Mirae Asset Mutual Fund Annual Report -13 (Abridged) Board of Directors Mirae Asset Trustee Company Private Limited Mr. V. B. Haribhakti Mr. S. T. Gerela Mr. K. Ramasubramanian Mr. M. L. Soneji Chairman Mirae Asset Global Investments (India) Private Limited (AMC) Mr. B. N. Chakraborty Mr. N. N. Jambusaria Mr. Thomas Jefferson Park Mr. Jisang Yoo Sponsor: Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Independent) Director (Associate) Director & Chief Executive Officer (Associate) Mirae Asset Global Investments Company Limited Registered office: East Tower 18F, Mirae Asset CENTER 1, 67 Suha-dong, Jung-gu, Seoul, KOREA 100-210 Asset Management Company: Mirae Asset Global Investments (India) Private Limited Registered & Corporate Office: Unit No.606, Windsor Building, Off. C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098. Custodians: Standard Chartered Bank 23-25 Mahatma Gandhi Road, t, Mumbai - 400 001. Citibank NA Securities & Fund Services, Citi India, 3rd Floor, Trent House, Plot No.G-60, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. Statutory Auditor: Chokshi & Chokshi 15/17, Raghavji B Bldg., Gowalia Tank, Off. Kemps Corner, Mumbai - 400 036. Registrar & Transfer Agent: Karvy Computershare Private Limited Karvy Plaza; H. No.8-2-596, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500 034. Trustee: Mirae Asset Trustee Company Private Limited Registered Office: Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East), Mumbai - 400 098. MUTUAL BRANCH OFFICES - Ahmedabad-107, 1 st Floor, Abhijeet I, Mithakhali Six Roads, Mithakhali Circle, Navrangpura, Near HDFC Bank, Ahmedabad-380009. Tel-079-44227777. Asansol-M/s. Safe Savings, Street No.1, House No.2, Hindustan Park, Asansol-713304. Bangalore-Prestige Meridian-II, Flat No.308, 2 nd Floor, No.29, M. G. Road, Bangalore-560001. Tel-080-44227777. Chennai-Premises No.206, Challa Mall, 11-11 A, Sir Theyagaraya Road, T. Nagar, Chennai -600017. Tel-044-44227777. Kanpur-1 st Floor, Shop No.111, KAN Chambers, 14/113, Civil Lines, Kanpur, Uttar Pradesh-208001. Tel-0512-3012896. Kolkata-Krishna Building, Room No.510, 5 th Floor, 224 A. J. C. Bose Road, Beck Bagan Junction, Kolkata-700 017. Tel-033-44227777. Mumbai (Corporate Office)-Unit No.606, 6 th Floor, Windsor Bldg., Off. CST Road, Kalina, Santacruz (E), Mumbai- 400 098. Tel-022-67800300. New Delhi-Office No.1010, 10 th Floor, Indraprakash Building, 21 Barakhamaba Road, Connaught Place, New Delhi-110001. Tel-011-44227777. Pune-74, C Wing, 4 th Floor, Sreenath Plaza, Dnyaneshwar Paduka Chowk, F. C. Road, Shivaji Nagar, Pune -411005. Tel-020-44227777.
TRUSTEE REPORT OF MUTUAL FOR THE YEAR ENDED MARCH 31,. Dear Unit holder, The Trustee company presents its Sixth report and the audited financial statements of the Schemes of Mirae Asset Mutual Fund (the Fund ), for the year ended March 31,. MUTUAL As of March 31,, Mirae Asset Global Investments (India) Pvt. Ltd., Asset Management Company (the AMC) managed 9 schemes of Mirae Asset Mutual Fund. The break-up being 4 open-ended equity schemes, 1 open-ended fund of funds scheme and 4 open-ended liquid / debt schemes. Among the key achievements, Mirae Asset Mutual Fund recorded an impressive growth of 21.6% in FY 13 with the Average Assets under management growing from Rs.444 crores to Rs.540 crores during the same period against the backdrop of a very challenging business environment. The above incremental growth in assets has been driven by the fund performance displayed by its equity schemes. The performance has been equally encouraging with our flagship equity scheme, Mirae Asset India Opportunities Fund outperforming its benchmark S&P BSE 200 by 2.30% whilst Mirae Asset Emerging Bluechip Fund outpacing its benchmark CNX Midcap by 13.71% during the same period (for detailed performance, please see section 1). The Fund house also declared dividends under its various equity schemes as highlighted below. Fund Name Dividend Amount (Rs. per unit) Record Date Mirae Asset India Opportunities Fund 1.40 14/03/ Mirae Asset Emerging Bluechip Fund 1.10 29/10/ Mirae Asset India China Consumption Fund 1.30 20/03/ It was the 4 th consecutive dividend in Mirae Asset India Opportunities Fund (based on financial year), while maiden dividends were declared in Mirae Asset Emerging Bluechip Fund & Mirae Asset India China Consumption Fund. Mirae Asset Mutual Fund has successfully built a solid foundation for itself in India having adopted a distinct strategy of equity focus with fixed income as an asset allocation play; the Fund has developed a highly differentiated portfolio of funds which includes domestic funds as well country specific / thematic funds. The absolute fund performance has been made possible by the distinct investment philosophy adopted by the asset manager as well as the quality and stability of its investment management team. The Mutual Fund Industry has witnessed reduction of 36.24 lakh folios mainly due to equity funds which saw reduction in number of folio by 44.7 lakhs. Our Investor Accounts currently stand at 53417, a 7% growth since March while our SIP book holds 15483 accounts with a 14.5% growth since March (March was 15444) 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) (II) INDIA OPPORTUNITIES (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.290.65 Crores for the quarter ended March 31,. March 31,, 98.79% of the net assets were invested in equity shares and balance in CBLO. Comparison of the performance of Mirae Asset India Opportunities Fund with benchmark returns as on 31 st March, :- NAV at the end of the period (Rs. per unit) Returns Returns Returns Value (INR)* Value (INR)* Value (INR)* MAIOF S&P BSE 200 S&P Sensex** MAIOF BSE 200 Sensex** 1st April - 31st March 17.522 8.32% 6.03% 8.23% 10,832 10,603 10,823 1st April 2011-31st March 16.18-2.93% -9.52% -10.38% 9,707 9,048 8,962 1st April 2010-31st March 2011 16.64 14.36% 7.27% 9.91% 11,436 10,727 10,991 1st April 2009-31st March 2010 14.42 117.21% 89.60% 77.01% 21,721 18,960 17,701 1st April 2008-31st March 2009 6.52-40.91% 37.87% 10,000 5,909 6,213 Since Inception 17.522 - - - 18,632 12,769 13,235 Index Value (28th March, ) Index Value of benchmark is 2424.38 and Index value of Sensex is 19426.71 Date of allotment 04-Apr-08 Scheme Benchmark S&P 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. &Absolute returns. **Alternate Scheme Benchmark. EMERGING BLUECHIP (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.137.29 Crores for the quarter ended March 31,. March 31,, 95.23 % of the net assets were invested in equity shares and balance in CBLO, and others. Comparison of the performance of Mirae Asset Emerging Bluechip Fund with benchmark returns as on 31 st March, :- NAV at the end of the period (Rs. per unit) Return Return Return MAEBF CNX Midcap Sensex** 30th Dec 2011-31st Dec & 13.90 45.27% 38.91% 25.54% 31st Dec 2010-30th Dec 2011 & 9.549-15.19% -31.07% -24.70% Since Inception 13.90 14.19% 0.98% 3.51% Index Value (31st Dec, ) Index Value of benchmark is 8505.1 and Index value of Sensex is 19426.71 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. &Absolute returns. **Alternate Scheme Benchmark. 1
(III) INDIA-CHINA CONSUMPTION (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 benefit 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.17.48 Crores for the quarter ended March 31,. March 31,, 70.05 % of the net assets were invested in domestic equity, 26.47% of the net assets were invested in international equity and balance in CBLO, and others. Comparison of the performance of Mirae Asset India-China Consumption Fund with benchmark returns as on 31 st March, :- NAV at the end of the period (Rs. per unit) Return Return Return MAICCF Scheme Benchmark Sensex** 30th Dec 2011-31st Dec & 13.408 35.39% 32.43% 25.54% Since Inception 13.408 18.11% 19.25% 0.91% Index Value (31st Dec, ) Index Value of benchmark is 142.03 and Index value of Sensex is 19426.71 Date of allotment 29-March-11 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. (IV) GLOBAL COMMODITY STOCKS (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 inflation 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.21.01 Crores for the quarter ended March 31,. March 31,, 67.82% of the net assets were invested in international equity shares, 31.45% of the net assets were invested in domestic equity and balance in CBLO and others. Comparison of the performance of Mirae Asset Global Commodity Stocks Fund with benchmark returns as on 31 st March, :- (V) NAV at the end of the period (Rs. per unit) Returns Returns Returns Value Value Value MAGCSF Scheme Benchmark Sensex** MAGCSF Scheme Benchmark Sensex** 30th Dec 2011-31st Dec & 12.671 13.45% 11.75% 25.54% 11,345 11,175 12,554 31st Dec 2010-30th Dec 2011 & 11.161-15.67% -15.19% -24.70% 8,433 8,481 7,530 31st Dec 2009-31st Dec 2010 13.229 7.54% 11.97% 17.43% 10,754 11,197 11,743 31st Dec 2008-31st Dec 2009 12.301 95.53% 104.31% 81.03% 19,553 20,431 18,103 Since Inception 12.671 5.57% 7.32% 6.63% 12,671 13,614 13,235 Index Value (31st Dec, ) Index Value of benchmark is 126.59 and Index value of Sensex is 19426.71 Date of allotment 20-Aug-08 Scheme Benchmark MSCI AC Asia Pacific Selected Countries and Sectors Special 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. &Absolute returns. **Alternate Scheme Benchmark. CHINA ADVANTAGE (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. The quarterly average net assets of the Mirae Asset China Advantage Fund stood at Rs.33.07 Crores for the quarter ended March 31,. March 31,, 99.93 % of the net assets were invested in equity shares and balance in CBLO, and others. Comparison of the performance of Mirae Asset China Advantage Fund with benchmark returns as on 31 st March, :- NAV at the end of the period (Rs. per unit) Returns Returns Returns Value Value Value MACAF MSCI China(INR) Sensex** MACAF MSCI China(INR) Sensex** 30th Dec 2011-31st Dec & 11.705 19.24% 22.61% 25.54% 11,924 12,261 12,554 31st Dec 2010-30th Dec 2011 & 9.807-11.93% -5.39% -24.70% 8,807 9,461 7,530 31st Dec 2009-31st Dec 2010 11.131 11.56% -1.68% 17.43% 11,156 9,832 11,743 Since Inception 11.705 5.11% 4.80% 6.21% 11,705 11,595 12,093 Index Value (31st Dec, ) Index Value of benchmark is 444.84 and Index value of Sensex is 19426.71 Date of allotment 05-Nov-09 Scheme Benchmark 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. (VI) CASH MANAGEMENT (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.6.43 Crores for the quarter ended March 31,. March 31,, 99.11% of the net assets were invested in CBLO & others. Comparison of the performance of Mirae Asset Cash Management Fund with benchmark returns as on 31 st March, :- NAV Returns (%) Value(INR)* MACMF Scheme Benchmark Crisil 1 year T-Bill ** MACMF Scheme Benchmark Crisil 1 year T-Bill ** Since Inception (CAGR) 31th Mar 13 1,253.660 5.52% 6.70% 5.21% 12,536.60 13,137.49 12,381.76 Last 7 days (Simple Annualized) till 28th Mar 1,253.660 7.87% 7.87% 10.54% - - - Last 15 days (Simple Annualized) till 28th Mar 1,253.660 7.55% 8.10% 11.55% - - - Last 30 days (Simple Annualized) till 28th Mar 1,253.660 7.34% 8.24% 9.18% - - - 31st Mar - 30th Mar & 1,253.660 7.69% 8.22% 8.33% - - - 31st Mar 2011-30th Mar & 1,164.173 7.55% 8.47% 6.59% - - - 31st Mar 2010-31st Mar 2011 & 1,082.476 5.11% 6.21% 3.86% - - - Index Value (31st March, ) Index value for benchmark is 1,943.85 and the value of Crisil 1 year T Bill Index is Latest Price 3,592.27 Date of allotment 12-Jan-09 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. Returns provided are of Regular Plan - Growth Option.** Crisil 1 year T-Bill Alternate Benchmark. & Absolute Returns 2
(VII) ULTRA SHORT TERM BOND (MAUSTBF), an open ended debt scheme 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.30.21 crores for the quarter ended March 31,. March 31,, 9.86% of the net assets were invested in CBLO and 89.94% in CD & 10.05% in Cash & Current Advance. Comparison of the performance of Mirae Asset Ultra Short Term Bond Fund with benchmark returns as on 31 st March, :- NAV Returns (%) Value(INR)* MAUSTBF Scheme Benchmark Crisil 1 year T-Bill** MAUSTBF Scheme Benchmark Crisil 1 year T-Bill** Since Inception(CAGR) 31st Mar 13 1,261.969 4.70% 7.09% 5.89% 12,619.69 14,146.53 13,361.42 31st Mar - 31st Mar & 1,261.969 8.36% 8.22% 8.33% - - - 31st Mar 2011-30th Mar & 1,164.609 7.26% 8.44% 6.59% - - - 31st Mar 2010-31st Mar 2011 & 1,085.825 4.76% 6.21% 3.86% - - - Index Value (31st March, ) Index value for benchmark is 1,943.85 and the value of Crisil 1 year T Bill Index is Latest Price 3,592.27 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. (VIII) SHORT TERM BOND (MASTBF), an open ended debt scheme MASTBF is an open ended debt scheme. The primary investment focus of the scheme is to seek to generate returns through an actively managed diversified portfolio of debt and money market instruments. The quarterly average net assets of the Mirae Asset Short Term Bond Fund amounted to Rs.2.48 crores for the quarter ended March 31,. March 31,, 100% of the net assets were invested in CBLO. Comparison of the performance of Mirae Asset Short Term Bond Fund with benchmark returns as on 31 st March, :- NAV Returns (%) Value(INR)* MASTBF Scheme Benchmark Crisil 1 year T-Bill ** MASTBF Scheme Benchmark Crisil 1 year T-Bill** Since Inception(CAGR) 31st Mar 13 12.119 5.40% 6.97% 5.38% 12,118.60 12,714.29 12,107.78 31st Mar - 30th Mar & 12.119 7.38% 9.10% 8.33% - - - 31st Mar 2011-30th Mar & 11.285 6.80% 8.31% 6.59% - - - 31st Mar 2010-31st Mar 2011 & 10.567 4.45% 5.12% 3.86% - - - Index Value (31st March, ) Index value for benchmark is 2,026.31 and the value of Crisil 1 year T Bill Index is Latest Price 3,592.27 Date of allotment 3-Aug-09 Benchmark Crisil Short Term Bond 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. Returns provided are of Regular Plan - Growth Option.** Crisil 1 year T-Bill Alternate Benchmark. & Absolute Returns. (IX) LIQUID (MALF), an open ended liquid scheme 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.1.27 Crores for the quarter ended March 31,. March 31,, 100% of the net assets were invested in CBLO. Comparison of the performance of Mirae Asset Liquid Fund with benchmark returns as on 31 st March, :- Returns (%) Value(INR)* NAV Scheme Crisil 1 year Scheme Crisil 1 year MALF MALF Benchmark T-Bill** Benchmark T-Bill** Since Inception(CAGR)31st Mar 13 1,198.515 3.64% 7.09% 5.89% 11,985.15 14,146.53 13,361.42 Last 7 days (Simple Annualized) till 28th Mar 1,198.515 7.85% 7.87% 10.54% - - - Last 15 days (Simple Annualized) till 28th Mar 1,198.515 7.66% 8.10% 11.55% - - - Last 30 days (Simple Annualized) till 28th Mar 1,198.515 7.48% 8.24% 9.18% - - - 31st Mar - 30th Mar & 1,198.515 7.59% 8.22% 8.33% - - - 31st Mar 2011-30th Mar & 1,113.980 7.12% 8.44% 6.59% - - - 31st Mar 2010-31st Mar 2011 & 1,039.927 4.70% 6.21% 3.86% - - - Index Value (31st March, ) Index value for benchmark is 1,943.85 and the value of Crisil 1 year T Bill Index is Latest Price 3,592.27 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. 2. FUTURE OUTLOOK OF THE The Mutual Fund industry in India is one of the fastest growing industries in the financial service sector with about 43 mutual funds currently operating in the country. The Mutual Fund Industry AUM stood at Rs.816,657 crores as on 31st March compared to 664,792 crores as on 31st March. The AUM grew with strong flows witnessed in Income Funds & FMP s. Mirae Asset Mutual Fund has presently a total of 9 schemes in its product basket with a mix of equity, liquid, debt and fund of funds schemes. The key positive news from the MF industry has been the government push for landmark reforms to spur industry growth. eign investors allowed to invest into domestic mutual funds under the QFI route Management of offshore funds have been allowed by domestic funds resulting in significant synergy in costs & resources Mirae Asset Mutual Fund is leveraging its global presence to raise funds from foreign investors in Mirae Asset Funds and for providing advisory services. With our domestic funds exhibiting robust performance track record, Mirae Asset Mutual Fund is trying to get institutional mandates as well. Mirae Asset India has been on the forefront in terms of introducing differentiated products to meet the asset allocation needs of its investors. On the distribution front too, Mirae Asset India has taken rapid steps and has tied-up with some of the best names in the distribution domain. Apart from being empanelled with the best of the best in the distribution space, the fund house has been able to ensure a prudent mix of distribution partners given that IFAs, Banks and National distributors contribute nearly equally to the business acquisition efforts. This has ensured that the distribution model is de-risked as well as equipped to quickly adapt to the changing distribution dynamics of the industry. Mirae Asset India is a fund house that has been able to turn challenges into opportunities thereby crafting a distinct position for itself within a very short period of its establishment. As we embark our journey into the new fiscal, we aim at a high octane year of growth through a combination of unique products and superior performance for the investors. 3
3. INVESTOR SERVICES In our endeavor to stay in touch with our investors regularly, we observe Mirae Asset Day on the 30 th of every month (Since Mirae Asset India had acquired the license to run the mutual fund business on the 30th November 2007). On this day, we run investor education campaigns through Mirae Asset Knowledge Academy- An investor education initiative by Mirae Asset. Investor Speak- a bimonthly newsletter for Mirae Asset Investors is also included under Mirae Asset Knowledge Academy (MAKA). MAKA entails sharing insightful and informative communiques pertaining to mutual fund investing, financial planning & financial terms being demystified for increasing investor awareness. We are using a multi-pronged approach and varied mediums including our company website, financial portals, personal finance websites and bulk emailing to engage with our investors. Considering the penetration of mutual fund and the ratio of financial literacy we are poised to generate awareness amongst investors with regards to financial planning and investments, through Investor awareness programs. In order to strengthen our online services and to make transacting with us a seamless process we have strengthened our Online Transaction services, to aid investors. Further, there have been initiatives to inform all Investors and Distributors about the latest regulatory changes that have happened in the industry. 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 financial year -13 is annexed and forms part of the Trustee Report as Annexure II. Dividend declared during the financial year -: The NAV particulars of various schemes as on 31 st March, ^ as well as the details of dividends declared during the period under review are as under:- INDIA OPPORTUNITIES Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, INDIVIDUAL Dividend Per Unit (Rs.) NON INDIVIDUAL Mirae Asset India Opportunities Fund - Regular Plan - Dividend Option 11.689 1.40 1.40 Mirae Asset India Opportunities Fund - Regular Plan Growth Option 17.522 NA NA Mirae Asset India Opportunities Fund Direct Plan Dividend Option 13.081 NA NA Mirae Asset India Opportunities Fund Direct Plan Growth Option 17.563 NA NA EMERGING BLUECHIP Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, INDIVIDUAL Dividend Per Unit (Rs.) NON INDIVIDUAL Mirae Asset Emerging Bluechip Fund - Regular Plan - Dividend Option 11.59 1.10 1.10 Mirae Asset Emerging Bluechip Fund - Regular Plan - Growth Option 12.682 NA NA Mirae Asset Emerging Blue Chip Fund - Direct Dividend 11.615 NA NA Mirae Asset Emerging Blue Chip Fund Direct Growth 12.715 NA NA INDIA-CHINA CONSUMPTION Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, INDIVIDUAL Dividend Per Unit (Rs.) NON INDIVIDUAL Mirae Asset India-China Consumption Fund - Dividend Option 11.042 1.30 1.30 Mirae Asset India-China Consumption Fund - Growth Option 12.348 NA NA Mirae Asset India China Consumption Fund Direct Dividend 12.382 NA NA Mirae Asset India China Consumption Fund Direct Growth 12.382 NA NA LIQUID Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, INDIVIDUAL Dividend Per Unit (Rs.) NON INDIVIDUAL Mirae Asset Liquid Fund- Regular Plan - Daily Dividend 1141.1985 NA NA Mirae Asset Liquid Fund- Regular Plan - Monthly Dividend 1036.534 27.24 0.00 Mirae Asset Liquid Fund- Regular Plan - Weekly Dividend 1144.0135 NA NA Mirae Asset Liquid Fund- Regular Plan - Growth 1198.5152 NA NA Mirae Asset Liquid Fund Direct Growth 1036.5893 NA NA Mirae Asset Liquid Fund Institutional Growth 1036.4764 NA NA Mirae Asset Liquid Fund Institutional Monthly 1027.1147 NA NA Mirae Asset Liquid Fund Institutional Weekly Dividend 1019.6375 NA NA CASH MANAGEMENT Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, INDIVIDUAL Dividend Per Unit (Rs.) NON INDIVIDUAL Mirae Asset Cash Management Fund - Daily Dividend Plan 1046.9692 27.00 25.95 Mirae Asset Cash Management Fund - Weekly Dividend Plan 1133.3272 29.84 28.62 Mirae Asset Cash Management Fund - Monthly Dividend 1131.7786 29.64 28.43 Mirae Asset Cash Management Fund - Growth 1253.6599 NA NA Mirae Asset Cash Management Fund Direct Daily Dividend 1053.7503 7.63 3.83 Mirae Asset Cash Management Fund Direct Growth 1253.8079 NA NA Mirae Asset Cash Management Fund Direct Monthly Dividend 1150.6243 NA NA Mirae Asset Cash Management Fund Direct Weekly Dividend 1150.7758 NA NA 4
ULTRA SHORT TERM BOND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset Ultra Short Term Bond Fund - Regular - Dividend Plan (Daily) 1202.855 NA NA Mirae Asset Ultra Short Term Bond Fund-Regular - Dividend Plan (Weekly) 1202.809 NA NA Mirae Asset Ultra Short Term Bond Fund - Regular - Dividend Plan (Monthly) 1205.7617 NA NA Mirae Asset Ultra Short Term Bond Fund - Regular - Growth Option 1261.9694 NA NA Mirae Asset Ultra Short Term Bond Fund Direct Growth 1065.5965 NA NA Mirae Asset Ultra Short Term Bond Fund Direct Monthly Dividend 1035.5868 NA NA Mirae Asset Ultra Short Term Bond Fund Direct Quarterly Dividend 1038.2831 NA NA Mirae Asset Ultra Short Term Bond Fund Direct Weekly Dividend 1037.6834 NA NA Mirae Asset Ultra Short Term Bond Fund Institutional - Dividend Plan (Quarterly) 1017.6771 40.16 34.42 Mirae Asset Ultra Short Term Bond Fund Institutional Growth Option 1064.4362 NA NA Mirae Asset Ultra Short Term Bond Fund Institutional Monthly Dividend 1034.5231 NA NA Mirae Asset Ultra Short Term Bond Fund Institutional Weekly Dividend 1036.5184 NA NA SHORT TERM BOND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details for the half year ended March 31, are as follows: Scheme Description NAV per unit March 28, Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset Short Term Bond Fund - Regular - Growth Option 12.1186 NA NA Mirae Asset Short Term Bond Fund - Regular - Quarterly Dividend 11.8243 0.2962 0.2539 Mirae Asset Short Term Bond Fund - Regular - Weekly Dividend 10.1734 0.2974 0.2549 Mirae Asset Short Term Bond Fund - Regular - Monthly Dividend 10.1673 NA NA Mirae Asset Short Term Bond Fund - Institutional - Weekly Dividend NA* 0.07 0.06 Mirae Asset Short Term Bond Fund Direct Growth 12.1262 NA NA Mirae Asset Short Term Bond Fund Direct Monthly Dividend 10.3408 NA NA Mirae Asset Short Term Bond Fund Direct Quarterly Dividend 11.8327 NA NA Mirae Asset Short Term Bond Fund Direct Weekly Dividend 10.334 NA NA NA - Dividend option not applicable for scheme / plan / option. NIL - Dividend not declared during the period under review i.e. 1 st April, to 31 st March,. ^The last working day for the financial year - was March 28,. 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. 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. During the year under review, no dividend was declared under Mirae Asset Global Commodity Stocks Fund and Mirae Asset China Advantage Fund. 4. BACKGROUND OF SPONSORS, TRUST, TRUSTEE CO. and AMC CO.: (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 11 th 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, 1908. The Trustee has entered into an Investment Management Agreement dated 11 th 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 30 th November, 2007. 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 financial services provider. With Asset Management as its core activity, Mirae Asset 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. (b) (c) Mirae Asset Trustee Company Private Limited: 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 to 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 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 Directors 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 Directors 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 office at Unit 606, 6th Floor, Windsor, off CST Road, Kalina, Santacruz (E), Mumbai - 400 098. 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, 2007. 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,, there has been no change in the composition of the Board of Directors of the AMC. As required under the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, 50% of the Directors on the Board of the AMC are independent Directors 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 (www.miraeassetmf.co.in) and shall also be available for inspection at the Head Office 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. The Balance Sheet as at 31st March, and the Revenue Account for the year ended 31st March, for the various schemes are annexed to this Report. 5
5. 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. The Scheme does not guarantee any 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 Pacific 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 diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs.100 Crores at the time of investment. From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal portfolio construction. The Scheme does not guarantee or assure any returns. 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 Cash Management Fund: 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 diversified 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. 6. SIGNIFICANT ACCOUNTING POLICIES: The Significant 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, 1996. 7. UNCLAIMED REDEMPTIONS & DIVIDENDS: Summary of No. of Investors & Corresponding amount as at March 31, : Name of the Scheme Unclaimed Redemptions Unclaimed Dividends Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors Mirae Asset India Opportunities Fund 1757548.08 65 2,637,955.51 723 Mirae Asset Global Commodity Stocks Fund 14807.33 2 - - Mirae Asset Emerging Bluechip Fund 267744.03 10 - - Mirae Asset India-China Consumption Fund 66083.20 6 - - Mirae Asset China Advantage Fund 167467.51 11 - - Mirae Asset Liquid Fund 33587.46 29 - - Mirae Asset Ultra Short Term Bond Fund - - 2,608.62 1 Mirae Asset Short Term Bond Fund 52.77 1 Mirae Asset Cash Fund 1018115.55 18 - - 8. 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 (to the extent contributed) of Rs.1 Lakh for setting up the Fund, and such other accretions / additions to 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 (www.miraeassetmf.co.in) 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. Mirae Asset Trustee Company Private Limited sd/- V. B. Haribhakti Chairman sd/- S. T. Gerela Director Place : Mumbai Date : July 8, 6
To, The Board of Trustees MUTUAL Report on the Financial Statements INDEPENDENT AUDITORS REPORT We have audited the accompanying financial statements of Mirae Asset Mutual Fund - Mirae Asset India Opportunities Fund, Mirae Asset China Advantage Fund, Mirae Asset India - China Consumption Fund, Mirae Asset Emerging Bluechip Fund and Mirae Asset Global Commodity Stocks Fund ( the Schemes ), which comprise the Balance Sheet as at March 31,, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Schemes in accordance with accounting principles generally accepted in India, including the accounting policies and standards specified in the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Scheme s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the SEBI Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In case of Balance Sheet, of the state of affairs of the Schemes as at March 31,. b) In case of Revenue Account, of the Surplus / Deficit of the Schemes for the year ended on that date. Report on Other Legal and Regulatory Requirements 1. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit. 2. The balance sheet and revenue account dealt with by this report are in agreement with the books of account. 3. In our opinion, the balance sheet and revenue account dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations. 4. In our opinion and on the basis of information and explanations given to us, the methods used to value non traded securities as at March 31, are in accordance with the SEBI Regulations and other guidelines issued by the Securities and Exchange Board of India, as applicable, and approved by the Board of Trustees, and fair and reasonable. To, The Board of Trustees MUTUAL Report on the Financial Statements INDEPENDENT AUDITORS REPORT We have audited the accompanying financial statements of Mirae Asset Mutual Fund - Mirae Asset Cash Management Fund and Mirae Asset Liquid Fund ( the Schemes ), which comprise the Balance Sheet as at March 31,, and the Revenue Account for the year then ended, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Schemes in accordance with accounting principles generally accepted in India, including the accounting policies and standards specified in the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ). This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Scheme s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the SEBI Regulations in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: a) In case of Balance Sheet, of the state of affairs of the Schemes as at March 31,. b) In case of Revenue Account, of the Surplus / Deficit of the Schemes for the year ended on that date. Report on Other Legal and Regulatory Requirements 1. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit. 2. The balance sheet and revenue account dealt with by this report are in agreement with the books of account. 3. In our opinion, the balance sheet and revenue account dealt with by this report have been prepared in conformity with the accounting policies and standards specified in the Ninth Schedule to the SEBI Regulations. 4. In our opinion and on the basis of information and explanations given to us, the methods used to value non traded securities as at March 31, are in accordance with the SEBI Regulations and other guidelines issued by the Securities and Exchange Board of India, as applicable, and approved by the Board of Trustees, are fair and reasonable. Chokshi & Chokshi Chartered Accountants FRN-101872W Nilesh Joshi Partner Membership No.114749 Place: Mumbai Date: 08/07/ Chokshi & Chokshi Chartered Accountants FRN-101872W Nilesh Joshi Partner Membership No.114749 Place: Mumbai Date: 08/07/ 7