UTI Infrastructure Fund Regular Plan Growth INF789F01752

UTI Infrastructure earns an Average Process Pillar rating.

The main contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 69%. The measure indicates the percentage of a firm's funds that have outperformed their respective category's median return for the period. Management team experience, which averages 14 years at this fund, also supports the rating. However, the process is limited by the fund's unremarkable long-term risk-adjusted performance. This can be seen in its 10-year alpha calculated relative to the category average, which suggests that the process has struggled over that period.

This strategy leans toward larger, higher-growth companies compared with its average peer in the Equity - Infrastructure Morningstar Category. Examining additional factor exposure, this strategy has continually underweighted stocks that have a lower standard deviation of returns compared with Morningstar Category peers over the past few years. These low-risk stocks are typically at their best when markets are not. Low volatility exposure contributes to limited loss on the downside at the cost of a lag in bull markets. In the latest month, the strategy was also less exposed to the Volatility factor compared with Morningstar Category peers. This strategy has also favored low-quality stocks. This means the fund avoids holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. 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. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings fall. In this month, however, the strategy had more exposure to the Yield factor 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 communication services and energy relative to the category average by 9.2 and 4.5 percentage points, respectively. The sectors with low exposure compared with category peers are basic materials and financial services, underweight the average by 7.0 and 3.1 percentage points of assets, respectively. The strategy owns 56 securities and is relatively top-heavy. Of the strategy's assets, 56.3% are concentrated within the top 10 holdings, as opposed to the typical peer's 29.1%.