Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q3 FY2021-22 Earnings Presentation
56 slides from Uti Asset Management's earnings presentation, Jan 28, 2022
Slide 1: Investor Presentation UTI Q3 FY21-22
Investor Presentation UTI Q3 FY21-22 Conviction Capabilities Commitment Private and Confidential | Mumbai, India | December 2021 Information Classification: UTI AMC - Public
Slide 2: 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, Unit Linked Insurance Plan, Children’s Plan 13.11 Lakh Crore INR in AUM* • Focused Solely on Investment Management and related se
Slide 3: UTI AMC - Our Vision and Mission
UTI AMC - Our Vision and Mission VISION To be the most preferred Asset Manager MISSION Most trusted brand, admired by all stakeholders The largest Money Manager with global presence The best-in-class customer service provider The most preferred employer The most innovative wealth creator A socially
Slide 4: 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 Long Term relationsh
Slide 5: 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 6: Healthy Mix of Shareholders
Healthy Mix of Shareholders 1.11% 2.46% 5.45% Mutual Funds 22.98% 14.75% 8.08% 15.23% Retail Shareholders 9.98% Foreign portfolio Investors Others 9.98% Alternate Investment Funds 9.98% UTI AMC is a professionally managed T. Rowe Price International Ltd. – a global company with no identifiable promo
Slide 7: Key Performance Indicators
Key Performance Indicators Assets Under Total AUM* MF QAAUM Other AUM^ Management INR 13,11,414 Crore INR 2,24,671 Crore INR 10,86,743 Crore Market NPS AUM MF AUM Equity + Hybrid AUM Share 27.65% 5.88% 5.29% Core Revenue Core EBITDA Core PAT Profitability Growth# 153% Q3 FY22 vs Q3 FY21 Growth# 33%
Slide 8: UTI Group
07 UTI Group 07 Information Classification: UTI AMC - Public
Slide 9: 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 10: UTI Group Assets Under Management have increased by 19% YoY
UTI Group Assets Under Management have increased by 19% YoY December 2020 September 2021 December 2021 1,566 (0.14%) 1,136 (0.08%) 1,056 (0.08%) 1,86,716 (15%) 1,93,331 (15%) 1,65,359 (15%) 2,08,971 (16%) 1,58,771 (15%) 2,24,671 (17%) 21,720 (02%) 34,536 (03%) 34,609 (03%) Total INR Total INR Total
Slide 11: Outpacing the YoY industry growth
Outpacing the YoY industry growth ~36% YoY growth in QAAUM, industry grew at 28.6% Total QAAUM INR Crore YoY 35.9% 2,24,671 2,08,971 1,65,359 Dec 20 Sep 21 Dec 21 Market Share - Quarterly Average AUM 5.56% 5.77% 5.88% Dec 20 Sep 21 Dec 21 Source: AMFI, Internal. 10 Information Classification: UTI AM
Slide 12: Keystones in Growth – 60% YoY growth in Equity QAAUM
Keystones in Growth – 60% YoY growth in Equity QAAUM Equity QAAUM INR Crore Hybrid QAAUM INR Crore YoY 27.3% YoY 60.5% 26,033 27,064 70,085 63,177 21,263 43,677 Dec 20 Sep 21 Dec 21 Dec 20 Sep 21 Dec 21 Market Share – Equity QAAUM Market Share – Hybrid QAAUM 5.19% 5.61% 5.28% 5.05% 5.29% 6.39% Dec 2
Slide 13: Income and Liquid QAAUM finding foothold
Income and Liquid QAAUM finding foothold Income QAAUM INR Crore Liquid QAAUM INR Crore YoY 7.2% YoY -5.7% 21,258 47,288 47,129 20,053 43,962 19,427 Dec 20 Sep 21 Dec 21 Dec 20 Sep 21 Dec 21 Market Share – Income QAAUM Market Share – Liquid QAAUM 2.32% 2.26% 2.42% 7.40% 6.94% 6.73% Dec 20 Sep 21 Dec
Slide 14: Passive Funds Gaining Traction
Passive Funds Gaining Traction Index & ETFs QAAUM INR Crore YoY 71.4% 60.340 50,346 35,199 Dec 20 Sep 21 Dec 21 Market Share – Index & ETFs QAAUM 13.33% 13.35% 13.29% Dec 20 Sep 21 Dec 21 Source: AMFI, Internal. 13 Information Classification: UTI AMC - Public
Slide 15: Trend in Net Sales
Trend in Net Sales 9M Net Sales for Equity and ETF & Index capture 7.2% &10.8% of industry Yearly Net Sales INR Crore 12,565 8,985 6,804 Equity & 5,308 Income Hybrid Total 1,203 FY 2019-2020 (752) (1,181) FY 2020-2021 (1,418) ETFs & Index Liquid (7,750) (14,137) INR Crore Quarterly Net Sales 12,134
Slide 16: Key Business Focus Areas
Key Business Focus Areas Focus on SIP Geographical Strong growth Spread Across Financial the Country Results and Balance Sheet Growth of Prudent International, Investment Leveraging Retirement Management Digital and Alternate Process Adoption Business 15 Information Classification: UTI AMC - Public
Slide 17: 1. a) Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress testing • Internal & External Audit team, Regular Compliance • Product development Check, Dedicated Risk Management Team process • Risk control self assessment Advisory • Review Mechanism • Equity Research • Debt & Mac
Slide 18: 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 19: 1. c) Embedding ESG considerations into our Investment Decisions
1. c) Embedding ESG considerations into our Investment Decisions • At UTI AMC, we believe in promoting good Environment, Social & Governance (ESG) standards in the companies we invest in and consider this as an essential part of our ownership responsibilities. • We have adopted a formal stewardship
Slide 20: 2. SIP to remain the cornerstone for AUM performance
2. SIP to remain the cornerstone for AUM performance Long Tenure SIP Book(1) Monthly Gross SIP Inflow (INR Crore) 500 456 466 450 421 431 397 400 378 339 334 348 350 327 More than 291 290 10 Years 82% 300 264 250 200 150 100 More than 50 5 Years 91% - Our SIP AUM increased by INR 4,956 Crore, or 37.
Slide 21: 3. a) Enabling Business Digitally
3. a) Enabling Business Digitally Assisted Journeys integrated 24x7 Digital Channels Building Community • Customer service for Product & Investment enquiry- Inbound, Outbound & Email support • Active engagement on multiple touch points across • Access at your convenience anytime anywhere Social Medi
Slide 22: 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 Remarketing Search via Google, SEO Social Facebook, Media Email/SMS/ YouTube Invest Now Invest Via Online Portal 1 Platforms WhatsApp notification Internet Retargeting Promote Request
Slide 23: 3. c) Acceptance of digitization reflected in growing online transactions
3. c) Acceptance of digitization reflected in growing online transactions Quarterly Online Gross Sales as % of Total Gross Sales 100.00% Number of purchase transactions through Digital 98.00% grew by 154.5% in Q3FY22 as compared to Q3FY21. 95.73% 96.00% 95.27% 94.91% 94.37% 94.00% 92.79% Number of d
Slide 24: 3. d) Steps to increase digital presence are paying off
3. d) Steps to increase digital presence are paying off Number of Digital Purchase Transaction (in Lakhs) 45 41.4 40 35 For Customers 30 26 25 25.62 • Seamless accessibility through app 20.1 20 • Complete digitally-enabled KYC 14.9 15 process 10 5 0 For Distributors FY 18 FY 19 FY 20 FY 21 Q3 FY 22
Slide 25: 4. a) Geographical Reach Across the Country
4. a) Geographical Reach Across the Country J&K 1 167 UFCs Himachal Pradesh Chandigarh 1 1 Uttarakhand 3 Haryana 5 Delhi 5 1,393 UTI AMC Rajasthan Uttar Pradesh Assam Employees* 10 15 4 Bihar 5 Meghalaya 1 Gujarat Madhya Pradesh Tripura 15 5 Chhattisgarh 1 992 Sales Team 3 West Bengal Odisha 13 6 Ma
Slide 26: 4. b) Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability 9% 9% 9% Total 28% 29% 29% Dec’ 21 Mar’ 21 Dec’ 20 QAAUM 63% 62% 62% Direct MFD Bank & Distributors 11% 9% 10% 32% 30% 34% Equity + Hybrid Dec’ 21 Mar’ 21 Dec’ 20 QAAUM 55% 59% 60% Source: RTA Data 25 Information Classification: UTI AMC - Pub
Slide 27: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM Dec’ 21 B30 B30 17% 24% UTI Mutual Industry Fund T30 T30 76% 83% Improved awareness about investing in financial Our broad client base also provides us with a products vis a vis traditional investment number of opportunities, including cross-se
Slide 28: 5. a) UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets under management increased by 59% from INR 21,720 Crore as of 31st December 2020 to INR 34,608 Crore as of 31st December 2021 Three Office Locations – Singapore, Dubai and London with a total of 26 staff of which 13 are women Clients s
Slide 29: 5. b) UTI Retirement Solutions Ltd. – Reaching New Heights
5. b) UTI Retirement Solutions Ltd. – Reaching New Heights % 100% subsidiary PFRDA licensed for managing Pension funds Managing Government and non-Government NPS corpus UTI RSL manages 27.65% of Industry AUM as on 31st December 2021 UTI Retirement Solutions has shown AUM growth of 22% from INR 1,58,
Slide 30: 5. c) UTI Capital – Expanding the Business Portfolio
5. c) UTI Capital – Expanding the Business Portfolio % 100% subsidiary of UTI AMC Ltd. mandated to manage and grow the private capital investment business Currently manages 2 active private debt funds (UTI Structured Debt Opportunities Fund I and UTI Structured Debt Opportunities Fund II) with an AU
Slide 31: 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 32: 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 33: Modernizing our technology over multiple years
Modernizing our technology over multiple years 2016-2020 2021-2023 • 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 deploym
Slide 34: Investing to be Future Ready
Investing to be Future Ready 2016-2020 2021-2023 • Using dynamic third-party software for investment management process • Fund Accounting and Trade Management Wide range of information both domestic and international Research • Core Data Distribution • domain • Migrated Research Fund to better track
Slide 35: Financial Snapshot
Financial Snapshot 34 Information Classification: UTI AMC - Public
Slide 36: Consolidated Statement of Profit & Loss - Nine Monthly Earnings
Consolidated Statement of Profit & Loss - Nine Monthly Earnings INR Crore Particulars 9M FY 22 9M FY 21 %(+/-) Total Revenue from Operations 1033 879 18% Other Income* 5 4 25% Total Income 1038 883 18% Fee & Commission expenses 2 2 -- Employee benefit expense 292 305 (4%) Depreciation & Amortization
Slide 37: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings INR Crore Particulars Q3 FY 22 Q3 FY 21 %(+/-) Total Revenue from Operations 309 342 (10%) Other Income* 0 1 (100%) Total Income 309 343 (10%) Fee & Commission expenses 1 1 -- Employee benefit expense 97 116 (16%) Depreciation & Amortizati
Slide 38: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR Crore Particulars Q3 FY 22 Q2 FY 22 %(+/-) Total Revenue from Operations 309 380 (19%) Other Income* 0 3 (100%) Total Income 309 383 (19%) Fee & Commission expenses 1 1 -- Employee benefit expense 97 100 (3%) Depreciation & Amorti
Slide 39: Standalone Statement of Profit & Loss - Nine Monthly Earnings
Standalone Statement of Profit & Loss - Nine Monthly Earnings INR Crore Particulars 9M FY 22 9M FY 21 %(+/-) Total Revenue from Operations 797 696 15% Other Income* 1 2 (50%) Total Income 798 698 14% Fee & Commission expenses 6 4 50% Employee benefit expense 261 279 (6%) Depreciation & Amortization
Slide 40: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR Crore Particulars Q3 FY 22 Q3 FY 21 %(+/-) Total Revenue from Operations 249 260 (4%) Other Income* 0 1 (100%) Total Income 249 261 (5%) Fee & Commission expenses 2 1 100% Employee benefit expense 86 108 (20%) Depreciation & Amortization
Slide 41: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR Crore Particulars Q3 FY 22 Q2 FY 22 %(+/-) Total Revenue from Operations 249 273 (9%) Other Income* 0 0 -- Total Income 249 273 (9%) Fee & Commission expenses 2 2 -- Employee benefit expense 86 90 (4%) Depreciation & Amortization ex
Slide 42: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR Crore Particulars Q3 FY 22 Q3 FY 21 %(+/-) 9M FY 22 9M FY 21 %(+/-) MF Fees 216 183 18% 642 493 30% PMS Fees 7 5 40% 20 14 43% SUUTI Support Service Fees 3 3 -- 8 8 -- POP Fees & others 0 0 -- 1 1 -- Sale of Services - UTI AMC Standalone 226 191 18% 671 5
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet INR Crore Particulars Dec ’21 Mar ‘21 %(+/-) Assets: Financial Assets 3,454 3,216 7% Non Financial Assets 428 434 (1%) Total Assets 3,882 3,650 6% Liabilities & Equity: Financial Liabilities 247 265 (7%) Non-financial Liabilities 84 122 (31%) Equity 3,551 3,263 9% Total Li
Slide 44: Standalone Balance Sheet
Standalone Balance Sheet INR Crore Particulars Dec ’21 Mar ‘21 %(+/-) Assets: Financial Assets 2,915 2,820 3% Non Financial Assets 419 422 (1%) Total Assets 3,334 3,242 3% Liabilities & Equity: Financial Liabilities 226 246 (8%) Non-financial Liabilities 50 89 (44%) Equity 3,058 2,907 5% Total Liabi
Slide 45: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) 13 13 YE FY 19 45 45 YE FY 20 32 32 Operating Revenue Operating Expenses PAT Margin 12 16 44 41 YE FY 21 9M FY 22 32 25 44 Information Classification: UTI AMC - Public
Slide 46: UTI International – Consolidated Statement of Profit & Loss
UTI International – Consolidated Statement of Profit & Loss For the Period Ended December 2021 For the Period Ended December 2020 Particulars (GBP in ‘000) INR Crore (GBP in ‘000) INR Crore AUM 34,50,484 34,609 21,80,780 21,720 Sale of Service 8,917 91 4,495 43 M2M gain from Investment 7,687 78 13,2
Slide 47: 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 9M FY 22 9M FY 21 9M FY 22 9M FY 21 9M FY 22 9M FY 21 AUM 1,93,331 1,58,771 1,055 1,566 -- -- Sale of Services 68.0 10.8 4.2 5.6 -- -- M2M Gain on I
Slide 48: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.5 24% 46% 0.45 42% 21% 19% 0.4 18% 15% 16% 0.35 34% 15% 31% 31% 14% 0.3 12% 10% 9% 0.25 FY18 FY19 FY20 FY21 9M FY 21-22* FY18 FY19 FY20 FY21 9MFY21-22* #9M FY21-22 has been annualized #9M FY21-22 has been annualized 47 Information Classificat
Slide 49: Annexures
Annexures 48 Information Classification: UTI AMC - Public
Slide 50: Investor Services Key Indicators – Q3 FY 21-22
Investor Services Key Indicators – Q3 FY 21-22 1.66 Lakh 0.67 Lakh 5.10 Seconds Total Call Volume Outbound Total Call Volume Inbound Average Speed of Answer Contact Center 23 Low Complaints Ratio 1.16 Crore Total Complaints Received Folios against folios at 0.0001% Investor Services 37% INR 4.96 Crs
Slide 51: Breakup of Consolidated investments
Breakup of Consolidated investments Breakdown of Total Investment As on Dec 31, 2021 INR crore Investment in UTI MF Schemes 2,324 Equity 465 7.1% Arbitrage 1,188 13.8% Liquid & Debt 671 Total Investments: Offshore Funds 408 INR 2,941 crore Equity 368 Debt / Hybrid 40 79.1% Venture Funds, Other Equit
Slide 52: 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% 80% Women Director Domestic Overseas 51 Information Classification: UTI AMC - Publ
Slide 53: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman and 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 hold a
Slide 54: 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 55: 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 56: 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: investor.relations@uti.co.in Mutual Fund investments are subject to mark
UTI Asset Management Company — Q3 FY2021-22 Earnings Presentation on 6ix