Fund Objective

The investment objective of the PRU Monthly Income Plan is to seek to provide investors with regular income and capital growth by investing: (i) 30% to 70% of its assets into the Luxembourg domiciled International Opportunities Funds - US High Yield Bond; and (ii) 30% to 70% of its assets into the Luxembourg domiciled International Opportunities Funds - Asian Bond. The Fund may in addition, at the Manager’s absolute discretion, invest up to 20% of its assets in any other Asia Pacific investments (including real estate investment trusts, dividend yielding equities and any other sub-funds of the International Opportunities Funds, subject to the prior approval of the Authority where necessary).

Market Overview	As of 01-Aug-2010
The PRU Monthly Income Plan Class A and Class M were up by 3.1% (bid-to-bid basis) and 3.0% (bid-to-bid basis) respectively versus its benchmark’s neutral return. Risk assets performed well in July as investor sentiment was boosted by the better-than-expected Purchasing Managers’ Index (PMI) data from Europe and hopes of a shift in Chinese policy. The renewed weakness in US housing and consumer data were offset by the strong quarterly corporate earnings. Against this positive market backdrop, the USD credit markets enjoyed some good gains over the month. Meanwhile, high yield bonds produced strong gains in July, boosted by better than expected earnings releases and lower volatility. July also brought improved clarity around a number of issues such as financial regulatory reform, the gulf oil spill, and European bank stress tests, which had been plaguing the capital markets for several months. Elsewhere, credit spreads in Asia narrowed in tandem with stock price rises over the month, particularly for high yield credits. On the whole, US dollar credit is no longer extremely attractive with spreads trading close to historical average. Credit markets’ fundamentals have improved as evidenced by declining corporate default rates, a slowdown in rating downgrades, and still healthy availability of investor liquidity and demand for new corporate bond issuances. The fund manager continues to maintain a slightly lower allocation to US high yield bond versus US dollar Asian bond. All the US dollar credit investment continues to be fully currency hedged to Singapore dollar.

  FactSheet (Cash)