HDFC Asset Management Company Limited Q3 FY18-19 1
Strong Macro Fundamentals and Industry Growth Enablers High Savings Culture… ..Shift to Financial Assets.. Growing Household Savings (Rs trn) (1) % of Gross Household Savings (1) 100% 0.5 30 0.5 0.5 0.4 0.4 80% 25 0.3 46% 51% 55% 55% 59% 60% 12.7 14.0 20 15.1 60% 14.2 14.7 13.9 15 40% 10 18.8 54% 49% 15.2 45% 45% 14.0 20% 41% 12.6 40% 11.9 10.6 5 9.3 0 0% (2.9) (3.3) (3.6) (3.8) (3.9) (3.7) (6.7) FY12 FY13 FY14 FY15 FY16 FY17 (5) FY12 FY13 FY14 FY15 FY16 FY17 FY 18 Gross financial savings Savings in physical assets (inc Gold/Silver) Gross Financial Savings Savings in Physical Assets Gold and Silver Financial Liabilities …With Increasing Preference for Mutual Funds Financial Savings and Equity Inflows into Mutual Funds (2) Mutual Fund AUM Reducing the Gap with Bank deposits (4) Financial Savings Equity-oriented MF Rs. bn Total Deposits’ Total Financial Net Sales Currency Share (%) Share (%) Savings (3) (Rs. trn) 20.6% 13.4% 150.0 FY12 11% 58% 9,282 5 10.4% 104.0 91.9 FY13 11% 57% 10,609 (144) 100.0 67.2 FY14 8% 56% 11,859 (113) 50.0 21.4 FY15 11% 49% 12,531 809 12.3 7.0 0.0 FY16 13% 42% 15,167 938 FY13 FY16 FY18 FY17 (23%) 69% 14,005 1,070 Mutual Fund AUM Bank Deposits FY18 25% 26% 18,767 2,608 2 ____________________ (1) Source: MOSPI, CRISIL Research; (2) Source: RBI, CSO, CRISIL Research; (3) Excluding Trade debt (Net); (4) Source: AMFI, RBI, CRISIL Research; Note: Bank deposits includes nationalised banks, private sector banks and foreign banks
Strong Macro Fundamentals and Industry Growth Enablers Mutual Fund - Equity AUM as a % Market Cap. (2) Mutual Fund AUM as a % of GDP (1) 80% 160% 149% 72% 70% 140% 60% 120% 108% 48% 50% 100% 45% 85% 40% 80% 68% 67% World Average 33% 31% World Average 59% 59% 28% 30% 28% 60% 27% 49% 19% 37% 20% 40% 29% 13% 20% 10% 20% 15% 13% 11% 10% 7% 6% 5% 4% 4% 0% 0% Australia USA France UK Brazil Germany S.Africa Japan Korea Chile China Italy India Mexico Australia USA Germany UK Brazil France Japan S. Africa Italy Mexico Korea India China Chile Structural Shift in Savings Habit Supporting the Future Growth Runway for the Mutual Fund Industry ____________________ 3 (1) Source: IMF (GDP, CY 2018), IIFA (MF AUM, CY 2018:Q1); only open-ended funds have been considered. (2) Source: Bloomberg (Market-Cap CY 2018:Q1), IIFA (MF AUM, CY 2018:Q1); only open-ended funds have been considered; balanced/mixed funds are assumed to be composed of 70% equity and 30% debt.
Industry - AUM and Net Sales 43% 44% 45% 36% 44% 25% 35% 34% 27% 22.9 1.1 22.0 21.4 21.3 0.8 1.0 0.8 Mar-14 to Dec-18 CAGR: 4.5 17.5 Overall: 23%; Equity: 34%; Debt: 10%; Liquid: 32% 2.9 3.9 3.4 0.5 3.1 12.3 7.0 8.3 7.3 8.0 10.8 0.2 AUM ( ₹ trn) 2.0 0.2 7.6 8.3 1.6 7.0 0.2 0.2 1.3 5.8 0.9 5.3 10.2 9.8 9.4 9.2 4.7 4.0 6.3 4.3 3.7 1.9 2.1 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 Equity Debt Liquid Others FYTD19 Arbitrage net flows: ₹ 16.68 bn Equity as a % of Total Dec-18 Arbitrage AUM: ₹ 0.57 trn Yearly net sales Quarterly net sales 2,608 757 1,173 Net Sales ( ₹ bn) 1,070 1,026 958 425 938 933 870 809 314 308 395 171 154 122 268 241 128 229 227 159 98 74 32 17 2 7 (1) (29) (113) (88) (144) (112) (486) (478) (1,359) (711) (744) FY13 FY14 FY15 FY16 FY17 FY18 FYTD19 4 ____________________ Q3FY18 Q2FY19 Q3FY19 Source: AMFI AUM excluding FOF – domestic; equity includes balanced funds; others include Liquid / Money Market, Gold ETFs, other ETFs and FOF – investing overseas
Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors (1)(2)(3) SIP Flows (1) MAAUM of B-15/B-30 (1)(2) 16% 17% 19% 15% 15% 25.4 18.8 21.1 24.4 16% 16% 54.8 77.5 79.8 10.1 11.3 13.5 41.4 47.2 66.1 70.9 39.2 B15 B30 MAAUM in ₹ bn (SIP contribution in ₹ bn) 80 (MAAUM ₹ trn) 77 20,743 20,457 71 18,442 62 15,487 11.3 11.2 (47%) (46%) 11.0 11.2 (49%) (49%) 43 11,365 10.1 37 10,185 (54%) 31 7,572 7.4 6.5 (55%) (54%) 13.0 5.0 12.9 4,265 11.7 11.4 (53%) (54%) (54%) 3,628 3,570 3,091 (51%) (51%) 8.5 2,187 1,892 (46%) 6.2 5.6 1,392 3.9 (45%) (46%) (46%) Apr-16 Sep-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Dec-18 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 T-30 B-30 Individual Investors Institutional Investors No. of SIP Accounts (mm) T-15 B-15 Share of B-15 MAAUM Individual Folios (mm) 5 ____________________ (1) Source: AMFI, (2) Based on monthly average AUM of the last month of the period; (3) Percentages in brackets denote % share of total
HDFC AMC at a glance 52% Assets Under Non-Equity Oriented 48% Equity-Oriented Assets Assets Management (1) ₹ 1,710 bn ₹ 1,580 bn ₹ 3,291 bn US$ 24.5 bn US$ 22.7 bn US$ 47.2 bn 8.9 mm ₹ 91.6 bn Live Accounts (1) PMS & SMA AUM (1) (3) 210 Branches (1)(2) ; 1,167 E mployees (1) 75k+ Empaneled ₹ 2,033 bn Distribution Partners Individual MAAUM (1) 6 ____________________ (1) As of Dec 31, 2018 / for Dec 2018 ; (2) Includes one representative office in Dubai; (3) Includes advisory mandates; (4) USD/INR conversion rate: ₹69.7675 Source: Internal
Total AUM and Market Share Total AUM (1) Market Share in Total AUM (2) ₹ billion * HDFC MF, Dec-2018 YoY 12 % 14.4% 3,291 2,933 2,920 2,926 Sep-2018 Dec-2017 2,306 HDFC MF, HDFC MF, 13.3% 13.8% 1,656 1,506 1,089 938 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 ____________________ 7 (1) Source: Internal *Due to sharp increase in AUM of liquid funds (2) Source: Internal, AMFI
Actively Managed Equity-oriented AUM and Market Share #1 Market Share in Actively Managed Equity-oriented Actively Managed Equity-oriented AUM (1) AUM (2) ₹ billion HDFC MF Dec-2018 16.0% YoY 3 % 1,535 1,496 1,476 1,449 Dec-2017 957 Sep-2018 HDFC MF HDFC MF 675 16.0% 17.1% 629 406 390 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 ____________________ (1) Source: Internal 8 (2) Source: AMFI, Internal Actively managed equity-oriented AUM excludes index and arbitrage funds from equity-oriented funds
AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1) Industry AUM by Segment (2) Dec-2018 Dec-2018 Others Others 0.3% 5.0% Liquid 23.9% Liquid 19.5% Equity Equity 44.8% 48.0% Debt Debt 27.8% 30.7% Dec-2017 Sep-2018 Dec-2017 Sep-2018 Others Others Others Others 0.2% 4.4% 3.6% 0.3% Liquid Liquid Liquid 10.8% 15.6% Liquid 13.5% 17.9% Equity Equity 44.1% 44.4% Equity Equity 51.9% Debt 53.0% Debt 36.0% 32.3% Debt Debt 38.8% 33.3% ____________________ (1) Source: Internal 9 (2) Source: AMFI
Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) (1) Individual MAAUM % of Total (1) YoY 10% YoY 17% 945 1,350 1,850 1,863 1,985 2,033 624 931 Mar-14 to Dec-18 CAGR: 28% 8.86 64.5% 8.62 62.2% 62.2% 61.8% 8.05 56.3% 7.56 56.0% 54.6% 53.6% 52.8% 6.15 5.55 5.14 4.44 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 Industry (2) Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 (Dec-18) Individual MAAUM (Rs bn) (1) Individual customer prefer equity-oriented schemes and stay invested for longer periods ____________________ (1) Source: Internal 10 (2) Source: AMFI
Most Preferred Choice of Individual Investors Individual Assets Market Share (Dec-18) Individual Assets Market Share (Sep-18) Individual Assets Market Share (Dec-17) 16.0% 14.7% 15.4% 13.9% 15.1% 14.0% 9.8% 9.9% 9.8% 9.5% 9.4% 9.4% 9.3% 9.1% 8.3% HDFC ICICI Pru ABSL Reliance SBI HDFC ICICI Pru ABSL SBI Reliance HDFC ICICI Pru ABSL Reliance SBI MF MF MF MF MF MF MF MF MF MF MF MF MF MF MF 11 Source: AMFI , based on monthly average AUM
Unique Investors Unique Investors- HDFC AMC vs MF Industry 28% 28% 27% 25.0 (Unique Investors in million) 19.1 20.0 18.4 15.7 15.0 10.0 5.2 5.1 4.3 5.0 0.0 Dec’17 Sep'18 Dec'18 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry 12 Source: CAMS. Note: Unique Investors include PANs/PEKRNs of all unit holders & Guardians
Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Long Tenure SIP Book (1) Strong Growth in Systematic Transactions ( ₹ mm) 3.36 77.1% 11,689 11,531 11,470 64.2% 10,698 6,768 5,494 Over 5 Years Over 10 Years 4,999 4,854 4,745 1.23 4,319 3,082 Strong and growing “Order Book” to provide predictable flows Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Dec-17 Mar-18 Sep-18 Dec-18 #mm systematic transactions ____________________ Source: Internal 13 (1) Based on tenure at the time of registration of all live SIPs during Dec-18
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