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
(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: March 31
Date of reporting period: September 30, 2012
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, 100 F Street, NE, Washington, DC 20549. 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.
September 30, 2012
(Unaudited)
Semi-Annual Report
Touchstone Strategic Trust
Touchstone Diversified Small Cap Growth Fund
Touchstone Growth Opportunities Fund
Touchstone Large Cap Growth Fund
Touchstone Mid Cap Growth Fund
Table of Contents
Page | ||
Tabular Presentation of Portfolios of Investments | 3 | |
Portfolio Investments: | ||
Touchstone Diversified Small Cap Growth Fund | 4 | |
Touchstone Growth Opportunities Fund | 6 | |
Touchstone Large Cap Growth Fund | 8 | |
Touchstone Mid Cap Growth Fund | 9 | |
Statements of Assets and Liabilities | 11 - 12 | |
Statements of Operations | 13 | |
Statements of Changes in Net Assets | 14 - 15 | |
Statements of Changes in Net Assets - Capital Stock Activity | 16 - 19 | |
Financial Highlights | 20 - 28 | |
Notes to Financial Statements | 29 - 40 | |
Other Items | 41 - 43 | |
Privacy Protection Policy | 44 |
2 |
Tabular Presentation of Portfolios of Investments (Unaudited)
September 30, 2012
Touchstone Diversified Small Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Health Care | 25.5 | % | ||
Information Technology | 19.9 | |||
Consumer Discretionary | 17.4 | |||
Industrials | 15.6 | |||
Energy | 7.2 | |||
Materials | 5.1 | |||
Financials | 4.9 | |||
Consumer Staples | 2.2 | |||
Investment Funds | 11.1 | |||
Other Assets/Liabilities(Net) | (8.9 | ) | ||
Total | 100.0 | % | ||
Touchstone Growth Opportunities Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 32.4 | % | ||
Consumer Discretionary | 12.3 | |||
Industrials | 12.0 | |||
Health Care | 11.6 | |||
Energy | 9.5 | |||
Consumer Staples | 7.8 | |||
Financials | 6.3 | |||
Materials | 4.9 | |||
Investment Funds | 3.8 | |||
Other Assets/Liabilities(Net) | (0.6 | ) | ||
Total | 100.0 | % | ||
Touchstone Large Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Consumer Discretionary | 28.0 | % | ||
Information Technology | 25.6 | |||
Health Care | 14.3 | |||
Consumer Staples | 13.5 | |||
Utilities | 5.6 | |||
Financials | 5.2 | |||
Telecommunication Services | 4.1 | |||
Energy | 2.1 | |||
Investment Funds | 1.8 | |||
Other Assets/Liabilities(Net) | (0.2 | ) | ||
Total | 100.0 | % | ||
Touchstone Mid Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Consumer Discretionary | 21.3 | % | ||
Information Technology | 20.5 | |||
Health Care | 14.5 | |||
Energy | 12.1 | |||
Industrials | 11.6 | |||
Financials | 7.2 | |||
Materials | 5.9 | |||
Consumer Staples | 4.2 | |||
Investment Fund | 3.3 | |||
Other Assets/Liabilities(Net) | (0.6 | ) | ||
Total | 100.0 | % | ||
* Sector classifications are based upon the Global Industry Classification Standard (GICS®)
3 |
Portfolio of Investments
Touchstone Diversified Small Cap Growth Fund – September 30, 2012 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.8% | ||||||||
Health Care — 25.5% | ||||||||
Acorda Therapeutics, Inc.* | 16,660 | $ | 426,663 | |||||
Align Technology, Inc.* | 8,945 | 330,697 | ||||||
Auxilium Pharmaceuticals, Inc.* | 19,920 | 487,243 | ||||||
AVEO Pharmaceuticals, Inc.†* | 10,995 | 114,459 | ||||||
BioMarin Pharmaceutical, Inc.* | 11,636 | 468,582 | ||||||
DexCom, Inc.* | 15,350 | 230,710 | ||||||
Endologix, Inc.* | 17,315 | 239,293 | ||||||
Fluidigm Corp.* | 21,084 | 358,428 | ||||||
Genomic Health, Inc.* | 10,732 | 372,293 | ||||||
HMS Holdings Corp.* | 11,040 | 369,067 | ||||||
Impax Laboratories, Inc.* | 15,650 | 406,274 | ||||||
Insulet Corp.* | 19,856 | 428,492 | ||||||
NxStage Medical, Inc.* | 29,344 | 387,634 | ||||||
Onyx Pharmaceuticals, Inc.* | 9,210 | 778,245 | ||||||
RTI Biologics, Inc.* | 70,545 | 294,173 | ||||||
Salix Pharmaceuticals Ltd.* | 6,865 | 290,664 | ||||||
Spectranetics Corp. (The)* | 40,695 | 600,251 | ||||||
Thoratec Corp.* | 13,665 | 472,809 | ||||||
United Therapeutics Corp.* | 3,260 | 182,169 | ||||||
Vocera Communications, Inc.* | 9,075 | 280,508 | ||||||
Wright Medical Group, Inc.* | 10,290 | 227,512 | ||||||
7,746,166 | ||||||||
Information Technology — 19.9% | ||||||||
Ancestry.com, Inc.†* | 9,665 | 290,723 | ||||||
Aruba Networks, Inc.* | 17,001 | 382,267 | ||||||
Aspen Technology, Inc.* | 16,825 | 434,926 | ||||||
Blackbaud, Inc. | 13,385 | 320,169 | ||||||
Cadence Design Systems, Inc.* | 28,960 | 372,570 | ||||||
comScore, Inc.* | 12,647 | 192,867 | ||||||
FEI Co. | 7,045 | 376,908 | ||||||
Interxion Holding NV* | 14,235 | 323,419 | ||||||
j2 Global, Inc. | 10,765 | 353,307 | ||||||
MAXIMUS, Inc. | 8,735 | 521,654 | ||||||
Mellanox Technologies Ltd. (Israel)†* | 1,645 | 167,017 | ||||||
MICROS Systems, Inc.* | 4,888 | 240,099 | ||||||
Microsemi Corp.* | 18,007 | 361,400 | ||||||
Multi-Fineline Electronix, Inc.* | 6,717 | 151,468 | ||||||
Parametric Technology Corp.* | 11,762 | 256,412 | ||||||
Power Integrations, Inc. | 5,775 | 175,733 | ||||||
Skyworks Solutions, Inc.* | 8,961 | 211,167 | ||||||
Synaptics, Inc.†* | 7,555 | 181,471 | ||||||
SYNNEX Corp.* | 6,325 | 206,068 | ||||||
Virtusa Corp.* | 16,545 | 294,005 | ||||||
VistaPrint NV (Netherlands)†* | 6,935 | 236,830 | ||||||
6,050,480 | ||||||||
Consumer Discretionary — 17.4% | ||||||||
Big Lots, Inc.* | 11,404 | 337,330 | ||||||
BJ's Restaurants, Inc.†* | 9,064 | 411,052 | ||||||
Buffalo Wild Wings, Inc.* | 4,210 | 360,965 | ||||||
Cato Corp. (The) - Class A | 9,893 | 293,921 | ||||||
Chico's FAS, Inc. | 23,862 | 432,141 | ||||||
Cinemark Holdings, Inc. | 15,605 | 350,020 | ||||||
Coinstar, Inc.†* | 7,545 | 339,374 | ||||||
Deckers Outdoor Corp.†* | 4,848 | 177,631 | ||||||
DSW, Inc. - Class A | 4,565 | 304,577 | ||||||
Life Time Fitness, Inc.* | 7,455 | 340,992 | ||||||
Papa John's International, Inc.* | 6,930 | 370,131 | ||||||
rue21, Inc.* | 10,630 | 331,124 | ||||||
Steiner Leisure Ltd. (Bahamas)* | 5,960 | 277,438 | ||||||
Texas Roadhouse, Inc. | 21,415 | 366,196 | ||||||
True Religion Apparel, Inc. | 9,975 | 212,767 | ||||||
Vera Bradley, Inc.†* | 15,300 | 364,905 | ||||||
5,270,564 | ||||||||
Industrials — 15.6% | ||||||||
Applied Industrial Technologies, Inc. | 8,705 | 360,648 | ||||||
Belden, Inc. | 9,295 | 342,800 | ||||||
CLARCOR, Inc. | 3,870 | 172,718 | ||||||
Encore Capital Group, Inc.* | 8,113 | 229,273 | ||||||
EnerSys* | 4,870 | 171,862 | ||||||
ESCO Technologies, Inc. | 8,102 | 314,763 | ||||||
Forward Air Corp. | 9,218 | 280,319 | ||||||
Lindsay Corp. | 2,203 | 158,550 | ||||||
Middleby Corp.* | 2,852 | 329,805 | ||||||
Old Dominion Freight Line, Inc.* | 10,353 | 312,231 | ||||||
Portfolio Recovery Associates, Inc.* | 3,023 | 315,692 | ||||||
Raven Industries, Inc. | 6,393 | 188,147 | ||||||
Rollins, Inc. | 8,975 | 209,925 | ||||||
Sykes Enterprises, Inc.* | 17,510 | 235,334 | ||||||
Tetra Tech, Inc.* | 14,100 | 370,266 | ||||||
Triumph Group, Inc. | 5,095 | 318,590 | ||||||
Wabtec Corp. | 2,813 | 225,856 | ||||||
Woodward, Inc. | 5,972 | 202,929 | ||||||
4,739,708 | ||||||||
Energy — 7.2% | ||||||||
Dril-Quip, Inc.* | 4,155 | 298,661 | ||||||
Energy XXI Bermuda Ltd. | 11,440 | 399,828 | ||||||
Gulfport Energy Corp.* | 17,465 | 545,956 | ||||||
Lufkin Industries, Inc. | 2,615 | 140,739 | ||||||
Newpark Resources, Inc.* | 18,160 | 134,566 | ||||||
Oasis Petroleum, Inc.* | 13,390 | 394,603 | ||||||
Petroquest Energy, Inc.* | 37,662 | 252,712 | ||||||
2,167,065 | ||||||||
Materials — 5.1% | ||||||||
Flotek Industries, Inc.* | 20,955 | 265,500 | ||||||
Hecla Mining Co.† | 58,475 | 383,011 | ||||||
LSB Industries, Inc.* | 12,696 | 556,974 | ||||||
TPC Group, Inc.* | 8,480 | 346,069 | ||||||
1,551,554 | ||||||||
Financials — 4.9% | ||||||||
Cash America International, Inc. | 6,845 | 264,012 | ||||||
Ezcorp, Inc. - Class A* | 18,645 | 427,530 | ||||||
Financial Engines, Inc.* | 5,785 | 137,857 | ||||||
First Cash Financial Services, Inc.* | 14,210 | 653,802 | ||||||
1,483,201 | ||||||||
Consumer Staples — 2.2% | ||||||||
Boston Beer Co., Inc. (The) - Class A†* | 1,434 | 160,566 | ||||||
Darling International, Inc.* | 9,630 | 176,133 |
4 |
Touchstone Diversified Small Cap Growth Fund – (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.8% (Continued) | ||||||||
�� | ||||||||
Consumer Staples — (Continued) | ||||||||
Lancaster Colony Corp. | 2,247 | $ | 164,593 | |||||
Pricesmart, Inc. | 2,350 | 177,942 | ||||||
679,234 | ||||||||
Total Common Stocks | $ | 29,687,972 | ||||||
Investment Funds — 11.1% | ||||||||
Invesco Government & Agency | ||||||||
Portfolio** | 2,684,106 | 2,684,106 | ||||||
Touchstone Institutional Money Market | ||||||||
Fund^ | 680,850 | 680,850 | ||||||
Total Investment Funds | $ | 3,364,956 | ||||||
Total Investment Securities —108.9% | ||||||||
(Cost $29,236,755) | $ | 33,052,928 | ||||||
Liabilities in Excess of Other Assets — (8.9%) | (2,701,436 | ) | ||||||
Net Assets — 100.0% | $ | 30,351,492 |
† | All or a portion of the security is on loan. The total value of the securities on loan as of September 30, 2012 was $2,615,068. |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
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 | $ | 29,687,972 | $ | — | $ | — | $ | 29,687,972 | ||||||||||
Investment | ||||||||||||||||||
Funds | 3,364,956 | — | — | 3,364,956 | ||||||||||||||
$ | 33,052,928 |
See accompanying Notes to Financial Statements.
5 |
Portfolio of Investments
Touchstone Growth Opportunities Fund – September 30, 2012 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.8% | ||||||||
Information Technology — 32.4% | ||||||||
Alliance Data Systems Corp.* | 30,570 | $ | 4,339,412 | |||||
Apple, Inc. | 20,385 | 13,602,095 | ||||||
Check Point Software Technologies Ltd. | ||||||||
(Israel)* | 54,990 | 2,648,318 | ||||||
Citrix Systems, Inc.* | 41,400 | 3,169,998 | ||||||
Cognizant Technology Solutions Corp. - | ||||||||
Class A* | 43,730 | 3,057,602 | ||||||
EMC Corp.* | 101,270 | 2,761,633 | ||||||
Google, Inc. - Class A* | 8,170 | 6,164,265 | ||||||
Mastercard, Inc. - Class A | 8,700 | 3,927,876 | ||||||
MoneyGram International, Inc.* | 121,199 | 1,810,713 | ||||||
NICE Systems Ltd. ADR (Israel)* | 74,027 | 2,459,178 | ||||||
Nuance Communications, Inc.* | 120,380 | 2,996,258 | ||||||
Oracle Corp. | 110,820 | 3,489,722 | ||||||
Qualcomm, Inc. | 37,649 | 2,352,686 | ||||||
Red Hat, Inc.* | 57,970 | 3,300,812 | ||||||
Salesforce.com, Inc.* | 21,840 | 3,334,750 | ||||||
59,415,318 | ||||||||
Consumer Discretionary — 12.3% | ||||||||
Amazon.com, Inc.* | 10,400 | 2,644,928 | ||||||
Gannett Co., Inc. | 101,270 | 1,797,542 | ||||||
Home Depot, Inc. (The) | 45,000 | 2,716,650 | ||||||
Nordstrom, Inc. | 57,230 | 3,157,951 | ||||||
NVR, Inc.* | 3,413 | 2,882,278 | ||||||
O'Reilly Automotive, Inc.* | 19,760 | 1,652,331 | ||||||
Starbucks Corp. | 38,830 | 1,970,622 | ||||||
Walt Disney Co. (The) | 35,470 | 1,854,372 | ||||||
Williams-Sonoma, Inc. | 85,700 | 3,768,229 | ||||||
22,444,903 | ||||||||
Industrials — 12.0% | ||||||||
BE Aerospace, Inc.* | 45,401 | 1,911,382 | ||||||
Danaher Corp. | 63,480 | 3,500,922 | ||||||
General Electric Co. | 121,260 | 2,753,815 | ||||||
Hexcel Corp.* | 111,853 | 2,686,709 | ||||||
JB Hunt Transport Services, Inc. | 33,970 | 1,767,799 | ||||||
Landstar System, Inc. | 33,440 | 1,581,043 | ||||||
Stanley Black & Decker, Inc. | 57,480 | 4,382,850 | ||||||
WESCO International, Inc.* | 59,860 | 3,423,992 | ||||||
22,008,512 | ||||||||
Health Care — 11.6% | ||||||||
ArthroCare Corp.* | 121,650 | 3,941,460 | ||||||
Celgene Corp.* | 76,860 | 5,872,104 | ||||||
Cooper Cos., Inc. (The) | 31,420 | 2,967,933 | ||||||
Medivation, Inc.* | 28,230 | 1,591,043 | ||||||
Thermo Fisher Scientific, Inc. | 67,940 | 3,996,910 | ||||||
Watson Pharmaceuticals, Inc.* | 33,540 | 2,856,266 | ||||||
21,225,716 | ||||||||
Energy — 9.5% | ||||||||
Halliburton Co. | 56,000 | 1,886,640 | ||||||
National Oilwell Varco, Inc. | 31,420 | 2,517,056 | ||||||
Tesoro Corp. | 142,463 | 5,969,200 | ||||||
Valero Energy Corp. | 126,110 | 3,995,165 |
Weatherford International Ltd. | ||||||||
(Switzerland)* | 232,480 | 2,947,846 | ||||||
17,315,907 | ||||||||
Consumer Staples — 7.8% | ||||||||
Hershey Co. (The) | 50,530 | 3,582,072 | ||||||
Kraft Foods, Inc. - Class A | 142,030 | 5,872,940 | ||||||
Ralcorp Holdings, Inc.* | 66,030 | 4,820,190 | ||||||
14,275,202 | ||||||||
Financials — 6.3% | ||||||||
Ameriprise Financial, Inc. | 43,920 | 2,489,825 | ||||||
CBRE Group, Inc. - Class A* | 159,660 | 2,939,341 | ||||||
Citigroup, Inc. | 74,640 | 2,442,221 | ||||||
JPMorgan Chase & Co. | 90,390 | 3,658,987 | ||||||
11,530,374 | ||||||||
Materials — 4.9% | ||||||||
International Paper Co. | 54,350 | 1,973,992 | ||||||
Monsanto Co. | 20,590 | 1,874,102 | ||||||
PPG Industries, Inc. | 26,750 | 3,071,970 | ||||||
Westlake Chemical Corp.† | 28,771 | 2,102,009 | ||||||
9,022,073 | ||||||||
Total Common Stocks | $ | 177,238,005 | ||||||
Investment Funds — 3.8% | ||||||||
Invesco Government & Agency | ||||||||
Portfolio** | 1,281,105 | 1,281,105 | ||||||
Touchstone Institutional Money Market | ||||||||
Fund^ | 5,716,406 | 5,716,406 | ||||||
Total Investment Funds | $ | 6,997,511 | ||||||
Total Investment Securities —100.6% | ||||||||
(Cost $174,603,437) | $ | 184,235,516 | ||||||
Liabilities in Excess of Other Assets — (0.6%) | (1,151,575 | ) | ||||||
Net Assets — 100.0% | $ | 183,083,941 |
† | All or a portion of the security is on loan. The total value of the securities on loan as of September 30, 2012 was $1,252,979. |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
6 |
Touchstone Growth Opportunities Fund (Continued)
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 | $ | 177,238,005 | $ | — | $ | — | $ | 177,238,005 | ||||||||||
Investment | ||||||||||||||||||
Funds | 6,997,511 | — | — | $ | 6,997,511 | |||||||||||||
$ | 184,235,516 |
See accompanying Notes to Financial Statements.
7 |
Portfolio of Investments
Touchstone Large Cap Growth Fund – September 30, 2012 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.4% | ||||||||
Consumer Discretionary — 28.0% | ||||||||
Comcast Corp. - Class A | 548,810 | $ | 19,630,934 | |||||
Dollar General Corp.* | 404,700 | 20,858,238 | ||||||
Dollar Tree, Inc.* | 424,545 | 20,494,910 | ||||||
Foot Locker, Inc. | 534,275 | 18,966,762 | ||||||
Home Depot, Inc. (The) | 390,965 | 23,602,557 | ||||||
Macy's, Inc. | 612,745 | 23,051,467 | ||||||
Ross Stores, Inc. | 454,025 | 29,330,015 | ||||||
TJX Cos, Inc. | 656,310 | 29,396,125 | ||||||
Toll Brothers, Inc.* | 585,100 | 19,442,873 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. | 263,410 | 25,367,700 | ||||||
Walt Disney Co. (The) | 381,330 | 19,935,932 | ||||||
Wyndham Worldwide Corp. | 432,455 | 22,695,238 | ||||||
272,772,751 | ||||||||
Information Technology — 25.6% | ||||||||
Alliance Data Systems Corp.* | 246,410 | 34,977,900 | ||||||
Apple, Inc. | 56,470 | 37,680,172 | ||||||
ASML Holding NV | 335,915 | 18,031,917 | ||||||
Equinix, Inc.* | 175,027 | 36,064,313 | ||||||
International Business Machines Corp. | 150,435 | 31,207,741 | ||||||
Mastercard, Inc. - Class A | 48,865 | 22,061,570 | ||||||
Seagate Technology PLC | 657,610 | 20,385,910 | ||||||
VeriSign, Inc.* | 414,820 | 20,197,586 | ||||||
Visa, Inc. - Class A | 217,454 | 29,199,723 | ||||||
249,806,832 | ||||||||
Health Care — 14.3% | ||||||||
Alexion Pharmaceuticals, Inc.* | 333,866 | 38,194,270 | ||||||
Biogen Idec, Inc.* | 178,625 | 26,656,209 | ||||||
Bristol-Myers Squibb Co. | 767,880 | 25,915,950 | ||||||
Merck & Co., Inc. | 431,090 | 19,442,159 | ||||||
Perrigo Co. | 255,630 | 29,696,537 | ||||||
139,905,125 | ||||||||
Consumer Staples — 13.5% | ||||||||
Altria Group, Inc. | 607,055 | 20,269,566 | ||||||
Church & Dwight Co., Inc. | 433,558 | 23,407,796 | ||||||
Costco Wholesale Corp. | 205,630 | 20,588,704 | ||||||
Hershey Co. (The) | 251,380 | 17,820,328 | ||||||
Wal-Mart Stores, Inc. | 246,635 | 18,201,663 | ||||||
Whole Foods Market, Inc. | 321,245 | 31,289,263 | ||||||
131,577,320 | ||||||||
Utilities — 5.6% | ||||||||
NiSource, Inc. | 784,225 | 19,982,053 | ||||||
Southern Co. (The) | 399,710 | 18,422,635 | ||||||
Xcel Energy, Inc. | 593,180 | 16,437,018 | ||||||
54,841,706 | ||||||||
Financials — 5.2% | ||||||||
American Tower Corp. REIT | 424,385 | 30,296,845 | ||||||
US Bancorp | 580,800 | 19,921,440 | ||||||
50,218,285 |
Telecommunication Services — 4.1% | ||||||||
BCE, Inc. (Canada) | 461,285 | 20,268,864 | ||||||
Crown Castle International Corp.* | 309,743 | 19,854,526 | ||||||
40,123,390 | ||||||||
Energy — 2.1% | ||||||||
Williams Co, Inc. (The) | 587,200 | 20,534,384 | ||||||
Total Common Stocks | $ | 959,779,793 | ||||||
Investment Fund — 1.8% | ||||||||
Touchstone Institutional Money Market | ||||||||
Fund^ | 17,657,689 | 17,657,689 | ||||||
Total Investment Securities —100.2% | ||||||||
(Cost $813,550,120) | $ | 977,437,482 | ||||||
Liabilities in Excess of Other Assets — (0.2%) | (2,148,642 | ) | ||||||
Net Assets — 100.0% | $ | 975,288,840 |
* | Non-income producing security. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
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 | $ | 959,779,793 | $ | — | $ | — | $ | 959,779,793 | ||||||||||
Investment | ||||||||||||||||||
Fund | 17,657,689 | — | — | 17,657,689 | ||||||||||||||
$ | 977,437,482 |
See accompanying Notes to Financial Statements.
8 |
Portfolio of Investments
Touchstone Mid Cap Growth Fund – September 30, 2012 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.3% | ||||||||
Consumer Discretionary — 21.3% | ||||||||
AMC Networks, Inc.* | 180,830 | $ | 7,869,722 | |||||
Bed Bath & Beyond, Inc.* | 145,590 | 9,172,170 | ||||||
Darden Restaurants, Inc. | 114,940 | 6,407,905 | ||||||
Discovery Communications, Inc.- Class | ||||||||
A* | 199,220 | 11,879,489 | ||||||
Dollar General Corp.* | 236,000 | 12,163,440 | ||||||
Gannett Co., Inc. | 348,010 | 6,177,178 | ||||||
GNC Holdings, Inc. - Class A | 156,310 | 6,091,401 | ||||||
Jarden Corp. | 259,760 | 13,725,718 | ||||||
Mattel, Inc. | 324,120 | 11,499,778 | ||||||
Nordstrom, Inc. | 206,880 | 11,415,638 | ||||||
NVR, Inc.* | 11,858 | 10,014,081 | ||||||
Penn National Gaming, Inc.* | 196,538 | 8,470,788 | ||||||
Starwood Hotels & Resorts Worldwide, | ||||||||
Inc. | 140,220 | 8,127,151 | ||||||
Wynn Resorts Ltd. | 86,590 | 9,995,950 | ||||||
133,010,409 | ||||||||
Information Technology — 20.5% | ||||||||
Alliance Data Systems Corp.* | 136,770 | 19,414,502 | ||||||
Altera Corp. | 167,810 | 5,703,023 | ||||||
Autodesk, Inc.* | 375,460 | 12,529,100 | ||||||
Avago Technologies Ltd. (Singapore) | 127,194 | 4,434,619 | ||||||
Check Point Software Technologies Ltd. | ||||||||
(Israel)* | 242,900 | 11,698,064 | ||||||
F5 Networks, Inc.* | 75,640 | 7,919,507 | ||||||
Gartner, Inc.* | 175,356 | 8,082,158 | ||||||
NetApp, Inc.* | 144,050 | 4,736,363 | ||||||
NICE Systems Ltd. ADR (Israel)* | 363,960 | 12,090,751 | ||||||
Red Hat, Inc.* | 206,880 | 11,779,747 | ||||||
Salesforce.com, Inc.* | 109,575 | 16,731,007 | ||||||
Skyworks Solutions, Inc.* | 130,400 | 3,072,875 | ||||||
Teradata Corp.* | 89,650 | 6,760,506 | ||||||
VeriFone Systems, Inc.* | 111,420 | 3,103,047 | ||||||
128,055,269 | ||||||||
Health Care — 14.5% | ||||||||
Cardinal Health, Inc. | 162,460 | 6,331,066 | ||||||
Cooper Cos., Inc. (The) | 156,309 | 14,764,948 | ||||||
DENTSPLY International, Inc. | 358,600 | 13,677,004 | ||||||
Hologic, Inc.* | 728,690 | 14,748,686 | ||||||
Mettler-Toledo International, Inc.* | 74,709 | 12,755,815 | ||||||
Vertex Pharmaceuticals, Inc.* | 226,040 | 12,646,938 | ||||||
Warner Chilcott PLC - Class A (Ireland)* | 367,800 | 4,965,299 | ||||||
Watson Pharmaceuticals, Inc.* | 123,360 | 10,505,338 | ||||||
90,395,094 | ||||||||
Energy — 12.1% | ||||||||
CONSOL Energy, Inc. | 329,480 | 9,900,874 | ||||||
Denbury Resources, Inc.* | 621,420 | 10,042,147 | ||||||
Ensco PLC - Class A | 186,960 | 10,200,538 | ||||||
Tesoro Corp. | 462,810 | 19,391,739 | ||||||
Valero Energy Corp. | 489,630 | 15,511,478 | ||||||
Weatherford International Ltd. | ||||||||
(Switzerland)* | 855,890 | 10,852,685 | ||||||
75,899,461 |
Industrials — 11.6% | ||||||||
IDEX Corp. | 298,070 | 12,450,384 | ||||||
IHS, Inc. - Class A* | 99,935 | 9,728,672 | ||||||
JB Hunt Transport Services, Inc. | 161,680 | 8,413,827 | ||||||
Precision Castparts Corp. | 78,920 | 12,890,793 | ||||||
Stanley Black & Decker, Inc. | 199,990 | 15,249,238 | ||||||
Triumph Group, Inc. | 127,200 | 7,953,816 | ||||||
United Rentals, Inc.* | 182,370 | 5,965,323 | ||||||
72,652,053 | ||||||||
Financials — 7.2% | ||||||||
Ameriprise Financial, Inc. | 260,520 | 14,768,879 | ||||||
CBRE Group, Inc. - Class A* | 652,833 | 12,018,656 | ||||||
Discover Financial Services | 231,400 | 9,193,522 | ||||||
Willis Group Holdings PLC (United | ||||||||
Kingdom) | 237,530 | 8,769,608 | ||||||
44,750,665 | ||||||||
Materials — 5.9% | ||||||||
Crown Holdings, Inc.* | 334,077 | 12,277,330 | ||||||
Eastman Chemical Co. | 193,635 | 11,039,129 | ||||||
Ecolab, Inc. | 209,950 | 13,606,860 | ||||||
36,923,319 | ||||||||
Consumer Staples — 4.2% | ||||||||
Ralcorp Holdings, Inc.* | 233,700 | 17,060,100 | ||||||
Whole Foods Market, Inc. | 96,548 | 9,403,775 | ||||||
26,463,875 | ||||||||
Total Common Stocks | $ | 608,150,145 | ||||||
Investment Fund — 3.3% | ||||||||
Touchstone Institutional Money Market | ||||||||
Fund^ | 20,519,411 | 20,519,411 | ||||||
Total Investment Securities —100.6% | ||||||||
(Cost $568,183,535) | $ | 628,669,556 | ||||||
Liabilities in Excess of Other Assets — (0.6%) | (3,674,348 | ) | ||||||
Net Assets — 100.0% | $ | 624,995,208 |
* | Non-income producing security. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
Portfolio Abbreviations:
ADR - American Depositary Receipt | |
PLC - Public Limited Company |
9 |
Touchstone Mid Cap Growth Fund (Continued)
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 | $ | 608,150,145 | $ | — | $ | — | $ | 608,150,145 | ||||||||||
Investment | ||||||||||||||||||
Fund | 20,519,411 | — | — | 20,519,411 | ||||||||||||||
$ | 628,669,556 |
See accompanying Notes to Financial Statements.
10 |
Statements of Assets and Liabilities
September 30, 2012 (Unaudited)
Touchstone | ||||||||||||||||
Diversified | Touchstone | Touchstone | Touchstone | |||||||||||||
Small Cap | Growth | Large Cap | Mid Cap | |||||||||||||
Growth | Opportunities | Growth | Growth | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 29,236,755 | $ | 174,603,437 | $ | 813,550,120 | $ | 568,183,535 | ||||||||
Affiliated securities, at market value | $ | 680,850 | $ | 5,716,406 | $ | 17,657,689 | $ | 20,519,411 | ||||||||
Non-affiliated securities, at market value | 32,372,078 | 178,519,110 | 959,779,793 | 608,150,145 | ||||||||||||
Investments, at market value (A) | $ | 33,052,928 | $ | 184,235,516 | $ | 977,437,482 | $ | 628,669,556 | ||||||||
Dividends and interest receivable | 541 | 75,290 | 1,149,237 | 267,835 | ||||||||||||
Receivable for capital shares sold | 2,492 | 151,177 | 1,489,907 | 538,748 | ||||||||||||
Receivable for investments sold | 120,323 | 1,356,716 | — | 3,421,721 | ||||||||||||
Receivable for securities lending income | 2,902 | 69 | 18,690 | — | ||||||||||||
Tax reclaim receivable | — | — | — | 10,463 | ||||||||||||
Other assets | 14,170 | 16,734 | 37,355 | 36,163 | ||||||||||||
Total Assets | 33,193,356 | 185,835,502 | 980,132,671 | 632,944,486 | ||||||||||||
Liabilities | ||||||||||||||||
Bank overdrafts | — | 5,735 | — | — | ||||||||||||
Payable for return of collateral for securities on loan | 2,684,106 | 1,281,105 | — | — | ||||||||||||
Payable for capital shares redeemed | 17,769 | 744,838 | 3,419,906 | 2,132,437 | ||||||||||||
Payable for investments purchased | 73,107 | 464,854 | — | 4,681,520 | ||||||||||||
Payable to Investment Advisor | 18,893 | 134,558 | 575,683 | 378,390 | ||||||||||||
Payable to other affiliates | 3,212 | 30,918 | 302,802 | 273,461 | ||||||||||||
Payable to Trustees | 3,601 | 4,142 | 2,530 | 3,730 | ||||||||||||
Payable for professional services | 13,156 | 12,819 | 3,608 | 12,337 | ||||||||||||
Payable to Transfer Agent | 13,578 | 39,685 | 476,218 | 419,081 | ||||||||||||
Other accrued expenses and liabilities | 14,442 | 32,907 | 63,084 | 48,322 | ||||||||||||
Total Liabilities | 2,841,864 | 2,751,561 | 4,843,831 | 7,949,278 | ||||||||||||
Net Assets | $ | 30,351,492 | $ | 183,083,941 | $ | 975,288,840 | $ | 624,995,208 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 40,234,550 | $ | 184,228,458 | $ | 834,996,036 | $ | 535,893,199 | ||||||||
Accumulated net investment income (loss) | (122,975 | ) | (142,302 | ) | 385,327 | (856,041 | ) | |||||||||
Accumulated net realized gains (losses) on investments | (13,576,256 | ) | (10,634,294 | ) | (23,979,885 | ) | 29,472,029 | |||||||||
Net unrealized appreciation on investments | 3,816,173 | 9,632,079 | 163,887,362 | 60,486,021 | ||||||||||||
Net Assets | $ | 30,351,492 | $ | 183,083,941 | $ | 975,288,840 | $ | 624,995,208 | ||||||||
(A) Includes market value of securities on loan of: | $ | 2,615,068 | $ | 1,252,979 | $ | — | $ | — |
See accompanying Notes to Financial Statements.
11 |
Statements of Assets and Liabilities (Continued)
Touchstone | ||||||||||||||||
Diversified | Touchstone | Touchstone | Touchstone | |||||||||||||
Small Cap | Growth | Large Cap | Mid Cap | |||||||||||||
Growth | Opportunities | Growth | Growth | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 7,033,041 | $ | 71,653,554 | $ | 302,993,456 | $ | 294,435,658 | ||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
(unlimited number of shares authorized, no par value) | 617,166 | 2,761,174 | 11,003,333 | 13,172,173 | ||||||||||||
Net asset value and redemption price per share | $ | 11.40 | $ | 25.95 | $ | 27.54 | $ | 22.35 | ||||||||
Maximum offering price per share * | $ | 12.10 | $ | 27.53 | $ | 29.22 | $ | 23.71 | ||||||||
Pricing of Class B Shares | ||||||||||||||||
Net assets applicable to Class B shares | $ | — | $ | — | $ | 8,687,743 | $ | 6,949,437 | ||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
(unlimited number of shares authorized, no par value) | — | — | 331,403 | 377,866 | ||||||||||||
Net asset value and offering price per share** | $ | — | $ | — | $ | 26.22 | $ | 18.39 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 1,658,513 | $ | 9,205,943 | $ | 115,741,197 | $ | 143,775,161 | ||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
(unlimited number of shares authorized, no par value) | 151,184 | 385,540 | 4,448,639 | 7,900,423 | ||||||||||||
Net asset value and offering price per share** | $ | 10.97 | $ | 23.88 | $ | 26.02 | $ | 18.20 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 21,659,938 | $ | 31,312,335 | $ | 547,866,444 | $ | 141,837,232 | ||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
(unlimited number of shares authorized, no par value) | 1,873,107 | 1,197,565 | 19,658,316 | 6,272,024 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 11.56 | $ | 26.15 | $ | 27.87 | $ | 22.61 | ||||||||
Pricing of Institutional Class shares | ||||||||||||||||
Net assets applicable to Institutional Class shares | $ | — | $ | 70,912,109 | $ | — | $ | 37,997,720 | ||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
(unlimited number of shares authorized, no par value) | — | 2,697,478 | — | 1,678,139 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | 26.29 | $ | — | $ | 22.64 |
* There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a $1 million or more subscription may be subject to a contingent deferred sales load.
** Redemption price per share varies by length of time shares are held.
See accompanying Notes to Financial Statements.
12 |
Statements of Operations
For the Six Months Ended September 30, 2012 (Unaudited)
Touchstone | Touchstone | |||||||||||||||
Diversified | Growth | Touchstone | Touchstone | |||||||||||||
Small Cap | Opportunities | Large Cap | Mid Cap | |||||||||||||
Growth Fund | Fund | Growth Fund | Growth Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends from affiliated securities | $ | 999 | $ | 2,105 | $ | 14,216 | $ | 13,520 | ||||||||
Dividends from non-affiliated securities(A) | 62,842 | 666,344 | 5,140,929 | 3,780,790 | ||||||||||||
Income from securities loaned | 14,121 | 482 | 39,244 | 1,316 | ||||||||||||
Total Investment Income | 77,962 | 668,931 | 5,194,389 | 3,795,626 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 167,446 | 566,611 | 2,806,845 | 2,265,740 | ||||||||||||
Administration fees | 29,714 | 140,506 | 732,462 | 569,388 | ||||||||||||
Compliance fees and expenses | 716 | 716 | 716 | 716 | ||||||||||||
Custody fees | 218 | 961 | 4,540 | 4,699 | ||||||||||||
Professional fees | 9,615 | 12,344 | 28,739 | 24,344 | ||||||||||||
Transfer Agent fees, Class A | 8,672 | 27,897 | 130,629 | 260,175 | ||||||||||||
Transfer Agent fees, Class B | — | — | 10,682 | 16,849 | ||||||||||||
Transfer Agent fees, Class C | 3,046 | 7,774 | 66,738 | 139,737 | ||||||||||||
Transfer Agent fees, Class Y | 9,256 | 3,947 | 315,103 | 57,999 | ||||||||||||
Transfer Agent fees, Institutional Class | — | 595 | — | 1,145 | ||||||||||||
Registration fees, Class A | 4,883 | 12,793 | 9,701 | 7,299 | ||||||||||||
Registration fees, Class B | — | — | 5,550 | 2,899 | ||||||||||||
Registration fees, Class C | 4,382 | 4,746 | 7,918 | 4,704 | ||||||||||||
Registration fees, Class Y | 5,928 | 10,375 | 13,093 | 9,127 | ||||||||||||
Registration fees, Institutional Class | — | 5,763 | — | 2,283 | ||||||||||||
Reports to Shareholders, Class A | 4,260 | 6,755 | 18,556 | 27,527 | ||||||||||||
Reports to Shareholders, Class B | — | — | 4,292 | 4,667 | ||||||||||||
Reports to Shareholders, Class C | 3,484 | 3,695 | 10,647 | 18,184 | ||||||||||||
Reports to Shareholders, Class Y | 3,779 | 3,995 | 35,714 | 7,822 | ||||||||||||
Reports to Shareholders, Institutional Class | — | 3,376 | — | 3,671 | ||||||||||||
Distribution expenses, Class A | 8,816 | 73,629 | 307,034 | 373,806 | ||||||||||||
Distribution expenses, Class B | — | — | 16,359 | 12,840 | ||||||||||||
Distribution expenses, Class C | 8,691 | 42,884 | 575,048 | 735,484 | ||||||||||||
Trustee fees | 3,602 | 3,632 | 3,794 | 3,774 | ||||||||||||
Other expenses | 4,430 | 12,727 | 55,736 | 106,849 | ||||||||||||
Total Expenses | 280,938 | 945,721 | 5,159,896 | 4,661,728 | ||||||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (80,001 | ) | (134,488 | ) | (351,588 | ) | (10,061 | ) | ||||||||
Net Expenses | 200,937 | 811,233 | 4,808,308 | 4,651,667 | ||||||||||||
Net Investment Income (Loss) | (122,975 | ) | (142,302 | ) | 386,081 | (856,041 | ) | |||||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net realized gain on investments | 1,166,475 | 6,923,455 | 96,146,926 | 20,542,007 | ||||||||||||
Net change in unrealized depreciation on investments(C) | (1,414,538 | ) | (4,500,179 | ) | (102,416,118 | ) | (24,222,566 | ) | ||||||||
Net Realized and Unrealized Gain (Loss) on Investments | (248,063 | ) | 2,423,276 | (6,269,192 | ) | (3,680,559 | ) | |||||||||
Change in Net Assets Resulting from Operations | $ | (371,038 | ) | $ | 2,280,974 | $ | (5,883,111 | ) | $ | (4,536,600 | ) | |||||
(A) Net of foreign tax withholding of: | $ | — | $ | — | $ | 74,448 | $ | 9,565 |
(B) See Note 4 in Notes to Financial Statements.
(C) Change in unrealized depreciation does not include unrealized appreciation of $10,318,849 for the Growth Opportunities Fund and $83,525,044 for the Large Cap Growth Fund, in connection with the Fund merger that occurred on September 10, 2012. See Note 7 in Notes to Financial Statements.
See accompanying Notes to Financial Statements.
13 |
Statements of Changes in Net Assets
Touchstone Diversified Small Cap Growth Fund | Touchstone Growth Opportunities Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
September | For the Year | September | For the Year | |||||||||||||
30,2012 | Ended | 30,2012 | Ended | |||||||||||||
(Unaudited) | March 31,2012 | (Unaudited) | March 31,2012 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | (122,975 | ) | $ | (282,000 | ) | $ | (142,302 | ) | $ | (610,314 | ) | ||||
Net realized gain on investments | 1,166,475 | 4,197,671 | 6,923,455 | 9,529,797 | ||||||||||||
Net change in unrealized depreciation on investments | (1,414,538 | ) | (4,682,853 | ) | (4,500,179 | ) | (11,239,370 | ) | ||||||||
Change in Net Assets from Operations | (371,038 | ) | (767,182 | ) | 2,280,974 | (2,319,887 | ) | |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class Y | — | — | — | — | ||||||||||||
Net realized gains, Class A | — | — | — | — | ||||||||||||
Net realized gains, Class B | — | — | — | — | ||||||||||||
Net realized gains, Class C | — | — | — | — | ||||||||||||
Net realized gains, Class Y | — | — | — | — | ||||||||||||
Net realized gains, Institutional Class | — | — | — | — | ||||||||||||
Total Distributions | — | — | — | — | ||||||||||||
Net Increase (Decrease) from Share Transactions(A) | (4,681,133 | ) | (1,301,686 | ) | 26,500,875 | (10,229,168 | ) | |||||||||
Total Increase (Decrease) in Net Assets | (5,052,171 | ) | (2,068,868 | ) | 28,781,849 | (12,549,055 | ) | |||||||||
Net Assets | ||||||||||||||||
Beginning of period | 35,403,663 | 37,472,531 | 154,302,092 | 166,851,147 | ||||||||||||
End of period | $ | 30,351,492 | $ | 35,403,663 | $ | 183,083,941 | $ | 154,302,092 | ||||||||
Accumulated Net Investment Income (Loss) | $ | (122,975 | ) | $ | — | $ | (142,302 | ) | $ | — |
(A) For details on share transactions, by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 18-21.
See accompanying Notes to Financial Statements.
14 |
Statements of Changes in Net Assets (Continued)
Touchstone Large Cap Growth Fund | Touchstone Mid Cap Growth Fund | ||||||||||||||
For the | For the | ||||||||||||||
Six Months | Six Months | ||||||||||||||
Ended | Ended | ||||||||||||||
September | For the Year | September | For the Year | ||||||||||||
30,2012 | Ended | 30,2012 | Ended | ||||||||||||
(Unaudited) | March 31,2012 | (Unaudited) | March 31,2012 | ||||||||||||
$ | 386,081 | $ | 639,110 | $ | (856,041 | ) | $ | (6,679,455 | ) | ||||||
96,146,926 | 103,254,141 | 20,542,007 | 29,614,594 | ||||||||||||
(102,416,118 | ) | (27,105,080 | ) | (24,222,566 | ) | (63,726,763 | ) | ||||||||
(5,883,111 | ) | 76,788,171 | (4,536,600 | ) | (40,791,624 | ) | |||||||||
(639,864 | ) | — | — | — | |||||||||||
— | — | — | (21,193,881 | ) | |||||||||||
— | — | — | (951,498 | ) | |||||||||||
— | — | — | (11,853,901 | ) | |||||||||||
— | — | — | (6,874,624 | ) | |||||||||||
— | — | — | (1,141,754 | ) | |||||||||||
(639,864 | ) | — | — | (42,015,658 | ) | ||||||||||
230,614,117 | (89,789,576 | ) | (23,793,623 | ) | (142,178,322 | ) | |||||||||
224,091,142 | (13,001,405 | ) | (28,330,223 | ) | (224,985,604 | ) | |||||||||
751,197,698 | 764,199,103 | 653,325,431 | 878,311,035 | ||||||||||||
$ | 975,288,840 | $ | 751,197,698 | $ | 624,995,208 | $ | 653,325,431 | ||||||||
$ | 385,327 | $ | 639,110 | $ | (856,041 | ) | $ | — |
15 |
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone Diversified Small Cap Growth Fund | ||||||||||||||||
For the Six Months Ended September 30, 2012 (Unaudited) | For the Year Ended March 31, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | 23,578 | $ | 254,174 | 77,886 | $ | 844,906 | ||||||||||
Proceeds from shares issued in connection with merger(A) | — | — | — | — | ||||||||||||
Cost of shares redeemed | (81,417 | ) | (886,850 | ) | (749,232 | ) | (8,654,791 | ) | ||||||||
Change in Class A Share Transactions | (57,839 | ) | (632,676 | ) | (671,346 | ) | (7,809,885 | ) | ||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | 506 | 5,376 | 2,670 | 28,834 | ||||||||||||
Proceeds from shares issued in connection with merger(A) | — | — | — | — | ||||||||||||
Cost of shares redeemed | (31,909 | ) | (336,398 | ) | (36,230 | ) | (386,880 | ) | ||||||||
Change in Class C Share Transactions | (31,403 | ) | (331,022 | ) | (33,560 | ) | (358,046 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from shares issued | 188,554 | 2,072,542 | 1,185,403 | 13,511,349 | ||||||||||||
Proceeds from shares issued in connection with merger(A) | — | — | — | — | ||||||||||||
Cost of shares redeemed | (533,583 | ) | (5,789,977 | ) | (609,016 | ) | (6,645,104 | ) | ||||||||
Change in Class Y Share Transactions | (345,029 | ) | (3,717,435 | ) | 576,387 | 6,866,245 | ||||||||||
Institutional Class | ||||||||||||||||
Proceeds from shares issued | — | — | — | — | ||||||||||||
Cost of shares redeemed | — | — | — | — | ||||||||||||
Change in Institutional Class Share Transactions | — | — | — | — | ||||||||||||
Change from Share Transactions | (434,271 | ) | $ | (4,681,133 | ) | (128,519 | ) | $ | (1,301,686 | ) |
(A) See Note 7 in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
16 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Growth Opportunities Fund | |||||||||||||||
For the Six Months Ended September 30, 2012 (Unaudited) | For the Year Ended March 31, 2012 | ||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||
50,784 | $ | 1,253,237 | 638,852 | $ | 14,956,666 | ||||||||||
572,780 | 14,817,828 | — | — | ||||||||||||
(291,017 | ) | (7,121,082 | ) | (2,045,498 | ) | (44,968,032 | ) | ||||||||
332,547 | 8,949,983 | (1,406,646 | ) | (30,011,366 | ) | ||||||||||
17,479 | 389,383 | 38,297 | 841,612 | ||||||||||||
20,324 | 483,997 | — | — | ||||||||||||
(37,835 | ) | (838,007 | ) | (103,410 | ) | (2,237,050 | ) | ||||||||
(32 | ) | 35,373 | (65,113 | ) | (1,395,438 | ) | |||||||||
96,194 | 2,313,489 | 994,535 | 22,419,776 | ||||||||||||
1,938,310 | 50,516,751 | — | — | ||||||||||||
(1,311,829 | ) | (34,069,751 | ) | (635,775 | ) | (14,363,604 | ) | ||||||||
722,675 | 18,760,489 | 358,760 | 8,056,172 | ||||||||||||
1,532,907 | 39,591,279 | 1,026,245 | 25,061,590 | ||||||||||||
(1,560,722 | ) | (40,836,249 | ) | (515,131 | ) | (11,940,126 | ) | ||||||||
(27,815 | ) | (1,244,970 | ) | 511,114 | 13,121,464 | ||||||||||
1,027,375 | $ | 26,500,875 | (601,885 | ) | $ | (10,229,168 | ) |
17 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Large Cap Growth Fund | ||||||||||||||||
For the Six Months Ended September 30, 2012 (Unaudited) | For the Year Ended March 31, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from shares issued | 1,458,918 | $ | 39,780,806 | 2,082,450 | $ | 59,405,827 | ||||||||||
Proceeds from shares issued in connection with merger(A) | 2,188,990 | 60,528,345 | 955,798 | 23,922,198 | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of shares redeemed | (1,241,040 | ) | (33,846,978 | ) | (6,139,459 | ) | (156,470,510 | ) | ||||||||
Change in Class A Share Transactions | 2,406,868 | 66,462,173 | (3,101,211 | ) | (73,142,485 | ) | ||||||||||
Class B | ||||||||||||||||
Proceeds from Shares issued | 156 | 4,132 | 1,323 | 32,460 | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | (82,381 | ) | (2,143,213 | ) | (152,370 | ) | (3,787,039 | ) | ||||||||
Change in Class B Share Transactions | (82,225 | ) | (2,139,081 | ) | (151,047 | ) | (3,754,579 | ) | ||||||||
Class C | ||||||||||||||||
Proceeds from shares issued | 411,483 | 10,618,934 | 365,654 | 8,640,062 | ||||||||||||
Proceeds from shares issued in connection with merger(A) | 39,069 | 1,021,152 | 72,432 | 1,730,818 | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of shares redeemed | (424,194 | ) | (10,957,158 | ) | (1,350,857 | ) | (33,431,998 | ) | ||||||||
Change in Class C Share Transactions | 26,358 | 682,928 | (912,771 | ) | (23,061,118 | ) | ||||||||||
Class Y | ||||||||||||||||
Proceeds from shares issued | 2,825,163 | 78,174,098 | 6,346,782 | 161,647,798 | ||||||||||||
Proceeds from shares issued in connection with merger(A) | 6,984,781 | 195,449,178 | — | — | ||||||||||||
Reinvestment of distributions | 21,557 | 593,239 | — | — | ||||||||||||
Cost of shares redeemed | (3,896,167 | ) | (108,608,418 | ) | (5,793,403 | ) | (151,479,192 | ) | ||||||||
Change in Class Y Share Transactions | 5,935,334 | 165,608,097 | 553,379 | 10,168,606 | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of shares redeemed | — | — | — | — | ||||||||||||
Change in Institutional Class Share Transactions | — | — | — | — | ||||||||||||
Change from Share Transactions | 8,286,335 | $ | 230,614,117 | (3,611,650 | ) | $ | (89,789,576 | ) |
(A) See Note 7 in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
18 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Mid Cap Growth Fund | |||||||||||||||
For the Six Months Ended September 30, 2012 (Unaudited) | For the Year Ended March 31, 2012 | ||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||
1,046,544 | $ | 22,704,312 | 3,738,408 | $ | 84,121,277 | ||||||||||
— | — | — | — | ||||||||||||
— | — | 1,081,869 | 19,830,612 | ||||||||||||
(2,636,990 | ) | (56,685,157 | ) | (13,508,107 | ) | (309,991,242 | ) | ||||||||
(1,590,446 | ) | (33,980,845 | ) | (8,687,830 | ) | (206,039,353 | ) | ||||||||
— | — | 15,934 | 263,887 | ||||||||||||
— | — | 46,289 | 701,743 | ||||||||||||
(200,108 | ) | (3,540,933 | ) | (603,136 | ) | (11,038,406 | ) | ||||||||
(200,108 | ) | (3,540,933 | ) | (540,913 | ) | (10,072,776 | ) | ||||||||
99,214 | 1,736,523 | 573,022 | 9,987,636 | ||||||||||||
— | — | — | — | ||||||||||||
— | — | 526,882 | 7,913,771 | ||||||||||||
(1,082,437 | ) | (18,995,606 | ) | (2,948,567 | ) | (53,094,928 | ) | ||||||||
(983,223 | ) | (17,259,083 | ) | (1,848,663 | ) | (35,193,521 | ) | ||||||||
1,651,909 | 36,867,439 | 5,086,300 | 119,526,286 | ||||||||||||
— | — | — | — | ||||||||||||
— | — | 317,134 | 5,866,970 | ||||||||||||
(840,832 | ) | (18,237,137 | ) | (1,836,070 | ) | (39,821,226 | ) | ||||||||
811,077 | 18,630,302 | 3,567,364 | 85,572,030 | ||||||||||||
701,926 | 15,639,162 | 1,132,638 | 23,806,747 | ||||||||||||
— | — | 61,683 | 1,141,754 | ||||||||||||
(151,632 | ) | (3,282,226 | ) | (66,476 | ) | (1,393,203 | ) | ||||||||
550,294 | 12,356,936 | 1,127,845 | 23,555,298 | ||||||||||||
(1,412,406 | ) | $ | (23,793,623 | ) | (6,382,197 | ) | $ | (142,178,322 | ) |
19 |
Financial Highlights
Touchstone Diversified Small Cap Growth Fund — Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.42 | $ | 11.65 | $ | 9.09 | $ | 6.27 | $ | 9.80 | $ | 11.64 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | (0.11 | ) | (0.09 | ) | (0.08 | ) | (0.02 | ) | 0.50 | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.03 | (0.12 | ) | 2.65 | 2.90 | (3.51 | ) | (1.15 | ) | |||||||||||||||
Total from investment operations | (0.02 | ) | (0.23 | ) | 2.56 | 2.82 | (3.53 | ) | (0.65 | ) | ||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | — | — | — | — | (1.19 | ) | |||||||||||||||||
Net asset value at end of period | $ | 11.40 | $ | 11.42 | $ | 11.65 | $ | 9.09 | $ | 6.27 | $ | 9.80 | ||||||||||||
Total return(A) | (0.18 | %)(B) | (1.97 | %) | 28.16 | % | 44.98 | % | (36.02 | %) | (7.28 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 7,033 | $ | 7,711 | $ | 15,686 | $ | 12,708 | $ | 9,054 | $ | 22,955 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.40 | %(C) | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | ||||||||||||
Gross expenses | 2.11 | %(C) | 2.19 | % | 2.06 | % | 2.24 | % | 2.25 | % | 2.03 | % | ||||||||||||
Net investment income (loss) | (0.91 | %)(C) | (0.97 | %) | (0.99 | %) | (0.99 | %) | (0.22 | %) | 0.33 | % | ||||||||||||
Portfolio turnover rate | 34 | %(B) | 65 | % | 63 | % | 76 | % | 113 | % | 99 | % |
Touchstone Diversified Small Cap Growth Fund — Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | Period Ended March 31, | ||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008(D) | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.04 | $ | 11.35 | $ | 8.91 | $ | 6.20 | $ | 9.75 | $ | 12.44 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.10 | ) | (0.20 | ) | (0.19 | ) | (0.15 | ) | (0.08 | ) | (0.22 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.03 | (0.11 | ) | 2.63 | 2.86 | (3.47 | ) | (1.28 | ) | |||||||||||||||
Total from investment operations | (0.07 | ) | (0.31 | ) | 2.44 | 2.71 | (3.55 | ) | (1.50 | ) | ||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | — | — | — | — | (1.19 | ) | |||||||||||||||||
Net asset value at end of period | $ | 10.97 | $ | 11.04 | $ | 11.35 | $ | 8.91 | $ | 6.20 | $ | 9.75 | ||||||||||||
Total return(A) | (0.63 | %)(B) | (2.73 | %) | 27.38 | % | 43.71 | % | (36.41 | %) | (13.66 | %)(B) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,659 | $ | 2,015 | $ | 2,452 | $ | 2,576 | $ | 2,267 | $ | 4,228 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.15 | %(C) | 2.15 | % | 2.15 | % | 2.15 | % | 2.15 | % | 0.84 | %(C) | ||||||||||||
Gross expenses | 3.61 | %(C) | 3.63 | % | 3.58 | % | 3.32 | % | 3.54 | % | 1.35 | %(C) | ||||||||||||
Net investment loss | (1.66 | %)(C) | (1.72 | %) | (1.74 | %) | (1.74 | %) | (0.98 | %) | (17.70 | %)(C) | ||||||||||||
Portfolio turnover rate | 34 | %(B) | 65 | % | 63 | % | 76 | % | 113 | % | 99 | %(B) |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Represents the period from commencement of operations (August 1, 2007) through March 31, 2008. |
See accompanying Notes to Financial Statements.
20 |
Financial Highlights (Continued)
Touchstone Diversified Small Cap Growth Fund — Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.58 | $ | 11.78 | $ | 9.16 | $ | 6.30 | $ | 9.84 | $ | 11.66 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.08 | ) | (0.08 | ) | (0.05 | ) | — | (A) | 0.04 | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.02 | (0.12 | ) | 2.70 | 2.91 | (3.54 | ) | (0.67 | ) | |||||||||||||||
Total from investment operations | (0.02 | ) | (0.20 | ) | 2.62 | 2.86 | (3.54 | ) | (0.63 | ) | ||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | — | — | — | — | (1.19 | ) | |||||||||||||||||
Net asset value at end of period | $ | 11.56 | $ | 11.58 | $ | 11.78 | $ | 9.16 | $ | 6.30 | $ | 9.84 | ||||||||||||
Total return | (0.17 | %)(B) | (1.70 | %) | 28.60 | % | 45.40 | % | (35.98 | %) | (7.09 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 21,660 | $ | 25,677 | $ | 19,334 | $ | 20,856 | $ | 8,808 | $ | 14,509 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.15 | %(C) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | ||||||||||||
Gross expenses | 1.52 | %(C) | 1.59 | % | 1.58 | % | 1.66 | % | 1.67 | % | 1.81 | % | ||||||||||||
Net investment income (loss) | (0.66 | %)(C) | (0.72 | %) | (0.73 | %) | (0.74 | %) | 0.02 | % | (0.52 | %) | ||||||||||||
Portfolio turnover rate | 34 | %(B) | 65 | % | 63 | % | 76 | % | 113 | % | 99 | % |
(A) | Amount rounds to less than $0.005 per share. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
21 |
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund — Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 25.64 | $ | 25.27 | $ | 20.88 | $ | 14.41 | $ | 21.68 | $ | 20.75 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.16 | ) | 0.07 | (0.03 | ) | (0.15 | ) | (0.24 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.35 | 0.53 | 4.44 | 6.50 | (7.12 | ) | 1.17 | |||||||||||||||||
Total from investment operations | 0.31 | 0.37 | 4.51 | 6.47 | (7.27 | ) | 0.93 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.12 | ) | — | — | — | |||||||||||||||||
Net asset value at end of period | $ | 25.95 | $ | 25.64 | $ | 25.27 | $ | 20.88 | $ | 14.41 | $ | 21.68 | ||||||||||||
Total return(A) | 1.21 | %(B) | 1.47 | % | 21.71 | % | 44.90 | % | (33.53 | %) | 4.48 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 71,654 | $ | 62,274 | $ | 96,930 | $ | 32,182 | $ | 17,973 | $ | 26,349 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(C) | 1.21 | % | 1.16 | % | 1.24 | % | 1.51 | % | 1.55 | % | ||||||||||||
Gross expenses | 1.39 | %(C) | 1.43 | % | 1.50 | % | 1.85 | % | 2.04 | % | 1.91 | % | ||||||||||||
Net investment income (loss) | (0.35 | %)(C) | (0.52 | %) | 0.10 | % | (0.22 | %) | (0.70 | %) | (0.89 | %) | ||||||||||||
Portfolio turnover rate | 52 | %(B)(D) | 204 | % | 130 | % | 100 | % | 60 | % | 82 | % |
Touchstone Growth Opportunities Fund — Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 23.68 | $ | 23.50 | $ | 19.49 | $ | 13.55 | $ | 20.42 | $ | 19.63 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.12 | ) | (0.29 | ) | (0.07 | ) | (0.17 | ) | (0.29 | ) | (0.35 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.32 | 0.47 | 4.12 | 6.11 | (6.58 | ) | 1.14 | |||||||||||||||||
Total from investment operations | 0.20 | 0.18 | 4.05 | 5.94 | (6.87 | ) | 0.79 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.04 | ) | — | — | — | |||||||||||||||||
Net asset value at end of period | $ | 23.88 | $ | 23.68 | $ | 23.50 | $ | 19.49 | $ | 13.55 | $ | 20.42 | ||||||||||||
Total return(A) | 0.85 | %(B) | 0.77 | % | 20.82 | % | 43.84 | % | (33.64 | %) | 4.02 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 9,206 | $ | 9,132 | $ | 10,592 | $ | 8,085 | $ | 6,262 | $ | 11,115 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(C) | 1.96 | % | 1.93 | % | 1.99 | % | 2.27 | % | 2.30 | % | ||||||||||||
Gross expenses | 2.35 | %(C) | 2.45 | % | 2.58 | % | 2.63 | % | 2.82 | % | 2.71 | % | ||||||||||||
Net investment loss | (1.10 | %)(C) | (1.27 | %) | (0.43 | %) | (0.96 | %) | (1.46 | %) | (1.60 | %) | ||||||||||||
Portfolio turnover rate | 52 | %(B)(D) | 204 | % | 130 | % | 100 | % | 60 | % | 82 | % |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
22 |
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund — Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | Period Ended March 31, | ||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 25.80 | $ | 25.38 | $ | 20.94 | $ | 14.41 | $ | 14.37 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.05 | ) | 0.14 | — | (B) | — | (B) | |||||||||||
Net realized and unrealized gains on investments | 0.36 | 0.47 | 4.45 | 6.53 | 0.04 | |||||||||||||||
Total from investment operations | 0.35 | 0.42 | 4.59 | 6.53 | 0.04 | |||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.15 | ) | — | — | ||||||||||||||
Net asset value at end of period | $ | 26.15 | $ | 25.80 | $ | 25.38 | $ | 20.94 | $ | 14.41 | ||||||||||
Total return | 1.36 | %(C) | 1.66 | % | 22.06 | % | 45.32 | % | 0.28 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 31,312 | $ | 12,254 | $ | 2,947 | $ | 2,223 | $ | 3 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.99 | %(D) | 0.96 | % | 0.93 | % | 0.98 | % | 0.97 | %(D) | ||||||||||
Gross expenses | 1.22 | %(D) | 1.42 | % | 1.73 | % | 3.73 | % | 1.82 | %(D) | ||||||||||
Net investment income (loss) | (0.10 | %)(D) | (0.27 | %) | 0.63 | % | (0.04 | %) | (0.21 | %)(D) | ||||||||||
Portfolio turnover rate | 52 | %(C)(E) | 204 | % | 130 | % | 100 | % | 60 | %(C) |
Touchstone Growth Opportunities Fund — Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | Period Ended March 31, | ||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 25.92 | $ | 25.46 | $ | 20.98 | $ | 14.42 | $ | 14.37 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net Investment income (loss) | 0.01 | (0.03 | ) | 0.16 | 0.01 | — | (B) | |||||||||||||
Net realized and unrealized gains on investments | 0.36 | 0.49 | 4.48 | 6.55 | 0.05 | |||||||||||||||
Total from investment operations | 0.37 | 0.46 | 4.64 | 6.56 | 0.05 | |||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.16 | ) | — | — | ||||||||||||||
Net asset value at end of period | $ | 26.29 | $ | 25.92 | $ | 25.46 | $ | 20.98 | $ | 14.42 | ||||||||||
Total return | 1.43 | %(C) | 1.81 | % | 22.25 | % | 45.49 | % | 0.35 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 70,912 | $ | 70,643 | $ | 56,381 | $ | 21,807 | $ | 3 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.84 | %(D) | 0.81 | % | 0.75 | % | 0.84 | % | 0.82 | %(D) | ||||||||||
Gross expenses | 1.01 | %(D) | 1.06 | % | 1.15 | % | 1.49 | % | 1.82 | %(D) | ||||||||||
Net investment income (loss) | 0.05 | %(D) | (0.12 | %) | 0.78 | % | 0.15 | % | 0.36 | %(D) | ||||||||||
Portfolio turnover rate | 52 | %(C)(E) | 204 | % | 130 | % | 100 | % | 60 | %(C) |
(A) | Represents the period from commencement of operations (February 2, 2009) through March 31, 2009. |
(B) | Amount rounds to less than $0.005. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
23 |
Financial Highlights (Continued)
Touchstone Large Cap Growth Fund — Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 27.74 | $ | 24.95 | $ | 20.74 | $ | 14.73 | $ | 24.45 | $ | 22.06 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | — | (A) | 0.02 | (B) | (0.09 | ) | (0.02 | ) | 0.09 | 0.02 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.20 | ) | 2.77 | 4.30 | 6.08 | (9.80 | ) | 2.37 | ||||||||||||||||
Total from investment operations | (0.20 | ) | 2.79 | 4.21 | 6.06 | (9.71 | ) | 2.39 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | (0.04 | ) | (0.01 | ) | — | ||||||||||||||||
Realized capital gains | — | — | — | (0.01 | ) | — | — | |||||||||||||||||
Total distributions | — | — | — | (0.05 | ) | (0.01 | ) | — | ||||||||||||||||
Net asset value at end of period | $ | 27.54 | $ | 27.74 | $ | 24.95 | $ | 20.74 | $ | 14.73 | $ | 24.45 | ||||||||||||
Total return(C) | (0.72 | %)(D) | 11.18 | % | 20.30 | % | 41.15 | % | (39.71 | %) | 10.83 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 302,993 | $ | 238,488 | $ | 291,827 | $ | 334,465 | $ | 418,808 | $ | 719,488 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(E) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||
Gross expenses | 1.30 | %(E) | 1.35 | % | 1.36 | % | 1.37 | % | 1.33 | % | 1.33 | % | ||||||||||||
Net investment income (loss) | 0.08 | %(E) | 0.08 | % | (0.36 | %) | (0.29 | %) | 0.41 | % | 0.06 | % | ||||||||||||
Portfolio turnover rate | 69 | %(D)(F) | 91 | % | 76 | % | 83 | % | 126 | % | 72 | % |
Touchstone Large Cap Growth Fund — Class B
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.47 | $ | 23.85 | $ | 19.93 | $ | 14.22 | $ | 23.68 | $ | 21.46 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.03 | )(B) | (0.20 | ) | (0.44 | ) | (0.08 | ) | (0.15 | ) | ||||||||||||
Net realized gains (losses) on investments | (0.20 | ) | 2.65 | 4.12 | 6.15 | (9.38 | ) | 2.37 | ||||||||||||||||
Total from investment operations | (0.25 | ) | 2.62 | 3.92 | 5.71 | (9.46 | ) | 2.22 | ||||||||||||||||
Net asset value at end of period | $ | 26.22 | $ | 26.47 | $ | 23.85 | $ | 19.93 | $ | 14.22 | $ | 23.68 | ||||||||||||
Total return(C) | (0.94 | %)(D) | 10.99 | % | 19.67 | % | 40.15 | % | (39.95 | %) | 10.34 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 8,688 | $ | 10,949 | $ | 13,467 | $ | 14,897 | $ | 14,186 | $ | 29,829 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.69 | %(E) | 1.45 | % | 1.74 | % | 2.00 | % | 2.00 | % | 2.00 | % | ||||||||||||
Gross expenses | 1.69 | %(E) | 1.45 | % | 1.83 | % | 2.29 | % | 2.20 | % | 2.18 | % | ||||||||||||
Net investment loss | (0.37 | %)(E) | (0.12 | %) | (0.85 | %) | (1.05 | %) | (0.35 | %) | (0.65 | %) | ||||||||||||
Portfolio turnover rate | 69 | %(D)(F) | 91 | % | 76 | % | 83 | % | 126 | % | 72 | % |
(A) | Amount rounds to less than $0.005. |
(B) | The net investment income per share is based on average shares outstanding for the period or year. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
24 |
Financial Highlights (Continued)
Touchstone Large Cap Growth Fund — Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.31 | $ | 23.84 | $ | 19.97 | $ | 14.25 | $ | 23.74 | $ | 21.52 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.09 | ) | (0.16 | )(A) | (0.27 | ) | (0.22 | ) | (0.07 | ) | (0.14 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.20 | ) | 2.63 | 4.14 | 5.94 | (9.42 | ) | 2.36 | ||||||||||||||||
Total from investment operations | (0.29 | ) | 2.47 | 3.87 | 5.72 | (9.49 | ) | 2.22 | ||||||||||||||||
Net asset value at end of period | $ | 26.02 | $ | 26.31 | $ | 23.84 | $ | 19.97 | $ | 14.25 | $ | 23.74 | ||||||||||||
Total return(B) | (1.10 | %)(C) | 10.36 | % | 19.38 | % | 40.14 | % | (39.97 | %) | 10.32 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 115,741 | $ | 116,350 | $ | 127,172 | $ | 142,179 | $ | 137,641 | $ | 236,582 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(D) | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | ||||||||||||
Gross expenses | 2.07 | %(D) | 2.09 | % | 2.13 | % | 2.16 | % | 2.11 | % | 2.09 | % | ||||||||||||
Net investment loss | (0.67 | %)(D) | (0.67 | %) | (1.11 | %) | (1.05 | %) | (0.33 | %) | (0.66 | %) | ||||||||||||
Portfolio turnover rate | 69 | %(C)(E) | 91 | % | 76 | % | 83 | % | 126 | % | 72 | % |
Touchstone Large Cap Growth Fund — Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 28.09 | $ | 25.19 | $ | 20.89 | $ | 14.84 | $ | 24.64 | $ | 22.19 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.09 | (A) | (0.02 | ) | (0.01 | ) | 0.10 | 0.05 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.22 | ) | 2.81 | 4.32 | 6.17 | (9.85 | ) | 2.40 | ||||||||||||||||
Total from investment operations | (0.18 | ) | 2.90 | 4.30 | 6.16 | (9.75 | ) | 2.45 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | — | — | (0.10 | ) | (0.05 | ) | — | |||||||||||||||
Realized capital gains | — | — | — | (0.01 | ) | — | — | |||||||||||||||||
Total distributions | (0.04 | ) | — | — | (0.11 | ) | (0.05 | ) | — | |||||||||||||||
Net asset value at end of period | $ | 27.87 | $ | 28.09 | $ | 25.19 | $ | 20.89 | $ | 14.84 | $ | 24.64 | ||||||||||||
Total return(B) | (0.59 | %)(C) | 11.47 | % | 20.58 | % | 41.53 | % | (39.58 | %) | 11.04 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 547,866 | $ | 385,411 | $ | 331,733 | $ | 352,847 | $ | 206,369 | $ | 31,679 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(D) | 0.99 | % | 0.99 | % | 0.99 | % | 0.97 | % | 1.00 | % | ||||||||||||
Gross expenses | 1.10 | %(D) | 1.14 | % | 1.13 | % | 1.06 | % | 1.06 | % | 1.04 | % | ||||||||||||
Net investment income (loss) | 0.33 | %(D) | 0.34 | % | (0.10 | %) | (0.06 | %) | 0.95 | % | 0.21 | % | ||||||||||||
Portfolio turnover rate | 69 | %(C)(E) | 91 | % | 76 | % | 83 | % | 126 | % | 72 | % |
(A) | The net investment income per share is based on average shares outstanding for the period or year. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
25 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund — Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 22.41 | $ | 24.91 | $ | 20.18 | $ | 12.95 | $ | 21.16 | $ | 24.17 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.16 | ) | (0.03 | ) | (0.03 | ) | (0.01 | ) | (0.12 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.04 | ) | (1.05 | ) | 4.76 | 7.26 | (7.96 | ) | 0.01 | |||||||||||||||
Total from investment operations | (0.06 | ) | (1.21 | ) | 4.73 | 7.23 | (7.97 | ) | (0.11 | ) | ||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (1.29 | ) | — | — | (0.24 | ) | (2.90 | ) | |||||||||||||||
Net asset value at end of period | $ | 22.35 | $ | 22.41 | $ | 24.91 | $ | 20.18 | $ | 12.95 | $ | 21.16 | ||||||||||||
Total return(A) | (0.27 | %)(B) | (3.68 | %) | 23.44 | % | 55.83 | % | (37.67 | %) | (1.53 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 294,436 | $ | 330,808 | $ | 584,089 | $ | 583,543 | $ | 397,756 | $ | 649,891 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.42 | %(C) | 1.40 | % | 1.47 | % | 1.50 | % | 1.50 | % | 1.47 | % | ||||||||||||
Gross expenses | 1.42 | %(C) | 1.40 | % | 1.47 | % | 1.51 | % | 1.53 | % | 1.47 | % | ||||||||||||
Net investment loss | (0.18 | %)(C) | (0.79 | %) | (0.13 | %) | (0.15 | %) | (0.70 | %) | (0.53 | %) | ||||||||||||
Portfolio turnover rate | 6 | %(B) | 64 | % | 99 | % | 62 | % | 71 | % | 64 | % |
Touchstone Mid Cap Growth Fund — Class B
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 18.48 | $ | 20.89 | $ | 16.98 | $ | 10.98 | $ | 18.13 | $ | 21.25 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.07 | ) | (0.48 | ) | (0.10 | ) | (0.16 | ) | (0.15 | ) | (0.28 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.02 | ) | (0.64 | ) | 4.01 | 6.16 | (6.76 | ) | 0.06 | |||||||||||||||
Total from investment operations | (0.09 | ) | (1.12 | ) | 3.91 | 6.00 | (6.91 | ) | (0.22 | ) | ||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (1.29 | ) | — | — | (0.24 | ) | (2.90 | ) | |||||||||||||||
Net asset value at end of period | $ | 18.39 | $ | 18.48 | $ | 20.89 | $ | 16.98 | $ | 10.98 | $ | 18.13 | ||||||||||||
Total return(A) | (0.49 | %)(B) | (3.99 | %) | 23.03 | % | 54.64 | % | (38.12 | %) | (2.29 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 6,949 | $ | 10,681 | $ | 23,376 | $ | 32,762 | $ | 29,521 | $ | 61,977 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.87 | %(C) | 1.59 | % | 1.77 | % | 2.25 | % | 2.25 | % | 2.25 | % | ||||||||||||
Gross expenses | 1.87 | %(C) | 1.59 | % | 1.82 | % | 2.38 | % | 2.34 | % | 2.27 | % | ||||||||||||
Net investment loss | (0.63 | %)(C) | (0.97 | %) | (0.43 | %) | (0.90 | %) | (0.85 | %) | (1.31 | %) | ||||||||||||
Portfolio turnover rate | 6 | %(B) | 64 | % | 99 | % | 62 | % | 71 | % | 64 | % |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
26 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund — Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 18.31 | $ | 20.81 | $ | 17.00 | $ | 10.99 | $ | 18.15 | $ | 21.27 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.09 | ) | (0.36 | ) | (0.17 | ) | (0.14 | ) | (0.14 | ) | (0.27 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.02 | ) | (0.85 | ) | 3.98 | 6.15 | (6.78 | ) | 0.05 | |||||||||||||||
Total from investment operations | (0.11 | ) | (1.21 | ) | 3.81 | 6.01 | (6.92 | ) | (0.22 | ) | ||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (1.29 | ) | — | — | (0.24 | ) | (2.90 | ) | |||||||||||||||
Net asset value at end of period | $ | 18.20 | $ | 18.31 | $ | 20.81 | $ | 17.00 | $ | 10.99 | $ | 18.15 | ||||||||||||
Total return(A) | (0.60 | %)(B) | (4.43 | %) | 22.41 | % | 54.69 | % | (38.14 | %) | (2.28 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 143,775 | $ | 162,693 | $ | 223,376 | $ | 218,413 | $ | 158,782 | $ | 302,422 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.18 | %(C) | 2.17 | % | 2.24 | % | 2.25 | % | 2.25 | % | 2.24 | % | ||||||||||||
Gross expenses | 2.19 | %(C) | 2.17 | % | 2.27 | % | 2.31 | % | 2.31 | % | 2.24 | % | ||||||||||||
Net investment loss | (0.94 | %)(C) | (1.56 | %) | (0.90 | %) | (0.90 | %) | (0.84 | %) | (1.30 | %) | ||||||||||||
Portfolio turnover rate | 6 | %(B) | 64 | % | 99 | % | 62 | % | 71 | % | 64 | % |
Touchstone Mid Cap Growth Fund — Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2012 | Year Ended March 31, | Period Ended March 31, | ||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009(D) | ||||||||||||||||
Net asset value at beginning of period | $ | 22.63 | $ | 25.07 | $ | 20.27 | $ | 12.96 | $ | 13.20 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.02 | (0.10 | ) | 0.01 | 0.01 | 0.02 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.04 | ) | (1.05 | ) | 4.79 | 7.30 | (0.26 | ) | ||||||||||||
Total from investment operations | (0.02 | ) | (1.15 | ) | 4.80 | 7.31 | (0.24 | ) | ||||||||||||
Distributions from: | ||||||||||||||||||||
Realized capital gains | — | (1.29 | ) | — | — | — | ||||||||||||||
Net asset value at end of period | $ | 22.61 | $ | 22.63 | $ | 25.07 | $ | 20.27 | $ | 12.96 | ||||||||||
Total return(A) | (0.09 | %)(B) | (3.42 | %) | 23.68 | % | 56.40 | % | (1.82 | %)(B) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 141,837 | $ | 123,593 | $ | 47,470 | $ | 26,162 | $ | 3 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 1.09 | %(C) | 1.11 | % | 1.24 | % | 1.25 | % | 1.25 | %(C) | ||||||||||
Gross expenses | 1.09 | %(C) | 1.11 | % | 1.24 | % | 1.26 | % | 1.63 | %(C) | ||||||||||
Net investment income (loss) | 0.15 | %(C) | (0.49 | %) | 0.05 | % | 0.14 | % | 1.11 | %(C) | ||||||||||
Portfolio turnover rate | 6 | %(B) | 64 | % | 99 | % | 62 | % | 71 | %(B) |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Represents the period from commencement of operations (February 2, 2009) through March 31, 2009. |
See accompanying Notes to Financial Statements.
27 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund — Class Institutional
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | Period | |||||||
September | Ended | |||||||
30, 2012 | March 31, | |||||||
(Unaudited) | 2012(A) | |||||||
Net asset value at beginning of period | $ | 22.65 | $ | 25.30 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.02 | (0.03 | ) | |||||
Net realized and unrealized gains (losses) on investments | (0.03 | ) | (1.33 | ) | ||||
Total from investment operations | (0.01 | ) | (1.36 | ) | ||||
Distributions from: | ||||||||
Realized capital gains | — | (1.29 | ) | |||||
Net asset value at end of period | $ | 22.64 | $ | 22.65 | ||||
Total return | (0.04 | %)(B) | (4.22 | %)(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 37,998 | $ | 25,550 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 1.02 | %(C) | 1.03 | %(C) | ||||
Gross expenses | 1.02 | %(C) | 1.17 | %(C) | ||||
Net investment income (loss) | 0.22 | %(C) | (0.41 | %) | ||||
Portfolio turnover rate | 6 | %(B) | 64 | %(B) |
(A) | Represents the period from commencement of operations (April 1, 2011) through March 31, 2012. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
28 |
Notes to Financial Statements
September 30, 2012 (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 under a Declaration of Trust dated November 18, 1982. The Trust consists of twenty two funds including the following four funds, individually, a “Fund”, and collectively, the “Funds”:
Touchstone Diversified Small Cap Growth Fund (“Diversified Small Cap Growth Fund”)
Touchstone Growth Opportunities Fund (“Growth Opportunities Fund”)
Touchstone Large Cap Growth Fund (“Large Cap Growth Fund”)
Touchstone Mid Cap Growth Fund (“Mid Cap Growth Fund”)
The Diversified Small Cap Growth Fund and the Mid Cap Growth Fund are each an open-end, diversified, management investment company. The Growth Opportunities Fund and the Large Cap Growth Fund are each an open-end, non-diversified management investment company.
The Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The Funds are registered to offer different classes of shares: Class A shares, Class B shares, Class C shares, Class Y shares, and Institutional Class shares. 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 objectives, 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:
Security valuation and fair value measurements — All investments in securities are recorded at their estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
• 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 the 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. For example, money market instruments are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2. Transfers in and out of the levels are recognized at the value at the end of the period. During the period ended September 30, 2012, there were no transfers between Levels 1, 2 and 3.
The aggregate value by input level, as of September 30, 2012, for each Fund’s investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, if applicable, is included in each Fund’s Portfolio of Investments, which also includes a breakdown of the Fund’s investments by geographic/industry concentration. The Funds did not hold any Level 3 categorized securities during the six months ended September 30, 2012.
The Funds’ portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (currently 4:00 p.m., Eastern time). Portfolio securities traded on stock exchanges are valued
29 |
Notes to Financial Statements (Continued)
at the last sale price, and to the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”). Securities not traded on a particular day, or for which the last sale price is not readily available, are valued at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service 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 value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment. Money market instruments and other debt securities with a remaining maturity of less than 60 days are valued at amortized cost, which approximates market value and are categorized in Level 2. Securities for which market quotations or the NOCP are not readily available are valued based on fair value as determined by or under the direction of the Board of Trustees and are categorized in Level 3. Shares of open end mutual funds in which the Funds invest are valued at their respective net asset values as reported by the underlying funds and are categorized in Level 1. The prices for foreign securities are reported in local currency and translated into to U.S. dollars using currency exchange rates.
For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security’s last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates its net asset value if an event that could materially affect the value of those securities (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Fund calculates its net asset value.
A Significant Event may relate to a single issuer or to an entire market sector. If the Advisor or Sub-Advisor of a Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Fair Value Committee Meeting be called. In addition, the Funds’ Administrator or Sub-Administrator monitors price movements among certain selected indices, securities and/or baskets of securities that may be an indicator that the closing prices received earlier from foreign exchanges or markets may not reflect market value at the time the Fund calculates its net asset value. If price movements in a monitored index or security exceed levels established by the Advisor, the Sub-Administrator notifies the Advisor or Sub-Advisor for any Fund holding the relevant securities that such limits have been exceeded. In such event, the Advisor makes the determination whether a Fair Value Committee meeting should be called based on the information provided. These securities are categorized in Level 2.
New accounting pronouncements — In December 2011, the FASB issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under IFRS. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU 2011-11 on the financial statements and disclosures.
In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and the International Financial Reporting Standards (IFRS).” ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to categorize within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement; the valuation processes used by the reporting entity;
30 |
Notes to Financial Statements (Continued)
and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years.
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.
Portfolio securities loaned — Each Fund may lend its portfolio securities. Lending portfolio securities exposes a Fund 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 Fund 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 in an amount at least equal to the market value of the loaned securities. The loaned securities are secured by collateral valued at least equal, at all times, to the fair value of the securities loaned plus accrued interest. 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 by the Funds’ custodian into an approved investment vehicle.
As of September 30, 2012, the following Funds loaned securities and received collateral as follows:
Fair Value of | Value of | |||||||
Securities | Collateral | |||||||
Fund | Loaned | Received | ||||||
Diversified Small Cap Growth Fund | $ | 2,615,068 | $ | 2,684,106 | ||||
Growth Opportunities Fund | 1,252,979 | 1,281,105 |
All collateral received as cash is received, held and administered by the Funds’ custodian for the benefit of the Funds in the applicable custody account or other account established for the purpose of holding collateral.
Funds participating in securities lending receive compensation in the form of fees, or retain a portion of interest or dividends on the investment of any cash received as collateral. The Funds also continue to receive interest or dividends on the securities loaned.
Unrealized gain or loss on the fair value of the securities loaned that may occur during the term of the loan is recognized by the Funds. The Funds have the right under the lending agreement to recover the securities from the borrower on demand.
Share valuation — The net asset value 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 Funds is equal to the net asset value per share plus a sales load equal to 6.10% of the net asset value (or 5.75% of the offering price). There is no sales load
31 |
Notes to Financial Statements (Continued)
on purchases of $1 million or more of Class A Shares. The maximum offering price per share of Class B, Class C, Class Y, and Institutional Class shares of the Funds is equal to the net asset value per share.
The redemption price per share of each class of shares of the Funds is generally equal to the net asset value per share. However, Class A redemptions that were part of a no load $1 million subscription may be subject to a contingent deferred sales charge (“CDSC”) of up to 1%. Class B shares of the Funds are subject to a contingent deferred sales load of 5.00% in the event of a shareholder redemption within a one-year period of purchase. The contingent deferred sales load will be incrementally reduced over time. After the 6th year, there is no contingent deferred sales load. Class C shares of the Funds are subject to a contingent deferred sales load of 1.00% of the original purchase price if redeemed within a one-year period from the date of purchase.
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.
Distributions to shareholders — Each Fund declares and distributes net investment income, if any, annually, as a dividend to shareholders. Any net realized capital gains on sales of securities for all Funds are distributed to shareholders at least annually. Income distributions and capital gain distributions are determined in accordance with income tax regulations.
Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the Funds 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 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, which may cause the net asset value (“NAV”) as stated in the accompanying financial statements to be different than the NAV applied to Fund share transactions. 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.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the period ended September 30, 2012:
Diversified Small Cap Growth Fund | Growth Opportunities Fund | Large Cap Growth Fund | Mid Cap Growth Fund | |||||||||||||
Purchases of investment securities * | $ | 10,437,926 | $ | 76,631,169 | $ | 532,613,776 | $ | 221,557,303 | ||||||||
Proceeds from sales and maturities | $ | 14,889,966 | $ | 119,178,634 | $ | 570,256,546 | $ | 249,234,529 |
* | The cost of purchases excludes $55,514,925 and $173,260,180 on Growth Opportunities Fund and Large Cap Growth Fund, respectively, from securities received from the acquired funds. See Note 7 in the Notes to Financial Statements. |
32 |
Notes to Financial Statements (Continued)
4. Transactions with Affiliates and Other Related Parties
Certain officers of theTrust are also officers of the Advisor (Touchstone Advisors, Inc.), the Underwriter (Touchstone Securities, Inc.) and/or BNY Mellon Investment Servicing (U.S) Inc. (“BNY Mellon”) the Sub-Administrator and Transfer Agent to the Funds. The Advisor and Underwriter are each wholly owned, indirect subsidiaries of The Western and Southern Life Insurance Company (“Western-Southern”).
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under terms of an Advisory Agreement. Under the Advisory Agreement, the Funds pay the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets as shown in the table below.
Diversified Small Cap Growth Fund | 1.05% |
Growth Opportunities Fund | 0.75% on the first $500 million |
0.70% of the next $500 million | |
0.65% of such assets in excess of $1 billion | |
Large Cap Growth Fund | 0.75% on the first $200 million |
0.70% of the next $800 million | |
0.65% of such assets in excess of $1 billion | |
Mid Cap Growth Fund | 0.75% on the first $500 million |
0.70% of the next $500 million | |
0.65% of such assets in excess of $1 billion |
The Advisor has entered into investment sub-advisory agreements with the following parties:
Fort Washington Investment Advisors, Inc.*
Diversified Small Cap Growth Fund
Navellier & Associates, Inc.
Large Cap Growth Fund
Westfield Capital Management Company, L.P.
Growth Opportunities Fund
Mid Cap Growth Fund
* Affiliate of the Advisor
The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.
The Advisor entered into an Expense Limitation Agreement to contractually limit operating expenses of the Funds. The maximum 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 advisory fees, administration fees and reimburse expenses in order to maintain expense limitations for the Funds as follows:
Class A | Class B | Class C | Class Y | Institutional Class | ||||||||||||||||
Diversified Small Cap Growth Fund | 1.40 | % | — | 2.15 | % | 1.15 | % | — | ||||||||||||
Growth Opportunities Fund* | 1.20 | % | — | 1.95 | % | 0.95 | % | 0.84 | % | |||||||||||
Large Cap Growth Fund** | 1.20 | % | 1.95 | % | 1.95 | % | 0.95 | % | — | |||||||||||
Mid Cap Growth Fund | 1.43 | % | 2.18 | % | 2.18 | % | 1.18 | % | 1.03 | % |
* | Prior to September 10, 2012, the expense limitations for Class A, Class C, Class Y, and Institutional Class shares of Growth Opportunities Fund were 1.24%, 1.99%, 0.99%, and 0.84%, respectively. |
** | Prior to September 10, 2012, the expense limitations for Class A, Class B, Class C and Class Y were 1.25%, 2.00%, 2.00% and 0.99%, respectively. |
33 |
Notes to Financial Statements (Continued)
These expense limitations will remain in effect until at least July 29, 2013 for Diversified Small Cap Growth fund and Mid Cap Growth fund and until at least September 10, 2013 for Growth Opportunities and Large Cap Growth fund.
During the period ended September 30, 2012, the Advisor waived investment advisory fees and administration fees and/or reimbursed expenses of the Funds as follows:
Investment Advisory Fees Waived | Administration Fees Waived | Other Operating Expenses Reimbursed | ||||||||||
Diversified Small Cap Growth Fund | $ | 2,636 | $ | 29,669 | $ | 47,696 | ||||||
Growth Opportunities Fund | — | 102,996 | 31,492 | |||||||||
Large Cap Growth Fund | — | — | 351,588 | |||||||||
Mid Cap Growth Fund | — | — | 10,061 |
Effective July 20, 2012, under the terms of the Expense Limitation Agreement the Advisor is entitled to recover, subject to approval by the Fund’s Board of Trustees, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation and/or assumed expenses for the Fund. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount.
At September 30, 2012, the Advisor may seek recoupment of previously waived and reimbursed fees as follows:
Fund | Expiration July 31, 2015 | |||
Diversified Small Cap Growth Fund | $ | 19,261 | ||
Growth Opportunities Fund | 40,266 | |||
Large Cap Growth Fund | 75,875 | |||
Mid Cap Growth Fund | — |
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration and Accounting Services 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 Securities and Exchange Commission and state securities authorities, as well as materials for meetings of the Board of Trustees; calculating the daily net asset value per share; and maintaining the financial books and records of each Fund. For its services, the Advisor receives an annual fee of 0.20% of the aggregate average daily net assets of the Trust, Touchstone Investment Trust (excluding Institutional Money Market Fund), Touchstone Funds Group Trust, and Touchstone Tax-Free Trust up to and including $6 billion; 0.16% of the next $4 billion of aggregate average daily net assets; and 0.12% of the aggregate average daily net assets of all such assets in excess of $10 billion. The fee is allocated among the Funds on the basis of relative daily net assets.
Effective November 12, 2011, the Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrator and accounting services to the Trust and is compensated directly by the Advisor, not the Trust. Prior to November 12, 2011, JPMorgan Chase Bank, N.A.(“JPMorgan”) served as the Sub-Administrator and was compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Effective December 5, 2011, 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
34 |
Notes to Financial Statements (Continued)
disbursing agent and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee per shareholder account from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.
Prior to December 5, 2011, under the terms of the Transfer Agent Agreement between the Trust and JPMorgan, JPMorgan maintained the records of each shareholder’s account, answered shareholders’ inquiries concerning their accounts, processed purchases and redemptions of each Fund’s shares, acted as dividend and distribution disbursing agent and performed other shareholder service functions. For these services, JPMorgan received a monthly fee per shareholder account from each Fund. In addition, each Fund paid out-of-pocket expenses incurred by JPMorgan, including, but not limited to, postage and supplies.
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which Class A shares of each Fund may directly incur or reimburse the Advisor or the Underwriter for expenses related to the distribution and promotion of shares. The annual limitation for payment of such expenses under the Class A Plan is 0.25% of average daily net assets attributable to such shares.
The Trust also has a Plan of Distribution (Class B and Class C Plan) under which Class B and Class C shares of each Fund may directly incur or reimburse the Advisor or the Underwriter for expenses related to the distribution and promotion of shares. The annual limitation for payment of such expenses under the Class B and Class C Plan is 1.00% of average daily net assets attributable to Class B and Class C shares.
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 Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of shares of the following Funds during the period ended September 30, 2012:
Amount | ||||
Diversified Small Cap Growth Fund | $ | 732 | ||
Growth Opportunities Fund | 2,133 | |||
Large Cap Growth Fund | 57,333 | |||
Mid Cap Growth Fund | 27,591 |
In addition, the Underwriter collected contingent deferred sales charges on the redemption of Class A, Class B and Class C shares of the following Funds during the period ended September 30, 2012:
Class | Class | Class | ||||||||||
A | B | C | ||||||||||
Diversified Small Cap Growth Fund | $ | — | $ | — | $ | 61 | ||||||
Growth Opportunities Fund | — | — | 480 | |||||||||
Large Cap Growth Fund | — | 5,459 | 5,309 | |||||||||
Mid Cap Growth Fund | 31 | 7,635 | 5,408 |
AFFILIATED INVESTMENTS
Each Fund may invest in the Touchstone Institutional Money Market Fund, subject to compliance with several conditions set forth in an order received by the Trust from the Securities and Exchange Commission. To the extent that the other Touchstone Funds are invested in the Touchstone Institutional Money Market Fund, the Advisor and Administrator will be paid additional fees from the Touchstone Institutional Money Market Fund that will not be waived or reimbursed.
35 |
Notes to Financial Statements (Continued)
A summary of each Fund’s investment, as applicable, in the Touchstone Institutional Money Market Fund for the period ended September 30, 2012, is as follows:
Share Activity | ||||||||||||||||||||||||
Balance 03/31/12 | Purchases | Sales | Balance 09/30/12 | Dividends | Value 09/30/12 | |||||||||||||||||||
Diversified Small Cap Growth Fund | 1,196,631 | 5,300,199 | (5,815,980 | ) | 680,850 | $ | 999 | $ | 680,850 | |||||||||||||||
Growth Opportunities Fund | — | 60,389,296 | (54,672,890 | ) | 5,716,406 | $ | 2,105 | $ | 5,716,406 | |||||||||||||||
Large Cap Growth Fund | 7,532,678 | 183,867,021 | (173,742,010 | ) | 17,657,689 | $ | 14,216 | $ | 17,657,689 | |||||||||||||||
Mid Cap Growth Fund | 3,494,953 | 161,235,537 | (144,211,079 | ) | 20,519,411 | $ | 13,520 | $ | 20,519,411 |
5. 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. 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 for the years ended March 31, 2012 and 2011 was as follows:
Diversified Small Cap Growth Fund | Growth Opportunities Fund | |||||||||||||||
Year Ended March 31, 2012 | Year Ended March 31, 2011 | Year Ended March 31, 2012 | Year Ended March 31, 2011 | |||||||||||||
From ordinary income | $ | — | $ | — | $ | — | $ | 545,653 |
Large Cap Growth Fund | Mid Cap Growth Fund | |||||||||||||||
Year Ended March 31, 2012 | Year Ended March 31, 2011 | Year Ended March 31, 2012 | Year Ended March 31, 2011 | |||||||||||||
From long-term capital gains | $ | — | $ | — | $ | 42,015,658 | $ | — |
36 |
Notes to Financial Statements (Continued)
The following information is computed on a tax basis for each item as of March 31, 2012:
Diversified | Growth | Large Cap | Mid Cap | |||||||||||||
Small Cap | Opportunities | Growth | Growth | |||||||||||||
Growth Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 32,923,405 | $ | 151,033,572 | $ | 583,214,521 | $ | 570,019,947 | ||||||||
Gross unrealized appreciation | 6,207,252 | 5,772,771 | 186,957,367 | 99,866,053 | ||||||||||||
Gross unrealized depreciation | (1,504,449 | ) | (2,882,617 | ) | (5,075,754 | ) | (20,220,193 | ) | ||||||||
Net unrealized appreciation | 4,702,803 | 2,890,154 | 181,881,613 | 79,645,860 | ||||||||||||
Accumulated capital and other losses | (14,161,623 | ) | (16,634,494 | ) | (107,859,196 | ) | — | |||||||||
Undistributed ordinary income | — | — | 639,110 | — | ||||||||||||
Post - October and Qualified Late-Year losses | (53,200 | ) | — | (11,370,792 | ) | — | ||||||||||
Undistributed capital gains | — | — | — | 13,992,749 | ||||||||||||
Accumulated earnings | $ | (9,512,020 | ) | $ | (13,744,340 | ) | $ | 63,290,735 | $ | 93,638,609 |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals.
As of March 31, 2012, the Funds had the following capital loss carryforwards for federal income tax purposes:
2013 | 2014 | 2016 | 2017 | 2018 | Total | |||||||||||||||||||
Diversified Small Cap Growth Fund | $ | — | $ | 4,602,156 | $ | 3,627,106 | $ | 5,932,361 | $ | — | $ | 14,161,623 | ||||||||||||
Growth Opportunities Fund | 1,976,702 | — | 1,053,666 | * | 12,174,612 | * | 1,429,514 | * | 16,634,494 | |||||||||||||||
Large Cap Growth Fund | — | — | 3,059,206 | * | 3,580,263 | * | 101,219,727 | 107,859,196 |
* Amount may be limited by current income tax regulations.
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.
As of September 30, 2012, the Trust had the following federal tax cost resulting in net unrealized appreciation (depreciation) as follows:
Fund | Federal Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Diversified Small Cap Growth Fund | $ | 29,236,755 | $ | 5,200,409 | $ | (1,384,236 | ) | $ | 3,816,173 | |||||||
Growth Opportunities Fund | 174,603,437 | 13,180,225 | (3,548,146 | ) | 9,632,079 | |||||||||||
Large Cap Growth Fund | 813,550,120 | 170,434,268 | (6,546,906 | ) | 163,887,362 | |||||||||||
Mid Cap Growth Fund | 568,183,535 | 76,262,976 | (15,776,955 | ) | 60,486,021 |
The Funds have analyzed their tax positions taken on Federal income tax returns for all open tax years (tax years ended March 31, 2008 through 2011) and have concluded that no provision for income tax is required in their financial statements.
The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Funds. In general, the provisions of the Act will be effective for the Funds’ fiscal year ending September 30, 2012. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses must be utilized before pre-enactment capital loss carryovers. Under the Act, new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment law, where capital losses could be carried forward for eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.
37 |
Notes to Financial Statements (Continued)
6. 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’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
7. Fund Mergers
On April 21, 2011, a Special Meeting of Shareholders was held to approve or disapprove an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Healthcare and Biotechnology Fund, a series of Touchstone Funds Group Trust, to the Large Cap Growth Fund in exchange for shares of the Large Cap Growth Fund and the subsequent liquidation of the Touchstone Healthcare and Biotechnology Fund. The Agreement and Plan of Reorganization was approved and the merger took place on May 6, 2011. The merger was approved as follows:
Number of Votes | ||||||||||||
For | Against | Abstain | ||||||||||
Healthcare and Biotechnology Fund | 756,446 | 79,632 | 28,822 |
The following is a summary of shares outstanding, net assets, net asset value per share, unrealized appreciation (depreciation) and realized gain (loss) immediately before and after the reorganization:
Before Reorganization | After Reorganization | |||||||||||
Healthcare and Biotechnology Fund | Large Cap Growth Fund | Large Cap Growth Fund | ||||||||||
Shares | 1,487,602 | 29,733,726 | 30,761,803 | |||||||||
Net Assets | $ | 25,653,016 | $ | 741,478,177 | $ | 767,131,193 | ||||||
Net Asset Value | 17.24 | 24.94 | 24.94 | |||||||||
Unrealized Appreciation | 7,230,578 | 184,155,041 | 191,385,619 | |||||||||
Accumulated Net Realized Gain (Loss) | (7,746,291 | ) | (193,595,589 | ) | (193,595,589 | ) |
38 |
Notes to Financial Statements (Continued)
At a meeting held on March 13, 2012, the Board of Trustees of the Trust approved an Agreement and Plans of Reorganization (the “Plans”) providing for the transfer of all assets and liabilities of the Fifth Third Mid Cap Growth Fund and the Fifth Third Quality Growth Fund (each an “Acquired Fund”), each a series of Fifth Third Funds (“Fifth Third”), to the Touchstone Growth Opportunities Fund and the Touchstone Large Cap Growth Fund(each an “Acquiring Fund”), respectively. The mergers took place on September 10, 2012.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation immediately before and after the reorganization:
Before Reorganization | After Reorganization | |||||||||||
Fifth Third Mid Cap Growth Fund | Touchstone Growth Opportunities Fund | Touchstone Growth Opportunities Fund | ||||||||||
Class A * | ||||||||||||
Shares | 572,780 | (A) | 2,248,976 | 2,821,757 | ||||||||
Net Assets | $ | 14,817,828 | $ | 58,180,948 | $ | 72,998,776 | ||||||
Net Asset Value | $ | 25.87 | (A) | $ | 25.87 | $ | 25.87 | |||||
Class C | ||||||||||||
Shares | 20,324 | (B) | 366,835 | 387,159 | ||||||||
Net Assets | $ | 483,997 | $ | 8,736,093 | $ | 9,220,090 | ||||||
Net Asset Value | $ | 23.81 | (B) | $ | 23.81 | $ | 23.81 | |||||
Class Y * | ||||||||||||
Shares | 1,938,310 | (C) | 515,855 | 2,454,164 | ||||||||
Net Assets | $ | 50,516,751 | $ | 13,444,300 | $ | 63,691,051 | ||||||
Net Asset Value | $ | 26.06 | (C) | $ | 26.06 | $ | 26.06 | |||||
Institutional Class | ||||||||||||
Shares | — | $ | 2,695,048 | $ | 2,695,048 | |||||||
Net Assets | $ | — | $ | 70,607,136 | $ | 70,607,136 | ||||||
Net Asset Value | $ | — | $ | 26.20 | $ | 26.20 | ||||||
Total Fund | ||||||||||||
Shares Outstanding | 4,987,746 | 5,826,714 | 8,358,128 | |||||||||
Net Assets | $ | 65,818,576 | $ | 150,968,477 | $ | 216,787,053 | ||||||
Unrealized Appreciation (Depreciation) | $ | 10,318,849 | $ | 9,176,645 | $ | 19,495,494 |
(A) | Reflects a 0.4885:1 stock split on Class A Shares and a 0.4272:1 stock split on Class B Shares which occurred on the date of reorganization, September 07, 2012. |
(B) | Reflects a 0.4334:1 stock split occurred on the date of reorganization, September 07, 2012. |
(C) | Reflects a 0.5149:1 stock split which occurred on the date of reorganization, September 07, 2012. |
Before Reorganization | After Reorganization | |||||||||||
Fifth Third Quality Growth Fund | Touchstone Large Cap Growth Fund | Touchstone Large Cap Growth Fund | ||||||||||
Class A * | ||||||||||||
Shares | 2,188,990 | (A) | 8,811,417 | 11,000,407 | ||||||||
Net Assets | $ | 60,528,345 | $ | 243,647,557 | $ | 304,175,902 | ||||||
Net Asset Value | $ | 27.65 | (A) | $ | 27.65 | $ | 27.65 | |||||
Class B | ||||||||||||
Shares | — | 336,597 | 336,597 | |||||||||
Net Assets | $ | — | $ | 8,863,111 | $ | 8,863,111 | ||||||
Net Asset Value | $ | — | $ | 26.33 | $ | 26.33 |
39 |
Notes to Financial Statements (Continued)
Before Reorganization | After Reorganization | |||||||||||
Fifth Third Quality Growth Fund | Touchstone Large Cap Growth Fund | Touchstone Large Cap Growth Fund | ||||||||||
Class C | ||||||||||||
Shares | 39,069 | (B) | 4,454,876 | 4,493,945 | ||||||||
Net Assets | $ | 1,021,152 | $ | 116,437,117 | $ | 117,458,269 | ||||||
Net Asset Value | $ | 26.14 | (B) | $ | 26.14 | $ | 26.14 | |||||
Class Y * | ||||||||||||
Shares | 6,984,781 | (C) | 14,937,356 | 21,922,137 | ||||||||
Net Assets | $ | 195,449,178 | $ | 417,980,580 | $ | 613,429,758 | ||||||
Net Asset Value | $ | 27.98 | (C) | $ | 27.98 | $ | 27.98 | |||||
Total Fund | ||||||||||||
Shares Outstanding | 14,565,867 | 28,540,246 | 37,753,086 | |||||||||
Net Assets | $ | 256,998,675 | $ | 786,928,365 | $ | 1,043,927,040 | ||||||
Unrealized Appreciation (Depreciation) | $ | 83,525,044 | $ | 164,097,186 | $ | 247,622,230 |
(A) | Reflects a 0.6217:1 stock split on Class A Shares and a 0.5655 stock split on Class B Shares which occurred on the date of reorganization, September 07, 2012. |
(B) | Reflects a 0.5782:1 stock split occurred on the date of reorganization, September 07, 2012. |
(C) | Reflects a 0.6364:1 stock split which occurred on the date of reorganization, September 07, 2012. |
* | The Acquired Funds had Class B shares and Institutional Class shares outstanding immediately prior to the reorganization, which were exchanged for Class A shares and Class Y shares, respectively, of the Acquiring Funds. |
Assuming the reorganization had been completed on April 1, 2012, the results of operations for the Growth Opportunities Fund and the Large Cap Growth Fund for the six months ended September 30, 2012 would have been as follows:
Touchstone Growth Opportunities Fund | Touchstone Large Cap Growth Fund | |||||||
Net investment income (loss) | $ | (308,748 | ) | $ | 734,519 | |||
Net realized and unrealized gain (loss) on investments | $ | 15,219,727 | $ | 73,269,865 | ||||
Net increase in asset from operations | $ | 14,910,979 | $ | 74,004,384 |
Because the combined investment portfolios have been managed as single portfolios since the Reorganizations were completed, it is not practical to separate the amounts of revenue and earnings to the Acquiring Funds that have been included in their statements of operations since the mergers.
8. Subsequent Events
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued, and has determined that there were no subsequent events.
40 |
Other Items (Unaudited)
Proxy Voting Guidelines
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 and information regarding how those proxies were voted during the twelve month period ended June 30 are available without charge upon request by calling toll free 1.800.543.0407. These items are also available on the Securities and Exchange Commission’s (the Commission) website at http://www.sec.gov.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing: (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1.800.543.0407. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Schedule of Shareholder Expenses
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions; and (2) ongoing costs, including investment advisory fees, shareholder servicing 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 April 1, 2012 through September 30, 2012.
Actual Expenses
The first line of 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 September 30, 2012” to estimate the expenses you paid on your account during this period.
41 |
Other Items (Unaudited) (Continued)
Schedule of Shareholder Expenses (Continued)
Hypothetical Example for Comparison Purposes
The second line of 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.
Net Expense Ratio Annualized September 30, 2012 | Beginning Account Value April 1, 2012 | Ending Account Value September 30, 2012 | Expenses Paid During the Six Months Ended September 30, 2012 | |||||||||||||||||
Touchstone Diversified Small Cap Growth Fund | ||||||||||||||||||||
Class A | Actual | 1.40 | % | $ | 1,000.00 | $ | 998.20 | $ | 7.01 | |||||||||||
Class A | Hypothetical | 1.40 | % | $ | 1,000.00 | $ | 1,018.05 | $ | 7.08 | |||||||||||
Class C | Actual | 2.15 | % | $ | 1,000.00 | $ | 993.70 | $ | 10.75 | |||||||||||
Class C | Hypothetical | 2.15 | % | $ | 1,000.00 | $ | 1,014.29 | $ | 10.86 | |||||||||||
Class Y | Actual | 1.15 | % | $ | 1,000.00 | $ | 998.30 | $ | 5.76 | |||||||||||
Class Y | Hypothetical | 1.15 | % | $ | 1,000.00 | $ | 1,019.30 | $ | 5.82 | |||||||||||
Touchstone Growth Opportunities Fund | ||||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,012.10 | $ | 6.25 | |||||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.85 | $ | 6.28 | |||||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 1,008.50 | $ | 10.02 | |||||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.09 | $ | 10.05 | |||||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,013.60 | $ | 5.00 | |||||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 | |||||||||||
Institutional Class | Actual | 0.84 | % | $ | 1,000.00 | $ | 1,014.30 | $ | 4.24 | |||||||||||
Institutional Class | Hypothetical | 0.84 | % | $ | 1,000.00 | $ | 1,020.86 | $ | 4.26 | |||||||||||
Touchstone Large Cap Growth Fund | ||||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 992.80 | $ | 6.19 | |||||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.85 | $ | 6.28 | |||||||||||
Class B | Actual | 1.69 | % | $ | 1,000.00 | $ | 990.60 | $ | 8.43 | |||||||||||
Class B | Hypothetical | 1.69 | % | $ | 1,000.00 | $ | 1,016.60 | $ | 8.54 | |||||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 989.00 | $ | 9.92 | |||||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.09 | $ | 10.05 | |||||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 994.10 | $ | 4.95 | |||||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 |
42 |
Other Items (Unaudited) (Continued)
Net Expense Ratio Annualized September 30, 2012 | Beginning Account Value April 1, 2012 | Ending Account Value September 30, 2012 | Expenses Paid During the Six Months Ended September 30, 2012* | |||||||||||||||||
Touchstone Mid Cap Growth Fund | ||||||||||||||||||||
Class A | Actual | 1.42 | % | $ | 1,000.00 | $ | 997.30 | $ | 7.11 | |||||||||||
Class A | Hypothetical | 1.42 | % | $ | 1,000.00 | $ | 1,017.95 | $ | 7.18 | |||||||||||
Class B | Actual | 1.87 | % | $ | 1,000.00 | $ | 995.10 | $ | 9.35 | |||||||||||
Class B | Hypothetical | 1.87 | % | $ | 1,000.00 | $ | 1,015.69 | $ | 9.45 | |||||||||||
Class C | Actual | 2.18 | % | $ | 1,000.00 | $ | 994.00 | $ | 10.90 | |||||||||||
Class C | Hypothetical | 2.18 | % | $ | 1,000.00 | $ | 1,014.14 | $ | 11.01 | |||||||||||
Class Y | Actual | 1.09 | % | $ | 1,000.00 | $ | 999.10 | $ | 5.46 | |||||||||||
Class Y | Hypothetical | 1.09 | % | $ | 1,000.00 | $ | 1,019.60 | $ | 5.52 | |||||||||||
Institutional Class | Actual | 1.02 | % | $ | 1,000.00 | $ | 999.60 | $ | 5.11 | |||||||||||
Institutional Class | Hypothetical | 1.02 | % | $ | 1,000.00 | $ | 1,019.95 | $ | 5.16 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by [183/365] (to reflect one-half year period). |
43 |
PRIVACY PROTECTION POLICY
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 Investment Trust, Touchstone Strategic Trust, Touchstone Tax-Free Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.,* Capital Analysts Incorporated 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 Annual Report.
44 |
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Cincinnati, OH 45202-4203
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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, MA 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
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 registrant’s second fiscal quarter of 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. 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. |
(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 | 11/21/12 |
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 | 11/21/12 |
By (Signature and Title)* | /s/ Terrie A. Wiedenheft | |
Terrie A. Wiedenheft, Controller and Treasurer | ||
(principal financial officer) |
Date | 11/21/12 |
* Print the name and title of each signing officer under his or her signature.