UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03651
Touchstone Strategic Trust - June Funds
(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Address of principal executive offices) (Zip code)
Jill T. McGruder
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-638-8194
Date of fiscal year end: June 30
Date of reporting period: December 31, 2019
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
December 31, 2019
(Unaudited)
Semi-Annual Report
Touchstone Strategic Trust |
Touchstone Balanced Fund |
Touchstone International Equity Fund |
Touchstone International Growth Opportunities Fund |
Touchstone International Small Cap Fund |
Touchstone Large Cap Focused Fund |
Touchstone Large Cap Fund |
Touchstone Large Company Growth Fund |
Touchstone Ohio Tax-Free Bond Fund |
Touchstone Small Company Fund |
Touchstone Value Fund |
IMPORTANT NOTE: Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Touchstone Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the shareholder reports from Touchstone Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, annual and semi-annual shareholder reports will be available on the Touchstone Funds’ website ( TouchstoneInvestments.com/Resources), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future annual and semi-annual shareholder reports in paper, free of charge. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive paper copies of shareholder reports through the mail or otherwise change your delivery method, contact your financial intermediary or, if you hold your shares directly through Touchstone Funds, visit TouchstoneInvestments.com/Resources/Edelivery or call Touchstone Funds toll-free at 1.800.543.0407. Your election to receive shareholder reports in paper will apply to all Touchstone Funds that you hold through the financial intermediary, or directly with Touchstone.
Table of Contents
This report identifies the Funds’ investments on December 31, 2019. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.
2
Tabular Presentation of Portfolios of Investments(Unaudited)
December 31, 2019
The tables below provide each Fund’s geographic allocation, credit quality and/or sector allocation. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Balanced Fund | ||||
Credit Quality* | (% of Fixed Income Securities) | |||
AAA/Aaa | 54.0 | % | ||
AA/Aa | 6.0 | |||
A/A | 12.1 | |||
BBB/Baa | 20.7 | |||
Not Rated | 7.2 | |||
100.0 | % |
Sector Allocation** | (% of Net Assets) | |||
Fixed Income Securities | 34.9 | % | ||
Common Stocks | ||||
Information Technology | 15.0 | |||
Health Care | 9.3 | |||
Communication Services | 8.6 | |||
Consumer Discretionary | 7.7 | |||
Financials | 7.5 | |||
Industrials | 6.4 | |||
Consumer Staples | 3.4 | |||
Energy | 1.8 | |||
Materials | 1.6 | |||
Real Estate | 1.1 | |||
Exchange-Traded Fund | 1.5 | |||
Short-Term Investment Fund | 1.1 | |||
Other Assets/Liabilities (Net) | 0.1 | |||
Total | 100.0 | % |
Touchstone International Equity Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
United Kingdom | 17.8 | % | ||
Germany | 13.2 | |||
France | 11.2 | |||
Switzerland | 9.5 | |||
Japan | 6.4 | |||
Canada | 6.1 | |||
China | 5.1 | |||
Hong Kong | 3.4 | |||
Denmark | 3.2 | |||
South Korea | 3.1 | |||
Luxembourg | 2.9 | |||
Norway | 2.4 | |||
Ireland | 2.4 | |||
Mexico | 2.3 | |||
India | 2.3 | |||
Greece | 2.1 | |||
Netherlands | 1.6 | |||
Preferred Stock | 1.1 | |||
Short-Term Investment Fund | 4.0 | |||
Other Assets/Liabilities (Net) | (0.1 | ) | ||
Total | 100.0 | % |
* Credit quality ratings are from Standard & Poor’s (“S&P”) and Moody’s Investors Service (“Moody’s”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
** Sector classifications are based upon the Global Industry Classification Standard (GICS®).
3
Tabular Presentation of Portfolios of Investments(Unaudited) (Continued)
Touchstone International Growth Opportunities Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
China | 29.4 | % | ||
France | 16.1 | |||
Switzerland | 13.4 | |||
Germany | 8.8 | |||
United Kingdom | 5.0 | |||
Japan | 4.8 | |||
Canada | 4.5 | |||
United States | 4.4 | |||
India | 4.3 | |||
Singapore | 3.6 | |||
Australia | 2.0 | |||
Italy | 1.9 | |||
South Korea | 1.1 | |||
Short-Term Investment Funds | 0.8 | |||
Other Assets/Liabilities (Net) | (0.1 | ) | ||
Total | 100.0 | % |
Touchstone International Small Cap Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
Japan | 27.4 | % | ||
United Kingdom | 13.1 | |||
Australia | 7.7 | |||
France | 6.6 | |||
Germany | 4.6 | |||
Sweden | 4.1 | |||
Switzerland | 3.9 | |||
Italy | 3.9 | |||
Netherlands | 3.5 | |||
Canada | 3.5 | |||
Singapore | 2.5 | |||
Ireland | 2.4 | |||
Austria | 2.1 | |||
Denmark | 1.6 | |||
India | 1.5 | |||
Finland | 1.5 | |||
Argentina | 1.5 | |||
Spain | 1.3 | |||
Taiwan | 1.2 | |||
Portugal | 1.1 | |||
Luxembourg | 1.0 | |||
South Korea | 1.0 | |||
China | 1.0 | |||
Exchange-Traded Fund | 1.5 | |||
Short-Term Investment Funds | 3.1 | |||
Other Assets/Liabilities (Net) | (2.6 | ) | ||
Total | 100.0 | % |
4
Tabular Presentation of Portfolios of Investments(Unaudited) (Continued)
Touchstone Large Cap Focused Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 23.9 | % | ||
Communication Services | 14.1 | |||
Health Care | 13.0 | |||
Consumer Discretionary | 12.4 | |||
Financials | 11.2 | |||
Industrials | 7.5 | |||
Consumer Staples | 5.1 | |||
Energy | 3.5 | |||
Real Estate | 2.6 | |||
Materials | 1.0 | |||
Exchange-Traded Funds | 5.6 | |||
Short-Term Investment Funds | 1.5 | |||
Other Assets/Liabilities (Net) | (1.4 | ) | ||
Total | 100.0 | % |
Touchstone Large Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 22.3 | % | ||
Consumer Discretionary | 16.9 | |||
Information Technology | 14.6 | |||
Industrials | 10.9 | |||
Communication Services | 9.8 | |||
Materials | 9.6 | |||
Consumer Staples | 7.0 | |||
Health Care | 4.4 | |||
Energy | 2.8 | |||
Short-Term Investment Fund | 1.8 | |||
Other Assets/Liabilities (Net) | (0.1 | ) | ||
Total | 100.0 | % |
Touchstone Large Company Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 42.5 | % | ||
Communication Services | 20.5 | |||
Consumer Discretionary | 18.7 | |||
Health Care | 16.4 | |||
Consumer Staples | 1.6 | |||
Short-Term Investment Fund | 0.3 | |||
Other Assets/Liabilities (Net) | 0.0 | |||
Total | 100.0 | % |
Touchstone Ohio Tax-Free Bond Fund | ||||
Credit Quality** | (% of Fixed Income Securities) | |||
AAA/Aaa | 8.8 | % | ||
AA/Aa | 74.5 | |||
A/A | 11.1 | |||
BBB/Baa | 4.8 | |||
Not Rated | 0.8 | |||
Total | 100.0 | % |
Portfolio Allocation | (% of Net Assets) | |||
Fixed Rate Revenue Bonds | 71.2 | % | ||
General Obligation Bonds | 21.9 | |||
Pre-refunded/Escrowed to Maturity | 5.2 | |||
Variable Rate Demand Notes | 1.2 | |||
Other Assets/Liabilities (Net) | 0.5 | |||
Total | 100.0 | % |
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
** Credit quality ratings are from Standard & Poor’s (“S&P”) and Moody’s Investors Service (“Moody’s”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
5
Tabular Presentation of Portfolios of Investments(Unaudited) (Continued)
Touchstone Small Company Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 22.6 | % | ||
Health Care | 21.8 | |||
Industrials | 21.6 | |||
Consumer Discretionary | 17.2 | |||
Financials | 9.7 | |||
Communication Services | 4.1 | |||
Consumer Staples | 2.5 | |||
Real Estate | 1.3 | |||
Energy | 1.3 | |||
Short-Term Investment Fund | 3.7 | |||
Other Assets/Liabilities (Net) | (5.8 | ) | ||
Total | 100.0 | % |
Touchstone Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 19.0 | % | ||
Industrials | 15.6 | |||
Energy | 13.0 | |||
Consumer Discretionary | 11.7 | |||
Information Technology | 11.6 | |||
Health Care | 11.2 | |||
Materials | 7.1 | |||
Utilities | 5.0 | |||
Communication Services | 3.2 | |||
Real Estate | 1.1 | |||
Short-Term Investment Fund | 1.6 | |||
Other Assets/Liabilities (Net) | (0.1 | ) | ||
Total | 100.0 | % |
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
6
Touchstone Balanced Fund – December 31, 2019(Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 62.4% | ||||||||
Information Technology — 15.0% | ||||||||
Accenture PLC - Class A | 30,000 | $ | 6,317,100 | |||||
Apple, Inc. | 48,000 | 14,095,200 | ||||||
International Business Machines Corp. | 15,869 | 2,127,081 | ||||||
Microsoft Corp. | 89,192 | 14,065,578 | ||||||
Oracle Corp. | 11,308 | 599,098 | ||||||
salesforce.com, Inc.* | 3,733 | 607,135 | ||||||
Texas Instruments, Inc. | 60,000 | 7,697,400 | ||||||
Visa, Inc. - Class A | 53,000 | 9,958,700 | ||||||
55,467,292 | ||||||||
Health Care — 9.3% | ||||||||
Alcon, Inc. (Switzerland)* | 5,751 | 325,334 | ||||||
AmerisourceBergen Corp. | 23,954 | 2,036,569 | ||||||
Amgen, Inc. | 15,000 | 3,616,050 | ||||||
Becton Dickinson and Co. | 13,000 | 3,535,610 | ||||||
Biogen, Inc.* | 5,000 | 1,483,650 | ||||||
Bristol-Myers Squibb Co. | 45,000 | 2,888,550 | ||||||
CVS Health Corp. | 10,000 | 742,900 | ||||||
Johnson & Johnson | 42,167 | 6,150,900 | ||||||
Merck & Co., Inc. | 31,591 | 2,873,201 | ||||||
Novartis AG (Switzerland) ADR | 28,756 | 2,722,906 | ||||||
Stryker Corp. | 10,047 | 2,109,267 | ||||||
UnitedHealth Group, Inc. | 20,000 | 5,879,600 | ||||||
34,364,537 | ||||||||
Communication Services — 8.6% | ||||||||
Alphabet, Inc. - Class C* | 6,000 | 8,022,120 | ||||||
AT&T, Inc. | 28,740 | 1,123,159 | ||||||
Comcast Corp. - Class A | 120,000 | 5,396,400 | ||||||
Facebook, Inc. - Class A* | 31,011 | 6,365,008 | ||||||
Fox Corp. - Class A | 66,476 | 2,464,265 | ||||||
Netflix, Inc.* | 7,763 | 2,511,874 | ||||||
Verizon Communications, Inc. | 38,782 | 2,381,215 | ||||||
Walt Disney Co. (The) | 24,772 | 3,582,774 | ||||||
31,846,815 | ||||||||
Consumer Discretionary — 7.7% | ||||||||
Alibaba Group Holding Ltd.(China) ADR* | 14,912 | 3,162,835 | ||||||
Amazon.com, Inc.* | 5,666 | 10,469,861 | ||||||
Carnival Corp. | 18,121 | 921,090 | ||||||
Garrett Motion, Inc. (Switzerland)* | 3,500 | 34,965 | ||||||
Home Depot, Inc. (The) | 6,400 | 1,397,632 | ||||||
JD.com, Inc. (China) ADR* | 59,294 | 2,088,928 | ||||||
Marriott International, Inc. - Class A | 12,326 | 1,866,526 | ||||||
McDonald’s Corp. | 20,469 | 4,044,879 | ||||||
TJX Cos., Inc. (The) | 43,017 | 2,626,618 | ||||||
Yum China Holdings, Inc. (China) | 37,118 | 1,782,035 | ||||||
28,395,369 | ||||||||
Financials — 7.5% | ||||||||
American Express Co. | 20,384 | 2,537,604 | ||||||
Berkshire Hathaway, Inc. - Class B* | 38,287 | 8,672,005 | ||||||
CME Group, Inc. | 10,160 | 2,039,315 | ||||||
Goldman Sachs Group, Inc. (The) | 19,828 | 4,559,052 | ||||||
JPMorgan Chase & Co. | 39,000 | 5,436,600 | ||||||
S&P Global, Inc. | 5,996 | 1,637,208 | ||||||
Signature Bank/NewYork NY | 21,629 | 2,954,738 | ||||||
27,836,522 | ||||||||
Industrials — 6.4% | ||||||||
Boeing Co. (The) | 10,646 | 3,468,041 | ||||||
Canadian National Railway Co. (Canada) | 32,000 | 2,894,400 | ||||||
General Dynamics Corp. | 14,000 | 2,468,900 | ||||||
Honeywell International, Inc. | 35,000 | 6,195,000 | ||||||
Hubbell, Inc. | 13,790 | 2,038,438 | ||||||
Resideo Technologies, Inc.* | 5,833 | 69,588 | ||||||
United Technologies Corp. | 22,000 | 3,294,720 | ||||||
Verisk Analytics, Inc. | 20,000 | 2,986,800 | ||||||
23,415,887 | ||||||||
Consumer Staples — 3.4% | ||||||||
Kraft Heinz Co. (The) | 30,000 | 963,900 | ||||||
Monster Beverage Corp.* | 36,008 | 2,288,308 | ||||||
PepsiCo, Inc. | 8,485 | 1,159,645 | ||||||
Philip Morris International, Inc. | 40,000 | 3,403,600 | ||||||
Procter & Gamble Co. (The) | 12,856 | 1,605,714 | ||||||
Unilever NV (United Kingdom) | 51,016 | 2,931,379 | ||||||
12,352,546 | ||||||||
Energy — 1.8% | ||||||||
Chevron Corp. | 20,000 | 2,410,200 | ||||||
Exxon Mobil Corp. | 38,000 | 2,651,640 | ||||||
Schlumberger Ltd. | 37,700 | 1,515,540 | ||||||
6,577,380 | ||||||||
Materials — 1.6% | ||||||||
Corteva, Inc. | 12,820 | 378,959 | ||||||
Dow, Inc. | 12,820 | 701,639 | ||||||
DuPont de Nemours, Inc. | 33,878 | 2,174,968 | ||||||
Linde PLC (United Kingdom) | 12,000 | 2,554,800 | ||||||
5,810,366 | ||||||||
Real Estate — 1.1% | ||||||||
Jones Lang LaSalle, Inc. | 11,184 | 1,947,023 | ||||||
Simon Property Group, Inc. REIT | 14,256 | 2,123,574 | ||||||
4,070,597 | ||||||||
Total Common Stocks | $ | 230,137,311 |
Principal | ||||||||
Amount | ||||||||
U.S. Treasury Obligations — 11.2% | ||||||||
$ | 3,275,000 | U.S. Treasury Bond, 2.250%, 8/15/49 | 3,185,961 | |||||
15,355,000 | U.S. Treasury Note, 1.500%, 10/31/24 | 15,227,242 | ||||||
10,400,000 | U.S. Treasury Note, 1.500%, 11/30/24 | 10,315,906 | ||||||
12,610,000 | U.S. Treasury Note, 1.750%, 11/15/29 | 12,429,716 | ||||||
Total U.S. Treasury Obligations | $ | 41,158,825 |
7
Touchstone Balanced Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 10.8% | ||||||||
Financials — 2.9% | ||||||||
$ | 151,000 | Allstate Corp. (The), Ser B, 5.750%, 8/15/53 | $ | 162,336 | ||||
440,000 | American Express Co., 3.000%, 10/30/24 | 454,926 | ||||||
355,000 | Bank of America Corp., 3.705%, 4/24/28 | 379,586 | ||||||
535,000 | Bank of America Corp. MTN, 4.000%, 1/22/25 | 570,683 | ||||||
390,000 | Bank of Montreal (Canada), 3.803%, 12/15/32 | 406,750 | ||||||
449,000 | Bank of New York Mellon Corp. (The) MTN, 2.950%, 1/29/23 | 461,125 | ||||||
435,000 | Barclays PLC (United Kingdom), 4.610%, 2/15/23 | 454,359 | ||||||
330,000 | Citigroup, Inc., 3.200%, 10/21/26 | 342,404 | ||||||
197,000 | Citigroup, Inc., 4.750%, 5/18/46 | 235,638 | ||||||
466,000 | Corestates Capital III, 144a, (3M LIBOR+0.570%), 2.480%, 2/15/27(A) | 439,205 | ||||||
305,000 | Credit Suisse AG/New York NY(Switzerland) MTN, 3.625%, 9/9/24 | 324,491 | ||||||
345,000 | Fifth Third Bancorp, 2.875%, 7/27/20 | 346,435 | ||||||
440,000 | Goldman Sachs Group, Inc. (The), (3M LIBOR +1.000%), 2.936%, 7/24/23(A) | 444,260 | ||||||
150,000 | Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28 | 159,598 | ||||||
350,000 | Goldman Sachs Group, Inc. (The), 5.250%, 7/27/21 | 367,297 | ||||||
335,000 | HSBC Holdings PLC (United Kingdom), 3.900%, 5/25/26 | 357,352 | ||||||
562,000 | Huntington Bancshares, Inc., 4.000%, 5/15/25 | 607,331 | ||||||
350,000 | JPMorgan Chase & Co., (3M LIBOR+0.730%), 2.664%, 4/23/24(A) | 350,943 | ||||||
270,000 | JPMorgan Chase & Co., 3.250%, 9/23/22 | 279,354 | ||||||
425,000 | JPMorgan Chase & Co., 3.509%, 1/23/29 | 451,739 | ||||||
416,000 | Lloyds Banking Group PLC (United Kingdom), 3.574%, 11/7/28 | 434,672 | ||||||
470,000 | Morgan Stanley, 3.950%, 4/23/27 | 504,266 | ||||||
278,000 | New York Life Global Funding, 144a, 3.000%, 1/10/28 | 288,203 | ||||||
300,000 | Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47 | 316,219 | ||||||
370,000 | PNC Bank NA, 2.700%, 11/1/22 | 377,107 | ||||||
513,000 | Truist Bank, Ser A, (3M LIBOR+0.670%), 2.580%, 5/15/27(A) | 482,220 | ||||||
380,000 | Truist Financial Corp. MTN, 2.850%, 10/26/24 | 392,621 | ||||||
270,000 | Wells Fargo & Co., 4.125%, 8/15/23 | 286,697 | ||||||
63,000 | Wells Fargo & Co. MTN, 4.100%, 6/3/26 | 67,940 | ||||||
10,745,757 | ||||||||
Health Care — 1.1% | ||||||||
114,000 | Abbott Laboratories, 3.750%, 11/30/26 | 124,562 | ||||||
365,000 | AbbVie, Inc., 4.450%, 5/14/46 | 390,947 | ||||||
260,000 | Allergan Funding SCS, 3.800%, 3/15/25 | 273,236 | ||||||
322,000 | Allergan Sales LLC, 144a, 5.000%, 12/15/21 | 336,789 | ||||||
299,000 | Bristol-Myers Squibb Co., 144a, 5.000%, 8/15/45 | 383,555 | ||||||
312,000 | Cigna Corp., 4.375%, 10/15/28 | 345,661 | ||||||
327,000 | Cigna Corp., 144a, 3.300%, 2/25/21 | 331,181 | ||||||
264,000 | CommonSpirit Health, 4.187%, 10/1/49 | 263,953 | ||||||
475,000 | CVS Health Corp., 4.300%, 3/25/28 | 518,910 | ||||||
230,000 | CVS Health Corp., 5.125%, 7/20/45 | 272,853 | ||||||
399,000 | DH Europe Finance II Sarl (Luxembourg), 3.250%, 11/15/39 | 402,444 | ||||||
410,000 | UnitedHealth Group, Inc., 3.500%, 8/15/39 | 430,578 | ||||||
4,074,669 | ||||||||
Information Technology — 1.1% | ||||||||
899,000 | Apple, Inc., 2.750%, 1/13/25 | 928,979 | ||||||
110,000 | Apple, Inc., 4.650%, 2/23/46 | 138,023 | ||||||
400,000 | Broadcom, Inc., 144a, 3.125%, 4/15/21 | 404,856 | ||||||
398,000 | Fiserv, Inc., 3.500%, 7/1/29 | 418,329 | ||||||
430,000 | Global Payments, Inc., 2.650%, 2/15/25 | 431,957 | ||||||
290,000 | Micron Technology, Inc., 4.640%, 2/6/24 | 314,735 | ||||||
210,000 | Microsoft Corp., 3.500%, 2/12/35 | 231,394 | ||||||
430,000 | NXP BV / NXP Funding LLC (Netherlands), 144a, 5.350%, 3/1/26 | 485,652 | ||||||
351,000 | Oracle Corp., 2.650%, 7/15/26 | 359,068 | ||||||
297,000 | Visa, Inc., 4.150%, 12/14/35 | 350,340 | ||||||
4,063,333 | ||||||||
Energy — 0.9% | ||||||||
224,000 | Boardwalk Pipelines LP, 4.450%, 7/15/27 | 232,242 | ||||||
270,000 | Canadian Natural Resources Ltd. (Canada), 6.250%, 3/15/38 | 351,354 | ||||||
280,000 | Cenovus Energy, Inc. (Canada), 5.250%, 6/15/37 | 310,348 | ||||||
350,000 | Cheniere Corpus Christi Holdings LLC, 7.000%, 6/30/24 | 403,336 | ||||||
301,000 | Columbia Pipeline Group, Inc., 4.500%, 6/1/25 | 330,272 | ||||||
400,000 | Diamondback Energy, Inc., 2.875%, 12/1/24 | 404,671 | ||||||
243,000 | Energy Transfer Partners LP, 4.950%, 6/15/28 | 266,283 | ||||||
406,000 | MPLX LP, (3M LIBOR +1.100%),2.985%, 9/9/22(A) | 407,622 | ||||||
89,000 | NGPL PipeCo LLC, 144a, 7.768%, 12/15/37 | 114,915 | ||||||
307,000 | Petroleos Mexicanos (Mexico), 4.500%, 1/23/26 | 305,711 | ||||||
228,000 | Petroleos Mexicanos (Mexico), 144a, 6.840%, 1/23/30 | 243,126 |
8
Touchstone Balanced Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 10.8% (Continued) | ||||||||
Energy — (Continued) | ||||||||
$ | 100,000 | Shell International Finance BV (Netherlands), 1.875%, 5/10/21 | $ | 100,117 | ||||
3,469,997 | ||||||||
Industrials — 0.9% | ||||||||
97,860 | Air Canada 2015-1 Class A Pass Through Trust (Canada), 144a, 3.600%, 3/15/27 | 102,116 | ||||||
418,000 | Burlington Northern Santa Fe LLC, 5.750%, 5/1/40 | 564,395 | ||||||
370,000 | CRH America Finance, Inc., 144a, 4.500%, 4/4/48 | 404,001 | ||||||
377,000 | Eagle Materials, Inc., 4.500%, 8/1/26 | 391,427 | ||||||
166,000 | Embraer Netherlands Finance BV (Netherlands), 5.050%, 6/15/25 | 181,979 | ||||||
167,000 | Embraer Netherlands Finance BV (Netherlands), 5.400%, 2/1/27 | 187,960 | ||||||
280,000 | FedEx Corp., 5.100%, 1/15/44 | 307,321 | ||||||
212,000 | General Electric Co., 4.125%, 10/9/42 | 218,708 | ||||||
210,000 | Norfolk Southern Corp., 4.837%, 10/1/41 | 248,872 | ||||||
396,000 | Republic Services, Inc., 2.500%, 8/15/24 | 400,535 | ||||||
330,000 | Vulcan Materials Co., 4.500%, 4/1/25 | 355,671 | ||||||
3,362,985 | ||||||||
Consumer Staples — 0.9% | ||||||||
514,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., 4.900%, 2/1/46 | 609,667 | ||||||
205,000 | General Mills, Inc., 3.200%, 4/16/21 | 208,701 | ||||||
380,000 | Grupo Bimbo SAB de CV (Mexico), 144a, 4.500%, 1/25/22 | 395,034 | ||||||
475,000 | Imperial Brands Finance PLC (United Kingdom), 144a, 4.250%, 7/21/25 | 501,310 | ||||||
340,000 | Kraft Heinz Foods Co., 6.875%, 1/26/39 | 424,810 | ||||||
167,000 | Kroger Co. (The), 5.000%, 4/15/42 | 186,013 | ||||||
400,000 | Mars, Inc., 144a, 3.875%, 4/1/39 | 442,316 | ||||||
114,000 | Mondelez International, Inc., 3.625%, 5/7/23 | 119,536 | ||||||
351,000 | Reynolds American, Inc., 4.450%, 6/12/25 | 377,987 | ||||||
3,265,374 | ||||||||
Communication Services — 0.8% | ||||||||
552,000 | AT&T, Inc., 3.800%, 3/15/22 | 572,980 | ||||||
18,000 | AT&T, Inc., 4.500%, 5/15/35 | 20,058 | ||||||
155,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45 | 192,158 | ||||||
257,000 | Comcast Corp., 4.000%, 3/1/48 | 285,312 | ||||||
267,000 | Cox Communications, Inc., 144a, 3.350%, 9/15/26 | 275,576 | ||||||
148,000 | Deutsche Telekom International Finance BV (Netherlands), 8.750%, 6/15/30 | 218,034 | ||||||
392,000 | Tencent Holdings Ltd. (China), 144a, 3.975%, 4/11/29 | 423,343 | ||||||
130,000 | Verizon Communications, Inc., 4.672%, 3/15/55 | 160,625 | ||||||
285,000 | Verizon Communications, Inc., 5.012%, 4/15/49 | 365,403 | ||||||
400,000 | Walt Disney Co.(The), 1.750%, 8/30/24 | 396,965 | ||||||
2,910,454 | ||||||||
Real Estate — 0.8% | ||||||||
390,000 | Boston Properties LP REIT, 3.200%, 1/15/25 | 404,855 | ||||||
403,000 | Crown Castle International Corp. REIT, 3.650%, 9/1/27 | 426,501 | ||||||
322,000 | Equinix, Inc. REIT, 2.900%, 11/18/26 | 322,564 | ||||||
288,000 | Mid-America Apartments LP, REIT, 3.750%, 6/15/24 | 303,805 | ||||||
149,000 | Sabra Health Care LP REIT, 5.125%, 8/15/26 | 160,477 | ||||||
418,000 | SBA Tower Trust REIT, 144a, 2.836%, 1/15/25 | 422,261 | ||||||
487,000 | VEREIT Operating Partnership LP REIT, 4.600%, 2/6/24 | 526,198 | ||||||
309,000 | Welltower, Inc. REIT, 4.250%, 4/1/26 | 336,487 | ||||||
2,903,148 | ||||||||
Utilities — 0.6% | ||||||||
258,000 | American Water Capital Corp., 6.593%, 10/15/37 | 364,258 | ||||||
105,000 | DTE Energy Co., 3.700%, 8/1/23 | 109,618 | ||||||
237,000 | Duke Energy Progress LLC, 4.150%, 12/1/44 | 267,945 | ||||||
238,000 | Edison International, 4.125%, 3/15/28 | 244,217 | ||||||
388,000 | Electricite de France SA (France), 144a, 4.500%, 9/21/28 | 431,593 | ||||||
76,000 | Oncor Electric Delivery Co. LLC, 3.800%, 9/30/47 | 83,897 | ||||||
125,000 | PacifiCorp., 5.750%, 4/1/37 | 165,421 | ||||||
277,000 | Virginia Electric & Power Co., 3.300%, 12/1/49 | 279,693 | ||||||
259,000 | WEC Energy Group, Inc., (3M LIBOR+2.113%), 4.022%, 5/15/67(A) | 241,214 | ||||||
2,187,856 | ||||||||
Consumer Discretionary — 0.6% | ||||||||
242,000 | Ashtead Capital, Inc., 144a, 4.375%, 8/15/27 | 250,772 | ||||||
89,000 | AutoNation, Inc., 5.500%, 2/1/20 | 89,227 | ||||||
190,000 | Ford Motor Credit Co. LLC, 4.542%, 8/1/26 | 194,429 | ||||||
180,000 | Ford Motor Credit Co. LLC, 5.584%, 3/18/24 | 194,857 | ||||||
150,000 | General Motors Financial Co., Inc., 3.950%, 4/13/24 | 156,818 |
9
Touchstone Balanced Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 10.8% (Continued) | ||||||||
Consumer Discretionary — (Continued) | ||||||||
$ | 285,000 | Home Depot, Inc. (The), 5.950%, 4/1/41 | $ | 402,715 | ||||
398,000 | Marriott International, Inc., 2.125%, 10/3/22 | 398,765 | ||||||
394,000 | Walmart, Inc., 2.850%, 7/8/24 | 408,793 | ||||||
2,096,376 | ||||||||
Materials — 0.2% | ||||||||
250,000 | Braskem America Finance Co., 144a, 7.125%, 7/22/41 | 286,250 | ||||||
398,000 | Sherwin-Williams Co. (The), 4.500%, 6/1/47 | 452,400 | ||||||
738,650 | ||||||||
Total Corporate Bonds | $ | 39,818,599 | ||||||
U.S. Government Mortgage-Backed Obligations — 5.5% | ||||||||
2,986 | FHLMC, Pool #G08062, 5.000%, 6/1/35 | 3,294 | ||||||
452,464 | FHLMC, Pool #G08637, 4.000%, 4/1/45 | 479,765 | ||||||
186 | FHLMC, Pool #G18091, 6.000%, 12/1/20 | 188 | ||||||
5,362 | FHLMC, Pool #P00020, 6.500%, 10/1/22 | 5,371 | ||||||
2,020,171 | FHLMC, Pool #Q02664, 4.500%, 8/1/41 | 2,195,354 | ||||||
2,922,477 | FHLMC, Pool #Q29056, 4.000%, 10/1/44 | 3,098,657 | ||||||
1,480,286 | FHLMC, Pool #Q29260, 4.000%, 10/1/44 | 1,569,509 | ||||||
31 | FNMA, Pool #687301, 6.000%, 11/1/32 | 34 | ||||||
1,156 | FNMA, Pool #690305, 5.500%, 3/1/33 | 1,244 | ||||||
564,198 | FNMA, Pool #725423, 5.500%, 5/1/34 | 635,025 | ||||||
527,192 | FNMA, Pool #725610, 5.500%, 7/1/34 | 592,506 | ||||||
64,713 | FNMA, Pool #748895, 6.000%, 12/1/33 | 68,232 | ||||||
297,505 | FNMA, Pool #AD9193, 5.000%, 9/1/40 | 328,084 | ||||||
680,742 | FNMA, Pool #AH8925, 4.500%, 3/1/41 | 739,123 | ||||||
829,424 | FNMA, Pool #AL2860, 3.000%, 12/1/42 | 854,591 | ||||||
363,568 | FNMA, Pool #AL5718, 3.500%, 9/1/44 | 384,646 | ||||||
819,463 | FNMA, Pool #AL9409, 3.500%, 11/1/31 | 852,239 | ||||||
542,684 | FNMA, Pool #AR9195, 3.000%, 3/1/43 | 559,026 | ||||||
1,087,021 | FNMA, Pool #AS4707, 3.500%, 4/1/45 | 1,146,975 | ||||||
1,234,140 | FNMA, Pool #AS8703, 2.500%, 2/1/32 | 1,252,250 | ||||||
1,597,525 | FNMA, Pool #AZ7347, 3.000%, 11/1/45 | 1,636,067 | ||||||
1,666,621 | FNMA, Pool #BC1809, 3.500%, 5/1/46 | 1,739,368 | ||||||
855,197 | FNMA, Pool #FM1227, 3.000%, 4/1/32 | 878,043 | ||||||
1,002,911 | GNMA, Pool #5175, 4.500%, 9/20/41 | 1,083,459 | ||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 20,103,050 | ||||||
Asset-Backed Securities — 3.9% | ||||||||
393,440 | Adams Outdoor Advertising LP, Ser 2018-1, Class A, 144a, 4.810%, 11/15/48 | 408,248 | ||||||
450,000 | Apidos CLO XVIII (Cayman Islands), Ser 2018-18A, Class A1, 144a, (3M LIBOR + 1.140%), 3.093%, 10/22/30(A) | 448,049 | ||||||
575,000 | Benefit Street Partners CLO XIX Ltd. (Cayman Islands), Ser 2019-19A, Class B, 144a, 5.266%, 1/15/33(A) | 575,000 | ||||||
465,000 | CIFC Funding Ltd. (Cayman Islands), Ser 2016-1A, Class A1R, 144a, (3M LIBOR + 1.350%), 3.316%, 10/21/31(A) | 465,027 | ||||||
194,040 | Domino’s Pizza Master Issuer LLC, Ser 2017-1A, Class A2II, 144a, 3.082%, 7/25/47 | 194,195 | ||||||
868,438 | Driven Brands Funding LLC, Ser 2019-1A, Class A2, 144a, 4.641%, 4/20/49 | 897,886 | ||||||
836,843 | Elara HGV Timeshare Issuer LLC, Ser 2019-A, Class B, 144a, 2.910%, 1/25/34 | 831,928 | ||||||
758,330 | GLS Auto Receivables Issuer Trust, Ser 2019-3A, Class A, 144a, 2.580%, 7/17/23 | 758,670 | ||||||
677,057 | Hertz Vehicle Financing II LP, Ser 2016-2A, Class B, 144a, 3.940%, 3/25/22 | 685,958 | ||||||
1,350,000 | Hertz Vehicle Financing II LP, Ser 2016-4A, Class A, 144a, 2.650%, 7/25/22 | 1,357,141 | ||||||
700,000 | Jack In The Box Funding LLC, Ser 2019-1A, Class A2I, 144a, 3.982%, 8/25/49 | 705,159 | ||||||
378,000 | Jersey Mike’s Funding, Ser 2019-1A, Class A2, 144a, 4.433%, 2/15/50 | 378,372 | ||||||
830,875 | Jimmy Johns Funding LLC, Ser 2017-1A, Class A2I, 144a, 3.610%, 7/30/47 | 832,229 | ||||||
450,000 | Kabbage Funding LLC, Ser 2019-1, Class A, 144a, 3.825%, 3/15/24 | 454,967 | ||||||
850,000 | Madison Park Funding XXXV Ltd. (Cayman Islands), Ser 2015-18A, Class BR, 144a, (3M LIBOR + 1.600%), 3.566%, 10/21/30(A) | 839,366 | ||||||
465,000 | Madison Park Funding XXXV Ltd. (Cayman Islands), Ser 2019-35A, Class A2A, 144a, (3M LIBOR + 1.650%), 3.616%, 4/20/31(A) | 465,292 | ||||||
575,000 | OHA Loan Funding Ltd. (Cayman Islands), Ser 2015-1A, Class B1R2, 144a, (3M LIBOR + 1.900%), 3.751%, 11/15/32(A) | 574,999 | ||||||
915,000 | STWD Ltd. (Cayman Islands), Ser 2019-FL1, Class A, 144a, (1M LIBOR + 1.080%), 2.820%, 7/15/38(A) | 914,428 | ||||||
699,530 | Towd Point Mortgage Trust, Ser 2019-1, Class A1, 144a, 3.750%, 3/25/58(A)(B) | 726,271 |
10
Touchstone Balanced Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 3.9% (Continued) | ||||||||
$ | 465,000 | Voya CLO Ltd. (Cayman Islands), Ser 2019-2A, Class A, 144a, (3M LIBOR + 1.270%), 3.523%, 7/20/32(A) | $ | 465,201 | ||||
1,323,000 | Wendy’s Funding LLC, Ser 2018-1A, Class A2I, 144a, 3.573%, 3/15/48 | 1,336,825 | ||||||
Total Asset-Backed Securities | $ | 14,315,211 | ||||||
Non-Agency Collateralized Mortgage Obligations — 1.8% | ||||||||
425,391 | Agate Bay Mortgage Trust, Ser 2013-1, Class B3, 144a, 3.605%, 7/25/43(A)(B) | 430,549 | ||||||
881,804 | Agate Bay Mortgage Trust, Ser 2015-4, Class B2, 144a, 3.577%, 6/25/45(A)(B) | 881,379 | ||||||
755,468 | Agate Bay Mortgage Trust, Ser 2015-7, Class B1, 144a, 3.757%, 10/25/45(A)(B) | 775,719 | ||||||
841,600 | CSMC Trust, Ser 2013-IVR3, Class B2, 144a, 3.446%, 5/25/43(A)(B) | 849,614 | ||||||
757,177 | CSMC Trust, Ser 2015-1, Class B3, 144a, 3.935%, 1/25/45(A)(B) | 758,200 | ||||||
857,525 | CSMC Trust, Ser 2015-WIN1, Class B3, 144a, 3.859%, 12/25/44(A)(B) | 870,401 | ||||||
708,089 | CSMC Trust, Ser 2018-RPL9, Class A, 144a, 3.850%, 9/25/57(A)(B) | 737,827 | ||||||
749,427 | JP Morgan Mortgage Trust, Ser 2017-1, Class B2, 144a, 3.539%, 1/25/47(A)(B) | 762,976 | ||||||
694,574 | Sequoia Mortgage Trust, Ser 2015-2, Class A19, 144a, 3.500%, 5/25/45(A)(B) | 697,860 | ||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 6,764,525 |
Shares | ||||||||
Exchange-Traded Fund — 1.5% | ||||||||
iShares JP Morgan USD Emerging Markets Bond ETF | 49,202 | $ | 5,636,581 |
Principal | ||||||||
Amount | ||||||||
Commercial Mortgage-Backed Securities — 1.0% | ||||||||
$ | 825,000 | BANK, Ser 2018-BN14, Class A3, 3.966%, 9/15/60 | 908,142 | |||||
915,000 | BHMS, Ser 2018-ATLS, Class A, 144a, (1M LIBOR + 1.250%), 2.990%, 7/15/35(A) | 914,193 | ||||||
700,000 | GS Mortgage Securities Trust, Ser 2017-FARM, Class B, 144a, 3.541%, 1/10/43(A)(B) | 718,843 | ||||||
825,000 | SG Commercial Mortgage Securities Trust, Ser 2019-787E, Class A, 144a, 4.163%, 2/15/41 | 903,157 | ||||||
295,696 | Wells Fargo Commercial Mortgage Trust, Ser 2018-BXI, Class C, 144a, (1M LIBOR + 1.156%), 2.896%, 12/15/36(A) | 294,229 | ||||||
Total Commercial Mortgage-Backed Securities | $ | 3,738,564 | ||||||
Agency Collateralized Mortgage Obligations — 0.5% | ||||||||
996,137 | FHLMC REMIC, Ser 3859 Class JB, 5.000%, 5/15/41 | 1,085,273 | ||||||
595,933 | GNMA, Ser 2010-169, Class AW, 4.500%, 12/20/40 | 635,144 | ||||||
7,259,252 | GNMA, Ser 2012-147, Class IO, 0.560%, 4/16/54(A)(B)(C) | 237,866 | ||||||
Total Agency Collateralized Mortgage Obligations | $ | 1,958,283 | ||||||
Sovereign Government Obligations — 0.2% | ||||||||
238,000 | Colombia Government International Bond, 5.000%, 6/15/45 | 276,437 | ||||||
417,000 | Province of Ontario Canada, 1.875%, 5/21/20 | 417,010 | ||||||
Total Sovereign Government Obligations | $ | 693,447 |
Shares | ||||||||
Short-Term Investment Fund — 1.1% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 3,890,460 | $ | 3,890,460 |
Total Investment Securities —99.9% | ||||
(Cost $241,999,458) | $ | 368,214,856 | ||
Other Assets in Excess of Liabilities — 0.1% | 528,100 | |||
Net Assets — 100.0% | $ | 368,742,956 |
(A) | Variable rate security - Rate reflected is the rate in effect as of December 31, 2019. |
(B) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(C) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of December 31, 2019. |
11
Touchstone Balanced Fund(Unaudited) (Continued)
Portfolio Abbreviations:
ADR - American Depositary Receipt
CLO - Collateralized Loan Obligation
ETF - Exchange-Traded Fund
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
MTN - Medium Term Note
PLC - Public Limited Company
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
USD - United States Dollar
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2019, these securities were valued at $31,188,431 or 8.5% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 230,137,311 | $ | — | $ | — | $ | 230,137,311 | ||||||||
U.S. Treasury Obligations | — | 41,158,825 | — | 41,158,825 | ||||||||||||
Corporate Bonds | — | 39,818,599 | — | 39,818,599 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 20,103,050 | — | 20,103,050 | ||||||||||||
Asset-Backed Securities | — | 14,315,211 | — | 14,315,211 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 6,764,525 | — | 6,764,525 | ||||||||||||
Exchange-Traded Fund | 5,636,581 | — | — | 5,636,581 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 3,738,564 | — | 3,738,564 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 1,958,283 | — | 1,958,283 | ||||||||||||
Sovereign Government Obligations | — | 693,447 | — | 693,447 | ||||||||||||
Short-Term Investment Fund | 3,890,460 | — | — | 3,890,460 | ||||||||||||
Total | $ | 239,664,352 | $ | 128,550,504 | $ | — | $ | 368,214,856 |
See accompanying Notes to Financial Statements.
12
Touchstone International Equity Fund – December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 95.0% | ||||||||
United Kingdom — 17.8% | ||||||||
Communication Services — 2.2% | ||||||||
ITV PLC | 1,640,000 | $ | 3,281,273 | |||||
Consumer Discretionary — 3.1% | ||||||||
InterContinental Hotels Group PLC | 67,000 | 4,603,889 | ||||||
Consumer Staples — 2.0% | ||||||||
Reckitt Benckiser Group PLC | 37,000 | 3,005,454 | ||||||
Health Care — 2.2% | ||||||||
ConvaTec Group PLC, 144a | 1,240,000 | 3,263,348 | ||||||
Industrials — 2.1% | ||||||||
Bunzl PLC | 111,000 | 3,036,182 | ||||||
Information Technology — 2.2% | ||||||||
Spectris PLC | 85,000 | 3,275,700 | ||||||
Real Estate — 4.0% | ||||||||
Foxtons Group PLC* | 1,750,000 | 2,039,884 | ||||||
Savills PLC | 263,000 | 3,953,997 | ||||||
Total United Kingdom | 26,459,727 | |||||||
Germany — 13.2% | ||||||||
Health Care — 3.2% | ||||||||
Fresenius SE & Co. KGaA | 85,000 | 4,783,246 | ||||||
Industrials — 6.5% | ||||||||
Brenntag AG | 100,000 | 5,425,670 | ||||||
Norma Group SE | 101,000 | 4,305,085 | ||||||
Information Technology — 3.5% | ||||||||
SAP SE | 27,000 | 3,634,153 | ||||||
Siltronic AG | 15,000 | 1,507,093 | ||||||
Total Germany | 19,655,247 | |||||||
France — 11.2% | ||||||||
Communication Services — 5.1% | ||||||||
Eutelsat Communications SA | 147,000 | 2,389,255 | ||||||
JCDecaux SA | 167,000 | 5,147,661 | ||||||
Consumer Discretionary — 2.3% | ||||||||
Cie Generale des Etablissements Michelin SCA | 28,000 | 3,445,655 | ||||||
Energy — 3.8% | ||||||||
CGG SA* | 826,000 | 2,703,885 | ||||||
TOTAL SA | 54,000 | 2,996,488 | ||||||
Total France | 16,682,944 | |||||||
Switzerland — 9.5% | ||||||||
Consumer Staples — 2.5% | ||||||||
Nestle SA | 35,000 | 3,789,285 | ||||||
Health Care — 4.2% | ||||||||
Novartis AG | 28,000 | 2,651,309 | ||||||
Roche Holding AG | 11,000 | 3,575,031 | ||||||
Industrials — 2.8% | ||||||||
Adecco Group AG | 65,000 | 4,109,446 | ||||||
Total Switzerland | 14,125,071 | |||||||
Japan — 6.4% | ||||||||
Communication Services — 1.9% | ||||||||
Nippon Telegraph & Telephone Corp. | 112,000 | 2,830,653 | ||||||
Consumer Discretionary — 2.3% | ||||||||
USS Co. Ltd. | 186,000 | 3,516,014 | ||||||
Industrials — 2.2% | ||||||||
FANUC Corp. | 17,500 | 3,231,636 | ||||||
Total Japan | 9,578,303 | |||||||
Canada — 6.1% | ||||||||
Information Technology — 1.8% | ||||||||
BlackBerry Ltd.* | 419,000 | 2,689,980 | ||||||
Materials — 4.3% | ||||||||
Barrick Gold Corp. | 167,000 | 3,101,952 | ||||||
Pretium Resources, Inc.* | 300,000 | 3,339,000 | ||||||
Total Canada | 9,130,932 | |||||||
China — 5.1% | ||||||||
Communication Services — 2.2% | ||||||||
Tencent Holdings Ltd. | 68,000 | 3,275,979 | ||||||
Consumer Discretionary — 2.9% | ||||||||
Alibaba Group Holding Ltd. ADR* | 20,500 | 4,348,050 | ||||||
Total China | 7,624,029 | |||||||
Hong Kong — 3.4% | ||||||||
Consumer Discretionary — 3.4% | ||||||||
Cafe de Coral Holdings Ltd. | 466,000 | 1,103,833 | ||||||
Galaxy Entertainment Group Ltd. | 540,000 | 3,975,272 | ||||||
Total Hong Kong | 5,079,105 | |||||||
Denmark — 3.2% | ||||||||
Industrials — 3.2% | ||||||||
ISS A/S | 198,000 | 4,750,978 | ||||||
South Korea — 3.1% | ||||||||
Information Technology — 3.1% | ||||||||
Samsung Electronics Co. Ltd. | 97,000 | 4,674,127 | ||||||
Luxembourg — 2.9% | ||||||||
Industrials — 2.9% | ||||||||
Befesa SA, 144a | 100,000 | 4,262,460 |
13
Touchstone International Equity Fund(Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 95.0% (Continued) | ||||||||
Norway — 2.4% | ||||||||
Energy — 2.4% | ||||||||
TGS NOPEC Geophysical Co. ASA | 120,000 | $ | 3,650,861 | |||||
Ireland — 2.4% | ||||||||
Health Care — 2.4% | ||||||||
Medtronic PLC | 32,000 | 3,630,400 | ||||||
Mexico — 2.3% | ||||||||
Consumer Staples — 2.3% | ||||||||
Gruma SAB de CV - Class B | 340,000 | 3,484,786 | ||||||
India — 2.3% | ||||||||
Consumer Discretionary — 0.5% | ||||||||
PC Jeweller Ltd.* | 2,200,000 | 750,510 | ||||||
Financials — 1.8% | ||||||||
Indian Energy Exchange Ltd., 144a* | 1,340,000 | 2,680,820 | ||||||
Total India | 3,431,330 | |||||||
Greece — 2.1% | ||||||||
Consumer Discretionary — 2.1% | ||||||||
OPAP SA | 235,000 | 3,057,479 | ||||||
Netherlands — 1.6% | ||||||||
Energy — 1.6% | ||||||||
Core Laboratories NV | 62,000 | 2,335,540 | ||||||
Total Common Stocks | $ | 141,613,319 | ||||||
Preferred Stock — 1.1% | ||||||||
Germany — 1.1% | ||||||||
Materials — 1.1% | ||||||||
FUCHS PETROLUB SE | 34,000 | $ | 1,689,238 | |||||
Short-Term Investment Fund — 4.0% | ||||||||
Dreyfus Government Cash Management, Institutional Shares,1.51%∞Ω | 5,880,347 | $ | 5,880,347 | |||||
Total Investment Securities —100.1% | ||||||||
(Cost $135,968,118) | $ | 149,182,904 | ||||||
Liabilities in Excess of Other Assets — (0.1%) | (155,874 | ) | ||||||
Net Assets — 100.0% | $ | 149,027,030 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of December 31, 2019. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2019, these securities were valued at $10,206,628 or 6.8% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
United Kingdom | $ | 9,030,063 | $ | 17,429,664 | $ | — | $ | 26,459,727 | ||||||||
Germany | 4,305,085 | 15,350,162 | — | 19,655,247 | ||||||||||||
France | 7,536,916 | 9,146,028 | — | 16,682,944 | ||||||||||||
Switzerland | — | 14,125,071 | — | 14,125,071 | ||||||||||||
Japan | — | 9,578,303 | — | 9,578,303 | ||||||||||||
Canada | 9,130,932 | — | — | 9,130,932 | ||||||||||||
China | 4,348,050 | 3,275,979 | — | 7,624,029 | ||||||||||||
Hong Kong | — | 5,079,105 | — | 5,079,105 | ||||||||||||
Denmark | 4,750,978 | — | — | 4,750,978 | ||||||||||||
South Korea | — | 4,674,127 | — | 4,674,127 | ||||||||||||
Luxembourg | 4,262,460 | — | — | 4,262,460 | ||||||||||||
Norway | 3,650,861 | — | — | 3,650,861 | ||||||||||||
Ireland | 3,630,400 | — | — | 3,630,400 | ||||||||||||
Mexico | 3,484,786 | — | — | 3,484,786 | ||||||||||||
India | 3,431,330 | — | — | 3,431,330 | ||||||||||||
Greece | — | 3,057,479 | — | 3,057,479 | ||||||||||||
Netherlands | 2,335,540 | — | — | 2,335,540 | ||||||||||||
Preferred Stock | — | 1,689,238 | — | 1,689,238 | ||||||||||||
Short-Term Investment Fund | 5,880,347 | — | — | 5,880,347 | ||||||||||||
Total | $ | 65,777,748 | $ | 83,405,156 | $ | — | $ | 149,182,904 |
See accompanying Notes to Financial Statements.
14
Touchstone International Growth Opportunities Fund –December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 99.3% | ||||||||
China — 29.4% | ||||||||
Communication Services — 6.4% | ||||||||
Tencent Holdings Ltd. | 47,125 | $ | 2,270,302 | |||||
Consumer Discretionary — 14.4% | ||||||||
Alibaba Group Holding Ltd. ADR* | 11,685 | 2,478,388 | ||||||
JD.com, Inc. ADR* | 23,390 | 824,030 | ||||||
New Oriental Education & Technology Group, Inc. ADR* | 14,765 | 1,790,256 | ||||||
Consumer Staples — 6.5% | ||||||||
Kweichow Moutai Co. Ltd. - Class A | 5,500 | 935,975 | ||||||
Wuliangye Yibin Co. Ltd. - Class A | 71,228 | 1,363,125 | ||||||
Financials — 2.1% | ||||||||
Ping An Insurance Group Co. of China Ltd. - Class H | 63,300 | 749,059 | ||||||
Total China | 10,411,135 | |||||||
France — 16.1% | ||||||||
Consumer Discretionary — 1.8% | ||||||||
Kering SA | 970 | 639,148 | ||||||
Industrials — 10.5% | ||||||||
Airbus SE | 9,690 | 1,422,155 | ||||||
Safran SA | 9,740 | 1,504,434 | ||||||
Thales SA | 7,460 | 774,197 | ||||||
Information Technology — 3.8% | ||||||||
Capgemini SE | 11,095 | 1,355,289 | ||||||
Total France | 5,695,223 | |||||||
Switzerland — 13.4% | ||||||||
Consumer Staples — 3.2% | ||||||||
Coca-Cola HBC AG* | 33,150 | 1,126,304 | ||||||
Health Care — 10.2% | ||||||||
Alcon, Inc.* | 14,255 | 807,426 | ||||||
Medacta Group SA, 144a* | 7,485 | 559,944 | ||||||
Sonova Holding AG | 6,880 | 1,572,827 | ||||||
Straumann Holding AG | 705 | 691,557 | ||||||
Total Switzerland | 4,758,058 | |||||||
Germany — 8.8% | ||||||||
Communication Services — 2.0% | ||||||||
Stroeer SE & Co. KGaA | 8,810 | 709,786 | ||||||
Information Technology — 6.8% | ||||||||
Netcompany Group A/S, 144a* | 6,135 | 291,930 | ||||||
SAP SE | 10,335 | 1,391,073 | ||||||
Wirecard AG | 6,000 | 723,496 | ||||||
Total Germany | 3,116,285 | |||||||
United Kingdom — 5.0% | ||||||||
Health Care — 3.7% | ||||||||
AstraZeneca PLC | 12,980 | 1,299,194 | ||||||
Information Technology — 1.3% | ||||||||
Endava PLC ADR* | 10,365 | 483,009 | ||||||
Total United Kingdom | 1,782,203 | |||||||
Japan — 4.8% | ||||||||
Consumer Discretionary — 1.9% | ||||||||
ZOZO, Inc. | 34,500 | 659,807 | ||||||
Industrials — 2.9% | ||||||||
Recruit Holdings Co. Ltd. | 27,400 | 1,026,277 | ||||||
Total Japan | 1,686,084 | |||||||
Canada — 4.5% | ||||||||
Consumer Discretionary — 1.7% | ||||||||
Dollarama, Inc. | 17,735 | 609,536 | ||||||
Industrials — 2.8% | ||||||||
Canadian Pacific Railway Ltd. | 3,915 | 998,129 | ||||||
Total Canada | 1,607,665 | |||||||
United States — 4.4% | ||||||||
Communication Services — 2.9% | ||||||||
Alphabet, Inc. - Class A* | 385 | 515,665 | ||||||
Facebook, Inc. - Class A* | 2,520 | 517,230 | ||||||
Information Technology — 1.5% | ||||||||
Microsoft Corp. | 3,270 | 515,679 | ||||||
Total United States | 1,548,574 | |||||||
India — 4.3% | ||||||||
Financials — 4.3% | ||||||||
HDFC Bank Ltd. ADR | 23,900 | 1,514,543 | ||||||
Singapore — 3.6% | ||||||||
Financials — 3.6% | ||||||||
DBS Group Holdings Ltd. | 65,300 | 1,259,065 | ||||||
Australia — 2.0% | ||||||||
Consumer Discretionary — 2.0% | ||||||||
Aristocrat Leisure Ltd. | 29,750 | 702,967 | ||||||
Italy — 1.9% | ||||||||
Information Technology — 1.9% | ||||||||
Nexi SpA, 144a* | 48,808 | 677,779 | ||||||
South Korea — 1.1% | ||||||||
Consumer Discretionary — 1.1% | ||||||||
Fila Korea Ltd. | 8,565 | 391,367 | ||||||
Total Common Stocks | $ | 35,150,948 |
15
Touchstone International Growth Opportunities Fund(Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Short-Term Investment Fund — 0.8% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 285,862 | $ | 285,862 | |||||
Total Investment Securities —100.1% | ||||||||
(Cost $28,154,056) | $ | 35,436,810 | ||||||
Liabilities in Excess of Other Assets — (0.1%) | (33,081 | ) | ||||||
Net Assets — 100.0% | $ | 35,403,729 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of December 31, 2019. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2019, these securities were valued at $1,529,654 or 4.3% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
China | $ | 5,092,674 | $ | 5,318,461 | $ | — | $ | 10,411,135 | ||||||||
France | 2,129,486 | 3,565,737 | — | 5,695,223 | ||||||||||||
Switzerland | 1,686,248 | 3,071,810 | — | 4,758,058 | ||||||||||||
Germany | 1,015,426 | 2,100,859 | — | 3,116,285 | ||||||||||||
United Kingdom | 483,009 | 1,299,194 | — | 1,782,203 | ||||||||||||
Japan | — | 1,686,084 | — | 1,686,084 | ||||||||||||
Canada | 1,607,665 | — | — | 1,607,665 | ||||||||||||
United States | 1,548,574 | — | — | 1,548,574 | ||||||||||||
India | 1,514,543 | — | — | 1,514,543 | ||||||||||||
Singapore | — | 1,259,065 | — | 1,259,065 | ||||||||||||
Australia | — | 702,967 | — | 702,967 | ||||||||||||
Italy | 677,779 | — | — | 677,779 | ||||||||||||
South Korea | — | 391,367 | — | 391,367 | ||||||||||||
Short-Term Investment Fund | 285,862 | — | — | 285,862 | ||||||||||||
Total | $ | 16,041,266 | $ | 19,395,544 | $ | — | $ | 35,436,810 |
See accompanying Notes to Financial Statements.
16
Touchstone International Small Cap Fund – December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% | ||||||||
Japan — 27.4% | ||||||||
Communication Services — 2.0% | ||||||||
Fuji Media Holdings, Inc. | 110,100 | $ | 1,563,239 | |||||
Vision, Inc./Tokyo Japan*† | 85,400 | 1,416,391 | ||||||
Consumer Discretionary — 2.8% | ||||||||
Kyoritsu Maintenance Co. Ltd. | 40,100 | 1,899,080 | ||||||
Marui Group Co. Ltd. | 97,300 | 2,372,423 | ||||||
Consumer Staples — 2.6% | ||||||||
Morinaga & Co. Ltd. | 40,000 | 1,920,886 | ||||||
Morinaga Milk Industry Co. Ltd. | 51,200 | 2,087,618 | ||||||
Financials — 2.5% | ||||||||
Aruhi Corp. | 86,400 | 1,774,071 | ||||||
Zenkoku Hosho Co. Ltd. | 47,400 | 2,012,721 | ||||||
Health Care — 1.4% | ||||||||
Ship Healthcare Holdings, Inc. | 45,200 | 2,085,135 | ||||||
Industrials — 6.6% | ||||||||
Japan Airport Terminal Co. Ltd. | 42,700 | 2,369,215 | ||||||
Kamigumi Co. Ltd. | 80,918 | 1,778,729 | ||||||
Seino Holdings Co. Ltd. | 135,754 | 1,834,113 | ||||||
Sohgo Security Services Co. Ltd. | 34,100 | 1,845,660 | ||||||
TechnoPro Holdings, Inc. | 31,800 | 2,219,356 | ||||||
Information Technology — 7.5% | ||||||||
Azbil Corp. | 71,800 | 2,022,298 | ||||||
Digital Garage, Inc. | 43,200 | 1,805,216 | ||||||
Hosiden Corp. | 158,800 | 2,006,364 | ||||||
Nihon Unisys Ltd. | 71,300 | 2,236,610 | ||||||
NS Solutions Corp. | 39,400 | 1,294,635 | ||||||
Ulvac, Inc. | 50,500 | 1,992,937 | ||||||
Materials — 2.0% | ||||||||
Tokuyama Corp. | 60,200 | 1,566,473 | ||||||
Zeon Corp. | 112,700 | 1,402,502 | ||||||
Total Japan | 41,505,672 | |||||||
United Kingdom — 13.1% | ||||||||
Consumer Discretionary — 2.6% | ||||||||
Redrow PLC | 188,968 | 1,864,787 | ||||||
SSP Group PLC | 233,422 | 2,009,740 | ||||||
Financials — 2.6% | ||||||||
Ashmore Group PLC | 275,809 | 1,891,937 | ||||||
Intermediate Capital Group PLC | 98,194 | 2,094,091 | ||||||
Health Care — 1.6% | ||||||||
Dechra Pharmaceuticals PLC | 64,334 | 2,471,288 | ||||||
Industrials — 4.9% | ||||||||
Aggreko PLC | 206,054 | 2,275,434 | ||||||
Babcock International Group PLC | 218,567 | 1,822,200 | ||||||
HomeServe PLC | 109,302 | 1,830,037 | ||||||
Pagegroup PLC | 213,640 | 1,480,025 | ||||||
Information Technology — 1.4% | ||||||||
Avast PLC, 144a | 343,322 | 2,059,173 | ||||||
Total United Kingdom | 19,798,712 | |||||||
Australia — 7.7% | ||||||||
Energy — 2.1% | ||||||||
Beach Energy Ltd. | 927,836 | 1,641,112 | ||||||
Worley Ltd. | 145,476 | 1,571,513 | ||||||
Financials — 1.7% | ||||||||
Challenger Ltd. | 442,002 | 2,515,225 | ||||||
Health Care — 1.4% | ||||||||
Ansell Ltd. | 107,582 | 2,190,682 | ||||||
Industrials — 1.3% | ||||||||
ALS Ltd. | 294,572 | 1,896,574 | ||||||
Real Estate — 1.2% | ||||||||
Charter Hall Group REIT | 238,973 | 1,861,192 | ||||||
Total Australia | 11,676,298 | |||||||
France — 6.6% | ||||||||
Health Care — 1.7% | ||||||||
Korian SA | 54,135 | 2,545,518 | ||||||
Industrials — 2.3% | ||||||||
Nexans SA | 37,970 | 1,858,018 | ||||||
SPIE SA | 84,344 | 1,723,833 | ||||||
Information Technology — 2.6% | ||||||||
Alten SA | 17,598 | 2,220,714 | ||||||
SOITEC* | 16,049 | 1,694,390 | ||||||
Total France | 10,042,473 | |||||||
Germany — 4.6% | ||||||||
Communication Services — 1.2% | ||||||||
Stroeer SE & Co. KGaA | 23,320 | 1,878,799 | ||||||
Materials — 1.2% | ||||||||
Salzgitter AG | 80,523 | 1,777,418 | ||||||
Real Estate — 2.2% | ||||||||
Alstria Office AG REIT | 100,815 | 1,894,160 | ||||||
TAG Immobilien AG | 55,376 | 1,376,474 | ||||||
Total Germany | 6,926,851 | |||||||
Sweden — 4.1% | ||||||||
Industrials — 2.9% | ||||||||
Loomis AB | 58,319 | 2,414,613 | ||||||
Saab AB | 61,370 | 2,056,074 | ||||||
Materials — 1.2% | ||||||||
Hexpol AB | 178,501 | 1,754,223 | ||||||
Total Sweden | 6,224,910 |
17
Touchstone International Small Cap Fund(Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% (Continued) | ||||||||
Switzerland — 3.9% | ||||||||
Health Care — 0.8% | ||||||||
Siegfried Holding AG | 2,534 | $ | 1,226,364 | |||||
Industrials — 3.1% | ||||||||
Sulzer AG | 20,645 | 2,301,366 | ||||||
Wizz Air Holdings PLC, 144a* | 47,240 | 2,441,863 | ||||||
Total Switzerland | 5,969,593 | |||||||
Italy — 3.9% | ||||||||
Consumer Discretionary — 1.2% | ||||||||
Freni Brembo SpA | 144,413 | 1,791,588 | ||||||
Materials — 1.7% | ||||||||
Buzzi Unicem SpA | 102,800 | 2,591,271 | ||||||
Utilities — 1.0% | ||||||||
Iren SpA | 484,199 | 1,500,114 | ||||||
Total Italy | 5,882,973 | |||||||
Netherlands — 3.5% | ||||||||
Financials — 1.2% | ||||||||
ASR Nederland NV | 48,819 | 1,829,517 | ||||||
Health Care — 1.3% | ||||||||
Pharming Group NV* | 1,079,921 | 1,898,787 | ||||||
Industrials — 1.0% | ||||||||
TKH Group NV | 28,181 | 1,583,856 | ||||||
Total Netherlands | 5,312,160 | |||||||
Canada — 3.5% | ||||||||
Industrials — 1.0% | ||||||||
Boyd Group Services, Inc. | 10,083 | 1,568,493 | ||||||
Materials — 0.9% | ||||||||
Interfor Corp.* | 117,890 | 1,331,829 | ||||||
Utilities — 1.6% | ||||||||
Capital Power Corp.† | 89,115 | 2,360,067 | ||||||
Total Canada | 5,260,389 | |||||||
Singapore — 2.5% | ||||||||
Industrials — 1.3% | ||||||||
ComfortDelGro Corp. Ltd. | 1,118,200 | 1,978,553 | ||||||
Real Estate — 1.2% | ||||||||
Mapletree Commercial Trust REIT | 1,006,330 | 1,788,266 | ||||||
Total Singapore | 3,766,819 | |||||||
Ireland — 2.4% | ||||||||
Consumer Staples — 1.7% | ||||||||
Greencore Group PLC | 716,685 | 2,538,846 | ||||||
Health Care — 0.7% | ||||||||
UDG Healthcare PLC | 104,481 | 1,115,468 | ||||||
Total Ireland | 3,654,314 | |||||||
Austria — 2.1% | ||||||||
Industrials — 1.2% | ||||||||
ANDRITZ AG | 43,091 | 1,856,071 | ||||||
Real Estate — 0.9% | ||||||||
IMMOFINANZ AG | 51,580 | 1,382,789 | ||||||
Total Austria | 3,238,860 | |||||||
Denmark — 1.6% | ||||||||
Consumer Staples — 1.6% | ||||||||
Royal Unibrew A/S | 26,611 | 2,436,667 | ||||||
India — 1.5% | ||||||||
Information Technology — 1.5% | ||||||||
WNS Holdings Ltd. ADR* | 33,948 | 2,245,660 | ||||||
Finland — 1.5% | ||||||||
Materials — 1.5% | ||||||||
Huhtamaki OYJ | 48,322 | 2,242,911 | ||||||
Argentina — 1.5% | ||||||||
Information Technology — 1.5% | ||||||||
Globant SA* | 20,944 | 2,221,111 | ||||||
Spain — 1.3% | ||||||||
Health Care — 1.3% | ||||||||
Almirall SA | 116,677 | 1,916,033 | ||||||
Taiwan — 1.2% | ||||||||
Information Technology — 1.2% | ||||||||
Chipbond Technology Corp. | 772,000 | 1,734,891 | ||||||
Portugal — 1.1% | ||||||||
Financials — 1.1% | ||||||||
Banco Comercial Portugues SA | 7,268,368 | 1,658,656 | ||||||
Luxembourg — 1.0% | ||||||||
Real Estate — 1.0% | ||||||||
Grand City Properties SA | 64,425 | 1,545,037 | ||||||
South Korea — 1.0% | ||||||||
Industrials — 1.0% | ||||||||
Samsung Engineering Co. Ltd.* | 92,827 | 1,534,080 |
18
Touchstone International Small Cap Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% (Continued) | ||||||||
China — 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Xtep International Holdings Ltd. | 2,812,500 | $ | 1,494,459 | |||||
Total Common Stocks | $ | 148,289,529 | ||||||
Exchange-Traded Fund — 1.5% | ||||||||
United States — 1.5% | ||||||||
iShares MSCI EAFE Small-Cap ETF | 36,678 | $ | 2,284,306 | |||||
Short-Term Investment Funds — 3.1% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 811,001 | 811,001 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.50%**∞Ω | 3,881,514 | 3,881,514 | ||||||
Total Short-Term Investment Funds | $ | 4,692,515 | ||||||
Total Investment Securities —102.6% | ||||||||
(Cost $131,156,047) | $ | 155,266,350 | ||||||
Liabilities in Excess of Other Assets — (2.6%) | (3,964,538 | ) | ||||||
Net Assets — 100.0% | $ | 151,301,812 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of December 31, 2019 was $3,697,869. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of December 31, 2019. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
ETF - Exchange-Traded Fund
PLC - Public Limited Company
REIT- Real Estate Investment Trust
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2019, these securities were valued at $4,501,036 or 3.0% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
Japan | $ | — | $ | 41,505,672 | $ | — | $ | 41,505,672 | ||||||||
United Kingdom | 15,631,341 | 4,167,371 | — | 19,798,712 | ||||||||||||
Australia | — | 11,676,298 | — | 11,676,298 | ||||||||||||
France | 4,766,232 | 5,276,241 | — | 10,042,473 | ||||||||||||
Germany | 3,270,634 | 3,656,217 | — | 6,926,851 | ||||||||||||
Sweden | 4,470,687 | 1,754,223 | — | 6,224,910 | ||||||||||||
Switzerland | — | 5,969,593 | — | 5,969,593 | ||||||||||||
Italy | 3,291,702 | 2,591,271 | — | 5,882,973 | ||||||||||||
Netherlands | 1,898,787 | 3,413,373 | — | 5,312,160 | ||||||||||||
Canada | 5,260,389 | — | — | 5,260,389 | ||||||||||||
Singapore | 1,788,266 | 1,978,553 | — | 3,766,819 | ||||||||||||
Ireland | 1,115,468 | 2,538,846 | — | 3,654,314 | ||||||||||||
Austria | 3,238,860 | — | — | 3,238,860 | ||||||||||||
Denmark | 2,436,667 | — | — | 2,436,667 | ||||||||||||
India | 2,245,660 | — | — | 2,245,660 | ||||||||||||
Finland | 2,242,911 | — | — | 2,242,911 | ||||||||||||
Argentina | 2,221,111 | — | — | 2,221,111 | ||||||||||||
Spain | 1,916,033 | — | — | 1,916,033 | ||||||||||||
Taiwan | — | 1,734,891 | — | 1,734,891 | ||||||||||||
Portugal | — | 1,658,656 | — | 1,658,656 | ||||||||||||
Luxembourg | 1,545,037 | — | — | 1,545,037 | ||||||||||||
South Korea | — | 1,534,080 | — | 1,534,080 | ||||||||||||
China | — | 1,494,459 | — | 1,494,459 | ||||||||||||
Exchange-Traded Fund | 2,284,306 | — | — | 2,284,306 | ||||||||||||
Short-Term Investment Funds | 4,692,515 | — | — | 4,692,515 | ||||||||||||
Total | $ | 64,316,606 | $ | 90,949,744 | $ | — | $ | 155,266,350 |
See accompanying Notes to Financial Statements.
19
Touchstone Large Cap Focused Fund – December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 94.3% | ||||||||
Information Technology — 23.9% | ||||||||
Accenture PLC - Class A | 72,715 | $ | 15,311,598 | |||||
Apple, Inc. | 340,315 | 99,933,500 | ||||||
Cisco Systems, Inc. | 584,365 | 28,026,145 | ||||||
International Business Machines Corp. | 126,938 | 17,014,770 | ||||||
Microsoft Corp. | 658,018 | 103,769,439 | ||||||
Oracle Corp. | 413,559 | 21,910,356 | ||||||
salesforce.com, Inc.* | 177,898 | 28,933,331 | ||||||
Texas Instruments, Inc. | 164,701 | 21,129,491 | ||||||
Visa, Inc. - Class A | 475,920 | 89,425,368 | ||||||
425,453,998 | ||||||||
Communication Services — 14.1% | ||||||||
Alphabet, Inc. - Class C* | 57,000 | 76,210,140 | ||||||
AT&T, Inc. | 140,021 | 5,472,021 | ||||||
Baidu, Inc. (China) ADR* | 35,866 | 4,533,462 | ||||||
Comcast Corp. - Class A | 947,256 | 42,598,102 | ||||||
Facebook, Inc. - Class A* | 270,892 | 55,600,583 | ||||||
Fox Corp. - Class A | 543,444 | 20,145,469 | ||||||
Netflix, Inc.* | 64,980 | 21,025,579 | ||||||
Walt Disney Co. (The) | 173,087 | 25,033,573 | ||||||
250,618,929 | ||||||||
Health Care — 13.0% | ||||||||
AmerisourceBergen Corp. | 146,959 | 12,494,454 | ||||||
Amgen, Inc. | 58,315 | 14,057,997 | ||||||
Becton Dickinson and Co. | 82,860 | 22,535,434 | ||||||
Biogen, Inc.* | 73,557 | 21,826,569 | ||||||
Bristol-Myers Squibb Co. | 371,691 | 23,858,845 | ||||||
Johnson & Johnson | 331,738 | 48,390,622 | ||||||
Merck & Co., Inc. | 249,063 | 22,652,280 | ||||||
Novartis AG (Switzerland) ADR | 191,666 | 18,148,854 | ||||||
Stryker Corp. | 24,318 | 5,105,321 | ||||||
UnitedHealth Group, Inc. | 140,161 | 41,204,531 | ||||||
230,274,907 | ||||||||
Consumer Discretionary — 12.4% | ||||||||
Alibaba Group Holding Ltd. (China) ADR* | 119,331 | 25,310,105 | ||||||
Amazon.com, Inc.* | 46,083 | 85,154,011 | ||||||
Booking Holdings, Inc.* | 4,805 | 9,868,173 | ||||||
Carnival Corp. | 231,991 | 11,792,103 | ||||||
Garrett Motion, Inc. (Switzerland)* | 23,988 | 239,640 | ||||||
Home Depot, Inc. (The) | 55,322 | 12,081,218 | ||||||
JD.com, Inc. (China) ADR* | 466,788 | 16,444,941 | ||||||
Marriott International, Inc. - Class A | 50,834 | 7,697,793 | ||||||
McDonald’s Corp. | 103,209 | 20,395,130 | ||||||
TJX Cos, Inc. (The) | 236,793 | 14,458,581 | ||||||
Yum China Holdings, Inc. (China) | 362,791 | 17,417,596 | ||||||
220,859,291 | ||||||||
Financials — 11.2% | ||||||||
American Express Co. | 47,346 | 5,894,104 | ||||||
Berkshire Hathaway, Inc. - Class B* | 306,243 | 69,364,039 | ||||||
CME Group, Inc. | 74,811 | 15,016,064 | ||||||
Goldman Sachs Group, Inc. (The) | 132,225 | 30,402,494 | ||||||
JPMorgan Chase & Co. | 325,000 | 45,305,000 | ||||||
S&P Global, Inc. | 21,909 | 5,982,252 | ||||||
Signature Bank/NewYork NY | 193,112 | 26,381,030 | ||||||
198,344,983 | ||||||||
Industrials — 7.5% | ||||||||
Boeing Co. (The) | 34,536 | 11,250,447 | ||||||
Deere & Co. | 123,002 | 21,311,327 | ||||||
FedEx Corp. | 19,742 | 2,985,188 | ||||||
Honeywell International, Inc. | 107,698 | 19,062,546 | ||||||
Hubbell, Inc. | 110,731 | 16,368,256 | ||||||
Resideo Technologies, Inc.* | 39,981 | 476,973 | ||||||
Union Pacific Corp. | 120,621 | 21,807,071 | ||||||
United Technologies Corp. | 208,281 | 31,192,163 | ||||||
Verisk Analytics, Inc. | 57,892 | 8,645,591 | ||||||
133,099,562 | ||||||||
Consumer Staples — 5.1% | ||||||||
Kraft Heinz Co. (The) | 183,288 | 5,889,043 | ||||||
Monster Beverage Corp.* | 301,779 | 19,178,055 | ||||||
PepsiCo, Inc. | 66,079 | 9,031,017 | ||||||
Philip Morris International, Inc. | 275,000 | 23,399,750 | ||||||
Procter & Gamble Co. (The) | 102,476 | 12,799,252 | ||||||
Unilever NV (United Kingdom) | 370,454 | 21,286,287 | ||||||
91,583,404 | ||||||||
Energy — 3.5% | ||||||||
Chevron Corp. | 172,149 | 20,745,676 | ||||||
Exxon Mobil Corp. | 455,000 | 31,749,900 | ||||||
Schlumberger Ltd. | 248,127 | 9,974,705 | ||||||
62,470,281 | ||||||||
Real Estate — 2.6% | ||||||||
Jones Lang LaSalle, Inc. | 162,650 | 28,315,738 | ||||||
Simon Property Group, Inc. REIT | 119,436 | 17,791,187 | ||||||
46,106,925 | ||||||||
Materials — 1.0% | ||||||||
DuPont de Nemours, Inc. | 264,690 | 16,993,098 | ||||||
Total Common Stocks | $ | 1,675,805,378 | ||||||
Exchange-Traded Funds — 5.6% | ||||||||
SPDR S&P 500 ETF Trust | 230,000 | 74,027,800 | ||||||
Utilities Select Sector SPDR Fund† | 385,000 | 24,878,700 | ||||||
Total Exchange-Traded Funds | $ | 98,906,500 | ||||||
Short-Term Investment Funds — 1.5% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 2,301,054 | 2,301,054 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 1.50%**∞Ω | 24,044,775 | 24,044,775 | ||||||
Total Short-Term Investment Funds | $ | 26,345,829 |
20
Touchstone Large Cap Focused Fund (Unaudited) (Continued)
Market | ||||
Value | ||||
Total Investment Securities — 101.4% | ||||
(Cost $965,034,485) | $ | 1,801,057,707 | ||
Liabilities in Excess of Other Assets — (1.4%) | (24,869,175 | ) | ||
Net Assets — 100.0% | $ | 1,776,188,532 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of December 31, 2019 was $23,631,534. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of December 31, 2019. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
ETF - Exchange-Traded Fund
PLC - Public Limited Company
REIT - Real Estate Investment Trust
SPDR - Standard & Poor’s Depositary Receipt
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 1,675,805,378 | $ | — | $ | — | $ | 1,675,805,378 | ||||||||
Exchange-Traded Funds | 98,906,500 | — | — | 98,906,500 | ||||||||||||
Short-Term Investment Funds | 26,345,829 | — | — | 26,345,829 | ||||||||||||
Total | $ | 1,801,057,707 | $ | — | $ | — | $ | 1,801,057,707 |
See accompanying Notes to Financial Statements.
21
Touchstone Large Cap Fund– December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.3% | ||||||||
Financials — 22.3% | ||||||||
Alleghany Corp.* | 13,919 | $ | 11,129,215 | |||||
Berkshire Hathaway, Inc. - Class B* | 97,064 | 21,984,996 | ||||||
BlackRock, Inc. | 22,348 | 11,234,340 | ||||||
Charles Schwab Corp. (The) | 164,089 | 7,804,073 | ||||||
Progressive Corp. (The) | 121,825 | 8,818,912 | ||||||
Wells Fargo & Co. | 160,732 | 8,647,382 | ||||||
69,618,918 | ||||||||
Consumer Discretionary — 16.9% | ||||||||
CarMax, Inc.* | 120,321 | 10,548,542 | ||||||
Carnival Corp. | 187,655 | 9,538,504 | ||||||
Dollar Tree, Inc.* | 72,429 | 6,811,947 | ||||||
Home Depot, Inc. (The) | 46,508 | 10,156,417 | ||||||
Lowe’s Cos., Inc. | 39,853 | 4,772,795 | ||||||
O’Reilly Automotive, Inc.* | 24,798 | 10,867,971 | ||||||
52,696,176 | ||||||||
Information Technology — 14.6% | ||||||||
Apple, Inc. | 80,685 | 23,693,150 | ||||||
Cisco Systems, Inc. | 182,579 | 8,756,489 | ||||||
Visa, Inc. - Class A | 69,003 | 12,965,664 | ||||||
45,415,303 | ||||||||
Industrials — 10.9% | ||||||||
FedEx Corp. | 55,229 | 8,351,177 | ||||||
General Dynamics Corp. | 40,118 | 7,074,809 | ||||||
Norfolk Southern Corp. | 55,223 | 10,720,441 | ||||||
Southwest Airlines Co. | 144,849 | 7,818,949 | ||||||
33,965,376 | ||||||||
Communication Services — 9.8% | ||||||||
Alphabet, Inc. - Class C* | 12,606 | 16,854,474 | ||||||
Fox Corp. - Class A | 232,258 | 8,609,804 | ||||||
Verizon Communications, Inc. | 81,954 | 5,031,976 | ||||||
30,496,254 | ||||||||
Materials — 9.6% | ||||||||
Air Products & Chemicals, Inc. | 40,260 | 9,460,697 | ||||||
Martin Marietta Materials, Inc. | 40,458 | 11,313,675 | ||||||
NewMarket Corp. | 18,902 | 9,196,201 | ||||||
29,970,573 | ||||||||
Consumer Staples — 7.0% | ||||||||
Altria Group, Inc. | 212,893 | 10,625,490 | ||||||
Nestle SA (Switzerland) ADR | 104,256 | 11,286,755 | ||||||
21,912,245 | ||||||||
Health Care — 4.4% | ||||||||
Bristol-Myers Squibb Co. | 93,591 | 6,007,606 | ||||||
Pfizer, Inc. | 197,815 | 7,750,392 | ||||||
13,757,998 | ||||||||
Energy — 2.8% | ||||||||
Chevron Corp. | 73,067 | 8,805,304 | ||||||
Total Common Stocks | $ | 306,638,147 | ||||||
Short-Term Investment Fund — 1.8% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 5,529,500 | $ | 5,529,500 | |||||
Total Investment Securities —100.1% | ||||||||
(Cost $226,200,951) | $ | 312,167,647 | ||||||
Liabilities in Excess of Other Assets — (0.1%) | (175,141 | ) | ||||||
Net Assets — 100.0% | $ | 311,992,506 |
* Non-income producing security.
∞ Open-End Fund.
Ω Represents the 7-day SEC yield as of December 31, 2019.
Portfolio Abbreviations:
ADR - American Depositary Receipt
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 306,638,147 | $ | — | $ | — | $ | 306,638,147 | ||||||||
Short-Term Investment Fund | 5,529,500 | — | — | 5,529,500 | ||||||||||||
Total | $ | 312,167,647 | $ | — | $ | — | $ | 312,167,647 |
See accompanying Notes to Financial Statements.
22
Touchstone Large Company Growth Fund – December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 99.7% | ||||||||
Information Technology — 42.5% | ||||||||
Adobe, Inc.* | 47,450 | $ | 15,649,484 | |||||
Automatic Data Processing, Inc. | 53,905 | 9,190,802 | ||||||
EPAM Systems, Inc.* | 25,275 | 5,362,344 | ||||||
Global Payments, Inc. | 23,520 | 4,293,811 | ||||||
Intuit, Inc. | 20,750 | 5,435,048 | ||||||
Microsoft Corp. | 117,800 | 18,577,060 | ||||||
Palo Alto Networks, Inc.* | 26,225 | 6,064,531 | ||||||
PayPal Holdings, Inc.* | 79,650 | 8,615,740 | ||||||
Visa, Inc. - Class A | 64,150 | 12,053,785 | ||||||
85,242,605 | ||||||||
Communication Services — 20.5% | ||||||||
Alphabet, Inc. - Class A* | 10,960 | 14,679,714 | ||||||
Facebook, Inc. - Class A* | 52,425 | 10,760,231 | ||||||
Sirius XM Holdings, Inc. | 625,300 | 4,470,895 | ||||||
Tencent Holdings Ltd. (China) ADR | 232,775 | 11,175,528 | ||||||
41,086,368 | ||||||||
Consumer Discretionary — 18.7% | ||||||||
Alibaba Group Holding Ltd. (China) ADR* | 66,550 | 14,115,255 | ||||||
Amazon.com, Inc.* | 5,000 | 9,239,200 | ||||||
Booking Holdings, Inc.* | 2,735 | 5,616,952 | ||||||
Burlington Stores, Inc.* | 18,375 | 4,190,051 | ||||||
Royal Caribbean Cruises Ltd. | 32,900 | 4,392,479 | ||||||
37,553,937 | ||||||||
Health Care — 16.4% | ||||||||
Abbott Laboratories | 52,225 | 4,536,264 | ||||||
Becton Dickinson and Co. | 22,650 | 6,160,121 | ||||||
Boston Scientific Corp.* | 67,250 | 3,041,045 | ||||||
Elanco Animal Health, Inc.* | 141,175 | 4,157,604 | ||||||
Neurocrine Biosciences, Inc.* | 21,025 | 2,259,977 | ||||||
Thermo Fisher Scientific, Inc. | 13,600 | 4,418,232 | ||||||
Zoetis, Inc. | 62,000 | 8,205,700 | ||||||
32,778,943 | ||||||||
Consumer Staples — 1.6% | ||||||||
Monster Beverage Corp.* | 48,900 | 3,107,595 | ||||||
Total Common Stocks | $ | 199,769,448 | ||||||
Short-Term Investment Fund — 0.3% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 668,225 | $ | 668,225 | |||||
Total Investment Securities — 100.0% | ||||||||
(Cost $100,730,729) | $ | 200,437,673 | ||||||
Other Assets in Excess of Liabilities — 0.0% | 47,312 | |||||||
Net Assets — 100.0% | $ | 200,484,985 |
* Non-income producing security.
∞ Open-End Fund.
Ω Represents the 7-day SEC yield as of December 31, 2019.
Portfolio Abbreviations:
ADR - American Depositary Receipt
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 199,769,448 | $ | — | $ | — | $ | 199,769,448 | ||||||||
Short-term Investment Fund | 668,225 | — | — | 668,225 | ||||||||||||
Total | $ | 200,437,673 | $ | — | $ | — | $ | 200,437,673 |
See accompanying Notes to Financial Statements.
23
Touchstone Ohio Tax-Free Bond Fund – December 31, 2019 (Unaudited)
Principal | Interest | Maturity | Market | |||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Fixed Rate Revenue Bonds — 71.2% | ||||||||||||||||
$ | 500,000 | New Albany OH Cmnty Auth (Ref) Ser C | 5.000 | % | 10/01/24 | $ | 549,540 | |||||||||
375,000 | Univ of Akron OH (Ref) Ser A | 5.000 | 01/01/28 | 424,620 | ||||||||||||
650,000 | Montgomery Co Oh Rev (Unrefunded Catholic Hlth Initiatives) | 5.250 | 05/01/29 | 738,614 | ||||||||||||
750,000 | Cleveland OH Income Tax Rev (Ref Sub Lien) Ser B 2 | 5.000 | 10/01/29 | 887,850 | ||||||||||||
500,000 | Hamilton Co OH Hosp Facs Rev (Uc Hlth) | 5.000 | 02/01/30 | 561,190 | ||||||||||||
1,000,000 | Butler Co OH Hosp Facs (Ref Cincinnati Children’s Hosp) | 5.000 | 05/15/30 | 1,309,080 | ||||||||||||
1,000,000 | Hamilton Co OH Student Rev (Ref Stratford Heights Proj) | 5.000 | 06/01/30 | 1,015,060 | ||||||||||||
200,000 | Dayton OH Wtr Sys Rev | 4.000 | 12/01/30 | 227,490 | ||||||||||||
1,000,000 | Green OH Cmnty Learning Ctr (Ref) | 4.000 | 12/01/30 | 1,071,820 | ||||||||||||
500,000 | Butler Co OH Hosp Facs (Kettering Health Network Oblig) | 5.250 | 04/01/31 | 521,180 | ||||||||||||
1,000,000 | Wright OH St Univ (Gen Recpts) Ser A | 5.000 | 05/01/31 | 1,038,960 | ||||||||||||
750,000 | Middleburg Heights OH Hosp Rev (Facs Southwest Gen) | 5.125 | 08/01/31 | 790,162 | ||||||||||||
1,000,000 | Kent OH St Univ Rev (Gen Recpts) Ser A | 4.500 | 05/01/32 | 1,062,160 | ||||||||||||
1,000,000 | Hamilton Co OH Hlth Care Facs (Christ Hosp Proj) | 5.250 | 06/01/32 | 1,095,960 | ||||||||||||
1,000,000 | Cuyahoga Co OH COP (Convention Hotel Proj) | 5.000 | 12/01/32 | 1,127,960 | ||||||||||||
1,060,000 | OH St EDR (Enterprise Bd Fd) Ser 7 | 4.750 | 12/01/32 | 1,091,927 | ||||||||||||
500,000 | OH St Univ Ser A | 4.000 | 12/01/32 | 548,820 | ||||||||||||
150,000 | OH Univ Gen Recpts Athens (Ref) Ser A | 5.000 | 12/01/32 | 181,569 | ||||||||||||
390,000 | Port Of Gtr Cincinnati Dev Aut | 4.000 | 12/01/32 | 446,265 | ||||||||||||
265,000 | OH St Hgr Edl Fac Commis (Ref Xavier Univ) Ser C | 5.000 | 05/01/33 | 303,626 | ||||||||||||
1,080,000 | Hamilton Co OH Hosp Facs Rev (Ref Cincinnati Childrens Hosp) | 5.000 | 05/15/33 | 1,228,749 | ||||||||||||
970,000 | Franklin Co OH Sales Tax Rev (Various Purpose) | 4.000 | 06/01/33 | 1,119,991 | ||||||||||||
1,000,000 | Hamilton Co OH EDR (Ref King Highland Cmnty Urban) | 5.000 | 06/01/33 | 1,158,470 | ||||||||||||
2,000,000 | Cincinnati OH EDR (U Square The Loop Proj) | 5.000 | 11/01/33 | 2,127,900 | ||||||||||||
525,000 | OH St Univ Ser A | 4.000 | 12/01/33 | 575,452 | ||||||||||||
265,000 | Cleveland OH Wtr Rev (Ref) Ser Y | 4.000 | 01/01/34 | 284,811 | ||||||||||||
500,000 | OH St Hgr Edl Fac Commis (Ref Univ Findlay Proj) | 5.000 | 03/01/34 | 575,795 | ||||||||||||
625,000 | Hamilton Co OH Hosp Facs Rev (Ref Cincinnati Childrens Hosp) | 5.000 | 05/15/34 | 710,181 | ||||||||||||
500,000 | Cuyahoga Co OH Sales Tax Rev (Ref) | 5.000 | 12/01/34 | 579,385 | ||||||||||||
215,000 | Miami Co OH Hosp Facs Rev (Ref & Impt Kettering Health Ne) | 5.000 | 08/01/35 | 259,587 | ||||||||||||
570,000 | Miami Univ OH (Ref) | 5.000 | 09/01/35 | 679,930 | ||||||||||||
1,085,000 | Cincinnati OH Urban Redev Rev (Mercer Commons Phase 2 Proj) Ser B | 5.000 | 11/01/35 | 1,265,794 | ||||||||||||
500,000 | Polaris Career Ctr OH COP | 5.000 | 11/01/35 | 584,820 | ||||||||||||
475,000 | Cincinnati OH Wtr Sys Rev Ser A | 5.000 | 12/01/35 | 562,405 | ||||||||||||
200,000 | Clermont Co OH Port Auth Lease (W Clermont Local Sch Dist Proj) | 5.000 | 12/01/35 | 232,524 | ||||||||||||
290,000 | OH St Hgr Edl Fac Commis (University Of Dayton 2018 Pro) Ser A | 4.000 | 12/01/35 | 326,247 | ||||||||||||
500,000 | OH St Hgr Edl Fac Commis (Ref Higher Eductnl Fac John Ca) | 5.000 | 04/01/36 | 563,265 | ||||||||||||
550,000 | Franklin Co OH Hosp Facs Rev (Ref Nationwide Childrens Hosp) | 4.000 | 11/01/36 | 611,705 | ||||||||||||
1,000,000 | OH St Parks & Recreation Cap (Lease Approp Impt Fund Projs S) | 5.000 | 12/01/36 | 1,239,030 | ||||||||||||
500,000 | Cleveland OH Arpt Sys Rev (Ser B) | 5.000 | 01/01/37 | 611,650 | ||||||||||||
1,000,000 | Univ Of Cincinnati OH Recpts (Ref ) Ser A | 5.000 | 06/01/37 | 1,227,920 | ||||||||||||
340,000 | Confluence Cmnty Auth OH (Stadium & Sports Proj) | 4.000 | 05/01/39 | 381,096 | ||||||||||||
160,000 | Warren Co. OH Hlth Care Facs (Ref Otterbein Homes Ser A) | 4.000 | 07/01/39 | 174,070 | ||||||||||||
250,000 | OH St Hgr Edl Fac Commis (Denison Univ Proj) | 5.000 | 11/01/39 | 313,438 | ||||||||||||
1,000,000 | Franklin Co. OH Rev (Ser A) | 4.000 | 12/01/39 | 1,121,930 | ||||||||||||
1,000,000 | OH St Hosp Fac Rev (Cleveland Clinic Hlth Sys Obli) | 4.000 | 01/01/40 | 1,132,260 | ||||||||||||
315,000 | Akron OH Income Tax Rev | 4.000 | 12/01/41 | 343,832 | ||||||||||||
Total Fixed Rate Revenue Bonds | $ | 34,986,090 | ||||||||||||||
General Obligation Bonds — 21.9% | ||||||||||||||||
835,000 | Licking Heights OH LSD UTGO | 6.400 | 12/01/28 | 1,053,069 | ||||||||||||
1,000,000 | Toledo OH CSD (Ref Sch Facs Impt) UTGO | 5.000 | 12/01/32 | 1,132,160 |
24
Touchstone Ohio Tax-Free Bond Fund (Unaudited) (Continued)
Principal | Interest | Maturity | Market | |||||||||||||
Amount | Rate | Date | Value | |||||||||||||
General Obligation Bonds — 21.9% (Continued) | ||||||||||||||||
$ | 300,000 | Upper Arlington OH (Ref Various Purpose) LTGO | 4.000 | % | 12/01/32 | $ | 335,820 | |||||||||
345,000 | Bowling Green OH CSD (Ref) UTGO | 5.000 | 12/01/34 | 402,001 | ||||||||||||
700,000 | Miami Vly Career Tech Center O UTGO | 4.000 | 12/01/34 | 797,811 | ||||||||||||
500,000 | Three Rivers OH LSD (Ref) UTGO | 5.000 | 12/01/34 | 575,555 | ||||||||||||
500,000 | Cuyahoga Co. Oh (Ser A) LTGO | 3.000 | 12/01/35 | 522,210 | ||||||||||||
500,000 | Dublin OH (Ser A) LTGO | 5.000 | 12/01/35 | 629,155 | ||||||||||||
435,000 | Miami Trace OH LSD UTGO | 5.000 | 12/01/35 | 511,034 | ||||||||||||
200,000 | Milford OH Exempt Vlg Sch Dist (Ref) UTGO | 5.000 | 12/01/35 | 233,380 | ||||||||||||
500,000 | Lakewood OH (Ref) LTGO | 5.000 | 12/01/36 | 598,110 | ||||||||||||
500,000 | Greene Co OH Votech Sch Dist (Sch Facs Construction & Impt) UTGO | 4.000 | 12/01/37 | 570,055 | ||||||||||||
1,000,000 | Hamilton Co OH (Ref) LTGO Ser A | 5.000 | 12/01/37 | 1,218,040 | ||||||||||||
1,250,000 | Brecksville-Broadview Heights OH CSD (Sch Facs Impt) UTGO | 5.000 | 12/01/38 | 1,413,162 | ||||||||||||
300,000 | Lexington OH LSD (Ser A) UTGO | 4.000 | 10/01/39 | 337,965 | ||||||||||||
400,000 | Athens OH CSD (Ser A) UTGO | 4.000 | 12/01/40 | 448,972 | ||||||||||||
Total General Obligation Bonds | $ | 10,778,499 | ||||||||||||||
Pre-refunded/Escrowed to Maturity(A) — 5.2% | ||||||||||||||||
350,000 | Montgomery Co OH Rev (Prerefunded Catholic Hlth Initiatives) Pre-refunded @ $100 | 5.250 | 05/01/29 | 397,583 | ||||||||||||
345,000 | Univ of Toledo OH Ser B Pre-refunded @ $100 | 5.000 | 06/01/29 | 364,034 | ||||||||||||
1,500,000 | Cincinnati OH CSD (Ref Sch Impt) LTGO Pre-refunded @ $100 | 5.000 | 06/01/31 | 1,524,420 | ||||||||||||
250,000 | Lakewood OH CSD (Sch Facs Impt) UTGO Ser A Pre-refunded @ $100 | 5.000 | 11/01/33 | 277,440 | ||||||||||||
Total Pre-refunded/Escrowed to Maturity | $ | 2,563,477 | ||||||||||||||
Variable Rate Demand Notes(B)(C)(D) — 1.2% | ||||||||||||||||
400,000 | Allen Co OH Hosp Facs Rev (Adj Catholic Healthcare C) (LOC: Union Bank NA) | 0.800 | 06/01/34 | 400,000 | ||||||||||||
200,000 | OH St Hgr Edl Fac Commis (Hosp Cleveland Clinic Hlth Sys) (LIQ: Bank Of Ny Mellon Trust) | 0.850 | 01/01/39 | 200,000 | ||||||||||||
Total Variable Rate Demand Notes | $ | 600,000 | ||||||||||||||
Total Investment Securities — 99.5% | ||||||||||||||||
(Cost $45,831,722) | $ | 48,928,066 | ||||||||||||||
Other Assets in Excess of Liabilities — 0.5% | 235,401 | |||||||||||||||
Net Assets — 100.0% | $ | 49,163,467 |
(A) | Bonds denoted as pre-refunded are anticipated to be redeemed prior to their scheduled maturity. The dates indicated are the stipulated pre-refunded dates. |
(B) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(C) | Floating and variable rate demand notes (“put bonds”) earn interest at a coupon rate which fluctuates at specified intervals, usually daily, monthly or semi-annually. The interest rates shown are the coupon rates in effect at December 31, 2019. Put bonds may be redeemed at the discretion of the holder on specified dates prior to maturity. Mandatory put bonds are automatically redeemed at a specified put date unless action is taken by the holder to prevent redemption. |
(D) | Demand Feature - Maturities shown are the final maturities, not the date on which principal could be recovered through the demand feature. |
As of December 31, 2019, the Touchstone Ohio Tax-Free Bond Fund was invested exclusively in debt obligations issued by the State of Ohio and its political subdivisions, agencies, authorities and instrumentalities and by other issuers, the interest from which is exempt from Ohio personal income tax. The Touchstone Ohio Tax-Free Bond Fund is a non-diversified Fund under the Investment Company Act of 1940. Thus, the Fund may invest in fewer issuers than those of a diversified fund. As of December 31, 2019, there were no investments of 10% or greater in any one issuer held by the Fund.
25
Touchstone Ohio Tax-Free Bond Fund (Unaudited) (Continued)
Portfolio Abbreviations:
COP – Certificates of Participation
CSD – City School District
EDR – Economic Development Revenue
LIQ - Liquidity Agreement
LOC – Letter of Credit
LSD – Local School District
LTGO – Limited Tax General Obligation
UTGO – Unlimited Tax General Obligation
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Bonds | $ | — | $ | 48,928,066 | $ | — | $ | 48,928,066 |
See accompanying Notes to Financial Statements.
26
Touchstone Small Company Fund– December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 102.1% | ||||||||
Information Technology — 22.6% | ||||||||
8x8, Inc.* | 661,161 | $ | 12,099,246 | |||||
Aspen Technology, Inc.* | 90,506 | 10,944,891 | ||||||
Avaya Holdings Corp.* | 1,302,474 | 17,583,399 | ||||||
Cerence, Inc.* | 576,527 | 13,046,806 | ||||||
Envestnet, Inc.* | 173,000 | 12,045,990 | ||||||
ExlService Holdings, Inc.* | 175,324 | 12,178,005 | ||||||
j2 Global, Inc. | 211,819 | 19,849,558 | ||||||
KBR, Inc. | 680,256 | 20,747,808 | ||||||
LogMeIn, Inc. | 141,900 | 12,166,506 | ||||||
MAXIMUS, Inc. | 159,101 | 11,835,523 | ||||||
Nice Ltd. ADR (Israel)* | 76,820 | 11,918,623 | ||||||
Nuance Communications, Inc.* | 688,818 | 12,281,625 | ||||||
Onto Innovation, Inc.* | 499,378 | 18,247,272 | ||||||
Qualys, Inc.* | 142,287 | 11,862,467 | ||||||
Verint Systems, Inc.* | 334,677 | 18,527,719 | ||||||
215,335,438 | ||||||||
Health Care — 21.8% | ||||||||
Addus HomeCare Corp.* | 123,600 | 12,016,392 | ||||||
Allscripts Healthcare Solutions, Inc.* | 1,183,249 | 11,613,589 | ||||||
Bio-Rad Laboratories, Inc. - Class A* | 33,864 | 12,530,696 | ||||||
Bio-Techne Corp. | 55,776 | 12,243,390 | ||||||
Chemed Corp. | 28,028 | 12,311,579 | ||||||
Encompass Health Corp. | 283,400 | 19,631,118 | ||||||
Globus Medical, Inc. - Class A* | 289,951 | 17,072,315 | ||||||
Haemonetics Corp.* | 99,948 | 11,484,025 | ||||||
HMS Holdings Corp.* | 392,100 | 11,606,160 | ||||||
Integra LifeSciences Holdings Corp.* | 205,989 | 12,005,039 | ||||||
NuVasive, Inc.* | 160,830 | 12,438,592 | ||||||
Omnicell, Inc.* | 148,242 | 12,114,336 | ||||||
Premier, Inc. - Class A* | 322,013 | 12,197,852 | ||||||
Providence Service Corp. (The)* | 193,598 | 11,457,130 | ||||||
Tactile Systems Technology, Inc.* | 178,535 | 12,052,898 | ||||||
Vericel Corp.* | 844,300 | 14,690,820 | ||||||
207,465,931 | ||||||||
Industrials — 21.6% | ||||||||
ASGN, Inc.* | 171,623 | 12,180,084 | ||||||
Clean Harbors, Inc.* | 139,394 | 11,953,035 | ||||||
Comfort Systems USA, Inc. | 242,225 | 12,074,916 | ||||||
Crane Co. | 142,852 | 12,339,556 | ||||||
Curtiss-Wright Corp. | 116,000 | 16,343,240 | ||||||
Harsco Corp.* | 525,500 | 12,091,755 | ||||||
ITT, Inc. | 314,344 | 23,233,165 | ||||||
Mobile Mini, Inc. | 315,442 | 11,958,406 | ||||||
NV5 Global, Inc.* | 206,527 | 10,419,287 | ||||||
Quanta Services, Inc. | 466,545 | 18,993,047 | ||||||
Rexnord Corp.* | 538,120 | 17,553,474 | ||||||
SkyWest, Inc. | 336,901 | 21,773,912 | ||||||
Watts Water Technologies, Inc. -Class A | 123,300 | 12,300,408 | ||||||
Woodward, Inc. | 102,518 | 12,142,232 | ||||||
205,356,517 | ||||||||
Consumer Discretionary — 17.2% | ||||||||
1-800-Flowers.com, Inc. - Class A* | 877,300 | 12,720,850 | ||||||
Aaron’s, Inc. | 204,726 | 11,691,902 | ||||||
Adtalem Global Education, Inc.* | 352,516 | 12,327,485 | ||||||
Bloomin’ Brands, Inc. | 523,303 | 11,549,297 | ||||||
Designer Brands, Inc. - Class A | 786,871 | 12,385,350 | ||||||
Fox Factory Holding Corp.* | 178,900 | 12,446,073 | ||||||
frontdoor, Inc.* | 434,867 | 20,621,393 | ||||||
Funko, Inc. - Class A* | 618,500 | 10,613,460 | ||||||
Oxford Industries, Inc. | 160,800 | 12,127,536 | ||||||
Steven Madden Ltd. | 280,417 | 12,060,735 | ||||||
Strategic Education, Inc. | 77,700 | 12,346,530 | ||||||
Texas Roadhouse, Inc. | 210,859 | 11,875,579 | ||||||
TopBuild Corp.* | 110,526 | 11,393,020 | ||||||
164,159,210 | ||||||||
Financials — 9.7% | ||||||||
Glacier Bancorp, Inc. | 266,114 | 12,238,583 | ||||||
TCF Financial Corp. | 492,586 | 23,053,025 | ||||||
Webster Financial Corp. | 418,114 | 22,310,563 | ||||||
Western Alliance Bancorp | 402,796 | 22,959,372 | ||||||
WSFS Financial Corp. | 275,806 | 12,132,706 | ||||||
92,694,249 | ||||||||
Communication Services — 4.1% | ||||||||
Cargurus, Inc.* | 316,600 | 11,137,988 | ||||||
Cogent Communications Holdings, Inc. | 188,775 | 12,423,283 | ||||||
QuinStreet, Inc.* | 982,100 | 15,035,951 | ||||||
38,597,222 | ||||||||
Consumer Staples — 2.5% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 506,524 | 11,518,356 | ||||||
Chefs’ Warehouse, Inc. (The)* | 321,221 | 12,241,732 | ||||||
23,760,088 | ||||||||
Real Estate — 1.3% | ||||||||
Corporate Office Properties Trust REIT | 414,657 | 12,182,623 | ||||||
Energy — 1.3% | ||||||||
Cactus, Inc. - Class A | 352,188 | 12,087,092 | ||||||
Total Common Stocks | $ | 971,638,370 | ||||||
Short-Term Investment Fund — 3.7% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 35,677,774 | $ | 35,677,774 | |||||
Total Investment Securities —105.8% | ||||||||
(Cost $771,012,250) | $ | 1,007,316,144 | ||||||
Liabilities in Excess of Other Assets — (5.8%) | (55,299,753 | ) | ||||||
Net Assets — 100.0% | $ | 952,016,391 |
* Non-income producing security.
∞Open-End Fund.
Ω Represents the 7-day SEC yield as of December 31, 2019.
27
Touchstone Small Company Fund(Unaudited) (Continued)
Portfolio Abbreviations:
ADR -American Depositary Receipt
REIT- Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 971,638,370 | $ | — | $ | — | $ | 971,638,370 | ||||||||
Short-term Investment Fund | 35,677,774 | — | — | 35,677,774 | ||||||||||||
Total | $ | 1,007,316,144 | $ | — | $ | — | $ | 1,007,316,144 |
See accompanying Notes to Financial Statements.
28
Touchstone Value Fund – December 31, 2019 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.5% | ||||||||
Financials — 19.0% | ||||||||
American Express Co. | 60,722 | $ | 7,559,282 | |||||
American International Group, Inc. | 183,792 | 9,434,043 | ||||||
Chubb Ltd. (Switzerland) | 48,012 | 7,473,548 | ||||||
JPMorgan Chase & Co. | 85,824 | 11,963,866 | ||||||
New York Community Bancorp, Inc. | 300,102 | 3,607,226 | ||||||
Northern Trust Corp. | 96,937 | 10,298,587 | ||||||
US Bancorp | 145,634 | 8,634,640 | ||||||
Wells Fargo & Co. | 204,282 | 10,990,372 | ||||||
69,961,564 | ||||||||
Industrials — 15.6% | ||||||||
Deere & Co. | 26,305 | 4,557,604 | ||||||
General Dynamics Corp. | 20,357 | 3,589,957 | ||||||
General Electric Co. | 976,668 | 10,899,615 | ||||||
Jacobs Engineering Group, Inc. | 52,869 | 4,749,222 | ||||||
JB Hunt Transport Services, Inc. | 40,273 | 4,703,081 | ||||||
Johnson Controls International PLC | 90,797 | 3,696,346 | ||||||
Spirit AeroSystems Holdings, Inc. - Class A | 84,210 | 6,137,225 | ||||||
United Technologies Corp. | 63,162 | 9,459,141 | ||||||
Westinghouse Air Brake Technologies Corp. | 122,524 | 9,532,366 | ||||||
57,324,557 | ||||||||
Energy — 13.0% | ||||||||
Chevron Corp. | 78,391 | 9,446,899 | ||||||
EOG Resources, Inc. | 91,793 | 7,688,582 | ||||||
Hess Corp. | 137,147 | 9,162,791 | ||||||
Phillips 66 | 98,092 | 10,928,430 | ||||||
Schlumberger Ltd. | 71,910 | 2,890,782 | ||||||
Valero Energy Corp. | 83,905 | 7,857,703 | ||||||
47,975,187 | ||||||||
Consumer Discretionary — 11.7% | ||||||||
Advance Auto Parts, Inc. | 62,897 | 10,073,584 | ||||||
Aramark | 197,261 | 8,561,127 | ||||||
Dollar General Corp. | 78,314 | 12,215,418 | ||||||
Lowe’s Cos., Inc. | 101,894 | 12,202,825 | ||||||
43,052,954 | ||||||||
Information Technology — 11.6% | ||||||||
Broadcom, Inc. | 24,886 | 7,864,474 | ||||||
Microsoft Corp. | 68,108 | 10,740,632 | ||||||
Oracle Corp. | 159,230 | 8,436,005 | ||||||
QUALCOMM, Inc. | 93,024 | 8,207,508 | ||||||
Texas Instruments, Inc. | 58,816 | 7,545,505 | ||||||
42,794,124 | ||||||||
Health Care — 11.2% | ||||||||
Anthem, Inc. | 29,388 | 8,876,058 | ||||||
CVS Health Corp. | 152,288 | 11,313,476 | ||||||
Medtronic PLC (Ireland) | 106,224 | 12,051,113 | ||||||
UnitedHealth Group, Inc. | 30,236 | 8,888,779 | ||||||
41,129,426 | ||||||||
Materials — 7.1% | ||||||||
Air Products & Chemicals, Inc. | 54,947 | 12,911,996 | ||||||
Corteva, Inc. | 281,054 | 8,307,956 | ||||||
DuPont de Nemours, Inc. | 74,422 | 4,777,892 | ||||||
25,997,844 | ||||||||
Utilities — 5.0% | ||||||||
Dominion Energy, Inc. | 100,098 | 8,290,116 | ||||||
Edison International | 55,906 | 4,215,871 | ||||||
Exelon Corp. | 131,603 | 5,999,781 | ||||||
18,505,768 | ||||||||
Communication Services — 3.2% | ||||||||
Comcast Corp. - Class A | 259,795 | 11,682,981 | ||||||
Real Estate — 1.1% | ||||||||
Simon Property Group, Inc. REIT | 28,314 | 4,217,653 | ||||||
Total Common Stocks | $ | 362,642,058 | ||||||
Short-Term Investment Fund — 1.6% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 1.51%∞Ω | 5,834,065 | $ | 5,834,065 | |||||
Total Investment Securities —100.1% | ||||||||
(Cost $285,893,085) | $ | 368,476,123 | ||||||
Liabilities in Excess of Other Assets — (0.1%) | (396,617 | ) | ||||||
Net Assets — 100.0% | $ | 368,079,506 |
∞ Open-End Fund.
Ω Represents the 7-day SEC yield as of December 31, 2019.
Portfolio Abbreviations:
PLC - Public Limited Company
REIT - Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 362,642,058 | $ | — | $ | — | $ | 362,642,058 | ||||||||
Short-Term Investment Fund | 5,834,065 | — | — | 5,834,065 | ||||||||||||
Total | $ | 368,476,123 | $ | — | $ | — | $ | 368,476,123 |
See accompanying Notes to Financial Statements.
29
Statements of Assets and Liabilities
December 31, 2019 (Unaudited)
Touchstone | ||||||||||||||||
Touchstone | International | Touchstone | ||||||||||||||
Touchstone | International | Growth | International | |||||||||||||
Balanced | Equity | Opportunities | Small Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 241,999,458 | $ | 135,968,118 | $ | 28,154,056 | $ | 131,156,047 | ||||||||
Investments, at market value(A) | $ | 368,214,856 | $ | 149,182,904 | $ | 35,436,810 | $ | 155,266,350 | ||||||||
Cash | 100 | 15 | 7 | 20 | ||||||||||||
Foreign currency(B) | — | — | — | 87,225 | ||||||||||||
Dividends and interest receivable | 802,778 | 64,863 | 3,464 | 138,051 | ||||||||||||
Receivable for capital shares sold | 808,525 | 155,518 | 30,974 | 55,735 | ||||||||||||
Receivable for investments sold | 232,944 | — | 1,578,716 | — | ||||||||||||
Receivable for securities lending income | — | 91 | 283 | 2,136 | ||||||||||||
Tax reclaim receivable | 1,053 | 386,753 | 6,799 | 138,696 | ||||||||||||
Other assets | 26,476 | 23,793 | 16,275 | 29,369 | ||||||||||||
Total Assets | 370,086,732 | 149,813,937 | 37,073,328 | 155,717,582 | ||||||||||||
Liabilities | ||||||||||||||||
Due to Prime Broker | — | 1,012 | 50 | — | ||||||||||||
Dividends payable | — | — | — | — | ||||||||||||
Payable for return of collateral for securities on loan | — | — | — | 3,881,514 | ||||||||||||
Payable for capital shares redeemed | 309,408 | 512,927 | 65,384 | 256,752 | ||||||||||||
Payable for investments purchased | 575,000 | — | 1,544,578 | 15,841 | ||||||||||||
Payable to Investment Advisor | 158,615 | 81,602 | 8,175 | 112,139 | ||||||||||||
Payable to other affiliates | 113,067 | 26,964 | 594 | 2,871 | ||||||||||||
Payable to Trustees | 9,533 | 9,533 | 9,539 | 9,539 | ||||||||||||
Payable to Transfer Agent | 141,080 | 102,250 | 4,966 | 77,028 | ||||||||||||
Payable for professional services | 20,119 | 27,581 | 25,763 | 26,564 | ||||||||||||
Other accrued expenses and liabilities | 16,954 | 25,038 | 10,550 | 33,522 | ||||||||||||
Total Liabilities | 1,343,776 | 786,907 | 1,669,599 | 4,415,770 | ||||||||||||
Net Assets | $ | 368,742,956 | $ | 149,027,030 | $ | 35,403,729 | $ | 151,301,812 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 242,377,644 | $ | 136,321,400 | $ | 31,244,898 | $ | 139,998,922 | ||||||||
Distributable earnings | 126,365,312 | 12,705,630 | 4,158,831 | 11,302,890 | ||||||||||||
Net Assets | $ | 368,742,956 | $ | 149,027,030 | $ | 35,403,729 | $ | 151,301,812 | ||||||||
(A) Includes market value of securities on loan of: | $ | — | $ | — | $ | — | $ | 3,697,869 | ||||||||
(B) Cost of foreign currency: | $ | — | $ | — | $ | — | $ | 86,246 |
See accompanying Notes to Financial Statements.
30
Statements of Assets and Liabilities(Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||||||||
Large Cap | Touchstone | Large Company | Ohio Tax-Free | Small | Touchstone | |||||||||||||||||
Focused | Large Cap | Growth | Bond | Company | Value | |||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||
$ | 965,034,485 | $ | 226,200,951 | $ | 100,730,729 | $ | 45,831,722 | $ | 771,012,250 | $ | 285,893,085 | |||||||||||
$ | 1,801,057,707 | $ | 312,167,647 | $ | 200,437,673 | $ | 48,928,066 | $ | 1,007,316,144 | $ | 368,476,123 | |||||||||||
149 | 23 | 14 | 35,505 | 97 | 5 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
1,481,586 | 355,868 | 85,812 | 312,104 | 530,940 | 429,005 | |||||||||||||||||
432,269 | 46,694 | 187,071 | 4,593 | 325,096 | 130,459 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
4,568 | — | — | — | 277 | — | |||||||||||||||||
141,926 | — | 4,088 | — | 8,004 | — | |||||||||||||||||
51,440 | 32,239 | 24,620 | 13,460 | 43,595 | 31,621 | |||||||||||||||||
1,803,169,645 | 312,602,471 | 200,739,278 | 49,293,728 | 1,008,224,153 | 369,067,213 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | 20,202 | — | — | |||||||||||||||||
24,044,775 | — | — | — | — | — | |||||||||||||||||
975,867 | 310,310 | 84,160 | 44,849 | 54,758,984 | 662,701 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
884,368 | 152,863 | 92,310 | 12,513 | 416,504 | 184,436 | |||||||||||||||||
392,074 | 10,827 | 9,144 | 6,876 | 214,638 | 8,959 | |||||||||||||||||
9,533 | 9,539 | 9,539 | 9,502 | 9,533 | 9,539 | |||||||||||||||||
565,773 | 99,086 | 34,760 | 10,166 | 623,530 | 94,783 | |||||||||||||||||
48,514 | 19,507 | 16,017 | 13,854 | 36,431 | 18,925 | |||||||||||||||||
60,209 | 7,833 | 8,363 | 12,299 | 148,142 | 8,364 | |||||||||||||||||
26,981,113 | 609,965 | 254,293 | 130,261 | 56,207,762 | 987,707 | |||||||||||||||||
$ | 1,776,188,532 | $ | 311,992,506 | $ | 200,484,985 | $ | 49,163,467 | $ | 952,016,391 | $ | 368,079,506 | |||||||||||
$ | 850,288,571 | $ | 228,591,773 | $ | 85,838,883 | $ | 46,098,782 | $ | 743,702,556 | $ | 285,385,419 | |||||||||||
925,899,961 | 83,400,733 | 114,646,102 | 3,064,685 | 208,313,835 | 82,694,087 | |||||||||||||||||
$ | 1,776,188,532 | $ | 311,992,506 | $ | 200,484,985 | $ | 49,163,467 | $ | 952,016,391 | $ | 368,079,506 | |||||||||||
$ | 23,631,534 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
31
Statements of Assets and Liabilities(Unaudited) (Continued)
Touchstone | ||||||||||||||||
Touchstone | International | Touchstone | ||||||||||||||
Touchstone | International | Growth | International | |||||||||||||
Balanced | Equity | Opportunities | Small Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 253,026,928 | $ | 96,739,485 | $ | 884,955 | $ | 2,024,051 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 11,871,012 | 6,023,129 | 39,413 | 131,736 | ||||||||||||
Net asset value price per share* | $ | 21.31 | $ | 16.06 | $ | 22.45 | $ | 15.36 | ||||||||
Maximum sales charge - Class A shares | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares | $ | 22.43 | $ | 16.91 | $ | 23.63 | $ | 16.17 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 43,026,441 | $ | 3,276,861 | $ | 233,839 | $ | 1,200,342 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 2,008,482 | 217,459 | 10,715 | 80,096 | ||||||||||||
Net asset value and offering price per share** | $ | 21.42 | $ | 15.07 | $ | 21.82 | $ | 14.99 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 72,689,587 | $ | 32,549,423 | $ | 2,190,071 | $ | 93,937,689 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 3,439,142 | 2,058,292 | 96,962 | 5,976,533 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 21.14 | $ | 15.81 | $ | 22.59 | $ | 15.72 | ||||||||
Pricing of Institutional Class Shares | ||||||||||||||||
Net assets applicable to Institutional Class shares | $ | — | $ | 16,461,261 | $ | 32,094,864 | $ | 54,139,730 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | 1,043,557 | 1,415,197 | 3,423,845 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | 15.77 | $ | 22.68 | $ | 15.81 | ||||||||
Pricing of Class R6 Shares | ||||||||||||||||
Net assets applicable to Class R6 shares | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | — | — | — | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | — | $ | — |
* There is no sales load on subscriptions of $1 million or more for all funds except for Ohio Tax-Free Bond Fund. There is no sales load on subscriptions of $500,000 or more for Ohio Tax-Free Bond Fund. Redemptions that were part of a $500,000 or $1million or more subscription, as applicable, may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase.
** Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge.
See accompanying Notes to Financial Statements.
32
Statements of Assets and Liabilities(Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||||||||
Large Cap | Touchstone | Large Company | Ohio Tax-Free | Small | Touchstone | |||||||||||||||||
Focused | Large Cap | Growth | Bond | Company | Value | |||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||
$ | 1,206,105,528 | $ | 3,302,333 | $ | 1,591,911 | $ | 31,567,500 | $ | 560,609,276 | $ | 31,668,284 | |||||||||||
28,200,410 | 230,676 | 36,546 | 2,700,335 | 116,579,583 | 3,258,102 | |||||||||||||||||
$ | 42.77 | $ | 14.32 | $ | 43.56 | $ | 11.69 | $ | 4.81 | $ | 9.72 | |||||||||||
5.00 | % | 5.00 | % | 5.00 | % | 2.00 | % | 5.00 | % | 5.00 | % | |||||||||||
$ | 45.02 | $ | 15.07 | $ | 45.85 | $ | 11.93 | $ | 5.06 | $ | 10.23 | |||||||||||
$ | 43,472,707 | $ | 7,537,492 | $ | 454,087 | $ | 2,328,440 | $ | 29,684,933 | $ | 3,626,146 | |||||||||||
1,093,821 | 534,846 | 10,732 | 198,875 | 12,573,502 | 374,520 | |||||||||||||||||
$ | 39.74 | $ | 14.09 | $ | 42.31 | $ | 11.71 | $ | 2.36 | $ | 9.68 | |||||||||||
$ | 391,293,121 | $ | 221,901,237 | $ | 18,638,679 | $ | 2,583,828 | $ | 275,848,103 | $ | 92,996,345 | |||||||||||
9,188,988 | 15,486,669 | 423,884 | 220,840 | 51,561,235 | 9,526,193 | |||||||||||||||||
$ | 42.58 | $ | 14.33 | $ | 43.97 | $ | 11.70 | $ | 5.35 | $ | 9.76 | |||||||||||
$ | 135,317,176 | $ | 79,251,444 | $ | 179,800,308 | $ | 12,683,699 | $ | 9,339,768 | $ | 239,788,731 | |||||||||||
3,173,251 | 5,524,223 | 4,073,041 | 1,083,988 | 1,749,736 | 24,639,026 | |||||||||||||||||
$ | 42.64 | $ | 14.35 | $ | 44.14 | $ | 11.70 | $ | 5.34 | $ | 9.73 | |||||||||||
$ | — | $ | — | $ | — | $ | — | $ | 76,534,311 | $ | — | |||||||||||
— | — | — | — | 15,454,928 | — | |||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | 4.95 | $ | — |
33
For the Six Months Ended December 31, 2019 (Unaudited)
Touchstone | ||||||||||||||||
Touchstone | International | Touchstone | ||||||||||||||
Touchstone | International | Growth | International | |||||||||||||
Balanced | Equity | Opportunities | Small Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends(A) | $ | 2,153,457 | $ | 936,220 | $ | 152,078 | $ | 1,040,405 | ||||||||
Interest | 1,948,994 | — | — | — | ||||||||||||
Income from securities loaned | 114 | 12,990 | 12,868 | 74,579 | ||||||||||||
Total Investment Income | 4,102,565 | 949,210 | 164,946 | 1,114,984 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 933,323 | 515,581 | 135,881 | 810,219 | ||||||||||||
Administration fees | 256,084 | 106,799 | 24,628 | 123,665 | ||||||||||||
Compliance fees and expenses | 1,180 | 1,179 | 1,179 | 1,179 | ||||||||||||
Custody fees | 18,325 | 20,880 | 8,246 | 43,609 | ||||||||||||
Professional fees | 20,156 | 24,769 | 21,891 | 29,656 | ||||||||||||
Transfer Agent fees, Class A | 94,878 | 65,086 | 640 | 3,100 | ||||||||||||
Transfer Agent fees, Class C | 14,694 | 3,996 | 145 | 1,122 | ||||||||||||
Transfer Agent fees, Class Y | 27,071 | 21,736 | 1,633 | 54,754 | ||||||||||||
Transfer Agent fees, Institutional Class | — | 61 | 4,430 | 17,214 | ||||||||||||
Transfer Agent fees, Class R6 | — | — | — | — | ||||||||||||
Registration Fees, Class A | 10,703 | 10,258 | 6,266 | 7,685 | ||||||||||||
Registration Fees, Class C | 6,412 | 4,296 | 2,033 | 4,943 | ||||||||||||
Registration Fees, Class Y | 8,887 | 6,873 | 4,608 | 8,596 | ||||||||||||
Registration Fees, Institutional Class | — | 2,657 | 2,487 | 8,112 | ||||||||||||
Registration Fees, Class R6 | — | — | — | — | ||||||||||||
Reports to Shareholders, Class A | 3,448 | 4,396 | 1,964 | 2,191 | ||||||||||||
Reports to Shareholders, Class C | 2,654 | 2,133 | 1,932 | 2,026 | ||||||||||||
Reports to Shareholders, Class Y | 3,139 | 3,439 | 2,089 | 4,688 | ||||||||||||
Reports to Shareholders, Institutional Class | — | 1,951 | 1,946 | 2,910 | ||||||||||||
Reports to Shareholders, Class R6 | — | — | — | — | ||||||||||||
Distribution expenses, Class A | 310,698 | 122,854 | 1,013 | 2,766 | ||||||||||||
Distribution and shareholder servicing expenses, Class C | 192,817 | 16,735 | 1,112 | 6,700 | ||||||||||||
Trustee fees | 10,627 | 10,627 | 10,633 | 10,633 | ||||||||||||
Other expenses | 78,611 | 53,362 | 13,597 | 64,506 | ||||||||||||
Total Expenses | 1,993,707 | 999,668 | 248,353 | 1,210,274 | ||||||||||||
Fees waived by the Advisor and/or Affiliates(B) | (127,786 | ) | (95,658 | ) | (93,617 | ) | (132,845 | ) | ||||||||
Net Expenses | 1,865,921 | 904,010 | 154,736 | 1,077,429 | ||||||||||||
Net Investment Income (Loss) | 2,236,644 | 45,200 | 10,210 | 37,555 | ||||||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||||||
Net realized gains (losses) on investments(C) | 36,598,156 | 6,240,586 | 1,799,463 | 6,486,150 | ||||||||||||
Net realized gains (losses) on foreign currency transactions | — | (23,106 | ) | 2,920 | (21,308 | ) | ||||||||||
Net realized losses on futures contracts | (39,366 | ) | — | — | — | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | (11,932,875 | ) | 4,807,121 | 8,743 | (2,246,705 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | — | 628 | (204 | ) | (304 | ) | ||||||||||
Net Realized and Unrealized Gains (Losses) on Investments | 24,625,915 | 11,025,229 | 1,810,922 | 4,217,833 | ||||||||||||
Change in Net Assets Resulting from Operations | $ | 26,862,559 | $ | 11,070,429 | $ | 1,821,132 | $ | 4,255,388 | ||||||||
(A)Net of foreign tax withholding of: | $ | 10,883 | $ | 85,232 | $ | 3,454 | $ | 98,137 |
(B)See Note 4 in Notes to Financial Statements.
(C)For the six month ended December 31, 2019, Large Cap Focused Fund had redemptions-in-kind of securities in the amount of $101,763,340. Net realized gains (losses) on investments includes the realized gain on the transactions of $88,186,971, which will not be recognized by the Fund for tax purposes.
See accompanying Notes to Financial Statements.
34
Statements of Operations(Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Large Cap | Touchstone | Large Company | Ohio | Touchstone | Touchstone | |||||||||||||||||
Focused | Large Cap | Growth | Tax-Free Bond | Small Company | Value | |||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||
$ | 14,495,689 | $ | 2,610,064 | $ | 531,619 | $ | 117 | $ | 4,645,144 | $ | 4,049,471 | |||||||||||
— | — | — | 847,962 | — | — | |||||||||||||||||
16,442 | 725 | 1,484 | — | 38,280 | 431 | |||||||||||||||||
14,512,131 | 2,610,789 | 533,103 | 848,079 | 4,683,424 | 4,049,902 | |||||||||||||||||
5,182,762 | 912,579 | 714,072 | 123,892 | 3,376,203 | 1,142,204 | |||||||||||||||||
1,262,443 | 220,540 | 158,756 | 35,929 | 739,531 | 254,799 | |||||||||||||||||
1,179 | 1,179 | 1,179 | 1,168 | 1,179 | 1,179 | |||||||||||||||||
13,828 | 6,031 | 4,252 | 2,092 | 11,451 | 5,146 | |||||||||||||||||
40,627 | 15,970 | 14,867 | 13,559 | 28,526 | 16,803 | |||||||||||||||||
335,513 | 1,762 | 744 | 9,038 | 384,710 | 18,831 | |||||||||||||||||
21,715 | 1,541 | 233 | 851 | 27,058 | 1,073 | |||||||||||||||||
214,379 | 92,098 | 9,146 | 572 | 194,512 | 40,212 | |||||||||||||||||
25,429 | 3,405 | 38,460 | 280 | 1,841 | 56,993 | |||||||||||||||||
— | — | — | — | 255 | — | |||||||||||||||||
14,841 | 6,591 | 4,808 | 3,027 | 14,537 | 6,441 | |||||||||||||||||
6,460 | 5,064 | 2,223 | 2,154 | 6,698 | 4,567 | |||||||||||||||||
11,258 | 8,620 | 6,925 | 2,969 | 11,431 | 7,608 | |||||||||||||||||
11,819 | 6,217 | 7,834 | 1,652 | 5,437 | 7,583 | |||||||||||||||||
— | — | — | — | 9,922 | — | |||||||||||||||||
8,140 | 2,003 | 1,958 | 2,152 | 14,886 | 2,989 | |||||||||||||||||
3,126 | 2,071 | 1,935 | 1,952 | 4,145 | 2,017 | |||||||||||||||||
9,252 | 7,361 | 2,298 | 1,920 | 16,976 | 4,228 | |||||||||||||||||
4,654 | 1,993 | 2,511 | 1,910 | 2,141 | 5,194 | |||||||||||||||||
— | — | — | — | 2,553 | — | |||||||||||||||||
1,470,729 | 4,316 | 1,813 | 41,332 | 701,336 | 41,791 | |||||||||||||||||
217,595 | 36,773 | 2,064 | 12,833 | 162,889 | 16,392 | |||||||||||||||||
10,627 | 10,633 | 10,633 | 10,596 | 10,627 | 10,633 | |||||||||||||||||
402,313 | 55,548 | 15,021 | 17,879 | 140,631 | 27,886 | |||||||||||||||||
9,268,689 | 1,402,295 | 1,001,732 | 287,757 | 5,869,475 | 1,674,569 | |||||||||||||||||
(1,050,494 | ) | (213,566 | ) | (156,781 | ) | (87,704 | ) | (526,107 | ) | (341,884 | ) | |||||||||||
8,218,195 | 1,188,729 | 844,951 | 200,053 | 5,343,368 | 1,332,685 | |||||||||||||||||
6,293,936 | 1,422,060 | (311,848 | ) | 648,026 | (659,944 | ) | 2,717,217 | |||||||||||||||
221,267,844 | 69,236 | 18,343,985 | (13,621 | ) | 8,122,329 | 2,815,487 | ||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
(49,721,744 | ) | 23,575,764 | 3,386,179 | 280,816 | 46,044,726 | 26,484,644 | ||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
171,546,100 | 23,645,000 | 21,730,164 | 267,195 | 54,167,055 | 29,300,131 | |||||||||||||||||
$ | 177,840,036 | $ | 25,067,060 | $ | 21,418,316 | $ | 915,221 | $ | 53,507,111 | $ | 32,017,348 | |||||||||||
$ | 50,572 | $ | — | $ | — | $ | — | $ | — | $ | — |
35
Statements of Changes in Net Assets
Touchstone | ||||||||||||||||
Touchstone | International | |||||||||||||||
Balanced Fund | Equity Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||
December 31, | Ended | December 31, | Ended | |||||||||||||
2019 | June 30, | 2019 | June 30, | |||||||||||||
(Unaudited) | 2019 | (Unaudited) | 2019 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income | $ | 2,236,644 | $ | 4,592,005 | $ | 45,200 | $ | 2,132,436 | ||||||||
Net realized gains (losses) on investments, foreign currency transactions and futures contracts | 36,558,790 | 11,328,793 | 6,217,480 | 987,326 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | (11,932,875 | ) | 14,547,961 | 4,807,749 | (5,801,966 | ) | ||||||||||
Change in Net Assets from Operations | 26,862,559 | 30,468,759 | 11,070,429 | (2,682,204 | ) | |||||||||||
Distributions to Shareholders: | ||||||||||||||||
Distributed earnings, Class A | (27,604,915 | ) | (14,828,141 | ) | (4,841,439 | ) | (13,527,353 | ) | ||||||||
Distributed earnings, Class C | (4,396,440 | ) | (2,152,416 | ) | (132,633 | ) | (697,755 | ) | ||||||||
Distributed earnings, Class Y | (7,962,458 | ) | (3,937,083 | ) | (2,048,259 | ) | (5,855,380 | ) | ||||||||
Distributed earnings, Institutional Class | — | — | (585,959 | ) | (322,138 | ) | ||||||||||
Total Distributions | (39,963,813 | ) | (20,917,640 | ) | (7,608,290 | ) | (20,402,626 | ) | ||||||||
Change in Net Assets from Share Transactions(A) | 42,789,108 | 20,066,055 | (9,799,283 | ) | (6,377,476 | ) | ||||||||||
Total Increase (Decrease) in Net Assets | 29,687,854 | 29,617,174 | (6,337,144 | ) | (29,462,306 | ) | ||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 339,055,102 | 309,437,928 | 155,364,174 | 184,826,480 | ||||||||||||
End of period | $ | 368,742,956 | $ | 339,055,102 | $ | 149,027,030 | $ | 155,364,174 |
(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 40 - 42.
See accompanying Notes to Financial Statements.
36
Statements of Changes in Net Assets(Continued)
Touchstone | ||||||||||||||||||||||
International | Touchstone | Touchstone | ||||||||||||||||||||
Growth | International | Large Cap | ||||||||||||||||||||
Opportunities Fund | Small Cap Fund | Focused Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | Six Months | Six Months | ||||||||||||||||||||
Ended | For the Year | Ended | For the Year | Ended | For the Year | |||||||||||||||||
December 31, | Ended | December 31, | Ended | December 31, | Ended | |||||||||||||||||
2019 | June 30, | 2019 | June 30, | 2019 | June 30, | |||||||||||||||||
(Unaudited) | 2019 | (Unaudited) | 2019 | (Unaudited) | 2019 | |||||||||||||||||
$ | 10,210 | $ | 5,340 | $ | 37,555 | $ | 2,399,320 | $ | 6,293,936 | $ | 15,868,059 | |||||||||||
1,802,383 | (4,917,129 | ) | 6,464,842 | (11,891,504 | ) | 221,267,844 | 252,285,256 | |||||||||||||||
8,539 | 3,313,241 | (2,247,009 | ) | (15,254,858 | ) | (49,721,744 | ) | (98,767,694 | ) | |||||||||||||
1,821,132 | (1,598,548 | ) | 4,255,388 | (24,747,042 | ) | 177,840,036 | 169,385,621 | |||||||||||||||
— | (96,098 | ) | (44,657 | ) | (348,193 | ) | (131,577,942 | ) | (118,892,191 | ) | ||||||||||||
— | (23,263 | ) | (23,075 | ) | (157,413 | ) | (4,739,943 | ) | (6,543,243 | ) | ||||||||||||
— | (327,855 | ) | (2,154,457 | ) | (9,166,622 | ) | (46,568,381 | ) | (41,722,772 | ) | ||||||||||||
(2,978 | ) | (4,250,657 | ) | (1,263,401 | ) | (10,641,767 | ) | (12,116,358 | ) | (7,761,439 | ) | |||||||||||
(2,978 | ) | (4,697,873 | ) | (3,485,590 | ) | (20,313,995 | ) | (195,002,624 | ) | (174,919,645 | ) | |||||||||||
(1,136,406 | ) | 6,952,126 | (50,916,636 | ) | (69,390,792 | ) | 61,412,494 | 10,391,963 | ||||||||||||||
681,748 | 655,705 | (50,146,838 | ) | (114,451,829 | ) | 44,249,906 | 4,857,939 | |||||||||||||||
34,721,981 | 34,066,276 | 201,448,650 | 315,900,479 | 1,731,938,626 | 1,727,080,687 | |||||||||||||||||
$ | 35,403,729 | $ | 34,721,981 | $ | 151,301,812 | $ | 201,448,650 | $ | 1,776,188,532 | $ | 1,731,938,626 |
37
Statements of Changes in Net Assets(Continued)
Touchstone | ||||||||||||||||
Touchstone | Large Company | |||||||||||||||
Large Cap Fund | Growth Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||
December 31, | Ended | December 31, | Ended | |||||||||||||
2019 | June 30, | 2019 | June 30, | |||||||||||||
(Unaudited) | 2019 | (Unaudited) | 2019 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 1,422,060 | $ | 2,836,859 | $ | (311,848 | ) | $ | (552,404 | ) | ||||||
Net realized gains (losses) on investments | 69,236 | 41,233,499 | 18,343,985 | 16,773,549 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 23,575,764 | (21,949,713 | ) | 3,386,179 | 5,681,900 | |||||||||||
Change in Net Assets from Operations | 25,067,060 | 22,120,645 | 21,418,316 | 21,903,045 | ||||||||||||
Distributions to Shareholders: | ||||||||||||||||
Distributed earnings, Class A | (218,889 | ) | (17,881 | ) | (108,766 | ) | (73,858 | ) | ||||||||
Distributed earnings, Class C | (440,616 | ) | — | (31,405 | ) | (12,084 | ) | |||||||||
Distributed earnings, Class Y | (14,927,652 | ) | (2,046,031 | ) | (1,238,483 | ) | (1,058,842 | ) | ||||||||
Distributed earnings, Institutional Class | (5,380,266 | ) | (635,594 | ) | (14,021,254 | ) | (12,527,470 | ) | ||||||||
Distributed earnings, Class R6 | — | — | — | — | ||||||||||||
Total Distributions | (20,967,423 | ) | (2,699,506 | ) | (15,399,908 | ) | (13,672,254 | ) | ||||||||
Change in Net Assets from Share Transactions(A) | 23,593,169 | (102,688,339 | ) | (31,325,516 | ) | (26,431,941 | ) | |||||||||
Total Increase (Decrease) in Net Assets | 27,692,806 | (83,267,200 | ) | (25,307,108 | ) | (18,201,150 | ) | |||||||||
Net Assets | ||||||||||||||||
Beginning of period | 284,299,700 | 367,566,900 | 225,792,093 | 243,993,243 | ||||||||||||
End of period | $ | 311,992,506 | $ | 284,299,700 | $ | 200,484,985 | $ | 225,792,093 |
(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 42 - 44.
See accompanying Notes to Financial Statements.
38
Statements of Changes in Net Assets(Continued)
Touchstone | ||||||||||||||||||||||
Ohio Tax-Free | Touchstone | Touchstone | ||||||||||||||||||||
Bond Fund | Small Company Fund | Value Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | Six Months | Six Months | ||||||||||||||||||||
Ended | For the Year | Ended | For the Year | Ended | For the Year | |||||||||||||||||
December 31, | Ended | December 31, | Ended | December 31, | Ended | |||||||||||||||||
2019 | June 30, | 2019 | June 30, | 2019 | June 30, | |||||||||||||||||
(Unaudited) | 2019 | (Unaudited) | 2019 | (Unaudited) | 2019 | |||||||||||||||||
$ | 648,026 | $ | 1,350,638 | $ | (659,944 | ) | $ | (2,201,712 | ) | $ | 2,717,217 | $ | 6,831,156 | |||||||||
(13,621 | ) | 27,980 | 8,122,329 | 115,229,557 | 2,815,487 | 61,453,118 | ||||||||||||||||
280,816 | 1,201,309 | 46,044,726 | (133,934,390 | ) | 26,484,644 | (35,563,563 | ) | |||||||||||||||
915,221 | 2,579,927 | 53,507,111 | (20,906,545 | ) | 32,017,348 | 32,720,711 | ||||||||||||||||
(443,931 | ) | (971,245 | ) | (31,748,103 | ) | (70,438,346 | ) | (1,850,888 | ) | (4,381,019 | ) | |||||||||||
(24,988 | ) | (90,903 | ) | (3,292,320 | ) | (18,479,476 | ) | (176,586 | ) | (387,177 | ) | |||||||||||
(40,843 | ) | (131,661 | ) | (14,318,842 | ) | (40,694,612 | ) | (5,141,096 | ) | (10,881,469 | ) | |||||||||||
(166,257 | ) | (156,784 | ) | (472,170 | ) | (92,997 | ) | (12,987,477 | ) | (26,051,472 | ) | |||||||||||
— | — | (6,772,410 | ) | (15,325,342 | ) | — | — | |||||||||||||||
(676,019 | ) | (1,350,593 | ) | (56,603,845 | ) | (145,030,773 | ) | (20,156,047 | ) | (41,701,137 | ) | |||||||||||
1,709,641 | (261,058 | ) | (139,762,470 | ) | 42,507,413 | 18,464,958 | (38,343,157 | ) | ||||||||||||||
1,948,843 | 968,276 | (142,859,204 | ) | (123,429,905 | ) | 30,326,259 | (47,323,583 | ) | ||||||||||||||
47,214,624 | 46,246,348 | 1,094,875,595 | 1,218,305,500 | 337,753,247 | 385,076,830 | |||||||||||||||||
$ | 49,163,467 | $ | 47,214,624 | $ | 952,016,391 | $ | 1,094,875,595 | $ | 368,079,506 | $ | 337,753,247 |
39
Statements of Changes in Net Assets – Capital Stock Activity
Touchstone Balanced Fund | Touchstone International Equity Fund | |||||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||||
Six Months Ended | For the | Six Months Ended | For the | |||||||||||||||||||||||||||||
December 31, 2019 | Year Ended | December 31, 2019 | Year Ended | |||||||||||||||||||||||||||||
(Unaudited) | June 30, 2019 | (Unaudited) | June 30, 2019 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 529,964 | $ | 11,892,087 | 1,062,296 | $ | 22,451,293 | 144,510 | $ | 2,235,708 | 557,676 | $ | 8,907,754 | ||||||||||||||||||||
Reinvestment of distributions | 1,254,973 | 26,469,020 | 692,449 | 14,214,633 | 293,580 | 4,631,755 | 906,752 | 13,019,094 | ||||||||||||||||||||||||
Cost of Shares redeemed | (917,010 | ) | (20,640,094 | ) | (1,851,939 | ) | (39,879,250 | ) | (1,243,966 | ) | (19,128,298 | ) | (1,156,806 | ) | (18,660,524 | ) | ||||||||||||||||
Change from Class A Share Transactions | 867,927 | 17,721,013 | (97,194 | ) | (3,213,324 | ) | (805,876 | ) | (12,260,835 | ) | 307,622 | 3,266,324 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 531,251 | 11,927,661 | 260,512 | 5,744,940 | 9,821 | 139,050 | 19,926 | 345,863 | ||||||||||||||||||||||||
Reinvestment of distributions | 174,908 | 3,698,525 | 99,216 | 2,033,028 | 8,823 | 585,937 | 50,627 | 679,647 | ||||||||||||||||||||||||
Cost of Shares redeemed | (240,215 | ) | (5,392,290 | ) | (655,564 | ) | (13,909,549 | ) | (59,588 | ) | (15,382,090 | ) | (205,583 | ) | (2,981,700 | ) | ||||||||||||||||
Change from Class C Share Transactions | 465,944 | 10,233,896 | (295,836 | ) | (6,131,581 | ) | (40,944 | ) | (14,657,103 | ) | (135,030 | ) | (1,956,190 | ) | ||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 564,510 | 12,645,061 | 2,282,410 | 49,201,431 | 184,719 | 2,829,221 | 896,199 | 14,089,717 | ||||||||||||||||||||||||
Reinvestment of distributions | 377,986 | 7,913,441 | 192,346 | 3,917,535 | 129,700 | 128,159 | 408,231 | 5,783,890 | ||||||||||||||||||||||||
Cost of Shares redeemed | (258,154 | ) | (5,724,303 | ) | (1,151,266 | ) | (23,708,006 | ) | (984,410 | ) | (854,822 | ) | (1,778,878 | ) | (28,226,702 | ) | ||||||||||||||||
Change from Class Y Share Transactions | 684,342 | 14,834,199 | 1,323,490 | 29,410,960 | (669,991 | ) | 2,102,558 | (474,448 | ) | (8,353,095 | ) | |||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | — | — | — | — | 867,967 | 13,454,326 | 22,018 | 393,073 | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | 37,466 | 2,019,678 | 22,774 | 322,139 | ||||||||||||||||||||||||
Cost of Shares redeemed | — | — | — | — | (29,974 | ) | (457,907 | ) | (2,829 | ) | (49,727 | ) | ||||||||||||||||||||
Change from Institutional Class Share Transactions | — | — | — | — | 875,459 | 15,016,097 | 41,963 | 665,485 | ||||||||||||||||||||||||
Change from Share Transactions | 2,018,213 | $ | 42,789,108 | 930,460 | $ | 20,066,055 | (641,352 | ) | $ | (9,799,283 | ) | (259,893 | ) | $ | (6,377,476 | ) |
See accompanying Notes to Financial Statements.
40
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
Touchstone International Growth Opportunities Fund | Touchstone International Small Cap Fund | |||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||
Six Months Ended | For the | Six Months Ended | For the | |||||||||||||||||||||||||||
December 31, 2019 | Year Ended | December 31, 2019 | Year Ended | |||||||||||||||||||||||||||
(Unaudited) | June 30, 2019 | (Unaudited) | June 30, 2019 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
8,280 | $ | 179,051 | 16,945 | $ | 375,240 | 7,055 | $ | 104,469 | 43,026 | $ | 688,045 | |||||||||||||||||||
— | — | 5,357 | 96,098 | 2,616 | 40,348 | 19,506 | 263,989 | |||||||||||||||||||||||
(4,587 | ) | (97,196 | ) | (23,131 | ) | (521,732 | ) | (55,891 | ) | (829,923 | ) | (540,066 | ) | (8,195,037 | ) | |||||||||||||||
3,693 | 81,855 | (829 | ) | (50,394 | ) | (46,220 | ) | (685,106 | ) | (477,534 | ) | (7,243,003 | ) | |||||||||||||||||
3,086 | 64,217 | 4,796 | 102,072 | 2,058 | 30,259 | 9,015 | 135,668 | |||||||||||||||||||||||
— | — | 1,323 | 23,263 | 1,348 | 20,275 | 10,792 | 143,043 | |||||||||||||||||||||||
(1,299 | ) | (26,997 | ) | (14,809 | ) | (322,477 | ) | (29,051 | ) | (425,600 | ) | (56,187 | ) | (820,298 | ) | |||||||||||||||
1,787 | 37,220 | (8,690 | ) | (197,142 | ) | (25,645 | ) | (375,066 | ) | (36,380 | ) | (541,587 | ) | |||||||||||||||||
56,085 | 1,222,862 | 103,079 | 2,090,608 | 128,483 | 1,926,095 | 514,728 | 7,770,651 | |||||||||||||||||||||||
— | 18,202 | 327,855 | 131,537 | 2,074,335 | 645,591 | 8,930,258 | ||||||||||||||||||||||||
(68,572 | ) | (1,435,519 | ) | (192,606 | ) | (3,806,371 | ) | (614,046 | ) | (9,430,719 | ) | (2,717,834 | ) | (42,233,109 | ) | |||||||||||||||
(12,487 | ) | (212,657 | ) | (71,325 | ) | (1,387,908 | ) | (354,026 | ) | (5,430,289 | ) | (1,557,515 | ) | (25,532,200 | ) | |||||||||||||||
8,528 | 180,679 | 527,744 | 12,739,115 | 106,237 | 1,616,782 | 1,910,429 | 29,584,745 | |||||||||||||||||||||||
131 | 2,978 | 234,396 | 4,238,825 | 79,609 | 1,263,401 | 764,467 | 10,631,410 | |||||||||||||||||||||||
(58,000 | ) | (1,226,481 | ) | (411,764 | ) | (8,390,370 | ) | (3,158,190 | ) | (47,306,358 | ) | (4,852,742 | ) | (76,290,157 | ) | |||||||||||||||
(49,341 | ) | (1,042,824 | ) | 350,376 | 8,587,570 | (2,972,344 | ) | (44,426,175 | ) | (2,177,846 | ) | (36,074,002 | ) | |||||||||||||||||
(56,348 | ) | $ | (1,136,406 | ) | 269,532 | $ | 6,952,126 | (3,398,235 | ) | $ | (50,916,636 | ) | (4,249,275 | ) | $ | (69,390,792 | ) |
41
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
Touchstone Large Cap Focused Fund | Touchstone Large Cap Fund | |||||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||||
Six Months Ended | For the | Six Months Ended | For the | |||||||||||||||||||||||||||||
December 31, 2019 | Year Ended | December 31, 2019 | Year Ended | |||||||||||||||||||||||||||||
(Unaudited) | June 30, 2019 | (Unaudited) | June 30, 2019 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 552,452 | $ | 24,235,429 | 1,405,226 | $ | 58,296,751 | 28,549 | $ | 409,678 | 131,766 | $ | 1,800,763 | ||||||||||||||||||||
Reinvestment of distributions | 2,871,501 | 120,182,475 | 2,715,786 | 106,532,964 | 13,629 | 193,756 | 1,281 | 15,801 | ||||||||||||||||||||||||
Cost of Shares redeemed | (2,210,898 | ) | (97,380,240 | ) | (4,961,303 | ) | (210,066,892 | ) | (99,727 | ) | (1,423,440 | ) | (69,014 | ) | (944,786 | ) | ||||||||||||||||
Change from Class A Share Transactions | 1,213,055 | 47,037,664 | (840,291 | ) | (45,237,177 | ) | (57,549 | ) | (820,006 | ) | 64,033 | 871,778 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 40,027 | 1,625,366 | 157,729 | 6,280,274 | 13,655 | 195,995 | 114,719 | 1,531,304 | ||||||||||||||||||||||||
Reinvestment of distributions | 117,565 | 4,539,194 | 171,149 | 6,291,421 | 30,317 | 420,803 | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (243,101 | ) | (9,849,500 | ) | (786,837 | ) | (30,193,725 | ) | (41,211 | ) | (578,275 | ) | (184,467 | ) | (2,443,682 | ) | ||||||||||||||||
Change from Class C Share Transactions | (85,509 | ) | (3,684,940 | ) | (457,959 | ) | (17,622,030 | ) | 2,761 | 38,523 | (69,748 | ) | (912,378 | ) | ||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 753,303 | 32,972,750 | 2,348,057 | 98,974,817 | 227,064 | 3,311,478 | 1,044,064 | 13,855,912 | ||||||||||||||||||||||||
Reinvestment of distributions | 993,280 | 41,493,723 | 870,960 | 34,044,871 | 1,020,838 | 14,562,437 | 161,741 | 1,995,885 | ||||||||||||||||||||||||
Cost of Shares redeemed | (2,112,196 | ) | (91,512,291 | ) | (2,685,332 | ) | (114,700,906 | ) | (872,093 | ) | (12,612,208 | ) | (3,524,466 | ) | (47,963,236 | ) | ||||||||||||||||
Change from Class Y Share Transactions | (365,613 | ) | (17,045,818 | ) | 533,685 | 18,318,782 | 375,809 | 5,261,707 | (2,318,661 | ) | (32,111,439 | ) | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 3,641,551 | 158,681,477 | 3,230,674 | 137,634,347 | 1,348,314 | 19,383,171 | 826,367 | 11,434,220 | ||||||||||||||||||||||||
Reinvestment of distributions | 288,925 | 12,103,812 | 198,310 | 7,761,448 | 321,896 | 4,601,323 | 42,766 | 528,158 | ||||||||||||||||||||||||
Cost of Shares redeemed | (3,077,156 | ) | (135,679,701 | ) | (2,176,132 | ) | (90,463,407 | ) | (327,625 | ) | (4,871,549 | ) | (6,046,153 | ) | (82,498,678 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | 853,320 | 35,105,588 | 1,252,852 | 54,932,388 | 1,342,585 | 19,112,945 | (5,177,020 | ) | (70,536,300 | ) | ||||||||||||||||||||||
Change from Share Transactions | 1,615,253 | $ | 61,412,494 | 488,287 | $ | 10,391,963 | 1,663,606 | $ | 23,593,169 | (7,501,396 | ) | $ | (102,688,339 | ) |
See accompanying Notes to Financial Statements.
42
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
Touchstone Large Company Growth Fund | Touchstone Ohio Tax-Free Bond Fund | |||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||
Six Months Ended | For the | Six Months Ended | For the | |||||||||||||||||||||||||||
December 31, 2019 | Year Ended | December 31, 2019 | Year Ended | |||||||||||||||||||||||||||
(Unaudited) | June 30, 2019 | (Unaudited) | June 30, 2019 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
4,463 | $ | 190,884 | 51,395 | $ | 2,152,550 | 30,561 | $ | 356,969 | 290,571 | $ | 3,284,978 | |||||||||||||||||||
2,596 | 108,767 | 2,021 | 73,858 | 29,318 | 343,790 | 64,092 | 728,125 | |||||||||||||||||||||||
(4,040 | ) | (173,341 | ) | (102,561 | ) | (4,230,513 | ) | (241,658 | ) | (2,829,865 | ) | (626,127 | ) | (7,087,256 | ) | |||||||||||||||
3,019 | 126,310 | (49,145 | ) | (2,004,105 | ) | (181,779 | ) | (2,129,106 | ) | (271,464 | ) | (3,074,153 | ) | |||||||||||||||||
569 | 24,573 | 17,107 | 576,349 | 332 | 3,895 | 85,728 | 968,365 | |||||||||||||||||||||||
767 | 31,234 | 337 | 12,084 | 1,737 | 20,397 | 5,682 | 64,504 | |||||||||||||||||||||||
(130 | ) | (5,280 | ) | (13,711 | ) | (512,697 | ) | (39,799 | ) | (465,098 | ) | (328,141 | ) | (3,722,309 | ) | |||||||||||||||
1,206 | 50,527 | 3,733 | 75,736 | (37,730 | ) | (440,806 | ) | (236,731 | ) | (2,689,440 | ) | |||||||||||||||||||
28,558 | 1,245,220 | 177,376 | 7,212,602 | 21,876 | 256,426 | 231,046 | 2,594,686 | |||||||||||||||||||||||
29,287 | 1,238,247 | 22,207 | 816,318 | 1,940 | 22,773 | 8,367 | 94,690 | |||||||||||||||||||||||
(91,235 | ) | (3,813,345 | ) | (126,685 | ) | (5,088,215 | ) | (63,395 | ) | (743,086 | ) | (384,632 | ) | (4,349,670 | ) | |||||||||||||||
(33,390 | ) | (1,329,878 | ) | 72,898 | 2,940,705 | (39,579 | ) | (463,887 | ) | (145,219 | ) | (1,660,294 | ) | |||||||||||||||||
175,556 | 7,561,316 | 762,108 | 30,157,517 | 423,489 | 4,968,718 | 759,782 | 8,629,842 | |||||||||||||||||||||||
310,296 | 13,168,983 | 320,166 | 11,801,332 | 12,919 | 151,583 | 11,514 | 131,506 | |||||||||||||||||||||||
(1,171,139 | ) | (50,902,774 | ) | (1,716,589 | ) | (69,403,126 | ) | (32,063 | ) | (376,861 | ) | (141,067 | ) | (1,598,519 | ) | |||||||||||||||
(685,287 | ) | (30,172,475 | ) | (634,315 | ) | (27,444,277 | ) | 404,345 | 4,743,440 | 630,229 | 7,162,829 | |||||||||||||||||||
(714,452 | ) | $ | (31,325,516 | ) | (606,829 | ) | $ | (26,431,941 | ) | 145,257 | $ | 1,709,641 | (23,185 | ) | $ | (261,058 | ) |
43
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
Touchstone Small Company Fund | Touchstone Value Fund | |||||||||||||||||||||||||||||||
For the | For the | |||||||||||||||||||||||||||||||
Six Months Ended | For the | Six Months Ended | For the | |||||||||||||||||||||||||||||
December 31, 2019 | Year Ended | December 31, 2019 | Year Ended | |||||||||||||||||||||||||||||
(Unaudited) | June 30, 2019 | (Unaudited) | June 30, 2019 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 2,683,013 | $ | 12,654,030 | 16,731,844 | $ | 80,853,774 | 80,237 | $ | 779,463 | 342,319 | $ | 3,126,791 | ||||||||||||||||||||
Proceeds from Shares issued in connection with reorganization(A) | — | — | 3,572,822 | 21,326,954 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 6,439,957 | 30,074,577 | 14,442,575 | 65,858,483 | 183,452 | 1,749,224 | 471,809 | 4,130,251 | ||||||||||||||||||||||||
Cost of Shares redeemed | (14,731,954 | ) | (69,925,431 | ) | (32,140,085 | ) | (163,567,335 | ) | (510,002 | ) | (4,943,901 | ) | (1,036,154 | ) | (9,313,809 | ) | ||||||||||||||||
Change from Class A Share Transactions | (5,608,984 | ) | (27,196,824 | ) | 2,607,156 | 4,471,876 | (246,313 | ) | (2,415,214 | ) | (222,026 | ) | (2,056,767 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 356,086 | 870,486 | 1,559,656 | 4,910,361 | 48,080 | 464,104 | 181,399 | 1,683,899 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with reorganization(A) | — | — | 1,917,820 | 6,665,795 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 1,402,573 | 3,211,891 | 7,546,781 | 18,036,807 | 16,811 | 159,484 | 38,060 | 330,556 | ||||||||||||||||||||||||
Cost of Shares redeemed | (4,813,104 | ) | (11,754,901 | ) | (25,485,447 | ) | (64,901,221 | ) | (28,997 | ) | (273,510 | ) | (250,222 | ) | (2,284,487 | ) | ||||||||||||||||
Change from Class C Share Transactions | (3,054,445 | ) | (7,672,524 | ) | (14,461,190 | ) | (35,288,258 | ) | 35,894 | 350,078 | (30,763 | ) | (270,032 | ) | ||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 3,482,856 | 18,382,933 | 16,511,884 | 94,236,360 | 1,020,610 | 9,962,443 | 2,222,254 | 20,763,333 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with reorganization(A) | — | — | 11,284,528 | 73,494,700 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 2,704,570 | 14,036,717 | 7,860,688 | 39,597,755 | 523,891 | 5,023,735 | 1,206,086 | 10,617,220 | ||||||||||||||||||||||||
Cost of Shares redeemed | (15,780,817 | ) | (83,319,141 | ) | (37,969,485 | ) | (216,189,336 | ) | (1,856,586 | ) | (18,158,770 | ) | (1,823,552 | ) | (16,924,844 | ) | ||||||||||||||||
Change from Class Y Share Transactions | (9,593,391 | ) | (50,899,491 | ) | (2,312,385 | ) | (8,860,521 | ) | (312,085 | ) | (3,172,592 | ) | 1,604,788 | 14,455,709 | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,459,450 | 7,675,075 | 609,671 | 3,527,675 | 2,782,549 | 26,811,696 | 3,608,349 | 34,039,839 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with reorganization(A) | — | — | 556,531 | 3,625,412 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 91,153 | 472,170 | 17,201 | 86,450 | 1,338,833 | 12,798,816 | 2,943,095 | 25,920,663 | ||||||||||||||||||||||||
Cost of Shares redeemed | (217,440 | ) | (1,156,777 | ) | (768,175 | ) | (4,851,081 | ) | (1,640,116 | ) | (15,907,826 | ) | (10,819,317 | ) | (110,432,569 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | 1,333,163 | 6,990,468 | 415,228 | 2,388,456 | 2,481,266 | 23,702,686 | (4,267,873 | ) | (50,472,067 | ) | ||||||||||||||||||||||
Class R6 | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 2,060,930 | 10,040,208 | 21,896,944 | 120,345,208 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 862,270 | 4,147,518 | 1,780,528 | 8,323,538 | — | — | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (15,237,505 | ) | (75,171,825 | ) | (9,403,473 | ) | (48,872,886 | ) | — | — | — | — | ||||||||||||||||||||
Change from Class R6 Share Transactions | (12,314,305 | ) | (60,984,099 | ) | 14,273,999 | 79,795,860 | — | — | — | — | ||||||||||||||||||||||
Change from Share Transactions | (29,237,962 | ) | $ | (139,762,470 | ) | 522,808 | $ | 42,507,413 | 1,958,762 | $ | 18,464,958 | (2,915,874 | ) | $ | (38,343,157 | ) |
(A)See Note 9 in Notes to Financial Statements.
See accompanying Notes to Financial Statements.
44
Touchstone Balanced Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 22.18 | $ | 21.54 | $ | 22.40 | $ | 19.68 | $ | 19.87 | $ | 20.98 | $ | 20.23 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.14 | 0.32 | 0.16 | 0.21 | 0.23 | (B) | 0.43 | (B) | 0.26 | (B) | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.55 | 1.73 | 0.22 | 2.89 | 0.66 | (0.35 | ) | 1.50 | ||||||||||||||||||||
Total from investment operations | 1.69 | 2.05 | 0.38 | 3.10 | 0.89 | 0.08 | 1.76 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.34 | ) | (0.18 | ) | (0.25 | ) | (0.44 | ) | (0.30 | ) | (0.26 | ) | ||||||||||||||
Realized capital gains | (2.41 | ) | (1.07 | ) | (1.06 | ) | (0.13 | ) | (0.64 | ) | (0.89 | ) | (0.75 | ) | ||||||||||||||
Total distributions | (2.56 | ) | (1.41 | ) | (1.24 | ) | (0.38 | ) | (1.08 | ) | (1.19 | ) | (1.01 | ) | ||||||||||||||
Net asset value at end of period | $ | 21.31 | $ | 22.18 | $ | 21.54 | $ | 22.40 | $ | 19.68 | $ | 19.87 | $ | 20.98 | ||||||||||||||
Total return(C) | 7.86 | %(D) | 10.13 | % | 1.72 | %(D) | 15.95 | % | 4.75 | % | 0.56 | % | 9.10 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 253,027 | $ | 244,037 | $ | 239,056 | $ | 258,279 | $ | 264,910 | $ | 263,276 | $ | 278,385 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.01 | %(E) | 1.01 | % | 1.01 | %(E) | 1.03 | % | 1.01 | % | 1.04 | % | 1.07 | % | ||||||||||||||
Gross expenses | 1.09 | %(E) | 1.09 | % | 1.07 | %(E) | 1.04 | % | 1.01 | % | 1.04 | % | 1.07 | % | ||||||||||||||
Net investment income | 1.31 | %(E) | 1.49 | % | 1.24 | %(E) | 0.99 | % | 1.20 | % | 2.17 | %(F) | 1.29 | % | ||||||||||||||
Portfolio turnover rate | 86 | %(D) | 81 | % | 119 | %(D) | 46 | % | 45 | % | 86 | % | 94 | % |
Touchstone Balanced Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 22.29 | $ | 21.63 | $ | 22.46 | $ | 19.73 | $ | 19.93 | $ | 21.04 | $ | 20.27 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.07 | 0.15 | 0.06 | 0.04 | 0.08 | (B) | 0.28 | (B) | 0.11 | (B) | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.55 | 1.75 | 0.22 | 2.91 | 0.66 | (0.35 | ) | 1.51 | ||||||||||||||||||||
Total from investment operations | 1.62 | 1.90 | 0.28 | 2.95 | 0.74 | (0.07 | ) | 1.62 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.17 | ) | (0.05 | ) | (0.09 | ) | (0.30 | ) | (0.15 | ) | (0.10 | ) | ||||||||||||||
Realized capital gains | (2.41 | ) | (1.07 | ) | (1.06 | ) | (0.13 | ) | (0.64 | ) | (0.89 | ) | (0.75 | ) | ||||||||||||||
Total distributions | (2.49 | ) | (1.24 | ) | (1.11 | ) | (0.22 | ) | (0.94 | ) | (1.04 | ) | (0.85 | ) | ||||||||||||||
Net asset value at end of period | $ | 21.42 | $ | 22.29 | $ | 21.63 | $ | 22.46 | $ | 19.73 | $ | 19.93 | $ | 21.04 | ||||||||||||||
Total return(C) | 7.45 | %(D) | 9.33 | % | 1.25 | %(D) | 15.09 | % | 3.91 | % | (0.23 | %) | 8.34 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 43,026 | $ | 34,380 | $ | 39,769 | $ | 42,800 | $ | 43,066 | $ | 35,344 | $ | 32,002 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.78 | %(E) | 1.78 | % | 1.78 | %(E) | 1.79 | % | 1.78 | % | 1.82 | % | 1.82 | % | ||||||||||||||
Gross expenses | 1.87 | %(E) | 1.89 | % | 1.86 | %(E) | 1.81 | % | 1.78 | % | 1.82 | % | 1.82 | % | ||||||||||||||
Net investment income | 0.54 | %(E) | 0.72 | % | 0.47 | %(E) | 0.23 | % | 0.43 | % | 1.39 | %(F) | 0.53 | % | ||||||||||||||
Portfolio turnover rate | 86 | %(D) | 81 | % | 119 | %(D) | 46 | % | 45 | % | 86 | % | 94 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | The net investment income per share was based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class A and Class C shares by 0.86% for the fiscal year ended November 30, 2015. |
See accompanying Notes to Financial Statements.
45
Financial Highlights(Continued)
Touchstone Balanced Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended June 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(B) | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 22.01 | $ | 21.39 | $ | 22.26 | $ | 19.57 | $ | 19.78 | $ | 20.90 | $ | 20.15 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.17 | 0.35 | 0.19 | 0.28 | 0.27 | (C) | 0.47 | (C) | 0.31 | (C) | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.55 | 1.72 | 0.22 | 2.84 | 0.65 | (0.34 | ) | 1.50 | ||||||||||||||||||||
Total from investment operations | 1.72 | 2.07 | 0.41 | 3.12 | 0.92 | 0.13 | 1.81 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.18 | ) | (0.38 | ) | (0.22 | ) | (0.30 | ) | (0.49 | ) | (0.36 | ) | (0.31 | ) | ||||||||||||||
Realized capital gains | (2.41 | ) | (1.07 | ) | (1.06 | ) | (0.13 | ) | (0.64 | ) | (0.89 | ) | (0.75 | ) | ||||||||||||||
Total distributions | (2.59 | ) | (1.45 | ) | (1.28 | ) | (0.43 | ) | (1.13 | ) | (1.25 | ) | (1.06 | ) | ||||||||||||||
Net asset value at end of period | $ | 21.14 | $ | 22.01 | $ | 21.39 | $ | 22.26 | $ | 19.57 | $ | 19.78 | $ | 20.90 | ||||||||||||||
Total return | 8.03 | %(D) | 10.33 | % | 1.86 | %(D) | 16.20 | % | 4.94 | % | 0.79 | % | 9.43 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 72,690 | $ | 60,638 | $ | 30,612 | $ | 31,215 | $ | 14,477 | $ | 12,589 | $ | 17,062 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 0.81 | %(E) | 0.81 | % | 0.81 | %(E) | 0.78 | % | 0.81 | % | 0.81 | % | 0.80 | % | ||||||||||||||
Gross expenses | 0.87 | %(E) | 0.88 | % | 0.90 | %(E) | 0.80 | % | 0.81 | % | 0.81 | % | 0.80 | % | ||||||||||||||
Net investment income | 1.51 | %(E) | 1.69 | % | 1.44 | %(E) | 1.25 | % | 1.41 | % | 2.39 | %(F) | 1.55 | % | ||||||||||||||
Portfolio turnover rate | 86 | %(D) | 81 | % | 119 | %(D) | 46 | % | 45 | % | 86 | % | 94 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | Effective October 28, 2017, Class I shares of the Sentinel Balanced Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund. |
(C) | The net investment income per share was based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class Y shares by 0.86% for the fiscal year ended November 30, 2015. |
See accompanying Notes to Financial Statements.
46
Financial Highlights(Continued)
Touchstone International Equity Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended December 31, | Year Ended | Seven Months Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 15.65 | $ | 18.15 | $ | 19.64 | $ | 15.52 | $ | 16.92 | $ | 19.61 | $ | 20.18 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (— | )(B)(C) | 0.20 | (B) | 0.36 | (D) | 0.17 | 0.18 | (B) | 0.13 | (B) | 0.25 | (B) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.23 | (0.57 | ) | (0.94 | ) | 4.05 | (0.97 | ) | 0.47 | (0.61 | ) | |||||||||||||||||
Total from investment operations | 1.23 | (0.37 | ) | (0.58 | ) | 4.22 | (0.79 | ) | 0.60 | (0.36 | ) | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.26 | ) | (0.21 | ) | (0.10 | ) | (0.12 | ) | (0.34 | ) | (0.21 | ) | ||||||||||||||
Realized capital gains | (0.63 | ) | (1.87 | ) | (0.70 | ) | — | (0.49 | ) | (2.95 | ) | — | ||||||||||||||||
Total distributions | (0.82 | ) | (2.13 | ) | (0.91 | ) | (0.10 | ) | (0.61 | ) | (3.29 | ) | (0.21 | ) | ||||||||||||||
Net asset value at end of period | $ | 16.06 | $ | 15.65 | $ | 18.15 | $ | 19.64 | $ | 15.52 | $ | 16.92 | $ | 19.61 | ||||||||||||||
Total return(E) | 8.05 | %(F) | (0.78 | %) | (3.23 | %)(F) | 27.39 | % | (4.81 | %) | 4.49 | % | (1.81 | %) | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 96,739 | $ | 106,870 | $ | 118,391 | $ | 129,139 | $ | 114,616 | $ | 113,212 | $ | 115,216 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.30 | %(G) | 1.30 | % | 1.23 | %(G) | 1.37 | % | 1.36 | % | 1.41 | % | 1.41 | % | ||||||||||||||
Gross expenses | 1.41 | %(G) | 1.37 | % | 1.30 | %(G) | 1.39 | % | 1.36 | % | 1.41 | % | 1.41 | % | ||||||||||||||
Net investment income (loss) | (0.01 | %)(G) | 1.26 | % | 3.22 | %(D)(G) | 0.92 | % | 1.11 | % | 0.76 | % | 1.22 | % | ||||||||||||||
Portfolio turnover rate | 26 | %(F) | 43 | % | 26 | %(F) | 37 | % | 36 | % | 55 | % | 50 | % |
Touchstone International Equity Fund— Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 14.64 | $ | 17.12 | $ | 18.46 | $ | 14.66 | $ | 16.06 | $ | 18.71 | $ | 19.34 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.09 | )(B) | 0.03 | (B) | 0.26 | (D) | (0.06 | ) | (0.01 | )(B) | (0.10 | )(B) | (0.04 | )(B) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.15 | (0.54 | ) | (0.90 | ) | 3.86 | (0.90 | ) | 0.47 | (0.59 | ) | |||||||||||||||||
Total from investment operations | 1.06 | (0.51 | ) | (0.64 | ) | 3.80 | (0.91 | ) | 0.37 | (0.63 | ) | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | (0.10 | ) | — | — | — | (0.07 | ) | — | |||||||||||||||||||
Realized capital gains | (0.63 | ) | (1.87 | ) | (0.70 | ) | — | (0.49 | ) | (2.95 | ) | — | ||||||||||||||||
Total distributions | (0.63 | ) | (1.97 | ) | (0.70 | ) | — | (0.49 | ) | (3.02 | ) | — | ||||||||||||||||
Net asset value at end of period | $ | 15.07 | $ | 14.64 | $ | 17.12 | $ | 18.46 | $ | 14.66 | $ | 16.06 | $ | 18.71 | ||||||||||||||
Total return(E) | 7.42 | %(F) | (1.87 | %) | (3.72 | %)(F) | 25.92 | % | (5.82 | %) | 3.14 | % | (3.26 | %) | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 3,277 | $ | 3,783 | $ | 6,737 | $ | 6,924 | $ | 5,876 | $ | 4,732 | $ | 3,581 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 2.49 | %(G) | 2.34 | % | 2.18 | %(G) | 2.45 | % | 2.49 | % | 2.70 | % | 2.86 | % | ||||||||||||||
Gross expenses | 2.62 | %(G) | 2.42 | % | 2.25 | %(G) | 2.49 | % | 2.49 | % | 2.70 | % | 2.86 | % | ||||||||||||||
Net investment income (loss) | (1.20 | %)(G) | 0.21 | % | 2.27 | %(D)(G) | (0.16 | %) | (0.04 | %) | (0.60 | %) | (0.23 | %) | ||||||||||||||
Portfolio turnover rate | 26 | %(F) | 43 | % | 26 | %(F) | 37 | % | 36 | % | 55 | % | 50 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Reflects the impact of a special dividend that resulted in a one-time increase to net investment income. If the special dividend had not occurred, the ratio of net investment income to average net assets would have been lower by 1.54% for Class A and Class C shares and the net investment income per share would have been lower by $0.17 and $0.16 for Class A and Class C shares, respectively. |
(E) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(F) | Not annualized. |
(G) | Annualized. |
See accompanying Notes to Financial Statements.
47
Financial Highlights(Continued)
Touchstone International Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(B) | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 15.44 | $ | 17.93 | $ | 19.45 | $ | 15.40 | $ | 16.79 | $ | 19.53 | $ | 20.13 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.02 | (C) | 0.25 | (C) | 0.40 | (D) | 0.25 | 0.23 | (C) | 0.18 | (C) | 0.38 | (C) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.22 | (0.57 | ) | (0.93 | ) | 3.98 | (0.95 | ) | 0.47 | (0.65 | ) | |||||||||||||||||
Total from investment operations | 1.24 | (0.32 | ) | (0.53 | ) | 4.23 | (0.72 | ) | 0.65 | (0.27 | ) | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.30 | ) | (0.29 | ) | (0.18 | ) | (0.18 | ) | (0.44 | ) | (0.33 | ) | ||||||||||||||
Realized capital gains | (0.63 | ) | (1.87 | ) | (0.70 | ) | — | (0.49 | ) | (2.95 | ) | — | ||||||||||||||||
Total distributions | (0.87 | ) | (2.17 | ) | (0.99 | ) | (0.18 | ) | (0.67 | ) | (3.39 | ) | (0.33 | ) | ||||||||||||||
Net asset value at end of period | $ | 15.81 | $ | 15.44 | $ | 17.93 | $ | 19.45 | $ | 15.40 | $ | 16.79 | $ | 19.53 | ||||||||||||||
Total return | 8.21 | %(E) | (0.47 | %) | (3.05 | %)(E) | 27.78 | % | (4.41 | %) | 4.89 | % | (1.39 | %) | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 32,549 | $ | 42,120 | $ | 57,438 | $ | 63,320 | $ | 40,528 | $ | 14,967 | $ | 10,997 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 0.99 | %(F) | 0.99 | % | 0.99 | %(F) | 1.01 | % | 0.99 | % | 1.02 | % | 0.92 | % | ||||||||||||||
Gross expenses | 1.16 | %(F) | 1.12 | % | 1.09 | %(F) | 1.03 | % | 0.99 | % | 1.02 | % | 0.92 | % | ||||||||||||||
Net investment income | 0.30 | %(F) | 1.57 | % | 3.47 | %(D)(F) | 1.28 | % | 1.45 | % | 1.05 | % | 1.91 | % | ||||||||||||||
Portfolio turnover rate | 26 | %(E) | 43 | % | 26 | %(E) | 37 | % | 36 | % | 55 | % | 50 | % |
Touchstone International Equity Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||
December 31, | Ended | Ended | Period Ended | |||||||||||||
2019 | June 30, | June 30, | November 30, | |||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(G) | |||||||||||||
Net asset value at beginning of period | $ | 15.42 | $ | 17.92 | $ | 19.46 | $ | 18.91 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.03 | (C) | 0.26 | (C) | 0.56 | (D) | 0.02 | |||||||||
Net realized and unrealized gains (losses) on investments | 1.22 | (0.57 | ) | (1.09 | ) | 0.53 | ||||||||||
Total from investment operations | 1.25 | (0.31 | ) | (0.53 | ) | 0.55 | ||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.27 | ) | (0.32 | ) | (0.31 | ) | — | |||||||||
Realized capital gains | (0.63 | ) | (1.87 | ) | (0.70 | ) | — | |||||||||
Total distributions | (0.90 | ) | (2.19 | ) | (1.01 | ) | — | |||||||||
Net asset value at end of period | $ | 15.77 | $ | 15.42 | $ | 17.92 | $ | 19.46 | ||||||||
Total return | 8.25 | %(E) | (0.39 | %) | (3.02 | %)(E) | 2.91 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 16,461 | $ | 2,592 | $ | 2,260 | $ | 3 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.89 | %(F) | 0.89 | % | 0.89 | %(F) | 0.89 | %(F) | ||||||||
Gross expenses | 1.14 | %(F) | 1.38 | % | 1.63 | %(F) | 1921.18 | %(F) | ||||||||
Net investment income | 0.40 | %(F) | 1.67 | % | 3.57 | %(D)(F) | 1.40 | %(F) | ||||||||
Portfolio turnover rate | 26 | %(E) | 43 | % | 26 | %(E) | 37 | %(E) |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | Effective October 28, 2017, Class I shares of the Sentinel Balanced Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund. |
(C) | The net investment income per share was based on average shares outstanding for the period. |
(D) | Reflects the impact of a special dividend that resulted in a one-time increase to net investment income. If the special dividend had not occurred, the ratio of net investment income to average net assets would have been lower by 1.54% for Class Y and Institutional Class shares and the net investment income per share would have been lower by $0.17 and $0.16 for Class Y and Institutional Class shares, respectively . |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Represents the period from commencement of operations (October 30, 2017) through November 30, 2017. |
See accompanying Notes to Financial Statements.
48
Financial Highlights(Continued)
Touchstone International Growth Opportunities Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 21.29 | $ | 25.12 | $ | 22.25 | $ | 18.74 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.03 | )(C) | (0.07 | )(C) | (0.01 | ) | (0.01 | ) | ||||||||
Net realized and unrealized gains (losses) on investments | 1.19 | (0.91 | ) | 3.34 | 3.52 | |||||||||||
Total from investment operations | 1.16 | (0.98 | ) | 3.33 | 3.51 | |||||||||||
Distributions from: | ||||||||||||||||
Realized capital gains | — | (2.85 | ) | (0.46 | ) | — | ||||||||||
Net asset value at end of period | $ | 22.45 | $ | 21.29 | $ | 25.12 | $ | 22.25 | ||||||||
Total return(D) | 5.45 | %(E) | (1.78 | %) | 15.00 | % | 18.73 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 885 | $ | 760 | $ | 918 | $ | 140 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.24 | %(F) | 1.24 | % | 1.36 | % | 1.41 | %(F) | ||||||||
Gross expenses | 3.71 | %(F) | 4.36 | % | 3.75 | % | 42.93 | %(F) | ||||||||
Net investment loss | (0.27 | %)(F) | (0.31 | %) | (0.05 | %) | (0.35 | %)(F) | ||||||||
Portfolio turnover rate | 39 | %(E) | 103 | % | 109 | % | 72 | %(G) |
Touchstone International Growth Opportunities Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 20.77 | $ | 24.76 | $ | 22.10 | $ | 18.74 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.11 | )(C) | (0.23 | )(C) | (0.11 | ) | (0.19 | ) | ||||||||
Net realized and unrealized gains (losses) on investments | 1.16 | (0.91 | ) | 3.23 | 3.55 | |||||||||||
Total from investment operations | 1.05 | (1.14 | ) | 3.12 | 3.36 | |||||||||||
Distributions from: | ||||||||||||||||
Realized capital gains | — | (2.85 | ) | (0.46 | ) | — | ||||||||||
Net asset value at end of period | $ | 21.82 | $ | 20.77 | $ | 24.76 | $ | 22.10 | ||||||||
Total return(D) | 5.06 | %(E) | (2.52 | %) | 14.14 | % | 17.93 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 234 | $ | 185 | $ | 436 | $ | 3 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.99 | %(F) | 1.99 | % | 2.10 | % | 2.16 | %(F) | ||||||||
Gross expenses | 5.97 | %(F) | 6.35 | % | 5.06 | % | 237.46 | %(F) | ||||||||
Net investment loss | (1.02 | %)(F) | (1.06 | %) | (0.79 | %) | (1.11 | %)(F) | ||||||||
Portfolio turnover rate | 39 | %(E) | 103 | % | 109 | % | 72 | %(G) |
(A) | Represents the period from commencement of operations (August 15, 2016) through June 30, 2017. |
(B) | Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016. |
(C) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(D) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the DSM Global Growth & Income Fund merger on August 15, 2016. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
49
Financial Highlights(Continued)
Touchstone International Growth Opportunities Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 21.39 | $ | 25.19 | $ | 22.25 | $ | 18.74 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | (— | )(C)(D) | (0.01 | )(D) | 0.02 | (— | )(C) | |||||||||
Net realized and unrealized gains (losses) on investments | 1.20 | (0.92 | ) | 3.38 | 3.51 | |||||||||||
Total from investment operations | 1.20 | (0.93 | ) | 3.40 | 3.51 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | (0.02 | ) | — | — | |||||||||||
Realized capital gains | — | (2.85 | ) | (0.46 | ) | — | ||||||||||
Total distributions | — | (2.87 | ) | (0.46 | ) | — | ||||||||||
Net asset value at end of period | $ | 22.59 | $ | 21.39 | $ | 25.19 | $ | 22.25 | ||||||||
Total return | 5.56 | %(E) | (1.53 | %) | 15.32 | % | 18.73 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 2,190 | $ | 2,341 | $ | 4,553 | $ | 161 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.99 | %(F) | 0.99 | % | 1.03 | % | 1.16 | %(F) | ||||||||
Gross expenses | 2.22 | %(F) | 1.89 | % | 1.81 | % | 51.68 | %(F) | ||||||||
Net investment income (loss) | (0.02 | %)(F) | (0.06 | %) | 0.28 | % | (0.10 | %)(F) | ||||||||
Portfolio turnover rate | 39 | %(E) | 103 | % | 109 | % | 72 | %(G) |
(A) | Represents the period from commencement of operations (August 15, 2016) through June 30, 2017. |
(B) | Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016. |
(C) | Less than $0.005 per share. |
(D) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the DSM Global Growth & Income Fund merger on August 15, 2016. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
50
Financial Highlights (Continued)
Touchstone International Growth Opportunities Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 21.46 | $ | 25.27 | $ | 22.30 | $ | 17.60 | $ | 19.75 | $ | 20.26 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.01 | (A) | 0.01 | (A) | 0.07 | (0.02 | ) | (0.04 | )(A) | (0.02 | )(A) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 1.21 | (0.93 | ) | 3.36 | 5.15 | (0.73 | ) | 1.56 | ||||||||||||||||
Total from investment operations | 1.22 | (0.92 | ) | 3.43 | 5.13 | (0.77 | ) | 1.54 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (— | )(B) | (0.04 | ) | — | — | — | (0.06 | ) | |||||||||||||||
Realized capital gain | — | (2.85 | ) | (0.46 | ) | (0.43 | ) | (1.38 | ) | (1.99 | ) | |||||||||||||
Total distributions | — | (2.89 | ) | (0.46 | ) | (0.43 | ) | (1.38 | ) | (2.05 | ) | |||||||||||||
Net asset value at end of period | $ | 22.68 | $ | 21.46 | $ | 25.27 | $ | 22.30 | $ | 17.60 | $ | 19.75 | ||||||||||||
Total return | 5.69 | %(C) | (1.46 | %) | 15.42 | % | 29.63 | % | (4.06 | %) | 8.52 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 32,095 | $ | 31,435 | $ | 28,159 | $ | 23,956 | $ | 6,418 | $ | 6,040 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.89 | %(D) | 0.89 | % | 1.02 | % | 1.06 | % | 1.15 | %(E) | 1.20 | % | ||||||||||||
Gross expenses | 1.33 | %(D) | 1.30 | % | 1.31 | % | 1.82 | % | 4.12 | % | 4.54 | % | ||||||||||||
Net investment income (loss) | 0.08 | %(D) | 0.04 | % | 0.28 | % | (0.14 | %) | (0.23 | %) | (0.10 | %) | ||||||||||||
Portfolio turnover rate | 39 | %(C) | 103 | % | 109 | % | 72 | %(F) | 57 | % | 91 | % |
(A) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(B) | Less than $0.005 per share. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Expense cap was lowered to 1.10% from 1.20% on January 1, 2016. |
(F) | Portfolio turnover excludes the purchases and sales of the DSM Global Growth & Income Fund merger on August 15, 2016. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
51
Financial Highlights (Continued)
Touchstone International Small Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.11 | $ | 17.89 | $ | 16.78 | $ | 14.98 | $ | 16.52 | $ | 15.48 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.02 | )(A) | 0.85 | 0.18 | 0.10 | 0.09 | 0.11 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.62 | (2.35 | ) | 1.32 | 1.84 | (1.53 | ) | 1.00 | ||||||||||||||||
Total from investment operations | 0.60 | (1.50 | ) | 1.50 | 1.94 | (1.44 | ) | 1.11 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.35 | ) | (0.18 | ) | (0.39 | ) | (0.14 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||
Realized capital gains | — | (1.10 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.35 | ) | (1.28 | ) | — | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 15.36 | $ | 15.11 | $ | 17.89 | $ | 16.78 | $ | 14.98 | $ | 16.52 | ||||||||||||
Total return(B) | 3.93 | %(C) | (7.42 | %) | 8.85 | % | 13.13 | % | (8.77 | %) | 7.29 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 2,024 | $ | 2,688 | $ | 11,727 | $ | 16,529 | $ | 23,095 | $ | 24,635 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(D) | 1.56 | %(E) | 1.55 | % | 1.55 | % | 1.55 | % | 1.55 | % | 1.55 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(F) | 2.70 | %(E) | 2.00 | % | 1.74 | % | 1.71 | % | 1.66 | % | 1.84 | % | ||||||||||||
Net investment income (loss) | (0.25 | %)(E) | 0.70 | % | 0.51 | % | 0.56 | % | 0.59 | % | 0.90 | % | ||||||||||||
Portfolio turnover rate | 50 | %(C) | 91 | % | 94 | % | 89 | % | 90 | % | 84 | % |
Touchstone International Small Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.74 | $ | 17.58 | $ | 16.47 | $ | 14.67 | $ | 16.28 | $ | 15.33 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.07 | )(A) | (0.10 | ) | (0.11 | ) | (0.12 | ) | (0.04 | ) | 0.06 | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.60 | (1.49 | ) | 1.44 | 1.92 | (1.49 | ) | 0.92 | ||||||||||||||||
Total from investment operations | 0.53 | (1.59 | ) | 1.33 | 1.80 | (1.53 | ) | 0.98 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.15 | ) | (0.22 | ) | — | (0.08 | ) | (0.03 | ) | |||||||||||||
Realized capital gains | — | (1.10 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.28 | ) | (1.25 | ) | — | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 14.99 | $ | 14.74 | $ | 17.58 | $ | 16.47 | $ | 14.67 | $ | 16.28 | ||||||||||||
Total return(B) | 3.62 | %(C) | (8.11 | %) | 8.04 | % | 12.27 | % | (9.43 | %) | 6.44 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 1,200 | $ | 1,559 | $ | 2,498 | $ | 2,818 | $ | 4,294 | $ | 4,120 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(D) | 2.31 | %(E) | 2.30 | % | 2.30 | % | 2.30 | % | 2.30 | % | 2.30 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(F) | 3.48 | %(E) | 3.10 | % | 2.81 | % | 2.73 | % | 2.62 | % | 2.92 | % | ||||||||||||
Net investment income (loss) | (1.00 | %)(E) | (0.05 | %) | (0.25 | %) | (0.19 | %) | (0.16 | %) | 0.15 | % | ||||||||||||
Portfolio turnover rate | 50 | %(C) | 91 | % | 94 | % | 89 | % | 90 | % | 84 | % |
(A) | The net investment loss per share was based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding liquidity provider expenses was for Class A was 1.55% and for Class C was 2.30% for the six months ended December 31, 2019. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding liquidity provider expenses for Class A was 2.69% and for Class C was 3.47% for the six months ended December 31, 2019. |
See accompanying Notes to Financial Statements.
52
Financial Highlights (Continued)
Touchstone International Small Cap Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.45 | $ | 18.28 | $ | 17.21 | $ | 15.39 | $ | 16.94 | $ | 15.86 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | — | (A)(B) | 0.14 | 0.13 | 0.17 | 0.13 | 0.14 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.64 | (1.64 | ) | 1.46 | 1.85 | (1.57 | ) | 1.04 | ||||||||||||||||
Total from investment operations | 0.64 | (1.50 | ) | 1.59 | 2.02 | (1.44 | ) | 1.18 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.23 | ) | (0.52 | ) | (0.20 | ) | (0.11 | ) | (0.10 | ) | ||||||||||||
Realized capital gains | — | (1.10 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.37 | ) | (1.33 | ) | — | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 15.72 | $ | 15.45 | $ | 18.28 | $ | 17.21 | $ | 15.39 | $ | 16.94 | ||||||||||||
Total return | 4.12 | %(C) | (7.17 | %) | 9.17 | % | 13.39 | % | (8.56 | %) | 7.54 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 93,938 | $ | 97,799 | $ | 144,173 | $ | 146,744 | $ | 166,801 | $ | 172,477 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(D) | 1.31 | %(E) | 1.30 | % | 1.30 | %(F) | 1.30 | % | 1.30 | % | 1.30 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(G) | 1.42 | %(E) | 1.33 | % | 1.30 | % | 1.32 | % | 1.32 | % | 1.38 | % | ||||||||||||
Net investment income | 0.00 | %(A)(E) | 0.95 | % | 0.75 | % | 0.81 | % | 0.84 | % | 1.15 | % | ||||||||||||
Portfolio turnover rate | 50 | %(C) | 91 | % | 94 | % | 89 | % | 90 | % | 84 | % |
Touchstone International Small Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.54 | $ | 18.37 | $ | 17.31 | $ | 15.48 | $ | 17.02 | $ | 15.94 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.01 | (B) | 0.04 | 0.12 | 0.16 | 0.12 | 0.18 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.64 | (1.53 | ) | 1.50 | 1.90 | (1.55 | ) | 1.02 | ||||||||||||||||
Total from investment operations | 0.65 | (1.49 | ) | 1.62 | 2.06 | (1.43 | ) | 1.20 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.38 | ) | (0.24 | ) | (0.56 | ) | (0.23 | ) | (0.11 | ) | (0.12 | ) | ||||||||||||
Realized capital gains | — | (1.10 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.38 | ) | (1.34 | ) | — | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 15.81 | $ | 15.54 | $ | 18.37 | $ | 17.31 | $ | 15.48 | $ | 17.02 | ||||||||||||
Total return | 4.16 | %(C) | (7.11 | %) | 9.25 | % | 13.56 | % | (8.43 | %) | 7.65 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 54,140 | $ | 99,402 | $ | 157,502 | $ | 148,937 | $ | 197,693 | $ | 47,319 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(D) | 1.19 | %(E) | 1.18 | % | 1.18 | % | 1.18 | % | 1.18 | % | 1.18 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(G) | 1.35 | %(E) | 1.26 | % | 1.22 | % | 1.23 | % | 1.23 | % | 1.30 | % | ||||||||||||
Net investment income | 0.12 | %(E) | 1.07 | % | 0.87 | % | 0.93 | % | 0.96 | % | 1.27 | % | ||||||||||||
Portfolio turnover rate | 50 | %(C) | 91 | % | 94 | % | 89 | % | 90 | % | 84 | % |
(A) | Less than $0.005 per share or 0.005%. |
(B) | The net investment loss per share was based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding liquidity provider expenses was for Class Y was 1.30% and for Institutional Class was 1.18% for the six months ended December 31, 2019. |
(E) | Annualized. |
(F) | Net expenses include amounts recouped by the Advisor. |
(G) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was for Class Y was 1.41% and for Institutional Class was 1.34% for the six months ended December 31, 2019. |
See accompanying Notes to Financial Statements.
53
Financial Highlights (Continued)
Touchstone Large Cap Focused Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 43.37 | $ | 43.80 | $ | 48.75 | $ | 42.28 | $ | 43.08 | $ | 42.79 | $ | 43.31 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.13 | (B) | 0.38 | (B) | 0.23 | 0.45 | 0.53 | (B) | 1.01 | (B) | 0.56 | (B) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 4.39 | 3.72 | 1.85 | 8.99 | 2.43 | (0.25 | ) | 4.97 | ||||||||||||||||||||
Total from investment operations | 4.52 | 4.10 | 2.08 | 9.44 | 2.96 | 0.76 | 5.53 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.27 | ) | (0.27 | ) | (0.07 | ) | (0.51 | ) | (1.08 | ) | (0.45 | ) | (0.58 | ) | ||||||||||||||
Realized capital gains | (4.85 | ) | (4.26 | ) | (6.96 | ) | (2.46 | ) | (2.68 | ) | (0.02 | ) | (5.47 | ) | ||||||||||||||
Total distributions | (5.12 | ) | (4.53 | ) | (7.03 | ) | (2.97 | ) | (3.76 | ) | (0.47 | ) | (6.05 | ) | ||||||||||||||
Net asset value at end of period | $ | 42.77 | $ | 43.37 | $ | 43.80 | $ | 48.75 | $ | 42.28 | $ | 43.08 | $ | 42.79 | ||||||||||||||
Total return(C) | 10.76 | %(D) | 10.51 | % | 4.74 | %(D) | 23.67 | % | 7.53 | % | 1.79 | % | 13.30 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 1,206,106 | $ | 1,170,490 | $ | 1,218,721 | $ | 1,321,506 | $ | 1,350,861 | $ | 1,416,147 | $ | 1,577,546 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(E) | 1.00 | %(F) | 0.97 | % | 0.97 | %(F) | 1.02 | % | 1.00 | % | 0.99 | % | 1.00 | % | ||||||||||||||
Gross expenses (including liquidity provider expenses)(G) | 1.11 | %(F) | 1.09 | % | 1.09 | %(F) | 1.02 | % | 1.00 | % | 0.99 | % | 1.00 | % | ||||||||||||||
Net investment income | 0.66 | %(F) | 0.88 | % | 0.88 | %(F) | 0.98 | % | 1.32 | % | 2.36 | %(H) | 1.28 | % | ||||||||||||||
Portfolio turnover rate | 13 | %(D)(I) | 15 | %(I) | 9 | %(D)(I) | 12 | %(I) | 8 | % | 11 | % | 19 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | The net investment income per share was based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.97%, 0.96%, 0.95% and 1.02% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 1.08%, 1.08%, 1.07% and 1.02% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(H) | Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class A shares by 1.22% for the fiscal year ended November 30, 2015. |
(I) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
54
Financial Highlights (Continued)
Touchstone Large Cap Focused Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 40.56 | $ | 41.29 | $ | 46.48 | $ | 40.44 | $ | 41.36 | $ | 41.15 | $ | 41.82 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.07 | )(B) | 0.03 | (B) | 0.03 | — | (C) | 0.21 | (B) | 0.64 | (B) | 0.21 | (B) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 4.10 | 3.50 | 1.74 | 8.67 | 2.33 | (0.24 | ) | 4.78 | ||||||||||||||||||||
Total from investment operations | 4.03 | 3.53 | 1.77 | 8.67 | 2.54 | 0.40 | 4.99 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | (0.17 | ) | (0.78 | ) | (0.17 | ) | (0.19 | ) | |||||||||||||||||
Realized capital gains | (4.85 | ) | (4.26 | ) | (6.96 | ) | (2.46 | ) | (2.68 | ) | (0.02 | ) | (5.47 | ) | ||||||||||||||
Total distributions | (4.85 | ) | (4.26 | ) | (6.96 | ) | (2.63 | ) | (3.46 | ) | (0.19 | ) | (5.66 | ) | ||||||||||||||
Net asset value at end of period | $ | 39.74 | $ | 40.56 | $ | 41.29 | $ | 46.48 | $ | 40.44 | $ | 41.36 | $ | 41.15 | ||||||||||||||
Total return(D) | 10.29 | %(E) | 9.61 | % | 4.24 | %(E) | 22.69 | % | 6.71 | % | 0.98 | % | 12.40 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 43,473 | $ | 47,838 | $ | 67,599 | $ | 74,122 | $ | 83,246 | $ | 89,890 | $ | 90,784 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(F) | 1.82 | %(G) | 1.79 | % | 1.78 | %(G) | 1.82 | % | 1.79 | % | 1.78 | % | 1.79 | % | ||||||||||||||
Gross expenses (including liquidity provider expenses)(H) | 1.94 | %(G) | 1.90 | % | 1.89 | %(G) | 1.82 | % | 1.79 | % | 1.78 | % | 1.79 | % | ||||||||||||||
Net investment income (loss) | (0.15 | %)(G) | 0.07 | % | 0.07 | %(G) | 0.18 | % | 0.54 | % | 1.57 | %(I) | 0.50 | % | ||||||||||||||
Portfolio turnover rate | 13 | %(E)(J) | 15 | %(J) | 9 | %(E)(J) | 12 | %(J) | 8 | % | 11 | % | 19 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | The net investment income per share was based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 1.79%, 1.78%, 1.76% and 1.82% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(G) | Annualized. |
(H) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 1.91%, 1.89%, 1.87% and 1.82% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(I) | Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class C shares by 1.22% for the fiscal year ended November 30, 2015. |
(J) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
55
Financial Highlights (Continued)
Touchstone Large Cap Focused Fund— Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(B) | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 43.24 | $ | 43.68 | $ | 48.72 | $ | 42.26 | $ | 43.06 | $ | 42.76 | $ | 43.31 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.21 | (C) | 0.48 | (C) | 0.29 | 0.56 | 0.64 | (C) | 1.12 | (C) | 0.68 | (C) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 4.35 | 3.71 | 1.84 | 8.99 | 2.43 | (0.25 | ) | 4.97 | ||||||||||||||||||||
Total from investment operations | 4.56 | 4.19 | 2.13 | 9.55 | 3.07 | 0.87 | 5.65 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.37 | ) | (0.21 | ) | (0.63 | ) | (1.19 | ) | (0.55 | ) | (0.73 | ) | ||||||||||||||
Realized capital gains | (4.85 | ) | (4.26 | ) | (6.96 | ) | (2.46 | ) | (2.68 | ) | (0.02 | ) | (5.47 | ) | ||||||||||||||
Total distributions | (5.22 | ) | (4.63 | ) | (7.17 | ) | (3.09 | ) | (3.87 | ) | (0.57 | ) | (6.20 | ) | ||||||||||||||
Net asset value at end of period | $ | 42.58 | $ | 43.24 | $ | 43.68 | $ | 48.72 | $ | 42.26 | $ | 43.06 | $ | 42.76 | ||||||||||||||
Total return | 10.88 | %(D) | 10.81 | % | 4.85 | %(D) | 24.03 | % | 7.84 | % | 2.07 | % | 13.61 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 391,293 | $ | 413,137 | $ | 394,077 | $ | 438,732 | $ | 552,611 | $ | 689,502 | $ | 932,941 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(E) | 0.75 | %(F) | 0.73 | % | 0.74 | %(F) | 0.74 | % | 0.72 | % | 0.71 | % | 0.72 | % | ||||||||||||||
Gross expenses (including liquidity provider expenses)(G) | 0.91 | %(F) | 0.89 | % | 0.90 | %(F) | 0.75 | % | 0.72 | % | 0.71 | % | 0.72 | % | ||||||||||||||
Net investment income | 0.92 | %(F) | 1.13 | % | 1.11 | %(F) | 1.26 | % | 1.60 | % | 2.63 | %(H) | 1.55 | % | ||||||||||||||
Portfolio turnover rate | 13 | %(D)(I) | 15 | %(I) | 9 | %(D)(I) | 12 | %(I) | 8 | % | 11 | % | 19 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | Effective October 28, 2017, Class I shares of the Sentinel International Equity Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund. |
(C) | The net investment income per share was based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.72%, 0.72%, 0.72% and 0.74% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 0.88%, 0.88%, 0.88% and 0.75% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(H) | Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Class Y shares by 1.22%, for the fiscal year ended November 30, 2015. |
(I) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
56
Financial Highlights(Continued)
Touchstone Large Cap Focused Fund— Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended December 31, 2019 | Year Ended June 30, | Seven Months Ended June 30, | Year Ended November 30, | Period Ended November 30, | ||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(B) | 2016 | 2015(C) | |||||||||||||||||||
Net asset value at beginning of period | $ | 43.31 | $ | 43.75 | $ | 48.81 | $ | 42.32 | $ | 43.11 | $ | 43.01 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.17 | 0.51 | (D) | 0.34 | 0.61 | 0.70 | (D) | 1.07 | (D) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 4.41 | 3.71 | 1.80 | 9.01 | 2.41 | (0.51 | ) | |||||||||||||||||
Total from investment operations | 4.58 | 4.22 | 2.14 | 9.62 | 3.11 | 0.56 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.40 | ) | (0.40 | ) | (0.24 | ) | (0.67 | ) | (1.22 | ) | (0.46 | ) | ||||||||||||
Realized capital gains | (4.85 | ) | (4.26 | ) | (6.96 | ) | (2.46 | ) | (2.68 | ) | — | |||||||||||||
Total distributions | (5.25 | ) | (4.66 | ) | (7.20 | ) | (3.13 | ) | (3.90 | ) | (0.46 | ) | ||||||||||||
Net asset value at end of period | $ | 42.64 | $ | 43.31 | $ | 43.75 | $ | 48.81 | $ | 42.32 | $ | 43.11 | ||||||||||||
Total return | 10.91 | %(E) | 10.87 | % | 4.93 | %(E) | 24.14 | % | 7.92 | % | 1.31 | %(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 135,317 | $ | 100,473 | $ | 46,683 | $ | 44,738 | $ | 29,927 | $ | 18,225 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(F) | 0.69 | %(G) | 0.66 | % | 0.67 | %(G) | 0.68 | % | 0.65 | % | 0.61 | %(G) | ||||||||||||
Gross expenses (including liquidity provider expenses)(H) | 0.87 | %(G) | 0.85 | % | 0.88 | %(G) | 0.70 | % | 0.72 | % | 1.76 | %(G) | ||||||||||||
Net investment income | 0.97 | %(G) | 1.20 | % | 1.18 | %(G) | 1.32 | % | 1.72 | % | 2.65 | %(G)(I) | ||||||||||||
Portfolio turnover rate | 13 | %(E)(J) | 15 | %(J) | 9 | %(E)(J) | 12 | %(J) | 8 | % | 11 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | Effective October 30, 2017, Class R6 shares of the Predecessor Fund were reorganized into Institutional Class shares of the Fund. |
(C) | Represents the period from commencement of operations (December 23, 2014) through November 30, 2015. |
(D) | The net investment income per share was based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.66%, 0.65%, 0.65% and 0.68% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(G) | Annualized. |
(H) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 0.84%, 0.84%, 0.86% and 0.70% for the six months ended December 31, 2019, the year ended June 30, 2019, the seven months ended June 30, 2018 and the year ended November 30, 2017, respectively. |
(I) | Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for Institutional Class shares by 1.30%, for the fiscal year ended November 30, 2015. |
(J) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
57
Financial Highlights(Continued)
Touchstone Large Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | Period Ended | |||||||||||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.11 | $ | 13.27 | $ | 11.96 | $ | 10.49 | $ | 10.65 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.06 | 0.09 | (B) | 0.09 | 0.06 | 0.08 | 0.09 | (B) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.13 | 0.83 | 1.27 | 1.49 | (0.18 | ) | 0.57 | |||||||||||||||||
Total from investment operations | 1.19 | 0.92 | 1.36 | 1.55 | (0.10 | ) | 0.66 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.08 | ) | (0.05 | ) | (0.08 | ) | �� | (0.06 | ) | (0.01 | ) | |||||||||||
Realized capital gains | (0.87 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.98 | ) | (0.08 | ) | (0.05 | ) | (0.08 | ) | (0.06 | ) | (0.01 | ) | ||||||||||||
Net asset value at end of period | $ | 14.32 | $ | 14.11 | $ | 13.27 | $ | 11.96 | $ | 10.49 | $ | 10.65 | ||||||||||||
Total return(C) | 8.52 | %(D) | 7.04 | % | 11.35 | % | 14.82 | % | (0.92 | %) | 6.57 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 3,302 | $ | 4,067 | $ | 2,975 | $ | 5,368 | $ | 3,657 | $ | 2,013 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.03 | %(E) | 1.11 | % | 1.12 | % | 1.12 | % | 1.12 | % | 1.12 | %(E) | ||||||||||||
Gross expenses | 1.65 | %(E) | 1.67 | % | 1.50 | % | 1.57 | % | 1.68 | % | 4.17 | %(E) | ||||||||||||
Net investment income | 0.69 | %(E) | 0.63 | % | 0.48 | % | 0.56 | % | 0.87 | % | 0.81 | %(E) | ||||||||||||
Portfolio turnover rate | 6 | %(D) | 19 | %(F) | 10 | % | 23 | % | 33 | % | 8 | %(D)(G) |
Touchstone Large Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | Period Ended | |||||||||||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 13.85 | $ | 13.04 | $ | 11.80 | $ | 10.37 | $ | 10.60 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (— | )(H) | (0.02 | )(B) | (0.04 | ) | (0.02 | ) | 0.02 | 0.01 | (B) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 1.11 | 0.83 | 1.28 | 1.47 | (0.20 | ) | 0.59 | |||||||||||||||||
Total from investment operations | 1.11 | 0.81 | 1.24 | 1.45 | (0.18 | ) | 0.60 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | (0.02 | ) | (0.05 | ) | — | ||||||||||||||||
Realized capital gains | (0.87 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (0.87 | ) | — | — | (0.02 | ) | (0.05 | ) | — | |||||||||||||||
Net asset value at end of period | $ | 14.09 | $ | 13.85 | $ | 13.04 | $ | 11.80 | $ | 10.37 | $ | 10.60 | ||||||||||||
Total return(C) | 8.09 | %(D) | 6.21 | % | 10.51 | % | 13.98 | % | (1.72 | %) | 6.00 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 7,537 | $ | 7,372 | $ | 7,849 | $ | 8,102 | $ | 6,124 | $ | 1,370 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.78 | %(E) | 1.86 | % | 1.87 | % | 1.87 | % | 1.87 | % | 1.87 | %(E) | ||||||||||||
Gross expenses | 2.04 | %(E) | 2.13 | % | 2.12 | % | 2.12 | % | 2.39 | % | 4.34 | %(E) | ||||||||||||
Net investment income (loss) | (0.06 | %)(E) | (0.12 | %) | (0.27 | %) | (0.19 | %) | 0.12 | % | 0.06 | %(E) | ||||||||||||
Portfolio turnover rate | 6 | %(D) | 19 | %(F) | 10 | % | 23 | % | 33 | % | 8 | %(D)(G) |
(A) | Represents the period from commencement of operations (July 10, 2014) through June 30, 2015. |
(B) | The net investment income per share was based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Capital Growth Fund acquired on June 26, 2015. If these transactions were included, portfolio turnover would have been higher. |
(H) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
58
Financial Highlights(Continued)
Touchstone Large Cap Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | Period Ended | |||||||||||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.14 | $ | 13.31 | $ | 12.00 | $ | 10.52 | $ | 10.67 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.12 | (B) | 0.10 | 0.09 | 0.11 | 0.11 | (B) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.14 | 0.84 | 1.30 | 1.49 | (0.19 | ) | 0.57 | |||||||||||||||||
Total from investment operations | 1.21 | 0.96 | 1.40 | 1.58 | (0.08 | ) | 0.68 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.13 | ) | (0.09 | ) | (0.10 | ) | (0.07 | ) | (0.01 | ) | ||||||||||||
Realized capital gains | (0.87 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (1.02 | ) | (0.13 | ) | (0.09 | ) | (0.10 | ) | (0.07 | ) | (0.01 | ) | ||||||||||||
Net asset value at end of period | $ | 14.33 | $ | 14.14 | $ | 13.31 | $ | 12.00 | $ | 10.52 | $ | 10.67 | ||||||||||||
Total return | 8.62 | %(C) | 7.31 | % | 11.62 | % | 15.13 | % | (0.70 | %) | 6.80 | %(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 221,901 | $ | 213,650 | $ | 231,984 | $ | 222,080 | $ | 208,463 | $ | 194,226 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.78 | %(D) | 0.86 | % | 0.87 | % | 0.87 | % | 0.87 | % | 0.87 | %(D) | ||||||||||||
Gross expenses | 0.90 | %(D) | 0.99 | % | 0.99 | % | 1.01 | % | 1.04 | % | 1.19 | %(D) | ||||||||||||
Net investment income | 0.94 | %(D) | 0.88 | % | 0.73 | % | 0.81 | % | 1.11 | % | 1.06 | %(D) | ||||||||||||
Portfolio turnover rate | 6 | %(C) | 19 | %(E) | 10 | % | 23 | % | 33 | % | 8 | %(C)(F) |
Touchstone Large Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | Period Ended | |||||||||||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.16 | $ | 13.33 | $ | 12.02 | $ | 10.53 | $ | 10.68 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.01 | 0.14 | (B) | 0.10 | 0.11 | 0.13 | 0.12 | (B) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.21 | 0.83 | 1.31 | 1.49 | (0.20 | ) | 0.57 | |||||||||||||||||
Total from investment operations | 1.22 | 0.97 | 1.41 | 1.60 | (0.07 | ) | 0.69 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.14 | ) | (0.10 | ) | (0.11 | ) | (0.08 | ) | (0.01 | ) | ||||||||||||
Realized capital gains | (0.87 | ) | — | — | — | — | — | |||||||||||||||||
Total distributions | (1.03 | ) | (0.14 | ) | (0.10 | ) | (0.11 | ) | (0.08 | ) | (0.01 | ) | ||||||||||||
Net asset value at end of period | $ | 14.35 | $ | 14.16 | $ | 13.33 | $ | 12.02 | $ | 10.53 | $ | 10.68 | ||||||||||||
Total return | 8.71 | %(C) | 7.43 | % | 11.70 | % | 15.31 | % | (0.66 | %) | 6.92 | %(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 79,251 | $ | 59,211 | $ | 124,759 | $ | 97,888 | $ | 87,032 | $ | 98,889 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.68 | %(D) | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | % | 0.77 | %(D) | ||||||||||||
Gross expenses | 0.83 | %(D) | 0.92 | % | 0.91 | % | 0.91 | % | 0.93 | % | 0.98 | %(D) | ||||||||||||
Net investment income | 1.04 | %(D) | 0.98 | % | 0.83 | % | 0.91 | % | 1.21 | % | 1.16 | %(D) | ||||||||||||
Portfolio turnover rate | 6 | %(C) | 19 | %(E) | 10 | % | 23 | % | 33 | % | 8 | %(C)(F) |
(A) | Represents the period from commencement of operations (July 10, 2014) through June 30, 2015. |
(B) | The net investment income per share was based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
(F) | Portfolio turnover excludes the purchases and sales of the Touchstone Capital Growth Fund acquired on June 26, 2015. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
59
Financial Highlights(Continued)
Touchstone Large Company Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 42.50 | $ | 41.33 | $ | 35.52 | $ | 31.38 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.07 | ) | (0.56 | ) | (0.24 | ) | (0.19 | )(C) | ||||||||
Net realized and unrealized gains on investments | 4.28 | 4.42 | 7.19 | 5.41 | ||||||||||||
Total from investment operations | 4.21 | 3.86 | 6.95 | 5.22 | ||||||||||||
Distributions from: | ||||||||||||||||
Realized capital gains | (3.15 | ) | (2.69 | ) | (1.14 | ) | (1.08 | ) | ||||||||
Net asset value at end of period | $ | 43.56 | $ | 42.50 | $ | 41.33 | $ | 35.52 | ||||||||
Total return(D) | 10.20 | %(E) | 10.39 | % | 19.75 | % | 17.31 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 1,592 | $ | 1,425 | $ | 3,417 | $ | 140 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.10 | %(F) | 1.23 | % | 1.23 | % | 1.23 | %(F) | ||||||||
Gross expenses | 2.12 | %(F) | 2.01 | % | 1.67 | % | 11.14 | %(F) | ||||||||
Net investment loss | (0.62 | %)(F) | (0.59 | %) | (0.63 | %) | (0.68 | %)(F) | ||||||||
Portfolio turnover rate | 5 | %(E) | 41 | % | 44 | % | 55 | % |
Touchstone Large Company Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 41.52 | $ | 40.74 | $ | 35.29 | $ | 31.38 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.20 | ) | (0.40 | ) | (0.30 | ) | (0.38 | )(C) | ||||||||
Net realized and unrealized gains on investments | 4.14 | 3.87 | 6.89 | 5.37 | ||||||||||||
Total from investment operations | 3.94 | 3.47 | 6.59 | 4.99 | ||||||||||||
Distributions from: | ||||||||||||||||
Realized capital gains | (3.15 | ) | (2.69 | ) | (1.14 | ) | (1.08 | ) | ||||||||
Net asset value at end of period | $ | 42.31 | $ | 41.52 | $ | 40.74 | $ | 35.29 | ||||||||
Total return(D) | 9.79 | %(E) | 9.55 | % | 18.88 | % | 16.52 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 454 | $ | 396 | $ | 236 | $ | 31 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.85 | %(F) | 1.98 | % | 1.98 | % | 1.98 | %(F) | ||||||||
Gross expenses | 3.96 | %(F) | 4.38 | % | 8.12 | % | 257.02 | %(F) | ||||||||
Net investment loss | (1.37 | %)(F) | (1.34 | %) | (1.38 | %) | (1.43 | %)(F) | ||||||||
Portfolio turnover rate | 5 | %(E) | 41 | % | 44 | % | 55 | % |
(A) | Represents the period from commencement of operations (August 15, 2016) through June 30, 2017. |
(B) | Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016. |
(C) | The net investment loss per share was based on average shares outstanding for the period. |
(D) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
See accompanying Notes to Financial Statements.
60
Financial Highlights(Continued)
Touchstone Large Company Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 42.82 | $ | 41.53 | $ | 35.60 | $ | 31.38 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.09 | ) | (0.12 | ) | (0.13 | ) | (0.12 | )(C) | ||||||||
Net realized and unrealized gains on investments | 4.39 | 4.10 | 7.20 | 5.42 | ||||||||||||
Total from investment operations | 4.30 | 3.98 | 7.07 | 5.30 | ||||||||||||
Distributions from: | ||||||||||||||||
Realized capital gains | (3.15 | ) | (2.69 | ) | (1.14 | ) | (1.08 | ) | ||||||||
Net asset value at end of period | $ | 43.97 | $ | 42.82 | $ | 41.53 | $ | 35.60 | ||||||||
Total return | 10.34 | %(D) | 10.66 | % | 20.02 | % | 17.57 | %(D) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 18,639 | $ | 19,580 | $ | 15,961 | $ | 9,938 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.86 | %(E) | 0.98 | % | 0.98 | % | 0.98 | %(E) | ||||||||
Gross expenses | 1.05 | %(E) | 1.16 | % | 1.12 | % | 1.12 | %(E) | ||||||||
Net investment loss | (0.37 | %)(E) | (0.34 | %) | (0.38 | %) | (0.42 | %)(E) | ||||||||
Portfolio turnover rate | 5 | %(D) | 41 | % | 44 | % | 55 | % |
Touchstone Large Company Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 42.95 | $ | 41.61 | $ | 35.63 | $ | 29.15 | $ | 33.17 | $ | 29.67 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.07 | ) | (0.10 | ) | (0.11 | ) | (0.12 | )(C) | (0.14 | )(C) | (0.08 | )(C) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 4.41 | 4.13 | 7.23 | 7.68 | (1.45 | ) | 4.61 | |||||||||||||||||
Total from investment operations | 4.34 | 4.03 | 7.12 | 7.56 | (1.59 | ) | 4.53 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (3.15 | ) | (2.69 | ) | (1.14 | ) | (1.08 | ) | (2.43 | ) | (1.03 | ) | ||||||||||||
Proceeds from redemption fees collected | — | — | — | — | — | (F) | — | |||||||||||||||||
Net asset value at end of period | $ | 44.14 | $ | 42.95 | $ | 41.61 | $ | 35.63 | $ | 29.15 | $ | 33.17 | ||||||||||||
Total return | 10.40 | %(D) | 10.74 | % | 20.17 | % | 26.67 | % | (5.08 | %) | 15.59 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 179,800 | $ | 204,391 | $ | 224,379 | $ | 189,444 | $ | 180,104 | $ | 196,084 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.76 | %(E) | 0.88 | % | 0.88 | % | 0.89 | % | 0.95 | % | 0.95 | % | ||||||||||||
Gross expenses | 0.89 | %(E) | 0.99 | % | 0.98 | % | 1.02 | % | 1.00 | % | 1.00 | % | ||||||||||||
Net investment loss | (0.27 | %)(E) | (0.24 | %) | (0.28 | %) | (0.39 | %) | (0.46 | %) | (0.25 | %) | ||||||||||||
Portfolio turnover rate | 5 | %(D) | 41 | % | 44 | % | 55 | % | 57 | % | 80 | % |
(A) | Represents the period from commencement of operations (August 15, 2016) through June 30, 2017. |
(B) | Net asset value at the beginning of period is based on the net asset value of Institutional Class shares on August 15, 2016. |
(C) | The net investment loss per share was based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Proceeds from redemption fees are related to the DSM Large Cap Growth Fund, the Predecessor Fund, and are less than $0.005 per share. |
See accompanying Notes to Financial Statements.
61
Financial Highlights(Continued)
Touchstone Ohio Tax-Free Bond Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.63 | $ | 11.33 | $ | 11.55 | $ | 12.04 | $ | 11.70 | $ | 11.76 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.15 | 0.32 | 0.33 | 0.35 | 0.36 | 0.38 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | 0.30 | (0.22 | ) | (0.47 | ) | 0.36 | (0.06 | ) | |||||||||||||||
Total from investment operations | 0.22 | 0.62 | 0.11 | (0.12 | ) | 0.72 | 0.32 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.32 | ) | (0.33 | ) | (0.35 | ) | (0.36 | ) | (0.38 | ) | ||||||||||||
Realized capital gains | (0.01 | ) | — | — | (0.02 | ) | (0.02 | ) | — | |||||||||||||||
Total distributions | (0.16 | ) | (0.32 | ) | (0.33 | ) | (0.37 | ) | (0.38 | ) | (0.38 | ) | ||||||||||||
Net asset value at end of period | $ | 11.69 | $ | 11.63 | $ | 11.33 | $ | 11.55 | $ | 12.04 | $ | 11.70 | ||||||||||||
Total return(A) | 1.88 | %(B) | 5.60 | % | 0.99 | % | (1.03 | %) | 6.25 | % | 2.72 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 31,568 | $ | 33,515 | $ | 35,728 | $ | 42,818 | $ | 52,599 | $ | 47,153 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.85 | %(C) | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | ||||||||||||
Gross expenses | 1.16 | %(C) | 1.15 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.09 | % | ||||||||||||
Net investment income | 2.57 | %(C) | 2.85 | % | 2.91 | % | 2.98 | % | 3.05 | % | 3.20 | % | ||||||||||||
Portfolio turnover rate | 19 | %(B) | 53 | % | 47 | % | 34 | % | 27 | % | 23 | % |
Touchstone Ohio Tax-Free Bond Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.65 | $ | 11.33 | $ | 11.57 | $ | 12.06 | $ | 11.72 | $ | 11.78 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.23 | 0.25 | 0.26 | 0.27 | 0.29 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | 0.33 | (0.24 | ) | (0.47 | ) | 0.36 | (0.06 | ) | |||||||||||||||
Total from investment operations | 0.18 | 0.56 | 0.01 | (0.21 | ) | 0.63 | 0.23 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.24 | ) | (0.25 | ) | (0.26 | ) | (0.27 | ) | (0.29 | ) | ||||||||||||
Realized capital gains | (0.01 | ) | — | — | (0.02 | ) | (0.02 | ) | — | |||||||||||||||
Total distributions | (0.12 | ) | (0.24 | ) | (0.25 | ) | (0.28 | ) | (0.29 | ) | (0.29 | ) | ||||||||||||
Net asset value at end of period | $ | 11.71 | $ | 11.65 | $ | 11.33 | $ | 11.57 | $ | 12.06 | $ | 11.72 | ||||||||||||
Total return(A) | 1.50 | %(B) | 4.97 | % | 0.06 | % | (1.77 | %) | 5.45 | % | 1.96 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 2,328 | $ | 2,756 | $ | 5,363 | $ | 6,515 | $ | 7,320 | $ | 7,266 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.60 | %(C) | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | 1.60 | % | ||||||||||||
Gross expenses | 2.21 | %(C) | 2.08 | % | 2.01 | % | 2.03 | % | 2.09 | % | 1.93 | % | ||||||||||||
Net investment income | 1.82 | %(C) | 2.10 | % | 2.16 | % | 2.23 | % | 2.30 | % | 2.45 | % | ||||||||||||
Portfolio turnover rate | 19 | %(B) | 53 | % | 47 | % | 34 | % | 27 | % | 23 | % |
(A) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
62
Financial Highlights (Continued)
Touchstone Ohio Tax-Free Bond Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.64 | $ | 11.33 | $ | 11.56 | $ | 12.00 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.17 | 0.35 | 0.29 | 0.38 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | 0.31 | (0.16 | ) | (0.49 | ) | ||||||||||
Total from investment operations | 0.24 | 0.66 | 0.13 | (0.11 | ) | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.17 | ) | (0.35 | ) | (0.36 | ) | (0.31 | ) | ||||||||
Realized capital gains | (0.01 | ) | — | — | (0.02 | ) | ||||||||||
Total distributions | (0.18 | ) | (0.35 | ) | (0.36 | ) | (0.33 | ) | ||||||||
Net asset value at end of period | $ | 11.70 | $ | 11.64 | $ | 11.33 | $ | 11.56 | ||||||||
Total return | 2.01 | %(C) | 5.96 | % | 1.15 | % | (0.90 | %)(C) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 2,584 | $ | 3,031 | $ | 4,596 | $ | 2 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.60 | %(D) | 0.60 | % | 0.60 | % | 0.60 | %(D) | ||||||||
Gross expenses | 1.22 | %(D) | 1.05 | % | 1.16 | % | 298.27 | %(D) | ||||||||
Net investment income | 2.82 | %(D) | 3.10 | % | 3.16 | % | 4.00 | %(D) | ||||||||
Portfolio turnover rate | 19 | %(C) | 53 | % | 47 | % | 34 | % |
Touchstone Ohio Tax-Free Bond Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | Period Ended | |||||||||||||||
2019 | Year Ended June 30, | June 30, | ||||||||||||||
(Unaudited) | 2019 | 2018 | 2017(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.64 | $ | 11.33 | $ | 11.56 | $ | 12.00 | (B) | |||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.17 | 0.36 | 0.30 | 0.39 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | 0.31 | (0.16 | ) | (0.50 | ) | ||||||||||
Total from investment operations | 0.24 | 0.67 | 0.14 | (0.11 | ) | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.17 | ) | (0.36 | ) | (0.37 | ) | (0.31 | ) | ||||||||
Realized capital gains | (0.01 | ) | — | — | (0.02 | ) | ||||||||||
Total distributions | (0.18 | ) | (0.36 | ) | (0.37 | ) | (0.33 | ) | ||||||||
Net asset value at end of period | $ | 11.70 | $ | 11.64 | $ | 11.33 | $ | 11.56 | ||||||||
Total return | 2.03 | %(C) | 6.05 | % | 1.18 | % | (0.90 | %)(C) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 12,684 | $ | 7,913 | $ | 560 | $ | 2 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.55 | %(D) | 0.55 | % | 0.55 | % | 0.55 | %(D) | ||||||||
Gross expenses | 0.90 | %(D) | 0.96 | % | 2.54 | % | 298.26 | %(D) | ||||||||
Net investment income | 2.87 | %(D) | 3.15 | % | 3.21 | % | 4.04 | %(D) | ||||||||
Portfolio turnover rate | 19 | %(C) | 53 | % | 47 | % | 34 | % |
(A) | Represents the period from commencement of operations (August 31, 2016) through December 31, 2017. |
(B) | Net asset value at the beginning of period is based on the net asset value of Class A shares on August 31, 2016. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
63
Financial Highlights (Continued)
Touchstone Small Company Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 4.83 | $ | 5.53 | $ | 5.64 | $ | 5.19 | $ | 5.58 | $ | 7.19 | $ | 8.52 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | )(B) | (0.03 | )(B) | — | (B)(C) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.27 | (0.07 | ) | 0.37 | 0.89 | 0.57 | 0.26 | 0.38 | ||||||||||||||||||||
Total from investment operations | 0.26 | (0.08 | ) | 0.36 | 0.87 | 0.55 | 0.23 | 0.38 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Realized capital gains | (0.28 | ) | (0.62 | ) | (0.47 | ) | (0.42 | ) | (0.94 | ) | (1.84 | ) | (1.71 | ) | ||||||||||||||
Net asset value at end of period | $ | 4.81 | $ | 4.83 | $ | 5.53 | $ | 5.64 | $ | 5.19 | $ | 5.58 | $ | 7.19 | ||||||||||||||
Total return(D) | 5.66 | %(E) | (0.73 | %) | 6.89 | %(E) | 17.95 | % | 12.52 | % | 5.32 | % | 5.40 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 560,609 | $ | 589,664 | $ | 661,866 | $ | 677,055 | $ | 685,807 | $ | 596,864 | $ | 682,481 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.15 | %(F) | 1.12 | % | 1.10 | %(F) | 1.18 | % | 1.22 | % | 1.25 | % | 1.20 | % | ||||||||||||||
Gross expenses | 1.24 | %(F) | 1.20 | % | 1.18 | %(F) | 1.18 | % | 1.22 | % | 1.25 | % | 1.20 | % | ||||||||||||||
Net investment income (loss) | (0.23 | %)(F) | (0.26 | %) | (0.26 | %)(F) | (0.49 | %) | (0.38 | %) | (0.61 | %) | 0.06 | % | ||||||||||||||
Portfolio turnover rate | 33 | %(E) | 94 | %(G)(H) | 30 | %(E) | 82 | % | 61 | % | 70 | % | 59 | % |
Touchstone Small Company Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 2.52 | $ | 3.23 | $ | 3.50 | $ | 3.39 | $ | 4.01 | $ | 5.72 | $ | 7.17 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.05 | ) | (0.02 | ) | (0.10 | ) | (0.03 | )(B) | (0.05 | )(B) | (0.04 | )(B) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.14 | (0.04 | ) | 0.22 | 0.63 | 0.35 | 0.18 | 0.30 | ||||||||||||||||||||
Total from investment operations | 0.12 | (0.09 | ) | 0.20 | 0.53 | 0.32 | 0.13 | 0.26 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Realized capital gains | (0.28 | ) | (0.62 | ) | (0.47 | ) | (0.42 | ) | (0.94 | ) | (1.84 | ) | (1.71 | ) | ||||||||||||||
Net asset value at end of period | $ | 2.36 | $ | 2.52 | $ | 3.23 | $ | 3.50 | $ | 3.39 | $ | 4.01 | $ | 5.72 | ||||||||||||||
Total return(D) | 5.29 | %(E) | (1.65 | %) | 6.51 | %(E) | 17.36 | % | 11.48 | % | 4.72 | % | 4.55 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 29,685 | $ | 39,390 | $ | 97,136 | $ | 104,051 | $ | 110,842 | $ | 108,192 | $ | 115,642 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.95 | %(F) | 1.88 | % | 1.85 | %(F) | 1.92 | % | 1.95 | % | 1.94 | % | 1.91 | % | ||||||||||||||
Gross expenses | 2.08 | %(F) | 1.96 | % | 1.93 | %(F) | 1.92 | % | 1.95 | % | 1.94 | % | 1.91 | % | ||||||||||||||
Net investment loss | (1.03 | %)(F) | (1.01 | %) | (1.02 | %)(F) | (1.23 | %) | (1.10 | %) | (1.30 | %) | (0.66 | %) | ||||||||||||||
Portfolio turnover rate | 33 | %(E) | 94 | %(G)(H) | 30 | %(E) | 82 | % | 61 | % | 70 | % | 59 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
64
Financial Highlights (Continued)
Touchstone Small Company Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||||||||||||||
December 31, | Ended | Ended | ||||||||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | |||||||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(B) | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 5.33 | $ | 6.04 | $ | 6.10 | $ | 5.56 | $ | 5.89 | $ | 7.48 | $ | 8.78 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | — | (C) | (— | )(C) | (— | )(C) | (0.06 | ) | (— | )(C)(D) | (0.01 | )(D) | 0.03 | (D) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.30 | (0.09 | ) | 0.41 | 1.02 | 0.61 | 0.28 | 0.38 | ||||||||||||||||||||
Total from investment operations | 0.30 | (0.09 | ) | 0.41 | 0.96 | 0.61 | 0.27 | �� | 0.41 | |||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | (— | )(C) | — | — | — | (0.02 | ) | — | |||||||||||||||||||
Realized capital gains | (0.28 | ) | (0.62 | ) | (0.47 | ) | (0.42 | ) | (0.94 | ) | (1.84 | ) | (1.71 | ) | ||||||||||||||
Total distributions | (0.28 | ) | (0.62 | ) | (0.47 | ) | (0.42 | ) | (0.94 | ) | (1.86 | ) | (1.71 | ) | ||||||||||||||
Net asset value at end of period | $ | 5.35 | $ | 5.33 | $ | 6.04 | $ | 6.10 | $ | 5.56 | $ | 5.89 | $ | 7.48 | ||||||||||||||
Total return | 5.88 | %(E) | (0.79 | %) | 7.21 | %(E) | 18.41 | % | 12.95 | % | 5.71 | % | 5.62 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 275,848 | $ | 326,021 | $ | 383,050 | $ | 388,404 | $ | 257,483 | $ | 220,543 | $ | 247,639 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 0.89 | %(F) | 0.87 | % | 0.84 | %(F) | 0.85 | % | 0.89 | % | 0.87 | % | 0.85 | % | ||||||||||||||
Gross expenses | 1.00 | %(F) | 0.95 | % | 0.92 | %(F) | 0.85 | % | 0.89 | % | 0.87 | % | 0.85 | % | ||||||||||||||
Net investment income (loss) | 0.03 | %(F) | 0.00 | %(C) | (0.01 | %)(F) | (0.16 | %) | (0.04 | %) | (0.24 | %) | 0.46 | % | ||||||||||||||
Portfolio turnover rate | 33 | %(E) | 94 | %(G)(H) | 30 | %(E) | 82 | % | 61 | % | 70 | % | 59 | % |
Touchstone Small Company Fund— Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||
December 31, | Ended | Ended | Period Ended | |||||||||||||
2019 | June 30, | June 30, | November 30, | |||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017(I) | |||||||||||||
Net asset value at beginning of period | $ | 5.32 | $ | 6.04 | $ | 6.10 | $ | 5.80 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | — | (C) | — | (C) | — | (C) | (— | )(C) | ||||||||
Net realized and unrealized gains (losses) on investments | 0.30 | (0.10 | ) | 0.41 | 0.30 | |||||||||||
Total from investment operations | 0.30 | (0.10 | ) | 0.41 | 0.30 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | (— | )(C) | — | — | |||||||||||
Realized capital gains | (0.28 | ) | (0.62 | ) | (0.47 | ) | — | |||||||||
Total distributions | (0.28 | ) | (0.62 | ) | (0.47 | ) | — | |||||||||
Net asset value at end of period | $ | 5.34 | $ | 5.32 | $ | 6.04 | $ | 6.10 | ||||||||
Total return | 5.89 | %(E) | (0.91 | %) | 7.21 | %(E) | 5.17 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000’s) | $ | 9,340 | $ | 2,216 | $ | 8 | $ | 3 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.79 | %(F) | 0.79 | % | 0.79 | %(F) | 0.79 | %(F) | ||||||||
Gross expenses | 1.08 | %(F) | 2.52 | % | 275.86 | %(F) | 2069.15 | %(F) | ||||||||
Net investment income (loss) | 0.13 | %(F) | 0.08 | % | 0.05 | %(F) | (0.70 | %)(F) | ||||||||
Portfolio turnover rate | 33 | %(E) | 94 | %(G)(H) | 30 | %(E) | 82 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | Effective October 28, 2017, Class I shares of the Sentinel Small Company Fund (the “Predecessor Fund”) were reorganized into Class Y shares of the Fund. |
(C) | Less than $0.005 per share or 0.005%. |
(D) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
(I) | Represents the period from commencement of operations (October 30, 2017) through November 30, 2017. |
See accompanying Notes to Financial Statements.
65
Financial Highlights(Continued)
Touchstone Small Company Fund—Class R6
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | Year | Seven Months | ||||||||||||||||||||||
December 31, | Ended | Ended | Period Ended | |||||||||||||||||||||
2019 | June 30, | June 30, | Year Ended November 30, | November 30, | ||||||||||||||||||||
(Unaudited) | 2019 | 2018(A) | 2017 | 2016 | 2015(B) | |||||||||||||||||||
Net asset value at beginning of period | $ | 4.95 | $ | 5.65 | $ | 5.73 | $ | 5.24 | $ | 5.60 | $ | 5.44 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.01 | 0.01 | — | (C) | (0.03 | ) | 0.01 | (D) | (0.01 | )(D) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.27 | (0.08 | ) | 0.39 | 0.94 | 0.57 | 0.17 | |||||||||||||||||
Total from investment operations | 0.28 | (0.07 | ) | 0.39 | 0.91 | 0.58 | 0.16 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.01 | ) | — | — | — | — | |||||||||||||||||
Realized capital gains | (0.28 | ) | (0.62 | ) | (0.47 | ) | (0.42 | ) | (0.94 | ) | — | |||||||||||||
Total distributions | (0.28 | ) | (0.63 | ) | (0.47 | ) | (0.42 | ) | (0.94 | ) | — | |||||||||||||
Net asset value at end of period | $ | 4.95 | $ | 4.95 | $ | 5.65 | $ | 5.73 | $ | 5.24 | $ | 5.60 | ||||||||||||
Total return | 6.13 | %(E) | (0.59 | %) | 7.33 | %(E) | 18.58 | % | 13.07 | % | 2.94 | %(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 76,534 | $ | 137,585 | $ | 76,246 | $ | 67,052 | $ | 13,000 | $ | 599 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.75 | %(F) | 0.73 | % | 0.73 | %(F) | 0.75 | % | 0.73 | % | 0.73 | %(F) | ||||||||||||
Gross expenses | 0.86 | %(F) | 0.84 | % | 0.84 | %(F) | 0.77 | % | 0.99 | % | 2.96 | %(F) | ||||||||||||
Net investment income (loss) | 0.17 | %(F) | 0.14 | % | 0.10 | %(F) | (0.07 | %) | 0.16 | % | (0.18 | %)(F) | ||||||||||||
Portfolio turnover rate | 33 | %(E) | 94 | %(G)(H) | 30 | %(E) | 82 | % | 61 | % | 70 | % |
(A) | The Fund changed its fiscal year end from November 30 to June 30. |
(B) | Represents the period from commencement of operations (December 23, 2014) through November 30, 2015. |
(C) | Less than $0.005 per share. |
(D) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of securities by the Touchstone Small Cap Growth Fund acquired on September 21, 2018 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
66
Financial Highlights (Continued)
Touchstone Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.41 | $ | 9.92 | $ | 10.13 | $ | 8.84 | $ | 9.78 | $ | 9.56 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.16 | 0.14 | 0.19 | 0.16 | 0.16 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.79 | 0.57 | 0.55 | 1.30 | (0.27 | ) | 0.34 | |||||||||||||||||
Total from investment operations | 0.86 | 0.73 | 0.69 | 1.49 | (0.11 | ) | 0.50 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.16 | ) | (0.14 | ) | (0.18 | ) | (0.16 | ) | (0.11 | ) | ||||||||||||
Realized capital gains | (0.49 | ) | (1.08 | ) | (0.76 | ) | (0.02 | ) | (0.67 | ) | (0.17 | ) | ||||||||||||
Total distributions | (0.55 | ) | (1.24 | ) | (0.90 | ) | (0.20 | ) | (0.83 | ) | (0.28 | ) | ||||||||||||
Net asset value at end of period | $ | 9.72 | $ | 9.41 | $ | 9.92 | $ | 10.13 | $ | 8.84 | $ | 9.78 | ||||||||||||
Total return(A) | 9.24 | %(B) | 8.53 | % | 6.92 | % | 16.92 | % | (0.89 | %) | 5.26 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 31,668 | $ | 32,964 | $ | 36,968 | $ | 43,607 | $ | 47,939 | $ | 55,539 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.08 | %(C) | 1.08 | % | 1.08 | % | 1.08 | % | 1.08 | % | 1.08 | % | ||||||||||||
Gross expenses | 1.25 | %(C) | 1.26 | % | 1.26 | % | 1.24 | % | 1.28 | % | 1.27 | % | ||||||||||||
Net investment income | 1.22 | %(C) | 1.67 | % | 1.42 | % | 1.86 | % | 1.71 | % | 1.54 | % | ||||||||||||
Portfolio turnover rate | 23 | %(B) | 37 | %(D) | 24 | % | 29 | % | 19 | %(E) | 20 | % |
Touchstone Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.38 | $ | 9.89 | $ | 10.10 | $ | 8.81 | $ | 9.75 | $ | 9.55 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.02 | 0.09 | 0.08 | 0.12 | 0.09 | 0.07 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.79 | 0.56 | 0.54 | 1.29 | (0.27 | ) | 0.35 | |||||||||||||||||
Total from investment operations | 0.81 | 0.65 | 0.62 | 1.41 | (0.18 | ) | 0.42 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.08 | ) | (0.07 | ) | (0.10 | ) | (0.09 | ) | (0.05 | ) | ||||||||||||
Realized capital gains | (0.49 | ) | (1.08 | ) | (0.76 | ) | (0.02 | ) | (0.67 | ) | (0.17 | ) | ||||||||||||
Total distributions | (0.51 | ) | (1.16 | ) | (0.83 | ) | (0.12 | ) | (0.76 | ) | (0.22 | ) | ||||||||||||
Net asset value at end of period | $ | 9.68 | $ | 9.38 | $ | 9.89 | $ | 10.10 | $ | 8.81 | $ | 9.75 | ||||||||||||
Total return(A) | 8.79 | %(B) | 7.72 | % | 6.12 | % | 16.06 | % | (1.65 | %) | 4.41 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 3,626 | $ | 3,175 | $ | 3,654 | $ | 4,503 | $ | 5,624 | $ | 6,932 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.83 | %(C) | 1.83 | % | 1.83 | % | 1.83 | % | 1.83 | % | 1.83 | % | ||||||||||||
Gross expenses | 2.30 | %(C) | 2.35 | % | 2.21 | % | 2.12 | % | 2.16 | % | 2.14 | % | ||||||||||||
Net investment income | 0.47 | %(C) | 0.92 | % | 0.68 | % | 1.11 | % | 0.96 | % | 0.79 | % | ||||||||||||
Portfolio turnover rate | 23 | %(B) | 37 | %(D) | 24 | % | 29 | % | 19 | %(E) | 20 | % | ||||||||||||
(A) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
(E) | Portfolio turnover excludes securities received from processing a subscription-in-kind. |
See accompanying Notes to Financial Statements.
67
Financial Highlights (Continued)
Touchstone Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.45 | $ | 9.96 | $ | 10.17 | $ | 8.87 | $ | 9.81 | $ | 9.59 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.19 | 0.17 | 0.20 | 0.18 | 0.18 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.80 | 0.57 | 0.55 | 1.32 | (0.27 | ) | 0.35 | |||||||||||||||||
Total from investment operations | 0.87 | 0.76 | 0.72 | 1.52 | (0.09 | ) | 0.53 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.19 | ) | (0.17 | ) | (0.20 | ) | (0.18 | ) | (0.14 | ) | ||||||||||||
Realized capital gains | (0.49 | ) | (1.08 | ) | (0.76 | ) | (0.02 | ) | (0.67 | ) | (0.17 | ) | ||||||||||||
Total distributions | (0.56 | ) | (1.27 | ) | (0.93 | ) | (0.22 | ) | (0.85 | ) | (0.31 | ) | ||||||||||||
Net asset value at end of period | $ | 9.76 | $ | 9.45 | $ | 9.96 | $ | 10.17 | $ | 8.87 | $ | 9.81 | ||||||||||||
Total return | 9.36 | %(A) | 8.82 | % | 7.19 | % | 17.28 | % | (0.64 | %) | 5.52 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 92,996 | $ | 92,928 | $ | 81,988 | $ | 83,974 | $ | 76,852 | $ | 104,668 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.79 | %(B) | 0.79 | % | 0.81 | % | 0.83 | % | 0.83 | % | 0.82 | % | ||||||||||||
Gross expenses | 0.94 | %(B) | 0.94 | % | 0.95 | % | 0.97 | % | 0.99 | % | 0.97 | % | ||||||||||||
Net investment income | 1.51 | %(B) | 1.96 | % | 1.70 | % | 2.11 | % | 1.96 | % | 1.80 | % | ||||||||||||
Portfolio turnover rate | 23 | %(A) | 37 | %(C) | 24 | % | 29 | % | 19 | %(D) | 20 | % |
Touchstone Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2019 | Year Ended June 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.42 | $ | 9.93 | $ | 10.14 | $ | 8.85 | $ | 9.79 | $ | 9.57 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.20 | 0.19 | 0.22 | 0.19 | 0.18 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.80 | 0.57 | 0.55 | 1.31 | (0.27 | ) | 0.36 | |||||||||||||||||
Total from investment operations | 0.88 | 0.77 | 0.74 | 1.53 | (0.08 | ) | 0.54 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.20 | ) | (0.19 | ) | (0.22 | ) | (0.19 | ) | (0.15 | ) | ||||||||||||
Realized capital gains | (0.49 | ) | (1.08 | ) | (0.76 | ) | (0.02 | ) | (0.67 | ) | (0.17 | ) | ||||||||||||
Total distributions | (0.57 | ) | (1.28 | ) | (0.95 | ) | (0.24 | ) | (0.86 | ) | (0.32 | ) | ||||||||||||
Net asset value at end of period | $ | 9.73 | $ | 9.42 | $ | 9.93 | $ | 10.14 | $ | 8.85 | $ | 9.79 | ||||||||||||
Total return | 9.45 | %(A) | 8.96 | % | 7.34 | % | 17.38 | % | (0.49 | %) | 5.68 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 239,789 | $ | 208,686 | $ | 262,467 | $ | 249,035 | $ | 219,824 | $ | 248,381 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.68 | %(B) | 0.68 | % | 0.68 | % | 0.68 | % | 0.68 | % | 0.68 | % | ||||||||||||
Gross expenses | 0.89 | %(B) | 0.89 | % | 0.87 | % | 0.86 | % | 0.87 | % | 0.86 | % | ||||||||||||
Net investment income | 1.62 | %(B) | 2.07 | % | 1.82 | % | 2.26 | % | 2.11 | % | 1.94 | % | ||||||||||||
Portfolio turnover rate | 23 | %(A) | 37 | %(C) | 24 | % | 29 | % | 19 | %(D) | 20 | % |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
(D) | Portfolio turnover excludes securities received from processing a subscription-in-kind. |
See accompanying Notes to Financial Statements.
68
December 31, 2019 (Unaudited)
1. Organization
The Touchstone Strategic Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated November 18, 1982. The Trust consists of nineteen funds, including the following ten funds (individually, a “Fund”, and collectively, the “Funds”):
Touchstone Balanced Fund (“Balanced Fund”)
Touchstone International Equity Fund (“International Equity Fund”)
Touchstone International Growth Opportunities Fund (“International Growth Opportunities Fund”)
Touchstone International Small Cap Fund (“International Small Cap Fund”)
Touchstone Large Cap Focused Fund (“Large Cap Focused Fund”)
Touchstone Large Cap Fund (“Large Cap Fund”)
Touchstone Large Company Growth Fund (“Large Company Growth Fund”)
Touchstone Ohio Tax-Free Bond Fund (“Ohio Tax-Free Bond Fund”)
Touchstone Small Company Fund (“Small Company Fund”)
Touchstone Value Fund (“Value Fund”)
Each Fund is diversified, with the exception of the International Growth Opportunities Fund, the Large Cap Focused Fund, the Large Cap Fund, the Large Company Growth Fund and the Ohio Tax-Free Bond Fund, which are non-diversified.
The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
Institutional | |||||
Class A | Class C | Class Y | Class | Class R6 | |
Balanced Fund | X | X | X | ||
International Equity Fund | X | X | X | X | |
International Growth Opportunities Fund | X | X | X | X | |
International Small Cap Fund | X | X | X | X | |
Large Cap Focused Fund | X | X | X | X | |
Large Cap Fund | X | X | X | X | |
Large Company Growth Fund | X | X | X | X | |
Ohio Tax-Free Bond Fund | X | X | X | X | |
Small Company Fund | X | X | X | X | X |
Value Fund | X | X | X | X |
The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment goal, policies, and strategies along with information on the classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements —U.S. generally accepted accounting principles (“U.S. GAAP”) defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their fair value. The Funds define the term “market value”, as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
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Notes to Financial Statements(Unaudited) (Continued)
· | Level 1 – quoted prices in active markets for identical securities |
· | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
· | Level 3 – significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The aggregate value by input level, as of December 31, 2019, for each Fund’s investments, is included in each Fund’s Portfolio of Investments, which also includes a breakdown of the Fund’s investments by geographic, portfolio or sector allocation. The Funds did not hold or transfer any Level 3 categorized securities during the six months ended December 31, 2019.
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The Funds’ portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (“NYSE”) (currently 4:00 p.m., Eastern Time or at the time as of which the NYSE establishes official closing prices). Portfolio securities traded on stock exchanges are valued at the last reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”) or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Options and futures are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price on the valuation date and are categorized in Level 1.Shares of mutual funds in which the Funds invest are valued at their respective net asset value (“NAV”) as reported by the underlying funds and are categorized in Level 1.
Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. Investments in asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche, and are generally categorized in Level 2. Debt securities with remaining maturities of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which fair value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and is generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund, to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV. The Funds may use fair value pricing under the following circumstances, among others:
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Notes to Financial Statements(Unaudited) (Continued)
· | If the value of a security has been materially affected by events occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded. |
· | If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. |
· | If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading. |
· | If the validity of market quotations is not reliable. |
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Board and are generally categorized in Level 3.
Collateralized Loan Obligations —The Balanced Fund may invest in collateralized loan obligations (“CLOs”). CLOs are types of asset-backed securities. A CLO is an entity that is backed by syndicated bank loans. The cash flows of the CLO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CLO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive higher ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.
Investment companies —The Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter (“OTC”). An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing and marketing, as well as their share of the Fund’s fees and expenses.
Warrants —The Funds can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the holder the right to buy stock, typically from the issuer. The warrant specifies the amount of underlying stock, the purchase (or “exercise”) price, and the date the warrant expires. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Funds have no obligation to exercise the warrant and buy the stock.
Futures Contracts —The Balanced Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund’s exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund’s return. In order to avoid leveraging and related risks, when the Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, in a segregated account with its custodian or otherwise “cover” its position in a manner consistent with the
71
Notes to Financial Statements(Unaudited) (Continued)
1940 Act, or the rules of the Securities and Exchange Commission (the “SEC”) or interpretations thereunder. Collateral equal to the current fair value of the futures position will be determined on a daily basis.
When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
As of December 31, 2019, the Balanced Fund did not hold any futures contracts.
Foreign currency translation —The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
(1) | market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and |
(2) | purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
Real Estate Investment Trusts —The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks associated with investments in REITs include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Pay-In-Kind (“PIK”) Bonds –PIK bonds are securities that, at the issuer’s option, pay interest in either cash or additional securities for a specified period. PIK bonds, like zero coupon bonds, are designed to give an issuer flexibility in managing cash flow. PIK bonds are expected to reflect the market value of the underlying debt plus an amount representing accrued interest since the last payment. PIK bonds are usually less volatile than zero coupon bonds, but more volatile than cash pay securities.
Derivative instruments and hedging activities —The Balanced Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and foreign exchange contracts, and typically contains, among other things, collateral posting terms and master netting provisions in the event of a default or termination. Under an ISDA Master Agreement, a party may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables or receivables with collateral held or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting).
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Notes to Financial Statements(Unaudited) (Continued)
These default events include bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset.
When entering into a derivative transaction, a Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange-traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (forward foreign currency contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as cash deposits held at prime broker and due to prime broker, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.
Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event the Funds’ net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).
For financial reporting purposes, the Balanced Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
As of December 31, 2019, the Balanced Fund did not hold any assets and liabilities that were subject to a MNA.
The following table sets forth the effect of the Balanced Fund derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended December 31, 2019:
The Effect of Derivative Investments on the Statements of Operations | ||||||||||
for the Six Months Ended December 31, 2019 | ||||||||||
Change in | ||||||||||
Unrealized | ||||||||||
Realized Gain | Appreciation | |||||||||
(Loss) | (Depreciation) | |||||||||
Derivatives not accounted for as hedging | on | on | ||||||||
Fund | instruments under ASC 815 | Derivatives | Derivatives | |||||||
Balanced Fund | Futures-Interest Rate Contracts* | $ | (39,366 | ) | $ | — |
* Statements of Operations Location: Net realized losses on futures contracts.
Portfolio securities loaned —The Funds may lend their portfolio securities. Lending portfolio securities exposes the Funds to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested
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Notes to Financial Statements(Unaudited) (Continued)
by the Funds’ custodian into an approved short-term investment vehicle. The approved short-term investment vehicle is subject to market risk.
As of December 31, 2019, the following Funds loaned securities and received collateral as follows:
Market | Market | |||||||||||||
Value of | Value of | |||||||||||||
Securities | Collateral | Net | ||||||||||||
Fund | Security Type | Loaned* | Received** | Amount*** | ||||||||||
International Small Cap Fund | Common Stocks | $ | 3,697,869 | $ | 3,881,514 | $ | 183,645 | |||||||
Large Cap Focused Fund | Exchange-Traded Funds | 23,631,534 | 24,044,775 | 413,241 |
* The remaining contractual maturity is overnight for all securities.
** Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities.
*** Net amount represents the net amount payable due to the borrower in the event of default.
All cash collateral is received, held, and administered by the Funds’ custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral in cash equivalents.
Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on trading volumes, float, short-term interest rates and market liquidity and is shown net of fees on the Statements of Operations. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.
When-issued or delayed delivery transactions —Each Fund may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will set aside liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When the Fund has sold a security on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
Share valuation —The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the equity funds (all of the Funds except the Ohio Tax-Free Bond Fund) is equal to the NAV per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). The maximum offering price per share of Class A shares of the fixed income fund (the Ohio Tax-Free Bond Fund) is equal to the NAV per share plus a sales load equal to 2.04% of the NAV (or 2.00% of the offering price). There is no sales load on fund purchases of Class A shares when aggregate purchases in all Touchstone funds equal the maximum breakpoint which is at least $1 million for equity funds or $500,000 for fixed income funds. The maximum offering price per share of Classes C, Y, Institutional Class and R6 shares of the Funds is equal to the NAV per share.
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Notes to Financial Statements(Unaudited) (Continued)
The redemption price per share of each class of shares of the Funds is generally equal to the NAV per share. However, Class A redemptions that were part of a no-load purchase due to the aggregate purchase amount in all Touchstone Funds equaling at least the maximum breakpoint where a Finder’s Fee was paid may be subject to a contingent deferred sales charge (“CDSC”) of up to 1.00% or 0.50% for equity or fixed income funds, respectively, if redeemed within a one-year period from the date of purchase. Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00% if redeemed within a one-year period from the date of purchase. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed.
Investment income —Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issue discounts and market premiums on debt securities are accreted/amortized to interest income over the life of the security or to the appropriate call date, as applicable, with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.
Distributions to shareholders —Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. Each Fund, except the Balanced Fund, Ohio Tax-Free Bond Fund and the Value Fund, declares and distributes net investment income, if any, annually, as a dividend to shareholders. The Balanced Fund and Value Fund declare and distribute net investment income, if any, quarterly as a dividend to shareholders. The Ohio Tax-Free Bond Fund declares distributions from net investment income on a daily basis and distributes as a dividend to shareholders on a monthly basis. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the Funds’ net investment income from investments in underlying funds is affected by the timing of dividend declarations by the underlying funds.
Allocations —Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds in the Trust, and, if applicable, Touchstone Funds Group Trust, Touchstone Institutional Funds Trust, and Touchstone Variable Series Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.
Security transactions —Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
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Notes to Financial Statements(Unaudited) (Continued)
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended December 31, 2019:
International | ||||||||||||||||
International | Growth | International | ||||||||||||||
Balanced | Equity | Opportunities | Small Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 62,456,096 | $ | 35,893,281 | $ | 13,077,043 | $ | 83,883,051 | ||||||||
Proceeds from sales and maturities | $ | 66,998,042 | $ | 47,319,591 | $ | 14,281,035 | $ | 135,488,236 |
Large | Ohio | |||||||||||||||
Large Cap | Company | Tax-Free | ||||||||||||||
Focused | Large Cap | Growth | Bond | |||||||||||||
Fund* | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 229,131,559 | $ | 18,061,364 | $ | 9,893,374 | $ | 11,204,039 | ||||||||
Proceeds from sales and maturities | $ | 252,114,058 | $ | 29,007,849 | $ | 56,862,860 | $ | 9,544,665 |
Small | ||||||||||||||||
Company | Value | |||||||||||||||
Fund | Fund | |||||||||||||||
Purchases of investment securities | $ | 329,168,496 | $ | 82,529,839 | ||||||||||||
Proceeds from sales and maturities | $ | 474,764,568 | $ | 79,261,082 |
* Large Cap Focused Fund had redemptions-in-kind which resulted in redemptions out of the Fund of $116,910,394 and is excluded from the proceeds from sales and maturities. The redemptions were comprised of securities and cash in the amount of $101,763,340 and $15,147,054, respectively.
For the six months ended December 31, 2019, purchases and proceeds from sales and maturities in U.S. Government Securities were $240,449,285 and $227,599,035, respectively, for the Balanced Fund.There were no purchases or proceeds from sales and maturities of U.S. Government securities by the other Funds for the six months ended December 31, 2019.
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also officers of Touchstone Advisors, Inc. (the “Advisor”),Touchstone Securities, Inc. (the “Underwriter”), or The Bank of New York Mellon, the Sub-Administrator to the Funds, and BNY Mellon Investment Servicing (U.S.) Inc., the Transfer Agent to the Funds (collectively referenced to herein as “BNY Mellon”). Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned subsidiaries of Western & Southern Financial Group, Inc. (“Western & Southern”).
On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each Board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees.The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $106,269 for the six months ended December 31, 2019.
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under the terms of an advisory agreement (the “Advisory Agreement”). Under the Advisory Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.
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Notes to Financial Statements(Unaudited) (Continued)
Balanced Fund | 0.55% on the first $200 million |
0.50% on the next $200 million | |
0.45% on the next $600 million | |
0.40% on the next $1 billion | |
0.35% on such assets over $2 billion | |
International Equity Fund | 0.70% on the first $500 million |
0.65% on the next $300 million | |
0.60% on the next $200 million | |
0.50% on the next $1 billion | |
0.40% on such assets over $2 billion | |
International Growth Opportunities Fund | 0.80% |
International Small Cap Fund | 0.95% on the first $300 million |
0.90% on the next $200 million | |
0.85% on the next $250 million | |
0.80% on the next $250 million | |
0.75% on the next $500 million | |
0.70% on the next $500 million | |
0.65% on such assets over $2 billion | |
Large Cap Focused Fund | 0.70% on the first $500 million |
0.65% on the next $300 million | |
0.60% on the next $200 million | |
0.50% on the next $1 billion | |
0.40% on such assets over $2 billion | |
Large Cap Fund | 0.60% on the first $500 million |
0.54% on the next $500 million | |
0.50% on such assets over $1 billion | |
Large Company Growth Fund* | 0.60% |
Ohio Tax-Free Bond Fund | 0.50% on the first $100 million |
0.45% on the next $100 million | |
0.40% on the next $100 million | |
0.375% on such assets over $300 million | |
Small Company Fund | 0.70% on the first $500 million |
0.65% on the next $300 million | |
0.60% on the next $200 million | |
0.50% on the next $1 billion | |
0.40% on such assets over $2 billion | |
Value Fund | 0.65% |
* Prior to September 1, 2019, the Fund paid 0.75% on the first $500 million, 0.725% on the next $1.5 billion and 0.70% on such assets over $2 billion.
The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):
Barrow, Hanley, Mewhinney & Strauss, LLC | London Company of Virginia d/b/a The London Company |
Value Fund | Large Cap Fund |
Copper Rock Capital Partners LLC | Fort Washington Investment Advisors, Inc.* |
International Small Cap Fund | Balanced Fund |
International Equity Fund | |
DSM Capital Partners LLC | Large Cap Focused Fund |
International Growth Opportunities Fund | Ohio Tax-Free Bond Fund |
Large Company Growth Fund | Small Company Fund |
*Affiliate of the Advisor and wholly-owned subsidiary of Western & Southern.
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Notes to Financial Statements(Unaudited) (Continued)
The Advisor pays sub-advisory fees to each Sub-Advisor from its advisory fee.
The Advisor entered into an expense limitation agreement (the “Expense Limitation Agreement”) to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transaction and investment related expenses, including expenses associated with the Funds’ liquidity providers; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not incurred in the ordinary course of business. The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to waive a portion of its fees, and to reimburse certain fund expenses in order to maintain the following expense limitations for the Funds:
Institutional | ||||||||||||||||||||
Class A | Class C | Class Y | Class | Class R6 | ||||||||||||||||
Balanced Fund | 1.01 | % | 1.78 | % | 0.81 | % | — | — | ||||||||||||
International Equity Fund | 1.36 | % | 2.49 | % | 0.99 | % | 0.89 | % | — | |||||||||||
International Growth Opportunities Fund | 1.24 | % | 1.99 | % | 0.99 | % | 0.89 | % | — | |||||||||||
International Small Cap Fund | 1.55 | % | 2.30 | % | 1.30 | % | 1.18 | % | — | |||||||||||
Large Cap Focused Fund* | 1.00 | % | 1.79 | % | 0.72 | % | 0.69 | % | — | |||||||||||
Large Cap Fund | 1.03 | % | 1.78 | % | 0.78 | % | 0.68 | % | — | |||||||||||
Large Company Growth Fund** | 1.04 | % | 1.79 | % | 0.79 | % | 0.69 | % | — | |||||||||||
Ohio Tax-Free Bond Fund | 0.85 | % | 1.60 | % | 0.60 | % | 0.55 | % | — | |||||||||||
Small Company Fund*** | 1.22 | % | 1.95 | % | 0.89 | % | 0.79 | % | 0.79 | % | ||||||||||
Value Fund | 1.08 | % | 1.83 | % | 0.83 | % | 0.68 | % | — |
*Prior to October 30, 2019, the expense limitation for Institutional Class shares was 0.65%.
**Prior to September 1, 2019, the expense limitations for Classes A, C, Y and Institutional Class shares were 1.23%, 1.98%, 0.98% and 0.88%, respectively.
***Prior to October 30, 2019, the expense limitation for R6 Class shares was 0.73%.
These expense limitations will remain in effect for all Funds through at least October 29, 2020. The Expense Limitation Agreement can be terminated by a vote of the Funds’ Board if it deems the termination to be beneficial to the Funds’ shareholders.
During the six months ended December 31, 2019, the Advisor or its affiliates waived investment advisory fees, administration fees or other operating expenses, including distribution fees, of the Funds as follows:
Investment | ||||||||||||||||
Advisory | Other Operating | |||||||||||||||
Fees | Administration | Expenses | ||||||||||||||
Fund | Waived | Fees Waived | Waived | Total | ||||||||||||
Balanced Fund | $ | — | $ | — | $ | 127,786 | $ | 127,786 | ||||||||
International Equity Fund | — | 78,409 | 17,249 | 95,658 | ||||||||||||
International Growth Opportunities Fund | 40,424 | 24,628 | 28,565 | 93,617 | ||||||||||||
International Small Cap Fund | — | 74,410 | 58,435 | 132,845 | ||||||||||||
Large Cap Focused Fund | — | 887,215 | 163,279 | 1,050,494 | ||||||||||||
Large Cap Fund | — | 188,109 | 25,457 | 213,566 | ||||||||||||
Large Company Growth Fund | — | 87,410 | 69,371 | 156,781 | ||||||||||||
Ohio Tax-Free Bond Fund | 32,799 | 35,929 | 18,976 | 87,704 | ||||||||||||
Small Company Fund | — | 481,229 | 44,878 | 526,107 | ||||||||||||
Value Fund | 8,929 | 254,799 | 78,156 | 341,884 |
Under the terms of the Expense Limitation Agreement, the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the date on which the Advisor reduced its compensation or assumed expenses for the Funds. The Fund will make repayments to the Advisor only if such repayment does not cause the Fund’s operating expenses (after the repayment is
78
Notes to Financial Statements(Unaudited) (Continued)
taken into account) to exceed the Fund’s expense limit in place when such amounts were waived or reimbursed by the Advisor and the Fund’s current expense limitation.
As of December 31, 2019, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:
Expires | Expires | Expires | Expires | Expires | ||||||||||||||||||||
on or | on or | on or | on or | on or | ||||||||||||||||||||
before | before | before | before | before | ||||||||||||||||||||
June 30, | November 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||
Fund | 2020 | 2020 | 2021 | 2022 | 2023 | Total | ||||||||||||||||||
Balanced Fund | $ | — | $ | 3,422 | $ | 16,819 | $ | 36,339 | $ | 18,247 | $ | 74,827 | ||||||||||||
International Equity Fund | — | 33,634 | 98,681 | 158,366 | 95,294 | 385,975 | ||||||||||||||||||
International Growth Opportunities Fund | 91,134 | — | 106,252 | 185,823 | 91,492 | 474,701 | ||||||||||||||||||
International Small Cap Fund | 56,657 | — | 72,874 | 142,116 | 123,379 | 395,026 | ||||||||||||||||||
Large Cap Focused Fund | — | 90,753 | 1,304,229 | 2,201,447 | 1,046,360 | 4,642,789 | ||||||||||||||||||
Large Cap Fund | 216,268 | — | 449,854 | 440,511 | 204,254 | 1,310,887 | ||||||||||||||||||
Large Company Growth Fund | 140,243 | — | 249,815 | 259,049 | 152,903 | 802,010 | ||||||||||||||||||
Ohio Tax-Free Bond Fund | 81,532 | — | 129,632 | 143,581 | 77,292 | 432,037 | ||||||||||||||||||
Small Company Fund | — | 29,439 | 596,684 | 1,008,474 | 520,899 | 2,155,496 | ||||||||||||||||||
Value Fund | 315,506 | — | 680,915 | 645,575 | 333,499 | 1,975,495 |
The Advisor did not recoup any amounts it previously waived or reimbursed during the six months ended December 31, 2019.
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to and filings with the SEC and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.
For its services, the Advisor’s annual administrative fee is:
0.145% on the first $20 billion of the aggregate average daily net assets;
0.11% on the next $10 billion of aggregate average daily net assets;
0.09% on the next $10 billion of aggregate average daily net assets; and
0.07% on the aggregate average daily net assets over $40 billion.
The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.
The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.
79
Notes to Financial Statements(Unaudited) (Continued)
The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares pays an annual fee not to exceed 0.25% of average daily net assets that are attributable to Class A shares. Under the Class C plan, each Fund offering Class C shares pays an annual fee not to exceed 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee).
UNDERWRITING AGREEMENT
The Underwriter is the Funds’ principal underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting Agreement between the Trust and the Underwriter, the Underwriter earned underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Underwriter and the Advisor, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Underwriter and its affiliate during the six months ended December 31, 2019:
Fund | Amount | |||
Balanced Fund | $ | 12,112 | ||
International Equity Fund | 1,456 | |||
International Growth Opportunities Fund | 134 | |||
International Small Cap Fund | 257 | |||
Large Cap Focused Fund | 7,125 | |||
Large Cap Fund | 691 | |||
Large Company Growth Fund | 96 | |||
Ohio Tax-Free Bond Fund | 179 | |||
Small Company Fund | 5,398 | |||
Value Fund | 1,655 |
In addition, the Underwriter collected CDSC on the redemption of Class A and Class C shares of the Funds listed below during the six months ended December 31, 2019:
Fund | Class A | Class C | ||||||
Balanced Fund | $ | 25 | $ | 519 | ||||
International Equity Fund | 39 | 64 | ||||||
International Small Cap Fund | — | 30 | ||||||
Large Cap Focused Fund | 161 | 329 | ||||||
Small Company Fund | 136 | 364 |
INTERFUND TRANSACTIONS
Pursuant to Rule 17a-7 under the 1940 Act, the Funds may engage in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common Trustees and/or
80
Notes to Financial Statements(Unaudited) (Continued)
common Officers. During the six months ended December 31, 2019, the Funds did not engage in any Rule 17a-7 transactions.
5. Liquidity
ReFlow Fund LLC —The Funds may participate in the ReFlow Fund LLC liquidity program (“ReFlow”), which is designed to provide an alternative liquidity source for funds experiencing redemptions. In order to pay cash to shareholders who redeem their shares on a given day, a fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money. ReFlow provides participating funds with another source of cash by standing ready to purchase shares from a fund up to the amount of the fund’s net redemptions on a given day, cumulatively limited to 3% of the outstanding voting shares of a Fund. ReFlow then generally redeems those shares (in cash or in-kind) when the Fund experiences net sales, at the end of a maximum holding period determined by ReFlow, or at other times at ReFlow’s discretion. In return for this service, the Fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds.
During the six months ended December 31, 2019, the Large Cap Focused Fund utilized Reflow. Reflow purchased 2,700,455 shares of the Large Cap Focused Fund during the period and had redemptions-in-kind of $101,763,340. The resulting fee is recorded in Other expenses on the Statements of Operations.
Interfund Lending —Pursuant to an Exemptive Order issued by the SEC on March 28, 2017, the Funds, along with certain other funds in the Touchstone Fund Complex, may participate in an interfund lending program. The interfund lending program provides an alternate credit facility that allows the Funds to lend to or borrow from other participating funds in the Touchstone Fund Complex, subject to the conditions of the Exemptive Order. The Funds may not borrow under the facility for leverage purposes and the loans’ duration may be no more than 7 days.
During the six months ended December 31, 2019, the following Funds participated as a borrower in the interfund lending program. The daily average amount borrowed, weighted average interest rate and interest expense were as follows:
Daily Average | Weighted Average | |||||||||||
Amount | Interest | Interest | ||||||||||
Fund | Borrowed | Rate | Expense* | |||||||||
International Small Cap Fund | $ | 349,047 | 2.51 | % | $ | 4,417 | ||||||
Large Cap Focused Fund | 666,813 | 2.42 | % | 8,208 | ||||||||
Large Company Growth Fund | 248,363 | 2.31 | % | 2,939 |
*Included in Other expenses in the Statements of Operations.
6. Federal Tax Information
Federal Income Tax —It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. It is each Fund’s policy to distribute all of its taxable and tax-exempt income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid is as follows:
81
Notes to Financial Statements(Unaudited) (Continued)
Balanced Fund | International Equity Fund | ||||||||||||||||||
Seven | Seven | ||||||||||||||||||
Year Ended | Months Ended | Year Ended | Year Ended | Months Ended | Year Ended | ||||||||||||||
June 30, | June 30, | November 30, | June 30, | June 30, | November 30, | ||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||
From ordinary income | $ | 5,073,305 | $ | 2,415,681 | $ | 3,724,887 | $ | 2,842,238 | $ | 2,308,837 | $ | 1,250,578 | |||||||
From long-term capital gains | 15,844,335 | 15,494,463 | 2,124,199 | 17,560,388 | 7,102,450 | — | |||||||||||||
Total Distributions | $ | 20,917,640 | $ | 17,910,144 | $ | 5,849,086 | $ | 20,402,626 | $ | 9,411,287 | $ | 1,250,578 |
International Growth Opportunities Fund | International Small Cap Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
From ordinary income | $ | 425,814 | $ | 372,285 | $ | 3,700,412 | $ | 7,979,769 | ||||||||
From long-term capital gains | 4,272,059 | 149,175 | 16,613,583 | 1,865,799 | ||||||||||||
Total Distributions | $ | 4,697,873 | $ | 521,460 | $ | 20,313,995 | $ | 9,845,568 |
Large Cap Focused Fund | Large Cap Fund | |||||||||||||||||||
Seven | ||||||||||||||||||||
Year Ended | Months Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
June 30, | June 30, | November 30, | June 30, | June 30, | ||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | ||||||||||||||||
From ordinary income | $ | 22,680,841 | $ | 4,002,079 | $ | 24,480,711 | $ | 2,699,506 | $ | 2,347,689 | ||||||||||
From long-term capital gains | 152,239,077 | 265,660,471 | 115,781,936 | — | — | |||||||||||||||
Total Distributions | $ | 174,919,918 | $ | 269,662,550 | $ | 140,262,647 | $ | 2,699,506 | $ | 2,347,689 |
Large Company Growth Fund | Ohio Tax-Free Bond Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
From ordinary income | $ | 716,305 | $ | 1,615,959 | $ | 615 | $ | 640 | ||||||||
From tax-exempt income | — | — | 1,353,201 | 1,338,760 | ||||||||||||
From long-term capital gains | 12,955,949 | 4,705,569 | — | — | ||||||||||||
Total Distributions | $ | 13,672,254 | $ | 6,321,528 | $ | 1,353,816 | $ | 1,339,400 |
Small Company Fund | Value Fund | |||||||||||||||||||
Seven | ||||||||||||||||||||
Year Ended | Months Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
June 30, | June 30, | November 30, | June 30, | June 30, | ||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | ||||||||||||||||
From ordinary income | $ | 34,623,870 | $ | 19,425,568 | $ | — | $ | 9,739,930 | $ | 7,015,940 | ||||||||||
From long-term capital gains | 110,406,903 | 85,276,646 | 89,216,186 | 31,961,207 | 27,716,248 | |||||||||||||||
Total Distributions | $ | 145,030,773 | $ | 104,702,214 | $ | 89,216,186 | $ | 41,701,137 | $ | 34,732,188 |
82
Notes to Financial Statements(Unaudited) (Continued)
The following information is computed on a tax basis for each item as of June 30, 2019:
International | ||||||||||||||||
International | Growth | International | ||||||||||||||
Balanced | Equity | Opportunities | Small Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 200,302,078 | $ | 146,263,986 | $ | 28,103,102 | $ | 192,380,614 | ||||||||
Gross unrealized appreciation on investments | 140,283,325 | 36,729,656 | 7,859,495 | 33,104,569 | ||||||||||||
Gross unrealized depreciation on investments | (2,217,217 | ) | (28,344,908 | ) | (804,447 | ) | (10,122,767 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 138,066,108 | 8,384,748 | 7,055,048 | 22,981,802 | ||||||||||||
Net unrealized appreciation (depreciation) on foreign currency transactions and deferred capital gains tax | — | 838 | 204 | 745 | ||||||||||||
Undistributed ordinary income | 929,717 | 1,116,936 | 2,970 | — | ||||||||||||
Qualified late-year losses | — | (264,009 | ) | — | — | |||||||||||
Capital Loss Carryforwards | — | — | (4,717,545 | ) | (12,449,455 | ) | ||||||||||
Undistributed long-term capital gains | 470,741 | 4,978 | — | — | ||||||||||||
Distributable earnings (deficit) | $ | 139,466,566 | $ | 9,243,491 | $ | 2,340,677 | $ | 10,533,092 |
Large | Large | Ohio | ||||||||||||||
Cap | Large | Company | Tax-Free | |||||||||||||
Focused | Cap | Growth | Bond | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 848,766,919 | $ | 222,220,904 | $ | 129,330,942 | $ | 44,363,092 | ||||||||
Gross unrealized appreciation on investments | 914,336,883 | 70,503,267 | 97,512,614 | 2,815,652 | ||||||||||||
Gross unrealized depreciation on investments | (30,020,849 | ) | (8,488,182 | ) | (1,542,861 | ) | (123 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 884,316,034 | 62,015,085 | 95,969,753 | 2,815,529 | ||||||||||||
Undistributed ordinary income | 7,230,685 | 1,775,246 | — | — | ||||||||||||
Qualified late-year losses | — | — | (296,089 | ) | — | |||||||||||
Other temporary differences | — | — | — | (24,497 | ) | |||||||||||
Undistributed tax-exempt income | — | — | — | 6,471 | ||||||||||||
Undistributed long-term capital gains | 51,515,830 | 15,510,765 | 12,954,030 | 27,980 | ||||||||||||
Distributable earnings (deficit) | $ | 943,062,549 | $ | 79,301,096 | $ | 108,627,694 | $ | 2,825,483 |
Small Company | Value | |||||||
Fund | Fund | |||||||
Tax cost of portfolio investments | $ | 924,181,729 | $ | 282,186,973 | ||||
Gross unrealized appreciation on investments | 216,552,683 | 74,006,282 | ||||||
Gross unrealized depreciation on investments | (34,192,392 | ) | (18,968,107 | ) | ||||
Net unrealized appreciation (depreciation) on investments | 182,360,291 | 55,038,175 | ||||||
Qualified late-year losses | (27,552,310 | ) | (134,241 | ) | ||||
Undistributed long-term capital gains | 56,602,588 | 15,928,852 | ||||||
Distributable earnings (deficit) | $ | 211,410,569 | $ | 70,832,786 |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, investments in passive foreign investment company (“PFIC”) adjustments, basis adjustments on securities no longer treated as PFICs and nontaxable distribution basis outstanding.
83
Notes to Financial Statements(Unaudited) (Continued)
As of June 30, 2019, the Funds had the following capital loss carryforwards for federal income tax purposes:
No | No | |||||||||||
Expiration | Expiration | |||||||||||
Short Term | Long Term | Total | ||||||||||
International Growth Opportunities Fund | $ | 4,510,886 | $ | 206,659 | $ | 4,717,545 | ||||||
International Small Cap Fund | 12,449,455 | — | 12,449,455 |
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
During the year ended June 30, 2019, the following Fund utilized capital loss carryforwards:
Fund | Utilized | |||
Large Cap Fund | $ | 13,791,146 |
Under current laws, certain capital losses realized after October 31 and ordinary losses realized after December 31 may be deferred (and certain ordinary losses after October and/or December 31 may be deferred) and treated as occurring on the first day of the following fiscal year. For the year ended June 30, 2019, the Funds elected to defer the following losses:
Realized | Ordinary | |||||||||||
Fund | Capital Losses | Losses | Total | |||||||||
International Equity Fund | $ | 264,009 | $ | — | $ | 264,009 | ||||||
Large Company Growth Fund | — | 296,089 | 296,089 | |||||||||
Small Company Fund | 26,875,724 | 676,586 | 27,552,310 | |||||||||
Value Fund | 134,241 | — | 134,241 |
The Funds have analyzed their tax positions taken or to be taken on federal income tax returns for all open tax years (tax years ended June 30, 2016 through 2019) and have concluded that no provision for income tax is required in their financial statements.
As of December 31, 2019, the Trust had the following federal tax costs resulting in net unrealized appreciation (depreciation) as follows:
Gross | Gross | ||||||||||||||||||
Unrealized | Unrealized | Gross | Gross | Net | |||||||||||||||
Federal | Appreciation | Depreciation | Unrealized | Unrealized | Unrealized | ||||||||||||||
Tax | on | on | Appreciation | Depreciation | Appreciation/ | ||||||||||||||
Fund | Cost | Investments | Investments | on Other* | on Other* | (Depreciation) | |||||||||||||
Balanced Fund | $ | 241,999,458 | $ | 127,737,862 | $ | (1,522,464 | ) | $ | — | $ | — | $ | 126,215,398 | ||||||
International Equity Fund | 135,968,118 | 25,298,342 | (12,083,556 | ) | 1,506 | (40 | ) | 13,216,252 | |||||||||||
International Growth Opportunities Fund | 28,154,056 | 7,812,143 | (529,389 | ) | 203 | — | 7,282,957 | ||||||||||||
International Small Cap Fund | 131,156,047 | 27,035,983 | (2,925,680 | ) | 979 | (1,047 | ) | 24,110,235 | |||||||||||
Large Cap Focused Fund | 965,034,485 | 847,124,517 | (11,101,295 | ) | — | — | 836,023,222 | ||||||||||||
Large Cap Fund | 226,200,951 | 88,231,977 | (2,265,281 | ) | — | — | 85,966,696 | ||||||||||||
Large Company Growth Fund | 100,730,729 | 99,844,689 | (137,745 | ) | — | — | 99,706,944 | ||||||||||||
Ohio Tax-Free Bond Fund | 45,831,722 | 3,098,351 | (2,007 | ) | — | — | 3,096,344 | ||||||||||||
Small Company Fund | 771,012,250 | 248,789,532 | (12,485,638 | ) | — | — | 236,303,894 | ||||||||||||
Value Fund | 285,893,085 | 91,813,331 | (9,230,293 | ) | — | — | 82,583,038 |
* Other includes Foreign Currency Transactions.
7. Commitments and Contingencies
The Funds indemnify the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’
84
Notes to Financial Statements(Unaudited) (Continued)
maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.
8. Principal Risks
Risks Associated with Foreign Investments —Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
Risks Associated with Sector Concentration —Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility on the Funds’ NAVs and magnified effect on the total return.
Risks Associated with Credit —An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.
Risks Associated with Interest Rate Changes —The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.
Please see the Funds’ prospectus for a complete discussion of these and other risks.
9. Fund Reorganizations
Small Company Fund Reorganization:
The shareholders of the Touchstone Small Cap Growth Fund, a series of the Trust, approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Small Cap Growth Fund to the Touchstone Small Company Fund. The tax-free reorganization took place on September 21, 2018.
85
Notes to Financial Statements(Unaudited) (Continued)
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation immediately before and after the tax-free reorganization.
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Touchstone | Touchstone | Touchstone | ||||||||||
Small Cap | Small Company | Small Company | ||||||||||
Growth Fund | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | 3,572,822 | (A) | 113,082,178 | 116,655,000 | ||||||||
Net Assets | $ | 21,326,954 | $ | 675,012,128 | $ | 696,339,082 | ||||||
Net Asset Value | $ | 5.97 | (A) | $ | 5.97 | $ | 5.97 | |||||
Class C | ||||||||||||
Shares | 1,917,820 | (B) | 29,092,599 | 31,010,419 | ||||||||
Net Assets | $ | 6,665,795 | $ | 101,117,364 | $ | 107,783,159 | ||||||
Net Asset Value | $ | 3.48 | (B) | $ | 3.48 | $ | 3.48 | |||||
Class Y | ||||||||||||
Shares | 11,284,528 | (C) | 65,216,246 | 76,500,774 | ||||||||
Net Assets | $ | 73,494,700 | $ | 424,748,096 | $ | 498,242,796 | ||||||
Net Asset Value | $ | 6.51 | (C) | $ | 6.51 | $ | 6.51 | |||||
Institutional Class | ||||||||||||
Shares | 556,531 | (D) | 74,162 | 630,693 | ||||||||
Net Assets | $ | 3,625,412 | $ | 483,116 | $ | 4,108,528 | ||||||
Net Asset Value | $ | 6.51 | (D) | $ | 6.51 | $ | 6.51 | |||||
Class R6 | ||||||||||||
Shares | — | 13,592,489 | 13,592,489 | |||||||||
Net Assets | $ | — | $ | 82,888,657 | $ | 82,888,657 | ||||||
Net Asset Value | $ | — | $ | 6.10 | $ | 6.10 | ||||||
Fund Total | ||||||||||||
Shares Outstanding | 20,075,021 | 221,057,674 | 238,389,375 | |||||||||
Net Assets | $ | 105,112,861 | $ | 1,284,249,361 | $ | 1,389,362,222 | ||||||
Unrealized Appreciation (Depreciation) | $ | 24,471,563 | $ | 345,400,026 | $ | 369,871,589 |
(A) | Reflects a 0.8051:1 stock split which occurred on the date of reorganization, September 21, 2018. |
(B) | Reflects a 1.0348:1 reverse stock split which occurred on the date of reorganization, September 21, 2018. |
(C) | Reflects a 0.8586:1 stock split which occurred on the date of reorganization, September 21, 2018. |
(D) | Reflects a 0.8691:1 stock split which occurred on the date of reorganization, September 21, 2018. |
Assuming the reorganization had been completed on July 1, 2018, the Small Company Fund’s results of operations for the year ended June 30, 2019 would have been as follows:
Net investment loss | $ | (2,507,344 | ) | |
Net realized and unrealized gain (loss) on investments | $ | (10,037,911 | ) | |
Net decrease in net assets resulting from operations | $ | (12,545,255 | ) |
Because the combined investment portfolios have been managed as a single portfolio since the reorganization was completed, it is not practical to separate the amounts of revenue and earnings to the Small Company Fund that have been included in its statement of operations since the reorganization.
10. Subsequent Events
Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date the financial statements were issued. There were no subsequent events that necessitated recognition or disclosure in the Funds’ financial statements.
86
Proxy Voting Guidelines and Proxy Voting Records
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30, which will be filed by August 31 of that year, is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.
Quarterly Portfolio Disclosure
Each Fund’s holdings as of the end of the third month of every fiscal quarter will be disclosed on Form N-PORT within 60 days of the end of the fiscal quarter. The complete listing of each Fund’s portfolio holdings is available on the Commission’s website and will be made available to shareholders upon request by calling 1.800.543.0407.
Schedule of Shareholder Expenses
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, such as sales charges (loads); and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2019 through December 31, 2019).
Actual Expenses
The first line for each share class of a Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six Months Ended December 31, 2019” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class of a Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class of a Fund in the table below is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
December 31, | July 1, | December 31, | December 31, | |||||||||||||||
2019 | 2019 | 2019 | 2019* | |||||||||||||||
Touchstone Balanced Fund | ||||||||||||||||||
Class A | Actual | 1.01 | % | $ | 1,000.00 | $ | 1,078.60 | $ | 5.28 | |||||||||
Class A | Hypothetical | 1.01 | % | $ | 1,000.00 | $ | 1,020.06 | $ | 5.13 | |||||||||
Class C | Actual | 1.78 | % | $ | 1,000.00 | $ | 1,074.50 | $ | 9.28 | |||||||||
Class C | Hypothetical | 1.78 | % | $ | 1,000.00 | $ | 1,016.19 | $ | 9.02 | |||||||||
Class Y | Actual | 0.81 | % | $ | 1,000.00 | $ | 1,080.30 | $ | 4.24 | |||||||||
Class Y | Hypothetical | 0.81 | % | $ | 1,000.00 | $ | 1,021.06 | $ | 4.12 | |||||||||
Touchstone International Equity Fund | ||||||||||||||||||
Class A | Actual | 1.30 | % | $ | 1,000.00 | $ | 1,080.50 | $ | 6.81 | |||||||||
Class A | Hypothetical | 1.30 | % | $ | 1,000.00 | $ | 1,018.59 | $ | 6.60 | |||||||||
Class C | Actual | 2.49 | % | $ | 1,000.00 | $ | 1,074.20 | $ | 12.98 | |||||||||
Class C | Hypothetical | 2.49 | % | $ | 1,000.00 | $ | 1,012.62 | $ | 12.60 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,082.10 | $ | 5.18 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.16 | $ | 5.03 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,082.50 | $ | 4.66 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.66 | $ | 4.52 | |||||||||
Touchstone International Growth Opportunities Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,054.50 | $ | 6.40 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.29 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 1,050.60 | $ | 10.26 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.13 | $ | 10.08 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,055.60 | $ | 5.12 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.16 | $ | 5.03 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,056.90 | $ | 4.60 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.66 | $ | 4.52 | |||||||||
Touchstone International Small Cap Fund | ||||||||||||||||||
Class A | Actual | 1.56 | % | $ | 1,000.00 | $ | 1,039.30 | $ | 8.00 | ** | ||||||||
Class A | Hypothetical | 1.56 | % | $ | 1,000.00 | $ | 1,017.29 | $ | 7.91 | ** | ||||||||
Class C | Actual | 2.31 | % | $ | 1,000.00 | $ | 1,036.20 | $ | 11.83 | ** | ||||||||
Class C | Hypothetical | 2.31 | % | $ | 1,000.00 | $ | 1,013.52 | $ | 11.69 | ** | ||||||||
Class Y | Actual | 1.31 | % | $ | 1,000.00 | $ | 1,041.20 | $ | 6.72 | ** | ||||||||
Class Y | Hypothetical | 1.31 | % | $ | 1,000.00 | $ | 1,018.55 | $ | 6.65 | ** | ||||||||
Institutional Class | Actual | 1.19 | % | $ | 1,000.00 | $ | 1,041.60 | $ | 6.11 | ** | ||||||||
Institutional Class | Hypothetical | 1.19 | % | $ | 1,000.00 | $ | 1,019.15 | $ | 6.04 | ** | ||||||||
Touchstone Large Cap Focused Fund | ||||||||||||||||||
Class A | Actual | 1.00 | % | $ | 1,000.00 | $ | 1,107.60 | $ | 5.32 | *** | ||||||||
Class A | Hypothetical | 1.00 | % | $ | 1,000.00 | $ | 1,020.09 | $ | 5.10 | *** | ||||||||
Class C | Actual | 1.82 | % | $ | 1,000.00 | $ | 1,102.90 | $ | 9.63 | *** | ||||||||
Class C | Hypothetical | 1.82 | % | $ | 1,000.00 | $ | 1,015.98 | $ | 9.23 | *** | ||||||||
Class Y | Actual | 0.75 | % | $ | 1,000.00 | $ | 1,108.80 | $ | 3.98 | *** | ||||||||
Class Y | Hypothetical | 0.75 | % | $ | 1,000.00 | $ | 1,021.36 | $ | 3.82 | *** | ||||||||
Institutional Class | Actual | 0.69 | % | $ | 1,000.00 | $ | 1,109.10 | $ | 3.68 | *** | ||||||||
Institutional Class | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.65 | $ | 3.53 | *** | ||||||||
Touchstone Large Cap Fund | ||||||||||||||||||
Class A | Actual | 1.03 | % | $ | 1,000.00 | $ | 1,085.20 | $ | 5.40 | |||||||||
Class A | Hypothetical | 1.03 | % | $ | 1,000.00 | $ | 1,019.96 | $ | 5.23 | |||||||||
Class C | Actual | 1.78 | % | $ | 1,000.00 | $ | 1,080.90 | $ | 9.31 | |||||||||
Class C | Hypothetical | 1.78 | % | $ | 1,000.00 | $ | 1,016.19 | $ | 9.02 | |||||||||
Class Y | Actual | 0.78 | % | $ | 1,000.00 | $ | 1,086.20 | $ | 4.09 | |||||||||
Class Y | Hypothetical | 0.78 | % | $ | 1,000.00 | $ | 1,021.22 | $ | 3.96 | |||||||||
Institutional Class | Actual | 0.68 | % | $ | 1,000.00 | $ | 1,087.10 | $ | 3.57 | |||||||||
Institutional Class | Hypothetical | 0.68 | % | $ | 1,000.00 | $ | 1,021.72 | $ | 3.46 |
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Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
December 31, | July 1, | December 31, | December 31, | |||||||||||||||
2019 | 2019 | 2019 | 2019* | |||||||||||||||
Touchstone Large Company Growth Fund | ||||||||||||||||||
Class A | Actual | 1.10 | % | $ | 1,000.00 | $ | 1,102.00 | $ | 5.83 | |||||||||
Class A | Hypothetical | 1.10 | % | $ | 1,000.00 | $ | 1,019.59 | $ | 5.60 | |||||||||
Class C | Actual | 1.85 | % | $ | 1,000.00 | $ | 1,097.90 | $ | 9.77 | |||||||||
Class C | Hypothetical | 1.85 | % | $ | 1,000.00 | $ | 1,015.82 | $ | 9.39 | |||||||||
Class Y | Actual | 0.86 | % | $ | 1,000.00 | $ | 1,103.40 | $ | 4.54 | |||||||||
Class Y | Hypothetical | 0.86 | % | $ | 1,000.00 | $ | 1,020.82 | $ | 4.36 | |||||||||
Institutional Class | Actual | 0.76 | % | $ | 1,000.00 | $ | 1,104.00 | $ | 4.00 | |||||||||
Institutional Class | Hypothetical | 0.76 | % | $ | 1,000.00 | $ | 1,021.33 | $ | 3.84 | |||||||||
Touchstone Ohio Tax-Free Bond Fund | ||||||||||||||||||
Class A | Actual | 0.85 | % | $ | 1,000.00 | $ | 1,018.80 | $ | 4.31 | |||||||||
Class A | Hypothetical | 0.85 | % | $ | 1,000.00 | $ | 1,020.86 | $ | 4.32 | |||||||||
Class C | Actual | 1.60 | % | $ | 1,000.00 | $ | 1,015.00 | $ | 8.10 | |||||||||
Class C | Hypothetical | 1.60 | % | $ | 1,000.00 | $ | 1,017.09 | $ | 8.11 | |||||||||
Class Y | Actual | 0.60 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 3.05 | |||||||||
Class Y | Hypothetical | 0.60 | % | $ | 1,000.00 | $ | 1,022.12 | $ | 3.05 | |||||||||
Institutional Class | Actual | 0.55 | % | $ | 1,000.00 | $ | 1,020.30 | $ | 2.79 | |||||||||
Institutional Class | Hypothetical | 0.55 | % | $ | 1,000.00 | $ | 1,022.37 | $ | 2.80 | |||||||||
Touchstone Small Company Fund | ||||||||||||||||||
Class A | Actual | 1.15 | % | $ | 1,000.00 | $ | 1,056.60 | $ | 5.95 | |||||||||
Class A | Hypothetical | 1.15 | % | $ | 1,000.00 | $ | 1,019.36 | $ | 5.84 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 1,052.90 | $ | 10.06 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.33 | $ | 9.88 | |||||||||
Class Y | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,058.80 | $ | 4.61 | |||||||||
Class Y | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.66 | $ | 4.52 | |||||||||
Institutional Class | Actual | 0.79 | % | $ | 1,000.00 | $ | 1,058.90 | $ | 4.09 | |||||||||
Institutional Class | Hypothetical | 0.79 | % | $ | 1,000.00 | $ | 1,021.17 | $ | 4.01 | |||||||||
Class R6 | Actual | 0.75 | % | $ | 1,000.00 | $ | 1,061.30 | $ | 3.89 | |||||||||
Class R6 | Hypothetical | 0.75 | % | $ | 1,000.00 | $ | 1,021.37 | $ | 3.81 | |||||||||
Touchstone Value Fund | ||||||||||||||||||
Class A | Actual | 1.08 | % | $ | 1,000.00 | $ | 1,092.40 | $ | 5.68 | |||||||||
Class A | Hypothetical | 1.08 | % | $ | 1,000.00 | $ | 1,019.71 | $ | 5.48 | |||||||||
Class C | Actual | 1.83 | % | $ | 1,000.00 | $ | 1,087.90 | $ | 9.60 | |||||||||
Class C | Hypothetical | 1.83 | % | $ | 1,000.00 | $ | 1,015.94 | $ | 9.27 | |||||||||
Class Y | Actual | 0.79 | % | $ | 1,000.00 | $ | 1,093.60 | $ | 4.16 | |||||||||
Class Y | Hypothetical | 0.79 | % | $ | 1,000.00 | $ | 1,021.17 | $ | 4.01 | |||||||||
Institutional Class | Actual | 0.68 | % | $ | 1,000.00 | $ | 1,094.50 | $ | 3.58 | |||||||||
Institutional Class | Hypothetical | 0.68 | % | $ | 1,000.00 | $ | 1,021.72 | $ | 3.46 | |||||||||
*Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect one-half year period).
**Excluding liquidity provider expenses, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $7.95, $11.77, $6.67 and $6.06, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $7.86, $11.64, $6.60, and $5.99, respectively.
***Excluding liquidity provider expenses, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.14, $9.46, $3.82 and $3.50, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $4.93, $9.07, $3.66, and $3.35, respectively.
Advisory and Sub-Advisory Agreement Approval Disclosure
At a meeting held on November 21, 2019, the Board of Trustees (the “Board” or “Trustees”) of the Touchstone Strategic Trust (the “Trust”), and by a separate vote, the Independent Trustees of the Trust, approved the continuance of the Investment Advisory Agreement between the Trust and the Advisor with respect to each Fund of the Trust, and the continuance of the Sub-Advisory Agreement between the Advisor and each Fund’s respective Sub-Advisor.
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In determining whether to approve the continuation of the Investment Advisory Agreement and the Sub-Advisory Agreements, the Advisor furnished information necessary for a majority of the Independent Trustees to make the determination that the continuance of the Investment Advisory Agreement and each Sub-Advisory Agreement was in the best interests of the respective Funds and their shareholders. The information provided to the Board included: (1) industry data comparing advisory fees and total expense ratios of comparable funds; (2) comparative performance information; (3) the Advisor’s and its affiliates’ revenues and costs of providing services to the Funds; and (4) information about the Advisor’s and Sub-Advisors’ personnel. Prior to voting, the Independent Trustees reviewed the proposed continuance of the Investment Advisory Agreement and the Sub-Advisory Agreements with management and experienced independent legal counsel and received materials from such counsel discussing the legal standards for their consideration of the proposed continuation of the Investment Advisory Agreement and each Sub-Advisory Agreement. The Independent Trustees also reviewed the proposed continuation of the Investment Advisory Agreement and each Sub-Advisory Agreement with independent legal counsel in private sessions at which no representatives of management were present.
In approving the Funds’ Investment Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services provided to the Funds, including the personnel providing such services; (2) the Advisor’s compensation and profitability; (3) a comparison of fees and performance with comparable funds; (4) economies of scale; and (5) the terms of the Investment Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of Advisor Services.The Board considered the level and depth of knowledge of the Advisor, including the professional experience and qualifications of senior personnel. In evaluating the quality of services provided by the Advisor, the Board took into account its familiarity with the Advisor’s senior management through Board meetings, discussions and reports during the preceding year. The Board also took into account the Advisor’s compliance policies and procedures. The quality of administrative and other services, including the Advisor’s role in coordinating the activities of the Funds’ other service providers, was also considered. The Board also considered the Advisor’s relationship with its affiliates and the resources available to them, as well as any potential conflicts of interest.
The Board discussed the Advisor’s effectiveness in monitoring the performance of each Sub-Advisor, including the one that was an affiliate of the Advisor, and the Advisor’s timeliness in responding to performance issues. The Board considered the Advisor’s process for monitoring each of the Sub-Advisors, which includes an examination of both qualitative and quantitative elements of the Sub-Advisor’s organization, personnel, procedures, investment discipline, infrastructure and performance. The Board considered that the Advisor conducts periodic compliance due diligence of each Sub-Advisor, during which the Advisor examines a wide variety of factors, such as the financial condition of the Sub-Advisor, the quality of the Sub-Advisor’s systems, the effectiveness of the Sub-Advisor’s disaster recovery programs, trade allocation and execution procedures, compliance with the Sub-Advisor’s policies and procedures, results of regulatory examinations and any other factors that might affect the quality of services that the Sub-Advisor provides to the applicable Fund. The Board noted that the Advisor’s compliance monitoring processes also include quarterly reviews of compliance certifications, and that any issues arising from such reviews and the Advisor’s compliance visits to the Sub-Advisors are reported to the Board.
The Trustees concluded that they were satisfied with the nature, extent and quality of services provided to each Fund by the Advisor under the Investment Advisory Agreement.
Advisor’s Compensation and Profitability.The Board took into consideration the financial condition and profitability of the Advisor and its affiliates (including the Sub-Advisor to certain of the Funds) and the direct and indirect benefits derived by the Advisor and its affiliates from the Advisor’s relationship with the Funds. The information considered by the Board included operating profit margin information for the Advisor’s business as a whole. The Board noted that the Advisor had waived a portion of advisory fees and administrative fees and/or reimbursed expenses in order to limit each Fund’s net operating expenses. The Board also noted that the Advisor pays the Sub-Advisors’ sub-advisory fees out of the advisory fees the Advisor receives from the Funds. The Board reviewed the profitability of the Advisor’s relationship with the Funds both before and after tax expenses, and also considered whether the Advisor has the financial wherewithal to continue to provide services to the Funds, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board also considered that the Funds’ distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain
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Other Items(Unaudited) (Continued)
classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds.
The Board recognized that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to each Fund and the entrepreneurial risk that it assumes as Advisor. Based upon their review, the Trustees concluded that the Advisor’s and its affiliates’ level of profitability, if any, from their relationship with each Fund was reasonable and not excessive.
Expenses and Performance.The Board compared the respective advisory fees and total expense ratios for each of the Funds with various comparative data, including the median and average advisory fees and total expense ratios of each Fund’s respective peer group. The Board also considered, among other data, the Funds’ respective performance results during the six-month, twelve-month and thirty-six-month periods ended September 30, 2019, and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board also took into account current market conditions and their effect on the Funds’ performance.
The Board also considered the effect of each Fund’s growth and size on its performance and expenses. The Board noted that the Advisor had waived a portion of the fees and/or reimbursed expenses of the Funds in order to reduce those Funds’ respective operating expenses to targeted levels. The Board noted that the sub-advisory fees under the Sub-Advisory Agreement with respect to each Fund were paid by the Advisor out of the advisory fees it receives from the Fund and considered the impact of such sub-advisory fees on the profitability of the Advisor. In reviewing the respective total expense ratios and performance of each of the Funds, the Board also took into account the nature, extent and quality of the services provided to the Funds by the Advisor and its affiliates.
The Board considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:
Touchstone Balanced Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2019 was in the 1st quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone International Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and thirty-six-month periods ended September 30, 2019 was in the 5th quintile of its peer group, while the Fund’s performance for the twelve-month period ended September 30, 2019 was in the 4th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone International Growth Opportunities Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2019 was in the 5th quintile of its peer group, the Fund’s performance for the twelve-month period ended September 30, 2019 was in the 2nd quintile of its peer group, and the Fund’s performance for the thirty-six-month period ended September 30, 2019 was in the 1st quintile of its peer group. The Board took into consideration changes made to the Fund’s principal investment strategies in April 2018 to reflect an international strategy rather than a global strategy. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and
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Other Items(Unaudited) (Continued)
that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone International Small Cap Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2019 was in the 4th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2019 was in the 5th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone Large Cap Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2019 was in the 5th quintile of its peer group, the Fund’s performance for the twelve-month period ended September 30, 2019 was in the 4th quintile of its peer group, and the Fund’s performance for the thirty-six-month period ended September 30, 2019 was in the 3rd quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone Large Cap Focused Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2019 was in the 4th quintile of its peer group, the Fund’s performance for the twelve-month period ended September 30, 2019 was in the 2nd quintile of its peer group, and the Fund’s performance for the thirty-six-month period ended September 30, 2019 was in the 1st quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone Large Company Growth Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2019 was in the 4th quintile of its peer group, the Fund’s performance for the twelve-month period ended September 30, 2019 was in the 2nd quintile of its peer group, and the Fund’s performance for the thirty-six-month period ended September 30, 2019 was in the 3rd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone Ohio Tax-Free Bond Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2019 was in the 2nd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
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Other Items(Unaudited) (Continued)
Touchstone Small Company Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2019 was in the 4th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including differences between the Fund’s investment strategy and those of other funds in its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Touchstone Value Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-month period ended September 30, 2019 was in the 1st quintile of its peer group, while the Fund’s performance for the twelve- and thirty-six-month periods ended September 30, 2019 was in the 2nd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.
Economies of Scale.The Board considered the effect of each Fund’s current size and potential growth on its performance and expenses. The Board took into account management’s discussion of the Funds’ advisory fee structure. The Board considered the effective advisory fees under the Investment Advisory Agreement as a percentage of assets at different asset levels and possible economies of scale that might be realized if the assets of each Fund increase. The Board noted that the advisory fee schedules for all but three of the Funds contain breakpoints that would reduce the respective advisory fee rate on assets above specified levels as the respective Fund’s assets increased and considered the necessity of adding breakpoints with respect to each Fund that did not currently have such breakpoints in its advisory fee schedule. The Board determined that adding breakpoints at specified levels to the advisory fee schedules of the Funds that currently did not have such breakpoints was not appropriate at that time. The Board also noted that if a Fund’s assets increase over time, the Fund might realize other economies of scale if assets increase proportionally more than certain other expenses. The Board also considered the fact that, under the Investment Advisory Agreement, the advisory fee payable to the Advisor by a Fund was reduced by the total sub-advisory fee paid by the Advisor to the Fund’s Sub-Advisor.
Conclusion.In considering the renewal of the Funds’ Investment Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Trustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately with respect to each Fund. The Board reached the following conclusions regarding the Funds’ Investment Advisory Agreement with the Advisor, among others: (a) the Advisor demonstrated that it possesses the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Advisor maintains an appropriate compliance program; (c) the overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices; and (d) each Fund’s advisory fee is reasonable in light of the services received by the Fund from the Advisor and the other factors considered. Based on their conclusions, the Trustees determined with respect to each Fund that continuation of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.
In approving the Funds’ respective Sub-Advisory Agreements, the Board considered various factors with respect to each Fund and the applicable Sub-Advisory Agreement, among them: (1) the nature, extent and quality of services provided to the Fund, including the personnel providing such services; (2) the Sub-Advisor’s compensation; (3) a comparison of the sub-advisory fee and performance with comparable funds; and (4) the terms of the Sub-Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of Services Provided; Investment Personnel.The Board considered information provided by the Advisor regarding the services provided by each Sub-Advisor, including information presented periodically throughout the previous year. The Board noted the affiliation of the Sub-Advisor to certain of the Funds with the Advisor, noting any potential conflicts of interest. The Board noted that, on a periodic basis, the Board
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Other Items(Unaudited) (Continued)
meets with portfolio managers of the Sub-Advisors to discuss their respective performance and investment processes and strategies. The Board also considered each Sub-Advisor’s level of knowledge and investment style. The Board reviewed the experience and credentials of the applicable investment personnel who are responsible for managing the investment of portfolio securities with respect to the Funds. The Board also noted each Sub-Advisor’s brokerage practices.
Sub-Advisor’s Compensation, Profitability and Economies of Scale.The Board also took into consideration the financial condition of each Sub-Advisor and any indirect benefits derived by each Sub-Advisor and its affiliates from the Sub-Advisor’s relationship with the Funds. In considering the profitability to each Sub-Advisor of its relationship with the Funds, the Board noted the undertaking of the Advisor to maintain expense limitations for the Funds and also noted that the sub-advisory fees under the Sub-Advisory Agreements were paid by the Advisor out of the advisory fees that it receives under the Investment Advisory Agreement and in addition, with respect to the unaffiliated Sub-Advisors, are negotiated at arm’s-length. As a consequence, the profitability to each Sub-Advisor of its relationship with a Fund was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider the potential economies of scale in each Sub-Advisor’s management of the applicable Fund to be a substantial factor in its consideration, although the Board noted that the sub-advisory fee schedule for all but two of the Funds contained breakpoints that would reduce the sub-advisory fee rate on assets above specified levels as the applicable Fund’s assets increased.
Sub-Advisory Fees and Fund Performance.The Board considered that each Fund pays an advisory fee to the Advisor and that the Advisor pays the sub-advisory fee to the Sub-Advisor out of the advisory fee it receives from the respective Fund. The Board also compared the sub-advisory fees paid by the Advisor to fees charged by each Sub-Advisor to manage comparable institutional separate accounts, as applicable. The Board considered the amount retained by the Advisor and the sub-advisory fee paid to each Sub-Advisor with respect to the various services provided by the Advisor and the Sub-Advisor. The Board also noted that the Advisor negotiated the sub-advisory fee with each of the unaffiliated Sub-Advisors at arm’s-length. The Board reviewed the sub-advisory fee for each Fund in relation to various comparative data, including the median and average sub-advisory fees of each Fund’s peer group, and considered the following information:
Touchstone Balanced Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone International Equity Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone International Growth Opportunities Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone International Small Cap Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Large Cap Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Large Cap Focused Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Large Company Growth Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
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Other Items(Unaudited) (Continued)
Touchstone Ohio Tax-Free Bond Fund. The Trustees considered the Fund’s sub-advisory fee relative to the fees paid by other funds to their sub-advisors. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Small Company Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Value Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended September 30, 2019, as compared to each Fund’s peer group and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board also noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Sub-Advisor. The Board also was mindful of the Advisor’s ongoing monitoring of each Sub-Advisor’s performance and the measures undertaken by the Advisor to address any underperformance.
Conclusion.In considering the renewal of the Sub-Advisory Agreement with respect to each Fund, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Board reached the following conclusions regarding each Sub-Advisory Agreement, among others: (a) the Sub-Advisor is qualified to manage each Fund’s assets in accordance with the Fund’s investment goals and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices; (d) each Fund’s sub-advisory fee is reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered; and (e) the Sub-Advisor’s investment strategies are appropriate for pursuing the investment goals of each Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement with respect to each Fund was in the best interests of the Fund and its shareholders.
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We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
· | We collect only the information we need to service your account and administer our business. |
· | We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information. |
· | We make every effort to ensure the accuracy of your information. |
We Collect the Following Nonpublic Personal Information About You:
· | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and |
· | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information. |
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
· | We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business. |
· | We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information. |
· | We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document. |
· | We will not sell your personal information to anyone. |
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Strategic Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.,* and W&S Brokerage Services, Inc.
* Touchstone Securities, Inc. serves as the underwriter to the Touchstone Funds.
A Member of Western & Southern Financial Group®
The Privacy Protection Policy is not part of the Semi-Annual Report.
99
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Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
Investment Advisor
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, Massachusetts 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-54BB-TST-SAR-1912
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Touchstone Strategic Trust
By (Signature and Title)* | /s/ Jill T. McGruder | |
Jill T. McGruder, President | ||
(principal executive officer) |
Date | February 28, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Jill T. McGruder | |
Jill T. McGruder, President | ||
(principal executive officer) |
Date | February 28, 2020 |
By (Signature and Title)* | /s/ Terrie A. Wiedenheft | |
Terrie A. Wiedenheft, Controller and Treasurer | ||
(principal financial officer) |
Date | February 28, 2020 |
* Print the name and title of each signing officer under his or her signature.