Gain Accessto a Wealth
of Resources
2018 FMG MONGOLIA FUND
The Opportunity
•Mongoliahastheworld’sleadingdepositsofcriticalresourcessuchascoal,copper,gold,uraniumandironore
•ThecountrybordersChinawhichimports90%ofMongolia’sminerals
•Roughly20%oflandthemasshasbeenexploredforcommodities
•Potentialtohavetheworld sfastestGDPgrowthoverthenext10years
•Mongolia’scurrentpositionhasbeencomparedtotheearlydaysofAustralia’sminingboom,oneofthegreatestnaturalresourceboomsinhistory
Source:WoldBank,CIAWorldFactBook,Bloomberg
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FMG MONGOLIA FUND
Geography and Demography
• Area:1.5mnkm2(19thintheworld)• Population:3mn• Density:1.7peopleperkm2(Leastdenseintheworld)• Capital:Ulaanbaatar,population1.3mn• Government:ParliamentaryRepublic• Demography:40%undertheageof14• Literacyrate:98%
“Mongolia exports significant amounts of coal and copper to its neighbors.”
Source:CIAWorldFactBook
CONTACTFUND TERMSTHE FUNDDID YOU KNOW?RISKSTOCK MARKETECONOMYFUNDAMENTALSGEOGRAPHYTHE OPPORTUNITY
FMG MONGOLIA FUND
•WithinMongolialietwooftheworld’slargestcopperandcokingcoalmineswithhugepotentialoutput
•MongoliaissaidtobesittingoncommoditydepositsworthanestimatedUS$2tn
•Thestockmarkethasbeenhardlynoticedbyforeigninvestors
•Stableparliamentarydemocracy
•Mongoliahasverylowtransportationcostscomparedtootherregionalcommodityproducers
“The world’s fastest growing economy with an abundance of natural resources”
Fundamentals
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FMG MONGOLIA FUND
Economy
•Theeconomyisforecasttodoubleevery5-6yearsfortheforeseeablefuture
•MiningisthekeydrivertoMongolia’seconomicgrowth
•InfrastructurebuildwillhaveapositiveeffectonGDPgrowthformanyyearstocome
•Copper,goldandcoaloutputestimatedtohavegrown46%,31%and17%respectivelyfrom2011-15
•Governmentdebtislowwhencomparedtodevelopedcountries
Source:Citigroup,ML,BDSec,BusinessMonitorInternational
GDP growth 1994-2014 (%)
14
12
10
8
6
4
2
01990 1995 2000 2005 2010 2015
CONTACTFUND TERMSTHE FUNDDID YOU KNOW?RISKSTOCK MARKETECONOMYFUNDAMENTALSGEOGRAPHYTHE OPPORTUNITY
FMG MONGOLIA FUND
Abundance of Resources
Actual/PlannedMineSites TurquoiseHillMines CenterraGold MongolianMining SouthgobiResources ProphecyCoal
MajorExplorationSites AspireMining HunnuCoal MongoliaEnergy PetroMatad
LargeStrategicDeposits
Asgat(Silver)
Burenkhaan(Phosphoryte)
Erdenet(Copper, Molybdenum)
UB(Gold)
Gurvan Bukaq(Uranium)
Turmurtein Ovoo(Zinc)
Baganuur(Brown Coal)
Shivee Ovoo(Brown Coal)
Tsagaan Suvarga(Copper, Molybdenum)
Oyu Tolgoi(Copper, Gold)
Tavan Tolgoi(Coking Coal)
Nariin Sukhait(Coal)“22% of the country’s vast land
mass is under license for mineral exploration, with some 3000 licenses having been issued”
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Stock Market
•TheMongoliaStockExchange(MSE)wasfoundedinJanuary1991
•TheMSElists200companieshoweveritstillhasoneoftheworld’slowestmarketcapitalizations
•MSEtradinghasbeenmodernizedthroughtheintroductionoftheLSEMillenniumITtradingsystem
•Thedraftsecuritieslawwhichallowsdoublelistingsonbothonshoreandoffshoreexchangeshasbeenratified
•TheMSETop20Indexisdiversifiedamongmultipleindustrysectorswhereminingandconsumerstocksarethemostprominent
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Risks
•Lowtradingvolumesandunderdevelopedcorporategovernance
•TheeconomyisheavilydependantonresourcesandChina’seconomicgrowth
•Mongoliaissusceptibletocommoditypricefluctuations
•Mongolia’seconomyishighlyconcentratedwithlittlediversification
CONTACTFUND TERMSTHE FUNDDID YOU KNOW?RISKSTOCK MARKETECONOMYFUNDAMENTALSGEOGRAPHYTHE OPPORTUNITY
FMG MONGOLIA FUND
Mongoliahastheoldestnationalparkintheworld.TheBogdKhan
nationalparkdatesitsoriginto1778
GenghisKhancouldnotreadorwrite,buthecommissionedthefirstMongolianwritingsystem-
theMongolianscriptTheminimum
wageinMongoliaisapproximatelyUS$150amonth
Ulaanbaataristheworld’scoldestcapital Youcouldfitthe
NetherlandsintoMongolia37timesbutatthesametimetheNetherland’sroadsystemis67timeslarger
thanMongolia’s
Did You Know…
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FMG MONGOLIA FUND
FMG Mongolia Fund
TheFMGMongoliaFundoffersexposuretooneofthe
world’smostresourcerichcountries.Theinvestment
objectiveistoachievelongtermcapitalgrowthby
investinginequitieslistedontheMongoliaStock
Exchangeaswellasoffshoretradedsecuritieswith
assetsinMongolia.Investmentsaremadewithfocus
onthemostliquidstockstradedinlocalcurrency.The
fundisactivelymanagedandafundamentalapproach
isutilizedcombinedwithalongtermquantitative
modeltodetermineallocations.Thefundhasaflexible
mandateandaimstocapturemarkettrendsandbe
activewithitscashallocation.Thefrontiernatureof
theinvestmentuniverseshouldovertimeresultinlow
correlationtoglobalequitymarkets.FMGconsiders
liquidityanintegralelementoftheportfoliomanagement
process.Theopportunisticnatureofthefundtargets
investorswithahigherrisk-rewardreturnprofile.
The Model At a Glance
•Determinestherateofaccelerationinanygivenmarket
•Forecaststurningpointsandlongtermdirectionofthemarkets
•Rateofchange2monthperiodvs.weightedrateofchangeoverlast4years
“Actively managed through a top-down global
economic and quantitative model, designed
to generate an optimized and well diversified
mix of the various asset classes”
CONTACTFUND TERMSTHE FUNDDID YOU KNOW?RISKSTOCK MARKETECONOMYFUNDAMENTALSGEOGRAPHYTHE OPPORTUNITY
FMG MONGOLIA FUND
CONTACTFUND TERMSTHE FUNDDID YOU KNOW?RISKSTOCK MARKETECONOMYFUNDAMENTALSGEOGRAPHYTHE OPPORTUNITY
Minimum Investment*ClassAandAL:USD10,000ClassB:USD100,000
CurrencyUSD
DealingMonthly
Subscription FeesClassAandB:Upto5%ClassAL:None
Annual Management FeeClassA:2%p.a.ClassB:1.5%p.a.
Performance FeeClassA:20%HWMClassB:10%HWM
Redemption FeesShareClassA:NoneShareClass(AL):Year1(5%),Year2(4%),Year3(3%),Year4(2%),Year5(1%),Year6(0%)
Fund LaunchJanuary2012
Subscription Notice Period2BusinessDays
Redemption Notice PeriodClassA:45CalendarDaysClassB:90CalendarDays
Share Classes & ISINClassA:BMG3032V4640ClassAL:BMG3032V8526ClassB:BMG3032V4723
AdministratorApexFundServices
AuditorsDeloitte
CustodianMongolianSecuritiesClearingHouse&CentralDepository
AuthorityBMA(BermudaMonetaryAuthority)
*Orequivalentamongsttheoptionslistedunder“Currencies”.TheminimumsmaynotapplytoOffshorePortfolioBondsand/orplatformswhichmayallowdowntotheequivalentofUS$1,000.
Notethatthisisamarketingdocument.Fordetaileddescriptionsofthetermsandconditions,includinginvestmentrestrictions,aswellasbriefdescriptionsofcertainrisksassociatedwithinvesting,pleaserefertothefund’sprospectusandofferingmemorandum.
FMG Mongolia Fund Terms
FMG MONGOLIA FUND
FMGFloor6,AirwaysHouse,GaietyLane
Sliema,SLM1549,MaltaReg.No.C44040
Tel:+35620141220email:[email protected]
www.fmgfunds.com
Disclaimer:FMG(MALTA)Ltd.(“FMG”) is licensedbytheMaltaFinancialServicesAuthority(“MFSA”)asacategory2InvestmentServicesProviderasprovidedintheInvestmentServicesActChapter370oftheLawsofMalta.FMGisauthorizedtoactasafullscopealternativeinvestmentfundmanager(“AIFM”)intermsofDirective2011/61/EUoftheEuropeanParliamentandoftheCouncilonalternativeinvestmentfundmanagers(“AIFMD”).Thissummaryisforinformationpurposesonlyanddoesnotconstituteanoffertosellorasolicitationtobuy.CitizensorresidentsoftheUnitedStatesandIndiamaynotinvestintheseFunds.AllFundsmaynotbemarketedtoSwisscitizensorresidentsexceptthoseconsideredas“regulatedqualifiedinvestors”bytheSwissCollectiveInvestmentSchemesActandtheSwissCollectiveInvestmentSchemesOrdinance.AllFundsarenottobemarketedtoEUorEEAinvestors.Investorswhowish toobtain informationon these fundswillonlybeprovidedanysuchmaterialsupon receiptofanappropriate reversesolicitationrequestinaccordancewiththerequirementsoftheEUAIFMDirective,SwissLawand/ornationallawintheirhomejurisdiction.Opinionsandestimates
constitutethemanager’sjudgmentandaresubjecttochangewithoutnotice.Pastperformanceisnotindicativeoffutureresults.InvestmentsinEmergingMarketsshouldbeconsideredhighriskwhereaportionortotallossofcapitalisconceivable.Noassurancecanbegiventhattheinvestmentobjectivewillbeachievedorthataninvestorwillreceiveareturnofallorpartofhis/herinitialcapital,andinvestmentresultscanfluctuatesubstantiallyoveranygiventimeperiod.Pleaserefertotherelativefund’sprospectuswhichcontainsbriefdescriptionsofcertainrisksassociatedwithinvestinginthefund.FMGfundsorthird-partyfundsmarketedbyFMGareaimedatexperiencedinvestorsandyouhavetoensureyouareabletoinvestinsuchfunds.Questionsshouldbedirectedtoyourlocalrepresentativeorfinancialadvisor.Thisdocumentmaynotbereproduced,distributed,orpublishedforanypurposewithoutthepriorwrittenconsentofthemanager.AllinformationcontainedinthiscommunicationisasprovidedbyFMG(MALTA)Ltd.Copyright(C)2018FMG.Allrightsreserved.TAG2017138
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