Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — UTI Multi Asset Fund — Investor Presentation (September 2020)
27 slides from Uti Asset Management's investor presentation, September 2020
Slide 1: UTI Multi Asset Fund
This product is suitable for investors who are seeking*: UTI Multi Asset Fund - Long term capital appreciation - Investment in equity, debt and Gold ETFs with a minimum allocation of 10% in each asset class • Investors should consult their financial advisors if in doubt about whether the product is
Slide 2: Every asset class has a role & suitability in an investment portfolio
Every asset class has a role & suitability in an investment portfolio Role in one’s Potentially suitable portfolio for Equity Growth & wealth Medium to Long term creation Arbitrage Portfolio Hedge Short to medium term Stability & Income Medium to long Term Debt potential Hedge & Portfolio Medium to
Slide 3: However, no asset class can go on performing year after year
However, no asset class can go on performing year after year Year Nifty 50 TRI Debt Gold Top performer 2009 77.6% 3.50% 24.25% Equity 2010 19.2% 4.96% 23.17% Gold 2011 -23.8% 6.90% 31.81% Gold 2012 20.4% 9.38% 12.27% Equity 2013 8.10% 3.79% -4.50% Equity 2014 32.9% 14.31% -7.91% Equity 2015 -3.0% 8.
Slide 4: And hence the need for investor is …
And hence the need for investor is … To abstain from predicting the market winners To choose right mix of Asset Allocation based on investment objective
Slide 5: Asset allocation - the key driver of portfolio return
Asset allocation - the key driver of portfolio return 100.00% 91.5% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 4.60% 2% 2% 0.00% Market timing Other Stock Selection Asset Allocation Source: www.KefferFinancialPlanning.com
Slide 6: Investor needs to choose between view based or model based allocation
Investor needs to choose between view based or model based allocation View based Asset Model based Asset allocation allocation Based on individual Based on respective market view model inputs Tactical orientation Strategical orientation Discretionary Automatic rebalancing rebalancing R
Slide 7: Benefits of model based approach
Benefits of model based approach Evidenced based Responsive to market Dynamic depending Guided allocation Eliminates the need of predictive allocation direction & valuation upon market behavior without biases manual market timing
Slide 8: Presenting a dynamically managed multi asset fund
Debt Equity + Arbitrage Gold Presenting A dynamically managed multi asset fund
Slide 9: Positioning of UTI Multi Asset Fund among hybrid funds
Positioning of UTI Multi Asset Fund among hybrid funds UTI CCF Investment UTI Hybrid Equity UTI Multi Asset Fund Risk UTI ULIP CCF-Savings RBP UTI Equity Savings Fund UTI Regular Savings Fund UTI Arbitrage Fund Return
Slide 10: Fund uses In house model for dynamic equity allocation
Fund uses In house model for dynamic equity allocation Key factors analysis Dividend Yield , Price to Earnings & price to book 1 Linear regression model to predict Weekly output & calculation of model future returns equity weight 2 Portfolio weight is changed if model equity weight Finalization of p
Slide 11: Model - Actual Return vs expected returns (historical performance)
Model - Actual Return vs expected returns ( historical performance) 14,000 80% Nifty Actual Return Expected Return 12,000 60% 10,000 40% 8,000 20% 6,000 0% 4,000 -20% 2,000 0 -40% Model has been capturing direction of the market Historically model has captured the direction of market. Deviation in t
Slide 12: Net equity level vs Nifty & performance of In house model
Net equity level vs Nifty & performance of In house model Market Equity Equity Model Nifty Model movement till Period Benchmark Alpha Date Weights Weights Key remarks Portfolio level direction (From) (To) next rebalancing 28-Jan-18 11,070 Decrease 42.5 40 -7 CY 12 22.8% 18.8% 3.97% 10-Jul-18 10,316
Slide 13: Fund's Net equity level vs Nifty
Fund’s Net equity level vs Nifty (data point highlights only the changes done against in net equity allocation against the Nifty) Nifty(absolute) Equity weight (%) 12,500 77.41 80 12,056 75 12,000 11,819 72.5 75 70 11,427 11,202 70 11,500 10,997 11,214 10,989 10,901 65 11,000 60 60 10,500 10,142 60
Slide 14: Fund's broad investment framework
Fund’s broad investment framework No of stocks Investment Style Blend strategy with growth tilt ( Targeted) 35 - 45 At least 75% - 80% in Large cap, balance in Mid Weighted avg Capitalization cap & nil exposure in Small cap M Cap Around 2.50 lac crs Net equity Debt range range 40% - 80% 10% -25% Arb
Slide 15: Investment strategy
Investment strategy Equity Top Down & Bottom Up approach for managing its stock & sector exposures. Stock Selection will be fundamental driven. Arbitrage positions by shorting Index futures / existing stocks and through new opportunities Debt Focus on accrual strategy . Investment in shorter to medi
Slide 16: Portfolio commentary & Internal guidelines
Portfolio commentary & Internal guidelines Fund Commentary by FM • As Nifty increased to 11,214 as on Aug 8, 2020 our in-house quant Sector Weights* model indicated net equity weight to be reduced to 50%. Hence 35% or Benchmark plus 12% rebalancing was carried out to reduce net equity weight to 50%
Slide 17: UTI Multi Asset Fund - Snapshot
UTI Multi Asset Fund - Snapshot Type of scheme Investment Objective An open ended scheme investing in Achieve long term capital appreciation by investing predominantly in a equity, debt and Gold ETFs. diversified portfolio of equity and equity related instruments. The fund also invests in debt and m
Slide 18: Fund Facts
Fund Facts Fund Snapshot Fund Size: Portfolio Composition# Monthly Avg. AUM : Rs.672.74 Crores OCF ROCE Last Day AUM : Rs.677.90 Crores C1 : 87% R1 : 57% No. of Unit Folios : 56,147 C2 : 10% R2 : 35% C3 : 3% R3 : 8% Price to Market Capitalization (%) Book 6.78 Fund BM 6.36 Price to Large : 90 89 Ear
Slide 19: Portfolio - Equity & Debt
Portfolio - Equity & Debt Equity Top 20 Holdings % to NAV Act Unique stock compared to benchmark Sector % to NAV Stock Sector (Gross rebased Weight to 100%) Sundram Fasteners Ltd. Automobile 1.01 Reliance Industries Ltd. Oil & Gas 8.74 -1.88 Hdfc Bank Limited Financial Services 8.57 0.95 Escorts Ltd
Slide 20: Asset wise break up (last year)
Asset wise break up (last 1 year) Net long Equity (%) Arbitrage (%) Debt & Others (%) Gold (Gold ETF) (%) 120 100 10 10 10 11 11 11 11 10 10 10 11 10 21 20 20 21 21 23 12 11 13 14 23 21 80 79 77 77 76 14 14 21 17 27 26 24 6 60 60 55 56 52 49 40 41 42 42 20 0 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20
Slide 21: Performance of UTI Multi Asset Fund
Performance of UTI Multi Asset Fund Fund Performance Vs Benchmark (as of 31/08/2020) Fund Performance Vs Benchmark Growth of Rs. 10,000/- Period NAV NAV Benchmark(%) Nifty 50 Index (%) Benchmark(Rs.) Nifty 50 Index (Rs.) (%) (Rs.) 1 Year 8.09 10.38 4.34 10,809 11,038 10,434 3 Years 3.81 7.65 6.01 11
Slide 22: Dividend Distribution
Dividend Distribution UTI Multi Asset Fund - Regular Plan- Dividend option Individual Record Date Monthly Gross Dividend Record Date Gross Dividend Per Unit - Net of tax per unit NAV Yield(%) 25-Aug-20 0.0850 $ 17.7944 0.48% 22-July-20 0.0850 $ 17.3329 0.49% 22-June-20 0.0850 $ 16.4785 0.52% 23-Mar-
Slide 23: Why invest in this fund & what not to expect from this fund
Why invest in this fund & what not to expect from this fund -Single route access to a diversified portfolio -This fund cant produce an aggressive returns like a spreading across equity , debt & gold regular diversified equity fund. -This may tend to underperform during sudden -Dynamic Equity allocat
Slide 24: About Our Equity Investment Team
About Our Equity Investment Team Swati Kulkarni, CFA Ajay Tyagi, CFA V Srivatsa Sanjay Dongre Rajeev Kumar Ankit Agarwal Fund Manager Fund Manager Fund Manager Fund Manager Gupta Fund Manager Fund Manager Vetri Subramaniam Head Equity & Fund Manager Collective Work Experience of Investment Team Over
Slide 25: Our Fixed Income Team
Our Fixed Income Team Mutual Funds Sudhir Agarwal Ritesh Nambiar Sunil Patil Amit Sharma Fund Manager Fund Manager Fund Manager Fund Manager MBA & CFA MBA, CFA & FRM MFM & M.Com CA,FRM Total Exp: 15 yrs Total Exp: 15 yrs. Total Exp: 31 yrs. Total Exp: 12 yrs. Amandeep Chopra With UTI MF: 11 yrs With
Slide 26: About our Investment Manager Sanjay Ramdas Dongre
About our Investment Manager Portfolio Manager Sanjay Ramdas Dongre With UTI: 25 Years Mr. Sanjay is an Executive Vice President & Senior Fund Manager –Equity at UTI AMC Ltd. He is a B.E and has a PGDM from IIM, Kolkata. He has been with UTI AMC since 1994. He started as a Debt Analyst acting as a s
Slide 27: Thank You
Thank You STATUTORY: 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 implementa
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