| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.7% | 2.0% | 13.6% |
| 2025 |
|---|
| 13.6% |
The Touchstone Balanced Fund delivered positive performance in Q4 2025, outperforming its blended benchmark as the Federal Reserve continued its rate cutting cycle with two additional 25 basis point reductions. The Fund maintained a modest 4% overweight to equities despite trimming exposure during the quarter, benefiting from strong security selection across Consumer Discretionary and Financials sectors. Key contributors included overweight positions in Alphabet and Applied Materials, while the Fund exited RTX Corp. Fixed income positioning contributed positively through tactical duration management and overweight allocations to investment grade credit and securitized products. Looking ahead, the investment team remains cautiously optimistic for 2026, citing economic resilience supported by consumer spending and AI infrastructure investment. However, elevated uncertainty persists from trade tensions and geopolitical headwinds. The Fund is positioned with a quality bias across both equity and fixed income allocations, emphasizing businesses with strong returns on capital and pricing power while maintaining flexibility to adjust risk if markets weaken.
The Fund maintains a balanced approach with a modest overweight to equities, emphasizing high-quality businesses with strong fundamentals while remaining disciplined in security selection given elevated market valuations and uncertainty.
As we enter the new year, the investment landscape remains uncertain, though optimism for 2026 continues to build. The U.S. economy has shown resilience despite trade and geopolitical headwinds, supported by strong personal consumption and sustained investment in AI infrastructure. These forces are expected to remain key drivers of growth into 2026, even as elevated uncertainty persists.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 31 2026 | 2025 Q4 | AMAT, GOOGL, RTX | asset allocation, Balanced, Equity, fixed income, Quality, rates | - | The Federal Reserve delivered two additional 25 basis point rate cuts in the final meetings of the year, moving policy closer to neutral amid a weakening employment picture. Expectations for additional rate cuts in 2026, alongside benign long-term inflation expectations, contributed to a steepening yield curve over the quarter. The Fund emphasizes higher-quality businesses with strong returns on capital, pricing power, and meaningful barriers to entry. Fixed income positioning retains a high-quality bias and focuses on selective bottom-up opportunities. |
| Nov 4 2025 | 2025 Q3 | - | credit spreads, equities, Fed policy, fixed income, Multi-Asset | - | The fund balanced equity and fixed income exposure during a period of easing financial conditions and the Feds first rate cut of the year. It maintained an overweight to equities and high-yield credit, focusing on quality issuers and liquidity. The outlook remains cautious but opportunistic, with the portfolio positioned to benefit from moderate growth and tightening spreads. |
| Aug 2 2025 | 2025 Q2 | - | asset allocation, balanced fund, credit, duration, equities | - | The commentary highlights balanced allocation between equities and fixed income amid volatile markets. Tactical shifts in equity exposure and credit positioning are used to manage risk and capture opportunities. Allocation discipline is positioned as key to navigating late-cycle conditions. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position |
RatesFed cut rates by 25bps on December 10 while describing growth as moderate and inflation as still somewhat elevated. Markets took message as cut now, likely pause soon. The opportunity set was less about calling one Fed meeting and more about trading the path via rates and FX. |
Fed Easing Policy Duration Curve | |
| 2025 Q3 |
Multi-Asset |
|
| 2025 Q2 |
Allocation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| AMAT | Top gainers in the Fund this quarter included Applied Materials (+26%). During the quarter, we trimmed the Fund's holding in Applied Materials as it rallied |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| RTX | The top three contributors to this outperformance came from RTX (US Defense) |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
