Principal Investment Strategies:

The AST JPMorgan International Equity Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in equity securities. The Portfolio seeks to meet its investment objective by investing its total assets in a diversified portfolio of equity securities of companies located or operating in developed non-U.S. countries and emerging markets of the world. The equity securities will ordinarily be traded on a recognized foreign securities exchange or traded in a foreign over-the-counter market in the country where the issuer is principally based, but may also be traded in other countries including the United States. The Sub-advisor intends to focus on companies with an above-average potential for long-term growth and attractive relative valuations. The Sub-advisor selects companies based on five key factors: growth, valuation, management, risk, and sentiment. In addition, the Sub-advisor looks for companies with the following characteristics: (1) a distinguishable franchise on a local, regional or global basis; (2) a history of effective management demonstrated by expanding revenues and earnings growth; (3) prudent financial and accounting policies; and (4) an ability to capitalize on a changing business environment.

The Portfolio will normally allocate assets among a variety of countries, regions and industry sectors, investing in at least five countries outside of the United States. In selecting countries, the Sub-advisor considers such factors as economic growth prospects, monetary and fiscal policies, political stability, currency trends and market liquidity. The Portfolio may invest up to 40% of its total assets in any one country and up to 15% of its total assets in securities of issuers located and operating primarily in emerging market countries.

The AST William Blair International Growth Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in securities of issuers that are economically tied to countries other than the United States. Equity securities include common stocks, preferred stocks, warrants and securities convertible into or exchangeable for common or preferred stocks. The Portfolio has the flexibility to invest on a worldwide basis in companies and organizations of any size, regardless of country of organization or place of principal business activity. The Portfolio normally invests primarily in securities of issuers from at least five different countries, excluding the United States. Although the Portfolio intends to invest substantially all of its assets in issuers located outside the United States, it may at times invest in U.S. issuers and it may at times invest all of its assets in fewer than five countries or even a single country.

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The Portfolio invests primarily in companies selected for their growth potential. The Sub-advisor generally takes a “bottom up” approach to choosing investments for the Portfolio. In other words, the Sub-advisor seeks to identify individual companies with earnings growth potential that may not be recognized by the market at large, regardless of where the companies are organized or where they primarily conduct business. Although themes may emerge in the Portfolio, securities are generally selected without regard to any defined allocation among countries, geographic regions or industry sectors, or other similar selection procedure.

The AST LSV International Value Portfolio (formerly, the AST DeAM International Equity Portfolio) will invest, under normal circumstances, at least 80% of the value of its assets in equity securities. The Portfolio pursues its investment objective by primarily investing in the equity securities of foreign companies that are represented in the MSCI EAFE Index. The MSCI EAFE Index tracks stocks in Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

The Sub-advisor uses proprietary quantitative investment models to manage the Portfolio in a bottom-up security selection approach combined with overall portfolio risk management. The primary components of the investment models are: 1) indicators of fundamental undervaluation, such as high dividend yield, low price-to-cash flow ratio or low price-to-earnings ratio, 2) indicators of past negative market sentiment, such as poor past stock price performance, 3) indicators of recent momentum, such as high recent stock price performance, and 4) control of incremental risk relative to the benchmark index. All such indicators are measured relative to the overall universe of non-U.S., developed market equities. This investment strategy can be described as a “contrarian value” approach. The objective of the strategy is to outperform the unhedged U.S. Dollar total return (net of foreign dividend withholding taxes) of the MSCI EAFE Index.

The AST MFS Global Equity Portfolio invests, under normal circumstances, at least 80% of the value of its net assets in equity securities. The Portfolio will invest in the securities of issuers located in the U.S. and foreign countries (including issuers in developing countries).

The Portfolio focuses on companies that the Sub-advisor believes have favorable growth prospects and attractive valuations based on current and expected earnings or cash flow. The Portfolio generally seeks to purchase securities of companies with relatively large market capitalizations relative to the market in which they are traded. The Portfolio’s investments may include securities traded in over-the-counter markets, rather than on securities exchanges. The Sub-advisor uses a “bottom up,” as opposed to “top down,” investment style in managing the Portfolio. This means that securities are selected based upon fundamental analysis of individual companies by the Sub-advisor.

Principal Investment Strategies:

The AST Small-Cap Growth Portfolio (formerly, the AST State Street Research Small-Cap Growth Portfolio) will invest, under normal circumstances, at least 80% of the value of its assets in small-capitalization companies. For purposes of the Portfolio, small-capitalization companies are those that have market capitalizations no larger than the largest capitalized company included in the Russell 2000® Growth Index at the time of the Portfolio’s investment. The size of the companies in the Russell 2000® Growth Index and those on which the Sub-advisors intend to focus the Portfolio’s investments will change with market conditions. As of February 28, 2006, the average market capitalization of the companies in the Russell 2000® Growth Index was $1.28 billion and the median market capitalization was $646 million. The Sub-advisors use their own fundamental research, computer models and proprietary measures of growth in determining which stocks to select for the Portfolio. The Sub-advisors’ investment strategies seek to identify stocks of companies which have strong business momentum, earnings growth, and superior management teams, as well as stocks of those companies whose earnings growth potential may not be currently recognized by the market and whose stock may be considered to be underpriced using various financial measurements employed by the Sub-advisors, such as price-to-earnings ratios.

The AST DeAM Small-Cap Growth Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in small capitalization companies. The Portfolio pursues its investment objective by primarily investing in the equity securities of small-sized companies included in the Russell 2000® Growth Index. Equity securities include common stocks and securities convertible into or exchangeable for common stocks, including warrants and rights. The Sub-advisor employs an investment strategy that seeks to maintain a portfolio of equity securities which approximates the market risk of those stocks included in the Russell 2000® Growth Index, but which outperforms the Russell 2000® Growth Index through active stock selection. The Russell 2000® Growth Index is a market capitalization index that measures the performance of small-sized companies with above average growth prospects. As of February 28, 2006, the average market capitalization of the companies in the Russell 2000® Growth Index was $1.28 billion and the median market capitalization was $646 million. The size of the companies in the Russell 2000® Growth Index will change with market conditions. The targeted tracking error of this Portfolio is 4% with a standard deviation of +/- 4%. It is possible that the deviation may be higher. For purposes of this Portfolio, the strategy of attempting to correlate a stock portfolio’s market risk with that of a particular index, in this case the Russell 2000® Growth Index, while improving upon the return of the same index through active stock selection, is called a “managed alpha” strategy.

The Sub-advisor considers a number of factors in determining whether to invest in a growth stock, including earnings growth rate, analysts’ estimates of future earnings and industry-relative price multiples. Other factors are net income growth versus cash flow growth as well as earnings and price momentum. In the selection of investments, long-term capital appreciation will take precedence over short range market fluctuations. However, the Portfolio may occasionally make investments for short-term capital appreciation. The Sub-advisor generally takes a “bottom up” approach to building the Portfolio, searching for individual companies that demonstrate the best potential for significant return.

The AST Federated Aggressive Growth Portfolio pursues its investment objective by investing primarily in the stocks of small companies that are traded on national security exchanges, NASDAQ stock exchange and the over-the-counter market. Small companies will be defined as companies with market capitalizations similar to companies in the Russell 2000® Index (which had a market capitalization range of $27 million to $4.762 billion as of February 28, 2006) or the Standard & Poor’s Small Cap 600 Index (which had a market capitalization range of $60 million to $3 billion as of February 28, 2006. Such definition will be applied at the time of investment, and the Portfolio will not be required to sell a stock because the company has grown outside the market capitalization range of small capitalization stocks. Up to 25% of the Portfolio’s net assets may be invested in foreign securities, which are typically denominated in foreign currencies. Solely for purposes of complying with this policy an issuer’s security will be considered to be a foreign security if the security is denominated in a foreign currency or purchased on a securities exchange outside the United States. Certain securities not

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included in this definition of foreign securities may still be subject to risks of foreign investing that are described in this prospectus. For example, an issuer that is organized in an offshore jurisdiction but who has its principal place of business or whose securities are traded principally on a securities exchange in the United States will not be considered a foreign security for purposes of this policy but may still be subject to risks associated with foreign securities.

The Sub-advisor’s process for selecting investments is bottom-up and growth-oriented. There is an emphasis on individual stock selection rather than trying to time the highs and lows of the market or concentrating in certain industries or sectors. The Sub-advisor assesses individual companies from the perspective of a long-term investor. The Sub-advisor seeks to purchase stocks of companies that it believes: are profitable and leaders in the industry; have distinct products and services which address substantial markets; can rapidly grow annual earnings over the next three to five years; or have superior proven management and solid balance sheets.

The AST Goldman Sachs Small-Cap Value Portfolio will seek its objective, under normal circumstances, through investments primarily in equity securities of small capitalization companies that are believed to be undervalued in the marketplace. Typically, in choosing stocks, the Sub-advisor looks for companies using the Sub-advisor’s value investment philosophy. The Sub-advisor seeks to identify well-positioned businesses that have attractive returns on capital, sustainable earnings and cash flow, and strong company management focused on long-term returns to shareholders as well as attractive valuation opportunities where the intrinsic value is not reflected in the stock price.

Price and Prospects.    All successful investing should thoughtfully weigh two important attributes of a stock: price and prospects. Since most value managers tend to focus almost exclusively on price, they often underestimate the importance of prospects. The Sub-advisor believes a company’s prospective ability to generate high cash flow and returns on capital will strongly influence investment success.

Uncertainty creates opportunity.    Some stock price declines truly reflect a permanently disadvantaged business model. These stocks are the “value traps” that mire price-oriented investors. Other stock price declines merely reflect near-term market volatility. Through our proprietary research and strong valuation discipline, the Sub-advisor seeks to purchase well-positioned, cash-generating businesses run by shareholder-oriented managements at a price low enough to provide a healthy margin of safety.

Avoiding “value traps.”    The Sub-advisor believes the key to successful investing in the small cap value space is to avoid the “losers” or “value traps.” Academic studies have shown that small cap value has historically outperformed other asset classes, but with higher volatility and less liquidity. By focusing on stock selection within sectors and avoiding the “losers,” we believe we can participate in the long-term performance of small cap value with much less risk than other managers.

The Portfolio will 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 generally defines small capitalization stocks as stocks of companies with a capitalization of $4 billion or less. The Portfolio may invest up to 25% of its assets in foreign securities.

The AST Small-Cap Value Portfolio (formerly, the AST Gabelli Small-Cap Value Portfolio) will invest, under normal circumstances, at least 80% of the value of its assets in small capitalization companies. For purposes of the Portfolio, small capitalization companies are generally those that have market capitalizations, at the time of purchase, not exceeding the greater of: (i) $3 billion or (ii) the largest capitalized company included in the Russell 2000 Index during the previous 12 months based on month-end data.

The assets of the Portfolio are independently managed by four Sub-advisors under a multi-manager structure. Pursuant to the multi-manager structure, the Investment Managers of the Portfolio determine and allocate a portion of the Portfolio’s assets to each of the Sub-advisors. The allocations will be reviewed by the Investment Managers periodically, and the allocations may be altered or adjusted by the Investment Managers without prior notice. Such adjustments will be reflected in the annual update to this prospectus.

Although each Sub-advisor will follow the Portfolio’s policy of investing, under normal circumstances, at least 80% of the Portfolio’s assets in small capitalization companies, each Sub-advisor expects to utilize different investment strategies to achieve the Portfolio’s objective of long-term capital growth. The current asset allocations and principal investment strategies for each of the Sub-advisors is summarized below:

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J.P. Morgan Investment Management, Inc. (“J.P. Morgan”) , as of February 28, 2006, was responsible for managing approximately 58% of the Portfolio’s assets. This Sub-advisor follows a three-step process. First, a rigorous quantitative model is used to evaluate the prospects of each company in the investable universe and rank each company’s relative attractiveness within its economic sector based on a number of factors including valuation and improving fundamentals. Next, the results of the quantitative model are reviewed and modified based on the fundamental stock and industry insights of the sector specific research and portfolio management teams. Finally, a disciplined, systematic portfolio construction process is employed to overweight the stocks that are the most attractive and underweight those stocks that are the least attractive, based on the rankings from the first two steps, while trying to minimize uncompensated risks relative to the benchmark.

Lee Munder Investments, Ltd. (“Lee Munder”) , as of February 28, 2006, was responsible for managing approximately 15% of the Portfolio’s assets. This Sub-advisor seeks the stocks of companies whose current stock prices do not appear to adequately reflect their underlying value as measured by assets, earnings, cash flow or business franchises. The Sub-advisor’s research team seeks to identify companies that appear to be undervalued by various measures, and may be temporarily out of favor, but have good prospects for capital appreciation. In selecting investments, the Sub-advisor generally looks to the following: (1) Low price/earnings, price/book value or total capitalization/cash flow ratios relative to the company’s peers; (2) Low stock price relative to a company’s underlying asset values; (3) A sound balance sheet and other positive financial characteristics. The Sub-advisor then determines whether there is an emerging catalyst that will focus investor attention on the underlying assets of the company, such as takeover efforts, a change in management, or a plan to improve the business through restructuring or other means.

Salomon Brothers Asset Management Inc. (“SaBAM”) , as of February 28, 2006, was responsible for managing approximately 9% of the Portfolio’s assets. SaBAM emphasizes individual security selection while spreading the Fund’s investments among industries and sectors. SaBAM uses both quantitative and fundamental methods to identify stocks of smaller capitalization companies it believes have a high probability of outperforming other stocks in the same industry or sector. SaBAM uses quantitative parameters to select a universe of smaller capitalized companies that fit the Fund’s general investment criteria. In selecting individual securities from within this range, the Sub-advisor looks for “value” attributes, such as low stock price relative to earnings, book value and cash flow and high return on invested capital. SaBAM also uses quantitative methods to identify catalysts and trends that might influence the Fund’s industry or sector focus, or the Sub-advisor’s individual security selection.

Dreman Value Management LLC (“Dreman”), as of February 28, 2006, was responsible for managing approximately 18% of the Portfolio’s assets. Dreman’s investment objective is to provide a total return greater than that of the benchmark over time, to protect client capital during market downturns and to stay consistent in our low price-to-earnings ratio, contrarian value approach to investment management, while taking into consideration dividend yield. Dreman will seek to attain superior returns by using a contrarian value investment approach

Dreman believes that it can attain superior performance by adhering to an investment strategy that is disciplined and has a demonstrated record of success. Dreman’s investment strategy emphasizes stocks that offer unique investment values. The criterion used to identify such stocks include below average price-to-earnings, price-to-book, and/or price-to-cash flow ratios and above average dividend yields. Over the last 25 years, extensive studies, which date as far back as the 1930s, conducted by David Dreman and affiliates of Dreman, have led the Dreman to conclude that consistently applying disciplined value strategies yields superior long-term total returns.

The contrarian value strategy employed by Dreman has been developed and refined over a 25-year period of active investment management. The investment process starts with a quantitative screening process that identifies both undervalued and overvalued stocks. It is not difficult to construct such lists of over and under valued stocks from figures readily available in major newspapers, magazines and on-line databases. However, mere “cheapness” or “expensiveness” seldom achieves results that are consistently superior and obtained without needless risks. The quantitative screening outlined below reflects the process for identifying a universe of stocks to purchase.

The Dreman’s primary screening criteria will be to screen for low price-to-earnings ratio stocks because of its belief in their superior performance characteristics. After low price-to-earnings ratio, Dreman will then consider the price-to-book value and price-to-cash flow relationship. Dreman intends to concentrate its investments in companies whose market prices are low in relation to price-to-earnings ratio, book value and cash flow in order to buy solid assets and value, rather than paying a high price for a concept or fad. Another characteristic that Dreman will seek to identify in the securities it invests

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in is relatively low or sharply declining institutional ownership. Dreman believes that this factor indicates that such stocks are falling out of favor with Wall Street’s point of view and are becoming cheap.

Dreman believes its approach is conservative in nature and, accordingly, it will stress companies that possess strong financial positions. It intends to closely analyze debt-to-capital ratios to see if there is a manageable amount of debt on a company’s balance sheet, with a goal of identifying companies with no more than 50% to 60% of its total capital composed of debt. Dreman intends to spend considerable time looking at cash and current ratios, with a goal of determining whether potential investments have strong staying power, and can self-finance themselves should the need arise. Dreman intends to invest in strong companies and not speculate on weak stocks or potential bankruptcies, unless there are special circumstances.

The last major characteristic Dreman will seek is an above-average dividend yield. Dreman believes that high yield is a crucial indicator of investment success. An affiliate of Dreman has performed studies which demonstrates that stocks with the lowest 20 percent of price-to-earnings ratios usually yield more than twice as much as companies with the highest 20 percent. Furthermore, Dreman believes that the dividend growth rate of low price-to-earning ratio stocks tends to be much greater than average. In Dreman’s model portfolio, the importance of dividends becomes a critical factor in total return in down-market periods. It is Dreman’s experience that an above-average dividend yield gives a portfolio a strong defensive characteristic. Furthermore, Dreman has concluded that dividends not only provide most of any return in such periods, but the above-average dividend yield also provides strong protection in down markets. Dreman targets a portfolio yield of at least one-half of 1% above the S&P 500, that will increase steadily over time. An above-average dividend yield also can provide investors with a very strong hedge against future inflation. Some equity managers tend to downplay the importance of dividends and buy portfolios yielding less than the market. However, it is Dreman’s contention that approximately half of longer-term stock returns historically have been provided by dividends. In a volatile market environment, such as the current one, dividend yield can lower the portfolio’s volatility.

After having refined the portfolio candidate universe to a manageable group of promising stocks, Dreman will then apply rigorous, bottom-up fundamental analysis. All of its research will be done in-house, and final decisions will be made by David Dreman, Dreman’s Chief Investment Officer.

Dreman believes that there is a large universe of low price-to-earning ratio, price-to-cash flow ratio and price-to-book value ratio companies trading in the marketplace. Many low price-to-earning ratio companies deserve to be selling where they are, as they have serious competitive problems, are in declining industries, or are simply mismanaged. Dreman will try to avoid problematical low price-to-earning ratio stocks and concentrate on those stocks that have shown above-average earnings growth on both a five and ten-year basis. Dreman’s experience is that it has been more successful by owning profitable companies, rather than trying to discover turnarounds. The problem with turnarounds is that the investor has to be right on two calls: first, one must be able to pick the survivors; second, one must be right on the timing of purchases or else the investment may be unrewarding for a very long period. Dreman believes that it is essential to apply careful and sophisticated analytical techniques to each stock in the low price-to-earning ratio universe to identify those with fundamental strength, and though the screening process helps in the analysis there is no substitute for careful fundamental analysis. Dreman intends to cull stocks from its portfolio when companies have financial problems, structural deficiencies, management issues, lack of financial transparency, etc.

The AST DeAM Small-Cap Value Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in small capitalization companies. The Portfolio pursues its objective by primarily investing in the equity securities of small-sized companies included in the Russell 2000® Value Index. Equity securities include common stocks and securities convertible into or exchangeable for common stocks, including warrants and rights. The Sub-advisor employs an investment strategy that seeks to maintain a portfolio of equity securities which approximates the market risk of those stocks included in the Russell 2000® Value Index, but which outperforms the Russell 2000® Value Index through active stock selection. The Russell 2000® Value Index is a market capitalization index that measures the performance of small-sized companies trading at discounts to their value. As of February 28, 2006, the average market capitalization of the companies in the Russell 2000® Value Index was $1.19 billion and the median market capitalization was $637 million. The targeted tracking error of this Portfolio is 4% with a standard deviation of +/- 4%. It is possible that the deviation may be higher. For purposes of this Portfolio, the strategy of attempting to correlate a stock portfolio’s market risk with that of a particular index, in this case the Russell 2000® Value Index, while improving upon the return of the same index through active stock selection, is called a “managed alpha” strategy.

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The Sub-advisor considers a number of factors in determining whether to invest in a value stock, including earnings growth rate, analysts’ estimates of future earnings and industry-relative price multiples. Other factors are net income growth versus cash flow growth as well as earnings and price momentum. In the selection of investments, long-term capital appreciation will take precedence over short range market fluctuations. However, the Portfolio may occasionally make investments for short-term capital appreciation. The Sub-advisor generally takes a “bottom up” approach to building the Portfolio, searching for individual companies that demonstrate the best potential for significant return.

The AST Goldman Sachs Mid-Cap Growth Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in medium capitalization companies. The Fund pursues its objective by investing primarily in equity securities selected for their growth potential. Equity securities include common stocks, preferred stocks, warrants and securities convertible into or exchangeable for common or preferred stocks. For purposes of the Portfolio, medium-sized companies are those whose market capitalizations (measured at the time of investment) fall within the range of companies in the Russell Midcap® Growth Index. As of February 28, 2006, the average weighted market capitalization of the companies in the Russell Midcap® Growth Index was $8.01 billion and the median market capitalization was $4.18 billion. The Sub-advisor generally takes a “bottom up” approach to choosing investments for the Portfolio. In other words, we take a long-term approach and analyze each company as if we were going to own and operate that company indefinitely. We look for healthy, growing businesses with dominant market share, established brand name, pricing power, recurring revenue stream, free cash flow, high returns on invested capital, predictable growth, sustainable growth, long product life cycle, enduring competitive advantage, favorable demographic trends and excellent management.

The AST Neuberger Berman Mid-Cap Growth Portfolio will invest, under normal circumstances, at least 80% of its net assets in common stocks of mid-capitalization companies. For purposes of the Portfolio, a mid-capitalization company is defined as a company whose market capitalization is within the range of market capitalizations of companies in the Russell Midcap® Index. As of February 28, 2006, the average market capitalization of the companies in the Russell Midcap® Index was $8.10 billion and the median market capitalization was $4.07 billion. The Portfolio seeks to reduce risk by diversifying among many companies, industries and sectors.

The Sub-advisor employs a disciplined investment strategy when selecting growth stocks. Using fundamental research and quantitative analysis, the Sub-advisor looks for fast-growing companies with above average sales and competitive returns on equity relative to their peers. In doing so, the Sub-advisor 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 Sub-advisor follows a disciplined selling strategy and may sell a stock when it fails to perform as expected or when other opportunities appear more attractive.

The AST Neuberger Berman Mid-Cap Value Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in medium capitalization companies. Companies with equity market capitalizations that fall within the range of the Russell Midcap® Index at the time of investment are considered mid-cap companies for purposes of the Portfolio. As of February 28, 2006, the average market capitalization of the companies in the Russell Midcap® Index was $8.10 billion and the median market capitalization was $4.07 billion. Some of the Portfolio’s assets may be invested in the securities of large-cap companies as well as in small-cap companies. The Portfolio seeks to reduce risk by diversifying among many companies and industries.

Under the Portfolio’s value-oriented investment approach, the Sub-advisor looks for well-managed companies whose stock prices are undervalued and that may rise in price when other investors realize their worth. Factors that the Sub-advisor may use to identify these companies include strong fundamentals, such as a low price-to-earnings ratio, consistent cash flow, and a sound track record through all phases of the market cycle. The Sub-advisor may also look for other characteristics in a company, such as a strong position relative to competitors, a high level of stock ownership among management, or a recent sharp decline in stock price that appears to be the result of a short-term market overreaction to negative news.

The Sub-advisor generally considers selling a stock when it reaches a target price, when it fails to perform as expected, or when other opportunities appear more attractive.

The AST Mid-Cap Value Portfolio (formerly, the AST Gabelli All-Cap Value Portfolio) will generally invest at least 80% of its net assets in the equity securities of mid-cap companies. This strategy is not a fundamental investment policy and

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may be modified in response to market events or new regulatory requirements. In the event that the Portfolio intends to change its policy to invest 80% in mid-cap companies, it will provide at least 60 days notice to shareholders. For purposes of the Portfolio, mid-capitalization companies are generally those that have market capitalizations, at the time of purchase, within the range of companies included in the Russell Midcap® Value Index during the previous 12-months based on month-end data. The market capitalization range of the Russell Midcap® Value Index changes constantly, but as of February 28 , 2006, the range was from $3.95 billion to $8.19 billion.

In making stock selections, the Portfolio strives to earn a 10% real rate of return but there is no guarantee that this target return will be achieved. Although each Sub-advisor will follow the Portfolio’s policy of investing, under normal circumstances, primarily in readily marketable equity securities, each Sub-advisor expects to utilize different investment strategies to achieve the Portfolio’s objective of capital growth. The current asset allocations and principal investment strategies for the Sub-advisors is summarized below:

WEDGE Capital Management, LLP (“WEDGE”) is responsible for managing approximately 50% of the Portfolio’s assets. This Sub-advisor normally employs a traditional value style, bottom-up investment discipline that is intended to help identify stocks that are undervalued relative to their long term normalized earnings capability. WEDGE first employs two proprietary, fundamentally based screening models, using publicly available data on all eligible companies. The Fundamental Value Model identifies those stocks with the greatest potential for profit, based on projected earnings quality, dividend yields, and forward price/earnings ratios. In an effort to avoid financially unsound companies, WEDGE then employs the Financial Quality Model, which focuses on liquidity, profitability, and leverage factors. Stocks are ranked by both models for relative attractiveness, with approximately 37% of the initial universe becoming eligible for subsequent research.

Finally, WEDGE focuses on those companies that meet its value and financial parameters. WEDGE’s research analysts employ comprehensive qualitative analysis to identify stocks with unrecognized value. Areas of emphasis include independent earnings forecasts and financial statement analysis, an evaluation of free cash flow generation and return on invested capital, absolute and relative valuations, industry analysis and competitive positioning along with an in-depth assessment of company management. All potential additions to the Portfolio are reviewed and approved by the firm’s Investment Policy Committee. The decision to sell a stock is as highly disciplined as the decision to buy. Stocks are sold when fair valuation is reached, the original investment thesis has deteriorated, an upgrade opportunity develops or, with limited flexibility when warranted, the stock’s Fundamental Value Model ranking falls to a predetermined level.

EARNEST Partners, LLC (“EARNEST”) is responsible for managing approximately 50% of the Portfolio’s assets. This Sub-advisor normally employs a fundamental, bottom-up investment process. The first step in EARNEST’s investment process is to screen the relevant universe to identify stocks that are likely to outperform based on their financial characteristics and the current environment. Using an approach called Return Pattern Recognition, the Sub-advisor seeks to identify the financial and market characteristics that have been in place when an individual company has produced outstanding performance. These characteristics include valuation measures, market trends, operating trends, growth measures, profitability measures, and macroeconomics. The Sub-advisor screens thousands of companies and select for an in-depth fundamental review those exhibiting the set of characteristics that it believes indicate outperformance. The screening process allows the Sub-advisor to review thousands of companies and focus on those considered the best prospects.

Next, the approximately 150 companies identified in the screening process with superior financial and market characteristics are put through a second more rigorous review. In this step, EARNEST develops and tests an investment thesis for each company. The test generally includes conversations with the company’s management team and industry specialists, review of the company’s financial reports, analysis of industry and company-specific studies, and independent field research. The Sub-advisor seeks companies in attractive industries with developed strategies, talented and honest management teams, sufficient funding, and strong financial results. The Sub-advisor eliminates from consideration any company that does not pass an exhaustive fundamental analysis.

The final step in EARNEST’s investment process is to construct a portfolio that includes those stocks expected to have the best performance and that effectively manages the risk of meaningfully underperforming the assigned benchmark. The Sub-advisor uses a statistical approach called downside deviation to measure and then constrain the likelihood of significantly underperforming the benchmark. Using this information, the Sub-advisor selects investments that blend together to manage downside risk. The result is a client portfolio of approximately 60 stocks with high-expected excess returns and limited risk of meaningful underperformance. This Sub-advisor expects to focus on purchasing companies that

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have a market capitalization at the time of purchase between $1 and $20 billion, and expects to typically sell holdings whose market capitalizations have grown to more than twice the upper limit for purchase (i.e., whose market capitalization have grown to $40 billion).

The AST T. Rowe Price Natural Resources Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in natural resource companies. The Portfolio also may invest in non-resource companies with the potential for growth. When selecting stocks, the Sub-advisor looks for companies that have the ability to expand production, maintain superior exploration programs and production facilities, and the potential to accumulate new resources. Natural resource companies in which the Portfolio invests generally own, develop, refine, service or transport resources, including energy sources, precious metals, nonferrous metals, forest products, real estate, diversified resources and other basic commodities that can be produced and marketed profitably when both labor costs and prices are rising.

Although at least 50% of Portfolio assets will be invested in U.S. securities, up to 50% of total assets also may be invested in foreign securities. The Portfolio may sell securities for a variety of reasons, such as to secure gains, limit losses or re-deploy assets into more promising opportunities.

The AST T. Rowe Price Large-Cap Growth Portfolio (formerly, the AST AllianceBernstein Large-Cap Growth Portfolio) takes a growth approach to investment selection and normally invests at least 80% of its net assets in the common stocks of large companies. A large company is defined as one whose market cap is larger than the median market cap of companies in the Russell 1000® Growth Index, a widely used benchmark of the largest domestic growth stocks (the median market cap as of February 28, 2006, was $5.44 billion, and is subject to change). The market capitalization of the companies in the Portfolio and the Russell 1000® Growth Index changes over time; the Portfolio will not automatically sell or cease to purchase stock of a company it already owns just because the company’s market capitalization falls below this level. The Sub-advisor generally looks for companies with an above-average rate of earnings and cash flow growth and a lucrative niche in the economy that gives them the ability to sustain earnings momentum even during times of slow economic growth. As a growth investor, the Sub-advisor believes that when a company increases its earnings faster than both inflation and the overall economy, the market will eventually reward it with a higher stock price.

In pursuing its investment objective, the Portfolio’s management has the discretion to purchase some securities that do not meet its normal investment criteria, as described above, when it perceives an unusual opportunity for gain. These special situations might arise when the Portfolio’s management believes a security could increase in value for a variety of reasons, including a change in management, an extraordinary corporate event, or a temporary imbalance in the supply of or demand for the securities.

While most assets will be invested in U.S. common stocks, other securities may also be purchased, including foreign stocks, futures, and options, in keeping with the Portfolio’s objectives.

The Portfolio may sell securities for a variety of reasons, such as to secure gains, limit losses, or redeploy assets into more promising opportunities.

The AST MFS Growth Portfolio invests, under normal circumstances, at least 80% of its net assets in common stocks and related securities, such as preferred stocks, convertible securities and depositary receipts, of companies that the Sub-advisor believes offer better than average prospects for long-term growth. The Sub-advisor uses a “bottom up,” as opposed to “top down,” investment style in managing the Portfolio. This means that securities are selected based upon fundamental analysis of individual companies by the Sub-advisor.

The Portfolio may invest up to 35% of its net assets in foreign securities.

The AST Marsico Capital Growth Portfolio invests primarily in the common stocks of large companies (typically companies that have a market capitalization in the range of $4 billion or more) that are selected for their growth potential. The Portfolio will normally hold a core position of between 35 and 50 common stocks. The Portfolio may hold a limited number of additional common stocks at times when the Portfolio manager is accumulating new positions, phasing out and replacing existing positions, or responding to exceptional market conditions.

In selecting investments for the Portfolio, Marsico uses an approach that combines “top-down” macroeconomic analysis with “bottom-up” stock selection.

The “top-down” approach may take into consideration macroeconomic factors such as, without limitation, interest rates, inflation, demographics, the regulatory environment, and the global competitive landscape. In addition, Marsico may also examine other factors that may include, without limitation, the most attractive global investment opportunities,

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industry consolidation, and the sustainability of financial trends observed. As a result of the “top-down” analysis, Marsico seeks to identify sectors, industries and companies that may benefit from the overall trends Marsico has observed.

Marsico then looks for individual companies or securities with earnings growth potential that may not be recognized by the market at large. In determining whether a particular company or security may be a suitable investment, Marsico may focus on any of a number of different attributes that may include, without limitation, the company’s specific market expertise or dominance; its franchise durability and pricing power; solid fundamentals (e.g., a strong balance sheet, improving returns on equity, the ability to generate free cash flow, apparent use of conservative accounting standards, and transparent financial disclosure); strong and ethical management; commitment to shareholder interests; reasonable valuations in the context of projected growth rates; and other indications that a company or security may be an attractive investment prospect. This process is called “bottom-up” stock selection.

As part of this fundamental, “bottom-up” research, Marsico may visit with various levels of a company’s management, as well as with its customers and (as relevant) suppliers, distributors, and competitors. Marsico also may prepare detailed earnings and cash flow models of companies. These models may assist Marsico in projecting potential earnings growth and other important company financial characteristics under different scenarios. Each model is typically customized to follow a particular company and is generally intended to replicate and describe a company’s past, present and potential future performance. The models may include quantitative information and detailed narratives that reflect updated interpretations of corporate data and company and industry developments.

Marsico may reduce or sell a Fund’s investments in portfolio companies if, in the opinion of Marsico, a company’s fundamentals change substantially, its stock price appreciates excessively in relation to fundamental earnings growth prospects, the company appears not to realize its growth potential, or there are more attractive investment opportunities elsewhere.

The Portfolio’s core investments generally are comprised of established companies and securities that exhibit growth characteristics. However, the portfolio also may typically include companies with more aggressive growth characteristics, and companies undergoing significant changes: e.g., the introduction of a new product line, the appointment of a new management team or an acquisition.

The AST Goldman Sachs Concentrated Growth Portfolio will pursue its objective, under normal circumstances, by investing primarily in equity securities. Equity securities include common stocks, preferred stocks, warrants and securities convertible into or exchangeable for common or preferred stocks. Investments will be in companies that the Sub-advisor believes have potential to achieve capital appreciation over the long-term. The Portfolio seeks to achieve its investment objective by investing, under normal circumstances, in approximately 30-45 companies that are considered by the Sub-advisor to be positioned for long-term growth.

The AST DeAM Large-Cap Value Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in large capitalization companies. The Portfolio pursues its investment objective by primarily investing in the equity securities of large sized companies included in the Russell 1000® Value Index. Equity securities include common stocks and securities convertible into or exchangeable for common stocks, including warrants and rights. The Sub-advisor employs an investment strategy that seeks to maintain a portfolio of equity securities which approximates the market risk of those stocks included in the Russell 1000® Value Index, but which outperforms the Russell 1000® Value Index through active stock selection. The Russell 1000® Value Index is a market capitalization index that measures the performance of large, established companies trading at discounts to their fair value. As of February 28, 2006, the average market capitalization of the companies in the Russell 1000® Value Index was approximately $85.21 billion and the median market capitalization was approximately $4.89 billion. The size of the companies in the Russell 1000® Value Index will change with market conditions. The targeted tracking error of this Portfolio is 4% with normal a deviation of +/- 1%. It is possible that the deviation may be higher. For purposes of this Portfolio, the strategy of attempting to correlate a stock portfolio’s market risk with that of a particular index, in this case the Russell 1000® Value Index, while improving upon the return of the same index through active stock selection, is called a “managed alpha” strategy.

The Sub-advisor considers a number of factors in determining whether to invest in a value stock, including earnings growth rate, analysts’ estimates of future earnings and industry-relative price multiples. Other factors are net income growth versus cash flow growth as well as earnings and price momentum. In the selection of investments, long-term capital appreciation will take precedence over short range market fluctuations. However, the Portfolio may occasionally make investments for short-term capital appreciation. The Sub-advisor generally takes a “bottom up” approach to building the Portfolio, searching for individual companies that demonstrate the best potential for significant return.

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Principal Investment Strategies:

The AST Cohen & Steers Realty Portfolio will invest, under normal circumstances, at least 80% of its net assets in securities of real estate related issuers. Under normal circumstances, the Portfolio will invest substantially all of its assets in the equity securities of real estate companies. Such equity securities will consist of common stocks, rights or warrants to purchase common stocks, securities convertible into common stocks where the conversion feature represents, in the Sub-advisor’s view, a significant element of the securities’ value, and preferred stocks.

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For purposes of the Portfolio’s investment policies, a “real estate company” is one that derives at least 50% of its revenues from the ownership, construction, financing, management or sale of real estate or that has at least 50% of its assets in real estate. The Portfolio may invest up to 10% of its total assets in securities of foreign real estate companies. Real estate companies may include real estate investment trusts (“REITs”). REITs pool investors’ funds for investment primarily in income producing real estate or real estate related loans or interests.

The AST AllianceBernstein Managed Index 500 Portfolio (formerly known as the AST Sanford Bernstein Managed Index 500 Portfolio) will invest, under normal circumstances, at least 80% of its net assets in securities included in the Standard & Poor’s 500 Composite Stock Price Index (the “S&P 500 â ”). The Portfolio is actively managed and seeks to outperform the S&P 500® through the Sub-advisor’s stock selection resulting in different weightings of common stocks relative to the index. The S&P 500® is an index of 500 common stocks, most of which trade on the New York Stock Exchange Inc. (the “NYSE”).

In seeking to outperform the S&P 500®, the Sub-advisor starts with a portfolio of stocks representative of the holdings of the index. It then uses a set of quantitative criteria that are designed to indicate whether a particular stock will predictably perform better or worse than the S&P 500®. Based on these criteria, the Sub-advisor determines whether the Portfolio should overweight, underweight or hold a neutral position in the stock relative to the proportion of the S&P 500® that the stock represents. In addition, the Sub-advisor may determine based on the quantitative criteria that (1) certain S&P 500® stocks should not be held by the Portfolio in any amount, and (2) certain equity securities that are not included in the S&P 500® should be held by the Portfolio. The Portfolio may invest up to 15% of its total assets in equity securities not included in the S&P 500®.

While the Portfolio attempts to outperform the S&P 500®, it is not expected that any outperformance will be substantial. The Portfolio also may underperform the S&P 500® over short or extended periods.

The AST American Century Income & Growth Portfolio’s investment strategy utilizes quantitative management techniques in a two-step process that draws heavily on computer technology. In the first step, the Sub-advisor ranks stocks, primarily the 1,500 largest publicly traded companies in the United States (measured by the value of the stock), from most attractive to least attractive. This is determined by using a computer model that combines measures of at stock’s value as well as measures of its growth potential. To measure value, the Sub-advisor uses ratios of stock price to book value and stock price to cash flow, among others. To measure growth, the Sub-advisor uses the rate of growth in a company’s earnings and changes in its earnings estimates, as well as other factors.

In the second step, the Sub-advisor uses a technique called portfolio optimization. In portfolio optimization, the Sub-advisor uses a computer to build a portfolio of stocks from the ranking described above that it believes will provide the optimal balance between risk and expected return. The goal is to create a portfolio that provides better returns than its benchmark without taking on significant additional risk. In building the Portfolio, the Sub-advisor also attempts to create a dividend yield that will be greater than that of the S&P 500 Index.

The Sub-advisor generally sells stocks from the Portfolio when it believes:

·   a stock becomes too expensive relative to other stock opportunities,

·   a stock’s risk parameters outweigh its return opportunity,

·   more attractive alternatives are identified, and/or

·   specific events alter a stock’s prospects.

The AST AllianceBernstein Growth & Income Portfolio (formerly known as the AST Alliance Growth and Income Portfolio) normally will invest in common stocks (and securities convertible into common stocks).

The Sub-advisor will take a value-oriented approach, in that it will try to keep the Portfolio’s assets invested in securities that are selling at reasonable valuations in relation to their fundamental business prospects. In doing so, the Portfolio may forgo some opportunities for gains when, in the judgment of the Sub-advisor, they are too risky.

In seeking to achieve its objective, the Portfolio invests primarily in the equity securities of U.S. companies that the Sub-advisor believes are undervalued. The Sub-advisor believes that, over time, stock prices (of companies in which the Portfolio invests) will come to reflect the companies’ intrinsic economic values. The Sub-advisor uses a disciplined investment process to evaluate the companies in its extensive research universe. Through this process, the Sub-advisor seeks to identify the stocks of companies that offer the best combination of value and potential for price appreciation.

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The Sub-advisor’s analysts prepare their own earnings estimates and financial models for each company followed. The Sub-advisor employs these models to identify equity securities whose current market prices do not reflect what it considers to be their intrinsic economic value. In determining a company’s intrinsic economic value, the Sub-advisor takes into account any factors it believes bear on the ability of the company to perform in the future, including earnings growth, prospective cash flows, dividend growth and growth in book value. The Sub-advisor then ranks, at least weekly, each of the companies in its research universe in the relative order of disparity between their stock prices and their intrinsic economic values, with companies with the greatest disparities receiving the highest ranking (i.e., being considered the most undervalued).

The AST American Century Strategic Balanced Portfolio normally maintains approximately 60% of its assets in equity securities and the remainder in bonds and other fixed income securities. For the equity portion of the Portfolio, the Sub-advisor utilizes quantitative management techniques in a two-step process that draws heavily on computer technology. In the first step, the Sub-advisor ranks stocks, primarily the 1,500 largest publicly traded companies in the United States (measured by the value of their stock) from most attractive to least attractive. These rankings are determined by using a computer model that combines measures of a stock’s value as well as measures of its growth potential. To measure value, the Sub-advisor uses ratios of stock price to book value and stock price to cash flow, among others. To measure growth, the Sub-advisor uses the rate of growth in a company’s earnings and changes in its earnings estimates, as well as other factors.

In the second step, the Sub-advisor uses a technique called portfolio optimization. In portfolio optimization, the Sub-advisor uses a computer to build a portfolio of stocks from the ranking described above that it believes will provide the optimal balance between risk and expected return. The goal is to create an equity portfolio that provides better returns than the S&P 500® Index without taking on significant additional risk.

The Sub-advisor also consults the rankings described above when determining whether to sell a particular security. As a security’s ranking falls, the Sub-advisor will consider many factors in addition to the computer-generated information for the security, including, among other things, a security’s price, whether a security’s risk parameters outweigh its return opportunities, general market conditions, and any other factors deemed relevant by the Sub-advisor.

The fixed-income portion of the Portfolio is invested primarily in a diversified portfolio of high-grade government, corporate, asset-backed and similar securities payable in U.S. currency. At least 80% of the fixed-income assets will be invested in securities that are rated within the three highest categories by a nationally recognized statistical rating organization. Up to 20% of the fixed-income portion may be invested in securities rated in the fourth category, and up to 15% may be invested in securities rated in the fifth category. The rating category of a security will be determined at the time of purchase. In the event a security is subsequently downgraded, the Portfolio will not be obligated to dispose of that security, but may continue to hold the security if deemed appropriate by the portfolio managers. Under normal market conditions, the weighted average maturity for the fixed income portion of the Portfolio will be in the 3-to 10-year range.

The AST Advanced Strategies Portfolio will seek to achieve its investment objective by investing primarily in a diversified portfolio of equity and fixed-income securities. In particular, the Investment Managers will allocate the net assets of the Portfolio across different investment categories and different Sub-Advisors. PI will also directly manage a portion of the assets of the Portfolio. Certain investment categories will contain sub-categories. The investment adviser for a category or sub-category will employ a specific investment strategy for that category or sub-category.

The Investment Managers will employ a two-tiered approach to allocating Portfolio assets across the various investment categories, sub-categories, and investment advisers. First, the Investment Managers will analyze the macro-economic landscape, the capital markets, and the related implications for investment strategy. Second, the Investment Managers will draw on their in-depth understanding of the strategies used by the investment advisers to determine which advisers are expected to perform best under the prevailing macro-economic landscape.

Overall, the Advanced Strategies Portfolio will pursue a combination of traditional and non-traditional investment strategies. The expected asset allocation provides for an allotment of 50% of Portfolio assets to a combination of domestic and international equity strategies and an allotment of 50% of Portfolio assets to a combination of U.S. fixed-income, hedged international bond, real return and exchange-traded fund investment strategies. The Portfolio will use derivative instruments to gain exposure to certain commodity and real estate related indices. The Portfolio may engage in short sales to a limited extent and may invest in fixed-income securities that are rated below investment grade by the major ratings services (Ba or lower by Moody’s Investors Service, Inc., BB or lower by Standard & Poor’s Ratings Services, or, if unrated, considered to be of comparable quality, in connection with these investment strategies. Fixed-income debt obligations rated below investment grade by the major ratings services or, if unrated, considered to be of comparable quality, are commonly

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referred to as “junk bonds” and are regarded as having predominantly speculative characteristics with respect to capacity to pay principal and interest.

The AST T. Rowe Price Asset Allocation Portfolio normally invests approximately 60% of its total assets in equity securities and 40% in fixed income securities. This mix may vary over shorter time periods; the equity portion may range between 50-70% and the fixed income portion between 30-50%.

The Sub-advisor concentrates common stock investments in larger, more established companies, but the Portfolio may include small and medium-sized companies with good growth prospects. The Portfolio’s exposure to smaller companies is not expected to be substantial, and will not constitute more than 30% of the equity portion of the Portfolio. Up to 35% of the equity portion may be invested in foreign (non-U.S. dollar denominated) equity securities. When selecting particular stocks to purchase, the Sub-advisor will examine relative values and prospects among growth and value-oriented stocks, domestic and international stocks, and small-to large-cap stocks. Domestic stocks are drawn from the overall U.S. market while international equities are selected primarily from large companies in developed countries.

The fixed income portion of the Portfolio will be allocated among investment grade securities (50-100% of the fixed income portion); high yield or “junk” bonds (up to 30%); foreign (non-U.S. dollar denominated) high quality debt securities (up to 30%); and cash reserves (up to 20%). Bond investments are primarily investment grade (top four credit ratings) and are chosen from across the entire government and corporate bond markets. A significant portion of the Portfolio’s fixed income investments may be in mortgage-related (including mortgage dollar rolls and derivatives such as collateralized mortgage obligations and stripped mortgage-backed securities) and asset-backed securities. Maturities and duration of the fixed income portion of the portfolio will reflect the Sub-advisor’s outlook for interest rates.

The precise mix of equity and fixed income investments will depend on the Sub-advisor’s outlook for the markets. The Portfolio’s investments in foreign equity and debt securities are intended to provide additional diversification, and the Sub-advisor will normally have at least three different countries represented in both the foreign equity and foreign debt portions of the Portfolio.

The Portfolio may also invest in other securities, including futures and options, in keeping with its objective. Securities may be sold for a variety of reasons, such as to effect a change in asset allocation, to secure gains or limit losses, or to re-deploy assets to more promising opportunities.

The AST Global Allocation Portfolio (formerly, AST DeAM Global Allocation Portfolio) is a “fund of funds.” That means that the Portfolio invests primarily in one or more Portfolios of the Trust in accordance with its own asset allocation strategy. The other Portfolios of the Trust in which the AST Global Allocation Portfolio may invest are collectively referred to as the “Underlying Portfolios.” The Portfolio actively allocates its assets by investing in shares of a diversified group of Underlying Portfolios. The Portfolio intends its strategy of investing in combinations of Underlying Portfolios to result in investment diversification that an investor could otherwise achieve only by holding numerous investments. The Investment Managers are not, however, responsible for the day-to-day management of the Underlying Portfolios in which the Portfolio invests. The Portfolio is expected to be invested in several Underlying Portfolios at any time.

The precise allocation among the Underlying Portfolios, government securities and cash investments will depend on the Investment Managers’ outlook for the markets. Shifts among Underlying Portfolios focused on different asset classes will normally be done gradually, and the Investment Managers will not attempt to precisely “time” the market. The Portfolio’s investments in Underlying Portfolios that may invest significant portions of their assets in foreign equity and debt securities are intended to provide additional diversification. The Investment Managers expect that the Underlying Portfolios in which it invests will normally have at least three different countries represented in the foreign equity category at any given time. However, the Investment Managers do not control investments by the Underlying Portfolios; therefore, the Portfolio may occasionally be invested in Underlying Portfolios that have fewer than three countries represented in the foreign equity category at a particular time. In addition, the Investment Managers may at any time determine that they do not wish for the Portfolio to be invested in Underlying Portfolios that have any assets invested in the foreign equity category.

The Investment Managers may change the allocations of its assets among Underlying Portfolios, government securities and cash at any time if the Investment Managers believe that doing so would better enable the Portfolio to pursue its investment objective. In addition, the Portfolio intends to periodically rebalance specific allocations among Underlying Portfolios in order to maintain current target allocations. These adjustments in targets are made based on the Investment Managers’ outlook for the economy, financial markets generally, and the relative market valuation of the asset classes represented by each Underlying Portfolio. Additionally the Portfolio may deviate from its targets or customary investment

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strategies when, in the Investment Managers’ opinion, it is necessary to do so to pursue the Portfolio’s investment objective or for temporary defensive purposes. Shares of the Underlying Portfolios may be sold for a variety of reasons, such as to effect a change in asset allocation, to secure gains or limit losses, or to re-deploy assets to more promising opportunities.

The AST Aggressive Asset Allocation Portfolio , the AST Capital Growth Asset Allocation Portfolio , the AST Balanced Asset Allocation Portfolio , the AST Conservative Asset Allocation Portfolio , and the AST Preservation Asset Allocation Portfolio (collectively, the “Dynamic Asset Allocation Portfolios”) are “funds of funds.” That means that each Dynamic Asset Allocation Portfolio invests primarily in one or more Underlying Portfolios in accordance with its own asset allocation strategy. Consistent with the investment objectives and policies of the Dynamic Asset Allocation Portfolios, other funds advised by the Investment Managers or their affiliates may from time to time may be added to, or removed from, the list of Underlying Portfolios that may be used in connection with the Dynamic Asset Allocation Portfolios. Each Dynamic Asset Allocation Portfolio also may invest directly in government securities and cash equivalents for cash management purposes.

The asset allocation strategy for each Dynamic Asset Allocation Portfolio generally will be determined by the Strategic Investment Research Group of Prudential Investments LLC (PI) in consultation with Morningstar Associates, LLC (Morningstar). These strategies entail dividing the assets of each Dynamic Asset Allocation Portfolio between the equity and the debt/money market asset classes based upon certain categories within those asset classes. For example, categories within the equity asset class may be based upon stock market capitalization (e.g., large-cap, mid-cap, or small-cap), investment style (e.g., growth, core, or value), or various other factors. Categories within the debt/money market asset class may be based upon credit quality (e.g., investment grade or “high yield” debt), types of issuers (e.g., U.S. government or corporate), or various other factors. These allocations are referred to as “strategic allocations.” Generally, the strategic allocation for the more aggressive Dynamic Asset Allocation Portfolios will emphasize investments in the equity asset class while the strategic allocation for the more conservative Dynamic Asset Allocation Portfolios will emphasize investments in the debt/money market asset class. The specific combinations of Underlying Portfolios for each Dynamic Asset Allocation Portfolio will be consistent with the strategic allocation for that Portfolio. These combinations are referred to as “Underlying Portfolio allocations.”

The Dynamic Asset Allocation Portfolios currently expect that any changes to the strategic allocation and/or the Underlying Portfolio allocation and any Portfolio re-balancings will be effected within certain pre-determined ranges. Consistent with each Dynamic Asset Allocation Portfolio’s principal investment policies, the Investment Managers may, however, change the strategic allocation or the Underlying Portfolio allocation both within and beyond such pre-determined ranges at any time in their sole discretion. In addition, the Investment Managers may, at any time in their sole discretion, rebalance the Dynamic Asset Allocation Portfolio’s investments to cause such investments to match the Underlying Portfolio allocation.

Although PI and American Skandia Investment Services, Inc. serve as the Investment Managers of the Underlying Portfolios, the day-to-day investment management of the Underlying Portfolios is the responsibility of Sub-advisors. Morningstar is not involved in, or responsible for, the management of the Underlying Portfolios. The extent to which Morningstar’s recommendations are adopted and implemented is determined in the sole discretion of the Investment Managers.

Principal Investment Strategies:

The AST T. Rowe Price Global Bond Portfolio will invest, under normal circumstances, at least 80% of the value of its assets in fixed income securities. The Portfolio will invest in all types of bonds including those issued or guaranteed by the U.S. or foreign governments or their agencies and by foreign authorities, provinces and municipalities as well as investment grade corporate bonds, mortgage and asset-backed securities and high-yield bonds of U.S. and foreign issuers. The Portfolio seeks to moderate price fluctuation by actively managing its maturity structure and currency exposure. The Sub-advisor bases its investment decisions on fundamental market factors, currency trends, and credit quality. The Portfolio generally invests in countries where the combination of fixed-income returns and currency exchange rates appears attractive, or, if the currency trend is unfavorable, where the Sub-advisor believes that the currency risk can be minimized through hedging.

Although the Portfolio expects to maintain an intermediate-to-long weighted average maturity, there are no maturity restrictions on the overall portfolio or on individual securities. The Portfolio may and frequently does engage in foreign currency transactions such as forward foreign currency exchange contracts, hedging its foreign currency exposure back to the dollar or against other foreign currencies (“cross-hedging”). The Sub-advisor also attempts to reduce currency risks through diversification among foreign securities and active management of maturities and currency exposures.

The Portfolio may also invest up to 20% of its assets in the aggregate in below investment-grade, high-risk bonds (“junk bonds”) and emerging market bonds. Some emerging market bonds, such as Brady Bonds, may be denominated in U.S. dollars. In addition, the Portfolio may invest up to 30% of its assets in mortgage-related (including mortgage dollar rolls and derivatives, such as collateralized mortgage obligations and stripped mortgage securities) and asset-backed securities.

The AST High Yield Portfolio (formerly, the AST Goldman Sachs High Yield Portfolio) will invest, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at time of purchase) (‘‘Net Assets’’) in high-yield, fixed-income securities that, at the time of purchase, are non-investment grade securities. Non-investment grade securities are securities rated BB, Ba or below by a Moody’s Investors Services, Inc. or Standard & Poor’s Corporation, or, if unrated, determined by the Sub-Advisor to be of comparable quality. The Fund may invest in all types of fixed income securities, including, senior and subordinated corporate debt obligations (such as bonds, debentures, notes and commercial paper), fixed time deposits and bankers’ acceptances, obligations of non-U.S. governments or their sub-divisions, agencies and government-sponsored enterprises, international agencies or supranational entities, debt securities issued by states or local governments and their agencies, authorities and other government-sponsored enterprises, mortgage-backed and other asset-backed securities,  structured notes, including hybrid or “indexed” securities and loan participations, event-linked bonds, convertible and non-convertible corporate debt obligations, custodial receipts, municipal securities, brady bonds preferred stock, delayed funding loans and revolving credit facilities. The Portfolio may engage in short sales to a limited extent.

The assets of the Portfolio are independently managed by two Sub-advisors under a multi-manager structure. Pursuant to the multi-manager structure, the Investment Managers of the Portfolio determine and allocate a portion of the Portfolio’s assets and cash flows to each of the Sub-advisors. The allocations and cash flows will be reviewed by the Investment Managers periodically, and the allocations and cash flows may be altered or adjusted by the Investment Managers without prior notice. Such adjustments will be reflected in the annual update to this prospectus.

Although each Sub-advisor will follow the Portfolio’s policy of investing, under normal circumstances, at least 80% of the Portfolio’s net assets in high-yield, fixed income securities that, at the time of purchase, are non-investment grade securities, each Sub-advisor expects to utilize different investment strategies to achieve the Portfolio’s objective of long-term capital growth. The current asset and cash flow allocations and principal investment strategies for each of the Sub-advisors is summarized below:

Goldman Sachs Asset Management, L.P. (“GSAM”), as of March 20, 2006, was responsible for managing approximately 50% of the Portfolio’s assets. The Fund seeks a high level of current income and may also consider the potential for capital appreciation. The Portfolio invests, under normal circumstances, at least 80% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) in high-yield, fixed-income securities that, at the time of purchase, are non-investment grade securities.

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