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