Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Investor Presentation (July 2023)
25 slides from Uti Asset Management's investor presentation, July 2023
Slide 1: UTI Core Equity Fund
UTI Core Equity Fund (An open ended equity scheme investing in both large cap and mid cap stocks) SCHEME Large Cap Large & Mid Multi Cap Value Mid Cap CATEGORY Fund Cap Fund Fund Fund Fund STOCK Low Moderate High Concentration Concentration Concentration CONCENTRATION (> 60 stocks) (40 - 60 stocks)
Slide 2: Team Powered by Process
TEAM Team driven approach Discussion & Review POWERED BY PROCESS Standardized research methodology Companies get Operating Cash Flow (OCF) & Return on Capital Employed (RoCE) ratings based on their previous 5 years financials 3 Tier Rating System OCF C1 C2 C3 RoCE R1 R2 R3 Rating Rating HIGH C
Slide 3: Product Spectrum on Risk v/s Return Grid (Active Funds)
Product Spectrum on Risk v/s Return Grid (Active Funds) CORE ALLOCATION CORE SATELLITE ALLOCATION TACTICAL ALLOCATION UTI B&FS Fund UTI Healthcare Fund UTI T&L Fund RETURN POTENTIAL UTI India Consumer Fund UTI Dividend Yield Fund UTI Focused Equity Fund UTI Infrastructure Fund UTI MNC Fund UTI Core
Slide 4: Value Philosophy: Core Tenets
Value Philosophy CORE TENETS 01 02 03 Valuation RoCE > Cost of Capital Sound Businesses - Below historical averages - Past Track Record - Fundamentally resilient - Relative value - Future Growth Potential - Corporate Governance A disciplined valuation approach that attempts to benefit from the fluct
Slide 5: Exclusion Filter
Exclusion Filter Poor operating cash Companies with Companies that flow and/or weak debt servicing could experience a RoCE through an challenges significant decline in entire cycle terminal value Weak corporate Mature governance or poor businesses with treatment of minority at expensive shareholders
Slide 6: Investment Strategy
Investment Strategy Relative valuation versus History or peer Growth opportunities at Preferred metric for quality reasonable valuations companies provides margin Preferred metric for picking of safety mid & small-caps UTI Core Equity Fund Mean reversion Exposure to companies, preferably leaders, wh
Slide 7: Investment Strategy (contd.)
Investment Strategy (contd.) 1 Evaluate businesses based on their ability to generate RoCEs > Cost of Capital over the entire cycle & benefit from mean reversion 2 Margin of safety – stocks trading cheaper relative to their history or peers 3 In picking mid and small cap stocks, the strategy display
Slide 8: Investment Framework
Investment Framework Relative Value 01 Investment Style Preference for stocks trading cheaper relative to their history/ peers/ growth potential Blend Approach 02 Stock/Sector Selection (Top-down for Sector selection & Bottom-up for Stock selection) Biased to Large cap stocks 03 Market Cap Preferred
Slide 9: Sector-wise valuation discount based on P/E and P/B
Sector-wise valuation discount based on P/E and P/B Fund’s P/E (x) P/B (x) Sector Weight (%) Fund Benchmark Discount (%) Fund Benchmark Discount (%) Auto & Auto Components 10.88 24.99 51.20 -51% 4.86 7.93 -39% Capital Goods 2.49 42.77 47.75 -10% 8.44 11.00 -23% Chemicals 3.15 11.02 34.84 -68% 2.85 7
Slide 10: Sectoral Movement
Sectoral Movement Portfolio Weight (%) Active Weight (%) Sectors Jun-22 Dec-22 Jun-23 Jun-22 Dec-22 Jun-23 Auto & Auto Components 9.03 7.94 10.74 2.39 1.31 3.21 Capital Goods 7.07 6.81 2.45 -0.01 0.19 -4.65 Chemicals 4.15 3.07 3.09 0.00 -1.09 -0.91 Construction 4.35 4.16 3.77 3.18 2.82 2.24 Construc
Slide 11: UTI Core Equity Fund – Fund Facts
UTI Core Equity Fund – Fund Facts Type of scheme Investment Objective Large & Mid Cap Fund - An open The objective of the scheme is to generate long term capital ended equity scheme investing in both large cap and mid cap stocks appreciation by investing predominantly in equity and equity related se
Slide 12: Fund Facts (contd.)
Fund Facts (contd.) Fund Snapshot Portfolio Composition# Fund Size: Monthly Avg. AuM : ` 1,724 Crores OCF ROCE Last Day AuM : ` 1,793 Crores C1 : 83% R1 : 53% No. of Unit Folios : 1,87,399 C2 : 15% R2 : 27% C3 : 2% R3 : 21% Market Capitalisation (%) Price to Fund BM Book Large : 48 53 6.93 3.87 Mid
Slide 13: Long-term trend of portfolio composition
UTI Core Equity Fund: Long-term trend of portfolio composition OCF Tier RoCE Tier 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 C1 C2 C3 R1 R2 R3 P/E Multiple (x) P/B Multiple (x) RoE 45 14 20 40 12 1
Slide 14: Portfolio
Portfolio Equity Top 20 Holdings % to Act. Wt STOCK NAME SECTOR NAV % Unique Stocks (As compared to Benchmark) HDFC BANK LTD FINANCIAL SERVICES 4.76 0.92 ICICI BANK LTD FINANCIAL SERVICES 3.85 0.51 STOCK NAME SECTOR % to NAV INFOSYS LTD. IT 3.69 1.26 HDFC LTD. FINANCIAL SERVICES 3.42 0.79 TATA MOTOR
Slide 15: Portfolio Snapshot
Portfolio Snapshot Active Stock Position Sectoral Breakdown (%) (As compared to Benchmark) (As compared to Benchmark) Active Weight FINANCIAL SERVICES 31.08 2.50 Overweight (Top 5) AUTO & AUTO COMPONENTS 10.74 3.21 % to Act. Wt HEALTHCARE 10.41 2.99 STOCK NAME SECTOR NAV % IT 8.90 0.26 FEDERAL BANK
Slide 16: Portfolio Commentary
Portfolio Commentary The Fund has value orientation in its approach and The Fund added exposures in Financial Services in looks at the portfolio from the relative value approach the last quarter, driven by expectations of strong where it believes that good quality companies have earnings growth
Slide 17: Rolling Return Analysis
Rolling Return Analysis Rolling Returns of UTI Core Equity Fund – Since Inception 102% 36% 20% 16% Median Rolling 12% 12% 4% 12% 9% Returns (CAGR) -11% -5% -36% Lowest Highest Median 1 Year 3 Years 5 Years 10 Years Instances of 22.5% 6.0% 2.1% 0.0% -ve Returns Over 8% 51.8% 65.3% 83.8% 85.6% Rolling
Slide 18: Performance Track Record
Performance Track Record UTI Core Equity Fund Performance Vs Benchmark as of 30/06/2023 Fund Performance Vs Benchmark Growth of ` 10,000/- Period Scheme Returns B: Nifty LargeMidcap AB: Nifty 50 Scheme Returns B: Nifty LargeMidcap AB: Nifty 50 (%) 250 TRI (%) TRI (%) (`) 250 TRI (`) TRI (`) 1 Year 2
Slide 19: Performance Track Record (Contd.)
Performance Track Record (Contd.) Performance of other open-ended schemes managed by the Fund Manager Mr. V Srivatsa Managing 1 Year (%) 3 Years (%) 5 Years (%) Inception Scheme the Fund Benchmark Date Fund Benchmark Fund Benchmark Fund Benchmark Since UTI Hybrid Equity Fund CRISIL Hybrid 25+75 02-J
Slide 20: Why Invest in UTI Core Equity Fund?
Why Invest in UTI Core Equity Fund? The scheme is designed for such investors who seek exposure to a portfolio of investing in both large and mid market capitalization stocks with a preference for relative value style of investing approach. The Fund makes conscious efforts of reducing the volati
Slide 21: Product Label
Product Label Riskometer of Name of the Scheme This product is suitable for investors who are seeking* Riskometer of Fund# Benchmark S&P BSE 100 TRI UTI Mastershare Unit Scheme • Long term capital appreciation (An open ended equity scheme predominantly • Investment predominantly in equity instrument
Slide 22: Product Label
Product Label Riskometer of Name of the Scheme This product is suitable for investors who are seeking* Riskometer of Fund# Benchmark • Long term capital appreciation Nifty Infrastructure TRI UTI Infrastructure Fund • Investment predominantly in equity and equity related (An open ended equity scheme
Slide 23: Product Label
Product Label Riskometer of Name of the Scheme This product is suitable for investors who are seeking* Riskometer of Fund# Benchmark UTI Children’s Career Fund – Savings Plan CRISIL Short Term Debt • Long term capital appreciation Hybrid 60+40 Fund Index (An open ended fund for investment for childr
Slide 24: Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
The information contained in this document is for general purposes only and is not an offer to sell or a solicitation to buy/ sell any mutual fund units / securities. The information / data here in alone are not sufficient and should not be used for the development or implementation of an investment
Slide 25: Thank You
Thank You 25 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
UTI Asset Management — Investor Presentation (July 2023) on 6ix