Quant Mutual Fund has confirmed that it is under investigation by the Securities and Exchange Board of India (SEBI) regarding suspected front-running activities. The mutual fund company has sent an email to its investor and assured its commitment to fully cooperate with SEBI and maintain transparency throughout the process.
In recent years most of the mutual funds by Quant have been performing really well, its investors have made a lot of money by making investments with Quant. The recent allegation and investigation by SEBI have raised some critical questions among investors of the Quant mutual fund.
To officially address the current situation company has emailed the FAQs to all the investors which are as follows.
1. Has the SEBI enquiry concluded?:
Answer: No, it is a regular ongoing process globally by regulators to collect data and analyze it.
2. Has anyone been convicted?:
Answer: No. It is the regulator’s job to collect and analyze data on an ongoing basis. We have not received any communication after initial enquiries.
3. Are there any SEBI team personnel stationed in your office?:
Answer: We have not heard from the regulators after their visit and no one is stationed in our office.
4. Are your offices functioning normally?:
Answer: We have only two offices in Mumbai (Prabhadevi and Bandra) and both are functioning normally and at full capacity.
5. Are all team members attending the office?:
Answer: Yes. Everyone including sales, investment, dealing, finance, IT and others is working normally.
6. Can the team at Quant MF deliver similar returns after this enquiry?:
Answer: 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.
7. What is the liquidity situation of the portfolio?:
Answer: As of 26th June, ’24, cash and liquid investments were 53.49% of closing equity AUM of INR 88,270cr and over the last three days, net redemptions have totalled only 1.5% of closing AUM, which is a small figure.
Quant MF CEO, Sandeep Tandon, addressed a few stakeholders on the webinar and shared his perspective on some of these queries in person. Below are the links to the unedited version of the video conference for your reference:
Link 1: https://quantmutual.com/images/quant_mf-Video_on_June_26th.mp4
Link 2: https://quanttransaction.quantmutual.com:722/video/26062024.mp4
