Mongolia Investment Fund Could Break Under Electoral Pressure
- Amar Adiya
- 26 minutes ago
- 3 min read
Mongolia wants international capital without surrendering state control. Franklin Templeton must maximize returns for private shareholders. These mandates are structurally incompatible.
Prime Minister Nyam-Osoryn Uchral signed the partnership precisely because the fund-of-funds model allows Mongolia to raise capital from global equity markets without selling direct shares in state-owned enterprises.
The government injects SOE stakes into an independently managed National Investment Fund, lists the fund (not the companies) on exchanges like London, and retains majority control of both the fund and its operating companies.
It worked in Romania's Fondul Proprietatea. It attracted international investors to Uzbekistan's NIF. The architecture is proven. What it exposes, however, is whether Uchral can tolerate what comes next.
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