Notification on starting the liquidation of an ope

Dear Customers,

Following the assessment of performance of open-end mutual funds managed by ABLV Asset Management, IPAS and the situation in financial markets, the decision on reorganization of corporate bond fund ABLV High Yield CIS Bond Fund has been made.

The fund was established in June 2007 for the sake of offering the investors the opportunity to make diversified investments in the debt securities (denominated in USD) issued or guaranteed by the commercial companies registered in the CIS states, those securities having relatively high expected return.

In January 2012, the fund was split into two subfunds — ABLV High Yield CIS USD Bond Fund and ABLV High Yield CIS RUB Bond Fund — so that investors could make investments in Russian roubles as well. Both subfunds share the same investment policy and management principles. Since January 2012, the share value of both subfunds has grown by more than 30%, and their annualized return since inception exceeds 5%.

However, unfavourable taxation regime applicable to the securities of the Russian issuers denominated in Russian roubles (up to 30% tax on interest income) preclude expected return of ABLV High Yield CIS RUB Bond Fund from meeting the investors’ interests in terms of the risk-return ratio. Also, this subfund was less popular among the investors because of quite unpredictable and drastic fluctuations in the rate of Russian rouble against the USD and EUR. Therefore, the decision on terminating the operations of this subfund was made, enabling the fund manager to use the resources more efficiently, entirely focusing on the USD subfund management.

Following the permission given by the Financial and Capital Market Commission, the liquidation of ABLV High Yield CIS RUB Bond Fund will be started on 27 September 2017, and the same is planned to be completed by the end of December. Given the beginning of liquidation, redemption of the investment certificates of ABLV High Yield CIS RUB Bond Fund will be stopped from 27 September 2017.

Distribution of the liquidation revenues to the subfund investors will be performed after all property of the subfund is sold, and the investors’ claims will be satisfied in monetary form. Should you have any questions, please call +371 6700 2777.

Yours faithfully,

ABLV Asset Management, IPAS