PRESENTATION

1. ESTABLISHING
CORPORATE PENSION
FUNDS IN MONGOLIA
MANDAL ASSET MANAGEMENT

2. WHY COMPANIES SHOULD
CONSIDER PENSION PLANS
 Major breakthrough in
corporate social
responsibility
 A vivid example of
contributing to the enhance
social security in a
systematic way
 A strong societal
impact, becoming a best
example of shared value
creation
 In the long run opportunity
to become a major
institutional player in the
financial markets
 Opportunity to use as partial
ESOProgram
 Employee social issues
resolved at once!
 Not one off
 Not singling out
 Boosted human resources
 New benefit package that
allows to attract and retain
staff long term
 Increased staff morale
 Employees will transform
into investors through
pension savings
 Improved public image
 Reduced pension debt
burden on the state
MANDAL ASSET MANAGEMENT

3. WHY MONGOLIANS NEED
CORPORATE PENSIONS
Social Security
Minimum pension
MNT 105’300, 56% of
pensioners receive
minimum pension
Average pension MNT
123’500
Minimum living
standard MNT 118’100
No other means
105
123 118
97
2011, thousand MNT
MANDAL ASSET MANAGEMENT

4. CAN YOU RELY ON
SOCIAL INSURANCE?
 Population aging is
underway, number of pensioners
is increasing, dependency ratio 4-
1, may turn 1-4
 Life expectancy rose from 63 in
2003 to 68 in 2010
 From 3 pillars of retirement
income only 1 exists
 Social Security pension fund is in
deficit
 It aims to provide only for basic
needs
 Social security is not
sustainable, as it is always in
deficit, and with population aging
pressure will rise even further
Retirement
income int’l
Saving
Corporate
pensions
Social
security
?
?
In Mongolia
Social
Security
MANDAL ASSET MANAGEMENT

5. PRIVATE PENSIONS:
WHERE WE ARE
 Policy framework for
2021 approved by the
Parliament states that
voluntary pension
schemes and additional
pillars of pension system
by private entities will be
encouraged by the state
 Weak regulatory
environment, most likely
to be subject to
supervision by FRC
 Private sector initiatives
exist, but all them use
different models
 Tax regulation is not
clear, while incentives are
needed for long term
saving
 Need to set industry
standards with regards to
practices, accounting, go
vernance
 Governance is key!
MANDAL ASSET MANAGEMENT

6. PRODUCTS AND SOLUTIONS
WE OFFER
 Stand alone corporate pension
plans for large corporations
 United Pension Fund
 Industry Funds
 Individual Accounts
 Consultancy
 Fund management services
(investment management)
 Fund administration services
(accounting, reporting)
 Registrar
 Defined contribution scheme
 Individual retirement account
 Contribution: as percentage of
salary
 Employer contributes
contribution as well as
employee
 Contributions pooled in the
Fund
 Investments will be made from
the Fund
 Benefit payouts: employee
contribution +employer
contribution + investment
return-fund operational
expenses
MANDAL ASSET MANAGEMENT

7. ABOUT US
MANDAL ASSET
MANAGEMENT
 AUM USD 30 mln
 Local partner of the global
hedge fund – Asia Frontier
Fund
 Launched and administers the
retail money market fund – the
First Investment Fund
 Champions establishment of
the United Pension
Fund, umbrella fund for the
Mongolian corporations in
association with the MNCCI.
 Manages pension funds of the
two Mongolian companies.
MANDAL ASSET MANAGEMENT
71%
18%
4%
7%
Portfolio
Real estate Money market
Stocks PE

8. TIME HAS COME!
An immediate answer
to so many pressing
issues
Equitable distribution
of wealth
Capital markets
development
Corporate governance
A great way to make
a difference and be
impactful at all levels:
personal, industry, so
cial, macro
A chance to prove
that you are here to
stay for long!
MANDAL ASSET MANAGEMENT

9. Contact us
Disclaimer
This is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor
may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. Whilst
every effort has been made to ensure its accuracy, UMC accepts no liability whatsoever for any direct or
consequential loss arising from its use.
 Phone: +976-70112606
 Web: http://www.umc.mn
 Address:
Seoul Street, Mandal Office
Ulaanbaatar, Mongolia
Person in charge:
BYAMBAA LOSOLSUREN
Partner
Email: byambaa@umc.mn
Tel: +976-9909-4223
MANDAL ASSET MANAGEMENT