Summary

• Overall, the quarter marked a shift from a disinflationary outlook to one increasingly shaped by stagflation risks and policy uncertainty.
• The Touchstone Ultra Short Duration Fixed Income Fund underperformed its primary benchmark.
• The yield component of return was the primary driver of performance for the quarter with movements in rates and spreads causing negative price performance.
• In first quarter Touchstone Ultra Short Duration Fixed Income Fund continued to invest marginal cash in the corporate sector increasing exposure at quarter-end, making it the highest sector exposure for the Fund.
• Inflation is likely to remain sticky due to services, tariffs, and potential energy shocks, keeping the Fed cautious and reinforcing a higher-for-longer rate environment.

Fund Highlights

• Targets goals through a short duration, low risk approach

• Emphasizes mortgage-backed and asset-backed securities, which are backed by income-producing assets; inefficiencies in these markets make them attractive for active management

• Seeks