Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q1 FY24 Earnings Presentation
60 slides from Uti Asset Management's earnings presentation, Jul 26, 2023
Slide 1: Exchange filing cover letter
Ref. No.: UTI/AMC/CS/SE/2023-24/0338 Date: 25th July, 2023 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:
Slide 2: Investor Presentation UTI AMC Q1 FY 23-24
UTI Asset Management Company Limited Investor Presentation UTI AMC Q1 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 16.13 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 0.30% 4.85% 2.88% UTI AMC is a professionally managed 22.96% company with no identifiable promoters 8.70% State Bank of India, Bank of Baroda and 15.18% Life Insurance Corporation of India hold 15.22% 9.97% share capital each 9.97% 9.97% 9.97% T. Rowe Price International
Slide 8: Our Key Performance Indicators
Our Key Performance Indicators Assets Under Market Profitability Flows & Management Share Q1 FY 24 vs Q1 FY 23 Folios Total AUM* NPS AUM Revenue growth 53% Gross Sales@ INR 16,13,153 Crore Core Revenue growth# (1%) INR 2,14,304 Crore 26.57% MF QAAUM MF AUM EBITDA growth 159% SIP Gross Sales@ INR 2,4
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 Venture Fund Management Co. Ltd.
Slide 11: Group AUM for UTI AMC increased by ~16.76% YoY
Group AUM for UTI AMC increased by ~16.76% YoY June 2022 March 2023 June 2023 INR crore Total INR Total INR Total INR 13,81,545 crore 15,55,995 crore 16,13,153 crore 1,707 , 21,703 , 1,784 , 21,772 , 1,551 , 25,990 , 0.11% 1.39% 0.11% 1.35% 0.11% 1.88% 2,38,791 , 2,48,088 , 2,24,279 , 15.35% 15.38%
Slide 12: UTI MF - witnessed AUM growth in the quarter
UTI MF - witnessed AUM growth in the quarter Domestic MF Closing AUM as on 30th June 2023 Equity INR 77,223 crore ETFs & Index INR 95,057 crore Cash & Arbitrage INR 35,077 crore Hybrid INR 21,753 crore Income INR 25,090 crore MF Closing AUM INR 2,54,199 crore Domestic MF QAAUM for the quarter ended
Slide 13: Growth Trajectory - 10.62% YoY QAAUM growth for UTI MF
Growth Trajectory - 10.62% YoY QAAUM growth for UTI MF Total MF QAAUM Market Share – Total MF QAAUM INR crore Jun 22 5.94% 2,48,088 Mar 23 2,38,791 5.89% 2,24,279 Jun 23 5.76% Jun 22 Mar 23 Jun 23 Source: AMFI, Internal. 12
Slide 14: Keystones in Growth – 9.17% YoY growth in Equity QAAUM
Keystones in Growth – 9.17% YoY growth in Equity QAAUM Equity QAAUM Market Share – Equity QAAUM Market Share – Hybrid QAAUM INR crore Jun 22 Jun 22 5% 6.14% 72,811 70,494 66,693 Mar 23 Mar 23 Jun 22 Mar 23 Jun 23 4.63% 5.28% Hybrid QAAUM INR crore 21,117 20,612 Jun 23 Jun 23 4.47% 5.05% 20,162 Jun 2
Slide 15: Income QAAUM stabilizing
Income QAAUM stabilizing Income QAAUM Market Share – Income QAAUM Market Share – Cash & Arbitrage QAAUM INR crore Jun 22 Jun 22 3.01% 7.19% 26,085 24,859 23,144 Mar 23 Mar 23 Jun 22 Mar 23 Jun 23 3.02% 6.46% Cash & Arbitrage QAAUM INR crore 46,140 Jun 23 Jun 23 2.97% 6.27% 41,671 40,869 Jun 22 Mar 2
Slide 16: Passive Funds Gaining Traction – clocking 35.63% YoY growth
Passive Funds Gaining Traction – clocking 35.63% YoY growth Index & ETFs QAAUM Market Share – Index & ETFs QAAUM Jun 22 INR crore 12.53% 88,431 82,871 Mar 23 65,199 12.39% Jun 22 Mar 23 Jun 23 Jun 23 12.14% Source: AMFI, Internal. 15
Slide 17: Quarterly Net Sales for ETF & Index witness steady growth
Trend in Net Sales Quarterly Net Sales for ETF & Index witness steady growth INR crore Quarterly Net Sales 10,152 Q1FY23 4,874 5,362 3,496 3,791 2,774 1,953 Q1FY24 429 17 -286 -1,193 -5,169 Equity Hybrid ETFs & Index Cash & Arbitrage Income Total Yearly Net Sales INR crore 19,428 16,073 14,187 FY 20
Slide 18: Key Business Focus Areas
Key Business Focus Areas Growth of Consistent Geographical Development International, Spread Across of Human Retirement the Country Capital and 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 Monthly Gross SIP Inflow (INR Crore) Long Tenure SIP Book(1) 570 566 566 560 554 556 554 554 More than 549 10 Years 550 538 537 540 532 532 83% 530 525 520 520 More than 510 5 Years 500 490 91% JUN'22 JUL'22 AUG'22 SEP'22 OCT'22 NOV'22 DEC'22 JAN'
Slide 23: 3. a) Enabling Business Digitally
3. a) Enabling Business Digitally Assisted Journeys integrated Building Community 24x7 Digital Channels • Customer service for Product & Investment enquiry- • Active engagement on multiple touch points across Social Inbound, Outbound & Co-browsing support • Access at your convenience anytime anywher
Slide 24: 3. b) Digital Client Acquisition Cycle
3. b) Digital Client Acquisition Cycle Investor Journey Reach Act Convert Engage Submit a Lead Invest Via Mobile App Search Remarketing SEO Social via Google, Media Invest Now Invest Via Website Email/SMS/ Facebook, WhatsApp YouTube 1 Platforms notification Internet Retargeting Request a Call Back I
Slide 25: 3. d) Current Digital Ecosystem at UTI AMC
3. d) Current Digital Ecosystem at UTI AMC Riding on Best-in-class Technology & 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 Resource
Slide 26: 3. e) Growing online transactions reflect acceptance of digital
3. e) Growing online transactions reflect acceptance of digital Quarterly Online Gross Sales (as %age of Total Gross Sales) 100.00% 98.00% 95.73% 95.80% 96.00% 95.10% Number of digital SIP transactions recorded a 94.60% 94.60% 94.00% 93.90% growth of 20% in Q1 FY24 as compared to Q1 FY23. 92.00% 90.
Slide 27: 3. f) Steps to increase digital presence are paying off
3. f) 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) New Future Ready Digital Platforms for Investors
3. f) New Future Ready Digital Platforms for Investors Investor Journey Simplified Enhanced Assistance Secure & Scalable • Quick Onboarding • E-commerce portal- CART, Compare, etc • Secured login & transaction Modules • Simplified Dashboard • Innovative Calculators, Risk Profiler, etc with multi-lay
Slide 29: 3. g) Developing digital resources to be future ready
3. g) Developing digital resources to be future ready Grow the Core New Growth Avenues Optimize Cost • Identified Focus areas & Roadmap • Tapping emerging & underleveraged segments • Digitizing Operations to reduce cost • Enabling Sales force Digitally • Driving Digital Partnerships & Digital Sales
Slide 30: 4. a) Geographical Reach Across the Country
4. a) Geographical Reach Across the Country UTI Financial J&K 166 Centres 1 (UFCs) Chandigarh Himachal 1 Pradesh 1 Uttarakhand 3 Delhi Haryana 5 UTI AMC 5 Uttar 1,491 Employees* Assam Rajasthan Pradesh 4 10 15 Bihar 5 Meghalaya 1 Gujarat Madhya Pradesh West Bengal Core Sales 15 Tripura 5 Chhattisgar
Slide 31: 4. b) Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability Total QAAUM Equity + Hybrid QAAUM Jun ‘22 Jun ‘22 Direct 65 Direct 32 MFDs 26 MFDs 55 BND 9 BND 13 Mar ’23 Mar ‘23 Direct Direct 33 Direct 66 MFD MFDs 55 MFDs 25 Bank & Distributors BND 12 BND 9 Jun ‘23 Jun ’23 Direct 33 Direct 67 MFDs 55 MFd
Slide 32: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM June ‘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 78% attract new clients and positions us to capitalize on future gro
Slide 33: 5. a) UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets Under Management of INR 21,772 crore as of 30th June 2023 (INR 25,990 crore as of 30th June 2022) 4 Office Locations – Singapore, Dubai, London and Paris with a total of 28 staff & Clients spread across 35+ countries with top 5 being J
Slide 34: 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 26.57% of the NPS Industry AUM as on 30th June 2023 UTI Retirement Solutions has shown AUM growth o
Slide 35: 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 Structured Debt Op
Slide 36: 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 37: 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 38: Financial Snapshot
UTI Mutual Fund Financial Snapshot
Slide 39: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q1 FY 24 Q1 FY 23 %(+/-) Total Revenue from Operations 468 293 60% Other Income - 13 (100%) Total Income 468 306 53% Fee & Commission expenses - 1 (100%) Employee benefit expense 106 101 5% Net loss on fair value chan
Slide 40: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q1 FY 24 Q4 FY 23 %(+/-) Total Revenue from Operations 468 301 55% Other Income - 8 (100%) Total Income 468 309 51% Fee & Commission expenses - 1 (100%) Employee benefit expense 106 106 - Net loss on fair value c
Slide 41: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q1 FY 24 Q1 FY 23 %(+/-) Total Revenue from Operations 352 239 47% Other Income 1 1 - Total Income 353 240 47% Fee & Commission expenses 3 2 50% Employee benefit expense 89 86 3% Net loss on fair value changes - 7 (100%
Slide 42: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q1 FY 24 Q4 FY 23 %(+/-) Total Revenue from Operations 352 263 34% Other Income 1 9 (89%) Total Income 353 272 30% Fee & Commission expenses 3 2 50% Employee benefit expense 89 91 (2%) Net loss on fair value change
Slide 43: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR crore Particulars Q1 FY 24 Q1 FY 23 %(+/-) Q4 FY 23 %(+/-) MF Fees 220 225 (2%) 206 7% PMS Fees 6 6 - 6 - SUUTI Support Service Fees 2 3 (33%) 2 - POP Fees & others - - - - - Sale of Services - UTI AMC Standalone 228 234 (3%) 214 7% UTI International 29 3
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet INR crore Particulars Q1 FY 24 Q4 FY 23 %(+/-) Assets: Financial Assets 3,909 3,721 5% Non-Financial Assets 452 454 (1%) Total Assets 4,361 4,175 4% Liabilities & Equity: Financial Liabilities 186 254 (27%) Non-financial Liabilities 80 53 51% Equity 4,095 3,868 6% Total Li
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet INR crore Particulars Q1 FY 24 Q4 FY 23 %(+/-) Assets: Financial Assets 3,300 3,171 4% Non-Financial Assets 437 447 (2%) Total Assets 3,737 3,618 3% Liabilities & Equity: Financial Liabilities 168 225 (25%) Non-financial Liabilities 68 45 51% Equity 3,501 3,348 5% Total Liab
Slide 46: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) YE FY 21 YE FY 22 Operating Operating Margin 12 Margin 16 Operating Operating Expenses 32 Expenses 25 Operating Operating Operating Revenue 44 Revenue 41 Revenue Operating YE FY 23 Expenses Q1 FY 24* Operating Margin Operating Operating 14 Margin 13 Margin Opera
Slide 47: UTI International – Consolidated Statement of Profit & Loss
UTI International – Consolidated Statement of Profit & Loss For the Quarter Ended June 2023 For the Quarter Ended June 2022 Particulars (GBP in ‘000) INR crore (GBP in ‘000) INR crore AUM 26,53,740 21,772 27,08,554 25,990 Sale of Service 2,816 29 3,266 32 M2M gain from Investment 5,508 57 (3,505) (3
Slide 48: Other Subsidiaries Financial highlights
Other Subsidiaries Financial highlights INR crore UTI Retirement Solutions Ltd. UTI Alternatives Pvt. Ltd.* UTI Venture Funds Mgmt. Co. Pvt. Ltd. Particulars Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY 23 Q1 FY 24 Q1 FY 23 AUM 2,57,902 2,03,786 1,784 1,551 - - Sale of Services 27.7 24.1 1.8 1.1 - - M2M Gain on
Slide 49: Annexures
UTI Mutual Fund Annexures
Slide 50: Investor Services Key Indicators – Q4 FY 23
Investor Services Key Indicators – Q4 FY 23 1.42 lakh 0.65 lakh 9 seconds 0.01 lakh Total Call Volume Total Call Volume Average Speed of Live Chats Outbound Inbound Answer offered Contact Center • Self service IVR for NAV, SOA, Branch Locator etc. • Chat with Live Agent for Assistance • Inbound Call
Slide 51: Breakup of Consolidated investments
Breakup of Consolidated investments Breakdown of Total Investment As on 30th June 2023 INR crore Investment in UTI MF Schemes 2,519 Equity 766 8.5 % Arbitrage 675 6.4 % Liquid & Debt 1,078 Offshore Funds 506 Total 14.2 % Investments: INR 3,555 crore Equity 443 Debt / Hybrid 63 70.9 % Venture Funds,
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 52
Slide 53: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman & Independent Director Dinesh Kumar Mehrotra is a Non - Executive Chairman and Independent Director of the Company. He has previously served as the Chairman and the Managing Director of LIC. He has also served
Slide 54: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Rajeev Kakar | Independent Director 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 Intern
Slide 55: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Kiran Kumar Tarania | Non-Executive Nominee Director 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 34
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
Slide 58: Press Release: Business Highlights for Q1 FY 24
PRESS RELEASE UTI Asset Management Company Limited Consolidated net profit for the quarter ended June 30, 2023 is ₹ 234 crore. Business Highlights for Q1 FY 24: • UTI Mutual Fund’s (UTI MF’s) total market share for the Q1 FY 24 was at 5.76%. • For the quarter ended June 30, 2023, UTI MF’s average as
Slide 59: Press Release: Financial Highlights for Q1 FY 24
Financial Highlights for Q1 FY 24: • The Core Income for the April-June 2023 quarter stood at ₹ 283 crore, decreasing 1.4% YoY and up by 5.2% QoQ basis. • Total Revenue from Operations for the quarter was ₹ 468 crore, up 60% YoY and 56% QoQ. • The Operating Expenses for Q1 FY 24 were at ₹ 180 crore,
Slide 60: About UTI Asset Management Company Limited
About UTI Asset Management Company Limited: UTI Asset Management Company Limited (UTI AMC) is Investment Manager to UTI Mutual Fund. It is incorporated under the Companies Act, 1956 and was approved to act as an Asset Management Company for UTI Mutual Fund by SEBI on January 14, 2003. UTI AMC is reg