Marcuard Spectrum Investment Management and Advisory in Russia

Spectrum Russia Absolute Return Fund, Ltd. Performance Report – July 2008

Monthly Returns (%, net of all fees)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year NAV (31/07/2008) $262.86 2003 -2.05 5.91 0.32 8.61 1.76 3.94 -1.37 3.04 2.86 1.18 -1.41 0.84 25.71 July -11.23% 2004 0.89 4.21 3.72 -5.07 -0.93 0.69 -3.97 3.87 6.13 3.24 -2.11 -0.37 10.07 Net Return 2005 -0.95 2.79 -2.61 0.35 2.42 1.02 1.75 2.79 6.60 2.37 4.91 4.63 29.00 YTD Net Return -10.65% 2006 11.28 0.54 2.61 4.27 -2.77 4.53 1.21 0.87 -0.20 1.49 2.12 7.48 38.10

Fund Objective 2007 -0.47 0.41 5.10 -1.07 2.76 3.80 -0.07 -0.26 3.75 1.35 -0.64 3.41 19.34 2008 -5.77 4.87 -1.16 1.02 7.68 -5.25 -11.23 -10.65 The investment objective of the fund is to maximise absolute returns by Net Sector Allocation (% of NAV) investing both long and short in Value of $ 100 Invested at Inception Russian&CIS securities and securities outside of Russia or CIS but having $ 730 Oil significant economic or business 30.7% involvement with Russia and/or CIS. $ 650 SRAR Fund Gas $ 570 RTS Index 23.9% Cash Fund Size $119.0m $ 490 17.0% Launch Price $100 $ 410 Banks Launch Date 02/12/2002 11.8% Min. Investment $100.000 $ 330 Telecoms Subscriptions Monthly $ 250 7.5% Redemptions Monthly Consumer Goods Valuation Monthly $ 170 3.3% Domicile Bermuda $ 90 Utilities Charges 02/01/03 28/10/04 08/09/06 30/07/08 2.3% Other Management fee: 2.0% p.a. 2.2% Market and Portfolio Commentary Performance fee: 20% p.a. Metals 1.2% Prime Broker and Custodian Russian equities were pummeled last month by falling commodity prices, higher domestic inflation and a public rebuke by Prime Minister Putin of NYSE-listed Russian 0% 10% 20% 30% 40% Credit Suisse Securities coal miner, Mechel. The benchmark RTS Index drifted throughout the month and Security Type (% of NAV) (Europe) Limited closed 14.7% lower at the end of July as Russia`s myth of “safe haven” status was

dispelled. Over the month crude oil prices fell $17 a barrel on strong indications of Long Short demand destruction at higher levels; copper followed with a $400 per tonne fall and Investment Manager Equities 83.0 0.0 nickel dropped more than $3500 a tonne. Early in July Gazprom released results Bonds 0.0 0.0 Spectrum Investment Management which suggested its grip on costs had slipped, raising more general concerns that Futures 0.0 0.0 Limited margins in the sector were being squeezed. The Russian Oil and Gas RTS Index was

15.2% lower. Integrated steels and coal mining stocks in Russia weakened on slowing Δ-adjusted net long exposure 60.0 Investment Advisor US industrial demand and the possible introduction of a new export duty. In London`s courts, BP filed suit to recover $370m from its Russian partners, prompting Spectrum Capital Partners Limited Listings international investors to reassess the risks of investing in Russia. Moody`s upgrade Auditor of Russia`s sovereign rating to Baa1 was of little comfort. The fund was down 11.23% Bloomberg, Lipper, Morningstar, over the month. The managers took profits in options and net exposure of the fund Cogenthedge, Eurohedge, Eurekahedge PricewaterhouseCoopers, Bermuda was reduced to 60% by month-end.

Administrator Statistical Data Analysis since Inception* Contact

SRARF RTS Harbour Financial Services Limited, Marcuard Spectrum Ltd Total Return (since inception) 162.86% 445.10% Penny Cornell 52/4 Kosmodamianskaya Emb., Average Monthly Return 1.52% 2.91% 115054 Moscow, Russia Tel: (+1 441) 294 4676 Largest Monthly Return 11.28% 17.22% Return Fax:(+1 441) 294 8860 Largest Monthly Loss -11.23% -16.74% Telephone: +7 495 937 77 08, E-mail: [email protected] / % Winning Months 68.66% 65.67% Fax: +7 495 937 77 02 Sharpe Ratio (Rf = 5.50%) 1.02 1.01 [email protected] http://www.marcuardspectrum.com Sortino Ratio (MAR = 0.00%) 2.85 2.37 Email: [email protected] Standard Deviation (annual.) 11.50% 29.21% Listed: Irish Stock Exchange Risk Maximum Drawdown -15.89% -28.22%

ISIN BMG8339L1019 Months in Max. Drawdown 2 4 Months to Recover na 12 CUSIP G8339L101 Alpha 2.80% Bloomberg Ticker MRFSPEC BH Comparison Beta 0.34 to VALOR CH2470767 Correlation (R) 0.79

Sedol B39VCK8 R2 0.62 Benchmark

*Data Source: Reuters, RTS, Marcuard Spectrum Ltd.

This document is issued for information only by Marcuard Spectrum Ltd. and should not be used or relied on as an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorized. Such an offer will only be made by means of a private placement memorandum and related subscriptions documents. Each investor should carefully consider the risks associated with an investment in the shares before deciding to invest. Past performance is not necessarily a guide to future performance and the value of investment can deviate significantly. Investors may not get back the full amount originally invested. A comprehensive list of risk factors appears in the fund‘s placement memorandum and an investment should not be contemplated until the risks of investment have been considered fully.