ITI Banking and Financial Services Fund Direct Growth INF00XX01BU6

ITI Banking and Financial Services Fund earns a Below Average Process Pillar rating.

The process is bolstered by its team of two portfolio managers, which is sufficient to execute the process. 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 detracts from the process.

This strategy tends to pick smaller market-cap companies compared with the average fund in its peer group, the Sector - Financial Services Morningstar Category. But in terms of style (value/growth) exposure, it is similar. Analyzing additional factors, the managers have continually exhibited a willingness to take risks over the last few years, demonstrated by the portfolio's high volatility exposure. This is a higher-risk, higher-reward approach. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy also has had a position favoring high-quality stocks in recent years, which could contribute to higher downside risk protection. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it endure downturns better than Morningstar Category peers. In the most recent month, however, the fund's Quality exposure was in line with the Morningstar Category average. Furthermore, this strategy has leaned toward low-yield stocks over recent years, holding fewer companies with high dividend or buyback yields. 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. Nevertheless, the fund's Yield exposure was in line with peers in the latest month. 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, technology and consumer cyclical, that are similar to the category. The sectors with low exposure compared with category peers are financial services and healthcare; however, the allocations are similar to the category. The strategy owns 32 securities and invests 74.7% of assets in its top 10 holdings, similar to the category average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 179% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.