1/ What has helped HDFC AMC to grow this large?
The Trust associated with the HDFC brand.
A one-stop shop for individuals, families, corporates, and institutions when it comes to their investments.
The most profitable Mutual Fund.
2/ Promoters continue to own 73.9% in the company:
52.7% by HDFC Ltd & 21.2% by Standard Life investments.
3/ Numbers that matter
Rev up 3%
76% EBITDA margin
Pat up 5%
AUM up 24% to 3.95 Cr (43% Equity, 39% Debt, 16% Liquid) | PMS & big accounts at 9.7K Cr
53 lakh investors
1254 employees
Digital transactions: 82% of total
13.7% market share in MAAUM & 12.6% in total AUM
4/ Product Portfolio
In Equity, will increase the diversity in their investment style & approach: have faced the brunt of underperformance in the past | 24 schemes
Debt schemes were able to tide through the tough phase of defaults by a large NBFC & HFC, COVID-19 | 68 schemes
5/ Distribution (the 2nd most imp factor after trust)
Increasing service centers (ISCs) & distribution partners
69% of the AUM comes from the Top 5 cities:
Potential to ramp up in the next 100s of cities. This is also due to higher ticket size/person in the bigger cities.
6/ From the desk of the Chairman (Mr. Parekh)
- Explains why 🇮🇳's economy will get back on its growth trajectory
- MF industry reached an ATH of 30lk Cr in AUM: still underpenetrated in terms of AUM/GDP & AUM/deposits
- FPIs being the potential whale clients for Indian AMCs.
7/ From the desk of the new CEO (Mr. Munot)
- 1 in 4 investors in 🇮🇳 is invested with HDFC AMC
- Launched Dividend yield fund & Banking ETF during FY21
- To cover sector/specific themes, international markets, and passive strategies in the next few quarters
His Background 👇
8/ Digitisation is the key: it's important real estate
Multiple initiatives to reach clients: App to WhatsApp chatbot to online portals, E-KYC
The in-house platform caters to 60%+ of direct transactions, grew 21% | Mobile to web ratio now 1:2
9/ Marketing & ESG (a sophisticated form of marketing) Initiatives
- Targetting peeps from all walks of life to create a mindshare
- 1st and only one to date to launch a mutual fund dedicated to a social cause
- One of the youngest workforce with an avg age of 34 years
10/ Statistics to understand the Indian demographics better.
Healthy growth of mutual fund AUM in India: at 20% cagr for the last 5yrs.
11/ The biggest assets of an AMC: its employees:
Must be adequately paid in cash (up 5%) & Esops (Issued at a grant price of 2934/share: a 335 Cr Esop Policy)
12/ The Outlook for the Industry & strategy of HDFC AMC to capitalize on it
Need more clarity from Mr. Munot in the upcoming con calls.
A class company, nonetheless, in a massive growth industry.
End of Thread.
Have not been well versed with how the asset management industry works? No worries.
Key Terms in the industry explained 👇
HDFC AMC Q4FY21 results.
https://t.co/BSwIzovqAx
Catch up on what happened last year 😃
'Business Model: funds are raised from investors in different schemes & invested by the company while taking a small cut for the service known as the expense ratio.'
HDFC AMC FY20 Annual Report Takeaways.
https://t.co/4VOdd427mD