Updated April 6, 2008

   Troika Dialog managing company is the first company among the Russian players to establish an investment fund in Japan the stocks of which will be offered to the investors by public subscription. Within the first year of operation at the new market the company intends to attract $100 million. Managing companies consider Troika Dialog strategy prospective.

However, it is not so easy to implement it in terms of the conservative attitude of the Japanese investors towards the foreign companies' securities.

   Troika Dialog coupled with the Japanese bank Shinsei Bank Ltd establishes the Shinsei Troika Russia Fund

in Japan, which purpose is to invest in the securities of the Russian companies.

As said Troika Dialog president Pavel Teplukhin, the fund stocks would be spread by public subscription from 12th till 29th of May.

After IPO Shinsei Bank continues to offer stocks subscription of the fund within an indefinite period.

Mr. Teplukhin thinks qualified investors are the prospective clients of Shinsei Troika Russia Fund.

According to his estimations, within the first year of the fund operation the Japanese investors can bring $100 million in. "We would surely want to attract the much bigger volume of investments. But even if we fulfilled this plan, it would be the victory", says Mr. Teplukhin.

According to Dengi journal data, as of January 1, 2008 Troika Dialog occupied the third place in the list of the largest Russian managing companies. The volume of assets being in the trust management of the company totaled RUR 115,3 billion.

    Shinsei Bank was founded in 2001 as a consequence of Long Term Credit Bank bankruptcy, and was later privatized by the group of foreign investors headed by

the American financial company Ripplewood Holdings.

Shinsei Bank enters the top three of the largest Japanese banks. As of January 1, 2008 its assets totaled $104 billion. Investment business is one of the bank core directions.

   Some market participants mark Troika Dialog becomes the first Russian company to offer the Asian inves

tors to purchase the stocks of the Russian companies by public subscription. Solid-management managing company and Metropol company have been establishing investment funds in Japan.

"Until now the Russian managers, including us, have been entering the Asian markets, but only the limited range of investors could have purchased the stakes in these funds", says the member of Solid-management company directors' board Vadim Sachkov. According to him, Solid-management has established the fund costing $100 million.

   According to the experts' estimations, the volume of Japan's portfolio investments in Russia is currently estimated at $1 billion. However, this direction is one of most prospective for the Russian managing companies. "Japanese is the nation, where almost all are engaged in investments. This the way of their life", Pavel Teplukhin explains.

"Thus, there are high savings norms

there. For example, in one of Tokyo districts the retail investors invest $50-60 billion into the stock market instruments.

It approximately equals the investments of all Russians".

   On the other hand, the Japanese investors are traditionally considered as conservatives and prefer to invest their facilities into the Japanese companies, as experts specify. "The Japanese market is rather conservative, and it is quite hard for the foreign player to conquer its small part, at least", reckons Arudzhi Asset Management managing company director general Alexander Smetanin. For instance, the experience of some western managers which declared about the ambitious plans in Japan; however they could not establish the required volume of funds.

In Vadim Sachkov opinion the core obstacle for Troika Dialog becomes the Japanese legislation. "One of the difficult issues is to receive permission of the Japanese Ministry of Finance to gather means to invest in Russia", an expert says.

   However, the market participants mark the problems that can arise at the Russian company are leveled by a partner represented

by Shinsei Bank. "Troika Dialog has provided itself the reliable protection against the fund clients, as the contact will be established by means of Shinsei Bank", Mr. Smetanin considers. According to his opinion, such operation scheme minimizes the possible risks. Vadim Sachkov consents.

"The Russian company has just successfully to apply its experience of the assets management at the Russian market. In this case, it would a piece of cake for the company to gather $100 million at the Japanese market".