Singapore (PRWEB) May 17, 2013
Political and legislative progress and renewed optimism is finally evident in Mongolia following over a year of populist domestic political posturing during which Mongolian asset prices plummeted.
The spring session of parliament recently opened with a speech from the President that highlighted the country’s democratic and free market values and included strong commentary on the importance of the country’s capital markets, stating that the country’s wealth should be managed through capital markets participation rather than Government ownership.
Travis Hamilton, Managing Director of Khan Investment Management, recently met with the Prime Minister as well as a number of key Ministers and other senior government officials. During his private meeting with the Prime Minister, His Excellency Altankhyug confirmed the Government’s support for the Oyu Tolgoi project as well as plans, now reality, to amend the Foreign Investment Law and provide investors with new incentives to reinvigorate confidence and capital flows into the country.
The Foreign Investment Law was recently amended and the government resolved to “intensify” development of Oyu Tolgoi (OT) in order to ensure the project meets planned commercial production in June. Following this decree, Mining Minister Gankhuyag, was tasked to urgently resolve all outstanding obstacles preventing timely production of OT. The previously proposed controversial draft minerals law introduced by Mongolia’s President has now been withdrawn. The Deputy Minister of Economic Development announced a new investment law designed to give investors more assurance about the rules governing their investments has been drafted and will be proposed in Parliament before the end of the spring session.
“The underlying concerns that previously threatened growth and investment are now clearly beginning to be resolved and Mongolia is implementing a more supportive operating environment. Whilst a number of investors remain side-lined in the lead up to the June Presidential elections, we believe that there exists an opportunity now to gain exposure to Mongolian stocks at deep discounts before this “non-event” comes and goes,” stated Mr. Hamilton.
A number of Mongolian brokerage houses and pundits have also recently called the bottom of the market. According to James Passin, Fund Manager and co-founder at Firebird Management, “compared to other emerging markets, Mongolia offers arguably the highest potential reward with the lowest risk right now – as all risks are known, are on the table and have been fully discounted in the market.”
“The investment opportunities and growth potential of Mongolia remains tremendous and we believe that there is a window of opportunity that currently exists for investors to acquire quality investment opportunities with outstanding long term potential,” said Hamilton.
Khan Investment Management Limited is a Cayman Island investment manager that provides global investors with access to a wide range of investment opportunities in fast growing Mongolia.
For further information please contact Travis Hamilton, Managing Director, Khan Investment Management Limited, travishamilton(at)khan-management(dot)com, +65 6502 6112