Quantum Mutual Fund's Mega Transition with HWIC Asia Fund Investment

Most of you are aware of the mega transition that's happening at Quantum Mutual Fund where HWIC Asia Fund ("HWIC"), an affiliate of Fairfax Financial Holdings Limited is soon to be a stakeholder (holding 49.2% equity shares) in our Sponsor, Quantum Advisors. SEBI has provided its No Objection for the proposed transactions and the notice and letters concerning the same were published in newspapers and sent out to investors respectively.

While all of us at Quantum are highly excited about the new wave of change that's coming our way, some investors wrote to us to understand how these changes would impact them. Below we have attempted to address some questions many investors might have in mind -

Q. Will the DNA of Quantum change with Fairfax coming in?

There will be no changes to the DNA of Quantum AMC or its Sponsor, Quantum Advisors. The management and investment style and teams shall remain unchanged.

Q. What role will Fairfax play in the AMC management?

There will be no representative of Fairfax Group on the Board of the Quantum AMC. Quantum Mutual Fund will continue to follow the investment philosophy for the various mutual funds. There would be no change in the schemes of Quantum Mutual Fund. Also HWIC Asia will not be involved in the day to day management and operations of the business of Quantum Advisors, Quantum AMC and Quantum Trustee Company, including research and portfolio management, but will enjoy customary minority protection rights as a passive financial shareholder.

Q. Will the AMC start doing business with Intermediaries as in paying them fees as against now where we are paying zero commission?

As we have always stated, we have no desire to be part of an opaque distribution system. We have clearly stated that we are willing to pay fees to intermediaries provided they disclose the fees they earn from us to their investors and clients. For the past 10 years of our existence, the distribution system has not changed. However, regulatory pressures may force change and - if the system adopts transparency - we will be able to reach out to more investors via the distributor channels. But if there is no transparency, we will not be part of the opaque system. We would like to reiterate that there will be no change in anything that we do. Our team-based approach to investing, our focus on low costs, our transparency, our core values will not change: it is precisely these characteristics which have been appreciated by thousands of investors in Quantum Mutual Fund and by Fairfax.

Q. What about annual charges which, at present, are at 1.25% for Quantum Long Term Equity Fund or so? Will this increase?

We would always look to reduce costs and pass on the benefits to our investors. Our aim continues to offer low cost, simple, sensible, long term products to the growing number of mutual fund investors who are seeking a simpler, inexpensive and easier way to invest their hard-earned savings.

Q. How will the change impact investors?

With the investment of Fairfax as a passive financial shareholder, which will inject additional capital, Quantum AMC is in a position to meet the revised minimum net worth requirements of Rs. 50 crore and also have the ability to be more visible to a growing number of investors who want to know more about Quantum Mutual Fund.
With Fairfax backing us, we will be able to keep walking along the path chartered so far with added power. We will continue to serve investors with the highest standards of integrity, ethics, and transparency. The capital that Fairfax will inject into Quantum AMC through the sponsor will enable us to -
• Get more visible to investors by being nearer to them with technology,
• Continue our crusade of always putting the needs of investors first,
• Lower costs of investing,
• Offer simple, honest products that make sense for investors,
• Visit new cities and towns to meet new people through our Path to Profit events

Better days ahead for us all!

In the days and months to come we envision that Quantum funds and services will reach the masses on a much larger scale than we have ever attempted so far. We hope that we will continue to enjoy the support and goodwill of our existing investors throughout. We hope that each of you will stay with us on this journey to profit, and not take a mid-route exit.

By now the physical letter on exit option (which is a regulatory requirement to be extended to investors whenever there is a major change in an AMC or its schemes) would have reached all investors. We are confident that our prudent investors will make the right decision about the investments they made with us for the long term and hold on until their goal is reached.

While we cannot guarantee that the journey to profit we are on together will be short and quick, but what we do guarantee is that it will be an adventurous one and we would endeavor to help you to reach your personal investment destinations, without ever being misled enroute.

Name of the Scheme & Primary Benchmark	This product is suitable for investors who are seeking*	Risk-o-meter of Scheme
Quantum Long Term Equity Value Fund An Open Ended Equity Scheme following a Value Investment Strategy	• Long term capital appreciation • Invests primarily in equity and equity related securities of companies in S&P BSE 200 index.	Investors understand that their principal will be at Moderate Risk

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article 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 solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.

Above article is authored by Quantum.

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