ITI Large Cap Fund Direct Payout Inc Dist cum Cap Wdrl INF00XX01812

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

The process benefits from the size of its portfolio management team. With three portfolio managers at the helm, the fund is reasonably well-resourced. However, the rating is limited 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 outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 50% also detracts from the process.

This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Large-Cap Morningstar Category. But in terms of size exposure, it does not have much of a bias and resembles the typical portfolio. Looking at additional factor exposure, the managers have consistently overweighted yield-paying companies compared with Morningstar Category peers in recent years, shown by the portfolio's high exposure to stocks paying dividends or buying back shares. 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. Different from its historical appetite, however, the strategy was less exposed to the Yield factor compared with Morningstar Category peers in the most recent month. This strategy has had more exposure to high-momentum stocks over its peers in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, however, the strategy had less Momentum factor exposure in the latest month. During the last few years, this strategy has also tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. In this month, the strategy also had more exposure to the Quality 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 industrials and utilities relative to the category average by 6.6 and 4.2 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and consumer defensive, underweight the average by 4.9 and 3.4 percentage points of assets, respectively. The portfolio is positioned across 68 holdings and is less top-heavy than peers. Specifically, 42.6% of the portfolio's assets are concentrated within the top 10 fund holdings, as opposed to the category average's 51.8%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 88% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.