Understand the underlying portfolio composition of fixed income investments such as liquid funds and dynamic bond funds. Also, get details into the fund objective and the process of investment
management institution across the 4 major asset classes: equity, fixed income, real estate, infrastructure: Steady growth in assets, disciplined approach attracting clients ➢ Need for multiple asset classes to reduce the business risk of being dependent on any ONE product: India is not mainstream - huge volatility in valuations and client interest ➢ 1990 to 2004: investment processes refined by affiliation with international groups ➢ 2004 to 2008: invested in people ➢ 2004 to 2008: incubated teams to diversify business risk ➢ 2008 to 2009: invested in world-class systems ➢ 2010 onwards: maintaining our focus and discipline; succession planning Group Update – The Past 25 Years
Fund completes 10-year track record • Quantum Long Term Equity Value Fund • Quantum Liquid Fund • Set up Quantum AMC • Quantum Gold Fund • Quantum Nifty ETF • Quantum Tax Saving Fund • Quantum Gold Savings Fund • India’s first fully paperless Online Investing Platform • Quantum Equity Fund of Funds • “Path to Profit” Launched • Quantum Multi Asset Fund of Funds • Quantum Dynamic Bond Fund • Transactions through Email, WhatsApp & Fax • Launch of Regular Plans • Quantum India ESG Equity Fund 2005 2006 2008 2009 2011 2012 2015 2016 2017 2019
(~INR 22,953 crore) as August 31, 2021 ➢Manages Indian equity investments for some of the largest institutions in the world, including Sovereign Wealth Funds, pension funds, endowments, and foundations ➢Currently registered as a Portfolio Manager with SEBI and other international regulators ➢Quantum Advisors is 50.8% owned by Mr. Dayal and the Management Team and 49.2% owned by HWIC Asia. HWIC Asia is ultimately promoted and wholly owned by Fairfax Financial Holdings Limited (“FFHL”). FFHL is listed on the Toronto Stock Exchange and is led by Mr. Prem Watsa, known as the Warren Buffet of Canada About our Sponsor– Quantum Advisors Pvt. Ltd.
launch of the Quantum Long Term Equity Value Fund ➢Quantum Mutual Fund was the 29th, but India’s 1st Fund house that started with a focus on a Low Cost Approach for investors ➢Simple range of funds: No confusion for investors ➢Disciplined Research and Investment Process: Team-driven, no “star” fund managers ➢Staying the course, no short cuts: Asset Managers, not Asset Gatherers ➢ Quantum MF AUM = Rs.2,034.30 Cr. as on 31st Aug 2021 ➢ Number of Folios: 72,896 as on 31st Aug 2021 About Quantum Mutual Fund
and manages portfolios of FIIs and Indian clients. Registered as Portfolio Manager with SEBI since 1997. It is led by Mr. I. V. Subramaniam (Subbu), who is the MD & Group Head (Equities) of the company. • Subbu joined Quantum in 1996 and has over 25 years of experience in the investment management and financial services industry. Since June 2000, Subbu has managed India-dedicated portfolios for Indian clients and since 2005, he has managed India-dedicated portfolios for international clients. Subbu received his Bachelor’s degree in commerce from Osmania University in 1983 and his Law degree from Osmania University in 1986. He is a CFA Charter holder. Subbu was born in 1962. Quantum Asset Management, India (QAMC) SEBI Registered Asset Management Company and Investment manager for Quantum Mutual Fund. It is led by Mr. Jimmy Patel, who is the MD & CEO of the company. • Jimmy Patel joined Quantum in 2010 and has over 3 decades of experience in the financial services sector, and has held various key management roles. Along with holding a Chartered Accountant’s degree, Mr. Patel has also completed his L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy was born in 1967. 100% subsidiary of QAS
AUM Quantum Mutual Fund SEBI Imposes Rule on MF Industry Refused to follow the opaque Entry Load Model Mar 2006 Jun 2009 Pioneered Direct to Investor, despite Slow Internet Speed and No Smart Phones Mar 2006 Jan 2013 One Scheme / product per asset class Mar 2006 Oct 2017 Exit Load swept into funds for the benefit of Unit Holders Mar 2006 Nov 2012 No Discrimination against Retail Investors Mar 2006 Sep 2012 Introduced the practice of following Total Return Index (TRI) as benchmark for Equity Fund Mar 2006 Jan 2018 Majority of Independent Directors on AMC Board Mar 2006 ? Path to Profit (Investor Education & Awareness Program) Aug 2009 Sep 2012 100% Independent Board of Trustees Oct 2010 ? Mark to Market valuation in Liquid Fund, irrespective of the maturity Jul 2012 April 2020 ZERO Upfront Distributor Commission and uniform trail commission across all partners on Regular Plan Apr 2017 Sep 2018 TER based on AUM Slabs Feb 2017 April 2019
3 decades of experience in the financial services sector, and has held various key management roles. Along with holding a Chartered Accountant’s degree, Mr. Patel has also completed his L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy was born in 1962. Rina Nathani Chief Business Officer (2020) Rina has over 20 years of experience in building businesses, advising companies and leading teams to successful outcomes. Prior to joining Quantum AMC, Rina was a Director in KPMG’s Advisory Practice in the US and Head – Retail Businesses at Suminter India Organics, India. She has done Masters in Management Studies from Jamnalal Bajaj institute of Management Studies (JBIMS). Rina was born in 1974. Malay Vora Head Legal & Compliance (2008) Malay Vora has more than 15 years of experience in Legal, Compliance and Corporate Secretarial matters in the financial service industry. He is a Commerce and Law Graduate and an Associate Member of Institute of Company Secretaries in India. Malay is the Head of Legal & Compliance and the Compliance Officer for Quantum AMC. He has been associated with Quantum since 2008. He has been a member of SEBI and AMFI Committee. Malay was born in 1977. Profile of Management Team - QAMC
than 18 years of experience in Financial Services and Market Research. He a Post Graduate in Marketing Management. He has Completed Medium and Small Scale Industries Management Development Program from NMIMS. Prior to Quantum AMC, he has been with ICICI Prudential and Birla Sunlife Insurance and has been instrumental in developing Rural Markets and New Initiatives, Process Quality, Loyalty Programs, R&R Initiatives. Rajendra Gadiyar Head Operations (2011) Rajendra brings with him more than 2 decades of experience in Operations and Fund Accounting in Mutual Funds and Insurance. Prior to joining Quantum, he was associated with various companies across Insurance, Asset Management and Investment Management sectors. Rajendra was born in 1968. Meera Shetty Head Investor Services (2006) Meera Shetty has almost two decades of experience in Investor Servicing. Before joining Quantum, she was associated with Edelweiss AMC, Principal AMC and UTI-TSL. She holds a degree in Commerce and is an MBA with dual specialization in Finance and Marketing. Meera was born in 1969.
experience in equity research as well as managing funds. At present he’s the Fund Manager for Quantum Long Term Equity Value Fund & Quantum Tax Saving Fund. He’s Qualified as a Chartered Accountant and has completed all the 3 levels of CFA. Sorbh brings with him a wealth of experience of having tracked varied sectors in his previous work assignments. Prior to joining Quantum, he was associated with Siddhesh Capital Private Ltd. Sorbh was born in 1980 Nilesh Shetty (2009) Nilesh has more than 17 years of experience in research. He has been a part of Quantum Asset Management Company since 2009, and at present is the Fund Manager for Quantum Long Term Equity Value Fund and Quantum Multi Asset Fund of Funds. Nilesh is a qualified CFA (Chartered Financial Analyst), ACMA (CIMA, UK) and has completed his Masters in Management Studies (Finance) from the Mumbai University. Nilesh was born in 1980 Sneha Joshi (2015) Sneha has over 8 years of experience in economic, credit and quantitative research. She holds a Ph.D. in Economics and has earned an M.A. in Economics from Gokhale Institute of Politics and Economics. She joined Quantum AMC in August, 2015. Prior to joining Quantum, she was associated with Credit Capital Research as a fixed income research analyst. Sneha was born in 1988 Hitendra Parekh (2004) Hitendra has close to 3 decades of experience in financial services industry. Prior to working with Quantum, he has been with the Unit Trust of India for 4 years and UTI Securities Ltd for 9 years. He has completed his B.Com & Masters in Financial Management from Mumbai University. Hitendra was born in 1968 Portfolio Team – Equity
Income Pankaj has over 11 years of experience in Fixed income investments and research. He joined Quantum Asset Management Company in August, 2013 and at present, is Fund Manager for Quantum Dynamic Bond Fund and Quantum Liquid Fund. Prior to joining Quantum, he was associated with Bank of Maharashtra. Pankaj holds a Post Graduate Diploma in Banking & Finance from National Institute of Bank Management, Pune and is qualified CFA Chirag Mehta (2006) – Gold/Commodities Chirag has 19 years of experience in the Indian commodities markets. He also specializes in the field of alternative investment strategies. He is a qualified CAIA (Chartered Alternative Investment Analyst), and has also completed his Masters in Management Studies in Finance. He currently manages funds largely in the field of alternative investments that includes Gold Fund, a Multi Asset Fund of Funds and an Equity fund of funds and is also a Fund Manager of Quantum India ESG Equity Fund. He joined the Quantum after gaining hands on experience in the physical commodities market during internship with Kotak & Co. Ltd and working on projects for the Federation of Indian Commodities Exchanges. Chirag was born in 1981 Ghazal Jain (2020) – Gold/Commodities Ghazal has over 4 years of experience in the field of finance and alternative investments including of Gold, Asset Allocation and Personal Finance & investment allocation. She has been with Quantum Asset Management Company since January, 2019. Prior to joining Quantum, she was associated with Fox Education LLP and Bahubali Electronics Private Limited
PEOPLE • Is there a clearly defined investment philosophy across all market situations or is this a ride-the-wave, “bull-market” manager? PHILOSOPHY • What is the research and investment process and how reliable is it? PROCESS • Given the process, is the performance as predictable as it should be? PERFORMANCE Criteria to Select a Good Fund House
SLR principle ▪ (Safety Liquidity Return) ➢Investment Objective is ‘True to Label’ ▪ Fund are managed with a clear mandate of suitability and objective ▪ Simple Products with simple asset allocation ➢Follow prudent risk management approach based on funds’ objectives ▪ No Private Corporate Credit Risks ▪ Portfolio Liquidity is a key objective ➢ Proprietary Research process & team driven portfolio investment process ▪ Top down Macro Research and Bottom up Credit Research ▪ Portfolio investment decisions are team based Please refer Scheme Information Document of the Scheme for complete Investment Strategy
Investment Strategy Top-Down Macro Investment Process GDP, inflation, monetary & fiscal policy and currency forecast the direction and the level of interest rates Credit Research, Market Research, Spreads and Liquidity Analysis The macro & micro analysis narrows down to a list of securities based on the investment objectives and risk parameters Maturity profile, credit profile and risk (duration, liquidity) profile Micro Analysis - company and instrument analysis Portfolio Construction Analysis of long term macro economic indicators
Investment Strategy Credit Research and Investment Process Company filtering based on sector, industry and peer aggregates Selection based on liquidity, yields, spreads and relative value Minimum Investment grade Credit rating analysis Company Analysis Portfolio Selection The macro & micro analysis narrows down to a list of buyable credits for portfolio selection. Proprietary credit analysis – qualitative management assessment, fundamental factors, Forecasts
cash by Individuals & Companies • Maintaining Contingency Funds • As portfolio stabilizer ➢ Objective • Preserve Capital • Create ample liquidity • Earn sensible returns (higher than Current & Saving Bank Account) Do not Invest in Liquid Funds for just returns; Aim to keep your money Safe & Liquid
generating sensible returns with high liquidity ➢ High Quality Portfolio – Investing only in government securities, treasury bills and top rated PSU debt ➢ No Private Credit – Not invested in private corporates ➢ Disciplined Asset Liability Management – portfolio is constructed in a way to maintain ample liquidity at all times ➢ Research Driven Process – Our research-driven process aims to perform across time horizons, interest rate cycles in varied economic environments
- QLF is one of the 1st Liquid Fund to follow full Mark- to-Market (MTM) of entire portfolio to determine fair value of the portfolio on daily basis. ➢ High Standard of Transparency - Follow weekly disclosure of portfolio along with market commentary ➢ Easy Access – Always ready to resolve Investors queries and have easy access to Fund Managers.
top down macro approach to determine rate outlook Use proprietary models on macro variables like – Inflation, Banking System liquidity to project path of monetary and fiscal policy Closely follow all the global developments which can influence the domestic interest rates and the Indian Rupee Bottom Up credit Research Process We do not just rely on external Credit ratings though it is used for filtering the investment universe Since 2012, we have only PSU companies having long term credit rating of “AA-” or above qualify for the investment universe Use proprietary credit review process to differentiate between good and bad credit quality companies even in PSUs
Liability Management Framework to maintain high liquidity at all times ➢The Fund endeavors to maintain over 25% of its Portfolio in overnight assets and/or treasury bills ➢The fund endeavors to invest in a manner that certain proportion of its assets mature within 15 days ➢The investment team grades investors based on its assessment of their holding period and matches short term investors with Cash and Treasury Bills investments
through active management of a portfolio Fund Features Invest across the debt maturity profile Manage portfolio duration based on market assessments Invested only in AAA PSU bonds, money market instruments and Government securities No Exit load and Low expense ratio
Focused • Active “Duration” management based on interest rate view Active Approach • Research driven and disciplined investment process Investment Process • Long term investment alternative, irrespective of market conditions All weather Fund • Conservative approach towards credit risk • Conscious monitoring to limit downside risk Risk Management Why Quantum Dynamic Bond Fund?
will maintain credit risk under check When Interest Rate is Expected to Fall • Invest in long term securities which are more sensitive to interest rate changes • Long maturity bonds gain more from falling interest rate • Focus on running maximizing capital growth When Interest Rate is Expected to Rise • Invest in short term securities to lower the portfolio’s sensitivity to interest rate changes • Short maturity bonds fall less from rising interest rate than longer maturity bonds • Focus on interest accruals and capital preservation
and modelling • Forecasting macro variables and policy actions • Yield curve and spread analysis • Market demand/ Supply assessment Portfolio Construction • Strategic Allocation based on long term macro forecast • Defining optimal portfolio duration • Yield curve positioning and Security selection • Allocation to credit spreads Portfolio Analysis • Weekly Portfolio review by Investment team • Performance measurement and attribution • Risk monitoring and reporting • Communication to investors
interest rate management through altering maturity profile at appropriate time • Investment team actively track and forecast potential interest rate path and yield curve shape Credit and Default Risk • Invested only in securities issued by Government and top rated PSU companies • Credit analyst track the credit profile of the issuer and project likely credit changes even for Public Sector Companies Liquidity Risk • Investment team determine the time taken to liquidate any position based on market trades QDBF : Risk Management Strategies 31
for allocation Government Bond/Bills 25 - 100 Low to High Duration; Liquidity PSU Bonds 0 – 50 Medium to High Duration; Spread; Liquidity Certificate of Deposits/ Commercial Paper/ Short Term Debt Instrument 0 – 75 Low to Medium Liquidity ; Spread ; Duration management TREPs/ Repos 0-100 Low Cash Management QDBF : Asset Allocation of the Scheme
He has been managing this fund since March 01, 2017. Liquid Fund. Invested in government securities treasury bills and AAA/A1 rated PSUs No private corporate credit risks. Entire portfolio is marked-to-market daily to ensure the declared NAV is “real” Disciplined asset liability management. Disciplined proprietary research and investment process. Weekly disclosure of portfolio. Short term investment and liquidity. Fund Manager Category of Scheme Features Useful for Performance of Quantum Liquid Fund
Option Mr. Pankaj Pathak is the Fund Manager effective from March 01, 2017 Past performance may or may not be sustained in the future. Data as of 31st Aug 2021 * Simple Annualized . Pankaj Pathak also manages Quantum Dynamic Bond Fund. Please refer slide no.38 to review performance of Quantum Dynamic Bond Fund. ** Returns for 1 year and above period are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Current Value Rs 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Period Scheme Returns (%) Crisil Liquid Fund Index Returns (%) Crisil 1 year T-bill Index Returns (%) Scheme (Rs.) Crisil Liquid Fund Index (Rs.) Crisil 1 year T-bill Index (Rs.) 7 Days* 3.30% 3.54% 4.51% 10,006 10,007 10,009 15 Days* 3.40% 3.64% 3.27% 10,014 10,015 10,013 1 Month* 3.38% 3.60% 4.24% 10,029 10,031 10,036 1 year** 3.15% 3.64% 3.92% 10,315 10,364 10,392 3 years** 4.72% 5.48% 6.35% 11,485 11,738 12,029 5 years** 5.31% 6.06% 6.21% 12,954 13,425 13,515 7 years** 6.00% 6.68% 6.76% 15,041 15,729 15,808 10 years** 6.88% 7.33% 6.91% 19,466 20,294 19,523 Since Inception (07th April 2006)** 6.95% 7.06% 6.27% 28,160 28,613 25,538
Option Mr. Pankaj Pathak is the Fund Manager effective from March 01, 2017 Past performance may or may not be sustained in the future. Data as of 31st Aug 2021 * Simple Annualized . Pankaj Pathak also manages Quantum Dynamic Bond Fund. Please refer slide no.39 to review performance of Quantum Dynamic Bond Fund. ** Returns for 1 year and above period are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Current Value Rs 10,000 Invested the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Period Scheme Returns (%) Crisil Liquid Fund Index Returns (%) Crisil 1 year T-bill Index Returns (%) Scheme (Rs.) Crisil Liquid Fund Index (Rs.) Crisil 1 year T-bill Index (Rs.) 7 Days* 3.20% 3.54% 4.51% 10,006 10,007 10,009 15 Days* 3.30% 3.64% 3.27% 10,014 10,015 10,013 1 Month* 3.27% 3.60% 4.24% 10,028 10,031 10,036 1 year** 3.05% 3.64% 3.92% 10,305 10,364 10,392 3 years** 4.63% 5.48% 6.35% 11,457 11,738 12,029 Since Inception (1st April 2017)** 5.11% 5.97% 6.13% 12,466 12,921 13,008
years. He has been managing this fund since March 01, 2017. Dynamic Bond Fund. Focuses on the principle of Safety, Liquidity and Returns Ensures to minimize your credit risk (Credit risk is the risk of loss due to default by a borrower) by investing majority of its assets primarily in Government securities or in PSU bonds which are rated as AAA /AA and so forth by a SEBI registered credit rating agency. Controls interest rate risk by active interest rate management. The macro economy research team actively tracks and forecasts interest rate outlook and the portfolio maturity profile is altered at appropriate time based on interest rate views. Short term investment and liquidity. Fund Manager Category of Scheme Features Useful for Performance of Quantum Dynamic Bond Fund
Growth Mr. Pankaj Pathak is the Fund Manager effective from March 01, 2017 Past performance may or may not be sustained in the future. Data as of 31st Aug 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Pankaj Pathak also manages Quantum Liquid Fund. Please refer slide No. 34 for review of performance of Quantum Liquid Fund. Current Value Rs 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Period Scheme Returns (%) CRISIL Composite Bond Fund Index Returns (%) CRISIL 10 Year Gilt Index Returns (%) Scheme (Rs.) CRISIL Composite Bond Fund Index (Rs.) CRISIL 10 Year Gilt Index (Rs.) 1 year 5.26% 5.55% 4.68% 10,526 10,555 10,468 3 years 8.64% 9.85% 9.10% 12,826 13,260 12,987 5 years 7.57% 7.90% 6.42% 14,404 14,626 13,652 Since Inception (19th May 2015) 8.49% 8.52% 7.22% 16,700 16,731 15,504
Growth Mr. Pankaj Pathak is the Fund Manager effective from March 01, 2017 Past performance may or may not be sustained in the future. Data 31st Aug 2021 Returns are net of total expenses and calculated on the basis of Compounded Annualized Growth Rate (CAGR). Pankaj Pathak also manages Quantum Liquid Fund. Please refer slide No. 35 for review of performance of Quantum Liquid Fund. Current Value Rs 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Period Scheme Returns (%) CRISIL Composite Bond Fund Index Returns (%) CRISIL 10 Year Gilt Index Returns (%) Scheme (Rs.) CRISIL Composite Bond Fund Index (Rs.) CRISIL 10 Year Gilt Index (Rs.) 1 year 5.14% 5.55% 4.68% 10,514 10,555 10,468 3 years 8.51% 9.85% 9.10% 12,780 13,260 12,987 Since Inception (1st April 2017) 7.11% 7.85% 5.87% 13,550 13,965 12,869
are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required as per SEBI Mutual Fund Regulations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the data/information/opinions contained in this presentation. The Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required. Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956. 16th September 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.