Ashid Growth

Open-end mutual fund

Ashid Growth Fund is an open-end investment fund that aims to provide investment services to the public in an inclusive, simple, cheap and responsible way.

The fund is fully regulated and created by Ashid Asset Management company in accord to Mongolian Law of Investment, Securities market, Company. The fund is also closely monitored by the Financial Regulatory Commission of Mongolia in order to protect the interest of all investors.

Ashid Growth mutual fund is an open-end mutual fund so that the fund can issue fund units to new subscribers according to the demand and is subject to redeem fund units from unit holders.

Investment Policy Statement

You can view more details by clicking on each items.

Who is Ashid Growth open-end mutual fund for?

Ashid Growth open-end mutual fund is designed for those who wants:

Long-term capital appreciation

Highest risk-adjusted return

Open subscription

Open redemption

Why Ashid Growth fund?

Ashid Growth Fund is an open-end investment fund that aims to provide investment services to the public in an inclusive, simple, cheap and responsible way.

The fund is established by Ashid Asset Management LLC which is authorized and regulated by the Financial Regulatory Commission of Mongolia. Below are the advantages of open-end mutual fund.

Low cost

Costs such as trading fees, deductions, audits and legal services are at the lowest level.

Diversification of risk

Diversification by investing in a variety of securities, such as stocks and bonds to spread the risk.

Professional Management

Professional financial analysts and fund managers will execute all the challenging tasks such as researching capital market and companies, and building a diversified portfolio for the fund.

Simple

If you have thoroughly read the fund’s investment policy and strategy and decided to invest in the fund, there is no need to worry about many other things.

Liquidity

The most beneficial feature of the mutual funds is that you can subscribe as much units as you want and redeem your units at any time you want. The fund is obliged to fulfill your redemption request at any given time according to fund’s policies.

Get more information

Fund prospectus

Short prospectus

Giveaway

It is not enough to save, invest to earn more!

Are you ready to start?

ashidasset-client-3

Investment objectives

Ashid Growth is a fully regulated open-end mutual investment fund managed by Ashid Asset Management SC LLC.

The Fund seeks to provide an inclusive way to achieve long-term capital appreciation while generating short-term cash flows by building a diversified portfolio with the highest risk-adjusted return.

Investment Strategy

The fund uses a combination of growth and income investing strategies. In this way, unit holders capital will grow steadily in the long term, and they will be to receive regular income without withdrawing their investment in the short term.

In terms of growth strategy, up to 70% of the funds managed by the fund will be diversified into stocks of companies that are listed on domestic and foreign stock exchanges, have the highest risk-adjusted returns, have growth potential above the market average. have stable operating income, and well-known in the market.

Investing in foreign markets is aimed at hedging domestic market risks and benefiting from the growth of leading companies pioneering material and technological development, so blue-chip stocks that distribute dividends and have a good market value and reputation are selected. The investment amount could be up to 30 percent of the fund’s assets under management.

As a fixed-income strategy, the fund will invest 20-30% of its assets under management in government, municipal, and corporate bonds with low risk, high liquidity, and fixed yield.

The fund is open-ended or has an obligation to buy back its units; 10% of the fund’s managed assets are invested in cash and bank term deposits to meet the fund’s liquidity and unit buyback requests.

Investment Instruments
Strategy
Percentage in fund’s asset
Market
Stocks of companies
Growth investing
<=70%
Domestic and Foreign
Bonds
Income investing
<=20%
Domestic
Cash and savings
Income investing
<=10%
Domestic

Model portfolio

The Fund will create a highly diversified portfolio using Modern Portfolio Theory, and aim to have the highest Sharpe ratio.

According to regulation, mutual funds shall not invest more than 70% of their assets in equity and not more than 25% of their assets shall not be in a single economic industry. Thus, the Fund will invest 70% of its assets in equity, 20% of its assets in fixed income instruments, and 10% of its assets in money market instruments. Instruments in the model portfolio are as diversified as shown below in table 1.

Investment instruments
Proportion of the Fund
Annual return
Financial industry
25%
31.9%
Food and agriculture industry
20%
23.3%
Other industry
15%
20.3%
International technology sector
10%
24.0%
Bonds, Asset-backed securities
20%
15.0%
Short-term savings
8%
6.7%
Certificate of Deposits
2%
3.0%

Expected return

As per the Fund’s model portfolio, the Fund is expected to generate a total return of 21.7% annually before tax and expenses. Price returns and dividend figures used in portfolio calculation are derived from the last 5 and 10 years’ historical data of MSE, after adjusting for some abnormally high growth.

Please keep in mind that the Fund’s expected performance does not guarantee that the Fund will perform as expected in the future. Taking into account market risks, policy rates and economic conditions, we set the fund’s hurdle rate at 15% percent. The Asset management company will be able to receive an incentive fee if the fund’s performance exceeds the hurdle rate.

The Fund’s unit price is initially offered at 100MNT and is expected to be 378MNT at the end of 2031, when the Fund matures, meaning that the Fund’s 10-year compounding annual growth rate would be slightly higher than 15%.

Principal risk

An investment in the Fund could lose money over short or long periods of time. You should expect the Fund’s unit price and total return to fluctuate within a wide range. The Fund is subject to the following risks, which could affect the Fund’s performance:

Stock market risk, which is the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. The Fund’s investments in domestic stocks can be riskier than foreign stock investments. Domestic stocks may be more volatile and less liquid than foreign stocks.

Country/regional risk, which is the chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries or regions. Because the Fund may invest a portion of its assets in securities of companies located in any one country or region, the Fund’s performance may be hurt a bit by the poor performance of its investments in that area.

Emerging markets risk, which is the chance that the stocks of companies located in emerging markets will be substantially more volatile, and substantially less liquid, than the stocks of companies located in more developed foreign markets because, among other factors, emerging markets can have greater custodial and operational risks; less developed legal, tax, regulatory, financial reporting, accounting, and recordkeeping systems; and greater political, social, and economic instability than developed markets. As Mongolia is an emerging market, the Fund is subject to this kind of risk.

Currency risk is the chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavourable changes in currency exchange rates. Currency risk is especially high in emerging markets.

Manager risk, which is the chance that poor security selection will cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective. In addition, significant investment in the consumer discretionary sector subjects the Fund to proportionately higher exposure to the risks of this sector.

An investment in the fund is not a deposit of a bank and is not insured or guaranteed by any other government agency.

Ногдол ашгийн бодлого

Сангийн нэгж эрх эзэмшигчдэд ногдол ашиг хуваарилах шийдвэрийг Компанийн тухай хууль, Үнэт цаасны зах зээлийн тухай хууль, Хөрөнгө оруулалтын сангийн тухай хууль, сангийн дүрэм болон бусад холбогдох журмын дагуу сангийн ТУЗ гаргах болно. Сан үйл ажиллагаа явуулах хугацаандаа жил бүрийн цэвэр ашгийн тодорхой хувийг сангийн нэгж эрх эзэмшигчдэд ногдол ашиг болгон хуваарилж болох бөгөөд уг шийдвэрийг сангийн ТУЗ гаргана.

Сангийн ТУЗ нь санхүүгийн жил дууссанаас 50 хоногийн дотор ногдол ашиг хуваарилах эсэх талаар хэлэлцэн шийдвэрлэх ба ингэхдээ ногдол ашгийг сангийн татвар төлсний дараах цэвэр ашгаас хуваарилна. ТУЗ нь дор дурдсан нөхцөл, шаардлагыг хангаж байгаа тохиолдолд Нэгж эрх эзэмшигчдэд ногдол ашиг хуваарилна. Үүнд:

Tumenbayar Shuuraa

Board Chairman

 CEO of Four Seasons Green House LLC. He has 15 years of experience as a supervisor on economic and public policy in public and private organizations such as the Financial Regulatory Commission, the Development Bank, and DBM Asset Management. He graduated from MGIMO University in Russia in 2006 with a bachelor’s degree in economics and a master’s degree in public policy from Hitotsubashi University in Japan.

Batpurev Ayushsuren

Board member

Partner and CEO of Ashid Asset Management AMC, Inforum Consulting, SHIMT Education, and an independent member of the Board of Directors of the Mongolian Stock Exchange, and a founding member of the Financial Inclusion and Development Initiative NGO. He has more than 20 years of experience in public and private sector organizations such as the Ministry of Foreign Affairs of Mongolia, the Financial Regulatory Commission, Unitel Group, and Skytel Group. As an economist, he specializes in financial sector development, public finance, and revenue management, and as a business consultant, he specializes in strategic management and marketing. Graduated from the Institute of Finance and Economics in 2004 with a Bachelor of Business Administration (BBA), from the University of Sydney in 2013 with a Master’s degree in Financial Economics (Ms.Econ). He is currently studying Ph.D. in Business Economics from the University of Economics and Business in China from 2019.

Enkhbayar Boldbaatar

Board member

Private financial advisor. He has more then 20 years of experience of executive and advisor in Bodi Group, Petrovis group, Golomt bank, European Bank for Reconstruction and Development and Unitel group. He graduated from the Institute of Finance and Economics in 2004 with a Bachelor of Business Administration (BBA). 

Erdenetsetseg Erdenebat

Board member

Since 2007, she has been working in the fields of investment, accounting, and finance in the banking and financial sectors, and is a financial specialist with a high level of knowledge of financial market policies and procedures. She graduated in 2007 with a BA in Accounting and Finance from Middlesex University, England, and in 2014 with a Master’s in Financial Management from the University of Central Queensland, Australia. Simultaneously, she had experience working in the fields of BONs, green and climate finance, JMT, and social innovation.

 

Ganbold Zambal

Board member

Since 2009, he has been working as a system specialist at “Oyu Tolgoi” LLC. He graduated from the National University of Mongolia in 2003 with a bachelor’s degree in software engineering. It is a suitable person prescribed by law, with a certificate of corporate governance.

Batgarig Bat-Erdene

Fund manager

Financial analyst and economist, CFA level II candidate. Portfolio manager at Ashid Asset Management AMC. He has worked as a financial manager in business organizations and on projects of the European Bank for Reconstruction and Development (EBRD). As a financial analyst, he specializes in investment portfolio management, risk management and corporate valuation. He is licensed to operate in the market and fully meet the requirements of a “qualified person” of the Financial Regulatory Commission.

Fees and expenses

Investment management service costs and custodian costs are assumed to be 2.2% and 0.8%, respectively, or in aggregate not to exceed 3.0% of the fund’s average annual assets.

The fund’s total expenses shall not exceed 5.0% of the fund’s average annual assets. For the reporting period, the additional expenses deemed necessary for the operation of the fund can be discussed and decided at the meeting of unit holders.

The following table describes the fees and expenses you may pay if you buy, hold, and sell shares of the fund.

Fees related to ownership of units
Primary trading
Secondary trading
Subscription fee
up to 2%
Dividend reinvestment fee
Redemption fee
2 – 4%
Account service fee per year
Related to fund activities
Total managed assets of the fund
Management Fee
2.20%
Incentive fee (charged on net growth over hurdle rate of 15%)
20%
Custodian fee
0.80%
Total Annual fund operating expenses
0.40%

Purchase and sale of fund units

As an investor, please contact the link and number below for more information when you subscribe or redeem fund units.

The minimum amount to invest in the fund for the first time is 200,000 MNT, while the minimum amount to add to your account is 5,000 MNT.

For more information on investing in the fund and withdrawing your investment, please refer to the prospectus of the fund’s units.

© 2022 Ашид ассет менежмент.
© Бүх Эрх Хуулиар Хамгаалагдсан.
© 2022 Ашид ассет менежмент.
© Бүх Эрх Хуулиар Хамгаалагдсан.