SBI ESG Exclusionary Strategy Fund Direct Payout Inc Dist cum Cap Wdrl INF200K01SC4

SBI ESG Exclusionary Strategy earns a High 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 3.7 stars. The parent firm's five-year risk-adjusted success ratio of 62% also supports 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 noteworthy success ratio suggests that the firm does well for investors and that this fund may benefit from that. The firm's five-year retention rate of 83% reinforces the process as well.

This strategy sticks with larger market-cap firms compared with the average fund in its peer group, the Equity - ESG Morningstar Category. But in terms of style (value/growth) exposure, it is similar. Examining additional factor exposure, this strategy has consistently favored low-quality stocks compared with Morningstar Category peers over the past few years. Such positions do not tend to provide much ballast for a portfolio. Different from its historical appetite, however, the Quality factor was in line with the Morningstar Category average in recent months. This strategy has also exhibited a tilt toward low-volatility stocks in recent years, meaning companies with a lower historical standard deviation of returns. These companies have historically been a valuable ballast to steady portfolio returns during market downturns. Similarly, in recent months, the strategy also had less exposure to the Volatility factor than peers. In addition, this strategy has shown a tendency to hold fewer stocks with high dividend or buyback yields over peers in recent years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings decline. 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 is overweight in industrials and financial services relative to the category average by 5.3 and 2.7 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 3.9 percentage points of assets and healthcare similar to the average. The strategy owns 42 securities and is relatively concentrated. Specifically, 50.2% of the strategy's assets are housed within the top 10 holdings, compared with the category’s 39.3% average.