Touchstone Large Company Growth Fund NCSRS Certified semi-annual shareholder report (management investment company)

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 – December Funds

(Exact name of registrant as specified in charter)

303 Broadway, Suite 1100

Cincinnati, Ohio 45202-4203

(Address of principal executive offices) (Zip code)

Jill T. McGruder

303 Broadway, Suite 1100

Cincinnati, Ohio 45202-4203

(Name and address of agent for service)

Registrant's telephone number, including area code: 800-638-8194

Date of fiscal year end: December 31

Date of reporting period: June 30, 2017

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

June 30, 2017

(Unaudited)

Semi-Annual Report

Touchstone Strategic Trust

Touchstone Dynamic Equity Fund

Touchstone Controlled Growth with Income Fund

Touchstone Dynamic Diversified Income Fund

Touchstone Dynamic Global Allocation Fund

Table of Contents

	Page
Tabular Presentation of Portfolios of Investments	3
Portfolios of Investments:
Touchstone Dynamic Equity Fund	4
Touchstone Controlled Growth with Income Fund	8
Touchstone Dynamic Diversified Income Fund	9
Touchstone Dynamic Global Allocation Fund	10
Statements of Assets and Liabilities	11 - 12
Statements of Operations	13
Statements of Changes in Net Assets	14 - 15
Statements of Changes in Net Assets - Capital Stock Activity	16 - 17
Statement of Cash Flows	18
Financial Highlights	19 - 28
Notes to Financial Statements	29 - 44
Other Items	45 - 46
Privacy Protection Policy	47

This report identifies the Funds' investments on June 30, 2017. 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.

Tabular Presentation of Portfolios of Investments (Unaudited)

June 30, 2017

The tables below provide each Fund’s sector allocation. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.

Touchstone Dynamic Equity Fund
Sector Allocation*	(% of Net Assets)
Long Positions
Common Stocks
Information Technology		26.1	%
Health Care		21.6
Consumer Discretionary		15.7
Financials		13.8
Industrials		11.7
Consumer Staples		11.5
Energy		6.7
Utilities		4.2
Real Estate		4.1
Materials		1.6
Telecommunication Services		1.2
Short-Term Investment Fund		2.4
Other Assets/Liabilities (Net)		0.4
		121.0	%
Short Positions
Common Stocks
Health Care		(5.0	)%
Information Technology		(3.7	)
Consumer Staples		(3.1	)
Consumer Discretionary		(2.6	)
Financials		(2.2	)
Utilities		(2.0	)
Industrials		(0.8	)
Energy		(0.3	)
Written Call and Put Options		(1.3	)
		(21.0	)%
Total		100.0	%

Touchstone Controlled Growth with Income Fund
Sector Allocation	(% of Net Assets)
Affiliated Mutual Funds
Fixed Income Funds		47.2	%
Alternative Funds		46.8
Equity Funds		5.0
Short-Term Investment Fund		1.0
Other Assets/Liabilities (Net)		0.0
Total		100.0	%

Touchstone Dynamic Diversified Income Fund
Sector Allocation	(% of Net Assets)
Affiliated Mutual Funds
Fixed Income Funds		61.1	%
Equity Funds		17.1
Exchange Traded Funds		15.3
Exchange Traded Notes		5.6
Short-Term Investment Fund		1.0
Other Assets/Liabilities (Net)		(0.1	)
Total		100.0	%

Touchstone Dynamic Global Allocation Fund
Sector Allocation	(% of Net Assets)
Affiliated Mutual Funds
Equity Funds		47.5	%
Fixed Income Funds		29.4
Alternative Fund		3.9
Exchange Traded Funds		18.4
Short-Term Investment Fund		1.0
Other Assets/Liabilities (Net)		(0.2	)
Total		100.0	%

* Sector classifications are based upon the Global Industry Classification Standard (GICS^®).

Portfolio of Investments

Touchstone Dynamic Equity Fund – June 30, 2017 (Unaudited)

			Market
	Shares		Value

Common Stocks ^†† — 118.2%

Information Technology — 26.1%
Accenture PLC (Ireland) - Class A		31,490	$	3,894,683
Adobe Systems, Inc.*		28,381		4,014,209
Apple, Inc.		7,558		1,088,503
Booz Allen Hamilton Holding Corp.		35,383		1,151,363
Broadcom Ltd.		6,145		1,432,094
Cars.com, Inc.*		3,927		104,576
CDW Corp.		16,639		1,040,437
Cisco Systems, Inc.		40,718		1,274,473
CommScope Holding Co., Inc.*		5,059		192,394
DXC Technology Co.		9,366		718,560
eBay, Inc.*		66,721		2,329,897
Electronic Arts, Inc.*		22,038		2,329,857
Facebook, Inc. - Class A*		20,613		3,112,151
Hewlett Packard Enterprise Co.		120,789		2,003,890
HP, Inc.		59,811		1,045,496
Keysight Technologies, Inc.*		27,645		1,076,220
Micron Technology, Inc.*		2,454		73,276
Microsoft Corp.		5,869		404,550
Skyworks Solutions, Inc.		13,777		1,321,903
Texas Instruments, Inc.		36,939		2,841,717
Versum Materials, Inc.		1,515		49,237
Yelp, Inc.*		4,650		139,593
				31,639,079

Health Care — 21.6%
Abbott Laboratories		28,659		1,393,114
AbbVie, Inc.		30,328		2,199,083
Amgen, Inc.		6,391		1,100,722
Baxter International, Inc.		17,435		1,055,515
Biogen, Inc.*		3,180		862,925
Celgene Corp.*		9,797		1,272,336
Express Scripts Holding Co.*		27,540		1,758,154
Gilead Sciences, Inc.		16,873		1,194,271
HCA Holdings, Inc.*		22,927		1,999,234
IDEXX Laboratories, Inc.*		3,842		620,176
Johnson & Johnson		8,519		1,126,978
McKesson Corp.		3,381		556,310
Merck & Co., Inc.		71,628		4,590,639
Pfizer, Inc.		10,121		339,964
UnitedHealth Group, Inc.		23,344		4,328,444
Vertex Pharmaceuticals, Inc.*		13,196		1,700,569
				26,098,434

Consumer Discretionary — 15.7%
Amazon.com, Inc.*		3,526		3,413,168
Best Buy Co., Inc.		6,151		352,637
Burlington Stores, Inc.*		25,712		2,365,247
Discovery Communications, Inc. - Class C*		2,061		51,958
Domino's Pizza, Inc.		91		19,249
Home Depot, Inc. (The)		12,038		1,846,629
Live Nation Entertainment, Inc.*		383		13,348
Lowe's Cos., Inc.		27,889		2,162,234
Netflix, Inc.*		1,146		171,224
TEGNA, Inc.		11,781		169,764
Time Warner, Inc.		14,688		1,474,822
Ulta Beauty, Inc.*		6,458		1,855,642
Walt Disney Co. (The)		31,663		3,364,194
Yum China Holdings, Inc.*		44,983		1,773,680
				19,033,796

Financials — 13.8%
Allstate Corp. (The)		2,319		205,092
Ally Financial, Inc.		18,017		376,555
Bank of America Corp.		208,123		5,049,064
Bank of New York Mellon Corp. (The)		44,500		2,270,390
Berkshire Hathaway, Inc. - Class B*		4,896		829,236
CBOE Holdings, Inc.		3,387		309,572
Citigroup, Inc.		5,809		388,506
Discover Financial Services		12,314		765,808
FNF Group		4,854		217,605
PacWest Bancorp		21,537		1,005,778
Popular, Inc. (Puerto Rico)		5,999		250,218
Progressive Corp. (The)		16,095		709,629
S&P Global, Inc.		2,176		317,674
Santander Consumer USA Holdings, Inc.*		22,712		289,805
SLM Corp.*		2,664		30,636
Synchrony Financial		108,539		3,236,633
White Mountains Insurance Group Ltd.		535		464,717
				16,716,918

Industrials — 11.7%
3M Co.		12,859		2,677,115
Arconic, Inc.		43,335		981,538
Boeing Co. (The)		8,485		1,677,909
Cummins, Inc.		5,664		918,814
Expeditors International of Washington, Inc.		24,994		1,411,661
FedEx Corp.		12,089		2,627,302
HD Supply Holdings, Inc.*		17,748		543,621
Southwest Airlines Co.		27,262		1,694,061
Spirit AeroSystems Holdings, Inc. - Class A		10,442		605,009
United Continental Holdings, Inc.*		2,216		166,754
Waste Management, Inc.		11,514		844,552
				14,148,336

Consumer Staples — 11.5%
Altria Group, Inc.		26,594		1,980,455
Archer-Daniels-Midland Co.		15,649		647,556
Bunge Ltd.		21,954		1,637,768
Conagra Brands, Inc.		27,369		978,715
Costco Wholesale Corp.		473		75,647
Kroger Co. (The)		2,267		52,866
PepsiCo, Inc.		18,607		2,148,922
Philip Morris International, Inc.		28,514		3,348,969
US Foods Holding Corp.*		80,885		2,201,690
Walgreens Boots Alliance, Inc.		11,034		864,073
				13,936,661

Energy — 6.7%
Anadarko Petroleum Corp.		9,912		449,410

Touchstone Dynamic Equity Fund (Unaudited) (Continued)

				Market
	Shares			Value

Common Stocks ^†† — 118.2% (Continued)

Energy — (Continued)
Baker Hughes, Inc.		17,966		$	979,327
ConocoPhillips		42,659			1,875,290
Devon Energy Corp.		16,000			511,520
EOG Resources, Inc.		8,904			805,990
Kinder Morgan, Inc.		32,803			628,505
Marathon Petroleum Corp.		18,869			987,415
QEP Resources, Inc.*		134,610			1,359,561
Rowan Companies PLC - Class A*		35,743			366,008
World Fuel Services Corp.		3,408			131,038
					8,094,064

Utilities — 4.2%
Alliant Energy Corp.		25,713			1,032,891
Exelon Corp.		105,222			3,795,358
PG&E Corp.		3,485			231,299
					5,059,548

Real Estate — 4.1%
CBRE Group, Inc. - Class A, REIT*		78,504			2,857,546
Colony NorthStar, Inc. - Class A, REIT		56,294			793,182
Lamar Advertising Co.- Class A, REIT		7,180			528,233
Rayonier, Inc., REIT		17,837			513,170
Realogy Holdings Corp.		10,129			328,686
					5,020,817

Materials — 1.6%
Freeport-McMoRan, Inc.*		33,507			402,419
Huntsman Corp.		37,317			964,271
Monsanto Co.		2,168			256,604
Southern Copper Corp.		6,252			216,507
Tahoe Resources, Inc. (Canada)		6,819			58,780
					1,898,581

Telecommunication Services — 1.2%
Level 3 Communications, Inc.*		4,605			273,076
Sprint Corp.*		56,825			466,533
Verizon Communications, Inc.		16,782			749,484
					1,489,093
Total Common Stocks				$	143,135,327

Short-Term Investment Fund — 2.4%
Dreyfus Government Cash
Management, Institutional Shares, 0.91%^∞Ω		2,931,187			2,931,187

Total Long Positions
(Cost $142,029,375)				$	146,066,514

Securities Sold Short — (19.7%)

Common Stocks — (19.7%)

Health Care — (5.0%)
Acadia Healthcare Co., Inc.*		(21,091	)		(1,041,474	)
Agios Pharmaceuticals, Inc.*		(8,293	)		(426,675	)
Alnylam Pharmaceuticals, Inc.*		(29,519	)		(2,354,435	)
Bristol-Myers Squibb Co.		(7,274	)		(405,307	)
Endo International PLC (Ireland)*		(104,618	)		(1,168,583	)
Envision Healthcare Corp.*		(7,712	)		(483,311	)
Intercept Pharmaceuticals, Inc.*		(985	)		(119,254	)
Ionis Pharmaceuticals, Inc.*		(590	)		(30,013	)
Premier, Inc. - Class A*		(1,424	)		(51,264	)
					(6,080,316	)

Information Technology — (3.7%)
Cypress Semiconductor Corp.		(30,845	)		(421,034	)
FireEye, Inc.*		(48,647	)		(739,921	)
Nuance Communications, Inc.*		(80,133	)		(1,395,116	)
Palo Alto Networks, Inc.*		(13,610	)		(1,821,154	)
Zynga, Inc. - Class A*		(17,710	)		(64,464	)
					(4,441,689	)

Consumer Staples — (3.1%)
Casey's General Stores, Inc.		(21,589	)		(2,312,398	)
Coca-Cola Co. (The)		(2,410	)		(108,088	)
JM Smucker Co. (The)		(10,820	)		(1,280,331	)
					(3,700,817	)

Consumer Discretionary — (2.6%)
Adient PLC (Ireland)		(4,943	)		(323,173	)
AutoZone, Inc.*		(118	)		(67,314	)
Brinker International, Inc.		(9,891	)		(376,847	)
Dunkin' Brands Group, Inc.		(11,907	)		(656,314	)
Groupon, Inc.*		(73,462	)		(282,094	)
L Brands, Inc.		(14,246	)		(767,717	)
Tempur Sealy International, Inc.*		(13,296	)		(709,873	)
					(3,183,332	)

Financials — (2.2%)
Interactive Brokers Group, Inc. - Class A		(67,166	)		(2,513,352	)
New York Community Bancorp, Inc.		(8,103	)		(106,392	)
					(2,619,744	)

Utilities — (2.0%)
FirstEnergy Corp.		(85,197	)		(2,484,345	)

Industrials — (0.8%)
Chicago Bridge & Iron Co. NV (Netherlands)		(19,619	)		(387,083	)
Pitney Bowes, Inc.		(38,364	)		(579,296	)
					(966,379	)

Energy — (0.3%)
Kosmos Energy Ltd.*		(66,596	)		(426,882	)
Total Common Stocks				$	(23,903,504	)
Total Securities Sold Short
(Proceeds $22,611,637)				$	(23,903,504	)

Touchstone Dynamic Equity Fund (Unaudited) (Continued)

	Number
	of			Market
	Contracts			Value

Written Options — (1.3%)

Call Options — (1.3%)
Dow Jones Industrial Average Chicago
Board Options Exchange
July 2017
Strike Price $221		(1,283	)	$	(8,981	)
Russell 2000 Index
August 2017
Strike Price $1,500		(22	)		(4,752	)
Russell 2000 Index
September 2017
Strike Price $1,550		(50	)		(11,000	)
S&P 500 Index
July 2017
Strike Price $2,345		(25	)		(221,000	)
S&P 500 Index
July 2017
Strike Price $2,365		(125	)		(858,250	)
S&P 500 Index
July 2017
Strike Price $2,370		(35	)		(220,500	)
S&P 500 Index
July 2017
Strike Price $2,430		(30	)		(58,800	)
S&P 500 Index
July 2017
Strike Price $2,430		(31	)		(36,890	)
S&P 500 Index
July 2017
Strike Price $2,440		(33	)		(11,550	)
S&P 500 Index
July 2017
Strike Price $2,440		(61	)		(64,355	)
S&P 500 Index
September 2017
Strike Price $2,580		(35	)		(3,850	)
Total Call Options				$	(1,499,928	)

Put Options — (0.0%)
S&P 500 Index
July 2017
Strike Price $2,420		(10	)		(18,550	)

Total Written Options
(Premiums received $1,693,474)				$	(1,518,478	)

Total —99.6%				$	120,644,532

Other Assets in Excess of Liabilities — 0.4%					459,338

Net Assets — 100.0%				$	121,103,870

Non-income producing security.

^††

All or a portion of these securities are held as collateral for securities sold short and written options. The total value of the securities held as collateral as of June 30, 2017 was $143,135,327.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of June 30, 2017.

Portfolio Abbreviations:

PLC - Public Limited Company

REIT - Real Estate Investment Trust

Other Information:

The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.

	*Valuation inputs at Reporting Date:*
Description	Level 1			Level 2		Level 3		Total

Assets:
Long Positions
Common Stocks	$	143,135,327		$	—	$	—	$	143,135,327
Short-Term Investment Fund		2,931,187			—		—		2,931,187
Total Assets	$	146,066,514		$	—	$	—	$	146,066,514

Liabilities:
Securities Sold Short
Common Stocks	$	(23,903,504	)	$	—	$	—	$	(23,903,504	)
Other Financial Instruments
Written Options
Equity Contracts		(1,518,478	)		—		—		(1,518,478	)
Total Liabilities	$	(25,421,982	)	$	—	$	—	$	(25,421,982	)
Total	$	120,644,532		$	—	$	—	$	120,644,532

Touchstone Dynamic Equity Fund (Unaudited) (Continued)

Transactions in written options for the period ended June 30, 2017:

	Number of			Premiums
	Contracts			Received
Beginning of Period, December 31, 2016		658		$	1,530,905
Call Options Written		4,598			9,846,770
Put Options Written		156			277,566
Call Options Closed		(2,633	)		(9,179,255	)
Put Options Closed		(49	)		(99,971	)
Call Options Expired		(871	)		(467,715	)
Put Options Expired		(119	)		(214,826	)
End of Period, June 30, 2017		1,740		$	1,693,474

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Controlled Growth with Income Fund – June 30, 2017 (Unaudited)

			Market
	Shares		Value

Affiliated Mutual Funds^∞ — 99.0%

Fixed Income Funds — 47.2%
Touchstone Credit Opportunities Fund		627,816	$	6,535,569
Touchstone Flexible Income Fund		848,683		9,276,106
Touchstone High Yield Fund		269,486		2,309,492
				18,121,167

Alternative Funds — 46.8%
Touchstone Arbitrage Fund		926,245		9,623,681
Touchstone Dynamic Equity Fund		536,601		8,349,511
				17,973,192

Equity Funds — 5.0%
Touchstone Focused Fund		44,373		1,923,567
Total Affiliated Mutual Funds			$	38,017,926

Short-Term Investment Fund — 1.0%
Dreyfus Government Cash Management, Institutional Shares, 0.91%^∞Ω		399,922		399,922

Total Investment Securities —100.0%
(Cost $37,438,113)			$	38,417,848

Other Assets in Excess of Liabilities — 0.0%				1,919

Net Assets — 100.0%			$	38,419,767

All affiliated funds are invested in the Institutional Class, unless otherwise indicated. The financial statements of the underlying funds can be found on the SEC website.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of June 30, 2017.

Other Information:

	*Valuation inputs at Reporting Date:*
Description	Level 1		Level 2		Level 3		Total

Affiliated Mutual Funds	$	38,017,926	$	—	$	—	$	38,017,926
Short-Term Investment Fund		399,922		—		—		399,922
Total	$	38,417,848	$	—	$	—	$	38,417,848

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Dynamic Diversified Income Fund – June 30, 2017 (Unaudited)

			Market
	Shares		Value

Affiliated Mutual Funds^∞ — 78.2%

Fixed Income Funds — 61.1%
Touchstone Credit Opportunities Fund		1,346,295	$	14,014,931
Touchstone Flexible Income Fund		554,883		6,064,876
Touchstone High Yield Fund		856,209		7,337,715
Touchstone Total Return Bond Fund		963,143		9,756,644
				37,174,166

Equity Funds — 17.1%
Touchstone International Value Fund		323,787		2,428,402
Touchstone Premium Yield Equity Fund, Class Y		527,354		4,856,932
Touchstone Value Fund		307,071		3,113,695
				10,399,029
Total Affiliated Mutual Funds			$	47,573,195

Exchange Traded Funds — 15.3%
iShares International Select Dividend ETF		38,430		1,257,430
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF		131,690		2,487,624
Vanguard Emerging Markets Government Bond ETF		15,270		1,223,127
Vanguard Global ex-U.S. Real Estate ETF		22,430		1,261,687
Vanguard REIT ETF		29,230		2,432,813
WisdomTree Emerging Markets High Dividend ETF		14,800		606,652
Total Exchange Traded Funds			$	9,269,333

Exchange Traded Notes — 5.6%
JPMorgan Alerian MLP Index ETN		113,715		3,377,335

Short-Term Investment Fund — 1.0%
Dreyfus Government Cash Management, Institutional Shares, 0.91%^∞Ω		627,082		627,082

Total Investment Securities —100.1%
(Cost $59,507,150)			$	60,846,945

Liabilities in Excess of Other Assets — (0.1%)				(37,172	)

Net Assets — 100.0%			$	60,809,773

All affiliated funds are invested in the Institutional Class, unless otherwise indicated. The financial statements of the underlying funds can be found on the SEC website.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of June 30, 2017.

Portfolio Abbreviations:

ETF - Exchange Traded Fund

ETN - Exchange Traded Notes

MLP - Master Limited Partnership

REIT - Real Estate Investment Trust

Other Information:

	*Valuation inputs at Reporting Date:*
Description	Level 1		Level 2		Level 3		Total

Affiliated Mutual Funds	$	47,573,195	$	—	$	—	$	47,573,195
Exchange Traded Funds		9,269,333		—		—		9,269,333
Exchanged Traded Notes		3,377,335		—		—		3,377,335
Short-Term Investment Fund		627,082		—		—		627,082
Total	$	60,846,945	$	—	$	—	$	60,846,945

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Dynamic Global Allocation Fund – June 30, 2017 (Unaudited)

			Market
	Shares		Value

Affiliated Mutual Funds^∞ — 80.8%

Equity Funds — 47.5%
Touchstone Growth Opportunities Fund		108,124	$	3,549,720
Touchstone International Growth Fund		792,672		9,210,846
Touchstone International Small Cap Fund		140,006		2,423,504
Touchstone International Value Fund		1,612,333		12,092,498
Touchstone Mid Cap Fund		157,091		4,563,504
Touchstone Sands Capital Emerging Markets Growth Fund*		300,629		3,505,333
Touchstone Sands Capital Institutional Growth Fund		269,065		6,002,840
Touchstone Small Cap Value Opportunities Fund		123,355		2,232,733
Touchstone Value Fund		1,158,858		11,750,821
				55,331,799

Fixed Income Funds — 29.4%
Touchstone Credit Opportunities Fund		418,164		4,353,090
Touchstone High Yield Fund		401,734		3,442,862
Touchstone Total Return Bond Fund		2,152,509		21,804,919
Touchstone Ultra Short Duration Fixed Income Fund		494,966		4,603,184
				34,204,055

Alternative Fund — 3.9%
Touchstone Dynamic Equity Fund		293,315		4,563,976
Total Affiliated Mutual Funds			$	94,099,830

Exchange Traded Funds — 18.4%
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF		127,100		2,400,919
Vanguard FTSE Emerging Markets ETF		87,945		3,590,794
Vanguard Global ex-U.S. Real Estate ETF		21,596		1,214,775
Vanguard REIT ETF		28,280		2,353,744
Vanguard Total International Bond ETF		217,910		11,845,588
Total Exchange Traded Funds			$	21,405,820

Short-Term Investment Fund — 1.0%
Dreyfus Government Cash Management, Institutional Shares, 0.91%^∞Ω		1,182,812		1,182,812

Total Investment Securities —100.2%
(Cost $112,886,004)			$	116,688,462

Liabilities in Excess of Other Assets — (0.2%)				(230,529	)

Net Assets — 100.0%			$	116,457,933

Non-income producing security.

All affiliated funds are invested in the Institutional Class, unless otherwise indicated. The financial statements of the underlying funds can be found on the SEC website.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of June 30, 2017.

Portfolio Abbreviations:

ETF - Exchange Traded Fund

REIT - Real Estate Investment Trust

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total

Affiliated Mutual Funds	$	94,099,830	$	—	$	—	$	94,099,830
Exchange Traded Funds		21,405,820		—		—		21,405,820
Short-Term Investment Fund		1,182,812		—		—		1,182,812
Total	$	116,688,462	$	—	$	—	$	116,688,462

See accompanying Notes to Financial Statements.

Statements of Assets and Liabilities

June 30, 2017 (Unaudited)

				Touchstone		Touchstone			Touchstone
	Touchstone			Controlled		Dynamic			Dynamic
	Dynamic			Growth		Diversified			Global
	Equity			with Income		Income			Allocation
	Fund			Fund		Fund			Fund
Assets
Investments, at cost	$	142,029,375		$	37,438,113	$	59,507,150		$	112,886,004
Affiliated securities, at market value	$	—		$	38,017,926	$	47,573,195		$	94,099,830
Non-affiliated securities, at market value		146,066,514			399,922		13,273,750			22,588,632
Investments, at market value	$	146,066,514		$	38,417,848	$	60,846,945		$	116,688,462
Cash		—			4,833		—			—
Dividends and interest receivable		128,343			—		6,235			6,004
Receivable for capital shares sold		120,936			33,374		188,887			22,902
Receivable for investments sold		936,717			—		12,290			454,830
Receivable from Investment Advisor		—			2,055		—			—
Tax reclaim receivable		207			—		—			—
Other assets		46,525			10,731		10,660			10,962
Total Assets		147,299,242			38,468,841		61,065,017			117,183,160

Liabilities
Bank overdrafts		—			—		12,287			454,830
Cash deposits pledged at prime broker		523,775			—		—			—
Written options, at market value ^(A)		1,518,478			—		—			—
Securities sold short ^(B)		23,903,504			—		—			—
Dividend and interest payable on securities sold short		8,989			—		—			—
Payable for capital shares redeemed		61,465			8,908		180,582			153,700
Payable to cover options		—			4,799		—			—
Payable to Investment Advisor		84,953			—		3,681			11,606
Payable to other affiliates		22,836			4,663		15,261			29,461
Payable to Trustees		3,855			3,855		3,855			3,855
Payable for professional services		12,700			10,638		12,091			12,578
Payable to Transfer Agent		39,052			10,407		19,532			48,683
Payable for reports to shareholders		12,213			5,782		7,641			10,213
Other accrued expenses and liabilities		3,552			22		314			301
Total Liabilities		26,195,372			49,074		255,244			725,227

Net Assets	$	121,103,870		$	38,419,767	$	60,809,773		$	116,457,933

Net assets consist of:
Paid-in capital	$	191,568,531		$	36,916,703	$	71,940,026		$	114,394,742
Accumulated net investment income		2,397,617			37		54,429			928
Accumulated net realized gains (losses) on investments, written options, securities sold short and capital gain distributions received		(75,782,546	)		523,292		(12,524,477	)		(1,740,195	)
Net unrealized appreciation on investments, written options and securities sold short		2,920,268			979,735		1,339,795			3,802,458
Net Assets	$	121,103,870		$	38,419,767	$	60,809,773		$	116,457,933
^(A)Premiums received for written options:	$	1,693,474		$	—	$	—		$	—
^(B)Proceeds received for securities sold short:	$	22,611,637		$	—	$	—		$	—

See accompanying Notes to Financial Statements.

Statements of Assets and Liabilities (Unaudited) (Continued)

				Touchstone			Touchstone			Touchstone
	Touchstone			Controlled			Dynamic			Dynamic
	Dynamic			Growth			Diversified			Global
	Equity			with Income			Income			Allocation
	Fund			Fund			Fund			Fund

Pricing of Class A Shares
Net assets applicable to Class A shares	$	15,486,985		$	13,768,519		$	31,755,790		$	66,589,043
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		1,017,947			1,208,997			2,437,286			5,414,325
Net asset value per share*	$	15.21		$	11.39		$	13.03		$	12.30
Maximum sale 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) - Class A shares	$	16.14		$	12.08		$	13.82		$	13.05

Pricing of Class C Shares
Net assets applicable to Class C shares	$	8,205,772		$	7,936,309		$	19,575,323		$	35,541,555
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		585,857			700,030			1,499,160			2,951,702
Net asset value and offering price per share**	$	14.01		$	11.34		$	13.06		$	12.04

Pricing of Class Y Shares
Net assets applicable to Class Y shares	$	84,379,472		$	16,714,939		$	9,478,660		$	14,327,335
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		5,438,975			1,468,341			726,025			1,154,763
Net asset value, offering price and redemption price per share	$	15.51		$	11.38		$	13.06		$	12.41

Pricing of Institutional Class Shares
Net assets applicable to Institutional Class Shares	$	13,031,641		$	—		$	—		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		837,000			—			—			—
Net asset value, offering price and redemption price per share	$	15.57		$	—		$	—		$	—

* 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 due to the terms of the contingent deferred sales charge.

See accompanying Notes to Financial Statements.

Statements of Operations

For the Six Months Ended June 30, 2017 (Unaudited)

				Touchstone			Touchstone			Touchstone
	Touchstone			Controlled			Dynamic			Dynamic
	Dynamic			Growth			Diversified			Global
	Equity			with Income			Income			Allocation
	Fund			Fund			Fund			Fund
Investment Income
Dividends from affiliated funds	$	—		$	348,740		$	933,984		$	1,085,257
Dividends from non-affiliated securities		1,464,156			1,271			263,549			153,258
Total Investment Income		1,464,156			350,011			1,197,533			1,238,515
Expenses
Investment advisory fees		542,119			37,613			62,044			148,558
Administration fees		92,479			27,270			44,982			86,164
Compliance fees and expenses		1,391			1,391			1,391			1,391
Custody fees		12,654			1,855			1,871			2,132
Professional fees		14,098			10,620			11,387			13,122
Transfer Agent fees, Class A		9,575			9,568			16,422			44,281
Transfer Agent fees, Class C		7,575			3,863			10,738			26,156
Transfer Agent fees, Class Y		46,926			9,583			7,153			10,035
Transfer Agent fees, Institutional Class		60			—			—			—
Registration Fees, Class A		8,852			9,071			10,491			9,001
Registration Fees, Class C		8,595			9,046			9,005			9,001
Registration Fees, Class Y		12,172			9,511			8,998			8,995
Registration Fees, Institutional Class		9,218			—			—			—
Dividend expense on securities sold short		83,046			—			—			—
Interest expense on securities sold short		111,042			—			—			—
Reports to Shareholders, Class A		2,575			2,442			3,057			4,434
Reports to Shareholders, Class C		2,357			2,001			2,608			3,260
Reports to Shareholders, Class Y		5,277			2,010			1,699			1,708
Reports to Shareholders, Institutional Class		1,672			—			—			—
Distribution expenses, Class A		18,349			17,432			36,022			78,399
Distribution and shareholder servicing expenses, Class C		54,606			45,603			117,730			209,683
Trustee fees		7,745			7,745			7,745			7,745
Other expenses		11,084			7,189			10,356			22,580
Total Expenses		1,063,467			213,813			363,699			686,645
Fees waived and/or reimbursed by the Advisor and/or Affiliates^(A)		(10,012	)		(105,596	)		(135,429	)		(255,849	)
Net Expenses		1,053,455			108,217			228,270			430,796
Net Investment Income		410,701			241,794			969,263			807,719
Realized and Unrealized Gains (Losses) on Investments
Net realized gains on investments from non-affiliated securities		8,887,670			386			79,050			107,855
Net realized gains (losses) on investments from affiliated securities		—			305,964			425,870			3,498,553
Net realized losses on written options		(4,082,860	)		—			—			—
Net realized losses on securities sold short		(2,262,311	)		—			—			—
Net change in unrealized appreciation (depreciation) on investments		(1,223,067	)		265,394			1,078,145			3,876,395
Net change in unrealized appreciation (depreciation) on written options		554,542			—			—			—
Net change in unrealized appreciation (depreciation) on securities sold short		(1,950,025	)		—			—			—
Net Realized and Unrealized Gains (Losses) on Investments	$	(76,051	)	$	571,744		$	1,583,065		$	7,482,803
Change in Net Assets Resulting from Operations	$	334,650		$	813,538		$	2,552,328		$	8,290,522
Net of foreign tax withholding of:	$	1,056		$	—		$	—		$	—

^(A)See Note 4 in Notes to Financial Statements.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets

							Touchstone
	Touchstone						Controlled Growth
	Dynamic Equity						with Income
	Fund						Fund
	For the			For the			For the			For the
	Six Months			Year			Six Months			Year
	Ended			Ended			Ended			Ended
	June 30, 2017			December 31,			June 30, 2017			December 31,
	(Unaudited)			2016			(Unaudited)			2016
From Operations
Net investment income	$	410,701		$	1,947,788		$	241,794		$	426,523
Net realized gains on investments, written options, securities sold short and capital gain distributions received		2,542,499			2,886,011			306,350			659,648
Net change in unrealized appreciation (depreciation) on investments, written options and securities sold short		(2,618,550	)		2,908,280			265,394			785,013
Change in Net Assets from Operations		334,650			7,742,079			813,538			1,871,184

Distributions to Shareholders from:
Net investment income, Class A		—			(59,922	)		(92,575	)		(321,665	)
Net investment income, Class C		—			—			(25,120	)		(134,013	)
Net investment income, Class Y		—			(588,508	)		(129,077	)		(270,892	)
Net investment income, Institutional Class		—			(110,416	)		—			—
Net realized gains, Class A		—			—			—			(5,079	)
Net realized gains, Class C		—			—			—			(3,371	)
Net realized gains, Class Y		—			—			—			(4,351	)
Total Distributions		—			(758,846	)		(246,772	)		(739,371	)

Net Increase (Decrease) from Share Transactions^(A)		(22,697,497	)		39,315,518			(1,242,240	)		2,338,838

Total Increase (Decrease) in Net Assets		(22,362,847	)		46,298,751			(675,474	)		3,470,651

Net Assets
Beginning of period		143,466,717			97,167,966			39,095,241			35,624,590
End of period	$	121,103,870		$	143,466,717		$	38,419,767		$	39,095,241
Accumulated Net Investment Income	$	2,397,617		$	1,986,916		$	37		$	5,015

^(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 16 to 17.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets (Continued)

Touchstone						Touchstone
Dynamic Diversified						Dynamic Global
Income						Allocation
Fund						Fund
For the			For the			For the			For the
Six Months			Year			Six Months			Year
Ended			Ended			Ended			Ended
June 30, 2017			December 31,			June 30, 2017			December 31,
(Unaudited)			2016			(Unaudited)			2016

$	969,263		$	2,563,064		$	807,719		$	2,639,864
	504,920			46,797			3,606,408			3,327,693
	1,078,145			3,531,488			3,876,395			(2,909,874	)
	2,552,328			6,141,349			8,290,522			3,057,683


	(548,509	)		(1,100,570	)		(510,651	)		(1,487,313	)
	(312,448	)		(784,960	)		(164,606	)		(732,400	)
	(190,010	)		(637,523	)		(131,534	)		(388,516	)
	—			—			—			—
	—			—			—			(2,642,482	)
	—			—			—			(1,947,391	)
	—			—			—			(617,110	)
	(1,050,967	)		(2,523,053	)		(806,791	)		(7,815,212	)

	(4,595,429	)		(15,049,340	)		(13,338,396	)		(15,258,866	)

	(3,094,068	)		(11,431,044	)		(5,854,665	)		(20,016,395	)


	63,903,841			75,334,885			122,312,598			142,328,993
$	60,809,773		$	63,903,841		$	116,457,933		$	122,312,598
$	54,429		$	136,133		$	928		$	—

Statements of Changes in Net Assets - Capital Stock Activity

	Touchstone Dynamic Equity Fund												Touchstone Controlled Growth with Income Fund
	For the Six Months												For the Six Months
	Ended						For the Year						Ended						For the Year
	June 30, 2017						Ended						June 30, 2017						Ended
	(Unaudited)						December 31, 2016						(Unaudited)						December 31, 2016
	Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares sold		320,407		$	4,864,546			1,001,521		$	14,331,349			183,458		$	2,080,482			474,776		$	5,216,104
Reinvestment of distributions		—			—			3,319			50,280			7,270			82,257			26,381			294,829
Cost of Shares redeemed		(325,322	)		(4,924,074	)		(810,506	)		(11,812,741	)		(348,252	)		(3,922,763	)		(569,481	)		(6,241,121	)
Change from Class A Share Transactions		(4,915	)		(59,528	)		194,334			2,568,888			(157,524	)		(1,760,024	)		(68,324	)		(730,188	)
Class C
Proceeds from Shares sold		37,629			525,131			287,559			3,822,949			20,440			229,323			63,172			699,268
Reinvestment of distributions		—			—			—			—			1,950			21,949			10,068			112,364
Cost of Shares redeemed		(325,521	)		(4,556,712	)		(223,971	)		(3,020,593	)		(217,004	)		(2,443,349	)		(225,180	)		(2,467,758	)
Change from Class C Share Transactions		(287,892	)		(4,031,581	)		63,588			802,356			(194,614	)		(2,192,077	)		(151,940	)		(1,656,126	)
Class Y
Proceeds from Shares sold		772,234			11,897,863			3,964,309			58,202,327			608,847			6,884,829			673,437			7,536,927
Reinvestment of distributions		—			—			34,016			524,530			9,649			109,176			21,068			235,671
Cost of Shares redeemed		(1,598,368	)		(24,643,102	)		(2,135,437	)		(31,643,034	)		(379,327	)		(4,284,144	)		(278,153	)		(3,047,446	)
Change from Class Y Share Transactions		(826,134	)		(12,745,239	)		1,862,888			27,083,823			239,169			2,709,861			416,352			4,725,152
Institutional Class														—
Proceeds from Shares sold		64,099			996,467			871,349			12,988,892			—			—			—			—
Reinvestment of distributions		—			—			7,133			110,416			—			—			—			—
Cost of Shares redeemed		(444,426	)		(6,857,616	)		(284,849	)		(4,238,857	)		—			—			—			—
Change from Institutional Class Share Transactions		(380,327	)		(5,861,149	)		593,633			8,860,451			—			—			—			—

Change from Share Transactions		(1,499,268	)	$	(22,697,497	)		2,714,443		$	39,315,518			(112,969	)	$	(1,242,240	)		196,088		$	2,338,838

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets - Capital Stock Activity (Continued)

Touchstone Dynamic Diversified Income Fund												Touchstone Dynamic Global Allocation Fund
For the Six Months												For the Six Months
Ended						For the Year						Ended						For the Year
June 30, 2017						Ended						June 30, 2017						Ended
(Unaudited)						December 31, 2016						(Unaudited)						December 31, 2016
Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars

	334,190		$	4,375,792			202,524		$	2,589,244			579,132		$	7,109,867			135,554		$	1,615,577
	36,419			471,846			79,161			1,000,906			37,531			454,298			323,494			3,810,269
	(158,127	)		(2,055,612	)		(506,011	)		(6,403,795	)		(626,557	)		(7,548,301	)		(963,955	)		(11,540,780	)
	212,482			2,792,026			(224,326	)		(2,813,645	)		(9,894	)		15,864			(504,907	)		(6,114,934	)

	19,306			250,029			51,109			643,583			28,776			338,901			118,517			1,379,550
	19,055			247,277			44,445			562,906			11,066			130,695			174,370			2,004,795
	(515,655	)		(6,738,657	)		(372,001	)		(4,669,530	)		(1,061,079	)		(12,595,342	)		(857,963	)		(10,067,557	)
	(477,294	)		(6,241,351	)		(276,447	)		(3,463,041	)		(1,021,237	)		(12,125,746	)		(565,076	)		(6,683,212	)

	156,277			2,036,968			184,646			2,312,741			141,109			1,731,834			164,372			1,971,060
	13,836			179,638			48,014			607,722			9,268			113,144			75,626			898,983
	(258,967	)		(3,362,710	)		(910,971	)		(11,693,117	)		(254,686	)		(3,073,492	)		(443,819	)		(5,330,763	)
	(88,854	)		(1,146,104	)		(678,311	)		(8,772,654	)		(104,309	)		(1,228,514	)		(203,821	)		(2,460,720	)

	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—

	(353,666	)	$	(4,595,429	)		(1,179,084	)	$	(15,049,340	)		(1,135,440	)	$	(13,338,396	)		(1,273,804	)	$	(15,258,866	)

Statement of Cash Flows

For the Six Months June 30, 2017 (Unaudited)

	Touchstone
	Dynamic
	Equity
	Fund
Cash Flows Used in Operating Activities

Change in net assets resulting from operations	$	334,650

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Purchases of investments		(184,338,691	)
Proceeds from disposition of investments		215,415,224
Net sales of purchased options		(43,612	)
Premiums on call and put options written		10,124,336
Covers of written options		(14,044,627	)
Proceeds from securities sold short		46,692,364
Covers of securities sold short		(54,297,058	)
Net sales of short term securities		1,441,463
Increase in receivable for investments sold		(824,749	)
Proceeds from litigation settlements		84,771
Return of capital received from investments		69,563
Decrease in deposits with Prime Broker		2,260,410
Decrease in dividends and interest receivable		206,013
Increase in other assets		(27,112	)
Increase in dividend and interest payable on securities sold short		2,357
Decrease in payable to Trustees		(72	)
Decrease in payable to cover options		(175,335	)
Decrease in payable to Investment Advisor		(26,051	)
Decrease in payable to other affiliates		(9,195	)
Decrease in other accrued expenses and liabilities		(7	)
Net realized (gains) on investments		(8,887,670	)
Net realized losses on written options		4,082,860
Net realized losses on securities sold short		2,262,311
Net change in unrealized (appreciation) depreciation on investments		1,223,067
Net change in unrealized (appreciation) depreciation on written options		(554,542	)
Net change in unrealized (appreciation) depreciation on securities sold short		1,950,025
Net cash provided in operating activities		22,920,693

Cash Flows provided by Financing Activities
Proceeds from shares sold		18,401,823
Cash distributions paid		—
Proceeds from shares redeemed		(41,323,113	)
Net cash used by financing activities		(22,921,290	)

Net change in cash		(597	)
Cash - beginning of the period		597
Cash - end of period	$	—

Supplemental disclosure of cash flow information:
Dividend and interest paid	$	191,731

See accompanying Notes to Financial Statements.

Financial Highlights

Touchstone Dynamic Equity Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 31, 2017			Year Ended December 31,												Five Months Ended December 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	15.18		$	14.52		$	13.59		$	13.15		$	11.05		$	11.20		$	10.26
Income (loss) from investment operations:
Net investment income (loss)		0.03	^(B)		0.19	^(B)		0.13			—	^(B)(C)		0.04			0.04	^(B)		(0.07	)^(B)
Net realized and unrealized gains (losses) on investments		—			0.53			0.80			0.48			2.06			(0.19	)		1.09
Total from investment operations		0.03			0.72			0.93			0.48			2.10			(0.15	)		1.02
Distributions from:
Net investment income		—			(0.06	)		—			(0.04	)		—			—			(0.08	)
Net asset value at end of period	$	15.21		$	15.18		$	14.52		$	13.59		$	13.15		$	11.05		$	11.20
Total return^(D)		0.13	%^(E)		4.95	%		6.84	%		3.64	%		19.01	%		(1.34)	%^(E)		10.00	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	15,487		$	15,525		$	12,029		$	11,546		$	15,300		$	16,156		$	17,919
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)^(F)		1.85	%^(G)		1.90	%		2.01	%		2.07	%		2.21	%		2.46	%^(G)		2.80	%
Gross expenses (including dividend and interest expense on securities sold short)^(H)		1.91	%^(G)		1.91	%		2.16	%		2.18	%		2.41	%		2.65	%^(G)		3.08	%
Net investment income (loss)		0.44	%^(G)		1.30	%		0.87	%		0.01	%		0.30	%		0.88	%^(G)		(0.63	)%
Portfolio turnover rate		121	%^(E)		245	%		235	%		236	%		382	%		105	%^(E)		234	%

^(A)

The Fund changed its fiscal year end from July 31 to December 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)

The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.55%, 1.55%, 1.55%, 1.55%, 1.55%, 1.55% and 1.55% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

^(G)

Annualized.

^(H)

The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.61%, 1.56%, 1.70%, 1.66%, 1.75%, 1.74% and 1.82% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Equity Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 30, 2017			Year Ended December 31,												Five Months Ended December 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	14.03		$	13.47		$	12.70		$	12.35		$	10.46		$	10.63		$	9.79
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)^(B)		0.07	^(B)		0.02			(0.09	)^(B)		(0.08	)		0.01	^(B)		(0.14	)^(B)
Net realized and unrealized gains (losses) on investments		—			0.49			0.75			0.44			1.97			(0.18	)		1.03
Total from investment operations		(0.02	)		0.56			0.77			0.35			1.89			(0.17	)		0.89
Distributions from:
Net investment income		—			—			—			—			—			—			(0.05	)
Net asset value at end of period	$	14.01		$	14.03		$	13.47		$	12.70		$	12.35		$	10.46		$	10.63
Total return^(C)		(0.21	)%^(D)		4.16	%		6.06	%		2.83	%		18.07	%		(1.60	)%^(D)		9.09	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	8,206		$	12,256		$	10,911		$	10,486		$	10,261		$	10,420		$	11,684
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)^(E)		2.60	%^(F)		2.65	%		2.76	%		2.82	%		2.96	%		3.21	%^(F)		3.55	%
Gross expenses (including dividend and interest expense on securities sold short)^(G)		2.71	%^(F)		2.71	%		2.90	%		2.96	%		3.20	%		3.48	%^(F)		3.75	%
Net investment income (loss)		(0.31	)%^(F)		0.55	%		0.12	%		(0.74	)%		(0.45	)%		0.13	%^(F)		(1.38	)%
Portfolio turnover rate		121	%^(D)		245	%		235	%		236	%		382	%		105	%^(D)		234	%

^(A)

The Fund changed its fiscal year end from July 31 to December 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)

The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 2.30%, 2.30%, 2.30%, 2.30%, 2.30%, 2.30% and 2.30% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

^(F)

Annualized.

^(G)

The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 2.41%, 2.36%, 2.44%, 2.44%, 2.54%, 2.57% and 2.50% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Equity Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 30, 2017			Year Ended December 31,												Five Months Ended December 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	15.45		$	14.76		$	13.80		$	13.37		$	11.22		$	11.35		$	10.40
Income (loss) from investment operations:
Net investment income (loss)		0.06	^(B)		0.24	^(B)		0.17			0.04	^(B)		0.07			0.05	^(B)		(0.04	)^(B)
Net realized and unrealized gains (losses) on investments		—			0.54			0.81			0.49			2.08			(0.18	)		1.09
Total from investment operations		0.06			0.78			0.98			0.53			2.15			(0.13	)		1.05
Distributions from:
Net investment income		—			(0.09	)		(0.02	)		(0.10	)		(—	)^(C)		—			(0.10	)
Net asset value at end of period	$	15.51		$	15.45		$	14.76		$	13.80		$	13.37		$	11.22		$	11.35
Total return		0.32	%^(D)		5.31	%		7.12	%		3.95	%		19.20	%		(1.15	)%^(D)		10.14	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	84,379		$	96,807		$	64,986		$	43,349		$	24,066		$	20,397		$	24,054
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)^(E)(F)		1.52	%^(G)		1.57	%		1.71	%		1.78	%		1.96	%		2.21	%^(G)		2.56	%
Gross expenses (including dividend and interest expense on securities sold short)^(H)		1.52	%^(G)		1.57	%		1.71	%		1.76	%		1.95	%		2.31	%^(G)		2.60	%
Net investment income (loss)		0.78	%^(G)		1.64	%		1.17	%		0.30	%		0.55	%		1.13	%^(G)		(0.38	)%
Portfolio turnover rate		121	%^(D)		245	%		235	%		236	%		382	%		105	%^(D)		234	%

^(A)

The Fund changed its fiscal year end from July 31 to December 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)

Not annualized.

^(E)

Net expenses include amounts recouped by the Advisor.

^(F)

The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.22%, 1.22%, 1.25%, 1.26%, 1.30%, 1.30% and 1.30% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

^(G)

Annualized.

^(H)

The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.22%, 1.22%, 1.25%, 1.24%, 1.29%, 1.40% and 1.35% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Equity Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 30, 2017			Year Ended December 31,												Five Months Ended December 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	15.51		$	14.82		$	13.83		$	13.39		$	11.23		$	11.36		$	10.40
Income (loss) from investment operations:
Net investment income (loss)		0.06	^(B)		0.24	^(B)		0.16			0.04	^(B)		0.12			0.06	^(B)		(0.04	)^(B)
Net realized and unrealized gains (losses) on investments		—			0.54			0.83			0.49			2.05			(0.19	)		1.10
Total from investment operations		0.06			0.78			0.99			0.53			2.17			(0.13	)		1.06
Distributions from:
Net investment income		—			(0.09	)		(—	)^(C)		(0.09	)		(0.01	)		—			(0.10	)
Net asset value at end of period	$	15.57		$	15.51		$	14.82		$	13.83		$	13.39		$	11.23		$	11.36
Total return		0.32	%^(D)		5.27	%		7.19	%		3.98	%		19.29	%		(1.15	)%^(D)		10.27	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	13,032		$	18,879		$	9,242		$	12,297		$	15,523		$	20,085		$	6,168
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)^(E)(F)		1.53	%^(G)		1.59	%		1.71	%		1.77	%		1.91	%		2.16	%^(G)		2.50	%
Gross expenses (including dividend and interest expense on securities sold short)^(H)		1.53	%^(G)		1.54	%		1.72	%		1.76	%		1.95	%		2.18	%^(G)		2.95	%
Net investment income (loss)		0.76	%^(G)		1.61	%		1.17	%		0.31	%		0.60	%		1.18	%^(G)		(0.33	)%
Portfolio turnover rate		121	%^(D)		245	%		235	%		236	%		382	%		105	%^(D)		234	%

^(A)

The Fund changed its fiscal year end from July 31 to December 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)

Not annualized.

^(E)

Net expenses include amounts recouped by the Advisor.

^(F)

The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.23%, 1.24%, 1.25%, 1.25%, 1.25%, 1.25% and 1.25% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

^(G)

Annualized.

^(H)

The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.23%, 1.19%, 1.26%, 1.24%, 1.29%, 1.27% and 1.70% for the six months ended June 30, 2017, years ended December 31, 2016, 2015, 2014 and 2013, period ended December 31, 2012 and year ended July 31, 2012, respectively.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Controlled Growth with Income Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 30, 2017			Year Ended December 31,												Five Months Ended December��31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	11.22		$	10.83		$	11.08		$	10.93		$	10.50		$	10.98		$	10.87
Income (loss) from investment operations:
Net investment income		0.08			0.15			0.14			0.21			0.19	^(B)		0.10	^(B)		0.21	^(B)
Net realized and unrealized gains (losses) on investments		0.17			0.47			(0.22	)		0.17			0.45			0.17			0.13
Total from investment operations		0.25			0.62			(0.08	)		0.38			0.64			0.27			0.34
Distributions from:
Net investment income		(0.08	)		(0.23	)		(0.17	)		(0.23	)		(0.21	)		(0.28	)		(0.23	)
Realized capital gains		—			—	^(C)		—			—			—			(0.47	)		—
Total distributions		(0.08	)		(0.23	)		(0.17	)		(0.23	)		(0.21	)		(0.75	)		(0.23	)
Net asset value at end of period	$	11.39		$	11.22		$	10.83		$	11.08		$	10.93		$	10.50		$	10.98
Total return^(D)		2.22	%^(E)		5.82	%		(0.68	)%		3.51	%		6.14	%		2.47	%^(E)		3.23	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	13,769		$	15,327		$	15,542		$	17,408		$	24,857		$	32,965		$	8,466
Ratio to average net assets:
Net expenses^(F)		0.49	%^(G)		0.49	%		0.49	%		0.46	%		0.35	%		0.40	%^(G)		0.61	%
Gross expenses^(F)		1.05	%^(G)		1.04	%		0.96	%		0.89	%		0.89	%		0.85	%^(G)		1.02	%
Net investment income^(F)		1.37	%^(G)		1.38	%		1.25	%		1.79	%		1.74	%		2.28	%^(G)		1.95	%
Portfolio turnover rate		18	%^(E)		41	%		92	%		11	%		30	%		79	%^(E)(H)		89	%

Touchstone Controlled Growth with Income Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 30, 2017			Year Ended December 31,												Five Months Ended December 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	11.16		$	10.78		$	11.03		$	10.88		$	10.45		$	10.92		$	10.81
Income (loss) from investment operations:
Net investment income		0.04			0.07			0.06			0.12			0.11	^(B)		0.07	^(B)		0.13	^(B)
Net realized and unrealized gains (losses) on investments		0.17			0.46			(0.22	)		0.18			0.45			0.17			0.13
Total from investment operations		0.21			0.53			(0.16	)		0.30			0.56			0.24			0.26
Distributions from:
Net investment income		(0.03	)		(0.15	)		(0.09	)		(0.15	)		(0.13	)		(0.24	)		(0.15	)
Realized capital gains		—			—	^(C)		—			—			—			(0.47	)		—
Total distributions		(0.03	)		(0.15	)		(0.09	)		(0.15	)		(0.13	)		(0.71	)		(0.15	)
Net asset value at end of period	$	11.34		$	11.16		$	10.78		$	11.03		$	10.88		$	10.45		$	10.92
Total return^(D)		1.91	%^(E)		4.95	%		(1.45	)%		2.76	%		5.36	%		2.18	%^(E)		2.50	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	7,936		$	9,986		$	11,281		$	14,357		$	15,275		$	17,972		$	17,104
Ratio to average net assets:
Net expenses^(F)		1.24	%^(G)		1.24	%		1.24	%		1.21	%		1.10	%		1.15	%^(G)		1.36	%
Gross expenses^(F)		1.83	%^(G)		1.81	%		1.68	%		1.65	%		1.64	%		1.67	%^(G)		1.70	%
Net investment income^(F)		0.62	%^(G)		0.63	%		0.50	%		1.04	%		0.99	%		1.53	%^(G)		1.20	%
Portfolio turnover rate		18	%^(E)		41	%		92	%		11	%		30	%		79	%^(E)(H)		89	%

^(A)

The Fund changed its fiscal year end from July 31 to December 31.

^(B)

The net investment income 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)

Ratio does not include expenses of the underlying funds.

^(G)

Annualized.

^(H)

Portfolio turnover excludes the purchases and sales of the Fifth Third LifeModel Conservative Fund and Fifth Third LifeModel Moderately Conservative Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Controlled Growth with Income Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended June 30, 2017			Year Ended December 31,												Five Months Ended December 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	11.21		$	10.83		$	11.08		$	10.93		$	10.51		$	10.99		$	10.87
Income (loss) from investment operations:
Net investment income		0.09			0.16			0.17			0.25			0.21	^(B)		0.12	^(B)		0.24	^(B)
Net realized and unrealized gains (losses) on investments		0.17			0.48			(0.22	)		0.16			0.45			0.16			0.14
Total from investment operations		0.26			0.64			(0.05	)		0.41			0.66			0.28			0.38
Distributions from:
Net investment income		(0.09	)		(0.26	)		(0.20	)		(0.26	)		(0.24	)		(0.29	)		(0.26	)
Realized capital gains		—			—	^(C)		—			—			—			(0.47	)		—
Total distributions		(0.09	)		(0.26	)		(0.20	)		(0.26	)		(0.24	)		(0.76	)		(0.26	)
Net asset value at end of period	$	11.38		$	11.21		$	10.83		$	11.08		$	10.93		$	10.51		$	10.99
Total return		2.35	%^(D)		5.99	%		(0.43	)%		3.78	%		6.31	%		2.60	%^(D)		3.60	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	16,715		$	13,782		$	8,802		$	11,931		$	23,230		$	33,329		$	2,156
Ratio to average net assets:
Net expenses^(E)		0.24	%^(F)		0.24	%		0.24	%		0.21	%		0.10	%		0.15	%^(F)		0.36	%
Gross expenses^(E)		0.79	%^(F)		0.90	%		0.79	%		0.65	%		0.62	%		0.57	%^(F)		1.38	%
Net investment income^(E)		1.62	%^(F)		1.63	%		1.50	%		2.04	%		1.99	%		2.53	%^(F)		2.20	%
Portfolio turnover rate		18	%^(D)		41	%		92	%		11	%		30	%		79	%^(D)(G)		89	%

^(A)

The Fund changed its fiscal year end from July 31 to December 31.

^(B)

The net investment income per share is based on average shares outstanding for the period.

^(C)

Less than $0.005 per share.

^(D)

Not annualized.

^(E)

Ratio does not include expenses of the underlying funds.

^(F)

Annualized.

^(G)

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Diversified Income Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months															Five
	Ended															Months
	June 30,															Ended			Year Ended
	2017			Year Ended December 31,												December 31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	12.73		$	12.15		$	12.66		$	12.37		$	11.13		$	11.18		$	11.03
Income (loss) from investment operations:
Net investment income		0.22			0.48			0.18			0.22			0.17			0.13	^(B)		0.17	^(B)
Net realized and unrealized gains (losses) on investments		0.32			0.58			(0.50	)		0.33			1.30			0.35			0.14
Total from investment operations		0.54			1.06			(0.32	)		0.55			1.47			0.48			0.31
Distributions from:
Net investment income		(0.24	)		(0.48	)		(0.19	)		(0.26	)		(0.23	)		(0.24	)		(0.16	)
Realized capital gains		—			—			—			—			—			(0.29	)		—
Total distributions		(0.24	)		(0.48	)		(0.19	)		(0.26	)		(0.23	)		(0.53	)		(0.16	)
Net asset value at end of period	$	13.03		$	12.73		$	12.15		$	12.66		$	12.37		$	11.13		$	11.18
Total return^(C)		4.25	%^(D)		8.81	%		(2.54	)%		4.46	%		13.28	%		4.37	%^(D)		2.89	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	31,756		$	28,316		$	29,754		$	35,689		$	46,285		$	49,118		$	9,839
Ratio to average net assets:
Net expenses^(E)		0.49	%^(F)		0.49	%		0.49	%		0.46	%		0.35	%		0.41	%^(F)		0.64	%
Gross expenses^(E)		0.91	%^(F)		0.90	%		0.86	%		0.83	%		0.86	%		0.83	%^(F)		0.97	%
Net investment income^(E)		3.37	%^(F)		3.73	%		1.38	%		1.61	%		1.42	%		2.75	%^(F)		1.58	%
Portfolio turnover rate		10	%^(D)		32	%		77	%		11	%		32	%		74	%^(D)(G)		76	%

Touchstone Dynamic Diversified Income Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months															Five
	Ended															Months
	June 30,															Ended			Year Ended
	2017			Year Ended December 31,												December 31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	12.75		$	12.17		$	12.67		$	12.36		$	11.12		$	11.14		$	11.01
Income (loss) from investment operations:
Net investment income		0.16			0.38			0.09			0.11			0.08			0.09	^(B)		0.09	^(B)
Net realized and unrealized gains (losses) on investments		0.33			0.58			(0.50	)		0.33			1.30			0.35			0.14
Total from investment operations		0.49			0.96			(0.41	)		0.44			1.38			0.44			0.23
Distributions from:
Net investment income		(0.18	)		(0.38	)		(0.09	)		(0.13	)		(0.14	)		(0.17	)		(0.10	)
Realized capital gains		—			—			—			—			—			(0.29	)		—
Total distributions		(0.18	)		(0.38	)		(0.09	)		(0.13	)		(0.14	)		(0.46	)		(0.10	)
Net asset value at end of period	$	13.06		$	12.75		$	12.17		$	12.67		$	12.36		$	11.12		$	11.14
Total return^(C)		3.89	%^(D)		7.98	%		(3.22	)%		3.59	%		12.45	%		4.03	%^(D)		2.13	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	19,575		$	25,197		$	27,414		$	32,961		$	36,681		$	38,226		$	38,388
Ratio to average net assets:
Net expenses^(E)		1.24	%^(F)		1.24	%		1.24	%		1.21	%		1.10	%		1.16	%^(F)		1.39	%
Gross expenses^(E)		1.64	%^(F)		1.63	%		1.57	%		1.57	%		1.58	%		1.60	%^(F)		1.59	%
Net investment income^(E)		2.62	%^(F)		2.98	%		0.63	%		0.86	%		0.67	%		2.00	%^(F)		0.84	%
Portfolio turnover rate		10	%^(D)		32	%		77	%		11	%		32	%		74	%^(D)(G)		76	%

^(A)

The Fund changed its fiscal year end from July 31 to December 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)

Ratio does not include expenses of the underlying funds.

^(F)

Annualized.

^(G)

Portfolio turnover excludes the purchases and sales of the Fifth Third LifeModel Moderate Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Diversified Income Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

																Five
	Six Months															Months
	Ended															Ended
	June 30,															December			Year Ended
	2017			Year Ended December 31,												31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	12.75		$	12.17		$	12.68		$	12.39		$	11.15		$	11.21		$	11.05
Income (loss) from investment operations:
Net investment income		0.18			0.55			0.22			0.27			0.22			0.14	^(B)		0.20	^(B)
Net realized and unrealized gains (losses) on investments		0.38			0.54			(0.51	)		0.31			1.28			0.35			0.14
Total from investment operations		0.56			1.09			(0.29	)		0.58			1.50			0.49			0.34
Distributions from:
Net investment income		(0.25	)		(0.51	)		(0.22	)		(0.29	)		(0.26	)		(0.26	)		(0.18	)
Realized capital gains		—			—			—			—			—			(0.29	)		—
Total distributions		(0.25	)		(0.51	)		(0.22	)		(0.29	)		(0.26	)		(0.55	)		(0.18	)
Net asset value at end of period	$	13.06		$	12.75		$	12.17		$	12.68		$	12.39		$	11.15		$	11.21
Total return		4.45	%^(C)		9.06	%		(2.29	)%		4.72	%		13.54	%		4.45	%^(C)		3.18	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	9,479		$	10,391		$	18,168		$	23,466		$	34,079		$	47,092		$	1,287
Ratio to average net assets:
Net expenses^(D)		0.24	%^(E)		0.24	%		0.24	%		0.21	%		0.10	%		0.16	%^(E)		0.39	%
Gross expenses^(D)		0.82	%^(E)		0.73	%		0.65	%		0.58	%		0.59	%		0.52	%^(E)		1.40	%
Net investment income^(D)		3.62	%^(E)		3.98	%		1.63	%		1.86	%		1.67	%		3.00	%^(E)		1.84	%
Portfolio turnover rate		10	%^(C)		32	%		77	%		11	%		32	%		74	%^(C)(F)		76	%

^(A)

The Fund changed its fiscal year end from July 31 to December 31.

^(B)

The net investment income per share is based on average shares outstanding for the period.

^(C)

Not annualized.

^(D)

Ratio does not include expenses of the underlying funds.

^(E)

Annualized.

^(F)

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Global Allocation Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months															Five
	Ended															Months
	June 30,															Ended			Year Ended
	2017			Year Ended December 31,												December 31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	11.56		$	12.01		$	12.89		$	12.99		$	11.30		$	11.13		$	11.11
Income (loss) from investment operations:
Net investment income		0.10			0.28			0.18			0.20			0.17			0.14	^(B)		0.15	^(B)
Net realized and unrealized gains (losses) on investments		0.74			0.06			(0.57	)		0.46			1.77			0.51			0.02	^(C)
Total from investment operations		0.84			0.34			(0.39	)		0.66			1.94			0.65			0.17
Distributions from:
Net investment income		(0.10	)		(0.28	)		(0.19	)		(0.25	)		(0.25	)		(0.30	)		(0.15	)
Realized capital gains		—			(0.51	)		(0.30	)		(0.51	)		—			(0.18	)		—
Total distributions		(0.10	)		(0.79	)		(0.49	)		(0.76	)		(0.25	)		(0.48	)		(0.15	)
Net asset value at end of period	$	12.30		$	11.56		$	12.01		$	12.89		$	12.99		$	11.30		$	11.13
Total return^(D)		7.25	%^(E)		2.80	%		(3.09	)%		5.06	%		17.23	%		5.96	%^(E)		1.65	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	66,589		$	62,689		$	71,201		$	56,893		$	68,184		$	71,235		$	15,181
Ratio to average net assets:
Net expenses^(F)		0.49	%^(G)		0.49	%		0.49	%		0.46	%		0.35	%		0.39	%^(G)		0.57	%
Gross expenses^(F)		0.91	%^(G)		0.92	%		0.90	%		0.89	%		0.93	%		0.90	%^(G)		1.03	%
Net investment income^(F)		1.59	%^(G)		2.26	%		1.75	%		1.44	%		1.27	%		2.90	%^(G)		1.38	%
Portfolio turnover rate		15	%^(E)		39	%		68	%^(H)		11	%		38	%		73	%^(E)(I)		77	%

Touchstone Dynamic Global Allocation Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months															Five
	Ended															Months
	June 30,															Ended			Year Ended
	2017			Year Ended December 31,												December 31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	11.31		$	11.77		$	12.67		$	12.79		$	11.13		$	10.89		$	10.86
Income (loss) from investment operations:
Net investment income		0.05			0.19			0.10			0.09			0.06			0.10	^(B)		0.07	^(B)
Net realized and unrealized gains (losses) on investments		0.73			0.05			(0.58	)		0.45			1.77			0.50			0.02	^(C)
Total from investment operations		0.78			0.24			(0.48	)		0.54			1.83			0.60			0.09
Distributions from:
Net investment income		(0.05	)		(0.19	)		(0.12	)		(0.15	)		(0.17	)		(0.18	)		(0.06	)
Realized capital gains		—			(0.51	)		(0.30	)		(0.51	)		—			(0.18	)		—
Total distributions		(0.05	)		(0.70	)		(0.42	)		(0.66	)		(0.17	)		(0.36	)		(0.06	)
Net asset value at end of period	$	12.04		$	11.31		$	11.77		$	12.67		$	12.79		$	11.13		$	10.89
Total return^(D)		6.89	%^(E)		2.00	%		(3.81	)%		4.20	%		16.49	%		5.52	%^(E)		0.89	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	35,542		$	44,946		$	53,417		$	43,844		$	49,601		$	48,985		$	47,508
Ratio to average net assets:
Net expenses^(F)		1.24	%^(G)		1.24	%		1.24	%		1.21	%		1.11	%		1.14	%^(G)		1.32	%
Gross expenses^(F)		1.66	%^(G)		1.65	%		1.62	%		1.62	%		1.65	%		1.68	%^(G)		1.74	%
Net investment income (loss)^(F)		0.84	%^(G)		1.51	%		1.00	%		0.69	%		0.52	%		2.15	%^(G)		0.63	%
Portfolio turnover rate		15	%^(E)		39	%		68	%^(H)		11	%		38	%		73	%^(E)(I)		77	%

^(A)

The Fund changed its fiscal year end from July 31 to December 31.

^(B)

The net investment income per share is based on average shares outstanding for the period.

^(C)

The amounts shown for a share outstanding throughout the period does not accord with the change in net realized and unrealized gains (losses) on investments for the period due to the timing of purchases and sales of fund shares in relation to fluctuating market values during 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)

Ratio does not include expenses of the underlying funds.

^(G)

Annualized.

^(H)

Portfolio turnover excludes the purchases and sales of the Touchstone Growth Allocation Fund acquired on November 23, 2015. If these transactions were included, portfolio turnover would have been higher.

^(I)

Portfolio turnover excludes the purchases and sales of the Fifth Third LifeModel Moderately Aggressive Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Dynamic Global Allocation Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

																Five
	Six Months															Months
	Ended															Ended
	June 30,															December			Year Ended
	2017			Year Ended December 31,												31,			July 31,
	(Unaudited)			2016			2015			2014			2013			2012^(A)			2012
Net asset value at beginning of period	$	11.66		$	12.11		$	12.98		$	13.09		$	11.38		$	11.24		$	11.23
Income (loss) from investment operations:
Net investment income		0.11			0.32			0.23			0.28			0.21			0.15	^(B)		0.18	^(B)
Net realized and unrealized gains (losses) on investments		0.75			0.05			(0.58	)		0.40			1.78			0.52			0.01	^(C)
Total from investment operations		0.86			0.37			(0.35	)		0.68			1.99			0.67			0.19
Distributions from:
Net investment income		(0.11	)		(0.31	)		(0.22	)		(0.28	)		(0.28	)		(0.35	)		(0.18	)
Realized capital gains		—			(0.51	)		(0.30	)		(0.51	)		—			(0.18	)		—
Total distributions		(0.11	)		(0.82	)		(0.52	)		(0.79	)		(0.28	)		(0.53	)		(0.18	)
Net asset value at end of period	$	12.41		$	11.66		$	12.11		$	12.98		$	13.09		$	11.38		$	11.24
Total return		7.41	%^(D)		3.03	%		(2.75	)%		5.21	%		17.57	%		6.04	%^(D)		1.84	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	14,327		$	14,678		$	17,711		$	16,719		$	30,498		$	43,585		$	763
Ratio to average net assets:
Net expenses^(E)		0.24	%^(F)		0.24	%		0.24	%		0.21	%		0.10	%		0.14	%^(F)		0.32	%
Gross expenses^(E)		0.77	%^(F)		0.75	%		0.72	%		0.62	%		0.60	%		0.54	%^(F)		1.89	%
Net investment income^(E)		1.84	%^(F)		2.51	%		2.00	%		1.69	%		1.53	%		3.15	%^(F)		1.63	%
Portfolio turnover rate		15	%^(D)		39	%		68	%^(G)		11	%		38	%		73	%^(D)(H)		77	%

^(A)

The Fund changed its fiscal year end from July 31 to December 31.

^(B)

The net investment income per share is based on average shares outstanding for the period.

^(C)

^(D)

Not annualized.

^(E)

Ratio does not include expenses of the underlying funds.

^(F)

Annualized.

^(G)

^(H)

See accompanying Notes to Financial Statements.

Notes to Financial Statements

June 30, 2017 (Unaudited)

Organization

The Touchstone Strategic Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated November 18, 1982. The Trust consists of twenty one funds, including the following four funds (individually, a “Fund”, and collectively, the “Funds”):

Touchstone Dynamic Equity Fund (“Dynamic Equity Fund”)

Touchstone Controlled Growth with Income Fund (“Controlled Growth with Income Fund”)

Touchstone Dynamic Diversified Income Fund (“Dynamic Diversified Income Fund”)

Touchstone Dynamic Global Allocation Fund (“Dynamic Global Allocation Fund”)

Each Fund is diversified. Additionally, the Controlled Growth with Income Fund, Dynamic Diversified Income Fund and Dynamic Global Allocation Fund (collectively, the “Allocation Funds”) are “Funds of Funds”, sub-advised by Wilshire Associates Incorporated, which seek to achieve their investment goals by primarily investing in a diversified portfolio of affiliated and unaffiliated underlying equity, fixed income and alternative funds. These underlying funds (“Underlying Funds”), in turn, invest in a variety of U.S. and foreign equity and fixed income securities. Under normal circumstances, the Allocation Funds expect to invest their assets among equity, fixed-income and alternative funds in the following ranges:

	Equity Fund		Fixed-Income		Alternative
	Allocation		Fund Allocation		Fund Allocation
Controlled Growth with Income Fund		0-25%		25-50%		50-75%
Dynamic Diversified Income Fund		25-55%		25-55%		0-30%
Dynamic Global Allocation Fund		45-75%		25-55%		N/A

The investment goal of each of the Underlying Funds that the Allocation Funds invested in is as follows:

Fund		Investment Goal
Touchstone Arbitrage Fund		Seeks to achieve positive absolute returns over the long-term regardless of market conditions.
Touchstone Credit Opportunities Fund		Seeks absolute total return, primarily from income and capital appreciation.
Touchstone Dynamic Equity Fund		Seeks to obtain long-term capital appreciation from hedged equity investments with less risk than a fully invested, unhedged equity portfolio.
Touchstone Flexible Income Fund		Seeks a high level of income consistent with reasonable risk. The Fund seeks capital appreciation as a secondary goal.
Touchstone Focused Fund		Seeks capital appreciation.
Touchstone Growth Opportunities Fund		Seeks long-term growth of capital.
Touchstone High Yield Fund		Seeks to achieve a high level of income as its main goal. Capital appreciation is a secondary consideration.
Touchstone International Growth Fund		Seeks long-term capital growth.
Touchstone International Small Cap Fund		Seeks to provide investors with capital appreciation.
Touchstone International Value Fund		Seeks long-term capital growth.
Touchstone Large Cap Fund		Seeks to provide investors with long-term capital growth.
Touchstone Mid Cap Fund		Seeks long-term capital growth.

Notes to Financial Statements (Unaudited) (Continued)

Fund		Investment Goal
Touchstone Premium Yield Equity Fund		Seeks long-term growth of capital and high current income.
Touchstone Sands Capital Emerging Markets Growth Fund		Seeks long-term capital appreciation.
Touchstone Sands Capital Institutional Growth Fund		Seeks long-term capital appreciation.
Touchstone Small Cap Value Opportunities Fund		Seeks to provide investors with long-term capital growth.
Touchstone Total Return Bond Fund		Seeks current income. Capital appreciation is a secondary goal.
Touchstone Ultra Short Duration Fixed Income Fund		Seeks maximum total return consistent with the preservation of capital.
Touchstone Value Fund		Seeks to provide investors with long-term capital growth.
Dreyfus Government Cash Management		Seeks as high a level of current income as is consistent with the preservation of capital and the maintenance of liquidity.
iShares International Select Dividend ETF		Seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets.
JPMorgan Alerian MLP Index ETN		Seeks to replicate, net of expenses, the Alerian MLP Index. The index tracks the performance of midstream energy Master Limited Partnerships.
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF		Seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the J.P. Morgan GBI-EMG Core Index (GBIEMCOR), which is comprised of bonds issued by emerging market governments and denominated in the local currency of the issuer.
Vanguard Emerging Markets Government Bond ETF		Seeks to track the performance of a benchmark index that measures the investment return of U.S. dollar-denominated bonds issued by governments and government related issuers in emerging market countries.
Vanguard FTSE Emerging Markets ETF		Seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in emerging market countries.
Vanguard Global ex-U.S. Real Estate ETF		Seeks to track the performance of a benchmark index that measures the investment return of international real estate stocks.
Vanguard REIT ETF		Seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of a benchmark index that measures the performance of publicly traded equity REITs.
Vanguard Total International Bond ETF		Seeks to track the performance of a benchmark index that measures the investment return of investment-grade bonds issued outside of the United States.
WisdomTree Emerging Markets High Dividend ETF		Seeks to track the investment results of high-dividend-yielding companies in the emerging markets region.

The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The Dynamic Equity Fund is registered to offer the following classes of shares: Class A shares, Class C shares, Class Y shares, and Institutional Class shares. The Allocation Funds are registered to offer the following classes of shares: Class A shares, Class C shares and Class Y shares. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment goals, policies, and strategies along with information on the classes of shares currently being offered.

Significant Accounting Policies

The following is a summary of the Funds’ significant accounting policies:

Notes to Financial Statements (Unaudited) (Continued)

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 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
·	Level 2 –	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·	Level 3 –	significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The aggregate value by input level, as of June 30, 2017, 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 the Funds’ Portfolio of Investments, which also includes a breakdown of the Funds’ investments by sector allocation. The Funds did not hold any Level 3 categorized securities during the six months ended June 30, 2017.

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. At June 30, 2017, there were no transfers between Levels 1, 2 and 3 for all Funds.

During the six months ended June 30, 2017, there were no significant changes to the valuation policies and techniques.

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. 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 on the valuation date and are categorized in Level 1. Shares of mutual funds in which the Funds invest are valued at their respective net asset values (“NAV”) as reported by the Underlying Funds and are categorized in Level 1.

Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and generally categorized in Level 2. This may cause the value of the security, if held on

Notes to Financial Statements (Unaudited) (Continued)

the books of a Fund, to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV.

The Funds may use fair value pricing under the following circumstances, among others:

If the value of a security has been materially affected by events occurring before the Fund’s 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 Fund’s 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 (the “Board”) and are generally categorized in Level 3.

Allocation Funds — The Allocation Funds invest in securities of affiliated and unaffiliated funds, the Underlying Funds. The value of an investment in the Allocation Funds is based on the performance of the Underlying Funds in which they invest and the allocation of their assets among those funds. Because the Allocation Funds invest in mutual funds, shareholders of the Allocation Funds indirectly bear a proportionate share of the expenses charged by the Underlying Funds in which they invest as well as their share of the Allocation Funds’ fees and expenses. The principal risks of an investment in the Allocation Funds include the principal risks of investing in the Underlying Funds.

Investment companies — The Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter (“OTC”). An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund’s fees and expenses.

Cash and cash equivalents — The Funds consider liquid assets deposited with a bank, money market funds, and certain short term debt instruments with maturities of 3 months or less to be cash equivalents and are included in the investments on the financial statements. These investments represent amounts held with financial institutions that are readily accessible to pay Fund expenses or investments. Cash and cash equivalents are valued at cost plus accrued interest, which approximates market value. The value of cash equivalents denominated in foreign currencies is determined by converting to U.S. dollars on the date of the Statement of Assets and Liabilities.

Securities sold short — The Dynamic Equity Fund engages in selling securities short, which obligates the Fund to replace a security borrowed by purchasing the same security at the current market value. The Fund would incur a loss if the price of the security increases between the date of the short sale and the date on which

Notes to Financial Statements (Unaudited) (Continued)

the Fund replaces the borrowed security. The Fund would realize a gain if the price of the security declines between those dates. As of June 30, 2017, the Dynamic Equity Fund had securities sold short with a fair value of $(23,903,504) and pledged securities with a fair value of $143,135,327 as collateral and pledged cash collateral of $523,775 for both securities sold short and written options.

Options — The Dynamic Equity 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 and/or purchasing call or put 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 (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. As of June 30, 2017, the Dynamic Equity Fund held written options with a fair value of $(1,518,478) and pledged securities with a fair value of $143,135,327 as collateral and pledged cash collateral of $523,775 for both securities sold short and written options.

Real Estate Investment Trusts — The Dynamic Equity Fund 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.

Master Limited Partnership — The Funds may invest in Master Limited Partnership (“MLP”) common units that represent limited partnership interests in the MLP. Common units are generally listed and traded on U.S. securities exchanges or OTC with their value fluctuating predominantly based on the success of the MLP. Unlike owners of common stock of a corporation, owners of MLP common units have limited voting rights and have no ability to annually elect directors. MLPs generally distribute all available cash flow (cash flow from operations less maintenance capital expenditures) in the form of quarterly distributions. Common unit holders have first priority to receive quarterly cash distributions up to the minimum quarterly distribution and have arrearage rights. Distributions received from MLPs generally are comprised of income and return of capital. Investment income and return of capital are recorded based on estimates made at the time distributions are received. The actual amounts of income and return of capital are only determined by each MLP after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts

Notes to Financial Statements (Unaudited) (Continued)

when the amounts are determined. In the event of liquidation, common unit holders have preference over subordinated units, but not debt holders or preferred unit holders, to the remaining assets of the MLP.

Derivative instruments and hedging activities — The Dynamic Equity 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 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, are 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.

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 to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).

For financial reporting purposes, the Dynamic Equity Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

As of June 30, 2017, the Dynamic Equity Fund’s assets and liabilities that were subject to a MNA on a gross basis were as follows:

	Assets		Liabilities
Derivative Financial Instruments:
Written Options	$	—	$	1,518,478
Total gross amount of assets and liabilities subject to MNA	$	—	$	1,518,478

Notes to Financial Statements (Unaudited) (Continued)

The following table presents the Dynamic Equity Fund’s liabilities net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of June 30, 2017:

			Gross Amounts
			Available for Offset
	Gross Amount of		in Statement of		Non-cash
	Recognized		Assets and		Collateral			Cash Collateral
	Liabilities		Liabilities		Pledged			Pledged			Net Amount^(B)
Written Options^(A)	$	1,518,478	$	—	$	(1,487,192	)	$	(31,286	)	$	—

(A) Pershing LLC is the counterparty.

(B) Net amount represents the net amount payable due to the counterparty in the event of default.

The following table sets forth the fair value of the Dynamic Equity Fund’s derivative financial instruments by primary risk exposure as of June 30, 2017:

Fair Value of Derivative Investments
As of June 30, 2017
	Derivatives not accounted for as hedging	Asset		Liability
Fund	instruments under ASC 815	Derivatives		Derivatives*
Dynamic Equity Fund	Written Options - Equity Contracts*	$	—	$	1,518,478

* Statements of Assets and Liabilities Location: Written options, at market value.

The following table sets forth the effect on the Dynamic Equity Fund’s derivative financial instruments by primary risk exposure on the Statement of Operations for the six months ended June 30, 2017:

The Effect of Derivative Investments on the Statement of Operations
for the six months Ended June 30, 2017
					Change in
					Unrealized
		Realized Gains			Appreciation
	Derivatives not accounted for as hedging	(Losses)			(Depreciation)
Fund	instruments under ASC 815	on Derivatives			on Derivatives
Dynamic Equity Fund	Purchased Options -Equity Contracts*	$	(43,612	)	$	—
	Written Options - Equity Contacts**		(4,082,860	)		554,542

* Statements of Operations Location: Net realized gains on investments from non-affiliated securities.

** Statements of Operations Location: Net realized losses on written options and net change in unrealized appreciation (depreciation) on written options, respectively.

For the six months ended June 30, 2017, the average quarterly balances of outstanding derivative financial instruments were as follows:

	Dynamic
	Equity
Fund	Fund
Equity contracts:
Purchased Options - Cost*	$	—
Written Options - Premiums received		1,837,721

* The balance at each quarter end was zero.

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.

Notes to Financial Statements (Unaudited) (Continued)

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 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. Additionally, purchases of 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.

Distributions to shareholders — Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. The Dynamic Equity Fund declares and distributes net investment income, if any, annually as a dividend to shareholders. The Allocation Funds each declare and distribute net investment income, if any, quarterly 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 from investments in Underlying Funds is affected by the timing of dividend declarations by the Underlying Funds.

Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds in the Trust, and, if applicable, Touchstone Funds Group Trust, Touchstone Institutional Funds Trust and Touchstone Variable Series Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.

Security transactions — Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.

Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Regulatory Updates — In October 2016, the Securities and Exchange Commission (the “SEC”) released its Final Rule on Investment Company Reporting Modernization (the “Rule”). The Rule contains amendments to Regulation S-X which impact financial statement presentation, particularly the presentation of derivative investments. Although still evaluating the impact of the Rule, management believes that many of the Regulation S-X amendments are materially consistent with the Funds’ current financial statement presentation and expects that the Funds will comply with the Rule’s Regulation S-X amendments for financial statements with periods ending on or after August 1, 2017.

Investment Transactions

Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended June 30, 2017:

Notes to Financial Statements (Unaudited) (Continued)

			Controlled		Dynamic		Dynamic
	Dynamic		Growth with		Diversified		Global
	Equity		Income		Income		Allocation
	Fund		Fund		Fund		Fund
Purchases of investment securities	$	184,338,691	$	6,898,597	$	6,343,827	$	18,573,672
Proceeds from sales and maturities	$	215,415,224	$	7,883,177	$	11,056,036	$	31,906,618

There were no purchases or proceeds from sales and maturities of U.S. Government securities by the Funds for the six months ended June 30, 2017.

4. Transactions with Affiliates and Other Related Parties

Certain officers of the Trust are also officers of Touchstone Advisors, Inc. (the “Advisor”),Touchstone Securities, Inc. (the “Underwriter”), or The Bank of New York Mellon, the Sub-Administrator to the Funds and BNY Mellon Investment Servicing (U.S.) Inc., the Transfer Agent to the Funds (collectively referenced to herein as “BNY Mellon”). Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned, indirect subsidiaries of Western & Southern Financial Group, Inc.

On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $30,980 for the six months ended June 30, 2017.

MANAGEMENT & EXPENSE LIMITATION AGREEMENTS

The Advisor provides general investment supervisory services for the Funds, under terms of an advisory agreement (the “Advisory Agreement”). Under the Advisory Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.

Dynamic Equity Fund	0.85% on the first $300 million of assets
	0.80% on the next $200 million of assets
	0.75% on the next $250 million of assets
	0.70% on the next $250 million of assets
	0.65% on the next $500 million of assets
	0.60% on the next $500 million of assets
	0.55% on such assets over $2 billion
Controlled Growth with Income Fund	0.20% on the first $1 billion of assets
Dynamic Diversified Income Fund	0.175% on the next $1 billion of assets
	0.15% on the next $1 billion of assets
	0.125% on such assets over $3 billion
Dynamic Global Allocation Fund	0.25% on the first $1 billion of assets
	0.225% on the next $1 billion of assets
	0.20% on the next $1 billion of assets
	0.175% on such assets over $3 billion

Notes to Financial Statements (Unaudited) (Continued)

The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):

Analytic Investors, LLC	Wilshire Associates Incorporated
Dynamic Equity Fund	Controlled Growth with Income Fund
	Dynamic Diversified Income Fund
	Dynamic Global Allocation Fund

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 annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to separately waive class-level expenses, advisory fees and administration fees, and to reimburse expenses in order to maintain the following expense limitations for the Funds:

										Institutional			Termination
Fund	Class A			Class C			Class Y			Class			Date
Dynamic Equity Fund		1.55	%		2.30	%		1.30	%		1.25	%	April 30, 2018
Controlled Growth with Income Fund		0.49	%		1.24	%		0.24	%		—		April 30, 2018
Dynamic Diversified Income Fund		0.49	%		1.24	%		0.24	%		—		April 30, 2018
Dynamic Global Allocation Fund		0.49	%		1.24	%		0.24	%		—		April 30, 2018

During the six months ended June 30, 2017, 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				Expenses
	Fees		Administration		Reimbursed/
Fund	Waived		Fees Waived		Waived		Total
Dynamic Equity Fund	$	—	$	—	$	10,012	$	10,012
Controlled Growth with Income Fund		21,254		27,270		57,072		105,596
Dynamic Diversified Income Fund		20,174		44,982		70,273		135,429
Dynamic Global Allocation Fund		52,740		86,164		116,945		255,849

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 the waiver or reimbursement.

As of June 30, 2017, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:

	Expiration		Expiration		Expiration		Expiration
	December 31,		December 31,		December 31,		December 31,
Fund	2017		2018		2019		2020		Total
Controlled Growth with Income Fund	$	191,617	$	147,979	$	135,822	$	73,263	$	548,681

Notes to Financial Statements (Unaudited) (Continued)

	Expiration		Expiration		Expiration		Expiration
	December 31,		December 31,		December 31,		December 31,
Fund	2017		2018		2019		2020		Total
Dynamic Diversified Income Fund	$	297,198	$	229,335	$	198,988	$	82,993	$	808,514
Dynamic Global Allocation Fund		407,649		332,780		352,954		159,622		1,253,005

ADMINISTRATION AGREEMENT

The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with, the SEC and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.

For its services, the Advisor’s annual administrative fee is:

0.145% on the first $20 billion of the aggregate average daily net assets;

0.11% on the next $10 billion of aggregate average daily net assets;

0.09% on the next $10 billion of aggregate average daily net assets; and

0.07% on the aggregate average daily net assets over $40 billion.

The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.

The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.

TRANSFER AGENT AGREEMENT

Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.

The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.

PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS

The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares. Under the

Notes to Financial Statements (Unaudited) (Continued)

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 underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Underwriter and the Advisor, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Underwriter and its affiliate during the six months ended June 30, 2017:

Fund	Amount
Dynamic Equity Fund	$	702
Controlled Growth with Income Fund		1,000
Dynamic Diversified Income Fund		6,562
Dynamic Global Allocation Fund		8,478

In addition, the Underwriter collected CDSC on the redemption of Class C shares of the Funds listed below during the six months ended June 30, 2017:

Fund	Amount
Dynamic Equity Fund	$	780
Controlled Growth with Income Fund		77
Dynamic Diversified Income Fund		127
Dynamic Global Allocation Fund		157

INTERFUND TRANSACTIONS

The Funds may engage in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common Trustees and/or common Officers. During the six months ended, June 30, 2017, the Funds did not engage in any Rule 17a-7 transactions under the 1940 Act.

AFFILIATED INVESTMENTS

A summary of each Allocation Fund’s transactions in affiliated Underlying Funds during the six months ended June 30, 2017 is as follows:

Controlled Growth with Income Fund

	Purchases at		Proceeds		Market Value		Dividend		Net Realized
Underlying Fund*	cost		from sales		06/30/17		Income		Gain(Loss)
Touchstone Credit Opportunities Fund	$	1,504,401	$	844,594	$	6,535,569	$	145,367	$	45,863
Touchstone Flexible Income Fund		1,141,706		1,196,266		9,276,106		133,162		30,638
Touchstone High Yield Fund		275,971		1,087,775		2,309,492		54,203		19,022
Touchstone Arbitrage Fund		1,097,015		1,270,892		9,623,681		—		11,087
Touchstone Dynamic Equity Fund		802,974		1,248,385		8,349,511		—		47,444
Touchstone Focused Fund		1,940,427		36,036		1,923,567		—		286
Touchstone Premium Yield Equity Fund, Class Y		85,768		2,146,964		—		16,008		151,624
Total:	$	6,848,262	$	7,830,912	$	38,017,926	$	348,740	$	305,964

Notes to Financial Statements (Unaudited) (Continued)

Dynamic Diversified Income Fund

	Purchases at		Proceeds		Market Value		Dividend		Net Realized
Underlying Fund*	cost		from sales		06/30/17		Income		Gain(Loss)
Touchstone Credit Opportunities Fund	$	2,385,574	$	2,071,517	$	14,014,931	$	327,949	$	109,160
Touchstone Flexible Income Fund		627,237		940,222		6,064,876		90,301		24,427
Touchstone High Yield Fund		273,026		3,340,290		7,337,715		188,934		127,301
Touchstone Total Return Bond Fund		749,914		1,047,643		9,756,644		144,506		(3,764	)
Touchstone International Value Fund		183,973		535,589		2,428,402		78,917		9,160
Touchstone Premium Yield Equity Fund, Class Y		238,097		1,353,980		4,856,932		73,608		58,885
Touchstone Value Fund		62,949		587,629		3,113,695		29,769	$	100,701
Total:	$	4,520,770	$	9,876,870	$	47,573,195	$	933,984	$	425,870

Dynamic Global Allocation Fund

	Purchases at		Proceeds		Market Value		Dividend		Net Realized
Underlying Fund*	cost		from sales		06/30/17		Income		Gain(Loss)
Touchstone International Growth Fund	$	1,553,844	$	932,876	$	9,210,846	$	—	$	58,511
Touchstone International Small Cap Fund		58,172		348,444		2,423,504		—		97,367
Touchstone International Value Fund		393,670		2,249,187		12,092,498		385,980		31,873
Touchstone Mid Cap Fund		186,397		947,075		4,563,504		—		176,323
Touchstone Sands Capital Emerging Markets Growth Fund		256,718		767,534		3,505,333		—		19,247
Touchstone Sands Capital Institutional Growth Fund		890,771		4,827,620		6,002,840		—		183,713
Touchstone Small Cap Value Opportunities Fund		158,799		428,933		2,232,733		—		3,948
Touchstone Value Fund		2,815,559		5,641,485		11,750,821		129,358		2,624,758
Touchstone Credit Opportunities Fund		154,427		1,940,938		4,353,090		112,929		105,053
Touchstone High Yield Fund		86,917		442,506		3,442,862		84,820		17,524
Touchstone Total Return Bond Fund		1,040,538		5,892,837		21,804,919		357,135		(19,426	)
Touchstone Ultra Short Duration Fixed Income Fund		4,752,859		149,676		4,603,184		15,035		1
Touchstone Dynamic Equity Fund		157,598		5,542,020		4,563,976		—		197,017
Touchstone Growth Opportunities Fund		3,548,018		112,257		3,549,720		—		2,644
Total:	$	16,054,287	$	30,223,388	$	94,099,830	$	1,085,257	$	3,498,553

*All affiliated fund investments are in Institutional Class shares, unless otherwise indicated.

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

Notes to Financial Statements (Unaudited) (Continued)

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 for the years ended December 31, 2016 and December 31, 2015 are as follows:

	Dynamic				Controlled Growth
	Equity Fund				with Income Fund
	Year Ended		Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,		December 31,
	2016		2015		2016		2015
From ordinary income	$	758,846	$	95,614	$	726,570	$	534,451
From long-term capital gains		—		—		12,801		—
Total distributions	$	758,846	$	95,614	$	739,371	$	534,451

	Dynamic Diversified				Dynamic Global
	Income Fund				Allocation Fund
	Year Ended		Year Ended		Year Ended		Year Ended
	December 31,		December 31,		December 31,		December 31,
	2016		2015		2016		2015
From ordinary income	$	2,523,053	$	1,027,948	$	3,789,911	$	1,874,238
From long-term capital gains		—		—		4,025,301		3,439,667
Total distributions	$	2,523,053	$	1,027,948	$	7,815,212	$	5,313,905

The following information is computed on a tax basis for each item as of December 31, 2016:

	Dynamic			Controlled Growth
	Equity Fund			with Income Fund
Tax cost of portfolio investments	$	165,819,506		$	38,130,074
Gross unrealized appreciation		8,995,736			714,586
Gross unrealized depreciation		(3,784,613	)		(13,591	)
Net unrealized appreciation (depreciation)		5,211,123			700,995
Net unrealized appreciation (depreciation) on written options and short sales		550,296			—
Capital loss carryforwards		(77,442,009	)		—
Qualified late-year losses		(1,105,637	)		—
Undistributed ordinary income		1,986,916			5,015
Undistributed capital gains		—			230,288
Accumulated earnings (deficit)	$	(70,799,311	)	$	936,298

	Dynamic Diversified			Dynamic Global
	Income Fund			Allocation Fund
Tax cost of portfolio investments	$	63,832,499		$	122,698,879
Gross unrealized appreciation		1,332,770			5,231,924
Gross unrealized depreciation		(1,181,622	)		(5,380,583	)
Net unrealized appreciation (depreciation)		151,148			(148,659	)
Capital loss carryforwards		(12,864,477	)		(5,271,881	)
Undistributed ordinary income		81,715			—
Accumulated earnings (deficit)	$	(12,631,614	)	$	(5,420,540	)

Notes to Financial Statements (Unaudited) (Continued)

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, non-REIT return of capital outstanding and a non taxable transfer.

As of December 31, 2016, the Funds had the following capital loss carryforwards for federal income tax purposes:

	Short Term Expiring In*						No Expiration		No Expiration
	2017			2018			Short Term*		Long Term*		Total
Dynamic Equity Fund	$	77,442,009		$	—		$	—	$	—	$	77,442,009
Dynamic Diversified Income Fund		8,025,856			4,801,366	**		—		37,255		12,864,477
Dynamic Global Allocation Fund		1,082,641	**		4,189,240	**		—		—		5,271,881

* 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 December 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 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.

**May be subject to limitation.

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.

The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended December 31, 2013 through 2016) and have concluded that no provision for income tax is required in their financial statements.

As of June 30, 2017, the Trust had the following federal tax costs resulting in net appreciation (depreciation) as follows:

			Gross		Gross			Net
	Federal Tax		Unrealized		Unrealized			Unrealized
Fund	Cost		Appreciation		Depreciation			Appreciation
Dynamic Equity Fund	$	142,029,375	$	6,883,903	$	(2,846,764	)	$	4,037,139
Controlled Growth with Income Fund		37,438,113		979,735		—			979,735
Dynamic Diversified Income Fund		59,507,150		1,981,597		(641,802	)		1,339,795
Dynamic Global Allocation Fund		112,886,004		5,333,294		(1,530,836	)		3,802,458

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. Principal Risks

Risks Associated with Concentration — Certain Funds 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.

Notes to Financial Statements (Unaudited) (Continued)

Risks Associated with Credit — An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.

Risks Associated with Interest Rate Changes — 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. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.

Risks Associated with Leverage — By investing the proceeds received from selling securities short, the Dynamic Equity Fund is employing leverage, which creates special risks. The use of leverage may increase the Fund’s exposure to long or short equity positions and may cause the Fund’s NAV to be more volatile than if the Fund had not used leverage. This could result in increased volatility of returns.

Please see the Funds’ prospectus for a complete discussion of these and other risks.

8. Subsequent Events

Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date the financial statements were issued. There were no subsequent events that necessitated recognition or disclosure in the Funds’ financial statements.

Other Items (Unaudited)

Proxy Voting Guidelines and Proxy Voting Records

The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge upon request 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 at 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 (January 1, 2017 through June 30, 2017).

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 June 30, 2017” 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.

Other Items (Unaudited) (Continued)

		Net Expense			Beginning		Ending			Expenses
		Ratio			Account		Account			Paid During
		Annualized			Value		Value			the Six Months
		June 30,			January 1,		June 30,			Ended
		2017			2017		2017			June 30, 2017*
Touchstone Dynamic Equity Fund
Class A	Actual		1.85	%	$	1,000.00	$	1,001.32		$	9.18	**
Class A	Hypothetical		1.85	%	$	1,000.00	$	1,015.62		$	9.25	**

Class C	Actual		2.60	%	$	1,000.00	$	997.86		$	12.88	**
Class C	Hypothetical		2.60	%	$	1,000.00	$	1,011.90		$	12.97	**

Class Y	Actual		1.51	%	$	1,000.00	$	1,003.24		$	7.50	**
Class Y	Hypothetical		1.51	%	$	1,000.00	$	1,017.31		$	7.55	**

Institutional Class	Actual		1.53	%	$	1,000.00	$	1,003.23		$	7.60	**
Institutional Class	Hypothetical		1.53	%	$	1,000.00	$	1,017.21		$	7.65	**

Touchstone Controlled Growth with Income Fund***
Class A	Actual		0.49	%	$	1,000.00	$	1,022.18		$	2.46
Class A	Hypothetical		0.49	%	$	1,000.00	$	1,022.36		$	2.46

Class C	Actual		1.24	%	$	1,000.00	$	1,019.09		$	6.21
Class C	Hypothetical		1.24	%	$	1,000.00	$	1,018.65		$	6.21

Class Y	Actual		0.24	%	$	1,000.00	$	1,023.52		$	1.20
Class Y	Hypothetical		0.24	%	$	1,000.00	$	1,023.60		$	1.20
									��
Touchstone Dynamic Diversified Income Fund***
Class A	Actual		0.49	%	$	1,000.00	$	1,042.53		$	2.48
Class A	Hypothetical		0.49	%	$	1,000.00	$	1,022.36		$	2.46

Class C	Actual		1.24	%	$	1,000.00	$	1,038.88		$	6.27
Class C	Hypothetical		1.24	%	$	1,000.00	$	1,018.65		$	6.21

Class Y	Actual		0.24	%	$	1,000.00	$	1,044.49		$	1.22
Class Y	Hypothetical		0.24	%	$	1,000.00	$	1,023.60		$	1.20

Touchstone Dynamic Global Allocation Fund***
Class A	Actual		0.49	%	$	1,000.00	$	1,072.54		$	2.52
Class A	Hypothetical		0.49	%	$	1,000.00	$	1,022.36		$	2.46

Class C	Actual		1.24	%	$	1,000.00	$	1,068.85		$	6.36
Class C	Hypothetical		1.24	%	$	1,000.00	$	1,018.65		$	6.21

Class Y	Actual		0.24	%	$	1,000.00	$	1,074.06		$	1.23
Class Y	Hypothetical		0.24	%	$	1,000.00	$	1,023.60		$	1.20

Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period).

Excluding interest and dividend expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $7.69, $11.39, $6.01 and $6.11, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $7.75, $11.48, $6.06 and $6.16, respectively.

***

The annualized expense ratios for the Allocation Funds do not include fees and expenses of the Underlying Funds in which the Allocation Funds invest.

PRIVACY PROTECTION POLICY

We Respect Your Privacy

Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.

Our Pledge to Our Clients

•

We collect only the information we need to service your account and administer our business.

•

We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information.

•

We make every effort to ensure the accuracy of your information.

We Collect the Following Nonpublic Personal Information About You:

•

Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and

•

Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information.

Categories of Information We Disclose and Parties to Whom We Disclose

We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.

We Place Strict Limits and Controls on the Use and Sharing of Your Information

•

We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business.

•

We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information.

•

We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document.

•

We will not sell your personal information to anyone.

We May Provide Information to Service Your Account

Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.

This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Strategic Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.* and W&S Brokerage Services, Inc.

* Touchstone Securities, Inc. serves as the underwriter to the Touchstone Funds.

A Member of Western & Southern Financial Group^®

The Privacy Protection Policy is not part of the Semi-Annual Report.

Touchstone Investments

Distributor

Touchstone Securities, Inc.*

303 Broadway

Cincinnati, Ohio 45202-4203

800.638.8194

www.touchstoneinvestments.com

Investment Advisor

Touchstone Advisors, Inc.*

303 Broadway

Cincinnati, Ohio 45202-4203

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

4400 Computer Drive

Westborough, Massachusetts 01581

Shareholder Service

800.543.0407

* A Member of Western & Southern Financial Group

TSF-54CC-TST-SAR-1706

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 8/18/17

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 8/18/17

By (Signature and Title)* /s/Terrie A. Wiedenheft

Terrie A. Wiedenheft, Controller and Treasurer

(principal financial officer)

Date 8/18/17

^* Print the name and title of each signing officer under his or her signature.

Touchstone Large Company Growth Fund (TSAGX) N-CSRSCertified semi-annual shareholder report (management investment company)