0001193125-13-068858.txt : 20130221
0001193125-13-068858.hdr.sgml : 20130221
20130221124525
ACCESSION NUMBER: 0001193125-13-068858
CONFORMED SUBMISSION TYPE: 424B3
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20130221
DATE AS OF CHANGE: 20130221
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP/CT
CENTRAL INDEX KEY: 0000881453
STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE CARRIERS, NEC [6399]
IRS NUMBER: 061241288
STATE OF INCORPORATION: CT
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 424B3
SEC ACT: 1933 Act
SEC FILE NUMBER: 333-177456
FILM NUMBER: 13629538
BUSINESS ADDRESS:
STREET 1: ONE CORPORATE DRIVE
CITY: SHELTON
STATE: CT
ZIP: 06484
BUSINESS PHONE: 2039261888
MAIL ADDRESS:
STREET 1: ONE CORPORATE DRIVE
CITY: SHELTON
STATE: CT
ZIP: 06484
FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN SKANDIA LIFE ASSURANCE CORP/CT
DATE OF NAME CHANGE: 19920929
424B3
1
d474072d424b3.txt
CHOICE 2000
PRUDENTIAL ANNUITIES LIFE ASSURANCE CORPORATION
PRUDENTIAL ANNUITIES LIFE ASSURANCE CORPORATION VARIABLE ACCOUNT B
ADVANCED SERIES ADVISOR PLAN/SM/ III (ASAP III)
ADVANCED SERIES APEX/SM/ II (APEX II)
ADVANCED SERIES XTRA CREDIT SIX/SM/ (XT6)
ADVANCED SERIES LIFEVEST/SM/ II (ASL II)
ADVANCED SERIES CORNERSTONE/SM/
ADVANCED SERIES ADVISORS CHOICE(R) 2000
SUPPLEMENT, DATED FEBRUARY 14, 2013,
TO PROSPECTUSES DATED MAY 1, 2012
THIS SUPPLEMENT SHOULD BE READ AND RETAINED WITH THE PROSPECTUS FOR YOUR
ANNUITY. THIS SUPPLEMENT IS INTENDED TO UPDATE CERTAIN INFORMATION IN THE
PROSPECTUS FOR THE VARIABLE ANNUITY YOU OWN AND IS NOT INTENDED TO BE A
PROSPECTUS OR OFFER FOR ANY OTHER VARIABLE ANNUITY LISTED HERE THAT YOU DO NOT
OWN. IF YOU WOULD LIKE ANOTHER COPY OF THE CURRENT PROSPECTUS, PLEASE CALL US
AT 1-888-PRU-2888.
We are issuing this supplement to reflect changes to the Advanced Series Trust
("AST") that will become effective on or about February 25, 2013, and to
describe certain other updates to your prospectus.
I. CHANGES TO THE ADVANCED SERIES TRUST
A. APPROVAL AND EFFECTIVENESS OF A NEW 12B-1 PLAN.
At a recent special meeting, shareholders of Portfolios of the Advanced Series
Trust (the "Trust") approved a Shareholder Services and Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Investment Company Act of 1940, as
amended. The Plan is applicable to all of the Portfolios of the Trust except
AST Balanced Asset Allocation Portfolio, AST Capital Growth Asset Allocation
Portfolio, AST Preservation Asset Allocation Portfolio, AST Horizon Moderate
Asset Allocation Portfolio, and AST Quantitative Modeling Portfolio.
Pursuant to the Plan, each Portfolio of the Trust covered by the Plan will
compensate Prudential Annuities Distributors ("PAD"), Inc. for shareholder
servicing and distribution expenses at the annual rate of 0.10% of the average
daily net assets of the shares of each Portfolio. The existing administrative
services fee, which was paid by each Portfolio at the same annual rate of
0.10% of the average daily net assets of the shares of each Portfolio, will be
discontinued.
The Trust's investment managers have contractually reduced their management
fee rates for all Portfolios covered by the Plan. Additionally, PAD has
contractually agreed to reduce its distribution and service fees for certain
bond Portfolios so that the effective distribution and service fee rate paid
by those Portfolios is reduced based on the average daily net assets of the
relevant Portfolio. The Plan, including the reduced management fee rates, is
anticipated to become operational on or about February 25, 2013.
Accordingly, we have restated the "Underlying Mutual Fund Portfolio Annual
Expenses" table that appear in the "Summary of Contract Fees and Charges"
chapter of your prospectus to reflect the new 12b-1 plan, as follows:
The following are the total annual expenses for each underlying mutual fund
("Portfolio"). The "Total Annual Portfolio Operating Expenses" reflect the
combination of the underlying Portfolio's investment management fee, other
expenses, any 12b-1 fees, and certain other expenses. The fees and expenses
have been restated to reflect fee and expense changes implemented following
shareholder approval of a Rule 12b-1 plan for the Portfolios, as explained in
the current prospectus for the Portfolios. Each figure is stated as a
percentage of the underlying Portfolio's average daily net assets. For certain
of the Portfolios, a portion of the management fee has been contractually
waived and/or other expenses have been contractually partially reimbursed,
which is shown in the table. The following expenses are deducted by the
underlying Portfolio before it provides Pruco Life with the daily net asset
value. The underlying Portfolio information was provided by the underlying
mutual funds and has not been independently verified by us. See the
prospectuses or statements of additional information of the underlying
Portfolios for further details. The current prospectus and statement of
additional information for the underlying Portfolios can be obtained by
calling 1-888-PRU-2888.
--------------------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES+
(as a percentage of the average net assets of the underlying Portfolios)
--------------------------------------------------------------------------------------------------------------------------------
UNDERLYING Distribution Total
PORTFOLIO and/or Broker Fees Acquired Annual Contractual Net Annual
Service Dividend and Expenses Portfolio Portfolio Fee Waiver Portfolio
Management Other Fees Expense on on Short Fees & Operating or Expense Operating
Fees Expenses (12b-1 fees) Short Sales Sales Expenses Expenses Reimbursement Expenses
--------------------------------------------------------------------------------------------------------------------------------
ADVANCED SERIES TRUST
AST Academic
Strategies Asset
Allocation 0.71% 0.03% 0.04% 0.09% 0.01% 0.66% 1.54% 0.00% 1.54%
AST Advanced
Strategies 0.81% 0.03% 0.10% 0.00% 0.00% 0.05% 0.99% 0.00% 0.99%
AST AQR Emerging
Markets Equity/ 1/ 1.09% 0.16% 0.10% 0.00% 0.00% 0.00% 1.35% 0.00% 1.35%
AST Balanced Asset
Allocation 0.15% 0.01% 0.00% 0.00% 0.00% 0.85% 1.01% 0.00% 1.01%
AST BlackRock Global
Strategies 0.97% 0.03% 0.10% 0.00% 0.00% 0.02% 1.12% 0.00% 1.12%
AST BlackRock Value 0.82% 0.02% 0.10% 0.00% 0.00% 0.00% 0.94% 0.00% 0.94%
AST Bond Portfolio
2015 0.63% 0.14% 0.10% 0.00% 0.00% 0.00% 0.87% 0.00% 0.87%
AST Bond Portfolio
2016 0.63% 0.18% 0.10% 0.00% 0.00% 0.00% 0.91% 0.00% 0.91%
AST Bond Portfolio
2017/ 2/ 0.63% 0.04% 0.10% 0.00% 0.00% 0.00% 0.77% -0.01% 0.76%
AST Bond Portfolio
2018/ 2/ 0.63% 0.03% 0.10% 0.00% 0.00% 0.00% 0.76% -0.01% 0.75%
AST Bond Portfolio
2019 0.63% 0.19% 0.10% 0.00% 0.00% 0.00% 0.92% 0.00% 0.92%
AST Bond Portfolio
2020/ 2, 3/ 0.63% 1.01% 0.10% 0.00% 0.00% 0.00% 1.74% -0.75% 0.99%
AST Bond Portfolio
2021/ 2/ 0.63% 0.03% 0.10% 0.00% 0.00% 0.00% 0.76% -0.01% 0.75%
AST Bond Portfolio
2022/ 2/ 0.63% 0.04% 0.10% 0.00% 0.00% 0.00% 0.77% -0.01% 0.76%
AST Bond Portfolio
2023/ 2, 3/ 0.63% 1.10% 0.10% 0.00% 0.00% 0.01% 1.84% -0.84% 1.00%
AST Bond Portfolio
2024 0.63% 0.26% 0.10% 0.00% 0.00% 0.88% 0.99% 0.00% 0.99%
AST Capital Growth
Asset Allocation 0.15% 0.01% 0.00% 0.00% 0.00% 0.88% 1.04% 0.00% 1.04%
AST Clearbridge
Dividend Growth/ 4/ 0.84% 0.05% 0.10% 0.00% 0.00% 0.00% 0.99% 0.00% 0.99%
AST Cohen & Steers
Realty 0.98% 0.03% 0.10% 0.00% 0.00% 0.00% 1.11% 0.00% 1.11%
AST Federated
Aggressive Growth 0.93% 0.07% 0.10% 0.00% 0.00% 0.00% 1.10% 0.00% 1.10%
AST FI Pyramis(R) Asset
Allocation /5/ 0.82% 0.11% 0.10% 0.20% 0.07% 0.01% 1.31% 0.00% 1.31%
AST First Trust
Balanced Target 0.82% 0.03% 0.10% 0.00% 0.00% 0.00% 0.95% 0.00% 0.95%
AST First Trust Capital
Appreciation Target 0.81% 0.03% 0.10% 0.00% 0.00% 0.00% 0.94% 0.00% 0.94%
AST Franklin
Templeton Founding
Funds Allocation /6/ 0.91% 0.02% 0.10% 0.00% 0.00% 0.00% 1.03% 0.00% 1.03%
AST Global Real Estate 0.99% 0.07% 0.10% 0.00% 0.00% 0.00% 1.16% 0.00% 1.16%
AST Goldman Sachs
Concentrated Growth 0.88% 0.03% 0.10% 0.00% 0.00% 0.00% 1.01% 0.00% 1.01%
AST Goldman Sachs
Large-Cap Value 0.72% 0.02% 0.10% 0.00% 0.00% 0.00% 0.84% 0.00% 0.84%
2
--------------------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES+
(as a percentage of the average net assets of the underlying Portfolios)
--------------------------------------------------------------------------------------------------------------------------------
UNDERLYING Distribution Total
PORTFOLIO and/or Broker Fees Acquired Annual Contractual Net Annual
Service Dividend and Expenses Portfolio Portfolio Fee Waiver Portfolio
Management Other Fees Expense on on Short Fees & Operating or Expense Operating
Fees Expenses (12b-1 fees) Short Sales Sales Expenses Expenses Reimbursement Expenses
--------------------------------------------------------------------------------------------------------------------------------
ADVANCED SERIES TRUST
CONTINUED
AST Goldman Sachs
Mid-Cap Growth 0.99% 0.04% 0.10% 0.00% 0.00% 0.00% 1.13% 0.00% 1.13%
AST Goldman Sachs
Small-Cap Value 0.94% 0.04% 0.10% 0.00% 0.00% 0.09% 1.12% 0.00% 1.12%
AST High Yield 0.72% 0.03% 0.10% 0.00% 0.00% 0.00% 0.85% 0.00% 0.85%
AST Horizon Moderate
Asset Allocation 0.30% 0.02% 0.00% 0.00% 0.00% 0.71% 1.03% 0.00% 1.03%
AST International
Growth 0.97% 0.05% 0.10% 0.00% 0.00% 0.00% 1.12% 0.00% 1.12%
AST International Value 0.97% 0.05% 0.10% 0.00% 0.00% 0.00% 1.12% 0.00% 1.12%
AST Investment Grade
Bond /2,3/ 0.63% 0.02% 0.10% 0.00% 0.00% 0.00% 0.75% -0.04% 0.71%
AST Jennison Large-
Cap Growth 0.87% 0.02% 0.10% 0.00% 0.00% 0.00% 0.99% 0.00% 0.99%
AST Jennison Large-
Cap Value 0.73% 0.02% 0.10% 0.00% 0.00% 0.00% 0.85% 0.00% 0.85%
AST J.P. Morgan Global
Thematic 0.92% 0.05% 0.10% 0.00% 0.00% 0.00% 1.07% 0.00% 1.07%
AST J.P. Morgan
International Equity 0.87% 0.09% 0.10% 0.00% 0.00% 0.00% 1.06% 0.00% 1.06%
AST J.P. Morgan
Strategic
Opportunities 0.97% 0.05% 0.10% 0.12% 0.01% 0.00% 1.25% 0.00% 1.25%
AST Large-Cap Value 0.72% 0.03% 0.10% 0.00% 0.00% 0.00% 0.85% 0.00% 0.85%
AST Lord Abbett Core
Fixed-Income/ 7/ 0.77% 0.02% 0.10% 0.00% 0.00% 0.00% 0.89% -0.13% 0.76%
AST Marsico Capital
Growth 0.87% 0.02% 0.10% 0.00% 0.00% 0.00% 0.99% 0.00% 0.99%
AST MFS Global Equity 0.99% 0.09% 0.10% 0.00% 0.00% 0.00% 1.18% 0.00% 1.18%
AST MFS Growth 0.87% 0.02% 0.10% 0.00% 0.00% 0.00% 0.99% 0.00% 0.99%
AST MFS Large-Cap
Value 0.83% 0.06% 0.10% 0.00% 0.00% 0.00% 0.99% 0.00% 0.99%
AST Mid-Cap Value 0.94% 0.04% 0.10% 0.00% 0.00% 0.00% 1.08% 0.00% 1.08%
AST Moderate Asset
Allocation/ 8/ 0.30% 0.02% 0.00% 0.00% 0.00% 0.71% 1.03% 0.00% 1.03%
AST Money Market 0.46% 0.02% 0.10% 0.00% 0.00% 0.00% 0.58% 0.00% 0.58%
AST Neuberger Berman
Core Bond/ 9/ 0.68% 0.03% 0.10% 0.00% 0.00% 0.00% 0.81% -0.01% 0.80%
AST Neuberger Berman
Mid-Cap Growth 0.88% 0.03% 0.10% 0.00% 0.00% 0.00% 1.01% 0.00% 1.01%
AST Neuberger
Berman/LSV Mid-
Cap Value 0.89% 0.04% 0.10% 0.00% 0.00% 0.00% 1.03% 0.00% 1.03%
AST New Discovery
Asset Allocation/ 10/ 0.84% 0.09% 0.10% 0.00% 0.00% 0.00% 1.03% 0.00% 1.03%
AST Parametric
Emerging Markets
Equity 1.07% 0.24% 0.10% 0.00% 0.00% 0.00% 1.41% 0.00% 1.41%
AST PIMCO Limited
Maturity Bond 0.62% 0.03% 0.10% 0.00% 0.00% 0.00% 0.75% 0.00% 0.75%
AST PIMCO Total
Return Bond 0.60% 0.03% 0.10% 0.00% 0.00% 0.00% 0.73% 0.00% 0.73%
AST Preservation Asset
Allocation 0.15% 0.01% 0.00% 0.00% 0.00% 0.80% 0.96% 0.00% 0.96%
3
-----------------------------------------------------------------------------------------------------------------------------
UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES+
(as a percentage of the average net assets of the underlying Portfolios)
-----------------------------------------------------------------------------------------------------------------------------
UNDERLYING Distribution Total
PORTFOLIO and/or Broker Fees Acquired Annual Contractual Net Annual
Service Dividend and Expenses Portfolio Portfolio Fee Waiver Portfolio
Management Other Fees Expense on on Short Fees & Operating or Expense Operating
Fees Expenses (12b-1 fees) Short Sales Sales Expenses Expenses Reimbursement Expenses
-----------------------------------------------------------------------------------------------------------------------------
ADVANCED SERIES TRUST
CONTINUED
AST Prudential Core
Bond/ 9/ 0.67% 0.02% 0.10% 0.00% 0.00% 0.00% 0.79% -0.03% 0.76%
AST QMA Emerging
Markets Equity/ 11/ 1.09% 0.21% 0.10% 0.00% 0.00% 0.00% 1.40% 0.00% 1.40%
AST QMA US Equity
Alpha 0.99% 0.06% 0.10% 0.29% 0.25% 0.00% 1.69% 0.00% 1.69%
AST Quantitative
Modeling 0.25% 0.30% 0.00% 0.00% 0.00% 0.87% 1.42% 0.00% 1.42%
AST Schroders Global
Tactical 0.92% 0.04% 0.10% 0.00% 0.00% 0.15% 1.21% 0.00% 1.21%
AST Schroders Multi-
Asset World
Strategies 1.07% 0.05% 0.10% 0.00% 0.00% 0.13% 1.35% 0.00% 1.35%
AST Small-Cap Growth 0.88% 0.03% 0.10% 0.00% 0.00% 0.00% 1.01% 0.00% 1.01%
AST Small-Cap Value 0.88% 0.04% 0.10% 0.00% 0.00% 0.03% 1.05% 0.00% 1.05%
AST T. Rowe Price
Asset Allocation 0.81% 0.02% 0.10% 0.00% 0.00% 0.00% 0.93% 0.00% 0.93%
AST T. Rowe Price
Equity Income 0.72% 0.01% 0.10% 0.00% 0.00% 0.00% 0.83% 0.00% 0.83%
AST T. Rowe Price
Global Bond 0.79% 0.08% 0.10% 0.00% 0.00% 0.00% 0.97% 0.00% 0.97%
AST T. Rowe Price
Large-Cap Growth 0.84% 0.02% 0.10% 0.00% 0.00% 0.00% 0.96% 0.00% 0.96%
AST T. Rowe Price
Natural Resources 0.88% 0.04% 0.10% 0.00% 0.00% 0.00% 1.02% 0.00% 1.02%
AST Wellington
Management Hedged
Equity 0.98% 0.06% 0.10% 0.00% 0.00% 0.03% 1.17% 0.00% 1.17%
AST Western Asset
Core Plus Bond 0.67% 0.03% 0.10% 0.00% 0.00% 0.00% 0.80% 0.00% 0.80%
AST Western Asset
Emerging Markets
Debt/ 12/ 0.83% 0.11% 0.10% 0.00% 0.00% 0.00% 1.04% 0.05% 0.99%
+ Expense information in the Underlying Mutual Fund Portfolio Annual Expenses
Table has been restated to reflect current fees.
1 The AST AQR Emerging Markets Equity Portfolio will commence operations on
February 25, 2013. Estimated "Other Expenses" based in part on assumed
average daily net assets of approximately $300 million for the Portfolio
for the fiscal period ending December 31, 2013.
2 The Portfolio's distributor, Prudential Annuities Distributors, Inc.
("PAD"), has contractually agreed to reduce its distribution and service
fees so that the effective distribution and service fee rate paid by the
Portfolio is reduced based on the average daily net assets of the Portfolio
as follows: 0.08% over $300 million in daily net assets up to and including
$500 million in average daily net assets; 0.07% over $500 million in daily
net assets up to an including $750 million in average daily net assets; and
0.06% over $750 million in daily net assets. The contractual waiver does
not include an expiration or termination date as it is contractually
guaranteed by PAD on a permanent basis, and the Investment Managers and PAD
cannot terminate or otherwise modify the waiver.
3 Prudential Investments LLC ("PI") and AST Investment Services, Inc. ("AST")
have contractually agreed to waive a portion of their investment management
fees and/or reimburse certain expenses for the Portfolio so that the
Portfolio's investment management fees plus other expenses (exclusive in
all cases of taxes, interest, brokerage commissions, acquired portfolio
fees and expenses and extraordinary expenses) do not exceed 0.99% of the
Portfolio's average daily net assets through June 30, 2015. This
arrangement may not be terminated or modified prior to June 30, 2015, and
may be discontinued or modified thereafter. The decision on whether to
renew, modify or discontinue the arrangement after June 30, 2015 will be
subject to review by the Manager and the Portfolio's Board of Trustees.
4 The AST Clearbridge Dividend Growth Portfolio will commence operations on
February 25, 2013. Estimated "Other Expenses" based in part on assumed
average daily net assets of approximately $400 million for the Portfolio
for the fiscal period ending December 31, 2013.
5 Pyramis is a registered service mark of FMR LLC. Used under license.
6 Prudential Investments LLC ("PI") and AST Investment Services, Inc. ("AST")
have contractually agreed to waive a portion of their investment management
fees and/or reimburse certain expenses so that the investment management
fees plus other expenses (exclusive in all cases of taxes, short sale
interest and dividend expenses, brokerage commissions, underlying portfolio
fees and expenses, and extraordinary expenses) for the Portfolio do not
exceed 1.10% of the average daily net assets of the Portfolio through
June 30, 2015. This expense limitation may not be terminated or modified
prior to June 30, 2015, but may be discontinued or modified thereafter. The
decision on whether to renew, terminate or modify this waiver after
June 30, 2015 will be subject to review by the Manager and the Board of
Trustees of the Trust.
4
7 Prudential Investments LLC ("PI") and AST Investment Services, Inc. ("AST")
have contractually agreed to waive a portion of their investment management
fee, so that the effective management fee rate paid by the Portfolio is as
follows: 0.70% to $500 million of average daily net assets; 0.675% over
$500 million in average daily net assets up to and including $1 billion in
average daily net assets; and 0.65% over $1 billion in average daily net
assets. This arrangement may not be terminated or modified prior to
June 30, 2015, and may be discontinued or modified thereafter. The decision
on whether to renew, modify or discontinue the arrangement after June 30,
2015 will be subject to review by the Investment Managers and the
Portfolio's Board of Trustees.
8 If approved by shareholders, the Portfolio will be restructured on or about
April 29, 2013. As restructured, the Portfolio will no longer be a
fund-of-funds and will be renamed the AST RCM World Trends Portfolio. Based
on assets as of December 31, 2012, as restructured, the Portfolio would
have a management fee of 0.92%, other expenses of 0.14%, acquired portfolio
fees and expenses of 0.00%, total annual operating expenses before
contractual fee waiver of 1.06%, a contractual fee waiver of 0.07% through
at least June 30, 2014, and net annual operating expenses after fee waiver
of 0.99%.
9 Prudential Investments LLC ("PI") and AST Investment Services, Inc. ("AST")
have contractually agreed to waive a portion of their investment management
fees so that the Portfolio's investment management fee would equal 0.70% of
the Portfolio's first $500 million of average daily net assets, 0.675% of
the Portfolio's average daily net assets between $500 million and $1
billion, and 0.65% of the Portfolio's average daily net assets in excess of
$1 billion through June 30, 2015. This contractual investment management
fee waiver may not be terminated or modified prior to June 30, 2015, but
may be discontinued or modified thereafter. The decision on whether to
renew, modify, or discontinue this expense limitation after June 30, 2015
will be subject to review by the Manager and the Board of Trustees of the
Portfolio.
10 Prudential Investments LLC ("PI") and AST Investment Services, Inc. ("AST")
have contractually agreed to waive a portion of their investment management
fees and/or reimburse certain expenses, so that the investment management
fees plus other expenses (exclusive in all cases of taxes, short sale
interest and dividend expenses, brokerage commissions, acquired portfolio
fees and expenses, and extraordinary expenses) for the Portfolio do not
exceed 1.08% of its average daily net assets through June 30, 2015. This
expense limitation may not be terminated or modified prior to June 30,
2015, and may be discontinued or modified thereafter. The decision on
whether to renew, modify or discontinue the expense limitation after
June 30, 2015 will be subject to review by the Investment Managers and the
Portfolio's Board of Trustees.
11 The AST QMA Emerging Markets Equity Portfolio will commence operations on
February 25, 2013. Estimated "Other Expenses" based in part on assumed
average daily net assets of approximately $300 million for the Portfolio
for the fiscal period ending December 31, 2013.
12 Prudential Investments LLC ("PI") and AST Investment Services, Inc. ("AST")
have contractually agreed to waive a portion of their investment management
fee so that the Portfolio's investment management fee would equal 0.80% of
the Portfolio's average daily net assets through June 30, 2015. This
contractual investment management fee waiver may not be terminated or
modified prior to June 30, 2015, but may be discontinued or modified
thereafter. The decision on whether to renew, modify, or discontinue this
expense limitation after June 30, 2015 will be subject to review by the
Manager and the Board of Trustees of the Trust.
B. OTHER PORTFOLIO CHANGES AND ADDITIONS.
i. All references in your annuity prospectus to the "JPMorgan International
Equity Portfolio" are replaced with "J.P. Morgan International Equity
Portfolio;" and all references in your annuity prospectus to "Barclays Capital
U.S. Aggregate Bond Index" are replaced with "Barclays U.S. Aggregate Bond
Index."
ii. To the list of available variable investment options that appear on the
backside of the first page of your prospectus, we add the following new
available investment options:
AST AQR Emerging Markets Equity Portfolio
AST Clearbridge Dividend Growth Portfolio
AST QMA Emerging Markets Equity Portfolio
iii. In the table of Underlying Mutual Fund Portfolio Annual Expenses found in
the section titled, "Summary of Contract Fees and Charges," we add the fees
for the AST AQR Emerging Markets Equity Portfolio, the AST Clearbridge
Dividend Growth Portfolio, and the AST QMA Emerging Markets Equity Portfolio
as appears in the table above.
iv. In the Investment Objectives/Policies table found in the section titled,
"Investment Options," we add summary descriptions for the AST AQR Emerging
Markets Equity Portfolio, the AST Clearbridge Dividend Growth Portfolio, and
the AST QMA Emerging Markets Equity Portfolio as follows:
STYLE/ INVESTMENT OBJECTIVES/POLICIES PORTFOLIO
TYPE ADVISOR/
SUBADVISOR
-----------------------------------------------------------------------
AST FUNDS
-----------------------------------------------------------------------
INTERNATIONAL AST AQR EMERGING MARKETS EQUITY AQR Capital
EQUITY PORTFOLIO: seeks long-term capital Management LLC
appreciation. The Portfolio seeks to
achieve its investment objective by
both overweighting and
underweighting securities,
countries, and currencies relative
to the MSCI Emerging Market Index,
using proprietary quantitative
return forecasting models and
systematic risk-control methods
developed by the subadvisor. Under
normal circumstances, the Portfolio
will invest at least 80% of its
assets in equity securities of
issuers: (i) located in emerging
market countries or (ii) included as
emerging market issuers in one or
more broad-based market indices. The
subadvisor intends to make use of
certain derivative instruments in
order to implement its investment
strategy.
-----------------------------------------------------------------------
5
STYLE/ INVESTMENT OBJECTIVES/POLICIES PORTFOLIO
TYPE ADVISOR/
SUBADVISOR
-------------------------------------------------------------------------
LARGE CAP AST CLEARBRIDGE DIVIDEND GROWTH ClearBridge
PORTFOLIO: seeks income, capital Investments, LLC
preservation, and capital
appreciation. Under normal
circumstances, at least 80% of the
Portfolio's assets will be invested
in equity or equity-related
securities, which the subadvisor
believes have the ability to
increase dividends over the longer
term. The subadvisor will manage the
Portfolio to provide exposure to
companies that either pay an
existing dividend or have the
potential to pay and/or
significantly grow their dividends.
To do so, the subadvisor will
conduct fundamental research to
screen for companies that have
attractive dividend yields, a
history and potential for positive
dividend growth, strong balance
sheets, and reasonable valuations.
-------------------------------------------------------------------------
INTERNATIONAL AST QMA EMERGING MARKETS EQUITY Quantitative
EQUITY PORTFOLIO: seeks long-term capital Management
appreciation. The Portfolio seeks to Associates, LLC
achieve its investment objective
through investment in equity and
equity-related securities of
emerging market companies. Under
normal circumstances, the Portfolio
will invest at least 80% of its
assets in equity and equity-related
securities of issuers: (i) located
in emerging market countries or (ii)
included as emerging market issuers
in one or more broad-based market
indices. The strategy used by the
subadvisor is a quantitatively
driven, bottom up investment process
which utilizes an adaptive model
that evaluates stocks differently
based on their growth expectations.
-------------------------------------------------------------------------
v. Also in the section titled, "Investment Options," we add the AST
Clearbridge Dividend Growth Portfolio to the Group II list of available
Investment Options.
II. OTHER UPDATES
THE FOLLOWING DISCLOSURE UPDATE IS APPLICABLE TO ADVISORS CHOICE 2000
ANNUITIES ONLY.
REVISED DISCLOSURE REGARDING ADVISORY FEES. We do not allow third party
investment advisors to liquidate advisory fees from Annuities with certain
optional benefits. To clarify this and other aspects of third party investment
advisor arrangements, we modify the subsection, "May I Authorize My Third
Party Investment Advisor to Manage My Account?" as follows:
MAY I AUTHORIZE MY THIRD PARTY INVESTMENT ADVISOR TO MANAGE MY ACCOUNT?
Yes. You may engage your own investment advisor to manage your account. These
investment advisors may be firms or persons who also are appointed by us, or
whose affiliated broker-dealers are appointed by us, as authorized sellers of
the Annuity. EVEN IF THIS IS THE CASE, HOWEVER, PLEASE NOTE THAT THE
INVESTMENT ADVISOR YOU ENGAGE TO PROVIDE ADVICE AND/OR MAKE TRANSFERS FOR YOU,
IS NOT ACTING ON OUR BEHALF, BUT RATHER IS ACTING ON YOUR BEHALF. To be
eligible to take any action with respect to your Annuity, an investment
advisor must meet our standards. These standards include, but are not limited
to, restricting the amount of the advisor's fee that the advisor can deduct
from your account to a specified percentage of your Account Value (this fee
cap may change periodically at our discretion). In general, we reserve the
right to change these standards at any time. Although we impose these
standards, you bear the responsibility for choosing a suitable investment
advisor.
We do not offer advice about how to allocate your Account Value under any
circumstance. As such, we are not responsible for any recommendations such
investment advisors make, any investment models or asset allocation programs
they choose to follow or any specific transfers they make on your behalf.
Moreover, if you participate in an optional living benefit that transfers
Account Value under a pre-determined mathematical formula, you and your
investment advisor should realize that such transfers will occur as dictated
solely by the formula, and may not be in accord with the investment program
being pursued by your investment advisor. As one possible example, prompted by
a decline in the value of your chosen Sub-accounts, the formula might direct a
transfer to an AST bond portfolio - even though your advisory's program might
call for an increased investment in equity Sub-accounts in that scenario.
WE ARE NOT A PARTY TO THE AGREEMENT YOU HAVE WITH YOUR INVESTMENT ADVISOR AND
DO NOT VERIFY THAT AMOUNTS WITHDRAWN FROM YOUR ANNUITY, INCLUDING AMOUNTS
WITHDRAWN TO PAY FOR THE INVESTMENT ADVISOR'S FEE, ARE WITHIN THE TERMS OF
YOUR AGREEMENT WITH YOUR INVESTMENT ADVISOR. You will, however, receive
confirmations of transactions that affect your Annuity that among other
things, reflect advisory fees deducted from your Account Value. It is your
responsibility to arrange for the payment of the advisory fee charged by your
investment advisor. Similarly, it is your responsibility to understand the
advisory services provided by your investment advisor and the advisory fees
charged for those services.
6
Any fee that is charged by your investment advisor is in addition to the fees
and expenses that apply under your Annuity. If you authorize your investment
advisor to withdraw amounts from your Annuity to pay for the investment
advisor's fee, as with any other withdrawal from your Annuity, you may incur
adverse tax consequences, and/or a Market Value Adjustment. Withdrawals to pay
your investment advisor (to the extent permitted) generally will also reduce
the level of various living and death benefit guarantees provided (e.g. the
withdrawals will reduce proportionately the Annuity's guaranteed minimum death
benefit.)
Please note that the investment restrictions for certain optional living and
death benefits, and/or the investment in certain asset allocation
sub-accounts, may limit or preclude the investment advisory's ability to
deduct advisory fees from your Annuity. For example, if you have elected any
Highest Daily Lifetime benefit, we will not allow your investment advisor to
deduct fees from your Annuity (although you may pay your advisor in some other
manner).
We treat partial withdrawals to pay advisory fees as taxable distributions
unless your Annuity is being used in conjunction with a "qualified" retirement
plan (plans meeting the requirements of Sections 401, 403 or 408 of the code).
However, if your Annuity has an optional benefit that is ineligible for
advisory fee deduction, and if you take partial withdrawals from such Annuity
to pay advisory fees, such partial withdrawals will be considered taxable
distributions for all contracts, including the "qualified" retirement plans
enumerated above.
We or an affiliate of ours may provide administrative support to licensed,
registered Financial Professionals or investment advisors who you authorize to
make financial transactions on your behalf. We may require Financial
Professionals or investment advisors, who are authorized by multiple contract
owners to make financial transactions, to enter into an administrative
agreement with Prudential Annuities as a condition of our accepting
transactions on your behalf. The administrative agreement may impose
limitations on the Financial Professional's or investment advisor's ability to
request financial transactions on your behalf. These limitations are intended
to minimize the detrimental impact of a Financial Professional who is in a
position to transfer large amounts of money for multiple clients in a
particular Portfolio or type of portfolio or to comply with specific
restrictions or limitations imposed by a Portfolio(s) on Prudential Annuities.
PLEASE NOTE: Annuities where your Financial Professional or investment advisor
has the authority to forward instruction on financial transactions are also
subject to the restrictions on transfers between investment options that are
discussed in the section entitled "ARE THERE RESTRICTIONS OR CHARGES ON
TRANSFERS BETWEEN INVESTMENT OPTIONS?." Since transfer activity directed by a
Financial Professional or third party investment adviser may result in
unfavorable consequences to all contract owners invested in the affected
options, we reserve the right to limit the investment options available to a
particular Owner where such authority as described above has been given to a
Financial Professional or investment advisor or impose other transfer
restrictions we deem necessary. The administrative agreement may limit the
available investment options, require advance notice of large transactions, or
impose other trading limitations on your Financial Professional. Your
Financial Professional will be informed of all such restrictions on an ongoing
basis. We may also require that your Financial Professional transmit all
financial transactions using the electronic trading functionality available
through our Internet website (www.prudentialannuities.com).
Limitations that we may impose on your Financial Professional or investment
advisor under the terms of the administrative agreement do not apply to
financial transactions requested by an owner on their own behalf, except as
otherwise described in this prospectus.
THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE.
7