fbpx

Touchstone Investments

Fund Complex: Touchstone Investments
Management Company: (1) Touchstone Advisors, Inc.; sub-advisor: EARNEST Partners LLC, (2) Touchstone Advisors, Inc.; sub-advisor:  Rockefeller Capital Management
Funds Affected: (1) Touchstone Impact Bond Fund, (2) Touchstone Sustainability & Impact Equity Fund
Sustainable Investing Strategy: (1) Negative screening (exclusions); ESG Integration, (2) ESG Integration
Summary:
(1) EARNEST believes that entities that are cognizant of environmental, social, and governance (ESG) issues tend to be more successful over time. As a result, EARNEST prefers to invest in government programs and companies that have sustainable operating models and seek to achieve positive aggregate societal impact. This inclusive approach views positive impact characteristics as additive to an investment’s risk/return profile. When assessing an investment’s impact profile, EARNEST considers a wide range of factors, including but not limited to support for economic development, home ownership, and job creation.
The Fund uses its best efforts to avoid investing in companies that are materially involved with mature content, life ethics, alcohol, gambling or tobacco, although it may invest up to 5% of its total assets in certain collective investment vehicles or derivatives that may include prohibited companies.

(2) The Fund’s sub-advisor, Rockefeller & Co. LLC, selects investments for the Fund based on an evaluation of a company’s financial condition and its sustainability and impact practices. Rockefeller applies “bottom-up” security analysis that includes fundamental, sector-based research in seeking to identify businesses that have high or improving returns on capital, barriers to competition, and compelling valuations. Rockefeller’s sustainability and impact evaluation considers environmental, social, and governance criteria such as corporate governance practices, product quality and safety, workplace diversity practices, environmental impact and sustainability, community investment and development, and human rights record.

Notes: The Touchstone Impact Bond Fund is formerly the Touchstone Total Return Bond Fund. On August 1, 2011, the EARNEST Partners Fixed Income Trust (the “Predecessor Fund”), a series of the Nottingham Investment Trust II, was reorganized into the Fund. Prior to the reorganization, the Predecessor Fund had an investment goal and principal investment strategies similar to those of the Fund. Performance information presented prior to August 1, 2011 is that of the Predecessor Fund.

Before the Touchstone Sustainability & Impact Equity Fund changed its name, principal investment strategies and sub-advisor on May 4, 2015, the fund was managed as the Touchstone Large Cap Growth Fund. Consequently, performance prior to May 4, 2015 reflects the prior sub-advisor’s large cap growth strategy.

Ready To Gain A Competitive Edge?

In-depth sustainable investment management analysis, research, opinions and sustainable fund ratings