AST BlackRock Value Portfolio - Prudential Annuities

strong relative earnings growth, earnings quality and good relative valuation. A company’s stock price relative to its earnings and
book value, among other factors, is also examined-if the BlackRock portfolio management team believes that a company is
overvalued, it is not considered as an investment for the Portfolio. After the initial screening is done, BlackRock will rely on
fundamental analysis, a method of stock market analysis that concentrates on “fundamental” information about the company
(such as its income statement, balance sheet, earnings and sales history, products and management) to attempt to forecast future
stock value, using both internal and external research, to optimize its quantitative model to choose companies BlackRock believes
have strong, sustainable earnings growth with current momentum at attractive price valuations.
Because the U.S. Large Cap Core Equity investment strategy generally does not hold all the stocks from the Russell 1000® Index,
and because its investments may be allocated in amounts that vary from the proportional weightings of the various stocks in that
index, this portion of the Portfolio is not, and does not seek to be, an “index” fund. In seeking to outperform the Russell 1000 ®
Index, however, BlackRock reviews potential investments using certain criteria that are based on the securities in that index. These
criteria currently include the following:
1. Relative price to earnings and price to book ratios
2. Stability and quality of earnings
3. Earnings momentum and growth
4. Weighted median market capitalization of this portfolio segment
5. Allocation among the economic sectors of this portfolio segment as compared to the Russell 1000® Index
6. Weighted individual stocks within the Russell 1000® Index
GLOBAL EQUITY FOCUS. Under normal circumstances, at least 60% of the net assets attributable to this investment strategy are
invested in dividend-paying equity securities, primarily common stock, preferred stock, securities convertible into common and
preferred stock and non-convertible preferred stock. Although the assets attributable to the Global Equity Focus investment
strategy may be invested in securities of companies of any market capitalization, BlackRock invests primarily in the securities of
large capitalization companies. The combination of equity securities is varied from time to time both with respect to types of
securities and markets in response to changing market and economic trends. BlackRock may invest the assets attributable to this
investment strategy in shares of companies through initial public offerings and “new issues.”
Under normal circumstances, BlackRock allocates a substantial amount (at least 40% or more-unless market conditions are not
deemed favorable by BlackRock, in which case at least 30%) of the total assets attributable to the Global Equity Focus investment
strategy in foreign securities. For these purposes, “foreign securities” may include securities of: (i) foreign government issuers;
(ii) issuers organized or located outside the U.S.; (iii) issuers which primarily trade in a market located outside the U.S.; and
(iv) issuers doing a substantial amount of business outside the U.S., which BlackRock considers to be companies that derive at
least 50% of their revenue or profits from business outside the U.S. or have at least 50% of their sales or assets outside the
U.S. The assets attributable to this investment strategy are allocated among various regions and countries, including the United
States. For temporary defensive purposes the BlackRock Portfolio may deviate very substantially from this allocation. BlackRock
may invest the assets attributable to the Global Equity Focus investment strategy in securities of non-U.S. issuers that are
U.S. dollar based or non-U.S. dollar based.
Up to 20% of the total assets attributable to this segment of the Portfolio may be invested in global fixed income securities of any
duration or maturity, including corporate bonds, U.S. Government debt securities, non-U.S. Government and supranational debt
securities (an example of such an entity is the International Bank for Reconstruction and Development (the World Bank)),
asset-backed securities, mortgage-backed securities, corporate loans, emerging market debt securities and non-investment grade
debt securities (high yield or junk bonds). BlackRock makes such investments in fixed income securities on an opportunistic basis.
There are no geographic limits and no specific policies with respect to the number of different countries in which the assets of this
Portfolio segment are invested. The assets attributable to the Global Equity Focus investment strategy may be invested in both
developed and emerging markets. BlackRock may emphasize foreign securities when it expects these investments to outperform
U.S. securities.
269