Disclosure Statement

1. Q India Value Equity Composite (Composite) is an aggregation of Client portfolios under the Q India Value Equity Strategy with a similar investment mandate and with no cash restrictions that are managed or advised by Quantum Advisors on a discretionary basis using the long only value equity strategy. The Composite does not include all client portfolios due to various client-imposed portfolio restrictions, even though all portfolios in this broad mandate are managed using the same strategy. The Composite represents 0.04% of the total AUM under the Q India Value Equity Strategy as on January 31, 2024.

2. Composite Gross return stated above are the returns achieved before the deduction of all fees and expenses except trading cost. Composite’s Net returns are computed net of fees and expenses. All returns stated above are assuming reinvestment of all dividend and other earnings. Returns from cash and cash equivalents held in portfolios are included in the return calculations.

3. The various constituents of the Composite pay different management fees. The net-of-fee and expense returns of the Q India Value Equity Composite indicated in tables in this newsletter reflect the weighted average management fees paid to Quantum Advisors Pvt Ltd (QAPL) by the different constituents of the Composite.

4. As the different constituents of the Composite are subject to different management fee structures, the actual performance experienced by a constituent of the Composite may be worse or better than the net-of-fee-and-expense returns of the Composite.

5. The return shown in the graphs in this document are calculated using Time Weighted Rate of Return (“TWRR”) method.

6. The firm has formulated an internal policy and procedures on inclusion, exclusion of the portfolio accounts and factoring significant cash flows for computing the performance of Composite which will be available upon request.

7. Upside Potential of Q India Value Equity Composite - methodology of calculation and other information to understand the criteria, assumptions, risks & limitations - The referenced Upside Potential shows the two years forward estimate of rebased NAV on the basis of upside potential of the Q India Value Equity Composite portfolio (“Value Composite”). Upside Potential is equal to the sum total of [weight of each stock in the portfolio (multiplied by) the percentage difference between the current market price and the Sell limits assigned to the stock by our in-house Research team]. We use various metrics to value companies based on different valuation ratios such as Dividend yields, price to earnings, price to cash flow, price to book value etc. While valuing the companies, we take in to account the environment in which they operate, their management quality, their financial strength and other fundamental criteria, their historical valuation and peer group valuation. Sell limit of a stock is our research team’s long-term assumptions on the intrinsic value of the company, estimated typically on a 2-year forward basis. The valuation of a company is done on the basis of normalised assumptions. It means that we do not value the companies on the basis of peak or trough margins. However, we do not guarantee that the Upside Potential indicated above for the future will actually be achieved and the actual returns of an individual client account may or may not be in line with the estimated Upside Potential of the Composite portfolio, including the fact that there exists a possibility of loss. The computation of Upside Potential is dynamic in nature and varies based on factors such as change in market prices of the stocks, change in portfolio composition due to investment decisions by the portfolio manager or due to corporate actions at issuers, and revisions in Sell limits assigned to the stocks by the Research Team due to changes in various macro-economic as well as company/industry specific factors. The computation of rebased NAV 2 years forward is based on assumption that the current portfolio composition and the fees and expenses of the account remain unchanged, and the current Sell Limit of the stocks converges into actual market price at the end of the period. Past performance does not guarantee and is not indicative of future results. Future performance may be lower or higher than the data quoted, including the possibility of the loss.

8. The returns of individual client accounts may vary from the returns of the Composite on account of difference in fees and expenses charged to each of the client accounts and any cash or stock level constraints imposed by the client on the portfolio manager’s discretion.

9. The "Index" is a product of Asia Index Private Limited (AIPL), which is a joint venture of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and BSE has been licensed for use by QAPL.  Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); BSE® is a registered trademark of BSE Limited (“BSE”); and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). © Asia Index Private Limited 2021. All rights reserved. Redistribution, reproduction and/or photocopying in whole or in part are prohibited without written permission of AIPL. For more information on any of AIPL’s indices please visit http://www.asiaindex.com/.  None of AIPL, BSE, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and none of AIPL, BSE, S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC or their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

10. S&P BSE 500 is a free-float-adjusted, market-cap-weighted index of 500 companies listed on the Bombay Stock Exchange.

11. S&P BSE 500 comprises of stocks which are highly liquid (predominantly Large Cap) and broadly covers our investment universe under this investment strategy. Hence, we believe it makes a good benchmark as the portfolio has a bias towards highly liquid stocks. However, the Composite’s performance may not be strictly comparable with the performance of the Benchmark, due to inherent differences in the construction of the portfolios, and the volatility of the benchmark over any period may be materially different than that of the composite over the same period.

12. The firm sources benchmark-related data from Bloomberg.

13. Data of other indices is provided for information purposes only and to allow investors to compare the performance of the Composite to that of certain indices (many of which are well known and widely recognized). While we generally believe these comparisons provide meaningful and useful information to investors (for example, as a way of comparing an investment in the Composite to other types of investments that investors might make), inclusion of any particular index is not a representation that the index is an appropriate benchmark for evaluating the Composite’s performance. In particular, the volatility of indices over any period may be materially different from that of the Composite over that same period.

14. All INR to USD conversion has been done based on RBI FX Rates till May 2010, and WM Reuters Closing Spot Rates (4pm UK time) from June 2010 onwards.

15. This monthly report is strictly for information purposes. Investments in the Portfolio Account are not guaranteed or insured and are subject to investment risks, including the possible loss of the principal amount invested. The value of the Portfolio Account and the income from it may fall as well as rise. Past performance is not necessarily indicative of future performance. QAPL reserves the right to make any changes and corrections to its opinions expressed in this document at any time, without notice. Information sourced from third parties cannot be guaranteed and has not been independently verified. Comments made herein are not necessarily indicative of future or likely performance of the Portfolio Account and are based on information and developments as on January 31, 2024, unless otherwise stated.

16. All of the forward-looking statements made in this communication are inherently uncertain and QAPL cannot assure the reader that the results or developments anticipated by QAPL will be realized or even if realized, will have the expected consequences to or effects on, us or our business prospects, financial condition or results of operations. A prospective investor can generally identify forward-looking statements as statements containing the words “will”, “should”, “can”, “may”, “believe”, “expect”, “anticipate”, “intend”, “contemplate”, “estimate”, “assume”, “target”, “targeted” or other similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this communication apply only as of the date of this communication. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if internal estimates change, unless otherwise required by applicable Securities laws.

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Annexure 1

Table: Performance of the Q India Value Equity Composite computed as per methodology prescribed under SEBI guidelines