The Prudential Series Fund
SP International Value Portfolio1
As of 12/31/2009
INVESTMENT OBJECTIVEStylebox
Seeks long-term capital appreciation primarily from investments in the equities of established companies in developed countries outside the United States. There can be no assurance that the investment objective will be achieved.

INVESTMENT DISCIPLINE

LSV’s investment model ranks a universe of stocks based on a variety of factors they believe to be predictive of future stock returns. The portfolio is built country neutral relative to the benchmark, effectively buying the highest ranked stocks in each country. LSV then overlays strict risk controls that limit the over- or under-exposure of the portfolio to industry and sector concentrations. LSV also limits exposures in individual securities to ensure the portfolios are broadly diversified, further controlling risk.

Thornburg uses a bottom-up investment process that seeks to identify promising companies selling at a discount to intrinsic value. The portfolio is focused yet maintains diversification across three categories of value -- Basic Value, Consistent Earners and Emerging Franchises -- and will invest opportunistically in high quality Emerging Markets securities.

Performance (As of 12/31/2009)
Performance Chart
Performance Graph for Class A Shares
 YTD1-YEAR3-YEAR5-YEAR10-YEARSINCE INCEPTION
  PORTFOLIO32.3532.35-4.385.13N/A1.60
  MSCI EAFE INDEX (GD)32.4632.46-5.574.021.583.08
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S UNITS, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PAST PERFORMANCE DATA QUOTED. PERFORMANCE INFORMATION AS OF THE MOST RECENT MONTH-END IS AVAILABLE AT WWW.PRUDENTIAL.COM.

The rates of return reflect the reinvestment of all dividends and capital gains, and the deduction of investment management fees and expenses. They do not reflect charges specific to your contract such as cost of insurance, mortality and expense risk charges, riders and sales charges. If they did, the performance quoted would be significantly lower. For the specific charges and expenses associated with your product, please refer to the prospectus. Returns of less than one year are not annualized.
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Fund Facts & Holdings (As of 12/31/2009 unless noted otherwise)
Portfolio Data2
Inception Date : 9/22/2000
Number of Holdings : 229
Net Assets : $203.3 Million
Largest Stock Holdings (% of Assets-Holdings are subject to change)2
BP PLC1.7%
Novartis Ag1.7   
BNP Paribas S.A.1.5   
Royal Dutch Shell PLC (CL B)1.5   
Teva Pharmaceutical Industries1.3   
Deutsche Bank AG1.3   
Bco Sant Cent Hisp1.3   
E.On Ag1.3   
Komatsu1.2   
Ind & Com Bk China1.2   
 
Top Geographic Concentration (% of Assets)2
United Kingdom19.0%
Japan16.0   
France10.6   
Germany8.1   
Switzerland7.3   
Australia4.3   
Spain3.8   
Hong Kong3.0   
China3.0   
Canada2.8   
 
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PORTFOLIO MANAGEMENT

The following portfolio managers are responsible for the day-to-day management of the Portfolio's investments:

Josef Lakonishok Ph.D., CEO, Partner and Portfolio Manager of LSV since its founding in 1994. He has more than 28 years of Investment and research experience.

Menno Vermeulen, CFA, has served as Portfolio Manager and Senior Quantitative Analyst of LSV since 1995 and a partner since 1998. He has more than 14 years of investment experience.

William Fries has been the lead manager at Thornburg responsible for this strategy since its inception in June 1998. The Value Equity team, which is responsible for the firm's International Value and Domestic Value products consists of 7 Portfolio Manager/Analysts, led by Mr. Fries.

FIRM OVERVIEW
LSV Asset Management
  • Founded in 1994 by renowned academics.
  • The goal is to provide domestic, international and global value equity investment management services for institutional investors.
  • Manages over $34 billion in assets as of 3/31/09.

Thornburg Investment Management
  • Thornburg Investment Management, Inc. is an independent, employee-owned investment management firm located in Santa Fe, New Mexico.
  • Manages $43 billion in assets,6/30/2008.


Investors should consider the contract and the underlying portfolios' investment objectives, risks, and charges and expenses carefully before investing. The contract's prospectus and the underlying portfolios' prospectus contain this and other important information. Read them carefully before investing or sending money.

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FOR USE WITH THE PUBLIC ONLY WHEN PRECEDED OR ACCOMPANIED BY A CURRENT VARIABLE PRODUCT PROSPECTUS, PRODUCT MATERIAL (product brochure or illustration) AND THE CURRENT MONTHLY PERFORMANCE REVIEW FOR THE SPECIFIC PRODUCT.
1The SP International Value Portfolio was formerly know as the SP LSV International Value Portfolio.
2Source: Prudential Investment Management. Holdings are unaudited and subject to change.
For variable life insurance products, refer to the hypothetical illustrations in the prospectus, which show the effect on performance of various assumptions regarding the cost of insurance protection. You may also obtain a personalized illustration of historical performance, which reflects the cost of your policy's insurance protection.
The Portfolio's investment manager, Prudential Investments LLC, is absorbing a portion of the expenses of the Portfolio. That expense absorption may be discontinued at any time. Absent such expense absorption, the performance quoted would be lower.
The Morgan Stanley Capital International EAFE Index (MSCI®) (GD) is a weighted, unmanaged index of performance that reflects stock movements in Europe, Australasia and the Far East. The GD version does not reflect the impact of withholding taxes on reinvested dividends.  These returns do not include the effect of any investment management expenses. These returns would have been lower if they included the effect of these expenses.
Unless noted otherwise, Lipper Average and Index returns reflect performance beginning the closest month-end date to the Portfolio's inception.
Variable life insurance and variable annuities are issued by The Prudential Insurance Company of America, Newark, NJ, Pruco Life Insurance Company, Pruco Life Insurance Company of New Jersey, both located in Newark, NJ, or Prudential Annuities Life Assurance Corporation, Shelton, CT. Variable life insurance is distributed by Pruco Securities LLC, Newark, NJ. Variable annuities are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. Both are members SIPC. All are Prudential Financial companies. Each company is solely responsible for their own respective financial conditions and contractual obligations.
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0171239-00001-00
Ed. 2/2010