AST BlackRock Value Portfolio - Prudential Annuities

Uncertainty creates opportunity. Some stock price declines truly reflect a permanently disadvantaged business model. These
stocks are the “value traps” that mire price-oriented investors. Other stock price declines merely reflect near-term market volatility.
Through its proprietary research and strong valuation discipline, the subadviser seeks to purchase well-positioned, cash generating
businesses run by shareholder-oriented managements at a price low enough to provide a healthy margin of safety.
Avoiding “value traps.” The Subadviser believes the key to successful investing in the small cap value space is to avoid the
“losers” or “value traps.” Academic studies have shown that small cap value has historically outperformed other asset classes, but
with higher volatility and less liquidity. By focusing on stock selection within sectors and avoiding the “losers,” the Subadviser
believes it can participate in the long-term performance of small cap value with less risk than other managers.
The Portfolio has a non-fundamental policy to invest, under normal circumstances, at least 80% of the value of its assets in small
capitalization companies (measured at the time of purchase). Small capitalization companies are defined as companies within the
market capitalization range of the Russell 2000 ® Value Index. The Portfolio may invest up to 25% of its assets in foreign securities
including assets in emerging countries or assets quoted in foreign currencies.
Other Investments:
The Portfolio may engage in various portfolio strategies to reduce certain risks of its investments and to enhance income, but not
for speculation. The Portfolio may purchase and write (sell) put and covered call options on equity securities or stock indices that
are traded on national securities exchanges. The Portfolio may purchase and sell stock index futures for certain hedging and risk
management purposes. New financial products and risk management techniques continue to be developed and the Portfolio may
use these new investments and techniques to the extent consistent with its investment objective and policies.
The Portfolio may invest up to 25% of its net assets (at the time of investment) in securities (of the type described above) that are
primarily traded in foreign countries. The Portfolio may enter into forward foreign currency exchange contracts in connection with
its investments in foreign securities. The Portfolio also may purchase foreign currency put options and write foreign currency call
options on U.S. exchanges or U.S. over-the-counter markets. The Portfolio may write a call option on a foreign currency only in
conjunction with a purchase of a put option on that currency.
The Portfolio also may invest in preferred stocks and bonds that either have attached warrants or are convertible into
common stocks.
Foreign Securities. The Portfolio may invest up to 25% of its net assets in foreign securities (including emerging market securities)
denominated in foreign currencies and not publicly traded in the United States. The Portfolio may invest directly in foreign
securities denominated in a foreign currency, or may invest through depositary receipts or passive foreign investment companies.
Generally, the same criteria are used to select foreign securities as domestic securities. Foreign securities are generally selected on
a stock-by-stock basis without regard to any defined allocation among countries or geographic regions. However, certain factors
such as expected levels of inflation, government policies influencing business conditions, the outlook for currency relationships,
and prospects for economic growth among countries, regions or geographic areas may warrant greater consideration in selecting
foreign securities.
AST HIGH YIELD PORTFOLIO
Investment Objective: maximum total return, consistent with preservation of capital and prudent investment management.
Principal Investment Policies:
The assets of the Portfolio are independently managed by J.P. Morgan Investment Management, Inc. (J.P. Morgan) and Prudential
Investment Management, Inc. (each, a Subadviser and together, the Subadvisers) under a multi-manager structure. Pursuant to the
multi-manager structure, the Investment Managers of the Portfolio determine and allocate a portion of the Portfolio’s assets to each
of PIM and J.P. Morgan. PIM is responsible for managing approximately 60% of the Portfolio’s net assets, and J.P. Morgan is
responsible for managing the remaining 40% of the Portfolio’s net assets. These allocations, however, are reviewed by the
Investment Managers periodically and may be altered or adjusted by the Investment Managers without prior notice. Such
adjustments will be reflected in the annual update to the Prospectus.
The Portfolio invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes
(measured at the time of purchase) in non-investment grade high-yield fixed-income investments, which may be represented by
forwards or derivatives such as options, futures contracts, or swap agreements. Non-investment grade securities are securities rated
Ba or lower by Moody’s Investors Services, Inc. or equivalently rated by Standard & Poor’s Ratings Services or Fitch Ratings, or, if
unrated, determined by the relevant Subadviser to be of comparable quality.
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