Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q2 FY24 Earnings Presentation
58 slides from Uti Asset Management's earnings presentation, Oct 18, 2023
Slide 1: Exchange filing cover letter for investor presentation
UTI Asset Management Company Limited UTI Mutual Fund Ref. No.: UTI/AMC/CS/SE/2023-24/0364 Date: 18th October, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza Plot No. C/1 Phiroze Jeejeebhoy Towers G Block Bandra – Kurla Complex Dalal Street Bandra (East) Mumbai – 400 051. Mu
Slide 2: Investor Presentation UTI AMC Q2 FY 23-24
R uti UTI Mutual Fund UTI Asset Management Company Limited Investor Presentation UTI AMC Q2 FY 23-24
Slide 3: UTI AMC - A Customer centric Global Asset Management Firm
UTI AMC - A Customer centric Global Asset Management Firm UTI Mutual Fund Pioneer in India • Oldest Mutual Fund in Indio & a trusted household brand • First to launch Equity Mutual Fund, Children's Pion INR 16.89 lakh crore in AUM* • Focused Solely on Investment Management and related services • Pre
Slide 4: UTI AMC - Our Vision and Mission
UTI AMC - Our Vision and Mission □ uti UTI Mutual Fund VISION ~ i To be the most preferred Asset Manager ,, ~ ' ~ , MISSION te~ The most trusted brand, admired by all stakeholders ~~ ~,,: Asset Manager with a diverse suite o f products & global presence • ••• Enable our customers to achieve their fi
Slide 5: Focus is the Essence of our Business
Focus is the Essence of our Business uti UTI Mutual Fund Investment Investors Co-operation and Trust and Thinking Long- Excellence First Collaboration Mutual Respect Term Focus of our existence Investor success leads to our Bringing out the best ideas Building meaningful relationships Shaping sustai
Slide 6: Our Continuous Endeavour is to
Our Continuous Endeavour is to □ uti UTI Mutual Fund 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 driven strengthen existing
Slide 7: Healthy Mix of Shareholders
Healthy Mix of Shareholders UTI Mutual Fund UTI AMC is a professionally managed com pany with no identifiable promoters State Bank of India, Bank of Baroda and Life Insu rance Corporation of India hold 9.97% sha re capital each T. Rowe Price International Ltd. - a global investment management firm i
Slide 8: Our Key Performance Indicators
Our Key Performance Indicators UTI Mutual Fund a Assets Under fl Market Profitability Flows & Management Share Hl FY 24 vs Hl FY 23 Folios Total AUM* NPSAUM Revenue growth 24% Gross Sales@ INR 16,89,318 Crore Core Revenue growth# (1 %) INR 2,22,308 Crore 26.40% MFQMUM MFAUM EBITDA growth 37% SIP Gro
Slide 9: UTI Group
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Slide 10: UTI AMC Structure
UTI AMC Structure UTI Mutual Fund Investment Manager to Support Services to Investment Manager to PMS (includes EPFO, 100% Subsidiaries UTI Mutual Fund SUUTI Offshore Funds CMPFO, ESIC and PLI Funds UTI International Ltd. UTI Alternatives Pvt. Ltd. Manager for Private Equity & Debt Funds UTI Retirem
Slide 11: Group AUM for UTI AMC increased by 16.89% YoY
Group AUM for UTI AMC increased by --16.89% YoY UTI Mutual Fund September 2022 June 2023 September 2023 INR crore Total INR Total INR Total INR 14,45, 172 crore 1 6, 13, 153 crore 16,89,318 crore 21,772, 24,207 25,105 / "·"' 1.35% 1.43% 2,66,813 1.74% 2,48,088, 2,33,595 / 16.16% 2,57,903, / 15.38% 2
Slide 12: UTI MF - witnessed AUM growth in the quarter
UTI MF - witnessed AUM growth in the quarter UTI Mutual Fund Domestic MF Closing AUM as on 30th September 2023 I Equity INR 78,830 crore I ETFs & Index IN R 99,844 crore Cash & Arbitrage INR 29,037 crore I Hybrid INR 24,368 crore 1 1ncome INR 26,390 crore Q MF Closing AUM INR 2,58,469 crore Domestic
Slide 13: Growth Trajectory - 14.22% YoY QAAUM growth for UTI MF
Growth Trajectory- 14.22% YoY QAAUM growth for UTI MF UTI Mutual Fund Total MF QMUM Market Share - Total MF QAAUM INR crore Sep 22 5.98% Mar23 Sep 23 5.68% Sep 22 Mar23 Sep 23 Source: AMF/, Inferno/. - 12
Slide 14: Keystones in Growth - 9.17% YoY growth in Equity QAAUM
Keystones in Growth - 9.17% YoY growth in Equity QMUM UTI Mutual Fund Market Share - Equity QMUM Market Share - Hybrid QMUM EquityQMUM Sep22 INR crore Sep 22 •Mar23 Sep23 Mar23 Mar23 HybridQMUM INR crore Sep 23 Sep23 - Sep 22 Mar23 Sep23 13 Source: AMF/, Internal.
Slide 15: Income QAAUM witnessing growth
Income QAAUM witnessing growth UTI Mutual Fund Market Share - Income QMUM Market Share - Cash & Arbitrage QMUM lncomeQMUM Sep22 INR crore . • Sep 22 ■Mar23 Sep23 Mar23 Mar23 Cash & Arbitrage QMUM INR crore Sep 23 Sep23 Sep 22 Mar23 Sep23 Source: AMF/, Internal. 1111114
Slide 16: Passive Funds Gaining Traction - 35.82% YoY growth
Passive Funds Gaining Traction - clocking 35.82% YoY growth UTI Mutual Fund Index & ETFs QAAUM Market Share- Index & ETFs QMUM Sep 22 INR crore Mar23 12.39% Sep 22 Mor23 Sep 23 Sep23 12.62% Source: AMF/, Inferno/ - 15
Slide 17: Trend in Net Sales
Trend in Net Sales Quarterly Net Sales for ETF & Index witness steady growth UTI Mutual Fund 10,152 INR crore Quarterly Net Sales 6,614 5,368 5,362 3,496 2,364 2,576 2,774 ■ Q2 FY23 1,885 Q1 FY24 - 768 857 ■ ■ Q2 FY24 -138 -286 -1,193 -2,135 -1,960 -3,746 -6,718 Equi1y Hybrid ETFs & Index Cash & Arb
Slide 18: Key Business Focus Areas
Key Business Focus Areas uti UTI Mutual Fund Growth of Consistent Geographical Development International, Spread Across of Human Retirement & the Country Capital Alternate Business Attracting Prudent Right Leveraging Investment Opportunities Digital Management through Adoption Process Partnerships -
Slide 19: 1. a) Prudent Investment Management Policies
1. a) Prudent Investment Management Policies UTI Mutual Fund ~ Risk ~ , Identification Control • Stress testing • Product development process • Risk control self GI •• Regular Compliance Check •• Dedicated Risk Management Team •• Internal & External Audit Team assessment Advisory • Review Mechanism
Slide 20: 1. b) Investment Management Process
1. b) Investment Management Process UTI Mutual Fund 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
Slide 21: 1. c) Embedding ESG in our Investment Decisions
1. c) Embedding ESG in our Investment Decisions □ uti UTI Mutual Fund ;e Integration Integrating material ESG factors into Investment Decision Process in .... C G) E 1ii f -C G) :::a ·;; Stewardship C 0 a. rn Safeguarding Investors' interests through monitoring and regular ~ engagements with investe
Slide 22: 2. SIP to remain the cornerstone for AUM performance
2. SIP to remain the cornerstone for AUM performance UTI Mutual Fund Long Tenure SIP Book(1) Monthly Gross SIP Inflow (INR Crore) 570 566 566 560 556 More than 554 554 554 554 10 Years 88% 549 550 550 544 540 538 537 532 I I 530 More than 5 Years 94% 520 510 SEP'22 OCT'22 NOV'22 DEC'22 JAN'23 FEB'23
Slide 23: 3. a) Enabling Business Digitally
3. a) Enabling Business Digitally UTI Mutual Fund □ 24x7 Digital Channels Assisted Journeys integrated Building Community • Customer service for Product & Investment enquiry- Inbound, • Active engagement on multiple touch points across Social Media • Access ot your convenience anytime anywhere, New
Slide 24: 3. b) New Age Digital Channels - #NEWFORYOU
3. b) New Age Digital Channels- #NEWFORYOU UTI Mutual Fund lil!lll NOW DISCOVER Pre s e nting Th e New UTI MUTUAL FUND APP UTI MUTUAL FUND - - Your wealth creation companion - - Fast track your mutual fund business FROM ANYWHERE with Learn, Explore, Invest & Track 70+ Transactions I Visit www.utimf.
Slide 25: 3. c) Current Digital Ecosystem at UTI AMC
3. c) Current Digital Ecosystem at UTI AMC UTI Mutual Fund Riding on Best-in-class Technology and partner Ecosystem Front Office Middle Office Back Office (Revenue generating & Customer facing) (Risk & Compliance) (Accounting, Technology, HR, Finance) Risk& Research & Human Brand Investment Complian
Slide 26: 3. d) Growing online transactions reflect acceptance of digital
3. d) Growing online transactions reflect acceptance of digital UTI Mutual Fund Quarterly Online Gross Sales (as %age of Total Gross 100.00% Sales) 98.00% Number of digital SIP transactions recorded a • growth of 22% in Q2 FY24 as compared to 96.00% 95.10% Q2 FY 23 94.60% 94 .60% 94.80% 93.90% 94.00
Slide 27: 3. e) Steps to increase digital presence are paying off
3. e) Steps to increase digital presence are paying off UTI Mutual Fund Number of Digital Purchase Transaction (in Lakhs) For Customers (i • Seamless accessibility through digital channels 120.00 11 5.8 4 • Paperless & digitally enabled KYC process & 93 .57 100.00 multiple enablers for seamless digi
Slide 28: 3. f) Developing digital resources to be future ready
3. f) Developing digital resources to be future ready UTI Mutual Fund New Grow the Optimize Growth Core Cost Avenues • Identified Focus Areas & • Tapping emerging • Digitizing operations to Roadmap segments reduce cost • Enabling Sales force • Driving digital • Reimagining operating Digitally partne
Slide 29: 4. a) Geographical Reach Across the Country
4. a) Geographical Reach Across the Country UTI Mutual Fund .L UTI Financial .6a ~:.. Centres liil"-,. (UFCs) 5 tt nd 3 Delhi Haryana 6 UTI AMC Employees* Rajasthan 10 Jharkhand Madhya Pradesh 5 Core Sales 7 Team Chhattisgarh 4 Members Maharashtra 28 Telangana 6 Mutual Fund Distributors (MFDs) Karna
Slide 30: 4. b) Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability UTI Mutual Fund Total QAAUM Equity+ Hybrid QAAUM SEP ’22 SEP ’22 Direct 65 Direct 31 MFDs 28 MFDs 57 BND BND - 12 MAR ’23 MAR ’23 Direct 66 Direct 33 MFDs 25 MFDs 55 BND - BND - 12 9 SEP ’23 SEP ’23 Direct 68 Direct 32 MFDs MFDs 57 26 BND - 1
Slide 31: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities UTI Mutual Fund Monthly AAUM September '23 Improved awareness about investing in financial products vis a vis traditional investment UTI Mutual Fund Our established presence in B30 cities has enabled us to T30 77% attract new clients and positions us to cap
Slide 32: 5. a) UTI International Ltd. - Exploring New Destinations
5. a) UTI International Ltd. - Exploring New Destinations UTI Mutual Fund Assets Under Management of INR 24,207 crore as of 30th September 2023 4 Office Locations - Singapore, Dubai, London and Paris with a total of 30 staff & Clients spread across 35+ countries with top 5 being Japan, Switzerland,
Slide 33: 5. b) UTI Retirement Solutions Ltd. - Reaching New Heights
5. b) UTI Retirement Solutions Ltd. - Reaching New Heights UTI Mutual Fund ~ l 00% subsidiary of UTI AMC Ltd. f;;i~ I PFRDA licensed for managing Pension funds ~ Managing Government and non-Government NPS corpus ~ UTI RSL manages 26.40% of the NPS Industry AUM as on 30th September 2023 ~ UTI Retirem
Slide 34: 5. c) UTI Alternatives Pvt. Ltd. - Expanding the Business Portfolio
5. c) UTI Alternatives Pvt. Ltd. - Expanding the Business Portfolio UTI Mutual Fund UTI Alternatives (formerly known as UT/ Capital Pvt. Ltd.), 100% subsidiary of UTI AMC Ltd . mandated to manage and grow the private capital investment business Currently manages 5 active private debt funds (UTI SDOF
Slide 35: ESG Initiatives
ESG Initiatives UTI Mutual Fund • 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 aspe
Slide 36: Financial Snapshot
UTI Mutual Fund Financial Snapshot
Slide 37: Consolidated Statement of Profit & Loss - Quarterly Earnings
Consolidated Statement of Profit & Loss - Quarterly Earnings □ uti UTI Mutual Fund INR crore Particulars Q2 FY 24 Q2 FY 23 %(+/-) Total Revenue from Operations 404 435 (7%) Other Income 2 4 (50%) Total Income 406 439 (8%) Fee & Commission expenses 1 1 Employee benefit expense 111 103 8% Depreciation
Slide 38: Consolidated Statement of Profit & Loss - Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss - Seq. Quarterly Earnings □ uti UTI Mutual Fund INR crore Particulars Q2 FY 24 Ql FY 24 %(+/-) Total Revenue from Operations 404 467 (13%) Other Income 2 1 100% Total Income 406 468 (13%) Fee & Commission expenses 1 100% Employee benefit expense 111 106 5% Dep
Slide 39: Consolidated Statement of Profit & Loss - Half Yearly Earnings
Consolidated Statement of Profit & Loss - Half Yearly Earnings □ uti UTI Mutual Fund INR crore Particulars Hl FY 24 Hl FY 23 %(+/-) Total Revenue from Operations 872 688 27% Other Income 2 17 (88%) Total Income 874 705 24% Fee & Commission expenses l l Employee benefit expense 218 204 7% Depreciatio
Slide 40: Standalone Statement of Profit & Loss - Quarterly Earnings
Standalone Statement of Profit & Loss - Quarterly Earnings □ uti UTI Mutual Fund INR crore Particulars Q2 FY 24 Q2 FY 23 %(+/-) Total Revenue from Operations 311 315 (1 %) Other Income 1 (100%) Total Income 311 316 (2%) Fee & Commission expenses 3 3 Employee benefit expense 95 90 6% Depreciation & A
Slide 41: Standalone Statement of Profit & Loss - Seq. Quarterly Earnings
Standalone Statement of Profit & Loss - Seq. Quarterly Earnings □ uti UTI Mutual Fund INR crore Particulars Q2 FY 24 Ql FY 24 %(+/-) Total Revenue from Operations 311 352 (12%) Other Income 1 (100%) Total Income 311 353 (12%) Fee & Commission expenses 3 3 Employee benefit expense 95 89 7% Depreciati
Slide 42: Standalone Statement of Profit & Loss - Half Yearly Earnings
Standalone Statement of Profit & Loss - Half Yearly Earnings □ uti UTI Mutual Fund INR crore Particulars Hl FY 24 Hl FY 23 %(+/-) Total Revenue from Operations 664 547 21% Other Income 1 (100%) Total Income 664 548 21% Fee & Commission expenses 5 5 Employee benefit expense 184 176 5% Depreciation &
Slide 43: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services □ uti UTI Mutual Fund INR crore Particulars Q2 FY 24 Q2 FY 23 %(+/-) Hl FY 24 Hl FY 23 %(+/-) MF Fees 224 225 (1%) 444 450 (1 %) PMS Fees 7 7 13 13 SUUTI Support Service Fees 1 2 (50%) 3 5 (40%) POP Fees & others 1 1 1 1 Sole of Services - UTI AMC Standalone
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet □ uti UTI Mutual Fund INR crore Particulars Hl FY 24 FY23 %(+/-) Assets: Financial Assets 4,297 3,721 15% Non-Financial Assets 463 454 2% Total Assets 4,760 4,175 14% Liabilities & Equity: Financial Liabilities 217 254 (15%) Non-financial Liabilities 72 53 36% Equity 4,471
Slide 45: Standalone Balance Sheet
Standalone Balance Sheet □ uti UTI Mutual Fund INR crore Particulars Hl FY 24 FY23 %(+/-) Assets: Financial Assets 3,160 3,171 (1 %) Non-Financial Assets 446 447 (1 %) Total Assets 3,606 3,618 (1 %) Liabilities & Equity: Financial Liabilities 189 225 (16%) Non-financial Liabilities 59 45 31% Equity
Slide 46: Operating Profit Margin (bps of AUM)
Operating Profit Margin (bps of MUM) UTI Mutual Fund YE FY 21 YE FY 22 Operating Operating Margin 12 16 Margin Operating Operating Expenses 32 Expenses 25 Operating Operating Revenue 44 Revenue 41 ■ Operating Revenue YE FY 23 Hl FY 24* ■ Operating Expenses Operating Operating Margin 14 ■ Operating M
Slide 47: UTI International - Consolidated Statement of Profit & Loss
UTI International - Consolidated Statement of Profit & Loss □ uti UTI Mutual Fund For the period ended September 2023 For the period ended September 2022 Particulars (GBP in '000) INR crore (GBP in '000) INR crore AUM 23,80,908 24,207 27,65,803 25,105 Sale of Service 5,837 61 6,804 65 M2M gain from
Slide 48: Other Subsidiaries Financial highlights
Other Subsidiaries Financial highlights □ uti UTI Mutual Fund INR crore UTI Retirement Solutions Ltd. UTI Alternatives Pvt. Ltd. UTI Venture Funds Mgmt. Co. Pvt. Ltd. Particulars Hl FY 24 Hl FY 23 Hl FY 24 Hl FY 23 Hl FY 24 Hl FY 23 AUM 2,69,527 2, 17,515 1,799 1,509 Sale of Services 56.6 49.2 3.4 2
Slide 49: Consolidated Ratios
Consolidated Ratios UTI Mutual Fund tt I iiV"I Return on Equity (%) 1i!J-.. PAT Margin (%) i III 0.6 24% 0.55 21% 21% 0.5 8% 0.45 18% 16% 0.4 15% 0.35 12% 0.3 0.25 9% FY 20 FY 21 FY 22 FY 23 Hl FY24* FY 20 FY 21 FY 22 FY 23 Hl FY24* *HJ FY 24 figures have been annualised - 48
Slide 50: Annexures
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Slide 51: Investor Services Key Indicators - Q2 FY 24
Investor Services Key Indicators - Q2 FY 24 UTI Mutual Fund 1.32 lakh 0.78 lakh 15 seconds 0.14Iakh Total Call Volume Outbound Total Call Volume Inbound Average Speed of Answer Live Chats offered • Self service IVR for NAV, SOA, Branch Locator etc. • Chat with Live Agent for Assistance Contact Cente
Slide 52: Breakup of Consolidated investments
Breakup of Consolidated investments UTI Mutual Fund INR crore Breakdown of Total Investment Investment in UTI MF Schemes 2,256 Equity 723 Arbitrage 689 Liquid & Debt 844 Total Investments: Offshore Funds 529 INR 3,890 crore Equity 465 Debt / Hybrid 64 Venture Funds, Other Equity etc.# 185 G Sec & Bo
Slide 53: UTI AMC Board of Directors - Composition
UTI AMC Board of Directors - Composition UTI Mutual Fund Geographical Board Women Directors Representation Composition Representation 6 ■ Domestic ■ Overseas Independent Directors ■ Women Director ■ Non-Executive Non-Independent Directors ■ Whole Time Director - 52
Slide 54: Experienced and Independent AMC Board
Experienced and Independent AMC Board UTI Mutual Fund Mr. Dinesh Kumar Mehrotra I Non - Executive Chairman & Independent Director Mr. Dinesh Kumar Mehrotra is a Non • Executive Chairman and Independent Director of the Company. He has previously served as the Chairman and the Managing Director of UC.
Slide 55: Experienced and Independent AMC Board
Experienced and Independent AMC Board UTI Mutual Fund Mr. Rajeev Kakar I Independent Director Mr. Rajeev Kakar is an Independent Director of the Company. He currently serves on the boards of various banks and financial institutions such as Eurobank Ergasias SA (Greece),Gulf International Bank (GIB B
Slide 56: Experienced and Independent AMC Board
Experienced and Independent AMC Board UTI Mutual Fund Mr. Kiron Kumar Tarania I Non-Executive Nominee Director Mr. Kiron Kumar Tarania is a Non-Executive Nominee Director of the Company. He is currently General Manager - Treasury Division at Punjab National Bank. He is an accomplished finance profes
Slide 57: Disclaimer
Disclaimer UTI Mutual Fund This presentation is for information purposes only and does not constitute a prospectus, on offering circular, on advertisement, a private placement offer letter or offer document or on offer or the recommendation or solicitation of on offer or invitation to purchase or se
Slide 58: THANK YOU
THANK YOU REGISTERED OFFICE: UTI Tower, 'Gn' Block, Bandra Kurla Complex, Bandra (E), Mumbai - 400051 . Phone: 022 - 66786666. UTI Asset Management Company Limited (Investment Manager for UTI Mutual Fund) E-mail: invest@uti.co.in Mutual Fund investments are subject to market risks, read all scheme r
UTI Asset Management Company — Q2 FY24 Earnings Presentation on 6ix