Quant ESG Equity Fund Regular Reinvestment of Income Distribution cum capital withdrawal option INF966L01AF9

Quant ESG Equity Fund 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 process. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their relatively high 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 leans toward smaller, more value-oriented companies compared with its average peer in the Equity - ESG Morningstar Category. Analyzing additional factors, this strategy has consistently overweighted the volatility factor compared with Morningstar Category peers over the last few years, meaning it invests in stocks with a history of the higher standard deviation of returns. 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 recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also been exposed to liquid stocks during these years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to experience a significant loss. Compared with category peers, however, the strategy had less Liquidity factor exposure in the latest month. In addition, this strategy has displayed lower yield exposure than peers, holding fewer companies with high dividend or buyback yields over recent years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. In recent months, the strategy also had less Yield factor exposure than 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 utilities and energy relative to the category average by 11.6 and 8.7 percentage points, respectively. The sectors with low exposure compared with category peers are industrials and technology, underweight the average by 9.7 and 9.2 percentage points of assets, respectively. The portfolio is composed of 22 holdings and is relatively top-heavy. Of the strategy's assets, 75.7% are concentrated within the top 10 holdings, compared to the category’s 39.3% average.