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The Prudential Series Fund, Inc.
Supplement to Prospectus
dated May 1, 1998
The following information replaces in their entirety the first five paragraphs
of disclosure under the heading, 'Investment Objectives and Policies of the
Portfolios--Balanced Portfolios--Conservative Balanced Portfolio' in the
Prospectus:
Balanced Portfolios
Conservative Balanced Portfolio. The objective of this portfolio is to achieve a
favorable total investment return consistent with a portfolio having a
conservatively managed mix of money market instruments, fixed income securities,
and common stocks in proportions believed by the investment manager to be
appropriate for an investor desiring diversification of investment who prefers a
relatively lower risk of loss than that associated with the Flexible Managed
Portfolio while recognizing that this reduces the chances of greater
appreciation.
To achieve this objective, the Conservative Balanced Portfolio will follow a
policy of maintaining a more conservative asset mix among stocks, bonds and
money market instruments than the Flexible Managed Portfolio. In general, the
portfolio manager will observe the following range of target asset allocation
mixes:
Asset Type Minimum Normal Maximum
Stocks 15% 35% 75%
Bonds and Money Market 25% 65% 85%
The portfolio manager will make variations in the proportions of each investment
category in accordance with its judgment about the expected returns and risks of
the various investment categories, but will maintain at least 25% of the value
of the portfolio1s assets in fixed-income securities.
The bond portion of this portfolio will be invested primarily in securities with
ratings at the time of purchase within the four highest grades determined by
Moody1s, S&P, or a similar nationally recognized rating service or if unrated,
of comparable quality in the opinion of the portfolio manager. However, the
portfolio may purchase below-investment grade debt. The risks of medium to lower
rated securities, also known as high risk securities, are described further in
the prospectus. A description of corporate bond ratings is contained in the
Appendix to the statement of additional information.
Up to 20% of the bond portion of this portfolio may be invested in United States
currency denominated debt securities issued outside the United States by foreign
or domestic issuers. The stock portion of this portfolio will be invested
primarily in the equity securities of major, established corporations in sound
financial condition that appear to offer attractive prospects of a total return
from dividends and capital appreciation that is superior to broadly based stock
indices. The portfolio may also invest in preferred stock, including below
investment grade preferred stock, and other equity-related securities. The money
market portion of the portfolio will hold high quality money market instruments
of the kind held by the Money Market Portfolio. Moreover, when conditions
dictate a temporary defensive strategy or during temporary periods of portfolio
structuring and restructuring, the Conservative Balanced Portfolio may invest,
without limit, in high quality money market instruments of the kind held by the
Money Market Portfolio.
Supplement effective August 31, 1998
