BIN BANK Expands Sectoral Index Funds

On the first day of February, 2008 Managing company of B.I.N.BANK started to form 2 new sectoral index funds: Open index unit investment fund "B.I.N.BANK "Russian Trading System Index – Oil & Gas"* and Open index unit investment fund "B.I.N.BANK Russian Trading System Index – Electric Utilities".

The formation of these funds will end on April 30th, 2008 or earlier, when the cost of assets reaches 10 mln rubles. Till the end of forming of the open index unit investment fund "B.I.N.BANK Russian Trading System Index – Electric Utilities", issuing of an investment unit is carried out to the amount of 30 rubles, and concerning open index unit investment fund "B.I.N.BANK Russian Trading System Index – Oil & Gas"- to the amount of 1000 rubles.

The appearance of new sectoral index funds is conditioned by the expansion of the range of investment products of Managing company of B.I.N.BANK. At present, there has already been formed the first in Russia open sectoral index fund "B.I.N.BANK "Russian Trading System Index – Metals & Mining", which net asset value equaled 14,53 mln rubles as of December 29th, 2007.

OJSC "Russian Trading System" Stock Exchange" publishes 7 Russian Trading SystemSectoral indices, calculated in real-time mode:

RTSog - Russian Trading System Index – OIL & Gas

RTScr - Russian Trading System Index – Consumer & Retail

RTSmm - Russian Trading System Index – Metals & Mining

RTSin - Russian Trading System Index – Industrial

RTStl - Russian Trading System Index – Telecom

RTSeu - Russian Trading System Index – Electric Utilities

RTSfn - Russian Trading System Index - Financials

Executive Director of B.I.N.BANK managing company Ivan Deryabin comments: "The appearance of new sectoral funds is not occasional. There will be significant changes in the electric power industry in the nearest future – liquidation of RAO UESR and a beginning of new stages in the development of electric power market. We’d like our "B.I.N.BANK Russian Trading System Index – Electric Utilities" open index unit investment fund to become the benchmark, instead of RAO UESR, which soon will seize to exist. The fund will start its history from 30 ruble quotes, which approximately corresponds to the current cost of RAO UESR ordinary share. At present, the stocks of generation companies occupy big share in the "Russian Trading System Index – Electric Utilities" structure, but in the future, after consolidation of network companies and start of trading on OJSC HydroOGK shares, index dynamics will even better reflect the condition of electric power industry than RAO UESR does it now. The second fund, "B.I.N.BANK Russian
Trading System Index – Oil & Gas" appeared in the conditions of significant fall of Russian oil companies’ shares against the background of high prices on oil. In our opinion, such situation will allow unit fund buyers to obtain a good financial result from now on".

Index funds are very popular in the West. Their share is comparable with the share of actively managed funds. Analysis of western funds shows, that the passively managed funds (including index funds) bring in high yield to fund investors.

In the nearest time, Managing company of B.I.N.BANK plans to expand its own distribution network by registering all branches and additional offices of OJSC "B.I.N.BANK" as order taking agencies and agencies for settlement of trades on units in bank’s ATMs. -- www.rts.ru

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