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Touchstone Ares Credit Opportunities Fund Q4 2025 Commentary

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⚡ Quantum Brief
The fund underperformed its benchmark, the ICE BofA U.S. High Yield Constrained Index, in Q4 2025, marking a setback for its Class A shares during the quarter. It employs a flexible asset allocation strategy, shifting between core and opportunistic investments based on evolving market conditions to optimize returns. The fund targets securities with attractive relative value compared to their fundamental credit risk, aiming to capitalize on mispriced assets in high-yield markets. Active hedging against credit, interest rate, and currency risks is a key feature, designed to mitigate volatility and preserve capital amid uncertain economic environments. Touchstone’s "Distinctively Active" approach combines rigorous manager selection with adaptive portfolio construction, blending active and passive strategies for institutional and retail investors.
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Touchstone Investments12 FollowersFollow5ShareSavePlay(7min)CommentsSummaryTouchstone Ares Credit Opportunities Fund (Class A Shares, Load Waived) underperformed its benchmark, ICE BofA U.S.

High Yield Constrained Index, for Q4 2025.Employs flexibility by allocating assets among core investments and opportunistic investments as market conditions change.Identifies companies and securities that are believed to offer attractive relative values when compared to their fundamental credit risk.Actively hedges portfolio risks, including credit, interest rate and currency, in an effort to preserve capital. Ratana21/iStock via Getty Images Fund Highlights Employs flexibility by allocating assets among core investments and opportunistic investments as market conditions change Identifies companies and securities that are believed to offer attractive relative values when compared to their fundamental credit This article was written byTouchstone Investments12 FollowersFollowAt Touchstone Investments, we recognize that not all mutual fund companies are created equal. Our commitment to being Distinctively Active means the employment of a fully integrated and rigorous process for identifying and partnering with asset managers who sub-advise our mutual funds and advocating a robust approach to portfolio construction that either uses standalone active strategies or serves as a complement to passive strategies. That is the power of Distinctively Active. Touchstone Funds are offered nationally through intermediaries including broker-dealers, financial planners, registered investment advisors and institutions by Touchstone Securities, Inc. For more information please call 800.638.8194 or visit www.touchstoneinvestments.com Specialties Touchstone Investments helps investors achieve their financial goals by providing access to a distinctive selection of institutional asset managers who are known and respected for proficiency in their specific area of expertise.

Touchstone Securities Inc. is a registered broker-dealer and member FINRA and SIPC Note: This account is not managed or monitored by Touchstone Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Touchstone Investments's official channels.

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