II. Investment declaration

1.       The investment policy of the Managing Company is aimed at short-term investment of the Funds into securities to obtain a gain on the property included in the Fund.

2.       The property included in the Fund can be invested into:

§         state securities of the Russian Federation;

§         state securities of subjects of the Russian Federation;

§         municipal securities;

§         equities in Russian open joint-stock companies, with the exception of equities in Russian joint-stock investment Funds, that rank among real estate Funds or Fund of Funds;

§         bonds of Russian economic societies, the state registration of the issue of which was accompanied with the registration of the bond issue prospectus or with regard to which a prospectus has been registered;

§         investment units of open-endeded and interval unit investment funds;

§         investment units of close-ended unit investment funds, included into the stock exchange quotation lists;

§         securities of foreign states;

§         securities of international financial institutions;

§         equities of foreign companies limited by shares;

§         bonds of foreign commercial organizations.

The Fund's assets shall be invested into the ordinary and preferred equities of issuers inside Russia and into the equities of foreign issuers that mainly belong to the following industries: power industry, fuel industry, communications and telecommunications, chemical industry, mechanical engineering and metal-working, metallurgy, trade, transportation, food industry, financial sector and insurance, forest, woodworking, pulp & paper industry, mining industry, construction, science & science service, building materials industry, consumer industry, housing maintenance & utilities, petrochemical industry, medical industry, printing industry, agriculture, glass, porcelain & earthenware industry, fragrance & cosmetics industry.
The assets included in the Fund may be invested into the bonds the issuers of which could be:

   - federal executive authorities of the Russian Federation;
   - executive authorities of subjects of the Russian Federation;
   - local authorities;
   - foreign states;
   - international financial institutions;
   - Russian and foreign legal entities.

The Fund's assets may include monetary funds, including foreign currency on accounts and as deposits in credit institutions.
Only the securities for which the recognized quotations are available as of the date of entry into the purchase agreement or as of the prior date can be acquired as the Fund's assets. The above requirement does not apply to the investment units of open-endeded unit investment funds, and the state securities of the Russian Federation, the terms of issue and circulation of which envisage secondary circulation on the securities market, should such public securities be acquired if offered via auction.
Securities from issuers inside Russia, investment units in open-ended and interval unit investment funds, securities issued by foreign states and international financial institutions, in which the included into the Fund shall be invested, can be both included and left out from the stock exchange quotation lists.
The acquisition of foreign currency, foreign currency securities as the Fund's assets shall be accomplished in the manner set forth by the foreign exchange control law.

The Fund's assets shall not include:

   - equities in Russian joint-stick investment funds and investment units in mutual investment funds, should the investment reserve of such joint-stock investment funds or such unit investment funds be under trust management (management) of the same Managing Company which is entrusted with the management of the Fund;
   - state securities of subjects of the Russian Federation and municipal securities left out from the equity exchange quotation lists;
   - securities of foreign states and those of international financial institutions, left out from the list approved by the federal executive body for the securities market.

Equities in foreign joint-stock companies and bonds from foreign profit organizations may be included in the Fund's assets provided that they have passed the listing procedure at equity exchanges inside the states, with the state bodies of which (monitoring the securities market) the federal executive body for the securities market has concluded, pursuant to the applicable procedure, the cooperation & data exchange agreement.

Within the period of the Fund formation its assets shall only be composed of the property contributed by the investment units' holders.

3.       The structure of the Fund's assets shall simultaneously comply with the following requirements:

   - the monetary Funds deposited in a single credit institution may not exceed 25 percent of the value of the assets;
   - the estimated value of state securities of the Russian Federation, state securities of subjects of the Russian Federation, municipal securities, bonds from Russian economic societies, bonds from foreign profit organizations, securities issued by international financial institutions and securities from foreign states may not exceed 40 percent of the value of the assets;
   - the estimated value of securities from foreign states, securities issued by international financial institutions, equities in foreign joint-equity companies and bonds from foreign profit organizations shall not exceed 20 percent from the value of the assets;
   - during no less than two-thirds of the days that are not weekends and public holidays, within one calendar month, the estimated value of equities in Russian joint-stock companies, save for the equities in Russian joint-stock investment funds, and equities in foreign joint-stock companies shall be at least 50 percent of the value of the assets;
   - the estimated value of the state securities of the Russian Federation or state securities of subjects of the Russian Federation from the same issue may not exceed 35 percent from the value of the assets;
   - the estimated value of the securities from one issuer (save for the state securities of the Russian Federation and state securities of subjects of the Russian Federation) may not exceed 15 percent from the value of the assets;
   - the estimated value of the securities which have no recognized quotations, save for the investment units in open-ended unit investment funds, may not exceed 10 percent from the value of the assets;
   - the estimated value of the equities in Russian joint-stock companies and bonds issued by Russian economic societies, entered into the "I" equity exchange quotation list, and also of those left out from the equity exchange quotation lists, may not exceed 50 percent from the value of the assets;
   - the estimated value of the equities in Russian joint-stock investment funds and investment units of mutual investment funds may not exceed 10 percent from the value of the assets;
   - the quantity of the investment units in the mutual investment fund may not exceed 30 percent from the quantity of the investment units issued by such mutual investment fund.

This clause shall become valid on completion of the Fund formation.

4.       Description of investment-related risks.
Investment into securities is associated with high risk and does not imply any guarantee on behalf of the issuer, both with respect to repayment of the principal and the interest charged upon such. Besides that, the risks of investing into securities include the following:
increased political risk of expropriation, confiscatory taxation, the failure of the state to perform its securities-related obligations, devaluation and fluctuation in the currency exchange rates, the policy aimed at the curbing of investment profitability, including but not limited to restriction of investment into the industries which make the sphere of such state's particular concern.
The Managing Company shall take every action required to ensure complete credibility and trustworthiness of the information which shall be used as a basis for acquisition of the securities. Nonetheless, the investor shall bear the risk of losses related to the decrease in the value of the Fund's investment units. The investment profitability is not guaranteed in the future; neither shall the state guarantee profitability of the investment for the Fund. Past performance indicators of the Managing Company shall not guarantee the Fund's profitability in the future; the investor shall independently make a decision on whether or not purchase units in the Fund after having studied these Rules of the Fund, its investment declaration and assessment of the respective risks.