The panel discussion featured speakers from equity, debt, and gold asset classes:
- Sorbh Gupta from equity funds
- Chirag Mehta from alternative investments including gold
- They discussed the performance and outlook for various asset classes.
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
February 2022
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
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 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
6. 6
➢ Currently managing an AUM of USD 2.61 Billion (~INR 19,671 crore) as February 28,
2022.
➢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.
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.1,947.73 Cr. as on February 28, 2022.
➢ Number of Folios: 75,634 as on February 28, 2022.
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 & 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.
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.
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.
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
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.
Profile of Management Team - QAMC
12. Sandeep Bhosle
VP - 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) -Equity
Sorbh has more than 16 years of
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.
Nilesh Shetty
(2009) -Equity
Nilesh has more than 18
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
Sneha Joshi (2015) -
Alternative Investment
Sneha has over 9 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
Hitendra Parekh
(2004) – Equity
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.
Portfolio Team
14. Portfolio Team
Pankaj Pathak (2013) –
Fixed Income
Pankaj has over 12 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
(Chartered Financial Analyst).
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.
Ghazal Jain (2020) –
Gold/Commodities
Ghazal has over 5 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. Diversify your investments with our easy 12-20-80* Asset
Allocation Strategy
Please note the above is a suggested fund allocation and not to be considered as an investment advice or recommendation
19. 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?”
20. 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 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?
21. ➢ 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
22. Top Global Risks: From Economic to Environmental
Data Source: Global Risk
Report 2021 by World
Economic Forum
23. Risk 2021 2020 2019 2018 2017 2016
Environmental
Yet another year of
extreme weather events
from cyclones to floods
to wild fires across
India
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
Farmers protest to
revoke the three farm
laws
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
Technological
Issues related to
business continuity and
disaster recovery,
additional cyber security
threats continued
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
Low private
consumption, high
urban unemployment
and rising inflation
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
China’s aggression on
northern border and
Russia-Ukraine conflict
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
24. 24
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 Environmental
25. 25
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
26. 26
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
27. 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
28. 28
*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
30. As on 28th February 2022. 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.
31. 31
➢ 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 28th February 2022, 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
32. 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.
➢ 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 28th February 2022, Past Performance may or may not be sustained in future.
33. 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 28th February 2022, Past Performance may or may not be sustained in future.
34. 34
As on 28th February 2022. 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
MSCI India ESG
Leaders Index
NIFTY 100
ESG Index
NIFTY
Index
BSE 200
Index
MSCI India
Index
Sensex Index
Returns Since
2011^
13.8% 13.7% 11.8% 12.4% 10.3% 12.0%
Annualized SD 16.0% 17.9% 17.7% 17.9% 17.1% 17.4%
VAR -26.4% -29.6% -29.2% -29.5% -28.2% -28.7%
Sharpe Ratio 0.476 0.416 0.315 0.346 0.240 0.334
Drawdown -22.7% -27.1% -29.1% -28.6% -28.0% -28.3%
35. 35
As on 28th February 2022. Past Performance may or may not be sustained in future
Data Source: Bloomberg, LLP
ESG Indices Versus Equity Indices
Higher returns over long duration, Lower downside risk, Less volatile,
Sustainable Profitability
36. What is Our Idea?
Delivering Long term value from ESG
37. 37
▪ 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
38. 38
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
39. 39
➢ 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?
40. > 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. Please refer Scheme Information Document of the Scheme for complete Investment Strategy
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 > $1 mn
PORTFOLIO
ESG COMPLIANCE CHECK
INITIAL SCREEN
450+ stocks
Investors get exposure to broad basket of ESG compliant companies which in the long
run is expected to outperform conventional market indices
Companies > ESG score of 0 qualify for inclusion in the portfolio. Allocation is based
on the ESG score of the company, with guardrails around Index sector ranges
Stock Selection Process Driven by our Proprietary ESG Scores
41. Stock with Volume > US$ 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
42. ➢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
43. 43
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 28th February 2022
Diversified Portfolio!
Company
Top 10 Holding
(Weight %)
Tata Consultancy Services Ltd 4.87%
Infosys Ltd 4.84%
Housing Development Finance
Corporation Ltd
3.89%
Wipro Ltd 3.61%
Tata Chemicals Ltd 3.25%
Tata Communications Ltd 3.19%
Tata Consumer Products Ltd 3.05%
Marico Ltd 2.98%
HDFC Bank Ltd 2.70%
Voltas Ltd 2.53%
Total Weight of Top 10 Allocation 34.91%
Sector Weight %
Nifty 100 ESG
Index Weight %
Information Technology 21.61% 21.48%
Consumer Discretionary 20.94% 12.08%
Materials 15.30% 6.42%
Financials 14.10% 29.53%
Consumer Staples 11.74% 12.58%
Cash 4.90%
Utilities 3.43% 3.82%
Health Care 3.31% 5.12%
Communication Services 3.19% 2.85%
Industrials 1.48% 2.48%
Total 100.00%
44. Source: Quantum Asset Management Company Pvt Ltd; As of 31st January 2022..| 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. 28th February 2022.
The Portfolio Relative To The S&P BSE-30 Index
QESG
As % Of S&P BSE-30
S&P BSE-30 Index Index**
Number of equity stocks 45 150.00% 30
Median market capitalization (USD mn) 8,784 25.00% 34,582
Weighted dividend yield 1.27% 106.00% 1.20%
Weighted PER: March 2023E 24.6x 120.00% 20.50x
Weighted EPS Growth: March 2023E 25.4% 104.00% 24.30%
PEG Ratio (excludes cash) 2023E 1.00x 115.00% 0.8x
T12M PE 37.30x 130.74% 28.50x
%Wt of stocks with PER > 20 T12M PE 86.00% 96.39% 89.00%
%Wt of stocks with PER < 20 T12M PE 14.00% 130.40% 11.00%
%Wt of stocks with PER > 30 T12M PE 60.00% 106.90% 56.00%
45. 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
46. Past performance may or may not be sustained in the future. Data as of 28th February 2022
Load is not taken into consideration in scheme returns calculation. 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 48 & 49. Mr. Chirag Mehta manages 5 schemes of Quantum Mutual Fund.
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
Period
Current Value of 10,000 Invested
at the beginning of a given period
Tier 1
Benchmark
Additional
Benchmark
Tier 1
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 13.97% 19.84% 15.65% 11,405 11,996 11,574
Since Inception (12th July 2019) 20.15% 20.42% 16.44% 16,230 16,325 14,942
47. Past performance may or may not be sustained in the future. Data as of 28th February 2022
Load is not taken into consideration in scheme returns calculation. 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 48 & 49. Mr. Chirag Mehta manages 5 schemes of Quantum Mutual Fund.
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
Period
Current Value of 10,000 Invested
at the beginning of a given period
Tier 1
Benchmark
Additional
Benchmark
Tier 1
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 13.12% 19.84% 15.65% 11,320 11,996 11,574
Since Inception (12th July 2019) 19.36% 20.42% 16.44% 15,950 16,325 14,942
48. Quantum Equity Fund of Funds
Mr. Chirag Mehta is the Fund Manager effective from November 01, 2013.
Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 28th February 2022 # S&P BSE 200 TRI Returns are
net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 4 schemes of the Quantum Mutual Fund
Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 28th February 2022 . # 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). Mr. Chirag Mehta manages 4 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
Period Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2017 to Feb 28, 2022 (5 years)
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Quantum Equity Fund of Funds – Direct
Plan (Gr)
16.24% 17.92% 15.91% 18.13% 12.15% 14.88%
Quantum Equity Fund of Funds –
Regular Plan (Gr)
15.97% 17.92% 15.63% 18.13% NA NA
Period Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2017 to Feb 28, 2022 (5 years)
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Quantum Multi Asset Fund of Funds* –
Direct Plan (Gr)
6.95% 10.31% 9.25% 12.93% 8.19% 11.42%
Quantum Multi Asset Fund of Funds* –
Regular Plan (Gr)
6.56% 10.31% 8.92% 12.93% NA NA
49. Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data as of 28th February 2022
Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR).
Mr. Chirag Mehta manages 4 Schemes.
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
Period Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2017 to Feb 28, 2022 (5 years)
Scheme
Returns (%)
Tier 1
Benchmark
Returns (%) #
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Scheme
Returns (%)
Tier 1 Benchmark
Returns (%) #
Quantum Gold Savings Fund–
Direct Plan (Gr)
7.96% 11.05% 13.64% 15.10% 9.73% 11.15%
Quantum Gold Savings Fund–
Regular Plan (Gr)
7.80% 11.05% 13.50% 15.10% NA NA
56. For additional information, please contact:
Quantum Asset Management Company Private Limited
Hoechst House, 6th Floor,
Nariman Point
Mumbai-400021, India
Sandeep Bhosle
VP- Customer Interaction
Email: SandeepB@QuantumAMC.com
Mobile: +91- 98-209-43101
Office :+91-22-6144-7804
Fax :+91-22-2285-4318
Website: www.QuantumAMC.com
57. 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.
17th March 2022
Mutual fund investments are subject to market risks, read all scheme related documents carefully.