Russian Prosperity Fund USD

(C)

Fund Investment Objectives

The Fund invests about 70% of its assets in the larger, blue-chip Russian companies, while the remainder may be invested in small and mid-cap stocks. The Manager uses a fundamental bottom-up approach, based on internal research. The Manager 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 Manager works with active stock selection, resulting in individual stock holdings that often differ significantly from market indices. In search of relative value and growth, the Fund tends to be overweight preferred shares and second-tier stocks. In line with a consistent fundamental value and growth approach, the Fund generally avoids trying to time the market. The Manager's investment team, which is based in Moscow, has worked together since 1996. The investment team uses internal research, structured on a sector basis. The investment team makes over 300 company visits per year and is represented on the board of directors of several leading Russian companies. A core list of some 150 companies - being 95% of the market's Capitalization - is closely followed. AUM combines all Russian Prosperity Funds and is in USD. Minimum investment is in Euro.