Collective Investment Pension Scheme

Ashid Private Pension Scheme is an internationally established defined contribution accumulating fund model that undertakes long-term balanced growth investment strategy designed to improve the future financial security of employees by way of regular accumulation of funds into a voluntary collective pension scheme through payroll as well as defined contributions by the employer.



The main advantage of Ashid PPP is that the plan is voluntary basis for the employees of the participating companies and those employees who elect to part-take in the scheme can invest above and beyond the defined contribution target amount depending on his/her personal investment capacity and appetite. Additionally the fund will allow continued investment in the event of change in employment by unitholder(s) or alternatively he/she can cash out in accordance with the fund’s governing documents and subject to conditions imposed the employer or the participating company.


Since the primary goal of a pension scheme is to provide cumulative nest-egg at retirement, it is long term in nature therefore investment strategy is defined balanced growth or medium risk when it comes to investment choices and instruments.

  • The employee dedicates a certain percentage of his/her monthly salary into a personal custodian account for accumulation in lieu of authorized units in the fund.
  • The employee will have the option to increase the minimum percentage amount dedicated i.e top-up investment which can be revised annually.
  • Simultaneously, the employer will contribute to its employee’s personal account by depositing certain amount, usually a matching percentage or fixed amount depending on their internal policy regarding private pension scheme of its employees.
  • Custodian bank will maintain segregated account for every person that is member of the pension scheme for safekeeping.
  • Ashid Asset Management Company, as the especially licensed entity that is contracted under fiduciary agreement with the participating companies will manage the fund’s asset in accordance with the fund’s governing documents and investment mandate.
  • The Board of Directors (BOD) will be appointed to the special purpose company which is the legal vehicle of the fund under Securities Law of Mongolia.
  • The BOD’s primary remit is to govern the managers and advisors of the fund and to monitor its performance through fund’s adherence to its governing documents and implementation of policies and strategies.
  • The BOD will comprise of employee elected non-executive directors
  • The Custodian bank will ensure segregation of Fund’s asset from that of the Asset Management Company and provide accurate shareholding reports to unitholders in line with timely reconciliation of fund accounting i.e the net asset valuation.
  • The Financial Regulatory Commission, in its regulatory body capacity will regulate relevant policies and procedures at the same time monitor AMC’s adherence to the rules of the law including that of investment activities of the fund.
  • An employee will own his/ her personal savings including applicable returns made from fund’s investment and can expect it to be made available for withdrawal though redemption of units after certain period of time.
  • This period of time is automatically considered elapsed if the employee reaches retirement age.
  • In the event of premature resignation or loss of working capacity etc the employee will have set options available to him/ her in accordance with the provisions under which his/ her employer is participating in the fund including that of applicable adjustments to be made to the accumulated fund (employer contribution only) such as claw-back provisions due to termination of employment due to disciplinary action.

Advantages of Ashid PPP

Dual contribution
Benefit from an employee perspective since the employer shall contribute certain amounts at its own cost for all of its participating employees. The scheme will be a major human resource, talent retention mechanism for employers and most importantly will be a major support to the nation’s social welfare system that is been burden to state budget for a long time due to inefficiency and inadequacy.
Good Governance
Specialized legal and regulatory fund solutions, Licensed professional management services, Board of directors consisting of employer and employee representatives, Custodian bank that provides asset safekeeping and unit registration services
Simple & Accessible
Easy-to-navigate online platform, purpose-built investment solution with tailored information for every unitholder. Custodian and AMC will provide performance reports in real-time post NAV cut-off time.
In terms of period of deposit amount subject to annual revisions to potential top-up amount and in terms of investments whereby portfolio diversification will evolve under its balanced growth strategy. And when it comes to beneficiary of the plan in the event of fund maturity and/or non-retirement redemption.
Risk-reward ratio
The investment policy of the fund will not aim to earn maximum potential returns in any market environment but rather balanced growth of funds under management in any economic cycle but will target returns in excess inflation and average banking long term deposit rate. This will be achieved by majority investment grade holdings monitored under comprehensive risk control system with robust risk appetite tolerances.

Investment Policy


Ashid Balanced Growth Fund will put the interests of employees who are savings, manage assets at a professional level to ensure high risk-adjusted returns.


Fund’s expected annual return is 15% (policy rate + 3%)


Total expected return 270% for 20 years. / 712% for 30 years /

Investment Portfolio

Pursue a balanced growth strategy that consists of low-risk debt securities that generate fixed income, money market instruments and optimal investment options in stocks of companies with stable performance and potential for growth.

Investment Savings

Example: If an employee with a salary of ₮1.5 million and his employer save 4% that is ₮60,000 monthly in a fund, a total of ₮18 million will be formed in 25 years, but as a result of the compound return, the employee can have ₮98 million in his own account.

Employer's Benefit

  • A sustainable workforce
  • Productivity & work attitude will increase
  • Opportunity to attract and motivated best employee
  • Create high value at low cost
  • Opportunity to reward employees with tax-deductible expenses
  • Opportunity to attract domestic investment through the fund.
  • Solve social problems of employee’s families
  • Influence the society by leading the pension reform

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

Are you ready to start?