2007-pru annual report

7/27/2019 2007-Pru Annual Report

1/40

Annual Report 2007

Bo Co

Thng NinQu [u t Cn bng Prudential

Prudential Balanced Fund

Tng 23, Trung tm Thng mi Si Gn

37 Tn [c Thng, Q.1, TP. H Ch Minh, Vit Nam

T +84 8 910 1660

F +84 8 910 5613

W www.pru-fund.com.vn

E [email protected]

Cng ty Qun l Qu [u t Prudential Vit Nam

Prudential Vietnam Fund Management Company


2/40

Thng {ip ca Tng Gim {c

CEO Message 4

Nhn li nn Kinh t v Thfi trng

Economic and Market Review 8

Tng quan v Kinh t v Thfi trng

Economic and Market Outlook 14

Ban [i din Qu

The Fund Representative Board 20

Bo co ca Ban Qun l QuFund Manager 's report 26

Bo co ti chnh

Financial Statements 38

Cng ty Qun l Qu [u t Prudential Vietnam

Prudential Vietnam Fund Management Company 74

Ghi ch

Disclaimer 76

ContentsMc lc

Qu [u T Cn Bng Prudential

gip bn cfl {c tim nngtng trng vn

v

thu nhp {finh k


3/40

CEO Message

Thng{ipca TngGim {c


4/40

Dear Investors,

On behalf of Prudential Vietnam Fund Management Company and theFund Representatives Board, I am pleased to dedicate this first annualreport of Prudential Balanced Fund to all current and future investors ofPrudential Balanced Fund with ticker symbol PRUBF1.

While 2006 was the first year of Vietnam entry into WTO, year 2007 willbe remembered for several significant events, which continue to make

Vietnam a rising star among new emerging markets in the world:

Vietnam stock prices continued to push ahead despite central banktightening and deteriorating conditions on the global stock market.

Vietnam stock market grew in size and depth with record IPOsand new share issuances in total amount of VND 90,000 billion(US$5.6 billion).

Strong economic fundamentals supported the rise of prices of realassets such as stocks and properties, as the central bank pursued itspolicy to keep the value of the VND currency low along side withthe US dollar.

During 2007, the disciplined investment process of our investment teams

produced a superior return to investors of PRUBF1 Fund, with a NAVReturn of 16.6% compared to a return of 12.7% of the Fund's Benchmark,which was pre-established by the Fund Representative Board (FRB) at65% Fixed Income and 35% Equities.

The disciplined investment strategy of PRUBF1 has allowed apayment of a reasonably high dividend rate of 15%, as agreed bya majority of unitholders, for the period starting October 2006until December 2007.

With regard to the outlook for 2008, we are concerned about

global market uncertainties and a high inflation in Vietnam. It will be achallenge for the government to control price inflation while achievinghigh economic growth

During periods of uncertain economic and market conditions, thePRUBF1 Fund is better positioned among all investment funds inVietnam, as the Fund will aim at providing to investors a stable returncoming from the Fund's bond portfolio, while giving to investorsopportunities for capital appreciation with a portfolio of carefullyselected Vietnamese stocks.

Over the long term, we expect inflation to decline. As a result,interest rates will ease and stock prices will rise again along withthe strong economy.

CEOMessage

Thng {ipca TngGim {c

Annual Report 200704

Knh gi Qu Nh {u t,

Thay mt Cng ty Qun l Qu [u t Prudential Vit Nam v Ban [idin Qu, ti rt vinh d gi {n cc Nh [u t hin ti cng nh tng laica Qu [u t Cn bng Prudential (vi m hiu l PRUBF1) bn Bo coThng nin {u tin ca Qu.

Nm 2006 l nm {u tin Vit Nam gia nhp WTO v nm 2007 cngl mt nm {ng nh vi nhiu s kin quan trng tip tc khng {finh

vfi th ca Vit Nam nh mt ngi sao sng trong s cc thfi trng {angni trn th gii:

Gi c phiu ti Vit Nam tip tc gia tng mc d Ngn hng NhNc tht cht chnh sch tin t v tnh hnh thfi trng c phiu trnth gii thay {i theo chiu hng khng tt.

Thfi trng c phiu Vit Nam tng trng c v lng v cht vinhng {t cho bn c phiu ln {u ra cng chng (IPO) vi khilng c phiu mi vi tng gi trfi 90.000 t {ng (tng {ng

5,6 t { la M).

Nn tng kinh t mnh { lm gia tng gi c ti sn nh c phiu v

nh {t, vi s h tr ca Ngn hng Nh nc tip tc chnh schgim gi {ng Vit Nam theo { la M.

Trong nm 2007, hot {ng {u t cfl tnh k lut cao ca {i ngchuyn gia {u t ca chng ti { mang li li nhun {ng k cho

ccNh [u t ca Qu PRUBF1, vi Thu nhp trn Gi trfi ti sn rng l16,6% so vi t sut li nhun chun ca Qu l 12,7%, nh { {cBan [i din Qu xc {finh trc vi 65% Cng c n v 35% C phiu.

Chin lc {u t k lut ca Qu PRUBF1 { {em li li nhun { { cflth tr mt t l c t c kh quan l 15%, trong giai {on t thng 10nm 2006 {n thng 12 nm 2007, t l ny { {c {a s nh {ut chp thun.

Hng {n nm 2008, chng ti lo ngi v nhng bt n trn thfi trngton cu v lm pht gia tng ti Vit Nam. Chnh ph phi {i din vi

thch thc l kim sot lm pht trong khi vn mun {t {c mc tiutng trng kinh t cao.

Trong giai {on thfi trng cng nh nn kinh t {ang cfl nhiu bin{ng, Qu PRUBF1 cfl vfi th tt hn trong s cc qu {u t ti Vit Nam,v Qu PRUBF1 s tip tc thc hin mc tiu mang li cho nh {u tthu nhp n {finh t tri phiu cng vi c hi tng trng vn t nhng

c phiu { {c l a chn k cng.

V di hn, chng ti d {on lm pht s gim. Theo {fl, mcli sut s gim xung v gi chng khon s li tng theo {pht trin mnh m ca nn kinh t.

ng Phm Ngc Bch, CFAQuyn Tng Gim {c

Pham Ngoc Bich, CFAActing Chief Executive Officer


5/40

Economic and Market Review

Nhn linnKinh t vThfi trng


6/40

While 2006 was the first year of Vietnam entry into WTO, year 2007 willbe remembered for several significant events in Vietnam's economy and

stock markets:

Vietnam economy continued to grow strongly at 8.48% in 2007,

mainly thanks to a strong increase of exports and investment spending

continue to dominate economic activity. Foreign Direct Investments

continued to flow into Vietnam with a record US$20.3 billion, nearly

doubled that of 2006.

Trong nm 2006, Vit Nam gia nhp WTO v trong nm 2007 cng lmt nm {ng nh vi nhiu s kin quan trng ca thfi trng chng

khon cng nh ton b nn kinh t Vit Nam:

Kinh t Vit Nam tip tc tng trng mnh m mc cao 8,48%

trong nm 2007, ch yu nh xut khu tng v chi tiu {u t tip

tc chim t trng cao trong cc hot {ng kinh t. [u t trc ti p nc

ngoi tip tc { vo Vit Nam mc k lc l 20,3 t { la M, gn

gp {i nm 2006.


Economicand Market

Review

0.0%

1990

REALGDPGROWTH

YEARSource: General Statistics of Vietnam

Vietnam GDP growth

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0%

1990

T^NGTRNGGDP

N^MNgun: Tng cc thng k Vit Nam

Tng trng GDP ca Vit Nam

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0.0

5.0

10.0

15.0

20.0

25.0

YEARSource: General Statistics of Vietnam

INBILLIONUSD

2001

2002

2003

2004

2005

2006

2007

FDIs Vietnam 2001-2007

Distrubute FDIsRegistered FDIs

0.0

5.0

10.0

15.0

20.0

25.0


TRIU[-LAM

2001

2002

2003

2004

2005

2006

2007

[u t trc tip nc ngoi 2001-2007

FDI gii ngnFDI {ng k



7/40


Economicand MarketReview

In the first 2 months of 2007, the Vietnam stock market as representedby the VN-Index increased by 55%, reaching a peak of 1,170 in earlyMarch 2007. Then in April 2007, the market sharply retreated to trade

in a volatile range of 900-1,000 during the rest of the year to close at

927 at year-end.

January 2007 was the first effective date of Vietnam's new Laws onSecurities. In June 2007, State Bank of Vietnam issued Instruction No.3 to

tighten the quantity of bank loans for securities investments. Finally in

November 2007, the law on Personal Income Taxes was passed.

New IPOs and new share issuance during 2007, reached VND 90,000

billion, three times more than in 2006. Most significant IPOs during

2007 were IPOs of Phu My Fertilizer Company, Bao Viet Group,

PetroVietnam Finance Company and the record size IPO ofVietcomBank. Total number of listed companies on both the HoSE

and HASTC increased to 251 from 194 in 2006.

At the same time, global equity market conditions deterioratedduring 2007, as the Sub-Prime Credit crisis amplified in the USA

and Europe, resulting in a banking crisis worldwide and a possible

global recession in 2008.

Tightening lending conditions initiated by the State Bank of Vietnam,

record amounts of new IPOs and share issuance and global market

uncertainties contributed to a highly volatile market in most 2007 bothfor stocks and bonds.

Trong 2 thng {u nm 2007, thfi trng chng khon Vit Nam(th hin qua ch s VN-Index) { tng 55%, {t {nh {im 1.170vo {u thng 3/2007. Sau {fl vo thng 4/2007, thfi trng st

gim {t ngt v dao {ng trong khong 900-1.000 trong nhng

thng cn li ca nm v dng li mc 927 vo cui nm.

Lut chng khon mi ca Vit Nam bt {u cfl hiu lc vo thng

1/2007. Thng 6/2007, Ngn hng Nh nc Vit Nam ban hnh ch

thfi s 03 tht cht cc khon cho vay {u t chng khon. Lut thuthu nhp c nhn cng { {c thng qua vo thng 11/2007.

Nhng {t cho bn c phiu ra cng chng (IPO) v pht hnh c

phiu mi trong nm 2007 {t tng trfi gi 90.000 t {ng Vit Nam,gp 3 ln nm 2006. Nhng {t IPO quan trng nht trong nm

2007 l ca Cng ty [m Ph M , Tp {on Bo Vit, Cng ty Ti chnhDu Kh Vit Nam v IPO chim k lc v tng gi trfi ca Vietcombank.Tng s cng ty nim yt trn S Giao dfich Chng khon thnh ph H

Ch Minh v H Ni tng t 194 vo nm 2006 ln {n 251.

[ng thi, thfi trng c phiu ton cu cng xu {i trong nm 2007do tc {ng ca khng hong tn dng bt {ng sn ti Hoa K v

Chu u dn {n khng hong ngn hng ton cu v kinh t ton

cu cfl th bfi suy thoi trong nm 2008.

Tht cht {iu kin cho vay theo ch thfi ca Ngn hng Nh nc

Vit Nam, gi trfi k lc ca nhng {t IPO v pht hnh c phiu mi

v tnh hnh bt n trn thfi trng ton cu { gflp phn lm cho thfitrng c phiu v tri phiu bin {ng mnh trong nm 2007.

VN index and volume since October 5, 2006

0

200

500,000

1,000,000

1,500,000

2,000,000

2,500,000Volume

400

600

800

1,000

1,200

1,400

Index

IndexVolume

Oct-06 Dec-06 Feb-07 May-07 Jul-07 Oct-07 Dec-07

Ch s VN-Index v khi lng giao dfich 5/10/2006 - 31/12/2007

0

200

500.000

1.000.000

1.500.000

2.000.000

2.500.000Khilnggiaodfich

400

600

800

1,000

1,200

1,400

Index

IndexKhilnggiaodfich

T .1 0/ 20 06 T .1 2/ 20 06 T .2 /2 00 7 T .5 /2 00 7 T .7 /2 00 7 T .1 0/ 20 07 T .1 2/ 20 07



8/40


9/40

We forecast a strong economy in 2008, growing at 8.7% per year, nearthe government target of 9% p.a.

CPI inflation was announced at 12.6% in December 2007 and will likely

increase further in early 2008. In this environment, investors will continue

to be attracted by real assets such as properties and gold and less

attracted by equities.

Poor infrastructures, a shortage of qualified human resources and other

bottlenecks will limit the country's ability to absorb record inflows of

foreign investment capital. The Government's main challenge will continue

to be able to convert foreign currencies into VND for domestic investment

purposes, while maintaining the VND at a low level and controlling money

supply growth to prevent inflation from rising.

The Government has announced that it will push ahead for total

equitization of some 1,500 remaining SOEs in 2008 and 2009. The

stock market will further develop with more IPOs and share issuances in

2008, such as SABECO, HABECO, MOBIFONE, providing many more

liquid large size investment opportunities, which will attract the

attention of international investors.

Chng ti d bo kinh t tng trng trong nm 2008 mc 8,7%/ nmgn vi mc tiu do Chnh ph { ra l 9% hng nm.

Ch s lm pht {c cng b vo thng 12/2007 l 12,6% v cfl th

tng cao hn na vo {u nm 2008. Trc tnh hnh {fl, nh {u t

s tip tc bfi thu ht vo cc loi ti sn khc nh bt {ng sn

v vng nhiu hn l c phiu.

C s h tng yu km, thiu nhn l c cfl cht lng v cc ch tc

khc s hn ch kh nng tip nhn ngun vn {u t nc ngoi

cao hn na ca Vit Nam. Thch thc ch yu ca Chnh ph l kh

nng chuyn {i ngoi t sang tin {ng Vit Nam { {p ng nhu

cu {u t trong nc, trong khi vn phi gi vng tin {ng Vit

Nam mc thp v kim sot s gia tng ca ngun cung tin t {

ngn chn lm pht.

Chnh ph { thng bo s {y mnh tin trnh c phn hfla 1.500

doanh nghip nh nc cn li trong nm 2008 v 2009. Thfi trng

chng khon s pht trin hn na vi cc {t IPO v pht hnh c

phiu mi trong nm 2008, nh SABECO, HABECO, MOBIFONE,

mang li thm nhiu c hi {u t ln cfl tnh thanh khon cao,

thu ht s quan tm ca cc nh {u t quc t.

Tng quanvKinh t vThfi trng

Economicand MarketOutlook

-2

0

2

4

6

8

10

12

14

16

YEARSource: General Staticstic of Vietnam

CPI%(

YEARONYEAR)

Vietnam CPI %

1999

2000

2001

2002

2003

2004

2005

2006

2007

-2

0

2

4

6

8

10

12

14

16


CHSGII GNThnh lp nm 1997, Cng ty C phn G iy Si gn chuyn sang m hnh

c phn thng 6/2003. Tc { tng trng doanh thu bnh qun 5 nm qua

{t 56%/nm v d kin tng trng bnh qun 70%/nm trong 5 nm ti.

Investment Profiles

SAIGON PAPEREstablished in 1997, Saigon Paper transformed into JSC in June 2003.

Growth revenue during the past 5 years achieved 56% p.a. Average growth

revenue for the next 5 years is estimated at 70% p.a.

NGN H>NG THNG M]I C PHNXUT NHP KHU VIT NAMEximbank, mt trong nhng ngn hng xut nhp khu hng {u, vi 64 chi

nhnh ti Vit Nam, cfl tha thun vi 720 ngn hng ti 65 quc gia khc.

(Bo co ti chnh thng 12/2006)

EXIMBANKOne of Vietnam leading Import/Export banks, with 64 branches in

Vietnam and correspondent banking arrangements with 720 banks in

65 countries.

(Financial statements in December 2006)

Market Capitalization

Total Revenue

Net Profit

ROE

EPS Growth

P/E

P/B

VND1,123.57bn

VND 403bn

VND 31bn

5.06%

22%

25.61

1.78

Vn ho thfi trng

Tng ti sn

Li nhun sau thu

T sut li nhun trn vn ch s hu

T l thu nhp trn mt c phiu

T l gi trn thu nhp rngT l gi trn gi trfi s sch

VN[ 12.600 t (US$788 triu)

VN[ 33.721 t (US$ 2,1 t)

VN[ 463 t

7,3%

VN[ 1,654 (c phiu mnh gi: VN[ 10.000)

272

Vn ho thfi trng

Doanh thu

Li nhun sau thu


Mc tng trng ca thu nhp trn mt c phiu

T l gi trn thu nhp rng

T l gi trn gi trfi s sch

VND 1.123,57 t

VND 403 t

VND 31 t

5,06%

22%

25,61

1,78


Total Assets

Net Profit

ROE

EPS

P/EP/B

VND 12,600bn (US$788m)

VND 33,721bn (US$2.1bn)

VND 463bn

7.3%

VND 1.654 (par value: VND 10,000)

272



19/40

Vn hfla thfi trng

Doanh thu

Li nhun sau thu


Mc tng trng ca thu nhp trn 1 c phiu



VND 22.500 t

Cha cfl s liu

30,7%

25%

20%

19,3

4,8


Total Revennue

Net Profit

ROE

EPS Growth

P/E

P/B

VND 22,500bn

N/A

30.7%

25%

20%

19.3

4.8

Vn hfla thfi trng

Tng ti sn

Li nhun sau thu





VND34.979 t (US$2.186 triu)

Cha cfl s liu

VND1.681 t (s liu cha hp nht)

27,5%

42,8%

20,57

5,7


Total Revennue

Net Profit

ROE

EPS Growth

P/E

P/B

VND34,979bn (US$2,186m)

N/A

VND1,681bn (unconsolidated profit)

27.5%

42.8%

20.57

5.7

Vn hfla thfi trng

Doanh thu

Li nhun sau thu





VND20.159 t

VND1.185,29 t

VND858,55 t

21,15%

47,80%

23,48

4,96


Total Revennue

Net Profit

ROE

EPS Growth

P/E

P/B

VND20,159bn

VND1,185.29bn

VND858.55bn

21.15%

47.80%

23.48

4.96

PETRO VIETNAM FERTILIZERS AND CHEMICALSCOMPANYPetroVietnam Fertilizers and Chemicals Company (PVFCCo), a subsidiary of

PetroVietnam Oil and Gas, occupies 40% of fertilizers market share in country,

and a 70% market share in Mekong Delta. PVFCCo plays an important role

in agriculture and has contributed to the stabilization of the fertilizer market.

(Financial statements in December 2006)

CNG TY C PHN PHN []M V> HO< CHTDU KHCng ty C phn Phn [m v Hfla Cht Du Kh (PVFCCo), thnh vin

ca Tp [on Du Kh Quc Gia Vit Nam, chim 40% thfi phn phn

bfln trn ton quc, v 70% ti khu vc [ng Bng Sng Cu Long.

PVFCCo {flng vai tr quan trng trong phc v nng nghip v gflp

phn bnh n thfi trng phn bfln.

(Bo co ti chnh thng 12/2006)

NGN H>NG < CHUACB, ngn hng thng mi c phn hng {u Vit Nam, vi khch

hng mc tiu l c nhn, doanh nghip va v nh, cfl tng cng 117 chi

nhnh khp Vit Nam v tha thun hp tc vi 651 ngn hng {i tc ti

74 quc gia.

ASIAN COMMERCIAL BANKVietnam leading retail bank, with the target customers of individual & SME

clients, with 117 branches in Vietnam and correspondents banking

arrangements with 651 banks in 74 countries

CNG TY C PHN CHNG KHOI GNCng ty chng khon tm c nht, lun dn {u thfi trng, cng vi quy

m vn 1 t {-la M v gn 300 cn b nhn vin (tnh {n thi

{im nm 2007). Uy tn ca SSI khng ch trong nc m { thc s

vn ra thfi trng th gii.

SAIGON SECURITIES INC.Vietnam largest securities firm, consistently a market leader, with themarket capitalization of about US$1 billion and a staff of nearly 300

people in 2007. Not only SSI's reputation is well known domestically but

also internationally.



20/40

Financial Statements

Bo co

ti chnh

38


21/40

Bo coti chnhFinancialStatements

Prudential Balanced Fund (PRUBF1)General Information

Registration Establishment Certificate02/UBCK-GPQDT 19 July 2006

Fund Establishment Certificate06/UBCK-DKQDT 5 October 2006The Registration Establishment Certificate and the Fund EstablishmentCertificate were issued by the State Securities Commission.

The Fund's operating life, as defined in the Fund Charter and inthe Registration Establishment Certificate, is 7 years from the dateof the certificate.

Fund Representative CommitteeMr. Dinh Ba Thanh Chairman

Mr. Le Chi Hieu MemberMr. Truong Dinh Khoi MemberMr. Nguyen Xuan Son MemberMr. Nguyen Van Hao MemberMr. Le Van Be MemberMr. Tran Le Nguyen Member

Fund ManagerPrudential Vietnam Securities Investment Fund ManagementCompany Limited

Supervising BankThe HongKong and Shanghai Banking Corporation LimitedHo Chi Minh City Branch

Auditors

KPMG Limited

Qu [u t Cn bng Prudential (PRUBF1)Thng tin chung

Giy chng nhn {ng k thnh lp02/UBCK-GPQ[T ngy 19 thng 7 nm 2006

Giy chng nhn lp qu06/UBCK-[KQ[T ngy 5 thng 10 nm 2006Giy chng nhn {ng k thnh lp v Giy chng nhn lp qu doy ban Chng khon Nh nc cp.

Thi gian hot {ng ca Qu, nh { {c {finh ngha trong [iu L Quv trong Giy chng nhn {ng k thnh lp l 7 nm, k t ngy cpgiy chng nhn.

Ban [i Din Qung [inh B Thnh Ch tfich

ng L Ch Hiu Thnh vinng Trng [nh Khi Thnh vinng Nguyn Xun Sn Thnh vinng Nguyn Vn Ho Thnh vinng L Vn B Thnh vinng Trn L Nguyn Thnh vin

Cng ty Qun l QuCng ty TNHH Qun l Qu [u t Chng khon Prudential Vit Nam

Ngn hng Gim stNgn hng Hng Kng v Thng HiChi nhnh Thnh ph H Ch Minh

[n vfi kim tonCng ty TNHH KPMG


40


22/40


REPORT OF THE INDEPENDENT AUDITORS

To the InvestorsPrudential Balanced Fund (PRUBF1)

ScopeWe have audited the accompanying balance sheet of Prudential

Balanced Fund (the Fund) as of 31 December 2007 and the related

statements of income, change in equity and cash flows for the period

from 5 October 2006 to 31 December 2007, as set out on the following pages.

These financial statements are the responsibility of the Fund's management.

Our responsibility is to express an opinion on these financial statements

based on our audit.

We conducted our audit in accordance with Vietnamese Standards on

Auditing and International Standards on Auditing accepted in Vietnam.

Those standards require that we plan and perform the audit to obtain

reasonable assurance that the financial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An

audit also includes assessing the accounting principles used and significant

estimates made by management, as well as evaluating the overall

financial statement presentation. We believe that our audit provides a

reasonable basis for our opinion.

Audit opinionIn our opinion, the financial statements present fairly, in all material respects,

the financial position of Prudential Balanced Fund as of 31 December 2007

and the results of its operations and its cash flows for the period from 5

October 2006 to 31 December 2007 in accordance with Vietnamese

Accounting Standards, the Vietnamese Accounting System, Decision No.

63/2005/QD-BTC issued by the Ministry of Finance dated 14 September

2005 on promulgation of accounting system of securities investment funds

and accounting principles generally accepted in Vietnam.

KPMG LimitedVietnamInvestment Licence No: 863/GP

Audit Report No: 07-01-230

B


23/40



Statement by the Chairman

of the Fund Representative Committee

Prudential Balanced Fund (PRUBF1)

I, Dinh Ba Thanh, being the Chairman of the Fund Representative

Committee and on behalf of the investors of Prudential Balanced Fund

(the Fund), do hereby approve the attached financial statements of

the Fund for the period from 5 October 2006 to 31 December 2007,

which have been prepared in accordance with Vietnamese Accounting

Standards, the Vietnamese Accounting System, Decision No.

63/2005/QD-BTC issued by the Ministry of Finance dated 14 September

2005 on promulgation of accounting system of securities investment

funds and accounting principles generally accepted in Vietnam.

On behalf of the investors

Dinh Ba Thanh

Chairman

Bo co ca Ch tfich Ban [i Din Qu

Qu [u T Cn bng Prudential (PRUBF1)

Ti, [inh B Thnh, Ch tfich ca Ban [i Din Qu v thay mt cho cc

Nh [u t ca Qu [u t Cn bng Prudential (Qu), ph duyt cc

bo co ti chnh {nh km sau ca Qu cho giai {on t ngy 5 thng 10

nm 2006 {n ngy 31 thng 12 nm 2007, {c lp theo cc

Chun mc K ton Vit Nam, H thng K ton Vit Nam, Quyt {finh

s 63/2005/Q[-BTC do B Ti chnh ban hnh ngy 14 thng 9 nm

2005 v ch { k ton ca qu {u t chng khon v cc nguyn tc

k ton {c p dng ph bin ti Vit Nam.

Thay mt cho cc nh {u t

[inh B Thnh

Ch tfich

44


24/40




Balance sheet at 31 December 2007

Qu [u T Cn Bng Prudential (PRUBF1)

Bng cn {i k ton ngy 31 thng 12 nm 2007

A - ASSETS

Cash at banks

Investments in securities

Receivables frominvestment activities

Other receivables

TOTAL ASSETS

B - RESOURCESI - LIABILITIES

Payables relating toinvestment activities

Payables to FundManager andSupervising Bank

Other payables

II - EQUITY

Contributed capitalfrom investors

Retained profits

TOTAL RESOURCES

Code Note 31/12/2007VND

110

120 12

130 3

131

200

300

311

315

4

5

318

400

410 6

420

430

23,618,290,757

645,219,129,802

6,148,841,205

2,250,000,000

677,236,261,764

9,829,229,059

4,002,679,380

5,610,725,079

215,824,600

667,407,032,705

500,000,000,000

167,407,032,705

677,236,261,764

A - T>I S@N

Tin gi ngn hng

[u t chng khon

Phi thu t hot {ng{u t

Phi thu khc

TNG T>I S@N

B - NGUN VNI - N PH@I TR@

Phi tr t cc hot {ng{u t

Phi tr cho Cng tyQun l Qu v Ngnhng Gim st

Phi tr khc

II - VN CH S HU

Vn gflp t cc nh{u t

Li nhun cha phn phi

TNG NGUN VN

M s Thuytminh

31/12/2007VN[

110

120 12

130 3

131

200

300

311

315

4

5

318

400

410 6

420

430

23.618.290.757

645.219.129.802

6.148.841.205

2.250.000.000

677.236.261.764

9.829.229.059

4.002.679.380

5.610.725.079

215.824.600

667.407.032.705

500.000.000.000

167.407.032.705

677.236.261.764

Ngn hng Gim st Cng ty Qun l Qu

V Hong TnK ton trng

Phm Ngc BchTng gim {c {iu hnh

Supervising Bank Fund Manager

Vu Hoang TanChief Accountant

Bui Thu ThuyDeputy Head of HSBCSecurities Services Vietnam


Pham Ngoc BichChief Executive Officer

46


25/40




Statement of income for the periodfrom 5 October 2006 to 31 December 2007

Qu [u T Cn Bng Prudential (PRUBF1)

Bo co kt qu hot {ng {u t cho giai {ont ngy 5 thng 10 nm 2006 {n ngy 31 thng 12 nm 2007

A - REALISED OPERATINGPROFIT

I - Realised income frominvestment activities

Dividends income

Interest income from bonds

Interest income from bankdeposits

Gains on securities trading

Other incomeII - Expenses

Fund management andperformance fees

Asset supervision andmanagement fees

Expenses for fund meetingsand conferences

Audit fees

Other expenses

III - Net realised operatingprofit for the period

B - UNREALISED PROFIT

I - Unrealised gains

Revaluation gains on

securities investmentsII - Unrealised losses

Revaluation losses onsecurities investments

III - Net unrealised operatingprofit for the period

Net profit for the period

Code NotePeriod from5/10/2006 to

31/12/2007 (VND)

10

11

12

13

14

1830

31 7

32

33

34

38

50

60

6170

71

80

133,900,658,637

1,200,212,100

39,277,349,317

6,820,664,399

86,595,736,026

6,696,795(20,696,273,000)

(19,333,262,231)

(520,110,093)

(399,319,909)

(208,195,000)

(235,385,767)

113,204,385,637

60,519,652,664

60,519,652,664(6,317,005,596)

(6,317,005,596)

54,202,647,068

167,407,032,705

A - KT QU@ HO]T [NG[\ THC HIN

I - Thu nhp t hot {ng{u t { thc hin

Thu nhp t c tc

Thu nhp t li tri phiu

Thu nhp t tin li gingn hng

Thu nhp t hot {ngmua bn chng khon

Thu nhp khc

II - Chi ph

Ph qun l qu v thnghot {ng

Ph gim st v qun l tisn

Chi ph hp v {i hi ca qu

Chi ph kim ton

Chi ph khc

III - Li nhun thun { thchin trong k

B - KT QU@ HO]T [NGCHA THC HIN

I - Thu nhp cha thc hin

Thu nhp do {nh gi likhon {u t chng khon

II - L cha thc hin

L do {nh gi li khon{u t chng khon

III - Li nhun thun chathc hin trong k

Li nhun thun trong k

M s Thuytminh

Giai {on t5/10/2006 {n

31/12/2007 (VN[)

10

11

12

13

14

18

30

31 7

32

33

34

38

50

60

61

70

71

80

133.900.658.637

1.200.212.100

39.277.349.317

6.820.664.399

86.595.736.026

6.696.795

(20.696.273.000)

(19.333.262.231)

(520.110.093)

(399.319.909)

(208.195.000)

(235.385.767)

113.204.385.637

60.519.652.664

60.519.652.664

(6.317.005.596)

(6.317.005.596)

54.202.647.068

167.407.032.705


V Hong TnK ton trng






Bui Thu ThuyDeputy Head of HSBC

Securities Services Vietnam

48


26/40




Bo co thay {i vn ch s hu cho giai {on

t ngy 5 thng 10 nm 2006 {n ngy 31 thng 12 nm 2007


Statement of changes in equity

for the period from 5 October 2006 to 31 December 2007

S d tingy 5 thng10 nm 2006

Vn gflp bngtin mt t ccnh {u t

Li nhun

thun trong k

S d tingy 31thng 12nm 2007

Tng cngVN[

Li nhun chaphn phi

VN[Vn gflp

VN[

------

500.000.000.000---500.000.000.000

167.407.032.705167.407.032.705--

667.407.032.705167.407.032.705500.000.000.000

Balance at 5October 2006

Capitalcontribution incash frominvestors

Net profit for the

period

Balance at 31December2007

TotalVND

Retained profitsVND

ContributedcapitalVND

------

500,000,000,000---500,000,000,000

167,407,032,705167,407,032,705--

667,407,032,705167,407,032,705500,000,000,000


V Hong TnK ton trng







50


27/40




Bo co lu chuyn tin t cho giai {ont ngy 5 thng 10 nm 2006 {n ngy 31 thng 12 nm 2007


Statement of cash flows for the periodfrom 5/10/2006 to 31/12/2007

Net profit for the period

Adjustments for

Dividends income

Gains on securities trading

Interest income

Unrealised revaluation gains onsecurities investments

Unrealised revaluation losses onsecurities investments

Operating loss before changes inworking capital

Increase in receivables frominvestment activities

Increase in current liabilities

Interest received

Dividends received

Deposits for acquisitions of securities

Acquisitions of securities investments

Proceeds from securities trading

Net cash used in operating activities

Proceeds from capital contribution

Net cash generated from financingactivities

Net cash flows during theperiod/Cash and cash equivalents atthe end of the period

Period from 5/10/2006to 31/12/2007 (VND)

167,407,032,705

(1,200,212,100)

(86,595,736,026)

(46,098,013,716)

(60,519,652,664)

6,317,005,596

(20,689,576,205)

(6,148,841,205)

9,829,229,059

46,098,013,716

1,200,212,100

(2,250,000,000)

(800,542,382,830)

296,121,636,122

(476,381,709,243)

500,000,000,000

500,000,000,000

23,618,290,757

CASH FLOWS FROM OPERATING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Li nhun thun trong k

[iu chnh cho cc khon

Thu nhp t c tc

Thu nhp t bn chng khon

Thu nhp tin li

Thu nhp do {nh gi li khon {ut chng khon

L do {nh gi li khon {u tchng khon

L t hot {ng {u t trc nhngthay {i vn lu {ng

Tng khon phi thu t hot {ng{u t

Tng n ngn hn

Tin li thu {c

C tc thu {c

Tin cc mua chng khon

Tin mua chng khon

Tin thu {c t bn chng khon

Tin thun chi cho hot {ng {u t

Tin thu t vn gflp

Tin thun thu t hot {ng tichnh

Lu chuyn tin thun trong k/ Tinv cc khon tng {ng tin cui k

Giai {on t 5/10/2006{n 31/12/2007

VN[

167.407.032.705

(1.200.212.100)

(86.595.736.026)

(46.098.013.716)

(60.519.652.664)

6.317.005.596

(20.689.576.205)

(6.148.841.205)

9.829.229.059

46.098.013.716

1.200.212.100

(2.250.000.000)

(800.542.382.830)

296.121,636.122

(476.381.709.243)

500.000.000.000

500.000.000.000

23.618.290.757

LU CHUYN TIN T HO]T [NG [U T

LU CHUYN TIN T HO]T [NG T>I CHNH


V Hong TnK ton trng







52


28/40




Notes to the financial statements for the period

from 5 October 2006 to 31 December 2007

These notes form an integral part of and should be read in

conjunction with the accompanying financial statements.

1. Background

Prudential Balanced Fund (the Fund) is incorporated in Vietnam as a

securities investment mutual fund under Registration Establishment

Certificate No. 02/UBCK-GPQDT dated 19 July 2006 and Fund

Establishment Certificate No. 06/UBCK-DKQDT dated 5 October 2006

issued by the State Securities Commission of Vietnam. The

Registration Establishment Certificate is valid for 7 years from the date

of the certificate.

The Fund received the Listing Approval No. 02/UBCK-GPNY from the

State Securities Commission of Vietnam which allows its fund units to

be listed and traded on the Ho Chi Minh Stock Exchange under the

stock code namely PRUBF1.

The maximum total capital of the Fund as stipulated in the

Registration Establishment Certificate is VND500 billion. The amount

of each fund unit, an equal division of the total capital of the Fund, is

VND10,000. Total maximum number of fund units is 50,000,000.

The Fund is managed by Prudential Vietnam Securities Investment

Fund Management Company Limited, an investment management

company incorporated in Vietnam, and supervised by The HongKong

and Shanghai Banking Corporation Limited - Ho Chi Minh City Branch.

2. Summary of significant accounting policies

The following significant accounting policies have been adopted by

the Fund in the preparation of these financial statements.

(a) Basis of financial statement preparation

The financial statements, expressed in Vietnam Dong (VND), have

been prepared in accordance with Vietnamese Accounting Standards,

the Vietnamese Accounting System, Decision No. 63/2005/QD-BTC

issued by the Ministry of Finance dated 14 September 2005 on

promulgation of accounting system of securities investment funds and

accounting principles generally accepted in Vietnam.

The financial statements are prepared on the historical cost basis,

except as discussed in Note 2(e). The accounting policies set out

below have been consistently applied by the Fund during the period.

Thuyt minh bo co ti chnh

cho giai {on t ngy 5 thng 10 nm 2006

{n ngy 31 thng 12 nm 2007

Cc thuyt minh ny l b phn hp thnh v cn {c {c {ng thi

vi cc bo co ti chnh {nh km.

1. Thng tin c bn

Qu [u t Cn bng Prudential (Qu) l qu {u t chng khon

cng chng {c thnh lp ti Vit Nam theo Giy chng nhn

{ng k thnh lp s 02/UBCK-GPQ[T ngy 19 thng 7 nm 2006 v

Giy chng nhn lp qu s 06/UBCK-[KQ[T ngy 5 thng 10 nm

2006 do y ban chng khon Nh nc Vit Nam cp. Giy chng

nhn {ng k thnh lp cfl gi trfi trong vng 7 nm k t ngy cp

giy chng nhn.

Qu { nhn {c Giy php nim yt s 02/UBCK-GPNY do y ban

chng khon Nh nc Vit Nam cp, cho php chng ch Qu {c

nim yt v giao dfich ti Trung tm Giao dfich Chng khon Thnh

ph H Ch Minh vi m chng khon l PRUBF1.

Tng s vn ti {a ca Qu {c quy {finh trong Giy chng nhn

{ng k thnh lp l 500 t VN[. Mnh gi chng ch qu, chia {u

theo tng vn ca Qu, l 10.000 VN[. S chng ch qu ti {a {c

pht hnh l 50.000.000.

Qu {c qun l bi Cng ty TNHH Qun l Qu [u t Chng

khon Prudential Vit Nam, mt cng ty qun l qu {u t {c

thnh lp ti Vit Nam, v {c gim st bi Ngn hng Hng Kng

v Thng Hi - Chi nhnh Thnh ph H Ch Minh.

2. Tflm tt nhng chnh sch k ton ch yu

Sau {y l nhng chnh sch k ton ch yu {c Qu p dng trong

vic lp cc bo co ti chnh ny.(a) C s lp bo co ti chnh

Cc bo co ti chnh {c trnh by bng {ng Vit Nam (VN[),

{c lp theo cc Chun mc K ton Vit Nam, H thng K ton

Vit Nam, Quyt {finh s 63/2005/Q[-BTC do B Ti chnh ban hnh

ngy 14 thng 9 nm 2005 v ch { k ton ca qu {u t chng

khon v cc nguyn tc k ton {c p dng ph bin ti Vit Nam.

Cc bo co ti chnh {c lp trn c s gi gc, ngoi tr nhng

vn { {c trnh by Thuyt minh 2(e). Cc chnh sch k ton

trnh by sau {y {c Qu p dng mt cch nht qun trong sut

k k ton.

54


29/40



(b) Nm ti chnh

K ti chnh {u tin ca Qu t ngy 5 thng 10 nm 2006 {n ngy31 thng 12 nm 2007. Nhng nm ti chnh tip theo s bt {u t

ngy 1 thng 1 {n ngy 31 thng 12.

(c) Cc giao dfich bng ngoi t

Cc khon mc ti sn v n phi tr cfl gc bng {n vfi tin t khc

VN[ {c quy {i sang VN[ theo t gi hi {oi ca ngy kt thc

nin { k ton. Cc giao dfich bng cc {n vfi tin khc VN[ trong

k {c quy {i sang VN[ theo t gi hi {oi ti ngy giao dfich. Tt

c cc khon chnh lch t gi cha thc hin v { thc hin {c

hch ton vo bo co kt qu hot {ng trong k.

(d) Tin v cc khon tng {ng tin

Tin bao gm tin mt v tin gi ngn hng khng k hn. Cc

khon tng {ng tin l cc khon {u t ngn hn cfl tnh thanh

khon cao, cfl th d dng chuyn {i sang mt lng tin xc {finh,

khng cfl nhiu ri ro v thay {i gi trfi v {c s dng cho mc {ch{p ng cc cam kt chi tin ngn hn hn l cho mc {ch {u t

hay l cc mc {ch khc.

(e) [u t

Qu ghi nhn cc khon {u t vo ngy Qu k kt hp {ng {u t

(k ton theo ngy giao dfich).

Theo Quyt {finh s 63/2005/Q[-BTC do B Ti chnh Vit Nam ban

hnh ngy 14 thng 9 nm 2005 v ch { k ton ca qu {u t

chng khon, Qu phi {nh gi li cc khon {u t vo cui k bo

co theo gi trfi hp l . [ thc hin theo Quyt {nh s 63/2005/Q[-

BTC, Qu p dng cc chnh sch k ton sau {y { ghi nhn v

{nh gi cc khon {u t:

Ban {u cc khon {u t {c ghi nhn theo gi gc. Sau ghi nhn

ban {u, tt c cc khon {u t {c xc {finh theo gi trfi hp l .

Cc khon li hay l do thay {i gi trfi hp l ca cc khon {u t

{c ghi nhn trong bo co kt qu hot {ng {u t trong k

pht sinh.

Gi trfi hp l ca cc khon {u t giao dfich trn thfi trng nim yt

{c xc {finh da vo gi thfi trng nim yt ti ngy lp bng cn

{i k ton. Gi trfi hp l ca cc khon {u t giao dfich trn thfi

trng chng khon phi tp trung, {c xc {finh da vo gi giao

dfich bnh qun ti ngy lp bng cn {i k ton thu thp t mt s

t chc {c lp.

(b) Fiscal year

The first fiscal period of the Fund is from 5 October 2006 to 31 December2007. Succeeding fiscal years will be from 1 January to 31 December.

(c) Foreign currency transactions

Monetary assets and liabilities denominated in currencies other than

VND are translated into VND at rates of exchange ruling at the

balance sheet date. Transactions in currencies other than VND during

the period have been translated into VND at rates approximating

those ruling at the transaction dates. All realised and unrealised

foreign exchange differences are recorded in the statement of income.

(d) Cash and cash equivalents

Cash comprises cash balances and call deposits. Cash equivalents are

short-term highly liquid investments that are readily convertible to

known amounts of cash, are subject to an insignificant risk of changes

in value, and are held for the purpose of meeting short-term cash

commitments rather than for investment or other purposes.(e) Investments

The Fund recognises investments on the date it becomes a party to

the contractual provisions of the investments (trade date accounting).

In accordance with Decision No. 63/2005/QD-BTC issued by the Ministry

of Finance dated 14 September 2005 on promulgation of accounting

system of securities investment funds, the Fund is required to measure

its investments at fair value at each reporting date. To implement

Decision No. 63/2005/QD-BTC dated 14 September 2005, the Fund

has adopted the following accounting policies for recognition and

measurement of its investments:

Investments are initially stated at cost. Subsequent to initial recognition,

all investments are measured at fair value. Gains and losses arising

from the changes in the fair value of the investments are presented in

the statement of income in the period in which they arise.

The fair value of investments traded in active markets is based on

quoted market prices at the balance sheet date. Certain investments

made by the Fund are traded in over the counter market. The fair value

of these investments is determined by reference to the average price at

the balance sheet date obtained from several independent parties.

56


30/40



(f) Khon phi thu

Khon phi thu t hot {ng {u t v phi thu khc {c phn nhtheo nguyn gi tr {i d phng phi thu khfl {i.

(g) Khon phi tr

Khon phi tr lin quan {n hot {ng {u t v phi tr khc {c

phn nh theo nguyn gi.

(h) D phng

D phng {c ghi nhn khi, do kt qu ca mt s kin trong qu

kh, Qu cfl mt ngha v php l hoc lin {i m cfl th {c c

tnh mt cch tin cy v tng {i chc chn rng Qu phi s dng

cc li ch kinh t trong tng lai { thanh ton ngha v {fl. D phng

{c xc {finh bng cch chit khu cc lung tin d tnh trong

tng lai theo li sut trc thu phn nh {c s {nh gi hin ti

ca thfi trng v gi trfi thi gian ca {ng tin v nhng ri ro gn

lin vi khon n phi tr {fl.

(i) ThuTheo lut hin hnh ca Vit Nam, Qu khng phi np thu thu

nhp doanh nghip.

(j) Thu nhp li v thu nhp c tc

Thu nhp li {c ghi nhn trong bo co kt qu hot {ng {u t

ngay khi li pht sinh trn c s trch trc tr khi cc khon li ny

khfl thu hi. Thu nhp c tc {c ghi nhn khi quyn {c nhn

khon thanh ton c tc {c hng.

(k) Cng ty lin quan

Cc bn {c xem l bn lin quan nu bn {fl cfl kh nng, trc tip

hoc gin tip, kim sot bn kia hoc cfl nh hng trng yu {i vi

bn kia khi ra cc quyt {finh ti chnh v hot {ng. Cc bn cng

{c xem l bn lin quan nu cc bn chfiu s kim sot chung hoc

nh hng trng yu chung.

(l) Cc ch tiu ngoi bng cn {i k tonCc ch tiu ngoi bng cn {i k ton, nh {c {finh ngha trong

Quyt {finh s 63/2005/Q[-BTC do B Ti chnh ban hnh ngy 14

thng 9 nm 2005 v ch { k ton ca qu {u t chng khon v

H thng k ton Vit Nam {c trnh by trong cc thuyt minh lin

quan ca cc bo co ti chnh ny.

(m) S d bng khng

Cc khon mc hoc s d, quy {finh bi Quyt {finh s 63/2005/Q[-

BTC do B Ti chnh ban hnh ngy 14 thng 9 nm 2005 v ch {

k ton ca qu {u t chng khon v H thng K ton Vit Nam,

nu khng {c trnh by trong bo co ti chnh ny {c xem l cfl

s d bng khng.

(f) Accounts receivable

Receivables from investment activities and other receivables are statedat cost less allowance for doubtful debts.

(g) Accounts payables

Payables relating to investment activities and other payables are stated

at their cost.

(h) Provisions

A provision is recognised if, as a result of a past event, the Fund has a

present legal or constructive obligation that can be estimated reliably,

and it is probable that an outflow of economic benefits will be required

to settle the obligation. Provisions are determined by discounting the

expected future cash flows at a pre-tax rate that reflects current

market assessments of the time value of money and the risks specific

to the liability.

(i) Taxation

Under current regulations in Vietnam, the Fund is not subject tocorporate income tax.

(j) Interest income and dividend income

Interest income is recognised in the statement of income as the interest

accrues unless collectibility is in doubt. Dividend income is recognised

when the right to receive payment is established.

(k) Related companies

Parties are considered to be related if one party has the ability, directly

or indirectly, to control other party or exercise significant influence

over the other party in making financial and operating decisions.

Parties are also considered to be related if they are subject to common

control or common significant influence.

(l) Off balance sheet items

Amounts which are defined as off balance sheet items under the

Decision No. 63/2005/QD-BTC dated 14 September 2005 issued bythe Ministry of Finance on promulgation of accounting system of

securities investment funds and Vietnamese Accounting System are

disclosed in the relevant notes to these financial statements.

(m) Nil balances

Items or balances required by the Decision No. 63/2005/QD-BTC

issued by the Ministry of Finance dated 14 September 2005 on

promulgation of accounting system of securities investment funds and

Vietnamese Accounting System that are not shown in these financial

statements indicate nil balances.

58


31/40

Li tri phiu phi thu

C tc tr bng c phiu phi thu

31/12/2007

VN[

6.073.445.000

75.396.2056.148.841.205

Interest receivables from bonds

Stock dividends

31 December 2007

VND

6,073,445,000

75,396,2056,148,841,205

Ph qun l qu phi tr cho Cng tyQun l qu

Thng hot {ng phi tr cho Cng tyQun l qu

Ph gim st phi tr cho Ngn hngGim st

31/12/2007

VN[

2.244.636.796

3.329.874.751

36.213.532

5.610.725.079

Management fees payable to FundManager

Performance fees payable to FundManager

Supervising fees payable to SupervisingBank

31 December 2007

VND

2,244,636,796

3,329,874,751

36,213,532

5,610,725,079

Khon {u t mua ch thanh ton

31/12/2007

VN[

4.002.679.380



3. Phi thu t hot {ng {u t3. Receivables from investment activities

Theo chnh sch k ton theo ngy giao dfich ca Qu {i vi cc

giao dfich mua thng thng, khon {u t mua ch thanh ton l

cc khon phi tr khi mua chng khon, nhng cha thanh ton.

5. Phi tr cho cng ty Qun l qu v Ngn hng gim st

Purchases awaiting settlement

31 December 2007

VND

4,002,679,380

In accordance with the Fund's policy of trade date accounting for regular

way purchase transactions, purchases awaiting settlement represent

amounts payable for securities purchased, but not yet settled.

5. Payables to Fund Manager and Supervising Bank

6. Vn gflp t cc nh {u t

Vn php {finh {c duyt v { gflp ca Qu l 500 t VN[, tng

{ng 50.000.000 chng ch qu vi mnh gi l 10.000 VN[ michng ch qu. Ti ngy 31 thng 12 nm 2007, vn php {finh {c

duyt ca Qu {u t { {c cc nh {u t gflp {.

6. Contributed capital from investors

The Fund's authorised and contributed legal capital is VND500

billion, equivalent to 50,000,000 fund units at VND10,000 perunit. As at 31 December 2007, the Fund's authorised legal capital

has been fully contributed by the investors.

4. Phi tr cho cc hot {ng {u t4. Payables relating to investment activities

60


32/40

Theo Hp {ng Qun l Qu, Cng ty Qun l Qu s nhn ph qun

l qu hng thng bng 2%/12 thng trn gi trfi ti sn rng ca Qu

{c xc {finh vo ngy cui thng.

Cng ty Qun l Qu cng {c nhn khon thng hot {ng lin

quan {n bt k nm ti chnh no nu (i) gi trfi ti sn rng ca mt

chng ch qu vo cui nm ny vt qu mnh gi (10.000 VN[) v

(ii) kt qu hot {ng {u t ca Qu vt qu mt mc { {c xc

{finh trc. Khon ph ny {c tr trong thng {u tin ca nm ti

chnh tip theo.

8. Cc giao dfich ch yu vi cc bn lin quan

Cc giao dfich ch yu vi cc bn lin quan trong k nh sau:

Under the Fund Management Agreement, the Fund Manager receives

a management fee monthly in arrears of 2%/12 of the net assets

attributable to the holders of the fund units on the last valuation day

of the month.

The Fund Manager also receives a performance fee in relation to any

financial year if (i) the net assets value per unit at the end of such year

exceeds its par value (VND10,000) and (ii) the performance of the

Fund for that year exceeds a pre-determined benchmark, as defined in

the Fund Charter, agreed upon between the Fund and the Fund

Manager. The fee shall be payable in the first month of the following

financial year.

8. Significant transactions with related parties

During the period there were the following significant transactions

with related parties:

Ph qun l

Thng hot {ng

Giai {on t

5/10/2006

{n 31/12/2007

VN[

16.003.387.480

3.329.874.751

19.333.262.231

Management fees

Performance fees

Period from

5 October 2006 to

31 December 2007

VND

16,003,387,480

3,329,874,751

19,333,262,231

7. Ph qun l v thng hot {ng7. Fund management and performance fees



Cng ty TNHHQun l Qu[u t Chngkhon PrudentialVit Nam

Cng tyqun lqu

Ph qun lqu

Thnghot {ng

Giai {on t

5/10/2006

{n 31/12/2007

VN[

Bn lin quan Quan h Tnh cht

giao dfich

16.003.387.480

3.329.874.751

Prudential VietnamSecurities

Investment FundManagementCompany

FundManager

Fundmanagement

feesPerformancefees

Period from

5 October 2006 to

31 December 2007

VND

Related Party Relationship Nature of

transaction

16,003,387,480

3,329,874,751

62


33/40

Tin gi ngn hng

[u t chng khon

C phiu nim yt

C phiu cha nim yt

Tri phiu

Phi thu t hot {ng {u tPhi thu khc

Tng ti sn

Phi tr cho cc hot {ng {u t

Phi tr cho Cng ty Qun l qu vNgn hng Gim st

Phi tr khc

Tng n phi tr

Gi trfi ti sn thun

S lng chng ch qu

Gi trfi ti sn thun mt {n vfi qu

31/12/2007

VN[

23.618.290.757

645.219.129.802

208.918.972.500

103.071.077.302

333.229.080.000

6.148.841.2052.250.000.000

677.236.261.764

(4.002.679.380)

(5.610.725.079)

(215.824.600)

(9.829.229.059)

667.407.032.705

50.000.000

13.348

Cash at banks


Listed shares

Unlisted shares

Bonds

Receivables from investment activitiesOther receivables

Total assets

Payables relating to investment activities

Payables to Fund Manager andSupervising Bank

Other payables

Total liabilities

Net assets

Number of fund units

Net assets per fund unit

31 December 2007

VND

23,618,290,757

645,219,129,802

208,918,972,500

103,071,077,302

333,229,080,000

6,148,841,2052,250,000,000

677,236,261,764

(4,002,679,380)

(5,610,725,079)

(215,824,600)

(9,829,229,059)

667,407,032,705

50,000,000

13,348



9. Mt s ch tiu9. Indices

10. Bo co ti sn10. Report on assets

I - Cc ch s v tnh hnh hot {ng {u t

[u t chng khon / Gi trfi ti sn thun

[u t c phiu / Gi trfi ti sn thun

C phiu nim yt / Gi trfi ti sn thun

C phiu cha nim yt / Gi trfi ti sn thun

Tri phiu / Gi trfi ti sn thun

Tin v khon tng {ng tin / Gi trfi tisn thun

Thu nhp bnh qun / Gi trfi ti sn thun

Chi ph bnh qun / Gi trfi ti sn thun

II - Cc ch s v thfi trngS lng chng ch qu ti ngy31 thng 12 nm 2007

Gi trfi ti sn thun mt {n vfi qu ti ngy31 thng 12 nm 2007 thng 12 nm 2007

Giai {on t

5/10/2006

{n 31/12/2007

16.003.387.480

96,68%

46,75%

31,30%

15,44%

49,93%

3,54%

28,18%

3,10%

50.000.000

13.348

I - Investment ratios

Securities investments/Net assets

Shares investments/Net assets

Listed shares/Net assets

Unlisted shares/Net assets

Bonds/Net assets

Cash and equivalents/Net assets

Average income/Net assets

Average expenses/Net assets

II - Market ratios

Number of fund units as at31 December 2007

Net assets per fund unit as at31 December 2007 (VND)

Period from

5 October 2006 to

31 December 2007

16.003.387.480

96.68%

46.75%

31.30%

15.44%

49.93%

3.54%

28.18%

3.10%

50,000,000

13,348

64


34/40



11. Bo co thay {i gi trfi ti sn thun11. Report on changes in net assets

12. Bo co danh mc {u t

12. Report on investment portfolios

Gi trfi ti sn thun ti ngy 5 thng 10nm 2006

Thay {i gi trfi ti sn thun trong k

Thay {i gi trfi ti sn thun do hot{ng {u t trong k

Vn gflp t cc nh {u t

Gi trfi ti sn thun ti ngy 31 thng12 nm 2007

Giai {on t5/10/2006

{n 31/12/2007

VN[

--

667.407.032.705

167.407.032.705

500.000.000.000

667.407.032.705

Net assets as at 5 October 2006

Changes in net assets during the period

Changes in net assets frominvestment activities during the period

Contributed capital

Net assets as at 31 December 2007

Period from5 October 2006

31 December 2007

VND

--667,407,032,705

167,407,032,705

500,000,000,000

667,407,032,705

[u t chng khon

I - C phiu nim yt

Asia Commercial Bank

An Giang Fisheries Import & Export Joint Stock Company

Bao Minh Insurance Corporation

Binh Minh Plastic Joint Stock Company

Bao Viet Securities Company

HCMC Infrastructure Investment Joint Stock Company

Hau Giang Pharmaceutical Company

Corporation for Financing and Promoting Technology

General Forwarding & Agency Corporation

%

Tng gi trfi thfitrng ngy

31/12/2007

VN[

Gi trfi thfi trngmt {n vfi ngy

31/12/2007

VN[

S

lngLoi

110.330 164.000 18.094.120.000 2,71%

208.918.972.500 31,30%

645.219.129.802 96,68%

30.630 83.000 2.542.290.000 0,38%

105.400 79.400 8.368.760.000 1,25%

45.200 165.000 7.458.000.000 1,12%

3.000 210.000 630.000.000 0,09%

22.230 64.000 1.422.720.000 0,21%

6 234.000 1.404.000 0,00%

5 223.000 1.115.000 0,00%

52.830 133.000 7.026.390.000 1,05%


I - Listed shares

Asia Commercial Bank

An Giang Fisheries Import & Export Joint Stock Company

Bao Minh Insurance Corporation

Binh Minh Plastic Joint Stock Company

Bao Viet Securities Company

HCMC Infrastructure Investment Joint Stock Company

Hau Giang Pharmaceutical Company

Corporation for Financing and Promoting Technology

General Forwarding & Agency Corporation

%Fair value as at1 December 2007

VND

Fair value per

unit as at1 December 2007

VND

UnitsItems

110,330 164,000 18,094,120,000 2.71%

208,918,972,500 31.30%

645,219,129,802 96.68%

30,630 83,000 2,542,290,000 0.38%

105,400 79,400 8,368,760,000 1.25%

45,200 165,000 7,458,000,000 1.12%

3,000 210,000 630,000,000 0.09%

22,230 64,000 1,422,720,000 0.21%

6 234,000 1,404,000 0.00%

5 223,000 1,115,000 0.00%

52,830 133,000 7,026,390,000 1.05%

66


35/40



90.000 95.000 8.550.000.000 1,28%

258.000 74.000 19.092.000.000 2,86%

68.300 46.300 3.162.290.000 0,47%

64.770 123.000 7.966.710.000 1,19%

5.000 123.000 615.000.000 0,09%

21.580 90.000 9.700.000.000 1,45%

19.670 68.000 1.337.560.000 0,20%

194.000

Tan Tao Industrial Park Corporation

Kinh Do Corporation

Minh Phu Seafood Joint Stock Company

North Kinh Do Food Joint Stock Company

Tien Phong Plastic Company

Petro Vietnam Drilling

Refrigeration Electrical Engineering Corporation

Saigon Securities Inc

Saigon Commercial Bank

Taicera Enterprise Company Limited

Tan Tien Plastic Packaging Joint Stock Company

Vincom Joint Stock Company

Vietnam Dairy Products Company

Vietnam Tanker Joint Stock Company

Petro Vietnam Fertilizer and Chemicals Company

Hoa Phat Group

Tuong An Vegetable Oil Joint Stock Company

Ha Tien 1 Cement Joint Stock Company

Nam Viet Corporation (Navico)

Da Nang Rubber Joint Stock Company

Dry Cell & Storage Battery Joint Stock Company

44.100 60.000 2.646.000.000 0,40%

44.664 176.000 7.860.864.000 1,18%

90.000 113.900 10.251.000.000 1,54%

70.800 152.000 10.761.600.000 1,61%

60.000 137.000 8.220.000.000 1,23%

105.000 168.000 17.640.000.000 2,64%

99.161 65.500 6.495.045.500 0,97%

68.320 28.600 1.953.952.000 0,29%

154.252 106.000 16.350.712.000 2,45%

50.000 155.000 7.750.000.000 1,16%

55.000 59.500 3.272.500.000 0,49%

50.190 166.000 8.331.540.000 1,25%

75.200 126.000 9.475.200.000 1,42%

50.000 9.700.000.000 1,45%

90,000 95,000 8,550,000,000 1.28%

258,000 74,000 19,092,000,000 2.86%

68,300 46,300 3,162,290,000 0.47%

64,770 123,000 7,966,710,000 1.19%

5,000 123,000 615,000,000 0.09%

21,580 90,000 9,700,000,000 1.45%

19,670 68,000 1,337,560,000 0.20%

194,000

Tan Tao Industrial Park Corporation

Kinh Do Corporation

Minh Phu Seafood Joint Stock Company

North Kinh Do Food Joint Stock Company

Tien Phong Plastic Company

Petro Vietnam Drilling

Refrigeration Electrical Engineering Corporation

Saigon Securities Inc

Saigon Commercial Bank

Taicera Enterprise Company Limited

Tan Tien Plastic Packaging Joint Stock Company

Vincom Joint Stock Company

Vietnam Dairy Products Company

Vietnam Tanker Joint Stock Company

Petro Vietnam Fertilizer and Chemicals Company

Hoa Phat Group

Tuong An Vegetable Oil Joint Stock Company

Ha Tien 1 Cement Joint Stock Company

Nam Viet Corporation (Navico)

Da Nang Rubber Joint Stock Company

Dry Cell & Storage Battery Joint Stock Company

44,100 60,000 2,646,000,000 0.40%

44,664 176,000 7,860,864,000 1.18%

90,000 113,900 10,251,000,000 1.54%

70,800 152,000 10,761,600,000 1.61%

60,000 137,000 8,220,000,000 1.23%

105,000 168,000 17,640,000,000 2.64%

99,161 65,500 6,495,045,500 0.97%

68,320 28,600 1,953,952,000 0.29%

154,252 106,000 16,350,712,000 2.45%

50,000 155,000 7,750,000,000 1.16%

55,000 59,500 3,272,500,000 0.49%

50,190 166,000 8,331,540,000 1.25%

75,200 126,000 9,475,200,000 1.42%

50,000 9,700,000,000 1.45%

68


36/40



153.000 100.000 15.300.000.000 2,29%

50 1.000.000.000 50.000.000.000 7,49%

500.000 100.804 50.401.800.000 7,55%

1.700.000 98.626 167.664.030.000 25,12%

333.229.080.000 49,93%

(1.430.387.854) (0,21%)

23.618.290.757 3,54%

667.407.032.705 100%

25.000 997.332 24.933.292.500 3,74%

II - C phiu cha nim yt

Dien Quang Joint Stock Company

Vietnam Export Import Commercial Joint Stock Bank

Saigon Paper Joint Stock Company

Saigon Western Beer Joint Stock Company

Intresco Joint Stock Company

Au Lac Joint Stock Company

Vietnam Tourism Company

Development Investment Construction Company

III - Tri phiu

TBA101016

TBA101021

CII 10.3 090714

EVN 9.6 081116

BID10406

QH062128

Ti sn thun khc

Tin v cc khon tng {ng

Tng gi trfi ti sn thun

28.000 268.700 7.523.600.000 1,13%

103.071.077.302 15,45%

4.943 6.608.300 32.664.826.900 4,90%

500.000 55.280 27.640.081.835 4,14%

145.000 77.200 11.194.000.000 1,68%

60.000 140.700 8.442.000.000 1,26%

161.000 70.500 11.350.500.000 1,70%

14.500 124.443 1.804.417.567 0,27%

40.191 61.000 2.451.651.000 0,37%

25.000 997.198 24.929.957.500 3,74%

153,000 100,000 15,300,000,000 2.29%

50 1,000,000,000 50,000,000,000 7.49%

500,000 100,804 50,401,800,000 7.55%

1,700,000 98,626 167,664,030,000 25.12%

333,229,080,000 49.93%

(1,430,387,854) (0.21%)

23,618,290,757 3.54%

667,407,032,705 100%

25,000 997,332 24,933,292,500 3.74%

II - Unlisted shares

Dien Quang Joint Stock Company

Vietnam Export Import Commercial Joint Stock Bank

Saigon Paper Joint Stock Company

Saigon Western Beer Joint Stock Company

Intresco Joint Stock Company

Au Lac Joint Stock Company

Vietnam Tourism Company

Development Investment Construction Company

III - Bonds

TBA101016

TBA101021

CII 10.3 090714

EVN 9.6 081116

BID10406

QH062128

Other net assets

Cash and equivalents

Total net assets

28,000 268,700 7,523,600,000 1.13%

103,071,077,302 15.45%

4,943 6,608,300 32,664,826,900 4.90%

500,000 55,280 27,640,081,835 4.14%

145,000 77,200 11,194,000,000 1.68%

60,000 140,700 8,442,000,000 1.26%

161,000 70,500 11,350,500,000 1.70%

14,500 124,443 1,804,417,567 0.27%

40,191 61,000 2,451,651,000 0.37%

25,000 997,198 24,929,957,500 3.74%

70


37/40



Tt c cc cng ty {c {u t trn {u thnh lp ti Vit Nam.

Qu khng tham gia vo cc quyt {finh v chnh sch ti chnh vhot {ng hng ngy ca cc cng ty {c {u t. V th, Qu khng

cfl {finh kim sot hay thc thi nh hng trng yu no {n cc

cng ty {c {u t v do vy, cc khon {u t ca Qu {c ghi

nhn da trn c s nu trong Thuyt minh 2(e), thay v phi hp nht

bo co ti chnh hay k ton khon {u t theo phng php vn

ch s hu.

13. S liu so snh

Khng cfl s liu so snh do {y l bo co ti chnh {u tin {c lp

k t khi thnh lp Qu.


V Hong TnK ton trng





All the above investee companies are incorporated in Vietnam.

The Fund does not seek to participate in day-to-day financial andoperating policy decisions of the investee companies. Accordingly, the

Fund does not intend to exert a controlling or significant influence

over the investee companies and therefore, the Fund's investments

are recorded on the basis set out in Note 2(e), rather than being

consolidated or equity accounted.

13. Corresponding figures

There are no corresponding figures as this is the first set of financial

statements prepared by the Fund since its incorporation.




38/40

Prudential VietnamFund ManagementCompany

Cng tyQun lQu [u tPrudentialVit Nam

74


39/40

Cng tyQun lQu [u tPrudentialVit Nam

PrudentialVietnam FundManagement

Company

Established in May 2005, Prudential Vietnam Fund Management Company

(PVFMC) is a leading international fund management firm with the largestinvestor base in Vietnam. PVFMC was established as a wholly-ownedsubsidiary of Prudential Vietnam, which is Vietnam's leading insurance

company. PVFMC operates closely with Prudential Corporation Asia

(PCA), one of the largest asset management companies in terms ofassets sourced in Asia excluding Japan and M&G, a leading UK and

European fund manager.

PVFMC applies a long-term value-oriented investment philosophy toits investment funds and portfolios for both institutional and retail

clients who are domiciled both offshore and onshore in Vietnam,

with total assets under management currently exceeding US$1.4 billion

(as of 31 December 2007).

The local investment team has been develop since 1999, with an

established track record in managing Vietnamese fixed income,Vietnamese listed and OTC equities, Indochina private equity and

property portfolios, on the same global investment platform as PCA,

which operates locally in 13 markets in Asia.

Thnh lp vo thng 5/2005, Cng ty Qun l Qu [u t Prudential

Vit Nam (PVFMC) l cng ty qun l qu quc t hng {u vi slng nh {u t ln nht ti Vit Nam. PVFMC l {n vfi trc thucPrudential Vit Nam - Cng ty Bo him Nhn th hng {u ti Vit Nam.

PVFMC phi hp hot {ng cht ch vi Prudential Chu < ("PCA"),

mt trong nhng cng ty qun l ti sn ln nht tnh theo ti sn cflngun gc ti Chu < ngoi tr Nht Bn v M&G, cng ty qun l qu

hng {u ti Chu u v Vng quc Anh.

PVFMC p dng nguyn tc {u t theo {finh hng gi trfi trongdi hn {i vi cc qu v danh mc {u t cho cc nh {u t c nhn

v nh {u t t chc trong v ngoi nc, vi tng ti sn hin {ang

qun l trfi gi trn 1,4 t { la M (tnh {n 31/12/2007).

[i ng chuyn gia {u t ngay ti Vit Nam { {c hnh thnh v

pht trin t nm 1999, vi thnh tch qun l {u t tri phiu, c phiu

nim yt v cha nim yt, {u t tha thun v bt {ng sntrong vng [ng Dng, hot {ng trn cng mt nn tng {u t

ton cu m PCA {ang p dng ti 13 thfi trng ti Chu


40/40

Ghi chDisclaimerThis information is not an offer or solicitation of an offer for the

purchase of units in the Fund and is intended only for existingshareholders of the Fund. It may not be published, circulated,

reproduced or distributed in whole or part without the written

consent of Prudential Vietnam Fund Management Private Limited

Company (PVFMC).

Whilst we have taken reasonable care to ensure that the

information contained in this material is true and not misleading,

we cannot guarantee its accuracy or completeness. You should

not act on it without independently verifying its contents. Any

opinion or estimate contained in this material is subject to change

without notice. We have not given any consideration to and we

have not made any investigation of the investment objective,

financial situation or particular needs of the recipient or any class

of persons, and accordingly, no warranty is given and no liability

is accepted for any loss arising whether directly or indirectly as a

result of the recipient or any class of persons acting on such

information or opinion estimate. Past performance of the

Investment Manager and any forecasts are not indicative of the

future or likely performance of the Investment Manager. The

value and income from investments may fall or rise. The

projections or forecasts on the economy, securities markets or the

economic trends of the markets targeted by the Fund are not

indicative of the future or li kely performance of the Fund.

Prudential Vietnam Fund Management Private Limited Company

(PVFMC) is owned by Prudential Vietnam Assurance Private

Limited, which is ultimately owned by Prudential plc. of the

United Kingdom. PVFMC and Prudential plc. are not affiliated

with Prudential Financial, Inc., a company whose principal place

of business is in the United States of America.

Nhng thng tin nu trong ti liu ny khng nhm mc {ch

cho mi mua chng ch qu {u t v ch { dnh cho cc nh{u t hin hu. Nhng thng tin ny khng {c php cng b,

pht hnh, sa cha hoc ph bin tng phn hoc ton b nu

khng {c Cng ty Qun l Qu [u t Prudential Vit Nam

(PVFMC) {ng trc bng vn bn.

Chng ti lun n lc cung cp nhng thng tin trung thc

v khch quan trong ti liu ny; tuy nhin, chng ti khng

{m bo gii thiu {y { nhng thng tin m cc nh {u

t mong mun. Cc nh {u t nn cn nhc k cng trc

khi s dng nhng thng tin ny. Mi kin v c tnh nu

trong ti liu ny {u cfl th thay {i m khng cn phi

thng bo trc. Chng ti khng nghin cu, tm hiu mc

tiu {u t, tnh trng ti chnh hoc cc nhu cu c th ca

mi c nhn hoc nhflm ngi no nhn {c ti liu ny.

Do {fl, chng ti khng {m bo v khng chfiu trch nhim

v mi thua l trc tip hoc gin tip xy ra cho mi c

nhn hoc nhflm ngi no s dng nhng thng tin hoc

c tnh nu trong ti liu ny vo mc {ch {u t. Kt qu

hot {ng trong qu kh ca cc nh Qun l qu {u t v

mi d {on khng phi l c s { {m bo nhng kt qu

tng t trong tng lai. Gi trfi v thu nhp t hot {ng

{u t cfl th tng hoc gim. Nhng d {on hoc d bo

v ton b nn kinh t, thfi trng chng khon hoc xu

hng pht trin ca nhng thfi trng m qu {u t {ang

nhm {n khng phi l c s { {m bo qu {u t ny s

{t {c nhng kt qu tng t trong tng lai.

Cng ty Qun l Qu [u t Prudential Vit Nam (PVFMC) l

mt cng ty tr c thuc cng ty TNHH Bo him Nhn th Prudential

Vit Nam, thuc s hu ca Tp {on Prudential Anh Quc.

PVFMC v tp {on Prudential Anh Quc khng cfl mi quan

h g vi cng ty Prudential Financial, Inc., mt cng ty cfl tr

s chnh ti M.

Annual Report 2007

2007-pru annual report

Documents