Mirae Asset Mutual Fund Annual Report 2014-15 (Abridged)

96 Pages·2015·0.88 MB·English

Mirae Asset Mutual Fund
Annual Report 2014-15 (Abridged)
Board of Directors Asset Management Company:
Mirae Asset Trustee Company Private Limited Mirae Asset Global Investments (India)
Private Limited
Mr. V. B. Haribhakti Chairman (Independent) Registered & Corporate Office:
Unit No.606, Windsor Building,
Mr. S. T. Gerela Director (Independent)
Off. C.S.T. Road, Kalina, Santacruz (East),
Mr. K. Ramasubramanian Director (Independent) Mumbai - 400 098.
CIN: U65993MH2006FTC165663
Mr. M. L. Soneji Director (Independent)
Custodians:
Standard Chartered Bank
23-25 Mahatma Gandhi Road,
Mirae Asset Global Investments (India) Fort, Mumbai - 400 001.
Private Limited (AMC)
Mr. B. N. Chakraborty Director (Independent) Deutsche Bank AG,
Sir Hazarimal Somani Marg,
Mr. Yogesh Chadha Director (Independent)
Fort, Mumbai - 400 001
Mr. Jisang Yoo Director (Associate) & (appointed in place of Citibank NA
Chief Executive Officer with effect from July 06, 2015)
Mr. Thomas Jefferson Park Director (Associate)
Statutory Auditor:
Chokshi & Chokshi
15/17, Raghavji ‘B’ Bldg.,
Gowalia Tank, Off. Kemps Corner,
Sponsor: Mumbai - 400 036.
Mirae Asset Global Investments Company Limited
Registered office:
Registrar & Transfer Agent:
East Tower 18F,
Mirae Asset CENTER 1, Karvy Computershare Private Limited
Karvy Selenium, Tower B, Plot No. 31 & 32,
67 Suha-dong, Jung-gu,
Financial District, Gachibowli,
Seoul, KOREA 100-210
Hyderabad - 500 008, India.
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.
CIN: U65191MH2007FTC170231
MIRAE ASSET MUTUAL FUND BRANCH OFFICES:
l Ahmedabad-201, 2nd Floor, Abhijeet - I, Mithakhali Circle, Near HDFC Bank, Ahmedabad - 380009. Tel-079-44227777. l Bangalore-Unit Nos. 308, 2nd
Floor, Prestige Meridian-II, No.30, M.G. Road, Bangalore - 560001. Tel-080-44227777 l Chennai-Premises No. 206, Challa Mall, 11 -11 A, Sir Theyagaraya
Road, T. Nagar, Chennai - 600017. Tel-044-44227777. l Kanpur-1st Floor, Shop No.111, KAN Chambers, 14/113, Civil Lines, Kanpur, Uttar Pradesh - 208001.
Tel-0512-6510007.l Kolkata-Krishna Building, Room No.510, 5th Floor, 224 A J C Bose Road, Beck Bagan Junction, Kolkata - 700017.Tel-033-44227777.
l Mumbai (Corporate Office)-Unit No. 606, 6th Floor, Windsor Bldg., Off. CST Road, Kalina, Santacruz (E), Mumbai - 400 098.Tel-022-67800300.
l New Delhi-Office No.1010, 10th Floor, Indraprakash Building, 21 Barakhamaba Road, Connaught Place, New Delhi - 110001. Tel-011-44227777.
l Pune-74, 4th Floor, Sreenath Plaza, Dnyaneshwar Paduka Chowk, F C Road, Shivaji Nagar, Pune - 411005. Tel-020-40177300.
Dear Investor,
Mirae Asset Mutual Fund recorded an impressive growth of more than 130% in AUM in FY’14-15 and has
continued its strong show in the first quarter of FY’15-16. The AUM of the AMC crossed Rs. 2,000 crores
and now stands at Rs. 2,130 crores (as on June 30, 2015). The overall Mutual Fund Industry AUM has been
growing by 25-30% during the same period. Mirae Asset Mutual Fund has now been recognized as one of
the fastest growing AMC by market participants.
The strong increase in AUM has seen our flagship funds Mirae Asset India Opportunities Fund (which
completed 7 years in April 2015) and Mirae Asset Emerging Bluechip Fund (which completed 5 years in July
2015) cross important AUM milestones. The AUM of these funds is now close to Rs. 1,200 crores and Rs.
800 crores respectively as on June 30, 2015. We have also now starting seeing some flows into our fixed
income funds.
We are committed to follow our Core Value of “Client First”. The fund house continues its endeavour
to generate risk adjusted performance for its investors. The growth in assets has been driven by the fund
performance displayed by its equity schemes. Our flagship equity scheme, Mirae Asset India Opportunities
Fund has outperformed its benchmark S&P BSE 200 by close to 10% while Mirae Asset Emerging Bluechip
Fund outpacing its benchmark CNX Midcap by close to 20% during the same period (June 30, 2014 - June
30, 2015). The Fund house has also rewarded its investors by declaring 6th consecutive dividend in Mirae
Asset India Opportunities Fund (based on financial year) and 3rd dividend in Mirae Asset Emerging Bluechip
Fund. Our Investor folio count has crossed 1 lakh mark and has nearly doubled in the last 1 year. Mirae
Asset SIP book has seen more than 150% increase in the last 1 year and now is almost 45% of the folio
count. We have redesigned the Mirae Asset India website and enhanced our online transaction through the
website to make it more user friendly and provide ease of navigation. We continue to update our investors on
our funds, markets and important events and also share insightful articles on investor education through our
Mirae Asset Knowledge Academy.
On the distribution front too, Mirae Asset India has taken steps and has tied-up with some of the best
names in the distribution domain. The fund house has ensured a prudent mix of distribution partners from
IFAs (currently around 6,000 IFA distributors empanelled), Banks and National distributors. This has ensured
that the distribution model is de-risked as well as equipped to take advantages of market opportunities. With
both the flagship funds achieving important AUM and performance track record milestones, it will make them
eligible for qualification by many leading banks and wealth outfits, which may help in faster AUM growth
in the next financial year. We continue to engage with all our partners to grow the business and we have
launched an exclusive website to help them grow the business.
Mirae Asset Mutual Fund is working on 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.
We have launched an asset allocation based equity oriented scheme called Mirae Asset Prudence Fund in
July this year and we hope to add another equity fund before year end.
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 performance for the investors. Our goal in the long term is to become one of major
players in the Indian Mutual Fund Industry with a complete product basket across asset classes and deliver
risk adjusted returns to our investors.
Thanking you,
Yours sincerely,

Jisang Yoo
Chief Executive Officer
TRUSTEE REPORT OF MIRAE ASSET MUTUAL FUND FOR THE YEAR ENDED MARCH 31, 2015.
Dear Unit holder,
The Trustee Company presents its Eighth report and the audited financial statements of the Schemes of Mirae Asset Mutual Fund (the “Fund”), for the year ended March 31, 2015.
MIRAE ASSET MUTUAL FUND
As of March 31, 2015, Mirae Asset Global Investments (India) Pvt. Ltd., Asset Management Company (the AMC) managed 8 schemes of Mirae Asset Mutual Fund. The break-
up of the schemes are 4 open-ended equity schemes, 1 open-ended fund of funds scheme and 3 open-ended liquid / debt schemes. The AMC also managed one close ended
fund viz. Mirae Asset Fixed Maturity Plan – Series I - 368 Days which got matured in February 2015.
Among the key achievements, Mirae Asset Mutual Fund recorded an impressive growth of 136% in FY 14-15 with the Assets Under Management (AUM) growing from Rs.787.91
crores (as on 31st March, 2014) to Rs. 1,858.46 crores (as on March 31st March, 2015). The overall Mutual Fund Industry AUM grew by 30% during the financial year 2014-15.
We have also seen some flows into our fixed income funds.
The above incremental growth in assets has been driven by 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 15.06% while Mirae Asset Emerging Bluechip Fund outpacing its
benchmark CNX Midcap by 16.97% during the same period. Both the Mirae Asset India Opportunities Fund and Mirae Asset Emerging Bluechip Fund have received various
recognitions from leading publications and rating agencies. Both the funds have achieved important AUM milestones, which will make them qualified to be sold by many leading
banks and wealth outfits, which may help in faster AUM growth in the next financial year.
Our investor folio count currently stands at 98,938 (as on 31st March, 2015) way above than the 56,806 folios as on 31st March 2014. Mirae Asset SIP book stands at 43,957
accounts (as on 31st March, 2015) with a staggering 173% growth since March 2014 where the count stood at 16,098.
The Fund house also declared dividends under its various equity schemes as highlighted below. It was the 6th consecutive dividend in Mirae Asset India Opportunities Fund
(financial year wise).
Dividend Amount
Fund Name Record Date
(Rs. per unit)
Mirae Asset India Opportunities Fund-Regular-Dividend 1.60 13/02/2015
Mirae Asset Emerging Bluechip Fund-Regular-Dividend 1.80 08/12/2014
Mirae Asset India China Consumption Fund - Regular-Dividend 2.00 18/03/2015
Past Performance is no guarantee of future results.
Scheme Performance, Future Outlook and Operations of the Schemes
1. PERFORMANCE AND OPERATIONS OF THE SCHEMES:
(I) MIRAE ASSET INDIA OPPORTUNITIES FUND (MAIOF), an open ended equity oriented scheme
The performance of Mirae Asset India Opportunities Fund as on 31st March, 2015 is as follows:
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 18.32% 46.99% 26.06% 17.58%
Benchmark Index - S&P BSE 200 9.31% 31.93% 17.89% 9.96%
Date of allotment April 04, 2008
Direct Plan - Growth Option 28.70% 48.35% - -
Benchmark Index - S&P BSE 200 17.87% 31.93% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme has always outperformed the benchmark returns over 1 year, 3 years, 5 years and since inception returns. The Scheme had outperformed its benchmark
on 1 year basis majorly due to better Stock picking in Auto, Cements, Consumer Durables, Petroleum Products, Banks and Finance sector. Also, the performance over 5
years and since inception continues to be healthy.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
NAV per unit Dividend Per Unit (in Rs.)
Scheme Description
March 31, 2015 INDIVIDUAL NON INDIVIDUAL
Mirae Asset India Opportunities Fund - Regular - Dividend Plan 18.081 1.6 1.6
Mirae Asset India Opportunities Fund - Regular - Growth Plan 32.427 NA NA
Mirae Asset India Opportunities Fund - Direct - Dividend Plan 24.685 NIL NIL
Mirae Asset India Opportunities Fund -Direct - Growth Plan 33.14 NA NA
NA - Not Applicable
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 in an endevour to generate consistent outperformance over the benchmark. The investment strategy is focused on high
quality businesses, which can withstand current domestic and global headwinds.
The net assets of Mirae Asset India Opportunities Fund stood at Rs. 1178.94 Crores as at March 31, 2015 as against Rs. 413.59 Crores as at March 31, 2014 and out of
the total net assets as on March 31, 2015, 98.91% was invested in equity shares, 0.82% in mutual fund units and balance in CBLO.
The Scheme has flexibility to invest between 65% to 100% of its net asset in Indian Equities and Equity Related Securities and upto 35% of its net assets in Money market
instruments/debt securities Instruments (Including upto 25% of corpus in securitized debt). The exact mix of equity and debt is a function of equity market valuation and
outlook, interest rates and the outlook for the same.
(II) MIRAE ASSET EMERGING BLUECHIP FUND (MAEBF), an open ended equity fund
The performance of Mirae Asset Emerging Bluechip Fund as on 31st March, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 25.47% 70.38% 36.18% -
Benchmark Index - CNX Midcap 9.95% 50.96% 19.00% -
Date of allotment 9th July, 2010
Direct Plan - Growth Option 40.23% 72.10% - -
Benchmark Index - CNX Midcap 20.21% 50.96% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
1
The Scheme has always outperformed the benchmark returns over 1 year, 3 years, 5 years and since inception returns. The Scheme had outperformed its benchmark on
1 year basis majorly due to better Stock picking in Cement, Banks, Consumer Durables & Finance Sector. Also the performance since inception continues to be healthy.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015 INDIVIDUAL NON INDIVIDUAL
Mirae Asset Emerging Bluechip Fund - Regular - Dividend Option 22.637 1.8 1.8
Mirae Asset Emerging Bluechip Fund - Regular - Growth Option 29.244 NA NA
Mirae Asset Emerging Bluechip Fund - Direct - Dividend Option 27.352 NIL NIL
Mirae Asset Emerging Bluechip Fund - Direct - Growth Option 29.938 NA NA
NA - Not Applicable
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 in an endevour to generate consistent outperformance over the benchmark. The investment
strategy is focused on high quality businesses, which can withstand current domestic and global headwinds.
The net assets of Mirae Asset Emerging Bluechip Fund stood at Rs. 779.82 Crores as at March 31, 2015 as against Rs. 230.54 Crores as at March 31, 2014 and out of
the total net assets as on March 31, 2015, 99.10% of the net assets were invested in equity shares and balance in CBLO and others.
The Scheme has flexibility to invest between 65% to 100% of its net asset 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; upto 35% of its net assets in Other Indian Equities
and Equity Related Securities and; upto 35% of its net asset in Money market instruments (including CBLO)/debt securities Instruments (Including upto 20% of corpus in
securitized debt). The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the outlook for the same.
(III) MIRAE ASSET INDIA-CHINA CONSUMPTION FUND (MAICCF), an open ended equity oriented scheme
The performance of Mirae Asset India-China Consumption Fund as on 31st March, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 22.24% 45.22% 26.78% -
Benchmark Index - S&P India & China weighted Index 19.69% 28.25% 21.58% -
Date of allotment 29th March, 2011
Direct Plan - Growth Option 26.76% 46.94% - -
Benchmark Index - S&P India & China weighted Index 19.79% 28.25% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme has always outperformed the benchmark returns over 1 year, 3 years, 5 years and since inception returns. The Scheme had outperformed its benchmark on
1 year basis majorly due to Selection in Indian Stocks especially in the Sectors of Consumer Discretionary, Consumer Staples, Energy and Materials.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015 INDIVIDUAL NON INDIVIDUAL
Mirae Asset India-China Consumption Fund - Regular - Dividend Option 16.335 2.0 2.0
Mirae Asset India-China Consumption Fund - Regular - Growth Option 22.367 NA NA
Mirae Asset India-China Consumption Fund - Direct - Dividend Option 22.897 NIL NIL
Mirae Asset India-China Consumption Fund - Direct - Growth Option 22.929 NA NA
NA - Not Applicable
The fund philosophy 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 net assets of Mirae Asset India-China Consumption Fund stood at Rs. 37.25 Crores as at March 31, 2015 as against Rs. 19.89 Crores as at March 31, 2014 and out
of the total net assets as on March 31, 2015, 92.55 % of the net assets were invested in equity shares, 6.04% in ADR and balance in CBLO.
The Scheme has flexibility to invest between 65% to 90% of its net asset in Indian Equities and Equity Related Securities of companies that are likely to benefit either
directly or indirectly from consumption led demand; upto 10% to 35% of its net assets in Chinese Equities and Equity Related Securities of companies that are likely to
benefit either directly or indirectly from consumption led demand and; upto 25% of its net asset in Money market instruments (including CBLO) / debt securities Instruments
and/or units of debt/liquid schemes of domestic Mutual Funds. The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the
outlook for the same.
(IV) MIRAE ASSET GLOBAL COMMODITY STOCKS FUND (MAGCSF), an open ended equity fund
The performance of Mirae Asset Global Commodity Stocks Fund as on 31st March, 2015 is as follows:
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 0.96% -11.07% -4.01% -2.32%
Benchmark@ 0.64% -6.07% -7.85% -3.90%
Date of allotment August 20, 2008
Direct Plan - Growth Option -6.80% -10.20% - -
Benchmark Index@ -11.33% -6.07% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
@ Benchmark Index: S&P PAN Asia Large Midcap Commodity and Resources Capped Index.
The Scheme has outperformed the benchmark for since inception returns. For 1 year returns the Scheme has underperformed the benchmark and for 3 and 5 years returns
The Scheme had underperformed its benchmark on 1 year basis majorly due to Stock Selection in Australia and South Korea, non-presence in about 10% of benchmark
stock countries due to high cost of trading and some impact due to slight under Allocation in the Indian Market. However, the performance over 5 years and since inception
continues to beat the benchmark.
2
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015 INDIVIDUAL NON INDIVIDUAL
Mirae Asset Global Commodity Stocks Fund - Regular - Dividend Option 10.654 NIL NIL
Mirae Asset Global Commodity Stocks Fund -Regular -Growth Option 10.654 NA NA
Mirae Asset Global Commodity Stocks Fund - Direct - Dividend Option 10.783 NIL NIL
Mirae Asset Global Commodity Stocks Fund - Direct - Growth Option 10.829 NA NA
The Fund offers investors access to commodity as an asset class by way of investments into commodity stocks of leading global companies involved directly or indirectly
with the commodities business. The fund primarily invests in stocks in Asia Pacific markets and emerging markets thus offering investors an avenue to diversify beyond
local boundaries.
The net assets of Mirae Asset Global Commodity Stocks Fund stood at Rs. 8.98 Crores as at March 31, 2015 as against Rs. 13.15 Crores as at March 31, 2014 and out
of the total net assets as on March 31, 2015, 99.28 % of the net assets were invested in equity shares and balance in CBLO.
The Scheme has flexibility to invest between 65% to 100% of its net asset in Asia Pacific and/or Emerging Markets Equities and Equity Related Securities (excluding Indian
equities and equities related securities) of companies that are engaged in commodity and commodities related sectors/sub sectors/ industries; upto 35% of its net assets
in Indian Equities and Equity Related Securities, including but not limited to those that are engaged in commodity and commodities related sectors/ sub sectors/industries
and; upto 35% of its net asset in Money market instruments/debt securities Instruments (including upto 25% of corpus in securitized debt). The exact mix of equity and
debt is a function of equity market valuation and outlook, interest rates and the outlook for the same.
(V) MIRAE ASSET CHINA ADVANTAGE FUND (MACAF), an open ended fund of funds scheme
The performance of Mirae Asset China Advantage Fund as on 31st March, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 7.95% 16.75% 14.13% 9.57%
Benchmark Index - MSCI China (INR) 7.82% 25.36% 14.66% 9.23%
Date of allotment November 05, 2009
Direct Plan - Growth Option 11.78% 17.79% - -
Benchmark Index - MSCI China (INR) 12.32% 25.36% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme has always outperformed the benchmark for since inception returns and 5 years, whereas over 1 year and 3 years the Scheme has underperformed the
benchmark. For Direct Plan - Growth Option, the Scheme has always underperformed the benchmark The Scheme had underperformed its benchmark on 1 year basis
due to sharp liquidity driven rally where many stock moved up without much improvement in underlying businesses. However, the performance over 5 years and since
inception continues to be healthy.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015 INDIVIDUAL NON INDIVIDUAL
Mirae Asset China Advantage Fund - Regular - Dividend Option 15.119 NIL NIL
Mirae Asset China Advantage Fund - Regular - Growth Option 15.119 NA NA
Mirae Asset China Advantage Fund - Direct - Dividend Option 15.354 NIL NIL
Mirae Asset China Advantage Fund - Direct - Growth Option 15.370 NA NA
The fund gives investors an opportunity to invest in China companies with high investment potential. The emphasis on market leaders gives the fund a bias towards large/
mid-cap names. Fund is positioned to take advantages of the growth opportunities related to the secular and structural changes in China.
The net assets of Mirae Asset China Advantage Fund stood at Rs. 19.55 Crores as at March 31, 2015 as against Rs. 26.57 Crores as at March 31, 2014 and out of the
total net assets as on March 31, 2015, 99.98 % of the net assets were invested in equity shares and balance in CBLO and others.
The Scheme has flexibility to invest between 80% to 100% of its net asset 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 having their area of primary activity in China and Hong Kong; and
upto 0% to 20% in Money market instruments/debt securities Instruments and/or units of debt/liquid schemes of domestic Mutual Funds.
(VI) MIRAE ASSET CASH MANAGEMENT FUND (MACMF), AN OPEN ENDED LIqUID FUND
The performance of Mirae Asset Cash Management Fund as on 31st March, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 6.48% 8.60% 8.26% 7.48%
Benchmark Index - CRISIL Liquid Fund Index 7.49% 8.98% 8.89% 8.26%
Date of allotment January 12, 2009
Direct Plan - Growth Option 8.63% 8.87% - -
Benchmark Index - CRISIL Liquid Fund Index 9.11% 8.98% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme has marginally underperformed the benchmark over 1 year, 3 years, 5 years and since inception returns The Scheme underperformed its benchmark due to
Underweight on high yielding Commercial Papers and Overweight on Certificate of Deposits, however the fund’s credit quality is better than the benchmark index.
The scheme is meant for investors to deploy their funds for a short period of time. The intention is to offer superior returns at lower level of risk while maintaining the liquidity profile.
The details of the dividend declared by the fund during the financial year 2014 -15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015
INDIVIDUAL NON INDIVIDUAL
Mirae Asset Cash Management Fund - Regular - Daily Dividend Plan 1056.9340 62.8143 59.2816
Mirae Asset Cash Management Fund - Regular - Weekly Dividend Plan 1143.8779 67.2815 63.4879
Mirae Asset Cash Management Fund - Regular - Monthly Dividend 1143.9672 67.6808 63.8750
Mirae Asset Cash Management Fund - Regular - Growth 1477.5816 NA NA
Mirae Asset Cash Management Fund - Direct - Daily Dividend 1065.9672 65.2523 61.5694
Mirae Asset Cash Management Fund - Direct - Growth 1483.8273 NA NA
Mirae Asset Cash Management Fund - Direct - Weekly Dividend 1195.6297 68.3229 64.4594
3
The net assets of Mirae Asset Cash Management Fund stood at Rs. 65.45 Crores as at March 31, 2015 as against Rs. 20.52 Crores as at March 31, 2014 and out of the
total net assets as on March 31, 2015, 97.04 % of the net assets were invested in money market and balance in CBLO and others.
The Scheme has flexibility to invest between 20% to 100% of its net asset Money Market Instruments (including Cash, Reverse Repo, CBLO) MIBOR & MIBOR linked
instruments; and upto 0% to 80% in Debt Instruments with residual maturity and repricing tenor upto 91 days only.
(VII) MIRAE ASSET ULTRA SHORT TERM BOND FUND (MAUSTBF), an open ended debt fund
The performance of Mirae Asset Ultra Short Term Bond Fund as on 31st March, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 5.60% 7.78% 8.07% 7.24%
Benchmark Index - CRISIL Liquid Fund Index 7.67% 8.98% 8.89% 8.26%
Date of allotment March 05, 2008
Direct Plan - Growth Option 8.69% 8.69% - -
Benchmark Index - CRISIL Liquid Fund Index 9.11% 8.98% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme has marginally underperformed the benchmark over 1 year, 3 years, 5 years and since inception returns. The Scheme underperformed its benchmark as it
had lower average maturity and due to Underweight on high yielding Commercial Papers and Overweight on Certificate of Deposits, however the fund’s credit quality is
better than the benchmark index.
The 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 seek to generate
reasonable returns commensurate with low risk. The scheme will invest in money market and other debt securities and shall maintain high liquidity for the purpose of
meeting the liquidity requirements of the investors.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015
INDIVIDUAL NON INDIVIDUAL
Mirae Asset Ultra Short Term Bond Fund - Regular - Growth 1470.3081 NA NA
Mirae Asset Ultra Short Term Bond Fund - Regular - Monthly Dividend 1404.8496 NIL NIL
Mirae Asset Ultra Short Term Bond Fund - Regular - Daily Dividend 1401.4780 NIL NIL
Mirae Asset Ultra Short Term Bond Fund - Regular - Weekly Dividend 1401.3832 NIL NIL
Mirae Asset Ultra Short Term Bond Fund - Institutional - Growth Option 1240.0925 NA NA
Mirae Asset Ultra Short Term Bond Fund - Institutional - Dividend Plan (Quarterly) 1037.9939 59.2856 55.9330
Mirae Asset Ultra Short Term Bond Fund - Institutional - Monthly Dividend 1081.3006 54.3839 51.3224
Mirae Asset Ultra Short Term Bond Fund - Institutional - Weekly Dividend 1102.5418 55.2421 52.1288
Mirae Asset Ultra Short Term Bond Fund - Institutional - Daily Dividend 1013.6682 54.6104 51.5306
Mirae Asset Ultra Short Term Bond Fund - Direct - Growth 1259.6104 NA NA
Mirae Asset Ultra Short Term Bond Fund - Direct - Quarterly Dividend 1060.6572 66.4107 62.6453
Mirae Asset Ultra Short Term Bond Fund - Direct - Daily Dividend 1140.0232 NIL NIL
Mirae Asset Ultra Short Term Bond Fund - Direct - Weekly Dividend 1225.4682 NIL NIL
The net assets of Mirae Asset Ultra Short Term Bond Fund stood at Rs. 34.83 Crores as at March 31, 2015 as against Rs. 20.97 Crores as at March 31, 2014 and out of
the total net assets as on March 31, 2015, 41.46 % of the net assets were invested in money market instruments, 58.44% in CBLO.
The Scheme has flexibility to invest between 50% to 100% of its net asset in Money Market Instruments and debt instruments with residual maturity and repricing tenor
not exceeding 1 year; and upto 50% in Debt Instruments with residual maturity and repricing tenor exceeding 1 year* (including Securitized Debt upto 50% of net assets).
(VIII) MIRAE ASSET SHORT TERM BOND FUND (MASTBF), an open ended debt fund
The performance of Mirae Asset Short Term Bond Fund as on 31st March, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan - Growth Option 6.34% 8.12% 7.85% 6.95%
Benchmark Index - CRISIL Short Term Bond Fund Index 7.85% 10.33% 9.40% 8.31%
Date of allotment August 03, 2009
Direct Plan - Growth Option 8.70% 9.00% - -
Benchmark Index - CRISIL Short Term Bond Fund Index 9.43% 10.33% - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme has always outperformed the benchmark returns over 1 year, 3 years, 5 years and since inception returns. The Scheme underperformed its benchmark as
it had lower average maturity and due to underweight on high yielding Commercial Papers and Overweight on Certificate of Deposits, however the fund’s credit quality is
better than the benchmark.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
March 31, 2015
INDIVIDUAL NON INDIVIDUAL
Mirae Asset Short Term Bond Fund - Regular - Growth 14.1593 NA NA
Mirae Asset Short Term Bond Fund - Regular - Quarterly Dividend 12.5349 0.7303 0.6888
Mirae Asset Short Term Bond Fund - Regular - Monthly Dividend 10.2837 0.5664 0.5343
Mirae Asset Short Term Bond Fund - Regular - Weekly Dividend 10.3720 0.5167 0.4878
Mirae Asset Short Term Bond Fund - Direct - Growth 14.3666 NA NA
Mirae Asset Short Term Bond Fund - Direct - Quarterly Dividend 13.9613 NIL NIL
Mirae Asset Short Term Bond Fund - Direct - Weekly Dividend 12.1990 NIL NIL
The fund seeks to generate returns through investments in a range of debt and money market instruments of various credit ratings with a view to delivering consistent
returns while maintaining an optimum balance of yield, safety and liquidity.
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The net assets of Mirae Asset Short Term Bond Fund stood at Rs. 4.88 Crores as at March 31, 2015 as against Rs. 15.60 Crores as at March 31, 2014 and out of the total
net assets as on March 31, 2015, 82.70 % of the net assets were invested in money market instruments, 19.07% in CBLO.
The Scheme has flexibility to invest between 20% to 100% of its net asset in Money Market Instruments and debt instruments with residual maturity and repricing tenor
not exceeding 18 months; and upto 80% in Debt Instruments with residual maturity and repricing tenor exceeding 18 months.
(XI) MIRAE ASSET FIXED MATURITY PLAN - SERIES I - 368 Days (MAFMP-I), a close ended Income fund
The performance of Mirae Asset Fixed Maturity Plan - Series I - 368 Days on the date of maturity i.e. February 23, 2015 is as follows:-
Particulars Since inception 1 year 3 years 5 years
Regular Plan – Growth Option 9.44% - - -
Benchmark Index - CRISIL Short Term Bond Fund Index 10.48% - - -
Date of allotment February 21, 2014
Direct Plan – Growth Option 9.85% - - -
Benchmark Index - CRISIL Short Term Bond Fund Index 10.48% - - -
Date of allotment January 01, 2013
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. The returns
shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception.
The Scheme had underperformed its benchmark since inception.
The details of the dividend declared by the fund during the financial year 2014-15 are as follows:
Scheme Description NAV per unit Dividend Per Unit (in Rs.)
February 23, 2015 INDIVIDUAL NON INDIVIDUAL
Mirae Asset Fixed Maturity Plan - Series I - 368 Days 0.7146 0.6627 1.3774
The fund seeks to generate income through investments in Debt and Money Market Instruments maturing on or before the maturity date of the Plan.
The net assets of Mirae Asset Fixed Maturity Plan - Series I - 368 Days stood at Rs. 22.09 Crores as at February 23, 2015 and the total net assets as on the February 20,
2015, 77.39% of the net assets were invested in money market instruments, 22.61% in mutual fund unit.
The Scheme had the flexibility to invest between 70% to 100% of its net asset in Money Market Instruments and upto 30% in debt instruments.
2. FUTURE OUTLOOK:
The Mutual Fund industry has 46 mutual funds and its total AAUM stood at Rs. 1,084,649 crores (as of 31st March, 2015) a growth of 30% from Rs. 834,961 crores as
on 31st March 2014. The AUM grew with strong flows witnessed in Income Funds & Equity Funds. Mirae Asset Mutual Fund recorded an impressive growth of 136% in
FY15.
Mirae Asset India has been on the forefront in terms of introducing differentiated products to meet the asset allocation needs of its investors. We hope to build on our
existing product basket and offer more differentiated products in the coming years. We hope to continue to deliver risk adjusted returns to investors and help create long
term wealth.
On the distribution front too, Mirae Asset India has taken steps and has tied-up with some of the best names in the distribution domain. The fund house has ensured a
prudent mix of distribution partners from IFAs (currently around 6,000 IFA distributors empanelled), Banks and National distributors. This has ensured that the distribution
model is de-risked as well as equipped to take advantages of market opportunities. Both the funds Mirae Asset India Opportunities Fund and Mirae Asset Emerging
Bluechip Fund, have achieved important AUM milestones, which will make them qualified to be sold by many leading banks and wealth outfits, which may help in faster
AUM growth in the next financial year. Further, we have launched Mirae Asset Prudence Fund, (an open ended equity oriented asset allocation scheme), with New Fund
Offer (NFO) period as July 8, 2015 to July 22, 2015 and we may try to launch an ELSS fund before year end.
Mirae Asset Mutual Fund is working on the leveraging its global presence to raise funds from foreign investors in Mirae Asset Schemes 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 able to turn challenges into opportunities and in a short period since inception has started making profits.
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.
Our goal in the long term is to become one of major players in the Indian Mutual Fund Industry with a complete product basket across asset classes and deliver risk
adjusted returns to our investors.
INVESTOR SERVICES
The Schemes of Mirae Asset Mutual Fund have delivered reasonable adjusted returns to investors. In our endeavor to strengthen the services for investor services to
provide them quality and timely service, we have redesign the website of Mirae Asset Mutual Fund, to make it more user friendly, ease to navigate and provides huge
knowledge content on markets and financial terms.
We have strengthen our Online services and to make transacting with us a seamless process allowing the investors to transact in our funds through our website in a
seamless manner. We will start a service wherein first time KYC complied Investors will be able to transact in our funds through our website in a seamless manner. To
keep the investor informed of his investments, we regularly send transaction updates to investors through email/mobile (based on the details filled at the time of account
opening). We have a dedicated customer service team, Toll Free number and email id for servicing all investor queries at the earliest. Further, there have been initiatives
to inform all Investors and Distributors about the latest regulatory changes that have happened in the industry.
In our endeavor to educate our investors regularly we have set up Mirae Asset Knowledge Academy. The sole purpose is to increase investor education and knowledge
levels. We are arranging Investor Awareness Programs through our partners in all our cities or presence, to increase knowledge levels of investors. We have released
investor booklets, contribute articles in financial websites and national publications to explain financial terms in a simple languages. We share newsletters and mailers to
our investors on key financial terms, every week.
3. BRIEF BACKGROUND OF THE TRUST, SPONSORS, TRUSTEE AND ASSET MANAGEMENT COMPANY:
i. Sponsors:
Mirae Asset Mutual Fund is sponsored by Mirae Asset Global Investments Co. Limited, a company incorporated in South Korea. 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.
Mirae Asset introduced the concept of mutual funds to Korea. It is the largest asset manager in Korea and is the pioneer of Systematic Investment Plan (known as Regular
Savings Plan) in Korea and over the years has emerged as the undisputed leader in Korea.
Korea’s largest equity fund manager, Mirae Asset, is now a leading investor in Asian equities, with offices in Hong Kong, Singapore, Vietnam and rapidly expanding to other
parts of the globe including the Europe and America. With its strong foundation in Asia and presence in major financial markets in this region, Mirae Asset has established
a leadership position in the Asia Pacific region.
The Sponsor has entrusted a sum of Rs. 1,00,000/- to the Trustee as the initial contribution towards the corpus of the Mutual Fund.
The Sponsor holds 100% of the paid up equity capital of the AMC.
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ii. Mirae Asset Mutual Fund (MAMF):
Mirae Asset Mutual Fund (MAMF) was set up as a Trust by the Sponsor, Mirae Asset Global Investments Company Limited (MAGIC) on 11th October,
2007 with Mirae Asset Trustee Company Private Limited (the Trustee) as a Trustee in accordance with the provisions of the Indian Trust Act, 1882
(2 of 1882) and is duly registered under the Indian Registration Act, 1908. The Trustee has entered into an Investment Management Agreement dated October 11, 2007
with Mirae Asset Global Investments (India) Private Limited (the AMC) to function as the Investment Manager for all the Schemes of MAMF. MAMF was registered with
SEBI on 30th November, 2007 vide Registration No. MF/055/07/03.
iii. Mirae Asset Trustee Company Private Limited:
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 through its Board of Directors shall discharge its obligations as trustee of Mirae Asset Mutual Fund as provided in the Regulations and the Trust Deed. The Trustees
shall ensure that the transactions entered into by the AMC are in accordance with the SEBI Regulations and will also review the activities carried on by the AMC.
Mirae Asset Trustee Company Private Limited is registered under the Companies Act, 1956 and was incorporated on April 23, 2007. The Sponsors have executed a Trust
Deed on October 11, 2007 appointing Mirae Asset Trustee Company Private Limited as Trustee of Mirae Asset Mutual Fund. The Trustee seeks to ensure that MAMF and
the Schemes floated thereunder are managed by the Mirae Asset Global Investments (India) Private Limited 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, there has been no change in the equity shareholding pattern of Mirae Asset Trustee Company Private Limited.
The shareholding pattern of the Mirae Asset Trustee Company Private Limited: as on 31st March ,2015 is as follows:
Sr. Shareholder’s Name Paid-up capital in Number of shares % of
No. Rs. (Equity Shares of (Equity Shares of Rs.10/- Shareholding
Rs.10/- each) each)
1 Mirae Asset Global Investments Co. Ltd. (MAGI), Korea. (Sponsor) 99980 9998 99.98
2 Mr. Jisang Yoo (Nominee shareholder of MAGI) 10 1 0.01
3 Mr. Mi Seob Kim 10 1 0.01
TOTAL 100,000 10,000 100.00
&- less than 0.00%
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. As required by the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996, the Board of Trustee should comprise of two-thirds of the Directors who are not associated in any manner with the Sponsors of Mirae
Mutual Fund. However, incase of Mirae Asset Mutual Fund, all the Trustee Directors are Independent.
iv. 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 - 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. The AMC also provide non-binding Advisory services to group companies operating offshore
funds domiciled in Korea and Hongkong.
The AMC has entered into an agreement with Mirae Asset Global Investments (Hongkong) Ltd. for seeking advice on the international portion of all the schemes of the
mutual fund.
Share Capital:
During the year under review, there has been no change in the equity shareholding pattern of Mirae Asset Global Investments (India) Private Limited. The shareholding
pattern of the Mirae Asset Global Investments (India) Private Limited:
Sr. Shareholder’s Name Paid-up capital in Number of shares % of
No. Rs. (Equity Shares of (Equity Shares of Shareholding
Rs.10/- each) Rs.10/- each)
1 Mirae Asset Global Investments Co.Ltd. (MAGI), Korea. (Sponsor) 2,031,885,390 203,188,539 100.00
2 Mr. Jisang Yoo (Nominee shareholder of MAGI) 10 1 0.00&
TOTAL 2,031,885,400 203,188,540 100.00
& less than 0.00%
Change in Composition of Board Members:
During the year under review, there was 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.
4. INVESTMENT OBJECTIVE OF THE SCHEMES:
i 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.
ii 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.
iii 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.
iv 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.
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v 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.
vi Mirae Asset Cash Management Fund:
The investment objective of the scheme is to generate consistent returns with a high level of liquidity in a judicious portfolio mix comprising of money market and debt
instruments. The Scheme does not guarantee any returns.
vii 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.
viii 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.
xi Mirae Asset Fixed Maturity Plan - Series – I – 368 Days:
The investment objective of the Plan under the Scheme is to generate income through investments in Debt and Money Market Instruments maturing on or before the
maturity date of the respective Plan.
5. 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.
6. UNCLAIMED REDEMPTIONS & DIVIDENDS:
Summary of No. of Investors & Corresponding amount as at March 31, 2015:
Name of the Scheme Unclaimed Redemptions Unclaimed Dividends
Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors
Mirae Asset India Opportunities Fund 803,616.92 18 1,143,979.32 416
Mirae Asset Global Commodity Stocks Fund 153,648.06 5 0 0
Mirae Asset Emerging Bluechip Fund 61,259.39 2 102,944.94 11
Mirae Asset India-China Consumption Fund 0 0 0 0
Mirae Asset China Advantage Fund 13670 1 0 0
Mirae Asset Ultra Short Term Bond Fund 124.54 1 0 0
Mirae Asset Short Term Bond Fund 0 0 0 0
Mirae Asset Cash Management Fund 0 0 0 0
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 2014-15 is annexed and forms part of the Trustee Report as Annexure I. In the said
statement, details of complaints on data corrections in Investor details have also been mentioned as per the AMFI Best Practice Circular No. 135/BP/25/11-12 dated
March 07, 2012.
7. ROLE OF MUTUAL FUNDS IN CORPORATE GOVERNANCE OF PUBLIC LISTED COMPANIES:
In terms of the Securities and Exchange Board of India (“SEBI”) circular no. SEBI/ IMD/ CIR No. 18/198647/ 2010 dated March 15, 2010 and clarificatory email received
from SEBI on June 23, 2011, the MAMF has framed a general voting policy and procedures for exercising the voting rights in respect of shares held by its Schemes (“Voting
Policy”). The Board of Directors of Mirae Asset Trustee Company Private Limited has adopted the Voting Policy and the same is annexed as Annexure II.
Further, in terms of the above-mentioned circular, the details of actual exercise of proxy votes in the AGMs/ EGMs/Postal Ballot of the investee companies (based on
equity holdings as on the record date across all Schemes of the Fund) for the financial year 2014-15 and the auditor’s certification on the voting report is annexed as
Annexure III. The Voting Policy and disclosure of proxy votes are also displayed on the website of the Fund viz. www.miraeassetmf.co.in
8. MARKET OVERVIEW:
Global Markets
Global and domestic markets had dramatic sessions in the month of June on the backdrop of Greek debt crisis. Financial headlines were dominated by the unfolding of
Greek debt crisis as the deadlock between Greece and its creditors kept financial markets guessing. However, talks did not yield anything positive and Greece missed its
30 June repayment deadline to the International Monetary Fund.
Global financial markets went into a tizzy towards the end of the month as the Greek Prime Minister, decided to go for a referendum before accepting conditions proposed
by creditors for unlocking the bailout fund. Though there was volatility in the global financial markets due to the Greek issue, Indian markets remained fairly resilient during
this period.
Meanwhile, the US Federal Reserve’s decision to wait for some more time before increasing interest rates also helped financial markets across the world. However, the
Chinese market, which has more than doubled in the past one year, has corrected over 20% from its highs. So far, market movements in China have not affected other
markets, but the continued decline can result in volatility in the region.
Global Indices Value MTD YTD
DJIA 17,619.5 -2.3% -1.2%
FTSE 6,521.0 -6.2% -0.4%
Sensex 27,780.8 -0.2% 1.0%
Nikkei 20,235.7 -1.6% 16.2%
Shanghai 4,277.2 -11.4% 27.7%
KOSPI 2,074.2 -1.3% 7.7%
Hang Seng 26,250.0 -4.9% 10.0%
Bovespa 53,080.9 0.1% 9.4%
Source: Bloomberg, 30th June, 2015
Indian Equity Markets
Indian markets faced volatile sessions throughout the month. Benchmark equity indices fell after the monetary policy review. Even though the Reserve Bank of India (RBI)
reduced the repo rate by 25 basis points (bps), the tone of the policy did not go down well with the market. The central bank revised its inflation forecast upwards and said
that it has front-loaded rate cuts. Stocks recovered some ground in the middle of the month as better-than-expected rainfall raised hopes. A normal monsoon will help
boost output and keep inflation in check, which in turn can open up possibilities of rate cuts in the future.
7
The benchmark indices ended at the similar levels slightly on the negative side, as they were at the start of the month, making the month’s session a flat one. On the
Sectorial side Metals and Bankex were the worst performers whereas, Health care and Consumer durables turned out to be the best performers.
Indian Indices Value MTD YTD
BSE 200 3,499.5 -0.8% 1.9%
BSE Mid - Cap 10,680.0 -0.3% 5.1%
BSE Small - Cap 11,075.4 -1.8% -1.6%
CNX Mid - Cap 13,009.7 -1.3% 3.1%
S&P BSE Metal 9,335.3 -3.9% -14.1%
S&P BSE FMCG 7,789.1 -1.8% 1.3%
S&P BSE Auto 18,712.2 -1.6% 0.0%
S&P BSE BANKEX 20,982.2 -1.9% -2.3%
S&P BSE Health Care 16,564.3 0.8% 12.9%
S&P BSE Consumer Durables 10,745.6 0.9% 10.8%
Source: Bloomberg, 30th June, 2015
Outlook
With the recent market correction and S&P Sensex trading close to 27,500 levels, valuations are quite reasonable. With transformation in macros driven by stable
government, and low commodity prices, India is a multi-year theme and we believe investors should take a long term view while investing in equities.
m India’s market cap / GDP is close to 80%. During the peak of 2008, it was over 100%
m Based on cyclical low past earnings and expectation of high growth, markets are reasonable at ~19x trailing PE and 15.5 times forward earnings.
m Domestic flows in equities (in addition to FII flows) will provide support to the markets
Indian Debt Markets:
RBI reduced policy repo rate by 25 bps to 7.25% on June 02 2015. Consequently, the reverse repo rate stands at 6.25% and the Marginal Standing Facility (MSF) rate at
8.25%. The market has reacted negatively to 25 bps Repo rate cut by RBI on 2nd June 2015. RBI has cut the rates by 75 bps from December 2014, yields on 2024 GOI
is now at pre rate cut levels again in reaction to RBI policy. The yield on the government securities rose as the market became uncertain about the timing of further cuts,
uncertainties about the Grexit and reduced possibilities of rate cuts in India.
The current economic environment is positive rather than negative for bonds with inflation down, government finances stable and RBI is accommodative rather than tight
in its policy stance. Global factors like rise in global bond yields are increasing risk aversion and could have played a part in bond market fear. However with CAD low at
1.3% of GDP and forex reserves at all-time highs of over USD 350 billion, threat to the INR is low and that should ease the fear in the mind of the bond market.
Fixed Income - Rates Value as on 30/06/15 Value as on 28/05/15
Call Money 7.20 7.10
CBLO 7.20 7.63
3 month CD 7.82 7.96
3 month CP 8.15 8.23
1 year CD 8.10 8.25
1 year CP 8.61 8.74
G-Sec (10 yrs) 7.86 7.64
Source: Bloomberg, 30th June, 2015
9. LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SPONSORS:
The main responsibility of the Trustee is to safeguard the interest of the Unitholders and inter-alia ensure that Mirae Asset Global Investments (India) Private Limited (the
AMC) functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the
Trust Deed and the Statement of Additional Information, Scheme Information Document/Offer Document of the respective Schemes. From the information provided to the
Trustee and the reviews the Trustee has undertaken, the Trustee believes the AMC has operated in the interests of the Unitholders.
The Sponsors are not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution of Rs.1 lakh made by them
towards setting up of Mirae Asset Mutual Fund.
10. 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.
11. ACKNOWLEDGEMENT:
The Trustees thanks SEBI, AMFI, the investors, Investors Service Centers, distributors, key partners, service providers, Mirae Asset Global Investments (India) Private
Limited and its employees for their commitment and looks forward to their continued support.
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.
The Balance Sheet as at 31st March, 2015 and the Revenue Account for the year ended 31st March, 2015 for the various schemes are annexed to this Report.
For Mirae Asset Trustee Company Private Limited
Sd/- Sd/-
V. B. Haribhakti S. T. Gerela
Chairman Director
Place : Mumbai
Date : July 22, 2015
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