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PCA International Funds SPC

INTERIM REPORT For the period ended 30 June 2010

UNAUDITED FINANCIAL STATEMENTS For the period ended 30 June 2010


Six months ended 30 June 2010

Contents Page(s)

Company information 1 - 2 Statement of directors’ responsibilities 3 Investment Manager’s report 4 - 6 Condensed interim statement of financial position 7 Condensed interim statement of comprehensive income 8 Condensed interim statement of changes in net assets attributable to holders of non-redeemable participating shares 9 Condensed interim statement of cash flows 10 Notes to the condensed interim financial statements 11 - 20 Schedule of investments 21



1

Board of Directors Alan Christopher Wren

Stephen Paul Bickell Julian Christopher Vivian Pull

Corporate Secretary Harneys Services (Cayman) Limited Registered office 3rd Floor, Queensgate House

113 South Church Street P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands

Investment manager Prudential Asset Management (Singapore) Limited

30 Cecil Street #20-01 Prudential Tower Singapore 049712 (Company Registration No. 199407631H)

Non-discretionary investment portfolio service provider

Prudential Vietnam Securities Investment Fund Management Company Limited 23/F Saigon Trade Centre 37 Ton Duc Thang St., District 1 Ho Chi Minh City Vietnam

Listing sponsor NCB Stockbrokers Limited

3 George’s Dock IFSC Dublin 1 Ireland

Administrator HSBC Trustee (Cayman) Limited

PO Box 484 Strathvale House North Church Street Cayman Islands

Custodian HSBC Institutional Trust Services (Asia) Limited

1 Queen’s Road Central Hong Kong

Auditors KPMG LLP

16 Raffles Quay #22-00 Hong Leong Building Singapore 048581

Company information



2

Legal advisors (as to the Company) Drew & Napier LLC

20 Raffles Place #17-00 Ocean Towers Singapore 048620

(as to the Cayman Islands laws) Harney Westwood & Riegels

1507 The Center 99 Queen’s Road Central Hong Kong

(as to Vietnam laws) Freshfields Bruckhaus Deringer (Vietnam)

#05-01 International Centre 17 Ngo Quyen Centre Hanoi Vietnam

Company information (continued)



3

The directors are responsible for preparing financial statements for each financial period which give a true and fair view of the state of affairs of the Company and its profit or loss for that period. In preparing those financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgments and estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board of Directors confirms that the Company has complied with the above requirements in preparing the financial statements.

The Board of Directors confirms to the best of their knowledge that the Investment Manager’s report includes a fair review of an indication of important events that have occurred during the half year ended 30 June 2010, and their impact on the condensed set of the Company’s unaudited financial statements together with a description of the principal risks and uncertainties that it faces for the remaining six months of the financial year.

On behalf of the Board of Directors

_____________________ _____________________

Director Director

24 August 2010

Statement of directors’ responsibilities



4

Economy

During H1 2010, Vietnam showed signs of recovery. The return of foreign direct investment flows, US$ 8.4bn registered in H1 2010 (H1 2009: US$ 8.9bn)1, has helped shore up the balance of payments in the face of a persistent trade deficit, which was estimated at US$ 6.7bn in H1 2010 (H1 2009: US$ 2.1bn).2 Labour strikes in China may help encourage multi-national companies to accelerate a Vietnam strategy as a secondary manufacturing location. Political turmoil in Thailand may also help Vietnam’s dual attraction as a domestic market and low-cost manufacturing centre. Official Development Assistance inflows, tourism and inward remittances have also helped the balance of payments.

In respect of the currency, the State Bank of Vietnam reset the Vietnamese Dong (“VND”)’s mid-point reference rate on 11 February 2010 to 18,544 VND per US$, a 3.4% depreciation, following a 5.4% devaluation in November 2009.3 The currency had been relatively stable during much of the first half of 2010 however the State Bank of Vietnam reset the mid-point reference rate by 2.1% to 18,932 VND per US$ on 18 August 2010, primarily with the aim of controlling the trade deficit.3 In line with the mid-point reference rate, the VND weakened 3.2% against the US$ from 18,479 (31 December 2009) to 19,070 (30 June 2010), and closed a further 2.2% lower at 19,490 on 19 August 2010.4

Inflation, which has been a persistent concern in Vietnam, initially showed signs of increasing again in early 2010, with the consumer price index (“CPI”) rising by an average of 1.35% per month in Q1.5 However inflation growth abated in Q2 with average CPI growth of 0.21% per month in Q2.5 Overall, the average CPI increased by 8.75% year-on-year in H1 2010 (H1 2009: 10.27%).5 This trend is in part due to softening commodity prices and monetary tightening policies, with the government stopping several of the support schemes put in place in 2009 and removing the cap on lending rates.

With regard to other economic indicators in H1 2010, year-on-year growth of gross domestic product was 6.2% (H1 2009: 3.9%), it is estimated that industrial production value increased by 13.6% (H1 2009: 4.8%) and real retail sales of consumer goods and services increased by 16.4% (H1 2009: 8.8%).6

In summary, the Vietnamese macro-economy appears to have stabilized substantially during the second quarter of 2010 which should have a positive impact on domestic confidence and demand. However, budget cutting and the possibility of double-dip recessions in the developed economies could limit export-led growth. It is expected that the government and State Bank of Vietnam will continue to face challenges in maintaining growth without re-igniting inflation and in controlling the trade deficit.

1 1/1/10 to 20/6/10 for H1 2010 and 1/1/09 to 19/6/09 for H1 2009 2 Source: General Statistics Office of Vietnam 3 Source: State Bank of Vietnam 4 Source: Bloomberg (average of composite rates) 5 Source: General Statistics Office of Vietnam 6 Source: General Statistics Office of Vietnam

Investment Manager’s report



5

Capital Markets

As at 30 June 2010, the Vietnam Index has risen by 115% from its four-year low of 235.5 in February 2009, and by 2.5% since 31 December 2009, closing at 507.1.7 In H1 2010, the Vietnam Index has traded between 477.6 and 549.5.7 If the rally in 2009 was mainly driven by improved earnings outlook in cyclical sectors, such as construction and construction materials, the sideway movement in H1 2010 was likely a function of unbalanced demand and supply in the stock market and concerns over the government’s capability to manage growth and inflation.

In line with relatively good growth of H1 2010's year-on-year real retail sales of an estimated 16.4%, corporate earnings are expected to hold up well in the consumer goods and non-cyclical sectors.8 However, the earnings outlook for the banking sector is not favourable due to shifting policy requirements. There is government pressure for capital increases and a lower net interest margin.

Since 30 June 2010, the Vietnam stock market has seen downward pressure on concerns over the banking sector's ability to comply with the State Bank of Vietnam's tighter capital adequacy requirements, as well as a deterioration in sentiment post Fitch's downgrade of the country's sovereign debt rating.

However, at the current trading range, the Investment Manager views that Vietnamese equities are fair in terms of valuation. The VN Index trades at a 2011 forecast P/E ratio of 10x, a slight discount to regional peers, which is justified given the current uncertainties.9 The progressive movement in the macro outlook through H1 2010 meant that foreign investors were net buyers every month with an average monthly purchase of US$66.3m (H1 2009: -US$3.3m) across both Ho Chi Minh City and Hanoi Stock Exchanges.10 Given the uncertainties in Vietnam’s export markets, it is expected that domestic demand will be a significant driver in H2 2010 and the consumer and technology sectors appear attractive as their growth rates remain quite stable.

Private Equity

As at 30 June 2010, the Vietnam Segregated Portfolio (the “Fund’’)’s Private Equity portfolio included 12 companies accounting for 76.4%11 of Net Asset Value (“NAV”), of which two, Vinasun and Khang Dien, which were originally private companies at the time of the Fund’s investment are now listed on the Ho Chi Minh City Stock Exchange.

In respect of developments within the portfolio since 1 January 2010, Khang Dien was listed on the Ho Chi Minh City Stock Exchange in February, although the Fund had not realised any of its holding as at 30 June 2010. In addition, a partial realisation of Oriental Ford was achieved providing cash proceeds of US$ 1.3m for the Fund.

7 Source: Bloomberg 8 Source: General Statistics Office of Vietnam 9 Source: Bloomberg, as at 19 August 2010 10 Sources: VNDirect Securities, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange 11 79.2% including accrued interest

Investment Manager’s report (continued)



6

As part of the preparation for this interim report the valuations of five of the Fund’s private equity investments as at 30 June 2010 have been reviewed by a Top-Four professional services firm. These investments, which account for approximately 68%12 of NAV, have been valued based on fair value, using a relative valuation approach, in line with the Fund’s valuation policies. Compared with 31 December 2009 audited values, these investments increased by approximately US$ 2.6m in aggregate including accrued interest and the proceeds from the partial realisation of Oriental Ford, with three investments having increased in value, whilst two have declined in value.

Public Equity

As at 30 June 2010, the Fund’s Public Equity portfolio includes 23 listed companies, accounting for 16.8% of NAV, three over-the-counter companies, accounting for 0.9% of NAV and one corporate bond, accounting for 1.4% of NAV. During the period the Fund increased its allocation to Public Equity with a net investment, defined as purchases less sales, of US$ 11.5m. As previously noted, at the current trading range, the Investment Manager views that Vietnamese equities are fair in terms of valuation.

Share Repurchase Programme

Pursuant to shareholders’ approval at an Extraordinary General Meeting held on 20 May 2010, the Company carried out a share repurchase programme during June 2010 whereby 3,811,342 non-redeemable participating shares (“shares”) were repurchased and cancelled, reducing the number of shares to 24,456,323 as at 30 June 2010.

The total consideration, including brokerage fees, for the 3,811,342 shares was US$ 18.4m (an average price per share inclusive of brokerage fee of US$4.832). The difference between the total consideration (US$ 18.4m) and the aggregate net asset value of the 3,811,342 shares acquired, based on the last published net asset value per share of the Fund (US$ 6.741 per share as at 31 May 2010), of US$ 25.7m was US$ 7.3m.

Prudential Asset Management (Singapore) Limited

24 August 2010

Any opinion or estimate in this report is subject to change without notice. Any projection or forecast on the economy, securities markets or economic trends of the markets, is not necessarily indicative of the future or likely performance of the Fund. Note that the securities mentioned herein are included for illustration purposes only. It should not be construed as a recommendation to purchase or sell any particular securities. There is no guarantee that any securities discussed herein will remain in the portfolio of the Fund at the time you received this material or that securities sold have not been repurchased

12 Including accrued interest

Investment Manager’s report (continued)


Financial statements for the six months ended 30 June 2010

7

Vietnam Segregated Portfolio 30 June 31 December

Note 2010 2009

$’000 $’000

Assets

Cash and cash equivalents 8 10,361 36,752 Financial assets designated at fair value through profit or loss upon initial recognition:

- Debt investments 33,901 29,691 - Equity investments 127,690 116,771 Balances due from brokers - 277 Interest, dividend and other receivables 4,907 3,855 ─────── ───────

Total assets 176,859 187,346

------------ ------------ Liabilities

Balances due to brokers 379 - Other payables and accrued expenses 943 738 Deferred tax liabilities 10 6,483 6,707 ─────── ───────

Total liabilities 7,805 7,445 ------------ ------------

Total liabilities excluding net assets

attributable to holders of non-redeemable

participating shares

7,805 7,445 ======= ======= Net assets attributable to holders of non-

redeemable participating shares

169,054 179,901

======= =======

Net asset value per share in US$ based

on 24,456,323 (31 December 2009:

28,267,665) shares outstanding

6.91 6.36 ======= ======= Approved and authorised for issue by the Board of Directors on 24 August 2010

_____________________ _____________________

Director Director The notes on pages 11 to 20 form part of these financial statements.

Condensed interim statement of financial position at 30 June 2010 (Expressed in United States dollars)



8

Vietnam Segregated Portfolio Six months Six months

ended 30 June ended 30 June

Note 2010 2009

$’000 $’000

Interest income 6 1,992 2,548 Dividend income 6 4,049 459 Net gain on investments 7 3,739 23,915 Net foreign exchange loss (301) (327) Other investment income 81 -

─────── ───────

Net investment income 9,560 26,595 ------------ ------------ Management fee 4 1,880 1,710 Custody and administration fees 5 86 78 Professional fees 431 148 Recovery of prior years’ professional fees (358) - Other operating expenses 177 62

─────── ───────

Operating expenses 2,216 1,998 ------------ ------------ Profit before tax 7,344 24,597 Tax credit 10 224 -

─────── ───────

Change in net assets attributable to

holders of non-redeemable

participating shares

7,568 24,597 ======= =======

The notes on pages 11 to 20 form part of these financial statements.

Condensed interim statement of comprehensive income for the period ended 30 June 2010 (Expressed in United States dollars)



9



2010 2009

Note $’000 $’000

Balance at 1 January 179,901 160,560 Repurchase and cancellation of 3,811,342 (30 June 2009: Nil) of own non-redeemable participating shares 9 (18,415) -

Change in net assets attributable to holders of non-redeemable participating shares for the period 7,568 24,597

─────── ───────

Balance at 30 June 169,054 185,157 ======= =======


Condensed interim statement of changes in net assets attributable to holders of non-redeemable participating shares for the period ended 30 June 2010 (Expressed in United States dollars)



10



Note 2010 2009

$’000 $’000

Operating activities Dividends received 4,052 418 Interest received 69 367 Operating expenses paid (2,369) (2,051) Proceeds from sale of investments 4,043 8,265 Purchase of investments (13,566) (3,533) Other receipts 81 31

─────── ───────

Cash flows (used in)/from operating

activities

(7,690) 3,497

------------ ------------ Financing activities Repurchase of own non-redeemable participating shares (18,415) -

─────── ───────

Cash flows used in financing activities (18,415) - ------------ ------------ Net (decrease)/increase in cash and

cash equivalents (26,105) 3,497 Cash and cash equivalents at the

beginning of the period 36,752 27,828 Foreign exchange losses on cash and cash equivalents

(286) (327)

─────── ───────

Cash and cash equivalents at the end

of the period 8 10,361 30,998 ======= =======


Condensed interim statement of cash flows for the period ended 30 June 2010 (Expressed in United States dollars)



11

1 General information

PCA International Funds SPC (the "Company") was incorporated with limited liability (registration number: MC-177566) on 17 November 2006 in the Cayman Islands under the provisions of the Companies Law as an exempted segregated portfolio company with limited liability. To date, the Company has established one Sub-Fund - the Vietnam Segregated Portfolio (the “Fund"). Accordingly, the financial statements of the Company only include the Fund.

The Fund aims to generate attractive long-term total returns through dividends and capital gains from a selected portfolio of securities. The Fund invests primarily in the securities of companies which are either incorporated or listed in Vietnam or are located outside of Vietnam but carry on significant operations in Vietnam. The Fund may invest up to 10% of its Net Asset Value in companies incorporated in, or having significant operations in, Cambodia.

The Fund is a closed ended fund with a tenure of seven years from the date of allotment of the non-redeemable participating shares (22 December 2006). At the end of seven years, the Board of Directors may propose an ordinary resolution to the participating shareholders to extend the life of the Fund.

As at 30 June 2010, the Company had no employees (31 December 2009: nil). The investment activities of the Fund are managed by Prudential Asset Management (Singapore) Limited ("PAMS") (the "Investment Manager") and the administration of the Fund is delegated to HSBC Trustee (Cayman) Limited (the “Administrator”). The Company has appointed HSBC Institutional Trust Services (Asia) Limited as the Fund’s Custodian (the “Custodian”). The registered office of the Company is 3rd Floor, Queensgate House 113 South Church Street, PO Box 10240, Grand Cayman, KY1-1002, Cayman Islands.

The interim financial statements were authorised for issue by the Board of Directors on 24 August 2010.

2 Statement of compliance

These condensed interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 Interim Financial Reporting. They do not include all of the information required for full annual financial statements and should be read in conjunction with the financial statements as at and for the year ended 31 December 2009, which have been prepared in accordance with IFRSs.

The interim financial statements have not been audited or reviewed by the Company’s auditors.

3 Significant accounting policies

The accounting policies applied in these condensed interim financial statements are the same as those applied by the Company in its financial statements as at and for the year ended 31 December 2009.

Notes to the condensed interim financial statements (Expressed in United States dollars, rounded to the nearest thousand)



12

4 Management and performance fees

Prudential Asset Management (Singapore) Limited, the Investment Manager, is entitled to a monthly management fee payable in arrears at an annual rate of 2% of the net asset value of the Fund and also a performance fee. The performance fee paid by the Fund to the Investment Manager is equal to 20% of any increase in the Fund’s net asset value each year, above a compounded hurdle rate of 8% per annum. The performance fee is payable in arrears in respect of each performance period.

For the period ended 30 June 2010, the management fee is $1,880,000 (30 June 2009: $1,710,000) of which $283,000 (31 December 2009: $330,000) is outstanding at 30 June 2010. The performance fee payable for the period ended 30 June 2010 is nil (30 June 2009: nil).

5 Custody and administration fees

The Custodian and Administrator are entitled to receive an aggregate fee of 0.09% per annum of the net asset value of the Fund, payable monthly in arrears. For the period ended 30 June 2010, the custody and administration fee is $86,000 (30 June 2009: $78,000), of which $13,000 (31 December 2009: $15,000) is outstanding at 30 June 2010.

6 Interest and dividend income

The following table details the interest income earned by the Fund during the period: Six months Six months ended 30 June ended 30 June 2010 2009 $’000 $’000 Interest income from debt investments designated at fair value through profit and loss 1,992 2,548

======= =======

The following table details the dividend income earned by the Fund during the period:

Six months Six months ended 30 June ended 30 June 2010 2009 $’000 $’000 Dividend income from equity securities designated at fair value through profit and loss 4,049 459

======= =======



13

7 Gains and losses from investments

The following table details the gains and losses from financial assets designated at fair value

through profit or loss upon initial recognition for the period:

Six months Six months ended 30 June ended 30 June 2010 2009 $’000 $’000 Net gain on debt investments 4,028 1,009

Net (loss) / gain on equity investments (289) 22,906 ─────── ───────

Net gain on debt and equity investments 3,739 23,915

======= =======

Realised gains 279 225

Unrealised gains 15,282 49,769 ─────── ───────

Total gains on investments 15,561 49,994 ======= =======

Realised losses 306 21,725 Unrealised losses 11,516 4,354

─────── ───────

Total losses on investments 11,822 26,079 ======= =======

Gains and losses presented above exclude interest income and dividend income.

8 Cash and cash equivalents

30 June 31 December 2010 2009 $’000 $’000 Current deposits 10,361 36,752 ======= =======



14

9 Non-redeemable participating shares and management shares

Capital management policy

The Company strives to invest the subscriptions of non-redeemable participating shares in investments that meet the Fund’s investment objectives while maintaining sufficient liquidity for its operating expenses requirement through short-term fixed deposits and debt.

The Company and the Fund do not have externally imposed capital requirements.

The analysis of the movements in number of shares and net assets attributable to holders of non-redeemable participating shares during the period is as follows: Number of shares

30 June 31 December 30 June

31

December 2010 2009 2010 2009 $’000 $’000 Authorised share capital: Management shares of $1 each 100 100 - - Non-redeemable participating shares of $0.0001 each 499,000,000 499,000,000 50 50 499,000,100 499,000,100 50 50 ========= ========= ======= ======= Issued and fully paid: Management shares 2 2 - - ========= ========= ======= ======= Non-redeemable participating shares balance at 1 January 28,267,665 28,267,665 282,677 282,677 Repurchase and cancellation of non-redeemable participating shares during the period (3,811,342) - (38,114) - Non-redeemable participating shares balance at 30 June / 31 December 24,456,323 28,267,665 244,563 282,677 ========= ========= ======= =======

The initial offering of non-redeemable participating shares was at a price of $10 each.



15

9 Non-redeemable participating shares and management shares (continued)

Holders of participating shares carry no right to receive notice of, attend or vote as a management shareholder of the Company at any general meeting of the Company, but may vote at a separate class meeting convened in accordance with the Company’s Articles of Association. The holders are entitled to receive all dividends declared and paid by the Company in respect of the Fund. Upon winding up, the holders are entitled to participate in the surplus assets (after the payment of all creditors and subject to the provisions of the applicable laws and the Company’s Articles of Association) of the Fund.

The management shares carry all general shareholder voting rights but carry no right to dividends and, on a winding-up, rank only for the return of the capital paid up thereon. These shares are held by Prudential Corporation Holdings Limited.

Pursuant to shareholders’ approval at an Extraordinary General Meeting held on 20 May 2010, the Company carried out a share repurchase programme in June 2010 whereby 3,811,342 of the Company’s non-redeemable participating shares were repurchased in the open market for a total consideration of $18,415,000 inclusive of brokerage paid (31 December 2009: nil). Following purchase, these shares were cancelled. The difference between the total consideration ($ 18,415,000) and aggregate net asset value of the 3,811,342 shares acquired, based on the last published net asset value per share of the Fund ($ 6.741 per share as at 31 May 2010), of $ 25,692,000 was $ 7,277,000.

10 Tax expense

Under the current system of taxation in the Cayman Islands, the Company is exempted from paying taxes on income, profits or capital gains. The Company has received an undertaking from the Governor in Cabinet of the Cayman Islands government exempting it from tax for a period of 20 years from 29 November 2006.

Based on current interpretation of Vietnam’s corporate tax laws and regulations, it is understood that the Company will be liable to tax of 25% (2009: 25%) on capital gains realized on the sale of unquoted equity investments in Vietnamese onshore companies. A deferred tax liability of $6,483,000 (31 December 2009: $6,707,000) is recognised for this potential future tax liability.

11 Financial risk management

The Fund’s financial risk management objectives and policies during the six months ended 30 June 2010 are consistent with that disclosed in the financial statements as at and for the year ended 31 December 2009.



16

12 Related parties

Investment Manager

The Company appointed Prudential Asset Management (Singapore) Limited, an investment management company incorporated in Singapore, to implement the Fund’s investment strategy as specified in the prospectus. Under the Investment Management Agreement, the Investment Manager receives a management fee monthly in arrears at an annual rate of 2% of the net assets attributable to holders of non-redeemable participating shares on each valuation day as defined in the prospectus. Included in other payables and accrued expenses at 30 June 2010 are investment fees accrued of $283,000 (31 December 2009: $330,000). The Fund paid the management fee to the Investment Manager as disclosed in the condensed interim statement of comprehensive income and note 4.

Directors' fees and expenses

During the period, the Company reimbursed a director $49,000 (30 June 2009: Nil) for business-related travel and hotel expenses in connection with board and committee meetings, shareholder relations and other board-related activities. The expenses were incurred in the current year and second half of the prior year.

No directors' fees were paid during the period (30 June 2009: Nil).

13 Fair value information

Many of the Fund’s financial instruments are carried at fair value on the statement of financial position. Usually the fair value of the financial instruments can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including amounts due from/to brokers, accounts payable and accrued expenses, the carrying amounts approximate fair value due to the immediate or short-term nature of these financial instruments.

The carrying amounts of all the Fund’s financial assets and financial liabilities at the statement of financial position date approximated their fair values.

The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

• Level 1: quoted market prices (unadjusted) in active markets for identical assets and liabilities

• Level 2: valuation techniques based on observable inputs, either directly (i.e., as prices) or indirectly (i.e., derived from prices). This category includes instruments valued using broker quotes in markets that are considered less than active or other valuation techniques where all significant inputs are directly or indirectly observable from market data.



17

13 Fair value information (continued)

• Level 3: valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation.

For two (31 December 2009: three) unlisted equity investments in companies which engage in property development in Vietnam, their fair value as at 30 June 2010 totaling $2,874,000 (31 December 2009: $4,563,000) was determined by reference to the net assets of the investee companies based on their audited financial statements and unaudited management financial information prepared on a historical cost basis. The total cost and fair value of these investments as at 30 June 2010 was $4,728,000 (31 December 2009: $10,925,000) and $2,874,000 (31 December 2009: $4,563,000), respectively. Management considers the value derived from this method approximates the fair value as at 30 June 2010.

The tables below analyses financial instruments carried at fair value by the level in the fair value hierarchy into which the fair value measurement is categorised.

As at 30 June 2010 Level 1 Level 2 Level 3 Total $’000 $’000 $’000 $’000 Financial assets designated at fair value through profit or loss 30,701 1,518 129,372 161,591 ======= ======= ======= ======= As at 31 December 2009

Financial assets designated at fair value through profit or loss 20,240 1,664 124,558 146,462 ======= ======= ======= =======

The following shows the movement in Level 3 fair value measurements for the period ended 30 June 2010. Six months ended

30 June 2010 $’000

30 June 2009 $’000

Opening balance 124,558 95,914

Gains included in the profit or loss for the year 4,933 18,685

Purchases 1,212 482

Sales (1,331) (66)

─────── ───────

Closing balance 129,372 115,015

======= =======



18

14 Accounting estimates and judgements

Key sources of estimation uncertainty

Fair values of financial instruments

As indicated in note 13 many of the Fund’s financial instruments are measured at fair value in the statement of financial position and it is usually possible to determine their fair values within a reasonable range of estimates.

For certain of the Fund’s financial instruments, quoted market prices are readily available. However, other financial instruments, for example over-the-counter derivatives or unquoted securities, are fair valued using valuation techniques, including reference to the current fair values of other instruments that are substantially the same (subject to the appropriate adjustments).

Fair value estimates are made at a specific point in time, based on market conditions and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgement (e.g., interest rates, volatility, estimated cash flows etc.) and therefore, cannot be determined with precision.

15 Segment information

The Investment Committee makes the strategic resource allocations on behalf of the Company. The Company has determined the operating segments based on the reports reviewed by the Investment Committee, which are used to make strategic decisions.

The Investment Committee is responsible for the Company’s entire portfolio and considers the business to have a single operating segment. The Investment Committee’s assets allocation decisions are based on a single, integrated investment strategy, and the Company’s performance is evaluated on an overall basis.

The Fund trades in a selected portfolio of investments with the objective of generating attractive long-term total returns.

The internal reporting provided to the Investment Committee for the Fund’s assets, liabilities and performance is prepared on a consistent basis with the measurement and recognition principles of IFRS with the exception of the valuation of financial instruments. For the purpose of segmental reporting, financial instruments are measured in accordance with the method set out in the Fund’s prospectus, this being the last traded price of the securities as at the valuation day. For the purpose of financial reporting, financial instruments are measured in accordance with the principles set out in IAS 39, this being at bid prices for financial assets and ask prices for financial liabilities.

There were no changes in the reportable segments during the period ended 30 June 2010.

The Fund is domiciled in the Cayman Islands. All of the income is from investments in entities incorporated in Vietnam or with significant operations in Vietnam.



19

15 Segment information (continued)

Reconciliations of reportable segment revenues, profit or loss and net assets

Six months ended

30 June 2010 $’000

30 June 2009 $’000

Revenues

Reportable segment revenue 12,941 8,894

Adjustment from last traded prices to bid-market prices (161) (33)

Adjustment for time lag in reflecting quarterly unquoted securities valuation and other adjustments

(3,220)

17,734 Total net investment income 9,560 26,595

======= =======

Six months ended

30 June 2010 $’000

30 June 2009 $’000

Profit or loss

Reportable segment profit 10,394 6,896 Adjustment from last traded prices to bid-market prices (161) (33) Adjustment for time lag in reflecting quarterly unquoted securities valuation and other adjustments (3,516) 17,734 Tax credit 851 -

Change in net assets attributable to holders of non- redeemable participating shares

7,568

24,597

======= =======

As at

30 June 2010 31 December 2009

$’000 $’000

Net assets

Net assets for reportable segment 171,880 194,180 Adjustment from last traded prices to bid-market prices (161) (46) Adjustment for time lag in reflecting quarterly unquoted securities valuation and other adjustments (3,516) (7,526) Tax credit / (expense) 851 (6,707) Net assets 169,054 179,901

======= =======



20

16 Non-adjusting post-balance sheet event

There has been no post balance sheet event affecting the Company since the period end.

17 Cross liability

The assets of the Fund are not exposed to the liabilities of the Company. At 30 June 2010, the Directors are not aware of any such existing or contingent liability relating only to the Company and not the Fund.

18 Soft commission

There were no soft commission arrangements affecting the Company or the Fund during the period ended 30 June 2010.



21

Fair value Percentage of

net assets

$’000 %

Listed equity Basic materials 1,424 0.8% Chemical and oil 3,719 2.2% Construction 8,253 4.9% Consumer, Cyclical 162 0.1% Consumer, Non-cyclical 6,207 3.7% Financial 2,740 1.6% Merchandising 7,415 4.4% Transportation 4,260 2.5% Utilities 162 0.1% Agriculture 509 0.3%

───── ─────

Total listed investments (2009: 11.3%) 34,851 20.6%

--------- ---------

Unlisted debt Construction 18,007 10.7% Consumer, Cyclical 2,000 1.2% Consumer, Non-cyclical 13,854 8.1%

───── ─────

33,861 20.0%

--------- ---------

Unlisted equity Construction 12,659 7.5% Consumer, Cyclical 5,688 3.4% Consumer, Non-cyclical 72,155 42.7% Transportation 2,377 1.4%

───── ─────

92,879 55.0% --------- ---------

Total unlisted investments (2009: 70.1%) 126,740 75.0%

--------- ---------

Total investments (2009: 81.4%) 161,591 95.6%

Other assets net of liabilities (2009: 18.6%) 7,463 4.4%

───── ─────

Total net assets 169,054 100.0%

====== ======

A statement of changes in the composition of the portfolio during the period is available upon request from the Administrator free of charge.

Schedule of investments at 30 June 2010

22

Disclaimer

The Fund is a closed-ended fund which has since been closed for subscription. Although the Non-Redeemable Participating Shares (“Shares”) of the Fund are listed on the Irish Stock Exchange and certain market makers may also indicate prices, the Company does not expect an active secondary market to develop in the said Shares. A prospectus in relation to the Fund is available and a copy of the prospectus may be obtained from the Investment Manager and its distribution partners. Investors should read the prospectus before deciding whether to purchase Shares in the Fund. The value of Shares in the Fund and the income accruing to the Shares, if any, may fall or rise. Past performance of the Fund is not necessarily indicative of the future performance of the Fund. An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. Investors may wish to seek advice from a financial adviser before making a commitment to invest in Shares of the Fund. In the event an investor chooses not to seek advice from a financial adviser, the investor should consider whether the Fund is suitable for him.

Whilst we have taken reasonable care to ensure that the information contained in the Investment Manager’s Report is true and not misleading, we cannot guarantee its accuracy or completeness. Investors should not act on it without independently verifying its contents. Any opinion or estimate contained in this report 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. 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 likely performance of the Fund. Please note that the securities mentioned herein are included for illustration purposes only. It should not be construed as a recommendation to purchase or sell any particular securities. There is no guarantee that any securities discussed herein will remain in the portfolio of the Fund at the time you received this material or that securities sold have not been repurchased.

Prudential Asset Management (Singapore) Limited (“PAMS”) is an indirect subsidiary of Prudential plc of the United Kingdom. Prudential plc and PAMS are not affiliated with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

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