The Russia Federation First Mercantile Fund was incorporated in Guernsey Channel Islands on 3 November 1997 and continued into Bermuda on 4 October 2000 as an open-ended mutual fund company. The Fund is an amalgamation of two pre-existing companies namely, First Mercantile Emerging Russia Fund Ltd. a company that was incorporated in Guernsey Channel Islands and continued into Bermuda and the Russian Federation Fund Limited a company that was incorporated in the British Virgin Islands. On 27 April 2001 the shareholders of each Amalgamating Company resolved to effect the amalgamation of each company into the Fund. Pursuant to an amalgamation agreement dated 30 April 2001, the amalgamation became effective on 1 May 2001.

The principal investment objective of the Fund is to achieve long-term capital appreciation. The Fund will invest either directly or via its wholly owned trading subsidiary CER Investments Limited (the “Subsidiary”) in a diversified portfolio of securities and other instruments of companies or other entities established in, or which have their primary business in one or more CIS countries (the “Region”). The objectives can be changed by the Directors with full disclosure to all shareholders.

The Fund intends to invest with emphasis on equity and equity-related securities of companies and other entities established in the Region. The Fund intends to diversify into debt securities on a special opportunity basis.