AST BlackRock Value Portfolio - Prudential Annuities

focuses on valuation relative to a company’s underlying real estate assets as well as a company’s on-going concern valuation.
Through detailed company research that includes regular management visits, property tours and financial analysis, PREI analyzes
the quality of real estate asset cash flows and sustainability and growth of company dividends. PREI also evaluates the company’s
strategy, management’s track record, incentives and ability to create long term shareholder value. PREI believes it adds value by its
understanding and analysis of private real estate markets. PREI estimates that nearly 95% of institutional quality commercial real
estate is not publicly-traded. PREI intends to invest the Portfolio’s assets globally in real estate investments.
Derivative Strategies. PREI may use various derivative strategies to try to improve the Portfolio’s returns. PREI may also use
hedging techniques to try to protect the Portfolio’s assets. The Portfolio cannot guarantee that these strategies and techniques will
work, that the instruments necessary to implement these strategies and techniques will be available, or that the Portfolio will not
lose money.
Non-Real Estate Investments. Under normal circumstances, the Portfolio may invest up to 20% of its investable assets in securities
of issuers not in the real estate industry. These include equity-related securities (i.e., securities that may be converted into or
exchanged for common stock or the cash value of common stock, known as convertible securities), fixed income securities,
U.S. Government securities and money market instruments.
Other Investments:
In addition to the principal strategies, the Subadviser also may use the following strategies to try to increase the Portfolio’s returns
or protect its assets if market conditions warrant.
Additional Strategies. The Portfolio may also use the following investments and strategies: exchange-traded funds, initial public
offerings, convertible securities and preferred stock, repurchase agreements, reverse repurchase agreements, dollar rolls, and
when-issued and delayed-delivery securities. The Portfolio follows certain policies when it borrows money (the Portfolio can
borrow up to 33 1 ⁄3% of the value of its total assets); lends its securities to others (the Portfolio can lend up to 33 1 ⁄3% of the value of
its total assets); and holds illiquid securities (the Portfolio may invest up to 15% of its net assets in illiquid securities, including
securities with legal or contractual restrictions on resale, those without a readily available market and repurchase agreements with
maturities longer than seven days). The Portfolio is subject to certain other investment restrictions that are fundamental policies,
which means they cannot be changed without shareholder approval. For more information about these restrictions, please see
the SAI.
AST GOLDMAN SACHS CONCENTRATED GROWTH PORTFOLIO
Investment Objective: Long-term growth of capital.
Principal Investment Policies:
The Portfolio pursues its objective, under normal circumstances, by investing primarily in equity securities. Equity securities
include common stocks, preferred securities, warrants and securities convertible into or exchangeable for common or preferred
stocks. Investments will be in companies that the Subadviser believes have potential to achieve capital appreciation over the
long-term. The Portfolio seeks to achieve its investment objective by investing, under normal circumstances, in approximately
30-45 companies that are considered by the Subadviser to be positioned for long-term growth.
The Portfolio generally intends to purchase securities for long-term investment rather than short-term gains. However, short-term
transactions may occur as the result of liquidity needs, securities having reached a desired price or yield, anticipated changes in
interest rates or the credit standing of an issuer, or by reason of economic or other developments not foreseen at the time the
investment was made.
Special Situations. The Portfolio may invest in “special situations” from time to time. A “special situation” arises when, in the
opinion of the Subadviser, the securities of a particular company will be recognized and appreciate in value due to a specific
development, such as a technological breakthrough, management change or new product at that company. Investment in “special
situations” carries an additional risk of loss in the event that the anticipated development does not occur or does not attract the
expected attention.
Non-diversified Status. The Portfolio is “non-diversified” under the Investment Company Act of 1940 and may invest a large
percentage of its assets in only a few issuers, unlike “diversified” mutual funds. Therefore, the Portfolio may be more susceptible to
adverse developments affecting any single issuer held in its portfolio, and may be more susceptible to greater losses because of
these developments.
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