macaf simplified - 040909 - final
TRANSCRIPT
0
A Rising Nation : An Investment
Opportunity
Presenting
Mirae Asset China Advantage Fund(An open ended Fund of Funds scheme)
NFO Period : 14th Sept 2009 to 9th Oct 2009.
Scheme re-opens for sale and repurchase on or before 6th November, 2009.
1
Contents
China Economic Growth Potential
China Equity Markets
Presenting Mirae Asset China Advantage Fund
Why Mirae Asset ?
2
China Economic Growth Potential
Macroeconomic Overview
Can it sustain its Economic Growth?
Long term Investment Opportunities
3
Source : McKinsey Global Institute, July 2009
350 million will be added to China’s urban population by 2025
– Higher than the current population of USA
1 billionpeople who will live in China’s cities by 2030
221 chinese cities will have one million + people
Europe has 35 such cities today
5 Billionsquare meters of road to
be constructed
170 Mass
Transit System to be built
490 million JobsMigrants will account for 66 percent of
the labor force.
50,000of these buildings would be
skyscrapers
5 times - the number by which
the GDP will grow by
2025
40 billionSquare meters of floor space will be
built – in five million buildings
China : A Giant within
4
Fastest Growing Economies in the World
One of the Fastest Growing Economies In the World
Poised to be 2nd largest economy in the world by 2010 Source: IMF World Economic Outlook
Share of China’s GDP as a percentage of the world has risen at the expense of
Developed Economies.
Overview of the World Economic Outlook Projections
Year over Year(Percent Change) July 2009 Projections
2007 2008 2009 2010
World output1 5.1 3.1 -1.4 2.5
United States 2 1.1 -2.6 0.8
Germany 2.5 1.3 -6.2 -0.6
France 2.3 0.3 -3 0.4
Italy 1.6 -1 -5.1 -0.1
Spain 3.7 1.2 -4 -0.8
Japan 2.3 -0.7 -6 1.7
United Kingdom 2.6 0.7 -4.2 0.2
Canada 2.5 0.4 -2.3 1.6
Russia 8.1 5.6 -6.5 1.5
China 13 9 7.5 8.5
India 9.4 7.3 5.4 6.5
ASEAN-53 6.3 4.8 -0.3 3.7
Middle East 6.3 5.2 2 3.7
Brazil 5.7 5.1 -1.3 2.5
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
60%
62%
64%
66%
68%
70%
72%
74%
76%
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008E
2009F
2010F
Share of GDP (US, EU and Japan combined) (LHS)
Share of China's GDP (RHS)
Share of GDP as percentage of the world
Source: IMF World Economic Outlook, July 2009
Source: UBS, May 2009
5
Despite Global Recession,
growing at a reasonable pace Despite global slowdown, China grew at 7.9% in the 2Q 2009
Over 50% of Chinese GDP growth this year due to Investment and the balance from
Consumption
Zero contribution from Net exports.
Economic growth no longer reliant on exports with Investment and Consumption being growth
drivers
For Professional Investors Only. Not for Distribution to the Public.
Source: CEIC, CLSA Asia Pacific Markets, July 2009
Growth Drivers: Investment and Consumption
GDP Growth Rate by expenditure approach
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jan
-03
Jun
-03
Nov-0
3
Apr-
04
Sep-0
4
Feb-0
5
Jul-05
Dec-0
5
May-0
6
Oct-
06
Mar-
07
Aug-0
7
Jan
-08
Jun
-08
Nov-0
8
Apr-
09
China Export Growth
3mma yoy%
Chinese Exports Bottoming Out
Source: State Statistical Bureau, May 09
Ample Liquidity to Aid Recovery
6
Source: CEIC & UBS, July 2009
For Professional Investors Only. Not for Distribution to the Public.
Money & Credit Growth Has Surged
The growth of outstanding bank lending accelerated to 34.4% year on year in June 09.
The increasing bank lending is an important factor in sustaining domestic demand
Total new loans expected to be RMB 8-9 trillion, more than enough to support economic
recovery.New Bank Lending Remains High
Source: CEIC, CLSA Asia Pacific Markets, July 2009
Monthly new loans in valueGrowth Rate % YoY
7
Investment & Consumption on Rise
For Professional Investors Only. Not for Distribution to the Public.
Source: CEIC & UBS, July 2009
Urban Fixed asset investment rose by 35% year on year in Jun 09, up from 34% in April 09
and 30% in March 09.
Chinese state owned enterprises investing heavily in infra projects has led to this growth.
Retail Sales are growing at a reasonable pace due to both Urban and Rural Real disposable
Incomes are growing
Mellowing inflation has lead to disposable income growth, CPI Inflation (-1.4% yoy in May 09),
PPI Inflation (-7.2% yoy in May 09)
Source: CEIC, CLSA Asia Pacific Markets, July 2009
Non-State Investment rose 35% YoY in May 09
8
Source: CLSA, July, 2009
For Professional Investors Only. Not for Distribution to the Public.
Shift towards domestic demand as a driver of future economic growth provides the need
for long-term infrastructure development in China
We expect massive development of roads, rail, domestic ports/airports, with China
dominating infrastructure spending in the Asian region
Infrastructure Investment by Asian Markets
(2009-10)
Infrastructure spending as a proportion of GDP
Investment & Consumption on rise China’s Infrastructure Spending
China, 75%
Hong Kong, 1%
India, 10%
Korea, 4%
Taiwan, 3%Thailand, 3%Others, 4%
China
Hong Kong
India
Korea
Taiwan
Thailand
Others
Others Include Indonesia, Malaysia, Philippines & Singapore
0% 1% 2% 3% 4% 5% 6% 7% 8%
China
Thailand
Taiwan
India
Phillipines
Malaysia
hong …
Singapore
Korea
Indonesia
%
9
China Economic Growth PotentialCan it sustain its Economic Growth?
10
Fiscal Position : Balanced Fiscal Position – China’s fiscal deficit was just 0.4% of GDP last year
This places China in a strong position to give further impetus to economic growth through
stimulus packages if required
With economic recovery, Government revenues expected to pick up
National Revenues already up by 4.8% (YOY) in May 09
For Professional Investors Only. Not for Distribution to the Public.
Source: NBS, CEIC, CLSA Asia Pacific Markets, July 2009
Begin with a Strong Fiscal Position Government Revenue Recovering
Fiscal Deficit as a % of GDPUp 5% YoY in May 09
11
Room for Further Monetary Stimulus
Interest rates in China is currently
at a high level, leaving central
banks big room for monetary
stimulus.
Falling oil and commodity prices
trim fear of inflation and offer
comfort for monetary easing policy.
For Professional Investors Only. Not for Distribution to the Public.
Countries RatesCountry policy
rates
United States Fed Funds Target rate 0.25%
Japan Over-night rate 0.10%
China1 year lending rate 5.31%
Required reserve rate 15.5%
IndiaReverse Repurchase rate 3.25%
Cash reserve ratio 5.00%
South Korea Target official bank rate 2.00%
Australia RBA Cash Targeted rate 3.00%
Singapore Overnight rate 0.16%
New Zealand Reserve Bank of NZ Official
Cash rate
2.50%
Indonesia Bank Indonesia Reference rate 7.25%
Taiwan Re-discount rate 1.25%
Malaysia Over-night policy rate 2.00%
Thailand BOT One day Repo market rate
1 day
1.25%
Source: Bloomberg, May.2009
12
Huge Forex Reserves
With a huge trade surplus and FDI
inflows, China has seen its forex
reserves ballooning.
High Forex Reserves provides China
leeway to continue with its large-scale
fiscal stimulus package to compensate
for any fall in exports
For Professional Investors Only. Not for Distribution to the Public.Source: Bloomberg, May.2009
Amount (USD billion) As % of the World
China 1,954 29%
Japan 983 15%
India 241 4%
South Korea 212 3%
Taiwan 305 5%
Hong Kong 193 3%
Singapore 170 3%
Malaysia 87 1%
Indonesia 55 1%
Thailand 113 2%
Philippines 39 1%
Australia 28 0%
Brazil 203 3%
Russia 385 6%
Euro zone 189 3%
United States 40 1%
World Total 6,699 100%
Foreign Exchange Reserves of major economies
13
Comfortable external debt position
Strong External Debt position - Today, history is unlikely to repeat itself due to substantial
improvement in the external debt position and sizeable foreign exchange reserves. This
should not lead to Asian Currency Crisis similar to in 1998.
External debt and FX reserve position of Asia countries
For Professional Investors Only. Not for Distribution to the Public.
Source: Merrill Lynch, The Asian Macro Navigator , October 2008
14
China Economic Growth PotentialLong term Investment Opportunities
15
Inland urbanization
Between now and 2020, the equivalent of US population to urbanize in China
Long term resource mobilization and urban redevelopment is therefore waiting to
unfold in China
July , 2006
Chinese 2020 Infrastructure Landscape
16
A = Grade A
Source: Government statistics and REIS
For Professional Investors Only. Not for Distribution to the Public.
China 2020: Infrastructure Landscape Expected
Particulars 1998 2008 2011 2020
17
Motor vehicles per 1000 people
0
200
400
600
800
1,000
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
US
Japan
Korea
Brazil
China
Real per capita PPP GDP (US$)
(Motor vehicles per 1,000 people)
India
Source : UNDP, CLSA, July 09
Consumption driven Growth
Steady rise in per capita incomes would mean more number of motor vehicles on
Chinese roads in years to come.
Projected Car-Sales Growth : (2008 -18)
Source: CLSA, July, 09
18
Government Healthcare Expenditure to GDP
Sources: WHO; BNP Paribas, July 09
Government Education Expenditure to GDP
Sources: NBS; China Science and Technology Statistics; BNP
Paribas; July 09
Long term investment Opportunities in ChinaOpportunities in Paradigm Transition Consumption/Service driven Growth
Government’s expenditure on soft infrastructure like Education and Health Care
has huge potential to grow
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
US
A
Sw
itzerlan
d
Japan
Germ
any
Canada
Austr
alia
Fra
nce
UK
Italy
Kore
a
Russia
Bra
zil
Sin
gapore
India
Chin
a
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
US
(2004)
Kore
a (
2004)
Germ
any (
2004)
India
(2004)
Chin
a (
2006)
19
China Equity Markets–Is there a Room for further upside?
20
Chinese Equity Markets- A Snapshot
For Professional Investors Only. Not for Distribution to the Public.
Categories Description Investors Exchange Listed on Represented Index
Pure China Equity
A-Shares
Shares of Chinese companies listed
on Shanghai/Shenzhen stock exch
anges quoted in Renminbi/ Yuan
Domestic
Foreign investors
holding QFII license
Shanghai
Shenzen
CSI300
CSI100
SHCOMP
B Shares Shares of Chinese companies listed
in Foreign CurrenciesForeign investors
Shanghai
Shenzen SHCOMP
H-SharesShares of companies incorporated i
n Mainland China Foreign investors
Hong Kong Stock Exchang
e HSCEI
Red Chips Shares of mainland Chinese compa
nies incorporated outside China Foreign investors
Hong Kong Stock Exchang
e
No representative i
ndex available
Greater China Equity
•China
•Hong Kong
•Singapore
•Taiwan
Shares of companies from 4 mentio
ned countries
Domestic
Foreign Investors
Shanghai
Hong Kong
Singapore
Taiwan
MSCI Golden Drag
on Index
CSI100 & CSI 300-The CSI 100 is a capitalization-weighted stock market index designed to replica the performance of 100 stocks traded in the
Shanghai and Shenzhen stock exchanges. Similarly CSI 300 constitutes of 300 A shares
SHCOMP –The Shanghai Stock Exchange Composite Index is a capitalization-weighted index. The Index tracks the daily price performance of
all A-shares and B-shares listed on the Shanghai Stock Exchange.
HSCEI – HangSeng Enterprises Index covers all H-shares in the HangSeng Mainland Composite Index. Compromises of H-Shares listed on the
Hong Kong Stock Exchange and included in the HangSeng Mainland Composite Index
MSCI Golden Dragon Index: Aggregate of the MSCI Hong Kong, the MSCI China Free Index and MSCI Taiwan Indices
21
Performance of China Equity Markets
China equities - Ranked No 2 in terms of risk adjusted return in the past 5 years
among major global equity markets
Source: Lipper Hindsight, May 15 2009. Risk/return figures are calculated based on the USD capital return performance of MSCI indexes. Past
performance figures are not indicative of future performance.
Returns and volatility are calculated based on the period form Apr, 30, 2004 to Apr 30, 2009
-5
0
5
10
15
20
25
30
35
15 20 25 30 35 40
Annualized Annual return (%)
Annualized Annual Volatility (%)
China
Brazil
Mexico
AverageKorea
HK
MSCI Asia
Pacific ex
Japan
India
RussiaSG
Taiwan
Malaysia
EuropeMSCI World
Japan
For Professional Investors Only. Not for Distribution to the Public.
22
Performance of China Equity Markets
China Equity Markets have outperformed the other emerging markets over medium to
long term
Source: Bloomberg, Past Performance may or may not be sustained in the future
For Professional Investors Only. Not for Distribution to the Public.
Indices performance in INR as on 31st August, 2009 (Absolute Return %)
Indices 3 month 6 month YTD 1 year 3 year
CHINA MARKET INDICES
CSI 300 Index* 5.01% 26.48% 56.16% 31.69% 158.42%
MSCI Golden Dragon Index
(Greater China Index)* 7.15% 46.43% 41.13% 4.14% 19.37%
MSCI China Index 10.66% 49.80% 39.68% 8.95% 59.86%
MSCI INDIA INDEX 8.49% 83.08% 68.56% 6.61% 32.03%
MSCI BRAZIL INDEX 9.53% 61.39% 72.00% -9.54% 61.33%
MSCI RUSSIA INDEX -2.34% 71.98% 58.29% -34.94% -42.55%
23
Mainland Chinese Markets: An Untapped Opportunity in Indian Context
Foreign investors can invest in A-shares (local company stocks) through the
scheme of Qualified Foreign Institutional Investors only (QFII).
Currently only around 60 QFIIs are allowed to invest in the A-share market
with Mirae Asset Global Investments, Korea being one of them.
A-Share market has strong track record over medium to long term as seen
in the performance of these indices
For Professional Investors Only. Not for Distribution to the Public.
Various China Market Indices performance in INR as on 31st August , 2009 (Absolute Return %)
Indices 3 month 6 month YTD 1 year 3 year
Mainland China Market Indices
CSI 300 Index 5.01% 26.48% 56.16% 31.69% 158.42%
CSI 100 Index 5.35% 24.52% 50.06% 22.07% 152.53%
Greater China Market Index
MSCI Golden Dragon Index 7.15% 46.43% 41.13% 4.14% 19.37%
Other China Market Indices
HSCEI Index 12.16% 56.18% 43.42% 8.23% 72.61%
MSCI China Index 10.66% 49.80% 39.68% 8.95% 59.86%
MSCI India Index 8.49% 83.08% 68.56% 6.61% 32.03%
Source: Bloomberg, Past performance may or may not be sustained in the future
24
Attractiveness of Mainland Chinese
Markets
Source : Bloomberg, July 2009
For Professional Investors Only. Not for Distribution to the Public.
The correlation of A – share market with respect to global markets is low. Hence, exposure to
Mainland Chinese stocks can help investors in terms of portfolio diversification.
It provides niche exposure which is not available via H-share, red chips or N-shares. E.g.
Chinese Wine, Traditional Chinese Medicine, Securities, Agriculture, Hydro Power, Animal
Vaccine, Machinery Parts, etc
Correlation: 2005 - 09
Index Brazil Russia India Hong Kong USA UK
CSI300 0.12 0.12 0.16 0.35 0.01 0.05
SHCOMP 0.12 0.13 0.16 0.35 0.00 0.06
HSCEI 0.39 0.44 0.52 0.85 0.15 0.34
25
Why to invest in China ?
Portfolio Diversification –
Optimal Portfolio (70% India & 30% China)
For Professional Investors Only. Not for Distribution to the Public.
Index Weighting Portfolio characteristics
MSCI
China Index BSE Sensex
Annualized
volatility
Annualized
return
Risk adjusted
return
0% 100% 27.20% 12.46% 0.46
10% 90% 26.02% 12.47% 0.48
20% 80% 25.17% 12.37% 0.49
30% 70% 24.68% 12.15% 0.49
40% 60% 24.59% 11.83% 0.48
50% 50% 24.90% 11.39% 0.46
60% 40% 25.58% 10.85% 0.42
70% 30% 26.62% 10.21% 0.38
80% 20% 27.97% 9.46% 0.34
90% 10% 29.58% 8.60% 0.29
100% 0% 31.43% 7.65% 0.24
7.00%
7.70%
8.40%
9.10%
9.80%
10.50%
11.20%
11.90%
12.60%
22.00% 24.00% 26.00% 28.00% 30.00% 32.00% 34.00%
An
nu
alised
Retu
rn (
%)
Annualised Volatility (%)
Risk - Return Frontier
Annualized Risk Adjusted Return
Source : Bloomberg, The calculations are determined based on weekly returns data from 01/01/2000 to 14/08/2009, Past Performance may or may not be sustained in the future
26
Valuations Still Attractive
Mainland Chinese equities still trading at much below peak valuation levels
Source : Goldman Sachs Jul 2009
For Professional Investors Only. Not for Distribution to the Public.
Source : Deutsche Bank Aug 2009
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
01-D
ec-9
8
01-N
ov-9
9
01-O
ct-
00
01-S
ep-0
1
01-A
ug-0
2
01-J
ul-03
01
-Jun-0
4
01-M
ay-0
5
01-A
pr-
06
01
-Mar-
07
01-F
eb
-08
01
-Jan-0
9
MSCI China Forward PE from 1998
Mean 13.3
+1 std 17.9
-1 std 8.6
27
The situation today is different from the sell off in Oct 07.
Parameters Today October 07
Economic Growth A Strong Uptrend:
Real GDP grew 7.9% yoy in 2Q09
but on a strong recovery track
Beginning of a decline:
12% yoy growth in 4Q07 but in a shar
p declining trend
CPI Inflation Under Control:
Falling 1.8% yoy in Jul 09
Highest in a decade & rising:
Rose 6.9% yoy in Nov 07
Domestic Liquidity Loosest on Record:
Excess Liquidity Index expected to
rise to 20% in 2009
Tightest on record:
Excess Liquidity Index was -4.7% in
2007
Policy Environment Benign:
Central bank reiterates current poli
cy stance – “an expansive fiscal poli
cy and moderately loose monetary p
olicy”
Very Aggressive Tightening:
Central bank reintroduced lending qu
otas
Valuation Below historical Average:
P/E Ratio of A-Share stocks listed
on Shanghai exchange was dropped
to 24x, after last week’s sell off
Richest in history:
P/E Ratio of A-Share stocks listed on
Shanghai exchange was close to 70x, t
he highest in history
Source: Nomura Global Economics, Aug, 2009
Note: Excess Liquidity index measures the difference between M2 money supply growth and nominal GDP growth
Why to invest in China ?
28
Presenting
Mirae Asset China Advantage Fund (An Open Ended Fund of Funds scheme)
Mirae Asset China
Advantage Fund
29
Chinese Markets include companies listed on
mainland stock exchanges (A-Shares & B-Shares)
and Hong Kong Stock Exchange (H-Shares & Red
Chips).
Does not invest in Taiwan & Singapore that form a
part of Greater China region)
First India domiciled fund of fund that also seeks
to take exposure to A-Shares through various
avenues like ETF units/Overseas Mutual Funds.
This enables the fund to take exposure to Chinese
companies with high investment potential not
listed on Hong Kong Stock Exchange
Mirae Asset China Advantage FundIndia’s 1st Pure China Fund
30
Product Features
Mirae Asset China
Advantage Fund
Invest in H Shares, Red
Chips, B-Shares and Hong
Kong stocks,
A large part is invested in
sector leaders and the
balance portion is invested
in future sector leaders
Benchmark – MSCI China
HK listed ETF units,
that track Mainland
China market index)
Overseas Funds that
invest in Mainland
China market
For Professional Investors Only. Not for Distribution to the Public.
Source : Mirae Asset Global Investments( HK) Pvt. Ltd. Past Performance may or may not be sustained in the future and there is no guarantee of future results.
Exposure to Mainland
China Market
Mirae Asset China
Sector Leader Equity
Fund
(Flexibility to invest in
other China Funds)
31
Performance of Fund
For Professional Investors Only. Not for Distribution to the Public.
Fund Performance in INR as on 31st August, 2009 (Absolute Return %)
Fund 1 month 3 month 6 month YTD Inception
Mirae Asset China Sector Leader Equity Fund(SICAV) -5.27% 11.61% 54.41% 46.61% 11.18%
Benchmark
MSCI China -5.51% 10.66% 49.80% 39.68% 13.41%
Note: SICAV Fund Size as on 31st August 2009: US$ 13.24 Million.
Performance of China Sector Leader Equity Fund – SICAV Fund
Source : Bloomberg, Past performance may or may not be in the future.
32
Portfolio DetailsMirae Asset China Sector Leader Equity Fund
For Professional Investors Only. Not for Distribution to the Public.
Source: Mirae Asset Global Investments (HK) Pvt. Ltd, Data as on 31st July, 2009.
MACSLEF Holdings as on 31st July, 2009 % NAV
Industrial & Commercial Bank of China Ltd. 9.56
China Petroleum & Chemical Corp. 8.34
China Life Insurance Co. Ltd. (China) 7.81
China Construction Bank Corp. 7.19
PetroChina Co. Ltd. 6.84
Ping An Insurance (Group) Co. of China Ltd. 5.15
CNOOC Ltd. 4.83
China Merchants Bank Co. Ltd 'H' 4.41
Tencent Holdings Ltd. 4.04
Tingyi (Cayman Islands) Holding Corp. 3.22
China Shenhua Energy Co. Ltd. 3.03
Parkson Retail Group Ltd. 3.00
China Mobile Ltd. 2.71
Anhui Conch Cement Co. Ltd. 2.48
China Overseas Land & Investment Ltd. 2.41
China Resources Power Holdings Co. Ltd. 2.15
Hengan International Group Co. Ltd. 2.01
Bank of China Ltd. 1.85
PICC Property & Casualty Co. Ltd. 1.70
China National Building Material Co. Ltd. 1.32
Other Equity Holdings 12.52
Cash & Others 3.43
Total 100.00
40.26
25.30
5.23
5.16
4.56
3.863.80
3.553.43 2.71
2.15
MACSLEF Sector Holdings as on 31st July, 2009
Financials
Energy
Consumer Staples
Materials
Information Technology
Industrials
Fund
Consumer Discretionary
33
Investment StrategyQuality over Quantity
Emphasize the growth opportunities related to the secular and structural changes
Fundamental, bottom-up stock picking approaches
Focus on companies with the following characteristics
Competitive strategy
Impressive and sustainable long-term business model and strategies
Leading players with growing business that benefit from long term macro trends
Leadership
Reliable management
Capable and accountable management who care for shareholders’ values
Attractive valuation
Atrractive relative valuation with the consideration of liquidity and volatility
For Professional Investors Only. Not for Distribution to the Public.
34
Mirae AssetEmerging Markets Expert
35
Mirae Asset’s Investments in China Markets
For Professional Investors Only. Not for Distribution to the Public.
Source: www.miraeasset.com Data as on July 10 2009.
Assets under Management in China (including China allocations in
Multi Country Funds) - US$ 5.5 billion (as on July 10,2009)
Assets under Management in China dedicated Funds- US$ 3.285 billion
(as on July 10,2009)
Some of large China dedicated Funds (Korea domiciled)
- Mirae Asset China Solomon Fund - US$ 1875mln
- Mirae Asset China Sector Leader Fund - US$ 629mln
- Mirae Asset China Discovery Fund - US$ 429mln
36
One of the world’s largest investors in emerging market equities
We have been recognized as one the leaders in emerging market equities via various publications and surveys. In a
survey conducted by IPE (Investments Pensions Europe) in 2009, Mirae Asset was marked as one of the largest
investor s in emerging market equities with more than Euro 18 .7 billion of AUM. (as of March 2009)
Rank Company
Emerging market
equities AUM
(EUR billion)
Number of emerging
market
professionals
As of
(updated date)
1 Barclays Global Investments 29.1 41 March 2009
2 Mirae Asset Global Investments Group 18.7 89 March 2009
3 State Street GA 18.0 14 March 2009
4 Franklin Templeton Investments 12.4 39 March 2009
5 Morgan Stanley Global Group 11.9 21 March 2009
6 HSBC Global Asset Management 11.7 180 December 2008
7 BNP Paribas IP 9.8 150 March 2009
8 The Vanguard Group 9.6 46 March 2009
9 Acadian AM 9.4 33 April 2009
10 JP Morgan Asset Management 9.2 20 March 2009
• Source: IPE: Investing in Emerging Market Equities Survey, July/August Edition 2009
Emerging Market Experts
37
One of Asia’s largest asset managers
Mirae Asset retains a strong belief in Asia’s growth potential. Based on our Asian research operations spread across
the regions of Hong Kong, Shanghai, Mumbai, Hanoi, and Seoul, we have been able to collect in-depth market
information and carry out timely investment decisions for our clients. The ceaseless efforts toward our clients were
reflected in “Fund Manager Survey by Asia Asset Management” in 2008, where Mirae Asset marked the spot as the
largest retail manager in Asia (ex. Japan and Australia).
Special Focus in the Asia Pacific Region
< Top 10 Retail Manager in Asia (ex. Japan, Australia) > < Top 10 Institutional Managers in Asia (ex. Japan, Australia) >
Rank Company Asset (USD mn)
1 Mirae Asset Global Investments Group 50,596
2 HSBC Global AM (HK) Limited 32,500
3 Franklin Templeton Investments 32,101
4 JF Asset Management 28,669
5 Prudential Asset Management 28,597
6 Blackrock 23,268
7 ING Investment Management 19,319
8 Reliance Capital AM Ltd. 15,527
9 BNP Paribas Investment Partners 14,880
10 Alliance Bernstein LP 12,000
Rank Company Asset (USD mn)
1 State Street Global Advisors Asia Ltd. 48,615
2 HSBC Global AM (HK) Limited 28,300
3 Schroder Investment Management 26,732
4 Blackrock 26,538
5 AXA Investment Managers 24,051
6 Barclays Global Investors 20,468
7 ING Investment Management 17,476
8 Mirae Asset Global Investments Group 15,094
9 PIMCO 14,870
10 Prudential Asset Management 14,413
• Source: Fund Manager Survey “Top 20 Managers in Asia ex Japan and Australia”, Asia Asset Management (September 2008)
China team structure
38 For professional investors only. Not for distribution to the public.
Hong Kong
Kim Byung Ha
Senior Portfolio Manager
Im Sung Ho
Portfolio Manager
David Lai
Portfolio Manager
Lina Yan
Analyst
Stephen Chen
Analyst
Li Cong
Head of China
China Investment Team Dr. Li Cong
Director, Head of China Equity
14 years investment experience, 18 years working experience
Li Cong, Director and Head of China Equity, joined Mirae Asset Global Investments (Hong
Kong) in March 2006 from Hong Kong-based Hamon Investment Group where he was
responsible for stock selection in Greater China. Known as a pioneer of China’s fund
management industry, Li Cong started his investment management career in 1994 at Hua
Yin International Trust & Investment Company covering equities, fixed income and
commodity futures. He subsequently joined Shanghai-based Hua An Fund Management
Company in 1998, where he managed various China funds. Li Cong was named one of
China’s top fund managers by New Fortune Magazine in 2002 for consistent outstanding
performance.
Prior to joining the industry, Li Cong was an international business manager with Tung
Kong Industrial Company. A CPA charterholder, Li Cong holds a PhD in Business
Administration from Shanghai Jiao Tong University (China) and a Masters in Public
Administration from New York’s Columbia University.
Byung-Ha Kim
Associate Director
10 years investment experience, 10 years working experience
Byung-Ha is the Associate Director of Mirae Asset Global Investments (Hong Kong)
responsible for Hong Kong and China equity market coverage.
He has over eight years of experience in capital markets and fund management in Korea,
where he worked as a strategist for Mirae Asset Investments. Before that, he held the
position of analyst and portfolio manager covering Korean stocks.
Byung-Ha graduated with a Bachelor of Business Administration from Seoul National
University.
As of June 2009
Global emerging markets research team
39 For Professional Investors Only. Not for Distribution to the Public.
Marco Giubin
Senior Portfolio Manager, Head of Regional Consumer Sector
13 years investment experience, 13 years working experience
Marco Giubin joined Mirae Asset in May 2006. He is responsible for Mirae Asset’s regional consumer funds and
is the lead manager of the Mirae Asset Asian Consumer Fund and Mirae Asset Japan Consumer Fund.
Prior to Mirae Asset, Marco was an analyst with Fidelity Investments (Hong Kong) where he led the Asian
consumer sector team. He joined Fidelity as an analyst in 1999 and in his time with them, covered numerous
sectors. Before that, Marco was an analyst at UBS where he covered Australian mining companies.
Marco holds a Bachelor of Business from the University of Technology (Australia).
Global Emerging Markets Research Team
Marco Giubin, Team Head
Hong Kong
Jason Oh
Deputy Team Head
Francis Chan*
Senior Analyst
Andy Ng*
Portfolio Manager
2 X TBACynthia Leung*
Analyst
Joo Hee An
Portfolio Manager
Seoul
SK Han
Sr. Analyst
Ji Yoon Shin
Sr. Analyst
Sol Ahn
Analyst
Yuni Choi
Analyst
Neelesh Surana
Senior PM
India
Jeniev Shah
PM/Analyst
United Kingdom
Oliver Leyland
PM/Analyst
Brazil
* Members of the GEM Research Team who have dual responsibilities.
As of June 2009
40
Best Fund (Korea Equity) (2002)
By Joongang Newspaper
Independence Fund
Discovery Fund
Best Fund (Korea Equity) (2003)
By Joongang Newspaper
Independence Fund
Discovery Fund
Best Asset Management Company
(2003)
By Mae-il Business Newspaper
By Korea Economic Business
Best Asset Management Company
By Mae-il Business Newspaper & Korea Economic
Business
Best Fund of Korea
By Korea Economic Business Newspaper & Korea
Fund Research
Best Asset Management Company
By Mae-il Business Newspaper & Korea Economic
Business
Best Fund of Korea
By Korea Economic Business Newspaper & Korea Fund
Research
Best Provider of Portfolio Management: Equities
Best Provider of Private Equity Investment
By Euro Money Poll
Mae-Kyung Grand Prize
Long Term Performance
Best Global Marketing Award
By Seoul Economic Business Newspaper
Korea Fund Grand Prize
By Mae-il Business News paper
Asian Investor 2008 Achievement
Awards
By Korea equities - One-year performance
Best Asset Management Company
By Mae-il Newspaper
Best Global Marketing Award
By Seoul Economic Business
Asset Management-Gold Prize
By Mae-il Newspaper
Best Fund-China Solomon
By Joongang Newspaper
CEO of the Year (H.J. Park)
By Mae-Kyung Economy
Best Asset Manager, Best Fund
By Money Today, Morning Star Fund Grand
Prize
China Solomon, Korea Discovery
Best Asset Management (Equity)
By KRX
Asia Investor 2007 Achievement Awards
By Korea Fund House
~ 2003 2004 2005 2006 2007 2008 2009
Awards & Recognition
Asian Investor Investment Performance
Awards
Emerging Market Equities
Korea On-shore Fund House
41
Mirae Asset(India) Existing Products’
Performance
For Professional Investors Only. Not for Distribution to the Public.
Performance( Annualized) as on
August 31, 2009
1 Year
(CAGR)
Since Inception
(CAGR)
MAIOF 24.60% 12.23%
Benchmark - BSE 200 8.28% 1.19%
Performance (Annualized) as on
August 31,2009
1 year
(CAGR)
Since Inception
(CAGR)
MAGCSF 1.37% 4.26%
Benchmark - MSCI AP ex Japan ex India
Energy & Materials Index(55%)+
MSCI Brazil Energy & Materials Index(10%)
+ MSCI India Energy & Materials Index(35%)
4.10% 6.45%
Performance of Mirae Asset India Opportunities Fund*
Performance of Mirae Asset Global Commodity Stocks Fund*
Source: MFIE, Inception Date April 04, 2008.
Source: MFIE, Inception Date August 20, 2008.
*For Performance reporting, since inception returns calculated on NAV of Rs. 10/-. Inception date (deemed to be the date of
allotment): 20.08.2008. Data based on NAV of Rs. 10.439 (Regular plan – Growth option) as on August 31,2009. **
Compounded Annualized Growth Returns (CAGR). #Past performance may or may not be sustained in future and is no
guarantee of future results.
*For Performance reporting, since inception returns calculated on NAV of Rs. 10/-. Inception date (deemed to be the date of
allotment): 20.08.2008. Data based on NAV of Rs. 11.764 (Regular plan – Growth option) as on August 31,2009. **
Compounded Annualized Growth Returns (CAGR). #Past performance may or may not be sustained in future and is no
guarantee of future results.
42
Disclaimer
Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Global Investments (India) Private Limited (AMC);
Sponsor: Mirae Asset Global Investments Company Limited.
Investment Objective: 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. Load Structure: Entry Load: Nil. In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30,
2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI
registered Distributors based on the investors’ assessment of various factors including the service rendered by the distributor”. Exit Load: i.) Regular Plan: 1.00%, if
redeemed upto 90 days from the date of allotment and 0.50% If redeemed after 90 days but before 180 days from the date of al lotment; For Systematic Investment
Plan/ Systematic Transfer Plan/Systematic Withdrawal Plan: 1% If redeemed upto 365 days from the date of allotment. Investors should also be aware that the
underlying scheme(s) could charge entry load/exit load which may affect the returns to the investors. The load structure of the underlying scheme(s) may change from
time to time. The investor shall bear the scheme recurring expenses in addition to the scheme recurring expenses of underlying scheme.
Asset Allocation: (1) 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*: 80-100% (2) Money market instruments / debt securities
Instruments** and/or units of debt/liquid schemes of domestic Mutual Funds.: 0-20% (*Equity and Equity related instruments include convertible debentures, equity
warrants, convertible preference shares, equity derivatives etc. ** Debt instruments include securitized debt upto 20% of corpus.) Terms of Issue: The units are
available at the face value of Rs.10/- per unit during the New Fund Offer Period. The AMC will calculate and disclose the first NAV not later than 30 days from the
closure of New Fund Offer Period. Subsequently, the NAV will be calculated at the close of every working day and shall be published in two daily newspapers and on
the AMC website. Risk Factors: Mutual fund investments are subject to market risks and there is no assurance or guarantee that the objectives of the scheme will be
achieved. As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Schemes can go up or down depending on the factors and
forces affecting the capital markets. Investments in mutual funds are prone to risks of fluctuation in NAVs, uncertainty of dividend distributions etc. Past performance
of the Sponsor / AMC / Mutual Fund / Trustee does not indicate the future performance of the Schemes of Mirae Asset Mutual Fund. The sponsors are not liable or
responsible for any loss resulting from the operation of the fund beyond the initial contribution made by them of an aggregate amount of Rupees One Lakh towards
setting up of the fund. The Scheme should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such
scheme/plan(s). In case of non-fulfillment with either of the above two conditions in a three months time period or the end of succeeding calendar quarter, whichever
is earlier, from the close of the New Fund Offer (NFO) or on an ongoing basis for each calendar quarter, the schemes /plans shall be wound up by following the
guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV. Mirae Asset China Advantage Fund is only the name of the scheme
and does not in any manner indicate either the quality of the scheme or its future prospects or returns. Investors in the scheme are not being offered any guaranteed /
indicative returns. Please see "Risk Factors", "Scheme Specific Risk Factors and Special Consideration" and "Right to limit redemptions" in the Scheme Information
Document (SID). Please read the Statement of Additional Information (SAI)/ SID carefully before investing. Unit holders in the Scheme are not being offered any
guaranteed/assured returns. A copy of SAI / SID/ Key Information Memorandum cum Application form will be available at AMC offices/AMC web-site
www.miraeassetmf.co.in / Investor Service Centre / Distributors on request.
.