Annual Report

Transcription

1 Annual Report

2 Mutual Fund Annual Report Board of Direcrs Trustee Company Private Limited Mr. V. B. Haribhakti Mr. S. T. Gerela Mr. K. Ramasubramanian Mr. M. L. Soneji Chairman (Independent) Direcr (Independent) Direcr (Independent) Direcr (Independent) Global Investments (India) Private Limited (AMC) Mr. B. N. Chakraborty Direcr (Independent) Mr. Yogesh Chaddha Direcr (Independent) Mr. Jisang Yoo Direcr (Associate) & Chief Executive Officer Mr. Thomas Jefferson Park Direcr (Associate) Asset Management Company: Global Investments (India) Private Limited Registered & Corporate Office: Unit No.606, Windsor Building, Off. C.S.T. Road, Kalina, Santacruz (East), Mumbai Cusdians: Standard Chartered Bank Mahatma Gandhi Road, t, Mumbai Citibank Na Securities & Fund Services, Citi India, 3rd Floor, Trent House, Plot No.G-60, Bandra Kurla Complex, Bandra (East), Mumbai Sponsor: Global Investments Company Limited Registered office: East Tower 18F, CENTER 1, 67 Suha-dong, Jung-gu, Seoul, KOREA Statury Audir: Chokshi & Chokshi 15/17, Raghavji B Bldg., Gowalia Tank, Off. Kemps Corner, Mumbai Registrar & Transfer Agent: Karvy Computershare Private Limited Karvy Plaza; H. No , Avenue 4, Street No.1, Banjara Hills, Hyderabad Trustee: Trustee Company Private Limited Registered Office: Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East), Mumbai MIRAE ASSET MUTUAL FUND BRANCH OFFICES - Ahmedabad-107, 1 st Floor, Abhijeet I, Mithakhali Six Roads, Mithakhali Circle, Navrangpura, Near HDFC Bank, Ahmedabad Tel Asansol-M/s. Safe Savings, Street No.1, House No.2, Hindustan Park, Asansol Bangalore-Prestige Meridian-II, Flat No.308, 2 nd Floor, No.29, M. G. Road, Bangalore Tel Chennai-Premises No.206, Challa Mall, A, Sir Theyagaraya Road, T. Nagar, Chennai Tel Kanpur-1 st Floor, Shop No.111, KAN Chambers, 14/113, Civil Lines, Kanpur, Uttar Pradesh Tel Kolkata-Krishna Building, Room No.510, 5 th Floor, 224 A. J. C. Bose Road, Beck Bagan Junction, Kolkata Tel Mumbai (Corporate Office)-Unit No.606, 6 th Floor, Windsor Bldg., Off. CST Road, Kalina, Santacruz (E), Mumbai Tel New Delhi-Office No.1010, 10 th Floor, Indraprakash Building, 21 Barakhamaba Road, Connaught Place, New Delhi Tel Pune-74, C Wing, 4 th Floor, Sreenath Plaza, Dnyaneshwar Paduka Chowk, F. C. Road, Shivaji Nagar, Pune Tel

3 TRUSTEE REPORT OF MIRAE ASSET MUTUAL FUND FOR THE YEAR ENDED MARCH 31, Dear Unit holder, The Trustee Company presents its Seventh report and the audited financial statements of the Schemes of Mutual Fund (the Fund ), for the year ended March 31, MIRAE ASSET MUTUAL FUND As of March 31, 2014, Global Investments (India) Pvt. Ltd., Asset Management Company (the AMC) managed 9 schemes of Mutual Fund. The break-up being 4 open-ended equity schemes, 1 open-ended fund of funds scheme, 3 open-ended liquid/ debt schemes and 1 close ended debt scheme. Among the key achievements, Mutual Fund recorded an impressive growth of 50% in FY 14 with the Assets under management (AUM) growing from Rs crores Rs crores (as on 31 st March, 2014) against the backdrop of a very challenging business environment. The overall Mutual Fund Industry AUM grew by 10.8% during the same period. We have also seen some flows in our fixed income funds. We successfully launched our first fixed maturity plan, Fixed Maturity Plan - Series I days during the financial year FY14. The above incremental growth in assets has been driven by decent fund performance displayed by its equity schemes. The performance has been equally encouraging with our flagship equity scheme, India Opportunities Fund outperforming its benchmark S&P BSE 200 by 8.70% whilst Emerging Bluechip Fund outpacing its benchmark CNX Midcap by 18.98% during the same period. Both India Opportunities Fund and Emerging Bluechip Fund have received various recognitions from leading publications and rating agencies. Both the funds are on the verge of achieving important AUM milesnes, which will make them qualified be sold by many leading banks and wealth outfits. This will help in faster AUM growth in the next financial year. Our Invesr folio count currently stands at 56,806 (as on 31 st March, 2014) slightly lower than the 57,350 folios as on 31 st March SIP book stands at 16,098 accounts (as on 31 st March, 2014) with a 4.2% growth since March 2013 count of 15,444. The Fund house also declared dividends under its various equity schemes as highlighted below. It was the 5 th consecutive dividend in India Opportunities Fund (based on financial year). Fund Name Dividend Amount (Rs. per unit) Record Date India Opportunities Fund /01/2014 Emerging Bluechip Fund /03/2014 Past Performance is no guarantee of future results. Scheme Performance, Future Outlook and Operations of the Schemes 1. PERFORMANCE OF THE SCHEMES FOR THE PERIOD ENDED MARCH 31, (I) India Opportunities Fund (MAIOF), an open ended equity oriented scheme The investment objective of the scheme is generate long term capital appreciation by capitalizing on potential investment opportunities through predominantly investing in equities, equity related securities. There is no assurance or guarantee of returns. The fund investment philosophy is invest across secrs in quality companies which could deliver decent growth. The year was challenging for markets, and the fund focuses on botm up approach for sck picking help generate consistent outperformance over the benchmark. The investment strategy is focused on high quality businesses, which can withstand current domestic and global headwinds. The net assets of India Opportunities Fund sod at Rs Crores as at March 31, As at March 31, 2014, out of the tal net assets, 95.98% was invested in equity shares, 0.61% in mutual fund and balance in CBLO and others. Comparison of the performance of India Opportunities Fund with benchmark returns as on 31 st March, 2014:- Period NAV at the end of the period (Rs. per unit) Returns Value(INR) MAIOF BSE 200 Sensex** MAIOF BSE 200 Sensex** 31st March st March 2014& % 17.19% 18.85% 12,590 11,719 11,885 31st March st March 2013& % 6.03% 8.23% 10,832 10,603 10,823 31st March st March 2012& % -9.28% % 9,721 9,072 8,950 Since Inception (CAGR) - 31st March % 5.93% 6.51% 22,060 14,123 14,590 Index Value (31st March, 2014) Index Value of BSE 200 is 2, and Index value of Sensex is 22, Date of allotment 04-Apr-08 Scheme Benchmark BSE 200 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan Growth Option. 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. & represents absolute returns. ** represents Alternate Scheme Benchmark. 3

4 (ii) EMERGING BLUECHIP Fund (MAEBF), an open ended equity fund The fund investment philosophy is invest across secrs in high-quality scalable mid-sized companies which could deliver decent growth. The year was challenging for markets and the fund focuses on botm up approach for sck picking help generate consistent outperformance over the benchmark. The investment strategy is focused on high quality businesses, which can withstand current domestic and global headwinds. The net assets of Emerging Bluechip Fund sod at Rs Crores as at March 31, As at March 31, 2014, 94.04% of the net assets were invested in equity shares and balance in CBLO and others. Comparison of the performance of Emerging Bluechip Fund with benchmark returns as on 31 st March, 2014:- Period NAV at the end of the period (Rs. per unit) MAEBF Returns CNX Midcap Sensex** MAGCSF Value(INR) CNX Midcap Sensex** 31st March st March 2014& % 16.36% 18.85% 13,534 11,636 11,885 31st March st March 2013& % -4.02% 8.23% 10,962 9,598 10,823 31st March st March 2012& % -4.09% % 10,773 9,591 8,950 Since Inception (CAGR)- 31st March % 0.99% 6.29% 17,164 10,375 12,553 Index Value (31st March, 2014) Index Value of CNX Midcap is 8, and Index value of Sensex is 22, Date of allotment Scheme Benchmark 09-Jul-10 CNX Midcap Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & represents absolute returns. ** represents Alternate Scheme Benchmark. (III) INDIA-CHINA CONSUMPTION Fund (MAICCF), an open ended equity oriented scheme The objective of the fund is capitalize on long term secular theme related consumption trend in India and China. The focus has been on secular and scalable businesses which would benefit from changing demographics, rising aspiration and other consumption related themes. The net assets of India-China Consumption Fund sod at Rs Crores as at March 31, As at March 31, 2014, 96.47% of the net assets were invested in equity shares and balance in CBLO and others. Comparison of the performance of India-China Consumption Fund with benchmark returns as on 31 st March, 2014:- Return Value (INR) Period NAV at the end of the period (Rs. per unit) MAICCF S&P India & China Weighted Index Sensex** MACAF S&P India & China Weighted Index Sensex** 31st March st March 2014& % 23.86% 18.85% 12,473 12,386 11,885 31st March st March 2013& % 13.20% 8.23% 11,258 11,320 10,823 31st March st March 2012& % 12.52% % 10,902 11,252 8,950 Since Inception (CAGR)- 31st March % 16.98% 5.38% 15,402 16,029 11,708 Index Value (31st March, 2014) Index Value of benchmark is and Index value of Sensex is Date of allotment 29-March 2011 Scheme Benchmark S&P India & China Weighted Index Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & represents absolute returns. ** represents Alternate Scheme Benchmark. (iv) Global Commodity Scks Fund (MAGCSF), an open ended equity fund The investment objective of the scheme is generate long term capital appreciation through an actively managed portfolio investing in equity and equity related securities of companies that are engaged in commodity and commodities related secrs/sub secrs/ industries, with at least 65% of the corpus invested overseas in Asia Pacific and Emerging Markets. There is no assurance or guarantee of returns. The Fund offers invesrs access commodity as an asset class by way of investments in commodity scks of leading global companies involved directly or indirectly with the commodities business. The fund primarily invests in scks in Asia Pacific markets and emerging markets thus offering invesrs an avenue diversify beyond local boundaries. The net assets of Global Commodity Scks Fund sod at Rs Crores as at March 31, As at March 31, 2014, 98.35% of the net assets were invested in equity shares and balance in CBLO. 4

5 Comparison of the performance of Global Commodity Scks Fund with benchmark returns as on 31 st March, 2014:- Returns Value(INR) Period NAV at the end of the period (Rs. per unit) MAGCSF S&P Pan Asia Large Midcap Commodity & Resource Capped Index Sensex** MAGCSF S&P Pan Asia Large Midcap Commodity & Resource Capped Index Sensex** 31st March st March 2014& % % 18.85% 10,411 8,768 11,885 31st March st March 2013& % -5.02% 8.23% 9,552 9,498 10,823 31st March st March 2012& % % % 8,990 8,995 8,950 Since Inception (CAGR) - 31st March % 1.88% 7.81% 11,980 11,103 15,251 Index Value (31st March, 2014) Index Value of benchmark is and Index value of Sensex is 22, Date of allotment Scheme Benchmark 20-Aug-08 S&P Pan Asia Large Midcap Commodity & Resource Capped Index Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & - represents absolute returns. ** represents Alternate Scheme Benchmark. (V) CHINA ADVANTAGE Fund (MACAF), an open ended fund of funds scheme The investment objective of the scheme is generate long-term capital appreciation by investing predominantly in units of China Secr Leader Equity Fund and/or units of other mutual fund schemes, units of exchange traded schemes that focus on investing in equities and equity related securities of companies domiciled in or having their area of primary activity in China and Hong Kong. The Scheme may also invest a certain portion of its corpus in debt and money market securities and/or units of debt/ liquid schemes of Domestic Mutual Funds, in order meet liquidity requirements from time time. The Scheme does not guarantee or assure any returns. The fund gives invesrs an opportunity invest in China companies with high investment potential. The emphasis on market leaders gives the fund a bias wards large/mid-cap names. Fund is positioned take advantages of the growth opportunities related the secular and structural changes in China. The net assets of China Advantage Fund sod at Rs Crores as at March 31, As at March 31, 2014, 98.53% of the net assets were invested in equity shares and balance in CBLO and others. Comparison of the performance of China Advantage Fund with benchmark returns as on 31 st March, 2014:- Period NAV at the end of the period (Rs. per unit) Returns Value(INR) MACAF MSCI China (INR) Sensex** MACAF MSCI China (INR) Sensex** 31st March st March 2014& % 8.84% 18.85% 11,793 10,884 11,885 31st March st March 2013& % 10.50% 8.23% 10,801 11,050 10,823 31st March st March 2012& % -2.77% % 9,178 9,723 8,950 Since Inception (CAGR) - 31st March % 4.19% 7.83% 12,950 11,979 13,936 Index Value (31st March, 2014) Index value for benchmark is and Index value of Sensex is 22, Date of allotment Scheme Benchmark 5-Nov-09 MSCI China(INR) Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & - represents absolute returns. ** represents Alternate Scheme Benchmark. (VI) MIRAE ASSET CASH MANAGEMENT FUND (MACMF), an open ended liquid fund MACMF is an open ended liquid scheme. This scheme is meant for invesrs deploy their funds for a short period of time. The investment objective of the scheme is generate consistent returns with a high level of liquidity in a judicious portfolio mix comprising of money market and debt instruments. The Scheme does not guarantee any returns. The net assets of Cash Management Fund sod at Rs Crores as at March 31, As at March 31, 2014, 87.78% of the net assets were invested in money market and balance in CBLO and others. 5

6 Comparison of the performance of Cash Management Fund with benchmark returns as on 31 st March, 2014:- Period NAV at the end of the period (Rs. per unit) Returns MACMF CRISIL Liquid Fund Index Crisil 91 day T-Bill Last 7 Days till 31st March % 0.06% 0.07% Last 15 Days till 31st March % 0.33% 0.33% Last 30 Days till 31st March % 0.76% 0.68% 31st March st March 2014& % 9.25% 8.41% 31st March st March 2013& % 8.22% 8.50% 31st March st March 2012& % 8.47% 6.99% Since Inception(CAGR) - 31st March % 7.20% 6.04% Since Inception - 31st March 14 (Value INR)* , , , Index Value ( 31st March, 2014) Index Value of benchmark is 2, and Index value of Crisil 91 day T-Bill is 3, Date of allotment 12 January, 2009 Scheme Benchmark CRISIL Liquid Fund Index Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & - represents absolute returns. ** represents Alternate Scheme Benchmark. Note : Liquid Fund have been merged with Cash Management Fund vide SEBI s no objection letter No.OW/14398/2013 dated June 14, Liquid Fund has ceased exist and no fresh purchase/switch in applications will be accepted of Liquid Fund with effect from 31 st July, (VII) MIRAE ASSET ULTRA SHORT TERM BOND FUND (MAUSTBF), an open ended debt fund MAUSTBF is an open ended debt scheme. This scheme is meant for invesrs deploy their funds for a short period of time. The investment objective of the scheme is seek generate returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. The Scheme does not guarantee any returns. The net assets of Ultra Short Term Bond Fund sod at Rs crores as at March 31, As at March 31, 2014, % of the net assets were invested in money market instruments, 5.94% in mutual funds units and balance in CBLO and others. Comparison of the performance of Ultra Short Term Bond Fund with benchmark returns as on 31 st March, 2014:- Period NAV at the end of the period (Rs. per unit) MAUSTBF Returns CRISIL Liquid Fund Index Crisil 1 Year T-Bill 31st March st March 2014& % 9.25% 5.60% 31st March st March 2013& % 8.22% 8.37% 31st March st March 2012& % 8.47% 6.61% Since Inception (CAGR)- 31st March % 6.82% 5.29% Since Inception - 31st March 14 (Value INR)* , , , Index Value (31st March, 2014) Index Value of benchmark is 2, and Index value of Crisil 1 Year T-Bill is 3, Date of allotment 5th March, 2008 Scheme Benchmark CRISIL Liquid Fund Index Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & - represents absolute returns. ** represents Alternate Scheme Benchmark. (VIII) MIRAE ASSET SHORT TERM BOND FUND (MASTBF), an open ended debt fund MASTBF is an open ended debt scheme. The primary investment focus of the scheme is seek generate returns through an actively managed diversified portfolio of debt and money market instruments. The scheme does not guarantee any returns. The net assets of Short Term Bond Fund sod at Rs crores as at March 31, As at March 31, 2014, 85.26% of the net assets were invested in money market instruments, 12.51% in mutual funds units and balance in CBLO and others. 6

7 Comparison of the performance of Short Term Bond Fund with benchmark returns as on 31 st March, 2014:- Period NAV at the end of the period (Rs. per unit) Returns MASTBF CRISIL Short Term Bond Fund Index Crisil 1 Year T-Bill 31st March st March 2014& % 8.58% 5.60% 31st March st March 2013& % 9.10% 8.37% 31st March st March 2012& % 8.13% 6.61% Since Inception (CAGR)- 31st March % 6.18% -3.10% Since Inception - 31st March 14 (Value INR)* , , , Index Value (31st March, 2014) Index Value of benchmark is 2, and Index value of Crisil 1 Year T-Bill is 3, Date of allotment 3rd August, 2009 Scheme Benchmark CRISIL Short Term Bond Fund Index Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option. 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. & - represents absolute returns. ** represents Alternate Scheme Benchmark. (IX) MIRAE ASSET FIXED MATURITY PLAN - SERIES I DAYS (MAFMP - I - 368D), a close ended debt fund MAFMP - I - 368D is a close ended debt scheme. The investment objective of the Plans under the Scheme is generate income through investments in Debt and Money Market Instruments maturing on or before the maturity date of the respective Plan(s). The Scheme does not guarantee or assure any return. The net assets of Fixed Maturity Plan - Series I Days sod at Rs crores as at March 31, As at March 31, 2014, 99.98% of the net assets were invested in money market instruments and 0.02% in mutual funds units. 2. FUTURE OUTLOOK OF THE FUND AND OPERATIONS OF THE SCHEMES The Mutual Fund industry comprises of 46 mutual funds. The Mutual Fund Industry AAUM sod at Rs.905,120/- crores (as on 31st March, 2014), a growth of 10.8% from Rs.816,657/- crores as on 31st March The AUM grew with strong flows witnessed in Income Funds & FMP s. Mutual Fund recorded an impressive growth of 28% in FY 14. Mutual Fund has presently a tal of 9 schemes in its product basket with a mix of equity, liquid, debt and fund of funds schemes. funds have received various recognitions from leading publications and rating agencies. India has been on the forefront in terms of introducing differentiated products meet the asset allocation needs of its invesrs. We hope build on our existing product basket and offer more differentiated products in the coming years. We hope continue deliver superior risk adjusted returns invesrs and help create long term wealth. On the distribution front o, India has taken steps and has tied-up with some of the best names in the distribution domain. The fund house has ensured a prudent mix of distribution partners from IFAs (currently around 6,000 IFA distriburs empanelled), Banks and National distriburs. This has ensured that the distribution model is de-risked as well as equipped take advantages of market opportunities. We want the number cross 10,000 IFA s across various locations by the next financial year. Both our flagship funds India Opportunities Fund & Emerging Bluechip Fund are on the verge of achieving important AUM milesnes, which will make them qualified be sold by many leading banks and wealth outfits. This will help in faster AUM growth in the next financial year. Mutual Fund is working on leveraging its global presence raise funds from foreign invesrs in Funds and for providing advisory services. With our domestic funds exhibiting robust performance track record, Mutual Fund is trying get institutional mandates as well. India has been able turn challenges in opportunities and in this short time since inception has started making operating year year profits. As we embark our journey in the new fiscal, we aim at a high octane year of growth through a combination of unique products and superior performance for the invesrs. Our goal in the long term is become one of major players in the Indian Mutual Fund Industry with a complete product basket across asset classes and deliver superior risk adjusted returns our invesrs. INVESTOR SERVICES The Schemes of Mutual Fund have delivered reasonable adjusted returns invesrs. In our endeavor strengthen the services for invesr services provide them quality and timely service, we have redesign the website of Mutual Fund, make it more user friendly, ease navigate and provides huge knowledge content on markets and financial terms. We have strengthen our Online services and make transacting with us a seamless process allowing the invesrs transact in our funds through our website in a seamless manner. To keep the invesr informed of his investments, we regular send transaction updates invesrs through /mobile (based on the details filled at the time of account opening). We have a dedicated cusmer service team, Toll Free number and id for servicing all invesr queries at the earliest. Further, there have been initiatives inform all Invesrs and Distriburs about the latest regulary changes that have happened in the industry. In our endeavor educate our invesrs regularly we have set up Knowledge Academy. The sole purpose is increase invesr education and knowledge levels. We are arranging Invesr Awareness Programs through our partners in all our cities or presence, increase knowledge levels of invesrs. We have released invesr booklets, contribute articles in financial websites and national publications explain financial terms in a simple languages. We share newsletters and mailers our invesrs on key financial terms, every week. Details of Invesr Complaints: The Fund is also prompt in redressing the complaints/requests received from the invesrs. The Statement on Status of Redressal of Complaints received against Mutual Fund during the financial year is annexed and forms part of the Trustee Report as Annexure II. Dividend declared during the financial year : The Plan/Option wise per unit NAV particulars of various schemes as on 31 st March, 2014^ as well as the details of dividends declared during the period under review are as under:- MIRAE ASSET INDIA OPPORTUNITIES FUND Scheme Description NAV per unit March 31, 2014 INDIVIDUAL Dividend Per Unit NON INDIVIDUAL India Opportunities Fund - Regular - Dividend Plan India Opportunities Fund - Regular - Growth Plan NA NA India Opportunities Fund - Direct - Dividend Plan NIL NIL India Opportunities Fund - Direct - Growth Plan NA NA NA - Not Applicable (in Rs.) 7

8 MIRAE ASSET GLOBAL COMMODITY STOCKS FUND Scheme Description NAV per unit March 31, 2014 INDIVIDUAL Dividend Per Unit NON INDIVIDUAL Global Commodity Scks Fund - Regular - Dividend Option NIL NIL Global Commodity Scks Fund - Regular -Growth Option NA NA Global Commodity Scks Fund - Direct - Dividend Option NIL NIL Global Commodity Scks Fund - Direct - Growth Option NA NA NA - Not Applicable MIRAE ASSET CHINA ADVANATGE FUND Scheme Description NAV per unit March 31, 2014 INDIVIDUAL Dividend Per Unit NON INDIVIDUAL China Advantage Fund - Regular - Dividend Option NIL NIL China Advantage Fund - Regular - Growth Option NA NA China Advantage Fund - Direct - Dividend Option NIL NIL China Advantage Fund - Direct - Growth Option NA NA NA - Not Applicable MIRAE ASSET EMERGING BLUECHIP FUND Scheme Description NAV per unit March 31, 2014 INDIVIDUAL Dividend Per Unit NON INDIVIDUAL Emerging Bluechip Fund - Regular - Dividend Option Emerging Bluechip Fund - Regular - Growth Option NA NA Emerging Bluechip Fund - Direct - Dividend Option NIL NIL Emerging Bluechip Fund - Direct - Growth Option NA NA NA - Not Applicable (in Rs.) (in Rs.) (in Rs.) MIRAE ASSET INDIA-CHINA CONSUMPTION FUND (in Rs.) Scheme Description NAV per unit March 31, 2014 INDIVIDUAL Dividend Per Unit NON INDIVIDUAL India-China Consumption Fund - Regular - Dividend Option India-China Consumption Fund - Regular - Growth Option NA NA India-China Consumption Fund - Direct - Dividend Option NIL NIL India-China Consumption Fund - Direct - Growth Option NA NA NA - Not Applicable MIRAE ASSET CASH MANAGEMENT FUND Scheme Description NAV per unit March 28, 2014^ INDIVIDUAL Dividend Per Unit NON INDIVIDUAL Cash Management Fund - Regular - Daily Dividend Plan Cash Management Fund - Regular - Weekly Dividend Plan Cash Management Fund - Regular - Monthly Dividend Cash Management Fund - Regular - Growth NA NA Cash Management Fund - Direct - Daily Dividend Cash Management Fund - Direct - Growth NA NA Cash Management Fund - Direct - Weekly Dividend NA Not Applicable (in Rs.) 8

9 MIRAE ASSET ULTRA SHORT TERM BOND FUND Scheme Description NAV per unit March 28, 2014^ INDIVIDUAL Dividend Per Unit NON INDIVIDUAL Ultra Short Term Bond Fund - Regular - Growth 1, NA NA Ultra Short Term Bond Fund - Regular - Monthly Dividend 1, NIL NIL Ultra Short Term Bond Fund - Regular - Daily Dividend 1, NIL NIL Ultra Short Term Bond Fund - Regular - Weekly Dividend 1, NIL NIL Ultra Short Term Bond Fund - Institutional - Growth Option 1, NA NA Ultra Short Term Bond Fund - Institutional - Dividend Plan (Quarterly) 1, Ultra Short Term Bond Fund - Institutional - Monthly Dividend 1, Ultra Short Term Bond Fund - Institutional - Weekly Dividend 1, Ultra Short Term Bond Fund - Institutional - Daily Dividend 1, Ultra Short Term Bond Fund - Direct - Growth 1, NA NA Ultra Short Term Bond Fund - Direct - Monthly Dividend 1, NIL NIL Ultra Short Term Bond Fund - Direct - Quarterly Dividend 1, Ultra Short Term Bond Fund - Direct - Daily Dividend 1, NIL NIL Ultra Short Term Bond Fund - Direct - Weekly Dividend 1, NIL NIL NA Not Applicable MIRAE ASSET SHORT TERM BOND FUND Scheme Description NAV per unit March 28, 2014^ INDIVIDUAL Dividend Per Unit NON INDIVIDUAL Short Term Bond Fund - Regular - Growth NA NA Short Term Bond Fund - Regular - Quarterly Dividend Short Term Bond Fund - Regular - Monthly Dividend Short Term Bond Fund - Regular - Weekly Dividend Short Term Bond Fund - Direct - Growth NA NA Short Term Bond Fund - Direct - Quarterly Dividend NIL NIL Short Term Bond Fund - Direct - Weekly Dividend NIL NIL NA - Not Applicable (in Rs.) (in Rs.) Fixed Maturity Plan - Series I Days (in Rs.) Scheme Description NAV per unit March 28, 2014^ INDIVIDUAL Dividend Per Unit NON INDIVIDUAL Fixed Maturity Plan - Series I Days - Regular - Growth NA NA Fixed Maturity Plan - Series I Days - Direct - Growth NA NA Fixed Maturity Plan - Series I Days - Direct - Dividend NIL NIL ^ Last Business Day for the financial year NIL - Dividend not declared during the period under review i.e. 1 st April, st March, NA - Dividend option not applicable for scheme/ plan/ option Pursuant the declaration of dividend, the NAV of the dividend option of the Scheme falls the extent of the dividend pay-out and distribution tax, if any. daily dividends, cumulative dividend for a plan is indicated with record date as the month of dividend and the ex-dividend NAV as on March 28, Past performance may or may not be sustained in future. 3. BRIEF BACKGROUND OF THE TRUST, SPONSORS, TRUSTEE AND ASSET MANAGEMENT COMPANY (a) Mutual Fund (MAMF) (The Mutual Fund): Mutual Fund (MAMF) was set up as a Trust by the Settlers, Global Investments Company Limited (MAGIC) on 11th Ocber, 2007 with Mirae Asset Trustee Company Private Limited (the Trustee Company) as a Trustee in accordance with the provisions of the Indian Trust Act, 1882 and is duly registered under the Indian Registration Act, The Trustee has entered in an Investment Management Agreement dated 11th Ocber, 2007 with Global Investments (India) Private Limited (the AMC) function as the Investment Manager for all the Schemes of MAMF. MAMF was registered with SEBI on 30th November, (b) Global Investments Company Limited (MAGICL) (The Sponsor): Global Investments Company Limited (MAGICL) is a part of Financial Group (). was established in 1997 and is South Korea s leading independent financial services provider. With Asset Management as its core activity, is engaged in a broad range of financial services including Investment Banking, Wealth Management and Life Insurance. Other significant activities of the group include Alternate Investment including Private Equity, Venture Capital and Real Estate. 9

10 (c) Trustee Company Private Limited (The Trustee): The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unitholders. The Trustee has been discharging its duties and carrying out the responsibilities as provided in the Regulations and the Trust Deed. The Trustee seeks ensure that the Fund and the Schemes floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Sck Exchanges, the Association of Mutual Funds in India and other regulary agencies. Share Capital: During the year under review, Trustee Company Private Limited has not issued any further shares. Change in Composition of Board Members: During the year under review, there has been no change in the composition of the Board of Direcrs of the Trustee Company. As required by the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the Board of Trustee comprises two-thirds of the Direcrs who are not associated in any manner with the Sponsors of Mutual Fund. (d) Global Investments (India) Private Limited (The AMC): Global Investments (India) Private Limited, a company registered under the Companies Act, 1956 and having its registered office at Unit 606, 6th Floor, Windsor, off CST Road, Kalina, Santacruz (E), Mumbai Global Investments (India) Private Limited has been appointed as the Asset Management Company (AMC) of Mutual Fund by the Trustee vide. Investment Management Agreement ( IMA ) dated Ocber 11, 2007 entered in between Mirae Asset Trustee Company Private Limited and Global Investments (India) Private Limited. The Investment Manager was approved by SEBI act as the AMC for the Fund vide letter no. IMD/HSV/OTW/109716/2007 dated 30th November, Share Capital: During the year under review, Global Investments (India) Private Limited has not issued any further shares. Change in Composition of Board Members: During the year under review, following were the changes in the composition of the Board of Direcrs of the AMC: 1. Dr. Manoj Vaish was appointed on Board of AMC on August 8, 2013 and has ceased be an Independent Direcr with effect from January 25, Mr. N. N. Jambusaria has ceased be an Independent Direcr from the Board of the AMC with effect from August 27, Mr. Yogesh Chaddha has been appointed as an Independent Direcr on the Board of the AMC with effect from March 25, 2014 As required under the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, 50% of the Direcrs on the Board of AMC are independent Direcrs who are not an associate of, or associated in any manner with the sponsor or any of its subsidiaries or the Trustee Company. Invesrs may note that the Full Annual Report shall be disclosed on the website ( and shall also be available for inspection at the Head Office of the Mutual Fund. On written request present and prospective unit holders/ invesrs can obtain a copy of the Trust Deed, the Annual Report at a price and the text of the relevant Scheme. The Balance Sheet as at 31st March, 2014 and the Revenue Account for the year ended 31st March, 2014 for the various schemes are annexed this Report. 4. INVESTMENT OBJECTIVE OF THE SCHEMES: i. India Opportunities Fund: The investment objective of the scheme is generate long term capital appreciation by capitalizing on potential investment opportunities through predominantly investing in equities, equity related securities. The Scheme does not guarantee any returns. ii. Global Commodity Scks Fund: The investment objective of the scheme is generate long term capital appreciation through an actively managed portfolio investing in equity and equity related securities of companies that are engaged in Commodity and commodities related secrs/ sub secrs/ industries, with at least 65% of the corpus invested overseas in Asia Pacific and Emerging Markets. There is no assurance or guarantee of returns. iii. China Advantage Fund: The investment objective of the scheme is generate long-term capital appreciation by investing predominantly in units of China Secr Leader Equity Fund and/ or units of other mutual fund schemes, units of exchange traded schemes that focus on investing in equities and equity related securities of companies domiciled in or having their area of primary activity in China and Hong Kong. The Scheme may also invest a certain portion of its corpus in debt and money market securities and/ or units of debt/ liquid schemes of Domestic Mutual Funds, in order meet liquidity requirements from time time. The Scheme does not guarantee or assure any returns. iv. Emerging Bluechip Fund: The investment objective of the scheme is 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 p 100 scks by market capitalization and have market capitalization of atleast Rs.100 Crores at the time of investment. From time time, the fund manager may also seek participation in other Indian equity and equity related securities achieve optimal portfolio construction. The Scheme does not guarantee or assure any returns. v. India-China Consumption Fund: The investment objective of the scheme is generate long term capital appreciation through an actively managed portfolio investing in equity and equity related securities of companies that are likely benefit either directly or indirectly from consumption led demand in India / China. The Scheme does not guarantee or assure any returns. vi. Cash Management Fund: The investment objective of the scheme is generate consistent returns with a high level of liquidity in a judicious portfolio mix comprising of money market and debt instruments. The Scheme does not guarantee any returns. vii. Short Term Bond Fund: The investment objective of the scheme is seek generate returns through an actively managed diversified portfolio of debt and money market instruments. There is no assurance OR guarantee of returns. viii. Ultra Short Term Bond Fund: The investment objective of the scheme is seek generate returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. The Scheme does not guarantee any returns. 10

11 ix. Fixed Maturity Plan - Series I days: The investment objective of the Plans under the Scheme is generate income through investments in Debt and Money Market Instruments maturing on or before the maturity date of the respective Plan(s). The Scheme does not guarantee or assure any return. 5. SIGNIFICANT ACCOUNTING POLICIES: The Significant Accounting Policies form part of the Notes the Accounts annexed the Balance Sheet of the Schemes. The Accounting Policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations, Unclaimed Redemptions & Dividends: Summary of No. of Invesrs & Corresponding amount as at March 31, 2014: Name of the Scheme Unclaimed Redemptions Unclaimed Dividends Amount (Rs.) No. of Invesrs Amount (Rs.) No. of Invesrs India Opportunities Fund 2,490, , Global Commodity Scks fund 360, , Emerging Bluechip Fund 305, India-China Consumption Fund 38, China Advantage Fund 27, Ultra Short Term Bond fund 38, Short Term Bond Fund Cash Management Fund 47, STATUTORY INFORMATION: (a) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution ( the extent contributed) of Rs.1 Lakh for setting up the Fund, and such other accretions / additions the same. (b) The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. (c) Full Annual Report is available on the website ( and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price. Trustee Company Private Limited V. B. Haribhakti S. T. Gerela Chairman Direcr Place : Mumbai Date : July 14,

12 Performance (CAGR) as on March 31, 2014 (in %) 1 year 3 years 5 years Since inception of fund Emerging Blue Chip Fund - Direct Plan - Growth Option N.A N.A Emerging Blue Chip Fund - Regular Plan - Growth Option N.A Benchmark CNX Midcap N.A 0.99 Past performance may or may not be sustained in the future. The Scheme had outperformed its benchmark on 1 year basis majorly due better Sck picking in Pharma, Banking & IT Secr. Also the performance since inception continues be healthy. Date of Inception: Regular Growth: July 09, 2010; Direct Growth: January 1, India Opportunities Fund - Direct Plan - Growth Option N.A N.A India Opportunities Fund - Regular Plan - Growth Option Benchmark S&P BSE Past performance may or may not be sustained in the future. The Scheme had outperformed its benchmark on 1 year basis majorly due better Sck picking in Pharma, Energy and Banking secr. Also, the performance over 5 years and since inception continues be healthy. Date of Inception: Regular Growth: April 04, 2008; Direct Growth: January 1, China Advantage Fund - Direct Plan - Growth Option N.A N.A 7.17 China Advantage Fund - Regular Plan - Growth Option N.A 6.05 Benchmark MSCI China (INR) N.A 4.19 Past performance may or may not be sustained in the future. The Scheme had outperformed its benchmark on 1 year basis and since inception basis due better performance of underlying scheme. Date of Inception: Regular Growth: November 05, 2009; Direct Growth: January 1, India China Consumption Fund - Direct Plan - Growth Option N.A N.A India-China Consumption Fund - Regular Plan - Growth Option N.A Benchmark S&P India & China Weighted Index N.A Past performance may or may not be sustained in the future. The Scheme had outperformed its benchmark on 1 year basis majorly due Overweight on Indian Scks and Underweight on China Scks. The scheme has underperformed on since inception basis, due underweight on Pharma secr and its cash position. Date of Inception: Regular Growth: March 29, 2011; Direct Growth: January 1, Global Commodity Scks Fund - Regular Plan - Growth Option 4.08 (3.66) Global Commodity Scks Fund - Direct Plan - Growth Option 4.50 N.A N.A (3.97) Benchmark S&P Pan Asia Large Midcap Commodity & Resource Capped Index (12.26) (9.17) Past performance may or may not be sustained in the future. The Scheme had outperformed its benchmark on 1 year basis majorly due better Sck picking in Metals & Construction related secrs. Also, the performance over 5 years and since inception continues be healthy. Date of Inception: Regular Growth: August 20, 2008; Direct Growth: January 1, Short Term Bond Fund - Direct Plan - Growth Option 8.61 N.A N.A 8.46 Short Term Bond Fund - Regular Plan - Growth Option N.A 5.96 Benchmark Crisil Short Term Bond Fund Index N.A 7.36 Past performance may or may not be sustained in the future. The Scheme underperformed its benchmark as it had lower average maturity and due Underweight on high yielding Commercial Papers, Corporate Bonds and Overweight on Certificate of Deposits, however the fund s credit quality is better than the benchmark. Date of Inception: Regular Growth: August 03, 2009; Direct Growth: January 1, Cash Management Fund - Direct Plan - Growth Option 8.63 N.A N.A 8.43 Cash Management Fund - Regular Plan - Growth Option Benchmark Crisil Liquid Fund Index Past performance may or may not be sustained in the future. The Scheme underperformed its benchmark due Underweight on high yielding Commercial Papers and Overweight on Certificate of Deposits, however the fund s credit quality is better than the benchmark. Date of Inception: Regular Growth: January 12, 2009; Direct Growth: January 1,

13 Ultra Short Term Bond Fund - Regular Plan - Growth Option 8.03 N.A N.A 2.33 Ultra Short Term Bond Fund - Direct Plan - Growth Option 8.68 N.A N.A 8.69 Benchmark Crisil Liquid Fund Index 9.46 N.A N.A 7.48 Past performance may or may not be sustained in the future. The Scheme underperformed its benchmark as it had lower average maturity and due Underweight on high yielding Commercial Papers and Overweight on Certificate of Deposits, however the fund s credit quality is better than the benchmark. Date of Inception: Regular Growth: March 05, 2008; Direct Growth: January 1, FMP-1-368D - Direct Plan - Growth Option N.A N.A N.A FMP-1-368D - Regular Plan - Growth Option N.A N.A N.A Benchmark CRISIL Short Term Bond Fund Index N.A N.A N.A Past performance may or may not be sustained in the future. The Scheme had outperformed its benchmark since inception. Date of Inception: Regular Growth: February 21, 2014; Direct Growth: January 1,

14 Annexure I VOTING RIGHTS POLICY OF MIRAE ASSET MUTUAL FUND Global Investments (India) Private Limited (Mirae AMC) is the asset management company for Mutual Fund. In this role, Mirae AMC has an obligation act in the best interests of the Funds. This responsibility includes exercising the voting rights attached securities held by the Funds. It is the policy of Mirae AMC exercise the voting rights of the Funds in accordance with the best interests of the Funds. This Policy contains the principles that form the basis of all votes. Mirae AMC believes that these principles are essential ensure the long-term performance of assets managed by Mirae AMC. Mirae AMC will manage voting rights with the same level of care and skill as it manages the funds. In general, Mirae AMC does not have the intention participate directly or indirectly in the management of the companies but it will use its influence as a shareholder amongst others by exercising its voting rights in accordance with the best interests of its funds unit holders. The exercise of voting rights requires the ongoing review of the corporate governance and performance of management of an issuer and the consideration of the potential impact of a vote on the value of the securities of the issuer held by the Funds. In order discharge its obligations under this policy, Mirae AMC accesses and utilizes research on management performance and corporate governance issues, drawn from portfolio manager and analyst due diligence, information provided by leading independent research firms and involvement in organizations. In terms of the Securities and Exchange Board of India ( SEBI ) Circular No.SEBI/IMD/CIR No.18/198647/ 2010 dated March 15, 2010 and clarificary received from SEBI on June 23, 2011, we have framed the general voting policy and procedures for exercising the voting rights ( Voting Policy ). This Voting Policy shall be applicable all equity holdings across all our mutual fund schemes. What Does Voting Right Mean? Voting Right means, the right of a sckholder vote on matters of corporate policy. Voting often involves decisions on issuing securities, initiating corporate actions and making substantial changes in the corporation s operations such as the election of the company s direcrs, merger/amalgamations, appointment of audirs, etc. Equity mutual funds, and other mutual funds with an equity component, hold shares of companies. The funds are entitled exercise the voting rights attached those shares. The shareholders do not necessarily need be physically present at the site of the company s annual meeting/extra-ordinary general meeting in order exercise their right vote. It is common for shareholders voice their vote by proxy. Proxy Voting Guidelines Issuers proxies most frequently contain proposals elect corporate direcrs, appoint external audirs and set their compensation, adopt or amend management compensation plans and amend the capitalization of the company. The Company shall exercise votes in the direction of improving the economic value of the portfolio and protecting the rights of the unitholders considering the following facrs: 1. Protecting the rights of unitholders 2. Improving operating profits 3. Raising the intrinsic value of the Company 4. Improving the Company s governance and financial structure. These guidelines summarize the corporate governance principles which the MAMF will generally support through the exercise of votes on these issues. 1. Boards of Direcrs - Mirae AMC supports that promote the effectiveness of boards in acting in the best interests of shareholders. It generally votes in favour of the election of direcrs for boards having a majority of independent direcrs and an independent chair, where the chairs of all board committees and at least a majority of committee members are independent. 2. Corporate governance matters - Mirae AMC support that change the state of incorporation, merger and other corporate restructuring which are in the interest of the unitholders. However, Mirae AMC will vote against pertaining takeover by an acquirer, etc which are against the interest of the unit holder. 3. Audirs and Audir Compensation - Where all members of an issuer s audit committee are independent, Mirae AMC will generally support the election of direcrs, the appointment of audirs and the approval of the recommended audir compensation. 4. Management Compensation - The goal of Mirae AMC is support compensation arrangements that are tied long-term corporate performance and shareholder value. These arrangements should induce management purchase and hold equity in the company better align management s interests with those of shareholders. Sck option plans that are overly generous or excessively dilutive other shareholders will not be supported. 5. Changes in Capitalization - Mirae AMC recognizes the need for management of an issuer have flexibility in the issue or buyback of shares meet changing financial conditions. Changes in capitalization will generally be supported where a reasonable need for the change is demonstrated, however changes resulting in excessive dilution of existing shareholder value will not be supported. 6. Social and corporate responsibility issues - Mirae AMC recognizes the need of role of government, demands for greater disclosures, increased invesr education, environmental benefits, benefits the community and the general public. Other issues, including those business issues specific the issuer or those raised by shareholders of the issuer, are addressed on a case-by-case basis with a focus on the potential impact of the vote on shareholder value. Mirae AMC reserves the right vote against any resolution that goes against the interest of its unit holders. Procedure for use of Proxy Voting Guidelines A decision invest in an issuer is based in part on a fund manager s analysis of the performance of management and the corporate governance of the issuer. Since a decision invest is generally an endorsement of management of the issuer, Mirae AMC will generally vote with management on routine matters. However, since a fund manager must be focused on shareholder value on an ongoing basis, it is the responsibility of the fund manager be aware of the potential investment implications of any issue on which security holders are asked vote. The Guidelines indicate the principles of corporate governance which the Funds will generally support through the exercise of proxy votes. While Mirae AMC will generally vote the Funds proxies strictly in accordance with the Funds Proxy Voting Guidelines, there may be circumstances where it believes it is in the best interests of a Fund vote differently than the manner contemplated by the Guidelines. The ultimate decision as the manner in which the Funds proxies will be voted rests with Mirae AMC. The AMC shall abide by the following procedure for exercising the voting rights: 1. The Investment team shall examine and decide on AGMs/EGMs which have been submitted its authority. If a consensus cannot be achieved, the final voting decision will be taken by the Chief Investment Officer. 2. In the interest of the invesrs of the fund and in order avoid excessive voting costs and ensure better efficiency, the Investment team shall analyze the Cost- Benefit analysis (CBA) between the voting costs involved in exercising voting vis-à-vis the benefit it may accrue the invesrs by exercising the voting rights. Such cases for which the benefit does not outweigh the cost, the AMC shall abstain vote. Nevertheless, it may also decide vote at meetings where it deems its participation important, even if the CBA is not in favour of exercising voting. (i.e. in the case of a contested AGM/EGM, etc.). 3. In most cases, the AMC exercises its funds voting rights by appointing an authorized agent (proxy). It may, however, if deemed necessary, be physically present at a meeting and vote in person. 4. Authorized Officials and/or authorized representatives of Cusdian of the Fund would submit voting instructions for s where the AMC chooses vote i.e. either FOR or AGAINST. 5. The AMC may also abstain from voting for certain proposals of the Investee Companies depending on various criteria and judgment. Proxy Voting Records In this section, you can find out how voting rights were exercised on behalf of the Mirae AMC that held voting securities. Disclosure of exercise of proxy votes in equity holdings across all schemes of the Fund shall be accessible on our website. To view records for the period from 1 st April, 2010 and onwards click here. The same would also be disclosed in the annual report from the financial year onwards. Conflict of interest provision Voting is exercised in the exclusive interest of holders. All votes are centralized, which ensures uniformity and adherence the aforementioned principles. The strict separation of Mirae AMC s asset management activities from other activities within the Financial Group prevents access of the asset management company insider and price sensitive information for which use and/or disclosure of such information could generate conflicts of interest. The parent of the AMC is a global investment manager and has various offices around the world. Hence, the investment manager is an affiliate of many diversified financial 14