AST BlackRock Value Portfolio - Prudential Annuities

When borrowing a security for delivery to a buyer, the Portfolio also may be required to pay a premium and other transaction
costs, which would increase the cost of the security sold short. The Portfolio must normally repay to the lender an amount equal to
any dividends or interest that accrues while the loan is outstanding. The amount of any gain will be decreased, and the amount of
any loss increased, by the amount of the premium, dividends, interest or expenses the Portfolio may be required to pay in
connection with the short sale. Also, the lender of a security may terminate the loan at a time when the Portfolio is unable to
borrow the same security for delivery. In that case, the Portfolio would need to purchase a replacement security at the then current
market price or “buy in” by paying the lender an amount equal to the cost of purchasing the security.
Because the Portfolio’s loss on a short sale arises from increases in the value of the security sold short, such loss is theoretically
unlimited. In certain cases, purchasing a security to cover a short position can itself cause the price of the security to rise further,
thereby exacerbating the loss. Conversely, gains on short sales, after transaction and related costs, are generally the difference
between the price at which the Portfolio sold the borrowed security and the price it paid to purchase the security for delivery to
the buyer. By contrast, the Portfolio’s loss on a long position arises from decreases in the value of the security and is limited by the
fact that a security’s value cannot drop below zero.
Potential Conflicts: Side-by-Side Management of Long-Only and Long-Short Strategies. QMA currently manages long-only and
long-short investment strategies, and has created and implemented a Conflicts of Interest Policy to address potential conflicts that
could arise in the event, for example, one portfolio is purchasing a security at the same time another portfolio is selling the
security. The Conflicts of Interest Policy is designed to identify and prevent a potential cross of a security (buy and sell) between
two portfolios (unless otherwise permitted under applicable procedures and federal securities regulations), and is reasonably
designed to ensure that all accounts are treated fairly.
Other Investments:
The Portfolio may invest in American Depository Receipts (“ADRs”), American Depository Shares (“ADSs”) and other similar
receipts or shares traded in U.S. markets to be U.S. securities. Additional investments may include exchange-traded funds (“ETFs”).
The Portfolio may invest in derivatives, such as futures contracts or equity swaps, for hedging purposes (to seek to reduce risk) and
for non-hedging purposes (to seek to increase return consistent with the Fund’s investment objective).
In addition, the Portfolio may also (1) hold common stock or warrants received as the result of an exchange or tender offer, (2) buy
or sell securities on a forward commitment basis, (3) lend its portfolio securities, (4) invest in options, futures, forwards and equity
swaps, (5) engage in reverse repurchase agreements for investment purposes, (6) borrow money for investment purposes, and
(7) borrow money for temporary or emergency purposes.
AST QUANTITATIVE MODELING PORTFOLIO
Investment Objective: to obtain a high potential return while attempting to mitigate downside risk during adverse market
cycles.
Principal Investment Policies:
General. The Portfolio operates as a “fund-of-funds.” That means that the Portfolio invests substantially all of its assets in a
combination of Underlying Portfolios in accordance with its own specialized asset allocation strategy. Currently, the only
Underlying Portfolios in which the Portfolio invests are other investment portfolios of the Trust and certain money market funds
advised by the Investment Managers or their affiliates. Consistent with the investment objectives and policies of the Quantitative
Modeling Portfolio, other mutual funds may from time to time be added to, or removed from, the list of Underlying Portfolios that
may be used as investment options for the Capital Growth Segment or the Fixed-Income Segment.
Capital Growth Segment. Quantitative Management Associates, LLC (QMA), the sole subadviser for the Portfolio, constructs a
neutral allocation for the Capital Growth Segment. The neutral allocation initially divides the assets attributable to the Capital
Growth Segment across three broad-based securities benchmark indexes: the Russell 3000 Index, the Barclays Capital
U.S. Aggregate Bond Index, and the MSCI EAFE Index. The neutral allocation generally emphasizes investments in the equity asset
class. The selection of specific combinations of Underlying Portfolios for the Capital Growth Segment is generally determined by
Prudential Investments, LLC (PI). PI employs various quantitative and qualitative research methods to establish weighted
combinations of Underlying Portfolios that are consistent with the neutral allocation established by QMA. QMA then performs its
own forward-looking assessment of macroeconomic, market, financial, security valuation, and other factors. As a result of this
assessment, QMA further adjusts the neutral allocation and the preliminary Underlying Portfolio weights for the Capital Growth
Segment based upon its views on certain factors, including, but not limited to, the following:
asset class (i.e., increase or decrease allocation to Underlying Portfolios focusing primarily on equity or debt securities and
money market instruments);
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