Advanced Series Trust AST Academic Strategies Asset ... - Prudential
Advanced Series Trust AST Academic Strategies Asset ... - Prudential
Advanced Series Trust AST Academic Strategies Asset ... - Prudential
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more information about the Portfolios’ use of options, see the SAI.<br />
Options. Each Portfolio may purchase and sell put and call options on debt securities, swaps, and currencies traded on U.S. or<br />
foreign securities exchanges or in the over-the-counter market. An option gives the purchaser the right to buy or sell securities, swaps<br />
or such currencies in exchange for a premium. The options may be on debt securities, aggregates of debt securities, financial indexes,<br />
U.S. government securities, foreign government securities, swaps and foreign currencies. Each Portfolio will sell only covered<br />
options. Covered options are described in the SAI.<br />
TRACERS and TRAINS. Tradable Custodial Receipts or TRACERS represent an interest in a basket of investment grade corporate<br />
credits. Targeted Return Index Securities or TRAINS represent an interest in a basket of high yield securities of varying credit quality.<br />
Only the Jennison Value Portfolio may invest in TRAINS. Interests in TRACERS and TRAINS provide a cost-effective alternative to<br />
purchasing individual issues.<br />
<strong>Asset</strong> Segregation for Derivative <strong>Strategies</strong>. As open-end management investment companies registered with the Commission, each<br />
Portfolio are subject to the federal securities laws, including the Investment Company Act of 1940 Act (the 1940 Act), related rules,<br />
and various Commission and Commission staff positions. In accordance with these positions, with respect to certain kinds of<br />
derivatives, each Portfolio must “set aside” (referred to sometimes as “asset segregation”) liquid assets, or engage in other<br />
Commission- or staff-approved measures, while the derivative contracts are open. For example, with respect to forwards and futures<br />
contracts that are not contractually required to “cash-settle,” a Portfolio must cover its open positions by setting aside liquid assets<br />
equal to the contracts’ full, notional value. With respect to forwards and futures that are contractually required to “cash-settle,”<br />
however, a Portfolio is permitted to set aside liquid assets in an amount equal to such Portfolio’s daily marked-to-market (net)<br />
obligations, if any (i.e., such Portfolio’s daily net liability, if any), rather than the notional value. By setting aside assets equal to only<br />
its net obligations under cash-settled forward and futures contracts, a Portfolio will have the ability to employ leverage to a greater<br />
extent than if such Portfolio were required to segregate assets equal to the full notional value of such contracts. The Fund reserves the<br />
right to modify the asset segregation policies of each Portfolio in the future to comply with any changes in the positions articulated<br />
from time to time by the Commission and its staff.<br />
Debt Obligations. Under normal circumstances, up to 20% of a Portfolio’s total assets may be invested in debt obligations. When<br />
acquiring these types of securities for the Jennison Value Portfolio, the Subadviser will normally invest in obligations rated investment<br />
grade. Investment-grade obligations are rated in one of the top four long-term quality ratings by a major rating service (such as Baa/<br />
BBB or better by Moody’s or S&P, respectively). Obligations rated in the fourth category (Baa/BBB) have speculative characteristics.<br />
These lower-rated obligations are subject to a greater risk of loss of principal and interest. The Jennison Value Portfolio may, however,<br />
also invest up to 10% of its total assets in obligations rated below investment grade by Moody’s and S&P. Debt securities rated below<br />
investment grade are considered to be predominately speculative with respect to an issuer’s capacity to pay interest and repay<br />
principal in accordance with the terms of such obligations. Jennison may also invest in instruments that are not rated, but which it<br />
believes are of comparable quality to the instruments described above. The Jennison Growth Portfolio will not invest in debt<br />
securities rated below investment grade.<br />
The Portfolios may invest in various types of debt obligations, including, without limitation: (i) U.S. Government securities; (ii) certain<br />
debt obligations issued or guaranteed by the U.S. Government and government-related entities, including mortgage-related securities;<br />
(iii) privately-issued mortgage-related and asset-backed securities; (iv) debt obligations of U.S. corporate issuers; and (v) derivatives<br />
and synthetic instruments that have economic characteristics that are similar to these types of securities and obligations.<br />
<strong>AST</strong> JPMorgan International Equity Portfolio<br />
Investment Objective: to seek capital growth.<br />
Principal Investment Objectives:<br />
The Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in equity securities. The 80% investment<br />
requirement applies at the time the Portfolio invests its assets. Equity securities include common stocks, securities convertible into<br />
common stocks and securities having common stock characteristics or other derivative instruments whose value is based on common<br />
stocks, such as rights, warrants or options to purchase common stock, preferred stock, convertible preferred stock, convertible bonds,<br />
convertible debentures, convertible notes, depository receipts, futures contracts and swaps investments.<br />
The Portfolio seeks to meet its investment objective by normally investing primarily in a diversified portfolio of equity securities of<br />
companies located or operating in developed non-U.S. countries and emerging markets of the world. The equity securities will<br />
ordinarily be traded on a recognized foreign securities exchange or traded in a foreign over-the-counter market in the country where<br />
the issuer is principally based, but may also be traded in other countries including the United States.<br />
The Portfolio will normally allocate its investments among a variety of countries, regions and industry sectors, investing in several<br />
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