This report summarizes the performance and strategy of the Touchstone Sands Capital International Growth Fund, which achieved notable outperformance against its benchmark during the second quarter of 2025. The fund's investment philosophy emphasizes long-term capital appreciation through careful selection of global equities.
Detailed Investment Report: Second Quarter 2025
In the financial period ending June 30, 2025, the Touchstone Sands Capital International Growth Fund successfully surpassed the returns of the MSCI ACWI ex-U.S. Index. The fund's primary objective is to foster significant capital growth over an extended horizon. This is achieved by concentrating investments predominantly in the equity securities of companies situated outside the United States, with a particular emphasis on larger, well-established enterprises.
The investment approach is rooted in a meticulous, bottom-up security analysis. This comprehensive research methodology integrates fundamental and sector-specific insights to pinpoint businesses exhibiting strong or escalating returns on invested capital, possessing substantial barriers to competition, and offering attractive valuations. This disciplined selection process aims to identify high-quality international companies capable of sustained growth.
The second quarter of 2025 saw international equity markets experience considerable fluctuations. However, both European and Asian markets demonstrated resilience, staging a robust recovery. This positive momentum was largely fueled by a reduction in global trade tensions, the implementation of accommodating monetary policies by central banks, and strong leadership observed in specific market sectors. These favorable conditions contributed significantly to the fund's positive performance during this volatile period.
This performance underscores the importance of a well-defined investment strategy and disciplined execution in navigating complex global markets. Investors can gain valuable insights into the potential for international growth by understanding the factors driving such fund outperformance, including strategic asset allocation and rigorous fundamental analysis.