WFV2
Supplement to Prospectus Dated May 3, 1999
Supplement dated September 20, 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 shareholder vote the portfolios of Life & Annuity Trust (LAT) are
being reorganized into new portfolios of Wells Fargo Variable Trust (WFVT).
Under the reorganization, four (4) of the portfolios of Life & Annuity Trust
will transfer all of their assets and liabilities into corresponding portfolios
of Wells Fargo Variable Trust which will have the same investment objectives and
principal investment strategies. Two (2) portfolios of Life & Annuity Trust are
being merged with existing portfolios of Norwest Select Funds and each will
become a new portfolio of Wells Fargo Variable Trust.
Due to this reorganization the following changes are being made to your
Stagecoach Variable Annuity prospectus:
1. The following portfolios are changing their name:
OLD NAME: NEW NAME:
LAT Asset Allocation WFVT Asset Allocation
LAT Growth WFVT Growth
LAT Equity Value WFVT Equity Value
LAT Money Market WFVT Money Market
2. The following new portfolios of Wells Fargo Variable Trust are being
added, following a merger with an existing Norwest Select portfolio:
OLD LAT FUND: NEW WFVT FUND:
LAT U.S. Government Allocation* WFVT Corporate Bond
LAT Strategic Growth* WFVT Small Cap Growth
3. The following new portfolios of Wells Fargo Variable Trust are being added:
WFVT Equity Income
WFVT Large Company Growth
*Effective September 20, 1999, the LAT U.S. Government Allocation and LAT
Strategic Growth portfolios no longer exist.
<TABLE>
<CAPTION>
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Underlying Mutual Fund Portfolio Annual Expenses*
(as a percentage of the average net assets of the underlying Portfolios)
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Management Other Total Annual Fee Waivers Net Annual
UNDERLYING PORTFOLIO Fees Expenses Portfolio and Expense Fund
Operating Reimbursement Operating
Expenses Expenses
- -------------------------------------------- ----------------- ---------------- ------------------ -------------- ----------------
<S> <C> <C> <C> <C> <C>
WFVT Equity Income 0.55% 0.62% 1.17% 0.17% 1.00%
WFVT Large Company Growth 0.55% 0.88% 1.43% 0.43% 1.00%
WFVT Asset Allocation 0.55% 0.58% 1.13% 0.13% 1.00%
WFVT Growth 0.55% 0.68% 1.23% 0.23% 1.00%
WFVT Equity Value 0.55% 1.02% 1.57% 0.57% 1.00%
WFVT Corporate Bond 0.45% 0.80% 1.25% 0.35% 0.90%
WFVT Small Cap Growth 0.75% 1.66% 2.41% 1.21% 1.20%
WFVT Money Market 0.40% 0.50% 0.90% 0.05% 0.85%
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</TABLE>
* Expenses are annualized based on estimated expense amounts between the
inception date of each portfolio and the fiscal year ending December 31,
1999.
<PAGE>
EXPENSE EXAMPLES
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<CAPTION>
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Expense Examples
(amounts shown are rounded to the nearest dollar)
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If you surrender your Annuity at the end
of the applicable time period, you would pay If you do not surrender your Annuity
the following expenses on a $1,000 at the end of the applicable time
investment, assuming 5% annual return on assets: period or begin taking annuity payments
at such time, you would pay the following
expenses on a $1,000 investment, assuming
5% annual return on assets:
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After: After:
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- -------------------------------------------- --------- ---------- --------- ---------- ------- ---------- ---- ---------- ----------
Sub-Account: 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- -------------------------------------------- --------- ---------- --------- ---------- ------- ---------- ---- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WFVT Equity Income 95 136 169 275 25 76 129 275
WFVT Large Company Growth 95 136 169 275 25 76 129 275
WFVT Asset Allocation 95 136 169 275 25 76 129 275
WFVT Growth 95 136 169 275 25 76 129 275
WFVT Equity Value 95 136 169 275 25 76 129 275
WFVT Corporate Bond 94 133 164 265 24 73 124 265
WFVT Small Cap Growth 97 142 180 296 27 82 140 296
WFVT Money Market 93 131 162 260 23 71 122 260
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</TABLE>
INVESTMENT OPTIONS
<TABLE>
<CAPTION>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<S> <C> <C> <C>
CAPITAL WFVT Money Market: seeks high current income, while Wells Fargo Bank,
PRESERVATION preserving capital and liquidity. The Investment Advisor N.A.
actively manages a portfolio of U.S. dollar denominated
high-quality money market instruments, including debt
obligations.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
WFVT Asset Allocation: seeks long-term total return,
consistent with reasonable risk. The Portfolio pursues its
objective by allocating and reallocating its assets among
common stocks, U.S. Treasury Bonds and money market
instruments. This strategy is based on the premise that
ASSET asset classes are at times undervalued or overvalued in
ALLOCATION comparison to one another and that investing in undervalued Wells Fargo Bank,
asset classes offers better long-term, risk-adjusted N.A.
returns. The Investment Advisor manages the allocation of
investments in the Portfolio assuming a "normal" allocation
of 60% stocks and 40% bonds. The stock portion of the
Portfolio is invested to replicate the weightings of each
company comprising the S&P 500 Index. The bond portion of
the Portfolio is invested to replicate the Lehman Brothers
20+ Bond Index.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
WFVT Corporate Bond: seeks a high level of current income,
CORPORATE consistent with reasonable risk. The Portfolio pursues its
BOND objective by actively managing a diversified portfolio
consisting primarily of corporate debt securities. While the Wells Fargo Bank,
portfolio may invest in securities of any maturity, under N.A.
normal market conditions, it expects to maintain a
dollar-weighted average maturity for portfolio securities of
between 10 and 15 years. The Portfolio also may invest in
U.S. Government obligations.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
EQUITY INCOME WFVT Equity Income: seeks long-term capital appreciation and
above-average dividend income. The Portfolio pursues its
objective primarily by investing in the common stocks of
large, high-quality domestic companies with above-average Wells Fargo Bank,
return potential based on current market valuations and N.A.
above-average dividend income. Under normal market
conditions, the Portfolio invests at least 65% of its total
assets in income producing equity securities and in issues
of companies with market capitalizations greater than the
median of the Russell 1000 Index.
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<PAGE>
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PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
WFVT Growth: seeks long-term capital appreciation. The
Portfolio pursues its objective by investing primarily in
common stocks and other equity securities of companies that
have a strong earnings growth trend that the Investment Wells Fargo Bank,
Advisor believes have above-average prospects for future N.A.
growth. Under normal market conditions, the Portfolio
invests at least 65% of total assets in equity securities,
including common and preferred stocks and securities
convertible into common stocks. The investment strategy is
focused on larger capitalization stocks that fall within,
but towards the higher end of, the range of the Russell 1000
Index.
GROWTH
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WFVT Equity Value: seeks long-term capital appreciation. The
Portfolio pursues its objective by investing in a
diversified portfolio composed primarily of equity
securities that are trading at low price-to-earnings ratios,
as measured against the stock market as a whole or against Wells Fargo Bank,
the individual stock's own price history. Under normal N.A.
market conditions, the Portfolio invests primarily in common
stocks of both large, well-established companies and smaller
companies with market capitalization exceeding $50 million
at the time of purchase. The Portfolio may also invest in
debt instruments that may be converted into the common
stocks of both U.S. and foreign companies.
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WFVT Large Company Growth: seeks long-term capital
appreciation. The Portfolio pursues its objective by
investing primarily in common stocks of large, high-quality
domestic companies that the Investment Advisor believes to Wells Fargo Bank,
possess superior growth potential. The Investment Advisor N.A.
looks for companies that are attractively valued with
fundamental characteristics that it believes are
significantly better than the market average and support
internal earnings growth capability.
- ----------- ------------------------------------------------------------------------------------------------ -----------------------
WFVT Small Cap Growth: seeks long-term capital appreciation.
The Portfolio pursues its objective by investing in a
diversified portfolio of common stocks issued by companies
whose market capitalization falls with the range of the
SMALL Russell 2000 Index. The Portfolio invests in common stocks Wells Fargo Bank,
CAPITALIZATION of domestic and foreign companies that the investment N.A.
advisor believes have above-average prospects for capital
growth, or that may be involved in new or innovative
products, services and processes. Under normal market
conditions, the Portfolio invests in an actively managed,
broadly diversified portfolio of small-cap growth-oriented
common stocks and in at least 20 common stock issues spread
across multiple industry groups and sectors of the economy.
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<PAGE>
APPENDIX C - PRIOR CONTRACT
EXPENSE EXAMPLES
The Expense Examples for Stagecoach Variable Annuity (SVA) are as follows:
<TABLE>
<CAPTION>
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Expense Examples
(amounts shown are rounded to the nearest dollar)
- ------------------------------------------------------------------------------------------------------------------------------------
If you surrender your Annuity at the end
of the applicable time period, you would pay If you do not surrender your Annuity
the following expenses on a $1,000 at the end of the applicable time
investment, assuming 5% annual return on assets: period or begin taking annuity payments
at such time, you would pay the following
expenses on a $1,000 investment, assuming
5% annual return on assets:
---------------------------------------------- ------- --------------------------------------
---------------------------------------------- ------- -----------------------------------------
After: After:
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- --------------------------------------- --------- ---------- --------- ---------- ------- ---------- --------- ---------- ----------
Sub-Account: 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- --------------------------------------- --------- ---------- --------- ---------- ------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WFVT Equity Income 95 137 172 280 25 77 132 280
WFVT Large Company Growth 95 137 172 280 25 77 132 280
WFVT Asset Allocation 95 137 172 280 25 77 132 280
WFVT Growth 95 137 172 280 25 77 132 280
WFVT Equity Value 95 137 172 280 25 77 132 280
WFVT Corporate Bond 94 134 167 270 24 74 127 270
WFVT Small Cap Growth 97 143 182 300 27 83 142 300
WFVT Money Market 94 133 164 265 24 73 124 265
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