Prudential Series Fund N-CSRCertified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT

COMPANIES

Item 1 – Reports to Stockholders

The Prudential Series Fund

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The Prudential Series Fund may offer three classes of shares in each portfolio: Class I, Class II and Class III. Class I and Class III shares are sold to separate accounts of The Prudential Insurance Company of America, Pruco Life Insurance Company, and Pruco Life Insurance Company of New Jersey (collectively, Prudential) as investment options under variable life insurance and variable annuity contracts (Contracts). Class I shares are also sold to separate accounts of insurance companies not affiliated with Prudential where Prudential has assumed responsibility for the administration of contracts issued through such nonaffiliated insurance companies for the same types of Contracts. (A separate account keeps the assets supporting certain insurance contracts separate from the general assets and liabilities of the insurance company.) Class II shares are offered only to separate accounts of non-Prudential insurance companies for the same types of Contracts.

This report may include financial information pertaining to certain portfolios that are not available through the variable life insurance policy or variable annuity contract that you have chosen. Please refer to your variable life insurance or variable annuity prospectus to determine which portfolios are available to you.

At Prudential, our primary objective is to help investors achieve and maintain long-term financial success. Despite today’s uncertainties, we remain strong and ready to serve and support you. This Prudential Series Fund annual report outlines our efforts to achieve this goal. We hope you find it informative and useful.

Prudential has been building on a heritage of success for more than 145 years. You can count on our history of financial stability. We are diversified for endurance. Our balanced mix of risks and businesses positions us well to manage through any economic environment. We’ve applied the lessons from decades of challenges to be stronger, because we are committed to keeping our promises to you.

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Sincerely,

Timothy S. Cronin

President,

Equity Market Overview

A global pandemic caused by a novel coronavirus—followed by massive monetary and fiscal stimulus packages implemented by central banks and governments worldwide—whipsawed equity markets in 2020. When the chaos subsided, stocks in general closed the year higher, with several US indexes setting record highs as investors responded favorably to the stimulus and to new vaccines that they hoped would speed up the recovery.

Performance varied notably by investing style, market capitalization, geography, and sector. While some industries such as travel struggled during the pandemic, others such as online technology benefited from consumers working from home.

In the US, the broad-based Russell 3000 Index and the large-cap S&P 500 Index rose 20.89% and 18.40%, respectively, for the year. Meanwhile, the Dow Jones Industrial Average (Dow) surpassed 30,000 points with a return of 9.92%, and the tech-heavy Nasdaq Composite Index returned 43.64%. Internationally, the MSCI ACWI Ex-US Index, a broad measure of stock performance in developed and emerging markets outside the US, returned 10.65%. (All returns cited are in US dollars unless stated otherwise and assume reinvestment of dividends.)

Economies crashed, nations responded

When the year began, the outlook for the global economy and equity markets was generally upbeat. Sentiment swiftly shifted south in February and into March as concerns about the spread of COVID-19, the disease caused by the coronavirus, alarmed the markets. Many governments throughout the world rolled out restrictions such as stay-at-home orders, travel bans, and temporary business closures to help reduce transmission of COVID-19. These moves took a toll on the global economy, thrusting many countries into recession and sending stock markets sharply lower.

Lawmakers and central banks worldwide quickly implemented extraordinary stimulus to shore up liquidity. In the US, the Federal Reserve (the Fed) cut its federal funds rate target to a range of 0.00%-0.25%. Congress and the Fed rolled out trillions of dollars in combined stimulus. Real gross domestic product (GDP) in the US dropped at an annualized rate of 31.4% over the second quarter, and the national unemployment rate spiked to 14.7% in April. However, the economy responded favorably to the stimulus and reversed course, with GDP vaulting 33.4% over the third quarter.

Stocks retreated, rebounded, and rallied to record highs

Stock markets plunged in the first quarter as investors worried the recession would hamper growth and corporate profits, with the Dow posting its worst first-quarter performance in history. Stocks rebounded in the second quarter as national and state governments reopened their economies, and the Dow recorded its best performance for any quarter since 1987. Over the third quarter and through the end of the year, equity markets fluctuated yet continued their ascent, due in part to regulatory approval of two COVID-19 vaccines and better-than-expected economic data.

In December, the Fed committed to continue buying bonds until the US economy achieves full employment, provided that inflation stays at 2%, and the central bank also maintained its near-zero federal funds rate target. That same month, Congress approved $900 billion of additional fiscal stimulus, and the national unemployment rate dropped to 6.7%. A large number of countries outside the US also remained supportive of the markets. Many stock indexes closed the year at or near all-time highs.

S&P 500: leaders and laggards

Over the period, the top-performing sectors in the S&P 500 were information technology (+43.89%) and consumer discretionary (+33.30%). Many companies in the technology arena benefited from stronger demand for online shopping and delivery services as a result of the pandemic. Other sectors that posted gains were communication services (+23.61%), materials (+20.73%), health care (+13.45%), industrials (+11.06%), consumer staples (+10.75%), and utilities (+0.48%). Sectors that posted negative returns included financials (-1.69%), real estate (-2.17%), and energy (-33.68%). Energy stocks were dragged down by plunging oil prices during the first half of the year. Prices fell due to the onset of a price war between Russia and Saudi Arabia and lower oil demand after travel declined during the pandemic. Prices eventually stabilized but ended lower for the year.

Growth outshined value, large caps edged out small caps

Over the year, the Russell 3000 Growth Index returned 38.26%, far surpassing the Russell 3000 Value Index, which rose 2.87%. The large-cap Russell 1000 Index gained 20.96%, the Russell Midcap Index returned 17.10%, and the small-cap Russell 2000 Index returned 19.96%. Although large caps outperformed smaller caps, the small-cap index topped its large-cap counterpart over the third and fourth quarters, with the indexes returning 37.85% and 24.46%, respectively, during that time.

Emerging market equities posted robust overall gains

Emerging market equities, as measured by the MSCI Emerging Markets Investable Market Index, dropped sharply in the first quarter but rebounded to return 18.40% for the year. The recovery was driven by a pickup in China’s economy fueled by aggressive stimulus and a surge in exports. Top-performing markets included Korea, Taiwan, China, and India, all of which posted double-digit returns. Latin American markets, Russia, and South Africa finished lower.

International developed market stocks rose, but regional results were mixed

For the year, stocks in developed markets outside the US and Canada, as measured by the MSCI EAFE Index, lagged those in emerging markets but advanced 7.82%. The MSCI Japan Index returned 14.48%, aided by substantial fiscal and monetary stimulus. The Japanese yen, often perceived as a “safe haven” currency, gained 5.3% against the US dollar. European equities, as measured by the MSCI Europe Index, ended in negative territory in local-currency terms yet returned 5.38% in US dollars. Concerns about the economy eased as the year ended after the European Union and the United Kingdom (UK) agreed to a post-Brexit trade deal. (Brexit refers to the UK’s exit from the European Union.) The MSCI UK Index returned -10.47%.

Fixed Income Market Overview

Government bond markets worldwide collectively rose in 2020 as central banks aggressively cut interest rates, amplified bond-buying programs, and enacted other stimulus measures to support their economies in response to a disruptive global pandemic caused by a novel coronavirus.

Higher-rated credits performed particularly well early in the year but gave back some gains later as investors gravitated toward riskier assets such as higher-yielding bonds, which plunged early in the year but rallied in the fourth quarter.

The global investment-grade bond market, as measured by the Bloomberg Barclays Global Aggregate Bond Index (unhedged), rose 9.20% for the year. Emerging market debt, based on the J.P. Morgan EMBI Global Diversified Index, returned 5.26%. In the US, the investment-grade Bloomberg Barclays US Aggregate Bond Index rose 7.51%, and high yield bonds (i.e., debt rated below investment grade), as measured by the ICE BofAML US Cash High Yield Index, returned 6.20%. (All returns cited are in US dollars unless stated otherwise.)

Massive stimulus supported global markets and economies

During the first few months of the year, many governments worldwide began to impose travel restrictions, stay-at-home orders, and social distancing guidelines to reduce the spread of COVID-19, the disease caused by the coronavirus. Many of these remedies crippled the travel, restaurant, energy, leisure, and various services industries.

To help buoy markets and local economies, policymakers and central banks responded with unprecedented levels of stimulus, beginning in the first quarter. In the US, the Federal Reserve (the Fed) slashed its federal funds rate target to virtually zero. Lawmakers and the Fed then rolled out trillions of dollars in combined stimulus. The central bank also implemented emergency lending facilities, expanded its asset-purchase program to include individual corporate bonds, and unveiled other bold initiatives. Although real gross domestic product (GDP) fell at an annualized rate of 31.4% in the second quarter and national unemployment spiked to 14.7% in April, the economy rebounded in the second half of the year. GDP rose 33.4% in the third quarter, and unemployment closed December at 6.7%—far below April’s peak but still above pre-pandemic levels. The dollar, as measured by the US Dollar Index, dropped 6.7%. Inflation remained subdued.

Elsewhere, China’s economy weathered the COVID-19 crisis better than many other regional markets, largely due to severe lockdowns, stimulus packages, and a sharp rise in exports. The country’s exports soared almost 20% during the pandemic, surpassing exports of countries outside the region, including the US and eurozone. Latin America’s economy was a laggard, and many developed nations fell into recession as a result of the pandemic.

In December, the Fed maintained its near-zero federal funds rate target, and the central bank committed to continue buying bonds until the US economy achieves full employment, provided that inflation stays at 2%. Congress also approved $900 billion of additional fiscal stimulus. Outside the US, many nations maintained a stimulus mindset as they continued to deal with pandemic-related challenges.

A banner year for investment-grade bonds

During the first quarter, US investment-grade bond yields, which move opposite to bond prices, dropped in reaction to substantial monetary easing and a “flight to quality” from stocks and other riskier securities. At the time, investors favored higher-quality credits, particularly US Treasuries with longer maturities.

As investors’ risk appetite increased during the second half of year, yields on higher-rated debt such as Treasuries rose on worries that the implemented stimulus packages could lead to higher inflation. Higher-yielding assets fell into favor. The yield on the 10-year US Treasury dropped from approximately 1.88% at the beginning of 2020 to 0.70% at the end of the first quarter, and fell further to 0.58% during late April on strong demand. However, the yield subsequently rose to close 2020 at 0.93%, albeit notably lower than where it started the year.

Over the year, longer-dated US Treasury bonds returned 17.70%, while US Treasuries in general returned 8.00%. Treasury inflation-protected securities rose 10.99%. (Returns of US investment-grade bonds noted are based on Bloomberg Barclays bond indexes unless stated otherwise.)

Investment-grade corporate bonds delivered a stellar return of 9.89%. Central banks’ extraordinary moves to support markets, investors’ reaction to stimulus, expectations that US interest rates will remain low for some time, regulatory approval of two COVID-19 vaccines, and better-than-expected corporate earnings results fueled demand for corporates in the latter part of the year. Other notable performers included commercial mortgage-backed securities, which returned 8.11%, and municipal bonds, which rose 5.21%.

High yield bonds rebounded after a rocky start

As mentioned earlier, US high yield bonds returned 6.20% in 2020, thanks to a rebound late in the year. Earlier in 2020, high yield bond prices tumbled when concerns about the pandemic’s potential economic consequences were intensifying and crude oil prices were plunging. Prices fell due to the onset of a price war between Russia and Saudi Arabia and lower oil demand after travel declined during the pandemic. The lower prices hurt oil exporters, which constitute a significant chunk of the high yield issuer market.

Oil prices eventually stabilized but ended lower over the year. The price of a barrel of West Texas Intermediate crude oil traded above $61 when 2020 began and closed the year slightly above $48. The high yield market staged a comeback later in the year as investors applauded approval of the two COVID-19-vaccines. High yield bonds returned 6.50% over the fourth quarter.

Emerging market debt also rallied in the final quarter

Emerging market debt ended 2020 in positive territory, rising 5.26% for the year as mentioned earlier, including 5.80% in the fourth quarter. Like many high yield bond issuers, emerging market debt issuers include many exporters of crude oil.

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Conservative Balanced Portfolio returned 11.43%. The Portfolio underperformed both its Blended Index and the S&P 500 Index.

What were the market conditions during the reporting period?

Following one of the quickest bear markets in US history during the first quarter of calendar-year 2020 (the reporting period), US equity markets bounced back dramatically later in the period, catching many investors off balance. Initial drivers of the recovery included positive reactions to robust fiscal and monetary stimulus, as well as a better understanding of the effects of the COVID-19 virus.

The rebound continued into the fourth quarter of 2020 as investment markets reacted strongly to positive vaccine news, with a sharp rotation into cyclical, value, and small-cap stocks that helped reduce their underperformance for the period. Pfizer-BioNTech and Moderna received regulatory approval for COVID-19 vaccines near the end of the period, with effectiveness rates exceeding 90% in final clinical trials. Performance was also helped by expectations of further federal stimulus packages following US election results.

Within fixed income markets, US interest rates dropped sharply in the first quarter of 2020, bottoming over the summer and recovering slightly by the end of the period. COVID-19 vaccination developments helped raise inflation estimates, which reflected the vast amounts of stimulus that had been injected into the economy over the period and also hopes for economic normalization. The Federal Reserve continued to communicate a loose monetary policy, ensuring investors that the central bank would continue to support the ongoing economic recovery. Complicating matters near the end of the period, however, were a rise in hospitalizations, renewed shutdowns, and the discovery of new variants of the virus. Production and mass distribution of vaccines are now the focus before economies are able to reopen and normalize.

What strategies or holdings affected the Portfolio’s performance?

Asset allocation decisions had a negative impact on the Portfolio’s performance during the period, driven by a slight overweight exposure to risk assets at the beginning of the first quarter of 2020. Although the Portfolio was quick to adjust its position, the speed of the drawdown in February and March made the impact material. Otherwise, the effects from asset allocation were slightly positive during the period.

The Portfolio shifted to an overweight position in equities for the remainder of the period, participating in the steady rebound in demand for risk assets. The overweight position was funded by allocations from both bonds and cash, which remained below the Portfolio’s benchmark index weight for the remaining quarters and underperformed the index. A small off-index diversifying exposure to international equities was a drag on performance as it trailed US equities during the period. The fixed income sleeve was a positive contributor during the period, bouncing back strongly following negative performance during the first quarter.

At period-end, the Portfolio was positioned with an overweight exposure to equities, a small position in international equity markets, and underweight exposures to fixed income investments and cash.

The Portfolio used equity futures and Treasury bond futures during the period to gain specific exposures to various markets. The use of these derivative instruments allowed the Portfolios to manage cash flows as well as risk. In aggregate, the derivative positions had a positive impact on the Portfolio’s performance during the period by allowing the portfolio management team to respond quickly to major market movements — such as the COVID crash — through the use of these highly liquid futures contracts.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

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Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

2

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Diversified Bond Portfolio returned 8.45%. The Portfolio outperformed the Bloomberg Barclays U.S. Aggregate Bond Index.

What were the market conditions during the reporting period?

Markets in calendar-year 2020 (the reporting period) were dominated by the global outbreak of COVID-19, its economic impact, and the decline and subsequent rebound in risk sentiment. The optimism generated by the US-China trade deal at the beginning of the period quickly gave way to lockdowns, spiraling unemployment, and a sharp drop in US gross domestic product. US Treasury yields dropped and spread sectors declined sharply in March before narrowing into the end of the first quarter following aggressive actions from the Federal Reserve (the Fed). With the economy decelerating rapidly and financial markets selling off sharply in the first quarter, the Fed quickly deployed — and then moved beyond — its playbook from the global financial crisis in 2008-09 by cutting its policy rate to a range of 0.00%-0.25%, reopening its swap lines, unleashing unlimited quantitative easing purchases, and injecting huge quantities of liquidity into the markets. Following a difficult first quarter, spread markets rebounded through the remainder of the period amid improving economic data and a gradual reopening of the economy. This optimism was somewhat offset by threats of a second COVID-19 wave. However, emergency regulatory approval of the Pfizer-BioNTech and Moderna vaccines supported markets into the end of the period.

US Treasury rates sold off and steepened during the period, with the 10-year/2-year Treasury spread rising from 0.34% to 0.80% over the period. In early August, the US 10-year Treasury yield dropped to its low for the period as COVID-19 cases flared up across the country, with the yield dropping to 50 basis points and the curve flattening amid uncertainty over the economic reopening. (One basis point equals 0.01%.) The Treasury curve then steepened in the last part of the period after the Fed adjusted its inflation-targeting framework to allow for overshoots of its 2% inflation target.

What strategies or holdings affected the Portfolio’s performance?

During the period, individual issue selection and sector allocation both contributed to outperformance. Overall sector allocation was positive, with overweights to high yield and collateralized loan obligations adding to the Portfolio’s performance. An underweight to mortgage-backed securities also added value. Overweights to emerging markets, investment-grade corporate bonds, municipal bonds, and bank loans detracted from the Portfolio’s performance. Strong security selection was highlighted by positioning in Treasuries, emerging markets, investment-grade corporates, and sovereigns. This was partially offset by selection in high yield and commercial mortgage-backed securities, which detracted from returns. Within credit, the Portfolio benefited from positions in the foreign non-corporate, healthcare & pharmaceutical, technology, and telecom sectors. Positions in the gaming & lodging & leisure, midstream energy, and aerospace & defense sectors detracted from the Portfolio’s performance. The Portfolio’s duration positioning added to performance for the period; however, this was somewhat offset by yield curve positioning, which detracted from the Portfolio’s performance. Duration is a measure of a bond’s price sensitivity to interest rate changes over time.

During the period, the Portfolio used interest rate swaps to help manage duration and yield curve exposure. The use of interest rate swaps had a positive impact on the Portfolio’s performance during the period. In addition, the Portfolio used futures to manage interest rate risk, a more efficient way of managing interest rate risk than through the purchase and sale of cash bonds. The use of futures and options contributed to the Portfolio’s performance during the period. The Portfolio also used credit derivatives in the form of the Credit Default Swap Index (CDX) to manage credit risk. The use of CDX added to performance for the period.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

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Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

Credit ratings reflect the middle rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investor Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent, and are widely used. The Not Rated (NR) category consists of securities that have not been rated by a NRSRO. Ratings category may include derivative instruments that could have a negative value. Credit ratings are subject to change.

4

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, Equity Portfolio Class I shares returned 29.00% and Class II shares returned 28.49%. The Portfolio’s Class I & II shares outperformed both the Russell 1000 Index and the S&P 500 Index.

What were the market conditions during the reporting period?

US equities experienced periods of elevated volatility in calendar-year 2020 (the reporting period), but generally posted strong returns. After reaching an all-time high in mid-February 2020, equity markets abruptly reversed course, falling sharply later that month as the rapidly spreading COVID-19 virus and efforts to contain its spread took a toll on the global economy. Stocks rebounded from late March through the end of the period after aggressive monetary policy was implemented by the Federal Reserve, meaningful and significant fiscal stimulus was passed by the US Congress, the November presidential election was resolved, and two COVID-19 vaccines received regulatory approval in December. These factors eclipsed a resurgence of COVID-19 infections that threatened the economy late in the period.

The S&P 500 Index (the Index) gained 18.40% during the period. By sector, performance was mixed as seven sectors in the Index posted positive returns while four declined. Index gains were led by the information technology, consumer discretionary, and communication services sectors, all of which rose more than 20% over the period. In contrast, the energy, real estate, and financials sectors were the worst-performing sectors. Individual stocks that were the Index’s top contributors to performance during the period included Apple, Inc., Amazon.com, Inc., and Microsoft Corp. Conversely, Exxon Mobil Corp., Wells Fargo & Co., and AT&T, Inc. were among its top detractors.

What strategies or holdings affected the Portfolio’s performance?

The Portfolio’s positions among automobile manufacturers were the dominant driver of absolute gains during the period, while holdings in the application software and internet & direct marketing retail industries contributed to a lesser degree. Meanwhile, positions in the aerospace & defense, diversified banks, and health care equipment sectors hampered the Portfolio’s absolute gains.

Relative to the Index, the Portfolio’s security selection and overweight position in automobile manufactures added the most value. Security selection in both data processing & outsourced services and semiconductors also was beneficial. Conversely, an overweight position in apparel accessories & luxury goods, along with security selection in aerospace & defense and managed health care, were among the main detractors from performance.

The most notable individual stock contributors to the Portfolio’s overall performance included electric car manufacturer Tesla, Inc., multinational technology company Apple, and e-commerce retailer Amazon.com. Tesla posted impressive financial results throughout the period, made possible by solid production, increased capacity, and strong execution. With its huge installed base, Apple continued to benefit from rapid growth in service business subscriptions, a key source of recurring revenue. Amazon continued to benefit from economies of scale and its platform-based business model, and it continued to strengthen its competitive edge by reinvestment in its businesses. Its Amazon Web Services cloud-computing platform remained an additional driver of revenue and profit.

For a complete list of holdings, refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

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Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Top detractors for the period included airline manufacturer The Boeing Co., aerospace-component and defense company Safran S.A., and medical device company Zimmer Biomet Holdings, Inc. Boeing has been affected by the longer-than-anticipated 737 Max 8 jet recertification process and the effects of the COVID-19 outbreak, which restricted air travel and compromised the financial health of airlines. The Portfolio eliminated its Boeing position during the period. Safran was also hurt by the pandemic’s impact on air travel. However, as COVID-19 vaccines are distributed and administered, the travel and aircraft industries are expected to rebound. Zimmer Biomet’s second-quarter 2020 revenue fell sharply as elective surgeries were postponed due to the pandemic. However, results improved as the year progressed, and the company could benefit from the COVID-19 vaccines.

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

6

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Flexible Managed Portfolio returned 9.59%. The Portfolio underperformed both its Blended Index and the S&P 500 Index.

What were the market conditions during the reporting period?

Following one of the quickest bear markets in US history during the first quarter of calendar-year 2020 (the reporting period), US equity markets bounced back dramatically later in the period, catching many investors off balance. Initial drivers of the recovery included positive reactions to robust fiscal and monetary stimulus, as well as a better understanding of the effects of the COVID-19 virus.

The rebound continued into the fourth quarter of 2020 as investment markets reacted strongly to positive vaccine news, with a sharp rotation into cyclical, value, and small-cap stocks that helped reduce their underperformance for the period. Pfizer-BioNTech and Moderna received regulatory approval for COVID-19 vaccines near the end of the period, with effectiveness rates exceeding 90% in final clinical trials. Performance was also helped by expectations of further federal stimulus packages following US election results.

Within fixed income markets, US interest rates dropped sharply in the first quarter of 2020, bottoming over the summer and recovering slightly by the end of the period. COVID-19 vaccination developments helped raise inflation estimates, which reflected the vast amounts of stimulus that had been injected into the economy over the period and also hopes for economic normalization. The Federal Reserve continued to communicate a loose monetary policy, ensuring investors that the central bank would continue to support the ongoing economic recovery. Complicating matters near the end of the period, however, were a rise in hospitalizations, renewed shutdowns, and the discovery of new variants of the virus. Production and mass distribution of vaccines are now the focus before economies are able to reopen and normalize.

What strategies or holdings affected the Portfolio’s performance?

Select Portfolio underlying investments detracted from Portfolio returns and accounted for the majority of underperformance over the period. Specifically, the core US equity manager had a difficult period as a preference for inexpensive, high-quality stocks failed to keep pace with the strong performance of growth equities during the period. The fixed income manager ended the period in positive territory.

Asset allocation decisions also had a negative impact on the Portfolio’s performance during the period, driven by a slight overweight exposure to risk assets at the beginning of the first quarter of 2020. Although the Portfolio was quick to adjust its position, the speed of the drawdown in February and March made the impact material. Otherwise, the effects from asset allocation were slightly positive during the period.

The Portfolio shifted to an overweight position in equities for the remainder of the period, participating in the steady rebound in demand for risk assets. The overweight position was funded by allocations from both bonds and cash, which remained below the Portfolio’s benchmark index weight for the remaining quarters and underperformed the index. A small off-index diversifying exposure to international equities was a drag on performance as it trailed US equities during the period.

At period-end, the Portfolio was positioned with an overweight exposure to equities, a small position in international equity markets, and underweight exposures to fixed income investments and cash.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

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Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

The Portfolio used equity futures and Treasury bond futures during the period to gain specific exposures to various markets. The use of these derivative instruments allowed the Portfolios to manage cash flows as well as risk. In aggregate, the derivative positions had a positive impact on the Portfolio’s performance during the period by allowing the portfolio management team to respond quickly to major market movements — such as the COVID crash — through the use of these highly liquid futures contracts.

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

8

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Global Portfolio returned 15.84%. The Portfolio underperformed the MSCI World Index (GD).

What were the market conditions during the reporting period?

It was a wild ride for markets in calendar-year 2020 (the reporting period), as the COVID-19 outbreak and subsequent lockdown/recession drove equity markets to the fastest plunge ever into a bear market. From its peak in early February to its low in March, the S&P 500 Index fell 34% in a month, with similar stock market declines in Europe, Japan, and emerging markets. US stocks saw a steeper decline of 57% during the 2008-09 global financial crisis; however, that drop occurred over a 17-month period. An unprecedented and timely policy response from the Federal Reserve helped equity markets rebound at the end of March and in April. Stocks also benefited from evidence that the initial lockdowns and quarantines succeeded in reducing the spread of COVID-19 in late spring, which enabled states to relax restrictions and reopen their economies over the summer.

What strategies or holdings affected the Portfolio’s performance?

The subadvisors’ performance during the period was mixed. The Portfolio’s international growth subadvisor significantly outperformed its style-specific benchmark and drove the Portfolio’s overall outperformance. The remaining subadvisors each underperformed their style-specific benchmarks during the period.

During the first quarter of 2020, the overall stock market was negatively impacted by the COVID-19 pandemic. The market’s subsequent recovery was driven mainly by technology stocks, which benefited from lockdowns and work-from-home policies by helping certain businesses that could continue to operate under such adverse conditions.

In this environment, the underlying international growth investments were uniquely positioned to outperform its benchmark index. Significant overweight exposure to the information technology sector relative to both the benchmark index, the MSCI EAFE Index, and the overall Portfolio’s benchmark index, the MSCI World Index.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

9

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

10

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Government Income Portfolio returned 7.16%. The Portfolio underperformed the Bloomberg Barclays Government Bond Index.

What were the market conditions during the reporting period?

Markets in calendar-year 2020 (the reporting period) were dominated by the global outbreak of COVID-19, its economic impact, and the decline and subsequent rebound in risk sentiment. The optimism generated by the US-China trade deal at the beginning of the period quickly gave way to lockdowns, spiraling unemployment, and a sharp drop in US gross domestic product. US Treasury yields dropped and spread sectors declined sharply in March before narrowing into the end of the first quarter following aggressive actions from the Federal Reserve (the Fed). With the economy decelerating rapidly and financial markets selling off sharply in the first quarter, the Fed quickly deployed — and then moved beyond — its playbook from the global financial crisis in 2008-09 by cutting its policy rate to a range of 0.00%-0.25%, reopening its swap lines, unleashing unlimited quantitative easing (QE) purchases, and injecting huge quantities of liquidity into the markets. Following a difficult first quarter, spread markets rebounded through the remainder of the period amid improving economic data and a gradual reopening of the economy. This optimism was somewhat offset by threats of a second COVID-19 wave. However, emergency regulatory approval of the Pfizer-BioNTech and Moderna vaccines supported markets into the end of the period.

US Treasury rates sold off and steepened during the period, with the 10-year/2-year Treasury spread rising from 0.34% to 0.80% over the period. In early August, the US 10-year Treasury yield dropped to its low for the period as COVID-19 cases flared up across the country, with the yield dropping to 50 basis points and the curve flattening amid uncertainty over the economic reopening. (One basis point equals 0.01%.) The Treasury curve then steepened in the last part of the period after the Fed adjusted its inflation-targeting framework to allow for overshoots of its 2% inflation target. With central banks re-examining how to achieve the inflation targets that they’ve been missing and with plenty of slack in the global economy, PGIM Fixed Income expects the QE flood to continue, given its key role in underpinning the markets and the recovery. Thus, the fed funds rate can be expected to stay at its current level for some time.

What strategies or holdings affected the Portfolio’s performance?

During the period, both sector allocation and security selection contributed to the Portfolio’s outperformance. An allocation to collateralized loan obligations (CLOs), coupled with an underweight to mortgage-backed securities (MBS), contributed to the Portfolio’s performance. Strong security selection was highlighted by positioning in Treasuries, MBS, CLOs, and commercial mortgage-backed securities. The combined impact of the Portfolio’s duration and yield curve strategies detracted from performance for the period. Duration is a measure of a bond’s price sensitivity to interest rate changes over time.

During the period, the Portfolio used interest rate swaps to help manage duration and yield curve exposure. The use of interest rate swaps had a positive impact on performance during the period. The Portfolio used futures to manage the Fund’s interest rate risk, which is a more efficient way of managing interest rate risk than through the purchases and sales of cash bonds. The use of futures helped the Portfolio’s performance during the period.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

11

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

Credit ratings reflect the middle rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investor Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/ Fitch rating tier nomenclature. These rating agencies are independent, and are widely used. The Not Rated (NR) category consists of securities that have not been rated by a NRSRO. Ratings category may include derivative instruments that could have a negative value. Credit ratings are subject to change.

12

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Government Money Market Portfolio Class I shares returned 0.30% and for the period ended December 31, 2020, Class III shares returned 0.00% from its inception of 5/18/2020. The Portfolio Class I shares outperformed the Lipper US Government Money Market Index.

What were the market conditions during the reporting period?

Markets in calendar-year 2020 (the reporting period) were dominated by the global outbreak of COVID-19, its economic impact, and the decline and subsequent rebound in risk sentiment. The optimism generated by the US-China trade deal at the beginning of the period quickly gave way to lockdowns, spiraling unemployment, and a sharp drop in US gross domestic product. The Federal Reserve (the Fed) quickly deployed — and then moved beyond — its playbook from the global financial crisis in 2008-09 by cutting its policy rate to a range of 0.00%-0.25%, reopening its swap lines, unleashing unlimited quantitative easing (QE) purchases, and injecting huge quantities of liquidity into the markets. Following a difficult first quarter, spread markets rebounded through the remainder of the period as the Fed’s unprecedented monetary responses significantly improved market liquidity. US Treasury rates sold off and steepened during the period, with the 10-year/2-year Treasury spread rising from 0.34% to 0.80% over the period. Meanwhile, the yield on the 3-month Treasury bill declined from 1.55% to 0.08% while the 3-month LIBOR (London Interbank Offered Rate) declined from 1.91% to 0.24%. In the short-term credit markets, investment-grade credit spreads tightened throughout the period. The Bloomberg Barclays 1-3 Year Credit Index, a proxy for the short-term spread market, outperformed similar short-duration Treasuries by 0.57% during the period. (Duration is a measure of a bond’s price sensitivity to interest rate changes over time.)

With central banks re-examining how to achieve the inflation targets that they’ve been missing and with plenty of slack in the global economy, PGIM Fixed Income expects the QE flood to continue, given its key role in underpinning the markets and the recovery. In a recently announced change to its framework for conducting monetary policy, the Fed confirmed that it will be targeting an inflation rate of 2% on average over time, while permitting periods of overshooting 2% to make up for previous undershoots. Thus, the fed funds rate can be expected to stay at its current level for some time.

What strategies or holdings affected the Portfolio’s performance?

For the first quarter of the period, the Portfolio’s weighted average maturity (WAM) remained longer than peers, shortening slightly following the Fed’s action. The Portfolio’s WAM remained longer than peers for the second quarter, then shortened versus peers during the third quarter, and remained shorter than peers throughout the remainder of the period. The Portfolio’s weighted average life remained extended through floating rate securities throughout the period.

Throughout the period, the Portfolio took advantage of changing floating rate spreads and shifted positioning across LIBOR floaters and secured overnight financing rate (SOFR) floaters accordingly. Floaters are bonds or other types of debt whose coupon rate changes with short-term interest rates.

Additionally, to take advantage of changing relative value between the sectors, the Portfolio shifted its positioning in agency discount notes, repurchase agreements, and US Treasuries throughout the period.

* Source: iMoneyNet, Inc. based on 87 funds in the iMoneyNet Prime Retail universe. Weekly 7-day current net yields of the Government Money Market Portfolio and the iMoneyNet Prime Retail universe as of 12/31/2020. The graph is based on the 7-day current net yields of Class I shares.

An investment in the Government Money Market Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $10.00 per share, it is possible to lose money by investing in the Portfolio.

For a complete list of holdings, please refer to the Schedule of Investments section of this report.

13

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

Holdings reflect only short-term investments.

For a complete list of holdings, please refer to the Schedule of Investments section of this report.

14

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the High Yield Bond Portfolio returned 7.11%. The Portfolio outperformed the Bloomberg Barclays US High Yield 1% Issuer Capped Index.

What were market conditions during the reporting period?

The high yield market in calendar-year 2020 (the reporting period) was dominated by the global outbreak of COVID-19, its economic impact, and the decline and subsequent rebound in risk sentiment. The optimism generated by the US-China trade deal at the beginning of the period quickly gave way to lockdowns, spiraling unemployment, and a sharp drop in US gross domestic product. US high yield bond spreads rose to a high of approximately 1,100 basis points (bps) in mid-March before narrowing into the end of the first quarter following aggressive actions from the Federal Reserve (the Fed). (One basis point equals 0.01%.) With the economy decelerating rapidly and financial markets selling off sharply in the first quarter, the Fed quickly deployed — and then moved beyond — its playbook from the global financial crisis in 2008-09 by cutting its policy rate to a range of 0.00%-0.25%, reopening its swap lines, unleashing unlimited quantitative easing purchases, and injecting huge quantities of liquidity into the markets. Following a difficult first quarter, spread markets rebounded through the remainder of the period amid improving economic data and a gradual reopening of the economy. This optimism was somewhat offset by threats of a second COVID-19 wave. However, emergency regulatory approval of the Pfizer-BioNTech and Moderna vaccines supported the high yield market into the end of the period, with high yield spreads ending the year at 386 bps, only 26 bps wider than at the start of the period. For the period, the Bloomberg Barclays 1% Issuer Constrained Index returned 6.59%. By quality, BB-rated credits fared the best, posting a total return of 9.52%, while B-rated and CCC-rated credits returned 4.16% and 2.20%, respectively. The Moody’s 12-month US speculative grade default rate ended November at 6.7%, the highest level registered since the 2008-09 financial crisis.

What strategies or holdings affected the Portfolio’s performance?

During the period, relative outperformance was driven largely by beta management, principally during the first half of the period. (Beta is a measure of the volatility or risk of a security or portfolio compared to the market or index.) Overall sector allocation detracted from the Portfolio’s performance, with underweights to the upstream energy and consumer non-cyclical industries, as well as an overweight to the media & entertainment industries, the largest detractors. This was partially offset by an underweight to the transportation & environmental services industry, as well as overweights to the electric utilities and chemicals industries. Security selection was also negative for the period, principally within the midstream energy and media & entertainment sectors. A few of the overall largest single-name detractors included overweights to AMC Entertainment Holdings, Inc. (gaming & lodging & leisure) and Ferrellgas Partners LP (midstream energy), as well as an underweight to Occidental Petroleum Corp. (upstream energy). This was partially offset by issue selection within telecom, consumer non-cyclicals, metals & mining, and upstream energy sectors, which helped returns. Overweights to telecom names Digicel Group, Sprint Corp., and CenturyLink, Inc. were the largest single-name contributors to the Portfolio’s performance.

During the period, the Portfolio used US Treasury futures to manage the Fund’s interest rate risk, a more efficient way of managing interest rate risk than through the purchase and sale of cash bonds. The impact of futures contributed to the Portfolio’s performance during the period. The Fund used credit derivatives in the form of credit default swaps to manage the overall risk profile of the Fund, which positively impacted the Portfolio’s performance.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

15

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

Credit ratings reflect the middle rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investor Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent, and are widely used. The Not Rated (NR) category consists of securities that have not been rated by a NRSRO. Ratings category may include derivative instruments that could have a negative value. Credit ratings are subject to change.

16

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Jennison 20/20 Focus Portfolio’s Class I shares returned 30.92% and Class II shares returned 30.41%. The Portfolio’s Class I & II shares outperformed both the Russell 1000 Index and the S&P 500 Index.

What were the market conditions during the reporting period?

US equities experienced periods of elevated volatility in calendar-year 2020 (the reporting period), but generally posted strong returns. After reaching an all-time high in mid-February 2020, equity markets abruptly reversed course, falling sharply later that month as the rapidly spreading COVID-19 virus and efforts to contain its spread took a toll on the global economy. Stocks rebounded from late March through the end of the period after aggressive monetary policy was implemented by the Federal Reserve, meaningful and significant fiscal stimulus was passed by the US Congress, the November presidential election was resolved, and two COVID-19 vaccines received regulatory approval in December. These factors eclipsed a resurgence of COVID-19 infections that threatened the economy late in the period.

The S&P 500 Index (the Index) gained 18.40% during the period. By sector, performance was mixed as seven sectors in the Index posted positive returns while four declined. Index gains were led by the information technology, consumer discretionary, and communication services sectors, all of which rose more than 20% over the period. In contrast, the energy, real estate, and financials sectors were the worst-performing sectors. Individual stocks that were the Index’s top contributors to performance during the period included Apple, Inc., Amazon.com, Inc., and Microsoft Corp. Conversely, Exxon Mobil Corp., Wells Fargo & Co., and AT&T, Inc. were among its top detractors.

What strategies or holdings affected the Portfolio’s performance?

The Portfolio’s positions among automobile manufacturers were the dominant driver of absolute gains during the period, while holdings in the data processing & outsourced services and semiconductors industries contributed to a lesser degree. Meanwhile, positions in the trucking, aerospace & defense, and health care equipment sectors hampered the Portfolio’s absolute gains.

Relative to the Index, the Portfolio’s security selection in data processing & outsourced services added the most value. Overweight positions in internet & direct marketing retail and application software also were beneficial. Conversely, an overweight position in apparel accessories & luxury goods, security selection in health care equipment, and an underweight position in technology hardware storage & peripherals were among the main detractors from relative performance.

The most notable individual stock contributors to the Portfolio’s overall performance included electric car manufacturer Tesla, Inc., technology company NVIDIA Corp., and online retailer Amazon.com. Tesla posted impressive financial results throughout the period, made possible by solid production, increased capacity, and strong execution. NVIDIA announced a new generation of products called data processing units, which offload critical networking, storage, and security tasks from central processing units (CPUs). This rollout signaled the company’s pursuit of the highly profitable data center CPU business. Amazon continued to benefit from economies of scale and its platform-based business model, and it continued to strengthen its competitive edge by reinvestment in its businesses. Its Amazon Web Services cloud-computing platform remained an additional driver of revenue and profit.

For a complete list of holdings, refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

17

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Top detractors for the period included ride-sharing company Uber Technologies, Inc., medical device company Zimmer Biomet Holdings, Inc., and health insurance company Humana, Inc. Uber was hit hard by the pandemic and stay-at-home mandates, which led to sharply falling revenues. Zimmer Biomet’s second-quarter 2020 revenues fell sharply as elective surgeries were postponed due to the pandemic. However, results improved as the year progressed and the company could benefit from the COVID-19 vaccines. Investor sentiment for Humana was negatively impacted by rising hospitalization costs due to COVID-19. Uber, Zimmer Biomet, and Humana were no longer held at the end of the reporting period.

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

18

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Jennison Portfolio Class I shares returned 56.20% and Class II shares returned 55.57%. The Portfolio’s Class I & II shares outperformed both the Russell 1000 Growth Index and the S&P 500 Index.

What were the market conditions during the reporting period?

Equity markets were extremely volatile in calendar-year 2020 (the reporting period), unsettled by US-China trade discord and the COVID-19 pandemic. Stocks peaked at new highs in early 2020, then dropped dramatically in late February as the pandemic spread around the globe. The realities of the pandemic dictated daily conduct for individuals, businesses, and governments worldwide, as shelter-in-place and work-from-home initiatives became common. Stocks rebounded rapidly later in the period, but the pandemic-related economic damage continued to accumulate. The effects of fiscal stimulus blunted the pandemic’s impact on employment and spending, while comprehensive monetary policy initiatives to bolster liquidity and stabilize asset prices contributed to record-low interest rates.

What strategies or holdings affected the Portfolio’s performance?

Consumer discretionary positions were strong positive contributors to Portfolio performance during the reporting period. Shares of Tesla, Inc. continued to surge on impressive financial results made possible by solid production, increased capacity, and strong execution. The company’s technology, scale, and low-cost advantage have made it the breakaway leader in the electric vehicle market, and Jennison believes these characteristics also position Tesla to disrupt the overall automotive industry. Consumer businesses that have migrated to digital direct-to-consumer business models were notably strong performers, including Amazon.com, Inc. Amazon has operated in this mode for years, and its relevance and dominance became even more apparent during the period as the firm continued to benefit from economies of scale and its platform-based business model. The Amazon Web Services (AWS) cloud-computing platform remained a significant additional driver of revenue and profit.

In information technology, digital payments processors were strong performers. Netherlands-based Adyen NV has developed a dynamic, reliable, and secure payment platform that supports omnichannel commerce with end-to-end gateway, risk management, and processing services. PayPal Holdings, Inc., the largest e-commerce payments enabler in the US and many developing countries, is deepening and extending its services to global consumers and business clients. The growing importance of digital commerce in times of restricted personal mobility is also benefiting Shopify, Inc., the Canadian provider of user-friendly, cloud-based infrastructure tools to enable omnichannel e-commerce capability.

With millions of people around the world working from home, the advantage of housing mission-critical software applications and services on the cloud became clear. In addition to a strong and stable enterprise business, Microsoft Corp. has a differentiated hybrid cloud strategy that is leading to an increase in its share of technology capital spending. Its Azure cloud business hosts Microsoft software as well as hundreds of cloud-native applications created by Microsoft customers or third parties. Adobe, Inc. offers content creation and digital marketing applications and services that are transforming businesses operations.

Chipmaker NVIDIA Corp. benefited from increased demand for cloud storage, which led to robust data center spending by its largest customers. In Jennison’s view, NVIDIA’s April 2020 acquisition of Mellanox Technologies Ltd. could enhance NVIDIA’s functionality and potentially lead to further market share gains in the data center space.

For a complete list of holdings, refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

19

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

With its huge installed base, Apple, Inc. is benefiting from rapid growth in service business subscriptions, a key source of recurring revenue. Jennison believes the company’s current product cycle should provide robust revenue and profit growth.

In communication services, Netflix, Inc. continued to enhance its long-term competitive position with the industry’s largest commitment of investment dollars in exclusive and original content. Given its still-low global penetration and the accelerating shift from linear TV, Jennison believes Netflix still has significant room for growth.

The Portfolio’s industrials holdings advanced but lagged the sector’s gain within the Russell 1000 Growth Index. The longer-than-anticipated 737 Max 8 jet recertification process weighed on The Boeing Co. early in the period. With the pandemic restricting air travel and compromising the financial health of airlines, the Portfolio’s position in the company was eliminated during the period. Jennison also closed the Portfolio’s position in Safran SA based on the company’s exposure to the airline industry, as most of Safran’s revenue is generated by aircraft engine production.

The position in Adidas AG was eliminated based on the company’s softer-than-expected gross margin, COVID-19-related sporting event cancellations, and an anticipated backup in wholesale inventories.

Lastly, Jennison eliminated the Portfolio’s position in FleetCor Technologies, Inc., which provides specific-purpose charge cards and payment-processing services for commercial and government trucking fleets, based on the overhang from regulatory litigation related to the company’s marketing and fee practices, as well as its exposure to oil prices.

Presentation of Portfolio Holdings — unaudited

For a Complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

20

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Natural Resources Portfolio Class I shares returned 12.28% and Class II shares returned 11.82%. The Portfolio’s Class I & II shares outperformed the Blended Index and underperformed the MSCI World Index (GD).

What were the market conditions during the reporting period?

The COVID-19 pandemic made calendar-year 2020 (the reporting period) the most volatile year for investment markets since the global financial crisis in 2008. Global pandemic fears led to an extremely sharp sell-off in risk assets in February and March 2020. While the whole market experienced severe downside pressures, stocks in the cyclical and value segments of the market were hit especially hard, given their sensitivity to slower global economic growth during the reporting period. In addition, an ill-fated attempt at a price war by the Organization of the Petroleum Exporting Countries (OPEC) led to a collapse in the price of crude oil and energy stocks.

The market began to recover in April, and gains continued through the end of the period (the recovery period), driven by massive economic stimulus around the world as well as renewed optimism for a potential resumption of growth following the pandemic. The value and cyclical segments of the Portfolio recovered along with the market, with many subsectors outperforming the Portfolio’s benchmark index, the MSCI World Energy/Materials (60%/40%) Index (the Index), during the recovery period. Despite the strong rebound from the lows, energy stocks finished sharply lower for the reporting period, while mining stocks finished sharply higher and chemical stocks were mixed.

Early in the reporting period, the Portfolio began building a large overweight allocation of stocks expected to benefit from the ongoing transition of traditional fossil energy sources to renewable energy initiatives (e.g., solar, wind, hydrogen, electronic vehicles, and batteries). Renewable energy stocks delivered exceptionally robust performance versus the Index during the reporting period given superior growth characteristics, escalating policy support, and strong operational results.

During the reporting period, commodity prices were extremely volatile, with oil stocks trading in negative territory for a short time before recovering strongly by the end of the reporting period. Copper prices rallied throughout the period, based in part on a strong economic recovery in China as well as incremental optimism over long-term demand for copper used to produce electronic vehicles and solar, wind, and electrical infrastructure.

What strategies or holdings affected the Portfolio’s performance?

Management of risk combined with the Portfolio’s flexible and adaptive investment style was a strong contributor to performance during the reporting period. During the sharp sell-off in February and March of 2020, the subadvisors reduced the Portfolio’s risk and increased cash levels to mitigate downside risk. As a result, the Portfolio outperformed the Index during a period of extreme volatility. Beginning in April, the Portfolio was fully invested again, adding more risk and expanding its stock holdings in renewable energy. These actions led to substantial outperformance during the recovery period as well. All areas of focus for the Portfolio — energy, materials, industrials, and agriculture — delivered outperformance versus the Index during the reporting period.

The biggest contributors to outperformance during the reporting period were positions in renewable energy, with holdings in solar, wind, hydrogen, batteries, and electronic vehicles driving considerable absolute and relative performance. The subadvisors were early in identifying the powerful

For a complete list of holdings, refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

21

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

energy theme and repositioned the Portfolio to benefit from growing consumer demand. Top contributors included Enphase Energy Inc., Plug Power Inc., Sunrun Inc., SolarEdge Technologies Inc., Tesla Inc., Vestas Wind Systems A/S ADR, Sunnova Energy International Inc., LG Chem Ltd., and Samsung SDI Co.

In the materials sector, the Portfolio’s positions in copper and diversified miners delivered the strongest relative performance during the reporting period, led by First Quantum Minerals Ltd., Freeport-McMoRan Inc., Rio Tinto Ltd., and BHP Group Ltd.

Overall, the positive contribution from the Portfolio’s underweight exposure to the hard-hit energy sector more than made up for a negative contribution from stock selection.

Entering 2021, the subadvisors are optimistic about continued absolute and relative performance for the Portfolio, which remains broadly diversified across multiple attractive investment themes. The subadvisors believe the Portfolio has an excellent combination of secular growth and cyclical leverage. The Portfolio has a large overweight position within the “energy transition” investment theme. The subadvisors see escalating policy support in the US and around the world; rapidly declining costs; demand from governments, businesses, and consumers for renewable energy; powerful growth for electronic vehicles, and increasing credit given to companies with strong ESG — environmental, social, and governance — profiles.

In the oil and gas sectors, the subadvisors expect a market recovery from the severe underperformance of the preceding years, driven by newfound capital discipline, strong free cash flows, and attractive valuations relative to the market. If inflation and interest rates begin to move higher, the subadvisors expect this may provide a powerful catalyst for growth in certain cyclical portions of the Portfolio.

At times, the Portfolio uses a buy-write strategy, with call options written against long equity positions. At any given time, call options may be written against some of the long exposures, depending on premium income, market volatility, and outlook on underlying positions. The Portfolio did not use derivatives during the reporting period.

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

22

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Small Capitalization Stock Portfolio returned 10.99%. The Portfolio underperformed the S&P SmallCap 600 Index.

What were the market conditions during the reporting period?

The COVID-19 pandemic was the major headline during calendar-year 2020 (the reporting period). The pandemic had a significant negative impact on global economies during the first quarter of 2020. Fiscal and monetary stimulus policies led to a steep recovery in US stock prices in the second quarter, along with strong employment numbers as the US economy began to reopen. US equities ended the period in record-high territory, fueled by two vaccines that gained emergency use authorization from the US Food and Drug Administration in the fourth quarter and also by additional monetary stimulus and a projected resolution of the US presidential election.

What strategies or holdings affected the Portfolio’s performance?

The Portfolio slightly underperformed its benchmark index, the S&P Small Cap 600 Index (the Index), during the period. Potential tracking error differences (i.e., the difference between the return of the Portfolio and the return of the Index) — as well as brokerage and other costs and expenses — may cause the Portfolio’s return to be lower than that of the Index.

In terms of positions, biopharmaceutical firm Momenta Pharmaceuticals, Inc. and fashion holding company Capri Holdings Ltd. were the largest contributors to the Portfolio’s performance during the period, while mortgage finance firms Invesco Mortgage Capital Inc. and New York Mortgage Trust, Inc. were the largest detractors. Momenta shares were eliminated from the Portfolio after the company was acquired and were no longer held at the end of the reporting period.

Most of the Portfolio’s buy or sell trades were performed “market-on-close” (i.e., as close as possible to the end of the trading day in order to more closely track the Index). The Portfolio also seeks to add income through securities lending. This income tends to be greater for small-cap stocks, which are often more difficult to borrow because they are not typically as widely traded as their mid-cap and large-cap counterparts.

The Portfolio had modest exposure to derivative instruments in the form of futures to help enhance liquidity, but the position did not have a material impact on performance during the period.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

23

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

24

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the SP International Growth Portfolio Class I shares returned 32.11% and Class II shares returned 31.58%. The Portfolio’s Class I & II shares outperformed the MSCI EAFE Index (GD).

What were the market conditions during the reporting period?

For calendar-year 2020 (the reporting period), the MSCI EAFE Index rose 8.28% despite the global COVID-19 crisis. While absolute returns for the index were positive, markets in Western European countries generally trailed US markets. For example, the S&P 500 Index, a broad-based index of large US stocks, rose 18.40% over the period. At the end of the period, many investors were optimistic about regulatory approval of two COVID-19 vaccines and the beginning of worldwide distribution. International stocks were bolstered by a weaker US dollar attributable to fiscal and monetary support from Congress and the Federal Reserve. As the period progressed, investors started to embrace risk, favoring stocks with growth and momentum characteristics. From a sector perspective, information technology and materials advanced while energy and real estate lagged.

What strategies or holdings affected the Portfolio’s performance?

All three of the Portfolio’s subadvisors had positive exposures to growth and price momentum, which were key factors driving positive relative returns during the period. Jennison favors a more aggressive portfolio and William Blair incorporates growth and momentum. Meanwhile, Neuberger Berman’s exposures to the aforementioned factors were a residual of its bottom-up stock selection process. In addition, each subadvisor’s underexposure to dividend-paying stocks with higher leverage further enhanced results. Investors eschewed these characteristics, doubting whether these companies could continue their dividend payments and sustain higher debt ratios during the pandemic.

Stock selection was also additive to relative performance, as all three of the Portfolio’s subadvisors invested in technology and avoided energy stocks during the period. Energy stocks performed poorly during the period as demand for oil dropped while consumers stayed at home amid the pandemic. The subadvisors instead invested in internet retail, software, and services, which performed well during the period. Given their growth mandate, the Portfolio’s subadvisors favored companies in these faster-growing industries and were subsequently rewarded.

Finally, the Portfolio benefited as all three subadvisors were overweight Chinese stocks, which outperformed during the period. China is home to the some of the world’s fastest-growing technology and internet firms. Although COVID-19 is believed to have originated in China, stocks there were also boosted by the country’s seemingly faster economic recovery during the pandemic versus other parts of the world.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

25

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

26

Report of the Investment Managers - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the SP Prudential U.S. Emerging Growth Portfolio Class I shares returned 47.47% and Class II shares returned 46.90%. The Portfolio’s Class I & II shares outperformed both the Russell Midcap Growth Index and the S&P Midcap 400 Index.

What were the market conditions during the reporting period?

Despite a volatile calendar-year 2020 (the reporting period) marked by the COVID-19 pandemic, US equity markets ended the period higher as the broad-based S&P 500 Index returned 18.40%. Within the mid-cap market, it was a positive year for growth stocks, with the Russell Midcap Growth Index returning 35.59% for the period versus the 4.96% return for the Russell Midcap Value Index.

The market environment strongly favored growth stocks during the period, which offered a positive backdrop for the Portfolio’s strategy. The Portfolio skewed toward companies benefiting from structural change, which helped performance as many secular trends that were in place before the pandemic — including digital transformation, artificial intelligence, and electric/autonomous vehicles — were turbocharged throughout the period.

Within the Russell Midcap Growth Index, every sector posted a positive return. The telecommunications (+74.1%) and technology (+58.4%) sectors had the highest returns. The utilities (+9.4%) and basic materials (+15.6%) sectors lagged.

What strategies or holdings affected the Portfolio’s performance?

The Portfolio outperformed the Russell Midcap Growth Index during the period, helped by stock selection and stylistic tailwinds that saw growth stocks outperforming value. Stock selection across a variety of sectors drove outperformance, with the consumer discretionary and technology sectors leading the way. Stock selection in health care was the top detractor from the Portfolio’s performance, followed by real estate.

From an individual stock perspective, overweight positions in Tesla, Inc. and Enphase Energy, Inc. were the top contributors to the Portfolio’s performance. Tesla outperformed during the period as investors embraced the electric car company’s ability to sustain demand at higher production levels and profitable price points. The Portfolio eliminated its Tesla position in the third quarter due to market-capitalization constraints. Solar technology firm Enphase also outperformed after consistently posting strong quarterly results highlighted by solid customer demand. A more favorable political backdrop and the stock’s announced inclusion in the S&P 500 Index in the fourth quarter also drove shares higher.

Not owning digital documents provider DocuSign, Inc. and cloud communications provider Twilio, Inc. were the Portfolio’s biggest detractors from returns during the period. Both outperformed in the first half of the period, as COVID-19-related disruptions drove demand for both companies’ enterprise software solutions. The stocks were added to the Portfolio in the third quarter on indications both companies had products that could continue to fuel higher growth.

Throughout the period, the Portfolio’s risk profile was moderated by reducing positions that had experienced meaningful and/or sustained periods of outperformance, while adding to companies with more reasonable growth expectations. At the end of the period, the consumer discretionary and industrials sectors represented the Portfolio’s largest overweight exposures while the technology and heath care sectors were the largest underweights.

For a complete list of holdings, refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

27

Report of the Investment Managers - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

28

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the SP Small Cap Value Portfolio returned 1.90%. The Portfolio underperformed both the Russell 2000 Value Index and the Russell 2500 Index.

What were the market conditions during the reporting period?

The Russell 2000 Value Index (the Index), a proxy for small market-capitalization value stocks, returned 4.63% in calendar-year 2020 (the reporting period), which was highlighted by extreme market conditions. In the first quarter of 2020, the Index sold off sharply with the onset of the COVID-19 pandemic, falling 35.66%. The magnitude and speed of the sell-off was unusual, and both high- and low-quality stocks declined indiscriminately. The second and fourth quarters saw exuberant returns of 18.91% and 33.36%, respectively, buoyed by significant monetary and fiscal policy, the conclusion of the presidential election in November, vaccine optimism, and hopes for a return to normalcy. A cyclically driven recovery in the second half of the period led to small-cap stocks outperforming large-cap stocks. The best-performing sectors in the small-value space during the second half of the period were consumer staples and healthcare, while the energy and financials sectors lagged.

What strategies or holdings affected the Portfolio’s performance?

The Portfolio underperformed the Index during the reporting period. Stock selection in financials contributed to returns, while investments in materials detracted from returns.

Kinsale Capital Group, Inc., which represented 0.3% of the Portfolio’s weight at the end of the period, was a top contributor to returns. The property and casualty insurer benefited from improved operational efficiency in 2019 and early 2020, yielding strong earnings and premium growth despite 90% of its employees working remotely. Earnings reports that exceeded analysts’ estimates and a secondary share offering drove the stock higher in the second half of the period. Goldman Sachs believes Kinsale Capital’s low-cost, technology-enhanced underwriting model, combined with an improving pricing environment for its excess and surplus lines, will continue to support profitable growth over the long term. Saia, Inc. (0.6% Portfolio weight at the end of the period) is a less-than-truckload — LTL — (i.e., small shipments) logistics company that also contributed to returns for the period. The stock struggled in the beginning, reporting softer-than-expected earnings and operating metrics for LTL shipments in the early months of the period. However, better-than-expected quarterly earnings releases and improving shipping-efficiency data for the remainder of the period contributed to the stock’s strong performance. Goldman Sachs believes Saia is well positioned to benefit from the continued shift toward e-commerce and the digitization of consumption.

Redwood Trust, Inc. and MFA Financial, Inc. are mortgage real estate investment trusts (REITs) that detracted from the Portfolio’s returns during the period. The Portfolio did not hold positions in Redwood Trust or MFA Financial at period-end. Before the pandemic began, the Portfolio held overweight positions in residential mortgage credit within the mortgage REIT universe, given the health of consumers and home prices. Over a few trading days in late March 2020, investors sold shares of companies holding non-government-backed securities. The Portfolio eliminated these mortgage REIT positions, wary of their ability to meet high volumes of margin calls.

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

29

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

30

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Stock Index Portfolio returned 18.08%. The Portfolio underperformed the S&P 500 Index.

What were the market conditions during the reporting period?

The COVID-19 pandemic was the major headline during calendar-year 2020 (the reporting period). The pandemic had a significant negative impact on global economies during the first quarter of 2020. Fiscal and monetary stimulus policies led to a steep recovery in US stock prices in the second quarter, along with strong employment numbers as the US economy began to reopen. US equities ended the period in record-high territory, fueled by two vaccines that gained emergency use authorization from the US Food and Drug Administration in the fourth quarter and also by additional monetary stimulus and a resolution of the US presidential election.

What strategies or holdings affected the Portfolio’s performance?

Potential tracking error differences (i.e., the difference between the return of the Portfolio and the return of its benchmark index) — as well as brokerage and other costs and expenses — caused the Portfolio’s return to be slightly lower than the return of its benchmark index, the S&P 500 Index (the Index), during the period.

Information technology — the largest sector within the Portfolio and the Index — was the top sector contributor to the Portfolio’s performance during the period.

Apple Inc. and Amazon.com Inc. were the largest individual stock contributors to the Portfolio’s performance during the period, while Exxon Mobil Corp. and Wells Fargo & Co. were the largest detractors from the Portfolio’s performance.

The Portfolio had some exposure to derivative instruments to help enhance liquidity, but that position did not have a material impact on performance during the period.

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

31

Report of the Investment Manager - As of December 31, 2020 (Unaudited)

For the year ended December 31, 2020, the Value Portfolio Class I shares returned 3.58% and Class II shares returned 3.15%. The Portfolio’s Class I & II shares outperformed the Russell 1000 Value Index and underperformed the S&P 500 Index.

What were the market conditions during the reporting period?

US equities experienced periods of elevated volatility in calendar-year 2020 (the reporting period), but generally posted strong returns. After reaching an all-time high in mid-February 2020, equity markets abruptly reversed course, falling sharply later that month as the rapidly spreading COVID-19 virus and efforts to contain its spread took a toll on the global economy. Stocks rebounded from late March through the end of the period after aggressive monetary policy was implemented by the Federal Reserve, meaningful and significant fiscal stimulus was passed by the US Congress, the November presidential election was resolved, and two COVID-19 vaccines received regulatory approval in December. These factors eclipsed a resurgence of COVID-19 infections that threatened the economy late in the period.

The Russell 1000 Value Index (the Index) returned 2.80% during the period. By sector, performance was mixed as seven sectors in the Index posted positive returns while four declined. The materials, health care, and industrials sectors posted the strongest absolute results, while energy and real estate posted the weakest returns.

What strategies or holdings affected the Portfolio’s performance?

The Portfolio’s positions among semiconductors were the dominant driver of absolute gains over the period, while holdings in the technology hardware storage & peripherals sector contributed to a lesser degree. Meanwhile, positions in the diversified banks and integrated oil & gas sectors hampered absolute gains.

Relative to the Index, the Portfolio’s overweight allocation to internet media & services added the most value. Stock selection among software names was also beneficial, as was an overweight position to systems software. Conversely, stock selection among health care equipment names detracted the most from relative performance. Stock choices in the oil & gas exploration & production sector and an overweight allocation to diversified banks also detracted.

The most notable individual stock contributors to the Portfolio’s performance included multinational technology company Apple, Inc., semiconductors and wireless telecommunications company Qualcomm, Inc., and semiconductor and infrastructure software products firm Broadcom, Inc. With its huge installed base, Apple benefited from rapid growth in service business subscriptions, a key source of recurring revenue. Shares of both Qualcomm and Broadcom rallied sharply during the period as they benefited from the global build-out of fifth-generation (5G) infrastructure, coupled with the introduction of new 5G handset models. Qualcomm shares also advanced after a surprise announcement in July 2020 of a royalty settlement with Huawei Technologies Co. Ltd.

Top detractors for the period included Canadian integrated energy company Suncor Energy, Inc. and diversified banks JPMorgan Chase & Co. and Citigroup, Inc. Suncor Energy’s stock declined as investors reacted negatively to its weakening fundamentals, as the company’s balance sheet added a significant amount of debt. JPMorgan Chase and Citigroup were dragged down along with the overall financials sector. Financials was one of the

For a complete list of holdings, refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

32

Report of the Investment Manager - As of December 31, 2020 (Unaudited) (Continued)

worst-performing sectors during the period, as the contraction in the global economy triggered meaningfully diminished loan growth and payment transaction volumes. In addition, the sector experienced interest rate and credit-risk headwinds.

Presentation of Portfolio Holdings — unaudited

For a complete list of holdings, please refer to the Schedule of Investments section of this report. Holdings reflect only long-term investments.

33

The indexes are unmanaged and include reinvestment of any income or distributions. They do not reflect any fees, expenses or sales charges. Investors cannot invest directly in a market index.

Bloomberg Barclays Government Bond Index is a weighted unmanaged index comprised of securities issued or backed by the US Government, its agencies, and instrumentalities with a remaining maturity of one to 30 years.

Bloomberg Barclays US Aggregate Bond Index is an unmanaged index comprised of more than 5,000 government and corporate bonds.

Bloomberg Barclays US High Yield 1% Issuer Capped Index is an unmanaged index that covers the universe of US dollar denominated, non-convertible, fixed-rate, non-investment-grade debt. Issuers are capped at 1% of the Index. Index holdings must have at least one year to final maturity, at least $150 million par amount outstanding, and be publicly issued with a rating of Ba1 or lower.

Lipper US Government Money Market Index invests principally in financial instruments issued or guaranteed by the US government, its agencies, or its instrumentalities, with dollar-weighted average maturities of less than 90 days.

MSCI EAFE (Morgan Stanley Capital International Europe, Australasia, Far East) Index (GD) is an unmanaged, capitalization-weighted index generally accepted as a benchmark for major overseas markets. The GD version does not reflect the impact of withholding taxes on reinvested dividends

MSCI World Index (GD) - The Morgan Stanley Capital International World Index is an unmanaged capitalization weighted index which includes the equity markets of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Malaysia, Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, United Kingdom, and United States. The GD version does not reflect the impact of withholding taxes on reinvested dividends.

PSF Conservative Balanced Portfolio Blended Index consists of the S&P 500 Index (50%), an unmanaged, market value-weighted index of over 500 stocks generally representative of the broad stock market, Bloomberg Barclays US Aggregate Bond Index (40%), an unmanaged index comprised of more than 5,000 government and corporate bonds, and the FTSE 3-Month T-Bill Index (10%), an unmanaged market value-weighted index of investment grade fixed rate public obligations of the US Treasury with maturities of three months, excluding zero coupon strips.

PSF Flexible Managed Portfolio Blended Index consists of the S&P 500 Index (60%), an unmanaged, market value-weighted index of over 500 stocks generally representative of the broad stock market, Bloomberg Barclays U.S. Aggregate Bond Index (35%), an unmanaged index comprised of more than 5,000 government and corporate bonds, and the FTSE 3-Month T-Bill Index (5%), an unmanaged market value-weighted index of investment grade fixed rate public obligations of the U.S. Treasury with maturities of three months, excluding zero coupon strips.

PSF Natural Resources Portfolio Blended Index consists of the MSCI (Morgan Stanley Capital International) World Energy Index (ND) (60%), an unmanaged capitalization-weighted index that is designed to capture the large and mid-cap segments across twenty-three Developed Markets countries. All securities in the index are classified in the Energy sector. MSCI (Morgan Stanley Capital International) World Materials Energy Index (ND) (40%), an unmanaged capitalization-weighted index that is designed to capture the large and mid-cap segments across twenty-three Developed Markets countries. All securities in the index are classified in the Materials sector.

Russell 1000^® Index is an unmanaged market cap-weighted index that measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market.

Russell 1000 Growth Index is an unmanaged market cap-weighted index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000 Value Index is an unmanaged market cap-weighted index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower forecasted growth values.

Russell 2500 Index is an unmanaged market cap-weighted index that measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index.

Russell Midcap Growth Index is an unmanaged market cap-weighted index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values.

S&P Midcap 400 Index is a widely accepted, unmanaged total return index of 400 domestic stocks measuring the performance of the midsize company segment of the U.S. stock market.

S&P 500 Index is an unmanaged, market value-weighted index of over 500 stocks generally representative of the broad stock market.

S&P SmallCap 600 Index is an unmanaged index representing the aggregate market value of the common equity of 600 small-company stocks.

For Russell Indexes: Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Russell Investment Group.

The S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes are products of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright ^© 2020 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P^® is a registered trademark of S&P Global and Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC.

The PSF Conservative Balanced Portfolio Blended Index and the PSF Flexible Managed Portfolio Blended Index are calculated by PGIM, Inc. and/or its affiliates with permission from S&P Dow Jones Indices LLC and/or its affiliates. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index, including the PSF Conservative Balanced Portfolio Blended Index and the PSF Flexible Managed Portfolio Blended Index, to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index, including the PSF Conservative Balanced Portfolio Blended Index and the PSF Flexible Managed Portfolio Blended Index, or the data included therein.

As a contract owner investing in Portfolios of the Fund through a variable annuity or variable life contract, you incur ongoing costs, including management fees, and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other investment options. This example does not reflect fees and charges under your variable annuity or variable life contract. If contract charges were included, the costs shown below would be higher. Please consult the prospectus for your contract for more information about contract fees and charges.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2020 through December 31, 2020.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the Portfolio expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six-Month Period” to estimate the Portfolio expenses you paid on your account during this period. As noted above, the table does not reflect variable contract fees and charges.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other investment options. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other investment options.

Please note that the expenses shown in the table are meant to highlight your ongoing Portfolio costs only and do not reflect any contract fees and charges, such as sales charges (loads), insurance charges or administrative charges. Therefore the second line of the table is useful to compare ongoing investment option costs only, and will not help you determine the relative total costs of owning different contracts. In addition, if these contract fees and charges were included, your costs would have been higher.

* Portfolio expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 184 days in the six-month period ended December 31, 2020, and divided by the 366 days in the Portfolio’s fiscal year ended December 31, 2020 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Portfolio may invest.

The following abbreviations are used in the Portfolios’ descriptions:

SEE NOTES TO FINANCIAL STATEMENTS

A1