Canara Robeco Focused Equity Fund Direct Payout of Income Dist cum Cap Wdrl INF760K01JS2

Canara Robeco Focused Equity Fund earns a Below Average Process Pillar rating.

The process is strengthened by its team of two portfolio managers, which is enough to execute the process. However, the rating is weakened by the parent firm's five-year risk-adjusted success ratio of 34%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 67% also weakens the process.

This strategy leans toward larger, higher-growth companies compared with its average peer in the Focused Fund Morningstar Category. Analyzing additional factors, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Different from its historical appetite, however, the strategy was less exposed to the Momentum factor compared with Morningstar Category peers in the most recent month. This strategy has also leaned away from the stocks of companies with high dividend or buyback yields over these years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings decline. In the most recent month, however, the fund's Yield exposure was in line with the Morningstar Category average. Additionally, the managers have consistently taken on more risk, demonstrated by higher volatility exposure than peers. This orientation tends to pay off most prominently when markets are hot. In this month, the strategy also had more exposure to the Volatility 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 has allocations in its top two sectors, healthcare and technology, that are similar to the category. The sectors with low exposure compared with category peers are financial services and communication services, with financial services underweighting the average portfolio by 5.1 percentage points of assets and communication services similar to the average. The portfolio is composed of 31 holdings and is quite concentrated. Specifically, 47.2% of the portfolio's assets are housed within the top 10 holdings, as opposed to the category’s 33.9% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 43% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.