Touchstone Large Cap Focused Fund Class A (SENCX)

Overview

The fund described focuses on investing in large capitalization equity securities, targeting companies with a market capitalization exceeding $5 billion. It adheres to a strategy of concentrating its portfolio on 25 to 45 companies, aiming to limit cash and equivalents to less than 10% of its net assets. A notable aspect of its strategy includes the potential investment of up to 35% of its assets in foreign issuers, leveraging instruments like ordinary shares or American Depositary Receipts (ADRs) to achieve this international exposure. Despite its focused investment scope, the fund classifies as non-diversified, indicating a potential for higher risk and reward due to its concentrated holdings.

Products and Services

The fund offers a singular investment product with several key characteristics:

• Large Capitalization Equity Securities: The core of the fund's investment approach, focusing on companies with a market cap above $5 billion. This strategy aims to invest in well-established companies that possess the potential for sustainable growth and resilience in various market conditions.
• Concentrated Portfolio: It maintains a portfolio of 25 to 45 companies, allowing for a focused investment approach. This concentration aims to maximize returns by investing in a select group of companies that meet the fund's investment criteria.
• International Exposure: Up to 35% of the fund's assets may be invested in foreign issuers. This is achieved through the purchase of ordinary shares or depositary receipts, such as ADRs, providing investors access to opportunities in international markets and potential diversification benefits.
• Limited Cash Holdings: The fund strives to keep residual cash and equivalents at less than 10% of its net assets. This policy ensures that the majority of the fund's assets are working in the market, aimed at generating returns for investors.