ESG Investing scaling to new highs

1
ESG Investing Scaling to New Highs Here's
Everything You Need to Know
Speakers Mr. Chirag Mehta, Senior Fund Manager
Alternative Investments Ms. Sneha Joshi,
Associate Fund Manager Alternative
Investments June 25th 2021
2
What is ESG Investing?
Replacing the question how much return? with
how much sustainable return?
ENVIRONMENT
SOCIAL
GOVERNANCE

• Climate Change
• GHG Emissions
• Water Stewardship
• Renewable Energy
• Waste Management
• Green Buildings

• Labor Practices
• Corporate Social Responsibility
• Stakeholders opposition
• Product Liability
• Privacy and Data Security

• Minority shareholder treatment
• Board Independence
• Executive Compensation
• Corruption
• Business ethics and frauds

Generic term given to non financial factors that
can have a material impact on firm valuation
3
ESG From a nudge to a push from all sides
4
Examples of irresponsible corporate behavior and
their consequences
ENVIRONMENTAL
Affected element Irresponsible behavior Consequence
Water Inadequate and poor proper waste management system
Litigation and fines

Air Use of traditional technologies to produce high-end products which lead to higher pollution Bad reputation Protests by community members and organizations Negative media attention
Stalled projects
Land Unchecked deforestation and mining can make the ground unsuitable for plant life
SOCIAL
Affected element Irresponsible behavior Consequence
Supplier Low cost suppliers Litigation, bad reputation, product boycotts, Protests by community members and organizations Negative media attention
Employee Unfair wages or poor working conditions Strikes and factory shutdowns liabilities in case of injury or death of employee sexual harassment cases inability to attract and retain good talent
Customer Low quality raw materials Consumer complaints, refunds, fewer repeat purchases, loss of market share, bad reputation, risk of litigation
5
Evidence of Stock Price Reaction to Negative News
Stock News Issue Date Share price drop on NSE
JK 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 banks 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 didnt 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 Vedantas 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 Indias 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.
6
ESG is more about Identifying Opportunities
Governance - Board / Management / Ethics
Environment and Social Externalities'
Financial Strength
Growth Capital Efficiency
Disruptive Change
7
A Positive Correlation Between Sustainability
Economic Profitability
Percentage of studies showing
7
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
Lower risk of severe incidents Low cost of
capital
Strong ESG profile
Lower tail risk
Better risk management
Strong ESG profile
Low systematic risk
High valuation
8
Regulators across the Globe and Investors
pushing up the ESG Agenda
9
The Pandemic as a Sustainability Catalyst
UN PRI signatories have multiplied by 40x and AUM
has increased from 6.5 tr to 80tr from 2006
till date Data Source 1) https//www.unpri.org/pr
i/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.
10
Top-League Funds gradually moving their Portfolio
into the Fastest Growing Investment Opportunity
Institution Total AUM
Investec 53 Bn
Natixis 1.3 Trillion
The Children's Fund 27 Bn
Hermes Investment Management 459 Bn
Nordea 317 Bn
Swedish Pension 459 Bn
Institution Total AUM
Blackrock 8.6 Trillion
California Pensions Fund 401 Bn
California Teachers' Retirement Fund 246 Bn
Allianz 2.8 Trillion
Norges Bank 1.3 Trillion
T-Rowe Price 1.4 Trillion
Data as on 2020. 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. Data
Source 1) https//www.unpri.org/pri/about-the-pri
2) Global Sustainable Investment Review 3) IPE
11
2021 marks the year of mainstreaming ESG globally

• Pandemic brings renewed focus on sustainability
  E S cannot be taken for granted challenging
  the social license to operate
• US President Biden nominates new US SEC chair to
  give a push to tackle climate change
• and social justice.
• EU Taxonomy - an enabler to meet the EUs climate
  and energy targets for 2030 and reach the
  objectives of the European Green Deal
• The United Kingdom announced its strategy to
  become the first country with mandatory
  TCFD-compliant disclosure across the entire
  economy by 2025.

• The Government of New Zealand introduced
  legislation requiring certain financial sector
• participants to have mandatory climate-related
  disclosures.
• 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.

12
ESG Investing Initiation ? Development ?
Mainstream
MCA issued the Corporate Governance
Voluntary Guidelines and Voluntary Guidelines
for Corporate Social Responsibility (CSR)
Task Force on Climate- Related Financial
Disclosures established. Paris Agreement aiming
to limit climate change
MCA formulated the National Guidelines on
Responsible Business Conduct (NGRBC) by
incorporating UNGPs
UN Principles for Responsible Investment (PRI)
launched
SEBI mandates top 100 listed companies to submit
the Business Responsibility Report (BRR)
2006
2007
2009
2011
2012
2014
2015
2018
2019
2020-21
MSCI World ESG Leaders Index launched
India issued National Voluntary Guidelines on
Social, Environmental and Economic
Responsibilities of Business
Business Responsibility and Sustainability
Report (BRSR) mandatory for top 1000 listed
companies
Bombay Stock Exchange (BSE) published Guidance
Document on ESG Disclosures
Indian law mandated companies spend at least 2
of net profits in CSR activities
13
Evidence of ESG doing well
14
Sustainability and Pro?tability are Complementary
and Compatible
As on May 31, 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.
The ESG index outperformed the traditional Equity
index over the period and has also protected
downside risk better.
15
Sustainability and Pro?tability are Complementary
and Compatible
15
Annual Performance () Annual Performance () Annual Performance () Annual Performance ()
Year Nifty 100 ESG Index Nifty 100 Index /-
2020 22.8 16.0 6.9
2019 12.0 11.4 0.6
2018 6.1 3.4 2.7
2017 33.2 32.8 0.4
2016 4.3 4.7 -0.4
2015 -0.8 -1.3 0.5
2014 34.3 34.8 -0.5
2013 10.0 7.0 3.0
2012 34.6 32.3 2.3
370
Nifty 100 ESG TRI
Nifty 100 TRI
320
270 220 170 120 70
Apr 2011 Aug 2011 Dec 2011 Apr 2012 Aug 2012 Dec
2012 Apr 2013 Aug 2013 Dec 2013 Apr 2014 Aug
2014 Dec 2014 Apr 2015 Aug 2015 Dec 2015 Apr
2016 Aug 2016 Dec 2016 Apr 2017 Aug 2017 Dec
2017 Apr 2018 Aug 2018 Dec 2018 Apr 2019 Aug
2019 Dec 2019 Apr 2020 Aug 2020 Dec 2020
As on December 31, 2020. 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. 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.
Nifty 100 ESG Index outperforms Nifty Index and
protects downside risk better
16
Sustainability Initiatives
16
managed
by

• Business 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. 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.

17
Performance of Quantum India ESG Equity Fund
Since
17
Inception (July 2019)
Quantum INDIA ESG Equity Fund Quantum INDIA ESG
Equity Fund NIFTY100 ESG TRI
180
SP BSE Sensex TRI
160 140 120 100 80 60 40
NAV
12-Jul-19
31-May-21
Period 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 35
Since inception, QESG based on absolute return
has outperformed by 1.54 against the
benchmark Nifty 100 ESG Index.
18
Pitfalls of Sustainable Investing
ESG to EHG
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Green Washing

• Greenwashing is top of the worry list for
  investors when it comes to responsible
  investing
• 44 concerned that ESG investments were not what
  they claimed to be
• ESG Investing is looking beyond marketing hype,
  PR spin and disingenuous promise

20
Hogwash and Eyewash

• Devote resources to improving, quantifying and
  leveraging ESG than just making minor tweak.
• Enough with a green-hogwash!
• Complying with the regulations and laws on paper
  is not enough.
• Stop PR-hogwash!
• Overt reliance on self-disclosure and
  self-certification, exaggerated claims without
  verification by companies, asset managers and
  sustainable indices.
• Thats an eye-wash!

21
Rating Conundrum

• How to accurately measure a companys
  environmental and social impact, particularly
  given that ESG remains an evolving concept and
  reporting standards are still in their infancy?
• ESG ratings diverge substantially among rating
  agencies.
• Correlation among ESG ratings by 5 prominent
  rating agencies is on an average 0.61.
• The information the decision-makers receive from
  ESG ratings agencies is relatively noisy,
  resulting
• in confusion.
• MIT Sloan paper Aggregate Confusion The
  Divergence of ESG Ratings explains 50
  difference due to measurement divergence, 13
  due to weight divergence, 36 due to scope
  divergence.
• Establish open and transparent disclosure
  standards and ensure that data is publicly
  accessible is the only way forward.

Source MIT Sloan Research Paper (link)
22
Like Beauty, ESG lies in the eye of the beholder!

• March towards sustainability the promise of ESG
• ESG is highly subjective in many aspects
• ESG is still evolving no perfected science
• Fund house Focus Governance vs Momentum
• ESG Framework evolution
• Quality and Depth of Research no desk research
• Long term approach a market cycle

23
What is our Idea?
Delivering Long term Value from ESG
24
What investors can look for in an ESG fund?
24
ESG is the core of investment decision True to
Label.
In-depth research and due diligence to ensure ESG
research is a priority.
Funds with active engagement with portfolio
companies to get further disclosures and improve
practices.
Diversified portfolio with no lopsided portfolio
in favor of one sector or theme.
Financial sustainability is important
consideration along with materiality.
25
From Integrity Screen in 1996 to E, S, G

• 1996 Introduced the Integrity Screen ? Avoided
  corporates that treated minority investors
• unfairly sin stocks -gt Focus predominantly on
  G and to a certain extent on S factors
• 2015 Formalized a process of rating companies on
  their ESG performance
• Proprietary rating methodology
• Internal research team
• Current database 140 companies rated on their
  ESG performance
• 2019 Launched Quantum India ESG Equity Fund with
  portfolio construction based on
• proprietary ESG rating

26
Quantums ESG Approach
26
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
27
Approach to ESG Evaluation
27
Proprietary research
Scoring system
Data Sources
(Blended Approach)
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.

• Company disclosures
• Binary scoring systems 1 for disclosure, 0 for
  non disclosure
• Scores standardized from 0 (minimum) to 100
  (maximum)

• 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

• 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)

• 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 ES metrics and corporate governance
  regulations

• Consolidated score
• Ranges from 30 (maximum to -70
• (minimum)

28
More Than Desk ESG Research
Primary Research
Secondary Research
Review Updates

• Publicly available data
• Annual Reports, Business Responsibility Reports
  Sustainability Reports
• Attend sustainability seminars,
• conferences

1. G Board Member review, including
   directorship review in other companies
2. KMP check, including controversies. Related
   party analysis

• Review our proprietary ESG
• scores every 6 months
• Active controversy monitoring

1. Meet ESG Head of the Company and/or Key
   Management Personnel
2. Visit Plant, including supply chain. Meet
   dealers, vendors etc.

1. Primary analyst and a Back-up analyst for each
   sector ensures continuity
2. ESG Analyst monitor and update material KPIs

1. E S - Check Pollution Control Board
   filings. Refer NGO reports if available
2. Evaluate v/s global peers

29
Stock Selection Process Driven by our Proprietary
ESG Scores
Investors get exposure to broad basket of ESG
compliant companies which in the long run is
expected to outperform conventional market indices
40-60 stocks
PORTFOLIO
Companies gt 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
ESG COMPLIANCE CHECK
gt 125 stocks
Based on Quantums 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 INITIAL SCREEN
450 stocks
Addressable universe with avg daily traded value
of gt 1 mn
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
30
Portfolio Construction, using our Proprietary ESG
Scores
Stock with Volume gt US 1 mn per day? YES
No
Stock under active coverage?
For Research
YES
ESG Score lt internal threshold gt Internal
threshold for 0.5 weight
Not included in the Portfolio
Included in the Portfolio ESG score of stock /
ESG score of all stocks gt 0 Investment Criteria
/ Sector guardrails Wt of a stock in the
portfolio depend on ESG score Min 1, Max 5 _at_
cost Maximum Weight for a stock 10 at market
value
Please refer Scheme Information Document of the
Scheme for complete Investment Strategy
31
ESG What Will You Own?
31

• 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

32
The Triple Bottom-Line
P l a n e t P e o p l e P r o f i t
33
Performance of the Fund
Fund Manager 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.
Category of Scheme Thematic Scheme.
Features 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.
Useful for Long term capital appreciation.
Quantum India ESG Equity Fund
34
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 Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period Benchmark Additional Benchmark Benchmark Additional Benchmark
Period Scheme Returns () NIFTY 100 ESG TRI () SP BSE Sensex TRI () Scheme (Rs) NIFTY 100 ESG TRI (Rs) SP BSE Sensex TRI (Rs)
1 Year 67.85 68.15 61.66 16,833 16,863 16,209
Since Inception (12th July 2019) 24.79 23.25 18.07 15,200 14,847 13,689
Past performance may or may not be sustained in
the future. Data as of 31st May , 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 41 42. Mr.
Chirag Mehta manages 5 schemes of Quantum Mutual
Fund.
35
Performance of Quantum India ESG Equity Fund
Scheme Name Annualised Standard Deviation VaR Sharpe Ratio Drawdown
Quantum India ESG Equity Fund 20.75 -40.68 0.9065 -33.15
NIFTY100 ESG TRI 24.75 -48.50 0.6978 -36.95
NIFTY TRI 25.78 -50.53 0.4844 -38.27
Bse-30 TRI 26.29 -51.53 0.4593 -37.91
Past performance may or may not be sustained in
the future. Data as of May 31, 2021
36
Diversified Portfolio!
36
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
Company Top 10 Holding (Weight )
Tata Consultancy Services Ltd 4.48
Infosys Ltd 4.19
Housing Development Finance Corporation Ltd 4.13
Wipro Ltd 3.45
Tata Motors Ltd 3.39
Marico Ltd 3.17
Tata Consumer Products Ltd 3.15
Tata Communications Ltd 3.12
HDFC Bank Ltd 3.05
Havells India Ltd 3.02
Total Weight of Top 10 Allocation 35.15
Sector Weight Nifty 100 ESG Index Weight
Consumer Discretionary 29.53 12.48
Information Technology 16.82 21.59
Financials 15.34 28.47
Materials 11.48 7.82
Consumer Staples 7.88 12.63
Energy 4.97 4.36
Communication Services 3.12 2.73
Health Care 2.78 4.83
Industrials 1.31 1.92
Utilities 1.62 3.15
Cash 5.15
100.00
Source Quantum Asset Management Company Pvt Ltd.
As of 31st May, 2021 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.
37
Portfolio Characteristics QESG versus BSE-30 TRI
37
QESG BSE-30 TRI
Weighted dividend yield 1.05 1.07
Weighted EPS Growth March 2023E 27.97 22.66
PEG Ratio (excludes cash) 0.78 0.85
T12M PE 21.95x 19.37x
Weightage of stocks with PER lt 20 92 92
Weightage of stocks with PER gt 20 8 8
Weightage of stocks with PER gt 30 75 65
Past performance may or may not be sustained in
future. Source Quantum Asset Management Company
Pvt Ltd As of May 31, 2021
38
Quantums Equity Allocation Suggestion
For diversification across funds and across
styles, Quantum suggests,
100 Equity 100 Equity 100 Equity
60 20 20
Quantum Equity Fund of Funds Quantum India ESG Equity Fund Quantum Long Term Equity Value Fund
Please note that the above is the suggested fund
allocation only and is not to be considered as an
investment advice/ recommendation, please seek
independent professional advice and arrive at
informed decision before making any investments.
Please seek independent professional advice and
arrive at an informed investment decision before
making any investments.
39
Investing Money Making a Difference
You Shouldn't Have to Pick Between the Two
40
Other Schemes managed by Mr. Chirag Mehta
Quantum Equity Fund of Funds Mr. Chirag Mehta is
the Fund Manager effective from November 01, 2013.
Period 1 year 1 year 3 years 3 years 5 years 5 years
Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Equity Fund of Funds Direct Plan (Gr) 58.83 68.04 11.05 14.48 13.40 15.80
Quantum Equity Fund of Funds Regular Plan (Gr) 58.42 68.04 10.82 14.48 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 31st May
, 2021. SP 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 Quantum Multi Asset Fund
of Funds Mr. Chirag Mehta Co-managing along with
Mr. Nilesh Shetty effective from July 11, 2012.
Period 1 year 1 year 3 years 3 years 5 years 5 years
Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Multi Asset Fund of Funds Direct Plan (Gr) 20.48 25.09 9.59 12.64 9.41 11.70
Quantum Multi Asset Fund of Funds Regular Plan (Gr) 20.08 25.09 9.33 12.64 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 31st May
, 2021. Benchmark has been changed from Crisil
Composite Bond Fund Index (40) SP BSE SENSEX
Total Return Index (40) Domestic price of gold
(20) to CRISIL Composite Bond Fund Index (20)
SP 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.
41
Other Schemes managed by Mr. Chirag Mehta
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 1 year 3 years 3 years 5 years 5 years
Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Gold Fund (Gr) 2.68 3.57 15.20 16.30 9.81 10.89
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
31st May , 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 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
Period 1 year 1 year 3 years 3 years 5 years 5 years
Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Gold Savings Fund Direct Plan (Gr) 3.71 3.57 15.06 16.30 9.76 10.89
Quantum Gold Savings Fund Regular Plan (Gr) 3.62 3.57 14.93 16.30 NA NA
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
31st May, 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.
42

Solutions to meet Sustainable Development Goals
SGD-17
SMILE
WHAT IS SMILE?
THE SMILE STORY
OUTCOME SO FAR
SMILE was born out of our desire to support
credible NGOs and create a steady stream of
money flow for them
Since 2018, Quantum MF investors have supported
7 NGOs from diverse sectors via the SMILE
facility
SMILE enables Quantum MF investors to contribute
10 of their investment in eligible schemes to
charities vetted by HelpYourNGO
43
SMILE Process Flow
INVEST IN SMILE FACILITY Q Long Term Equity Value
Fund Q Equity Fund of Funds Q Dynamic Bond
Fund Q Multi Asset Fund of Funds Q Gold Savings
Fund Q Liquid Fund
DONATE TO NGOS
DONATION RECEIPTS
HelpYourNGO sends donation receipts and
80G Liaises with NGO grantees Monitors reviews
Donated to NGOs selected by investors and
vetted by HelpYourNGO
Q Stands for Quantum for scheme names
Investors receive periodic program reports from
HelpYourNGO on the NGOs supported by them
44
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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 June 2021 Mutual fund
investments are subject to market risks, read all
scheme related documents carefully.
50
50
51
Appendix
52
QESG QLTEVF are Not SAME
52
Quantum India ESG Equity Fund Portfolio

• 34 of the 48 stocks in Quantum India ESG Equity
  Fund are not in the Value Fund.

• There are 14 common stocks in the Value Fund and
  Quantum India ESG Equity Fund.

35
Value Fund Stocks Non-Value Fund Stocks
65

• These 14 stocks account for 35 of

(53 of
Quantum India ESG Equity Fund. the Value Fund)
Source Quantum Asset Management Company Pvt
Ltd As of May 31, 2020
53
Sustainability Initiatives

• 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
• Data Source Bloomberg, LLP 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.

54
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 12.6 12.1 10.5 11.1 8.0 10.6
Annualized SD 16.0 18.0 17.7 18.0 17.0 17.4
VAR -26.3 -29.7 -29.3 -29.6 -28.0 -28.8
Sharpe Ratio 0.412 0.338 0.250 0.281 0.118 0.264
Drawdown -22.7 -27.1 -29.1 -28.6 -28.0 -28.3
As on May 31, 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.

• Less volatile
• Sustainable Profitability

• Higher returns over long duration
• Lower downside risk

55
Issues Opportunities
Environment Environment Social Social Governance Governance
Issues Opportunity Issues Opportunity Issues Opportunity
Climate Change Renewable Energy CSR Community welfare Board Independence Responsible Business Reporting Standards
Green Financing CSR Community welfare Board Independence Responsible Business Reporting Standards
Green Financing CSR Community welfare Board Independence Alignment with Principles/Frameworks like SDGs
Emissions Green Building Employee Welfare, Health Safety Employee Management Engagements Data Protection Privacy Customer Data Safety
Green Logistics Employee Welfare, Health Safety Employee Management Engagements Data Protection Privacy Customer Data Safety
Green Logistics Employee Welfare, Health Safety Employee Management Engagements Data Protection Privacy Impact Assessment
Water stewardship Water Mapping Labor Supply Chain Practises Responsible Supply Chain Management Business Ethnics Biodiversity, Employee Responsible Business Policies
Waste Management Sustainable sourcing Labor Supply Chain Practises Responsible Supply Chain Management Business Ethnics Biodiversity, Employee Responsible Business Policies