AST BlackRock Value Portfolio - Prudential Annuities

Additional Strategies. The Portfolio follows certain policies when it borrows money (the Portfolio can borrow up to 33 1/3% of the
value of its total assets); lends its securities to others (the Portfolio can lend up to 33 1/3% of the value of its total assets); and holds
illiquid securities (the Portfolio may invest up to 15% of its net assets in illiquid securities, including securities with legal or
contractual restrictions on resale, those without a readily available market and repurchase agreements with maturities longer than
seven days). T. Rowe Price will seek to maintain an adequate level of portfolio liquidity for the Portfolio, based on all relevant facts
and circumstances, with consideration given to the Portfolio’s exposure to illiquid securities in the event the market value of such
securities exceeds 15% of the Portfolio’s net assets due to an increase in the aggregate value of its illiquid securities and/or a
decline in the aggregate value of its other portfolio securities.
AST T. ROWE PRICE GLOBAL BOND PORTFOLIO
Investment Objective: to provide high current income and capital growth by investing in high-quality, foreign and
U.S. dollar-denominated bonds.
Principal Investment Policies:
The Portfolio has a non-fundamental policy to invest, under normal circumstances, at least 80% of the value of its assets in fixed
income securities. To achieve its objectives, the Portfolio invests primarily in all types of bonds including those issued or
guaranteed by the U.S. or foreign governments or their agencies and by foreign authorities, provinces and municipalities as well
as investment grade corporate bonds and mortgage-related and asset-backed securities and high yield bonds of U.S. and
foreign issuers.
The Portfolio may also invest in convertible securities and corporate commercial paper; inflation-indexed bonds issued by both
governments and corporations; structured notes, including hybrid or “indexed” securities, event-linked bonds and bank debt and
loan participations; delayed portfolio loans and revolving credit securities; bank certificates of deposit, fixed time deposits and
bankers’ acceptances; repurchase agreements and reverse repurchase agreements; debt securities issued by federal, state or local
governments and their agencies and government-sponsored enterprises; obligations of foreign governments or their subdivisions,
agencies and government-sponsored enterprises; and obligations of international agencies or supranational entities.
The Portfolio seeks to moderate price fluctuation by actively managing its maturity structure and currency exposure. The
Subadviser bases its investment decisions on fundamental market factors, currency trends, and credit quality. The Portfolio
generally invests in countries where the combination of fixed-income returns and currency exchange rates appears attractive, or, if
the currency trend is unfavorable, where the Subadviser believes that the currency risk can be minimized through hedging. The
Portfolio’s high-quality bonds must, at the time of purchase, have received an investment-grade rating from at least one rating
agency (or if unrated, must have a Subadviser equivalent rating) but could be rated below investment-grade by other agencies.
Such bonds are called “split-rated”). Although the Portfolio expects to maintain an intermediate-to-long weighted average
maturity, there are no maturity restrictions on the overall portfolio or on individual securities. The Portfolio may and frequently
does engage in foreign currency transactions such as forward foreign currency exchange contracts, hedging its foreign currency
exposure back to the dollar or against other foreign currencies (“cross-hedging”). The Subadviser also attempts to reduce currency
risks through diversification among foreign securities and active management of currency exposures. The Subadviser may use
foreign forward currency contracts (“forwards”) to hedge the risk to the Portfolio when foreign currency exchange rate movements
are expected to be unfavorable to U.S. investors. The Subadviser may use forwards in an effort to benefit from a currency believed
to be appreciating in value versus other currencies. The Subadviser may also invest in currencies or forwards in cases where the
Portfolio does not hold bonds denominated in that currency, for example, in situations where the Subadviser wants currency
exposure to a particular market but believes that the bonds are unattractive. Under certain circumstances, the Subadviser may
commit a substantial portion of the Portfolio to currencies and forwards If the Subadviser’s forecast of currency movements proves
wrong, this investment activity may cause a loss. Also, for emerging markets, it is often not possible to hedge the currency risk
associated with emerging market bonds because their currency markets are not sufficiently developed.
The Portfolio may also invest up to 20% of its assets in the aggregate in below investment-grade, high-risk bonds (“junk bonds”)
and emerging market bonds. Some emerging market bonds, such as Brady Bonds, may be denominated in U.S. dollars. In
addition, the Portfolio may invest up to 30% of its assets in mortgage-related (including mortgage-dollar rolls and derivatives, such
as collateralized mortgage obligations and stripped mortgage securities) and asset-backed securities.
Like any fixed income fund, the value of the Portfolio will fluctuate in response to changes in market interest rates and the credit
quality of particular companies. International fixed income investing, however, involves additional risks that can increase the
potential for losses. These additional risks include varying stages of economic and political development of foreign countries,
differing regulatory and accounting standards in non-U.S. markets, and higher transaction costs. Because a substantial portion of
the Portfolio’s investments are denominated in foreign currencies, exchange rates are also likely to have a significant impact on
353