MACAF Simplified - 040909 - Final

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


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


Monthly new loans in valueGrowth Rate % YoY

7

Investment & Consumption on Rise


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)


Non-State Investment rose 35% YoY in May 09

8

Source: CLSA, July, 2009


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


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.


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


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


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


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


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


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


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


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)


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


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


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


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


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


34

Mirae AssetEmerging Markets Expert

35

Mirae Asset’s Investments in China Markets


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


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


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)


Independence Fund

Discovery Fund

Best Asset Management Company

(2003)

By Mae-il Business Newspaper

By Korea Economic Business


By Mae-il Business Newspaper & Korea Economic

Business

Best Fund of Korea

By Korea Economic Business Newspaper & Korea

Fund Research


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


By Mae-il Newspaper

Best Global Marketing Award

By Seoul Economic Business

Asset Management-Gold Prize

By Mae-il Newspaper

Best Fund-China Solomon


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


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.

.

Documents

MACAF Simplified - 040909 - Final