MutualFundWire.com: An 18-Year-Old Fund-of-Funds Transforms

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Tuesday, January 9, 2024

An 18-Year-Old Fund-of-Funds Transforms

The team at a Midwestern, multi-manager fund firm recently transformed an 18-year-old, $58-million-AUM (as of September 30) mutual fund into a brand new, actively managed ETF.

Edward Blake Moore, Jr.
Touchstone Investments
CEO

Last month, Blake Moore, president and CEO of Touchstone Investments [profile], and Daniel Allen, president and CEO of Los Angeles Capital Management, confirmed that the Touchstone Dynamic Allocation Fund (fka the Touchstone Dynamic Global Allocation Fund) has been converted into the new Touchstone Dynamic International ETF (TDI on the Nasdaq). TDI is a series of Touchstone ETF Trust, though its predecessor fund was a series of Touchstone Strategic Trust.

TDI's inception date was December 8, 2023, while its predecessor's inception date was December 9, 2005. The new ETF comes with an expense ratio of 65 basis points, which bakes in a 46bps fee waiver promised through October 29, 2024. The predecessor open-end mutual fund came in three share classes: Y shares for 24bps, A shares for 49bps, and C shares for 124bps.

Touchstone Advisors, Inc. serves as administrator and investment advisor to TDI. Los Angeles Capital Management LLC serves as the new fund's subadvisor, succeeding Wilshire Advisors, LLC. The transformed fund's PM team includes: Daniel Arche, senior portfolio manager at LACM; Ed Rackham, co-chief investment officer at LACM; and Hal Reynolds, co-CIO at LACM.

Moore lauds TDI's PM team's "unique investment process, designed to build equity portfolios that adapt to dynamic market conditions."

"This strategy is an important addition to Touchstone's existing suite of active ETFs, and a compelling opportunity for investors seeking concentrated exposure in credible markets outside of the U.S.," Moore states.

"We believe that capturing investor preference and bridging the gap between forward-looking fundamental equity management and backward-looking quantitative approaches is critical to generating returns in today's marketplace," Allen states.

TDI's other service providers include: Bank of New York Mellon as custodian, securities lending agent, sub-administrator, and transfer agent; Ernst & Young LLP as independent accounting firm; Foreside Fund Services, LLC as distributor; and K&L Gates LLP as counsel.

Printed from: MFWire.com/story.asp?s=66901

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