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, 2015
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, 2015
(Unaudited)
Semi-Annual Report
Touchstone Strategic Trust |
Touchstone Flexible Income Fund |
Touchstone Focused Fund |
Touchstone Growth Opportunities Fund |
Touchstone International Value Fund |
Touchstone Mid Cap Growth Fund |
Touchstone Sands Capital Emerging Markets Growth Fund |
Touchstone Small Cap Growth Fund |
Touchstone Sustainability and Impact Equity Fund |
(formerly known as Touchstone Large Cap Growth Fund) |
Table of Contents
This report identifies the Funds' investments on September 30, 2015. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.
2 |
Tabular Presentation of Portfolios of Investments (Unaudited)
September 30, 2015
The tables below provide each Fund’s geographic allocation, sector allocation and/or credit quality. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Flexible Income Fund | ||||
Credit Quality* | (% of Fixed Income Securities) | |||
AAA/Aaa | 49.9 | % | ||
AA/Aa | 7.7 | |||
A/A | 12.9 | |||
BBB/Baa | 15.3 | |||
BB/Ba | 7.6 | |||
B/B | 5.0 | |||
CCC/Caa | 0.1 | |||
Not Rated | 1.5 | |||
100.0 | % |
Credit Quality* | (% of Preferred Stocks) | |||
A/A | 14.2 | % | ||
BBB/Baa | 52.2 | |||
BB/Ba | 26.0 | |||
Not Rated | 7.6 | |||
100.0 | % |
Sector Allocation** | (% of Net Assets) | |||
Fixed Income Securities | 72.2 | % | ||
Preferred Stocks | 17.1 | |||
Common Stocks | ||||
Financials | 2.1 | |||
Consumer Discretionary | 0.5 | |||
Industrials | 0.5 | |||
Residential | 0.3 | |||
Consumer Staples | 0.2 | |||
Diversified | 0.2 | |||
Information Technology | 0.1 | |||
Exchange Traded Funds | 0.7 | |||
Purchased Call Option | 0.1 | |||
Investment Funds | 4.9 | |||
Other Assets/Liabilities (Net) | 1.1 | |||
Total | 100.0 | % |
Touchstone Focused Fund | ||||
Sector Allocation** | (% of Net Assets) | |||
Information Technology | 20.5 | % | ||
Health Care | 15.5 | |||
Financials | 15.2 | |||
Consumer Discretionary | 11.1 | |||
Consumer Staples | 10.8 | |||
Industrials | 9.8 | |||
Energy | 6.2 | |||
Materials | 4.3 | |||
Investment Funds | 9.4 | |||
Other Assets/Liabilities (Net) | (2.8 | ) | ||
Total | 100.0 | % |
Touchstone Growth Opportunities Fund | ||||
Sector Allocation** | (% of Net Assets) | |||
Information Technology | 29.8 | % | ||
Consumer Discretionary | 24.4 | |||
Health Care | 17.7 | |||
Industrials | 6.6 | |||
Energy | 5.1 | |||
Financials | 4.6 | |||
Materials | 4.0 | |||
Consumer Staples | 3.9 | |||
Investment Funds | 3.5 | |||
Other Assets/Liabilities (Net) | 0.4 | |||
Total | 100.0 | % |
* | Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer. |
** | Sector classifications are based upon the Global Industry Classification Standard (GICS®). |
3 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone International Value Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
United Kingdom | 20.5 | % | ||
Netherlands | 12.5 | |||
Switzerland | 11.6 | |||
Japan | 10.9 | |||
France | 5.7 | |||
Denmark | 4.6 | |||
Germany | 4.0 | |||
Singapore | 3.7 | |||
Spain | 3.0 | |||
Ireland | 2.7 | |||
Israel | 2.6 | |||
South Korea | 2.6 | |||
Austria | 2.3 | |||
Italy | 2.0 | |||
Thailand | 1.8 | |||
Brazil | 1.7 | |||
Norway | 1.6 | |||
Hong Kong | 1.1 | |||
United States | 1.0 | |||
Indonesia | 0.4 | |||
Investment Funds | 4.1 | |||
Other Assets/Liabilities (Net) | (0.4 | ) | ||
Total | 100.0 | % |
Touchstone Mid Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Health Care | 20.5 | % | ||
Consumer Discretionary | 18.6 | |||
Industrials | 17.1 | |||
Information Technology | 15.4 | |||
Financials | 12.2 | |||
Materials | 6.1 | |||
Energy | 3.9 | |||
Consumer Staples | 2.4 | |||
Investment Funds | 5.2 | |||
Other Assets/Liabilities (Net) | (1.4 | ) | ||
Total | 100.0 | % |
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
4 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Sands Capital Emerging Markets Growth Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
Cayman Islands | 17.0 | % | ||
South Africa | 7.5 | |||
Brazil | 5.1 | |||
Thailand | 3.6 | |||
Philippines | 3.4 | |||
Indonesia | 3.3 | |||
United Kingdom | 3.0 | |||
Taiwan | 2.7 | |||
Russia | 2.4 | |||
United States | 2.3 | |||
South Korea | 2.2 | |||
Turkey | 1.8 | |||
China | 1.7 | |||
Malaysia | 1.5 | |||
Peru | 1.3 | |||
Virgin Islands (British) | 1.1 | |||
Low Exercise Price Options | 35.0 | |||
Investment Funds | 2.3 | |||
Other Assets/Liabilities (Net) | 2.8 | |||
Total | 100.0 | % |
Touchstone Small Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Health Care | 27.5 | % | ||
Information Technology | 26.4 | |||
Consumer Discretionary | 15.5 | |||
Financials | 10.2 | |||
Industrials | 8.1 | |||
Consumer Staples | 3.9 | |||
Energy | 3.5 | |||
Materials | 2.0 | |||
Exchange Traded Fund | 1.6 | |||
Investment Funds | 11.6 | |||
Other Assets/Liabilities (Net) | (10.3 | ) | ||
Total | 100.0 | % |
Touchstone Sustainability and Impact Equity Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
United States | 58.2 | % | ||
Japan | 10.8 | |||
United Kingdom | 10.1 | |||
Switzerland | 3.8 | |||
Netherlands | 3.7 | |||
Sweden | 3.2 | |||
Germany | 2.8 | |||
China | 2.2 | |||
France | 2.0 | |||
Ireland | 1.1 | |||
Hong Kong | 0.8 | |||
Bermuda | 0.5 | |||
Investment Fund | 0.4 | |||
Other Assets/Liabilities (Net) | 0.4 | |||
Total | 100.0 | % |
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
5 |
Touchstone Flexible Income Fund – September 30, 2015 (Unaudited)
Principal | Market | |||||||
Amount(A) | Value | |||||||
Corporate Bonds — 40.0% | ||||||||
Financials — 28.8% | ||||||||
$ | 1,425,000 | Aflac, Inc., 3.250%, 3/17/25 | $ | 1,414,298 | ||||
2,000,000 | Allstate Corp. (The), 5.750%, 8/15/53(B) | 2,070,700 | ||||||
375,000 | American Financial Group, Inc., | |||||||
9.875%, 6/15/19 | 468,382 | |||||||
1,200,000 | American Tower Corp., REIT, | |||||||
4.500%, 1/15/18 | 1,262,345 | |||||||
2,300,000 | Australia & New Zealand Banking | |||||||
Group Ltd. EMTN, Ser K, | ||||||||
3.450%, 8/8/22(B) | 2,339,171 | |||||||
1,701,000 | Bank of America Corp., | |||||||
8.000%, 7/29/49(B)(C) | 1,777,545 | |||||||
3,480,000 | Bank of New York Mellon Corp. (The), | |||||||
Ser E, 4.950%, 12/29/49(B)(C) | 3,427,800 | |||||||
3,335,000 | BNP Paribas SA, 144a, | |||||||
7.375%, 12/29/49(B)(C) | 3,355,844 | |||||||
6,350,000 | Capital One Financial Corp., Ser E, | |||||||
5.550%, 12/29/49(B)(C) | 6,270,625 | |||||||
2,350,000 | Charles Schwab Corp. (The), | |||||||
7.000%, 2/28/49(B)(C) | 2,714,250 | |||||||
1,549,000 | Citigroup, Inc., 5.950%, 12/29/49(B)(C) | 1,527,701 | ||||||
3,422,000 | Citigroup, Inc., Ser N, | |||||||
5.800%, 11/29/49(B)(C) | 3,368,104 | |||||||
1,000,000 | Compass Bank, 3.875%, 4/10/25 | 932,200 | ||||||
2,101,000 | DDR Corp., MTN REIT, 7.500%, 7/15/18 | 2,403,578 | ||||||
1,809,747 | Doric Nimrod Air Finance Alpha Ltd. | |||||||
2012-1 Class B Pass Through Trust, | ||||||||
144a, 6.500%, 5/30/21 | 1,887,913 | |||||||
785,000 | Essex Portfolio LP, REIT, 3.500%, 4/1/25 | 762,347 | ||||||
1,850,000 | Export-Import Bank of Korea, | |||||||
4.375%, 9/15/21 | 2,030,684 | |||||||
1,500,000 | Federal Home Loan Mortgage Corp., | |||||||
2.375%, 1/13/22 | 1,544,864 | |||||||
1,650,000 | Ford Motor Credit Co. LLC, | |||||||
4.250%, 2/3/17 | 1,705,026 | |||||||
5,100,000 | General Electric Capital Corp., Ser A, | |||||||
7.125%, 12/15/49(B)(C) | 5,890,500 | |||||||
900,000 | General Electric Capital Corp., Ser B, | |||||||
6.250%, 12/29/49(B)(C) | 976,500 | |||||||
7,017,000 | Goldman Sachs Group, Inc. (The), Ser | |||||||
M, 5.375%, 12/31/49(B)(C) | 6,854,732 | |||||||
3,500,000 | ING Groep N.V., 6.000%, 12/31/49(B)(C) | 3,434,375 | ||||||
6,766,000 | JPMorgan Chase & Co., Ser Z, | |||||||
5.300%(B)(C) | 6,647,595 | |||||||
2,750,000 | M&T Bank Corp., Ser E, | |||||||
6.450%, 12/29/49(B)(C) | 2,915,000 | |||||||
5,430,000 | MetLife, Inc., Ser C, 5.250%(B)(C) | 5,375,700 | ||||||
2,850,000 | MGIC Investment Corp., 144a, | |||||||
9.000%, 4/1/63 | 3,525,094 | |||||||
3,644,000 | Morgan Stanley, Ser J, | |||||||
5.550%, 12/29/49(B)(C) | 3,589,340 | |||||||
2,350,000 | Nippon Life Insurance Co., 144a, | |||||||
5.100%, 10/16/44(B) | 2,420,500 | |||||||
4,495,000 | PNC Financial Services Group, Inc., | |||||||
6.750%, 7/29/49(B)(C) | 4,877,075 | |||||||
2,350,000 | Prudential Financial, Inc., | |||||||
5.875%, 9/15/42(B) | 2,485,125 | |||||||
3,650,000 | Royal Bank of Scotland Group PLC, | |||||||
7.500%, 12/29/49(B)(C) | 3,642,006 | |||||||
2,650,000 | SunTrust Banks, Inc., | |||||||
5.625%, 12/29/49(B)(C)† | 2,650,000 | |||||||
4,625,000 | Wells Fargo & Co., Ser K, | |||||||
7.980%, 3/29/49(B)(C) | 4,885,156 | |||||||
1,930,000 | Westpac Banking Corp. EMTN, | |||||||
3.625%, 2/28/23(B) | 1,981,689 | |||||||
2,312,000 | Zions Bancorporation, | |||||||
5.800%, 12/29/49(B)(C) | 2,207,960 | |||||||
105,621,724 | ||||||||
Industrials — 4.9% | ||||||||
622,067 | Air Canada 2013-1 Class A Pass | |||||||
Through Trust, 144a, | ||||||||
4.125%, 5/15/25 | 627,510 | |||||||
2,745,000 | Asciano Finance Ltd., 144a, | |||||||
5.000%, 4/7/18 | 2,910,164 | |||||||
2,834,717 | Continental Airlines 2012-2 Class A | |||||||
Pass Through Trust, | ||||||||
4.000%, 10/29/24 | 2,884,324 | |||||||
931,155 | Delta Air Lines 2002-1 Class G-1 Pass | |||||||
Through Trust, 6.718%, 1/2/23 | 1,059,188 | |||||||
1,793,363 | Hawaiian Airlines 2013-1 Class A Pass | |||||||
Through Certificates, | ||||||||
3.900%, 1/15/26 | 1,766,462 | |||||||
1,285,000 | Owens Corning, 4.200%, 12/15/22 | 1,301,871 | ||||||
4,195,000 | Stanley Black & Decker, Inc., | |||||||
5.750%, 12/15/53(B) | 4,432,018 | |||||||
2,718,055 | US Airways 2012-2 Class A Pass | |||||||
Through Trust, 4.625%, 6/3/25 | 2,808,566 | |||||||
17,790,103 | ||||||||
Consumer Discretionary — 2.4% | ||||||||
1,500,000 | DIRECTV Holdings LLC, | |||||||
5.200%, 3/15/20 | 1,638,549 | |||||||
1,835,000 | Harley-Davidson, Inc., 3.500%, 7/28/25 | 1,855,914 | ||||||
1,600,000 | Home Depot, Inc. (The), | |||||||
4.200%, 4/1/43 | 1,615,811 | |||||||
3,535,000 | Toll Brothers Finance Corp., | |||||||
4.375%, 4/15/23 | 3,473,138 | |||||||
250,000 | United States Cellular Corp., | |||||||
6.700%, 12/15/33 | 220,625 | |||||||
8,804,037 | ||||||||
Energy — 2.0% | ||||||||
1,590,000 | Duke Energy Progress LLC, | |||||||
4.200%, 8/15/45 | 1,608,671 | |||||||
4,825,000 | Exxon Mobil Corp., 2.709%, 3/6/25 | 4,722,975 | ||||||
1,000,000 | Petroleos Mexicanos, 5.500%, 1/21/21 | 1,051,450 | ||||||
7,383,096 | ||||||||
Utilities — 0.8% | ||||||||
1,850,000 | NextEra Energy Capital Holdings, Inc., | |||||||
6.650%, 6/15/67(B) | 1,546,378 |
6 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount(A) | Value | |||||||
Corporate Bonds — 40.0% (Continued) | ||||||||
Utilities — (Continued) | ||||||||
$ | 875,000 | SSE PLC EMTN (GBP), | ||||||
5.453%, 9/29/49(B)(C) | $ | 1,322,672 | ||||||
2,869,050 | ||||||||
Technology — 0.7% | ||||||||
2,725,000 | NXP BV, 144a, 4.125%, 6/15/20 | 2,731,812 | ||||||
Telecommunication Services — 0.4% | ||||||||
1,388,000 | Verizon Communications, Inc., | |||||||
4.672%, 3/15/55 | 1,195,207 | |||||||
144,000 | Verizon Communications, Inc., | |||||||
6.550%, 9/15/43 | 170,128 | |||||||
1,365,335 | ||||||||
Total Corporate Bonds | $ | 146,565,157 | ||||||
U.S. Treasury Obligations — 12.4% | ||||||||
3,750,000 | U.S. Treasury Bond, 2.125%, 5/15/25 | 3,772,560 | ||||||
6,695,000 | U.S. Treasury Bond, 3.000%, 11/15/44 | 6,836,747 | ||||||
2,565,000 | U.S. Treasury Note, 1.000%, 9/15/17 | 2,583,068 | ||||||
5,105,000 | U.S. Treasury Note, 1.625%, 6/30/19 | 5,195,200 | ||||||
7,260,000 | U.S. Treasury Note, 1.750%, 5/15/23 | 7,198,174 | ||||||
2,075,000 | U.S. Treasury Note, 1.875%, 11/30/21 | 2,101,857 | ||||||
2,330,000 | U.S. Treasury Note, 2.250%, 3/31/21 | 2,419,013 | ||||||
13,002,900 | U.S. Treasury Note, 2.250%, 11/15/24 | 13,246,028 | ||||||
2,178,400 | U.S. Treasury Note, 2.375%, 8/15/24 | 2,243,639 | ||||||
Total U.S. Treasury Obligations | $ | 45,596,286 | ||||||
Commercial Mortgage-Backed Securities — 6.3% | ||||||||
1,540,000 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
�� | 2005-6, Class AJ, 5.315%, 9/10/47(B) | 1,544,748 | ||||||
285,475 | Bear Stearns Commercial Mortgage | |||||||
Securities Trust, Ser 2005-PWR9, | ||||||||
Class AJ, 4.985%, 9/11/42(B) | 285,820 | |||||||
1,450,000 | CD 2005-CD1 Commercial Mortgage | |||||||
Trust, Ser 2005-CD1, Class C, | ||||||||
5.289%, 7/15/44(B) | 1,448,667 | |||||||
35,188,576 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K006, Class | ||||||||
AX1, 1.178%, 1/25/20(B)(D) | 1,281,568 | |||||||
15,766,302 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K019, Class | ||||||||
X1, 1.863%, 3/25/22(B)(D) | 1,425,494 | |||||||
27,523,914 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K025, Class | ||||||||
X1, 1.020%, 10/25/22(B)(D) | 1,406,665 | |||||||
74,035,977 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K033, Class | ||||||||
X1, 0.430%, 7/25/23(B) | 1,600,954 | |||||||
2,700,000 | FREMF Mortgage Trust, Ser 2012-K23, | |||||||
Class C, 144a, 3.782%, 10/25/45(B) | 2,658,687 | |||||||
2,300,000 | FREMF Mortgage Trust, Ser 2013-K712, | |||||||
Class C, 144a, 3.484%, 12/25/19(B) | 2,302,231 | |||||||
1,900,000 | FREMF Mortgage Trust, Ser 2013-K713, | |||||||
Class C, 144a, 3.274%, 4/25/20(B) | 1,892,947 | |||||||
357,732 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Trust, Ser | ||||||||
2005-LDP3, Class C, | ||||||||
5.416%, 8/15/42(B) | 357,374 | |||||||
612,090 | Morgan Stanley Mortgage Loan Trust, | |||||||
Ser 2004-7AR, Class 2A6, | ||||||||
2.463%, 9/25/34(B) | 611,690 | |||||||
506,882 | Mortgage Pass Through Certificates, | |||||||
Ser 2001-CIB2, Class D, | ||||||||
6.847%, 4/15/35(B) | 506,442 | |||||||
610,124 | Nomura Asset Acceptance Corp. | |||||||
Alternative Loan Trust, Ser | ||||||||
2005-AR4, Class 1A, | ||||||||
6.832%, 8/25/35(B) | 608,254 | |||||||
2,335,000 | RAMP Series Trust, Ser 2005-EFC5, | |||||||
Class M3, 0.654%, 10/25/35(B) | 1,986,814 | |||||||
842,178 | Structured Asset Securities Corp. | |||||||
Mortgage Loan Trust, Ser 2005-S3, | ||||||||
Class M3, 5.730%, 6/25/35(E) | 857,492 | |||||||
2,375,000 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2006-C23, Class AM, | ||||||||
5.466%, 1/15/45(B) | 2,388,832 | |||||||
Total Commercial Mortgage-Backed Securities | $ | 23,164,679 | ||||||
Asset-Backed Securities — 4.8% | ||||||||
1,511,995 | American Homes 4 Rent, Ser | |||||||
2014-SFR2, Class A, 144a, | ||||||||
3.786%, 10/17/36 | 1,574,950 | |||||||
3,135,000 | Cabela's Credit Card Master Note | |||||||
Trust, Ser 2013-1A, Class A, 144a, | ||||||||
2.710%, 2/17/26 | 3,156,437 | |||||||
3,930,000 | Capital Auto Receivables Asset Trust / | |||||||
Ally, Ser 2013-1, Class D, | ||||||||
2.190%, 9/20/21 | 3,946,871 | |||||||
400,000 | Chrysler Capital Auto Receivables | |||||||
Trust, Ser 2013-AA, Class C, 144a, | ||||||||
2.280%, 7/15/19 | 403,410 | |||||||
395,000 | CNH Equipment Trust, Ser 2013-D, | |||||||
Class B, 1.750%, 4/15/21 | 398,622 | |||||||
819,183 | Conseco Financial Corp., Ser 1998-4, | |||||||
Class A7, 6.870%, 4/1/30(B) | 888,934 | |||||||
117,362 | Countrywide Asset-Backed | |||||||
Certificates, Ser 2007-1, Class 2A2, | ||||||||
0.294%, 7/25/37(B) | 121,296 | |||||||
1,035,944 | CWABS, Inc. Asset-Backed Certificates, | |||||||
Ser 2003-5, Class MF1, | ||||||||
5.413%, 1/25/34(B) | 1,049,131 | |||||||
2,469,169 | Encore Credit Receivables Trust | |||||||
2005-4, Ser 2005-4, Class M2, | ||||||||
0.634%, 1/25/36(B) | 2,283,223 |
7 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount(A) | Value | |||||||
Asset-Backed Securities — 4.8% (Continued) | ||||||||
$ | 1,300,000 | Ford Credit Auto Owner Trust, Ser | ||||||
2013-A, Class D, 1.860%, 8/15/19 | $ | 1,309,212 | ||||||
754,104 | Mid-State Capital Corp. Trust, Ser | |||||||
2005-1, Class M2, 7.079%, 1/15/40 | 830,419 | |||||||
1,230,000 | Oscar US Funding Trust, Ser 2014-1A, | |||||||
Class A4, 144a, 2.550%, 12/15/21 | 1,258,594 | |||||||
336,499 | RAMP Trust, Ser 2003-RZ5, Class A7, | |||||||
5.470%, 9/25/33(E) | 346,369 | |||||||
Total Asset-Backed Securities | $ | 17,567,468 | ||||||
Municipal Bonds — 3.6% | ||||||||
2,445,000 | City of Charleston, SC Waterworks & | |||||||
Sewer System Rev, 5.000%, 1/1/45 | 2,805,026 | |||||||
3,285,000 | City of New York, NY, Public | |||||||
Improvements, Txbl, Subser F 3, | ||||||||
UTGO, 4.000%, 6/1/26 | 3,464,558 | |||||||
2,900,000 | MA State, Ref, Ser A, LTGO, 5.000%, | |||||||
7/1/26 | 3,622,419 | |||||||
2,605,000 | TX State, Transportation Commission, | |||||||
Highway Improvements, Ref, Ser A, | ||||||||
UTGO, 5.000%, 10/1/26 | 3,168,488 | |||||||
Total Municipal Bonds | 13,060,491 | |||||||
Non-Agency Collateralized Mortgage Obligations — 1.8% | ||||||||
1,989,452 | American Home Mortgage | |||||||
Investment Trust 2004-4, Ser | ||||||||
2004-4, Class 4A, 2.534%, 2/25/45(B) | 1,986,016 | |||||||
163,686 | Bear Stearns Asset Backed Securities | |||||||
Trust, Ser 2003-AC7, Class A2, | ||||||||
5.750%, 1/25/34(E) | 170,718 | |||||||
352,459 | Countrywide Alternative Loan Trust, | |||||||
Ser 2004-30CB, Class 3A1, | ||||||||
5.000%, 2/25/20 | 362,162 | |||||||
2,487,616 | GSR Mortgage Loan Trust, Ser | |||||||
2005-AR4, Class 6A1, | ||||||||
2.885%, 7/25/35(B) | 2,456,934 | |||||||
1,074,883 | JP Morgan Mortgage Trust, Ser | |||||||
2014-2, Class 1A1, 144a, | ||||||||
3.000%, 6/25/29(B) | 1,097,808 | |||||||
7,937 | Merrill Lynch Mortgage Investors, Inc., | |||||||
Ser 2003-A1, Class 2A, | ||||||||
2.468%, 12/25/32(B) | 7,875 | |||||||
225,571 | RALI Trust, Ser 2004-QS6, Class A1, | |||||||
5.000%, 5/25/19 | 228,262 | |||||||
297,095 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2004-X, Class | ||||||||
1A5, 2.676%, 11/25/34(B) | 301,579 | |||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 6,611,354 | ||||||
U.S. Government Mortgage-Backed Obligations — 1.6% | ||||||||
46,399 | FHLMC, Pool #972110, | |||||||
2.448%, 10/1/32(B) | 48,162 | |||||||
76,850 | FHLMC, Pool #G03170, 6.500%, 8/1/37 | 87,856 | ||||||
122,910 | FHLMC, Pool #G12780, 6.500%, 9/1/22 | 138,247 | ||||||
2,950,000 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K048, Class | ||||||||
A2, 3.284%, 6/25/25(B) | 3,086,163 | |||||||
15,420 | FNMA, Pool #738900, | |||||||
2.560%, 7/1/18(B) | 15,546 | |||||||
141,418 | FNMA, Pool #844415, 5.500%, 10/1/35 | 159,063 | ||||||
881,478 | FNMA, Pool #AB1952, 4.000%, 12/1/40 | 953,639 | ||||||
639,179 | FNMA, Pool #AB1953, 4.000%, 12/1/40 | 689,182 | ||||||
614,992 | FNMA, Pool #AB3387, 4.000%, 8/1/41 | 656,432 | ||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 5,834,290 | ||||||
Agency Collateralized Mortgage Obligations — 1.2% | ||||||||
1,928,377 | FHLMC REMIC, Ser 3199, Class DS, | |||||||
6.943%, 8/15/36(B)(D) | 397,238 | |||||||
2,250,770 | FNMA REMIC, Ser 2008-60, Class SA, | |||||||
6.306%, 7/25/38(B)(D) | 358,621 | |||||||
3,567,468 | GNMA, Ser 2011-83, Class NI, | |||||||
4.500%, 10/16/37 | 239,810 | |||||||
19,768,723 | GNMA, Ser 2012-22, Class IO, | |||||||
1.209%, 10/16/53(B)(D) | 995,573 | |||||||
21,150,367 | GNMA, Ser 2012-27, Class IO, | |||||||
1.223%, 4/16/53(B)(D) | 1,252,927 | |||||||
12,642,497 | GNMA, Ser 2012-46, Class IO, | |||||||
0.981%, 9/16/53(B)(D) | 564,083 | |||||||
7,684,086 | GNMA, Ser 2012-86, Class IO, | |||||||
1.045%, 12/16/53(B)(D) | 451,770 | |||||||
Total Agency Collateralized Mortgage Obligations | $ | 4,260,022 | ||||||
Sovereign Government Obligation — 0.5% | ||||||||
1,795,000 | Svensk Exportkredit AB, | |||||||
1.750%, 5/30/17 | 1,821,467 | |||||||
Shares | ||||||||
Preferred Stocks — 17.1% | ||||||||
Financials — 10.0% | ||||||||
39,050 | Alexandria Real Estate Equities, Inc., | |||||||
Ser E REIT, 6.45% | 983,279 | |||||||
89,200 | American Capital Agency Corp., Ser B | |||||||
REIT, 7.75% | 2,171,128 | |||||||
91,756 | Arch Capital Group Ltd., Ser C | |||||||
(Bermuda), 6.75% | 2,366,387 | |||||||
141,150 | Aviva PLC, (United Kingdom), 8.25% | 3,764,470 | ||||||
90,034 | Citigroup, Inc., Ser K, 6.88%(B)† | 2,401,207 | ||||||
49,750 | CoBank ACB, Ser H, 6.20%(B) | 4,975,000 | ||||||
31,600 | Digital Realty Trust, Inc., Ser E REIT, | |||||||
7.00% | 806,116 | |||||||
86,000 | Digital Realty Trust, Inc., Ser H REIT, | |||||||
7.38% | 2,295,340 | |||||||
142,555 | Endurance Specialty Holdings Ltd., Ser | |||||||
B (Bermuda), 7.50% | 3,675,068 | |||||||
96,000 | Morgan Stanley, Ser F, 6.88%(B)† | 2,566,080 |
8 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Preferred Stocks — 17.1% (Continued) | ||||||||
Financials — (Continued) | ||||||||
46,000 | PS Business Parks, Inc., Ser S REIT, | |||||||
6.45% | $ | 1,167,020 | ||||||
27,262 | Public Storage, Ser P REIT, 6.50% | 682,640 | ||||||
30,000 | Public Storage, Ser R REIT, 6.35% | 768,900 | ||||||
67,000 | Public Storage, Ser Y REIT, 6.38% | 1,746,020 | ||||||
53,400 | Realty Income Corp., Ser F REIT, 6.63% | 1,373,982 | ||||||
66,575 | US Bancorp, Ser F, 6.50%(B) | 1,912,034 | ||||||
54,425 | US Bancorp, Ser G, 6.00%(B) | 1,433,010 | ||||||
41,000 | Vornado Realty Trust, Ser J REIT, 6.88% | 1,047,550 | ||||||
14,000 | Weyerhaeuser Co., Ser A REIT, 6.38% | 667,940 | ||||||
36,803,171 | ||||||||
Utilities — 3.5% | ||||||||
35,000 | Alabama Power Co., 6.45% | 915,250 | ||||||
44,000 | Dominion Resources, Inc., 6.38% | 2,182,840 | ||||||
68,000 | DTE Energy Co., 6.50% | 1,757,800 | ||||||
88,500 | Entergy Louisiana LLC, 5.88% | 2,226,660 | ||||||
92,000 | Entergy Mississippi, Inc., 6.00% | 2,358,880 | ||||||
14,985 | Georgia Power Co., Ser 07-A, 6.50% | 1,542,706 | ||||||
76,244 | SCE Trust IV, 5.38%(B) | 1,963,283 | ||||||
12,947,419 | ||||||||
Chemicals — 1.5% | ||||||||
91,175 | CHS, Inc., Series 2, 7.10%(B) | 2,421,608 | ||||||
119,813 | CHS, Inc., Series 3, 6.75%(B)† | 3,104,355 | ||||||
5,525,963 | ||||||||
Industrials — 1.4% | ||||||||
166,600 | Seaspan Corp., (Marshall Islands), | |||||||
8.25% | 4,226,642 | |||||||
36,854 | Seaspan Corp., (Marshall Islands), | |||||||
6.38% | 912,505 | |||||||
5,139,147 | ||||||||
Consumer Discretionary — 0.7% | ||||||||
93,242 | Telephone & Data Systems, Inc., 6.88% | 2,346,901 | ||||||
Total Preferred Stocks | $ | 62,762,601 | ||||||
Common Stocks — 3.9% | ||||||||
Financials — 2.1% | ||||||||
52,859 | American Capital Agency Corp. REIT | 988,463 | ||||||
31,702 | Chatham Lodging Trust REIT | 680,959 | ||||||
51,357 | Hospitality Properties Trust REIT | 1,313,712 | ||||||
35,957 | Kimco Realty Corp. REIT | 878,430 | ||||||
4,730 | Simon Property Group, Inc. REIT | 868,996 | ||||||
87,330 | Starwood Property Trust, Inc. REIT | 1,792,012 | ||||||
121,407 | Two Harbors Investment Corp. REIT | 1,070,810 | ||||||
7,593,382 | ||||||||
Consumer Discretionary — 0.5% | ||||||||
16,719 | Newell Rubbermaid, Inc. | 663,911 | ||||||
10,911 | Starbucks Corp. | 620,181 | ||||||
8,397 | Target Corp. | 660,508 | ||||||
1,944,600 | ||||||||
Industrials — 0.5% | ||||||||
5,978 | Cintas Corp. | 512,615 | ||||||
6,075 | Lennox International, Inc. | 688,480 | ||||||
4,416 | Watsco, Inc. | 523,208 | ||||||
1,724,303 | ||||||||
Residential — 0.3% | ||||||||
12,472 | Camden Property Trust REIT | 921,681 | ||||||
Consumer Staples — 0.2% | ||||||||
19,130 | Reynolds American, Inc. | 846,896 | ||||||
Diversified — 0.2% | ||||||||
44,072 | Duke Realty Corp. REIT | 839,572 | ||||||
Information Technology — 0.1% | ||||||||
4,105 | Apple, Inc. | 452,783 | ||||||
Total Common Stocks | $ | 14,323,217 | ||||||
Exchange Traded Funds — 0.7% | ||||||||
82,367 | iShares MSCI Germany ETF | 2,037,760 | ||||||
40,128 | Market Vectors Gold Miners ETF | 551,359 | ||||||
Total Exchange Traded Funds | $ | 2,589,119 |
Number | ||||||||||||
of | ||||||||||||
Contracts | ||||||||||||
Purchased Call Option — 0.1% | ||||||||||||
VIX, Strike @15.00, Exp 12/15 | 560 | 386,400 | ||||||||||
Total Purchased Option | $ | 386,400 |
Investment Funds — 4.9% | ||||||||
9,363,566 | Dreyfus Cash Management, | |||||||
Institutional Shares, 0.06%∞Ω | 9,363,566 | |||||||
23,600 | Eaton Vance Tax-Advantaged | |||||||
Dividend Income Fund± | 433,768 | |||||||
4,609,788 | Invesco Government & Agency | |||||||
Portfolio, Institutional Class, | ||||||||
0.04%**∞Ω | 4,609,788 | |||||||
135,400 | Nuveen Multi-Market Income Fund, | |||||||
Inc.± | 941,030 | |||||||
56,104 | WisdomTree Japan Hedged Equity | |||||||
Fund∞ | 2,730,021 | |||||||
Total Investment Funds | $ | 18,078,173 | ||||||
Total Investment Securities —98.9% | ||||||||
(Cost $365,861,789) | $ | 362,620,724 | ||||||
Other Assets in Excess of Liabilities — 1.1% | 4,158,146 | |||||||
Net Assets — 100.0% | $ | 366,778,870 |
9 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
(A) | Principal amount stated in U.S. dollars unless otherwise noted. |
(B) | Variable rate security - Rate reflected is the rate in effect as of September 30, 2015. |
(C) | Perpetual Bond - A Bond with no definite maturity date. |
(D) | Interest only security. This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
(E) | Step Bond - A bond that pays an initial interest rate for the first period and then a higher interest rate for the following periods until maturity. The interest rate shown reflects the rate in effect as of September 30, 2015. |
** | Represents collateral for securities loaned. |
± | Closed-End Fund. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $4,478,299. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
BRL - Brazilian Real
CLF - Chilean Unidad de Fomento
COP - Colombian Peso
EMTN - Euro medium term note
ETF - Exchange Traded Fund
EUR - Euro
FHLMC - Federal Home Loan Mortgage Association
FNMA - Federal National Mortgage Association
FREMF - Finnish Real Estate Management Federation
GBP - British Pound
GNMA - Government National Mortgage Association
IDR - Indonesian Rupiah
INR - Indian Rupee
JPY - Japanese Yen
KRW - South Korean Won
LLC - Limited Liability Company
LP - Limited Partnership
LTGO - Limited Tax General Obligations
MTN - Medium Term Note
MYR - Malaysian Ringgit
PHP - Philippine Peso
PLC - Public Limited Company
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
USD - United States Dollar
UTGO - Unlimited Tax General Obligation
ZAR - South African Rand
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2015, these securities were valued at $31,803,901 or 8.7% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
10 |
Touchstone Flexible Income Fund (Unaudited) (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 | ||||||||||||
Assets: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 146,565,157 | $ | — | $ | 146,565,157 | ||||||||
U.S. Treasury Obligations | — | 45,596,286 | — | 45,596,286 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 23,164,679 | — | 23,164,679 | ||||||||||||
Asset-Backed Securities | — | 17,567,468 | — | 17,567,468 | ||||||||||||
Municipal Bonds | — | 13,060,491 | — | 13,060,491 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 6,611,354 | — | 6,611,354 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 5,834,290 | — | 5,834,290 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 4,260,022 | — | 4,260,022 | ||||||||||||
Sovereign Government Obligation | — | 1,821,467 | — | 1,821,467 | ||||||||||||
Preferred Stocks | 62,762,601 | — | — | 62,762,601 | ||||||||||||
Common Stocks | 14,323,217 | — | — | 14,323,217 | ||||||||||||
Exchange Traded Funds | 2,589,119 | — | — | 2,589,119 | ||||||||||||
Purchased Option Equity Contracts | 386,400 | — | — | 386,400 | ||||||||||||
Investment Funds | 18,078,173 | — | — | 18,078,173 | ||||||||||||
$ | 362,620,724 |
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Other Financial Instruments*** | ||||||||||||||||
Assets: | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 1,494,514 | $ | — | $ | 1,494,514 | ||||||||
Future Interest Rate Contracts | 1,430,130 | — | — | 1,430,130 | ||||||||||||
Swap Agreement Credit Contracts | — | 22,487 | — | 22,487 | ||||||||||||
2,947,131 | ||||||||||||||||
Liabilities: | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | (269,737 | ) | $ | — | $ | (269,737 | ) | ||||||
Futures Interest Rate Contracts | (1,058,240 | ) | — | — | (1,058,240 | ) | ||||||||||
$ | (1,327,977 | ) |
*** Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized appreciation (depreciation) on forward currency contracts, futures contracts and swap agreements.
Transactions in written options for the period ended September 30, 2015.
Number of | Proceeds | |||||||
Contracts | Received | |||||||
Beginning of Period, March 31, 2015 | — | $ | — | |||||
Call Options Written | 2,750 | 87,787 | ||||||
Call Options Closed | (550 | ) | (35,176 | ) | ||||
Call Options Expired | (2,200 | ) | (52,611 | ) | ||||
September 30, 2015 | — | $ | — |
11 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Futures Contracts
At September 30, 2015, $602,072 was segregated with the broker as collateral for futures contracts. The Fund had the following futures contracts, brokered by Morgan Stanley open at September 30, 2015:
Unrealized | ||||||||||||||
Expiration | Number of | Notional | Appreciation/ | |||||||||||
Description | Date | Contracts | Value | (Depreciation) | ||||||||||
Short Futures: | ||||||||||||||
3 Month Euribor Futures | December 2017 | 480 | 133,947,927 | $ | (37,355 | ) | ||||||||
90 Day Euro Futures | December 2017 | 300 | 73,837,500 | (1,020,885 | ) | |||||||||
(1,058,240 | ) | |||||||||||||
Long Futures: | ||||||||||||||
90 Day Euro Futures | December 2017 | 832 | 205,275,650 | 1,430,130 | ||||||||||
$ | 371,890 |
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||
Contract to | Appreciation/ | |||||||||||||
Counterparty | Expiration Date | Receive | Deliver | (Depreciation) | ||||||||||
ANZ Capital Markets | 10/05/2015 | KRW | 3,805,607,230 | USD | 3,210,128 | $ | (68 | ) | ||||||
ANZ Capital Markets | 10/09/2015 | INR | 224,609,439 | USD | 3,365,188 | 50,874 | ||||||||
ANZ Capital Markets | 10/09/2015 | USD | 3,232,803 | IDR | 46,526,495,229 | 68,273 | ||||||||
ANZ Capital Markets | 10/15/2015 | PHP | 83,749,846 | USD | 1,788,571 | 1,386 | ||||||||
ANZ Capital Markets | 10/15/2015 | USD | 3,581,305 | COP | 10,754,657,957 | 104,551 | ||||||||
ANZ Capital Markets | 10/15/2015 | USD | 3,127,201 | IDR | 46,526,495,229 | (29,813 | ) | |||||||
ANZ Capital Markets | 11/02/2015 | USD | 3,206,153 | KRW | 3,805,607,230 | (581 | ) | |||||||
BNY Convergex | 10/02/2015 | USD | 6,355,807 | ZAR | 83,851,253 | 307,422 | ||||||||
BNY Convergex | 10/02/2015 | USD | 3,042,239 | ZAR | 41,925,626 | 18,047 | ||||||||
BNY Convergex | 10/02/2015 | ZAR | 83,851,253 | USD | 5,999,346 | 49,038 | ||||||||
BNY Convergex | 10/15/2015 | USD | 5,985,752 | ZAR | 83,851,253 | (48,731 | ) | |||||||
Morgan Stanley | 10/02/2015 | ZAR | 41,925,626 | USD | 3,144,708 | (120,516 | ) | |||||||
Morgan Stanley | 10/05/2015 | JPY | 410,631,000 | USD | 3,433,637 | (10,503 | ) | |||||||
Morgan Stanley | 10/05/2015 | USD | 3,397,609 | JPY | 410,631,000 | (25,525 | ) | |||||||
Morgan Stanley | 10/05/2015 | USD | 3,208,910 | KRW | 3,805,607,230 | (1,150 | ) | |||||||
Morgan Stanley | 10/07/2015 | EUR | 3,091,384 | USD | 3,468,145 | (13,451 | ) | |||||||
Morgan Stanley | 10/07/2015 | USD | 3,534,814 | EUR | 3,091,384 | 80,120 | ||||||||
Morgan Stanley | 10/08/2015 | BRL | 15,667,229 | USD | 3,744,110 | 196,532 | ||||||||
Morgan Stanley | 10/08/2015 | USD | 8,499,555 | BRL | 31,334,458 | 618,271 | ||||||||
Morgan Stanley | 10/15/2015 | USD | 1,790,947 | MYR | 7,893,599 | (2,859 | ) | |||||||
Morgan Stanley | 10/26/2015 | USD | 1,791,923 | CLF | 1,261,872,266 | (16,540 | ) | |||||||
$ | 1,224,777 |
12 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Credit Default Swaps on Credit Indices - Buy Protection(1)
Pay | Upfront | |||||||||||||||||||||||
Termination | Notional | Fixed | Asset Backed/ | Premium | Unrealized | |||||||||||||||||||
Counterparty | Date | Amount(2) | Rate | Credit Indices | Value(3) | (Received) | Appreciation | |||||||||||||||||
Wells Fargo | 06/20/2020 | $ | 10,000,000 | 1.000 | % | Markit CDX.NA.IG.24 | $ | (53,456 | ) | $ | (75,943 | ) | $ | 22,487 |
(1) | If the Fund is the buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying investments comprising the referenced index or (ii) receive a net settlement amount in the form of cash or investments equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying investments comprising the referenced index. |
(2) | The maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of protection if a credit event occurs as defined under the terms of that particular swap agreement. |
(3) | The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Decreasing market values (sell protection) or increasing market values (buy protection) when compared to the notional amount of the swap, represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
See accompanying Notes to Financial Statements.
13 |
Touchstone Focused Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 93.4% | ||||||||
Information Technology — 20.5% | ||||||||
Altera Corp. | 126,280 | $ | 6,324,102 | |||||
Apple, Inc. | 355,854 | 39,250,696 | ||||||
Avnet, Inc. | 556,878 | 23,767,553 | ||||||
Cisco Systems, Inc. | 1,194,262 | 31,349,378 | ||||||
Google, Inc. - Class A* | 37,636 | 24,025,693 | ||||||
Google, Inc. - Class C* | 38,748 | 23,575,058 | ||||||
International Business Machines Corp. | 95,052 | 13,779,688 | ||||||
Microsoft Corp. | 623,205 | 27,583,053 | ||||||
Oracle Corp. | 805,204 | 29,083,968 | ||||||
Xilinx, Inc. | 188,541 | 7,994,138 | ||||||
226,733,327 | ||||||||
Health Care — 15.5% | ||||||||
Abbott Laboratories | 974,159 | 39,180,675 | ||||||
Biogen, Inc.* | 45,500 | 13,277,355 | ||||||
Bio-Rad Laboratories, Inc. - Class A* | 198,950 | 26,720,974 | ||||||
Johnson & Johnson | 237,989 | 22,216,273 | ||||||
Novartis AG ADR | 394,798 | 36,289,833 | ||||||
Owens & Minor, Inc. | 1,034,548 | 33,043,463 | ||||||
170,728,573 | ||||||||
Financials — 15.2% | ||||||||
Bank of America Corp. | 1,871,630 | 29,159,995 | ||||||
Bank of New York Mellon Corp. (The) | 1,621,604 | 63,485,797 | ||||||
Berkshire Hathaway, Inc. - Class B* | 307,145 | 40,051,708 | ||||||
Goldman Sachs Group, Inc. (The) | 204,114 | 35,466,849 | ||||||
168,164,349 | ||||||||
Consumer Discretionary — 11.1% | ||||||||
Amazon.com, Inc.* | 68,220 | 34,921,136 | ||||||
Carnival Corp. (Panama) | 536,348 | 26,656,496 | ||||||
Priceline Group, Inc. (The)* | 15,803 | 19,546,099 | ||||||
Royal Caribbean Cruises Ltd. (Liberia) | 128,880 | 11,481,919 | ||||||
Twenty-First Century Fox, Inc. - Class A | 618,734 | 16,693,443 | ||||||
Vista Outdoor, Inc.* | 296,648 | 13,180,071 | ||||||
122,479,164 | ||||||||
Consumer Staples — 10.8% | ||||||||
JM Smucker Co. (The) | 229,435 | 26,176,239 | ||||||
Mondelez International, Inc. - Class A | 1,343,795 | 56,264,697 | ||||||
Sysco Corp. | 951,001 | 37,060,509 | ||||||
119,501,445 | ||||||||
Industrials — 9.8% | ||||||||
AGCO Corp. | 511,558 | 23,853,950 | ||||||
General Electric Co. | 1,476,664 | 37,241,466 | ||||||
II-VI, Inc.* | 753,371 | 12,114,206 | ||||||
Kennametal, Inc. | 726,860 | 18,091,545 | ||||||
WESCO International, Inc.*† | 369,878 | 17,188,231 | ||||||
108,489,398 | ||||||||
Energy — 6.2% | ||||||||
Halliburton Co. | 516,074 | 18,243,216 | ||||||
National Oilwell Varco, Inc. | 336,343 | 12,663,314 | ||||||
Schlumberger Ltd. (Curacao) | 261,635 | 18,044,966 | ||||||
World Fuel Services Corp. | 536,913 | 19,221,485 | ||||||
68,172,981 | ||||||||
Materials — 4.3% | ||||||||
Agrium, Inc. (Canada)† | 281,844 | 25,225,038 | ||||||
Reliance Steel & Aluminum Co. | 407,771 | 22,023,712 | ||||||
47,248,750 | ||||||||
Total Common Stocks | $ | 1,031,517,987 | ||||||
Investment Funds — 9.4% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 71,716,642 | 71,716,642 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.04%**∞Ω | 32,113,620 | 32,113,620 | ||||||
Total Investment Funds | $ | 103,830,262 | ||||||
Total Investment Securities —102.8% | ||||||||
(Cost $1,046,528,173) | $ | 1,135,348,249 | ||||||
Liabilities in Excess of Other Assets — (2.8%) | (30,844,630 | ) | ||||||
Net Assets — 100.0% | $ | 1,104,503,619 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $31,829,472. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
14 |
Touchstone Focused Fund (Unaudited) (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 | $ | 1,031,517,987 | $ | — | $ | — | $ | 1,031,517,987 | ||||||||
Investment Funds | 103,830,262 | — | — | 103,830,262 | ||||||||||||
$ | 1,135,348,249 |
See accompanying Notes to Financial Statements.
15 |
Touchstone Growth Opportunities Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.1% | ||||||||
Information Technology — 29.8% | ||||||||
Alliance Data Systems Corp.* | 17,055 | $ | 4,416,903 | |||||
Analog Devices, Inc. | 70,310 | 3,966,187 | ||||||
Apple, Inc. | 139,287 | 15,363,356 | ||||||
Facebook, Inc. - Class A* | 86,700 | 7,794,330 | ||||||
Google, Inc. - Class A* | 10,051 | 6,416,257 | ||||||
Google, Inc. - Class C* | 10,067 | 6,124,964 | ||||||
MasterCard, Inc. - Class A | 52,480 | 4,729,498 | ||||||
ON Semiconductor Corp.* | 405,880 | 3,815,272 | ||||||
Palo Alto Networks, Inc.* | 44,180 | 7,598,960 | ||||||
Red Hat, Inc.* | 59,380 | 4,268,234 | ||||||
Salesforce.com, Inc.* | 82,660 | 5,739,084 | ||||||
ServiceNow, Inc.* | 19,140 | 1,329,273 | ||||||
Splunk, Inc.* | 70,300 | 3,891,105 | ||||||
Visa, Inc. - Class A | 73,630 | 5,129,066 | ||||||
80,582,489 | ||||||||
Consumer Discretionary — 24.4% | ||||||||
Amazon.com, Inc.* | 12,934 | 6,620,785 | ||||||
Brunswick Corp. | 56,140 | 2,688,545 | ||||||
Comcast Corp. - Class A | 109,490 | 6,227,791 | ||||||
Delphi Automotive PLC (Jersey) | 71,960 | 5,471,838 | ||||||
Five Below, Inc.* | 77,660 | 2,607,823 | ||||||
Home Depot, Inc. (The) | 44,890 | 5,184,346 | ||||||
Jarden Corp.* | 121,724 | 5,949,869 | ||||||
Lowe's Cos., Inc. | 84,210 | 5,803,753 | ||||||
Priceline Group, Inc. (The)* | 5,056 | 6,253,564 | ||||||
Service Corp. International | 146,310 | 3,965,001 | ||||||
Signet Jewelers Ltd. (Bermuda) | 23,750 | 3,233,088 | ||||||
Starbucks Corp. | 47,810 | 2,717,520 | ||||||
VF Corp. | 80,760 | 5,508,640 | ||||||
Yum! Brands, Inc. | 44,660 | 3,570,567 | ||||||
65,803,130 | ||||||||
Health Care — 17.7% | ||||||||
ARIAD Pharmaceuticals, Inc.*† | 201,892 | 1,179,049 | ||||||
Celgene Corp.* | 80,500 | 8,707,685 | ||||||
Cooper Cos., Inc. (The) | 33,490 | 4,985,321 | ||||||
Jazz Pharmaceuticals PLC (Ireland)* | 43,828 | 5,820,797 | ||||||
Merrimack Pharmaceuticals, Inc.*† | 148,470 | 1,263,480 | ||||||
PTC Therapeutics, Inc.* | 57,960 | 1,547,532 | ||||||
STERIS Corp. | 90,490 | 5,879,135 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 177,640 | 10,029,554 | ||||||
United Therapeutics Corp.* | 33,845 | 4,441,818 | ||||||
Vertex Pharmaceuticals, Inc.* | 38,245 | 3,982,834 | ||||||
47,837,205 | ||||||||
Industrials — 6.6% | ||||||||
Caterpillar, Inc. | 17,530 | 1,145,761 | ||||||
ManpowerGroup, Inc. | 49,360 | 4,042,090 | ||||||
TransDigm Group, Inc.* | 19,355 | 4,111,196 | ||||||
Union Pacific Corp. | 66,410 | 5,871,308 | ||||||
United Continental Holdings, Inc.* | 48,420 | 2,568,681 | ||||||
17,739,036 | ||||||||
Energy — 5.1% | ||||||||
CONSOL Energy, Inc.† | 311,150 | 3,049,270 | ||||||
Tesoro Corp. | 68,160 | 6,627,878 | ||||||
Valero Energy Corp. | 69,610 | 4,183,561 | ||||||
13,860,709 | ||||||||
Financials — 4.6% | ||||||||
BankUnited, Inc. | 129,202 | 4,618,972 | ||||||
CBRE Group, Inc. - Class A* | 104,650 | 3,348,800 | ||||||
Starwood Property Trust, Inc. REIT | 216,350 | 4,439,502 | ||||||
12,407,274 | ||||||||
Materials — 4.0% | ||||||||
Dow Chemical Co. (The) | 89,990 | 3,815,576 | ||||||
Eastman Chemical Co. | 52,680 | 3,409,450 | ||||||
Vulcan Materials Co. | 39,560 | 3,528,752 | ||||||
10,753,778 | ||||||||
Consumer Staples — 3.9% | ||||||||
Coca-Cola Enterprises, Inc. | 135,130 | 6,533,536 | ||||||
Constellation Brands, Inc. - Class A | 32,470 | 4,065,569 | ||||||
10,599,105 | ||||||||
Total Common Stocks | $ | 259,582,726 | ||||||
Investment Funds — 3.5% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 5,042,093 | 5,042,093 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.04%**∞Ω | 4,275,388 | 4,275,388 | ||||||
Total Investment Funds | $ | 9,317,481 | ||||||
Total Investment Securities —99.6% | ||||||||
(Cost $251,379,493) | $ | 268,900,207 | ||||||
Other Assets in Excess of Liabilities — 0.4% | 1,127,483 | |||||||
Net Assets — 100.0% | $ | 270,027,690 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $4,367,993. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
16 |
Touchstone Growth Opportunities Fund (Unaudited) (Continued)
Portfolio Abbreviations:
ADR - American Depositary Receipt
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 | $ | 259,582,726 | $ | — | $ | — | $ | 259,582,726 | ||||||||
Investment Funds | 9,317,481 | — | — | 9,317,481 | ||||||||||||
$ | 268,900,207 |
See accompanying Notes to Financial Statements.
17 |
Touchstone International Value Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.3% | ||||||||
United Kingdom — 20.5% | ||||||||
Consumer Discretionary — 2.2% | ||||||||
Kingfisher PLC | 422,000 | $ | 2,292,398 | |||||
Consumer Staples — 6.6% | ||||||||
Dairy Crest Group PLC | 229,547 | 2,112,992 | ||||||
Imperial Tobacco Group PLC | 90,439 | 4,675,574 | ||||||
Financials — 1.2% | ||||||||
Barclays PLC | 327,563 | 1,212,238 | ||||||
Health Care — 2.5% | ||||||||
Glaxosmithkline PLC | 130,900 | 2,512,474 | ||||||
Industrials — 1.6% | ||||||||
Rolls-Royce Holdings PLC | 159,300 | 1,634,122 | ||||||
Materials — 3.8% | ||||||||
DS Smith PLC | 648,128 | 3,871,805 | ||||||
Utilities — 2.6% | ||||||||
National Grid PLC | 191,005 | 2,660,146 | ||||||
Total United Kingdom | 20,971,749 | |||||||
Netherlands — 12.5% | ||||||||
Financials — 6.5% | ||||||||
Aegon N.V. | 346,500 | 1,986,891 | ||||||
Delta Lloyd N.V. | 130,800 | 1,099,079 | ||||||
ING Groep NV | 250,643 | 3,542,882 | ||||||
Industrials — 6.0% | ||||||||
Airbus Group NV | 40,100 | 2,374,737 | ||||||
CNH Industrial N.V. | 229,600 | 1,496,625 | ||||||
CNH Industrial N.V.† | 57,300 | 373,596 | ||||||
Koninklijke Philips N.V. | 79,800 | 1,877,453 | ||||||
Total Netherlands | 12,751,263 | |||||||
Switzerland — 11.6% | ||||||||
Financials — 7.0% | ||||||||
Credit Suisse Group AG | 90,356 | 2,171,873 | ||||||
Helvetia Holding AG | 2,077 | 1,018,923 | ||||||
Swiss Life Holding AG | 8,700 | 1,940,667 | ||||||
Zurich Insurance Group AG | 8,062 | 1,979,272 | ||||||
Health Care — 1.8% | ||||||||
Novartis AG | 20,149 | 1,851,933 | ||||||
Industrials — 2.8% | ||||||||
ABB Ltd. | 66,672 | 1,179,663 | ||||||
ABB Ltd. ADR | 31,900 | 563,673 | ||||||
OC Oerlikon Corp. AG | 118,400 | 1,163,099 | ||||||
Total Switzerland | 11,869,103 | |||||||
Japan — 10.9% | ||||||||
Industrials — 5.9% | ||||||||
Amada Co. Ltd. | 125,700 | 958,408 | ||||||
Fuji Electric Co. Ltd. | 548,000 | 1,987,417 | ||||||
Mabuchi Motor Co. Ltd. | 32,800 | 1,424,163 | ||||||
Sumitomo Corp. | 168,200 | 1,626,563 | ||||||
Information Technology — 5.0% | ||||||||
Canon, Inc.† | 75,300 | 2,178,241 | ||||||
Hitachi Ltd. | 357,000 | 1,801,433 | ||||||
Trend Micro, Inc.† | 33,400 | 1,179,829 | ||||||
Total Japan | 11,156,054 | |||||||
France — 5.7% | ||||||||
Consumer Staples — 1.3% | ||||||||
Casino Guichard Perrachon SA | 24,531 | 1,306,404 | ||||||
Energy — 1.0% | ||||||||
Technip SA | 22,600 | 1,069,520 | ||||||
Health Care — 3.4% | ||||||||
Sanofi | 36,025 | 3,429,602 | ||||||
Total France | 5,805,526 | |||||||
Denmark — 4.6% | ||||||||
Financials — 3.3% | ||||||||
Danske Bank A/S | 111,225 | 3,361,258 | ||||||
Telecommunication Services — 1.3% | ||||||||
TDC A/S | 250,000 | 1,289,334 | ||||||
Total Denmark | 4,650,592 | |||||||
Germany — 4.0% | ||||||||
Consumer Discretionary — 1.2% | ||||||||
Daimler AG | 17,100 | 1,244,940 | ||||||
Financials — 2.8% | ||||||||
Deutsche Boerse AG | 33,406 | 2,881,084 | ||||||
Total Germany | 4,126,024 | |||||||
Singapore — 3.7% | ||||||||
Consumer Discretionary — 1.8% | ||||||||
Jardine Cycle & Carriage Ltd. | 96,800 | 1,839,219 | ||||||
Financials — 1.9% | ||||||||
United Overseas Bank Ltd. | 150,700 | 1,967,707 | ||||||
Total Singapore | 3,806,926 | |||||||
Spain — 3.0% | ||||||||
Financials — 3.0% | ||||||||
Banco de Sabadell SA | 638,900 | 1,175,939 | ||||||
Banco Santander SA | 348,988 | 1,855,723 | ||||||
Total Spain | 3,031,662 |
18 |
Touchstone International Value Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.3% (Continued) | ||||||||
Ireland — 2.7% | ||||||||
Materials — 2.7% | ||||||||
CRH PLC | 105,700 | $ | 2,790,040 | |||||
Israel — 2.6% | ||||||||
Health Care — 2.6% | ||||||||
Teva Pharmaceutical Industries Ltd. ADR | 47,800 | 2,698,788 | ||||||
South Korea — 2.6% | ||||||||
Consumer Discretionary — 0.9% | ||||||||
Hankook Tire Co. Ltd. | 28,600 | 957,445 | ||||||
Financials — 1.7% | ||||||||
Shinhan Financial Group Co. Ltd. | 49,550 | 1,732,865 | ||||||
Total South Korea | 2,690,310 | |||||||
Austria — 2.3% | ||||||||
Financials — 2.3% | ||||||||
Erste Group Bank AG* | 82,100 | 2,385,911 | ||||||
Italy — 2.0% | ||||||||
Energy — 2.0% | ||||||||
Eni SpA | 131,791 | 2,073,129 | ||||||
Thailand — 1.8% | ||||||||
Consumer Staples — 1.5% | ||||||||
Charoen Pokphand Foods PCL | 2,570,300 | 1,468,794 | ||||||
Financials — 0.3% | ||||||||
Bangkok Bank PCL | 76,500 | 336,027 | ||||||
Total Thailand | 1,804,821 | |||||||
Brazil — 1.7% | ||||||||
Industrials — 1.7% | ||||||||
Embraer SA ADR | 67,800 | 1,734,324 | ||||||
Norway — 1.6% | ||||||||
Consumer Staples — 1.6% | ||||||||
Orkla ASA | 216,567 | 1,601,574 | ||||||
Hong Kong — 1.1% | ||||||||
Utilities — 1.1% | ||||||||
Guangdong Investment Ltd. | 738,900 | 1,102,973 | ||||||
United States — 1.0% | ||||||||
Consumer Staples — 0.7% | ||||||||
Philip Morris International, Inc. | 8,500 | 674,305 | ||||||
Industrials — 0.3% | ||||||||
Joy Global, Inc. | 21,000 | 313,530 | ||||||
Total United States | 987,835 | |||||||
Indonesia — 0.4% | ||||||||
Telecommunication Services — 0.4% | ||||||||
Telekomunikasi Indonesia Persero Tbk PT | 1,990,600 | 359,505 | ||||||
Total Common Stocks | $ | 98,398,109 | ||||||
Investment Funds — 4.1% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 3,500,488 | 3,500,488 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.04%**∞Ω | 660,760 | 660,760 | ||||||
Total Investment Funds | $ | 4,161,248 | ||||||
Total Investment Securities —100.4% | ||||||||
(Cost $112,071,040) | $ | 102,559,357 | ||||||
Liabilities in Excess of Other Assets — (0.4%) | (359,823 | ) | ||||||
Net Assets — 100.0% | $ | 102,199,534 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $639,890. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PCL - Public Company Limited
PLC - Public Limited Company
19 |
Touchstone International Value Fund (Unaudited) (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 | ||||||||||||||||
United Kingdom | $ | 2,112,992 | $ | 18,858,757 | $ | — | $ | 20,971,749 | ||||||||
Netherlands | 3,916,478 | 8,834,785 | — | 12,751,263 | ||||||||||||
Switzerland | 563,673 | 11,305,430 | — | 11,869,103 | ||||||||||||
Japan | — | 11,156,054 | — | 11,156,054 | ||||||||||||
France | — | 5,805,526 | — | 5,805,526 | ||||||||||||
Denmark | — | 4,650,592 | — | 4,650,592 | ||||||||||||
Germany | — | 4,126,024 | — | 4,126,024 | ||||||||||||
Singapore | — | 3,806,926 | — | 3,806,926 | ||||||||||||
Spain | — | 3,031,662 | — | 3,031,662 | ||||||||||||
Ireland | — | 2,790,040 | — | 2,790,040 | ||||||||||||
Israel | 2,698,788 | — | — | 2,698,788 | ||||||||||||
South Korea | — | 2,690,310 | — | 2,690,310 | ||||||||||||
Austria | — | 2,385,911 | — | 2,385,911 | ||||||||||||
Italy | — | 2,073,129 | — | 2,073,129 | ||||||||||||
Thailand | — | 1,804,821 | — | 1,804,821 | ||||||||||||
Brazil | 1,734,324 | — | — | 1,734,324 | ||||||||||||
Norway | — | 1,601,574 | — | 1,601,574 | ||||||||||||
Hong Kong | — | 1,102,973 | — | 1,102,973 | ||||||||||||
United States | 987,835 | — | — | 987,835 | ||||||||||||
Indonesia | — | 359,505 | — | 359,505 | ||||||||||||
Investment Funds | 4,161,248 | — | — | 4,161,248 | ||||||||||||
$ | 102,559,357 |
At September 30, 2015, equity securities valued at $5,655,878 were transferred from Level 2 to Level 1. Transfers from Level 2 to Level 1 occur when the movement of the designated U.S. market index is no longer significant.
See accompanying Notes to Financial Statements.
20 |
Touchstone Mid Cap Growth Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.2% | ||||||||
Health Care — 20.5% | ||||||||
Agilent Technologies, Inc. | 314,670 | $ | 10,802,621 | |||||
Align Technology, Inc.* | 210,331 | 11,938,388 | ||||||
Allscripts Healthcare Solutions, Inc.* | 905,161 | 11,223,996 | ||||||
AMAG Pharmaceuticals, Inc.* | 298,830 | 11,872,516 | ||||||
Cooper Cos., Inc. (The) | 91,459 | 13,614,587 | ||||||
ICON PLC (Ireland)* | 224,710 | 15,947,669 | ||||||
Jazz Pharmaceuticals PLC (Ireland)* | 132,849 | 17,643,676 | ||||||
Quest Diagnostics, Inc. | 233,390 | 14,346,483 | ||||||
Teleflex, Inc. | 55,520 | 6,896,139 | ||||||
United Therapeutics Corp.* | 115,260 | 15,126,722 | ||||||
Vertex Pharmaceuticals, Inc.* | 146,881 | 15,296,187 | ||||||
144,708,984 | ||||||||
Consumer Discretionary — 18.6% | ||||||||
AMC Networks, Inc. - Class A* | 140,350 | 10,269,410 | ||||||
BorgWarner, Inc. | 178,190 | 7,410,922 | ||||||
Charter Communications, Inc.* | 39,360 | 6,921,456 | ||||||
Dollar General Corp. | 162,430 | 11,766,429 | ||||||
Dollar Tree, Inc.* | 151,385 | 10,091,324 | ||||||
Expedia, Inc. | 111,960 | 13,175,453 | ||||||
Jarden Corp.* | 310,972 | 15,200,311 | ||||||
Six Flags Entertainment Corp. | 398,180 | 18,228,680 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 213,675 | 14,205,114 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc.* | 104,865 | 17,129,698 | ||||||
VF Corp. | 105,630 | 7,205,022 | ||||||
131,603,819 | ||||||||
Industrials — 17.1% | ||||||||
Fortune Brands Home & Security, Inc. | 182,060 | 8,642,388 | ||||||
IHS, Inc. - Class A* | 96,190 | 11,158,040 | ||||||
JB Hunt Transport Services, Inc. | 139,555 | 9,964,227 | ||||||
Lennox International, Inc. | 122,841 | 13,921,571 | ||||||
Macquarie Infrastructure Co. LLC | 100,920 | 7,534,687 | ||||||
ManpowerGroup, Inc. | 118,270 | 9,685,130 | ||||||
Middleby Corp. (The)* | 124,575 | 13,104,044 | ||||||
Nielsen Holdings PLC | 260,191 | 11,570,694 | ||||||
TransDigm Group, Inc.* | 42,520 | 9,031,673 | ||||||
United Continental Holdings, Inc.* | 361,910 | 19,199,326 | ||||||
WABCO Holdings, Inc.* | 66,185 | 6,938,174 | ||||||
120,749,954 | ||||||||
Information Technology — 15.4% | ||||||||
Alliance Data Systems Corp.* | 52,825 | 13,680,619 | ||||||
Applied Materials, Inc. | 595,410 | 8,746,573 | ||||||
Autodesk, Inc.* | 208,160 | 9,188,182 | ||||||
LinkedIn Corp. - Class A* | 60,236 | 11,452,671 | ||||||
Maxim Integrated Products, Inc. | 400,540 | 13,378,036 | ||||||
NICE Systems Ltd. ADR | 240,483 | 13,546,407 | ||||||
Red Hat, Inc.* | 160,850 | 11,561,898 | ||||||
Sabre Corp. | 447,850 | 12,172,563 | ||||||
Total System Services, Inc. | 326,422 | 14,829,351 | ||||||
108,556,300 | ||||||||
Financials — 12.2% | ||||||||
Ameriprise Financial, Inc. | 127,730 | 13,939,175 | ||||||
Aon PLC (United Kingdom) | 123,000 | 10,899,030 | ||||||
Assurant, Inc. | 129,520 | 10,233,375 | ||||||
BankUnited, Inc. | 449,430 | 16,067,123 | ||||||
CBRE Group, Inc. - Class A* | 257,043 | 8,225,376 | ||||||
Crown Castle International Corp. REIT | 123,000 | 9,701,010 | ||||||
Unum Group | 533,010 | 17,098,961 | ||||||
86,164,050 | ||||||||
Materials — 6.1% | ||||||||
Eastman Chemical Co. | 144,604 | 9,358,771 | ||||||
Scotts Miracle-Gro Co. (The) - Class A | 123,003 | 7,481,042 | ||||||
Vulcan Materials Co. | 182,140 | 16,246,888 | ||||||
WR Grace & Co.* | 104,870 | 9,758,154 | ||||||
42,844,855 | ||||||||
Energy — 3.9% | ||||||||
CONSOL Energy, Inc.† | 469,930 | 4,605,314 | ||||||
Tesoro Corp. | 119,847 | 11,653,922 | ||||||
Valero Energy Corp. | 190,078 | 11,423,688 | ||||||
27,682,924 | ||||||||
Consumer Staples — 2.4% | ||||||||
Constellation Brands, Inc. - Class A | 137,196 | 17,178,311 | ||||||
Total Common Stocks | $ | 679,489,197 | ||||||
Investment Funds — 5.2% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 32,851,796 | 32,851,796 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.04%**∞Ω | 4,268,832 | 4,268,832 | ||||||
Total Investment Funds | $ | 37,120,628 | ||||||
Total Investment Securities —101.4% | ||||||||
(Cost $649,819,959) | $ | 716,609,825 | ||||||
Liabilities in Excess of Other Assets — (1.4%) | (10,084,842 | ) | ||||||
Net Assets — 100.0% | $ | 706,524,983 |
21 |
Touchstone Mid Cap Growth Fund (Unaudited) (Continued)
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $4,357,766. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
LLC - Limited Liability Company
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 | $ | 679,489,197 | $ | — | $ | — | $ | 679,489,197 | ||||||||
Investment Funds | 37,120,628 | — | — | 37,120,628 | ||||||||||||
$ | 716,609,825 |
See accompanying Notes to Financial Statements.
22 |
Touchstone Sands Capital Emerging Markets Growth Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 59.9% | ||||||||
Cayman Islands — 17.0% | ||||||||
Consumer Discretionary — 5.4% | ||||||||
NagaCorp Ltd. | 1,186,000 | $ | 713,195 | |||||
Qunar Cayman Islands Ltd. ADR*† | 61,800 | 1,858,326 | ||||||
Sands China Ltd. | 507,200 | 1,540,600 | ||||||
Information Technology — 11.6% | ||||||||
Alibaba Group Holding, Ltd. ADR* | 62,900 | 3,709,214 | ||||||
Baidu, Inc. ADR* | 30,300 | 4,163,523 | ||||||
Tencent Holdings Ltd. | 58,300 | 982,739 | ||||||
Total Cayman Islands | 12,967,597 | |||||||
South Africa — 7.5% | ||||||||
Consumer Discretionary — 6.4% | ||||||||
Naspers Ltd. - Class N | 39,000 | 4,887,761 | ||||||
Consumer Staples — 1.1% | ||||||||
Shoprite Holdings Ltd. | 71,500 | 812,017 | ||||||
Total South Africa | 5,699,778 | |||||||
Brazil — 5.1% | ||||||||
Consumer Staples — 3.0% | ||||||||
Raia Drogasil SA | 226,600 | 2,235,421 | ||||||
Information Technology — 2.1% | ||||||||
Cielo SA | 173,880 | 1,616,652 | ||||||
Total Brazil | 3,852,073 | |||||||
Thailand — 3.6% | ||||||||
Consumer Staples — 2.3% | ||||||||
CP ALL PCL | 1,295,100 | 1,710,533 | ||||||
Health Care — 1.3% | ||||||||
Bangkok Dusit Medical Services PCL - Class F | 1,952,100 | 997,128 | ||||||
Total Thailand | 2,707,661 | |||||||
Philippines — 3.4% | ||||||||
Consumer Staples — 2.3% | ||||||||
Universal Robina Corp. | 427,200 | 1,754,865 | ||||||
Financials — 1.1% | ||||||||
SM Prime Holdings, Inc. | 1,866,600 | 826,920 | ||||||
Total Philippines | 2,581,785 | |||||||
Indonesia — 3.3% | ||||||||
Financials — 2.0% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 2,638,500 | 1,562,245 | ||||||
Health Care — 1.3% | ||||||||
Kalbe Farma Tbk PT | 10,315,000 | 970,570 | ||||||
Total Indonesia | 2,532,815 | |||||||
United Kingdom — 3.0% | ||||||||
Health Care — 3.0% | ||||||||
Hikma Pharmaceuticals PLC | 66,600 | 2,300,606 | ||||||
Taiwan — 2.7% | ||||||||
Information Technology — 2.7% | ||||||||
Largan Precision Co. Ltd. | 13,000 | 1,014,584 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 251,000 | 1,005,927 | ||||||
Total Taiwan | 2,020,511 | |||||||
Russia — 2.4% | ||||||||
Consumer Staples — 2.4% | ||||||||
Magnit OJSC GDR | 37,700 | 1,803,415 | ||||||
United States — 2.3% | ||||||||
Information Technology — 2.3% | ||||||||
MercadoLibre, Inc. | 18,900 | 1,721,034 | ||||||
South Korea — 2.2% | ||||||||
Consumer Staples — 2.2% | ||||||||
Amorepacific Corp. | 1,900 | 619,150 | ||||||
LG Household & Health Care Ltd. | 1,500 | 1,085,534 | ||||||
Total South Korea | 1,704,684 | |||||||
Turkey — 1.8% | ||||||||
Consumer Staples — 1.8% | ||||||||
BIM Birlesik Magazalar AS | 79,100 | 1,402,719 | ||||||
China — 1.7% | ||||||||
Health Care — 1.7% | ||||||||
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H | 2,000,000 | 1,267,898 | ||||||
Malaysia — 1.5% | ||||||||
Health Care — 1.5% | ||||||||
IHH Healthcare Bhd | 844,400 | 1,146,805 | ||||||
Peru — 1.3% | ||||||||
Financials — 1.3% | ||||||||
Credicorp Ltd. | 9,500 | 1,010,420 | ||||||
Virgin Islands (British) — 1.1% | ||||||||
Information Technology — 1.1% | ||||||||
Mail.ru Group Ltd. GDR* | 47,700 | 829,980 | ||||||
Total Common Stocks | $ | 45,549,781 |
23 |
Touchstone Sands Capital Emerging Markets Growth Fund (Unaudited) (Continued)
Number | Market | |||||||
of Contracts | Value | |||||||
Low Exercise Price Options — 35.0% | ||||||||
India — 31.3% | ||||||||
Adani Ports and Special Economic | ||||||||
Zone | ||||||||
Strike $0.0001, Exp 9/21/16 | 693,900 | $ | 3,136,428 | |||||
Apollo Hospitals Enterprise Ltd. | ||||||||
Strike $0.0001, Exp 9/23/16 | 73,300 | 1,598,673 | ||||||
Asian Paints Ltd. | ||||||||
Strike $0.01, Exp 7/31/18 | 168,800 | 2,148,824 | ||||||
Bharat Forge Ltd. | ||||||||
Strike $0.01, Exp 4/22/19 | 46,200 | 634,326 | ||||||
Eicher Motors Ltd. | ||||||||
Strike $0.01, Exp 5/14/20 | 4,900 | 1,325,744 | ||||||
Housing Development Finance Corp. | ||||||||
Strike $0.0001, Exp 5/5/16 | 234,800 | 4,308,580 | ||||||
ITC Ltd. | ||||||||
Strike $0.0001, Exp 8/4/16 | 408,900 | 2,036,322 | ||||||
Jubilant Foodworks Ltd. | ||||||||
Strike $0.01, Exp 7/25/17 | 113,600 | 2,752,528 | ||||||
Larsen & Toubro Ltd. | ||||||||
Strike $0.01, Exp 09/18/17 | 73,200 | 1,624,308 | ||||||
Lupin Ltd. | ||||||||
Strike $0.001, Exp 6/8/17 | 64,700 | 1,991,466 | ||||||
Shriram Transport Finance Co. Ltd. | ||||||||
Strike $0.01, Exp 8/29/18 | 105,500 | 1,477,000 | ||||||
Zee Entertainment Enterprises Ltd. | ||||||||
Strike $0.01, Exp 3/1/17 | 131,800 | 782,892 | ||||||
Total India | 23,817,091 | |||||||
Saudi Arabia — 3.7% | ||||||||
Almarai Co. Ltd. | ||||||||
Strike $0.0001, Exp 3/13/17 | 126,200 | 2,818,929 | ||||||
Total Low Exercise Price Options | $ | 26,636,020 | ||||||
Shares | ||||||||
Investment Funds — 2.3% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 60,400 | 60,400 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.04%**∞Ω | 1,722,125 | 1,722,125 | ||||||
Total Investment Funds | $ | 1,782,525 | ||||||
Total Investment Securities —97.2% | ||||||||
(Cost $79,367,617) | $ | 73,968,326 | ||||||
Other Assets in Excess of Liabilities — 2.8% | 2,133,386 | |||||||
Net Assets — 100.0% | $ | 76,101,712 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $1,801,193. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
PCL - Public Company Limited
PLC - Public Limited Company
24 |
Touchstone Sands Capital Emerging Markets Growth Fund (Unaudited) (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 | ||||||||||||||||
Cayman Islands | $ | 9,731,063 | $ | 3,236,534 | $ | — | $ | 12,967,597 | ||||||||
South Africa | — | 5,699,778 | — | 5,699,778 | ||||||||||||
Brazil | 3,852,073 | — | — | 3,852,073 | ||||||||||||
Thailand | — | 2,707,661 | — | 2,707,661 | ||||||||||||
Philippines | 1,754,865 | 826,920 | — | 2,581,785 | ||||||||||||
Indonesia | — | 2,532,815 | — | 2,532,815 | ||||||||||||
United Kingdom | — | 2,300,606 | — | 2,300,606 | ||||||||||||
Taiwan | — | 2,020,511 | — | 2,020,511 | ||||||||||||
Russia | — | 1,803,415 | — | 1,803,415 | ||||||||||||
United States | 1,721,034 | — | — | 1,721,034 | ||||||||||||
South Korea | — | 1,704,684 | — | 1,704,684 | ||||||||||||
Turkey | 1,402,719 | — | — | 1,402,719 | ||||||||||||
China | — | 1,267,898 | — | 1,267,898 | ||||||||||||
Malaysia | 1,146,805 | — | — | 1,146,805 | ||||||||||||
Peru | 1,010,420 | — | — | 1,010,420 | ||||||||||||
Virgin Islands (British) | 829,980 | — | — | 829,980 | ||||||||||||
Low Exercise Price | ||||||||||||||||
Options | ||||||||||||||||
Equity Contracts | — | 26,636,020 | — | 26,636,020 | ||||||||||||
Investment Funds | 1,782,525 | — | — | 1,782,525 | ||||||||||||
$ | 73,968,326 |
At September 30, 2015, equity securities valued at $2,082,662 and $3,987,564 were transferred from Level 1 to Level 2 and from Level 2 to Level 1, respectively. Transfers from Level 1 to Level 2 are due to significant movement of a designated U.S. market index, triggering a systematic valuation model provided by an independent third party to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when the movement of the designated U.S. market index is no longer significant.
See accompanying Notes to Financial Statements.
25 |
Touchstone Small Cap Growth Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.1% | ||||||||
Health Care — 27.5% | ||||||||
ABIOMED, Inc.* | 113,699 | $ | 10,546,719 | |||||
Acadia Pharmaceuticals, Inc.* | 81,570 | 2,697,520 | ||||||
Agios Pharmaceuticals, Inc.*† | 29,581 | 2,088,123 | ||||||
Akorn, Inc.* | 184,138 | 5,248,854 | ||||||
Alder Biopharmaceuticals, Inc.* | 51,116 | 1,674,560 | ||||||
AMN Healthcare Services, Inc.* | 182,542 | 5,478,085 | ||||||
Anacor Pharmaceuticals, Inc.* | 22,342 | 2,629,877 | ||||||
ANI Pharmaceuticals, Inc.*† | 79,983 | 3,160,128 | ||||||
Bluebird Bio, Inc.* | 23,752 | 2,031,983 | ||||||
Cambrex Corp.* | 139,566 | 5,537,979 | ||||||
Charles River Laboratories International, Inc.* | 115,034 | 7,306,960 | ||||||
Chemed Corp. | 53,329 | 7,117,822 | ||||||
China Biologic Products, Inc.* | 78,049 | 7,010,361 | ||||||
Enanta Pharmaceuticals, Inc.*† | 101,231 | 3,658,488 | ||||||
Globus Medical, Inc. - Class A* | 123,692 | 2,555,477 | ||||||
Horizon Pharma PLC*† | 259,968 | 5,152,566 | ||||||
ICON PLC (Ireland)* | 159,474 | 11,317,870 | ||||||
Insulet Corp.* | 83,352 | 2,159,650 | ||||||
Medidata Solutions, Inc.* | 123,989 | 5,221,177 | ||||||
Momenta Pharmaceuticals, Inc.* | 107,571 | 1,765,240 | ||||||
Natus Medical, Inc.* | 155,746 | 6,144,180 | ||||||
Ophthotech Corp.* | 85,148 | 3,450,197 | ||||||
Radius Health, Inc.* | 37,380 | 2,590,808 | ||||||
STERIS Corp. | 74,038 | 4,810,249 | ||||||
Tandem Diabetes Care, Inc.* | 138,048 | 1,216,203 | ||||||
WuXi PharmaTech Cayman, Inc. ADR* | 170,316 | 7,359,354 | ||||||
ZS Pharma, Inc.*† | 32,722 | 2,148,526 | ||||||
122,078,956 | ||||||||
Information Technology — 26.4% | ||||||||
ARRIS Group, Inc.* | 184,450 | 4,790,167 | ||||||
Bitauto Holdings Ltd. ADR* | 63,701 | 1,896,379 | ||||||
Ciena Corp.* | 247,845 | 5,135,348 | ||||||
Cimpress NV (Netherlands)*† | 55,452 | 4,220,452 | ||||||
Cirrus Logic, Inc.* | 155,139 | 4,888,430 | ||||||
comScore, Inc.*† | 124,931 | 5,765,566 | ||||||
Euronet Worldwide, Inc.* | 172,282 | 12,764,373 | ||||||
Heartland Payment Systems, Inc. | 208,885 | 13,161,844 | ||||||
Infinera Corp.* | 344,957 | 6,747,359 | ||||||
j2 Global, Inc. | 88,251 | 6,252,583 | ||||||
Manhattan Associates, Inc.* | 159,919 | 9,962,954 | ||||||
MAXIMUS, Inc. | 114,938 | 6,845,707 | ||||||
Mentor Graphics Corp. | 202,836 | 4,995,851 | ||||||
Power Integrations, Inc. | 95,483 | 4,026,518 | ||||||
Radware Ltd. (Israel)* | 137,357 | 2,233,425 | ||||||
Super Micro Computer, Inc.* | 119,667 | 3,262,122 | ||||||
Synaptics, Inc.* | 56,540 | 4,662,288 | ||||||
Syntel, Inc.* | 92,961 | 4,212,063 | ||||||
Verint Systems, Inc.* | 117,958 | 5,089,888 | ||||||
Virtusa Corp.* | 130,510 | 6,696,468 | ||||||
117,609,785 | ||||||||
Consumer Discretionary — 15.5% | ||||||||
Burlington Stores, Inc.* | 174,783 | 8,920,924 | ||||||
Columbia Sportswear Co. | 101,027 | 5,939,378 | ||||||
Cooper Tire & Rubber Co. | 152,695 | 6,032,980 | ||||||
G-III Apparel Group Ltd.* | 139,255 | 8,586,463 | ||||||
Imax Corp. (Canada)* | 136,170 | 4,601,184 | ||||||
Jumei International Holding Ltd. | ||||||||
(Cayman Islands) ADR*† | 174,322 | 1,720,558 | ||||||
La-Z-Boy, Inc. | 222,522 | 5,910,184 | ||||||
Lithia Motors, Inc. - Class A | 71,556 | 7,735,919 | ||||||
Pinnacle Entertainment, Inc.* | 94,432 | 3,195,579 | ||||||
Restoration Hardware Holdings, Inc.*† | 81,849 | 7,637,330 | ||||||
Skechers U.S.A., Inc. - Class A* | 31,406 | 4,210,917 | ||||||
Sportsman's Warehouse Holdings, Inc.* | 361,512 | 4,453,828 | ||||||
68,945,244 | ||||||||
Financials — 10.2% | ||||||||
Amtrust Financial Services, Inc.† | 52,560 | 3,310,229 | ||||||
BofI Holding, Inc.* | 50,996 | 6,569,815 | ||||||
E-House China Holdings Ltd. ADR† | 288,904 | 1,716,090 | ||||||
Financial Engines, Inc.† | 126,317 | 3,722,562 | ||||||
Green Dot Corp. - Class A* | 250,733 | 4,412,901 | ||||||
HFF, Inc. - Class A | 213,044 | 7,192,365 | ||||||
Interactive Brokers Group, Inc. - Class A | 114,266 | 4,510,079 | ||||||
Janus Capital Group, Inc. | 351,524 | 4,780,726 | ||||||
MarketAxess Holdings, Inc. | 42,981 | 3,992,075 | ||||||
PRA Group, Inc.*† | 93,554 | 4,950,878 | ||||||
45,157,720 | ||||||||
Industrials — 8.1% | ||||||||
Astronics Corp.* | 107,223 | 4,335,026 | ||||||
AZZ, Inc. | 102,937 | 5,012,002 | ||||||
CaesarStone Sdot - Yam Ltd. (Israel) | 113,840 | 3,460,736 | ||||||
Hexcel Corp. | 116,881 | 5,243,282 | ||||||
Korn/Ferry International | 179,314 | 5,929,914 | ||||||
Proto Labs, Inc.*† | 70,465 | 4,721,155 | ||||||
Saia, Inc.* | 137,145 | 4,244,638 | ||||||
Tutor Perini Corp.* | 190,763 | 3,139,959 | ||||||
36,086,712 | ||||||||
Consumer Staples — 3.9% | ||||||||
B&G Foods, Inc. | 130,384 | 4,752,497 | ||||||
Boston Beer Co., Inc. (The) - Class A* | 22,628 | 4,765,683 | ||||||
Casey's General Stores, Inc. | 75,533 | 7,773,856 | ||||||
17,292,036 | ||||||||
Energy — 3.5% | ||||||||
Carrizo Oil & Gas, Inc.* | 136,634 | 4,172,802 | ||||||
Diamondback Energy, Inc.* | 60,716 | 3,922,254 | ||||||
Matador Resources Co.* | 149,633 | 3,103,388 | ||||||
Matrix Service Co.* | 189,240 | 4,252,223 | ||||||
15,450,667 | ||||||||
Materials — 2.0% | ||||||||
KapStone Paper and Packaging Corp. | 208,174 | 3,436,953 | ||||||
LSB Industries, Inc.* | 19,559 | 299,644 | ||||||
Silgan Holdings, Inc. | 103,083 | 5,364,439 | ||||||
9,101,036 | ||||||||
Total Common Stocks | $ | 431,722,156 |
26 |
Touchstone Small Cap Growth Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Exchange Traded Fund — 1.6% | ||||||||
iShares Russell 2000 Growth ETF† | 55,000 | $ | 7,368,350 | |||||
Investment Funds — 11.6% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 16,258,735 | 16,258,735 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.04%**∞Ω | 35,159,543 | 35,159,543 | ||||||
Total Investment Funds | $ | 51,418,278 | ||||||
Total Investment Securities —110.3% | ||||||||
(Cost $491,428,648) | $ | 490,508,784 | ||||||
Liabilities in Excess of Other Assets — (10.3%) | (45,724,803 | ) | ||||||
Net Assets — 100.0% | $ | 444,783,981 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2015 was $36,355,903. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
ETF - Exchange Traded Fund
PLC - Public Limited Company
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 | $ | 431,722,156 | $ | — | $ | — | $ | 431,722,156 | ||||||||
Exchange Traded Fund | 7,368,350 | — | — | 7,368,350 | ||||||||||||
Investment Funds | 51,418,278 | — | — | 51,418,278 | ||||||||||||
$ | 490,508,784 |
See accompanying Notes to Financial Statements.
27 |
Touchstone Sustainability and Impact Equity Fund – September 30, 2015 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 99.2% | ||||||||
United States — 58.2% | ||||||||
Consumer Discretionary — 5.8% | ||||||||
Comcast Corp. - Class A | 103,724 | $ | 5,899,821 | |||||
Ford Motor Co. | 302,358 | 4,102,998 | ||||||
Macy's, Inc. | 76,820 | 3,942,402 | ||||||
Panera Bread Co. - Class A* | 13,741 | 2,657,647 | ||||||
Consumer Staples — 2.6% | ||||||||
CVS Health Corp. | 77,209 | 7,449,124 | ||||||
Energy — 3.6% | ||||||||
Anadarko Petroleum Corp. | 78,645 | 4,749,372 | ||||||
Apache Corp. | 95,572 | 3,742,600 | ||||||
Noble Energy, Inc. | 66,469 | 2,006,034 | ||||||
Financials — 13.0% | ||||||||
Aflac, Inc. | 90,838 | 5,280,414 | ||||||
Annaly Capital Management, Inc. REIT | 322,670 | 3,184,753 | ||||||
Comerica, Inc. | 124,675 | 5,124,142 | ||||||
Discover Financial Services | 70,798 | 3,680,788 | ||||||
JPMorgan Chase & Co. | 133,995 | 8,169,675 | ||||||
M&T Bank Corp. | 52,097 | 6,353,229 | ||||||
Reinsurance Group of America, Inc. | 61,859 | 5,603,807 | ||||||
Health Care — 9.7% | ||||||||
Baxalta, Inc. | 129,060 | 4,066,681 | ||||||
Express Scripts Holding Co.* | 80,344 | 6,504,650 | ||||||
Incyte Corp. Ltd.* | 20,564 | 2,268,826 | ||||||
Merck & Co., Inc. | 110,140 | 5,439,815 | ||||||
Regeneron Pharmaceuticals, Inc.* | 9,149 | 4,255,566 | ||||||
St Jude Medical, Inc. | 66,411 | 4,189,870 | ||||||
Ultragenyx Pharmaceutical, Inc.* | 12,457 | 1,199,734 | ||||||
Industrials — 8.5% | ||||||||
Roper Technologies, Inc. | 33,727 | 5,285,021 | ||||||
Southwest Airlines Co. | 196,327 | 7,468,279 | ||||||
United Continental Holdings, Inc.* | 112,244 | 5,954,544 | ||||||
United Parcel Service, Inc. - Class B | 33,330 | 3,289,338 | ||||||
USG Corp.* | 89,999 | 2,395,773 | ||||||
Information Technology — 11.0% | ||||||||
Google, Inc. - Class A* | 19,568 | 12,491,624 | ||||||
Microsoft Corp. | 164,987 | 7,302,325 | ||||||
Oracle Corp. | 141,611 | 5,114,989 | ||||||
Visa, Inc. - Class A | 97,589 | 6,798,050 | ||||||
Materials — 0.8% | ||||||||
Praxair, Inc. | 22,025 | 2,243,466 | ||||||
Telecommunication Services — 1.2% | ||||||||
SBA Communications Corp. - Class A* | 33,147 | 3,471,817 | ||||||
Utilities — 2.0% | ||||||||
American Water Works Co., Inc. | 103,468 | 5,699,017 | ||||||
Total United States | 167,386,191 | |||||||
Japan — 10.8% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
NGK Spark Plug Co. Ltd. | 128,600 | 2,952,119 | ||||||
Industrials — 4.9% | ||||||||
Amada Holdings Co. Ltd. | 481,100 | 3,668,179 | ||||||
Kinden Corp. | 373,400 | 4,735,917 | ||||||
Nabtesco Corp. | 161,500 | 2,950,617 | ||||||
SMC Corp. | 12,400 | 2,715,085 | ||||||
Telecommunication Services — 4.9% | ||||||||
Nippon Telegraph & Telephone Corp. | 286,200 | 10,081,005 | ||||||
SoftBank Group Corp. | 84,400 | 3,902,640 | ||||||
Total Japan | 31,005,562 | |||||||
United Kingdom — 10.1% | ||||||||
Consumer Discretionary — 2.9% | ||||||||
Delphi Automotive PLC | 65,861 | 5,008,070 | ||||||
InterContinental Hotels Group PLC | 95,376 | 3,304,236 | ||||||
Consumer Staples — 1.1% | ||||||||
Unilever PLC ADR | 75,272 | 3,069,592 | ||||||
Energy — 1.3% | ||||||||
BG Group PLC | 267,268 | 3,855,565 | ||||||
Financials — 1.4% | ||||||||
Prudential PLC | 194,208 | 4,097,102 | ||||||
Industrials — 2.6% | ||||||||
Intertek Group PLC | 63,106 | 2,328,767 | ||||||
Pentair PLC | 100,869 | 5,148,354 | ||||||
Materials — 0.8% | ||||||||
Johnson Matthey PLC | 63,918 | 2,369,806 | ||||||
Total United Kingdom | 29,181,492 | |||||||
Switzerland — 3.8% | ||||||||
Health Care — 2.8% | ||||||||
Novartis AG | 85,821 | 7,887,970 | ||||||
Information Technology — 1.0% | ||||||||
TE Connectivity Ltd. | 49,324 | 2,954,014 | ||||||
Total Switzerland | 10,841,984 | |||||||
Netherlands — 3.7% | ||||||||
Financials — 3.1% | ||||||||
ING Groep NV | 617,198 | 8,724,208 | ||||||
Information Technology — 0.6% | ||||||||
InterXion Holding NV* | 66,436 | 1,799,087 | ||||||
Total Netherlands | 10,523,295 | |||||||
Sweden — 3.2% | ||||||||
Financials — 3.2% | ||||||||
Svenska Handelsbanken AB - Class A | 357,960 | 5,134,886 |
28 |
Touchstone Sustainability and Impact Equity Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 99.2% (Continued) | ||||||||
Sweden — (Continued) | ||||||||
Financials — (Continued) | ||||||||
Swedbank AB - Class A | 184,421 | $ | 4,079,456 | |||||
Total Sweden | 9,214,342 | |||||||
Germany — 2.8% | ||||||||
Consumer Discretionary — 0.6% | ||||||||
Bayerische Motoren Werke AG | 20,102 | 1,753,762 | ||||||
Materials — 2.2% | ||||||||
HeidelbergCement AG | 93,697 | 6,434,391 | ||||||
Total Germany | 8,188,153 | |||||||
China — 2.2% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Ctrip.com International Ltd. ADR* | 43,620 | 2,755,912 | ||||||
Information Technology — 1.2% | ||||||||
Baidu, Inc. ADR* | 26,019 | 3,575,271 | ||||||
Total China | 6,331,183 | |||||||
France — 2.0% | ||||||||
Industrials — 2.0% | ||||||||
Cie DE Saint-Gobain | 93,068 | 4,039,207 | ||||||
Schneider Electric SE | 32,532 | 1,821,771 | ||||||
Total France | 5,860,978 | |||||||
Ireland — 1.1% | ||||||||
Health Care — 1.1% | ||||||||
Mallinckrodt PLC | 51,329 | 3,281,976 | ||||||
Hong Kong — 0.8% | ||||||||
Telecommunication Services — 0.8% | ||||||||
China Mobile Ltd. ADR | 37,186 | 2,212,567 | ||||||
Bermuda — 0.5% | ||||||||
Information Technology — 0.5% | ||||||||
Marvell Technology Group Ltd.* | 167,837 | 1,518,925 | ||||||
Total Common Stocks | $ | 285,546,648 | ||||||
Investment Fund — 0.4% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.06%∞Ω | 1,028,268 | $ | 1,028,268 | |||||
Total Investment Securities —99.6% | ||||||||
(Cost $319,626,534) | $ | 286,574,916 | ||||||
Other Assets in Excess of Liabilities — 0.4% | 1,204,046 | |||||||
Net Assets — 100.0% | $ | 287,778,962 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of September 30, 2015. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
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 | ||||||||||||||||
United States | $ | 167,386,191 | $ | — | $ | — | $ | 167,386,191 | ||||||||
Japan | — | 31,005,562 | — | 31,005,562 | ||||||||||||
United Kingdom | 13,226,016 | 15,955,476 | — | 29,181,492 | ||||||||||||
Switzerland | 2,954,014 | 7,887,970 | — | 10,841,984 | ||||||||||||
Netherlands | 10,523,295 | — | — | 10,523,295 | ||||||||||||
Sweden | — | 9,214,342 | — | 9,214,342 | ||||||||||||
Germany | — | 8,188,153 | — | 8,188,153 | ||||||||||||
China | 6,331,183 | — | — | 6,331,183 | ||||||||||||
France | — | 5,860,978 | — | 5,860,978 | ||||||||||||
Ireland | 3,281,976 | — | — | 3,281,976 | ||||||||||||
Hong Kong | 2,212,567 | — | — | 2,212,567 | ||||||||||||
Bermuda | 1,518,925 | — | — | 1,518,925 | ||||||||||||
Investment Fund | 1,028,268 | — | — | 1,028,268 | ||||||||||||
$ | 286,574,916 |
See accompanying Notes to Financial Statements.
29 |
Statements of Assets and Liabilities
September 30, 2015 (Unaudited)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Flexible | Touchstone | Growth | International | |||||||||||||
Income | Focused | Opportunities | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 365,861,789 | $ | 1,046,528,173 | $ | 251,379,493 | $ | 112,071,040 | ||||||||
Investments, at market value (A) | $ | 362,620,724 | $ | 1,135,348,249 | $ | 268,900,207 | $ | 102,559,357 | ||||||||
Cash deposits held at prime broker* | 832,250 | — | — | — | ||||||||||||
Foreign Currency (B) | 5,591 | — | — | 30,003 | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | 1,494,514 | — | — | — | ||||||||||||
Unrealized appreciation on swap agreements | 22,487 | — | — | — | ||||||||||||
Dividends and interest receivable | 3,441,001 | 1,340,173 | 189,848 | 165,460 | ||||||||||||
Receivable for capital shares sold | 5,434,163 | 4,034,073 | 689,558 | 82,848 | ||||||||||||
Receivable for investments sold | 1,690,334 | 7,571,924 | 7,733,905 | 56,558 | ||||||||||||
Receivable for variation margin on futures contracts | 376,913 | — | — | — | ||||||||||||
Receivable for securities lending income | 620 | 8,478 | 1,707 | 801 | ||||||||||||
Tax reclaim receivable | 22,085 | 144,903 | 1,896 | 125,597 | ||||||||||||
Other assets | 31,409 | 34,751 | 26,837 | 10,747 | ||||||||||||
Total Assets | 375,972,091 | 1,148,482,551 | 277,543,958 | 103,031,371 | ||||||||||||
Liabilities | ||||||||||||||||
Premium received on swap agreements | 75,943 | — | — | — | ||||||||||||
Bank overdrafts | — | — | — | — | ||||||||||||
Foreign currency (B) | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | 269,737 | — | — | — | ||||||||||||
Payable for return of collateral for securities on loan | 4,609,788 | 32,113,620 | 4,275,388 | 660,760 | ||||||||||||
Payable for capital shares redeemed | 169,632 | 694,551 | 942,130 | 9,470 | ||||||||||||
Payable for investments purchased | 3,643,677 | 9,835,806 | 1,978,135 | — | ||||||||||||
Payable to Investment Advisor | 193,107 | 573,671 | 165,425 | 69,741 | ||||||||||||
Payable to other affiliates | 29,579 | 175,436 | 37,937 | 399 | ||||||||||||
Payable to Trustees | 6,557 | 6,557 | 6,557 | 6,557 | ||||||||||||
Payable for professional services | 12,655 | 24,887 | 13,685 | 15,235 | ||||||||||||
Payable to Transfer Agent | 151,764 | 502,867 | 72,232 | 29,499 | ||||||||||||
Other accrued expenses and liabilities | 30,782 | 51,537 | 24,779 | 40,176 | ||||||||||||
Total Liabilities | 9,193,221 | 43,978,932 | 7,516,268 | 831,837 | ||||||||||||
Net Assets | $ | 366,778,870 | $ | 1,104,503,619 | $ | 270,027,690 | $ | 102,199,534 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 380,254,671 | $ | 963,988,774 | $ | 243,048,674 | $ | 224,062,074 | ||||||||
Accumulated net investment income (loss) | 176,836 | 11,193,856 | (195,431 | ) | 4,570,301 | |||||||||||
Accumulated net realized gains (losses) on investments, futures contracts, written options, swap agreements and foreign currency transactions | (12,025,228 | ) | 40,500,913 | 9,653,733 | (116,911,647 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments, futures contracts, swap agreements and foreign currency Transactions | (1,627,409 | ) | 88,820,076 | 17,520,714 | (9,521,194 | ) | ||||||||||
Net Assets | $ | 366,778,870 | $ | 1,104,503,619 | $ | 270,027,690 | $ | 102,199,534 | ||||||||
(A) Includes market value of securities on loan of: | $ | 4,478,299 | $ | 31,829,472 | $ | 4,367,993 | $ | 639,890 | ||||||||
(B) Cost of foreign currency: | $ | 5,893 | $ | — | $ | — | $ | 30,004 |
* Represents segregated cash for futures contracts and swap agreements.
See accompanying Notes to Financial Statements.
30 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | ||||||||||||||
Touchstone | Sands Capital | Touchstone | ||||||||||||
Mid Cap | Emerging | Touchstone | Sustainability | |||||||||||
Growth | Markets | Small Cap | and Impact | |||||||||||
Fund | Growth Fund | Growth Fund | Equity Fund | |||||||||||
$ | 649,819,959 | $ | 79,367,617 | $ | 491,428,648 | $ | 319,626,534 | |||||||
$ | 716,609,825 | $ | 73,968,326 | $ | 490,508,784 | $ | 286,574,916 | |||||||
— | — | — | — | |||||||||||
— | 26,807 | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
300,727 | 16,532 | 138,140 | 582,702 | |||||||||||
1,041,706 | 3,291,557 | 4,855,765 | 187,702 | |||||||||||
1,455,947 | 761,982 | 9,143,830 | 1,681,590 | |||||||||||
— | — | — | — | |||||||||||
1,208 | 388 | 17,351 | 33 | |||||||||||
— | 1,497 | 1,156 | 41,158 | |||||||||||
38,632 | 16,022 | 82,981 | 109,653 | |||||||||||
719,448,045 | 78,083,111 | 504,748,007 | 289,177,754 | |||||||||||
— | — | — | — | |||||||||||
— | — | 1,221 | 1,498 | |||||||||||
— | — | — | 8 | |||||||||||
— | — | — | — | |||||||||||
4,268,832 | 1,722,125 | 35,159,543 | — | |||||||||||
828,245 | 81,711 | 2,192,759 | 935,325 | |||||||||||
6,746,743 | 38,275 | 22,031,151 | — | |||||||||||
447,018 | 67,284 | 406,316 | 166,688 | |||||||||||
251,979 | 6,499 | 33,909 | 72,266 | |||||||||||
6,557 | 6,557 | 6,557 | 6,557 | |||||||||||
20,714 | 19,280 | 13,985 | 4,434 | |||||||||||
301,768 | 6,132 | 110,946 | 209,908 | |||||||||||
51,206 | 33,536 | 7,639 | 2,108 | |||||||||||
12,923,062 | 1,981,399 | 59,964,026 | 1,398,792 | |||||||||||
$ | 706,524,983 | $ | 76,101,712 | $ | 444,783,981 | $ | 287,778,962 | |||||||
$ | 581,695,854 | $ | 91,128,858 | $ | 449,649,501 | $ | 268,593,664 | |||||||
(1,336,870 | ) | (75,964 | ) | (1,758,277 | ) | 387,738 | ||||||||
59,376,133 | (9,550,103 | ) | (2,187,379 | ) | 51,850,020 | |||||||||
66,789,866 | (5,401,079 | ) | (919,864 | ) | (33,052,460 | ) | ||||||||
$ | 706,524,983 | $ | 76,101,712 | $ | 444,783,981 | $ | 287,778,962 | |||||||
$ | 4,357,766 | $ | 1,801,193 | $ | 36,355,903 | $ | — | |||||||
$ | — | $ | 26,913 | $ | — | $ | (8 | ) |
31 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Flexible | Touchstone | Growth | International | |||||||||||||
Income | Focused | Opportunities | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 33,646,731 | $ | 330,113,714 | $ | 41,222,793 | $ | 3,924,981 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 3,209,945 | 9,375,868 | 1,395,256 | 520,618 | ||||||||||||
Net asset value price per share* | $ | 10.48 | $ | 35.21 | $ | 29.54 | $ | 7.54 | ||||||||
Maximum sales charge - Class A shares | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share - Class A shares | $ | 11.12 | $ | 37.36 | $ | 31.34 | $ | 8.00 | ||||||||
Pricing of Class B Shares | ||||||||||||||||
Net assets applicable to Class B shares | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | — | — | — | ||||||||||||
Net asset value, offering price per share** | $ | — | $ | — | $ | — | $ | — | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 31,346,021 | $ | 15,406,526 | $ | 11,996,203 | $ | 142,605 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 3,028,890 | 449,378 | 463,463 | 20,538 | ||||||||||||
Net asset value, offering price per share** | $ | 10.35 | $ | 34.28 | $ | 25.88 | $ | 6.94 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 259,468,730 | $ | 706,362,809 | $ | 90,563,755 | $ | 5,371,538 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 24,687,094 | 19,731,867 | 3,014,523 | 711,670 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.51 | $ | 35.80 | $ | 30.04 | $ | 7.55 | ||||||||
Pricing of Institutional Class Shares | ||||||||||||||||
Net assets applicable to Institutional Class Shares | $ | 42,317,388 | $ | 52,620,570 | $ | 126,244,939 | $ | 92,760,410 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 4,027,944 | 1,463,010 | 4,170,024 | 12,263,562 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.51 | $ | 35.97 | $ | 30.27 | $ | 7.56 |
* 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 if redeemed within a one-year period from the date of purchase.
** Redemption price per share varies by length of time shares are held.
See accompanying Notes to Financial Statements.
32 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | ||||||||||||||
Touchstone | Sands Capital | Touchstone | ||||||||||||
Mid Cap | Emerging | Touchstone | Sustainability | |||||||||||
Growth | Markets | Small Cap | and Impact | |||||||||||
Fund | Growth Fund | Growth Fund | Equity Fund | |||||||||||
$ | 220,497,155 | $ | — | $ | 36,526,756 | $ | 147,867,993 | |||||||
9,208,034 | — | 7,001,417 | 8,173,533 | |||||||||||
$ | 23.95 | $ | — | $ | 5.22 | $ | 18.09 | |||||||
5.75 | % | — | 5.75 | % | 5.75 | % | ||||||||
$ | 25.41 | $ | — | $ | 5.54 | $ | 19.19 | |||||||
$ | 1,782,334 | $ | — | $ | — | $ | 1,020,870 | |||||||
99,546 | — | — | 63,360 | |||||||||||
$ | 17.90 | $ | — | $ | — | $ | 16.11 | |||||||
$ | 134,019,860 | $ | — | $ | 17,593,513 | $ | 64,563,173 | |||||||
7,684,532 | — | 4,034,208 | 4,097,459 | |||||||||||
$ | 17.44 | $ | — | $ | 4.36 | $ | 15.76 | |||||||
$ | 264,166,004 | $ | 41,766,531 | $ | 363,003,654 | $ | 71,634,169 | |||||||
10,758,999 | 4,750,578 | 62,578,014 | 3,860,453 | |||||||||||
$ | 24.55 | $ | 8.79 | $ | 5.80 | $ | 18.56 | |||||||
$ | 86,059,630 | $ | 34,335,181 | $ | 27,660,058 | $ | 2,692,757 | |||||||
3,484,688 | 3,906,526 | 4,744,175 | 145,111 | |||||||||||
$ | 24.70 | $ | 8.79 | $ | 5.83 | $ | 18.56 |
33 |
For the Six Months Ended September 30, 2015 (Unaudited)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Flexible | Touchstone | Growth | International | |||||||||||||
Income | Focused | Opportunities | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income (loss) | ||||||||||||||||
Dividends from affiliated funds | $ | 318 | $ | 449 | $ | 178 | $ | 43 | ||||||||
Dividends from non-affiliated securities(A) | 2,965,399 | 8,528,049 | 1,397,866 | 2,308,353 | ||||||||||||
Interest | 5,411,203 | — | — | — | ||||||||||||
Income from securities loaned | 4,642 | 30,468 | 8,731 | 55,270 | ||||||||||||
Total Investment Income | 8,381,562 | 8,558,966 | 1,406,775 | 2,363,666 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 1,227,537 | 3,598,258 | 1,135,250 | 567,455 | ||||||||||||
Administration fees | 254,276 | 833,329 | 219,482 | 82,281 | ||||||||||||
Compliance fees and expenses | 1,175 | 1,175 | 1,175 | 1,175 | ||||||||||||
Custody fees | 25,703 | 10,237 | 5,268 | 18,824 | ||||||||||||
Professional fees | 17,067 | 27,028 | 14,395 | 17,002 | ||||||||||||
Transfer Agent fees, Class A | 16,837 | 344,214 | 33,557 | 6,545 | ||||||||||||
Transfer Agent fees, Class B | — | — | — | — | ||||||||||||
Transfer Agent fees, Class C | 12,259 | 4,550 | 7,967 | 274 | ||||||||||||
Transfer Agent fees, Class Y | 164,863 | 405,246 | 46,277 | 24,774 | ||||||||||||
Transfer Agent fees, Institutional Class | 1,918 | 5,168 | 15,705 | 79 | ||||||||||||
Registration fees, Class A | 8,167 | 13,199 | 6,268 | 3,642 | ||||||||||||
Registration fees, Class B | — | — | — | — | ||||||||||||
Registration fees, Class C | 5,764 | 2,853 | 4,561 | 2,515 | ||||||||||||
Registration fees, Class Y | 6,984 | 9,528 | 7,350 | 2,185 | ||||||||||||
Registration fees, Institutional Class | 4,243 | 7,150 | 5,194 | 1,593 | ||||||||||||
Reports to Shareholders, Class A | 4,693 | 19,381 | 6,152 | 4,340 | ||||||||||||
Reports to Shareholders, Class B | — | — | — | — | ||||||||||||
Reports to Shareholders, Class C | 4,591 | 3,988 | 4,260 | 3,618 | ||||||||||||
Reports to Shareholders, Class Y | 5,120 | 34,693 | 4,525 | 3,656 | ||||||||||||
Reports to Shareholders, Institutional Class | 3,612 | 3,674 | 3,944 | 7,588 | ||||||||||||
Distribution expenses, Class A | 41,360 | 404,855 | 59,165 | 6,131 | ||||||||||||
Distribution expenses, Class B | — | — | — | — | ||||||||||||
Distribution and shareholder servicing expenses, Class C | 144,209 | 56,355 | 68,538 | 1,037 | ||||||||||||
Trustee fees | 6,775 | 6,775 | 6,775 | 6,775 | ||||||||||||
Other expenses | 36,261 | 311,307 | 25,279 | 18,033 | ||||||||||||
Total Expenses | 1,993,414 | 6,102,963 | 1,681,087 | 779,522 | ||||||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (354,791 | ) | (302,995 | ) | (122,099 | ) | (200,054 | ) | ||||||||
Fees eligible for recoupment by the Advisor(B) | — | — | — | — | ||||||||||||
Net Expenses | 1,638,623 | 5,799,968 | 1,558,988 | 579,468 | ||||||||||||
Net Investment Income (Loss) | 6,742,939 | 2,758,998 | (152,213 | ) | 1,784,198 | |||||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||||||
Net realized gains (losses) on investments from non-affiliated securities | (2,057,664 | ) | 12,709,373 | 12,857,230 | 1,029,128 | |||||||||||
Net realized losses on futures contracts | (422,845 | ) | — | — | — | |||||||||||
Net realized gains on written options | 51,463 | — | — | — | ||||||||||||
Net realized losses on swap agreements | (6,098 | ) | — | — | — | |||||||||||
Net realized gains (losses) on foreign currency transactions | 1,642,592 | — | — | (45,709 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | (7,307,823 | ) | (77,248,747 | ) | (46,828,094 | ) | (14,249,133 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on futures contracts | 627,033 | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on swap agreements | 22,487 | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | 1,335,346 | — | — | 2,402 | ||||||||||||
Net Realized and Unrealized Gains (Losses) on Investments | (6,115,509 | ) | (64,539,374 | ) | (33,970,864 | ) | (13,263,312 | ) | ||||||||
Change in Net Assets Resulting from Operations | $ | 627,430 | $ | (61,780,376 | ) | $ | (34,123,077 | ) | $ | (11,479,114 | ) | |||||
(A) Net of foreign tax withholding of: | $ | 143 | $ | 68,029 | $ | 18,301 | $ | 220,878 |
(B)See Note 4 in Notes to Financial Statements.
See accompanying Notes to Financial Statements.
34 |
Statements of Operations (Unaudited) (Continued)
Touchstone | ||||||||||||||
Touchstone | Sands Capital | Touchstone | ||||||||||||
Mid Cap | Emerging | Touchstone | Sustainability | |||||||||||
Growth | Markets | Small Cap | and Impact | |||||||||||
Fund | Growth Fund | Growth Fund | Equity Fund | |||||||||||
$ | 341 | $ | 87 | $ | 378 | $ | 354 | |||||||
3,925,897 | 509,210 | 709,051 | 3,206,407 | |||||||||||
— | — | — | — | |||||||||||
5,708 | 2,896 | 230,827 | 321 | |||||||||||
3,931,946 | 512,193 | 940,256 | 3,207,082 | |||||||||||
2,935,428 | 437,696 | 2,152,173 | 1,574,291 | |||||||||||
582,160 | 55,188 | 317,042 | 315,746 | |||||||||||
1,175 | 1,175 | 1,175 | 1,175 | |||||||||||
9,645 | 27,626 | 9,549 | 14,317 | |||||||||||
22,529 | 17,428 | 15,789 | 34,857 | |||||||||||
178,516 | — | 24,798 | 142,113 | |||||||||||
3,828 | — | — | 2,064 | |||||||||||
95,953 | — | 8,851 | 50,970 | |||||||||||
184,636 | 11,727 | 159,406 | 134,430 | |||||||||||
8,411 | 1,853 | 521 | 896 | |||||||||||
7,095 | — | 8,656 | 11,706 | |||||||||||
2,760 | — | — | 5,171 | |||||||||||
7,133 | — | 5,801 | 7,799 | |||||||||||
10,310 | 10,518 | 50,534 | 9,951 | |||||||||||
8,235 | 8,201 | 1,921 | 1,919 | |||||||||||
16,887 | — | 5,823 | 30,329 | |||||||||||
3,933 | — | — | 4,755 | |||||||||||
13,429 | — | 4,331 | 13,770 | |||||||||||
19,860 | 6,343 | 5,434 | 37,581 | |||||||||||
3,809 | 5,617 | 3,723 | 3,370 | |||||||||||
321,808 | — | 46,122 | 244,621 | |||||||||||
3,838 | — | — | 2,549 | |||||||||||
759,720 | — | 82,180 | 409,455 | |||||||||||
6,775 | 6,775 | 6,775 | 6,775 | |||||||||||
61,332 | 8,129 | 14,832 | 73,889 | |||||||||||
5,269,205 | 598,276 | 2,925,436 | 3,134,499 | |||||||||||
(389 | ) | (47,848 | ) | (264,870 | ) | (315,155 | ) | |||||||
— | — | 37,967 | — | |||||||||||
5,268,816 | 550,428 | 2,698,533 | 2,819,344 | |||||||||||
(1,336,870 | ) | (38,235 | ) | (1,758,277 | ) | 387,738 | ||||||||
32,104,944 | (2,380,234 | ) | (5,196,855 | ) | 202,801,119 | |||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | (4,044 | ) | — | (92,988 | ) | |||||||||
(123,360,240 | ) | (10,309,853 | ) | (35,292,418 | ) | (249,500,164 | ) | |||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | 731 | — | (842 | ) | ||||||||||
(91,255,296 | ) | (12,693,400 | ) | (40,489,273 | ) | (46,792,875 | ) | |||||||
$ | (92,592,166 | ) | $ | (12,731,635 | ) | $ | (42,247,550 | ) | $ | (46,405,137 | ) | |||
$ | 22,410 | $ | 31,387 | $ | 13,075 | $ | 159,329 |
35 |
Statements of Changes in Net Assets
Touchstone | ||||||||
Flexible Income Fund | ||||||||
For the | ||||||||
Six Months | ||||||||
Ended | ||||||||
September 30, | For the | |||||||
2015 | Year Ended | |||||||
(Unaudited) | March 31, 2015 | |||||||
From Operations | ||||||||
Net investment income (loss) | $ | 6,742,939 | $ | 11,657,624 | ||||
Net realized gains (losses) on investments, futures contracts, written options, swap agreements, foreign currency transactions and capital gain distributions received | (792,552 | ) | 2,518,007 | |||||
Net change in unrealized appreciation (depreciation) on investments, futures contracts, swap agreements and foreign currency transactions | (5,322,957 | ) | 846,788 | |||||
Change in Net Assets from Operations | 627,430 | 15,022,419 | ||||||
Distributions to Shareholders from: | ||||||||
Net investment income, Class A | (612,220 | ) | (1,186,826 | ) | ||||
Net investment income, Class C | (441,703 | ) | (852,702 | ) | ||||
Net investment income, Class Y | (4,923,445 | ) | (8,991,916 | ) | ||||
Net investment income, Institutional Class | (780,219 | ) | (1,984,856 | ) | ||||
Net realized gains, Class A | — | — | ||||||
Net realized gains, Class C | — | — | ||||||
Net realized gains, Class Y | — | — | ||||||
Net realized gains, Institutional Class | — | — | ||||||
Total Distributions | (6,757,587 | ) | (13,016,300 | ) | ||||
Net Increase (Decrease) from Share Transactions (A) | 31,548,959 | 99,369,792 | ||||||
Total Increase (Decrease) in Net Assets | 25,418,802 | 101,375,911 | ||||||
Net Assets | ||||||||
Beginning of period | 341,360,068 | 239,984,157 | ||||||
End of period | $ | 366,778,870 | $ | 341,360,068 | ||||
Accumulated Net Investment Income (Loss) | $ | 176,836 | $ | 191,484 |
(A) For details on share transaction by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 40 to 42.
See accompanying Notes to Financial Statements.
36 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Focused Fund | Growth Opportunities Fund | International Value Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | Six Months | Six Months | ||||||||||||||||||||
Ended | Ended | Ended | ||||||||||||||||||||
September 30, | For the | September 30, | For the | September 30, | For the | |||||||||||||||||
2015 | Year Ended | 2015 | Year Ended | 2015 | Year Ended | |||||||||||||||||
(Unaudited) | March 31, 2015 | (Unaudited) | March 31, 2015 | (Unaudited) | March 31, 2015 | |||||||||||||||||
$ | 2,758,998 | $ | 8,434,858 | $ | (152,213 | ) | $ | (674,540 | ) | $ | 1,784,198 | $ | 2,690,286 | |||||||||
12,709,373 | 91,238,577 | 12,857,230 | 34,721,011 | 983,419 | 5,215,929 | |||||||||||||||||
(77,248,747 | ) | (25,277,992 | ) | (46,828,094 | ) | 6,533,250 | (14,246,731 | ) | (13,187,468 | ) | ||||||||||||
(61,780,376 | ) | 74,395,443 | (34,123,077 | ) | 40,579,721 | (11,479,114 | ) | (5,281,253 | ) | |||||||||||||
— | (941,516 | ) | — | — | — | (180,686 | ) | |||||||||||||||
— | (25,942 | ) | — | — | — | (6,039 | ) | |||||||||||||||
— | (3,155,003 | ) | — | (36,931 | ) | — | (1,189,716 | ) | ||||||||||||||
— | (262,423 | ) | — | (97,196 | ) | — | (2,410,749 | ) | ||||||||||||||
— | — | — | (5,356,411 | ) | — | — | ||||||||||||||||
— | — | — | (1,589,389 | ) | — | — | ||||||||||||||||
— | — | — | (11,420,388 | ) | — | — | ||||||||||||||||
— | — | — | (13,871,626 | ) | — | — | ||||||||||||||||
— | (4,384,884 | ) | — | (32,371,941 | ) | — | (3,787,190 | ) | ||||||||||||||
51,251,248 | 39,085,885 | (913,610 | ) | 28,975,532 | 450,446 | (11,372,032 | ) | |||||||||||||||
(10,529,128 | ) | 109,096,444 | (35,036,687 | ) | 37,183,312 | (11,028,668 | ) | (20,440,475 | ) | |||||||||||||
1,115,032,747 | 1,005,936,303 | 305,064,377 | 267,881,065 | 113,228,202 | 133,668,677 | |||||||||||||||||
$ | 1,104,503,619 | $ | 1,115,032,747 | $ | 270,027,690 | $ | 305,064,377 | $ | 102,199,534 | $ | 113,228,202 | |||||||||||
$ | 11,193,856 | $ | 8,434,858 | $ | (195,431 | ) | $ | (43,218 | ) | $ | 4,570,301 | $ | 2,786,103 |
37 |
Statements of Changes in Net Assets (Continued)
Touchstone | ||||||||
Mid Cap | ||||||||
Growth Fund | ||||||||
For the | ||||||||
Six Months | ||||||||
Ended | ||||||||
September 30, | For the | |||||||
2015 | Year Ended | |||||||
(Unaudited) | March 31, 2015 | |||||||
From Operations | ||||||||
Net investment income (loss) | $ | (1,336,870 | ) | $ | (4,344,388 | ) | ||
Net realized gains (losses) on investments and foreign currency transactions | 32,104,944 | 80,961,938 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | (123,360,240 | ) | 39,284,609 | |||||
Change in Net Assets from Operations | (92,592,166 | ) | 115,902,159 | |||||
Distributions to Shareholders from: | ||||||||
Net investment income, Class A | — | — | ||||||
Net investment income, Class Y | — | — | ||||||
Net investment income, Institutional Class | — | — | ||||||
Net realized gains, Class A | — | (29,865,535 | ) | |||||
Net realized gains, Class B | — | (509,754 | ) | |||||
Net realized gains, Class C | — | (24,200,128 | ) | |||||
Net realized gains, Class Y | — | (38,685,139 | ) | |||||
Net realized gains, Institutional Class | — | (6,272,879 | ) | |||||
Total Distributions | — | (99,533,435 | ) | |||||
Net Increase (Decrease) from Share Transactions(B) | (30,079,886 | ) | 51,202,285 | |||||
Total Increase (Decrease) in Net Assets | (122,672,052 | ) | 67,571,009 | |||||
Net Assets | ||||||||
Beginning of period | 829,197,035 | 761,626,026 | ||||||
End of period | $ | 706,524,983 | $ | 829,197,035 | ||||
Accumulated Net Investment Income (Loss) | $ | (1,336,870 | ) | $ | — |
(A) Represents the period from commencement of operations (May 12, 2014) through March 31, 2015.
(B) For details on share transaction by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 43 to 45.
See accompanying Notes to Financial Statements.
38 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Sands Capital Emerging | Small Cap | Sustainability and Impact | ||||||||||||||||||||
Markets Growth Fund | Growth Fund | Equity Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | Six Months | Six Months | ||||||||||||||||||||
Ended | For the | Ended | Ended | |||||||||||||||||||
September 30, | Period Ended | September 30, | For the | September 30, | For the | |||||||||||||||||
2015 | March 31, | 2015 | Year Ended | 2015 | Year Ended | |||||||||||||||||
(Unaudited) | 2015(A) | (Unaudited) | March 31, 2015 | (Unaudited) | March 31, 2015 | |||||||||||||||||
$ | (38,235 | ) | $ | (238,719 | ) | $ | (1,758,277 | ) | $ | (990,511 | ) | $ | 387,738 | $ | 3,449,054 | |||||||
(2,384,278 | ) | (6,996,731 | ) | (5,196,855 | ) | 9,263,865 | 202,708,131 | 138,413,617 | ||||||||||||||
(10,309,122 | ) | 4,908,043 | (35,292,418 | ) | 24,011,741 | (249,501,006 | ) | (6,842,007 | ) | |||||||||||||
(12,731,635 | ) | (2,327,407 | ) | (42,247,550 | ) | 32,285,095 | (46,405,137 | ) | 135,020,664 | |||||||||||||
— | — | — | — | (227,036 | ) | (480,900 | ) | |||||||||||||||
— | — | — | — | (333,095 | ) | (1,346,092 | ) | |||||||||||||||
— | — | — | — | (4 | ) | — | ||||||||||||||||
— | — | — | (609,635 | ) | (71,291,821 | ) | (46,799,076 | ) | ||||||||||||||
— | — | — | — | (566,514 | ) | (337,045 | ) | |||||||||||||||
— | — | — | (256,827 | ) | (32,073,112 | ) | (19,910,700 | ) | ||||||||||||||
— | — | — | (4,260,535 | ) | (66,294,607 | ) | (63,673,005 | ) | ||||||||||||||
— | — | — | (229,689 | ) | (797 | ) | — | |||||||||||||||
— | — | — | (5,356,686 | ) | (170,786,986 | ) | (132,546,818 | ) | ||||||||||||||
16,549,100 | 74,611,654 | 114,016,304 | 253,953,941 | (274,626,587 | ) | (203,698,867 | ) | |||||||||||||||
3,817,465 | 72,284,247 | 71,768,754 | 280,882,350 | (491,818,710 | ) | (201,225,021 | ) | |||||||||||||||
72,284,247 | — | 373,015,227 | 92,132,877 | 779,597,672 | 980,822,693 | |||||||||||||||||
$ | 76,101,712 | $ | 72,284,247 | $ | 444,783,981 | $ | 373,015,227 | $ | 287,778,962 | $ | 779,597,672 | |||||||||||
$ | (75,964 | ) | $ | (37,729 | ) | $ | (1,758,277 | ) | $ | — | $ | 387,738 | $ | 560,135 |
39 |
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone Flexible Income Fund | ||||||||||||||||
For the Six Months Ended | For the Year | |||||||||||||||
September 30, 2015 | Ended | |||||||||||||||
(Unaudited) | March 31, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 954,014 | $ | 10,052,423 | 1,568,107 | $ | 16,647,089 | ||||||||||
Reinvestment of distributions | 48,357 | 507,083 | 91,957 | 977,939 | ||||||||||||
Cost of Shares redeemed | (857,132 | ) | (9,007,488 | ) | (1,041,961 | ) | (11,102,406 | ) | ||||||||
Change from Class A Share Transactions | 145,239 | 1,552,018 | 618,103 | 6,522,622 | ||||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 824,310 | 8,591,371 | 1,009,134 | 10,610,844 | ||||||||||||
Reinvestment of distributions | 33,765 | 348,829 | 61,208 | 642,259 | ||||||||||||
Cost of Shares redeemed | (282,933 | ) | (2,936,850 | ) | (625,702 | ) | (6,573,211 | ) | ||||||||
Change from Class C Share Transactions | 575,142 | 6,003,350 | 444,640 | 4,679,892 | ||||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 5,138,754 | 54,296,512 | 12,611,049 | 134,491,445 | ||||||||||||
Reinvestment of distributions | 161,817 | 1,701,968 | 299,733 | 3,195,742 | ||||||||||||
Cost of Shares redeemed | (2,872,981 | ) | (30,289,505 | ) | (4,925,847 | ) | (52,581,170 | ) | ||||||||
Change from Class Y Share Transactions | 2,427,590 | 25,708,975 | 7,984,935 | 85,106,017 | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 1,203,132 | 12,651,535 | 2,370,726 | 25,298,460 | ||||||||||||
Reinvestment of distributions | 39,601 | 417,459 | 146,325 | 1,558,506 | ||||||||||||
Cost of Shares redeemed | (1,398,549 | ) | (14,784,378 | ) | (2,228,208 | ) | (23,795,705 | ) | ||||||||
Change from Institutional Class Share Transactions | (155,816 | ) | (1,715,384 | ) | 288,843 | 3,061,261 | ||||||||||
Change from Share Transactions | 2,992,155 | $ | 31,548,959 | 9,336,521 | $ | 99,369,792 |
See accompanying Notes to Financial Statements.
40 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Focused Fund | Touchstone Growth Opportunities Fund | |||||||||||||||||||||||||||||
For the Six Months Ended | For the Year | For the Six Months Ended | For the Year | |||||||||||||||||||||||||||
September 30, 2015 | Ended | September 30, 2015 | Ended | |||||||||||||||||||||||||||
(Unaudited) | March 31, 2015 | (Unaudited) | March 31, 2015 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
2,035,371 | $ | 77,551,468 | 3,152,316 | $ | 112,384,035 | 41,118 | $ | 1,365,876 | 84,413 | $ | 2,845,518 | |||||||||||||||||||
— | — | 22,772 | 838,923 | — | — | 159,204 | 5,041,988 | |||||||||||||||||||||||
(647,163 | ) | (24,391,472 | ) | (1,893,895 | ) | (67,449,289 | ) | (122,707 | ) | (4,022,400 | ) | (225,176 | ) | (7,572,967 | ) | |||||||||||||||
1,388,208 | 53,159,996 | 1,281,193 | 45,773,669 | (81,589 | ) | (2,656,524 | ) | 18,441 | 314,539 | |||||||||||||||||||||
215,301 | 7,797,870 | 135,463 | 4,710,743 | 28,868 | 837,254 | 74,380 | 2,139,654 | |||||||||||||||||||||||
— | — | 511 | 18,421 | — | — | 45,058 | 1,257,568 | |||||||||||||||||||||||
(30,526 | ) | (1,122,014 | ) | (35,330 | ) | (1,248,168 | ) | (37,262 | ) | (1,064,986 | ) | (73,809 | ) | (2,181,241 | ) | |||||||||||||||
184,775 | 6,675,856 | 100,644 | 3,480,996 | (8,394 | ) | (227,732 | ) | 45,629 | 1,215,981 | |||||||||||||||||||||
804,730 | 30,770,159 | 1,684,633 | 60,620,741 | 284,996 | 9,535,292 | 736,523 | 24,823,240 | |||||||||||||||||||||||
— | — | 80,766 | 3,019,030 | — | — | 336,781 | 10,828,282 | |||||||||||||||||||||||
(1,107,619 | ) | (43,009,791 | ) | (2,556,883 | ) | (92,606,372 | ) | (444,147 | ) | (14,666,946 | ) | (691,848 | ) | (23,251,906 | ) | |||||||||||||||
(302,889 | ) | (12,239,632 | ) | (791,484 | ) | (28,966,601 | ) | (159,151 | ) | (5,131,654 | ) | 381,456 | 12,399,616 | |||||||||||||||||
162,309 | 6,182,080 | 683,501 | 25,263,165 | 581,564 | 19,622,344 | 463,974 | 15,743,329 | |||||||||||||||||||||||
— | — | 6,994 | 262,423 | — | — | 431,068 | 13,964,383 | |||||||||||||||||||||||
(64,647 | ) | (2,527,052 | ) | (183,374 | ) | (6,727,767 | ) | (369,973 | ) | (12,520,044 | ) | (425,828 | ) | (14,662,316 | ) | |||||||||||||||
97,662 | 3,655,028 | 507,121 | 18,797,821 | 211,591 | 7,102,300 | 469,214 | 15,045,396 | |||||||||||||||||||||||
1,367,756 | $ | 51,251,248 | 1,097,474 | $ | 39,085,885 | (37,543 | ) | $ | (913,610 | ) | 914,740 | $ | 28,975,532 |
41 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone International Value Fund | ||||||||||||||||
For the Six Months Ended | For the Year | |||||||||||||||
September 30, 2015 | Ended | |||||||||||||||
(Unaudited) | March 31, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 26,600 | $ | 228,225 | 242,961 | $ | 2,225,707 | ||||||||||
Reinvestment of distributions | — | — | 15,281 | 129,122 | ||||||||||||
Cost of Shares redeemed | (134,044 | ) | (1,140,672 | ) | (291,385 | ) | (2,557,979 | ) | ||||||||
Change from Class A Share Transactions | (107,444 | ) | (912,447 | ) | (33,143 | ) | (203,150 | ) | ||||||||
Class B | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change from Class B Share Transactions | — | — | — | — | ||||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 271 | 2,187 | 6,400 | 53,197 | ||||||||||||
Reinvestment of distributions | — | — | 495 | 3,872 | ||||||||||||
Cost of Shares redeemed | (9,682 | ) | (76,070 | ) | (2,416 | ) | (19,123 | ) | ||||||||
Change from Class C Share Transactions | (9,411 | ) | (73,883 | ) | 4,479 | 37,946 | ||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 24,455 | 191,357 | 130,791 | 1,181,538 | ||||||||||||
Reinvestment of distributions | — | — | 122,049 | 1,030,093 | ||||||||||||
Cost of Shares redeemed | (3,489,100 | ) | (30,196,472 | ) | (874,635 | ) | (8,042,647 | ) | ||||||||
Change from Class Y Share Transactions | (3,464,645 | ) | (30,005,115 | ) | (621,795 | ) | (5,831,016 | ) | ||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 4,321,587 | 37,335,635 | 963,317 | 8,463,575 | ||||||||||||
Reinvestment of distributions | — | — | 285,296 | 2,410,749 | ||||||||||||
Cost of Shares redeemed | (683,356 | ) | (5,893,744 | ) | (1,776,767 | ) | (16,250,136 | ) | ||||||||
Change from Institutional Class Share Transactions | 3,638,231 | 31,441,891 | (528,154 | ) | (5,375,812 | ) | ||||||||||
Change from Share Transactions | 56,731 | $ | 450,446 | (1,178,613 | ) | $ | (11,372,032 | ) |
(A)Represents the period from commencement of operations (May 12, 2014) through March 31, 2015.
See accompanying Notes to Financial Statements.
42 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Mid Cap Growth Fund | Touchstone Sands Capital Emerging Markets Growth Fund | |||||||||||||||||||||||||||||
For the Six Months Ended | For the Year | For the Six Months Ended | For the Period | |||||||||||||||||||||||||||
September 30, 2015 | Ended | September 30, 2015 | Ended | |||||||||||||||||||||||||||
(Unaudited) | March 31, 2015 | (Unaudited) | March 31, 2015(A) | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
786,981 | $ | 20,886,760 | 1,872,551 | $ | 50,007,609 | — | $ | — | — | $ | — | |||||||||||||||||||
— | — | 1,125,039 | 28,080,973 | — | — | — | — | |||||||||||||||||||||||
(1,462,425 | ) | (38,834,374 | ) | (4,747,824 | ) | (126,313,308 | ) | — | — | — | — | |||||||||||||||||||
(675,444 | ) | (17,947,614 | ) | (1,750,234 | ) | (48,224,726 | ) | — | — | — | — | |||||||||||||||||||
838 | 16,798 | 6,130 | 115,182 | — | — | — | — | |||||||||||||||||||||||
— | — | 19,952 | 374,893 | — | — | — | — | |||||||||||||||||||||||
(38,791 | ) | (779,853 | ) | (114,764 | ) | (2,371,823 | ) | — | — | — | — | |||||||||||||||||||
(37,953 | ) | (763,055 | ) | (88,682 | ) | (1,881,748 | ) | — | — | — | — | |||||||||||||||||||
190,914 | 3,730,843 | 671,140 | 13,050,963 | — | — | — | — | |||||||||||||||||||||||
— | — | 986,965 | 18,051,587 | — | — | — | — | |||||||||||||||||||||||
(459,968 | ) | (8,960,351 | ) | (1,056,855 | ) | (21,171,479 | ) | — | — | — | — | |||||||||||||||||||
(269,054 | ) | (5,229,508 | ) | 601,250 | 9,931,071 | — | — | — | — | |||||||||||||||||||||
1,092,813 | 29,725,350 | 4,222,004 | 115,570,817 | 1,789,040 | 17,254,055 | 5,569,835 | 58,995,354 | |||||||||||||||||||||||
— | — | 1,408,843 | 35,981,850 | — | — | — | — | |||||||||||||||||||||||
(1,134,791 | ) | (30,809,092 | ) | (4,593,111 | ) | (125,737,465 | ) | (850,626 | ) | (7,832,280 | ) | (1,757,671 | ) | (17,937,981 | ) | |||||||||||||||
(41,978 | ) | (1,083,742 | ) | 1,037,736 | 25,815,202 | 938,414 | 9,421,775 | 3,812,164 | 41,057,373 | |||||||||||||||||||||
519,073 | 14,147,543 | 3,919,787 | 107,458,384 | 1,389,337 | 13,102,757 | 6,670,345 | 69,211,323 | |||||||||||||||||||||||
— | — | 244,366 | 6,272,879 | — | — | — | — | |||||||||||||||||||||||
(711,364 | ) | (19,203,510 | ) | (1,782,352 | ) | (48,168,777 | ) | (639,673 | ) | (5,975,432 | ) | (3,513,483 | ) | (35,657,042 | ) | |||||||||||||||
(192,291 | ) | (5,055,967 | ) | 2,381,801 | 65,562,486 | 749,664 | 7,127,325 | 3,156,862 | 33,554,281 | |||||||||||||||||||||
(1,216,720 | ) | $ | (30,079,886 | ) | 2,181,871 | $ | 51,202,285 | 1,688,078 | $ | 16,549,100 | 6,969,026 | $ | 74,611,654 |
43 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Small Cap Growth Fund | ||||||||||||||||
For the Six Months Ended | For the Year | |||||||||||||||
September 30, 2015 | Ended | |||||||||||||||
(Unaudited) | March 31, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 1,881,186 | $ | 10,971,090 | 3,471,875 | $ | 18,298,115 | ||||||||||
Reinvestment of distributions | — | — | 99,703 | 516,460 | ||||||||||||
Cost of Shares redeemed | (847,078 | ) | (4,845,408 | ) | (4,346,943 | ) | (23,027,280 | ) | ||||||||
Change from Class A Share Transactions | 1,034,108 | 6,125,682 | (775,365 | ) | (4,212,705 | ) | ||||||||||
Class B | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change from Class B Share Transactions | — | — | — | — | ||||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 1,616,234 | 7,898,243 | 1,219,696 | 5,470,688 | ||||||||||||
Reinvestment of distributions | — | — | 42,376 | 184,335 | ||||||||||||
Cost of Shares redeemed | (227,992 | ) | (1,086,489 | ) | (286,977 | ) | (1,275,972 | ) | ||||||||
Change from Class C Share Transactions | 1,388,242 | 6,811,754 | 975,095 | 4,379,051 | ||||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 25,736,480 | 164,797,221 | 48,212,803 | 284,235,179 | ||||||||||||
Reinvestment of distributions | — | — | 475,858 | 2,731,426 | ||||||||||||
Cost of Shares redeemed | (12,801,147 | ) | (82,057,548 | ) | (5,449,256 | ) | (32,054,575 | ) | ||||||||
Change from Class Y Share Transactions | 12,935,333 | 82,739,673 | 43,239,405 | 254,912,030 | ||||||||||||
Institutional Class(A) | ||||||||||||||||
Proceeds from Shares issued | 3,160,272 | 20,626,124 | 498,835 | 3,036,246 | ||||||||||||
Reinvestment of distributions | — | — | 37,058 | 213,452 | ||||||||||||
Cost of Shares redeemed | (349,399 | ) | (2,286,929 | ) | (735,591 | ) | (4,374,133 | ) | ||||||||
Change from Institutional Class Share Transactions | 2,810,873 | 18,339,195 | (199,698 | ) | (1,124,435 | ) | ||||||||||
Change from Share Transactions | 18,168,556 | $ | 114,016,304 | 43,239,437 | $ | 253,953,941 |
(A)Touchstone Sustainability and Impact Equity Fund began issuing Institutional Class shares on May 4, 2015.
See accompanying Notes to Financial Statements.
44 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Sustainability and Impact Equity Fund | ||||||||||||||
For the Six Months Ended | For the Year | |||||||||||||
September 30, 2015 | Ended | |||||||||||||
(Unaudited) | March 31, 2015 | |||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||
396,154 | $ | 9,014,418 | 1,212,442 | $ | 37,540,815 | |||||||||
3,095,277 | 63,666,766 | 1,455,219 | 41,686,465 | |||||||||||
(3,626,692 | ) | (86,859,846 | ) | (3,405,798 | ) | (106,608,779 | ) | |||||||
(135,261 | ) | (14,178,662 | ) | (738,137 | ) | (27,381,499 | ) | |||||||
8,520 | 156,498 | 3,086 | 82,059 | |||||||||||
19,366 | 355,753 | 8,288 | 220,385 | |||||||||||
(24,463 | ) | (470,443 | ) | (73,489 | ) | (2,212,439 | ) | |||||||
3,423 | 41,808 | (62,115 | ) | (1,909,995 | ) | |||||||||
641,988 | 11,671,952 | 366,203 | 10,074,312 | |||||||||||
1,146,660 | 20,605,480 | 509,331 | 13,349,581 | |||||||||||
(1,358,218 | ) | (29,076,014 | ) | (964,054 | ) | (27,689,759 | ) | |||||||
430,430 | 3,201,418 | (88,520 | ) | (4,265,866 | ) | |||||||||
967,364 | 21,814,504 | 2,356,443 | 74,338,638 | |||||||||||
2,799,042 | 59,003,816 | 2,061,399 | 60,113,790 | |||||||||||
(13,140,951 | ) | (347,500,772 | ) | (9,109,245 | ) | (304,593,935 | ) | |||||||
(9,374,545 | ) | (266,682,452 | ) | (4,691,403 | ) | (170,141,507 | ) | |||||||
145,073 | 2,990,500 | — | — | |||||||||||
38 | 801 | — | — | |||||||||||
— | — | — | — | |||||||||||
145,111 | 2,991,301 | — | — | |||||||||||
(8,930,842 | ) | $ | (274,626,587 | ) | (5,580,175 | ) | $ | (203,698,867 | ) |
45 |
Touchstone Flexible Income Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September 30, | March | |||||||||||||||||||||||||||
2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.67 | $ | 10.60 | $ | 10.94 | $ | 10.76 | $ | 10.47 | $ | 10.00 | $ | 8.93 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.19 | 0.43 | 0.51 | 0.35 | (B) | 0.49 | (C) | 0.52 | (C) | 0.51 | (C) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.19 | ) | 0.11 | (0.37 | ) | 0.16 | 0.31 | 0.44 | 1.26 | |||||||||||||||||||
Total from investment operations | — | 0.54 | 0.14 | 0.51 | 0.80 | 0.96 | 1.77 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.47 | ) | (0.48 | ) | (0.33 | ) | (0.51 | ) | (0.49 | ) | (0.70 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.48 | $ | 10.67 | $ | 10.60 | $ | 10.94 | $ | 10.76 | $ | 10.47 | $ | 10.00 | ||||||||||||||
Total return(D) | 0.05 | %(E) | 5.22 | % | 1.45 | % | 4.77 | %(E) | 7.86 | % | 9.90 | % | 20.27 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 33,647 | $ | 32,695 | $ | 25,928 | $ | 41,301 | $ | 49,458 | $ | 25,400 | $ | 19,461 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.09 | %(F) | 1.09 | % | 0.98 | % | 0.94 | %(F) | 0.95 | % | 1.02 | % | 1.12 | % | ||||||||||||||
Gross expenses | 1.32 | %(F) | 1.35 | % | 1.35 | % | 1.37 | %(F) | 1.60 | % | 1.61 | % | 1.65 | % | ||||||||||||||
Net investment income | 3.69 | %(F) | 3.95 | % | 4.82 | % | 4.76 | %(B)(F) | 4.65 | % | 4.99 | % | 5.27 | % | ||||||||||||||
Portfolio turnover rate | 50 | %(E) | 102 | % | 44 | % | 41 | %(E) | 47 | % | 42 | % | 31 | % |
Touchstone Flexible Income Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September 30, | March | |||||||||||||||||||||||||||
2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.54 | $ | 10.47 | $ | 10.82 | $ | 10.65 | $ | 10.36 | $ | 9.90 | $ | 8.85 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.16 | 0.34 | 0.43 | 0.29 | (B) | 0.40 | (C) | 0.44 | (C) | 0.43 | (C) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.19 | ) | 0.12 | (0.37 | ) | 0.15 | 0.32 | 0.44 | 1.25 | |||||||||||||||||||
Total from investment operations | (0.03 | ) | 0.46 | 0.06 | 0.44 | 0.72 | 0.88 | 1.68 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.16 | ) | (0.39 | ) | (0.41 | ) | (0.27 | ) | (0.43 | ) | (0.42 | ) | (0.63 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.35 | $ | 10.54 | $ | 10.47 | $ | 10.82 | $ | 10.65 | $ | 10.36 | $ | 9.90 | ||||||||||||||
Total return(D) | (0.31 | %)(E) | 4.52 | % | 0.61 | % | 4.20 | %(E) | 7.16 | % | 9.09 | % | 19.20 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 31,346 | $ | 25,853 | $ | 21,043 | $ | 26,087 | $ | 25,115 | $ | 16,818 | $ | 12,504 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.84 | %(F) | 1.84 | % | 1.74 | % | 1.69 | %(F) | 1.70 | % | 1.77 | % | 1.87 | % | ||||||||||||||
Gross expenses | 2.05 | %(F) | 2.10 | % | 2.09 | % | 2.16 | %(F) | 2.35 | % | 2.36 | % | 2.40 | % | ||||||||||||||
Net investment income | 2.94 | %(F) | 3.20 | % | 4.07 | % | 4.01 | %(B)(F) | 3.82 | % | 4.25 | % | 4.53 | % | ||||||||||||||
Portfolio turnover rate | 50 | %(E) | 102 | % | 44 | % | 41 | %(E) | 47 | % | 42 | % | 31 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A and Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
See accompanying Notes to Financial Statements.
46 |
Financial Highlights (Continued)
Touchstone Flexible Income Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September 30, | March | |||||||||||||||||||||||||||
2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A)(B) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.70 | $ | 10.62 | $ | 10.97 | $ | 10.79 | $ | 10.49 | $ | 10.02 | $ | 8.95 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.21 | 0.46 | 0.54 | 0.37 | (C) | 0.50 | (D) | 0.54 | (D) | 0.53 | (D) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.19 | ) | 0.12 | (0.38 | ) | 0.16 | 0.33 | 0.45 | 1.26 | |||||||||||||||||||
Total from investment operations | 0.02 | 0.58 | 0.16 | 0.53 | 0.83 | 0.99 | 1.79 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.50 | ) | (0.51 | ) | (0.35 | ) | (0.53 | ) | (0.52 | ) | (0.72 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.51 | $ | 10.70 | $ | 10.62 | $ | 10.97 | $ | 10.79 | $ | 10.49 | $ | 10.02 | ||||||||||||||
Total return | 0.17 | %(E) | 5.58 | % | 1.63 | % | 4.96 | %(E) | 8.21 | % | 10.15 | % | 20.39 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 259,469 | $ | 238,081 | $ | 151,652 | $ | 199,293 | $ | 200,325 | $ | 122,125 | $ | 80,807 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 0.84 | %(F) | 0.84 | % | 0.71 | % | 0.64 | %(F) | 0.70 | % | 0.77 | % | 0.87 | % | ||||||||||||||
Gross expenses | 1.04 | %(F) | 1.01 | % | 1.00 | % | 1.05 | %(F) | 1.35 | % | 1.36 | % | 1.40 | % | ||||||||||||||
Net investment income | 3.94 | %(F) | 4.21 | % | 5.10 | % | 5.06 | %(C)(F) | 4.80 | % | 5.22 | % | 5.51 | % | ||||||||||||||
Portfolio turnover rate | 50 | %(E) | 102 | % | 44 | % | 41 | %(E) | 47 | % | 42 | % | 31 | % |
Touchstone Flexible Income Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||
Six Months | Months | |||||||||||||||
Ended | Ended | |||||||||||||||
September 30, | March | |||||||||||||||
2015 | Year Ended March 31, | 31, | ||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(B)(G) | |||||||||||||
Net asset value at beginning of period | $ | 10.69 | $ | 10.62 | $ | 10.96 | $ | 10.86 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.21 | 0.46 | 0.54 | 0.30 | (C) | |||||||||||
Net realized and unrealized gains (losses) on investments | (0.18 | ) | 0.12 | (0.36 | ) | 0.12 | ||||||||||
Total from investment operations | 0.03 | 0.58 | 0.18 | 0.42 | ||||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.21 | ) | (0.51 | ) | (0.52 | ) | (0.32 | ) | ||||||||
Net asset value at end of period | $ | 10.51 | $ | 10.69 | $ | 10.62 | $ | 10.96 | ||||||||
Total return | 0.32 | %(E) | 5.58 | % | 1.81 | % | 3.93 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 42,317 | $ | 44,732 | $ | 41,361 | $ | 20,589 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.74 | %(F) | 0.74 | % | 0.65 | % | 0.59 | %(F) | ||||||||
Gross expenses | 0.94 | %(F) | 0.95 | % | 0.95 | % | 1.03 | %(F) | ||||||||
Net investment income | 4.04 | %(F) | 4.30 | % | 5.16 | % | 5.11 | %(C)(F) | ||||||||
Portfolio turnover rate | 50 | %(E) | 102 | % | 44 | % | 41 | %(E) |
(A) | Effective September 10, 2012, Institutional Class shares were renamed Class Y shares. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class Y and Institutional Class net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively. |
(D) | The net investment income per share is based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | The Fund began issuing Institutional Class shares on September 10, 2012. |
See accompanying Notes to Financial Statements.
47 |
Financial Highlights (Continued)
Touchstone Focused Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 37.19 | $ | 34.87 | $ | 27.55 | $ | 23.63 | $ | 21.92 | $ | 21.49 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(A) | 0.06 | 0.20 | 0.11 | 0.16 | 0.12 | 0.08 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.04 | ) | 2.23 | 7.46 | 3.79 | (B) | 1.67 | 1.66 | ||||||||||||||||
Total from investment operations | (1.98 | ) | 2.43 | 7.57 | 3.95 | 1.79 | 1.74 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.11 | ) | (0.25 | ) | (0.03 | ) | (0.24 | ) | (0.05 | ) | |||||||||||||
Realized capital gains | — | — | — | — | — | (1.26 | ) | |||||||||||||||||
Total distributions | — | (0.11 | ) | (0.25 | ) | (0.03 | ) | (0.24 | ) | (1.31 | ) | |||||||||||||
Capital Contribution | — | — | — | — | 0.16 | (C) | — | |||||||||||||||||
Net asset value at end of period | $ | 35.21 | $ | 37.19 | $ | 34.87 | $ | 27.55 | $ | 23.63 | $ | 21.92 | ||||||||||||
Total return(D) | (5.32 | %)(E) | 6.99 | % | 27.67 | % | 16.75 | %(B) | 9.08 | %(C) | 9.34 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 330,114 | $ | 297,072 | $ | 233,841 | $ | 8,497 | $ | 7,352 | $ | 12,226 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.20 | %(F) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Gross expenses | 1.32 | %(F) | 1.37 | % | 1.46 | % | 1.90 | % | 1.44 | % | 1.42 | % | ||||||||||||
Net investment income | 0.29 | %(F) | 0.57 | % | 0.35 | % | 0.66 | % | 0.58 | % | 0.40 | % | ||||||||||||
Portfolio turnover rate | 15 | %(E) | 33 | % | 27 | %(G) | 189 | % | 99 | % | 115 | % |
(A) | The net investment income per share is based on average shares outstanding for the period. |
(B) | Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.76%. |
(C) | Impact of one time distribution of settlement funds from the Bank of America Fair Fund. If the distribution had not occurred the total return would have been lower. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
48 |
Financial Highlights (Continued)
Touchstone Focused Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
September 30, | Period Ended | |||||||||||||||
2015 | Year Ended March 31, | March 31, | ||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | |||||||||||||
Net asset value at beginning of period | $ | 36.34 | $ | 34.32 | $ | 27.33 | $ | 22.61 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss(B) | (0.08 | ) | (0.06 | ) | (0.13 | ) | (0.02 | ) | ||||||||
Net realized and unrealized gains (losses) on investments | (1.98 | ) | 2.18 | 7.38 | 4.80 | (C) | ||||||||||
Total from investment operations | (2.06 | ) | 2.12 | 7.25 | 4.78 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | (0.10 | ) | (0.26 | ) | (0.06 | ) | |||||||||
Net asset value at end of period | $ | 34.28 | $ | 36.34 | $ | 34.32 | $ | 27.33 | ||||||||
Total return(D) | (5.67 | %)(E) | 6.18 | % | 26.72 | % | 21.19 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 15,407 | $ | 9,617 | $ | 5,626 | $ | 60 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.95 | %(F) | 1.95 | % | 1.95 | % | 1.95 | %(F) | ||||||||
Gross expenses | 2.04 | %(F) | 2.09 | % | 2.84 | % | 258.39 | %(F) | ||||||||
Net investment loss | (0.46 | %)(F) | (0.18 | %) | (0.40 | %) | (0.09 | %)(F) | ||||||||
Portfolio turnover rate | 15 | %(E) | 33 | % | 27 | %(G) | 189 | % |
(A) | Represents the period from commencement of operations (April 16, 2012) through March 31, 2013. |
(B) | The net investment loss per share is based on average shares outstanding for the period. |
(C) | Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.78%. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
49 |
Financial Highlights (Continued)
Touchstone Focused Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 37.76 | $ | 35.34 | $ | 27.86 | $ | 23.85 | $ | 22.17 | $ | 21.75 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(A) | 0.11 | 0.31 | 0.19 | 0.22 | 0.18 | 0.12 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.07 | ) | 2.26 | 7.54 | 3.84 | (B) | 1.66 | 1.71 | ||||||||||||||||
Total from investment operations | (1.96 | ) | 2.57 | 7.73 | 4.06 | 1.84 | 1.83 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.15 | ) | (0.25 | ) | (0.05 | ) | (0.32 | ) | (0.15 | ) | |||||||||||||
Realized capital gains | — | — | — | — | — | (1.26 | ) | |||||||||||||||||
Total distributions | — | (0.15 | ) | (0.25 | ) | (0.05 | ) | (0.32 | ) | (1.41 | ) | |||||||||||||
Capital Contribution | — | — | — | — | 0.16 | (C) | — | |||||||||||||||||
Net asset value at end of period | $ | 35.80 | $ | 37.76 | $ | 35.34 | $ | 27.86 | $ | 23.85 | $ | 22.17 | ||||||||||||
Total return | (5.19 | %)(D) | 7.29 | % | 27.95 | % | 17.07 | %(B) | 9.29 | %(C) | 9.71 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 706,363 | $ | 756,579 | $ | 736,023 | $ | 578,006 | $ | 555,142 | $ | 595,397 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.93 | %(E) | 0.92 | % | 0.94 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Gross expenses | 0.95 | %(E) | 0.97 | % | 1.02 | % | 1.05 | % | 1.28 | % | 1.32 | % | ||||||||||||
Net investment income | 0.56 | %(E) | 0.85 | % | 0.61 | % | 0.91 | % | 0.85 | % | 0.60 | % | ||||||||||||
Portfolio turnover rate | 15 | %(D) | 33 | % | 27 | %(F) | 189 | % | 99 | % | 115 | % |
(A) | The net investment income per share is based on average shares outstanding for the period. |
(B) | Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.76%. |
(C) | Impact of one time distribution of settlement funds from the Bank of America Fair Fund. If the distribution had not occurred the total return would have been lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
50 |
Financial Highlights (Continued)
Touchstone Focused Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 37.91 | $ | 35.47 | $ | 27.96 | $ | 23.91 | $ | 22.23 | $ | 21.81 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income(A) | 0.13 | 0.35 | 0.24 | 0.25 | 0.22 | 0.15 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.07 | ) | 2.28 | 7.57 | 3.86 | (B) | 1.66 | 1.71 | ||||||||||||||||
Total from investment operations | (1.94 | ) | 2.63 | 7.81 | 4.11 | 1.88 | 1.86 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.19 | ) | (0.30 | ) | (0.06 | ) | (0.36 | ) | (0.18 | ) | |||||||||||||
Realized capital gains | — | — | — | — | — | (1.26 | ) | |||||||||||||||||
Total distributions | — | (0.19 | ) | (0.30 | ) | (0.06 | ) | (0.36 | ) | (1.44 | ) | |||||||||||||
Capital Contribution | — | — | — | — | 0.16 | (C) | — | |||||||||||||||||
Net asset value at end of period | $ | 35.97 | $ | 37.91 | $ | 35.47 | $ | 27.96 | $ | 23.91 | $ | 22.23 | ||||||||||||
Total return | (5.15 | %)(D) | 7.40 | % | 28.19 | % | 17.24 | % | 9.45 | %(C) | 9.86 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 52,621 | $ | 51,765 | $ | 30,446 | $ | 589 | $ | 29,879 | $ | 28,879 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.81 | %(E) | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | ||||||||||||
Gross expenses | 0.89 | %(E) | 0.88 | % | 1.00 | % | 1.16 | % | 0.89 | % | 0.95 | % | ||||||||||||
Net investment income | 0.68 | %(E) | 0.97 | % | 0.75 | % | 1.06 | % | 1.02 | % | 0.75 | % | ||||||||||||
Portfolio turnover rate | 15 | %(D) | 33 | % | 27 | %(F) | 189 | % | 99 | % | 115 | % |
(A) | The net investment income per share is based on average shares outstanding for the period. |
(B) | Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.75%. |
(C) | Impact of one time distribution of settlement funds from the Bank of America Fair Fund. If the distribution had not occurred the total return would have been lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
51 |
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 33.29 | $ | 32.61 | $ | 27.05 | $ | 25.64 | $ | 25.27 | $ | 20.88 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.15 | ) | 0.01 | (0.01 | ) | (0.16 | ) | 0.07 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (3.69 | ) | 4.82 | 6.91 | 3.35 | 0.53 | 4.44 | |||||||||||||||||
Total from investment operations | (3.75 | ) | 4.67 | 6.92 | 3.34 | 0.37 | 4.51 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net Investment Income | — | — | — | — | — | (0.12 | ) | |||||||||||||||||
Realized capital gains | — | (3.99 | ) | (1.36 | ) | (1.93 | ) | — | — | |||||||||||||||
Total distributions | — | (3.99 | ) | (1.36 | ) | (1.93 | ) | — | (0.12 | ) | ||||||||||||||
Net asset value at end of period | $ | 29.54 | $ | 33.29 | $ | 32.61 | $ | 27.05 | $ | 25.64 | $ | 25.27 | ||||||||||||
Total return(A) | (11.24 | %)(B) | 14.99 | % | 25.84 | % | 14.08 | % | 1.47 | % | 21.71 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 41,223 | $ | 49,162 | $ | 47,552 | $ | 74,588 | $ | 62,274 | $ | 96,930 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(C) | 1.24 | % | 1.22 | % | 1.22 | % | 1.21 | % | 1.16 | % | ||||||||||||
Gross expenses | 1.37 | %(C) | 1.40 | % | 1.43 | % | 1.37 | % | 1.43 | % | 1.50 | % | ||||||||||||
Net investment income (loss) | (0.31 | %)(C) | (0.47 | %) | 0.09 | % | (0.06 | %) | (0.52 | %) | 0.10 | % | ||||||||||||
Portfolio turnover rate | 59 | %(B) | 87 | % | 79 | % | 95 | %(D) | 204 | % | 130 | % |
Touchstone Growth Opportunities Fund — Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 29.27 | $ | 29.32 | $ | 24.62 | $ | 23.68 | $ | 23.50 | $ | 19.49 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.16 | ) | (0.33 | ) | (0.18 | ) | (0.17 | ) | (0.29 | ) | (0.07 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (3.23 | ) | 4.27 | 6.24 | 3.04 | 0.47 | 4.12 | |||||||||||||||||
Total from investment operations | (3.39 | ) | 3.94 | 6.06 | 2.87 | 0.18 | 4.05 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net Investment Income | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Realized capital gains | — | (3.99 | ) | (1.36 | ) | (1.93 | ) | — | — | |||||||||||||||
Total distributions | — | (3.99 | ) | (1.36 | ) | (1.93 | ) | — | (0.04 | ) | ||||||||||||||
Net asset value at end of period | $ | 25.88 | $ | 29.27 | $ | 29.32 | $ | 24.62 | $ | 23.68 | $ | 23.50 | ||||||||||||
Total return(A) | (11.58 | %)(B) | 14.11 | % | 24.92 | % | 13.24 | % | 0.77 | % | 20.82 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 11,996 | $ | 13,813 | $ | 12,498 | $ | 10,375 | $ | 9,132 | $ | 10,592 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(C) | 1.99 | % | 1.97 | % | 1.97 | % | 1.96 | % | 1.93 | % | ||||||||||||
Gross expenses | 2.17 | %(C) | 2.21 | % | 2.25 | % | 2.37 | % | 2.45 | % | 2.58 | % | ||||||||||||
Net investment loss | (1.06 | %)(C) | (1.22 | %) | (0.66 | %) | (0.81 | %) | (1.27 | %) | (0.43 | %) | ||||||||||||
Portfolio turnover rate | 59 | %(B) | 87 | % | 79 | % | 95 | %(D) | 204 | % | 130 | % |
(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 purchases and sales of the Fifth Third Mid Cap Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
52 |
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 33.81 | $ | 32.97 | $ | 27.27 | $ | 25.80 | $ | 25.38 | $ | 20.94 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.06 | ) | 0.11 | 0.03 | (0.05 | ) | 0.14 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (3.76 | ) | 4.90 | 6.96 | 3.40 | 0.47 | 4.45 | |||||||||||||||||
Total from investment operations | (3.77 | ) | 4.84 | 7.07 | 3.43 | 0.42 | 4.59 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.01 | ) | (0.01 | ) | (0.03 | ) | — | (0.15 | ) | ||||||||||||||
Realized capital gains | — | (3.99 | ) | (1.36 | ) | (1.93 | ) | — | — | |||||||||||||||
Total distributions | — | (4.00 | ) | (1.37 | ) | (1.96 | ) | — | (0.15 | ) | ||||||||||||||
Net asset value at end of period | $ | 30.04 | $ | 33.81 | $ | 32.97 | $ | 27.27 | $ | 25.80 | $ | 25.38 | ||||||||||||
Total return | (11.15 | %)(A) | 15.32 | % | 26.23 | % | 14.38 | % | 1.66 | % | 22.06 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 90,564 | $ | 107,295 | $ | 92,063 | $ | 35,354 | $ | 12,254 | $ | 2,947 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(B) | 0.94 | % | 0.92 | % | 0.96 | % | 0.96 | % | 0.93 | % | ||||||||||||
Gross expenses | 1.04 | %(B) | 1.01 | % | 1.03 | % | 1.16 | % | 1.42 | % | 1.73 | % | ||||||||||||
Net investment income (loss) | (0.06 | %)(B) | (0.17 | %) | 0.39 | % | 0.19 | % | (0.27 | %) | 0.63 | % | ||||||||||||
Portfolio turnover rate | 59 | %(A) | 87 | % | 79 | % | 95 | %(C) | 204 | % | 130 | % |
Touchstone Growth Opportunities Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 34.05 | $ | 33.18 | $ | 27.42 | $ | 25.92 | $ | 25.46 | $ | 20.98 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net Investment income (loss) | 0.01 | (0.04 | ) | 0.14 | 0.07 | (0.03 | ) | 0.16 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (3.79 | ) | 4.92 | 7.01 | 3.41 | 0.49 | 4.48 | |||||||||||||||||
Total from investment operations | (3.78 | ) | 4.88 | 7.15 | 3.48 | 0.46 | 4.64 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.02 | ) | (0.03 | ) | (0.05 | ) | — | (0.16 | ) | ||||||||||||||
Realized capital gains | — | (3.99 | ) | (1.36 | ) | (1.93 | ) | — | — | |||||||||||||||
Total distributions | — | (4.01 | ) | (1.39 | ) | (1.98 | ) | — | (0.16 | ) | ||||||||||||||
Net asset value at end of period | $ | 30.27 | $ | 34.05 | $ | 33.18 | $ | 27.42 | $ | 25.92 | $ | 25.46 | ||||||||||||
Total return | (11.07 | %)(A) | 15.39 | % | 26.34 | % | 14.50 | % | 1.81 | % | 22.25 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 126,245 | $ | 134,795 | $ | 115,769 | $ | 93,800 | $ | 70,643 | $ | 56,381 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.89 | %(B) | 0.87 | % | 0.84 | % | 0.84 | % | 0.81 | % | 0.75 | % | ||||||||||||
Gross expenses | 0.97 | %(B) | 0.97 | % | 0.98 | % | 1.00 | % | 1.06 | % | 1.15 | % | ||||||||||||
Net investment income (loss) | 0.04 | %(B) | (0.10 | %) | 0.47 | % | 0.31 | % | (0.12 | %) | 0.78 | % | ||||||||||||
Portfolio turnover rate | 59 | %(A) | 87 | % | 79 | % | 95 | %(C) | 204 | % | 130 | % |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes the purchases and sales of the Fifth Third Mid Cap Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
53 |
Financial Highlights (Continued)
Touchstone International Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September | March | |||||||||||||||||||||||||||
30, 2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 8.41 | $ | 9.12 | $ | 7.62 | $ | 7.06 | $ | 8.42 | $ | 7.33 | $ | 7.24 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.12 | (B) | 0.18 | 0.24 | 0.06 | (B) | 0.14 | (B) | 0.17 | (B) | 0.14 | (B) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.99 | ) | (0.63 | ) | 1.35 | 0.73 | (1.30 | ) | 1.09 | 0.19 | ||||||||||||||||||
Total from investment operations | (0.87 | ) | (0.45 | ) | 1.59 | 0.79 | (1.16 | ) | 1.26 | 0.33 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | (0.26 | ) | (0.09 | ) | (0.23 | ) | (0.20 | ) | (0.17 | ) | (0.24 | ) | |||||||||||||||
Net asset value at end of period | $ | 7.54 | $ | 8.41 | $ | 9.12 | $ | 7.62 | $ | 7.06 | $ | 8.42 | $ | 7.33 | ||||||||||||||
Total return(C) | (10.35 | %)(D) | (4.95 | %) | 20.90 | % | 11.15 | %(D) | (13.67 | %) | 17.17 | % | 4.34 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 3,925 | $ | 5,280 | $ | 6,032 | $ | 6,394 | $ | 7,266 | $ | 10,258 | $ | 10,216 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.38 | %(E) | 1.39 | % | 1.37 | % | 1.36 | %(E)(F) | 1.40 | %(F) | 1.42 | %(F) | 1.43 | %(F) | ||||||||||||||
Gross expenses | 2.10 | %(E) | 1.97 | % | 1.79 | % | 2.22 | %(E) | 1.68 | % | 1.61 | % | 1.59 | % | ||||||||||||||
Net investment income | 2.79 | %(E) | 1.89 | % | 2.32 | % | 1.21 | %(E) | 2.00 | % | 2.10 | % | 1.87 | % | ||||||||||||||
Portfolio turnover rate | 10 | %(D) | 26 | % | 31 | % | 133 | %(D) | 121 | % | 131 | % | 137 | % |
Touchstone International Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September | March | |||||||||||||||||||||||||||
30, 2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 7.77 | $ | 8.46 | $ | 7.10 | $ | 6.59 | $ | 7.85 | $ | 6.84 | $ | 6.79 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.08 | (B) | 0.07 | 0.15 | 0.02 | (B) | 0.08 | (B) | 0.10 | (B) | 0.08 | (B) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.91 | ) | (0.55 | ) | 1.27 | 0.67 | (1.21 | ) | 1.01 | 0.18 | ||||||||||||||||||
Total from investment operations | (0.83 | ) | (0.48 | ) | 1.42 | 0.69 | (1.13 | ) | 1.11 | 0.26 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | (0.21 | ) | (0.06 | ) | (0.18 | ) | (0.13 | ) | (0.10 | ) | (0.21 | ) | |||||||||||||||
Net asset value at end of period | $ | 6.94 | $ | 7.77 | $ | 8.46 | $ | 7.10 | $ | 6.59 | $ | 7.85 | $ | 6.84 | ||||||||||||||
Total return(C) | (10.68 | %)(D) | (5.72 | %) | 20.05 | % | 10.53 | %(D) | (14.37 | %) | 16.23 | % | 3.59 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 143 | $ | 233 | $ | 216 | $ | 217 | $ | 169 | $ | 275 | $ | 310 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 2.13 | %(E) | 2.14 | % | 2.12 | % | 2.11 | %(E)(F) | 2.15 | %(F) | 2.17 | %(F) | 2.18 | %(F) | ||||||||||||||
Gross expenses | 8.43 | %(E) | 8.35 | % | 6.04 | % | 9.33 | %(E) | 2.43 | % | 2.36 | % | 2.34 | % | ||||||||||||||
Net investment income | 2.04 | %(E) | 1.14 | % | 1.57 | % | 0.46 | %(E) | 1.24 | % | 1.28 | % | 1.11 | % | ||||||||||||||
Portfolio turnover rate | 10 | %(D) | 26 | % | 31 | % | 133 | %(D) | 121 | % | 131 | % | 137 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(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) | Includes interest expense relating to settlement of foreign futures. Interest expense was less than 0.005% for the eight months ended March 31, 2013 and 0.02%, 0.01% and 0.01% for the years ended July 31, 2012, 2011 and 2010, respectively. |
See accompanying Notes to Financial Statements.
54 |
Financial Highlights (Continued)
Touchstone International Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September | March | |||||||||||||||||||||||||||
30, 2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A)(B) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 8.41 | $ | 9.13 | $ | 7.62 | $ | 7.07 | $ | 8.44 | $ | 7.35 | $ | 7.25 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.13 | (C) | 0.23 | 0.19 | 0.07 | (C) | 0.16 | (C) | 0.18 | (C) | 0.16 | (C) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.99 | ) | (0.66 | ) | 1.43 | 0.73 | (1.31 | ) | 1.10 | 0.19 | ||||||||||||||||||
Total from investment operations | (0.86 | ) | (0.43 | ) | 1.62 | 0.80 | (1.15 | ) | 1.28 | 0.35 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | (0.29 | ) | (0.11 | ) | (0.25 | ) | (0.22 | ) | (0.19 | ) | (0.25 | ) | |||||||||||||||
Net asset value at end of period | $ | 7.55 | $ | 8.41 | $ | 9.13 | $ | 7.62 | $ | 7.07 | $ | 8.44 | $ | 7.35 | ||||||||||||||
Total return | (10.23 | %)(D) | (4.72 | %) | 21.32 | % | 11.33 | %(D) | (13.47 | %) | 17.42 | % | 4.61 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 5,372 | $ | 35,108 | $ | 43,794 | $ | 31,527 | $ | 123,607 | $ | 176,521 | $ | 229,888 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.13 | %(E) | 1.09 | % | 1.04 | % | 1.08 | %(E)(F) | 1.15 | %(F) | 1.17 | %(F) | 1.18 | %(F) | ||||||||||||||
Gross expenses | 1.88 | %(E) | 1.36 | % | 1.33 | % | 1.51 | %(E) | 1.43 | % | 1.36 | % | 1.34 | % | ||||||||||||||
Net investment income | 3.04 | %(E) | 2.19 | % | 2.65 | % | 1.49 | %(E) | 2.27 | % | 2.22 | % | 2.18 | % | ||||||||||||||
Portfolio turnover rate | 10 | %(D) | 26 | % | 31 | % | 133 | %(D) | 121 | % | 131 | % | 137 | % |
Touchstone International Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | Period | |||||||||||||||
September 30, | Ended | |||||||||||||||
2015 | Year Ended March 31, | March 31, | ||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(B)(G) | |||||||||||||
Net asset value at beginning of period | $ | 8.42 | $ | 9.14 | $ | 7.62 | $ | 7.43 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.14 | (C) | 0.24 | 0.28 | 0.08 | (C) | ||||||||||
Net realized and unrealized gains (losses) on investments | (1.00 | ) | (0.66 | ) | 1.36 | 0.36 | ||||||||||
Total from investment operations | (0.86 | ) | (0.42 | ) | 1.64 | 0.44 | ||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | (0.30 | ) | (0.12 | ) | (0.25 | ) | |||||||||
Net asset value at end of period | $ | 7.56 | $ | 8.42 | $ | 9.14 | $ | 7.62 | ||||||||
Total return | (10.21 | %)(D) | (4.66 | %) | 21.51 | % | 5.94 | %(D) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 92,760 | $ | 72,607 | $ | 83,628 | $ | 88,931 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.99 | %(E) | 0.99 | % | 0.97 | % | 0.96 | %(E) | ||||||||
Gross expenses | 1.27 | %(E) | 1.28 | % | 1.29 | % | 1.36 | %(E) | ||||||||
Net investment income | 3.18 | %(E) | 2.29 | % | 2.72 | % | 1.61 | %(E) | ||||||||
Portfolio turnover rate | 10 | %(D) | 26 | % | 31 | % | 133 | %(D) |
(A) | Effective September 10, 2012, Institutional Class shares were renamed Class Y shares. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Includes interest expense relating to settlement of foreign futures. Interest expense was less than 0.005% for the eight months ended March 31, 2013 and 0.02%, 0.01% and 0.01% for the years ended July 31, 2012, 2011 and 2010, respectively. |
(G) | The Fund began issuing Institutional Class shares on September 10, 2012. |
See accompanying Notes to Financial Statements.
55 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 27.06 | $ | 26.50 | $ | 23.61 | $ | 22.41 | $ | 24.91 | $ | 20.18 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.14 | ) | (0.10 | ) | (0.05 | ) | (0.16 | ) | (0.03 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (3.06 | ) | 4.19 | 5.74 | 2.71 | (1.05 | ) | 4.76 | ||||||||||||||||
Total from investment operations | (3.11 | ) | 4.05 | 5.64 | 2.66 | (1.21 | ) | 4.73 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (3.49 | ) | (2.75 | ) | (1.46 | ) | (1.29 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 23.95 | $ | 27.06 | $ | 26.50 | $ | 23.61 | $ | 22.41 | $ | 24.91 | ||||||||||||
Total return(A) | (11.49 | %)(B) | 16.34 | % | 24.82 | % | 12.73 | % | (3.68 | %) | 23.44 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 220,497 | $ | 267,421 | $ | 308,316 | $ | 299,834 | $ | 330,808 | $ | 584,089 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.31 | %(C) | 1.34 | % | 1.38 | % | 1.40 | % | 1.40 | % | 1.47 | % | ||||||||||||
Gross expenses | 1.31 | %(C) | 1.34 | % | 1.38 | % | 1.40 | % | 1.40 | % | 1.47 | % | ||||||||||||
Net investment loss | (0.33 | %)(C) | (0.55 | %) | (0.41 | %) | (0.21 | %) | (0.79 | %) | (0.13 | %) | ||||||||||||
Portfolio turnover rate | 38 | %(B) | 73 | % | 79 | % | 70 | % | 64 | % | 99 | % |
Touchstone Mid Cap Growth Fund—Class B
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 20.32 | $ | 20.82 | $ | 19.12 | $ | 18.48 | $ | 20.89 | $ | 16.98 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.13 | ) | (0.29 | ) | (0.19 | ) | (0.12 | ) | (0.48 | ) | (0.10 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (2.29 | ) | 3.28 | 4.64 | 2.22 | (0.64 | ) | 4.01 | ||||||||||||||||
Total from investment operations | (2.42 | ) | 2.99 | 4.45 | 2.10 | (1.12 | ) | 3.91 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (3.49 | ) | (2.75 | ) | (1.46 | ) | (1.29 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 17.90 | $ | 20.32 | $ | 20.82 | $ | 19.12 | $ | 18.48 | $ | 20.89 | ||||||||||||
Total return(A) | (11.91 | %)(B) | 15.72 | % | 24.36 | % | 12.41 | % | (3.99 | %) | 23.03 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,782 | $ | 2,793 | $ | 4,709 | $ | 5,880 | $ | 10,681 | $ | 23,376 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.14 | %(C) | 1.89 | % | 1.73 | % | 1.72 | % | 1.59 | % | 1.77 | % | ||||||||||||
Gross expenses | 2.17 | %(C) | 1.89 | % | 1.73 | % | 1.72 | % | 1.59 | % | 1.82 | % | ||||||||||||
Net investment loss | (1.16 | %)(C) | (1.10 | %) | (0.76 | %) | (0.52 | %) | (0.97 | %) | (0.43 | %) | ||||||||||||
Portfolio turnover rate | 38 | %(B) | 73 | % | 79 | % | 70 | % | 64 | % | 99 | % |
(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.
56 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.78 | $ | 20.39 | $ | 18.84 | $ | 18.31 | $ | 20.81 | $ | 17.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.11 | ) | (0.24 | ) | (0.22 | ) | (0.18 | ) | (0.36 | ) | (0.17 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (2.23 | ) | 3.12 | 4.52 | 2.17 | (0.85 | ) | 3.98 | ||||||||||||||||
Total from investment operations | (2.34 | ) | 2.88 | 4.30 | 1.99 | (1.21 | ) | 3.81 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (3.49 | ) | (2.75 | ) | (1.46 | ) | (1.29 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 17.44 | $ | 19.78 | $ | 20.39 | $ | 18.84 | $ | 18.31 | $ | 20.81 | ||||||||||||
Total return(A) | (11.83 | %)(B) | 15.51 | % | 23.90 | % | 11.90 | % | (4.43 | %) | 22.41 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 134,020 | $ | 157,315 | $ | 149,927 | $ | 141,485 | $ | 162,693 | $ | 223,376 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.05 | %(C) | 2.07 | % | 2.11 | % | 2.15 | % | 2.17 | % | 2.24 | % | ||||||||||||
Gross expenses | 2.05 | %(C) | 2.07 | % | 2.11 | % | 2.15 | % | 2.17 | % | 2.27 | % | ||||||||||||
Net investment loss | (1.08 | %)(C) | (1.29 | %) | (1.14 | %) | (0.95 | %) | (1.56 | %) | (0.90 | %) | ||||||||||||
Portfolio turnover rate | 38 | %(B) | 73 | % | 79 | % | 70 | % | 64 | % | 99 | % |
Touchstone Mid Cap Growth Fund — Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 27.71 | $ | 27.00 | $ | 23.93 | $ | 22.63 | $ | 25.07 | $ | 20.27 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.08 | ) | (0.05 | ) | 0.01 | (0.10 | ) | 0.01 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (3.15 | ) | 4.28 | 5.87 | 2.75 | (1.05 | ) | 4.79 | ||||||||||||||||
Total from investment operations | (3.16 | ) | 4.20 | 5.82 | 2.76 | (1.15 | ) | 4.80 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (3.49 | ) | (2.75 | ) | (1.46 | ) | (1.29 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 24.55 | $ | 27.71 | $ | 27.00 | $ | 23.93 | $ | 22.63 | $ | 25.07 | ||||||||||||
Total return | (11.40 | %)(B) | 16.69 | % | 25.17 | % | 13.05 | % | (3.42 | %) | 23.68 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 264,166 | $ | 299,247 | $ | 263,578 | $ | 164,267 | $ | 123,593 | $ | 47,470 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.05 | %(C) | 1.07 | % | 1.07 | % | 1.16 | % | 1.11 | % | 1.24 | % | ||||||||||||
Gross expenses | 1.05 | %(C) | 1.07 | % | 1.07 | % | 1.16 | % | 1.11 | % | 1.24 | % | ||||||||||||
Net investment income (loss) | (0.07 | %)(C) | (0.29 | %) | (0.11 | %) | 0.04 | % | (0.49 | %) | 0.05 | % | ||||||||||||
Portfolio turnover rate | 38 | %(B) | 73 | % | 79 | % | 70 | % | 64 | % | 99 | % |
(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.
57 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||
Ended | ||||||||||||||||||||
September 30, | ||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 27.85 | $ | 27.10 | $ | 23.99 | $ | 22.65 | $ | 25.30 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.01 | (0.03 | ) | 0.03 | 0.04 | (0.03 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | (3.16 | ) | 4.27 | 5.83 | 2.76 | (1.33 | ) | |||||||||||||
Total from investment operations | (3.15 | ) | 4.24 | 5.86 | 2.80 | (1.36 | ) | |||||||||||||
Distributions from: | ||||||||||||||||||||
Realized capital gains | — | (3.49 | ) | (2.75 | ) | (1.46 | ) | (1.29 | ) | |||||||||||
Net asset value at end of period | $ | 24.70 | $ | 27.85 | $ | 27.10 | $ | 23.99 | $ | 22.65 | ||||||||||
Total return | (11.31 | %)(B) | 16.73 | % | 25.32 | % | 13.23 | % | (4.22 | %)(B) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 86,060 | $ | 102,420 | $ | 35,097 | $ | 38,821 | $ | 25,550 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.94 | %(C) | 0.98 | % | 0.97 | % | 0.98 | % | 1.03 | %(C) | ||||||||||
Gross expenses | 0.94 | %(C) | 0.98 | % | 0.97 | % | 0.98 | % | 1.17 | %(C) | ||||||||||
Net investment income (loss) | 0.04 | %(C) | (0.20 | %) | 0.00 | %(D) | 0.21 | % | (0.41 | %)(C) | ||||||||||
Portfolio turnover rate | 38 | %(B) | 73 | % | 79 | % | 70 | % | 64 | % |
(A) | Represents the period from commencement of operations (April 1, 2011) through March 31, 2012. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than 0.005%. |
See accompanying Notes to Financial Statements.
58 |
Financial Highlights (Continued)
Touchstone Sands Capital Emerging Markets Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | Period | |||||||
September 30, | Ended | |||||||
2015 | March 31, | |||||||
(Unaudited) | 2015(A) | |||||||
Net asset value at beginning of period | $ | 10.37 | $ | 10.00 | ||||
Income (loss) from investment operations: | ||||||||
Net investment loss | (0.01 | ) | (0.03 | ) | ||||
Net realized and unrealized gains (losses) on investments | (1.57 | ) | 0.40 | |||||
Total from investment operations | (1.58 | ) | 0.37 | |||||
Net asset value at end of period | $ | 8.79 | $ | 10.37 | ||||
Total return | (14.49 | %)(B) | 3.70 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 41,767 | $ | 39,541 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 1.49 | %(C) | 1.49 | %(C) | ||||
Gross expenses | 1.59 | %(C) | 1.68 | %(C) | ||||
Net investment loss | (0.14 | %)(C) | (0.46 | %)(C) | ||||
Portfolio turnover rate | 15 | %(B) | 90 | %(B) |
Touchstone Sands Capital Emerging Markets Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | Period | |||||||
September 30, | Ended | |||||||
2015 | March 31, | |||||||
(Unaudited) | 2015(A) | |||||||
Net asset value at beginning of period | $ | 10.37 | $ | 10.00 | ||||
Income (loss) from investment operations: | ||||||||
Net investment loss | (0.00 | )(D) | (0.03 | ) | ||||
Net realized and unrealized gains (losses) on investments | (1.58 | ) | 0.40 | |||||
Total from investment operations | (1.58 | ) | 0.37 | |||||
Net asset value at end of period | $ | 8.79 | $ | 10.37 | ||||
Total return | (14.49 | %)(B) | 3.70 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 34,335 | $ | 32,743 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 1.39 | %(C) | 1.39 | %(C) | ||||
Gross expenses | 1.55 | %(C) | 1.59 | %(C) | ||||
Net investment loss | (0.04 | %)(C) | (0.36 | %)(C) | ||||
Portfolio turnover rate | 15 | %(B) | 90 | %(B) |
(A) | Represents the period from commencement of operations (May 12, 2014) through March 31, 2015. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than $(0.005) per share. |
See accompanying Notes to Financial Statements.
59 |
Financial Highlights (Continued)
Touchstone Small Cap Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September | March | |||||||||||||||||||||||||||
30, 2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 5.70 | $ | 5.24 | $ | 4.84 | $ | 4.25 | $ | 4.24 | $ | 3.63 | $ | 3.01 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | (0.04 | ) | (0.01 | ) | — | (B)(C) | (— | )(B)(C) | (0.01 | )(B) | (0.01 | )(B) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.45 | ) | 0.63 | 1.02 | 0.85 | 0.01 | 0.62 | 0.63 | ||||||||||||||||||||
Total from investment operations | (0.48 | ) | 0.59 | 1.01 | 0.85 | 0.01 | 0.61 | 0.62 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||
Realized capital gains | — | (0.13 | ) | (0.61 | ) | (0.24 | ) | — | — | — | ||||||||||||||||||
Total distributions | — | (0.13 | ) | (0.61 | ) | (0.26 | ) | — | — | — | ||||||||||||||||||
Net asset value at end of period | $ | 5.22 | $ | 5.70 | $ | 5.24 | $ | 4.84 | $ | 4.25 | $ | 4.24 | $ | 3.63 | ||||||||||||||
Total return(D) | (8.42 | %)(E) | 11.52 | % | 22.63 | % | 20.93 | %(E) | 0.24 | % | 16.80 | % | 20.60 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 36,527 | $ | 34,017 | $ | 35,303 | $ | 14,243 | $ | 15,010 | $ | 18,117 | $ | 11,649 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.44 | %(F) | 1.44 | % | 1.45 | % | 1.60 | %(F) | 1.60 | % | 1.60 | % | 1.60 | % | ||||||||||||||
Gross expenses | 1.61 | %(F) | 1.69 | % | 1.81 | % | 2.13 | %(F) | 2.01 | % | 1.96 | % | 2.07 | % | ||||||||||||||
Net investment income (loss) | (1.01 | %)(F) | (0.71 | %) | (0.48 | %) | 0.15 | %(F) | (0.07 | %) | (0.33 | %) | (0.41 | %) | ||||||||||||||
Portfolio turnover rate | 21 | %(E) | 46 | % | 195 | %(G) | 45 | %(E)(H) | 48 | % | 59 | % | 56 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund. If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
60 |
Financial Highlights (Continued)
Touchstone Small Cap Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September | March | |||||||||||||||||||||||||||
30, 2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 4.78 | $ | 4.45 | $ | 4.22 | $ | 3.75 | $ | 3.77 | $ | 3.25 | $ | 2.72 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment loss | (0.03 | ) | (0.05 | ) | (0.04 | ) | (0.02 | )(B) | (0.03 | )(B) | (0.04 | )(B) | (0.04 | )(B) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.39 | ) | 0.51 | 0.88 | 0.74 | 0.01 | 0.56 | 0.57 | ||||||||||||||||||||
Total from investment operations | (0.42 | ) | 0.46 | 0.84 | 0.72 | (0.02 | ) | 0.52 | 0.53 | |||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | (0.01 | ) | — | — | — | ||||||||||||||||||||
Realized capital gains | — | (0.13 | ) | (0.61 | ) | (0.24 | ) | — | — | — | ||||||||||||||||||
Total distributions | — | (0.13 | ) | (0.61 | ) | (0.25 | ) | — | — | — | ||||||||||||||||||
Net asset value at end of period | $ | 4.36 | $ | 4.78 | $ | 4.45 | $ | 4.22 | $ | 3.75 | $ | 3.77 | $ | 3.25 | ||||||||||||||
Total return(C) | (8.79 | %)(D) | 10.64 | % | 21.85 | % | 20.17 | %(D) | (0.53 | %) | 16.00 | % | 19.49 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 17,594 | $ | 12,651 | $ | 7,429 | $ | 3,509 | $ | 3,830 | $ | 5,563 | $ | 2,876 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 2.19 | %(E) | 2.19 | % | 2.20 | % | 2.35 | %(E) | 2.35 | % | 2.35 | % | 2.35 | % | ||||||||||||||
Gross expenses | 2.38 | %(E) | 2.55 | % | 2.65 | % | 3.16 | %(E) | 2.76 | % | 2.71 | % | 2.82 | % | ||||||||||||||
Net investment loss | (1.76 | %)(E) | (1.46 | %) | (1.23 | %) | (0.60 | %)(E) | (0.82 | %) | (1.10 | %) | (1.17 | %) | ||||||||||||||
Portfolio turnover rate | 21 | %(D) | 46 | % | 195 | %(F) | 45 | %(D)(G) | 48 | % | 59 | % | 56 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(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 purchases and sales of the Touchstone Diversified Small Cap Growth Fund. If these transactions were included, portfolio turnover would have been higher. |
(G) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
61 |
Financial Highlights (Continued)
Touchstone Small Cap Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Eight | ||||||||||||||||||||||||||||
Six Months | Months | |||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||
September | March | |||||||||||||||||||||||||||
30, 2015 | Year Ended March 31, | 31, | Year Ended July 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013(A)(B) | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 6.33 | $ | 5.78 | $ | 5.27 | $ | 4.61 | $ | 4.58 | $ | 3.92 | $ | 3.24 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.01 | ) | (0.01 | ) | 0.01 | (C) | 0.01 | (C) | — | (C)(D) | (0.01 | ) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.51 | ) | 0.69 | 1.13 | 0.92 | 0.02 | 0.66 | 0.69 | ||||||||||||||||||||
Total from investment operations | (0.53 | ) | 0.68 | 1.12 | 0.93 | 0.03 | 0.66 | 0.68 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | (0.03 | ) | — | — | — | ||||||||||||||||||||
Realized capital gains | — | (0.13 | ) | (0.61 | ) | (0.24 | ) | — | — | — | ||||||||||||||||||
Total distributions | — | (0.13 | ) | (0.61 | ) | (0.27 | ) | — | — | — | ||||||||||||||||||
Net asset value at end of period | $ | 5.80 | $ | 6.33 | $ | 5.78 | $ | 5.27 | $ | 4.61 | $ | 4.58 | $ | 3.92 | ||||||||||||||
Total return | (8.37 | %)(E) | 12.01 | % | 22.88 | % | 20.94 | %(E) | 0.66 | % | 16.84 | % | 20.99 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 363,004 | $ | 314,062 | $ | 37,030 | $ | 18,123 | $ | 23,232 | $ | 26,317 | $ | 21,195 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.18 | %(F) | 1.19 | % | 1.20 | % | 1.35 | %(F) | 1.35 | % | 1.35 | % | 1.35 | % | ||||||||||||||
Gross expenses | 1.27 | %(F) | 1.36 | % | 1.50 | % | 1.77 | %(F) | 1.76 | % | 1.71 | % | 1.82 | % | ||||||||||||||
Net investment income (loss) | (0.75 | %)(F) | (0.46 | %) | (0.23 | %) | 0.40 | %(F) | 0.17 | % | (0.08 | %) | (0.16 | %) | ||||||||||||||
Portfolio turnover rate | 21 | %(E) | 46 | % | 195 | %(G) | 45 | %(E)(H) | 48 | % | 59 | % | 56 | % |
(A) | Effective September 10, 2012, Institutional Class shares were renamed Class Y shares. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(D) | Less than $0.005 per share. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund. If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
62 |
Financial Highlights (Continued)
Touchstone Small Cap Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||||||||||
Ended | Ended | |||||||||||||||
September | March | |||||||||||||||
30, | 31, | |||||||||||||||
2015 | Year Ended March 31, | 2013 | ||||||||||||||
(Unaudited) | 2015 | 2014 | (A)(B) | |||||||||||||
Net asset value at beginning of period | $ | 6.35 | $ | 5.80 | $ | 5.28 | $ | 4.92 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.02 | ) | (— | )(C) | 0.02 | (D) | ||||||||
Net realized and unrealized gains (losses) on investments | (0.50 | ) | 0.70 | 1.13 | 0.61 | |||||||||||
Total from investment operations | (0.52 | ) | 0.68 | 1.13 | 0.63 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | — | — | (0.03 | ) | |||||||||||
Realized capital gains | — | (0.13 | ) | (0.61 | ) | (0.24 | ) | |||||||||
Total distributions | — | (0.13 | ) | (0.61 | ) | (0.27 | ) | |||||||||
Net asset value at end of period | $ | 5.83 | $ | 6.35 | $ | 5.80 | $ | 5.28 | ||||||||
Total return | (8.19 | %)(E) | 11.97 | % | 23.04 | % | 13.56 | %(E) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 27,660 | $ | 12,285 | $ | 12,372 | $ | 3 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.04 | %(F) | 1.04 | % | 1.04 | % | 1.25 | %(F) | ||||||||
Gross expenses | 1.21 | %(F) | 1.31 | % | 1.40 | % | 945.43 | %(F) | ||||||||
Net investment income (loss) | (0.61 | %)(F) | (0.32 | %) | (0.07 | %) | 0.50 | %(F) | ||||||||
Portfolio turnover rate | 21 | %(E) | 46 | % | 195 | %(G) | 45 | %(E)(H) |
(A) | The Fund began issuing Institutional Class shares on September 10, 2012. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | Less than $0.005 per share. |
(D) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund. If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
63 |
Financial Highlights (Continued)
Touchstone Sustainability and Impact Equity Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.96 | $ | 31.81 | $ | 28.74 | $ | 27.74 | $ | 24.95 | $ | 20.74 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.03 | (A) | 0.11 | 0.02 | 0.11 | 0.02 | (A) | (0.09 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.85 | ) | 4.87 | 5.96 | 1.00 | 2.77 | 4.30 | |||||||||||||||||
Total from investment operations | (2.82 | ) | 4.98 | 5.98 | 1.11 | 2.79 | 4.21 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.05 | ) | (0.05 | ) | (0.11 | ) | — | — | ||||||||||||||
Realized capital gains | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | — | — | |||||||||||||||
Total distributions | (10.05 | ) | (5.83 | ) | (2.91 | ) | (0.11 | ) | — | — | ||||||||||||||
Net asset value at end of period | $ | 18.09 | $ | 30.96 | $ | 31.81 | $ | 28.74 | $ | 27.74 | $ | 24.95 | ||||||||||||
Total return(B) | (13.01 | %)(C) | 17.17 | % | 21.27 | % | 4.05 | % | 11.18 | % | 20.30 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 147,868 | $ | 257,273 | $ | 287,813 | $ | 286,572 | $ | 238,488 | $ | 291,827 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(D) | 1.25 | % | 1.23 | % | 1.22 | % | 1.25 | % | 1.25 | % | ||||||||||||
Gross expenses | 1.37 | %(D) | 1.28 | % | 1.29 | % | 1.32 | % | 1.35 | % | 1.36 | % | ||||||||||||
Net investment income (loss) | 0.23 | %(D) | 0.35 | % | 0.06 | % | 0.47 | % | 0.08 | % | (0.36 | %) | ||||||||||||
Portfolio turnover rate | 234 | %(C) | 98 | % | 92 | % | 109 | %(E) | 91 | % | 76 | % |
Touchstone Sustainability and Impact Equity Fund—Class B
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 28.74 | $ | 30.08 | $ | 27.41 | $ | 26.47 | $ | 23.85 | $ | 19.93 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.05 | )(A) | (0.15 | ) | (0.19 | ) | 0.01 | (0.03 | )(A) | (0.20 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | (2.56 | ) | 4.59 | 5.72 | 0.93 | 2.65 | 4.12 | |||||||||||||||||
Total from investment operations | (2.61 | ) | 4.44 | 5.53 | 0.94 | 2.62 | 3.92 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 16.11 | $ | 28.74 | $ | 30.08 | $ | 27.41 | $ | 26.47 | $ | 23.85 | ||||||||||||
Total return(B) | (13.34 | %)(C) | 16.27 | % | 20.62 | % | 3.55 | % | 10.99 | % | 19.67 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,021 | $ | 1,722 | $ | 3,671 | $ | 6,671 | $ | 10,949 | $ | 13,467 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(D) | 2.00 | % | 1.79 | % | 1.68 | % | 1.45 | % | 1.74 | % | ||||||||||||
Gross expenses | 2.98 | %(D) | 2.27 | % | 1.79 | % | 1.68 | % | 1.45 | % | 1.83 | % | ||||||||||||
Net investment income (loss) | (0.52 | %)(D) | (0.40 | %) | (0.50 | %) | 0.00 | %(F) | (0.12 | %) | (0.85 | %) | ||||||||||||
Portfolio turnover rate | 234 | %(C) | 98 | % | 92 | % | 109 | %(E) | 91 | % | 76 | % |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(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 purchases and sales of the Fifth Third Quality Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
(F) | Less than 0.005%. |
See accompanying Notes to Financial Statements.
64 |
Financial Highlights (Continued)
Touchstone Sustainability and Impact Equity Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 28.32 | $ | 29.72 | $ | 27.17 | $ | 26.31 | $ | 23.84 | $ | 19.97 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | )(A) | (0.12 | ) | (0.21 | ) | (0.08 | ) | (0.16 | )(A) | (0.27 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (2.49 | ) | 4.50 | 5.62 | 0.94 | 2.63 | 4.14 | |||||||||||||||||
Total from investment operations | (2.54 | ) | 4.38 | 5.41 | 0.86 | 2.47 | 3.87 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 15.76 | $ | 28.32 | $ | 29.72 | $ | 27.17 | $ | 26.31 | $ | 23.84 | ||||||||||||
Total return(B) | (13.32 | %)(C) | 16.30 | % | 20.35 | % | 3.27 | % | 10.36 | % | 19.38 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 64,563 | $ | 103,861 | $ | 111,631 | $ | 107,572 | $ | 116,350 | $ | 127,172 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(D) | 2.00 | % | 1.98 | % | 1.97 | % | 2.00 | % | 2.00 | % | ||||||||||||
Gross expenses | 2.11 | %(D) | 2.03 | % | 2.04 | % | 2.08 | % | 2.09 | % | 2.13 | % | ||||||||||||
Net investment income (loss) | (0.52 | %)(D) | (0.40 | %) | (0.69 | %) | (0.28 | %) | (0.67 | %) | (1.11 | %) | ||||||||||||
Portfolio turnover rate | 234 | %(C) | 98 | % | 92 | % | 109 | %(E) | 91 | % | 76 | % |
Touchstone Sustainability and Impact Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2015 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 31.49 | $ | 32.23 | $ | 29.07 | $ | 28.09 | $ | 25.19 | $ | 20.89 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.06 | (A) | 0.22 | 0.09 | 0.18 | 0.09 | (A) | (0.02 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.92 | ) | 4.92 | 6.06 | 1.00 | 2.81 | 4.32 | |||||||||||||||||
Total from investment operations | (2.86 | ) | 5.14 | 6.15 | 1.18 | 2.90 | 4.30 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.10 | ) | (0.13 | ) | (0.20 | ) | — | — | ||||||||||||||
Realized capital gains | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | — | — | |||||||||||||||
Total distributions | (10.07 | ) | (5.88 | ) | (2.99 | ) | (0.20 | ) | — | — | ||||||||||||||
Net asset value at end of period | $ | 18.56 | $ | 31.49 | $ | 32.23 | $ | 29.07 | $ | 28.09 | $ | 25.19 | ||||||||||||
Total return | (12.90 | %)(C) | 17.48 | % | 21.62 | % | 4.32 | % | 11.47 | % | 20.58 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 71,634 | $ | 416,741 | $ | 577,708 | $ | 523,413 | $ | 385,411 | $ | 331,733 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(D) | 0.99 | % | 0.97 | % | 0.96 | % | 0.99 | % | 0.99 | % | ||||||||||||
Gross expenses | 1.16 | %(D) | 1.00 | % | 1.05 | % | 1.08 | % | 1.14 | % | 1.13 | % | ||||||||||||
Net investment income (loss) | 0.48 | %(D) | 0.61 | % | 0.32 | % | 0.72 | % | 0.34 | % | (0.10 | %) | ||||||||||||
Portfolio turnover rate | 234 | %(C) | 98 | % | 92 | % | 109 | %(E) | 91 | % | 76 | % |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(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 purchases and sales of the Fifth Third Quality Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
65 |
Financial Highlights (Continued)
Touchstone Sustainability and Impact Equity Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Period | ||||
Ended | ||||
September 30, | ||||
2015 | ||||
(Unaudited)(A) | ||||
Net asset value at beginning of period | $ | 31.44 | ||
Income (loss) from investment operations: | ||||
Net Investment income (loss) | 0.05 | (B) | ||
Net realized and unrealized gains (losses) on investments | (2.86 | ) | ||
Total from investment operations | (2.81 | ) | ||
Distributions from: | ||||
Net investment income | (0.05 | ) | ||
Realized capital gains | (10.02 | ) | ||
Total distributions | (10.07 | ) | ||
Net asset value at end of period | $ | 18.56 | ||
Total return | (12.76 | %)(C) | ||
Ratios and supplemental data: | ||||
Net assets at end of period (000's) | $ | 2,693 | ||
Ratio to average net assets: | ||||
Net expenses | 0.89 | %(D) | ||
Gross expenses | 1.98 | %(D) | ||
Net investment income | 0.58 | %(D) | ||
Portfolio turnover rate | 234 | %(C) |
(A) | The Fund began issuing Institutional Class shares on May 4, 2015. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
66 |
September 30, 2015 (Unaudited)
1. Organization
The Touchstone Strategic Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to a Declaration of Trust dated November 18, 1982. The Trust consists of eighteen funds, including the following eight funds (individually, a “Fund”, and collectively, the “Funds”):
Touchstone Flexible Income Fund (“Flexible Income Fund”)
Touchstone Focused Fund (“Focused Fund”)
Touchstone Growth Opportunities Fund (“Growth Opportunities Fund”)
Touchstone International Value Fund (“International Value Fund”)
Touchstone Mid Cap Growth Fund (“Mid Cap Growth Fund”)
Touchstone Sands Capital Emerging Markets Growth Fund (“Sands Capital Emerging Markets Growth Fund”)
Touchstone Small Cap Growth Fund (“Small Cap Growth Fund”)
Touchstone Sustainability and Impact Equity Fund (“Sustainability and Impact Equity Fund”) (formerly known as Touchstone Large Cap Growth Fund)
Each Fund is diversified, with the exception of the Focused Fund, the Growth Opportunities Fund and the Sands Capital Emerging Markets Growth Fund, each of which is non-diversified.
The Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
Institutional | ||||||||||
Class A | Class B | Class C | Class Y | Class | ||||||
Flexible Income Fund | X | — | X | X | X | |||||
Focused Fund | X | — | X | X | X | |||||
Growth Opportunities Fund | X | — | X | X | X | |||||
International Value Fund | X | — | X | X | X | |||||
Mid Cap Growth Fund | X | X | X | X | X | |||||
Sands Capital Emerging Markets Growth Fund | — | — | — | X | X | |||||
Small Cap Growth Fund | X | — | X | X | X | |||||
Sustainability and Impact Equity Fund | X | X | X | X | X |
Class B shares are closed to new investors and subsequent purchases. 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 goals, policies, and strategies along with information on the classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements — U.S. generally accepted accounting principles (“U.S. GAAP”) define fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their estimated fair value. The Funds define the term “market value”, as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
• | Level 1 – quoted prices in active markets for identical securities |
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Notes to Financial Statements (Unaudited) (Continued)
• | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. 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.
The aggregate value by input level, as of September 30, 2015, 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 allocation, credit quality or sector allocation. The Funds did not hold any Level 3 categorized securities during the six months ended September 30, 2015.
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy. All transfers in and out of the levels are recognized at the value at the end of the period. During the six months ended September 30, 2015, there were no transfers between Levels 1, 2 and 3 for all Funds, except as shown in the Portfolio of Investments for the International Value Fund and Sands Capital Emerging Markets Growth Fund.
The Funds’ portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (“NYSE”) (currently 4:00 p.m., Eastern Time). Portfolio securities traded on stock exchanges are valued at the last reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”) or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Shares of options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An option for which there is no mean price is valued at the last bid (long position) or ask (short positions) price and categorized in Level 1. Shares of open-end mutual funds in which the Funds invest are valued at their respective net asset values (“NAV”) as reported by the underlying funds (“Underlying Funds”) and are categorized in Level 1.
Debt securities held by the Funds are valued at their most recent evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. Money market instruments and other debt securities with a remaining maturity of 60 days or less are valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of regular trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available and categorized in Level 2.
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Notes to Financial Statements (Unaudited) (Continued)
Securities mainly traded on a non-U.S. exchange or denominated in foreign currency are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and generally categorized in Level 2. This may cause the value of the security, if held on the books of the Fund to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV. The Funds may use fair value pricing under the following circumstances, among others:
• | If the value of a security has been materially affected by events occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded. |
• | If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. |
• | If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading. |
• | If the validity of market quotations is not reliable. |
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Funds’ Board of Trustees and are generally categorized in Level 3.
Investment companies — Certain Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds, and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter. An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETFs are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that shares of the fund may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund’s fees and expenses.
Options — The Flexible Income Fund may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Fund intends to purchase), against fluctuations in fair value caused by changes in prevailing market interest rates or foreign currency exchange rates and against changes in overall equity market volatility. In addition, the Fund may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Fund’s option strategy primarily focuses on the use of writing call options on equity indexes. When the Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Fund on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased
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Notes to Financial Statements (Unaudited) (Continued)
(put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an option, bears the risk that the counterparties to the option may not have the ability to meet the terms of the option contracts. There is minimal counterparty credit risk involved in entering into option contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default. Options are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price. As of September 30, 2015, the Flexible Income Fund held purchased options with a fair value of $386,400.
Futures Contracts — The Flexible Income Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund’s exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund’s return. In order to avoid leveraging and related risks, when the Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, in a segregated account with its custodian or otherwise “cover” its position in a manner consistent with the 1940 Act, or the rules of the Securities and Exchange Commission (the “SEC”) or interpretations there under. Collateral equal to the current market value of the futures position will be marked to market on a daily basis.
When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. As of September 30, 2015, the Flexible Income Fund held futures contracts as shown on the Portfolio of Investments and had cash in the amount of $602,072 held as collateral for futures contracts.
Swap Contracts — The Flexible Income Fund may enter into swap transactions, which are financial instruments that typically involve the exchange of cash flows between two parties on specified dates (settlement dates), where the cash flows are based on agreed-upon prices, rates, indexes, etc. The nominal amount on which the cash flows are calculated is called the notional amount. Swaps are individually negotiated and structured to include exposure to a variety of different types of investments or market factors, such as interest rates, foreign currency rates, mortgage securities, corporate borrowing rates, security prices, indexes or inflation rates.
Swap agreements may increase or decrease the overall volatility of the investments of the Fund and its share price. The performance of swap agreements may be affected by a change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from the Fund. If a swap agreement calls for payments by the Fund, the Fund must be prepared to make such payments when due. In addition, if the counterparty’s creditworthiness declines, the value of a swap agreement would be likely to decline, potentially resulting in losses.
Generally, bilateral swap agreements have a fixed maturity date that will be agreed upon by the parties. The agreement can be terminated before the maturity date only under limited circumstances, such as default by one of the parties or insolvency, among others, and can be transferred by a party only with the prior written
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Notes to Financial Statements (Unaudited) (Continued)
consent of the other party. The Fund may be able to eliminate its exposure under a swap agreement either by assignment or by other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. If the counter-party is unable to meet its obligations under the contract, declares bankruptcy, defaults or becomes insolvent, the Fund may not be able to recover the money it expected to receive under the contract.
Centrally cleared swaps are transacted through futures commission merchants that are members of central clearinghouses with the clearinghouses servicing as a central counterparty. Pursuant to rules promulgated under the Dodd-Frank Act, central clearing of swap agreements is currently required for certain market participants trading certain instruments, and central clearing for additional instruments is expected to be implemented by regulators until the majority of the swaps market is ultimately subject to central clearing.
A swap agreement can be a form of leverage, which can magnify the Fund’s gains or losses. In order to reduce the risk associated with leveraging, the Fund may cover its current obligations under swap agreements according to guidelines established by the SEC. If the Fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the Fund’s accrued obligations under the swap agreement over the accrued amount the Fund is entitled to receive under the agreement. If the Fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the Fund’s accrued obligations under the agreement.
Swaps other than security-based swaps are included in the definition of “commodity interests” under the Commodity Exchange Act (the “CEA”). Under recent amendments to Rule 4.5 under the CEA, a Fund may be considered a commodity pool if it trades more than a de minimis amount of commodity interests (including swaps). Under such circumstances, the Fund and its investment advisor may be subject to regulation by the Commodity Futures Trading Commission (“CFTC”). The Fund does not intend to trade above the de minimis limitation, and the Flexible Income Fund’s investment advisor has claimed an exemption from registering with the CFTC as a commodity pool operator and an exemption from registering with the CFTC as a commodity trading advisor.
As of September 30, 2015, the Flexible Income Fund held a swap agreement with an unrealized appreciation of $22,487 and had cash in the amount of $88,130 held as collateral for the swap agreement.
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.
Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing a Fund’s total return, and the potential for losses in excess of a Fund’s initial investment.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily and the change in value is recorded by a
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Notes to Financial Statements (Unaudited) (Continued)
Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.
During the six months ended September 30, 2015, the Flexible Income Fund used forward foreign currency contracts to enhance potential gains, hedge against anticipated currency exchange rates, maintain diversity and liquidity of the portfolio and adjust exposure to foreign currencies.
Real Estate Investment Trusts — The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Derivative instruments and hedging activities — In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Flexible Income Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs over-the-counter (“OTC”) derivatives and foreign exchange contracts, and typically contains, among other things, collateral posting terms and master netting provisions in the event of a default or termination. Under an ISDA Master Agreement, a party may, under certain circumstances, offset with the counterparty certain derivative financial instrument’s payables or receivables with collateral held or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting).These default events include bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset.
When entering into a derivative transaction, the Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails
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Notes to Financial Statements (Unaudited) (Continued)
to meet the terms of its ISDA Master Agreement, which would cause the counterparty to accelerate payment of any net liability owed to it by the Fund.
For financial reporting purposes, a Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
As of September 30, 2015, the Flexible Income Fund’s assets and liabilities (by type) that were subject to a MNA on a gross basis were as follows:
Assets | Liabilities | |||||||
Flexible Income Fund | ||||||||
Forward Foreign Currency Contracts | $ | 1,494,514 | $ | (269,737 | ) | |||
Futures Contracts* | 1,430,130 | (1,058,240 | ) | |||||
Swap Agreements | 22,487 | — | ||||||
Total gross amount of assets and liabilities subject to MNA | $ | 2,947,131 | $ | (1,327,977 | ) |
* Only current day’s variation margin is reported within the receivables of the Statement of Assets and Liabilities. Includes cumulative unrealized appreciation/(depreciation) of futures contracts as reported in the Portfolio of Investments and within the components of net assets section of the Statement of Assets and Liabilities.
The following table presents the Flexible Income Fund’s assets net of amounts available for offset under a MNA and net of the related collateral pledged to the Fund as of September 30, 2015:
Gross | ||||||||||||||||||||||
Amount | Gross Amount Available | |||||||||||||||||||||
of | for Offset in Statement of | Non-Cash | Cash | |||||||||||||||||||
Derivative | Recognized | Assets | Collateral | Collateral | Net | |||||||||||||||||
Counterparty | Type | Assets | and Liabilities | Received | Received | Amount(A) | ||||||||||||||||
ANZ Capital Markets | Forward Foreign Currency Contracts | $ | 225,084 | $ | (30,462 | ) | $ | — | $ | — | $ | 194,622 | ||||||||||
BNY ConvergEx | Forward Foreign Currency Contracts | 374,507 | (48,731 | ) | — | — | 325,776 | |||||||||||||||
Morgan Stanley | Forward Foreign Currency Contracts | 894,923 | (190,544 | ) | — | — | 704,379 | |||||||||||||||
Morgan Stanley | Futures Contracts | 1,430,130 | (1,058,240 | ) | — | (371,890 | ) | — | ||||||||||||||
Wells Fargo | Swap Agreements | 22,487 | — | — | (22,487 | ) | — |
(A) Net amount represents the net amount receivable from the counterparty in the event of default.
The following table presents the Flexible Income Fund’s liabilities net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of September 30, 2015:
Gross | ||||||||||||||||||||||
Amount | ||||||||||||||||||||||
of | Gross Amount Available | Non-Cash | Cash | |||||||||||||||||||
Derivative | Recognized | for Offset in Statement of | Collateral | Collateral | Net | |||||||||||||||||
Counterparty | Type | Liabilities | Assets and Liabilities | Pledged | Pledged | Amount(A) | ||||||||||||||||
ANZ Capital Markets | Forward Foreign Currency Contracts | $ | 30,462 | $ | (30,462 | ) | $ | — | $ | — | $ | — | ||||||||||
BNY ConvergEx | Forward Foreign Currency Contracts | 48,731 | (48,731 | ) | — | — | — | |||||||||||||||
Morgan Stanley | Forward Foreign Currency Contracts | 190,544 | (190,544 | ) | — | — | — | |||||||||||||||
Morgan Stanley | Futures Contracts | 1,058,240 | (1,058,240 | ) | — | — | — |
(A) | Net amount represents the net amount payable due to the counterparty in the event of default. |
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Notes to Financial Statements (Unaudited) (Continued)
The following table sets forth the fair value of the Flexible Income Fund’s derivative financial instruments by primary risk exposure as of September 30, 2015:
Fair Value of Derivative Investments | ||||||||||
As of September 30, 2015 | ||||||||||
Derivatives not accounted for as hedging | Asset | Liability | ||||||||
Fund | instruments under ASC 815 | Derivatives | Derivatives | |||||||
Flexible Income Fund | Forward Foreign Currency Exchange Contracts* | $ | 1,494,514 | $ | (269,737 | ) | ||||
Purchased Options - Equity Contracts** | 386,400 | — | ||||||||
Futures - Interest Rate Contracts*** | 1,430,130 | (1,058,240 | ) | |||||||
Swaps Agreements- Credit Contracts**** | 22,487 | — |
* Statements of Assets and Liabilities Location: Unrealized appreciation on forward foreign currency contracts and unrealized depreciation on forward foreign currency contracts, respectively.
** Statements of Assets and Liabilities Location: Investments, at market value.
*** Statements of Assets and Liabilities Location: Receivable for variation margin for futures contracts. Only current day’s variation margin is reported within the payables/receivable of the Statement of Assets and Liabilities. Includes cumulative unrealized appreciation/(depreciation) of futures contracts as reported in the Portfolio of Investments and within the components of net assets section of the Statement of Assets and Liabilities.
**** Statements of Assets and Liabilities Location: Unrealized appreciation on swap agreements.
The following table sets forth the operations of the Flexible Income Fund’s derivative financial instruments by primary risk exposure for the six months ended September 30, 2015:
The Effect of Derivative Investments on the Statement of Operations | ||||||||||
for the Six Months Ended September 30, 2015 | ||||||||||
Change in | ||||||||||
Unrealized | ||||||||||
Realized Gain | Appreciation | |||||||||
Derivatives not accounted for as hedging | (Loss) | (Depreciation) | ||||||||
Fund | instruments under ASC 815 | on Derivatives | on Derivatives | |||||||
Flexible Income Fund | Forward - Foreign Currency Exchange Contracts* | $ | 2,966,591 | $ | 1,326,931 | |||||
Futures - Equity Contracts** | (422,845 | ) | 122,123 | |||||||
Futures - Interest Rate Contracts** | — | 504,910 | ||||||||
Purchased Options - Equity Contracts*** | 224,751 | 92,882 | ||||||||
Written Options - Equity Contracts**** | 51,463 | — | ||||||||
Swap Agreements - Credit Contracts***** | (6,098 | ) | 22,487 |
* Statements of Operations Location: Net realized gains (losses) on foreign currency transactions and net change in unrealized appreciation (depreciation) on foreign currency transactions, respectively.
** Statements of Operations Location: Net realized losses on futures contracts and net change in unrealized appreciation (depreciation) on futures contracts, respectively.
*** Statements of Operations Location: Net realized gains (losses) on investments from non-affiliated securities and net change in unrealized appreciation (depreciation) on investments, respectively.
**** Statements of Operations Location: Net realized gains on written options.
***** Statements of Operations Location: Net realized losses on swap agreements and net change in unrealized appreciation (depreciation) on swap agreements, respectively.
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Notes to Financial Statements (Unaudited) (Continued)
For the six months ended September 30, 2015, the average quarterly balance of outstanding value of derivative financial instruments for the Flexible Income Fund were as follows:
Flexible | ||||
Income | ||||
Fund | ||||
Equity contracts: | ||||
Purchased Options - Cost | $ | 309,428 | ||
Futures - Average notional value | $ | 481,792 | ||
Interest rate contracts: | ||||
Futures - Average notional value | $ | 323,632,338 | ||
Credit Contracts: | ||||
Credit Default Swaps - Average notional value | $ | 3,333,333 | ||
Foreign currency exchange contracts: | ||||
Average number of contracts | 22 | |||
Average U.S. dollar amount purchased | $ | 37,319,637 | ||
Average U.S. dollar amount sold | $ | 31,130,614 |
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 Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved investment vehicle. The approved investment vehicle is subject to market risk.
As of September 30, 2015, the following Funds loaned securities and received collateral as follows:
Market | Market | |||||||||||||
Value of | Value of | |||||||||||||
Securities | Collateral | |||||||||||||
Fund | Security Type | Loaned* | Received** | Net Amount | ||||||||||
Flexible Income Fund | Corporate Bond | $ | 2,123,500 | $ | 2,202,613 | $ | 79,113 | |||||||
Preferred Stock | 2,354,799 | 2,407,175 | 52,376 | |||||||||||
Total Flexible Income Fund | 4,478,299 | 4,609,788 | 131,489 | |||||||||||
Focused Fund | Common Stock | 31,829,472 | 32,113,620 | 284,148 | ||||||||||
Growth Opportunities Fund | Common Stock | 4,367,993 | 4,275,388 | (92,605 | ) | |||||||||
International Value Fund | Common Stock | 639,890 | 660,760 | 20,870 | ||||||||||
Mid Cap Growth Fund | Common Stock | 4,357,766 | 4,268,832 | (88,934 | ) | |||||||||
Sands Capital Emerging Markets Growth Fund | Common Stock | 1,801,193 | 1,722,125 | (79,068 | ) | |||||||||
Small Cap Growth Fund | Common Stock | 36,355,903 | 35,159,543 | (1,196,360 | ) |
* The remaining contractual maturity is overnight for all securities.
** Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities.
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Notes to Financial Statements (Unaudited) (Continued)
All cash collateral is received, held, and administered by the Funds’ custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral.
Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on trading volumes, float, short-term interest rates and market liquidity. A lending Fund retains the interest or dividends on the investment of any cash received as collateral. The lending Fund continues to receive interest or dividends on the loaned securities.
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the lending Fund. The lending Fund has the right under the lending agreement to recover the securities from the borrower on demand.
Share valuation — The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the Funds is equal to the NAV per share plus a sales load equal to 6.10% of the NAV (or 5.75% of the offering price). There is no sales load on purchases of $1 million or more of Class A shares. The maximum offering price per share of Classes B, C, Y, and Institutional Class shares of the Funds is equal to the NAV per share.
The redemption price per share of each class of shares of the Funds is generally equal to the NAV per share. However, Class A redemptions that were part of a no-load $1 million subscription may be subject to a contingent deferred sales charge (“CDSC”) of up to 1.00% if redeemed within a one-year period from the date of purchase. Class B shares of the Funds are subject to a CDSC of 5.00% in the event of a shareholder redemption within a one-year period of purchase. The CDSC will be incrementally reduced over time. After the 6th year, there is no CDSC. Additionally, Class C shares of the Funds are subject to a CDSC of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, 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. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issues discount (“OID”) and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security.
Distributions to shareholders — Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. Each Fund, except for the Flexible Income Fund, declares and distributes net investment income, if any, annually, as a dividend to shareholders. The Flexible Income Fund declares and distributes net investment income, if any, monthly, as a dividend to shareholders. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the Funds’ net investment income that invest in Underlying Funds is affected by the timing of dividend declarations by those underlying funds.
Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon
76 |
Notes to Financial Statements (Unaudited) (Continued)
their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all the Funds in the Trust, and, if applicable, Touchstone Investment Trust, Touchstone Institutional Funds Trust, Touchstone Variable Series Trust, Touchstone Funds Group Trust, and Touchstone Tax-Free Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.
Security transactions — Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended September 30, 2015:
Flexible | Growth | International | ||||||||||||||
Income | Focused | Opportunities | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 49,585,073 | $ | 177,847,018 | $ | 171,840,795 | $ | 11,575,294 | ||||||||
Proceeds from sales and maturities | $ | 108,543,546 | $ | 169,849,363 | $ | 173,474,639 | $ | 10,643,434 |
Sands | ||||||||||||||||
Capital | ||||||||||||||||
Emerging | Sustainability | |||||||||||||||
Mid Cap | Markets | Small Cap | and Impact | |||||||||||||
Growth | Growth | Growth | Equity | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 291,750,213 | $ | 27,645,972 | $ | 204,986,756 | $ | 1,043,608,385 | ||||||||
Proceeds from sales and maturities | $ | 339,308,022 | $ | 11,031,981 | $ | 86,157,593 | $ | 1,471,172,325 |
For the six months ended September 30, 2015, purchases and proceeds from sales and maturities in U.S. Government securities were $119,160,379 and $91,033,198 for the Flexible Income Fund, respectively.
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also officers of Touchstone Advisors, Inc. (the “Advisor”), Touchstone Securities, Inc. (the “Underwriter”), or BNY Mellon Investment Servicing (U.S.) Inc. (“BNY Mellon”), the Sub-Administrator and Transfer Agent to the Funds. Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned, indirect subsidiaries of Western & Southern Financial Group, Inc. (“Western & Southern”).
On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accruedTrustee-related expenses of $54,200 for the six months ended September 30, 2015.
77 |
Notes to Financial Statements (Unaudited) (Continued)
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under terms of an advisory agreement (“Advisory Agreement”). Under the Advisory Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.
Flexible Income Fund | 0.70% on the first $500 million |
0.60% on such assets in excess of $500 million | |
Focused Fund | 0.70% on the first $100 million |
0.65% on the next $400 million | |
0.60% on such assets in excess of $500 million | |
Growth Opportunities Fund | 0.75% on the first $500 million |
0.70% on the next $500 million | |
0.65% on such assets in excess of $1 billion | |
International Value Fund | 1.00% |
Mid Cap Growth Fund | 0.75% on the first $500 million |
0.70% on the next $500 million | |
0.65% on such assets in excess of $1 billion | |
Sands Capital Emerging Markets Growth Fund | 1.15% |
Small Cap Growth Fund | 1.00% on the first $300 million |
0.95% on such assets in excess of $300 million | |
Sustainability and Impact Equity Fund | 0.75% on the first $200 million |
0.70% on the next $800 million | |
0.65% on such assets in excess of $1 billion |
The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):
Apex Capital Management, Inc. | Rockefeller & Co., Inc. |
Small Cap Growth Fund | Sustainability and Impact Equity Fund** |
Barrow, Hanley, Mewhinney & Strauss, LLC | Sands Capital Management, LLC |
International Value Fund | Sands Capital Emerging Markets Growth Fund |
ClearArc Capital, Inc. | Westfield Capital Management Company, L.P. |
Flexible Income Fund | Growth Opportunities Fund |
Fort Washington Investment Advisors, Inc.* | Mid Cap Growth Fund |
Focused Fund |
*Affiliate of the Advisor and wholly-owned subsidiary of Western & Southern.
**Effective May 4, 2015, Rockefeller & Co., Inc. became the sub-advisor of the Sustainability and Impact Equity Fund; prior to May 4, 2015, Navellier & Associates, Inc. was the sub-advisor.
The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.
The Advisor entered into an expense limitation agreement (the “Expense Limitation Agreement”) to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transactions and investment related expenses; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”; if any, and other extraordinary expenses not incurred in the ordinary course of business. The maximum 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 separately waive class-level expenses, advisory fees and administration fees, and to reimburse expenses in order to maintain expense limitations for the Funds:
78 |
Notes to Financial Statements (Unaudited) (Continued)
Institutional | ||||||||||||||||||||
Class A | Class B | Class C | Class Y | Class | ||||||||||||||||
Flexible Income Fund | 1.09 | % | — | 1.84 | % | 0.84 | % | 0.74 | % | |||||||||||
Focused Fund* | 1.20 | % | — | 1.95 | % | 0.95 | % | 0.83 | % | |||||||||||
Growth Opportunities Fund | 1.24 | % | — | 1.99 | % | 0.99 | % | 0.89 | % | |||||||||||
International Value Fund** | 1.34 | % | — | 2.09 | % | 1.09 | % | 0.99 | % | |||||||||||
Mid Cap Growth Fund | 1.39 | % | 2.14 | % | 2.14 | % | 1.14 | % | 0.99 | % | ||||||||||
Sands Capital Emerging Markets Growth Fund | — | — | — | 1.49 | % | 1.39 | % | |||||||||||||
Small Cap Growth Fund | 1.44 | % | — | 2.19 | % | 1.19 | % | 1.04 | % | |||||||||||
Sustainability and Impact Equity Fund*** | 1.24 | % | 1.99 | % | 1.99 | % | 0.99 | % | 0.89 | % |
*Prior to July 30, 2015, the expense limitation for Institutional Class shares was 0.80%.
**Prior to July 30, 2015, the expense limitations for Classes A, C, and Y shares were 1.39%, 2.14%, and 1.14%, respectively.
***Prior to May 1, 2015, the expense limitations for Classes A, B and C shares were 1.25%, 2.00% and 2.00%, respectively. Prior to May 4, 2015, the Sustainability and Impact Equity Fund did not issue Institutional Class shares.
These expense limitations will remain in effect for all Funds through at least July 29, 2016, but can be terminated by a vote of the Board if it deems the termination to be beneficial to the Fund’s shareholders.
During the six months ended September 30, 2015, the Advisor or its affiliates waived investment advisory fees and administration fees or reimbursed expenses, including distribution fees of the Funds, as follows:
Other | ||||||||||||||||
Investment | Operating | |||||||||||||||
Advisory | Administration | Expenses | ||||||||||||||
Fund | Fees Waived | Fees Waived | Reimbursed | Total | ||||||||||||
Flexible Income Fund | $ | 16,567 | $ | 254,276 | $ | 83,948 | $ | 354,791 | ||||||||
Focused Fund | — | 130,580 | 172,415 | 302,995 | ||||||||||||
Growth Opportunities Fund | — | 60,544 | 61,555 | 122,099 | ||||||||||||
International Value Fund | 67,550 | 82,281 | 50,223 | 200,054 | ||||||||||||
Mid Cap Growth Fund | — | — | 389 | 389 | ||||||||||||
Sands Capital Emerging Markets Growth Fund | — | 24,893 | 22,955 | 47,848 | ||||||||||||
Small Cap Growth Fund | — | 240,229 | 24,641 | 264,870 | ||||||||||||
Sustainability and Impact Equity Fund | — | 81,849 | 233,306 | 315,155 |
Under the terms of the Expense Limitation Agreement the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation or assumed expenses for the Funds. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount in effect at the time of waiver or reimbursement. As of September 30, 2015, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:
Expiration | Expiration | Expiration | Expiration | |||||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||||||
Fund | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||
Flexible Income Fund | $ | 560,578 | $ | 772,157 | $ | 506,352 | $ | 333,294 | $ | 2,172,381 | ||||||||||
Focused Fund | 590,230 | 712,383 | 502,116 | 146,567 | 1,951,296 | |||||||||||||||
Growth Opportunities Fund | 178,636 | 317,974 | 223,185 | 89,967 | 809,762 | |||||||||||||||
International Value Fund | 258,059 | 397,344 | 357,335 | 192,887 | 1,205,625 | |||||||||||||||
Sands Capital Emerging Markets Growth Fund | — | — | 119,351 | 47,848 | 167,199 | |||||||||||||||
Small Cap Growth Fund | 38,167 | 172,459 | 302,363 | 246,391 | 759,380 |
79 |
Notes to Financial Statements (Unaudited) (Continued)
Expiration | Expiration | Expiration | Expiration | |||||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||||||
Fund | 2016 | 2017 | 2018 | 2019 | Total | |||||||||||||||
Sustainability and Impact Equity Fund | 390,044 | 432,998 | 65,536 | 196,658 | 1,085,236 |
For the six months ended September 30, 2015, the Advisor may recoup fees subject to Board approval, from the Small Cap Growth Fund of $37,967.
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with, the SEC and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.
For its services, the Advisor’s annual administrative fee is:
0.145% on the first $20 billion of the aggregate average daily net assets;
0.11% on the next $10 billion of aggregate average daily net assets;
0.09% on the next $10 billion of aggregate average daily net assets; and
0.07% on the aggregate average daily net assets over $40 billion.
The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.
The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee 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.
The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary. Prior to December 1, 2014, the Funds reimbursed the Advisor up to $17 per sub-account maintained by the intermediary.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that are subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares. Under the Class B plan, each Fund offering Class B shares pays an annual fee of up to 1.00% of average daily net assets
80 |
Notes to Financial Statements (Unaudited) (Continued)
that are attributable to Class B shares. Under the Class C plan, each Fund offering Class C shares pays an annual fee of up to 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee).
UNDERWRITING AGREEMENT
The Underwriter is the Funds’ principal underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting Agreement between the Trust and the Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of Class A shares of the Funds listed below during the six months ended September 30, 2015:
Fund | Amount | |||
Flexible Income Fund | $ | 5,332 | ||
Focused Fund | 23,525 | |||
Growth Opportunities Fund | 3,043 | |||
International Value Fund | 604 | |||
Mid Cap Growth Fund | 23,692 | |||
Small Cap Growth Fund | 12,963 | |||
Sustainability and Impact Equity Fund | 9,661 |
In addition, the Underwriter collected CDSC on the redemption of Classes A, B, and C shares of the Funds listed below during the six months ended September 30, 2015:
Fund | Class A | Class B | Class C | |||||||||
Flexible Income Fund | $ | 26 | $ | 1,576 | $ | — | ||||||
Focused Fund | — | — | 123 | |||||||||
Growth Opportunities Fund | — | — | 44 | |||||||||
International Value Fund | — | — | 74 | |||||||||
Mid Cap Growth Fund | — | 153 | 235 | |||||||||
Small Cap Growth Fund | — | — | 226 | |||||||||
Sustainability and Impact Equity Fund | 2 | — | 865 |
AFFILIATED INVESTMENTS
Each Fund may have invested in the Touchstone Institutional Money Market Fund through June 19, 2015, subject to compliance with several conditions set forth in an exemptive order received by the Trust from the SEC. To the extent that the Funds were invested in the Touchstone Institutional Money Market Fund, the Advisor and Administrator were paid additional fees from the Touchstone Institutional Money Market Fund that were not waived or reimbursed.
A summary of each Fund’s investment, as applicable, in the Touchstone Institutional Money Market Fund for six months ended September 30, 2015, is as follows:
Share Activity | ||||||||||||||||||||||||
Balance | Balance | Value | ||||||||||||||||||||||
Fund | 03/31/15 | Purchases | Sales | 09/30/15 | Dividends | 09/30/15 | ||||||||||||||||||
Flexible Income Fund | 16,053,570 | 39,654,146 | (55,707,716 | ) | — | $ | 318 | $ | — | |||||||||||||||
Focused Fund | 24,293,946 | 20,022,210 | (44,316,156 | ) | — | 449 | — | |||||||||||||||||
Growth Opportunities Fund | 11,013,158 | 44,877,418 | (55,890,576 | ) | — | 178 | — | |||||||||||||||||
International Value Fund | 2,842,409 | 6,747,741 | (9,590,150 | ) | — | 43 | — | |||||||||||||||||
Mid Cap Growth Fund | 7,981,283 | 67,683,703 | (75,664,986 | ) | — | 341 | — | |||||||||||||||||
Sands Capital Emerging Markets Growth Fund | 6,137,187 | 4,025,586 | (10,162,773 | ) | — | 87 | — | |||||||||||||||||
Small Cap Growth Fund | 13,781,617 | 47,003,144 | (60,784,761 | ) | — | 378 | — | |||||||||||||||||
Sustainability and Impact Equity Fund | 3,692,824 | 221,018,167 | (224,710,991 | ) | — | 354 | — |
81 |
Notes to Financial Statements (Unaudited) (Continued)
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. It is each Fund’s policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid are as follows:
Flexible | ||||||||||||||||
Income Fund | Focused Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
From ordinary income | $ | 13,016,300 | $ | 12,579,476 | $ | 4,384,884 | $ | 5,340,485 |
Growth | International | Mid Cap | ||||||||||||||||||||||
Opportunities Fund | Value Fund | Growth Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
From ordinary income | $ | — | $ | 740,475 | $ | 3,787,190 | $ | 1,538,572 | $ | 30,998,259 | $ | 14,379,637 | ||||||||||||
From long-term capital gains | 32,371,941 | 10,193,027 | — | — | 68,535,176 | 61,442,947 | ||||||||||||||||||
Total distributions | $ | 32,371,941 | $ | 10,933,502 | $ | 3,787,190 | $ | 1,538,572 | $ | 99,533,435 | $ | 75,822,584 |
Sands Capital | Sustainability | |||||||||||||||||||
Emerging Markets | Small Cap | and Impact Equity | ||||||||||||||||||
Growth Fund | Growth Fund | Fund | ||||||||||||||||||
Period Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | ||||||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
From ordinary income | $ | — | $ | 2,738,627 | $ | 1,065,782 | $ | 4,739,291 | $ | 14,481,879 | ||||||||||
From long-term capital gains | — | 2,618,059 | 5,236,442 | 127,807,527 | 71,760,218 | |||||||||||||||
Total distributions | $ | — | $ | 5,356,686 | $ | 6,302,224 | $ | 132,546,818 | $ | 86,242,097 |
82 |
Notes to Financial Statements (Unaudited) (Continued)
The following information is computed on a tax basis for each item as of March 31, 2015:
Flexible | Growth | International | ||||||||||||||
Income | Focused | Opportunities | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 347,452,542 | $ | 1,003,245,212 | $ | 251,465,238 | $ | 116,073,403 | ||||||||
Gross unrealized appreciation | 8,402,313 | 190,993,803 | 67,635,612 | 11,926,265 | ||||||||||||
Gross unrealized depreciation | (4,123,952 | ) | (24,924,980 | ) | (4,802,009 | ) | (8,192,628 | ) | ||||||||
Net unrealized appreciation on investments | 4,278,361 | 166,068,823 | 62,833,603 | 3,733,637 | ||||||||||||
Net unrealized appreciation (depreciation) on futures contracts, foreign currency contracts and translation of other assets and liabilities denominated in foreign currency | (18,771 | ) | — | — | (11,913 | ) | ||||||||||
Post-October and Qualified Late-Year Losses | (1,968,176 | ) | — | (43,218 | ) | (440,396 | ) | |||||||||
Accumulated capital and other losses | (9,461,280 | ) | — | (2,396,967 | ) | (117,430,256 | ) | |||||||||
Other temporary differences | (175,778 | ) | — | — | — | |||||||||||
Undistributed ordinary income | — | 8,434,858 | — | 3,765,502 | ||||||||||||
Undistributed capital gains | — | 27,791,540 | 708,675 | — | ||||||||||||
Accumulated earnings (deficit) | $ | (7,345,644 | ) | $ | 202,295,221 | $ | 61,102,093 | $ | (110,383,426 | ) |
Sands Capital | ||||||||||||||||
Emerging | Sustainability | |||||||||||||||
Mid Cap | Markets | Small Cap | and Impact | |||||||||||||
Growth | Growth | Growth | Equity | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 647,536,658 | $ | 73,923,038 | $ | 392,479,313 | $ | 547,227,521 | ||||||||
Gross unrealized appreciation | 200,740,751 | 8,026,091 | 46,643,359 | 218,683,614 | ||||||||||||
Gross unrealized depreciation | (12,362,297 | ) | (4,232,169 | ) | (12,412,731 | ) | (2,298,615 | ) | ||||||||
Net unrealized appreciation on investments | 188,378,454 | 3,793,922 | 34,230,628 | 216,384,999 | ||||||||||||
Net unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currency | — | (2,519 | ) | — | — | |||||||||||
Post-October and Qualified Late-Year Losses | — | (6,086,914 | ) | — | — | |||||||||||
Accumulated capital and other losses | — | — | (1,618,166 | ) | — | |||||||||||
Undistributed ordinary income | 6,497,729 | — | 870,393 | 560,135 | ||||||||||||
Undistributed capital gains | 22,545,112 | — | 3,899,175 | 19,432,287 | ||||||||||||
Accumulated earnings (deficit) | $ | 217,421,295 | $ | (2,295,511 | ) | $ | 37,382,030 | $ | 236,377,421 |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, trust preferred securities, investments in passive foreign investment companies (“PFIC”) and regulated investment companies.
As of March 31, 2015, the Funds had the following capital loss carryforwards for federal income tax purposes:
No | No | |||||||||||||||||||||||
Short Term Expiring On | Expiration | Expiration | ||||||||||||||||||||||
Fund | 2017 | 2018 | 2019 | Short Term * | Long Term * | Total | ||||||||||||||||||
Flexible Income Fund | $ | — | $ | — | $ | 9,461,280 | $ | — | $ | — | $ | 9,461,280 | ||||||||||||
Growth Opportunities Fund | 1,733,973 | ** | 662,994 | ** | — | — | — | 2,396,967 | ||||||||||||||||
International Value Fund | 46,518,121 | 70,912,135 | — | — | — | 117,430,256 | ||||||||||||||||||
Small Cap Growth Fund | 1,618,166 | ** | — | — | — | — | 1,618,166 |
* The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act made changes to several tax rules impacting the Funds. The provisions of the Act first became effective for the Funds’ fiscal year ended March 31, 2012 and are applicable to all subsequent fiscal years. 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 may be utilized. Under
83 |
Notes to Financial Statements (Unaudited) (Continued)
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 up to eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.
** Future utilization 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, 2015, the Trust had the following federal tax costs resulting in net unrealized appreciation (depreciation) as follows:
Net | ||||||||||||||||
Gross | Gross | Unrealized | ||||||||||||||
Federal Tax | Unrealized | Unrealized | Appreciation | |||||||||||||
Fund | Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
Flexible Income Fund | $ | 365,861,789 | $ | 4,570,837 | $ | (7,811,902 | ) | $ | (3,241,065 | ) | ||||||
Focused Fund | 1,046,528,173 | 145,335,059 | (56,514,983 | ) | 88,820,076 | |||||||||||
Growth Opportunities Fund | 251,379,493 | 36,397,774 | (18,877,060 | ) | 17,520,714 | |||||||||||
International Value Fund | 112,071,040 | 9,163,671 | (18,675,354 | ) | (9,511,683 | ) | ||||||||||
Mid Cap Growth Fund | 649,819,959 | 108,456,163 | (41,666,297 | ) | 66,789,866 | |||||||||||
Sands Capital Emerging Markets Growth Fund | 76,367,617 | 3,344,048 | (8,743,339 | ) | (5,399,291 | ) | ||||||||||
Small Cap Growth Fund | 491,428,648 | 38,846,319 | (39,766,183 | ) | (919,864 | ) | ||||||||||
Sustainability and Impact Equity Fund | 319,626,534 | 7,894,107 | (40,945,725 | ) | (33,051,618 | ) |
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.
7. Risks Associated with Foreign Investments
Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
8. Risks Associated with Credit
An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.
84 |
Notes to Financial Statements (Unaudited) (Continued)
9. Risks Associated with Interest Rate Changes
As interest rates rise, the value of fixed-income securities a Fund owns will likely decrease. The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. There may be less governmental intervention in the securities markets in the near future. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.
10. Risk Associated with Concentration
Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility in the Funds’ NAVs and magnified effect on the total return.
11. Subsequent Events
Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date financial statements were issued. There were no subsequent events that necessitated recognition or disclosure on the Funds’ financial statement.
85 |
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 is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30 is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.
Quarterly Portfolio Disclosure
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; or (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; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2015 through September 30, 2015).
Actual Expenses
The first line of the table below for each share class of a Fund 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, 2015” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below for each share class of a Fund provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line for each share class of a Fund in the table below is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
86 |
Other Items (Unaudited) (Continued)
Schedule of Shareholder Expenses (continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
September 30, | April 1, | September 30, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2015* | |||||||||||||||
Touchstone Flexible Income Fund | ||||||||||||||||||
Class A | Actual | 1.09 | % | $ | 1,000.00 | $ | 1,000.50 | $ | 5.45 | |||||||||
Class A | Hypothetical | 1.09 | % | $ | 1,000.00 | $ | 1,019.55 | $ | 5.50 | |||||||||
Class C | Actual | 1.84 | % | $ | 1,000.00 | $ | 996.90 | $ | 9.19 | |||||||||
Class C | Hypothetical | 1.84 | % | $ | 1,000.00 | $ | 1,015.80 | $ | 9.27 | |||||||||
Class Y | Actual | 0.84 | % | $ | 1,000.00 | $ | 1,001.70 | $ | 4.20 | |||||||||
Class Y | Hypothetical | 0.84 | % | $ | 1,000.00 | $ | 1,020.80 | $ | 4.24 | |||||||||
Institutional Class | Actual | 0.74 | % | $ | 1,000.00 | $ | 1,003.20 | $ | 3.71 | |||||||||
Institutional Class | Hypothetical | 0.74 | % | $ | 1,000.00 | $ | 1,021.30 | $ | 3.74 | |||||||||
Touchstone Focused Fund | ||||||||||||||||||
Class A | Actual | 1.20 | % | $ | 1,000.00 | $ | 946.80 | $ | 5.84 | |||||||||
Class A | Hypothetical | 1.20 | % | $ | 1,000.00 | $ | 1,019.00 | $ | 6.06 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 943.30 | $ | 9.47 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.25 | $ | 9.82 | |||||||||
Class Y | Actual | 0.93 | % | $ | 1,000.00 | $ | 948.10 | $ | 4.53 | |||||||||
Class Y | Hypothetical | 0.93 | % | $ | 1,000.00 | $ | 1,020.35 | $ | 4.70 | |||||||||
Institutional Class | Actual | 0.83 | % | $ | 1,000.00 | $ | 948.50 | $ | 4.04 | |||||||||
Institutional Class | Hypothetical | 0.83 | % | $ | 1,000.00 | $ | 1,020.85 | $ | 4.19 | |||||||||
Touchstone Growth Opportunities Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 887.60 | $ | 5.85 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.80 | $ | 6.26 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 884.20 | $ | 9.37 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.05 | $ | 10.02 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 888.50 | $ | 4.67 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.00 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 889.30 | $ | 4.20 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.55 | $ | 4.50 | |||||||||
Touchstone International Value Fund | ||||||||||||||||||
Class A | Actual | 1.38 | % | $ | 1,000.00 | $ | 896.50 | $ | 6.54 | |||||||||
Class A | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.10 | $ | 6.96 | |||||||||
Class C | Actual | 2.13 | % | $ | 1,000.00 | $ | 893.20 | $ | 10.08 | |||||||||
Class C | Hypothetical | 2.13 | % | $ | 1,000.00 | $ | 1,014.35 | $ | 10.73 | |||||||||
Class Y | Actual | 1.13 | % | $ | 1,000.00 | $ | 897.70 | $ | 5.36 | |||||||||
Class Y | Hypothetical | 1.13 | % | $ | 1,000.00 | $ | 1,019.35 | $ | 5.70 | |||||||||
Institutional Class | Actual | 0.99 | % | $ | 1,000.00 | $ | 897.90 | $ | 4.70 | |||||||||
Institutional Class | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.00 |
87 |
Other Items (Unaudited) (Continued)
Schedule of Shareholder Expenses (continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
September 30, | April 1, | September 30, | September 30, | |||||||||||||||
2015 | 2015 | 2015 | 2015* | |||||||||||||||
Touchstone Mid Cap Growth Fund | ||||||||||||||||||
Class A | Actual | 1.31 | % | $ | 1,000.00 | $ | 885.10 | $ | 6.17 | |||||||||
Class A | Hypothetical | 1.31 | % | $ | 1,000.00 | $ | 1,018.45 | $ | 6.61 | |||||||||
Class B | Actual | 2.14 | % | $ | 1,000.00 | $ | 880.90 | $ | 10.06 | |||||||||
Class B | Hypothetical | 2.14 | % | $ | 1,000.00 | $ | 1,014.30 | $ | 10.78 | |||||||||
Class C | Actual | 2.05 | % | $ | 1,000.00 | $ | 881.70 | $ | 9.64 | |||||||||
Class C | Hypothetical | 2.05 | % | $ | 1,000.00 | $ | 1,014.75 | $ | 10.33 | |||||||||
Class Y | Actual | 1.05 | % | $ | 1,000.00 | $ | 886.00 | $ | 4.95 | |||||||||
Class Y | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.75 | $ | 5.30 | |||||||||
Institutional Class | Actual | 0.94 | % | $ | 1,000.00 | $ | 886.90 | $ | 4.43 | |||||||||
Institutional Class | Hypothetical | 0.94 | % | $ | 1,000.00 | $ | 1,020.30 | $ | 4.75 | |||||||||
Touchstone Sands Capital Emerging Markets Growth | ||||||||||||||||||
Fund | ||||||||||||||||||
Class Y | Actual | 1.49 | % | $ | 1,000.00 | $ | 847.60 | $ | 6.88 | |||||||||
Class Y | Hypothetical | 1.49 | % | $ | 1,000.00 | $ | 1,017.55 | $ | 7.52 | |||||||||
Class I | Actual | 1.39 | % | $ | 1,000.00 | $ | 847.60 | $ | 6.42 | |||||||||
Class I | Hypothetical | 1.39 | % | $ | 1,000.00 | $ | 1,018.05 | $ | 7.01 | |||||||||
Touchstone Small Cap Growth Fund | ||||||||||||||||||
Class A | Actual | 1.44 | % | $ | 1,000.00 | $ | 915.80 | $ | 6.90 | |||||||||
Class A | Hypothetical | 1.44 | % | $ | 1,000.00 | $ | 1,017.80 | $ | 7.26 | |||||||||
Class C | Actual | 2.19 | % | $ | 1,000.00 | $ | 912.10 | $ | 10.47 | |||||||||
Class C | Hypothetical | 2.19 | % | $ | 1,000.00 | $ | 1,014.05 | $ | 11.03 | |||||||||
Class Y | Actual | 1.18 | % | $ | 1,000.00 | $ | 916.30 | $ | 5.65 | |||||||||
Class Y | Hypothetical | 1.18 | % | $ | 1,000.00 | $ | 1,019.10 | $ | 5.96 | |||||||||
Institutional Class | Actual | 1.04 | % | $ | 1,000.00 | $ | 918.10 | $ | 4.99 | |||||||||
Institutional Class | Hypothetical | 1.04 | % | $ | 1,000.00 | $ | 1,019.80 | $ | 5.25 | |||||||||
Touchstone Sustainability and Impact Equity Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 869.90 | $ | 5.80 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.80 | $ | 6.26 | |||||||||
Class B | Actual | 1.99 | % | $ | 1,000.00 | $ | 866.60 | $ | 9.29 | |||||||||
Class B | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.05 | $ | 10.02 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 866.80 | $ | 9.29 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.05 | $ | 10.02 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 871.00 | $ | 4.63 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.00 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 871.00 | $ | 4.16 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.55 | $ | 4.50 |
* 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).
88 |
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We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
• | We collect only the information we need to service your account and administer our business. |
• | We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information. |
• | We make every effort to ensure the accuracy of your information. |
We Collect the Following Nonpublic Personal Information About You:
• | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and |
• | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information. |
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• | We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business. |
• | We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information. |
• | We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document. |
• | We will not sell your personal information to anyone. |
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Investment Trust, Touchstone Strategic Trust, Touchstone Tax-Free Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.,* and W&S Brokerage Services, Inc.
* Touchstone Securities, Inc. serves as the underwriter to the Touchstone Funds.
A Member of Western & Southern Financial Group®
The Privacy Protection Policy is not part of the Semi-Annual Report.
91 |
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
TSF-54-TST-SAR-1510
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 11/30/2015
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 11/30/2015
By (Signature and Title)* /s/ Terrie A. Wiedenheft
Terrie A. Wiedenheft, Controller and Treasurer
(principal financial officer)
Date 11/30/2015
* Print the name and title of each signing officer under his or her signature.