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

Reverse Repurchase Agreements. Each Portfolio may use reverse repurchase agreements, where the Portfolio sells a security with an
obligation to repurchase it at an agreed-upon price and time.
Dollar Rolls. Each Portfolio may enter into dollar rolls.
Bank Loans. Each Portfolio may invest in bank loans. Bank loans include fixed and floating rate loans that are privately negotiated
between a corporate borrower and one or more financial institutions, including, but not limited to, term loans, revolvers, delayed
draw loans, synthetic letters of credit, and other instruments issued in the bank loan market. Each Portfolio may acquire interests in
loans directly (by way of assignment from the selling institution) or indirectly (by way of the purchase of a participation interest from
the selling institution). Under a bank loan assignment, a Portfolio generally will succeed to all the rights and obligations of an
assigning lending institution and becomes a lender under the loan agreement with the relevant borrower in connection with that
loan. Under a bank loan participation, the Portfolio generally will have a contractual relationship only with the lender, not with the
relevant borrower. As a result, a Portfolio generally will have the right to receive payments of principal, interest, and any fees to
which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the
relevant borrower.
When-Issued and Delayed-Delivery Securities. Each Portfolio may purchase securities, including money market obligations or other
obligations on a when-issued or delayed-delivery basis.
Money Market Instruments. Each Target Maturity Portfolio may invest in money market instruments, including commercial paper of a
U.S. or foreign company, foreign government securities, certificates of deposit, bankers’ acceptances, time deposits of domestic and
foreign banks, and obligations issued or guaranteed by the U.S. government or its agencies. These obligations may be U.S. dollardenominated
or denominated in a foreign currency.
TRACERS and TRAINS. Tradable Custodial Receipts or TRACERS represent an interest in a basket of investment grade corporate
credits. Targeted Return Index Securities or TRAINS represent an interest in a basket of high yield securities of varying credit quality.
Interests in TRACERS and TRAINS provide a cost-effective alternative to purchasing individual issues.
Yankee Obligations. As set forth above, each Portfolio may invest up to 50% of its total assets in Yankee obligations. Yankee
obligations are U.S. dollar-denominated debt securities of foreign corporations issued in the United States and U.S. dollardenominated
debt securities issued or guaranteed as to payment of principal and interest by governments, quasi-governmental
entities, government agencies, and other governmental entities of foreign countries and supranational entities, which securities are
issued in the United States. Debt securities of quasi-governmental entities are issued by entities owned by either a national, state, or
equivalent government or are obligations of a political unit that is not backed by the national government’s full faith and credit and
general taxing powers.
Additional Strategies. Each Target Maturity Portfolio follows certain policies when it borrows money (each Target Maturity Portfolio
can borrow up to 33 1/3% of the value of its total assets); lends its securities to others (each Target Maturity Portfolio can lend up to
33 1/3% of the value of its total assets); and holds illiquid securities (each Target Maturity 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). The Subadviser will seek to maintain an adequate level of
portfolio liquidity for each Target Maturity Portfolio, based on all relevant facts and circumstances, with consideration given to a
Target Maturity Portfolio’s exposure to illiquid securities in the event the market value of such securities exceeds 15% of the Target
Maturity 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. Each Target Maturity Portfolio is subject to certain other investment restrictions that are fundamental
policies, which means they cannot be changed without shareholder approval. For more information about these restrictions, please
see the SAI.
AST Cohen & Steers Realty Portfolio
Investment Objective: to maximize total return through investment in real estate securities.
Principal Investment Policies:
The Portfolio will have a non-fundamental policy to invest, under normal circumstances, at least 80% of the value of its net assets in
securities of real estate related issuers. The Portfolio pursues its investment objective of maximizing total return by seeking, with
approximately equal emphasis, capital growth and current income.
Generally, the equity securities of real estate related issuers will consist of:
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