gain access to a wealth of resources - fmg funds · fmg mongolia fund the fmg mongolia fund offers...

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

CONTACTFUND TERMSTHE FUNDDID YOU KNOW?RISKSTOCK MARKETECONOMYFUNDAMENTALSGEOGRAPHYTHE OPPORTUNITY

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


FMG MONGOLIA FUND

•WithinMongolialietwooftheworld’slargestcopperandcokingcoalmineswithhugepotentialoutput

•MongoliaissaidtobesittingoncommoditydepositsworthanestimatedUS$2tn

•Thestockmarkethasbeenhardlynoticedbyforeigninvestors

•Stableparliamentarydemocracy

•Mongoliahasverylowtransportationcostscomparedtootherregionalcommodityproducers

“The world’s fastest growing economy with an abundance of natural resources”

Fundamentals


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


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”


FMG MONGOLIA FUND

Stock Market

•TheMongoliaStockExchange(MSE)wasfoundedinJanuary1991

•TheMSElists200companieshoweveritstillhasoneoftheworld’slowestmarketcapitalizations

•MSEtradinghasbeenmodernizedthroughtheintroductionoftheLSEMillenniumITtradingsystem

•Thedraftsecuritieslawwhichallowsdoublelistingsonbothonshoreandoffshoreexchangeshasbeenratified

•TheMSETop20Indexisdiversifiedamongmultipleindustrysectorswhereminingandconsumerstocksarethemostprominent


FMG MONGOLIA FUND

Risks

•Lowtradingvolumesandunderdevelopedcorporategovernance

•TheeconomyisheavilydependantonresourcesandChina’seconomicgrowth

•Mongoliaissusceptibletocommoditypricefluctuations

•Mongolia’seconomyishighlyconcentratedwithlittlediversification


FMG MONGOLIA FUND

Mongoliahastheoldestnationalparkintheworld.TheBogdKhan

nationalparkdatesitsoriginto1778

GenghisKhancouldnotreadorwrite,buthecommissionedthefirstMongolianwritingsystem-

theMongolianscriptTheminimum

wageinMongoliaisapproximatelyUS$150amonth

Ulaanbaataristheworld’scoldestcapital Youcouldfitthe

NetherlandsintoMongolia37timesbutatthesametimetheNetherland’sroadsystemis67timeslarger

thanMongolia’s

Did You Know…


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”


FMG MONGOLIA FUND


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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