Twenty Ten: Prospects for 'Russia and Frontier Europe'

NEW YORK, Jan. 12 /PRNewswire-FirstCall/ -- John T. Connor, Jr., Portfolio Manager of the Third Millennium Russia Fund (TMRFX), number 3 performing fund for the past 10 years stated that, "This past decade saw four out of the top five US mutual funds focused on Russia." He noted that, while Americans continue to place only 3% of Assets Under Management into Emerging Markets, and that since December 31, 1999, the S&P 500 Index lost 23 %, while the Micex in Russia was up 694%, the Ukraine PFTS Index was up 901%, Romania's BET 537%, Slovakia's SAX 443% and Estonia's OMX 378%.

"The markets in Russia and Frontier Europe continue to be cheap. On a 12-month forward P/E basis, Russia's P/E is 9.3 versus 12.7 for the EM average, 13.1 for the BRICs and 14.2 for the US," Connor stated. "With lower inflation, economic recovery – in the 3-4% growth range – and continued ruble appreciation, along with strengthening US-Russia political co-operation, we may see some of that fact 'Russia Risk' discounts abate, which would be another positive."

Connor sees continued growth in steel, commodities in general and the consumer sector, as well as added strength in oil & gas sectors. "In just the past five years, emerging markets' economies have increased their share of global output from one-fifth to almost a third," Connor noted. "American equity investors – or certainly their intermediaries – are conservative, but they should recognize that accelerating the offshore, shifts in world market cap…and because, fundamentally, those economies are growing three times faster than ours. Russia's reserves, for example, are #3 in the world due to the strengthening of their national balance sheets."

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.  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.thirdmillenniumrussiafund.com, or call 1-800-527-9525.

SOURCE Third Millennium Russia Fund