Sponsor: Mirae Asset Global Investments Company Limited Registered offi ce: East Tower 18F, Mirae Asset CENTER 1, 67 Suha-dong, Jung-gu, Seoul, KOREA 100-210 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. 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 - 400 098. 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 Director (Independent) Director (Independent) Director (Independent) Mirae Asset Global Investments (India) Private Limited (AMC) Mr. B. N. Chakraborty Director (Independent) Mr. N. N. Jambusaria Director (Independent) Mr. Thomas Jefferson Park Director (Associate) (appointed w.e.f. April 10, ) Mr. Jisang Yoo Director & Chief Executive Offi cer (appointed w.e.f. April 10, ) Custodians: Standard Chartered Bank 23-25 Mahatma Gandhi Road, Fort, 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: S.R. Batliboi & Co., Chartered Accountants 6 th Floor, Express Towers, Nariman Point, Mumbai - 400 021. Registrar & Transfer Agent: Karvy Computershare Private Limited Karvy Plaza; H No. 8-2-596, Avenue 4, Street No.1, Banjara Hills, Hyderabad - 500 034.
5 th Annual Report - Abridged 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,. MUTUAL FUND As of March 31,, Mirae Asset Global Investments (India) Pvt. Ltd., Asset Management Company (the AMC) managed 11 schemes of Mirae Asset Mutual Fund. The break-up being 4 open-ended equity schemes, 1 open-ended fund of funds scheme and 6 open-ended liquid/ debt schemes$. The Fund declared dividends under its various Schemes and a list of such dividends, if any, forms part of the Trustee Report. Mirae Asset Mutual Fund has successfully built a solid foundation for itself in India having adopted a distinct strategy of equity focus with fi xed income as an asset allocation play; the Fund has developed a highly differentiated portfolio of funds which includes domestic funds as well country specifi c/ thematic funds. During the period, the Average Assets under management of all the schemes were Rs. 463.49 crores as at 31 st March,. Mirae Asset Mutual Fund registered an overall AUM growth of 13% against the backdrop of a very challenging business environment. Mirae Asset Mutual Fund has garnered 10% market share in Industry Equity Sales. The Industry Net Sales (April 11- March 12) has been at INR 6220 mn, with Mirae Asset Mutual Fund garnering fl ows of INR 62.2 mn (10% market share of fresh infl ows) (Source : www.amfi india.com). Investor Accounts currently stands at 57350, a 10% growth since March. SIP Accounts currently stand at 15,444 with a 14.5% growth since March (March was 13500). Mirae Asset Mutual Fund has launched new facilities like Trigger Investment Plan (TRIP), Variable Transfer Plan (VTP) and Group Investment Plan (GRIP) to offer additional options for investors. Past Performance is no guarantee of future results. Scheme Performance, Future Outlook and Operations of the Schemes 1. PERFORMANCE OF THE SCHEMES FOR THE PERIOD ENDED MARCH 31,. (I) INDIA OPPORTUNITIES FUND (MAIOF), an open ended equity oriented scheme. The investment objective of the scheme is 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.214.36 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, :- 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 - 30 th Mar & 16.176-2.79% -9.28% -10.50% 9,721 9,072 8,950 31 st Mar 2010-31 st Mar & 16.641 15.38% 8.15% 10.94% 11,538 10,815 11,094 31 st Mar 2009-31 st Mar 2010& 14.423 121.21% 92.87% 80.54% 22,121 19,287 18,054 Since Inception(CAGR) 30 th Mar 12 16.176 12.81% 3.26% 3.21% 16,176 11,366 11,343 Index Value (30th Mar, ) Index Value of BSE 200 is 1850.89 and Index value of Sensex is 17327.51 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. 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 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 1
(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.39.38 Crores for the quarter ended March 31,. Comparison of the performance of Mirae Asset Global Commodity Stocks 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 MAGCSF Scheme Benchmark Sensex** MAGCSF Scheme Benchmark Sensex** 31 st Mar - 30 th Mar & 11.161-15.67% -15.19% -24.70% 8,433 8,481 7,530 31 st Mar 2010-31 st Mar & 13.229 7.54% 15.48% 17.43% 10,754 11,548 11,743 31 st Mar 2009-31 st Mar 2010 & 12.301 95.53% 98.08% 81.03% 19,553 19,808 18,103 Since Inception(CAGR) 30 th Mar 12 11.161 3.32% 6.03% 1.55% 11,161 12,176 10,529 Index Value (30 th Mar, ) Index Value of benchmark is 113.21 and Index value of Sensex is 15454.92 Date of allotment Scheme Benchmark 20-Aug-08 MSCI Asia Pacific 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) 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, :- NAV at the end of the period (Rs. per unit) Returns Returns Returns MACAF MSCI China (INR) Sensex** 31 st Mar - 30 th Mar & 10.167-8.22% -2.77% -10.50% 31 st Mar 2010-31 st Mar & 11.078 15.75% 6.12% 10.94% Index Value (March 30, ) Index value for benchmark is 382.08 while for Sensex is 17327.51 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) 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.104.71 Crores for the quarter ended March 31,. 2
5 th Annual Report - 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 Return Return Return (Rs. per unit) MAEBF CNX Midcap Sensex** 31 st Mar - 30 th Mar & 11.569 7.73% -4.09% -10.50% Index Value (March 30, ) Index Value of CNX Midcap is 7711.40 and Index value of Sensex is 17327.51 Date of allotment 09-Jul-10 Scheme Benchmark 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. (V) 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.16.18 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, :- NAV at the end of the period Return Return Return (Rs. per unit) MAICCF Scheme Benchmark Sensex** 31 st Mar - 30 th Mar & 10.968 9.02% 12.52% -10.50% Index Value (March 30, ) Index Value of CNX Midcap is 119.06 and Index value of Sensex is 17327.51 Date of allotment 29-March 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) 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) (b) 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. 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. 0.02 Crore for the quarter ended March 31,. 3
Comparison of the performance of Mirae Asset Gilt Fund - Investment Plan with benchmark returns as on 31 st March, :- 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** 31 st Mar - 30 th Mar & 31 st Mar 2010-31 st Mar & 31 st Mar 2009-31 st Mar 2010& Since Inception(CAGR) 30 th Mar 12 Index Value (30 th March, ) Date of allotment Benchmark 11.2590 5.96% 6.30% 2.43% 10,596 10,630 10,243 10.6262 2.62% 7.41% 4.61% 10,262 10,741 10,461 10.3554 4.17% 3.09% 3.60% 10,417 10,309 10,360 11.2590 3.84% 4.12% 1.13% 11,259 11,354 10,359 Index value for benchmark is 7320.17 and the value of Crisil 10 year Gilt Index is 2083.82 6-Feb-09 I-Sec LiBex 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, :- Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* 31 st Mar - 30 th Mar & 31 st Mar 2010-31 st Mar & 31 st Mar 2009-31 st Mar 2010& Since Inception (CAGR)30th Mar 12 Index Value (30 th March, ) Date of allotment Benchmark NAV MAGF-SP Scheme Benchmark Crisil 10 year dated GoI security ** MAGF-SP Scheme Benchmark Crisil 10 year dated GoI security ** 10.9320 5.23% 7.39% 2.43% 10,523 10,739 10,243 10.3888 1.79% 4.90% 4.61% 10,179 10,490 10,461 10.2062 1.36% 6.10% 3.60% 10,136 10,610 10,360 10.9320 3.84% 5.59% 1.13% 10,932 11,864 10,359 Index value for benchmark is 4218.62 and the value of Crisil 10 year Gilt Index is 2083.82 6-Feb-09 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) 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,. 4
5 th Annual Report - Comparison of the performance of Mirae Asset Cash Management Fund with benchmark returns as on 31 st March, :- Last 7 days (Simple Annualized) till 30 th Mar Last 15 days (Simple Annualized) till 30 th Mar Last 30 days (Simple Annualized) till 30 th Mar 31 st Mar - 30 th Mar & 31 st Mar 2010-31 st Mar & 31 st Mar 2009-31 st Mar 2010 & Since Inception (CAGR) 30 th Mar 12 Index Value (30 th March, ) 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 ** 1164.173 8.64% 9.75% 8.81% 10,864 10,975 10,881 1164.173 8.47% 9.78% 8.34% 10,847 10,978 10,834 1164.173 8.21% 9.56% 9.18% 10,821 10,956 10,918 1164.173 7.55% 8.44% 6.59% 10,755 10,844 10,659 1082.476 5.11% 6.21% 3.86% 10,511 10,621 10,386 1029.869 2.19% 3.69% 3.08% 10,219 10,369 10,308 1164.173 4.84% 6.23% 4.25% 11,642 12,145 11,430 Index value for benchmark is 1796.96 and the value of Crisil 1 year T Bill Index is 3316.01 12-Jan-09 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. (VIII) 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, :- Last 7 days (Simple Annualized) till 30 th Mar Last 15 days (Simple Annualized) till 30 th Mar Last 30 days (Simple Annualized) till 30 th Mar 31 st Mar - 30 th Mar & 31 st Mar 2010-31 st Mar & 31 st Mar 2009-31 st Mar 2010 & 31 st Mar 2008-31 st Mar 2009 & Since Inception (CAGR)30th Mar 12 Index Value (30 th March, ) Date of allotment Scheme Benchmark NAV Returns (%) Returns (%) Returns (%) Value (INR)* Value (INR)* Value (INR)* Scheme Crisil 1 year Scheme Crisil 1 year MALF MALF Benchmark T-Bill** Benchmark T-Bill** 1113.98 8.22% 9.75% 8.81% 10,822 10,975 10,881 1113.98 8.08% 9.78% 8.34% 10,808 10,978 10,834 1113.98 7.82% 9.56% 9.18% 10,782 10,956 10,918 1113.98 7.12% 8.44% 6.59% 10,712 10,844 10,659 1039.927 4.70% 6.21% 3.86% 10,470 10,621 10,386 993.2814 1.78% 3.69% 3.08% 10,178 10,369 10,308 975.8787-3.06% 8.81% 7.28% 9,694 10,881 10,728 1113.98 2.69% 6.81% 5.29% 11,140 13,078 12,334 Index value for benchmark is 1796.96 and the value of Crisil 1 year T Bill Index is 3316.01 5-Mar-08 Crisil Liquid Fund Index 5
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) 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. 3.08 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, :- 31 st Mar - 30 th Mar & 31 st Mar 2010-31 st Mar & 31 st Mar 2009-31 st Mar 2010 & 31 st Mar 2008-31 st Mar 2009 & Since Inception (CAGR) 30 th Mar 12 Index Value (30 th March, ) Date of allotment Scheme Benchmark 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** 1164.609 7.26% 8.44% 6.59% 10,726 10,844 10,659 1085.825 4.76% 6.21% 3.86% 10,476 10,621 10,386 1036.456 2.05% 3.69% 3.08% 10,205 10,369 10,308 1015.671 0.87% 8.81% 7.28% 10,087 10,881 10,728 1164.609 3.81% 6.81% 5.29% 11,646 13,078 12,334 Index value for benchmark is 1796.96 and the value of Crisil 1 year T Bill Index is 3316.01 5-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) 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, :- NAV Returns (%) Returns (%) Returns (%) MASTBF Scheme Benchmark Crisil 1 year T-Bill ** 31 st Mar - 30 th Mar & 11.2853 6.80% 8.28% 6.59% 31 st Mar 2010-31st Mar & 10.567 4.45% 5.12% 3.86% Index Value (30 th Mar, ) Date of allotment Benchmark Index value for benchmark is 1858.13 and the value of Crisil 1 year T Bill Index is 3316.01 3-Aug-09 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 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. Mirae Asset 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 6
5 th Annual Report - Some of the select equity scheme(s) of the Fund have continued to deliver track record of relatively 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. 3. 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 fi nancial 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 -12 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 30 th March, ^ as well as the details of dividends declared during the period under review are as under:- INDIA OPPORTUNITIES FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description NAV per unit March 30, ^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset India Opportunities Fund - Regular Plan - Dividend Option 12.044 1.50 1.50 Mirae Asset India Opportunities Fund - Regular Plan - Growth Option 16.176 NA NA NA - Dividend option not applicable for scheme / plan / option. CASH MANAGEMENT FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description NAV per unit March 30, ^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset Cash Management Fund - Regular Plan - Dividend Option - Daily 1039.2350 53.4042 51.5178 Mirae Asset Cash Management Fund - Regular Plan - Dividend Option - Weekly 1123.7591 30.1092 28.8795 Mirae Asset Cash Management Fund - Regular Plan - Dividend Option - Monthly 1123.5994 31.5286 30.2413 Mirae Asset Cash Management Fund - Regular Plan - Growth Option 1164.1730 NA NA NA - Dividend option not applicable for scheme / plan / option. SHORT TERM BOND FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description NAV per unit March 30, ^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset Short Term Bond Fund - Regular Plan - Growth Option 11.2853 NA NA Mirae Asset Short Term Bond Fund - Regular Plan - Dividend Option - Weekly Reinvestment 10.0905 0.5479 0.4747 Mirae Asset Short Term Bond Fund - Regular Plan - Dividend Option - Monthly - Reinvestment 10.0966 0.5549 0.4811 Mirae Asset Short Term Bond Fund - Regular Plan - Dividend Option- Quarterly Reinvestment 11.0109 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, to 30 th March,. 7
LIQUID FUND Plan / Option wise per unit Net Asset Values (NAV) and Dividend details are as follows: Scheme Description NAV per unit March 30, ^ Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Mirae Asset Liquid Fund - Regular Plan - Growth Option 1113.9801 NA NA Mirae Asset Liquid Fund - Regular Plan - Dividend Option - Daily Reinvestment 1060.7055 Nil Nil Mirae Asset Liquid Fund - Regular Plan - Dividend Option - Weekly Reinvestment 1063.3363 Nil Nil Mirae Asset Liquid Fund - Regular Plan- Dividend Option - Monthly Reinvestment 1029.1217 27.3539 Nil Mirae Asset Liquid Fund - Institutional Plan- Dividend Option - Daily Reinvestment 1000.0500 0.3546 Nil NA - Dividend option not applicable for scheme / plan / option. NIL - Dividend not declared during the period under review i.e. 1 st April, 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 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 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 fi nancial 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 signifi cant activities of the group include Alternate Investment including Private Equity, Venture Capital and Real Estate. (b) 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 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. (c) 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 - 400098. 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. However, the following changes occurred w.e.f. April 10, : 8
5 th Annual Report - 1. Mr. Cheon Woong Park has ceased to be the Director from the Board of the AMC with effect from April 10,. 2. Mr. Thomas Jefferson Park has been appointed as a Director (Associate) on the Board of the AMC with effect from April 10,. 3. Mr. Arindam Ghosh has ceased to be the Director 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, and 4. Mr. Jisang Yoo has been appointed as a Director (Associate) on the Board of the AMC with effect from April 10,. He has 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 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 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. 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. 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 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 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 benefi t 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: 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. 9
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 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, 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 1102110.22 72 2095740.89 519 Mirae Asset Global Commodity Stocks fund 495369.58 32 - - Mirae Asset Emerging Bluechip Fund 30324.72 4 - - Mirae Asset India-China Consumption Fund 19423.42 3 - - Mirae Asset China Advantage Fund 127986.45 8 - - *Mirae Asset Interval Fund- Quarterly Series Plan - II 1629.07 1 - - Mirae Asset Liquid Fund 18995.68 1 - - Mirae Asset Ultra Short Term Bond fund 395.07 2 - - *Mirae Asset Interval Fund - Quarterly Series Plan - II was wound up on June 8, 2009. 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 fl uctuations 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 Offi ce 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. For Mirae Asset Trustee Company Private Limited Sd/- V. B. Haribhakti Chairman Sd/- S. T. Gerela Director Place : Mumbai Date : July 2,. 10
5 th Annual Report - Auditors Report INDIA OPPORTUNITIES FUND To, The Trustees of MUTUAL FUND 1. We have audited the attached balance sheet of Mirae Asset Mutual Fund Mirae Asset India Opportunities Fund ( the Scheme ) as at 31 March and also the revenue account and cash flow statement for the year ended on that date annexed thereto. These fi nancial statements are the responsibility of the management of Mirae Asset Global Investments (India) Private Limited, the Scheme s asset manager. Our responsibility is to express an opinion on these fi nancial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. 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. ii. The balance sheet, revenue account and cash flow statement dealt with by this report are in agreement with the books of account. iii. 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 Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and on the basis of information and explanations given to us, the methods used to value non traded securities as at 31 March 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 Directors of Mirae Asset Trustee Company Private Limited, and are fair and reasonable. v. In our opinion, and to the best of our information and according to the explanations given to us, the said financial statements give the information required by the SEBI Regulations as applicable, and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the balance sheet of the state of affairs of the Scheme as at 31 March ; b) in the case of the revenue account of the surplus for the year ended on that date; and c) in the case of the cash fl ow statement, of the cash fl ows for the year ended on that date. For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Surekha Gracias Partner Membership No: 105488 Mumbai, 2 July Auditors Report EMERGING BLUECHIP FUND To, The Trustees of MUTUAL FUND 1. We have audited the attached balance sheet of Mirae Asset Mutual Fund Mirae Asset Emerging Bluechip Fund ( the Scheme ) as at 31 March and also the revenue account for the year ended on that date annexed thereto. These financial statements are the responsibility of the management of Mirae Asset Global Investments (India) Private Limited, the Scheme s asset manager. Our responsibility is to express an opinion on these fi nancial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. 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. ii. The balance sheet and revenue account dealt with by this report are in agreement with the books of account. iii. 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 Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and to the best of our information and according to the explanations given to us, the said financial statements give the information required by the SEBI Regulations as applicable, and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the balance sheet of the state of affairs of the Scheme as at 31 March ; and b) in the case of the revenue account of the surplus for the year ended on that date. For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Surekha Gracias Partner Membership No: 105488 Mumbai, 2 July 11
Auditors Report GLOBAL COMMODITY STOCKS FUND Auditors Report CHINA ADVANTAGE FUND To, The Trustees of MUTUAL FUND 1. We have audited the attached balance sheet of Mirae Asset Mutual Fund Mirae Asset Global Commodity Stocks Fund ( the Scheme ) as at 31 March and also the revenue account for the year ended on that date annexed thereto. These fi nancial statements are the responsibility of the management of Mirae Asset Global Investments (India) Private Limited, the Scheme s asset manager. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. 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. ii. The balance sheet and revenue account dealt with by this report are in agreement with the books of account. iii. 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 Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and to the best of our information and according to the explanations given to us, the said financial statements give the information required by the SEBI Regulations as applicable, and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the balance sheet of the state of affairs of the Scheme as at 31 March ; and b) in the case of the revenue account of the surplus for the year ended on that date. To, The Trustees of MUTUAL FUND 1. We have audited the attached balance sheet of Mirae Asset Mutual Fund Mirae Asset China Advantage Fund ( the Scheme ) as at 31 March and also the revenue account for the year ended on that date annexed thereto. These financial statements are the responsibility of the management of Mirae Asset Global Investments (India) Private Limited, the Scheme s asset manager. Our responsibility is to express an opinion on these fi nancial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. We report that: i. 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. ii. The balance sheet and revenue account dealt with by this report are in agreement with the books of account. iii. 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 specifi ed in the Ninth Schedule to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 ( the SEBI Regulations ). iv. In our opinion, and to the best of our information and according to the explanations given to us, the said fi nancial statements give the information required by the SEBI Regulations as applicable, and give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the balance sheet of the state of affairs of the Scheme as at 31 March ; and b) in the case of the revenue account of the defi cit for the year ended on that date. For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Surekha Gracias Partner Membership No: 105488 Mumbai, 2 July For S. R. Batliboi & Co. Firm Registration No. 301003E Chartered Accountants per Surekha Gracias Partner Membership No: 105488 Mumbai, 2 July 12