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AST BlackRock Value Portfolio - Prudential Annuities

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Covered Call Options. The <strong>Portfolio</strong> may try to reduce the risk of securities price changes (hedge) or generate income by writing<br />

(selling) covered call options against securities held in its portfolio, and may purchase call options in related closing transactions.<br />

The value of securities against which options will be written will not exceed 10% of the <strong>Portfolio</strong>’s net assets.<br />

Real Estate Investment Trusts (REITs). The <strong>Portfolio</strong> may invest in REITs. REITs are pooled investment vehicles which invest<br />

primarily in real estate or real estate loans.<br />

As of January 31, 2012, LSV was responsible for managing 65% of the <strong>Portfolio</strong>’s assets and Neuberger was responsible for<br />

managing 35% of the <strong>Portfolio</strong>’s assets.<br />

<strong>AST</strong> NEW DISCOVERY ASSET ALLOCATION PORTFOLIO<br />

Depending upon the <strong>Portfolio</strong>’s ability to achieve the necessary asset scale, the ability of the Advanced Series Trust to implement<br />

certain legal agreements and custody arrangements, and market, economic, and financial conditions as of the <strong>Portfolio</strong>’s<br />

commencement of operations, it could take up to several weeks for the <strong>Portfolio</strong>’s assets to be fully invested in accordance with its<br />

investment objective and policies. During any such period, it is anticipated that all or a portion of the <strong>Portfolio</strong>’s assets will be<br />

invested in high grade, short term debt securities (both fixed and floating rate), money market funds, short-term bond funds,<br />

exchange-traded funds, and/or index futures contracts. A relatively long investment period may negatively affect the <strong>Portfolio</strong>’s<br />

investment return and its ability to achieve its investment objective.<br />

Investment Objective: The investment objective of the <strong>Portfolio</strong> is to seek total return. Total return is comprised of capital<br />

appreciation and income. This investment objective is not a fundamental investment policy for the <strong>Portfolio</strong> and, therefore, may be<br />

changed by the Board of Trustees of Advanced Series Trust without shareholder approval.<br />

Principal Investment Policies:<br />

In seeking to achieve the <strong>Portfolio</strong>’s investment objective, the Investment Managers will cause the <strong>Portfolio</strong>’s assets to be allocated<br />

across eight different investment strategies. The <strong>Portfolio</strong> will have three strategies that invest primarily in domestic equity<br />

securities, two strategies that invest primarily in international equity securities, two strategies that invest primarily in fixed-income<br />

securities, and one strategy that invests in the <strong>Prudential</strong> Core Taxable Money Market Fund (referred to herein as the “Liquidity<br />

Strategy”). The current expected initial allocation of <strong>Portfolio</strong> assets across the eight investment strategies is set forth in the table<br />

below. The expected initial allocations are preliminary and subject to change by the Investment Manager at any time. Such<br />

allocations may also vary due to cash flows into, and out of, the <strong>Portfolio</strong> and the performance of the various strategies.<br />

Investment Strategy New Discovery Subadviser Estimated Initial Allocation of<br />

Assets<br />

Domestic Large-Cap Core Epoch Investment Partners, Inc. (Epoch) 15.0%<br />

Domestic Large-Cap <strong>Value</strong> Security Investors, LLC (SGI) 20.0%<br />

Domestic Large-Cap Growth Brown Advisory, LLC (Brown Advisory) 15.0%<br />

International Equity EARNEST Partners, LLC (EARNEST) 6.0%<br />

International Equity Thompson, Siegel & Walmsley, LLC (TS&W) 14.0%<br />

Core Plus Fixed-Income Bradford & Marzec LLC (Bradford & Marzec) 16.8%<br />

Core Fixed-Income C.S. McKee, LP (C.S. McKee) 11.2%<br />

Liquidity Strategy N/A* 2.0%<br />

*PI will be responsible for the day-to-day management of the Liquidity Strategy.<br />

Domestic Large-Cap Core (Epoch). Epoch’s security selection process is focused on free cash flow metrics as opposed to<br />

traditional accounting-based metrics. Epoch will seek to produce superior risk-adjusted equity returns for this segment of the New<br />

Discovery <strong>Portfolio</strong> by identifying companies with a consistent, straightforward ability to both generate free cash flow and to<br />

properly allocate that cash flow among internal reinvestment opportunities, acquisitions dividends, share repurchases and debt<br />

pay downs.<br />

Epoch seeks to identify potential investment opportunities through both qualitative and quantitative analysis. The investment<br />

process seeks to uncover companies with improving business fundamentals resulting in increasing free cash flow. The analysis<br />

incorporates such items as valuation, revenue growth, and gross margin improvement. Other catalysts may include management<br />

changes, purchases or sales by corporate insiders, restructuring/spin-offs, and recent news items. Under normal circumstances, no<br />

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