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

countries outside of the United States. However, the Portfolio may invest a substantial part of its assets in any one country. The
Portfolio intends to invest in companies (or governments) in the following countries or regions: the Far East including Japan, Europe
including the UK and other countries or areas that the Subadviser may select from time to time. The Portfolio may invest up to 15% of
its total assets in securities of issuers located and operating primarily in emerging market countries.
While the Portfolio may engage in transactions intended to hedge its exposure to fluctuations in foreign currencies, it does not
normally do so. To the extent the Portfolio invests in securities of issuers in developing countries, the Portfolio may be subject to even
greater levels of risk and share price fluctuation. Transaction costs are often higher in developing countries and there may be delays
in settlement of transactions.
Other Investments:
The Portfolio may invest up to 20% of its total assets in debt or preferred equity securities exchangeable for or convertible into
marketable equity securities of foreign companies. In addition, the Portfolio may regularly invest up to 20% of its total assets in highgrade
short-term debt securities, including U.S. Government obligations, investment grade corporate bonds or taxable municipal
securities, whether denominated in U.S. dollars or foreign currencies. The Portfolio also may purchase and write (sell) covered call
and put options on securities and stock indices. The Portfolio may also purchase and sell stock and interest rate futures contracts and
options on these futures contracts. The purpose of these transactions is to hedge against changes in the market value of the Portfolio’s
securities caused by changing interest rates and market conditions, and to close out or offset existing positions in options or futures
contracts. The Portfolio may from time to time make short sales “against the box.”
AST JPMorgan Strategic Opportunities Portfolio
Investment Objective: to seek to maximize return compared to the benchmark through security selection and tactical asset
allocation.
Principal Investment Policies:
The Portfolio will utilize a variety of diversifying asset classes and investment styles, including a significant allocation to alternative
investment strategies such as market neutral, 130/30, and absolute return.
The Portfolio may invest in a wide range of asset classes, including U.S. and non-U.S. equities, emerging markets equities, real estate
investment trusts (REITs) domiciled in and outside of the United States, U.S. and non-U.S. fixed income, high yield bonds,
convertible bonds, and emerging markets bonds. The allocation to these asset classes will vary depending on J.P. Morgan’s tactical
views. Market neutral strategies seek to produce a positive return regardless of the direction of the equity markets. 130/30 strategies
follow a particular index, for example the S&P 500, but allow J.P. Morgan to sell short securities that are deemed likely to decline in
value. Absolute return strategies seek to generate a return in excess of
prevailing yields on U.S. Treasuries or the London Interbank Offered Rate (LIBOR).
Within its equity allocations, the Portfolio primarily invests in the common stock and convertible securities of U.S. and foreign
companies, including companies that are located or domiciled in, or that derive significant revenues or profits from, emerging market
countries. Equity securities in which the Portfolio can invest may include common stocks, preferred stocks, convertible securities,
depositary receipts, warrants and rights to buy common stocks, and master limited partnerships. The Portfolio may invest in securities
denominated in U.S. dollars, major reserve currencies and currencies of other countries in which it can invest.
The Portfolio will invest in securities denominated in foreign currencies and may seek to enhance returns and/or manage currency
risk versus the benchmark where appropriate through managing currency exposure. Capital markets in certain countries may be less
developed and/or not easy to access. With its fixed income allocation, the Portfolio may invest in a wide range of debt securities of
issuers from the U.S. and other markets, both developed and emerging. Investments may be issued or guaranteed by a wide variety of
entities including governments and their agencies, corporations, financial institutions and supranational organizations that the
Portfolio believes have the potential to provide a high total return over time. The Portfolio may invest in inflationlinked debt
securities, including fixed and floating rate debt securities of varying maturities issued by the U.S. government, its agencies and
instrumentalities, such as Treasury Inflation Protected Securities (TIPS). The may invest in mortgage-related securities issued by
governmental entities and private issuers.
The Portfolio may invest assets in securities that are rated below investment grade (junk bonds) by Moody’s Investor Services, Inc.
(Moody’s), Standard & Poor’s Corporation (S&P), Fitch Ratings (Fitch) or the equivalent by another national rating organization, or
securities that are unrated but are deemed by J.P Morgan to be of comparable quality. Securities rated below investment grade may
include so called “distressed debt” (i.e., securities of issuers experiencing financial or operating difficulties or operating in troubled
industries that present attractive risk-reward characteristics). The Portfolio may invest in floating rate securities, whose interest rates
adjust automatically whenever a specified interest rate changes, and in variable rate securities, whose interest rates are changed
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