Supplement to Prospectus Dated May 3, 1999
Supplement dated September 29, 1999
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.
Pursuant to a vote of the shareholders of American Skandia Trust (the "Trust"),
the Trust has adopted a Distribution Plan under Rule 12b-1 under the Investment
Company Act of 1940 (the "Plan"). The Plan permits the Trust's Distributor,
American Skandia Marketing, Inc. ("ASM"), to receive brokerage commissions in
connection with purchases and sales of securities held by the Portfolios, and to
use these commissions to promote the sale of shares of the Trust. Under the
Plan, transactions for the purchase and sale of securities for a Portfolio of
the Trust may be directed to certain brokers for execution ("clearing brokers")
who have agreed to pay part of the brokerage commissions received on these
transactions to ASM for "introducing" transactions to the clearing broker. In
turn, ASM will use the brokerage commissions received as an introducing broker
to pay various distribution-related expenses, such as advertising, printing of
sales materials, and payments to dealers.
The brokerage commission rates and amounts paid by the various Portfolios are
not expected to increase as a result of the implementation of the Plan, nor are
the total returns of the Portfolios expected to be affected adversely. However,
the staff of the Securities and Exchange Commission has taken the position that
amounts received by ASM as an introducing broker under the Plan should be
reflected in the expenses of the Portfolios. The table below estimates how each
Portfolio's expenses (as a percentage of Portfolio assets on an annual basis)
will be deemed to increase as a result of the implementation of the Plan.
<TABLE>
<CAPTION>
---------------------------------------------- ------------------ ----------------------------------------- -----------------
Portfolio Increase in Portfolio Increase in
Expenses Expenses
---------------------------------------------- ------------------ ----------------------------------------- -----------------
---------------------------------------------- ------------------ ----------------------------------------- -----------------
<S> <C> <C> <C>
AST Founders Passport 0% AST JanCap Growth 0.01%
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AST T. Rowe Price International Equity <0.01% AST Bankers Trust Enhanced 500 0%
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AST AIM International Equity 0.14% AST Cohen & Steers Realty 0.07%
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AST Janus Overseas Growth <0.01% AST American Century Income & Growth 0.05%
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AST American Century International Growth 0% AST Lord Abbett Growth and Income 0.08%
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AST Janus Small-Cap Growth 0.05% AST INVESCO Equity Income 0.04%
---------------------------------------------- ------------------ ----------------------------------------- -----------------
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AST Kemper Small-Cap Growth 0.18% AST AIM Balanced 0.08%
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AST Lord Abbett Small Cap Value 0% AST American Century Strategic Balanced 0%
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AST T. Rowe Price Small Company Value 0% AST T. Rowe Price Asset Allocation 0%
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AST Neuberger Berman Mid-Cap Growth 0.08% AST T. Rowe Price International Bond 0%
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AST Neuberger Berman Mid-Cap Value 0.19% AST Federated High Yield 0%
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AST T. Rowe Price Natural Resources 0.07% AST PIMCO Total Return Bond 0%
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AST Oppenheimer Large-Cap Growth 0.05% AST PIMCO Limited Maturity Bond 0%
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AST Marsico Capital Growth 0.06% AST Money Market 0%
---------------------------------------------- ------------------ ----------------------------------------- -----------------
</TABLE>
The estimates are derived from data regarding each Portfolio's securities
transactions, and the proportion of such transactions directed under the Trust's
policy of considering the sale of Portfolio shares in selecting broker-dealers
to execute transactions, for the twelve months ended June 30, 1999. However, it
is not possible to determine with accuracy actual amounts that will be received
by ASM from the Plan. Such amounts will vary based upon the level of a
Portfolio's brokerage activity, the proportion of such activity directed under
the Plan, and other factors.
This information was provide by the Trust and has not been independently
verified by us. Additional information on Portfolio expenses is included in the
Trust's Prospectus under "Fees and Expenses of the Portfolios."
ASAP/ ASAP II / ASXT / ASL / AS Pro / ASI / CH2 / ASTr / FPVLI (09/99)
