AST BlackRock Value Portfolio - Prudential Annuities

AST COHEN & STEERS REALTY PORTFOLIO
Investment Objective: to maximize total return through investment in real estate securities.
Principal Investment Policies:
The Portfolio has a non-fundamental policy to invest, under normal circumstances, at least 80% of the value of its net assets in
securities of real estate related issuers. The Portfolio pursues its investment objective of maximizing total return by seeking, with
approximately equal emphasis, capital growth and current income. Generally, the equity securities of real estate related issuers
will consist of:
common stocks (including shares in real estate investment trusts),
rights or warrants to purchase common stocks,
securities convertible into common stocks where the conversion feature represents, in the Subadviser’s view, a significant
element of the securities’ value, and
preferred stocks.
Real estate related issuers include companies that derive at least 50% of revenues from the ownership, construction, financing,
management or sale of real estate or that have at least 50% of assets in real estate. The Portfolio may invest up to 10% of its total
assets in securities of foreign real estate companies.
Real estate companies may include REITs. REITs pool investors’ funds for investment primarily in income producing real estate or
real estate related loans or interests. REITs can generally be classified as Equity REITs, Mortgage REITs and Hybrid REITs. Equity
REITs, which invest the majority of their assets directly in real property, derive their income primarily from rents. Equity REITs can
also realize capital gains or losses by selling properties. Mortgage REITs, which invest the majority of their assets in real estate
mortgages, derive their income primarily from interest payments. Hybrid REITs combine the characteristics of both Equity REITs
and Mortgage REITs.
Non-Diversified Status. The Portfolio is classified as a “non-diversified” investment company under the Investment Company Act
of 1940 (1940 Act), which means the Portfolio is not limited by the 1940 Act in the proportion of its assets that may be invested in
the securities of a single issuer. However, the Portfolio intends to meet certain diversification standards under the Internal Revenue
Code that must be met to relieve the Portfolio of liability for Federal income tax if its earnings are distributed to shareholders. As a
non-diversified fund, a price decline in any one of the Portfolio’s holdings may have a greater effect on the Portfolio’s value than
on the value of a fund that is more broadly diversified.
Other Investments:
The Portfolio may write (sell) put and covered call options and purchase put and call options on securities or stock indices that are
listed on a national securities or commodities exchange. The Portfolio may buy and sell financial futures contracts, stock and bond
index futures contracts, foreign currency futures contracts and options on the foregoing. The Portfolio may enter into forward
foreign currency exchange contracts in connection with its investments in foreign securities. The Portfolio may also enter into short
sales, which are transactions in which the Portfolio sells a security it does not own at the time of the sale in anticipation that the
market price of the security will decline. The Subadviser expects that the Portfolio will use these techniques on a relatively
infrequent basis.
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