Touchstone Sands Capital Emerging Markets Growth Fund
Sub-Advised by: Sands Capital Management LLC


The Fund seeks long-term capital appreciation by investing primarily in companies located in emerging market countries and opportunistically, in frontier market countries.

Investment Style

  • Seeks to identify leading growth businesses that meet the following criteria:
    • Sustainable, above-average earnings growth
    • Leadership position in a promising business space
    • Significant competitive advantages / distinctive business franchise
    • Clear mission and value-added focus
    • Financial strength
    • Rational valuation relative to the market and business prospects
  • Concentrated, conviction-weighted portfolio typically holds 30-50 companies within global emerging markets
  • Country and sector exposures are primarily a by-product of individual stock selection
The Fund invests in equities which are subject to market volatility and loss. The Fund invests in foreign, emerging and frontier market securities, depositary receipts such as ADRs, GDRs and EDRs which carry the associated risks of economic and political instability, market liquidity, currency volatility and differences in accounting standards. The risks associated with investing in foreign markets are magnified in emerging markets and further magnified in frontier markets due to their smaller economies. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund. 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 growth stocks which may be more volatile than investing in other stocks and may underperform when value investing is in favor. 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 derivatives including options and equity-related securities such as in low-exercise-price options ('LEPOs'), low exercise price warrants ('LEPWs') and participatory notes ('P-notes') which are offshore derivative instruments used to gain exposure to issuers in certain emerging and frontier market countries. The risks of investing in LEPOs, LEPWs and P-notes are similar to the risks of investing in foreign securities and depositary receipts. These securities may lack a liquid market, are subject to correlation, liquidity, counterparty and leverage risks which could result in increased volatility of returns as well as losses. The Fund is non-diversified, which means that it may invest a greater percentage of its assets in the securities of a limited number of issuers and may be subject to greater risks. 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.

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Select Share Class: Y INST

Fund Facts

INST Shares
Portfolio Turnover Rate127%
Total Annual Fund Operating Expense Ratio21.27%
Net Annual Fund Operating Expense Ratio21.26%
Total Net Assets as of 6/30/2018 $282,787,156
Inception Date5/9/2014
Fiscal Year EndMarch 31st
BenchmarkMSCI Emerging Markets Index3
Prospectus Date7/30/2018

1 Annualized as of 3/31/2018

2 Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit certain annual fund operating expenses (excluding Acquired Fund Fees and Expenses “AFFE,” and other expenses, if any) to 1.49% for Class Y Shares and 1.39% for Class INST Shares. These expense limitations will remain in effect until at least 03/30/19.

3 The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

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 or call Touchstone at 800.638.8194. 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.

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.