Prosperity Fund EUR

Fund Investment Objectives

Russian Prosperity Fund Euro invests in the Russian equity markets emphasizing local company research. As the risks in these markets are high, the Fund is most suitable as a diversifying component of a broader equity portfolio with investments in more established markets such as Europe and/or the US. The Fund invests in Russian equities with the objective of maximizing the return on its assets. The Fund invests within the restrictions of the EU Act on common funds (UCITS), which means that the Fund is composed differently from a market- weighted index. The long-term objective of the Fund is to provide a return higher than the RTS1-Interfax index as calculated by the Russian Trading System. The Fund uses a fundamental bottom-up approach, based on internal research. The Fund carefully selects relatively undervalued and well-managed companies that will benefit from the transition and the developing new market environment in Russia. The investments, therefore, tend to be made with a medium to long-term investment horizon. The main investment approach is value, whereas growth for the coming years is also considered. The Fund tends to be overweight preferred shares and second-tier stocks. Arbitrage possibilities, arising from a stream of M&A in the market place, are actively used. Minimum investment is in EUR.