THE FACT SHEET. Assets Under Management Rs. 22, Crore (As on January 31, 2006)

Transcription

1 THE FACT SHEET Assets Under Management Rs. 22, Crore (As on January 31, 2006)

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3 The Market O v e r v i e w esh Shah Chief Investment Officer Equity Market Snapshot Factors Fundamentals India's industrial growth in November slowed down to 6.9% compared to 7.7% a year earlier and 9.1% in October. Poor performance of the mining sector due to coal shortage continued to drag industrial growth even though manufacturing and electricity sector growth remained steady compared to previous year levels. The infrastructure output index for December was up 4.7% vs. 4.8% a year ago, with cement and crude refining sectors being the key drivers for this growth. December was a record month for the Indian cement industry with monthly dispatches reaching an all time high of 12.57mt. Trade deficit for December narrowed to US$ 2.7bn. after being continuously above the US$3bn mark for past several months. The deficit narrowed primarily due to a bounce back in exports, which rose 16.2% following an unexpected 11% contraction in November. Quick estimates of GDP growth for were revised to 7.5% from the advance estimates of 6.9% due to change in base year from to The economy continues to be on a firm footing and similar growth rate can be expected for the fiscal year as well. Technicals Investments by Jan 06 Dec05 Valuation Ratios Jan 06 Dec05 Institutions (Rs. Crs.) FIIs (Net Purchases / Sales) P/E ratio- Sensex MFs (Net Purchases / Sales) P/E ratio- Nifty Avg Daily Open Interest Price/Book Value Ratio-Sensex (Rs. Crs.) Price/Book Value Ratio-Nifty Index Futures Dividend Yield-Sensex Stock Futures Dividend Yield-Nifty Index Options Stock Options Sectoral Indice Jan 06 Dec05 Performance Total (% Change) (% Change) Avg Daily Volumes (Rs. Crs.) Jan 06 Dec05 CASH Segment BSE NSE Total Derivative Segment NSE Avg Advance Decline Ratio Jan 06 Dec05 BSE Ratio NSE Ratio BSE Metals BSE PSU Bankex BSE Teck Index BSE Healthcare BSE Auto BSE Oil & Gas BSE Capital Goods BSE FMCG BSE Consumer Durables Market Sentiments Market mood was broadly positive with the Nifty gaining 5.8% on the back of good flows from FII's who continued their foray into the Indian markets with renewed vigor as they brought in fresh allocations for the new year. Mutual funds however remained net sellers as they booked profits and sold to meet redemption requirements. Third quarter results overall were in line with expectations and did not show any shock/surprises. The net profit of 517 companies was up by 32% even though it was marginally lower than the profit growth in the previous two quarters. With the result season getting over the focus will now shift to budget expectations, which along with foreign flows will determine the market direction. Global Events The New Year begun on a strong note for global equities with most markets giving positive returns. The Brazilian stock market index Bovespa gained almost 15% during the month as foreign investors snapped up assets in search of better returns. The market also rallied on expectations that falling interest rates will bolster the Brazilian economy. US S&P 500 index also returned positive and anecdotal evidence suggests that the performance in January has predicted the year-end direction in all but six since Markets in Asia, Japan (+3.3%), Korea (+1.5%), Thailand (+7.4%), Indonesia (+6%), Hong Kong (+5.9%) went up as foreign investors pumped money into these markets. Oil prices moved up from $60 levels to cross the $68 mark, amidst various negative events, starting with the gas supply dispute between Russia & Ukraine. Thereafter, tensions in the Middle East, possible sanctions against Iran and violence in oil rich Nigeria ensured that prices remained at higher levels despite reports of growing supplies in the US. Outlook Equity markets have run up sharply in the last few months and therefore there is a need for a phase of consolidation. We believe that the markets at current levels are entering into a volatile zone with liquidity and valuations putting pressure from opposite sides. We recommend investors to take a long-term view of the markets and have realistic return expectations. Asset allocation, long-term investment horizon, systematic investment plans are all the mantras which will come handy in future to maintain your finances in good health. Fixed Income Market Snapshot Impact on Interest Rates Factors Short Term Medium Term (1-3 Months) (3-6 Months) Inflation Negative Negative Inflation remained range bound in Jan'06 between %. In its quarterly review, RBI kept inflation projection unchanged at 5%-5.50% but highlighted risks of upward bias to inflation in from pass-through of international crude prices. We expect inflation to inch up in coming months on account of low base effect. Money Supply Positive Neutral Money supply (M3) grew at 15.9% YoY as on Jan 6 as compared to 13.6% in the corresponding period last year. This large expansion in money supply has been driven mainly by the sharp increase in non-food credit. This potential upward bias in monetary aggregates will be a key consideration for the central bank while ensuring appropriate liquidity to sustain the growth momentum. Credit Demand Negative Negative Credit demand grew at 30.4% YoY as on Jan 6 and the credit-deposit ratio as on this date was at 69.95%. Tight liquidity conditions have pushed up short-term rates and thereby forced banks to hike deposit rates. Consequently lending rates are also likely to move up to avoid pressure on margins for banks. Government Borrowings Neutral Negative The govt. continued to go ahead with its borrowing program despite the tight liquidity conditions. Apart from the Rs.10,000cr. govt. security auction, the RBI also conducted an on tap sale and a price-yield based auction of State loans. SLR demand of banks and insurance company buying will ensure future auctions also go through smoothly but will worsen the already tight liquidity conditions and put pressure on short-term rates. Foreign Exchange Market Neutral Neutral The rupee appreciated sharply against the dollar moving from Rs /$ to Rs /$ during the beginning of the month as minutes of the Fed Reserve meeting released on Jan 3 indicated that the number of future rate hikes would not be large. Improvement in trade deficit numbers and lack of RBI intervention in the forex market also supported the rupee appreciation. The rupee has appreciated continuously for the last two months and could depreciate marginally based on rate hike announced by the US Fed. RBI Policy Neutral Negative Against market expectation, RBI hiked reverse repo and repo rates by 25bps in its quarterly monetary policy review. GDP growth estimates were revised upward to 7.5%-8% from 7%-7.5%. RBI described the rate hike as a preemptive measure to contain inflation but failed to provide any comfort on the tight liquidity condition prevailing in the market. We expect the market to price a higher interest rate environment from this move of the central bank. Market Sentiment Neutral Neutral Market sentiment remained negative, barring a brief period at the beginning of the month when liquidity had improved because of salary and SDS interest payments. Thereafter, due to tight liquidity and rate hike announcement in the policy review, sentiment turned weak again and bond prices across maturities took a beating. Market mood is unlikely to turn positive till the time liquidity returns to the system. We expect interest rates to remain range bound. Tight liquidity and supply will push yields higher. Year-end valuation consideration in Mar'06 could result in some yield support but commencement of the fresh borrowing program in Apr'06 could again put pressure on yields. The upper end of yields is capped by the support of Insurance companies buying at the long end of the curve. Falling SLR ratios of the banking system as a whole could cap the rise in the G-Sec yield curve in the coming year. In a market like this investors should look at debt funds for returns, which will come majority via coupon income. We recommend investors to consider money market funds for capital protection and other debt funds for portfolio diversification. Any significant investment in debt funds should be considered above the 10-year G Sec yield of 7.50%. 3

4 PruICICI Infrastructure Fund Fund Managers : Sankaran Naren Indicative Investment Horizon: 5 yrs and more Inception date: Fund Size: Rs. 1, crores NAV (As on 31-January-06): Growth option : Rs Dividend option : Rs **Expense Ratio for the month of Jan'06: 1.96% Performance Record *- Cumulative Option % % % *Returns < 1Year : Absolute, > = 1Year : CAGR Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Sector Allocation* Textiles - Synthetic Finance Transportation Minerals/Mining Auto Ancillaries Oil Hotels Gas Telecom Services Ferrous Metals Petroleum Products Power Non-Ferrous Metals Cement Banks Construction Industrial Capital Goods 0.11% 0.15% 1.49% 1.80% 2.00% 2.43% 27.60% Since Inception Prudential ICICI Infrastructure Fund 4.98% 5.38% 5.42% 5.48% 5.62% 7.91% 8.68% 8.99% 8.60% 11.26% 14.14% 4.00% 8.00% 12.00% 16.00% *Pertains to the equity investments only. Quantitative Indicators: Average P/E : Average P/BV : 3.24 Average Dividend Yield : 1.28 Annual Turnover Ratio : 1.81 times 20.81% S&P CNX Nifty turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. Long term investment of funds for capital appreciation derived from the growth and development of the infrastructure sector Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 2, % Kesoram Industries Limited 2, % Banks 11, % State Bank of India 1, % Punjab National Bank 3, % ICICI Bank Limited 3, % Corporation Bank 1, % Bank of Baroda % Oriental Bank of Commerce % Cement 11, % Grasim Industries Limited 6, % OCL India Ltd 2, % Century Textiles & Industries Ltd 2, % Construction 14, % Patel Engineering Ltd 7, % Jai Prakash Industries Limited 5, % Nagarjuna Construction Company 2, % Ferrous Metals 7, % Tata Iron & Steel Co. Ltd 4, % Monnet Ispat 1, % Sesa Goa Limited % Usha Martin Limited % Finance % Reliance Capital Ventures Ltd % Gas 7, % Gas Authority Of India Limited 7, % Hotels 6, % EIH Limited 6, % Industrial Capital Goods 18, % Siemens India Limited 5, % Bharat Heavy Electricals Limited 4, % Larsen & Toubro Limited 4, % Bharat Earth Movers Limited 2, % Crompton Greaves Limited 1, % ABB Ltd % Minerals/Mining 2, % Gujarat Mineral Development Corporation Ltd 1, % Gujarat NRE Coke Ltd % Non-Ferrous Metals 11, % National Aluminium Company Limited 7, % Hindalco Industries Limited 3, % Oil 3, % Oil & Natural Gas Company Ltd 3, % Reliance Natural Resources Ltd % Petroleum Products 7, % Reliance Industries Limited 5, % Madras Refineries Limited 2, % Power 10, % National Thermal Power Corporation Ltd 5, % Gujarat Industries Power Co Limited 2, % PTC India Limited % CESC Limited % Reliance Energy Ventures Ltd % Tata Power Company Limited 2.93 Telecom Services 7, % Bharati Televentures Ltd. 4, % Bharati Televentures Ltd - Futures 1, % Reliance Communications Ventures Ltd 1, % Textiles - Synthetic % Rajasthan Spg. & Wvg. Mills Ltd % Transportation 1, % Containers Corporation of India Ltd 1, % CPs and CDs 1, % Kotak Mahindra Bank Ltd - CD 1, % Term Deposits 2, % ICICI Bank 2, % Cash, Call, CBLO & Reverse Repo % Other Current Assets 3, % Total Net Assets 130, Top Ten Holdings 4

5 PruICICI Discovery Fund Fund Managers : Sankaran Naren Indicative Investment Horizon: 5 yrs and more Inception date: Fund Size: Rs. 1, crores NAV (As on 31-January-06): Growth option: Rs Dividend option: Rs **Expense Ratio for the month of Jan'06: 2.06% Rs invested at inception: Discovery Fund Vs S & P CNX Nifty 23,819 21,819 19,819 17,819 15,819 13,819 11,819 9,819 CAGR Discovery Plan : 71.59%; Benchmark : 53.89% Performance Record *- Growth Option 10 5 Sector Allocation* *Returns < 1Year : Absolute, > 1Year : CAGR Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs July 05 and 31 July 05 was not a Business day. Finance Paper Textiles - Synthetic Telecom Services Power Oil Textiles - Cotton Transportation Software Industrial Products Hardware Textiles - Products Construction Chemicals Ferrous Metals Industrial Capital Goods Petroleum Products Pharmaceuticals Gas Non-Ferrous Metals Fertilizers Auto Cement Banks Auto Ancillaries Consumer Non-Durable 0.13% 0.28% 0.72% 0.86% 0.90% 1.16% *Pertains to the equity investments only. Rs Rs Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan % Pru ICICI Discovery Fund 29.79% S&P CNX Nifty 72.68% 71.59% 45.85% 53.89% Last 6 Months Last 1 Since Inception Pru ICICI Discovery Fund S&P CNX Nifty 1.24% 1.50% 1.56% 2.05% 2.80% 2.98% 3.33% 3.41% 3.74% 3.75% 3.89% 3.95% 5.80% 5.90% 6.60% 7.90% 8.95% 9.72% 11.10% 4.00% 8.00% 12.00% Long term investment of funds for capital appreciation following value investment philosophy Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 6, % Hero Honda Limited 6, % Bajaj Auto Limited % Auto Ancillaries 9, % Motor Industries Co. Limited 3, % Exide Industries Limited 2, % Kesoram Industries Limited 2, % Ucal Fuel Systems Limited % Jay Bharat Maruti Limited % MRF Limited % Banks 9, % State Bank of India 2, % Oriental Bank of Commerce 2, % Punjab National Bank 1, % Karur Vysya Bank 1, % Bank of Baroda % Cement 8, % Century Textiles & Industries Ltd 3, % Grasim Industries Limited 3, % Shree Cement 1, % Orient Paper & Industries Limited % Chemicals 3, % India Glycols Limited 1, % Indian Petrochemicals Corporation Ltd % Gujarat Alkalies & Chemicals Ltd % Construction 3, % Jai Prakash Industries Limited 3, % Consumer Non-Durable 11, % E.I.D. Parry (India) Limited 3, % Pidilite Industries Limited 2, % Nirma Limited 1, % Rajshree Sugars & Chemicals Ltd 1, % Dwarikesh Sugar Industries Ltd % Balrampur Chini Mills Ltd % Triveni Engeneering & Industries Ltd % Marico Industries Limited % Jindal Photo Films Limited % SPL Industries Ltd % Ferrous Metals 3, % Tata Iron & Steel Co. Ltd 2, % Sesa Goa Limited % Steel Authority of India Ltd % Fertilizers 6, % Gujarat State Fert & Chem Limited 3, % Indo Gulf Fertilizers Ltd 1, % DCM Shriram Consolidated Limited % Zuari Industries Limited % Finance % Reliance Capital Ventures Ltd % Gas 4, % Gas Authority Of India Limited 4, % Hardware 2, % HCL Infosystems Ltd 2, % Industrial Capital Goods 3, % Kirloskar Oil Engines Limited 1, % Kalpataru Power Transmission Limited 1, % Thermax Limited 1, % Industrial Products 1, % M M Forgings Limited % Finolex Cables Limited % Jindal Poly Film Ltd % Non-Ferrous Metals 5, % National Aluminium Company Limited 4, % Hindalco Industries Limited 1, % Nav Bharat Ferro Alloys % Oil 1, % Oil & Natural Gas Company Ltd 1, % Reliance Natural Resources Ltd % Paper % Seshashayee Paper & Boards Limited % Petroleum Products 3, % Reliance Industries Limited 3, % Pharmaceuticals 4, % Cadila Healthcare Limited 3, % FDC Limited % Power % Gujarat Industries Power Co Limited % Reliance Energy Ventures Ltd % Software 1, % Mastek Ltd % Subex Systems Limited % IGate Global Solutions Ltd % Telecom Services % Reliance Communications Ventures Ltd % Textiles - Cotton 1, % Mahavir Spinning Mills Limited 1, % Vardhaman Spinning and General Mills Limited % Textiles - Products 2, % Raymond Limited 2, % Textiles - Synthetic % Nahar Spinning Mill Ltd % Transportation 1, Containers Corporation of India Ltd 1, CPs and CDs % UCO Bank - CD % HDFC Bank - CD % Term Deposits 1, % ICICI Bank 1, % Cash, Call, CBLO & Reverse Repo % Other Current Assets 2, % Total Net Assets 102, Top Ten Holdings Quantitative Indicators: Average P/E :14.26 Average P/BV : 2.79 Average Dividend Yield : 1.43 Annual Turnover Ratio : 3.12 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. SIP Returns: As on 31 January, 2006 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Feb-05 12, , % Since Inception 16-Aug-04 19, , , % Assume Rs invested every month. The exceptionally high level of returns come from the sharp appreciation in market, in the year 2004 and

6 PruICICI Power Fund Managers : Anil Sarin Indicative Investment Horizon: 5 yrs & more Inception date: Fund Size: Rs crores NAV (As on 31-January-06): Growth option: Rs Dividend option: Rs **Expense Ratio for the month of Jan'06: 2.18% Rs invested at inception: Power Vs S&P CNX Nifty 66,056 56,056 46,056 36,056 26,056 16,056 6,056 CAGR Power : 17.08%; Benchmark : 7.55% Performance Record* - Cumulative Option *Returns < 1Year : Absolute, > = 1Year : CAGR Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs July 05 and 31 July 05 was not a Business day. Sector Allocation* Finance Oil Telecom Services Chemicals Software Transportation Power Industrial Products Auto Ancillaries Textiles - Products Media & Entertainment Pesticides Construction Ferrous Metals Petroleum Products Pharmaceuticals Auto Cement Non-Ferrous Metals Consumer Non-Durable Banks Industrial Capital Goods *Pertains to the equity investments only. Rs Rs Oct-94 Jul-95 Apr-96 Jan-97 Oct-97 Jul-98 Apr-99 Jan-00 Oct-00 Jul-01 Apr-02 Jan-03 Oct-03 Jul-04 Apr-05 Jan % 29.79% Last 6 Months Pru ICICI Power 65.07% 65.80% Last % Pru ICICI Power Last 3 S&P CNX Nifty 42.24% 34.60% 16.94% 17.08% 7.55% Last 5 S&P CNX Nifty Since Inception 0.13% 0.26% 0.90% 1.38% 1.45% 2.21% 2.22% 2.29% 2.42% 2.69% 2.83% 3.05% 3.75% 3.81% 3.95% 4.97% 5.54% 7.41% 8.60% 9.18% 12.01% 13.91% 4.00% 8.00% 12.00% 16.00% Long term investment of funds for capital appreciation in a concentrated multi sector portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 4, % Mahindra & Mahindra Limited 2, % Hero Honda Limited 1, % Tata Motors Ltd % Auto Ancillaries 2, % Amtek Auto Ltd 2, % Banks 10, % State Bank of India 4, % Punjab National Bank 2, % ICICI Bank Limited 2, % Bank of India % Bank of Baroda % Syndicate Bank % Cement 6, % Grasim Industries Limited 2, % Century Textiles & Industries Ltd 2, % Associated Cement Companies Ltd 2, % Chemicals 1, % Indian Petrochemicals Corporation Ltd 1, % Construction 3, % Jai Prakash Industries Limited 3, % Gammon India Ltd % Consumer Non-Durable 8, % Bajaj Hindustan Limited 2, % Triveni Engeneering & Industries Ltd 2, % ITC Limited 1, % Balrampur Chini Mills Ltd % Ferrous Metals 3, % Jindal Steel & Power Company Limited 2, % Tata Iron & Steel Co. Ltd % Usha Martin Limited % Finance % Reliance Capital Ventures Ltd % Industrial Capital Goods 12, % Larsen & Toubro Limited 3, % Bharat Heavy Electricals Limited 2, % Bharat Earth Movers Limited 2, % Thermax Limited 2, % Suzlon Energy Limited % Industrial Products 2, % AIA Engineering 2, % Media & Entertainment 2, % Deccan Chronicle Holdings Ltd 2, % Non-Ferrous Metals 7, % Hindalco Industries Limited 4, % National Aluminium Company Limited 1, % Sterlite Industries (India) Limited 1, % Oil % Oil & Natural Gas Company Ltd % Reliance Natural Resources Ltd % Pesticides 2, % United Phosphorous Limited 2, % Petroleum Products 3, % Reliance Industries Limited 3, % Pharmaceuticals 4, % Cipla Limited 1, % Wyeth Lederle Ltd. 1, % Lupin Limited 1, % Power 1, % PTC India Limited 1, % CESC Limited % Reliance Energy Ventures Ltd % Software 1, % HCL Technologies Limited 1, % Tulip IT Services % Telecom Services % Reliance Communications Ventures Ltd % Textiles - Products 2, % Alok Textile Ltd. 1, % Raymond Limited % Aditya Birla Nuvo Ltd % Nitin Spinners Ltd % Transportation 1, % Containers Corporation of India Ltd 1, % CPs and CDs % HDFC Ltd - CP % ING Vysya Bank - CD % Term Deposits % ICICI Bank % Cash, Call, CBLO & Reverse Repo 1, % Other Current Assets 1, % Total Net Assets 89, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 3.63 Average Dividend Yield : 1.03 Annual Turnover Ratio : 2.72 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. SIP Returns: As on 31 January, 2006 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Feb-05 12, , % 3 Year SIP 28-Feb-03 36, , , % 5 Year SIP 28-Feb-01 60, , , % Since Inception 01-Oct , , , % Assume Rs invested every month. The exceptionally high level of returns come from the sharp appreciation in market, in the year 2003, 2004 and

7 PruICICI Dynamic Plan Fund Managers : Anil Sarin Indicative Investment Horizon: 3 yrs & more Inception date: Fund Size: Rs crores NAV (As on 31-January-06): Cumulative option : Rs Dividend option : Rs **Expense Ratio for the month of Jan'06: 2.16% Rs invested at inception: Dynamic Plan Vs S&P CNX Nifty 49,665 44,665 39,665 34,665 29,665 24,665 19,665 14,665 9,665 CAGR Dynamic Plan: 58.21%; Benchmark : 42.33% Performance Record *- Cumulative Option Sector Allocation* Oil Retailing Finance Hotels Telecom Services Chemicals Ferrous Metals Fertilizers Power Gas Hardware Textiles - Products Auto Ancillaries Auto Industrial Products Petroleum Products Construction Media & Entertainment Software Banks Industrial Capital Non-Ferrous Metals Cement Consumer Non-Durable 0.02% 0.08% 0.11% 0.58% 0.73% 0.85% 1.07% 1.27% 1.47% 1.73% 1.86% 1.90% 2.27% 2.54% 3.15% 3.18% 4.58% 7.18% 8.49% 8.62% 8.92% 9.45% *Returns < 1Year : Absolute, > = 1Year : CAGR Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs July 05 and 31 July 05 was not a Business day % 14.25% 4.00% 8.00% 12.00% 16.00% *Pertains to the equity investments only. Rs Rs Oct-02 Dec-02 Feb-03 Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec % 29.79% Pru ICICI Dynamic Plan 75.15% 45.85% S&P CNX Nifty 60.19% 58.21% 42.24% 42.33% Last 6 Months Last 1 Last 3 Since Inception Pru ICICI Dynamic Plan S&P CNX Nifty Medium term investment of funds for capital appreciation by managing cash and equity portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 1, % Mahindra & Mahindra Limited 1, % Auto Ancillaries 1, % Amtek Auto Ltd 1, % Banks 6, % State Bank of India 2, % Punjab National Bank 1, % Bank of India % ICICI Bank Limited % Bank of Baroda % Cement 9, % Grasim Industries Limited 2, % Century Textiles & Industries Ltd 2, % Associated Cement Companies Ltd 2, % Hyderabad Industries Ltd 1, % Orient Paper & Industries Limited % Shree Cement % Chemicals % Navin Flourine International Ltd % Construction 3, % IVRCL Infrastructure & Projects Ltd 1, % Jai Prakash Industries Limited 1, % Consumer Non-Durable 10, % E.I.D. Parry (India) Limited 2, % Bajaj Hindustan Limited 2, % Tata Tea Limited 1, % McDowell & Company Limited 1, % Triveni Engeneering & Industries Ltd % Mawana Sugars Ltd % ITC Limited % Jindal Photo Films Limited % Ferrous Metals % Tata Iron & Steel Co. Ltd % Fertilizers % Coromandel Fertilisers Ltd % Finance % Reliance Capital Ventures Ltd % Gas 1, % Gujarat Gas Company Limited 1, % Hardware 1, % HCL Infosystems Ltd 1, % Hotels % Viceroy Hotels Ltd % Industrial Capital Goods 6, % Larsen & Toubro Limited 2, % Kalpataru Power Transmission Limited 1, % Texmaco Ltd 1, % Bharat Earth Movers Limited 1, % Industrial Products 2, % AIA Engineering 1, % Jain Irrigation Systems Limited % Media & Entertainment 5, % Deccan Chronicle Holdings Ltd 5, % Non-Ferrous Metals 7, % Hindalco Industries Limited 2, % Sterlite Industries (India) Limited 2, % National Aluminium Company Limited 1, % Oil % Reliance Natural Resources Ltd % Petroleum Products 2, % Reliance Industries Limited 2, % Power 1, % Reliance Energy Ltd % Reliance Energy Ventures Ltd % Retailing % Pantaloon Retail (India) Ltd % Software 6, % Subex Systems Limited 3, % HCL Technologies Limited 1, % Mastek Ltd 1, % Wipro Limited - Futures % Satyam Computer Services Limited % Hexaware Technologies Ltd % Telecom Services % Reliance Communications Ventures Ltd % Textiles - Products 1, % Alok Textile Ltd. 1, % Nitin Spinners Ltd % CPs and CDs % HDFC Bank - CD % ING Vysya Bank - CD % Term Deposits % ICICI Bank % Cash, Call, CBLO & Reverse Repo % Other Current Assets % Total Net Assets 75, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 3.58 Average Dividend Yield : 0.93 Annual Turnover Ratio : 3.16 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. SIP Returns: As on 31 January, 2006 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Feb-05 12, , % 3 Year SIP 28-Feb-03 36, , , % Since Inception 31-Oct-02 40, , , % Assume Rs invested every month. The exceptionally high level of returns come from the sharp appreciation in market, in the year 2003, 2004 and

8 PruICICI Services Industries Fund Fund Managers : Deven Sangoi Indicative Investment Horizon: 5 yrs. & more Inception date: Fund Size: Rs crores NAV (As on 31-January-06): Growth option: Rs Dividend option: Rs **Expense Ratio for the month of Jan'06: 2.18% Performance Record *- Cumulative Option 8.40% 8.20% 8.00% 7.80% 7.60% 7.40% 7.20% 7.00% 6.80% 6.60% 6.40% *Returns >= 1 Year are CAGR, < 1 Year are Absolute. Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs Sector Allocation* Media & Entertainment Consumer Durables Power Hardware Gas Pesticides Hotels Textiles - Products Pharmaceuticals Construction Telecom Services Retailing Auto Ancillaries Industrial Capital Goods Transportation Finance Banks Software 0.33% 1.07% 1.94% 2.08% 2.31% 8.20% 3.05% 3.07% 3.26% Since Inception Pru ICICI Services Industries Fund 3.90% 4.05% 4.88% 5.30% 5.69% 5.73% 6.32% *Pertains to the equity investments only. 7.01% 10.24% S&P CNX Nifty 12.93% 16.44% 5.00% % 2 Long term investment of funds for capital appreciation derived from the growth potential of the service industries sector Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto Ancillaries 3, % Carborandum Universal Ltd 1, % Munjal Auto Industries Ltd. 1, % Automotive Axles Limited % Automobile Corporation Of Goa Ltd % Banks 8, % Punjab National Bank 2, % ICICI Bank Limited 1, % State Bank of India 1, % Syndicate Bank 1, % Kotak Mahindra Bank Limited % Bank of India % Bank of Baroda % Construction 2, % Jai Prakash Industries Limited 2, % Gammon India Ltd % Consumer Durables % Voltas Limited % Finance 6, % Housing Development Finance Corpn Ltd. 3, % India Infoline Limited 1, % Infrastructure Development Finance Corp. 1, % Gas 1, % Gas Authority Of India Limited 1, % Hardware 1, % HCL Infosystems Ltd 1, % Hotels 1, % Indian Hotels Company Limited 1, % Taj Gvk Hotels & Resorts Ltd % Industrial Capital Goods 3, % Larsen & Toubro Limited 2, % Siemens India Limited % Media & Entertainment % New Delhi Television Limited % Pesticides 1, % United Phosphorous Limited 1, % Pharmaceuticals 2, % Sun Pharmaceuticals Limited 1, % Sun Pharmaceuticals Limited - Futures % Nicholas Piramal India Limited % Dishman Pharmaceuticals & Chemicals Ltd % Power 1, % PTC India Limited 1, % Retailing 3, % Pantaloon Retail (India) Ltd 2, % Shopper s Stop Ltd 1, % Software 10, % Infosys Technologies Limited 2, % Satyam Computer Services Limited 1, % Tata Consultancy Services Limited 1, % Hinduja TMT Ltd. 1, % HCL Technologies Limited 1, % Infotech Enterprises Limited % Nucleus Software Exports Ltd % Telecom Services 3, % Bharati Televentures Ltd. 1, % Bharati Televentures Ltd. - Futures % Mahanagar Telephone Nigam Ltd. 1, % Textiles - Products 2, % Gokaldas Exports Ltd 1, % Aditya Birla Nuvo Ltd % Nitin Spinners Ltd % Transportation 4, % Containers Corporation of India Ltd 1, % Jet Airways Limited 1, % Gateway Distriparks Ltd % CPs and CDs 2, % ING Vysya Bank - CD 1, % HDFC Ltd - CP % Term Deposits % ICICI Bank % Cash, Call, CBLO & Reverse Repo % Other Current Assets 1, % Total Net Assets 63, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 4.43 Average Dividend Yield : 1.00 Annual Turnover Ratio : 0.63 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. 8

9 PruICICI Emerging S.T.A.R. Fund Long term investment of funds for capital appreciation on a mid-cap portfolio Company/Issuer Mkt Value (Rs. Lakh) % to NAV Fund Managers : Anil Sarin Auto Ancillaries 2, % Amtek Auto Ltd % Indicative Investment Horizon: 3 & more Automotive Axles Limited % Inception date: Govind Rubber Ltd % Fund Size: Rs crores Munjal Auto Industries Ltd % Banks 2, % NAV (As on 31-January-06): Karur Vysya Bank % Growth option: Rs Bank of India % Dividend option: Rs Bank Syndicate % **Expense Ratio for the month of Jan'06: 2.31% Cement 3, % Ramco Industries Limited 1, % Century Textiles & Industries Ltd 1, % OCL India Ltd % Rs invested at inception: Emerging S.T.A.R Fund Vs S&P CNX Nifty Ltd Orient Paper & Industries Limited % Hyderabad Industries % 23,933 Chemicals % 21,933 Rs Beck India Ltd India Glycols Limited % 0.61% 19,933 Construction 1, % Patel Engineering Ltd 1, % 17,933 Consumer Durables 1, % 15,933 Lloyd Electric & Engineering Ltd % 13,933 Consumer Non-Durable 3, % Rs ,933 Bajaj Hindustan Limited 1, % Mawana Sugars Ltd % 9,933 Simbhaoli Sugar Mills Ltd % Blue Star Limited 1, % McDowell & Company Limited % Triveni Engeneering & Industries Ltd % Pru ICICI Emerging S.T.A.R. Fund NIFTY Junior Index Jindal Photo Films Limited % Rajshree Sugars & Chemicals Ltd % CAGR Emerging S.T.A.R. Fund : 85.32%; Benchmark : 51.42% & Alloys Ltd India Seamless Steels % Ferrous Metals Jindal Saw Ltd. 1, % 1.67% Finance % Performance Record *- Growth Option India Infoline Limited % Hardware % HCL Infosystems Ltd % % % EIH Limited (East India Hotels) 1, % Industrial Capital Goods 5, % 8 Bharat Earth Movers Limited 1, % 7 Kalpataru Power Transmission Limited 1, % % Thermax Limited % % Stone India Limited % % RPG Transmission Ltd % 3 Crompton Greaves Limited % 19.59% Areva T&D India Ltd % 2 Bharti Shipyard limited % 1 Industrial Products 2, % Hotels % Sintex Industries % Last 6 Months Last 1 Since Inception Torrent Cable % Pru ICICI Emerging S.T.A.R. Fund NIFTY Junior Index Shree Ganesh Forgings Limited % AIA Engineering % *Returns < 1Year : Absolute, > 1Year : CAGR NRB Bearings Ltd % Benchmark is Nifty Junior. For computation of returns the allotment NAV has Media & Entertainment 2, % been taken as Rs July 05 and 31 July 05 was not a Business day. Deccan Chronicle Holdings Ltd 2, % Non-Ferrous Metals % Hindustan Zinc Limited % Pharmaceuticals % Sector Allocation* Vivimed Labs Ltd % Avon Organics Ltd % Software 5, % Textiles - Cotton 0.11% Subex Systems Limited 2, % Finance 0.85% Prithvi Information Solutions ltd 1, % Telecom Services 0.87% Mastek Ltd % Textiles - Synthetic 1.24% Saksoft Ltd % Hardware 1.56% Visual Soft (India) Ltd % Pharmaceuticals 1.70% Tulip IT Services % Chemicals 1.81% Telecom Services % Non-Ferrous Metals 2.16% Aksh Optifibre Limited % Consumer Durables 2.42% Textiles - Cotton % Construction Maral Overseas Limited % 2.47% Textiles - Products 3, % Hotels 2.52% Siyaram Silk Mills Ltd 1, % Ferrous Metals 3.16% Alps Industries Limited % Industrial Products 4.50% Alok Textile Ltd % Banks 4.94% Nitin Spinners Ltd % Auto Ancillaries 5.32% Textiles - Synthetic % Media & Entertainment 5.41% Sarla Polyester Ltd % Textiles - Products 7.65% CPs and CDs 4, % Cement 8.17% ING Vysya Bank - CD 1, % Consumer Non-Durable 8.47% Kotak Mahindra Bank Ltd - CD % Software 11.35% HDFC Ltd - CP % Industrial Capital Goods 11.89% Jammu & Kashmir Bank Ltd - CD % 4.00% 8.00% 12.00% 16.00% Term Deposits ICICI Bank % 0.32% *Pertains to the equity investments only. NSE Index Futures % Cash, Call, CBLO & Reverse Repo % Other Current Assets % Quantitative Indicators: Total Net Assets 46, Average P/E : Top Ten Holdings Average P/BV : 3.53 SIP Returns: As on 31 January, 2006 Average Dividend Yield : 0.82 Period SIP Start Date Total Amount Total No. Market Value SIP Annual Turnover Ratio : 2.17 times Invested of Units Returns 1 Year SIP 28-Feb-05 12, , % Since Inception 28-Oct-04 17, , , % Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. Assume Rs invested every month. The exceptionally high level of returns come from the sharp appreciation in market, in the year 2004 and

10 PruICICI Growth Plan Fund Managers : Deven Sangoi Indicative Investment Horizon: 5 & more Inception date: Fund Size: Rs crores NAV (As on 31-January-06): Growth option: Rs Dividend option: Rs **Expense Ratio for the month of Jan'06: 2.34% Rs invested at inception: Growth Plan Vs S & P CNX Nifty 78,365 68,365 58,365 48,365 38,365 28,365 18,365 8,365 CAGR Growth Plan : 29.41%; Benchmark : 16.23% Performance Record *- Growth Option *Returns < 1Year : Absolute, > 1Year : CAGR Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs July 05 and 31 July 05 was not a Business day. Sector Allocation* *Pertains to the equity investments only. Rs Rs Jul-98 Dec-98 May-99 Oct-99 Mar-00 Aug-00 Jan-01 Jun-01 Nov-01 Apr-02 Sep-02 Feb-03 Jul-03 Dec-03 May-04 Oct-04 Mar-05 Aug-05 Jan % % 2 1 Last 6 Months Pru ICICI Growth Plan 65.46% Last % 55.35% Last 3 Pru ICICI Growth Plan 42.24% S&P CNX Nifty 25.89% Last 5 S&P CNX Nifty 29.41% 16.94% 16.23% Since Inception Textiles - Products 0.02% Power 0.23% Hardware 1.74% Ferrous Metals 2.03% Pesticides 2.06% Finance 2.19% Gas 2.57% Hotels 2.65% Construction 3.08% Telecom Services 3.16% Petroleum Products 3.36% Oil 3.75% Software 5.14% Auto 6.94% Cement 7.60% Banks 7.64% Consumer Non-Durable 8.12% Pharmaceuticals 9.46% Non-Ferrous Metals 10.70% Industrial Capital Goods 13.20% 4.00% 8.00% 12.00% 16.00% Long term investment of funds for capital appreciation Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto 2, % Mahindra & Mahindra Limited % Hero Honda Limited % Bajaj Auto Limited % Banks 2, % Punjab National Bank % State Bank of India % ICICI Bank Limited % Bank of Baroda % Cement 2, % Grasim Industries Limited 1, % Associated Cement Companies Ltd 1, % OCL India Ltd % Construction % Jai Prakash Industries Limited % Consumer Non-Durable 2, % ITC Limited % Dabur India Limited % Dabur India Limited - Futures % Triveni Engeneering & Industries Ltd % Nirma Limited % Ferrous Metals % Tata Iron & Steel Co. Ltd % Finance % Housing Development Finance Corpn Ltd % Reliance Capital Ventures Ltd % Gas % Gas Authority Of India Limited % Hardware % HCL Infosystems Ltd % Hotels % EIH Limited % Industrial Capital Goods 3, % Bharat Heavy Electricals Limited 1, % Siemens India Limited % Bharat Electronics Limited % Larsen & Toubro Limited % Suzlon Energy Limited % Non-Ferrous Metals 3, % Hindalco Industries Limited 1, % National Aluminium Company Limited % Sterlite Industries (India) Limited % Oil 1, % Oil & Natural Gas Company Ltd 1, % Reliance Natural Resources Ltd % Pesticides % United Phosphorous Limited % Petroleum Products 1, % Reliance Industries Limited 1, % Pharmaceuticals 2, % Cipla Limited % Wyeth Lederle Ltd % Aventis Pharma Ltd % Sun Pharmaceuticals Limited % Power % Reliance Energy Ventures Ltd % Software 1, % Satyam Computer Services Limited % HCL Technologies Limited % Telecom Services % Bharati Televentures Ltd % Reliance Communications Ventures Ltd % Textiles - Products % Nitin Spinners Ltd % CPs and CDs % Jammu & Kashmir Bank Ltd - CD % ING Vysya Bank - CD % Term Deposits % ICICI Bank % Cash, Call, CBLO & Reverse Repo % Other Current Assets % Total Net Assets 29, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 4.27 Average Dividend Yield : 1.22 Annual Turnover Ratio : 2.86 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. SIP Returns: As on 31 January, 2006 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Feb-05 12, , % 3 Year SIP 28-Feb-03 36, , , % 5 Year SIP 28-Feb-01 60, , , % Since Inception 9-Jul-98 92, , , % Assume Rs invested every month. The exceptionally high level of returns come from the sharp appreciation in market, in the year 2003, 2004 and

11 PruICICI Tax Plan Fund Managers : Sankaran Naren Indicative Investment Horizon: 3 yrs & more Inception date: Fund Size: Rs crores NAV (As on 31-January-06): Growth option: Rs Dividend option: Rs **Expense Ratio for the month of Jan'06: 2.36% Performance Record *- Growth Option *Returns < 1Year : Absolute, > = 1Year : CAGR Benchmark is S&P CNX Nifty. For computation of returns the allotment NAV has been taken as Rs July 05 and 31 July 05 was not a Business day. Sector Allocation* Finance 0.08% Ferrous Metals 0.21% Power 0.45% Oil 0.46% Telecom Services 0.53% Minerals/Mining 0.86% Auto 1.34% Hardware 1.77% Hotels 2.00% Petroleum Products 2.33% Banks 3.17% Textiles - Products 3.33% Textiles - Synthetic 3.41% Software 3.49% Textiles - Cotton 4.04% Industrial Capital Goods 4.16% Non-Ferrous Metals 4.55% Industrial Products 4.95% Cement 5.65% Chemicals 6.04% Consumer Non-Durable 8.29% Fertilizers 8.33% Auto Ancillaries Pharmaceuticals 12.42% 13.57% 4.00% 8.00% 12.00% 16.00% *Pertains to the equity investments only. Rs invested at inception: Tax Plan Vs S&P CNX Nifty 86,301 76,301 66,301 56,301 46,301 36,301 26,301 16,301 6,301 CAGR Tax Plan: 36.97%; Benchmark : 13.23% Rs Rs Aug-99 Dec-99 Apr-00 Aug-00 Dec-00 Apr-01 Aug-01 Dec-01 Apr-02 Aug-02 Dec-02 Apr-03 Aug-03 Dec-03 Apr-04 Aug-04 Dec-04 Apr-05 Aug-05 Dec % 29.79% Last 6 Months Pru ICICI Tax Plan 73.10% Last % Pru ICICI Tax Plan 83.96% Last 3 S&P CNX Nifty 42.24% 42.30% 36.97% Last 5 S&P CNX Nifty 16.94% 13.23% Since Inception Medium term investment of funds with tax benefits for capital appreciation Company/Issuer Mkt Value (Rs. Lakh) % to NAV Auto % Hero Honda Limited % Auto Ancillaries 3, % Sundaram Clayton Limited % Exide Industries Limited % Sundaram Brake Linings Ltd % Kesoram Industries Limited % Rane Madras Limited % Rane Holdings Limited % Rane Brake Linings Ltd % Banks % Corporation Bank % Punjab National Bank % Bank of Baroda % Cement 1, % Century Textiles & Industries Ltd % Orient Paper & Industries Limited % Pokarna Ltd % Chemicals 1, % Andhra Sugars Ltd % India Glycols Limited % Navin Flourine International Ltd % Ultramarine & Pigments Ltd % Consumer Non-Durable 2, % Mawana Sugars Ltd % Pidilite Industries Limited % Godrej Consumers % Harrisons Malayalam Limited % United Breweries Ltd % Ferrous Metals % Tayo Rolls Ltd % Fertilizers 2, % DCM Shriram Consolidated Limited % Gujarat State Fert & Chem Limited % Zuari Industries Limited % Finance % Reliance Capital Ventures Ltd % Hardware % HCL Infosystems Ltd % Hotels % Taj Gvk Hotels & Resorts Ltd % Oriental Hotels Limited % Industrial Capital Goods 1, % Aban Lloyd Chiles Offshore Limited % Numeric Power Systems Ltd % Industrial Products 1, % Polyplex Corporation Limited % M M Forgings Limited % Supreme Industries Limited % Esab India Limited % Minerals/Mining % Gujarat Mineral Development Corporation Ltd % Non-Ferrous Metals 1, % National Aluminium Company Limited 1, % Oil % Hindustan Oil Exploration Ltd % Reliance Natural Resources Ltd % Petroleum Products % Reliance Industries Limited % Pharmaceuticals 3, % Sun Pharmaceuticals Limited 1, % FDC Limited 1, % Cadila Healthcare Limited % Fulford India Limited % Power % Gujarat Industries Power Co Limited % Reliance Energy Ventures Ltd % Software % Subex Systems Limited % KPIT Infosystems % Telecom Services % Reliance Communications Ventures Ltd % Textiles - Cotton % Precot Mills Ltd % Maral Overseas Limited % Textiles - Products % Raymond Limited % K. G. Denim Limited % Nitin Spinners Ltd % Textiles - Synthetic % SRF Limited % Cash, Call, CBLO & Reverse Repo % Other Current Assets % Total Net Assets 24, Top Ten Holdings Quantitative Indicators: Average P/E : Average P/BV : 2.59 Average Dividend Yield : 1.26 Annual Turnover Ratio : 2.97 times turnover has been computed as the ratio of the higher value of average purchase and average sales, to the average net assets in the past one year (since inception for schemes that have not completed a year). The figures are not netted for derivative transactions. SIP Returns: As on 31 January, 2006 Period SIP Start Date Total Amount Total No. Market Value SIP Invested of Units Returns 1 Year SIP 28-Feb-05 12, , % 3 Year SIP 28-Feb-03 36, , , % 5 Year SIP 28-Feb-01 60, , , % Since Inception 19-Aug-99 79, , , % Assume Rs invested every month. The exceptionally high level of returns come from the sharp appreciation in market, in the year 2003, 2004 and