Quant Value Fund Direct Payout Inc Dist cum Cap Wdrl INF966L01AO1

Quant Value Fund earns an Above Average Process Pillar rating.

The main driver of the rating is its parent firm's excellent 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 strengthens the process. The measure indicates the percentage of a firm's funds that have beat 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 undervalued companies than its average peer in the Value Morningstar Category. Looking at additional factor exposure, 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. This contributes to a higher-risk, higher-reward approach. 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 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 the most recent month, however, the fund's Liquidity exposure was in line with the Morningstar Category average. In addition, this strategy has exhibited a tendency to hold fewer stocks with high dividend or buyback yields over 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. 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 strategy owns 36 securities and is quite concentrated. Specifically, 61.9% of the strategy's assets are housed within the top 10 holdings, compared to the typical peer's 39.2%.