5 th Annual Report

Transcription

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2 5 th Annual Report Sponsor: Mirae Asset Global Investments Company Limited Registered offi ce: East Tower 18F, Mirae Asset CENTER 1, 67 Suha-dong, Jung-gu, Seoul, KOREA Trustee: Mirae Asset Trustee Company Private Limited Registered Offi ce: Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East), Mumbai Asset Management Company: Mirae Asset Global Investments (India) Private Limited Registered & Corporate Offi ce: Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East), Mumbai Board of s Mirae Asset Trustee Company Private Limited Mr. V. B. Haribhakti - Chairman Mr. S. T. Gerela - (Independent) Mr. K. Ramasubramanian - (Independent) Mr. M. L. Soneji - (Independent) Mirae Asset Global Investments (India) Private Limited (AMC) Mr. B. N. Chakraborty (Independent) Mr. N. N. Jambusaria (Independent) Mr. Thomas Jefferson Park (Associate) (appointed w.e.f. April 10, 2012) Mr. Jisang Yoo & Chief Executive Offi cer (appointed w.e.f. April 10, 2012) Custodians: Standard Chartered Bank Mahatma Gandhi Road, Fort, Mumbai Citibank NA Securities & Fund Services, Citi India, 3rd Floor, Trent House, Plot No.G-60, Bandra Kurla Complex, Bandra (East), Mumbai Statutory Auditor: S.R. Batliboi & Co., Chartered Accountants 6 th Floor, Express Towers, Nariman Point, Mumbai Registrar & Transfer Agent: Karvy Computershare Private Limited Karvy Plaza; H No , Avenue 4, Street No.1, Banjara Hills, Hyderabad

3 Annual Report of Mirae Asset Mutual Fund for the year ended March 31, Dear Unit holder, The Trustee Company presents its fifth report and the audited financial statements of the Schemes of Mirae Asset Mutual Fund (the Fund ), for the year ended March 31, MIRAE ASSET MUTUAL FUND During the year ended March 31, 2012, the Fund(s) has declared dividends under its various Schemes and a list of such dividends is annexed and forms part of the Annual Report. During the period, the Average Assets under management of all the schemes were Rs crores as at 31 st March, Scheme Performance, Future Outlook and Operations of the Schemes 1. PERFORMANCE OF THE SCHEMES FOR THE PERIOD ENDED MARCH 31, (I) MIRAE ASSET INDIA OPPORTUNITIES FUND (MAIOF), an open ended equity oriented scheme. The investment objective of the scheme is to 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 to invest across sectors in quality companies which could deliver decent growth. The year was challenging for markets, and the fund focuses on bottom up approach for stock picking to help generate consistent outperformance over the benchmark. The investment strategy is to focus on high quality businesses, which can withstand current domestic and global headwinds. The quarterly average net assets of Mirae Asset India Opportunities Fund stood at Rs Crores for the quarter ended March 31, Comparison of the performance of Mirae Asset India Opportunities Fund with benchmark returns as on 31 st March, 2012:- NAV at the end of the period (Rs. per unit) Returns Returns Returns Value (INR)* Value (INR)* Value (INR)* MAIOF BSE 200 Sensex** MAIOF BSE 200 Sensex** 31 st Mar th Mar 2012& % -9.28% % 9,721 9,072 8, st Mar st Mar 2011& % 8.15% 10.94% 11,538 10,815 11, st Mar st Mar 2010& % 92.87% 80.54% 22,121 19,287 18,054 Since Inception(CAGR) 30 th Mar % 3.26% 3.21% 16,176 11,366 11,343 Index Value (30th Mar, 2012) Index Value of BSE 200 is and Index value of Sensex is Date of allotment 04-Apr-08 Scheme Benchmark BSE 200 (II) 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. & Absolute returns. **Alternate Scheme Benchmark. MIRAE ASSET GLOBAL COMMODITY STOCKS FUND (MAGCSF), an open ended equity fund. Given the slowdown in global economy led by Eurozone crisis and tightening monetary policy by developing nations to cool down infl ation led to weakening investor s sentiments and industrial commodity prices. In general, commodity prices fell over 20% except for oil, gold and live stocks. Even valuation of oil and gold equities corrected dramatically in the emerging markets where the fund invested compared to developed world due to rising interest rate. The fund focuses on combination of top down (for sector selection) and bottom up (for stock selection). The fund manager has tracked the benchmark by judicious stock selection and country allocation. Given the fragile global scenario, the volatility in commodities and related business is expected to continue. The quarterly average net assets of the Mirae Asset Global Commodity Stocks Fund stood at Rs Crores for the quarter ended March 31,

4 5 th Annual Report Comparison of the performance of Mirae Asset Global Commodity Stocks Fund with benchmark returns as on 31 st March, 2012:- NAV at the end of the period (Rs. per unit) Returns Returns Returns Value Value Value MAGCSF Scheme Benchmark Sensex** MAGCSF Scheme Benchmark Sensex** 31 st Mar th Mar 2012 & % % % 8,433 8,481 7, st Mar st Mar 2011 & % 15.48% 17.43% 10,754 11,548 11, st Mar st Mar 2010 & % 98.08% 81.03% 19,553 19,808 18,103 Since Inception(CAGR) 30 th Mar % 6.03% 1.55% 11,161 12,176 10,529 Index Value (30 th Mar, 2012) Index Value of benchmark is and Index value of Sensex is Date of allotment Scheme Benchmark 20-Aug-08 MSCI Asia Pacifi c ex-japan Energy & Material Index (55%) + MSCI India Energy & Material Index (35%) + MSCI Brazil Energy & Material Index (10%) with (MSCI s 10/40 Equity Index Methodology) 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. & Absolute returns. **Alternate Scheme Benchmark. (III) MIRAE ASSET CHINA ADVANTAGE FUND (MACAF), an open ended fund of funds scheme The scheme invests predominantly in units of Mirae Asset China Sector Leader Equity Fund and/or units of other mutual fund schemes, units of ETFs investing in equities and equity related securities of companies domiciled in or exercising a large portion of their economic activity in China and Hong Kong. The underlying fund manager has taken necessary corrective action with respect to addressing the performance of the fund which may work well in the coming years. The fund is positive about the recovery in China markets as inflation is on downward trajectory which will provide room for rate cut and monetary stimulus. Comparison of the performance of Mirae Asset China Advantage Fund with benchmark returns as on 31 st March, 2012:- NAV at the end of the period (Rs. per unit) Returns Returns Returns MACAF MSCI China (INR) Sensex** 31 st Mar th Mar 2012& % -2.77% % 31 st Mar st Mar 2011& % 6.12% 10.94% Index Value (March 30, 2012) Index value for benchmark is while for Sensex is 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. & Absolute returns. **Alternate Scheme Benchmark. (IV) MIRAE ASSET EMERGING BLUECHIP FUND (MAEBF), an open ended equity fund The fund investment philosophy is to invest across sectors in high-quality scalable mid-sized companies which could deliver decent growth. The year was challenging for markets, and the fund focuses on bottom up approach for stock picking to 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 quarterly average net assets of the Mirae Asset Emerging Bluechip Fund stood at Rs Crores for the quarter ended March 31, Comparison of the performance of Mirae Asset Emerging Bluechip Fund with benchmark returns as on 31 st March, 2012:- NAV at the end of the period (Rs. per unit) Return Return Return MAEBF CNX Midcap Sensex** 31 st Mar th Mar 2012 & % -4.09% % Index Value (March 30, 2012) Index Value of CNX Midcap is and Index value of Sensex is Date of allotment Scheme Benchmark 09-Jul-10 CNX Midcap 3

5 (V) 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. & Absolute returns. **Alternate Scheme Benchmark. MIRAE ASSET INDIA-CHINA CONSUMPTION FUND (MAICCF), an open ended equity oriented scheme The objective of the fund is to capitalize on long term secular theme related to consumption trend in India and China. The focus has been on secular and scalable businesses which would benefi t from changing demographics, rising aspiration and other consumption related themes. The quarterly average net assets of the Mirae Asset India-China Consumption Fund stood at Rs Crores for the quarter ended March 31, Comparison of the performance of Mirae Asset India-China Consumption Fund with benchmark returns as on 31 st March, 2012:- NAV at the end of the period (Rs. per unit) Return Return Return MAICCF Scheme Benchmark Sensex** 31 st Mar th Mar 2012& % 12.52% % Index Value (March 30, 2012) Index Value of CNX Midcap is and Index value of Sensex is Date of allotment 29-March 2011 Scheme Benchmark MSCI India consumption Index (65%) + MSCI China Consumption Index(35%) 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. & Absolute returns. **Alternate Scheme Benchmark. (VI) MIRAE ASSET GILT FUND (MAGF), an open ended gilt fund MAGF is an Open ended Gilt Scheme. The scheme has two plans i.e. Investment Plan and Savings Plan. (a) Investment Plan: The investment objective of the scheme is to seek to generate returns commensurate with low credit risk by predominantly investing in the portfolio comprising of sovereign securities issued and guaranteed by Central and State Government with residual maturity ranging from 1 year to 20 years or higher. The average portfolio maturity duration of the plan will exceed 4 years. There is no assurance or guarantee of returns. (b) Savings Plan: The investment objective of the scheme is to seek to generate returns commensurate with low credit risk by predominantly investing in the portfolio comprising of short to medium term Government securities guaranteed by Central and State Government with an average portfolio maturity duration not exceeding 5 years. There is no assurance or guarantee of returns. The fund will be managed according to its objective and thereby seek to generate returns commensurate with low credit risk by predominantly investing in the portfolio comprising of sovereign securities issued and guaranteed by Central and State Govt. The Scheme may also invest in money market instruments which include but is not limited to treasury bills, CBLO, repo/reverse repo and any other like instruments as are and or may be permitted under the Regulations and RBI from time to time. The investment team will take an active view of the interest rate movement by keeping a close watch on various macroeconomic parameters of the Indian economy as well as developments in global markets. Investment views / decisions will be taken on the basis of the various factors like, prevailing interest rate scenario, Government s borrowing programme, level of liquidity in the banking system, inflation levels and overall macro-economic growth of the country. The performance of the scheme is benchmarked against I Sec Li-Bex for Investment Plan & I Sec Si-Bex for Savings Plan. The quarterly average net assets of the Mirae Asset Gilt Fund - Investment Plan amounted to Rs.0.05 Crores while of the Mirae Asset Gilt Fund - Saving Plan amounted to Rs Crore for the quarter ended March 31, Comparison of the performance of Mirae Asset Gilt Fund - Investment Plan with benchmark returns as on 31 st March, 2012:- 31 st Mar th Mar 2012& 31 st Mar st Mar 2011& 31 st Mar st Mar 2010& Since Inception(CAGR) 30 th Mar 12 Index Value (30 th March, 2012) Date of allotment Benchmark NAV Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* MAGF-IP Scheme Benchmark Crisil 10 year dated GoI security** MAGF-IP Scheme Benchmark Crisil 10 year dated GoI security** % 6.30% 2.43% 10,596 10,630 10, % 7.41% 4.61% 10,262 10,741 10, % 3.09% 3.60% 10,417 10,309 10, % 4.12% 1.13% 11,259 11,354 10,359 Index value for benchmark is and the value of Crisil 10 year Gilt Index is Feb-09 I-Sec LiBex 4

6 5 th Annual Report Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The calculations of returns shall assume reinvestment of all payout at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option.** Crisil 10 year dated GoI security- Alternate Benchmark. & Absolute Returns. Comparison of the performance of Mirae Asset Gilt Fund - Savings Plan with benchmark returns as on 31 st March, 2012:- NAV Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* MAGF-SP Scheme Benchmark Crisil 10 year dated GoI security ** MAGF-SP Scheme Benchmark Crisil 10 year dated GoI security ** 31 st Mar th Mar 2012& % 7.39% 2.43% 10,523 10,739 10, st Mar st Mar 2011& % 4.90% 4.61% 10,179 10,490 10, st Mar st Mar 2010& % 6.10% 3.60% 10,136 10,610 10,360 Since Inception (CAGR)30th Mar % 5.59% 1.13% 10,932 11,864 10,359 Index Value (30 th March, 2012) Index value for benchmark is and the value of Crisil 10 year Gilt Index is Date of allotment 6-Feb-09 Benchmark I-Sec SiBex Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The calculations of returns shall assume reinvestment of all payout at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option.** Crisil 10 year dated GoI security - Alternate Benchmark. & Absolute Returns. $ Note :- An application for merger of Mirae Asset Gilt Fund Investment Plan and Mirae Asset Gilt Fund Savings Plan (said schemes) with Mirae Asset Short Term Bond Fund has been made with SEBI and is awaiting their no objection. After the requisite no-objection from SEBI, the said schemes shall cease to exist after giving an option to the investors to opt out of the merger for a period of 30 days without being levied any exit load. (VII) MIRAE ASSET CASH MANAGEMENT FUND (MACMF), an open ended liquid fund MACMF is an open ended liquid scheme. This scheme is meant for investors to deploy their funds for a short period of time. The fund will be managed according to the investment objective; thereby seeking to generate returns linked to MIBOR, call and CBLO etc. commensurate with low risk and shall maintain high liquidity for the purpose of meeting the liquidity requirements of the investors. The quarterly average net assets of the Mirae Asset Cash Management Fund amounted to Rs.5.51 Crores for the quarter ended March 31, Comparison of the performance of Mirae Asset Cash Management Fund with benchmark returns as on 31 st March, 2012:- Last 7 days (Simple Annualized) till 30 th Mar 2012 Last 15 days (Simple Annualized) till 30 th Mar 2012 Last 30 days (Simple Annualized) till 30 th Mar st Mar th Mar 2012 & 31 st Mar st Mar 2011 & 31 st Mar st Mar 2010 & Since Inception (CAGR) 30 th Mar 12 Index Value (30 th March, 2012) Date of allotment Benchmark NAV Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* Scheme Crisil 1 year Scheme Crisil 1 year MACMF MACMF Benchmark T-Bill ** Benchmark T-Bill ** % 9.75% 8.81% 10,864 10,975 10, % 9.78% 8.34% 10,847 10,978 10, % 9.56% 9.18% 10,821 10,956 10, % 8.44% 6.59% 10,755 10,844 10, % 6.21% 3.86% 10,511 10,621 10, % 3.69% 3.08% 10,219 10,369 10, % 6.23% 4.25% 11,642 12,145 11,430 Index value for benchmark is and the value of Crisil 1 year T Bill Index is Jan-09 Crisil Liquid Fund Index 5

7 Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The calculations of returns shall assume reinvestment of all payout at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option.** Crisil 1 year T-Bill - Alternate Benchmark. & Absolute Returns. (VIII) MIRAE ASSET LIQUID FUND (MALF), an open ended liquid fund MALF is an open ended liquid scheme. This scheme is meant for investors to deploy their funds for a short period of time. The fund is managed according to the investment objective, thereby seeking to generate reasonable returns commensurate with low risk. The scheme s investment objective is to invest in money market and other debt securities and maintains high liquidity for the purpose of meeting the liquidity requirements of the investors. The quarterly average net assets of the Mirae Asset Liquid Fund amounted to Rs.1.05 Crores for the quarter ended March 31, Comparison of the performance of Mirae Asset Liquid Fund with benchmark returns as on 31 st March, 2012:- Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* NAV Scheme Crisil 1 year Scheme Crisil 1 year MALF MALF Benchmark T-Bill** Benchmark T-Bill** Last 7 days (Simple Annualized) % 9.75% 8.81% 10,822 10,975 10,881 till 30 th Mar 2012 Last 15 days (Simple Annualized) % 9.78% 8.34% 10,808 10,978 10,834 till 30 th Mar 2012 Last 30 days (Simple Annualized) % 9.56% 9.18% 10,782 10,956 10,918 till 30 th Mar st Mar th Mar 2012 & % 8.44% 6.59% 10,712 10,844 10, st Mar st Mar 2011 & % 6.21% 3.86% 10,470 10,621 10, st Mar st Mar 2010 & % 3.69% 3.08% 10,178 10,369 10, st Mar st Mar 2009 & % 8.81% 7.28% 9,694 10,881 10,728 Since Inception (CAGR)30th Mar % 6.81% 5.29% 11,140 13,078 12,334 Index Value (30 th March, 2012) Index value for benchmark is and the value of Crisil 1 year T Bill Index is Date of allotment 5-Mar-08 Scheme Benchmark Crisil Liquid Fund Index Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The calculations of returns shall assume reinvestment of all payout at the then prevailing NAV. *Based on a standard investment of Rs.10,000 made at the beginning of the relevant period. CAGR = Compounded Annualised Growth Returns. Returns provided are of Regular Plan - Growth Option.** Crisil 1 year T-Bill - Alternate Benchmark. & Absolute Returns. (IX) 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 investors to deploy their funds for a short period of time. The fund is managed according to the investment objective, thereby seeking to generate returns commensurate with low risk. The scheme s investment objective is to invest in money market and other debt securities and maintains high liquidity for the purpose of meeting the liquidity requirements of the investors. The quarterly average net assets of the Mirae Asset Ultra Short Term Bond Fund amounted to Rs crores for the quarter ended March 31, Comparison of the performance of Mirae Asset Ultra Short Term Bond Fund with benchmark returns as on 31 st March, 2012:- 31 st Mar th Mar 2012 & 31 st Mar st Mar 2011 & 31 st Mar st Mar 2010 & 31 st Mar st Mar 2009 & Since Inception (CAGR) 30 th Mar 12 NAV Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* MAUSTBF Scheme Benchmark Crisil 1 year T-Bill** MAUSTBF Scheme Benchmark Crisil 1 year T-Bill** % 8.44% 6.59% 10,726 10,844 10, % 6.21% 3.86% 10,476 10,621 10, % 3.69% 3.08% 10,205 10,369 10, % 8.81% 7.28% 10,087 10,881 10, % 6.81% 5.29% 11,646 13,078 12,334 6

8 5 th Annual Report Index Value (30 th March, 2012) Date of allotment Scheme Benchmark Index value for benchmark is and the value of Crisil 1 year T Bill Index is Mar-08 Crisil Liquid Fund Index Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The calculations of returns shall assume reinvestment of all payout at the then prevailing NAV. *Based on a standard investment of Rs. 10,000 made at the beginning of the relevant period. CAGR = Compounded Annualised Growth Returns. Returns provided are of Regular Plan - Growth Option.** Crisil 1 year T-Bill - Alternate Benchmark. & Absolute Returns. (X) 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 to seek to generate returns through an actively managed diversifi ed portfolio of debt and money market instruments. The quarterly average net assets of the Mirae Asset Short Term Bond Fund amounted to Rs.5.82 Crores for the quarter ended March 31, Comparison of the performance of Mirae Asset Short Term Bond Fund with benchmark returns as on 31 st March, 2012:- NAV Returns (%) Returns (%) Returns (%) MASTBF Scheme Benchmark Crisil 1 year T-Bill ** 31 st Mar th Mar 2012& % 8.28% 6.59% 31 st Mar st Mar 2011& % 5.12% 3.86% Index Value (30 th Mar, 2012) Index value for benchmark is and the value of Crisil 1 year T Bill Index is Date of allotment 3-Aug-09 Benchmark Crisil Short Term Debt Index Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The calculations of returns shall assume reinvestment of all payout at the then prevailing NAV. Returns provided are of Regular Plan - Growth Option.** Crisil 1 year T-Bill - Alternate Benchmark. & Absolute Returns. 2. FUTURE OUTLOOK OF THE FUND AND OPERATIONS OF THE SCHEMES The Mutual Fund industry in India is one of the fastest growing industries in the fi nancial service sector with about 44 mutual funds currently operating in the country. The Mutual Fund has presently a total of 11 schemes in its product basket with a mix of equity, liquid, debt and fund of funds scheme. The key positive news from the MF industry has been the government push for landmark reforms to spur industry growth: Foreign investors allowed to invest into domestic mutual funds under the QFI route Management of offshore funds have been allowed by domestic funds resulting in signifi cant synergy in costs & resources The equity scheme(s) of the Fund have continued to deliver track record of superior performance consistently since inception and through this year as well. The performance of the funds has helped investors in achieving their fi nancial goals. Mirae Asset Mutual Fund has also achieved significant distribution break-throughs including key banking intermediaries & wealth management outfi ts. In a very challenging external environment, Mirae Asset Mutual Fund has successfully laid a strong foundation through a combination of well differentiated products, consistent performance track record and strong distributor engagements. As the company steps into the new fi scal, the aim is set for a high octane year of growth through a combination of unique products and superior performance for the investors. INVESTOR SERVICES Apart from continuous efforts in the direction of increasing awareness among investors with regards to fi nancial planning and investments, through available mediums (websites and Investor awareness programs), our fund house has been also disseminating information on specifi c types of asset classes through the media fraternity by organizing knowledge sharing workshops across cities. The fund house has been contributing to add understanding on investing basics, to help investors gain knowhow of mutual funds and understand financial tools. The Fund also made available the facility for investors to transact (purchase/redeem) units of select schemes of the Fund through the Stock Exchange Platform. Further, there have been initiatives to inform all Investors and Distributors about the latest regulatory changes that have happened in terms of Third Party, Nomination facility, Transmission procedure, Minor folios and Multiple Bank Accounts. Other follow up exercises on undelivered mails and unpaid cases which are pending for more than 6 months, were also carried out. Details of Investor Complaints: The Fund is also prompt in redressing the complaints/requests received from the investors. The Statement on Status of Redressal of Complaints received against Mirae Asset Mutual Fund during the fi nancial year is annexed and forms part of the Trustee Report as Annexure II. 3. BRIEF BACKGROUND OF THE TRUST, SPONSORS, TRUSTEE AND ASSET MANAGEMENT COMPANY (a) Mirae Asset Mutual Fund (MAMF): Mirae Asset Mutual Fund (MAMF) was set up as a Trust by the Settlers, Mirae Asset Global Investments Company Limited (MAGIC) on 11th October, 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 into an Investment Management Agreement dated 11th October, 2007 with Mirae Asset Global Investments (India) Private Limited (the AMC) to function as the Investment Manager for all the Schemes of MAMF. MAMF was registered with SEBI on 30th November,

9 (b) (c) Mirae Asset Global Investments Company Limited (MAGICL) is a part of Mirae Asset Financial Group (Mirae Asset). Mirae Asset was established in 1997 and is South Korea s leading independent fi nancial services provider. With Asset Management as its core activity, Mirae Asset is engaged in a broad range of fi nancial services including Investment Banking, Wealth Management and Life Insurance. Other signifi cant activities of the group include Alternate Investment including Private Equity, Venture Capital and Real Estate. Mirae Asset Trustee Company Private Limited: The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefi t 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 to ensure that the Fund and the Schemes fl oated there under are managed by the AMC in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. Share Capital: During the year under review, Mirae Asset 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 s 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 s who are not associated in any manner with the Sponsors of Mirae Asset Mutual Fund. Mirae Asset Global Investments (India) Private Limited: Mirae Asset Global Investments (India) Private Limited, a company registered under the Companies Act, 1956 and having its registered offi ce at Unit 606, 6th Floor, Windsor, off CST Road, Kalina, Santacruz (E), Mumbai Mirae Asset Global Investments (India) Private Limited has been appointed as the Asset Management Company (AMC) of Mirae Asset Mutual Fund by the Trustee vide. Investment Management Agreement ( IMA ) dated October 11, 2007 entered into between Mirae Asset Trustee Company Private Limited and Mirae Asset Global Investments (India) Private Limited. The Investment Manager was approved by SEBI to 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, Mirae Asset Global Investments (India) Private Limited has not issued any further shares. Change in Composition of Board Members: During the year under review, until March 31, 2012, there has been no change in the composition of the Board of s of the AMC. However, the following changes occurred w.e.f. April 10, 2012: 1. Mr. Cheon Woong Park has ceased to be the from the Board of the AMC with effect from April 10, Mr. Thomas Jefferson Park has been appointed as a (Associate) on the Board of the AMC with effect from April 10, Mr. Arindam Ghosh has ceased to be the from the Board of Mirae Asset Global Investments (India) Private Limited with effect from April 10, Further, he also ceased to be the Chief Executive Offi cer (CEO) & Key Personnel of the AMC w.e.f. April 10, 2012 and 4. Mr. Jisang Yoo has been appointed as a (Associate ) on the Board of the AMC with effect from April 10, He was further been appointed as the Chief Executive Offi cer (CEO) of Mirae Asset Global Investments (India) Private Limited (the AMC) w.e.f. April 10, As required under the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, 50% of the s on the Board of Mirae Asset AMC are independent s who are not an associate of, or associated in any manner with the sponsor or any of its subsidiaries or the Trustee Company. Investors may note that the Full Annual Report shall be disclosed on the website ( and shall also be available for inspection at the Head Offi ce of the Mutual Fund. On written request present and prospective unit holders / investors can obtain a copy of the Trust Deed, the Annual Report at a price and the text of the relevant Scheme. Dividend declared during the financial year : The NAV particulars of various schemes as on 30 th March, 2012^ as well as the details of dividends declared during the period under review are as under:- MIRAE ASSET INDIA OPPORTUNITIES FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description Mirae Asset India Opportunities Fund - Regular Plan - Dividend Option Mirae Asset India Opportunities Fund - Regular Plan - Growth Option NAV per unit March 30, 2012^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL NA NA NA - Dividend option not applicable for scheme / plan / option. ^The last working day for the Financial Year was March 30, MIRAE ASSET CASH MANAGEMENT FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: 8

10 5 th Annual Report Scheme Description Mirae Asset Cash Management Fund - Regular Plan - Dividend Option - Daily Mirae Asset Cash Management Fund - Regular Plan - Dividend Option - Weekly Mirae Asset Cash Management Fund - Regular Plan - Dividend Option - Monthly Mirae Asset Cash Management Fund - Regular Plan - Growth Option NAV per unit March 30, 2012^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL NA NA NA - Dividend option not applicable for scheme / plan / option. MIRAE ASSET SHORT TERM BOND FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description Mirae Asset Short Term Bond Fund - Regular Plan - Growth Option Mirae Asset Short Term Bond Fund - Regular Plan - Dividend Option - Weekly Reinvestment Mirae Asset Short Term Bond Fund - Regular Plan - Dividend Option - Monthly - Reinvestment Mirae Asset Short Term Bond Fund - Regular Plan - Dividend Option- Quarterly Reinvestment NAV per unit March 30, 2012^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL NA NA Nil Nil NA - Dividend option not applicable for scheme / plan / option. NIL - Dividend not declared during the period under review i.e. 1 st April, 2011 to 30 th March, MIRAE ASSET LIQUID FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description NAV per unit March 30, 2012^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset Liquid Fund - Regular Plan - Growth Option NA NA Mirae Asset Liquid Fund - Regular Plan - Dividend Option - Daily Reinvestment Nil Nil Mirae Asset Liquid Fund - Regular Plan - Dividend Option - Weekly Reinvestment Nil Nil Mirae Asset Liquid Fund - Regular Plan- Dividend Option - Monthly Reinvestment Nil Mirae Asset Liquid Fund - Institutional Plan- Dividend Option - Daily Reinvestment Nil NA - Dividend option not applicable for scheme / plan / option. NIL - Dividend not declared during the period under review i.e. 1 st April, 2011 to 30 th March, ^The last working day for the financial year was March 30, Note: Post declaration of the dividend, the NAV of the Scheme will fall to the extent of the dividend pay-out and distribution tax, if any. For 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 30, Past performance may or may not be sustained in future. During the year under review, no dividend was declared under Mirae Asset Global Commodity Stocks Fund, Mirae Asset China Advantage Fund, Mirae Asset Emerging Bluechip Fund, Mirae Asset India-China Consumption Fund, Mirae Asset Ultra Short Term Bond Fund and Mirae Asset Gilt Fund Investment Plan & Savings Plan. 4. SIGNIFICANT ACCOUNTING POLICIES: The Signifi cant Accounting Policies form part of the Notes to the Accounts annexed to 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 Investors & Corresponding amount as at March 31, 2012: 9

11 Name of the Scheme Unclaimed Redemptions Unclaimed Dividends Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors Mirae Asset India Opportunities Fund Mirae Asset Global Commodity Stocks fund Mirae Asset Emerging Bluechip Fund Mirae Asset India-China Consumption Fund Mirae Asset China Advantage Fund *Mirae Asset Interval Fund- Quarterly Series Plan - II Mirae Asset Liquid Fund Mirae Asset Ultra Short Term Bond fund *Mirae Asset Interval Fund - Quarterly Series Plan - II was wound up on June 8, LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SPONSORS The liabilities and responsibility of the Trustee are in accordance with the SEBI (Mutual Funds) Regulations, 1996, Trust deed and the offer documents of the schemes. The liability of the Sponsor / Settlor is limited to the initial contribution of Rs.100,000/- towards the setting up of Mirae Asset Mutual Fund. The price and redemption value of the units and income from them, can go up as well as down with the fl uctuations in the market value of its underlying investments. There can be no assurance that the Fund s objective will be achieved. Past performance is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. 7. INVESTMENT OBJECTIVE OF THE SCHEMES: Mirae Asset India Opportunities Fund: The investment objective of the scheme is to 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. Mirae Asset Global Commodity Stocks Fund: The investment objective of the scheme is to 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 sectors/ sub sectors/ industries, with at least 65% of the corpus invested overseas in Asia Pacifi c and Emerging Markets. There is no assurance or guarantee of returns. Mirae Asset China Advantage Fund: The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in units of Mirae Asset China Sector 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 to meet liquidity requirements from time to time. The Scheme does not guarantee or assure any returns. Mirae Asset Emerging Bluechip Fund: The investment objective of the scheme is to generate income and capital appreciation from a diversifi ed 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. Mirae Asset India-China Consumption Fund: The investment objective of the scheme is to generate long term capital appreciation through an actively managed portfolio investing in equity and equity related securities of companies that are likely to benefit either directly or indirectly from consumption led demand in India/ China. The Scheme does not guarantee or assure any returns. Mirae Asset Gilt Fund: a) Investment Plan: The investment objective of the scheme is to seek to generate returns commensurate with low credit risk by predominantly investing in the portfolio comprising of sovereign securities issued and guaranteed by Central and State Government with residual maturity ranging from 1 year to 20 years or higher. b) Savings Plan: The investment objective of the scheme is to seek to generate returns commensurate with low credit risk by predominantly investing in the portfolio comprising of short to medium term Government securities guaranteed by Central and State Government with an average portfolio maturity duration not exceeding 5 years. There is no assurance or guarantee of returns. Mirae Asset Cash Management Fund: 10

12 5 th Annual Report The investment objective of the scheme is to seek to generate returns linked to short end rates like MIBOR and CBLO etc. and provide higher liquidity by investing in a portfolio of debt and money market instruments. The Scheme does not guarantee any returns. Mirae Asset Liquid Fund: The investment objective of the scheme is to seek to generate reasonable returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. The Scheme does not guarantee any returns. Mirae Asset Short Term Bond Fund: The investment objective of the scheme is to seek to generate returns through an actively managed diversifi ed portfolio of debt and money market instruments. There is no assurance OR guarantee of returns. Mirae Asset Ultra Short Term Bond Fund: The investment objective of the scheme is to seek to generate returns with low volatility and higher liquidity through a portfolio of debt and money market instruments. The Scheme does not guarantee any returns. 8. BASIS AND POLICY OF INVESTMENTS UNDERLYING THE SCHEME OF MIRAE ASSET MUTUAL FUND Investment policies of the Funds refl ect restrictions for mutual fund investments established by SEBI. Avenues for investment in equity are identifi ed on the following criteria: 1. Sound Management 2. Good track record of the Company 3. Potential for future growth 4. Industry scenario 5. Liquidity of the stock 6. Any other in the opinion of AMC Avenues for investment in debt are identifi ed on the following criteria: 1. Economic Scenario 2. Liquidity 3. RBI Stance 4. Credit Risk 5. Any other in the opinion of AMC ACKNOWLEDGEMENTS The Trustees wish to thank the Government of India, the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the Association of Mutual Funds in India (AMFI) for their support and directions. The Trustees would also like to thank the Fund s Auditors, Custodian, Registrar & Transfer Agent, Bankers, Distributors, Brokers and all other service providers for their valuable support. The Trustees also wish to thank all unit holders for their strong support. On behalf of the Board of s Mirae Asset Trustee Company Private Limited Sd/- V. B. Haribhakti Chairman Sd/- S. T. Gerela Place : Mumbai Date : 2 nd July,

13 VOTING RIGHTS POLICY OF MIRAE ASSET MUTUAL FUND Annexure I Mirae Asset Global Investments (India) Private Limited (Mirae AMC) is the asset management company for Mirae Asset Mutual Fund. In this role, Mirae AMC has an obligation to act in the best interests of the Funds. This responsibility includes exercising the voting rights attached to securities held by the Funds. It is the policy of Mirae AMC to 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 to 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 to 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 to 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 fi rms 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 clarifi catory 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 to all equity holdings across all our mutual fund schemes. What Does Voting Right Mean? Voting Right means, the right of a stockholder to 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 directors, merger/amalgamations, appointment of auditors, etc. Equity mutual funds, and other mutual funds with an equity component, hold shares of companies. The funds are entitled to exercise the voting rights attached to those shares. The shareholders do not necessarily need to be physically present at the site of the company s annual meeting / extra-ordinary general meeting in order to exercise their right to vote. It is common for shareholders to voice their vote by proxy. Proxy Voting Guidelines Issuers proxies most frequently contain proposals to elect corporate directors, to appoint external auditors and set their compensation, to adopt or amend management compensation plans and to 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 factors: 1. Protecting the rights of unitholders 2. Improving operating profi ts 3. Raising the intrinsic value of the Company 4. Improving the Company s governance and fi nancial structure. 1. These guidelines summarize the corporate governance principles which the MAMF will generally support through the exercise of votes on these issues.boards of s - Mirae AMC supports resolutions that promote the effectiveness of boards in acting in the best interests of shareholders. It generally votes in favour of the election of directors for boards having a majority of independent directors 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 resolutions 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 resolutions pertaining to takeover by an acquirer, etc which are against the interest of the unit holder. 3. Auditors and Auditor Compensation - Where all members of an issuer s audit committee are independent, Mirae AMC will generally support the election of directors, the appointment of auditors and the approval of the recommended auditor compensation. 4. Management Compensation - The goal of Mirae AMC is to support compensation arrangements that are tied to long-term corporate performance and shareholder value. These arrangements should induce management to purchase and hold equity in the company to better align management s interests with those of shareholders. Stock option plans that are overly generous or excessively dilutive to other shareholders will not be supported. 5. Changes in Capitalization - Mirae AMC recognizes the need for management of an issuer to have fl exibility in the issue or buyback of shares to meet changing fi nancial 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 investor education, environmental benefits, benefi ts to the community and the general public. Other issues, including those business issues specifi c to 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 to vote against any resolution that goes against the interest of its unit holders. Procedure for use of Proxy Voting Guidelines A decision to 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 to 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 to be aware of the potential investment implications of any issue on which security holders are asked to vote. 12

14 5 th Annual Report 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 to vote differently than the manner contemplated by the Guidelines. The ultimate decision as to 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 to its authority. If a consensus cannot be achieved, the fi nal voting decision will be taken by the Chief Investment Offi cer. 2. In the interest of the investors of the fund and in order to avoid excessive voting costs and to ensure better effi ciency, the Investment team shall analyze the Cost-Benefit analysis (CBA) between the voting costs involved in exercising voting vis-à-vis the benefi t it may accrue to the investors by exercising the voting rights. Such cases for which the benefi t does not outweigh the cost, the AMC shall abstain to vote. Nevertheless, it may also decide to 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 Custodian of the Fund would submit voting instructions for General Meetings where the AMC chooses to 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 fi nd 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 fi nancial year onwards. Conflict of interest provision Voting is exercised in the exclusive interest of holders. All votes are centralized, which ensures uniformity and adherence to the aforementioned principles. The strict separation of Mirae AMC s asset management activities from other activities within the Mirae Asset Financial Group prevents access of the asset management company to insider and price sensitive information for which use and/or disclosure of such information could generate confl icts of interest. The parent of the AMC is a global investment manager and has various offi ces around the world. Hence, the investment manager is an affi liate of many diversifi ed fi nancial organization across the globe, however the investment manager is a stand-alone entity in India. Any fi nancial transaction, where: i) The investment is made into group companies of the AMC, or ii) The investee companies have subscribed to the units of their schemes, may lead to confl ict of interest. Generally, the AMC shall abstain to vote for any matters connected with the above. However, the AMC will make its best efforts to avoid any confl icts and ensure that any confl icts of interest are resolved in the best interest of the unit-holders. Additionally, Mirae AMC has implemented an organization, procedures and appropriate controls and monitoring routines in order to prevent confl ict of interest. Review and control process 1. On analysis of AGM/EGM resolutions, if any conflict of interest is identified with the AMC s voting policy, then the same shall be alerted to the Chief Investment Offi cer. 2. The AMC shall be responsible for maintaining records for votes cast and abstentions, proxy statements and any other relevant record in this regard. 3. All the voting rights exercised/abstentions in the previous month shall be reported to the Investment committee meeting in the next month. 4. Every record, including the voting statements, abstentions shall be retained for audit purpose. 5. The process of exercise of proxy votes as listed above shall be reviewed by the AMC, from time to time. * - The above listed Voting Policy of Mirae Asset Mutual Fund was approved by the Board of s of Mirae Asset Trustee Company Private Limited on 6th April, 2010 and as per the clarifications received from SEBI, was later modified in their meeting held on June 27,