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| Fund Overview | The portfolio is constructed using Touchstone's Quality-At-a-Reasonable-Price ('QARP') investment process. QARP is a fundamental bottom-up process, however, it also incorporates a top-down risk management framework designed to successfully manage the portfolio during varying market conditions and economic cycles. The Touchstone Fund is concentrated, typically holding between 15-20 stocks. No individual stock will ever make up more than 10% of the portfolio at any one time. The Investment Manager may temporarily exceed the exposure limits of the Fund occasionally, particularly during periods of market volatility, to allow for holdings in excess of this 10% limit where the increase in value of the underlying security is due to market movement. The Fund may also hold between 0-50% of the portfolio in cash. The Fund has a high level of associated risk, therefore, the minimum suggested investment time-frame is 5 years. |
| Manager Comments | In June, positive performers included IAG (+6.6%), Resmed (+6.7%) and James Hardie (+6.7%). IAG's performance was principally driven by an upgrade to its FY17 earnings and increased confidence in earnings growth. Resmed rallied with positive momentum reported on its new product launches and rectification of recent product issues. James Hardie performed positively as the market gained confidence that the factors impacting margins for their US Fibre-Cement division should improve going forward. Negative contributors for the month included QBE (-8.5%), Wesfarmers (-6.0%) and Goodman Group (-5.9%). Touchstone maintains a positive outlook for Wesfarmers and Goodman Group, and expects that QBE will benefit from a recovery in the global insurance market and higher interest rates. Touchstone noted that volatility has edged back into markets as fears over tighter monetary policy and high valuations have clouded the outlook for the year ahead. The Manager believes that given the heightened uncertainty, the market remains very vulnerable to external shocks. As such, they remain cautious and have reflected this in their portfolio positioning. |
| More Information |
