During the final quarter of 2025, the Touchstone Sands Capital Select Growth Fund (Class A Shares, Load Waived) registered a performance that fell short of its designated benchmark, the Russell 1000® Growth Index. This underperformance was predominantly influenced by specific stock selections across all seven sectors within the Fund's portfolio. The most significant negative impacts stemmed from holdings in the Health Care, Information Technology, and Communication Services sectors. This outcome diverged notably from the general market trend, which observed a considerable rebound in segments characterized by high momentum.

The fund's strategic allocation and specific investment decisions in the aforementioned sectors did not yield the expected returns. This suggests that while the broader market saw gains in certain dynamic areas, the fund's chosen assets within these critical sectors did not keep pace. Such disparities highlight the challenges of active management in a rapidly shifting market environment, where sector-specific dynamics can heavily influence overall fund performance.

Looking ahead, the fund managers may need to reassess their approach to security selection within these underperforming sectors. A detailed analysis of the individual stocks that contributed most to the negative variance could inform future adjustments to the portfolio. This might involve re-evaluating the growth prospects of current holdings or exploring new opportunities that align more closely with prevailing market trends and investment themes.

The discrepancy between the fund's performance and that of its benchmark for the quarter ending December 31, 2025, underscores the importance of ongoing portfolio review and adaptation. The fund's concentrated exposure to certain sectors, particularly Health Care, Information Technology, and Communication Services, proved to be a double-edged sword during this period. While these sectors can offer significant growth potential, they also carry inherent volatility and risk. The market's sharp reversal in high-momentum segments during this quarter further complicated matters, creating an environment where the fund's existing strategy did not fully capitalize on the broader market's recovery.

This period of underperformance serves as a critical juncture for the Touchstone Sands Capital Select Growth Fund to refine its investment strategies. A thorough examination of the factors contributing to the shortfall, especially within the key sectors of Health Care, Information Technology, and Communication Services, is essential. The fund's ability to adjust its holdings and adapt to evolving market conditions will be crucial for improving future performance relative to the Russell 1000® Growth Index.