VTB Capital Russia & CIS

Equity Fund Ltd

Fund Investment Objectives

The investment objective is to achieve capital growth by investing in a portfolio of Russian and CIS securities. The Fund generally invests about 70% of its assets in large-cap, liquid Russian and CIS stocks while the remainder may be invested in other high quality Russian and CIS companies as well as small-cap stocks. Investments may include entities incorporated outside of Russia and/or the CIS whose operations and/or assets are concentrated in Russia and/or the CIS. The Fund is actively managed using a fundamental value, long-only/non-activist strategy, with no leverage and occasional short-term investments depending on special situations and price momentum. The cornerstone of the portfolio construction process is a bottom-up stock picking approach with an adequate diversification level. The Fund's investment style profile could be characterized as 50% value, 50% growth at a reasonable price. The security selection process of the Investment Team is built on a combination of in-house DCF modeling together with other valuation metrics used to determine the most attractive/expensive stocks within the sector and to place overweights / underweights accordingly. The Investment Team believes that the financial markets of Russia and the CIS are still underdeveloped, which makes them relatively inefficient compared to developed markets and allows market participants to significantly improve the risk-return trade-off in the long run. Actual inception date is May 15, 2012.