The investment objective is to achieve medium/long-term capital appreciation by investing in a portfolio of Russian and CIS fixed income instruments, denominated in local and international currencies. Investments may include issuers incorporated outside of Russia and/or the CIS whose operations and/or assets are concentrated in Russia and/or the CIS. 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 for a significant improvement of the risk-return trade-off in the long run. The Fund is actively managed, utilizing up to 50% leverage, having an annual portfolio turnover of 50-200% with average position holding period of 3-12 months. Currency allocation is based on proprietary in-house fundamental research. The decision on target portfolio duration is based on anticipated direction of interest rates and liquidity conditions supported by our macroeconomic research. The average credit quality of the Fund's portfolio is a result of the Investment Team's general perception regarding attractiveness of Russia & CIS credit risk, given the stage of the economic cycle. Having set the portfolio target duration & credit quality, the Investment Team selects securities offering the best possible trade-off in terms of market credit spread versus credit quality in strict compliance with an internal limit system. The Fund mainly invests in investment grade fixed income securities issued by governments, local municipalities, corporate and other issuers of Russia and/or of other CIS countries, including Eurobonds and convertible bonds. The Fund also invests in derivatives, such as CDS, CLN, LPN and other financial instruments related to fixed income instruments. Actual inception date is May 15, 2012.