Quant Value Fund Direct Reinvestment Inc Dist cum Cap Wdrl INF966L01AP8

Quant Value Fund earns an Above Average Process Pillar rating.

The leading factor in 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 4.8 stars. The parent firm's five-year risk-adjusted success ratio of 100% also contributes to 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 commendable 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 five portfolio managers.

This strategy tends to hold smaller, more value-oriented 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. 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. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. In addition, the portfolio has tended to underweight yield, as shown in its lower exposure to companies that pay dividends or buy back shares than peers over these 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 consumer defensive and utilities relative to the category average by 7.2 and 5.3 percentage points, respectively. The sectors with low exposure compared with category peers are technology and consumer cyclical, underweight the average by 7.3 and 4.3 percentage points of assets, respectively. The portfolio is composed of 33 holdings and is quite concentrated. Specifically, 62.1% of the portfolio's assets are housed within the top 10 holdings, versus the category’s 40.4% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 96% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.