Quantum ESG Best In Class Strategy Fund Direct Growth INF082J01382

Quantum ESG Best In Class Strategy Fund earns a Below Average Process Pillar rating.

The rating is held back by the parent firm's five-year risk-adjusted success ratio of 29%. 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 relatively low success ratio suggests that the firm could do better across its fund lineup. The parent firm's disappointing risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 2.5 stars, also holds the process back. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy tends to hold smaller, more value-oriented companies compared with its average peer in the Equity - ESG Morningstar Category. Analyzing additional factors, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, the strategy also had more exposure to the Liquidity 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. 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 consumer cyclical and consumer defensive relative to the category average by 14.1 and 4.3 percentage points, respectively. The sectors with low exposure compared with category peers are financial services and communication services, underweight the average by 10.4 and 2.8 percentage points of assets, respectively. The portfolio is positioned across 61 holdings and is less top-heavy than peers. Specifically, 31.2% of the portfolio's assets are concentrated within the top 10 fund holdings, as opposed to the typical peer's 39.3%.