1. Prudential AnnuitiesSM Portfolios
For Financial Professional Use Only. Not for use with the Public

2. For Financial Professional Use Only. Not for use with the Public
CLS Investment Firm, LLC
Our firm, CLS, was founded in 1989 and is a Registered Investment Advisor with the Securities and Exchange Commission. Our investment assets under management are currently in excess of $2.7 billion. We specialize in building investment portfolios for individuals just like yourself that are tailored to meet the individual investment objectives which our customers establish.
An SEC Registered Investment Advisor
Established in 1989
One of the largest privately owned third party investment managers
Professional money management using risk budgeting
Sub-advisor for Prudential 50/50 and 70/30 models
For Financial Professional Use Only. Not for use with the Public

3. For Financial Professional Use Only. Not for use with the Public
CLS Value Proposition
CLS partners with financial intermediaries to deliver risk budgeted solutions to our mutual clients.
Disciplined in our BELIEF
Innovative in our DELIVERY
Strength to our PARTNERS
For Financial Professional Use Only. Not for use with the Public

4. For Financial Professional Use Only. Not for use with the Public
Belief
RISK BUDGETING is critical to managing clients’ assets and expectations.
For Financial Professional Use Only. Not for use with the Public

5. Deliver We DELIVER innovative, risk-budgeted solutions.
Risk Changes. It’s as simple as that. The risk associated with various asset classes changes over time. That’s why CLS’ risk budgeting is a critical element in creating and maintaining client portfolios. Our portfolio management team is always watching market conditions and making adjustments to client portfolios in accordance with their financial goals, capacity to handle risk and time horizon.
For Financial Professional Use Only. Not for use with the Public

6. CLS Allocation Changes Changes in Asset Class Risk
Risk Changes. It’s as simple as that. The risk associated with various asset classes changes over time. That’s why CLS’ risk budgeting is a critical element in creating and maintaining client portfolios. Our portfolio management team is always watching market conditions and making adjustments to client portfolios in accordance with their financial goals, capacity to handle risk and time horizon. In this presentation, we’ll demonstrate the following (for the time period January 2002-January 2008):
CLS Allocation Changes
Changes in Asset Class Risk
Consistent Risk Level Associated with CLS Portfolio
CLS Performance Versus Our Benchmark
This chart illustrates the amount of relative risk typically associated with a variety of asset classes. Note the overlap areas where certain stocks assume lower risk than some bonds.
CLS Allocation Changes
Changes in Asset Class Risk
Consistent Risk Level Associated with CLS Portfolio
CLS Performance Versus Our Benchmark

7. The relative risk associated with each asset class on the CLS Risk Continuum charts is the risk of the asset class after adjustment for CLS proprietary risk indicators relative to the five-year volatility of the S&P The pie chart represents the Asset Classes that a CLS 75/25 portfolio were invested in on January 1 of the specified year. In 2002, the CLS portfolio was compared with the benchmark return of % (or CLS out-performed the benchmark by +4%).

8. Notice that from January of 2002 to January of 2003, the risk associated with the S&P 500 index (Purple box on the continuum) declined. The CLS Allocation (by asset class) did not change much from the previous year and the CLS portfolio out performed the Benchmark by +2%.

9. From January of 2003 to January of 2004, the risk of Aggressive International (Yellow Box) increased significantly, as did the opportunity for positive returns. CLS Portfolio Managers moved 11.9% of the allocation into Aggressive International. As the risk of Aggressive International increased of 2003, in order to keep the risk of the entire portfolio constant, 5.1% of the portfolio was traded into short term bonds/cash and 7.2% into high yield Bonds. CLS was able to take advantage of the opportunities Aggressive International presented without increasing the risk in the client’s account. The CLS allocation out performed the benchmark by +1.5% in 2004.

10. From 2004 to 2005, overall market risk increased
From 2004 to 2005, overall market risk increased. To keep the risk of the CLS portfolio constant, our Portfolio Managers increased the Short Term Bond/ Cash holding from 5.1% to 11.7%. The allocation included 25% in Large Value and 13.3% in International. Aggressive International continued to be favorable and accounted for 12.8% of the allocation, a 0.9% increase from The CLS Portfolio returned 8.12% in 2005, out-performing the benchmark by +4%.

11. By January, 2006 Aggressive International had again increased in risk
By January, 2006 Aggressive International had again increased in risk. CLS Portfolio Managers moved another 5.2% to Aggressive International increasing the holding to 18% of the allocation. The increased risk of the portfolio necessitated increasing Short Term Bonds/Cash from 11.7% to 21.1% of the Allocation. These trades were funded by reducing Large Value from 25% in 2005 to 15.4% in 2006, as well as reducing International and Large Cap growth by about 3% each.

12. During 2006, growth became more conservative while value became more aggressive. CLS reduced the Aggressive International allocation a it was no longer undervalued. The Short Term Bonds/Cash allocation was also reduced to keep risk constant. CLS outperformed the benchmark by over 3%.

13. In 2007, Aggressive International and Real Estate became more aggressive than the risk typically associated with Small-Cap equities. CLS increased the Aggressive International allocation to take advantage of possible outperformance while increasing the Intermediate and Long-Term Bond allocation to keep risk constant.
The difference in returns is impressive over the time period we’ve discussed. A $100,000 account invested in a CLS 75/25 portfolio on Jan 1, 2002 would return $63, by Dec 31, 2007 while keeping the risk level in the account constant. The benchmark return was $41,
In review, CLS Risk Budgeting allows our Portfolio Managers the flexibility to move to attractive asset classes in an effort to out-perform the market while keeping the risk in the allocation constant. Risk Changes. The risk in client accounts should not.

14. The CLS Portfolio Allocation and performance represents the allocation and performance of model portfolios managed identically to the actual profiles of clients in the managed accounts participants’ program with a risk budget of 83 to 87. The results assume reinvestment of interest, dividend and capital gains distributions. The returns are calculated gross of performance fees and then modified to reflect the maximum quarterly fee a client would pay (0.375%). Actual account holdings and performance for individual clients may vary. Past performance is not indicative of future results. Investment in mutual funds and variable annuities are not guaranteed and will fluctuate, so that when redeemed, may be worth more or less than their original cost.
Benchmark Return Composition: 75% S&P 500 Index / 25% Lehman 1-5 Year Government Credit Index. The Standard & Poor’s 500 Index is a market-capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. The returns presented for the S&P 500 Index are total returns, including the reinvestment of dividends each month. The Lehman 1-5 Year Government Credit Index represents a combination of the Government and Corporate Bond indices for bonds with maturities between one and five years. The returns for the index are total returns, which include reinvestment of dividends. The volatility of the indices may be materially different from the individual performance attained by a specific investor. In addition, portfolio holdings may differ significantly from the securities that comprise the indices. The indices have not been selected to represent an appropriate benchmark to compare an investor’s performance, but rather are disclosed to allow for comparison of the investor’s performance to that of certain well-known and widely recognized indices. You cannot invest directly in an index.
In February 2003, CLS’ proprietary funds became available in the Nationwide Resource program. At that time, CLS began to offer a Customized Portfolio Management program, CPM, in which client accounts hold 65%-75% CLS proprietary funds, and have the remainder invested in nonproprietary funds. CLS continues to offer the Individualized Account Management program, IAM, within the Nationwide Resource Program, consisting entirely of non-proprietary funds. CLS’ investment methodology and philosophy remain consistent in both programs. Beginning in the second quarter of 2003, CLS Nationwide Resource performance numbers are calculated with a combination of CPM and IAM performance, weighted by using a ratio based on the assets under management in each program at the end of each calendar quarter.
The definitions of asset classes noted in the CLS Allocations are as follows: Large-Cap Growth - funds that consist primarily of common stocks or related securities of larger companies with the objective of long-term growth through capital appreciation. Large-Cap Value - funds that invest in larger companies that appear to be overlooked or out of favor with the objective of capital appreciation with some income. Small/Mid-Cap Growth – funds that invest in companies with a market capitalization of between $300 million and $10 billion and reinvest their earnings into expansion, acquisitions, and/or research and development. The funds’ objective is capital appreciation. Small/Mid-Cap Value – funds that invest in companies with a market capitalization of between $300 million and $10 billion and reinvest their earnings into expansion, acquisitions, and/or research and development. The funds’ objective is capital appreciation with some income. International - seeks capital appreciation by investing heavily in foreign equity securities; US stocks may or may not be held. Aggressive International - seeks capital appreciation by investing primarily in equity securities issued in emerging markets worldwide and/or small companies worldwide. The majority of the dollars in these funds are in foreign securities. Long-Term to Intermediate Bonds – bonds that seek income by investing in a blend of government and/or corporate securities with an average maturity of generally more than 2 years. Short-Term Bonds and Cash – bonds that seek income by investing in a blend of government and/or corporate securities with an average maturity of generally less than 3 years or assets that can be converted into cash immediately. High-Yield Bonds - seek income by generally investing 80% or more of its assets in bonds rated below BBB. High-yield bond funds function neither quite like taxable bond funds nor like equity funds.
The risk associated with each asset class on the “Asset Class Risk” charts is the risk of the asset class after adjustment for CLS proprietary risk indicators relative to the five-year volatility of the S&P 500. The indices on the chart are as follows: Barra Large-Cap Growth – represents the universe of large capitalization companies in the US equity market. This index targets for inclusion 300 companies. Barra Large Cap-Value - represents the universe of large capitalization companies in the US equity market. This index targets for inclusion 300 companies. CSFB High Yield - designed to mirror the investible universe of the US-denominated high-yield debt market. Lehman Brothers Aggregate Bond - a broad representation of the investment-grade fixed income market in the US including government and corporate debt securities, mortgage- and asset-backed securities, and international US dollar denominated bonds. MSCI EAFE – free-float-adjusted market-capitalization index that is designed to measure developed market equity performance, excluding the US and Canada. Standard and Poor’s The S&P 500 Index is an unmanaged composite of 500 large-capitalization companies. Wilshire REIT – designed to provide measures of real estate securities that serve as proxies for direct real estate investing. Small/Mid Value - Russell Midcap® Value Index measures the performance of Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value index. Russell 2000® Value Index - measures the performance of the 2,000 smallest companies in the Russell 3000 Index with lower price-to-book ratios and lower forecasted growth values. MSCI Emerging Markets Index – a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. 3 Month T-Bill – a short-term debt obligation backed by the U.S. government with a maturity of 3 months. Small/Mid Growth – Russell 2000 Growth -The Russell 2000 Growth Index offers investors access to the small-cap growth segment of the U.S. equity universe. The Russell 2000 Growth is constructed to provide a comprehensive and unbiased barometer of the small-cap growth market. Based on ongoing empirical research of investment manager behavior, the methodology used to determine growth probability approximates the aggregate small-cap growth manager's opportunity set. Russell Mid Cap Growth - e Fund invests primarily in medium sized companies such as those that comprise the S&P Mid-Cap 400 Index. Typically, the Fund will hold 30 to 50 stocks issued by what are believed to be among the fastest growing corporations in America as measured by growth of revenue.
On April 10, 2003, Clarke Lanzen Skalla Investment Firm, Inc. changed its form of organization from a corporation to a limited liability company. It is now known as CLS Investment Firm, LLC. CLS Investment Firm, LLC relies on the performance data of its predecessor. Portfolio Inception Date – 12/31/01

15. For Financial Professional Use Only. Not for use with the Public
Partner
We PARTNER with financial representatives and other firms to deliver risk budgeting to our mutual clients.
Access – Portfolio Management Team
Market Updates – Weekly, Monthly, Quarterly
Risk Budgeting Video – Web based, client approved
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16. For Financial Professional Use Only. Not for use with the Public
AST CLS Growth Portfolio
Small-Cap Value and Small-Cap Growth can be up to 6% of the allocation.
For Financial Professional Use Only. Not for use with the Public

17. For Financial Professional Use Only. Not for use with the Public
AST CLS Moderate Portfolio
Small-Cap Value and Small-Cap Growth can be up to 6% of the allocation.
For Financial Professional Use Only. Not for use with the Public

18. Prudential and CLS Partnering to deliver risk budgeting.
The views expressed herein are exclusively those of CLS Investment Firm, LLC and are not meant as investment advice, and are subject to change. No part of this report may be reproduced in any manner without the written permission of CLS Investment Firm, LLC. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. There is no guarantee that any investment program or account will be profitable or will not incur loss. Investors should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Individual client accounts may vary. Client scenarios given in this presentation are given for informational purposes only and are not representative of any actual client account. This material does not constitute an offer to sell, solicitation of an offer to buy, recommendation to buy or representation as to the suitability or appropriateness of any security, financial product or instrument.
For Financial Professional Use Only. Not for use with the Public

19. For Financial Professional Use Only. Not for use with the Public
Provided courtesy of Pruco Life Insurance Company (in New York, Pruco Life Insurance Company of New Jersey) both located in Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT, as well as Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies. The views expressed are those of CLS Investment Firm, LLC. They are subject to change at any time. These views do not necessarily reflect the view of the Prudential Financial companies.
CLS Investment Firm, LLC is not affiliated with any of the Prudential Financial companies.
IFS-A Ed. 02/2008
For Financial Professional Use Only. Not for use with the Public