AST BlackRock Value Portfolio - Prudential Annuities

Other Investments:
Although the Portfolio will invest primarily in U.S. common stocks, it may also purchase other types of securities, for example,
preferred stocks, convertible securities, warrants and bonds when considered consistent with the Portfolio’s investment objective
and policies. The Portfolio may purchase preferred stock for capital appreciation where the issuer has omitted, or is in danger of
omitting, payment of the dividend on the stock. Debt securities would be purchased in companies that meet the investment
criteria for the Portfolio.
The Portfolio may invest up to 20% of its total assets in foreign securities, including American Depositary Receipts and securities
of companies in developing countries, and may enter into forward foreign currency exchange contracts (the Portfolio may invest in
foreign cash items in excess of this 20% limit). The Portfolio may enter into stock index or currency futures contracts (or options
thereon) for hedging purposes or to provide an efficient means of regulating the Portfolio’s exposure to the equity markets. The
Portfolio may also write (sell) call and put options and purchase put and call options on securities, financial indices, and
currencies. The Portfolio may invest up to 10% of its total assets in hybrid instruments, which combine the characteristics of
futures, options and securities.
As of January 31, 2012, J.P. Morgan was responsible for managing approximately 42% of the Portfolio’s assets, LMCG was
responsible for managing approximately 32% of the Portfolio’s assets, and ClearBridge was responsible for managing
approximately 26% of the Portfolio’s assets.
AST T. ROWE PRICE ASSET ALLOCATION PORTFOLIO
Investment Objective: a high level of total return by investing primarily in a diversified portfolio of equity and fixed-income
securities.
Principal Investment Policies:
The Portfolio invests, under normal circumstances, approximately 60% of its total assets in equity securities and 40% in fixed
income securities. This mix may vary over shorter time periods; the equity portion may range between 50-70% and the fixed
income portion between 30-50%.
The Subadviser concentrates common stock investments in larger, more established companies, but the Portfolio may include
small and medium-sized companies. The Portfolio’s exposure to smaller companies is not expected to be substantial, and will not
constitute more than 30% of the equity portion of the Portfolio. Up to 50% of the equity portion may be invested in foreign
(non-U.S. dollar denominated) equity securities.
Up to 10% of the equity portion of the Portfolio may be allocated in a real assets segment. The assets of this segment are invested
with the specific intention of providing exposure equity securities of companies that derive a significant portion of their profits or
revenues from, or invest a significant portion of their assets in real assets and activities related to real assets. For these purposes,
real assets are defined broadly and are considered to include any assets that have physical properties, such as energy and natural
resources, real estate, basic materials, equipment, utilities and infrastructure, and commodities.
The fixed income portion of the Portfolio will be allocated among investment grade securities (50-100% of the fixed income
portion); high yield or “junk” bonds (up to 30% of the fixed-income portion); foreign (non-U.S. dollar denominated) high quality
debt securities and emerging market securities (up to 50% of the fixed-income portion); and cash reserves (up to 40% of the
fixed-income portion). Cash reserves may consist of U.S.-dollar and non U.S.-dollar currencies. Notwithstanding the individual
maximum exposures for foreign equity securities (i.e., 50% of equity portion of the Portfolio) and foreign fixed-income securities
(i.e., 50% of fixed-income portion of Portfolio), the maximum combined exposure to foreign equity and fixed-income securities is
30% of the Portfolio’s net assets.
The precise mix of equity and fixed income investments depends on the Subadviser’s outlook for the markets. When deciding
upon asset allocations, the Subadviser may favor fixed income securities if the economy is expected to slow sufficiently to hurt
corporate profit growth. The opposite may be true when strong economic growth is expected. The Portfolio’s investments in
foreign equity and debt securities are intended to provide additional diversification, and the Subadviser will normally have at least
three different countries represented in both the foreign equity and foreign debt portions of the Portfolio.
Securities may be sold for a variety of reasons, such as to effect a change in asset allocation, to secure gains or limit losses, or to
re-deploy assets into more promising opportunities.
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