Third Millennium Russia Fund Shares Insight on 2012 Prospects for Russian Stock Market

NEW YORK, Jan. 18, 2012 /PRNewswire/ -- Third Millennium Russia Fund (TMRF) portfolio manager, John Connor is calling investors' attention to the "solid prospects" for the Russian economy and stock market in 2012. "Even though the markets performed even worse in Brazil, India and China last year, the Russian market was down over 20% so that, today, the market P/E is about five, making it the cheapest in the emerging market space," Connor noted; "At current prices, Russian stocks are a bargain relative to their international peers."

He continued, "The economic fundamentals, in terms of low trade and budget deficits, central bank reserves and domestic inflation rate, continue strong and 4% GDP growth is again predicted. What actually happened last year was a giant sucking sound throughout the Emerging Markets as investors 'fled to quality' back to the US."

More Mainstream Russia. In December, after an 18-year tussle, Russia joined the World Trade Organization (WTO). Connor has repeatedly argued the benefits that will accrue to their economy as a result. Later this year, Russia will host APEC (Asia-Pacific Economic Co-operation) in the Russian Far East at Vladivostok's Russky Island where it is building an 1100 meter bridge. In 2014, Russia will host the Winter Olympics in Sochi on the Black Sea and, in 2018, the soccer World Cup.

"These vast infrastructure projects, including roads and airports, as well as stadia and hotels, offer investors some opportunities, but the leading near term opportunity is in the under-valued oil & gas sector," said Connor.

Rising Middle Class.  Although the Third Millennium Russia Fund (TMRFX – which has risen 5% Y-T-D), Connor acting as Portfolio Manager, is stressing O&G , he notes the overall positive impact of Russia's rapidly rising middle class for retail and other sectors. He referenced a Citi Bank report  issued this month estimating that between a third and one-half of the Russian population is now middle class: 82% own their own home (with little mortgage debt) and 55% of youths are graduating university, larger percentages than in the US.

Russia Discount. Political consciousness is also rising as seen by recent demonstrations following December's State Duma (parliamentary) elections. "We need to ensure that our economic transformation brings about the growth of the middle class-the standard bearer of democracy," said Vladimir Putin in 2007, as quoted in Mr. Connor's book OUT OF THE RED (John Wiley & Sons 2008, page 175). "If Mr. Putin heeds his own words and democratic practices become even more evident in Russia, hopefully this will greatly reduce the deep 'Russia discount' which investors currently suffer," concluded Connor, "and the Russian stock market will better reflect values relative to international peers.

About Third Millennium Russia Fund

Third Millennium Russia Fund (OTC: TMRFX) is an open-ended mutual fund focusing on the oil sector, commodities, consumer stocks and a broad selection of other audited, market leading public companies.  John Connor, the fund's manager has been involved in Russia for more than 30 years running an insurance company in Russia, acting as deputy director of the U.S. Commerce Department's Bureau of East-West Trade, and establishing and heading the Moscow office of the US-USSR Trade and Economic Council.  Mr. Connor is also the author of "Out of the Red: Investment and Capitalism in Russia," published in 2008. Third Millennium Russia Fund is available through TD Waterhouse and Charles Schwab & Company.  For more information on Third Millennium Russia Fund, visit their Web site at: www.worldfunds.com, or call 1-800-527-9525.

CONTACT:  Ivette Almeida, Grayling
Tel:  +1-646-284-9455 or +1-917-302-9946

SOURCE Third Millennium Russia Fund