Mirae Asset Global Allocation Fund PPT Apr 2025.pdf
- 1. MIRAE ASSET GLOBAL ALLOCATION FUND “Invest Across Global Market and Themes” A Category III AIF Close-ended Restricted Scheme (Non-Retail) under the IFSCA FM Regulations (Outbound Fund) IFSC, GIFT City
- 3. GIFT International Financial Services Centre (IFSC) Full-fledged financial ecosystem with global connects Special carve outs from domestic laws Principle based Best-in-class regulations (Globally Benchmarked) Unified Regulator (powers of 4 Domestic Fin Sector Regulators- Delegated to IFSCA) Globally Benchmarked Tax Regime Full Convertibility - 15 currencies permitted GIFT IFSC: Unique Features • Gujarat International Finance Tec-City (GIFT City) ‒ India’s only approved IFSC • A free trade zone with various tax incentives enabling flow of finance, financial products and services across borders • Integrating the Indian economy with the global financial system and Onshoring India-centric International financial services currently being carried out in offshore jurisdictions.
- 4. Current Status: Mirae Asset in GIFT City *The Branch of AMC has been Granted certificate of Registration as Fund Management Entity ‒ Retail Name of the FME : Mirae Asset Investment Managers (India) Private Limited (IFSC Branch) Product Concepts Offshore Fund Set Up Set up a Branch Office in GIFT City in 2023* 6 Member Dedicated Team (Fund Management, Dealing, Compliance, Operations) Sub Management of SICAV Fund Since 2023 Mirae Asset India Mid Cap Equity Fund (UCIT - SICAV Fund) AUM of $267 Mn (as on 31.12.2024) Dedicated management, Dealing & Operation Setup in Gift City Inbound Funds: Feeding into Indian Mutual Funds, ETF and bonds Outbound Fund: Investing into global stocks/bonds/Offshore Funds and ETFs Launched First Fund Launched an Inbound Fund, Mirae Asset India Equity Allocation Fund (CAT III AIF) Undertaken First Close on 31st July 2024 Target Investors: NRI (Non Resident Indians) and Foreign Nationals/Corporates Mirae Asset Global Allocation Fund (Close ended CAT III AIF) Launching in April 25 Launching First Outbound Fund
- 5. Why Invest In Global Markets?
- 6. Benefits of Investing in Global Markets Reduced Country Risk By Diversification Access to top global performing markets Benefit from domestic currency depreciation Manage future overseas fund requirements Exposure across latest global themes
- 7. Global Diversification to Reduce Country Risk Domestic Political instability or changes in government policies Domestic Economic downturns, inflation or recessions Opportunity to take exposure in major Stock Markets across the Globe Source: Motilal Oswal, Data as of Dec 24 Global Investing helps investors diversify their wealth and minimise risk of single country exposure Why Manage Country Risk Distribution of Wealth Taiwan 2.0 Saudi 2.2 France Arabia 2.4 USA 50.1 UK 2.5 Canada 2.5 India 4.2 Hong Kong 4.5 Japan 5.2 China 8.1 USA 59.9% China 9.7% Taiwan 2.4% 2.6% France Arabia UK 2.6% 3% Canada 3% India 5% Hong Kong 5.4% Japan 6.2% Market Cap (USD Trillion) Contribution to World Market Cap (%) Saudi
- 8. Better Risk Adjusted Returns Coupled with Currency Depreciation Earn Better Risk Adjusted Returns across performing markets with elevated returns of ~3-4% on account of Currency Depreciation Source: Bloomberg. Data as on 30th Jan 25. Review of markets over 2024, JP Morgan Returns Local USD Local USD Regions U.S. (S&P 500) - 25.0 - 26.3 13.9 1.0 AC World ex-U.S. 13.2 6.1 14.7 16.2 5.2 1.0 EAFE 11.8 4.3 16.8 18.9 5.7 1.0 Europe ex-UK 8.1 1.0 17.3 22.7 6.0 1.1 Emerging markets 13.7 8.1 10.3 10.3 3.4 1.0 Selected Countries Japan 21.2 8.7 29.0 20.8 6.3 0.8 United Kingdom 9.5 7.5 7.7 14.1 4.9 1.0 France 1.8 -4.6 18.1 22.3 5.8 1.2 Canada 23.0 12.7 13.3 16.4 5.9 1.1 Germany 18.4 11.0 19.8 24.0 5.7 1.3 China 19.8 19.7 -10.6 -11.0 2.5 0.9 Taiwan 44.3 35.1 31.1 31.3 12.0 1.0 India 15.7 12.4 22.0 21.3 6.9 0.9 Brazil -11.4 -29.5 22.7 33.4 -2.5 1.3 2024 2023 15-years Ann. Beta 85 80 75 70 65 60 55 90 Jan-24 Jan-23 Jan-22 Jan-21 Jan-20 Jan-19 Jan-18 Jan-17 Jan-16 Jan-15 Jan-25 USD/INR movement over past 10 years Returns Across Geographies
- 9. Comparative Returns Across Geographies Source : Bloomberg, In Local Currency 1 2 3 4 5 6 7 8 9 10 Rank 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 China 11.5% Germany 7.3% Japan 6.4% Euro 4.1% South Korea 2.5% USA -1.8% India -4.2% UK -4.8% Brazil -12.5% Hongkong -7.5% Brazil 36.6% UK 12.8% USA 11.8% Germany 5.7% India 3.2% South Korea 3.1% Japan 2.2% Hongkong -0.9% Euro -1.3% China -12.9% Hongkong 37.3% India 28.8% Brazil 27.8% USA 24.7% South Korea 21.9% Japan 19.0% Germany 13.4% UK 8.0% Euro 7.1% China 6.5% Brazil 15.0% India 3.2% USA -5.6% Japan -12.1% UK -12.5% Hongkong -13.6% Euro -14.3% South Korea -17.3% Germany -18.3% China -24.6% Brazil 31.6% Germany 25.5% Euro 24.8% USA 22.3% China 22.3% Japan 18.2% UK 12.1% Hongkong 9.1% India 12.0% South Korea 7.7% South Korea 30.8% Japan 16.5% China 14.2% India 13.7% USA 6.6% Germany 3.5% Brazil 2.9% Euro -4.5% Hongkong -6.2% UK -13.0% India 23.1% USA 20.0% Euro 20.0% Germany 15.6% UK 13.2% South Korea 7.1% China 5.3% Japan 5.3% Brazil -12.2% Hongkong -15.0% Brazil 5.9% India 5.7% UK 1.5% USA -8.7% Japan -9.4% Euro -10.6% Germany -11.4% Hongkong -14.6% China -15.1% South Korea -23.8% Japan 28.2% Brazil 22.3% Germany 20.3% India 20.0% Euro 19.2% South Korea 18.7% USA 13.7% UK 3.8% China -3.7% Hongkong -13.8% Japan 19.2% Germany 18.8% Hongkong 17.7% USA 12.9% China 12.7% India 9.3% Euro 8.3% UK 5.7% South Korea -9.6% Brazil -10.4%
- 10. Exposure Across Latest Global Themes Artificial Intelligence Blockchain Artificial Intelligence Semiconductor Artificial Intelligence Disruptive Materials Artificial Intelligence Defence Tech Opportunity to participate in cutting edge technology though emerging themes which are not available or at a nascent stage in the domestic market
- 11. Mirae Asset Global Allocation Fund IFSC, Gift City
- 12. Instrument Allocation (% of NAV) Global ETFs and Offshore Funds in various jurisdictions 90% - 100% Short term fixed deposit, liquid ETFs, units of liquid/overnight funds Upto 10% (ten percent) Investment Objective & Asset Allocation Investment Objective Asset Allocation Tenure of the Scheme Base Currency Name of the Fund Target Investors Minimum Subscription NAV USD (United States dollar) The investment objective of the Fund is to provide long-term capital appreciation from a portfolio investing in units of overseas equity ETFs which are based on broad market indices and/or emerging themes. 3 Years from Final Closing, extendable by two (2) years subject to approval of 2/3rd (two-thirds) of the investors Resident Investors, Family Offices, Institutions, NRIs and Foreign National Mirae Asset Global Allocation Fund (Close Ended Fund Category III AIF) Weekly The above asset allocation may not be met at all points of time on account of various reasons viz. global markets, subscriptions / redemptions etc., and shall be rebalanced within reasonable time period as per best judgement of the FME. USD 151,000 for all Investors For Accredited Investors USD 10,000
- 13. Mirae Asset Global Allocation Fund - Fund Structure India/ Offshore Contributions Distributions Trustee/ Settlor FME Contributions Distributions IFSC (GIFT City) Offshore Investee Funds - Global ETFs Upto 50-70% Upto 30-50% Axis Trustee Services Limited (Trustee) Mirae Asset Investment Managers (India) Private Limited (IFSC Branch) Resident Investors/Family Offices/ Institutions/ NRIs/Foreign Nationals and Corporates Core Allocation (Developed Markets) Tactical Allocation (Select Themes and Emerging Markets) Mirae Asset Global Allocation Fund
- 14. Portfolio Allocation Mirae Asset Global Allocation Fund Developed Markets such as US Core Allocation Upto 50-70% Tactical Allocation Upto 30-50% Focus on High Growth Markets Opportunistically explore Emerging Markets and Themes with Selective Exposure The above is an illustrative form of the proposed portfolio and the actual portfolio will depend on the market and investment opportunity. Also the allocation between Core and Tactical may change from time to time without any notice in accordance with the asset allocation as mentioned in the PPM of the Fund. Select Themes Upto 10-15% Select Emerging Markets Upto 20% China Taiwan AI Semiconductors Block chain Any other promising themes Any other promising emerging markets
- 15. Indicative Portfolio ETFs Country Listed Canada Canada US/Europe Canada Allocation Abs Return from Dec ‘18 till Feb’25 50-70% 162.8% Upto 20% 18.0%* Upto 15% 216.8% Upto 10% 352.4% Potential Indexes Global X S&P 500 Index ETF (USD) GlobalX MSCI Emerging Markets Index ETF/China ETFs Global X Artificial Intelligence & Technology ETF Global X Semiconductor Index ETF Money Pooled in the GIFT Fund will be invested in various ETFs across the globe though the GlobalX platform Other Themes which are under Consideration/Watchlist Global X Defense Tech ETF Global X Disruptive Materials ETF Global X Block Chain ETF Please note the above portfolio investments are indicate in nature, the actual portfolio may vary based on market conditions and investment opportunities available at the time of investment. *Returns of Global X MSCI China ETF.
- 16. Back Tested Returns* Allocation Indices Global X S&P 500 Index ETF (USD) 65% Global X Semiconductor Index ETF 10% Global X Artificial Intelligence & Technology ETF 15% Global X MSCI China ETF 10% Allocation Date: Model Returns 31-12-2018 in USD SI 18.2% 5 Year 17.5% 3 Year 13.6% 2 Year 26.2% 1 Year 21.6% 6 Month 10.5% Data as of 28th Feb 25. The above back tested returns are indicative in nature. The future allocation might vary and past performance should not be construed as guaranteed in future. Please reach out to your investment advisor before investing Depreciation in Rupee / INR further enhances the returns over a period of time
- 17. Global X S&P 500 Index ETF Exposure to 80% of US Market Cap S&P500 captures large publicly traded companies across various industries, covering approximately 80% of the available U.S. market capitalisation. Benefit from US Dominance In Global Market US Economy is the World’s largest economy and contributes more than 25% to the Global GDP. It represents 67% in the MSCI all country World Index Superior Returns Historically In the last 15 Years, S&P 500 has given highest annualised return of ~14% across markets 30th November 2010 $4858.19 Million 0.10% (Plus applicable Sales Tax) Inception Date Net Assets Management Fee Fund Psychographics 3 months 6 months YTD 1yr. 3yr. 5yr. 10yr. Since Inception 8.73 13.7 35.0 35.0 13.21 16.4 15.1 16.6 Annualised Performance (in %) 2017 2018 Calendar Year Performance (in %) 2019 2020 2021 2022 2023 2024 13.6 3.4 24.6 15.6 27.4 12.7 23.1 35.0 Source: GlobalX, Review of markets over 2024, JP Morgan. Performance Data as of 31 Dec 2024
- 18. Global X S&P 500 Index ETF (Portfolio Composition) Top Holdings* Apple Inc. NVIDIA Corp. Microsoft Corp. Amazon.com Inc. Alphabet Inc. Cl A Weights 7.6% 6.6% 6.3% 4.1% 4.0% Meta Platforms Cl A 2.6% Tesla Inc. 2.3% Broadcom Inc. 2.2% Berkshire Hathaway Inc. Cl A 1.7% JP Morgan Chase & Co. 1.4% Information Technology Financials Consumer Goods Health Care Communication Services Industrial Services Consumer Service Energy Utilities Real Estate 32.5% 13.6% 11.3% 10.1% 9.4% 8.2% 5.5% 3.2% 2.3% Top Sector Allocations 2.1% Source: GlobalX, Holdings data as of 31st Dec 2024. Allocation Data as of 31st Jan 2025
- 19. Global X Artificial Intelligence Technology Index ETF High Growth Potential Spurred by breakthroughs in generative AI, the global artificial intelligence market size expected to grow to $826.7B by 2030 Rapid Commercialisation AI is enabling innovative applications in diverse sectors, including Agriculture, Health Care, and beyond. Forecasts indicate that over 729M individuals will use AI tools by 2030, up 254M from 2023. Unconstrained Approach AI spans multiple segments, and its most innovative companies include both household names and newcomers from around the world. 5th November 2018 $2,609.76 million 0.68% Inception Date Net Assets Total Expense Ratio FundPsychographics 1 months YTD 1yr. 3yr. 5yr. Since Inception -0.3 24.2 24.2 7.0 17.0 15.8 Annualised Performance (in %) Source: GlobalX, Data as of 31st Dec 2024
- 20. Global X Artificial Intelligence Technology Index ETF (Portfolio Composition) Tesla Inc. Broadcom Inc. Netflix Inc. Servicenow Inc. Salesforce Inc. Cisco Systems Inc. Meta Platforms Inc. BM Amazon.com Inc. Oracle Corp. 4.5% 3.9% 3.8% 3.8% 3.6% 3.5% 3.3% 3.3% 3.3% 3.2% Information Technology Materials Health Care Consumer Service Industrial Consumer Discretionary 66.44% 13.23% 10.64% 8.69% 0.76% 0.24% United States Germany Ireland Canada China 70.94% 8.25% 3.81% 3.51% 3.04% Taiwan Netherlands Japan South Korea Others* 2.95% 2.65% 1.45% 1.08% 2.31% * Israel 0.69%, Sweden 0.38%, Bermuda 0.35%, Switzerland 0.27%, Finland 0.24%, Italy 0.22%, Brazil 0.16% Sector Breakdown (in %) Top Holdings Weights Geographic Breakdown (in %) Source: GlobalX, Data as of 31st Dec 2024
- 21. Global X Semiconductor Index ETF Access to Leading Semiconductor Companies Direct exposure to some of the largest global companies that design, manufacture, and distribute semiconductors, including the large Asian foundry manufacturers Structural Tailwinds The Worlds Next Generation Technology will require Semiconductors to power it. High Growth Potential According to Fortune Business Insights, the global Semi Conductor market is projected to grow from USD 452.25 billion in 2021 to USD 803.15 billion by 2028 at a CAGR of 8.6% 21st July 2021 $99.81 million 0.45% (Plus applicable sales tax) Inception Date Net Assets Fund Psychographics 2022 2023 2024 -37.80 68.07 20.51 Calendar Year Performance (in %) Source: Global X, Data as of 31st Dec 2024 Management Fee
- 22. Global X Semiconductor Index ETF (Portfolio Composition) Broadcom Inc. Taiwan Semiconductor Manufactrg Co. Ltd. NVIDIA Corp. ASML Holding NV Advanced Micro Devices Inc. Qualcomm Inc. ARM HOLDINGS PLC ADR Texas Instruments Inc. Applied Materials Inc. Micron Technology Inc. Top Holdings Weights 13.0% 10.1% 9.4% 7.2% 4.9% 4.7% 4.2% 4.2% 3.8% 2.8% United States Taiwan Netherlands Japan South Korea Germany Ireland Switzerland Other/Cash 99.69% 0.31% Industry Breakdown (in %) Information Technology Industrial Services Geography Breakdown (in %) 63.2 12.5 12.3 5.3 2.7 1.7 1.5 0.6 0.2 Source: Global X, Data as of 31st Dec 2024, Industry and Geography Breakdown as of 28 Feb 2025
- 23. Global X MSCI MSCI China ETF All China Exposure Enable investors to access a basket of over 600 China securities listed in Hong Kong, China A and others via a single trade. Monetary and fiscal policy stimulus Launched at end September substantially elevated market sentiments. Further policy (consumption, property, and capital market related) roll out and execution could support real economy recovery. Major internet platforms Major internet platforms have delivered solid earnings through cost optimization and quality focused growth strategy. With the solid free cash flow generated by their core business, major internet 17th June, 2013 $1,176,01 million 0.18% Inception Date Net Assets Ongoing Charges Over a Year Fund Psychographics Calendar Year Performance (in %) 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 18.56 -11.43 -21.86 -21.30 27.62 22.30 -18.68 54.66 0.89 -7.27 Source: GlobalX, Data as of Feb 2025
- 24. Global X MSCI China ETF (Porfolio Composition) Source: GlobalX, Data as of 28th Feb 2025 Top Holdings Tencent Holdings Ltd. Alibaba Group Holding Limited Meituan Xiaomi Corp China Construction Bank Corporation PDD Holdings Inc JD.com, Inc BYD Company Limited Industrial and Commercial Bank of China Limited Bank of China Limited Class Weights 16.6% 11.1% 4.3% 4.3% 3.4% 3.3% 2.1% 2.1% 2% 1.7% 80% 13% 6% Hong Kong China A US ADR Source: Mirae Asset, Data as of 28 February 2025 Source: Factset, Mirae Asset, March 2025 Consumer Discretionary WEIGHT (%) Communication Services Financials Information Technology Industrials Consumer Staples Health Care Energy Materials Utilities Real Estate Cash 32.3 21.6 17.1 8.5 4.2 3.6 3.5 2.6 2.6 2.0 1.9 0.2 Sector Breakdown (in %) Geographic Breakdown (in %)
- 25. Tax Collected at Source (TCS) Charges under LRS* Type of Remittance Rate For Educational purposes (Loan taken from financial institution) For Educational purposes/ Medical treatment (Other than finance by loan) Purchase of overseas tour package Any other case Nil upto ₹10,00,000 0.5% above ₹10,00,000 Nil upto ₹10,00,000 5% above ₹10,00,000 5% till ₹10,00,000 20% thereafter Nil Upto ₹10,00,000 20% above ₹10,00,000 • 20% TCS for payments made under the LRS Scheme is deducted at the time of transfer by the Investor • However the Investor can claim a refund of the 20% TCS at the time of filing Income Tax Return after the end of the year • It is the responsibility of the Bank through whom the payment is being made to collect the TCS and deposit with the Govt.
- 26. Taxation of the Fund Type Rate* Long Term Capital Gain Tax (Minimum Holding Period 2 Years/24 Months) Short Term Capital Gain Tax 12.5% As per applicable slab rates, maximum being 30% *Plus Applicable Surcharge and Cess Kindly consult the same with your respective tax advisor
- 27. Share Class Type of Investors Min Ticket Size ($) Exit Load Management Fee (%) Total Other Expenses (%) On actuals Subject to a Cap of 0.25% R1 Capital Commitment equal to or more than USD 151,000 Not Applicable 1.50% R2 Capital Commitment equal to or more than USD 250,000 1.25% P Capital Commitment equal to or more than USD 151,000 1.50% Share Classes (Individual Investors) Note • It is a close-ended fund hence no exit load • Management Fees shall accrue daily on the NAV per Unit of the Fund • Class P investors may have to pay placement fees to the distributor/partner as per their arrangement between them
- 28. Tentative Drawdown Schedule The fund will do multiple closings, tentative first closing would be May 25 Post first closing, subsequent closing will be done weekly Investor coming in the subsequent closings will have to pay the cumulative contribution as on that date Investor Onboarded On May 25 Drawdown Quarter Ended Financial Years FY25-26 May 25 Jun-25 Sep-25 Dec-25 FY26-27 Apr-26 Total Contribution Investor Onboarded On Jun 25 Investor Onboarded Between 1st Jul to 30th Sep 25 Investor Onboarded Between 1st Oct to 31st Dec 25 26,000 25,000 51,000 - - 25,000 25,000 76,000 - 25,000 25,000 25,000 101,000 50,000 50,000 50,000 50,000 151,000 151,000 151,000 151,000 Investor Onboarded Between 1st Jan to 30th April 26 - - - 151,000 151,000 Drawdown Schedule for a Capital Commitment of USD 151,000
- 29. Onboarding and KYC for Resident Indians The investor onboarding will be entirely Digital Investors KYC details will be automatically pulled out from CVL/KRA through PAN and AADHAR of the Investor If the KYC is compliant, then no additional document required except Bank Proof Submission Bank Proof of the relevant Bank Account registered with us during application / subscription is required Submission of Physically Signed essential pages Transfer Money through Bank account registered with us through the LRS route Distributor Login Enter your Investors PAN Number and Verify Identity with Aadhaar OTP Fill Personal Details (auto-fetched from Aadhaar in many cases) Submit Application Review Application by KFintech Review and Approval By Investor Approval by FME and Trustee “New Investor KYC” or “e- KYC Registration.” Upload Documents (for Cases where details as per CKYC & Application details don’t match) Investor Onboarded and Welcome Email Sent to Investor If KYC is done If KYC not verified or no done earlier Once KYC is done
- 30. What is LRS and How it works Primary Reasons for LRS Transfers The Liberalized Remittance Scheme (LRS) is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD250,000 per financial year Allowable limit of USD250,000 is per individual per financial year, so if there is a family of 4 members, total USD1,000,000 can be transferred per financial year There is no restriction on the frequency or number of transactions during a financial year LRS Transfer is just like a Normal Transfer of Money with few added steps and additional details Every Bank has laid down steps as to how to transfer Money though the LRS route Family Offices and Institutions can invest though the OPI (Overseas Portfolio Investment) route where they can invest upto 50% of the Net Worth. Diversification of Investments Education & Training Travel & Tourism Overseas Gifting to Relatives Family Support Medical Treatment Option for GIFT City Investment
- 31. Our Global ETF Footprint Our global ETF business leverages the expertise of our teams throughout the world to create a client-centric platform that provides investors with innovative investment solutions. Equipping them with the tools to access global markets, gain exposure to disruptive themes and achieve their investment objectives. Particular USA Korea Canada Australia Japan Europe HK India Colombia Vietnam Total AUM (in US$ Mn) 55,185 43,721 27,888 6,171 2,985 2,467 2,439 1,728 544 45 1,43,173 Present in 11 countries Canada Colombia Brazil India Vietnam Australia Korea Hong Kong Japan USA UK Our Global ETF brand Source :Internal Data as on March 14, 2025
- 32. The information contained in this document is compiled from third party and publicly available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields/returns. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited - IFSC Branch (FME) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information, the FME, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. Financial products, instruments and investments are subject to market risks and returns, yields liquidity from these may vary depending on different factors that affect financial markets. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax or financial implications. This presentation is part of a privately placed placement memorandum meant for investment and intended only to those investors to whom it is directed/proposed to or only to the intended recipients/investors and is generally not available to retail investors or public at large for investments. If you are in receipt of the placement memorandum for this fund to which you are not the intended recipients, then it is requested to kindly return back the copy of the said documents to the sender or destroy/delete copies of the same. Disclaimers
- 33. Thank You