RUSSIA

To the unitholders in Tundra Rysslandsfond

As part of our efforts to offer our clients an exposure to the most exciting and fast-growing economies in the world, we will merge the fund Tundra Rysslandsfond with the fund Tundra Frontier Opportunities Fund. The merger will improve management efficiency and enable us to offer our customers a more attractive long-term risk-adjusted returns. Tundra Rysslandsfond will cease to exist and the unitholders who choose to do nothing will automatically become unitholders of Tundra Frontier Opportunities Fund. The value of your units are not affected by the merger. The merger occurs automatically and you do not have do anything in response to this letter.

The merger is approved by the Swedish FSA (Finansinspektionen). Tundra Rysslandsfond is merged into Tundra Frontier Opportunities Fund. Tundra Frontier Opportunities Fund is, similar to Tundra Rysslandsfond, an actively managed equity fund. The fund invests in frontier markets. Examples of frontier markets are Vietnam, Pakistan, Bangladesh, Sri Lanka and Nigeria. The fund invests globally and in various sectors. The portfolio management is handled by the same management team that manages Tundra Rysslandsfond.

As a unitholder you are able to buy and sell units as normal without any additional costs in the Tundra Rysslandsfond until 12 May 2017 at 14:30. The trading in Tundra Rysslandsfond will be closed after this date and time.

As a unitholder in Tundra Rysslandsfond you will receive a new number of units in Tundra Frontier Opportunities Fund with the same value as your units in Tundra Rysslandsfond. After the merger, you will receive a statement confirming the transfer of units.

On the next page you will find more information about the merger, important dates and other useful information.

If you have questions, please contact us, telephone: +46-8-5511 4570 or e-mail info@tundrafonder.se.

The merger

• The merger is approved by the Swedish FSA
• May 12 at 2:30pm CET: Last day of trading in Tundra Rysslandsfond
• May 15: The merger is implemented. Units have been converted to Tundra Frontier Opportunities Fund.

The merger occurs automatically and you do not have totake any action. Subscription and redemtion of fund units continues as normal and without any costs.

After 12 May at 2:30pm CET Tundra Rysslandsfond is closed for trading.

The value of your units is not affected by the merger. As a unitholder in Tundra Rysslandsfond, you receive a new number of units in Tundra Frontier Opportunities Fund with the same value as Tundra Rysslandsfond but with Tundra Frontier Opportunities Fund’s share price. All accrued income is taken into account, which means that there is no dilutive effect for you as unitholder.

Special rights in conjunction with the merger: Unitholders in Tundra Rysslandfond have the right to redeem their units from the date this information is provided to the unit shareholders up until 12 May 2016 at 2:30pm CET without any costs. Unit shareholders of Tundra Rysslandsfond also have the right during the same period to change existing units for units in another fund with similar investment policies at Tundra Fonder AB.

Risk profile and fees . The risk profile of Tundra Frontier Opportunities Fund, class 5, is lower than that of Tundra Rysslandsfond, class 7. Tundra Rysslandsfond has the same management fee as Tundra Frontier Opportunities Fund, 2.5%. Ongoing charges is lower in Tundra Frontier Opportunities Fund than in Tundra Rysslandsfond. Tundra Frontier Opportunities Fund does not apply any exit or entry charges.

 Audit: In accordance with current regulation, an audit will be conducted in order to control the methods used to value assets and liabilities in Tundra Rysslandsfond before the merger is implemented. The result of the audit report will be available by contacting us, tel: +46 8-5511 4570 or e-mail: info@tundrafonder.se.

“Russia is the world’s largest country by area, and has vast natural resources. The country is the largest producer of natural gas in the world, and is among the top producers of oil.”

The Russian equity market has among the lowest valuations globally, for well known reasons. The political development is unsecure and relations with the rest of the world is strained. Corruption is vast. The country is one of the most dependent on the oil price. The expectations for future growth are low, and it will not take much to surprise on the upside.

However, between the years of 2000 and 2008 the economy grew by almost 10% annually. The growth was not led by population or improved productivity. Russia actually has had decreasing population since the fall of the USSR in 1991. The growth has mainly come from increasing commodity prices. The oil price quadrupled at the same time as the Russian companies increased production volumes. The federal budget also gained from increased taxation on the resource sectors.

At Tundra we invest in a few of the most well run companies on the Russian stock exchange. We believe that a lot of well run companies can be found among the small caps, and we are not afraid to invest in them. The fund is run by one of the most experienced Russia teams in Scandinavia.

MONTHLY LETTER

We publish a monthly letter with comments on fund performance and market developments. Subscribe by sending us an email at info@tundrafonder.se.
Read the latest update as well as older editions in the archive.

Capital invested in a fund may either increase or decrease in value and it is not certain that you will be able to recover all of your investment. Historical return is no guarantee of future return.

The Full Prospectus, KIID etc. are available on our homepage. You can also contact us to receive the documents free of charge.

Please contact us if you require any further information:+46 8-55 11 45 70