PRUDENTIAL INFLATION PLUS FUND30 NOVEMBER 2014

Annualised performance A Class X Class# B Class# Objective

1 year 13.5% 13.8% 14.4% 10.9%3 years 15.6% 15.8% 16.4% 10.7%5 years 14.0% n/a 14.8% 10.3%7 years 11.3% n/a 12.0% 11.4%10 years 13.5% n/a 14.1% 11.5%Since inception 14.2% 15.6% 14.1% 11.4%

# Inception dates: X Class: 1 July 2011, B Class: 1 July 2002

Risk measures A Class Objective

Monthly volatility (annualised) 5.8% 1.6%Maximum drawdown over any period -8.6% -0.6%% of positive rolling 12 months 94.7% 100.0%Information ratio 1.0 n/aSortino ratio 3.6 n/aSharpe ratio 2.1 n/a

Since inception cumulative performance, distributions reinvested (A Class)

2001

2003

2005

2007

2009

2011

2013

2014

R100

R200

R300

R400

R500

R600

R700Prudential Inflation PlusFundObjective

R10

0 Initial Investmen

t

R602.71

R427.95

Top holdings**

1. Republic of SA Bond 10.50% 211226 (R186) 5.4%2. Republic of SA ILB 2.60% 310328 (R210) 5.3%3. Republic of SA ILB 5.50% 071223 (R197) 4.7%4. Republic of SA ILB 2.25% 310138 (I2038) 3.0%5. PowerShares Senior Loan Portfolio ETF 2.9%6. Republic of SA ILB 2.00% 310125 (I2025) 2.7%7. SPDR S&P 500 ETF 2.6%8. First Eagle Amundi International Fund 2.4%9. Naspers Ltd 2.3%10. Republic of SA ILB 3.45% 071233 (R202) 2.3%

**As at 30 September 2014 (updated quarterly)

Asset allocation

SA Inflation-linked Bonds 22.3%SA Equity 20.7%SA Bonds (ex. Inflation-linked Bonds) 16.4%Foreign Equity 16.2%SA Listed Property 10.7%Foreign Bonds 6.6%SA Cash 4.6%Foreign Cash 2.5%

Fund's monthly asset class returns

Foreign Equity 2.7%SA Bonds (ex. Inflation-linked Bonds) 2.5%SA Listed Property 2.5%SA Inflation-linked Bonds 1.0%SA Cash 0.7%Foreign Bonds 0.0%Foreign Cash -0.1%SA Equity -0.6%

Income distributions Total distributions 12-month yield

(A Class) 30 June 2014 4.37 cpu 2.43%(A Class) 31 December 2013 4.39 cpu 2.28%

(B Class) 30 June 2014 5.55 cpu 3.09%(B Class) 31 December 2013 5.56 cpu 2.94%

If the income earned in the form of dividends and interest exceeds the total expenses, the Fund will make a distribution. (cpu = cents per unit)

Investment options A Class X Class B Class

Minimum lump sum investment R20 000 R20 000 R20 millionMinimum monthly debit order R1 000 pm R1 000 pm n/a

Initial fees (excl. VAT)

Prudential 0.00% 0.00% 0.00%Financial adviser (if applicable) 2.75% (max) 2.75% (max) 0.00%

Annualised management fees (excl. VAT)

Prudential (local assets) 1.25% 1.00% 0.60%Prudential (foreign assets) 1.60%-1.70% 1.35%-1.45% 0.95%-1.05%Financial adviser service fee*(if applicable)

0.50% 0.50% 0.00%

* Included in Prudentials annual management fee above

Total Expense Ratio (incl. VAT)

TER 1.58% 1.32% 0.83%

Sources: Prudential South Africa & Morningstar Prudential Inflation Plus Fund Page 1 of 2

Risk profile:

Fund objective:

The primary objective is to outperform CPI by 5% (before fees) over a rolling 3-year period. The secondary objective is to reduce the risk of capital loss over any rolling 12-month period.

Investor profile:

Individuals looking for a low-to medium-risk multi-asset fund. Individuals and retirees who want to protect their investment from the detrimental effects of inflation over time. The recommended investment horizon is 3 years or longer.

Investment mandate:

The Fund invests in an actively managed, diversified combination of domestic and international assets where the asset allocation is tactically managed. The intended maximum limits are Equity 40%, Listed Property 25%, Offshore 25%, plus additional 5% Africa (excl. SA).The Fund is managed to comply with regulations governing retirement fund investments (Regulation 28).

Fund managers:

Albert Arntz and Michael Moyle

ASISA category:

South African - Multi-Asset - Low Equity

Objective:

CPI+5% p.a. over a rolling 3-year period

Inception date:

1 June 2001

Fund size:

R27 146 374 509

Awards:Raging Bull: 2013

Fund commentaryThe FTSE/JSE All Share (ALSI) gained 0.5% on a total return basis in November 2014. The All Bond Index gained 2.4% and the Inflation-linked Bond Index gained 0.9%. The SA Listed Property Index returned 2.8% for the month. Cash returned 0.5%.

The Rand weakened 0.2% against the US Dollar, but gained 0.2% against the Euro in November 2014.

The MSCI World Index gained 2.1% on a total return basis in US Dollar terms in November 2014.

The Fund realised a total return of 1.1% for the month. The key contributors to performance this month came from the Fund's position in foreign equity and SA bonds (excluding inflation-linked bonds). This brings the one year performance of the Fund to 13.5% (after fees).

The Fund has delivered a return of 14.2% per annum since inception (after fees) while CPI inflation has increased by 5.7% per annum.

Sources: Prudential South Africa & Deutche Securities

An electronic copy of this document is available at www.prudential.co.za

DisclaimerPrudential Portfolio Managers Unit Trusts Ltd (Registration number: 1999/0524/06) is an approved CISCA management company (#29). Assets are managed by Prudential Investment Managers (South Africa) (Pty) Ltd, which is an approved discretionary Financial Services Provider (#45199). Collective Investment Schemes (unit trusts) are generally medium to long-term investments. The value of participatory interest (units) may go down as well as up. Past performance is not necessarily a guide to the future. Unit trust prices are calculated on a net asset value basis, which for money market funds is the total book value of all assets in the portfolio divided by the number of units in issue. Fluctuations or movements in exchange rates may also be the cause of the value of underlying international investments going up or down. Unit trusts are traded at ruling prices. Commissions and incentives may be paid and if so, would be included in the overall costs. Different classes of units apply to the Prudential Collective Investment Scheme Funds and are subject to different fees and charges. A detailed schedule of fees and charges and maximum commissions is available on request from the company. Forward pricing is used. All of the unit trusts may be capped at any time in order for them to be managed in accordance with their mandates. Performance figures are sourced from Morningstar and are based on lump sum investments using NAV prices with gross income reinvested. Purchase and repurchase requests must be received by the Manager by 13h30 (11h30 for Money Market and 10h30 for Dividend Income Funds) SA time each business day. All online purchase and repurchase transactions must be received by the Manager by 10h30 (for all Funds) SA time each business day. General market performance data may have been provided for illustrative and explanatory purposes. This information is not intended to constitute the basis for any specific investment decision. Investors are advised to familiarize themselves with the unique risks pertaining to their investment choices and should seek the advice of a properly qualified financial consultant or adviser before investing.

PRUDENTIAL INFLATION PLUS FUND30 NOVEMBER 2014

Glossary

12-month yield A measure of the Fund's income distributions as a percentage of the Fund's net asset value (NAV). This is calculated by summing the income distributions over a rolling 12-month period, then dividing by the sum of the NAV at the end of the period and any capital gains distributed over the same period.

Cumulative performance graph

This illustrates how an initial investment of R100 or N$100 (for example) placed into the Fund would change over time.

Fund's monthly asset class returns

The percentage return that each asset class the Fund is invested in, has contributed to the overall return of the Fund.

Income distribution The dividend income and/or interest income that is generated by the underlying Fund investments and that is periodically declared and distributed to investors in the Fund after all annual service fees.

Information ratio Measures the Funds active return (Fund return in excess of the benchmark) divided by the amount of risk that the manager takes relative to the benchmark. The higher the information ratio, the higher the active return of the Fund, given the amount of risk taken and the more consistent the manager. This is calculated over a 3-year period.

Intended maximum limits This indicates the Funds intended maximum exposure to an asset class. These limits may be reviewed subject to the Funds Supplemental Deed and/or Regulation 28 for those Funds managed in accordance with Regulation 28 of the Pension Funds Act.

Maximum drawdown over any period

The largest drop in the Funds cumulative total return from peak to trough over any period.

Monthly volatility (annualised)

Also known as standard deviation. This measures the amount of variation or difference in the monthly returns on an investment. The larger the annualised monthly volatility, the more the monthly returns are likely to vary from the average monthly return (i.e. the more volatile the investment).

Percentage of positive rolling 12 months

The percentage of months, since inception, that the Fund has shown a positive return over a rolling 12-month period.

Regulation 28 The South African retirement fund industry is governed by the Pension Funds Act, No 24 of 1956. Regulation 28 of the Pension Funds Act prescribes the maximum limits in asset classes that an approved retirement fund may invest in.

Sharpe ratio The Sharpe ratio is used to measure how well the return of an asset compensates the investor for the risk taken. The higher the Sharpe ratio the better the Funds historical risk-adjusted performance has been. This is calculated by taking the difference between the Funds annualised return and the risk-free (cash) rate, divided by the standard deviation of the Funds returns. This is calculated over a 3-year period.

Sortino ratio This is calculated by taking difference between the Funds annualised return and the risk-free (cash) rate, divided by the downside deviation of the Funds returns i.e. the bad volatility. A high Sortino ratio indicates a low risk of large losses occurring in the Fund. This is calculated over a 3-year period.

Total Expense Ratio (TER) This shows the charges, levies and fees relating to the management of the portfolio and is expressed as a percentage of the average net asset value of the portfolio, calculated for the year to the end of the most recent completed quarter. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER cannot be regarded as an indication of future TERs.

Unit class Prudentials Funds are offered in different unit classes to allow different types of investors (individuals and institutions) to invest in the same fund. Different investment minimums and fees apply to different unit classes.A Class: for individuals only.B Class: retirement funds and other large institutional investors only.D Class: retirement funds and other large institutional investors only.X Class: the special fee class that was made available to investors that were invested in the Dividend Income Feeder Fund on the date that the Fund was closed on 1 April 2012 .

Prudential Inflation Plus Fund Page 2 of 2

How to invest

Call us at 0860 105 775 or visit our website at www.prudential.co.za. Application forms and all documentation required by FICA must be faxed to +27 11 263 61 43, e-mailed to instructionsa@myprudential.co.za or posted to PO Box 23167, Claremont, 7735. Cheques must be made payable to Prudential Inflation Plus Fund and deposited into the following bank account: Standard Bank, Claremont, Account number: 072508434, Branch code: 025109.