AST BlackRock Value Portfolio - Prudential Annuities

AST Bond Portfolio 2023
Investment Objectives: the highest total return for a specific period of time, consistent with the preservation of capital and
liquidity needs. Total return is comprised of current income and capital appreciation.
AST INVESTMENT GRADE BOND PORTFOLIO
Investment Objective: to maximize total return, consistent with the preservation of capital and liquidity needs. As set forth
above, total return is comprised of current income and capital appreciation.
Principal Investment Policies and Risks of the Target Maturity Portfolios.
Under normal market conditions, each Target Maturity Portfolio invests at least 80% of its investable assets in bonds. For purposes
of this 80% policy, bonds include: (i) all debt securities and all fixed-income securities, excluding preferred stock, issued by both
government and non-government issuers, and (ii) all derivatives and synthetic instruments that have economic characteristics that
are similar to such debt securities and such fixed-income securities. The above-described 80% policy is a non-fundamental
investment policy of each Target Maturity Portfolio and may be changed by the Board without shareholder approval. As used in
this Prospectus, the term “investable assets” refers to a Portfolio’s net assets plus any borrowings for investment purposes. A
Portfolio’s investable assets will be less than its total assets to the extent that it has borrowed money for non-investment purposes,
such as to meet anticipated redemptions.
Each Target Maturity Portfolio is managed to mature in the year identified in its name in order to match the related liability under
certain living benefit programs. As a result, each Target Maturity Portfolio’s duration and weighted average maturity is different. For
example, the AST Bond Portfolio 2021 will have a longer duration and a longer weighted average maturity than the AST Bond
Portfolio 2015, the AST Bond Portfolio 2016, the AST Bond Portfolio 2018, the AST Bond Portfolio 2019, and the AST Bond
Portfolio 2020. In addition, each Target Maturity Portfolio’s duration and weighted average maturity will decline over time as the
relevant maturity date approaches. To that end, the Subadviser expects to maintain the duration of each Target Maturity Portfolio
within +/– 0.50 years of the secondary benchmark index for that Target Maturity Portfolio. On or about a Target Maturity Portfolio’s
maturity date, all of the securities held by that Target Maturity Portfolio will be sold and all of the outstanding shares of beneficial
interest of that Target Maturity Portfolio will be redeemed. Proceeds from that redemption will be reallocated in accordance with
the procedures applicable to the contact owner’s variable contract.
The Subadviser currently intends to maintain an overall weighted average credit quality rating of A– or better for each Target
Maturity Portfolio. This target overall credit quality for each Target Maturity Portfolio will be based on ratings as of the date of
purchase. In the event a Target Maturity Portfolio’s overall credit quality drops below A– due to downgrades of individual portfolio
securities, the Subadviser will take appropriate action based upon the relevant facts and circumstances.
Investment Policies of the Investment Grade Bond Portfolio
Under normal market conditions, the Investment Grade Bond Portfolio invests at least 80% of its investable assets in investment
grade bonds. For purposes of this 80% policy, investment grade bonds include: (i) all debt securities and all fixed-income
securities, excluding preferred stock, that are issued by both government and non-government issuers and rated BBB or higher by
S&P, Baa or higher by Moody’s, BBB or higher by Fitch or, if unrated, are determined by the subadviser to be of comparable
quality, and (ii) all derivatives and synthetic instruments that have economic characteristics that are similar to debt securities and
fixed-income securities with such ratings. All references in this Prospectus to the ratings categories used for determining what
constitutes an investment grade bond are without regard to gradations within those categories. The subadviser currently intends to
maintain an overall weighted average credit quality rating of A– or better for the Investment Grade Bond Portfolio. This target
overall credit quality for the Investment Grade Bond Portfolio will be based on ratings as of the date of purchase. In the event the
Investment Grade Bond Portfolio’s overall credit quality drops below A– due to downgrades of individual portfolio securities, the
subadviser will take appropriate action based upon the relevant facts and circumstances.
Although the Investment Grade Bond Portfolio may invest in individual bonds of any maturity, the subadviser expects to maintain
the Investment Grade Bond Portfolio’s duration within +/- 0.50 years of its primary benchmark index (i.e., the Barclays Capital
Government/Credit 5-10 Year Index). As of March 31, 2012, the average duration of the Barclays Capital Government/Credit 5-10
Year Index was approximately 6.3 years.
Principal Investments of the Portfolios
General. The Subadviser has a team of fixed-income professionals, including credit analysts and traders, with experience in many
sectors of the U.S. and foreign fixed-income securities markets. The Subadviser will use qualitative and quantitative analysis to
evaluate each bond issue considered for a Portfolio. In selecting portfolio securities for a Portfolio, the subadviser will consider
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