UTI Banking and Financial Services Fund Growth INF789F01372

UTI Banking and Financial Services earns an Average Process Pillar rating.

The most significant contributor to the rating is the parent firm's five-year risk-adjusted success ratio of 64%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. Impressive risk-adjusted performance also contributes to the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. However, the process is limited by its parent firm's disappointing risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 2.8 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

This strategy leans toward smaller, higher-growth companies than its average peer in the Sector - Financial Services Morningstar Category. Examining additional factor exposure, this fund has constantly tilted toward stocks with higher trading volumes than its Morningstar Category Peers over the past few 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 recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. The strategy also had more exposure to high-quality stocks compared with Morningstar Category peers in recent months. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In addition, the strategy had similar exposure to high-yield stocks compared with Morningstar Category peers in recent months. 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, financial services and consumer cyclical, that are similar to the category. The sectors with low exposure compared with category peers are technology and healthcare; however, the allocations are similar to the category. The portfolio is composed of 34 holdings and its assets are more dispersed than peers in the category. In particular, 69.4% of the strategy's assets are concentrated in the top 10 fund holdings, compared to the category average's 73.6%. And finally, in terms of portfolio turnover, on a year-over-year basis, 59% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.