Touchstone Large Cap Fund Launched -Managed by The London Company Known For Concentrated Portfolios with High Conviction and High Active Share-
CINCINNATI, July 22, 2014 /PRNewswire/ -- Touchstone Investments, a mutual fund company providing access to respected institutional asset managers through sub-advisory relationships, has launched the Touchstone Large Cap Fund. The Fund is sub-advised by The London Company (TLC), which also serves as sub-advisor to the Touchstone Mid Cap Fund and the Touchstone Small Cap Core Fund1.
TLC uses the same investment strategy, as well as the same skilled investment team across all of its products. For the Touchstone Large Cap Fund, TLC will seek financially stable large-cap companies that it believes are consistently generating high returns on unleveraged operating capital, run by shareholder-oriented management, and are trading at a discount to their respective private market values. The Fund's concentrated, high conviction portfolio of 30-40 well-managed, highly predictable franchises, seeks to contribute meaningfully to returns.
TLC is valued for its experience managing high conviction, concentrated portfolios and has managed the Large Cap strategy for institutional investors since 1994. A byproduct of its differentiated approach is its portfolios with high Active Share levels, as evidenced by the Touchstone Mid Cap Fund at 96* percent and the Touchstone Small Cap Core Fund at 98* percent as of June 30, 2014. Active Share is a holdings-based measure used to determine how different a portfolio is from its benchmark. Active Share of 60 percent or higher is indicative of active management. Active Share of 20 percent to 60 percent is considered "closet indexing," and anything lower is labeled passive.
Touchstone believes that high Active Share and high manager conviction are good indicators that a strategy has the opportunity to outperform, making Active Share a valuable part of manager evaluation and fund analysis. "At Touchstone, we select and monitor institutional asset managers based on a meticulous process using a broad range of criteria, including organizational stability, personnel, investment discipline, infrastructure and performance," said Steven M. Graziano, President of Touchstone Investments. "We like managers who understand how they can add value through their deep fundamental process of selecting securities without compromising that value by over-diversifying. That is one reason why The London Company has served investors well."
"Outperformance is difficult to achieve if a fund owns most of what the benchmark owns, so we value Active Share," said TLC Founder Stephen M. Goddard, CFA, who serves as the firm's Managing Principal, Chief Investment Officer and lead portfolio manager. "We believe that being different from the benchmark helps us seek better results for investors. We view equity investing in the same pragmatic manner in which a conservative, rational business owner would, as if we were buying the entire company."
Goddard leads TLC's investment team and has more than 25 years of investment experience. Along with Goddard, TLC's investment team is composed of portfolio managers Jonathan T. Moody, CFA; J. Brian Campbell, CFA; Mark E. DeVaul, CFA, CPA; and Jeffrey E. Markunas, CFA, who collectively have 115 years of investment experience.
*Active share measures the percentage of the fund's holdings that differ from those of the benchmark. It is calculated by taking the sum of the absolute difference between all of the holdings and weights in the portfolio and those of the benchmark holdings and weights and dividing the result by two.
A Word About Risk
The Fund invests in equities which are subject to market volatility and loss. The Fund invests in stocks of large-cap companies which may be unable to respond quickly to new competitive challenges. The Fund is non-diversified, which means that it may invest a greater percentage of its assets in the securities of a limited number of issuers and may be subject to greater risks. Current and future portfolio holdings are subject to risk. The advisor engages the sub-advisor to manage the Fund's portfolio; the sub-advisor's judgment may impact the Fund's performance.
Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the Fund. To obtain a prospectus or a summary prospectus, contact your financial advisor or download and/or request one at TouchstoneInvestments.com/home/formslit/ or call Touchstone at 800.638.8194. Please read the prospectus and/or summary prospectus carefully before investing.
Investment return and principal value of an investment in a Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Investment products offered are not FDIC insured, may lose value and have no bank guarantee.
About Touchstone Investments
Touchstone Investments is a mutual fund company committed to providing investors with access to institutional asset managers who act in a sub-advisory capacity. While its sub-advisors are held to strict performance standards, they work with a large measure of independence and operate within their own demonstrated areas of expertise. Touchstone's sub-advisor selection and monitoring approach is built upon the conviction that an asset manager's organizational stability, quality of its personnel, adherence to its investment discipline and infrastructure represent the elements of repeatable, value-added performance results over time. This philosophy has resulted in a diverse but focused product offering that gives investors a full breadth of investment options across styles and asset classes. The Touchstone Funds are advised by Touchstone Advisors, Inc., a registered investment advisor, and are distributed nationally through intermediaries including broker-dealers, financial planners and institutions by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC. Touchstone, Touchstone Funds and Touchstone Investments are federal service mark registrations and applications owned by IFS Financial Services, Inc. Touchstone Securities, Inc., Touchstone Advisors, Inc. and IFS Financial Services, Inc. are members of Western & Southern Financial Group. For more information, please visit www.TouchstoneInvestments.com.
About Western & Southern Financial Group
Founded in Cincinnati in 1888 as The Western and Southern Life Insurance Company, Western & Southern Financial Group (Western & Southern) has grown into a diversified family of financial services companies. Its assets owned (approximately $43 billion) and managed (in excess of $27 billion) totaled more than $70 billion as of June 30, 2014. For more information on the Western & Southern family of companies, visit www.westernsouthern.com. Western & Southern is the title sponsor of the Western & Southern Open (www.wsopen.com), a premier event in the U.S. Open Series played each August by the world's top-ranked professional male and female tennis players.
About The London Company
The London Company is a registered investment advisor with over $8.7 billion in assets under management ($16.0 billion total assets2) as of June 30, 2014. It was founded by Stephen M. Goddard as the dedicated equity advisor to First Colony Corporation, a publicly traded Life Insurance Company. Today, the Richmond, Virginia based company provides large cap, income equity, small cap, small-mid cap, concentrated large cap, and mid cap equity portfolio management services to a diverse mix of corporations, trusts, foundations, endowments, pensions, banks, individuals, and mutual fund accounts. For more information, please visit www.tlcadvisory.com.
1Closed to certain new purchasers effective Sept. 21, 2012.
2Includes model assets of $8.0 billion as of 6/30/14.
SOURCE Touchstone Investments