Mirae Asset Emerging Bluechip Fund (MAEBF)

Transcription

1 Mirae Asset Emerging Bluechip Fund (MAEBF) (An Open Ended Equity Fund) Product Literature December 2014

2 MAEBF Our Goal Our endeavour has been to Spot the Potential of Emerging Companies and consistently outperform the benchmark across time frames/market cycles. - Mirae Asset Investment Team

3 MAEBF The Journey So Far MAEBF CNX Midcap S&P BSE Sensex Source: Bloomberg, 31 st December, 2014 The Scheme NAV and Benchmark index have been rebased to Rs.10/-. Past performance may or may not be sustained in future and is no guarantee of future results. The above chart shows performance since inception for Mirae Asset Emerging Bluechip Fund- Regular Plan - Growth Option.

4 INDEX Contents 1. Why Midcaps? 2. What is MAEBF? 3. Did we capture the opportunity? 4. What is Future for Midcaps? 5. Appendix

5 MAEBF - Product Note December 2014 Why Midcaps?

6 What are Midcaps? LARGE-CAPS MID-CAPS Today s Midcaps will be Tomorrow's large caps MATURITY SMALL-CAPS Yesterday s small caps are. GROWTH START UP

7 Jan-01 Oct-01 Jul-02 Apr-03 Jan-04 Oct-04 Jul-05 Apr-06 Jan-07 Oct-07 Jul-08 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 Oct-13 Jul-14 Have Midcaps outperformed? Year CNX Midcap Returns S&P CNX Nifty CNX Midcap Volatility S&P CNX Nifty % 72% 20% 20% % 9% 29% 28% % 38% 18% 18% % 41% 27% 26% % 55% 23% 25% % -52% 40% 44% % 76% 30% 35% % 18% 16% 16% % -25% 18% 21% % 28% 16% 15% % 6% 18% 18% % 31% 18% 13% 120, ,000 80,000 60,000 40,000 20,000 0 Value of Rs. 10,000 invested in CNX Midcap and Nifty on 1st Jan 2001, as on Dec 31, 2014 Nifty CNX midcap 109,638 66,034 Midcap Index has outperformed the Largecap Index in returns, inspite of lower volatility. Notes; 1. The Performance table above shows point to point performance for 1 year as on 31 st December. 2. Figures are rounded off till the nearest number 3. Source: Bloomberg: 31 st December, Past performance may or may not be sustained in future.

8 Why this Outperformance? Two-levers at work for high quality mid size businesses 1. High earning growth o Early stage opportunities provide higher growth rates o Most of the companies are Under-researched, hence Valuation Gap is huge o More entrepreneurial in approach 2. With size and growth (and improved liquidity), expansion in the PE multiple, helps in increase in market prices (Market Price = EPS * PE Multiple) Long term value creation tenets of high quality midcaps is intact, irrespective of market conditions Given the high potential growth opportunities in Midcaps, Mirae Asset Mutual Fund launched its midcap equity fund Mirae Asset Emerging Bluechip Fund (MAEBF) on 9th July, 2010

9 Wealth Creation through Midcaps Transition In Market Cap in Rs. Crores 9 th July, st December,2014 Tech Mahindra 9,636 61, % Increase 1,590 Amara Raja Batteries 14, % Increase 3,713 IPCA 9, % Increase 17,100 LUPIN 64, % Increase Source : Bloomberg 31 st December, The companies/sectors referred in this document are only for the purpose of explaining the concept of Mirae Asset Emerging Bluechip Fund and should not be construed as recommendations from Mirae Asset Global Investments (India) Pvt. Ltd. (Mirae Asset AMC)/ Mirae Asset Mutual Fund). The stocks indicated above are illustrative & may or may not form part of portfolio. Past Performance may or may not be sustained in future.

10 MAEBF - Product Note December 2014 What is MAEBF?

11 MAEBF - Investment Style Investment Style: Mirae Asset Emerging Bluechip Fund is a Midcap Fund which gives investors the opportunity to participate in the growth of emerging companies which may have the potential to be tomorrow's large caps. The portfolio has predominantly securities of companies (more than 65%) which are not part of the top 100 stocks by market capitalization and have market capitalization of at least Rs.100 Crores at the time of investment. Portfolio of solid businesses selected through Bottoms Up Stock Selection process that may perform creditably over the medium term

12 MAEBF - Stock Selection Process Intellect and thought leadership Good Corporate governance track record BUSINESS SELECTION MANAGEMENT Business with Scalability & Sustainable Competitive Advantages High ROI (Return on Investment), and thus free cash generation Strong Earnings Growth & Visibility VALUATION Seek for Price-Value gap Bias for reasonable Margin of Safety, which mitigates underlying risks (related to business, liquidity and volatility) PORTFOLIO

13 MAEBF - Product Note December 2014 Fund Performance - Did we Capture this opportunity?

14 MAEBF: Journey so far! MAEBF CNX Midcap S&P BSE Sensex Source: Bloomberg, 31 st December, 2014 The Scheme NAV and Benchmark index have been rebased to Rs. 10/-. Past performance may or may not be sustained in future and is no guarantee of future results. The above chart shows performance since inception for Mirae Asset Emerging Bluechip Fund- Regular Plan - Growth Option.

15 MAEBF - YoY Performance 100% 80% 85% 60% 56% 40% 46% 39% 25% 30% 20% 13% 7% 15% 9% 9% 0% -5% -20% -40% -16% -25% -31% CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 MAEBF CNX Midcap BSE S&P Sensex Source: Bloomberg, 31 st December, The aforesaid graph depicts absolute performance of the scheme for the calendar year. Past performances may or may not sustain in future and is no guarantee of future results. All the nos have been rounded off to the nearest value.

16 MAEBF - Lumpsum Report Card 90% 80% 84.62% MAEBF Returns (%) 30,000 MAIOF Returns INR 27,872 70% 25,000 60% 55.91% 20,000 50% 40% 45.56% 39.16% 15,000 15,159 15,420 30% 29.89% 25.07% 25.07% 10,000 20% 10% 8.61% 8.98% 9.73% 10.14% 5,000 0% -10% 31st December st December % 31st December st December st December st December 2012 Since Inception(CAGR)- 31st December 14 0 Since Inception - 31st December 14 (Value INR)* MAEBF CNX Midcap S&P BSE Sensex** MAEBF CNX Midcap S&P BSE Sensex** Source: Ace MF : 31 st December, 2014 Index Value of CNX Midcap is 12, and Index value of S&P BSE Sensex is 27, Date of Allotment: 4 th April, 2008; $ Refer the Disclaimer Page; ** Alternate Benchmark * Value of Investment of Rs. 10,000/- Invested in the Scheme. Past performances may or may not sustain in future.

17 MAEBF - SIP Report Card 140,000 MAIOF SIP Value 100% MAIOF SIP returns (%) 120, ,843 90% 80% 85.80% 100,000 70% 80,000 71,497 60% 50% 50.08% 59.00% 60,000 53,000 40% 36.30% 40,000 20,000 17,025 12,000 36,000 30% 20% 10% 20.36% 15.67% 31.03% 21.74% 27.40% 0 1 Year SIP 3 Year SIP Since Inception SIP 0% Since Inception SIP 3 Year SIP 1 Year SIP Total Amount Invested Mkt Value as of 30th December 2014 MAIOF CNX Mid-Cap S&P BSE Sensex Source: Ace MF : 31 st December, 2014 The returns are calculated by XIRR approach assuming investment of Rs 1000/- on the 1st working day of every month SIP Investment Date is taken as 1st working day of every Month. Past performances may or may not sustain in future.

18 MAEBF - Performance across Market Cycles The Bear Market (Nov-10 to Dec-11) MAEBF -19% CNX Midcap -36% S&P BSE Sensex -24% Returns calculated are in absolute terms MAEBF CNX Midcap S&P BSE Sensex Source: Data from ACE MF as of 31st December 2011 Past performance is no guarantee of future results

19 MAEBF - Performance across Market Cycles The Bull Market (Jun-13 to Dec-14) MAEBF 110% CNX Midcap 61% S&P BSE Sensex 40% Returns calculated are in absolute terms MAEBF CNX Midcap BSE Sensex Source: Data from ACE MF as of 31st December, 2014 Past performance is no guarantee of future results

20 MAEBF - Performance across Market Cycles The Range-Bound Market (Mar-12 to May-13) MAEBF 17% CNX Midcap 2% S&P BSE Sensex 12% Returns calculated are in absolute terms MAEBF CNX Midcap BSE Sensex Source: Data from ACE MF as of 31 st December, 2014 Past performance is no guarantee of future results

21 MAEBF - Consistent AUM growth AUM Growth in Rs. Crores Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Source: ACE MF, 31 st December, Past performance is no guarantee of future results Our AUM has grown consistently since the inception of the fund

22 MAEBF - Dividend History Record Date Rate of Dividend Face Value CUM NAV 8-Dec per Unit Mar per Unit Oct per Unit Past performances may or may not sustain in future. Pursuant to payment of dividend the NAV of the dividend option of the scheme will fall to the extent of pay out and statutory levy (if applicable)

23 MAEBF - High Portfolio Liquidity 58.47% % of Portfolio that can be liquidated 28.93% 12.60% <3 days 3-10 days >10 days MAEBF has a very good liquidity, which helps mitigate price shocks, reduces impact costs and allows faster rebalancing of portfolio. Note: Calculated on the basis of the number of days it would take to exit from stocks from MAEBF portfolio, assuming 25% of the 3 month average daily traded volume for each stock on the NSE/BSE can be transacted. (Source: BSE/NSE, Data from Bloomberg.), as on 31 st December, 2014.

24 MAEBF - Product Note December 2014 MARKET OUTLOOK

25 1. Earnings Growth: Key for market performance S&P BSE Sensex Earnings per Share FY14-17E: 20% CAGR 2,112 1,761 FY08-15: 8.4% CAGR 1,335 1,469 FY01-08: 21% CAGR ,024 1,118 1, FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 E FY16 E FY17 E Source: MOSL, December 2014 Post 8.2% CAGR earnings growth during FY08-14, there is revival in earnings growth (estimated 20% CAGR in FY14-17E). The strong earnings growth is expected to drive P/E ratings and markets.

26 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct Valuations: Reasonable CNX Midcap Price Book Ratio Source: Bloomberg, 31 st December, 2014 The markets still very attractive as the indices are trading close to their 8 year average, but still are way below their peak.

27 3. Markets do well when GDP grows CNX Midcap Index Levels GDP Levels Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 0 Source: Bloomberg, 31 st December, 2014 CNX Midcap GDP As growth starts to look up and earnings outlook will improve, the market may continue to perform well.

28 4. Impact of GDP and Earnings Growth on Markets Year GDP Growth Earnings Growth Sensex Return % -2.60% -14% % 14.10% 61% % % -21% % 6.60% -18% % 16.90% 4% % 20.60% 73% % 36.50% 13% % 27.70% 42% % 25.50% 47% % 19.00% 47% % 7.40% -52% % -1.90% 81% % 20.80% 17% % 11.00% -25% % 8.10% 26% % 7.50% 8% Source: MSCI, Datastream, Bloomberg. CSO and CITI Research The equity market has mostly done well when both the GDP growth and Earnings growth are robust. In the long run, one can reasonably expect average equity returns to at least track the nominal growth of the economy.

29 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec Why Midcaps may continue to Outperform? Yield in % 115 US $ per barrel Brent Crude Prices M CD Corporate Bonds ( 5 Years AAA) INR vs US Dollar The CD, Corporate Bond rates also have started moving down (banks have started cutting deposit rates as well), Oil Prices have corrected, the INR is stable. Generally midcaps always do well in falling Commodity price cycle, Stable Currency and falling interest rate regime, hence Midcaps might continue do well. Source for all graphs: Bloomberg, 31 st December, 2014

30 MAEBF - Product Note December 2014 Appendix

31 Fund Manager Biography Neelesh Surana, Head Equities Mirae Asset Global Investments Ltd. (India) Team: Investments Experience : 18 Years + Year Joined : 2008 Mr. Neelesh Surana is Head of Equities at Mirae Asset Global Investments (India) Pvt. Ltd. He joined Mirae Asset in 2008, and in his capacity as Head of Equities, Neelesh spearheads the equity research and investment function. He is responsible for the managing existing equity funds of Mirae Asset (India), as well as, providing research support for the global mandate. Key funds managed by him include Mirae Asset India Opportunities Fund, Mirae Asset Emerging Bluechip Fund, and Mirae Asset India China consumption fund. An engineering graduate with MBA in Finance, Neelesh has over 18 years of experience in equity research and portfolio management. Prior to Mirae, Neelesh has worked with IL&FS and ASK Investment Managers, where he was the Senior Portfolio Manager responsible for managing domestic International portfolios.

32 MAEBF - Fund Facts Investment Objective: To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of at least Rs.100 Crores at the time of investment. The Scheme does not guarantee or assure any returns. Inception Date : July 9, 2010 Benchmark : CNX Midcap Index Fund Manager : Mr. Neelesh Surana Investment Options : Regular with Growth and Dividend Options Minimum Investment: Lump Sum: 5,000/- (multiples of Re. 1/- thereafter) Systematic Investment Plan (SIP): Minimum 6 installments (monthly) Rs. 1000/- (multiples of Re.1/ - thereafter) Minimum 4 installments (quarterly) Rs. 1500/- (multiples of Re. 1/- thereafter) Investment Options : Entry load NA, Exit load- If redeemed within 6 months (182 days) from the date of allotment - 2%. If redeemed after 6 months (182 days) but within 1 year (365 days) from the date of allotment - 1%. If redeemed after 1 year (365 days) from the date of allotment - NIL.

33 Other Fund Performances Mirae Asset India Opportunities Fund is managed by Mr. Neelesh Surana and Mr. Sumit Agrawal Period NAV at the end of the peri Returns od (Rs. per unit) MAIOF S&P BSE 200 S&P BSE Sensex** 31st December st December % 35.47% 29.89% 31st December st December % 4.38% 8.98% 31st December st December % 30.98% 25.70% Since Inception(CAGR)- 31st December % 9.16% 9.04% Since Inception - 31st December 14 (Value INR)* ,029 18,056 17,923 Index Value ( 31st December, 2014) Index Value of S&P BSE 200 is 3, and Index value of S&P BSE Sensex is 27, Date of allotment 04-Apr-08 Scheme Benchmark BSE 200 Mirae Asset India China Consumption Fund is managed by Mr. Neelesh Surana, Mr. Sumit Agrawal (India portion) and Ms. Bharti Sawant (Overseas portion). Period NAV at the end of the period (Rs. per unit) Returns MAICCF Scheme Benchmark S&P BSE Sensex** 31st December st December % 24.70% 29.89% 31st December st December % 16.55% 8.98% 31st December st December % 32.64% 25.70% Since Inception(CAGR)- 31st December % 19.95% 10.14% Since Inception - 31st December 14 (Value INR)* ,029 19,820 14,382 Index Value ( 31st December, 2014) Index Value of benchmark is and Index value of S&P BSE Sensex is 27, Date of allotment 29-March 2011 Scheme Benchmark S&P India & China Weighted Index Source: Ace MF : 31 st December, 2014 $ Refer the Disclaimer Page **Alternate Benchmark; * Value of Investment of Rs. 10,000/- Invested in the Scheme. Past performances may or may not sustain in future.

34 Product Labeling Sr No Name Product label 1. Mirae Asset Emerging Bluechip Fund This product is suitable for investors who are seeking long-term capital growth predominantly investments in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization Risk High (BROWN) 2. Mirae Asset India Opportunities Fund This product is suitable for investors who are seeking long-term capital growth Investments in equities, equity related securities Risk High (BROWN) 3. Mirae Asset India China Consumption Fund This product is suitable for investors who are seeking long-term capital growth Investment in equity and equity related securities of companies benefiting directly or indirectly from consumption led demand in India/ China Risk High (BROWN) *Investors should consult their financial advisers if they are not clear about the suitability of the product. (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand their principal will be at medium risk (BROWN) investors understand their principal will be at high risk

35 Disclaimer Note : $ For computation of since inception returns (%) the allotment NAV has been taken as Rs In case, the start/end date of the concerned period is a nonbusiness date (NBD), the NAV of the previous date is considered for computation of returns. Returns (%) for less than 1 year calculated on simple annualized basis. Load is not considered for computation of returns. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are for Regular Plan-Growth Option. CAGR Compounded Annualized Growth returns. *As per SEBI standard on performance disclosure, returns in INR terms based on a standard investment of Rs. 10,000/- have been shown only for Schemes that have been in existence for more than three years. NAV (per unit) is at the end of the period. **Alternate Scheme - Benchmark. Mirae Asset Emerging Bluechip Fund (MAEBF): (An open ended equity fund) Investment Objective: To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs. 100 Crores at the time of investment. From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal portfolio construction. The Scheme does not guarantee or assure any returns. Asset Allocation: (1) Indian Equities and Equity Related Securities of companies, which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs.100 Crores at the time of investment: 65%-100% (2) Other Indian Equities and Equity Related Securities: 0%-35%; Money market instruments / debt securities Instruments (Including up to 20% of corpus in securitized debt): 0%-35%.Transparancy: The NAV will be calculated at the close of every working day and shall be published in two daily newspapers and on the AMC & AMFI website. Load Structure : Entry Load: Not Applicable. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors assessment of various factors including the service rendered by the distributor. Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Global Investments (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited. Past performance of the Sponsor / AMC / Mutual Fund does not guarantee the future performance of the Schemes of Mirae Asset Mutual Fund. The past performance may not necessarily be an indication of future results and may not necessarily provide a basis for comparison with other investments. Investors in the scheme are not being offered any guaranteed / indicative/ assured returns. Certain information contained in this document is compiled from third party sources. Whilst Mirae Asset Global Investments (India) Private Limited has to the best of its endeavor ensured that such information is accurate, complete and up-to-date, and has taken care in accurately reproducing the information, it shall have no responsibility or liability whatsoever for the accuracy of such information or any use or reliance thereof.. The views expressed herein represents general market outlook and are not based on any assumptions/projections and purely represent the views of the author. This document shall not be deemed to constitute any offer to sell the schemes of Mirae Asset Mutual Fund. Mirae Asset Global Investments (India) Pvt. Ltd/ Mirae Asset Trustee Co. Pvt. Ltd./ Mirae Asset Mutual Fund/ its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the unauthorized use of this document. References to particular sectors, securities or companies are for general information only and are not recommendations to buy or sell a security, or may be a part of author s holdings/ portfolios (subject to change without any intimation) of the schemes of Mirae Asset Mutual Fund at any one time. The data mentioned are as on December 31, MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.