Asset Managers: Prefer Track-record Over Turnaround

研报英文原文证据摘录

Asset Managers: Prefer Track-record Over Turnaround

Upper-mid performance tiers since CY25 vs previous years (2-3).Larger listed

AMCs' net equity flow mkt share has also been 100-400bps higher than the AUM market share,

while smaller peers lost share over last 6 months.

ICICI AMC's diversification holds it in good stead, others following suit. ICICI AMC has lower

contribution from top 5 equity schemes (54%) relative to 66-70% for larger peers. Further, ICICI

AMC also has lower exposure to small and mid-cap stocks at 24% vs 36%/ 48% for HDFC/

NAM, a function of its focus on multi-asset, and dynamic asset allocation categories. However,

peers also appear to be focusing on diversification with scheme concentration falling for all

other listed AMCs except NAM.

Reliance on large distributors remain. Despite rise in direct distribution of equity AUM, reliance

on national distributors remain (1/4th/1/5th of equity AUM). Distributors like NJ and Prudent

earn c.100bps from larger AMCs, and upto 130bps from smaller AMCs. This is 1.4-1.5x of

payouts to banks. Hence, supportive bank promoters could be a moat. We note AMCs with

lower dependence on large distributors and smaller schemes have higher net equity yield.

Larger AMCs stand out in profitability. ICICI and HDFC AMC have been consistently delivered

operating profit of c.36bps (as a % of AAUM), a function of their scale and operating efficiency.

NAM's operating profit of c.26bps despite lower than peers has been steady as revenue yield

decline has been offset by operating deleverage. Amongst smaller AMCs, decline in active

equity mix has been a headwind for ABSL and UTI's revenue yield. Canara Robeco despite its

higher active equity mix in AUM (c.90%) has lower revenue yield relative to peers as its net