UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22406
Mirae Asset Discovery Funds
(Exact name of registrant as specified in charter)
625 Madison Avenue, 3rd Floor, New York, NY 10022
(Address of principal executive offices) (Zip code)
Citi Fund Services Ohio, Inc., 4400 Easton Commons, Suite 200, Columbus, OH 43219
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 205-8300
Date of fiscal year end: December 31
Date of reporting period: December 31, 2020
Item 1. Reports to Stockholders.
December 31, 2020
| Mirae Asset Discovery Funds | | | | | | | |
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Mirae Asset Discovery Funds |
Manager Commentary and Fund Performance (unaudited) | December 31, 2020 |
Mirae Asset Discovery Funds |
Manager Commentary and Fund Performance (unaudited) | December 31, 2020 |
| | | | Average Annual Total Returns | | | Expense Ratios(a) | | ||||||||||||||||||
| | | | One Year | | | Since Inception (11/13/19) | | | Gross | | | Net | | ||||||||||||
| Class I | | | | | 31.91% | | | | | | 34.16% | | | | | | 7.34% | | | | | | 1.15% | | |
| MSCI Emerging Markets Index(b) | | | | | 18.69% | | | | | | 22.34% | | | | | | | | | | | | | | |
Mirae Asset Discovery Funds |
Emerging Markets Great Consumer VIT Fund | Expense Examples (unaudited) |
Fund | | | | | | Beginning Account Value 7/1/20 | | | Actual Ending Account Value 12/31/20 | | | Hypothetical Ending Account Value 12/31/20 | | | Actual Expenses Paid During Period 7/1/20 – 12/31/20(1) | | | Hypothetical Expenses Paid During Period 7/1/20 – 12/31/20(1) | | | Annualized Expense Ratio During Period 7/1/20 – 12/31/20 | | | | | ||||||||||||||||||
Emerging Markets Great Consumer VIT | | | Class I | | | | $ | 1,000.00 | | | | | $ | 1,311.60 | | | | | $ | 1,019.36 | | | | | $ | 6.68 | | | | | $ | 5.84 | | | | | | 1.15% | | | |
Mirae Asset Discovery Funds | Schedule of Portfolio Investments |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| | | Shares | | | Value | | ||||||
Common Stocks (98.1%) | | | | | | | | | | | | | |
AL Rajhi Bank (Banks) | | | | | 2,050 | | | | | $ | 40,219 | | |
Alibaba Group Holding Ltd.* (Internet & Direct Marketing Retail) | | | | | 1,900 | | | | | | 55,515 | | |
Apollo Hospitals Enterprise Ltd. (Health Care Providers & Services) | | | | | 1,322 | | | | | | 43,777 | | |
Asian Paints Ltd. (Chemicals) | | | | | 1,478 | | | | | | 56,044 | | |
Ayala Land, Inc. (Real Estate Management & Development) | | | | | 59,481 | | | | | | 50,662 | | |
Azul SA ADR* (Airlines) | | | | | 340 | | | | | | 7,759 | | |
Banco BTG Pactual SA (Capital Markets) | | | | | 1,800 | | | | | | 32,626 | | |
Britannia Industries Ltd. (Food Products) | | | | | 1,023 | | | | | | 50,163 | | |
CD Projekt SA* (Entertainment) | | | | | 277 | | | | | | 20,403 | | |
China International Travel Service Corp. Ltd., Class A (Hotels, Restaurants & Leisure) | | | | | 2,100 | | | | | | 90,878 | | |
China Merchants Bank Co. Ltd. (Banks) | | | | | 12,500 | | | | | | 79,388 | | |
Clicks Group Ltd. (Food & Staples Retailing) | | | | | 1,100 | | | | | | 18,923 | | |
CP All Public Co. Ltd. (Food & Staples Retailing) | | | | | 24,000 | | | | | | 46,464 | | |
Credicorp Ltd. (Banks) | | | | | 200 | | | | | | 32,804 | | |
Detsky Mir PJSC (Specialty Retail) | | | | | 17,460 | | | | | | 32,107 | | |
FirstRand Ltd. (Diversified Financial Services) | | | | | 6,900 | | | | | | 24,074 | | |
Foshan Haitian Flavouring & Food Co. Ltd., A Shares (Food Products) | | | | | 1,680 | | | | | | 51,672 | | |
Galaxy Entertainment Group Ltd. (Hotels, Restaurants & Leisure) | | | | | 12,000 | | | | | | 93,264 | | |
Grupo Financiero Banorte Sab de CV* (Banks) | | | | | 6,900 | | | | | | 38,030 | | |
Haidilao International Holding Ltd. (Hotels, Restaurants & Leisure) | | | | | 7,000 | | | | | | 53,907 | | |
Halyk Savings Bank of Kazakhstan JSC GDR (Banks) | | | | | 2,050 | | | | | | 23,883 | | |
HDFC Bank Ltd.* (Banks) | | | | | 6,558 | | | | | | 129,187 | | |
Hindustan Unilever Ltd. (Household Products) | | | | | 3,606 | | | | | | 118,411 | | |
JD.com, Inc., Class A* (Internet & Direct Marketing Retail) | | | | | 2,550 | | | | | | 112,305 | | |
Jiangsu Hengrui Medicine Co. Ltd., Class A (Pharmaceuticals) | | | | | 4,060 | | | | | | 69,356 | | |
Kakao Corp. (Interactive Media & Services) | | | | | 224 | | | | | | 80,571 | | |
LG Household & Health Care Ltd. (Personal Products) | | | | | 62 | | | | | | 92,469 | | |
Li-Ning Co. Ltd. (Textiles, Apparel & Luxury Goods) | | | | | 17,000 | | | | | | 117,117 | | |
Lojas Renner SA (Multiline Retail) | | | | | 3,900 | | | | | | 32,852 | | |
Maruti Suzuki India Ltd. (Automobiles) | | | | | 51 | | | | | | 5,352 | | |
MercadoLibre, Inc.* (Internet & Direct Marketing Retail) | | | | | 29 | | | | | | 48,581 | | |
Mr. Price Group Ltd. (Specialty Retail) | | | | | 1,970 | | | | | | 22,889 | | |
| | | Shares | | | Value | | ||||||
NAVER Corp. (Interactive Media & Services) | | | | | 416 | | | | | $ | 112,339 | | |
Nestle India Ltd. (Food Products) | | | | | 368 | | | | | | 92,805 | | |
Network International Holdings PLC* (IT Services) | | | | | 4,300 | | | | | | 19,202 | | |
New Oriental Education & Technology Group, Inc. ADR* (Diversified Consumer Services) | | | | | 573 | | | | | | 106,469 | | |
New Oriental Education & Technology Group, Inc.* (Diversified Consumer Services) | | | | | 170 | | | | | | 30,526 | | |
Pinduoduo, Inc. ADR* (Internet & Direct Marketing Retail) | | | | | 722 | | | | | | 128,277 | | |
Ping An Healthcare & Technology Co. Ltd.* (Health Care Technology) | | | | | 4,000 | | | | | | 48,502 | | |
Ping An Insurance (Group) Co. of China Ltd., H Shares (Insurance) | | | | | 9,500 | | | | | | 116,693 | | |
Prosus NV (Internet & Direct Marketing Retail) | | | | | 620 | | | | | | 66,687 | | |
Proya Cosmetics Co., Ltd., Class A (Personal Products) | | | | | 1,834 | | | | | | 50,006 | | |
PT Bank Central Asia TBK (Banks) | | | | | 39,000 | | | | | | 94,028 | | |
Raia Drogasil SA (Food & Staples Retailing) | | | | | 6,900 | | | | | | 33,372 | | |
Rede D’or Sao Luiz SA* (Health Care Providers & Services) | | | | | 1,200 | | | | | | 15,732 | | |
Rumo SA* (Road & Rail) | | | | | 13,542 | | | | | | 50,582 | | |
Samsung Electronics Co. Ltd. (Technology Hardware, Storage & Peripherals) | | | | | 1,425 | | | | | | 106,511 | | |
Sberbank of Russia PJSC ADR (Banks) | | | | | 2,450 | | | | | | 35,319 | | |
Shanghai International Airport Co. Ltd., Class A (Transportation Infrastructure) | | | | | 10,600 | | | | | | 122,633 | | |
Suzano SA* (Paper & Forest Products) | | | | | 3,900 | | | | | | 44,085 | | |
TAL Education Group ADR* (Diversified Consumer Services) | | | | | 318 | | | | | | 22,740 | | |
TCS Group Holdings PLC GDR (Banks) | | | | | 930 | | | | | | 30,405 | | |
Tencent Holdings Ltd. (Interactive Media & Services) | | | | | 2,300 | | | | | | 168,060 | | |
Vipshop Holdings Ltd. ADR* (Internet & Direct Marketing Retail) | | | | | 2,396 | | | | | | 67,352 | | |
Wal-Mart de Mexico Sab de CV (Food & Staples Retailing) | | | | | 17,200 | | | | | | 48,330 | | |
Yandex NV, Class A* (Interactive Media & Services) | | | | | 546 | | | | | | 37,991 | | |
Yandex NV, Class A* (Interactive Media & Services) | | | | | 50 | | | | | | 3,479 | | |
TOTAL COMMON STOCKS (Cost $2,727,180) | | | | | | | | | | | 3,423,777 | | |
TOTAL INVESTMENTS (Cost $2,727,180) – 98.1% | | | | | | | | | | | 3,423,777 | | |
Other Net Assets (Liabilities) – 1.9% | | | | | | | | | | | 64,695 | | |
NET ASSETS – 100.0% | | | | | | | | | | $ | 3,488,472 | | |
Mirae Asset Discovery Funds | Schedule of Portfolio Investments |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| | | Value | | | % of Net Assets | | ||||||
Airlines | | | | $ | 7,759 | | | | | | 0.2% | | |
Automobiles | | | | | 5,352 | | | | | | 0.2% | | |
Banks | | | | | 503,263 | | | | | | 14.4% | | |
Capital Markets | | | | | 32,626 | | | | | | 0.9% | | |
Chemicals | | | | | 56,044 | | | | | | 1.6% | | |
Diversified Consumer Services | | | | | 159,735 | | | | | | 4.6% | | |
Diversified Financial Services | | | | | 24,074 | | | | | | 0.7% | | |
Entertainment | | | | | 20,403 | | | | | | 0.6% | | |
Food & Staples Retailing | | | | | 147,089 | | | | | | 4.2% | | |
Food Products | | | | | 194,640 | | | | | | 5.5% | | |
Health Care Providers & Services | | | | | 59,509 | | | | | | 1.8% | | |
Health Care Technology | | | | | 48,502 | | | | | | 1.4% | | |
Hotels, Restaurants & Leisure | | | | | 238,049 | | | | | | 6.9% | | |
Household Products | | | | | 118,411 | | | | | | 3.4% | | |
Insurance | | | | | 116,693 | | | | | | 3.3% | | |
Interactive Media & Services | | | | | 402,440 | | | | | | 11.4% | | |
Internet & Direct Marketing Retail | | | | | 478,717 | | | | | | 13.6% | | |
IT Services | | | | | 19,202 | | | | | | 0.5% | | |
Multiline Retail | | | | | 32,852 | | | | | | 0.9% | | |
Paper & Forest Products | | | | | 44,085 | | | | | | 1.3% | | |
Personal Products | | | | | 142,475 | | | | | | 4.1% | | |
Pharmaceuticals | | | | | 69,356 | | | | | | 2.0% | | |
Real Estate Management & Development | | | | | 50,662 | | | | | | 1.5% | | |
Road & Rail | | | | | 50,582 | | | | | | 1.5% | | |
Specialty Retail | | | | | 54,996 | | | | | | 1.6% | | |
Technology Hardware, Storage & Peripherals | | | | | 106,511 | | | | | | 3.1% | | |
Textiles, Apparel & Luxury Goods | | | | | 117,117 | | | | | | 3.4% | | |
Transportation Infrastructure | | | | | 122,633 | | | | | | 3.5% | | |
Other Net Assets | | | | | 64,695 | | | | | | 1.9% | | |
Total | | | | $ | 3,488,472 | | | | | | 100.0% | | |
| | | Value | | | % of Net Assets | | ||||||
Argentina | | | | $ | 48,581 | | | | | | 1.4% | | |
Brazil | | | | | 217,008 | | | | | | 6.3% | | |
China | | | | | 1,491,396 | | | | | | 42.7% | | |
Cyprus | | | | | 30,405 | | | | | | 0.9% | | |
Hong Kong | | | | | 93,264 | | | | | | 2.7% | | |
India | | | | | 495,739 | | | | | | 14.1% | | |
Indonesia | | | | | 94,028 | | | | | | 2.7% | | |
Kazakstan | | | | | 23,883 | | | | | | 0.7% | | |
Korea, Republic Of | | | | | 80,571 | | | | | | 2.3% | | |
Mexico | | | | | 86,360 | | | | | | 2.5% | | |
Netherlands | | | | | 66,687 | | | | | | 1.9% | | |
Peru | | | | | 32,804 | | | | | | 0.9% | | |
Philippines | | | | | 50,662 | | | | | | 1.5% | | |
Poland | | | | | 20,403 | | | | | | 0.6% | | |
Russia | | | | | 108,896 | | | | | | 3.1% | | |
Saudi Arabia | | | | | 40,219 | | | | | | 1.2% | | |
South Africa | | | | | 65,886 | | | | | | 1.9% | | |
South Korea | | | | | 311,319 | | | | | | 8.9% | | |
Thailand | | | | | 46,464 | | | | | | 1.3% | | |
United Arab Emirates | | | | | 19,202 | | | | | | 0.5% | | |
Other Net Assets | | | | | 64,695 | | | | | | 1.9% | | |
Total | | | | $ | 3,488,472 | | | | | | 100.0% | | |
Mirae Asset Discovery Funds |
Statement of Assets and Liabilities | December 31, 2020 |
| | | | Emerging Markets Great Consumer VIT Fund | | |||
| Assets: | | | | | | | |
| Investments, at value (Cost $2,727,180) | | | | $ | 3,423,777 | | |
| Foreign currency, at value (Cost $6,683) | | | | | 6,683 | | |
| Cash | | | | | 97,532 | | |
| Dividends and interest receivable | | | | | 2,960 | | |
| Receivable for investments sold | | | | | 14,985 | | |
| Receivable from Manager | | | | | 15,722 | | |
| Total Assets | | | | | 3,561,659 | | |
| Liabilities: | | | | | | | |
| Deferred foreign taxes | | | | | 13,974 | | |
| Payable for investments purchased | | | | | 23,835 | | |
| Accrued expenses: | | | | | | | |
| Administration | | | | | 5,929 | | |
| Fund accounting | | | | | 6,258 | | |
| Transfer agent | | | | | 328 | | |
| Custodian | | | | | 3,235 | | |
| Legal and audit fees | | | | | 19,256 | | |
| Trustee | | | | | 141 | | |
| Other | | | | | 231 | | |
| Total Liabilities | | | | | 73,187 | | |
| Net Assets | | | | $ | 3,488,472 | | |
| Net Assets consist of: | | | | | | | |
| Paid in Capital | | | | $ | 2,660,210 | | |
| Total distributable earnings/(loss) | | | | | 828,262 | | |
| Net Assets | | | | $ | 3,488,472 | | |
| Net Assets: | | | | | | | |
| Class I | | | | $ | 3,488,472 | | |
| Shares of Beneficial Interest Outstanding (unlimited number of shares authorized, no par value): | | | | | | | |
| Class I | | | | | 262,526 | | |
| Net Asset Value (redemption price per share): | | | | | | | |
| Class I | | | | $ | 13.29 | | |
Mirae Asset Discovery Funds |
Statement of Operations | For the year ended December 31, 2020 |
| | | | Emerging Markets Great Consumer VIT Fund | | |||
| Investment Income: | | | | | | | |
| Dividend income | | | | $ | 32,346 | | |
| Interest income | | | | | 13 | | |
| Foreign tax withholding | | | | | (3,280) | | |
| Total Investment Income | | | | | 29,079 | | |
| Expenses: | | | | | | | |
| Manager fees | | | | | 27,390 | | |
| Administration fees | | | | | 70,001 | | |
| Fund accounting fees | | | | | 48,487 | | |
| Transfer agent fees | | | | | 1,900 | | |
| Custodian fees | | | | | 20,049 | | |
| Trustee fees | | | | | 690 | | |
| Legal and audit fees | | | | | 47,646 | | |
| Other fees | | | | | 9,160 | | |
| Total Expenses before fee reductions | | | | | 225,323 | | |
| Waivers and/or reimbursements from the Manager(a) | | | | | (175,366) | | |
| Fees voluntarily reduced by the Administrator(a) | | | | | (18,114) | | |
| Total Net Expenses | | | | | 31,843 | | |
| Net Investment Income (Loss) | | | | | (2,764) | | |
| Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions: | | | | | | | |
| Net realized gains (losses) on investments | | | | | 305,602 | | |
| Net realized gains (losses) on foreign currency transactions | | | | | (5,846) | | |
| Foreign taxes on realized gains (losses) | | | | | (6,017) | | |
| Change in unrealized appreciation/depreciation on investments and foreign currency transactions | | | | | 566,114 | | |
| Net Change in foreign taxes on unrealized gains (losses) | | | | | (13,974) | | |
| Net Realized and Unrealized Gains (Losses) on Investments and Foreign Currency Transactions | | | | | 845,879 | | |
| Change in Net Assets Resulting From Operations | | | | $ | 843,115 | | |
| | | | Emerging Markets Great Consumer VIT Fund | | |||||||||
| | | | Year Ended December 31, 2020 | | | For the period Nov. 13, 2019(a) through Dec. 31, 2019 | | ||||||
| From Investment Activities: | | | | | | | | | | | | | |
| Operations: | | | | | | | | | | | | | |
| Net investment income (loss) | | | | $ | (2,764) | | | | | $ | (1,370) | | |
| Net realized gains (losses) on investments | | | | | 305,602 | | | | | | 20,017 | | |
| Net realized gains (losses) on foreign currency transactions | | | | | (5,846) | | | | | | (3,781) | | |
| Foreign taxes on realized gains | | | | | (6,017) | | | | | | — | | |
| Change in unrealized appreciation/depreciation on investments, foreign currency transactions and foreign taxes | | | | | 552,140 | | | | | | 130,491 | | |
| Change in net assets resulting from operations | | | | | 843,115 | | | | | | 145,357 | | |
| Change in net assets from distributions | | | | | (160,210) | | | | | | — | | |
| Change in net assets from capital transactions | | | | | 160,210 | | | | | | 2,500,000 | | |
| Change in net assets | | | | | 843,115 | | | | | | 2,645,357 | | |
| Net Assets: | | | | | | | | | | | | | |
| Beginning of period | | | | | 2,645,357 | | | | | | — | | |
| End of period | | | | $ | 3,488,472 | | | | | $ | 2,645,357 | | |
| Capital Transactions: | | | | | | | | | | | | | |
| Class I | | | | | | | | | | | | | |
| Proceeds from shares issued | | | | $ | — | | | | | $ | 2,500,000 | | |
| Dividends reinvested | | | | | 160,210 | | | | | | — | | |
| Change in net assets resulting from capital transactions | | | | $ | 160,210 | | | | | $ | 2,500,000 | | |
| Share Transactions: | | | | | | | | | | | | | |
| Class I | | | | | | | | | | | | | |
| Issued | | | | | — | | | | | | 250,000 | | |
| Reinvested | | | | | 12,526 | | | | | | — | | |
| Change in shares | | | | | 12,526 | | | | | | 250,000 | | |
Mirae Asset Discovery Funds |
Financial Highlights for the periods indicated | Selected data for a share of beneficial interest outstanding throughout the periods indicated |
| | | | | | | | | Investment Activities | | | Distributions to Shareholder From | | | | | | | | | | | | | | | Ratios of Average Net Assets | | | Supplemental Data | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Net Asset Value, Beginning of Period | | | Net Investment Income (Loss)(a) | | | Net Realized and Unrealized Gains (Losses) on Investments | | | Total from Investment Activities | | | Net Investment Income | | | Net Realized Gains From Investments | | | Total Distributions | | | Net Asset Value, End of Period | | | Total Return (excludes sales charge)(b)(c) | | | Ratio of Net Expenses to Average Net Assets(d) | | | Ratio of Net Investment Income (Loss) to Average Net Assets(d) | | | Ratio of Gross Expenses to Average Net Assets(d) | | | Net Assets, End of Period (000’s) | | | Portfolio Turnover(c) | | ||||||||||||||||||||||||||||||||||||||||||
Emerging Markets Great Consumer VIT Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended December 31, 2020 | | | | $ | 10.58 | | | | | | (0.01) | | | | | | 3.36 | | | | | | 3.35 | | | | | | — | | | | | | (0.64) | | | | | | (0.64) | | | | | $ | 13.29 | | | | | | 31.91% | | | | | | 1.15% | | | | | | (0.10)% | | | | | | 8.14% | | | | | $ | 3,488 | | | | | | 75% | | |
November 13, 2019 through December 31, 2019* | | | | $ | 10.00 | | | | | | (0.01) | | | | | | 0.59 | | | | | | 0.58 | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 10.58 | | | | | | 5.80% | | | | | | 1.15% | | | | | | (0.40)% | | | | | | 15.02% | | | | | $ | 2,645 | | | | | | 7% | | |
Mirae Asset Discovery Funds | Notes to Financial Statements |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
Mirae Asset Discovery Funds | Notes to Financial Statements |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total Investments | | ||||||||||||
Common Stock* | | | | $ | 1,514,678 | | | | | $ | 1,909,099 | | | | | $ | — | | | | | $ | 3,423,777 | | |
Total Investments | | | | $ | 1,514,678 | | | | | $ | 1,909,099 | | | | | $ | — | | | | | $ | 3,423,777 | | |
Mirae Asset Discovery Funds | Notes to Financial Statements |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| EM Great Consumer VIT Fund | | | | | 0.99% | | |
Mirae Asset Discovery Funds | Notes to Financial Statements |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| EM Great Consumer VIT Fund | | | 35% of the total monthly investment management fees derived from assets managed by the Sub-Manager | |
| EM Great Consumer VIT Fund | | | 12.5% of the total monthly investment management fee plus an additional 25% of those fees derived from assets managed by the Sub-Manager | |
| | | Class I | | |||
EM Great Consumer VIT Fund | | | | | 1.15% | | |
| | | Expires 12/31/22 | | | Expires 12/31/23 | | | Total | | |||||||||
EM Great Consumer VIT Fund | | | | $ | 44,805 | | | | | $ | 175,366 | | | | | $ | 220,171 | | |
| | | Name of Affiliate Broker/Dealer | | | Aggregate Amount of Brokerage Commissions Paid to Affiliate | | |||
EM Great Consumer VIT Fund | | | Mirae Asset Securities (Hong Kong) Ltd. | | | | $ | 439 | | |
Mirae Asset Discovery Funds | Notes to Financial Statements |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| | | Purchases | | | Sales | | ||||||
EM Great Consumer VIT Fund | | | | $ | 2,067,469 | | | | | $ | 2,030,370 | | |
Mirae Asset Discovery Funds | Notes to Financial Statements |
Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| | | Ordinary Income | | | Net Long-Term Capital Gains | | | Total Taxable Distributions | | |||||||||
EM Great Consumer VIT Fund | | | | $ | 160,210 | | | | | $ | — | | | | | $ | 160,210 | | |
| | | Undistributed Ordinary Income | | | Undistributed Capital Gains | | | Accumulated Earnings | | | Unrealized Appreciation (Depreciation)(a) | | | Total Accumulated Earnings (Deficit) | | |||||||||||||||
EM Great Consumer VIT Fund | | | | $ | 113,038 | | | | | $ | 58,124 | | | | | $ | 171,162 | | | | | $ | 657,100 | | | | | $ | 828,262 | | |
| | | Tax Cost | | | Tax Unrealized Appreciation | | | Tax Unrealized Depreciation | | | Net Unrealized Appreciation (Depreciation) | | ||||||||||||
EM Great Consumer VIT Fund | | | | $ | 2,752,711 | | | | | $ | 728,387 | | | | | $ | (57,321) | | | | | $ | 671,066 | | |
Mirae Asset Discovery Funds |
Mirae Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
Mirae Asset Discovery Funds
Cleveland, Ohio
February 25, 2021
Mirae Asset Discovery Funds | Supplemental Information (unaudited) |
Mirae Emerging Markets Great Consumer VIT Fund | December 31, 2020 |
| | | | Amount | | |||
| Emerging Markets Great Consumer VIT Fund | | | | $ | 160,210 | | |
Mirae Asset Discovery Funds |
Trustees and Officers (unaudited) | December 31, 2020 |
| Name and Year of Birth* | | | Positions(s) Held with the Trust | | | Term of Office and Length of Time Served | | | Principal Occupation(s) During Past 5 Years | | | Portfolios in Fund Complex Overseen by Nominee | | | Other Public Company and Investment Company Directorships Held by Nominee During the Past 5 Years | |
| Independent Trustees | | | | | | |||||||||||
| Enrique R. Arzac (1941) | | | Trustee and Chairman of the Audit Committee | | | 2010 to present | | | Professor of Finance and Economics at the Graduate School of Business, Columbia University since 1971 (Professor Emeritus since 2015). | | | 3 | | | Director of Adams Diversified Equity Fund; Director of Adams Natural Resources Fund; Director of Credit Suisse Asset Management Funds (investment companies) from 1990 to 2017; Director of Aberdeen Asset Management-advised Funds (investment companies) from 2009 – 2018; Director of Credit Suisse Next Investors, LLC (private investment company); Director of Credit Suisse Park View BDC, Inc. (private business development company) from 2015 to 2017; Director of ETF Securities USA LLC (investment company) since April 2018 | |
| Keith M. Schappert (1951) | | | Trustee, Chairman of the Board and Chairman of the Nominating and Governance Committee | | | Trustee (2010 to present); Chairman of the Board (January 2019 to present) | | | President of Schappert Consulting LLC (investment industry consulting) since 2008. | | | 3 | | | Director of The Commonfund (investment management); Director of Calamos Asset Management, Inc. (investment management) from August 2012 to March 2017; Director of the Angel Oak Funds Trust (investment management); Director of Metropolitan Series Fund, Inc. from August 2009 to June 2015 (investment management); Director of Met Investors Series Trust from April 2012 to June 2015 (investment management) | |
| Laurence R. Smith (1958) | | | Trustee | | | January 2020 to present | | | Chairman, CEO, CIO and Founder, Third Wave Global Investors (investment management) (2004 – present); CIO and Board Member, Horton Point (financial technology) (2017 – present). | | | 3 | | | Director, First Eagle BDC, LLC (private business development company) since 2019 | |
| Interested Trustee | | | | | | |||||||||||
| Joon Hyuk Heo, CFA (1974) | | | Trustee | | | December 2019 to present | | | Chief Executive Officer of Mirae Asset Global Investments (USA) LLC since December 2019, and Head of Global Fixed Income Investments since May 2011. | | | 3 | | | None | |
Mirae Asset Discovery Funds |
Trustees and Officers (unaudited) | December 31, 2020 |
| Name and Year of Birth* | | | Positions(s) Held with the Trust | | | Term of Office and Length of Time Served | | | Principal Occupation(s) During Past 5 Years | |
| Joon Hyuk Heo, CFA (1974) | | | President | | | December 2019 to present | | | Chief Executive Officer of Mirae Asset Global Investments (USA) LLC since December 2019, and Head of Global Fixed Income Investments since May 2011. | |
| Robert Shea (1966)** | | | Vice President Secretary | | | August 2016 to present March 2013 to August 2016 | | | Chief Marketing Officer of Mirae Asset Global Investments (USA) LLC since January 2018, Chief Operating Officer from March 2013 to January 2018; Chief Financial Officer of Horizons ETFs Management (US) LLC from February 2017 to March 2019; Director and Executive Vice President of Horizons ETFs Management (USA) LLC from October 2012 to February 2017. | |
| Thomas N. Calabria (1968) | | | Secretary Chief Compliance Officer | | | August 2016 to present February 2017 to present | | | Chief Compliance Officer of Mirae Asset Global Investments LLC since May 2014 and Horizons ETFs Management (US) LLC from February 2017 to March 2019; Chief Compliance Officer of Horizons ETFs Management (USA) LLC from May 2014 to February 2017. | |
| Joel Engle (1965) | | | Treasurer | | | 2010 to present | | | Senior Vice President of Citi Fund Services Ohio, Inc. since December 2007. | |
Mirae Emerging Markets Great Consumer VIT Fund
Statement Regarding Liquidity Risk Management Program Disclosure (unaudited) December 31, 2020
P.O. Box 183165
Columbus, Ohio 43218-3165
4249 Easton Way, Ste. 400
Columbus, Ohio 43219
Item 2. Code of Ethics.
(a) | The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as Exhibit 13 (a)(1). |
(b) | During the period covered by the report, with respect to the Registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, not any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2. |
Item 3. Audit Committee Financial Expert.
3(a)(1) | The Registrant’s board of directors has determined that the Registrant has at least one audit committee financial expert serving on its audit committee. |
3(a)(2) | The audit committee financial expert is Enrique R. Arzac, who is “independent” for purposes of this Item 3 of Form N-CSR. Mr. Arzac was appointed to the board effective 2010. |
Item 4. Principal Accountant Fees and Services.
For the fiscal years ended December 31, 2019 and December 31, 2020, the aggregate fees billed by Cohen & Company, Ltd. for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for the fiscal year for the Registrant are shown in the tables below.
(a) | Audit Fees: |
2019 | $ 29,000 |
2020 | $ 14,500 |
Audit fees include amounts related to the audit of the Registrant’s annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings.
(b) | Audit-Related Fees: |
2019 | $ 0 |
2020 | $ 0 |
(c) | Tax Fees: |
2019 | $ 8,000 |
2020 | $ 4,000 |
Represents the aggregate tax fee billed for professional services rendered by Cohen & Company Ltd. for tax compliance, tax advice and tax planning. Such tax services included the review of income and excise tax returns for the Registrant. Tax fees for 2019 and 2020 are for recurring fees for the preparation of the federal and state tax returns and procedures performed relating to the Registrant’s analysis of complex securities.
(d) | All Other Fees: |
2019 | $ 0 |
2020 | $ 0 |
For the fiscal years ended December 31, 2019 and December 31, 2020, there were no fees billed for professional services rendered by Cohen & Company Ltd. to the Registrant, other than the services reported in (a) through (c) of this item.
(e)(1) | Except as permitted by Rule 2-01 (c)(7)(i)(c) of Regulation S-X, the Mirae Asset Discovery Funds’ Audit Committee must pre-approve all audit and non-audit services provided by the independent accountants relating to the operations or financial reporting of the Funds. Prior to the commencement of any audit or non-audit services to a Fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law. |
(e)(2) | None of the services summarized in (b)-(d) above, were approved by the Audit Committee pursuant to Rule 2-01 (c)(7)(i)(c) of Regulation S-X. |
(f) | Not applicable |
(g) | For the fiscal years ended December 31, 2019 and December 31, 2020, the Aggregate non-audit fees billed by Cohen & Company Ltd. for services rendered to the Registrant and the Advisers and any entity controlling, controlled by, or under common control with the Advisers that provided ongoing services to the Registrant were $0 and $0, respectively. |
(h) | Not applicable |
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedule of Investments. |
(a) | Included as part of report to stockholders under Item 1. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that those disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. |
(b) | The Registrant’s principal executive officer and principal financial officer are aware of no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | The Registrant’s code of ethics pursuant to Item 2 of Form N-CSR is attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)__Mirae Asset Discovery Funds_______________________________
By (Signature and Title) /s/ Joon Hyuk Heo________________________________
Joon Hyuk Heo, President and Principal Executive Officer
Date _February 26, 2021_____________________________________________
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By (Signature and Title) _/s/ Joon Hyuk Heo _______________________________
Joon Hyuk Heo, President and Principal Executive Officer
Date __ February 26, 2021____________________________________________
By (Signature and Title) _/s/ Joel B. Engle___________________________________________
Joel B. Engle, Treasurer and Principal Financial and Accounting Officer
Date _ February 26, 2021______________________________________________