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

periodically.
The Portfolio may enter into short sales. In short selling transactions, the Portfolio sells a security it does not own in anticipation of a
decline in the market value of the security. To complete the transaction, the Portfolio must borrow the security to make delivery to the
buyer. The Portfolio is obligated to replace the security borrowed by purchasing it subsequently at the market price at the time of
replacement.
The Portfolio may invest in shares of exchange-traded funds (ETFs), REITs, affiliated money market funds and other investment
companies. An ETF is a registered investment company that seeks to track the performance of a particular market index. These
indexes include not only broad-based market indexes but more specific indexes as well, including those relating to particular sectors,
markets, regions and industries. REITs are pooled investment vehicles that invest primarily in income-producing real estate or loans
related to real estate.
The Portfolio may invest in common shares or preferred shares of unaffiliated closed-end funds.
Derivatives, which are instruments that have a value based on another instrument, exchange rate or index, may be used as substitutes
for securities in which the Portfolio can invest. The Portfolio may use futures contracts, options, swaps and other derivatives as tools in
the management of the Portfolio assets. The Portfolio may use derivatives for hedging or investment purposes, including to obtain
significant amounts of long or short exposure.
Up to approximately 5% of the Portfolio’s net assets may be allocated to: (i) index futures, other futures contracts, and options
thereon to provide liquid exposure to their respective equity and fixed-income benchmark indices and (ii) cash, money market
equivalents, short-term debt instruments, money market funds, and short-term debt funds to satisfy all applicable margin
requirements for the futures contracts and to provide additional portfolio liquidity to satisfy large-scale redemptions and any variation
margin calls with respect to the futures contracts. The Portfolio may also invest in ETFs for additional exposure to relevant markets.
For cash management or temporary defensive purposes, the Portfolio may invest any portion of its total assets in cash and cash
equivalents, including affiliated money market funds, high-quality money market instruments or repurchase agreements.
The approximate target allocation of Portfolio assets across asset classes and anticipated asset allocation ranges are set forth in the
table below:
Asset Class
Approximate
Allocation
Anticipated
Investment
Ranges
U.S. Equity Securities 27% 19-35%
Foreign Equity Securities 13% 5-21%
U.S. & Foreign Debt Securities 50% 42-58%
U.S. Treasury Bills: 10% 2-18%
AST Large-Cap Value Portfolio
Investment Objective: to seek current income and long-term growth of income, as well as capital appreciation.
Principal Investment Policies:
The Portfolio has a non-fundamental policy to invest, under normal circumstances, at least 80% of the value of its net assets in
securities of large capitalization companies. Large capitalization companies are generally those that have market capitalizations, at
the time of purchase, within the market capitalization range of the Russell 1000® Value Index. The 80% requirement applies at the
time the Portfolio invests its assets. Some of these securities may be acquired in initial public offerings (IPOs). In addition to these
principal investments, the Portfolio may invest up to 20% of its total assets in foreign securities.
The assets of the Portfolio are independently managed by two subadvisers under a multi-manager structure. Pursuant to the multimanager
structure, the Investment Managers of the Portfolio determine and allocate a portion of the Portfolio’s assets to each of the
Subadvisers. The allocations will be reviewed by the Investment Managers periodically and may be altered or adjusted by the
Investment Managers without prior notice. Such adjustments will be reflected in the annual update to this prospectus.
Although each Subadviser will follow the Portfolio’s policy of investing, under normal circumstances, at least 80% of the Portfolio’s
assets in large capitalization companies, each Subadviser expects to utilize different investment strategies to achieve the Portfolio’s
objective of current income and long-term growth of income, as well as capital appreciation. The current asset allocations and
principal investment strategies for each of the Subadvisers are summarized below:
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