Touchstone Ultra Short Duration Fixed Income Fund Q1 2025 Commentary

Summary

  • The Fund targets low risk and short duration, focusing on high-quality mortgage-backed and asset-backed securities to exploit market inefficiencies.
  • Amid heightened policy uncertainty and volatile markets, the Fund maintained a neutral duration and strong quality bias, avoiding higher-risk strategies.
  • Recent spread widening in high-quality sectors presents selective opportunities, but I remain cautious, prioritizing credit quality over chasing yield.
  • Given persistent uncertainty, a high-quality, ultra-short duration strategy is well-positioned for investors with a 6-12 month horizon.

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Fund Highlights

  • Targets goals through a short duration, low-risk approach
  • Emphasizes mortgage-backed and asset-backed securities, which are backed by income-producing assets; inefficiencies in these markets make them attractive for active management
  • Seeks to keep duration less than a

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At 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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