Canara Robeco Emerging Equities Direct Plan Growth Option INF760K01EI4

Canara Robeco Emerging Equities earns an Average Process Pillar rating.

The most notable contributor to the rating is the fund's excellent long-term risk-adjusted performance. This can be seen in its ten-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. The size of the portfolio management team also supports the process. With two portfolio managers, the fund is reasonably well-resourced. However, the process is limited by the parent firm's five-year risk-adjusted success ratio of 40%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

This strategy leans toward larger, higher-growth companies compared with its average peer in the Large & Mid-Cap Morningstar Category. Examining additional factor exposure, this strategy has shown a strong tendency to hold fewer stocks with high dividend or buyback yields compared with Morningstar Category peers in recent 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 the latest month, the strategy was also less exposed to the Yield factor compared with Morningstar Category peers. This strategy has had more exposure to high-momentum stocks over its peers in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. In addition, this strategy has exhibited a tilt toward liquid assets, evidenced by consistently holding companies with relatively higher trading volumes. 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 this month, the strategy also had more exposure to the Liquidity factor over 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 cyclical by 16.2 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. The sectors with low exposure compared with category peers are financial services and energy, underweight the average by 4.3 and 3.3 percentage points of assets, respectively. The portfolio is composed of 100 holdings and is relatively top-heavy. Of the strategy's assets, 39.9% are concentrated within the top 10 holdings, as opposed to the category’s 32.6% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 44% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.