Touchstone Fund Beats Benchmark Despite Higher Rates

The second quarter of 2026 was marked by persistent energy-driven inflation and a Federal Reserve leadership transition that reinforced expectations for tighter monetary policy.

Despite higher interest rates and a bear-flattening yield curve, fixed income markets remained resilient.

The Touchstone U.S. Quality Bond Fund (Class A Shares, Load Waived) outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, for the quarter ended June 30, 2026.

The Fund's overweight allocations to spread products, including utility bonds, SF MBS, and multi-family CMOs, contributed positively, benefiting from strong credit fundamentals and easing interest rate volatility.