ESG investing – Quantum India Equity ESG Fund - PowerPoint PPT Presentation

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ESG investing – Quantum India Equity ESG Fund

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Investors are fast evolving to make ESG factors (Environment, Social and Governance) a part of their portfolio. ESG aims to achieve the triple bottom line that is good for the people, planet and profits. It is a framework for analyzing companies and assessing how well they compare to their peers in terms of performance against these metrics. While screening companies, the Quantum India ESG Equity Fund subjectively evaluates more than 200 parameters across the Environment, Social and Governance domains. – PowerPoint PPT presentation

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Title: ESG investing – Quantum India Equity ESG Fund


1
Quantum India ESG Equity Fund December
2020 Private Confidential
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
2
TABLE OF CONTENTS
  • About us
  • About Quantum Mutual Fund
  • What is ESG all about?
  • Whats in it for You?
  • What is our Idea?
  • Performance of the Fund

3
ABOUT US
4
4
Group Update The Past 25 Years
  • 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

5
Our Journey so Far
6
6
About our Sponsor Quantum Advisors Pvt. Ltd.
  • Currently managing an AUM of USD 2.64 Billion
    (INR 19,290 crore) as December 31, 2020
  • 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

7
ABOUT QUANTUM MUTUAL FUND
8
8
About Quantum Mutual Fund
  • 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 Indias 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.1,850 Cr. as on 31st
    December 2020
  • Number of Folios 71,099 as on 31st December 2020

9
9
Company Structure
Quantum Advisors, India (QAS), provides
investment advisory services and manages
portfolios of FIIs and Indian clients. Registered
as Portfolio Manager with SEBI since 1997. It is
led by Mr. I. V. Subramaniam (Subbu), who is the
MD, CEO CIO of the company. Subbu joined
Quantum in 1996 and has over 25 years of
experience in the investment management and
financial services industry. Since June 2000,
Subbu has managed India-dedicated portfolios for
Indian clients and since 2005, he has managed
India-dedicated portfolios for international
clients. Subbu received his Bachelors degree in
commerce from Osmania University in 1983 and his
Law degree from Osmania University in 1986. He is
a CFA Charterholder. Subbu was born in 1962.
100 subsidiary of QAS
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 Accountants degree, Mr. Patel has also
completed his L.L.B. from the University of
Mumbai. Mr. Patel is a Fellow of the Chevening
Standard Chartered Financial Services Leadership
Programme at Kings College, London. He has been a
Director on Association of Mutual Funds In India
(AMFI) Board and also has been a member of
various AMFI and SEBI Committees. Jimmy was born
in 1967.
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
Profile of Management Team - QAMC
Malay Vora Head Legal Compliance (2008)
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 Accountants degree, Mr. Patel has
also completed his L.L.B. from the University of
Mumbai. Mr. Patel is a Fellow of the Chevening
Standard Chartered Financial Services Leadership
Programme at Kings College, London. He has been a
Director on Association of Mutual Funds In India
(AMFI) Board and also has been a member of
various AMFI and SEBI Committees. Jimmy was born
in 1962.
Malay Vora has more than 15 years of experience
in Legal, Compliance and Corporate Secretarial
matters in the financial service industry. He is
a Commerce and Law Graduate and an Associate
Member of Institute of Company Secretaries in
India. Malay is the Head of Legal Compliance
and the Compliance Officer for Quantum AMC. He
has been associated with Quantum since 2008. He
is a SEBI Committee member and has represented
Quantum at an AMFI committee in the past. Malay
was born in 1977.
Sandeep Bhosle AVP Investor Interaction (2011)
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 KPMGs Advisory
Practice in the US and  Head Retail Businesses
at Suminter India Organics, India. She has done
Masters in Management Studies from Jamnalal Bajaj
institute of Management Studies (JBIMS). Rina was
born in 1974.
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, RR Initiatives.
12
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
Portfolio Team Equity
Sorbh Gupta (2011)
Sneha Joshi (2015)
Qualified as a Chartered Accountant, CFA Level
III (Charter Pending), Sorbh Gupta is the Fund
Manager for Quantum Long Term Equity Value Fund
Quantum Tax Saving Fund. With more than 15 years
of experience in equity research as well as
managing funds Sorbh brings with him a wealth of
experience of having tracked varied sectors in
his previous work assignments. Prior to joining
Quantum, Sorbh was associated with Siddhesh
Capital Private Ltd. Sorbh was born in 1980.
With over 7 years of experience in economic,
credit and quantitative research. Sneha holds a
Ph.D. in Economics and has earned an M.A. in
Economics from Gokhale Institute of Politics and
Economics. She joined Quantum AMC in August,
2015. Prior to joining Quantum, she was
associated with Credit Capital Research as a
fixed income research analyst. Sneha was born in
1988.
Nilesh Shetty (2009)
Hitendra Parekh (2004)
Nilesh has more than 16 years of experience in
research. He has been a part of Quantum Asset
Management Company since 2009, and at present is
the Fund Manager for Quantum Long Term Equity
Value Fund and Quantum Multi Asset Fund. Nilesh
is a qualified CFA (Chartered Financial Analyst),
ACMA (CIMA, UK) and has completed his Masters in
Management Studies (Finance) from the Mumbai
University. Nilesh was born in 1980.
Has close to 3 decades of experience in financial
services industry. Prior to working with Quantum,
he has been with the Unit Trust of India for 4
years and UTI Securities Ltd for 9 years. He has
completed his B.Com Masters in Financial
Management from Mumbai University. Hitendra was
born in 1968.
14
Portfolio Team Non Equity
Pankaj Pathak (2013) Fixed Income
has over a decade of experience in Fixed income
investments and research. He joined Quantum Asset
Management Company in August, 2013 and at
present, is Fund Manager for Quantum Dynamic Bond
Fund and Quantum Liquid Fund. Prior to joining
Quantum, he was associated with Bank of
Maharashtra. Pankaj holds a Post Graduate Diploma
in Banking Finance from National Institute of
Bank Management, Pune and is qualified CFA
(Chartered Financial Analyst). Pankaj was born in
1986.
Chirag Mehta (2006) Gold/Commodities
has 18 years of experience in the Indian
commodities markets. He also specializes in the
field of alternative investment strategies.
Chirag is a qualified CAIA (Chartered Alternative
Investment Analyst), and has also completed his
Masters in Management Studies in Finance. He
currently manages funds largely in the field of
alternative investments that includes Gold Fund,
a Multi asset fund and an Equity fund of funds
and is also a Fund Manager of Quantum India ESG
Equity Fund. He joined the Quantum after gaining
hands on experience in the physical commodities
market during internship with Kotak Co. Ltd and
working on projects for the Federation of Indian
Commodities Exchanges. Chirag was born in 1981.
Ghazal Jain (2020) Gold/Commodities
has overall 4 years of experience in the field of
finance and alternative investments including of
Gold, Asset Allocation and Personal Finance
investment allocation. She has been with Quantum
Asset Management Company since January, 2019.
Prior to joining Quantum, she was associated with
Fox Education LLP and Bahubali Electronics
Private Limited.
15
Criteria to Select a Good Fund House
16
What is ESG all about?
17
17
ESG Buzz words or Better Investments?
  • Sustainability
  • Responsible Investing
  • Impact Investing
  • Clean Investing
  • Societal Impact
  • Fiduciary Duties

18
What is ESG Investing? Replacing the question
how much return? with how much sustainable
return?
Generic term given to non financial factors that
can have a material impact on firm valuation
19
ESG is the Fastest Growing Investment Approach
Globally?
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-th
e-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.
20
Top Global Risks From Economic to Environmental
  • Climate risk now tops the risks agenda in terms
    of likelihood and impact, while economic risks
    has disappeared from the top five risks

Data Source Global Risk Report 2020 by World
Economic Forum
21
Risks Facing India
Risk 2020 2019 2018 2017 2016
Environmental Highest number of cyclones in a year since 1976 Extended monsoons affected acreage Kerala Floods India scored 5.75 out of 100 in global air quality index Public health emergency declared by doctors in Delhi as air quality in the capital plunged Warmest year since climate data came to be officially compiled southern states faced the worst drought in 40 years
Societal High unemployment, stranded migrants, women unemployment rise Revocation of article 370 Protests against CAA, NRC High unemployment Rising crime rates Income inequality Low participation of women in workforce High levels of urban poverty
Technological Corporate India unprepared for indefinite work from home Internet shutdowns in Assam, Kashmir Mob lynchings encouraged by fake WhatsApp news Facebook data leak of half a million Indian users Ransomware cyber attack Debit card data leak due to malware in ATM security systems 
Economic Negative GDP growth, inflation rising rapidly Slip in GDP growth to multi-year lows Energy price shocks NBFC Crisis Change in Indirect tax structure (GST) Demonetization of Indian currency Large NPAs in the Banking system
Geo-political Border issues with China Trade disputes with USA Tensions, terror strikes with Pakistan Military stand-off between India and China at Doklam Surgical strikes
22
22
E for Environment
Data Source 1) https//www.businesstoday.in/curre
nt/economy-politics/india-has-highest-number-of-pe
ople-living-below-poverty-line-world-bank/story/23
8085.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-e
mitters-and-how-theyve-changed 6)
https//www.vox.com/2018/5/8/17316978/india-pollut
ion-levels-air-delhi-health 5) Niti Aayog Report
23
23
S for Social
Data Source 1) https//www.businesstoday.in/curre
nt/economy-politics/india-has-highest-number-of-pe
ople-living-below-poverty-line-world-bank/story/23
8085.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-e
mitters-and-how-theyve-changed 6)
https//www.vox.com/2018/5/8/17316978/india-pollut
ion-levels-air-delhi-health 7)https//www.mapsofi
ndia.com/my-india/india/major-issues-in-india
24
24
G for Governance
as per filings in the MCA 21 registry
25
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.
26
26
A Positive Correlation Between Sustainability and
Economic Profitability
Percentage of studies showing Data Source
Oxford report From stockholder to stakeholder
based on more than 200 academic studies (March
2015)
27
What is in it for You?
28
Responsibility and Returns Pro?tability are Not
Incompatible, but are Generally Complementary
As on November 30, 2020. 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.
29
29
Sustainability Initiatives
  • 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 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.
30
30
Sustainability Initiatives
  • 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 ES
    aspects

Shree Cement
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.
31
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. Past Performance may or may
not be sustained in future.
32
32
ESG Indices Versus Equity Indices
MSCI India ESG Leaders Index NIFTY 100 ESG Index NIFTY Index BSE 200 Index MSCI India Index
Returns Since 2011 36.2 30.5 25.2 24.7 22.9
Annualized SD 27.2 26.5 28.0 26.5 27.5
VAR -45.0 -43.7 -46.2 -43.7 -45.3
Sharpe Ratio 1.1126 0.9281 0.6913 0.7095 0.6195
Drawdown -35.0 -36.9 -37.9 -37.8 -38.3
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.
  • Less volatile
  • Sustainable Profitability
  • Higher returns over long duration
  • Lower downside risk

33
33
ESG Indices Versus Equity Indices
As on December 31, 2020. Data Source Bloomberg,
LLP
34
What is Our Idea? Delivering Long term value from
ESG
35
35
Quantums ESG Approach
  • 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

36
36
Approach to ESG Evaluation
Scoring system
Data Sources
Proprietary research (Blended Approach)
  • 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.
  • 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)
  • 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)

37
37
ESG What Will You Own?
  • 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

38
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.
39
Portfolio Construction, using our Proprietary ESG
Scores
YES
No
For Research
YES
Not included in the Portfolio
Investment Criteria / Sector guardrails
Note Please refer Scheme Information Document of
the Scheme for complete Investment Strategy
40
Investing with Values
  • 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!!!
41
41
Diversified Portfolio !
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 )
Infosys Ltd 5.19
HDFC Ltd 4.72
TCS Ltd 4.47
Wipro Ltd 4.13
HDFC Bank Ltd 3.80
Kotak Mahindra Bank Ltd 3.33
Tata Consumer Products Ltd 3.28
Marico Ltd 3.11
Tata Motors Ltd 2.86
Tata Communications Ltd 2.86
Total Weight of Top 10 Allocation 37.75
Sector Weight Nifty 100 ESG Index Weight
Information Technology 18.72 19.42
Materials 15.15 7.50
Consumer Discretionary 16.39 13.33
Financials 17.17 30.98
Consumer Staples 14.01 4.79
Communication Services 3.45 2.66
Energy 3.58 9.62
Industrials 3.79 4.37
Health Care 2.78 5.97
Utilities 1.25 1.36
Source Quantum Asset Management Company Pvt
Ltd As of December 31, 2020
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.
42
The Portfolio Relative To The SP BSE-30 Index
  QESG As Of SP BSE-30
  QESG SP BSE-30 Index Index
Number of equity stocks 45   30
Median market capitalization (USD mn) 7,849 27 28,809
Weighted dividend yield 1.20 105 1.10
Weighted PER March 2021E 20.83x 117 17.8x
Weighted EPS Growth March 2021E 29.10 103 28.10
PEG Ratio (excludes cash) 0.72x 113 0.63x
       
T12M PE 39.5x   32.1x
Wt of stocks with PER gt 20 T12M PE 83   88
Wt of stocks with PER lt 20 T12M PE 17   12
Wt of stocks with PER gt 30 T12M PE 49   52
Source Quantum Asset Management Company Pvt Ltd
As of December 31, 2020. cash weight excluded
SP BSE-30 Index weight is based on
free-float. SP BSE 30 Index column depicts the
Fund fundamentals as a percentage of SP 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 SP BSE 30 as of the reporting
date i.e. December 31, 2020.
43
Performance of the Fund
Mr. Chirag Mehta Work experience 18 years. Ms.
Sneha Joshi Work experience 7 years. Both have
been managing the fund since July 12, 2019.
Fund Manager
Category of Scheme
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.
Features
Useful for
Long term capital appreciation.
44
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 25.72 22.89 17.11 12,580 12,296 11,716
Since Inception (12th July 2019) 21.36 19.82 16.55 13,310 13,061 12,537
Past performance may or may not be sustained in
the future. Data as of 31st December 2020 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 46 47.
Mr. Chirag Mehta manages 5 schemes of Quantum
Mutual Fund.
45
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 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 24.95 22.89 17.11 12,502 12,296 11,716
Since Inception (12th July 2019) 20.62 19.82 16.55 13,190 13,061 12,537
Past performance may or may not be sustained in
the future. Data as of 31st December 2020 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 46 47. Mr.
Chirag Mehta manages 5 schemes of Quantum Mutual
Fund.
46
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) 13.86 17.87 5.28 9.45 19.94 13.27
Quantum Equity Fund of Funds Regular Plan (Gr) 13.58 17.87 5.09 9.45 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
December,2020. 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. Regular Plan Launched on April 01,
2017 and has not completed 5 years since
inception. 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) 13.42 18.81 8.59 13.75 9.61 12.91
Quantum Multi Asset Fund of Funds Regular Plan (Gr) 13.10 18.81 8.37 13.75 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
December 2020. Indicates CRISIL Composite Bond
Fund Index (40) SP BSE SENSEX Total Return
Index (40) Domestic price of Gold (20). 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.
Regular Plan Launched on April 01, 2017 and has
not completed 5 years since inception. .
47
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) 26.15 27.39 18.28 19.46 13.45 14.62
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
31st December, 2020 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) 26.37 27.39 18.25 19.46 13.43 14.62
Quantum Gold Savings Fund Regular Plan (Gr) 26.27 27.39 18.13 19.46 NA NA
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
31st December , 2020 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. . Regular Plan Launched on
April 01, 2017 and has not completed 5 years
since inception
48
Product Label
49
Product Label
50
Product Label
51
For additional information, please contact
Sandeep Bhosle AVP- Customer Interaction Email
SandeepB_at_QuantumAMC.com Mobile 91-
98209-43101 Office 91-22-6144-7804 Fax 91-22-2
285-4318 Website www.QuantumAMC.com
Quantum Asset Management Company Private
Limited Hoechst House, 7th Floor, Nariman
Point Mumbai-400021, India
52
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. 6th January 2021 Mutual
fund investments are subject to market risks,
read all scheme related documents carefully.
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