Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q1 FY21-22 Earnings Presentation
52 slides from Uti Asset Management's earnings presentation, Jul 29, 2021
Slide 1: Exchange filing cover letter - Investors Presentation
Ref: UTI/AMC/CS/SE/2021-22/099 Date: 29th July, 2021 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/Symbol: 543238/UTI
Slide 2: Investor Presentation UTI Q1 FY21-22
Investor Presentation UTI Q1 FY21-22 Conviction Capabilities Commitment Private and Confidential | Mumbai, India | June, 2021
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 • First to launch Equity Mutual Fund, Unit Linked Insurance Plan, Children’s Plan 12.01 Lakh Crore INR in AUM* • Focused Solely on Investment Management and related services • Presence across var
Slide 4: Our Vision and Mission
Our Vision and Mission VISION To be the most preferred Asset Manager MISSION Most trusted brand, admired by all stakeholders The largest Money Manager with global presence The best in class customer service provider The most preferred employer The most innovative wealth creator A socially responsibl
Slide 5: Focus is Essence of our Business
Focus is 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 Investors success leads to Bringing out the best ideas Long Term relationships
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 on key operations and technology strengthen existing relationship with our par
Slide 7: A Healthy Mix of Shareholders
A Healthy Mix of Shareholders 0.94% 2.28% 4.07% Mutual Funds 23.00% 16.76% 7.74% 15.24% Retail Shareholders 9.99% Foreign portfolio Investors Others 9.99% Alternate Investment Funds 9.99% UTI AMC is a professionally managed company T. Rowe Price International Ltd. – a global investment with no ident
Slide 8: Key Performance Indicators
Key Performance Indicators Assets Under Total AUM* MF QAAUM Other AUM^ Management INR 12,00,882 Crore INR 1,87,210 Crore INR 10,13,672 Crore Market NPS AUM MF QAAUM Equity + Hybrid QAAUM Share 28.60% 5.64% 5.33% Revenue EBITDA PAT Profitability 19% QoQ growth 25% QoQ growth 16% QoQ growth Flows & Gr
Slide 9: UTI Group
07 UTI Group 07
Slide 10: UTI AMC Structure
UTI AMC Structure UTI AMC Ltd. Investment Manager to Support Services to Investment Manager to PMS (includes EPFO, 100% Subsidiaries UTI Mutual Fund SUUTI Offshore Funds CMPFO, ESIC and Postal Life Funds) UTI International Ltd Manager for International (Offshore) Funds UTI Venture Fund Management Co
Slide 11: UTI Group Assets Under Management have increased by 22%
UTI Group Assets Under Management have increased by 22% June 2020 June 2021 15,726 (2%) 30,498 (2%) 1,33,631 (13%) 1,35,590 (14%) 1,76,338 (15%) 1,87,210 (16%) 1,202 (0%) 1,213 (0%) Total INR Total INR 9,83,203 Crore 12,00,882 Crore 6,97,054 (71%) 8,05,623 (67%) UTI MF PMS UTI Capital UTI RSL UTI In
Slide 12: Total Mutual Fund QAAUM has grown by 40% YOY
Total Mutual Fund QAAUM has grown by 40% YOY Total QAAUM INR Crores Equity + Hybrid QAAUM INR Crores YoY 40.1% YoY 48.8% 1,82,853 1,87,210 73,118 77,480 1,33,631 52,064 Jun 20 Mar 21 Jun 21 Jun 20 Mar 21 Jun 21 Market Share - Quarterly Average AUM Market Share – Equity & Hybrid QAAUM 5.43% 5.7% 5.64
Slide 13: Equity and Hybrid – Cornerstones of Growth
Equity and Hybrid – Cornerstones of Growth Equity QAAUM INR Crores Hybrid QAAUM INR Crores YoY 24.9% YoY 62.3% 23,471 22,367 54,009 50,751 18,789 33,275 Jun 20 Mar 21 Jun 21 Jun 20 Mar 21 Jun 21 Market Share – Equity QAAUM Market Share – Hybrid QAAUM 4.96% 5.15% 5.12% 6.2% 6.14% 5.88% Jun 20 Mar 21
Slide 14: Income and Liquid QAAUM growing steadily
Income and Liquid QAAUM growing steadily Income QAAUM INR Crores Liquid QAAUM INR Crores YoY 13.2% YoY 14.3% 43,062 43,184 24,092 21,874 19,329 37,789 Jun 20 Mar 21 Jun 21 Jun 20 Mar 21 Jun 21 Market Share – Income QAAUM Market Share – Hybrid QAAUM 2.84% 2.56% 2.5% 6.03% 6.66% 7.12% Jun 20 Mar 21 Ju
Slide 15: Passive Funds Gaining Traction
Passive Funds Gaining Traction Index & ETFs QAAUM INR Crores YoY 82.7% 44,672 42,581 24,449 Jun 20 Mar 21 Jun 21 Market Share – Index & ETFs QAAUM 13.45% 13.49% 13.09% Jun 20 Mar 21 Jun 21 Source: AMFI, Internal. 13
Slide 16: Trend in Net Sales
Trend in Net Sales Yearly Net Sales 12,565 8,985 6,804 INR Crores Equity & 5,308 Income Total Hybrid 1,203 (752) (1,181) FY 2019-2020 (1,418) ETFs & Index Liquid FY 2020-2021 (7,750) (14,137) Quarterly Net Sales 12,134 12,745 Q1FY21 Liquid Total Q2FY21 7,128 Equity & Income 5,832 Hybrid Q3FY21 1,804
Slide 17: Key Business Focus Areas
Key Business Focus Areas Focus on SIP Geographical Strong growth Spread Across Financial the Country Results and Balance Sheet Growth of Prudent International, Investment Leveraging Retirement and Management Digital Alternate Process Adoption Business 15
Slide 18: 1. a) Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress testing • Internal & External Audit team, Regular Compliance Check, • Product development Dedicated Risk Management Team process • Risk control self assessment Advisory • Review Mechanism • Equity Research • Debt & Mac
Slide 19: 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 20: 1. c) Embedding ESG considerations into our Investment Decisions
1. c) Embedding ESG considerations into our Investment Decisions • At UTI AMC, we believe in promoting good Environment, Social & Governance (ESG) standards in the companies we invest in and consider this as an essential part of our ownership responsibilities. • We have adopted a formal stewardship
Slide 21: 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 Crores) 400 339 348 350 327 334 291 290 300 278 264 More than 253 253 253 251 250 240 10 Years 76% 200 150 More than 100 5 Years 90% 50 0 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21
Slide 22: 3. a) Enabling Business Digitally
3. a) Enabling Business Digitally 24x7 Digital Channels Assisted Journeys integrated Building Community • Access at your convenience anytime anywhere • Customer service for Product & Investment enquiry- • Active engagement on multiple touch points across Social Media Inbound, Outbound & Email suppor
Slide 23: 3. b) Digital Client Acquisition Cycle
3. b) Digital Client Acquisition Cycle Investor Journey Reach Act Convert Engage Search Submit a Lead Invest Via Mobile App Remarketing via Google, SEO Social Facebook, Media Email/SMS/ YouTube Request a Call Back Invest Via Online Portal 1 Platforms WhatsApp notification Internet Retargeting Promot
Slide 24: 3. c) Acceptance of digitization reflected in growing online transactions
3. c) Acceptance of digitization reflected in growing online transactions Quarterly Online Gross Sales as % of Total Gross Sales 96.50% 96.19% Number of purchase transactions through Digital grew by 106.5% in Q1FY22 as compared to Q1FY21. 96.00% 95.50% 95.40% Number of digital SIP transactions grew
Slide 25: 3. d) Steps to increase digital presence are paying off
3. d) Steps to increase digital presence are paying off Number of Digital Purchase Transaction (in Lakhs) 45 41.4 40 35 For Customers 30 26 • Seamless accessibility through app 25 20.1 20 17.01 • Complete digitally-enabled KYC process 14.9 15 10 5 0 For Distributors FY 18 FY 19 FY 20 FY 21 Q1 FY 22
Slide 26: 4. a) Geographical Reach Across the Country
4. a) Geographical Reach Across the Country J&K 1 165 UFCs Himachal Pradesh 1 Uttarakhand Chandigarh 3 1 Haryana 5 Delhi 5 1,457 UTI AMC Rajasthan Uttar Pradesh Assam Employees* 13 4 10 Bihar Meghalaya 5 1 Tripura 1 Gujarat West Bengal Madhya Pradesh 15 5 13 Chhattisgarh 756 Sales Team 3 Odisha 6 Ma
Slide 27: 4. b) Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability 9% 9% 11% Total 29% 29% Jun’ 21 Mar’ 21 Jun’ 20 QAAUM 30% 62% 62% 59% Direct MFD Bank & Distributors 10% 9% 10% 32% 32% 30% Equity + Hybrid Jun’ 21 Mar’ 21 Jun’ 20 QAAUM 58% 59% 60% Source: RTA Data 25
Slide 28: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities MAAUM Jun’ 21 B30 B30 17% 25% UTI Mutual Industry Fund T30 75% T30 83% Improved awareness about investing in financial products vis Our broad client base also provides us with a number of a vis traditional investment opportunities, including cross-selling d
Slide 29: 5. a) UTI International Ltd. – Stellar performance during the year
5. a) UTI International Ltd. – Stellar performance during the year Assets under management increased by 94% from INR 15,726 Crore as of 30th June 2020 to INR 30,498 Crore as of 30th June 2021 Three Office Locations – Singapore, Dubai and London with a total of 26 staff of which 13 are women Clients
Slide 30: 5. b) UTI Retirement Solutions Ltd. – Leading from the front
5. b) UTI Retirement Solutions Ltd. – Leading from the front % 100% subsidiary PFRDA licensed for managing Pension funds Managing Government and non-Government NPS corpus UTI RSL manages 28.60% of Industry AUM as on 30th June 2021 UTI Retirement Solutions has shown AUM growth of 30% from INR 1,35,59
Slide 31: 5. c) UTI Capital – Expanding the Business Portfolio
5. c) UTI Capital – Expanding the Business Portfolio % 100% subsidiary of UTI AMC Ltd. mandated to manage and grow the private capital investment business Currently manages 2 active private debt funds with and AUM of INR 910 crore(1) UTI Structured Debt Opportunities Fund I – Launched in August 2017
Slide 32: Investments and Initiatives across the organization
Investments and Initiatives across the organization Research Investment management process through dynamic third party software and additional investments to improve internal and external interactions to collaborate frequently with company management, sell side analysts, other industry experts and m
Slide 33: 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 34: Modernizing our technology over multiple years
Modernizing our technology over multiple years 2016-2018 2019-2021 • Plan for movement of On premise data centre • Architected resilient technology transformation to support quick business to market • Set Cloud first and SaaS first Objective Infrastructure • Engaged Industry leading technology partn
Slide 35: Modernizing our technology over multiple years
Modernizing our technology over multiple years 2016-2018 2019-2021 • Using dynamic third party software for investment management process • Fund Accounting and Trade Management Research • Core Data Distribution • Wide range of information both domestic and international domain • Migrated Research Fu
Slide 36: Financial Snapshot
Financial Snapshot | UTI Mutual Fun, Haq, ek bektar zin
Slide 37: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings INR Crores Particulars Q1 FY 22 Q1 FY 21 %(+/-) Total Revenue from Operations 344 261 32% Other Income 6 9 (33%) Total Income 350 270 30% Fee & Commission exp. 1 1 -- Employee benefit expense 94 98 {4%} Depreciation & Amortization expenses
Slide 38: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR Crores Particulars Q1 FY 22 Q4 FY 21 %(+/-) Total Revenue from Operations 344 289 19% Other Income 6 4 50% Total Income 350 293 20% Fee & Commission exp. 1 1 -- Employee benefit expense 94 74 27% Depreciation & Amortization expens
Slide 39: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR Crores Particulars Q1 FY 22 Q1 FY 21 %(+/-) Total Revenue from Operations 276 210 31% Other Income 4 8 (50%) Total Income 280 218 28% Fee & Commission exp. 2 1 100% Employee benefit expense 85 89 {4%} Depreciation & Amortization expenses
Slide 40: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR Crores Particulars Q1 FY 22 Q4 FY 21 %(+/-) Total Revenue from Operations 276 244 13% Other Income 4 4 -- Total Income 280 248 13% Fee & Commission exp. 2 2 -- Employee benefit expense 85 63 35% Depreciation & Amortization expenses
Slide 41: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR Crores Particulars Q1 FY 22 Q1 FY 21 %(+/-) Q4 FY 21 %(+/-) MF Fees 206 136 51% 201 2% PMS Fees 6 4 50% 6 -- SUUTI Support Service Fees 3 3 -- 3 -- POP Fees & others 0 1 (100%) 1 (100%) Sale of Service - UTI AMC Standalone 215 144 49% 211 2% UTI Internati
Slide 42: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) 13 13 45 YE FY 20 45 YE FY 19 32 32 Operating Revenue Operating Expenses PAT Margin 12 16 YE FY 21 44 Q1 FY 22 44 32 28 40
Slide 43: UTI International – Consolidated Statement
UTI International – Consolidated Statement INR Crores For the Period Ended on June 30, 2021 For the Period Ended on June 30, 2020 Particulars (GBP in ‘000) INR Crores (GBP in ‘000) INR Crores AUM 29,62,513 30,498 16,96,630 15,726 Sale of Service 2,485 26 1,316 12 M2M gain from Investment 1,988 21 3,
Slide 44: Other Subsidiaries Financial highlights
Other Subsidiaries Financial highlights INR Crores UTI Retirement Solutions Ltd. UTI Capital Pvt. Ltd. UTI Venture Funds Mgmt. Co. Pvt. Ltd. Particulars Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 AUM 1,76,338 1,35,590 1,213 1,202 -- -- Sale of Services 21.8 3.3 1.6 1.9 -- -- M2M Gain on I
Slide 45: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 45% 44% 21% 41% 20% 19% 40% 17% 15% 35% 15% 15% 33% 31% 14% 31% 13% 30% 11% 10% 9% 25% FY18 FY19 FY20 FY21 Q1 FY 21-22* FY18 FY19 FY20 FY21 Q1FY21-22* #Q1 FY21-22 has been annualised #Q1 FY21-22 has been annualised 43
Slide 46: Annexures
Annexures UTI Mutual Fun, Haq, ek betar zi 44
Slide 47: Investor Services Key Indicators – Q1 FY 21-22
Investor Services Key Indicators – Q1 FY 21-22 1.34 Lakh 0.64 Lakh 10.86 Seconds Total Call Volume Outbound Total Call Volume Inbound Average Speed of Answer Contact Center 19 Lowest Complaints Ratio 1.11 Crore Total Complaints Received Folios against folios at 0.0001% Investor Services 53.67% INR 4
Slide 48: Breakup of Consolidated investments
Breakup of Consolidated investments Breakdown of Total Investment As on Jun 30, 2021 INR crore Investment in UTI MF Schemes 2,283 Equity 130 8.6% Arbitrage 923 11.9% Liquid & Debt 1,230 Total Investments: Offshore Funds 344 Rs. 2,871 crore Equity 319 Debt / Hybrid 25 79.5% Venture Funds, Other Equit
Slide 49: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman and Independent Director Dinesh Kumar Mehrotra has previously served as the Chairman and the Managing Director of LIC. He has also served as the Executive Director of International Operations at LIC. He hold a
Slide 50: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Rajeev Kakar | Independent Director Rajeev Kakar currently serves on the boards of various banks and financial institutions such as Eurobank Ergasias SA (Greece),Gulf International Bank (GIB Bahrain), Gulf International Bank (GIB Saudi Arabia) and Commercial
Slide 51: 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 52: Thank You
Thank You REGISTERED OFFICE: Registered Office: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051. Phone: 022 – 66786666. UTI Asset Management Company Ltd. (Investment Manager for UTI Mutual Fund) E-mail: investor.relations@uti.co.in Mutual Fund investments are subject to mark
UTI Asset Management Company — Q1 FY21-22 Earnings Presentation on 6ix