UTI Focused Fund Regular Payout Inc Dist cum Cap Wdrl INF789F1AUZ2

UTI Focused Fund earns an Average Process Pillar rating.

The largest contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 64%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Low expenses across its parent firm's funds, whose fees, on average, rank in the middle quintile of their respective category, also support the process. The pattern of low expenses at the firm indicates that it is focused on delivering strong results for investors. However, the process is limited by its parent firm's subpar risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy is similar to its Focused Fund category peers in terms of market-cap and style exposure. Looking at additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has also leaned away from the stocks of companies with high dividend or buyback yields over these years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. Compared with category peers, however, the strategy had more exposure to the Yield factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This contributes to a higher-risk, higher-reward approach. 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 is overweight in consumer defensive and technology relative to the category average by 3.6 and 3.3 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and healthcare, underweight the average by 5.4 and 2.8 percentage points of assets, respectively. The portfolio is composed of 31 holdings and is relatively top-heavy. Of the strategy's assets, 54.2% are concentrated within the top 10 holdings, compared to the category’s 33.9% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 14% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.