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ESG investing – Quantum India Equity ESG Fund

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.

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ESG investing – Quantum India Equity ESG Fund

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  1. Panel Discussion on Asset Classes of Equity, Debt & Gold Quantum India ESG Equity Fund Speakers: December 2020 Private & Confidential Sorbh Gupta – Fund Manager, Equity Chirag Mehta – Sr. Fund Manager, Alternative Investments December 17, 2020 1

  2. TABLE OF CONTENTS • About us • About Quantum Mutual Fund • What is ESG all about? • What’s 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 • Quantum Gold Savings Fund • India’s 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 • Quantum Liquid Fund • Quantum Equity Fund of Funds • “Path to Profit” Launched • Quantum Multi Asset Fund of Funds • Quantum Long Term Equity Fund completes 10-year track record • Quantum India ESG Equity Fund

  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 India’s 1st Fund house that started with a focus on a Low Cost Approach for investors Simple range of funds: No confusion for investors Disciplined Research and Investment Process: Team-driven, no “star” fund managers Staying the course, no short cuts: Asset Managers, not Asset Gatherers Quantum MF AUM = Rs.1,850 Cr. as on 31stDecember 2020  Number of Folios: 71,099 as on 31stDecember 2020 

  9. 9 Company Structure Quantum Advisors, India 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. (QAS), provides investment advisory services and manages Subbu joined Quantum in 1996 and has over 25 years of experience in the investment management and financial services industry. Since June 2000, Subbu has managed India-dedicated portfolios for Indian clients and since 2005, he has managed India-dedicated portfolios for international clients. Subbu received his Bachelor’s degree in commerce from Osmania University in 1983 and his Law degree from Osmania University in 1986. He is a CFA 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 Accountant’s degree, Mr. Patel has also completed his L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy was born in 1967.

  10. 10 Always Putting Investors First, Even Above our Growth in AUM SEBI Imposes Rule on MF Industry Quantum Mutual Fund 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) 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. Jimmy Patel MD & CEO (2010) Jimmy Patel has over 3 decades of experience in the financial services sector, and has held various key management roles. Along with holding a Chartered Accountant’s degree, Mr. Patel has also completed his L.L.B. from the University of Mumbai. Mr. Patel is a Fellow of the Chevening Standard Chartered Financial Services Leadership Programme at Kings College, London. He has been a Director on Association of Mutual Funds In India (AMFI) Board and also has been a member of various AMFI and SEBI Committees. Jimmy was born in 1962. Rina Nathani Chief Business Officer (2020) 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, R&R Initiatives. Rina has over 20 years of experience in building businesses, advising companies and leading teams to successful outcomes. Prior to joining Quantum AMC, Rina was a Director in KPMG’s Advisory Practice in the US and Head – Retail Businesses at Suminter India Organics, India. She has done Masters in Management Studies from Jamnalal Bajaj institute of Management Studies (JBIMS). Rina was born in 1974.

  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 Sneha Joshi (2015) 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 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. in his previous work 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 (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. in Management Studies

  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 • 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

  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-the-pri 2) Global Sustainable Investment Review 2016. Please note that the above information is for explanation purposes only. The information provided here is not meant to be considered as investment advice/ recommendation to invest. Please seek independent professional advice and arrive at an informed investment decision before making any investments.

  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 Warmest year since climate data came to be officially compiled; southern states faced the worst drought in 40 years 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 Highest number of cyclones in a year since 1976 Extended monsoons affected acreage Environme ntal High unemployment, stranded migrants, women unemployment rise Revocation of article 370; Protests against CAA, NRC Income inequality; Low participation of women in workforce High unemployment; Rising crime rates High levels of urban poverty Societal Mob lynchings encouraged by fake WhatsApp news; Facebook data leak of half a million Indian users Corporate India unprepared for indefinite work from home Debit card data leak due to malware in ATM security systems Internet shutdowns in Assam, Kashmir Technologi cal Ransomware cyber attack Negative GDP growth, inflation rising rapidly Demonetization of Indian currency; Large NPAs in the Banking system Slip in GDP growth to multi-year lows Energy price shocks; NBFC Crisis Change in Indirect tax structure (GST) Economic Border issues with China Tensions, terror strikes with Pakistan Military stand-off between India and China at Doklam Geo- political Trade disputes with USA Surgical strikes

  22. 22 E for Environment Water Stress 54% of India facing high stress Clean, affordable energy Fossil fuels constitute 92.5% of commercial energy consumption and 75% of total energy consumption Climate change # 3 globally in carbon emissions but low on per capita basis Pollution 11 of top 12 polluted cities in India 21 Indian cities will run out of groundwater by 2020 Data Source: 1) https://www.businesstoday.in/current/economy-politics/india-has-highest-number-of-people-living-below-poverty-line-world-bank/story/238085.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-emitters-and-how-theyve-changed 6) https://www.vox.com/2018/5/8/17316978/india-pollution-levels-air-delhi-health 5) Niti Aayog Report

  23. 23 S for Social 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 world’s land; 17% of world’s 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/current/economy-politics/india-has-highest-number-of-people-living-below-poverty-line-world-bank/story/238085.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-emitters-and-how-theyve-changed 6) https://www.vox.com/2018/5/8/17316978/india-pollution-levels-air-delhi-health 7)https://www.mapsofindia.com/my-india/india/major-issues-in-india

  24. 24 G for Governance 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 IL&FS, Zee Group or DHFL *as per filings in the MCA 21 registry

  25. Evidence of Stock Price Reaction to Negative News Share price drop on NSE Stock News Issue Date 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 bank’s corporate social responsibility (CSR) initiative J&K Bank Governance June -19 ~20% in 1 day 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 Dec-18 Sun Pharma Governance ~26% in 2 months Manpasand Beverages Deloitte resigned as statutory auditor before Q4 results saying in a letter to the board that the company didn’t provide “significant information.” Governance May -18 ~40% in 2 days Company came under the SEBI scanner for alleged price and volume manipulation of its own scrip on the BSE Vakrangee Governance Feb-18 ~48% in 5 days Social & Environment Vedanta Jan-14 ~66% in 2 years Government rejected Vedanta’s bauxite mining plans in Niyamgiri 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 India’s corporate governance standards as well as the credibility of auditors. Satyam Computer Services 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) Strong ESG profile More competitive Higher Profitability Higher dividends Lower risk of severe incidents Strong ESG profile Better risk management Lower tail risk Strong ESG profile Low systematic risk Low cost of capital High valuation

  27. What is in it for You?

  28. Responsibility and Returns Profitability 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 professional promoter holding of ~60% managed CEO by despite  5 of 9 Board members are independent  37% of the material from renewable sources  93% of packaging material is recyclable  Implemented sourcing guidelines in 2017 responsible 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 Shree Cement  All plants comply with zero liquid discharge norms  Use of air cooled condensers to conserve water  Contracts include aspects with suppliers on clauses E&S 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 increase in monthly income from INR 4-5K to 14-18 K for homes -  Business professional promoter holding of ~75% managed CEO by despite  Environmentally products friendly 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 MSCI India Index NIFTY Index BSE 200 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  Higher returns over long duration  Sustainable Profitability  Lower downside risk

  33. 33 ESG Indices Versus Equity Indices 140 NIFTY100 ESG Index MSCI India ESG Leaders Index BSE200 Index NIFTY Index SENSEX Index MSCI India Index 130 120 110 100 90 80 70 60 Jul 20 Jun 20 Apr 20 Jul 19 May 20 Oct 19 Jan 20 Feb 20 Oct 20 Sep 19 Sep 20 Mar 20 Dec 19 Dec 20 Nov 19 Nov 20 Aug 19 Aug 20 As on December 31, 2020. Data Source: Bloomberg, LLP

  34. What is Our Idea? Delivering Long term value from ESG

  35. 35 Quantum’s 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 Proprietary research (Blended Approach) Scoring system Data Sources •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 E&S 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 > 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 > 125 stocks Based on Quantum’s 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 > $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 Stock with Volume > US$ 1 mn per day? YES No Stock under active coverage? For Research YES ESG Score < internal threshold > Internal threshold for 0.5% weight Not included in the Portfolio Included in the Portfolio: ESG score of stock / ESG score of all stocks > 0 Investment Criteria / Sector guardrails Wt of a stock in the portfolio depend on ESG score Min 1%, Max 5% @ cost Maximum Weight for a stock 10% at market value 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 Top 10 Holding (Weight %) 5.19% Weight % Nifty 100 ESG Index Weight % Sector Company Infosys Ltd 18.72% 19.42% Information Technology HDFC Ltd 4.72% 15.15% 7.50% Materials TCS Ltd 4.47% 16.39% 13.33% Consumer Discretionary Wipro Ltd 4.13% 17.17% 30.98% Financials HDFC Bank Ltd 3.80% 14.01% 4.79% Consumer Staples Kotak Mahindra Bank Ltd 3.33% 3.45% 2.66% Communication Services Tata Consumer Products Ltd 3.28% 3.58% 9.62% Energy Marico Ltd 3.11% 3.79% 4.37% Industrials Tata Motors Ltd 2.86% 2.78% 5.97% Health Care Tata Communications Ltd 2.86% 1.25% 1.36% Utilities Total Weight of Top 10 Allocation 37.75% 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 S&P BSE-30 Index As % Of S&P BSE-30 Index** QESG S&P BSE-30 Index Number of equity stocks 45 30 7,849 27% 28,809 Median market capitalization (USD mn) 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% 0.72x 113% 0.63x PEG Ratio (excludes cash) T12M PE 39.5x 32.1x %Wt of stocks with PER > 20 T12M PE 83% 88% %Wt of stocks with PER < 20 T12M PE 17% 12% %Wt of stocks with PER > 30 T12M PE 49% 52% Source: Quantum Asset Management Company Pvt Ltd; As of December 31, 2020.| cash weight excluded | ** S&P BSE-30 Index weight is based on free- float. % S&P BSE 30 Index column depicts the Fund fundamentals as a percentage of S&P BSE 30 Index fundamentals. The figures mentioned in WTD PER, WTD EPS and PEG ratio are calculated on the basis of Bloomberg consensus estimates for companies owned by the Fund as well as the companies in the S&P BSE 30 as of the reporting date i.e. December 31, 2020.

  43. Performance of the Fund Mr. Chirag Mehta Work experience: 18 years. Fund Manager Ms. Sneha Joshi Work experience: 7 years. Both have been managing the fund since July 12, 2019. Category of Scheme Thematic Scheme. Quantum India ESG Equity Fund 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 Current Value of 10,000 Invested at the beginning of a given period Additional Benchmark Additional Benchmark Benchmark Benchmark Period NIFTY 100 ESG TRI (Rs) NIFTY 100 ESG TRI (%) S&P BSE Sensex TRI (%) S&P BSE Sensex TRI (Rs) Scheme Returns (%) Scheme (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 31stDecember 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 Current Value of 10,000 Invested at the beginning of a given period Additional Benchmark Additional Benchmark Benchmark Benchmark Period NIFTY 100 ESG TRI (Rs) NIFTY 100 ESG TRI (%) S&P BSE Sensex TRI (%) S&P BSE Sensex TRI (Rs) Scheme Returns (%) Scheme (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 31stDecember 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 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Equity Fund of Funds – Direct Plan (Gr) Quantum Equity Fund of Funds – Regular Plan (Gr) Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 31stDecember,2020. # S&P 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. 13.86% 17.87% 5.28% 9.45% 19.94% 13.27% 13.58% 17.87% 5.09% 9.45% NA NA 1 year 3 years 5 years Period 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 31stDecember 2020. # Indicates CRISIL Composite Bond Fund Index (40%) + S&P 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 3 years 5 years Benchmark Returns (%) # Scheme 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 31stDecember, 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 3 years 5 years Benchmark Returns (%) # Scheme Returns (%) Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Savings Fund– Direct Plan (Gr) Quantum Gold Savings Fund– Regular Plan (Gr) 26.37% 27.39% 18.25% 19.46% 13.43% 14.62% 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 31stDecember , 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

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