Fund Objective

The investment objective of the PRU Dragon Peacock Fund is to maximize 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).

Market Overview	As of 01-Aug-2010
The MSCI India advanced 0.7%1 in July as quarterly earnings results were mixed and did not manage to excite the market. Financials sector led the outperformers followed by materials and information technology services sectors. India's central bank increased rates for a fourth time during the month to reign in high inflation as economic growth is now on a firm track. Meanwhile, the MSCI China Index climbed 4.4%1 in USD terms as all sectors posted positive returns with information technology sector emerging as the best performer followed by materials and industrials sectors. Equities moved higher due to speculation of an easing mortgage policy on the back of slowing economic growth momentum. China’s second-quarter gross domestic product data and other macro indicators such as retail sales, industrial production and fixed-asset investment showed that economic growth momentum has decelerated as monetary policy normalized. The Fund advanced 0.4% (bid-to-bid basis), outperforming its benchmark’s decline of 0.1%. Consumer discretionary stocks were the leading contributors to relative performance on a sector basis. Focus Media Holding and Tata Motors Limited advanced during the month. China information technology stocks also contributed to performance with Sohu.Com Inc. moving higher. Underweight position in HDFC Bank Ltd was the leading detractor from performance in July; its shares moved higher on the back of strong loan growth trajectory, an improvement in asset quality and increasing deposits. Underweight position in Tencent Holdings and overweight position in BYD Company Ltd. also detracted from performance. The fund manager trimmed China Mobile Ltd and added to China Unicom (Hong Kong) Ltd in July. Position in AAC Acoustic Technologies Holdings Inc. was reduced, taking some profits as the stock has outperformed. 1Source: MSCI Barra, as at July 2010

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