Statement of Investment Policy
(Thomson Reuters ONE) - Prosperity Russia Domestic Fund Limited Statement ofInvesting PolicyProsperity Russia Domestic Fund Limited (the "Company") todaynotifies its investing policy pursuant to the new requirements of AIMRule 8. The Company's investing policy as set out in thisannouncement is as originally disclosed in the Company's admissiondocument at the time of its admission to AIM on 21 February 2007. TheCompany has substantially implemented its investing policy andcontinues to actively manage its portfolio in accordance with it.Investment Objective and Strategy:The investment objective of the Company is to achieve capital growthby investing in a portfolio of securities issued by companies in thesectors of the domestic economies of Russia and other NIS countrieswhich are expected to benefit from the increase in consumer demandand capital investment in such countries. The Company will investprimarily in small and medium-sized companies, with the aim of beingan active and influential minority shareholder.The Company will invest at least 75% of its gross assets in thesecurities of listed and unlisted companies established or havingtheir principal operations in Russia. The Company will be permittedto invest up to 25% of its gross assets in the securities ofcompanies established or having their principal operations in NIScountries other than Russia, which Prosperity Capital ManagementLimited (the "Manager") expects to be primarily the Ukraine andKazakhstan; however, the Company may, within such limitation and onan opportunistic basis, invest in the securities of companiesestablished or having their principal operations in other NIScountries.The Company will seek to fulfil its investment objective by makinginvestments in a limited number ofinvestment opportunities, primarily in small and medium sizedcompanies in Russia and other NIS countries in (i) the domesticconsumer sectors, such as retail and consumer goods, (ii) sectorswhich enable domestic consumer growth, such as banking and (iii)sectors related to capital investment, such as telecoms, power,construction, maintenance services and cement manufacture. However,the Company may invest in other sectors of the economies of Russiaand other NIS countries which are expected to benefit from theincrease in consumer demand and capital investment in such countries.Investment will be directed towards companies considered attractivefrom a fundamental value and growth perspective.Borrowing:The Company's articles contain standard borrowing powers for theCompany to borrow up to US$100 million, which powers may be exercisedby the Company's board of directors. However, the directors intend inpractice to restrict any such borrowings to a maximum of 20% of NetAsset Value (calculated as at the time the borrowing occurs). TheCompany will not invest in derivatives other than for the purposes ofefficient portfolio management and in any event not in a manner whichincreases the level of the Company's borrowing beyond that statedabove. To date the board of directors has not exercised theseborrowing powers.Investment Restrictions:Investment of the Company's assets is subject to certainrestrictions. The directors of the Company have determined that therestrictions below will apply:(i) The Company may not invest less than 75% of itsgross assets in the securities of companies established or havingtheir principal operations in Russia.(ii) The Company may not invest more than 25% of itsgross assets in the securities of companies established or havingtheir principal operations in NIS countries other than Russia.(iii) The Company may not make any investments in debtsecurities other than (a) convertibles (b) in connection with makingan equity investment or (c) when making short-term investments ascontemplated in Section 5 of Part 1 of its admission document, headed''Short-Term Investments''.(iv) The Company may not invest more than 20% of itsgross assets in the securities of a single underlying issuer(including the issuer's subsidiaries or affiliates), or in any one(or more) collective investment undertaking which may invest inexcess of 20% of its gross assets in other collective investmentundertakings (whether open-ended or closed-ended).(v) The Company may not invest in more than 25% ofthe equity securities of any one company.(vi) The Company may not expose more than 20% of itsgross assets to the creditworthiness or solvency of any onecounterparty. The foregoing restriction will not apply to (a)investments in securities issued or guaranteed by a government,government agency or instrumentality of any EU or OECD member state,or by any supranational authority of any EU or OECD member state, or(b) cash deposits awaiting investment.(vii) The Company may not invest directly in physicalcommodities or real property. The foregoing restriction shall notapply to investments in securities of issuers that make investmentsin physical commodities or real property.(viii) The Company may not invest in any pooled investmentvehicles, other than when making short-term investments in thecircumstances referred to in clause (v) of Section 5 of Part 1 of itsadmission document, headed ''Short-Term Investments''.(ix) The Company may not invest in derivatives otherthan for the purposes of efficient portfolio management and in anyevent not in a manner which increases the level of the Company'sborrowings beyond that stated above in the section entitled"Borrowing".The foregoing restrictions apply at the date the relevant investmentis made.Dividend Policy:The Company's objective is to achieve capital growth. It is thereforeanticipated that all income and capital gains derived from theCompany's investment programme will be re-invested. However, incomeand capital gains may be distributed to shareholders, if thedirectors deem it appropriate. No dividend has been declared to dateand to the extent that any dividend is declared, it will be paid incompliance with any applicable laws.Liquidity Events:The Company, acting on the advice of the Manager and taking accountof the investment programme of the Company and the prevailingconditions of the local markets, will no later than the fifthanniversary of its admission to AIM, and each following anniversaryput to the vote of its shareholders the option of realising theCompany's investments and winding up the Company, which the Companywould seek to carry out within twelve months of the date of suchdetermination.The Company will pursue such option if it is voted for by not lessthan 75% of members voting on theresolution. If such option is not voted for by such majority, theCompany will continue to conduct itsoperations pursuant to its existing investment objective andarrangements.Enquiries:Elly Wordsworth, Prosperity Capital ManagementTelephone: +44 (0) 20 7299 6950Tom Franks, KPMG Corporate Finance (Nominated Adviser)Telephone: +44 (0) 20 7311 1000KPMG Corporate Finance, a division of KPMG LLP which is authorisedand regulated by the Financial Services Authority for investmentbusiness activities, is acting for the Company as nominated adviserin relation to the matters set out in this announcement and is notacting for any other person in relation to these matters. KPMGCorporate Finance will not be responsible to anyone other than theCompany for providing the protections afforded to its clients or forproviding advice in relation to the contents of this announcement.---END OF MESSAGE---This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 13.11.2009 - 19:02 Uhr
Sprache: Deutsch
News-ID 8396
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