Touchstone Dividend Equity Fund Q3 2025 Portfolio Review

The Touchstone Dividend Equity Fund (Class A Shares, Load Waived) outperformed its benchmark, the Russell 1000 Value Index, for the quarter ended September 30, 2025. This positive relative return was primarily driven by strong stock selection within Information Technology, Health Care, and Financials, while Communication Services and Materials modestly detracted. During the period, the fund added Sherwin-Williams Co. (SHW) to its holdings and divested Intel Corp. (INTC).

Analysis

The Touchstone Dividend Equity Fund (Class A Shares, Load Waived) demonstrated notable outperformance against its benchmark, the Russell 1000 Value Index, for the quarter ended September 30, 2025. This positive relative return was primarily attributable to strong stock selection within the Information Technology, Health Care, and Financials sectors. Conversely, positions in Communication Services and Materials modestly detracted from the fund's overall performance.

During the reporting period, the fund executed strategic portfolio adjustments, adding Sherwin-Williams Co. (SHW) to its holdings, which suggests a positive conviction in the company's outlook. Concurrently, Intel Corp. (INTC) was divested, indicating a re-evaluation of its prospects or a reallocation of capital within the portfolio. These actions reflect the fund's 'Distinctively Active' management philosophy.

The fund's ability to generate alpha through targeted stock picking, particularly within key sectors, underscores the potential benefits of its active management approach in navigating market conditions. The specific buy and sell decisions provide insight into the fund manager's current assessment of individual company fundamentals and sector attractiveness.

Key Decisions for Investors

• Investors should evaluate the Touchstone Dividend Equity Fund's active management strategy, noting its recent outperformance driven by specific sector selection in IT, Healthcare, and Financials.
• Consider the fund's addition of Sherwin-Williams (SHW) as a potential positive signal and its divestment of Intel (INTC) as a potential negative signal for those individual stocks.
• Monitor the fund's ongoing sector allocations and stock-picking efficacy in subsequent quarters to assess sustained alpha generation and the consistency of its 'Distinctively Active' approach.