AST BlackRock Value Portfolio - Prudential Annuities

Short Sale Risk. A Portfolio that sells a security short in effect borrows and then sells the security with the expectation that it will
later repurchase the security at a lower price and then return the amount borrowed with interest. In contrast, when a Portfolio
buys a security long, it purchases the security with cash with the expectation that it later will sell the security at a higher price. A
Portfolio that enters into short sales exposes the Portfolio to the risk that it will be required to buy the security sold short (also
known as “covering” the short position) at a time when the security has appreciated in value, thus resulting in a loss to the
Portfolio. Theoretically, the amount of these losses can be unlimited, although for fixed income securities an interest rate of 0%
forms an effective limit on how high a security’s price would be expected to rise. Although a Portfolio may try to reduce risk by
holding both long and short positions at the same time, it is possible that the Portfolio’s securities held long will decline in value at
the same time that the value of the Portfolio’s securities sold short increases, thereby increasing the potential for loss.
Small Company Risk. The shares of small companies tend to trade less frequently than those of larger, more established
companies, which can have an adverse effect on the pricing of these securities and on a Portfolio’s ability to sell these securities.
Changes in the demand for these securities generally have a disproportionate effect on their market price, tending to make prices
rise more in response to buying demand and fall more in response to selling pressure. Such investments also may be more volatile
than investments in larger companies, as smaller companies generally experience higher growth and failure rates, and typically
have less access to capital. In the case of small cap technology companies, the risks associated with technology company stocks,
which tend to be more volatile than other sectors, are magnified.
Small and Medium Sized Company Risk. The shares of small and medium sized companies tend to trade less frequently than those
of larger, more established companies, which can have an adverse effect on the pricing of these securities and on the Portfolio’s
ability to sell these securities. Changes in the demand for these securities generally have a disproportionate effect on their market
price, tending to make prices rise more in response to buying demand and fall more in response to selling pressure. Such
investments also may be more volatile than investments in larger companies, as smaller and medium sized companies generally
experience higher growth and failure rates, and typically have less diversified product lines, less experienced senior management,
and less access to capital than larger companies. In the case of small cap technology companies, the risks associated with
technology company stocks, which tend to be more volatile than other sectors, are magnified.
Value Style Risk. There is a risk that the value investment style may be out of favor for a period of time, that the market will not
recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately
priced. Historically, value stocks have performed best during periods of economic recovery.
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