Quant Mutual Fund answers FAQs on Sebi probe, returns expectations

Notwithstanding the Sebi investigation on the asset management firm in a front-running case, Quant Mutual Fund today assured investors that the fund house is functioning normally and that the performance of its schemes should be at par with its style.

“Returns are a by-product of research capabilities and style of management. In Quant, we manage risk dynamically to give superior risk-adjusted returns. As mentioned, we are functioning normally and hence, the performance should be at par with our style,” Quant said in a communique.

The company has released a list of 7 FAQs (frequently asked questions) on the front-running crisis and its impact.

On the enquiry, it said that this is a regular ongoing process globally by the regulator to collect data and analyze it. No one from the fund house has been convicted yet as Quant Mutual Fund has not received any further communication after the initial enquiries. The two offices in Mumbai are functioning normally and with full capacity, it said.

Quant Mutual Fund mentioned that as of June 26, cash and liquid investments were around 53.49% of closing equity asset under management (AUM) of Rs 88,270 crore and over the last three days, net redemptions have totaled only 1.5% of closing AUM, which is a small figure.

Quant’s operations are running smoothly, “with our full focus on managing our portfolio and investment strategies diligently”, CEO Sandeep Tandon said addressing stakeholders. “It’s important to clarify that we have received inquiries from the regulator, and we are in full co-operation with the concerned authorities. There since have been no further developments.” Tandon said the fund house has outperformed even in challenging circumstances. “Throughout our history, Quant Mutual Fund has demonstrated resilience and outperformance in challenging circumstances, such as during the Hindenburg fiasco and the recent Indian general elections, where we strategically managed our portfolio to mitigate risks associated with public sector banks and PSUs, showcasing a mature and balanced approach to portfolio management.”“Our track record of navigating market uncertainties, including accurately predicting market movements such as Nifty surpassing 24,000 and Bank Nifty potentially reaching over 54,000 in CY24. These insights reflect our confidence in our analytical capabilities and strategic approach,” mentioned Tandon.

Going ahead, the fund house maintains a constructive outlook on sectors like banks and consumption, the CEO said, adding that “we see no major challenges for the broader Indian equity market in the long term. Our investment thesis remains optimistic about India’s prospects over the coming decade”.