Quantum India ESG Equity Fund

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Quantum India ESG Equity Fund
April 2021 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 Fung
• 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

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About our Sponsor Quantum Advisors Pvt. Ltd.
6

• Currently managing an AUM of USD 2.70 Billion
  (INR 19,998 crore) as April 30, 2021
• 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

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ABOUT QUANTUM MUTUAL FUND
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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.1,914.71 Cr. as on 30th April
  2021
• Number of Folios 71,906 as on 30th April 2021

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 Charter holder. 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.

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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. Jimmy was born in
1962. 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. 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 is a SEBI Committee member and
has represented Quantum at an AMFI committee in
the past. Malay was born in 1977.
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Sandeep Bhosle AVP 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. Raje
ndra 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 Equity
Nilesh Shetty (2009) 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.
Sorbh Gupta (2011) 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.
Sneha Joshi (2015) 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.
Hitendra Parekh (2004) 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.
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Portfolio Team Non Equity
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.
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.
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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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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 31 March 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 2020 2019 2018 2017 2016
Environme ntal 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
Technologi cal 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
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E for Environment
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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
700 million people who have no access to
toilets at home
50 of all villagers have no access to
healthcare providers
Every five persons among ten in India are
illiterate
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.mapsofin
dia.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?
Governance issues are more common in promoter
led companies
CRAs have repeatedly failed to alert investors
about impending defaults be it the case of
ILFS, Zee Group or DHFL
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.
27
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 April 30, 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.
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Sustainability Initiatives
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 Data as on 30th April
2021, 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.
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Sustainability Initiatives
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• 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 30th April
2021, 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

• 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 30th April
2021, 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
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 12.7 12.2 10.5 11.2 8.1
Annualized SD 15.9 18.0 17.7 17.9 17.0
VAR -26.3 -29.6 -29.2 -29.6 -28.0
Sharpe Ratio 0.419 0.343 0.254 0.286 0.122
Drawdown -22.7 -27.1 -29.1 -28.6 -28.0
As April 30, 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

34
ESG Indices Versus Equity Indices
34
400
MSCI India ESG Leaders Index
350
NIFTY 100 ESG Index
300
NIFTY Index
250
BSE 200 Index
200
MSCI India Index
150 100 50 -
Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul
2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct
2013 Jan 2014 Apr 2014 Jul 2014 Oct 2014 Jan
2015 Apr 2015 Jul 2015 Oct 2015 Jan 2016 Apr
2016 Jul 2016 Oct 2016 Jan 2017 Apr 2017 Jul
2017 Oct 2017 Jan 2018 Apr 2018 Jul 2018 Oct
2018 Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan
2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021 Apr 2021
Higher returns over long duration, Lower downside
risk, Less volatile, Sustainable Profitability
As on April 30, 2021. Data Source Bloomberg, LLP
35
What is Our Idea?
Delivering Long term value from ESG
36
Quantums ESG Approach
36

• 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

37
Approach to ESG Evaluation
37
Proprietary research
Scoring system
Data Sources
(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)

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ESG What Will You Own?
38

• 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

39
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.
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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
Note Please refer Scheme Information Document of
the Scheme for complete Investment Strategy
41
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!!!

42
Diversified Portfolio !
42
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 4.37
Infosys Ltd 4.15
Housing Development Finance Corporation Ltd 4.04
Tata Communications Ltd 3.44
Wipro Ltd 3.39
Tata Motors Ltd 3.36
Tata Chemicals Ltd 3.32
Tata Consumer Products Ltd 3.28
Havells India Ltd 3.12
HDFC Bank Ltd 3.05
Total Weight of Top 10 Allocation 35.52
Sector Weight Nifty 100 ESG Index Weight
Consumer Discretionary 23.34 12.35
Information Technology 17.48 22.07
Financials 15.14 28.61
Materials 13.66 7.63
Consumer Staples 12.40 12.62
Utilities 4.58 2.69
Communication Services 3.44 2.96
Health Care 2.74 4.96
Industrials 1.25 1.84
Energy 0.77 4.27
Cash Source Quant 5.20 um Asset Manag ement Company Pvt Ltd
100.00 As of 31st January , 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.
43
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 48 30
Median market capitalization (USD mn) 8,349 30.00 27,949
Weighted dividend yield 1.10 96.00 1.10
Weighted PER March 2021E 20.92x 116.00 18.00x
Weighted EPS Growth March 2021E 28.22 121.00 23.40
PEG Ratio (excludes cash) 0.74x 96.00 0.77x

T12M PE 41.40x 34.40x
Wt of stocks with PER gt 20 T12M PE 90.00 91.00
Wt of stocks with PER lt 20 T12M PE 10.00 9.00
Wt of stocks with PER gt 30 T12M PE 68.00 56.00
Source Quantum Asset Management Company Pvt Ltd
As of 30th April , 2021.. 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. 30th April , 2021.
44
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
45
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 61.20 54.08 46.26 16,120 15,408 14,626
Since Inception (12th July 2019) 23.04 19.85 14.81 14,540 13,867 12,832
Past performance may or may not be sustained in
the future. Data as of 30th April , 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 47 48. Mr.
Chirag Mehta manages 5 schemes of Quantum Mutual
Fund.
46
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 60.13 54.08 46.26 16,013 15,408 14,626
Since Inception (12th July 2019) 22.29 19.85 14.81 14,380 13,867 12,832
Past performance may or may not be sustained in
the future. Data as of 30th April 2021 Load is
not taken into consideration in scheme returns
calculation Different Plans shall have different
expense structure. 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 47 48. Mr.
Chirag Mehta manages 5 schemes of Quantum Mutual
Fund.
47
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) 47.42 53.92 8.30 11.46 12.83 15.09
Quantum Equity Fund of Funds Regular Plan (Gr) 47.06 53.92 8.09 11.46 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 30th
April , 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) 16.00 20.01 8.55 11.49 9.21 11.22
Quantum Multi Asset Fund of Funds Regular Plan (Gr) 15.63 20.01 8.30 11.49 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 30th
April , 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.
48
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) -1.17 -0.37 13.37 14.44 7.89 8.94
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
30th April , 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) -3.38 -0.37 13.17 14.44 8.19 8.94
Quantum Gold Savings Fund Regular Plan (Gr) -3.46 -0.37 13.05 14.44 NA NA
Past performance may or may not be sustained in
the future. Domestic Price of Gold. Data as of
30th April , 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.
49
Product Label
50
Product Label
51
Product Label
52
For additional information, please
contact Sandeep Bhosle AVP- Customer
Interaction Email SandeepB_at_QuantumAMC.com
Mobile [phone] Office
91-22-6144-7804 Fax [phone] Website
www.QuantumAMC.com Quantum Asset Management
Company Private Limited Hoechst House, 6th
Floor, Nariman Point Mumbai-400021, India
53
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 May 2021 Mutual fund
investments are subject to market risks, read all
scheme related documents carefully.
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