Advanced Series Trust AST Academic Strategies Asset ... - Prudential

More documents

Recommendations

Info

It is expected that the Portfolio’s subadviser will employ various tactical asset allocation strategies in connection with their establishment of target asset allocations. In general terms, tactical asset allocation involves occasional, short-term, tactical deviations from the base asset class mix in order to capitalize on unusual or exceptional investment opportunities. Redemptions of Underlying Fund Portfolio shares, however, are subject to certain limits established by the Investment Managers from time to time. These limits may adversely affect the Portfolio’s investment performance by hindering the subadviser’s ability to utilize its tactical asset allocation strategy to capitalize on unusual or exceptional investment opportunities. Principal Risks of Investing in the Portfolio. The risks identified below are the principal risks of investing in the Portfolio. All investments have risks to some degree and it is possible that you could lose money by investing in the Portfolio. An investment in the Portfolio is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. While the Portfolio makes every effort to achieve its objective, it can’t guarantee success. Fund of funds risk. In addition to the risks associated with the indirect investment in the Underlying Portfolios, the Portfolio is subject to the following additional risks: to the extent the Portfolio concentrates its assets among Underlying Portfolios that invest principally in one or several asset classes, the Portfolio may from time to time underperform mutual funds exposed primarily to other asset classes; the ability of the Portfolio to achieve its investment objective depends on the ability of the selected Underlying Portfolios to achieve their investment objectives; and the performance of the Portfolio may be affected by large purchases and redemptions of Underlying Portfolio shares. Equity securities risk. There is the risk that the value or price of a particular stock or other equity or equity-related security owned by a Portfolio could go down and you could lose money. In addition to an individual stock losing value, the value of the equity markets or a sector of those markets in which a Portfolio invests could go down. Fixed income securities risk. Investment in fixed income securities involves a variety of risks, including the risk that an issuer or guarantor of a security will be unable to pay some or all of the principal and interest when due (credit risk); the risk that the Portfolio may not be able to sell some or all of the securities its holds, either at the price it values the security or at any price (liquidity risk); and the risk that the rates of interest income generated by the fixed income investments of a Portfolio may decline due to a decrease in market interest rates and that the market prices of the fixed income investments of a Portfolio may decline due to an increase in market interest rates (interest rate risk). Asset-backed securities risk. Asset-backed securities are fixed income securities that represent an interest in an underlying pool of assets, such as credit card receivables. Like traditional fixed income securities, asset-backed securities are subject to interest rate risk, credit risk and liquidity risk. When the underlying pools of assets consist of debt obligations, there is a risk that those obligations will be repaid sooner than expected (prepayment risk) or later than expected (extension risk), both of which may result in lower than expected returns. Mortgage-backed securities risk. A mortgage-backed security is a specific type of asset-backed security - one backed by mortgage loans on residential and/or commercial real estate. Therefore, they have many of the risk characteristics of asset-backed securities, including prepayment and extension risks, as well as interest rate, credit and liquidity risk. Because they are backed by mortgage loans, mortgage-backed securities also have risks related to real estate, including significant sensitivity to changes in real estate prices and interest rates and, in the case of commercial mortgages, office and factory occupancy rates. High-yield risk. Investments in fixed-income securities rated below investment grade and unrated securities of similar credit quality (commonly known as “junk bonds”) may be subject to greater levels of credit and liquidity risk than investments in investment grade securities. High-yield securities are considered predominantly speculative with respect to the issuer’s continuing ability to make principal and interest payments. Foreign investment risk. Investment in foreign securities generally involve more risk than investing in securities of U.S. issuers. Foreign investment risk includes: Changes in currency exchange rates may affect the value of foreign securities held by a Portfolio; securities of issuers located in emerging markets tend to have volatile prices and may be less liquid than investments in more established markets; foreign markets generally are more volatile than U.S. markets, are not subject to regulatory requirements comparable to those in the U.S, and are subject to differing custody and settlement practices; foreign financial reporting standards usually differ from those in the U.S.; foreign exchanges are smaller and less liquid than the U.S. market; political developments may adversely affect the value of a Portfolio’s foreign securities; and foreign holdings may be subject to special taxation and limitations on repatriating investment proceeds. Market and management risk. Markets in which the Portfolio invests may experience volatility and go down in value, and possibly sharply and unpredictably. All decisions by an adviser require judgment and are based on imperfect information. Additionally, the investment techniques, risk analysis and investment strategies used by an adviser in making investment decisions for the Portfolio may not produce the desired results. 90
Derivatives risk. A derivative is a financial contract, the value of which depends upon, or is derived from, the value of an underlying asset, reference rate, or index. The use of derivatives involves a variety of risks, including: the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Portfolio; certain derivatives and related trading strategies create debt obligations similar to borrowings, and therefore create, leverage, which can result in losses to a Portfolio that exceed the amount the Portfolio originally invested; certain exchange-traded derivatives may be difficult or impossible to buy or sell at the time that the seller would like, or at the price that the seller believes the derivative is currently worth, and privately negotiated derivatives may be difficult to terminate or otherwise offset; derivatives used for hedging may reduce losses but also reduce or eliminate gains or cause losses if the market moves in a manner different from that anticipated by the Portfolio; and commodity-linked derivative instruments may be more volatile than the prices of investments in traditional equity and debt securities. Asset Transfer Program Risk. The Portfolio is used in connection with certain benefit programs under Prudential variable annuity contracts, including, certain “guaranteed minimum accumulation benefit” programs and certain “guaranteed minimum withdrawal benefit” programs. In order for Prudential to manage the guarantees offered in connection with these benefit programs, Prudential will monitor each contract owner’s account value from time to time and will systematically transfer amounts between the Portfolio and certain bond funds (or, for one guaranteed minimum withdrawal benefit program, the insurer’s general account) as required by certain non-discretionary mathematical formulas. Such pre-determined mathematical formulas may, however, result in large-scale asset flows into and out of the Portfolio and subject the Portfolio to certain risks. Such pre-determined mathematical formulas could adversely affect a Portfolio’s investment performance by requiring the subadviser to purchase and sell securities at inopportune times and by otherwise limiting the subadviser’s ability to fully implement the Portfolio’s investment strategies. In addition, these predetermined mathematical formulas may result in relatively small asset bases and relatively high operating expense ratios for the Portfolios compared to other similar funds. Expense risk. Your actual cost of investing in a Portfolio may be higher than the expenses shown in “Annual Portfolio Operating Expenses,” above for a variety of reasons, including, for example, if a Portfolio’s average net assets decreases significantly, such as significant redemptions by another Portfolio that may invest in your Portfolio. Past Performance. A number of factors, including risk, can affect how the Portfolio performs. The bar chart and table provides some indication of the risks of investing in the Portfolio by showing changes in the Portfolio’s performace from year to year and by showing how the Portfolio’s average annual returns for 1 year and since inception of the Portfolio compare with those of a broad measure of market performance. Past performance does not mean that the Portfolio will achieve similar results in the future. The annual returns and average annual returns shown in the chart and table are after deduction of expenses and do not include Contract charges. If Contract charges were included, the returns shown would have been lower than those shown. Consult your Contract prospectus for information about Contract charges. The table also demonstrates how the Portfolio’s average annual returns compare to the returns of a custom blended stock index which includes the stocks of companies with similar investment objectives. The Portfolio’s custom blended stock index consists of the Russell 3000 Index (60%), MSCI EAFE Index (10%), and the Barclays Capital Aggregate Bond Index (30%). The manager determined the weight of each index comprising the blended indexes. Annual Total Returns 40% 30% 20% 10% 0 -10% -20% -30% -40% -30.70 2008 26.67 2009 Best Quarter: 2nd Quarter of 2009 15.34% Worst Quarter: 4th Quarter of 2008 -15.73% 91
Page 1 and 2:
Advanced Series Trust AST Academic
Page 3 and 4:
More detailed information relating
Page 5 and 6:
Information About GSAM Portfolio Ma
Page 7 and 8:
Advanced Series Trust Supplement da
Page 9 and 10:
IV. Secondary Performance Benchmark
Page 11 and 12:
esponsible for managing the remaini
Page 13 and 14:
For both CBOs and CLOs, the cashflo
Page 15 and 16:
The High Yield Portfolio may also m
Page 17 and 18:
ADVANCED SERIES TRUST PROSPECTUS DA
Page 19 and 20:
Weighted median market capitalizati
Page 21 and 22:
ADVANCED SERIES TRUST PROSPECTUS DA
Page 23 and 24:
Investment Company Act of 1940 (the
Page 25 and 26:
PIMCO believes to be relevant. PIMC
Page 27 and 28:
companies located throughout the wo
Page 29 and 30:
until the deal closes. • While mo
Page 31 and 32:
Private Equity. Private equity fund
Page 33 and 34:
II. AST High Yield Portfolio The Bo
Page 35 and 36:
Advanced Series Trust Line 2 Line 3
Page 37 and 38:
SUMMARY: AST ACADEMIC STRATEGIES AS
Page 39 and 40:
Liquidity and valuation risk. From
Page 41 and 42:
SUMMARY: AST ADVANCED STRATEGIES PO
Page 43 and 44:
Short sale risk. The Portfolio’s
Page 45 and 46:
SUMMARY: AST AGGRESSIVE ASSET ALLOC
Page 47 and 48:
and certain bond funds (or, for one
Page 49 and 50:
SUMMARY: AST ALLIANCEBERNSTEIN CORE
Page 51 and 52:
Average Annual Total Returns (For t
Page 53 and 54:
may not produce the desired results
Page 55 and 56:
SUMMARY: AST AMERICAN CENTURY INCOM
Page 57 and 58:
Average Annual Total Returns (For t
Page 59 and 60:
classes; the ability of the Portfol
Page 61 and 62:
FINANCIAL INTERMEDIARY COMPENSATION
Page 63 and 64:
action based upon the relevant fact
Page 65 and 66:
SUMMARY: AST BOND PORTFOLIO 2016 IN
Page 67 and 68:
MANAGEMENT OF THE PORTFOLIO Investm
Page 69 and 70:
government agency. While the Portfo
Page 71 and 72:
SUMMARY: AST BOND PORTFOLIO 2018 IN
Page 73 and 74: Annual Total Returns 0 Best Quarter
Page 75 and 76: action based upon the relevant fact
Page 77 and 78: SUMMARY: AST BOND PORTFOLIO 2020 IN
Page 79 and 80: MANAGEMENT OF THE PORTFOLIO Investm
Page 81 and 82: government agency. While the Portfo
Page 83 and 84: SUMMARY: AST CAPITAL GROWTH ASSET A
Page 85 and 86: Past Performance. A number of facto
Page 87 and 88: Fixed income securities risk. Inves
Page 89 and 90: SUMMARY: AST CLS MODERATE ASSET ALL
Page 91 and 92: The annual returns and average annu
Page 93 and 94: Market and management risk. Markets
Page 95 and 96: SUMMARY: AST FEDERATED AGGRESSIVE G
Page 97 and 98: Expense risk. Your actual cost of i
Page 99 and 100: Strategy Broad Market Duration Stra
Page 101 and 102: Annual Total Returns 30% 20% 10% 21
Page 103 and 104: Mid-capitalization company risk. Th
Page 105 and 106: SUMMARY: AST FIRST TRUST CAPITAL AP
Page 107 and 108: The table also demonstrates how the
Page 109 and 110: Foreign investment risk. Investment
Page 111 and 112: SUMMARY: AST GOLDMAN SACHS CONCENTR
Page 115 and 116: comparable to those in the U.S, and
Page 117 and 118: SUMMARY: AST GOLDMAN SACHS SMALL-CA
Page 119 and 120: Annual Total Returns 60% 45% 33.85
Page 121 and 122: Asset-backed securities risk. Asset
Page 123: SUMMARY: AST HORIZON GROWTH ASSET A
Page 127 and 128: SUMMARY: AST HORIZON MODERATE ASSET
Page 129 and 130: Derivatives risk. A derivative is a
Page 131 and 132: SUMMARY: AST INTERNATIONAL GROWTH P
Page 135 and 136: Market and management risk. Markets
Page 137 and 138: SUMMARY: AST INVESTMENT GRADE BOND
Page 139 and 140: Past Performance. A number of facto
Page 145 and 146: epatriating investment proceeds. Ma
Page 147 and 148: SUMMARY: AST JPMORGAN STRATEGIC OPP
Page 149 and 150: loans, mortgage-backed securities a
Page 151 and 152: SUMMARY: AST LARGE-CAP VALUE PORTFO
Page 153 and 154: Average Annual Total Returns (For t
Page 155 and 156: in market interest rates and that t
Page 157 and 158: FINANCIAL INTERMEDIARY COMPENSATION
Page 159 and 160: established markets; foreign market
Page 161 and 162: SUMMARY: AST MFS GLOBAL EQUITY PORT
Page 165 and 166: established markets; foreign market
Page 167 and 168: SUMMARY: AST MID-CAP VALUE PORTFOLI
Page 171 and 172: Asset-backed securities risk. Asset
Page 173 and 174: SUMMARY: AST NEUBERGER BERMAN MID-C
Page 175 and 176:
Annual Total Returns 45% 30% 15% 30
Page 177 and 178:
Foreign investment risk. Investment
Page 179 and 180:
SUMMARY: AST NEUBERGER BERMAN SMALL
Page 181 and 182:
Page 183 and 184:
usually differ from those in the U.
Page 185 and 186:
SUMMARY: AST PIMCO LIMITED MATURITY
Page 187 and 188:
Annual Total Returns 11% 10% 9% 8%
Page 189 and 190:
credit risk and liquidity risk. Whe
Page 191 and 192:
SUMMARY: AST PRESERVATION ASSET ALL
Page 193 and 194:
will monitor each contract owner’
Page 195 and 196:
SUMMARY: AST QMA US EQUITY ALPHA PO
Page 197 and 198:
The annual returns and average annu
Page 199 and 200:
which could impact the Portfolio. F
Page 201 and 202:
Blended Index (reflects no deductio
Page 203 and 204:
Page 205 and 206:
SUMMARY: AST SMALL CAP VALUE PORTFO
Page 207 and 208:
Annual Total Returns 45% 30% 21.86
Page 209 and 210:
High-yield risk. Investments in fix
Page 211 and 212:
and related services. These payment
Page 213 and 214:
Asset-backed securities risk. Asset
Page 215 and 216:
SUMMARY: AST T. ROWE PRICE LARGE CA
Page 217 and 218:
Portfolio 53.37% 3.95% -2.13% Index
Page 219 and 220:
Page 221 and 222:
SUMMARY: AST VALUE PORTFOLIO INVEST
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
ABOUT THE FUND ABOUT THE FUND AND I
Page 229 and 230:
■ ■ ■ Liquidity and valuation
Page 231 and 232:
■ There is a potential conflict o
Page 233 and 234:
MORE DETAILED INFORMATION ON HOW TH
Page 235 and 236:
AST Marsico Capital Growth AST T. R
Page 237 and 238:
AST Global Real Estate Invests prim
Page 239 and 240:
Global Macro (First Quadrant). This
Page 241 and 242:
strategy. Second, QMA draws on its
Page 243 and 244:
e classified as developed markets.
Page 245 and 246:
Mortgage-Related and Other Asset-Ba
Page 247 and 248:
Principal Investment Policies: The
Page 249 and 250:
AST Bond Portfolio 2016 AST Bond Po
Page 251 and 252:
amortizing mortgage securities offe
Page 253 and 254:
■ ■ ■ ■ common stocks (incl
Page 255 and 256:
AST Preservation Asset Allocation P
Page 257 and 258:
4. International Value Strategy. Th
Page 259 and 260:
To select the stocks for this strat
Page 261 and 262:
“Dow Jones Corporate Bond Index,
Page 263 and 264:
AST Global Real Estate Portfolio In
Page 265 and 266:
Futures, Options and Other Derivati
Page 267 and 268:
Futures, Options and Other Derivati
Page 269 and 270:
not receive any payments (including
Page 271 and 272:
William Blair. William Blair genera
Page 273 and 274:
approach. The objective of the stra
Page 275 and 276:
Growth Portfolio, the Subadviser al
Page 277 and 278:
countries outside of the United Sta
Page 279 and 280:
Hotchkis and Wiley normally focuses
Page 281 and 282:
Special Situations. The Portfolio m
Page 283 and 284:
summarized below: WEDGE normally em
Page 285 and 286:
Asset-Backed Securities. The Portfo
Page 287 and 288:
Other Investments: Although equity
Page 289 and 290:
or profits from, emerging market co
Page 291 and 292:
in value. When a Portfolio makes a
Page 293 and 294:
to 10% of its total assets in fixed
Page 295 and 296:
in return for a premium, one party
Page 297 and 298:
Potential Conflicts: Side-by-Side M
Page 299 and 300:
companies. Absolute Return. The Por
Page 301 and 302:
and high return on invested capital
Page 303 and 304:
ecause their currency markets are n
Page 305 and 306:
The Portfolio may sell securities f
Page 307 and 308:
Implementation of Target Asset Allo
Page 309 and 310:
fixed-income security. For example,
Page 311 and 312:
e subject to liquidity risk. Foreig
Page 313 and 314:
a Portfolio may try to reduce risk
Page 315 and 316:
INVESTMENT MANAGEMENT FEES Set fort
Page 317 and 318:
without prior notice. ***Includes f
Page 319 and 320:
First Quadrant L.P. (First Quadrant
Page 321 and 322:
vehicles advised by affiliated and
Page 323 and 324:
Devang Gambhirwala is a Principal a
Page 325 and 326:
T. Rowe Price Segment. T. Rowe Pric
Page 327 and 328:
1991 through 1996. Before joining B
Page 329 and 330:
candidate for the CFA. QMA Ted Lock
Page 331 and 332:
investments in private equity trans
Page 333 and 334:
Andrew Jessop is an Executive Vice
Page 335 and 336:
Portfolio Manager, joined Hotchkis
Page 337 and 338:
AST Neuberger Berman Small-Cap Grow
Page 339 and 340:
MBA from the University of Pennsylv
Page 341 and 342:
Mr. Brennan joined T. Rowe Price in
Page 343 and 344:
Fund and its transfer agent also re
Page 345 and 346:
Short-term debt securities with rem
Page 347 and 348:
PAYMENTS TO AFFILIATES PI and AST a
Page 349 and 350:
AST Academic Strategies Asset Alloc
Page 351 and 352:
AST Aggressive Asset Allocation Por
Page 353 and 354:
AST AllianceBernstein Growth & Inco
Page 355 and 356:
AST Balanced Asset Allocation Portf
Page 357 and 358:
AST Bond Portfolio 2018 January 28,
Page 359 and 360:
AST Capital Growth Asset Allocation
Page 361 and 362:
AST CLS Moderate Asset Allocation P
Page 363 and 364:
AST Federated Aggressive Growth Por
Page 365 and 366:
AST First Trust Balanced Target Por
Page 367 and 368:
AST Global Real Estate Portfolio Ma
Page 369 and 370:
AST Goldman Sachs Small-Cap Value P
Page 371 and 372:
AST Horizon Growth Asset Allocation
Page 373 and 374:
AST International Growth Portfolio
Page 375 and 376:
AST Investment Grade Bond Portfolio
Page 377 and 378:
AST JPMorgan Strategic Opportunitie
Page 379 and 380:
AST Lord Abbett Bond-Debenture Port
Page 381 and 382:
AST MFS Growth Portfolio Year Ended
Page 383 and 384:
AST Neuberger Berman Mid-Cap Growth
Page 385 and 386:
AST PIMCO Limited Maturity Bond Por
Page 387 and 388:
AST Preservation Asset Allocation P
Page 389 and 390:
AST Schroders Multi-Asset World Str
Page 391 and 392:
AST T. Rowe Price Asset Allocation
Page 393 and 394:
AST T. Rowe Price Natural Resources
Page 395 and 396:
AST Western Asset Core Plus Bond Po
Page 397 and 398:
APPENDIX I ASSET ALLOCATIONS FOR GR
Page 399 and 400:
APPENDIX III UNDERLYING PORTFOLIO W
Page 401 and 402:
AST Horizon Growth Asset Allocation
Page 403 and 404:
369
Page 405 and 406:
SP-2: Satisfactory capacity to pay
Page 407 and 408:
GLOSSARY PORTFOLIO INDEXES BofA Mer
Page 409 and 410:
Russell 2000 Growth Index. The Russ
Page 411 and 412:
AST First Trust Capital Appreciatio
Page 413 and 414:
Notes 379
Page 415 and 416:
Notes 381
Page 418:
INVESTOR INFORMATION SERVICES: Shar
show all

Advanced Series Trust AST Academic Strategies Asset ... - Prudential

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?