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

Other Investments:
Although equity securities are normally the Portfolio’s primary investment, it may invest in preferred stocks and convertible securities,
as well as the types of securities described below.
Fixed Income Securities. The Portfolio may also invest in fixed income or debt securities. The Portfolio may invest up to 15% of its
total assets, measured at the time of investment, in debt securities that are rated below investment grade or comparable unrated
securities. There is no minimum rating on the fixed income securities in which the Portfolio may invest.
Foreign Securities. The Portfolio may invest up to 10% of the value of its total assets, measured at the time of investment, in equity
and debt securities that are denominated in foreign currencies. There is no limitation on the percentage of the Portfolio’s assets that
may be invested in securities of foreign companies that are denominated in U.S. dollars. In addition, the Portfolio may enter into
foreign currency transactions, including forward foreign currency contracts and options on foreign currencies, to manage currency
risks, to facilitate transactions in foreign securities, and to repatriate dividend or interest income received in foreign currencies.
Covered Call Options. The Portfolio may try to reduce the risk of securities price changes (hedge) or generate income by writing
(selling) covered call options against securities held in its portfolio, and may purchase call options in related closing transactions. The
value of securities against which options will be written will not exceed 10% of the Portfolio’s net assets.
Real Estate Investment Trusts (REITs). The Portfolio may invest in REITs. REITs are pooled investment vehicles which invest primarily
in real estate or real estate loans.
As of January 31, 2010, LSV was responsbile for managing 65% of the Portfolio’s assets and Neuberger was responsible for managing
35% of the Portfolio’s assets.
AST Neuberger Berman Small-Cap Growth Portfolio
Investment Objective: to seek maximum growth of investors’ capital from a portfolio primarily of growth stocks of smaller
companies.
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
small capitalization companies. The 80% investment requirement applies at the time the Portfolio invests its assets.
The Portfolio pursues its investment objective, under normal market conditions, by investing primarily in the equity securities of small
sized companies with a total market capitalization within the market capitalization range of the Russell 2000® index at time of
purchase. Equity securities include common stocks and securities convertible into or exchangeable for common stocks, including
warrants and rights. The size of the companies in the Russell 2000® Index will change with market conditions.
The Subadviser employs a disciplined investment strategy when selecting 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 financial condition, 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
small cap companies.
Other Investments:
In addition to investing in common stocks, the Portfolio may also invest to a limited degree in preferred stocks and debt securities
when they are believed by the Subadviser to offer opportunities for capital growth. Other types of securities in which the Portfolio
may invest include:
Foreign Securities. The Portfolio may invest in securities of foreign issuers in the form of depositary receipts or that are denominated
in U.S. dollars. Foreign securities in which the Portfolio may invest include any type of security consistent with its investment
objective and policies. The prices of foreign securities may be more volatile than those of domestic securities.
Options, Financial Futures and Other Derivatives. The Portfolio may deal in options on securities and securities indices, which
options may be listed for trading on a national securities exchange or traded over-the-counter. Options transactions may be used to
pursue the Portfolio’s investment objective and also to hedge against currency and market risks, but are not intended for speculation.
The Portfolio may engage in financial futures transactions on commodities exchanges or boards of trade in an attempt to hedge
against market risks.
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