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1 Nov 2007

Prudential Launches 4 Sub-Funds In Hong Kong

Prudential Asset Management today announced its entrance into Hong Kong's retail funds market with the launch of its first four retail sub-funds, the M&G Global Basics Fund, M&G Global Leaders Fund, M&G Pan European Fund, and the M&G American Fund.

The launch signals the latest stage of development for Prudential's asset management business in Asia, which has operated in the Hong Kong market since 1994. The Hong Kong launch follows the sub-funds' previous introduction to retail investors in Singapore, Korea, Japan, Taiwan and Malaysia where they attracted significant interest with inflows exceeding $760 million over eight months to 31 August 2007.

"We are launching our retail presence in Hong Kong by introducing some of our core funds to the market." Guy Strapp, Regional Head of Investment Management said about the launch, "These funds have a history of consistent performance and will provide Hong Kong investors with access to global equity markets to help diversify investment portfolios."

Prudential Asset Management (Hong Kong) Limited is a subsidiary of Prudential plc (United Kingdom). Its insurance operations span 12 markets, Mainland China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

With $66 billion in assets under management, it is the only foreign asset manager in the top 5 position in more than one Asian market.

High Turnover Among Hedge Fund Employees

A survey conducted by Job Search Digest revealed insights into the world of hedge fund compensation. Most respondents, the survey shows, have less than two years with their firms, suggesting high employee turnover in the industry.

The high turnover extends to workers on both sides of the Atlantic. Though 50% of survey respondents had more than 10 years of professional experience, more than 60% of respondents reported being with their current firm for two years or less. This short tenure is reflected in a fraction of the professional sharing in the equity pie.

"The survey raises an interesting question," says David Kochanek, president of Job Search Digest, "Are the players unhappy because intelligent, well-educated hard charging 'Type A' people are never satisfied? Or, does the hedge fund industry have a problem."

With the very top hedge fund managers earning hundreds of millions of dollars, even those making a million a year wonder what they could be making if they jump to another firm." Kochanek added.

Production-based bonuses are an integral part of employees' compensation, the survey found, and range from 38% of base salary to more than 400% for top producers. The survey found the further you move up in the organization, the bigger that bonus percentage becomes.

When it comes to educational requirements, a bachelor's degree is the minimum for jobs in the field, but an advanced degree or master's in business administration isn't a requirement for many positions, the survey found. "Although MBA¹s are earning more on average, hedge fund players can be successful in the firm without an MBA or other advanced degree," said Kochanek.

The 2007 Hedge Fund Search Digest Compensation Survey captures information from industry players at all levels. The respondents are from more than 200 hedge funds firms, including Credit Suisse, Deutsche Bank, Goldman Sachs, and Morgan Stanley.