Fund Report 10

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.

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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 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

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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

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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

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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.

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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

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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.


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.

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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


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.

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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.

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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.


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

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Before 1 January 2011 From 1 January 2011


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.

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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.

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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.

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Global Equities


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


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%


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




Risk Classification

Broadly Diversified – Higher Risk


PruLink Global Equity Fund 1.62%

MSCI World (Total Return Net) Index 2.50%


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




Risk Classification

Broadly Diversified – Low to Medium Risk


PruLink Global Bond Fund -3.77%

Citigroup World Government Bond Index All Maturities -4.05%


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



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



Risk Classification



PruLink Global Technology Fund 3.05%

MSCI AC World IT Index 1.11%


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




Risk Classification



PruLink Pan European Fund -6.16%

FTSE World Europe (including UK) Index -4.71%


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



Risk Classification


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%


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




Risk Classification Narrowly Focused – Medium to High Risk


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


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


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


Launch Date 21 Jun 2004



Risk Classification



PruLink China-India Fund 5.76%

50% MSCI China Index and 50% MSCI India Index 3.19%


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


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


Launch Date 19 May 2005



Risk Classification



PruLink Emerging Markets Fund 5.51%

MSCI Emerging Markets Total Return Net 8.25%


PruLink Emerging Markets Fund 43.13%

MSCI Emerging Markets Total Return Net 65.00%


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





Risk Classification



PruLink America Fund 2.29%

Standard & Poor’s 500 Index 4.99%


PruLink America Fund -13.05%

Standard & Poor’s 500 Index -8.60%

40

60

80

100

120

140

Price Indexed


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




Risk Classification



PruLink International Bond Fund -1.91%

Barclays Capital Global Aggregate G5 ex MBS Index -4.27%


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





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


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


FUND OBjECTIvE


Fund Details





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




30


FUND OBjECTIvE


Fund Details




Risk ClassificationBroadly Diversified – Higher Risk


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




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




Risk Classification



PruLink Global Basics Fund 12.86%

FTSE Global Basics Composite Index 7.04%


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





Risk Classification

Medium to High Risk


PruLink Currency Income Fund -1.90%

12 Month S$ Fixed Deposit Rate p.a. 0.48%


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



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



Risk Classification



PruLink Global Property Securities Fund 9.44%

UBS Warburg Global Real Estate Investors Index 12.70%


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



Risk Classification



PruLink Global Leaders Fund 2.08%

FTSE World Index 2.87%


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


Launch Date 4 Aug 2008



Risk Classification



PruLink Asian Infrastructure Equity Fund 7.53%

MSCI AC Asia ex-Japan Selected Sectors Index 11.79%


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


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



Risk Classification


Net Investment Return (for period under review – 1 jan 2010 to 31 Dec 2010)PruLink Global Market Navigator Fund -2.11%


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




Risk Classification



PruLink Asian Income Fund 6.79%



PruLink Asian Income Fund 38.45%


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


Launch Date 2 Jul 2009



Risk Classification

Narrowly Focused – Low to Medium Risk


PruLink Emerging Market Income Bond Fund 0.75%

USD 3M Libor (SGD) -8.44%


PruLink Emerging Market Income Bond Fund 5.91%

USD 3M Libor (SGD) -10.98%


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



Risk Classification



PruLink Greater China Fund 2.41%

MSCI Golden Dragon 3.33%


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





Risk Classification



PruLink GEMM Resources Fund N/A

HSBC Gold, Mining & Energy Total Return Net N/A


PruLink GEMM Resources Fund 29.29%

HSBC Gold, Mining & Energy Total Return Net 19.33%


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



Risk Classification



PruLink Singapore Growth Fund N/A

Straits Times Index (STI) N/A


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


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


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


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


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


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


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


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




SGD 67,503,399 67,446,580



Turnover Ratio2010: 46.64% 2009: 52.28%



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.


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.


SGD 6,372,262 49,885,790



Turnover Ratio2010: 70.52% 2009: 15.95%




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


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


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


SGD% of Net

AssetsDebt Securities 85,176,239 98.29 Other Net Assets 1,479,870 1.71


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


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


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


SGD% of Net

Assets

(i) Market value of derivatives Forward Contracts 104,174 0.12%


152,645

(iii) Net gain/(loss) on outstanding derivatives Forward Contracts 104,174

52





SGD 16,052,637 57,919,528



Turnover Ratio2010: 48.97% 2009: 33.29%



53


PRULINK GLOBAL MANAGED FUND

Number of Shares


% of Net Assets

Singapore

79,172,733 Schroder Multi–Asset Revolution Class A SGD Fund

93,107,133 100.03


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.





SGD 3,745,638 4,633,657



Turnover Ratio2010: 108.08% 2009: 25.25%



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


2010: 1.55% 2009: –


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.


55


PRULINK SINGAPORE CASH FUND


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


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


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


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


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






SGD 3,346,462 45,720,236

57



Turnover Ratio2010: 122.99% 2009: 111.23%



58

PRULINK GLOBAL TECHNOLOGY FUND

Number of Shares


% of Net Assets

Singapore

155,262,641 PRU Global Technology Fund 79,494,472 100.02


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.



(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.


SGD 2,610,367 6,382,550



Turnover Ratio2010: 6.25% 2009: 3.81%




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.



Turnover Ratio2010: 9.34% 2009: 5.62%

INTERNATIONAL OPPORTUNITIES FUNDS – GLOBAL TECHNOLOGY FUND


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


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


% of Net Assets

Singapore

40,182,682 PRU Pan European Fund 37,249,346 100.06


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.



(i) PruLink Pan European Fund invests SGD 37,249,346, equivalent to 100.06% of its net asset value, in PRU Pan European Fund.



SGD Nil 4,013,868



Turnover Ratio2010: 4.45% 2009: 4.73%




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%


Turnover Ratio2010: 4.24% 2009: 3.96%

INTERNATIONAL OPPORTUNITIES FUNDS – PAN EUROPEAN FUND


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


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


% of Net Assets

Singapore

10,129,786 PRU Protected Global Titans Fund (S$) 11,679,643 100.12


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$).



(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$).



SGD 1,879,474 4,739,332



Turnover Ratio2010: 22.52% 2009: 15.33%




63

PRU PROTECTED GLOBAL TITANS FUND (S$)


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


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



Turnover Ratio2010: 25.53% 2009: 82.37%

64

PRULINK ASIAN REACH MANAGED FUND

Number of Shares


% of Net Assets

Singapore

435,044,725 PRU Asian Balanced Fund 750,887,195 99.94


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.



(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.



SGD 53,667,546 50,396,191



Turnover Ratio2010: 2.38% 2009: 1.40%


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.


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.



Turnover Ratio2010: 15.36% 2009: 32.54%

INTERNATIONAL OPPORTUNITIES FUNDS – ASIAN EQUITY


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


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


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


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


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


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


% of Net Assets

Singapore

474,294,058 PRU Dragon Peacock Fund 1,254,982,077 99.91


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.



(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.



SGD 143,154,652 156,175,971



Turnover Ratio2010: 5.45% 2009: 7.07%


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.


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


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


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



Turnover Ratio2010: 16.78% 2009: 27.07%

69

PRULINK EMERGING MARKETS FUND

Number of Shares


% of Net Assets

Luxembourg

7,746,278 JPMorgan Funds – Emerging Markets Equity Fund C (Acc) USD Share Class

252,498,100 99.91



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.


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.


SGD 22,811,953 26,114,145



Turnover Ratio2010: 104.44% 2009: 2.58%




70

jPMORGAN FUNDS – EMERGING MARKETS EQUITY FUND C (ACC) USD SHARE CLASS


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


2010: 1.10% 2009: –


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.


71

PRULINK AMERICA FUND

Number of Shares


% of Net Assets

Luxembourg

1,213,062 Fidelity Funds – America Fund 7,819,546 99.82



PruLink America Fund invests SGD 7,819,546, equivalent to 99.82% of its net asset value, in Fidelity Funds – America Fund.




SGD 2,340,438 768,384



Turnover Ratio2010: 23.33% 2009: 34.43%




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



Turnover Ratio2010: 120.89% 2009: 122.30%


73


PRULINK INTERNATIONAL BOND FUND

Number of Shares


% of Net Assets

Luxembourg

18,487,668 Fidelity Funds – International Bond Fund II 17,156,556 100.00



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.




SGD 1,654,089 3,059,784



Turnover Ratio2010: 27.48% 2009: 29.20%



74

FIDELITY FUNDS – INTERNATIONAL BOND FUND II


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


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



Turnover Ratio2010: 163.91% 2009: 231.83%


75


PRULINK ADAPT 2015 FUND

Effective 14 December 2010, PruLink Adapt 2015 Fund feeds into various Schroder funds.

Number of Shares


% 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


SGD% of Net


Forward Contracts 352,848 0.71%


1,054,515

(iii) Net gain/(loss) on outstanding derivatives Forward Contracts

352,848

76


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.





SGD 573,157 5,204,435



Turnover Ratio2010: 103.42% 2009: 15.69%



77



Number of Shares


% of Net Assets


– 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


16,567,158 7.08


34,840,902 14.88


23,120,726 9.88

1,292,231 Schroder Investment Management – ISF Pacific Equity

23,397,224 10.00


13,841,217 5.91


14,043,645 6.00


27,135,972 11.59



19,506,931 Schroder Investment Management – Singapore Fixed Income Fund

23,500,000 10.04




SGD% of Net

Assets

(i) Market value of derivatives Forward Contracts 1,231,690 0.53%


4,274,409


1,231,690


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.




SGD Nil 17,020,270



Turnover Ratio2010: 108.52% 2009: 16.43%



79



Number of Shares


% of Net Assets


– ISF Asian Bond Absolute Return 3,650,442 6.89


5,354,813 10.12


10,445,197 19.73


5,233,181 9.89

347,563 Schroder Investment Management – ISF Pacific Equity

6,292,995 11.89


3,131,275 5.91


5,245,725 9.91


6,141,437 11.60






SGD% of Net


Forward Contracts 236,567 0.45%


613,426


236,567


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.




SGD Nil 3,310,595



Turnover Ratio2010: 106.98% 2009: 15.85%



81

PRULINK GLOBAL BASICS FUND

Number of Shares


% of Net Assets

Singapore

263,509,460 PRU Global Basics Fund 329,123,316 100.00



PruLink Global Basics Fund invests SGD 329,123,316, equivalent to 100.00% of its net asset value, in PRU Global Basics Fund.



(i) PruLink Global Basics Fund invests SGD 329,123,316, equivalent to 100.00% of its net asset value, in PRU Global Basics Fund.



SGD Nil 33,170,999



Turnover Ratio2010: 1.09% 2009: 3.56%




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.



Turnover Ratio2010: 0.82% 2009: 3.07%

M&G GLOBAL BASICS FUND NET ACCUMULATION SHARES IN STERLING CLASS A SHARES


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


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


% of Net Assets

Singapore

138,642,872 PRU Income X Fund 90,533,796 100.01



PruLink Currency Income Fund invests SGD 90,533,796, equivalent to 100.01% of its net asset value, in PRU Income X Fund.



(i) PruLink Currency Income Fund invests SGD 90,533,796, equivalent to 100.01% of its net asset value, in PRU Income X Fund.



SGD Nil 10,940,827



Turnover Ratio2010: 5.15% 2009: 6.07%




84

PRU INCOME X FUND


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


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



Turnover Ratio2010: 56.86% 2009: 31.65%

85

PRULINK GLOBAL PROPERTY SECURITIES FUND

Number of Shares


% of Net Assets

Singapore

3,131 Lasalle Investment Management Securities – Global Property Securities Fund

85,990,531 100.08



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.




SGD Nil 7,954,136



Turnover Ratio2010: 2.63% 2009: 5.88%




86

LASALLE INvESTMENT MANAGEMENT SECURITIES – GLOBAL PROPERTY SECURITIES


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


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



Turnover Ratio2010: 59.32% 2009: 67.96%

87


PRULINK GLOBAL LEADERS FUND

Number of Shares


% of Net Assets

Singapore

4,665,265 PRU Global Leaders Fund 4,035,454 98.58



PruLink Global Leaders Fund invests SGD 4,035,454, equivalent to 98.58% of its net asset value, in PRU Global Leaders Fund.



(i) PruLink Global Leaders Fund invests SGD 4,035,454, equivalent to 98.58% of its net asset value, in PRU Global Leaders Fund.



SGD 358,984 344,203



Turnover Ratio2010: 22.63% 2009: 29.34%



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.



Turnover Ratio2010: 23.12% 2009: 29.08%

M&G GLOBAL LEADERS FUND IN EURO CLASS A SHARES


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


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


PRULINK ASIAN INFRASTRUCTURE EQUITY FUND

Number of Shares


% of Net Assets

Singapore

11,690,387 PRU Asian Infrastructure Equity Fund 11,596,864 98.44



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.



(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.



SGD 4,038,807 1,081,144



Turnover Ratio2010: 10.15% 2009: 26.00%



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.



Turnover Ratio2010: 27.11% 2009: 26.07%

INTERNATIONAL OPPORTUNITIES FUNDS – ASIAN INFRASTRUCTURE EQUITY FUND CLASS C


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


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


% of Net Assets

Singapore

2,029,809 PRU Global Positioning Strategy Fund 1,948,617 98.48



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.



(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.



SGD Nil 360,611



Turnover Ratio2010: 12.57% 2009: 29.54%




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.



Turnover Ratio2010: 36.03% 2009: 36.61%

INTERNATIONAL OPPORTUNITIES FUNDS – GLOBAL MARKET NAvIGATOR


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


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


PRULINK ASIAN INCOME FUND

Number of Shares


% of Net Assets

Singapore

659,503 International Opportunities Funds – Asian Equity Income Fund Class Dd

13,085,215 96.37



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.



(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.



SGD 9,387,210 301,779



Turnover Ratio2010: 14.35% 2009: 12.70%



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



Turnover Ratio2010: 37.92% 2009: 47.23%

95


PRULINK EMERGING MARKET INCOME BOND FUND

Number of Shares


% of Net Assets

Luxembourg

5,962,132 Schroder ISF Emerging Market Debt – Absolute Return SGD Hedged A Dis

55,447,829 97.70



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.




SGD 39,079,783 2,246,985



Turnover Ratio2010: 5.38% 2009: 1.00%



96

SCHRODER ISF EMERGING MARKET DEBT – ABSOLUTE RETURN SGD HEDGED A DIS


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


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



Turnover Ratio2010: 105.20% 2009: 63.01%

97

PRULINK GREATER CHINA FUND

Number of Shares


% of Net Assets

Luxembourg

2,510,466 Schroder International Selection Fund – Greater China C Acc USD

136,782,518 99.95



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.




SGD 47,369,040 23,573,940

Annualised Expense Ratio*2010: 1.86% 2009: –


Turnover Ratio2010: 15.89% 2009: –




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



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


% of Net Assets

Luxembourg

1,309,258 JPMorgan Funds – Global Natural Resources Equity C (Acc) USD Share Class

29,245,766 97.61



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.




SGD 27,925,213 1,272,229



Turnover Ratio2010: 22.98% 2009: –




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



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


% of Net Assets

Luxembourg

25,520,516 Aberdeen Fund – Singapore Equity Fund SGD Share Class

110,284,358 95.11



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.




SGD 114,911,792 1,407,987



Turnover Ratio2010: Nil 2009: –




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



Turnover Ratio2010: 4.85% 2009: –

** Fund was launched on 5 July 2010 hence no comparative figures are presented.


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


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


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



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


105

AmericaFund

International BondFund

Adapt 2015Fund

$ % $ % $ %



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



Adapt 2025Fund

Adapt 2035Fund

Global BasicsFund

$ % $ % $ %



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





106


Currency IncomeFund

Global Property SecuritiesFund

Global LeadersFund

$ % $ % $ %



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



Asian Infrastructure Equity Fund

Global Market Navigator Fund

Asian IncomeFund

$ % $ % $ %



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



107

Emerging Market Income Bond Fund

Greater China Fund

GEMM ResourcesFund*

$ % $ % $ %



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


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



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


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


109


Global TechnologyFund

$

Pan EuropeanFund

$

Protected GlobalTitans Fund

$


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)


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


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


110


AmericaFund

$

International Bond Fund

$

Adapt 2015Fund

$


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)


Adapt 2025Fund

$

Adapt 2035Fund

$

Global BasicsFund

$


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



111


Currency IncomeFund

$

Global PropertySecurities Fund

$

Global LeadersFund

$


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


Asian Infrastructure Equity Fund

$

Global Market Navigator Fund

$

Asian IncomeFund

$


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



112

Emerging Market IncomeBond Fund

$

Greater ChinaFund

$

GEMM ResourcesFund*

$

Value of Fund as at 1 January 2010 21,584,425 109,162,711 –


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


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



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

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119


120


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

Fund Report 10

Documents

Transcript of Fund Report 10