ITI Banking and Financial Services Fund Regular Growth INF00XX01BR2

ITI Banking and Financial Services Fund earns a Below Average Process Pillar rating.

The process benefits from its team of two portfolio managers, which is sufficient to execute the process. However, the rating is limited by the parent firm's five-year risk-adjusted success ratio of 9%. 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 56% also weakens the process.

This strategy tends to pick smaller market-cap firms compared with the average fund in its peer group, the Sector - Financial Services Morningstar Category. But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Analyzing additional factors, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. Different from its historical appetite, however, the Quality factor was in line with the Morningstar Category average in recent months. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical 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. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, the strategy had more exposure to high-momentum stocks compared with Morningstar Category peers in recent months. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. 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 has allocations in its top two sectors, technology and consumer cyclical, that are similar to the category. The sectors with low exposure compared with category peers are financial services and healthcare; however, the allocations are similar to the category. The portfolio is composed of 35 holdings and invests 69.1% of assets in its top 10 holdings, similar to the category average.