Swedbank Russian Equity Fund

Simplified Prospectus
(Effective as of 30.06.2011)

TRANSLATION FROM ESTONIAN

In case of any discrepancies, between this translation and original Estonian version, the text of Estonian version shall prevail.

SWEDBANK RUSSIAN EQUITY FUND Simplified Prospectus 30.06.2011 Swedbank Russian Equity Fund (hereinafter the Fund) is a public open-ended common investment fund registered in the Republic of Estonia. The Fund complies with the requirements of the Council Directive 85/611/EEC and the legislation of the Republic of Estonia regarding UCITS. Units of the Fund may be offered to the public in the states which are contracting parties to the Agreement on the European Economic Area. The Simplified Prospectus contains the most essential information about the Fund. To obtain complete information, please read the Fund Rules and the full Prospectus. You can find information about the investments of the Fund in the latest monthly overview and in the annual or semi-annual reports of the Fund. All the above documents are available on the website www.swedbank.ee/fondid. Investment objective of the Fund The investment objective of the Fund is long-term growth of the value of the assets of the Fund. The assets of the Fund are invested in the securities of Russian issuers. The Fund may also invest in securities of issuers located outside Russia if the essential business interests of such issuers are connected with Russia or the success of their activities depends on the economic growth of Russia. To achieve the objectives of the Fund, the assets of the Fund are invested in securities of Russian issuers deposits, equities (at least to the extent of 50%) and other equivalent transferable rights, money market instruments and investment fund shares and units. Investments may also be made in other assets in conformity with the Fund Rules and the current legislation; and transactions may also be made in derivative instruments for the purpose of hedging risks and raising the efficiency of managing the portfolio as part of general investment policy for the achievement of investment objective of the Fund. Russia is a region with great development potential. Economic growth is supported by strong macroeconomic indicators. Russian companies have a great growth potential, which is ensured by the vast market and the world's richest natural resources. Russia is one of the world's largest oil and natural gas producers and the world's leading metal producer. The high level of prices of raw materials has increased the state's income from exports and created a local investment resource, which is also poured into activating other branches of the economy. In the opinion of the management company, the favourable economic conditions serve as a prerequisite for a further rise in the equity prices of Russian companies. The Fund applies an active investment strategy. When forming the portfolio, the management company does not specialise by branches of the economy, but on specific equities. The equities are selected proceeding from the main economic indicators and growth potential of companies and from the trends on stock markets. The main principles of investment policy of the Fund and more detailed information about the investment restrictions and risk spreading rules are available in the Prospectus and the Fund Rules.

Funds investment policy

Historical annual rate of return of the Fund

150%
128.0%

Swedbank Venemaa Aktsiafond

120.8% 104.9%

100%
77.1% 56.6%

50%
13.2%

44.3% 34.5% 4.1% 10.3%

0%
-11.8%

-50%

-100%

-86.5%

-78.7%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Cumulative rate of return (as at 30.04.2011) Annual basis 1 year 9,9% 3 years -10,1% 5 years -5,5% Since inception 3,0%

The historical rate of return of the Fund does not guarantee a similar rate of return in the future. Risk level of the Fund Swedbank Russian Equity Fund invests in the equities of Russian companies in a diversified manner and based on its long-term experience. In the opinion of the management company, the economic situation in the investment area allows earning high income, but one must nevertheless consider higher risks as well. Investors must consider the risks that are involved in the investment and may affect the rate of return of the Fund. The value of the investment may both rise as well as fall and when the units are redeemed, the unit-holder may not get back the amount initially invested. Therefore the investors should always ensure whether the risk portfolio of the specific fund is acceptable for them. A more precise description of the risks related to investment of assets of the Fund is provided in the Prospectus. The Fund befits, first and foremost, investors whose risk tolerance is above average and who believe in the growth of the Russian economy in the long run. As a primary investment the Fund is suitable for experienced investors who are aware of the main characteristics and risks of volatile financial instruments and know that the Fund may earn profit or suffer losses and who are prepared for considerable fluctuations of the unit value. It should be opted for a medium-term or longer investment horizon (min 5 years). As an additional investment upon diversification of the investment portfolio, the Fund is also suitable for less experienced investors who wish to benefit from long-term economic growth of a predetermined region. Income of the Fund The income of the Fund is not distributed to the investors, but instead is reinvested. The Funds profit/loss is reflected in the changes of its unit's net asset value. The income of the Fund is not 2

Description of typical investor

subject to taxation in the Republic of Estonia. Taxation of investors The tax system applicable to an investor depends on the investor's residence and legal form. Taxable income arises for a resident natural person of the Republic Estonia from the difference between the acquisition cost of units and their sales price and it is subject to income tax at the tax rate established in the current Income Tax Act. Income earned from unit transactions by legal entities resident in Estonia is exempt from tax. Income earned by a non-resident investor from Fund units is not subject to taxation in the Republic of Estonia. Income may be taxed in the country of residence of the non-resident investor pursuant to the taxation laws of that country. For a more detailed explanation of taxation, investors should consult their tax and investment advisers. Units of the Fund are divided into E-units and I-units. The nominal value of each E-unit is 10 euros; the unit register is kept by Swedbank AS. The nominal value of each I-unit is 100 euros; the unit register is kept by Swedbank AS. In case of initial acquisition of I-units, the minimum amount is 100,000 euros. Unit prices The net asset value of the Fund, the net asset value of the unit and the purchase and sales prices of units are calculated at least once for each banking day on the banking day following such banking day. This information is published on the website www.swedbank.ee/fondid on each day of calculation at 14:00 at the latest1. and Fees and charges withheld from the amount invested by the investor: E-unit issue fee E-unit redemption fee I-unit issue and redemption fees 1.5% of the unit's net asset value 1% of the unit's net asset value 0% of the unit's net asset value

Unit

Fees, charges expenses

Fees and charges deducted from the assets of the Fund upon calculation of the net value of the Fund's assets: E-unit management fee I-unit management fee Depositary's charge Other costs (costs relating to holding and conducting transactions with the assets of the Fund, e.g. transfer costs and service fees) Total fees, charges and costs paid out of the Fund 2% p.a. 1.4% p.a. 0.336% p.a. of the net value of the Fund's assets. pursuant to the price list of the service provider up to 5% p.a.

The management fee and the depositary's charge are deducted from the market value of the assets of the Fund on a daily basis and are paid within the month following the accounting month.
1

The times given are here and hereinafter based on Estonian time.

Only the fees of the management company and the Fund have been set out herein, not the fees or charges of the intermediary or the investor's account manager. All such fees and charges are paid by the investor. Subscription and redemption of units The units of the Fund are publicly offered in the Republic of Estonia, the Republic of Latvia, the Republic of Lithuania, the Republic of Finland, the Kingdom of Sweden, the Republic of Ireland and the Federal Republic of Germany. Transactions in units of the Fund are conducted through intermediaries. The management company has entered into intermediation agreements with the following intermediaries for the public offer of the Fund units: Swedbank AS (www.swedbank.ee), Liivalaia 8, 15040 Tallinn, Republic of Estonia. Phone + 372 631 0310, e-mail info@swedbank.ee. It provides banking services and is supervised by the Estonian Financial Supervision Authority (www.fi.ee). Swedbank A/S (www.swedbank.lv), Balasta Dambis 1A, Riga, LV 1048, Republic of Latvia. Phone + 371 67 444 444, e-mail info@ swedbank.lv. It provides banking services and is supervised by the Latvian Financial and Capital Market Commission (www.fktk.lv). Swedbank AB (www. swedbank.lt), Konstitucijos pr. 20A, Vilnius, LT-03502, Republic of Lithuania. Phone +370 5268 4444, e-mail info@ swedbank.lt. It provides banking services and is supervised by the Lithuanian Securities Commission (www.lsc.lt). Swedbank Robur Kapitalfrvaltning AB (www.robur.se), Malmskillnadsgatan 32, SE-105 34 Stockholm, Sweden. Phone: +46 08-5859 2400, e-mail: fonder.forsakringar@swedbank.se. It provides investment banking services and is supervised by the Swedish Financial Supervision Authority. AS Eesti Krediidipank (www.krediidipank.ee), Narva mnt 4, 15014 Tallinn, Republic of Estonia. Phone +372 669 0900, e-mail info@krediidipank.ee. It provides banking services and is supervised by the Estonian Financial Supervision Authority (www.fi.ee). AS LHV Pank (www.lhv.ee), Tartu mnt 2, 10145 Tallinn, Republic of Estonia. Phone +372 680 0400, e-mail info@lhv.ee. It provides banking services and is supervised by the Estonian Financial Supervision Authority (www.fi.ee). AS Gild Financial Advisory Services (www.gildbankers.ee), Tartu mnt 2, 10145 Tallinn, Republic of Estonia. Phone +372 680 0401, e-mail: gild@gildbankers.ee It provides investment banking services and is supervised by the Estonian Financial Supervision Authority (www.fi.ee). Aktia Fund Management Company Ltd (www.aktia.fi), Kalevankatu 4, 00100 Helsinki, Republic of Finland. Phone +358 (0)10 247 6843, e-mail aktia@aktia.fi. It provides asset management services and is supervised by the Finnish Financial Supervision Authority (www.rahoitustarkastus.fi) Citco Bank Nederland N.V., Dublin Branch (www.citco.com), Custom House Plaza Block 3, International Financial Services Centre, P.O. Box 6639, Dublin 1, Republic of Ireland. Phone (353-1) 636 7100, e-mail dublin-bank@citco.com. It provides banking services and is supervised by the Dutch Financial Supervision Authority (www.autoriteit-fm.nl). HSBC Trinkaus & Burkhardt AG (www.hsbctrinkaus.de), Kningsallee 21/23, D-40212 Dsseldorf, Germany. Phone: +49 (0) 211 9100, e-mail: weservice@hsbctrinkaus.de. It provides banking services and is supervised by the Federal Financial Supervisory Authority (BaFin, www.bafin.de).

The complete list of intermediaries (including the intermediaries which have been added after the amendment of the Prospectus) is available on the website www.swedbank.ee/fondid. The intermediaries send transaction orders to the management company each banking day until 16:00. The intermediary may establish additional time limits to its clients for giving orders. The investor can switch the units for another class of units of the Fund or for the units of such other fund managed by the management company as specified in the Prospectus without issue and redemption fees. 4

Switch of units

Main details of the Fund

Legal status of the Fund:

Public open-ended common investment fund registered in the Republic of Estonia as a UCITS (Undertaking for Collective Investment in Transferable Securities) 26 September 1997 Swedbank Investeerimisfondid AS, address Liivalaia 8, 15038 Tallinn, Republic of Estonia; phone +372 888 6681, e-mail funds@swedbank.ee The management company has transferred the following duties to third persons: Organisation of issue and redemption of units of the Fund Organisation of marketing of units of the Fund Communication of necessary information to investors and other services to clients Keeping account of the assets of the Fund and organising the accounting of the Fund Determining the net asset value of the Fund Organisation of maintaining the register of units of the Fund Organisation of internal audit Investment of the assets of the Fund (as regards making investment decisions upon investment of the assets of the fund) Swedbank AS Intermediaries (see above) Intermediaries (see above)

Inception of the Fund: Management company

Swedbank AS Swedbank AS Swedbank AS Swedbank AS Swedbank Robur Fonder AB

Depositary:

Swedbank AS, address Liivalaia 8, 15040 Tallinn, Republic of Estonia; phone +372 6 310310, e-mail info@swedbank.ee Swedbank AS (see details above) E-unit EE3600073318; I-unit EE3600091302 Monika Peetson, AS Deloitte Audit Eesti, Roosikrantsi 2, 10119 Tallinn, Republic of Estonia Financial Supervision Authority, address Sakala 4, 15030, Tallinn, Republic of Estonia, e-mail: info@fi.ee

Registrar: ISIN code: Auditor: Supervision:

Members of the Management Board of Swedbank Investeerimisfondid AS:

Chairman of the Management Board Swedbank Investeerimisfondid AS

Agnes Makk

Management Board Member Swedbank Investeerimisfondid AS

Meelis Hint