II. Investment declaration
1. The investment policy of Managing Company is aimed at short-term investment into securities to obtain a gain on the property included in the Fund.
2. The property of the Fund may be invested into securities included in calculation base of MICEX Index, being the official summary index of MICEX Stock Exchange, closed joint-stock company (hereinafter referred to as the "index").
Only monetary funds, including foreign currency on accounts and as deposits in credit institutions and securities included in calculation base of the index may constitute the Fund assets.
The Fund's assets shall be invested into ordinary and preferred equities issued by Russian companies and into the equities in foreign issuers that mainly belong to the following industries:
-power industry,
-oil extracting industry,
-oil refining industry,
-gas industry,
-coal industry,
-slate industry,
-peat industry,
-iron industry,
-non-ferrous metal industry,
-chemical and petrochemical industry,
-heavy engineering, power engineering and vehicle,
-electrical industry,
-chemical and oil engineering,
-machine-tool and tool making industry,
-industry of interbranch enterprises,
-instrument making industry,
-computer industry,
-automobile industry,
-tractor and agricultural engineering,
-road building and public-service engineering,
-engineering for light industry, food industry and household equipment,
-avia industry,
-defense industry,
-ship industry,
- radio industry,
-communication industry,
-electronic industry,
-other branches of engineering industry,
- metal products and constructions industry,
-lumbering industry,
-wood using industry,
-pulp and paper industry,
-wood chemical industry,
-building materials industry,
-glass, porcelain & earthenware industry,
-light industry,
-flavoring industry,
-meat and milk industry,
-fish industry,
-microbiological industry,
- flour-and-cereals industry,
-formula feed industry,
-medical industry,
-printing industry,
-other industrial productions,
-agriculture,
-forest sector,
-public above ground railway transport,
-tram transport,
-public subway,
-railway transport of special use,
-fleet,
-trackless trolley traction,
-highway enterprise,
-major pipeline transport,
-marine transport,
-inland water transport,
-air transport,
-other modes of transport,
- connection,
-development,
-commerce and catering,
-material and technical supply and sale,
-procurement,
-information and computer services,
-geology and exploration, geodetic and hydrometeorological services,
-housing services,
-communal services,
-nonproductive forms of public services,
-public health services, physical culture and social security services,
-arts and culture,
-science & science service,
-finances, credit, insurance, pension coverage.
Securities invested into Fund's property may be both include or left out from the stock exchange quotation lists.
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 Fund's assets. The above requirement does not apply to the securities listed in the quotation list A (of first or second level) of a stock exchange.
Acquisition of foreign currency as Fund's assets shall be accomplished in the manner set forth by the foreign exchange control law of the Russian Federation.
Within the term of Fund formation its assets shall only be composed of the property contributed by investment units' holders.
3. The structure of Fund's assets shall simultaneously comply with the following requirements:
- during no less than two thirds of working days within a calendar month estimated value of securities included in calculation base of the index, shall be at least 85 percent of the assets value;
- difference between percentage share of securities issued by one issuer in the total capitalization of securities included in the calculation base of the index, and the share of these securities estimation value in the fund assets value shall not exceed 3 percent.
- the estimated value of securities in one company may not exceed 30 percent of the value of the assets; - the estimated value of securities for which the recognized quotations are not available may not exceed 10 percent from the value of the assets.
This clause shall become valid on completion of 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.
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 Fund's investment units. The investment profitability is not guaranteed in future; neither shall the state guarantee profitability of the investment in Fund. Past performance indicators of Managing Company shall not guarantee Fund's profitability in future; the investor shall independently make a decision on whether or not purchase units in Fund after having studied these Rules of Fund, its investment declaration and assessment of the respective risks.
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