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Touchstone Mid Cap Fund Q4 2025 Commentary

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⚡ Quantum Brief
The Touchstone Mid Cap Fund outperformed the Russell MidCap Index in Q4 2025, marking its third consecutive quarter of gains amid shifting monetary policy and strong corporate earnings. U.S. equities rose as the Federal Reserve cut interest rates by 25 basis points to 3.5–3.75% in December, citing rising unemployment risks while maintaining a restrictive stance. The fund employs a bottom-up strategy, using a proprietary quantitative model to evaluate investments based on return on capital, earnings-to-value ratios, free cash flow, and return on equity. Its "Distinctively Active" approach combines active and passive strategies, leveraging institutional asset managers with specialized expertise for portfolio construction. The fund is distributed through intermediaries, including broker-dealers and financial advisors, targeting institutional and retail investors seeking diversified mid-cap exposure.
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Touchstone Investments14 FollowersFollow5ShareSavePlay(13min)CommentsSummaryThe Touchstone Mid Cap Fund (Class A Shares, Load Waived) outperformed its benchmark, the Russell MidCap® Index, for the quarter ended December 31, 2025.U.S. equities finished higher for a third consecutive quarter, led by a shift towards a more accommodative monetary policy, resilient consumer spending, and better-than-expected earnings results.Regarding monetary policy, the Fed maintained its restrictive monetary policy but lowered the federal funds rate by 25 basis points to 3.5-3.75% in December due to the rising downside risk of higher unemployment. Guido Mieth/DigitalVision via Getty Images Fund Highlights Utilizes a bottom-up security selection process that screens potential investments against a proprietary quantitative model for return on capital, earnings to value ratio, free cash flow and return on equity Looks at This article was written byTouchstone Investments14 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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