Quant Mutual Funds has recently released a set of FAQs for investors to address concerns following SEBI's recent actions against the fund house.
This comes after a search and seizure operation was conducted by the market watchdog at the offices of Quant Mutual Fund, founded by Sandeep Tandon, over suspected front-running activities.
"Currently, our operations are running smoothly with our full focus on managing our portfolio and investment strategies diligently. 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," the company stated in an email sent to investors.
As of June 26th, the company has about 53.5 per cent of its total assets under management (Rs 88,270 crore) in liquid assets like large-cap stocks, T-bills, G-Secs, Gold, and Silver. Over the past three days, there was a net outflow of equity from their portfolio, amounting to only 1.5 per cent of their total AUM. "Gross inflows into our funds have remained steady," the company said.
Following were the FAQs:
1. Has the SEBI enquiry concluded?
No, it a regular ongoing process globally by regulator to collect data and analyze it.
2. Has anyone been convicted?
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?
We have not heard from the regulators after their visit and no one is stationed in our office.
4. Are your offices functioning normally?
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 office?
Yes. Everyone including sales, investment, dealing, finance, IT and others are working normally.
6. Can the team at quant MF deliver similar returns after this enquiry? 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?
As of June 26, cash and liquid investments were 53.49 per cent of closing equity AUM of Rs 88,270 crore and over the last three days, net redemptions have totaled only 1.5 per cent of closing AUM, which is a small figure.
