TCF Investment Strategy
Until TCF was created, institutional and other investors interested investing the TCF's target market were forced to choose among funds, fund managers and strategies in an area with which they were unfamiliar. Selecting a single fund with a single strategy forced investors to limit options or make multiple uninformed choices.

TCF was launched to offer Investors the opportunity to participate in the target markets without having detailed knowledge of the marketplace - without incurring major risk.

The Fund's success in its target markets brings up the question as to why, if the returns are so great and the risks so low, more investors do not invest in emerging markets, driving up prices to the levels in developed countries and squeezing returns down to the same levels?

The Fund's management has coined the term "fear arbitrage" to explain this phenomenon. Fear arbitrage is the:

1. Lack of familiarity;
2. Ignorance of the language and culture;
3. Geographical distance;
4. Constant "yellow journalism" reporting which focuses exclusively on the negative;
5. Historical reputation;
6. Negative trends that get more attention than counterbalancing positive trends; and
7. Other similar factors which lead to a high level of concern, if not outright fear, of investing in emerging markets, particularly Russia and the CIS.

1. targeting underlying funds that have returned approximately 35% annually for at least five years and/or new funds managed by fund management teams that have managed other funds that meet this criterion in its target markets;
2. selecting funds with stable, experienced management teams, based in their particular market, with managers who are well known to the senior fund managers, are also considered;
3. selecting underlying funds with a broad range of characteristics in terms of strategy, market capitalization emphasis, sector focus and fund size, providing significant diversification despite the small number of underlying funds in which Fund invests;
4. investing in a number of underlying funds to maximize the impact of a successful performance by any single fund;
5. selecting underlying funds that invest only in publicly traded securities that have sufficient trading volume to ensure reasonable liquidity;
6. employing banks, custodians, administrators, auditors and other service firms located exclusively in financially developed markets outside of Russia; and
7. investing solely in funds that meet TCF's other quantitative criteria.