Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q2 FY2023 Earnings Presentation
60 slides from Uti Asset Management's earnings presentation, Oct 20, 2022
Slide 1: Investor Presentation UTI AMC Q2 FY 23
Investor Presentation UTI AMC Q2 FY 23 Mumbai, India | September 2022
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, Children’s Plan INR 14.45 lakh crore in AUM* • Focused Solely on Investment Management and related services • Presence across var
Slide 3: 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 Most efficient Wealth Manager with global presence Deliver best-in-class service The most preferred employer The most innovative wealth creator A socially responsibl
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 0.98% 2.65% 6.25% 8.39% 22.97% 13.60% Mutual Funds 15.22% Retail Shareholders Foreign Portfolio Investors 9.98% Alternate Investment Funds 9.98% Others 9.98% UTI AMC is a professionally managed T. Rowe Price International Ltd. – a global company with no identifiable promo
Slide 7: Our Key Performance Indicators
Our Key Performance Indicators Assets Under Total AUM* MF QAAUM Other AUM^ Management INR 14,45,172 Crore INR 2,33,595 Crore INR 12,11,577 Crore Market NPS AUM MF AUM Equity AUM Share 27.19% 5.98% 4.99% Profitability Revenue growth (3%) EBITDA growth (10%) PAT growth (17%) H1 FY 23 vs H1 FY 22 Core
Slide 8: UTI Group
—— UTI Group Ab AW LL
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: Group AUM for UTI AMC increased by ~14.5% YoY
Group Assets Under Management for UTI AMC increased by ~14.5% YoY INR crore September 2021 September 2022 1,136 (0.14%) 1,509 (0.10%) 1,86,717 (15%) 2,17,515 (15%) 2,08,971 (16%) 2,33,595 (16%) 34,536 (03%) 25,105 (02%) Total INR June 2022 Total INR 12,62,546 crore 1,551 (0.11%) 14,45,172 crore 2,03
Slide 11: UTI MF - witnessed AUM growth in the quarter
UTI MF - witnessed AUM growth in the quarter Domestic MF Closing AUM as on 30th September 2022 Equity INR 72,754 crore ETFs & Index INR 75,454 crore Liquid INR 46,540 crore Hybrid INR 24,867 crore Income INR 12,380 crore MF Closing AUM INR 2,31,996 crore Domestic MF QAAUM for the quarter ended 30th
Slide 12: Outpacing the industry – 11.8% YoY QAAUM growth
Outpacing the industry – 11.8% YoY QAAUM growth, industry grew at 7.8% Total QAAUM INR crore YoY 11.8% 2,33,595 2,24,279 2,08,971 Sep 21 Jun 22 Sep 22 Market Share – Total QAAUM 5.77% 5.94% 5.98% Sep 21 Jun 22 Sep 22 Source: AMFI, Internal. 11
Slide 13: Keystones in Growth – Equity QAAUM
Keystones in Growth – ~13.5% YoY growth in Equity QAAUM Equity QAAUM INR crore Hybrid QAAUM INR crore YoY 13.5% YoY (2.45)% 71,717 26,033 25,702 66,693 63,177 25,391 Sep 21 Jun 22 Sep 22 Sep 21 Jun 22 Sep 22 Market Share – Equity QAAUM Market Share – Hybrid QAAUM 5.19% 5.00% 4.99% 5.61% 4.89% 4.76%
Slide 14: Liquid QAAUM witnessing growth
Liquid QAAUM witnessing growth Income QAAUM INR crore Liquid QAAUM INR crore YoY 8.5% YoY (34.5)% 52,322 19,427 51,306 14,363 12,716 47,288 Sep 21 Jun 22 Sep 22 Sep 21 Jun 22 Sep 22 Market Share – Income QAAUM Market Share – Liquid QAAUM 2.26% 2.15% 2.07% 6.94% 7.19% 6.94% Sep 21 Jun 22 Sep 22 Sep 2
Slide 15: Passive Funds Gaining Traction
Passive Funds Gaining Traction – clocking ~36.6% YoY growth Index & ETFs QAAUM INR crore YoY 36.6% 72,465 65,199 53,046 Sep 21 Jun 22 Sep 22 Market Share – Index & ETFs QAAUM 13.35% 12.53% 12.50% Sep 21 Jun 22 Sep 22 Source: AMFI, Internal. 14
Slide 16: Trend in Net Sales
Trend in Net Sales Quarterly Net Sales for ETF & Index witness steady growth Quarterly Net Sales INR crore Q2FY22 7774 6612 Q1FY23 4473 4854 5367 3491 3771 Q2FY23 1953 1891 1907 768 757 358 -164 -102 -1327 -2838 -3230 Equity Hybrid ETFs & Index Income Liquid Total Half Yearly Net Sales INR crore 149
Slide 17: Key Business Focus Areas
Key Business Focus Areas Consistent Growth of Development Geographical International, of Human Spread Across Retirement Capital the Country and Alternate Business Attracting Prudent Leveraging Right Investment Digital Opportunities Management Adoption through Process Partnerships 16
Slide 18: Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress testing • Regular Compliance Check • Product development • Dedicated Risk Management Team process • Internal & External Audit Team • Risk control self assessment Advisory • Review Mechanism • Equity Research • Debt & M
Slide 19: 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 20: Embedding ESG in our Investment Decisions
1. c) Embedding ESG in our Investment Decisions Sector-specific framework to understand and manage ESG Framework ESG risk consistently across portfolio holdings Responsible Investment Strategy Integration Helps in evaluating the ESG performance of a company Integrating material ESG ESG Database on a
Slide 21: SIP to remain the cornerstone for AUM performance
2. SIP to remain the cornerstone for AUM performance Monthly Gross SIP Inflow (INR Crore) Long Tenure SIP Book(1) 600 531 525 532 538 521 520 504 500 484 474 456 466 421 431 More than 400 10 Years 84.85% 300 200 More than 91.97% 100 5 Years 0 SEP'21 OCT'21 NOV'21 DEC'21 JAN'21 FEB'22 MAR'22 APR'22 M
Slide 22: 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 23: Digital Client Acquisition Cycle
3. b) Digital Client Acquisition Cycle Investor Journey Reach Act Convert Engage Submit a Lead Invest Via Mobile App Search Remarketing SEO Social via Google, Media Invest Now Invest Via Online Portal Email/SMS/ Facebook, WhatsApp YouTube 1 Platforms notification Internet Retargeting Request a Call
Slide 24: Current Digital Ecosystem at UTI AMC
3. c) Current Digital Ecosystem at UTI AMC Front Office Middle Office Back Office (Revenue generating & Customer facing) (Risk & Compliance) (Accounting, Technology, HR, Finance) Brand Investment Risk & Research & Human Message Management Compliance Fund Resource Management Customer Transaction Acco
Slide 25: Growing online transactions reflect acceptance of digital
3. d) Growing online transactions reflect acceptance of digital 100.00% Quarterly Online Gross Sales (as % of Total Gross Sales) 98.00% Number of purchase transactions through Digital grew by 25% in Q2FY23 as compared to Q2FY22. 95.73% 95.80% 96.00% 95.27% 93.90% 94.00% 92.79% Number of digital SIP
Slide 26: Steps to increase digital presence are paying off
3. e) Steps to increase digital presence are paying off Number of Digital Purchase Transaction (in Lakhs) 93.57 90.00 80.00 70.00 For Customers 60.00 • Seamless accessibility through app 50.00 41.40 • Complete paperless and digitally- 40.00 28.05 30.00 26.00 enabled KYC process 20.10 20.00 10.00 0.0
Slide 27: Developing digital resources to be future ready
3. f) Developing digital resources to be future ready Grow the Core New Growth Avenues Optimize Cost • Identify Focus areas • Tap emerging underleveraged segments • Digitization of Operations • Drive Sales force Digitally • Drive Digital Partnerships & Digital Sales • Reimagining Operating Model wit
Slide 28: Geographical Reach Across the Country
4. a) Geographical Reach Across the Country UTI Financial J&K 1 166 Centres Chandigarh Himachal (UFCs) 1 Pradesh 1 Uttarakhand 3 Delhi Haryana 5 5 UTI AMC 1,358 Employees* Rajasthan Uttar Pradesh Assam 4 10 15 Bihar 5 Meghalaya 1 Gujarat Madhya Pradesh West Bengal 15 Tripura Core Sales 5 13 1 643 Ch
Slide 29: Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability 9% 9% 9% Total 28% 26% 26% Sep ‘21 Jun ’22 Sep ’22 QAAUM 63% 65% 65% Direct MFD Bank & Distributors 10% 13% 12% 34% 32% 33% Equity + Hybrid Sep ‘21 Jun ’22 Sep ’22 QAAUM 56% 55% 55% Source: RTA Data 28
Slide 30: Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM Sep ‘22 B30 B30 16.9% 22.8% UTI Mutual Industry Fund T30 T30 77.2% 83.1% Improved awareness about investing in financial Our broad client base also provides us with several products vis a vis traditional investment opportunities, including cros
Slide 31: UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets Under Management of INR 25,105 crore as of 30th September 2022 (INR 35,160 crore as of 30th September 2021) 4 Office Locations – Singapore, Dubai, London and Paris with a total of 29 staff & Clients spread across 38 countries with top
Slide 32: UTI Retirement Solutions Ltd. – Reaching New Heights
5. b) UTI Retirement Solutions Ltd. – Reaching New Heights % 100% subsidiary of UTI AMC Ltd. PFRDA licensed for managing Pension funds Managing Government and non-Government NPS corpus UTI RSL manages 27.19% of the NPS Industry AUM as on 30th September 2022 UTI Retirement Solutions has shown AUM gro
Slide 33: UTI Capital Pvt. Ltd. – Expanding the Business Portfolio
5. c) UTI Capital Pvt. Ltd. – 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 & UTI Structured Debt Opportunities Fund II) an
Slide 34: 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 35: 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 36: Modernizing our technology over years
Modernizing our technology over years 2016-2021 2022-2023 • 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 deployment model
Slide 37: Investing to be Future Ready
Investing to be Future Ready 2016-2021 2022-2023 • 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 38: Financial Snapshot
Financial Snapshot| UTI Mutual Fun, Haq, ek bektar zin
Slide 39: Consolidated Statement of Profit & Loss – Quarterly Earnings
Consolidated Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q2 FY 23 Q2 FY 22 %(+/-) Total Revenue from Operations 436 380 15% Other Income 4 3 33% Total Income 440 383 15% Fee & Commission expenses 1 1 -- Employee benefit expense 103 100 3% Net loss on fair value changes - -
Slide 40: Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings
Consolidated Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q2 FY 23 Q1 FY 23 %(+/-) Total Revenue from Operations 436 293 49% Other Income 4 13 (69%) Total Income 440 306 44% Fee & Commission expenses 1 1 -- Employee benefit expense 103 101 2% Net loss on fair value chan
Slide 41: Consolidated Statement of Profit & Loss – Half Yearly Earnings
Consolidated Statement of Profit & Loss – Half Yearly Earnings INR crore Particulars H1 FY 23 H1 FY 22 %(+/-) Total Revenue from Operations 691 725 (5%) Other Income 17 4 325% Total Income 708 729 (3%) Fee & Commission expenses 1 1 -- Employee benefit expense 204 195 5% Net loss on fair value change
Slide 42: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q2 FY 23 Q2 FY 22 %(+/-) Total Revenue from Operations 316 273 16% Other Income - - -- Total Income 316 273 16% Fee & Commission expenses 3 2 50% Employee benefit expense 90 90 -- Net loss on fair value changes - - -- D
Slide 43: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q2 FY 23 Q1 FY 23 %(+/-) Total Revenue from Operations 316 239 32% Other Income - 1 - Total Income 316 240 32% Fee & Commission expenses 3 2 50% Employee benefit expense 90 86 5% Net loss on fair value changes - 5
Slide 44: Standalone Statement of Profit & Loss – Half Yearly Earnings
Standalone Statement of Profit & Loss – Half Yearly Earnings INR crore Particulars H1 FY 23 H1 FY 22 %(+/-) Total Revenue from Operations 551 548 1% Other Income 1 1 -- Total Income 552 549 1% Fee & Commission expenses 5 4 25% Employee benefit expense 176 175 1% Net loss on fair value changes - - --
Slide 45: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR crore Particulars Q2 FY 23 Q2 FY 22 %(+/-) H1 FY 23 H1 FY 22 %(+/-) MF Fees 225 220 2% 450 426 6% PMS Fees 7 7 -- 13 13 -- SUUTI Support Service Fees 2 3 (33%) 5 5 -- POP Fees & others 1 - 100% 1 1 -- Sale of Services - UTI AMC Standalone 235 230 2% 469 4
Slide 46: Consolidated Balance Sheet
Consolidated Balance Sheet INR crore Particulars H1 FY 23 H1 FY 22 %(+/-) Assets: Financial Assets 3,476 3,305 5% Non Financial Assets 460 434 6% Total Assets 3,936 3,739 5% Liabilities & Equity: Financial Liabilities 245 233 5% Non-financial Liabilities 41 106 (61%) Equity 3,650 3,400 7% Total Liab
Slide 47: Standalone Balance Sheet
Standalone Balance Sheet INR crore Particulars H1 FY 23 H1 FY 22 %(+/-) Assets: Financial Assets 2,929 2,789 5% Non Financial Assets 454 427 6% Total Assets 3,383 3,216 5% Liabilities & Equity: Financial Liabilities 222 213 4% Non-financial Liabilities 36 69 (48%) Equity 3,125 2,934 7% Total Liabili
Slide 48: Operating Profit Margin (bps of AAUM)
Operating Profit Margin (bps of AAUM) 13 12 YE FY 20 45 44 YE FY 21 32 32 Operating Revenue Operating Expenses Operating Margin 16 16 41 39 YE FY 22 H1 FY 23* 25 23 47 *H1 FY23 figures have been annualized
Slide 49: UTI International – Consolidated Statement of Profit & Loss
UTI International – Consolidated Statement of Profit & Loss For the Period Ended September 2022 For the Period Ended September 2021 Particulars (GBP in ‘000) INR crore (GBP in ‘000) INR crore AUM 27,65,803 25,105 34,58,321 34,536 Sale of Service 6,804 65 5,383 55 M2M gain from Investment 2,697 26 7,
Slide 50: 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 H1 FY 23 H1 FY 22 H1 FY 23 H1 FY 22 H1 FY 23 H1 FY 22 AUM 2,17,515 1,86,717 1,509 1,136 - - Sale of Services 49.2 44.6 2.4 2.9 - - M2M Gain on Inves
Slide 51: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.5 24% 0.45 21% 42% 42% 40% 0.4 18% 16% 16% 16% 34% 14% 0.35 15% 31% 0.3 12% 10% 0.25 9% FY 19 FY 20 FY 21 FY 22 H1 FY 23* FY 19 FY 20 FY 21 FY 22 H1 FY 23* *H1 FY 23 has been annualized *H1 FY 23 has been annualized 50
Slide 52: Annexures
Annexures UTI Mutual Fun, Haq, ek betar zi 51
Slide 53: Investor Services Key Indicators – Q2 FY 23
Investor Services Key Indicators – Q2 FY 23 1.4 lakh 0.6 lakh 05 seconds 0.16 lakh Total Call Volume Total Call Volume Average Speed of Live Chats Outbound Inbound Answer offered Contact Center • Self service IVR for NAV, SOA, Branch Locator etc. • Chat with Live Agent for Assistance • Inbound Calls
Slide 54: Breakup of Consolidated investments
Breakup of Consolidated investments As on 30th September 2022 INR crore Breakdown of Total Investment Investment in UTI MF Schemes 2,054 Equity 664 Arbitrage 704 9.8% 7.3% Liquid & Debt 686 Offshore Funds 462 Total 15.2% Investments: Equity 423 INR 3,035 crore Debt / Hybrid 39 67.7% Venture Funds, O
Slide 55: 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% Women Director Domestic Overseas 54
Slide 56: Experienced and Independent AMC Board
Experienced and Independent AMC Board Mr. Dinesh Kumar Mehrotra | Non - Executive Chairman & 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 holds a
Slide 57: 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 58: Experienced and Independent AMC Board
Experienced and Independent AMC Board Ms. Jayashree Vaidhyanathan | Independent Director Jayashree Vaidhyanathan currently serves as a Co-Founder and CEO of BCT Digital, a technology company specializing in AI and Predictive analytics. Prior to BCT, she was associated with Scope International Privat
Slide 59: 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 60: 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: invest@uti.co.in Mutual Fund investments are subject to market risks,
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