SBI ESG Exclusionary Strategy Fund Regular Payout Inc Dist cum Cap Wdrl INF200K01198

SBI ESG Exclusionary Strategy earns a High Process Pillar rating.

The leading factor in the rating is its parent firm's superior long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.7 stars. The parent firm's five-year risk-adjusted success ratio of 69% also influences the rating. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Their compelling success ratio suggests that the firm does well for investors and that this fund may benefit from that. The size of the portfolio management team contributes to the process as well. With two portfolio managers at the helm, the fund is reasonably well-resourced.

This strategy prefers larger market-cap companies compared with the average fund in its peer group, the Equity - ESG Morningstar Category. But in terms of investment style, it is on par with peers. Examining additional factor exposure, this strategy has consistently favored low-quality stocks compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy's portfolio also has had exposure to more stocks with high dividend or buyback yields over peers in these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. 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. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. 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 financial services and industrials relative to the category average by 3.1 and 2.8 percentage points, respectively. The sectors with low exposure compared with category peers are communication services and healthcare, with communication services underweighting the average portfolio by 3.8 percentage points of assets and healthcare similar to the average. The portfolio is composed of 41 holdings and is relatively top-heavy. Of the strategy's assets, 52.5% are concentrated within the top 10 holdings, compared to the category’s 39.6% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 24% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.