Skill — Conviction — Opportunity

Active share is a relatively new metric. It measures the proportion of a fund’s portfolio holdings that are different than its relevant benchmark. If a fund is 100% like the benchmark in securities and weights that fund would be deemed to have 0% active share. Conversely, a fund with holdings that differ entirely from the benchmark would be given a score of 100%.

Why is this important? Funds that closely resemble their benchmark will find it difficult, if not impossible, to outperform that benchmark. Finding that fund that has the wherewithal to outperform its benchmark is becoming increasingly difficult. As the following chart illustrates, the percent of assets in U.S. Equity Mutual Funds with high “active share” has declined precipitously over the last 30 years.

At Touchstone, Our Equity Funds Have Concentrated, High-Conviction Portfolios

Touchstone Small Cap Growth Fund

Skill — Conviction — Opportunity

Let Active Share Work For You

Touchstone Securities, Inc. has partnered with Professor Martijn Cremers to provide consulting services. Touchstone and Professor Martijn Cremers are independent of each other.

Active Share measures the percentage of the Fund’s holdings that differ from those of the benchmark. It is calculated by taking the sum of the absolute difference between all of the holdings and weights in the portfolio and those of the benchmark holdings and weights and dividing the result by two. Index performance is not indicative of fund performance. Investing in an index is not possible. Active Share is not a performance measurement. There are no assurances that any strategy or investment approach will meet its objectives. This information should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Past performance is not indicative of future results.

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 TouchstoneInvestments.com/literature-center 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.

Investment products offered are not FDIC insured, may lose value and have no bank guarantee.

Touchstone is a member of Western & Southern Financial Group

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