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Investment Objective
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To generate long term capital appreciation by investing in a diversified portfolio
of companies demonstrating sustainable practices across Environmental, Social and
Governance (ESG) parameters. However, there can be no assurance that the investment
objective of the Scheme will be achieved.
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Category of Scheme
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Thematic
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Type of Scheme
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An Open ended equity scheme investing in companies demonstrating sustainable practices
across Environment, Social and Governance (ESG) theme.
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Inception Date
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05-Nov-20
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Lock in Period
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Nil
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Minimum Application Amount
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For new investor, INR 5000/- and any amount thereafter
For existing investors, INR 1000/- and any amount thereafter
For Systematic Investment Plan (SIP), the minimum amount is INR 1000/- and in multiples
of INR 1/- thereafter.
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Benchmark Index
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Nifty 100 ESG TRI
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Load Structure
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Entry Load - Nil
Exit Load - 15 Days / 1% Effective from August 11, 2023
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Asset Allocation Pattern
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Under normal circumstances, the asset allocation pattern will be as follows
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Indicative allocations (% of total assets)
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Risk Profile
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Instruments
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Minimum
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Maximum
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High/Medium/Low
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Equity and Equity related instruments of companies with favorable Environmental,
Social and Governance (ESG) criteria
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80
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100
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Very High
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Other Equity and Equity related securities
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0
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20
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Very High
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Debt and Money market instruments*
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0
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20
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Low to Medium
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Units issued by REITs & InvITs
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0
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10
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very High
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*The Scheme retains the flexibility to invest across all the securities in the debt
and money markets as permitted by SEBI / RBI from time to time, including schemes
of mutual funds.
Overseas Investments: Under normal circumstances the Schemes shall not have
an exposure of more than 35% of its net assets in foreign assets/securities/instruments
including ADRs / GDRs, subject to applicable regulatory limits.
Trading in Derivatives: To optimally manage portfolio risk, the Scheme may
use various derivative instruments and hedging products in a manner permitted by
SEBI. The scheme may take exposure to derivative instruments up to 100% of net assets.
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Fund Manager
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Ankit Pande, Vasav Sahgal, Sanjeev Sharma
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Plans Available
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Regular Plan and Direct Plan. (The Regular and Direct plan will have a common portfolio)
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Options Available
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1.Growth Option and 2. IDCW
The IDCW option has the following facilities: (i) IDCW Reinvestment Facility. (ii)
IDCW Pay-out Facility. Default Investment option is Growth Option. For the IDCW
option, the default facility will be IDCW Reinvestment.
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Applicable NAV
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The NAV applicable for purchase or redemption or switching of Units based on the
time of the Business Day on which the application is time stamped.
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Risk Factors
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For detailed scheme/securities related risk factors, please refer to the Scheme
Information Document
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Investment strategy
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The investment strategy of the Scheme will be to invest in a basket of securities based on
combining existing traditional fundamental, bottom-up financial analysis along with a rigorous
analysis on the environmental, social and governance aspects of the company. The ESG analysis will
be based on a comprehensive ESG framework adopted from some of the global best practices.
The ESG process will be executed at various levels.
Sector level screening: The scheme will exclude sectors/themes that are deemed harmful from a
societal perspective. We will avoid investment in companies operating in those industries and maintain
that exclusion on an ongoing basis. For example we will not invest in companies involved in Cluster
Munitions, Anti- Personnel Mines, and Chemical and Biological Weapons. We will not hold any security
that is involved in the production, stockpiling, transfer and use of these weapons.
Stock level screening: Apart from sector exclusion list, we will not invest in stocks
which throw up ESG red flags as a part of our review, even if the company is from a sector
that is not a part of exclusion list.
Portfolio Construction: We believe that evaluating a company from an ESG perspective requires a
detailed qualitative approach that should complement our existing fundamental based investment process
workings rather than a simplistic standalone scoring based inclusion/exclusion matrix for individual stocks.
We intend to be active owners of the companies in which we invest and to reflect environmental, social and
governance (ESG) value drivers within our investment process by following below steps.
Step 1: Initial detailed ESG assessment of every company at the time of its inclusion in the investment universe
will be carried out. The assessment will be based on a detailed sector- specific questionnaire that will be completed
by the analyst in discussion with the company. Thus every company will undergo a detailed ESG due diligence in
addition to the fundamental ground work before entering the universe.
Step 2: Ongoing detailed assessment and evaluation of ESG issues or concerns will be carried out periodically
to ensure that changes to the operating environment are captured. In case of any concerns on ESG front indicating any
risk that may be detrimental to the long term shareholder value or in case of no evidence of any steps taken to
strengthen safety measures, may lead to exclusion of the security from the universe.
Step 3: In case of any specific ESG issue facing the company, a detailed review of the same to be carried out by the analyst and the impact discussed with the company management.
Step 4: Active engagement with the company management, ownership in terms of improved disclosure of ESG matters and voting on proxy items keeping ESG aspect in mind.
While the more traditional financial indicators and the analysis of business strategy form the basis of investment decisions, ESG factors may impact the investments in two ways – first through
size of position given its impact on the inherent risk to our financial forecasts and secondly through our view of the ultimate long term value of company based on its readiness to face some of
these issues, from both an upside and downside perspective. We will primarily focus on the longer term impact of ESG issues rather than unduly weighting factors which are currently occupying market attention.
The underlying theme driving the relative allocation will be QMML research‟s ability to identify cross asset, cross market
inflexion points. This quantitative approach is based on our proprietary VLRT framework, wherein we incorporate the full
spectrum of data along deeper aspects related to the three axis of Valuation, Liquidity, and Risk appetite and view it in
a dynamic setting – Time, thus, forming the multi-dimensional VLRT framework. The formulation of this macro narrative guides
our micro level stock selection.
QMML‟s predictive analytics toolbox formulates a multidimensional research perspective
to various asset classes. Research has shown that optimal entry and exit points into various asset
classes can be identified through the identification of bouts of extreme greed and fear in the market.
QMML differentiates itself by not only being able to identify bouts of greed and fear, but by its ability to
quantify bouts of euphoria and capitulation. This helps guide us in identifying the optimal level of
cash/debt Page 5 allocation in the scheme.
QMML may, from time to time, review and modify the Scheme‟s investment strategy if such changes are
considered to be in the best interests of the unitholders and if market conditions warrant it.
Though every endeavor will be made to achieve the objective of the Scheme, the AMC / Sponsors / Trustee
do not guarantee that the investment objective of the Scheme will be achieved. No guaranteed returns are
being offered under the Scheme.
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Statutory Details: Sponsor: quant Capital Finance & Investments
Private Limited
Investment Manager:quant Money Managers Limited. CIN: U74899MH1995PLC324387
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