AST BlackRock Value Portfolio - Prudential Annuities

Underlying Portfolio Principal Investments Traditional Investment Category
AST Cohen & Steers Real Estate Invests primarily in equity securities of real estate companies Domestic Real Estate
AST Global Real Estate
Invests primarily in equity securities of real estate companies on a
global basis
Global Real Estate
The Investment Managers have retained the Subadvisers listed below to directly manage the assets allocated to the indicated
nontraditional investment categories and strategies.
Subadvisers
CoreCommodity Management, LLC (Core)
Pacific Investment Management Company LLC (PIMCO)
Jennison Associates LLC (Jennison)
QMA
First Quadrant, L.P.
First Quadrant, L.P.
AlphaSimplex Group LLC
AQR Capital Management, LLC & CNH Partners, LLC
J.P. Morgan Investment Management, Inc. (JPMorgan)
Investment Categories and Strategies
Commodities
Inflation-Indexed Securities
International Fixed-Income (Hedged)
Emerging Markets Fixed-Income
Global Infrastructure
Long/Short Market Neutral
Overlay
Global Macro
Currency
Hedge Fund Replication
Diversified Arbitrage
Long/Short Market Neutral
COMMODITIES (Core). The Core strategy (the Founders Blend Strategy) seeks to generate returns over time in excess of traditional
commodity benchmark indexes. Techniques that may be utilized by the Founders Blend Strategy include the selection of
commodity futures contracts with expiration dates different from the expiration dates of the comparable futures contracts that
comprise the benchmark indexes, and the over-weighting or under-weighting of certain commodity futures contracts relative to
their weights in the benchmark indexes.
INFLATION-INDEXED SECURITIES (PIMCO). Under normal circumstances, PIMCO invests at least 80% of the net assets
attributable to this investment category in inflation-indexed bonds of varying maturities issued by the U.S. government and
non-U.S. governments, their agencies or instrumentalities, and corporations, which may be represented by forwards or derivatives
such as options, futures contracts, or swap agreements. Assets not invested in inflation-indexed bonds may be invested in other
types of fixed income instruments. Inflation-indexed bonds are fixed income securities that are structured to provide protection
against inflation. The value of the bond’s principal or the interest income paid on the bond is adjusted to track changes in an
official inflation measure. The U.S. Treasury uses the Consumer Price Index for Urban Consumers as the inflation measure.
Inflation-indexed bonds issued by a foreign government are generally adjusted to reflect a comparable inflation index, calculated
by that government. “Real return” equals total return less the estimated cost of inflation, which is typically measured by the
change in an official inflation measure. Effective duration takes into account that for certain bonds expected cash flows will
fluctuate as interest rates change and is defined in nominal yield terms, which is market convention for most bond investors and
managers. Durations for real return bonds, which are based on real yields, are converted to nominal durations through a
conversion factor, typically between 20% and 90% of the respective real duration. All security holdings are measured in effective
(nominal) duration terms. Similarly, the effective duration of the Barclays Capital U.S. TIPS Index is calculated using the same
conversion factors. The effective duration of the assets attributable to this investment category normally varies within three years
(plus or minus) of the duration of the Barclays Capital U.S. TIPS Index.
PIMCO invests the assets attributable to this investment category primarily in investment grade securities, but may invest up to
10% of the total assets attributable to this investment category in high yield securities (“junk bonds”) rated B or higher by
Moody’s, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. PIMCO also
may invest up to 80% of the total assets attributable to this investment category in securities denominated in foreign currencies,
and may invest beyond this limit in U.S. dollar denominated securities of foreign issuers. PIMCO may invest up to 10% of the total
assets attributable to this investment category in securities and instruments that are economically tied to emerging market
countries. PIMCO normally limits the foreign currency exposure (from non-U.S. dollar-denominated securities or currencies) for
this investment category to 20% of its total assets. PIMCO may concentrate the assets attributable to this investment category in a
relatively small number of issuers.
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