ITI Large Cap Fund Regular Payout Inc Dist cum Cap Wdrl INF00XX01788

ITI Large Cap Fund earns a Below Average Process Pillar rating.

The process is strengthened by the size of its portfolio management team. With three portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is held back by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 50% also limits the process.

This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Large-Cap Morningstar Category. But in terms of size exposure, it is similar to the average. Looking at additional factor exposure, the managers have consistently overweighted yield-paying companies compared with Morningstar Category peers in recent years, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. Higher-yield stocks can provide steady income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. Different from its historical appetite, however, the strategy was less exposed to the Yield factor compared with Morningstar Category peers in the most recent month. This strategy has also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. Compared with category peers, however, the strategy had less Momentum factor exposure in the latest month. During the last few years, this strategy has also tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In this month, the strategy also had more exposure to the Quality factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in industrials and utilities relative to the category average by 6.6 and 4.2 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and consumer defensive, underweight the average by 4.9 and 3.4 percentage points of assets, respectively. The portfolio is positioned across 68 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 42.6% of the strategy's assets were concentrated in the top 10 fund holdings, compared to the category average's 51.8%. And finally, in terms of portfolio turnover, on a year-over-year basis, 88% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.