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Quantum India ESG Equity Fund

Quantum India ESG Equity Fund

Quantum India ESG Equity Fund is a thematic fund that filters stock based on the ESG parameters that is Environmental, Social and Governance. Understand the evolution of the mutual fund, our ESG screening criteria and portfolio construction process.
Website: https://www.quantumamc.com/mutual-funds/equity-funds/quantum-india-esg-equity-fund/11

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Quantum Mutual Fund

May 31, 2021
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Transcript

  1. Panel Discussion on Asset Classes of Equity, Debt & Gold

    Speakers: Sorbh Gupta – Fund Manager, Equity Chirag Mehta – Sr. Fund Manager, Alternative Investments December 17, 2020 1 Quantum India ESG Equity Fund April 2021 Private & Confidential
  2. TABLE OF CONTENTS About us About Quantum Mutual Fund What

    is ESG all about? What’s in it for You? What is our Idea? Performance of the Fund
  3. ABOUT US

  4. 4  Set the foundation for building an India-focused 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
  5. Our Journey so Far • Quantum Long Term Equity Value

    Fund completes 10-year track record • Quantum Long Term Equity Value Fund • Quantum Liquid Fund • Set up Quantum AMC • Quantum Gold Fung • 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
  6. 6  Currently managing an AUM of USD 2.70 Billion

    (~INR 19,998 crore) as April 30, 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.
  7. ABOUT QUANTUM MUTUAL FUND

  8. 8 Quantum Mutual fund was established in 2006 with the

    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.1,914.71 Cr. as on 30th April 2021  Number of Folios: 71,906 as on 30th April 2021 About Quantum Mutual Fund
  9. Company Structure Quantum Advisors, India (QAS), provides investment advisory services

    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, CEO & CIO 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
  10. 10 Always Putting Investors First, Even Above our Growth in

    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
  11. Jimmy Patel MD & CEO (2010) Jimmy Patel 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 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 is a SEBI Committee member and has represented Quantum at an AMFI committee in the past. Malay was born in 1977. Profile of Management Team - QAMC
  12. Sandeep Bhosle AVP Investor Interaction (2011) Sandeep Bhosle has more

    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.
  13. Sorbh Gupta (2011) Qualified as a Chartered Accountant, CFA Level

    III (Charter Pending), Sorbh Gupta is the Fund Manager for Quantum Long Term Equity Value Fund & Quantum Tax Saving Fund. With more than 15 years of experience in equity research as well as managing funds; Sorbh brings with him a wealth of experience of having tracked varied sectors in his previous work assignments. Prior to joining Quantum, Sorbh was associated with Siddhesh Capital Private Ltd. Sorbh was born in 1980. Nilesh Shetty (2009) Nilesh has more than 16 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. 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) With over 7 years of experience in economic, credit and quantitative research. Sneha 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) 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
  14. Portfolio Team – Non Equity Pankaj Pathak (2013) – Fixed

    Income has over a decade 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 (Chartered Financial Analyst). Pankaj was born in 1986. Chirag Mehta (2006) – Gold/Commodities has 18 years of experience in the Indian commodities markets. He also specializes in the field of alternative investment strategies. Chirag 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 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 has overall 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.
  15. • What is the background? • What is the experience?

    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
  16. What is ESG all about?

  17. 17 ESG – Buzz words or Better Investments?  Sustainability

     Responsible Investing  Impact Investing  Clean Investing  Societal Impact  Fiduciary Duties
  18. Generic term given to non financial factors that can have

    a material impact on firm valuation What is ESG Investing? Replacing the question “how much return?” with “how much sustainable return?”
  19. Top-league funds gradually moving their portfolio to only include ESG-

    compliant businesses: Norges Bank T-Rowe Price Blackrock Investec Natixis The Children's Fund Hermes Investment Management Nordea California Pensions Fund California Teachers' Retirement Fund Swedish Pension Allianz  Since its founding in 2006, the United Nations Principles for Responsible Investing (PRI) has attracted support from more than 3,038 signatories representing over USD $103 trillion in assets under management as of 31 March 2020  $ 23 trillion (some 23% of all funds) institutional investment is now branded ESG Data Source: 1) https://www.unpri.org/pri/about-the-pri 2) Global Sustainable Investment Review 2016. Please note that the above information is for explanation purposes only. The information provided here is not meant to be considered as investment advice/ recommendation to invest. Please seek independent professional advice and arrive at an informed investment decision before making any investments. ESG is the Fastest Growing Investment Approach Globally?
  20.  Climate risk now tops the risks agenda in terms

    of likelihood and impact, while economic risks has disappeared from the top five risks Top Global Risks: From Economic to Environmental Data Source: Global Risk Report 2021 by World Economic Forum
  21. Top Global Risks: From Economic to Environmental Data Source: Global

    Risk Report 2021 by World Economic Forum
  22. Risk 2020 2019 2018 2017 2016 Environme ntal Highest number

    of cyclones in a year since 1976 Extended monsoons affected acreage Kerala Floods; India scored 5.75 out of 100 in global air quality index; Public health emergency declared by doctors in Delhi as air quality in the capital plunged Warmest year since climate data came to be officially compiled; southern states faced the worst drought in 40 years Societal High unemployment, stranded migrants, women unemployment rise Revocation of article 370; Protests against CAA, NRC High unemployment; Rising crime rates Income inequality; Low participation of women in workforce High levels of urban poverty Technologi cal Corporate India unprepared for indefinite work from home Internet shutdowns in Assam, Kashmir Mob lynchings encouraged by fake WhatsApp news; Facebook data leak of half a million Indian users Ransomware cyber attack Debit card data leak due to malware in ATM security systems Economic Negative GDP growth, inflation rising rapidly Slip in GDP growth to multi-year lows Energy price shocks; NBFC Crisis Change in Indirect tax structure (GST) Demonetization of Indian currency; Large NPAs in the Banking system Geo- political Border issues with China Trade disputes with USA Tensions, terror strikes with Pakistan Military stand-off between India and China at Doklam Surgical strikes Risks Facing India
  23. 23 Water Stress 54% of India facing high stress 21

    Indian cities will run out of groundwater by 2020 Clean, affordable energy Fossil fuels constitute 92.5% of commercial energy consumption and 75% of total energy consumption Climate change # 3 globally in carbon emissions but low on per capita basis Pollution 11 of top 12 polluted cities in India Data Source: 1) https://www.businesstoday.in/current/economy-politics/india-has-highest-number-of-people-living-below-poverty-line-world-bank/story/238085.html 2) Census of India 3) World Resources Institute 4) BP & IEA 5) https://www.wri.org/blog/2017/04/interactive-chart-explains-worlds-top-10-emitters-and-how-theyve-changed 6) https://www.vox.com/2018/5/8/17316978/india-pollution-levels-air-delhi-health 5) Niti Aayog Report E for Environment
  24. 24 Poverty 224mn people below poverty line (18% of pop)

    Food Security 2.4% of world’s land; 17% of world’s population Employment lowest participation rates of working age women in the labor force – about 25% Illiteracy Every five persons among ten in India are illiterate Basic hygiene 700 million people who have no access to toilets at home Healthcare system 50% of all villagers have no access to healthcare providers Data Source: 1) https://www.businesstoday.in/current/economy-politics/india-has-highest-number-of-people-living-below-poverty-line-world-bank/story/238085.html 2) Census of India 3) World Resources Institute 4) BP & IEA 5) https://www.wri.org/blog/2017/04/interactive-chart-explains-worlds-top-10-emitters-and-how-theyve-changed 6) https://www.vox.com/2018/5/8/17316978/india-pollution-levels-air-delhi-health 7)https://www.mapsofindia.com/my-india/india/major-issues-in-india S for Social
  25. 25 Credit Rating Agencies (CRAs) behind the curve CRAs have

    repeatedly failed to alert investors about impending defaults be it the case of IL&FS, Zee Group or DHFL “Dependent” independent directors Are independent directors really independent? Or are they friends and family? In India, 15 of the top 20 business groups are family-owned Governance issues are more common in promoter led companies Audit crisis of 2018 Auditors of over 204 listed firms resigned* The comparable figure for 2016-17 was just 18! *as per filings in the MCA 21 registry G for Governance
  26. Stock News Issue Date Share price drop on NSE J&K

    Bank Investigations against the former chairman following allegations that he offered loans worth crores to people recommended by politicians, placed his relatives in plum positions, and for even diverting funds meant for the bank’s corporate social responsibility (CSR) initiative Governance June -19 ~20% in 1 day Sun Pharma A whistleblower email claims Sun Pharma promoter Dilip Shanghvi and his brother-in- law engaged in financial irregularities with stock market scam accused Dharmesh Doshi Governance Dec-18 ~26% in 2 months Manpasand Beverages Deloitte resigned as statutory auditor before Q4 results saying in a letter to the board that the company didn’t provide “significant information.” Governance May -18 ~40% in 2 days Vakrangee Company came under the SEBI scanner for alleged price and volume manipulation of its own scrip on the BSE Governance Feb-18 ~48% in 5 days Vedanta Government rejected Vedanta’s bauxite mining plans in Niyamgiri Social & Environment Jan-14 ~66% in 2 years Satyam Computer Services Chairman confessed to accounting fraud to the tune of ₹7,000 crore and to falsifying revenues, margins and cash balances of the company. One of the largest accounting frauds, which raised serious questions on India’s corporate governance standards as well as the credibility of auditors. Governance Jan-09 ~78% in 1 day Stocks referred above are illustrative and not recommendation of Quantum Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Stocks. The above information of stocks which is already available in publically access media for information and illustrative purpose only and not an endorsement / views / opinion of Quantum Mutual Fund /AMC. The above information should not be constructed as research report or recommendation to buy or sell of any stocks. Evidence of Stock Price Reaction to Negative News
  27. 27 *Percentage of studies showing Data Source: Oxford report ‘From

    stockholder to stakeholder’ based on more than 200 academic studies (March 2015) Strong ESG profile More competitive Higher Profitability Higher dividends Strong ESG profile Better risk management Lower risk of severe incidents Lower tail risk Strong ESG profile Low systematic risk Low cost of capital High valuation A Positive Correlation Between Sustainability and Economic Profitability
  28. What is in it for You?

  29. As on April 30, 2021. Data Source: MSCI Indexes supplied

    by MSCI Inc, and MSCI ESG Indexes supplied by MSCI ESG Research Inc, a subsidiary of MSCI Inc. Past Performance may or may not be sustained in future. Please note that the above information is for explanation purposes only. The information provided here is not meant to be considered as investment advice/ recommendation to invest. Please seek independent professional advice and arrive at an informed investment decision before making any investments. Responsibility and Returns Profitability are Not Incompatible, but are Generally Complementary The ESG index outperformed the traditional Equity index over the period and has also protected downside risk better.
  30. 30  Business managed by professional CEO despite promoter holding

    of ~60%  5 of 9 Board members are independent  37% of the material from renewable sources  93% of packaging material is recyclable  Implemented responsible sourcing guidelines in 2017 Data Source: Bloomberg, LLP Data as on 30th April 2021, Past Performance may or may not be sustained in future. Stocks referred above are illustrative and not recommendation of Quantum Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Stocks. The above information of stocks which is already available in publically access media for information and illustrative purpose only and not an endorsement / views / opinion of Quantum Mutual Fund /AMC. The above information should not be constructed as research report or recommendation to buy or sell of any stocks. Past Performance may or may not be sustained in future. Sustainability Initiatives
  31. 31 Stocks referred above are illustrative and not recommendation of

    Quantum Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Stocks. The above information of stocks which is already available in publically access media for information and illustrative purpose only and not an endorsement / views / opinion of Quantum Mutual Fund /AMC. The above information should not be constructed as research report or recommendation to buy or sell of any stocks. Past Performance may or may not be sustained in future.  39% of energy produced from renewable sources (WHRS + solar)  23.5% use of alternative raw material  All plants comply with zero liquid discharge norms  Use of air cooled condensers to conserve water  Contracts with suppliers include clauses on E&S aspects Shree Cement Sustainability Initiatives Data Source: Bloomberg, LLP Data as on 30th April 2021, Past Performance may or may not be sustained in future.
  32. Stocks referred above are illustrative and not recommendation of Quantum

    Mutual Fund/AMC. The Fund may or may not have any present or future positions in these Stocks. The above information of stocks which is already available in publically access media for information and illustrative purpose only and not an endorsement / views / opinion of Quantum Mutual Fund /AMC. The above information should not be constructed as research report or recommendation to buy or sell of any stocks. Past Performance may or may not be sustained in future.  Provided training to 20,000 unskilled and semi-skilled  Imparted training to women in the field of modern-age paint application for homes - increase in monthly income from INR 4-5K to 14-18 K  Business managed by professional CEO despite promoter holding of ~75%  Environmentally friendly products Sustainability Initiatives Data Source: Bloomberg, LLP Data as on 30th April 2021, Past Performance may or may not be sustained in future.
  33. 33 MSCI India ESG Leaders Index NIFTY 100 ESG Index

    NIFTY Index BSE 200 Index MSCI India Index Returns Since 2011^ 12.7% 12.2% 10.5% 11.2% 8.1% Annualized SD 15.9% 18.0% 17.7% 17.9% 17.0% VAR -26.3% -29.6% -29.2% -29.6% -28.0% Sharpe Ratio 0.419 0.343 0.254 0.286 0.122 Drawdown -22.7% -27.1% -29.1% -28.6% -28.0% As April 30, 2021. Data Source: Bloomberg, LLP ^Data is from 2011 as Base Date for NIFTY100 ESG Index is April 2011 Past Performance may or may not be sustained in future.  Higher returns over long duration  Lower downside risk  Less volatile  Sustainable Profitability ESG Indices Versus Equity Indices
  34. 34 As on April 30, 2021. Data Source: Bloomberg, LLP

    ESG Indices Versus Equity Indices - 50 100 150 200 250 300 350 400 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014 Oct 2014 Jan 2015 Apr 2015 Jul 2015 Oct 2015 Jan 2016 Apr 2016 Jul 2016 Oct 2016 Jan 2017 Apr 2017 Jul 2017 Oct 2017 Jan 2018 Apr 2018 Jul 2018 Oct 2018 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021 MSCI India ESG Leaders Index NIFTY 100 ESG Index NIFTY Index BSE 200 Index MSCI India Index Higher returns over long duration, Lower downside risk, Less volatile, Sustainable Profitability
  35. What is Our Idea? Delivering Long term value from ESG

  36. 36 Our analysis is guided by the materiality of the

    issues Governance sits at the heart of our analysis Typically focus on areas such as capital allocation, board composition, quality of disclosures and treatment of minority shareholders Shortcomings go hand in hand with poor performance on the social and environmental fronts, making it a good proxy for wider problems Identify companies that can act as long term stewards of capital Quantum’s ESG Approach
  37. 37 Data Sources Proprietary research (Blended Approach) Scoring system •Sustainability

    reports (GRI Framework) •Business Responsibility Reports (BRR) and annual reports •Sustainability Accounting Standards Board (SASB) publications •Pollution Control Board Filings •Industry associations (WBCSD, WRI) •News reports •Management interaction Company disclosures (30% weight) Companies are evaluated on their levels of disclosures provided in their sustainability reports / business responsibility reports / annual reports. Companies with higher disclosures get higher scores. Qualitative factors (70% weight) •Evaluate companies on their ESG performance relative to their peers on material ESG aspects. •Check for any past violations / red flags of certain E&S metrics and corporate governance regulations Company disclosures •Binary scoring systems: +1 for disclosure, 0 for non disclosure •Scores standardized from 0 (minimum) to 100 (maximum) Qualitative factors •Negative scoring system: Dependent on relative performance v/s peers or v/s national / global regulations •Penalty for ESG non compliance •Scores standardized from 0 (maximum) to -100 (minimum) Consolidated score •Ranges from +30 (maximum to -70 (minimum) Approach to ESG Evaluation
  38. 38  ESG determined stock selection is Value Agnostic –

    Most stock indexes are Value agnostic as well  ESG weighing provides exposure to Quality and Low volatility factors  ESG generally tends to do well in down markets  ESG focus help avoid tail risks  ESG endeavors to deliver long term risk adjusted performance ESG – What Will You Own?
  39. > 125 stocks 40-60 stocks Number of stocks mentioned are

    as per current average trading volume value criteria and ESG criteria. The number of Stock in trading volume criteria, ESG criteria and in portfolio will be changed from time to time based on Investment Strategy of the scheme. Based on Quantum’s proprietary research methodology, companies within the coverage universe are ranked on their ESG performance. The evaluation process consists of a blend of quantitative and qualitative factors. Assign scores -70 to +30 Addressable universe with avg daily traded value of > $1 mn PORTFOLIO ESG COMPLIANCE CHECK INITIAL SCREEN 450+ stocks Investors get exposure to broad basket of ESG compliant companies which in the long run is expected to outperform conventional market indices Companies > ESG score of 0 qualify for inclusion in the portfolio. Allocation is based on the ESG score of the company, with guardrails around Index sector ranges Stock Selection Process Driven by our Proprietary ESG Scores
  40. Stock with Volume > US$ 1 mn per day? Stock

    under active coverage? ESG Score < internal threshold > Internal threshold for 0.5% weight Included in the Portfolio: ESG score of stock / ESG score of all stocks > 0 Wt of a stock in the portfolio depend on ESG score Min 1%, Max 5% @ cost Maximum Weight for a stock 10% at market value YES Investment Criteria / Sector guardrails For Research Not included in the Portfolio No YES Portfolio Construction, using our Proprietary ESG Scores Note: Please refer Scheme Information Document of the Scheme for complete Investment Strategy
  41. Clean and Environmental friendly businesses Businesses contributing towards the society

    Businesses having a fair and transparent practices Businesses that are responsible Businesses where sustainability drives long term performance Make Quantum India ESG Equity Fund a core part of your portfolio!!! Investing with Values
  42. 42 Company Top 10 Holding (Weight %) Tata Consultancy Services

    Ltd 4.37% Infosys Ltd 4.15% Housing Development Finance Corporation Ltd 4.04% Tata Communications Ltd 3.44% Wipro Ltd 3.39% Tata Motors Ltd 3.36% Tata Chemicals Ltd 3.32% Tata Consumer Products Ltd 3.28% Havells India Ltd 3.12% HDFC Bank Ltd 3.05% Total Weight of Top 10 Allocation 35.52% Quantum India ESG Equity Fund is classified as a thematic fund. However, for all practical purposes, the fund is a well diversified portfolio across market caps and across sectors Stocks referred above are for illustrative purpose only and not recommendation of Quantum Mutual Fund / AMC. The Fund may or may not have any present or future positions in these stocks. The above information should not be constructed as research Report or recommendation to buy or sell of any stocks. Source: Quantum Asset Management Company Pvt Ltd As of 31st January , 2021 Sector Weight % Nifty 100 ESG Index Weight % Consumer Discretionary 23.34% 12.35% Information Technology 17.48% 22.07% Financials 15.14% 28.61% Materials 13.66% 7.63% Consumer Staples 12.40% 12.62% Utilities 4.58% 2.69% Communication Services 3.44% 2.96% Health Care 2.74% 4.96% Industrials 1.25% 1.84% Energy 0.77% 4.27% Cash 5.20% 100.00% Diversified Portfolio !
  43. QESG As % Of S&P BSE-30 S&P BSE-30 Index Index**

    Number of equity stocks 48 30 Median market capitalization (USD mn) 8,349 30.00% 27,949 Weighted dividend yield 1.10% 96.00% 1.10% Weighted PER: March 2021E 20.92x 116.00% 18.00x Weighted EPS Growth: March 2021E 28.22% 121.00% 23.40% PEG Ratio (excludes cash) 0.74x 96.00% 0.77x T12M PE 41.40x 34.40x %Wt of stocks with PER > 20 T12M PE 90.00% 91.00% %Wt of stocks with PER < 20 T12M PE 10.00% 9.00% %Wt of stocks with PER > 30 T12M PE 68.00% 56.00% Source: Quantum Asset Management Company Pvt Ltd; As of 30th April , 2021..| cash weight excluded | ** S&P BSE-30 Index weight is based on free-float. % S&P BSE 30 Index column depicts the Fund fundamentals as a percentage of S&P BSE 30 Index fundamentals. The figures mentioned in WTD PER, WTD EPS and PEG ratio are calculated on the basis of Bloomberg consensus estimates for companies owned by the Fund as well as the companies in the S&P BSE 30 as of the reporting date i.e. 30th April , 2021. The Portfolio Relative To The S&P BSE-30 Index
  44. Quantum India ESG Equity Fund Mr. Chirag Mehta Work experience:

    19 years. Ms. Sneha Joshi Work experience: 8.6 years. Both have been managing the fund since July 12, 2019. Thematic Scheme. Offers an avenue to invest in businesses adhering to sustainable practices that will drive long term performance. Invests based on a comprehensive in-house proprietary research on Environment, Social and Governance aspects. Offers a well-diversified exposure to good quality and sustainable companies with relatively low volatility and downside risk. Long term capital appreciation. Fund Manager Category of Scheme Features Useful for Performance of the Fund
  45. Past performance may or may not be sustained in the

    future. Data as of 30th April , 2021 Load is not taken into consideration in scheme returns calculation Different Plans shall have different expense structure. The Schemes has been in existence for more than 1 year but has not yet completed 3 and 5 years period. Returns are net of total expenses and calculated on the basis of Compounded Annualized Growth Rate(CAGR). For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 47 & 48. Mr. Chirag Mehta manages 5 schemes of Quantum Mutual Fund. Period Current Value of 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Scheme Returns (%) NIFTY 100 ESG TRI (%) S&P BSE Sensex TRI (%) Scheme (Rs) NIFTY 100 ESG TRI (Rs) S&P BSE Sensex TRI (Rs) 1 Year 61.20% 54.08% 46.26% 16,120 15,408 14,626 Since Inception (12th July 2019) 23.04% 19.85% 14.81% 14,540 13,867 12,832 Performance of Quantum India ESG Equity Fund - Direct Plan The Scheme is managed by Mr. Chirag Mehta and Ms. Sneha Joshi. Mr. Chirag Mehta is the Fund Manager effective from July 12, 2019. Ms. Sneha Joshi is the Associate Fund Manager effective from July 12, 2019
  46. Past performance may or may not be sustained in the

    future. Data as of 30th April 2021 Load is not taken into consideration in scheme returns calculation Different Plans shall have different expense structure. Returns are net of total expenses and calculated on the basis of Compounded Annualized Growth Rate(CAGR). For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 47 & 48. Mr. Chirag Mehta manages 5 schemes of Quantum Mutual Fund. Period Current Value of 10,000 Invested at the beginning of a given period Benchmark Additional Benchmark Benchmark Additional Benchmark Scheme Returns (%) NIFTY 100 ESG TRI (%) S&P BSE Sensex TRI (%) Scheme (Rs) NIFTY 100 ESG TRI (Rs) S&P BSE Sensex TRI (Rs) 1 Year 60.13% 54.08% 46.26% 16,013 15,408 14,626 Since Inception (12th July 2019) 22.29% 19.85% 14.81% 14,380 13,867 12,832 Performance of Quantum India ESG Equity Fund - Regular Plan The Scheme is managed by Mr. Chirag Mehta and Ms. Sneha Joshi. Mr. Chirag Mehta is the Fund Manager effective from July 12, 2019. Ms. Sneha Joshi is the Associate Fund Manager effective from July 12, 2019
  47. Quantum Equity Fund of Funds Mr. Chirag Mehta is the

    Fund Manager effective from November 01, 2013. Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Equity Fund of Funds – Direct Plan (Gr) 47.42% 53.92% 8.30% 11.46% 12.83% 15.09% Quantum Equity Fund of Funds – Regular Plan (Gr) 47.06% 53.92% 8.09% 11.46% NA NA Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 30th April , 2021. # S&P BSE 200 TRI Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Different Plans shall have different expense structure. Mr. Chirag Mehta manages 5 schemes of the Quantum Mutual Fund Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Multi Asset Fund of Funds* – Direct Plan (Gr) 16.00% 20.01% 8.55% 11.49% 9.21% 11.22% Quantum Multi Asset Fund of Funds* – Regular Plan (Gr) 15.63% 20.01% 8.30% 11.49% NA NA Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 30th April , 2021. # Benchmark has been changed from Crisil Composite Bond Fund Index (40%) + S&P BSE SENSEX Total Return Index (40%) + Domestic price of gold (20%) to CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index (25%) + Domestic Price of Gold (15%) with effective from April 01, 2021. It is a customized index and it is rebalanced daily. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Different plans shall have different expense structure. Mr. Chirag Mehta manages 5 schemes of the Quantum Mutual Fund. Mr. Nilesh Shetty manages 2 schemes of the Quantum Mutual Fund. *With effect from 1st January 2020, the name of “Quantum Multi Asset Fund” has been changed to “Quantum Multi Asset Fund of Funds”. Quantum Multi Asset Fund of Funds Mr. Chirag Mehta Co-managing along with Mr. Nilesh Shetty effective from July 11, 2012. Other Schemes managed by Mr. Chirag Mehta
  48. Quantum Gold Fund Mr. Chirag Mehta is managing the scheme

    effective from May 1, 2009. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Fund (Gr) -1.17% -0.37% 13.37% 14.44% 7.89% 8.94% Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 30th April , 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Savings Fund– Direct Plan (Gr) -3.38% -0.37% 13.17% 14.44% 8.19% 8.94% Quantum Gold Savings Fund– Regular Plan (Gr) -3.46% -0.37% 13.05% 14.44% NA NA Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 30th April , 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Different Plans shall have different expense structure. Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. Quantum Gold Savings Fund Mr. Chirag Mehta is managing the scheme effective from May 19, 2011. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Other Schemes managed by Mr. Chirag Mehta
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  52. For additional information, please contact: Quantum Asset Management Company Private

    Limited Hoechst House, 6th Floor, Nariman Point Mumbai-400021, India Sandeep Bhosle AVP- Customer Interaction Email: SandeepB@QuantumAMC.com Mobile: +91- 98209-43101 Office :+91-22-6144-7804 Fax :+91-22-2285-4318 Website: www.QuantumAMC.com
  53. Disclaimer – Terms of Use The data in this presentation

    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. 24th May 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.
  54. Thank You 54