Mirae Asset Global Investments Launches First Mutual Funds in the U.S.

NEW YORK, Sept. 27 /PRNewswire/ -- Mirae Asset Global Investments, one of the world's largest emerging market equity investment managers, today announced the launch of its first six mutual funds in the U.S.  The Mirae Asset Discovery Funds aim to take advantage of the macroeconomic effects currently redefining the world's emerging market economies.

"We are emerging market experts.  It's what we do," said Jay (Hun Jun) Jang, President and CEO of Mirae Asset Global Investments (USA).   "Because of our global portfolio management capabilities, we are able to offer single-country, regional and global emerging market funds.  We look for companies with a sustainable competitive advantage by implementing the research-intensive, bottom-up approach used since Mirae Asset's inception in 1997."

The mutual funds, which have Class A, C and I shares, include:

• Global Emerging Markets Sector Leader Fund (MALGX, MCLGX, MILGX)
• Asia Sector Leader Fund  (MALAX, MCLAX, MILAX)
• China Sector Leader Fund (MALCX, MCLCX, MILCX)
• Brazil Sector Leader Fund (MALBX, MCLBX, MILBX)
• Global Emerging Markets Great Consumer Fund (MECGX, MCCGX, MICGX)
• Asia Great Consumer Fund (MGCEX, MGCCX, MGCIX)

Mirae Asset's research concludes that ongoing socioeconomic changes in emerging market nations will continue to support domestic business expansion. Mirae Asset seeks to capture the beneficial impact these macroeconomic effects will have on emerging market equities through the firm's Sector Leader and Great Consumer investment approaches.  

The "Sector Leader" Funds

The Sector Leader funds invest in companies that Mirae Asset believes to be capable of achieving or maintaining a dominant position within their respective industries.  Mirae Asset judges a company based on the sustainability of its long-term business model and the competitive advantage of its business strategy.  Informed by years of on-the-ground research, the firm weighs a stock's potential against a backdrop of the long-term macroeconomic trends in the economy where the company conducts business. The investment strategy employs portfolio construction and risk management techniques designed to broaden each Fund's exposure across a range of industries.

The "Great Consumer" Funds

Mirae Asset defines the "Great Consumer" effect as the collective market force of emerging market nations' rapidly growing middle class.  As wealth increases broadly within the traditionally low per capita GDP(1) economies of the world, consumers' newfound purchasing power can help introduce attractive – and in some cases never previously available – investment opportunities. Mirae Asset believes population growth, increasing industrialization, income expansion and other macro trends will help to sustain the rapid growth of many emerging market economies as their middle classes seek to accumulate wealth and pursue a higher quality of life.  In fact, a recent McKinsey & Co. report estimated that the emerging middle class currently spends $6.9 trillion annually, and this figure is expected to rise to $20 trillion over the next 10 years.(2)

The two Great Consumer funds employ a bottom-up methodology, investing in companies across a range of sectors that stand to benefit from increasing domestic consumption in the emerging markets. An attractive Great Consumer stock can be found not only among the consumer staples and consumer discretionary sectors, but also within any industry for which growing domestic consumption can be a catalyst for profits, either directly or indirectly.  

Significant Long-Range Themes

Mirae Asset's investment strategy is consistent with the work of many global economists and researchers who have for years tracked the evolution of the world's economies and the major themes that shape them.

With numerous publications in this area, the World Bank estimates that the global middle class is likely to grow from 430 million in 2000 to 1.2 billion in 2030. According to Euromonitor International, consumer spending in emerging markets is forecast to grow by an average annual rate of 10.4% between 2010 and 2020 in U.S.-dollar terms with China, India, Brazil and Russia being the largest consumer markets in terms of total spending.(3) Similarly, the IMF reports that emerging market economies are likely to grow at least twice as fast as the U.S. in coming years, and says that the share of emerging and developing economies in world GDP is expected to overtake advanced economies by 2014.  

Mirae Asset, one of the world's most experienced emerging market equity investment managers, has created an innovative opportunity for U.S. investors by designing investable products based on these themes.  

Portfolio Management

Mirae Asset's investment professionals in New York, Hong Kong and Sao Paulo manage the six mutual funds. Mirae Asset has made a significant investment in state-of-the-art telecommunications equipment through which portfolio managers around the globe collaborate efficiently and seamlessly.  Because the strategies are predominantly bottom-up, Mirae Asset portfolio managers conduct primary research and collaborate with analysts and researchers within the firm to make their investment decisions.  As of June 30, 2010, the firm had more than 160 investment professionals worldwide.

Investments in the Funds involve risk, including the possible loss of principal. This press release is not a solicitation to buy nor offer to sell securities. An offering can only be made by prospectus, which can be obtained from Mirae Asset USA.

An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. This and other important information about the investment company can be found in the Fund's prospectus. To obtain a prospectus, please contact your financial advisor or please call 1-800-335-3412. Please read the prospectus carefully before investing.

The Mirae Asset Discovery Funds are distributed by Funds Distributor, LLC.

Mirae Asset Global Investments

Mirae Asset Global Investments is one of the world's largest investment managers in emerging market equities.  With over 500 employees and more than 160 dedicated investment professionals, Mirae Asset portfolio management teams are located in Brazil, China, Hong Kong, India, Korea, the United States and Vietnam.  Headquartered in Seoul, South Korea, the firm manages over $50 billion in assets globally, of which more than $30 billion is invested in emerging market equities (as of June 30, 2010).  

Mirae Asset Global Investments (USA)

Mirae Asset Global Investments (USA) is a registered investment advisor focused on providing emerging market equity investment advisory services to institutions and mutual funds.

(www.miraeasset.com)

(1)  Gross domestic product (GDP) is defined as the market value of goods and services produced by labor and property in a single country.

(2)  McKinsey & Co. is neither affiliated with, nor employed by, Mirae Asset Global Investments.

(3)  Euromonitor International is neither affiliated with, nor employed by, Mirae Asset Global Investments.

SOURCE Mirae Asset Global Investments