East Capital

Russian Fund

Fund Investment Objectives

The goal of the Fund is to maximize the return on investment for its unit-holders. The Fund's assets can be invested in such financial instruments as shares, convertible bonds, convertible participating bonds, share index bonds, depositary receipts, bonds with warrants, subscription rights, paid subscription shares and warrants.Such financial instruments shall be issued by issuers domiciled in Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldavia, Russia, Tajikistan, Turkmenistan, the Ukraine and Uzbekistan. The issuer may also be domiciled in the EU and EFTA as well as Australia, Canada, Hong Kong, Japan, Singapore and the US, provided that the issuer conducts its primary operations, or primarily invests, in the countries listed above.The Fund's assets can be invested in share options, share futures, index options, index futures, and warrants, provided that the underlying instrument has been issued by an issuer meeting the above-specified issuer requirements. Furthermore, the Fund's assets can be invested in units of mutual funds and foreign fund companies, provided that the mutual funds' and the foreign fund companies' geographical investment strategy is in accordance with this fund's geographical investment strategy.The Fund's goal shall be achieved by investing primarily in financial instruments of issuers domiciled in the former Soviet Union on exchanges, authorised market places, other regulated markets open to the general public and unregulated markets in Armenia (Yerevan), Azerbaijan (Baku), Belarus (Minsk), Estonia (Tallinn), Georgia (T'bilisi), Kazakhstan (Almaty), Kyrgyzstan (Bishkek), Latvia (Riga), Lithuania (Vilnius), Russia (Moscow), Tajikistan (Dushanbe), Turkmenistan (Ashgabat), the Ukraine (Kiev), and Uzbekistan (Tashkent). The number of financial instruments on unregulated markets must not exceed 10 % of the Fund's value. At least 75 % of the fund's assets shall consist of shares and equity-related instruments.