AST BlackRock Value Portfolio - Prudential Annuities

In determining whether a particular company or security may be a suitable investment, Marsico may focus on any of a number of
different attributes that may include, without limitation, the company’s specific market expertise or dominance; its franchise
durability and pricing power; solid fundamentals (e.g., a strong balance sheet, improving returns on equity, the ability to generate
free cash flow, apparent use of conservative accounting standards, and transparent financial disclosure); strong and ethical
management; commitment to shareholder interests; reasonable valuations in the context of projected growth rates; current
income; and other indications that a company or security may be an attractive investment prospect. This process is called
“bottom-up” security selection.
As part of this fundamental, “bottom-up” research, Marsico may visit with a company’s management and conduct other research
to gain thorough knowledge of the company. Marsico also may prepare detailed earnings and cash flow models of companies.
These models may assist Marsico in projecting potential earnings growth, current income and other important company financial
characteristics under different scenarios. Each model is typically customized to follow a particular company and is generally
intended to replicate and describe a company’s past, present and potential future performance. The models may include
quantitative information and detailed narratives that reflect updated interpretations of corporate data and company and
industry developments.
The core investments of the Portfolio (i.e., the primary investments held by the Portfolio over time) generally may include
established companies and securities that are expected to offer long-term growth potential. However, the Portfolio also may
typically include securities of less mature companies, securities with more aggressive growth characteristics, and securities of
companies undergoing significant positive developments, such as, without limitation, the introduction of a new product line, the
appointment of a new management team, or an acquisition.
Marsico may reduce or sell the Portfolio’s investments in securities if, in the opinion of Marsico, a security’s fundamentals change
substantially, its price appreciation leads to substantial overvaluation in relation to Marsico’s estimates of future earnings and cash
flow growth, or for other reasons.
Although it is the general policy of the Portfolio to purchase and hold securities for capital growth, changes in the Portfolio will be
made as the Subadviser deems advisable. For example, portfolio changes may result from liquidity needs, securities having
reached a desired price, or by reason of developments not foreseen at the time of 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 increase 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.
Other Investments:
The Portfolio may also invest to a lesser degree in preferred stocks, convertible securities, warrants, and debt securities when the
Portfolio perceives an opportunity for capital growth from such securities. The Portfolio may invest up to 10% of its total assets in
debt securities, which may include corporate bonds and debentures and government securities.
The Portfolio may also purchase securities of foreign issuers including foreign equity and debt securities and depositary receipts.
The foreign securities may include companies located in developing countries. Foreign securities are selected primarily on a
stock-by-stock basis without regard to any defined allocation among countries or geographic regions. The Portfolio may also use a
variety of currency hedging techniques, including forward currency contracts, to manage exchange rate risk with respect to
investments exposed to foreign currency fluctuations.
Index/Structured Securities. The Portfolio may invest without limit in index/structured securities, which are debt securities whose
value at maturity or interest rate is linked to currencies, interest rates, equity securities, indices, commodity prices or other
financial indicators. Such securities may be positively or negatively indexed ( i.e. , their value may increase or decrease if the
reference index or instrument appreciates). Index/structured securities may have return characteristics similar to direct investments
in the underlying instruments, but may be more volatile than the underlying instruments. The Portfolio bears the market risk of an
investment in the underlying instruments, as well as the credit risk of the issuer of the index/structured security.
Futures, Options and Other Derivative Instruments. The Portfolio may purchase and write (sell) options on securities, financial
indices, and foreign currencies, and may invest in futures contracts on securities, financial indices, and foreign currencies, options
on futures contracts, forward contracts and swaps and swap-related products. These instruments will be used primarily to hedge
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