995.
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income of the Asset
Allocation Fund and the Growth and Income Fund are declared and distributed
quarterly. Dividends of the U.S. Government Allocation Fund are declared and
distributed monthly, and dividends of the Money Market Fund, are declared daily
and distributed monthly. Any dividends to shareholders from net realized capital
gains are declared and distributed annually.
FEDERAL INCOME TAXES
The Trust's policy is to comply with the requirements of the Code that are
applicable to regulated investment companies and to distribute substantially all
its taxable income and any net realized capital gains to its shareholders.
Accordingly, there is no provision for federal or state income taxes. The Growth
& Income Fund has a net capital loss carryforward of $1,108 which will expire in
the year 2002 and the U.S. Government Allocation Fund has a net capital loss
carryforward of $51 which will expire in the year 2002. The Board intends to
offset net capital gains with each capital loss carryforward until each
carryforward has been fully utilized or expires. No capital gain distribution
shall be made until the capital loss carryforward has been fully utilized or
expires.
FUTURES CONTRACTS
The Asset Allocation Fund and the U.S. Government Allocation Fund may
purchase futures contracts to gain exposure to market changes as this procedure
may be more efficient or cost effective than actually buying the securities. A
futures contract is an agreement between parties to buy and sell a security at a
set price on a future date. Upon entering into such a contract, a Fund is
required to pledge to the broker an amount of cash, U.S. Government securities
or other high quality debt securities equal to the minimum "initial margin"
requirements of the exchange. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are known as
"variation margin" and are recorded by the Fund as unrealized gains or losses.
When the contract is closed, the Fund records a realized gain or loss equal to
the differences between the value of the contract at the time it was opened and
the value at the time it was closed. Pursuant to regulations and/or published
positions of the Securities and Exchange Commission, the Asset Allocation Fund
and the U.S. Government Allocation Fund may be required to segregate cash or
high quality money market instruments in connection with futures transactions in
an amount generally equal to the entire value of the underlying contracts. Risks
of entering into futures contracts include the possibility that there may be an
illiquid market and that a change in the value of the contract or option may not
correlate with changes in the value of the underlying securities. On June 30,
1995 the Asset Allocation Fund held the following futures contracts:
<TABLE>
<CAPTION>
Notional
Contract Net Unrealized
Contracts Type Expiration Date Value Appreciation
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9 S&P 500 Index September 1995 $2,462,175 $154,925
14 S&P 500 Index December 1995 3,858,750 55,800
</TABLE>
31
<PAGE> 33
LIFE & ANNUITY TRUST
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
ORGANIZATION EXPENSES
Stephens Inc. ("Stephens"), the Funds' administrator and distributor, has
charged the Funds for expenses incurred in connection with the organization and
initial registration of the Funds. Organizational expenses of $52,120 for each
fund are payable to Stephens as of June 30, 1995. These expenses are being
amortized by the Funds on a straight-line basis over 60 months from the date
each Fund commenced operations. In the event any of the initial shares of
beneficial interest are redeemed during the 60 month amortization period,
Stephens will reimburse the Funds for the unamortized balance of such
organizational costs in the same proportion as the number of shares of
beneficial interest reduced bears to the number of initial shares of beneficial
interest outstanding at the time of redemption.
2. AGREEMENTS AND OTHER TRANSACTIONS
WITH AFFILIATES
The Trust has entered into advisory contracts on behalf of the Funds with
Wells Fargo Bank, N.A. ("WFB"). Pursuant to the contracts, WFB furnishes to the
Funds investment guidance and policy direction in connection with daily
portfolio management of the funds. Under the contracts with the Asset Allocation
Fund, the Growth and Income Fund and the U.S. Government Allocation Fund, WFB is
entitled to a monthly advisory fee based on an annual rate of 0.60% of average
daily net assets. Under the contract with the Money Market Fund, WFB is entitled
to a monthly advisory fee based on an annual rate of 0.45% of the average daily
net assets.
In connection with the Asset Allocation Fund and the U.S. Government
Allocation Fund, the Trust and WFB have entered into sub-advisory contracts with
Wells Fargo Nikko Investment Advisors ("WFNIA"). WFNIA is an affiliate of WFB.
Wells Fargo Institutional Trust Company, N. A. ("WFITC"), a subsidiary of WFNIA,
provides custody services for the Asset Allocation Fund and the U.S. Government
Allocation Fund. WFITC is compensated for these services from the fees paid for
its subadvisory services. Pursuant to such agreements, WFB pays WFNIA out of its
advisory fee from the Asset Allocation Fund and the U.S. Government Allocation
Fund annual sub-advisory fees equal to 0.20% and 0.15% of the average daily net
assets, respectively.
On June 21, 1995, Wells Fargo & Co. and the Nikko Securities Co. Ltd.
signed a definitive agreement to sell their joint venture interest in Wells
Fargo Nikko Investment Advisors ("WFNIA") to Barclays PLC of the U.K. The sale,
which is subject to the approval of appropriate regulatory authorities, is
expected to close in the fourth quarter of 1995.
Barclays is the largest clearing bank in the U.K. with $259 billion in
total assets. Barclays has announced its intention to combine WFNIA with the
quantitative group of BZW Asset Management ("BZWAM"), its international asset
arm. BZWAM is the largest quantitative fund manager in Europe, with
approximately $32 billion of quantitative funds under management, as of March
31, 1995. The BZW Division of Barclays, of which BZWAM forms a part, is the
investment banking arm of Barclays and offers a full range of investment
banking, capital markets and asset management services.
Under the Investment Company Act of 1940, this proposed change of control
of WFNIA would result in an assignment and termination of the current
Sub-Investment Advisory Agreements between WFNIA, Wells Fargo Bank and the
Funds. Subject to the approval of the Company's Board of Directors, it is
contemplated that a special meeting of shareholders of the Funds will be
convened to consider a new Sub-Investment Advisory Agreement with
32
<PAGE> 34
LIFE & ANNUITY TRUST
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
the new sub-advisor, which will become effective only upon the change of control
of WFNIA. It is not anticipated that the proposed change of control will change
the investment objective or overall investment strategy of the Funds.
The Trust has also entered into contracts on behalf of the Growth and
Income Fund and the Money Market Fund with WFB for custody servicing and
portfolio accounting functions. WFB is compensated for custody services based on
an annual rate of 0.0167% of the average daily net assets of the Funds, plus
transaction charges. For portfolio accounting services, WFB is compensated at a
base rate of $2,000 monthly plus 0.07% for the first $50 million, 0.045% for the
next $50 million and 0.02% for the net assets over $100 million.
The Trust has entered into a contract on behalf of each of the Funds with
WFB whereby WFB will provide transfer agent servicing functions for each of the
Funds. Under the contract, WFB is entitled to an annual rate of 0.05% of the
Funds' average daily net assets unless the net assets of each of the Funds are
under $20 million. For as long as the net assets remain under $20 million a Fund
will not be charged any transfer agent fees by WFB.
The Trust has entered into an administration agreement on behalf of the
Funds with Stephens. Under the agreement, Stephens will provide supervisory and
administrative services to the Funds. For providing supervisory and
administrative services, each Fund pays Stephens a monthly fee at the annual
rate of 0.03% of the Funds' average daily net assets.
WAIVED FEES AND REIMBURSED EXPENSES
The following amounts of fees and expenses have been waived and or
reimbursed for the six months ended June 30, 1995:
<TABLE>
<CAPTION>
Waived
Fees
and
Reimbursed
Waived Expenses
Fees by
FUND by WFB Administrator Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Asset Allocation $30,750 $12,044 $42,794
Growth and Income 26,195 18,958 45,153
Money Market 16,711 21,000 37,711
U.S. Government Allocation 3,978 20,474 24,452
- -------------------------------------------------------------------------------
</TABLE>
Waived fees and reimbursed expenses continue at the discretion of Wells
Fargo Bank and the administrator.
Certain officers and directors of the Trust are also officers of Stephens.
At June 30, 1995, Stephens owned 26,523 shares of the Money Market Fund, and
2,705 shares of the U.S. Government Allocation Fund.
33
<PAGE> 35
LIFE & ANNUITY TRUST
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, exclusive of short-term securities, for
each Fund for the six months ended June 30, 1995 were as follows:
<TABLE>
<CAPTION>
U.S.
Asset Growth and Government
Allocation Income Allocation
AGGREGATE PURCHASES AND SALES OF: Fund Fund Fund
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS:
Purchases at cost $1,596,547 $ 0 $ 864,148
Sales proceeds 3,966,021 0 1,079,537
OTHER SECURITIES:
Purchases at cost 0 3,088,606 0
Sales proceeds 0 1,111,465 0
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
The Money Market Fund, not reflected in this schedule, trades exclusively
in short-term securities.
4. CAPITAL SHARE TRANSACTIONS
The Trust has authorized an unlimited number of no par value shares of
beneficial interest. Capital share transactions for each of the Funds for the
six months ended June 30, 1995 are disclosed in detail in the Statements of
Changes in Net Assets.
34
<PAGE> 36
AMERICAN SKANDIA TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1995
(UNAUDITED)
JANCAP GROWTH PORTFOLIO
INVESCO EQUITY INCOME PORTFOLIO
FOUNDERS CAPITAL APPRECIATION PORTFOLIO
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
35
<PAGE> 37
AMERICAN SKANDIA TRUST
JANCAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C>
COMMON STOCK -- 86.9%
AEROSPACE-DEFENSE -- 1.2%
Lockheed Martin Corp. ....... 60,225 $ 3,801,703
-----------
BANKING -- 4.6%
Chase Manhattan Corp. ....... 63,850 3,000,950
Chemical Banking Corp. ...... 44,125 2,084,906
Citicorp..................... 87,445 5,060,879
First Bank Systems, Inc. .... 82,375 3,377,375
First Interstate Bancorp..... 15,825 1,269,956
-----------
14,794,066
-----------
BEVERAGES & BOTTLING -- 5.9%
Coca-Cola Co. ............... 148,600 9,473,250
Pepsico, Inc. ............... 204,475 9,329,172
-----------
18,802,422
-----------
BUILDING & REAL ESTATE -- 0.4%
MDC Holdings, Inc. .......... 189,500 1,184,375
-----------
BUSINESS SERVICES -- 6.6%
Diebold, Inc. ............... 59,500 2,588,250
First Data Corp. ............ 182,500 10,379,688
General Motors Corp. Cl-E.... 189,650 8,249,775
-----------
21,217,713
-----------
CHEMICALS -- 1.0%
Hercules, Inc. .............. 67,700 3,300,375
-----------
COMMUNICATIONS -- 1.7%
Lin Television Corp.*........ 812 27,304
US Robotics, Inc. ........... 48,700 5,308,300
-----------
5,335,604
-----------
COMPUTERS -- 5.2%
Adobe Systems, Inc. ......... 50,000 2,900,000
International Business
Machines................... 35,000 3,360,000
Microsoft Corp.*............. 113,750 10,280,156
-----------
16,540,156
-----------
CONSUMER GOODS & SERVICES -- 6.8%
Coleman Co., Inc.*........... 75,875 2,693,563
Dial Corp. .................. 25 619
Duracell International,
Inc. ...................... 69,000 2,984,250
Lowe's Companies, Inc. ...... 291,900 8,720,513
Mattel, Inc. ................ 281,250 7,312,500
-----------
21,711,445
-----------
CONTAINERS -- 2.2%
Crown Cork & Seal Co.,
Inc.*...................... 137,275 6,880,909
-----------
DRUGS -- 5.7%
Amgen, Inc.*................. 59,900 4,818,206
Merck & Co., Inc. ........... 103,200 5,056,800
Pfizer, Inc. ................ 90,375 8,348,391
-----------
18,223,397
-----------
ENTERTAINMENT -- 2.8%
Circus Circus Enterprises,
Inc. ...................... 15,925 561,356
Heritage Media Corp.*........ 8,000 231,000
Walt Disney Corp. ........... 148,050 8,235,281
-----------
9,027,637
-----------
FINANCIAL SERVICES -- 10.4%
Countrywide Credit Ind.,
Inc. ...................... 160,925 3,379,425
Federal Home Loan Mortgage
Association................ 70,075 4,817,656
Federal National Mortgage
Association................ 90,215 8,514,041
Lehman Brothers Holdings,
Inc. ...................... 66,525 1,455,234
Merrill Lynch & Co., Inc. ... 213,100 11,187,750
Schwab, Charles Corp.
(New)...................... 91,350 3,962,306
-----------
33,316,412
-----------
FOOD PROCESSING -- 0.6%
Nabisco Holdings Corp. ...... 69,675 1,881,225
-----------
FOREST PRODUCTS -- 1.1%
Georgia Pacific Corp. ....... 40,875 3,545,906
-----------
MANUFACTURING-DIVERSIFIED -- 0.0%
Datalogix International*..... 4,625 112,734
-----------
MEDICAL -- 0.4%
Vivra, Inc.*................. 49,700 1,348,113
-----------
</TABLE>
36
<PAGE> 38
AMERICAN SKANDIA TRUST
JANCAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
METALS & STEELS -- 2.4%
Phelps Dodge Corp. .......... 129,675 $ 7,650,825
------------
NATURAL RESOURCE -- 0.6%
Boise Cascade Corp. ......... 51,100 2,069,550
------------
PAPER & PAPER PRODUCTS -- 0.9%
Willamette Industries,
Inc. ...................... 50,300 2,791,650
------------
PRINTING & PUBLISHING -- 1.0%
Gartner Group, Inc. New
Cl-A*...................... 100,000 2,900,000
Infinity Broadcast Corp.
Cl-A*...................... 11,475 382,978
------------
3,282,978
------------
TECHNOLOGY -- 23.7%
Alliance Semiconductor
Corp.*..................... 56,100 2,748,900
Altera Corp.*................ 214,700 9,285,775
Applied Materials, Inc.*..... 84,375 7,308,984
BDM International Inc. ...... 6,400 130,400
Cisco Systems*............... 44,850 2,267,728
General Instruments Corp.*... 51,925 1,992,622
Hewlett Packard Co. ......... 161,450 12,028,025
Intel Corp. ................. 135,850 8,601,003
Intuit, Inc.*................ 100,000 7,600,000
LSI Logic Corp.*............. 95,400 3,732,525
National Instruments
Corp.*..................... 32,450 575,988
National Semiconductor
Corp.*..................... 118,725 3,294,619
Oracle Systems Corp.*........ 37,632 1,453,536
Silicon Graphics, Inc. ...... 40,725 1,623,909
Texas Instruments, Inc. ..... 74,750 10,007,156
Xilinx, Inc.*................ 35,800 3,365,200
------------
76,016,370
------------
WASTE MANAGEMENT -- 1.7%
Browning-Ferris Industries,
Inc. ...................... 153,415 5,542,117
------------
TOTAL COMMON STOCK
(COST $227,979,623)............ 278,377,682
------------
PREFERRED STOCK -- 0.1%
FINANCIAL SERVICES
American Express
(COST $252,360)............ 6,000 291,000
------------
AMERICAN DEPOSITORY RECEIPTS -- 5.0%
ELECTRONICS -- 3.8%
Nokia Corp. PFD. ADR......... 92,718 5,528,311
Philips Electronics N.V. .... 161,000 6,882,750
------------
12,411,061
------------
FINANCIAL SERVICES -- 0.4%
Reuters Holding PLC ADR...... 22,725 1,139,091
------------
HEALTH -- 0.6%
Smithkline Beecham PLC ADR... 43,300 1,959,325
------------
TELECOMMUNICATIONS -- 0.2%
Ericsson, (L.N.) Telephone
Co. ....................... 33,000 660,000
------------
TOTAL AMERICAN DEPOSITORY
RECEIPTS
(COST $11,626,750)............. 16,169,477
------------
FOREIGN SECURITIES -- 3.1%
COMPUTER SERVICES & SOFTWARE
Sap AG Vorzug -- (DEM)
(COST $5,779,963).......... 7,781 9,864,824
------------
</TABLE>
<TABLE>
<CAPTION>
PAR
MATURITY (000)
--------- -------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 4.9%
FORD MOTOR CREDIT
CO.
6.05%
(COST
$15,794,689)..... 07/03/95 $15,800 15,794,689
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 1.3%
Federal National
Mortgage
Association
Discount Note
5.90%
(COST
$3,992,134)...... 07/13/95 4,000 3,992,134
-----------
</TABLE>
37
<PAGE> 39
AMERICAN SKANDIA TRUST
JANCAP GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 0.0%
Temporary Investment Cash
Fund........................ 51,664 51,664
Temporary Investment Fund..... 51,664 51,664
------------
(COST $103,328)............. 103,328
------------
TOTAL INVESTMENTS
(COST
$265,528,847**) -- 101.3%....... 324,593,134
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (1.3%).......... (4,315,382)
------------
NET ASSETS -- 100.0%.............. $320,277,752
============
The aggregate unrealized appreciation (depreciation) on a
tax basis is as follows:
Gross appreciation............ $ 59,911,041
Gross depreciation............ (846,754)
------------
Net appreciation.............. $ 59,064,287
============
COUNTRY ABBREVIATIONS
- --------------------------------------------------------
DEM - Germany
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing securities.
** Also cost for Federal income tax purposes.
See Notes to Financial Statements.
38
<PAGE> 40
AMERICAN SKANDIA TRUST
INVESCO EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
COMMON STOCK -- 65.1%
AEROSPACE -- 2.2%
Boeing Co. .................. 17,000 $ 1,064,625
Lockheed Martin Corp. ....... 20,000 1,262,500
----------
2,327,125
----------
AUTOMOBILES -- 0.5%
Chrysler Corp. .............. 10,000 478,750
----------
AUTOMOTIVE
PARTS-EQUIPMENT -- 2.2%
Borg Warner Automotive
Corp. ..................... 40,000 1,140,000
Eaton Corp. ................. 20,000 1,162,500
----------
2,302,500
----------
BANKING -- 2.9%
Bank of New York Co.,
Inc. ...................... 20,000 807,500
Chase Manhattan Corp. ....... 30,000 1,410,000
Citicorp..................... 15,000 868,125
----------
3,085,625
----------
BEVERAGES -- 1.3%
Seagram Co. LTD. ............ 40,000 1,385,000
----------
BROADCASTING -- 1.0%
CBS, Inc. ................... 15,000 1,005,000
----------
CHEMICALS -- 3.3%
Dupont (E.I.) de Nemours..... 10,000 687,500
Lawter International,
Inc. ...................... 100,000 1,200,000
PPG Industries, Inc. ........ 15,000 645,000
Vigoro Corp. ................ 22,000 913,000
----------
3,445,500
----------
COMPUTERS -- 3.2%
Apple Computer, Inc. ........ 15,000 696,563
Honeywell, Inc. ............. 25,000 1,078,125
International Business
Machines Corp. ............ 17,000 1,632,000
----------
3,406,688
----------
COMPUTER SERVICES &
SOFTWARE -- 0.6%
Computer Associates
International.............. 10,000 677,500
----------
CONGLOMERATES -- 0.5%
Tenneco, Inc. ............... 11,000 506,000
----------
CONSUMER STAPLES-TOBACCO -- 1.1%
Philip Morris Cos., Inc. .... 15,000 1,115,625
----------
ELECTRICAL EQUIPMENT -- 1.3%
General Electric Co. ........ 17,000 958,375
General Signal Corp. ........ 11,000 437,250
----------
1,395,625
----------
ELECTRONICS -- 1.5%
Intel Corp. ................. 25,000 1,582,813
----------
ENGINEERING &
CONSTRUCTION -- 0.7%
Fluor Corp. ................. 14,000 728,000
----------
ENTERTAINMENT -- 1.8%
Time Warner, Inc. ........... 25,000 1,028,125
Walt Disney Co. ............. 15,000 834,375
----------
1,862,500
----------
FINANCIAL SERVICES -- 3.2%
Beneficial Corp. ............ 30,000 1,320,000
H. & R. Block, Inc. ......... 30,000 1,233,750
PMI Group, Inc. ............. 20,000 867,500
----------
3,421,250
----------
FOODS -- 3.6%
CPC International, Inc. ..... 12,000 741,000
General Mills, Inc. ......... 16,000 822,000
Heinz, H.J. Co. ............. 20,000 887,500
Kellogg Co. ................. 10,000 713,750
Quaker Oats.................. 20,000 657,500
----------
3,821,750
----------
GOLD MINING -- 0.3%
Newmont Mining Corp. ........ 7,994 334,749
----------
HOTELS/MOTELS -- 1.5%
Hilton Hotels Corp. ......... 23,000 1,615,750
----------
HOUSEHOLD FURNITURE &
APPLIANCES -- 0.7%
Armstrong World Industries,
Inc. ...................... 15,000 751,875
----------
INSURANCE -- 2.4%
Allmerica Property &
Casualty, Inc. ............ 70,000 1,548,750
Ohio Casualty Corp. ......... 30,000 945,000
----------
2,493,750
----------
</TABLE>
39
<PAGE> 41
AMERICAN SKANDIA TRUST
INVESCO EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ------------
<S> <C> <C>
MACHINERY & HEAVY
EQUIPMENT -- 2.3%
Caterpillar, Inc. ........... 10,000 $ 642,500
Cummins Engine, Inc. ........ 10,000 436,250
Deere & Co. ................. 10,000 856,250
Ingersoll-Rand Co. .......... 12,000 459,000
----------
2,394,000
----------
MANUFACTURING -- 5.5%
Allied-Signal, Inc. ......... 18,000 801,000
Eastman Kodak Co. ........... 25,000 1,515,625
Minnesota Mining &
Manufacturing Co. ......... 20,000 1,145,000
Trinova Corp. ............... 20,000 700,000
Tyco International LTD. ..... 15,000 810,000
Whitman Corp. ............... 40,000 775,000
----------
5,746,625
----------
MEDICAL -- 0.7%
Baxter International,
Inc. ...................... 20,000 727,500
----------
METALS & MINING -- 0.7%
ASARCO, Inc. ................ 25,000 762,500
----------
MINING -- 1.1%
Potash Corp. of Saskatchewan,
Inc. ...................... 20,000 1,117,500
----------
NATURAL GAS -- 0.3%
El Paso Natural Gas Co. ..... 12,000 342,000
----------
OIL -- 4.2%
Amoco Corp. ................. 14,000 932,750
Apache Corp. ................ 13,700 375,038
Atlantic Richfield Co. ...... 8,000 878,000
Chevron Corp. ............... 20,000 932,500
Exxon Corp. ................. 12,000 847,500
Mobil Corp. ................. 5,000 480,000
----------
4,445,788
----------
OIL EQUIPMENT & SERVICES -- 2.4%
Dresser Industries, Inc. .... 35,000 778,750
Halliburton Co. ............. 30,000 1,072,500
Schlumberger LTD. ........... 11,000 683,375
----------
2,534,625
----------
PHARMACEUTICAL -- 3.1%
Abbott Laboratories.......... 20,000 810,000
American Home Products
Corp. ..................... 12,000 928,500
Upjohn Co. .................. 40,000 1,515,000
----------
3,253,500
----------
PUBLISHING -- 1.0%
Donnelley & Sons Co.,
R.R. ...................... 30,000 $ 1,080,000
----------
RAILROADS -- 1.2%
Kansas City Southern
Industries, Inc. .......... 20,000 745,000
Union Pacific Corp. ......... 9,000 498,375
----------
1,243,375
----------
RETAIL MERCHANDISING -- 0.7%
Sears Roebuck & Co. ......... 12,000 718,500
----------
RETAIL SPECIALTY -- 2.2%
Jostens, Inc. ............... 30,000 637,500
Limited, Inc. ............... 30,000 660,000
Melville Corp. .............. 30,000 1,027,500
----------
2,325,000
----------
SURFACE TRANSPORTATION -- 0.3%
Overseas Shipholding Group,
Inc. ...................... 17,000 352,750
----------
TELEPHONES -- 3.6%
AT&T Corp. .................. 25,000 1,328,125
Bell Atlantic Corp. ......... 10,000 560,000
NYNEX Corp. ................. 15,000 603,750
U.S. West, Inc. ............. 30,000 1,248,750
----------
3,740,625
----------
TOTAL COMMON STOCK
(COST $61,248,053)............. 68,527,663
----------
PREFERRED STOCK -- 0.7%
GOLD MINING
Amax Gold, Inc. $3.75 Cl-B
PFD.
(COST $750,000)............ 15,000 723,750
----------
AMERICAN DEPOSITORY RECEIPTS -- 0.6%
TELECOMMUNICATIONS
Cable and Wireless
(COST $615,075)............ 30,000 615,000
----------
</TABLE>
40
<PAGE> 42
AMERICAN SKANDIA TRUST
INVESCO EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------ ------------
<S> <C> <C> <C>
CORPORATE BONDS -- 13.5%
AIRLINES -- 0.5%
Delta Air Lines
9.30%............... 01/02/11 $ 500 $ 570,067
------------
AUTOMOBILES &
RELATED -- 0.3%
Auburn Hills Trust
12.00%.............. 05/01/20 250 364,063
------------
BROADCASTING -- 1.5%
Act III Broadcasting,
Inc.
9.63%............... 12/15/03 500 491,250
Allbritton
Communications Co.
Senior Subordinate
Debenture
11.50%.............. 08/15/04 500 531,250
SCI Television, Inc.
Senior Notes
11.00%.............. 06/30/05 500 521,875
------------
1,544,375
------------
BUILDING & BUILDING
SUPPLIES -- 1.2%
USG Corp.
9.25%............... 09/15/01 600 604,500
8.75%............... 03/01/17 750 695,625
------------
1,300,125
------------
CABLE TELEVISION -- 1.4%
Century Communications
9.50%............... 03/01/05 500 503,750
CF Cable TV, Inc.
11.63%.............. 02/15/05 250 266,250
Jones Intercable,
Senior Subordinate
Debenture
10.50%.............. 03/01/08 250 264,688
Viacom, Inc.,
Subordinate
Debenture
8.00%............... 07/07/06 500 487,500
------------
1,522,188
------------
CHEMICALS -- 1.2%
Borden Chemicals &
Plastics
9.50%............... 05/01/05 $ 500 507,500
Rexene Corp.
11.75%.............. 12/01/04 250 267,188
Sifto Canada, Inc.
8.50%............... 07/15/00 500 474,375
------------
1,249,063
------------
CONSUMER PRODUCTS -- 0.5%
Philip Morris Cos.,
Inc.
9.80%............... 12/15/98 500 508,125
------------
FINANCIAL -- 1.9%
Associates Corp. of
North America
8.55%............... 07/15/09 425 490,344
Chrysler Financial
Corp.
6.50%............... 06/15/98 500 500,000
General Motors
Acceptance Corp.
7.13%............... 06/01/99 500 508,750
Westinghouse Credit
Corp.
8.88%............... 06/14/14 500 528,125
------------
2,027,219
------------
FOREIGN GOVERNMENT -- 0.6%
Province of
Newfoundland
9.00%............... 06/01/19 500 593,125
------------
GAMING -- 0.5%
GNS Finance Corp.
9.25%............... 03/15/03 500 525,625
------------
HEALTHCARE -- 0.7%
Hillhaven Corp.
10.13%.............. 09/01/01 250 255,938
National Medical
Enterprises
9.63%............... 09/01/02 500 531,250
------------
787,188
------------
</TABLE>
41
<PAGE> 43
AMERICAN SKANDIA TRUST
INVESCO EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------ ------------
<S> <C> <C> <C>
PAPER & PAPER
PRODUCTS -- 0.5%
Repap New Brunswick
10.63%.............. 04/15/05 $ 500 $ 507,500
------------
PUBLISHING -- 0.8%
News America Holdings
8.50%............... 02/23/25 250 272,813
Valassis
Communications
9.55%............... 12/01/03 500 555,625
------------
828,438
------------
RECREATIONAL -- 0.5%
Royal Caribbean
Cruises Note
11.38%.............. 05/15/02 250 274,063
United Artists Theatre
11.50%.............. 05/01/02 175 187,469
------------
461,532
------------
TELECOMMUNICATIONS -- 1.2%
Allnet Communication
Services, Inc.
9.00%............... 05/15/03 750 802,500
Centennial Cellular,
Senior Notes
8.88%............... 11/01/01 500 485,000
------------
1,287,500
------------
UTILITIES -- 0.2%
Commonwealth Edison
Corp.
6.38%............... 10/01/98 175 174,781
------------
TOTAL CORPORATE BONDS
(COST $13,671,728)...... 14,250,914
------------
ZERO COUPON BONDS -- 1.7%
CABLE TELEVISION -- 0.5%
Marcus Cable Operating
Co.
6.00%............... 08/01/99 900 571,500
------------
GAMING -- 0.2%
Resorts International
7.70%............... 06/30/00 250 222,500
------------
BEVERAGES -- 1.0%
Dr. Pepper/Seven-Up
Cos.
1.71%............... 11/01/02 1,125 997,031
------------
TOTAL ZERO COUPON BONDS
(COST $1,774,811)....... 1,791,031
------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 7.5%
Federal Farm Credit
Bank -- 0.5%
6.65%............... 05/01/96 500 502,930
------------
Federal Home Loan Mortgage
Corp. -- 4.6%
6.50%............... 01/01/00 1,000 985,620
7.50%............... 07/01/09 942 958,321
7.00%............... 04/01/24 995 980,127
7.00%............... 07/01/24 974 958,745
8.00%............... 12/01/24 992 1,011,623
------------
4,894,436
------------
</TABLE>
42
<PAGE> 44
AMERICAN SKANDIA TRUST
INVESCO EQUITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE
-------- ------ ------------
<S> <C> <C> <C>
Government National
Mortgage
Association -- 1.9%
7.50%............... 10/15/23 $1,963 $ 1,975,938
------------
Tennessee Valley Authority
Notes -- 0.5%
6.82%............... 05/19/97 500 500,000
------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(COST $7,571,488)................ 7,873,304
------------
U.S. TREASURY NOTES -- 6.1%
7.75%............... 11/30/99 1,000 1,066,814
6.75%............... 04/30/00 1,500 1,545,720
6.25%............... 05/31/00 1,000 1,011,562
5.88%............... 02/15/04 750 732,390
6.50%............... 05/15/05 2,000 2,043,580
------------
TOTAL U.S. TREASURY NOTES
(COST $6,285,443)................ 6,400,066
------------
COMMERCIAL PAPER -- 2.8%
General Motors
Acceptance Corp.
6.03%
(COST
$2,997,993)......... 07/05/95 3,000 2,997,993
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
SHORT TERM INVESTMENTS -- 3.2%
Temporary Investment Cash
Fund..................... 1,665,584 $ 1,665,584
Temporary Investment
Fund..................... 1,665,583 1,665,583
------------
(COST $3,331,167)........ 3,331,167
------------
TOTAL INVESTMENTS
(COST
$98,245,758*) -- 101.2%.... 106,510,888
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (1.2%)....... (1,222,371)
------------
NET ASSETS -- 100%............. $105,288,517
============
The aggregate unrealized appreciation (depreciation) on a
tax basis is as follows:
Gross appreciation..................... $ 8,745,500
Gross depreciation..................... (480,370)
------------
Net appreciation....................... $ 8,265,130
============
</TABLE>
- --------------------------------------------------------------------------------
* Also cost for Federal income tax purposes.
See Notes to Financial Statements.
43
<PAGE> 45
AMERICAN SKANDIA TRUST
FOUNDERS CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
COMMON STOCK -- 84.0%
AUTO-PARTS/EQUIPMENT -- 0.6%
Tops Source Technologies,
Inc.*...................... 46,000 $ 319,125
-----------
BROADCASTING -- 0.5%
Comcast U.K. Cable
Partners*.................. 15,000 241,875
-----------
BROADCASTING & PUBLISHING -- 1.0%
SFX Broadcasting Cl-A........ 18,700 500,225
-----------
BUILDING & BUILDING
SUPPLIES -- 2.1%
Cameron Ashley, Inc.*........ 20,000 265,000
Harsco Corp. ................ 15,000 791,250
-----------
1,056,250
-----------
BUSINESS SERVICES -- 2.1%
Insurance Auto Auctions,
Inc.*...................... 25,000 731,250
Norrell Corp. ............... 17,000 323,000
-----------
1,054,250
-----------
COMMUNICATION EQUIPMENT -- 1.9%
Anadigics, Inc.*............. 17,250 336,375
Tellabs, Inc.*............... 12,000 577,500
-----------
913,875
-----------
COMPUTERS -- 13.4%
Adobe Systems, Inc. ......... 13,000 754,000
Alantec Corp.*............... 14,000 479,500
Cerner Corp.*................ 6,000 367,500
HCIA, Inc.*.................. 8,000 250,000
Informix Corp.*.............. 19,500 494,812
Network General Corp.*....... 9,000 245,250
Opti, Inc.*.................. 55,750 1,268,312
Parametric Technology
Corp.*..................... 14,000 696,500
Pri Automation, Inc. ........ 15,000 491,250
Pyxis Corp.*................. 18,000 407,250
Sterling Software, Inc.*..... 21,000 808,500
Stormedia Inc. .............. 9,750 307,123
-----------
6,569,997
-----------
COMPUTER SOFTWARE & SERVICES -- 4.2%
Arcsys, Inc.*................ 12,600 428,400
Broadway & Sey*.............. 16,150 335,113
Dendrite International,
Inc. ...................... 19,125 308,391
Eagle Point Software
Corp. ..................... 32,200 547,400
Trident Microsystems,
Inc.*...................... 21,875 453,906
-----------
2,073,210
-----------
CONSUMER GOODS & SERVICES -- 1.1%
Quicksilver, Inc.*........... 20,000 $ 525,000
-----------
DRUGS -- 1.4%
Watson Pharmaceuticals*...... 17,275 673,725
-----------
ELECTRICAL EQUIPMENT -- 2.6%
Microchip Technology,
Inc.*...................... 26,000 945,750
Sanmina*..................... 9,000 342,000
-----------
1,287,750
-----------
ELECTRONICS -- 9.0%
Alliance Semiconductor
Corp. ..................... 20,000 980,000
Altera Corp. ................ 14,100 609,825
DSP Group, Inc.*............. 24,000 600,375
LAM Research Corp.*.......... 10,000 640,000
LSI Logic Corp.*............. 20,000 782,500
Orbit Semiconductor, Inc. ... 23,800 505,750
Tower Semiconductor LTD. .... 11,250 326,250
-----------
4,444,700
-----------
ENTERTAINMENT -- 1.9%
Anchor Gaming................ 16,375 364,344
Movie Gallery*............... 8,000 280,500
WMS Industries, Inc.*........ 16,000 314,000
-----------
958,844
-----------
FINANCIAL -- 1.1%
Banco Latinoamericano de
Exportaciones, SA*......... 4,000 132,500
Mercury Finance Co. ......... 20,000 385,000
-----------
517,500
-----------
FOODS -- 0.9%
General Nutrition Center,
Inc.*...................... 12,000 421,500
-----------
FUNERAL SERVICES -- 1.7%
Loewen Group, Inc. .......... 23,000 819,375
-----------
</TABLE>
44
<PAGE> 46
AMERICAN SKANDIA TRUST
FOUNDERS CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
HEALTHCARE -- 0.5%
Healthsource, Inc.*.......... 7,000 $ 245,000
-----------
HOME FURNISHINGS/HOUSEWARES -- 1.7%
Catalina Lighting, Inc....... 22,150 127,363
Williams-Sonoma, Inc.*....... 35,000 770,000
-----------
897,363
-----------
HOTEL/GAMING -- 1.7%
Trump Hotels & Casino
Resort*.................... 61,700 825,238
-----------
INSURANCE -- 1.0%
HCC Insurance Holdings*...... 18,000 468,000
-----------
LEISURE TIME -- 0.8%
Golf Enterprises, Inc.*...... 30,000 370,313
-----------
MANUFACTURING -- 5.3%
Asyst Technologies, Inc.*.... 25,000 928,125
Authentic Fitness Corp. ..... 40,000 670,000
Bolle America, Inc.*......... 24,000 159,000
Plantronics*................. 14,000 374,500
Wolverine World Wide,
Inc. ...................... 22,500 466,875
-----------
2,598,500
-----------
MEDICAL & MEDICAL
SERVICES -- 5.2%
Coram Healthcare Corp.*...... 20,000 282,500
Gulf South Medical*.......... 29,000 696,000
Hillhaven Corp.*............. 14,000 395,500
Horizon Healthcare Corp.*.... 19,725 352,584
Multicare Companies, Inc.*... 26,000 451,750
Orthodontic Centers of
America, Inc. ............. 16,000 388,000
-----------
2,566,334
-----------
METALS & MINING -- 0.6%
Easco, Inc.*................. 24,950 305,638
-----------
OFFICE EQUIPMENT -- 0.9%
Boise Cascade Office
Products*.................. 20,000 445,000
-----------
OIL & GAS -- 1.4%
Seitel, Inc.*................ 23,000 713,000
-----------
PHARMACEUTICAL -- 3.0%
Biogen, Inc.*................ 8,000 356,000
Circa Pharmaceuticals,
Inc.*...................... 35,000 1,115,625
-----------
1,471,625
-----------
RESTAURANTS -- 1.8%
Doubletree Corp.*............ 21,400 $ 461,438
Uno Restaurant Corp.*........ 40,000 415,000
-----------
876,438
-----------
RETAILING -- 4.6%
Fusion System Corp.*......... 11,000 376,750
Proffitt's, Inc.*............ 13,475 400,881
Strouds, Inc.*............... 70,000 420,000
The Sports Authority*........ 30,000 611,250
Trendlines*.................. 30,000 450,000
-----------
2,258,881
-----------
TELECOMMUNICATIONS -- 3.8%
ALC Communications Corp.*.... 22,000 992,750
Intelcom Group*.............. 17,100 152,831
LCI International, Inc.*..... 24,125 738,828
-----------
1,884,409
-----------
TRANSPORTATION -- 1.0%
Mark VII, Inc. .............. 30,000 491,250
-----------
TEXTILES -- 1.5%
Nautica*..................... 20,000 725,000
-----------
TOYS -- 0.7%
Happiness Express, Inc.*..... 25,000 331,250
-----------
TRUCKING -- 0.9%
Celadon Group*............... 28,000 427,000
-----------
UTILITIES-TELEPHONE -- 2.1%
Intermedia Communications of
Florida, Inc.*............. 32,000 360,000
Worldcom, Inc. .............. 25,000 675,000
-----------
1,035,000
-----------
TOTAL COMMON STOCK
(COST $33,057,956)............. 41,312,440
-----------
AMERICAN DEPOSITORY RECEIPTS -- 1.0%
DRUGS
Teva Pharmaceutical
Industries LTD.
(COST $304,524).......... 13,000 487,500
-----------
</TABLE>
45
<PAGE> 47
AMERICAN SKANDIA TRUST
FOUNDERS CAPITAL APPRECIATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
FOREIGN SECURITIES -- 5.0%
BROADCASTING -- 1.0%
Flextech PLC -- (UK)*........ 87,000 $ 507,914
-----------
MANUFACTURING -- 1.0%
Hunter Douglas -- (NETH)..... 11,022 480,083
-----------
MANUFACTURING-OPTICAL
GLASS -- 1.2%
Hoya Corp. -- (JPN).......... 20,000 590,145
-----------
RETAIL MERCHANDISING -- 1.0%
Next PLC Ord -- (UK)......... 86,000 467,191
-----------
TRANSPORTATION EQUIPMENT -- 0.8%
IHC Caland -- (NETH)......... 14,000 397,496
-----------
TOTAL FOREIGN SECURITIES
(COST $2,245,855).............. 2,442,829
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
MATURITY (000)
-------- ------
<S> <C> <C> <C>
COMMERCIAL PAPER -- 13.5%
AUTOMOBILES -- 0.6%
Ford Motor Credit
Co. 5.97%........ 07/03/95 $ 310 309,897
DIVERSIFIED -- 0.8%
General Electric
Capital Corp.
6.03%............ 07/11/95 400 399,330
ELECTRONICS -- 0.8%
Hitachi America,
LTD. 5.97%....... 07/05/95 400 399,735
FINANCIAL -- 0.3%
Ciesco 6.05%....... 07/14/95 150 149,672
FOODS -- 2.0%
Golden Peanuts Co.
5.97%............ 07/06/95 1,000 999,171
INSURANCE
(LIFE) -- 2.2%
Met Life Funding
Corp. 6.00%...... 07/07/95 1,060 1,058,940
RETAIL-MERCHANDISING -- 2.5%
Wal-Mart Stores
Inc.
5.95%............ 07/10/95 1,225 1,223,178
TELECOMMUNICATION -- 0.3%
AT&T Capital Corp.
5.95%............ 07/14/95 165 164,645
TRANSPORTATION -- 1.6%
PHH Corp
6.00%............ 07/13/95 800 798,400
UTILITIES-ELECTRIC -- 2.4%
New England Power
Co.
6.05%............ 07/10/95 420 419,365
6.00%............ 07/12/95 745 743,634
1,162,999
TOTAL COMMERCIAL PAPER
(COST $6,665,967)............... 6,665,967
TOTAL INVESTMENTS
(COST
$42,274,302**) -- 103.5%...... 50,908,736
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (3.5%).......... (1,707,136)
NET ASSETS -- 100.0%.............. $ 49,201,600
The aggregate unrealized appreciation (depreciation) on a
tax basis is as follows:
Gross appreciation............ $ 9,596,045
Gross depreciation............ (961,611)
------------
Net appreciation.............. $ 8,634,434
============
COUNTRY ABBREVIATIONS
- --------------------------------------------------------
NETH - Netherlands
JPN - Japan UK - United Kingdom
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing securities.
** Also cost for Federal income tax purposes.
See Notes to Financial Statements.
46
<PAGE> 48
AMERICAN SKANDIA TRUST
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
FOREIGN SECURITIES -- 90.4%
ARGENTINA -- 0.1%
Naviera Perez Companc......... 27,194 $ 114,215
Sociedad Comercial del
Plata....................... 14,380 35,519
Telecom Argentina Stet-Fran
Tel SA "B".................. 10,450 47,652
-----------
197,386
-----------
AUSTRALIA -- 2.1%
Australian Gas Light Co. ..... 89,321 283,670
Broken Hill Proprietary Co.,
LTD. ....................... 23,334 287,137
Burns Philip.................. 59,783 124,875
Coca-Cola Amatil.............. 20,057 123,976
Coca-Cola Amatil Rights*...... 5,014 0
Fletcher Challange LTD. ...... 12,000 33,591
Lend Lease Corp. ............. 9,000 114,970
Mayne Nickless................ 29,289 120,485
MIM Holdings LTD. ............ 35,000 43,267
News Corp. ................... 58,130 324,618
News Corp., PFD. ............. 29,148 144,342
Publishing & Broadcasting..... 47,300 139,127
Sydney Harbour Casino
Holdings*................... 130,000 134,386
Tab Corp. .................... 56,000 115,780
TNT LTD Conv. PFD. Cl-A....... 96,000 132,320
TNT LTD.*..................... 135,000 177,442
Western Mining Corp. ......... 40,377 221,750
Westpac Banking Corp. ........ 30,000 108,490
Woodside Petroleum LTD. ...... 53,000 207,858
-----------
2,838,084
-----------
AUSTRIA -- 0.1%
Creditanstalt-Bankverein
PFD. ....................... 550 31,734
Flughafen Wien AG............. 971 51,731
Oesterreichsche
Elekrizitats................ 1,180 86,652
-----------
170,117
-----------
BELGIUM -- 1.3%
Fortis AG..................... 1,080 114,304
Generale Banque............... 890 286,027
Krediet Bank NPV.............. 2,760 653,122
Societe Generale de
Belgique.................... 220 16,013
U.C.B. NPV.................... 669 668,059
-----------
1,737,525
-----------
BRAZIL -- 0.5%
Brazil Fund, Inc.***.......... 25,110 $ 630,889
-----------
CANADA -- 0.4%
Alcan Aluminum................ 11,370 343,075
Macmillan Bloedel............. 5,780 81,283
Royal Bank of Canada.......... 5,140 114,857
-----------
539,215
-----------
CHILE -- 0.4%
Five Arrows Chile Investment
Trust***.................... 54,120 159,383
Genesis Chile Fund***......... 5,130 187,245
The Chile Fund***............. 3,847 206,776
-----------
553,404
-----------
DENMARK -- 0.3%
Den Danske Bank AB............ 2,340 146,941
Teledanmark Series Cl-B....... 1,180 65,683
Unidanmark.................... 3,310 162,480
-----------
375,104
-----------
FINLAND -- 0.2%
Nokia Series Cl-A............. 5,304 310,175
-----------
FRANCE -- 7.9%
Accor......................... 3,680 490,333
Assurances Generales de
France...................... 1,600 51,284
Carrefour..................... 1,670 855,960
Charguers SA.................. 1,744 339,929
Ecco Ste Ord. ................ 3,379 530,375
Generale des Eaux............. 13,150 1,464,637
GTM Entrepose................. 2,100 165,547
L'Oreal....................... 710 178,221
Lafarge-Coppee SA............. 5,210 405,340
Lapeyre....................... 4,775 314,177
Legrand....................... 2,600 412,928
Louis Vuitton Moet Hennessy... 3,620 651,828
Peugeot....................... 965 133,953
Pinault Printemps Redoute..... 1,933 414,644
Poliet........................ 4,250 386,141
Primagaz (Cie des Gaz
Petrole).................... 425 74,072
Rexel......................... 925 160,262
Societe Generale.............. 1,110 129,813
Societe Nationale Elf
Aquitaine................... 6,680 493,942
</TABLE>
47
<PAGE> 49
AMERICAN SKANDIA TRUST
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
Sodexho SA.................... 1,150 $ 259,730
St. Gobain.................... 6,750 815,853
Television Francais........... 8,370 824,346
Total Cl-B.................... 7,660 461,341
Valeo......................... 14,630 711,841
-----------
10,726,497
-----------
GERMANY -- 5.1%
Allianz AG Holdings
Warrants*................... 70 63,282
Allianz Rfd. ................. 24 17,357
Allianz Holdings Reg'd. ...... 347 622,126
Altana AG..................... 232 125,757
Ava Allgemeine Handels........ 255 102,354
Bayer AG...................... 1,908 474,275
Bayerische Motoren Werke...... 166 91,122
Bilfinger & Berger Bau AG..... 630 291,148
Buderus AG.................... 216 106,227
Deutsche Bank AG.............. 8,390 413,220
Fielmann...................... 3,712 169,130
Gehe.......................... 1,626 750,263
Gehe AG Def del*.............. 406 184,399
Hoechst AG.................... 1,280 276,329
Hornbach...................... 208 279,800
Hornbach Baumarkt AG.......... 130 87,908
Krones AG PFD. ............... 456 217,661
Mannesmann.................... 2,412 737,015
Rhoen-Klinicum AG............. 360 424,387
Schering AG................... 7,820 546,897
Schering (Axel) Verlag AG*.... 245 138,208
Veba AG....................... 816 320,451
Veba AG Warrants*............. 1,220 161,908
Volkswagen AG................. 775 223,358
Volkswagen International
Finance Warrants*........... 370 27,562
-----------
6,852,144
-----------
HONG KONG -- 2.7%
Great Eagle*.................. 84,200 179,538
Hong Kong Land Holdings
(Singapore Reg.)............ 328,184 597,295
Hopewell Holdings Ord. ....... 3,402 2,880
Hutchison Whampoa............. 198,000 956,967
Shanghai Petrochemical Co.,
LTD. ....................... 778,000 243,810
Swire Pacific LTD. Cl-A....... 67,000 $ 510,842
Wharf Holdings................ 295,000 962,595
Yizheng Chemical Fibre Co. ... 708,000 247,034
-----------
3,700,961
-----------
ITALY -- 2.0%
Assicurazioni Generali........ 30,756 723,062
Banca Fideuram................ 126,770 144,016
Danieli & Co. ................ 14,954 45,488
Danieli Warrants*............. 875 642
Instituto Mobiliare
Italiano.................... 7,000 42,843
Instituto National
Assicurazioni............... 57,480 76,476
Italgas Ord. ................. 45,936 119,369
Ras Ord. ..................... 2,410 25,529
Rinascente.................... 16,800 95,479
Sasib di Risp................. 35,260 94,645
SME (Meridionale di
Finanziara)................. 39,100 97,541
Stet di Risp.................. 46,220 102,727
Stet Ord. .................... 134,480 372,071
Stet Warrants*................ 1,000 15,592
Telecom Italia SPA Ord. ...... 162,773 441,393
Telecom Italia SPA Risp....... 100,718 213,075
Union Cem March Emil SPA...... 8,642 51,519
-----------
2,661,467
-----------
JAPAN -- 22.8%
Advantest Co., LTD. .......... 8,000 302,154
Alps Electric Co., LTD. ...... 27,000 282,986
Amada Co. .................... 53,000 453,526
Canon, Inc. .................. 53,000 863,263
Citizen Watch Co. ............ 29,000 179,699
Dai Ichi Seiyaku.............. 49,000 717,144
Dai Nippon Screen
Manufacturing............... 42,000 282,561
Daifuku Co., LTD. ............ 11,000 123,210
Daiwa House Industry Co. ..... 47,000 721,157
DDI Corp. .................... 30 240,779
East Japan Railway............ 138 708,528
Fanuc Co. .................... 11,000 475,184
Hitachi LTD. ................. 80,000 797,875
Hitachi Zosen................. 45,000 181,647
Honda Motor Co. .............. 20,000 306,875
Inax.......................... 27,000 260,360
Ishihara Sangyo Kaisha
LTD. ....................... 24,000 71,384
</TABLE>
48
<PAGE> 50
AMERICAN SKANDIA TRUST
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
Ito-Yokado Co. ............... 15,000 $ 791,384
Kawada Kogyo.................. 9,000 72,765
Kokuyo Co., LTD. ............. 20,000 448,510
Komatsu LTD. ................. 77,000 588,008
Komori Corp. ................. 19,000 387,961
Kumagai Gumi Co. ............. 52,000 217,881
Kuraray Co., LTD. ............ 49,000 532,653
Kyocera....................... 20,000 1,647,684
Makita Electric............... 35,000 479,197
Matsushita Electric........... 52,000 810,150
Mauri Co. .................... 44,000 701,092
Mitsubishi Corp. ............. 31,000 353,084
Mitsubishi Heavy Industry..... 168,000 1,142,142
Mitsubishi Paper Mills
LTD. ....................... 38,000 200,035
Mitsui Fudosan................ 77,000 882,467
Mitsui Petrochemical
Industries.................. 22,000 166,704
Murata Manufacturing Co. ..... 15,000 568,309
National House Industrial
Co. ........................ 12,000 222,366
NEC Corp. .................... 70,000 767,542
Nippon Denso.................. 53,000 963,352
Nippon Hodo................... 14,000 246,208
Nippon Steel Corp. ........... 244,000 794,854
Nomura Securities............. 31,000 541,517
Pioneer Electronic Corp. ..... 29,000 492,889
Sangetsu Co. ................. 9,000 239,009
Sankyo Pharmaceuticals........ 24,900 578,967
Sega Enterprises.............. 9,700 344,609
Sekisui Chemical Co., LTD. ... 61,000 719,976
Sekisui House................. 43,000 532,901
Seven Eleven Japan Co.,
LTD. ....................... 6,000 429,861
Sharp Corp. .................. 57,000 753,497
Shin-Etsu Chemical Co. ....... 26,000 457,244
Sony Corp. ................... 15,400 739,782
Sumitomo Corp. ............... 88,000 801,841
Sumitomo Electric
Industries.................. 75,000 894,069
Sumitomo Forestry Co.,
LTD. ....................... 27,000 449,336
Taisho Pharmaceutical Co. .... 7,000 135,497
TDK Corp. .................... 14,000 637,828
Teijin........................ 91,000 436,070
Tokio Marine & Fire Insurance
Co. ........................ 28,000 321,228
Tokyo Electron................ 14,000 479,197
Tokyo Steel Manufacturing..... 17,000 290,941
Toppan Printing............... 19,000 248,923
Yurtec Corp. ................. 12,000 263,441
-----------
30,741,303
-----------
KOREA -- 1.0%
Hanil Securities Co.*......... 2,060 23,598
Korea Electric Power Corp. ... 6,600 254,438
Pohang Iron & Steel Co. ...... 4,000 400,143
Samsung Electronics Co. ...... 1,040 181,473
Samsung Electronics Co. Def
del*........................ 205 35,168
Samsung Electronics Co. Def
del PFD.*................... 593 55,469
Samsung Electronics Co.
PFD. ....................... 3,000 280,620
Yukong*....................... 3,471 147,174
Yukong Def del*............... 284 11,835
-----------
1,389,918
-----------
MALAYSIA -- 3.4%
Affin Holdings Berhad......... 397,000 700,349
Affin Holdings Warrants*...... 72,600 45,868
Aokam Perdana................. 92,000 228,349
Berjaya Sports Toto........... 181,000 320,788
Commerce Asset Holdings Berhad
Warrants*................... 33,000 87,323
Multi-Purpose Holdings........ 305,000 538,051
Renong Berhad................. 324,000 603,471
Technology Resources
Industry*................... 314,000 901,744
United Engineers.............. 178,000 1,131,897
-----------
4,557,840
-----------
MEXICO -- 0.6%
Cemex SA Cl-B................. 30,169 108,039
Fomento Ecenomico Mexicano
SA.......................... 26,269 61,735
Gruma SA de CV Bcp*........... 22,333 62,340
Grupo Embotellador de Mexico
Cl-B NPV.................... 3,360 5,254
Grupo Embotellador de Mexico
def del CPO (Cl-B/D/L)...... 32,797 170,408
Grupo Fin Banamex "L"......... 736 1,115
Grupo Financiero Banamex
Accivl Cl-B................. 14,739 22,323
Grupo Financiero Bancomer
Cl-L........................ 86 22
</TABLE>
49
<PAGE> 51
AMERICAN SKANDIA TRUST
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
Grupo Industrial Maseca SA de
CV Cl-B..................... 109,015 $ 72,851
Grupo Sidek SA de CV.......... 36,774 32,218
Tolmex Class Cl-B2............ 61,010 237,993
-----------
774,298
-----------
NETHERLANDS -- 9.8%
ABN AMRO Holdings NV.......... 10,260 395,914
Ahold NV...................... 8,060 288,656
AKZO Nobel NV................. 4,189 500,615
CSM........................... 15,774 695,208
Elsevier NV................... 223,520 2,639,489
Fortis Amev NV................ 6,817 371,708
Hagemeyer..................... 3,472 154,814
International Nederlanden
Groep NV.................... 15,140 837,258
Koninklijke Nederland......... 8,324 299,185
Nutricia Verenigde
Bedrijven................... 2,570 178,276
Polygram...................... 18,005 1,063,082
Royal Dutch Petroleum......... 15,370 1,876,495
Unilever...................... 5,850 761,025
Wolters Kluwer................ 36,654 3,233,272
-----------
13,294,997
-----------
NEW ZEALAND -- 1.0%
Air New Zealand LTD. ......... 113,000 328,504
Carter Holt Harvey............ 64,000 156,543
Fernz Corp. .................. 29,100 83,625
Fletcher Challange............ 85,000 238,584
Fletcher Challenge Forest
Division.................... 77,000 101,375
New Zealand Telecom........... 110,000 411,674
-----------
1,320,305
-----------
NORWAY -- 1.5%
Bergesen Cl-A Ord. ........... 3,710 84,291
Kvaerner Industrier........... 5,230 237,650
Norsk Hydro AS................ 22,420 940,534
Orkla Class Cl-A.............. 14,990 671,412
Saga Petroleum................ 3,650 48,276
-----------
1,982,163
-----------
PORTUGAL -- 0.3%
Jeronimo Martins.............. 7,140 361,519
-----------
SINGAPORE -- 2.4%
DBS Land...................... 88,000 275,906
Far East-Levingston........... 30,000 143,880
Jurong Shipyard............... 35,000 250,537
Keppel Corporation............ 16,000 130,565
Neptune Orient Lines.......... 76,000 88,132
Overseas Union Bank LTD.
Foreign..................... 19,000 119,685
Overseas Union Enterprises.... 40,000 244,810
Sembawang Shipyard............ 41,000 249,463
Singapore International
Airlines.................... 34,000 313,958
Singapore Land................ 56,000 366,786
Singapore Press Holdings
Foreign..................... 18,000 269,291
United Industrial Corp. ...... 134,000 129,492
United Overseas Bank.......... 63,400 599,055
United Overseas Bank
Warrants*................... 17,092 80,750
-----------
3,262,310
-----------
SPAIN -- 2.3%
Banco de Santander SA......... 7,440 293,409
Banco Popular Espanol......... 1,280 190,287
Centros Comerciales Pryca
Ord. ....................... 22,506 418,223
Empresa Nacional de
Electric.................... 13,768 679,985
Fomentos de Construcciones
Y Contra.................... 2,360 200,760
Gas Natural SDG............... 3,523 420,735
Iberdrola SA.................. 35,623 268,320
Repsol SA..................... 13,924 438,144
Sevillana de Electricidad..... 22,045 135,642
-----------
3,045,505
-----------
SWEDEN -- 2.1%
AGA AB Cl-B (Zurich Reg.)..... 2,500 29,860
ASEA AB Cl-A.................. 3,260 281,050
Astra AB Cl-B................. 29,990 903,065
Atlas Copco AB Cl-B........... 18,700 259,694
Electrolux Co. ............... 9,860 448,749
Esselte....................... 3,080 38,326
Frigoskandia Cl-B............. 500 2,097
Hennes & Mauritz AB Cl-B...... 4,180 244,841
Sandvik AB Cl-A............... 3,610 65,024
Sandvik AB Cl-B............... 19,140 347,388
</TABLE>
50
<PAGE> 52
AMERICAN SKANDIA TRUST
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
Scribona Cl-B................. 1,510 $ 11,108
Stora Kopparbergs Cl-B........ 13,500 182,839
-----------
2,814,041
-----------
SWITZERLAND -- 3.9%
Brown, Boveri & Cie Cl-A...... 1,167 1,208,360
Ciba Geigy AG................. 420 307,922
CS Holdings................... 3,310 303,340
Nestle SA..................... 968 1,008,193
Roche Holdings AG............. 175 1,127,953
Sandoz AG..................... 807 556,600
Swiss Bank Corp. ............. 1,340 474,913
Union Bank of Switzerland..... 280 290,167
-----------
5,277,448
-----------
THAILAND -- 1.2%
Advanced Information
Services -- Foreign......... 7,900 117,132
Bangkok Bank.................. 32,500 358,112
Bank of Ayudhya............... 31,000 151,955
Land and House Public Co. .... 4,400 92,688
Siam Cement Public Co. ....... 4,300 274,531
Siam Commercial Bank.......... 17,300 165,396
Thai Farmer Bank Foreign...... 29,200 279,165
United Communications
Industries -- Foreign....... 8,900 129,795
-----------
1,568,774
-----------
UNITED KINGDOM -- 15.0%
Abbey National................ 113,000 841,258
Argos......................... 69,160 475,273
Argyll Group.................. 97,660 521,988
Asda Group.................... 290,450 438,935
British Airports
Authorities................. 15,440 120,842
British Gas................... 74,210 341,756
British Petroleum Co. ........ 43,840 314,174
Cable & Wireless.............. 113,000 772,951
Cadbury Schweppes............. 93,456 682,378
Caradon PLC................... 187,700 704,663
Clyde Petroleum............... 45,090 30,126
Coats Viyella................. 53,270 157,616
Compass Group PLC............. 22,000 129,838
East Midlands Electricity..... 44,385 453,290
Eastern Electricity........... 13,140 135,867
First National Finance Corp.,
PFD. ....................... 12,820 18,354
First National Finance
Corp. ...................... 5,000 12,130
Glaxo Wellcome PLC............ 70,000 859,090
Grand Metropolitan Ord. ...... 124,300 762,255
Guinness Ord. ................ 102,640 772,294
Heath......................... 10,000 32,292
Heywood Williams Group
Ord. ....................... 22,010 78,778
Hillsdown Holdings............ 55,160 157,943
Kingfisher.................... 84,950 574,324
Ladbroke Group................ 83,000 223,136
Laing (John).................. 60,000 197,572
London Electricity Ord. ...... 62,770 641,050
National Westminster Ord. .... 182,670 1,586,590
Rank Organisation PLC,
Reg'd. ..................... 92,120 581,767
Reed International............ 109,370 1,536,257
Rolls-Royce................... 46,140 128,079
RTZ Corp Ord., Reg'd. ........ 49,600 646,994
Sears Holdings................ 44,490 70,419
Shell Transport & Trading Co.,
Ord. ....................... 73,630 879,629
Smith David Holdings.......... 41,950 432,426
Smithkline Beecham............ 179,220 1,590,837
South Western Electricity..... 12,850 136,957
Spring Ram Corp. ............. 12,000 6,872
T & N Corp. .................. 115,680 310,072
Tesco......................... 83,000 382,896
Tomkins Ord. ................. 231,220 827,585
United News and Media PLC..... 75,470 624,285
-----------
20,191,838
-----------
TOTAL FOREIGN SECURITIES
(COST $118,492,896)............. 121,875,227
-----------
AMERICAN DEPOSITORY RECEIPTS -- 2.7%
A.F.P. Provida SA*............ 1,152 30,960
Banco de Galicia Buenos Aires
SA.......................... 5,261 82,861
Buenos Aires Embotelladora.... 2,878 72,310
Chilectra Metropolitana SA.... 2,386 121,166
Chilgener SA.................. 2,020 63,883
Cifra SA de CV NPV............ 358,754 494,722
Companhia Energetica de Minas
Geras....................... 6,068 119,873
Compania de Telefonos de
Chile SA.................... 699 56,881
</TABLE>
51
<PAGE> 53
AMERICAN SKANDIA TRUST
T. ROWE PRICE INTERNATIONAL EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<S> <C> <C>
Electrobras-Centrais Eletr
Bras........................ 11,248 $ 152,613
Empresa National de
Electricidad SA............. 7,797 206,621
Enersis SA.................... 2,324 68,558
Enron Global Power &
Pipeline.................... 1,356 32,205
Huaneng Power International
Inc. ....................... 14,000 257,250
Panamerica Beverages.......... 5,210 156,300
Repsol SA..................... 110 3,479
Sociedad Comercial del
Plata*...................... 1,640 40,521
Telebras...................... 23,183 791,375
Telecome Argentina Cl-B....... 941 42,816
Telecomunicacoes Brasileiras
SA.......................... 217 7,408
Telefonica de Argentina*...... 11,020 272,745
Telefonos de Mexico........... 20,594 610,097
-----------
TOTAL AMERICAN DEPOSITORY RECEIPTS
(COST $4,702,373)............... 3,684,644
-----------
AMERICAN DEPOSITORY SECURITIES -- 0.4%
Banco Frances del Rio de
la Plata.................... 2,299 41,382
Cervecerias Unidas............ 3,628 96,596
Cesp-Cia Energetica de Sao
Paolo*...................... 5,020 57,128
Sociedad Anoni................ 11,440 215,930
Transportadora de Gas del
Sur......................... 2,632 27,636
Usinas Siderurgicas de Minas
Gerais SA................... 11,096 124,164
-----------
TOTAL AMERICAN DEPOSITORY
SECURITIES
(COST $664,465)................. 562,836
-----------
GLOBAL DEPOSITORY RECEIPTS -- 0.3%
Samsung Electronics Co. *..... 605 32,216
Samsung Electronics
Co. def del*................ 7,060 375,945
-----------
TOTAL GLOBAL DEPOSITORY RECEIPTS
(COST $381,285)................. 408,161
-----------
GLOBAL DEPOSITORY SECURITIES -- 0.2%
Grupo Financiero Bancomer
SA Cl-B..................... 2,330 $ 13,689
Grupo Televisia............... 10,789 219,826
-----------
TOTAL GLOBAL DEPOSITORY SECURITIES
(COST $533,840)................. 233,515
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
IN LOCAL
CURRENCY****
MATURITY (000)
--------- ------------
<S> <C> <C> <C>
FOREIGN BONDS -- 0.0%
BELGIUM 0.0%
Kredietbank NV
5.75%......... 11/30/03 900 28,522
------------
ITALY 0.0%
Danieli & Co.
7.25%......... 01/01/00 5,250 2,631
------------
TOTAL FOREIGN BONDS
(COST $29,722).............. 31,153
------------
TOTAL INVESTMENTS
(COST $124,804,581**) --
94.0%....................... 126,795,536
OTHER ASSETS LESS
LIABILITIES -- 6.0%......... 8,103,021
------------
NET ASSETS -- 100.0%.......... $134,898,557
============
The aggregate unrealized appreciation (depreciation) on a
tax basis is as follows:
Gross appreciation...................... $ 10,592,173
Gross depreciation...................... (8,601,218)
------------
Net appreciation........................ $ 1,990,955
============
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing securities.
** Also cost for Federal income tax purposes.
*** Closed-end funds.
**** Currency of countries indicated.
See Notes to Financial Statements.
52
<PAGE> 54
AMERICAN SKANDIA TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1995 (UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
INVESCO Founders T. Rowe Price
JanCap Equity Capital International
Growth Income Appreciation Equity
Portfolio Portfolio Portfolio Portfolio
--------- --------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities at value (A) (Note 1).................... $324,593 $106,511 $50,909 $126,795
Cash in bank, including foreign currency holdings.................. 0 0 2 8,053
Receivable for securities sold..................................... 292 255 652 223
Receivable for dividends and interest.............................. 286 571 26 667
Receivable for fund shares sold.................................... 308 267 32 0
Other assets....................................................... 3 1 0 2
-------- -------- ------- --------
TOTAL ASSETS................................................... 325,482 107,605 51,621 135,740
-------- -------- ------- --------
LIABILITIES:
Payable for securities purchased................................... 4,604 2,217 2,376 327
Payable for fund shares redeemed................................... 0 0 0 271
Unrealized depreciation on foreign currency exchange contracts and
futures (Note 4)................................................. 316 0 0 0
Accrued expenses (Note 2).......................................... 284 99 43 243
-------- -------- ------- --------
TOTAL LIABILITIES.............................................. 5,204 2,316 2,419 841
-------- -------- ------- --------
NET ASSETS............................................................. $320,278 $105,289 $49,202 $134,899
======== ======== ======= ========
COMPONENTS OF NET ASSETS
Common stock (unlimited number of shares authorized, $.001 par value
per share)........................................................... $ 24 $ 10 $ 4 $ 14
Additional paid-in capital............................................. 266,977 95,079 40,913 133,469
Undistributed net investment income.................................... 766 1,511 1 1,172
Accumulated net realized gain (loss) on investments and foreign
currency
transactions......................................................... (6,238) 424 (351) (1,760)
Accumulated net unrealized appreciation (depreciation) on investments,
foreign currency transactions, and forward currency contracts........ 58,749 8,265 8,635 2,004
-------- -------- -------- --------
NET ASSETS............................................................. $320,278 $105,289 $49,202 $134,899
======== ======== ======== ========
Shares of common stock outstanding..................................... 23,599 9,456 3,877 13,512
Net asset value, offering and redemption price per share (Note 1)...... $ 13.57 $ 11.13 $ 12.69 $ 9.98
======== ======== ======== ========
(A) Investments at cost................................................ $265,529 $ 98,246 $42,274 $124,805
======== ======== ======== ========
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
53
<PAGE> 55
American SKANDIA TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
INVESCO Founders T. Rowe Price
JanCap Equity Capital International
Growth Income Appreciation Equity
Portfolio Portfolio Portfolio Portfolio
--------- --------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest.............................................................. $ 1,142 $ 1,138 $ 170 $ 302
Dividends (Note 1).................................................... 1,401 773 53 1,526
------- ------- ------ -------
Total Investment Income........................................... 2,543 1,911 223 1,828
------- ------- ------ -------
EXPENSES
Investment advisory fees (Note 2)..................................... 1,213 308 166 584
Shareholder servicing fees (Note 2)................................... 135 41 18 58
Administration and accounting fees.................................... 121 42 37 58
Custodian fees........................................................ 28 12 9 97
Professional fees..................................................... 20 4 2 7
Registration fees..................................................... (28) (13) (4) (31)
Trustees' fees and expenses (Note 2).................................. 5 1 1 2
Insurance fees........................................................ 4 2 1 3
Amortization of organization costs (Note 1)........................... 1 0 0 0
Miscellaneous expenses................................................ 3 3 2 24
------- ------- ------ -------
Total Expenses.................................................... 1,502 400 232 802
------- ------- ------ -------
Net Investment Income (Loss).............................................. 1,041 1,511 (9) 1,026
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on investments and foreign currency
transactions........................................................ 8,890 679 688 (1,495)
Net change in unrealized appreciation (depreciation) on investments,
foreign currency transactions, and forward currency contracts....... 44,599 10,013 5,868 5,571
------- ------- ------ -------
Net Increase in Net Assets resulting from Operations.................. $54,530 $12,203 $6,547 $ 5,102
======= ======= ====== =======
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
54
<PAGE> 56
AMERICAN SKANDIA TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
JanCap Growth Portfolio
------------------------------
Six Months Year
Ended Ended
June 30, 1995 December 31,
(Unaudited) 1994
------------- ------------
<S> <C> <C>
FROM OPERATIONS
Net investment income............................................................. $ 1,041 $ 1,245
Net realized gain (loss) on investments and foreign currency transactions......... 8,890 (15,037)
Net change in unrealized appreciation (depreciation) on investments,
foreign currency transactions, and forward currency contracts................... 44,599 4,596
-------- --------
Net Increase (Decrease) in Net Assets from Operations........................... 54,530 (9,196)
-------- --------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income.............................. (1,363) (447)
Distributions to shareholders from
capital gains................................................................... 0 0
-------- --------
Total Dividends and Distributions
to Shareholders............................................................. (1,363) (447)
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold......................................................... 43,979 117,459
Net asset value of shares issued in reinvestment of dividends
and distributions............................................................... 1,363 447
Cost of shares redeemed........................................................... (23,876) (20,470)
-------- --------
Increase in Net Assets from Capital Share Transactions.......................... 21,466 97,436
-------- --------
Total Increase in Net Assets.................................................. 74,633 87,793
-------- --------
NET ASSETS
Beginning of Period............................................................... 245,645 157,852
-------- --------
End of Period..................................................................... $320,278 $245,645
======== ========
SHARES ISSUED AND REDEEMED
Shares sold....................................................................... 3,590 10,265
Shares issued in reinvestment of dividends and distributions...................... 119 37
Shares redeemed................................................................... (2,011) (1,801)
-------- --------
Net Increase in Shares Outstanding.............................................. 1,698 8,501
======== ========
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
55
<PAGE> 57
AMERICAN SKANDIA TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Founders Capital
INVESCO Equity Income Appreciation T. Rowe Price International
Portfolio Portfolio Equity Portfolio
---------------------------- ---------------------------- ----------------------------
Six Months Year Six Months Year Six Months Year
Ended Ended Ended Ended Ended Ended
June 30, 1995 December 31, June 30, 1995 December 31, June 30, 1995 December 31,
(Unaudited) 1994(1) (Unaudited) 1994(1) (Unaudited) 1994(1)
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss)..... $ 1,511 $ 1,056 $ (9) $ 290 $ 1,026 $ 268
Net realized gain (loss) on
investments
and foreign currency
transactions................... 679 (255) 688 (1,039) (1,495) (16)
Net change in unrealized
appreciation (depreciation) on
investments, foreign currency
transactions, and forward
currency contracts............. 10,013 (1,748) 5,868 2,767 5,571 (3,567)
-------- ------- ------- ------- -------- --------
Net Increase (Decrease) in Net
Assets from Operations....... 12,203 (947) 6,547 2,018 5,102 (3,315)
-------- ------- ------- ------- -------- --------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Dividends to shareholders from
net investment income.......... (1,056) 0 (280) 0 (121) 0
Distributions to shareholders
from capital gains............. 0 0 0 0 (249) 0
------- ------- ------- ------- -------- --------
Total Dividends and
Distributions to
Shareholders............... (1,056) 0 (280) 0 (370) 0
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold........ 29,454 66,925 17,597 29,373 33,583 122,535
Net asset value of shares issued
in reinvestment of dividends
and distributions.............. 1,056 0 280 0 370 0
Cost of shares redeemed.......... (1,569) (777) (3,501) (2,832) (12,537) (10,469)
-------- ------- -------- ------- -------- --------
Increase in Net Assets from
Capital Share Transactions... 28,941 66,148 14,376 26,541 21,416 112,066
-------- ------- ------- ------- -------- --------
Total Increase in Net
Assets..................... 40,088 65,201 20,643 28,559 26,148 108,751
-------- ------- ------- ------- -------- --------
NET ASSETS
Beginning of period.............. 65,201 0 28,559 0 108,751 0
-------- ------- ------- ------- -------- --------
End of period.................... $105,289 $65,201 $49,202 $28,559 $134,899 $108,751
======== ======= ======= ======= ======== ========
SHARES ISSUED AND REDEEMED
Shares sold...................... 2,812 6,769 1,523 2,908 3,473 12,383
Shares issued in reinvestment of
dividends and distributions.... 105 0 26 0 41 0
Shares redeemed.................. (151) (79) (306) (274) (1,311) (1,074)
-------- ------- ------- ------- -------- --------
Net Increase in Shares
Outstanding.................. 2,766 6,690 1,243 2,634 2,203 11,309
======== ======= ======= ======= ========= ========
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commenced operations on January 4, 1994.
See Notes to Financial Statements.
56
<PAGE> 58
AMERICAN SKANDIA TRUST
FINANCIAL HIGHLIGHTS
PER SHARE DATA (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
JanCap Growth Portfolio
-----------------------------------------------------
Six Months For the Year Ended
Ended December 31,
June 30, 1995 -----------------------------------
(Unaudited) 1994 1993 1992(2)
------------- -------- -------- -------
<S> <C> <C> <C> <C>
Net Asset Value at Beginning of Period............................ $ 11.22 $ 11.78 $ 10.53 $ 10.00
-------- -------- -------- -------
Increase (Decrease) from Investment Operations
Net Investment Income (Loss).................................. 0.04 0.06 0.03 (0.01)
Net Realized & Unrealized Gains (Losses) on Investments and
Foreign Currency Transactions............................... 2.37 (0.59) 1.22 0.54
-------- -------- -------- -------
Total Increase (Decrease) From Investment Operations...... 2.41 (0.53) 1.25 0.53
-------- -------- -------- -------
Less Dividends and Distributions
Dividends from Net Investment Income.......................... (0.06) (0.03) 0.00 0.00
Distributions from Net Realized Capital Gains................. 0.00 0.00 0.00 0.00
-------- -------- -------- -------
Total Dividends and Distributions......................... (0.06) (0.03) 0.00 0.00
-------- -------- -------- -------
Net Asset Value at End of Period.................................. $ 13.57 $ 11.22 $ 11.78 $ 10.53
-------- -------- -------- -------
Total Return...................................................... 21.58% (4.51%) 11.87% 5.30%
Ratios/Supplemental Data
Net Assets at End of Period (in 000's)........................ $320,278 $245,645 $157,852 $15,218
Ratios of Expenses to Average Net Assets:
After Advisory Fee Waiver and Expense Reimbursement......... 1.11%(1) 1.18% 1.22% 1.33%(1)
Before Advisory Fee Waiver and Expense Reimbursement........ 1.11%(1) 1.18% 1.22% 2.21%(1)
Ratios of Net Investment Income (Loss) to Average Net Assets:
After Advisory Fee Waiver and Expense Reimbursement......... 0.77%(1) 0.62% 0.35% (0.90%)(1)
Before Advisory Fee Waiver and Expense Reimbursement........ 0.77%(1) 0.62% 0.35% (1.78%)(1)
Portfolio Turnover Rate........................................... 53.57% 93.92% 92.16% 1.52%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
(2) Commenced operations on November 6, 1992.
See Notes to Financial Statements.
57
<PAGE> 59
AMERICAN SKANDIA TRUST
FINANCIAL HIGHLIGHTS
PER SHARE DATA (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
INVESCO Equity Founders Capital T. Rowe Price International
Income Portfolio Appreciation Portfolio Equity Portfolio
---------------------------- ---------------------------- ----------------------------
Six Months For the Six Months For the Six Months For the
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, 1995 December 31, June 30, 1995 December 31, June 30, 1995 December 31,
(Unaudited) 1994(2) (Unaudited) 1994(2) (Unaudited) 1994(2)
------------- ------------ ------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value at Beginning of
Period.............................. $ 9.75 $ 10.00 $ 10.84 $ 10.00 $ 9.62 $ 10.00
-------- ------- ------- ------- -------- --------
Increase (Decrease) from
Investment Operations
Net Investment Income (Loss)...... 0.15 0.16 (0.02) 0.11 0.12 0.02
Net Realized & Unrealized Gains
(Losses) on Investments and
Foreign Currency Transactions... 1.38 (0.41) 1.96 0.73 0.27 (0.40)
-------- ------- ------- ------- -------- --------
Total Increase (Decrease) From
Investment Operations....... 1.53 (0.25) 1.94 0.84 0.39 (0.38)
-------- ------- ------- ------- -------- --------
Less Dividends and Distributions
Dividends from Net
Investment Income............... (0.15) 0.00 (0.09) 0.00 (0.01) 0.00
Distributions from Net Realized
Capital Gains................... 0.00 0.00 0.00 0.00 (0.02) 0.00
-------- ------- ------- ------- -------- --------
Total Dividends and
Distributions............... (0.15) 0.00 (0.09) 0.00 (0.03) 0.00
-------- ------- ------- ------- -------- --------
Net Asset Value at End of Period...... $ 11.13 $ 9.75 $ 12.69 $ 10.84 $ 9.98 $ 9.62
-------- ------- ------- ------- -------- --------
Total Return.......................... 15.82% (2.50%) 18.04% 8.40% 4.10% (3.80%)
Ratios/Supplemental Data
Net Assets at End of Period (in
000's).......................... $105,289 $65,201 $49,202 $28,559 $134,899 $108,751
Ratios of Expenses to Average Net
Assets:
After Advisory Fee Waiver and
Expense Reimbursement......... 0.97%(1) 1.14%(1) 1.26%(1) 1.30%(1) 1.37%(1) 1.75%(1)
Before Advisory Fee Waiver and
Expense Reimbursement......... 0.97%(1) 1.14%(1) 1.26%(1) 1.55%(1) 1.37%(1) 1.77%(1)
Ratios of Net Investment Income (Loss)
to Average Net Assets:
After Advisory Fee Waiver and
Expense Reimbursement......... 3.69%(1) 3.41%(1) (0.05%)(1) 2.59%(1) 1.76%(1) 0.45%(1)
Before Advisory Fee Waiver and
Expense Reimbursement......... 3.69%(1) 3.41%(1) (0.05%)(1) 2.34%(1) 1.76%(1) 0.43%(1)
Portfolio Turnover Rate............... 42.33% 62.87% 29.37% 197.93% 9.25% 15.70%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
(2) Commenced operations on January 4, 1994.
See Notes to Financial Statements.
58
<PAGE> 60
AMERICAN SKANDIA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
American Skandia Trust (the "Trust"), was organized under the laws of the
Commonwealth of Massachusetts on October 31, 1988, as a "Massachusetts Business
Trust". The Trust is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The Trust
operates as a series company currently issuing nineteen classes of shares of
beneficial interest, called portfolios. These financial statements report on
four of the nineteen portfolios: JanCap Growth Portfolio ("JanCap"), INVESCO
Equity Income Portfolio ("INVESCO"), Founders Capital Appreciation Portfolio
("Founders") and T. Rowe Price International Equity Portfolio ("T. Rowe").
The following is a summary of the Trust's significant accounting policies:
SECURITY VALUATION
JanCap, INVESCO, Founders, and T. Rowe: Securities are valued at the close of
regular trading on each business day the New York Stock Exchange ("NYSE") is
open. Securities, including options written, are valued at the last sale price
on the securities exchange or securities market on which such securities
primarily are traded. Securities not listed on an exchange or securities market,
or securities on which there were no transactions, are valued at the average of
the most recent bid and asked prices. Any securities or other assets for which
recent market quotations are not readily available are valued at fair value as
determined in good faith by the Board of Trustees. For the Portfolios that hold
foreign securities, the value of securities and other assets and liabilities
denominated in foreign currencies is translated daily into U.S. dollars at a
rate of exchange determined prior to the close of the NYSE.
Short-term obligations with less than sixty days remaining to maturity are
valued at amortized cost. Short-term obligations with more than sixty days
remaining to maturity will be valued at current market value until the sixtieth
day prior to maturity, and will then be valued on an amortized cost basis based
on the value on such date.
FOREIGN CURRENCY TRANSLATION AND FORWARD FOREIGN CURRENCY CONTRACTS
The Trust's investment valuations, other assets, and liabilities initially
expressed in foreign currencies are converted each business day into U.S.
dollars based upon current exchange rates. Purchases and sales of foreign
investments and income and expenses are converted into U.S. dollars based upon
currency exchange rates prevailing on the respective dates of such transactions.
Gains and losses attributable to changes in foreign currency exchange rates are
recorded for financial statement purposes as net realized gains and losses on
investments and foreign currency transactions. Forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as unrealized
until the contract settlement date.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the trade date. Realized gains and
losses from security transactions are recognized on the FIFO cost basis.
Dividend income is recognized on the ex-dividend date. Interest income is
accrued daily. Gains or losses on premiums from expired options are recognized
on the date of expiration.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
JanCap, INVESCO, Founders and T. Rowe: Dividends and distributions arising from
net investment income and net short-term and long-term capital gains, if any,
are declared and paid annually.
ORGANIZATION COSTS
The Trust bears all costs in connection with its organization including the
initial fees and expenses of registering and qualifying its shares for
distribution under Federal and state securities regulations. All such costs are
being
59
<PAGE> 61
AMERICAN SKANDIA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
amortized on a straight-line basis over a period of five years from May 1, 1992.
TAX MATTERS
It is the Trust's policy to comply with the requirements of the Internal Revenue
Code pertaining to regulated investment companies and to distribute all of its
taxable income, as well as any net realized gains to its shareholders.
Therefore, no federal income tax provision has been made. Foreign taxes have
been provided for dividend and interest income earned on foreign investments in
accordance with the applicable country's tax rates and, to the extent
unrecoverable, are recorded as a reduction of investment income.
2. INVESTMENT MANAGEMENT AGREEMENTS, INVESTMENT
SUB-ADVISORY AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
The Portfolios have entered into Investment Management Agreements with American
Skandia Investment Services, Inc., formerly American Skandia Life Investment
Management, 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 entities as sub-advisors for their respective Portfolios: Janus
Capital Corporation for JanCap, INVESCO Trust Co. for INVESCO, Founders Asset
Management Inc. for Founders and Rowe Price-Fleming International, a United
Kingdom Corporation, for T. Rowe. The Investment Manager receives a fee computed
daily and paid monthly based on an annual rate of .90%, .75%, .90%, and 1.00%,
of the average daily net assets of the JanCap, INVESCO, Founders, and T. Rowe
Portfolios, respectively.
The Investment Manager pays each sub-advisor a fee computed daily and payable
monthly based on an annual rate of .60%, .50%, .65%, and .75%, of the average
daily net assets of the JanCap, INVESCO, Founders, and T. Rowe Portfolios,
respectively. The annual rates of the fees payable by the Investment Manager to
the sub-advisors of all Portfolios are reduced for Portfolio net assets in
excess of specified levels. The Investment Manager has agreed to reimburse each
Portfolio for the amount, if any, by which the total operating and management
expenses (after fee waivers and expense reimbursements) of the Portfolio for any
fiscal year exceed the most restrictive state blue sky expense limitation in
effect from time to time, to the extent required by such limitation. The
Investment Management Agreement with each Portfolio provides that the Investment
Manager will reimburse the Portfolio to prevent its expenses from exceeding a
specific percentage limit. During the six months ended June 30, 1995, the
Investment Manager did not have to reimburse any of the Portfolios pursuant to
those provisions.
The Trust has entered into an agreement for the sale of shares with American
Skandia Life Assurance Corporation ("ASLAC") pursuant to which it pays ASLAC a
shareholder servicing fee at an annual rate of 0.1% of each Portfolio's average
net assets.
Certain officers and/or trustees of the Trust are also officers and/or directors
of the Investment Manager. During the six months ended June 30, 1995, the Trust
made no direct payments to its officers or interested Trustees.
3. PURCHASES AND SALES OF SECURITIES
The cost of security purchases and proceeds from the sales of securities,
excluding short-term obligations, during the six months ended June 30, 1995 were
$212,467,876 and $130,051,155 for JanCap, $60,753,710 and $33,678,535 for
INVESCO, $26,042,526 and $9,377,714 for Founders, and $41,660,594 and $9,960,793
for T. Rowe.
60
<PAGE> 62
AMERICAN SKANDIA TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------
4. FINANCIAL INSTRUMENTS
OFF-BALANCE SHEET RISK
Certain Portfolios, as permitted by the Trust's prospectus, may trade financial
instruments with off-balance sheet risk in the normal course of investing
activities and to assist in managing exposure to market risks such as changes in
interest rates and foreign currency exchange rates.
The financial instruments include forward foreign currency exchange contracts.
The notional or contractual amounts of these instruments represent the
investment the Trust has in particular classes of financial instruments and do
not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
DERIVATIVE FINANCIAL INSTRUMENTS HELD OR ISSUED FOR PURPOSES OTHER THAN TRADING
JanCap entered into foreign currency exchange contracts ("FCECs") during the six
months ended June 30, 1995. The Portfolio will generally enter into forward
foreign currency exchange contracts as a way of managing foreign exchange rate
risk. A Portfolio may enter into these contracts to fix the U.S. dollar value of
a security that it has agreed to buy or sell for the period between the date the
trade was entered into and the date the security is delivered and paid for. A
Portfolio may also use these contracts to hedge, in whole or in part, the U.S.
dollar value of securities it already owns denominated in specific foreign
currencies. At June 30, 1995, the following contract was outstanding:
<TABLE>
<CAPTION>
Number of
Portfolio Description Contracts Face Amount
- --------- ----------- ---------- -----------
<S> <C> <C> <C>
JanCap FCEC 1 $ 6,318,668
</TABLE>
5. CAPITAL LOSS CARRYOVERS
At December 31, 1994, for Federal income tax purposes, the following Portfolios
had capital loss carryovers which may be applied against future net taxable
realized gains of each succeeding year until the earlier of its utilization or
expiration:
<TABLE>
<CAPTION>
Expires in:
--------------------------------
2000 2001 2002
------ ------- -----------
<S> <C> <C> <C>
JanCap................... $4,759 $86,855 $14,970,660
INVESCO.................. 0 0 255,091
Founders................. 0 0 1,024,019
</TABLE>
61
<PAGE> 63
American Skandia Life -----------------
Assurance Corporation BULK RATE
Tower One Corporate Drive U.S. POSTAGE
Shelton, CT 06484 PAID
PERMIT NO. 552
HACKENSACK, NJ
-----------------
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