Evli Ruble Debt

Investment Policy

Mutual Fund Evli Ruble Debt is is a long-term corporate bond fund that invests its assets primarily in bonds and other fixed income instruments issued by the Russian Government and Russian companies, public corporations and other entities. The fund invests the majority of its assets in ruble-denominated targets. Derivatives contracts may be invested in, both for hedging purposes and as part of the Fund’s investment activity in line with its objectives. The Fund may invest a maximum of 10% of its assets in the units of other mutual funds.

Investment Objective

The fund seeks returns that are substantially higher than in traditional fixed income funds. As a consequence, the risks are greater. Although fluctuations in the price of the Russian ruble enable returns to be sought in addition to interest returns, these also increase the fund’s risk. If the ruble becomes weaker, the fund will strive to actively hedge against currency rate fluctuations. Additionally the Fund’s appreciation may be influenced by the emerging Russian market’s settlement risk, liquidity risk and custodian risk.

We recommend the fund to investors

• who wish to benefit from the potential returns of investing in the fast growing Russian corporate bond market
• who look for a yield that is higher than offered by funds investing in fixed income instruments or corporate bonds of developed markets, and that understand the risk associated with emerging markets
• who have a long-term investment horizon (3-5 years)