Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Investor Presentation (April 2023)
21 slides from Uti Asset Management's investor presentation, April 2023
Slide 1: UTI Focused Equity Fund
UTI Focused Equity Fund (An open ended equity scheme investing in maximum 30 stocks across market caps) SCHEME Large Cap Large & Mid Flexi Cap Focused Mid Cap CATEGORY Fund Cap Fund Fund Fund Fund STOCK Low Moderate High Concentration Concentration Concentration CONCENTRATION (> 60 stocks) (40 - 60
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: What is UTI Focused Equity Fund?
What is UTI Focused Equity Fund? Concentrated Portfolio Exposure to hand-picked high-conviction ideas Uniquely Positioned Leverage of Distinct portfolio relative to Research Expertise broader market indices with Experienced fund potential for alpha creation management team tracking large-set of comp
Slide 5: Investment Strategy – Strike a balance between risk & return
Investment Strategy – Strike a balance between risk & return Transformation Cyclical Opportunities Opportunities Pick businesses where Pick cyclicals when strategy is being realigned valuations are to make the outcomes attractive and benefit more sustainable from mean reversion Sustainable Businesse
Slide 6: Sustainable Business: One of the leading Private Banks
Sustainable Business: One of the leading Private Banks Profit After Tax (PAT) Trend Return on Asset (RoA) and 400000 Return on Equity (RoE) Trend 350000 25 2.0 300000 20 1.9 Rupees in million 250000 1.8 Percentage Percentage 15 200000 1.7 150000 10 1.6 100000 5 1.5 50000 0 0 1.4 PAT ROA (%) RHS ROE
Slide 7: Cyclical Opportunity: Largest Auto manufacturer
Cyclical Opportunity: Largest Auto manufacturer Volume Growth Trend EBITDA Margin Trend 14.0% 20 40% 12.0% Total Volume (in Lakhs) 30% Volume Growth (%) 16 10.0% 20% Percentage 12 8.0% 10% 8 6.0% 0% 4 4.0% -10% 2.0% 0 -20% 0.0% Total Volume LHS Volume growth (%) RHS EBITDA Margin (%) • Volumes peake
Slide 8: Transformation/Turnaround Opportunity: Second largest Telecom provider
Transformation/Turnaround Opportunity: Second largest Telecom provider Average Revenue Per User EBITDA Margin 250 45% 200 40% Percentage 35% Rupees 150 30% 100 25% 50 20% 0 15% ARPU (Rs) EBITDA Margin* • High competitive intensity due to new entrant led to sharp fall in mobile tariff impacting profi
Slide 9: Exclusion Filter – What to avoid in the portfolio
Exclusion Filter – What to avoid in the portfolio PORTFOLIO EXCLUSIONS Management Inferior RoCE Issues Businesses which Corporate Governance through a cycle & Minority shareholder generate RoCE lower issues than cost of capital High Leverage Inconsistent Companies with Sustainability Cash flows high
Slide 10: Investment Framework
Investment Framework 01 Investment Style Blend (Biased to High RoCEs & Consistent OCFs) Bottom-up Approach 02 Stock Selection Preference for quality companies with long run-way for growth + transformation & mean reversion opportunities Agnostic to Market capitalisation 03 Market Cap Preferred Alloca
Slide 11: UTI Focused Equity Fund – Fund Facts
UTI Focused Equity Fund – Fund Facts Type of scheme Investment Objective An open-ended equity scheme The investment objective of the scheme is to generate long term investing in maximum 30 stocks capital appreciation by investing in equity & equity related across market caps instruments of maximum 3
Slide 12: Fund Facts (contd.)
Fund Facts (contd.) Fund Snapshot Portfolio Composition# Fund Size: OCF ROCE Monthly Avg. AuM : ` 2,322 Crores C1 : 100% R1 : 55% Last Day AuM : ` 2,299 Crores C2 : 0% R2 : 34% C3 : 0% R3 : 11% No. of Unit Folios : 1,72,865 Price to Market Capitalisation (%) Book 6.64 Fund BM 7.27 Price to UTI Focus
Slide 13: Scheme Portfolio
Scheme Portfolio Equity Holdings Act. Wt Act. Wt STOCK NAME SECTOR % to NAV STOCK NAME SECTOR % to NAV % % HDFC BANK LTD FINANCIAL SERVICES 9.56 3.32 ULTRATECH CEMENT LTD. CONSTRUCTION MAT 2.98 2.21 ICICI BANK LTD FINANCIAL SERVICES 8.78 3.40 JUBILANT FOODWORKS LTD. CONSUMER SERVICES 2.63 2.48 TCS L
Slide 14: Portfolio Snapshot
Portfolio Snapshot Active Stock Position Sectoral Breakdown (%) (As compared to Benchmark) (As compared to Benchmark) Active Weight FINANCIAL SERVICES 31.84 0.14 Overweight (Top 5) IT 11.28 0.10 % to Act. Wt AUTO & AUTO COMPONENTS 9.92 4.35 STOCK NAME SECTOR NAV % FMCG 9.09 0.46 LTIMINDTREE LTD IT 4
Slide 15: Portfolio Commentary
Portfolio Commentary Financial Services: The Fund is overweight in private Automobile & Automobile Components: The sector banks and underweight in public sector Automobile sector, after going through a downturn for banks. It remains confident of the liability franchise the last 3-4 years, is showing
Slide 16: Performance Track Record
Performance Track Record UTI Focused Equity Fund Performance Vs Benchmark as of 31/03/2023 Fund Performance Vs Benchmark Growth of ` 10,000/- Period Scheme AB: Nifty 50 TRI Scheme B: Nifty 500 TRI AB: Nifty 50 TRI B: Nifty 500 TRI (%) Returns (%) (%) Returns (`) (`) (`) 1 Year 1.65 -1.22 0.59 10,165
Slide 17: Why invest in UTI Focused Equity Fund?
Why invest in UTI Focused Equity Fund? Uniquely Positioned Concentrated Portfolio Distinct portfolio relative to Exposure to hand-picked broader market indices with high-conviction ideas potential for alpha creation Optimal Portfolio Leverage of Diversification Research Expertise Maximum of 30 stock
Slide 18: 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 19: 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 20: 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 21: THANK YOU
THANK YOU 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
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