Presentation of the fund

This is a fund investing in Russian equities.

Benchmark

• None

Objective of the fund

The Fund aims to preserve Russian investments held by the Fund that have been affected by sanctions and have therefore become illiquid, and to make them available to investors should these assets become liquid again at a later date.

Investment policy

In order to protect investors’ interests, the Fund Manager—with the approval of the Hungarian National Bank—has divided the assets in the Fund’s portfolio into liquid and illiquid segments and has created separate series of investment units for each.
The Fund’s liquid assets were placed in the liquid series, and trading in these has resumed. A significant portion of these assets is currently denominated in dollars or euros. The other, so-called illiquid portion, in which an illiquid counterpart was created for each liquid series. These illiquid series include Russian equities, which, due to Russian and European regulations and sanctions, still cannot be traded and were therefore valued at a significant discount relative to current Moscow market prices. The Fund’s ruble holdings were also placed in the illiquid series.
Our primary goal is that, should the current sanctions be lifted and all investors - including the Fund - regain access to their Russian investments and funds, the Fund’s owners will be able to benefit from any changes in the value of these assets. However, the Fund’s liquid portion does not offer this flexibility; it currently most closely resembles a money market fund holding foreign currencies. For this reason, investors in the currently offered liquid series do not gain exposure to Russian equities but instead assume the risk of a money market fund composed of a mix of foreign currencies.