Touchstone Investments Pairs With Ares for New Credit Fund

Sep 10 2015 | 8:39pm ET

Touchstone Investments has launched a new credit fund in an effort to take advantage of market inefficiencies and relative value opportunities in the global fixed-income market. 

The new fund, named the Touchstone Credit Opportunities Fund, will be sub-advised by an affiliate of alternative asset manager Ares Management. It will seek to generate absolute returns by investing primarily in global debt securities that are believed to offer attractive relative values when compared to their fundamental credit risk. Several share classes of the liquid alternative fund exist, with the A shares trading under the symbol TCOAX.

The subadvisor will incorporate a flexible investment strategy with the capacity to reallocate assets among core investments and opportunistic investments as market conditions change. Broad investment categories for the new fund will include high yield bonds, bank loans, special situations, structured credit and hedges. Management will be led by Ares executives Seth Brufsky, John Leupp and Darryl Schall.

"We are thrilled to include this dynamic portfolio in our fund family and to have the deeply experienced Ares Management team managing it," said Steven Graziano, president of Touchstone Investments. "As market conditions continue to evolve, we see significant opportunities in the credit markets with many securities poised to benefit from capital appreciation and income generation."

Touchstone incorporates a sub-advisor model that offers investors access to institutional asset managers whose strategies are typically not available to retail investors. The Cincinnati-based firm is part of Western & Southern Financial group, which manages approximately $9 billion, while Ares Capital Management had more than $88 billion in AUM across tradable credit, direct lending, private equity and real estate as of June 30.  

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