mutual fund screener...mutual fund screener –what’s inside01 industry qaaum 02 inflow outflow...
TRANSCRIPT
Mutual Fund ScreenerFor the quarter ended September 2016
ICRA Online LtdA Group ICRA company
Mutual Fund Screener – What’s Inside
01
Industry
QAAUM
02
Inflow Outflow
Analysis
03
Sector
Update
05
Industry
Insights
06
Regulatory
Update
04
Category
Performance
INDUSTRY QAAUM
Section I
Industry QAAUM hits another high, crosses Rs. 16 lakh cr
Industry QAAUM grew for the 12th consecutive period in Q2FY17
The 11.8% QoQ growth in QAAUM was driven by strong participation from retail investors and robust inflow in
equity schemes
Low AUM to GDP ratio of 7% (as of
2015) compared with 11.4% in
Australia, 91% in US, and 51% in UK
suggests huge potential for growth in
the coming quarters1
Growth in QAAUM for the quarter ended Sep 2016
AMCs Range
Top 5 10% to 13%
Next 10 5% to 20%
Rest -21% to 32%
Source: AMFI; ICRA Online Research. AMC list based on Sep 2016 QAAUM
ICRA Online Limited 4
Sep-16,
1,610,729Jun-16,
1,441,02 Sep-15,
1,290,431
0
500,000
1,000,000
1,500,000
2,000,000
Sep-16 Jun-16 Sep-15
In R
s. C
rore
Mutual Fund Industry (QAAUM)
Source: AMFI, ICRA Online Research; QAAUM –Quarterly Average Assets Under Management
QoQ
11.8%
YoY
24.8%
1EY Report (2016) – Mutual Funds: Ready for the next leap
ICICI and HDFC surpass Rs. 2 lakh cr mark in assets
for the first time in history
The share of top-10 AMCs (in terms of QAAUM) fell slightly to 80.1% compared with 80.5% in the last quarter
ICICI Prudential MF retained pole position with QoQ growth of 11.7%
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-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
0
40,000
80,000
120,000
160,000
200,000
240,000
ICICI
Prudential
Mutual Fund
HDFC
Mutual Fund
Reliance
Mutual Fund
Birla Sun
Life Mutual
Fund
SBI Mutual
Fund
UTI Mutual
Fund
Franklin
Templeton
Mutual Fund
Kotak
Mahindra
Mutual Fund
IDFC Mutual
Fund
DSP
BlackRock
Mutual Fund
Qo
QG
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top Ten AMCs
Sep-16 Jun-16 QoQ
Source: AMFI, ICRA Online Research
QAAUM of four fastest growing AMCs
below Rs. 10,000 cr
DHFL Pramerica AMC was not included in the list of top 10 fastest growing AMCs as its YoY growth
of 935% was fuelled by the acquisition of Deutsche MF
Mirae Asset doubled its corpus in the last
one year and registered highest % change
in QAAUM (YoY) of 115.7%
Among the larger AMCs (QAAUM > Rs.
35,000 crore), Tata, Axis, DSP Blackrock
and SBI Mutual Fund have shown
exceptional growth in corpus in the last
one year
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0.00%
30.00%
60.00%
90.00%
120.00%
0
30,000
60,000
90,000
120,000
150,000
SB
I M
utu
al F
un
d
DS
P B
lack
Rock
Mu
tual
Fu
nd
Ax
is M
utu
al F
un
d
Tat
a M
utu
al F
und
L&
T M
utu
al F
un
d
LIC
Mu
tual
Fu
nd
Mo
tila
l O
swal
Mu
tual
Fu
nd
Mir
ae A
sset
Mu
tual
Fun
d
Ed
elw
eiss
Mu
tual
Fun
d
Qu
antu
m M
utu
al F
und
Yo
Y G
row
th (
In %
)
AU
M (
In R
s. C
rore
)
Top ten fastest growing AMCs
Sep-16 Sep-15 YoY
Source: AMFI, ICRA Online Research
Private sector joint ventures (predominantly Indian)
manage 58% of QAAUM
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Bank
Sponsored_JV_Predomi
nantly Foreign
1%
Bank
Sponsored_JV_Predomi
nantly Indian
9%
Bank Sponsored_Others
8%
Institutions_Indian
1%
Private Sector_Foreign
7%
Private Sector_Indian
13%
Private
Sector_JV_Others
2%
Private
Sector_JV_Predominantl
y Foreign
Private
Sector_JV_Predominant
ly Indian
58%
Source: AMFI, ICRA Online Research, data pertains to Sep-16
INFLOW OUTFLOW ANALYSIS
Section II
Net inflow/outflow during Q2FY17
Equity funds scaled new highs aided by both
strong inflows and mark-to-market gains
Short-term debt funds continued to gain
investors’ confidence amid uncertain interest
rate scenario
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-50,000 -20,000 10,000 40,000 70,000
Income
Infrastructure Debt Fund
Equity
Balanced
Liquid/Money Market
Gilt
Elss - Equity
Gold Etf
Other Etfs
Fund Of Funds Investing Overseas
Category wise net inflow
Q2FY16 Q1FY17 Q2FY17
Source: AMFI, ICRA Online Research
Q2FY17,
144,123
Q1FY17,
90,441
Q2FY1
-30,000
0
30,000
60,000
90,000
120,000
150,000
180,000
Q2FY17 Q1FY17 Q2FY16
Net inflow/outflow
Source: AMFI, ICRA Online Research
Equity MFs see net infusion of
Rs. 12,754 cr in Q2FY17
Mutual funds have been net buyers of equities for all the six months of FY17 due to higher retail participation
Net inflows were Rs. 22,233 crore in H1FY17 compared with Rs. 53,666 crore in the same period last year. Lower net
inflows could be attributed to higher redemptions due to a volatile equity environment
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-5,000
0
5,000
10,000
15,000
Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16
In R
s. C
rore
Equity Netflow
Source: AMFI, ICRA Online Research; Equity includes ELSS funds as well
SECTOR UPDATE
Section III
Sectoral update
Top five sectors constituted almost 64% of the total
equity AUM
Highest inflow was seen in Paper (25%) and Healthcare
services (21%) sectors
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Financial Services continued to be the most preferred
sector with more than 28% of the equity AUM invested
During the quarter, the sector witnessed more than 12%
increase in inflow
Source: AMFI, ICRA Online Research
0.00
30,000.00
60,000.00
90,000.00
120,000.00
150,000.00
Sep-16 Jun-16 Sep-15
Eq
uit
y A
UM
(In
Rs.
Cro
re)
Top 5 Sectors - Equity Exposure
Financial Services Automobile Energy Consumer Goods IT
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
ICICI
Prudential
Mutual Fund
HDFC
Mutual Fund
Reliance
Mutual Fund
Birla Sun
Life Mutual
Fund
SBI Mutual
FundEq
uit
y A
UM
(In
Rs.
Cro
re)
Equity Exposure of Top 5 AMC's in Top 5
Sectors (as on Sep'16)
Financial Services Automobile IT Energy Consumer Goods
CATEGORY PERFORMANCE
Section IV
Equity funds continued to deliver positive returns
Average returns across the categories outperformed average benchmark return across various time horizons.
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13
.19
25
.87
16
.89
12
.37
12
.05
11
.33 13
.88
10
.20
25
.49
14
.60
12
.44
12
.65
25
.01
16
.90
11
.40
9.5
5
15
.65
12
.45
8.5
6
0.00
5.00
10.00
15.00
20.00
25.00
30.00
1 Year 3 Year 5 Year 10 Year
Ret
urn
s (i
n %
)
Performance of Equity oriented Mutual Fund categories
Diversified Funds Global Funds Sector Funds ELSS Index Funds
Source: ICRA Online Research; Data as/of 30th September 2016
Greater than or Equal to 1 year Compound Annualized returns
Debt funds performed well due to comfortable liquidity situation
Fall in yields along with ease in liquidity and expectations of a rate-cut by RBI played supportive role for long-term
tenure papers
Fall in small savings rate can boost debt mutual funds, specially, fixed maturity plans (FMPs)
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6.7
6
7.3
2
7.4
7
8.2
3
9.0
2
8.9
4
8.3
9
8.6
7
11
.34
9.4
7
9.6
2
0.00
3.00
6.00
9.00
12.00
3 Months 6 Months 1 Year 3 Year
Ret
urn
s (i
n %
)
Performance of Short Term Debt oriented
Mutual Fund categories
Liquid Funds Ultra Short Term Funds Short Term Funds
Source: ICRA Online Research; Data as/of 30th September 2016
Less than 1 year Simple Annualized returns, Greater than or Equal to 1 year
Compound Annualized returns
9.6
9
10
.42
9.5
5
7.9
9
10
.96
11
.64
9.9
8
8.2
0
0.00
3.00
6.00
9.00
12.00
1 Year 3 Year 5 Year 10 Year
Ret
urn
s (i
n %
)
Performance of Long Term Debt oriented
Mutual Fund categories
Income Funds Gilt Funds
Source: ICRA Online Research; Data as/of 30th September 2016
Greater than or Equal to 1 year Compound Annualized returns
INDUSTRY INSIGHTS
Section V
B15 locations generate 17% of industry AUM in Sep 2016
Activity beyond the top 15 cities (referred to as B-15)
has increased in recent years, which indicates
expansion of the investor base. Improved distribution
and regulatory changes to the fee structure have helped
in increasing participation in smaller places
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28%
50%
72%
50%
0%
20%
40%
60%
80%
100%
T15 B15
In %
Higher equity participation in B-15 cities (As on Sep-16)
Equity Oriented Scheme Debt Oriented Scheme
90%
76%
10%
24%
0%
50%
100%
T15 B15
In %
24% of the B15 assets are from individual category
Institutions Individuals
1,377,840
1,087,770
273,612 205,862
0
400,000
800,000
1,200,000
1,600,000
Sep-16 Sep-15
In R
s. C
r
The rate of growth in assets for B15 locations is 33% Y-o-Y
T15 B15
Source: AMFI
Instrument allocation pattern in debt segment
Source: ICRA Online Research
ICRA Online Limited 18
43
.49
21
.15
18
.60
13
.14
5.8
1
-2.1
9
39
.28
24
.09
17
.65
13
.64
6.1
9
-0.8
6
39
.26
21
.73
21
.12
14
.59
5.4
7
-2.1
7
-10.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Bond/Debentures CP Gilt CD Others Cash & Equivalents
In %
Sep-16 Jun-16 Sep-15
Average maturity goes below FY16 levels
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0.00
5.00
10.00
15.00
20.00
Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16
In Y
ears
Average Maturity trends in Income, GILT-long term & GILT-short term funds
Average Maturity_Income Funds Average Maturity_GILT LT Average Maturity_GILT ST
Liquidity analysis of last 12 months
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Sep-16 Aug-16 Jul-16 Jun-16 May-16 Apr-16 Mar-16 Feb-16 Jan-16 Dec-15 Nov-15 Oct-15
Equity 1.82 1.91 1.73 1.74 1.84 1.99 1.85 1.85 1.84 2.07 2.08 2.00
Speciality 0.05 0.04 0.05 0.04 0.06 0.06 0.04 0.04 0.04 0.04 0.04 0.04
Gilt 0.04 0.06 0.06 0.05 0.07 0.07 0.06 0.05 0.04 0.11 0.06 0.06
Liquid 16.98 18.85 20.07 19.02 20.31 20.96 13.61 21.66 19.38 18.84 19.17 18.64
Balanced 0.15 0.21 0.19 0.19 0.17 0.17 0.09 0.20 0.21 0.24 0.18 0.17
ETF 0.48 0.46 0.48 0.53 0.49 0.52 0.58 0.57 0.53 0.50 0.48 0.54
Fund of Funds 0.15 0.15 0.16 0.17 0.17 0.18 0.21 0.21 0.18 0.17 0.17 0.19
Dynamic/Asset
Allocation0.30 0.34 0.32 0.25 0.26 0.25 0.19 0.11 0.11 0.13 0.11 0.13
Debt 8.28 9.52 9.48 9.32 9.49 10.04 9.60 10.21 9.97 9.35 10.03 9.92
REGULATORY UPDATE
Section VII
Regulator remains pro-active during the quarter
SEBI sets new rules for
operation of Central KYC
records registry
SEBI directs AMCs to
appoint scrutinisers to review
rationale of voting rights
SEBI raises additional
exposure limits of MFs in
HFCs to 10%
SEBI to amend investment
adviser regulations
All mutual fund investors will now have to provide their mother's name and
proof of permanent address
The requirement became mandatory for new investors from Aug 1
SEBI said mutual funds should ensure that additional exposure to securities
issued by HFCs are rated AA and above, and these HFCs are registered with
the National Housing Bank
This move will provide active voice to retail investors on important
decisions of the AMCs
AMCs would be required to obtain certification from the scrutiniser on
voting reports being disclosed by them
In an attempt to restrict unregistered entities from offering investment
advisory services, SEBI will amend the SEBI Investment Adviser
Regulations, 2013
Post amendment, any entity providing investment advice would be brought
under the ambit of investment adviser regulations
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