The Prudential Series Fund
The Prudential Series Fund
The Prudential Series Fund
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HOW THE FUND IS MANAGED<br />
BOARD OF TRUSTEES<br />
<strong>The</strong> Board of Trustees oversees the actions of the Investment Manager, the Subadvisers and the Distributor and decides on general<br />
policies. <strong>The</strong> Board also oversees the <strong>Fund</strong>’s officers who conduct and supervise the daily business operations of the <strong>Fund</strong>.<br />
INVESTMENT MANAGER<br />
<strong>Prudential</strong> Investments LLC (PI), a wholly-owned subsidiary of <strong>Prudential</strong> Financial,Inc., serves as the overall investment manager for<br />
the <strong>Fund</strong>. PI is located at Gateway Center Three, 100 Mulberry Street, Newark, New Jersey 07102. PI and its predecessors have<br />
served as manager and administrator to investment companies since 1987. As of December 31, 2008, PI served as the investment<br />
manager to all of the <strong>Prudential</strong> U.S. and offshore investment companies, and as manager or administrator to closed-end investment<br />
companies, with aggregate assets of approximately $79.1 billion.<br />
<strong>The</strong> <strong>Fund</strong> uses a “manager-of-managers” structure. Under this structure, PI is authorized to select (with approval of the <strong>Fund</strong>’s<br />
independent trustees) one or more subadvisers to handle the actual day-to-day investment management of each Portfolio. PI monitors<br />
each subadviser’s performance through quantitative and qualitative analysis, and periodically reports to the <strong>Fund</strong>’s Board of Trustees<br />
as to whether each subadviser’s agreement should be renewed, terminated or modified. PI also is responsible for allocating assets<br />
among the subadvisers if a Portfolio has more than one subadviser. In those circumstances, the allocation for each subadviser can<br />
range from 0% to 100% of a Portfolio’s assets, and PI can change the allocations without board or shareholder approval. <strong>The</strong> <strong>Fund</strong><br />
will notify contract owners of any new subadviser or any material changes to any existing subadvisory agreement.<br />
A discussion regarding the basis for the Board’s approval of the <strong>Fund</strong>’s investment management and subadvisory agreements is<br />
available in the <strong>Fund</strong>’s semi-annual report (for agreements approved during the six-month period ended June 30), and in the <strong>Fund</strong>’s<br />
annual report (for agreements approved during the six-month period ended December 31).<br />
INVESTMENT MANAGEMENT FEES<br />
<strong>The</strong> following chart lists the total effective annualized investment management fees paid by each Portfolio of the <strong>Fund</strong> to PI during<br />
2008:<br />
Investment Management Fees Paid by the Portfolios<br />
Portfolio<br />
Total investment<br />
management fees<br />
as % of average<br />
net assets<br />
Conservative Balanced Portfolio 0.55%<br />
Diversified Bond Portfolio 0.40%<br />
Equity Portfolio 0.45%<br />
Flexible Managed Portfolio 0.60%<br />
Global Portfolio 0.75%<br />
Government Income Portfolio 0.40%<br />
High Yield Bond Portfolio 0.55%<br />
Jennison Portfolio 0.60%<br />
Money Market Portfolio 0.40%<br />
Natural Resources Portfolio 0.45%<br />
Small Capitalization Stock Portfolio 0.40%<br />
Stock Index Portfolio 1 0.35%<br />
Value Portfolio 0.40%<br />
1<br />
<strong>The</strong> Portfolio's contractual management fee rate is as follows: 0.35% for average net assets up to $4 billion, and 0.30% for average net assets in excess of $4 billion.<br />
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