CINCINNATI, July 12, 2016 /PRNewswire/ -- Touchstone Advisors has named Boston-based LMCG Investments, LLC (LMCG), known for its Value team's classic value-driven fundamental philosophy, as sub-advisor to its Touchstone Small Cap Value Fund (TVOAX, TVOCX, TVOYX, TVOIX). LMCG, which assumed the new role on June 30, 2016 also sub-advises the Touchstone Mid Cap Value Fund (TCVAX, TMFCX, TCVYX, TCVIX).
LMCG's Managing Director of Value Equities, R. Todd Vingers, CFA, has more than 25 years experience in the investment industry and serves as the fund's lead portfolio manager. He also co-manages the Touchstone Mid Cap Value Fund.
LMCG believes that leading businesses selling at a discount to fair value have the potential to generate excess returns. Its Small Cap Value strategy focuses on stocks that are temporarily out of favor in the market, emphasizing companies with the cash flow characteristics and the balance sheet strength necessary to buffer a company from prolonged weakness.
"We look for high quality companies – companies that often have barriers to entry in their industries, with good returns on capital and staying power over time - that we believe are temporarily out of favor. In this time of volatility and surprise developments, such as Brexit, we are scouring the landscape carefully, and our team is monitoring for both risks and opportunities that could impact the Fund's portfolio," said Vingers. "A surging dollar, increasing uncertainty around economic growth, valuation distortions, reverberations from the upcoming presidential election, and interest rate moves are all things we watch for."
LMCG replaces DePrince Race & Zollo, Inc. The fund's board approved that change, as well as the move to appoint Russell Implementation Services, Inc. as interim sub-advisor to manage the Fund during the transition, from May 21 to June 30, 2016.
"We've watched LMCG's management style with our Touchstone Mid Cap Value Fund since 2009," said Steven M. Graziano, president of Touchstone Investments. "The firm's active approach, with its rigorous fundamental analysis to identify catalysts with the potential to lead to future price appreciation, is precisely what we need now."
For more information about the Touchstone Small Cap Value Fund or Touchstone Mid Cap Value Fund, investors or their advisors should visit TouchstoneInvestments.com.
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.
A Word About Risk The Funds invest in equities which are subject to market volatility and loss. The Funds invest in stocks of small-cap and mid-cap companies which may be subject to more erratic market movements than stocks of larger, more established companies. The Funds invest in value stocks which may not appreciate in value as anticipated or may experience a decline in value. Current and future portfolio holdings are subject to risk. The advisor engages the sub-advisor to manage the Funds' portfolio; the sub-advisor's judgment may impact the Funds' performance.
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. 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 LMCG Investments, LLC LMCG is a Boston-based investment management firm. The firm offers a broad range of investment strategies to institutional and private clients including corporate and public pension plans, foundations, endowments, family offices, mutual funds and individuals. The firm has been built by attracting talented investment teams that bring extensive experience and specific expertise in their respective market segments and investment strategies. LMCG recognizes that independent thinking drives investment performance and reinforces the autonomy and integrity of its investment teams. LMCG manages equity portfolios across a range of market caps, investment styles and U.S. and international regions, as well as liquid alternatives, structured credit and U.S. fixed income securities. The firm's investment teams, together with its leadership, operational, compliance and client service teams, share the common goal of delivering superior investment performance to its clients. For more information, please visit LMCG.com.