Process Updates from AssetMark
Broker Dealer Instruction: Bulk reassignment request with a letter of instruction
To move multiple accounts or clients to a different Financial Advisor, please submit your instructions to AdvisorRelations@assetmark.com. This request should include a clear Letter of Instruction signed by an authorized signee with a soft copy of a Excel spreadsheet listing the below information. Our associate will reach out to the sender at the Broker Dealer for any requests missing information specified above.
- account numbers
- client names
- current rep name
- current AssetMark rep ID
- new rep name
- new AssetMark rep ID
| Account Number | Client Name | Current Rep Name | AssetMark Rep Code | New Rep Name | AssetMark Rep Code |
| xxxxxxx | Clientname | OldRep | AG4444 | NewRep | AG1234 |
Broker Dealer Change Form
Starting 7/15/2020, AssetMark will no longer be accepting Broker Dealer’s “Change of Dealer” Form and will only accept AssetMark’s form with appropriate signature(s). If you have questions, please call 800-822-4227 or direct them to advisorrelations@assetmark.com
Morningstar to Update Mutual Fund Portfolios in Illuminations
Morningstar Investment Services LLC, a provider of investment management and advisory services, offers Morningstar® Managed PortfoliosSM on the Illuminations platform. Morningstar Managed Portfolios are model portfolios that consist of open-end mutual funds, exchange-traded funds, or equity securities. Initial construction and ongoing monitoring and maintenance of the Morningstar Managed Portfolios is provided by the investment professionals of Morningstar Investment Services’ direct parent company, Morningstar Investment Management LLC, who acts on Morningstar Investment Services’ behalf.
Morningstar Investment Management, has launched Morningstar Funds Trust, an open-end management investment company registered under the Investment Company Act of 1940, as amended. Morningstar Funds Trust consists of a series of nine, open-end, multimanager mutual funds designed to replace third – party mutual funds offered in their managed portfolios. This move to a lower cost structure is aligned with their parent company, Morningstar, Inc.’s, investment principles and reinforces one of their corporate values—Investors First.
To understand what’s changing, it’s useful to consider how Morningstar Investment Management built their managed portfolios in the past. Previously, the portfolio managers selected and allocated assets to third – party mutual funds in some portfolios. Those third – party funds invest in individual securities such as stocks and bonds. With the launch of Morningstar Funds Trust, Morningstar Investment Management’s portfolio managers can allocate to either sub-advisers or other securities. It’s important to keep in mind that while this structure will change the funds that their mutual fund based managed portfolios allocate to, the underlying investment exposures of stocks, bonds, and other securities should be largely unchanged. It is also important to know that the new Morningstar funds will be transaction fee funds at NFS. Normal transaction fees will apply for trades.
These new portfolios have been used for all NEW accounts starting in July of 2019, however the existing accounts were NOT updated at that time. At the end of June, 2020 Morningstar is going to update all the existing accounts. This update will mean these accounts will be rebalanced out of the retail mutual funds and into the Morningstar Funds. If you have questions about the new portfolios, please select the link below or call Morningstar Investment Services at 877-626-3227.
Disclosures:
In the United States, Morningstar® Managed PortfoliosSM are offered by Morningstar Investment Services LLC or Morningstar Investment Management LLC, both registered investment advisers and subsidiaries of Morningstar, Inc., are intended for citizens or legal residents of the United States or its territories and can only be offered by a registered investment adviser or investment adviser representative.
Morningstar Funds Trust is registered with the Securities and Exchange Commission as an open-end management investment company under the Investment Company Act of 1940, as amended. Before investing you should read Morningstar Funds Trust prospectus carefully. Investing in open-end management investment companies (i.e., mutual funds) involves risk. The value of an investment in a fund within Morningstar Funds Trust may go down. Morningstar Funds Trust uses a multimanager approach; therefore, in addition to market fluctuations, a specific Morningstar fund’s performance is derived from the skills of the subadvisors and the allocation of assets among them. Diversification does not eliminate the risk of loss in a declining market nor does it assure a profit. Past performance is not a guarantee of future results. The Funds within the Morningstar Funds Trust are distributed by Foreside Fund Services, LLC and are only available to citizens or legal residents of the United States or its territories through Morningstar Managed Portfolios advisory service.
Please consider the investment objectives, risks, and charges and expenses of the Funds carefully before investing. The prospectus contains this and other important information about the Funds. A prospectus is available at https://connect.rightprospectus.com/Morningstar or by contacting Morningstar Investment Management LLC, 22 W. Washington Street, Chicago, IL 60602, +1 (877) 751-4208. Before investing please read the Morningstar Funds Trust prospectus carefully.
Updates from Touchstone Investments
Fund Reorganization
On May 21, 2020, the Touchstone Board of Trustees (the “Board”) approved a plan to reorganize the Touchstone Anti-Benchmark US Core Equity Fund (“the Fund”) into the Touchstone Dynamic Equity Fund (the “Acquiring Fund”). The reorganization does not require shareholder approval and is expected to be completed on or about September 11, 2020, or as soon as practicable thereafter.
Touchstone Fund Merger
On May 21, 2020, the Touchstone Board of Trustees (the “Board”) approved a plan to reorganize the Touchstone International Growth Opportunities Fund (“the Fund”) into the Touchstone International Small Cap Fund (the “Acquiring Fund”). The reorganization does not require shareholder approval and is expected to be completed on or about September 11, 2020, or as soon as practicable thereafter. If you have questions about this merger, please contact Touchstone at 800-543-0407.
Touchstone Investments Positions Its Funds Sub-Advised by Sands Capital Management for Growth
- Fees Are Modified and New Share Classes Announced
Touchstone Sands Capital Select Growth Fund
Effective June 1, 2020, Fund expense caps are detailed below:
| Class | Symbol | Annual Fund Operating Expense Level* | |
| Total | Net | ||
| A | TSNAX | 1.22% | 1.20% |
| C | TSNCX | 1.99% | 1.95% |
| Y | CFSIX | 0.96% | 0.95% |
| Z | PTSGX | 1.27% | 1.19% |
*Total Annual Fund Operating Expenses have been restated to reflect contractual changes in the Fund’s Investment Advisory Agreement effective June 1, 2020 and include Acquired Fund Fees and Expenses. Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit certain annual fund operating expenses (excluding Acquired Fund Fees and Expenses “AFFE,” and other expenses, if any) to 1.15% for Class A shares, 1.90% for Class C shares, 0.90% for Class Y shares and 1.14% for Class Z shares. These expense limitations will remain in effect until at least 05/31/2021.
Prior to June 1, 2020, Fund expense caps are detailed below:
| Class | Symbol | Annual Fund Operating Expense Level* | |
| Total | Net | ||
| A | TSNAX | 1.45% | 1.45% |
| C | TSNCX | 2.22% | 2.20% |
| Y | CFSIX | 1.19% | 1.19% |
| Z | PTSGX | 1.50% | 1.19% |
* Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit certain annual fund operating expenses (excluding Acquired Fund Fees and Expenses “AFFE,” and other expenses, if any) to 0.25% for Class A Shares, 0.25% for Class C Shares, 0.25% for Class Y Shares and 0.25% for Class Z Shares. These expense limitations will remain in effect until at least 01/30/2021.Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit certain annual fund operating expenses (excluding Acquired Fund Fees and Expenses “AFFE,” and other expenses, if any) to 0.25% for Class A Shares, 0.25% for Class C Shares, 0.25% for Class Y Shares and 0.25% for Class Z Shares. These expense limitations will remain in effect until at least 01/30/2021.
- Institutional and R6 share classes of the Touchstone Sands Capital Select Growth Fund will be launched on or about September 1, 2020. Touchstone Advisors has contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit certain annual fund operating expenses (excluding Acquired Fund Fees and Expenses “AFFE,” and other expenses, if any) in order to limit operating expenses to 0.78% and 0.72% for the new Institutional and R6 share classes, respectively.
- Touchstone Sands Capital Institutional Growth Fund will be merged into the newly created Institutional share class of the Touchstone Sands Capital Select Growth Fund on or about December 11, 2020. The objective of the merger is to create one combined fund with greater economies of scale.
For additional details, please review the prospectus supplements.
TC114937(0620)1