Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (November 2023)
25 slides from Edelweiss Financial Services's investor presentation, Nov 10, 2023
Slide 1: Exchange filing cover letter: Business Update on Mutual Fund Business
EW/Sec/2023-24/207 November 10, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Business Update on Mutual Fund Bus
Slide 2: Mutual Funds Business Update
US $ version Mutual Funds Business Update November 2023
Slide 3: Industry & Opportunity, Our Journey, Way Forward
Industry & Opportunity 01 Our Journey 02 Way Forward 03
Slide 4: Industry & Opportunity
Sw, Industry & Opportunity e
Slide 5: The MF Industry will continue to see structural growth
The MF Industry will continue to see structural growth MF Industry assets are growing Much more to be done to deepen the penetration 561 USD Bn Size of individual investment avenues as a % of GDP 2017 2023 93 22.2% 55 18.5% 105 16.2% 14.1% 246 11.9% 7 43 9.0% Share of equity & passives segment 100 3
Slide 6: There is an opportunity for young players to see significant growth
There is an opportunity for young players to see significant growth AAuM (USD Mn) Rank New Entrants AMC name Sep’17 Sep’23 CAGR % Sep’17 Sep’23 WhiteOak Groww Bajaj Finserv Mirae 1,330 16,725 53% 22 9 Samco NJ Navi Edelweiss 979 13,361 55% 26 13 New Entrants in Pipeline PPFAS 99 5,491 95% 35 19 Quan
Slide 7: Edelweiss AMC – Our Journey so far
Edelweiss AMC – Our Journey so far 6
Slide 8: To provide investment solutions that deliver enduring value for customers
Our Journey started in 2017 with a unique vision To provide investment solutions that deliver enduring value for customers 7
Slide 9: In the last 5 years, we focused on achieving size & relevance
In the last 5 years, we focused on achieving size & relevance Business Metrics Absolute Particulars Sep’17 Sep’23 Growth Edelweiss MF AuM (USD Mn) 1,035 13,521 13x MF AuM Market Share (%) 0.4% 2.4% 6x Edelweiss Equity & Hybrid AuM (USD Mn) 614 4,118 7x Equity & Hybrid AuM Market Share (%) 0.6% 1.3%
Slide 10: And also built a profitable business
And also built a profitable business Financial Metric Profit After Tax (USD Mn) 2.8 -0.7 H1FY18 H1FY24 Data source : Internal 9
Slide 11: During this journey, we made some important choices
During this journey, we made some important choices Innovation Strategic product choice to win in Fixed Income by being a leader in Passive Debt (~50% market share ) Investments Building an AMC driven by process not star fund managers, with a focus on consistent performance Distribution Building out
Slide 12: We focused on building the foundation for a strong retail franchise (1/4)
We focused on building the foundation for a strong retail franchise (1/4) Innovative launches in line with our product philosophy Equity Passive Fixed Income & Others Recently Listed IPO Fund Bharat Bond ETF / FoFs Momentum based Balanced PSU SDL Index Funds Advantage Fund MSCI Healthcare
Slide 13: We focused on building the foundation for a strong retail franchise (2/4)
We focused on building the foundation for a strong retail franchise (2/4) A process driven AMC that delivers consistency in performance Multi-Strategy Investment Capabilities ~70% of our Equity AuM is in 4–5-star rating bucket Strong team of 22+ professionals Scheme Name 5 Year Value Research Perfor
Slide 14: We focused on building the foundation for a strong retail franchise (3/4)
We focused on building the foundation for a strong retail franchise (3/4) Expanding capacity & deepening retail distribution #Branch Presence #Active Mutual Fund Distributors 9,200 5 28 1,100 2017 2023 Sep'17 Sep'23 #Sales Headcount Key Distribution Partners 120 Banks & NDs B2B Platform 40 Online Pa
Slide 15: We focused on building the foundation for a strong retail franchise (4/4)
We focused on building the foundation for a strong retail franchise (4/4) Engaging with customer; building digital convenience & driving customer satisfaction Marketing Initiatives Net Promoter Score 360-degree SIP Campaigns to drive 32% Brand Mindshare Series & Podcasts with CEO & CIOs -5% Q2FY18 Q
Slide 16: Our AUM has witnessed significant growth
Our AUM has witnessed significant growth Edelweiss MF AAuM Distribution AMC Core Bharat Bond MF AAuM: USD 13,361 Mn 7,098 6,263 Particulars CAGR % AMC Core AAuM 36% Total MF AAuM 55% MF AAuM: Industry AAuM 14% USD 979 Mn 979 - Sep'17 Sep'23 Figures in USD Mn, Data Source : AMF India; Figures are rou
Slide 17: And a high-quality equity book
And a high-quality equity book Equity & Hybrid AuM (USD Mn) & Market Share (%) Key Funds Strengthening Equity & Hybrid AuM (USD Mn) 1.34% Sep'17 Sep'23 1,141 4,118 0.64% 614 Sep'17 Sep'23 457 Monthly SIP book (USD Mn) 296 21 38 57 49 Balanced Advantage Mid Cap Fund Small Cap Fund Fund 1 CAGR % (Sinc
Slide 18: We have built a differentiated franchise
We have built a differentiated franchise Product innovation Investments Distribution Culture Ability to launch Investment franchise Focused on building truly Young, agile & diverse innovative first-to- focused on process & independent distribution leadership team that is industry products th
Slide 19: Edelweiss AMC – Way Forward
Edelweiss AMC – Way Forward 18
Slide 20: Our focus was on size, scale & relevance; next five years on building value
Our focus was on size, scale & relevance | Over the next 5 years, our focus will be on building value 1 Focus on growing profitable AuM – Equities, Hybrids & Alternatives 2 Deepen investment capabilities in research & talent bench in Alternatives 3 Expand our branch network & optimize existing resou
Slide 21: This is a phase where operating leverage will kick in
This is a phase where operating leverage will kick in Growth with operating leverage Growth Phase Investment Phase 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 AuM Growth 20
Slide 22: We are building a profitable high-quality franchise
We are building a profitable high-quality franchise Particulars 2018 2023 H1FY24 Edelweiss MF AuM 1,385 12,401 13,521 PAT -2.3 2.2 2.8 Net Worth 13.5 24.1 26.9 AuM figure refers to closing MF AuM; Figures in USD Mn; H1FY24 refers to data as on September’23 21
Slide 23: Summary
Summary 1 MF industry in India is stated for structural growth and we will continue to be a significant player at scale 2 Build an AMC that is process focused with a strong track record and widening distribution network 3 Strong and independent approach towards risk and governance 4 Build a young ,
Slide 24: Safe Harbour
Safe Harbour This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Asset Management Ltd (“EAML”). The results in future may vary from the forward-looking statements contained in this document due to various r
Slide 25: Safe Harbour
Safe Harbour Notes: MF – Mutual Funds, AMC – Asset Management Company, AAuM – Average Assets under Management, PAT – Profit After Tax, Abbreviations ETF – Exchange Traded Fund, FoF – Fund of Fund, SIP – Systematic Investment Plan, AMF India – Association of Mutual Funds in India Slide -4 Industry Au
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