Despite 2012 being a challenging year for investors in local and foreign listed Mongolian equities, the financial performance for local companies was quite good. Currently, many markets around the world are hitting multi year highs, while the MSE Top 20 recently touched a 26 month low, confounding Mongolia focused investors. Uncertainty around the Oyu Tolgoi (OT) Investment Agreement and other large projects has clearly spooked foreign investment, with FDI down by over 40% in 2012. It continues to be our belief that the issues surrounding OT will be resolved, allowing the Mongolian economy to get back on track. However, resolution may not occur until after the Presidential Election, which is due to take place in late June. Populous political rhetoric is already beginning and will no doubt get more intense, as the election looms. During this process, investors will not only be able to buy local stocks at dirt cheap prices, but should also find pockets of liquidity, which is typically illusive.