FMG, a specialist in emerging markets investments, has launched a new investment fund with focus on Mongolia – the world’s fastest growing economy
Arild Johansen (pictured), FMG partner, says: “I am proud to announce the launch of our new Mongolia Fund. Most observers rank Mongolia as the fastest growing economy in the years to come. It has huge future revenues potential and is blessed with key resources for a hungry growing world, and cost advantage of being right next door to the largest commodity consumer of them all, China.”
The Fund mainly has exposure to domestically listed Mongolian companies on the Mongolian Stock Exchange (MSE). The Fund invests in various securities among the top 25 liquid names on the MSE. The main sectors of the Mongolian economy are the mining, consumer and construction. The world’s leading deposits of critical resources like coal, copper, gold, uranium, rare earth metals and iron are located in this Mongolia. It’s location right next to China and Russia for the ultimate access to the end-consumer is ideal.
The asset allocation of the fund breaks itself down into: Financials 4%, Real Estate 5%, Construction 10%, Consumer 39%, Mining 42%. The five largest holdings are APU, Remicon, Sharyn Gol, Tavan Tolgoi, Talkh Chikher.
The London Stock Exchange (LSE) has been hired to help upgrade the Mongolian stock exchange, which will meet the same standard as London in three years. The LSE anticipates that the domestic stock market will increase from approximately USD3bn to USD45bn within 10 years.