Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Investor Presentation (July 2023)
29 slides from Uti Asset Management's investor presentation, July 2023
Slide 1: UTI Value Opportunities Fund
UTI Value Opportunities Fund (An open ended equity scheme following a value investment strategy) 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: Concept of Value Investing
Concept of Value Investing What is Value investing? Value investing is buying businesses for less than its ‘Intrinsic value’. Intrinsic value is “the discounted value of the cash that can be taken out of a business during its remaining life”. An important factor of value investing is ‘Margin of safe
Slide 4: Intrinsic Value in Practice
Intrinsic Value in Practice What we prefer What we avoid Businesses which demonstrate Businesses with poor/inconsistent high/consistent conversion of EBITDA cash flow and low ROCE into Operating Cash Flow (OCF) Businesses with limited re-investment Healthy Return on Capital Employed opportun
Slide 5: Investment Strategy
Investment Strategy Blend of top-down (sector concentration) & bottom-up (for stock picking) Sector selection – Focus on valuations Stock selection – A Barbell approach Market may under Companies that may appreciate the sustainability of be experiencing challenges competitive advantages and/ d
Slide 6: Valuation of IT Sector v/s Fund's Exposure
6 P/E (x) 15.00 20.00 25.00 30.00 35.00 40.00 10.00 0.00 5.00 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Source: Bloomberg, Data as on June 30, 2023 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Valuation of IT Sector v/s Fund’s Exposure Jun-20 Aug-20 Active Weight (%) Oct-20 Dec-20 Feb-21 Apr-21 Jun-21
Slide 7: Barbell Approach: Reflected in stock valuations
Barbell Approach: Reflected in stock valuations P/E P/B Sector (Stock Count) Low High Low High Auto & Auto Components (5) 22.08 94.68 2.59 6.53 Capital Goods (4) 28.59 73.73 5.30 9.23 Consumer Durables (4) 39.72 58.14 6.92 13.55 Consumer Services (4) 3.81 93.69 2.82 6.04 FMCG (4) 29.29 64.92 2.69 18
Slide 8: Stock Exposure at both ends of the Barbell
Stock Exposure at both ends of the Barbell Information Technology Auto Banks Tech Mahindra Ltd. LTIMindtree Ltd. Eicher Motors Ltd. Bajaj Auto Ltd. HDFC Bank Ltd. ICICI Bank Ltd. 70 70 6.0 60 60 5.0 50 50 4.0 40 40 P/B (x) P/E (x) P/E (x) 3.0 30 30 2.0 20 20 1.0 10 10 0 0 0.0 Data Source : Bloomberg
Slide 9: Sectoral Movement: Pivoted by Valuation
Sectoral Movement: Pivoted by Valuation Portfolio Weight (%) Active Weight (%) Sectors Jun-22 Dec-22 Jun-23 Jun-22 Dec-22 Jun-23 Automobile and Auto Components 8.51 8.50 8.86 1.04 2.87 2.67 Capital Goods 5.88 4.25 3.93 4.22 2.58 -0.36 Chemicals 1.46 1.07 1.16 -1.58 -1.24 -1.45 Construction 0.60 0.97
Slide 10: Flexible Allocation to Market Cap: Consideration for Valuation
Flexible Allocation to Market Cap: Consideration for Valuation 100 90 15 80 16 70 Percentage (%) 60 50 40 69 30 20 10 0 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Large Cap Mid Cap Small Cap 10 Data as of June 30, 2023
Slide 11: Portfolio Valuations: Current Discount close to average
Portfolio Valuations: Current Discount close to average P/B Discount of UTI Value Opportunities Fund over Nifty 500 Index 50% Discount vs Nifty 500 Average Discount 45% 40% 35% 30% 30% 28% 25% 20% 15% 10% Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Jun-19 Jun-18 Sep-19 Jun-20 Jun-21 Jun-22 Jun-23 Sep-18 Sep-
Slide 12: Investment Framework
Investment Framework Value Tilt 01 Investment Style Follows barbell approach – buying what market underestimates Blend Approach 02 Stock/Sector Selection Top-down for Sector selection & Bottom-up for Stock selection Agnostic to Market Cap 03 Market Cap Preferred Allocation: Biased to Large caps; fle
Slide 13: UTI Value Opportunities Fund: Fund Facts
UTI Value Opportunities Fund: Fund Facts Type of scheme Investment Objective An open ended equity scheme The primary objective of the scheme is to generate long term following a value investment strategy capital appreciation by investing predominantly in equity and equity related securities of compa
Slide 14: Fund Facts (contd.)
Fund Facts (contd.) Fund Snapshot Portfolio Composition# Fund Size: Monthly Avg. AuM : ` 7,169 Crores OCF ROCE Last Day AuM : ` 7,333 Crores C1 : 88% R1 : 53% No. of Unit Folios : 4,73,378 C2 : 10% R2 : 25% C3 : 2% R3 : 22% Market Capitalisation (%) Price to Fund BM Book 6.73 Large : 69 76 4.69 Mid
Slide 15: Long-term trend of portfolio composition
UTI Value Opportunities 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 40 11 20
Slide 16: Portfolio
Portfolio Equity Top 20 Holdings STOCK NAME SECTOR % to NAV Act. Wt % Small Cap Holdings HDFC BANK LTD FINANCIAL SERVICES 9.11 3.29 STOCK NAME SECTOR % to NAV ICICI BANK LTD FINANCIAL SERVICES 6.40 1.34 INFOSYS LTD. IT 5.96 2.27 AJANTA PHARMA LTD. HEALTHCARE 1.59 AXIS BANK LTD. FINANCIAL SERVICES 4.
Slide 17: Portfolio Snapshot
Portfolio Snapshot Active Stock Position Sectoral Breakdown (%) (As compared to Benchmark) (As compared to Benchmark) Active Weight Overweight (Top 5) FINANCIAL SERVICES 33.1 1.4 IT 11.5 1.4 % to Act. Wt HEALTHCARE 9.8 4.5 STOCK NAME SECTOR NAV % AUTO & AUTO COMPONENTS 8.9 2.7 HDFC BANK LTD FINANCIA
Slide 18: Portfolio Commentary
Portfolio Commentary Financial Services: : The Fund has active weights across few Automobile & Automobile Components: The large well-capitalized banks. The sector is going through a sector has seen cyclical uptick in volume period of exceptional tailwinds in asset quality as well as growth with CV a
Slide 19: Portfolio Commentary (contd.)
Portfolio Commentary (contd.) IT: The sector has seen significant volatility over the Cement: The sector had gone through the cycle of last 2 years both in terms of revenue growth as well volatile coal and pet coke prices over last 1 year. Lack as valuation multiples. Implied growth is now of pricin
Slide 20: Rolling Return Analysis
Rolling Return Analysis Rolling Returns of UTI Value Opportunities Fund – 15 Years 115% 37% 26% Median Rolling 18% 12% 12% 6% 13% Returns 13% (CAGR) -6% -3% Lowest Highest Median -30% 1 Year 3 Years 5 Years 10 Years Probability of -ve Returns 17.5% 1.5% 0.7% 0.0% Over 8% 61.3% 77.3% 86.1% 96.8% Roll
Slide 21: Performance Track Record
Performance Track Record UTI Value Opportunities Fund Performance Vs Benchmark as of 30/06/2023 Fund Performance Vs Benchmark Growth of ` 10,000/- Period Scheme Returns B: Nifty 500 TRI AB: Nifty 50 TRI Scheme Returns B: Nifty 500 TRI AB: Nifty 50 TRI (`) (%) (%) (%) (`) (`) 1 Year 23.52 23.90 22.91
Slide 22: Performance Track Record (contd.)
Performance Track Record (contd.) SIP Performance of UTI Value Opportunities Fund Vs Benchmark as of 30/06/2023 Fund Performance Vs Benchmark Growth of ` 10,000/- Period Investment Amount Scheme B: Nifty 500 TRI AB: Nifty 50 TRI Scheme B: Nifty 500 TRI AB: Nifty 50 TRI Returns (%) (%) (%) Returns (`
Slide 23: Why Invest in UTI Value Opportunities Fund?
Why Invest in UTI Value Opportunities Fund? The Fund looks to take aggressive sector positions, based on valuation considerations and on medium term growth prospects The fund has the flexibility to operate across the market cap spectrum following the “Value” style of investment. While the portfo
Slide 24: Product Spectrum on Risk v/s Return Grid
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 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: 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 28: Mutual Fund Investments are subject to market risks
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 29: Thank You
Thank You 29 Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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