Quant Value Fund Direct Growth INF966L01AN3

Quant Value Fund earns an Above Average Process Pillar rating.

The most significant contributor to 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 influences the rating. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Their noteworthy 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, deeper value companies compared with its average peer in the Value Morningstar Category. Analyzing additional factors, the managers have continually shown a willingness to take risks over the last few years, demonstrated by the portfolio's high volatility exposure. Such exposure tends to pay off when markets are hot and to be costly when they are not. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt towards more high-liquid assets over peers in recent years, evidenced by consistently holding companies with relatively higher trading volumes. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In the most recent month, however, the fund's Liquidity exposure was in line with the Morningstar Category average. Additionally, this strategy has had lower yield exposure than peers, with the portfolio holding fewer stocks with high dividend or buyback yields over these years. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide steady income payments, they may cut payouts if their earnings fall. 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 industrials relative to the category average by 11.2 and 4.7 percentage points, respectively. The sectors with low exposure compared with category peers are technology and consumer cyclical, underweight the average by 6.7 and 5.2 percentage points of assets, respectively. The portfolio is positioned across 36 holdings and is quite concentrated. More concretely, 61.9% of the strategy's assets are housed within the top 10 holdings, compared to the category average of 39.2%.