The Prudential Series Fund
The Prudential Series Fund
The Prudential Series Fund
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guaranteeing the obligation for ultimate repayment and may not be able to assert a claim against the United States if the agency or<br />
instrumentality does not meet its commitments. <strong>The</strong> yield and market value of these securities are not guaranteed by the U.S.<br />
government or the relevant government sponsored enterprise.<br />
Yankee obligations risk. Yankee obligations are U.S. dollar-denominated debt securities of foreign corporations issued in the United<br />
States and U.S. dollar-denominated debt securities issued or guaranteed as to payment of principal and interest by governments,<br />
quasi-governmental entities, government agencies, and other governmental entities of foreign countries and supranational entities,<br />
which securities are issued in the United States. Debt securities of quasi-governmental entities are issued by entities owned by either<br />
a national, state, or equivalent government or are obligations of a political unit that is not backed by the national government’s full<br />
faith and credit and general taxing powers. Investments in the securities of foreign corporations and governments, even those<br />
denominated in U.S. dollars, involve certain risks not typically associated with investments in domestic issuers. <strong>The</strong> values of the<br />
securities of foreign corporations and governments are subject to economic and political developments in the countries and regions<br />
where the issuers operate or are domiciled, such as changes in economic or monetary policies. In addition, Yankee obligations may<br />
be less liquid than the debt obligations of U.S. issuers. In general, less information is publicly available about foreign corporations<br />
than about U.S. companies. Foreign corporations are generally not subject to the same accounting, auditing, and financial reporting<br />
standards as are U.S. companies. Some securities issued by foreign governments or their subdivisions, agencies, and instrumentalities<br />
may not be backed by the full faith and credit of such governments. Even where a security is backed by the full faith and credit of a<br />
foreign government, it may be difficult for the Portfolio to pursue its rights against such government in that country’s courts. Some<br />
foreign governments have defaulted on principal and interest payments. In addition, a Portfolio’s investments in Yankee obligations<br />
may be subject to the risk of nationalization or expropriation of a foreign corporation’s assets, imposition of currency exchange<br />
controls, or restrictions on the repatriation of non-U.S. currency, confiscatory taxation, political or financial instability and adverse<br />
diplomatic developments.<strong>The</strong>se risks are heightened in all respects with respect to Yankee obligations issued by foreign corporations<br />
and governments located in emerging markets.<br />
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