Cincinnati-based Touchstone plans is adding a small-cap growth fund sub-advised by Longwood Investment Advisors and Bjurman, Barry & Associates in response to market demand. Patrick Bannigan, Touchstone's senior vice president and managing director told MFWire.com that the small-cap growth area is now at mature part of the market cycle, after three years of negative returns, and is poised for a big rebound with a market upturn.

"We believe this to be the only fund that combines small-cap and micro-cap allocations in a way that more closely reflects the actual market cap weighting of the Russell 2000 Growth Index and thus gives our investors total weighted exposure to the small-cap universe," he said.

As for possible other additions to its fund family, Bannigan said that such decisions will be driven by investor demand.

The fund, to be distributed through broker-dealers, wire houses and financial planners, will be available to investors October 22. Longwood will manage the 70 percent allocated to small-cap, while Bjurman will oversee the balance earmarked for micro-cap investments. "Both sub-advisors have distinguished, long-term, risk-adjusted performance results," Bannigan said.

The Touchstone Family of Funds are distributed nationally by Touchstone Securities. Touchstone is part of Western & Southern Financial Group, whose assets under management exceed $28 billion.  

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