GEM Global

Fund Investment Objectives

The Fund seeks substantial capital appreciation over time, primarily through investments in the securities of Gazprom and, at a later stage, other firms in the Oil and Gas Sector in Russia and the region. Up until foreign investors gain access to the local shares, the Fund will focus on the structured products for restricted Gazprom local shares which trade at an almost 50% discount to the ADRs. Gazprom is a major integrated global energy company headquartered in Moscow, Russia. It accounts for about 25% of world gas production and controls 70% and 94% of the Russia's gas reserves and production respectively. Gazprom local shares trade at a steep discount to comparable companies in terms of earnings, reserves and production. Therefore, it provides a good opportunity to the early investors, who have an above average risk tolerance.