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PRULINK INVESTMENTSReport and statement of the managers for the period 1 January 2010 to 31 December 2010
Nurturing your investments to your advantage.
GENERAL DISCLAIMERS:
The information on the PRUlink Funds is compiled by Prudential Assurance Company Singapore (Pte) Limited (“Prudential Singapore”) and for informational use only.
A Fund Information Booklet in relation to the respective PRUlink Fund may be obtained through Prudential Singapore, its Financial Consultants or representatives. Potential investors should read the Fund Information Booklet before deciding whether to invest in any PRUlink Fund.
Investments are subject to investment risks including the possible loss of the principal invested. The value of the units of the PRUlink Funds may fall as well as rise.
Past performances of the PRUlink Funds and any other economic or market predictions, projections or forecasts, are not necessarily indicative of future or likely performances of the PRUlink Funds, underlying entity and/or the respective fund managers.
For more up-to-date information on unit prices and fund commentaries of all PRUlink Funds, visit our website at www.prudential.com.sg
For more information on your policies regarding the value of your investments and policy details, apply for PRUaccess via our website or call 1800 333 3333.
1
CONTENTS
Page
CEO Letter ...........................................................................................................................................2
About Prudential’s Fund Managers .......................................................................................................3
Table of Fund Performance ...................................................................................................................4
Changes to PruLink Funds 2010 ...........................................................................................................6
Market Review & Outlook ..................................................................................................................11
PruLink Singapore Managed Fund ......................................................................................................15
PruLink Asian Equity Fund ..................................................................................................................16
PruLink Global Equity Fund ................................................................................................................17
PruLink Global Bond Fund ..................................................................................................................18
PruLink Global Managed Fund ...........................................................................................................19
PruLink Global Technology Fund .........................................................................................................20
PruLink Pan European Fund ................................................................................................................21
PruLink Protected Global Titans Fund .................................................................................................22
PruLink Asian Reach Managed Fund ...................................................................................................23
PruLink China-India Fund ...................................................................................................................24
PruLink Emerging Markets Fund .........................................................................................................25
PruLink America Fund ........................................................................................................................26
PruLink International Bond Fund .......................................................................................................27
PruLink Adapt 2015 Fund ..................................................................................................................28
PruLink Adapt 2025 Fund ..................................................................................................................29
PruLink Adapt 2035 Fund ..................................................................................................................30
PruLink Global Basics Fund .................................................................................................................31
PruLink Currency Income Fund ...........................................................................................................32
PruLink Global Property Securities Fund ..............................................................................................33
PruLink Global Leaders Fund ..............................................................................................................34
PruLink Asian Infrastructure Equity Fund ............................................................................................35
PruLink Global Market Navigator Fund ...............................................................................................36
PruLink Asian Income Fund ...............................................................................................................37
PruLink Emerging Market Income Bond Fund .....................................................................................38
PruLink Greater China Fund ...............................................................................................................39
PruLink GEMM Resources Fund ..........................................................................................................40
PruLink Singapore Growth Fund .........................................................................................................41
Schedule of Investments ....................................................................................................................42
Statement of Assets and Liabilities ...................................................................................................103
Capital and Income Account ............................................................................................................108
Notes to the Financial Statements ....................................................................................................113
Auditors’ Report ..............................................................................................................................116
2
CEO Letter
Dear PruLink Policyholder2010 will likely be remembered as the year in which major economic and financial forces fought for supremacy. The result was marked volatility in most financial markets especially emerging market equities. However, the strong performances of the emerging economies may be a good indication that the global economic baton is changing hands and that the power is being shifted to Asia.
The early fragile rebound in the US economic growth slowed over the year, but the economy did not fall into the double-dip recession that many feared. Nevertheless, the US Federal Reserve Board took no chances. Towards the end of the year, it announced a second round of quantitative easing. This move triggered accusations that it was debasing the US dollar (a claim hotly denied) amidst an increasingly acrimonious debate with China over the appropriate level of the Renminbi. There was no resolution to Europe’s sovereign debt crisis. Fears of a Eurozone sovereign bond default were mostly allayed; ongoing weakness in both the Euro and Sterling suggests that the European economies are not out of the woods yet despite some encouraging signs in Germany.
But the emerging economies recorded solid growth, rebuffing fears that they would suffer from the slower developed economies. This growth was not without its problems. Within Asia, many monetary authorities tightened credit not only to offset rising inflationary pressures but also to neutralise the “hot” money inflows resulting from the easier monetary policy of the US. Most Asian equity markets displayed remarkably similar trading patterns over the year as they reacted to the macro issues highlighted above. The main exception was Indonesia where investors focused on domestic issues and its improving credit standing. In contrast, China stocks lagged as investors waited to see if the authorities could slow its overheating economy without stalling growth.
Looking into 2011, we are likely to see another volatile year. There has been rapidly slowing growth in global “free” money; this is money not taken up in financing day-to-day economic activities being “free” to invest. This has occurred despite the second leg of central bank quantitative easing. Unless the situation changes, the risk of some sharp sell-offs this year may increase. However, there are many investment opportunities. Prudential sees value in many asset classes and views sell-offs as potential buying opportunities for both bonds and equities. Valuations in developed equity markets seem potentially attractive.
Today, Prudential remains a key life insurer managing one of Singapore’s largest investment-linked funds with over S$8.4 billion funds managed under PruLink funds (as of 31 December 2010). With the investment expertise of our fund managers and the strength of our funds, there is immense potential. I would like to take this opportunity to thank you for investing with us and we look forward to your continued support.
Yours sincerely
Kevin HolmgrenChief Executive Officer
3
ABOUT PRUDENTIAL’S FUND MANAGERS
Prudential plc is an international retail financial services group with significant operations in Asia, the US and the UK. The group’s investment operations offer expertise in equities, bonds, real estate and venture capital. It is among the world’s largest fund managers in the world, managing a total of over £340.1 billion (S$682.26 billion) as at 31 December 20101.
The PruLink family of funds is managed primarily by the investment arm of the group, which comprises Prudential Asset Management (Singapore) Limited, Prudential Asset Management (Hong Kong) Limited and M&G Investment Management (“M&G”).
M&G is an ultimately wholly owned subsidiary of Prudential plc. It was acquired by Prudential plc in 1999 and is not only one of the oldest and one of the UK’s largest retail mutual fund managers, but also specialized in investment management for more than 70 years. Established in 1931, M&G introduced Britain’s first ever unit trust. M&G’s broad product range includes equity income, growth funds and fixed income. M&G funds are increasingly being offered under the PruLink range of funds.
In Asia, Prudential’s fund management business independently manages assets on behalf of a wide range of retail and institutional investors across the region. Prudential’s fund management business expands across 10 markets in Asia – Hong Kong, Singapore, India, Japan, Taiwan, Malaysia, Korea, Vietnam, China and the United Arab Emirates. Prudential Asset Management (Singapore) Limited is one of the two regional fund management centres of Prudential’s fund management business in Asia and was set up as a company in 1994.
The third party fund managers comprise of Fidelity Fund Management Limited, LaSalle Investment BV, M&G Investment Management Limited, Schroder Investment Management (Singapore), Aberdeen Asset Management Asia Limited, JPMorgan Asset Management (UK) Limited and Allianz Global Investors Limited.
As at 31 December 2010, Prudential has S$104.2 billion1 of funds under management in Asia. In Singapore, Prudential Asset Management (Singapore) Limited has approximately S$68.74 billion2 of funds under management, of which approximately S$52.53 billion are discretionary funds. The PruLink family of funds amounts to S$8.4 billion. Of the 29 PruLink funds, the PruLink Singapore Managed Fund is the largest unitised fund in Singapore, with a total of S$3 billion invested as at 31 December 2010 since its 1992 launch. Prudential Asset Management (Singapore) Limited is one of the fund managers managing a range of funds approved under the Central Provident Fund Investment Scheme.
1 Audited as at 31 December 20102 Contracted Funds Under Management as at 31 December 2010
4
3–Month 6–Month
Fund %
Benchmark%
Fund%
Benchmark%
PruLink Singapore Managed Fund 2.03 2.01 9.00 9.08
PruLink Asian Equity Fund 6.30 3.93 17.32 14.15
PruLink Global Equity Fund 5.63 6.22 11.67 13.97
PruLink Global Bond Fund -4.55 -4.33 -2.18 -2.49
PruLink Global Managed Fund 1.43 1.86 5.94 7.13
PruLink Global Technology Fund 5.57 7.86 13.77 12.72
PruLink Pan European Fund 2.33 1.89 17.51 14.87
PruLink Protected Global Titans Fund -0.54 0.62 -0.14 1.25
PruLink Asian Reach Managed Fund 0.81 -0.20 5.54 3.90
PruLink China–India Fund -0.08 -1.07 7.52 5.45
PruLink Emerging Markets Fund 1.90 4.54 14.28 16.25
PruLink America Fund 9.85 7.87 13.17 13.11
PruLink International Bond Fund -3.84 -4.32 -0.91 -2.58
PruLink Adapt 2015 Fund -0.17 0.18 4.51 4.34
PruLink Adapt 2025 Fund 2.11 2.27 8.13 7.96
PruLink Adapt 2035 Fund 3.54 3.64 10.27 10.15
Prulink Global Basics Fund 11.74 8.34 24.19 18.39
PruLink Currency Income Fund -0.16 0.11 0.31 0.23
PruLink Global Property Securities Fund 3.24 4.35 13.51 15.79
Prulink Global Leaders Fund 6.13 6.15 16.53 14.51
Prulink Asian Infrastructure Equity Fund 1.56 4.12 9.74 14.83
Prulink Global Market Navigator Fund 0.93 NA 3.55 NA
Prulink Asian Income Fund 5.18 4.71 14.80 16.75
Prulink Emerging Market Income Bond Fund -1.31 -2.54 0.33 -8.09
Prulink Greater China Fund 2.76 3.55 12.79 12.53
Prulink GEMM Resources Fund 16.63 13.14 36.10 24.07
Prulink Singapore Growth Fund 2.59 3.47 NA NA
PruLink Singapore Cash Fund* 0.15 0.02 0.30 0.05
TABLE OF FUND PERFORMANCEAs at 31 December 2010
* Important Note: The Cash Fund is recommended to be used as a short term holding fund and not as a form of long term investment as the Cash Fund may not yield returns that are higher than the prevailing CPF interest rates. If in doubt, please consult your Prudential Financial Consultant.
The PruLink Oriental Opportunities Fund is not included in this fund report as it was launched on 4 Oct 2010.
5
1–Year 3–Year 5–Year 10–Year Since Inception
Fund%
Benchmark%
Fund%
Benchmark%
Fund%
Benchmark%
Fund%
Benchmark%
Fund%
Benchmark%
8.27 9.01 1.53 5.34 47.09 53.75 96.61 91.89 264.04 203.39
8.85 9.43 -16.08 -9.86 27.00 41.24 138.20 144.76 123.91 55.63
1.62 2.50 -25.61 -21.98 -20.06 -10.72 -6.76 -2.47 -6.07 6.80
-3.77 -4.05 5.66 6.42 7.30 8.46 42.88 45.38 40.92 46.46
0.98 0.47 -7.98 -6.19 -3.45 1.58 22.02 25.03 21.51 31.75
3.05 1.11 -13.67 -16.30 -12.67 -8.28 NA NA -42.90 -35.26
-6.16 -4.71 -33.07 -31.06 -12.04 -7.65 NA NA -2.17 13.36
-2.88 2.50 2.34 7.70 14.82 13.16 NA NA 15.16 24.70
4.24 4.73 -1.81 1.54 19.50 24.86 NA NA 80.95 85.21
5.76 3.19 -18.18 -20.39 81.66 97.87 NA NA 154.10 207.36
5.51 8.25 -15.66 -16.13 18.01 28.00 NA NA 43.13 65.00
2.29 4.99 -17.62 -18.41 -19.24 -13.72 NA NA -13.05 -8.60
-1.91 -4.27 4.15 4.81 1.83 6.38 NA NA -2.21 3.08
4.59 4.69 -2.91 3.31 14.24 22.80 NA NA 17.92 29.11
4.76 5.45 -9.50 -1.59 7.58 18.16 NA NA 13.84 27.52
4.15 5.36 -14.65 -5.38 1.65 13.64 NA NA 9.16 24.39
12.86 7.04 -11.69 -13.89 NA NA NA NA 9.70 8.26
-1.90 0.48 -18.96 1.79 NA NA NA NA -14.27 2.48
9.44 12.70 -31.39 -19.26 NA NA NA NA -47.85 -37.47
2.08 2.87 NA NA NA NA NA NA -13.32 -3.29
7.53 11.79 NA NA NA NA NA NA 29.57 27.60
-2.11 NA NA NA NA NA NA NA -4.02 NA
6.79 8.05 NA NA NA NA NA NA 38.45 47.59
0.75 -8.44 NA NA NA NA NA NA 5.91 -10.98
2.41 3.33 NA NA NA NA NA NA 3.51 5.08
NA NA NA NA NA NA NA NA 29.29 19.33
NA NA NA NA NA NA NA NA 5.41 8.18
0.71 0.12 3.97 1.28 10.63 7.20 18.41 13.75 33.69 33.10
6
CHANGES TO PRULINK FUNDS 2010
Changes to PruLink Emerging Markets Fund
We restructured the PruLink Emerging Markets Fund with effect from 8 March 2010.
With effect from 8 March 2010, the Investment Manager of the Underlying Fund was changed from Templeton Asset Management Limited to JPMorgan Asset Management (UK) Limited.
With this change, there were the following subsequent changes:
Before 8 March 2010 From 8 March 2010
Underlying Fund Franklin Templeton Investment Funds – Templeton Emerging Markets Fund
JPMorgan Funds – Emerging Markets Equity Fund
Investment Manager Templeton Asset Management Limited
JPMorgan Asset Management (UK) Limited
Benchmark for the Underlying Fund
MSCI Emerging Markets Index MSCI Emerging Markets Total Return Net
Changes to PruLink Global Equity FundWe restructured the PruLink Global Equity Fund with effect from 8 June 2010.
With effect from 8 June 2010, the PruLink Global Equity Fund will now feed 100% into the Aberdeen Global Opportunities Fund.
With this change, there were the following subsequent changes:
Before 8 June 2010 From 8 June 2010
Underlying Fund International Opportunities Funds – World Value Equity
Aberdeen Global Opportunities Fund
Sub-Manager /Investment Manager of the Underlying Fund
M&G Investment Management Limited
Aberdeen Asset Management Asia Limited
Changes to PruLink Global Managed FundWe restructured the PruLink Global Managed Fund with effect from 8 June 2010.
With effect from 8 June 2010, the PruLink Global Managed Fund will now feed 100% into the Schroder Multi-Asset Revolution.
7
With this change, there were the following subsequent changes:
Before 8 June 2010* From 8 June 2010*
Underlying Fund(s) 50% PruLink Global Bond Fund and 50% PruLink Global Equity Fund
Schroder Multi-Asset Revolution
Investment Manager of Underlying Fund(s)
Prudential Asset Management (Singapore) Limited
Schroder Investment Management (Singapore) Ltd
Benchmark for the Underlying Fund
50% MSCI World Index and 50% Citigroup World Government Bond Index
60% MSCI World Index and 40% Citigroup World Government Bond Index
* The Fund started restructuring from 2 June 2010 and with effect from 8 June 2010, the Fund feeds 100% into the Schroder Multi-Asset Revolution.
Changes to PruLink Global Market Navigator FundThe benchmark for the PruLink Global Market Navigator Fund was removed on 24 June 2010 as there is currently no suitable benchmark for this Fund.
Prior to 24 June 2010, the benchmark for the PruLink Global Market Navigator Fund was USD 3-month LIBOR + 3% per annum. The high market volatility experienced in recent years showed that financial market returns are not normally distributed as assumed in almost all financial models, which has underestimated risk. Given that this Fund is largely invested in risky assets, the Investment Manager is of the view that a cash-plus benchmark no longer reflects the PruLink Global Market Navigator Fund’s investment objective, focus and approach over a short period of time.
Changes to PruLink Protected Global Titans FundThe PruLink Protected Global Titans Fund ceased offering the Fund with effect from 13 August 2010. This follows a regional review of all funds on offer from Prudential Asset Management (Singapore), the Investment Manager of the Prudential Unit Trusts – Protected Global Titans Fund (S$) which the PruLink Protected Global Titans Fund feeds 100% into.
With the cessation of offer, we will no longer accept subscription, including switching and top-ups, into the PruLink Protected Global Titans Fund on or after 13 August 2010.
Changes to PruLink Asian Infrastructure Equity FundThe benchmark for the PruLink Asian Infrastructure Equity Fund was changed to the MSCI AC Asia ex-Japan Selected Sectors Index with effect from 1 December 2010. This is a customised benchmark which is derived by combining the MSCI sector indices for Energy, Industrials, Materials, Telecommunication Services & Utilities in the MSCI AC Asia ex-Japan Index. The country coverage for the MSCI AC Asia ex-Japan Selected Sectors Index remains the same as that for MSCI AC Asia ex-Japan Index.
Prior to 1 December 2010, the benchmark for PruLink Asian Infrastructure Equity Fund was MSCI AC Asia ex-Japan Index.
Changes to PruLink International Bond FundThe PruLink International Bond Fund has ceased taking in new CPF monies with effect from 6 December 2010.
This follows the direction from the Underlying Fund, Fidelity Funds – International Bond Fund II, which the PruLink International Bond Fund feeds 100% into as the Underlying Fund is no longer available for further subscription under the CPF Investment Scheme (“CPFIS”).
With the cessation of offer under the CPFIS, we will no longer accept subscription, including switching and top-ups using CPF monies, into the PruLink International Bond Fund with effect from 6 December 2010.
8
Changes to PruLink Singapore Managed FundWith effect from 6 December 2010, the following changes were made to the PruLink Singapore Managed Fund:
1. Change in the investment objective
2. Change in the investment mandate
3. Cessation of future subscription
Before 6 December 2010 From 6 December 2010
Investment objective
The Fund aims to maximize total return in the medium to long term by investing primarily in a portfolio comprising equities and equity-related securities of companies listed or to be listed on the Singapore Stock Exchange, and in a diversified portfolio of debt securities.
The Fund aims to maximise total return in the medium to long term by investing primarily in a portfolio comprising equities and equity-related securities of companies listed or to be listed on the Singapore Stock Exchange, and in a diversified portfolio of debt securities.
The Fund has a strategic asset allocation mix of 70% equities and 30% in fixed income. The Fund may in addition, at the Manager’s absolute discretion, invest up to 20% of its assets in equity and equity-related securities of companies, which are incorporated, listed in or have their area of primary activity in Asia Pacific including Australia and New Zealand excluding Japan, and up to 10% in fixed income/debt securities issued by Asian entities or their subsidiaries that are denominated in US dollars as well as the various Asian currencies.
Investment mandate
70% of the Fund’s assets are invested in equities listed on the Singapore Stock Exchange (“Singapore Equity”).
70% of the Fund’s assets are invested in equity or equity related securities, of which:
(i) Between 50-70% of the Fund’s assets are to be invested in Singapore Equity; and
(ii) Up to 20% of the Fund’s assets can be invested in equity and equity-related securities of companies, which are incorporated, listed in or have their area of primary activity in Asia Pacific including Australia and New Zealand excluding Japan.
30% of the Fund’s assets are invested in local and overseas fixed income instruments.
30% of the Fund’s assets are invested in fixed income/debt securities, of which:
(i) Between 20-30% of the Fund’s assets are invested in local and overseas fixed income instruments.
(ii) Up to 10% of the Fund’s assets can be invested in fixed income/debt securities issued by Asian entities or their subsidiaries that are denominated in US dollars as well as the various Asian currencies.
With effect from 6 December 2010, the PruLink Singapore Managed Fund will no longer accept new subscriptions including switching and top-ups. Only existing regular premium plans and recurrent single premium plans (if applicable) may continue to buy units into this Fund.
9
Changes to PruLink Adapt FundsWe restructured the PruLink Adapt Funds with effect from 14 December 2010.
With effect from 14 December 2010, the fund manager was changed from Prudential Asset Management (Singapore) Ltd to Schroder Investment Management (Singapore) Ltd.
With this change, there were the following subsequent changes:
Before 14 December 2010 From 14 December 2010
Underlying Fund(s)
International Opportunities Funds – Asian Equity
International Opportunities Funds – Pan European
PruLink Singapore Bond Fund
PruLink Singapore Equity Fund
Russell Investment Company Plc – The Continental European Equity Fund
Russell Investment Company Plc – The Global Bond Fund
Russell Investment Company Plc – The Japan Equity Fund
Russell Investment Company Plc – The U.K. Equity Fund
Russell Investment Company Plc – The U.S. Equity Fund
iShares MSCI Emerging Markets Index Fund
Schroder International Selection Fund Global Equity Alpha
Schroder International Selection Fund Global Smaller Companies
Schroder International Selection Fund Emerging Markets
Schroder International Selection Fund Global Emerging Market Opportunities
Schroder International Selection Fund Pacific Equity
Schroder Asian Growth Fund
Schroder International Selection Fund Greater China
Schroder International Selection Fund Japanese Equity
Schroder Singapore Trust
Schroder International Selection Fund Global Bond
Schroder International Selection Fund Global Inflation Linked Bond
Schroder International Selection Fund Asian Bond Absolute Return
Schroder International Selection Fund Emerging Markets Debt Absolute Return
Schroder International Selection Fund EURO Corporate Bond
Schroder Singapore Fixed Income Fund
Schroder International Selection Fund Global Property Securities
SPDR Gold Trust
Fund Manager Prudential Asset Management(Singapore) Ltd
Schroder Investment Management (Singapore) Ltd
Sub-Manager / Investment Adviser of the Underlying Fund
M&G Investment Management LimitedRussell Investments Ireland LimitedBlackRock Fund Advisers
Not applicable
10
Before 1 January 2011 From 1 January 2011
Benchmark for the Underlying Fund
Composite benchmark comprising the MSCI Singapore Free Index, MSCI Japan Index, FTSE World Europe Index, S&P500 Index, MSCI AC Asia ex Japan Index, UOB Singapore Government Bond Index (All), Return on Long Dated Portfolio and Barclays Capital Global Aggregate Index (hedged to S$)
Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite (hedged to S$), JPM EMBI+ Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
Investment Objective of the PruLink Adapt Funds
Before 14 December 2010
The investment objective of the PruLink Adapt Funds is to seek to maximise the Fund’s total value at the end of the investment horizon, subject to limiting the downside risks. Beyond the investment horizon, the objective is to balance the goals of capital stability and providing income. The investment horizon would centre around the applicable year of 2015 / 2025 / 2035.
From 14 December 2010
The investment objective of the PruLink Adapt Funds is to generate capital growth at a controlled risk level consistent with the investment horizon of the portfolio to accumulate assets and provide wealth for investors at maturity. Beyond the investment horizon, which would centre around the applicable year of 2015 / 2025 / 2035, the objective is to maintain capital stability in the portfolio.
11
Market Review & Outlook
Singapore Equities
After a lacklustre first half restrained by sovereign risk issues in Europe and tightening measures in China, the Singapore market fared better in the second half, driven by strong liquidity inflows, impressive economic data and improved global investor sentiment.
The Singapore economy grew by 12.5% in Q4 2010, bringing full year GDP growth to 14.7%1 and a strong rebound from the 1.3% contraction in 2009. The main impetus came from increased exports and public sector spending, together with a marked boost in the tourist related service sectors with the opening of the two integrated gaming resorts. The improving economy has led to positive revisions of earnings and net asset values.
The government is forecasting growth in 2011 to moderate from 4% to 6%, with growth coming mainly from the services sector. Inflation is set to potentially rise to 3.2% this year due to higher wages, capacity constraints and rising asset, commodity and food prices. The bias on the MAS exchange rate is generally towards more tightening.
Singapore issues had a mixed performance in 2010. Healthcare was the best performer, driven mainly by corporate developments within the industry. Industrials were next, with the offshore and marine related stocks in the limelight on stronger order books. Consumer services also outperformed, boosted by hospitality related stocks on the back of the opening of the two integrated resorts whilst higher commodity prices boosted crude palm oil related stocks in the consumer discretionary sector. Real Estate Investment Trusts (“REITS”) performed better than Real Estate as investors switched to the former after the government introduced anti-speculative measures aimed at the residential sector in August.
The case to buy Asian ex-Japan equities may be compelling in an environment of low interest rates and high liquidity levels. The countries have good growth prospects, generally prudent fiscal policies and lower debt risk. However, Singapore’s market valuations, although mostly in line with its historical average, are not compelling versus the region. Near term, the Singapore market outlook is likely to be cautious, given rising costs from inflation, as well as increasing pro-active government measures to curb asset price inflation.
1 Ministry of Trade and Industry, Singapore.
12
Regional Equities Markets
Returns in Singapore dollars for the period under review:
Stock Market Currencies (In SGD) (Against SGD)
MSCI AC Asia Ex-Japan +17.0%MSCI China -6.5% CNY -5.7%MSCI Hong Kong +9.3% HKD -9.6%MSCI India +9.1% INR -5.1%MSCI Indonesia +21.3% IDR -4.6%MSCI Korea +15.5% KRW -5.3%MSCI Malaysia +22.3% MYR +1.6%MSCI Philippines +19.5% PHP +3.3%MSCI Singapore +8.1% – –MSCI Taiwan +8.1% TWD +0.4%MSCI Thailand +38.6% THB +1.6%
Source: Bloomberg
Asian markets ex-China and Japan rallied in the second half, and outperformed the developed nations at end 2010. The MSCI AC Asia Ex-Japan gained 17% (in local currency terms), and with emerging markets in this region leading global growth. Some of the best performing regional markets were Thailand, Malaysia and Indonesia. China lagged most as it sought to curb inflation.
Investor sentiment was muted in the first half of 2010 on concerns that China’s tightening measures could result in a serious slowdown in the world’s second largest economy. The European debt crises surfaced in April followed by mid-year fears of a double-dip US recession. Investors turned optimistic after the US reported encouraging growth numbers and companies posted better-than-expected earnings. Asian markets and currencies enjoyed strong liquidity inflows, thanks to quantitative easing and fiscal measures worldwide. The anticipation of further asset purchases by the US Fed fuelled the rally, but year-end headwinds came in the form of escalating North-South Korea tension, Ireland’s debt crisis and further monetary tightening from China.
On the economic front, growth across the region was robust, reflecting a full recovery from a dismal 2009. Growth was generally driven by a pick-up in exports and domestic consumption, alongside resumption in investment spending and inventory rebuilding. Although most countries lost momentum in the second half, others such as Singapore reported its strongest ever quarterly growth of 12.5%2 in the fourth quarter. China’s full year GDP was a reported 10.3%3, confirming it remains one of the world’s fastest growing economies. The region’s economic growth should continue to benefit from growing domestic demand and regional trade, although managing inflation is increasingly the main priority. India, Indonesia, and Thailand were among Asia’s top performing 2010 markets, all being backed by strong domestic economies. There seem few grounds for believing that a similar trend will not continue into 2011; with Thailand still offering potentially good value. It is likely that China, long in the cold, may swing back into favour. The valuation for the China market remains attractive, underpinned by continued economic growth and corporate earnings. However, the authorities cannot afford policy errors managing inflation. India is one of the markets that had run ahead of fundamentals but has pulled back. There are a new set of challenges in India, but along with Indonesia, it potentially offers some of the best long term opportunities for investors.
2 Ministry of Trade and Industry, Singapore3 National Bureau of Statistics of China.
13
Global Equities
Returns in Singapore dollars for the period under review:
Stock Market Currencies (In SGD) (Against SGD)MSCI World +0.9%MSCI North America +3.8% USD -9.3%MSCI UK -4.3% GBP -14.0%MSCI Europe ex-UK -9.7% EUR +7.2%MSCI Japan +2.4% JPY +3.8%MSCI AC Far East ex-Japan +6.6% – –MSCI Australia +0.5% AUD +3.3%MSCI New Zealand -5.8% NZD -2.4%
Source: Bloomberg
Against a backdrop of continued global economic recovery, benign inflation and strong liquidity, various macro developments resulted in uncertainty and volatility for equity markets worldwide in 2010. Global equities started the year on an encouraging note underpinned by favourable economic data. However, investors’ worries about a double dip recession in the US on renewed housing sector weakness and expiration of various stimulus measures gained momentum as the year progressed. In Europe, there were grave concerns that the fiscal woes of Greece could ignite a contagion throughout Europe. The downgrading of sovereign credit ratings of Greece, Portugal and Spain by rating agency Standard & Poor’s (S&P) highlighted the extent of the problems in the region. Tighter US bank regulation proposals and China’s earlier-than-expected move to tighten monetary policy too weighed heavily on equities. Asia, while fundamentally stronger, was not immune to the market weakness in the first half of the year.
The second half of 2010 saw markets higher, driven by improving economic data and expectations that the US Federal Reserve would re-start its ‘quantitative easing’ programme. However, while concerns of a double dip recession in the US showed signs of receding, fiscal challenges continued to trouble the peripheral European Union economies. In contrast to the ongoing fiscal and growth concerns evident in the developed world, emerging countries’ growth remains robust, reflected by rising inflation and continued tightening of monetary policies. In Singapore dollar terms, developed markets lagged in 2010. The Asian markets ex-Japan gained 6.6% against a 0.9% increase in the MSCI World Index. In contrast, European countries dealing with sovereign debt issues were some of the worst performers.
We enter 2011 expecting a cautious US recovery and moderate global economic growth. Thanks to stronger domestic demand, growth in emerging countries will potentially outpace that of developed nations. The environment for global equities is favourable backed by accommodative liquidity conditions, low interest rates, and a generally profitable and cash-rich corporate sector. Asian and emerging markets are likely to remain outperformers; many have good prospects backed by strong growth economies, generally prudent fiscal policies and lower debt risk. The unresolved European sovereign fiscal crisis, fears of China over-tightening given inflationary pressures and geopolitical uncertainty may bring volatility, but these should be viewed as temporary pullbacks that may provide buying opportunities for the longer term investor.
14
Global Fixed Income
Returns in Singapore dollars for the period under review:
Stock Market Currencies (In SGD) (Against SGD)
Citigroup World Government Bond Index -3.9%Citigroup US Government Bond Index -3.3% USD -9.3% Citigroup EMU Government Bond Index -13.9% EUR +7.2%Citigroup Japan Government Bond Index +7.3% JPY +3.8%
Source: Bloomberg
2010 proved to be an eventful year for bonds, and in particular government bonds. Europe’s sovereign debt crises, worries over a double dip recession in the US and the pursuit of easier monetary policy amongst the G3 countries were key influences in the credit markets.
At the start of the year, optimism over the global recovery caused G7 bond yields to be pushed higher in anticipation of monetary policy tightening. In the US, encouraging economic data and buoyant corporate results led to a sell-off in US Treasuries. Subsequently, financial markets experienced an escalation in risk aversion, triggered by Europe’s sovereign debt crisis. European bond prices were significantly affected with Spain, Turkey, Portugal, Italy, and Ireland receiving considerable rating downgrades during 2010. The US housing starts refused to recover, raising concerns over the US economic recovery. The fight to safety led to a surge in demand for Treasuries in the second to third quarter – with yields close to two-year lows. With policy rates near zero, the US and Japan resorted to further quantitative easing to prop up their slowing economies, thereby capping rises in bond yields. Treasuries were again sold off in the last few months post the massive quantitative easing November announcement, and after the US data suggested stronger-than-expected economic growth and easing deflation risk. In contrast, Japanese government bonds gained in 2010, underpinned by plans to reduce fiscal deficit and to restrict bond sales.
The corporate bond space fared better in 2010 as investors sought to enhance investment returns amidst the low interest rate environment. In addition, strengthened corporate fundamentals as evidenced by declining leverage, increased cash on balance sheets, and lower default rates underpinned the corporate bond markets.
Going forward, the credit markets will have to contend with European economies facing years of public-sector austerity while the US props itself up on quantitative easing. A rising trend in yields as the global economic recovery continues may likely result in poor returns from government bonds. Corporate debt potentially remains far more attractive with spreads and absolute yields offering potentially better relative value and superior total return opportunities.
The above information is provided by Prudential Asset Management (Singapore) Ltd.
15
PRULINK FUNDSReport and Statements of the Managers for the period from 1 January 2010 to 31 December 2010
PruLink Singapore Managed Fund
FUND OBjECTIvE
The PruLink Singapore Managed Fund (the “Fund”) aims to maximise total return in the medium to long-term by investing primarily in a portfolio comprising equities and equity-related securities of companies listed or to be listed on the Singapore Stock Exchange, and in a diversified portfolio of debt securities.
The Fund has a strategic asset allocation mix of 70% equities and 30% in fixed income. The Fund may in addition, at the Manager’s absolute discretion, invest up to 20% of its assets in equity and equity related securities of companies, which are incorporated, listed in or have their area of primary activity in Asia Pacific including Australia and New Zealand, excluding Japan, and up to 10% in fixed income/ debt securities issued by Asian entities or their subsidiaries that are denominated in US dollars as well as various Asian currencies.
Fund Details
PruLink Singapore Managed Fund
Launch Date 24 Sep 1992
Bid Price (as at 31 Dec 2010) $3.458Offer Price (as at 31 Dec 2010) $3.640
Risk ClassificationNarrowly Focused – Medium to High Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)PruLink Singapore Managed Fund 8.27%70% MSCI Singapore Free Index + 30% UOB Singapore Government Bond Index (All) 9.01%
Net Investment Return (since inception of the fund)PruLink Singapore Managed Fund 264.04%70% MSCI Singapore Free Index + 30% UOB Singapore Government Bond Index (All) 203.39%
60
100
140
180
220
260
300
340
380
420
Nov
-92
Nov
-94
Nov
-96
Nov
-98
Nov
-00
Nov
-02
Nov
-04
Nov
-06
Nov
-08
Nov
-10
Price IndexedPrulink Singapore Managed FundBenchmark
The above information on the PruLink Singapore Managed Fund is provided by Prudential Asset Management (Singapore) Ltd.
16
PruLink Asian Equity Fund
FUND OBjECTIvE
The PruLink Asian Equity Fund (the “Fund”) aims to maximise long-term total return by investing in equity and equity-related securities of companies, which are incorporated, or have their primary activity, in Asia ex-Japan. The Asia ex-Japan region includes but is not limited to the following countries: Korea, Taiwan, Hong Kong, Philippines, Thailand, Malaysia, Singapore, Indonesia, People’s Republic of China, India and Pakistan. The Fund may also invest in depository receipts [including American Depository Receipts (ADRs) and Global Depository Receipts (GDRs)], debt securities convertible into common shares, preference shares and warrants.
Fund Details
PruLink Asian Equity Fund
Launch Date 1 Oct 1995
Bid Price (as at 31 Dec 2010) $2.127
Offer Price (as at 31 Dec 2010) $2.239
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Asian Equity Fund 8.85%
MSCI AC Asia Ex-Japan Index 9.43%
Net Investment Return (since inception of the fund)
PruLink Asian Equity Fund 123.91%
MSCI AC Asia Ex-Japan Index 55.63%
25
50
75
100
125
150
175
200
225
250
275
300
325
350
Nov
-95
Nov
-96
Nov
-97
Nov
-98
Nov
-99
Nov
-00
Nov
-01
Nov
-02
Nov
-03
Nov
-04
Nov
-05
Nov
-06
Nov
-07
Nov
-08
Nov
-09
Nov
-10
Price Indexed Benchmark
Prulink Asian Equity Fund
The above information on the PruLink Asian Equity Fund is provided by Prudential Asset Management (Singapore) Ltd.
17
PruLink Global Equity Fund
FUND OBjECTIvE
The PruLink Global Equity Fund (the “Fund”) aims to provide long-term return from an internationally diversified portfolio of securities through investing all or substantially all of its assets in the Aberdeen Global Opportunies Fund (“Underlying Fund”).
Fund Details
PruLink Global Equity Fund
Launch Date 5 Oct 1998
Bid Price (as at 31 Dec 2010) $0.890
Offer Price (as at 31 Dec 2010) $0.937
Risk Classification
Broadly Diversified – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Global Equity Fund 1.62%
MSCI World (Total Return Net) Index 2.50%
Net Investment Return (since inception of the fund)
PruLink Global Equity Fund -6.07%
MSCI World (Total Return Net) Index 6.80%
40
50
60
70
80
90
100
110
120
130
140
150
Feb-
99
Feb-
00
Feb-
01
Feb-
02
Feb-
03
Feb-
04
Feb-
05
Feb-
06
Feb-
07
Feb-
08
Feb-
09
Feb-
10
Aug
-10
Price Indexed
Prulink Global Equity FundBenchmark
The above information on the PruLink Global Equity Fund is provided by Aberdeen Asset Management Asia Limited.
18
PruLink Global Bond Fund
FUND OBjECTIvE
The PruLink Global Bond Fund (the “Fund”) aims to maximise total return through investment in a diversified portfolio of debt securities denominated in any currency. While the manager has power to hedge currency risk, the Fund will seek to invest primarily in securities so as to give exposure to major developed market currencies.
Fund Details
PruLink Global Bond Fund
Launch Date 5 Oct 1998
Bid Price (as at 31 Dec 2010) $1.339
Offer Price (as at 31 Dec 2010) $1.409
Risk Classification
Broadly Diversified – Low to Medium Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Global Bond Fund -3.77%
Citigroup World Government Bond Index All Maturities -4.05%
Net Investment Return (since inception of the fund)
PruLink Global Bond Fund 40.92%
Citigroup World Government Bond Index All Maturities 46.46%
80
90
100
110
120
130
140
150
160
170
180
Feb-
99
Feb-
00
Feb-
01
Feb-
02
Feb-
03
Feb-
04
Feb-
05
Feb-
06
Feb-
07
Feb-
08
Feb-
09
Feb-
10
Aug
-10
Price Indexed
Prulink Global Bond FundBenchmark
The above information on the PruLink Global Bond Fund is provided by Prudential Asset Management (Singapore) Ltd.
19
PruLink Global Managed Fund
FUND OBjECTIvE
The PruLink Global Managed Fund (the “Fund”) aims to achieve long-term capital appreciation through investment directly or indirectly in quoted equities, bonds and other fixed income securities in global markets. The Fund will feed into the Schroder Multi-Asset Revolution (“Underlying Fund”), which will invest in multiple asset classes and will be comprised of an activity managed basket of equities, fixed income, property and commodities related securities.
Fund Details
PruLink Global Managed Fund
Launch Date 5 Oct 1998
Bid Price (as at 31 Dec 2010) $1.153Offer Price (as at 31 Dec 2010) $1.214
Risk ClassificationBroadly Diversified – Medium to High Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)PruLink Global Managed Bond Fund 0.98%60% MSCI World Free Index + 40% Citigroup World Government Bond* 0.47%
Net Investment Return (since inception of the fund)PruLink Global Managed Bond Fund 21.51%60% MSCI World Free Index + 40% Citigroup World Government Bond* 31.75%
* With effect from 8 June 2010, the benchmark has changed from 50% MSCI World Index and 50% Citigroup World Government Bond to 60% MSCI World Free Index and 40% Citigroup World Government Bond.
Please note that the static benchmark is provided as a reference only. The Fund is managed with a dynamic approach to asset allocation and is not managed against a benchmark.
70
90
80
100
110
120
130
140
150
Feb-9
9
Jan-0
0
Aug-1
0
Price Indexed
Prulink Global Managed FundBenchmark
Dec
-02
Nov-
04
Oct
-06
Sep-0
8
The above information on the PruLink Global Managed Fund is provided by Schroder Investment Management (Singapore) Limited.
20
PruLink Global Technology Fund
FUND OBjECTIvE
The investment objective of the PruLink Global Technology Fund (the “Fund”) is to maximise long-term returns through investment in equities and equity-related securities of companies around the world with innovative products, processes or services. These investments include, but are not restricted to, those companies whose provision or use of technology gives them a strategic advantage in the market.
Fund Details
PruLink Global Technology Fund
Launch Date 1 Apr 2001
Bid Price (as at 31 Dec 2010) $0.542
Offer Price (as at 31 Dec 2010) $0.571
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Global Technology Fund 3.05%
MSCI AC World IT Index 1.11%
Net Investment Return (since inception of the fund)
PruLink Global Technology Fund -42.90%
MSCI AC World IT Index -35.26%
20
40
60
80
100
120
May
-01
Mar
-02
Jan-
03
Nov
-03
Sep-
04
Jul-0
5
May
-06
Mar
-07
Jan-
08
Nov
-08
Sep-
09
Jul-1
0
Price Indexed
Prulink Global Technology FundBenchmark
The above information on the PruLink Global Technology Fund is provided by Prudential Asset Management (Singapore) Ltd.
21
PruLink Pan European Fund
FUND OBjECTIvE
The investment objective of the PruLink Pan European Fund (the “Fund”) is to maximise long-term total return by investing in equity and equity-related securities, which are incorporated, or have their area of primary activity, in Europe (including United Kingdom). The Fund may also invest in depository receipts [including American Depository Receipts (ADRs) and Global Depository Receipts (GDRS)], debt securities convertible into common shares, preference shares and warrants.
Fund Details
PruLink Pan European Fund
Launch Date 1 Apr 2001
Bid Price (as at 31 Dec 2010) $0.929
Offer Price (as at 31 Dec 2010) $0.978
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Pan European Fund -6.16%
FTSE World Europe (including UK) Index -4.71%
Net Investment Return (since inception of the fund)
PruLink Pan European Fund -2.17%
FTSE World Europe (including UK) Index 13.36%
40
60
80
100
120
140
160
180
200
Apr
-01
Apr
-02
Apr
-03
Apr
-04
Apr
-05
Apr
-06
Apr
-07
Apr
-08
Apr
-09
Apr
-10
Oct
-10
Price IndexedPrulink Pan European FundBenchmark
The above information on the PruLink Pan European Fund is provided by Prudential Asset Management (Singapore) Ltd.
22
PruLink Protected Global Titans Fund
FUND OBjECTIvE
The investment objective of the PruLink Protected Global Titans Fund (the “Fund”) is to achieve long-term capital growth by gaining exposure to top global multinational companies through the Dow Jones Global Titans 50 IndexSM while at the same time providing protection against the bid price of the Fund falling below the floor level of 95% of its bid price as at the start of each floor period, such period to be more than 12 months but less than 13 months.
Fund Details
Protected Global Titans Fund
Launch Date 16 Jan 2002
Bid Price (as at 31 Dec 2010) $1.152
Offer Price (as at 31 Dec 2010) $1.212
Risk Classification
Broadly Diversified – Low to Medium Risk
Net Investment Return (for period under review – 1 january 2010 to 31 December 2010)
PruLink Protected Global Titans Fund -2.88%
CPF – Ordinary Account Interest Rate 2.50%
Net Investment Return (since inception of the fund)
PruLink Protected Global Titans Fund 15.16%
CPF – Ordinary Account Interest Rate 24.70%
90
95
100
105
110
115
120
125
130
Jan-
02
Aug
-02
Mar
-03
Oct
-03
May
-04
Dec
-04
Jul-0
5
Feb-
06
Sep-
06
Apr
-07
Nov
-07
Jun-
08
Jan-
09
Aug
-09
Mar
-10
Oct
-10
Price IndexedPrulink Protected Global Titans FundBenchmark
The above information on the PruLink Protected Global Titans Fund is provided by Prudential Asset Management (Singapore) Ltd.
23
PruLink Asian Reach Managed Fund
FUND OBjECTIvE
The PruLink Asia Reach Managed Fund (the “Fund”) aims to maximise total return in the medium to long-term by investing in a portfolio comprising equities of companies in the Asia ex-Japan region, and quality corporate bonds and other fixed income securities issued in the United States market.
Fund Details
PruLink Asian Reach Managed Fund
Launch Date 13 Jan 2003
Bid Price (as at 31 Dec 2010) $1.719
Offer Price (as at 31 Dec 2010) $1.809
Risk Classification Narrowly Focused – Medium to High Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Asian Reach Managed Fund 4.24%
50% MSCI AC Asia ex Japan Index, 30% The BofA Merrill Lynch U.S. Corporates, 4.73% A2 Rated and above Index, 20% The BofA Merrill Lynch U.S. Corporates, BBB3-A3 Rated Index
Net Investment Return (since inception of the fund)
PruLink Asian Reach Managed Fund 80.95%
50% MSCI AC Asia ex Japan Index, 30% The BofA Merrill Lynch U.S. Corporates, 85.21% A2 Rated and above Index, 20% The BofA Merrill Lynch U.S. Corporates, BBB3-A3 Rated Index
90
100
110
120
130
140
150
160
170
180
190
200
Feb-
03
Feb-
04
Feb-
05
Feb-
06
Feb-
07
Feb-
08
Feb-
09
Feb-
10
Oct
-10
Price Indexed Benchmark
Prulink Asian Reach Managed Fund
The above information on the PruLink Asian Reach Managed Fund is provided by Prudential Asset Management (Singapore) Ltd.
24
PruLink China-India Fund
FUND OBjECTIvE
PruLink China-India Fund (the “Fund”) aims to maximise long-term total return by investing primarily in equity and equity-related instruments of corporations, which are incorporated in, or listed in, or operating principally from, or carrying on significant business in, or derive substantial revenue from, or whose subsidiaries, related or associated corporations derive substantial revenue from, the People’s Republic of China (PRC) and the Republic of India (India).
Fund Details
PruLink China-India Fund
Launch Date 21 Jun 2004
Bid Price (as at 31 Dec 2010) $2.414
Offer Price (as at 31 Dec 2010) $2.541
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink China-India Fund 5.76%
50% MSCI China Index and 50% MSCI India Index 3.19%
Net Investment Return (since inception of the fund)
PruLink China-India Fund 154.10%
50% MSCI China Index and 50% MSCI India Index 207.36%
90
130
170
210
250
290
330
370
410430
Price Indexed
PruLink China-India Fund
Benchmark
Au
g-0
4
Feb
-05
Au
g-0
5
Feb
-06
Au
g-0
6
Feb
-07
Au
g-0
7
Feb
-08
Au
g-0
8
Feb
-09
Au
g-0
9
Feb-1
0
Au
g-1
0O
ct-1
0
The above information on the PruLink China-India Fund is provided by Prudential Asset Management (Singapore) Ltd.
25
PruLink Emerging Markets Fund
FUND OBjECTIvE
The investment objective of the PruLink Emerging Markets Fund (the “Fund”) is to provide long-term capital growth by investing primarily in emerging markets companies.
Fund Details
PruLink Emerging Markets Fund
Launch Date 19 May 2005
Bid Price (as at 31 Dec 2010) $1.360
Offer Price (as at 31 Dec 2010) $1.431
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Emerging Markets Fund 5.51%
MSCI Emerging Markets Total Return Net 8.25%
Net Investment Return (since inception of the fund)
PruLink Emerging Markets Fund 43.13%
MSCI Emerging Markets Total Return Net 65.00%
PruLink Emerging Markets Fund
Benchmark
May
-05
May
-06
May
-07
May
-08
May
-09
May
-10
200
225
125
150
175
100
75
50
Price Indexed
The above information on the PruLink Emerging Markets Fund is provided by JPMorgan Asset Management (UK) Limited.
26
PruLink America Fund
FUND OBjECTIvE
The investment objective of the PruLink America Fund (the “Fund”) is to invest principally in US equity securities. Currently, the Fund aims to produce capital growth by investing in a diversified portfolio of primarily US companies.
Fund Details
PruLink America Fund
Launch Date 19 Apr 2005
Bid Price (as at 31 Dec 2010) $0.826
Offer Price (as at 31 Dec 2010) $0.869
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink America Fund 2.29%
Standard & Poor’s 500 Index 4.99%
Net Investment Return (since inception of the fund)
PruLink America Fund -13.05%
Standard & Poor’s 500 Index -8.60%
40
60
80
100
120
140
Price Indexed
PruLink America Fund
Benchmark
May
-05
May
-08
May
-07
May
-06
May
-09
May
-10
The above information on the PruLink America Fund is provided by FIL Fund Management Limited.
27
PruLink International Bond Fund
FUND OBjECTIvE
The investment objective of the PruLink International Bond Fund (the “Fund”) is to aim to invest in international markets to maiximize performance measured in US dollars.
Fund Details
PruLink International Bond Fund
Launch Date 19 Apr 2005
Bid Price (as at 31 Dec 2010) $0.929
Offer Price (as at 31 Dec 2010) $0.978
Risk Classification
Broadly Diversified – Low to Medium Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink International Bond Fund -1.91%
Barclays Capital Global Aggregate G5 ex MBS Index -4.27%
Net Investment Return (since inception of the fund)
PruLink International Bond Fund -2.12%
Barclays Capital Global Aggregate G5 ex MBS Index 3.08%
80
90
100
110
120
May
-05
May
-06
May
-07
May
-08
May
-09
May
-10
Price IndexedPruLink International Bond FundBenchmark
The above information on the PruLink International Bond Fund is provided by FIL Fund Management Limited.
28
PruLink Adapt 2015 Fund
FUND OBjECTIvE
The investment objective of the PruLink Adapt 2015 Fund (the “Fund”) is to generate capital growth at a controlled risk level consistent with the investment horizon of the portfolio to accumulate assets and provide wealth for investors at maturity. Beyond the investment horizon, which would centre around 2015, the objective is to maintain capital stability in the portfolio.
Fund Details
PruLink Adapt 2015 Fund
Launch Date 19 Apr 2005
Bid Price (as at 31 Dec 2010) $1.120Offer Price (as at 31 Dec 2010) $1.179
Risk ClassificationBroadly Diversified – Medium to High Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)PruLink Adapt 2015 Fund 4.59%Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, 4.69% MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite Index (hedged to S$), JPM EMBI+ Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
Net Investment Return (since inception of the fund)PruLink Adapt 2015 Fund 17.92%Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, 29.11% MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite Index (hedged to S$), JPM EMBI+Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
60
70
80
90
100
110
120
130
140
May
-05
Nov
-05
May
-06
Nov
-06
May
-07
Nov
-07
May
-08
Nov
-08
May
-09
Nov
-09
May
-10
Nov
-10
Price Indexed Benchmark
Prulink Adapt 2015 Fund
The above information on the PruLink Adapt 2015 Fund is provided by Prudential Asset Management (Singapore) Ltd and Schroder Investment Management (Singapore) Limited.
29
PruLink Adapt 2025 Fund
FUND OBjECTIvE
The investment objective of the PruLink Adapt 2025 Fund (the “Fund”) is to generate capital growth at a controlled risk level consistent with the investment horizon of the portfolio to accumulate assets and provide wealth for investors at maturity. Beyond the investment horizon, which would centre around 2025, the objective is to maintain capital stability in the portfolio.
Fund Details
PruLink Adapt 2025 Fund
Launch Date 19 Apr 2005
Bid Price (as at 31 Dec 2010) $1.081Offer Price (as at 31 Dec 2010) $1.138
Risk ClassificationBroadly Diversified – Medium to High Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)PruLink Adapt 2025 Fund 4.76%Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, 5.45% MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite Index (hedged to S$), JPM EMBI+ Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
Net Investment Return (since inception of the fund)PruLink Adapt 2025 Fund 13.84%Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, 27.52% MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite Index (hedged to S$), JPM EMBI+Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
60
70
80
90
100
110
120
130
140
May
-05
Nov
-05
May
-06
Nov
-06
May
-07
Nov
-07
May
-08
Nov
-08
May
-09
Nov
-09
May
-10
Nov
-10
Price Indexed Benchmark
Prulink Adapt 2025 Fund
The above information on the PruLink Adapt 2025 Fund is provided by Prudential Asset Management (Singapore) Ltd and Schroder Investment Management (Singapore) Limited.
30
PruLink Adapt 2035 Fund
FUND OBjECTIvE
The investment objective of the PruLink Adapt 2035 Fund (the “Fund”) is to generate capital growth at a controlled risk level consistent with the investment horizon of the portfolio to accumulate assets and provide wealth for investors at maturity. Beyond the investment horizon, which would centre around 2035, the objective is to maintain capital stability in the portfolio.
Fund Details
PruLink Adapt 2035 Fund
Launch Date 19 Apr 2005
Bid Price (as at 31 Dec 2010) $1.037Offer Price (as at 31 Dec 2010) $1.092
Risk ClassificationBroadly Diversified – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Adapt 2035 Fund 4.15%
Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, 5.36% MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite Index (hedged to S$), JPM EMBI+Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
Net Investment Return (since inception of the fund)PruLink Adapt 2035 Fund 9.16%
Composite benchmark comprising the MSCI Singapore Free Index, MSCI World, 24.39% MSCI AC Asia ex-Japan Index, MSCI Emerging Market, UOB Singapore Government Bond Index (All), Barclays Capital Global Aggregate Index (hedged to S$), JACI Composite Index (hedged to S$), JPM EMBI+Composite Index, FTSE NAREIT Developed RE Index, Gold Bullion Spot (hedged to S$), 3-month SIBOR
60
70
80
90
100
110
120
130
140
150
May
-05
Nov
-05
May
-06
Nov
-06
May
-07
Nov
-07
May
-08
Nov
-08
May
-09
Nov
-09
May
-10
Nov
-10
Price Indexed Benchmark
Prulink Adapt 2035 Fund
The above information on the PruLink Adapt 2035 Fund is provided by Prudential Asset Management (Singapore) Ltd and Schroder Investment Management (Singapore) Limited.
31
PruLink Global Basics Fund
FUND OBjECTIvE
The investment objective of the PruLink Global Basics Fund (the “Fund”) is to invest wholly or mainly in companies operating in basic industries (“primary” and “secondary” industries) and also in companies that service these industries. The Fund may also invest in other global equities. The sole aim of the PruLink Global Basics Fund is long-term capital growth.
Fund Details
PruLink Global Basics Fund
Launch Date 18 Apr 2006
Bid Price (as at 31 Dec 2010) $1.042
Offer Price (as at 31 Dec 2010) $1.097
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Global Basics Fund 12.86%
FTSE Global Basics Composite Index 7.04%
Net Investment Return (since inception of the fund)
PruLink Global Basics Fund 9.70%
FTSE Global Basics Composite Index 8.26%
40
50
60
70
80
90
100
110
120
130
140
150
May
-06
Nov
-06
May
-07
Nov
-07
May
-08
Nov
-08
May
-09
Nov
-09
May
-10
Nov
-10
Price Indexed
Prulink Global Basics FundBenchmark
The above information on the PruLink Global Basics Fund is provided by Prudential Asset Management (Singapore) Ltd.
32
PruLink Currency Income Fund
FUND OBjECTIvE
The investment objective of the PruLink Currency Income Fund (the “Fund”) is to seek to provide regular income payouts, capital growth and optimum risk-adjusted total return by investing in cash, cash-equivalent, high quality bonds and other fixed income securities rated BBB – (BBB Minus) and above by Standard & Poor’s (or equivalent ratings of other credit rating agencies), and entering into derivative transactions linking to indices which employ pre-defined multi-currency interest arbitrage strategies.
Fund Details
PruLink Currency Income Fund
Launch Date 23 Jan 2007
Bid Price (as at 31 Dec 2010) $0.664
Offer Price (as at 31 Dec 2010) $0.699
Risk Classification
Medium to High Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Currency Income Fund -1.90%
12 Month S$ Fixed Deposit Rate p.a. 0.48%
Net Investment Return (since inception of the fund)
PruLink Currency Income Fund -14.27%
12 Month S$ Fixed Deposit Rate p.a. 2.48%
60
70
80
90
100
110
120
Mar
-07
Jul-0
7
Nov
-07
Mar
-08
Jul-0
8
Nov
-08
Mar
-09
Jul-0
9
Nov
-09
Mar
-10
Jul-1
0
Price Indexed Benchmark
PruLink Currency Income Fund
The above information on the PruLink Currency Income Fund is provided by Prudential Asset Management (Singapore) Ltd.
33
PruLink Global Property Securities Fund
FUND OBjECTIvE
The investment objective of the PruLink Global Property Securities Fund (the “Fund”) is to achieve long-term growth through capital appreciation of the underlying equity portfolio. It will achieve this objective by principally investing worldwide across regions, countries and sectors in shares of companies active in the real estate business (property companies).
Fund Details
PruLink Global Property Securities Fund
Launch Date 26 Mar 2007
Bid Price (as at 31 Dec 2010) $0.495
Offer Price (as at 31 Dec 2010) $0.522
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Global Property Securities Fund 9.44%
UBS Warburg Global Real Estate Investors Index 12.70%
Net Investment Return (since inception of the fund)
PruLink Global Property Securities Fund -47.85%
UBS Warburg Global Real Estate Investors Index -37.47%
May-
07
Dec-
07
Au
g-0
8
Ap
r-0
9
Dec-
09
Au
g-1
0
100
80
60
40
20
Price Indexed
PruLink Global Property Securities FundBenchmark
The above information on the PruLink Global Property Securities Fund is provided by LaSalle Investment Management Securities BV.
34
PruLink Global Leaders Fund
FUND OBjECTIvE
The investment objective of the PruLink Global Leaders Fund (the “Fund”) is to maximise long-term total return (the combination of income and growth of capital) by investing in a wide range of global equities that the fund manager considers to be leading in their field.
Fund Details
PruLink Global Leaders Fund
Launch Date 4 Jun 2008
Bid Price (as at 31 Dec 2010) $0.823
Offer Price (as at 31 Dec 2010) $0.867
Risk Classification
Broadly Diversified – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Global Leaders Fund 2.08%
FTSE World Index 2.87%
Net Investment Return (since inception of the fund)
PruLink Global Leaders Fund -13.32%
FTSE World Index -3.29%
0
20
40
60
80
100
120
Jul-0
8
Nov
-08
Mar
-09
Jul-0
9
Nov
-09
Mar
-10
Jul-1
0
Nov
-10
Dec
-10
Price IndexedPrulink Global Leaders FundBenchmark
The above information on the PruLink Global Leaders Fund is provided by Prudential Asset Management (Singapore) Ltd.
35
PruLink Asian Infrastructure Equity Fund
FUND OBjECTIvE
The PruLink Asian Infrastructure Equity Fund (the “Fund”) aims to maximise long-term capital appreciation by investing primarily in equity and equity-related securities of corporations deriving substantial revenue from, or whose subsidiaries, related or associated corporations are engaged in, infrastructure or related businesses and are incorporated in, or listed in, or operating principally from the Asia ex-Japan region.
Fund Details
PruLink Asian Infrastructure Equity Fund
Launch Date 4 Aug 2008
Bid Price (as at 31 Dec 2010) $1.231
Offer Price (as at 31 Dec 2010) $1.296
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Asian Infrastructure Equity Fund 7.53%
MSCI AC Asia ex-Japan Selected Sectors Index 11.79%
Net Investment Return (since inception of the fund)
PruLink Asian Infrastructure Equity Fund 29.57%
MSCI AC Asia ex-Japan Selected Sectors Index 27.60%
40
50
60
70
80
90
100
110
120
130
140
Aug
-08
Oct
-08
Dec
-08
Feb-
09
Apr
-09
Jun-
09
Aug
-09
Oct
-09
Dec
-09
Feb-
10
Apr
-10
Jun-
10
Aug
-10
Oct
-10
Dec
-10
Price Indexed
PruLink Asian Infrastructure Equity Fund
Benchmark
The above information on the PruLink Asian Infrastructure Equity Fund is provided by Prudential Asset Management (Singapore) Ltd.
36
PruLink Global Market Navigator Fund
FUND OBjECTIvE
The investment objective of the PruLink Global Market Navigator Fund (the “Fund”) is to achieve positive absolute returns over the medium term through the implementation of an actively managed asset allocation strategy in a diversified range of global assets through exchange traded funds (“ETF”), index futures, direct equity and bonds, swaps, options and foreign exchange forwards, each of which may be traded through recognised exchanges or via the over-the-counter markets.
Fund Details
PruLink Global Market Navigator Fund
Launch Date 18 Aug 2008
Bid Price (as at 31 Dec 2010) $0.912
Offer Price (as at 31 Dec 2010) $0.960
Risk Classification
Broadly Diversified – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)PruLink Global Market Navigator Fund -2.11%
Net Investment Return (since inception of the fund)
PruLink Global Market Navigator Fund -4.02%
There is currently no suitable benchmark for this Fund. Prior to 24 June 2010, the benchmark for the Fund was USD 3-month LIBOR plus 3% per annum. The high market volatility experienced in recent years showed that financial market returns are not normally distributed as assumed in almost all financial models, which has underestimated risk. Given that the Fund is largely invested in risky assets, the fund manager is of the view that a cash-plus benchmark no longer reflects the Fund’s investment objective, focus and approach over a short period of time.
40
50
60
70
80
90
100
110
120
130
140
Aug
-08
Dec
-08
Apr
-09
Aug
-09
Dec
-09
Apr
-10
Aug
-10
Dec
-10
Price IndexedPrulink Global Market Navigator FundBenchmark
The above information on the PruLink Global Market Navigator Fund is provided by Prudential Asset Management (Singapore) Ltd.
37
PruLink Asian Income Fund
FUND OBjECTIvE
The investment objective of the PruLink Asian Income Fund (the “Fund”) is to maximise income by investing primarily in equity and equity-related securities of companies, which are incorporated, listed in or have their areas of primary activity, in Asia Pacific, including Australia and New Zealand excluding Japan. The Fund may also invest in depository receipts including American Depository Receipts (“ADRs”) and Global Depository Receipts (“GDRS”), debt securities convertible into common shares, preference shares and warrants.
Fund Details
PruLink Asian Income Fund
Launch Date 2 Apr 2009
Bid Price (as at 31 Dec 2010) $1.237
Offer Price (as at 31 Dec 2010) $1.302
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Asian Income Fund 6.79%
MSCI AC Asia Ex-Japan Index 8.05%
Net Investment Return (since inception of the fund)
PruLink Asian Income Fund 38.45%
MSCI AC Asia Ex-Japan Index 47.59%
80
90
100
110
120
130
140
150
160
Apr
-09
Jun-
09
Aug
-09
Oct
-09
Dec
-09
Feb-
10
Apr
-10
Jun-
10
Aug
-10
Oct
-10
Dec
-10
Price Indexed
Prulink Asian Income FundBenchmark
The above information on the PruLink Asian Income Fund is provided by Prudential Asset Management (Singapore) Ltd.
38
PruLink Emerging Market Income Bond Fund
FUND OBjECTIvE
The investment objective of the PruLink Emerging Market Income Bond Fund (the “Fund”) is to provide an absolute return of capital growth and income primarily through investment in a portfolio of bonds and other fixed and floating rate securities issued by governments, government agencies, supra-national and corporate issuers in emerging markets.
Fund Details
PruLink Emerging Market Income Bond Fund
Launch Date 2 Jul 2009
Bid Price (as at 31 Dec 2010) $0.921
Offer Price (as at 31 Dec 2010) $0.970
Risk Classification
Narrowly Focused – Low to Medium Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Emerging Market Income Bond Fund 0.75%
USD 3M Libor (SGD) -8.44%
Net Investment Return (since inception of the fund)
PruLink Emerging Market Income Bond Fund 5.91%
USD 3M Libor (SGD) -10.98%
PruLink Emerging Market Income Bond Fund
Benchmark
Price Indexed
Jul-
09
Sep-
09
Nov
-09
Jan-
10
Apr
-10
Jun-
10
Aug
-10
Oct
-10
Dec
-10
30
40
50
60
70
80
90
100
110
The above information on the PruLink Emerging Market Income Bond Fund is provided by Schroder Investment Management (Singapore) Ltd.
39
PruLink Greater China Fund
FUND OBjECTIvE
The investment objective of the PruLink Greater China Fund (the “Fund”) is to provide capital growth primarily through investment in equity securities of the People’s Republic of China, Hong Kong SAR and Taiwan companies.
Fund Details
PruLink Greater China Fund
Launch Date 6 Nov 2009
Bid Price (as at 31 Dec 2010) $0.983
Offer Price (as at 31 Dec 2010) $1.035
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Greater China Fund 2.41%
MSCI Golden Dragon 3.33%
Net Investment Return (since inception of the fund)
PruLink Greater China Fund 3.51%
MSCI Golden Dragon 5.08%
Price Indexed
Dec
-09
Jan-1
0
Mar
-10
Apr-
10
Jun-1
0
Jui-10
Sep-1
0
Oct
-10
Dec
-10
85
90
95
100
105 PruLink Greater China FundBenchmark
The above information on the PruLink Greater China Fund is provided by Schroder Investment Management (Singapore) Ltd.
40
PruLink GEMM Resources Fund
FUND OBjECTIvE
The investment objective of the PruLink GEMM Resources Fund (the “Fund”) is to provide long-term capital growth by investing primarily in natural resources companies globally, many of which are in the early stages of exploration.
Fund Details
PruLink GEMM Resources Fund
Launch Date 20 Jan 2010
Bid Price (as at 31 Dec 2010) $1.228
Offer Price (as at 31 Dec 2010) $1.293
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink GEMM Resources Fund N/A
HSBC Gold, Mining & Energy Total Return Net N/A
Net Investment Return (since inception of the fund)
PruLink GEMM Resources Fund 29.29%
HSBC Gold, Mining & Energy Total Return Net 19.33%
PruLink GEMM Resources Fund
BenchmarkPrice Indexed
Dec
-10
Oct
-10
Aug
-10
Jun-
10
Apr
-10
Feb-
10
90
95
100
105
115
110
120
125
130
The above information on the PruLink GEMM Resources Fund is provided by JPMorgan Asset Management (UK) Limited.
41
PruLink Singapore Growth Fund
FUND OBjECTIvE
The PruLink Singapore Growth Fund (the “Fund”) aims to provide policyholders with medium to long-term capital growth from a portfolio of Singapore equities.
Fund Details
PruLink Singapore Growth Fund
Launch Date 5 Jul 2010
Bid Price (as at 31 Dec 2010) $1.001
Offer Price (as at 31 Dec 2010) $1.054
Risk Classification
Narrowly Focused – Higher Risk
Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)
PruLink Singapore Growth Fund N/A
Straits Times Index (STI) N/A
Net Investment Return (since inception of the fund)
PruLink Singapore Growth Fund 5.41%
Straits Times Index (STI) 8.18%
The above information on the PruLink Singapore Growth Fund is provided by Aberdeen Asset Management Asia Limited.
42
SCHEDULE OF INVESTMENTSAs at 31 December 2010
PRULINK SINGAPORE MANAGED FUND
Investments classified by CountryMarket value
SGD% of Net
AssetsAustralia 2,047,683 0.06 Bermuda 78,563,507 2.31 Cayman Islands 14,008,718 0.41 Hong Kong 8,903,614 0.26 India 4,206,943 0.12 Isle Of Man 133,313,184 3.90 Luxembourg 77,358,452 2.28 Mauritius 50,234,710 1.47 Netherlands 630,000 0.02 New Zealand 2,763,475 0.08 Singapore 2,962,915,490 86.76 South Korea 17,084,767 0.50 Thailand 2,199,308 0.06 United Arab Emirates 5,905,356 0.17 United Kingdom 3,539,300 0.10 United States 34,193,320 1.00
Investments classified by IndustryMarket value
SGD% of Net
AssetsAgriculture 160,167,305 4.69 Airlines 73,758,240 2.16 Banks 777,128,974 22.76 Beverages 69,678,558 2.04 Bond Funds 70,297,652 2.06 Distribution & Wholesale 37,615,247 1.10 Engineering & Construction 105,951,972 3.10 Financial Services 143,178,909 4.19 Food 62,946,063 1.84 Holding Companies 222,428,031 6.51 Lodging 206,112,638 6.04 Media 63,876,005 1.87 Multi Industry 40,464,885 1.19 Real Estate 297,838,132 8.72 Shipbuilding 94,734,099 2.78 Sovereign Govt. Obligations 635,665,252 18.61 Telecommunications 239,515,175 7.01 Transportation 49,080,590 1.44 Others 47,430,100 1.39
Investments classified by Asset ClassMarket value
SGD% of Net
AssetsEquity Securities 2,299,790,814 67.35 Debt Securities 959,722,224 28.10 Investments in Funds 138,354,789 4.05 Other Net Assets 17,067,696 0.50
43
Investments by Credit Rating of Debt Securities(by Moody’s or equivalents)
Market value SGD
% of Net Assets
Aaa 620,500,584 18.17 Aa1 13,375,304 0.39 Aa2 12,311,640 0.36 Aa3 4,522,246 0.13 A1 32,880,342 0.96 A2 15,657,336 0.46 A3 54,837,359 1.61 Baa1 8,699,738 0.26 Baa2 14,327,911 0.42 Baa3 10,623,374 0.31 Ba1 2,532,183 0.07 Not rated 169,454,207 4.96
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsDBS Group Holdings Ltd 237,036,583 6.98 Oversea–Chinese Banking Corporation Ltd 231,915,730 6.83 Singapore Telecommunications Ltd 230,854,561 6.79 United Overseas Bank Ltd 215,261,483 6.34 Keppel Corporation Ltd 142,406,279 4.19 Genting Singapore Plc 133,313,184 3.92 Wilmar International Ltd 97,567,900 2.87 CapitaLand Ltd 92,976,258 2.74 Singapore Government Bond 3.15% 09/01/2020 81,786,132 2.41 Singapore Government Bond 3.75% 09/01/2016 76,068,276 2.24
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsDBS Group Holdings Ltd 278,075,244 8.88 Singapore Telecommunications Ltd 257,377,442 8.22 United Overseas Bank Ltd 255,793,133 8.16 Oversea–Chinese Banking Corporation Ltd 246,748,793 7.88 CapitaLand Ltd 111,598,141 3.56 Keppel Corporation Ltd 108,620,034 3.47 Singapore Government Bond 4% 09/01/2018 99,630,000 3.18 Wilmar International Ltd 85,621,880 2.73 Singapore Government Bond 3.75% 09/01/2016 82,657,455 2.64Singapore Airlines Ltd 80,269,632 2.56
Exposure to DerivativesMarket value
SGD% of Net
Assets(i) Market value of derivatives
Forward Contracts 3,315,691 0.10%(ii) Net gain/(loss) on derivatives realised
Forward Contracts 2,090,482 (iii) Net gain/(loss) on outstanding derivatives
Forward Contracts 3,315,691
44
Investments in Collective Investment SchemesMarket value
SGD% of Net
AssetsAscendas REIT 25,425,810 0.74Cache Logistics Trust 2,255,205 0.07CapitaMall Trust 37,561,192 1.10IOF – Asia Bond 70,297,652 2.06MapleTree Industrial Trust 1,010,430 0.03Suntec REIT 1,804,500 0.05
BorrowingsNot applicable
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 252,707,617 234,939,645
Related Party TransactionsFund management charge of 1.3% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd.
Annualised Expense Ratio*2010: 1.31% 2009: 1.32%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 60.92% 2009: 89.50%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
45
PRULINK ASIAN EQUITY FUND
Investments classified by CountryMarket value
SGD% of Net
AssetsBermuda 13,526,950 1.30Cayman Islands 86,916,644 8.32China 105,289,209 10.07Hong Kong 165,795,888 15.86India 130,801,634 12.52Indonesia 33,146,693 3.17Malaysia 34,408,871 3.29Philippines 9,219,652 0.88Singapore 52,538,587 5.03South Korea 219,575,983 21.01Taiwan 149,286,382 14.28Thailand 31,039,948 2.97United States 7,888,939 0.76
Investments classified by IndustryMarket value
SGD% of Net
AssetsApparel 20,276,018 1.94 Auto Manufactures 17,642,024 1.69 Auto Parts & Equipment 7,017,814 0.67 Banks 149,887,983 14.34 Building Material 23,522,352 2.25 Chemicals 18,025,667 1.73 Coal 11,727,261 1.12 Commercial Services 7,347,870 0.70 Computers 43,447,557 4.16 Electric Companies 33,037,701 3.16 Electronics 53,319,429 5.10 Engineering & Construction 55,326,483 5.29 Financial Services 30,813,391 2.95 Healthcare Products 8,091,630 0.78 Holding Companies 56,355,030 5.39 Insurance 61,345,105 5.87 Internet 7,888,939 0.76 Investment Companies 14,018,204 1.34 Iron & Steel 19,560,957 1.87 Lodging 8,559,136 0.82 Mining 35,940,732 3.44 Miscellaneous Machinery 11,004,744 1.05 Multi Industry 14,789,646 1.42 Oil & Gas Producers 52,388,856 5.01 Pharmaceuticals 18,606,791 1.78 Real Estate 48,468,255 4.64 Retail 37,829,831 3.62 Semiconductors 66,583,316 6.37 Software 32,776,377 3.14 Telecommunications 68,485,932 6.55 Others 5,350,349 0.51
SCHEDULE OF INvESTMENTSAs at 31 December 2010
46
Investments classified by Asset ClassMarket value
SGD% of Net
AssetsEquity Securities 1,039,435,380 99.46 Other Net Assets 5,644,359 0.54
Investments by Credit Rating of Debt SecuritiesNot applicable
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsSamsung Electronics Co Ltd 45,004,724 4.31 Hutchison Whampoa Ltd 35,397,424 3.39 Bank of China Ltd 33,932,935 3.25 Hon Hai Precision Industry 29,781,033 2.85 Samsung Fire & Marine Insurance 29,735,800 2.85 Shinsegae Co Ltd 26,486,921 2.53 China Unicom Hong Kong Ltd 26,228,060 2.51 Hyundai Engineering & Construction 24,480,286 2.34 AAC Acoustic Technologies 23,538,396 2.25 CNOOC Ltd 23,293,914 2.23
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsHon Hai Precision Industry 31,373,404 3.27Bank of China Ltd 28,052,893 2.92Samsung Electronics Co Ltd 27,633,909 2.88China Mobile Ltd 27,438,508 2.86Henderson Land Development 25,200,125 2.63Wharf Holdings Ltd 25,165,932 2.62CNOOC Ltd 25,062,736 2.61Shinsegae Co Ltd 24,571,805 2.56AAC Acoustic Technologies 24,542,647 2.56ICICI Bank Ltd 23,917,965 2.49
Exposure to DerivativesMarket value
SGD% of Net
Assets
(i) Market value of derivatives Forward Contracts Nil –
(ii) Net gain/(loss) on derivatives realised Forward Contracts
(4,877)
(iii) Net gain/(loss) on outstanding derivatives Forward Contracts Nil
47
Investments in Collective Investment SchemesNot applicable
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 67,503,399 67,446,580
Annualised Expense Ratio*2010: 1.56% 2009: 1.55%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 46.64% 2009: 52.28%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
48
PRULINK GLOBAL EQUITY FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
39,212,375 Aberdeen Fund – Global Opportunities Fund SGD Share Class
32,118,856 99.96
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesPruLink Global Equity Fund invests SGD 32,118,856, equivalent to 99.96% of its net asset value, in Aberdeen Fund – Global Opportunities Fund SGD Share Class.
BorrowingsNot applicable
Related Party Transactions
Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 6,372,262 49,885,790
Annualised Expense Ratio*2010: 1.79% 2009: 1.59%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 70.52% 2009: 15.95%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
49
ABERDEEN FUND – GLOBAL OPPORTUNITIES FUND SGD SHARE CLASS
Top 10 Holdings as at 30 September 2010Market value
USD% of Net
AssetsVodafone 95,724,791 3.90ENI 84,096,056 3.50Zurich Financial Services 83,787,642 3.50Philip Morris International 83,633,705 3.40TSMC 78,574,580 3.20Tenaris ADR 76,736,182 3.20QBE Insurance Group 75,621,154 3.10Roche Holdings 73,703,059 3.00Canon 73,261,542 3.00Novartis 72,594,814 3.00
Top 10 Holdings as at 31 December 2009(Previously held by underlying investment International Opportunities Funds – World Value Equity)
Market value USD
% of Net Assets
Total S.A. 5,887,969 1.88BP PLC 5,873,420 1.87Sanofi–Aventis 5,594,162 1.78Exxon Mobil Corporation 5,571,570 1.78Microsoft Corp 4,812,687 1.53TNT NV 4,432,613 1.41HSBC Holdings PLC 4,361,644 1.39Vodafone Group PLC 4,323,061 1.38International Business Machines Corp 4,228,026 1.35Procter & Gamble Co 4,196,995 1.34
Annualised Expense Ratio*#
2010: 1.78% 2009: –
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio#
2010: 10.31% 2009: –
# No comparative ratios are presented as the Fund changed its underlying fund in 2010.
Note: Information for the same reporting period as that of the ILP sub–fund is not available.
50
PRULINK GLOBAL BOND FUND
Investments classified by CountryMarket value
SGD% of Net
AssetsAustralia 642,186 0.74 Austria 3,472,363 4.01 Bermuda 245,475 0.28 Canada 1,655,161 1.91 Cayman Islands 681,390 0.79 France 551,554 0.64 Germany 17,809,575 20.55 Hong Kong 1,864,767 2.15 India 1,472,962 1.70 Italy 2,684,624 3.10 Japan 18,627,253 21.50 Malaysia 1,380,762 1.59 Netherlands 444,552 0.51 Poland 292,469 0.34 Portugal 998,867 1.15 Singapore 4,435,843 5.12 South Korea 6,363,006 7.34 Spain 4,753,538 5.49 Switzerland 1,588,289 1.83 Thailand 369,947 0.43 United Kingdom 4,109,234 4.74 United States 9,386,972 10.83 US Virgin Islands 1,345,450 1.55
Investments classified by IndustryMarket value
SGD% of Net
AssetsBanks 13,206,970 15.24 Financial Services 6,314,003 7.29 Oil & Gas Producers 1,380,762 1.59 Real Estate 681,390 0.79 Sovereign Govt. Obligations 62,005,900 71.55 Telecommunications 890,488 1.03 Others 696,726 0.80
Investments classified by Asset ClassMarket value
SGD% of Net
AssetsDebt Securities 85,176,239 98.29 Other Net Assets 1,479,870 1.71
SCHEDULE OF INvESTMENTSAs at 31 December 2010
51
Investments by Credit Rating of Debt Securities (by Moody’s or equivalents)
Market value SGD
% of Net Assets
Aaa 28,684,625 33.10 Aa1 4,753,538 5.49 Aa2 24,958,906 28.80 Aa3 1,977,775 2.28 A1 10,163,843 11.73 A2 2,031,848 2.35 A3 1,605,235 1.85 Baa2 2,305,007 2.66 Baa3 513,405 0.59 Not rated 8,182,057 9.44
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsDeutschland Rep 4.75% 04/07/2028 4,199,043 4.93 Pfand Ost L–Hypo 1.6% 15/02/2011 3,472,363 4.08 Deutschland Rep 4% 04/01/2018 3,001,993 3.52 Bayerische Lndbk 1.4% 22/04/2013 2,655,265 3.12 Japan Govt 30–Yr 2.5% 20/03/2038 2,572,435 3.02 Japan Govt 10–Yr 1.9% 20/06/2017 2,473,450 2.90 Deutschland Rep 6% 20/06/2016 2,398,612 2.82 Spanish Govt 6.15% 31/01/2013 2,249,543 2.64 Japan Govt 10–Yr 1.7% 20/03/2017 2,191,317 2.57 Korea Highway 4.375% 27/09/2016 2,063,390 2.42
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsJapan Govt 10–Yr 1.6% 20/03/2016 7,217,281 5.41 Spanish Govt 4.1% 30/07/2018 6,207,730 4.65 Japan Govt 10–Yr 1.7% 20/03/2017 4,750,778 3.56 Japan Govt 10–Yr 1.7% 20/12/2016 4,156,425 3.12 Spanish Govt 6.15% 31/01/2013 3,485,819 2.61 Deutschland Rep DBR 4% 04/01/2018 3,417,146 2.56 Pfand Ost L–Hypo 1.6% 15/02/2011 3,359,844 2.52 Japan Govt 10–Yr 1.4% 20/03/2018 3,284,577 2.46 Deutschland Rep DBR 6% 20/06/2016 3,267,866 2.45 Deutschland Rep DBR 3.75% 04/01/2015 3,138,084 2.35
Exposure to DerivativesMarket value
SGD% of Net
Assets
(i) Market value of derivatives Forward Contracts 104,174 0.12%
(ii) Net gain/(loss) on derivatives realised Forward Contracts
152,645
(iii) Net gain/(loss) on outstanding derivatives Forward Contracts 104,174
52
Investments in Collective Investment SchemesNot applicable
BorrowingsNot applicable
Related Party TransactionsFund management charge of 0.75% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 16,052,637 57,919,528
Annualised Expense Ratio*2010: 0.77% 2009: 0.77%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 48.97% 2009: 33.29%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
53
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK GLOBAL MANAGED FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
79,172,733 Schroder Multi–Asset Revolution Class A SGD Fund
93,107,133 100.03
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesPruLink Global Managed Fund invests SGD 93,107,133, equivalent to 100.03% of its net asset value, in Schroder Multi–Asset Revolution Class A SGD Fund.
BorrowingsNot applicable
Related Party Transactions
Fund management charge of 1.3% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 3,745,638 4,633,657
Annualised Expense Ratio*2010: 1.56% 2009: 1.37%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 108.08% 2009: 25.25%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
54
SCHRODER MULTI–ASSET REvOLUTION CLASS A SGD FUND
Top 10 Holdings as at 31 December 2010***Market value
SGD% of Net
Assets
Schroder International Selection Fund – Global Equity Alpha Class I Shares (Accumulation units) 12,247,044 9.40
Schroder International Selection Fund – Asian Bond Class I Shares (Accumulation units) 11,483,233 8.82
Schroder International Selection Fund – Emerging Markets Debt Absolute Return Class I Shares (Accumulation units) 11,304,109 8.68
Schroder International Selection Fund – Global Bond Class I Shares (Accumulation units) 11,249,182 8.64
Schroder International Selection Fund – Global Smaller Companies Class I Shares (Accumulation units) 9,631,155 7.39
Schroder International Selection Fund – EURO Corporate Bond Class I Shares (Accumulation units) 9,294,077 7.14
Schroder International Selection Fund – Global Property Securities Class I Shares 9,137,740 7.02
Schroder Singapore Fixed Income Fund Class I Shares 8,723,809 6.70
Schroder International Selection Fund – Global Inflation Linked Bond Class I Shares (Accumulation units) 7,762,403 5.96
Schroder International Selection Fund – Pacific Equity Class I Shares (Accumulation units) 7,527,150 5.78
Annualised Expense Ratio*#
2010: 1.55% 2009: –
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio**#
2010: 39.80% 2009: –
** The turnover ratio is calculated in accordance with the formulae stated in the “Code on Collective Investment Schemes”.
*** No comparative figures are presented as previously information on underlying sub–funds are presented in PruLink Global Equity Fund and PruLink Global Bond Fund.
# No comparative ratios are presented as the Fund changed its underlying fund in 2010.
55
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK SINGAPORE CASH FUND
Investments classified by CountryMarket value
SGD% of Net
AssetsCayman Islands 5,015,875 3.61France 5,002,145 3.61Germany 3,006,408 2.17Singapore 40,486,502 29.20South Korea 23,755,237 17.13United States 5,463,560 3.94
Investments classified by IndustryMarket value
SGD% of Net
AssetsBanks 38,772,021 27.96Financial Services 15,960,001 11.51Insurance 5,015,875 3.62Sovereign Govt. Obligations 22,981,830 16.57
Investments classified by Asset ClassMarket value
SGD% of Net
AssetsDebt Securities 82,729,727 59.66Other Net Assets 55,930,784 40.34
Investments by Credit Rating of Debt Securities / Money Market Instruments (by Moody’s or equivalents)
Market value SGD
% of Net Assets
Aaa 3,006,408 2.17Aa2 8,457,015 6.10A1 22,515,374 16.24A2 19,764,932 14.25Not rated 28,985,998 20.90
Investment by Maturity of Money Market InstrumentsMarket value
SGD% of Net
Assets0 – 30 days 4,001,868 2.89 61 – 90 days 33,012,803 23.81 91 – 120 days 2,751,738 1.98 121 – 180 days 7,510,193 5.41 181 – 240 days 11,503,107 8.30 241 – 300 days 17,502,048 12.62 More than 301 days 6,447,970 4.65
56
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsSingapore T–Bills 17/03/2011 22,981,830 16.57Oversea–Chinese Banking Corporation 5% 06/09/2011 11,500,504 8.29National Agricultural Co 1.5% 20/07/2011 6,500,962 4.69Jackson Nat Fund 3.92% 08/03/2011 5,015,875 3.62BNP Paribas 0.81% 23/08/2011 5,002,145 3.61Korea Dev Bank 1.18% 19/05/2011 4,504,298 3.25Kim Eng Holdings 2.3% 28/01/2011 4,001,868 2.89Export–Import Bank Korea 1.25% 18/10/2011 3,999,244 2.88KFW 1.9% 17/03/2011 3,006,408 2.17Shinhan Bank 1.5% 02/06/2011 3,005,895 2.17
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsSingapore T–Bills 18/02/2010 29,981,700 16.57Ascott Capital 3.09% 27/04/2010 8,284,237 8.29CMT MTN Pte Ltd 3.25% 01/04/2010 7,778,417 4.69BNZ International Funding 3.24% 28/07/2010 7,564,395 3.62Singapore T–Bills 25/02/2010 7,294,890 3.61NACF 3.30% 18/08/2010 7,034,300 3.25Housing & Development Board 2.82% 10/06/2010 6,094,350 2.84Ascendas 3.66% 14/05/2010 6,049,350 2.88Standard Chartered 2.48% 07/04/2010 5,508,861 2.17Korea Dev Bank 5.55% 22/01/2010 5,008,075 2.17
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesNot applicable
BorrowingsNot applicable
Related Party TransactionsFund management charge of 0.3% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 3,346,462 45,720,236
57
Annualised Expense Ratio*2010: 0.31% 2009: 0.32%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 122.99% 2009: 111.23%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
58
PRULINK GLOBAL TECHNOLOGY FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
155,262,641 PRU Global Technology Fund 79,494,472 100.02
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesPruLink Global Technology Fund invests SGD 79,494,472 equivalent to 100.02% of its net asset value, in PRU Global Technology Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Global Technology Fund invests SGD 79,494,472 equivalent to 100.02% of its net asset value, in PRU Global Technology Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 2,610,367 6,382,550
Annualised Expense Ratio*2010: 1.72% 2009: 1.83%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 6.25% 2009: 3.81%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
59
PRU GLOBAL TECHNOLOGY FUND
PRU Global Technology Fund is a feeder fund which feeds into the Luxembourg–domiciled International Opportunities Funds – Global Technology Fund.
Annualised Expense Ratio*2010: 1.71% 2009: 1.82%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 9.34% 2009: 5.62%
INTERNATIONAL OPPORTUNITIES FUNDS – GLOBAL TECHNOLOGY FUND
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsApple Computer Inc 6,564,174 9.67 Microsoft Corporation 5,102,103 7.52 Google Inc 4,330,579 6.38 International Business Machines Corporation 4,324,856 6.37 Oracle Corporation 3,883,727 5.72 Hewlett–Packard Development Company 2,322,788 3.42 Qualcomm Inc 2,241,536 3.30 Samsung Electronics Co Ltd 1,532,749 2.26 HTC Corp 1,365,904 2.01 Priceline.Com Inc 1,261,205 1.86
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsApple Computer Inc 4,833,895 7.65 Microsoft Corporation 4,314,511 6.83 Cisco Systems Inc 4,226,827 -6.69 Google Inc 3,991,374 6.32 International Business Machines Corporation 3,411,712 5.40 Hewlett–Packard Development Company 2,674,156 4.23 Intel Corporation 2,414,070 3.82 Oracle Corporation 2,355,440 3.73 Qualcomm Inc 1,601,209 2.53 Netapp Inc 1,342,803 2.13
60
PRULINK PAN EUROPEAN FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
40,182,682 PRU Pan European Fund 37,249,346 100.06
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesPruLink Pan European Fund invests SGD 37,249,346, equivalent to 100.06% of its net asset value, in PRU Pan European Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Pan European Fund invests SGD 37,249,346, equivalent to 100.06% of its net asset value, in PRU Pan European Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 4,013,868
Annualised Expense Ratio*2010: 1.74% 2009: 1.78%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 4.45% 2009: 4.73%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
61
PRU PAN EUROPEAN FUNDPRU Pan European Fund is a feeder fund which feeds into the Luxembourg–domiciled International Opportunities Funds – Pan European Fund.
Annualised Expense Ratio*
2010: 1.73% 2009: 1.77%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 4.24% 2009: 3.96%
INTERNATIONAL OPPORTUNITIES FUNDS – PAN EUROPEAN FUND
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsDCC PLC 2,898,271 3.94 Grpe Euro Tunnel SA 2,766,775 3.76 Sportingbet PLC 2,502,220 3.40 Amadeus It Holding SA 2,412,800 3.28 Vallourec 2,257,103 3.07 Compass Group PLC 2,217,155 3.02 Hugo Boss PFD 1,971,307 2.68 Valeo SA 1,963,548 2.67 Storebrand ASA 1,924,245 2.62 GAM Holding AG 1,862,705 2.53
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsTullow Oil PLC 5,631,640 5.44 Sportingbet PLC 4,500,762 4.35 Partygaming PLC 4,432,927 4.28 Grpe Euro Tunnel SA 4,258,880 4.11 Vallourec 4,086,916 3.95 Storebrand ASA 3,990,992 3.86 AXA SA 3,832,041 3.70 Credit Suisse Group Ag–Re 3,043,806 2.94 Fortum Oyj 2,887,382 2.79 Grifols SA 2,884,443 2.79
62
PRULINK PROTECTED GLOBAL TITANS FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
10,129,786 PRU Protected Global Titans Fund (S$) 11,679,643 100.12
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesPruLink Protected Global Titans Fund invests SGD 11,679,643, equivalent to 100.12% of its net asset value, in PRU Protected Global Titans Fund (S$).
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Protected Global Titans Fund invests SGD 11,679,643, equivalent to 100.12% of its net asset value, in PRU Protected Global Titans Fund (S$).
(ii) Fund management charge of 0.55% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 1,879,474 4,739,332
Annualised Expense Ratio*2010: 0.75% 2009: 0.82%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 22.52% 2009: 15.33%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
63
PRU PROTECTED GLOBAL TITANS FUND (S$)
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsGeneral Elec Cap 3.485% 08/03/2012 1,334,580 8.03Sunshine Assets Limited MTN 2.78% 11/02/2011 1,264,014 7.61City Developments Limited Series MTN 3.38% 25/04/2012 1,029,518 6.20Export–Import Bank of Korea EMTN 2.8% 04/05/2012 1,018,049 6.13Ascendas Real Estate Investment MTN 4.75% 29/04/2011 1,017,790 6.12Midpoint Properties Series MTN 3.75% 04/07/2011 767,775 4.62Shinsegae Company Limited 6.125% 27/06/2011 676,468 4.07Ascott Capital Pte Limited Series MTN 4.7% 07/07/2011 518,450 3.12Capitaland Commercial Limited MTN 4.4% 03/03/2011 509,361 3.06Bank of America Corporation 4% 09/03/2011 508,642 3.06
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsSunshine Assets Limited MTN 2.78% 11/02/2011 1,262,739 5.12Westfield Capital Corporation Series 4.375% 15/11/2010 1,078,824 4.38Ascendas Real Estate Investment MTN 4.75% 29/04/2011 1,028,725 4.17CCT MTN Pte Limited Series MTN 3.85% 20/08/2010 1,023,837 4.15National Agricultural Company GMTN 3.3% 18/08/2010 1,018,776 4.13Export–Import Bank of Korea EMTN 4.85% 28/04/2010 1,016,997 4.13Mapletreelog Treasury Company MTN 3.8% 12/03/2010 1,012,832 4.11Kookmin Bank Series GMTN 2.05% 18/10/2010 1,006,051 4.08Midpoint Properties Series MTN 3.75% 04/07/2011 774,422 3.14Ascott Capital Pte Limited MTN 3.1% 05/03/2010 759,039 3.08
Annualised Expense Ratio*2010: 0.66% 2009: 0.70%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 25.53% 2009: 82.37%
64
PRULINK ASIAN REACH MANAGED FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
435,044,725 PRU Asian Balanced Fund 750,887,195 99.94
Exposure to DerivativesNot applicable
Investments in Collective Investment SchemesPruLink Asian Reach Managed Fund invests SGD 750,887,195, equivalent to 99.94% of its net asset value, in PRU Asian Balanced Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Asian Reach Managed Fund invests SGD 750,887,195, equivalent to 99.94% of its net asset value, in PRU Asian Balanced Fund.
(ii) Fund management charge of 1.3% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 53,667,546 50,396,191
Annualised Expense Ratio*2010: 1.46% 2009: 1.50%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 2.38% 2009: 1.40%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar Commission
The soft dollar arrangements may include specific advice as to the advisability of dealing in, or as to the value of any investments, research and advisory services, economic and political analyses, portfolio analyses including valuation and performance measurements, market analyses data and quotation services, computer hardware and software or any other information facilities to the extend that they are used to support the investment decision making process, the giving of advice, the conduct of research or analysis, or analysis of trade execution, and custodial service in relation to the investments managed for clients.
SCHEDULE OF INvESTMENTSAs at 31 December 2010
65
Soft dollar arrangements have been undertaken by the Investment Manager in respect of the Fund. The soft dollar arrangements relate essentially to the use of analytical tool provided by broker for the purpose of assessing and monitoring the efficiency of trade execution. The tool is used for the benefit of all the funds managed by PAM Singapore. PAM Singapore confirms that trades were executed at the best available terms, taking into account the relevant market at the time for transactions of the kind and size concerned, and there was no churning of trades. The said broker has also executed trades for other schemes managed by the Investment Manager.
Soft–dollar commissions/arrangements shall not include travel, accommodation, entertainment, general administrative goods and services, general office equipment or premises, membership fees, employees’ salaries or direct money payment.
PRU ASIAN BALANCED FUNDPRU Asian Balanced Fund is a feeder fund which feeds into the Luxembourg–domiciled International Opportunities Funds – Asian Equity for its equity participation and International Opportunities Funds – US High Investment Grade Bond and International Opportunities Funds – US Investment Grade Bond for its bond participation.
Annualised Expense Ratio*2010: 1.42% 2009: 1.44%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 15.36% 2009: 32.54%
INTERNATIONAL OPPORTUNITIES FUNDS – ASIAN EQUITY
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsSamsung Electronics Co Ltd 40,347,341 4.25 Hutchison Whampoa Ltd 32,234,029 3.40 Bank Of China Ltd 30,812,325 3.25 Hon Hai Precision Industry 27,017,991 2.85 Samsung Fire & Marine Insurance 26,659,396 2.81 China Unicom Hong Kong Ltd 23,796,604 2.51 Shinsegae Co Ltd 23,745,769 2.50 Hyundai Engineering and Construction 22,182,320 2.34 AAC Acoustic Technologies 21,414,286 2.26 CNOOC Ltd 21,139,281 2.23
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsHon Hai Precision Industry 26,973,637 3.27 Bank Of China Ltd 24,124,469 2.92 Samsung Electronics Co Ltd 23,610,972 2.86 China Mobile Ltd 23,595,585 2.86 Henderson Land Development 21,668,095 2.63 Wharf Holdings Limited 21,638,862 2.62 CNOOC Ltd 21,553,446 2.61 AAC Acoustic Technologies 21,020,268 2.55 Shinsegae Co Ltd 20,994,405 2.54 ICICI Bank Ltd 20,561,590 2.49
66
INTERNATIONAL OPPORTUNITIES FUNDS – US HIGH INvESTMENT GRADE BOND
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsBNYMellon Liquidity B Fund 5,750,373 2.40 Bank of America Corp 5.75% 01/12/2017 4,148,208 1.73 General Elec Cap Corp 2.25% 09/11/2015 3,831,280 1.60 Morgan Stanley 5.75% 31/08/2012 3,206,076 1.34 Novartis 2.9% 24/04/2015 3,074,817 1.28 Credit Suisse New York 5.5% 01/05/2014 2,955,933 1.23 Westpac Bank 3% 04/08/2015 2,907,627 1.21 Roche Holding Inc 6% 01/03/2019 2,778,101 1.16 JPMorgan Chase & Co 6.3% 23/04/2019 2,662,715 1.11 General Elec Cap Corp 6.88% 10/01/2039 2,624,038 1.09
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsWells Fargo & Co 5.625% 11/12/2017 5,168,518 2.37 JPMorgan Chase & Co 6.3% 23/04/2019 3,480,148 1.60 Merrill Lynch & Co 6.05% 15/08/2012 3,325,916 1.53 Morgan Stanley 5.75% 31/08/2012 3,222,867 1.48 Bank Of America Corp 5.75% 01/12/2017 3,083,718 1.41 IBM Corp 2.1% 06/05/2013 3,001,281 1.38 Credit Suisse New York 5.5% 01/05/2014 2,938,056 1.35 General Elec Cap Corp 5.25% 19/10/2012 2,665,120 1.22 Roche Holding Inc 6% 01/03/2019 2,648,592 1.21 General Elec Cap Corp 6.875% 10/01/2039 2,641,361 1.21
INTERNATIONAL OPPORTUNITIES FUNDS – US INvESTMENT GRADE BOND
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsBNYMellon Liquidity B Fund 7,490,133 1.37 Georgia P 1.3% 15/09/2013 5,999,334 1.09 Wachovia VAR 01/07/2045 4,905,199 0.90 Goldman Sachs Group Inc 6.75% 01/10/2037 4,554,695 0.83 Citigroup Inc 5% 15/09/2014 3,994,924 0.73 Dominion 2.25% 01/09/2015 3,932,324 0.72 American 2.75% 15/09/2015 3,728,494 0.68 Anheuser–Busch Inbev Wor 4.125% 15/01/2015 3,678,185 0.67 Xstrata Finance Canada 7.25% 15/07/2012 3,545,938 0.65 NBC Unive 2.88% 01/04/2016 3,360,569 0.61
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsChase Issuance Trust 2007–A15 4.96% 17/09/2012 5,151,961 1.24 Diageo Finance BV 3.25% 15/01/2015 4,783,339 1.15 Walot 2007-1 5.29% 20/04/2012 4,690,766 1.13 Wachovia Bank Commercial Mortgage T 2006–C27 5.765% 15/07/2045 4,155,686 1.00 Barclays Bank PLC 2.5% 23/01/2013 4,003,636 0.97 Goldman Sachs Group Inc 6.75% 01/10/2037 3,825,929 0.92 Citigroup Inc 5% 15/09/2014 3,741,353 0.90 Simon Property Group Inc 6.75% 15/05/2014 3,739,890 0.90 Xstrata Finance Canada 7.25% 15/07/2012 3,571,330 0.86 Anheuser–Busch Inbev Wor 4.125% 15/01/2015 3,564,946 0.86
67
PRULINK CHINA–INDIA FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
474,294,058 PRU Dragon Peacock Fund 1,254,982,077 99.91
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink China–India Fund invests SGD 1,254,982,077, equivalent to 99.91% of its net asset value, in PRU Dragon Peacock Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink China–India Fund invests SGD 1,254,982,077, equivalent to 99.91% of its net asset value, in PRU Dragon Peacock Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 143,154,652 156,175,971
Annualised Expense Ratio*2010: 1.63% 2009: 1.72%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 5.45% 2009: 7.07%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar Commission
The soft dollar arrangements may include specific advice as to the advisability of dealing in, or as to the value of any investments, research and advisory services, economic and political analyses, portfolio analyses including valuation and performance measurements, market analyses data and quotation services, computer hardware and software or any other information facilities to the extend that they are used to support the investment decision making process, the giving of advice, the conduct of research or analysis, or analysis of trade execution, and custodial service in relation to the investments managed for clients.
SCHEDULE OF INvESTMENTSAs at 31 December 2010
68
Soft dollar arrangements have been undertaken by the Investment Manager in respect of the Fund. The soft dollar arrangements relate essentially to the use of analytical tool provided by broker for the purpose of assessing and monitoring the efficiency of trade execution. The tool is used for the benefit of all the funds managed by PAM Singapore. PAM Singapore confirms that trades were executed at the best available terms, taking into account the relevant market at the time for transactions of the kind and size concerned, and there was no churning of trades. The said broker has also executed trades for other schemes managed by the Investment Manager.
Soft–dollar commissions/arrangements shall not include travel, accommodation, entertainment, general administrative goods and services, general office equipment or premises, membership fees, employees’ salaries or direct money payment.
PRU DRAGON PEACOCK FUND
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsBank of China Limited 105,505,433 7.90 Infosys Technologies Limited 76,423,159 5.72 Reliance Industries Limited 68,720,039 5.15 Industrial and Commercial Bank of China Company Limited 52,476,878 3.93 ICICI Bank Limited 50,710,864 3.80 CNOOC Limited 46,025,664 3.45 Dr Reddy’s Laboratories Limited 39,439,017 2.95 Focus Media Holding Limited 38,656,555 2.89 Evergrande Real Estate Group 38,531,115 2.88 Hindalco Industries Limited 37,632,504 2.82
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsIndustrial and Commercial Bank of China Company Limited 75,874,361 5.76 Bank of China Limited 71,013,470 5.39 Reliance Industries Limited 68,752,735 5.22 ICICI Bank Limited 58,319,264 4.43 Infosys Technologies Limited 58,247,748 4.42 Axis Bank Limited 47,161,047 3.58 China Mobile Limited 43,853,797 3.33 Sterlite Industries (India) Limited 38,499,210 2.92 BYD Company Limited 36,347,323 2.76 CNOOC Limited 33,547,227 2.55
Annualised Expense Ratio*2010: 1.62% 2009: 1.71%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 16.78% 2009: 27.07%
69
PRULINK EMERGING MARKETS FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
7,746,278 JPMorgan Funds – Emerging Markets Equity Fund C (Acc) USD Share Class
252,498,100 99.91
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Emerging Markets Fund invests SGD 252,498,100, equivalent to 99.91% of its net asset value, in JPMorgan Funds – Emerging Markets Equity Fund C (Acc) USD Share Class.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.6% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 22,811,953 26,114,145
Annualised Expense Ratio*2010: 1.81% 2009: 1.91%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 104.44% 2009: 2.58%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
70
jPMORGAN FUNDS – EMERGING MARKETS EQUITY FUND C (ACC) USD SHARE CLASS
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsHousing Development Finance 409,657,408 4.31 Vale 403,618,496 4.25 Petrobras 334,788,480 3.52 Taiwan Semiconductor Manufacturing Company 294,459,144 3.10 Infosys Technologies 287,285,720 3.03 Samsung Electronics 282,952,128 2.98 Turkiye Garanti Bankasi 239,849,760 2.53 China Merchants Bank 234,239,296 2.47 CNOOC 221,709,824 2.33 Hyundai Mobis 219,075,776 2.31
Top 10 Holdings as at 31 December 2009(Previously held by underlying investment Franklin Templeton Investment Funds – Templeton Emerging Markets Fund)
Market value USD
% of Net Assets
Vale SA 64,629,473 4.85Petroleo Brasileiro SA 60,098,747 4.51PetroChina Co Ltd 50,770,782 3.81Gazprom/OAO 47,306,109 3.55Tata Consultancy Services Ltd 44,907,490 3.37Sesa Goa Ltd 42,375,613 3.18Lukoil Holdings 38,777,684 2.91Itau Unibanco Holding SA 38,644,427 2.90OTP Bank 32,114,852 2.41Anglo American PLC 31,182,055 2.34
Annualised Expense Ratio*#
2010: 1.10% 2009: –
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio**#
2010: Nil 2009: –
** Portfolio Turnover Ratio is an indicator of the relevance of the additional costs incurred by a fund when buying and selling investments according to its investment policy and is calculated in accordance with the guidelines dated 16 May 2008 issued by the Swiss Fund Association as outlined below: (Total securities’ purchase and sales – total subscriptions and redemptions of Sub–Fund shares)/Average net Sub–Fund assets in Sub–Fund currency
The Portfolio Turnover Ratio is expressed as a percentage and in the case the outcome of the calculation is negative, a zero value is published.
# No comparative ratios are presented as the Fund changed its underlying fund in 2010.
71
PRULINK AMERICA FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
1,213,062 Fidelity Funds – America Fund 7,819,546 99.82
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink America Fund invests SGD 7,819,546, equivalent to 99.82% of its net asset value, in Fidelity Funds – America Fund.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 2,340,438 768,384
Annualised Expense Ratio*2010: 1.94% 2009: 1.94%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 23.33% 2009: 34.43%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
72
FIDELITY FUNDS – AMERICA FUND
Top 10 Holdings as at 31 October 2010 Market value
USD% of Net
AssetsChevron 47,531,977 2.70 Coca–Cola 42,250,646 2.40 Google A 42,250,646 2.40 Philip Morris International 42,250,646 2.40 Apple 40,490,202 2.30 Cisco Systems 36,969,315 2.10 Pfizer 36,969,315 2.10 Ebay 35,208,871 2.00 Citigroup 33,448,428 1.90 Oracle 33,448,428 1.90
Top 10 Holdings as at 31 October 2009Market value
USD% of Net
AssetsPfizer 40,012,000 2.80 JPMorgan Chase 35,725,000 2.50 Cisco Systems 31,438,000 2.20 Chevron 31,438,000 2.20 Microsoft 30,009,000 2.10 Wells Fargo 28,580,000 2.00 Procter & Gamble 27,151,000 1.90 Bank Of America 27,151,000 1.90 CVS Caremark 25,722,000 1.80 Hewlett–Packard 24,293,000 1.70
Annualised Expense Ratio*2010: 1.91% 2009: 1.95%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 120.89% 2009: 122.30%
Note: Information for the same reporting period as that of the ILP sub–fund is not available.
73
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK INTERNATIONAL BOND FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
18,487,668 Fidelity Funds – International Bond Fund II 17,156,556 100.00
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink International Bond Fund invests SGD 17,156,556, equivalent to 100.00% of its net asset value, in Fidelity Funds – International Bond Fund II.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 0.75% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 1,654,089 3,059,784
Annualised Expense Ratio*2010: 1.17% 2009: 1.15%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 27.48% 2009: 29.20%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
74
FIDELITY FUNDS – INTERNATIONAL BOND FUND II
Top 10 Holdings as at 31 October 2010Market value
SGD% of Net
AssetsGermany 4% 04/07/2016 2,716,473 5.80Germany 1.75% 09/10/2015 1,873,430 4.00Japan 1.9% 20/03/2029 1,826,594 3.90France Oat 2.5% 25/10/2020 1,639,251 3.50Canada 3.75% 01/06/2012 1,358,237 2.90Germany 3% 04/07/2020 1,311,401 2.80UK Gilt 2.75% 22/01/2015 1,077,222 2.30BA Covered Bond 4.125% 05/04/2012 1,030,386 2.20Japan 1.1% 10/12/2016 889,879 1.90Germany 2.25% 04/09/2020 796,208 1.70
Top 10 Holdings as at 31 October 2009Market value
SGD% of Net
AssetsFinland 3.875% 15/09/2017 3,186,000 5.90Germany 2.5% 10/10/2014 2,538,000 4.70Germany 4.75% 04/07/2040 2,160,000 4.00Canada 3.75% 01/06/2012 1,404,000 2.60UK Gilt 2.75% 22/01/2015 1,350,000 2.50Germany 3.75% 04/01/2015 1,350,000 2.50BA Covered Bond 4.125% 05/04/2012 1,188,000 2.20Germany 1.25% 16/09/2011 1,026,000 1.90KFW 2.05% 16/02/2026 972,000 1.80Australia 6.25% 15/04/2015 918,000 1.70
Annualised Expense Ratio*2010: 1.15% 2009: 1.15%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 163.91% 2009: 231.83%
Note: Information for the same reporting period as that of the ILP sub–fund is not available.
75
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK ADAPT 2015 FUND
Effective 14 December 2010, PruLink Adapt 2015 Fund feeds into various Schroder funds.
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg 54,892 Schroder Investment Management
– ISF Global Inflation Linked Bond 2,491,035 5.00
268,525 Schroder Investment Management – ISF Asian Bond Absolute Return
4,920,469 9.88
68,027 Schroder Investment Management – ISF Emerging Markets
1,441,933 2.90
10,285 Schroder Investment Management – ISF Global Equity Alpha
1,930,307 3.88
15,479 Schroder Investment Management – ISF Global Property Securities
2,519,137 5.06
164,993 Schroder Investment Management – ISF Pacific Equity
2,987,372 6.00
96,299 Schroder Investment Management – ISF Emerging Markets Debt Absolute Return
3,935,426 7.91
5,252 Schroder Investment Management – ISF Global Smaller Companies
912,830 1.83
49,873 Schroder Investment Management – ISF Global Bond
8,337,403 16.75
Singapore1,289,990 Schroder Investment Management
– Singapore Trust 2,536,120 5.09
10,376,027 Schroder Investment Management – Singapore Fixed Income Fund
12,500,000 25.11
United States13,990 SPDR Gold Trust 2,466,663 4.96
Total Investments 46,978,695 94.37
Exposure to DerivativesMarket value
SGD% of Net
Assets(i) Market value of derivatives
Forward Contracts 352,848 0.71%
(ii) Net gain/(loss) on derivatives realised Forward Contracts
1,054,515
(iii) Net gain/(loss) on outstanding derivatives Forward Contracts
352,848
76
Investments in Collective Investment Schemes
PruLink Adapt 2015 Fund is a feeder fund which feeds into the Schroder Investment Management (“SIM”) – ISF Emerging Markets, SIM – ISF Global Equity Alpha, SIM – ISF Pacific Equity, SIM – ISF Global Smaller Companies and SIM – Singapore Trust for its equity participation; SIM – ISF Global Inflation Linked Bond, SIM – ISF Asian Bond Absolute Return, SIM – ISF Emerging Markets Debt Absolute Return, SIM – ISF Global Bond and SIM – Singapore Fixed Income Fund for its bond participation; and SIM – ISF Global Property Securities and SPDR Gold Trust for its alternatives participation.
BorrowingsNot applicable
Related Party Transactions
Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 573,157 5,204,435
Annualised Expense Ratio*2010: 1.65% 2009: 1.58%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 103.42% 2009: 15.69%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
77
PRULINK ADAPT 2025 FUND
Effective 14 December 2010, PruLink Adapt 2025 Fund feeds into various Schroder funds.
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg 257,366 Schroder Investment Management
– ISF Global Inflation Linked Bond 11,679,536 4.99
880,621 Schroder Investment Management – ISF Asian Bond Absolute Return
16,136,560 6.89
781,602 Schroder Investment Management – ISF Emerging Markets
16,567,158 7.08
185,630 Schroder Investment Management – ISF Global Equity Alpha
34,840,902 14.88
142,063 Schroder Investment Management – ISF Global Property Securities
23,120,726 9.88
1,292,231 Schroder Investment Management – ISF Pacific Equity
23,397,224 10.00
338,690 Schroder Investment Management – ISF Emerging Markets Debt Absolute Return
13,841,217 5.91
80,796 Schroder Investment Management – ISF Global Smaller Companies
14,043,645 6.00
162,322 Schroder Investment Management – ISF Global Bond
27,135,972 11.59
Singapore8,462,332 Schroder Investment Management
– Singapore Trust 16,636,945 7.11
19,506,931 Schroder Investment Management – Singapore Fixed Income Fund
23,500,000 10.04
United States65,820 SPDR Gold Trust 11,605,131 4.96
Total Investments 232,505,016 99.33
Exposure to DerivativesMarket value
SGD% of Net
Assets
(i) Market value of derivatives Forward Contracts 1,231,690 0.53%
(ii) Net gain/(loss) on derivatives realised Forward Contracts
4,274,409
(iii) Net gain/(loss) on outstanding derivatives Forward Contracts
1,231,690
SCHEDULE OF INvESTMENTSAs at 31 December 2010
78
Investments in Collective Investment SchemesPruLink Adapt 2025 Fund is a feeder fund which feeds into the Schroder Investment Management (“SIM”) – ISF Emerging Markets, SIM – ISF Global Equity Alpha, SIM – ISF Pacific Equity, SIM – ISF Global Smaller Companies and SIM – Singapore Trust for its equity participation; SIM – ISF Global Inflation Linked Bond, SIM – ISF Asian Bond Absolute Return, SIM – ISF Emerging Markets Debt Absolute Return, SIM – ISF Global Bond and SIM – Singapore Fixed Income Fund for its bond participation; and SIM – ISF Global Property Securities and SPDR Gold Trust for its alternatives participation.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.55% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 17,020,270
Annualised Expense Ratio*2010: 1.71% 2009: 1.65%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 108.52% 2009: 16.43%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
79
PRULINK ADAPT 2035 FUND
Effective 14 December 2010, PruLink Adapt 2035 Fund feeds into various Schroder funds.
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg 199,216 Schroder Investment Management
– ISF Asian Bond Absolute Return 3,650,442 6.89
252,628 Schroder Investment Management – ISF Emerging Markets
5,354,813 10.12
55,651 Schroder Investment Management – ISF Global Equity Alpha
10,445,197 19.73
32,155 Schroder Investment Management – ISF Global Property Securities
5,233,181 9.89
347,563 Schroder Investment Management – ISF Pacific Equity
6,292,995 11.89
76,621 Schroder Investment Management – ISF Emerging Markets Debt Absolute Return
3,131,275 5.91
30,180 Schroder Investment Management – ISF Global Smaller Companies
5,245,725 9.91
36,737 Schroder Investment Management – ISF Global Bond
6,141,437 11.60
Singapore2,167,183 Schroder Investment Management
– Singapore Trust 4,260,681 8.05
United States14,870 SPDR Gold Trust 2,621,822 4.95
Total Investments 52,377,568 98.94
Exposure to DerivativesMarket value
SGD% of Net
Assets(i) Market value of derivatives
Forward Contracts 236,567 0.45%
(ii) Net gain/(loss) on derivatives realised Forward Contracts
613,426
(iii) Net gain/(loss) on outstanding derivatives Forward Contracts
236,567
SCHEDULE OF INvESTMENTSAs at 31 December 2010
80
Investments in Collective Investment SchemesPruLink Adapt 2035 Fund is a feeder fund which feeds into the Schroder Investment Management (“SIM”) – ISF Emerging Markets, SIM – ISF Global Equity Alpha, SIM – ISF Pacific Equity, SIM – ISF Global Smaller Companies and SIM – Singapore Trust for its equity participation; SIM – ISF Asian Bond Absolute Return, SIM – ISF Emerging Markets Debt Absolute Return and SIM – ISF Global Bond for its bond participation; and SIM – ISF Global Property Securities and SPDR Gold Trust for its alternatives participation.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.6% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 3,310,595
Annualised Expense Ratio*2010: 1.77% 2009: 1.71%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 106.98% 2009: 15.85%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
81
PRULINK GLOBAL BASICS FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
263,509,460 PRU Global Basics Fund 329,123,316 100.00
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Global Basics Fund invests SGD 329,123,316, equivalent to 100.00% of its net asset value, in PRU Global Basics Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Global Basics Fund invests SGD 329,123,316, equivalent to 100.00% of its net asset value, in PRU Global Basics Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 33,170,999
Annualised Expense Ratio*2010: 1.77% 2009: 1.78%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 1.09% 2009: 3.56%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
82
PRU GLOBAL BASICS FUND
PRU Global Basics Fund is a feeder fund, which feeds into Sterling Class A shares of the M&G Investment Funds – M&G Global Basics Fund, domiciled in the United Kingdom.
Annualised Expense Ratio*2010: 1.75% 2009: 1.77%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 0.82% 2009: 3.07%
M&G GLOBAL BASICS FUND NET ACCUMULATION SHARES IN STERLING CLASS A SHARES
Top 10 Holdings as at 31 December 2010Market value
GBP% of Net
AssetsFraser and Neave 280,081,362 4.46Illuka Resources 218,354,441 3.46Unilever 200,158,000 3.21 Tullow Oil 186,381,046 3.04 Lonmin 184,631,016 3.00 K&S 184,543,671 2.97Imerys 179,248,164 2.91 Eramet 178,808,963 2.88 AMMB 176,761,904 2.84 Noble 170,016,574 2.82
Top 10 Holdings as at 31 December 2009Market value
GBP% of Net
AssetsLonmin 180,161,216 4.57 Tullow Oil 177,586,500 4.51 Unilever 169,589,250 4.30 Sims 161,284,689 4.09 Eramet 156,165,915 3.96 Imerys 146,065,070 3.71 Johnson Matthey 131,962,844 3.35 Fraser and Neave 128,584,664 3.26 Colgate–Palmolive 125,332,654 3.18 Constellation Brands 121,439,289 3.08
83
PRULINK CURRENCY INCOME FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
138,642,872 PRU Income X Fund 90,533,796 100.01
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Currency Income Fund invests SGD 90,533,796, equivalent to 100.01% of its net asset value, in PRU Income X Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Currency Income Fund invests SGD 90,533,796, equivalent to 100.01% of its net asset value, in PRU Income X Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 10,940,827
Annualised Expense Ratio*2010: 1.65% 2009: 1.69%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 5.15% 2009: 6.07%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
84
PRU INCOME X FUND
Top 10 Holdings as at 31 December 2010Market value
SGD% of Net
AssetsSingapore Treasury Bill Series 91 06/01/2011 12,000,000 9.00 Singapore Treasury Bill Series 91 27/01/2011 9,998,000 7.50 National Agricultural Co EMTN 1.5% 20/07/2011 6,542,132 4.90 Singapore Treasury Bill Series 90 02/02/2011 5,798,260 4.35 General Electric Cap Corporation GMTN 3.485% 08/03/2012 5,133,001 3.85 SMRT Corporation Limited Series DMTN 3.27% 14/12/2011 5,120,999 3.84 Capitacommercial Trust MTN 3.15% 24/01/2011 5,073,227 3.80 Hyundai Capital Services Inc Series GMTN 2.65% 26/02/2011 5,047,616 3.78 Export–Import Bank of Korea EMTN 2% 14/06/2011 5,012,082 3.76 SP Powerassets Limited EMTN FRN 27/04/2012 4,733,637 3.55
Top 10 Holdings as at 31 December 2009Market value
SGD% of Net
AssetsSingapore Treasury Bill Series 91 04/02/2010 19,990,691 12.16 CMT MTN Pte Ltd MTN 3.25% 01/04/2010 12,134,138 7.38 BNP Paribas EMTN 4.88% 22/03/2010 10,194,136 6.20 ANZ National (International) Limited EMTN 3.22% 08/07/2010 10,176,448 6.19 HK Land Treasury SG 3.01% 04/10/2010 10,166,465 6.19 CCT MTN Pte Ltd Series MTN 3.05% 17/03/2010 10,112,745 6.15 BNZ International Funding Limited GMTN 3.24% 28/07/2010 8,166,052 4.97 National Agricultural Co GMTN 3.3% 18/08/2010 6,367,371 3.87 CCT MTN Pte Ltd Series MTN 3.85% 20/08/2010 5,119,185 3.11 Shinhan Bank EMTN 3.78% 17/06/2010 5,036,317 3.06
Annualised Expense Ratio*2010: 1.65% 2009: 1.69%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 56.86% 2009: 31.65%
85
PRULINK GLOBAL PROPERTY SECURITIES FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
3,131 Lasalle Investment Management Securities – Global Property Securities Fund
85,990,531 100.08
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Global Property Securities Fund invests SGD 85,990,531, equivalent to 100.08% of its net asset value, in Lasalle Investment Management Securities – Global Property Securities Fund.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 7,954,136
Annualised Expense Ratio*2010: 1.93% 2009: 1.92%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 2.63% 2009: 5.88%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
86
LASALLE INvESTMENT MANAGEMENT SECURITIES – GLOBAL PROPERTY SECURITIES
Top 10 Holdings as at 31 December 2010Market value
EUR% of Net
AssetsSimon Property 3,621,969 6.90Westfield Group 2,696,889 5.14Avalonbay Communities 2,191,998 4.18Public Storage 2,073,496 3.95Vornado Realty 1,857,901 3.54Unibail–Rodamco 1,691,196 3.22Boston Properties 1,555,775 2.96Equity Residential 1,545,160 2.94Ventas Inc 1,539,505 2.93GPT Group 1,387,494 2.64
Top 10 Holdings as at 31 December 2009Market value
EUR% of Net
AssetsWestfield Group 3,043,873 6.83Simon Property 2,791,261 6.26Unibail–Rodamco 2,353,147 5.28Avalonbay Communities 1,789,336 4.02Vornado Realty Trust 1,596,574 3.58Public Storage 1,502,618 3.37Stockland 1,462,881 3.28Ventas Inc 1,332,924 2.99Dexus Property 1,151,637 2.58Equity Residential 1,131,665 2.54
Annualised Expense Ratio*2010: 1.24% 2009: 1.25%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 59.32% 2009: 67.96%
87
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK GLOBAL LEADERS FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
4,665,265 PRU Global Leaders Fund 4,035,454 98.58
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Global Leaders Fund invests SGD 4,035,454, equivalent to 98.58% of its net asset value, in PRU Global Leaders Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Global Leaders Fund invests SGD 4,035,454, equivalent to 98.58% of its net asset value, in PRU Global Leaders Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 358,984 344,203
Annualised Expense Ratio*2010: 1.95% 2009: 1.95%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 22.63% 2009: 29.34%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
88
PRU GLOBAL LEADERS FUND
PRU Global Leaders Fund is a feeder fund, which feeds into Euro Class A shares of the M&G Investment Funds – M&G Global Leaders Fund, domiciled in the United Kingdom.
Annualised Expense Ratio*2010: 1.95% 2009: 1.95%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 23.12% 2009: 29.08%
M&G GLOBAL LEADERS FUND IN EURO CLASS A SHARES
Top 10 Holdings as at 31 December 2010Market value
GBP% of Net
AssetsMicrosoft 30,777,662 2.68 Samsung Electronic 28,871,153 2.67 eBay 27,866,443 2.46 Citigroup 27,253,969 2.41 Pfizer 27,057,471 2.39 Anadarko Petroleum 26,269,953 2.31 Hutchison Whampoa 25,398,099 2.28 Kon DSM 25,234,064 2.22 Qualcomm 24,146,916 2.21 Astellas Pharmaceuticals 23,930,779 2.06
Top 10 Holdings as at 31 December 2009Market value
GBP% of Net
AssetsMicrosoft 27,898,505 2.84 Pfizer 23,531,228 2.39 HSBC Holdings 23,174,542 2.36 JP Morgan Chase 22,806,818 2.32 Merck 22,789,217 2.32 Wells Fargo 21,766,669 2.21 Vodafone Group 21,637,814 2.20 Samsung Electronic Pref 20,916,746 2.13 Astellas Pharmaceuticals 20,717,926 2.11 Kon DSM 20,101,575 2.04
89
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK ASIAN INFRASTRUCTURE EQUITY FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
11,690,387 PRU Asian Infrastructure Equity Fund 11,596,864 98.44
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Asian Infrastructure Equity Fund invests SGD 11,596,864, equivalent to 98.44% of its net asset value, in PRU Asian Infrastructure Equity Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Asian Infrastructure Equity Fund invests SGD 11,596,864, equivalent to 98.44% of its net asset value, in PRU Asian Infrastructure Equity Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 4,038,807 1,081,144
Annualised Expense Ratio*2010: 1.85% 2009: 2.03%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 10.15% 2009: 26.00%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
90
PRU ASIAN INFRASTRUCTURE EQUITY FUND
PRU Asian Infrastructure Equity Fund is a feeder fund which feeds into the Luxembourg–domiciled International Opportunities Funds – Asian Infrastructure Equity Fund Class C.
Annualised Expense Ratio*2010: 1.87% 2009: 2.00%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 27.11% 2009: 26.07%
INTERNATIONAL OPPORTUNITIES FUNDS – ASIAN INFRASTRUCTURE EQUITY FUND CLASS C
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsChina Mobile Ltd 5,328,315 5.77 POSCO 4,391,110 4.75 CNOOC Ltd 4,345,995 4.70 Reliance Industries Ltd 4,145,608 4.49 China Petroleum & Chemical 3,907,048 4.23 China Shenhua Energy Co 3,694,846 4.00 Gail Ind Ltd 3,207,767 3.47 Sembcorp 3,030,265 3.28 China Steel Corp 2,541,197 2.75 Korea Electric Power Corp 2,373,636 2.57
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsChina Mobile Ltd 4,420,355 4.47 China Petroleum & Chemica 3,637,635 3.68 Reliance Industries Ltd 3,594,422 3.63 POSCO 3,360,463 3.40 Korea Electric Power Corp 3,273,611 3.31 China Railway Group Ltd 3,248,187 3.28 China Shenhua Energy Co 2,908,522 2.94 CNOOC Ltd 2,882,394 2.91 Jiangsu Express Co Ltd 2,825,433 2.85 Sinotruk Hong Kong Ltd 2,680,373 2.71
91
PRULINK GLOBAL MARKET NAvIGATOR FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
2,029,809 PRU Global Positioning Strategy Fund 1,948,617 98.48
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Global Market Navigator Fund invests SGD 1,948,617, equivalent to 98.48% of its net asset value, in PRU Global Positioning Strategy Fund.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Global Market Navigator Fund invests SGD 1,948,617, equivalent to 98.48% of its net asset value, in PRU Global Positioning Strategy Fund.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD Nil 360,611
Annualised Expense Ratio*2010: 2.63% 2009: 2.48%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 12.57% 2009: 29.54%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
92
PRU GLOBAL POSITIONING STRATEGY FUND
PRU Global Positioning Strategy Fund is a feeder fund which feeds into the Luxembourg–domiciled International Opportunities Funds – Global Market Navigator.
Annualised Expense Ratio*2010: 2.62% 2009: 2.40%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 36.03% 2009: 36.61%
INTERNATIONAL OPPORTUNITIES FUNDS – GLOBAL MARKET NAvIGATOR
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsIshares Iboxx $ Investment Grade Corporate Bond Fund 2,190,402 10.37 Ishares FTSE 100 2,184,834 10.35 I–Shares Barclays 20+ Year Credit Bond Fund 1,942,074 9.20 Philippine 8.5% 03/03/2011 1,309,018 6.20 Mexco ST 8.5% 31/05/2029 1,136,559 5.38 Russian 12.75% 24/06/2028 868,750 4.11 I–share IBX Citigroup 423,150 2.00 S&P 500 Emini 52,313 0.25Tokyo Price Index 14,846 0.07SPI 200 (3,970) -0.02
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsIshares Iboxx $ Investment Grade Corporate Bond Fund 4,266,870 18.75 I–Shares Barclays 1-3 Year Credit Bond Fund 2,232,130 9.81 Korea Treasury Bond 5.5% 10/06/2011 1,757,685 7.72 Philippine Government 8.5% 03/03/2011 1,350,069 5.93 Mexico Government Bond 8.5% 31/05/2029 1,290,627 5.67 Ishares FTSE 100 1,180,031 5.18 Indonesia Gov Bond 10% 15/09/2024 1,114,015 4.89 Brazil Nota Do Tesouro Nacional 10% 01/01/2017 1,040,683 4.57 Russia Eurobond 12.75% 24/06/2028 1,017,000 4.47 Hellenic Republic Government 6% 19/07/2019 726,354 3.19
93
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK ASIAN INCOME FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Singapore
659,503 International Opportunities Funds – Asian Equity Income Fund Class Dd
13,085,215 96.37
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Asian Income Fund invests SGD 13,085,215, equivalent to 96.37% of its net asset value, in International Opportunities Funds – Asian Equity Income Fund Class Dd.
BorrowingsNot applicable
Related Party Transactions
(i) PruLink Asian Income Fund invests SGD 13,085,215, equivalent to 96.37% of its net asset value, in International Opportunities Funds – Asian Equity Income Fund Class Dd. Some directors of the International Opportunities Funds, an open–ended investment company registered in Luxembourg, are also directors of Prudential Assurance Company Singapore (Pte) Ltd.
(ii) Fund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 9,387,210 301,779
Annualised Expense Ratio*2010: 1.80% 2009: 1.88%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 14.35% 2009: 12.70%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
94
INTERNATIONAL OPPORTUNITIES FUNDS – ASIAN EQUITY INCOME FUND CLASS DD
Top 10 Holdings as at 31 December 2010 Market value
USD% of Net
AssetsNational Australia Bank 392,746 2.87BHP Billiton Ltd 392,505 2.87Bank of China Ltd 383,830 2.80Industrial and Commercial Bank of China 373,572 2.73Taiwan Semiconductor Manufacturing 357,955 2.61CNOOC Ltd 334,490 2.44Macquarie Group Ltd 299,404 2.19Telstra Corp Ltd 297,991 2.18China Mobile Ltd 273,120 1.99Indo Tambangraya Megah PT 270,366 1.97
Top 10 Holdings as at 31 December 2009 Market value
USD% of Net
AssetsTaiwan Semiconductor Manufacturing 231,897 3.81Australia and New Zealand Banking Group 228,754 3.76Bank of China Ltd 206,910 3.40Industrial and Commercial Bank of China 192,682 3.17QBE Insurance Group Ltd 173,474 2.85China Mobile Ltd 169,110 2.78Commonwealth Bank of Australia 167,997 2.76Westpac Banking Corp 152,869 2.51China Petroleum & Chemica 144,365 2.37Macquarie Group Ltd 139,642 2.30
Annualised Expense Ratio*2010: 0.28% 2009: 0.71%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 37.92% 2009: 47.23%
95
SCHEDULE OF INvESTMENTSAs at 31 December 2010
PRULINK EMERGING MARKET INCOME BOND FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
5,962,132 Schroder ISF Emerging Market Debt – Absolute Return SGD Hedged A Dis
55,447,829 97.70
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Emerging Market Income Bond Fund invests SGD 55,447,829, equivalent to 97.70% of its net asset value, in Schroder ISF Emerging Market Debt – Absolute Return SGD Hedged A Dis.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 39,079,783 2,246,985
Annualised Expense Ratio*2010: 1.99% 2009: 1.88%
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 5.38% 2009: 1.00%
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
96
SCHRODER ISF EMERGING MARKET DEBT – ABSOLUTE RETURN SGD HEDGED A DIS
Top 10 Holdings as at 31 December 2010Market value
USD% of Net
AssetsPoland Government Bond 4.75% 25/04/2012 329,143,508 3.57Mexican Cetes 0% 17/11/2011 326,377,596 3.54Mexico Government Bond 0% 28/07/2011 292,264,684 3.17South Africa Government Bond 7.5% 15/01/2014 252,619,947 2.74United States Treasury Bills 0% 07/04/2011 242,478,271 2.63Czech Government Bond 4.1% 11/04/2011 233,258,565 2.53Singapore Government Bond 3.625% 01/07/2011 231,414,623 2.51United States Treasury Bills 0% 06/01/2011 212,053,241 2.30United States Treasury Bills 0% 03/02/2011 201,911,564 2.19United States Treasury Bills 0% 10/02/2011 201,911,564 2.19
Top 10 Holdings as at 31 December 2009Market value
USD% of Net
AssetsU.S. Treasury 0% 22/04/2010 441,635,002 7.44Poland Government Bond 6% 24/11/2010 272,460,304 4.59U.S. Treasury 0% 29/04/2010 259,401,204 4.37U.S. Treasury 0% 11/03/2010 254,058,845 4.28Singapore Government Bond 3.625% 01/07/2011 216,068,737 3.64U.S. Treasury 0% 10/06/2010 203,009,638 3.42U.S. Treasury 0% 27/05/2010 176,297,843 2.97U.S. Treasury 0% 17/06/2010 155,522,003 2.62U.S. Treasury 0% 15/04/2010 150,773,240 2.54U.S. Treasury 0% 20/05/2010 150,773,240 2.54
Annualised Expense Ratio*2010: 2.02% 2009: 2.03%
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 105.20% 2009: 63.01%
97
PRULINK GREATER CHINA FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
2,510,466 Schroder International Selection Fund – Greater China C Acc USD
136,782,518 99.95
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Greater China Fund invests SGD 136,782,518, equivalent to 99.95% of its net asset value, in Schroder International Selection Fund – Greater China C Acc USD.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 47,369,040 23,573,940
Annualised Expense Ratio*2010: 1.86% 2009: –
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 15.89% 2009: –
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
98
SCHRODER INTERNATIONAL SELECTION FUND – GREATER CHINA C ACC USD
Top 10 Holdings as at 31 December 2010 ***Market value
USD% of Net
AssetsChina Mobile (Hong Kong) Ltd 101,065,934 5.88Taiwan Semiconductor Manufacturing Co Ltd 81,471,518 4.74 Hon Hai Precision Ind Co Ltd 69,439,859 4.04Industrial & Commercial Bank of China (Asia) Ltd 54,829,988 3.19CNOOC Ltd 48,470,397 2.82China Construction Bank 41,423,282 2.41Chunghwa Telecom Co Ltd 38,501,308 2.24Swire Pacific 37,126,261 2.16Jardine Matheson Holding Ltd 35,923,095 2.09Cheung Kong (Holdings) Ltd 35,579,334 2.07
Annualised Expense Ratio*2010: 1.34% 2009: –
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio**2010: 74.64% 2009: –
** The turnover ratio is calculated based on the lesser of purchases or sales expressed as a percentage over average net asset value.
*** Fund was launched on 5 November 2009 hence no comparative figures are presented.
99
PRULINK GEMM RESOURCES FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
1,309,258 JPMorgan Funds – Global Natural Resources Equity C (Acc) USD Share Class
29,245,766 97.61
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink GEMM Resources Fund invests SGD 29,245,766, equivalent to 97.61% of its net asset value, in JPMorgan Funds – Global Natural Resources Equity C (Acc) USD Share Class.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.5% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 27,925,213 1,272,229
Annualised Expense Ratio*2010: 1.81% 2009: –
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 22.98% 2009: –
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
100
jPMORGAN FUNDS – GLOBAL NATURAL RESOURCES EQUITY C (ACC) USD SHARE CLASS
Top 10 Holdings as at 31 December 2010 ***Market value
USD% of Net
AssetsRio Tinto 169,577,785 3.60 Kinross Gold 117,671,515 2.50 Pacific Rubiales Energy 115,958,835 2.46 Xstrata 114,837,234 2.44 Anglo American 101,177,219 2.15 BHP Billiton 82,528,679 1.75 Freeport–Mcmoran Copper 77,578,142 1.65 Silver Wheaton 67,787,892 1.44 Barrick Gold 61,465,535 1.30 Semafo 61,287,921 1.30
Annualised Expense Ratio*2010: 1.05% 2009: –
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio**2010: Nil 2009: –
** Portfolio Turnover Ratio is an indicator of the relevance of the additional costs incurred by a fund when buying and selling investments according to its investment policy and is calculated in accordance with the guidelines dated 16 May 2008 issued by the Swiss Fund Association as outlined below: (Total securities’ purchase and sales – total subscriptions and redemptions of Sub–Fund shares)/Average net Sub–Fund assets in Sub–Fund currency.
The Portfolio Turnover Ratio is expressed as a percentage and in the case the outcome of the calculation is negative, a zero value is published.
*** Fund was launched on 20 January 2010 hence no comparative figures are presented.
101
PRULINK SINGAPORE GROWTH FUND
Number of Shares
Investment Funds Market value SGD
% of Net Assets
Luxembourg
25,520,516 Aberdeen Fund – Singapore Equity Fund SGD Share Class
110,284,358 95.11
Exposure to DerivativesNot applicable
Investments in Collective Investment Schemes
PruLink Singapore Growth Fund invests SGD 110,284,358, equivalent to 95.11% of its net asset value, in Aberdeen Fund – Singapore Equity Fund SGD Share Class.
BorrowingsNot applicable
Related Party TransactionsFund management charge of 1.3% per annum paid to Prudential Assurance Company Singapore (Pte) Ltd. This charge is included as part of unrealised appreciation/(depreciation) in value of underlying investments as shown in the Capital and Income Account.
Total Subscriptions and Redemptions for the year ended 31 December 2010Subscriptions Redemptions
SGD 114,911,792 1,407,987
Annualised Expense Ratio*2010: 1.58% 2009: –
* The expense ratio does not include (where applicable) charges for insurance coverage, brokerage and other transaction costs, performance fee, foreign exchange gains or losses, front or back end loads arising from the purchase or sale of collective investment schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: Nil 2009: –
Any other material information that will adversely impact the valuation of the fundNil
Soft Dollar CommissionNot applicable
SCHEDULE OF INvESTMENTSAs at 31 December 2010
102
ABERDEEN FUND – SINGAPORE EQUITY FUND SGD SHARE CLASS
Top 10 Holdings as at 30 September 2010**Market value
SGD% of Net
AssetsOversea–Chinese Banking Corporation 25,405,498 9.60 Jardine Strategic Holdings 23,779,680 9.00 Fraser & Neave 16,846,030 6.40 United Overseas Bank 16,464,501 6.20 City Developments 13,672,800 5.20 Singapore Telecommunications Ltd 13,328,636 5.00 Keppel Corporation 12,525,500 4.70 Hong Leong Finance 10,973,696 4.20 Wheelock Properties 10,530,000 4.00 Singapore Technologies Engineering 10,497,200 4.00
Annualised Expense Ratio*2010: 1.65% 2009: –
* The expense ratio does not include (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received.
Turnover Ratio2010: 4.85% 2009: –
** Fund was launched on 5 July 2010 hence no comparative figures are presented.
Note: Information for the same reporting period as that of the ILP sub–fund is not available.
103
STATEMENT OF ASSETS AND LIABILITIESAs at 31 December 2010
Singapore Managed Fund
Asian Equity Fund
Singapore Cash Fund
$ % $ % $ %
Equity Securities 2,299,790,814 67.35 1,039,435,380 99.46 – 0.00Debt Securities 959,722,224 28.10 – 0.00 82,729,727 59.66Investments in Funds 138,354,789 4.05 – 0.00 – 0.00
Value of Investments 3,397,867,827 99.50 1,039,435,380 99.46 82,729,727 59.66
OTHER ASSETSInterest bearing deposits and bank balances 4,698,294 0.14 5,186,397 0.50 56,729,517 40.91Accrued and outstanding interest and dividends 15,066,609 0.44 29,722 0.01 524,316 0.38Other assets 23,740,055 0.70 788,865 0.07 9,136 0.01
Total Assets 3,441,372,785 100.78 1,045,440,364 100.03 139,992,696 100.96
LIABILITIESOther liabilities (26,437,262) -0.78 (360,625) -0.03 (1,332,185) -0.96
value of Fund as at 31 December 2010 3,414,935,523 100.00 1,045,079,739 100.00 138,660,511 100.00
Global Equity Fund
Global Bond Fund
Global Managed Fund
$ % $ % $ %
Debt Securities – 0.00 85,176,239 98.29 – 0.00Investments in Funds 32,118,856 99.96 – 0.00 93,107,133 100.03
Value of Investments 32,118,856 99.96 85,176,239 98.29 93,107,133 100.03
OTHER ASSETSInterest bearing deposits and bank balances 56,880 0.18 694,492 0.80 44,609 0.05Accrued and outstanding interest and dividends – 0.00 1,117,949 1.29 – 0.00Other assets 18,259 0.05 355,783 0.41 54,326 0.06
Total Assets 32,193,995 100.19 87,344,463 100.79 93,206,068 100.14
LIABILITIESOther liabilities (62,242) -0.19 (688,354) -0.79 (127,126) -0.14
value of Fund as at 31 December 2010 32,131,753 100.00 86,656,109 100.00 93,078,942 100.00
The accompanying notes form an integral part of these financial statements.
104
STATEMENT OF ASSETS AND LIABILITIESAs at 31 December 2010
Global TechnologyFund
Pan EuropeanFund
Protected Global TitansFund
$ % $ % $ %
Investments in Funds 79,494,472 100.02 37,249,346 100.06 11,679,643 100.12
Value of Investments 79,494,472 100.02 37,249,346 100.06 11,679,643 100.12
OTHER ASSETSInterest bearing deposits and bank balances 44,214 0.06 54,393 0.15 308 0.00Accrued and outstanding interest and dividends – 0.00 – 0.00 – 0.00Other assets 763 0.00 64,842 0.17 10,551 0.09
Total Assets 79,539,449 100.08 37,368,581 100.37 11,690,502 100.21
LIABILITIESOther liabilities (59,972) -0.08 (142,328) -0.37 (24,511) -0.21
value of Fund as at 31 December 2010 79,479,477 100.00 37,226,253 100.00 11,665,991 100.00
Asian Reach ManagedFund
China–IndiaFund
Emerging MarketsFund
$ % $ % $ %
Investments in Funds 750,887,195 99.94 1,254,982,077 99.91 252,498,100 99.91
Value of Investments 750,887,195 99.94 1,254,982,077 99.91 252,498,100 99.91
OTHER ASSETSInterest bearing deposits and bank balances 982,495 0.13 1,838,549 0.15 467,934 0.20Accrued and outstanding interest and dividends – 0.00 – 0.00 – 0.00Other assets 327,585 0.04 622,948 0.05 289,879 0.10
Total Assets 752,197,275 100.11 1,257,443,574 100.11 253,255,913 100.21
LIABILITIESOther liabilities (833,456) -0.11 (1,361,901) -0.11 (537,266) -0.21
value of Fund as at 31 December 2010 751,363,819 100.00 1,256,081,673 100.00 252,718,647 100.00
The accompanying notes form an integral part of these financial statements.
105
AmericaFund
International BondFund
Adapt 2015Fund
$ % $ % $ %
Investments in Funds 7,819,546 99.82 17,156,556 100.00 46,978,695 94.37
Value of Investments 7,819,546 99.82 17,156,556 100.00 46,978,695 94.37
OTHER ASSETSInterest bearing deposits and bank balances 9,434 0.12 50,729 0.31 2,567,616 5.16Accrued and outstanding interest and dividends – 0.00 – 0.00 – 0.00Other assets 117,246 1.49 31,410 0.17 362,555 0.72
Total Assets 7,946,226 101.43 17,238,695 100.48 49,908,866 100.25
LIABILITIESOther liabilities (112,384) -1.43 (81,594) -0.48 (122,123) -0.25
value of Fund as at 31 December 2010 7,833,842 100.00 17,157,101 100.00 49,786,743 100.00
Adapt 2025Fund
Adapt 2035Fund
Global BasicsFund
$ % $ % $ %
Investments in Funds 232,505,016 99.33 52,377,568 98.94 329,123,316 100.00
Value of Investments 232,505,016 99.33 52,377,568 98.94 329,123,316 100.00
OTHER ASSETSInterest bearing deposits and bank balances 535,176 0.23 473,579 0.89 – 0.00Accrued and outstanding interest and dividends – 0.00 – 0.00 – 0.00Other assets 1,349,269 0.58 245,284 0.47 389,822 0.12
Total Assets 234,389,461 100.14 53,096,431 100.30 329,513,138 100.12
LIABILITIESOther liabilities (319,789) -0.14 (157,144) -0.30 (384,473) -0.12
value of Fund as at 31 December 2010 234,069,672 100.00 52,939,287 100.00 329,128,665 100.00
The accompanying notes form an integral part of these financial statements.
STATEMENT OF ASSETS AND LIABILITIESAs at 31 December 2010
106
STATEMENT OF ASSETS AND LIABILITIESAs at 31 December 2010
Currency IncomeFund
Global Property SecuritiesFund
Global LeadersFund
$ % $ % $ %
Investments in Funds 90,533,796 100.01 85,990,531 100.08 4,035,454 98.58
Value of Investments 90,533,796 100.01 85,990,531 100.08 4,035,454 98.58
OTHER ASSETSInterest bearing deposits and bank balances 135,797 0.15 21,678 0.03 83,457 2.04Accrued and outstanding interest and dividends – 0.00 – 0.00 – 0.00Other assets 254,235 0.28 364,407 0.42 25,645 0.63
Total Assets 90,923,828 100.44 86,376,616 100.53 4,144,556 101.25
LIABILITIESOther liabilities (402,434) -0.44 (456,206) -0.53 (51,028) -1.25
value of Fund as at 31 December 2010 90,521,394 100.00 85,920,410 100.00 4,093,528 100.00
Asian Infrastructure Equity Fund
Global Market Navigator Fund
Asian IncomeFund
$ % $ % $ %
Investments in Funds 11,596,864 98.44 1,948,617 98.48 13,085,215 96.37
Value of Investments 11,596,864 98.44 1,948,617 98.48 13,085,215 96.37
OTHER ASSETSInterest bearing deposits and bank balances 323,615 2.75 35,063 1.77 1,000,743 7.37Accrued and outstanding interest and dividends – 0.00 – 0.00 – 0.00Other assets 54,126 0.45 10,997 0.56 495,713 3.65
Total Assets 11,974,605 101.64 1,994,677 100.81 14,581,671 107.39
LIABILITIESOther liabilities (193,506) -1.64 (15,932) -0.81 (1,003,972) -7.39
value of Fund as at 31 December 2010 11,781,099 100.00 1,978,745 100.00 13,577,699 100.00
The accompanying notes form an integral part of these financial statements.
107
Emerging Market Income Bond Fund
Greater China Fund
GEMM ResourcesFund*
$ % $ % $ %
Investments in Funds 55,447,829 97.70 136,782,518 99.95 29,245,766 97.61
Value of Investments 55,447,829 97.70 136,782,518 99.95 29,245,766 97.61
OTHER ASSETSInterest bearing deposits and bank balances 828,710 1.46 184,605 0.13 2,265,150 7.56Accrued and outstanding interest and dividends 970,680 1.71 – 0.00 – 0.00Other assets 335,988 0.59 484,672 0.36 351,729 1.18
Total Assets 57,583,207 101.46 137,451,795 100.44 31,862,645 106.35
LIABILITIESOther liabilities (828,710) -1.46 (600,112) -0.44 (1,901,737) -6.35
value of Fund as at 31 December 2010 56,754,497 100.00 136,851,683 100.00 29,960,908 100.00
Singapore Growth
Fund** $ %
Investments in Funds 110,284,358 95.11
Value of Investments 110,284,358 95.11
OTHER ASSETSInterest bearing deposits and bank balances 12,288,318 10.60Accrued and outstanding interest and dividends – 0.00Other assets 2,201,314 1.89
Total Assets 124,773,990 107.60
LIABILITIESOther liabilities (8,814,272) -7.60
value of Fund as at 31 December 2010 115,959,718 100.00
* Fund was launched on 20 January 2010
** Fund was launched on 5 July 2010
The accompanying notes form an integral part of these financial statements.
STATEMENT OF ASSETS AND LIABILITIESAs at 31 December 2010
108
CAPITAL AND INCOME ACCOUNTFrom 1 January 2010 to 31 December 2010
Singapore ManagedFund
$
Asian EquityFund
$
Singapore CashFund
$
Value of Fund as at 1 January 2010 3,133,016,025 959,896,439 179,793,200
Amounts received by the Fund for creation of units 252,707,617 67,503,399 3,346,462 Amounts paid by the Fund for liquidation of units (234,939,645) (67,446,580) (45,720,236)
Net cash into/ (out of) the Fund 17,767,972 56,819 (42,373,774)
Investment income– Dividend Income 67,848,039 19,608,289 – – Interest Income 30,714,100 4,782 3,170,546 – Other Income – – –
98,562,139 19,613,071 3,170,546 Fund expenses– Management fees (41,432,019) (14,366,097) (515,465)– Other expenses (4,373,397) (3,679,175) (440)
(45,805,416) (18,045,271) (515,905)Net gains/ (losses) on investmentsExchange gain/ (loss) 695,524 (884,581) – Net realised gain/ (loss) on sale of investments 231,083,780 77,597,245 (924,015)Unrealised appreciation/ (depreciation) in value of investments during the year (20,384,501) 6,846,017 (489,541)
211,394,803 83,558,681 (1,413,556)
Increase/ (decrease) in net asset value for the period 281,919,498 85,183,300 (41,132,689)
value of Fund as at 31 December 2010 3,414,935,523 1,045,079,739 138,660,511
Global EquityFund
$
Global BondFund
$
Global ManagedFund
$
Value of Fund as at 1 January 2010 78,596,775 133,359,640 93,060,531
Amounts received by the Fund for creation of units 6,372,262 16,052,637 3,745,638 Amounts paid by the Fund for liquidation of units (49,885,790) (57,919,528) (4,633,657)
Net cash into/ (out of) the Fund (43,513,528) (41,866,891) (888,019)
Investment income– Dividend Income – – 1,177,268 – Interest Income – 3,673,340 – – Other Income 8,936 – –
8,936 3,673,340 1,177,268 Fund expenses– Management fees (619,089) (801,351) (468,178)– Other expenses – (3,589) –
(619,089) (804,940) (468,178)Net gains/ (losses) on investmentsExchange gain/ (loss) 26,123 (1,196) – Net realised gain/ (loss) on sale of investments (7,178,443) (2,622,904) 3,571,973 Unrealised appreciation/ (depreciation) in value of investments during the year 4,810,979 (5,080,940) (3,374,633)
(2,341,341) (7,705,040) 197,340
Increase/ (decrease) in net asset value for the period (46,465,022) (46,703,531) 18,411
value of Fund as at 31 December 2010 32,131,753 86,656,109 93,078,942
The accompanying notes form an integral part of these financial statements.
109
CAPITAL AND INCOME ACCOUNTFrom 1 January 2010 to 31 December 2010
Global TechnologyFund
$
Pan EuropeanFund
$
Protected GlobalTitans Fund
$
Value of Fund as at 1 January 2010 80,971,825 43,892,788 14,964,059
Amounts received by the Fund for creation of units 2,610,367 – 1,879,474 Amounts paid by the Fund for liquidation of units (6,382,550) (4,013,868) (4,739,332)
Net cash into/ (out of) the Fund (3,772,183) (4,013,868) (2,859,858)
Investment income– Dividend Income – – – – Interest Income – – – – Other Income – – –
– – – Fund expenses– Management fees (1,156,621) (575,585) (79,549)– Other expenses – – –
(1,156,621) (575,585) (79,549)Net gains/ (losses) on investmentsExchange gain/ (loss) – – – Net realised gain/ (loss) on sale of investments 1,654,344 (706,385) 586,057 Unrealised appreciation/ (depreciation) in value of investments during the year 1,782,112 (1,370,697) (944,718)
3,436,456 (2,077,082) (358,661)
Increase/ (decrease) in net asset value for the period (1,492,348) (6,666,535) (3,298,068)
value of Fund as at 31 December 2010 79,479,477 37,226,253 11,665,991
Asian Reach ManagedFund
$
China–IndiaFund
$
Emerging MarketsFund
$
Value of Fund as at 1 January 2010 717,703,936 1,200,932,289 242,676,886
Amounts received by the Fund for creation of units 53,667,546 143,154,652 22,811,953 Amounts paid by the Fund for liquidation of units (50,396,191) (156,175,971) (26,114,145)
Net cash into/ (out of) the Fund 3,271,355 (13,021,319) (3,302,192)
Investment income– Dividend Income – – – – Interest Income – – – – Other Income – – –
– – – Fund expenses– Management fees (9,379,024) (18,209,859) (1,993,862)– Other expenses – – –
(9,379,024) (18,209,859) (1,993,862)Net gains/ (losses) on investmentsExchange gain/ (loss) – – (562)Net realised gain/ (loss) on sale of investments 12,109,121 36,821,230 (44,178,345)Unrealised appreciation/ (depreciation) in value of investments during the year 27,658,431 49,559,332 59,516,722
39,767,552 86,380,562 15,337,815
Increase/ (decrease) in net asset value for the period 33,659,883 55,149,384 10,041,761
value of Fund as at 31 December 2010 751,363,819 1,256,081,673 252,718,647
The accompanying notes form an integral part of these financial statements.
110
CAPITAL AND INCOME ACCOUNTFrom 1 January 2010 to 31 December 2010
AmericaFund
$
International Bond Fund
$
Adapt 2015Fund
$
Value of Fund as at 1 January 2010 6,144,382 18,891,144 52,118,511
Amounts received by the Fund for creation of units 2,340,438 1,654,089 573,157 Amounts paid by the Fund for liquidation of units (768,384) (3,059,784) (5,204,435)
Net cash into/ (out of) the Fund 1,572,054 (1,405,695) (4,631,278)
Investment income– Dividend Income – 571,580 – – Interest Income – – 136,826 – Other Income – – –
– 571,580 136,826 Fund expenses– Management fees (52,439) (71,115) (632,822)– Other expenses – – (2,047)
(52,439) (71,115) (634,869)Net gains/ (losses) on investmentsExchange gain/ (loss) – – (240,847)Net realised gain/ (loss) on sale of investments 24,356 (12,515) 6,534,734 Unrealised appreciation/ (depreciation) in value of investments during the year 145,489 (816,298) (3,496,334)
169,845 (828,813) 2,797,553
Increase/ (decrease) in net asset value for the period 1,689,460 (1,734,043) (2,331,768)
value of Fund as at 31 December 2010 7,833,842 17,157,101 49,786,743
Adapt 2025Fund
$
Adapt 2035Fund
$
Global BasicsFund
$
Value of Fund as at 1 January 2010 240,147,107 54,084,603 324,508,359
Amounts received by the Fund for creation of units – – – Amounts paid by the Fund for liquidation of units (17,020,270) (3,310,595) (33,170,999)
Net cash into/ (out of) the Fund (17,020,270) (3,310,595) (33,170,999)
Investment income– Dividend Income – – – – Interest Income 852,000 103,467 – – Other Income – – –
852,000 103,467 – Fund expenses– Management fees (2,792,457) (629,356) (4,638,585)– Other expenses (7,313) (2,104) –
(2,799,770) (631,460) (4,638,585)Net gains/ (losses) on investmentsExchange gain/ (loss) (1,028,540) (275,699) – Net realised gain/ (loss) on sale of investments 12,133,896 916,605 1,922,799 Unrealised appreciation/ (depreciation) in value of investments during the year 1,785,249 2,052,366 40,507,091
12,890,605 2,693,272 42,429,890
Increase/ (decrease) in net asset value for the period (6,077,435) (1,145,316) 4,620,306
value of Fund as at 31 December 2010 234,069,672 52,939,287 329,128,665
The accompanying notes form an integral part of these financial statements.
111
CAPITAL AND INCOME ACCOUNTFrom 1 January 2010 to 31 December 2010
Currency IncomeFund
$
Global PropertySecurities Fund
$
Global LeadersFund
$
Value of Fund as at 1 January 2010 108,284,941 86,249,106 3,992,406
Amounts received by the Fund for creation of units – – 358,984 Amounts paid by the Fund for liquidation of units (10,940,827) (7,954,136) (344,203)
Net cash into/ (out of) the Fund (10,940,827) (7,954,136) 14,781
Investment income– Dividend Income 2,370,648 – – – Interest Income – – – – Other Income – – –
2,370,648 – – Fund expenses– Management fees (1,518,738) (799,228) (61,407)– Other expenses – 13,772 –
(1,518,738) (785,456) (61,407)Net gains/ (losses) on investmentsExchange gain/ (loss) – – – Net realised gain/ (loss) on sale of investments (4,970,144) (9,088,457) (14,451)Unrealised appreciation/ (depreciation) in value of investments during the year (2,704,486) 17,499,353 162,199
(7,674,630) 8,410,896 147,748
Increase/ (decrease) in net asset value for the period (17,763,547) (328,696) 101,122
value of Fund as at 31 December 2010 90,521,394 85,920,410 4,093,528
Asian Infrastructure Equity Fund
$
Global Market Navigator Fund
$
Asian IncomeFund
$
Value of Fund as at 1 January 2010 8,133,690 2,391,588 4,068,698
Amounts received by the Fund for creation of units 4,038,807 – 9,387,210Amounts paid by the Fund for liquidation of units (1,081,144) (360,611) (301,779)
Net cash into/ (out of) the Fund 2,957,663 (360,611) 9,085,431
Investment income– Dividend Income – – 134,641 – Interest Income – – – – Other Income – – –
– – 134,641 Fund expenses– Management fees (139,092) (34,300) (96,660)– Other expenses – – –
(139,092) (34,300) (96,660)Net gains/ (losses) on investmentsExchange gain/ (loss) – – (3,515)Net realised gain/ (loss) on sale of investments 263,096 29,652 (6,243)Unrealised appreciation/ (depreciation) in value of investments during the year 565,742 (47,584) 395,347
828,838 (17,932) 385,589
Increase/ (decrease) in net asset value for the period 3,647,409 (412,843) 9,509,001
value of Fund as at 31 December 2010 11,781,099 1,978,745 13,577,699
The accompanying notes form an integral part of these financial statements.
112
Emerging Market IncomeBond Fund
$
Greater ChinaFund
$
GEMM ResourcesFund*
$
Value of Fund as at 1 January 2010 21,584,425 109,162,711 –
Amounts received by the Fund for creation of units 39,079,783 47,369,040 27,925,213 Amounts paid by the Fund for liquidation of units (2,246,985) (23,573,940) (1,272,229)
Net cash into/ (out of) the Fund 36,832,798 23,795,100 26,652,984 Investment income– Dividend Income 1,144,775 – – – Interest Income – – – – Other Income – – –
1,144,775 – – Fund expenses– Management fees (306,897) (1,190,676) (76,319)– Other expenses – – –
(306,897) (1,190,676) (76,319)Net gains/ (losses) on investmentsExchange gain/ (loss) – – – Net realised gain/ (loss) on sale of investments 267,349 199,949 (118,198)Unrealised appreciation/ (depreciation) in value of investments during the year (2,767,953) 4,884,599 3,502,441
(2,500,604) 5,084,548 3,384,243
Increase/ (decrease) in net asset value for the period 35,170,072 27,688,972 29,960,908
value of Fund as at 31 December 2010 56,754,497 136,851,683 29,960,908
Singapore Growth Fund**
$
Value of Fund as at 1 January 2010 –
Amounts received by the Fund for creation of units 114,911,792 Amounts paid by the Fund for liquidation of units (1,407,987)
Net cash into/ (out of) the Fund 113,503,805
Investment income– Dividend Income – – Interest Income – – Other Income –
– Fund expenses– Management fees (11,108)– Other expenses –
(11,108)Net gains/ (losses) on investmentsExchange gain/ (loss) – Net realised gain/ (loss) on sale of investments 45,447 Unrealised appreciation/ (depreciation) in value of investments during the year 2,421,574
2,467,021
Increase/ (decrease) in net asset value for the period 115,959,718
value of Fund as at 31 December 2010 115,959,718
* Capital and Income Account from 20 January 2010 to 31 December 2010
** Capital and Income Account from 5 July 2010 to 31 December 2010
The accompanying notes form an integral part of these financial statements.
CAPITAL AND INCOME ACCOUNTFrom 1 January 2010 to 31 December 2010
113
NOTES TO THE FINANCIAL STATEMENTS
These notes form an integral part of the financial statements.
1 Units in Issue and Net Asset value
The Units in Issue and the Net Asset Value (which is the bid price) per unit of the PruLink Funds (“the funds”) as at 31 December 2010:
Funds Units in IssueNet Asset
Value per unit
Singapore Managed Fund 987,436,803 S$3.45838Asian Equity Fund 491,309,317 S$2.12713Singapore Cash Fund 103,718,155 S$1.33689Global Equity Fund 36,084,949 S$0.89044Global Bond Fund 64,727,639 S$1.33878Global Managed Fund 80,720,059 S$1.15310Global Technology Fund 146,524,557 S$0.54243Pan European Fund 40,055,118 S$0.92937Protected Global Titans Fund 10,130,201 S$1.15160Asian Reach Managed Fund 437,088,270 S$1.71902China–India Fund 520,335,537 S$2.41398Emerging Markets Fund 185,854,760 S$1.35976America Fund 9,484,209 S$0.82598International Bond Fund 18,468,559 S$0.92898Adapt 2015 Fund 44,444,036 S$1.12021Adapt 2025 Fund 216,430,717 S$1.08149Adapt 2035 Fund 51,048,867 S$1.03703Global Basics Fund 315,816,105 S$1.04215Currency Income Fund 136,314,418 S$0.66406Global Property Securities Fund 173,421,496 S$0.49544Global Leaders Fund 4,971,400 S$0.82341Asian Infrastructure Equity Fund 9,570,595 S$1.23096Global Market Navigator Fund 2,170,010 S$0.91185Asian Income Fund 10,976,044 S$1.23703Emerging Market Income Bond Fund 61,614,496 S$0.92112Greater China Fund 139,173,192 S$0.98331GEMM Resources Fund* 24,392,694 S$1.22827Singapore Growth Fund** 115,796,340 S$1.00141
* GEMM Resources Fund was launched on 20 January 2010
** Singapore Growth Fund was launched on 5 July 2010
114
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2 Summary of Significant Accounting Policies
2.1 Basis of preparation
The financial statements of the Funds are presented in Singapore dollars. The financial statements have been prepared on the historical cost basis, except for investments and derivatives which are measured at fair value.
2.2 Investments
All purchases of investments, which include investment in funds, quoted equities and bonds are recognised on their trade dates, i.e. the date the commitment exists to purchase the investments. The investments are initially recorded at cost, being fair value of the consideration given. The attributable transaction costs are recognised in the Capital and Income Account when incurred. After initial recognition, the investments are subsequently measured at fair value and the unrealised gains or losses on re–measurement to fair value are taken to the Capital and Income Account. The fair value is determined by using open market valuation at the year–end date. All investments of the Funds are valued at the last known transacted prices on 31 December 2010. Unquoted debt securities are valued at the prevailing prices quoted by banks or brokers.
2.3 Derivative financial instruments
Derivative financial instruments are measured at fair value. Changes in fair value are recognised in the Capital and Income Account. Transaction costs incurred in buying and selling derivative instruments are recognised in the Capital and Income Account when incurred. The fair value of derivative financial instruments is determined based on their listed market price, if available, or broker quotes.
2.4 Amounts received by the Funds for creation of units
The amounts received by the Funds comprise the gross premiums received by the Company (after deducting charges which include bid–offer spread) and switches by the policyholders from other funds.
2.5 Amounts paid by the Funds for liquidation of units
The amounts paid by the Funds for liquidation of units comprise of the sale of units in the Funds for the payment of death claims or surrenders and for switches by the policyholders to the other funds.
2.6 Gains/losses from sale of investments
All sales of investments are recognised on their trade date, the date the Fund commits to sell the investments. The cost of disposal of investments is determined on the weighted–average cost basis. Realised gains/losses from the sale of investments are taken to the Capital and Income Account.
115
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2.7 Income and expenses recognition
Income and expenses are accounted for on an accrual basis. Dividend income is recognised in the Capital and Income Account when the right to receive payment is established. Interest income from investments is recognised on an accrual basis, using the effective interest method.
2.8 Foreign currencies
Transactions in foreign currencies are translated into Singapore dollars at the exchange rate at the date of the transaction. Financial assets and liabilities denominated in foreign currencies at the reporting date are retranslated into Singapore dollars at the exchange rate at the reporting date. Foreign currency differences arising on retranslation are recognised in the Capital and Income Account.
116
INDEPENDENT AUDITORS’ REPORTPRUDENTIAL ASSURANCE COMPANY SINGAPORE (PTE) LIMITED
We have audited the accompanying financial statements of the PruLink Funds of Prudential Assurance Company Singapore (Pte) Limited (the Company) which comprise the Statements of Assets and Liabilities as at 31 December 2010, Capital and Income Account for the period from 1 January 2010 (or date of commencement of the respective PruLink Funds, whichever is later) to 31 December 2010, and a summary of significant accounting policies and other explanatory information as set out on pages 103 to 115. The financial statements have been prepared by management based on the accounting policies set out in Note 2 to the financial statements (the stated accounting policies).
Management’s responsibility for the financial statements
Management is responsible for the preparation of these financial statements in accordance with the stated accounting policies, for determining the acceptability of the basis of accounting, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements of the PruLink Funds of the Company for the period from 1 January 2010 (or commencement date of the respective PruLink Funds, whichever is later) to 31 December 2010 are prepared, in all material respects, in accordance with the stated accounting policies.
Basis of accounting and restriction on distribution and use
Without modifying our opinion, we draw attention to Note 2 to the financial statements of the PruLink Funds, which describe the basis of accounting. The financial statements are prepared to assist the Company to comply with MAS Notice 307 Investment-Linked Life Insurance Policies. As a result, the financial statements of the PruLink Funds may not be suitable for another purpose.
As at 31 December 2010
117
Our report is intended solely for the use of the Company and our duties are owed solely to the Company. We do not accept responsibility and we expressly disclaim liability for loss occasioned to any third party acting or refraining from acting as a result of our report.
Other matters
This report relates solely to the financial statements of the PruLink Funds of the Company and does not extend to the financial statements of the Company taken as a whole.
KPMG LLPPublic Accountants andCertified Public Accountants
Singapore11 March 2011
118
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119
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120
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Prudential Assurance Company Singapore (Pte) Limited(Registration No. 199002477Z)
30 Cecil Street #30-01 Prudential Tower Singapore 049712Tel: 1800 333 0333 Fax: 6734 9555 Website: www.prudential.com.sg
Part of Prudential plc
Established in 1848 in the United Kingdom, Prudential plc is now one of the world’s leading
retail financial products and services companies. Prudential Singapore was set up in 1931,
and is a wholly-owned subsidiary of Prudential plc. We offer a comprehensive range of life
insurance and investment-linked products to meet the needs of our customers. To find out
more, contact your Financial Consultant or call our PruCustomer Line at 1800 333 0333
today. Alternatively, you can visit our website at www.prudential.com.sg
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