INTERNATIONAL OPPORTUNITIES FUNDS

INTERNATIONAL OPPORTUNITIES FUNDSSociété d’Investissement à Capital Variable

Luxembourg

AUDITED ANNUAL REPORT

AS AT DECEMBER 31, 2008

No subscription can be received on the basis of this financial report. Subscriptions are only valid if made on the basis of thecurrent prospectus accompanied by the latest annual report and the most recent semi-annual report, if published thereafter.

Directory, Administration and Management 2

General Information 4

Report of the Board of Directors 5

Report of the Réviseur d’Entreprises 55

Combined Statement of Net Assets 56

Combined Statement of Operations and Changes in Net Assets 64

Statement of Changes in Shares Outstanding 72

Statistics 80

Statement of InvestmentsAsia Pacific Equity(*) 88

Asian Bond 91

Asian Dynamic(*) 97

Asian Equity 99

Asian Equity Income 102

Asian Infrastructure Equity 105

Asian Local Bond 107

Asian Property Securities 112

China Equity 114

Dragon Peacock 115

European Investment Grade Bond 117

Global Market Navigator 126

Global Technology 127

Greater China Equity 129

Hong Kong Equity 131

India Equity 132

Indonesia Equity 133

Japan Dynamic(*) 135

Japan Equity 137

Japan Smaller Companies(*) 139

Korea Equity 141

Latin American Equity(*) 143

Malaysia Equity 145

North America 146

North American Value(*) 149

Pan European 151

Philippines Equity 153

Taiwan Equity 154

Thailand Equity 156

US Bond(*) 157

US Corporate Bond(*) 164

US High Investment Grade Bond 176

US High Yield Bond 181

US Investment Grade Bond 186

Vietnam Equity 192

World Value Equity 193

Notes to the Financial Statements 199

(*) Not authorized in Hong Kong and not available to Hong Kong residents.

INTERNATIONAL OPPORTUNITIES FUNDS

TABLE OF CONTENTS

1

Board of Directors and Officers

Chairman Mr. Stephen Paul BICKELLRegional Risk DirectorPrudential Corporation Asia, Hong Kong

Directors Mr. Suraj MISHRARegional Head of Business Development – PCA FundsPrudential Asset Management (Singapore) Limited

Mr. Peter Martin LLOYDChief Actuary, AsiaPrudential Corporation Asia, Hong Kong

Mr. Guy STRAPPRegional Head of Investment Management (Asia) andChief Executive OfficerPrudential Asset Management (Hong Kong) Limited

Mr. Kevin GIBSONChief Investment Officer, Japanese EquitiesPrudential Asset Management (Singapore) Limited

Mr. Manuel HAUSERIndependent DirectorGrand Duchy of Luxembourg

Day-to-day Managers Mr. Manuel HAUSERIndependent day-to-day ManagerGrand Duchy of Luxembourg

Mr. SWAMINATHAN B. (since April 24, 2008)Regional COO – PCA FundsPrudential Fund Management Services Private LimitedSingapore

Ms. Chandrima DAS (until April 24, 2008)Director, Offshore Funds PlatformPrudential Fund Management Services Private LimitedSingapore


DIRECTORY, ADMINISTRATION AND MANAGEMENT

2

Administration and Management

Registered Office Aerogolf Center1A, HoehenhofL-1736 SenningerbergGrand Duchy of Luxembourg

Investment Manager Prudential Asset Management (Singapore) Limited30 Cecil Street, #20-01 Prudential TowerSingapore 049712

Investment Sub-Managers For the European Investment Grade Bond, the Pan Europeanand the World Value Equity Sub-Funds,M&G Investment Management LimitedLaurence Pountney HillLondon EC4R OHHUnited Kingdom

For the Global Technology Sub-FundHenderson Global Investors Limited4 BroadgateLondon EC2M 2DAUnited Kingdom

For the China Equity, the Greater China Equity and the Hong KongEquity Sub-Funds,Prudential Asset Management (Hong Kong) LimitedSuite 1701, Two Exchange Square,Central,Hong Kong

For the North America, the North American Value, the US Bond, the US CorporateBond, the US High Investment Grade Bond, the US Investment Grade Bond andthe US High Yield Bond Sub-Funds,PPM America, Inc.225 West Wacker Drive, Suite 1200Chicago, Illinois 60606United States of America

Custodian, Central Administration, The Bank of New York (Luxembourg) S.A.Registrar and Transfer Agent and Aerogolf CenterDomiciliary and Corporate Agent 1A, Hoehenhof

L-1736 SenningerbergGrand Duchy of Luxembourg

Auditor KPMG Audit S.à r.l.9, Allée SchefferL-2520 LuxembourgGrand Duchy of Luxembourg

Legal Adviser Kremer Associés & Clifford Chance2-4, Place de ParisL-1011 LuxembourgGrand Duchy of Luxembourg


DIRECTORY, ADMINISTRATION AND MANAGEMENT (continued)

3

Current Prospectus

The SICAV’s Prospectus and simplified Prospectus dated October 2008 may be obtained from the Registered Office of the SICAV. Copies ofthe Company’s Articles of Association may also be obtained, free of charge, from the Registered Office of the SICAV.

During the year, the Prospectus has been amended in line with CSSF approval. Please refer to the Prospectus dated October 2008 to have thecurrent applicable terms and conditions.

Authorised Status

The Company is governed by the Luxembourg Law dated December 20, 2002 (the “2002 Law”). The Company fulfils the provisions ofarticle 27 applicable to the investment companies which have not designated a management company i.e. self managed investmentcompanies. Thus, the Company complies with the provisions of directives 2001/107/EC and 2001/108/EC of the European Parliament andof the Council of January 21, 2002 amending the Council Directive 85/611/EEC on the coordination of laws, regulations and administrativeprovisions relating to undertakings for collective investment in transferable securities (UCITS) with a view to regulating managementcompanies and simplified prospectuses respectively with regards to investments of UCITS.

Annual General Meeting

The annual general meeting of Shareholders of the SICAV will be held at the Registered Office of the SICAV or at such other place inLuxembourg on the second Friday of April in each year at 11 a.m., or if any such day is not a Business Day in Luxembourg, on the nextfollowing Business Day in Luxembourg.

Notices of all general meetings will be sent to the holders of registered Shares by post at least 8 days prior to the meeting at their addresses inthe register of Shareholders.

The notices of all general meetings of Shareholders may be published in any newspapers as the Board of Directors may decide.

Report and Accounts

The financial year-end of the SICAV will be the last day of December of each year.

Audited annual reports will be published within 4 months after the financial year-end and unaudited semi-annual reports will be publishedwithin 2 months after the end of the relevant period. Such reports will be mailed to each registered Shareholder at their registered address andwill be made available at the Registered Office of the SICAV during normal business hours.

Publication of Prices

Prices will be made available at the registered office of the SICAV on a daily basis and on Bloomberg and Reuters’ Lipper Hindsight. TheSICAV will further arrange for regular publication of the prices in the Financial Times, or in such other newspapers as the Board of Directorsmay decide on.

Purchases and Sales

A detailed list of investments purchased and sold for any Sub-Fund during the year is available upon request, free of charge, from theRegistered Office of the SICAV.


GENERAL INFORMATION

4

Dear Shareholders,

The year has been characterised by unparalleled volatility and unprecedented challenges. What started out as a problem in the US housingsector, quickly spread to the financial institutions worldwide and eventually spilled over to the real economy.

Few stock markets can claim to have escaped the dreadful effects of the 2008 global financial crisis. Equities are among its largest casualties;many major indexes finished the year lower by 30% or more. The US Dow Jones Industrial Index suffered a loss of 33.8%, Japan’s Nikkei225 slipped by 42.1%, the FTSE Eurofirst 300 index fell by 44.8%, the list goes on. To summarise, the MSCI World Index lost 42.1%, theworst annual performance since the start of the index in 1970.

Just like their equity counterparts, global fixed income markets experienced their fair share of extreme volatility in 2008. Concerns over thefinancial sector stability and a heightened US recessionary risk environment led to investors’ preference for safe haven assets. As the thirdquarter hit, confidence in the global financial markets began to fail. A number of US financial institutions were placed into conservatorship.Things finally fell apart when US investment bank, Lehman Brothers, collapsed, sparking an unprecedented global financial turmoil. Amidstthe chaos, G7 government bond yields fell sharply while credit spreads widened substantially. Mounting fears of a systemic global bankingsystem collapse and the prospect of central banks easing rates further, receding inflationary pressures and poor equity market performancefurther underpinned performance of the G7 government bond markets.

With the world on the verge of a systemic financial system collapse, global central banks were forced to implement emergency measuresthroughout the year. Apart from slashing interest rates, a number of countries also put in place massive fiscal stimulus plans to prevent theireconomies from slipping into a severe recession. Meanwhile, deteriorating property market and weaker consumer spending have alsodampened the overall sentiment.

But not all news is bad. Post the sell offs, many equities have hit multi-year valuation lows. A number of equity markets are well ahead in theirdiscounting. Within Europe, there is good value in UK, Germany, Russia and Turkey. In Japan, more than 60% of the listed companies aretrading below book value. As for US, equities there have fallen significantly but may still not be cheap enough given the long road to recovery.Moreover, US valuations are not at previous secular bear market trough levels. A final round of profit downgrades could signal a bottom to thefall. On Asia, The fund manager continues to believe that the region’s medium-term outlook is positive. Valuation is supportive and theinvestment case for Asia is only a question of ‘when’ and not ‘if ’.

A similar case can be made for corporate bonds. A notable aspect of this crisis has been to drive up the bond yield spreads to historically widelevels, resulting in many investment grade corporate bonds being priced at implied default rates far higher than seems likely. Even in the highyield segment, valuations have corrected considerably such that significant downside protection exists. It appears that bonds have been evenmore aggressive in discounting a depression than equities.

2009 is expected to be equally challenging and volatile, if not more. Sentiment will likely remain fragile but investors who are willing to lookbeyond the near-term uncertainty are likely to capture significant opportunities over the medium term.

Against such a difficult background, the IOF range of equity Sub-Funds posted declines ranging from 23% to 67% while the bond Sub-Funds recorded smaller dips. Performance details of the respective Sub-Funds are stated later in the report.

During 2008, three new Sub-Funds were launched. These were the Japan Smaller Companies, Latin American Equity and Global MarketNavigator.


REPORT OF THE BOARD OF DIRECTORSAS AT DECEMBER 31, 2008

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International Opportunities Funds – Asia Pacific Equity (“Sub-Fund”)

Performance

*August 22, 2007, Class ESource: Prudential Asset Management, (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe world’s equity markets ended significantly lower in 2008 and Asia’s markets suffered following impressive 2007 performances. Concernabout the depth of a global recession made the markets volatile. Although, in the fund manager’s opinion, Asia’s financial system is relativelysound, its markets were swept up in the turmoil as foreign outflows hurt equities and certain currencies. Concern intensified about an export-led slowdown in the region. For the 12 months ended December 31, 2008 the Sub-Fund declined 52.1% to narrowly underperform itsbenchmark, which lost 51.6%.

Factors affecting performanceThe Sub-Fund underperformed largely because of stock selection in India and Hong Kong. Despite this, stock selection in Australia andKorea contributed strongly to the Sub-Fund’s relative performance against the benchmark.

In India, IVRCL Infrastructures & Projects was among the larger detractors. But the fund manager believes this engineering and constructioncompany will benefit from the Indian government’s public works spending.

Kowloon Development and AAC Acoustic Technologies hurt Sub-Fund’s performance in Hong Kong. The former is a property companythat was hit by investor concerns about possible losses on financial contracts. AAC makes components for mobile phones.

Consumer staple businesses in Australia were leading contributors to the Sub-Fund performance. Foster’s Group, a brewer and winecompany, andMetcash, a grocer, led the sector. The Sub-Fund did well in Korea by generally avoiding the industrial sector, which fell sharply.The exception was an overweight position in S1 Corp., an industrial that outperformed the Korean market. S1 makes security systems.

Key changes to the portfolioThe fund manager consolidated positions in property, banking and technology. New positions were established in China Resources Land,Delta Electronics, AXA Asia Pacific Holdings, China Merchants Bank, Ping An Insurance and Hang Seng Bank. The fund manager solddown and closed out of Hana Financial, Korea Exchange Bank, Yanlord Land and Venture Corp.

Outlook and strategyThe fund manager believes the medium-term outlook for Asia is positive. The fund manager thinks the region’s equity valuation is attractive,again from a medium-term perspective, but expects 2009 to be a volatile and challenging year. Economic growth is likely to moderate as theresult of weakening exports and slower capital formation, but the fund manager thinks that ex-Japan Aia is in generally better fundamentalshape than the developed markets. Fiscal and monetary measures are moving quickly to counter the crisis, and some degree of economicdecoupling from the global slowdown should become visible over the next 18-24 months.


REPORT OF THE BOARD OF DIRECTORSAS AT DECEMBER 31, 2008 (continued)

6

International Opportunities Funds – Asian Bond (“Sub-Fund”)

Performance

*December 19, 2002, Class A

Source: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.# JPM Asian Credit Index from January 1, 2006 to July 31, 2006, New JP Morgan Asian Credit Index thereafter

Manager commentary

Sub-Fund performanceA marked deterioration in the global economic and investment environment took place in 2008. Since the sub-prime crisis erupted in May ,2007, the economic downturn gathered pace in 2008. Persistently large asset write-offs were made by financial institutions, resulting inconsecutive quarters of significant losses. The year saw the failure of several financial institutions, most notably, Lehman Brothers, BearStearns, Wachovia Bank and Washington Mutual. Credit spreads widened sharply as corporate bonds were sold-off amidst the turmoil andinvestor panic. Similar to other credit funds, the Sub-Fund had a challenging year of returns in 2008. In this environment, during the periodunder review, the Sub-Fund declined 13.9%, underperforming a return of -9.8% from its benchmark.

Factors affecting performanceThe portfolio began the year with a cautious strategy on credit by paring down credit risks of financials until the second quarter of 2008. Theability to pare down credit risk and put into effect portfolio strategy was severely hindered by the poor market liquidity. Banks and financialinstitutions, hurt by the crisis, had a reduced price-making risk appetite. What exacerbated the poor liquidity was a drying up of investorparticipation. With thinner trading volumes, price falls were exaggerated.

Key changes to the portfolioSince 2008, the following positive developments were noted in the financial markets: credit spreads have widened to attractive value levels andpolicy makers took decisive action to recapitalize banks and support the capital markets. The portfolio then maintained a moderate overweightin financial credit which offered value.

Outlook and strategyThe fund manager remains cautious on the global economy and the financial sector whilst recognizing the strong value in credits. Economicoutlook is pretty poor and financial institutions, particularly the leading global banks, are yet to stabilise their financial positions. Policymakersworldwide have introduced considerable measures to generously add liquidity and have begun the process of quantitative easing. However, thepositive impact of such measures thus far has been limited. While capital injections have helped improved financial institution’s balance sheetstrength, it has not led to an increase in lending to the corporate sector; a missing ingredient needed to begin the economic stabilization. Giventhe prevailing caution in the environment, the portfolio strategy was to keep overweight cash position while staying in selective financial creditsthat offer value. There is however significant value in US credit investments that offer considerably high long term potential returns. Thestrategic move here is to further apply the cash to invest in good value opportunities as credit spreads have seen sizeable widening to reflect theheightened recession and default risks.



7

International Opportunities Funds – Asian Dynamic (“Sub-Fund”)

Performance

*July 5, 2006, Class DSource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund marginally underperformed its benchmark in 2008, falling 52.5% for the full year compared with a 52.2% fall of itsbenchmark.

Factors affecting performanceThe Sub-Fund’s bottom up investment approach is reflected with stock selection being the key determinant of performance over the period.Stock selection in China helped performance and those stocks set to benefit from increasing infrastructure spending from the governmentwere particularly strong. These included China Resources Power, China Shanshui Cement and Taiwan Cement. The Sub-Fund’s performancewas buoyed by strong stock picking earlier in the reporting period in Korea and Indonesia. In Indonesia, Bumi Resources added toperformance, and in Korea, Kookmin Bank performed well.

Detractors to performance included consumer discretionary stocks such as Focus Media, the Chinese advertising company, and some financialstocks which were impacted by the financial turmoil such as Korea’s KB Financial, India’s ICICI Bank, China’s ICBC and Singapore’s DBSBank . On the whole, the underweight position in Hong Kong stocks and Indian stocks also hurt performance.

Key changes to the portfolioEarly in the period, the fund manager established a new position in Korean company, Hanwha Chemical. The fund manager felt it wasundervalued as its non-core assets are less cyclical in nature than the petrochemical industry. At the time, the fund manager also sold out ofSingapore Press Holdings which had performed well, leaving limited upside. The fund manager closed out the LG Electronics position,following a favourable run and allocated the proceeds into a new position in Indian telecom giant, Bharti Airtel, which had similar growthprofile to China Mobile but at a substantially better value. The fund manager also exited China Shenhua to consolidate its coal stocks bytopping up Bumi Resources.

The fund manager sold Advanced Semiconductor and bought AU Optronics with the proceeds, one of Taiwan’s leading makers of liquid-crystal displays. Later in the period, the fund manager added two new names: Focus Media and Asustek Computer. Focus Media has amajority share in the out-of-home advertising display sector and Asustek is well positioned to capture increasing notebook computer demandboth in China and Europe.

Outlook and strategyThe fund manager believes the long-term outlook for Asia remains positive, although the region’s growth will likely decelerate further asdownturn in the West impacts Asia’s exports. The fund manager continues to focus on cash flow and long-term valuations and believes thatAsian valuations are at very attractive levels. The portfolio is focused towards domestic demand related companies, particularly those in China.



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International Opportunities Funds – Asian Equity (“Sub-Fund”)

Performance

*February 24, 2003, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe year was tumultuous and the world’s equity markets ended significantly lower. Asian markets bore the brunt of investor worries followingimpressive 2007 performances. Although Asia’s financial system, in the fund manager’s opinion, is relatively sound, its markets suffered asforeign outflows hurt equities and certain currencies. Concerns intensified about an export-led slowdown. Against this background, during theperiod under review, the Sub-Fund declined 54.3%, which underperformed its benchmark, the MSCI AC Asia ex Japan Index’s loss of51.0%.

Factors affecting performanceStock selection in Indonesia, Singapore, India and China largely resulted in the Sub-Fund’s underperformance. In contrast, Korea made astrong positive contribution thanks to the underweighting of cyclical industries − shipbuilding, steel and construction − and good stockselection in the consumer discretionary sector.

Indonesia’s PT Energi Mega Persada was hurt by sliding oil prices. The company and its parent entity, Bakrie and Brothers, reduced Sub-Fund’s performance notably after concern emerged about Bakrie’s debt. In Singapore, falling demand depressed shipbuilder Cosco Singaporewhile the downturn in China property hurt Yanlord Land Group.

Focus Media was a major detractor from performance in China. The company’s ADR price slumped in late 2008 after management warnedof slowing growth in the country’s advertising market. Suzlon Energy, India’s wind turbine major, suffered as declining oil prices and the creditcrisis forced developers to rethink renewable energy equipment.

Key changes to the portfolioNew positions were established in Ping An Insurance, Huabao International, Bank Rakyat Indonesia and Philippines Long DistanceTelephone Company (PLDT).

Ping An shares fell to what the fund manager believed were attractive valuations after concerns emerged about the company’s overseasacquisitions. Huabao supplies tobacco flavoring in China and seems defensive as tobacco demand and regional disposable incomes continue togrow. The fund manager believes Bank Rakyat has a competitive advantage in rural micro finance, a resilient sector and a key driver ofprofitability. PLDT is the Philippines’ leading phone company; the fund manager likes its defensive qualities and cheap valuation.

The Sub-Fund had a non-significant investment at year-end into Satyam Computer Services Ltd (Demat Shares) of 0.59% of the NAV.

Outlook and strategyThe fund manager believes the medium-term outlook for Asia is positive. The fund manager thinks the region’s equity valuation is attractive,again from a medium-term perspective, but expect 2009 to be a volatile and challenging year. Economic growth is likely to moderate as theresult of weakening exports and slower capital formation, but the fund manager thinks that ex-Japan Asia is in generally better fundamentalshape than the developed markets to weather the downturn. Fiscal and monetary measures are moving quickly to counter the crisis, and somedegree of economic decoupling from the global slowdown should become visible over the next 18-24 months.



9

International Opportunities Funds – Asian Equity Income (“Sub-Fund”)

Performance

*February 10, 2006, Class ASource: Prudential Asset Management, (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund lost 43.5% in 2008 outperforming the MSCI Asia Pacific ex-Japan benchmark by 9.1%.

Factors affecting performanceThe Sub-Fund’s defensive posture and the overweight in the telecommunication sector contributed to outperformance. The Sub-Fund’soverweight positions in AIS, Far Eastone, Telstra, Taiwan Mobile and Starhub were all among the top positive contributors to performance.The overweight in Metcash, an Australian consumer play, also benefited performance during the year. The fund manager likes the company asit provides a relatively defensive exposure to Australia. Other positions that helped performance were the overweights in IAG, Public Bank andTSMC.

The Sub-Fund’s underweight in BHP Billiton and Samsung Electronics detracted from performance. The weakness in the Korean Won had astrong positive impact on Samsung’s operating profit and share price but the fund manager does not own this stock in yield portfolios as ityields significantly below the regional average yield of 5%. BHP did not offer us a premium yield either. The lack of yield opportunities keptthe Sub-Fund out of the materials sector all together. The Sub-Fund’s REITs holdings (Becton Property, Rubicon, GPT Group) that the fundmanager subsequently exited at relatively attractive levels also hurt performance amid the deteriorating outlook in global credit markets.

Key changes to the portfolioThe fund manager consolidated the portfolio in 2008 with an aim to reduce risk. Despite the high yields offered in New Zealand, theexposure to the market was sold down to zero on macroeconomic concerns. This was not possible in the larger Australian market, whereinstead, the fund manager gradually reduced exposure throughout the year and adjusted the holdings to limit exposure to the deterioration inthe currency and adopted a more defensive position. The fund manager sold out of Westpac, CBA, Westfield Group and Becton Propertyamongst others and reduced NAB and Westpac. Proceeds were invested in the Philippines and Indonesia where the larger population basecould underpin domestic demand in the face of slowing exports. The sharp correction provided an opportunity to add stocks at attractivelevels and the preference was in selected telecom and financial names in these markets.

The fund manager also gradually trimmed down exposure to Korea owing to concerns over the deteriorating domestic economy where privatedebt accounts for 180% of GDP. Korea stands as the fund’s largest underweight country position. Proceeds were used to build exposure toChina. For the first time since the inception of the Sub-Fund, the current market conditions have allowed the fund manager to identify yieldcandidates in this market. The fund manager established positions in CNOOC, China Mobile, ICBC and Belle. The Sub-Fund maintained arelatively large exposure to Taiwan, where the average level of dividend yield was greater than the region.

Outlook and strategyThe fund manager continues to believe that the long-term outlook for Asia is strong, although the region’s economic growth will likely slow asdownturns in the West curb exports and factory output in Asia. The fund manager is adhering to the investment focus on cash flow and long-term valuations. The fund manager believes that Asian valuations have again become cheap and that attractive buying opportunities areemerging. The fund manager sees promise among companies that serve domestic demand, particularly in China and Indonesia. The fundmanager’s preference remains for larger companies that are able to maintain a stable dividend policy.



10

International Opportunities Funds – Asian Infrastructure Equity (“Sub-Fund”)

Performance

*October 2, 2007, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceInfrastructure stocks performed in line with the broader market over the year. Within infrastructure, sectors such as industrials and energyunderperformed while utilities and telecoms outperformed. Later in the year, as the global economy began to slow, Asian governmentsreinforced infrastructure spending plans which supported stocks with exposure going forward. The Sub-Fund was launched on October 2,2007. From inception until the end of the year, it posted a 32.2% loss, outperforming the MSCI AC Asia ex Japan by 13.6%.

Factors affecting performanceThe key strategy that helped performance over this period was the focus on China stocks. Avoiding companies in countries such as Taiwan,Hong Kong and Korea was also beneficial to performance. The fund manager’s focus on utility and telecom stocks also helped performance.The Sub-Fund has also benefited from being exposed to the industrial sectors across Asia, while avoiding materials stocks.

At a stock level, positive performance came from companies such as Far Eastone, S1 Corporation, Singapore Telecommunications, BhartiAirtel. On the back of infrastructure spending announcements from the Chinese government, several China infrastructure stocks performedwell such as Guangdong Investments, Chunghwa Telecom, China Railway, and Angang Steel among others. Detractors to performance camefrom Daelim Industrial and Larsen & Toubro.

Key changes to the portfolioThe key trades within the Sub-Fund over the year tended to be those within China as infrastructure spending plans were reiterated. One ofthe most significant trades was a new holding in Angang Steel. This Chinese steel company was bought at a significant discount andsubsequently rallied aggressively. The Sub-Fund also benefited from new China positions in China Shipping and Sinotruk. Within Indonesia,the fund manager sold the holding in Astra International before commodity prices hurt performance. In Korea, the fund manager addedPOSCO and Hyundai Heavy Industries to maintain the position as Korea equities tumbled. In Thailand, the fund manager added Thai TapWater and PTT Chemical later on very undemanding valuations. In India, the fund manager added to Bharti Airtel and Gail India whileselling out of Larsen and Toubro.

Outlook and strategyGovernments throughout Asia have reiterated their commitment to spending on infrastructure to stimulate domestic demand in adeteriorating environment. With Asian government balance sheets stronger than any time in the last 10 years, they are well placed to do so.With valuations of infrastructure stocks around historical lows, the fund manager believes this is an attractive opportunity for investors to buyinto and benefit from infrastructure spending. The fund manager continues to favour China and other economies with strong domesticinvestment and demand stories.



11

International Opportunities Funds – Asian Local Bond (“Sub-Fund”)

Performance

*August 7, 2006, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceAsian bond markets were hurt by inflation concerns during the first half of 2008. Surging oil and commodity prices not only pushed upinflation expectations, but caused trade balances to deteriorate in a number of countries. Bond yields consequently were re-priced higher andAsian currencies depreciated against the USD. The jump in bond yields was most acute in Indonesia, Philippines and Thailand where the ten-year yield gained 166 bp to 13.4%, 217 bp to 9.43% and 134 bp to 5.98% respectively. The sharpest depreciation against the USD wasexperienced by Philippine Peso, Thai Baht and Korea Won which fell 7.7%, 6.2% and 5.6% respectively.

Despite the sharp fall in oil and commodity prices in the second half of 2008, Asian bond markets failed to rally as the bankruptcy of LehmanBrothers and a number of global financial institutions in September led to a global credit crunch. Asian currencies fell as capital fled the region.Korea Won and Indonesia Rupiah were the worst hit, falling 17% against USD from July to December. Ten-year government bond yield inIndonesia rose 7.5% to 21% in October as foreign investors sold their holdings in thin market conditions. Asian central banks moved to easemonetary policy as signs emerged of a sharp slowdown in the fourth quarter growth estimates.

Over 2008, the Sub-Fund dipped 7.9%, underperforming the benchmark’s loss of 0.6%.

Factors affecting performanceThe relative underperformance was due to an off-benchmark allocation to Vietnam bonds. Inflation jumped from 14.1% in January to28.3% in August, leading bond yields to end the year higher by 4%. The central bank was also forced to let the Vietnam Dong depreciate by9% so as to manage the growing trade deficit. Overweight allocations to corporate bonds, and Indonesia, Philippines and Korea governmentbonds also contributed to the underperformance.

Key changes to the portfolioThe fund manager gradually accumulated some off-benchmark credit positions as spreads widened to historically high levels, and will hold onto these exposures. The fund manager believes these credits offer attractive running yields and their prices already reflect default risks higherthan that experienced in previous recessions. Hence, these assets should perform well price-wise over the longer term as the economic cycleturns more favourable.



12

Outlook and strategyThe fund manager has held a positive view on Asian bond markets with the expectation that central banks will need to lower interest rates andinflation will fall sharply on the back of economic contraction and lower oil and food prices. Nonetheless the speed at which bond marketshave rallied has taken us by surprise. Valuation appears stretched in a number of markets, especially Hong Kong and Taiwan. The fundmanager has moved to underweight these two markets as a result. The fund manager still maintains overweight duration positions in Korea,Philippines and Indonesia as the fund manager thinks these central banks are likely to exceed current market expectations on future rate cuts.

The fund manager maintains overweight in Indonesia Rupiah, Korea Won, Malaysia Ringgit and Philippine Peso, against underweight inSingapore Dollar, Thai Baht and Taiwan Dollar. The former group is less susceptible to slowdown in exports compared to the latter group.



13

International Opportunities Funds – Asian Property Securities (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe year under review was volatile in terms of broad economic swings and ensuing market performance. Early on, markets contended withhigh valuations, monetary tightening and inflation. By the latter half of 2008, fears of an economic slowdown flared as a result of the financialcrisis in the US. The failure of Lehman Brothers, the first major financial institution to go bankrupt in the credit crunch, led to a seizing up ofmoney and credit markets which would have a direct impact on REITs in terms of their ability to refinance. REITs addressed the liquidityissues through asset sales when possible and raising equity through institutional placements and discounted right issues. In the second half ofthe year, some REITs initiated dividend cuts as earnings guidance was reduced and payout policies revised. REITs with healthy balance sheets,solid management and the ability to obtain reasonable financing outperformed in 2008. Against this background, the Asian PropertySecurities Sub-Fund posted a 52.5% loss.

Factors affecting performanceMalaysian REITs were the primary contributors to relative performance at the country level. The sector provided a buffer from volatilitywhich was largely due to limited foreign interest. Malaysian REITs also benefited from reasonable gearing and attractive dividends. Leadersamong Malaysian REITs included Amfirst, Starhill, Tower and UOA. Solitary positions in China and Thailand also added to performancewith positive contributions from RREEF Commercial Trust and CPN respectively. Australia was the lead detractor on a country basis asREITs fell across the board with Westfield Group and ING Industrial Fund leading the decline on a relative basis. Singapore REITs also fellwith Macarthurcook Industrial REIT and Mapletree Logistics Trust having a negative impact.

Key changes to the portfolioThe fund manager liquidated some of the less attractive positions which increased the Sub-Fund’s underweight position in Australia. CentroRetail Group, Macquarie Countrywide Trust, Macquarie Office Trust, Lend Lease Corp and ING industrial were among the Australian stocksthat were sold in 2008. Meanwhile in Japan, the fund manager took an opportunity to consolidate the portfolio by selling some smallerpositions such as LaSalle Japan, Mid REIT, Premier Investment and Creed Office Investment Corporation. The fund manager initiated anew position in Henderson Land and purchased the stock as it was trading at about a 50% discount to net asset value and at 0.55 times priceto book, which is below its trough valuations of 1998 and 2003. The stock offers attractive valuation coupled with a defensive feature as it hasa 39% stake in Hong Kong and China Gas. Capitacommercial Trust was purchased based on very attractive valuation, a solid dividend yieldof over 9% and better access to capital than smaller REITs.

Outlook and strategyFinancing concerns are likely to continue in the near-term as cost of capital weighs heavily in the minds of investors. However, REITs with asolid history, strong relationships with lenders and a higher class of portfolio assets are less likely to be dramatically impacted by increasing costof capital. Therefore, there is the strong possibility of further polarisation among the REIT segment in Asia as The fund manager sees thehealthier REITs dominate performance.



14

International Opportunities Funds – China Equity (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performance2008 was a year of deleveraging as the failure of Lehman Brothers in September resulted in the collapse of risk appetite. China, which had tocontend with concerns over rising crude oil prices, accelerating inflation, and the spectre of decelerating growth, was shaken by the financialcrisis in the U.S. The subsequent rapid deceleration in industrial production and investments had a negative effect on market performance,offsetting the positive sentiment from the Beijing Olympic Games. To boost the economy, the Chinese government announced in Novembera stimulus package of Rmb4trillion (including Rmb2trillion in China’s railway construction). In an effort to bolster liquidity, China’s centralbank implemented sequential rate cuts in the last quarter of 2008, which led to a 10% rebound in the market in December alone. In view ofthe difficult environment, the China Equity Sub-Fund fell 51.1%, underperforming by the benchmark by 30 bps.

Factors affecting performanceThe leading contributor to performance on a sector level came from good stock picks in the materials sector, with the overweight position inHaubao International and the underweight position in Aluminum Corp of China and Nine Dragons Paper both helping. In the industrialsector, the Sub-Fund’s overweight position in BYD Co generated positive performance, while selling China Cosco before the stock plungedmore than 70% in 2H08 was also a positive move. In financials, overweight positions in Bank of China, Industrial & Commercial Bank ofChina and Franshion Properties helped performance.

On the negative side, holdings in China Unicom, Gome Electrical, Focus Media, Sina Corp and BYD Electronic were key detractors of theyear, especially in the fourth quarter. Gome’s stock was suspended in November after Chairman, Huang Guangyu, was detained andquestioned by police over alleged ‘market manipulation. The fund manager thinks the company’s business franchise is solid but the fundmanager will evaluate the holdings in the stock after more information on the company’s internal control and financing needs becomesavailable. Focus Media dropped after poor results from its non-core business. The agreement to sell the core business to Sina also raises thequestion of the validity of the core business. The fund manager thinks Focus Media’s core business is valid. The low valuation makes the stocka good risk reward balance.

Key changes to the portfolioWith China’s overall macro direction unclear, the Sub-Fund was hoping to make money by investing in companies that are gaining marketshare from traditional businesses regardless how of China’s growth rate. With this objective, the Sub-Fund established new positions in Ctrip,Focus Media, Netease.com and Sina Corp. The Sub-Fund also bought Franshion Property, with the view that the investment property marketis less vulnerable to a macro slowdown than the development property market. The fund manager sold China COSCO due to thedeteriorating outlook of the Asian bulk shipping industry. The fund manager switched from China Resource Power to China PowerInternational, a red-chip Chinese power plant operator, due to the latter’s much cheaper valuation.

Outlook and strategyOn a relative basis, China equity is attractive due to the strong balance sheet of the Chinese government, the Chinese banks and the Chineseconsumers. The rebound in the MSCI China Index since the end of October, however, makes the China market vulnerable to short-termweakness. In the fund manager’s view, the government’s policies will pull China out of the downward trend. The weaker than expected 2008results, due in the next 3 months, could give investors another opportunity to invest in China stocks.



15

International Opportunities Funds – Dragon Peacock (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe year under review was volatile in terms of broad economic swings and ensuing market performance. Early on, China and Indiacontended with high valuation, monetary tightening and inflation. By the latter half of 2008, fears of an economic slowdown flared in eacheconomy as a result of the financial crisis in the US. The subsequent rapid deceleration of consumption and exports had a significantlynegative impact on market performance for both India and China. However, investor confidence rebounded at the close of the year primarilydue to a number of monetary and fiscal policy announcements. The India government initiated a US$4billion stimulus package and in aneffort to facilitate liquidity, the Central bank implemented a succession of rate cuts in the second half of 2008. Meanwhile, the MSCI Chinatrended lower in 2008 but finished the year on a positive note as it advanced by 10.5% in December, its biggest gain since April. The upswingfollowed a 27 basis point cut in interest rates which was the fifth since September. The improvement in sentiment at the end of the year wasalso attributable to speculation that a second stimulus package may be unveiled in 2009. The Sub-Fund posted a 57.1% decline in 2008 inline with the composite benchmark.

Factors affecting performanceThe Sub-Fund slightly outperformed the benchmark in part due to stock selection of overweight positions such as BYD Co. Ltd., HuabaoInternational Holding, and Bank of China. Meanwhile, being underweight on materials companies such as China Coal, Yanzhou Coal, TataSteel and JSW steel also contributed to relative performance. Some of the Sub-Fund’s overweight financial positions in India detracted fromperformance, including Reliance Capital and Infrastructure Development Finance. In China, overweight positions in China Shenhua Energy,China Railway Group and Gome also detracted.

Key changes to the portfolioDuring the period under review, the fund manager liquidated DLF Limited, a developer of residential, commercial, and retail properties inIndia. The fund manager liked DLF’s asset mix, land bank and execution record which previously made it a relatively insulated play duringchallenging times, but the beginning of a slowdown is visible with a likely decline in earnings. The Sub-Fund’s position in Idea Cellular wasalso closed as operating expenditure for network rollout is likely to impact margins for several quarters. A new position was established inHindustan Unilever, a consumer manufacturer that has successfully passed through material costs. A new position was also taken in GailIndia, a producer and distributor of natural gas and petrochemicals. The company has a strong bottom line and defensive gas transmissionearnings. Another defensive position was taken in Bharat Heavy Electricals. With 14 plants and 8 service centers, BHEL is India's dominantproducer of power & industrial machinery.



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Outlook and strategyThe fund manager maintains the long-term investment thesis on India and believe that the growth story will be largely driven by theinfrastructure and consumer sectors. Oil prices and commodity costs have continued to decline while the Reserve Bank of India has steppedup efforts to support liquidity and growth with an aggressive stimulus package and a succession of rate cuts. Although the rupee declined in2008, proactive central bank activity may provide some support going forward. The fund manager believes that amid a slowing global growthenvironment, India, while not completely insulated, is positioned well to recover. The fund manager expects populist measures will addressnegative sentiment brought about by the economic slowdown. The new government will likely provide additional fiscal stimulus.

In China, economic numbers have confirmed investors’ concern regarding a slowdown. On the positive side, however, the government isresponding aggressively and has announced a stimulus package of Rmb 4trillion for the next two years along with several rate cuts. With lowconsumer debt, China has significant consumption power. The Sub-Fund is strategically positioned to benefit from the overweight positionsin both consumers and industrials. Further investment in underweight sectors will be considered on a stock selection basis using a bottom-upapproach.



17

International Opportunities Funds – European Investment Grade Bond (“Sub-Fund”)

Performance

*February 15, 2005, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in Euros, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe global economy continued to slow in 2008, with the occurrence of unprecedented developments in the markets and global economyduring the third quarter in particular. No region was immune from the double-whammy of a severely debilitated banking system and amarked downturn in consumer activity, particularly in the United States.

Unsurprisingly policy responses globally have been aggressive, albeit to varying degrees. Interest rates have been slashed to almostunprecedented levels, and fiscal measures have been put in place or are being planned. The European Central Bank (ECB) has, over thecourse of the year, cut the key interest rate for the 15 countries that use the euro to 2.5%. The fund manager continues to believe that interestrates will fall further than markets expect, and that they will remain lower for longer.

Corporate bonds are now the cheapest they’ve ever been. As at the December16, US BBB rated corporate bond spreads reached their highestlevel in history - wider than during the depths of the Great Depression. The average US BBB rated corporate bond now yields 8.04% morethan a government bond of similar maturity, eclipsing the record of 7.24% in June 1932. UK BBB rated corporate bonds yield 7.13% morethan government bonds, also a record.

The Sub-Fund declined by 6.0% in USD terms over the year ending December 31, 2008. It underperformed the Merrill Lynch EMUCorporate Bond Index, which lost 3.3%.

Factors affecting performanceSector selection was a mixed picture in 2008. On the positive side the fund manager maintained an overweight position in cash, Supranationaland Government bonds throughout the year which significantly outperformed the benchmark. Unfortunately this was insufficient to fullyoffset the negative returns encountered elsewhere in the portfolio.

The portfolio suffered two defaults during the year from Lehman Brothers and Washington Mutual. Although the problems at theseinstitutions were well publicised, market consensus was that they would receive US Government assistance. Regrettably this support failed toemerge when needed, leaving bondholders facing negligible recovery prospects.

Elsewhere the investments in securitised markets suffered from the forced liquidation of highly leveraged investors' holdings in these assetswhich drove prices down appreciably. Ultimately, the fund manager does not expect to suffer credit loss on these positions and view themarket dislocation in these assets as more technical than fundamental. Subordinated bank bonds were hit badly in 2008, especially in thelatter part of the year as the credit crunch hardened and required significant government action to recapitalise the banking system. The fundmanager was not materially overweight this sector but the poor performance here did contribute to the overall weak absolute performance.

A small number of the corporate bond holdings were downgraded to sub-investment grade requiring us to sell them and realise losses.

Key changes to the portfolioThe fund manager has reinvested most of the cash and some of the Government bonds into attractively priced corporate bonds. The bestopportunities tend to be found in the new issue market where bonds have to price cheap compared to the secondary market in order to clear.

In particular the fund manager has added to Utilities as a defensive sector with attractive spreads. The fund manager maintains somegovernment bond exposure for backstop liquidity purposes as liquidity in corporate bonds can be poor at times.



18

Outlook and strategyAn early recovery is most unlikely. Moreover any recovery - when it does come - is likely to be somewhat anaemic. It will require a protractedperiod for banks to repair their balance sheets, which does not bode well for a relaxation of lending practices. The damage to the debt fundedconsumer - especially in the US and the UK - is also profound, with a rise in precautionary saving almost inevitable. It seems that the policyresponse is set only to cushion the slowdown rather than reverse it.

Although the fund manager has a negative view on global growth and expect the number of defaults to increase, the fund manager believesthat many issues are now offering more than adequate yield to compensate for the risk taken. However, the fund manager will continue toavoid the lowest-rated bonds and the most exposed sectors where defaults are likely to be concentrated.



19

International Opportunities Funds – Global Market Navigator (“Sub-Fund”)

Performance

*March 26, 2008, Class A

Source: Prudential Asset Management (Singapore) Limited (Sub-Fund data) in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performance

Financials markets had an exceptionally difficult 2008 with risky assets suffering unprecedented levels of volatility. A bad year for global equityand credit markets turned into a catastrophe when Lehman Brothers was allowed to fail in September. This was probably the most importantevent for the year which triggered a collapse of the global financial system. At one juncture, US BBB credit spreads hit the all time peakrecorded in the 1930s Great Depression. Although risky assets recovered some of the losses in December, they were still down significantly forthe year.

Global equities registered a 40.3% decline in US dollar terms, high yield credit fell 26.4% whilst investment grade credit suffered a smaller lossof 6.8%. Reversing the 2007 trend, Emerging Markets equity plunged sharply; China and India were among the worst performers for theyear amid rising global risk aversion.

In contrast, government bond markets saw a 10.9% gain for the year as investors sought safety amid the uncertainties. Interest rates and bondyields rose sharply early in the year in response to commodity-linked inflation. However, once growth and commodity prices collapsed in thesecond half of 2008, central banks rapidly lowered policy rates. The near vertical drop in global orders and production in the second half of2008 and the sharp fall in commodity prices also caused the unwinding of the currency carry trade, which underpinned the Japanese yen’sstrength and pushed high yield currencies such as the Australian and New Zealand dollars sharply lower.

The Sub-Fund has slipped 17.7% since its inception in March, 2008.

Factors affecting performance

Throughout 2008, the Sub-Fund had a very low allocation to equities (averaged about 30%). Nonetheless, the fund manager did maintaincore positions in UK and European equities through the year, as these markets were already at extreme valuations. This was a drag on absoluteperformance for most of the year, however.

The Sub-Fund also had a very low allocation to emerging markets all year. In spite of improved macro fundamentals, the fund manager’s viewwas that it was not sustainable for emerging markets to trade at a premium valuation to developed equity markets. This strategy broadlyworked as emerging equities fell sharply in absolute terms and underperformed developed equities in the second half of 2008. The fundmanager added a position in Russia in September, following the sharp correction in valuation. With hindsight, the fund manager was twomonths too early into this trade as global risk aversion drove the market’s valuation below its previous trough levels. Nevertheless, the fundmanager held the view that Russia’s macro-economic fundamentals is in a much stronger position now as compared to the 1998 crisis periodand hence is not justifiable for the market to trade down to the previous trough valuations.

The fund manager held a core position in investment grade credit throughout the year due to the attractive valuation relative to governmentbonds. This position suffered in the third quarter; however it provided strong returns in December 2008 as corporate spreads (and yields)declined. US investment grade spreads hit the all time peak recorded in the Great Depression and in the fund manager’s view this representeda multi decade opportunity to purchase corporate bonds. The fund manager has maintained this position as the fund manager believes thatcredit may outperform equities in 2009.



20

Given the fund manager’s caution on equities, the fund manager maintained a high allocation to safe government bonds during 2008. Inparticular, the fund manager made good returns on the Australian and UK government bond positions as yields fell in response to slowinggrowth, falling inflation and short term interest rates. Currency wise, the fund manager has hedged (or avoided) exposure to British Pound,Euro and Australian dollar throughout the year. While this was detrimental to performance in the first half of 2008, all three currenciesweakened sharply against the US dollar in the second half as macroeconomic fundamentals deteriorated.

Key changes to the portfolioThe fund manager used episodes of panic selling in markets to increase the Sub-Fund's allocation to equities (to a high of almost 80% inNovember) as valuations appeared to cheapen up to extreme levels. The fund manager subsequently trimmed the Sub-Fund’s equity holdings(to around 25% as at end of December) into the market rebound as the rally appeared to be underpinned by fragile investor risk appetiterather than an improvement in fundamentals.

The fund manager avoided US high yield corporate bonds for most of 2008 and initiated a position in the late fourth quarter when high yieldcredit spreads moved to the widest on record - pricing roughly a 60% cumulative default rate over the next 5 years – wider than the GreatDepression’s 46%. This strategy worked particularly well in two ways. First, the fund manager avoided the sharp deterioration in credit in thefirst three quarters of the year. Secondly, high yield has performed strongly since the fund manager added the position in late November.

OutlookLooking forward, the fund manager does not believe that equity markets are at a point where the fund manager sees a secular bull market asmany OECD economies face the prospect of a deep, protracted recession. In addition, banks and consumers still need to de-leverage and thiswill probably weigh on growth and profits for several years. Moreover, US equity valuations appear to be only about fair and do not seem tooffer much compensation for the significant economic and earnings risks that lie ahead. While some equity markets appear to be trading atextreme valuations, sustainable rallies will be dependent on the US market bottoming in the fund manager’s opinion. Nevertheless, the fundmanager does expect bear market rallies in equities within a broad range.

The fund manager continues to favour markets that are already trading at extreme valuations where the fund manager believes there issufficient compensation for the risks; these include equity markets of the UK, Singapore, Turkey and Russia. The fund manager also favourcredits as they appear to offer extreme value at present and will probably deliver better risk adjusted returns than equities in 2009. The fundmanager looks to invest the cash into equities when opportunities arise.



21

International Opportunities Funds – Global Technology (“Sub-Fund”)

Performance

*May 4, 2001, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe 12-month period under review saw the manifestation of one of the most difficult stock market cycles in many decades. Technology stockswere by no means the worst affected, with basic materials and financials sectors experiencing the largest declines.

Problems in the financial industry that began with the collapse of the US sub-prime mortgage market in 2007 climaxed in September withthe failure of US investment bank Lehman Brothers. The money available for mortgage and business borrowing was restricted as lendingbetween banks ground to a standstill. Consequently, global demand for commodities and consumer goods, already in decline, fell sharply asbusinesses and consumers were forced to tighten their belts. Sharp volatility characterised equity markets as investors opted for the security ofgovernment bonds and cash over any companies that might be perceived as risky.

The scale of the problem was sufficient to force governments and central banks to intervene with a series of massive financial stimuli, includinginterest rate cuts, aimed at preventing a collapse of credit markets and cushioning the downturn. At the end of the year, the fund manager sawsome positive signs as investors responded to the drastic steps taken.

For the year ended December 31, 2008, the Sub-Fund declined 46.7%, underperforming a decline of 44.4% from its benchmark, the FTSEWorld Information Technology Index.

Factors affecting performanceOverall returns from technology stocks were mixed as companies and consumers opted to defer investment in new equipment and software toreduce costs during the global economic slowdown. In such difficult conditions, more defensive areas, such as healthcare andtelecommunications, were the most resilient. Healthcare in particular, not traditionally seen as ‘technology’, remained relatively stable indeteriorating economic conditions, as demand remained constant. This helped some of the larger US-based companies in the portfolio, suchas Myriad Genetics, Amgen and Johnson & Johnson.

Biotechnology firm, Myriad Genetics, thrived in the difficult market conditions of 2008 through its pipeline of new curative and diagnosticproducts. Pharmaceutical company, Amgen, benefited from positive investor response to notable success in a large-scale Phase 3 trial of pivotalosteoporosis treatment Denosumab. Johnson & Johnson, a large, diversified firm with a range of globally recognised brands, was a defensiveplay for investors looking for a safe haven.

The general malaise in the US automobile market hit the value of shares in US Auto Parts Network. The online aftermarket auto partsprovider was also affected by higher-than-expected costs and litigation troubles during the first few months of 2008, which translated intodisappointing overall returns during 2008.

A holding in Belgian large-screen manufacturer Barco also weighed on Sub-Fund performance. The price of shares in Barco endured a steepfall in value during October 2008 following a cut in dividend and scrapped profit forecasts. Declining orders and increased competition alsopushed the company into an operating loss.



22

Key changes to the portfolioWith regard to portfolio activity, a new position in Marvell Technology was added to the portfolio in February. The BlackBerry and iPhonecomponent manufacturer is using its innovative technology to broaden its future prospects through significant development into wirelesschipsets and printer systems markets. The company is also improving its business practices, a transition not reflected in its market value.

The fund manager sold the position in IG Group in May, believing the investment rationale to be fulfilled. Recent strong performance by theUK-based spread trader has left their shares looking close to full value. A number of holdings in smaller companies that were more likely to bevulnerable during a protracted market downturn were sold, including US Auto Parts Network, Albany International and ModineManufacturing.

Outlook and StrategyThe fund manager believes that innovation remains a key driver of a company’s potential for growth over the longer term, regardless of thewider economic malaise. The Sub-Fund will continue to buy only those companies The fund manager perceives as long-term winners in theirspaces, whether cyclical or not.



23

International Opportunities Funds – Greater China Equity (“Sub-Fund”)

Performance

*November 23, 2001, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund dropped 51.3% in 2008, underperforming the 49.4% loss in its benchmark. While the Sub-Fund’s security selection inTaiwan and China hurt performance, asset weighting in Hong Kong equities had a positive contribution.

Factors affecting performanceThe Sub-Fund’s overweight in China’s Gome Electronic hampered returns. Gome’s chairman, Huang Guangyu, was detained and questionedby police over alleged ‘market manipulation’. The stock was then suspended in November. The company has hired Ernst & Young to conductan independent review of the company’s financial situation, internal control system and risk control. The company has also hired legal advisersto conduct a review on the company’s corporate governance. The fund manager thinks the company’s business franchise is solid but the fundmanager will wait for the review results before evaluating the stance. The overweight in Kowloon Development and China Coal Energy alsocurbed performance. Kowloon Development had reported that they expected HK$ 3.7 billion in losses from equity and derivativeinstruments. Share price plunged more than 80% in 2008.

The overweight positions in Hong Kong company, Hutchison Telecommunications and Sun Hung Kai Properties attributed positively. Theoverweight position in some of the Taiwan equities such as Yuanta Financial, Mediatek and Cathay Financial made good contributions. Thefund manager took profits and trimmed position in Mediatek to neutral after the company announced strong second quarter sales andpromising third quarter guidance. Overweight position in China Franshion Properties, a non-benchmark position also aided performance.Position was initiated in the last quarter before market edged up.

Key changes to the portfolioTotal number of holdings have been consolidated and reduced by 10% in 2008. Previous holdings such as Shui On Land, TSMC, AgileProperty, Hang Lung Properties and China Aoyuan were exited. The fund manager shifted from overweight China properties to underweightafter the China government introduced measures to cool off the property market and cap excessive price hikes throughout 2008. The fundmanager however, established new position in Franshion Properties, a commercial property developer in China’s major cities. The fundmanager likes the company for the exposure it provides to the commercial market that should keep it immune from the weakness in theresidential market. The fund manager saw the potentials in China’s on-line related industry and initiated positions in Focus Media whichoperates an outdoor TV advertising network in China, Ctrip.com and Travelsky, both of which are on-line travel agencies.

Outlook and strategyAlthough the region’s economic growth will slow over the near to medium term period, The fund manager continues to believe that the long-term outlook for Greater China is strong. The fund manager is adhering to the investment focus on cash flow and long-term valuations. Thefund manager believes Asian valuations have again become cheap and some stocks are trading at very depressed levels and The fund managersees attractive buying opportunities emerging. The fund manager is looking to shift some funds from Hong Kong to China, and at the sametime considering opportunities in the heavily sold down property sector.



24

International Opportunities Funds – Hong Kong Equity (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe Sub-Fund dropped 51.9% in US dollar terms in the year ended December 31, 2008, while the benchmark MSCI Hong Kong Index fell51.2%.

Factors affecting performanceStock selection in financials and utilities dragged on the Sub-Fund’s performance, while stock picks in industrials and an underweight stanceon energy boosted the Sub-Fund. The Sub-Fund’s absence of exposure to Mongolia Energy Corp., a minerals explorer, and FoxconnInternational Holdings Ltd., the world’s biggest contract manufacturer of mobile phones, proved beneficial as shares of both companiessuffered hefty losses last year. The Sub-Fund’s off-benchmark positions in China Resources Power helped returns as holding shares of thethird-largest Hong Kong listed Chinese electricity producer, were perceived as a defensive play. The overweight in Wharf (Holdings) Ltd.boosted returns. Wharf is one of the heavily sold down property names that the fund manager finds attractive among the blue chips. Theunderweight in property companies Sino Land, New World Development Co. contributed positively as investors turned wary of propertyshares amid falling property prices and weaker homebuyers’ confidence.

The underweight stance on Hong Kong Electric Holdings limited the Sub-Fund’s performance as shares of the utility outperformed thebenchmark. Gome Electrical Appliances curbed returns as shares fell after the Chinese electronics retailer’s chairman was probed by the policeon allegations of having manipulated trading in shares of two other companies. The fund manager thinks though that the company’s businessfranchise is solid. Kowloon Development was a detractor as shares fell last year for the first time in three years, following the company’sannouncement of a HK$ 3.7 billion in losses from equity and derivative instruments. Holdings in China Unicom contributed negatively tothe Sub-Fund as shares fell amid concern that its spending may reduce earnings. Unicom completed its acquisition of China Netcom inOctober as part of a government-led reorganization of the industry.

Key changes to the portfolioThe Sub-Fund bought shares of Champion REIT as well as Link REIT, Hong Kong’s biggest property trust. It also added to its holdings inNWS and New World Development. The Sub-Fund exited BYD Electric, China Netcom and property firms Shui On Land and HongKong Land. It disposed of holdings in Techtronic Industries, the maker of Hoover vacuum cleaners and Ryobi power tools.

Outlook and strategyHong Kong’s economy, which is suffering its first recession since the severe acute respiratory syndrome outbreak in 2003, may expect mutedgrowth or negative GDP growth in the following quarters. The fund manager expects more downgrades in earnings expectations. Followingthe correction, the market is looking more attractive. The fund manager is turning less cautious on the Hong Kong market.



25

International Opportunities Funds – India Equity (“Sub-Fund”)

Performance

*October 17, 2005, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested

Manager commentary

Sub-Fund performanceThe year under review was volatile in terms of broad economic swings and ensuing market performance. Early on, India contended with highvaluation, monetary tightening and inflation. By the latter half of 2008, fears of an economic slowdown emerged as a result of the financialcrisis in the US. The subsequent rapid deceleration of industrial production and investments had a negative impact on market performance.Meanwhile, the Indian currency was under pressure for most of the year and lost 23.5% against the US$. However, investor confidencerebounded at the close of the 2008 with advances in December primarily due to a number of monetary and fiscal policy announcements. TheIndian government initiated a US$4billion stimulus package and in an effort to facilitate liquidity, the Central bank implemented a successionof rate cuts in the second half of 2008. The improvement in sentiment at the end of the year was attributable to speculation that furtherstimulus initiatives may be forthcoming. The Indian equity sub-fund’s A-class shares fell 65.2% in 2008, underperforming the MSCI Indiabenchmark by 0.6%.

Factors affecting performanceThe leading contributor to performance on a sector level was telecommunications. Stock selection was the key to performance as monthlysubscriber rates and one-off promotions were drivers that fed market volatility. The Sub-Fund benefited from being overweight Bharti Airteland underweight Reliance Communications. Positioning in the utilities sector also provided positive results with an overweight position inGail India and underweight in Reliance Energy. The leading detractor for the year was Infrastructure Development Finance as highercapitalization requirements subdued sentiment despite a fundamentally promising business model. Housing Development Finance declinedon concerns regarding tighter credit conditions that might impact growth prospects and lending margins.

Key changes to the portfolioA new position was established in Hindustan Unilever, a consumer manufacturer that has a very strong distribution network in rural India. Anew position was also taken in Gail India, a producer and distributor of natural gas and petrochemicals. The company has a strong bottomline and defensive gas transmission earnings. Bharat Petroleum was also purchased for attractive valuation along with capacity growth andmoderate earnings volatility made it an appropriate addition to the Sub-Fund. Meanwhile, the fund manager exited out of RelianceCommunications due to increasing cost of capital as the company has a high level of debt and higher interest costs are likely to pressureearnings. Changes in the economic landscape also prompted the liquidation of Tata Steel, Crompton Greaves and Aditya Birla Nuvo.

Outlook and strategyThe fund manager maintains the long-term investment thesis regarding India and believe that the growth story will be largely driven by theinfrastructure and consumer sectors. Oil prices and commodity costs have continued to decline while the Reserve Bank of India has steppedup efforts to support liquidity and growth with an aggressive stimulus package and a succession of rate cuts. Although the rupee declined in2008, proactive central bank activity may provide some support going forward. The fund manager believes that amid a slowing global growthenvironment, India, while not completely insulated, is positioned well to recover. The fund manager expects populist measures will addressnegative sentiment brought about by the economic slowdown.



26

International Opportunities Funds – Indonesia Equity (“Sub-Fund”)

Performance

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-56.3

-0.3

-60

-40

-20

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20

1 Year Since Launch *

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etur

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S$ (

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International Opportunities Funds - Indonesia Equity JCI


Manager commentary

Sub-Fund performanceThe Sub-Fund posted a return of -59.0% in US dollar terms in 2008, underperforming the benchmark Jakarta Composite Index (JCI) by2.7%.

Factors affecting performanceThe Sub-Fund’s underweight position in Bank Internasional Indonesia hampered returns as the stock rose 30% in 2008, boosted by MalayanBanking’s tender offer to buy the shares at Rp510. The overweight in London Sumatra also curbed performance as its share price fell 73% lastyear on the back of lower crude palm oil prices. The underweight stance in Unilever Indonesia proved detrimental as the stock outperformedthe benchmark due to its perceived defensiveness.

Bank Mandiri and Bank Rakyat outperformed the JCI in 2008 and contributed positively to relative performance. The underweight positionin select nickel and energy stocks such as Aneka Tambang, International Nickel Indonesia and Energi Mega Persada also benefitedperformance as share prices plunged more than 70% last year. The underweight stance in Bakrie & Brothers helped the Sub-Fund as the stocklost 91% last year on the back of the conglomerate’s debt problems.

Key changes to the portfolioThe Sub-Fund bought shares of agribusiness firm Central Proteinaprima and increased its exposure to property firm Ciputra Development,high-end retailer, Mitra Adiperkasa and media company, Media Nusantara. It also purchased more shares in Perusahaan Gas. The Sub-Fundsold shares of nickel and gold miner, Aneka Tambang and trimmed holdings in Bakrie & Brothers.

Outlook and strategyThe fund manager is positive on Indonesian equities as valuations are attractive relative to other Asian equity markets despite near-termconcerns of slower economic growth, downward earnings revision and higher risk aversion. The fund manager is cautious on consumer staplesdue to unattractive valuations and remain positive on banks with strong deposit franchise and low funding cost. The fund manager believesthere is no systemic risk to the banking system despite the global financial crisis.



27

International Opportunities Funds – Japan Dynamic (“Sub-Fund”)

Performance

*July 5, 2006, Class DSource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund fell -23.1% in US dollar terms for the year ended December 31, 2008, which placed the Sub-Fund in the fourth percentile ofits peer group (Lipper Global Equity – Japan).

Factors affecting performanceThe year has been characterised by extreme volatility across the global equity universe. Excessive borrowing and inappropriate credit riskpricing in some western markets caused a global market shock that led to fears of depression and a deflationary spiral.

Valuation-oriented factors, such as owning shares in low price to book companies, have increasingly become important contributors to positiveperformance during the year.

Domestic names benefited the Sub-Fund’s performance including: Toppan Forms, leader in printing business forms, delivered strong earningsfrom the growth segment of its business, digital printing services; Obayashi Corp, civil engineering and construction contractor, wasrecognized for its attractive valuations, rising margins and steady earnings; and Retailer, Seven & I, which is experiencing stable earnings andrising sales growth in its domestic convenience stores and financial services.

Telecommunications company, NTT DoCoMo outperformed, with more defensive names generally holding up better in the volatileenvironment.

Shares in Ajinomoto, a manufacturer of food, seasonings and amino acids, rose on the expectation that lower raw material prices and risingoverseas food prices will have a positive effect on future earnings.

The Sub-Fund avoided expensive defensive names which detracted from performance. For example, a number of utility stocks held up betterthan the market average. Utility stock valuations are now at their most extreme relative to any historical period. The Sub-Fund has avoidedutilities as dividend yields are well below market average whilst medium-term earnings power is under pressure from increasing fixed costs.

Key changes to the portfolioHigh market volatility and rising pessimism in the market has brought some new opportunities based on valuation. More recently, the Sub-Fund started to increase positions in global consumer discretionary names such as Sony; Yamaha Motor; and Denso. The Sub-Fund alsoincreased positions in financial companies such as Credit Saison and Mitsubishi UFJ Financial Group.

These positions were partly funded by domestic stocks that performed well such as multimedia company, Kadokawa; construction company,Obayashi; and paper manufacturer, Oji Paper. The Sub-Fund also liquidated the position in edible oil manufacturer, J-Oil Mills.

Outlook and strategyThere are now strong valuation signals for Japanese equities. For example, a historical high of more than 70% of Japanese companies are nowtrading below book value. Japan is clearly not immune to the global cycle, but valuations in Japan remain attractive on many measures.

The Sub-Fund has accumulated positions in companies valued at a significant discount to trend returns the business can generate. Thesecontrarian positions include companies such as banks; domestic sensitive stocks in IT services; small caps; and selected technology companies.This approach has been beginning to pay off with the Sub-Fund outperforming the market.



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International Opportunities Funds – Japan Equity (“Sub-Fund”)

Performance

*January 16, 2006, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund fell 28.6% in USD terms for the year ended December 31, 2008, compared with the benchmark Topix 100 index’s 30.5%drop.

Factors affecting performanceThe year has been characterised by extreme volatility across the global equity universe. Excessive borrowing and inappropriate credit riskpricing in some western markets caused a global market shock that led to fears of depression and a deflationary spiral.

Given the current market conditions, style volatility has been commensurately high. Valuation-oriented factors, such as owning shares in lowprice to book companies, have increasingly become important contributors to positive performance during the year.

The Sub-Fund’s contrarian positions built in late 2006 and 2007 due to a narrow market driven by price and earnings momentum wererewarded in 2008 with both short and long positions contributing positively to performance. Short positions such as Global Cyclicals (Mitsui& Co; Komatsu; Mitsubishi Corp; and Mitsui OSK Lines) underperformed to the benefit of the Sub-Fund. Long positions such as domesticnames (Seven & I; Oji Paper; Yamato Holdings) outperformed. This is consistent with the investment approach, which is based on strongvaluation disciplines.

Defensive names detracted overall with a number of utility stocks holding up better than the market average. The Sub-Fund has avoidedpositions in these stocks on the basis of valuation.

Key changes to the portfolioTowards the end of 2008, the Sub-Fund began to close out the underweights in Global Cyclicals as valuations corrected sharply reflecting‘fears’ around global growth. These included trading companies, Mitsui & Co; Mitsubishi Corp; and Itochu, plus other selected stocks such asair-conditioning manufacturer, Daikin; real estate company, Mitsubishi Estate; and camera manufacturer, Nikon.

These positions were partly funded by domestic stocks that have performed well such as security services company, Secom; Yamato Holdings,a company offering door to door delivery services; and paper manufacturer, Oji Paper.

Outlook and strategyThere are now strong valuation signals for Japanese equities. For example, a historical high of more than 70% of Japanese companies are nowtrading below book value. Japan is clearly not immune to the global cycle, but valuations in Japan remain attractive on many measures.

The Sub-Fund has accumulated positions in companies valued at a significant discount to the trend return the business can generate. Thesehave typically been positions in selected technology and domestically focused stocks such as banks. This approach has been beginning to payoff with the Sub-Fund outperforming the market.



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International Opportunities Funds – Japan Smaller Companies (“Sub-Fund”)

Performance

*March 26, 2008, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceSince inception on March 26, 2008, the Sub-Fund fell 21.2% in USD terms.

Factors affecting performanceStocks of smaller companies in Japan are a narrow asset class, and hence tend to be volatile, undergoing periods of boom and bust comparedwith the shares of larger, global companies. Initial periods of outperformance by smaller companies can draw aggressive buying from aroundthe globe causing shares to become overvalued compared with larger ones. This happened in late 2005 and was followed by a period of sharpcorrection until late 2007. Since then, Japan’s smaller companies have held their own against larger companies but have continued to be weakalong with other Japan equities on global cyclical concerns.

The Sub-Fund has favoured domestically-oriented stocks with sustainable earnings and attractive valuation characteristics, such as servicesector and retail stocks. The market appeared to be taking a greater interest in a much undervalued housing and construction industry after anextension and enlargement of the government home loan tax break program. Beneficiaries within the Sub-Fund were Sumitomo Forestry, ahouse builder specializing in traditional methods; and Bunka Shutter, a manufacturer of shutters, with shares for these companies trading atcheap levels and offering attractive dividend yields.

Tsumura & Co., is a maker Chinese herbal medicines, has a near monopoly in this surprisingly large and growing market, and are prescribedby a growing number of doctors. This has been reflected in rising sales volumes. Tsumura & Co has also been one of the stronger contributorsto performance for the period.

A lack of traditional defensive names detracted from overall performance. For example, a number of utility stocks held up better than themarket average. Utility stock over-valuations are now at their most extreme relative to any historical period. The Sub-Fund has avoided utilitiesas dividend yields are well below market average whilst medium-term earnings power is under pressure from increasing fixed costs. Theprospect of deregulation is another threat to earnings power.

Key changes to the portfolioDuring the year the Sub-Fund has also significantly increased holdings in export-oriented electronic component and materials companies asthese were de-rated by the market.

Outlook and strategyValuation signals remain strong for Japanese smaller companies, with a historically high proportion of companies trading well below bookvalue. The fund manager continues to find many examples of healthy companies with high levels of cash on their balance sheets and strongongoing cashflows, which will be supportive in this current environment of slowing global growth.



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International Opportunities Funds – Korea Equity (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe Sub-Fund fell 48.4% in 2008 while the KOSPI 200 Index benchmark lost 54.9%, resulting in an outperformance of 6.5%. Since itsinception, the Sub-Fund lost 8.2% per annum compared with the 13.7% per annum drop in the benchmark, beating the latter by 5.5%.

Factors affecting performanceThe Sub-Fund’s underweight stance on Hyundai Heavy Industries, Samsung Heavy and Doosan Heavy, the world’s largest shipbuilders,benefited performance as the stocks fared worse than the benchmark on concerns the global recession will weaken trade demand and the needfor new vessels and ship repair. The overweight in Samsung Fire & Marine helped the Sub-Fund as the stock lost 25.5%, outperforming themarket gauge. The fund manager believes the company’s business and investment portfolio remain solid. S1 Corp, an overweight, bolsteredthe Sub-Fund’s returns. Shares of the largest home/office security service provider in Korea slipped 4.3% last year, outperforming the marketon growth expectations as the security service sector is deemed under penetrated. The company has very strong cash position.

The overweight in KB Financial Group Inc hampered the Sub-Fund’s performance as the stock fell since the holding company was set up forKookmin Bank and its eight affiliates in September amid concern over the domestic credit cycle. The Sub-Fund’s position on SamsungElectronics, the biggest underweight, contributed negatively as the stock lost 19% last year, outperforming the benchmark. Shinsegae, theSub-Fund’s biggest overweight, disappointed investors as shares of South Korea’s biggest discount-chain store fell 44% in 2008, the first annualdecline after three years of gains, on worries the operating environment will remain challenging due to consumption slowdown. The fundmanager believes though that the company has a very strong management team and has delivered consistently strong growth and margincontrol over the decade.

Key changes to the portfolioThe Sub-Fund established a new position in Macquarie Korea Infrastructure, KB Financial Group and Kangwon Land Inc. The latter is amonopoly casino operator in Korea. The Sub-Fund also added to its holdings in Woori Investment & Securities. The Sub-Fund shedholdings in Korea Exchange Bank, Kookmin Bank and Pusan Bank.

Outlook and strategyThe fund manager believes the Korean economy remains frail amid the spectre of a global recession. Macro economic fundamentals andcorporate earnings outlook have deteriorated last year. The financial crisis will continue to pressure the equities market. However, thedownside risk should be limited as valuation approaches trough levels and the government implements measures such as rate cuts to boostliquidity. A divergence exists with large blue-cap stocks trading at valuation discounts to some expensive mid-cap names, hence, offering goodinvestment opportunities.



31

International Opportunities Funds – Latin American Equity (“Sub-Fund”)

Performance

*April 30, 2008, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund dropped 60.5% in US dollar terms since inception date, compared with a 55.2% decrease in the benchmark.

Factors affecting performanceThe overweight in Brazil was the largest detractor from performance owing to a weak currency and volatile commodity prices. Tighterliquidity and credit conditions had a negative impact on the Sub-Fund’s holdings in interest sensitive stocks which further contributed tounderperformance. The Sub-Fund’s holdings in smaller cap stocks also hurt performance during the year amid unprecedented financialmarket volatility and increased risk premia.

Key changes to the portfolioThe Sub-Fund was launched in April, 2008 with a large overweight in Brazil, neutral in Mexico and an underweight the rest. The overweightin Brazil was subsequently reduced towards year-end to manage risk. The Sub-Fund maintains an overweight in infrastructure and industrialstocks. The fund manager also overweight the healthcare industry as a more defensive call amid extreme market volatility. The fund managercontinues to underweight energy and material stocks owing to extreme volatility in global commodities. The fund manager has recently soldout of Cemex at relatively attractive levels following the share price rally after the announcement of President Obama’s infrastructure projectsand debt restructuring. Proceeds from the Cemex trade were used to add to Walmart in Mexico, thereby making the Mexican exposure moredefensive. The fund manager continues to overweight consumer stocks as the fund manager expects these to benefit from the lower interestrate and a more benign inflationary environment.

Brazil remains the largest country overweight as it offers a better risk/return profile in the region under current market conditions. The fundmanager underweight Chile owing to the high commodity (copper) exposure of the market as well as relative valuations.

Outlook and strategyAlthough Latam is likely to face a difficult first half in 2009 due to the global backdrop, the fund manager maintains Brazil as an overweight asit is structurally stronger than in the past to weather external shocks: its banks are not exposed excessively to mortgages with no need forgovernment bail out, the consumer is not over leveraged, interest rates will come down 200-300 bps this year, the commodity downturn hasbeen priced in, exports only account for 13% of GDP and investors view Brazil as less risky than other emerging markets. The fund manageralso believes that the Brazilian lira should be less volatile this year and do not expect excessive weakening from the 2.3-2.4 level.



32

International Opportunities Funds – Malaysia Equity (“Sub-Fund”)

Performance

*July 3, 2007, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe world’s equity markets ended significantly lower in 2008 and Asia’s markets suffered following impressive 2007 performances. Concernabout the depth of a global recession made the markets volatile. Worry intensified about an export-led economic slowdown in the region. Forthe 12 months ended December 31, 2008 the Sub-Fund declined 43.1% to underperform its benchmark, which lost 41.2%. But the Sub-Fund outperformed its peer group, which declined an average 44.3%.

Factors affecting performanceAn overweight position in SapuraCrest Petroleum was among the larger detractors from Sub-Fund performance. Shares in this oil servicescompany lost ground in the wake of the sharp decline of crude oil prices late in the year. But the fund manager likes the stock and believesthat SapuraCrest will benefit over the long term from capital spending at Petronas, Malaysia’s government-controlled oil company.

IOI, which operates crude palm oil plantations, detracted from performance as a result of the decline in commodity prices late in the year.

In contrast, British American Tobacco Malaysia contributed positively to Sub-Fund performance. The fund manager likes the company’sdefensive business model. Tanjong, a lottery and utility company, also contributed and benefited from the stable income stream of itsbusinesses. The ship operator MISC was a third key contributor.

Key changes to the portfolioThe Sub-Fund established new positions in British American Tobacco Malaysia and TM International, a telecommunication company thatoperates in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia. Positions were sold down and closed in Malayan Banking, Gamuda,an engineering and construction company, and members of the YTL family of companies, including YTL Cement, YTL Corp and YTLPower International.

Outlook and strategyMalaysia’s export-led economy is likely to suffer from the recession in the world’s developed countries. The stock market seems expensiverelative to other markets of comparable risk. But the country’s nagging political uncertainty seems to be easing and the government is likely toact to support the economy in the face of reduced demand for Malaysian exports. Private consumption is resilient and corporate earnings aredue to benefit from tax cuts in 2008 and 2009.



33

International Opportunities Funds – North America (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceIn 2008 equity investors witnessed one of the most brutal equity markets in Wall Street’s history. U.S. stocks lost $10.4 trillion or 54% oftheir market value from the market record in October 2007 to the bear market low in November 2008, based on the Wilshire 5000 totalmarket index. At year end the Wilshire was still $8.4 trillion below its 2007 record. Stock market volatility was startling and unprecedentedin 2008. Stocks soared one day and collapsed the next. Analysts blamed the violent market swings on fast moving hedge funds and the heavyuse of borrowed money.

The S&P 500 skidded 38.3% percent for the year to finish the worst calendar year since 1931. The best performing sectors in the S&P 500for 2008 were the defensive areas of Consumer Staples (-15.4%) and Healthcare (-22.8%). The worst performing sectors were Financials(-55.3%) and Materials (-45.7%), which were victims of turmoil in the financial markets and plummeting commodity prices.

For the year ended December 31, 2008 the Sub-Fund decreased 42.8% versus its benchmark, the S&P 500 Index, which lost 38.3%.

Factors affecting performanceThe Sub-Fund’s underperformance can be primarily attributed to individual stock selection and in particular to some of the stocks in thefinancial sector and other economically sensitive areas. Defensive sectors such as consumer staples and healthcare tended to hurt Sub-Fundperformance as the portfolio had an underweight in these sectors. Because of the turbulence in the financial markets, investors appeared toflock to these so called “safe havens”. The energy sector helped Sub-Fund performance.

Individual stock names held that helped Sub-Fund performance included Sherwin-Williams, Archer Daniels Midland and Nucor. Sherwinrecently announced better than expected third quarter results and analysts are encouraged by the company’s aggressive pricing actions as well asits ongoing self-help efforts including expense control, working capital reduction, and closure of redundant stores. Archer Daniels Midlandhas benefited from lower corn input costs and cost savings realizations. Nucor benefited from its use of electric furnaces (as opposed totraditional blast furnaces) and also benefited from lower prices for scrap metal which it uses to make steel.

Individual stock names held that detracted from Sub-Fund performance in the period included Citigroup, Newfield Exploration andAbercrombie & Fitch. Citigroup’s stock suffered due to a combination of company-specific credit and capital concerns. The government’sTARP program has strengthened Citigroup with respect to both of those issues. Some additional names that detracted from Sub-Fundperformance included Fannie Mae, American International Group, Washington Mutual and Wachovia; all four positions were sold in theperiod.

Key changes to the portfolioKey changes to the portfolio included the purchase of several new names such as technology stocks, Avnet and Ingram Micro, and industrialstocks, Terex Corp., Spirit AeroSystems Holdings, and Textron as well as Walgreen, FedEx and Corning, to name a few. In addition to thenames mentioned above, sales that occurred in the period included Motorola, Transocean, Tyco International Ltd., Borg Warner, Brunswick,Ford Motor, General Motors, Liz Claiborne, Sovereign Bancorp, Washington Mutual and Capital One Financial, among others.

At year end the Sub-Fund was overweight (relative to the S&P 500 Index) in the financials, consumer discretionary, and materials sectors andwas underweight in the utilities, health care, information technology and consumer staples sectors.



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Outlook and strategyThe economic outlook continues to be grim as consumer’s battle high unemployment, restricted access to credit, a weak housing market andnegative investment returns. Deflation is likely to be a defining influence in 2009. Concern over a sustained deflationary spiral like in the1930’s could intensify an economic slowdown.

The fund manager believes intense fear has been a principal driver in the markets unrest. Stock market volatility is likely to ease as effects ofpolicy easing take hold. The fund manager believes the market’s current valuation is very attractive. The Sub-Fund is cheap relative to theoverall market as demonstrated by several portfolio metrics such as portfolio price to earnings and price to cash flow. The fund managercontinues to favor stocks within the consumer discretionary and financial sectors. The fund manager believes these sectors which have beenhardest hit are still very attractive on a long-term basis and offer significant upside potential using a normal 2-3 year investment time horizon.



35

International Opportunities Funds – North America Value (“Sub-Fund”)

Performance

*September 3, 2007, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceIn 2008 equity investors witnessed one of the most brutal equity markets in Wall Street’s history. U.S. stocks lost $10.4 trillion or 54% oftheir market value from the market record in October 2007 to the bear market low in November 2008, based on the Wilshire 5000 totalmarket index. At year end the Wilshire was still $8.4 trillion below its 2007 record. Stock market volatility was startling and unprecedentedin 2008. Stocks soared one day and collapsed the next. Analysts blamed the violent market swings on fast moving hedge funds and the heavyuse of borrowed money.

The S&P 500 skidded 38.3% percent for the year to finish the worst calendar year since 1931. The best performing sectors in the S&P 500for 2008 were the defensive areas of Consumer Staples (-15.4%) and Healthcare (-22.8%). The worst performing sectors were Financials(-55.3%) and Materials (-45.7%), which were victims of turmoil in the financial markets and plummeting commodity prices.

For the period ended December 31, 2008 the Sub-Fund decreased 49.7% versus its benchmark, which decreased 40.5%.

Factors affecting performanceThe Sub-Fund’s underperformance (relative to the S&P 500 Index) can be primarily attributed to individual stock selection and in particularto some of the stocks in the financial sector and other economically sensitive areas. Defensive sectors such as consumer staples and healthcaretended to hurt Sub-Fund performance as the portfolio had an underweight in these sectors. Because of the turbulence in the financial markets,investors appeared to flock to these so called “safe havens”. The underweight in the energy sector helped Sub-Fund performance.

Individual stock names held that helped Sub-Fund performance included Wells Fargo, Sherwin-Williams, and Comcast. Sherwin recentlyannounced better than expected third quarter results and analysts are encouraged by the company’s aggressive pricing actions as well as itsongoing self-help efforts including expense control, working capital reduction, and closure of redundant stores.

Individual stock names held that detracted from Sub-Fund performance in the period included Citigroup, Newfield Exploration and DowChemical. Citigroup’s stock suffered due to a combination of company-specific credit and capital concerns. The government’s TARP programhas strengthened Citigroup with respect to both of those issues. Some additional names that detracted from Sub-Fund performance includedFannie Mae, American International Group, Wachovia and Washington Mutual; all four positions were sold in the period.

Key changes to the portfolioKey changes to the portfolio included the purchase of several new names such as technology stocks, Avnet and Ingram Micro, and industrialstocks, Terex Corp., Spirit AeroSystems Holdings, and Textron as well as Goldman Sachs and Morgan Stanley, to name a few.

In addition to the names mentioned above, sales that occurred in the period included Borg Warner, Brunswick, Ford Motor, General Motors,Liz Claiborne, Sovereign Bancorp and Sprint Nextel.

At year end the Sub-Fund was overweight (relative to the S&P 500 Index) in the financials, consumer discretionary, and materials sectors andwas underweight in the consumer staples and health care sectors.



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Outlook and strategyThe economic outlook continues to be grim as consumer’s battle high unemployment, restricted access to credit, a weak housing market andnegative investment returns. Deflation is likely to be a defining influence in 2009. Concern over a sustained deflationary spiral like in the1930’s could intensify an economic slowdown.

The fund manager believes intense fear has been a principal driver in the markets unrest. Stock market volatility is likely to ease as effects ofpolicy easing take hold. The fund manager believes the market’s current valuation is very attractive. The Sub-Fund is cheap relative to theoverall market as demonstrated by several portfolio metrics such as portfolio price to earnings and price to cash flow. The fund managercontinues to favor stocks within the consumer discretionary and financial sectors. The fund manager believes these sectors which have beenhardest hit are still very attractive on a long-term basis and offer significant upside potential using a normal 2-3 year investment time horizon.



37

International Opportunities Funds – Pan European (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe period under review was an extremely challenging time for investors and companies alike. European equities fell heavily as the full extentof the global credit crisis came to light. Severe problems in the world's financial markets and the prospect of an economic slowdown causedmany investors to indiscriminately dispose of their equity holdings and many companies across the continent suffered regardless of the long-term fundamentals of the underlying businesses. Against this uncertain backdrop, large, well-established companies outperformed theirsmaller, less well-known peers.

For the year ended December 31, 2008, the Sub-Fund dropped 45.9%, outperforming a decline of 46.0% from its benchmark, the FTSEWorld Europe Index.

Factors affecting performanceInvestors’ flight to safety meant that the fund’s more defensive holdings, including German glasses retailer Fielmann and Belgian discountretailer Colruyt managed to withstand the volatility in equity markets. Both Fielmann and Colruyt are regarded as businesses that can achievesustainable growth in their earnings throughout the economic cycle.

Oil & gas exploration group Tullow Oil, the fund’s largest holding as at December 31, 2008, extended its good performance. As well asbenefiting from rising oil prices in the first half of the period, the company also announced substantial discoveries in Ghana and Uganda.These findings further enhanced Tullow's already large portfolio of assets, which extends from the North Sea to Asia and the Indiansubcontinent. Positive drilling updates for the sites in Uganda and Ghana were released in December.

In contrast, the less-than-favourable circumstances of the past 12 months bruised confidence in firms that are more dependent on a healthyeconomy, including car parts manufacturer Elringklinger. Many investors sold their holdings in the German enterprise because of their fearsover the prospect of an economic downturn, which would result in people spending less on the purchase of non-essential items, such as cars.The fund manager disposed of this holding during the period.

Businesses with exposure to Eastern Europe, such as Turkish bank Turkiye Vakiflar, were also earmarked by investors as too risky given thedifficult conditions. Heightened concerns about the political situation in Turkey and the lack of economic reforms hurt the company's shareprice as well. However the fund manager remains confident of Turkiye Vakiflar’s ability to develop its retail and commercial bankingoperations, and continues to believe that the business represents good value.

Key changes to the portfolioThe Sub-Fund's position in RHI, a manufacturer of linings for steel furnaces was disposed while its holdings in car paints manufacturerDuerr and surfaces maker, in particular veneers, Surteco were reduced in view of their business vulnerability to the current downturn. Aholding was established in German software giant SAP. The company is well placed to continue to grow its earnings despite the economicclimate thanks to its recurring revenues, the ability to generate cash and limited competition in its sector. The fund manager bought a positionin Reinet Investments, an investment vehicle that gives the Sub-Fund access to shares in British American Tobacco at a discount. This holdingprovides the Sub-Fund’s shareholders with investment in a well-established defensive business, which should produce sustainable returnsthroughout the economic cycle.



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Outlook and strategyAgainst a backdrop of weakening economic growth and unresolved issues in the world’s financial markets, the fund manager believes thatEuropean equities will remain volatile for some time. The fund manager will therefore continue to focus on companies that can grow theirearnings over the long term by generating returns above the cost of capital. Furthermore the fund manager will pay close attention to the Sub-Fund’s investment in companies that are vulnerable to a downturn and favour businesses with a proven ability to improve their earnings at allstages of the economic cycle.



39

International Opportunities Funds – Philippines Equity (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe Sub-Fund underperformed in 2008, losing 57.1% for the full year compared with the 51.9% decline of its benchmark, the MSCIPhilippine Index. But it outperformed the 58.7% average fall of the Sub-Fund’s peer group. A modest cash position helped cushion the Sub-Fund's loss.

Factors affecting performanceThe Sub-Fund’s natural underweight position in Philippine Long Distance Telephone (PLDT) was the main contributor to itsunderperformance as the stock outperformed the benchmark in 2008 on the back of its perceived defensiveness. The stock’s weighting in thebenchmark exceeded 20% but the Sub-Fund’s exposure is capped at 10% to ensure diversification. Negative corporate developments at listedpower generation entities associated with the Lopez family, including First Philippine Holdings and First Gen Corporation, also contributed tothe Sub-Fund’s weakness.

Overweight positions in Pilipino Telephone Company and China Banking Corporation contributed positively to the Sub-Fund’s relativeperformance. Exposure to Petron Corporation, the country’s largest oil refiner, also benefited relative performance as Ashmore Group Plc’stender offer of PHP 6.531 per share in July provided support to Petron’s share price.

Key changes to the portfolioThe Sub-Fund established new positions in Aboitiz Power Corporation, Manila Water Company, Philex Mining Corporation and UniversalRobina. It exited ABS-CBN Holdings, Filinvest Land Corporation, Megaworld Corporation, Paxys Inc. and Petron Corporation.

Outlook and strategyThe Philippines’ equity market has held up relatively well in recent months as compared with other Asian emerging markets and valuation,though below the historical average, is no longer compelling relative to the other Asian emerging markets. There is risk of further downwardrevisions to corporate earnings forecasts as 2009 estimates remain overly optimistic, in the fund manager’s view. In view of the aboveconsiderations, the fund manager remains cautious about the Philippines market.



40

International Opportunities Funds – Taiwan Equity (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe Sub-Fund underperformed in 2008, losing 48.0% for the full year compared with the 43.7% fall in its benchmark, the Taiwan StockExchange Index, and the average 47.8% loss of the Sub-Fund’s peer group. The Sub-Fund ranked fifth among the eight funds in its peergroup.

Factors affecting performanceDomestic demand plays that proved to be relatively defensive positions in 2008 positively contributed to absolute performance during the yearamid the sharp fall in global demand. KGI Securities, Formosa Petrochemical, Taiwan Mobile and Chunghwa Telecom all positivelycontributed to absolute performance. The Sub-Fund’s top overweight positions continue to be in domestic demand exposure as the fundmanager maintains the defensive posture amid persistent volatility and lack of visibility in global markets.

The Sub-Fund’s technology related holdings restrained performance in 2008. Hon Hai Precision, KYE Systems, Advanced SemiconductorEngineering and AU Optronics were amongst the largest detractors from absolute performance during the year amid a slump in technologydemand that was followed by large earnings downgrades in the industry. Despite an underweight in the stock, the Sub-Fund’s largest holdingremains Taiwan Semiconductor Manufacturing Company (TSMC). The company is likely to be the first foundry to recover and recordinventory rebuild which should result in a structural market share gain. The fund manager is of the view that TSMC is likely to find furthersupport from government measures aimed to aid the DRAM industry. The Sub-Fund’s top overweight position in the tech space is DeltaElectronics. The fund manager likes Delta as it enjoys the best cost structure in a niche industry and offers attractive valuations and high yield.

Key changes to the portfolioDuring the year the Sub-Fund increased exposure to domestic demand driven stocks in an aim to reduce exposure to exporters who are morevulnerable to the global slowdown in demand. The fund manager initiated positions in Asia Cement, China Life Insurance, ChunghwaTelecom, Formosa Petrochemical, President Securities, Taiwan Fertilizer, Taiwan Mobile, and Tatung.

In return the fund manager exited the Sub-Fund’s position in stocks that are vulnerable to a slowdown: Asustek, Chi Mei Optoelectronics,Wistron and also Yang Ming Marine.

Outlook and strategyThe fund manager believes the long-term outlook for Taiwan is encouraging but expect near-term volatility as weak demand for exportsprompts the lowering of consensus earnings forecasts. Economic growth and asset reflation can be expected in the medium term as relationswith China warm up. Shareholder value is benefiting from capital reductions, share buybacks, increased dividend payouts, reduced employeestock bonuses and consolidation among companies. The fund manager maintains a cautious outlook in the near term in view of the impactthat a synchronized global recession will have on Taiwan’s exporters and factory outputs.



41

International Opportunities Funds – Thailand Equity (“Sub-Fund”)

Performance


Manager commentary

Sub-FundperformanceThe Sub-Fund posted a -45.7% return in 2008 in US dollar terms as the benchmark SET50 Index lost 49.2%, leading to an outperformanceof 3.5%.

Factors affecting performanceThe Sub-Fund did well by its holdings in Thai Tap Water Supply Co. and telcos such as Advanced Information Services (AIS) and TotalAccess Communication. The fund manager likes Thai Tap Water’s defensive quality and growth profile. Falling interest rates will boost thecompany’s earnings due to lower interest costs. The fund manager held AIS as a pure domestic play. The cellular phone service provider enjoyssustainable growth in prepaid revenue, data revenue as well as international long distance revenue. The fund manager expects Total Access tobenefit from the improving competitive telco landscape and the fund manager likes the latter’s mid-term story of rolling out wirelessbroadband. Both telcos outperformed the benchmark in 2008. Electricity Generating Pcl proved resilient and the fund manager likes itssteady cashflows. Siam Makro, the nation’s largest cash-and-carry wholesaler, fared well as it was expected to benefit from improvement inupcountry wealth.

PTT Chemical Pcl, Thailand’s largest olefins maker, weakened the Sub-Fund’s performance as the stock lost 74% last year on concern saleswill drop on falling prices of its products as petrochem prices have declined. PTT Pcl, Thailand’s biggest energy company, also hamperedreturns as its shares fell on concern its refinery units will continue to suffer from falling oil prices. Banks such as Kasikornbank were among thedetractors as the slowing economic growth highlighted the downside risk on Thai banks’ profitability. Kasikornbank cut its 2009 loan growthtarget for a second time in December as the outlook for the economy worsened. The fund manager continues to overweight Thai banksthough as the credit cycle in the country has been benign and that banks’ have resilient balance sheet. Property stocks such as Quality Houselast year detracted from performance amid a weaker outlook for real estate.

Key changes to the portfolioThe Sub-Fund created a new position in Hemaraj Land Development, one of Thailand’s biggest industrial land developer, which said itexpects to maintain its income in 2009 by boosting its utilities business to offset an expected decline in sales. The Sub-Fund also added MajorCineplex and Thai Tap Water. The Sub-Fund sold down its position in construction company, Italian Thai Dev, mobile network operator,True Corp and property firms, Quality House and Land & Houses.

Outlook and strategyThailand has the lowest price to earnings ratio, the highest dividend yield and one of the highest returns on equity in Asia. The politicalturmoil and the impact of high oil prices over the last two years have created a low-base effect for earnings of Thai companies. That has createda potential re-rating benefit on increasing earnings expectations. Political risk appears to be fully discounted in current prices. Hopes are highthe new Prime Minister Abhisit Vejjajiva will restore confidence and spur economic growth with his 300 billion baht spending.



42

International Opportunities Funds – US Bond (“Sub-Fund”)

Performance

*November 30, 2007, Class A

Source: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary


The erosion of capital in the financial sector escalated in 2008 in sympathy with housing market declines. Initially housing market declineswere the driver of financial company write-downs, which in turn led to de-leveraging pressures and worsening capital market conditions. Asthe year progressed, an all out financial system/liquidity crises ensued, reaching a new phase in September of 2008 as access to new capital forfinancial companies was essentially turned off corresponding with the bankruptcy of Lehman Brothers. Investment grade credits, being largelycomprised of financial companies who depend on new short term financing, were at the heart of market disruption. The Sub-Fund, whichwas over-weight Financials, particularly in shorter dated paper, was heavily impacted by the unprecedented nature and magnitude of this crises.

For the year ending December 31, 2008, the Sub-Fund declined 1.1% versus the benchmark’s 5.9% return.


The largest contributor to negative relative performance in 2008 was the Sub-Fund’s over-weight to CMBS. The Sub-Fund’s under-weight toTreasuries and Agencies also detracted from relative return, within the extreme flight-to-quality environment of 2008. The Sub-Fund’s under-weight to MBS also detracted from its relative return. The Sub-Fund’s over-weight to Auto Loan and Credit Card ABS was a positive sourceof relative return within the year. The Sub-Fund’s over-weight to corporate credit within the year was an overall detractor from relative returnin 2008. Within the corporate space, the Sub-Fund’s over-weight to Financials was a significant detractor from performance.

Key changes to the portfolio

The Sub-Fund began the year significantly over-weight in corporates as a result of transfers into the Sub-Fund at its inception. The fundmanager gradually reduced corporate positions, adding to structured product (ABS, CMBS, MBS), and Treasuries as the year progressed. Ascorporate positioning was decreased, the fund manager created an over-weight to Financials and an under-weight to Industrials. Within theshift towards structured product, the fund manager added; mostly agency MBS to the Sub-Fund’s MBS allocation; generally short dated, highquality ABS issues to the ABS allocation; and significantly credit enhanced AAA issues to the Sub-Fund’s CMBS allocation.

Outlook and strategy

The US economy is currently in recession and will most likely continue to contract into 2009. That said, cheap valuations incorporate thesedire outlooks and are the basis of the fund manager’s total return outlook. The fund manager expects the 2008 trends of de-leveraging, riskaversion, and impaired liquidity to continue to moderate. Spreads should remain elevated on a historical basis, but well inside the recent widelevels experienced in early December 2008. Record supply of Treasuries will be difficult for the market to absorb, and a gradual increase in risktolerance and desire for yield should redirect flows from Treasuries back into credit risk product in 2009.

Given the economic backdrop, flows will most likely be directed to high quality issuers, supporting the fund manager’s view for generallytighter overall investment grade credit spreads in 2009. While Financials have under-performed in 2008, the fund manager expects cyclicalindustrial sectors’ performance to weaken over the next several months as the real economy continues to weaken. Those industrial companieswith higher than average debt levels or near term re-financing needs remain most at risk.



43

Within the Investment Grade universe, the fund manager believes high quality CMBS and shorter dated high quality ABS which hit extremeand unwarranted valuations in 2008, currently provide the best opportunities. Therefore, the fund manager sees very attractive opportunitiesin default-remote, high quality, secured credit enhanced CMBS and certain shorter dated ABS issues, which the fund manager expects torebound over time. Extreme volatility in MBSmodel pre-payment speeds due to uncertainty surrounding re-financing risks continues to drivethe MBS market and causes us to be cautious on MBS returns going forward.

Although repair will be gradual, the fund manager believes that the many policy actions taken by the US government will continue to helpstabilize the financial system and prevent further bank failures. Furthermore, the massive monetary stimulus enacted by the Fed and promisedfiscal stimulus in 2009 should also help to improve credit conditions and eventually provide impetus for economic growth.



44

International Opportunities Funds – US Corporate Bond (“Sub-Fund”)

Performance

*November 30, 2007, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe erosion of capital in the financial sector escalated in 2008 in sympathy with housing market declines. Initially housing market declineswere the driver of financial company write-downs, which in turn led to de-leveraging pressures and worsening capital market conditions. Asthe year progressed, an all out financial system/liquidity crises ensued, reaching a new phase in September of 2008 as access to new capital forfinancial companies was essentially turned off corresponding with the bankruptcy of Lehman Brothers. Investment grade credits, being largelycomprised of financial companies who depend on new short term financing, were at the heart of market disruption. The Sub-Fund, whichwas over-weight Financials, particularly in shorter dated paper, was heavily impacted by the unprecedented nature and magnitude of this crises.

For the year ending December 31, 2008, the Sub-Fund dipped 5.7% versus the benchmark’s 2.3% loss.

Factors affecting performanceOne of the largest contributors to negative relative performance in 2008 was the Sub-Fund’s out-of-index over-weight to CMBS. The over-weight to Financials also significantly detracted from the Sub-Fund’s relative performance. The Sub-Fund was overweight Financials (Banking,Insurance, Financing companies, etc.), particularly in shorter dated paper, which was disproportionately affected by the global credit crunchthat escalated in the fall. The lack of positioning within the non-corporate segments of the index (Supranational, Government Guarantee,Local Authorities), for which the fund manager has historically substituted bank paper in exchange for extra yield pick-up, were also topunder-performers amid the extreme risk aversion and illiquidity that escalated as the year progressed. The Sub-Fund’s defensive allocation toTreasuries helped mitigate the above detractors, providing one of the largest sources of positive relative return within the year.

Key changes to the portfolioThe fund manager’s bias towards higher quality sector and credit selection somewhat decreased as the year progressed and credit spreadsreached historic wides. The fund manager sought to capitalize on technical dislocation caused by forced sellers, particularly in the last severalmonths of the year, by adding incremental risk. The Sub-Fund ended the year with a marginally lower quality rating and a higher relativeOAS compared with 2007 year end levels. The fund manager maintained a bias for secured structured product as a defensive substitute tounsecured corporate credit and continued to add to CMBS positions as valuations declined. The Sub-Fund’s allocation to Financials wasincreased throughout 2008 as valuations declined and government supportive programs and actions increased. The fund manager increasedthe Sub-Fund’s allocation towards Treasuries in the beginning of the year and then paired it back as spreads began to move to historically widelevels in the latter part of the year.

Outlook and strategyThe US economy is currently in recession and will most likely continue to contract into 2009. That said, cheap valuations incorporate thesedire outlooks and are the basis of the fund manager’s total return outlook. The fund manager expects the 2008 trends of de-leveraging, riskaversion, and impaired liquidity to continue to moderate. Spreads should remain elevated on a historical basis, but well inside the recent widelevels experienced in early December 2008. Record supply of Treasuries will be difficult for the market to absorb, and a gradual increase in risktolerance and desire for yield should redirect flows from Treasuries back into credit risk product in 2009.




45

Within the Investment Grade universe, the fund manager believes high quality CMBS and shorter dated high quality ABS which hit extremeand unwarranted valuations in 2008, currently provide the best opportunities. Therefore, the fund manager sees very attractive opportunitiesin default-remote, high quality, secured credit enhanced CMBS and certain shorter dated ABS issues, which the fund manager expects torebound over time.




46

International Opportunities Funds – US High Investment Grade Bond (“Sub-Fund”)

Performance


Manager commentary

Sub-Fund performanceThe erosion of capital in the financial sector escalated in 2008 in sympathy with housing market declines. Initially housing market declineswere the driver of financial company write-downs, which in turn led to de-leveraging pressures and worsening capital market conditions. Asthe year progressed, an all out financial system/liquidity crises ensued, reaching a new phase in September of 2008 as access to new capital forfinancial companies was essentially turned off corresponding with the bankruptcy of Lehman Brothers. Investment grade credits, being largelycomprised of financial companies who depend on new short term financing, were at the heart of market disruption. The Sub-Fund, whichwas over-weight Financials, particularly in shorter dated paper, was heavily impacted by the unprecedented nature and magnitude of this crises.

For the year ending December 31, 2008, the Sub-Fund dropped 8.8%, versus the benchmark’s 2.2% loss.

Factors affecting performanceOne of the largest contributors to negative relative performance in 2008 was the Sub-Fund’s out-of-index over-weight to CMBS. The over-weight to Financials also significantly detracted from the Sub-Fund’s relative performance. The Sub-Fund was overweight Financials (Banking,Insurance, Financing companies, etc.), particularly in shorter dated paper, which was disproportionately affected by the global credit crunchthat escalated in the latter part of the year. The Sub-Fund’s defensive allocation to Cash and Treasuries and under-weight to REITs helpedmitigate the above detractors, providing some of the largest sources of positive relative return within the year.

Key changes to the portfolioThe fund manager’s bias towards higher quality sector and credit selection somewhat decreased as the year progressed and credit spreadsreached historic wides. The fund manager sought to capitalize on technical dislocation caused by forced sellers, particularly in the last severalmonths of the year, by adding incremental risk. The Sub-Fund ended the year with a marginally lower quality rating and a higher relativeOAS compared with 2007 year end levels. The fund manager maintained a bias for secured structured product as a defensive substitute tounsecured corporate credit and continued to add to CMBS positions as valuations declined. Positioning in ABS has been decreased with onlyone ABS issue remaining in the portfolio as of December 2008 month-end. The Sub-Fund’s allocation to Financials was increased throughout2008 as valuations declined and government supportive programs and actions increased. The fund manager increased the Sub-Fund’sallocation towards Treasuries in the beginning of the year and then paired it back as spreads began to move to historically wide levels in thelatter part of the year.

Outlook and strategyThe US economy is currently in recession and will most likely continue to contract into 2009. That said, cheap valuations incorporate thesedire outlooks and are the basis of the fund manager’s total return outlook. The fund manager expects the 2008 trends of de-leveraging, riskaversion, and impaired liquidity to continue to moderate. Spreads should remain elevated on a historical basis, but well inside the recent widelevels experienced in early December 2008. Record supply of Treasuries will be difficult for the market to absorb, and a gradual increase in risktolerance and desire for yield should redirect flows from Treasuries back into credit risk product in 2009.




47





48

International Opportunities Funds – US High Yield Bond (“Sub-Fund”)

Performance

* July 15, 2002, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe erosion of capital in the financial sector escalated in 2008 in sympathy with housing market declines. Initially housing market declineswere the driver of financial company write-downs, which in turn led to de-leveraging pressures and worsening capital market conditions. Asthe year progressed, an all out financial system/liquidity crises ensued, reaching a new phase in September of 2008 as access to new capital forfinancial companies was essentially turned off corresponding with the bankruptcy of Lehman Brothers.

As the year progressed, high yield bond prices were particularly affected by dramatic price declines in bank loans, which were dramaticallypressured down due to forced selling by their investor base (margin calls / redemptions within Prime Floating Rate Funds and Hedge Fundsand large unwinds of Total Return Swaps and Collateralized Loan Obligations). High yield spreads (as measured by the Merrill Master IIIndex OAS) widened by as astonishing 1,220 bps – from 592 bps to 1,812. Not surprisingly, the default rate increased, particularly in thelatter half of the year. At the end of November, Moody’s US Speculative Default Rate stood at 3.4%, up from the two-decade low of 1%where it stood at 2007 year-end.

Against this background, during the period under review, the Sub-Fund declined by 24.9%, underperforming its benchmark, the MerrillLynch US High Yield 70% BB-Rated and 30% B-Rated Index, which dropped 19.6%.

Factors affecting performanceThe largest contributor to negative relative performance in 2008 was the Sub-Fund’s over-weight to Gaming, which suffered due to significantconsumer leisure spending reductions. Within the gaming sector, Harrahs and Station Casinos were top under-performers as both struggled toaddress near term maturities and/or heavy leveraged buy out (LBO) related debt loads within the year’s continuously deteriorating creditconditions. The Sub-Fund’s over-weight to auto loan companies was also a large detractor from 2008 relative performance. GMAC and FordMotor Credit bond prices fell as economic and credit conditions worsened and as it became uncertain whether or not their parent companies,GM and Ford, had adequate liquidity to manage through the negative credit cycle and record low auto sales - without government aide. Alarge positive source of relative return came from the Sub-Fund’s defensive allocation towards cash, highlighting the extreme risk aversion thatplagued the market in 2008.

Key changes to the portfolioWithin the last half of the year the fund manager selectively decreased higher risk positions, notably in sectors such as Gaming, Auto Loans,and Chemicals. The Sub-Fund’s allocation to Industrials was downsized, particularly within the last several months of the year, as the fundmanager allocated away from cyclical issuers and sectors such as Basic Industry and Capital Goods as the prospects for the broad economyweakened. Positions in historically more defensive sectors such as Energy, Utilities, and Healthcare were increased in the second half of the yearas economic conditions deteriorated and commodity prices fell.



49

Outlook and strategyThe US economy is currently in recession and will most likely continue to contract into 2009. The fund manager expects that the trends ofrising unemployment, consumer spending retrenchment, and consequential decreased company earnings will continue into the first quartersof 2009. That said, cheap valuations incorporate these dire outlooks and are the basis of the fund manager’s total return outlook. As the fundmanager moves into 2009, the fund manager anticipates that spreads will remain historically high but off the wides reached in mid December2008. The fund manager expects that over the short term (beginning of 2009) high yield bonds upside will be somewhat contained bydeteriorating corporate profits and economic growth. This is not an unattractive situation, however, as even the slightest improvements atcurrent yield levels can cause meaningful spread tightening.

Over a longer term time horizon (18-24 months), the fund manager anticipates that gradual repair in economic conditions will lead torecovery in the high yield market, most likely providing meaningful total return. Even so, defaults will probably significantly increase in 2009as a consequence to negative GDP growth, rising bank lending standards, and a high cost of capital. Lower quality / higher levered companies,as well as those especially dependent on cyclical consumer spending, will be most affected. Higher default; however, does not necessarilycoincide with poor performance. December 2008 serves to demonstrate this phenomenon: the default rate continued to increase while overallperformance was strong. The fund manager expects that exchange offerings will increase and be a predominant theme in 2009. Exchangeofferings are voluntary negotiations between company and bondholders, and if completed, generally result in exchanged bond prices materiallyhigher than prices prior to the exchange, as company economics generally improve with a successful exchange.



50

International Opportunities Funds – US Investment Grade Bond (“Sub-Fund”)

Performance

* July 15, 2002, Class A

Source: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary


The erosion of capital in the financial sector escalated in 2008 in sympathy with housing market declines. Initially housing market declineswere the driver of financial company write-downs, which in turn led to de-leveraging pressures and worsening capital market conditions. Asthe year progressed, an all out financial system/liquidity crises ensued, reaching a new phase in September of 2008 as access to new capital forfinancial companies was essentially turned off corresponding with the bankruptcy of Lehman Brothers. Investment grade credits, being largelycomprised of financial companies who depend on new short term financing, were at the heart of market disruption. The Sub-Fund, whichwas over-weight Financials, particularly in shorter dated paper, was heavily impacted by the unprecedented nature and magnitude of this crises.

For the year ending December 31, 2008, the Sub-Fund dipped 13.6% vis-à-vis the benchmark’s 8.1% loss.


One of the largest contributors to negative relative performance in 2008 was the Sub-Fund’s out-of-index over-weight to CMBS. The over-weight to Financials also significantly detracted from the Sub-Fund’s relative performance. The Sub-Fund was over-weight Financials(Banking, Insurance, Financing companies, etc.), particularly in shorter dated paper, which was disproportionately affected by the global creditcrunch that escalated in the fall. The Sub-Fund’s defensive allocation to Treasuries helped mitigate the above detractors, providing one of thelargest sources of positive relative return within the year.

Key changes to the portfolio

The fund manager’s bias towards higher quality sector and credit selection somewhat decreased as the year progressed and credit spreadsreached historic wides. The fund manager sought to capitalize on technical dislocation caused by forced sellers, particularly in the last severalmonths of the year, by adding incremental risk. The Sub-Fund ended the year with a marginally lower quality rating and a higher relativeOAS compared with 2007 year end levels. The fund manager maintained a bias for secured structured product as a defensive substitute tounsecured corporate credit and continued to add to CMBS positions as valuations declined. Positioning in ABS has been decreased with onlytwo ABS issuers remaining in the portfolio. The fund manager’s preference for Financials over equally or lower rated Industrials continuedthroughout 2008 as valuations declined and government supportive programs and actions increased. The amount of the Sub-Fund’s overallrelative over-weight in Financials did not substantially change as compared to the end of 2007; however, the source of the over-weight hasshifted from Banking more towards Insurance and finance companies. The fund manager increased the Sub-Fund’s allocation towardsTreasuries in the beginning of the year and then paired it back as spreads began to move to historically wide levels in the latter part of the year.

Outlook and strategy

The US economy is currently in recession and will most likely continue to contract into 2009. That said, cheap valuations incorporate thesedire outlooks and are the basis of the fund manager’s total return outlook. The fund manager expects the 2008 trends of de-leveraging, riskaversion, and impaired liquidity to continue to moderate. Spreads should remain elevated on a historical basis, but well inside the recent widelevels experienced in early December 2008. Record supply of Treasuries will be difficult for the market to absorb, and a gradual increase in risktolerance and desire for yield should redirect flows from Treasuries back into credit risk product in 2009.



51






52

International Opportunities Funds – Vietnam Equity (“Sub-Fund”)

Performance

*July 3, 2007, Class JSource: Prudential Asset Management (Singapore) Limited (Sub-Sub-Funddata) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performanceThe Sub-Fund dropped 67.1% since its inception on July 3, 2007, underperforming the benchmark by 70bps.

Factors affecting performanceThe overweight positions in domestic companies like DHG Pharmaceutical and Vinh Son-Song Hinh Hydropower contributed toperformance. DHG trades a wide range of pharmaceutical products in Vietnam where business continues to be relatively resilient. Vinh Son isa hydro-power electric generating company which has steady income streams from electricity sales. An underweight position in SaigonSecurities also contributed as its stock broking business too fell in line with the stock market.

In contrast, one main source of underperformance was the underweight position in Vincom, a real estate development company. The fundmanager remains underweight the stock as valuations are not attractive and the property market outlook remains weak. The overweightpositions in two food producers, North Kinhdo Food and Vinamilk also curbed performance. The fund manager continues to like bothnames as they are leading brand names with dominant market shares in the confectionary and milk beverage space respectively.

Key changes to the portfolioThe fund manager added a new food producer name to the portfolio, Nam Viet Corporation which processes and export fish and otherseafood products. The fund manager continues to like the resilient nature of the pharmaceutical businesses and further increased theoverweight positions in DHG Pharmaceutical and Domesco Medical. The fund manager liquidated holdings in the following stocks - Cable& Telecom, Danang Rubber and HCM City Infrastructure to fund the purchases.

Outlook and strategyThe external shock of a global recession will have a negative impact on an emerging economy like Vietnam that is significantly reliant onexports and foreign direct investment. The fund manager has also seen increased risk aversion where investors shun away from risky emerging/frontier markets like Vietnam. As a result, valuations of the market become have become less demanding compared to its history but still notcompelling when compared to the region. The medium/long-term growth potential of Vietnam should remain intact if the government cansuccessfully implement policies to maintain macroeconomic stability.



53

International Opportunities Funds – World Value Equity (“Sub-Fund”)

Performance

*September 25, 1998, Class ASource: Prudential Asset Management (Singapore) Limited (Sub-Fund data) & Bloomberg (Benchmark), in USD, bid-to-bid, net income reinvested.

Manager commentary

Sub-Fund performance2008 was a grim year for global economy following spillovers from the ongoing slide in the US housing into the global financial system.Global equities suffered at least 30% falls. Credit markets deteriorated over the year, but went into freeze after Lehman failed in September.That helped push teetering real economies over the edge, and sentiment swung quickly from fear of inflation to fear of deflation. Due tocomparative valuations, European equity exposure was topped up to 2.0% relative to the benchmark, via -2.0% short in North Americanequities in November. Asian equity exposure was kept neutral.

For year ended December 31, 2008, the Sub-Fund decreased 41.9%, versus benchmark’s 40.3% decline. Since its September 1998 inception,the Sub-Fund has achieved a cumulative return of 1.0% against the benchmark return of 1.8%.

Factors affecting performanceIn the US portion of the Sub-Fund positive contribution came from individual names like Nucor and Sherwin-Williams. Overweight infinancials & mining and underweight in utilities however hurt the overall performance. The positive contribution to Japan portion of the Sub-Fund was due to overweight in telecommunications & consumer staples. Underweight in defensive sectors such as utilities broughtperformance lower. Within the Asian portion of the Sub-Fund, overweight in Australian consumer staples and utilities exposure fared wellwhile overweight in property stocks hurt the performance. In Europe, underweight in financials and banking sector helped the performancewhile overweight in autos hurt. Overweight in telecommunications and media helped performance as well.

Key changes to the portfolioOverall in Asia, major positions were initiated in Sony, Yamaha Motor, NWS Holdings, Link REIT, SingTel & Suncorp-Metway. Noholdings were completely liquidated. In the US, holdings in Fannie Mae, Washington Mutual, AIG, GM and Ford were liquidated andinstead established in Newell Rubbermaid, Allegheny Technologies, Textron and Avnet.

Outlook and strategyThe fund’s benchmark is approximately 52% North American Equities, 34% Pan European Equities, 10% Japanese Equities and 4% PacRim Equities. The Sub-Fund is long Europe, short US and neutral Japan and Pacific Rim Equities relative to benchmark.

Global equity markets seem to be discounting multi-year below trend global GDP growth at worst while the immediate macro outlook forthe US and Europe is negative with slower projected growth for Asia. However, policymakers’ focus to promote growth lends some optimismto the Q1 2010 growth expectations. Medium-term valuations are attractive but expect 2009 to be a volatile and challenging year.



54

To the Shareholders ofInternational Opportunities Funds SICAVAerogolf Center1A, HoehenhofL-1736 SenningerbergGrand Duchy of Luxembourg

Following our appointment by the General Meeting of the Shareholders of International Opportunities Funds SICAV (the “SICAV”) on April29, 2008, we have audited the accompanying financial statements of International Opportunities Funds SICAV and each of its sub-funds,which comprise the combined statement of net assets and the statements of investments as at December 31, 2008 and the combinedstatement of operations and changes in net assets for the year then ended and a summary of significant accounting policies and otherexplanatory notes to the financial statements.

Responsibility of the Board of Directors of the SICAV for the financial statements

The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance withLuxembourg legal and regulatory requirements relating to the preparation of financial statements. This responsibility includes: designing,implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free frommaterial misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimatesthat are reasonable in the circumstances.

Responsibility of the Réviseur d’Entreprises

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance withInternational Standards on Auditing as adopted by the Institut des Réviseurs d’Entreprises. Those standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the judgement of the Réviseur d’Entreprises, including the assessment of the risks of material misstatement ofthe financial statements, whether due to fraud or error. In making those risk assessments, the Réviseur d’Entreprises considers internal controlrelevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors ofthe SICAV, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of International Opportunities Funds SICAV andeach of its sub-funds as of December 31, 2008 and of the results of their operations and changes in their net assets for the year then ended inaccordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

Other matter

Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject tospecific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on suchinformation. However, we have no observation to make concerning such information in the context of the financial statements taken as awhole.

Luxembourg, March 17, 2009KPMG Audit S.à r.l.

Réviseurs d’Entreprises

Nathalie DOGNIEZ


REPORT OF THE RÉVISEUR D’ENTREPRISES

55

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008

56ASIA

ASIAN

ASIAN

ASIAN

ASIAN

PACIFIC

ASIAN

ASIAN

ASIAN

EQUITY

INFR

AST

RUCTURE

LOCAL

PROPE

RTY

CHIN

AEQUITY

BOND

DYNAMIC

EQUITY

INCOME

EQUITY

BOND

SECURITIES

EQUITY

USD

USD

USD

USD

USD

USD

USD

USD

USD

ASSETS

Investmentsin

securitiesat

cost

1,252,854,819

780,482,877

7,232,344

830,861,186

2,979,376

109,586,280

346,053,892

12,086,324

258,675,091

Unrealised

appreciatio

n/(depreciation)

(472,431,238)

(124,722,349)

(2,745,229)

(341,712,254)

(1,030,112)

(38,028,636)

(25,496,160)

(5,570

,478)

(98,703,172)

Investmentsin

securitiesat

marketvalue(note2(a))

780,423,581

655,760,528

4,487,115

489,148,932

1,949,264

71,557,644

320,557,732

6,515,846

159,971,919

Cashat

bank

16,414,898

7,716,648

40,386

5,835,863

75,555

1,101,142

5,725,969

203,284

12,327,413

Cashequivalents(tim

edeposits)

—45,427,481

——

——

8,754,955

——

Amountsreceivableon

saleof

investments

43,406

—1,160

81,825

——

2,113,263

——

Amountsreceivableon

subscriptio

ns—

615,259

—3,215,799

—11,911

28,882

—25,280

Interestanddividend

sreceivable,net

249,664

13,378,671

4,466

—3,813

214,266

3,880,292

72,111

—

Unrealised

appreciatio

non

futurescontracts

——

——

——

——

—

Unrealised

appreciatio

non

forwardforeignexchange

con-

tracts(note8)

——

——

——

158,886

——

Other

assets

——

——

——

——

—

Totalassets

797,13

1,54

972

2,89

8,58

74,53

3,12

749

8,28

2,41

92,02

8,63

272

,884

,963

341,21

9,97

96,79

1,24

117

2,32

4,61

2

LIABILITIES

Amountspayableon

purchase

ofinvestments

——

——

——

——

4,315,633

Amountspayableon

redemptions

—2,235

—5,266

—202,078

974

——

Unrealised

depreciatio

non


con-

tracts(note8)

—114,859

——

——

——

—

Managem

entfees

payable(note3)

—12,764

—324,188

—85,799

1,259

146,837

Taxandexpenses

payable

108,785

104,305

3,524

103,403

1,645

20,577

62,231

3,936

35,167

Other

liabilities

——

——

——

——

280

Totalliabilities

108,78

523

4,16

33,52

443

2,85

71,64

530

8,45

464

,464

3,95

04,35

7,91

7

TOTA

LNETASSETVA

LUE

797,02

2,76

472

2,66

4,42

44,52

9,60

349

7,84

9,56

22,02

6,98

772

,576

,509

341,15

5,51

56,78

7,29

116

7,96

6,69

5

Num

berof

ClassAshares

outstand

ing

—1,188,335.044

—2,049,913.192

100.000

9,785,927.957

118,701.530

251.096

63,345.907

Num

berof

ClassADshares

outstand

ing

—4,748.114

——

——

——

—

Num

berof

ClassAJshares

outstand

ing

——

——

——

——

—

Num

berof

ClassBshares

outstand

ing

——

—5,705,626.858

——

——

—

Num

berof

ClassC

shares

outstand

ing

——

—18,837,539.216

—515,464.375

——

—

Num

berof

ClassD

shares

outstand

ing

26,224,024.030

39,401,199.567

500,000.000

5,798,922.671

250,000.000

—21,040.186

1,340,489.887

9,857,434.858

Num

berof

ClassD

Dshares

outstand

ing

——

——

——

——

—

Num

berof

ClassD

DJshares

outstand

ing

——

——

——

——

—

Num

berof

ClassD

Jshares

outstand

ing

——

——

——

——

—

Num

berof

ClassEshares

outstand

ing

111,290,137.876

32,367,907.575

——

——

35,991,031.521

——

Num

berof

ClassFshares

outstand

ing

—250.000

—245,987.778

—400.000

14,983.143

2,808.686

—

Num

berof

ClassF D

shares

outstand

ing

——

——

——

—25,313.024

—

Num

berof

ClassJshares

outstand

ing

——

—849,459.165

—1,128,833.352

——

4,625,779.030

Net

assetvalueperClassAshare

—USD

10.321

—USD

8.722

USD

5.892

USD

6.203

USD

9.619

USD

4.860

USD

6.284

Net

assetvalueperClassADshare

—USD

9.884

——

——

——

—

Net

assetvalueperClassAJshare

——

——

——

——

—

Net

assetvalueperClassBshare

——

—USD

4.501

——

——

—

Net

assetvalueperClassC

share

——

—USD

17.993

—USD

6.786

——

—

Net

assetvalueperClassD

share

USD

5.787

USD

10.857

USD

9.059

USD

18.751

USD

8.106

—USD

10.573

USD

4.994

USD

13.992

Net

assetvalueperClassD

Dshare

——

——

——

——

—

Net

assetvalueperClassD

DJshare

——

——

——

——

—

Net

assetvalueperClassD

Jshare

——

——

——

——

—

Net

assetvalueperClassEshare

USD

5.798

USD

8.73

——

——

USD

9.438

——

Net

assetvalueperClassFshare

—SG

D8.489

—SG

D7.490

—SG

D6.455

SGD

9.064

SGD

4.823

—

Net

assetvalueperClassF D

share

——

——

——

—SG

D4.685

—

Net

assetvalueperClassJshare

——

—USD

6.274

—USD

7.422

——

USD

6.408

The

accompanyingnotesform

anintegralpartof

thesefinancialstatem

ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008

57

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008(continued)

58

EUROPE

AN

GREAT

ER

DRAGON

INVEST

MENT

GLO

BALMARKET

GLO

BAL

CHIN

AHONG

KONG

INDIA

INDONESIA

JAPA

NPE

ACOCK

GRADEBOND

NAV

IGAT

OR

TECHNOLO

GY

EQUITY

EQUITY

EQUITY

EQUITY

DYNAMIC

USD

EUR

USD

USD

USD

USD

USD

USD

USD

ASSETS

Investmentsin

securitiesat

cost

200,888,083

222,532,972

9,682,417

36,892,701

45,982,386

850,655,211

73,349,505

30,150,771

4,933,218

Unrealised

appreciatio

n/(depreciation)

(74,135,085)

(29,087,372)

(363,555)

(1,242,979)

(15,066,427)

(405,815,795)

(24,983,511)

(13,262,27

6)(1,495,464)

Investmentsin

securitiesat


126,752,998

193,445,600

9,318,862

35,649,722

30,915,959

444,839,416

48,365,994

16,888,495

3,437,754

Cashat

bank

4,301,588

1,127,999

3,421,273

3,894,337

439,384

14,812,377

4,345,188

1,233,996

10,035

Cashequivalents(tim

edeposits)

——

6,420,116

——

——

——

Amountsreceivableon

saleof

investments

——

—29,750

3,904

4,115,049

——

—

Amountsreceivableon

subscriptio

ns558,050

3,300,000

17,611

54,986

26,873

85,000

39,484

——

Interestanddividend

sreceivable,net

86,299

5,554,361

15,987

12,038

37,391

1,274,274

59,975

814

4,179

Unrealised

appreciatio

non

futurescontracts

——

107,102

——

——

——

Unrealised

appreciatio

non


con-

tracts(note8)

——

——

——

——

—

Other

assets

——

—130

——

19,540

——

Totalassets

131,69

8,93

520

3,42

7,96

019

,300

,951

39,640

,963

31,423

,511

465,12

6,11

652

,830

,181

18,123

,305

3,45

1,96

8

LIABILITIES

Amountspayableon

purchase

ofinvestments

361,689

——

——

9,773,664

928,493

29,461

—

Amountspayableon

redemptions

——

—43,489

——

60,201

——

Unrealised

depreciatio

non


con-

tracts(note8)

——

——

——

——

—

Managem

entfees

payable(note3)

179,158

1,806

2,513

35,632

28,994

—3,963

3,596

—

Taxandexpenses

payable

69,418

29,897

3,618

11,307

10,892

121,270

29,900

9,356

1,833

Other

liabilities

——

——

——

——

—

Totalliabilities

610,26

531

,703

6,13

190

,428

39,886

9,89

4,93

41,02

2,55

742

,413

1,83

3

TOTA

LNETASSETVA

LUE

131,08

8,67

020

3,39

6,25

719

,294

,820

39,550

,535

31,383

,625

455,23

1,18

251

,807

,624

18,080

,892

3,45

0,13

5

Num

berof

ClassAshares

outstand

ing

11,649,552.602

185,538.959

55,084.291

179,890.824

400,894.306

100.000

254.013

65,794.576

—

Num

berof

ClassADshares

outstand

ing

——

——

——

——

—

Num

berof

ClassAJshares

outstand

ing

——

——

——

——

—

Num

berof

ClassBshares

outstand

ing

——

——

——

——

—

Num

berof

ClassC

shares

outstand

ing

——

225,644.577

15,407,047.145

1,906,688.756

——

——

Num

berof

ClassD

shares

outstand

ing

1,195,969.054

20,560,781.802

658,409.478

——

52,885,708.882

3,211,677.690

13,771.070

500,000.000

Num

berof

ClassD

Dshares

outstand

ing

——

——

——

——

—

Num

berof

ClassD

DJshares

outstand

ing

——

1,426,505.228

——

——

——

Num

berof

ClassD

Jshares

outstand

ing

——

——

——

——

—

Num

berof

ClassEshares

outstand

ing

——

——

——

——

—

Num

berof

ClassFshares

outstand

ing

——

—250.000

830.493

——

——

Num

berof

ClassF D

shares

outstand

ing

——

——

——

——

—

Num

berof

ClassJshares

outstand

ing

——

——

——

4,073,809.967

3,416,632.470

—

Net


USD

9.914

EUR9.195

USD

8.235

USD

6.709

USD

9.982

USD

5.853

USD

4.982

USD

5.059

—

Net


——

——

——

——

—

Net


——

——

——

——

—

Net


——

——

——

——

—

Net

assetvalueperClassC

share

——

USD

8.498

SGD

3.575

USD

14.359

——

——

Net

assetvalueperClassD

share

USD

13.037

EUR9.809

USD

8.333

——

USD

8.608

USD

9.688

USD

8.946

USD

6.900

Net

assetvalueperClassD

Dshare

——

——

——

——

—

Net

assetvalueperClassD

DJshare

——

JPY723

——

——

——

Net

assetvalueperClassD

Jshare

——

——

——

——

—

Net


——

——

——

——

—

Net


——

—SG

D5.769

SGD

7.867

——

——

Net


share

——

——

——

——

—

Net


——

——

——

USD

5.079

USD

5.159

—

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008(continued)

59

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008(continued)

60

NORTH

JAPA

NJAPA

NSM

ALL

ER

KOREA

LATIN

AMERIC

AN

MALA

YSIA

NORTH

AMERIC

AN

PAN

PHILIPPINES

EQUITY

COMPA

NIES

EQUITY

EQUITY

EQUITY

AMERIC

AVALU

EEUROPE

AN

EQUITY

USD

USD

USD

USD

USD

USD

USD

USD

USD

ASSETS

Investmentsin

securitiesat

cost

628,432,244

11,740,344

2,679,639

190,649,335

24,095,153

581,027,999

420,982,512

104,965,942

11,229,825

Unrealised

appreciatio

n/(depreciation)

(201,584,366)

(2,457,172)

(872,828)

(114,256,101)

(9,148,185)

(151,881,700)

(147,052,331)

(31,874,153)

(5,466,669)

Investmentsin

securitiesat


426,847,878

9,283,172

1,806,811

76,393,234

14,946,968

429,146,299

273,930,181

73,091,789

5,763,156

Cashat

bank

1,388,528

108,446

112,019

407,034

845,586

721,305

464,121

4,066,750

50,960

Cashequivalents(tim

edeposits)

——

—2,600,000

——

——

—

Amountsreceivableon

saleof

investments

18,496

——

——

——

106,844

40,996

Amountsreceivableon

subscriptio

ns4,913,165

——

——

21,500

—151,869

—

Interestanddividend

sreceivable,net

409,051

38,684

1,114

494,722

21,732

964,581

805,360

26,067

1,706

Unrealised

appreciatio

non

futurescontracts

——

——

——

——

—

Unrealised

appreciatio

non


con-

tracts(note8)

——

——

——

——

—

Other

assets

4,073

——

——

——

——

Totalassets

433,58

1,19

19,43

0,30

21,91

9,94

479

,894

,990

15,814

,286

430,85

3,68

527

5,19

9,66

277

,443

,319

5,85

6,81

8

LIABILITIES

Amountspayableon

purchase

ofinvestments

——

——

——

—99,590

—

Amountspayableon

redemptions

——

——

——

—50,346

—

Unrealised

depreciatio

non


con-

tracts(note8)

——

——

——

——

—

Managem

entfees

payable(note3)

29,917

247

—2,087

3,598

5,590

2539,399

1,620

Taxandexpenses

payable

62,789

2,277

1,689

11,537

6,109

70,331

32,334

26,689

3,273

Other

liabilities

——

——

——

——

—

Totalliabilities

92,706

2,52

41,68

913

,624

9,70

775

,921

32,359

216,02

44,89

3

TOTA

LNETASSETVA

LUE

433,48

8,48

59,42

7,77

81,91

8,25

579

,881

,366

15,804

,579

430,77

7,76

427

5,16

7,30

377

,227

,295

5,85

1,92

5

Num

berof

ClassAshares

outstand

ing

—750.000

100.000

2,700.000

100.000

622,918.481

1,611.770

1,236,412.859

35,675.000

Num

berof

ClassADshares

outstand

ing

——

——

——

——

—

Num

berof

ClassAJshares

outstand

ing

3,586,082.902

——

——

——

——

Num

berof

ClassBshares

outstand

ing

——

——

——

——

—

Num

berof

ClassC

shares

outstand

ing

——

——

——

—5,060,907.087

—

Num

berof

ClassD

shares

outstand

ing

35,825,529.980

—250,000.000

——

60,705,641.746

57,991,881.231

3,739,567.709

—

Num

berof

ClassD

Dshares

outstand

ing

——

——

——

——

—

Num

berof

ClassD

DJshares

outstand

ing

——

——

——

——

—

Num

berof

ClassD

Jshares

outstand

ing

7,971,473.634

——

——

——

——

Num

berof

ClassEshares

outstand

ing

15,322,928.922

1,181,718.970

—20,000,000.000

——

——

—

Num

berof

ClassFshares

outstand

ing

——

——

——

3,172.380

250.000

—

Num

berof

ClassF D

shares

outstand

ing

——

——

——

——

—

Num

berof

ClassJshares

outstand

ing

——

——

2,544,221.142

——

—1,286,478.159

Net


—USD

7.880

USD

5.610

USD

3.953

USD

6.102

USD

6.792

USD

4.648

USD

8.563

USD

4.351

Net


——

——

——

——

—

Net


JPY622

——

——

——

——

Net


——

——

——

——

—

Net

assetvalueperClassC

share

——

——

——

—SG

D8.521

—

Net

assetvalueperClassD

share

USD

6.781

—USD

7.671

——

USD

7.026

USD

4.745

USD

9.793

—

Net

assetvalueperClassD

Dshare

——

——

——

——

—

Net

assetvalueperClassD

DJshare

——

——

——

——

—

Net

assetvalueperClassD

Jshare

JPY611

——

——

——

——

Net


USD

7.299

USD

7.973

—USD

3.994

——

——

—

Net


——

——

——

SGD

5.203

SGD

7.363

—

Net


share

——

——

——

——

—

Net


——

——

USD

6.212

——

—USD

4.428

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008(continued)

61

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008(continued)

62

USHIG

HTAIW

AN

THAILAND

US

USCORPO

RAT

EIN

VEST

MENT

USHIG

HUSIN

VEST

MENT

VIETNAM

WORLD

VALU

EEQUITY

EQUITY

BOND

BOND

GRADEBOND

YIELD

BOND

GRADEBOND

EQUITY

EQUITY

COMBIN

ED

USD

USD

USD

USD

USD

USD

USD

USD

USD

USD

ASSETS

Investmentsin

securitiesat

cost

7,833,429

33,124,066

596,122,706

835,864,861

161,457,629

180,391,472

88,773,955

14,485,125

278,171,496

9,33

9,078,944

Unrealised

appreciatio

n/(depreciation)

(3,323,041)

(11,845,628)

(27,213,095)

(62,695,539)

(14,485,527)

(45,555,612)

(14,306,688)

(9,348,290)

(69,761,009)

(2,610,937,122)

Investmentsin

securitiesat


4,510,388

21,278,438

568,909,611

773,169,322

146,972,102

134,835,860

74,467,267

5,136,83

5208,410,487

6,728,141,822

Cashat

bank

146,087

1,151,815

2—

1,736

7,593

1,738

524,866

4,711,473

98,199,535

Cashequivalents(tim

edeposits)

——

——

——

——

—63,202,552

Amountsreceivableon

saleof

investments

—327,163

——

——

——

39,867

6,921,723

Amountsreceivableon

subscriptio

ns—

—2,488,121

—401,070

6,249,999

2,175,000

—381,862

26,113,731

Interestanddividend

sreceivable,net

——

4,268,128

9,977,683

2,091,363

3,089,803

1,176,957

9,941

440,301

50,941,416

Unrealised

appreciatio

non

futurescontracts

——

——

——

——

—107,102

Unrealised

appreciatio

non


con-

tracts(note8)

——

——

——

——

—158,886

Other

assets

——

——

——

——

—23,743

Totalassets

4,65

6,47

522

,757

,416

575,66

5,86

278

3,14

7,00

514

9,46

6,27

114

4,18

3,25

577

,820

,962

5,67

1,64

221

3,98

3,99

06,97

3,81

0,51

0

LIABILITIES

Amountspayableon

purchase

ofinvestments

—259,594

1,512,188

——

2,090,000

——

36,123

19,406,435

Amountspayableon

redemptions

——

——

4,702

—10,000

—43,927

423,218

Unrealised

depreciatio

non


con-

tracts(note8)

——

——

——

——

—114,859

Managem

entfees

payable(note3)

3,696

5,227

23,819

—53,569

22,957

29,210

5,171

44,644

958,039

Taxandexpenses

payable

3,921

8,426

68,662

79,924

38,446

23,430

29,720

3,964

45,676

1,262,510

Other

liabilities

——

——

——

——

—280

Totalliabilities

7,61

727

3,24

71,60

4,66

979

,924

96,717

2,13

6,38

768

,930

9,13

517

0,37

022

,165

,341

TOTA

LNETASSETVA

LUE

4,64

8,85

822

,484

,169

574,06

1,19

378

3,06

7,08

114

9,36

9,55

414

2,04

6,86

877

,752

,032

5,66

2,50

721

3,81

3,62

06,95

1,64

5,16

9

Num

berof

ClassAshares

outstand

ing

556,858.577

199,770.139

2,145,098.535

—259,653.262

314,932.993

547,921.043

—649,061.562

Num

berof

ClassADshares

outstand

ing

——

——

——

——

—

Num

berof

ClassAJshares

outstand

ing

——

——

——

——

—

Num

berof

ClassBshares

outstand

ing

——

——

9,801,059.050

—4,431,924.588

——

Num

berof

ClassC

shares

outstand

ing

——

40,942.453

—651,131.519

8,397,931.852

—8,597.381

12,738,082.615

Num

berof

ClassD

shares

outstand

ing

250,000.000

17,450.789

53,975,348.932

83,062,301.164

2,232,088.240

5,402,128.162

1,950,791.803

—8,592,360.783

Num

berof

ClassD

Dshares

outstand

ing

——

903,000.888

——

——

——

Num

berof

ClassD

DJshares

outstand

ing

——

——

——

——

—

Num

berof

ClassD

Jshares

outstand

ing

——

——

——

——

—

Num

berof

ClassEshares

outstand

ing

——

243,745.779

——

——

——

Num

berof

ClassFshares

outstand

ing

——

457.350

——

250.000

——

1,099.096

Num

berof

ClassF D

shares

outstand

ing

——

——

——

——

—

Num

berof

ClassJshares

outstand

ing

—3,453,375.331

——

——

—1,704,934.667

—

Net


USD

5.117

USD

6.004

USD

9.879

—USD

9.838

USD

7.950

USD

9.412

—USD

9.110

Net


——

——

——

——

—

Net


——

——

——

——

—

Net


——

——

USD

11.785

—USD

12.027

——

Net

assetvalueperClassC

share

——

USD

9.909

—USD

12.047

USD

11.191

—USD

3.514

USD

9.670

Net

assetvalueperClassD

share

USD

7.198

USD

8.305

USD

10.018

USD

9.427

USD

10.513

USD

8.434

USD

9.890

—USD

9.860

Net

assetvalueperClassD

Dshare

——

USD

10.288

——

——

——

Net

assetvalueperClassD

DJshare

——

——

——

——

—

Net

assetvalueperClassD

Jshare

——

——

——

——

—

Net


——

USD

10.002

——

——

——

Net


——

SGD

9.826

——

SGD

6.797

——

SGD

6.417

Net


share

——

——

——

——

—

Net


—USD

6.121

——

——

—USD

3.304

—

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFNET

ASSET

SASAT

DEC

EMBER

31,2

008(continued)

63

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008

64

ASIA

ASIAN

ASIAN

ASIAN

ASIAN

ASIAN

PACIFIC

ASIAN

ASIAN

ASIAN

EQUITY

INFR

AST

RUCTURE

LOCAL

PROPE

RTY

STRUCTURED

EQUITY

BOND

DYNAMIC

EQUITY

INCOME

EQUITY

BOND

SECURITIES

PRODUCTS

USD

USD

USD

USD

USD

USD

USD

USD

USD

NETASSETSAT

THEBEGIN

NIN

GOFTHEYE

AR*

927,063,174

761,451,423

9,538,253

848,593,929

3,535,964

131,813,959

414,243,620

10,293,827

252,894,604

INCOME

Dividends,net

28,333,639

—215,465

17,707,804

168,186

3,276,459

—674,542

—

Intereston

bond

s,net

2,820

49,663,093

—2,916

——

19,617,929

—1,314,681

Bankinterest,net

181,976

164,359

1,109

192,224

1,076

5,590

44,481

3,924

22,009

Securitieslend

ing(note10)

——

—301,340

——

——

—

Totalincome

28,518

,435

49,827

,452

216,57

418

,204

,284

169,26

23,28

2,04

919

,662

,410

678,46

61,33

6,69

0

EXPENSE

S

Managem

entfees

(note3)

591,234

321,888

—5,057,336

131,505,039

10,331

175

—

Depositary

bank

commission

(note4)

342,790

102,036

4,407

344,667

2,414

31,279

132,317

4,586

4,830

Transactionfees

(note4)

32,654

8,249

16,102

33,883

7,076

5,174

25,385

9,799

1,223

Dom

iciliation,

administrationandtransfer

agentfees

(note4)

173,209

175,483

10,227

168,621

7,736

38,707

96,345

11,911

8,856

Aud

itfees,printin

gandpu

blicationexpenses

(note6)

23,465

20,838

197

18,480

792,874

10,497

289

1,467

Subscriptio

ntax(note5)

99,452

90,142

720

84,626

282

47,926

33,441

2,284

783

Com

pliancefee(note6)

2,977

2,977

2,977

2,977

2,977

3,002

2,977

2,977

309

Other

charges(note6)

61,962

77,032

2,837

73,577

3,274

13,405

33,745

2,281

—

Totalexpenses

1,32

7,74

379

8,64

537

,467

5,78

4,16

723

,851

1,64

7,40

634

5,03

834

,302

17,468

NETIN

COME/(D

EFICIT)FR

OM

INVEST

MENTS

27,190,692

49,028,807

179,107

12,420,117

145,411

1,634,643

19,317,372

644,164

1,319,222

Net

realised

profit/(lo

ss)on:

Saleof

investments

(167,843,524)

(20,468,615)

10,063

(23,937,774)

(101,347)

(16,794,969)

(6,909,608)

(3,479,360)

(6,878,136)

Futurescontracts

——

——

——

——

—

Forwardforeignexchange

contracts

67,733

(144,489)

—(166,243)

12(3,909)

(4,028,019)

218

(326,806)

Foreignexchange

(1,105,871)

(213,834)

(22,326)

(1,409,230)

(11,231)

(540,426)

(1,447,328)

(27,008)

421,927

NETREALISED

PROFIT/(LOSS)

(141

,690

,970

)28

,201

,869

166,84

4(13,09

3,13

0)32

,845

(15,70

4,66

1)6,93

2,41

7(2,861

,986

)(5,463

,793

)

Changein

netun

realised

appreciatio

n/(depreciation)

on:

Investments

(500,981,474)

(125,296,324)

(5,174,491)

(477,613,099)

(1,542,153)

(44,148,774)

(37,564,359)

(4,845,383)

5,479,541

Futurescontracts

——

——

——

——

—


contracts

—(499,916)

——

——

20,764

—(7,719)

Foreignexchange

37,587

(10,111)

(1,003)

(69,038)

331

(57,951)

82,141

263

(11,509)

NETIN

CREASE

/(D

ECREASE

)IN

NETASSETS

ASARESU

LTOFOPE

RAT

IONS

(642,634,857)

(97,604,482)

(5,008,650)

(490,775,267)

(1,508,977)

(59,911,386)

(30,529,037)

(7,707,106)

(3,480)

MOVEMENTSIN

CAPITAL

Issueof

shares

638,323,483

154,221,985

—293,946,138

—40,487,683

9,543,184

5,532,350

—

Redem

ptionof

shares

(125,000,000)

(93,295,565)

—(153,915,238)

—(39,813,747)

(49,954,098)

(1,329,272)

(252,891,124)

DIVID

ENDSAND

DISTRIBUTIO

NS

Dividends

andDistribu

tions

declared

during

theyear

(729,036)

(2,108,937)

——

——

(2,148,154)

(2,508)

—

Changein

totalnetassetsfortheyear

512,594,447

58,817,483

—140,030,900

—673,936

(42,559,068)

4,200,570

(252,891,124)

NETASSETSAT

THEEND

OFTHEYE

AR

797,02

2,76

472

2,66

4,42

44,52

9,60

349

7,84

9,56

22,02

6,98

772

,576

,509

341,15

5,51

56,78

7,29

1—

*The

openingbalancewascombinedusingtheforeignexchange

rateasatDecem

ber31,2

008.

The

samenetassetswhencombinedusingtheforeignexchange

rateruling

asatDecem

ber31,2

007reflected

afigureof

USD

9,594,742,888.

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008

65

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

66

EUROPE

AN

GREAT

ER

CHIN

ADRAGON

INVEST

MENT

GLO

BALMARKET

GLO

BAL

CHIN

AHONG

KONG

INDIA

INDONESIA

EQUITY

PEACOCK

GRADEBOND

NAV

IGAT

OR

TECHNOLO

GY

EQUITY

EQUITY

EQUITY

EQUITY

USD

USD

EUR

USD

USD

USD

USD

USD

USD

NETASSETSAT

THEBEGIN

NIN

GOFTHEYE

AR*

275,088,219

255,482,836

192,723,152

—84,208,569

68,995,916

1,019,562,132

96,615,908

39,832,126

INCOME

Dividends,net

5,583,661

3,414,312

—227,455

881,367

1,473,489

23,772,471

513,219

751,675

Intereston

bond

s,net

——

11,037,750

183,045

——

8,094

—3,772

Bankinterest,net

38,241

89,825

32,920

12,269

31,188

5,897

51,068

19,743

12,433

Securitieslend

ing(note10)

—59,861

——

—11,852

——

—

Totalincome

5,62

1,90

23,56

3,99

811

,070

,670

422,76

991

2,55

51,49

1,23

823

,831

,633

532,96

276

7,88

0

EXPENSE

S

Managem

entfees

(note3)

114,539

3,073,650

35,044

8,447

632,866

531,252

2570,905

70,065

Depositary

bank

commission

(note4)

92,452

142,967

25,344

5,761

7,887

23,099

260,549

68,207

27,133

Transactionfees

(note4)

17,604

57,507

2,649

2,899

9,767

18,280

10,033

80,775

89,535

Dom

iciliation,


agentfees

(note4)

50,193

62,107

69,018

8,954

44,330

27,009

145,801

28,770

12,472

Aud

itfees,printin

gandpu

blicationexpenses

(note6)

6,186

5,308

6,515

267

1,696

1,318

19,849

2,022

772

Subscriptio

ntax(note5)

25,343

96,256

23,071

676

6,376

8,099

83,800

7,886

2,998

Com

pliancefee(note6)

2,977

2,977

1,908

2,306

2,977

2,977

2,977

1,489

2,977

Other

charges(note6)

16,440

40,556

20,927

13,342

7,612

6,096

67,477

53,091

5,079

Totalexpenses

325,73

43,48

1,32

818

4,47

642

,652

713,51

161

8,13

059

0,51

131

3,14

521

1,03

1

NETIN

COME/(D

EFICIT)FR

OM

INVEST

MENTS

5,296,168

82,670

10,886,194

380,117

199,044

873,108

23,241,122

219,817

556,849

Net

realised

profit/(lo

ss)on:

Saleof

investments

(69,455,448)

(37,801,995)

(1,556,952)

(1,294,231)

(23,648,936)

(2,040,678)

(132,490,331)

(30,212,626)

(1,572,293)

Futurescontracts

——

—(1,497,504)

——

——

—


contracts

(280)

736

—323,622

(111,128)

584

(2,951)

(11,382)

(13,612)

Foreignexchange

19,007

(1,216,668)

—(393,102)

268,117

(46,686)

220,557

(685,893)

(21,871)

NETREALISED

PROFIT/(LOSS)

(64,14

0,55

3)(38,93

5,25

7)9,32

9,24

2(2,481

,098

)(23,29

2,90

3)(1,213

,672

)(109

,031

,603

)(30,69

0,08

4)(1,050

,927

)

Changein

netun

realised

appreciatio

n/(depreciation)

on:

Investments

(101,778,141)

(127,988,311)

(20,331,405)

(363,555)

(12,980,879)

(30,482,538)

(418,403,351)

(49,059,152)

(19,753,430)

Futurescontracts

——

—107,102

——

——

—


contracts

——

——

——

——

—

Foreignexchange

(250)

1,690

(14,148)

(9,138)

126,106

(831)

204

11,935

27,446

NETIN

CREASE

/(D

ECREASE

)IN

NETASSETS

ASARESU

LTOFOPE

RAT

IONS

(165,918,944)

(166,921,878)

(11,016,311)

(2,746,689)

(36,147,676)

(31,697,041)

(527,434,750)

(79,737,301)

(20,776,911)

MOVEMENTSIN

CAPITAL

Issueof

shares

172,328,576

75,302,173

58,741,814

22,313,296

6,138,710

12,963,522

139,648,897

40,944,858

8,655,580

Redem

ptionof

shares

(113,531,156)

(32,774,461)

(37,052,398)

(170,344)

(14,649,068)

(18,878,772)

(176,545,097)

(6,015,841)

(9,629,903)

DIVID

ENDSAND

DISTRIBUTIO

NS

Dividends

andDistribu

tions

declared

during

theyear

——

—(101,443)

——

——

—

Changein


58,797,420

42,527,712

21,689,416

22,041,509

(8,510,358)

(5,915,250)

(36,896,200)

34,929,017

(974,323)

NETASSETSAT

THEEND

OFTHEYE

AR

167,96

6,69

513

1,08

8,67

020

3,39

6,25

719

,294

,820

39,550

,535

31,383

,625

455,23

1,18

251

,807

,624

18,080

,892

*The


rateasatDecem

ber31,2

008.

The


rateruling

asatDecem

ber31,2

007reflected

afigureof

USD

9,594,742,888.

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

67

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

68

NORTH

JAPA

NJAPA

NJAPA

NSM

ALL

ER

KOREA

LATIN

AMERIC

AN

MALA

YSIA

NORTH

AMERIC

AN

PAN

DYNAMIC

EQUITY

COMPA

NIES

EQUITY

EQUITY

EQUITY

AMERIC

AVALU

EEUROPE

AN

USD

USD

USD

USD

USD

USD

USD

USD

USD

NETASSETSAT

THEBEGIN

NIN

GOFTHEYE

AR*

4,485,442

628,666,628

—3,660,420

—45,233,074

841,463,690

525,964,438

164,439,666

INCOME

Dividends,net

79,801

10,713,420

131,535

62,076

1,879,181

1,011,253

13,744,652

11,461,757

3,112,597

Intereston

bond

s,net

——

——

——

——

—

Bankinterest,net

6120,950

791,761

69,102

1,800

156,230

5,840

173,370

Securitieslend

ing(note10)

—28,587

——

——

544,932

——

Totalincome

79,862

10,762

,957

131,61

463

,837

1,94

8,28

31,01

3,05

314

,445

,814

11,467

,597

3,28

5,96

7

EXPENSE

S

Managem

entfees

(note3)

—765,171

1,131

3410,137

78,727

102,527

286

717,741

Depositary

bank

commission

(note4)

1,242

78,925

1,942

1,947

53,407

17,125

39,476

38,135

29,597

Transactionfees

(note4)

2,676

64,190

5,184

4,016

370

16,145

26,496

14,273

32,147

Dom

iciliation,


agentfees

(note4)

7,325

120,739

7,830

8,463

22,945

16,412

153,315

111,853

60,274

Aud

itfees,printin

gandpu

blicationexpenses

(note6)

106

14,702

221

752,788

860

18,984

14,327

3,601

Subscriptio

ntax(note5)

375

48,625

3284

73,109

67,549

54,610

19,954

Com

pliancefee(note6)

2,977

2,977

2,306

2,977

2,000

2,977

2,977

2,977

2,977

Other

charges(note6)

684

55,943

644

1,268

3,020

3,324

75,574

33,743

15,031

Totalexpenses

15,385

1,15

1,27

219

,261

19,064

94,674

138,67

948

6,89

827

0,20

488

1,32

2

NETIN

COME/(D

EFICIT)FR

OM

INVEST

MENTS

64,477

9,611,685

112,353

44,773

1,853,609

874,374

13,958,916

11,197,393

2,404,645

Net

realised

profit/(lo

ss)on:

Saleof

investments

(338,633)

(33,123,982)

102,471

(254,163)

(4,526,854)

(5,202,474)

(157,594,317)

(273,573,445)

(39,054,489)

Futurescontracts

——

——

——

——

—


contracts

(9)

(38,273)

——

(10,085)

6,189

—46

19,114

Foreignexchange

4,462

963,483

(158,525)

(61,966)

(3,222,531)

(74,814)

(8)

302

(543,407)

NETREALISED

PROFIT/(LOSS)

(269

,703

)(22,58

7,08

7)56

,299

(271

,356

)(5,905

,861

)(4,396

,725

)(143

,635

,409

)(262

,375

,704

)(37,17

4,13

7)

Changein

netun

realised

appreciatio

n/(depreciation)

on:

Investments

(765,531)

(152,940,749)

(2,457,172)

(1,479,553)

(114,256,101)

(12,565,936)

(196,934,473)

(120,097,786)

(38,307,271)

Futurescontracts

——

——

——

——

—


contracts

——

——

——

——

—

Foreignexchange

(73)

17,927

3,961

8,213

16,328

750

—(895)

(9,274)

NETIN

CREASE

/(D

ECREASE

)IN

NETASSETS

ASARESU

LTOFOPE

RAT

IONS

(1,035,307)

(175,509,909)

(2,396,912)

(1,742,696)

(120,145,634)

(16,961,911)

(340,569,882)

(382,474,385)

(75,490,68

2)

MOVEMENTSIN

CAPITAL

Issueof

shares

—91,642,865

11,824,690

2,228

200,027,000

243,727

290,910,476

316,333,010

31,937,993

Redem

ptionof

shares

—(111,236,602)

—(1,697)

—(12,710,311)

(361,026,520)

(184,655,760)

(43,659,682)

DIVID

ENDSAND

DISTRIBUTIO

NS

Dividends

andDistribu

tions

declared

during

theyear

—(74,497)

——

——

——

—

Changein


—(19,668,234)

11,824,690

531

200,027,000

(12,466,584)

(70,116,044)

131,677,250

(11,721,689)

NETASSETSAT

THEEND

OFTHEYE

AR

3,45

0,13

543

3,48

8,48

59,42

7,77

81,91

8,25

579

,881

,366

15,804

,579

430,77

7,76

427

5,16

7,30

377

,227

,295

*The


rateasatDecem

ber31,2

008.

The


rateruling

asatDecem

ber31,2

007reflected

afigureof

USD

9,594,742,888.

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

69

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

70

USHIG

HPH

ILIPPINES

TAIW

AN

THAILAND

US

USCORPO

RAT

EIN

VEST

MENT

USHIG

HUSIN

VEST

MENT

VIETNAM

WORLD

VALU

EEQUITY

EQUITY

EQUITY

BOND

BOND

GRADEBOND

YIELD

BOND

GRADEBOND

EQUITY

EQUITY

COMBIN

ED

USD

USD

USD

USD

USD

USD

USD

USD

USD

USD

USD

NETASSETSAT

THEBEGIN

NIN

GOFTHEYE

AR*

15,866,037

5,214,373

47,045,985

554,515,766

495,365,737

208,505,445

129,013,937

106,802,821

12,636,192

322,671,213

9,582,447,150

INCOME

Dividends,net

278,017

197,103

1,358,025

165,779

27,682

16,199

83,881

14,124

340,389

7,850,141

139,521,356

Intereston

bond

s,net

——

—31,212,056

42,443,012

10,065,526

13,993,607

8,255,654

—92,215

192,418,336

Bankinterest,net

2,986

1,607

13,629

510,841

314,441

140,106

67,121

56,840

8,865

68,081

2,537,529

Securitieslend

ing(note10)

——

——

——

——

——

946,572

Totalincome

281,00

319

8,71

01,37

1,65

431

,888

,676

42,785

,135

10,221

,831

14,144

,609

8,32

6,61

834

9,25

48,01

0,43

733

5,42

3,79

3

EXPENSE

S

Managem

entfees

(note3)

29,078

34,167

(42,496)

268,959

—776,048

311,055

610,373

96,056

735,231

16,531,392

Depositary

bank

commission

(note4)

8,902

5,097

20,384

41,813

52,000

9,770

9,010

6,810

21,869

34,132

2,104,691

Transactionfees

(note4)

21,180

14,236

26,950

13,206

9,702

7,091

4,761

12,510

18,560

44,733

768,105

Dom

iciliation,


agentfees

(note4)

12,248

8,598

13,095

145,966

162,739

66,586

59,958

63,094

11,865

111,960

2,333,291

Aud

itfees,printin

gandpu

blicationexpenses

(note6)

300

141

911

48,531

18,360

5,016

4,181

3,574

258

7,495

269,219

Subscriptio

ntax(note5)

1,188

1,610

4,091

81,015

81,151

13,215

9,523

13,902

899

29,662

1,054,385

Com

pliancefee(note6)

2,977

2,977

2,977

2,995

2,995

2,977

2,977

2,977

2,977

2,977

103,447

Other

charges(note6)

1,848

1,762

3,973

39,655

40,949

23,144

15,998

16,538

3,478

29,101

872,984

Totalexpenses

77,721

68,588

29,885

642,14

036

7,89

690

3,84

741

7,46

372

9,77

815

5,96

299

5,29

124

,037

,514

NETIN

COME/(D

EFICIT)FR

OM

INVEST

MENTS

203,282

130,122

1,341,769

31,246,536

42,417,239

9,317,984

13,727,146

7,596,840

193,292

7,015,146

311,386,279

Net

realised

profit/(lo

ss)on:

Saleof

investments

(3,311,445)

46,855

(2,957,828)

(6,264,509)

(20,474,877)

(11,382,442)

(25,214,285)

(13,795,354)

(2,019,853)

(44,856,398)

(1,190,910,665)

Futurescontracts

——

——

——

——

——

(1,497,504)


contracts

4,984

(19)

8,666

——

——

—(5,097)

—(4,430,398)

Foreignexchange

(31,276)

(13,674)

(43,435)

——

(69)

8810,444

(79,623)

(310,180)

(9,772,595)

NETREALISED

PROFIT/(LOSS)

(3,134

,455

)16

3,28

4(1,650

,828

)24

,982

,027

21,942

,362

(2,064

,527

)(11,48

7,05

1)(6,188

,070

)(1,911

,281

)(38,15

1,43

2)(895

,224

,883

)

Changein

netun

realised

appreciatio

n/(depreciation)

on:

Investments

(6,036,909)

(3,589,316)

(13,757,377)

(25,891,285)

(61,930,246)

(12,625,621)

(37,061,724)

(13,301,239)

(9,010,247)

(105,082,112

)(2,909,247,703)

Futurescontracts

——

——

——

——

——

107,102


contracts

——

——

——

——

——

(486,871)

Foreignexchange

7,572

(1,672)

(1,548)

——

—(87)

54213

(3,162)

146,235

NETIN

CREASE

/(D

ECREASE

)IN

NETASSETS

ASARESU

LTOFOPE

RAT

IONS

(9,163,792)

(3,427,704)

(15,409,753)

(909,258)

(39,987,884)

(14,690,148)

(48,548,862)

(19,489,255)

(10,921,315)

(143

,236,706)

(3,804,706,120)

MOVEMENTSIN

CAPITAL

Issueof

shares

1,215,744

3,158,284

3,437,332

213,318,599

335,189,228

29,375,180

77,660,316

83,705,029

5,126,457

83,023,241

3,481,290,169

Redem

ptionof

shares

(2,066,064)

(296,095)

(12,589,395)

(192,862,468)

(7,500,000)

(73,820,923)

(16,078,523)

(93,266,563)

(1,178,827)

(48,64

4,128)

(2,302,220,009)

DIVID

ENDSAND

DISTRIBUTIO

NS

Dividends

andDistribu

tions

declared

during

theyear

——

—(1,446)

——

——

——

(5,166,021)

Changein


(850,320)

2,862,189

(9,152,063)

20,454,685

327,689,228

(44,445,743)

61,581,793

(9,561,534)

3,947,630

34,379,113

1,173,904,139

NETASSETSAT

THEEND

OFTHEYE

AR

5,85

1,92

54,64

8,85

822

,484

,169

574,06

1,19

378

3,06

7,08

114

9,36

9,55

414

2,04

6,86

877

,752

,032

5,66

2,50

721

3,81

3,62

06,95

1,64

5,16

9

*The


rateasatDecem

ber31,2

008.

The


rateruling

asatDecem

ber31,2

007reflected

afigureof

USD

9,594,742,888.

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

COMBIN

EDST

ATEM

ENTOFOPE

RAT

IONSAND

CHANGES

INNET

ASSET

SFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

71

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008

72

ASIA

ASIAN

ASIAN

ASIAN

ASIAN

ASIAN

PACIFIC

ASIAN

ASIAN

ASIAN

EQUITY

INFR

AST

RUCTURE

LOCAL

PROPE

RTY

STRUCTURED

EQUITY

BOND

DYNAMIC

EQUITY

INCOME

EQUITY

BOND

SECURITIES

PRODUCTS

USD

USD

USD

USD

USD

USD

USD

USD

USD

Class

Ashares

Shares

outstand

ingat

thebeginn

ingof

theyear

—3,68

5,65

4.35

0—

2,04

4,30

2.39

010

0.00

012

,526

,452

.471

400.90

325

1.09

6—

Shares

issued

—1,07

9,59

2.30

4—

480,49

1.00

9—

1,42

9,27

8.34

221

2,87

7.50

5—

—Shares

redeem

ed—

(3,576

,911

.610

)—

(474

,880

.207

)—

(4,169

,802

.856

)(94,57

6.87

8)—

—Shares

outstand

ingat

theendof

theyear

—1,18

8,33

5.04

4—

2,04

9,91

3.19

210

0.00

09,78

5,92

7.95

711

8,70

1.53

025

1.09

6—

Class

ADshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—10

2.28

5—

——

——

——

Shares

issued

—4,81

8.95

8—

——

——

——

Shares

redeem

ed—

(173

.129

)—

——

——

——

Shares

outstand

ingat

theendof

theyear

—4,74

8.11

4—

——

——

——

Class

AJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Bshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—7,11

2,50

2.40

6—

——

——

Shares

issued

——

—1,10

9,59

2.95

4—

——

——

Shares

redeem

ed—

——

(2,516

,468

.502

)—

——

——

Shares

outstand

ingat

theendof

theyear

——

—5,70

5,62

6.85

8—

——

——

Class

Cshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—13

,052

,593

.639

——

——

—Shares

issued

——

—8,27

1,27

8.95

1—

604,61

7.32

5—

——

Shares

redeem

ed—

——

(2,486

,333

.374

)—

(89,15

2.95

0)—

——

Shares

outstand

ingat

theendof

theyear

——

—18

,837

,539

.216

—51

5,46

4.37

5—

——

Class

Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—33

,419

,177

.431

500,00

0.00

05,36

4,42

1.15

725

0,00

0.00

0—

—99

4,50

0.60

023

,595

,016

.874

Shares

issued

26,224

,024

.030

8,54

9,87

9.11

9—

1,96

9,33

8.00

5—

—21

,040

.186

592,38

9.28

7—

Shares

redeem

ed—

(2,567

,856

.983

)—

(1,534

,836

.491

)—

——

(246

,400

.000

)(23,59

5,01

6.87

4)Shares

outstand

ingat

theendof

theyear

26,224

,024

.030

39,401

,199

.567

500,00

0.00

05,79

8,92

2.67

125

0,00

0.00

0—

21,040

.186

1,34

0,48

9.88

7—

Class

DDshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

DDJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

DJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Eshares

Shares

outstand

ingat

thebeginn

ingof

theyear

76,493

,341

.248

29,975

,411

.682

——

——

40,730

,802

.134

——

Shares

issued

49,676

,830

.411

4,28

3,93

0.92

6—

——

—51

1,77

0.72

7—

—Shares

redeem

ed(14,88

0,03

3.78

3)(1,891

,435

.033

)—

——

—(5,251

,541

.340

)—

—Shares

outstand

ingat

theendof

theyear

111,29

0,13

7.87

632

,367

,907

.575

——

——

35,991

,031

.521

——

Class

Fshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—25

0.00

0—

287,40

3.30

1—

—10

,028

.042

——

Shares

issued

——

—19

,777

.132

—40

0.00

05,05

5.10

12,95

6.22

7—

Shares

redeem

ed—

——

(61,19

2.65

5)—

—(100

.000

)(147

.541

)—

Shares

outstand

ingat

theendof

theyear

—25

0.00

0—

245,98

7.77

8—

400.00

014

,983

.143

2,80

8.68

6—

Class

F Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

—25

,836

.671

—Shares

redeem

ed—

——

——

——

(523

.647

)—

Shares

outstand

ingat

theendof

theyear

——

——

——

—25

,313

.024

—

Class

Jshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—69

2,46

6.79

7—

——

——

Shares

issued

——

—20

2,49

6.55

4—

2,22

5,86

3.73

5—

——

Shares

redeem

ed—

——

(45,50

4.18

6)—

(1,097

,030

.383

)—

——

Shares

outstand

ingat

theendof

theyear

——

—84

9,45

9.16

5—

1,12

8,83

3.35

2—

——

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008

73

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

74

EUROPE

AN

GREAT

ER

CHIN

ADRAGON

INVEST

MENT

GLO

BALMARKET

GLO

BAL

CHIN

AHONG

KONG

INDIA

INDONESIA

EQUITY

PEACOCK

GRADEBOND

NAV

IGAT

OR

TECHNOLO

GY

EQUITY

EQUITY

EQUITY

EQUITY

USD

USD

EUR

USD

USD

USD

USD

USD

USD

Class

Ashares

Shares

outstand

ingat

thebeginn

ingof

theyear

3,05

3.86

69,81

2,67

0.36

344

6,92

2.49

5—

243,66

7.03

91,17

7,72

0.57

119

4.97

635

2.43

838

,951

.353

Shares

issued

76,873

.726

3,50

6,58

4.47

225

6,20

0.02

758

,089

.285

176,36

7.35

138

,655

.792

——

26,937

.866

Shares

redeem

ed(16,58

1.68

5)(1,669

,702

.233

)(517

,583

.563

)(3,004

.994

)(240

,143

.566

)(815

,482

.057

)(94.97

6)(98.42

5)(94.64

3)Shares

outstand

ingat

theendof

theyear

63,345

.907

11,649

,552

.602

185,53

8.95

955

,084

.291

179,89

0.82

440

0,89

4.30

610

0.00

025

4.01

365

,794

.576

Class

ADshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

AJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Bshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Cshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

1,26

4,10

1.72

4—

17,519

,709

.746

1,53

1,20

9.37

3—

——

Shares

issued

——

—24

3,31

1.01

71,11

6,19

1.05

157

8,02

6.96

6—

——

Shares

redeem

ed—

—(1,264

,101

.724

)(17,66

6.44

0)(3,228

,853

.652

)(202

,547

.583

)—

——

Shares

outstand

ingat

theendof

theyear

——

—22

5,64

4.57

715

,407

,047

.145

1,90

6,68

8.75

6—

——

Class

Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

7,50

8,23

9.43

695

4,39

7.68

717

,069

,375

.363

——

—57

,797

,966

.902

1,95

8,09

3.44

213

,771

.070

Shares

issued

7,65

6,31

4.20

653

1,57

1.36

75,41

2,48

7.63

365

8,40

9.47

8—

—10

,297

,754

.646

1,65

8,02

2.56

79,53

0.96

1Shares

redeem

ed(5,307

,118

.784

)(290

,000

.000

)(1,921

,081

.194

)—

——

(15,21

0,01

2.66

6)(404

,438

.319

)(9,530

.961

)Shares

outstand

ingat

theendof

theyear

9,85

7,43

4.85

81,19

5,96

9.05

420

,560

,781

.802

658,40

9.47

8—

—52

,885

,708

.882

3,21

1,67

7.69

013

,771

.070

Class

DDshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

DDJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

—1,42

6,50

5.22

8—

——

——

Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

—1,42

6,50

5.22

8—

——

——

Class

DJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Eshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Fshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

250.00

083

0.49

3—

——

Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

250.00

083

0.49

3—

——

Class

F Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Jshares

Shares

outstand

ingat

thebeginn

ingof

theyear

4,91

2,91

5.12

1—

——

——

—2,98

1,52

4.26

33,14

2,42

9.49

7Shares

issued

908,30

0.47

2—

——

——

—1,16

5,75

4.29

21,14

4,08

0.74

1Shares

redeem

ed(1,195

,436

.563

)—

——

——

—(73,46

8.58

8)(869

,877

.768

)Shares

outstand

ingat

theendof

theyear

4,62

5,77

9.03

0—

——

——

—4,07

3,80

9.96

73,41

6,63

2.47

0

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

75

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

76

NORTH

JAPA

NJAPA

NJAPA

NSM

ALL

ER

KOREA

LATIN

AMERIC

AN

MALA

YSIA

NORTH

AMERIC

AN

PAN

DYNAMIC

EQUITY

COMPA

NIES

EQUITY

EQUITY

EQUITY

AMERIC

AVALU

EEUROPE

AN

USD

USD

USD

USD

USD

USD

USD

USD

USD

Class

Ashares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—19

4.49

1—

100.00

068

4,31

9.48

71,00

0.00

01,46

0,84

1.72

5Shares

issued

——

750.00

023

1.84

92,70

0.00

0—

192,48

1.89

361

1.77

082

0,58

6.24

2Shares

redeem

ed—

——

(326

.340

)—

—(253

,882

.899

)—

(1,045

,015

.108

)Shares

outstand

ingat

theendof

theyear

——

750.00

010

0.00

02,70

0.00

010

0.00

062

2,91

8.48

11,61

1.77

01,23

6,41

2.85

9

Class

ADshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

AJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—8,89

6,04

9.53

9—

——

——

——

Shares

issued

—42

6,46

2.80

3—

——

——

——

Shares

redeem

ed—

(5,736

,429

.440

)—

——

——

——

Shares

outstand

ingat

theendof

theyear

—3,58

6,08

2.90

2—

——

——

——

Class

Bshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Cshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

5,27

0,40

8.52

3Shares

issued

——

——

——

——

722,12

8.15

3Shares

redeem

ed—

——

——

——

—(931

,629

.589

)Shares

outstand

ingat

theendof

theyear

——

——

——

——

5,06

0,90

7.08

7

Class

Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

500,00

0.00

036

,710

,551

.574

—25

0,00

0.00

0—

—68

,839

,139

.627

56,617

,437

.646

4,70

6,58

3.84

3Shares

issued

—5,74

5,67

7.04

4—

——

—27

,678

,205

.380

41,583

,582

.551

1,04

8,79

0.91

0Shares

redeem

ed—

(6,630

,698

.638

)—

——

—(35,81

1,70

3.26

1)(40,20

9,13

8.96

6)(2,015

,807

.044

)Shares

outstand

ingat

theendof

theyear

500,00

0.00

035

,825

,529

.980

—25

0,00

0.00

0—

—60

,705

,641

.746

57,991

,881

.231

3,73

9,56

7.70

9

Class

DDshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

DDJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

DJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—6,91

1,39

1.39

9—

——

——

——

Shares

issued

—2,18

3,67

3.97

7—

——

——

——

Shares

redeem

ed—

(1,123

,591

.742

)—

——

——

——

Shares

outstand

ingat

theendof

theyear

—7,97

1,47

3.63

4—

——

——

——

Class

Eshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—13

,390

,336

.049

——

——

——

—Shares

issued

—2,15

8,42

8.46

51,18

1,71

8.97

0—

20,000

,000

.000

——

——

Shares

redeem

ed—

(225

,835

.592

)—

——

——

——

Shares

outstand

ingat

theendof

theyear

—15

,322

,928

.922

1,18

1,71

8.97

0—

20,000

,000

.000

——

——

Class

Fshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

—1,00

0.00

025

0.00

0Shares

issued

——

——

——

—3,17

2.38

0—

Shares

redeem

ed—

——

——

——

(1,000

.000

)—

Shares

outstand

ingat

theendof

theyear

——

——

——

—3,17

2.38

025

0.00

0

Class

F Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

—Shares

issued

——

——

——

——

—Shares

redeem

ed—

——

——

——

——

Shares

outstand

ingat

theendof

theyear

——

——

——

——

—

Class

Jshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

—4,19

3,06

4.57

6—

——

Shares

issued

——

——

—24

,870

.107

——

—Shares

redeem

ed—

——

——

(1,673

,713

.541

)—

——

Shares

outstand

ingat

theendof

theyear

——

——

—2,54

4,22

1.14

2—

——

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

77

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

78

USHIG

HPH

ILIPPINES

TAIW

AN

THAILAND

US

USCORPO

RAT

EIN

VEST

MENT

USHIG

HUSIN

VEST

MENT

VIETNAM

WORLD

VALU

EEQUITY

EQUITY

EQUITY

BOND

BOND

GRADEBOND

YIELD

BOND

GRADEBOND

EQUITY

EQUITY

USD

USD

USD

USD

USD

USD

USD

USD

USD

USD

Class

Ashares

Shares

outstand

ingat

thebeginn

ingof

theyear

12,520

.000

183,78

4.52

819

4,87

5.11

21,68

2,16

6.52

3—

7,05

7.06

127

6,56

2.15

789

4,99

3.80

3—

695,41

4.88

3Shares

issued

34,555

.000

409,26

3.73

820

,802

.313

1,80

3,23

4.69

627

5,34

4.72

235

9,77

8.51

81,19

1,07

0.42

6—

475,78

1.42

5Shares

redeem

ed(11,40

0.00

0)(36,18

9.68

9)(15,90

7.28

6)(1,340

,302

.684

)—

(22,74

8.52

1)(321

,407

.682

)(1,538

,143

.186

)—

(522

,134

.746

)Shares

outstand

ingat

theendof

theyear

35,675

.000

556,85

8.57

719

9,77

0.13

92,14

5,09

8.53

5—

259,65

3.26

231

4,93

2.99

354

7,92

1.04

3—

649,06

1.56

2

Class

ADshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

——

Shares

issued

——

——

——

——

——

Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

——

——

——

——

Class

AJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

——

Shares

issued

——

——

——

——

——

Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

——

——

——

——

Class

Bshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

—13

,601

,560

.168

—5,67

1,02

5.18

6—

—Shares

issued

——

——

—1,52

9,94

6.22

0—

4,39

2,38

7.82

1—

—Shares

redeem

ed—

——

——

(5,330

,447

.338

)—

(5,631

,488

.419

)—

—Shares

outstand

ingat

theendof

theyear

——

——

—9,80

1,05

9.05

0—

4,43

1,92

4.58

8—

—

Class

Cshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—3,22

7,14

3.44

9—

1,14

8,31

6.12

07,64

5,97

1.27

0—

—13

,233

,170

.544

Shares

issued

——

—51

,347

.725

—26

9,12

5.80

81,93

3,28

5.84

4—

114,39

1.53

31,39

9,92

4.08

8Shares

redeem

ed—

——

(3,237

,548

.721

)—

(766

,310

.409

)(1,181

,325

.262

)—

(105

,794

.152

)(1,895

,012

.017

)Shares

outstand

ingat

theendof

theyear

——

—40

,942

.453

—65

1,13

1.51

98,39

7,93

1.85

2—

8,59

7.38

112

,738

,082

.615

Class

Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

—25

0,00

0.00

017

,450

.789

50,482

,188

.810

49,577

,255

.382

1,80

0,80

3.23

41,14

2,46

3.63

51,65

7,07

7.41

3—

5,61

2,55

5.61

6Shares

issued

——

—18

,329

,508

.037

34,337

,379

.706

477,19

0.56

84,32

3,89

9.82

91,01

6,67

3.12

6—

4,07

3,01

9.01

4Shares

redeem

ed—

——

(14,83

6,34

7.91

5)(852

,333

.924

)(45,90

5.56

2)(64,23

5.30

2)(722

,958

.736

)—

(1,093

,213

.847

)Shares

outstand

ingat

theendof

theyear

—25

0,00

0.00

017

,450

.789

53,975

,348

.932

83,062

,301

.164

2,23

2,08

8.24

05,40

2,12

8.16

21,95

0,79

1.80

3—

8,59

2,36

0.78

3

Class

DDshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

——

Shares

issued

——

—90

3,00

0.88

8—

——

——

—Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

—90

3,00

0.88

8—

——

——

—

Class

DDJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

——

Shares

issued

——

——

——

——

——

Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

——

——

——

——

Class

DJshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

——

Shares

issued

——

——

——

——

——

Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

——

——

——

——

Class

Eshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—89

,996

.307

——

——

——

Shares

issued

——

—23

6,29

6.45

2—

——

——

—Shares

redeem

ed—

——

(82,54

6.98

0)—

——

——

—Shares

outstand

ingat

theendof

theyear

——

—24

3,74

5.77

9—

——

——

—

Class

Fshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

—45

7.35

0—

—25

0.00

0—

—1,09

9.09

6Shares

issued

——

——

——

——

——

Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

—45

7.35

0—

—25

0.00

0—

—1,09

9.09

6

Class

F Dshares

Shares

outstand

ingat

thebeginn

ingof

theyear

——

——

——

——

——

Shares

issued

——

——

——

——

——

Shares

redeem

ed—

——

——

——

——

—Shares

outstand

ingat

theendof

theyear

——

——

——

——

——

Class

Jshares

Shares

outstand

ingat

thebeginn

ingof

theyear

1,54

4,29

2.39

4—

4,02

8,78

9.71

7—

——

——

1,26

7,15

8.43

3—

Shares

issued

112,93

5.27

1—

494,27

3.02

1—

——

——

574,98

2.92

2—

Shares

redeem

ed(370

,749

.506

)—

(1,069

,687

.407

)—

——

——

(137

,206

.688

)—

Shares

outstand

ingat

theendof

theyear

1,28

6,47

8.15

9—

3,45

3,37

5.33

1—

——

——

1,70

4,93

4.66

7—

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

EMEN

TOFCHANGES

INSH

ARES

OUTST

ANDIN

GFO

RTHEYE

AREN

DED

DEC

EMBER

31,2

008(continued)

79

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS

80

ASIA

ASIAN

ASIAN

ASIAN

ASIAN

ASIAN

PACIFIC

ASIAN

ASIAN

ASIAN

EQUITY

INFR

AST

RUCTURE

LOCAL

PROPE

RTY

STRUCTURED

EQUITY

BOND

DYNAMIC

EQUITY

INCOME

EQUITY

BOND

SECURITIES

PRODUCTS

USD

USD

USD

USD

USD

USD

USD

USD

USD

TOTALNETASSETSVALU

E–Decem

ber31,2008

797,022,764

722,664,424

4,529,603

497,849,562

2,026,987

72,576,509

341,155,515

6,787,291

—–Decem

ber31,2007

927,063,174

761,451,423

9,538,253

848,593,929

3,535,964

131,813,959

414,243,620

10,293,827

252,894,604

–Decem

ber31,2006

—597,447,103

6,327,988

428,022,538

3,013,041

—386,123,574

—169,506,780

Net

assetvalueperClassAshareas

at–Decem

ber31,2008

—USD

10.321

—USD

8.722

USD

5.892

USD

6.203

USD

9.619

USD

4.860

—–Decem

ber31,2007

—USD

11.990

—USD

19.076

USD

10.427

USD

10.523

USD

10.443

USD

10.228

—–Decem

ber31,2006

—USD

11.636

—USD

14.264

——

——

—

Net

assetvalueperClassADshareas

at–Decem

ber31,2008

—USD

9.884

——

——

——

—–Decem

ber31,2007

—USD

11.997

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassAJshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassBshareas

at–Decem

ber31,2008

——

—USD

4.501

——

——

—–Decem

ber31,2007

——

—USD

9.727

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassC

shareas

at–Decem

ber31,2008

——

—USD

17.993

—USD

6.786

——

—–Decem

ber31,2007

——

—USD

39.153

——

——

—–Decem

ber31,2006

—USD

13.839

—USD

29.117

——

——

—

Net

assetvalueperClassD

shareas

at–Decem

ber31,2008

USD

5.787

USD

10.857

USD

9.059

USD

18.751

USD

8.106

—USD

10.573

USD

4.994

—–Decem

ber31,2007

—USD

12.435

USD

19.077

USD

40.395

USD

14.140

——

USD

10.348

USD

10.718

–Decem

ber31,2006

—USD

11.913

USD

12.656

USD

29.740

USD

12.052

—USD

10.633

—USD

10.465

Net

assetvalueperClassD

Dshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassD

DJshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassD

Jshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassEshareas

at–Decem

ber31,2008

USD

5.798

USD

8.73

——

——

USD

9.438

——

–Decem

ber31,2007

USD

12.120

USD

10.064

——

——

USD

10.168

——

–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassFshareas

at–Decem

ber31,2008

—SG

D8.489

—SG

D7.490

—SG

D6.455

SGD

9.064

SGD

4.823

—–Decem

ber31,2007

—SG

D9.844

—SG

D16.394

——

SGD

9.847

——

–Decem

ber31,2006

—SG

D10.179

—SG

D13.068

——

——

—

Net


shareas

at–Decem

ber31,2008

——

——

——

—SG

D4.685

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassJshareas

at–Decem

ber31,2008

——

—USD

6.274

—USD

7.422

——

—–Decem

ber31,2007

——

—USD

13.560

——

——

—–Decem

ber31,2006

——

——

——

——

—

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS

81

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS(continued)

82

EUROPE

AN

GREAT

ER

CHIN

ADRAGON

INVEST

MENT

GLO

BALMARKET

GLO

BAL

CHIN

AHONG

KONG

INDIA

INDONESIA

EQUITY

PEACOCK

GRADEBOND

NAV

IGAT

OR

TECHNOLO

GY

EQUITY

EQUITY

EQUITY

EQUITY

USD

USD

EUR

USD

USD

USD

USD

USD

USD

TOTALNETASSETSVALU

E–Decem

ber31,2008

167,966,695

131,088,670

203,396,257

19,294,820

39,550,535

31,383,625

455,231,182

51,807,624

18,080,892

–Decem

ber31,2007

275,088,219

255,482,836

192,723,152

—84,208,569

68,995,916

1,019,562,132

96,615,908

39,832,126

–Decem

ber31,2006

4,398,608

23,709,806

127,069,372

—103,158,622

56,245,275

3,776,084

4,142,624

3,841,422

Net


at–Decem

ber31,2008

USD

6.284

USD

9.914

EUR9.195

USD

8.235

USD

6.709

USD

9.982

USD

5.853

USD

4.982

USD

5.059

–Decem

ber31,2007

USD

12.850

USD

23.130

EUR9.777

—USD

12.584

USD

20.479

USD

12.178

USD

14.311

USD

12.352

–Decem

ber31,2006

—USD

13.418

EUR9.893

—USD

11.462

USD

16.202

——

—

Net


at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassC

shareas

at–Decem

ber31,2008

——

—USD

8.498

SGD

3.575

USD

14.359

——

—–Decem

ber31,2007

——

EUR9.943

—SG

D6.657

USD

29.303

——

—–Decem

ber31,2006

——

EUR9.981

—SG

D6.414

USD

23.058

——

—

Net

assetvalueperClassD

shareas

at–Decem

ber31,2008

USD

13.992

USD

13.037

EUR9.809

USD

8.333

——

USD

8.608

USD

9.688

USD

8.946

–Decem

ber31,2007

USD

28.172

USD

29.875

EUR10.298

——

—USD

17.64

USD

27.411

USD

21.497

–Decem

ber31,2006

USD

17.594

USD

17.023

EUR10.286

——

—USD

13.097

USD

16.570

USD

15.366

Net

assetvalueperClassD

Dshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassD

DJshareas

at–Decem

ber31,2008

——

—JPY723

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassD

Jshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

SGD

5.769

SGD

7.867

——

—–Decem

ber31,2007

——

——

SGD

10.823

SGD

16.150

——

—–Decem

ber31,2006

——

——

SGD

10.506

SGD

13.617

——

—

Net


shareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

USD

6.408

——

——

——

USD

5.079

USD

5.159

–Decem

ber31,2007

USD

12.931

——

——

——

USD

14.402

USD

12.428

–Decem

ber31,2006

——

——

——

——

—

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS(continued)

83

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS(continued)

84

NORTH

JAPA

NJAPA

NJAPA

NSM

ALL

ER

KOREA

LATIN

AMERIC

AN

MALA

YSIA

NORTH

AMERIC

AN

PAN

DYNAMIC

EQUITY

COMPA

NIES

EQUITY

EQUITY

EQUITY

AMERIC

AVALU

EEUROPE

AN

USD

USD

USD

USD

USD

USD

USD

USD

USD

TOTALNETASSETSVALU

E–Decem

ber31,2008

3,450,135

433,488,485

9,427,778

1,918,255

79,881,366

15,804,579

430,777,764

275,167,303

77,227,295

–Decem

ber31,2007

4,485,442

628,666,628

—3,660,420

—45,233,074

841,463,690

525,964,438

164,439,666

–Decem

ber31,2006

5,141,200

439,486,781

—2,870,312

——

902,351,257

—62,811,650

Net


at–Decem

ber31,2008

——

USD

7.880

USD

5.610

USD

3.953

USD

6.102

USD

6.792

USD

4.648

USD

8.563

–Decem

ber31,2007

——

—USD

10.864

—USD

10.726

USD

11.884

USD

9.242

USD

15.823

–Decem

ber31,2006

—USD

10.664

——

——

USD

12.247

—USD

14.214

Net


at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

—JPY622

——

——

——

—–Decem

ber31,2007

—JPY1,080.000

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassC

shareas

at–Decem

ber31,2008

——

——

——

——

SGD

8.521

–Decem

ber31,2007

——

——

——

——

SGD

15.669

–Decem

ber31,2006

——

——

——

——

SGD

14.927

Net

assetvalueperClassD

shareas

at–Decem

ber31,2008

USD

6.900

USD

6.781

—USD

7.671

——

USD

7.026

USD

4.745

USD

9.793

–Decem

ber31,2007

USD

8.971

USD

9.352

—USD

14.633

——

USD

12.105

USD

9.290

USD

17.819

–Decem

ber31,2006

USD

10.282

USD

10.175

—USD

11.481

——

USD

12.284

—USD

15.762

Net

assetvalueperClassD

Dshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassD

DJshareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net

assetvalueperClassD

Jshareas

at–Decem

ber31,2008

—JPY611

——

——

——

—–Decem

ber31,2007

—JPY1,047

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

—USD

7.299

USD

7.973

—USD

3.994

——

——

–Decem

ber31,2007

—USD

10.073

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

——

—SG

D5.203

SGD

7.363

–Decem

ber31,2007

——

——

——

—SG

D10.336

SGD

13.619

–Decem

ber31,2006

——

——

——

——

SGD

13.033

Net


shareas

at–Decem

ber31,2008

——

——

——

——

—–Decem

ber31,2007

——

——

——

——

—–Decem

ber31,2006

——

——

——

——

—

Net


at–Decem

ber31,2008

——

——

—USD

6.212

——

—–Decem

ber31,2007

——

——

—USD

10.787

——

—–Decem

ber31,2006

——

——

——

——

—

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS(continued)

85

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS(continued)

86

USHIG

HPH

ILIPPINES

TAIW

AN

THAILAND

US

USCORPO

RAT

EIN

VEST

MENT

USHIG

HUSIN

VEST

MENT

VIETNAM

WORLD

VALU

EEQUITY

EQUITY

EQUITY

BOND

BOND

GRADEBOND

YIELD

BOND

GRADEBOND

EQUITY

EQUITY

USD

USD

USD

USD

USD

USD

USD

USD

USD

USD

TOTALNETASSETSVALU

E–Decem

ber31,2008

5,851,925

4,648,858

22,484,169

574,061,193

783,067,081

149,369,554

142,046,868

77,752,032

5,662,507

213,813,620

–Decem

ber31,2007

15,866,037

5,214,373

47,045,985

554,515,766

495,365,737

208,505,445

129,013,937

106,802,821

12,636,192

322,671,213

–Decem

ber31,2006

—2,924,186

2,738,094

——

413,629,610

129,676,666

191,459,613

—322,826,097

Net


at–Decem

ber31,2008

USD

4.351

USD

5.117

USD

6.004

USD

9.879

—USD

9.838

USD

7.950

USD

9.412

—USD

9.110

–Decem

ber31,2007

USD

10.144

USD

9.837

USD

11.048

USD

9.984

—USD

10.783

USD

10.590

USD

10.894

—USD

15.692

–Decem

ber31,2006

——

——

—USD

10.353

USD

10.658

USD

10.553

—USD

15.244

Net


at–Decem

ber31,2008

——

——

——

——

——

–Decem

ber31,2007

——

——

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net


at–Decem

ber31,2008

——

——

——

——

——

–Decem

ber31,2007

——

——

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net


at–Decem

ber31,2008

——

——

—USD

11.785

—USD

12.027

——

–Decem

ber31,2007

——

——

—USD

12.733

—USD

13.812

——

–Decem

ber31,2006

——

——

—USD

12.201

—USD

13.272

——

Net

assetvalueperClassC

shareas

at–Decem

ber31,2008

——

—USD

9.909

—USD

12.047

USD

11.191

—USD

3.514

USD

9.670

–Decem

ber31,2007

——

—USD

9.991

—USD

12.962

USD

14.825

——

USD

16.460

–Decem

ber31,2006

——

——

—USD

12.379

USD

14.763

USD

13.463

—USD

15.799

Net

assetvalueperClassD

shareas

at–Decem

ber31,2008

—USD

7.198

USD

8.305

USD

10.018

USD

9.427

USD

10.513

USD

8.434

USD

9.890

—USD

9.860

–Decem

ber31,2007

—USD

13.626

USD

15.045

USD

9.995

USD

9.992

USD

11.302

USD

11.145

USD

11.301

—USD

16.727

–Decem

ber31,2006

—USD

11.697

USD

10.952

——

USD

10.775

USD

11.071

USD

10.806

—USD

15.999

Net

assetvalueperClassD

Dshareas

at–Decem

ber31,2008

——

—USD

10.288

——

——

——

–Decem

ber31,2007

——

——

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net

assetvalueperClassD

DJshareas

at–Decem

ber31,2008

——

——

——

——

——

–Decem

ber31,2007

——

——

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net

assetvalueperClassD

Jshareas

at–Decem

ber31,2008

——

——

——

——

——

–Decem

ber31,2007

——

——

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net


at–Decem

ber31,2008

——

—USD

10.002

——

——

——

–Decem

ber31,2007

——

—USD

9.995

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net


at–Decem

ber31,2008

——

—SG

D9.826

——

SGD

6.797

——

SGD

6.417

–Decem

ber31,2007

——

—SG

D9.923

——

SGD

9.104

——

SGD

11.062

–Decem

ber31,2006

——

——

—SG

D9.388

SGD

9.763

SGD

9.369

—SG

D11.453

Net


shareas

at–Decem

ber31,2008

——

——

——

——

——

–Decem

ber31,2007

——

——

——

——

——

–Decem

ber31,2006

——

——

——

——

——

Net


at–Decem

ber31,2008

USD

4.428

—USD

6.121

——

——

—USD

3.304

—–Decem

ber31,2007

USD

10.192

—USD

11.078

——

——

—USD

9.972

—–Decem

ber31,2006

——

——

——

——

——

The


anintegralpartof


ents.

INTER

NAT

IONALOPP

ORTUNITIESFU

NDS

STAT

ISTICS(continued)

87

Quantity/ Aquisition % netDescription Nominal Currency cost Evaluation assets

TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTINGOR DEALT IN ON ANOTHER REGULATED MARKET

SHARES & RIGHTS

AUSTRALIA

AMP Ltd 2,608,822 AUD 19,674,064 9,794,761 1.23

Aristocrat Leisure Ltd 3,475,770 AUD 27,560,845 9,341,849 1.17

Australia & New Zealand Banking Group Ltd 2,402,856 AUD 46,935,329 25,449,856 3.19

AXA Asia Pacific Holdings Ltd 5,170,234 AUD 14,368,624 17,692,420 2.22

BHP Billiton Ltd 1,684,286 AUD 62,154,531 35,514,899 4.46

Foster's Group Ltd 4,921,803 AUD 25,487,580 18,751,543 2.35

Macquarie Group Ltd 619,152 AUD 33,698,446 12,356,362 1.55

Metcash Ltd 4,453,661 AUD 16,775,211 13,512,676 1.69

Origin Energy Ltd 2,562,632 AUD 23,425,090 28,615,503 3.59

Rio Tinto Ltd 459,045 AUD 34,411,279 12,083,395 1.52

Suncorp-Metway Ltd 2,352,294 AUD 20,150,224 13,687,401 1.72

324,641,223 196,800,665 24.69

CAYMAN ISLANDS

China Resources Land Ltd 8,296,000 HKD 8,712,997 10,169,234 1.28

CHINA

Bank of China Ltd "H" 76,539,000 HKD 34,413,279 20,937,003 2.63

BYD Electronic International Co., Ltd 4,867,500 HKD 6,014,524 1,714,607 0.21

China Coal Energy Co. "H" 11,974,000 HKD 24,218,614 9,532,796 1.20

China Merchants Bank Co., Ltd "H" 4,298,500 HKD 7,215,161 7,964,660 1.00

China Shipping Development Co., Ltd "H" 8,604,000 HKD 17,439,711 8,548,443 1.07

Focus Media Holding Ltd – ADR 580,200 USD 14,727,183 5,105,760 0.64

Ping An Insurance Group Company of China Ltd "H" 1,808,000 HKD 8,182,554 8,748,338 1.10

112,211,026 62,551,607 7.85

HONG KONG

AAC Acoustic Technologies Holdings, Inc. 15,229,000 HKD 18,109,640 6,838,274 0.86

China Mobile Ltd 4,273,686 HKD 51,300,551 42,902,054 5.38

China Unicom Ltd 8,280,384 HKD 16,510,016 9,936,405 1.24

CNOOC Ltd 23,322,000 HKD 29,825,968 21,787,140 2.73

Hang Seng Bank Ltd 818,400 HKD 10,922,634 10,739,460 1.35

Henderson Land Development Co., Ltd 4,643,000 HKD 18,850,083 17,193,981 2.16

Huabao International Holdings Ltd 13,235,000 HKD 12,723,269 8,675,281 1.09

Kowloon Development Co., Ltd 2,072,700 HKD 4,568,115 780,935 0.10

Swire Pacific Ltd "A" 2,885,500 HKD 20,043,262 19,863,299 2.49

Wharf Holdings Ltd 7,003,125 HKD 34,599,322 19,202,010 2.41

217,452,860 157,918,839 19.81

INDIA

Aban Offshore Ltd 216,486 INR 11,197,831 3,000,730 0.37

Bharti Airtel Ltd 1,476,818 INR 19,077,785 21,811,609 2.74

ICICI Bank Ltd 1,789,933 INR 25,517,605 16,556,282 2.08


— ASIA PACIFIC EQUITY —

STATEMENT OF INVESTMENTS AS AT DECEMBER 31, 2008(expressed in USD)

88


IVRCL Infrastructures & Projects Ltd 1,144,624 INR 11,807,894 3,396,423 0.42

Reliance Capital Ltd 570,404 INR 18,958,068 6,378,706 0.80

Tata Consultancy Services Ltd 1,169,634 INR 20,354,879 11,538,201 1.45

Tata Power Co., Ltd 628,626 INR 19,537,879 9,721,028 1.22

126,451,941 72,402,979 9.08

INDONESIA

Bakrie and Brothers Tbk PT 180,012,250 IDR 9,642,553 823,854 0.11

Bank Mandiri Persero Tbk PT 44,807,500 IDR 14,080,885 8,305,271 1.04

PT Astra International Tbk 4,956,884 IDR 11,884,531 4,786,734 0.60

35,607,969 13,915,859 1.75

MALAYSIA

Bumiputra-Commerce Holdings BHD 2,192,300 MYR 6,212,866 3,701,807 0.47

PHILIPPINES

Metropolitan Bank & Trust 27,917,900 PHP 23,165,781 13,503,920 1.69

SINGAPORE

ARA Asset Management Ltd 7,885,000 SGD 5,438,414 2,003,428 0.25

DBS Group Holdings Ltd 2,833,000 SGD 29,022,312 16,604,957 2.09

DBS Group Holdings Ltd (Rights) 1,416,500 SGD 4,646,966 2,958,128 0.37

39,107,692 21,566,513 2.71

SOUTH KOREA

KB Financial Group, Inc. 448,330 KRW 10,642,148 11,995,332 1.50

Korea Electric Power Corp. 364,980 KRW 10,833,308 8,577,196 1.08

LG Dacom Corp. 624,410 KRW 14,998,622 9,865,237 1.23

S1 Corp. (Korea) 279,960 KRW 15,414,145 12,002,572 1.51

Samsung Electronics Co., Ltd 89,281 KRW 44,012,505 31,968,346 4.01

Samsung Fire & Marine Insurance Co., Ltd 92,981 KRW 19,240,096 13,915,222 1.75

Shinsegae Co., Ltd 42,939 KRW 25,957,906 16,431,740 2.06

SK Energy Co., Ltd 146,389 KRW 19,923,473 8,751,611 1.10

161,022,203 113,507,256 14.24

TAIWAN

Advanced Semiconductor Engineering, Inc. 23,815,596 TWD 22,952,795 8,569,764 1.08

AU Optronics Corp. 6,057,840 TWD 8,825,821 4,562,892 0.57

Chinatrust Financial Holding Co., Ltd 22,623,765 TWD 15,527,275 9,589,702 1.20

Delta Electronics, Inc. 6,419,000 TWD 15,539,751 12,429,868 1.56

Far Eastern Textile Co., Ltd 27,651,823 TWD 27,698,549 17,707,958 2.22

HON HAI Precision Industry Co., Ltd 6,256,393 TWD 30,788,316 12,248,544 1.54

Largan Precision Co., Ltd 764,000 TWD 5,122,684 4,741,144 0.59

Quanta Computer, Inc. 5,964,000 TWD 6,384,303 6,292,731 0.79

Taiwan Cement Corp. 20,062,020 TWD 28,383,071 16,487,653 2.07

161,222,565 92,630,256 11.62



STATEMENT OF INVESTMENTS AS AT DECEMBER 31, 2008 (continued)(expressed in USD)

89


THAILAND

Bangkok Bank PCL (Foreign Market) 5,663,141 THB 18,121,739 11,324,644 1.42

PTT PCL (Foreign Market) 2,071,400 THB 18,923,957 10,430,002 1.31

37,045,696 21,754,646 2.73

TOTAL INVESTMENTS 1,252,854,819 780,423,581 97.92

OTHER NET ASSETS 16,599,183 2.08

TOTAL NET ASSETS 797,022,764 100.00




90



BONDS

BERMUDA

Nine Dragons Paper Holdings Ltd 7.875% 29/4/2013 (Reg) 4,500,000 USD 4,480,301 1,125,000 0.16

BRITISH VIRGIN ISLANDS

Citic Resources Finance Ltd 6.75% 15/5/2014 (Reg) 8,000,000 USD 7,951,451 5,360,000 0.74

CMHI Finance BVI Co., Ltd 6.125% 18/6/2013 6,000,000 USD 5,974,457 5,422,861 0.75

CNOOC Finance 2002 Ltd 6.375% 8/3/2012 (Reg) 830,000 USD 865,008 882,245 0.12

CNOOC Finance 2003 Ltd 5.5% 21/5/2033 (Reg) 8,615,000 USD 7,771,475 8,570,812 1.19

Gain Silver Finance Ltd 6.375% 25/8/2016 10,900,000 USD 10,851,035 8,511,835 1.18

Hutchison Whampoa International 01/11 Ltd 7% 16/2/2011(Reg) 10,900,000 USD 11,049,942 11,323,967 1.57

PCCW HKT Capital Ltd 8% 15/11/2011 (Reg) 12,000,000 USD 13,104,700 11,489,975 1.59

PCCW-HKT Capital No 2 Ltd 6% 15/7/2013 (Reg) 1,000,000 USD 1,018,746 842,921 0.12

PCCW-HKT Capital No 3 Ltd 5.25% 20/7/2015 (Reg) 4,000,000 USD 3,772,768 2,917,872 0.40

Wharf Finance Ltd 6.125% 6/11/2017 "EMTN" 7,300,000 USD 7,293,197 6,183,178 0.85

69,652,779 61,505,666 8.51

CANADA

Sino-Forest Corp. 9.125% 17/8/2011 (Reg) 5,000,000 USD 5,047,475 3,800,000 0.53

CAYMAN ISLANDS

Agile Property Holdings Ltd 9% 22/9/2013 (Reg) 8,000,000 USD 7,527,775 4,320,000 0.60

Greentown China Holdings Ltd 9% 8/11/2013 (Reg) 10,500,000 USD 7,938,444 3,675,000 0.51

Hutchison Whampoa Finance CI Ltd 7.45% 1/8/2017 (Reg) 6,000,000 USD 6,600,202 6,043,387 0.83

Hutchison Whampoa Finance CI Ltd 7.5% 1/8/2027 (Reg) 2,000,000 USD 2,174,053 1,896,928 0.26

Hutchison Whampoa International 03/13 Ltd 6.5%13/2/2013 (Reg) 20,400,000 USD 20,727,454 20,294,861 2.81



Lai Fung Holdings Ltd 9.125% 4/4/2014 4,000,000 USD 3,994,639 2,080,000 0.29

MGTI Finance Co., Ltd (Cayman) 8.375% 15/9/2010 14,900,000 USD 15,113,000 15,132,887 2.09

Parkson Retail Group Ltd 7.125% 30/5/2012 1,000,000 USD 1,000,000 648,750 0.09

Parkson Retail Group Ltd 7.875% 14/11/2011 6,000,000 USD 6,072,657 4,200,000 0.58

Sun Hung Kai Properties Capital Market Ltd 5.375%8/3/2017 "EMTN" 13,000,000 USD 12,443,070 12,372,343 1.71

Swire Pacific MTN Financing Ltd 6.25%18/4/2018 "EMTN" 4,000,000 USD 3,966,589 4,032,131 0.56

Towngas China Co., Ltd 8.25% 23/9/2011 8,000,000 USD 8,430,566 7,639,224 1.06

UOB Cayman Ltd FRN Perpetual (Reg) 7,800,000 USD 7,473,162 4,914,000 0.68

116,476,903 99,036,904 13.70


— ASIAN BOND —


91


HONG KONG

Bank of East Asia Ltd FRN 13/12/2015 2,000,000 USD 1,994,440 1,560,000 0.22

Chong Hing Bank Ltd FRN 16/12/2016 6,000,000 USD 6,000,000 5,686,548 0.79

Dah Sing Bank FRN 18/8/2017 7,000,000 USD 6,866,989 4,305,091 0.60

Dah Sing Bank FRN 6/5/2015 "EMTN" 900,000 USD 898,361 783,000 0.11

HKCG Finance Ltd 6.25% 7/8/2018 (Reg) 13,000,000 USD 13,068,993 13,884,323 1.92

Hong Kong Government Bond 3.73% 5/6/2013 "1306" 60,000,000 HKD 7,896,948 8,615,255 1.19

Wing Hang Bank Ltd FRN Perpetual "EMTN" 9,300,000 USD 9,239,155 3,720,000 0.51

45,964,886 38,554,217 5.34

INDIA

ICICI Bank Ltd FRN Perpetual (Reg) 1,000,000 USD 980,232 510,000 0.07

State Bank of India Ltd FRN Perpetual "EMTN" 2,000,000 USD 2,000,000 1,400,000 0.19

2,980,232 1,910,000 0.26

INDONESIA

Bank Danamon Indonesia Tbk PT 7.65% 30/3/2009(Step-up Coupon 10.279% 30/3/2014) (Reg) 10,000,000 USD 10,019,264 8,962,500 1.24

Bank Internasional Indonesia Tbk PT 7.75% 28/4/2010(Step-up Coupon 11.295% 28/4/2015) 2,500,000 USD 2,503,617 2,507,975 0.35

Bank Niaga Tbk PT 7.75% 14/7/2010(Step-up Coupon 10.016% 14/7/2015) 6,500,000 USD 6,559,848 6,520,670 0.90

Indonesia Government International Bond 6.625%17/2/2037 (Reg) 6,000,000 USD 5,607,860 4,320,000 0.60

Indonesia Government International Bond 6.75%10/3/2014 (Reg) 650,000 USD 480,067 565,500 0.08







Indonesia Treasury Bond 9.5% 15/6/2015 "FR27" 17,000,000,000 IDR 1,775,931 1,393,980 0.19

Lippo Karawaci Finance BV 8.875% 9/3/2011 7,000,000 USD 6,799,114 4,039,931 0.56

PT Bank Lippo Tbk (Cayman Islands) FRN 22/11/2016"EMTN" 9,400,000 USD 9,490,852 5,875,000 0.81

84,682,440 70,181,356 9.71

MALAYSIA

CIMB Investment Bank BHD 5% 15/4/2009(Step-up Coupon 8.7% 15/4/2014) 3,000,000 USD 2,959,009 3,004,830 0.42

Eon Bank BHD 5.375% 21/1/2009(Step-up Coupon 6.875% 21/1/2014) 800,000 USD 796,241 798,778 0.11

Penerbangan Malaysia BHD 5.625% 15/3/2016 (Reg) 10,000,000 USD 10,516,322 9,994,065 1.38

Petronas Capital Ltd 7% 22/5/2012 (Reg) 14,450,000 USD 15,360,266 15,368,668 2.13


— ASIAN BOND —


92


Petronas Capital Ltd 7.875% 22/5/2022 (Reg) 2,000,000 USD 2,397,624 2,275,156 0.31

Public Bank BHD 5% 20/6/2012(Step-up Coupon 6.604% 20/7/2017) 7,000,000 USD 6,780,955 5,740,000 0.79

Public Bank BHD 5.625% 22/9/2009(Step-up Coupon 7.18% 22/9/2014) 5,000,000 USD 4,992,704 4,975,995 0.69

Sarawak International, Inc. 5.5% 3/8/2015 8,000,000 USD 7,893,643 6,652,086 0.92

SBB Capital Corp. FRN Perpetual 14,000,000 USD 14,078,394 9,240,000 1.28

Telekom Malaysia BHD 7.875% 1/8/2025 (Reg) 6,150,000 USD 6,527,594 6,648,358 0.92

Tenaga Nasional BHD 7.5% 1/11/2025 (Reg) 6,000,000 USD 6,969,330 5,977,468 0.83

TM Global, Inc. 5.25% 22/9/2014 8,600,000 USD 8,584,838 8,037,322 1.11

87,856,920 78,712,726 10.89

NETHERLANDS

GT 2005 BONDS BV 10.25% 21/7/2010 6,000,000 USD 5,864,447 1,800,000 0.25

Indo Integrated Energy BV 8.5% 1/6/2012 9,100,000 USD 9,103,185 5,460,000 0.76

Majapahit Holding BV 7.25% 17/10/2011 (Reg) 5,000,000 USD 5,008,804 3,750,000 0.52




Media Nusantara Citra BV 10.75% 12/9/2011 7,660,714 USD 7,827,787 3,064,286 0.42

44,341,686 23,314,286 3.23

PERU

CFG Investment SAC 9.25% 19/12/2013 (Reg) 2,000,000 USD 1,164,147 1,100,000 0.15

PHILIPPINES

Development Bank of Philippines FRN Perpetual 8,500,000 USD 8,575,742 7,049,551 0.97

Land Bank of Philippines FRN 19/10/2016 11,300,000 USD 11,426,796 9,492,000 1.31

Philippine Government International Bond 6.375%15/1/2032 14,000,000 USD 13,746,731 13,160,000 1.82



Philippine Government International Bond 8%15/1/2016 1,050,000 USD 1,094,310 1,050,000 0.15

Philippine Government International Bond 8.75%7/10/2016 (Reg) 1,000,000 USD 1,174,125 1,050,000 0.15



Philippine Government International Bond 9.5% 2/2/2030 12,350,000 USD 14,278,853 13,585,000 1.88


Philippine Long Distance Telephone Co. 8.35%6/3/2017 "EMTN" 12,450,000 USD 13,760,539 11,578,500 1.60

Philippine Long Distance Telephone Co. 11.375%15/5/2012 2,750,000 USD 3,118,485 2,815,312 0.39

105,321,523 97,280,988 13.46


— ASIAN BOND —


93


SINGAPORE

Blue Ocean Resources Pte 11% 28/6/2012 (Reg) 5,000,000 USD 4,426,167 1,400,000 0.19

Ciliandra Perkasa Finance Co. Pte Ltd 10.75% 8/12/2011(Reg) 800,000 USD 422,563 384,000 0.05

DBS Bank Ltd (Singapore) 7.875% 10/8/2009 (Reg) 1,200,000 USD 1,217,077 1,225,812 0.17

DBS Bank Ltd (Singapore) FRN 16/5/2017 (Reg) 3,000,000 USD 2,947,396 2,700,000 0.37

DBS Bank Ltd (Singapore) FRN 15/11/2019 (Reg) 2,000,000 USD 1,923,960 1,560,000 0.22

Empire Capital Resources Pte Ltd 9.375% 15/12/2011 (Reg) 5,500,000 USD 5,654,799 3,575,000 0.50

Oversea-Chinese Banking Corp., Ltd 7.75% 6/9/2011 (Reg) 7,200,000 USD 8,191,759 7,272,000 1.01

PSA International Pte Ltd 5.9% 29/6/2016 (Reg) 12,000,000 USD 12,374,986 13,351,922 1.85

Singapore Telecommunications Ltd 6.375% 1/12/2011 (Reg) 3,600,000 USD 3,703,907 3,859,399 0.53

United Overseas Bank Ltd FRN 3/9/2019 (Reg) 6,000,000 USD 6,003,945 4,980,000 0.69

46,866,559 40,308,133 5.58

SOUTH KOREA

Export-Import Bank of Korea FRN 16/11/2010 7,000,000 USD 7,004,840 6,090,000 0.84

GS Caltex Corp. 7.25% 2/7/2013 (Reg) 6,000,000 USD 5,953,660 5,135,444 0.71

Hana Funding Ltd FRN Perpetual 4,400,000 USD 4,948,403 3,994,866 0.55

Hanarotelecom, Inc. 7% 1/2/2012 (Reg) 6,750,000 USD 6,780,384 5,467,500 0.76

Hyundai Capital Services, Inc. 5.5% 23/11/2010 8,000,000 USD 7,976,323 7,302,998 1.01

Industrial Bank of Korea FRN 19/5/2014 (Reg) 9,000,000 USD 8,729,955 8,824,977 1.22

Korea Development Bank 5.75% 10/9/2013 1,500,000 USD 1,510,755 1,275,000 0.18

Korea East-West Power Co., Ltd 5.25% 15/11/2012 (Reg) 4,000,000 USD 4,010,394 3,624,368 0.50

Korea Expressway Corp. 4.9% 1/7/2013 (Reg) 4,000,000 USD 3,871,347 3,508,448 0.49

Korea Expressway Corp. 5.125% 20/5/2015 (Reg) 4,600,000 USD 4,532,737 3,702,371 0.51

Korea Gas Corp. 4.75% 26/11/2010 (Reg) 8,000,000 USD 7,942,035 7,654,753 1.06

Korea Midland Power Co., Ltd 5.375% 11/2/2013 2,700,000 USD 2,687,551 2,461,259 0.34

Korea South-East Power Co., Ltd 6% 25/5/2016 (Reg) 7,000,000 USD 7,216,731 6,007,675 0.83

KT Corp. 4.875% 15/7/2015 (Reg) 7,000,000 USD 6,716,236 5,705,050 0.79

KT Corp. 5.875% 24/6/2014 (Reg) 2,000,000 USD 1,992,138 1,778,675 0.25

National Agricultural Cooperative Federation 5.125%26/5/2010 (Step-up Coupon 6.253% 26/5/2015) "EMTN" 3,000,000 USD 2,960,971 2,250,000 0.31

National Agricultural Cooperative Federation 5.55%23/10/2012 "EMTN" 3,000,000 USD 2,711,514 2,520,000 0.35

Shinhan Bank 5.125% 15/7/2010(Step-up Coupon 5.84% 15/7/2015) "EMTN" 3,000,000 USD 2,996,081 2,310,000 0.32

Shinhan Bank 5.75% 28/2/2011(Step-up Coupon 6.975% 28/2/2016) 3,000,000 USD 2,997,875 2,160,000 0.30

Shinhan Bank FRN 2/3/2035 650,000 USD 627,112 338,000 0.05

Shinsegae Co., Ltd 6.125% 27/6/2011 3,000,000 USD 2,993,177 2,766,920 0.38

SK Telecom Co., Ltd 4.25% 1/4/2011 (Reg) 5,150,000 USD 5,064,981 4,888,338 0.68

Standard Chartered First Bank Korea Ltd FRN3/3/2034 (Reg) 3,800,000 USD 3,919,537 2,774,000 0.38

Woori Bank FRN 2/5/2037 (Reg) 3,400,000 USD 3,085,785 1,700,000 0.23

109,230,522 94,240,642 13.04


— ASIAN BOND —


94


THAILAND

Bangkok Bank PCL (Hong Kong) 9.025% 15/3/2029 (Reg) 4,600,000 USD 5,177,642 3,910,000 0.54

IRPC PCL 6.375% 25/5/2017 3,000,000 USD 3,031,555 2,372,567 0.33

PTT Chemical PCL 5.5% 24/6/2015 "0311" 2,000,000 USD 1,981,018 1,583,375 0.22

Thai Oil PCL 5.1% 9/6/2015 6,000,000 USD 5,752,232 5,020,366 0.69

15,942,447 12,886,308 1.78

VIETNAM

Electricity of Vietnam 9.6% 8/11/2016 5,430,712 USD 5,430,712 4,286,135 0.59

Vietnam Machinery Installation Corp. 9.2% 6/6/2017 2,989,723 USD 2,989,723 1,502,126 0.21

8,420,435 5,788,261 0.80

TOTAL BONDS 748,429,255 629,744,487 87.14

SECURITISED ASSETSCAYMAN ISLANDS

Start CLO Ltd FRN 26/12/2011 2,700,000 USD 2,700,000 2,293,380 0.32

Start CLO Ltd FRN 7/6/2011 4,250,000 USD 4,250,000 3,804,600 0.52

6,950,000 6,097,980 0.84

LUXEMBOURG

Merrill Lynch SA FRN 3/8/2011 "EMTN" 4,000,000 USD 4,000,000 3,000,000 0.42

TOTAL SECURITISED ASSETS 10,950,000 9,097,980 1.26

TOTAL TRANSFERABLE SECURITIES ADMITTED TO ANOFFICIAL STOCK EXCHANGE LISTING OR DEALT INON ANOTHER REGULATED MARKET 759,379,255 638,842,467 88.40


— ASIAN BOND —


95


UNLISTED SECURITIES

BONDS

INDIA

ICICI Bank Ltd/Bahrain 6.625% 3/10/2012 (Reg) 1,900,000 USD 1,898,802 1,501,000 0.21

THAILAND

BankThai PCL FRN 17/7/2016 "EMTN" 6,000,000 USD 6,000,000 4,444,560 0.61

THAILAND

Kasikornbank PCL 8.25% 21/8/2016 (Reg) 4,350,000 USD 4,652,583 3,828,000 0.53

MALAYSIA

YTL Power International BHD 3% 18/4/2013 12,000,000 MYR 3,552,237 3,219,501 0.45

TOTAL BONDS 16,103,622 12,993,061 1.80

SECURITISED ASSETS

LUXEMBOURG



TOTAL UNLISTED SECURITIES 21,103,622 16,918,061 2.34

TOTAL INVESTMENTS 780,482,877 655,760,528 90.74




— ASIAN BOND —


96



SHARES & RIGHTS

CAYMAN ISLANDS

China Shanshui Cement Group Ltd 601,000 HKD 217,746 139,586 3.08

CHINA

Bank of China Ltd "H" 606,000 HKD 311,050 165,769 3.66

China Merchants Bank Co., Ltd "H" 58,500 HKD 98,456 108,394 2.40

Focus Media Holding Ltd – ADR 8,800 USD 234,266 77,440 1.71

Ping An Insurance Group Company of China Ltd "H" 25,000 HKD 101,652 120,967 2.67

RREEF China Commercial Trust – REIT 588,000 HKD 268,863 200,299 4.42

Shui On Land Ltd 285,500 HKD 234,016 90,254 1.99

1,248,303 763,123 16.85

HONG KONG

China Merchants Holdings International Co., Ltd 48,330 HKD 179,507 93,417 2.06

China Unicom Ltd 134,966 HKD 261,128 161,958 3.58

CNOOC Ltd 154,000 HKD 124,830 143,865 3.18

Henderson Land Development Co., Ltd 35,000 HKD 111,942 129,613 2.86

Kowloon Development Co., Ltd 49,000 HKD 83,474 18,462 0.41

Swire Pacific Ltd "A" 21,000 HKD 222,401 144,560 3.19

Techtronic Industries Co. 265,500 HKD 322,505 52,757 1.16

1,305,787 744,632 16.44

INDIA

Aban Offshore Ltd 4,585 INR 234,337 63,553 1.40

Bharti Airtel Ltd 12,714 INR 258,065 187,777 4.15

ICICI Bank Ltd – ADR 6,723 USD 193,690 128,947 2.85

IVRCL Infrastructures & Projects Ltd 14,839 INR 179,607 44,032 0.97

865,699 424,309 9.37

INDONESIA

Bank Rakyat Indonesia 274,000 IDR 134,572 114,741 2.53

PT Astra International Tbk 84,500 IDR 101,368 81,599 1.80

235,940 196,340 4.33

MALAYSIA

Tanjong PLC 36,500 MYR 133,906 140,121 3.09

PHILIPPINES

Metropolitan Bank & Trust 252,200 PHP 214,427 121,990 2.69

SINGAPORE

DBS Group Holdings Ltd 18,000 SGD 225,497 105,503 2.33

DBS Group Holdings Ltd (Rights) 9,000 SGD 36,106 18,795 0.42

Singapore Telecommunications Ltd 72,000 SGD 118,653 127,806 2.82

380,256 252,104 5.57


— ASIAN DYNAMIC —


97


SOUTH KOREA

Hankook Tire Co., Ltd 13,210 KRW 204,262 160,464 3.54

Hanwha Chem Corp. 17,688 KRW 255,676 84,259 1.86

S1 Corp. (Korea) 4,200 KRW 179,685 180,064 3.97

Samsung Electronics Co., Ltd 498 KRW 298,927 178,316 3.94

Shinsegae Co., Ltd 459 KRW 242,669 175,648 3.88

SK Energy Co., Ltd 2,675 KRW 208,739 159,920 3.53

1,389,958 938,671 20.72

TAIWAN

AU Optronics Corp. 196,299 TWD 284,205 147,857 3.26

Delta Electronics, Inc. 88,000 TWD 225,504 170,405 3.76

HON HAI Precision Industry Co., Ltd 49,910 TWD 216,088 97,712 2.16

Taiwan Cement Corp. 153,520 TWD 221,623 126,168 2.79

947,420 542,142 11.97

THAILAND

Kasikornbank PCL 56,800 THB 89,522 73,543 1.62

PTT PCL (Foreign Market) 29,900 THB 203,380 150,554 3.33

292,902 224,097 4.95


OTHER NET ASSETS 42,488 0.94



— ASIAN DYNAMIC —


98



SHARES & RIGHTS

CHINA


BYD Electronic International Co., Ltd 8,351,000 HKD 10,016,812 2,941,691 0.59

China COSCO Holdings Co., Ltd "H" 13,675,500 HKD 19,281,559 9,511,037 1.91

China Petroleum & Chemical Corp. "H" 5,968,000 HKD 7,310,888 3,611,582 0.73

Ctrip.com International Ltd – ADR 256,800 USD 9,738,967 5,736,912 1.15


Guangzhou R&F Properties Co., Ltd "H" 4,873,600 HKD 18,699,833 5,376,651 1.08

Ping An Insurance Group Company of China Ltd "H" 2,160,000 HKD 8,327,797 10,451,555 2.10

RREEF China Commercial Trust – REIT 8,195,000 HKD 5,452,495 2,791,571 0.56

Shui On Land Ltd 11,825,500 HKD 9,199,911 3,738,363 0.75

Yanzhou Coal Mining Co., Ltd "H" 5,352,000 HKD 6,493,292 3,929,382 0.79

141,525,231 69,000,072 13.86

HONG KONG


BOC Hong Kong Holdings Ltd 2,255,000 HKD 5,676,645 2,554,683 0.51

China Mobile Ltd 2,038,500 HKD 20,178,458 20,463,795 4.11


CNOOC Ltd 8,480,000 HKD 6,159,679 7,921,917 1.59


Hengan International Group Co., Ltd 3,562,000 HKD 11,230,087 11,444,297 2.30


Hutchison Whampoa Ltd 2,652,000 HKD 13,888,487 13,294,145 2.67

Kowloon Development Co., Ltd 3,905,100 HKD 7,257,775 1,471,333 0.30


159,644,941 121,599,537 24.43

INDIA

Aditya Birla Nuvo Ltd 369,560 INR 13,258,718 4,384,068 0.88

ICICI Bank Ltd 1,121,691 INR 11,959,155 10,375,267 2.08

ICICI Bank Ltd – ADR 103,651 USD 5,336,037 1,988,026 0.40

IVRCL Infrastructures & Projects Ltd 947,460 INR 7,271,490 2,811,382 0.56

Reliance Capital Ltd 426,383 INR 15,915,565 4,768,150 0.96

Satyam Computer Services Ltd (Demat Shares) 837,336 INR 2,885,864 2,952,152 0.59

Sterlite Industries India Ltd 394,303 INR 8,675,989 2,117,003 0.43

Suzlon Energy Ltd 1,511,835 INR 7,933,234 1,944,212 0.39


90,500,728 40,985,005 8.23

INDONESIA

Bakrie and Brothers Tbk PT 296,826,000 IDR 16,714,862 1,358,470 0.27

Bank Rakyat Indonesia 35,575,500 IDR 19,786,881 14,897,733 2.99

Bumi Resources Tbk PT 56,124,500 IDR 4,395,949 4,674,896 0.94


— ASIAN EQUITY —


99


Energi Mega Persada Tbk PT 104,185,000 IDR 10,722,804 801,055 0.16

Medco Energi Internasional Tbk PT 22,625,931 IDR 6,929,067 3,872,809 0.78


61,169,150 27,082,927 5.44

MALAYSIA

Bumiputra-Commerce Holdings BHD 4,403,800 MYR 13,156,071 7,436,034 1.49

PHILIPPINES

Metropolitan Bank & Trust 13,208,800 PHP 13,249,379 6,389,112 1.28

Philippine Long Distance Telephone Co. 202,370 PHP 11,044,177 9,001,311 1.81

24,293,556 15,390,423 3.09

SINGAPORE

ARA Asset Management Ltd 10,494,000 SGD 8,962,210 2,666,325 0.53

Cosco Corporation Singapore Ltd 6,762,000 SGD 13,349,396 4,471,754 0.90

DBS Group Holdings Ltd 1,672,000 SGD 13,603,261 9,800,031 1.97

DBS Group Holdings Ltd (Rights) 836,000 SGD 2,178,114 1,745,849 0.35

Yanlord Land Group Ltd 9,669,000 SGD 19,134,360 6,023,982 1.21

57,227,341 24,707,941 4.96

SOUTH KOREA

Hana Financial Group, Inc. 280,007 KRW 11,460,346 4,334,990 0.87

Hankook Tire Co., Ltd 848,830 KRW 12,801,132 10,310,904 2.07

KB Financial Group, Inc. 240,330 KRW 5,665,401 6,430,170 1.29

Korea Exchange Bank 319,130 KRW 4,966,950 1,603,821 0.32

LG Dacom Corp. 641,430 KRW 17,074,371 10,134,141 2.04

LG Display Co., Ltd 365,860 KRW 6,511,289 6,099,845 1.23

Lotte Shopping Co., Ltd 47,662 KRW 12,131,300 7,946,505 1.60

NCSoft Corp. 102,738 KRW 6,330,387 4,290,436 0.86

S1 Corp. (Korea) 205,876 KRW 13,798,074 8,826,409 1.77

Samsung Electronics Co., Ltd 44,510 KRW 20,891,034 15,937,446 3.20

Shinsegae Co., Ltd 28,567 KRW 12,299,926 10,931,915 2.20

SK Energy Co., Ltd 123,579 KRW 10,137,918 7,387,955 1.48

134,068,128 94,234,537 18.93

TAIWAN

Advanced Semiconductor Engineering, Inc. 20,418,139 TWD 21,339,191 7,347,229 1.48

Chinatrust Financial Holding Co., Ltd 16,808,862 TWD 7,153,207 7,124,896 1.43

Far Eastern Textile Co., Ltd 22,022,000 TWD 23,763,438 14,102,674 2.83

HON HAI Precision Industry Co., Ltd 6,426,203 TWD 26,895,358 12,580,992 2.53

MediaTek, Inc. 1,495,429 TWD 16,281,511 10,055,410 2.02


Yuanta Financial Holding Co., Ltd 7,035,660 TWD 4,352,136 3,153,898 0.63

126,179,597 70,593,168 14.18




100


THAILAND

Bangkok Bank PCL (Foreign Market) 6,484,300 THB 16,189,875 12,966,724 2.60

PTT PCL (Foreign Market) 1,023,300 THB 6,906,568 5,152,564 1.04

23,096,443 18,119,288 3.64







101



SHARES & RIGHTS

AUSTRALIAAMP Ltd 6,702 AUD 50,114 25,162 1.24Aristocrat Leisure Ltd 11,190 AUD 82,542 30,075 1.48Australia & New Zealand Banking Group Ltd 4,820 AUD 88,440 51,051 2.52Foster's Group Ltd 7,484 AUD 28,429 28,513 1.41Insurance Australia Group Ltd 17,529 AUD 70,715 47,234 2.33Lend Lease Corp., Ltd 2,876 AUD 30,021 14,344 0.71Macquarie Airports 13,157 AUD 31,165 21,874 1.08Macquarie Media Group Ltd 16,297 AUD 62,365 10,950 0.54Metcash Ltd 14,905 AUD 52,892 45,223 2.23National Australia Bank Ltd 517 AUD 7,109 7,474 0.37Orica Ltd 1,736 AUD 19,098 16,812 0.83QBE Insurance Group Ltd 2,881 AUD 58,172 51,509 2.54SP AusNet 51,604 AUD 49,666 33,959 1.67Suncorp-Metway Ltd 7,023 AUD 81,114 40,865 2.02TABCORP Holdings Ltd 4,276 AUD 49,129 20,704 1.02Telstra Corp., Ltd 20,001 AUD 58,826 53,064 2.62Westpac Banking Corp. 2,202 AUD 36,885 25,885 1.28

856,682 524,698 25.89

CAYMAN ISLANDSBelle International Holdings Ltd 55,000 HKD 24,694 24,129 1.19

CHINAAnhui Expressway Co. "H" 40,000 HKD 33,147 14,452 0.71Industrial & Commercial Bank of China "H" 116,000 HKD 68,386 61,068 3.01RREEF China Commercial Trust – REIT 27,000 HKD 17,964 9,197 0.46Shenzhen Chiwan Wharf Holdings Ltd "B" 14,500 HKD 25,078 12,535 0.62

144,575 97,252 4.80

HONG KONGBOC Hong Kong Holdings Ltd 27,500 HKD 69,401 31,155 1.54China Mobile Ltd 7,500 HKD 65,598 75,290 3.71CNOOC Ltd 58,000 HKD 53,682 54,183 2.67Hang Seng Bank Ltd 3,600 HKD 58,931 47,241 2.33Texwinca Holdings Ltd 38,000 HKD 28,614 16,181 0.80

276,226 224,050 11.05

INDONESIABank Rakyat Indonesia 89,500 IDR 55,955 37,479 1.85Telekomunikasi Indonesia Tbk PT 92,000 IDR 75,808 58,105 2.87

131,763 95,584 4.72

MALAYSIAPublic Bank BHD (Foreign Market) 16,500 MYR 30,048 41,673 2.06Tanjong PLC 10,000 MYR 39,312 38,389 1.89

69,360 80,062 3.95


— ASIAN EQUITY INCOME —


102


PHILIPPINESPhilippine Long Distance Telephone Co. 1,290 PHP 60,492 57,379 2.83

SINGAPOREAllco Commercial Real Estate Investment Trust – REIT 67,200 SGD 42,533 10,993 0.54ARA Asset Management Ltd 96,000 SGD 82,138 24,392 1.20CapitaCommercial Trust – REIT 28,600 SGD 30,010 17,818 0.88DBS Group Holdings Ltd 6,000 SGD 57,867 35,168 1.73DBS Group Holdings Ltd (Rights) 3,000 SGD 9,266 6,265 0.31First Ship Lease Trust – Unit 32,000 SGD 31,674 10,915 0.54Macquarie International Infrastructure Fund Ltd 47,420 SGD 29,616 9,738 0.48Singapore Post Ltd 27,000 SGD 19,857 14,942 0.74Singapore Press Holdings Ltd 15,000 SGD 46,885 32,474 1.60Singapore Technologies Engineering Ltd 15,000 SGD 27,807 24,747 1.22StarHub Ltd 31,000 SGD 63,231 41,864 2.07

440,884 229,316 11.31

SOUTH KOREAKB Financial Group, Inc. 1,100 KRW 84,838 29,431 1.45Macquarie Korea Infrastructure Fund 2,547 KRW 18,318 9,706 0.48

103,156 39,137 1.93

TAIWANAcer, Inc. 22,812 TWD 37,886 29,635 1.46Chunghwa Telecom Co., Ltd 32,670 TWD 68,504 53,300 2.63Delta Electronics, Inc. 28,340 TWD 75,132 54,878 2.71Far EasTone Telecommunications Co., Ltd 32,357 TWD 46,361 36,805 1.82Quanta Computer, Inc. 22,000 TWD 23,406 23,213 1.14Siliconware Precision Industries Co. 28,280 TWD 46,770 24,147 1.19Taiwan Mobile Co., Ltd 41,000 TWD 78,861 60,889 3.00Taiwan Semiconductor Manufacturing Co., Ltd 19,718 TWD 37,321 26,698 1.32

414,241 309,565 15.27

THAILANDAdvanced Info Service PCL (Foreign Market) 13,500 THB 36,177 30,880 1.52Bangkok Expressway PCL (Foreign Market) 88,200 THB 57,932 43,903 2.17Electricity Generating PCL (Foreign Market) 8,200 THB 17,314 17,341 0.85Land and Houses PCL (Foreign Market) 171,800 THB 30,205 18,982 0.94PTT PCL (Foreign Market) 9,200 THB 78,057 46,324 2.28Siam Cement PCL (Foreign Market) 10,000 THB 70,246 31,362 1.55Siam City Bank PCL (Foreign Market) 123,500 THB 60,810 25,052 1.24Siam City Cement PCL (Foreign Market) 4,000 THB 24,194 15,422 0.76

374,935 229,266 11.31





103


UNLISTED SECURITIES

SHARES

MALAYSIAMalayan Banking BHD 26,375 MYR 82,368 38,826 1.92

TOTAL UNLISTED SECURITIES 82,368 38,826 1.92







104



SHARES

CHINA

Angang Steel Co., Ltd "H" 796,000 HKD 448,526 890,488 1.23


China Railway Group Ltd "H" 4,668,000 HKD 3,970,443 3,234,454 4.46

China Shenhua Energy Co., Ltd "H" 593,500 HKD 3,409,887 1,255,916 1.73

China Shipping Container Lines Co., Ltd "H" 5,998,000 HKD 726,737 905,499 1.25

Jiangsu Expressway Co., Ltd "H" 3,166,000 HKD 3,451,918 2,328,529 3.21

Sinotruk Hong Kong Ltd 2,667,000 HKD 2,878,008 1,796,344 2.47

18,741,290 12,405,830 17.10

HONG KONG

Cheung Kong Infrastructure Holdings Ltd 321,000 HKD 1,298,170 1,207,367 1.67

China Mobile Ltd 585,000 HKD 6,684,845 5,872,612 8.09

China Resources Power Holdings Co. 996,000 HKD 3,226,449 1,914,880 2.64

CNOOC Ltd 1,832,000 HKD 3,129,773 1,711,433 2.36

Guangdong Investment Ltd 6,506,000 HKD 3,558,082 2,610,780 3.60

Hong Kong & China Gas Co., Ltd 1,044,900 HKD 2,477,970 1,577,453 2.17

MTR Corp. 699,263 HKD 2,187,600 1,620,477 2.23

NWS Holdings Ltd 1,351,625 HKD 3,594,305 2,012,602 2.77

26,157,194 18,527,604 25.53

INDIA

Bharat Heavy Electricals Ltd 29,454 INR 1,677,624 828,445 1.14

Bharti Airtel Ltd 157,570 INR 3,162,607 2,327,203 3.21

NTPC Ltd 515,967 INR 2,702,416 1,923,494 2.65

Reliance Industries Ltd 88,884 INR 5,379,063 2,261,777 3.12

12,921,710 7,340,919 10.12

INDONESIA

Telekomunikasi Indonesia Tbk PT 417,000 IDR 300,100 263,368 0.36

MALAYSIA

PLUS Expressways BHD 2,106,600 MYR 1,955,222 1,811,992 2.50

Tenaga Nasional BHD 911,800 MYR 2,459,917 1,644,893 2.26

4,415,139 3,456,885 4.76

PHILIPPINES

Manila Water Co., Inc. 5,422,800 PHP 1,866,735 1,511,084 2.08

PNOC Energy Development Corp. 14,734,000 PHP 2,228,731 588,740 0.81

4,095,466 2,099,824 2.89

SINGAPORE

SembCorp Industries Ltd 992,000 SGD 3,751,357 1,602,060 2.21

Singapore Telecommunications Ltd 1,378,000 SGD 3,711,167 2,446,068 3.37

7,462,524 4,048,128 5.58


— ASIAN INFRASTRUCTURE EQUITY —


105


SOUTH KOREA

GS Holdings Corp. 48,714 KRW 2,766,086 1,040,377 1.43

Hyundai Heavy Industries 3,744 KRW 415,888 593,012 0.82

Korea Electric Power Corp. 150,810 KRW 6,204,352 3,544,104 4.88

Macquarie Korea Infrastructure Fund 584,920 KRW 3,961,221 2,229,063 3.07

POSCO 3,281 KRW 691,011 989,861 1.37

S1 Corp. (Korea) 31,475 KRW 1,874,493 1,349,410 1.86

15,913,051 9,745,827 13.43

TAIWAN

China Steel Corp. 2,052,790 TWD 2,966,068 1,446,045 1.99

Chunghwa Telecom Co., Ltd 1,413,739 TWD 2,469,814 2,306,473 3.18

Far EasTone Telecommunications Co., Ltd 1,272,188 TWD 1,886,455 1,447,057 1.99

Formosa Petrochemical Corp. 668,000 TWD 2,019,073 1,381,120 1.90

Taiwan Secom Co., Ltd 769,000 TWD 1,473,611 1,113,898 1.54

10,815,021 7,694,593 10.60

THAILAND

Advanced Info Service PCL (Foreign Market) 453,400 THB 1,186,218 1,037,125 1.43

PTT Chemical PCL (Foreign Market) 856,300 THB 761,202 782,262 1.08

Siam Cement PCL (Foreign Market) 339,400 THB 2,534,577 1,064,439 1.46

Thai Tap Water Supply PCL (Foreign Market) 11,638,200 THB 1,623,153 1,399,731 1.93

6,105,150 4,283,557 5.90


UNLISTED SECURITIES

SHARES

INDIA

GAIL India Ltd – GDR 66,318 USD 2,659,635 1,691,109 2.33






— ASIAN INFRASTRUCTURE EQUITY —


106



BONDS

BERMUDA

Nine Dragons Paper Holdings Ltd 7.875% 29/4/2013 (Reg) 2,800,000 USD 2,774,875 700,000 0.21

CAYMAN ISLANDS

Agile Property Holdings Ltd 9% 22/9/2013 (Reg) 1,500,000 USD 1,372,891 823,125 0.24

Greentown China Holdings Ltd 9% 8/11/2013 (Reg) 4,000,000 USD 3,279,350 1,378,800 0.41

Swire Pacific MTN Financing Ltd 4.93% 28/3/2013"EMTN" 20,000,000 HKD 2,606,437 2,771,558 0.81

7,258,678 4,973,483 1.46

HONG KONG

Cathay Pacific Airways Ltd 3.82% 9/11/2011 "MTN" 2,000,000 SGD 1,320,026 1,400,647 0.41

Cathay Pacific Airways Ltd FRN 9/11/2011 "MTN" 1,000,000 SGD 631,262 674,031 0.20

Hong Kong Government Bond 2.03%18/3/2013 "05Y1303" 20,000,000 HKD 2,532,319 2,683,082 0.78

Hong Kong Government Bond 2.88% 17/6/2013 10,000,000 HKD 1,293,053 1,389,412 0.41

Hong Kong Government Bond 3.27% 28/8/2023 5,000,000 HKD 649,730 846,318 0.25



Hong Kong Government Bond 3.73% 5/6/2013 "1306" 14,000,000 HKD 1,801,428 2,010,931 0.59


18,997,575 21,805,769 6.39

INDIA

ICICI Bank Ltd 3.92% 15/2/2012 "EMTN" 15,000,000 SGD 9,791,094 9,168,317 2.69

INDONESIA

Indonesia Recapitalization Bond 13.15% 15/1/2012 "FR17" 35,000,000,000 IDR 4,009,272 3,317,400 0.97

Indonesia Recapitalization Bond 13.4% 15/2/2011 "FR15" 8,000,000,000 IDR 910,221 757,425 0.22

Indonesia Treasury Bond 9% 15/9/2013 "FR49" 4,868,000,000 IDR 448,820 402,366 0.12

Indonesia Treasury Bond 9% 15/9/2018 "FR48" 50,000,000,000 IDR 4,950,565 3,826,522 1.12


Indonesia Treasury Bond 9.5% 15/7/2023 "FR46" 6,000,000,000 IDR 483,719 457,577 0.14









— ASIAN LOCAL BOND —


107




43,578,120 35,629,748 10.44

INTERNATIONAL

Central American Bank for Economic Integration 4.8%3/11/2011 "EMTN" 30,000,000 HKD 3,885,588 4,112,493 1.20

MALAYSIA

Malayan Banking BHD FRN 25/9/2068 5,000,000 MYR 1,467,569 1,408,458 0.41

Malaysia Government Bond 3.461% 31/7/2013 "0108" 5,000,000 MYR 1,457,940 1,468,688 0.43


Malaysia Government Bond 4.24% 7/2/2018 "2/03" 12,000,000 MYR 3,463,091 3,733,859 1.09

Malaysia Government Bond 4.72% 30/9/2015 "2/05" 930,000 MYR 253,708 293,938 0.09

Malaysia Government Bond 5.094% 30/4/2014 "2/04" 5,000,000 MYR 1,479,622 1,592,576 0.47


Malaysia Government Bond 5.734% 30/7/2019 "3/04" 2,000,000 MYR 658,025 707,748 0.21

Putrajaya Holdings Sdn BHD 5.6% 13/7/2018 "IMTN" 5,000,000 MYR 1,632,184 1,522,264 0.45

Rantau Abang Capital BHD 4.39% 15/3/2011 "IMTN" 4,000,000 MYR 1,119,189 1,176,154 0.34

14,184,784 14,793,558 4.34

NETHERLANDS

GT 2005 BONDS BV 10.25% 21/7/2010 4,000,000 USD 3,759,591 1,200,000 0.35

Indo Integrated Energy BV 8.5% 1/6/2012 2,100,000 USD 2,048,000 1,174,293 0.35

5,807,591 2,374,293 0.70

PHILIPPINES

National Power Corp. 5.875% 19/12/2016 250,000,000 PHP 5,060,729 5,313,930 1.56

Philippine Government Bond 5.5% 21/2/2010 "3-16" 20,486,534 PHP 428,634 428,450 0.12

Philippine Government Bond 5.75% 21/2/2012 "5-65" 76,000,000 PHP 1,794,084 1,580,478 0.46






Philippine Government Bond 9.125% 4/9/2016 "1042" 80,001,107 PHP 1,848,633 1,853,112 0.54

Philippine Government Bond 10.25% 19/1/2026 "2012" 64,000,000 PHP 1,546,537 1,387,215 0.41

Philippine Government Bond 12% 22/7/2011 "7-37" 9,500,000 PHP 265,399 221,399 0.06

19,130,661 19,215,346 5.63

SINGAPORE

Banyan Tree Holdings Ltd 5.5% 1/8/2011 "MTN" 3,000,000 SGD 2,220,655 2,140,127 0.63

Blue Ocean Resources Pte 11% 28/6/2012 (Reg) 2,000,000 USD 1,724,026 559,872 0.16

CapitaLand Treasury Ltd FRN 15/3/2011 "MTN" 2,000,000 SGD 1,230,614 1,308,287 0.38

CCT MTN Pte Ltd 3.15% 24/1/2011 "MTN" 1,000,000 SGD 630,648 704,159 0.21

CCT MTN Pte Ltd 3.85% 20/8/2010 "MTN" 2,000,000 SGD 1,429,127 1,283,213 0.38

City Developments Ltd 5.5% 12/6/2010 "MTN" 3,000,000 SGD 2,040,044 2,169,865 0.63

Ezra Holdings Ltd 5.285% 1/8/2011 "MTN" 1,000,000 SGD 734,978 612,579 0.18

Mapletree Treasury Services Ltd 4.6% 20/8/2013 "MTN" 3,000,000 SGD 2,190,524 2,191,082 0.64




108


Singapore Government Bond 1.625% 1/4/2013 5,800,000 SGD 3,895,601 4,080,246 1.20






Singapore Government Bond 4% 1/9/2018 6,000,000 SGD 4,636,734 4,887,959 1.43

United Overseas Bank Ltd FRN 3/9/2019 50,000 SGD 35,552 34,315 0.01

39,852,844 40,818,058 11.96

SOUTH KOREA

Export-Import Bank of Korea 2.55% 20/7/2009 "EMTN" 3,000,000 SGD 1,994,822 2,086,770 0.61

Industrial Bank of Korea FRN 19/5/2014 (Reg) 145,000 USD 113,310 133,899 0.04

Korea Monetary Stabilization Bond 5% 14/2/2009 "7705" 2,000,000,000 KRW 2,083,341 1,595,232 0.47

Korea Monetary Stabilization Bond 5.1% 11/3/2010 "8711" 5,000,000,000 KRW 4,988,753 4,053,513 1.19

Korea Monetary Stabilization Bond 5.15%12/2/2010 "8707" 900,000,000 KRW 881,197 726,223 0.21

Korea Monetary Stabilization Bond 5.21%25/5/2009 "7719" 5,000,000,000 KRW 4,031,268 4,004,514 1.17


Korea Monetary Stabilization Bond 5.4% 14/5/2010 "8721" 2,000,000,000 KRW 1,961,358 1,628,568 0.48



Korea Monetary Stabilization Bond 6.24%12/12/2009 "7751" 640,000,000 KRW 690,069 521,188 0.15

Korea Monetary Stabilization Bond FRN 9/4/2009 "8073" 5,000,000,000 KRW 3,825,151 3,909,803 1.15

Korea Treasury Bond 4.25% 10/9/2014 "1409" 6,000,000,000 KRW 4,259,471 4,703,912 1.38




Korea Treasury Bond 5.5% 10/3/2028 "2803" 300,000,000 KRW 248,503 258,898 0.08


Korean Treasury Bond 4.75% 17/9/2013 "1309" 8,650,000,000 KRW 7,898,468 7,002,954 2.05

Korean Treasury Bond 5% 10/3/2011 "1103" 3,900,000,000 KRW 3,759,373 3,180,460 0.93

Korean Treasury Bond 5% 10/9/2016 "1609" 10,000,000,000 KRW 10,622,569 8,141,955 2.39





Woori Bank 6.125% 3/5/2011(Step-up Coupon 6.505% 3/5/2016) (Reg) 3,000,000 USD 2,990,307 2,315,850 0.68

99,861,867 86,678,970 25.41

TAIWAN

Taiwan Government Bond 1.75% 31/3/2016 "A95103" 240,000,000 TWD 7,141,856 7,441,403 2.18


Taiwan Government Bond 2% 20/7/2013 "974A" 50,000,000 TWD 1,609,983 1,584,795 0.47




109


Taiwan Government Bond 2.125% 24/9/2018 "97-6" 40,000,000 TWD 1,279,455 1,303,109 0.38


Taiwan Government Bond 2.375% 16/1/2013 "A97101" 26,000,000 TWD 846,968 831,592 0.24


Taiwan Government Bond 2.625% 14/8/2028 "975A" 50,000,000 TWD 1,740,272 1,720,973 0.50

24,388,759 25,114,134 7.36

THAILAND

Thailand Government Bond 4.25% 13/3/2013 57,000,000 THB 1,837,894 1,774,763 0.52

Thailand Government Bond 5% 3/12/2014 "05-2" 30,000,000 THB 968,845 988,229 0.29



Thailand Government Bond 5.25% 12/5/2014 20,000,000 THB 676,021 662,769 0.19

Thailand Government Bond 5.375% 3/12/2019 "05-3" 40,000,000 THB 1,043,656 1,420,678 0.42

Thailand Government Bond 5.5% 13/3/2023 30,000,000 THB 883,186 1,085,336 0.32



12,404,644 14,217,537 4.17

UNITED STATES OF AMERICA

ASIF Global Financing XXVII 2.38% 26/2/2009 (Reg) 1,900,000 SGD 1,181,064 1,310,180 0.38

Federal National Mortgage Association 2.29% 19/2/2009 1,500,000 SGD 974,363 1,044,168 0.31

General Electric Capital Corp. 3.03% 11/2/2013 "EMTN" 250,000 SGD 138,482 177,060 0.05

General Electric Capital Corp. 3.65% 6/4/2009 "EMTN" 2,000,000 SGD 1,345,906 1,401,078 0.41

General Electric Capital Corp. 4.69% 6/2/2012 "EMTN" 3,000,000 HKD 336,930 406,662 0.12

Morgan Stanley 3.585% 23/10/2012 "EMTN" 3,000,000 SGD 2,100,565 1,710,347 0.50

6,077,310 6,049,495 1.77

VIETNAM

Electricity of Vietnam 9.6% 8/11/2016 7,053,683 USD 7,053,683 5,567,049 1.63

Vietnam Machinery Installation Corp. 9.2% 6/6/2017 1,993,149 USD 1,993,149 1,001,418 0.30

9,046,832 6,568,467 1.93

TOTAL BONDS 317,041,222 292,219,668 85.66

SECURITISED ASSETS

LUXEMBOURG


MALAYSIA

Cagamas MBS BHD 4.17% 27/5/2022 "6" 2,500,000 MYR 734,647 620,253 0.18






110


UNLISTED SECURITIES

BONDS

BRITISH VIRGIN ISLANDS

CLP Power Hong Kong Financing Ltd 4.38%11/1/2017 "EMTN" 10,000,000 HKD 1,292,010 1,437,520 0.42

CLP Power Hong Kong Financing Ltd 4.75%18/8/2023 "EMTN" 10,000,000 HKD 1,366,830 1,618,205 0.47

Hysan MTN Ltd 5.25% 11/8/2015 "MTN" 20,000,000 HKD 2,656,000 2,890,565 0.85

5,314,840 5,946,290 1.74

CAYMAN ISLANDS

Cheung Kong Bond Finance Ltd 3.48% 22/4/2013 "EMTN" 30,000,000 HKD 3,849,785 3,967,727 1.16

Swire Pacific MTN Financing Ltd 4.08%28/7/2011 "EMTN" 25,000,000 HKD 3,213,558 3,354,395 0.99

7,063,343 7,322,122 2.15

MALAYSIA

Binariang GSM Sdn BHD 5.35% 28/12/2012 "IMTN" 5,000,000 MYR 1,499,635 1,445,225 0.42

Binariang GSM Sdn BHD 5.55% 27/12/2013 "IMTN" 8,750,000 MYR 2,763,564 2,509,444 0.74

CIMB Bank BHD FRN 7/10/2038 5,000,000 MYR 1,450,751 1,471,953 0.43

Kuala Lumpur Kepong BHD 4% 10/5/2012 "IMTN" 3,500,000 MYR 1,077,789 995,282 0.29

Public Bank BHD FRN 22/12/2036 15,000,000 MYR 4,220,007 4,162,405 1.22

YTL Power International BHD 3% 18/4/2013 3,000,000 MYR 888,094 795,090 0.23

11,899,840 11,379,399 3.33

TOTAL BONDS 24,278,023 24,647,811 7.22

SECURITISED ASSETS

LUXEMBOURG










111



SHARES

AUSTRALIA

CFS Retail Property Trust – REIT 91,311 AUD 159,663 118,281 1.74

Commonwealth Property Office Fund – REIT 40,589 AUD 48,136 33,177 0.49

Dexus Property Group – REIT 475,031 AUD 606,784 269,827 3.98

Goodman Group – REIT 93,847 AUD 386,982 48,106 0.71

GPT Group – REIT 611,453 AUD 1,119,406 389,674 5.74

Mirvac Group – REIT 203,080 AUD 611,895 180,064 2.65

Stockland – REIT 192,755 AUD 1,195,080 539,433 7.95

Westfield Group – REIT 65,841 AUD 1,075,663 590,631 8.70

5,203,609 2,169,193 31.96

CHINA

RREEF China Commercial Trust – REIT 419,000 HKD 209,472 142,730 2.10

HONG KONG

Henderson Land Development Co., Ltd 26,000 HKD 96,628 96,283 1.42

Link REIT (The) – REIT 178,173 HKD 400,630 294,271 4.33

Regal Real Estate Investment Trust – REIT 692,000 HKD 205,092 86,611 1.28

702,350 477,165 7.03

JAPAN

Japan Prime Realty Investment Corp. – REIT 82 JPY 248,744 191,059 2.82

Japan Real Estate Investment Corp. – REIT 64 JPY 700,879 564,695 8.32

Japan Retail Fund Investment Corp. – REIT 41 JPY 224,841 174,971 2.58

Nippon Building Fund, Inc. – REIT 55 JPY 724,201 596,242 8.78

Nomura Real Estate Office Fund, Inc. – REIT 46 JPY 363,654 294,718 4.34

2,262,319 1,821,685 26.84

MALAYSIA

AmFirst Real Estate Investment Trust – REIT 682,700 MYR 195,345 157,644 2.32

Axis Real Estate Investment Trust – REIT 317,600 MYR 197,402 102,673 1.51

Hektar Real Estate Investment Trust – REIT 293,000 MYR 130,557 65,120 0.96

Starhill Real Estate Investment Trust – REIT 722,600 MYR 220,961 151,215 2.23

Tower Real Estate Investment Trust – REIT 471,800 MYR 166,210 119,839 1.77

UOA Real Estate Investment Trust – REIT 422,100 MYR 168,427 130,364 1.92

1,078,902 726,855 10.71

SINGAPORE

Allco Commercial Real Estate Investment Trust – REIT 201,000 SGD 129,475 32,881 0.48

ARA Asset Management Ltd 412,000 SGD 274,412 104,681 1.54

Ascott Residence Trust – REIT 246,000 SGD 267,609 99,321 1.46

Cambridge Industrial Trust – REIT 519,000 SGD 276,708 99,353 1.46

CapitaCommercial Trust – REIT 295,000 SGD 252,715 183,791 2.71

CapitaMall Trust – REIT 139,000 SGD 247,621 153,848 2.27

CDL Hospitality Trusts – REIT 108,000 SGD 135,370 54,882 0.81


— ASIAN PROPERTY SECURITIES —


112


Lippo-Mapletree Indonesia Retail Trust – REIT 288,000 SGD 147,290 62,149 0.92

Macarthurcook Industrial REIT – REIT 364,000 SGD 287,238 64,613 0.95

Macquarie Prime REIT – REIT 180,000 SGD 136,783 65,156 0.96

Mapletree Logistics Trust – REIT 319,500 SGD 205,970 77,843 1.15

2,361,191 998,518 14.71

TOTAL SHARES 11,817,843 6,336,146 93.35

MUTUAL FUNDS

THAILAND

CPN Retail Growth Property Fund 800,700 THB 268,481 179,700 2.65

TOTAL MUTUAL FUNDS 268,481 179,700 2.65





— ASIAN PROPERTY SECURITIES —


113



SHARES

CAYMAN ISLANDSChina Shanshui Cement Group Ltd 11,673,000 HKD 3,967,707 2,711,133 1.61Netease.com – ADR 84,600 USD 1,436,055 1,869,660 1.11Sina Corp. (China) 124,600 USD 3,798,178 2,852,094 1.70

9,201,940 7,432,887 4.42

CHINAAnhui Conch Cement Co., Ltd "H" 214,000 HKD 1,033,323 984,395 0.59Anhui Expressway Co. "H" 1,884,000 HKD 1,524,774 680,667 0.41Bank of China Ltd "H" 20,806,000 HKD 9,798,009 5,691,416 3.39Beijing Capital International Airport Co., Ltd "H" 9,932,000 HKD 8,783,900 4,985,195 2.97Byd Co., Ltd "H" 4,372,900 HKD 7,590,020 7,165,874 4.27BYD Electronic International Co., Ltd 4,978,666 HKD 4,747,062 1,753,765 1.04China Coal Energy Co. "H" 5,119,000 HKD 10,619,336 4,075,362 2.43China Construction Bank Corp. "H" 13,013,000 HKD 6,693,019 7,136,121 4.25China Life Insurance Co., Ltd "H" 2,199,000 HKD 8,656,254 6,682,085 3.98China Petroleum & Chemical Corp. "H" 10,440,000 HKD 11,598,392 6,317,849 3.76China Shenhua Energy Co., Ltd "H" 1,440,000 HKD 6,122,877 3,047,209 1.81China Shipping Container Lines Co., Ltd "H" 12,522,000 HKD 2,710,044 1,890,407 1.13China Shipping Development Co., Ltd "H" 2,324,000 HKD 6,635,472 2,308,994 1.37Ctrip.com International Ltd – ADR 78,400 USD 3,661,615 1,751,456 1.04Focus Media Holding Ltd – ADR 387,200 USD 7,901,514 3,407,360 2.03Fosun International 5,772,000 HKD 4,560,196 1,891,716 1.13Industrial & Commercial Bank of China "H" 27,729,000 HKD 19,696,230 14,597,895 8.69PetroChina Co., Ltd 8,418,000 HKD 11,191,400 7,375,213 4.39Ping An Insurance Group Company of China Ltd "H" 501,500 HKD 4,915,614 2,426,599 1.44Travelsky Technology Ltd 12,191,000 HKD 9,866,195 5,348,280 3.18Xingda International Holdings Ltd 16,550,000 HKD 2,298,495 1,580,249 0.94

150,603,741 91,098,107 54.24

HONG KONGAAC Acoustic Technologies Holdings, Inc. 11,042,000 HKD 12,057,657 4,958,187 2.95China Mobile Ltd 1,617,500 HKD 23,278,518 16,237,522 9.67China Power International Development Ltd 19,380,000 HKD 5,465,135 4,001,010 2.38China Unicom Ltd 10,026,030 HKD 17,888,774 12,031,169 7.16CNOOC Ltd 6,911,000 HKD 10,778,272 6,456,176 3.85Franshion Properties China Ltd 29,876,000 HKD 10,073,766 8,095,387 4.82GOME Electrical Appliances Holdings Ltd 25,881,000 HKD 10,624,190 2,805,151 1.67Huabao International Holdings Ltd 10,460,000 HKD 8,703,098 6,856,323 4.08

98,869,410 61,440,925 36.58





— CHINA EQUITY —


114



SHARES

CHINA

Anhui Conch Cement Co., Ltd "H" 292,000 HKD 1,409,955 1,343,193 1.02


Beijing Capital International Airport Co., Ltd "H" 2,836,000 HKD 3,777,468 1,423,481 1.09

Byd Co., Ltd "H" 3,537,400 HKD 5,998,795 5,796,739 4.42

BYD Electronic International Co., Ltd 1,672,333 HKD 2,320,540 589,089 0.45


China Shenhua Energy Co., Ltd "H" 1,212,500 HKD 5,217,326 2,565,792 1.96

China Shipping Development Co., Ltd "H" 1,954,000 HKD 4,524,028 1,941,383 1.48

Ctrip.com International Ltd – ADR 42,300 USD 1,680,421 944,982 0.72


Fosun International 1,831,500 HKD 2,337,549 600,256 0.46

Industrial & Commercial Bank of China "H" 12,977,000 HKD 9,734,783 6,831,724 5.21

Ping An Insurance Group Company of China Ltd "H" 451,000 HKD 3,356,539 2,182,246 1.66

Travelsky Technology Ltd 4,546,000 HKD 3,861,775 1,994,363 1.52

65,011,124 37,164,684 28.35

HONG KONG



China Resources Power Holdings Co. 806,000 HKD 1,958,232 1,549,591 1.18


CNOOC Ltd 3,179,000 HKD 4,304,324 2,969,785 2.27

Franshion Properties China Ltd 9,300,000 HKD 3,674,130 2,519,986 1.92

GOME Electrical Appliances Holdings Ltd 12,886,000 HKD 6,470,781 1,396,668 1.07


49,958,018 30,893,742 23.57

INDIA

Bharat Heavy Electricals Ltd 98,222 INR 2,512,946 2,762,665 2.11

Bharat Petroleum Corp., Ltd 165,089 INR 1,238,712 1,281,659 0.98


Cairn India Ltd 599,440 INR 2,049,303 2,128,882 1.62

GAIL India Ltd 512,335 INR 2,427,580 2,181,218 1.66

HDFC Bank Ltd 299,125 INR 8,008,169 6,164,341 4.70

Hindustan Unilever Ltd 480,601 INR 2,295,260 2,483,114 1.89

Housing Development Finance Corp. 118,964 INR 5,578,826 3,650,080 2.79

ICICI Bank Ltd 407,274 INR 8,133,084 3,767,148 2.87

Infosys Technologies Ltd 252,506 INR 9,259,488 5,813,972 4.44

Infrastructure Development Finance Co., Ltd 470,422 INR 1,477,190 648,657 0.50

ITC Ltd 1,390,495 INR 6,079,137 4,928,228 3.76

Larsen & Toubro Ltd 110,842 INR 3,575,856 1,770,338 1.35

Maruti Suzuki India Ltd 201,626 INR 3,366,958 2,165,050 1.65

NTPC Ltd 436,136 INR 1,589,597 1,625,889 1.24


— DRAGON PEACOCK —


115


Oil & Natural Gas Corp., Ltd 232,264 INR 4,880,031 3,198,335 2.44


Satyam Computer Services Ltd (Demat Shares) 319,712 INR 3,055,951 1,127,192 0.86


85,918,941 58,694,572 44.77





— DRAGON PEACOCK —


116



BONDS

AUSTRALIA

Australia & New Zealand Banking Group Ltd 3.375%1/3/2011 "EMTN" 1,000,000 EUR 998,395 962,149 0.47

Australia & New Zealand Banking Group Ltd 4.375%24/5/2012 "EMTN" 500,000 EUR 498,560 479,670 0.24

Commonwealth Bank of Australia 3.625%5/4/2011 "EMTN" 1,000,000 EUR 998,181 965,659 0.47

National Australia Bank Ltd 4.625% 7/6/2012 "EMTN" 500,000 EUR 498,609 502,960 0.25

National Australia Bank Ltd FRN 4/6/2015 "EMTN" 1,000,000 EUR 1,014,793 926,195 0.45

Telstra Corp., Ltd 4.75% 21/3/2017 "EMTN" 450,000 EUR 449,394 384,521 0.19

Telstra Corp., Ltd 6.375% 29/6/2011 "EMTN" 200,000 EUR 212,699 203,330 0.10

Westpac Banking Corp. 4.875% 28/9/2012 "EMTN" 800,000 EUR 797,332 785,596 0.39

WT Finance Aust Pty Ltd/Westfield Europe Finance PLC/WEA Finance LLC 3.625% 27/6/2012 1,150,000 EUR 1,129,665 957,766 0.47

6,597,628 6,167,846 3.03

AUSTRIA

Erste Bank der Oesterreichischen Sparkassen AG FRN19/7/2017 "EMTN" 500,000 EUR 501,015 351,700 0.17

BELGIUM

Elia System Operator SA/NV 4.75% 13/5/2014 1,000,000 EUR 999,383 999,910 0.49

Fortis Bank SA/NV FRN Perpetual 600,000 EUR 690,385 346,140 0.17

1,689,768 1,346,050 0.66

CANADA

Royal Bank of Canada 5.75% 25/7/2011 "EMTN" 1,852,000 EUR 1,847,710 1,897,040 0.93

Xstrata Canada Financial Corp. 6.25% 27/5/2015 "EMTN" 772,000 EUR 767,179 429,103 0.21

2,614,889 2,326,143 1.14

CAYMAN ISLANDS

BES Finance Ltd 6.25% 17/5/2011 "EMTN" 900,000 EUR 951,118 941,811 0.46

MUFG Capital Finance 4 Ltd FRN Perpetual 350,000 EUR 350,000 206,202 0.10

Principal Financial Global Funding II LLC 4.5%26/1/2017 "EMTN" 700,000 EUR 697,951 529,599 0.26

1,999,069 1,677,612 0.82

CZECH REPUBLIC

CEZ 5.125% 12/10/2012 500,000 EUR 499,495 488,790 0.24

CEZ 6% 18/7/2014 "EMTN" 300,000 EUR 298,329 295,986 0.15

797,824 784,776 0.39


— EUROPEAN INVESTMENT GRADE BOND —

STATEMENT OF INVESTMENTS AS AT DECEMBER 31, 2008(expressed in EUR)

117


DENMARK

Danica Pension Livsforsikringsaktieselskab FRN Perpetual 100,000 EUR 99,884 99,600 0.05

Dong Energy A/S FRN 29/6/3005 500,000 EUR 497,974 389,065 0.19

597,858 488,665 0.24

ESTONIA

Eesti Energia AS 4.5% 18/11/2020 417,000 EUR 415,059 435,005 0.22

FINLAND

Fortum Oyj 4.5% 20/6/2016 "EMTN" 300,000 EUR 298,641 287,272 0.14

FRANCE

Autoroutes du Sud de la France 5.625% 4/7/2022 750,000 EUR 748,527 568,845 0.28

AXA SA FRN Perpetual "EMTN" 200,000 EUR 200,000 101,850 0.05

BNP Paribas FRN 22/1/2019 "EMTN" 750,000 EUR 741,561 712,204 0.35

Bouygues 4.25% 22/7/2020 500,000 EUR 499,247 396,527 0.19

Caisse Nationale des Caisses d'Epargne et de Prevoyance FRNPerpetual "EMTN" 1,000,000 EUR 1,086,728 953,968 0.47

Cie de Saint-Gobain 4.875% 31/5/2016 1,500,000 EUR 1,468,384 1,196,519 0.59

Credit Agricole SA/London 5.971% 1/2/2018 "EMTN" 2,000,000 EUR 2,006,127 2,069,450 1.02

Credit Logement SA FRN 15/6/2017 700,000 EUR 668,722 541,128 0.27

EDF 5% 5/2/2018 1,000,000 EUR 993,864 993,836 0.49

France Government Bond OAT 3.75% 25/4/2017 3,000,000 EUR 2,859,903 3,106,500 1.53

France Telecom SA 4.375% 21/2/2012 "EMTN" 1,500,000 EUR 1,476,660 1,505,571 0.74

France Telecom SA 8.125% 28/1/2033 "EMTN" 500,000 EUR 711,557 598,427 0.29

GIE PSA Tresorerie 5.875% 27/9/2011 800,000 EUR 844,645 810,806 0.40

Imerys SA 5.125% 25/4/2014 "EMTN" 1,000,000 EUR 1,045,045 863,970 0.42

Klepierre 4.625% 15/7/2011 700,000 EUR 715,330 713,197 0.35

Lafarge SA 5.375% 26/6/2017 "EMTN" 1,000,000 EUR 996,462 748,772 0.37

Lafarge SA 6.125% 28/5/2015 "EMTN" 200,000 EUR 199,138 172,734 0.08

RTE EDF Transport SA 4.125% 27/9/2016 "EMTN" 150,000 EUR 149,039 146,605 0.07

Schneider Electric SA 5.375% 8/1/2015 "EMTN" 1,000,000 EUR 1,003,800 1,000,722 0.49

SFR SA 3.375% 18/7/2012 300,000 EUR 299,778 299,785 0.15

Societe Generale 5.25% 28/3/2013 "EMTN" 750,000 EUR 747,656 766,147 0.38

Societe Generale FRN Perpetual 750,000 EUR 725,756 429,833 0.21

Solvay Finance BV FRN 2/6/2104 150,000 EUR 149,013 110,254 0.05

Veolia Environnement 4.375% 11/12/2020 "EMTN" 400,000 EUR 396,648 327,873 0.16

Veolia Environnement 6.125% 25/11/2033 "EMTN" 750,000 EUR 905,213 662,707 0.33

WPP Finance SAS 5.25% 30/1/2015 500,000 EUR 499,949 335,926 0.17

22,138,752 20,134,156 9.90

GERMANY

Bayer AG 4.5% 23/5/2013 "EMTN" 650,000 EUR 648,228 639,481 0.31

Bertelsmann AG 4.75% 26/9/2016 300,000 EUR 298,197 265,080 0.13

Bundesrepublik Deutschland 6.25% 4/1/2030 "00" 4,750,000 EUR 5,861,947 6,379,298 3.14

Deutsche Boerse AG FRN 13/6/2038 1,550,000 EUR 1,544,720 1,195,825 0.59

HT1 Funding GmbH FRN Perpetual 500,000 EUR 507,040 161,051 0.08

Muenchener Rueckversicherungs AG FRN 21/6/2023 100,000 EUR 114,127 91,913 0.05

Muenchener Rueckversicherungs AG FRN Perpetual 400,000 EUR 394,703 228,526 0.11



STATEMENT OF INVESTMENTS AS AT DECEMBER 31, 2008 (continued)(expressed in EUR)

118


Volkswagen Bank GmbH FRN 27/6/2011 "EMTN" 550,000 EUR 549,808 473,891 0.23

Volkswagen Leasing GmbH 4.875% 18/10/2012 "EMTN" 500,000 EUR 498,248 484,392 0.24

10,417,018 9,919,457 4.88

ICELAND

Danaher European Finance Co. EHF 4.5% 22/7/2013 150,000 EUR 149,591 144,081 0.07

INTERNATIONAL

European Investment Bank 4.75% 15/10/2017 "EMTN" 4,000,000 EUR 4,171,175 4,267,920 2.10

IRELAND

Aegon Global Institutional Markets PLC 4.25%23/1/2012 "EMTN" 2,000,000 EUR 1,997,633 1,646,320 0.81

Bank of Ireland FRN 27/2/2019 "EMTN" 1,000,000 EUR 932,217 798,392 0.39

GE Capital European Funding 5.25% 18/5/2015 "EMTN" 4,000,000 EUR 3,991,008 3,801,549 1.87

Irish Life Assurance PLC FRN Perpetual 200,000 EUR 198,422 76,144 0.04

TransCapitalInvest Ltd for OJSC AK Transneft 5.381%27/6/2012 (Reg) 1,000,000 EUR 1,000,000 702,053 0.35

8,119,280 7,024,458 3.46

ITALY

ASM SpA 4.875% 28/5/2014 1,000,000 EUR 1,043,820 1,051,464 0.52

Atlantia SpA 5% 9/6/2014 "EMTN" 500,000 EUR 514,811 479,526 0.24

Banca Lombarda e Piemontese SpA 6.875%23/2/2010 "EMTN" 1,000,000 EUR 1,034,730 1,050,453 0.52

Banco Popolare SC FRN 15/6/2016 "EMTN" 300,000 EUR 299,687 224,949 0.11

Edison SpA 5.125% 10/12/2010 "EMTN" 850,000 EUR 873,101 862,271 0.42

Enel SpA 5.25% 20/6/2017 "EMTN" 500,000 EUR 498,223 473,039 0.23

Enel SpA 5.25% 20/5/2024 "EMTN" 500,000 EUR 540,727 507,890 0.25

ENI SpA 5.875% 20/1/2014 "EMTN" 900,000 EUR 897,440 950,490 0.47

Hera SpA 4.125% 16/2/2016 200,000 EUR 199,830 202,161 0.10

IFIL – Investments SpA 5.375% 12/6/2017 1,000,000 EUR 973,649 700,000 0.34

UniCredit SpA 4.875% 12/2/2013 "EMTN" 1,000,000 EUR 998,785 996,200 0.49

UniCredit SpA 6% 16/3/2011 "MTN1" 900,000 EUR 944,802 903,739 0.44

8,819,605 8,402,182 4.13

JAPAN

Bank of Tokyo-Mitsubishi UFJ Ltd FRN16/12/2015 "EMTN" 550,000 EUR 547,696 495,000 0.24

JERSEY

ASIF III Jersey Ltd 3.5% 11/3/2009 "EMTN" 2,000,000 EUR 2,001,521 1,869,000 0.92

BAA Funding Ltd FRN 15/2/2014 (Reg) 1,350,000 EUR 1,066,893 1,101,497 0.54

WPP PLC 4.375% 5/12/2013 200,000 EUR 199,419 138,433 0.07

3,267,833 3,108,930 1.53

LUXEMBOURG

Ciba Specialty Chemicals Finance Luxembourg SA 4.875%20/6/2018 200,000 EUR 210,112 191,706 0.09

Dexia Funding SA/Luxembourg FRN Perpetual 150,000 EUR 150,000 64,623 0.03

Gaz Capital SA 6.605% 13/2/2018 "EMTN" 1,000,000 EUR 851,172 588,384 0.29




119


Glencore Finance Europe SA 5.25% 11/10/2013 "EMTN" 500,000 EUR 497,029 229,960 0.11

Glencore Finance Europe SA 7.125% 23/4/2015 "EMTN" 350,000 EUR 347,947 154,000 0.08

Holcim Finance Luxembourg SA 4.375% 9/12/2014 700,000 EUR 708,564 651,110 0.32

ITW Finance Europe SA 5.25% 1/10/2014 500,000 EUR 499,483 456,175 0.22

JP Morgan Bank Luxembourg SA for Swiss Life FRNPerpetual 350,000 EUR 348,127 126,306 0.06

Prologis International Funding SA 5.875% 23/10/2014 1,250,000 EUR 1,225,148 313,413 0.15

SES SA 4.375% 21/10/2013 "EMTN" 600,000 EUR 597,011 523,260 0.26

Telecom Italia Finance SA 7.5% 20/4/2011 "EMTN" 1,500,000 EUR 1,564,557 1,474,627 0.73

Telecom Italia Finance SA 7.75% 24/1/2033 "EMTN" 300,000 EUR 379,741 257,453 0.13

7,378,891 5,031,017 2.47

NETHERLANDS

ABN Amro Bank NV FRN 8/6/2015 "EMTN" 850,000 EUR 848,698 660,356 0.32

Allianz Finance BV FRN Perpetual "XW" 850,000 EUR 846,511 494,699 0.24

Allianz Finance II BV 5% 6/3/2013 "EMTN" 500,000 EUR 498,197 510,900 0.25

BMW Finance NV 4.875% 18/10/2012 "EMTN" 1,250,000 EUR 1,248,595 1,204,916 0.59

Cemex Finance Europe BV 4.75% 5/3/2014 300,000 EUR 298,359 137,289 0.07

CEZ Finance BV 4.625% 8/6/2011 500,000 EUR 496,608 532,274 0.26

Cimpor Financial Operations BV 4.5% 27/5/2011 "EMTN" 1,000,000 EUR 1,015,288 952,283 0.47

Deutsche Telekom International Finance BV 6.625%11/7/2011 500,000 EUR 517,642 521,684 0.26

Deutsche Telekom International Finance BV 7.5%24/1/2033 "EMTN" 300,000 EUR 413,057 326,900 0.16

Deutsche Telekom International Finance BV 8.125%29/5/2012 1,000,000 EUR 1,096,563 1,080,587 0.53

Diageo Capital BV 5.5% 1/7/2013 "EMTN" 600,000 EUR 598,044 602,826 0.30

E.ON International Finance BV 5.5% 2/10/2017 "EMTN" 1,350,000 EUR 1,364,923 1,386,140 0.68

E.ON International Finance BV 5.75% 7/5/2020 "EMTN" 132,000 EUR 131,104 133,324 0.07

EDP Finance BV 4.25% 12/6/2012 "EMTN" 500,000 EUR 498,174 495,340 0.24

EDP Finance BV 4.625% 13/6/2016 "EMTN" 400,000 EUR 398,667 408,370 0.20

ELM BV for Swiss Reinsurance Co. FRN Perpetual 100,000 EUR 100,000 35,040 0.02

Eureko BV FRN Perpetual 500,000 EUR 500,246 253,050 0.12

Generali Finance BV FRN Perpetual 250,000 EUR 250,000 153,842 0.08

Generali Finance BV FRN Perpetual 150,000 EUR 150,000 98,522 0.05

Koninklijke KPN NV 4.5% 21/7/2011 "EMTN" 800,000 EUR 820,760 786,465 0.39

Koninklijke KPN NV 4.75% 29/5/2014 "GMTN" 50,000 EUR 49,449 46,325 0.02

Koninklijke KPN NV 4.75% 17/1/2017 "GMTN" 150,000 EUR 149,750 131,642 0.07

Koninklijke KPN NV 5% 13/11/2012 "EMTN" 263,000 EUR 261,279 252,754 0.12

Linde Finance BV 4.75% 24/4/2017 "EMTN" 750,000 EUR 716,602 693,482 0.34

Linde Finance BV 6.75% 8/12/2015 "EMTN" 200,000 EUR 199,077 211,140 0.10

PACCAR Financial Europe BV 5.125% 19/5/2011 "EMTN" 600,000 EUR 598,378 531,720 0.26

Rabobank Nederland NV FRN 28/7/2015 "EMTN" 1,000,000 EUR 999,196 890,130 0.44

Repsol International Finance BV 5% 22/7/2013 "EMTN" 500,000 EUR 494,489 470,227 0.23

Rodamco Europe Finance BV 3.75% 12/12/2012 "EMTN" 1,500,000 EUR 1,496,633 1,439,935 0.71

Syngenta Finance NV 4.125% 22/4/2015 "EMTN" 350,000 EUR 349,858 324,718 0.16

TNT NV 5.375% 14/11/2017 1,500,000 EUR 1,493,963 1,353,705 0.67




120


Urenco Finance NV 5.375% 22/5/2015 "EMTN" 650,000 EUR 648,647 644,523 0.32

Verbund International Finance BV 5% 25/6/2014 515,000 EUR 512,934 556,793 0.27

20,061,691 18,321,901 9.01

NORWAY

DnB NOR Bank ASA 5.875% 20/6/2013 "EMTN" 1,450,000 EUR 1,444,815 1,482,625 0.73

DnB NOR Bank ASA FRN Perpetual 800,000 EUR 946,112 657,127 0.32

Statkraft AS 4.625% 22/9/2017 "EMTN" 250,000 EUR 249,427 231,570 0.12

Telenor ASA 4.875% 29/5/2017 "EMTN" 1,500,000 EUR 1,453,051 1,281,001 0.63

4,093,405 3,652,323 1.80

PORTUGAL

REN - Redes Energeticas Nacionais SA 6.375%10/12/2013 "EMTN" 500,000 EUR 498,009 509,934 0.25

SPAIN

Bancaja Emisiones SA Unipersonal FRN Perpetual "EMTN" 1,000,000 EUR 1,041,031 221,122 0.11

Banco Bilbao Vizcaya Argentaria SA FRN 12/11/2015 500,000 EUR 518,583 464,412 0.23

Banco de Sabadell SA FRN Perpetual 250,000 EUR 250,000 169,880 0.08

Banesto Banco de Emisiones SA FRN 23/3/2016 500,000 EUR 509,328 458,235 0.22

BBVA International Preferred SA Unipersonal FRN Perpetual 300,000 EUR 297,081 161,529 0.08

BBVA Subordinated Capital SAU FRN 24/10/2016"EMTN" 500,000 EUR 493,838 400,005 0.20

Santander Issuances S.A Unipersonal FRN 24/10/2017"EMTN" 750,000 EUR 751,356 673,063 0.33

Telefonica Emisiones SAU 4.375% 2/2/2016 "EMTN" 750,000 EUR 716,333 681,459 0.33

Telefonica Emisiones SAU 5.58% 12/6/2013 "EMTN" 500,000 EUR 500,000 502,213 0.25

5,077,550 3,731,918 1.83

SWEDEN

Swedbank AB FRN 27/9/2017 "GMTN" 1,500,000 EUR 1,479,876 1,218,116 0.60

Telefonaktiebolaget LM Ericsson 5.375%27/6/2017 "EMTN" 1,000,000 EUR 996,913 798,147 0.39

Vattenfall Treasury AB FRN Perpetual 400,000 EUR 401,940 339,532 0.17

Volvo Treasury AB 5% 31/5/2017 "EMTN" 750,000 EUR 739,233 583,371 0.29

3,617,962 2,939,166 1.45

SWITZERLAND

Credit Suisse (London) 6.125% 5/8/2013 "EMTN" 1,200,000 EUR 1,196,396 1,224,092 0.60

UBS AG (Jersey) FRN 25/9/2018 "EMTN" 2,000,000 EUR 1,955,966 1,570,693 0.77

UBS AG (Jersey) FRN Perpetual "EMTN" 450,000 EUR 450,000 312,222 0.16

UBS AG (London) 6% 18/4/2018 "EMTN" 1,000,000 EUR 994,545 994,534 0.49

4,596,907 4,101,541 2.02

UNITED KINGDOM

AIB UK 1 LP FRN Perpetual 600,000 EUR 616,997 141,102 0.07

Alliance & Leicester PLC 3.5% 9/3/2011 "EMTN" 1,000,000 EUR 998,607 974,154 0.48

Anglian Water Services Financing PLC 4.625%7/10/2013 "EMTN" 1,000,000 EUR 993,102 1,004,486 0.49




121


Anglian Water Services Financing PLC 6.25%27/6/2016 "EMTN" 1,440,000 EUR 1,439,178 1,486,804 0.73

Anglo American Capital PLC 5.875% 17/4/2015 "EMTN" 750,000 EUR 750,956 573,057 0.28

Aviva PLC FRN 22/5/2038 "EMTN" 445,000 EUR 444,747 237,123 0.12

Aviva PLC FRN Perpetual 1,000,000 EUR 1,024,018 403,000 0.20

Barclays Bank PLC 6% 23/1/2018 "EMTN" 500,000 EUR 499,968 480,854 0.24

Barclays Bank PLC FRN 30/5/2017 "EMTN" 1,000,000 EUR 999,579 765,420 0.38

Barclays Bank PLC FRN Perpetual 500,000 EUR 595,102 335,947 0.17

Barclays Bank PLC FRN Perpetual "EMTN" 250,000 EUR 261,901 110,273 0.05

BAT International Finance PLC 5.375%29/6/2017 "EMTN" 1,500,000 EUR 1,492,781 1,363,841 0.67

British Telecommunications PLC 5.25%22/1/2013 "EMTN" 500,000 EUR 499,365 464,110 0.23

British Telecommunications PLC 5.25%23/6/2014 "EMTN" 1,000,000 EUR 997,488 903,695 0.44

Centrica PLC 7.125% 9/12/2013 "EMTN" 1,550,000 EUR 1,542,512 1,596,469 0.78

Clerical Medical Finance PLC FRN Perpetual 425,000 EUR 339,417 187,661 0.09

Hammerson PLC 4.875% 19/6/2015 225,000 EUR 224,804 149,744 0.07

HBOS PLC FRN 13/3/2014 "EMTN" 500,000 EUR 495,335 322,104 0.16

HBOS PLC FRN 30/10/2019 "EMTN" 1,000,000 EUR 969,308 782,213 0.38

HSBC Bank PLC FRN 18/3/2016 "EMTN" 1,500,000 EUR 1,478,176 1,410,438 0.69

HSBC Bank PLC FRN 30/9/2020 "EMTN" 500,000 EUR 487,883 368,715 0.18

Imperial Tobacco Finance PLC 4.375%22/11/2013 "EMTN" 150,000 EUR 149,396 123,026 0.06

Imperial Tobacco Finance PLC 7.25% 15/9/2014 "EMTN" 269,000 EUR 268,455 256,422 0.13

Lloyds TSB Bank PLC FRN 5/3/2018 "EMTN" 1,250,000 EUR 1,253,037 1,201,795 0.59

Lloyds TSB Bank PLC FRN Perpetual 500,000 EUR 415,301 287,679 0.14

National Grid Electricity Transmission PLC 6.625%28/1/2014 "EMTN" 800,000 EUR 798,822 826,960 0.41

National Grid Gas PLC 5.125% 14/5/2013 "EMTN" 1,000,000 EUR 999,886 974,157 0.48

National Grid PLC 4.375% 10/3/2020 "EMTN" 850,000 EUR 839,721 723,738 0.36

Nationwide Building Society 3.125% 26/1/2010 "EMTN" 1,500,000 EUR 1,497,924 1,437,102 0.71

Old Mutual PLC FRN 18/1/2017 "EMTN" 800,000 EUR 785,112 386,969 0.19

OTE PLC 5.375% 14/2/2011 "GMTN" 1,250,000 EUR 1,250,358 1,221,715 0.60

Rexam PLC 4.375% 15/3/2013 "EMTN" 600,000 EUR 605,242 470,839 0.23

Royal Bank of Scotland Group PLC FRN Perpetual 100,000 EUR 100,000 42,312 0.02

Royal Bank of Scotland PLC (The) FRN28/1/2016 "EMTN" 1,000,000 EUR 995,182 896,500 0.44

Severn Trent Utilities Finance PLC 5.25%11/3/2016 "EMTN" 1,800,000 EUR 1,792,986 1,750,411 0.86

SL Finance PLC FRN Perpetual 500,000 EUR 505,469 250,915 0.12

Standard Chartered Bank 5.875% 26/9/2017 "APR" 750,000 EUR 710,342 630,582 0.31

Standard Chartered PLC 4.875% 11/3/2011 1,000,000 EUR 999,146 998,730 0.49

Tesco PLC 5.625% 12/9/2012 "EMTN" 650,000 EUR 649,605 655,200 0.32

United Utilities Water PLC 4.25% 24/1/2020 "EMTN" 1,000,000 EUR 967,399 912,993 0.45

Vodafone Group PLC FRN 6/6/2014 "EMTN" 750,000 EUR 750,000 624,150 0.31

WPP Group PLC 6.625% 12/5/2016 "EMTN" 270,000 EUR 269,475 184,637 0.09

33,754,082 28,918,042 14.21




122



3M Co. 5% 14/7/2014 1,250,000 EUR 1,245,429 1,352,704 0.67

Air Products & Chemicals, Inc. 4.25% 10/4/2012 200,000 EUR 203,715 193,011 0.09

American International Group, Inc. FRN 22/5/2038 (Reg) 500,000 EUR 497,805 144,950 0.07

American International Group, Inc. FRN 15/3/2067 "A3" 500,000 EUR 499,022 123,707 0.06

AT&T, Inc. 4.375% 15/3/2013 1,200,000 EUR 1,181,857 1,092,178 0.54

AT&T, Inc. 6.125% 2/4/2015 "GLOB" 550,000 EUR 549,514 523,234 0.26

BA Credit Card Trust 4.15% 19/4/2010 "03A5" 2,000,000 EUR 2,020,678 1,831,400 0.90

Bank of America Corp. FRN 23/5/2017 "EMTN" 2,000,000 EUR 1,984,829 1,705,506 0.84

BMW US Capital LLC 5% 28/5/2015 "EMTN" 650,000 EUR 646,705 569,241 0.28

Bristol-Myers Squibb Co. 4.375% 15/11/2016 200,000 EUR 200,004 180,355 0.09

Cargill, Inc. 6.25% 24/7/2015 "EMTN" 500,000 EUR 498,154 466,242 0.23

Citibank Credit Card Issuance Trust 5.375% 11/4/2011 1,500,000 EUR 1,454,187 1,452,554 0.71

Citigroup, Inc. 3.95% 10/10/2013 "EMTN" 2,000,000 EUR 1,826,586 1,716,902 0.84

Citigroup, Inc. FRN 30/11/2017 "EMTN" 750,000 EUR 749,528 553,016 0.27

Commerzbank Capital Funding Trust I FRN Perpetual 500,000 EUR 493,596 179,308 0.09

Credit Suisse Group Finance US, Inc. FRN 14/9/2020 560,000 EUR 559,927 399,948 0.20

Daimler North America Corp. 4.375% 16/3/2010 "EMTN" 1,000,000 EUR 995,059 969,736 0.48

Daimler North America Corp. 4.375% 21/3/2013 "EMTN" 1,000,000 EUR 991,897 870,920 0.43

Daimler North America Corp. 5% 23/5/2012 "EMTN" 400,000 EUR 398,871 376,400 0.19

Eurohypo Capital Funding Trust 1 FRN Perpetual (Pref ) 850,000 EUR 918,056 188,168 0.09

General Electric Capital Corp. FRN 15/9/2067 (Reg) 250,000 EUR 248,115 143,464 0.07

Goldman Sachs Group, Inc. (The) 5.125% 16/10/2014 1,750,000 EUR 1,706,137 1,467,544 0.72

Goldman Sachs Group, Inc. (The) 6.375%2/5/2018 "EMTN" 593,000 EUR 589,216 518,036 0.25

IntesaBci Capital Trust FRN Perpetual 750,000 EUR 874,305 632,873 0.31

Johnson & Johnson 4.75% 6/11/2019 500,000 EUR 496,683 514,615 0.25

JPMorgan Chase & Co. FRN 31/3/2018 "EMTN" 750,000 EUR 727,635 624,646 0.31

JPMorgan Chase & Co. FRN 12/11/2019 "EMTN" 750,000 EUR 757,400 610,243 0.30

JPMorgan Chase Bank NA FRN 30/11/2021 1,000,000 EUR 735,361 756,474 0.37

Kraft Foods, Inc. 5.75% 20/3/2012 1,000,000 EUR 997,849 1,006,400 0.49

Lehman Brothers Holdings, Inc. FRN 10/5/2012 "EMTN" 1,000,000 EUR 996,624 97,300 0.05

Manpower, Inc. 4.75% 14/6/2013 "EMTN" 50,000 EUR 49,795 38,834 0.02

Merrill Lynch & Co., Inc. 4.45% 31/1/2014 "EMTN" 1,500,000 EUR 1,450,251 1,242,084 0.61

Merrill Lynch & Co., Inc. 6.75% 21/5/2013 "EMTN" 450,000 EUR 448,117 417,304 0.21

Metropolitan Life Global Funding I 4.625%16/5/2017 "EMTN" 1,000,000 EUR 995,541 709,650 0.35

Morgan Stanley 3.75% 1/3/2013 "EMTN" 1,500,000 EUR 1,485,410 1,149,105 0.56

Morgan Stanley 6.5% 15/4/2011 "GMTN" 800,000 EUR 803,321 712,702 0.35

Morgan Stanley 6.5% 28/12/2018 "GMTN" 400,000 EUR 397,203 303,348 0.15

New York Life Global Funding 3.75% 19/10/2009 "GMTN" 500,000 EUR 499,625 470,030 0.23

New York Life Global Funding 4.375% 19/1/2017 "EMTN" 1,500,000 EUR 1,496,838 1,160,602 0.57

Parker Hannifin Corp. 4.125% 11/11/2015 900,000 EUR 894,308 717,053 0.35

PLD International Finance LLC 4.375% 13/4/2011 800,000 EUR 809,943 544,189 0.27

PPG Industries, Inc. 3.875% 24/6/2015 1,000,000 EUR 997,244 883,470 0.43

Procter & Gamble Co. 4.875% 11/5/2027 250,000 EUR 247,735 238,751 0.12

RBS Capital Trust C FRN Perpetual 700,000 EUR 701,159 322,984 0.16

SanPaolo IMI Capital FRN Perpetual 900,000 EUR 1,084,093 934,992 0.46




123


Schering-Plough Corp. 5.375% 1/10/2014 470,000 EUR 469,363 440,975 0.22

SG Capital Trust I LLC FRN Perpetual 850,000 EUR 1,006,788 618,681 0.30

Textron, Inc. 3.875% 11/3/2013 500,000 EUR 371,305 395,608 0.19

US Bank NA/Cincinnati OH FRN 28/2/2017 "EMTN" 1,250,000 EUR 1,139,708 1,031,912 0.51

Wachovia Bank NA 6% 23/5/2013 "EMTN" 700,000 EUR 699,847 681,476 0.34

Wachovia Corp. 4.375% 1/8/2016 2,000,000 EUR 1,765,578 1,620,871 0.80

Washington Mutual Bank/Henderson NV 4.5%17/1/2017 "GMTN" 500,000 EUR 498,846 14,948 0.01

Wells Fargo & Co. 4% 17/5/2011 "EMTN" 1,000,000 EUR 999,071 980,620 0.48

Zurich Finance USA, Inc. FRN 15/6/2025 "EMTN" 400,000 EUR 400,362 314,471 0.15

45,756,195 37,205,735 18.29

TOTAL BONDS 197,977,393 171,772,830 84.45

SECURITISED ASSETS

IRELAND

DECO Series FRN 27/7/2017 "9-E3X A1" 1,920,263 EUR 1,903,700 1,348,985 0.66

DECO Series FRN 27/1/2018 "7-E2X A2" 585,120 EUR 570,443 586,115 0.29

DECO Series FRN 27/4/2018 "2007-E6X A1" 1,921,157 EUR 1,921,157 1,306,387 0.64

Epic Drummond Ltd FRN 25/1/2022 2,332,544 EUR 2,212,728 1,832,913 0.90

European Loan Conduit FRN 15/5/2017 1,362,193 EUR 1,361,049 1,353,066 0.66

Fleet Street Finance PLC FRN 25/10/2016 972,439 EUR 972,439 873,931 0.43

German Residential Asset Note Distributor PLC FRN20/7/2016 1,772,440 EUR 1,714,753 1,408,558 0.69

Hipototta PLC FRN 30/9/2048 "4 A" 599,655 EUR 599,262 484,503 0.24

Titan Europe PLC (Ireland) FRN 23/1/2016 "2006-2X C" 881,470 EUR 882,173 734,000 0.36

Titan Europe PLC (Ireland) FRN 23/1/2016 "2006-1X A" 155,025 EUR 154,995 136,670 0.07

Titan Europe PLC (Ireland) FRN 23/4/2017 "2007-2X A1" 505,848 EUR 505,848 480,201 0.24

12,798,547 10,545,329 5.18

LUXEMBOURG

Volkswagen Car Lease FRN 21/1/2013 484,489 EUR 484,489 468,501 0.23

NETHERLANDS

E-MAC NL BV FRN 25/2/2048 "DE06-II A1" 632,650 EUR 632,650 558,190 0.27

SPAIN

Fondo de Titulizacion de Activos Santander Auto FRN25/11/2021 "1 A" 519,662 EUR 518,621 505,579 0.25

UNITED KINGDOM

Arkle Master Issuer PLC FRN 17/2/2052 "2006-2X 3A2" 650,000 EUR 650,000 591,370 0.29

Business Mortgage Finance PLC FRN 15/8/2040 "6 A2" 1,056,716 EUR 1,015,196 926,317 0.46

Gracechurch Card Funding PLC FRN 15/10/2012 2,000,000 EUR 1,967,486 1,861,600 0.92

Holmes Master Issuer PLC FRN 15/7/2040 "2007-1 3A2" 600,000 EUR 600,000 550,680 0.27

Permanent Financing PLC FRN 10/9/2032 2,000,000 EUR 1,970,367 1,987,200 0.98

Pillar Funding PLC FRN 15/11/2012 "2005-1 A" 2,000,000 EUR 1,997,993 1,855,200 0.91

8,201,042 7,772,367 3.83




124



MBNA Credit Card Master Note Trust 5.6%17/7/2014 "2002-A2 A" 1,000,000 EUR 994,309 930,300 0.46

TOTAl SECURITISED ASSETS 23,629,658 20,780,266 10.22


UNLISTED SECURITIES

BONDS


Wells Fargo & Co. 4.125% 3/11/2016 1,000,000 EUR 925,921 892,504 0.44








125



BONDS


United States Treasury Bill 0% 19/3/2009 3,000,000 USD 3,000,000 2,999,708 15.55

TOTAL BONDS 3,000,000 2,999,708 15.55

MUTUAL FUNDS

IRELAND

iShares MSCI AC Far East ex-Japan – ETF 39,939 GBP 1,204,230 967,150 5.01


iShares iBoxx $ High Yield Corporate Bond Fund – ETF 27,400 USD 1,785,934 2,069,248 10.73

iShares iBoxx Investment Grade Corporate Bond Fund – ETF 20,100 USD 1,966,547 2,039,346 10.57

Market Vectors Russia – ETF 95,500 USD 1,725,706 1,243,410 6.44

5,478,187 5,352,004 27.74

TOTAL MUTUAL FUNDS 6,682,417 6,319,154 32.75





— GLOBAL MARKET NAVIGATOR —


126



SHARES

BERMUDAMarvell Technology Group Ltd 41,852 USD 454,103 277,897 0.70VistaPrint Ltd 22,580 USD 389,242 395,827 1.00

843,345 673,724 1.70

CAYMAN ISLANDSNetease.com – ADR 23,912 USD 462,928 528,455 1.34Shanda Interactive Entertainment Ltd – ADR 19,750 USD 498,218 607,312 1.54Tencent Holdings Ltd 78,800 HKD 455,882 508,384 1.28

1,417,028 1,644,151 4.16

FINLANDNokia OYJ 60,599 EUR 845,681 948,265 2.40

FRANCECap Gemini SA 20,663 EUR 656,897 799,316 2.02UBISOFT Entertainment 20,149 EUR 443,503 388,580 0.98

1,100,400 1,187,896 3.00

GERMANYSAP AG 13,124 EUR 619,382 463,371 1.17

ISRAELCheck Point Software Technologies 21,281 USD 403,803 403,488 1.02

JAPANNintendo Co., Ltd 3,400 JPY 1,142,900 1,271,961 3.22

SOUTH KOREASamsung Electronics Co., Ltd 1,608 KRW 566,254 575,767 1.46

SWEDENTelefonaktiebolaget LM Ericsson 57,531 SEK 412,731 436,830 1.10

SWITZERLANDRoche Holding AG (Genusscheine) 2,453 CHF 331,581 377,365 0.95STMicroelectronics NV 39,402 EUR 258,387 266,903 0.68

589,968 644,268 1.63

TAIWANHTC Corp. 32,000 TWD 333,981 319,097 0.81Powertech Technology, Inc. 173,000 TWD 236,632 288,048 0.73Taiwan Semiconductor Manufacturing Co., Ltd – ADR 83,132 USD 538,380 660,899 1.67

1,108,993 1,268,044 3.21


— GLOBAL TECHNOLOGY —


127


UNITED KINGDOMARM Holdings PLC 373,607 GBP 832,679 476,379 1.20Autonomy Corp. PLC 84,496 GBP 1,154,175 1,183,605 2.99Vodafone Group PLC 295,122 GBP 560,847 599,528 1.52

2,547,701 2,259,512 5.71

UNITED STATES OF AMERICAActivision Blizzard, Inc. 36,147 USD 383,661 308,695 0.78Altera Corp. 26,281 USD 396,904 440,207 1.11Analog Devices, Inc. 8,233 USD 162,271 155,110 0.39Apple, Inc. 18,445 USD 1,747,480 1,591,619 4.03Applied Materials, Inc. 22,437 USD 212,781 227,736 0.58Automatic Data Processing, Inc. 20,460 USD 784,448 800,600 2.02CA, Inc. 20,102 USD 315,665 367,465 0.93Cisco Systems, Inc. 104,372 USD 2,191,013 1,693,958 4.28Citrix Systems, Inc. 21,941 USD 555,313 514,736 1.30First Solar, Inc. 2,745 USD 358,786 372,359 0.94Google, Inc. "A" 4,500 USD 1,555,024 1,363,995 3.45Hewlett-Packard Co. 65,389 USD 2,234,779 2,366,428 5.98Intel Corp. 118,137 USD 1,589,083 1,735,433 4.39International Business Machines Corp. 36,283 USD 2,899,610 3,031,445 7.67Intuit, Inc. 16,296 USD 372,048 384,423 0.97McAfee, Inc. 25,834 USD 746,783 869,056 2.20Microsoft Corp. 152,336 USD 3,433,120 2,946,178 7.45Oracle Corp. 95,184 USD 1,519,694 1,697,131 4.29QUALCOMM, Inc. 36,105 USD 1,103,218 1,261,509 3.19Sohu.com, Inc. 9,268 USD 415,789 428,367 1.08Starent Networks Corp. 37,641 USD 374,592 438,141 1.11Tekelec 30,630 USD 370,130 396,965 1.00Texas Instruments, Inc. 27,585 USD 419,654 418,189 1.06

24,141,846 23,809,745 60.20


UNLISTED SECURITIES

SHARES

CANADAExcapsa Software, Inc. 1,140,000 USD 1,152,669 62,700 0.16

TOTAL UNLISTED SECURITIES 1,152,669 62,700 0.16





— GLOBAL TECHNOLOGY —


128



SHARES

BERMUDA

VTech Holdings Ltd 43,000 HKD 113,062 181,986 0.58

CAYMAN ISLANDS

China Resources Land Ltd 230,000 HKD 279,323 281,934 0.90

CHINA

Anhui Conch Cement Co., Ltd "H" 158,000 HKD 479,813 726,796 2.32

Bank of China Ltd "H" 2,866,000 HKD 1,437,917 783,985 2.50

Beijing Capital International Airport Co., Ltd "H" 1,024,000 HKD 563,561 513,979 1.64

Byd Co., Ltd "H" 78,500 HKD 113,025 128,638 0.41

China Coal Energy Co. "H" 818,000 HKD 1,949,896 651,230 2.07

China Construction Bank Corp. "H" 2,577,000 HKD 1,378,983 1,413,186 4.50

China Life Insurance Co., Ltd "H" 210,000 HKD 189,329 638,125 2.03

China Petroleum & Chemical Corp. "H" 1,204,000 HKD 1,588,685 728,610 2.32

China Shipping Container Lines Co., Ltd "H" 2,002,000 HKD 409,927 302,236 0.96

China Shipping Development Co., Ltd "H" 242,000 HKD 638,987 240,437 0.77

CHT Holdings Ltd (China) 1,393,000 SGD 664,207 67,878 0.22

Ctrip.com International Ltd – ADR 10,400 USD 390,858 232,336 0.74

Focus Media Holding Ltd – ADR 20,300 USD 508,413 178,640 0.57

Travelsky Technology Ltd 1,234,000 HKD 411,246 541,365 1.72

10,724,847 7,147,441 22.77

HONG KONG

AAC Acoustic Technologies Holdings, Inc. 1,494,000 HKD 754,623 670,850 2.14

Bank of East Asia Ltd 50,200 HKD 201,861 104,934 0.33

BOC Hong Kong Holdings Ltd 433,000 HKD 1,032,203 490,544 1.56

Cheung Kong Holdings Ltd 58,000 HKD 699,268 548,565 1.75

Cheung Kong Infrastructure Holdings Ltd 154,000 HKD 577,247 579,235 1.85


China Power International Development Ltd 1,633,000 HKD 509,512 337,134 1.07

China Resources Power Holdings Co. 168,000 HKD 579,893 322,992 1.03

China Unicom Ltd 992,572 HKD 1,428,684 1,191,080 3.80

CLP Holdings Ltd 102,500 HKD 798,267 695,674 2.22

CNOOC Ltd 1,465,000 HKD 2,219,048 1,368,586 4.36

Esprit Holdings Ltd 144,800 HKD 1,383,478 820,217 2.61

Franshion Properties China Ltd 1,726,000 HKD 285,475 467,688 1.49

GOME Electrical Appliances Holdings Ltd 2,726,000 HKD 1,329,422 295,461 0.94

Hong Kong Exchanges and Clearing Ltd 15,700 HKD 465,768 149,098 0.47

Huabao International Holdings Ltd 535,000 HKD 272,746 350,682 1.12

Industrial and Commercial Bank of China Asia Ltd 183,365 HKD 475,037 196,377 0.63

Kerry Properties Ltd 297,776 HKD 1,118,903 793,425 2.53

Kowloon Development Co., Ltd 186,000 HKD 328,571 70,080 0.22

Li & Fung Ltd 104,000 HKD 375,996 178,208 0.57


— GREATER CHINA EQUITY —


129


Link REIT (The) – REIT 204,000 HKD 499,000 336,927 1.07

NWS Holdings Ltd 516,073 HKD 1,223,249 768,445 2.45

Sun Hung Kai Properties Ltd 98,000 HKD 667,545 816,873 2.60

Swire Pacific Ltd "A" 42,500 HKD 484,009 292,563 0.93

Techtronic Industries Co. 387,500 HKD 518,939 77,000 0.25

Varitronix International Ltd 716,000 HKD 482,271 191,239 0.61

Wharf Holdings Ltd 352,000 HKD 1,625,978 965,156 3.08

21,886,633 15,267,459 48.65

TAIWAN

Acer, Inc. 326,844 TWD 602,610 424,596 1.35

Advanced Semiconductor Engineering, Inc. 1,551,668 TWD 1,740,203 558,350 1.78


Chi Mei Optoelectronics Corp. 10,550 TWD 14,379 3,475 0.01

China Life Insurance Co., Ltd (Taiwan) 1,563,270 TWD 1,174,501 569,675 1.82

Chinatrust Financial Holding Co., Ltd 1,628,000 TWD 602,088 690,072 2.20

Delta Electronics, Inc. 401,000 TWD 1,028,607 776,504 2.47

Far Eastern Textile Co., Ltd 1,218,924 TWD 1,255,432 780,587 2.49

HON HAI Precision Industry Co., Ltd 558,615 TWD 1,608,896 1,093,637 3.48

HTC Corp. 59,000 TWD 536,105 588,336 1.88

MediaTek, Inc. 43,000 TWD 255,873 289,136 0.92


U-Ming Marine Transport Corp. 282,000 TWD 667,740 337,961 1.08

Yuanta Financial Holding Co., Ltd 790,000 TWD 509,186 354,135 1.13

12,863,181 8,037,139 25.61


UNLISTED SECURITIES

SHARES

HONG KONG

Euro-Asia Agricultural Holdings Co., Ltd 562,000 HKD 115,340 — 0.00

TOTAL UNLISTED SECURITIES 115,340 — 0.00





— GREATER CHINA EQUITY —


130



SHARES

CHINA

CHT Holdings Ltd (China) 97,000 SGD 45,903 4,727 0.00

HONG KONG


Bank of East Asia Ltd 2,981,682 HKD 14,975,995 6,232,642 1.37

BOC Hong Kong Holdings Ltd 13,682,500 HKD 32,211,446 15,500,862 3.40

Champion REIT 14,016,000 HKD 5,365,768 3,761,693 0.83

Cheung Kong Holdings Ltd 2,973,000 HKD 53,080,174 28,118,669 6.18

Cheung Kong Infrastructure Holdings Ltd 2,661,000 HKD 9,914,560 10,008,738 2.20


CLP Holdings Ltd 5,076,000 HKD 37,356,465 34,451,111 7.57

Esprit Holdings Ltd 3,380,300 HKD 44,854,404 19,147,657 4.21

GOME Electrical Appliances Holdings Ltd 32,963,000 HKD 15,448,225 3,572,744 0.78

Hang Lung Properties Ltd 2,045,000 HKD 4,685,410 4,443,562 0.98

Hang Seng Bank Ltd 2,860,100 HKD 53,806,342 37,531,683 8.24


Hong Kong & China Gas Co., Ltd 11,534,483 HKD 29,817,109 17,413,251 3.83

Hong Kong Exchanges and Clearing Ltd 2,231,500 HKD 59,560,440 21,191,933 4.66

HongKong Electric Holdings 1,267,000 HKD 7,580,282 7,111,509 1.56

Hutchison Whampoa Ltd 7,077,137 HKD 80,679,104 35,476,805 7.79

Industrial and Commercial Bank of China Asia Ltd 2,000,788 HKD 5,183,407 2,142,767 0.47

Kerry Properties Ltd 5,976,278 HKD 35,172,992 15,923,800 3.50

Kingboard Chemical Holdings Ltd 2,028,000 HKD 11,079,895 3,637,296 0.80

Kowloon Development Co., Ltd 2,737,000 HKD 6,447,601 1,031,225 0.23

Li & Fung Ltd 7,207,400 HKD 25,831,096 12,350,160 2.71

Link REIT (The) – REIT 10,378,500 HKD 23,495,307 17,141,169 3.77

MTR Corp. 3,987,001 HKD 11,819,034 9,239,502 2.03

New World Development Ltd 6,817,000 HKD 17,321,224 6,913,719 1.52

NWS Holdings Ltd 11,629,373 HKD 30,982,329 17,316,415 3.80

Shun Tak Holdings Ltd 8,982,000 HKD 13,605,497 2,468,587 0.54

Sun Hung Kai Properties Ltd 4,754,340 HKD 84,156,321 39,629,503 8.71

Swire Pacific Ltd "A" 2,806,500 HKD 36,948,129 19,319,476 4.24

Television Broadcasts Ltd 732,000 HKD 2,226,786 2,384,890 0.52


Yue Yuen Industrial Holdings Ltd 2,586,000 HKD 8,242,386 5,111,910 1.12

850,609,308 444,834,689 97.72





— HONG KONG EQUITY —


131



SHARES

INDIA

Aban Offshore Ltd 27,771 INR 1,244,175 384,936 0.74

ACC Ltd 91,028 INR 1,385,850 902,200 1.74

Bharat Heavy Electricals Ltd 83,182 INR 3,013,101 2,339,639 4.52

Bharat Petroleum Corp., Ltd 210,429 INR 1,452,030 1,633,654 3.15


Cairn India Ltd 398,132 INR 1,694,930 1,413,946 2.73

Dr Reddys Laboratories Ltd 156,719 INR 2,249,567 1,516,077 2.93

GAIL India Ltd 388,517 INR 2,360,921 1,654,075 3.19

HDFC Bank Ltd 131,151 INR 3,279,888 2,702,748 5.22

Hindustan Unilever Ltd 623,071 INR 3,348,934 3,219,211 6.21

Housing Development Finance Corp. 69,124 INR 4,355,205 2,120,878 4.09

ICICI Bank Ltd 314,403 INR 6,244,813 2,908,123 5.61

Infosys Technologies Ltd 173,375 INR 6,893,313 3,991,974 7.71

ITC Ltd 840,405 INR 3,906,353 2,978,585 5.75

IVRCL Infrastructures & Projects Ltd 268,164 INR 784,293 795,718 1.54

Larsen & Toubro Ltd 88,883 INR 2,390,573 1,419,615 2.74

Mahindra & Mahindra Ltd 71,221 INR 944,339 403,554 0.78

Maruti Suzuki India Ltd 101,988 INR 1,985,506 1,095,142 2.11

NTPC Ltd 209,610 INR 929,384 781,413 1.51

Oil & Natural Gas Corp., Ltd 161,417 INR 3,403,579 2,222,754 4.29


Satyam Computer Services Ltd (Demat Shares) 149,925 INR 1,478,797 528,583 1.02

State Bank of India Ltd 69,848 INR 2,872,301 1,858,192 3.59

Sterlite Industries India Ltd 222,273 INR 1,151,847 1,193,378 2.30

Tata Chemicals Ltd 151,637 INR 1,006,600 517,247 1.00

Tata Consultancy Services Ltd 75,836 INR 1,388,257 748,107 1.44


Zee Entertainment Enterprises Ltd 338,415 INR 1,495,272 976,929 1.89





— INDIA EQUITY —


132



SHARES & WARRANTS

INDONESIA

Adaro Energy PT 3,970,000 IDR 638,280 176,242 0.97

AKR Corporindo Tbk PT 4,412,500 IDR 476,014 290,801 1.61

Astra Agro Lestari Tbk PT 197,500 IDR 213,379 177,162 0.98

Bakrie and Brothers Tbk PT 11,709,750 IDR 567,501 53,592 0.30

Bakrieland Development Tbk PT 3,040,000 IDR 123,721 20,035 0.11

Bank Central Asia Tbk PT 3,940,000 IDR 1,191,691 1,172,081 6.48

Bank Danamon Indonesia Tbk PT 1,894,000 IDR 1,291,035 537,427 2.97

Bank Mandiri Persero Tbk PT 7,332,000 IDR 2,216,958 1,359,019 7.52

Bank Negara Indonesia Persero Tbk PT 3,151,000 IDR 431,563 196,126 1.08

Bank Niaga Tbk PT 1,450,000 IDR 48,503 65,698 0.36

Bank Pan Indonesia Tbk PT 791,000 IDR 66,393 41,994 0.23

Bank Permata Tbk PT 1,885,000 IDR 164,482 84,545 0.47

Bank Rakyat Indonesia 3,984,000 IDR 2,370,654 1,668,355 9.23

Berlian Laju Tanker Tbk PT 888,500 IDR 205,369 47,170 0.26

Bisi International PT 308,000 IDR 47,164 51,310 0.28

Bumi Resources Tbk PT 5,212,000 IDR 1,196,641 434,134 2.40

Central Proteinaprima Tbk PT 42,093,500 IDR 934,474 215,765 1.19

Ciputra Development Tbk PT 15,941,875 IDR 601,330 268,494 1.48

First Resources Ltd 444,000 SGD 352,604 97,358 0.54

Gudang Garam Tbk PT 363,000 IDR 227,188 141,213 0.78

Hexindo Adiperkasa Tbk PT 3,984,000 IDR 346,489 251,621 1.39

Indah Kiat Pulp and Paper Corporation Tbk PT 1,186,000 IDR 298,362 80,333 0.44

Indika Energy Tbk PT 338,000 IDR 103,682 33,723 0.19

Indo Tambangraya Megah PT 206,500 IDR 420,482 198,467 1.10

Indocement Tunggal Prakarsa Tbk PT 1,324,000 IDR 724,291 557,473 3.08

Indofood Sukses Makmur Tbk PT 3,692,000 IDR 487,707 314,284 1.74

Indosat Tbk PT 1,114,000 IDR 715,989 586,315 3.24

International Nickel Indonesia Tbk PT 1,164,500 IDR 605,866 205,719 1.14

Jasa Marga PT 1,512,500 IDR 98,035 125,984 0.70

Kalbe Farma Tbk PT 1,956,000 IDR 242,355 71,616 0.40

Medco Energi Internasional Tbk PT 1,897,500 IDR 721,730 324,789 1.80

Media Nusantara Citra MNC PT 11,409,500 IDR 623,939 160,829 0.89

Mitra Adiperkasa Tbk PT 10,890,500 IDR 766,376 358,863 1.98

Perusahaan Gas Negara PT 4,198,500 IDR 893,558 714,801 3.95

Perusahaan Perkebunan London Sumatra Indonesia Tbk PT 1,098,000 IDR 863,346 293,972 1.63


Ramayana Lestari Sentosa Tbk PT 3,236,500 IDR 236,975 148,123 0.82

Semen Gresik Persero Tbk PT 1,469,500 IDR 659,110 561,570 3.11

Summarecon Agung Tbk PT (Call Warrants 21/6/2010) 50,466 IDR — 92 0.00

Tambang Batubara Bukit Asam Tbk PT 859,500 IDR 651,146 542,842 3.00

Telekomunikasi Indonesia Tbk PT 2,624,000 IDR 2,547,668 1,657,261 9.17

Timah Tbk PT 924,500 IDR 176,385 91,392 0.51


— INDONESIA EQUITY —


133


Truba Alam Manunggal Engineering PT 3,182,000 IDR 367,060 14,563 0.08

Unilever Indonesia Tbk PT 1,037,500 IDR 750,778 740,731 4.10

United Tractors Tbk PT 1,280,250 IDR 1,092,734 515,615 2.85


UNLISTED SECURITIES

BONDS

INDONESIA

Bhakti Investama Tbk PT 6% 20/7/2010 69,851 USD 69,851 41,077 0.23






— INDONESIA EQUITY —


134



SHARES

JAPAN

Advantest Corp. 4,800 JPY 99,985 76,085 2.21

Ajinomoto Co., Inc. 13,000 JPY 144,445 139,921 4.06

Arrk Corp. 15,900 JPY 152,373 22,207 0.64

Asahi Kasei Corp. 22,000 JPY 115,832 95,106 2.76

Bridgestone Corp. 6,100 JPY 109,478 89,727 2.60

Chiyoda Corp. 10,000 JPY 59,751 54,204 1.57

Credit Saison Co., Ltd 9,900 JPY 155,895 133,551 3.87

Creed Office Investment Corp. – REIT 13 JPY 28,835 13,401 0.39

Daiichi Sankyo Co., Ltd 2,300 JPY 42,192 53,539 1.55

Denso Corp. 2,900 JPY 48,779 47,254 1.37

Ebara Corp. 19,000 JPY 79,064 43,175 1.25

Fuji Heavy Industries Ltd 14,000 JPY 76,804 37,089 1.08

Fuji Television Network, Inc. 69 JPY 153,506 97,976 2.84

FUJIFILM Holdings Corp. 1,300 JPY 38,163 28,100 0.81

Fujitsu Ltd 10,000 JPY 62,761 47,553 1.38

Funai Electric Co., Ltd 1,400 JPY 21,937 28,476 0.83

JS Group Corp. 5,100 JPY 101,442 78,014 2.26

Kaneka Corp. 24,000 JPY 183,771 151,638 4.39

Keyence Corp. 200 JPY 43,876 40,348 1.17

Koei Co., Ltd 2,900 JPY 50,118 30,185 0.87

Komeri Co., Ltd 1,900 JPY 58,600 45,702 1.32

Lintec Corp. 3,300 JPY 67,075 45,029 1.30

Meitec Corp. 1,500 JPY 47,879 25,639 0.74

Mitsubishi Corp. 6,100 JPY 62,901 83,709 2.43

Mitsubishi UFJ Financial Group, Inc. 36,000 JPY 392,599 219,077 6.35

NEC Corp. 29,000 JPY 155,390 95,472 2.77

New Japan Radio Co., Ltd 7,000 JPY 49,025 13,268 0.38

Nippon Oil Corp. 9,000 JPY 38,266 44,593 1.29

Nissan Motor Co., Ltd 15,600 JPY 147,943 55,334 1.60

NOK Corp. 6,800 JPY 135,544 47,260 1.37

NTT DoCoMo, Inc. 59 JPY 87,500 115,364 3.34

Obic Co., Ltd 530 JPY 109,891 85,714 2.48

Onward Holdings Co., Ltd 7,000 JPY 94,945 54,780 1.59

ORIX Corp. 1,020 JPY 120,009 56,419 1.64

Rohm Co., Ltd 2,800 JPY 217,406 139,666 4.05

Seven & I Holdings Co., Ltd 3,100 JPY 98,628 104,805 3.04

Sompo Japan Insurance, Inc. 12,000 JPY 138,095 85,795 2.49

Sony Corp. 5,000 JPY 170,780 106,523 3.09

Sumisho Computer Systems Corp. 7,600 JPY 133,494 124,680 3.61

Sumitomo Forestry Co., Ltd 13,200 JPY 126,073 105,934 3.07

Sumitomo Mitsui Financial Group, Inc. 45 JPY 361,947 187,552 5.44

Sumitomo Trust & Banking Co., Ltd (The) 13,000 JPY 86,666 74,356 2.15


— JAPAN DYNAMIC —


135


Thine Electronics, Inc. 23 JPY 45,014 12,620 0.37

Toppan Forms Co., Ltd 5,900 JPY 77,185 74,751 2.17

United Arrows Ltd 6,500 JPY 44,705 49,715 1.44

Yamaha Motor Co., Ltd 7,400 JPY 96,651 76,448 2.22





— JAPAN DYNAMIC —


136



SHARES

JAPAN

Advantest Corp. 154,900 JPY 3,441,607 2,455,323 0.57

Aeon Co., Ltd 189,700 JPY 3,640,880 1,875,657 0.43

Ajinomoto Co., Inc. 401,000 JPY 4,519,199 4,316,034 1.00

Asahi Glass Co., Ltd 310,000 JPY 3,105,852 1,731,863 0.40

Asahi Kasei Corp. 1,172,000 JPY 7,085,601 5,066,563 1.17

Astellas Pharma, Inc. 72,900 JPY 3,131,058 2,933,292 0.68

Bridgestone Corp. 482,100 JPY 9,795,963 7,091,356 1.64

Canon, Inc. 318,200 JPY 15,978,542 9,770,148 2.25

Dai Nippon Printing Co., Ltd 182,000 JPY 2,780,081 1,975,037 0.46

Daiichi Sankyo Co., Ltd 436,900 JPY 12,436,149 10,170,038 2.35

Daikin Industries Ltd 63,900 JPY 1,518,616 1,639,733 0.38

Daiwa House Industry Co., Ltd 140,000 JPY 1,867,131 1,342,349 0.31

Denso Corp. 139,400 JPY 4,624,955 2,271,440 0.52

East Japan Railway Co. 225 JPY 1,670,971 1,718,395 0.40

Ebara Corp. 508,000 JPY 2,156,922 1,154,353 0.27

Fuji Television Network, Inc. 2,192 JPY 4,520,124 3,112,511 0.72

FUJIFILM Holdings Corp. 248,800 JPY 9,451,451 5,377,819 1.24

Fujitsu Ltd 982,000 JPY 7,524,180 4,669,711 1.08

Hitachi Ltd 612,000 JPY 4,013,244 2,340,409 0.54

Honda Motor Co., Ltd 465,600 JPY 15,661,284 9,836,874 2.27

HOYA Corp. 120,500 JPY 3,943,980 2,058,311 0.47

ITOCHU Corp. 432,000 JPY 2,061,926 2,121,332 0.49

JFE Holdings, Inc. 30,900 JPY 1,524,353 799,773 0.18

JS Group Corp. 306,100 JPY 5,256,487 4,682,347 1.08

Kaneka Corp. 618,000 JPY 4,835,366 3,904,672 0.90

Kansai Electric Power Co., Inc. (The) 121,200 JPY 2,896,490 3,492,989 0.81

Kao Corp. 61,000 JPY 1,730,012 1,832,400 0.42

Keyence Corp. 17,400 JPY 3,783,250 3,510,281 0.81

Kobe Steel Ltd 811,000 JPY 2,899,661 1,456,321 0.34

Kubota Corp. 271,000 JPY 1,641,337 1,904,495 0.44

Kyocera Corp. 71,400 JPY 6,207,798 5,049,404 1.16

Marubeni Corp. 226,000 JPY 1,527,271 841,722 0.19

Matsushita Electric Industrial Co., Ltd 306,000 JPY 6,256,197 3,775,181 0.87

Mitsubishi Chemical Holdings Corp. 363,500 JPY 1,381,588 1,583,500 0.36

Mitsubishi Corp. 440,600 JPY 10,186,067 6,046,254 1.39

Mitsubishi Estate Co., Ltd 400,000 JPY 7,893,997 6,415,784 1.48

Mitsubishi Heavy Industries Ltd 876,000 JPY 4,327,174 3,835,504 0.88

Mitsubishi UFJ Financial Group, Inc. 4,368,800 JPY 47,628,051 26,586,167 6.13

Mitsui & Co., Ltd 508,000 JPY 5,817,265 5,073,524 1.17

Mitsui OSK Lines Ltd 315,000 JPY 1,433,470 1,892,479 0.44

Mitsui Sumitomo Insurance Group Holdings, Inc. 120,500 JPY 4,771,206 3,719,919 0.86

Mizuho Financial Group, Inc. 4,168 JPY 27,971,229 11,905,931 2.75


— JAPAN EQUITY —


137


Murata Manufacturing Co., Ltd 108,800 JPY 7,159,031 4,208,967 0.97

NEC Corp. 2,558,000 JPY 13,395,516 8,421,282 1.94

Nidec Corp. 27,100 JPY 1,831,820 1,033,354 0.24

Nikon Corp. 102,000 JPY 963,351 1,196,209 0.28

Nintendo Co., Ltd 5,700 JPY 1,969,345 2,132,406 0.49

Nippon Oil Corp. 400,000 JPY 3,056,938 1,981,932 0.46

Nippon Steel Corp. 1,619,000 JPY 8,392,625 5,204,345 1.20

Nippon Telegraph & Telephone Corp. 3,633 JPY 17,338,765 18,846,577 4.35

Nissan Motor Co., Ltd 1,527,100 JPY 16,590,160 5,416,749 1.25

Nitto Denko Corp. 51,500 JPY 980,600 973,885 0.22

Nomura Holdings, Inc. 831,800 JPY 15,088,263 6,721,523 1.55

NTT DoCoMo, Inc. 8,778 JPY 13,379,510 17,163,876 3.96

Obic Co., Ltd 17,600 JPY 3,541,016 2,846,356 0.66

Onward Holdings Co., Ltd 355,000 JPY 4,189,503 2,778,141 0.64

ORIX Corp. 99,240 JPY 12,875,365 5,489,193 1.27

Resona Holdings, Inc. 1,673 JPY 3,867,069 2,486,829 0.57

Rohm Co., Ltd 174,700 JPY 13,972,811 8,714,182 2.01

Secom Co., Ltd 99,000 JPY 4,903,916 5,047,941 1.16

Sekisui House Ltd 132,000 JPY 1,803,025 1,138,347 0.26

Seven & I Holdings Co., Ltd 449,900 JPY 13,776,571 15,210,275 3.51

Sharp Corp. 278,000 JPY 4,053,018 1,959,851 0.45

SMC Corp. (Japan) 67,300 JPY 8,826,093 6,788,560 1.57

Sompo Japan Insurance, Inc. 897,000 JPY 10,339,408 6,413,179 1.48

Sony Corp. 510,000 JPY 22,259,392 10,865,376 2.51

Sumisho Computer Systems Corp. 168,100 JPY 3,409,149 2,757,723 0.64

Sumitomo Bakelite Co., Ltd 413,000 JPY 2,924,221 1,648,063 0.38

Sumitomo Chemical Co., Ltd 399,000 JPY 3,062,671 1,335,676 0.31

Sumitomo Corp. 348,200 JPY 3,735,424 3,010,541 0.69

Sumitomo Electric Industries Ltd 662,600 JPY 9,529,975 5,009,069 1.16

Sumitomo Forestry Co., Ltd 351,000 JPY 3,109,793 2,816,871 0.65

Sumitomo Mitsui Financial Group, Inc. 3,411 JPY 31,974,879 14,216,438 3.28

Sumitomo Trust & Banking Co., Ltd (The) 1,123,000 JPY 8,882,805 6,423,189 1.48

T&D Holdings, Inc. 76,700 JPY 5,182,098 3,145,707 0.73

Takeda Pharmaceutical Co., Ltd 193,700 JPY 12,162,743 9,962,511 2.30

Tokio Marine Holdings, Inc. 80,900 JPY 3,084,238 2,313,606 0.53

Tokyo Electric Power Co., Inc. (The) 321,200 JPY 8,715,599 10,681,150 2.46

Tokyo Electron Ltd 42,900 JPY 2,884,094 1,474,145 0.34

Tokyo Gas Co., Ltd 648,000 JPY 3,070,487 3,268,192 0.75

Toyota Motor Corp. 601,200 JPY 33,697,548 19,359,152 4.47

West Japan Railway Co. 1,926 JPY 8,722,142 8,731,740 2.01

Yahoo! Japan Corp. 4,220 JPY 1,693,842 1,707,366 0.39

Yamato Holdings Co., Ltd 203,000 JPY 3,139,440 2,610,209 0.60





— JAPAN EQUITY —


138



SHARES

JAPAN

Ai Holdings Corp. 92,500 JPY 428,020 297,345 3.15

Ando Corp. 185,000 JPY 280,190 299,396 3.18

Arrk Corp. 103,000 JPY 341,985 143,856 1.53

Axell Corp. 89 JPY 309,686 302,865 3.21

Bank of Okinawa Ltd (The) 7,900 JPY 288,026 319,625 3.39

Bunka Shutter Co., Ltd 76,000 JPY 244,415 326,864 3.47

Creed Office Investment Corp. – REIT 133 JPY 358,389 137,106 1.45

Daiichikosho Co., Ltd 30,800 JPY 279,996 316,143 3.35

Ebara Corp. 57,000 JPY 180,325 129,524 1.37

Future Architect, Inc. 558 JPY 328,764 216,483 2.30

Geo Corp. 344 JPY 274,029 279,120 2.96

Hikari Tsushin, Inc. 5,900 JPY 181,002 110,263 1.17

Iriso Electronics Co., Ltd 27,100 JPY 312,548 144,489 1.53

Jaccs Co., Ltd 151,000 JPY 451,173 281,195 2.98

Kadokawa Group Holdings, Inc. 5,900 JPY 142,445 136,685 1.45

Koa Corp. 36,100 JPY 264,194 203,679 2.16

Koei Co., Ltd 20,200 JPY 316,036 210,251 2.23

Komeri Co., Ltd 11,400 JPY 280,926 274,211 2.91

Lintec Corp. 12,500 JPY 176,270 170,565 1.81

Maeda Corp. 56,000 JPY 153,833 223,466 2.37

MEC Co., Ltd (Japan) 34,300 JPY 285,554 107,978 1.15

Meitec Corp. 11,800 JPY 347,540 201,691 2.14

Miraial Co., Ltd 11,300 JPY 338,401 107,470 1.14

Miyachi Corp. 19,100 JPY 185,344 102,471 1.09

Nippon Thompson Co., Ltd 42,000 JPY 179,392 174,117 1.85

Nissan Chemical Industries Ltd 17,000 JPY 186,391 161,115 1.71

Pal Co., Ltd 26,050 JPY 374,949 250,350 2.66

Pocket Card Co., Ltd 120,600 JPY 339,558 340,886 3.62

Sato Corp. 27,100 JPY 329,143 303,998 3.22

Sumisho Computer Systems Corp. 20,800 JPY 381,437 341,229 3.62

Sumitomo Bakelite Co., Ltd 32,000 JPY 170,149 127,695 1.35

Sumitomo Forestry Co., Ltd 44,900 JPY 305,740 360,335 3.82

Thine Electronics, Inc. 344 JPY 393,809 188,749 2.00

Tokyo Tomin Bank Ltd (The) 20,600 JPY 434,045 327,673 3.48

Toppan Forms Co., Ltd 27,300 JPY 277,611 345,884 3.67

Toyo Tire & Rubber Co., Ltd 112,000 JPY 346,099 201,119 2.13

Tsumura & Co. 8,700 JPY 208,011 321,133 3.41

United Arrows Ltd 42,100 JPY 268,895 321,997 3.41


— JAPAN SMALLER COMPANIES —


139


USJ Co., Ltd 425 JPY 284,364 155,462 1.65

Wood One Co., Ltd 35,000 JPY 217,727 126,088 1.34

Zuken, Inc. 29,500 JPY 293,933 192,601 2.04





— JAPAN SMALLER COMPANIES —


140



SHARES

SOUTH KOREA

Amorepacific Corp. 68 KRW 44,563 35,308 1.84

Cheil Industries, Inc. 550 KRW 22,141 17,554 0.91

Daeduck Electronics Co. 5,450 KRW 47,910 14,798 0.77

DC Chemical Co., Ltd 47 KRW 6,071 8,209 0.43

Dong-A Pharmaceutical Co., Ltd 443 KRW 36,274 33,237 1.73

Doosan Heavy Industries and Construction Co., Ltd 160 KRW 5,977 7,990 0.42

GS Engineering & Construction Corp. 215 KRW 16,606 9,900 0.52

GS Holdings Corp. 1,196 KRW 42,239 25,543 1.33

GS Home Shopping, Inc. 490 KRW 32,368 18,615 0.97

Hana Financial Group, Inc. 676 KRW 31,938 10,466 0.55

Handsome Co., Ltd 1,524 KRW 26,278 9,498 0.49

Hanjin Shipping Co., Ltd 1,100 KRW 14,119 15,807 0.82

Hankook Tire Co., Ltd 4,040 KRW 63,672 49,075 2.56

Hanwha Corp. 309 KRW 14,475 4,723 0.25

Hite Brewery Co., Ltd 248 KRW 46,771 32,586 1.70

Hite Brewery Co., Ltd 309 KRW 19,876 4,023 0.21

Honam Petrochemical Corp. 410 KRW 13,680 16,829 0.88

Hynix Semiconductor, Inc. 1,280 KRW 26,373 6,809 0.35

Hyundai Development Co. 240 KRW 8,719 6,183 0.32

Hyundai Engineering & Construction Co., Ltd 401 KRW 17,575 18,179 0.95

Hyundai Heavy Industries 230 KRW 41,503 36,430 1.90

Hyundai Mobis 437 KRW 29,286 21,892 1.14

Hyundai Motor Co. 1,084 KRW 69,054 33,995 1.77

Hyundai Motor Co. (Pref ) 490 KRW 20,648 5,310 0.28

Industrial Bank Of Korea 530 KRW 9,762 3,236 0.17

Kangwon Land, Inc. 3,000 KRW 39,311 32,512 1.69

KB Financial Group, Inc. 3,967 KRW 201,488 106,139 5.53

KCC Corp. 34 KRW 9,549 7,761 0.40

Korea Electric Power Corp. 4,550 KRW 188,975 106,927 5.57

Korean Air Lines Co., Ltd 180 KRW 4,429 5,431 0.28

KT Corp. – ADR 1,900 USD 48,989 27,474 1.43

KT Freetel Co., Ltd 500 KRW 12,679 12,465 0.65

KT&G Corp. 729 KRW 50,328 45,781 2.39

LG Chem Ltd 567 KRW 32,537 31,961 1.67

LG Corp. 268 KRW 17,675 9,085 0.47

LG Display Co., Ltd 3,050 KRW 96,002 50,851 2.65

LG Electronics, Inc. 1,053 KRW 72,194 62,534 3.26

LG Household & Health Care Ltd 33 KRW 7,070 4,978 0.26

LG Telecom Ltd 1,541 KRW 14,234 12,149 0.63

Lotte Shopping Co., Ltd 118 KRW 40,220 19,674 1.03

Macquarie Korea Infrastructure Fund 7,175 KRW 51,364 27,343 1.43

NCSoft Corp. 320 KRW 22,692 13,364 0.70


— KOREA EQUITY —


141


POSCO 386 KRW 120,544 116,454 6.07

S1 Corp. (Korea) 981 KRW 45,117 42,058 2.19

Samsung C&T Corp. 440 KRW 15,359 13,868 0.72

Samsung Electronics Co., Ltd 466 KRW 282,648 166,858 8.70

Samsung Fire & Marine Insurance Co., Ltd 420 KRW 66,359 62,856 3.28

Samsung SDI Co., Ltd 174 KRW 12,899 7,598 0.40

Shinhan Financial Group Co., Ltd 2,309 KRW 99,985 54,446 2.84

Shinsegae Co., Ltd 289 KRW 162,010 110,593 5.77

SK Energy Co., Ltd 997 KRW 52,253 59,604 3.11

SK Holdings Co., Ltd 110 KRW 8,236 8,253 0.43

SK Telecom Co., Ltd 86 KRW 16,768 14,270 0.74

SK Telecom Co., Ltd – ADR 4,200 USD 94,203 74,886 3.90

S-Oil Corp. 267 KRW 22,288 13,037 0.68

Woori Finance Holdings Co., Ltd 820 KRW 18,434 4,134 0.22

Woori Investment & Securities Co., Ltd 3,540 KRW 44,922 35,272 1.84





— KOREA EQUITY —


142



SHARES

BERMUDA

Dufry South America Ltd – BDR 227,000 BRL 4,312,949 1,604,990 2.01

BRAZIL

All America Latina Logistica SA – Unit 337,400 BRL 4,018,196 1,447,553 1.81

Anhanguera Educacional Participacoes SA – Unit 256,800 BRL 4,591,876 1,334,223 1.67

Banco Bradesco SA (Pref ) 478,500 BRL 10,574,929 4,637,539 5.81

Banco do Brasil SA 322,700 BRL 5,144,990 2,032,424 2.54

BM&FBOVESPA SA 456,666 BRL 4,143,798 1,179,464 1.48

Cia de Concessoes Rodoviarias 184,400 BRL 3,152,297 1,869,451 2.34

Cia Energetica de Sao Paulo "B" (Pref ) 130,800 BRL 2,055,890 846,811 1.06

Cia Vale do Rio Doce (Pref ) 712,400 BRL 21,359,004 7,301,791 9.14

Diagnosticos da America SA 96,500 BRL 2,119,867 930,707 1.17

Gafisa SA 212,700 BRL 4,356,408 957,265 1.20

Gerdau SA (Pref ) 392,400 BRL 8,019,552 2,535,382 3.17

Investimentos Itau SA (Pref ) 772,500 BRL 4,675,041 2,654,730 3.32

JBS SA 593,400 BRL 3,090,321 1,255,116 1.57

Localiza Rent A CAR 273,600 BRL 3,095,114 833,420 1.04

Lojas Americanas SA (Pref ) 493,100 BRL 3,353,987 1,326,453 1.66

Lojas Renner SA 162,800 BRL 3,544,793 1,094,492 1.37

LPS Brasil Consultoria de Imoveis SA 171,500 BRL 2,975,994 485,621 0.61

Lupatech SA 88,000 BRL 3,239,273 883,840 1.11

PDG Realty SA Empreendimentos e Participacoes 233,700 BRL 3,059,593 1,117,951 1.40

Perdigao SA 160,100 BRL 4,212,889 2,042,780 2.56

Petroleo Brasileiro SA (Pref ) 700,800 BRL 16,340,087 6,867,198 8.60

Santos Brasil Participacoes SA – Unit 192,600 BRL 3,304,396 528,842 0.66

SLC Agricola SA 212,600 BRL 4,046,913 1,276,970 1.60

Sul America SA – Unit 260,600 BRL 4,457,604 1,788,891 2.24

Usinas Siderurgicas de Minas Gerais SA "A" (Pref ) 127,200 BRL 6,159,175 1,447,271 1.81

Vivo Participacoes SA (Pref ) 114,950 BRL 3,096,756 1,392,718 1.74

138,188,743 50,068,903 62.68

CHILE

Banco Santander Chile SA 59,182,403 CLP 2,992,931 1,888,123 2.36

Centros Comerciales Sudamericanos SA 400,129 CLP 1,696,129 563,975 0.70

SACI Falabella 367,720 CLP 2,011,904 955,700 1.20

6,700,964 3,407,798 4.26

MEXICO

America Movil SAB de CV "L" 4,886,000 MXN 14,165,794 7,366,251 9.22

Corp GEO SAB de CV "B" 1,016,500 MXN 3,205,323 1,158,233 1.45

Desarrolladora Homex SAB de CV 335,500 MXN 2,863,476 1,207,507 1.51

Empresas ICA SAB de CV 776,400 MXN 4,419,857 1,319,935 1.65

Fomento Economico Mexicano SAB de CV – Unit 1,171,500 MXN 5,120,090 3,487,273 4.37


— LATIN AMERICAN EQUITY —


143


Grupo Famsa SAB de CV "A" 602,800 MXN 1,987,235 379,540 0.48

Grupo Financiero Banorte SAB de CV 1,165,000 MXN 5,122,780 2,066,033 2.59

Grupo Televisa SA 712,200 MXN 2,272,924 2,072,464 2.59

Wal-Mart de Mexico SAB de CV "V" 826,900 MXN 2,289,200 2,254,307 2.82

41,446,679 21,311,543 26.68





— LATIN AMERICAN EQUITY —


144



SHARES

MALAYSIAAlliance Financial Group BHD 1,621,100 MYR 1,369,556 851,607 5.39Asiatic Development BHD 525,000 MYR 917,702 536,439 3.39British American Tobacco Malaysia BHD 25,000 MYR 292,087 321,113 2.03Bumiputra-Commerce Holdings BHD 350,900 MYR 1,119,527 592,512 3.75Genting BHD 560,000 MYR 1,240,357 598,064 3.78Hap Seng Plantations Holdings BHD 1,022,000 MYR 955,270 469,036 2.97Hektar Real Estate Investment Trust – REIT 668,800 MYR 299,551 148,643 0.94IGB Corporation BHD 1,350,200 MYR 987,743 537,818 3.40IJM Plantations BHD 688,000 MYR 621,746 385,255 2.44IOI Corporation BHD 327,360 MYR 548,018 336,383 2.13Kencana Petroleum BHD 1,041,000 MYR 556,920 393,622 2.49KLCC Property Holdings BHD 473,400 MYR 489,047 382,599 2.42Lingkaran Trans Kota Holdings BHD 651,000 MYR 314,462 343,867 2.18Media Prima BHD 2,026,700 MYR 1,156,036 649,337 4.11MISC BHD (Foreign Market) 373,000 MYR 1,050,551 904,370 5.72Petra Perdana BHD 728,700 MYR 867,816 262,916 1.66Public Bank BHD (Foreign Market) 166,100 MYR 506,651 419,503 2.65Resorts World BHD 1,709,700 MYR 1,704,546 1,115,286 7.06SapuraCrest Petroleum BHD 2,052,000 MYR 858,889 450,141 2.85Sime Darby BHD 168,100 MYR 452,595 252,307 1.60Sunway City BHD 859,800 MYR 1,172,973 434,304 2.75Tanjong PLC 294,100 MYR 1,367,800 1,129,028 7.14Telekom Malaysia BHD 612,700 MYR 559,767 544,699 3.45Tenaga Nasional BHD 629,400 MYR 1,812,845 1,135,441 7.18TM International BHD 861,700 MYR 1,388,607 900,373 5.70Tower Real Estate Investment Trust – REIT 904,000 MYR 329,383 229,620 1.45


UNLISTED SECURITIES

SHARES

MALAYSIAMalayan Banking BHD 423,000 MYR 1,154,708 622,685 3.94

TOTAL UNLISTED SECURITIES 1,154,708 622,685 3.94





— MALAYSIA EQUITY —


145



SHARES

BERMUDA

Covidien Ltd 23,975 USD 281,169 846,557 0.20

Tyco Electronics Ltd 16,275 USD 163,016 259,912 0.06

444,185 1,106,469 0.26


3M Co. 35,800 USD 2,697,495 2,046,686 0.47

Abbott Laboratories 66,000 USD 3,294,805 3,508,560 0.81

Abercrombie & Fitch Co. "A" 127,800 USD 6,933,144 2,838,438 0.66

Alcoa, Inc. 34,000 USD 1,060,340 363,460 0.08

Allegheny Technologies, Inc. 183,400 USD 9,113,693 4,425,442 1.03

Allstate Corp. (The) 200,200 USD 9,386,005 6,388,382 1.48

Altria Group, Inc. 402,900 USD 7,534,699 6,176,457 1.43

American Express Co. 25,500 USD 1,274,766 459,000 0.11

Amgen, Inc. 58,300 USD 2,784,053 3,357,497 0.78

Anadarko Petroleum Corp. 21,900 USD 1,113,406 831,105 0.19

Apache Corp. 87,000 USD 7,047,233 6,406,680 1.49

Applied Materials, Inc. 65,700 USD 1,166,344 666,855 0.15

Archer-Daniels-Midland Co. 234,300 USD 7,090,965 6,729,096 1.56

AT&T, Inc. 400,737 USD 11,491,574 11,312,805 2.63

Automatic Data Processing, Inc. 25,200 USD 1,058,187 986,076 0.23

Avnet, Inc. 160,300 USD 5,029,234 2,859,752 0.66

Bank of America Corp. 419,850 USD 15,826,121 5,558,814 1.29

Baxter International, Inc. 33,900 USD 1,586,316 1,787,547 0.41

Boeing Co. 36,400 USD 2,635,845 1,501,500 0.35

Bristol-Myers Squibb Co. 110,800 USD 2,639,664 2,533,996 0.59

Burlington Northern Santa Fe Corp. 13,200 USD 959,185 983,796 0.23

Cardinal Health, Inc. 19,600 USD 1,102,365 669,928 0.16

Caterpillar, Inc. 152,000 USD 9,684,445 6,636,320 1.54

CBS Corp. "B" 29,650 USD 908,328 236,311 0.05

Chevron Corp. 142,500 USD 9,970,096 10,456,650 2.43

Cigna Corp. 339,500 USD 8,721,139 5,598,355 1.30

Cisco Systems, Inc. 322,700 USD 6,954,011 5,237,421 1.22

Citigroup, Inc. 814,000 USD 16,631,798 5,535,200 1.28

Coca-Cola Co. (The) 109,900 USD 5,423,406 4,937,807 1.15

Colgate-Palmolive Co. 27,500 USD 1,797,462 1,870,550 0.43

Comcast Corp. "A" 387,000 USD 7,862,757 6,370,020 1.48

Computer Sciences Corp. 158,200 USD 7,398,187 5,362,980 1.24

ConocoPhillips 124,300 USD 8,214,073 6,395,235 1.48

Corning, Inc. 69,400 USD 1,800,590 625,294 0.15

Dell, Inc. 82,100 USD 2,402,543 839,883 0.19

Dominion Resources, Inc./VA 32,200 USD 1,224,390 1,134,406 0.26

Dow Chemical Co. (The) 256,500 USD 8,747,601 3,988,575 0.93

EI Du Pont de Nemours & Co. 148,600 USD 6,004,762 3,731,346 0.87


— NORTH AMERICA —


146


Eli Lilly & Co. 54,800 USD 2,858,221 2,173,916 0.50

Emerson Electric Co. 37,600 USD 1,546,774 1,350,216 0.31

Exxon Mobil Corp. 227,000 USD 15,548,718 17,839,930 4.14

FedEx Corp. 16,000 USD 1,248,412 995,520 0.23

Fortune Brands, Inc. 111,300 USD 7,509,162 4,464,243 1.04

General Electric Co. 571,600 USD 19,381,902 9,042,712 2.10

Goldman Sachs Group, Inc. (The) 86,100 USD 9,797,936 7,065,366 1.64

Goodrich Corp. 190,500 USD 8,888,622 6,966,585 1.62

Hartford Financial Services Group, Inc. 429,100 USD 11,278,737 7,002,912 1.63

Hewlett-Packard Co. 190,500 USD 6,424,744 6,894,195 1.60

Home Depot, Inc. 206,200 USD 6,886,002 4,765,282 1.11

Honeywell International, Inc. 40,700 USD 1,709,743 1,326,413 0.31

Ingram Micro, Inc. "A" 203,600 USD 3,394,005 2,659,016 0.62

Intel Corp. 444,000 USD 9,474,966 6,522,360 1.51

International Business Machines Corp. 112,800 USD 10,368,521 9,424,440 2.19

Johnson & Johnson 153,700 USD 9,752,027 9,094,429 2.11

JPMorgan Chase & Co. 312,800 USD 12,365,711 9,699,928 2.25

Kimberly-Clark Corp. 23,400 USD 1,454,087 1,233,180 0.29

Kraft Foods, Inc. "A" 77,534 USD 2,134,968 2,062,404 0.48

Lincoln National Corp. 379,400 USD 11,214,700 6,958,196 1.62

Macy's, Inc. 598,400 USD 10,495,686 5,630,944 1.31

Masco Corp. 506,300 USD 10,186,678 5,473,103 1.27

Medtronic, Inc. 61,900 USD 2,980,574 1,890,426 0.44

Merck & Co., Inc. 238,700 USD 8,881,898 7,065,520 1.64

Microsoft Corp. 424,900 USD 11,605,849 8,217,566 1.91

Morgan Stanley 418,100 USD 6,274,377 6,350,939 1.47

Newell Rubbermaid, Inc. 370,500 USD 7,470,240 3,667,950 0.85

Newfield Exploration Co. 218,000 USD 8,992,563 4,203,040 0.98

Nucor Corp. 143,600 USD 7,436,132 6,617,088 1.54

Occidental Petroleum Corp. 113,700 USD 6,432,790 6,644,628 1.54

Oracle Corp. 218,100 USD 3,572,380 3,888,723 0.90

PepsiCo, Inc. 85,700 USD 5,320,861 4,703,216 1.09

Pfizer, Inc. 557,600 USD 13,430,261 9,897,400 2.30

Philip Morris International, Inc. 112,300 USD 4,740,968 4,931,093 1.14

PPG Industries, Inc. 87,000 USD 5,476,884 3,520,890 0.82

Procter & Gamble Co. 147,500 USD 9,007,813 9,015,200 2.09

QUALCOMM, Inc. 79,900 USD 3,299,419 2,791,706 0.65

Royal Caribbean Cruises Ltd 204,400 USD 5,286,536 2,726,696 0.63

Schering-Plough Corp. 81,900 USD 1,795,869 1,395,576 0.32

Sherwin-Williams Co. (The) 39,000 USD 2,064,998 2,285,790 0.53

Spirit Aerosystems Holdings, Inc. "A" 246,600 USD 5,520,974 2,226,798 0.52

Terex Corp. 206,600 USD 4,786,357 3,417,164 0.79

Texas Instruments, Inc. 64,300 USD 1,890,316 974,788 0.23

Textron, Inc. 281,400 USD 3,536,178 3,627,246 0.84

Time Warner, Inc. 196,700 USD 3,178,967 1,980,769 0.46

Travelers Cos., Inc. (The) 147,600 USD 6,977,291 6,631,668 1.54

United Parcel Service, Inc. "B" 51,900 USD 3,755,551 2,811,942 0.65

United Technologies Corp. 52,900 USD 3,130,458 2,805,816 0.65




147


UnitedHealth Group, Inc. 61,500 USD 2,746,378 1,662,960 0.39

US Bancorp 54,600 USD 1,691,250 1,316,406 0.31

Valero Energy Corp. 28,000 USD 1,471,033 603,400 0.14

Verizon Communications, Inc. 217,400 USD 7,525,206 7,224,202 1.68

VF Corp. 69,100 USD 4,330,923 3,721,035 0.86

Viacom, Inc. "B" 405,100 USD 11,188,236 7,376,871 1.71

Walgreen Co. 48,900 USD 1,725,090 1,170,666 0.27

Wal-Mart Stores, Inc. 104,700 USD 5,206,181 5,763,735 1.34

Walt Disney Co. (The) 102,700 USD 2,785,252 2,308,696 0.54

WellPoint, Inc. 25,800 USD 1,766,392 1,112,238 0.26

Wells Fargo & Co. 286,700 USD 8,790,102 8,256,960 1.92

Western Union Co. (The) 37,200 USD 774,855 524,520 0.12

Wyeth 73,200 USD 3,245,063 2,714,988 0.63

580,583,814 428,039,830 99.36







148



SHARES


Abercrombie & Fitch Co. "A" 128,100 USD 7,856,267 2,845,101 1.03

Allegheny Technologies, Inc. 182,200 USD 9,172,747 4,396,486 1.60

Allstate Corp. (The) 202,400 USD 9,190,427 6,458,584 2.35

Altria Group, Inc. 415,500 USD 8,790,142 6,369,615 2.31

Apache Corp. 91,600 USD 9,310,453 6,745,424 2.45

Archer-Daniels-Midland Co. 242,200 USD 6,623,402 6,955,984 2.53

AT&T, Inc. 242,000 USD 9,032,853 6,831,660 2.48

Avnet, Inc. 167,000 USD 5,248,524 2,979,280 1.08

Bank of America Corp. 447,100 USD 14,914,368 5,919,604 2.15

Caterpillar, Inc. 155,600 USD 10,214,836 6,793,496 2.47

Chevron Corp. 86,600 USD 7,583,714 6,354,708 2.31

Cigna Corp. 377,500 USD 12,344,272 6,224,975 2.26

Citigroup, Inc. 818,600 USD 14,526,835 5,566,480 2.02

Comcast Corp. "A" 413,000 USD 8,364,789 6,797,980 2.47

Computer Sciences Corp. 160,300 USD 7,984,554 5,434,170 1.98

ConocoPhillips 127,400 USD 9,959,583 6,554,730 2.38

Dow Chemical Co. (The) 278,400 USD 11,137,238 4,329,120 1.57

EI Du Pont de Nemours & Co. 153,500 USD 7,100,665 3,854,385 1.40

Fortune Brands, Inc. 113,500 USD 7,456,234 4,552,485 1.65

Goldman Sachs Group, Inc. (The) 95,200 USD 11,063,592 7,812,112 2.84

Goodrich Corp. 188,700 USD 10,401,079 6,900,759 2.51

Hartford Financial Services Group, Inc. 400,800 USD 11,863,499 6,541,056 2.38

Hewlett-Packard Co. 170,300 USD 7,866,092 6,163,157 2.24

Home Depot, Inc. 223,700 USD 5,957,262 5,169,707 1.88

Ingram Micro, Inc. "A" 232,400 USD 3,961,992 3,035,144 1.10

Intel Corp. 285,700 USD 6,787,159 4,196,933 1.53

International Business Machines Corp. 82,000 USD 9,194,548 6,851,100 2.49

JPMorgan Chase & Co. 217,500 USD 8,956,474 6,744,675 2.45

Lincoln National Corp. 372,300 USD 12,855,462 6,827,982 2.48

Macy's, Inc. 614,500 USD 10,920,684 5,782,445 2.10

Masco Corp. 530,600 USD 10,383,752 5,735,786 2.08

Merck & Co., Inc. 251,800 USD 10,295,118 7,453,280 2.71

Morgan Stanley 460,100 USD 7,328,530 6,988,919 2.54

Newell Rubbermaid, Inc. 397,300 USD 7,801,294 3,933,270 1.43

Newfield Exploration Co. 239,700 USD 10,613,122 4,621,416 1.68

Nucor Corp. 155,100 USD 8,580,199 7,147,008 2.60

Occidental Petroleum Corp. 118,600 USD 8,281,225 6,930,984 2.52

Pfizer, Inc. 410,700 USD 9,082,107 7,289,925 2.65

PPG Industries, Inc. 91,100 USD 6,213,674 3,686,817 1.34

Royal Caribbean Cruises Ltd 244,800 USD 5,990,897 3,265,632 1.19

Sherwin-Williams Co. (The) 48,900 USD 2,818,209 2,866,029 1.04

Spirit Aerosystems Holdings, Inc. "A" 379,000 USD 8,183,643 3,422,370 1.24


— NORTH AMERICAN VALUE —


149


Terex Corp. 200,700 USD 4,801,467 3,319,578 1.21

Textron, Inc. 309,500 USD 3,889,188 3,989,455 1.45

Travelers Cos., Inc. (The) 167,100 USD 8,316,620 7,507,803 2.73

Verizon Communications, Inc. 174,300 USD 7,176,148 5,791,989 2.11

VF Corp. 74,900 USD 5,707,342 4,033,365 1.47

Viacom, Inc. "B" 397,800 USD 11,394,551 7,243,938 2.63

Wells Fargo & Co. 233,100 USD 7,485,680 6,713,280 2.44





— NORTH AMERICAN VALUE —


150



SHARES & WARRANTS

AUSTRIA

Vienna Insurance Group 66,174 EUR 4,443,014 2,250,121 2.91

BELGIUM

Colruyt SA 17,799 EUR 3,653,538 3,852,389 4.99

FINLAND

Fortum Oyj 68,972 EUR 1,340,424 1,480,860 1.92

FRANCE

April Group 42,158 EUR 2,260,055 1,075,721 1.39

AXA SA 124,186 EUR 3,527,807 2,767,871 3.59

Cie Generale d'Optique Essilor International SA 16,049 EUR 895,800 765,857 0.99

Groupe Eurotunnel SA (Call Warrants 30/12/2011) 8,063,928 EUR 2,733,811 920,816 1.19

Ipsen 88,309 EUR 4,295,806 3,484,569 4.51

Sanofi-Aventis SA 41,115 EUR 3,085,632 2,686,528 3.48

Vallourec 15,348 EUR 3,604,838 1,763,940 2.28

Vivendi 95,610 EUR 3,863,115 3,189,035 4.13

24,266,864 16,654,337 21.56

GERMANY

Duerr AG 9,984 EUR 371,722 172,418 0.22

Fielmann AG 49,295 EUR 3,081,462 3,237,702 4.19

Fresenius Medical Care AG & Co. KGaA 60,491 EUR 2,837,468 2,867,014 3.71

Gerresheimer AG 62,293 EUR 2,896,558 1,712,439 2.22

SAP AG 47,624 EUR 1,510,521 1,681,466 2.18

Surteco SE 37,516 EUR 2,046,557 528,881 0.68

Symrise AG 138,913 EUR 3,237,293 1,944,614 2.52

15,981,581 12,144,534 15.72

GIBRALTAR

PartyGaming PLC 1,203,543 GBP 5,343,272 3,431,796 4.44

IRELAND

AER Lingus 1,343,281 EUR 4,128,703 2,840,530 3.68

DCC PLC 180,268 EUR 4,780,621 2,642,976 3.42

Icon PLC – ADR 112,224 USD 3,437,292 2,101,956 2.72

Irish Life & Permanent PLC 288,935 EUR 470,472 639,501 0.83

Ryanair Holdings PLC 685,601 EUR 2,919,141 2,928,568 3.79

15,736,229 11,153,531 14.44

LUXEMBOURG

Reinet Investments SCA 168,550 EUR 1,506,632 1,672,795 2.17

NETHERLANDS

Nutreco Holding NV 33,113 EUR 2,028,112 1,093,735 1.42


— PAN EUROPEAN —


151


SPAIN

Grifols SA 135,756 EUR 3,039,710 2,355,908 3.05

SWEDEN

Elekta AB "B" 166,646 SEK 3,136,895 1,662,367 2.15

Tele2 AB 171,348 SEK 3,061,660 1,526,728 1.98

6,198,555 3,189,095 4.13

SWITZERLAND

Credit Suisse Group AG 79,848 CHF 4,090,805 2,154,370 2.79

Financiere Tradition (Bearer Shares) 677 CHF 109,985 44,223 0.06

4,200,790 2,198,593 2.85

TURKEY

Turkiye Vakiflar Bankasi Tao "D" 1,517,400 TRY 3,714,489 1,181,652 1.53

UNITED KINGDOM

Compass Group PLC 387,918 GBP 2,760,706 1,921,057 2.49

De La Rue PLC 131,646 GBP 2,227,699 1,774,647 2.30

Informa PLC 611,966 GBP 3,957,171 2,155,235 2.79

Sportingbet PLC 2,322,947 GBP 1,043,114 1,121,007 1.45

Tullow Oil PLC 365,100 GBP 3,524,042 3,460,497 4.48

13,512,732 10,432,443 13.51





— PAN EUROPEAN —


152



SHARES

PHILIPPINES

Aboitiz Power Corp. 1,226,000 PHP 89,041 97,977 1.67

Ayala Corp. 79,304 PHP 824,511 348,570 5.96

Ayala Land, Inc. 2,538,800 PHP 749,696 341,710 5.84

Banco de Oro Unibank, Inc. 537,500 PHP 644,948 271,293 4.64

Bank of the Philippine Islands 658,860 PHP 748,865 533,462 9.12

China Banking Corp. 15,101 PHP 203,862 125,445 2.14

DMCI Holdings, Inc. 1,294,300 PHP 254,785 72,132 1.23

First Gen Corp. 159,000 PHP 200,078 32,770 0.56

First Philippine Holdings Corp. 383,400 PHP 467,756 122,962 2.10

Globe Telecom, Inc. 35,720 PHP 1,051,019 570,919 9.76

GMA Holdings, Inc. – Receipt 1,508,000 PHP 190,912 104,656 1.79

Holcim Philippines, Inc. 732,000 PHP 107,033 29,249 0.50

International Container Term Services, Inc. 830,600 PHP 562,450 222,716 3.80

Jollibee Foods Corp. 213,900 PHP 220,022 186,684 3.19

Manila Electric Co. 236,261 PHP 401,156 295,637 5.05

Manila Water Co., Inc. 351,200 PHP 115,834 97,863 1.67

Metropolitan Bank & Trust 598,700 PHP 618,764 289,592 4.95

Philex Mining Corp. 396,000 PHP 65,999 40,807 0.70

Philippine Long Distance Telephone Co. 12,760 PHP 778,142 567,558 9.70

Philippine Stock Exchange, Inc. 14,160 PHP 166,417 40,202 0.69

Pilipino Telephone Corp. 1,954,000 PHP 314,256 283,546 4.84

PNOC Energy Development Corp. 5,925,000 PHP 616,144 236,751 4.04

Republic Cement Corp. 1,237,000 PHP 118,364 24,454 0.42

Robinsons Land Corp. 357,800 PHP 144,338 36,871 0.63

Security Bank Corp. 227,000 PHP 383,334 119,348 2.04

SM Investments Corp. 70,050 PHP 543,166 282,852 4.83

SM Prime Holdings, Inc. 1,780,400 PHP 427,593 280,820 4.80

Universal Robina Corp. 676,000 PHP 69,551 82,456 1.41

Vista Land & Lifescapes, Inc. 1,112,000 PHP 151,789 23,854 0.41





— PHILIPPINES EQUITY —


153



SHARES

TAIWAN

Acer, Inc. 62,930 TWD 113,977 81,751 1.76

Achem Technology Corp. 151,000 TWD 75,555 53,184 1.14

Advanced Semiconductor Engineering, Inc. 338,601 TWD 305,070 121,842 2.62

Ardentec Corp. 105,472 TWD 110,727 40,526 0.87

Asia Cement Corp. 176,220 TWD 218,587 152,884 3.29


Cathay Financial Holding Co., Ltd 82,137 TWD 170,894 91,423 1.97

China Life Insurance Co., Ltd/Taiwan 186,180 TWD 140,162 67,846 1.46

Chinatrust Financial Holding Co., Ltd 395,777 TWD 225,500 167,761 3.61

Chunghwa Telecom Co., Ltd 39,930 TWD 82,871 65,145 1.40

Compal Electronics, Inc. 185,060 TWD 203,606 97,348 2.09

Delta Electronics, Inc. 97,600 TWD 263,829 188,994 4.06

Far Eastern Textile Co., Ltd 269,386 TWD 304,078 172,512 3.71

Formosa Petrochemical Corp. 26,000 TWD 56,204 53,756 1.16

Formosa Plastics Corp. 50,800 TWD 79,518 67,542 1.45

Green Energy Technology, Inc. 17,401 TWD 138,734 50,941 1.10

HON HAI Precision Industry Co., Ltd 105,770 TWD 487,572 207,073 4.45

InnoLux Display Corp. 45,100 TWD 113,272 33,351 0.72

KGI Securities Co., Ltd 299,000 TWD 132,879 96,650 2.08

KYE Systems Corp. 233,551 TWD 321,476 117,158 2.52

Largan Precision Co., Ltd 12,000 TWD 134,504 74,468 1.60

MediaTek, Inc. 15,584 TWD 173,496 104,788 2.25

Motech Industries, Inc. 14,395 TWD 93,461 33,977 0.73

Paragon Technologies Co., Ltd 9,685 TWD 42,087 16,510 0.35

Powertech Technology, Inc. 59,950 TWD 203,173 99,818 2.15

President Securities Corp. 123,960 TWD 95,919 42,338 0.91

Richtek Technology Corp. 30,700 TWD 253,262 122,641 2.64

Shin Kong Financial Holding Co., Ltd 213,998 TWD 156,051 58,080 1.25

Shin Zu Shing Co., Ltd 50,901 TWD 262,835 127,282 2.74

SinoPac Financial Holdings Co., Ltd 456,000 TWD 201,055 99,425 2.14

Synnex Technology International Corp. 37,257 TWD 43,461 38,629 0.83

Taiwan Cement Corp. 222,880 TWD 254,199 183,170 3.94

Taiwan Fertilizer Co., Ltd 106,000 TWD 295,218 168,734 3.63

Taiwan Mobile Co., Ltd 100,000 TWD 162,615 148,510 3.19

Taiwan Semiconductor Manufacturing Co., Ltd 260,923 TWD 450,154 353,281 7.60

Tatung Co., Ltd 185,000 TWD 97,723 34,357 0.74

Unimicron Technology Corp. 52,217 TWD 72,504 21,656 0.47

Uni-President Enterprises Corp. 159,978 TWD 123,929 140,989 3.03

WPG Holdings Co., Ltd 163,414 TWD 188,222 77,988 1.68

Yuanta Financial Holding Co., Ltd 265,055 TWD 166,914 118,817 2.56

TOTAL SHARES 7,261,261 4,130,120 88.84


— TAIWAN EQUITY —


154


MUTUAL FUNDS


iShares MSCI Taiwan Index Fund – ETF 50,300 USD 572,168 380,268 8.18






— TAIWAN EQUITY —


155



SHARES

THAILAND

Advanced Info Service PCL (Foreign Market) 406,000 THB 1,109,666 928,700 4.13

Amata Corp. PCL (Foreign Market) 4,411,700 THB 1,137,239 517,903 2.30

Asian Property Development PCL (Foreign Market) 6,857,700 THB 946,278 469,610 2.09

Bangkok Bank PCL (Foreign Market) 632,900 THB 2,302,441 1,265,617 5.63

Bangkok Expressway PCL (Foreign Market) 2,233,400 THB 1,284,740 1,111,719 4.94

Big C Supercenter PCL (Foreign Market) 731,300 THB 840,129 804,840 3.58

Electricity Generating PCL (Foreign Market) 520,100 THB 1,295,929 1,099,909 4.89

Glow Energy PCL (Foreign Market) 816,800 THB 847,724 528,787 2.35

Hana Microelectronics PCL (Foreign Market) 1,493,100 THB 844,278 429,607 1.91

Hemaraj Land and Development PCL (Foreign Market) 18,184,700 THB 612,654 308,703 1.37

Kasikornbank PCL 867,600 THB 1,762,420 1,123,348 5.00

Major Cineplex Group PCL (Foreign Market) 5,440,600 THB 1,442,755 1,087,963 4.84

MCOT PCL (Foreign Market) 2,394,500 THB 1,510,455 881,875 3.92

Preuksa Real Estate PCL (Foreign Market) 4,479,600 THB 1,050,163 564,541 2.51

PTT Chemical PCL (Foreign Market) 679,200 THB 1,366,806 620,474 2.76

PTT Exploration & Production PCL (Foreign Market) 455,500 THB 1,698,155 1,402,344 6.24

PTT PCL (Foreign Market) 331,900 THB 3,007,933 1,671,197 7.43

Quality House PCL (Foreign Market) 8,915,800 THB 424,304 269,359 1.20

Robinson Department Store PCL (Foreign Market) 2,773,400 THB 915,992 454,852 2.02

Siam Commercial Bank PCL (Foreign Market) 472,100 THB 663,473 665,599 2.96

Siam Makro PCL (Foreign Market) 423,200 THB 1,055,626 821,924 3.66

Somboon Advance Technology PCL (Foreign Market) 2,814,600 THB 1,204,789 403,300 1.79

Thai Oil PCL (Foreign Market) 428,900 THB 792,791 291,240 1.30

Thai Tap Water Supply PCL (Foreign Market) 9,747,300 THB 1,347,538 1,172,311 5.21

Ticon Industrial Connection PCL (Foreign Market) 1,556,300 THB 834,450 257,480 1.15

Tisco Bank PCL (Foreign Market) 723,500 THB 396,521 183,607 0.82

Total Access Communication PCL 862,800 USD 1,057,594 759,264 3.38

Total Access Communication PCL 779,500 THB 888,908 717,709 3.19

TOTAL SHARES 32,641,751 20,813,782 92.57

MUTUAL FUNDS

THAILAND

CPN Retail Growth Property Fund 2,070,400 THB 482,315 464,656 2.07






— THAILAND EQUITY —


156



BONDS

CANADA

Canadian Natural Resources Ltd 5.7% 15/5/2017 594,000 USD 595,085 523,385 0.09

Nexen, Inc. 6.4% 15/5/2037 905,000 USD 897,425 717,133 0.13

Petro-Canada 6.05% 15/5/2018 372,000 USD 371,404 309,928 0.05

Petro-Canada 6.8% 15/5/2038 702,000 USD 700,516 536,051 0.09

Rogers Communications, Inc. 6.8% 15/8/2018 1,500,000 USD 1,497,902 1,532,835 0.27

Suncor Energy, Inc. 6.1% 1/6/2018 719,000 USD 718,207 626,428 0.11

Suncor Energy, Inc. 6.85% 1/6/2039 847,000 USD 842,146 682,191 0.12

5,622,685 4,927,951 0.86

FRANCE

AXA SA 8.6% 15/12/2030 145,000 USD 174,550 95,700 0.02

MEXICO

United Mexican States 5.95% 19/3/2019 "GMTN" 1,550,000 USD 1,546,663 1,561,625 0.27

NETHERLANDS

Deutsche Telekom International Finance BV 5.875%20/8/2013 2,800,000 USD 2,795,785 2,778,700 0.48

Imperial Tobacco Overseas BV 7.125% 1/4/2009 1,400,000 USD 1,406,520 1,407,585 0.25

Shell International Finance BV 6.375% 15/12/2038 1,500,000 USD 1,492,051 1,709,727 0.30

5,694,356 5,896,012 1.03

SPAIN

Telefonica Emisiones SAU 5.855% 4/2/2013 1,310,000 USD 1,332,903 1,277,135 0.22

Telefonica Emisiones SAU 6.421% 20/6/2016 640,000 USD 671,172 644,944 0.11

2,004,075 1,922,079 0.33

SWITZERLAND

Credit Suisse Guernsey Ltd FRN Perpetual 730,000 USD 648,055 343,589 0.06

UNITED KINGDOM

Barclays Bank PLC FRN Perpetual "144A" 3,560,000 USD 3,250,581 1,318,731 0.23

BAT International Finance PLC 9.5% 15/11/2018 "144A" 1,100,000 USD 1,089,741 1,235,773 0.22

BP Capital Markets PLC 5.25% 7/11/2013 5,000,000 USD 4,996,850 5,239,710 0.91

HBOS PLC FRN Perpetual "144A" 590,000 USD 517,186 230,348 0.04

HSBC Holdings PLC 6.5% 2/5/2036 2,305,000 USD 2,181,853 2,373,641 0.41


National Westminster Bank PLC 7.375% 1/10/2009 3,000,000 USD 3,078,289 2,940,795 0.51

16,611,312 14,947,150 2.60


Altria Group, Inc. 9.95% 10/11/2038 1,305,000 USD 1,275,252 1,436,883 0.25


— US BOND —


157


AMBAC Financial Group, Inc. FRN 7/2/2087 905,000 USD 599,761 90,648 0.02

Ameren Union Electric 6% 1/4/2018 1,731,000 USD 1,726,163 1,545,156 0.27

American General Finance Corp. 4.625% 15/5/2009"MTNI" 7,500,000 USD 7,175,947 6,425,205 1.12

American General Finance Corp. 5.2% 15/12/2011 "MTN" 3,900,000 USD 3,892,595 1,657,820 0.29

American General Finance Corp. 5.375%1/10/2012 "MTNH" 2,450,000 USD 2,446,226 1,022,316 0.18

Appalachian Power Co. 5.55% 1/4/2011 202,000 USD 204,858 200,459 0.03

Appalachian Power Co. 6.7% 15/8/2037 "P" 680,000 USD 709,852 640,903 0.11

Assurant, Inc. 5.625% 15/2/2014 280,000 USD 281,634 213,571 0.04

BAC Capital Trust XIV FRN Perpetual 5,221,000 USD 4,627,107 2,094,446 0.36

Bank of America Corp. 5.65% 1/5/2018 2,680,000 USD 2,666,624 2,732,930 0.48


Bank of America Corp. FRN Perpetual 4,812,000 USD 4,812,000 3,462,811 0.60

Bear Stearns Cos., Inc. (The) 5.35% 1/2/2012 2,700,000 USD 2,660,237 2,653,898 0.46

Brandywine Operating Partnership LP 5.7% 1/5/2017 100,000 USD 87,928 53,273 0.01

Bunge NA Finance LP 5.9% 1/4/2017 950,000 USD 951,100 697,257 0.12

Burlington Northern and Santa Fe Railway Co 2004-1 PassThrough Trust 4.575% 15/1/2021 1,252,503 USD 1,207,047 1,172,894 0.20

Cellco Partnership 8.5% 15/11/2018 "144A" 1,958,000 USD 1,937,387 2,303,912 0.40

CenterPoint Energy Houston Electric LLC 6.95%15/3/2033 "K2" 380,000 USD 422,790 353,777 0.06

CIT Group, Inc. 5.65% 13/2/2017 2,656,000 USD 2,387,849 1,861,986 0.32

Citigroup Capital XXI FRN 21/12/2057 2,112,000 USD 2,107,016 1,645,440 0.29

Citigroup, Inc. 5% 15/9/2014 4,130,000 USD 3,984,950 3,649,462 0.64

Citigroup, Inc. 5.1% 29/9/2011 2,870,000 USD 2,871,508 2,773,513 0.48



Citigroup, Inc. FRN Perpetual (Pref ) 2,225,000 USD 1,892,384 1,436,260 0.25

Comcast Corp. 6.5% 15/11/2035 280,000 USD 280,125 282,643 0.05

Commonwealth Edison Co. 6.15% 15/9/2017 790,000 USD 816,540 742,361 0.13

ConocoPhillips 5.2% 15/5/2018 450,000 USD 449,962 442,451 0.08


Consumers Energy Co. 5% 15/2/2012 "O" 320,000 USD 321,701 313,552 0.05

Consumers Energy Co. 5.65% 15/4/2020 265,000 USD 267,319 251,439 0.04

CRH America, Inc. 5.3% 15/10/2013 320,000 USD 315,817 225,950 0.04

Dominion Resources, Inc. 7% 15/6/2038 482,000 USD 478,366 477,521 0.08

Duke Realty LP 5.625% 15/8/2011 828,000 USD 842,944 640,804 0.11

Duke Realty LP 6.25% 15/5/2013 2,500,000 USD 2,498,565 1,725,953 0.30

EI Du Pont de Nemours & Co. 5.875% 15/1/2014 1,400,000 USD 1,393,508 1,447,092 0.25

Enbridge Energy Partners LP 9.875% 1/3/2019 1,200,000 USD 1,199,282 1,220,113 0.21

Enterprise Products Operating LLC 9.75% 31/1/2014 1,500,000 USD 1,500,000 1,532,954 0.27

Enterprise Products Operating LP 6.3% 15/9/2017 1,110,000 USD 1,141,122 947,836 0.17

Erac USA Finance Co. 7.95% 15/12/2009 "144A" 1,500,000 USD 1,544,783 1,434,407 0.25

Federal Home Loan Mortgage Corp. 5.75% 27/6/2016 5,000,000 USD 4,693,335 5,408,855 0.94

Federal National Mortgage Association 5% 15/3/2016 15,000,000 USD 15,470,194 17,008,620 2.96

Federal National Mortgage Association FRN 9/10/2019 1,190,000 USD 531,385 655,892 0.11

Financial Security Assurance Holdings Ltd FRN15/12/2066 "144A" 1,110,000 USD 929,561 224,765 0.04


— US BOND —


158


Fiserv, Inc. 6.125% 20/11/2012 200,000 USD 202,431 188,470 0.03

Fiserv, Inc. 6.8% 20/11/2017 110,000 USD 111,699 98,306 0.02

General Electric Capital Corp. 5.625% 1/5/2018 1,750,000 USD 1,745,656 1,780,532 0.31

GlaxoSmithKline Capital, Inc. 6.375% 15/5/2038 1,384,000 USD 1,379,857 1,588,247 0.28

Goldman Sachs Group, Inc. (The) 5.15% 15/1/2014 3,000,000 USD 2,572,523 2,683,272 0.47

Humana, Inc. 6.3% 1/8/2018 200,000 USD 204,324 151,208 0.03

JP Morgan Chase Capital XXV 6.8% 1/10/2037 "Y" 2,433,000 USD 2,223,724 2,272,069 0.40

JPMorgan Chase & Co. 5.125% 15/9/2014 1,125,000 USD 1,110,589 1,095,374 0.19


JPMorgan Chase & Co. FRN Perpetual "1" (Pref ) 1,300,000 USD 1,177,433 1,079,923 0.19

Kansas City Power & Light Co. 5.85% 15/6/2017 1,020,000 USD 1,054,022 943,719 0.16

Keycorp 6.5% 14/5/2013 "MTN" 1,125,000 USD 1,120,965 1,040,518 0.18

Mellon Funding Corp. 5.2% 15/5/2014 1,200,000 USD 1,196,584 1,125,817 0.20

Merrill Lynch & Co., Inc. 7.75% 14/5/2038 1,150,000 USD 1,149,741 1,268,488 0.22

Metlife Capital Trust IV 7.875% 15/12/2037 "144A" 800,000 USD 792,764 506,400 0.09

MetLife, Inc. 6.817% 15/8/2018 "A" 1,800,000 USD 1,806,059 1,730,918 0.30

Metropolitan Life Global Funding I 5.125% 9/11/2011"144A" 3,380,000 USD 3,444,525 3,240,389 0.56

Monumental Global Funding III 5.25% 15/1/2014 "144A" 3,500,000 USD 3,471,344 3,367,794 0.59

Morgan Stanley 6.625% 1/4/2018 "MTN" 2,974,000 USD 3,007,404 2,633,203 0.46

Nisource Finance Corp. 7.875% 15/11/2010 510,000 USD 538,262 466,796 0.08

Northern States Power/MN 5.25% 15/7/2035 225,000 USD 207,156 210,504 0.04


Ohio Power Co. 5.5% 15/2/2013 "F" 455,000 USD 457,541 439,350 0.08

Ohio Power Co. 6.6% 15/2/2033 "G" 305,000 USD 317,618 284,994 0.05

Oracle Corp. 6.5% 15/4/2038 1,000 USD 998 1,118 0.00

Pacific Gas & Electric Co. 6.25% 1/12/2013 900,000 USD 893,492 933,940 0.16

Pacificorp 6.1% 1/8/2036 325,000 USD 332,868 341,780 0.06

Philip Morris International, Inc. 5.65% 16/5/2018 1,160,000 USD 1,157,131 1,161,581 0.20

Pricoa Global Funding I 5.3% 27/9/2013 "144A" 2,940,000 USD 3,041,722 2,594,388 0.45

Principal Life Income Funding Trusts 5.125% 1/3/2011 1,960,000 USD 1,991,564 1,933,393 0.34

RBS Capital Trust I FRN Perpetual 2,440,000 USD 2,197,993 951,890 0.17

SCANA Corp. 6.875% 15/5/2011 "MTN" 600,000 USD 625,414 592,402 0.10

Time Warner Cable, Inc. 6.75% 1/7/2018 1,680,000 USD 1,678,680 1,635,485 0.28

Time Warner, Inc. 7.7% 1/5/2032 600,000 USD 616,696 608,054 0.11

Travelers Property Casualty Corp. 5% 15/3/2013 280,000 USD 282,152 265,768 0.05

Union Electric Co. 5.3% 1/8/2037 155,000 USD 136,741 106,634 0.02

Union Electric Co. 6.4% 15/6/2017 266,000 USD 280,842 244,973 0.04

United States Treasury Note/Bond 4% 15/8/2018 9,496,000 USD 9,608,164 11,111,801 1.94

United States Treasury Note/Bond 4.25% 15/11/2017 14,525,000 USD 15,206,824 17,139,500 2.99

United States Treasury Note/Bond 4.5% 15/2/2016 10,000,000 USD 10,665,094 11,921,880 2.08

United States Treasury Note/Bond 5% 15/5/2037 3,807,000 USD 4,026,949 5,627,222 0.98

Virginia Electric and Power Co. 8.875% 15/11/2038 792,000 USD 791,960 1,016,175 0.18

Wachovia Bank NA 5.6% 15/3/2016 1,310,000 USD 1,279,758 1,230,212 0.21

Wells Fargo & Co. FRN Perpetual "K" (Pref ) 2,000,000 USD 1,555,122 1,687,100 0.29

Wells Fargo Capital XIII FRN Perpetual "GMTN" 4,413,000 USD 4,245,046 3,652,022 0.64

Westar Energy, Inc. 5.1% 15/7/2020 350,000 USD 335,892 293,343 0.05

Wisconsin Power & Light Co. 6.375% 15/8/2037 120,000 USD 125,043 123,194 0.02

WR Berkley Corp. 5.125% 30/9/2010 220,000 USD 224,097 193,904 0.03


— US BOND —


159


WR Berkley Corp. 6.15% 15/8/2019 130,000 USD 133,797 105,554 0.02

Xerox Corp. 5.5% 15/5/2012 1,752,000 USD 1,759,567 1,392,577 0.24

XTO Energy, Inc. 5.5% 15/6/2018 1,111,000 USD 1,106,228 1,015,843 0.18

XTO Energy, Inc. 6.375% 15/6/2038 682,000 USD 681,093 608,256 0.11

XTO Energy, Inc. 6.75% 1/8/2037 897,000 USD 847,390 851,411 0.15

189,553,807 181,179,177 31.56

TOTAL BONDS 221,855,503 210,873,283 36.73

SECURITISED ASSETS


AmeriCredit Automobile Receivables Trust 5.19%6/11/2011 "2007-AX A3" 1,949,527 USD 1,951,266 1,908,260 0.33

Americredit Prime Automobile Receivable 5.22%8/6/2012 "2007-2M A3" 3,173,000 USD 3,180,626 2,771,873 0.48

BA Credit Card Trust 4.72% 15/5/2013 5,362,000 USD 5,397,911 5,124,512 0.89

BA Credit Card Trust FRN 17/1/2012 3,000,000 USD 2,826,402 2,808,542 0.49

Banc of America Commercial Mortgage, Inc. 5.118%11/7/2043 "2002-2 A3" 2,585,000 USD 2,588,937 2,365,233 0.41

Banc of America Commercial Mortgage, Inc. 6.186%11/6/2035 "2002-PB2 A4" 3,238,000 USD 3,357,931 3,059,931 0.53

Banc of America Commercial Mortgage, Inc. FRN 10/5/2045 1,500,000 USD 908,171 1,204,828 0.21

Banc of America Funding Corp. FRN20/2/2036 "2006-A 3A1" 3,024,906 USD 3,008,634 1,040,277 0.18

Banc of America Mortgage Securities, Inc. FRN 25/5/2035"2005-D 2A4" 3,619,146 USD 3,602,145 3,335,256 0.58

Banc of America Securities Auto Trust 5.34% 18/2/2011"2006-G1 B" 1,375,000 USD 1,358,177 1,291,566 0.22

Bank One Issuance Trust 4.37% 15/4/2012 "2004-B2 B2" 3,750,000 USD 3,724,318 3,589,934 0.63

Bank One Issuance Trust 4.77% 16/2/2016 "2003-C3 C3" 250,000 USD 236,739 121,928 0.02

Bear Stearns Commercial Mortgage Securities 4.871%11/9/2042 "2005-PWR9 A4A" 2,500,000 USD 2,425,057 2,089,349 0.36

Bear Stearns Commercial Mortgage Securities 5.201%11/12/2038 3,200,000 USD 2,996,194 2,567,274 0.45

Bear Stearns Commercial Mortgage Securities 6.48%15/2/2035 "2001-TOP2 A2" 3,250,000 USD 3,392,006 3,140,283 0.55

Bear Stearns Commercial Mortgage Securities FRN11/9/2038 "2006-PW12 A4" 5,145,000 USD 2,995,948 4,060,548 0.71

Bear Stearns Commercial Mortgage Securities FRN11/9/2038 "2006-PW12 AM" 251,000 USD 219,446 125,379 0.02

Bear Stearns Commercial Mortgage Securities FRN11/5/2039 "2003-PWR2 A4" 5,450,000 USD 5,497,445 4,871,575 0.85

Bear Stearns Commercial Mortgage Securities FRN13/8/2039 "2003-T12 A4" 7,611,000 USD 7,447,894 6,754,037 1.18

Capital One Auto Finance Trust FRN 15/2/2011"2006-B A3B" 421,358 USD 414,568 409,243 0.07

Carmax Auto Owner Trust 5.23% 15/12/2011 "2007-2 A3" 1,348,400 USD 1,357,212 1,328,415 0.23


Citibank Credit Card Issuance Trust 5.45% 10/5/2013"2006-A4 A4" 1,600,000 USD 1,619,686 1,532,144 0.27


— US BOND —


160


Citigroup Commercial Mortgage Trust FRN 15/3/2049"2006-C4 A3" 890,000 USD 854,840 686,428 0.12

Citigroup Commercial Mortgage Trust FRN 10/12/2049"2007-C6 AM" 100,000 USD 92,754 44,621 0.01

Citigroup/Deutsche Bank Commercial Mortgage Trust5.322% 11/12/2049 "2007-CD4 A4" 400,000 USD 394,081 274,852 0.05

CNH Equipment Trust 4.78% 16/7/2012 "2008-B A3A" 2,000,000 USD 1,999,755 1,913,753 0.33

CNH Equipment Trust 5.21% 15/12/2011 "2007-C A3A" 3,250,000 USD 3,249,761 3,199,091 0.56

Commercial Mortgage Pass Through Certificates FRN10/6/2046 "2006-C7 A4" 2,000,000 USD 1,926,990 1,603,175 0.28

Credit Suisse Mortgage Capital Certificates 5.343%15/12/2039 "2006-C5 AM" 146,000 USD 91,456 67,407 0.01

Credit Suisse Mortgage Capital Certificates FRN 15/6/2039"2007-C3 A4" 3,040,000 USD 2,867,888 1,900,353 0.33

Credit Suisse Mortgage Capital Certificates FRN 15/9/2040"2007-C5 AM" 930,000 USD 752,097 389,588 0.07

CS First Boston Mortgage Securities Corp. 4.7% 15/8/2036"2003-C4 A3" 914,024 USD 910,901 858,680 0.15

CS First Boston Mortgage Securities Corp. FRN 15/5/2036"2004-C2 A2" 2,500,000 USD 2,495,630 2,132,638 0.37

CS First Boston Mortgage Securities Corp. FRN 15/7/2036"2004-C3 A5" 4,474,000 USD 4,473,324 3,764,435 0.66

CW Capital Cobalt Ltd FRN 15/5/2046 800,000 USD 746,015 360,151 0.06

Daimler Chrysler Auto Trust 5.14% 8/9/2012 "2006-A B" 1,125,000 USD 1,106,301 992,843 0.17

Fannie Mae Pool 4.5% 1/8/2022 "888701" 3,427,180 USD 3,380,958 3,504,291 0.61

Fannie Mae Pool 4.5% 1/8/2035 "835751" 966,877 USD 927,639 982,873 0.17

Fannie Mae Pool 4.5% 1/5/2037 "919380" 989,608 USD 941,836 1,006,079 0.18

Fannie Mae Pool 5% 1/12/2022 "967350" 4,019,507 USD 4,022,202 4,128,789 0.72












Fannie Mae Pool FRN 1/1/2038 "967669" 3,334,685 USD 3,398,601 3,393,836 0.59

Fannie Mae Whole Loan 5% 25/6/2043 3,416,875 USD 3,421,075 3,489,484 0.61

First Horizon Asset Securities, Inc. FRN25/11/2034 "2004-6 B1" 1,366,632 USD 1,208,711 868,412 0.15

Freddie Mac 5% TBA 1,500,000 USD 1,512,162 1,529,532 0.27

Freddie Mac Gold Pool 4.5% 1/3/2023 "J07285" 1,900,615 USD 1,857,685 1,943,378 0.34

Freddie Mac Gold Pool 4.5% 1/4/2023 "J07688" 2,857,590 USD 2,792,176 2,921,886 0.51

Freddie Mac Gold Pool 5% 1/6/2023 "G18258" 4,320,580 USD 4,311,466 4,439,396 0.77



Freddie Mac Gold Pool 5% 1/6/2038 "A77351" 5,214,534 USD 5,113,459 5,324,109 0.93


— US BOND —


161


Freddie Mac Gold Pool 5.5% 1/8/2035 "G01850" 1,277,582 USD 1,279,176 1,309,219 0.23


Freddie Mac Gold Pool 5.5% 1/8/2038 "A79854" 6,422,455 USD 6,298,935 6,579,489 1.15







Freddie Mac Non Gold Pool FRN 1/10/2035 "1G0329" 8,133,578 USD 8,129,292 8,179,896 1.42

Ginnie Mae I Pool 5% 15/12/2036 "618741" 758,340 USD 755,027 780,073 0.14

Ginnie Mae I Pool 5% 15/6/2038 "632260" 5,956,912 USD 5,869,140 6,127,626 1.07

Ginnie Mae I Pool 5.5% 15/12/2037 "661189" 1,320,903 USD 1,337,445 1,363,857 0.24




Ginnie Mae I Pool 6% 15/12/2037 "646077" 751,941 USD 770,231 776,642 0.14




GMAC Commercial Mortgage Securities, Inc. 4.079%10/5/2036 "2003-C1 A2" 495,000 USD 451,121 422,374 0.07

GS Mortgage Securities Corp II FRN 10/4/2038"2006-GG6 A4" 2,000,000 USD 1,902,475 1,593,318 0.28

Household Automotive Trust 5.3% 17/11/2011 "2007-1 A3" 2,937,566 USD 2,938,325 2,795,562 0.49

Household Credit Card Master Note Trust I 5.1%15/6/2012 "2006-1 A" 5,974,000 USD 5,988,513 5,832,600 1.02

JP Morgan Chase Commercial Mortgage Securities Corp.4.994% 12/7/2035 "2002-C3 A2" 1,580,000 USD 1,574,150 1,409,362 0.25

JP Morgan Chase Commercial Mortgage Securities Corp.6.465% 15/11/2035 "2001-CIB3 A3" 2,700,000 USD 2,808,269 2,580,175 0.45

JP Morgan Chase Commercial Mortgage Securities Corp.FRN 12/8/2037 "2005-CB11 A4" 6,220,000 USD 5,847,330 5,016,064 0.87



JP Morgan Chase Commercial Mortgage Securities Corp.FRN 15/12/2044 "2005-LDP5 A4" 2,550,000 USD 2,528,885 2,010,922 0.35

JP Morgan Chase Commercial Mortgage Securities Corp.FRN 12/2/2049 "2007-CB19 AM" 1,500,000 USD 1,395,036 676,108 0.12

LB-UBS Commercial Mortgage Trust 4.166% 15/5/2032"2003-C3 A4" 2,400,000 USD 2,289,956 2,017,442 0.35

MBNA Credit Card Master Note Trust 4.45% 15/8/2016"2004-B1 B1" 925,000 USD 880,299 536,015 0.09

Merrill Lynch Mortgage Trust FRN 12/11/2035"2003-KEY1 A4" 400,000 USD 398,949 346,533 0.06

Morgan Stanley Capital I 5.01% 15/4/2038 "2003-IQ5 A4" 5,250,000 USD 5,219,224 4,659,556 0.81

Morgan Stanley Capital I FRN 15/7/2030 "1998-WF2 F" 3,250,000 USD 3,393,451 2,976,646 0.52

Morgan Stanley Capital I FRN 12/7/2044 "2006-HQ9 A4" 3,900,000 USD 3,971,974 2,969,802 0.52


— US BOND —


162


Morgan Stanley Capital I FRN 12/12/2049"2007-IQ16 AM" 200,000 USD 186,436 90,735 0.02

Morgan Stanley Dean Witter Capital I 4.74% 13/11/2036"2003-TOP9 A2" 5,590,000 USD 5,501,996 4,891,395 0.85

Nissan Auto Receivables Owner Trust 5.05% 17/11/2014"2008-B A4" 2,700,000 USD 2,699,281 2,367,630 0.41

Residential Funding Mortgage Securities I 5.75% 25/9/2034 950,000 USD 925,184 783,454 0.14

USAA Auto Owner Trust 4.16% 16/4/2012 "2008-1 A3" 5,710,000 USD 5,712,719 5,482,178 0.95


Volkswagen Auto Loan Enhanced Trust 4.5% 20/7/2012"2008-1 A3" 8,000,000 USD 7,999,665 7,585,694 1.32

Wachovia Auto Loan Owner Trust 2006-1 4.27% 20/4/2012 7,200,000 USD 7,199,959 6,846,595 1.19

Wachovia Auto Owner Trust 5.49% 22/4/2013 "2007-A A4" 5,300,000 USD 5,377,828 5,023,776 0.88

Wachovia Bank Commercial Mortgage Trust FRN 15/3/2042"2005-C17 A4" 3,000,000 USD 2,871,711 2,430,207 0.42

WFS Financial Owner Trust 3.74% 17/8/2012 "2005-1 B" 195,123 USD 194,169 193,048 0.03


MUTUAL FUNDS


Bank of New York Mellon Liquidity "B" 2,176,517 USD 2,176,517 2,176,517 0.38



UNLISTED SECURITIES

BONDS

AUSTRALIA

Macquarie Bank Ltd 4.1% 17/12/2013 "144A" 3,000,000 USD 2,999,614 3,062,340 0.53

National Australia Bank Ltd 5.35% 12/6/2013 "144A" 3,000,000 USD 2,999,894 2,900,697 0.51

5,999,508 5,963,037 1.04


Cargill, Inc. 6.625% 15/9/2037 "144A" 1,365,000 USD 1,375,938 1,158,896 0.20

Monongahela Power Co. 7.95% 15/12/2013 "144A" 1,600,000 USD 1,596,787 1,605,427 0.28

2,972,725 2,764,323 0.48






— US BOND —


163



BONDS

BERMUDA

Weatherford International Ltd 5.15% 15/3/2013 4,000,000 USD 3,993,054 3,533,584 0.45

CANADA

Anadarko Finance Co. 7.5% 1/5/2031 "B" 375,000 USD 424,280 335,305 0.04

Canadian National Railway Co. 6.25% 1/8/2034 725,000 USD 752,087 791,228 0.10

Canadian National Railway Co. 6.375% 15/11/2037 946,000 USD 995,091 1,053,900 0.13

Canadian Natural Resources Ltd 5.15% 1/2/2013 3,500,000 USD 3,499,180 3,253,429 0.42


Canadian Natural Resources Ltd 5.85% 1/2/2035 1,250,000 USD 1,173,256 938,420 0.12


Husky Energy, Inc. 6.8% 15/9/2037 1,000,000 USD 1,056,755 843,732 0.11

Nexen, Inc. 6.4% 15/5/2037 2,050,000 USD 1,999,959 1,624,445 0.21

Petro-Canada 6.05% 15/5/2018 556,000 USD 555,110 463,226 0.06

Petro-Canada 6.8% 15/5/2038 1,050,000 USD 1,047,780 801,786 0.10

Rogers Communications, Inc. 6.8% 15/8/2018 2,830,000 USD 2,826,041 2,891,949 0.37

Suncor Energy, Inc. 6.1% 1/6/2018 1,528,000 USD 1,526,315 1,331,268 0.17

Suncor Energy, Inc. 6.85% 1/6/2039 1,801,000 USD 1,790,677 1,450,561 0.19

TransCanada Pipelines Ltd 6.2% 15/10/2037 905,000 USD 928,286 797,081 0.10

TransCanada Pipelines Ltd 7.25% 15/8/2038 1,667,000 USD 1,666,376 1,682,080 0.22

Xstrata Finance Canada Ltd 5.5% 16/11/2011 "144A" 730,000 USD 743,047 571,438 0.07

Xstrata Finance Canada Ltd 5.8% 15/11/2016 "144A" 1,120,000 USD 1,134,304 713,356 0.09

23,435,262 20,647,920 2.64

CAYMAN ISLANDS

Transocean, Inc. 5.25% 15/3/2013 1,600,000 USD 1,598,310 1,490,544 0.19

Vale Overseas Ltd 6.875% 21/11/2036 409,000 USD 422,580 379,020 0.05

XL Capital Ltd FRN Perpetual "E" 625,000 USD 554,926 146,875 0.02

2,575,816 2,016,439 0.26

FRANCE

Lafarge SA 7.125% 15/7/2036 345,000 USD 378,432 197,762 0.02

GERMANY

Deutsche Bank AG/London 4.875% 20/5/2013 5,250,000 USD 5,243,753 5,172,347 0.66

Deutsche Bank AG/London 5.375% 12/10/2012 2,050,000 USD 2,084,518 2,103,977 0.27

Deutsche Bank AG/London 6% 1/9/2017 1,225,000 USD 1,262,597 1,312,181 0.17

8,590,868 8,588,505 1.10

LUXEMBOURG

Covidien International Finance SA 6.55% 15/10/2037 300,000 USD 315,452 308,856 0.04

Telecom Italia Capital SA 5.25% 15/11/2013 1,150,000 USD 1,138,586 876,875 0.11

Telecom Italia Capital SA 6.2% 18/7/2011 2,750,000 USD 2,778,097 2,440,625 0.31


— US CORPORATE BOND —


164


Telecom Italia Capital SA 7.721% 4/6/2038 2,488,000 USD 2,488,000 2,043,270 0.26

6,720,135 5,669,626 0.72

MEXICO

United Mexican States 5.95% 19/3/2019 "GMTN" 8,300,000 USD 8,282,129 8,362,250 1.07

NETHERLANDS

Deutsche Telekom International Finance BV 5.875%20/8/2013 5,000,000 USD 4,992,473 4,961,965 0.63


Siemens Financieringsmaatschappij NV 6.125%17/8/2026 "144A" 1,200,000 USD 1,214,873 1,156,139 0.15

9,539,593 9,936,494 1.27

QATAR

Ras Laffan Liquefied Natural Gas Co., Ltd III 5.832%30/9/2016 "144A" 750,000 USD 774,382 555,930 0.07

Ras Laffan Liquefied Natural Gas Co., Ltd III 5.838%30/9/2027 "144A" 455,000 USD 436,681 278,014 0.04

1,211,063 833,944 0.11

SPAIN

Telefonica Emisiones SAU 5.855% 4/2/2013 1,750,000 USD 1,780,596 1,706,096 0.22

Telefonica Emisiones SAU 7.045% 20/6/2036 675,000 USD 752,149 747,369 0.09

2,532,745 2,453,465 0.31

SWITZERLAND

Credit Suisse Guernsey Ltd FRN Perpetual 1,775,000 USD 1,575,750 835,439 0.10

UNITED ARAB EMIRATES

Abu Dhabi National Energy Co. 7.25% 1/8/2018 "144A" 2,875,000 USD 2,870,738 2,491,863 0.32

UNITED KINGDOM

Barclays Bank PLC 5.45% 12/9/2012 1,792,000 USD 1,832,431 1,820,423 0.23

Barclays Bank PLC FRN Perpetual "144A" 3,000,000 USD 2,739,254 1,111,290 0.14

BAT International Finance PLC 9.5% 15/11/2018 "144A" 1,125,000 USD 1,114,508 1,263,859 0.16

British Sky Broadcasting Group PLC 6.1%15/2/2018 "144A" 1,298,000 USD 1,296,687 1,077,112 0.14

BSKYB Finance UK PLC 5.625% 15/10/2015 "144A" 850,000 USD 853,830 721,655 0.09

HBOS PLC FRN Perpetual "144A" 2,545,000 USD 1,765,513 993,621 0.13


HSBC Holdings PLC 6.5% 15/9/2037 700,000 USD 661,929 721,227 0.09



SABMiller PLC 5.7% 15/1/2014 "144A" 4,000,000 USD 3,993,565 3,702,048 0.47

19,317,486 16,765,996 2.14




165



Allstate Life Global Funding Trusts 5.375%30/4/2013 "MTN" 4,200,000 USD 4,196,373 4,148,571 0.53

Altria Group, Inc. 9.95% 10/11/2038 2,267,000 USD 2,215,324 2,496,103 0.32

AMBAC Financial Group, Inc. FRN 7/2/2087 1,201,000 USD 795,926 120,297 0.02

Ameren Union Electric 6% 1/4/2018 2,115,000 USD 2,109,090 1,887,929 0.24

American Express Bank FSB 5.55% 17/10/2012 "BKN1" 1,190,000 USD 1,198,078 1,133,887 0.14

American Express Centurion Bank 5.2% 26/11/2010"BKNT" 6,000,000 USD 6,017,200 5,826,072 0.74

American Express Centurion Bank 6% 13/9/2017 "BKN1" 600,000 USD 598,482 567,125 0.07

American Express Credit Corp. 5.875% 2/5/2013 "MTN" 4,700,000 USD 4,685,814 4,526,937 0.58

American General Finance Corp. 3.875% 1/10/2009 "MTN" 1,000,000 USD 778,548 708,220 0.09

American General Finance Corp. 4.625% 15/5/2009"MTNI" 4,500,000 USD 3,855,545 3,855,123 0.49


American General Finance Corp. 5.375% 1/10/2012"MTNH" 3,150,000 USD 2,397,593 1,314,407 0.17

American General Finance Corp. 5.375% 1/9/2009"MTNG" 1,170,000 USD 951,692 835,440 0.11


American General Finance Corp. 5.75% 15/9/2016 "MTN" 720,000 USD 711,232 272,938 0.03


American General Finance Corp. FRN 17/8/2011 "MTN" 300,000 USD 121,539 114,874 0.01

American Honda Finance Corp. 5.1% 27/3/2012 "144A" 1,500,000 USD 1,531,351 1,472,097 0.19

American International Group, Inc. 5.05% 1/10/2015 1,200,000 USD 1,169,587 824,472 0.11

American International Group, Inc. FRN 20/3/2012 "MTN" 870,000 USD 613,368 544,693 0.07

Ameriprise Financial, Inc. FRN 1/6/2066 1,325,000 USD 1,327,163 722,840 0.09

Anadarko Petroleum Corp. 5.95% 15/9/2016 700,000 USD 712,978 623,946 0.08

Anadarko Petroleum Corp. 6.45% 15/9/2036 988,000 USD 1,007,456 789,013 0.10

Appalachian Power Co. 5.55% 1/4/2011 929,000 USD 942,143 921,912 0.12

Appalachian Power Co. 6.7% 15/8/2037 "P" 1,500,000 USD 1,313,958 1,413,757 0.18

Appalachian Power Co. 7% 1/4/2038 1,750,000 USD 1,738,751 1,755,166 0.22

Archer-Daniels-Midland Co. 5.45% 15/3/2018 3,000,000 USD 2,999,946 2,982,618 0.38


ASIF Global Financing XIX 4.9% 17/1/2013 "144A" 950,000 USD 939,461 723,751 0.09

AT&T, Inc. 5.5% 1/2/2018 3,600,000 USD 3,592,809 3,680,046 0.47

AT&T, Inc. 6.3% 15/1/2038 2,200,000 USD 2,190,637 2,361,638 0.30

BAC Capital Trust VI 5.625% 8/3/2035 800,000 USD 677,808 680,533 0.09


Baltimore Gas & Electric Co. 6.125% 1/7/2013 1,250,000 USD 1,249,888 1,160,192 0.15

Baltimore Gas & Electric Co. 6.35% 1/10/2036 955,000 USD 948,163 796,250 0.10

Bank of America Corp. 4.9% 1/5/2013 "MTN" 4,330,000 USD 4,319,652 4,295,347 0.55



Bank of America Corp. 5.75% 1/12/2017 750,000 USD 753,107 756,086 0.10



Bank of America NA 6% 15/10/2036 "BKNT" 1,200,000 USD 1,135,075 1,293,787 0.17




166


Bank of New York Mellon Corp. (The) 4.95% 1/11/2012"MTN" 2,500,000 USD 2,489,173 2,546,192 0.33

Bank of New York Mellon Corp. (The) 5.125% 27/8/2013 5,750,000 USD 5,731,166 5,897,326 0.75

Bear Stearns Cos, Inc. (The) 5.35% 1/2/2012 4,050,000 USD 4,006,185 3,980,846 0.51

Bear Stearns Cos, Inc. (The) 5.7% 15/11/2014 1,000,000 USD 909,597 959,202 0.12

Bear Stearns Cos, Inc. (The) 7.25% 1/2/2018 2,390,000 USD 2,384,053 2,643,935 0.34

Berkshire Hathaway Finance Corp. 5% 15/8/2013 "144A" 3,333,000 USD 3,323,954 3,402,930 0.43

BMC Software, Inc. 7.25% 1/6/2018 1,044,000 USD 1,038,164 1,004,108 0.13

Brandywine Operating Partnership LP 5.7% 1/5/2017 300,000 USD 263,784 159,818 0.02

Bunge NA Finance LP 5.9% 1/4/2017 3,187,000 USD 3,397,564 2,339,115 0.30

Burlington Northern and Santa Fe Railway Co 2005-3 PassThrough Trust 4.83% 15/1/2023 415,654 USD 346,477 485,072 0.06

Burlington Northern and Santa Fe Railway Co 2006-1 PassThrough Trust 5.72% 15/1/2024 "06-1" 667,891 USD 627,749 709,387 0.09

Burlington Northern Santa Fe Corp. 5.75% 15/3/2018 3,500,000 USD 3,492,501 3,407,208 0.44

Cargill, Inc. 6.125% 19/4/2034 "144A" 1,525,000 USD 1,492,152 1,220,668 0.16

Cellco Partnership 8.5% 15/11/2018 "144A" 4,317,000 USD 4,400,647 5,079,667 0.65

CenterPoint Energy Houston Electric LLC 6.95% 15/3/2033"K2" 1,240,000 USD 1,379,629 1,154,430 0.15

Chubb Corp. 6.5% 15/5/2038 "1" 3,000,000 USD 2,757,107 2,904,387 0.37

Chubb Corp. FRN 29/3/2067 1,885,000 USD 1,187,976 1,179,543 0.15

CIT Group, Inc. 5.65% 13/2/2017 2,334,000 USD 2,098,358 1,636,248 0.21

CIT Group, Inc. 5.8% 28/7/2011 1,300,000 USD 1,264,285 1,089,938 0.14

Citigroup Capital XXI FRN 21/12/2057 1,926,000 USD 1,921,453 1,500,529 0.19

Citigroup, Inc. 5% 15/9/2014 1,020,000 USD 984,177 901,320 0.12




Citigroup, Inc. 5.875% 29/5/2037 750,000 USD 418,905 760,885 0.10




Citigroup, Inc. 6.875% 5/3/2038 1,000,000 USD 993,410 1,154,953 0.15

Citigroup, Inc. FRN Perpetual (Pref ) 5,675,000 USD 4,246,758 3,663,269 0.47

Columbus Southern Power Co. 6.05% 1/5/2018 1,543,000 USD 1,539,736 1,511,804 0.19

Comcast Cable Communications Holdings, Inc. 8.375%15/3/2013 6,525,000 USD 7,164,076 6,770,072 0.86

Comcast Cable Communications Holdings, Inc. 9.455%15/11/2022 1,050,000 USD 1,324,127 1,191,708 0.15

Comcast Corp. 5.85% 15/1/2010 1,350,000 USD 1,366,859 1,346,668 0.17

Comcast Corp. 5.9% 15/3/2016 600,000 USD 604,670 578,208 0.07

Comcast Corp. 6.5% 15/11/2035 825,000 USD 825,368 832,788 0.11

Commonwealth Edison Co. 5.8% 15/3/2018 2,933,000 USD 2,927,810 2,680,404 0.34



ConocoPhillips Australia Funding Co. 5.5% 15/4/2013 875,000 USD 902,115 896,326 0.11

ConocoPhillips Holding Co. 6.95% 15/4/2029 2,040,000 USD 2,339,378 2,197,706 0.28

Consolidated Edison Company of New York, Inc. 5.375%15/12/2015 "05-C" 804,000 USD 805,514 796,454 0.10

Consumers Energy Co. 5.65% 15/9/2018 4,000,000 USD 3,985,857 3,886,668 0.50




167


Consumers Energy Co. 5.65% 15/4/2020 1,850,000 USD 1,866,188 1,755,328 0.22

Continental Airlines, Inc. 6.703% 15/6/2021 "01A1" 1,010,279 USD 1,002,431 757,710 0.10

Credit Suisse USA, Inc. 6.5% 15/1/2012 1,025,000 USD 1,068,558 1,050,175 0.13

CRH America, Inc. 6% 30/9/2016 602,000 USD 600,516 377,978 0.05

CRH America, Inc. 8.125% 15/7/2018 3,650,000 USD 3,091,978 2,656,926 0.34

CSX Corp. 5.75% 15/3/2013 1,550,000 USD 1,570,546 1,461,135 0.19

CVS Pass-Through Trust 6.036% 10/12/2028 "144A" 5,602,968 USD 5,476,087 3,439,998 0.44

Daimler Finance North America LLC 5.75% 8/9/2011"MTN" 600,000 USD 610,894 507,119 0.06

Devon Financing Corp ULC 7.875% 30/9/2031 490,000 USD 594,892 546,167 0.07

Dominion Resources, Inc. 7% 15/6/2038 1,557,000 USD 1,545,261 1,542,532 0.20

Dr Pepper Snapple Group, Inc. 6.82% 1/5/2018 "144A" 712,000 USD 711,901 709,002 0.09

Duke Energy Carolinas LLC 5.25% 15/1/2018 1,139,000 USD 1,135,506 1,177,104 0.15

Duke Realty LP 5.625% 15/8/2011 555,000 USD 565,017 429,524 0.05

Duke Realty LP 6.25% 15/5/2013 3,875,000 USD 3,872,775 2,675,226 0.34

Dun & Bradstreet Corp. 6% 1/4/2013 3,500,000 USD 3,500,000 3,316,702 0.42

EI Du Pont de Nemours & Co. 5.875% 15/1/2014 3,500,000 USD 3,483,770 3,617,730 0.46

Enbridge Energy Partners LP 7.5% 15/4/2038 "B" 1,212,000 USD 1,208,585 956,407 0.12

Enbridge Energy Partners LP 9.875% 1/3/2019 3,210,000 USD 3,208,078 3,263,803 0.42

Energy Transfer Partners LP 6.625% 15/10/2036 937,000 USD 919,887 663,179 0.08

Energy Transfer Partners LP 7.5% 1/7/2038 1,944,000 USD 1,924,220 1,534,654 0.20




Enterprise Products Operating LP 6.3% 15/9/2017 2,000,000 USD 2,056,077 1,707,812 0.22

Federal National Mortgage Association FRN 9/10/2019 6,670,000 USD 3,102,790 3,676,304 0.47

Financial Security Assurance Holdings Ltd FRN15/12/2066 "144A" 2,104,000 USD 1,175,246 426,041 0.05

Fiserv, Inc. 6.125% 20/11/2012 1,450,000 USD 1,467,625 1,366,410 0.17

Fiserv, Inc. 6.8% 20/11/2017 700,000 USD 710,806 625,582 0.08

Florida Power & Light Co. 5.95% 1/2/2038 1,900,000 USD 1,889,998 2,151,193 0.27

General Electric Capital Corp. 4.875% 4/3/2015 "MTN" 625,000 USD 623,628 606,063 0.08

General Electric Capital Corp. 5.5% 28/4/2011 "GMTN" 1,325,000 USD 1,356,442 1,355,218 0.17

General Electric Capital Corp. 5.5% 4/6/2014 "MTN" 2,200,000 USD 2,266,580 2,176,742 0.28



General Electric Capital Corp. 5.875% 15/2/2012 "MTNA" 1,350,000 USD 1,398,984 1,390,692 0.18


General Electric Capital Corp. 6% 15/6/2012 "MTNA" 5,000,000 USD 5,275,823 5,145,515 0.66

General Electric Capital Corp. FRN 15/11/2067 670,000 USD 677,887 425,123 0.05

General Mills, Inc. 5.2% 17/3/2015 3,150,000 USD 3,143,696 3,097,937 0.40

Genworth Global Funding Trusts 5.75% 15/5/2013 "MTN" 1,000,000 USD 1,022,486 681,509 0.09

Georgia Power Co. 5.7% 1/6/2017 "B" 900,000 USD 922,897 909,580 0.12




Goldman Sachs Group, Inc. (The) 5.95% 15/1/2027 475,000 USD 431,443 356,833 0.05






168




Hartford Financial Services Group, Inc. FRN 15/6/2038 1,776,000 USD 1,774,677 942,772 0.12

Hewlett-Packard Co. 4.5% 1/3/2013 4,000,000 USD 3,997,374 4,074,152 0.52

HSBC Finance Corp. 5.7% 1/6/2011 1,250,000 USD 1,257,822 1,219,736 0.16


Humana, Inc. 6.45% 1/6/2016 1,172,000 USD 1,220,284 935,174 0.12

International Lease Finance Corp. 4.75% 13/1/2012 1,400,000 USD 998,269 980,216 0.13

International Lease Finance Corp. 5.75% 15/6/2011 "MTN" 1,500,000 USD 1,517,709 1,094,219 0.14

JC Penney Corp., Inc. 6.375% 15/10/2036 518,000 USD 466,567 316,785 0.04


JPMorgan Chase & Co. 6% 15/1/2018 3,425,000 USD 3,483,259 3,650,731 0.47

JPMorgan Chase & Co. 6.125% 27/6/2017 760,000 USD 774,604 754,790 0.10



JPMorgan Chase Bank NA 6% 1/10/2017 "BKNT" 550,000 USD 554,701 557,776 0.07

Kansas City Power & Light Co. 5.85% 15/6/2017 1,020,000 USD 1,054,022 943,719 0.12

Keycorp 6.5% 14/5/2013 "MTN" 1,808,000 USD 1,801,515 1,672,228 0.21

Kinder Morgan Energy Partners LP 5.95% 15/2/2018 1,500,000 USD 1,497,147 1,287,896 0.16

Kinder Morgan Energy Partners LP 6.95% 15/1/2038"MTN" 1,396,000 USD 1,397,260 1,142,574 0.15

Kinder Morgan Energy Partners LP 7.4% 15/3/2031 1,075,000 USD 1,178,216 931,858 0.12

Kinder Morgan Energy Partners LP 9% 1/2/2019 1,190,000 USD 1,189,680 1,246,684 0.16

Kraft Foods, Inc. 6.75% 19/2/2014 1,710,000 USD 1,708,235 1,781,627 0.23

Kroger Co. (The) 6.8% 1/4/2011 850,000 USD 889,995 870,908 0.11

Kroger Co. (The) 6.9% 15/4/2038 1,200,000 USD 1,193,478 1,267,228 0.16

Lockheed Martin Corp. 6.15% 1/9/2036 "B" 1,150,000 USD 1,208,563 1,265,972 0.16

Lowe's Cos., Inc. 6.65% 15/9/2037 469,000 USD 471,274 453,236 0.06

M&I Marshall & Ilsley Bank 5% 17/1/2017 "BKNT" 760,000 USD 574,617 545,189 0.07

Marathon Oil Corp. 6.6% 1/10/2037 773,000 USD 806,933 591,369 0.08

MBNA Corp. 6.125% 1/3/2013 2,000,000 USD 1,936,686 1,937,024 0.25

McKesson Corp. 5.25% 1/3/2013 750,000 USD 766,537 698,194 0.09

Medco Health Solutions, Inc. 6.125% 15/3/2013 2,200,000 USD 2,189,371 2,058,085 0.26


Merrill Lynch & Co., Inc. 4.5% 4/11/2010 "MTNB" 550,000 USD 541,245 537,637 0.07


Merrill Lynch & Co., Inc. 6.05% 15/8/2012 "MTN" 900,000 USD 915,300 890,624 0.11

Merrill Lynch & Co., Inc. 6.15% 25/4/2013 "MTN" 2,000,000 USD 1,997,723 1,970,568 0.25

Merrill Lynch & Co., Inc. 6.22% 15/9/2026 650,000 USD 597,071 607,032 0.08


Metlife Capital Trust IV 7.875% 15/12/2037 "144A" 700,000 USD 693,667 443,100 0.06

MetLife, Inc. 6.5% 15/12/2032 1,385,000 USD 1,416,208 1,192,524 0.15

MetLife, Inc. 6.817% 15/8/2018 "A" 2,360,000 USD 2,367,944 2,269,426 0.29


Midamerican Energy Co. 5.3% 15/3/2018 4,250,000 USD 4,236,567 4,177,219 0.53


Morgan Stanley 4.75% 1/4/2014 1,250,000 USD 1,201,819 956,044 0.12





169



National City Bank/Cleveland OH 5.25% 15/12/2016"BKNT" 1,200,000 USD 1,198,236 1,037,138 0.13

New Cingular Wireless Services, Inc. 7.875% 1/3/2011 1,825,000 USD 1,928,128 1,892,485 0.24

New Cingular Wireless Services, Inc. 8.75% 1/3/2031 400,000 USD 514,538 506,232 0.06

News America Holdings, Inc. 7.75% 20/1/2024 1,775,000 USD 2,006,215 1,801,543 0.23

News America, Inc. 6.65% 15/11/2037 700,000 USD 692,091 702,612 0.09

Nisource Finance Corp. 7.875% 15/11/2010 900,000 USD 949,874 823,758 0.11


Northern States Power/MN 6.2% 1/7/2037 950,000 USD 993,965 1,020,030 0.13

Nustar Logistics 7.65% 15/4/2018 2,120,000 USD 2,116,116 1,960,828 0.25

Ohio Power Co. 5.5% 15/2/2013 "F" 725,000 USD 729,050 700,063 0.09

Oracle Corp. 5.75% 15/4/2018 2,310,000 USD 2,308,995 2,440,674 0.31

Oracle Corp. 6.5% 15/4/2038 1,426,000 USD 1,423,608 1,593,969 0.20

Pacific Gas & Electric Co. 6.05% 1/3/2034 1,345,000 USD 1,340,482 1,449,837 0.19



Pacificorp 6.1% 1/8/2036 645,000 USD 660,615 678,301 0.09

Panhandle Eastern Pipeline Co. 6.2% 1/11/2017 620,000 USD 630,566 481,192 0.06

Peco Energy Co. 5.35% 1/3/2018 3,215,000 USD 3,210,056 3,082,465 0.39



Potomac Electric Power Co. 6.5% 15/11/2037 2,170,000 USD 2,104,836 2,148,845 0.27

PPL Energy Supply LLC 6.5% 1/5/2018 90,000 USD 89,719 73,822 0.01


Principal Financial Group, Inc. 6.05% 15/10/2036 715,000 USD 695,744 487,594 0.06

Principal Life Global Funding I 5.25% 15/1/2013 "144A" 1,100,000 USD 1,127,023 1,042,606 0.13

Principal Life Income Funding Trusts 5.3% 24/4/2013"MTN" 2,500,000 USD 2,496,088 2,349,640 0.30

Procter & Gamble Co. 5.55% 5/3/2037 1,315,000 USD 1,314,880 1,472,938 0.19

Prudential Financial, Inc. 4.5% 15/7/2013 "MTNB" 900,000 USD 869,045 692,360 0.09

Prudential Financial, Inc. 5.15% 15/1/2013 "MTN" 3,500,000 USD 3,497,322 2,851,356 0.36

Prudential Financial, Inc. 5.7% 14/12/2036 "MTN" 1,796,000 USD 1,628,813 1,130,002 0.14

PSEG Power LLC 7.75% 15/4/2011 850,000 USD 893,789 846,119 0.11

Public Service Electric & Gas Co. 5.8% 1/5/2037 "MTN" 825,000 USD 818,741 783,765 0.10

Quest Diagnostics, Inc. 6.95% 1/7/2037 750,000 USD 795,401 649,435 0.08

RBS Capital Trust I FRN Perpetual 3,550,000 USD 2,177,894 1,384,922 0.18

Safeway, Inc. 6.25% 15/3/2014 3,074,000 USD 3,059,895 3,102,490 0.40

Safeway, Inc. 6.35% 15/8/2017 900,000 USD 943,120 898,008 0.11

Safeway, Inc. 6.5% 1/3/2011 2,655,000 USD 2,757,250 2,664,035 0.34

San Diego Gas & Electric Co. 6% 1/6/2026 1,500,000 USD 1,542,154 1,553,373 0.20

San Diego Gas & Electric Co. 6.125% 15/9/2037 "FFF" 825,000 USD 862,978 859,223 0.11

SCANA Corp. 6.875% 15/5/2011 "MTN" 575,000 USD 599,354 567,718 0.07

Schering-Plough Corp. 6% 15/9/2017 840,000 USD 865,561 840,531 0.11

Simon Property Group LP 4.6% 15/6/2010 950,000 USD 947,411 846,845 0.11

Simon Property Group LP 5.6% 1/9/2011 1,197,000 USD 1,213,077 1,001,244 0.13

SLM Corp. 4% 15/1/2010 2,500,000 USD 2,352,596 2,262,698 0.29

Southwestern Public Service Co. 6% 1/10/2036 475,000 USD 453,561 362,244 0.05

Spectra Energy Capital LLC 6.2% 15/4/2018 1,080,000 USD 1,078,219 946,023 0.12




170


TEPPCO Partners LP 7.55% 15/4/2038 2,170,000 USD 2,158,393 1,641,091 0.21



Time Warner Entertainment Co. LP 8.375% 15/3/2023 540,000 USD 625,596 548,867 0.07

Time Warner, Inc. 7.7% 1/5/2032 3,050,000 USD 3,189,713 3,090,943 0.39

Union Electric Co. 5.3% 1/8/2037 1,345,000 USD 1,004,146 925,310 0.12

Union Electric Co. 6.4% 15/6/2017 1,247,000 USD 1,280,394 1,148,425 0.15

Union Pacific Corp. 5.65% 1/5/2017 541,000 USD 545,145 523,763 0.07

Union Pacific Corp. 7.125% 1/2/2028 545,000 USD 606,788 551,598 0.07

Union Pacific Railroad Co. 2005 Pass Through Trust 5.082%2/1/2029 "05-1" 489,284 USD 467,607 482,332 0.06

United Technologies Corp. 6.125% 1/2/2019 3,900,000 USD 3,893,708 4,217,097 0.54

UnitedHealth Group, Inc. 5.5% 15/11/2012 1,850,000 USD 1,874,484 1,690,924 0.22

UnitedHealth Group, Inc. 6% 15/6/2017 700,000 USD 701,324 635,957 0.08

UnitedHealth Group, Inc. 6.875% 15/2/2038 1,958,000 USD 1,929,039 1,736,394 0.22

Valero Energy Corp. 6.125% 15/6/2017 1,065,000 USD 1,096,799 916,572 0.12

Valero Energy Corp. 6.625% 15/6/2037 860,000 USD 831,447 639,887 0.08

Verizon Communications, Inc. 5.5% 15/2/2018 2,100,000 USD 2,095,334 2,042,886 0.26

Verizon Communications, Inc. 6.4% 15/2/2038 2,100,000 USD 2,080,666 2,268,168 0.29

Verizon Global Funding Corp. 7.75% 1/12/2030 575,000 USD 681,694 645,570 0.08

Viacom, Inc. 5.75% 30/4/2011 1,400,000 USD 1,414,447 1,273,538 0.16

Virginia Electric and Power Co. 8.875% 15/11/2038 906,000 USD 905,955 1,162,442 0.15

Wachovia Bank NA 7.8% 18/8/2010 "BKNT" 4,000,000 USD 4,193,804 3,971,052 0.51

Wachovia Corp. 5.25% 1/8/2014 1,500,000 USD 1,472,246 1,372,209 0.18

Wachovia Corp. 5.5% 1/5/2013 "MTN" 6,350,000 USD 6,337,621 6,346,241 0.81

Wachovia Corp. 5.625% 15/10/2016 725,000 USD 716,878 653,778 0.08

Wachovia Corp. 5.7% 1/8/2013 "MTN" 950,000 USD 960,159 924,826 0.12

Wal-Mart Stores, Inc. 6.2% 15/4/2038 1,736,000 USD 1,730,969 2,018,675 0.26

Waste Management, Inc. (Old) 7.1% 1/8/2026 1,425,000 USD 1,548,587 1,196,299 0.15

WellPoint, Inc. 5.85% 15/1/2036 825,000 USD 754,940 683,036 0.09

WellPoint, Inc. 5.95% 15/12/2034 505,000 USD 484,906 425,095 0.05

Wells Fargo & Co. 4.375% 31/1/2013 4,000,000 USD 3,990,021 3,929,684 0.50

Wells Fargo & Co. 5.625% 11/12/2017 2,250,000 USD 2,241,626 2,345,731 0.30

Wells Fargo & Co. FRN Perpetual "K" (Pref ) 5,000,000 USD 3,763,420 4,217,750 0.54


Westar Energy, Inc. 5.1% 15/7/2020 1,319,000 USD 1,265,833 1,105,483 0.14

Wisconsin Power & Light Co. 6.375% 15/8/2037 600,000 USD 625,213 615,972 0.08

Wyeth 5.95% 1/4/2037 1,050,000 USD 1,056,914 1,184,400 0.15

Xerox Corp. 5.5% 15/5/2012 4,671,000 USD 4,687,445 3,712,744 0.47


XTO Energy, Inc. 6.375% 15/6/2038 1,118,000 USD 1,116,515 997,112 0.13


518,877,867 487,557,152 62.25

TOTAL BONDS 609,900,938 569,890,439 72.76




171


SECURITISED ASSETS


AmeriCredit Automobile Receivables Trust 5.19% 6/11/2011"2007-AX A3" 1,123,456 USD 1,105,793 1,099,675 0.14

Americredit Prime Automobile Receivable 5.22% 8/6/2012"2007-2M A3" 747,000 USD 748,796 652,565 0.08

BA Credit Card Trust 4.72% 15/5/2013 4,213,000 USD 4,231,306 4,026,402 0.51

Banc of America Commercial Mortgage, Inc. 5.675%10/7/2046 "2006-4 AM" 1,367,000 USD 876,192 664,984 0.08

Banc of America Commercial Mortgage, Inc. 6.186%11/6/2035 "2002-PB2 A4" 2,237,000 USD 2,319,909 2,113,979 0.27

Banc of America Commercial Mortgage, Inc. FRN10/10/2045 "2005-5 A4" 1,500,000 USD 1,434,390 1,202,991 0.15

Banc of America Commercial Mortgage, Inc. FRN10/7/2044 "2006-3 AM" 1,025,000 USD 896,919 514,670 0.07

Banc of America Commercial Mortgage, Inc. FRN10/5/2045 "2006-2 A4" 5,000,000 USD 3,339,345 4,016,093 0.51

Banc of America Funding Corp. FRN 20/2/2036"2006-A 3A1" 1,085,864 USD 1,092,322 373,433 0.05

Banc of America Mortgage Securities, Inc. FRN25/5/2035"2005-D 2A4" 441,873 USD 439,795 407,211 0.05

Banc of America Securities Auto Trust 5.34%18/2/2011 "2006-G1 B" 1,075,000 USD 1,059,035 1,009,770 0.13


Bear Stearns Commercial Mortgage Securities 4.74%13/3/2040 "2003-T10 A2" 2,500,000 USD 2,450,524 2,183,733 0.28

Bear Stearns Commercial Mortgage Securities 5.201%11/12/2038 "2006-PW14 A4" 6,500,000 USD 6,085,983 5,214,775 0.67

Bear Stearns Commercial Mortgage Securities FRN11/6/2050 "2006-PW17 AM" 2,012,000 USD 1,267,088 974,925 0.12

Bear Stearns Commercial Mortgage Securities FRN11/9/2038 "2006-PW12 A4" 8,000,000 USD 4,674,930 6,313,778 0.81


Bear Stearns Commercial Mortgage Securities FRN13/8/2039 "2003-T12 A4" 1,435,000 USD 1,368,929 1,273,426 0.16

Capital One Auto Finance Trust FRN 15/2/2011"2006-B A3B" 526,698 USD 518,319 511,553 0.07

Capital One Prime Auto Receivables Trust 4.58% 15/8/2012"2005-1 B" 2,000,000 USD 1,938,780 1,745,351 0.22



Caterpillar Financial Asset Trust 5.34% 25/6/2012 1,515,000 USD 1,342,806 1,505,381 0.19

Chase Issuance Trust 4.26% 15/5/2013 "2008-A9 A9" 7,000,000 USD 6,999,205 6,547,146 0.84

Citibank Credit Card Issuance Trust 5.15% 7/3/2011"2006-B2 B2" 1,231,000 USD 1,224,161 1,217,265 0.16

Citibank Credit Card Issuance Trust 5.45% 10/5/2013"2006-A4 A4" 2,200,000 USD 2,227,069 2,106,698 0.27

Citigroup Commercial Mortgage Trust FRN 10/12/2049 500,000 USD 326,128 370,981 0.05





172


Citigroup Commercial Mortgage Trust FRN 15/3/2049"2006-C4 A3" 1,000,000 USD 960,493 771,268 0.10

Citigroup/Deutsche Bank Commercial Mortgage Trust5.322% 11/12/2049 "2007-CD4 A4" 2,875,000 USD 2,832,452 1,975,498 0.25

Citigroup/Deutsche Bank Commercial Mortgage Trust FRN15/7/2044 "2005-CD1 A4" 1,370,000 USD 1,361,775 1,118,377 0.14

CNH Equipment Trust 4.78% 16/7/2012 "2008-B A3A" 2,000,000 USD 1,999,755 1,913,753 0.24

CNH Equipment Trust 5.27% 15/9/2011 2,500,000 USD 2,517,639 2,426,658 0.31

Commercial Mortgage Pass Through Certificates FRN10/6/2046 "2006-C7 A4" 4,730,000 USD 3,727,361 3,791,509 0.48

Credit Suisse Mortgage Capital Certificates 5.311%15/12/2039 6,153,000 USD 4,774,095 4,696,245 0.60

Credit Suisse Mortgage Capital Certificates 5.343%15/12/2039 517,000 USD 323,855 238,696 0.03

Credit Suisse Mortgage Capital Certificates FRN 15/2/2039 1,000,000 USD 759,993 798,618 0.10

Credit Suisse Mortgage Capital Certificates FRN 15/6/2039 2,000,000 USD 1,265,147 1,250,232 0.16

Credit Suisse Mortgage Capital Certificates FRN 15/6/2039 467,000 USD 383,453 199,295 0.03

Credit Suisse Mortgage Capital Certificates FRN 15/9/2040"2007-C5 AM" 1,070,000 USD 865,317 448,235 0.06

CS First Boston Mortgage Securities Corp. 5.183%15/11/2036 "2002-CKS4 A2" 3,385,000 USD 3,348,811 3,044,488 0.39

CW Capital Cobalt Ltd FRN 15/5/2046 1,035,000 USD 941,633 749,232 0.10

CW Capital Cobalt Ltd FRN 15/5/2046 1,660,000 USD 1,547,981 747,312 0.10

Daimler Chrysler Auto Trust 5% 8/2/2012 "2007-A A3A" 1,750,000 USD 1,749,907 1,663,806 0.21

GMAC Commercial Mortgage Securities, Inc. 4.079%10/5/2036 "2003-C1 A2" 670,000 USD 610,607 571,698 0.07



Honda Auto Receivables Owner Trust 5.46% 23/5/2011"2007-2 A3" 4,050,000 USD 4,110,709 4,037,362 0.52

Household Automotive Trust 5.3% 17/11/2011 "2007-1 A3" 2,308,087 USD 2,308,685 2,196,513 0.28

Household Credit Card Master Note Trust I 5.1% 15/6/2012"2006-1 A" 6,037,000 USD 6,053,539 5,894,109 0.75

John Deere Owner Trust 5.04% 15/7/2011 "2007-A A3" 1,416,625 USD 1,413,758 1,408,811 0.18

JP Morgan Chase Commercial Mortgage Securities Corp.4.994% 12/7/2035 "2002-C3 A2" 4,250,000 USD 4,234,265 3,791,005 0.48

JP Morgan Chase Commercial Mortgage Securities Corp.5.44% 12/6/2047 "2007-CB18 A4" 3,700,000 USD 3,670,168 2,628,035 0.34


JP Morgan Chase Commercial Mortgage Securities Corp.FRN 12/2/2049 "2007-CB19 AM" 2,310,000 USD 2,146,083 1,041,206 0.13


JP Morgan Chase Commercial Mortgage Securities Corp.FRN 12/8/2040 "2003-PM1A A4" 2,812,000 USD 2,767,496 2,424,040 0.31


LB-UBS Commercial Mortgage Trust 4.166% 15/5/2032"2003-C3 A4" 3,425,000 USD 3,261,808 2,879,058 0.37




173


LB-UBS Commercial Mortgage Trust FRN 15/7/2040"2007-C6 A4" 1,467,000 USD 1,498,301 1,027,736 0.13

MBNA Credit Card Master Note Trust 4.45% 15/8/2016"2004-B1 B1" 350,000 USD 333,087 202,816 0.03

Merrill Lynch Mortgage Trust FRN 12/10/2041"2004-BPC1 A5" 625,000 USD 600,717 516,512 0.07

Merrill Lynch Mortgage Trust FRN 12/11/2035"2003-KEY1 A4" 1,350,000 USD 1,346,450 1,169,548 0.15

Merrill Lynch Mortgage Trust FRN 12/5/2039 1,500,000 USD 1,084,057 1,201,302 0.15

Merrill Lynch/Countrywide Commercial Mortgage TrustFRN 12/12/2049 "2006-4 A3" 4,000,000 USD 3,916,651 2,959,476 0.38

Merrill Lynch/Countrywide Commercial Mortgage TrustFRN 12/6/2046 1,000,000 USD 735,625 788,158 0.10

Morgan Stanley Capital I FRN 11/6/2049 2,500,000 USD 1,841,551 1,823,556 0.23

Morgan Stanley Capital I FRN 12/12/2049"2007-IQ16 AM" 331,000 USD 308,551 150,166 0.02


Morgan Stanley Capital I FRN 13/6/2042 "2007-T27 A4" 4,000,000 USD 4,051,093 3,005,176 0.38

Morgan Stanley Capital I FRN 15/7/2030 "1998-WF2 F" 2,750,000 USD 2,871,382 2,518,701 0.32

Nissan Auto Receivables Owner Trust 5.03% 16/5/2011"2007-B A3" 1,200,000 USD 1,201,885 1,180,986 0.15

PNC Mortgage Acceptance Corp. 6.36% 12/3/2034"2001-C1 A2" 1,175,000 USD 1,223,433 1,135,406 0.15


USAA Auto Owner Trust 4.9% 15/2/2012 "2007-2 A3" 1,000,000 USD 999,796 988,202 0.13


Wachovia Auto Loan Owner Trust 2006-1 4.27% 20/4/2012 1,000,000 USD 865,534 950,916 0.12

Wachovia Auto Loan Owner Trust 2006-1 5.29% 20/4/2012"2007-1 A3A" 2,300,000 USD 2,310,098 2,197,453 0.28

Wachovia Auto Owner Trust 5.49% 22/4/2013 "2007-A A4" 3,250,000 USD 3,299,265 3,080,617 0.39

Wachovia Bank Commercial Mortgage Trust 4.867%15/2/2035 1,240,000 USD 1,201,710 1,085,358 0.14

Wachovia Bank Commercial Mortgage Trust FRN 15/3/2042"2005-C17 A4" 2,000,000 USD 1,914,474 1,620,138 0.21

Wachovia Bank Commercial Mortgage Trust FRN 15/7/2042 178,000 USD 131,810 143,450 0.02

WFS Financial Owner Trust 3.74% 17/8/2012 "2005-1 B" 87,805 USD 91,007 86,871 0.01


MUTUAL FUNDS








174


UNLISTED SECURITIES

BONDS

AUSTRALIA

Macquarie Bank Ltd 4.1% 17/12/2013 "144A" 5,000,000 USD 4,999,357 5,103,900 0.65


10,499,162 10,421,845 1.33

CHILE

Corp Nacional del Cobre de Chile – CODELCO 5.5%15/10/2013 "144A" 600,000 USD 610,583 587,782 0.08

NETHERLANDS

E.ON International Finance BV 6.65% 30/4/2038 "144A" 1,291,000 USD 1,285,601 1,215,811 0.16

SWITZERLAND

UBS AG (Stamford Branch) 5.75% 25/4/2018 "MTN" 2,150,000 USD 2,137,549 1,970,460 0.25


American Honda Finance Corp. 5.125% 15/12/2010 "144A" 1,000,000 USD 1,017,850 986,500 0.13

Cargill, Inc. 6.125% 15/9/2036 "144A" 854,000 USD 834,901 678,882 0.09

Cargill, Inc. 6.375% 1/6/2012 "144A" 2,000,000 USD 2,098,041 1,952,750 0.25

Erac USA Finance Co. 7% 15/10/2037 "144A" 1,000,000 USD 1,003,802 566,935 0.07

MetLife Capital Trust X FRN 8/4/2038 "144A" 1,200,000 USD 1,200,000 844,176 0.11

Monongahela Power Co. 7.95% 15/12/2013 "144A" 4,000,000 USD 3,991,969 4,013,568 0.51

Monumental Global Funding II 4.375% 30/7/2009 "144A" 4,000,000 USD 3,993,797 3,967,528 0.51

NGPL PipeCo LLC 6.514% 15/12/2012 "144A" 4,080,000 USD 4,161,251 3,882,805 0.49

Sovereign Bank 8.75% 30/5/2018 750,000 USD 661,620 748,517 0.09

18,963,231 17,641,661 2.25

TOTAL BONDS 33,496,126 31,837,559 4.07

SECURITISED ASSETS


Vornado Finance LLC FRN 15/3/2015 "2000-VNO A2" 625,000 USD 658,746 623,336 0.08

TOTAL SECURITISED ASSETS 658,746 623,336 0.08








175



BONDS

GERMANY

Deutsche Bank AG/London 6% 1/9/2017 1,000,000 USD 995,609 1,071,168 0.72

NETHERLANDS


Siemens Financieringsmaatschappij NV 6.125% 17/8/2026"144A" 930,000 USD 928,313 896,008 0.60

2,072,219 2,206,799 1.48

QATAR

Ras Laffan Liquefied Natural Gas Co., Ltd III 5.832% 30/9/2016 "144A" 770,000 USD 770,000 570,755 0.38

Ras Laffan Liquefied Natural Gas Co., Ltd III 5.838% 30/9/2027 "144A" 970,000 USD 972,648 592,689 0.40

1,742,648 1,163,444 0.78

SWITZERLAND

Credit Suisse Guernsey Ltd FRN Perpetual 2,500,000 USD 2,500,000 1,176,675 0.79

UNITED ARAB EMIRATES

Abu Dhabi National Energy Co. 7.25% 1/8/2018 "144A" 722,000 USD 720,930 625,783 0.42

UNITED KINGDOM

Barclays Bank PLC FRN Perpetual "144A" 2,250,000 USD 2,297,637 833,467 0.56

BP Capital Markets PLC 5.25% 7/11/2013 2,000,000 USD 1,998,740 2,095,884 1.40

HSBC Holdings PLC 6.5% 2/5/2036 975,000 USD 1,045,783 1,004,035 0.67



6,983,962 5,666,495 3.79


Alabama Power Co. 5.1% 1/2/2011 "HH" 1,500,000 USD 1,499,819 1,511,691 1.01

Allstate Life Global Funding Trusts 5.375% 30/4/2013"MTN" 1,200,000 USD 1,198,964 1,185,306 0.79

American Express Bank FSB 5.55% 17/10/2012 "BKN1" 1,160,000 USD 1,158,903 1,105,301 0.74

American Express Centurion Bank 6% 13/9/2017 "BKNT" 640,000 USD 638,637 604,934 0.41

American Express Credit Corp. 5.875% 2/5/2013 "MTN" 1,200,000 USD 1,196,378 1,155,814 0.77


AT&T, Inc. 6.3% 15/1/2038 1,050,000 USD 1,045,535 1,127,146 0.75

BAC Capital Trust XI 6.625% 23/5/2036 1,500,000 USD 1,617,840 1,404,945 0.94


Bank of America Corp. 4.9% 1/5/2013 "MTN" 750,000 USD 748,207 743,998 0.50

Bank of America Corp. 5.42% 15/3/2017 1,000,000 USD 1,136,900 896,822 0.60



— US HIGH INVESTMENT GRADE BOND —


176






Bank of America NA 6% 15/10/2036 "BKNT" 160,000 USD 159,348 172,505 0.12

Bank of New York Mellon Corp. (The) 4.95% 1/11/2012"MTN" 2,000,000 USD 1,988,279 2,036,954 1.36

Bank of New York Mellon Corp. (The) 5.125% 27/8/2013 750,000 USD 747,538 769,217 0.52

Bear Stearns Cos., Inc. (The) 5.35% 1/2/2012 1,700,000 USD 1,649,206 1,670,972 1.12

Bear Stearns Cos., Inc. (The) 7.25% 1/2/2018 970,000 USD 967,587 1,073,062 0.72

Burlington Northern and Santa Fe Railway Co. 2005-3Pass Through Trust 4.83% 15/1/2023 "05-3 TR" 1,208,475 USD 1,208,475 1,410,302 0.94

Burlington Northern and Santa Fe Railway Co. 2006-1Pass Through Trust 5.72% 15/1/2024 "06-1" 2,154,487 USD 2,154,487 2,288,345 1.53

Cargill, Inc. 6.125% 19/4/2034 "144A" 725,000 USD 709,993 580,318 0.39

Cellco Partnership 8.5% 15/11/2018 "144A" 915,000 USD 905,367 1,076,649 0.72

Citigroup Capital XXI FRN 21/12/2057 807,000 USD 805,096 628,726 0.42







Citigroup, Inc. FRN Perpetual (Pref ) 750,000 USD 637,882 484,132 0.32

EI Du Pont de Nemours & Co. 5.875% 15/1/2014 1,000,000 USD 995,360 1,033,637 0.69

Federal National Mortgage Association FRN 9/10/2019 1,000,000 USD 446,542 551,170 0.37





General Electric Capital Corp. FRN 15/11/2067 1,480,000 USD 1,480,000 939,078 0.63

General Electric Co. 5.25% 6/12/2017 1,500,000 USD 1,489,235 1,508,060 1.01

Genworth Global Funding Trusts 5.2% 8/10/2010 "MTN" 1,700,000 USD 1,699,316 1,342,334 0.90

Genworth Global Funding Trusts 5.75% 15/5/2013 "MTN" 910,000 USD 909,370 620,173 0.42

GlaxoSmithKline Capital, Inc. 5.65% 15/5/2018 881,000 USD 880,498 934,832 0.63

GlaxoSmithKline Capital, Inc. 6.375% 15/5/2038 700,000 USD 739,467 803,304 0.54

Goldman Sachs Group, Inc. (The) 5% 15/1/2011 2,000,000 USD 1,998,260 1,928,760 1.29






HSBC Bank USA NA (New York NY) 5.875% 1/11/2034"BKNT" 950,000 USD 945,818 938,299 0.63

HSBC Finance Corp. 5% 30/6/2015 520,000 USD 518,532 463,147 0.31




JPMorgan Chase & Co. 6% 15/1/2018 1,300,000 USD 1,323,936 1,385,679 0.93




177




Lowe's Cos., Inc. 6.65% 15/9/2037 540,000 USD 537,867 521,850 0.35



Merrill Lynch & Co., Inc. 6.05% 15/8/2012 "MTN" 1,200,000 USD 1,198,788 1,187,498 0.80

MetLife, Inc. 6.5% 15/12/2032 690,000 USD 710,815 594,109 0.40

MetLife, Inc. 6.817% 15/8/2018 "A" 870,000 USD 872,929 836,610 0.56





Oracle Corp. 6.5% 15/4/2038 494,000 USD 493,172 552,188 0.37

Philip Morris International, Inc. 5.65% 16/5/2018 750,000 USD 748,145 751,022 0.50

Philip Morris International, Inc. 6.375% 16/5/2038 750,000 USD 748,135 791,766 0.53


Principal Life Global Funding I 5.25% 15/1/2013 "144A" 810,000 USD 814,425 767,737 0.51

Principal Life Income Funding Trusts 5.125% 1/3/2011 1,040,000 USD 1,038,882 1,025,882 0.69

Principal Life Income Funding Trusts 5.3% 24/4/2013"MTN" 815,000 USD 813,725 765,983 0.51

San Diego Gas & Electric Co. 6% 1/6/2026 500,000 USD 498,053 517,791 0.35

Target Corp. 7% 15/7/2031 500,000 USD 546,419 464,786 0.31

Union Pacific Railroad Co. 2005 Pass Through Trust 5.082%2/1/2029 "05-1" 1,097,954 USD 1,097,954 1,082,352 0.72

United Technologies Corp. 6.125% 1/2/2019 1,100,000 USD 1,098,225 1,189,438 0.80


Wachovia Bank NA 5.6% 15/3/2016 690,000 USD 689,390 647,974 0.43



Wachovia Corp. 5.625% 15/10/2016 900,000 USD 897,627 811,587 0.54



113,159,164 106,699,249 71.44

TOTAL BONDS 128,174,532 118,609,613 79.42

SECURITISED ASSETS


Banc of America Commercial Mortgage, Inc. FRN 10/5/2045 600,000 USD 363,268 481,931 0.32


Bear Stearns Commercial Mortgage Securities 6.48%15/2/2035 "2001-TOP2 A2" 1,000,000 USD 1,035,385 966,241 0.65

Bear Stearns Commercial Mortgage Securities FRN11/9/2038 "2006-PW12 A4" 1,400,000 USD 819,946 1,104,911 0.74






178


Citigroup/Deutsche Bank Commercial Mortgage Trust5.322% 11/12/2049 "2007-CD4 A4" 2,500,000 USD 2,382,168 1,717,824 1.15

Citigroup/Deutsche Bank Commercial Mortgage Trust FRN15/7/2044 "2005-CD1 A4" 2,300,000 USD 2,297,319 1,877,567 1.26

Commercial Mortgage Pass Through Certificates FRN10/6/2046 "2006-C7 A4" 500,000 USD 314,415 400,794 0.27

Credit Suisse Mortgage Capital Certificates 5.343%15/12/2039 124,000 USD 77,675 57,250 0.04

CS First Boston Mortgage Securities Corp. 4.7% 15/8/2036 1,828,048 USD 1,835,959 1,717,359 1.15

CW Capital Cobalt Ltd FRN 15/5/2046 700,000 USD 652,763 315,132 0.21

Ge Capital Commercial Mortgage Corp. FRN 10/6/2048"2005-C1 A5" 1,000,000 USD 957,453 804,083 0.54

JP Morgan Chase Commercial Mortgage Securities Corp.5.44% 12/6/2047 "2007-CB18 A4" 2,300,000 USD 2,187,639 1,633,643 1.09



JP Morgan Chase Commercial Mortgage Securities Corp.FRN 12/2/2049 "2007-CB19 AM" 600,000 USD 557,484 270,443 0.18

LB-UBS Commercial Mortgage Trust 4.166% 15/5/2032"2003-C3 A4" 1,000,000 USD 970,477 840,601 0.56

LB-UBS Commercial Mortgage Trust FRN 15/7/2040"2007-C6 A4" 1,943,000 USD 1,952,331 1,361,207 0.91

Merrill Lynch Mortgage Trust FRN 12/11/2035"2003-KEY1 A4" 2,000,000 USD 2,073,164 1,732,663 1.16



MUTUAL FUNDS





UNLISTED SECURITIES

BONDS

AUSTRALIA


CHILE

Corp Nacional del Cobre de Chile – CODELCO 5.5%15/10/2013 "144A" 750,000 USD 775,684 734,728 0.49




179


NETHERLANDS

E.ON International Finance BV 6.65% 30/4/2038 "144A" 299,000 USD 297,750 281,586 0.19

SWITZERLAND

UBS AG (Stamford Branch) 5.75% 25/4/2018 "MTN" 750,000 USD 745,657 687,370 0.46


Cargill, Inc. 6.625% 15/9/2037 "144A" 500,000 USD 498,882 424,504 0.28

Monumental Global Funding II 4.375% 30/7/2009 "144A" 2,000,000 USD 1,996,899 1,983,764 1.33

2,495,781 2,408,268 1.61








180



BONDS

CANADA

Bombardier, Inc. 8% 15/11/2014 "144A" 300,000 USD 308,838 263,250 0.19

Cascades, Inc. 7.25% 15/2/2013 500,000 USD 517,670 255,000 0.18

Fairfax Financial Holdings Ltd 7.75% 26/4/2012 288,000 USD 280,586 248,400 0.18

Kinder Morgan Finance Co. ULC 5.7% 5/1/2016 1,300,000 USD 1,195,008 968,500 0.68

Novelis, Inc. 7.25% 15/2/2015 500,000 USD 503,526 290,000 0.20

Rogers Communications, Inc. 8% 15/12/2012 600,000 USD 608,547 574,500 0.40

Shaw Communications, Inc. 7.25% 6/4/2011 400,000 USD 409,522 378,000 0.27

Stone Container Finance 7.375% 15/7/2014 2,000,000 USD 1,742,266 370,000 0.26

Sun Media Corp. 7.625% 15/2/2013 1,454,000 USD 1,451,153 1,170,470 0.82

Videotron Ltee 6.375% 15/12/2015 750,000 USD 695,139 588,750 0.41

Videotron Ltee 6.875% 15/1/2014 1,000,000 USD 1,027,501 885,000 0.62

Videotron Ltee 9.125% 15/4/2018 "144A" 70,000 USD 68,982 65,100 0.05

8,808,738 6,056,970 4.26

GERMANY

Kabel Deutschland GmbH 10.625% 1/7/2014 1,550,000 USD 1,633,240 1,379,500 0.97

LIBERIA

Royal Caribbean Cruises Ltd 7.25% 15/6/2016 575,000 USD 573,675 316,250 0.22

Royal Caribbean Cruises Ltd 7.5% 15/10/2027 1,070,000 USD 976,037 535,000 0.38

Royal Caribbean Cruises Ltd 8.75% 2/2/2011 1,200,000 USD 1,175,267 918,000 0.65

2,724,979 1,769,250 1.25

UNITED KINGDOM

UnumProvident Finance Co. PLC 6.85% 15/11/2015"144A" 752,000 USD 758,734 620,025 0.44

Virgin Media Finance PLC 9.125% 15/8/2016 751,000 USD 773,082 555,740 0.39

1,531,816 1,175,765 0.83


AES Corp. (The) 7.75% 15/10/2015 1,000,000 USD 1,024,962 840,000 0.59

AES Corp. (The) 8% 15/10/2017 2,500,000 USD 2,587,499 2,050,000 1.44

AES Corp. (The) 8% 1/6/2020 "144A" 1,000,000 USD 961,997 775,000 0.55

AES Eastern Energy LP 9% 2/1/2017 "99-A" 573,054 USD 540,467 509,445 0.36

Allied Waste North America, Inc. 5.75% 15/2/2011 "B" 185,000 USD 185,000 173,438 0.12

Allied Waste North America, Inc. 6.125% 15/2/2014 250,000 USD 241,385 226,250 0.16

Allied Waste North America, Inc. 6.875% 1/6/2017 2,150,000 USD 2,072,497 1,956,500 1.38

American Airlines Pass Through Trust 2001-01 6.977%23/5/2021 "01-1" 410,981 USD 380,933 205,490 0.14

ARAMARK Corp. 8.5% 1/2/2015 1,500,000 USD 1,541,260 1,357,500 0.96

Ashtead Capital, Inc. 9% 15/8/2016 "144A" 100,000 USD 100,000 51,500 0.04

BE Aerospace, Inc. 8.5% 1/7/2018 1,022,000 USD 936,705 909,580 0.64

Boyd Gaming Corp. 6.75% 15/4/2014 1,500,000 USD 1,028,761 960,000 0.68

Casella Waste Systems, Inc. 9.75% 1/2/2013 235,000 USD 250,485 188,000 0.13


— US HIGH YIELD BOND —


181


Centex Corp. 5.125% 1/10/2013 1,520,000 USD 1,330,559 995,600 0.70

Centex Corp. 5.25% 15/6/2015 525,000 USD 446,033 322,875 0.23

Centex Corp. 6.5% 1/5/2016 175,000 USD 157,550 110,250 0.08

Chesapeake Energy Corp. 6.375% 15/6/2015 203,000 USD 203,617 157,325 0.11

Chesapeake Energy Corp. 6.5% 15/8/2017 2,300,000 USD 2,197,895 1,759,500 1.24

Chesapeake Energy Corp. 6.625% 15/1/2016 1,069,000 USD 1,085,039 828,475 0.58

Chesapeake Energy Corp. 7% 15/8/2014 1,151,000 USD 1,193,260 949,575 0.67

Chesapeake Energy Corp. 7.5% 15/6/2014 27,000 USD 27,263 22,748 0.02

CIT Group, Inc. 7.625% 30/11/2012 700,000 USD 694,434 584,095 0.41

Citigroup Capital XXI FRN 21/12/2057 1,000,000 USD 1,051,104 779,091 0.55

Citizens Communications Co. 6.25% 15/1/2013 350,000 USD 339,139 297,500 0.21

Citizens Communications Co. 6.625% 15/3/2015 1,250,000 USD 1,205,674 900,000 0.63

Citizens Communications Co. 9% 15/8/2031 300,000 USD 303,184 186,000 0.13

Citizens Communications Co. 9.25% 15/5/2011 500,000 USD 514,176 472,500 0.33

CMS Energy Corp. 6.875% 15/12/2015 1,000,000 USD 1,000,000 860,000 0.61

Complete Production Services, Inc. 8% 15/12/2016 1,623,000 USD 1,631,286 1,022,490 0.72

Constellation Brands, Inc. 7.25% 1/9/2016 330,000 USD 327,534 308,550 0.22

Constellation Brands, Inc. 7.25% 15/5/2017 2,100,000 USD 2,101,991 1,963,500 1.38

Continental Airlines, Inc. 7.875% 2/7/2018 "RJO3" 355,130 USD 359,480 198,873 0.14

CSC Holdings, Inc. 6.75% 15/4/2012 2,125,000 USD 2,079,493 1,939,063 1.37

CSC Holdings, Inc. 7.625% 1/4/2011 "B" 741,000 USD 743,040 698,393 0.49

CSC Holdings, Inc. 7.625% 15/7/2018 267,000 USD 248,425 206,925 0.15

CSC Holdings, Inc. 7.875% 15/2/2018 292,000 USD 286,569 228,490 0.16

CSC Holdings, Inc. 8.5% 15/6/2015 "144A" 680,000 USD 680,000 598,400 0.42

Delhaize America, Inc. 9% 15/4/2031 754,000 USD 876,587 770,672 0.54

Deluxe Corp. 7.375% 1/6/2015 1,744,000 USD 1,760,038 1,042,040 0.73

Dex Media West LLC/Dex Media Finance Co. 8.5%15/8/2010 "B" 600,000 USD 611,572 360,000 0.25

Dex Media West LLC/Dex Media Finance Co. 9.875%15/8/2013 "B" 1,400,000 USD 1,360,537 332,500 0.23

Dex Media, Inc. 8% 15/11/2013 1,000,000 USD 796,834 185,000 0.13

DirecTV Holdings LLC/DirecTV Financing Co. 6.375%15/6/2015 2,931,000 USD 2,806,391 2,696,520 1.90

DR Horton, Inc. 5.25% 15/2/2015 1,239,000 USD 1,082,233 768,180 0.54

DR Horton, Inc. 5.375% 15/6/2012 378,000 USD 345,102 276,885 0.19

DR Horton, Inc. 6.5% 15/4/2016 1,626,000 USD 1,437,480 1,008,120 0.71

Dynegy Holdings, Inc. 7.75% 1/6/2019 3,033,000 USD 3,000,546 2,092,770 1.47

Echostar DBS Corp. 6.625% 1/10/2014 863,000 USD 847,039 720,605 0.51

Echostar DBS Corp. 7% 1/10/2013 887,000 USD 888,043 769,473 0.54

EchoStar DBS Corp. 7.125% 1/2/2016 1,000,000 USD 820,070 835,000 0.59

Edison Mission Energy 7% 15/5/2017 4,333,000 USD 4,243,954 3,769,710 2.65

El Paso Corp. 6.95% 1/6/2028 1,000,000 USD 652,645 610,000 0.43

El Paso Corp. 7.375% 15/12/2012 "MTN" 500,000 USD 507,203 429,435 0.30

El Paso Corp. 7.75% 15/1/2032 "MTN" 1,728,000 USD 1,777,920 1,131,888 0.80

El Paso Corp. 7.875% 15/6/2012 1,550,000 USD 1,594,164 1,395,000 0.98

El Paso Natural Gas Co. 7.5% 15/11/2026 38,000 USD 37,366 31,702 0.02

El Paso Natural Gas Co. 8.375% 15/6/2032 36,000 USD 38,695 30,528 0.02

First Data Corp. 9.875% 24/9/2015 300,000 USD 289,449 176,250 0.12

Ford Motor Credit Co. LLC 5.7% 15/1/2010 240,000 USD 232,789 201,739 0.14




182


Ford Motor Credit Co. LLC 7% 1/10/2013 210,000 USD 192,608 136,581 0.10

Ford Motor Credit Co. LLC 7.25% 25/10/2011 1,180,000 USD 1,125,904 862,640 0.61


Ford Motor Credit Co. LLC 7.375% 1/2/2011 1,080,000 USD 997,080 809,950 0.57



Freeport-McMoRan Copper & Gold, Inc. 8.25% 1/4/2015 435,000 USD 435,000 361,050 0.25

Freeport-McMoRan Copper & Gold, Inc. 8.375% 1/4/2017 2,522,000 USD 2,469,541 2,055,430 1.45

Freescale Semiconductor, Inc. 8.875% 15/12/2014 3,300,000 USD 2,802,788 1,452,000 1.02

Freescale Semiconductor, Inc. 9.125% 15/12/2014 500,000 USD 481,099 112,500 0.08

Georgia-Pacific LLC 7.7% 15/6/2015 1,583,000 USD 1,542,942 1,226,825 0.86

Georgia-Pacific LLC 8.125% 15/5/2011 760,000 USD 771,559 718,200 0.51

Georgia-Pacific LLC 8.875% 15/5/2031 250,000 USD 230,647 171,250 0.12


Hawker Beechcraft Acquisition Co. LLC/Hawker BeechcraftNotes Co. 8.5% 1/4/2015 1,000,000 USD 1,040,896 410,000 0.29

HCA, Inc./DE 9.125% 15/11/2014 289,000 USD 289,000 267,325 0.19

HCA, Inc./DE 9.25% 15/11/2016 3,320,000 USD 3,457,268 3,037,800 2.14

Hertz Corp. (The) 8.875% 1/1/2014 300,000 USD 275,073 182,250 0.13

Host Hotels & Resorts LP 6.75% 1/6/2016 "Q" 1,650,000 USD 1,622,910 1,167,375 0.82

Huntsman International LLC 7.875% 15/11/2014 300,000 USD 283,488 160,500 0.11

Intelsat Corp. 9.25% 15/8/2014 "144A" 300,000 USD 297,909 273,000 0.19

Intelsat Corp. 9.25% 15/6/2016 "144A" 300,000 USD 295,857 265,500 0.19

KB Home 5.75% 1/2/2014 1,450,000 USD 1,336,551 906,250 0.64

KB Home 6.25% 15/6/2015 460,000 USD 424,560 278,300 0.20

KB Home 6.375% 15/8/2011 135,000 USD 131,665 103,275 0.07

Knight, Inc. 6.5% 1/9/2012 1,633,000 USD 1,625,459 1,379,885 0.97

L-3 Communications Corp. 6.125% 15/7/2013 600,000 USD 589,499 552,000 0.39

L-3 Communications Corp. 6.375% 15/10/2015 "B" 1,000,000 USD 961,772 925,000 0.65

Lamar Media Corp. 6.625% 15/8/2015 1,000,000 USD 963,460 720,000 0.51

Lear Corp. 5.75% 1/8/2014 "B" 2,346,000 USD 2,044,044 868,020 0.61

Lennar Corp. 5.5% 1/9/2014 "B" 500,000 USD 406,695 312,500 0.22

Lennar Corp. 5.6% 31/5/2015 "B" 1,200,000 USD 861,324 726,000 0.51

Lennar Corp. 5.95% 1/3/2013 300,000 USD 259,660 205,500 0.14

Liberty Media LLC 8.25% 1/2/2030 400,000 USD 409,101 231,236 0.16

Lucent Technologies, Inc. 6.45% 15/3/2029 900,000 USD 835,603 360,000 0.25

Mandalay Resort Group 6.375% 15/12/2011 400,000 USD 408,973 280,000 0.20

MarkWest Energy Partners LP/MarkWest Energy FinanceCorp. 8.75% 15/4/2018 "B" 1,633,000 USD 1,703,370 1,012,460 0.71

Meritage Homes Corp. 6.25% 15/3/2015 803,000 USD 739,840 421,575 0.30

Meritage Homes Corp. 7% 1/5/2014 138,000 USD 130,431 77,970 0.05

MGM Mirage 5.875% 27/2/2014 1,000,000 USD 881,860 640,000 0.45

MGM Mirage 6.75% 1/9/2012 1,100,000 USD 800,808 770,000 0.54

MGM Mirage 6.75% 1/4/2013 2,600,000 USD 2,546,813 1,742,000 1.23

Neiman Marcus Group, Inc. (The) 9% 15/10/2015 2,000,000 USD 2,038,797 870,000 0.61

New Albertsons, Inc. 7.25% 1/5/2013 600,000 USD 598,331 507,000 0.36

New Albertsons, Inc. 7.45% 1/8/2029 1,232,000 USD 1,195,524 726,880 0.51

Newfield Exploration Co. 6.625% 1/9/2014 500,000 USD 510,646 410,000 0.29

NewPage Corp. 10% 1/5/2012 1,020,000 USD 1,081,018 448,800 0.32




183


Nextel Communications, Inc. 5.95% 15/3/2014 729,000 USD 595,116 295,245 0.21

Nextel Communications, Inc. 6.875% 31/10/2013 "E" 921,000 USD 768,213 382,215 0.27

Omnicare, Inc. 6.875% 15/12/2015 476,000 USD 477,947 390,320 0.27

Owens Brockway Glass Container, Inc. 8.25% 15/5/2013 1,000,000 USD 1,018,095 985,000 0.69

PetroHawk Energy Corp. 7.875% 1/6/2015 "144A" 2,000,000 USD 1,673,916 1,480,000 1.04

Pioneer Natural Resources Co. 6.65% 15/3/2017 500,000 USD 494,263 360,000 0.25

Pioneer Natural Resources Co. 6.875% 1/5/2018 1,000,000 USD 978,917 706,308 0.50

Plains Exploration & Production Co. 7% 15/3/2017 159,000 USD 159,000 108,915 0.08

Plains Exploration & Production Co. 7.625% 1/6/2018 1,601,000 USD 1,617,091 1,096,685 0.77

Pulte Homes, Inc. 5.25% 15/1/2014 4,000,000 USD 3,454,727 2,840,000 2.00

Quicksilver Resources, Inc. 8.25% 1/8/2015 1,000,000 USD 728,596 635,000 0.45

Qwest Capital Funding, Inc. 6.875% 15/7/2028 500,000 USD 417,733 300,000 0.21

Qwest Communications International, Inc. 7.25%15/2/2011 300,000 USD 303,521 252,000 0.18

Qwest Communications International, Inc. 7.5%15/2/2014 1,030,000 USD 1,005,059 721,000 0.51

Qwest Corp. 7.25% 15/10/2035 1,000,000 USD 890,074 595,000 0.42

Qwest Corp. 7.875% 1/9/2011 600,000 USD 615,374 537,000 0.38

Qwest Corp. 8.875% 15/3/2012 875,000 USD 912,418 791,875 0.56

Range Resources Corp. 7.25% 1/5/2018 1,096,000 USD 1,116,881 915,160 0.64

Salton Sea Funding Corp. 7.84% 30/5/2010 "C" 317,223 USD 316,129 306,907 0.22

Sanmina-SCI Corp. 8.125% 1/3/2016 1,000,000 USD 942,529 380,000 0.27

Service Corporation International (US) 6.75% 1/4/2016 1,250,000 USD 1,225,632 950,000 0.67

Sithe/Independence Funding Corp. 9% 30/12/2013 "A" 807,529 USD 852,279 687,045 0.48

Smithfield Foods, Inc. 7% 1/8/2011 250,000 USD 247,591 175,000 0.12

Smithfield Foods, Inc. 7.75% 1/7/2017 250,000 USD 244,837 140,000 0.10

Smithfield Foods, Inc. 7.75% 15/5/2013 "B" 1,000,000 USD 1,008,626 640,000 0.45

Southern Natural Gas Co. 8% 1/3/2032 154,000 USD 154,715 126,677 0.09

Sprint Capital Corp. 6.875% 15/11/2028 3,058,000 USD 2,247,413 1,773,640 1.25

Sprint Nextel Corp. 6% 1/12/2016 2,826,000 USD 2,443,196 1,921,680 1.35

Sprint Nextel Corp. 9.25% 15/4/2022 755,000 USD 726,366 490,750 0.35

Standard Pacific Corp. 6.25% 1/4/2014 828,000 USD 770,412 438,840 0.31




Tennessee Gas Pipeline Co. 8.375% 15/6/2032 300,000 USD 319,023 254,402 0.18

Tesoro Corp. 6.5% 1/6/2017 1,900,000 USD 1,755,455 1,042,625 0.73

Ticketmaster Entertainment, Inc. 10.75% 1/8/2016 "144A" 450,000 USD 450,000 238,500 0.17

Transcontinental Gas Pipe Line Corp. 6.4% 15/4/2016 116,000 USD 116,000 108,276 0.08

TRW Automotive, Inc. 7% 15/3/2014 "144A" 500,000 USD 477,152 265,000 0.19

TRW Automotive, Inc. 7.25% 15/3/2017 "144A" 849,000 USD 826,740 432,990 0.30

Unisys Corp. 8% 15/10/2012 3,100,000 USD 2,848,983 868,000 0.61

United Rentals North America, Inc. 6.5% 15/2/2012 1,300,000 USD 1,268,480 1,014,000 0.71

Universal City Development Partners 11.75% 1/4/2010 1,346,000 USD 1,392,843 854,710 0.60

Unum Group 7.625% 1/3/2011 142,000 USD 144,619 140,218 0.10

Valassis Communications, Inc. 8.25% 1/3/2015 854,000 USD 853,074 222,040 0.16

Wells Fargo Capital XV FRN Perpetual (Pref ) 1,940,000 USD 1,885,687 1,930,300 1.36

Williams Partners LP/Williams Partners Finance Corp. 7.25%1/2/2017 1,187,000 USD 1,241,347 937,730 0.66




184


Windstream Corp. 8.625% 1/8/2016 2,053,000 USD 2,146,020 1,816,905 1.28

Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 6.625%1/12/2014 2,200,000 USD 1,893,537 1,644,500 1.16

Xerox Corp. 7.2% 1/4/2016 "MTN" 300,000 USD 302,356 225,845 0.16

149,458,945 111,396,909 78.42

TOTAL BONDS 164,157,718 121,778,394 85.73

MUTUAL FUNDS





UNLISTED SECURITIES

BONDS

CANADA

Bombardier, Inc. 7.45% 1/5/2034 "144A" 667,000 USD 647,079 420,210 0.29


Energy Future Holdings Corp. 10.875% 1/11/2017 "144A" 4,000,000 USD 4,203,333 2,760,000 1.94

Georgia-Pacific LLC 7% 15/1/2015 "144A" 333,000 USD 332,813 276,390 0.20

Ipalco Enterprises, Inc. 7.25% 1/4/2016 "144A" 134,000 USD 132,209 109,880 0.08

Liberty Mutual Group, Inc. 7.8% 15/3/2037 "144A" 2,175,000 USD 2,033,846 982,491 0.69

Shingle Springs Tribal Gaming Authority 9.375%15/6/2015 "144A" 1,000,000 USD 845,979 470,000 0.33

7,548,180 4,598,761 3.24








185



BONDS

CANADACanadian Natural Resources Ltd 5.7% 15/5/2017 330,000 USD 329,252 290,769 0.37Canadian Natural Resources Ltd 6.25% 15/3/2038 620,000 USD 610,418 493,678 0.64Husky Energy, Inc. 6.8% 15/9/2037 390,000 USD 389,425 329,055 0.42Inco Ltd 7.75% 15/5/2012 880,000 USD 952,168 863,991 1.11Nexen, Inc. 6.4% 15/5/2037 1,020,000 USD 994,309 808,260 1.04Petro-Canada 6.05% 15/5/2018 236,000 USD 235,622 196,621 0.25Rogers Communications, Inc. 6.8% 15/8/2018 600,000 USD 599,161 613,134 0.79Suncor Energy, Inc. 6.1% 1/6/2018 576,000 USD 575,364 501,839 0.65Suncor Energy, Inc. 6.85% 1/6/2039 328,000 USD 326,120 264,178 0.34TransCanada Pipelines Ltd 7.25% 15/8/2038 417,000 USD 416,843 420,772 0.54Xstrata Finance Canada Ltd 5.8% 15/11/2016 "144A" 550,000 USD 549,115 350,309 0.45

5,977,797 5,132,606 6.60

FRANCEAXA SA 8.6% 15/12/2030 380,000 USD 460,937 250,800 0.33

LUXEMBOURGTelecom Italia Capital SA 6.2% 18/7/2011 640,000 USD 644,849 568,000 0.73Telecom Italia Capital SA 7.2% 18/7/2036 270,000 USD 282,280 205,538 0.26Telecom Italia Capital SA 7.721% 4/6/2038 440,000 USD 440,000 361,350 0.47

1,367,129 1,134,888 1.46

NETHERLANDSDeutsche Telekom International Finance BV 5.875%20/8/2013 300,000 USD 299,548 297,718 0.38Deutsche Telekom International Finance BV 6.75%20/8/2018 600,000 USD 599,913 615,335 0.79

899,461 913,053 1.17

QATARRas Laffan Liquefied Natural Gas Co., Ltd III 5.832%30/9/2016 "144A" 570,000 USD 570,776 422,507 0.54Ras Laffan Liquefied Natural Gas Co., Ltd III 5.838%30/9/2027 "144A" 180,000 USD 180,117 109,984 0.14

750,893 532,491 0.68

SPAINTelefonica Emisiones SAU 5.855% 4/2/2013 1,090,000 USD 1,090,000 1,062,654 1.36Telefonica Emisiones SAU 7.045% 20/6/2036 370,000 USD 396,187 409,669 0.53

1,486,187 1,472,323 1.89

SWITZERLANDCredit Suisse Guernsey Ltd FRN Perpetual 670,000 USD 670,000 315,349 0.41


— US INVESTMENT GRADE BOND —


186


UNITED ARAB EMIRATESAbu Dhabi National Energy Co. 7.25% 1/8/2018 "144A" 722,000 USD 720,930 625,783 0.81

UNITED KINGDOMBarclays Bank PLC FRN Perpetual "144A" 670,000 USD 683,759 248,188 0.32BAT International Finance PLC 9.5%15/11/2018 "144A" 225,000 USD 222,902 252,772 0.32British Sky Broadcasting Group PLC 6.1%15/2/2018 "144A" 325,000 USD 324,672 269,693 0.35BSKYB Finance UK PLC 5.625% 15/10/2015 "144A" 480,000 USD 473,716 407,523 0.52HBOS PLC FRN Perpetual "144A" 310,000 USD 310,000 121,031 0.16HSBC Holdings PLC 6.5% 2/5/2036 270,000 USD 294,259 278,040 0.36HSBC Holdings PLC 6.8% 1/6/2038 360,000 USD 359,235 385,956 0.50SABMiller PLC 5.7% 15/1/2014 "144A" 1,000,000 USD 998,391 925,512 1.19

3,666,934 2,888,715 3.72

UNITED STATES OF AMERICAAltria Group, Inc. 9.95% 10/11/2038 360,000 USD 351,794 396,382 0.50AMBAC Financial Group, Inc. FRN 7/2/2087 1,135,000 USD 690,519 113,686 0.15American Express Credit Corp. 5.875%2/5/2013 "MTN" 450,000 USD 448,642 433,430 0.56American General Finance Corp. 4.625%15/5/2009 "MTNI" 440,000 USD 345,556 376,945 0.48American General Finance Corp. 5.2% 15/12/2011 "MTN" 560,000 USD 559,742 238,046 0.31American General Finance Corp. 5.375%1/9/2009 "MTNG" 300,000 USD 244,024 214,215 0.28American General Finance Corp. 5.625% 17/8/2011 "MTN" 260,000 USD 114,708 119,686 0.15American General Finance Corp. 6.9% 15/12/2017 "MTN" 1,168,000 USD 639,577 508,950 0.65American General Finance Corp. FRN 17/8/2011 "MTN" 575,000 USD 232,951 220,176 0.28American International Group, Inc. FRN 20/3/2012 "MTN" 740,000 USD 740,000 463,302 0.60Anadarko Petroleum Corp. 6.45% 15/9/2036 530,000 USD 534,932 423,256 0.54Appalachian Power Co. 5.55% 1/4/2011 530,000 USD 529,553 525,956 0.68Appalachian Power Co. 6.7% 15/8/2037 "P" 620,000 USD 619,851 584,353 0.75Appalachian Power Co. 7% 1/4/2038 400,000 USD 397,429 401,181 0.52Assurant, Inc. 5.625% 15/2/2014 770,000 USD 773,267 587,321 0.76BAC Capital Trust XI 6.625% 23/5/2036 220,000 USD 237,527 206,059 0.27BAC Capital Trust XIV FRN Perpetual 840,000 USD 840,243 336,973 0.43Baltimore Gas & Electric Co. 6.125% 1/7/2013 833,000 USD 832,926 773,152 0.99Baltimore Gas & Electric Co. 6.35% 1/10/2036 190,000 USD 189,771 158,416 0.20Bank of America Corp. 5.65% 1/5/2018 650,000 USD 646,756 662,837 0.85Bank of America Corp. FRN Perpetual 838,000 USD 838,000 603,042 0.78BMC Software, Inc. 7.25% 1/6/2018 520,000 USD 517,094 500,130 0.64Brandywine Operating Partnership LP 5.7% 1/5/2017 100,000 USD 87,928 53,273 0.07Bunge NA Finance LP 5.9% 1/4/2017 600,000 USD 592,958 440,373 0.57Cellco Partnership 8.5% 15/11/2018 "144A" 563,000 USD 557,073 662,463 0.85CenterPoint Energy Houston Electric LLC 6.95%15/3/2033 "K2" 220,000 USD 235,058 204,818 0.26Chubb Corp. FRN 29/3/2067 300,000 USD 189,068 187,726 0.24CIT Group, Inc. 5.65% 13/2/2017 410,000 USD 343,869 287,430 0.37CIT Group, Inc. 5.8% 28/7/2011 640,000 USD 582,958 536,585 0.69Citigroup Capital XXI FRN 21/12/2057 435,000 USD 433,974 338,905 0.44




187


Citigroup, Inc. 5% 15/9/2014 370,000 USD 371,692 326,949 0.42Citigroup, Inc. FRN Perpetual (Pref ) 750,000 USD 637,882 484,132 0.62Comcast Cable Communications Holdings, Inc. 9.455%15/11/2022 410,000 USD 529,976 465,334 0.60Comcast Corp. 6.3% 15/11/2017 370,000 USD 369,228 364,086 0.47Comcast Corp. 6.5% 15/11/2035 170,000 USD 169,621 171,605 0.22Commonwealth Edison Co. 5.8% 15/3/2018 733,000 USD 731,704 669,873 0.86Commonwealth Edison Co. 6.15% 15/9/2017 460,000 USD 458,873 432,261 0.56Consumers Energy Co. 5% 15/2/2012 "O" 180,000 USD 179,920 176,373 0.23Consumers Energy Co. 5.65% 15/9/2018 500,000 USD 498,232 485,833 0.62Consumers Energy Co. 5.65% 15/4/2020 160,000 USD 159,526 151,812 0.20Continental Airlines, Inc. 6.703% 15/6/2021 "01A1" 512,461 USD 506,156 384,345 0.49CRH America, Inc. 6% 30/9/2016 220,000 USD 220,293 138,131 0.18CRH America, Inc. 8.125% 15/7/2018 350,000 USD 349,877 254,774 0.33CSX Corp. 5.75% 15/3/2013 740,000 USD 738,542 697,574 0.90CVS Pass-Through Trust 6.036% 10/12/2028 "144A" 1,859,709 USD 1,859,743 1,141,787 1.47Dr Pepper Snapple Group, Inc. 6.82% 1/5/2018 "144A" 200,000 USD 199,972 199,158 0.26Duke Realty LP 6.25% 15/5/2013 1,000,000 USD 999,426 690,381 0.89Enbridge Energy Partners LP 7.5% 15/4/2038 "B" 306,000 USD 305,138 241,469 0.31Enbridge Energy Partners LP 9.875% 1/3/2019 500,000 USD 499,701 508,380 0.65Energy Transfer Partners LP 7.5% 1/7/2038 348,000 USD 344,459 274,722 0.35Enterprise Products Operating LLC 5.65% 1/4/2013 1,000,000 USD 999,201 909,749 1.17Enterprise Products Operating LLC 9.75% 31/1/2014 300,000 USD 300,000 306,591 0.39Exelon Generation Co. LLC 6.95% 15/6/2011 290,000 USD 295,907 282,009 0.36Financial Security Assurance Holdings Ltd FRN15/12/2066 "144A" 610,000 USD 618,081 123,520 0.16Fiserv, Inc. 6.125% 20/11/2012 550,000 USD 549,799 518,294 0.67Fiserv, Inc. 6.8% 20/11/2017 290,000 USD 289,152 259,170 0.33FPL Energy National Wind 5.608% 10/3/2024 "144A" 383,900 USD 387,423 305,649 0.39General Electric Capital Corp. FRN 15/11/2067 850,000 USD 850,000 539,335 0.69General Mills, Inc. 5.2% 17/3/2015 818,000 USD 816,363 804,480 1.03Goldman Sachs Group, Inc. (The) 5.15% 15/1/2014 400,000 USD 343,003 357,770 0.46Hartford Financial Services Group, Inc. FRN 15/6/2038 500,000 USD 499,628 265,420 0.34Humana, Inc. 6.3% 1/8/2018 550,000 USD 557,303 415,821 0.53International Lease Finance Corp. 4.75% 1/7/2009 1,000,000 USD 906,667 930,584 1.20International Lease Finance Corp. 4.75% 13/1/2012 100,000 USD 71,305 70,015 0.09JC Penney Corp., Inc. 6.375% 15/10/2036 190,000 USD 187,661 116,195 0.15Jersey Central Power & Light Co. 6.4% 15/5/2036 370,000 USD 367,950 314,470 0.40JP Morgan Chase Capital XXV 6.8% 1/10/2037 "Y" 280,000 USD 278,434 261,479 0.34JPMorgan Chase & Co. FRN Perpetual "1" (Pref ) 860,000 USD 751,345 714,411 0.92Kansas City Power & Light Co. 6.375% 1/3/2018 667,000 USD 667,000 637,399 0.82Keycorp 6.5% 14/5/2013 "MTN" 750,000 USD 747,310 693,679 0.89Kinder Morgan Energy Partners LP 6.95%15/1/2038 "MTN" 425,000 USD 425,383 347,847 0.45Kraft Foods, Inc. 6.75% 19/2/2014 194,000 USD 193,800 202,126 0.26Kroger Co. (The) 7.5% 1/4/2031 140,000 USD 145,455 156,502 0.20Magellan Midstream Partners LP 6.4% 1/5/2037 130,000 USD 129,460 105,941 0.14Medco Health Solutions, Inc. 6.125% 15/3/2013 750,000 USD 746,377 701,620 0.90Merrill Lynch & Co., Inc. 7.75% 14/5/2038 375,000 USD 374,916 413,637 0.53Metlife Capital Trust IV 7.875% 15/12/2037 "144A" 300,000 USD 297,287 189,900 0.24MetLife, Inc. 6.817% 15/8/2018 "A" 470,000 USD 471,582 451,962 0.58Morgan Stanley 5.95% 28/12/2017 "MTN" 469,000 USD 467,809 392,847 0.51




188


Morgan Stanley 6.625% 1/4/2018 "MTN" 336,000 USD 345,170 297,497 0.38Motorola, Inc. 6.625% 15/11/2037 425,000 USD 327,001 199,750 0.26News America, Inc. 6.65% 15/11/2037 700,000 USD 692,091 702,612 0.90Nisource Finance Corp. 7.875% 15/11/2010 290,000 USD 307,999 265,433 0.34Nustar Logistics 7.65% 15/4/2018 800,000 USD 798,534 739,935 0.95Panhandle Eastern Pipeline Co. 6.2% 1/11/2017 840,000 USD 838,082 651,937 0.84Pemex Project Funding Master Trust 7.375% 15/12/2014 600,000 USD 616,047 612,822 0.79Principal Financial Group, Inc. 6.05% 15/10/2036 180,000 USD 178,905 122,751 0.16Principal Life Income Funding Trusts 5.3%24/4/2013 "MTN" 435,000 USD 434,319 408,837 0.53Prudential Financial, Inc. 6% 1/12/2017 "MTN" 400,000 USD 397,704 323,783 0.42Quest Diagnostics, Inc. 6.95% 1/7/2037 330,000 USD 326,527 285,751 0.37RBS Capital Trust I FRN Perpetual 560,000 USD 534,022 218,467 0.28Realty Income Corp. 5.5% 15/11/2015 560,000 USD 558,304 441,576 0.57Safeway, Inc. 6.25% 15/3/2014 487,000 USD 484,764 491,514 0.63SLM Corp. 4% 15/1/2010 700,000 USD 658,727 633,555 0.81TEPPCO Partners LP 7.55% 15/4/2038 375,000 USD 372,994 283,599 0.36Time Warner Cable, Inc. 5.4% 2/7/2012 480,000 USD 479,406 449,333 0.58Time Warner Cable, Inc. 6.75% 1/7/2018 470,000 USD 469,631 457,546 0.59Time Warner, Inc. 5.5% 15/11/2011 560,000 USD 559,836 527,283 0.68Time Warner, Inc. 6.5% 15/11/2036 220,000 USD 220,972 202,182 0.26Time Warner, Inc. 6.875% 1/5/2012 430,000 USD 448,523 414,084 0.53Time Warner, Inc. 7.7% 1/5/2032 820,000 USD 860,247 831,008 1.07Travelers Property Casualty Corp. 5% 15/3/2013 770,000 USD 760,284 730,863 0.94Union Electric Co. 5.3% 1/8/2037 420,000 USD 418,730 288,944 0.37Union Pacific Corp. 7.125% 1/2/2028 320,000 USD 372,378 323,874 0.42UnitedHealth Group, Inc. 6.875% 15/2/2038 500,000 USD 492,605 443,410 0.57Valero Energy Corp. 6.125% 15/6/2017 300,000 USD 299,770 258,189 0.33Valero Energy Corp. 6.625% 15/6/2037 220,000 USD 212,695 163,692 0.21Verizon Communications, Inc. 6.4% 15/2/2038 550,000 USD 544,936 594,044 0.76Virginia Electric and Power Co. 8.875% 15/11/2038 170,000 USD 169,991 218,118 0.28Wachovia Corp. 5.7% 1/8/2013 "MTN" 580,000 USD 579,241 564,631 0.73Waste Management, Inc. (Old) 7.1% 1/8/2026 270,000 USD 302,700 226,667 0.29Wells Fargo & Co. FRN Perpetual "K" (Pref ) 650,000 USD 505,415 548,308 0.71Wells Fargo Capital XIII FRN Perpetual "GMTN" 1,738,000 USD 1,676,417 1,438,299 1.85WR Berkley Corp. 5.125% 30/9/2010 580,000 USD 578,106 511,202 0.66WR Berkley Corp. 6.15% 15/8/2019 320,000 USD 318,575 259,825 0.33Xerox Corp. 5.5% 15/5/2012 840,000 USD 838,536 667,674 0.86XTO Energy, Inc. 6.75% 1/8/2037 819,000 USD 794,829 777,375 1.00

57,988,323 49,182,838 63.24

TOTAL BONDS 73,988,591 62,448,846 80.31

SECURITISED ASSETS

UNITED STATES OF AMERICABanc of America Commercial Mortgage, Inc. FRN 10/5/2045 350,000 USD 211,907 281,127 0.36Bank One Issuance Trust 4.77% 16/2/2016 "2003-C3 C3" 750,000 USD 737,848 365,783 0.47Bear Stearns Commercial Mortgage Securities 5.201%11/12/2038 "2006-PW14 A4 800,000 USD 748,758 641,818 0.83Bear Stearns Commercial Mortgage Securities FRN11/9/2038 "2006-PW12 A4" 800,000 USD 468,715 631,378 0.81




189


Bear Stearns Commercial Mortgage Securities FRN13/8/2039 "2003-T12 A4" 340,000 USD 324,415 301,718 0.39Citigroup Commercial Mortgage Trust FRN15/3/2049 "2006-C4 A3" 500,000 USD 480,248 385,634 0.50Commercial Mortgage Pass Through Certificates FRN10/6/2046 "2006-C7 A4" 750,000 USD 722,621 601,191 0.77Credit Suisse Mortgage Capital Certificates FRN 15/6/2039 400,000 USD 328,439 170,702 0.22CS First Boston Mortgage Securities Corp.FRN 15/7/2036 "2004-C3 A5" 800,000 USD 799,879 673,122 0.87Ge Capital Commercial Mortgage Corp. FRN10/6/2048 "2005-C1 A5" 1,000,000 USD 957,453 804,083 1.03GS Mortgage Securities Corp II FRN10/4/2038 "2006-GG6 A4" 750,000 USD 713,428 597,494 0.77JP Morgan Chase Commercial Mortgage Securities Corp.FRN 15/12/2044 "2005-LDP5 A4" 1,500,000 USD 1,491,484 1,182,895 1.52JP Morgan Chase Commercial Mortgage Securities Corp.FRN 12/2/2049 "2007-CB19 AM" 500,000 USD 464,549 225,369 0.29MBNA Credit Card Master Note Trust 4.45%15/8/2016 "2004-B1 B1" 375,000 USD 351,539 217,303 0.28Merrill Lynch Mortgage Trust FRN12/11/2035 "2003-KEY1 A4" 1,100,000 USD 1,140,438 952,965 1.23Morgan Stanley Capital I FRN 12/7/2044 "2006-HQ9 A4" 1,100,000 USD 1,109,454 837,637 1.08Morgan Stanley Capital I FRN12/12/2049 "2007-IQ16 AM" 200,000 USD 186,436 90,735 0.12Wachovia Bank Commercial Mortgage Trust 4.867%15/2/2035 660,000 USD 639,725 577,690 0.74


MUTUAL FUNDS

UNITED STATES OF AMERICABank of New York Mellon Liquidity "B" 157,826 USD 157,826 157,826 0.20



UNLISTED SECURITIES

BONDS

UNITED STATES OF AMERICACargill, Inc. 6.625% 15/9/2037 "144A" 290,000 USD 289,351 246,212 0.32Erac USA Finance Co. 7% 15/10/2037 "144A" 480,000 USD 476,013 272,129 0.35MetLife Capital Trust X FRN 8/4/2038 "144A" 300,000 USD 300,000 211,044 0.27Monongahela Power Co. 7.95% 15/12/2013 "144A" 400,000 USD 399,197 401,357 0.52




190


NGPL PipeCo LLC 6.514% 15/12/2012 "144A" 600,000 USD 600,000 571,001 0.73NGPL PipeCo LLC 7.768% 15/12/2037 "144A" 450,000 USD 465,101 370,702 0.48Sovereign Bank 8.75% 30/5/2018 250,000 USD 220,540 249,506 0.32








191



SHARES

VIETNAM

An Giang Fisheries Import & Export JSC 95,100 VND 452,530 81,594 1.44

Corp For Financing and Promoting Technology 62,370 VND 663,492 178,373 3.15

DHG Pharmaceutical JSC 60,160 VND 727,718 409,486 7.23

Domesco Medical Import Export JSC 46,700 VND 403,107 134,894 2.38

Dong Phu Rubber JSC 41,600 VND 228,374 72,335 1.28

GEMADEPT Corp. 219,910 VND 683,726 377,355 6.66

Hoa Binh Construction and Real Estate Corp. 2 VND 2 2 0.00

KinhDo Corp. 143,240 VND 999,771 246,612 4.36

Minh Phu Seafood Joint Stock Co. 316,600 VND 861,056 208,254 3.68

Namviet Corp. 73,600 VND 288,802 79,144 1.40

North Kinhdo Food Joint Stock Co. 156,727 VND 917,935 229,492 4.05

PetroVietnam Drilling and Well Services Joint Stock Co. 97,528 VND 750,019 474,168 8.37

Petrovietnam Fertilizer & Chemical JSC 122,600 VND 569,612 241,932 4.27

Pha Lai Thermal Power 208,900 VND 553,671 223,442 3.95

Saigon Securities, Inc. 37,500 VND 387,909 61,774 1.09Songda Urban & Industrial Zone Investment and DevelopmentJoint Stock Co. 46,500 VND 630,970 143,625 2.54

Tan Tao Industrial Park Corp. 165,169 VND 760,076 254,135 4.49

Tan Tien Plastic Packaging Joint Stock Co. 252,230 VND 813,416 246,704 4.36

Thu Duc Housing Development Corp. 133,850 VND 664,491 219,728 3.88

Tien Phong Plastic JSC 69,700 VND 456,940 143,921 2.54

Tu Liem Urban Development JSC 20,600 VND 73,248 39,355 0.70

Tuong An Vegetable Oil Joint Stock Co. 42,700 VND 284,720 57,640 1.02

Viet Nam Dairy Products JSC 106,320 VND 1,037,620 504,751 8.91

Vinh Son – Song Hinh Hydropower Joint Stock Co. 226,700 VND 680,468 363,073 6.41


UNLISTED SECURITIES

SHARES

VIETNAM

Bank for Foreign Trade of Vietnam (The) 85,000 VND 595,452 145,046 2.56






— VIETNAM EQUITY —


192



SHARES & RIGHTS

AUSTRALIAAristocrat Leisure Ltd 71,895 AUD 682,338 193,233 0.09Australia & New Zealand Banking Group Ltd 51,720 AUD 838,540 547,793 0.26Australian Infrastructure Fund 150,891 AUD 350,469 198,594 0.09BHP Billiton Ltd 39,480 AUD 470,084 832,476 0.39Brambles Ltd 22,600 AUD 156,834 116,162 0.05Foster's Group Ltd 117,987 AUD 531,285 449,518 0.21Macquarie Group Ltd 7,017 AUD 362,804 140,038 0.07Macquarie Media Group Ltd 185,083 AUD 413,376 124,362 0.06Metcash Ltd 81,826 AUD 253,674 248,265 0.12National Australia Bank Ltd 14,642 AUD 228,849 211,677 0.10Origin Energy Ltd 43,386 AUD 309,206 484,468 0.23PrimeAg Australia Ltd 138,190 AUD 237,453 121,571 0.06QBE Insurance Group Ltd 15,750 AUD 210,191 281,591 0.13Rio Tinto Ltd 12,849 AUD 722,725 338,223 0.16Suncorp-Metway Ltd 53,079 AUD 721,193 308,853 0.14Telstra Corp., Ltd 132,306 AUD 475,171 351,017 0.16Westpac Banking Corp. 5,689 AUD 59,857 66,876 0.03

7,024,049 5,014,717 2.35

AUSTRIATelekom Austria AG 43,217 EUR 875,431 627,528 0.29

BELGIUMGroupe Bruxelles Lambert SA 4,531 EUR 344,517 373,832 0.17Solvay SA "A" 5,853 EUR 828,008 452,622 0.21Tessenderlo Chemie NV 14,908 EUR 610,606 462,363 0.22

1,783,131 1,288,817 0.60

BERMUDATyco Electronics Ltd 5,675 USD 189,633 90,630 0.04

FINLANDNokia OYJ 43,403 EUR 636,644 679,179 0.32

FRANCEBNP Paribas 22,565 EUR 1,768,645 964,667 0.45Publicis Groupe 31,390 EUR 1,065,844 811,581 0.38Sanofi-Aventis SA 40,859 EUR 3,594,820 2,669,800 1.25Societe BIC SA 3,108 EUR 149,459 183,059 0.09Total SA 67,674 EUR 4,594,744 3,799,911 1.78Valeo SA 28,135 EUR 1,225,947 415,274 0.19Vivendi 101,029 EUR 3,540,273 3,369,784 1.57

15,939,732 12,214,076 5.71

GERMANYAllianz SE (Reg) 19,376 EUR 3,008,152 2,045,913 0.96Bayerische Motoren Werke AG 38,848 EUR 1,828,955 1,203,206 0.56


— WORLD VALUE EQUITY —


193


Commerzbank AG 31,318 EUR 729,279 297,133 0.14Daimler AG (Reg) 39,047 EUR 2,841,121 1,453,225 0.68Deutsche Bank AG (Reg) 8,021 EUR 1,061,186 317,291 0.15Deutsche Telekom AG 81,598 EUR 1,490,471 1,234,299 0.58E.ON AG 73,239 EUR 2,197,650 2,893,022 1.35Muenchener Rueckversicherungs AG (Reg) 12,816 EUR 2,280,924 1,979,275 0.92RWE AG 21,506 EUR 2,832,481 1,920,041 0.90Siemens AG 19,928 EUR 1,698,977 1,483,053 0.69

19,969,196 14,826,458 6.93

GREECEOPAP SA 52,277 EUR 1,948,512 1,611,024 0.75Public Power Corporation SA 49,322 EUR 1,555,694 830,207 0.39Titan Cement Co. SA 18,480 EUR 607,037 364,209 0.17

4,111,243 2,805,440 1.31

HONG KONGAAC Acoustic Technologies Holdings, Inc. 486,000 HKD 159,951 218,228 0.10BOC Hong Kong Holdings Ltd 199,000 HKD 544,533 225,446 0.11Cheung Kong Holdings Ltd 37,000 HKD 495,270 349,946 0.16Link REIT (The) – REIT 138,000 HKD 333,547 227,921 0.11NWS Holdings Ltd 196,000 HKD 483,541 291,849 0.14Swire Pacific Ltd "A" 41,355 HKD 311,484 284,681 0.13

2,328,326 1,598,071 0.75

IRELANDAER Lingus 210,536 EUR 938,685 445,204 0.21

ITALYENI SpA 51,570 EUR 1,928,647 1,217,009 0.57Intesa Sanpaolo SpA 474,202 EUR 2,793,161 1,696,331 0.79

4,721,808 2,913,340 1.36

JAPANAdvantest Corp. 19,000 JPY 378,405 301,169 0.14Ajinomoto Co., Inc. 92,000 JPY 1,008,733 990,212 0.46Arrk Corp. 109,700 JPY 883,253 153,214 0.07Asahi Kasei Corp. 128,000 JPY 631,913 553,345 0.26Bridgestone Corp. 36,700 JPY 691,350 539,831 0.25Chiyoda Corp. 71,000 JPY 443,698 384,847 0.18Credit Saison Co., Ltd 55,900 JPY 899,136 754,091 0.35Daiichi Sankyo Co., Ltd 18,100 JPY 410,328 421,327 0.20Denso Corp. 22,800 JPY 381,587 371,512 0.17East Japan Railway Co. 39 JPY 309,935 297,855 0.14Ebara Corp. 131,000 JPY 484,445 297,678 0.14Fuji Seal International, Inc. 6,100 JPY 126,595 97,232 0.05Fuji Television Network, Inc. 411 JPY 816,901 583,596 0.27FUJIFILM Holdings Corp. 11,900 JPY 427,404 257,219 0.12Fujitsu Ltd 42,000 JPY 184,676 199,723 0.09Funai Electric Co., Ltd 10,200 JPY 167,587 207,471 0.10JS Group Corp. 30,400 JPY 572,925 465,022 0.22Kaneka Corp. 157,000 JPY 1,223,274 991,964 0.46Keyence Corp. 2,600 JPY 575,366 524,525 0.24




194


Koei Co., Ltd 23,900 JPY 342,461 248,762 0.12Komeri Co., Ltd 10,400 JPY 271,250 250,158 0.12Lintec Corp. 20,200 JPY 373,580 275,633 0.13Meitec Corp. 10,300 JPY 353,247 176,053 0.08Mitsubishi Corp. 23,900 JPY 252,018 327,974 0.15Mitsubishi Estate Co., Ltd 17,000 JPY 221,619 272,671 0.13Mitsubishi UFJ Financial Group, Inc. 276,900 JPY 2,341,831 1,685,064 0.79NEC Corp. 156,000 JPY 891,082 513,573 0.24Nippon Oil Corp. 20,000 JPY 109,890 99,097 0.05Nippon Yusen KK 39,000 JPY 182,317 235,604 0.11Nissan Motor Co., Ltd 132,500 JPY 1,350,888 469,988 0.22NOK Corp. 40,900 JPY 753,266 284,258 0.13NTT DoCoMo, Inc. 466 JPY 766,355 911,183 0.43Obic Co., Ltd 2,940 JPY 565,570 475,471 0.22OJI Paper Co., Ltd 42,000 JPY 225,160 244,416 0.11Onward Holdings Co., Ltd 53,000 JPY 699,675 414,765 0.19ORIX Corp. 6,270 JPY 950,634 346,808 0.16Ricoh Co., Ltd 8,000 JPY 173,554 99,673 0.05Rohm Co., Ltd 18,000 JPY 1,315,874 897,855 0.42Sato Corp. 16,100 JPY 204,809 180,604 0.08Seven & I Holdings Co., Ltd 22,100 JPY 663,822 747,159 0.35SMC Corp/Japan 4,600 JPY 580,057 464,003 0.22Sompo Japan Insurance, Inc. 95,000 JPY 1,060,598 679,211 0.32Sony Corp. 44,000 JPY 1,660,061 937,405 0.44Sumisho Computer Systems Corp. 31,300 JPY 600,643 513,484 0.24Sumitomo Bakelite Co., Ltd 38,000 JPY 249,036 151,638 0.07Sumitomo Corp. 32,700 JPY 325,637 282,725 0.13Sumitomo Electric Industries Ltd 25,000 JPY 369,444 188,993 0.09Sumitomo Forestry Co., Ltd 63,300 JPY 587,365 508,000 0.24Sumitomo Mitsui Financial Group, Inc. 275 JPY 2,024,724 1,146,151 0.54Sumitomo Trust & Banking Co., Ltd (The) 105,000 JPY 706,187 600,565 0.28Takeda Pharmaceutical Co., Ltd 16,200 JPY 784,035 833,209 0.39Toppan Forms Co., Ltd 36,600 JPY 412,505 463,712 0.22Toyota Motor Corp. 13,500 JPY 619,110 434,711 0.20United Arrows Ltd 24,000 JPY 163,903 183,561 0.09Yamaha Motor Co., Ltd 52,900 JPY 543,941 546,503 0.26

34,313,659 25,482,473 11.92

LUXEMBOURGReinet Investments SCA 36,680 EUR 313,269 364,035 0.17

NETHERLANDSAkzo Nobel NV 23,262 EUR 1,152,972 981,839 0.46Heineken Holding NV 11,171 EUR 306,274 326,226 0.15Heineken NV 29,741 EUR 823,330 916,531 0.43Koninklijke KPN NV 71,225 EUR 615,887 1,060,824 0.50Koninklijke Wessanen NV – CVA 139,963 EUR 2,097,946 911,584 0.42TNT NV 116,308 EUR 3,575,149 2,311,085 1.08

8,571,558 6,508,089 3.04




195


PAPUA NEW GUINEALihir Gold Ltd 85,922 AUD 86,724 179,152 0.09Oil Search Ltd 68,529 AUD 322,785 220,738 0.10

409,509 399,890 0.19

SINGAPOREDBS Group Holdings Ltd 50,000 SGD 418,919 293,063 0.14DBS Group Holdings Ltd (Rights) 25,000 SGD 67,076 52,208 0.03Macarthurcook Industrial REIT – REIT 515,000 SGD 277,421 91,417 0.04Singapore Telecommunications Ltd 183,000 SGD 296,843 324,841 0.15

1,060,259 761,529 0.36

SOUTH KOREASamsung Electronics Co., Ltd 450 KRW 294,931 161,129 0.08

SPAINRepsol YPF SA 54,014 EUR 1,455,391 1,149,806 0.54

SWEDENSvenska Cellulosa AB "B" 133,362 SEK 1,621,220 1,149,521 0.54Telefonaktiebolaget LM Ericsson 94,832 SEK 1,205,194 720,055 0.34Volvo AB "B" 101,447 SEK 828,522 561,992 0.26

3,654,936 2,431,568 1.14

SWITZERLANDBaloise Holding AG (Reg) 21,323 CHF 1,393,627 1,584,635 0.74Credit Suisse Group AG 35,837 CHF 1,659,127 966,914 0.45Nestle SA 51,069 CHF 1,521,276 2,011,231 0.94Roche Holding AG (Genusscheine) 10,797 CHF 1,937,699 1,660,993 0.78Swisscom AG (Reg) 2,831 CHF 1,047,885 909,894 0.43

7,559,614 7,133,667 3.34

TAIWANTaiwan Secom Co., Ltd 153,000 TWD 223,436 221,621 0.10

UNITED KINGDOMAnglo American PLC 45,564 GBP 1,267,022 1,023,047 0.48BP PLC 427,402 GBP 4,113,414 3,255,936 1.52British American Tobacco PLC 45,227 GBP 1,252,960 1,177,539 0.55GlaxoSmithKline PLC 136,332 GBP 3,290,866 2,524,290 1.18HSBC Holdings PLC 212,450 GBP 3,666,615 2,025,925 0.95J Sainsbury PLC 155,262 GBP 675,594 743,094 0.35Smiths Group PLC 54,011 GBP 703,296 708,193 0.33Unibet Group PLC – Receipt 41,891 SEK 1,225,158 557,175 0.26Vodafone Group PLC 1,330,982 GBP 3,182,536 2,703,835 1.26

19,377,461 14,719,034 6.88

UNITED STATES OF AMERICAAbbott Laboratories 15,900 USD 733,878 845,244 0.40Abercrombie & Fitch Co. "A" 35,600 USD 1,904,010 790,676 0.37Allegheny Technologies, Inc. 55,800 USD 2,698,765 1,346,454 0.63Allstate Corp. (The) 58,200 USD 2,721,577 1,857,162 0.87Altria Group, Inc. 117,700 USD 2,161,186 1,804,341 0.84




196


American Express Co. 2,500 USD 116,189 45,000 0.02Amgen, Inc. 7,600 USD 439,708 437,684 0.20Apache Corp. 26,300 USD 2,184,206 1,936,732 0.91Applied Materials, Inc. 7,600 USD 143,191 77,140 0.04Archer-Daniels-Midland Co. 67,800 USD 1,922,550 1,947,216 0.91AT&T, Inc. 96,072 USD 2,612,146 2,712,113 1.27Avnet, Inc. 49,300 USD 1,450,393 879,512 0.41Bank of America Corp. 135,500 USD 4,377,940 1,794,020 0.84Bristol-Myers Squibb Co. 8,000 USD 200,612 182,960 0.09Caterpillar, Inc. 44,500 USD 2,642,764 1,942,870 0.91CBS Corp. "B" 7,350 USD 200,166 58,580 0.03Chevron Corp. 36,400 USD 2,274,818 2,671,032 1.25Cigna Corp. 101,200 USD 2,385,065 1,668,788 0.78Cisco Systems, Inc. 67,900 USD 1,564,717 1,102,017 0.52Citigroup, Inc. 255,800 USD 5,455,112 1,739,440 0.81Coca-Cola Co. (The) 23,400 USD 1,104,609 1,051,362 0.49Comcast Corp. "A" 114,700 USD 2,472,350 1,887,962 0.88Computer Sciences Corp. 45,800 USD 2,212,093 1,552,620 0.73ConocoPhillips 37,100 USD 2,041,334 1,908,795 0.89Covidien Ltd 6,375 USD 242,184 225,101 0.11Dell, Inc. 13,900 USD 435,197 142,197 0.07Dominion Resources, Inc./VA 7,300 USD 258,914 257,179 0.12Dow Chemical Co. (The) 72,700 USD 2,581,184 1,130,485 0.53EI Du Pont de Nemours & Co. 41,200 USD 1,672,334 1,034,532 0.48Eli Lilly & Co. 9,400 USD 553,492 372,898 0.17Exxon Mobil Corp. 53,300 USD 2,787,747 4,188,847 1.96Fortune Brands, Inc. 31,500 USD 2,050,759 1,263,465 0.59General Electric Co. 145,500 USD 4,549,962 2,301,810 1.08Goldman Sachs Group, Inc. (The) 25,200 USD 2,784,240 2,067,912 0.97Goodrich Corp. 55,900 USD 2,554,774 2,044,263 0.96Hartford Financial Services Group, Inc. 123,200 USD 2,980,770 2,010,624 0.94Hewlett-Packard Co. 47,900 USD 1,317,781 1,733,501 0.81Home Depot, Inc. 60,300 USD 2,046,153 1,393,533 0.65Ingram Micro, Inc. "A" 63,000 USD 1,033,429 822,780 0.38Intel Corp. 113,100 USD 2,608,283 1,661,439 0.78International Business Machines Corp. 27,600 USD 2,488,606 2,305,980 1.08Johnson & Johnson 33,900 USD 1,965,384 2,005,863 0.94JPMorgan Chase & Co. 77,000 USD 2,979,652 2,387,770 1.12Kraft Foods, Inc. "A" 17,988 USD 420,700 478,481 0.22Lincoln National Corp. 111,100 USD 3,128,969 2,037,574 0.95Macy's, Inc. 185,900 USD 3,169,690 1,749,319 0.82Masco Corp. 155,300 USD 3,153,312 1,678,793 0.78Medtronic, Inc. 10,400 USD 521,412 317,616 0.15Merck & Co., Inc. 69,700 USD 2,506,353 2,063,120 0.96Microsoft Corp. 100,900 USD 2,735,424 1,951,406 0.91Morgan Stanley 123,200 USD 2,030,770 1,871,408 0.88Newell Rubbermaid, Inc. 112,100 USD 2,289,460 1,109,790 0.52Newfield Exploration Co. 65,500 USD 2,632,348 1,262,840 0.59Nucor Corp. 43,700 USD 1,904,772 2,013,696 0.94Occidental Petroleum Corp. 34,300 USD 1,586,664 2,004,492 0.94Oracle Corp. 45,200 USD 706,800 805,916 0.38




197


PepsiCo, Inc. 15,400 USD 862,681 845,152 0.40Pfizer, Inc. 133,100 USD 3,546,798 2,362,525 1.10Philip Morris International, Inc. 20,200 USD 734,421 886,982 0.41PPG Industries, Inc. 26,700 USD 1,685,227 1,080,549 0.51Procter & Gamble Co. 35,500 USD 2,005,535 2,169,760 1.01QUALCOMM, Inc. 12,300 USD 491,882 429,762 0.20Royal Caribbean Cruises Ltd 60,700 USD 1,482,592 809,738 0.38Schering-Plough Corp. 20,300 USD 393,314 345,912 0.16Sherwin-Williams Co. (The) 11,400 USD 541,712 668,154 0.31Spirit Aerosystems Holdings, Inc. "A" 72,900 USD 1,635,011 658,287 0.31Terex Corp. 68,800 USD 1,753,588 1,137,952 0.53Texas Instruments, Inc. 600 USD 19,773 9,096 0.00Textron, Inc. 84,000 USD 1,065,643 1,082,760 0.50Time Warner, Inc. 49,900 USD 822,410 502,493 0.23Travelers Cos., Inc. (The) 43,400 USD 2,047,475 1,949,962 0.91United Parcel Service, Inc. "B" 7,500 USD 559,064 406,350 0.19United Technologies Corp. 12,000 USD 687,086 636,480 0.30US Bancorp 11,100 USD 339,219 267,621 0.13Verizon Communications, Inc. 46,300 USD 1,577,089 1,538,549 0.72VF Corp. 21,000 USD 1,197,735 1,130,850 0.53Viacom, Inc. "B" 114,800 USD 3,153,409 2,090,508 0.98Walgreen Co. 12,800 USD 429,244 306,432 0.14Wal-Mart Stores, Inc. 23,800 USD 1,243,983 1,310,190 0.61Walt Disney Co. (The) 24,700 USD 679,361 555,256 0.26WellPoint, Inc. 1,600 USD 85,425 68,976 0.03Wells Fargo & Co. 69,500 USD 2,170,791 2,001,600 0.94Western Union Co. (The) 9,100 USD 196,913 128,310 0.06Wyeth 7,000 USD 315,316 259,630 0.12

142,419,595 106,574,186 49.84







198

1. Organisation

International Opportunities Funds (the “SICAV” or the “Company”) (formerly known as Prudential International Funds) is an open-endedinvestment company organised as a Société Anonyme under the laws of the Grand Duchy of Luxembourg and qualifies as a Sociétéd’Investissement à Capital Variable (SICAV). The SICAV was incorporated on March 20, 2001, under Part I of the March 30, 1988 Law ofthe Grand Duchy of Luxembourg, for an unlimited period.

As a result of the Extraordinary General Meeting held on December 27, 2005 and CSSF approval, the SICAV is now governed by theLuxembourg Law dated December 20, 2002. The Company fulfils the provisions of article 27 applicable to the investment companies whichhave not designated a management company i.e. self managed investment company. Thus, the Company complies with the provisions ofdirectives 2001/107/EC and 2001/108/EC of the European Parliament and of the Council of January 21, 2002 amending the CouncilDirective 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investmentin transferable securities (UCITS) with a view to regulating management companies and simplified prospectuses respectively with regards toinvestments of UCITS.

The SICAV aims to provide subscribers with a choice of Sub-Funds investing in a wide range of transferable securities and other permittedassets and featuring a diverse array of investment objectives. As at December 31, 2008 the SICAV had offered shares in thirty-six Sub-Funds:

International Opportunities Funds – Asia Pacific Equity (hereinafter called “Asia Pacific Equity”);International Opportunities Funds – Asian Bond (hereinafter called “Asian Bond”);International Opportunities Funds – Asian Dynamic (hereinafter called “Asian Dynamic”);International Opportunities Funds – Asian Equity (hereinafter called “Asian Equity”);International Opportunities Funds – Asian Equity Income (hereinafter called “Asian Equity Income”);International Opportunities Funds – Asian Infrastructure Equity (hereinafter called “Asian Infrastructure Equity”);International Opportunities Funds – Asian Local Bond (hereinafter called “Asian Local Bond”);International Opportunities Funds – Asian Property Securities (hereinafter called “Asian Property Securities”);International Opportunities Funds – China Equity (hereinafter called “China Equity”);International Opportunities Funds – Dragon Peacock (hereinafter called “Dragon Peacock”);International Opportunities Funds – European Investment Grade Bond (hereinafter called “European Investment Grade Bond”);International Opportunities Funds – Global Market Navigator (hereinafter called “Global Market Navigator”);International Opportunities Funds – Global Technology (hereinafter called “Global Technology”);International Opportunities Funds – Greater China Equity (hereinafter called “Greater China Equity”);International Opportunities Funds – Hong Kong Equity (hereinafter called “Hong Kong Equity”);International Opportunities Funds – India Equity (hereinafter called “India Equity”);International Opportunities Funds – Indonesia Equity (hereinafter called “Indonesia Equity”);International Opportunities Funds – Japan Dynamic (hereinafter called “Japan Dynamic”);International Opportunities Funds – Japan Equity (hereinafter called “Japan Equity”);International Opportunities Funds – Japan Smaller Companies (hereinafter called “Japan Smaller Companies”);International Opportunities Funds – Korea Equity (hereinafter called “Korea Equity”);International Opportunities Funds – Latin American Equity (hereinafter called “Latin American Equity”);International Opportunities Funds – Malaysia Equity (hereinafter called “Malaysia Equity”);International Opportunities Funds – North America (hereinafter called “North America”);International Opportunities Funds – North American Value (hereinafter called “North American Value”);International Opportunities Funds – Pan European (hereinafter called “Pan European”);International Opportunities Funds – Philippines Equity (hereinafter called “Philippines Equity”);International Opportunities Funds – Taiwan Equity (hereinafter called “Taiwan Equity”);International Opportunities Funds – Thailand Equity (hereinafter called “Thailand Equity”);International Opportunities Funds – US Bond (hereinafter called “US Bond”);International Opportunities Funds – US Corporate Bond (hereinafter called “US Corporate Bond”);International Opportunities Funds – US High Investment Grade Bond (hereinafter called “US High Investment Grade Bond”);International Opportunities Funds – US High Yield Bond (hereinafter called “US High Yield Bond”);International Opportunities Funds – US Investment Grade Bond (hereinafter called “US Investment Grade Bond”);International Opportunities Funds – Vietnam Equity (hereinafter called “Vietnam Equity”); andInternational Opportunities Funds – World Value Equity (hereinafter called “World Value Equity”).


NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2008

199

During the year, the SICAVadded the following three new Sub-Funds in the prospectus resulting in the total Sub-Funds that could be offeredby the SICAV to be increased to thirty-six:

International Opportunities Funds – Global Market Navigator (hereinafter called “Global Market Navigator”) (launched on March 26,2008);International Opportunities Funds – Japan Smaller Companies (hereinafter called “Japan Smaller Companies”) (launched on March 26,2008);International Opportunities Funds – Latin American Equity (hereinafter called “Latin American Equity”) (launched on April 30, 2008).

On January 29, 2008, securities in the Asian Structured Products Sub-Fund have been sold to Investment Opportunities Fund SICAV – FISand all shares were redeemed.

The SICAV currently offers the following shares:

Class A reserved for retail investors – Asian Bond, Asian Equity, Asian Equity Income, Asian Infrastructure Equity, Asian Local Bond, AsianProperty Securities, China Equity, Dragon Peacock, European Investment Grade Bond, Global Market Navigator (launched March 26,2008), Global Technology, Greater China Equity, Hong Kong Equity, India Equity, Indonesia Equity, Japan Equity, Japan SmallerCompanies (launched March 26, 2008), Korea Equity, Malaysia Equity, Latin American Equity (launched April 30, 2008), North America,North American Value, Pan European, Philippines Equity, Taiwan Equity, Thailand Equity, US Bond, US High Investment Grade Bond, USHigh Yield Bond, US Investment Grade Bond, and World Value Equity;

Class AD reserved for retail investors where dividends will be distributed – Asian Bond;

Class AJ reserved for retail investors and whose reference currency is JPY – Japan Equity;

Class B reserved for institutional investors having subscribed through selected distributors specifically approved by the SICAV – Asian Equity,US High Investment Grade Bond and US Investment Grade Bond;

Class C reserved for institutional investors – Asian Equity, Asian Infrastructure Equity (launched April 1, 2008), European Investment GradeBond, Global Market Navigator (launched June 30, 2008), Global Technology, Greater China Equity, Pan European, US Bond, US HighInvestment Grade Bond, US High Yield Bond, Vietnam Equity (launched January 11, 2008) and World Value Equity;

Class D reserved for certain institutional investors – Asian Bond, Asian Dynamic, Asian Equity, Asian Equity Income, Asian Local Bond, AsiaPacific Equity (launched August 1, 2008), Asian Property Securities, China Equity, Dragon Peacock, European Investment Grade Bond,Global Market Navigator (launched March 26, 2008), Hong Kong Equity, India Equity, Indonesia Equity, Japan Dynamic, Japan Equity,Korea Equity, North America, North American Value, Pan European, Taiwan Equity, Thailand Equity, US Bond, US Corporate Bond, USHigh Yield Bond, US High Investment Grade Bond, US Investment Grade Bond, and World Value Equity;

Class DDJ reserved for certain institutional investors as defined from time to time by the Luxembourg authorities and specifically approved bythe SICAV, where dividends will be distributed and whose reference currency is JPY – Global Market Navigator (launched June 30, 2008);

Class DD reserved for certain institutional investors as defined from time to time by the Luxembourg authorities and specifically approved bythe SICAV and whose reference currency is USD – US Bond (launched October 3, 2008);

Class DJ reserved for certain institutional investors as defined from time to time by the Luxembourg authorities and specifically approved bythe SICAV and whose reference currency is JPY – Japan Equity;

Class E reserved for institutional investors where dividends will be distributed – Asia Pacific Equity, Asian Bond, Asian Local Bond, JapanEquity, Japan Smaller Companies (launched March 26, 2008), Latin American Equity (launched April 30, 2008) and US Bond;

Class F reserved for retail investors – Asian Bond, Asian Equity, Asian Infrastructure Equity (launched February 26, 2008), Asian Local Bond,Asian Property Securities (launched January 3, 2008), Global Technology, Greater China Equity, North American Value, Pan European, USBond, US High Yield Bond and World Value Equity;

Class FD reserved for retail investors and where dividends will be distributed and whose reference currency is SGD – Asian Property Securities(launched January 3, 2008);

Class J reserved for Japan mutual fund or investment trust – Asian Equity, Asian Infrastructure Equity (launched June 30, 2008), ChinaEquity, India Equity, Indonesia Equity, Malaysia Equity, Philippines Equity, Thailand Equity and Vietnam Equity.


NOTES TO THE FINANCIAL STATEMENTS AS AT DECEMBER 31, 2008 (continued)

200

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with the format and regulations prescribed by the Luxembourg authorities forLuxembourg investment companies and the following significant accounting policies:

(a) Valuation of Investments and Other Assets

l the value of any cash on hand or on deposit, bills and demand notes and accounts receivables prepaid expenses, cash and interestdeclared or accrued as aforesaid and not yet received shall be deemed to be the full amount thereof, unless in any case the same isunlikely to be paid or received in full, in which case the value thereof shall be arrived at after making such discount as the Directorsmay consider appropriate in such case to reflect the true value thereof;

l the value of securities which are quoted or dealt in on any Stock Exchange shall be in respect of each security, the last known price,and where appropriate, the middle market price on the stock exchange which is normally the principal market for such security;

l securities dealt in on another Regulated Market are valued in a manner as near as possible to that described in the precedingparagraph;

l in the event that any of the securities held in any portfolio on the relevant Valuation Day are not quoted or dealt in on a StockExchange or another Regulated Market or, for any of the securities, no price quotation is available, or if the price as determinedpursuant to sub-paragraphs (2) and/or (3) is not in the opinion of the Directors representative of the fair market value of the relevantsecurities, the value of such securities will be determined based on the reasonably foreseeable sales price determined prudently and ingood faith;

l all other assets will be valued at their respective fair values as determined in good faith by the Directors in accordance with generallyaccepted valuation principles and procedures.

Valuation of Corporate Bonds and Securitisations

Corporate bonds and securitised assets are valued based on either indicative prices communicated by brokers or calculated prices fromsources such as FT Interactive Data or Valuelink. Given the lack of liquidity inherent in some of these products, there is no guaranteethat the SICAV would be able to sell these products at such a price; the Directors nevertheless believe that such quotes and pricescorrespond to the market practice valuation of these securities.

(b) Income from Investments

The SICAV takes credit for income from its investments on the following basis:l on fixed deposits, and bonds on a time apportionment basis;l on other stocks on the basis of dividends declared.

(c) Forward Foreign Exchange Contracts and Futures Contracts

During the year, the SICAV has entered into a number of forward foreign exchange and futures contracts. Open forward foreignexchange and futures contracts are valued at the cost to close the contracts on the accounting date. Surpluses/deficits arising from theseand closed unsettled contracts are taken to unrealised gain/loss and are included under assets or liabilities (as appropriate) in theCombined Statement of Net Assets on pages 56 to 63.

(d) Securities Lending Transactions

The SICAV has entered into securities lending with The Bank of New York as securities lending agent.

(e) Conversion of Foreign Currencies

The value of the assets denominated in a currency other than the Reference Currency of the relevant Class of any Sub-Fund will betranslated at the rates of exchange prevailing in Luxembourg at the time of the determination of the corresponding Net Asset Value onDecember 31, 2008.

(f) Total Combined Figures

The combined figures of the SICAVare expressed in USD and are equal to the sum of the net assets of the various activated Sub-Fundstranslated into USD (where required) at the rates of exchange prevailing in Luxembourg at the Sub-Fund’s relevant valuation slot:

1 USD = 0.7093 Euros (December 31, 2008)

3. Management Fees

During the year the Investment Manager is entitled to receive from the relevant Sub-Fund a fee payable monthly in arrears as a percentage perannum of the average monthly Net Asset Value of such Sub-Fund during the relevant month.

For the year ended December 31, 2008 the Management Fees per class are up to the documented rates:



201

Class “A” Class “AD” Class “AE” Class “AJ” Class “B” Class “C” Class “CJ” Class “DDJ”Sub-Funds Shares Shares Shares Shares Shares Shares Shares Shares

Asia Pacific Equity 1.50% – – – 1.00% 1.00% – –

Asian Bond 1.25% 1.25% – – 0.50% 0.50% – –

Asian Dynamic 1.75% – – – 1.00% 1.00% – –

Asian Equity 1.50% – – – 1.00% 1.00% – –

Asian Equity Income 1.50% 1.50% – – 1.00% 1.00% – –

Asian Infrastructure Equity 1.50% – – – 1.00% 1.00% – –

Asian Local Bond 1.25% – – – 0.50% 0.50% – –

Asian Property Securities 1.50% 1.50% – – 1.00% 1.00% – –

Asian Structured Products 1.50% – – – 1.00% 1.00% – –

China Equity 1.50% – – – 1.00% 1.00% – –

Dragon Peacock 1.75% – – – 1.00% 1.00% – –

European Investment Grade Bond 1.25% – – – 0.50% 0.50% – –

Global Market Navigator 1.50% – – – 1.00% 1.00% – 0.00%

Global Technology 1.75% – – – 1.00% 1.00% – –

Greater China Equity 1.50% – – – 1.00% 1.00% – –

Hong Kong Equity 1.50% – – – 1.00% 1.00% – –

India Equity 1.50% – – – 1.00% 1.00% – –

Indonesia Equity 1.50% – – – 1.00% 1.00% – –

Japan Dynamic 1.50% – – – 1.00% 1.00% – –

Japan Equity 1.50% – – 1.50% 1.00% 1.00% 1.00% –

Japan Smaller Companies 1.50% – – 1.50% 1.00% 1.00% 1.00% –

Korea Equity 1.50% – – – – – – –

Latin American Equity 1.50% – – – 1.00% 1.00% – –

Malaysia Equity 1.50% – – – 1.00% 1.00% – –

North America 1.50% – – – 1.00% 1.00% – –

North American Value 1.50% – – – 1.00% 1.00% – –

Pan European 1.50% – – – 1.00% 1.00% – –

Philippines Equity 1.50% – – – 1.00% 1.00% – –

Taiwan Equity 1.50% – – – 1.00% 1.00% – –

Thailand Equity 1.50% – – – 1.00% 1.00% – –

US Bond 1.25% – – – 0.50% 0.50% – –

US Corporate Bond 1.25% – – – 0.50% 0.50% – –

US High Investment Grade Bond 1.25% – – – 0.50% 0.50% – –

US High Yield Bond 1.25% – – – 0.50% 0.50% – –

US Investment Grade Bond 1.25% – – – 0.50% 0.50% – –

Vietnam Equity 2.00% – – – 1.75% 1.75% – –

World Value Equity 1.50% – – – 1.00% 1.00% – –



202

Class “D” Class “DD” Class “DJ” Class “E” Class “EJ” Class “F” Class “FD” Class “H” Class “J”Sub-Funds Shares Shares Shares Shares Shares Shares Shares Shares Shares

Asia Pacific Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Asian Bond 0.00% – – 0.50% – 1.25% 1.25% – 0.50%

Asian Dynamic 0.00% – – 1.00% – 1.75% – – 1.00%

Asian Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Asian Equity Income 0.00% – – 1.00% – 1.50% 1.50% – 1.00%

Asian Infrastructure Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Asian Local Bond 0.00% – – 0.50% – 1.25% – – 0.50%

Asian Property Securities 0.00% – – 1.00% – 1.50% 1.50% – 1.00%

Asian Structured Products 0.00% – – 1.00% – 1.50% – – 1.00%

China Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Dragon Peacock 0.00% – – 1.00% – 1.75% – 1.50% 1.00%

European Investment Grade Bond 0.00% – – 0.50% – 1.25% – – 0.50%

Global Market Navigator 0.00% – – 1.00% – 1.50% – – 1.00%

Global Technology 0.00% – – 1.00% – 1.75% – – 1.00%

Greater China Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Hong Kong Equity 0.00% – – 1.00% – 1.50% – – 1.00%

India Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Indonesia Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Japan Dynamic 0.00% – – 1.00% – 1.50% – – 1.00%

Japan Equity 0.00% – 0.00% 1.00% – 1.50% – – 1.00%

Japan Smaller Companies 0.00% – 0.00% 1.00% – 1.50% – – 1.00%

Korea Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Latin American Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Malaysia Equity 0.00% – – 1.00% – 1.50% – – 1.00%

North America 0.00% – – 1.00% – 1.50% – – 1.00%

North American Value 0.00% – – 1.00% – 1.50% – – 1.00%

Pan European 0.00% – – 1.00% – 1.50% – – 1.00%

Philippines Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Taiwan Equity 0.00% – – 1.00% – 1.50% – – 1.00%

Thailand Equity 0.00% – – 1.00% – 1.50% – – 1.00%

US Bond 0.00% 0.00% – 0.50% – 1.25% – – 0.50%

US Corporate Bond 0.00% – – 0.50% – 1.25% – – 0.50%

US High Investment Grade Bond 0.00% – – 0.50% – 1.25% – – 0.50%

US High Yield Bond 0.00% – – 0.50% – 1.25% – – 0.50%

US Investment Grade Bond 0.00% – – 0.50% – 1.25% – – 0.50%

Vietnam Equity 0.00% – – – – 2.00% – – 1.75%

World Value Equity 0.00% – – 1.00% – 1.50% – – 1.00%



203

4. Central Administration, Custodian, Registrar and Transfer Agent Fees

The Bank of New York (Luxembourg) S.A. acts as Custodian, Central Administrator and Registrar and Transfer Agent to the Company, andis entitled to receive from the SICAV an annual fee which is payable at the end of each month.

The SICAV pays the Custodian safekeeping fees per line of stock per annum and transaction fees based on the number and the location of thetransactions.

As from March 1, 2007, Prudential Asset Management (Singapore) Limited has agreed to bear all fees exceeding 0.422% of the annual totalexpense ratio on the India Equity Sub-Fund.

5. Tax Status

The SICAV is registered under Luxembourg law as an investment company. Accordingly, no Luxembourg income or capital gains tax is atpresent payable by the Company. However, it is subject to an annual “taxe d’abonnement” calculated at an annual rate of 0.05% of the netassets relative to the Class A, Class AD, Class AE, Class AJ, Class F, Class FD and Class H Shares, such tax being payable quarterly andcalculated on the basis of the net assets of all Sub-Funds at the end of the relevant quarter. This tax is reduced to 0.01% per annum of the netassets relative to the Class B, Class C, Class CD, Class CJ, Class D, Class DD, Class DJ, Class DDJ, Class E, Class EJ, Class J and Class JDShares.

6. Audit Fees, Printing, Publication Expenses and Other Charges

The SICAV bears all its operating expenses, including without limitation the costs of buying and selling securities, governmental charges, legaland auditing fees, interest, printing, reporting and publication expenses, paying agency fees, postage and telephone.

Any charges and costs attributable to a specific Sub-Fund will be allocated directly to that Sub-Fund.

Any charges and costs that cannot be directly attributable to a specific Sub-Fund will be allocated equally to the various Sub-Funds or, if theamounts so require, they will be allocated to the Sub-Funds in proportion to their respective net assets.

7. Registration and Distribution of Sub-Funds

Certain Sub-Funds have been registered for sale in Singapore, Korea, Hong Kong / Macau and Taiwan:

Singapore Korea Hong Kong / Macau Taiwan

Asian Bond Asian Bond Asian Bond Asian BondAsian Equity Asian Equity Asian Equity Global TechnologyAsian Property Securities Greater China Equity Asian Equity Income Pan EuropeanGlobal Technology US High Yield Bond Asian Infrastructure Equity US High Investment Grade BondGreater China Equity US Investment Grade Bond Asian Local Bond US High Yield BondPan European World Value Equity Asian Property Securities US Investment Grade BondUS High Investment Grade Bond China Equity World Value EquityUS High Yield Bond Dragon PeacockUS Investment Grade Bond European Investment Grade BondWorld Value Equity Global Market Navigator

Global TechnologyGreater China EquityHong Kong EquityIndia EquityIndonesia EquityJapan EquityKorea EquityMalaysia EquityNorth AmericaPan EuropeanPhilippines EquityTaiwan EquityThailand EquityUS High Investment Grade BondUS High Yield BondUS Investment Grade BondVietnam EquityWorld Value Equity



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8. Forward Foreign Exchange Contracts

As at December 31, 2008, the SICAV has the following open forward foreign exchange contracts:

Unrealisedgain/(loss)

Currency Purchases Currency Sales Value date USD

Asian Bond FundUSD 3,053,859 MYR 11,000,000 16/3/2009 (114,859)

Total unrealised loss (114,859)

Asian Local Bond FundKRW 2,019,040,000 USD 1,531,316 8/1/2009 72,691

USD 1,600,000 KRW 2,019,040,000 8/1/2009 (4,007)

PHP 94,860,000 USD 2,000,000 12/1/2009 (7,615)

USD 1,600,000 KRW 2,033,600,000 14/1/2009 (16,601)

MYR 12,955,550 USD 3,700,000 20/1/2009 36,527

USD 3,500,000 KRW 4,285,750,000 20/1/2009 90,900

KRW 5,598,000,000 USD 3,825,074 28/1/2009 631,620

USD 4,000,000 KRW 5,598,000,000 28/1/2009 (456,694)

USD 5,000,000 KRW 7,125,000,000 29/1/2009 (672,980)

USD 2,000,000 KRW 2,887,000,000 5/2/2009 (299,377)

MYR 12,901,940 SGD 5,400,000 12/2/2009 (35,642)

SGD 6,000,000 USD 3,972,984 17/2/2009 197,860

PHP 203,480,000 USD 4,000,000 5/3/2009 252,816

TWD 134,100,000 USD 4,000,000 5/3/2009 101,227

USD 5,300,000 HKD 41,276,930 5/3/2009 (28,242)

TWD 125,756,250 USD 3,750,000 9/3/2009 96,048

USD 3,000,000 HKD 23,231,100 9/3/2009 1,140

USD 2,800,000 IDR 32,398,800,000 17/3/2009 (80,985)

USD 1,500,000 IDR 17,625,000,000 27/3/2009 (63,194)

MYR 25,606,000 USD 7,000,000 3/6/2009 381,589

PHP 104,100,000 USD 2,000,000 4/6/2009 161,959

SGD 3,018,000 USD 2,000,000 28/10/2009 97,214

USD 5,000,000 SGD 7,377,500 28/10/2009 (126,639)

USD 6,000,000 SGD 8,880,000 29/10/2009 (170,729)

Total unrealised gain 158,886

The net unrealised gains/(losses) attributed to these transactions are included in the Combined Statement of Net Assets.



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9. Open Futures Contracts

As at December 31, 2008, the SICAV has the following open futures contracts:

Number of Expiration Value Unrealised gaincontracts Contract/Description date USD USD

Global Market Navigator Fund

32 SGX MSCI Singapore Index January 2009 974,780 32,968

281 TurkDEx - ISE 30 February 2009 650,446 2,318

13 FTSE 100 Index March 2009 829,366 30,147

4 Long Gilt March 2009 712,311 41,669

3,166,903 107,102

The net unrealised gain attributed to these transactions is included in the Combined Statement of Net Assets.

10. Securities Lending

The SICAV had no securities lending activities at year-end.

11. Soft Commission

The Investment Manager and, where applicable, the Investment Sub-Managers of any Sub-Fund (together, the "Relevant Parties”) may beentitled to receive and/or enter into soft-dollar commissions/arrangements in respect of the Company or the Sub-Funds (as the case may be).The Relevant Parties will comply with applicable regulatory and industry standards on soft-dollars. The soft-dollar commissions/arrangementsshall include specific advice as to the advisability of dealing in, or as to the value of any investments, research and advisory services, economicand 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 extent that they are used to support the investment decision makingprocess, the giving of advice, the conduct of research or analysis, or analysis of trade execution, and custodial service in relation to theinvestments managed for clients.

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.

Based on the available soft dollar commission levels available at each broker, the Relevant Parties will instruct the brokers to pay the vendorsthe permitted softable costs, based on the percentage of trades attributable to the Company.

12. Transactions with Connected Persons

Certain directors of the Company are or may also be officers and/or directors of one or more of the Investment Manager or the InvestmentSub-Managers of the Company.

The Management Fees that are paid by the Company to the Investment Managers are detailed in note 3 to the financial statements.

No transactions of the Company were effected through a broker who is a connected person of the Company, the Investment Manager or theDirectors of the Company.

All transactions with connected parties were entered into in the ordinary course of business and under normal commercial terms.

13. Subsequent Events

On February 2, 2009, Class F of the following Sub-Funds were reactivated:

l International Opportunities Funds – US High Investment Grade Bond Fund;l International Opportunities Funds – US Investment Grade Bond Fund.

On February 16, 2009, Class AD of the following Sub-Funds were launched:

l International Opportunities Funds – US High Yield Bond Fund;l International Opportunities Funds – US High Investment Grade Bond Fund;l International Opportunities Funds – US Investment Grade Bond Fund.



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Documents

INTERNATIONAL OPPORTUNITIES FUNDS