Touchstone Names ClearArc Capital ‘Sub-Advisor of the Year’ for Second Consecutive Time

Touchstone Investments •
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For the second year in a row, Touchstone Investments has named ClearArc Capital, Inc. (ClearArc) as its Sub-Advisor of the Year. The 2017 honor recognizes the Cincinnati-based institutional asset manager for its distinctive approach to addressing the income dilemma at a time when credit quality is inconsistent, liquidity is shrinking, interest rates are rising and risk profiles are nearing historic highs.

ClearArc—one of the Touchstone sub-advisors—manages the Touchstone Flexible Income Fund (FFSAX).

Touchstone employs a sub-advisor model that offers investors access to institutional asset managers whose strategies are typically not available to the average investor. The Touchstone Flexible Income Fund seeks high current income in global markets in any capital structure where relative value may be found, with a lower correlation to stocks and bonds. Depending on the market cycle, the manager may invest in a variety of instruments such as preferred stock, high-yield debt, investment-grade debt, asset-backed and mortgage-backed securities and high dividend equities. While seeking income, the manager can shift positions as judged necessary to pursue a consistent risk/reward profile.

"The past few years have presented a highly challenging environment for those seeking income. With the Touchstone Flexible Income Fund, ClearArc has done an outstanding job in addressing this challenge with an innovative, actively managed strategy that plays a critical role in a well-balanced portfolio," said Steven M. Graziano, president of Touchstone Investments. “ClearArc is highly responsive to Touchstone’s sales and marketing needs, regularly taking part in outreach and education efforts to promote the strategy and help advisors address income challenges." 

David L. Withrow, CFA®, president of ClearArc Capital and co-portfolio manager of the fund, commented, "We are proud of our team for again achieving the Touchstone Sub-Advisor of the Year distinction. Our ability to produce long-term returns for investors while providing true portfolio diversification is a hallmark of our focus on quality income."

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 are 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 (Western & Southern).

About ClearArc Capital
ClearArc Capital, Inc. provides investment strategies designed to meet the evolving needs of institutional clients. The firm offers a unique approach that includes research across capital structures in the search for income and return. Through specialized investment teams that are highly adaptive to today’s markets, ClearArc Capital maintains a primary focus on client success. ClearArc Capital, Inc. is an investment adviser registered under the Investment Advisers Act of 1940 and is a wholly owned subsidiary of Fifth Third Bank, with offices in Cincinnati, OH and Grand Rapids, MI. Registration as an investment adviser does not imply any level of skill or training.

The Touchstone Flexible Income 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 value stocks which may not appreciate in value as anticipated or may experience a decline in value. The Fund invests in foreign securities which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. 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 REITs; the risks are similar to those associated with direct ownership of real estate. Shareholders will indirectly bear the additional expenses of investing in REITs. 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 investment grade debt securities which may be downgraded by a Nationally Recognized Statistical Rating Organization (NRSRO) to below investment grade status. 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 U.S. government and agency securities which are neither issued nor guaranteed by the U.S. Treasury and are not guaranteed against price movements due to changing interest rates. The Fund invests in mortgage-backed securities and asset-backed securities which are subject to the risks of prepayment defaults, changing interest rates and at times, the financial condition of the issuer. 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 invests in derivatives such as forward currency exchange contracts, futures contracts, options and swap agreements. Derivatives can be highly volatile, illiquid and difficult to value, subject to counterparty and leverage risks and there is a risk that changes in the value of a derivative held by the Fund will not correlate with the Fund's other investments. Gains or losses from speculative positions in a derivative may be much greater than the original cost and potential losses may be substantial. 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. 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.

Company contact:
Sharon Karp
Touchstone Investments

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 Resources & Tools. 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 investor's shares, when redeemed, may be worth more or less than their original cost. All investing involves risk.

Touchstone Funds are distributed by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC

Investment products offered are not FDIC insured, may lose value and have no bank guarantee.

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