Quantum India ESG Equity Fund

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Quantum India ESG Equity Fund
February 2022 Private Confidential
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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
Group Update The Past 25 Years
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

5
Our Journey so Far

• Quantum Gold Savings Fund
• Indias first fully paperless Online Investing
  Platform

• Quantum Dynamic Bond Fund
• Transactions through Email, WhatsApp Fax

• Quantum Gold Fund
• Quantum Nifty ETF
• Quantum Tax Saving
• Fund

• Set up Quantum
• AMC

• Launch of
• Regular Plans

2005
2006
2008
2009
2011
2012
2015
2016
2017
2019

• Quantum Long Term Equity Value Fund completes
  10-year track record

• Quantum Long Term Equity Value Fund
• Quantum Liquid Fund

• Quantum Equity Fund of Funds
• Path to Profit
• Launched

• Quantum Multi Asset Fund of Funds

• Quantum India ESG Equity Fund

6
About our Sponsor Quantum Advisors Pvt. Ltd.
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

7
ABOUT QUANTUM MUTUAL FUND
8
About Quantum Mutual Fund
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 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.1,947.73 Cr. as on February
  28, 2022.
• Number of Folios 75,634 as on February 28, 2022.

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 Bachelors degree in
  commerce from Osmania University in 1983 and his
  Law degree from Osmania University in 1986. He is
  a CFA Charter holder.
• 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.

10
Always Putting Investors First, Even Above our
Growth in AUM
10
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
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Profile of Management Team - QAMC
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. 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 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.
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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, RR Initiatives. Rajendra
Gadiyar Head - Operations (2011) Rajendra brings
with him more than 2 decades of experience in
Operations and Fund Accounting in Mutual Funds
and Insurance. Prior to joining Quantum, he was
associated with various companies across
Insurance, Asset Management and Investment
Management sectors. Rajendra was born in 1968.
Meera Shetty Head - Investor Services
(2006) Meera Shetty has almost two decades of
experience in Investor Servicing. Before joining
Quantum, she was associated with Edelweiss AMC,
Principal AMC and UTI-TSL. She holds a degree in
Commerce and is an MBA with dual specialization
in Finance and Marketing. Meera was born in 1969.
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Portfolio Team
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
Sorbh Gupta (2011) -Equity Sorbh has more than 16
years of experience in equity research as well as
managing funds. At present hes the Fund Manager
for Quantum Long Term Equity Value Fund Quantum
Tax Saving Fund. Hes 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.
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.
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Portfolio Team
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
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.
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Criteria to Select a Good Fund House

• 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
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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
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What is ESG all about?
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ESG Buzz words or Better Investments?
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• Sustainability
• Responsible Investing
• Impact Investing
• Clean Investing
• Societal Impact
• Fiduciary Duties

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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
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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.

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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 2021 by World
Economic Forum
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Top Global Risks From Economic to Environmental
Data Source Global Risk Report 2021 by World
Economic Forum
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Risks Facing India
Risk 2021 2020 2019 2018 2017 2016
Environmental Yet another year of extreme weather events from cyclones to floods to wild fires across India Highest number of cyclones in a year since 1976 Extended monsoons affected acreage Kerala Floods India scored 5.75 out of 100 in global air quality index Public health emergency declared by doctors in Delhi as air quality in the capital plunged Warmest year since climate data came to be officially compiled southern states faced the worst drought in 40 years
Societal Farmers protest to revoke the three farm laws High unemployment, stranded migrants, women unemployment rise Revocation of article 370 Protests against CAA, NRC High unemployment Rising crime rates Income inequality Low participation of women in workforce High levels of urban poverty
Technological Issues related to business continuity and disaster recovery, additional cyber security threats continued Corporate India unprepared for indefinite work from home Internet shutdowns in Assam, Kashmir Mob lynchings encouraged by fake WhatsApp news Facebook data leak of half a million Indian users Ransomware cyber attack Debit card data leak due to malware in ATM security systems
Economic Low private consumption, high urban unemployment and rising inflation Negative GDP growth, inflation rising rapidly Slip in GDP growth to multi-year lows Energy price shocks NBFC Crisis Change in Indirect tax structure (GST) Demonetization of Indian currency Large NPAs in the Banking system
Geo-political Chinas aggression on northern border and Russia-Ukraine conflict Border issues with China Trade disputes with USA Tensions, terror strikes with Pakistan Military stand-off between India and China at Doklam Surgical strikes
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E for Environmental
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Water Stress 54 of India facing high stress
Climate change 3 globally in carbon emissions
but low on per capita basis
Pollution 11 of top 12 polluted cities in India
Clean, affordable energy Fossil fuels constitute
92.5 of commercial energy consumption and 75 of
total energy consumption
21 Indian cities will run out of groundwater by
2020
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-pollution-levels-air-d
elhi-health 5) Niti Aayog Report
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S for Social
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Poverty
Food Security
Employment
lowest participation rates of working age women
in the labor force about 25
224mn people below poverty line (18 of pop)
2.4 of worlds land 17 of worlds population
Illiteracy
Basic hygiene
Healthcare system
50 of all villagers have no access to healthcare
providers
Every five persons among ten in India are
illiterate
700 million people who have no access to toilets
at home
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
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G for Governance
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In India, 15 of the top 20 business groups are
family- owned
Credit Rating Agencies (CRAs) behind the curve
Dependent independent directors
Audit crisis of 2018
Auditors of over 204 listed firms resigned The
comparable figure for 2016-17 was just 18!
Are independent directors really independent? Or
are they friends and family?
CRAs have repeatedly failed to alert investors
about impending defaults be it the case of ILFS,
Zee Group or DHFL
Governance issues are more common in promoter led
companies
as per filings in the MCA 21 registry
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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.
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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)
Strong ESG profile
More competitive
Higher Profitability
Higher dividends
Lower risk of severe incidents Low cost of capital
Strong ESG profile
Better risk management
Lower tail risk
Strong ESG profile
Low systematic risk
High valuation
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What is in it for You?
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Responsibility and Returns Pro?tability are Not
Incompatible,
but are Generally Complementary
As on 28th February 2022. Data Source MSCI
Indexes supplied by MSCI Inc, and MSCI ESG
Indexes supplied by MSCI ESG Research Inc, a
subsidiary of MSCI Inc. Past Performance may or
may not be sustained in future. Please note that
the above information is for explanation purposes
only. The information provided here is not meant
to be considered as investment advice/
recommendation to invest. Please seek independent
professional advice and arrive at an informed
investment decision before making any investments.
The ESG index outperformed the traditional Equity
index over the period and has also protected
downside risk better.
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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 Data as on 28th
February 2022, Past Performance may or may not be
sustained in future. Stocks referred above are
illustrative and not recommendation of Quantum
Mutual Fund/AMC. The Fund may or may not have any
present or future positions in these Stocks. The
above information of stocks which is already
available in publically access media for
information and illustrative purpose only and not
an endorsement / views / opinion of Quantum
Mutual Fund /AMC. The above information should
not be constructed as research report or
recommendation to buy or sell of any stocks. Past
Performance may or may not be sustained in future.
32
Sustainability Initiatives
32

• 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

with suppliers clauses on ES

• Contracts include aspects

Data Source Bloomberg, LLP Data as on 28th
February 2022, Past Performance may or may not be
sustained in future. Stocks referred above are
illustrative and not recommendation of Quantum
Mutual Fund/AMC. The Fund may or may not have any
present or future positions in these Stocks. The
above information of stocks which is already
available in publically access media for
information and illustrative purpose only and not
an endorsement / views / opinion of Quantum
Mutual Fund /AMC. The above information should
not be constructed as research report or
recommendation to buy or sell of any stocks. Past
Performance may or may not be sustained in future.
33
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 Data as on 28th
February 2022, Past Performance may or may not be
sustained in future. Stocks referred above are
illustrative and not recommendation of Quantum
Mutual Fund/AMC. The Fund may or may not have any
present or future positions in these Stocks. The
above information of stocks which is already
available in publically access media for
information and illustrative purpose only and not
an endorsement / views / opinion of Quantum
Mutual Fund /AMC. The above information should
not be constructed as research report or
recommendation to buy or sell of any stocks. Past
Performance may or may not be sustained in future.
34
ESG Indices Versus Equity Indices
MSCI India ESG Leaders Index NIFTY 100 ESG Index NIFTY Index BSE 200 Index MSCI India Index Sensex Index
Returns Since 2011 13.8 13.7 11.8 12.4 10.3 12.0
Annualized SD 16.0 17.9 17.7 17.9 17.1 17.4
VAR -26.4 -29.6 -29.2 -29.5 -28.2 -28.7
Sharpe Ratio 0.476 0.416 0.315 0.346 0.240 0.334
Drawdown -22.7 -27.1 -29.1 -28.6 -28.0 -28.3
As on 28th February 2022. Data Source Bloomberg,
LLP Data is from 2011 as Base Date for NIFTY100
ESG Index is April 2011 Past Performance may or
may not be sustained in future.

• Less volatile

• Higher returns over long duration

• Sustainable Profitability

• Lower downside risk

35
ESG Indices Versus Equity Indices
Higher returns over long duration, Lower downside
risk, Less volatile, As on 28th February 2022.
Past Performance may or may not be sustained in
future
Data Source Bloomberg, LLP
Sustainable Profitability
36
What is Our Idea?
Delivering Long term value from ESG
37
Quantums ESG Approach
37

• Our analysis is guided by the materiality of the
  issues
• Governance sits at the heart of our analysis
• Typically focus on areas such as capital
  allocation, board composition, quality of
  disclosures and treatment of minority
  shareholders
• Shortcomings go hand in hand with poor
  performance on the social and environmental
  fronts, making it a good proxy for wider problems
• Identify companies that can act as long term
  stewards of capital

38
Approach to ESG Evaluation
38
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)

39
ESG What Will You Own?
39

• ESG determined stock selection is Value Agnostic
  Most stock indexes are Value agnostic as well
• ESG weighing provides exposure to Quality and Low
  volatility factors
• ESG generally tends to do well in down markets
• ESG focus help avoid tail risks
• ESG endeavors to deliver long term risk adjusted
  performance

40
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
41
Portfolio Construction, using our Proprietary ESG
Scores
Stock with Volume gt US 1 mn per day? YES
No
For Research
Stock under active coverage?
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 Note Please refer Scheme Information
Document of the Scheme for complete Investment
Strategy
42
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!!!

43
Diversified Portfolio!
43
Quantum India ESG Equity Fund is classified as a
thematic fund. However, for all practical
purposes, the fund is a well diversified
portfolio across market caps and across sectors
Company Top 10 Holding (Weight )
Tata Consultancy Services Ltd 4.87
Infosys Ltd 4.84
Housing Development Finance Corporation Ltd 3.89
Wipro Ltd 3.61
Tata Chemicals Ltd 3.25
Tata Communications Ltd 3.19
Tata Consumer Products Ltd 3.05
Marico Ltd 2.98
HDFC Bank Ltd 2.70
Voltas Ltd 2.53
Total Weight of Top 10 Allocation 34.91
Sector Weight Nifty 100 ESG Index Weight
Information Technology 21.61 21.48
Consumer Discretionary 20.94 12.08
Materials 15.30 6.42
Financials 14.10 29.53
Consumer Staples 11.74 12.58
Cash 4.90
Utilities 3.43 3.82
Health Care 3.31 5.12
Communication Services 3.19 2.85
Industrials 1.48 2.48
Total 100.00
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.
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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 45 150.00 30
Median market capitalization (USD mn) 8,784 25.00 34,582
Weighted dividend yield 1.27 106.00 1.20
Weighted PER March 2023E 24.6x 120.00 20.50x
Weighted EPS Growth March 2023E 25.4 104.00 24.30
PEG Ratio (excludes cash) 2023E 1.00x 115.00 0.8x

T12M PE 37.30x 130.74 28.50x
Wt of stocks with PER gt 20 T12M PE 86.00 96.39 89.00
Wt of stocks with PER lt 20 T12M PE 14.00 130.40 11.00
Wt of stocks with PER gt 30 T12M PE 60.00 106.90 56.00
Source Quantum Asset Management Company Pvt Ltd
As of 31st January 2022.. 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. 28th February 2022.
45
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
46
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 Tier 1 Benchmark Additional Benchmark Tier 1 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 13.97 19.84 15.65 11,405 11,996 11,574
Since Inception (12th July 2019) 20.15 20.42 16.44 16,230 16,325 14,942
Past performance may or may not be sustained in
the future. Data as of 28th February 2022 Load is
not taken into consideration in scheme returns
calculation. Returns are net of total expenses
and calculated on the basis of Compounded
Annualized Growth Rate(CAGR). For performance of
other Schemes Managed by Mr. Chirag Mehta please
see slide number 48 49. Mr. Chirag Mehta
manages 5 schemes of Quantum Mutual Fund.
47
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 Tier 1 Benchmark Additional Benchmark Tier 1 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 13.12 19.84 15.65 11,320 11,996 11,574
Since Inception (12th July 2019) 19.36 20.42 16.44 15,950 16,325 14,942
Past performance may or may not be sustained in
the future. Data as of 28th February 2022 Load is
not taken into consideration in scheme returns
calculation. Returns are net of total expenses
and calculated on the basis of Compounded
Annualized Growth Rate(CAGR). For performance of
other Schemes Managed by Mr. Chirag Mehta please
see slide number 48 49. Mr. Chirag Mehta
manages 5 schemes of Quantum Mutual Fund.
48
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 Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2017 to Feb 28, 2022 (5 years) Feb 28, 2017 to Feb 28, 2022 (5 years)
Scheme Returns () Tier 1 Benchmark Returns () Scheme Returns () Tier 1 Benchmark Returns () Scheme Returns () Tier 1 Benchmark Returns ()
Quantum Equity Fund of Funds Direct Plan (Gr) 16.24 17.92 15.91 18.13 12.15 14.88
Quantum Equity Fund of Funds Regular Plan (Gr) 15.97 17.92 15.63 18.13 NA NA
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 SP BSE 200 TRI Returns are net
of total expenses and are calculated on the basis
of Compounded Annualized Growth Rate (CAGR). Mr.
Chirag Mehta manages 4 schemes of the Quantum
Mutual Fund Quantum Multi Asset Fund of
Funds Mr. Chirag Mehta Co-managing along with Mr.
Nilesh Shetty effective from July 11, 2012.
Period Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2017 to Feb 28, 2022 (5 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
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) 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). Mr. Chirag Mehta manages 4
schemes of the Quantum Mutual Fund. Mr. Nilesh
Shetty manages 2 schemes of the Quantum Mutual
Fund. With effect from 1st January 2020, the
name of Quantum Multi Asset Fund has been
changed to Quantum Multi Asset Fund of Funds.
49
Other Schemes managed by Mr. Chirag Mehta
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 Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 26, 2021 to Feb 28, 2022 (1 year) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2019 to Feb 28, 2022 (3 years) Feb 28, 2017 to Feb 28, 2022 (5 years) Feb 28, 2017 to Feb 28, 2022 (5 years)
Scheme Returns () Tier 1 Benchmark Returns () Scheme Returns () Tier 1 Benchmark Returns () Scheme Returns () Tier 1 Benchmark Returns ()
Quantum Gold Savings Fund Direct Plan (Gr) 7.96 11.05 13.64 15.10 9.73 11.15
Quantum Gold Savings Fund Regular Plan (Gr) 7.80 11.05 13.50 15.10 NA NA
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
28th February 2022 Returns are net of total
expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR). Mr.
Chirag Mehta manages 4 Schemes.
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For additional information, please
contact Sandeep Bhosle VP- Customer
Interaction Email SandeepB_at_QuantumAMC.com Mobile
91- 98-209-43101 Office 91-22-6144-7804 Fax
91-22-2285-4318 Website www.QuantumAMC.com Qua
ntum Asset Management Company Private
Limited Hoechst House, 6th Floor, Nariman
Point Mumbai-400021, India
57
Disclaimer Terms of Use
The data in this presentation are meant for
general reading purpose only and are not meant to
serve as a professional guide/investment advice
for the readers. This presentation has been
prepared on the basis of publicly available
information, internally developed data and other
sources believed to be reliable. Whilst no action
has been suggested or offered based upon the
information provided herein, due care has been
taken to endeavor that the facts are accurate and
reasonable as on date. Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required as per SEBI Mutual Fund Regulations.
Readers are advised to seek independent
professional advice and arrive at an informed
investment decision before making any investment.
None of the Sponsors, the Investment Manager, the
Trustee, their respective Directors, Employees,
Affiliates or Representatives shall be liable for
any direct, indirect, special, incidental,
consequential, punitive or exemplary damages,
including lost profits arising in any way from
the data/information/opinions contained in this
presentation. The Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required. Please visit www.QuantumMF.com to
read scheme specific risk factors. Investors in
the Scheme are not being offered a guaranteed or
assured rate of return and there can be no
assurance that the schemes objective will be
achieved and the NAV of the scheme may go up and
down depending upon the factors and forces
affecting securities market. Investment in mutual
fund units involves investment risk such as
trading volumes, settlement risk, liquidity risk,
default risk including possible loss of capital.
Past performance of the sponsor / AMC / Mutual
Fund does not indicate the future performance of
the Scheme. Statutory Details Quantum Mutual
Fund (the Fund) has been constituted as a Trust
under the Indian Trusts Act, 1882. Sponsor
Quantum Advisors Private Limited. (liability of
Sponsor limited to Rs. 1,00,000/-). Trustee
Quantum Trustee Company Private Limited.
Investment Manager Quantum Asset Management
Company Private Limited. The Sponsor, Trustee and
Investment Manager are incorporated under the
Companies Act, 1956. 17th March 2022 Mutual fund
investments are subject to market risks, read all
scheme related documents carefully.
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