12th Sep 2011 07:00
12 September 2011
Origo launches Mongolia Fund
Origo Partners Plc ("Origo") is pleased to announce the formation of a new fund which will invest in Mongolia, the fastest growing economy in the world in the first half of this year, with growth of 14.1 per cent year on year.
The MSE (Mongolian Stock Exchange) Liquidity Fund ("The Fund") will, for the first time ever, provide investors with direct exposure through one product to:
·; The Mongolian Stock Exchange ("MSE") via investments in primarily the top ten traded companies listed on the MSE - the MSE was the World's best performing equity market in 2010 with an increase of 174 per cent1;
·; High interest savings deposit rates on offer at Mongolian commercial banks of up to 15 per cent; and
·; 100 per cent exposure to the Mongolian Tugrik, the second best performing currency against the USD in 2010, with a 13 per cent increase with further appreciation expected due to significant mining investment in the country.
The performance of the Mongolian economy has been primarily driven by the development of the country's vast and largely untapped reserves of bulk commodities and base metals comprising coal, iron ore, copper, gold and uranium. Moreover, it is expected that the MSE will move to electronic trading for international investors later this year resulting in further increased capital flows into the country.
The fund will be managed by Origo Asset Management Ltd, a subsidiary of Origo Partners Plc, with day to day activities carried out by Luke Leslie, Head of Mongolia and Mining Investments at Origo, and Eric Zurrin, CEO of ResCap, who both have a successful track record in investing in and advising Mongolian companies.
Administered by Apex Funds, the Fund will be open ended, have a minimum subscription threshold of $10,000 and is expected to begin trading in October 2011.
Commenting on today's announcement, Luke Leslie and Eric Zurrin, Managers of the Fund said:
"By capitalising on the significant growth opportunities in Mongolia and utilising 100 per cent exposure to the Mongolian Tugrik, the MSE Liquidity Fund will provide investors with exposure to diversified and liquid assets and operations in the world's most resource rich and fastest growing economy."
Chris Rynning, the CEO of Origo, added:
"Mongolia is set to continue profiting from its world class natural resource assets, and we are confident that the Fund will give investors attractive exposure to Mongolia in a way which has been previously unavailable."
1 In US$ terms.
For further information about Origo please visit www.origoplc.com or contact:
Origo Partners plc Chris Rynning Niklas Ponnert
|
+86 1390 124 6417
+86 1351 106 1672 |
MSE Liquidity Fund Luke Leslie
Eric Zurrin
|
+976 9999 8646
+976 9999 3356
|
Broker and Nominated Adviser: Liberum Capital Limited Simon Atkinson / Richard Bootle
| +44 (0)20 3100 2222 |
Public Relations: Aura Financial Andy Mills / Nina Legge/ Mike Bartlett | +44 (0)20 7321 0000 |
Notes to editors:
Origo Partners:
·; Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.
·; Based in Beijing, Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media.
·; Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.
·; Origo has a wholly-owned Mongolian subsidiary in Ulaanbaatar, providing corporate finance and advisory services to local investee and non-investee companies seeking to raise development funds and to assist portfolio companies in their development.
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