IIFL WEALTH AND ASSET MANAGEMENT - Quarterly Performance Review - Q1 FY 20 August 2019 - IIFL Wealth ...
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IIFL WEALTH AND ASSET MANAGEMENT
Quarterly Performance Review – Q1 FY 20
August 2019
Strictly Private and Confidential - Internal Circulation Only
A LEADER IN WEALTH MANAGEMENT & ALTERNATES
#1 Wealth Manager in India #1 Manager of Alternates in India
WEALTH MANAGEMENT ASSET MANAGEMENT
• Discretionary • Alternate Investment Funds
• Non Discretionary • Discretionary Portfolio Management
• Broking and Distribution Services • Mutual Funds
• Corporate Advisory & Custody Services • Global Asset Management
AUM: Rs. 134,506 Cr. AUM: Rs. 22,339 Cr.
ENABLERS Credit Solutions Trust Advisory Corporate Finance
33CONTENTS
Quarterly Performance Highlights
Business Overview
Shareholding Pattern &
Update on Listing timelines
3QUARTERLY PERFORMANCE HIGHLIGHTS 4
BUSINESS SUMMARY
FY 20 Q1 FY 19 Q4 FY 19 Q3 FY 19 Q2 FY 19 Q1 FY19
Closing AUM
Recurring Revenue Assets 63,530 58,270 52,907 45,561 45,021 58,270
Transactional / Brokerage Assets 97,930 97,220 95,661 94,197 88,179 97,220
Total AUM 161,460 155,490 148,568 139,758 133,200 155,490
Less: Double Counted Assets 19,149 18,889 18,534 19,541 18,674 18,889
Net Total AUM 142,312 136,601 130,034 120,217 114,527 136,601
Net Revenues 217 245 232 295 294 1,067
Recurring Revenues 129 125 116 103 100 444
Brokerage Income 82 84 59 38 40 221
Transactional Income 0 36 44 127 151 359
Other Income 6 1 13 27 3 44
Retention on 0.62% 0.74% 0.74% 1.01% 1.03% 0.86%
Recurring Revenue Earning Assets basis avg AUM 0.84% 0.90% 0.94% 0.91% 0.88% 0.87%
Transactional / Brokerage Assets basis Gross Flows 0.44% 0.51% 0.83% 0.67% 0.83% 0.69%
Costs 127 118 129 141 143 530
Employee Costs 81 60 79 94 104 337
Fixed Employee Costs 78 85 78 69 74 307
Variable Employee Costs 2 (25) 0 25 30 30
Admin and Other Expenses 46 58 50 46 39 193
Profit Metrics
Profit before Taxes (PBT) 90 128 103 155 151 537
Profit After Tax (PAT) 61 84 75 108 117 384
Effective Tax Rates 32% 34% 22% 35% 28% 30%
Cost to Income Ratio 58% 48% 56% 48% 49% 50%
ROE 8% 12% 11% 16% 21% 16%
ROE Ex Goodwill & Intangibles 9% 13% 11% 16% 21% 17%
5CONSOLIDATED FINANCIALS
QUARTERLY TREND
Rs in Crs. Q1 FY 20 Q1 FY 19 Y-o-Y % Q4 FY 19 Q-o-Q %
Recurring Revenues 129 100 29% 125 3%
Transactional / Brokerage Income 82 191 -57% 120 -31%
Other Income 6 3 144% 1 810%
Net Revenues 217 294 -26% 245 -12%
Less - Employee expenses 81 105 -22% 60 36%
Less - Other Operating expenses 44 38 15% 58 -23%
Less - Amortization of Intangibles 1 0 0% 0 273%
Total Expenses 127 143 -11% 118 8%
Profit before Tax 90 151 -40% 128 -29%
Taxation -29 -41 -31% -44 -35%
Profit for the Period 62 110 -44% 84 -27%
Other Comprehensive Income (OCI) -1 0 0
Deferred tax impact on OCI 0 0 0
Total Comprehensive Income (after tax) 61 110 -45% 84 -28%
Add : FCTR OCI Impact 0 7 -0
Profit After Tax after FCTR 61 117 -48% 84 -27%
Key Ratios
Cost to Income Ratio 58% 49% 48%
ROE 8.3% 21.0% 11.6%
Earning Per Share- Basic (Rs ) 7.23 13.67 9.82
Earning Per Share- Diluted ( Rs ) 7.03 13.19 9.54
6CONSOLIDATED BALANCE SHEET
Rs in Crs.
ASSETS As at Jun 30, 2019 LIABILITIES AND EQUITY As at Jun 30, 2019
1 Financial Assets 1 Financial Liabilities
(a) Cash and cash equivalents 188 (a) Derivative financial instruments 227
(b) Bank Balance other than (a) above 135 (b) Payables 231
(c) Derivative financial instruments 115 (c) Debt Securities 3,815
(d) Receivables (d) Borrowings (Other than Debt Securities) 2,694
(I) Trade Receivables 261
(II) Other Receivables 338
(e) Loans 4,880 (e) Subordinated Liabilities 570
(f) Investments 4,256 (f) Other financial liabilities 297
(g) Other Financial assets 51 Finance Lease Obligation 41
2 Non-Financial Assets 2 Non-Financial Liabilities
(a) Inventories - (a) Current tax liabilities (Net) 63
(b) Current tax assets (Net) 32 (b) Provisions 9
(c) Deferred tax Assets (Net) 37 (c) Deferred tax liabilities (Net) 27
(d) Investment Property - (d) Other non-financial liabilities 15
(e) Property, Plant and Equipment 298 3 Equity
(f) Capital work-in-progress 3 (a) Equity Share capital 17
(g) Intangible assets under development - (b) Other Equity 2,955
(h) Goodwill 188 (c) Non-controlling interest
(i) Other Intangible assets 93
Right to use 40
Other non-financial assets 42
Total Assets 10,960 Total Liabilities and Equity 10,960
7CONSOLIDATED METRICS YoY
Assets Under Management (Rs. Cr.) Excluding Custody Net Revenues (Rs. Cr.) & Yields (%) • Assets continue to grow at a
steady pace. Assets under
Transactional / Brokerage Income Earning Assets Annual Recurring Revenue Other Income management grew 4.18%
Annual Recurring Revenue Earning Assets Transactional / Brokerage Income Overall Yield
1400
on an absolute basis (QoQ)
Less: AMC Assets distributed by wealth + Loan Assets double counted 1.08% 1.05%
to Rs 1,423 Bn.
136,601 142,312 1200
0.92% 1,067
1,043
14 44
112,416
1000
0.86%
• Change in revenue
786
recognition implemented
85,902 97,930
800
97,220 78 579 0.62%
662 from 1st April 2019 . All
86,091 509
distribution commissions
600
59,272
68,540 45 469
400
are now accounted on an
43,361 356 217 annuity basis.
58,270 63,530 367 444
6 82
200
29,852 44,852 239
21,144 108 129
(12,490) • This change will make
0 0.00%
(5,233) (18,526) (18,889) (19,149)
FY16 FY17 FY18 FY19 FY 20 Q1 FY16 FY17 FY18 FY19 FY 20 Q1 revenues less volatile and
more predictable in the
Profitability (Rs. Cr.) Cost Mix (Rs. Cr.) future years and will result
in a much stronger business
24.0% 19.0% 22.0% 16.2% 8.3% 55.5% 51.1% 54.2% 49.7% 58.5% model.
RoE % PAT (Rs Crs)
384 Cost to income ratio 566
369 • Focus is on growing assets
600
Admin and Other Expenses 530
500
170 with Recurring Revenues
Employee Costs
264 400
401 193 (Fees and Trail
122
commissions). In Q1 FY 20
282 these assets have grown
169 300
200
90
396 ~10% despite challenging
337 127 market conditions.
61 279
100
192 46
81
0
FY16 FY17 FY18 FY19 FY 20 Q1 FY16 FY17 FY18 FY19 FY 20 Q1
1. Net Revenues are calculated after setting of all direct operating and financing costs
8 2. Cost to income ratios have been calculated basis Net Revenues
3. Yield = Current year Net Revenue /Avg. of current year Assets and Previous year assets ( Excluding custody Assets)CONSOLIDATED METRICS QoQ
Assets Under Management (Rs. Cr.) Excluding Custody Net Revenues (Rs. Cr.) & Yields (%) • Annual Recurring Revenues
(ARR) remain strong –
Transactional / Brokerage Income Earning Assets Annual Recurring Revenue Other Income
Transactional / Brokerage Income Yield growing 29% on a YoY
Annual Recurring Revenue Earning Assets 500
Less: AMC Assets distributed by wealth + Loan Assets double counted 1.03% basis and 2.9% on a QoQ
1.01%
450
142,312 basis. This continues to be
130,034 136,601 400
114,527
120,217
0.74% our key focus area.
0.74%
350
300
294 295 0.62%
97,930 3 27 245 • Reduction in revenues are
95,661 97,220 250
232 1 217
88,179 94,197 13 6 primarily due to lower
200
191 165 120
150
103 82 transactional income, no
100
upfront recognition and
52,907 58,270 63,530 125 129 weak capital markets.
45,021 45,561 50
100 103 116
(18,889)
0 0.00%
(18,674) (19,541) (18,534) (19,149) • Retention of clients and
FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
RMs continues to be strong
Profitability (Rs. Cr.) Cost Mix (Rs. Cr.) – Churn of assets remains
below 2% p.a. and RMs
25.0% 19.6% 22.0% 17.2% 9.2% 48.6% 47.6% 55.6% 47.9% 58.5% below 4% p.a.
RoAE Ex Goodwill & Intangibles % PAT (Rs Crs) Employee Costs Variable Employee Costs
Admin and Other Expenses Cost to income ratio
• We continue to focus on
117
108
160
143 118 rationalizing costs and
141
84
140
129 127 improving productivity –
39 46
75 58 Cost Q1 have reduced by
120
50 46
11% on a YoY basis and 8%
100
61 30
80
25 2
60
on a QoQ basis (excluding
74 78 85 78 impact of Bonus Provision
69
40
20 reversals in Q4 FY 19).
0
(25)
FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1 -20
-40
FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
1. Net Revenues are calculated after setting of all direct operating and financing costs
9 2. Cost to income ratios have been calculated basis Net Revenues
3. Yield = Current year Net Revenue /Avg. of current year Assets and Previous year assets (Excluding custody Assets)CONSOLIDATED METRICS QoQ
Recurring Revenue Assets (Rs. Cr.) Recurring Revenues (Rs. Cr.)
PMS - Discretionary / Non-Discretionary & Advisory Fees on PMS - Discretionary / Non-Discretionary & Advisory
Funds Managed by IIFL AMC Management Fees on Funds Managed by IIFL AMC
Mutual Funds Trail Commission on Mutual Funds
Managed Accounts 63,530 Trail Commission on Managed Accounts
58,270 4,615 125 129
Loans 52,907 4,798 4,814 ROA on Loans 116
45,021 45,561 4,748 4,736 100 103
2,895 61
5,632 6,191 21,456 61
2,547 2,325 19,249 60
21,938 48 53
18,928 18,393 8 8
22,339 6 5 7 22
20,773 27
18,451 25 24 25
16,187 16,353 23 31
8,714 10,306 18 19 19
1,727 2,299 4,875 2 2 4 6 7
FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
Transactional / Brokerage Assets (Rs. Cr.) Transactional / Brokerage Revenues
Direct Stocks Mutual Funds Direct Stocks Commission on Mutual Funds
Structured Notes & Bonds Managed Accounts Structured Notes & Bonds Commission on Managed Accounts
Other Brokerage / Syndications Carry Income / One time Income
94,196 95,660 97,220 97,930
88,179 191
17,286 18,936 18,069 18,309 165
16,780 27
2
33,966 32,074 35,764 33,413 120
29,791 99 94 103 7
11 26 82
13,738 15,629 13,834 15,812 17,061 32 2 2
16 29
26 31
27,870 27,315 30,816 27,575 29,147 12 8 48 2 63 47
13 19
14 11 8 4 6
FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
1. Recurring Revenues for FY 20 Q1 already reflects a Rs 5 crs reduction in Mutual fund revenues due to TER reduction
10CONSOLIDATED METRICS BY BUSINESS SEGMENT
Assets Under Management - YoY (Rs. Cr.) Assets Under Management - QoQ (Rs. Cr.)
Wealth Mangement Wealth Mangement Asset Management
167,746 1,73,245
Asset Management AMC Assets Distributed by Wealth Custody Assets
31,145 30,933 1,59,169 1,67,746 1,73,245
AMC Assets Distributed by Wealth
130,981 1,43,705 31,145 30,933
Custody Assets 20,773 22,339 1,39,764 29,136
18,564 23,488 22,339
25,237 18,451 20,773
94,919 13,395 16,353
16,187
9,017
8,939
62,164 2,892
1,29,919 1,34,506
1,10,833 1,25,369 1,29,919 1,34,506
5,455 1,11,381 1,17,214
85,839
59,049
(5,233) (8,875) (11,811) (14,091) (13,041) (13,350) (13,786) (14,091)
(14,534) (14,534)
FY16 FY17 FY18 FY19 FY20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY20 Q1
Profitability FY16 FY17 FY18 FY19 FY 20 Q1 Asset Allocation %
Wealth Management
Debt Equity Real Estate
Revenue 451 691 930 919 179 5% 5% 3% 3% 3%
94,196 95,660 97,220 97,930
88,179
Costs 240 338 474 427 101
46% 45% 53% 48% 48%
PBT 211 353 456 492 78
Asset Management
Revenue 58 95 113 148 38 49% 50% 49% 49%
44%
Costs 45 63 92 103 26
PBT 15 32 21 45 12 FY 16 FY 17 FY 18 FY 19 FY 20 Q1
1. Costs include allocated costs that have been split between the Wealth and Asset Management verticals on the basis of a formula that gives 50% weightage to Net Revenues & 50% weightage to
11 EmployeeCostsWEALTH MANAGEMENT
AUM by Products YoY (Rs. Cr.) AUM by Products QoQ (Rs. Cr.)
Discretionary / Non Discretionary PMS
160000
Mutual Funds Managed Accounts 0.011
Discretionary / Non Discretionary PMS Mutual Funds Managed Accounts
Equity Stocks Structured Notes and Bonds Yield (%)
Equity Stocks Structured Notes and Bonds Yield (%)
134,506
1,60,000 1.00%
129,919 0.94%
140000
0.95% 0.89% 134,506
0.009
0.95% 17,061 129,919
0.90%
15,812
1,40,000
120000
110,833 110,833
0.82% 117,215 17,061
0.80%
0.76% 1,20,000
111,381 13,834 15,812
17,771 29,147
0.007
100000
27,575 15,629
0.70%
85,839 13,738 27,575 29,147
30,816
1,00,000
0.60%
18,898 25,524 23,122 0.54% 27,870 27,315 0.66% 0.54%
22,805
80000 0.005
0.64%
59,049 22,805 23,122
80,000 0.50%
60000
17,425 17,708 19,612 21,832
19,327
0.40%
17,115
60,000
0.003
12,015 0.30%
8,967 55,012 54,869
40000
55,012 54,869
40,000
6,757 48,164 52,360 54,012 0.20%
48,719
0.001
20000
37,214
26,136
20,000
0.10%
1,666 8,714 10,306 1,727 2,299 4,875 8,714 10,306
0
74 287 -0.001 0 0.00%
FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
Net Revenues by Products YoY (Rs. Cr.) Net Revenues by Products QoQ (Rs. Cr.)
Discretionary / Non Discretionary PMS Mutual Funds Managed Accounts Equity Stocks Discretionary / Non Discretionary PMS Mutual Funds Managed Accounts Equity Stocks
1200
Structured Notes and Bonds ROA on Loans Other Brokerage / Syndications Other Income Structured Notes and Bonds
300
ROA on Loans Other Brokerage / Syndications Other Income
269
931 247
1000
919 22
12 1 8 204
250
46 23
36
53 199
800
206 48 13 179
691 222 10
200
40 67 13 19 2 61
28 67 14 11 60 29
110 143
600
150
451
113 38 61
45 47 104 99 48 63
63 387
400
0
100
119 276 8 4
205 179 6 47
38 39 34
55 29
200
6
50
61 8 52 55 8
131 148 176 163 47 27 29 22
1 18 7 22 2 2 9 7
4 4 (10)
0
-22
-
-1 (1)
FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
-200 (50)
1. Yield = Current year Revenue /Avg AUM. (Current year AUM / Previous year AUM)
12ASSET MANAGEMENT
AUM by Products YoY (Rs. Cr.) and Yield % AUM by Products QoQ (Rs. Cr.) and Yield %
1.3%
25,000 1.6% 25,000 1.4%
1.4% 22,339
1.3% 20,773 1.4%
1.2%
20,000
4,511 20,000
4,511
3,625 3,625
Discretionary Portfolio Management Schemes
1.2%
1.0% 1,329 2,557 1,329
1.0%
Mutual Fund 1,486 1,314 1,277 1,486
0.8%
1.0%
13,395 1669.67
15,000
Alternative Investment Fund
15,000
1451.36 1399.39
0.8%
758 0.6% 0.9% 0.7%
Yield (%) 0.7%
0.8%
901 0.9%
8,939
0.6%
10,000 10,000
598
0.6%
15,661 16,499 15,661 16,499
5,455 625 13,676 14,225 0.4%
11,736
0.4%
13,422
5,000
866 5,000
492 7,715 0.2%
0.2%
4,097
0 0.0% - 0.0%
FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
Net Revenues by Products YoY (Rs. Cr.) Net Revenues by Products QoQ (Rs. Cr.)
Alternative Investment Fund 148 Alternative Investment Fund Carry / One Time Incomes
Mutual Fund Mutual Fund Discretionary Portfolio
Discretionary Portfolio Management Schemes
21 46 Other Income Management Schemes
1 41
Other Income 113 16 2
2 38
8
95 34 11
36 7
4
12 5 27 26 4 4
38 7
58 3 4 5 2
2 1
103 3 11
2 7
2 2 38 2
68 7 26
54 52 4 1 14 14 13 14
26
FY16 FY17 FY 18 FY 19 FY 20 Q1 FY 19 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 20 Q1
1. Carry Income: Revenue earned as performance fees at the maturity of a fund, or at the end of a defined period as agreed with clients / investors.
13 2. Yield = Current year Revenue /Avg AUM. (Current year AUM / Previous year AUM)BUSINESS OVERVIEW 14
WHO ARE OUR CLIENTS?
Profile What we do for them?
• HNI & UHNIs with Net worth > Rs 25 Crs • Create an Investment Policy Statement (IPS):
✓ Understand: Client’s needs and objectives
• Typically can be divided into ✓ Construct: Portfolio Asset Allocation and rules
✓ First Generation Entrepreneurs aligned to client goals
Wealth
✓ Owners of large family run businesses ✓ Review: Set up cadence for revisiting allocations
✓ Senior Professionals (CXO)
• Standardized Portfolio Management Approach and
✓ Family Offices & Institutions unwavering Focus on Process
• Goal: Capital Preservation with inflation plus 2 -
• Continuous Innovation & Transparent Pricing
2.5% returns and low volatility
Accredited Investors • Offer differentiated products to access unique growth
• Opportunities.
Management
• Global Institutional investors, including endowment
• Dual capabilities in onshore and offshore asset
Asset
and pension funds
management.
• Family offices
• Diversified suite of bespoke alternative investment
funds, Portfolio Management Schemes & Mutual
funds, spanning public and private equities, fixed
income securities and real estate.
15 • Pool risk with the client (Co-invest)CLIENT ENGAGEMENT – EVOLUTION TOWARDS FEE FOR ADVICE MODEL
As a Distributor As an Advisor
✓ Our engagement with clients has
(Broker/ Dealer) (RIA/PMS)
always been advisory in nature
Levels of Client Engagement
under an open architecture model
DISCRETIONARY
ACTIVE ADVICE SERVICES
PRODUCT IIFL-ONE ✓ This approach provides for
Pioneer in creating builds on the
EXPERTISE Leader in multi-asset diversification of assets, with choice
process-led advisory, discretionary wealth best of all
built on a strong
Award-winning
in-house investment
management adopting engagement of multiple managers for
Product innovation global best practices models
counselling practice
combined with scale investments
of INR 1.6 trn. AUM
! ✓ Traditional revenue model has been
as a Distributor, with major part
from manufacturers
Fees from ✓ IIFL ONE is our endeavor to move
clients clients and revenues to an advisory
fee model
Revenue Model
✓ Provides deeper client
Commission
engagement
from
Manufacturer Greater stickiness of
✓
relationships and better share
of wallet
Transaction
Charges ✓ Greater alignment of interest
16 ALIGNMENT of INTERESTWHY IS IIFL WEALTH BEST POSITIONED TO WIN
PEOPLE TALENT ACQUISITION TALENT DEVELOPMENT TALENT RETENTION
Strong platform has attracted Continuous learning through Employee equity ownership,
Wealth management is a high quality talent. Over 300 RMs, ongoing one-on-one mentorships strong internal culture has led to
personal interface driven business mostly from varied competing and group engagements probably the lowest attrition rates
firms. in the industry at 4% for
Teamleaders
PROPOSITION OPEN ARCHECTECTURE MULTIPLE ENGAGEMENT DIVERSIFICATION ACROSS
LEVELS ASSET CLASSES
Ability to offer full scale wealth Multi Manager Platform and Clients can segregate and manage Ability to generate steady state
management services rigorous and unbiased their portfolios through various returns above inflation with the
manufacturer selection modes of engagement least volatility and risk
simultaneously.
PLATFORM STRONG SUPPORT TEAMS CUTTING EDGE TECHNOLOGY ENABLERS
Large Investment and Product • Client Portfolio Reporting • Credit solutions
Comprehensive suite of products teams provide innovation & high
• In Depth Analysis • Trust advisory
and services quality support.
• Data Aggregation • Corporate Finance
PROCESS PORTFOLIO MANAGEMENT STRONG BUSINESS AUTOMATION
APPROACH INTELLIGENCE & TRACKING
Portfolios are managed in line with Constant review and tracking of Strong technology and internal
Stringent standardized control
mechanisms defined Investment Policy liquidity events lead to high processes to ensure seamless and
Statements and are constantly conversion ratio efficient execution
monitored
PRICING PIONEER IN ADVISORY LED COMBINED PLATFORM ALLOWS ECONOMIES OF SCALE
MODELS ALL-IN FEE MODEL
Transparency and alignment of First to market with a pure fee for In-house brokerage and allied Scale enables attractive pricing of
interest advice model: IIFL-ONE services allow for All-In Fee products from a client perspective
models
17BRAND: AWARDED & RECOGNIZED ACROSS ALL LEADING PLATFORMS
BEST FAMILY OFFICE SERVICES BEST DIGITAL WEALTH
MANAGEMENT EXPERIENCE -
BEST SUCCESSION PLANNING 2017
ADVICE AND TRUSTS
BEST PRIVATE BANK , BFSI BEST BRANDS 2017
INDIA 2018 PRIDE OF ASIA
18KEY GROWTH DRIVERS
PERSPECTIVE IIFLW APPROACH
• Clients typically mandates IIFLW to grow their wealth at a steady rate above inflation with the
Capital Preservation over least possible volatility
wealth creation • Achieved through diversification of asset classes, multiple fund managers and open architecture
model
• IIFLW has 2.5% client attrition & 96% Senior RM retention ratio. This results in a virtuous cycle
High customer lifetime value which leads to increasing AUM from clients on a YoY basis
Globally WMs are moving to • IIFLW launched IIFL One, a pure advice for fee model for its clients in the latter half of FY 19. It
charging clients directly enables complete alignment of interest on the management of the portfolio and on the pricing.
• AUM has already reached 8,000 crs.
Commoditization of products • As an Asset Manager the commoditization of existing products results in an opportunity for
has increased the premium and focused, innovative and differentiated strategies to be launched by niche managers such as IIFL
the responsibility on advice AMC and allows us build market share in the alternative strategies space.
Continued Monetization of • Massive growth of wealth creation specifically in Tier 2 / Tier 3 cities in India.
Businesses by Promoters /
Entrepreneurs • Continuous expansion by hiring aggressively in new geographies
• Downward pressure on commissions & high operation costs has presented opportunities for
Consolidation within the consolidation with small / medium sized players
Industry • IIFLW acquired Wealth Advisors, a boutique Wealth Management business in FY19. Multiple M&A
opportunities are expected in the near future
• Implementation of best in class technology solutions with marque solution providers to
New technology & - Provide clients with seamless and best in class reporting and analytics
Digital led acquisition - Enhance Productivity and process controls
• May further use technology as a solution to penetrate the mass affluent market space.
19EXPERIENCED MANAGEMENT TEAM WITH DEEP DOMAIN EXPERTISE
Karan Bhagat
20+ years of experience
WEALTH AMC CORPORATE FUNCTIONS
Yatin Shah Anup Maheshwari Anshuman Maheshwary
24+ years of experience COO
16+ years of experience 20+ years of experience
Anirudha Taparia Prashasta Seth Himanshu Bhagat
20+ years of experience Unlisted Equity 18+ years of experience Strategy & IR 20+ years of experience
Vinay Ahuja Balaji Raghavan Pankaj Fitkariwala
19+ years of experience Real Estate 20+ years of experience Operations 15+ years of experience
Pramod Kumar Mehul Jani Mihir Nanavati
Listed Equity 15+ years of experience CFO
15+ years of experience 27+ years of experience
Mayur Patel Abhishek Chandra
Shaji Kumar Devakar
Listed Equity 14+ years of experience Technology
17+ years of experience 20+ years of experience
Jiten Surtani Pranob Gupta Anirban Banerjee
Structured Debt 16+ years of experience HR
15+ years of experience 15+ years of experience
Umang Papneja Viraj Mahadevia Pavan Manghnani
CIO 18+ years of experience Mid Market Fund 14+ years of experience Strategy & IR 20+ years of experience
Girish Venkataraman Jonathan Schiessl Ashutosh Naik
Trust Advisory 20+ years of experience Fund Manager 20+ years of experience Compliance 20+ years of experience
Himanshu Jain Amit Garg Niraj Murarka
NBFC Global Products Credit
17+ years of experience 15+ years of experience 20+ years of experience
Sandeep Jethwani Shashi Singh Raghuvir Mukherji
Client Advisory 15+ years of experience Sales 20+ years of experience Risk 24+ years of experience
Japhia Walker Himadri Chatterjee Ronak Sheth
Client Services 15+ years of experience Sales 15+ years of experience Events 18+ years of experience
20SHAREHOLDING PATTERN &
UPDATE ON LISTING
21MARQUEE INSTITUTIONAL SHAREHOLDING AND EXPERIENCED BOARD
Shareholding Pattern
21.87% 0.41%
18.96% 0.35%
RIMCO 4.46% Promoters 24.69%
3.19% Employees 9.15%
1.28% Others 15.63%
Board of Directors
Name & Designation Previous Experience Name & Designation Previous Experience
Nirmal Jain Sandeep Naik
Non Executive Director 30+ years of experience Nominee Director 20+ years of experience
R. Venkataraman Shantanu Rastogi
Non Executive Director 20+ years of experience Nominee Director 15+ years of experience
Karan Bhagat Nilesh Vikamsey
Founder, MD & CEO 18+ years of experience
Independent Director 30+ years of experience
Yatin Shah Geeta Mathur
Co-Founder & Executive Director 16+ years of experience Independent Director 25+ years of experience
S Narayanan Former Fin. Secy, Former
Independent Director Economic Advisor to PM
1. Share holding Pattern is represented as on the record date – 31st May 2019
22 2. * Promoters lock in is 3 years against 1 year for othersUPDATE ON LISTING – PROCESS AND TIMELINES
Listing Procedures Completed
Sr Particulars Date Completed
1 Demerger Effective; March 15, 2019
2 Record Date for allotment of shares; May, 31, 2019
3 Allotment of Shares under the Scheme; June 6, 2019
4 Listing application filed with Exchanges; July 6, 2019
5 In-Principle approval received from Exchanges; August 21, 2019
Listing procedures in Progress – Expected Listing in 2 - 3 weeks
1 SEBI Approval
2 Issue of Public Advertisement in New Papers
3 Filing of Final IM with Exchange
4 Obtaining of listing approval from Stock exchanges
5 Commencement of Trading at Stock exchanges
23DISCLAIMER
This document is for the personal information of the authorised recipient(s) and does not construe to be an offer or solicitation of an offer to buy/sell
any securities. It does not construe to be any investment, legal or taxation advice or recommendation in relation to holding, purchasing or selling
securities or other financial products or instruments in any jurisdiction. The documents is not for public distribution and should not be reproduced or
redistributed to any other person or in any form without IIFL Wealth Management Limited (IIFLW) prior permission.
It is not directed to, or for any use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction,
where such distribution, publication, availability or use would be contrary to local law, regulation or which would subject IIFLW to any registration or
licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain
category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restrictions.
Any action taken by you on the basis of the information contained herein is your responsibility alone and IIFLW and its subsidiaries and affiliates or
their respective employees or directors will not be responsible or liable in any manner for the consequences of such action taken by you. IIFLW or any
of its subsidiaries or associates or their respective directors or employees shall not be in any way responsible for any loss or damage that may arise to
any person from any inadvertent error or omission in the information contained in this document. The recipients of this document should rely on their
own investigations or advisors. IIFLW and/or its subsidiaries and/or its affiliates and their respective directors or employees may have interests or
positions, financial or otherwise, in the securities mentioned in this document.
The information contained herein has been prepared to assist interested parties in making their own evaluation of IIFLW and while reasonable
endeavours have been made to present reliable data so far as it relates to current and historical information does not purport to be complete or to
contain all information that a prospective investor may desire or that may be required in order to properly evaluate the business, prospects or value of
IIFLW. In all cases, interested parties should conduct their own investigation and analysis of IIFLW and the data set forth in this document. The
information and opinions contained in this document are provided as at the date of this document and are subject to change without notice. We do not
undertake responsibility to update any information contained herein. Securities investments are subject to market risks. As with any securities
investment, the value of a security can go up or down depending on the factors and forces affecting the capital markets. In considering the prior
performance information contained in this document, prospective investors are reminded that past performance is not necessarily indicative of future
results, and there can be no assurance that IIFLW and its subsidiaries will achieve comparable results. Therefore, prospective investors should not
place undue reliance on such prior performance information. By receiving a copy of this document, you agree to be bound by the provisions contained
herein. Any industry data and statistics have been obtained or derived from IIFL Wealth Management Limited and published industry sources or
publicly available information. Any forward looking statement or information given is based on management’s current estimates and internal goals
and is subject to change. The actual performance can be materially different. Therefore, the accuracy or completeness of these expectations cannot be
guaranteed.
All Data and Performance numbers as shown in this presentation are pre acquisition of IIFL Media & Research Limited (IMRL) pursuant to the
composite scheme of arrangement. IMRL data has not been considered in the data displayed in this presentation
24THANK YOU.
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