Evli New Republics

Investment Policy

Mutual Fund Evli New Republics is an equity fund that invests primarily in the emerging markets of Kazakhstan and Ukraine. The fund may also invest in company equities that are subject to public trading in other republics in the Commonwealth of Independent States (CIS). When selecting investment targets, those republics will be focused on which have advanced macroeconomies and capital markets, and that offer sufficiently liquid investment markets. The fund invests in companies that operate in the metals, minerals, oil, gas, banking, information technology, electric and water utilities, machinery and construction sectors, among others.

Investment Objective

The aim is to earn the highest possible return for the assets over a period of more than five years. The fund does not have an official benchmark index.

As the fund's return expectation and risk level are high, we recommend the fund to experienced investors with long investment horizons. The value of the fund may fluctuate abruptly within a short period, as the securities markets of the CIS countries are in an emerging phase and are affected by stronger-than-normal price fluctuations and political risks. Risks are reduced by diversifying the fund's assets widely, along both geographical and sector lines.

We recommend the fund

• to investors who wish to capitalize on the strong economic growth of the CIS countries
• to investors who wish to capitalize especially on the plentiful and unutilized natural resources of Kazakhstan and Ukraine
• to experienced investors who seek a higher investment return but are prepared to tolerate stronger price fluctuation and thus a higher risk than in a normal fund
• as a part of a diversified investment portfolio due to its high risk level
• to investors who have a long-term investment horizon (longer than 5 years)