Eastern European Markets
September, 20. 2005

Evli Bank launches Europe’s first fund to invest in Russian corporate bonds

Evli is the first in Europe to offer mutual fund investments in the Russian corporate bond market. Evli Ruble Debt, a fixed income fund launched by Evli Fund Management Company Ltd, invests its assets inbonds issued by Russian companies, banks, and public organizations such as municipalities.

"This is the first fixed income fund to invest in Russia. Its target market will enable returns that are better than those of conventional fixed income investments, without exposure to equity market risk. In our view this is a good time to join the rapidly growing Russian corporate bond market, as Russia becomes wealthier", says Mikael Lundström, Head of Fixed Income at Evli.

Since 2000, the Russian economy has been growing at an average annual rate of nearly seven percent, and it still has great growth potential. In June 2005, the size of the bond market for Russia’s companies and public organizations was around 12 billion euros, compared with just 1.6 billion euros at the beginning of 2002.

The Evli Ruble Debt fund invests the majority of its assets in ruble-denominated assets whose currency risk it can hedge if necessary. Price fluctuations of the Russian ruble increase the fund’s risk, but also
enable additional returns to be sought. However, due to the short maturity of Russian bonds, the fund’s interest risk is lower than usual. Evli Ruble Debt is suitable for investors who seek long-term fixedincome investments with better returns than conventional fixed income instruments. The fund’s minimum subscription is 5,000 euros.

Evli Bank’s recognized expertise in fixed income investment together with Suprema Securities’, Evli’s wholly owned subsidiary, knowledge of the Russian market form a solid base for the fund’s investment activity. Suprema’s experts have accumulated valuable experience of the Russian financial markets through the portfolio management of the popular equity fund Evli Greater Russia.

"Evli Ruble Debt will benefit from our expertise in the Baltic countries and Russia. We offer our customers a superior selection of investment and diversification possibilities on these growing markets", says Maunu Lehtimäki, Managing Director of Evli Investment Management.

For further information:
Maunu Lehtimäki, Managing Director,
Evli Investment Management Ltd,
tel. +358 (9) 4766 9304
Mikael Lundström, Head of Fixed Income,
Evli Investment Management Ltd,
tel. +358 (9) 4766 9321

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