Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q3 FY2024 Earnings Presentation
57 slides from Uti Asset Management's earnings presentation, Jan 29, 2024
Slide 1: Exchange filing cover letter for investor presentation
Ref. No.: UTI/AMC/CS/SE/2023-24/0395 Date: 29th January, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza Plot No. C/1 Phiroze Jeejeebhoy Towers G Block Bandra – Kurla Complex Dalal Street Bandra East Mumbai – 400 051. Mumbai – 400 001. Scrip Symbol: UTIAMC Scrip Code / Symbo
Slide 2: Investor Presentation UTI AMC Q3 FY 23-24
UTI ASSET MANAGEMENT COMPANY LIMITED Investor Presentation UTI AMC Q3 FY 23-24
Slide 3: UTI AMC – A Customer centric Global Asset Management Firm
UTI AMC – A Customer centric Global Asset Management Firm Pioneer in India • Oldest Mutual Fund in India & a trusted household brand • First to launch Equity Mutual Fund, Children’s Plan INR 17.59 lakh crore in AUM* • Focused Solely on Investment Management and related services • Presence across var
Slide 4: UTI AMC – Our Vision and Mission
UTI AMC – Our Vision and Mission VISION To be the most preferred Asset Manager MISSION The most trusted brand, admired by all stakeholders Asset Manager with a diverse suite of products & global presence Enable our customers to achieve their financial goals Employer of first choice A socially respon
Slide 5: Focus is the Essence of our Business
Focus is the Essence of our Business Long - Term Success Performance-driven with purpose Investment Investors Co-operation and Trust and Thinking Long- Excellence First Collaboration Mutual Respect Term Focus of our existence Investor success leads to Bringing out the best ideas Building meaningful
Slide 6: Our Continuous Endeavour is to
Our Continuous Endeavour is to Build and retain highly competent and Build excellent investment systems and Motivated investment team across asset classes processes. Further build our distribution capabilities and Execute key operations and technology strengthen existing relationship with our partne
Slide 7: Healthy Mix of Shareholders
Healthy Mix of Shareholders 0.15% 2.54% 5.57% UTI AMC is a professionally managed 8.28% 22.92% company with no identifiable promoters State Bank of India, Bank of Baroda and 15.51% Life Insurance Corporation of India hold 15.18% 9.95% share capital each 9.95% 9.95% 9.95% T. Rowe Price International
Slide 8: Our Key Performance Indicators
Our Key Performance Indicators Assets Under Market Profitability Flows & Management Share 9M FY 24 vs 9M FY 23 Folios Total AUM* NPS AUM Revenue growth 35% Gross Sales@ INR 17,59,150 Crore 26.12% Core Revenue growth# 0.3% INR 2,47,173 Crore MF QAAUM MF AUM EBITDA growth 60% SIP Gross Sales@ INR 2,72
Slide 9: UTI Group
UTI Mutual Fund UTI Group
Slide 10: UTI AMC Structure
UTI AMC Structure UTI AMC Ltd. Investment Manager Support Services Investment Manager PMS (includes EPFO, 100% Subsidiaries to UTI Mutual Fund to SUUTI to Offshore Funds CMPFO, ESIC and PLI Funds) UTI International Ltd. Manager for International (Offshore) Funds UTI Alternatives Pvt. Ltd. Manager fo
Slide 11: Group AUM for UTI AMC increased by ~17.5% YoY
Group AUM for UTI AMC increased by ~17.5% YoY December 2022 September 2023 December 2023 INR crore Total INR Total INR Total INR 14,97,777 crore 16,89,318 crore 17,59,150 crore 1,799 , 24,207 , 1,943 , 28,282 , 1,643 , 23,826 , 1.61% 0.11% 1.43% 0.11% 0.11% 1.59% 2,66,813 , 2,72,945 , 2,40,841 , 15.
Slide 12: UTI MF - witnessed AUM growth in the quarter
UTI MF - witnessed AUM growth in the quarter Domestic MF Closing AUM as on 31st December 2023 Equity INR 85,468 crore ETFs & Index INR 1,13,627 crore Cash & Arbitrage INR 30,925 crore Hybrid INR 25,771 crore Income INR 26,417 crore MF Closing AUM INR 2,82,207 crore Domestic MF QAAUM for the quarter
Slide 13: Growth Trajectory – 13.33% YoY QAAUM growth for UTI MF
Growth Trajectory – 13.33% YoY QAAUM growth for UTI MF Total MF QAAUM Market Share – Total MF QAAUM INR crore Dec 22 5.98% 2,72,945 2,66,813 Sep 23 5.68% 2,40,841 Dec 23 5.54% Dec 22 Sep 23 Dec 23 12 Source: AMFI, Internal.
Slide 14: Keystones in Growth – 17.63% YoY growth in Hybrid QAAUM
Keystones in Growth – 17.63% YoY growth in Hybrid QAAUM Market Share – Equity QAAUM Market Share – Hybrid QAAUM Equity QAAUM Dec 22 Dec 22 INR crore 4.82% 4.78% 80,455 78,291 73,631 Dec 22 Dec'22 Sep 23 Sep'23 Dec 23 Dec'23 Sep 23 Sep 23 4.25% 4.56% Hybrid QAAUM INR crore 24,701 Dec 23 Dec 23 23,038
Slide 15: Income QAAUM witnessing 24.5% YoY growth
Income QAAUM witnessing 24.5% YoY growth Market Share – Income QAAUM Market Share – Cash & Arbitrage QAAUM Income QAAUM INR crore Dec 22 Dec 22 2.91% 6.60% 26,881 27,760 22,299 Dec 22 Sep 23 Dec 23 Sep 23 Sep 23 3.04% 5.84% Cash & Arbitrage QAAUM INR crore 42,331 Dec 23 Dec 23 40,181 3.16% 5.29% 36,
Slide 16: Passive Funds Gaining Traction – clocking 35.82% YoY growth
Passive Funds Gaining Traction – clocking 35.82% YoY growth Index & ETFs QAAUM Market Share – Index & ETFs QAAUM Dec 22 INR crore 12.67% 1,03,923 98,421 81,580 Sep 23 12.62% Dec 22 Sep 23 Dec 23 Dec 23 12.71% 15 Source: AMFI, Internal
Slide 17: Quarterly Net Sales for ETF & Index witness steady growth
Trend in Net Sales Quarterly Net Sales for ETF & Index witness steady growth Quarterly Net Sales INR crore 4,731 2,364 2,589 2,227 1,885 1,264 1,036 857 Q3 FY23 -287 -271 -134 -491 Q2 FY24 -1,001 -2,135 Q3 FY24 -3,950 -3,746 -6,718 -9,159 Equity Hybrid ETFs & Index Cash & Arbitrage Income Total Sour
Slide 18: Key Business Focus Areas
Key Business Focus Areas Growth of Consistent Geographical Development International, Spread Across of Human Retirement & the Country Capital Alternate Business Attracting Prudent Right Leveraging Investment Opportunities Digital Management through Adoption Process Partnerships 17
Slide 19: 1. a) Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress testing • Regular Compliance Check • Product development • Dedicated Risk Management Team process • Internal & External Audit Team • Risk control self assessment Advisory • Review Mechanism • Equity Research • Debt & M
Slide 20: 1. b) Investment Management Process
1. b) Investment Management Process Equity Investment Process Fixed Income Investment Process Investment Process Approach • In house research team • Key objective is yield and duration management • Proprietary framework – qualitative & quantitative • Achieved through combination of top-down and bott
Slide 21: 1. c) Embedding ESG in our Investment Decisions
1. c) Embedding ESG in our Investment Decisions Sector-specific framework to understand and manage ESG Framework ESG risk consistently across portfolio holdings Responsible Investment Strategy Integration Helps in evaluating the ESG performance of a company Integrating material ESG ESG Database on a
Slide 22: 2. SIP to remain the cornerstone for AUM performance
2. SIP to remain the cornerstone for AUM performance Long Tenure SIP Book(1) Monthly Gross SIP Inflow (INR Crore) 573 572 566 565 More than 558 10 Years 89% 554 556 554 554 550 544 537 532 More than 5 Years 95% DEC'22 JAN'23 FEB'23 MAR'23 APR'23 MAY'23 JUN'23 JULY'23 AUG'23 SEP'23 OCT'23 NOV'23 DEC'
Slide 23: 3. a) Enabling Business Digitally
3. a) Enabling Business Digitally 24x7 Digital Channels Assisted Journeys integrated Building Community • Customer service for Product & Investment enquiry- • Active engagement on multiple touch points across Social • Access at your convenience anytime anywhere, New Mobile Inbound, Outbound & Co-bro
Slide 24: 3. b) New Age Digital Channels- #NEWFORYOU
3. b) New Age Digital Channels- #NEWFORYOU New UTI Buddy New Website & Mobile App for Investors- (office-on-the-go) Mobile First, secured & scalable Website & Mobile App for MFDs New state of the Art Contact Paperless & Contactless Digital Centre – Self-service IVR, Call, KYC- riding on Aadhar, Digi
Slide 25: 3. c) Current Digital Ecosystem at UTI AMC
3. c) Current Digital Ecosystem at UTI AMC Riding on Best-in-class Technology and partner Ecosystem Front Office Middle Office Back Office (Revenue generating & Customer facing) (Risk & Compliance) (Accounting, Technology, HR, Finance) Risk & Research & Human Brand Investment Compliance Fund Resourc
Slide 26: 3. d) Growing online transactions reflect acceptance of digital
3. d) Growing online transactions reflect acceptance of digital Quarterly Online Gross Sales (as %age of Total Gross Sales) 100.00% 98.00% Number of digital SIP transactions recorded 96.40% a growth of 10% in Q3 FY24 as compared 96.00% 95.10% 94.80% to Q3 FY 23 94.60% 94.60% 94.00% 92.00% 90.00% 34.
Slide 27: 3. e) Steps to increase digital presence are paying off
3. e) Steps to increase digital presence are paying off Number of Digital Purchase Transaction (in Lakhs) For Customers • Seamless accessibility through digital 120.00 115.84 channels 93.57 100.00 • Paperless & digitally enabled KYC process & multiple enablers for seamless digital 80.00 transactions
Slide 28: 3. f) Developing digital resources to be future ready
3. f) Developing digital resources to be future ready New Grow the Optimize Growth Core Cost Avenues • Identified Focus Areas • Tapping emerging • Digitizing operations to & Roadmap segments reduce cost • Enabling Sales force • Driving digital • Reimagining operating Digitally partnerships & sales v
Slide 29: 4. a) Geographical Reach Across the Country
4. a) Geographical Reach Across the Country UTI Financial J&K 194 Centres 1 (UFCs) Chandigarh Himachal 1 Pradesh 1 Uttarakhand 3 Delhi Haryana 5 UTI AMC 6 Uttar 1,496 Employees* Assam Rajasthan Pradesh 5 10 15 Bihar 7 Meghalaya 1 Gujarat Madhya Pradesh West Bengal Core Sales 16 Tripura 7 Chhattisgar
Slide 30: 4. b) Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability Total QAAUM Equity + Hybrid QAAUM Dec ’22 Dec ’22 Direct 66 Direct 31 MFDs 29 MFDs 57 BND 5 BND 12 Sep ’23 Sep ’23 Direct 68 Direct 32 MFDs 26 MFDs 57 BND 6 BND 11 Dec ’23 Dec ’23 Direct 68 Direct 33 MFDs 28 MFDs 56 BND 5 BND 11 Direct MFD Ba
Slide 31: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM December ‘23 Improved awareness about investing in financial products vis a vis traditional investment UTI Mutual Fund Our established presence in B30 cities has enabled us to T30 77% attract new clients and positions us to capitalize on future
Slide 32: 5. a) UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets Under Management of INR 28,282 crore as of 31st December 2023 4 Office Locations – Singapore, Dubai, London and Paris with a total of 29 staff & Clients spread across 35+ countries with top 5 being Japan, Switzerland, France, UK, Israe
Slide 33: 5. b) UTI Retirement Solutions Ltd. – Reaching New Heights
5. b) UTI Retirement Solutions Ltd. – Reaching New Heights % 100% subsidiary of UTI AMC Ltd. PFRDA licensed for managing Pension funds Managing Government and non-Government NPS corpus UTI RSL manages 26.12% of the NPS Industry AUM as on 31st December 2023 UTI Retirement Solutions has shown AUM grow
Slide 34: 5. c) UTI Alternatives Pvt. Ltd. – Expanding the Business Portfolio
5. c) UTI Alternatives Pvt. Ltd. – Expanding the Business Portfolio %% UTI Alternatives (formerly known as UTI Capital Pvt. Ltd.), 100% subsidiary of UTI AMC Ltd. mandated to manage and grow the private capital investment business Currently manages 5 active private debt funds (UTI SDOF I, II & III),
Slide 35: ESG Initiatives
ESG Initiatives • Initiated ESG framework development exercise for integrating essential ESG aspects into business operations • Framework to be based on international standards and help in strengthening existing management systems • Created Materiality Map by identifying key ESG aspects and prioriti
Slide 36: Financial Snapshot
UTI Mutual Fund Financial Snapshot
Slide 37: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings Particulars Q3 FY 24 Q3 FY 23 %(+/-) INR crore Total Revenue from Operations 449 295 52% Other Income 1 (2) (150%) Total Income 450 293 54% Fee & Commission expenses 1 1 - Employee benefit expense 105 104 1% Net loss on fair value changes
Slide 38: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q3 FY 24 Q2 FY 24 %(+/-) Total Revenue from Operations 449 404 11% Other Income 1 2 (50%) Total Income 450 406 11% Fee & Commission expenses 1 1 - Employee benefit expense 105 111 (5%) Depreciation & Amortization
Slide 39: Consolidated Statement of Profit & Loss – 9 Months Earnings
Consolidated Statement of Profit & Loss – 9 Months Earnings INR crore Particulars 9M FY 24 9M FY 23 %(+/-) Total Revenue from Operations 1321 966 37% Other Income 3 15 (80%) Total Income 1324 981 35% Fee & Commission expenses 1 2 (50%) Employee benefit expense 323 308 5% Depreciation & Amortization
Slide 40: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q3 FY 24 Q3 FY 23 %(+/-) Total Revenue from Operations 346 281 23% Other Income 1 - NA Total Income 347 281 23% Fee & Commission expenses 3 3 - Employee benefit expense 88 90 (2%) Depreciation & Amortization expenses 9
Slide 41: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q3 FY 24 Q2 FY 24 %(+/-) Total Revenue from Operations 346 311 11% Other Income 1 - NA Total Income 347 311 12% Fee & Commission expenses 3 2 50% Employee benefit expense 88 95 (7%) Depreciation & Amortization expe
Slide 42: Standalone Statement of Profit & Loss – 9 Months Earnings
Standalone Statement of Profit & Loss – 9 Months Earnings INR crore Particulars 9M FY 24 9M FY 23 %(+/-) Total Revenue from Operations 1010 828 22% Other Income 1 1 - Total Income 1011 829 22% Fee & Commission expenses 8 7 14% Employee benefit expense 271 266 2% Depreciation & Amortization expenses
Slide 43: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR crore Particulars Q3 FY 24 Q3 FY 23 %(+/-) 9M FY 24 9M FY 23 %(+/-) MF Fees 222 216 3% 666 666 - PMS Fees 7 7 - 20 20 - SUUTI Support Service Fees 2 3 (33%) 5 8 (38%) POP Fees & others - - - 1 1 - Sale of Services - UTI AMC Standalone 231 226 2% 692 695 (
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet INR crore Particulars 9M FY 24 FY 23 %(+/-) Assets: Financial Assets 4,664 3,721 25% Non-Financial Assets 481 454 6% Total Assets 5,145 4,175 23% Liabilities & Equity: Financial Liabilities 245 254 (4%) Non-financial Liabilities 89 53 68% Equity 4,811 3,868 24% Total Liabi
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet INR crore Particulars 9M FY 24 FY 23 %(+/-) Assets: Financial Assets 3,354 3,171 6% Non-Financial Assets 464 447 4% Total Assets 3,818 3,618 6% Liabilities & Equity: Financial Liabilities 209 225 (7%) Non-financial Liabilities 73 45 62% Equity 3,536 3,348 6% Total Liabilitie
Slide 46: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) YE FY 21 YE FY 22 Operating Operating Margin 12 16 Margin Operating Operating Expenses 32 25 Expenses Operating Operating Revenue 44 Revenue 41 Operating Revenue YE FY 23 9M FY 24* Operating Expenses Operatin Operating 14 Operating Margin Margin 12 g Margin Oper
Slide 47: Other Subsidiaries Financial highlights
Other Subsidiaries Financial highlights INR crore UTI Venture Funds Mgmt. Co. Pvt. UTI International Ltd. UTI Retirement Solutions Ltd. UTI Alternatives Pvt. Ltd. Ltd. Particulars 9M FY 24 9M FY 23 9M FY 24 9M FY 23 9M FY 24 9M FY 23 9M FY 24 9M FY 23 AUM 28,282 23,826 2,85,256 2,30,560 1,943 1,644
Slide 48: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.6 24% 0.55 21% 20% 0.5 46% 0.45 42% 18% 16% 16% 40% 0.4 15% 34% 0.35 31% 12% 12% 0.3 10% 0.25 9% FY 20 FY 21 FY 22 FY 23 9M FY 24 * FY 20 FY 21 FY 22 FY 23 9M FY 24 * *9M FY 24 figures have been annualised 47
Slide 49: Annexures
UTI Mutual Fund Annexures
Slide 50: Investor Services Key Indicators – Q3 FY 24
Investor Services Key Indicators – Q3 FY 24 1.74 lakh 0.65 lakh 5 seconds 0.12 lakh Total Call Volume Total Call Volume Average Speed of Live Chats Outbound Inbound Answer offered • Self service IVR for NAV, SOA, Branch Locator etc. • Chat with Live Agent for Assistance Contact Center • Inbound Call
Slide 51: Breakup of Consolidated investments
Breakup of Consolidated investments As on 31st December 2023 INR crore Breakdown of Total Investment Investment in UTI MF Schemes 2,373 Equity 795 Arbitrage 721 9% Liquid & Debt 857 11% Offshore Funds 565 Total Investments: Equity 107 INR 3,657 crore 15% 65% Debt / Hybrid 458 Venture Funds, Other Eq
Slide 52: UTI AMC Board of Directors - Composition
UTI AMC Board of Directors - Composition Geographical Board Women Directors Representation Composition Representation 1 3 2 3 6 7 Domestic Overseas Independent Directors Women Director Non-Executive Non-Independent Directors 51
Slide 53: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman & Independent Director Mr. Dinesh Kumar Mehrotra is the Non - Executive Chairman and an Independent Director of the Company. He has previously served as the Chairman and Managing Director of LIC. He has also s
Slide 54: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Rajeev Kakar | Independent Director Mr. Rajeev Kakar is an Independent Director of the Company. He currently serves on the boards of various banks and financial institutions such as Eurobank Ergasias SA (Greece),Gulf International Bank (GIB Bahrain), Gulf In
Slide 55: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Kiran Kumar Tarania | Non-Executive Nominee Director Mr. Kiran Kumar Tarania is a Non-Executive Nominee Director of the Company. He is currently General Manager – Treasury Division at Punjab National Bank. He is an accomplished finance professional with over
Slide 56: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer or the recommendation or solicitation of an offer or invitation to purchase or sell any securitie
Slide 57: Thank You
THANK YOU REGISTERED OFFICE: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Limited (Investment Manager for UTI Mutual Fund) E-mail: invest@uti.co.in Mutual Fund investments are subject to market risks, read all scheme re
UTI Asset Management Company — Q3 FY2024 Earnings Presentation on 6ix