Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q4 FY2023 Earnings Presentation
65 slides from Uti Asset Management's earnings presentation, Apr 26, 2023
Slide 1: Exchange cover letter for results filing
Ref. No.: UTI/AMC/CS/SE/2023-24/0303 Date: 26th April, 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 / Symbo
Slide 2: Investor Presentation UTI AMC Q4 & FY 22-23
Investor Presentation UTI AMC Q4 & FY 22-23 Mumbai, India | April 2023
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 15.56 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 0.31% 3.86% 6.07% 8.50% 22.96% 13.17% Mutual Funds 15.22% Retail Shareholders Foreign Portfolio Investors 9.97% Alternate Investment Funds 9.97% Others 9.97% UTI AMC is a professionally managed T. Rowe Price International Ltd. – a global company with no identifiable promo
Slide 8: Our Key Performance Indicators
Our Key Performance Indicators Assets Under Total AUM* MF QAAUM Other AUM^ Management INR 15,55,995 Crore INR 2,38,791 Crore INR 13,17,204 Crore Market NPS AUM MF AUM Equity AUM Share 26.78% 5.89% 4.63% Profitability Revenue growth (3%) EBITDA growth (10%) PAT growth (18%) FY 23 vs FY 22 Core Revenu
Slide 9: UTI Group
—— UTI Group A AK LL
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 Postal Life Funds) UTI International Ltd Manager for International (Offshore) Funds UTI Venture Fund Management Co
Slide 11: Group Assets Under Management increased by ~15.4% YoY
Group Assets Under Management for UTI AMC increased by ~15.4% YoY INR crore March 2022 March 2023 1,088 (0.08%) 1,707 (0.11%) 2,01,919 (15%) 2,40,709 (15%) 2,23,842 (17%) 2,38,791 (16%) 28,974 (2%) 21,703 (2%) Total INR December 2022 Total INR 13,48,905 crore 1,643 (0.11%) 15,55,995 crore 2,30,560 (
Slide 12: UTI MF – AUM for the quarter
UTI MF – AUM for the quarter Domestic MF Closing AUM as on 31st March 2023 Equity INR 68,985 crore ETFs & Index INR 82,371 crore Liquid INR 25,980 crore Hybrid INR 23,508 crore Income INR 21,830 crore MF Closing AUM INR 2,22,674 crore Domestic MF QAAUM for the quarter ended 31st March 2023 Equity IN
Slide 13: Outpacing the industry - ~6.7% YoY QAAUM growth
Outpacing the industry- ~6.7% YoY QAAUM growth, industry grew at 5.6% Total QAAUM INR crore YoY 6.68% 2,40,841 2,38,791 2,23,842 Mar 22 Dec 22 Mar 23 Market Share – Total QAAUM 5.83% 5.98% 5.89% Mar 22 Dec 22 Mar 22 Source: AMFI, Internal. 11
Slide 14: Persisting Growth – 2% growth in Equity QAAUM
Persisting Growth – 2% growth in Equity QAAUM Equity QAAUM INR crore Hybrid QAAUM INR crore YoY 2% YoY (9)% 73,631 26,444 24,815 70,494 24,101 69,287 Mar 22 Dec 22 Mar 23 Mar 22 Dec 22 Mar 23 Market Share – Equity QAAUM Market Share – Hybrid QAAUM 5.05% 4.61% 4.47% 5.17% 4.82% 4.63% Mar 22 Dec 22 Ma
Slide 15: Liquid QAAUM witnessing growth
Liquid QAAUM witnessing growth Income QAAUM INR crore Liquid QAAUM INR crore YoY 3.4% YoY (19.4)% 28,727 38,516 38,182 22,299 23,144 36,936 Mar 22 Dec 22 Mar 23 Mar 22 Dec 22 Mar 23 Market Share – Income QAAUM Market Share – Liquid QAAUM 2.96% 2.91% 3.02% 7.18% 6.97% 6.87% Mar 22 Dec 22 Mar 23 Mar 2
Slide 16: Passive Funds Gaining Traction – 33% YoY growth
Passive Funds Gaining Traction – clocking 33% YoY growth Index & ETFs QAAUM INR crore YoY 33% 81,580 82,871 62,447 Mar 22 Dec 22 Mar 23 Market Share – Index & ETFs QAAUM 12.8% 12.67% 12.39% Mar 22 Dec 22 Mar 23 Source: AMFI, Internal. 14
Slide 17: Trend in Net Sales
Trend in Net Sales Quarterly Net Sales for ETF & Index witness steady growth Quarterly Net Sales INR crore 6066 Q4FY22 4,731 3988 3950 2332 Q3FY23 1100 752 25 Q4FY23 -287 -705 -855 -719 -1130 -3499 -3,950 -4522 -5247 -8,291 Equity Hybrid ETFs & Index Income Liquid Total Yearly Net Sales 19428 INR cr
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 16
Slide 19: 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: 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: 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: 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) 580 573 560 554 554 556 549 More than 538 537 540 531 532 10 Years 525 521 520 520 86.68% 504 500 More than 5 Years 480 460 93.26% MAR'22 APR'22 MAY'22 JUN'22 JUL'22 AUG'22 SEP'22 OCT'22
Slide 23: 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 Inbound, Outbound & Email support • Access at your convenience anytime anywhere Social Medi
Slide 24: 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 Request a Call Back Invest Via Wh
Slide 25: Key Digital Initiatives undertaken in FY 23
3. c) Key Digital Initiatives undertaken in FY 23 Digital Campaigns reaching New Horizons Digital Ecosystem Enhancement Multiple Multi-Media Campaigns for driving SIP, Category, Quick Invest - Enabled quick Invest on website for instant identified schemes, Digital Assets via Email, SMS, WhatsApp, in
Slide 26: Current Digital Ecosystem at UTI AMC
3. d) Current Digital Ecosystem at UTI AMC Front Office Middle Office Back Office (Revenue generating & Customer facing) (Risk & Compliance) (Accounting, Technology, HR, Finance) Brand Investment Risk & Research & Human Message Management Compliance Fund Resource Management Customer Transaction Acco
Slide 27: Growing online transactions reflect acceptance of digital
3. e) Growing online transactions reflect acceptance of digital 100.00% Quarterly Online Gross Sales (as %age of Total Gross Sales) 98.00% Number of purchase transactions through Digital grew by 3% in Q4FY23 as compared to Q4FY22. 95.73% 95.80% 96.00% 95.10% 94.60% 93.90% 94.00% Number of digital SI
Slide 28: 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) 120.00 115.84 For Customers 100.00 93.57 • Seamless accessibility through digital 80.00 channels • Paperless & digitally enabled KYC process 60.00 41.40 & multiple enablers for seamless digital
Slide 29: Developing digital resources to be future ready
3. g) Developing digital resources to be future ready Grow the Core New Growth Avenues Optimize Cost • Identify Focus areas • Tap emerging underleveraged segments • Digitization of Operations • Drive Sales force Digitally • Drive Digital Partnerships & Digital Sales • Reimagining Operating Model wit
Slide 30: Geographical Reach Across the Country
4. a) Geographical Reach Across the Country UTI Financial J&K 1 166 Centres Chandigarh Himachal (UFCs) 1 Pradesh 1 Uttarakhand 3 Delhi Haryana 5 5 UTI AMC 1,377 Employees* Rajasthan Uttar Pradesh Assam 4 10 15 Bihar 5 Meghalaya 1 Gujarat Madhya Pradesh West Bengal Core Sales 15 Tripura 5 Chhattisgar
Slide 31: Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability 9% 9% 9% Total 27% 26% 25% Mar ‘22 Dec ’22 Mar ‘23 QAAUM 64% 65% 66% Direct MFD Bank & Distributors 12% 12% 12% 34% 33% 33% Equity + Hybrid Mar ‘22 Dec ’22 Mar ’23 QAAUM 54% 55% 55% Source: RTA Data 29
Slide 32: Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM Mar ‘23 B30 B30 17% 22% UTI Mutual Industry Fund Improved awareness about investing in financial Our broad client base also provides us with several products vis a vis traditional investment opportunities, including cross-selling different fund
Slide 33: UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets Under Management of INR 21,703 crore as of 31st March 2023 (INR 28,978 crore as of 31st March 2022) 4 Office Locations – Singapore, Dubai, London and Paris with a total of 28 staff & Clients spread across 35+ countries with top 5 being
Slide 34: 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 26.78% of the NPS Industry AUM as on 31st March 2023 UTI Retirement Solutions has shown AUM growth
Slide 35: UTI Capital Pvt. Ltd. – Expanding the Business Portfolio
5. c) UTI Capital Pvt. Ltd. – Expanding the Business Portfolio 100% subsidiary of UTI AMC Ltd. mandated to manage and grow the private capital investment business with total AUM of INR 1,707 crore UTI Structured Debt Opportunities Fund I – Launched in August 2017. Fund closed in May 2019. Fund in ex
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: Modernizing our technology over years
Modernizing our technology over years 2019-2022 2023-2024 • Plan for movement of On-premise data centre • Adopt Multi and Hybrid Cloud architecture • Set Cloud first and SaaS first Objective Infrastructure • Engaged Industry leading technology partner for • Adoption of Containerized deployment model
Slide 39: Investing to be Future Ready
Investing to be Future Ready 2019-2022 2023-2024 • 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 Fund to better track
Slide 40: Financial Snapshot
Financial Snapshot| UTI Mutual Fun, Haq, ek bektar zin
Slide 41: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q4 FY 23 Q4 FY 22 %(+/-) Total Revenue from Operations 301 301 - Other Income 8 4 100% Total Income 309 305 1% Fee & Commission expenses 1 1 - Employee benefit expense 107 115 (7%) Net loss on fair value changes - 15
Slide 42: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q4 FY 23 Q3 FY 23 %(+/-) Total Revenue from Operations 301 295 2% Other Income 8 (2) (500%) Total Income 309 293 5% Fee & Commission expenses 1 2 (50%) Employee benefit expense 107 104 3% Net loss on fair value c
Slide 43: Consolidated Statement of Profit & Loss – Year End Earnings
Consolidated Statement of Profit & Loss – Year End Earnings INR crore Particulars FY 23 FY 22 %(+/-) Total Revenue from Operations 1267 1319 (4%) Other Income 23 8 188% Total Income 1290 1327 (3%) Fee & Commission expenses 3 3 -- Employee benefit expense 414 406 2% Net loss on fair value changes - -
Slide 44: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q4 FY 23 Q4 FY 22 %(+/-) Total Revenue from Operations 264 262 1% Other Income 8 - NA Total Income 272 262 4% Fee & Commission expenses 2 2 - Employee benefit expense 91 101 (10%) Net loss on fair value changes - - - De
Slide 45: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q4 FY 23 Q3 FY 23 %(+/-) Total Revenue from Operations 264 280 (6%) Other Income 8 - - Total Income 272 280 (3%) Fee & Commission expenses 2 2 - Employee benefit expense 91 90 1% Net loss on fair value changes - -
Slide 46: Standalone Statement of Profit & Loss – Year End Earnings
Standalone Statement of Profit & Loss – Year End Earnings INR crore Particulars FY 23 FY 22 %(+/-) Total Revenue from Operations 1092 1059 3% Other Income 9 1 800% Total Income 1101 1060 4% Fee & Commission expenses 10 8 25% Employee benefit expense 357 362 (1%) Net loss on fair value changes - - -
Slide 47: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR crore Particulars Q4 FY 23 Q4 FY 22 %(+/-) FY 23 FY 22 %(+/-) MF Fees 206 228 (10%) 872 870 - PMS Fees 6 7 (14%) 26 27 (4%) SUUTI Support Service Fees 2 3 (33%) 10 11 (9%) POP Fees & others - - - 1 1 - Sale of Services - UTI AMC Standalone 214 238 (10%) 9
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet INR crore Particulars FY 23 FY 22 %(+/-) Assets: Financial Assets 3721 3554 5% Non Financial Assets 454 430 6% Total Assets 4175 3984 5% Liabilities & Equity: Financial Liabilities 254 271 (6%) Non-financial Liabilities 53 81 (35%) Equity 3868 3632 6% Total Liabilities & E
Slide 49: Standalone Balance Sheet
Standalone Balance Sheet INR crore Particulars FY 23 FY 22 %(+/-) Assets: Financial Assets 3172 3031 5% Non Financial Assets 446 419 6% Total Assets 3618 3450 5% Liabilities & Equity: Financial Liabilities 225 243 (7%) Non-financial Liabilities 45 47 (4%) Equity 3348 3160 6% Total Liabilities & Equi
Slide 50: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) 13 12 YE FY 20 45 44 YE FY 21 32 32 Operating Revenue Operating Expenses Operating Margin 16 14 YE FY 22 41 YE FY 23 37 25 23 48
Slide 51: UTI International – Consolidated Statement of Profit & Loss
UTI International – Consolidated Statement of Profit & Loss For the Year Ended March 2023 For the Year Ended March 2022 Particulars (GBP in ‘000) INR crore (GBP in ‘000) INR crore AUM 21,30,390 21,703 29,10,427 28,974 Sale of Service 13,338 129 12,445 127 M2M gain from Investment (6295) (61) 4,346 4
Slide 52: Other Subsidiaries Financial highlights
Other Subsidiaries Financial highlights INR crore UTI Retirement Solutions Ltd. UTI Capital Pvt. Ltd. UTI Venture Funds Mgmt. Co. Pvt. Ltd. Particulars FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 AUM 240709 201919 1707 1,088 - - Sale of Services 101.5 91.4 5.6 5.3 - - M2M Gain on Investment 3.7 0.9 4.6 1.9
Slide 53: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.5 24% 0.45 21% 42% 40% 0.4 18% 16% 16% 34% 14% 0.35 34% 15% 31% 12% 0.3 12% 10% 0.25 9% FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23 51
Slide 54: Annexures
Annexures UTI Mutual Fun, Haq, ek betar zi 52
Slide 55: Investor Services Key Indicators – Q4 FY 23
Investor Services Key Indicators – Q4 FY 23 1.52 lakh 0.64 lakh 8 seconds 0.18 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 56: Breakup of Consolidated investments
Breakup of Consolidated investments As on 31st March 2023 INR crore Breakdown of Total Investment Investment in UTI MF Schemes 2,281 Equity 698 Arbitrage 761 9.3% 6.8% Liquid & Debt 822 Offshore Funds 445 Total 13.7% Investments: Equity 386 INR 3,248 crore Debt / Hybrid 59 70.2% Venture Funds, Other
Slide 57: UTI AMC Board of Directors - Composition
UTI AMC Board of Directors - Composition 6 Board Composition 1 3 20% Independent Directors 30% Non-Executive Non-Independent Directors Women Geographical Whole Time Director Directors Representation Representation 70% Women Director Domestic Overseas 55
Slide 58: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman & 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 holds a
Slide 59: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Deepak Kumar Chatterjee | Independent Director Prior to joining the Company, Deepak Kumar Chatterjee was associated with SBI Funds Management Private Limited as the Managing Director and Chief Executive Officer and SBI Capital Markets Limited as an Executive
Slide 60: Experienced and Independent AMC Board
Experienced and Independent AMC Board Ms. Jayashree Vaidhyanathan | Independent Director Jayashree Vaidhyanathan currently serves as a Co-Founder and CEO of BCT Digital, a technology company specializing in AI and Predictive analytics. Prior to BCT, she was associated with Scope International Privat
Slide 61: 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 62: 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: invest@uti.co.in Mutual Fund investments are subject to market risks,
Slide 63: Press Release: Financial Highlights for FY 23
PRESS RELEASE UTI AMC announces Consolidated Net Profit at INR 437 crore for FY2022-23. UTI Group AUM stands at INR 15.56 lakh crore. Financial Highlights for FY 23 • Revenue from Operations for the financial year 2022-23 stood at ₹1,267 crore, down by 3.9% from FY 2021-22. The Core Revenue from Ope
Slide 64: Press Release: Business Highlights for FY 23
PRESS RELEASE Commenting on the performance Mr. Imtaiyazur Rahman, Managing Director & Chief Executive Officer, UTI AMC said, “As the brand UTI is completing six decades of being a front runner in promoting the development of financial sector, we remain steadfast on our commitment towards our stakeh
Slide 65: Press Release: About UTI Asset Management Company Limited
PRESS RELEASE 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. U
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