UFG Russia Select

Fund Type

UFG Russia Select Fund Ltd. was launched 1 December 2002 and is a Cayman Islands-exempted company. The fund is denominated in US dollars.

Fund Objective

The investment objective of the Fund (long/short equity) is to achieve long-term capital growth, primarily through investment in equities actively traded in markets of the Russian Federation.

Investment Strategy

• — Under normal market conditions the Fund will have mainly long positions. However, when market or economic conditions are unfavorable for investors, the manager may invest assets in a defensive manner by holding all or a substantial portion of its assets in cash (cash equivalents) or opening short positions
• — The manager does not attempt to time the direction of the entire market but keeps the flexibility to increase its short exposure (value of the securities held short) depending on which market opportunities — long or short — look more attractive
• — The Manager can use leverage but generally does not anticipate the Fund being leveraged in excess of 25% of its total assets

Legal Structure

• — The Manager: UFG Advisors Limited, a company incorporated under the laws of Bermuda, specializing in investments in Russia
• — Independent Auditors: PricewaterhouseCoopers, Cayman Islands, British West Indies
• — Cayman Counsel to the Fund: Ogier, Grand Cayman, Cayman Islands, British West Indies
• — U.S. Counsel to the Fund: Akin, Gump, Strauss, Hauer & Field, LLP New York, New York
• — Administrator: Delphi Management Limited, Hamilton, Bermuda
• — Custody: Credit Suisse (London)

Fees and Procedures

Management Fee — 2 p.a.

Performance Fee — 20%

• — Class A shares over hurdle rate 8% + loss carry forward
• — Class B shares over hurdle rate 5% (starting January 2006) + loss carry forward

Minimum Investment — US$250,000

Subscriptions: monthly, on the first business day of each calendar month

Redemptions: monthly with at least 30 business days written notice prior to the proposed redemption date