Fund Objective

The investment objective of the PRU Global Positioning Strategy 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 including cash, equities, bonds and currencies. Exposure to each of the asset classes will be primarily 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. The Manager intends to achieve this investment objective by investing all or substantially all of the assets of the PRU Global Positioning Strategy Fund into the IOF - Global Market Navigator which shares the same investment objective. For the avoidance of doubt, the actively managed asset allocation strategy will be implemented by the Manager only at the underlying fund level.

Market Overview	As of 01-Aug-2010
Global equities rebounded strongly in July following weakness in the second half of June. The MSCI AC World index gained in US dollar terms over the month with the UK and Europe ex UK leading the gains. Investor sentiment was boosted by the better-than-expected Europe’s Purchasing Manager Index data and hopes of a shift in Chinese policy. The renewed weakness in US housing and consumer data was offset by the strong quarterly corporate earnings. World government bonds rose in US dollar terms over the month, driven mainly by a stronger euro. Developed government bond yields were generally flat while Asia and emerging markets declined. Credit markets also performed relatively well as credit spreads tightened amid an improvement in investors' risk appetite; US high yield bonds outperformed US investment grade bonds. The Underlying Fund's returns were boosted mainly by its exposure to equity investments, particularly in Europe, Germany and the UK on the back of a rally in global equity markets. The Underlying Fund's bond holdings, namely Mexican local currency and Russian USD government bonds also made significant contributions to the returns. During the month, the fund manager of the Underlying Fund reduced holdings in US equities and correspondingly invested the proceeds into US investment grade bonds given that yields are still attractive relative to US treasuries. Going forward, within equities, the fund manager of the Underlying Fund maintains preference for developed market equities relative to emerging markets and Asia. The fund manager of the Underlying Fund expects macro and general credit conditions to be supportive of investor risk appetite.

  FactSheet (Cash)