The Prudential Series Fund

Partnership. PREI's investment staff is responsible for both general account and third party account real estate
investment management activities.
PREI provides global investment management services to institutional investors worldwide. PREI is headquartered in
Parsippany, New Jersey and has 5 field offices across the United States. As of December 31, 2008, PREI had under
management, within the US, approximately 30.1 million net rentable square feet of office real estate, 37.1 million net
rentable square feet of industrial real estate, 13.5 million net rentable square feet of retail real estate, 109,586 hotel
rooms, 16,081,751 multifamily residential units, and 15.3 million units of self-storage real estate.
PIM has entered into an administrative services agreement with Prudential, Pruco Life, and Pruco Life of New Jersey
under which it pays the companies a fee for performing certain of PIM’s record keeping and other obligations under its
investment management agreement with the Partnership.
Overview
INVESTMENT POLICIES
The Partnership has an investment policy of investing at least 65% of its assets in direct ownership interests in
income-producing real estate and participating mortgage loans. The largest portion of these real estate investments
are direct ownership interests in income-producing real estate, such as office buildings, shopping centers, hotels,
apartments, or industrial properties. Approximately 10% of the Partnership’s assets are generally held in cash or
invested in liquid instruments and securities although the Partners reserve discretion to increase this amount to meet
partnership liquidity requirements. The remainder of the Partnership’s assets are invested in other types of real
estate-related investments, including real estate investment trusts.
Investment in Direct Ownership Interests in Real Estate
Acquisition. The Partnership's principal investment policy involves acquiring direct ownership interests in existing
(including newly constructed) income-producing real estate, including office buildings, shopping centers, apartment
buildings, industrial properties, and hotels. The Partnership may also invest up to 5% of its assets in direct ownership
interests in agricultural land. Property acquisitions will generally be carried out by the real estate acquisition offices in
PREI's network of field offices located in Parsippany, New Jersey, Atlanta, Georgia, Chicago, Illinois and San
Francisco, California. A field office or an affiliate of Prudential Financial supervises the management of properties in
all of PIM's accounts.
Proposals to acquire properties for the Partnership are usually originated by a field office. They are reviewed and
approved by the Investment Management Committee of PREI. Depending upon the size of the acquisition and other
factors, a proposed real estate investment may also be submitted for review to the Investment Committee of the Board
of Directors of Prudential.
Although percentage limitations on the type and location of properties that may be acquired by the Partnership have
not been established, the Partnership plans to diversify its investments through the type of property acquired and its
geographic location. The Partnership's investments will be maintained to meet the Internal Revenue Code
diversification requirements. See General Investment and Operating Policies.
In order for the Partnership to meet its stated objectives, it will have to acquire properties that generate more cash than
needed to pay its gross operating expenses. To do this, a substantial portion of the Partnership's assets will be
invested in properties with operating histories that include established rent and expense schedules. However, the
Partnership may also acquire recently constructed properties that may be subject to agreements with sellers providing
for certain minimum levels of income. Upon the expiration of or default under these agreements, there is no
assurance that the Partnership will maintain the level of operating income necessary to produce the return it was
previously experiencing. The Partnership may purchase real property from Prudential Financial or its affiliates under
certain conditions. See CONFLICTS OF INTEREST.
The property acquired by the Partnership is usually real estate, which is ready for use. Accordingly, the Partnership is
not usually subject to the development or construction risks inherent in the purchase of unimproved real estate. From
time to time, however, the Partnership may invest in a developmental real estate project that is consistent with the
Partnership's objectives. The Partnership will then be subject to those risks.
The Partnership will often own the entire fee interest in an acquired property, but it may also hold other direct
ownership interests. These include, but are not limited to, partnership interests, limited liability company interests,
leaseholds, and tenancies in common.
5 - Real Property