Supplement to Prospectus Dated May 1, 2000
Supplement dated September 25, 2000
This Supplement should be retained with the current Prospectus for your variable
annuity contract issued by American Skandia Life Assurance Corporation
("American Skandia"). If you do not have a current prospectus please contact
American Skandia at 1-800-SKANDIA.
A. PROPOSED SUBSTITUTION
American Skandia has filed an application with the Securities and Exchange
Commission ("SEC") to substitute the following "Replaced Portfolio/Sub-account"
with the "Substitute Portfolio/Sub-account":
<TABLE>
<CAPTION>
--------------------------------------------------------- ---------- ---------------------------------------------------------------
REPLACED PORTFOLIO/SUB-ACCOUNT SUBSTITUTE PORTFOLIO/SUB-ACCOUNT
--------------------------------------------------------- ---------- ---------------------------------------------------------------
<S> <C>
Alger American Growth portfolio of The Alger American Fund/AA AST Alger Growth portfolio of American Skandia Trust/AST
Growth Sub-account Alger Growth Sub-account
--------------------------------------------------------------- -------- -----------------------------------------------------------
--------------------------------------------------------------- -------- -----------------------------------------------------------
Alger American MidCap Growth portfolio of The Alger American AST Alger Mid-Cap Growth portfolio of American Skandia
Fund/AA MidCap Growth Sub-account Trust/AST Alger Mid-Cap Growth Sub-account
--------------------------------------------------------------- -------- -----------------------------------------------------------
</TABLE>
As part of the Substitution, American Skandia is seeking permission to allow
transfers from the Replaced Portfolios/Sub-accounts to any other investment
options available under the Annuity for a period beginning from the date of this
Supplement without the imposition of any transfer fee. Additionally, American
Skandia Life Assurance Corporation will not exercise any rights reserved under
the Annuity to impose additional restrictions on transfers until at least 30
days after the Substitutions. Under the proposed substitution, any such
transfers would not count in determining whether the maximum number of free
transfers has been exceeded. Furthermore, under the proposed substitution, the
transfer of Account Value from the Replaced Portfolio/Sub-account to the
Substitute Portfolio/Sub-account would likewise not be subject to a transfer fee
nor count in determining whether the maximum number of free transfers have been
exceeded. The proposed substitution will not affect your rights or our
obligations under the Annuity. American Skandia will bear any expenses in
connection with the proposed substitution.
Contract Owners with Account Value allocated to a Replaced Portfolio/Sub-account
may remain in the Sub-account until the earliest to occur of: (1) the date they
transfer Account Value out of the Replaced Portfolio/Sub-account; or (2) the
date the proposed substitution is completed. On or after the date of the
substitution, the Replaced Portfolio/Sub-account will no longer exist. Contract
Owners will no longer be able to allocate Account Value to the Replaced
Portfolio/Sub-account after the substitution date.
B. INVESTMENT OBJECTIVES AND POLICIES
The investment objective (in italics) and a short, summary description of the
key policies for each of the Substitute Portfolios follows. The AST Alger Growth
and AST Alger Mid-Cap Growth portfolios of American Skandia Trust are not
currently available; however, they will be available at the time the
Substitution is effective.
<TABLE>
<CAPTION>
------------------- ------------------------------------------------------------------------------------------------ ---------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
------------------- ------------------------------------------------------------------------------------------------ ---------------
------------------- ------------------------------------------------------------------------------------------------ ---------------
<S> <C> <C>
AST Alger Growth: seeks long-term capital growth. The Fred Alger
Portfolio invests primarily in equity securities, such as Management, Inc.
common or preferred stocks, that are listed on U.S. exchanges
or in the over-the-counter market. The Portfolio invests
primarily in growth stocks of "high unit volume growth"
companies (vital, creative companies that offer goods or
services to a rapidly expanding marketplace) and "positive
LARGE CAP life cycle change" companies (companies experiencing a major
GROWTH change that is expected to produce advantageous results). The
Portfolio focuses on growing companies that generally have
broad product lines, markets, financial resources and depth of
management. The Portfolio normally invests at least 65% of its
total assets in equity securities of companies that, at the
time of purchase of the securities, have total market
capitalizations of $1 billion or greater. The Portfolio also
may invest up to 35% of its total assets in equity securities
of companies that, at the time of purchase, have total market
capitalizations of less than $1 billion.
------------------- ------------------------------------------------------------------------------------------------ ---------------
AST Alger Mid-Cap Growth: seeks long-term capital growth. The Fred Alger
Portfolio invests primarily in equity securities, such as Management, Inc.
common or preferred stocks, that are listed on U.S. exchanges
or in the over-the-counter market. Under normal circumstances,
MID CAP the Portfolio invests primarily in the equity securities of
GROWTH companies having a market capitalization within the range of
companies in the S&P MidCap 400 Index. The Portfolio may
invest up to 35% of its total assets in equity security of
companies that, at the time of purchase, have total market
capitalization outside the range of companies in the S&P
MidCap 400 Index and in excess of that amount (up to 100% of
its assets) during temporary defensive periods.
------------------- ------------------------------------------------------------------------------------------------ ---------------
</TABLE>
C. RYDEX/PROFUNDS 'CUT-OFF' TIMES
The following paragraph replaces the corresponding paragraph under the "Managing
Your Account Value" section in your Annuity prospectus:
MAY I AUTHORIZE MY FINANCIAL REPRESENTATIVE TO MANAGE MY ACCOUNT?
We may also establish different "cut-off times" by which we must receive all
financial transactions for certain underlying portfolios. Currently, the
portfolios of Rydex Variable Trust and ProFund VP are subject to this
restriction. Financial transactions involving a Rydex or ProFund VP Sub-account
must be received by us no later than one hour prior to any announced closing
time of the applicable securities exchange (generally, 3:00 p.m. Eastern time)
to be processed on the current Valuation Day. For transactions submitted
electronically through American Skandia's Internet website
(americanskandia.com), the "cut-off" time for financial transactions involving a
Rydex or ProFund VP Sub-account will be extended to 1/2 hour prior to any
announced closing (generally, 3:30 p.m. Eastern time). If you request a
transaction involving the purchase or redemption of Units in one of the Rydex or
ProFund VP Sub-accounts after the applicable "cut-off" time, we will deem your
request as received by us on the next Valuation Day. You may be required to
submit a new request on the following day.
The following paragraph replaces the corresponding paragraph under the "WHEN DO
YOU PROCESS AND VALUE TRANSACTIONS?" section in your Annuity prospectus:
Transactions in Rydex and ProFund VP Sub-accounts: Any financial transactions
involving the Rydex or ProFund VP Sub-accounts must be received by us no later
than one hour prior to any announced closing of the applicable securities
exchange (generally, 3:00 p.m. Eastern time) to be processed on the current
Valuation Day. For transactions submitted electronically through American
Skandia's Internet website (americanskandia.com), the "cut-off" time for
financial transactions involving a Rydex or ProFund VP Sub-account will be
extended to 1/2 hour prior to any announced closing (generally, 3:30 p.m.
Eastern time). However, the Internet functionality is currently available only
to Contract Owners who have authorized their financial representatives to make
financial transactions on their behalf. If you request a transaction involving
the purchase or redemption of Units in one of the Rydex or ProFund VP
Sub-accounts after the applicable "cut-off" time, we will deem your request as
received by us on the next Valuation Day. You may be required to submit a new
request on the following day.
ASAP / ASAP II / ASXT / ASL / AS Pro / ASI / CH2 VASUPP900
FUSI AS2 / FUSI XT / FUSI ASL - SUPP. (09/25/2000)
