AST BlackRock Value Portfolio - Prudential Annuities

they believe are undervalued or otherwise offer significant potential for capital appreciation, and companies that they believe
offer the potential for capital appreciation based on novel, superior, or niche products or services, operating characteristics,
quality of management, an entrepreneurial management team, their having gone public in recent years, opportunities provided by
mergers, divestitures, new management, or other factors.
INVESTMENT GRADE FIXED-INCOME INVESTMENTS. The Portfolio may invest in the debt securities of issuers located anywhere
in the world that are believed to offer the potential for attractive capital appreciation, current income, or both. The debt securities
in which the Portfolio may invest include: (i) securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities; (ii) debt securities of domestic or foreign corporations; (iii) mortgage-backed and other asset-backed securities;
(iv) obligations of international agencies or supranational entities; (v) debt securities convertible into equity securities;
(vi) inflation-indexed bonds; (vii) structured notes, including hybrid or “indexed” securities, event-linked bonds, and loan
participations or assignments; and (viii) delayed funding loans and revolving credit facilities. The fixed-income securities in which
the Portfolio may invest include securities that make payments of: (i) interest at fixed rates or at floating or variable rates or
(ii) principal or interest at fixed intervals or only at maturity or upon the occurrence of stated events or contingencies.
SHORT-TERM INVESTMENTS. The Portfolio may invest in short-term, high quality investments, including, without limitation,
commercial paper, bankers’ acceptances, certificates of deposit, bank time deposits, and repurchase agreements. The Portfolio also
may invest without limitation in money market funds or similar pooled investments, including those managed, advised, or
sponsored by the Investment Managers or their respective affiliates.
Principal Investments (Alternative Asset Classes). The alternative asset classes in which Portfolio assets may be invested are
described below.
EMERGING MARKETS DEBT. The Portfolio may invest in fixed-income instruments of issuers that are economically tied to
emerging markets countries. Such securities may be denominated in non-U.S. currencies and the U.S. dollar. A security is
economically tied to an emerging market country if it: (i) is principally traded on the securities markets of an emerging markets
country, or (ii) the issuer is organized or principally operates in an emerging markets country, derives a majority of its income from
its operations within an emerging markets country, or has a majority of its assets in an emerging markets country.
HIGH YIELD DEBT SECURITIES. The Portfolio may invest in debt or fixed-income securities rated below “investment grade” (also
referred to as “junk bonds” or “high-yield bonds”) that are issued by U.S. or non-U.S. corporations, governments, government
agencies, or supranational organizations. Generally, lower rated securities pay higher yields that highly rated securities to
compensate investors for the higher risk.
REAL ESTATE. The Portfolio may invest in real-estate related securities, such as equity or mortgage real estate investment trusts
(REITs), real estate operating companies, brokers, developers, and builders of residential, commercial, and industrial properties;
property management firms; finance, mortgage, and mortgage servicing firms; construction supply and equipment manufacturing
companies; and firms dependent on real estate holdings for revenues and profits, including lodging, leisure, timber, mining, and
agriculture companies.
ABSOLUTE RETURN. The Portfolio may invest in portfolios of securities managed to provide an investment return that is generally
independent of changes in the values of broad-based equity securities indices. Those portfolios may include long and short equity
or fixed-income positions and investments in derivatives. Absolute return investments will normally be selected with the intent of
providing predictable, hedged returns over time.
INFRASTRUCTURE. The Portfolio may invest in securities of U.S. and non-U.S. issuers providing exposure to infrastructure
investment. Infrastructure investments may be related to physical structures and networks that provide necessary services to
society, such as transportation and communications networks, water and energy utilities, and public service facilities.
COMMODITIES. The Portfolio may make investments that are intended to provide exposure to one or more physical commodities
or securities indices. Commodities investments may include, by way of example, futures contracts, commodity index-linked
instruments, suchas commodity swaps, options on futures contracts, and forward contracts, and securities designed to provide
commodity-based exposures.
CURRENCIES. The Portfolio may take investment positions in various foreign currencies, including actual holdings of those
currencies. These investments may also forward contracts, futures contracts, swap agreements, and option contracts with respect
to foreign currencies.
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