FMG launches Mongolia fund

Emerging markets investment specialist FMG has unveiled a fund targeting Mongolia, which the asset manager claims is the fastest-growing market in the world.

The FMG Mongolia fund, which has a minimum investment of $10,000 (£6,270), will target the top 25 most-liquid companies on the Mongolian Stock Exchange.

In its launch portfolio, the fund’s five largest holdings are
drinks company APU, manufacturer Remicon, coal miners Sharyn Gol and Tavan Tolgoi, and confectionery company Talkh Chikher.

The fund’s sector allocation is 42% towards mining, 39% to consumer stocks and 10% to construction, in line with Mongolia’s three main industries. It also has a 5% weighting to real estate and a 4% position in financials.

Arild Johansen, partner at FMG, says: “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 asset manager also claims Mongolia’s economy is expected to grow by 23% to 26% this year. It also says the country could become the largest supplier of key commodities, driven by its deposits of coal, copper, gold, uranium, rare earth metals and iron ore.