Prudential Premier Retirement Variable Annuities

INVESTMENT OBJECTIVES/POLICIES
AST Parametric Emerging Markets Equity Portfolio: seeks long-term capital
appreciation. The Portfolio normally invests at least 80% of its net assets in equity
securities of issuers (i) located in emerging market countries, which are generally those not
considered to be developed market countries, or (ii) included (or considered for inclusion)
as emerging markets issuers in one or more broad-based market indices. Emerging market
countries are generally countries not considered to be developed market countries, and
therefore not included in the MSCI World Index. The Portfolio seeks to employ a topdown,
disciplined and structured investment process that emphasizes broad exposure and
diversification among emerging market countries, economic sectors and issuers.
AST PIMCO Limited Maturity Bond Portfolio: seeks to maximize total return
consistent with preservation of capital and prudent investment management. The Portfolio
will invest, under normal circumstances, at least 80% of the value of its net assets in fixedincome
investments, which may be represented by forwards or derivatives such as options,
futures contracts, or swap agreements. The average portfolio duration normally varies
within a one-to-three year time-frame based on the subadvisor’s forecast of interest rates.
Portfolio holdings are concentrated in areas of the bond market (based on quality, sector,
interest rate or maturity) that the subadvisor believes to be relatively undervalued. The
Portfolio may invest up to 10% total assets in non-investment grade bonds which are
commonly known as “junk bonds”.
AST PIMCO Total Return Bond Portfolio: seeks to maximize total return consistent
with preservation of capital and prudent investment management. The Portfolio will
invest, under normal circumstances, at least 80% of the value of its net assets in fixed
income investments, which may be represented by forwards or derivatives such as options,
futures contracts, or swap agreements. The average portfolio duration normally varies
within two years (+/-) of the duration of the Barclay’s Capital U.S. Aggregate Bond Index.
Portfolio holdings are concentrated in areas of the bond market (based on quality, sector,
interest rate or maturity) that the subadvisor believes to be relatively undervalued. The
Portfolio may invest up to 10% total assets in non-investment grade bonds which are
commonly known as “junk bonds”.
AST Preservation Asset Allocation Portfolio: seeks to obtain a total return consistent
with its specified level of risk. The Portfolio primarily invests its assets in a diversified
portfolio of other mutual funds, within the Advanced Series Trust and certain affiliated
money market funds. Under normal market conditions, the Portfolio will devote
approximately 35% of its net assets to underlying portfolios investing primarily in equity
securities (with a range of 27.5% to 42.5%), and 65% of its net assets to underlying
portfolios investing primarily in debt securities and money market instruments (with a
range of 57.5% to 72.5%). The Portfolio is not limited to investing exclusively in shares of
the underlying portfolios and may invest in securities, exchange traded funds (ETFs), and
futures contracts, swap agreements and other financial and derivative instruments.
AST Prudential Core Bond Portfolio: seeks to maximize total return consistent with the
long-term preservation of capital. The Portfolio will invest, under normal circumstances,
at least 80% of its net assets in intermediate and long-term debt obligations and high
quality money market instruments. The Portfolio will invest, under normal circumstances,
at least 80% of its net assets in intermediate and long-term debt obligations that are rated
investment grade by the major ratings services, or if unrated, considered to be of
comparable quality by the subadvisor, and high quality money market instruments.
Likewise, the Portfolio may invest up to 20% of its net assets in high-yield/high-risk debt
securities (commonly known as “junk bonds”). The Portfolio also may invest up to 20% of
its total assets in debt securities issued outside the U.S. by U.S. or foreign issuers, whether
or not such securities are denominated in the U.S. dollar.
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STYLE/
TYPE
INTER-
NATIONAL
EQUITY
FIXED
INCOME
FIXED
INCOME
ASSET
ALLOCA-
TION
FIXED
INCOME
PORTFOLIO
ADVISOR/
SUBADVISOR
Parametric Portfolio
Associates LLC
Pacific Investment
Management
Company LLC
(PIMCO)
Pacific Investment
Management
Company LLC
(PIMCO)
Prudential
Investments LLC;
Quantitative
Management
Associates LLC
Prudential
Investment
Management, Inc.