Touchstone Sands Capital Select Growth Fund Class A (TSNAX)

Overview

The fund is managed with a focus on investing in American companies that display strong potential for growth in terms of revenue or earnings. With the investment expertise of Sands Capital Management, LLC serving as the sub-adviser, the fund predominantly targets large capitalization growth companies, striving for those that not only show exceptional growth prospects but also maintain a substantial market presence, with a preference for companies whose market capitalization exceeds $25 billion. This strict investment criterion ensures a portfolio that is both focused and geared towards high-growth sectors. Given its concentration on a select number of investments, owning typically between 25 and 35 companies, the fund aligns with investors looking for growth opportunities in large-cap markets, although it carries the inherent risks associated with non-diversified investment portfolios. The strategic emphasis on large capitalization companies and avoidance of those with a market capitalization of less than $2 billion underlines its dedication to investing in established, high-growth potential enterprises.

Products and Services

The fund offers specialized investment services focusing on the U.S. large capitalization growth market, characterized by the following:

• Equity Investments in U.S. Companies: The core service involves allocating at least 80% of its assets towards common stocks of U.S. companies. These companies are carefully selected based on the belief in their above-average potential for revenue or earnings growth, distinguishing the fund’s portfolio in the competitive investment landscape.
• Focus on Large Capitalization Growth Companies: A specific focus on large capitalization companies, generally those with a market cap in excess of $25 billion, allows the fund to target investments in some of the most prominent and growth-oriented businesses. This strategic concentration is aimed at leveraging the potential high growth rates of these enterprises for the benefit of fund investors.
• Limited Portfolio Size: With a typically concentrated portfolio owning between 25 and 35 companies, the fund's approach is to focus intensively on a select group of investments. This strategy is based on the belief that a concentrated portfolio of high-growth companies can offer superior returns to investors over the long term, though it also emphasizes the non-diversified nature of the fund, indicating a higher level of individual investment risk compared to diversified funds.
• Investment Size Criteria: The fund adheres to strict investment size criteria, primarily investing in companies with a market capitalization of $2 billion or more. This policy underscores the fund's focus on established companies that possess both the scale and potential for sustained growth, aligning with the fund's overall growth-focused investment philosophy.