Quam's Potter sees `very big returns' from Mongolia
Simon Potter, the director at Quam Asset Management, talks about investment opportunities in Mongolia on Bloomberg Television's "On the Move Asia,” on Sept. 6.
Potter thinks Mongolia has long-run investment prospect, “It is an interesting place with growing opportunities.” Potter does not deny that Mongolia is market with some risks because of its political-sensitive nature. But when regarding the bigger return, “it is worthwhile to take on that kind of risk.” He said.
Quam has launched a fund to invest in Mongolia, and although Mongolia market is self-illiquid, Quam still own some equities and local currency of them.
Till now, Mongolia’s GDP grows 14% this year, and will be 8% growth next year by predicting. Russia and China are the two biggest neighbors to Mongolia, and the economic development of these two countries will have great impact on Mongolia also. About 85% of Mongolia’s exports are to China.
Mongolia has rich natural resources like copper, gold, silver, according to supply and demand theory, commodity price will go higher in next 20-30 years. On the other hand, Mongolia also imports some kind of commodities like coking coal, which amount is higher than any other country like China or Chili.
Compare to China, Mongolia is a significantly cheaper place and many infrastructures are being built now. In Potter’s point of view, he sees “very big returns” from that place.
-Quamnet/Wendy-
Potter thinks Mongolia has long-run investment prospect, “It is an interesting place with growing opportunities.” Potter does not deny that Mongolia is market with some risks because of its political-sensitive nature. But when regarding the bigger return, “it is worthwhile to take on that kind of risk.” He said.
Quam has launched a fund to invest in Mongolia, and although Mongolia market is self-illiquid, Quam still own some equities and local currency of them.
Till now, Mongolia’s GDP grows 14% this year, and will be 8% growth next year by predicting. Russia and China are the two biggest neighbors to Mongolia, and the economic development of these two countries will have great impact on Mongolia also. About 85% of Mongolia’s exports are to China.
Mongolia has rich natural resources like copper, gold, silver, according to supply and demand theory, commodity price will go higher in next 20-30 years. On the other hand, Mongolia also imports some kind of commodities like coking coal, which amount is higher than any other country like China or Chili.
Compare to China, Mongolia is a significantly cheaper place and many infrastructures are being built now. In Potter’s point of view, he sees “very big returns” from that place.
-Quamnet/Wendy-
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