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

Special Situations. The Portfolio may invest in “special situations” from time to time. A “special situation” arises when, in the opinion
of the Subadviser, the securities of a particular company will be recognized and increase in value due to a specific development,
such as a technological breakthrough, management change or new product at that company. Investment in “special situations”
carries an additional risk of loss in the event that the anticipated development does not occur or does not attract the expected
attention.
Other Investments:
The Portfolio may also invest to a lesser degree in preferred stocks, convertible securities, warrants, and debt securities when the
Portfolio perceives an opportunity for capital growth from such securities. The Portfolio may invest up to 10% of its total assets in debt
securities, which may include corporate bonds and debentures and government securities.
The Portfolio may also purchase securities of foreign issuers including foreign equity and debt securities and depositary receipts . The
foreign securities may include companies located in developing countries. Foreign securities are selected primarily on a stock-bystock
basis without regard to any defined allocation among countries or geographic regions. The Portfolio may also use a variety of
currency hedging techniques, including forward currency contracts, to manage exchange rate risk with respect to investments
exposed to foreign currency fluctuations.
Index/Structured Securities. The Portfolio may invest without limit in index/structured securities, which are debt securities whose
value at maturity or interest rate is linked to currencies, interest rates, equity securities, indices, commodity prices or other financial
indicators. Such securities may be positively or negatively indexed ( i.e. , their value may increase or decrease if the reference index
or instrument appreciates). Index/structured securities may have return characteristics similar to direct investments in the underlying
instruments, but may be more volatile than the underlying instruments. The Portfolio bears the market risk of an investment in the
underlying instruments, as well as the credit risk of the issuer of the index/structured security.
Futures, Options and Other Derivative Instruments. The Portfolio may purchase and write (sell) options on securities, financial
indices, and foreign currencies, and may invest in futures contracts on securities, financial indices, and foreign currencies, options on
futures contracts, forward contracts and swaps and swap-related products. These instruments will be used primarily to hedge the
Portfolio’s positions against potential adverse movements in securities prices, foreign currency markets or interest rates. To a limited
extent, the Portfolio may also use derivative instruments for non-hedging purposes such as increasing the Portfolio’s income or
otherwise enhancing return.
AST MFS Global Equity Portfolio
Investment Objective: to seek capital growth.
Principal Investment Policies:
The Portfolio will have a non-fundamental policy to invest, under normal circumstances, at least 80% of its net assets in equity
securities. The 80% investment requirement applies at the time the Portfolio invests its assets. Equity securities represent an
ownership interest, or the right to acquire an ownership interest in a company or other issuer. Different types of equity securities
provide different voting and dividend rights and priorities in the event of bankruptcy of the issuer. Equity securities include common
stocks, preferred stocks, securities convertible into stocks, and depositary receipts for those securities.
In selecting investments for the Portfolio, the Subadviser is not constrained to any particular investment style. The Subadviser may
invest the Portfolio’s assets in the stocks of companies it believes to have above average earnings growth potential compared to other
companies (growth companies), in the stocks of companies it believes are undervalued compared to their perceived worth (value
companies), or in a combination of growth and value companies.
While the Subadviser may invest the Portfolio’s assets in companies of any size, the Subadviser generally focuses on companies with
large capitalizations.
The Subadviser may invest the Portfolio’s assets iin U.S. and foreign securities, including emerging market securities.
The Subadviser may invest a relatively large percentage of the Portfolio’s assets in securities of issuers in a single country, a small
number of countries, or a particular geographic region.
The Subadviser uses a bottom-up investment approach in buying and selling investments for the Portfolio. Investments are selected
primarily based on fundamental analysis of issuers and their potential in light of their current financial condition and industry
position, and market, economic, political, and regulatory conditions. Factors considered may include analysis of earnings, cash
flows, competitive position, and management ability. Quantitative models that systematically evaluate these and other factors may
also be considered.
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