BNP Paribas Securities is set to launch an emerging market fund in Mongolia, making it the first global custodian to support foreign investments in the country. 

Harvest Global Investments, the second largest asset manager in China with $37 billion in assets under management, has chosen BNP as its custodian, fund administrator, transfer agent and register, in support of the firm's Asian Frontier Equity Fund. The new fund went live in late 2011. 

With this deal, Harvest becomes the first Chinese and first cross-border asset management firm to take direct investment exposure in the country, it said in a statement. BNP Paribas Securities Services provides custody through a trustee account opened at the Mongolian Securities Clearing House and Central Depository. 

The launch comes at an opportune time as the Asian Development Bank recently forecast that the Mongolian economy will grow by 8 per cent in 2012. As of 31 December 2011, the company has $5.9 trillion in assets under custody and $1.07 trillion in assets under administration.