Government of Mongolia Signs Memorandum of Understanding with Franklin Templeton

ULAANBAATAR, MONGOLIA — B. Enkhbayar, Minister of Mongolia and Chief Cabinet Secretary, has signed a Memorandum of Understanding (MoU) with representatives of Franklin Templeton—one of the world's premier investment management firms—within the framework of advancing state-owned enterprise (SOE) policy reform.

This MoU aligns with the Government’s "Unlock" initiative, which aims to elevate the governance, transparency, and profitability of SOEs to meet international standards. Under this agreement, the parties will jointly explore the feasibility of consolidating a specific portion of SOE shares into an investment fund and subsequently offering these equity units to professional investors via domestic and international stock exchanges.

Following the Cabinet meeting on June 10, 2026, which reviewed the proposal to establish a National Investment Fund, a dedicated Working Group was formed. Comprising representatives from the Ministry of Finance, the Cabinet Secretariat, the State Procurement and Property Agency, and the Chinggis Khaan Sovereign Wealth Fund Holding, the group has commenced a preliminary analysis of the current state of SOEs, their potential for international market entry, and strategic implementation models.

The Government intends to evaluate and rank SOEs using international methodologies, seeking to improve their governance, financial health, and operational readiness before exploring opportunities to bundle and list them on domestic and global capital markets. Within this framework, both parties will exchange information and conduct joint research focusing on SOE valuation and ranking, public securities offering preparations, governance reforms, investor demand analysis, the potential structuring of the National Investment Fund, and the implementation roadmap.

Franklin Templeton is a globally recognized investment management firm operating in over 30 countries with more than 75 years of investment experience and approximately 1,300 investment professionals worldwide. As of May 31, 2026, the firm manages $1.78 trillion in assets. Notably, Franklin Templeton has proven expertise in preparing SOE portfolios for capital markets, enhancing corporate governance, and attracting international investments in markets such as Romania and the Republic of Uzbekistan.

The Government aims to finalize a viable roadmap to launch the first portfolio of securities on international capital markets by the end of 2027. This initiative is of paramount importance as it seeks to maximize the value of state assets, elevate SOE governance, accelerate capital market development, and establish a robust new channel for long-term foreign investment into Mongolia.

The team of professional analysts at the Chinggis Khaan Sovereign Wealth Fund is actively supporting the Working Group. Their efforts are focused on localizing international asset management standards to sustainably enhance the governance, transparency, and profitability of Mongolia's strategically important state-owned enterprises.