Fund Objective

The investment objective of the PRU Global Technology Fund is to maximise long-term total 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 give them a strategic advantage in the market. The Manager intends to achieve this investment objective by investing all or substantially all of the assets of the PRU Global Technology Fund into the Luxembourg-domiciled International Opportunities Funds - Global Technology which shares the same investment objective.

Market Overview	As of 01-Aug-2010
Global equities recovered during July after a poor second quarter performance. The technology sector also rallied, reflecting the generally improving macroeconomic data. In such an environment, the Fund rose 2.2% (bid-to-bid basis) in Singapore dollar terms versus its benchmark, MSCI All Countries World Information Technology Index which increased by 4.2%. The best performing sectors were hardware, IT services, and software. In hardware, NetApp continued to take market share within the growth area of data storage as enterprises continue to spend on server and storage facilities. The Underlying Fund’s underweight position in the IT services sector proved beneficial in July as the sector lagged. In software, VMWare experienced a very good quarter; beating estimates as its strong position within the server virtualisation market thanks to companies increased spending. The worst performing sectors were the internet and communications equipment. Within the internet, Vistaprint was disappointing as the company showed a decelerating revenue growth rate and mixed results from its TV advertising campaign. GSI Commerce was also weak, as it reported decelerating growth trends and a slightly worse-than-expected operating margin. Over the month, the fund manager of the Underlying Fund initiated some new positions. These included Brazilian software company Totvs, Taiwanese mobile phone manufacturer HTC and an IT hardware and software distributor Ingram Micro. The fund manager of the Underlying Fund sold the holding in Mediatek as handset sales slowed and its inventory grew during the quarter. Going forward, the fund manager of the Underlying Fund believes the technology sector is well poised to outperform the wider market on account of its cleaner balance sheets and encouraging demand and supply picture.

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