Invesco India ESG Integration Stategy Fund Direct Growth INF205KA1338

Invesco India ESG Integration Stgy Fund earns an Average Process Pillar rating.

The leading factor in the rating is the experience of the management team, which averages 15 years at this fund. The size of the portfolio management team also bolsters the rating. With two portfolio managers, the fund is reasonably well-resourced. However, the process is limited by its parent firm's inferior risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.7 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy tends to hold smaller, more growth-oriented companies compared with its average peer in the Equity - ESG Morningstar Category. Analyzing additional factors, this strategy has constantly downplayed yield, with its portfolio holding fewer companies with high dividend or buyback yields compared with Morningstar Category peers in recent years. Returning capital to shareholders often is not the highest priority of such businesses. The shares of such companies can deliver strong returns if they fulfill their growth projections, but they also carry more risk. Different from its historical appetite, however, the Yield factor was in line with the Morningstar Category average in recent months. This strategy also has tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity, during these years. This means the fund holds consistently profitable, growing companies with solid balance sheets that may help it weather downturns better than Morningstar Category peers. Compared with category peers, the strategy also had more exposure to the Quality 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. This orientation tends to pay off most prominently when markets are hot. 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 healthcare and technology relative to the category average by 5.9 and 5.3 percentage points, respectively. The sectors with low exposure compared with category peers are consumer cyclical and energy, underweight the average by 4.6 and 3.3 percentage points of assets, respectively. The portfolio is positioned across 37 holdings and is relatively concentrated. Specifically, 48.7% of the fund’s assets are housed within the top 10 holdings, compared with the typical peer's 39.3%.