Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Investor Presentation (July 2023)
28 slides from Uti Asset Management's investor presentation, July 2023
Slide 1: UTI Mastershare Unit Scheme
UTI Mastershare Unit Scheme (An open ended equity scheme predominantly investing in large cap stocks) SCHEME Large Cap Multi Cap Value Large & Mid Mid Cap CATEGORY Fund Fund Fund Cap Fund Fund STOCK Low Moderate High Concentration Concentration Concentration CONCENTRATION (> 55 stocks) (45 - 55 stoc
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: UTI Mastershare Unit Scheme: Advantage Large Cap
UTI Mastershare Unit Scheme: Advantage Large Cap Leadership Financial Strength Such companies Large cap companies enjoy market have strong Balance dominance 01 02 Sheets and thus have by extending the appetite to quality offerings in support their brands their industries Resilient Business Model Smo
Slide 5: Market Leaders: Big getting bigger
Market Leaders: Big getting bigger Market Share of Top Players (%) Banks Cement (Top 6: Bank Credit) (Top 5: Sales Volume) FY10 47.30% FY10 35.40% FY20 55.80% FY20 53.00% FY23 61.80% FY23 58.00% Passenger Vehicles Domestic Pharma (Top 4: Sales Volume) (Top 20: Revenue) FY10 83.40% FY10 61.10% FY20 8
Slide 6: Investment Strategy
Investment Strategy Growth at Competitive Reasonable Franchise Price (GARP) Given the underlying growth in earnings of Companies with competitive franchise a company, how much is the reasonable have benefits of pricing power or cost price that one should pay to buy that competitiveness for long
Slide 7: Examples of Competitive Franchise (1)
Examples of Competitive Franchise (1) Financials – Premium Valuations v/s Retail Bank (1998 – 2021) Min Max Current Sustainable Growth Current & Savings Deposits 38.8% 60.6% 46.1% Liability Franchise NIM 3.0% 4.5% 4.1% ― Low-cost deposits Op Cost / Income 36.3% 51.7% 36.3% ― Better NIM ROA 1.4% 1.
Slide 8: Examples of Competitive Franchise (2)
Examples of Competitive Franchise (2) Financials – Improving Trajectory and Attractive Valuation Opportunity spotted in 2018 when Relative Position in 2018 Asset quality issues and rising credit costs for the sector Key Parameters % Remarks Issues with management (realignment of Current & Saving
Slide 9: Examples of Competitive Franchise (3)
Examples of Competitive Franchise (3) Profitability, working capital, cash flows and Passenger Vehicles Manufacturer capital expenditure (FY21) Company No. 2 player PATM (%) 6 5 Larger distribution and after market reach Working Capital /Sales (%) -8.3 -2.6 Superior profitability and cash flow g
Slide 10: Competitive Franchise in B2B Sectors
Competitive Franchise in B2B Sectors Client Revenue Contribution FY ‘22 IT Company 1 Others Information Technology Top 10 19% 36% - 59% Large client base Profitability Operating Efficiency FY ‘22 IT Company 1 IT Company 2 Others EBIT Margins 25% 23% 13% - 18% Source: Companies filings Pharma Imp
Slide 11: Opportunities from Industry Consolidation
Opportunities from Industry Consolidation Paints Paints Company Mar-02 Mar-20 Expansion Pricing Power & Improving profitability Despite Raw Material (crude based) moving Gross Margin (%) 48.5 51.9 3.4 up from $26/bbl in ‘02 to $54/bbl in ‘20 EBIT Margin (%) 11.8 16.7 4.9 Market share > 50% Tel
Slide 12: Avoiding the "wrong" stocks is as important as selecting the "right" ones
Avoiding the “wrong” stocks is as important as selecting the “right” ones Analysis of observations when S&P BSE 100 corrected >20% Fund’s NAV fell less than the fall in S&P BSE 100 generating Alpha on all these occasions For the smart investor who stayed through the turbulent period, the gains o
Slide 13: Investment Framework
Investment Framework Growth at a Reasonable Price (GARP) 01 Investment Style (blend of both growth and value) Blend Approach 02 Stock/Sector Selection (Top-down for Sector selection & Bottom-up for Stock selection) Large Cap Dominance 03 Market Cap Min. of 80% of the fund corpus invested in large ca
Slide 14: UTI Mastershare Unit Scheme: Fund Facts
UTI Mastershare Unit Scheme: Fund Facts Type of scheme Investment Objective Large Cap Fund - An open ended The objective of the scheme is to generate long term capital equity scheme predominantly investing in large cap stocks appreciation by investing predominantly in equity and equity related secur
Slide 15: Fund Facts (contd.)
Fund Facts (contd.) Fund Snapshot Portfolio Composition# Fund Size: OCF ROCE Monthly Avg. AuM : ` 11,034 Crores C1 : 91% R1 : 56% Last Day AuM : ` 11,306 Crores C2 : 6% R2 : 29% No. of Unit Folios : 7,56,211 C3 : 4% R3 : 16% Market Capitalisation (%) Price to Book Fund BM 6.396.58 Large : 91 95 Pric
Slide 16: Long-term trend of portfolio composition
UTI Mastershare Unit Scheme: 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 10 20
Slide 17: Portfolio
Portfolio Equity Top 20 Holdings STOCK NAME SECTOR % To NAV Act. Wt % Unique Stocks (As compared to Benchmark) ICICI BANK LTD FINANCIAL SERVICES 9.18 2.64 HDFC LTD. FINANCIAL SERVICES 7.58 2.40 STOCK NAME SECTOR % to NAV INFOSYS LTD. IT 7.43 2.60 BHARTI AIRTEL LTD. TELECOMMUNICATION 4.46 2.30 SKF IN
Slide 18: Portfolio Snippets
Portfolio Snippets Sectoral Breakdown (%) Active Stock Position (As compared to Benchmark) (As compared to Benchmark) Active Weight FINANCIAL SERVICES 35.2 -0.1 Overweight (Top 5) IT 15.1 2.1 % to Act. Wt STOCK NAME SECTOR AUTO & AUTO COMPONENTS 9.6 4.8 NAV % CONSUMER DURABLES 5.5 2.1 ICICI BANK LTD
Slide 19: Portfolio Commentary
Portfolio Commentary Financial Services: The Fund continues to prefer Consumer Durables/Services: The Fund has an banks with healthy liability franchise i.e., low-cost overweight stance given the potential for CASA balances which help in better spreads and long growth runway from low penetration, gr
Slide 20: A Journey of Wealth Creation (36+ Years)
A Journey of Wealth Creation (36+ Years) Growth of ` 10 Lakhs invested at Scheme Inception# UTI Mastershare Unit Scheme ` 10 lakhs invested at inception now worth ` 19.83 Crore, > `6.46 Crore vs the benchmark S&P BSE 100 of ` 13.37 Crore Each correction may have been painful for the short-term i
Slide 21: Rolling Return Analysis
Rolling Return Analysis Rolling Returns of UTI Mastershare Unit Scheme: 15 Years Lowest Highest Median 90% 28% 20% 17% Median Rolling 11% 12% 13% 6% 13% Returns (CAGR) -5% -1% -28% 1 Year 3 Years 5 Years 10 Years Instances of -ve Returns 19.9% 2.0% 0.2% 0.0% Over 8% 58.2% 75.0% 88.9% 95.9% Rolling R
Slide 22: Performance Track Record
Performance Track Record UTI Mastershare Unit Scheme Performance Vs Benchmark as of 30/06/2023 Fund Performance Vs Benchmark Growth of ` 10,000/- Period Scheme B: S&P BSE 100 TRI AB: S&P BSE Scheme B: S&P BSE 100 TRI AB: S&P BSE Sensex Returns (%) (%) Sensex TRI (%) Returns (`) (`) TRI (`) 1 Year 19
Slide 23: Income Distribution /Bonus/ Rights History
Income Distribution /Bonus/ Rights History Year Inc. Dist. (%) Cum-Div NAV (`) Record Date Per Unit Year Inc. Dist. (%) Cum-Div NAV (`) Record Date Per Unit 1987 8.00 11.05 29-Jun-87 0.80 1999 16.00 22.62 25-Aug-99 1.60 1988 13.00 14.70 30-Jun-88 1.30 2000 16.00 17.14 17-May-00 1.60 1989 18.00 29.45
Slide 24: Why Invest in UTI Mastershare Unit Scheme?
Why Invest in UTI Mastershare Unit Scheme? India’s first equity-oriented fund launched in October 1986 The Fund invests in large capitalisation companies with competitive advantages by following Growth at Reasonable Price (GARP) investment style The Fund takes a top-down view for sector active
Slide 25: 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 26: 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 27: 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 28: Thank You
Thank You 28 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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