Erdenes Mongol Group to Fully Transition to Sovereign Wealth Fund Mandates and Reorganize as a Corporation

During its regular session today, the Cabinet of Mongolia made a landmark decision to fully transition the "Erdenes Mongol" group to the core functions outlined in the Sovereign Wealth Fund Law. Under this directive, the group will be restructured and officially reorganized as the "Chinggis Khaan Sovereign Wealth Fund Corporation."

Through this major transition, the entity will evolve from a traditional mining sector oversight and management body into a world-class professional financial institution. The newly formed Corporation will be responsible for state-owned asset management, strategic investments, wealth fund management, IPOs, and privatization efforts in alignment with international standards.

This restructuring is designed to optimize the asset management of state-owned mining companies, ensuring that the yields from Mongolia's natural resources are delivered to citizens more accessibly and with sustainable, long-term returns.

Following the decision, Ms. B. Temuulen, CEO of "Chinggis Khaan Sovereign Wealth Fund" LLC, provided the press with the following updates regarding the Wealth Fund.

"Chinggis Khaan Sovereign Wealth Fund" LLC has provided financial and professional support in the Government's ongoing negotiations with strategic deposit holders to ensure the implementation of the 2024 Sovereign Wealth Fund Law and to increase the Fund's capital sources.

The Sovereign Wealth Fund holds international accounts and is a registered member of the International Forum of Sovereign Wealth Funds (IFSWF). We have conducted foundational policy research to implement professional asset management guided by proper governance principles.

Out of over 100 wealth funds operating globally, we have established digital communications with about 20 of them at the executive and professional levels to adopt their best practices.

Since the Sovereign Wealth Fund Law was passed, the Future Heritage Fund has grown by an average of about 30 percent annually. Professional analysts are advising on how to manage these assets for maximum economic benefit, and we are providing the necessary professional support to ensure proper asset management.

We are also proactively organizing the logistical framework for how citizens will draw upon their Savings Fund accounts for housing, healthcare, and education financing starting in 2030.

Preliminary research has been completed on attracting capital to the Development Fund and refining new, market-based financial instruments to draw in foreign investment.

Moving forward, "Chinggis Khaan Sovereign Wealth Fund" LLC will merge with the "Erdenes Mongol" group to become the "Chinggis Khaan Sovereign Wealth Fund Corporation." We will work together to bring large-scale foreign investment into Mongolia's strategic projects, create new capital flows, and manage the Sovereign Wealth Fund with proper, transparent governance to grow its value and deliver real benefits to the citizens.