Quant Large and Mid Cap Fund Growth INF966L01341

Quant Large and Mid Cap earns an Above Average Process Pillar rating.

The leading factor in the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 4.6 stars. The parent firm's five-year risk-adjusted success ratio of 100% also bolsters the rating. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their noteworthy success ratio suggests that the firm does well for investors and that this fund may benefit from that. However, the process is limited by the size of its portfolio management team, with seven portfolio managers.

This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Large & Mid-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Analyzing additional factors, this strategy has exhibited a tilt toward high-volatility stocks or the shares of companies with histories of the higher standard deviation of returns, compared with Morningstar Category peers in the last few years. This contributes to 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'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. In addition, the strategy had less exposure to high-liquidity stocks compared with Morningstar Category peers in recent months. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. 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 industrials relative to the category average by 11.9 and 8.1 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and consumer cyclical, underweight the average by 13.2 and 8.0 percentage points of assets, respectively. The strategy owns 41 securities and is relatively concentrated. In particular, 52.3% of the strategy's assets are housed within the top 10 holdings, as opposed to the typical peer's 31.5%.