The Prudential Series Fund

demand repayment of the obligation at a set price within a relatively short period of time, in compliance with the rulesapplicable to
money market mutual funds.
The Portfolio may also purchase floating rate and variable rate securities. These securities pay interest at rates that change periodically
to reflect changes in market interest rates. Because these securities adjust the interest they pay, they may be beneficial when interest
rates are rising because of the additional return the Portfolio will receive, and they may be detrimental when interest rates are falling
because of the reduction in interest payments to the Portfolio.
The securities that we may purchase may change over time as new types of money market instruments are developed. We will
purchase these new instruments, however, only if their characteristics and features follow the rulesgoverning money market mutual
funds.
We may also use alternative investment strategies including derivatives to try to improve the Portfolio’s returns, to protect its assets or
for short-term cash management. There is no guarantee that these strategies will work, that the instruments necessary to implement
these strategies will be available, or that the Portfolio will not lose money.
The Portfolio may also pursue the following types of investment strategies and/or invest in the following types of securities:
■ Purchase securities on a when-issued or delayed delivery basis.
■ Repurchase agreements. The Portfolio may participate with certain other Portfolios of the Fund in a joint repurchase account
under an order obtained from the SEC.
■ Reverse repurchase agreements (the Portfolio may invest up to 10% of its net assets in these instruments).
■ Illiquid securities
The Portfolio is managed by Prudential Investment Management, Inc (PIM).
An investment in the Portfolio is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation
(FDIC) or any other government agency. Although the Portfolio seeks to preserve the value of an investment at $10 per share, it is
possible to lose money by investing in the Portfolio.
Natural Resources Portfolio
The investment objective of this Portfolio is long-term growth of capital. While we make every effort to achieve our objective, we
can’t guarantee success and, it is possible that you could lose money.
We normally invest at least 80% of the Portfolio’s investable assets in common stocks and convertible securities of natural resource
companies and in securities that are related to the market value of some natural resource (asset-indexed securities). The Portfolio will
not change this policy unless it provides 60 days prior written notice to contract owners. Natural resource companies are companies
that primarily own, explore, mine, process or otherwise develop natural resources, or supply goods and services to such companies.
Natural resources generally include precious metals, such as gold, silver and platinum, ferrous and nonferrous metals, such as iron,
aluminum and copper, strategic metals such as uranium and titanium, hydrocarbons such as coal and oil, timberland, undeveloped
real property and agricultural commodities.
We seek securities with an attractive combination of valuation versus peers, organic reserve and production growth, and competitive
unit cost structure. We focus on secular, rather than tactical considerations. In selecting securities for the Portfolio, we use a bottomup
approach based on a company’s growth potential. We supplement our fundamental investment process with quantitative analytics
designed to evaluate the Portfolio’s holdings in order to optimize portfolio construction, and to create an enhanced liquidity profile
for the Portfolio while maintaining investment strategy integrity. Generally, we consider selling a security when we believe it no
longer displays the conditions for growth, is no longer undervalued, or it fails to meet expectations. Depending on prevailing trends,
we may shift the Portfolio’s focus from one natural resource to another, however, we will not invest more than 25% of the Portfolio’s
total assets in any single natural resource industry.
The Portfolio is a non-diversified mutual fund portfolio. This means that the Portfolio may invest a relatively high percentage of its
assets in a small number of issuers. As a result, the Portfolio’s performance may be more clearly tied to the success or failure of a
smaller group of Portfolio holdings. There are additional risks associated with the Portfolio’s investment in the securities of natural
resource companies. The market value of the securities may be affected by numerous factors, including events occurring in nature,
inflationary pressures, and international politics.
When acquiring asset-indexed securities, we usually will invest in obligations rated at least BBB by Moody’s or Baa by S&P (or, if
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