CINCINNATI, March 2, 2017 /PRNewswire/ -- Touchstone Investments has reopened the Touchstone Merger Arbitrage Fund to new investors. The Fund is sub-advised by Longfellow Investment Management Co. (Longfellow), which also serves as sub-advisor to the Touchstone Arbitrage Fund.
"With market volatility and rising interest rates presenting a threat to traditional portfolios, astute investors are increasingly looking for investment strategies that complement traditional stock and bond holdings," said Steven Graziano, president of Touchstone Investments. "We are extremely pleased to offer those investors another option as we open the Touchstone Merger Arbitrage Fund to new investors so they can benefit from Longfellow's extensive merger arbitrage investment expertise."
The Touchstone Merger Arbitrage Fund seeks to achieve positive returns regardless of market conditions over the long-term. It primarily invests in securities of companies that are involved in publicly announced mergers and other corporate reorganizations.
Merger arbitrage is an investment strategy that seeks to capture the "arbitrage spread" represented by the difference between the market price of the securities of the company that is being purchased and the value that is offered for these securities by the acquiring company. The Fund will be offered across several share classes.
Identifying, quantifying and managing risk forms the foundation of Longfellow's strategy. The managers focus their attention on what they consider to be low-to-moderate risk transactions involving publicly listed and traded securities.
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 invests in stocks of small- and mid-cap companies, which may be subject to more erratic market movements than stocks of larger, more established companies. The Fund invests in foreign securities, including depositary receipts, such as ADRs, GDRs and EDRs, which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. The Fund invests in companies that are or expected to be the subject of a publicly announced transaction that may not be completed or may be completed on less favorable terms than originally expected. The Fund invests in preferred stocks which are relegated below bonds for payment should the issuer be liquidated. The fixed dividend may be less attractive in a rising interest rate market. The Fund invests in convertible securities which are subject to the risks of both debt securities and equity securities. The Fund invests in debt securities which can lose their value as interest rates rise and are subject to credit risk which is the risk of deterioration in the financial condition of an issuer and/or general economic conditions that can cause the issuer to not make timely payments of principal and interest also causing the securities to decline in value and an investor can lose principal. When interest rates rise, the price of debt securities generally falls. Longer term securities are generally more volatile. The Fund invests in non-investment grade debt securities which are considered speculative with respect to the issuers' ability to make timely payments of interest and principal, may lack liquidity and has had more frequent and larger price changes than other debt securities. The Fund invests in other investment companies such as closed-end funds and ETFs which are subject to substantially the same risks as those associated with the direct ownership of the securities comprising the portfolios; however, the price movements of the investment companies may not track the underlying securities or market index; the value of their shares may be lower than the value of the portfolio securities, and may be illiquid and shareholders will bear, indirectly, the additional expenses of investing in other investment companies. The Fund is involved in short selling which may result in additional costs associated with covering short positions and a possibility of unlimited loss. The Fund may experience higher portfolio turnover which may lead to increased fund expenses, lower investment returns and higher short-term capital gains taxable to shareholders. 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/literature-center or call Touchstone at 800.638.8194. Please read the prospectus and/or summary prospectus carefully before investing.
About Touchstone Investments
Touchstone Investments is a Distinctively Active mutual fund company committed to providing investors with access to institutional asset managers who act in a sub-advisory capacity. Managed by sub-advisors with high conviction, concentrated portfolios, Touchstone's entire equity fund lineup is composed of high Active Share funds which means their holdings are highly differentiated from their benchmarks. 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 TouchstoneInvestments.com.
About Longfellow Investment Management Co.
Longfellow Investment Management Co. (LIM) provides domestic fixed income and alternative investment strategies for institutions. Founded in 1986, the Boston-based firm utilizes a disciplined strategy focused on bottom-up fundamental analysis, seeking to preserve capital and minimize volatility while earning attractive risk-adjusted returns.
Investment products offered are not FDIC insured, may lose value and have no bank guarantee.
Touchstone Funds are distributed by Touchstone Securities, Inc.*
*A registered broker-dealer and member FINRA/SIPC
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SOURCE Touchstone Investments