Touchstone Climate Transition ETF suite is firm’s first thematic strategy
CINCINNATI, April 28, 2023 /PRNewswire/ — Touchstone Investments, known for its Distinctively Active® mutual funds and exchange traded funds (ETFs), today announced the launch of the Touchstone Climate Transition ETF (HEAT: Cboe BZX), an actively-managed ETF that looks to invest in companies that may benefit from leading the development of solutions for or have the potential to benefit from the ongoing climate transition. The ETF, Touchstone’s fifth active ETF and first thematic ETF offering, will be sub-advised by Lombard Odier Investment Managers (Lombard Odier IM) and begins trading on May 2, 2023.
“Touchstone is focused on providing access to world-class, Distinctly Active institutional asset management strategies through our mutual fund and ETF offerings,” said Blake Moore, president and chief executive officer of Touchstone Investments. “With interest in both thematic and sustainable investing on the rise, the Climate Transition ETF seeks to provide advisers and the investors they serve with an opportunity to better position investment portfolios and meet long-term goals.”
The HEAT strategy, in seeking to achieve its investment objective of capital appreciation, is designed to offer investors a comprehensive framework to invest in three categories of companies across all sectors that may benefit from climate transition impacts: solution providers, transition leaders, and adaptation opportunities. Like Touchstone’s existing ETF offerings, the Climate Transition ETF offers potential for a more tax-efficient, cost competitive and transparent way to access Touchstone’s investment strategies with no investment minimum.
“Our sub-advised model enables us to find best-in-breed asset managers in a variety of asset classes, and we are excited to partner with a manager who truly understands the opportunities being created by the climate transition,” added Matt Barry, vice president of product management & head of capital markets at Touchstone Investments. “We believe Lombard Odier IM’s forward-looking focus on the climate transition, integrated sustainability and investment research and disciplined processes provide the differentiated expertise needed to help our clients navigate this theme.”
Touchstone’s commitment to being Distinctively Active means executing a fully integrated and rigorous process for identifying and collaborating with highly skilled asset managers to sub-advise the firm’s funds. Lombard Odier IM is Touchstone’s fifteenth sub-adviser relationship.
“The transition to a net-zero and climate-resilient world is one of the greatest challenges – and investment opportunities – of our time,” said Paul Udall, Portfolio Manager for HEAT at Lombard Odier IM. “We are thrilled to have been selected by Touchstone as the sub-advisory partner of choice to expand their capability in this space. We have a shared prioritization of actively managed strategies that create opportunities for investors amid the climate transition.”
For more information about the Touchstone Climate Transition ETF and the full suite of Touchstone ETF offerings, please visit: https://www.westernsouthern.com/touchstone/etfs
About Touchstone Investments
Touchstone’s commitment to being Distinctively Active has purposeful intent. Recognizing that not all fund companies are created equal, we actively apply an integrated and rigorous approach for identifying and partnering with highly-skilled asset managers who act in a sub-advisory capacity. Their expertise, disciplined investment processes and employment of active management provide the differentiation required for robust portfolio construction. Touchstone offers a full breadth of investment options across styles and asset classes, including U.S. equity, international equity, income and multi-asset funds. The Touchstone Funds are advised by Touchstone Advisors, Inc., a registered investment adviser, and are distributed nationally through intermediaries including broker-dealers, registered investment advisers, institutions and others by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC. Touchstone, Touchstone Funds and Touchstone Investments are federal service mark registrations and applications owned by IFS Financial Services, Inc. Touchstone Securities, Inc., Touchstone Advisors, Inc., and IFS Financial Services, Inc., are members of Western & Southern Financial Group. For more information, please visit TouchstoneInvestments.com.
About Lombard Odier Investment Managers
At Lombard Odier Investment Managers, we are rethinkers with one goal in mind. To provide our clients with outstanding investment solutions that meet their needs for the long term and evolve to thrive in the challenging world in which we all live.
We are focused investment specialists, seeking out investment opportunities that lie on less trodden paths, where our diverse and talented team can add genuine, persistent, value to our clients. We constantly rethink what we know and do, innovating to create new strategies and develop new ways of investing.
We believe that the next economic revolution has already begun and that sustainability would be a major driver of returns for the foreseeable future and beyond. For those with the skills to adapt to this new reality, sustainability will create new sources of alpha, open up new investment opportunities and lead to enhanced return and reduced portfolio risk.
Our team of sustainability experts combine sophisticated data sources, academic rigour and technical innovation to create leading-edge, science-based tools that provide unique insights that are available to all our investment professionals.
These unique insights are reflected directly in our growing range of dedicated sustainable investment strategies that are aligned to this core belief – that our economic model must move from being Wasteful, Idle, Lopsided and Dirty to become Circular, Lean, Inclusive and Clean. We call this The CLIC™ Economy.
With more than 180 investment professionals, we are a global business with a network of 13 offices across Europe, Asia and North America and have assets under management of 63 billion CHF (as of 31 December 2022). For more information: www.am.lombardodier.com
A Word About Risk
There are risks associated with investing, including possible loss of principal. The Fund invests in equities which are subject to market volatility and loss. The Fund invests in fixed-income securities which can experience reduced liquidity during certain market events, lose their value as interest rates rise and are subject to credit risk which is the risk of deterioration in the financial condition of an issuer. The Fund’s climate transition investment criteria may limit the available investments or may cause the Fund to forgo opportunities to buy certain securities, or forgo opportunities to gain exposure to certain industries, sectors, regions and countries, which may cause the Fund to underperform funds that invest in a broader array of investments. In addition, the Fund may be required to sell a security when it might otherwise be disadvantageous for it to do so.
The Fund invests in fixed-income securities which can experience reduced liquidity during certain market events, lose their value as interest rates rise and are subject to credit risk which is the risk of deterioration in the financial condition of an issuer and/or general economic conditions that can cause the issuer to not make timely payments of principal and interest also causing the securities to decline in value and an investor can lose principal. When interest rates rise, the price of debt securities generally falls.
The Fund may experience higher portfolio turnover which may lead to increased fund expenses, lower investment returns and higher short-term capital gains taxable to shareholders.
Touchstone exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETFs are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange.
Please consider the investment objectives, risks, charges and expenses of the ETF 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 professional or download and/or request one at TouchstoneInvestments.com/resources or call Touchstone at 833.368.7383. Please read the prospectus and/or summary prospectus carefully before investing.
Touchstone ETFs are distributed by Foreside Fund Services, LLC.*
*A registered broker-dealer and member of FINRA.
Not FDIC Insured | No Bank Guarantee | May Lose Value
Prosek Partners for Touchstone Investments
SOURCE Touchstone Investments