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