Uti Asset Management Co. Ltd. · NSE:UTIAMC
Uti Asset Management — Q1 FY2023 Earnings Presentation
56 slides from Uti Asset Management's earnings presentation, Jul 27, 2022
Slide 1: Investor Presentation UTI AMC Q1 FY 23
Investor Presentation UTI AMC Q1 FY 23 Private and Confidential | Mumbai, India | June 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 13.82 lakh crore in AUM* • Focused Solely on Investment Management and related services • Presence across var
Slide 3: UTI AMC – 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 1.10% 2.57% 6.31% 8.22% 22.97% 13.67% 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: Key Performance Indicators
Key Performance Indicators Assets Under Total AUM* MF QAAUM Other AUM^ Management INR 13,81,545 Crore INR 2,24,279 Crore INR 11,57,266 Crore Market NPS AUM MF AUM Equity AUM Share 27.37% 5.94% 5.00% Profitability Revenue growth (12%) EBIITDA growth (41%) PAT growth (39%) Q1FY23 vs Q1FY22 Core Revenu
Slide 8: UTI Group
—— UTI Group Ab AK AL
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 Assets Under Management for UTI AMC increased by ~15% YoY
Group Assets Under Management for UTI AMC increased by ~15% YoY INR crore June 2021 June 2022 1,213 (0.14%) 1,551 (0.11%) 1,76,338 (15%) 1,87,210 (16%) 2,03,786 (15%) 2,24,279 (16%) 30,498 (02%) 25,990 (02%) Total INR March 2022 Total INR 12,00,882 crore 1,088 (0.08%) 13,81,545 crore 2,01,919 (15%)
Slide 11: UTI MF - one of the few AMC to witness AUM growth in the quarter
UTI MF - one of the few AMC to witness AUM growth in the quarter Domestic MF Closing AUM as on 30th June 2022 Equity INR 64,434 crore ETFs & Index INR 64,299 crore Liquid INR 43,973 crore Hybrid INR 24,984 crore Income INR 12,312 crore MF Closing AUM INR 2,10,002 crore Domestic MF QAAUM for the quar
Slide 12: Outpacing the industry – 19.8% YoY QAAUM growth
Outpacing the industry –19.8% YoY QAAUM growth, industry grew at 13.8% Total QAAUM INR crore YoY 19.8% 2,23,842 2,24,279 1,87,210 Jun 21 Mar 22 Jun 22 Market Share – Total QAAUM 5.64% 5.83% 5.94% Jun 21 Mar 22 Jun 22 Source: AMFI, Internal. 11
Slide 13: Keystones in Growth – ~23.5% YoY growth in Equity QAAUM
Keystones in Growth – ~23.5% YoY growth in Equity QAAUM Equity QAAUM INR crore Hybrid QAAUM INR crore YoY 23.5% YoY 9.5% 26,444 69,287 66,693 25,702 54,009 23,471 Jun 21 Mar 22 Jun 22 Jun 21 Mar 22 Jun 22 Market Share – Equity QAAUM Market Share – Hybrid QAAUM 5.12% 5.17% 5.00% 5.88% 5.05% 4.89% Jun
Slide 14: Liquid QAAUM witnessing steady growth
Liquid QAAUM witnessing steady growth Income QAAUM INR crore Liquid QAAUM INR crore YoY 21.2% YoY -34.3% 21,874 52,322 47,848 17,816 43,184 14,363 Jun 21 Mar 22 Jun 22 Jun 21 Mar 22 Jun 22 Market Share – Income QAAUM Market Share – Liquid QAAUM 2.50% 2.34% 2.15% 6.66% 6.62% 7.19% Jun 21 Mar 22 Jun 2
Slide 15: Passive Funds Gaining Traction – ~46% YoY growth
Passive Funds Gaining Traction – clocking ~46% YoY growth Index & ETFs QAAUM INR crore YoY 45.9% 62,447 65,199 44,672 Jun 21 Mar 22 Jun 22 Market Share – Index & ETFs QAAUM 13.09% 12.80% 12.53% Jun 21 Mar 22 Jun 22 Source: AMFI, Internal. 14
Slide 16: Trend in Net Sales
Trend in Net Sales Quarterly Net Sales for ETF & Index capture ~11.8% of Industry INR crore Quarterly Net Sales 7,128 5,832 Total 4,854 Q1FY22 3,771 Hybrid 2,346 1,953 Q1FY23 975 850 Income 358 Equity -164 ETFs & Index Liquid -2,875 -3,230 Yearly Net Sales INR crore Total 19,428 14,187 12,565 FY 201
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: 1. a) Prudent Investment Management Policies
1. a) Prudent Investment Management Policies Risk Identification Control • Stress testing • Internal & External Audit Team • Product development • Regular Compliance Check process • Dedicated Risk Management Team • Risk control self assessment Advisory • Review Mechanism • Equity Research • Debt & M
Slide 19: 1. b) 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: 1. c) Embedding ESG in our Investment Decisions
1. c) Embedding ESG in our Investment Decisions • At UTI AMC, we believe in promoting good Environment, Social & Governance (ESG) standards in the companies we invest in and consider this as an essential part of our ownership responsibilities. • We have adopted a formal stewardship code, voting poli
Slide 21: 2. 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) 600 531 521 525 504 484 500 456 466 421 431 More than 378 397 400 10 Years 83.9% 348 300 200 More than 91.4% 100 5 Years 0 JUN'21 JUL'21 AUG'21 SEP'21 OCT'21 NOV'21 DEC'21 JAN'22 MAR'22
Slide 22: 3. a) 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: 3. b) 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: 3. c) 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: 3. d) 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 73% in Q1FY23 as compared to Q1FY22. 95.73% 95.80% 96.00% 95.27% 95.20% 94.00% 92.79% Number of digital SIP
Slide 26: 3. e) 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 29.50 30.00 26.00 enabled KYC process 20.10 20.00 10.00 0.0
Slide 27: 3. f) 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: 4. a) Geographical Reach Across the Country
4. a) Geographical Reach Across the Country UTI Financial J&K 1 167 Centres Chandigarh Himachal (UFCs) 1 Pradesh 1 Uttarakhand 3 Delhi Haryana 5 5 UTI AMC 1,383 Employees* Rajasthan Uttar Pradesh Assam 4 10 15 Bihar 5 Meghalaya 1 Gujarat Madhya Pradesh West Bengal 15 Tripura Core Sales 5 13 1 722 Ch
Slide 29: 4. b) Multi-channel distribution network brings stability
4. b) Multi-channel distribution network brings stability 9% 9% 9% Total 29% 27% 26% Jun ‘21 Mar ’22 Jun ’22 QAAUM 62% 64% 65% Direct MFD Bank & Distributors 9% 11% 13% 33% 34% 32% Equity + Hybrid Jun ‘21 Mar ’22 Jun ’22 QAAUM 58% 55% 55% Source: RTA Data 28
Slide 30: 4. c) Outpacing the Industry in B30 cities
4. c) Outpacing the Industry in B30 cities Monthly AAUM Jun ‘22 B30 B30 16.6% 23.3% UTI Mutual Industry Fund T30 T30 76.7% 83.4% 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: 5. a) UTI International Ltd. – Exploring New Destinations
5. a) UTI International Ltd. – Exploring New Destinations Assets Under Management of INR 25,990 crore as of 30th June 2022 (INR 30,498 crore as of 30th June 2021) 4 Office Locations – Singapore, Dubai, London and Paris with a total of 26 staff & Clients spread across 38 countries with top 5 being Ja
Slide 32: 5. b) 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 27.37% of the NPS Industry AUM as on 30th June 2022 UTI Retirement Solutions has shown AUM growth o
Slide 33: 5. c) 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 Q1 FY 23 Q1 FY 22 %(+/-) Total Revenue from Operations 293 344 (15%) Other Income 13 2 550% Total Income 306 346 (12%) Fee & Commission expenses 1 1 -- Employee benefit expense 101 94 7% 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 Q1 FY 23 Q4 FY 22 %(+/-) Total Revenue from Operations 293 301 (3%) Other Income 13 4 225% Total Income 306 305 -- Fee & Commission expenses 1 1 -- Employee benefit expense 101 115 (12%) Net loss on fair value ch
Slide 41: Standalone Statement of Profit & Loss – Quarterly Earnings
Standalone Statement of Profit & Loss – Quarterly Earnings INR crore Particulars Q1 FY 23 Q1 FY 22 %(+/-) Total Revenue from Operations 239 276 (13%) Other Income 1 0 100% Total Income 240 276 (13%) Fee & Commission expenses 2 2 -- Employee benefit expense 86 85 1% Net loss on fair value changes 5 0
Slide 42: Standalone Statement of Profit & Loss – Seq. Quarterly Earnings
Standalone Statement of Profit & Loss – Seq. Quarterly Earnings INR crore Particulars Q1 FY 23 Q4 FY 22 %(+/-) Total Revenue from Operations 239 262 (9%) Other Income 1 0 -- Total Income 240 262 (8%) Fee & Commission expenses 2 2 -- Employee benefit expense 86 101 (15%) Net loss on fair value change
Slide 43: Details of Consolidated Sale of Services
Details of Consolidated Sale of Services INR crore Particulars Q1 FY 23 Q1 FY 22 %(+/-) Q4 FY 22 %(+/-) MF Fees 225 206 9% 228 (1%) PMS Fees 6 6 -- 7 (14%) SUUTI Support Service Fees 3 2 50% 3 -- POP Fees & others 0 1 (100%) 1 (100%) Sale of Services - UTI AMC Standalone 234 215 9% 239 (2%) UTI Inte
Slide 44: 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 17 41 40 YE FY 22 Q1 FY 23* 25 23 43 *Q1FY23 figures have been annualized
Slide 45: UTI International – Consolidated Statement of Profit & Loss
UTI International – Consolidated Statement of Profit & Loss For the Quarter Ended June 2022 For the Quarter Ended June 2021 Particulars (GBP in ‘000) INR crore (GBP in ‘000) INR crore AUM 27,08,554 25,990 29,62,513 30,498 Sale of Service 3,266 32 2,485 26 M2M gain from Investment (3,505) (34) 1,988
Slide 46: 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 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 Q1 FY 23 Q1 FY 22 AUM 2,03,786 1,76,338 1,551 1,213 -- -- Sale of Services 24.1 21.8 1.1 1.5 -- -- M2M Gain on I
Slide 47: Consolidated Ratios
Consolidated Ratios PAT Margin (%) Return on Equity (%) 0.5 24% 0.45 21% 42% 40% 0.4 18% 16% 16% 34% 14% 0.35 15% 31% 31% 0.3 12% 10% 10% 0.25 9% FY 19 FY 20 FY 21 FY 22 Q1 FY 23* FY 19 FY 20 FY 21 FY 22 Q1 FY 23* *Q1 FY 23 has been annualized *Q1 FY 23 has been annualized 46
Slide 48: Annexures
Annexures UTI Mutual Fun, Haq, ek betar zi 47
Slide 49: Investor Services Key Indicators – Q1 FY 23
Investor Services Key Indicators – Q1 FY 23 1.23 lakh 0.58 lakh 3.01 seconds 0.15 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 C
Slide 50: Breakup of Consolidated investments
Breakup of Consolidated investments Breakdown of Total Investment As on 30th June 2022 INR crore Investment in UTI MF Schemes 2,385 Equity 607 7.8% Arbitrage 996 11.6% Liquid & Debt 782 Total Investments: Offshore Funds 344 INR 2,958 crore Equity 308 Debt / Hybrid 36 80.6% Venture Funds, Other Equit
Slide 51: 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 50
Slide 52: 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 53: 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 54: 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 55: 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 56: 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: investor.relations@uti.co.in Mutual Fund investments are subject to ma
UTI Asset Management Company — Q1 FY2023 Earnings Presentation on 6ix