Find out the investment criteria and process followed for Quantum’s flagship Fund – Quantum Long Term Equity Value Fund. Explore the portfolio construction and how is it tuned to capture the benefits of the long-term India growth story.
www.Quantumamc.com
Panel Discussion Insights on Asset Classes of Equity, Debt & Gold
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 Long Term Equity Value Fund
February 2022
Private & Confidential
2. TABLE OF CONTENTS
About Us
About Quantum Mutual Fund
Our Research and Investment Process
Overview - Indian Economy
QLTEVF Fund Performance
Risk, Summary and Conclusion
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.
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.
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
18. Stock Markets Offer Real Opportunities
➢ Market cap: USD 3,252.16 bn
➢ 4,000+ listed companies
➢ 314 companies market cap > USD 1 bn
➢ 886 companies market cap > USD 100 mn
➢ Daily trading volume USD 21.92 million/day for the period March 2021– Feb 2022
➢ 755 companies with daily avg traded > USD 1 mn
➢ 563 companies with daily avg traded > USD 2 mn
➢ Represents many “real” industries: not only financial services and property stocks
➢ Equity culture – Bombay Stock Exchange over 130 years – oldest in Asia
➢ Newer electronic NSE is the 3rd largest stock exchange in the world by volume
Source: Quantum AMC, Bloomberg, SEBI and Tata Services Ltd As of February 28th , 2022
19. Our Macro Assumptions
The 4 inputs to our bottom-up stock selection process
Source: Quantum Advisors estimates, as of December 2021
*The number is from a changed data series starting Jan 2015. While a “superior” series, there is no comparable number to equate the “New” with the “Old”.
Our estimate Current readings Comments
GDP,
long-term
6.0% to 6.5%
(Old Series*)
9.2%
(Advanced Est. FY -22)
Recovering at steady pace, supported by
gov expenditure and export demand.
GDP growth for FY-23 to be at 8.1%.
Inflation 5.0% to 5.5% 4.91%
CPI inflation is likely to remain close
5.4% in FY22.
10-year bond
Long term:
7.0% to 7.5%
Short term:
6.25%-6.75%
6.55%
Potential liquidity tightening and rate
hike will likely put upward pressure on
bond yields.
FX rates
+/-2%
(INR /USD in
a 73-78 band)
INR/USD ~74.2
Monetary policy tightening in US will put
pressure on INR. However, RBI has
enough FX reserves to buffer any sharp
depreciation.
20. Value Investing– Quantum Mutual Fund
➢ We follow the Value investing strategy that involves buying companies at discounts to their
long-term intrinsic value
➢ We focus on the long term potential of the business
➢ We normalize our assumptions - we do not value the companies on the basis of peak or trough
margins
➢ While valuing the company, we would generally give a 40% discount to its intrinsic value to set
our buy limits
➢ Typical characteristics of the portfolio following Value Investing strategy:
• Low price to earnings ratio
• Low price to book ratio
• Low price to sales multiple
• Low price to cash flow
• High dividend yield
21. 01 Evaluate
• The business of the
company
• The environment in
which it operates
• The management,
and their long-term
goals
• Can the financials
support the long-
term goals?
02 Analyze
• The stock price of
the company based
on fundamentals
relative to its peer
group, its history,
and the market
• PER, PCF, P/BV, Div
Yld, EV/EBITDA
03 Buy
• Current price is
generally 40%+
lower than our
estimate of long-
term value (in case
of first time buy)
04 Sell
• Current price is > our
estimate of long-
term value
• Better Investment
Alternatives
• Changed view of
management,
Changed view of
business
Our Investment Criteria - Value
22. 201 stocks
25 to 40 stocks
327 stocks
Quantum’s Bottom-Up Stock Selection Process
Number of stocks mentioned are as per current average trading volume value criteria. The number of Stock in trading volume criteria, and in portfolio will be changed from time to time
based on Investment Strategy of the scheme.
Analysts study stocks in their sector (India) with global comparison, travel worldwide, prepare detailed
projections. Regular research meetings to review ideas and approve stocks for the database. Consensus
required.
All stocks are reviewed time to time generally within 180 days.
We must trust the managements/founders
Number of companies trading over US $1 million/day
Portfolio of stocks with broad exposure to various sectors.
Approved by the portfolio team
Reflects three broad themes: domestic consumption, exports and infrastructure
PORTFOLIO
VALUE AND INTEGRITY SCREENING
ADDRESSABLE UNIVERSE
Clients get best of bottom-up ideas with a risk control measurement for each sector
Generally, < 20% of the stocks we cover meet our “Buy” criteria
23. Portfolio Construction
Portfolio of 25-40 stocks
Part of S&P BSE-30 Index?
Below Buy limit?
What sector?
Stock under active coverage?
Volume INR 6.98 Crs per day
Minimum wt 2% at cost
Maximum wt 6% at cost
Maximum wt 10% at market value
YES
YES
No effect on decision
Indifferent; guided by Research
Investment Rules
To research team
Wait
Weights assigned to a stock
are a function of:
1) Reliability of management
2) Quality of earnings
3) Stability of earnings
4) Upside Potential
5) Alternatives/Cash
Our portfolio turnover is typically 20%, suggesting a 5 year holding period. Please refer Scheme Information Document of the Scheme for complete Investment Strategy
No
No
24. A Tale Of Two Stocks – Since 1991
(1) We buy liquid shares of good
businesses
(2) Illiquid stocks give managers the fees –
investors get nothing
Disclaimer : The stocks discussed herein are for information purpose only. This is not a recommendation to buy or sell any security.
Source: Bloomberg Finance L.P., As of October 29, 2021
A Tale Of Two Stocks – Since 1991
Disclaimer : The stocks discussed herein are for information purpose only. This is not a recommendation to buy or sell any security.
(1) We buy liquid shares of good
businesses
(2) Illiquid stocks give managers the fees –
investors get nothing
Source: Bloomberg Finance L.P., As of February 28, 2022
26. We believe 6.5% Real GDP growth is a realistic long term assumption
Myth #1- “India will grow 8% P.A”
If the world slips sideways, India will grow...as it has over the past 39 year
Source: RBI and www.parliamentofindia.nic.in as of December 2021. Note: The number in red rectangle is from a changed data series starting Jan 2015. While a “superior” series, there is no
comparable number to equate the “New” with the “Old”. Most economists deduct 0% to 1.5% from the “New” to equate to the “Old”; therefore under Modi, the GDP has been at 5.9% at best matching
the 5.6% under the BJP-led coalition government of Vajpayee that resulted in a rout for the BJP at the time of the next election in 2004!* Please note that data used for World GDP for 2017 is a median
Estimate since World Bank data is not yet available and India GDP data is governments second advance estimate released at the end of February 2022.
27. Myth #2 – Make in India will Boost Exports
56
34
18
15
25
30
29
41
53
8
6
18
0%
20%
40%
60%
80%
100%
1951 1991 2015
Sector Contribution To GDP
Services
Industry
Agriculture
Exports
Source: Quantum AMC, Google Images, Bloomberg Finance L.P.
28. Indians Still Consuming: The Hungry Consumers!
*2022 YTD data, Two-wheeler sales data as on January‘ 22, Passenger Vehicle sales Data as on January’ 22, Refrigerator data as on December’ 21, Cement sales data as on January’ 22, Housing loans data as on
January’ 22, Latest cell phone connections data as on January’ 22 Source: 2 wheeler passenger vehicle and Cement – CMIE database; refrigerator production data – CMIE (IIP ) database, home loans outstanding
– RBI Data on Sectoral deployment of bank credit (January 2022). ** Annualized Returns..
Year
(March end)
2-wheelers
(Domestic sales Mn
units)
Passenger Vehicles
(Domestic sales Mn units)
Refrigerators
(Production Mn units)
Cement
(mn tn)
Home loans
outstanding
(Rs. bn)
2008 8,064,903 1.6 6.1 174 2,603
2009 8,439,786 1.6 6.7 187 2,794
2010 10,511,009 2.0 8.0 207 3,009
2011 13,302,335 2.5 8.7 216 3,499
2012 15,384,261 2.6 9.9 230 3,971
2013 15,753,563 2.7 11.1 248 4,567
2014 16,890,778 2.5 10.7 256 5,386
2015 18,433,027 2.6 12.0 270 6,285
2016 18,938,727 2.8 11.9 283 7,468
2017 19,928,958 3.1 13.1 280 8,601
2018 23,007,691 3.3 13.5 298 9,746
2019 24,460,688 3.4 15.6 337 11,601
2020 20,936,201 2.7 15.0 334 13,498
2021 18,397,111 2.5 11.2 294 14,591
2022 YTD * 14,960,116 2.1 7.8 285 15,530
CAGR (since 2008 till 2021)** 6.5% 3.8% 4.8% 4.1% 14.2%
29. India – Linked to Global Capital Flows, Not GDP
As a % of
GDP
Private
Consumption
Exports of
Goods & Services
India 58.8 19.2
China 39.3 19.6
Indonesia 57.7 19.1
Thailand 50.7 68.9
Malaysia 54.9 67.7
Brazil 64.0 12.5
Russia 51.5 25.7
Source: World Bank database
Updated as of March 31, 2021
GDP https://data.worldbank.org/indicator/NY.GDP.MKTP.CD
Pvt consumption https://data.worldbank.org/indicator/NE.CON.PRVT.CD
Exports (Goods & Services) https://data.worldbank.org/indicator/NE.EXP.GNFS.CD
Lower global links
30. Quantum
Long Term
Equity Value
Fund
Mr. Sorbh Gupta
Work experience: 16.5 years. He has been managing this fund Since December1, 2020.
Mr. Nilesh Shetty
Work experience: 18.2 years. He has been managing this fund Since March 28, 2011.
Value Fund
▪ QLTEVF uses bottom-up stock selection process used to minimize risk.
▪ QLTEVF Follows disciplined research and investment process.
▪ QLTEVF has a low portfolio turnover.
▪ QLTEVF holds cash when stock are overvalued - no derivatives and no hedging.
▪ QLTEVF contains a well-balanced portfolio: typically, 25 to 40 stocks, across sector.
Retirement.
Child’s Education.
Child’s Marriage.
Wealth Creation.
Fund
Manager
Category of
Scheme
Features
Useful for
Performance of the Fund
31. Quantum Long Term Equity Value Fund – Must have equity
diversified fund
Value Oriented Equity Diversified Fund since March 2006
Well balanced portfolio: typically 25 to 40 stocks, across sectors
Instrumental for Long Term Financial Goals like Retirement, Child’s Education, Child’s
Marriage & Wealth Creation
A disciplined research and investment process
Low portfolio turnover: Very boring, Buy after Conviction, Hold it for long
Holds shares or cash: No derivatives, No hedging
32. Performance across the market cycles - (Mar 2006 – February 2022)
Data as on 28th February 2022. Past performance may or may not be sustained in future.
This graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 33 Source: Bloomberg
33. Performance of Quantum Long Term Equity Value Fund –
Direct Plan – Growth Option
Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 28th February 2022 Returns are calculated on the basis of Compounded
Annualized Growth Rate (CAGR). *with effect from December 01, 2021 Tier 1 benchmark has been updated as S&P BSE 500 TRI. As TRI data is not available since inception of the scheme, benchmark performance is calculated using
composite CAGR S&P BSE 500 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006.
**with effect from February 01,2020 benchmark has been changed from S&P Sensex TRI to S&P BSE 200 TRI. As TRI data is not available since inception of the scheme, benchmark performance is calculated using
composite CAGR S&P BSE 200 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006
For performance of other Schemes Managed by Mr. Sorbh Gupta please see slide number 43 and for performance of other Schemes Managed by Mr. Nilesh Shetty please see slide 43
The Scheme is co-managed by Mr. Sorbh Gupta and Mr. Nilesh Shetty. Mr. Sorbh Gupta is the Fund Manager effective from December 1, 2020. Mr. Nilesh
Shetty is the Fund Manager effective from March 28, 2011.
Period
Current Value of 10,000 Invested
at the beginning of a given period
Tier 1 -
Benchmark
Tier 2 -
Benchmark
Additional
Benchmark
Tier 1 -
Benchmark
Tier 2 -
Benchmark
Additional
Benchmark
Scheme S&P BSE S&P BSE S&P BSE Scheme S&P BSE S&P BSE S&P BSE
Returns (%) 500 TRI* 200 TRI** Sensex TRI (Rs) 500 TRI* 200 TRI** Sensex TRI
(%) (%) (%) (Rs) (Rs) (Rs)
1 year 12.12% 18.67% 17.92% 15.65% 11,219 11,878 11,802 11,574
3 years 11.50% 18.45% 18.13% 17.49% 13,865 16,626 16,493 16,224
5 years 9.26% 14.72% 14.88% 15.73% 15,572 19,874 20,015 20,766
7 years 9.61% 11.76% 11.70% 11.20% 19,025 21,793 21,714 21,037
10 years 12.53% 14.26% 14.26% 13.76% 32,576 37,962 37,960 36,316
Since
Inception
(13th Mar
2006)
13.32% 12.38% 12.51% 12.39% 73,720 64,595 65,798 64,683
34. SIP Performance - Direct Plan - Growth Option
Data as of 28th February 2022
Past performance may or may not be sustained in the future. Load is not taken into consideration using applicable NAV on the SIP day (5th of every month). Return on SIP and Benchmark are
annualized and compounded investment return for cash flows resulting out of uniform and regular monthly subscriptions as on 5th day of every month (in case 5th is a non-Business Day, then the
next Business Day) and have been worked out using the Excel spreadsheet function known as XIRR. XIRR calculates the internal rate of return for series of cash flow. Assuming Rs 10,000
invested every month on 5th day of every month (in case 5th is a non-Business Day, then the next Business Day), the 1 year, 3 years, 5 years, 7 years, 10 years and since inception returns from SIP
are annualized and compounded investment return computed on the assumption that SIP installments were received across the time periods from the start date of SIP from the end of the
relevant period viz. 1 year, 3 years, 5 years, 7 years, 10 years and since Inception. *XIRR - XIRR calculates the internal rate of return to measure and compare the profitability of series of
investments. #Benchmark Returns. @Additional Benchmark Returns.
SIP Investments
Since Inception
SIP
10 year SIP 7 year SIP 5 year SIP 3 year SIP 1 year SIP
Total Amount Invested (`‘000) 1910 1200 840 600 360 120
Mkt Value as on February 28,
22 (`‘000)
5878 2237 1246 806.1 465.3 119.7
S&P BSE 500 TRI (`‘000) 6003 2619 1446 906.8 500.2 123.6
S&P BSE 200 TRI (`‘000) 6021 2611 1446 905.4 495.2 123.7
S&P BSE Sensex TRI (`‘000) 5780 2543 1444 902.6 481.1 123.8
Returns (XIRR*) (%) 12.9% 12.0% 11.1% 11.8% 17.6% -0.5%
S&P BSE 500 TRI (XIRR*) (%) 13.2% 15.0% 15.3% 16.6% 22.8% 5.7%
S&P BSE 200 TRI (XIRR*) (%) 13.2% 14.9% 15.3% 16.6% 22.1% 6.0%
S&P BSE Sensex TRI (XIRR*)
(%)
12.8% 14.4% 15.3% 16.4% 20.0% 6.0%
35. Performance of Quantum Long Term Equity Value Fund –
Regular Plan – Growth Option
The Scheme is co-managed by Mr. Sorbh Gupta and Mr. Nilesh Shetty. Mr. Sorbh Gupta is the Fund Manager effective from December 1, 2020. Mr. Nilesh
Shetty is the Fund Manager effective from March 28, 2011.
Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data as of 28th February 2022 Returns are calculated on the
basis of Compounded Annualized Growth Rate (CAGR). *#with effect from December 01, 2021 Tier 1 benchmark has been updated as S&P BSE 500 TRI. As TRI data is not available since inception of the
scheme, benchmark performance is calculated using composite CAGR S&P BSE 500 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006.
**with effect from February 01,2020 benchmark has been changed from S&P Sensex TRI to S&P BSE 200 TRI. As TRI data is not available since inception of the scheme, benchmark performance
is calculated using composite CAGR S&P BSE 200 index PRI Value from March 13, 2006 to July 31, 2006 and TRI Value since August 1, 2006.
For performance of other Schemes Managed by Mr. Sorbh Gupta please see slide number 43 and for performance of other Schemes Managed by Mr. Nilesh Shetty please see slide 43
.
Period
Current Value of 10,000 Invested
at the beginning of a given period
Tier 1 –
Benchmark
Tier 2 -
Benchmark
Additional
Benchmark
Tier 1 -
Benchmark
Tier 2 -
Benchmark
Additional
Benchmark
Scheme S&P BSE S&P BSE S&P BSE Scheme S&P BSE S&P BSE S&P BSE
Returns (%) 500 TRI* 200 TRI** Sensex TRI (Rs) 500 TRI* 200 TRI** Sensex TRI
(%) (%)
(%) (Rs) (Rs) (Rs)
1 year 11.56% 18.67% 17.92% 15.65% 11,163 11,878 11,802 11,574
3 years 10.94% 18.45% 18.13% 17.49% 13,658 16,626 16,493 16,224
Since Inception
(01st Apr 2017)
8.50% 14.10% 14.32% 15.28% 14,935 19,129 19,316 20,123
36. QLTEVF Monthly Cash Weight - Move To Cash When There Is
No Value And Wait Patiently
Source: Quantum AMC. As of 28th February 2022
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00% Mar-06
Jul-06
Nov-06
Mar-07
Jul-07
Nov-07
Mar-08
Jul-08
Nov-08
Mar-09
Jul-09
Nov-09
Mar-10
Jul-10
Nov-10
Mar-11
Jul-11
Nov-11
Mar-12
Jul-12
Nov-12
Mar-13
Jul-13
Nov-13
Mar-14
Jul-14
Nov-14
Mar-15
Jul-15
Nov-15
Mar-16
Jul-16
Nov-16
Mar-17
Jul-17
Nov-17
Mar-18
Jul-18
Nov-18
Mar-19
Jul-19
Nov-19
Mar-20
Jul-20
Nov-20
Mar-21
Jul-21
Nov-21
Month end Cash Weight (Other than Equity & Including CBLO and TREP)
37. While Avoiding The “Illiquidity Trap” Is Critical To Our Investment
Process, We Are Not Shy Of Owning Small Caps
Data as of 28th February 2022 Source : Bloomberg. The number of stocks in portfolio will be changed from time to time based on Investment Strategy of the Scheme.
Market Cap
Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Jan 2022
Number of
Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Number
of Stocks
Weight
Number
of Stocks
Weight
> INR 35,000 Crs 19 75% 17 75% 19 75% 17 69% 21 75% 21 77%
> INR 5,000 Crs,< INR 35,000
Crs
4 11% 3 9% 5 15% 8 18% 7 17% 8 15%
>INR 3,000 Crs,< INR 5,000
Crs
0 0% 1 3% 0 0% 0 0% 0 0% 0 0%
< INR 3000 Crs 1 2% 0 0% 1 2% 1 1% 1 1% 0 0%
Total Stocks in portfolio 24 88% 21 87% 25 92% 26 88% 29 93% 29 92%
38. Divergent Portfolio - Not the Index for Sure!
Even though we focus on buying liquid stocks, we do not necessarily buy Index stocks
Source: Quantum Asset Management Company Pvt Ltd and Asia Index Pvt Ltd As of 28th February 2022
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.
S&P BSE-200 Index
(Weight)
Do we own it in the
QLTEVF?
Change for the month
ended
January 31, 2022
Reliance Industries Ltd
8.33% #N/A -1.14%
HDFC Bank Ltd
6.43% 8.08% -1.12%
Infosys Ltd
6.39% 6.13% -3.96%
ICICI Bank Ltd
5.28% 5.53% -5.93%
Housing Development Finance Corp Ltd
4.38% 7.76% -6.19%
Total
30.81% 27.50% -18.34%
39. Portfolio Top 5 Holdings – Different Weights
Source: Quantum Asset Management Company Pvt Ltd and Asia Index Pvt Ltd. As of 28th February 2022
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
QLTEVF
(Weight)
S&P BSE-200 TRI
(weight)
Housing Development Finance Corporation Ltd 8.08% 6.43%
Infosys Ltd 7.76% 4.38%
HDFC Bank Ltd 6.13% 6.39%
ICICI Bank Ltd 5.53% 5.28%
State Bank of India 4.13% 1.90%
Total 31.63% 24.38%
40. Sector Exposure of Our Bottom-Up Stock Picking Process
Note: Past Performance may or may not be sustained in future. Source: MSCI, Quantum AMC | As of 28th February 2022
Sectors 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
sectors. The above information should not be constructed as research Report or recommendation to buy or sell of any sectors / stocks.
Sector
MSCI
AC World
November
2019
S&P BSE-30
Index
November
2019
QLTEVF
December
2016
QLTEVF
December
2017
QLTEVF
December
2018
QLTEVF
December
2019
QLTEVF
December
2020
QLTEVF
January
2022
Communication
Services
9% 2% 2% 2% 2% 0% 0% 0%
Consumer Disc. 11% 6% 23% 24% 19% 19% 17% 17%
Consumer Staples 8% 8% 0% 0% 0% 0% 0% 0%
Energy 5% 13% 9% 3% 3% 2% 2% 2%
Financials 17% 47% 16% 14% 25% 30% 29% 30%
Healthcare 12% 1% 3% 6% 6% 5% 6% 5%
Industrials 10% 4% 3% 1% 2% 0% 2% 2%
Materials 5% 3% 5% 4% 7% 8% 10% 10%
Real Estate 3% 0% 0% 0% 0% 0% 0% 0 %
Technology 17% 14% 14% 15% 17% 17% 17% 16%
Utilities 3% 2% 13% 14% 12% 11% 10% 10%
Cash Equiv. 0% 0 12% 19% 8% 8% 7% 8%
Total 100% 100% 100% 100% 100% 100% 100% 100%
No. of Securities 3,060 31 24 21 25 26 29 29
41. Portfolio Top 10 Holdings
Source: Quantum Asset Management Company Pvt Ltd. As of 28th February 2022
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.
Stocks Weights
Housing Development Finance Corporation Ltd 8.08%
Infosys Ltd 7.76%
HDFC Bank Ltd 6.13%
ICICI Bank Ltd 5.53%
State Bank of India 4.13%
Mahindra & Mahindra Ltd 4.12%
ACC Ltd 3.71%
Tata Steel Ltd 3.59%
Wipro Ltd 3.42%
Hero MotoCorp Ltd 3.35%
Total 49.82%
42. Stocks we Own are Liquid
Source: Bloomberg. Data as on 28th February 2022 . Based on average daily volume of portfolio stocks for the last one year and Quantum’s trading share of 33%.
The number of stocks in portfolio will be changed from time to time based on Investment Strategy of the Scheme.
.
No of trading
days to sell
positions
Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Jan 2022
Number
of stocks
Weight
Number
of stocks
Weight
Number
of stocks
Weight
Number
of stocks
Weight
Number of
stocks
Weight
Number
of stocks
Weight
Less than 1 day 20 77% 17 71% 21 78% 21 76% 26 87% 27 90%
1 day to 5 days 4 11% 2 3% 2 8% 4 14% 3 6% 2 2%
5 days to 22
days
0 0 2 6% 2 7% 1 2% 0 0% 0 0%
> 22 trading
days
0 0% 0 0% 0 0% 0 0% 0 0% 0 0%
Total Stocks in
portfolio
24 88% 21 81% 25 93% 26 92% 29 93% 29 92%
43. Other Schemes managed by Sorbh Gupta and Nilesh Shetty
Quantum Tax Saving Fund
Mr. Sorbh Gupta is the Fund Manager effective from October 1, 2016.
Past performance may or may not be sustained in the future. Data as of 28th February 2022
#S&P BSE 500 TRI ##S&P BSE 200 TRI. With effect from February 01,2020 benchmark has been changed from S&P Sensex TRI to S&P BSE 200 TRI. Returns are net of total expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR). Mr. Sorbh Gupta co-manages 2 scheme of the Quantum Mutual Fund.
Quantum Multi Asset Fund of Funds
Mr. Chirag Mehta and Mr. Nilesh Shetty are Fund Managers effective from July 11, 2012.
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 5 schemes of the Quantum Mutual Fund. Mr. Nilesh Shetty manages 2 schemes of the Quantum Mutual Fund.
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
Tier 1
Benchmark (%) #
Tier 2
Benchmark (%) #
Scheme
Tier 1
Benchmark (%) #
Tier 2
Benchmark (%) #
Scheme
Tier 1
Benchmark (%) #
Tier 2
Benchmark (%) #
Returns (%) Returns (%) # Returns (%) ## Returns (%) Returns (%) # Returns (%) ##
Returns
(%)
Returns (%) # Returns (%) ##
Quantum Tax Saving Fund-
Direct Plan (Gr)
12.28% 18.67% 17.92% 11.64% 18.45% 18.13% 9.35% 14.72% 14.88%
Quantum Tax Saving Fund-
Regular Plan (Gr)
11.75% 18.67% 17.92% 11.10% 18.45% 18.13%
N.A. N.A. N.A.
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
45. 45
Impact/Risk Analysis on The Portfolio –
A Top-down View for Presentation Purposes
Source: Quantum AMC. Data as on February 28, 2022
Note:
Companies where bulk of the sales come from India are classified under Local Opportunity
Companies where 25% or more, sales come from outside India are classified under Global Opportunity
Companies which have their pricing determined by government policies are classified under Regulatory/Tariff
The number of stocks in portfolio will be changed from time to time based on Investment Strategy of the Scheme.
Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Jan 2022
Number
of Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Local Opportunity 6 25% 5 24% 10 39% 11 41% 11 42% 12 40%
Global
opportunity
11 41% 11 40% 10 39% 9 37% 12 40% 12 40%
Regulatory/Tariff 7 22% 5 17% 5 15% 6 14% 6 11% 5 12%
Total Stocks in
Portfolio
24 88% 21 81% 25 93% 26 92% 29 93% 29 92%
46. Indian Private /MNC/ Government
Source: Quantum AMC. Data as on February 28, 2022. The number of stocks in portfolio will be changed from time to time based on Investment Strategy of the Scheme.
Events
Dec 2016 Dec 2017 Dec 2018 Dec 2019 Dec 2020 Jan 2022
Number
of Stocks
Weight
Number
of Stocks
Weight
Number
of Stocks
Weight
Number
of Stocks
Weight
Number of
Stocks
Weight
Number of
Stocks
Weight
Government 8 26% 6 21% 7 19% 7 19% 7 14% 6 16%
Indian Private 10 41% 8 35% 12 47% 12 45% 12 44% 13 42%
MNC 6 21% 7 25% 7 27% 7 28% 10 35% 10 34%
Total Stocks in
Portfolio
24 88% 21 81% 26 93% 26 92% 29 93% 29 92%
47. The Portfolio Relative To The S&P BSE-30 Index
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. February 28, 2022.
QLTEVF
As % Of S&P BSE-30
S&P BSE-30 Index Index**
Number of equity stocks 29 97.00% 30
Median market
capitalization (USD mn)
9,905 29.00% 34,582
Weighted dividend yield 1.94% 162.00% 1.20%
Weighted PER: March
2023E
13.4x 65.00% 20.50x
Weighted EPS Growth:
March 2023E
25.5% 105.00% 24.30%
PEG Ratio (excludes cash)
2023E
0.50x 62.00% 0.8x
T12M PE 19.00x 67.00% 28.50x
Weightage of stocks with
PER > 20
63.00% 71.00% 89.00%
Weightage of stocks with
PER > 30
20.00% 35.26% 56.00%
48. Summary: A significant allocation to public equities using a
disciplined, long-term, bottom-up, value-driven research and
investment process for investing in the evolving Indian stock
markets
48
➢ Overall, economic policy is geared towards growth
➢ India is a party to global trade and tariff agreements
➢ Political “risk” exists – but effect is more on specific sector reforms, rather than overall direction
➢ Indian companies and entrepreneurs have oriented themselves to live – and thrive – in free markets: world
class management
➢ While the macro-economy looks good, fiscal deficits could rekindle inflationary pressures, a hardening
interest rate environment will put growth on a +6% trajectory
➢ Infrastructure: Lot of talk, little action – inflection point?
➢ Yes, shake hands – but count how many fingers you get back!
49. Our Tried and Tested
Research and Investment Process
to give Clients with a Long-term investment philosophy
a Channel
that aims to outperform on the Upside
and
limits the Downside
India – A Wonderful Long-term Theme,
But On A Bumpy Road Requires
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.
21st March 2022
Mutual fund investments are subject to market risks, read all scheme related documents carefully.