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

e allocated in accordance with the ranges set forth in the table below. Such allocations and ranges are approximate and subject to
change. The Portfolio may gain exposure to each asset class directly through investments in securities, through investments in
Underlying Funds, or through the use of derivatives and other financial instruments. The anticipated investment ranges and the
Portfolio’s actual exposure to the various asset classes referenced below will change over time, in response to changes in the
Subadvisers’ assessment of changing market, economic, financial, and political conditions.
Asset Class
Approximate
Current
Allocation
Anticipated
Investment
Ranges
Equity Investments 40-60%
Investment Grade Fixed-Income Investments 20-30%
Alternative Investments 10-30%
Cash and Other Short-Term Investments 0-20%
Principal Investments (Traditional Asset Classes). The traditional asset classes in which Portfolio assets may be invested are described
below.
Equity Investments. The Portfolio may invest in the equity securities of U.S. or foreign issuers of any size. The Portfolio also may invest
any portion of its assets in equity securities of issuers located in “emerging market” countries. The Portfolio may purchase securities in
initial public offerings. Equity securities include common stocks, preferred stocks, and securities convertible into common or
preferred stocks, and options and warrants to purchase common or preferred stocks. In selecting equity securities for the Portfolio, the
Subadvisers may seek to identify securities of companies in industries, sectors, or geographical regions that they believe are
undervalued or otherwise offer significant potential for capital appreciation, and companies that they believe offer the potential for
capital appreciation based on novel, superior, or niche products or services, operating characteristics, quality of management, an
entrepreneurial management team, their having gone public in recent years, opportunities provided by mergers, divestitures, new
management, or other factors.
Investment Grade Fixed-Income Investments. The Portfolio may invest in the debt securities of issuers located anywhere in the world
that are believed to offer the potential for attractive capital appreciation, current income, or both. The debt securities in which the
Portfolio may invest include: (i) securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities; (ii) debt
securities of domestic or foreign corporations; (iii) mortgage-backed and other asset-backed securities; (iv) obligations of international
agencies or supranational entities; (v) debt securities convertible into equity securities; (vi) inflation-indexed bonds; (vii) structured
notes, including hybrid or “indexed” securities, event-linked bonds, and loan participations or assignments; and (viii) delayed funding
loans and revolving credit facilities. The fixed-income securities in which the Portfolio may invest include securities that make
payments of: (i) interest at fixed rates or at floating or variable rates or (ii) principal or interest at fixed intervals or only at maturity or
upon the occurrence of stated events or contingencies.
Short-Term Investments. The Portfolio may invest in short-term, high quality investments, including, without limitation, commercial
paper, bankers’ acceptances, certificates of deposit, bank time deposits, and repurchase agreements. The Portfolio also may invest
without limitation in money market funds or similar pooled investments, including those managed, advised, or sponsored by the
Investment Managers or their respective affiliates.
Principal Investments (Alternative Asset Classes). The alternative asset classes in which Portfolio assets may be invested are described
below.
Emerging Markets Debt. The Portfolio may invest in fixed-income instruments of issuers that are economically tied to emerging
markets countries. Such securities may be denominated in non-U.S. currencies and the U.S. dollar. A security is economically tied to
an emerging market country if it: (i) is principally traded on the securities markets of an emerging markets country, or (ii) the issuer is
organized or principally operates in an emerging markets country, derives a majority of its income from its operations within an
emerging markets country, or has a majority of its assets in an emerging markets country.
High Yield Debt Securities. The Portfolio may invest in debt or fixed-income securities rated below “investment grade” (also referred
to as “junk bonds” or “high-yield bonds”) that are issued by U.S. or non-U.S. corporations, governments, government agencies, or
supranational organizations. Generally, lower rated securities pay higher yields that highly rated securities to compensate investors
for the higher risk.
Real Estate. The Portfolio may invest in real-estate related securities, such as equity or mortgage real estate investment trusts (REITs),
real estate operating companies, brokers, developers, and builders of residential, commercial, and industrial properties; property
management firms; finance, mortgage, and mortgage servicing firms; construction supply and equipment manufacturing companies;
and firms dependent on real estate holdings for revenues and profits, including lodging, leisure, timber, mining, and agriculture
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