AST BlackRock Value Portfolio - Prudential Annuities

The Portfolio may invest in a wide range of asset classes, including U.S. and non-U.S. equities, emerging markets equities, real
estate investment trusts (REITs) domiciled in and outside of the United States, U.S. and non-U.S. fixed income, high yield bonds,
convertible bonds, and emerging markets bonds. The allocation to these asset classes will vary depending on J.P. Morgan’s tactical
views. Market neutral strategies seek to produce a positive return regardless of the direction of the equity markets. 130/30
strategies follow a particular index, for example the S&P 500, but allow J.P. Morgan to sell short securities that are deemed likely
to decline in value. Absolute return strategies seek to generate a return in excess of prevailing yields on U.S. Treasuries or the
London Interbank Offered Rate (LIBOR).
Within its equity allocations, the Portfolio primarily invests in the common stock and convertible securities of U.S. and foreign
companies, including companies that are located or domiciled in, or that derive significant revenues or profits from, emerging
market countries. Equity securities in which the Portfolio can invest may include common stocks, preferred stocks, convertible
securities, depositary receipts, warrants and rights to buy common stocks, and master limited partnerships. The Portfolio may
invest in securities denominated in U.S. dollars, major reserve currencies and currencies of other countries in which it can invest.
The Portfolio invests in securities denominated in foreign currencies and may seek to enhance returns and/or manage currency
risk versus the benchmark where appropriate through managing currency exposure. Capital markets in certain countries may be
less developed and/or not easy to access. With its fixed income allocation, the Portfolio may invest in a wide range of debt
securities of issuers from the U.S. and other markets, both developed and emerging. Investments may be issued or guaranteed by a
wide variety of entities including governments and their agencies, corporations, financial institutions and supranational
organizations that the Portfolio believes have the potential to provide a high total return over time. The Portfolio may invest in
inflation-linked debt securities, including fixed and floating rate debt securities of varying maturities issued by the
U.S. government, its agencies and instrumentalities, such as Treasury Inflation Protected Securities (TIPS). The Portfolio may invest
in mortgage-related securities issued by governmental entities and private issuers.
The Portfolio may invest assets in securities that are rated below investment grade (junk bonds) by Moody’s Investor Services, Inc.
(Moody’s), Standard & Poor’s Corporation (S&P), Fitch Ratings (Fitch) or the equivalent by another national rating organization, or
securities that are unrated but are deemed by J.P Morgan to be of comparable quality. Securities rated below investment grade
may include so called “distressed debt” (i.e., securities of issuers experiencing financial or operating difficulties or operating in
troubled industries that present attractive risk-reward characteristics). The Portfolio may invest in floating rate securities, whose
interest rates adjust automatically whenever a specified interest rate changes, and in variable rate securities, whose interest rates
are changed periodically.
The Portfolio may enter into short sales. In short selling transactions, the Portfolio sells a security it does not own in anticipation of
a decline in the market value of the security. To complete the transaction, the Portfolio must borrow the security to make delivery
to the buyer. The Portfolio is obligated to replace the security borrowed by purchasing it subsequently at the market price at the
time of replacement.
The Portfolio may invest in shares of exchange-traded funds (ETFs), REITs, affiliated money market funds and other investment
companies. An ETF is a registered investment company that seeks to track the performance of a particular market index. These
indexes include not only broad-based market indexes but more specific indexes as well, including those relating to particular
sectors, markets, regions and industries. REITs are pooled investment vehicles that invest primarily in income-producing real estate
or loans related to real estate.
The Portfolio may invest in common shares or preferred shares of unaffiliated closed-end funds.
Derivatives, which are instruments that have a value based on another instrument, exchange rate or index, may be used as
substitutes for securities in which the Portfolio can invest. The Portfolio may use futures contracts, options, swaps and other
derivatives as tools in the management of the Portfolio assets. The Portfolio may use derivatives for hedging or investment
purposes, including to obtain significant amounts of long or short exposure.
Up to approximately 5% of the Portfolio’s net assets may be allocated to: (i) index futures, other futures contracts, and options
thereon to provide liquid exposure to their respective equity and fixed-income benchmark indices and (ii) cash, money market
equivalents, short-term debt instruments, money market funds, and short-term debt funds to satisfy all applicable margin
requirements for the futures contracts and to provide additional portfolio liquidity to satisfy large-scale redemptions and any
variation margin calls with respect to the futures contracts. The Portfolio may also invest in ETFs for additional exposure to
relevant markets.
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