ITI Small Cap Fund Regular Growth INF00XX01713

ITI Small Cap Fund earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is enough 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 beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 50% also limits the process.

This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Small-Cap Morningstar Category. But in terms of size exposure, it is similar to the average. Examining additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy has not maintained a defensive tilt, demonstrated by low exposure to the quality factor. This means the fund avoids holding firms that are consistently profitable, growing, and have solid balance sheets. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. Nevertheless, the fund's Quality 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 basic materials and technology relative to the category average by 6.3 and 6.0 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and energy, with consumer cyclical underweighting the average portfolio by 8.9 percentage points of assets and energy similar to the average. The portfolio is positioned across 82 holdings and is quite concentrated. More concretely, 20.4% of the strategy's assets are housed within the top 10 holdings, as opposed to the category average of 13.7%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 125% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.