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

More documents

Recommendations

Info

Annual Total Returns 20% 15% 11.57 10% 8.87 9.22 8.31 16.53 Best Quarter: 2nd Quarter of 2009 8.30% 5% 0 -5% 2000 2001 2002 5.32 2003 4.96 2004 2.50 2005 3.74 2006 2007 -2.26 2008 2009 Worst Quarter: 3rd Quarter of 2008 -3.58% Average Annual Total Returns (For the periods ended December 31, 2009) 1 year 5 years 10 years Portfolio 16.53% 5.58% 6.76% Index Barclays Capital U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) 5.93 4.97 6.33 MANAGEMENT OF THE PORTFOLIO Investment Managers Subadviser Portfolio Manager Title Service Date Prudential Investments LLC Pacific Investment Management Company LLC William H. Gross, CFA AST Investment Services, Inc. Managing Director, Portfolio Manager, and Chief Investment Officer December 1993 TAX INFORMATION Contract owners should consult their Contract prospectus for information on the federal tax consequences to them. In addition, Contract owners may wish to consult with their own tax advisors as to the tax consequences of investments in the Contracts and the Portfolio, including the application of state and local taxes. The Portfolio currently intends to be treated as a partnership for federal income tax purposes. As a result, the Portfolio’s income, gains, losses, deductions, and credits are “passed through” pro rata directly to the participating insurance companies and retain the same character for federal income tax purposes. FINANCIAL INTERMEDIARY COMPENSATION If you purchase your Contract through a broker-dealer or other financial intermediary (such as a bank), the issuing insurance company, the Portfolio or their related companies may pay the intermediary for the sale of the Contract, the selection of the Portfolio and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Contract over another investment or insurance product, or to recommend the Portfolio over another investment option under the Contract. Ask your salesperson or visit your financial intermediary’s website for more information. 156
SUMMARY: AST PRESERVATION ASSET ALLOCATION PORTFOLIO INVESTMENT OBJECTIVES The investment objective of the Portfolio is to obtain the highest potential total return consistent with its specified level of risk tolerance. PORTFOLIO FEES AND EXPENSES The table below shows the fees and expenses that you may pay if you invest in shares of the Portfolio. The table does not include Contract charges. Because Contract charges are not included, the total fees and expenses that you will incur will be higher than the fees and expenses set forth in the table. See your Contract prospectus for more information about Contract charges. Annual Portfolio Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Management Fees .15% Distribution (12b-1) Fees Other Expenses .02% Acquired Fund Fees & Expenses .85% Total Annual Portfolio Operating Expenses 1.02% None Example. The following example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds. The table does not include Contract charges. Because Contract charges are not included, the total fees and expenses that you will incur will be higher than the fees and expenses set forth in the example. See your Contract prospectus for more information about Contract charges. The example assumes that you invest $10,000 in the Portfolio for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Portfolio’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: 1 Year 3 Years 5 Years 10 Years AST Preservation Asset Allocation $104 $325 $563 $1,248 Portfolio Turnover. The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual portfolio operating expenses or in the example, affect the Portfolio’s performance. During the most recent fiscal year ended December 31, the Portfolio’s turnover rate was 21% of the average value of its portfolio. INVESTMENTS, RISKS AND PERFORMANCE Principal Investment Strategies. The Portfolio is a “fund of funds.” That means that the Portfolio invests primarily in one or more mutual funds in accordance with its own asset allocation strategy. Other mutual funds in which in which the Portfolio may invest are collectively referred to as the “Underlying Portfolios.” Consistent with the investment objectives and policies of the Portfolio, other mutual funds may from time to time be added to, or removed from, the list of Underlying Portfolios that may be used in connection with the Portfolio. Currently, the only Underlying Portfolios in which the Portfolio invests are other Portfolios of the Fund and certain money market funds advised by an Investment Manager or one of its affiliates. The asset allocation strategy is determined by Prudential Investments LLC (PI) and Quantitative Management Associates LLC (QMA). As a general matter, QMA begins by constructing a neutral allocation for the Portfolio. Each neutral allocation initially divides the assets for the Portfolio across three broad-based securities benchmark indexes. These three benchmark indexes are the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. Generally, the neutral allocation will emphasize investments in the debt/money market asset class. The selection of specific combinations of Underlying Portfolios for the Portfolio generally will be determined by PI. PI will employ various quantitative and qualitative research methods to establish weighted combinations of Underlying Portfolios that are consistent with the neutral allocation for the Portfolio. QMA will then perform its own forward-looking assessment of macroeconomic, market, financial, security valuation, and other factors. As a result of this assessment, QMA will further adjust the neutral allocation and the preliminary Underlying Portfolio weights for the Portfolio based upon its views on certain factors. 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 157
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:
Page 73 and 74:
Annual Total Returns 0 Best Quarter
Page 75 and 76:
action based upon the relevant fact
Page 77 and 78:
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 113 and 114:
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 and 124:
SUMMARY: AST HORIZON GROWTH ASSET A
Page 125 and 126:
Derivatives risk. A derivative is 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 133 and 134:
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 141 and 142: Foreign investment risk. Investment
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 163 and 164: Annual Total Returns 45% 30% 15% 27
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 179 and 180: SUMMARY: AST NEUBERGER BERMAN SMALL
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: credit risk and liquidity risk. Whe
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 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 221 and 222: SUMMARY: AST VALUE PORTFOLIO INVEST
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

Create successful ePaper yourself

Delete template?

Save as template?