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

Asset-Backed Securities. The Portfolio may invest in asset-backed securities backed by assets such as credit card receivables,
automobile loans, manufactured housing loans, corporate receivables, and home equity loans in accordance with industry limits
based upon the underlying collateral. The Portfolio may invest in certain government supported asset-backed notes in reliance on noaction
relief issued by the Securities and Exchange Commission that such securities may be considered as government securities for
purposes of compliance with the diversification requirements under Rule 2a-7.
Synthetic Instruments. As may be permitted by current laws and regulations, the Portfolio may invest in certain synthetic instruments.
Such instruments generally involve the deposit of asset-backed securities in a trust arrangement and the issuance of certificates
evidencing interests in the trust. The Subadviser will review the structure of synthetic instruments to identify credit and liquidity risks
and will monitor such risks.
Demand Features. The Portfolio may purchase securities that include demand features, which allow the Portfolio to demand
repayment of a debt obligation before the obligation is due or “matures.” This means that longer-term securities can be purchased
because of the expectation that the Portfolio can demand repayment of the obligation at a set price within a relatively short period of
time, in compliance with Rule 2a-7 under the Investment Company Act of 1940, as amended.
Floating Rate and Variable Rate Securities. The Portfolio may purchase floating rate and variable rate securities. These securities pay
interest at rates that change periodically to reflect changes in market interest rates. Because these securities adjust the interest they
pay, they may be beneficial when interest rates are rising because of the additional return the Portfolio will receive, and they may be
detrimental when interest rates are falling because of the reduction in interest payments to the Portfolio.
Funding Agreements. The Portfolio may invest in funding agreements, which are contracts issued by insurance companies that
guarantee a rate of return of principal, plus some amount of interest. Funding agreements purchased by the Portfolio will typically be
short-term and will provide an adjustable rate of interest.
Foreign Securities. Foreign investments must be denominated in U.S. dollars and may be made directly in securities of foreign issuers
or in the form of American Depositary Receipts and European Depositary Receipts.
AST Neuberger Berman Mid-Cap Growth 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 the value of its assets in
common stocks of mid-capitalization companies. The 80% investment requirement applies at the time the Portfolio invests its assets.
The Portfolio seeks to reduce risk by diversifying among many companies, industries and sectors.
The Subadviser employs a disciplined investment strategy when selecting growth stocks. Using fundamental research and quantitative
analysis, the Subadviser looks for fast-growing companies with above average sales and competitive returns on equity relative to their
peers. In doing so, the Subadviser analyzes such factors as: financial condition (such as debt to equity ratio); market share and
competitive leadership of the company’s products; earnings growth relative to competitors; and market valuation in comparison to a
stock’s own historical norms and the stocks of other mid-cap companies.
The Subadviser follows a disciplined selling strategy, and may sell a stock when it fails to perform as expected, or when other
opportunities appear more attractive. As with any fund investing primarily in equity securities, the Portfolio is subject to the risk that
the value of the equity securities in the Portfolio will decline.
As a fund that invests primarily in mid-cap companies, the Portfolio’s risk and share price fluctuation can be expected to be more
than that of many funds investing primarily in large-cap companies, but less than that of many funds investing primarily in small-cap
companies. Mid-cap stocks may fluctuate more widely in price than the market as a whole, may underperform other types of stocks
when the market or the economy is not robust, or fall in price or be difficult to sell during market downturns. In addition, the
Portfolio’s growth investment program will generally involve greater risk and price fluctuation than funds that invest in more
undervalued securities. Because the prices of growth stocks tend to be based largely on future expectations, these stocks historically
have been more sensitive than value stocks to bad economic news and negative earnings surprises.
Other Investments:
Although equity securities are normally the Portfolio’s primary investments, it may invest in preferred stocks and convertible
securities, as well as the types of securities described below.
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