BOaRD OF DIReCtORS

Mr. Imtaiyazur Rahman

CEO & Whole Time Director

Ms. Dipali Hemant Sheth

Independent Director

Mr. Rajeev Kakar

Independent Director

Mr. Narasimhan Seshadri

Independent Director

Mr. Deepak Kumar Chatterjee

Independent Director

Ms. Jayashree Vaidhyanathan

Independent Director

Mr. Flemming Madsen

Non-Executive

Non-Independent Director

Mr. Dinesh Kumar Mehrotra

Non-Executive Chairman and

Independent Director

Mr. Edward Cage Bernard

Non-Executive

Non-Independent Director

BOARD OF DIRECTORS

2 ANNUAL REPORT 2020-21

corporate overview

Directors

Mr. Dinesh Kumar Mehrotra

Mr. Edward Cage Bernard

Mr. Flemming Madsen

Mr. Narasimhan Seshadri

Mr. Deepak Kumar Chatterjee

Mr. Rajeev Kakar

Ms. Dipali Hemant Sheth

Ms. Jayashree Vaidhyanathan

Mr. Imtaiyazur Rahman

Non-Executive Chairman

Mr. Dinesh Kumar Mehrotra

Chief Executive Ofcer

Mr. Imtaiyazur Rahman

Company Secretary and

Compliance Ofcer

Mr. Arvind Patkar

Chief Financial Ofcer

Mr. Surojit Saha

Auditors

M/s. G. D. Apte & Co. Chartered Accountants

Bankers

AXIS Bank Ltd.

Registered Ofce

UTI Tower, ‘Gn’ Block,

Bandra-Kurla Complex,

Bandra (East), Mumbai - 400 051

CORPORATE INFORMATION

UTI ASSET MANAGEMENT COMPANY LIMITED 3

Statutory reportS

financial statements

CONVICTION.

CAPABILITIES.

COMMITMENT.

For the last 56 years, at UTI, we

have been driven by our indomitable

conviction in our capabilities. We

have been propelled by our constant

commitment to create sustainable

value for our stakeholders. And in

this process, every action taken, every

step advanced and every outcome

of our decisions has been a result

of our conviction, capabilities and

commitment towards our goal. These

are the foundational stones that have

helped us build trust, brand name

and a rich legacy to reckon with.

Every action for achieving one’s

goal needs CONVICTION.

Every step of preparation to grow

needs CAPABILITIES.

Every challenge leading to results,

is backed by COMMITMENT.

So, read on to know more about how our Company’s exceptional resolve,

proficiency and dedication has translated into robust performance, prosperity

and progress as we endeavour to deliver on our promises.

4 ANNUAL REPORT 2020-21

corporate overview

About this Report

Basis of Reporting

This year, UTI Asset Management

Company Limited, marks the

first step towards our Integrated

Reporting <IR> journey. As one

of our principal communication

documents catering to our

stakeholders, this Report contains

comprehensive information on

our operational and financial

performances. It elaborates how

these influence our strategic

direction, resulting in our ability

to create sustainable value.

Our Approach to

Reporting

Through this Report, we aspire

to provide our stakeholders

with an overall depiction of the

organisation’s value creation

ability using both financial and

non-financial resources. The

Report provides insights into

our key strategies, operating

environment, material issues

emanating from our stakeholder

engagements and their respective

mitigation strategies, operating

risks and opportunities,

governance structure and our

approach towards long-term

sustainability.

Reporting Period,

Scope and Boundary

The reporting period for this

Integrated Report is 1April 2020

to 31 March 2021. It provides an

overview of our operations and

business development activities.

The Report, further covers

information on our business

segments in India and abroad

and associated activities that

enable short, medium, and long-

term value creation.

Reporting Standards

and Frameworks

In this Report, we have attempted

to bring in more transparency

and accountability through

additional disclosures and

information, following the guiding

principles of the International

Integrated Reporting Council

(IIRC). The other statutory reports,

including the Director’s Report,

Management Discussion and

Analysis (MD&A) section, the

Corporate Governance Report

and the Business Responsibility

Report, are in line with the

Companies Act, 2013 (and the

rules made thereunder), Securities

Exchange Board of India (Listing

Obligations and Disclosure

Requirements) Regulations, 2015,

and the prescribed Secretarial

Standards.

Navigation Guide

This Report has been broadly

divided into three sections

– Corporate Overview,

Statutory Report and Financial

Statements.

We have introduced a

reader-friendly navigation

panel for the readers to easily

identify and comprehend

the section that they are

reading at any given point.

The tab highlighted in BLUE

connotes the

current section that the reader

is looking at.

UTI ASSET MANAGEMENT COMPANY LIMITED 5

Statutory reportS

financial statements

CHAIRMAN’S COMMUNIQUÉ

Dear Shareholders,

It is encouraging that after the economic

impact felt by countries across the world due to

Covid-19 induced pandemic, most economies

are gradually recovering with cautious optimism.

Despite the adversities, this crisis has made

humanity come together, highlighting our

cumulative spirit and resilience. ‘Comeback from

Setback’ is possibly an appropriate articulation

of 2020–21.

What kept us engaged in 2020-21

To begin with, I would like to highlight a

landmark event, wherein we were successfully

listed on both the National Stock Exchange

(NSE) and the BSE. It marked the welcoming of

our valued retail and institutional shareholders

into the Company. The NSE further included

the equity shares of UTI AMC in the Nifty500

index w.e.f. from 1 March 2021. Besides, as

a testimony to the commitment of delivering

value to our stakeholders, we took the leap by

coming out with our first public Annual Report,

in the form of an Integrated Report <IR>.

As a Company, we have always believed in

constantly evolving. And this <IR> is a part

of our evolutionary journey. It is a step closer

towards our endeavour of maintaining integrity

and transparency in all our communications.

Our entry in this space is in line with the existing

global trends of reporting.

Last year, despite the challenges and the

subsequent business impact, we managed

to progress; determined and backed by our

commitment of delivering increasing value for

our stakeholders. We restructured our sales

and marketing functions, focussed more on

distribution & digital outreach, improved our

fund performance, incorporated ESG processes

and strengthened credit research processes.

Additionally, we put in place policies and

governance systems wherever required for a well-

run listed Company.

The pandemic made us rethink our priorities.

However, our conviction of becoming a more

robust investment-led organisation is something

we have never deviated from. We have been

progressively continuing to do so, supported by

our rich 55+ years’ legacy and lineage. The

same was reflected in the performance of the

Company during the year.

“Last year, despite the

challenges and the subsequent

business impacts, we managed

to progress; determined and

backed by our commitments of

delivering increasing value for

our stakeholders.

”

6 ANNUAL REPORT 2020-21

corporate overview

Industry developments

The capital markets crashed during the end

of March 2020, the sentiments of which

carried through early April 2020 – marking an

unprecedented downslide in recent memory

since the 2008 financial crisis. Despite the

initial uncertainties, the markets remained

buoyant, with increased participation from retail

and institutional investors. It is encouraging

that many international organisations like the

International Monetary Fund and the World Bank

have forecasted the GDP growth rates amongst

the highest across emerging economies like

ours. The strong rebound expected in private

consumption and investment growth is likely to

propel the economy forward.

Our response to Covid-19

Apart from strengthening ourselves as an

organisation, we focussed on three priorities

during the year — smoother business conduct,

safeguarding our employees while conducting

business and ensuring that we provide our

investors and partners with convenient digital

tools for them to transact seamlessly. We are

continuously building interfaces for fintech,

payments and other digital distribution platforms

to ensure excellent connectivity and a better

customer experience. We have implemented

digital KYC for virtual interaction with new

customers to ease our investors’ and partners’

investment journeys. These, together with many

other initiatives, would enable us smoothly

conduct our business without getting much

affected by the situation outside.

Outlook

Active Equity and Debt Funds will drive the

evolution of the MF industry. Despite the

cyclicality of flows, India is well and truly on track

to ensure the financialisation of savings across

the board while money is moving out of physical

assets. Moreover, mutual funds are still much

smaller than bank deposits, signifying more

room for growth. One of the emerging themes

in Equity Funds will be increasing awareness

about ESG Funds, passively managed ETFs and

index funds. Exchange Traded Funds (ETFs) and

Index Funds are yet to gain significant traction in

India. However, there is a positive trend towards

these funds, especially from the public sector

fund mandates and first-time investors investing

through fintechs and digital platforms.

Conclusion

On a concluding note, I would like to

express my gratitude towards all our valued

stakeholders. They have continuously supported

and encouraged our Company and the

Management, and we are deeply thankful

to them for the same. Your unwavering faith,

support and inspiration have helped us build a

value-creating organisation. I would also like to

express a special thanks to our employees. They

have demonstrated exceptional flexibility and

adaptability in the wake of Covid-19. Lastly, I

extend my best wishes for all shareholders and

their families during these testing times, wishing

everyone the best of health.

Warm regards,

Dinesh Kumar Mehrotra

Chairman

“We are continuously

building interfaces for

ntech, payments and

other digital distribution

platforms to ensure excellent

connectivity and a better

customer experience.

”

UTI ASSET MANAGEMENT COMPANY LIMITED 7

Statutory reportS

financial statements

CEO’S MESSAGE

“For us, a signicant

development during

2020-21 was the high

share of our gross sales

under Equity Funds. This

was visible in incremental

market share.

”

Dear Shareholders,

It gives me immense pleasure to present our Company’s

first Annual Report after its public offer and listing on the

Stock Exchanges. The listing was a momentous occasion

in the illustrious history of UTI and I would like to take this

opportunity to thank the Government of India, SEBI and the

Shareholders for their support in the successful completion of

the IPO.

The past year was undoubtedly challenging in many ways.

We witnessed several developments that affected business

and the macroeconomic environment across countries.

The shared experience of combating the Covid-19 induced

pandemic has strengthened multilateralism in global trade

relations. Despite the uncertainties around renewed waves and

new variants of the virus, the International Monetary Fund (IMF)

expects the global economy to grow by 6% in 2021, up by

30 bps relative to their previous forecast. With the pandemic

emerging as a critical risk during March 2020, the major

benchmark indices viz. SENSEX and Nifty50 fell to 29,468 and

8,597, respectively, as on 31 March 2020. The Equity and

Hybrid category funds saw significant erosion in the market

value due to correction in the equity market. The financial year

2020-21 began amidst challenges but ended with optimism.

The BSE Sensex hit a record high during 2020-21 on 16

February 2021 to cross the 52,000 mark – a testimony to the

confidence of investors in India’s growth story. The economic

initiatives and welfare measures of the Government of India

along with large scale vaccination programmes also helped in

boosting investor sentiments.

Journey of MF industry and UTI AMC

The Indian MF industry, recorded a healthy 18% CAGR for

the decade, registering more than five-fold growth in AUM

from INR 5,92,250 crore as on 31March 2011 to INR

31,42,764 crore as on 31March 2021. For the year 2020-

21 itself, the industry grew by 41%, along with increasing

geographical spread and broadening of the investor base.

For us, a significant development during 2020-21 was the

high share of our gross sales under Equity Funds. This was

visible in incremental market share, even though it was

impacted by net outflow for the industry and also maturity of

closed-ended schemes. During the year, UTI Mutual Fund

added 5.52 lakh new SIP accounts, a jump of over 62%

compared to the previous year.

Overall, we witnessed good equity performance,

stabilisation and turnaround in Income Fund performance,

regained lost market share, added investor folios, expanded

distribution through banks, fintech, and increased digital

onboarding.

I am happy to inform you that we have continued to focus

on the smaller cities and towns of the country. As a result,

as of March 2021, 23% of our total MAAUM (Monthly

Average Assets Under Management) came from B-30 cities

compared to 16% for the industry. We will continue to

maintain our focus in these cities.

8 ANNUAL REPORT 2020-21

corporate overview

Our Group companies

Our AUM, other than domestic mutual funds, reported

growth of 18% Y-o-Y, amounting to INR 9.78 lakh crore as

on 31 March 2021 as compared to INR 8.28 lakh crore as

of 31 March 2020. The growth was led by UTI International

(70% Y-o-Y ), which looks after the offshore business of

UTI AMC. UTI International, with its offices in Singapore,

London, and Dubai, has investors spread across 35

countries and is mainly focussed on investors in Asia, Europe

and Middle East. During the year, the International business

saw significant development, growing by ~70% to USD

3.65 Billion in March 2021 from USD 2.09 Billion in March

2020. The growth has mainly come in our India Dynamic

Equity Fund, which has crossed an AUM of USD 820 Million

and is the 10th largest Indian fund amongst UCITS funds

and J Safra Sarasin Responsible India Fund which has

mobilised USD 125 Million in 6 months and is most likely

Europe’s first ESG compliant India fund. Given our track

record and relationships with investors and distributors, we

are confident of substantial growth in this business.

UTI RSL, manages the pension assets under the NPS of the

PFRDA. It has a market share of 28.75% in the NPS. During

the last one year, we have recorded strong growth of 36% in

the business with the AUM growing to INR 1,66,210 crore

from INR 1,22,201 crore.

UTI Capital Private Ltd. is focussed on growing the private

capital investment management business of UTI AMC.

During the year, backed by the success of the UTI Structured

Debt Opportunities Fund I, we launched UTI Structured Debt

Opportunities Fund II in the month of September 2020.

Alternative Investment Funds (AIF) business in India is still in

the growth phase and we feel that with our strong capability

in AIFs, we will be able to substantially grow this business.

Momentum in digitalisation

It was a year when business houses realised the criticality

of digitalisation and the need to adapt to remote ways

of transacting. At UTI AMC, we could transition rapidly

since we have been implementing a comprehensive digital

transformation programme to build our organisation’s

efficacy, capacity, resilience and cost-effectiveness. We took

multiple initiatives with respect to application modernisation,

hybrid cloud architecture adoption, business process

digitalisation, enterprise data platform adoption and

cybersecurity enhancement. We also have a Board level

Digital Transformation Committee.

We realise that data analytics and our enterprise data

platform will enhance our customers’ experience further,

thereby increasing customer loyalty and retention. With a

strong digital framework, we are deploying our resources

to capture growth from the digital strategy. Our information

security policies help us to ensure the confidentiality, integrity

and availability of information adequately.

We implemented the next generation front-end trading

system, Bloomberg Asset and Investment Manager. The

new state-of-the-art trading system will help us improve our

trade execution by providing a more responsive, agile and

efficient interface for our dealing operations, with simplified

risk and compliance monitoring. This will also help us

reduce our tracking error and costs.

Highlights of performance in 2020-21

AUM and Market Share

In terms of the AUM growth across MFs, PMS and Advisory

services, we witnessed a healthy growth to touch INR 11.61

lakh crore, compared to INR 9.80 lakh crore recorded in the

corresponding period last year. In our Mutual Fund QAAUM,

we registered a growth of 20.7% compared to the industry

growth of 18.8%. As of 31 March 2021, we recorded a AUM

of INR 7.84 lakh crore under PMS, INR 1.66 lakh crore under

Retirement Solutions, INR 1,576 crore under UTI Capital, and

INR 26,822 crore under UTI International.

Within domestic mutual funds, AUM for the quarter in

respect of Equity Funds, including ETFs/Index funds,

increased by 46% Q-o-Q to INR 93,331crore as on 31

March 2021. This was primarily driven by passive equity

funds (69% Q-o-Q increase in Quarterly Average AUM

as on 31 March 2021). Overall, this performance resulted

in the gain of market share from 5.56% to 5.69% during

the Q4 of 2020-21. UTI Mutual Fund captured 6% of the

overall industry net inflow.

Operational highlights

Our brand recognition and goodwill among our investors

and partners assisted in the following operational

developments during the year:

We manage 138 (excluding 10 segregated portfolio)

domestic mutual fund schemes, comprising Equity,

Balanced/Hybrid, Income, ETFs/Index, Liquid and Money

Market Funds as of 31 March 2021.

With ~23% of our AUM, we continue to have a high

concentration of MAAUM in B30 markets.

As of 31 March 2021, our distribution network included

- 163 UTI Financial Centres (UFCs), 278 Business

Development Associates (BDAs) and Chief Agents (CAs)

and 39 Official Points of Acceptance (OPAs). Apart

from this, we have partnered with approximately 56,600

Mutual Fund Distributors (MFDs), PSU & Private Banks,

National & Regional Distributors and fintechs.

UTI ASSET MANAGEMENT COMPANY LIMITED 9

Statutory reportS

financial statements

As of 31 March 2021, UTI MF offered 138 Schemes/

Plans (excluding 10 segregated portfolios), out of which

24 were Equity Funds; 98 were Debt Funds; 1 Liquid

Fund; 9 were ETFs/Index Funds, and 6 were Hybrid

Funds.

Our Monthly Gross SIP inflow increased by 37% Y-o-Y

basis to INR 339 crore as of March 2021 from INR 247

crore as of March 2020.

With Total Live Folios amounting to 1.1 crore as on 31

March 2021, our client base accounted for 11% of the

total folios managed by the Indian MF industry.

We had the lowest complaints against folios at 0.0006%

as compared to other AMC players in the industry as of

31 March 2021 (Source: AMFI).

Enhancing brand & visibility

We endeavoured to promote our brand prominence through

investor segmentation. During the year, we launched our

media campaign which reached 2 crore+ people. We

started a financial literacy programme for college students

and promoted campaigns like Swatantra, Millenial Money

Matters, Equal Rights Equal Responsibilities, and Expert Se

Poocho, among others. We also launched our marquee

event named ‘The Colloquium’ on 18 March 2021 with the

theme ‘Investing in the post pandemic world’.

Product development

During the year, we launched UTI Small Cap Fund, UTI

Bank ETF, and UTI Nifty 200 Momentum 30 Index Funds.

We are planning to launch more funds during the coming

financial year after assessing the market conditions and

based on the product gaps in our portfolio.

Financial highlights

For the year ended March 2021, we recorded a consolidated

Net Profit of INR 494 crore as against INR 271 crore for

2019-20, showing a Y-o-Y growth of 82%. During the year,

we undertook stringent cost control measures to manage

our costs efficiently. Along with improvement in our PAT

margins, our Return on Equity also reached a three-year

high, touching 15% for 2020-21.

Enhancing investment management and risk

mitigation

Our Fixed Income team has significantly enhanced its

processes, including implementation of Early Warning

System while strengthening the Research team. We also

strengthened our risk management capabilities including

technology enhancement, to mitigate risks and enable

sustained growth of the Company.

ESG practices

Considering the significance of ESG parameters, we have

proactively initiated measures for incorporating ESG aspects

in our business strategy and for setting up a Board level ESG

Committee.

Developing talent of our people

We believe that the skills and talents of our employees

are critical for our success and reliable performance.

We continued focussing on training and development,

empowering our people and bringing inclusion. The

HR team is focussed on improving the work culture and

conducting learning engagement initiatives, benchmarking

compensation, and long term incentive plan, among others.

With the view to building a young and vibrant organisation,

we onboarded 55 trainees during the year and are looking

to hire fresh graduates from colleges across the country.

In order to attract and retain talent, we have an Employee

Stock Option Scheme.

Covid-19 appropriate protocols

As soon as the pandemic broke out, we set up a core

internal team to monitor and address the situation, took

measures for smooth functioning of business with various

customer centric measures, adopted digital ways of working,

provided requisite technological support, adhered to

Government guidelines and initiated outreach programmes.

We continued to focus on delivering stress free services to

our investors during these trying times and took all possible

steps to ensure smooth and efficient business operations.

We undertook measures to ensure our employees protection

& good health and facilitated a seamless transition to work

“Going forward, we are

focussed on delivering

consistent growth in terms

of revenue, protability,

market share, and

fund performance with

emphasis on high-yielding

products – like equity and

xed income.”

10 ANNUAL REPORT 2020-21

corporate overview

from home, supported with processes and tools for remote

working, communication and collaboration. While the crisis

tested the teams’ resilience, it also helped sharpen our value

proposition to our investors and partners.

Future business outlook

Going forward, we are focussed on delivering consistent

growth in terms of revenue, profitability, market share, and

fund performance with emphasis on high-yielding products –

like equity and fixed income. Our broad distribution network

facilitates us to reach out to individual investors, particularly

in B30 cities and other underserved areas, where we already

have a stronghold. We will continue to strengthen our

relationship with our institutional and PSU clients. Alongside,

we will also particularly focus on developing relationships

with MSME and SME institutional clients.

We are paying particular attention to growing our group

AUM by accessing new markets, marketing our international

funds, Alternative Investment Funds (AIFs) and Portfolio

Management Services (PMS) products. The EPFO, CMPFO

and ESIC mandates have helped enhance our credibility

and we are leveraging our track record to pursue other

opportunities.

The Retirement Solutions industry is in a nascent stage

with a small percentage of the working population being

under pension and social security schemes. There is a vast

potential for the industry. It is expected that within the next

10 years, Pension AUM is likely to cross Mutual Fund AUM,

increasing our business opportunity.

Overall, the MF industry is undergoing a fast transformation

today. However, with a low AUM to GDP ratio and overall

penetration as a percentage of GDP, India still lags behind

countries like the US, Canada, France, and Brazil. The MF

industry is still largely untapped. There are multiple growth

drivers like overall economic growth, a growing investor

base, higher disposable income levels, investable household

surplus, higher awareness levels, and a favourable

demography. These drivers have immense potential and

are likely to propel growth going forward. The AMCs with a

strong retail brand, large distributor network, and significant

presence in B30 cities, will have the advantage of growing

faster. UTI AMC is well positioned on all these fronts.

Striving to make a difference

Our consistent focus has been on our investors and

stakeholders. We have been working relentlessly to enhance

value for them by implementing relevant strategies, building

a stronger brand which is known for its integrity and

innovation. The listing of UTI AMC has brought in enhanced

governance practices & disclosures and it is our endeavour

to transform the organisation as one of the finest investment

institutions, with highly skilled & strengthened investment

team, committed to the welfare of all our stakeholders.

Our business strategies are aligned to increase brand

visibility, realise the potential opportunities, meet emerging

challenges and work towards sustained growth. We

endeavour to build the talent of our human resources, offer

differentiated products and services and achieve excellence

in all our operations. We strive to enable our investors

to achieve their long-term financial goals. We aspire to

provide them the best-in-class services to ensure a smooth

investment journey for them. I am thankful to the Board of

UTI AMC as well as the Regulators for all their support in

our efforts.

Conclusion

On a closing note, I am pleased to inform you that the

Board of Directors (subject to the approval of shareholders)

has approved a final dividend of INR 17 per share for

2020-21 which is approximately 61% of the PAT.

On behalf of the entire Board of Directors and the

management team, I would like to thank you for your

continued trust, guidance and support to us.

With warm regards,

Imtaiyazur Rahman

Chief Executive Ofcer & Whole-Time Director

UTI ASSET MANAGEMENT COMPANY LIMITED 11

Statutory reportS

financial statements

AN INTRODUCTION TO

UTI ASSET MANAGEMENT

COMPANY LIMITED

UTI Asset Management Company (hereinafter

referred to as ‘UTI AMC’, ‘the Company’, ‘we’)

is one of the largest asset management company

(AMC) in India, in terms of Total Assets Under

Management (AUM)*. It is also the eighth

largest AMC in terms of mutual fund Quarterly

Average Assets Under Management (QAAUM)

as of 31March 2021.

UTI AMC is a team of one

of the largest professionally

managed money managers. Our

investments are spread across

Indian equities, fixed income,

private equity and private debt.

Our portfolio includes the

management of the domestic

mutual funds of UTI Mutual

Fund. We provide Portfolio

Management Services (PMS)

to institutional clients and high

net worth individuals (HNIs),

and manage retirement funds,

offshore funds and alternative

investment funds as well. We

cater to a diverse group of

individual and institutional

investors through these wide

varieties of funds and services.

Back in 1964, we were the first

to establish mutual fund in India,

and since then, we have built

a strong presence in the AMC

space. Today, we enjoy a rich

legacy and brand recognition.

Our proven track record of over 55 years

speaks volume of the credibility we have

earned in the mutual fund (MF) industry

through our conviction, capabilities and

commitment.

The large structural growth opportunity

prevalent in the Indian MF industry today

is more pronounced than ever. Against this

backdrop, our size, diverse client base and

strong product portfolio, along with our

pan-India reach, especially our substantial

presence in B30 cities, extensive

distribution network and widely recognised

brand, bodes well, for us to capitalise on

future growth prospects of the Indian MF

industry. With an international presence of

more than 20 years, we have established

ourselves with the eminence of being

an Indian AMC with an international

footprint.

*Including Quarterly Average AUM of UTI Mutual

Fund, and Closing AUMs of Portfolio Management

Services, UTI International, UTI Retirement

Solutions Ltd. and UTI Capital Ltd.

12 ANNUAL REPORT 2020-21

corporate overview

INR11,61,256

Total AUM

CRORE

INR1,82,853

Domestic MF AUM

CRORE

278

Business Development

Associates (BDAs)/Chief

Agents (CAs)

Mutual Fund Distributors

56,600

1,474

Employee Strength

Live Folios

1.1

CRORE

694

Districts

present in

163

No. of UTI Financial

Centres (UFCs) in India

Our Reputation

Indian Mutual

Fund Company

55+

Years of

Experience

138

No. of Schemes Managed

(as on 31 March 2021) excluding

10 segregated portfolios

UTI ASSET MANAGEMENT COMPANY LIMITED 13

Statutory reportS

financial statements

Vision

To be the most preferred

Mutual Fund

Mission

To be the most trusted and admired brand for

all stakeholders

To be the most efficient wealth manager with a

global presence

To deliver best-in-class customer service

To be the most preferred employer

To create innovative products that maximise ROI

To be a socially responsible corporation that

focuses on well-being of all

Organisational Structure

UTI

International

Ltd.

Manager for

International

(Offshore)

Funds

UTI Venture

Fund

Management

Co. Ltd.

Manager

for Venture

Funds

UTI

Retirement

Solutions

Ltd.

Manager

for Pension

Funds

UTI Capital

Pvt. Ltd.

Manager

for Private

Equity &

Debt Funds

Investment

Manager to

UTI Mutual

Fund

100%

Subsidiaries

Support

Services to

SUUTI

Investment

Manager

to Offshore

Funds

PMS (includes

EPFO and

Postal Life

Funds)

UTI AMC

Ltd.

14 ANNUAL REPORT 2020-21

corporate overview

Shareholding Pattern

23.00%

T. Rowe Price

International

Ltd.

15.24%

Punjab

National

Bank9.99%

State Bank

of India

9.99%

Life Insurance

Corporation

of India

9.99%

Bank of Baroda

7.88%

Retail

Shareholders

15.92%

Mutual

Funds

5.36%

Foreign

Portfolio

Investors

0.78%

Alternative

Investment Funds

1.85%

Others

UTI ASSET MANAGEMENT COMPANY LIMITED 15

Statutory reportS

financial statements

Our Subsidiaries

UTI International Limited

The offshore interests of UTI AMC are managed

by UTI International Limited (UTI International), a

100% subsidiary of UTI AMC. UTI International was

incorporated as a limited liability company under the

laws of Guernsey on 30 January 1996. It is regulated

by the Guernsey Financial Services Commission.

UTI International comprises of two subsidiary entities:

UTI Investment Management Company Mauritius

Limited, Mauritius, regulated by Financial Services

Commission of Mauritius

UTI International (Singapore) Pte Ltd (UTIIS) which

holds a full Capital Market Services license and is

regulated by the Monetary Authority of Singapore

In addition, UTI International has a branch office

in London, regulated by the Financial Conduct

Authority of UK and UTIIS has a branch office in

Dubai, located in DIFC and is regulated by the Dubai

Financial Services Authority. The offshore business

has 26 employees based across the three offices

located in Singapore, Dubai and London. From these

offices, it caters to Institutional (B2B) and Distribution

(B2B2C) clients in Asia, Europe and Middle East.

This company is chiefly engaged in the Investment

Management of Equity and Debt Funds as

authorised by its Memorandum of Incorporation.

UTI International’s products are primarily managed

by the Investment team at UTI AMC – across Equity,

Fixed Income and Private Debt. Additionally, it also

manages some opportunistic yield products like Fixed

Maturity Plans (FMPs) for international clients. The

company’s most substantial growth has come from

Europe, particularly in the All Cap Equity fund. It also

manages fund structures in the following jurisdictions

to meet varying client demands:

Ireland (UCITS)

Singapore

Mauritius

Cayman Islands

Dubai (DIFC)

The Offshore business has clients spread across 35

countries and are primarily institutions – Pension,

Insurance, Banks and Asset Managers.

USD 3.65

BILLION

Total AUM (as of 31 March 2021)

(INR 26,822 CRORE)

Growing by ~70% (from USD 2.09 Billion

in March 2020) (INR 15,765 crore)

GBP 22.53

MILLION

Gross Income

for 2020-21against GBP 1.31 Million

in 2019-20

GBP 14.65

MILLION

Net Prot

for 2020-21against a net loss of GBP 5.77 Million

in 2019-20

Mr. Ajay Tyagi

Fund Manager –

International Equity and

Domestic Equity Funds

16 ANNUAL REPORT 2020-21

corporate overview

UTI Retirement Solutions

Limited

UTI Retirement Solutions Limited (UTI RSL) was

incorporated by UTI AMC on 14 December

2007 under the Companies Act 1956, for

managing the pension assets under the National

Pension System (NPS). It is a 100% subsidiary of

UTI AMC.

The company was appointed by Pension Fund

Regulatory & Development Authority (PFRDA) as

one of the Pension Fund Managers to manage

the Pension Assets/Funds of Central Government

Employees, State Government Employees and

the Private Sector NPS Subscribers under the

National Pension System (NPS). It started its

operations from 1 April 2008.

This company was amongst the first set of

companies, along with LIC and SBI, established

for managing Pension Funds under NPS. As a

result, it enjoys the first-mover’s advantage in the

pension sector.

The company’s Assets Under Management

(AUM) have grown rapidly since the start of its

operations. It has strong experience as a Fund

House to run and manage Retirement Plans that

have given reasonable market-related returns.

UTI RSL draws its expertise of Fund Management

activity from its parent company.

28.75%

Overall Market Share under

National Pension System

(NPS)

INR19.63

CRORE

Gross Income

for 2020-21against INR 14.25 crore

in 2019-20

INR3.78

CRORE

Net Prot

for 2020-21against INR 4.36 crore

in 2019-20

INR1,66,210

Total AUM

CRORE

(as of 31 March 2021)

UTI ASSET MANAGEMENT COMPANY LIMITED 17

Statutory reportS

financial statements

UTI Venture Funds Management

Company Private Limited

UTI Venture Funds Management Company

Private Limited (UTI VF) was incorporated on 27

March 2001, under the Companies Act, 1956, at

Bengaluru, Karnataka. The company is registered

with SEBI as a Venture Fund Management Company.

It has a subsidiary, UTI Private Equity Limited,

engaged in Investment Holding as authorised by the

Financial Services Commission. However, UTI Private

Equity Limited, Mauritius is under the process of

winding up under section 309 (1)(d) of Companies

Act, 2001.

The principal business of UTI VF is to manage

venture capital funds and private equity funds. The

company has been creating value for its portfolio

companies by providing industry knowledge, access

to local talent and through its business network in

the Indian and overseas markets.

INR 1.30

CRORE

Net Prot

for the year ended 31 March 2021, as against

a Net loss of INR 0.47 crore in 2019 - 20

INR 2.19

CRORE

Gross Income

for 2020-21against INR 0.74 crore

in 2019-20

18 ANNUAL REPORT 2020-21

corporate overview

UTI Capital Private Limited

UTI Capital Private Limited (UTI CPL) was incorporated on

13 May 2011, under the Companies Act, 1956, at Mumbai,

Maharashtra. It is a 100% subsidiary of UTI AMC and is

mandated to manage and grow Private Capital investment

management business. As of 31 March 2021, UTI CPL has four

funds under management or advisory, which are:

UTI Structured Debt Opportunities Fund I

– Launched in August 2017 and final close in May 2019

– Total commitments of INR 695 crore (In Commitment Period)

UTI Structured Debt Opportunities Fund II

– Launched in September 2020

– Total commitments of INR 447 crore (Final Close Not Yet

Announced)

India Infrastructure Development Fund

- Total assets of INR 205 crore (In Exit Period)

Pragati India Fund

- Total assets of INR 27 crore (In Exit Period)

The Audited Statements of Accounts of the subsidiary companies, together with the Reports of their Directors and

Auditors, for the period ended on 31 March 2021, are attached to this Annual Report. None of the companies

became or ceased to be subsidiary during the year 2020-21. The Company did not have any Associate

or Joint Venture Company as on 31 March 2021.

INR 1,576

Total AUM

CRORE

INR 0.18

CRORE

Net Prot

for 2020-21against a Net Loss of

INR 1.43 crore in 2019-20

INR 9.16

CRORE

Gross Income

for 2020-21 against INR 8.04 crore

in 2019-20

UTI ASSET MANAGEMENT COMPANY LIMITED 19

Statutory reportS

financial statements

CORPORATE HISTORY

AND MILESTONES

1971 19861964 2002 2003 2006

UTI established

by the

Government of

India under the

UTI Act, Passed

in 1963

Launched First-

ever Unit-Linked

Insurance Plan

(ULIP)

Launched

India’s first pure

Equity-oriented

Fund called

Master Share;

Mutual Fund

became the

part of Indian

Lexicon with UTI

Master Share

Registered

UTI Mutual

Fund with SEBI

under the SEBI

Mutual Funds

Regulations

Launched

Axel Portfolio

Management

Services

Established UTI

International

Singapore

(Private)

Limited as a

Joint Venture

Incorporated

UTI Asset

Management

Company Limited

2004

20 ANNUAL REPORT 2020-21

corporate overview

2007 2010 2011 2017 2019 2020

Incorporated

UTI Retirement

Solutions Ltd.

with UTI AMC

as its Sponsor

Launched

Investor

Education

Initiative – UTI

Swantantra

Incorporated

UTI Capital

Private Limited

UTI’s PMS

appointed as

one of the two

Fund Managers

of the EPFO

Corpus

UTI RSL’s AUM

crossed INR

1,00,000 crore

Launched

Alternative

Investment

Fund (AIF) - UTI

Structured Debt

Opportunities

Fund

Launched

Digi-invest

Campaign

Launched

IPO and got

listed on NSE

(National Stock

Exchange) and

BSE successfully

UTI AMC

appointed as

one of the two

fund managers

of the Postal

Life Insurance

Corpus; UTI

Mutual Fund

Investor Folios

crossed 1crore

2009

UTI ASSET MANAGEMENT COMPANY LIMITED 21

Statutory reportS

financial statements

COMMITTED TO CREATING

ROBUST VALUE FOR

SHAREHOLDERS

At UTI AMC, we have always

endeavoured to create healthy

returns for our shareholders. And

to improve shareholders’ value,

we believe it is essential to build

a resilient business model and

earn higher protability through

ethical business practices.

We are one of the pioneers of the Indian MF industry. We pride ourselves

on our long-term track record of product and solution innovations that

endeavour to deliver consistent and stable returns across economic

cycles, eventually driving AUM growth.

We have, to our credit, launched many funds in the past, which were first

in their respective categories in India. Also, five of our funds have over

25 years of track record.

Stable Investment Performance

Over decades, we have been delivering consistent and stable investment performance. Our investment philosophy aims

to provide investment outperformance against benchmarks and competitors. Our rigorous investment research processes

consider both qualitative and quantitative factors. These are further led by rating systems and proprietary research

methodologies emphasising risk mitigation and drive performance through robust investment decisions.

India’s 1st

Equity-

oriented

Fund — UTI

Mastershare

Unit Scheme

India’s

Largest

Dividend

Yield Fund —

UTI Dividend

Yield Fund

India’s 1st

Tax Saving

cum

Insurance

Fund —

UTI ULIP

India’s

Largest

Non-ETF

Index Fund

— UTI Nifty

Index Fund

22 ANNUAL REPORT 2020-21

corporate overview

Performance Analysis

Despite the severe headwinds faced on account of Covid-19 during 2020-21, we made significant progress on delivering

against our set targets.

Protability

Our strategy entails focussing on high-yielding products

like Equity and Fixed Income through active fund

management for achieving higher profitability. Thus, we

have all the desired levers to move ahead and capture

the profitable assets in the market. At the same time,

we have also undertaken many initiatives to bring down

our costs through investments in technology, process

improvements and employee training to improve our

bottom-line overall.

Inputs Outcomes Capitals Impacted Stakeholders Impacted

INR 3,226 crore

Consolidated

Networth

Zero Debt

INR 494 crore Profit after Tax

16.50% Return on Capital

Employed

15% Return on Equity

(Consolidated)

INR 38.97 Earnings Per Share

43.62% Dividend Payout Ratio

(Consolidated)

61.28% Dividend Payout Ratio

(Standalone)

Human

Service

Financial

Shareholders

Employees

In order to create robust value for our shareholders, we have constantly been improving our protability. As we

advance, the AUM size, product mix, and our improved cost structures, adopted to manage on an automated

and integrated basis, will drive our enhanced protability. We have also been bringing down our costs while

consciously increasing the proportion of more protable products. With a substantial contribution coming in

from B30 cities in higher fee products like Domestic Active Equity and Hybrid Funds, we are likely to improve our

protability in the future while enhancing shareholder value.

Hence, to achieve profitable growth, we focus on the

following:

Increasing our market share in high-yielding Equity,

Hybrid and Debt products

Bringing in new investors into UTI fold

Focussing on underpenetrated markets

Growing other lines of business like PMS, AIFs,

International and Retirement businesses to contribute

significant revenue to the overall business

Matrix 2019-20 2020-21 Percentage/bps Growth

Revenue 889.96 1,198.63 34.68%

PAT 271.46 494.14 82.03%

PAT Margins 30% 41% 1,100 bps

ROE 10% 15% 500 bps

Total AUM 9,79,847 11,61,256 18.51%

Equity-oriented AUM 79,376 1,28,200 61.51%

Hybrid-oriented AUM 62,201 70,726 13.70%

Debt-oriented AUM 8,38,270 9,62,130 14.78%

*PAT: Profit After Tax *ROE: Return on Equity *AUM: Assets Under Management

(INR in crore except per equity share data)

UTI ASSET MANAGEMENT COMPANY LIMITED 23

Statutory reportS

financial statements

A COMMITTED PURE-PLAY

INDEPENDENT ASSET

MANAGER WITH POWER OF

BRAND AND TRUST

UTI AMC is a name synonymous with trust. Our 55+

years rich legacy has helped us establish ourselves as

a leading and pioneering brand in the Indian Mutual

Fund industry.

Our independence and focus on Asset Management business differentiates us from many of our competitors who are part

of the diversified financial institutions which carry out varied activities. Our in-house analysts provide independent and

objective analysis to our investment professionals. We believe that there is a likelihood of fewer conflicts of interest with other

business lines through this independent focus compared to our competitors. Besides, our stronger relations with a broad

set of intermediaries and in-house skills allow us to remain at the forefront. Despite not having a bank or a big financial

conglomerate as a part of our business group, we enjoy excellent relationships with leading private and foreign banking

partners. We share cordial relationships with the banking partners’ distribution teams, national distributors, Mutual Fund

Distributors (MFDs) along with other fintechs and payment platforms.

Pure-play AMC

Ability to form stronger

and deeper relationships

with intermediaries as

non-competing

Strong focus on AMC

business with particular

in-house skills towards

fund accounting and boosting

efciencies and cost effectiveness

24 ANNUAL REPORT 2020-21

corporate overview

Inputs Outcomes Capitals Impacted Stakeholders Impacted

55+ Years’ experience

INR 11,61,256

Total AUM

Strong know-how

Credibility

138 Mutual Fund

schemes managed

1.10 crore Live folios

11% of client base managed

as a proportion of the Indian

MF industry

Financial

Service

Relationship

Shareholders

Customers

Our national footprint, coupled with an extensive presence in many metropolitan and rural areas, and

established presence in B30 cities, has allowed us to leverage our brand name and also helped us create

a reputation for ourselves. We have constantly endeavoured to build on this reputation by adopting

appropriate strategies and recruiting the right people for the right jobs.

We will continue to leverage our existing strengths of brand awareness, reach, product diversity,

and strong relationships. As we do this, we will also continue serving a diverse portfolio of funds

and services. This balanced approach enables us to operate through market cycles. It reinforces

our ability to cater to our investors’ requirements and also helps reduce concentration risks for

our business, while leveraging our competencies. This ability will help us gain a higher market

share eventually.

Reputation

For service,

integrity and

innovative

solutions

Investor

Condence

Ability to provide

consistent quality

services

Recruitment

Recruit and

retain skilled

professionals

In the past, we have been named amongst the top five preferred industry brands as per the Nielsen

Mutual Fund Studies for the period December 2015 to January 2016 and for the month of September

2017 – a clear testimony for our brand.

UTI ASSET MANAGEMENT COMPANY LIMITED 25

Statutory reportS

financial statements

DRIVEN BY CONVICTION OF

EXPERIENCE AND EXPERTISE

We are a professionally managed

Asset Management Company

backed by an eminent Board of

Directors and a vastly experienced

senior management team.

UTI AMC, as a team, is guided by the vision of a senior management team

with profound market knowledge and experience. The know-how of our senior

management team helps us identify and capitalise on strategic opportunities

and respond to the changing industry, macroeconomic and regulatory dynamics

in India. Our track record of managing money over multiple market cycles is

a true testimony to the same. We follow a disciplined and rigorous investment

process, strongly supported by our in-house fundamental research, a data-

based framework for portfolio construction and internal risk management

processes.

Our investment performance is backed by our experienced and professional

44-member investment team, with a 700+ years of cumulative experience

across Domestic Mutual Fund, PMS, Retirement Solutions, Alternate Business

and Offshore businesses.

Team Strength

Domestic Equity

MF Management

Team

Domestic Fixed

Income MF Team

RSL Investment

Team

PMS Investment

Team

Offshore Fund

Management

Team

Investment

Team

26 ANNUAL REPORT 2020-21

corporate overview

Inputs Outcomes Capitals Impacted Stakeholders Impacted

Fund management team

700+ Cumulative years

of experience

Different skill sets and

backgrounds

Periodic review of fund

performance

Robust fund management

strategies

Better and faster decision-

making

Service

Intellectual

Customers

Employees

We have various protocols to refine the performance review processes for our fund managers and research analysts. This

helps us optimise the performance of the team and incorporate best practices. Our rigorous investment research process

takes into account both qualitative and quantitative factors. The process includes rating systems and proprietary research

methodologies that emphasise risk and performance through comprehensive review procedures, driving investment

decisions. We have also implemented a next-generation front-end trading system, Bloomberg Asset and Investment Manager.

This implementation will help us improve our trade execution by providing a more responsive, agile and efficient interface for

our dealing operations, thereby, helping us simplify risks and compliance monitoring.

In our endeavour to deliver investment outperformance against benchmarks and competitors, we follow a disciplined and

rigorous investment management process:

Going ahead, through our focus on better talent recognition, we intend to invest in the human and organisational

resources needed to increase the number of companies covered by our in-house research team. We strive to

strengthen our fund strategies further. This will enable us to increase our AUM and facilitate new product launches.

Approach

Yield and duration management as key objective

Achieved through a combination of top-down and

bottom-up approach

Research process

Takes qualitative and quantitative factors into

account along with proprietary ratings and research

methodologies

Arrives at a universe of issuers in which to invest

Construct

Portfolio constructed in the light of investment

objectives and investment strategies

Emphasis on risk, diversification and performance

Review

Comprehensive review mechanism

Supports the investment and divestment decisions of

fund managers

Equity Investment

Process

Fixed Income

Investment Process

Investment process

In-house research team

Proprietary framework - qualitative and quantitative

Portfolio construction data framework

Diversity

Diversity of styles with discipline

Bound by the investment process

Risk guidelines

Team culture

Experienced and professional team

Emphasis on collaboration

Interactive process – formal and informal

Performance measurement

Based on the performance of the fund against

benchmark and peers over different periods

UTI ASSET MANAGEMENT COMPANY LIMITED 27

Statutory reportS

financial statements

CAPABILITIES STRENGTHENED

BY WIDE GEOGRAPHICAL

PRESENCE AND MULTI-CHANNEL

DISTRIBUTION NETWORK

At UTI AMC, we understand

that a strong distribution

network and a transparent

approach leads the industry’s

growth. With this thought at

the core, we seek to continue

developing our network and

increasing our geographical

reach. We are constantly

expanding our existing

comprehensive multi-channel

distribution channels that bring

the stability of ows.

UTI AMC enjoys the best of both worlds through its strong in-

house capabilities and an extensive network of external distribution

channels. We reach out to our clients through a number of

distribution channels, including Mutual Fund Distributors (MFDs),

direct distribution and Banks & National Distributors (BNDs). Our

existing distribution network includes 163 UTI Financial Centres

(UFCs), 278 Business Development Associates (BDAs) & Chief Agents

(CAs) and 39 Official Points of Acceptance (OPAs) at KFintech

locations, most of which are located in the B30 cities. Furthermore,

our products are empanelled with most of the banks. Our channels

include distribution arrangements with domestic & foreign banks

and national & regional distributors. We also have dedicated

sales teams for institutional and PSU clients in place while offering

products through UFCs, digital applications, and website. Besides,

our investors are also able to invest in our schemes through mobile

applications.

62%

Direct

29%

MFDs

BNDs

Distribution

Channel

Bifurcation*

*of MF QAAUM as of March 2021

28 ANNUAL REPORT 2020-21

corporate overview

Our UTI International offices in London, Dubai and

Singapore, through which we market our offshore and

domestic MFs, enable the offshore investors to invest in

India.

Our presence is supported through our sales and

marketing strategies focussed on establishing and

At UTI AMC, we are committed to enhancing our geographical presence and open branches where there is business

potential, that may help us garner a protable growth and bring in new investors into the mutual fund fold. We plan

to strengthen further and deepen our relationship with our institutional and PSU clients. Our target is to particularly

focus on developing relationships with MSME and SME institutional clients to expand our domestic mutual fund

investor base. We also endeavour to grow our share of the provident fund business of institutional clients and target

institutional clients who are yet to invest in our domestic mutual funds to increase our overall reach.

maintaining retail and institutional management. Each

distribution channel has the requisite oversight and

manpower to service the potential opportunities in the

marketplace. They also enable us to bring down the

average cost of distribution in the long run.

Himachal

Pradesh 1

J&K 1

Punjab 5

Chandigarh 1

Haryana 5

Uttara

khand 3

Uttar Pradesh 13

Delhi 5

Rajasthan 10

Gujarat 15

Goa 2

Maharashtra 22

Madhya Pradesh 5

Telengana 4

Andhra Pradesh 7

Puducherry 1

Tamil Nadu 10

Kerela 5

Karnataka 11

Odisha 6

Chhattisgarh 3

Jharkhand 4

West Bengal 13

Bihar 5

Assam 4

Meghalya 1

Tripura 1

Map not to scale. For illustrative purposes only.

Our Pan India Reach

Inputs Outcomes Capitals Impacted Stakeholders Impacted

163 UTI Financial Centres

694 Districts covered

Increased scalability

Increased reach through

enhanced branch radius

Smoother operations

Service

Financial

Human

Social & Relationship

Customers

Investors

Employees

UTI ASSET MANAGEMENT COMPANY LIMITED 29

Statutory reportS

financial statements

COMMITTED TO FINANCIAL

INCLUSION – B30 CITIES

The Indian Mutual

Fund industry is

expected to continue

propelling forward.

The anticipated growth

will be underwritten

by supportive industry

dynamics and long-

term structural

drivers, including

nancialisation of

household savings,

increasing market penetration of

Mutual Fund products, favourable

population and urbanisation

trends. At 6.7%, Mutual Funds

currently constitute only a small

portion of the gross household

nancial assets*, with the gure

likely to be lower in B30 cities.

Higher share from B30

of overall MF MAAUM as

compared to industry

Industry

23%

16%

*As of September 2020. Source: RBI Bulletin

AMCs generally incur additional distribution costs to

onboard retail customers. This again requires higher

spending on infrastructure and marketing capabilities.

As a result, AMCs with a strong existing presence in

B30 markets are better positioned to penetrate these

markets and enjoy a better play on operating leverage.

At 23%, we have a higher proportion of our Monthly

Average AUM (MAAUM) attributable to B30 cities as

compared to industry. We have a strong foothold in

these cities with a high share, with our BDA network being

in existence for nearly 3 decades. Furthermore, our broad

distribution network in B30 cities provides us economies

of scale, particularly in distribution, marketing, and back-

office activities, bringing in cost efficiencies. Since the

B30 customers are generally stickier in nature, they offer

comparatively higher profit margins.

30 ANNUAL REPORT 2020-21

corporate overview

Overall, the B30 cities currently

contribute to a lower share for

the industry as compared to the

T30 cities. This further goes on

to indicate that there is a lot of

untapped potential in these cities.

Although the figure may not be as

high, on a positive note, the share

has been increasing Y-o-Y since

2014-15. The shift has been led

by individual investors, who have

historically been inclined towards

equity funds.

At UTI AMC, we believe we are

well-positioned to capitalise on

the favourable industry dynamics,

including the under penetration

Going forward, our established presence in B30 cities positions us well to capitalise on future growth in those

underpenetrated markets. However, expanding further into these markets may require substantial investments in

marketing and distribution, which could impact our prot margins. As a result, we have been adopting an approach

to leverage the network of our long-standing MFDs, Banks and Distributors as well as through Digital presence. This

will help bring in the right balance between online interfacing and in-person interaction, eventually lowering the

cost of customer acquisition, compliance and other processes. And will help us reach more remote areas without

incurring substantial costs.

382

UFCs (106) and BDAs &

CAs (276) in B30 Cities

of MF products, owing to our

established presence. We are

in the right space to attract new

clients and positions through

our broad-spread distribution

network, wherein we can reach

a wider spectrum of individual

investors. Our broad client base

also provides us with a number of

opportunities, including cross-

selling of different funds. Out of

the current network of 163 UFCs,

106 are based out of B30 cities,

further testifying our focus towards

them.

As per regulatory norms set by the

Regulator, a certain proportion of the

total AUM needs to be parked aside

towards spreading financial awareness

and investor education, in order to drive

the industry forward. We believe this

step is in the right direction. Being the

pioneers of this industry, we take pride

in having conducted investor education

and awareness programmes in the

smaller towns of India, well before it

was made mandatory. We believe that

this is imperative to make the investor

from a small centre more confident

to invest in mutual funds. In order to

effectively communicate with potential

investors across the country, we have

been concentrating on investor education

in local languages to create higher

awareness about mutual funds.

Inputs Outcomes Capitals Impacted Stakeholders Impacted

106 No. of UFCs in

B30 cities

276 BDAs and CAs in

B30 cities

56,600 No. of MFDs

23% Share of our MAAUM of

B30 cities

8.9% Folio growth in B30

cities

Higher share of MAAUM in

B30 cities as compared to the

industry

Service

Financial

Social & Relationship

Distributors

Customers

UTI ASSET MANAGEMENT COMPANY LIMITED 31

Statutory reportS

financial statements

LED BY A STRONG CONVICTION

OF DIGITAL PRIORITIES –

ANYWHERE AND EVERYWHERE

At UTI AMC, we believe

in being ready for the

future. And today,

digital is the future. The

companies who have

adopted digital and

can better embrace it

will drive growth in the

times to come. There

is a strong reason to

believe that technology

and digital adoption will

enhance organisational

efciency, bring in cost

optimisation, improve

customer acquisition and

experience while also

ensuring data security.

With this philosophy,

we have undertaken a

comprehensive digital

transformation project

to build our Company’s

efcacy, capacity,

resilience and cost-

effectiveness.

Our digital transformation

programme involves multiple

initiatives incorporating

application modernisation,

hybrid cloud architecture

adoption, business process

digitalisation, enterprise

data platform adoption and

cybersecurity enhancement.

However, the larger focus

of this programme is the

implementation of a ‘cloud

first’ vision. The idea is to

focus on the adoption of

applications and services

to reduce time-to-market

and ensure high availability,

scalability, security and the

cost-optimised deployment

of applications and services.

Thus, leading to a reduced

cost of ownership and

maintenance.

Further, to ramp up the

digitalisation across the

board, we will continue

investing in digital marketing

and other customer and

distributor-facing digital

initiatives. Our constant

endeavour is to make

our services seamlessly

accessible on mobile

platforms by building,

improving and maintaining

mobile applications for our

salesforce. We are doing

the same to ensure that the

customers, distributors and

employees increasingly use

mobile platforms to access

our services.

We intend to scale up the

frequency and pace of our

digital marketing campaigns.

Besides, we also plan to

increase the number of

digital platforms such as

WhatsApp and chatbots,

through which we interact

with our current and potential

customers. We will continue

building interfaces for fintech,

payments and other digital

distribution platforms to

ensure seamless connectivity

and enhance customer

reach. Going ahead, we will

also continue encouraging

the adoption of digital

tools, which have proven

particularly important during

the Covid-19 pandemic.

32 ANNUAL REPORT 2020-21

corporate overview

Acceptance of digitalisation has started reecting in growing online transactions

The initiatives we have been undertaking today are preparing us to remain ready for tomorrow. We are adopting these

initiatives across all our functions right from operational, nance and investments to marketing. Going ahead, we will

continue embracing newer technologies to ensure that we create more convenience, reduce friction and deliver faster.

We will consistently continue to invest towards the right infrastructure. And build a more secure environment with our

IT and digital teams working in collaboration. Furthermore, we will also continue adopting Articial Intelligence (AI)

and Machine Learning (ML) to churn Big Data, thereby taking the Company to the next level of growth.

Inputs Outcomes Capitals Impacted Stakeholders Impacted

24x7 Digital channels

UTI Buddy

700+ No. of digital

marketing campaigns

INR 27.7 crore

Investments towards IT

and cybersecurity

4,28,264 No. of digital SIP

transactions

75.34% Growth in number

of digital SIP transactions in

2020-21 as compared to

2019-20

94% Total gross sales of

Equity, Debt & Hybrid Funds

through online platform

Service

Financial

Intellectual

Social & Relationship

Employees

Shareholders

Social

Customers

Assisted Journeys

Integrated

Customer Service for Product and

Investment Enquiry

24x7 Availability in 6 Languages

Chat with Agent Service

Call-back to Customers

Outbound Voice Bot

Building Community

Engagement on Multiple

Touch Points across Social Media

UTI Swatantra Investor Education

Initiative

Content Distribution

Launched Two Investor Education

Campaigns for ELSS & for Women

Investors

Simplifying Life

e-OTM

uSAVE

Digital KYC

Missed Call Services

Flexi Savings Plan

Quick Invest

Quick Pay Feature

Personalised and

Contextual Journey

Multi-media Marketing Platforms

Relevant Content Delivery through

Preferred Channels

Consistency and Personalisation in

Customer Experience

Progressive Profiling Campaigns

Partner

Enablement

UTI Buddy Office on the go App

and Web Interface

Online Empanelment of MFDs

Initiate Transactions for Investors

to Reduce Sales Cycle

API Integrations with Partners and

Aggregators

24x7 Digital

Channels

Anytime, Anywhere Convenience

Website utimf.com and Mobile App

Chatbot UNO and WhatsApp

Interface

Number of digital purchase

transaction (in lakhs)

FY 18

14.9

FY 19

20.1

FY 20

26.0

FY 21

41.4

Sales through digital platforms (as a %

of Equity and Hybrid MF Gross Sales)

FY 18

6.5

FY 19

15.9

FY 20

22.9

FY 21

42.25

UTI ASSET MANAGEMENT COMPANY LIMITED 33

Statutory reportS

financial statements

POWERING OUR PEOPLE’S

CAPABILITIES

At UTI AMC, we have consciously created a positive

working environment promoting employee safety, growth

and goal attainment. All our efforts are directed towards

encouraging our employees to perform to their highest

ability. We strongly believe that our ability to continue

delivering value for all stakeholders centres around

our ability to attract, develop and retain dedicated and

talented people. Our focus is on building a team that is

inspired by our purpose and attracting individuals who

take emotional ownership of what they do.

158

No. of employees

hired during the

year 2020-21

18+

Average years of

employee tenure

at UTI AMC

75:25

Gender ratio for

males to females

34 ANNUAL REPORT 2020-21

corporate overview

Our success directly depends

on our team of employees.

And so, we are continually

implementing several measures

to strengthen our workforce

further and improve their

motivation and development. For

example, we provide merit-based

employee compensation, which

is benchmarked to our industry

and will continue doing so in

future. Further, we use a balanced

scorecard system as part of

our performance management

system. It facilitates a holistic

assessment of our employees’

performance, supporting our ‘pay

for performance’ culture.

Our Company has always

emphasised and will continue

to focus on training and

development of our employees.

To this, we first identify short

and long-term organisational

capability requirements. Then

we establish training and

development strategies and

plans aligned to our business

objectives. Our mentoring

programme further supports

the professional growth and

development of the Company’s

new hires.

Besides, our Employee Share

Ownership Plan (ESOP) fosters

a culture of ownership and

alignment of employees’ interests

with that of our business. We

believe this ownership model

and our emphasis on team-

oriented management is likely

to further promote a shared

sense of purpose with our clients.

Additionally, it will help contribute

to low staff turnover and attract

and retain quality talent critical to

our success.

We will also continue to

pursue our strategy of external

recruitment from the market and

merit-based internal promotions,

with a particular focus on

recruiting young talent.

At UTI AMC, we endeavour to create an atmosphere where employees are constantly motivated and self-driven to

achieve their personal and business goals. Therefore, we will continue to provide industry-benchmarked salaries,

incentive-based compensation (including ESOPs) and conduct specic training programmes.

Inputs Outcomes Capitals Impacted Stakeholders Impacted

1,474 employees

373 Female employees

INR 379 crore

Employee benefit cost

22 Training and

skill development

programmes

5,919 Hours of training

conducted during the

year 2020-21

702 employees trained

during the year

Service

Financial

Human

Employees

UTI ASSET MANAGEMENT COMPANY LIMITED 35

Statutory reportS

financial statements

COMMITTED TO

ENVIRONMENT, SOCIAL,

GOVERNANCE (ESG)

Environmental, Social, and Governance (ESG)

parameters are the top three non-nancial performance

indicators in today’s business environment. Over the

last couple of years, they have gained signicance and

become critical for long term competitive success. Today,

a structured disclosure of performance is an essential

requirement for businesses. The increased attention

around the environment, well-being of employees,

societal concerns and transparency in the business

are central factors while measuring the sustainability

and societal impact of an investment in a company

or business. In line with this, at UTI AMC, we have

proactively initiated concerted efforts in benchmarking

our processes and policies with the global best practices

across the domain of ESG.

We have undertaken a thorough review of policies, processes, disclosure requirements on ESG in a phased manner. In

order to bring the required focus to the continuously evolving ESG landscape that impacts our business, we have embarked

on the process of setting up a Board level ESG committee. The vision behind setting up this committee is to support

the organisation’s commitments towards the environment, health and safety, corporate social responsibility, corporate

governance, sustainability, and other relevant public policy matters. The committee will provide guidance, leadership and

necessary oversight for:

Embedding ESG

aspects into the

business strategy

Developing,

implementing,

and monitoring

interventions

and related

policies

Engaging with

the stakeholders

by overseeing

communications

relating to ESG

aspects

Monitoring

and assessing

development and

improving the

organisation’s

understanding of

ESG aspects

Ensuring efficient

and timely

disclosure of

ESG aspects to

stakeholders

36 ANNUAL REPORT 2020-21

corporate overview

Furthermore, significant progress has been made in the journey

to becoming an ESG benchmarked-organisation within the Asset

Management segment. We are in the process of putting together

the ESG integration framework that is also applicable to our

group companies, namely UTI International Ltd., UTI Retirement

Solutions Ltd., UTI Venture Funds and UTI Capital Pvt. Ltd. The ESG

framework is the first major step towards integrating essential ESG

aspects into our business operations. This framework draws from

global best practices and standards. It will serve as the guidebook

for strengthening existing management systems and cater to ESG

disclosure requirements of various stakeholders such as regulatory

authorities, shareholders, civil society, industry associations, media/

rating agencies.

Simultaneously, we have also initiated work on developing the

materiality assessment for ESG aspects. This exercise will help

identify and prioritise organisation-specific ESG considerations.

It will use focus group discussions and guidance provided

by sector-specific ESG standards such as Global Reporting

Initiative’s Financial Services Sector Disclosure and Sustainability

Accounting Standards Board (SASB)

for Asset Management and

Custody Activities. This will be followed by developing the Annual

ESG Report for UTI AMC as per Global Reporting Initiative’s

Standard ‘In Accordance – Core’. It will serve as the Company’s

ESG performance report card along with the improvement

plans going forward. The Global Reporting Initiative (GRI) is

an international independent standards organisation that helps

businesses, governments, and other organisations understand

and communicate their impacts on climate change, human rights

and corruption. It is one of the most widely adopted standards for

ESG disclosures. The majority of Fortune 500 companies choose

to report as per GRI Standards. Moreover, demonstrating our

commitment to work towards global concerns like climate change,

we would be reporting on the Greenhouse Gas (GHG) emissions

inventory for the organisation in our ESG disclosure, along with

plan to mitigate GHG emissions from our business operations.

We are now at

the cusp of our

ESG journey, and

there is a need

for continuous

improvement as

we progress to

keep pace with

the changing ESG

landscape. We will

be considering

getting rated

by leading ESG

rating agencies

to benchmark our

performance within

the peer group

and the industry

at large to identify

further areas of

improvement.

SASB is now part of Value Reporting

Foundation

UTI ASSET MANAGEMENT COMPANY LIMITED 37

Statutory reportS

financial statements

CONVICTION TO IMPROVE

INVESTOR EDUCATION AND

ENHANCE AWARENESS

Low Mutual Fund penetration levels in India are

primarily due to the lack of awareness about this

asset class. As per SEBI’s investor awareness survey

conducted in 2015, mutual funds/SIPs were used by

only 10% of the respondents as investment and saving

avenues. This clearly indicates the necessity to create

better investor awareness. Overall advertisements by

fund houses and robust market performance are likely

to boost investors participation. This is further likely

to help deepen mutual fund penetration among new

investors, particularly in B30 markets.

Keeping the investors’ interest in mind while also encouraging higher

participation, SEBI’s regulations directed AMCs to keep aside at least

2 bps of daily net assets for investor education initiatives. This was to

boost awareness of capital markets investment products. As a responsible

organisation, we embarked upon our investor education journey in 2010.

We incubated the ‘Swatantra’ platform with the primary objective of

creating awareness about financial planning and the benefits of investing

in Mutual Funds among the common people.

UTI Swatantra

UTI Swatantra is our flagship investor education initiative. In 2013, UTI

Swatantra became India’s largest investor education programme

based on reach, making it to the Limca Book of Records. Since then,

Swatantra has undergone several changes. It is striving to mirror even

more customer responses by comprehending how customers interact

with media and how they eventually consume it. Basis this, in 2019, we

refreshed the platform by creating a multi-channel approach entailing:

Regular publications in print media

Talk show radio programmes

Presence on social media

Objectives of our Well-

structured and Efciently

Implemented Investor

Education Programme:

Protecting investors by educating them

on their rights and responsibilities

Empowering with the knowledge to

evaluate different financial products

and make informed decisions

Enabling investors to understand and

manage risks

Reducing investors vulnerability to

fraudulent schemes

Expanding outreach of financial services

and products

Planning an informed retirement and

finances

Participating in financial markets with

confidence

38 ANNUAL REPORT 2020-21

corporate overview

1. Chatbot

We launched Chatbot in October 2020 to enhance the consumer

experience on our website. It is aimed at deriving more insights from users’

journey to find a better opportunity to engage through their personalised

journey. Thus, helping them make a more informed investment decision, and

all with the click of a button.

2. Quora Handle

We started our Quora handle in the name Swatantra Kumar in October

2020. The idea behind this was to reach and engage with a high intent

audience seeking information to make their investment decisions.

Some of the initiatives that we undertook around the year as stated below:

3. Interactive ‘Expert Se Poocho’ page

We also launched a page on UTIswatantra.com in November 2020. This was

to connect the consumers with a panel of qualified investment advisors.

4. Launched Third Season of the Radio Show ‘#Mutual

fund 101’ in January 2021

We launched our radio show on the channel Radio One across 5 cities. This

is a weekly morning drive time show where experts (MFD’s) from each of the

5 cities engage with listeners by telling them all about investing in mutual

funds. It throws light on how people with varied goals/age/profile/income

can start their investment journey.

6. Other Marquee Initiatives

Conducted FB Live shows with experts

Created engaging, byte-sized content using innovative formats

Repurposed existing content to build better connect

Produced regional content in 11 languages to reach larger

audiences

Launched Utiswatantra.com

5. The Colloquium

We launched our virtual marquee event named ‘The Colloquium’ on 18

March 2021 to extend our knowledge-sharing objective about the prevailing

market trends. It targeted our key clients to encourage enriching conversations

with prominent thought leaders.

20,000

Registrations Witnessed

UTI ASSET MANAGEMENT COMPANY LIMITED 39

Statutory reportS

financial statements

We have always aimed to increase brand salience through

specic investor-segment led conversations as well:

1. First Time Jobber Segment

We targeted people in the age bracket of 18-30 years who may

have just begun their wealth creation journey. To provide solutions

to this audience on First Easy Step to start investing in mutual

funds, we promoted Index Fund and investment through SIP for

various life goals.

Initiatives under this campaign were:

Investor Awareness Programme (IAP): We started this

financial literacy programme for college students to start

their future on the right note.

People Reached through TV

Campaigns via Movies, News and

Regional GEC Channels

CRORE +

Conducted across

105 Cities

188

CAMPS

Unique Listeners’ Reach

through Podcasts

1,00,000

Millennial Money Matters (Podcast): We created

this podcast series comprising 4 episodes. We

presented different stories in each episode to show

how one can manage his/her first paycheque and be

smart with money.

40 ANNUAL REPORT 2020-21

corporate overview

Total Reach through the

Tax Campaign

5.1

CRORE

Share of Voice (SOV) on

Television in the MF Category

88%

2. Launched Women Investor Education

Campaigns

We launched ‘Equal Right Equal Responsibilities’ campaign

to raise awareness and drive investor education amongst

independent, working women.

Audience Reach through Women

Investor Education Campaign

2.2

CRORE +

Besides, we also created some thought-provoking video-

based content on the same lines and promoted it on TV and

digital platforms.

3. Tax Campaigns

We ran an investor education campaign for promoting ELSS

with dual benefits. Generally, in the month of March, people

tend to panic because of last-minute tax planning. We created

more awareness and shared information on tax saving and

wealth creation through this campaign run around tax filing

time across TV and digital platforms.

UTI ASSET MANAGEMENT COMPANY LIMITED 41

Statutory reportS

financial statements

GOVERNANCE

Dinesh Kumar Mehrotra is the Non-Executive Chairman and Independent Director of the

Company. He 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 B.Sc. (Honours) degree from the University of Patna. His appointment as an Independent

Director of the Company was approved by the shareholders at the Annual General

Meeting held on 23 August 2017.

Edward Cage Bernard is a Non-Executive Director of the Company. Prior to joining the

Company, he was associated with the TRP group as a Vice Chairman, T. Rowe Price

Group Inc. as a Director on the Board and as a member of the firm’s Management

Committee. Currently, he is also associated with T. Rowe Price Group Inc. as a Senior

Advisor. He holds a B.A. degree in Religious Studies from Brown University and an MBA in

finance from New York University Leonard N. Stern School of Business. His appointment

as an Non-Executive Director of the Company was approved by the shareholders at the

Annual General Meeting held on 22 August 2019.

Flemming Madsen is a Non-Executive Director of the Company. He is the Head of Global

Financial Intermediaries at T. Rowe Price. He is a Vice President of T. Rowe Price Group,

Inc., T. Rowe Price International Ltd and member of the EMEA Distribution Executive

Committee. He has been associated with T. Rowe Price for 21 years. His total 37 years’

experience in the financial industry includes capital markets transactions, investment

banking, and asset management. His appointment as an Non-Executive Director of the

Company was approved by the shareholders at the Extra Ordinary General Meeting held

on 20 January 2010.

Mr. Dinesh Kumar Mehrotra

Non-Executive Chairman and Independent Director

Mr. Edward Cage Bernard

Non-Executive Non-Independent Director

Mr. Flemming Madsen

Non-Executive Non-Independent Director

DOA: 11 April 2017

DOA: 01 October 2018

DOA: 20 January 2010

Board of Directors

42 ANNUAL REPORT 2020-21

corporate overview

Deepak Kumar Chatterjee is an Independent Director of the Company. Prior to joining the

Company, he was associated with SBI Funds Management Private Limited as the Managing

Director and Chief Executive Officer and SBI Capital Markets Limited as a Executive Vice

President. He was also associated with IIFCL Projects Limited as its Chief Executive Officer

and IIFCL Asset Management Company Limited as a Director. He holds a B.Sc. (Honours)

degree in Physics from University of Delhi, an M.Sc. degree in Agricultural Physics from

Indian Agricultural Research Institute, New Delhi and an MBA from University of Delhi. He

is also a Certificated Associate of the Indian Institute of Bankers. His appointment as an

Independent Director of the Company was approved by the shareholders at the Annual

General Meeting held on 25 September 2018.

Rajeev Kakar is an Independent Director of the Company. He currently serves on the

boards of various banks and financial institutions such as Eurobank Ergasias SA (Greece),

Gulf International Bank (GIB Bahrain), Gulf International Bank (GIB Saudi Arabia) and

Commercial International Bank (Egypt). He started his career in 1988 at Citibank NA,

where he worked for 18 years and in his last role, was the Managing Director and Division

Head for Turkey, Middle East and Africa region. In 2006, he moved to become the Global

co-founder of Fullerton Financial Holdings Pte. Ltd., headquartered in Singapore (a wholly-

owned subsidiary of Temasek Holdings Pte. Ltd., Singapore), where he served for 11 years

in various roles including serving on its Global Management Board, as its Executive Vice

President, Head of Consumer Banking and Head of Central and Eastern Europe, Middle

East and Africa region. Simultaneously, he also was the Founder of Dunia Finance LLC in

UAE, where he operated as its Managing Director and Chief Executive Officer. He holds a

B. Tech. degree in Mechanical Engineering from the Indian Institute of Technology, Delhi

and a Post Graduate Diploma in Management from the Indian Institute of Management,

Ahmedabad. His appointment as an Independent Director of the Company was approved

by the shareholders at the Extra Ordinary General Meeting held on 16 December 2019.

Mr. Deepak Kumar Chatterjee

Independent Director

Mr. Rajeev Kakar

Independent Director

DOA: 25 September 2018

DOA: 20 November 2019

Narasimhan Seshadri is an Independent Director of the Company. He has four decades of

experience in the banking industry, having served two major public sector banks viz Canara

Bank and Bank of India. Prior to joining the Company, he was a Director on the board of

NPCI and a whole-time Executive Director on the Board of Bank of India. He holds Masters

Degree in Commerce from Bangalore university: Masters in Divya Prabandam MA (DP)

from Sastra University and Masters in Banking and Finance (MBA Banking and Finance)

from IGNOU/Indian Institute of Bankers. He is a certified associate of the India institute of

Bankers. His appointment as an Independent Director of the Company was approved by

the shareholders at the Annual General Meeting held on 23 August 2017.

Mr. Narasimhan Seshadri

Independent Director

DOA: 14 October 2016

UTI ASSET MANAGEMENT COMPANY LIMITED 43

Statutory reportS

financial statements

Dipali H Sheth is an Independent Director of the Company. Dipali serves as Independent

Director on the Boards of four other companies. Prior to joining the Company, she was

associated with RBS Business Services Private Limited as the Country Head of Human

Resources, Standard Chartered Bank as Head HR South Asia, Procter & Gamble

Distribution Company Limited and DCM Limited. She holds a B.A. (Honours) degree in

Economics from University of Delhi, passed out from the DCM Management Centre, and

is an accredited Coach from ICF and Gallup, USA. Her appointment as an Independent

Director of the Company was approved by the shareholders at the Extra Ordinary General

Meeting held on 16 December 2019.

Jayashree Vaidhyanathan is an Independent Director of the Company. She currently

serves as a Co-Founder and CEO of BCT Digital, a technology company specialising

in AI and Predictive analytics. Prior to BCT, she was associated with Scope International

Private Limited as Head of Technology and Strategy and served as a partner with

Accenture Services Private Limited. She has also served as an Independent Director

in Altran, a $3.2 Billion Global Engineering and Innovation consulting firm and

Mahindra Sanyo Steel. She holds a B.E. degree in Computer Science Engineering from

University of Madras and an MBA from Cornell University. She is also a Chartered

Financial Analyst from the Association for Investment Management and Research.

Her appointment as an Independent Director of the Company was approved by the

shareholders at the Extra Ordinary General Meeting held on 16 December 2019.

Imtaiyazur Rahman is the Chief Executive Officer and Whole-Time Director of the

Company. He has more than 30 years of experience in management, business leadership,

leading change and forming strategic alliances. He joined the UTI Group in 1998 as part

of UTI Investor Technology Services Ltd. and joined UTI AMC Ltd. in 2003. He was also

the CFO of the Company from 2005. In his role as Group President & Chief Finance

Officer, he headed the functions of Finance, Accounts, Taxation, Information Technology

and Board related matters. He is a Science graduate, Fellow member of Institute of

Cost Accountants of India and Institute of Company Secretaries of India, Certified Public

Accountant (USA) and GAMP (ISB-Kellog).

Mr. Rahman is on the Board of UTI International (Singapore), UTI International Ltd.

Guernsey, UTI Venture Funds Management Co. Pvt. Ltd., UTI Capital Ltd., UTI Retirement

Solutions Ltd., IOT Infrastructure & Energy Services Ltd. and Association of Mutual Funds

in India. He was also a member of the working group for risk management in liquid

schemes constituted by SEBI. Prior to joining the Company, he was associated with Sumeet

Machines Ltd, Leasing Finance India Ltd, Bells Controls Ltd, New India Rubber Works (P)

Ltd. and S. Gupta & Co.

Ms. Dipali Hemant Sheth

Independent Director

Ms. Jayashree Vaidhyanathan

Independent Director

Mr. Imtaiyazur Rahman

CEO & Whole Time Director

DOA: 20 November 2019

DOA: 28 April 2019

44 ANNUAL REPORT 2020-21

corporate overview

Senior Management

Mr. Vetri Subramaniam

Group President

and Head of Equity

Mr. Imtaiyazur Rahman

Chief Executive Ofcer

and Whole-Time Director

Mr. Surojit Saha

Chief Financial Ofcer

Mr. Amandeep Chopra

Group President

and Head of Fixed Income

Mr. Arvind Patkar

Company Secretary

UTI ASSET MANAGEMENT COMPANY LIMITED 45

Statutory reportS

financial statements

Mr. Vivek Maheshwari

Senior Executive Vice President,

Head of Risk and Compliance Ofcer (MF)

Mr. Indranil Choudhury

President

and Head of Human Resources

Mr. Vinay Lakhotia

Senior Executive Vice President

and Head of Operations

Mr. Gaurav Suri

Senior Executive Vice President

and Head of Marketing

Mr. Peshotan Dastoor

Group President

and Head of Sales

46 ANNUAL REPORT 2020-21

corporate overview

Mr. Balram Bhagat

Chief Executive Ofcer

– UTI Retirement Solutions Ltd.

Mr. Rohit Gulati

Chief Executive Ofcer

– UTI Capital Ltd.

Mr. Praveen Jagwani

Chief Executive Ofcer

– UTI International Ltd.

Mr. Sandeep Samsi

Executive Vice President,

Executive Assistant to CEO

and Head of Corporate Communications,

Strategy & Investor Relations

Mr. Siddamurthy

Raghunath Reddy

Executive Vice President

and Head of Information Technology

UTI ASSET MANAGEMENT COMPANY LIMITED 47

Statutory reportS

financial statements

RISK MANAGEMENT AT

UTI AMC

Risk management is one of the key focus areas for

us at UTI AMC. We have established processes and

systems in place to ensure a robust company-wide

risk management. Our Board of Directors formulates

and periodically reviews our risk management

policies, procedures and processes. These entail

delegation of investment and nancial responsibilities,

establishing prudent investment norms, approving

and disseminating guidelines and restrictions, and

establishing counter-party limits. The Board also

reviews the performance of funds against the relevant

benchmark and competing funds. Besides, we have

a well-qualied team of professionals with rich

experience, which reports to the Board.

Market : The risk of uncertainty is associated

with any investment decision. Price volatility often

arises due to unanticipated fluctuations in factors

that commonly affect the entire financial market.

Market risk is the possibility of loss arising from

changes in the value of a financial instrument

due to changes in market variables such as equity

prices, interest rates, exchange rates or other asset

prices, or higher volatility of funds or returns as

compared to the benchmark or competing funds.

Position limits

Price movement alerts

Stress Tests and Value at

Risk (VaR)

Board of

Directors

Risk Management

Internal Audit &

Operating Risk

Compliance

CEO

Audit Committee of the Board

(5 Directors)

Risk Management Committee of

the Board (5 Directors)

Risk adjusted performance

measurement

Description Mitigation Measures

48 ANNUAL REPORT 2020-21

corporate overview

Operational: The risk of loss from

inadequate or failed internal processes and

systems or from external events, including

employee errors, improper documentation

of transactions, failure of operational and

information security procedures, computer

systems, software or other equipment,

business interruptions and inappropriate

behaviour of employees or vendors.

Straight through processing

Segregation of front office and

back office

Inbuilt systems control

Concurrent Audit (Dealing and

NAV)

Internal Audit Function

Adequate risk disclosures and

trained sales team

Credit: The risk of loss in the market

value of debt securities due to downgrading

by credit rating agencies or default in

payment by issuers.

Investment: Our funds are

exposed to underperformance risk with

respect to both the relevant benchmarks

and competing funds due to investment

related risks, which include market risks

and credit risks.

Liquidity/Concentration: This

risk mainly arises in respect of open-ended

funds, which typically allow investors to

redeem their units at any time. If a significant

number of investors opt for redemption from

a particular fund simultaneously, the fund

may face liquidity risk. The risk is particularly

high in respect of Income Funds, considering

the low level of debt securities actively

traded in Indian markets and the high

concentration of investors in select funds.

Counter-party exposure limits

Committee’s approval above

predefined limits

Independent review of external

credit ratings

In-house Credit Research Team

Comprehensive Investment

Manual

Benchmarking

Regular monitoring of funds

Quantitative investment

restrictions

Inbuilt System Control

Review of equity holdings

Review of portfolio

concentrations

Review of investors’

concentration

Covid-19 impact: As a part of our response to the Covid-19 pandemic, we reinforced our operational risk

management and enhanced our business continuity programme. It helped us scale beyond the physical office premises

and enabled our employees to work from home with secure remote access (including usage of virtual private networks

and two-factor authentication for software as a service-based application). Additionally, we also adopted certain

policies and procedures to manage various risks applicable to our operations. Even under a digital environment,

the basics of the risk management process remain the same. Hence, even during these testing times, we continue to

operate within strong governance structures, and we will continually endeavour to enhance and strengthen it.

Description Mitigation Measures

Offsite DR Centre

Business Continuity Planning

and periodic DR Drills

Comprehensive Insurance

Board of Trustees and

Compliance Officer

Early warning signal

framework and system

Investment in high rated

debt securities

Restrictions on unrated

investments

Review of Credit VaR

Review of Performance

Research Fund

Independent dealing room

Performance-based Incentive

Independent risk management

Position limits for single

positions

Line of credit

Minimum regulatory liquid

assets

UTI ASSET MANAGEMENT COMPANY LIMITED 49

Statutory reportS

financial statements

MATERIALITY AND

STAKEHOLDER ENGAGEMENT

AT UTI AMC

At UTI AMC, being part of the Mutual Fund industry,

our business is dependent on relationships with our

several stakeholders including customers, employees,

shareholders, business associates, communities,

and regulators, among others. We believe that a

successful business is all about strong relationships.

While engaging with our stakeholders, it is highly imperative to take cognisance of the material aspects

that could impact our ability to create value over the short, medium and long-term horizons. This belief

fosters an inclusive approach focussed on understanding their needs, interests and expectations.

We regularly engage with them and periodically review these material aspects in the context of the

macroeconomic environment, changing business environment, social, emerging trends and feedback

from stakeholders. In identifying the material issues, we follow a process to determine those issues

which could significantly impact the sustainability of the business across various cycles. As a result,

enabling us to create value for both, the organisation as well as the stakeholders.

Stakeholder

identication

Recording the responses

and ltering those

on the basis of their

needs, demands and

expectations

Rating them by the level

of importance for us

and from stakeholder

standpoint

Development of

mechanism to

communicate with them

on a regular basis

Arrive at the material

aspects for the

business

Consider these as

priorities, at Board

level to comprehend if

these can be included

as part of strategic way

forward

Process used to identify material issues

50 ANNUAL REPORT 2020-21

corporate overview

Material issues identied by the us through our engagements

with our stakeholders:

Parameters of high importance

Customer-centricity Economic

Responsible business

practices

Customer service Economic performance

Ethical practices, anti-bribery, and

corruption

Data protection and information

security

Risk modelling and management Transparency and disclosures

Stability of system and processes Financial performance Responsible investment

Innovation and IT deployment Cost control and profit margin Community well-being

Customer protection and satisfaction Market/Product competition Risk and capital management

Product quality Industry trends Climate change

Technological advancement

Delivering appropriate

shareholders’ returns

Grievance mechanisms

Brand loyalty and Company

reputation

Diversity and inclusion

Investor awareness programmes and

financial literacy

Employee engagements

Occupational health and safety

Human rights

Gender diversity

Talent retention and succession

Operational excellence

Waste management

UTI ASSET MANAGEMENT COMPANY LIMITED 51

Statutory reportS

financial statements

Increase geographical reach and expand

distribution channels

Deepen presence in T30 cities

Continue to leverage long-standing relationships with MFDs to reach

more remote areas without incurring substantial costs

Broaden distribution network enabling reach to individual investors

(B30 cities and historically underserved areas)

Developing relationships with small and medium-sized institutional

clients

#Strategy 1

Continue to develop PMS, Offshore and

Alternative Funds businesses

Focus on distribution partnerships, including co-branded and white-

labelled funds

Expand in-house distribution and client coverage capabilities, including

making further in-market hires overseas

Strengthen relationships with wealth platforms and local banks

Expand alternative investment funds business

#Strategy 2

STRATEGIC INITIATIVES

PROPELLING OUR

CAPABILITIES

At UTI AMC, our focus has been on developing strategies

that eventually help deliver long-term value for us and

the stakeholders at large. Our strategies are specially

designed to respond to the current and expected future

operating environments promptly. Thus, strengthening

our capability and potential to create value.

52 ANNUAL REPORT 2020-21

corporate overview

Continue to attract, retain and develop

human capital

Ownership model and emphasis on team-oriented management

Hired 158 personnel including management trainees in 2020-21

#Strategy 3

Drive superior investment performance

across our categories of funds

Increase the number of companies covered by the in-house

research team and fund strategies

Launch new products and enable AUM growth

Refine performance review processes for fund managers and

research analysts continuously, to optimise performance

#Strategy 4

Actively pursue additional partnership

opportunities

Explore opportunities to establish strategic partnerships with

established distributors, including aggregators with extensive

networks of sub-brokers

#Strategy 5

Leverage technology and digitalisation to

enhance efciency and cost optimisation

Improve customer engagement and ensure data security

Continued investments in digital marketing and other customer-

and distributor-facing digital initiatives

Build interfaces for fintech, payments and other digital distribution

platforms

#Strategy 6

UTI ASSET MANAGEMENT COMPANY LIMITED 53

Statutory reportS

financial statements