Ansher Fund Management Launches Ansher Regional Natural Resources Fund

Online, July 13, 2011 (Newswire.com) - Ansher Fund Management is proud to announce that it has pioneered in launching yet another new and unique investment product - Ansher Regional Natural Resources Fund. The new Equity Fund is specifically designed for international investors that are willing to gain a direct exposure to lucrative equity markets of natural resource companies in the countries along the Great Silk Road, the most dynamic and fastest growing Region in the world.

Ansher Regional Natural Resources Fund is an open-end equity fund with key investment focus primarily on publicly listed securities of companies operating in natural resources sector of new frontier markets of Russia, Kazakhstan, Ukraine, Uzbekistan, Turkmenistan, and Western China. The Fund is expected to deliver a superior portfolio performance by taking advantage of undervalued equity positions in natural resource companies and to serve as a unique vehicle providing access to investors to the quality natural resources rich region. During interview with potential investors, Mr. Ravshan Yunusov, Managing Director of Ansher Fund Management, commented: "Uniqueness of Ansher Regional Natural Resources Fund as an investment product is that it offers an efficient mix of access to attractive new frontier markets along the routes of the Great Silk Road and to lucrative Natural Resource companies in the Region."

The countries within the Fund's regional mandate are estimated to possess around 12-15% of global natural resources, including oil and gas, precious metals, ferrous and base metals, rare earth metals, energy products, chemicals and many other, yet the GDP contribution of the region stands at around 0.42% of the global GDP, which represents the huge upside potential for the Natural Resources Fund. As a key showcase, Russia is by far number one globally on natural gas reserves by possessing over 25% of the global reserves.

Russia also holds over 5% of global oil reserves, which put the country at 8th position globally. Similarly, Kazakhstan is estimated to have around 39.8 bln barrels of crude oil reserves and around 2.5 trillion cubic meters of proven natural gas reserves. Kazakhstan is 18th largest oil producer in the world and has around 3% of the world's oil reserves. The country's metal resources include 17% of uranium deposits, 7.6% of zinc deposits and 2% of the world's copper. The Region is also extremely rich with precious metals such as gold. Uzbekistan, a country located on the Tian Sian Gold belt, the second largest gold endowment in the world, is estimated to possess around 5,300 tons of gold, fifth largest gold reserves globally.

At the same time, the China factor had uniquely formed a synonym for an irrepressible engine of growth that was significantly driving global demand for natural resources. While China's GDP expanded at an average annual rate of about 10% over 2000-2010, its annual demand for industrial raw materials grew even faster. Just to name few, aluminum consumption grew 16%, copper consumption - 13%, nickel - 23% on average each year. Moreover, China's current energy consumption accounts for 18% of the global total. Therefore, natural resources rich CIS and Central Asia will play a main strategic role in satisfying the Chinese demand.

Furthermore, the investment opportunities are excellent as the Region with total market capitalization of USD 1.1 trillion offers over 200 listed companies operating in natural resources sector and valuations are currently attractive with average PE ratios of 5-7. The Region's low correlation with global markets also offers investors extensive diversification benefits. The Fund is managed by dedicated investment professionals who came from different backgrounds, educated and gained experience in well recognized western universities as well as global financial institutions. Ansher combines and integrates the most talented, ambitious, and fundamental and research driven people into specifically dedicated Natural Resource Team that have mastered to demonstrate a groundbreaking track record with average annual net performance of over 40% for the past five years. With strong presence and full-fledged operating offices based in key cities like Almaty (Kazakhstan), Tashkent (Uzbekistan) and Urumqi (China), Ansher's team effectively combines international experience with local and regional expertise. "The combination of a uniquely attractive investment theme with the experienced investment team at Ansher Fund Management is what, in my opinion, will make this new product very successful", comments Dr. Philipp Cottier, Member of the Advisory Board of Ansher. "For the years I have known Ansher, this is the team in Central Asia that is the best positioned to take full advantage of the investment opportunities in the Natural Resources sector of the Region".

Natural resources sector of the selected countries is very attractive, yet still the investment opportunities in the sector remain relatively untapped and cheap, which represents significant further growth potential. With five year track record in managing equity funds and by outperforming the closest benchmarks in the region by 3x margin, Ansher Fund Management has demonstrated the will and the capability to unlock this hidden potential, and the investment team is fully committed to deliver outstanding performance for the Fund.