Nippon Life India Asset Management Ltd. · NSE:NAM_INDIA
Nippon Life India Asset Management — Investor Day (August 2021)
32 slides from Nippon Life India Asset Management's investor day presentation, Aug 31, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
August 31, 2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Dalal Street, Fort, Plot No. C/1, G Block, Mumbai 400 001 Bandra Kurla Complex, Bandra (East), Mumbai 400 051 BSE Scrip Code: 540767 NSE Scrip Symbol: NAM-INDIA Dear Sir(s), Re:
Slide 2: Capital Markets' Day August 2021
Capital Markets’ Day August 2021
Slide 3: Key drivers
1 Retail & Institutional Business Key drivers 2 3 ETF - Opportunity & Execution Digital Leadership
Slide 4: Retail & Institutional Business - Key drivers
1 Retail & Institutional Business Key drivers
Slide 5: Overview
Overview REACH Presence in ~280 locations with 980+ employees A WELL-ROUNDED PRODUCT PORTFOLIO PRODUCTS ACTIVE MFs ETFs INDEX FUNDS INTERNATIONAL FUNDS SIPs AIF/ PMS INVESTOR RETAIL HNIs CORPORATES NIMF AAUM DISTRIBUTION DIRECT DISTRIBUTION DIRECT DIRECT 16% SPLIT 85% 15% 62% 38% 84% Family Mass Dir
Slide 6: Products
A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 7: A well-rounded product suite
A well-rounded product suite Active Passive Equity Fixed Income Diversified Upto 1 Year Domestic Equity NI Small Cap Fund NI Liquid Fund NI Nifty Smallcap 250 Index Fund NI Growth Fund NI Overnight Fund NI Index Fund - Sensex Plan NI Flexi Cap Fund NI Money Market Fund NI Nifty Midcap 150 Index Fund
Slide 8: New products launched
New products launched Target Investor Segment Schee Scheme NFO Quarter Retail HNIs Corporate Nippon India ETF Nifty IT Jun-20 1QFY21 ✓ ✓ ✓ Nippon India Multi Asset Fund Aug-20 2QFY21 ✓ ✓ Nippon India Nifty Smallcap 250 Index Fund Sep-20 2QFY21 ✓ ✓ Nippon India ETF Nifty CPSE Bond Plus SDL - 2024 Mat
Slide 9: Retail Business
Retail Business A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 10: Strong distribution network
Strong distribution network Total base of empaneled distributors rose to approx. 80,000 77 95 88 79,700+ Banks National Distributors Alternate Mutual Fund (incl. PSU banks) Distributors CHANNEL Large base of MFDs - one of our biggest strengths PROACTIVE COMMUNICATION - Market Updates, New Product La
Slide 11: Right level of engagement with MFDs
Right level of engagement with MFDs INDUSTRY Relationship MFD Count IND AAUM Split Drivers Investor Management AAUM (INR) Managed by Uniqueness of Product Zonal & 1,120 40% Focussed on High Regional Fund Performance & Consistency Value Heads Investors 1,805 15% Quality of Engagement Sales Team 37% F
Slide 12: Other Engagement initiatives
Other Engagement initiatives Wealth Connections WEALTH CONNECTIONS Industry-first Geo Targeting campaign • NIMF sales leaders interviewed Top Partners • First of its kind unique campaign in BFSI about their journey in the MF industry Industry to help investors find MF distributors • Helped strengthe
Slide 13: Institutional Business
Institutional Business A <2 Nippon Life inci Asset Management Ltd (Formerly Reliance Nippon Life Asset Management Limited)
Slide 14: Strong Connect across Corporates & HNIs
Strong Connect across Corporates & HNIs Target Segment Products Purpose of Investing • Top 400 Corporate Treasuries Invest treasury corpus • Fixed Income Funds • PSU Banks • ETFs - CPSE, Sectoral ETFs, Fixed • Fund Raising • Private Banks Income ETFs • Stake Sale by Promoter or Key Clients • Public
Slide 15: Strategy
Strategy • Strengthen distribution network - Proactive communication & Partner empowerment RETAIL • Equity - Push for fund approval across categories in Banks to grow market share • Focus on SIP for stable equity flows • Strengthen direct connect with HNIs & family offices • Engage with Wealth Count
Slide 16: Key drivers: ETF - Opportunity & Execution
Key drivers 2 ETF - Opportunity & Execution
Slide 17: Passive assets - Global scenario
Passive assets - Global scenario Global ETF & ETP assets 10,000 10,000 7,500 7,500 5,000 5,000 2,500 2,500 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Jul-21 ETF Assets ETP Assets #ETFs #ETPs ✓ On US Exchanges, 7 out of the Top 25 Volume No. Name Tur
Slide 18: ETF assets - Indian context
ETF assets - Indian context Since 2002, ETF assets in India have grown by approx. 80% (CAGR) 3,500 3,307 120 3,000 2,897 90 2,500 2,000 1,543 60 1,396 1,500 1,000 788 30 502 500 37 34 207 0 1 4 8 59 102 114 128 0 13 24 87 0 0 Jul-21 Mar-08 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-09 Mar-10 Mar-
Slide 19: GOI initiatives & Regulatory changes
GOI initiatives & Regulatory changes Provident Funds can increase equity Insurance companies allowed to invest allocation from 5 - 15% through in select ETFs investment in select ETFs CPSE ETF No STT on buying and negligible STT on 1st ever ETF by GOI for divestment of selling of ETFs as against 10b
Slide 20: Change in Market Dynamics
Change in Market Dynamics Tremendous rise Improved ease Products moving in awareness and accessibility to next level • Greater acceptance • Movement towards • Introduction of unique and adoption of ETFs propositions, through RIA model in the last 3 years ETF asset allocation • Passive assets have •
Slide 21: Strong Pedigree
Strong Pedigree 2016 - Acquired Goldman Sachs AM business Pioneers of passive business in India 19 Years - Track-record - Oldest in Indian Industry 6x - Passive AUM growth in 5 years ~66% Volume on the 2002 - First to conceptualize Gold ETF in the world exchanges 2003 - Launched first Money Market E
Slide 22: ETF volumes - NIMF vs. Industry
ETF volumes - NIMF vs. Industry NSE volume (Apr - Jun 2021) (INR mn) Average Daily Turnover on NSE Nifty 50 Nifty Bank ETFs & Mutual Funds Gold ETFs Liquid ETFs ETFs Private Bank ETFs NIMF 247 363 186 1,034 Industry Average 5 11 15 21 (excl. NIMF) NIMF’s volume (vis-à-vis ‘Rest of the Industry’ 49x
Slide 23: Key drivers: Digital Leadership
Key drivers 3 Digital Leadership
Slide 24: Future ready and Riding the Perpetual Beta
Future ready and Riding the Perpetual Beta Geared to serve customers end-to-end, digitally with a 360˚omni-channel approach, no matter where they are ACQUIRE SELL Digital acquisition through Complete suite of Digital Assets to serve the performance campaigns and diverse needs of customers across seg
Slide 25: Ahead-of-the-curve & Building an intelligent ecosystem
Ahead-of-the-curve & Building an intelligent ecosystem Digital Ecosystem Hinterlands & Towns Enterprise Asset Suite Metros & Tier 1 Cities Core Strategic Pillars Build strong Tier 2 & 3 Cities online Business Easy 2.0 presence to App Simply Save Invest Easy App App acquire Acquisition & Distribution
Slide 26: Mobile First Strategy - Early, Diversified & Omni-Present
Mobile First Strategy - Early, Diversified & Omni-Present Conversational Commerce- New purchase journey & M-site - Leveraging largest social chat application - Invest anywhere, anytime For investors who love an app free world WhatsApp - as a Digital Channel Purchase in KYC Explore Digital LF Check P
Slide 27: Go Green Platforms enabling Distribution and Adoption
Go Green Platforms enabling Distribution and Adoption Business Easy Virtual Salesforce - Feet on Street to Fingers on AI based Built-in analytics Screen - Digitally enabling our MFD’s to carry on serving their customers virtually One to Many Campaign Management Tool ➢ Adopted by over 40K partners ➢
Slide 28: Peeling the DIY Environment & Learnings into Fintech / WealthTech
Peeling the DIY Environment & Learnings into Fintech / WealthTech Rating DIY Stimuli in Ecommerce Speed Customer Reviews Similar Products Price Discount 1 Price 2 Discounts 3 Rating 4 Review 5 Similar Product 6 Delivery Speed E-Commerce Stimuli in Fin-tech Controllable Factors v/s Uncontrollable Fac
Slide 29: Enabling WealthTech for Tomorrow - Being Future Ready
Enabling WealthTech for Tomorrow - Being Future Ready IOT: Expansion of Voice to Vernacular: Expanding AI & ML: Higher retention & acquisitions across our ‘Assistants’ as a stepping Reach in the untapped stone to the ‘connected Real Bharat Digital Assets & APIs world’ NIMF Digital Ecosystem 199 Mn N
Slide 30: Recognition from reputed National & Global Conclaves
Recognition from reputed National & Global Conclaves Conversational Commerce Asia Asset Management Best of the Best Awards 2021 FinTech Innovation January 2021 ETBFSI Smartech BFSI Leadership Smartech BFSI Leadership Best Customer Engagement of Best Use of Emerging or Innovative Outstanding Use of A
Slide 31: Thank you for your time! Stay safe!
Thank you for your time! Stay safe!
Slide 32: Disclaimer
Disclaimer This presentation does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer, or a solicitation of any offer, to purchase or sell any securities under the Companies Act, 2013 and the rules made thereunder, the S
Nippon Life India Asset Management — Investor Day (August 2021) on 6ix