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