Russian Federation First

Mercantile Fund Class E EUR

Fund Investment Objectives

The principal investment objective of the Fund is to achieve long-term capital appreciation. The Fund will invest either directly or indirectly in a diversified portfolio of securities and other instruments of companies or other entities established in, or which have their primary business in one or more countries in the Region. The Fund intends to invest with emphasis on equity and equity-related securities of companies and other entities established in the Region. The Fund intends to diversify into debt securities on a special opportunity basis. The Fund will attempt to structure a portfolio consisting of liquid shares of major companies in the Region and less liquid and illiquid second and third-tier companies that the Manager today believes to be significantly undervalued relative to other companies in the Region and where the Manager expects future liquidity to provide significant appreciation in the value of such companies. The Fund will invest in both quoted and unquoted securities. Debt securities in which the Fund invests may not be rated. Share classes A EUR and A USD incepted May 2001. AUM reflects the aggregate of various share classes and is denominated in USD.