UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03651
Touchstone Strategic Trust
(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Address of principal executive offices) (Zip code)
Jill T. McGruder
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-638-8194
Date of fiscal year end: March 31
Date of reporting period: September 30, 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.
September 30, 2017
(Unaudited)
Semi-Annual Report
Touchstone Strategic Trust
Touchstone Flexible Income Fund
Touchstone Focused Fund
Touchstone Growth Opportunities Fund
Touchstone International Growth Fund
Touchstone International Value Fund
Touchstone Mid Cap Growth Fund
Touchstone Sands Capital Emerging Markets Growth Fund
Touchstone Small Cap Growth Fund
Touchstone Sustainability and Impact Equity Fund
Table of Contents
This report identifies the Funds' investments on September 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.
2 |
Tabular Presentation of Portfolios of Investments (Unaudited)
September 30, 2017
The tables below provide each Fund’s geographic allocation, sector allocation and/or credit quality. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Flexible Income Fund | ||||
Credit Quality* | (% of Fixed Income Securities) | |||
AAA/Aaa | 44.1 | % | ||
AA/Aa | 4.8 | |||
A/A | 18.4 | |||
BBB/Baa | 21.8 | |||
BB/Ba | 8.0 | |||
B/B | 0.1 | |||
Not Rated | 2.8 | |||
100.0 | % | |||
Credit Quality* | (% of Preferred Stocks) | |||
A/A | 10.2 | % | ||
BBB/Baa | 43.0 | |||
BB/Ba | 32.8 | |||
B/B | 6.4 | |||
Not Rated | 7.6 | |||
100.0 | % | |||
Sector Allocation** | (% of Net Assets) | |||
Fixed Income Securities | 80.0 | % | ||
Common Stocks | ||||
Real Estate | 3.4 | |||
Health Care | 1.0 | |||
Industrials | 1.0 | |||
Utilities | 0.9 | |||
Information Technology | 0.7 | |||
Financials | 0.7 | |||
Energy | 0.3 | |||
Consumer Discretionary | 0.2 | |||
Consumer Staples | 0.2 | |||
Preferred Stocks | 3.5 | |||
Exchange Traded Funds | 3.4 | |||
Short-Term Investment Funds | 5.8 | |||
Other Assets/Liabilities (Net) | (1.1 | ) | ||
Total | 100.0 | % | ||
Touchstone Focused Fund | ||||
Sector Allocation** | (% of Net Assets) | |||
Information Technology | 24.6 | % | ||
Consumer Discretionary | 15.6 | |||
Health Care | 14.9 | |||
Financials | 14.5 | |||
Industrials | 10.5 | |||
Energy | 5.0 | |||
Consumer Staples | 4.5 | |||
Real Estate | 4.2 | |||
Telecommunication Services | 2.4 | |||
Materials | 1.8 | |||
Short-Term Investment Funds | 3.8 | |||
Other Assets/Liabilities (Net) | (1.8 | ) | ||
Total | 100.0 | % | ||
Touchstone Growth Opportunities Fund | ||||
Sector Allocation** | (% of Net Assets) | |||
Information Technology | 36.6 | % | ||
Health Care | 18.1 | |||
Consumer Discretionary | 14.4 | |||
Industrials | 10.1 | |||
Financials | 6.2 | |||
Materials | 4.5 | |||
Consumer Staples | 3.5 | |||
Energy | 2.1 | |||
Real Estate | 1.6 | |||
Telecommunication Services | 1.0 | |||
Short-Term Investment Funds | 1.0 | |||
Other Assets/Liabilities (Net) | 0.9 | |||
Total | 100.0 | % |
* | Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer. |
** Sector classifications are based upon the Global Industry Classification Standard (GICS®).
3 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone International Growth Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
Cayman Islands | 12.5 | % | ||
Germany | 11.3 | |||
Japan | 8.8 | |||
France | 8.5 | |||
Canada | 7.9 | |||
Netherlands | 6.8 | |||
Switzerland | 6.3 | |||
Singapore | 4.8 | |||
United Kingdom | 4.6 | |||
India | 3.9 | |||
Sweden | 3.8 | |||
Denmark | 3.1 | |||
South Africa | 2.3 | |||
Ireland | 1.9 | |||
Spain | 1.9 | |||
Philippines | 1.8 | |||
Taiwan | 1.7 | |||
Brazil | 1.6 | |||
Panama | 1.5 | |||
Mexico | 1.3 | |||
Luxembourg | 1.0 | |||
Belgium | 0.7 | |||
Short-Term Investment Funds | 4.7 | |||
Other Assets/Liabilities (Net) | (2.7 | ) | ||
Total | 100.0 | % | ||
Touchstone International Value Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
United Kingdom | 17.3 | % | ||
Netherlands | 14.1 | |||
Germany | 12.9 | |||
Japan | 12.7 | |||
France | 8.1 | |||
Italy | 4.6 | |||
South Korea | 4.0 | |||
Switzerland | 3.9 | |||
Singapore | 3.4 | |||
United States | 2.5 | |||
Brazil | 2.2 | |||
Austria | 2.0 | |||
Ireland | 2.0 | |||
Spain | 1.9 | |||
Malaysia | 1.7 | |||
Australia | 1.6 | |||
Taiwan | 1.0 | |||
Hong Kong | 0.8 | |||
Bermuda | 0.7 | |||
Colombia | 0.5 | |||
Czech Republic | 0.1 | |||
Short-Term Investment Funds | 2.4 | |||
Other Assets/Liabilities (Net) | (0.4 | ) | ||
Total | 100.0 | % | ||
Touchstone Mid Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 26.2 | % | ||
Industrials | 17.2 | |||
Health Care | 16.1 | |||
Consumer Discretionary | 14.5 | |||
Financials | 7.8 | |||
Materials | 4.8 | |||
Real Estate | 4.0 | |||
Consumer Staples | 3.3 | |||
Energy | 3.1 | |||
Short Term Investment Funds | 3.6 | |||
Other Assets/Liabilities (Net) | (0.6 | ) | ||
Total | 100.0 | % |
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
4 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Sands Capital Emerging Markets Growth Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
India | 30.0 | % | ||
Cayman Islands | 19.6 | |||
China | 6.3 | |||
South Africa | 5.9 | |||
South Korea | 4.1 | |||
Netherlands | 4.0 | |||
United States | 3.7 | |||
Philippines | 3.0 | |||
Indonesia | 2.8 | |||
Brazil | 2.6 | |||
Taiwan | 2.4 | |||
Thailand | 2.3 | |||
Peru | 2.1 | |||
Virgin Islands (British) | 2.0 | |||
Russia | 1.8 | |||
United Kingdom | 1.7 | |||
Malaysia | 1.0 | |||
Mexico | 0.9 | |||
Short-Term Investment Funds | 5.7 | |||
Other Assets/Liabilities (Net) | (1.9 | ) | ||
Total | 100.0 | % | ||
Touchstone Small Cap Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 28.4 | % | ||
Health Care | 24.2 | |||
Industrials | 14.3 | |||
Consumer Discretionary | 12.8 | |||
Financials | 7.4 | |||
Materials | 4.2 | |||
Real Estate | 3.8 | |||
Energy | 2.4 | |||
Short-Term Investment Funds | 5.3 | |||
Other Assets/Liabilities (Net) | (2.8 | ) | ||
Total | 100.0 | % | ||
Touchstone Sustainability and Impact Equity Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
United States | 44.8 | % | ||
Japan | 10.6 | |||
United Kingdom | 6.9 | |||
Germany | 4.7 | |||
France | 4.4 | |||
Cayman Islands | 3.9 | |||
Netherlands | 3.3 | |||
Sweden | 3.1 | |||
Liberia | 2.4 | |||
Switzerland | 2.1 | |||
Mexico | 1.8 | |||
Ireland | 1.7 | |||
South Korea | 1.6 | |||
Jersey | 1.4 | |||
Korea | 1.0 | |||
Italy | 0.9 | |||
Indonesia | 0.7 | |||
India | 0.7 | |||
Belgium | 0.5 | |||
Exchange Traded Funds | 1.9 | |||
Short-Term Investment Fund | 1.5 | |||
Other Assets/Liabilities (Net) | 0.1 | |||
Total | 100.0 | % |
* Sector classifications are based upon the Global Industry Classification Standard (GICS®).
5 |
Touchstone Flexible Income Fund – September 30, 2017 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 51.0% | ||||||||
Financials — 24.5% | ||||||||
$ | 6,765,000 | Aflac, Inc., 2.875%, 10/15/26 | $ | 6,635,793 | ||||
2,000,000 | Allstate Corp. (The), 5.750%, 8/15/53 | 2,195,000 | ||||||
375,000 | American Financial Group, Inc., | |||||||
9.875%, 6/15/19 | 420,881 | |||||||
12,600,000 | Australia & New Zealand Banking | |||||||
Group Ltd/United Kingdom | ||||||||
(Australia), 144a, 6.750%(A) | 14,238,000 | |||||||
3,480,000 | Bank of New York Mellon Corp. (The), | |||||||
Ser E, 4.950%(A) | 3,612,675 | |||||||
5,265,000 | Berkshire Hathaway, Inc., | |||||||
3.125%, 3/15/26 | 5,324,727 | |||||||
7,450,000 | BNP Paribas SA (France), 144a, | |||||||
6.750%(A) | 7,962,188 | |||||||
10,602,000 | Catlin Insurance Co. Ltd. (Bermuda), | |||||||
144a, (3M LIBOR +2.975%), | ||||||||
4.281%(A)(B) | 9,992,385 | |||||||
7,780,000 | Charles Schwab Corp. (The), 4.625%(A) | 7,974,500 | ||||||
6,000,000 | Credit Agricole SA (France), 144a, | |||||||
8.125%(A) | 7,102,500 | |||||||
657,111 | Doric Nimrod Air Finance Alpha Ltd. | |||||||
2012-1 Class B Pass Through Trust | ||||||||
(Guernsey), 144a, 6.500%, 5/30/19 | 679,134 | |||||||
6,100,000 | Duke Realty LP, 3.250%, 6/30/26 | 6,032,310 | ||||||
11,550,000 | HSBC Holdings PLC (United Kingdom), | |||||||
6.375%(A) | 12,390,956 | |||||||
13,600,000 | ING Groep NV (Netherlands), 6.000%(A) | 14,002,560 | ||||||
9,417,000 | JPMorgan Chase & Co., Ser Z, | |||||||
5.300%(A) | 9,817,222 | |||||||
12,550,000 | Lloyds Banking Group PLC (United | |||||||
Kingdom), 7.500%(A) | 14,071,688 | |||||||
6,430,000 | MetLife, Inc., Ser C, 5.250%(A) | 6,629,073 | ||||||
1,100,000 | QBE Insurance Group Ltd., MTN | |||||||
(Australia), 5.875%, 6/17/46 | 1,186,214 | |||||||
13,326,000 | Reinsurance Group of America, Inc., | |||||||
(3M LIBOR +2.665%), | ||||||||
3.985%, 12/15/65(B) | 12,659,700 | |||||||
14,250,000 | Royal Bank of Scotland Group PLC | |||||||
(United Kingdom), 7.500%(A) | 14,923,312 | |||||||
3,150,000 | Societe Generale SA (France), 144a, | |||||||
6.000%(A) | 3,170,632 | |||||||
9,025,000 | Societe Generale SA (France), 144a, | |||||||
7.375%(A) | 9,769,562 | |||||||
5,000,000 | UBS Group AG (Switzerland), 7.125%(A) | 5,313,860 | ||||||
7,100,000 | US Bancorp, Ser I, 5.125%(A) | 7,526,000 | ||||||
2,250,000 | Westpac Banking Corp. (Australia) | |||||||
MTN, 4.322%, 11/23/31 | 2,311,670 | |||||||
185,942,542 | ||||||||
Industrials — 8.7% | ||||||||
4,300,000 | AerCap Global Aviation Trust, 144a, | |||||||
6.500%, 6/15/45 | 4,703,125 | |||||||
558,157 | Air Canada 2013-1 Class A Pass | |||||||
Through Trust (Canada), 144a, | ||||||||
4.125%, 5/15/25 | 593,399 | |||||||
2,745,000 | Asciano Finance Ltd. (Australia), 144a, | |||||||
5.000%, 4/7/18 | 2,783,522 | |||||||
6,331,838 | Continental Airlines 2012-2 Class A | |||||||
Pass Through Trust, | ||||||||
4.000%, 10/29/24 | 6,632,600 | |||||||
6,760,000 | CRH America Finance, Inc., 144a, | |||||||
3.400%, 5/9/27 | 6,790,721 | |||||||
3,861,868 | Delta Air Lines 2002-1 Class G-1 Pass | |||||||
Through Trust, 6.718%, 1/2/23 | 4,334,947 | |||||||
15,260,000 | General Electric Co., Ser D, 5.000%(A) | 16,140,502 | ||||||
3,283,634 | Hawaiian Airlines 2013-1 Class A Pass | |||||||
Through Certificates, | ||||||||
3.900%, 1/15/26 | 3,406,770 | |||||||
7,315,000 | John Deere Capital Corp. MTN, | |||||||
2.800%, 9/8/27 | 7,191,750 | |||||||
2,400,485 | Northwest Airlines 2007-1 Class A Pass | |||||||
Through Trust, 7.027%, 11/1/19 | 2,619,169 | |||||||
1,500,000 | Owens Corning, 3.400%, 8/15/26 | 1,479,124 | ||||||
3,180,000 | Owens Corning, 4.200%, 12/15/22 | 3,374,520 | ||||||
5,496,380 | US Airways 2012-2 Class A Pass | |||||||
Through Trust, 4.625%, 6/3/25 | 5,881,126 | |||||||
65,931,275 | ||||||||
Consumer Discretionary — 4.6% | ||||||||
7,455,000 | Amazon.com, Inc., 144a, | |||||||
3.150%, 8/22/27 | 7,508,234 | |||||||
6,680,000 | CalAtlantic Group, Inc., 5.250%, 6/1/26 | 6,913,800 | ||||||
6,780,000 | Home Depot, Inc. (The), | |||||||
4.200%, 4/1/43 | 7,227,447 | |||||||
5,195,000 | Time Warner, Inc., 3.875%, 1/15/26 | 5,258,562 | ||||||
7,680,000 | Toll Brothers Finance Corp., | |||||||
4.375%, 4/15/23 | 8,025,600 | |||||||
34,933,643 | ||||||||
Information Technology — 2.7% | ||||||||
3,605,000 | Alphabet, Inc., 1.998%, 8/15/26 | 3,386,634 | ||||||
2,500,000 | Altera Corp., 2.500%, 11/15/18 | 2,525,504 | ||||||
7,100,000 | Applied Materials, Inc., 3.300%, 4/1/27 | 7,231,500 | ||||||
6,520,000 | Microsoft Corp., 4.450%, 11/3/45 | 7,342,906 | ||||||
20,486,544 | ||||||||
Consumer Staples — 2.7% | ||||||||
7,220,000 | Archer-Daniels-Midland Co., | |||||||
2.500%, 8/11/26 | 6,927,311 | |||||||
6,745,000 | CVS Health Corp., 2.125%, 6/1/21 | 6,682,623 | ||||||
7,150,000 | Kroger Co. (The), 2.650%, 10/15/26† | 6,539,209 | ||||||
20,149,143 | ||||||||
Telecommunication Services — 2.2% | ||||||||
7,210,000 | AT&T, Inc., 3.900%, 8/14/27 | 7,224,035 | ||||||
9,760,000 | Viacom, Inc., 5.875%, 2/28/57† | 9,760,000 | ||||||
16,984,035 | ||||||||
Energy — 2.2% | ||||||||
6,810,000 | Boardwalk Pipelines LP, | |||||||
4.450%, 7/15/27 | 6,933,884 | |||||||
7,070,000 | Buckeye Partners LP, 3.950%, 12/1/26 | 6,974,851 | ||||||
1,500,000 | Enterprise Products Operating LLC, | |||||||
Ser D, 4.875%, 8/16/77 | 1,507,500 |
6 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 51.0% (Continued) | ||||||||
Energy — (Continued) | ||||||||
$ | 1,500,000 | Enterprise Products Operating LLC, | ||||||
Ser E, 5.250%, 8/16/77 | $ | 1,513,125 | ||||||
16,929,360 | ||||||||
Utilities — 2.0% | ||||||||
7,190,000 | American Water Capital Corp., | |||||||
2.950%, 9/1/27 | 7,163,511 | |||||||
1,300,000 | NextEra Energy Capital Holdings, Inc., | |||||||
(3M LIBOR +2.068%), | ||||||||
3.403%, 10/1/66(B) | 1,235,000 | |||||||
2,700,000 | NextEra Energy Capital Holdings, Inc., | |||||||
(3M LIBOR +2.125%), | ||||||||
3.445%, 6/15/67(B) | 2,558,250 | |||||||
4,001,000 | WEC Energy Group, Inc., (3M LIBOR | |||||||
+2.113%), 3.428%, 5/15/67(B) | 3,840,920 | |||||||
14,797,681 | ||||||||
Health Care — 1.1% | ||||||||
6,040,000 | Eli Lilly & Co., 3.100%, 5/15/27 | 6,074,892 | ||||||
2,090,000 | Medtronic, Inc., 3.150%, 3/15/22 | 2,164,096 | ||||||
8,238,988 | ||||||||
Real Estate — 0.3% | ||||||||
2,101,000 | DDR Corp., MTN, REIT, 7.500%, 7/15/18 | 2,184,815 | ||||||
Total Corporate Bonds | $ | 386,578,026 | ||||||
Asset-Backed Securities — 11.6% | ||||||||
1,375,000 | Ally Master Owner Trust, Ser 2015-3, | |||||||
Class A, 1.630%, 5/15/20 | 1,375,629 | |||||||
3,997,623 | American Homes 4 Rent Trust, Ser | |||||||
2014-SFR2, Class A, 144a, | ||||||||
3.786%, 10/17/36 | 4,179,823 | |||||||
5,435,000 | Cabela's Credit Card Master Note | |||||||
Trust, Ser 2013-1A, Class A, 144a, | ||||||||
2.710%, 2/17/26 | 5,466,077 | |||||||
6,385,000 | Capital Auto Receivables Asset Trust, | |||||||
Ser 2013-4, Class E, 144a, | ||||||||
3.830%, 7/20/22 | 6,419,173 | |||||||
5,400,000 | Chrysler Capital Auto Receivables | |||||||
Trust, Ser 2013-AA, Class C, 144a, | ||||||||
2.280%, 7/15/19 | 5,407,541 | |||||||
2,495,000 | Chrysler Capital Auto Receivables | |||||||
Trust, Ser 2013-AA, Class D, 144a, | ||||||||
2.930%, 8/17/20 | 2,503,340 | |||||||
1,105,000 | Chrysler Capital Auto Receivables | |||||||
Trust, Ser 2014-AA, Class D, 144a, | ||||||||
2.640%, 7/15/21 | 1,106,900 | |||||||
1,090,000 | CNH Equipment Trust, Ser 2013-D, | |||||||
Class B, 1.750%, 4/15/21 | 1,090,317 | |||||||
515,319 | Conseco Financial Corp., Ser 1998-4, | |||||||
Class A7, 6.870%, 4/1/30(B)(C) | 549,921 | |||||||
2,270,303 | Countrywide Asset-Backed | |||||||
Certificates, Ser 2004-8, Class M1, | ||||||||
(1M LIBOR +1.050%), | ||||||||
2.287%, 1/25/35(B) | 2,282,457 | |||||||
6,700,000 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 2006-FF1, Class M3, (1M | ||||||||
LIBOR +0.310%), 1.547%, 8/25/36(B) | 6,623,639 | |||||||
611,730 | Mid-State Capital Corp. Trust, Ser | |||||||
2005-1, Class M2, 7.079%, 1/15/40 | 668,473 | |||||||
4,815,000 | Newcastle Mortgage Securities Trust, | |||||||
Ser 2006-1, Class M2, (1M LIBOR | ||||||||
+0.370%), 1.607%, 3/25/36(B) | 4,758,525 | |||||||
2,744,000 | Nissan Master Owner Trust | |||||||
Receivables, Ser 2015-A, Class A2, | ||||||||
1.440%, 1/15/20 | 2,743,521 | |||||||
6,325,898 | Nomura Home Equity Loan, Inc. | |||||||
Home Equity Loan Trust, Ser | ||||||||
2005-FM1, Class M2, (1M LIBOR | ||||||||
+0.490%), 1.727%, 5/25/35(B) | 6,362,713 | |||||||
2,240,000 | Oscar US Funding Trust, Ser 2014-1A, | |||||||
Class A4, 144a, 2.550%, 12/15/21 | 2,235,968 | |||||||
3,145,902 | Popular ABS Mortgage Pass-Through | |||||||
Trust, Ser 2004-4, Class AV1, (1M | ||||||||
LIBOR +0.340%), 1.577%, 9/25/34(B) | 3,129,164 | |||||||
2,335,000 | RAMP Trust, Ser 2005-EFC5, Class M3, | |||||||
(1M LIBOR +0.460%), | ||||||||
1.697%, 10/25/35(B) | 2,207,941 | |||||||
8,455,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2014-4, Class D, | ||||||||
3.100%, 11/16/20 | 8,578,595 | |||||||
7,820,000 | Synchrony Credit Card Master Note | |||||||
Trust, Ser 2015-2, Class A, | ||||||||
1.600%, 4/15/21 | 7,823,160 | |||||||
3,122,200 | Tax Ease Funding LLC, Ser 2016-1A, | |||||||
Class A, 144a, 3.131%, 6/15/28 | 3,141,143 | |||||||
1,997,728 | Wells Fargo Home Equity | |||||||
Asset-Backed Securities Trust, Ser | ||||||||
2005-4, Class M1, (1M LIBOR | ||||||||
+0.460%), 1.697%, 12/25/35(B) | 2,003,621 | |||||||
7,420,000 | World Financial Network Credit Card | |||||||
Master Trust, Ser 2013-A, Class A, | ||||||||
1.610%, 12/15/21 | 7,422,401 | |||||||
Total Asset-Backed Securities | $ | 88,080,042 | ||||||
U.S. Treasury Obligations — 10.1% | ||||||||
11,474,400 | U.S. Treasury Bond, 2.250%, 8/15/46 | 10,088,956 | ||||||
14,650,000 | U.S. Treasury Inflation Indexed Bonds, | |||||||
0.375%, 1/15/27 | 14,667,330 | |||||||
7,420,000 | U.S. Treasury Note, 1.375%, 10/31/20 | 7,358,553 | ||||||
25,144,200 | U.S. Treasury Note, 1.500%, 8/15/26 | 23,544,204 | ||||||
3,500,000 | U.S. Treasury Note, 1.750%, 5/31/22 | 3,477,168 | ||||||
6,880,000 | U.S. Treasury Note, 1.875%, 1/31/22 | 6,883,494 | ||||||
10,250,000 | U.S. Treasury Note, 2.000%, 10/31/21 | 10,323,672 | ||||||
Total U.S. Treasury Obligations | $ | 76,343,377 |
7 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Agency Collateralized Mortgage Obligations — 2.9% | ||||||||
$ | 1,358,498 | Fannie Mae REMICs, Ser 2008-60, | ||||||
Class SA, (1M LIBOR +6.500%), | ||||||||
5.263%, 7/25/38(B)(D) | $ | 228,619 | ||||||
32,883,893 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K006, | ||||||||
Class AX1, 1.130%, 1/25/20(B)(C)(D) | 616,876 | |||||||
14,899,140 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K019, | ||||||||
Class X1, 1.820%, 3/25/22(B)(C)(D) | 914,129 | |||||||
26,625,948 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K025, | ||||||||
Class X1, 0.998%, 10/25/22(B)(C)(D) | 965,577 | |||||||
71,762,669 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K033, | ||||||||
Class X1, 0.424%, 7/25/23(B)(C)(D) | 1,157,173 | |||||||
4,235,000 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K048, | ||||||||
Class A2, 3.284%, 6/25/25(B)(C) | 4,417,231 | |||||||
33,337,359 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K710, | ||||||||
Class X1, 1.866%, 5/25/19(B)(C)(D) | 722,591 | |||||||
3,000,000 | FREMF Mortgage Trust, Ser 2012-K19, | |||||||
Class B, 144a, 4.172%, 5/25/45(B)(C) | 3,137,239 | |||||||
1,500,000 | FREMF Mortgage Trust, Ser | |||||||
2013-K712, Class C, 144a, | ||||||||
3.481%, 12/25/45(B)(C) | 1,513,262 | |||||||
5,095,000 | FREMF Mortgage Trust, Ser | |||||||
2013-K713, Class C, 144a, | ||||||||
3.274%, 4/25/46(B)(C) | 5,114,046 | |||||||
1,089,259 | GNMA, Ser 2011-83, Class NI, | |||||||
4.500%, 10/16/37(D) | 34,388 | |||||||
16,183,849 | GNMA, Ser 2012-27, Class IO, | |||||||
1.012%, 4/16/53(B)(C)(D) | 585,109 | |||||||
29,787,808 | GNMA, Ser 2016-110, Class IO, | |||||||
1.037%, 5/16/58(B)(C)(D) | 2,395,842 | |||||||
Total Agency Collateralized | ||||||||
Mortgage Obligations | $ | 21,802,082 | ||||||
Sovereign Government Obligations — 1.9% | ||||||||
9,625,000 | Australian Government Bond | |||||||
(Australia), 2.000%, 12/21/21 | 7,457,138 | |||||||
8,925,000 | Canadian Government Bond | |||||||
(Canada), 0.750%, 8/1/19 | 7,045,582 | |||||||
Total Sovereign Government | ||||||||
Obligations | $ | 14,502,720 | ||||||
Non-Agency Collateralized Mortgage | ||||||||
Obligations — 1.2% | ||||||||
165,753 | Alternative Loan Trust, Ser 2004-30CB, | |||||||
Class 3A1, 5.000%, 2/25/20 | 162,927 | |||||||
1,594,732 | American Home Mortgage | |||||||
Investment Trust, Ser 2004-4, Class | ||||||||
4A, (6M LIBOR +2.000%), | ||||||||
3.453%, 2/25/45(B) | 1,628,406 | |||||||
4,245,729 | Bear Stearns ALT-A Trust 2004-12, Ser | |||||||
2004-12, Class 1M1, (1M LIBOR | ||||||||
+0.930%), 2.167%, 1/25/35(B) | 4,076,805 | |||||||
109,440 | Bear Stearns Asset Backed Securities | |||||||
Trust, Ser 2003-AC7, Class A2, | ||||||||
5.750%, 1/25/34(E) | 111,161 | |||||||
1,680,657 | GSR Mortgage Loan Trust, Ser | |||||||
2005-AR4, Class 6A1, | ||||||||
3.536%, 7/25/35(B)(C) | 1,689,016 | |||||||
743,915 | JP Morgan Mortgage Trust, Ser | |||||||
2014-2, Class 1A1, 144a, | ||||||||
3.000%, 6/25/29(B)(C) | 755,074 | |||||||
6,784 | Merrill Lynch Mortgage Investors, | |||||||
Trust, Ser 2003-A1, Class 2A, (12M | ||||||||
LIBOR +1.625%), | ||||||||
3.337%, 12/25/32(B) | 6,771 | |||||||
434,734 | Morgan Stanley Mortgage Loan Trust, | |||||||
Ser 2004-7AR, Class 2A6, | ||||||||
3.400%, 9/25/34(B)(C) | 445,465 | |||||||
66,628 | RALI Trust, Ser 2004-QS6, Class A1, | |||||||
5.000%, 5/25/19 | 65,860 | |||||||
162,396 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2004-X, Class | ||||||||
1A5, 3.294%, 11/25/34(B)(C) | 165,190 | |||||||
Total Non-Agency Collateralized | ||||||||
Mortgage Obligations | $ | 9,106,675 | ||||||
Commercial Mortgage-Backed Security — 0.8% | ||||||||
6,020,000 | Banc of America Commercial | |||||||
Mortgage Trust, Ser 2015-UBS7, | ||||||||
Class A4, 3.705%, 9/15/48 | $ | 6,289,096 | ||||||
U.S. Government Mortgage-Backed Obligations — 0.3% | ||||||||
47,912 | FHLMC, Pool #G03170, | |||||||
6.500%, 8/1/37 | 54,404 | |||||||
63,989 | FHLMC, Pool #G12780, | |||||||
6.500%, 9/1/22 | 67,815 | |||||||
93,863 | FNMA, Pool #844415, 5.500%, 10/1/35 | 104,997 | ||||||
651,849 | FNMA, Pool #AB1952, | |||||||
4.000%, 12/1/40 | 697,867 | |||||||
462,922 | FNMA, Pool #AB1953, | |||||||
4.000%, 12/1/40 | 494,011 | |||||||
409,225 | FNMA, Pool #AB3387, 4.000%, 8/1/41 | 432,665 | ||||||
41,978 | Freddie Mac Non Gold, Pool #972110, | |||||||
(1 Year CMT Rate +2.225%), | ||||||||
3.218%, 10/1/32(B) | 43,287 | |||||||
Total U.S. Government | ||||||||
Mortgage-Backed Obligations | $ | 1,895,046 | ||||||
U.S. Government Agency Obligation — 0.2% | ||||||||
1,500,000 | FHLMC, 2.375%, 1/13/22 | $ | 1,526,614 |
8 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 8.4% | ||||||||
Real Estate — 3.4% | ||||||||
86,273 | Crown Castle International Corp. REIT | $ | 8,625,575 | |||||
39,595 | Digital Realty Trust, Inc. REIT | 4,685,276 | ||||||
144,404 | Kimco Realty Corp. REIT | 2,823,098 | ||||||
95,686 | MGM Growth Properties LLC, Class A, | |||||||
REIT† | 2,890,674 | |||||||
69,290 | Prologis, Inc. REIT | 4,397,143 | ||||||
31,641 | Ventas, Inc. REIT | 2,060,778 | ||||||
25,482,544 | ||||||||
Health Care — 1.0% | ||||||||
21,785 | AbbVie, Inc. | 1,935,815 | ||||||
24,510 | Gilead Sciences, Inc. | 1,985,800 | ||||||
12,267 | Stryker Corp. | 1,742,159 | ||||||
9,436 | UnitedHealth Group, Inc. | 1,848,041 | ||||||
7,511,815 | ||||||||
Industrials — 1.0% | ||||||||
8,858 | Boeing Co. (The) | 2,251,792 | ||||||
7,495 | General Dynamics Corp. | 1,540,822 | ||||||
12,552 | Illinois Tool Works, Inc. | 1,857,194 | ||||||
9,512 | Raytheon Co. | 1,774,749 | ||||||
7,424,557 | ||||||||
Utilities — 0.9% | ||||||||
66,660 | Dominion Energy, Inc.† | 5,128,154 | ||||||
12,373 | NextEra Energy, Inc. | 1,813,263 | ||||||
6,941,417 | ||||||||
Information Technology — 0.7% | ||||||||
5,969 | Broadcom Ltd. (Singapore) | 1,447,721 | ||||||
17,268 | Texas Instruments, Inc. | 1,547,904 | ||||||
23,652 | Visa, Inc. - Class A | 2,489,136 | ||||||
5,484,761 | ||||||||
Financials — 0.7% | ||||||||
160,890 | AGNC Investment Corp. REIT | 3,488,095 | ||||||
26,062 | Citigroup, Inc. | 1,895,750 | ||||||
5,383,845 | ||||||||
Energy — 0.3% | ||||||||
26,168 | Valero Energy Corp. | 2,013,104 | ||||||
Consumer Discretionary — 0.2% | ||||||||
11,344 | Home Depot, Inc. (The) | 1,855,425 | ||||||
Consumer Staples — 0.2% | ||||||||
39,692 | Coca-Cola Co. (The) | 1,786,537 | ||||||
Total Common Stocks | $ | 63,884,005 | ||||||
Preferred Stocks — 3.5% | ||||||||
Financials — 2.6% | ||||||||
110,000 | AGNC Investment Corp., Ser C, | |||||||
7.000%(A) | 2,842,400 | |||||||
200,875 | Chimera Investment Corp., Ser B, REIT, | |||||||
8.000%(A)† | 5,313,144 | |||||||
59,650 | CoBank ACB, Ser H, 6.200%(A) | 6,442,200 | ||||||
120,000 | Two Harbors Investment Corp., Ser. B, | |||||||
7.625%(A) | 3,138,000 | |||||||
81,375 | WR Berkley Corp., 5.750%, 6/1/56† | 2,134,466 | ||||||
19,870,210 | ||||||||
Industrials — 0.5% | ||||||||
139,438 | Seaspan Corp. (Marshall Island), | |||||||
6.375%, 4/30/19 | 3,614,233 | |||||||
Consumer Staples — 0.4% | ||||||||
103,723 | CHS, Inc., Ser 3, 6.750%(A) | 2,857,569 | ||||||
Total Preferred Stocks | $ | 26,342,012 | ||||||
Exchange Traded Funds — 3.4% | ||||||||
156,753 | iShares Europe ETF | 7,347,013 | ||||||
183,814 | iShares MSCI Japan ETF | 10,240,278 | ||||||
364,887 | VanEck Vectors Gold Miners ETF | 8,377,806 | ||||||
Total Exchange Traded Funds | $ | 25,965,097 | ||||||
Short-Term Investment Funds — 5.8% | ||||||||
30,173,379 | Dreyfus Government Cash | |||||||
Management, Institutional | ||||||||
Shares, 0.92%¥W | 30,173,379 | |||||||
14,000,780 | Invesco Government & Agency | |||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 14,000,780 | |||||||
Total Short-Term Investment Funds | $ | 44,174,159 | ||||||
Total Investment Securities —101.1% | $ | 766,488,951 | ||||||
(Cost $747,679,684) | ||||||||
Liabilities in Excess of Other Assets — (1.1%) | (8,402,386 | ) | ||||||
Net Assets — 100.0% | $ | 758,086,565 |
(A) | Perpetual Bond - A bond with no definite maturity date. |
(B) | Variable rate security - Rate reflected is the rate in effect as of September 30, 2017. |
(C) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(D) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
(E) | Step Bond - A bond that pays an initial interest rate for the first period and then a higher interest rate for the following |
9 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
periods until maturity. The interest rate shown reflects the rate in effect as of September 30, 2017.
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $13,643,067. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
CMT - Constant Maturity Treasury
ETF - Exchange Traded Fund
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FREMF - Finnish Real Estate Management Federation
GNMA - Government National Mortgage Association
ICE - Intercontinental Exchange
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
MTN - Medium Term Note
PLC - Public Limited Company
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
USD - United States Dollar
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2017, these securities were valued at $116,272,988 or 15.3% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Long Positions | ||||||||||||||||
Corporate Bonds | $ | — | $ | 386,578,026 | $ | — | $ | 386,578,026 | ||||||||
Asset-Backed Securities | — | 88,080,042 | — | 88,080,042 | ||||||||||||
U.S. Treasury Obligations | — | 76,343,377 | — | 76,343,377 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 21,802,082 | — | 21,802,082 | ||||||||||||
Sovereign Government Obligations | — | 14,502,720 | — | 14,502,720 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 9,106,675 | — | 9,106,675 | ||||||||||||
Commercial Mortgage-Backed Security | — | 6,289,096 | — | 6,289,096 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 1,895,046 | — | 1,895,046 | ||||||||||||
U.S. Government Agency Obligation | — | 1,526,614 | — | 1,526,614 |
10 |
Touchstone Flexible Income Fund (Unaudited) (Continued)
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets (continued): | ||||||||||||||||
Common Stocks | $ | 63,884,005 | $ | — | $ | — | $ | 63,884,005 | ||||||||
Preferred Stocks | 26,342,012 | — | — | 26,342,012 | ||||||||||||
Exchange Traded Funds | 25,965,097 | — | — | 25,965,097 | ||||||||||||
Short-Term Investment Funds | 44,174,159 | — | — | 44,174,159 | ||||||||||||
Other Financial Instruments*** | ||||||||||||||||
Futures Interest Rate Contracts | 336,049 | — | — | 336,049 | ||||||||||||
Total Assets | $ | 160,701,322 | $ | 606,123,678 | $ | — | $ | 766,825,000 | ||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments*** | ||||||||||||||||
Futures Equity Contracts | (162,023 | ) | — | — | (162,023 | ) | ||||||||||
Total Liabilities | $ | (162,023 | ) | $ | — | $ | — | $ | (162,023 | ) | ||||||
Total | $ | 160,539,299 | $ | 606,123,678 | $ | — | $ | 766,662,977 |
*** Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized appreciation (depreciation) on futures interest rate contracts and futures equity contracts.
Futures Contracts
At September 30, 2017 $2,321,603 was segregated with the broker as collateral for futures contracts. The Fund had the following futures contracts, brokered by Wells Fargo, open at September 30, 2017:
Unrealized | ||||||||||||||||||
Number of | Notional | Appreciation/ | ||||||||||||||||
Description | Expiration Date | Contracts | Value | Value | (Depreciation) | |||||||||||||
Short Futures: | ||||||||||||||||||
Euro-Bond Futures | December 2017 | 193 | $ | 37,032,388 | $ | 36,727,242 | $ | 305,146 | ||||||||||
10-Year JGB Futures | December 2017 | 6 | 8,047,788 | 8,016,885 | 30,903 | |||||||||||||
$ | 44,744,127 | $ | 336,049 | |||||||||||||||
Long Futures: | ||||||||||||||||||
CBOE Volatility Index Futures | December 2017 | 170 | 2,469,773 | 2,307,750 | (162,023 | ) | ||||||||||||
$ | 47,051,877 | $ | 174,026 |
See accompanying Notes to Financial Statements.
11 |
Touchstone Focused Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% | ||||||||
Information Technology — 24.6% | ||||||||
Alphabet, Inc. - Class A* | 16,581 | $ | 16,145,251 | |||||
Alphabet, Inc. - Class C* | 34,961 | 33,531,445 | ||||||
Apple, Inc. | 302,220 | 46,578,146 | ||||||
Avnet, Inc. | 502,467 | 19,746,953 | ||||||
Cisco Systems, Inc. | 585,893 | 19,703,582 | ||||||
Facebook, Inc. - Class A* | 223,561 | 38,199,868 | ||||||
International Business Machines Corp. | 136,647 | 19,824,747 | ||||||
Microsoft Corp. | 562,313 | 41,886,695 | ||||||
Oracle Corp. | 793,656 | 38,373,268 | ||||||
salesforce.com, Inc.* | 274,288 | 25,623,985 | ||||||
299,613,940 | ||||||||
Consumer Discretionary — 15.6% | ||||||||
Amazon.com, Inc.* | 47,997 | 46,141,916 | ||||||
Carnival Corp. (Panama) | 394,191 | 25,452,913 | ||||||
Comcast Corp. - Class A | 680,865 | 26,199,685 | ||||||
Priceline Group, Inc. (The)* | 16,032 | 29,351,706 | ||||||
Twenty-First Century Fox, Inc. - Class A | 954,197 | 25,171,717 | ||||||
Vista Outdoor, Inc.* | 696,493 | 15,977,549 | ||||||
Yum China Holdings, Inc.* | 540,869 | 21,618,534 | ||||||
189,914,020 | ||||||||
Health Care — 14.9% | ||||||||
Biogen, Inc.* | 98,763 | 30,924,671 | ||||||
Bio-Rad Laboratories, Inc. - Class A* | 145,506 | 32,334,343 | ||||||
Bristol-Myers Squibb Co. | 639,535 | 40,763,961 | ||||||
Johnson & Johnson | 246,337 | 32,026,273 | ||||||
Novartis AG ADR | 526,559 | 45,205,090 | ||||||
181,254,338 | ||||||||
Financials — 14.5% | ||||||||
Bank of America Corp. | 987,717 | 25,028,749 | ||||||
Bank of New York Mellon Corp. (The) | 393,997 | 20,889,721 | ||||||
Bank of the Ozarks | 140,286 | 6,740,742 | ||||||
Berkshire Hathaway, Inc. - Class B* | 525,001 | 96,243,183 | ||||||
Goldman Sachs Group, Inc. (The) | 116,068 | 27,530,169 | ||||||
176,432,564 | ||||||||
Industrials — 10.5% | ||||||||
General Electric Co. | 1,332,380 | 32,216,948 | ||||||
Johnson Controls International PLC | ||||||||
(Ireland) | 460,913 | 18,570,185 | ||||||
Stericycle, Inc.* | 295,974 | 21,197,658 | ||||||
Union Pacific Corp. | 242,957 | 28,175,723 | ||||||
United Technologies Corp. | 245,112 | 28,452,601 | ||||||
128,613,115 | ||||||||
Energy — 5.0% | ||||||||
Exxon Mobil Corp. | 225,353 | 18,474,439 | ||||||
Halliburton Co. | 465,649 | 21,433,824 | ||||||
Schlumberger Ltd. (Curacao) | 302,165 | 21,079,030 | ||||||
60,987,293 | ||||||||
Consumer Staples — 4.5% | ||||||||
JM Smucker Co. (The) | 143,156 | 15,021,359 | ||||||
Mondelez International, Inc. - Class A | 419,897 | 17,073,012 | ||||||
Unilever NV (Netherlands) | 387,131 | 22,856,214 | ||||||
54,950,585 | ||||||||
Real Estate — 4.2% | ||||||||
Jones Lang LaSalle, Inc. REIT | 181,925 | 22,467,738 | ||||||
Simon Property Group, Inc. REIT | 180,048 | 28,989,529 | ||||||
51,457,267 | ||||||||
Telecommunication Services — 2.4% | ||||||||
AT&T, Inc. | 739,930 | 28,983,058 | ||||||
Materials — 1.8% | ||||||||
Agrium, Inc. (Canada)† | 210,573 | 22,575,531 | ||||||
Total Common Stocks | $ | 1,194,781,711 | ||||||
Short-Term Investment Funds — 3.8% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 24,476,321 | 24,476,321 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 21,940,191 | 21,940,191 | ||||||
Total Short-Term Investment Funds | $ | 46,416,512 | ||||||
Total Investment Securities —101.8% | ||||||||
(Cost $979,479,366) | $ | 1,241,198,223 | ||||||
Liabilities in Excess of Other Assets — (1.8%) | (22,313,885 | ) | ||||||
Net Assets — 100.0% | $ | 1,218,884,338 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $21,335,219. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
REIT - Real Estate Investment Trust
PLC - Public Limited Company
12 |
Touchstone Focused Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 1,194,781,711 | $ | — | $ | — | $ | 1,194,781,711 | ||||||||
Short-Term Investment Funds | 46,416,512 | — | — | 46,416,512 | ||||||||||||
Total | $ | 1,241,198,223 | $ | — | $ | — | $ | 1,241,198,223 |
See accompanying Notes to Financial Statements.
13 |
Touchstone Growth Opportunities Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.1% | ||||||||
Information Technology — 36.6% | ||||||||
Adobe Systems, Inc.* | 15,810 | $ | 2,358,536 | |||||
Alliance Data Systems Corp. | 15,899 | 3,522,423 | ||||||
Alphabet, Inc. - Class A* | 6,468 | 6,298,021 | ||||||
Alphabet, Inc. - Class C* | 8,465 | 8,118,866 | ||||||
Apple, Inc. | 85,335 | 13,151,830 | ||||||
Cognizant Technology Solutions Corp. - | ||||||||
Class A | 36,390 | 2,639,731 | ||||||
Cypress Semiconductor Corp. | 184,490 | 2,771,040 | ||||||
Facebook, Inc. - Class A* | 55,890 | 9,549,924 | ||||||
InterXion Holding NV (Netherlands)* | 63,390 | 3,228,453 | ||||||
Lam Research Corp. | 16,055 | 2,970,817 | ||||||
Microsemi Corp.* | 61,800 | 3,181,464 | ||||||
Microsoft Corp. | 123,460 | 9,196,535 | ||||||
Orbotech Ltd. (Israel)* | 76,363 | 3,223,282 | ||||||
Palo Alto Networks, Inc.* | 23,745 | 3,421,655 | ||||||
PayPal Holdings, Inc.* | 44,970 | 2,879,429 | ||||||
Red Hat, Inc.* | 42,270 | 4,686,052 | ||||||
salesforce.com, Inc.* | 48,460 | 4,527,133 | ||||||
ServiceNow, Inc.* | 24,150 | 2,838,350 | ||||||
Vantiv, Inc. - Class A* | 41,150 | 2,899,840 | ||||||
Visa, Inc. - Class A | 77,790 | 8,186,620 | ||||||
99,650,001 | ||||||||
Health Care — 18.1% | ||||||||
Abbott Laboratories | 91,440 | 4,879,238 | ||||||
Aclaris Therapeutics, Inc.* | 48,080 | 1,240,945 | ||||||
Biogen, Inc.* | 12,348 | 3,866,406 | ||||||
Celgene Corp.* | 57,640 | 8,405,065 | ||||||
Danaher Corp. | 42,180 | 3,618,200 | ||||||
Eli Lilly & Co. | 49,960 | 4,273,578 | ||||||
Hill-Rom Holdings, Inc. | 61,320 | 4,537,680 | ||||||
Jazz Pharmaceuticals PLC (Ireland)* | 28,085 | 4,107,431 | ||||||
Medicines Co. (The)* | 73,390 | 2,718,366 | ||||||
Mettler-Toledo International, Inc.* | 6,151 | 3,851,510 | ||||||
Nektar Therapeutics* | 62,827 | 1,507,848 | ||||||
Prothena Corp. PLC, (Ireland)*† | 22,570 | 1,461,859 | ||||||
STERIS PLC (United Kingdom) | 52,300 | 4,623,320 | ||||||
49,091,446 | ||||||||
Consumer Discretionary — 14.4% | ||||||||
Amazon.com, Inc.* | 8,841 | 8,499,295 | ||||||
Charter Communications, Inc. - Class A* | 10,804 | 3,926,390 | ||||||
Delphi Automotive PLC (Jersey) | 18,090 | 1,780,056 | ||||||
Home Depot, Inc. (The) | 36,305 | 5,938,046 | ||||||
Installed Building Products, Inc.* | 18,820 | 1,219,536 | ||||||
Lions Gate Entertainment Corp. - Class B | ||||||||
(Canada)* | 78,590 | 2,498,376 | ||||||
Marriott International, Inc. - Class A | 33,170 | 3,657,324 | ||||||
Newell Brands, Inc. | 76,020 | 3,243,773 | ||||||
Priceline Group, Inc. (The)* | 1,742 | 3,189,288 | ||||||
Twenty-First Century Fox, Inc. - Class A | 99,450 | 2,623,491 | ||||||
Vail Resorts, Inc. | 11,665 | 2,661,020 | ||||||
39,236,595 | ||||||||
Industrials — 10.1% | ||||||||
AMETEK, Inc. | 92,720 | 6,123,229 | ||||||
Ferguson PLC ADR | 502,650 | 3,327,543 | ||||||
Ingersoll-Rand PLC, (Ireland) | 44,790 | 3,993,924 | ||||||
Ryder System, Inc. | 55,368 | 4,681,364 | ||||||
TransDigm Group, Inc. | 12,490 | 3,193,068 | ||||||
Union Pacific Corp. | 23,980 | 2,780,961 | ||||||
United Continental Holdings, Inc.* | 54,486 | 3,317,108 | ||||||
27,417,197 | ||||||||
Financials — 6.2% | ||||||||
Bank of America Corp. | 136,020 | 3,446,747 | ||||||
Intercontinental Exchange, Inc. | 51,310 | 3,524,997 | ||||||
MGIC Investment Corp.* | 234,407 | 2,937,120 | ||||||
S&P Global, Inc. | 21,610 | 3,377,859 | ||||||
Western Alliance Bancorp* | 67,440 | 3,579,715 | ||||||
16,866,438 | ||||||||
Materials — 4.5% | ||||||||
Berry Global Group, Inc.* | 45,035 | 2,551,233 | ||||||
DowDuPont, Inc. | 76,350 | 5,285,711 | ||||||
Summit Materials, Inc. - Class A* | 140,070 | 4,486,442 | ||||||
12,323,386 | ||||||||
Consumer Staples — 3.5% | ||||||||
Constellation Brands, Inc. - Class A | 22,610 | 4,509,565 | ||||||
Philip Morris International, Inc. | 46,350 | 5,145,314 | ||||||
9,654,879 | ||||||||
Energy — 2.1% | ||||||||
Andeavor | 27,650 | 2,852,098 | ||||||
EOG Resources, Inc. | 28,530 | 2,759,992 | ||||||
5,612,090 | ||||||||
Real Estate — 1.6% | ||||||||
Alexandria Real Estate Equities, Inc. REIT | 36,156 | 4,301,479 | ||||||
Telecommunication Services — 1.0% | ||||||||
Verizon Communications, Inc. | 54,050 | 2,674,934 | ||||||
Total Common Stocks | $ | 266,828,445 | ||||||
Short-Term Investment Funds — 1.0% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 2,267,903 | 2,267,903 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 378,527 | 378,527 | ||||||
Total Short-Term Investment Funds | $ | 2,646,430 | ||||||
Total Investment Securities —99.1% | ||||||||
(Cost $210,419,006) | $ | 269,474,875 | ||||||
Other Assets in Excess of Liabilities — 0.9% | 2,434,757 | |||||||
Net Assets — 100.0% | $ | 271,909,632 |
14 |
Touchstone Growth Opportunities Fund (Unaudited) (Continued)
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $354,551. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 266,828,445 | $ | — | $ | — | $ | 266,828,445 | ||||||||
Short-Term Investment Funds | 2,646,430 | — | — | 2,646,430 | ||||||||||||
Total | $ | 269,474,875 | $ | — | $ | — | $ | 269,474,875 |
See accompanying Notes to Financial Statements.
15 |
Touchstone International Growth Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% | ||||||||
Cayman Islands — 12.5% | ||||||||
Consumer Discretionary — 4.5% | ||||||||
Geely Automobile Holdings Ltd. ADR | 3,240 | $ | 185,328 | |||||
JD.com, Inc. ADR* | 7,276 | 277,943 | ||||||
Sands China Ltd. ADR | 4,577 | 240,292 | ||||||
Information Technology — 8.0% | ||||||||
Alibaba Group Holding Ltd. ADR* | 2,490 | 430,048 | ||||||
Baidu, Inc. ADR* | 1,023 | 253,387 | ||||||
Tencent Holdings Ltd. ADR | 7,844 | 344,469 | ||||||
Weibo Corp. ADR* | 2,375 | 234,982 | ||||||
Total Cayman Islands | 1,966,449 | |||||||
Germany — 11.3% | ||||||||
Consumer Discretionary — 1.5% | ||||||||
adidas AG ADR | 2,040 | 230,928 | ||||||
Consumer Staples — 1.5% | ||||||||
Henkel AG & Co. KGaA ADR | 1,978 | 241,098 | ||||||
Financials — 2.1% | ||||||||
Allianz SE ADR | 14,805 | 331,484 | ||||||
Industrials — 3.0% | ||||||||
HOCHTIEF AG ADR | 7,572 | 255,569 | ||||||
Siemens AG ADR | 3,164 | 223,853 | ||||||
Information Technology — 1.5% | ||||||||
SAP SE ADR | 2,147 | 235,419 | ||||||
Materials — 1.7% | ||||||||
BASF SE ADR | 2,486 | 264,759 | ||||||
Total Germany | 1,783,110 | |||||||
Japan — 8.8% | ||||||||
Consumer Discretionary — 2.5% | ||||||||
Sony Corp. ADR | 10,680 | 398,791 | ||||||
Health Care — 1.2% | ||||||||
Hoya Corp. ADR | 3,338 | 181,454 | ||||||
Industrials — 3.9% | ||||||||
FANUC Corp. ADR | 14,005 | 284,021 | ||||||
Kubota Corp. ADR | 3,560 | 323,960 | ||||||
Information Technology — 1.2% | ||||||||
Omron Corp. ADR | 3,754 | 191,867 | ||||||
Total Japan | 1,380,093 | |||||||
France — 8.5% | ||||||||
Consumer Discretionary — 1.9% | ||||||||
LVMH Moet Hennessy Louis Vuitton | ||||||||
SE ADR | 5,481 | 303,154 | ||||||
Consumer Staples — 3.1% | ||||||||
L'Oreal SA ADR | 5,651 | 240,281 | ||||||
Remy Cointreau SA ADR | 21,530 | 256,573 | ||||||
Financials — 1.4% | ||||||||
BNP Paribas SA ADR | 5,452 | 220,424 | ||||||
Information Technology — 2.1% | ||||||||
Dassault Systemes SE ADR | 3,221 | 324,806 | ||||||
Total France | 1,345,238 | |||||||
Canada — 7.9% | ||||||||
Energy — 3.5% | ||||||||
Canadian Natural Resources Ltd. | 8,824 | 295,516 | ||||||
Suncor Energy, Inc. | 7,332 | 256,840 | ||||||
Financials — 2.3% | ||||||||
Brookfield Asset Management, Inc. - | ||||||||
Class A | 8,702 | 359,393 | ||||||
Industrials — 2.1% | ||||||||
Canadian National Railway Co. | 3,956 | 327,755 | ||||||
Total Canada | 1,239,504 | |||||||
Netherlands — 6.8% | ||||||||
Consumer Staples — 1.6% | ||||||||
Unilever NV | 4,295 | 253,577 | ||||||
Financials — 1.9% | ||||||||
ING Groep NV ADR† | 16,476 | 303,488 | ||||||
Information Technology — 1.5% | ||||||||
InterXion Holding NV (Netherlands)* | 4,584 | 233,463 | ||||||
Materials — 1.8% | ||||||||
LyondellBasell Industries NV - Class A | 2,882 | 285,462 | ||||||
Total Netherlands | 1,075,990 | |||||||
Switzerland — 6.3% | ||||||||
Consumer Staples — 2.1% | ||||||||
Nestle SA ADR | 4,012 | 337,048 | ||||||
Financials — 1.2% | ||||||||
Credit Suisse Group AG ADR | 12,375 | 195,525 | ||||||
Health Care — 3.0% | ||||||||
Novartis AG ADR | 2,714 | 232,997 | ||||||
Roche Holding AG ADR | 7,290 | 233,280 | ||||||
Total Switzerland | 998,850 | |||||||
Singapore — 4.8% | ||||||||
Financials — 1.3% | ||||||||
United Overseas Bank Ltd. ADR | 5,764 | 200,587 | ||||||
Information Technology — 3.5% | ||||||||
Broadcom Ltd. | 2,273 | 551,293 | ||||||
Total Singapore | 751,880 |
16 |
Touchstone International Growth Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% (Continued) | ||||||||
United Kingdom — 4.6% | ||||||||
Consumer Discretionary — 1.5% | ||||||||
Carnival PLC ADR | 3,673 | $ | 236,835 | |||||
Financials — 3.1% | ||||||||
Prudential PLC ADR | 10,171 | 487,293 | ||||||
Total United Kingdom | 724,128 | |||||||
India — 3.9% | ||||||||
Financials — 3.9% | ||||||||
HDFC Bank Ltd. ADR | 4,351 | 419,306 | ||||||
ICICI Bank Ltd. ADR | 22,886 | 195,904 | ||||||
Total India | 615,210 | |||||||
Sweden — 3.8% | ||||||||
Financials — 1.9% | ||||||||
Swedbank AB ADR | 10,737 | 297,630 | ||||||
Industrials — 1.9% | ||||||||
Atlas Copco AB ADR - Class A | 6,974 | 296,325 | ||||||
Total Sweden | 593,955 | |||||||
Denmark — 3.1% | ||||||||
Financials — 1.6% | ||||||||
Danske Bank A/S ADR | 12,488 | 250,509 | ||||||
Health Care — 1.5% | ||||||||
Novo Nordisk A/S ADR | 5,029 | 242,146 | ||||||
Total Denmark | 492,655 | |||||||
South Africa — 2.3% | ||||||||
Consumer Staples — 1.2% | ||||||||
Shoprite Holdings Ltd. ADR† | 12,262 | 188,369 | ||||||
Financials — 1.1% | ||||||||
Capitec Bank Holdings Ltd. ADR | 5,255 | 167,169 | ||||||
Total South Africa | 355,538 | |||||||
Ireland — 1.9% | ||||||||
Industrials — 1.9% | ||||||||
Kingspan Group PLC ADR | 7,064 | 300,471 | ||||||
Spain — 1.9% | ||||||||
Consumer Discretionary — 1.9% | ||||||||
Industria DE Diseno Textil SA ADR | 15,585 | 294,401 | ||||||
Philippines — 1.8% | ||||||||
Financials — 1.8% | ||||||||
BDO Unibank, Inc. ADR | 8,646 | 276,240 | ||||||
Taiwan — 1.7% | ||||||||
Information Technology — 1.7% | ||||||||
Taiwan Semiconductor | ||||||||
Manufacturing Co. Ltd. ADR | 7,120 | 267,356 | ||||||
Brazil — 1.6% | ||||||||
Financials — 1.6% | ||||||||
Itau Unibanco Holding SA ADR | 17,857 | 244,641 | ||||||
Panama — 1.5% | ||||||||
Industrials — 1.5% | ||||||||
Copa Holdings SA - Class A | 1,865 | 232,248 | ||||||
Mexico — 1.3% | ||||||||
Industrials — 1.3% | ||||||||
Grupo Aeroportuario del Sureste SAB | ||||||||
de CV ADR | 1,089 | 207,803 | ||||||
Luxembourg — 1.0% | ||||||||
Consumer Discretionary — 1.0% | ||||||||
Samsonite International SA ADR | 7,629 | 164,634 | ||||||
Belgium — 0.7% | ||||||||
Health Care — 0.7% | ||||||||
Galapagos NV ADR*† | 1,017 | 103,480 | ||||||
Total Common Stocks | $ | 15,413,874 | ||||||
Short-Term Investment Funds — 4.7% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 329,257 | 329,257 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 410,793 | 410,793 | ||||||
Total Short-Term Investment Funds | $ | 740,050 | ||||||
Total Investment Securities —102.7% | ||||||||
(Cost $13,679,667) | $ | 16,153,924 | ||||||
Liabilities in Excess of Other Assets — (2.7%) | (429,580 | ) | ||||||
Net Assets — 100.0% | $ | 15,724,344 |
17 |
Touchstone International Growth Fund (Unaudited) (Continued)
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $403,206. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 15,413,874 | $ | — | $ | — | $ | 15,413,874 | ||||||||
Short-Term Investment Funds | 740,050 | — | — | 740,050 | ||||||||||||
Total | $ | 16,153,924 | $ | — | $ | — | $ | 16,153,924 |
See accompanying Notes to Financial Statements.
18 |
Touchstone International Value Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% | ||||||||
United Kingdom — 17.3% | ||||||||
Consumer Staples — 3.8% | ||||||||
Dairy Crest Group PLC | 45,147 | $ | 371,753 | |||||
Imperial Brands PLC | 12,949 | 552,673 | ||||||
Energy — 4.5% | ||||||||
BP PLC | 65,190 | 417,607 | ||||||
BP PLC ADR | 6,990 | 268,626 | ||||||
TechnipFMC PLC* | 14,660 | 405,401 | ||||||
Health Care — 2.3% | ||||||||
GlaxoSmitKline PLC | 27,490 | 549,541 | ||||||
Industrials — 1.1% | ||||||||
Babcock International Group PLC | 24,200 | 268,414 | ||||||
Materials — 4.6% | ||||||||
DS Smith PLC | 108,888 | 719,846 | ||||||
RPC Group PLC | 30,100 | 399,718 | ||||||
Utilities — 1.0% | ||||||||
National Grid PLC | 18,321 | 226,915 | ||||||
Total United Kingdom | 4,180,494 | |||||||
Netherlands — 14.1% | ||||||||
Consumer Discretionary — 2.3% | ||||||||
Fiat Chrysler Automobiles NV* | 31,700 | 568,105 | ||||||
Financials — 2.9% | ||||||||
Aegon NV | 67,600 | 394,040 | ||||||
ING Groep NV | 16,373 | 301,791 | ||||||
Health Care — 2.8% | ||||||||
Koninklijke Philips NV | 16,600 | 684,912 | ||||||
Industrials — 6.1% | ||||||||
Airbus Group SE | 8,740 | 832,001 | ||||||
CNH Industrial NV | 40,640 | 487,894 | ||||||
CNH Industrial NV | 11,930 | 143,279 | ||||||
Total Netherlands | 3,412,022 | |||||||
Germany — 12.9% | ||||||||
Consumer Discretionary — 1.1% | ||||||||
HUGO BOSS AG | 3,100 | 273,534 | ||||||
Financials — 3.0% | ||||||||
Deutsche Boerse AG | 1,976 | 214,534 | ||||||
Muenchener Rueckversicherungs- | ||||||||
Gesellschaft AG in Muenchen | 2,400 | 513,659 | ||||||
Health Care — 3.1% | ||||||||
Bayer AG | 5,530 | 755,412 | ||||||
Industrials — 1.3% | ||||||||
GEA Group AG | 6,700 | 305,006 | ||||||
Materials — 2.3% | ||||||||
Linde AG* | 2,600 | 542,217 | ||||||
Telecommunication Services — 2.1% | ||||||||
Deutsche Telekom AG | 27,300 | 509,806 | ||||||
Total Germany | 3,114,168 | |||||||
Japan — 12.7% | ||||||||
Health Care — 0.5% | ||||||||
Astellas Pharma, Inc. | 9,800 | 124,730 | ||||||
Industrials — 7.5% | ||||||||
Fuji Electric Co. Ltd. | 66,490 | 368,932 | ||||||
IHI Corp. | 13,816 | 481,607 | ||||||
Seibu Holdings, Inc. | 26,200 | 447,522 | ||||||
Sumitomo Corp. | 34,830 | 501,462 | ||||||
Information Technology — 3.6% | ||||||||
Hitachi Ltd. | 75,720 | 533,891 | ||||||
Trend Micro, Inc. | 6,990 | 344,370 | ||||||
Materials — 1.1% | ||||||||
Sumitomo Osaka Cement Co. Ltd.† | 60,010 | 265,405 | ||||||
Total Japan | 3,067,919 | |||||||
France — 8.1% | ||||||||
Health Care — 3.2% | ||||||||
Sanofi | 7,695 | 766,007 | ||||||
Industrials — 2.7% | ||||||||
Cie de Saint-Gobain | 11,160 | 664,909 | ||||||
Materials — 2.2% | ||||||||
Air Liquide SA | 4,040 | 538,754 | ||||||
Total France | 1,969,670 | |||||||
Italy — 4.6% | ||||||||
Energy — 2.0% | ||||||||
Eni SpA | 28,601 | 473,679 | ||||||
Financials — 0.5% | ||||||||
Mediobanca SpA | 11,800 | 126,807 | ||||||
Utilities — 2.1% | ||||||||
Enel SpA | 83,300 | 501,822 | ||||||
Total Italy | 1,102,308 | |||||||
South Korea — 4.0% | ||||||||
Consumer Discretionary — 1.3% | ||||||||
Hankook Tire Co. Ltd. | 5,920 | 311,749 | ||||||
Financials — 2.7% | ||||||||
Samsung Securities Co. Ltd. | 6,600 | 199,819 | ||||||
Shinhan Financial Group Co. Ltd. | 10,430 | 460,988 | ||||||
Total South Korea | 972,556 |
19 |
Touchstone International Value Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.0% (Continued) | ||||||||
Switzerland — 3.9% | ||||||||
Financials — 2.4% | ||||||||
Credit Suisse Group AG | 36,204 | $ | 573,638 | |||||
Health Care — 1.5% | ||||||||
Novartis AG | 4,219 | 361,885 | ||||||
Total Switzerland | 935,523 | |||||||
Singapore — 3.4% | ||||||||
Consumer Discretionary — 1.1% | ||||||||
Jardine Cycle & Carriage Ltd. | 9,470 | 275,578 | ||||||
Financials — 2.3% | ||||||||
United Overseas Bank Ltd. | 31,670 | 549,974 | ||||||
Total Singapore | 825,552 | |||||||
United States — 2.5% | ||||||||
Consumer Staples — 2.5% | ||||||||
Coca-Cola European Partners PLC | 14,500 | 603,490 | ||||||
Brazil — 2.2% | ||||||||
Industrials — 1.3% | ||||||||
Embraer SA ADR | 14,370 | 324,906 | ||||||
Information Technology — 0.9% | ||||||||
Cielo SA | 31,860 | 220,605 | ||||||
Total Brazil | 545,511 | |||||||
Austria — 2.0% | ||||||||
Financials — 2.0% | ||||||||
Erste Group Bank AG | 11,190 | 483,462 | ||||||
Ireland — 2.0% | ||||||||
Materials — 2.0% | ||||||||
CRH PLC | 12,730 | 483,439 | ||||||
Spain — 1.9% | ||||||||
Financials — 1.9% | ||||||||
Banco de Sabadell SA | 219,303 | 458,460 | ||||||
Malaysia — 1.7% | ||||||||
Financials — 1.7% | ||||||||
CIMB Group Holdings Bhd | 271,000 | 404,844 | ||||||
Australia — 1.6% | ||||||||
Financials — 1.6% | ||||||||
QBE Insurance Group Ltd. | 48,600 | 383,141 | ||||||
Taiwan — 1.0% | ||||||||
Information Technology — 1.0% | ||||||||
MediaTek, Inc. | 25,800 | 242,775 |
Hong Kong — 0.8% | ||||||||
Consumer Discretionary — 0.8% | ||||||||
SJM Holdings Ltd. | 207,800 | 190,896 | ||||||
Bermuda — 0.7% | ||||||||
Financials — 0.7% | ||||||||
XL Group Ltd. | 4,200 | 165,690 | ||||||
Colombia — 0.5% | ||||||||
Energy — 0.5% | ||||||||
Ecopetrol SA ADR† | 12,500 | 118,625 | ||||||
Czech Republic — 0.1% | ||||||||
Financials — 0.1% | ||||||||
Komercni Banka A/S | 400 | 17,468 | ||||||
Total Common Stocks | $ | 23,678,013 | ||||||
Short-Term Investment Funds — 2.4% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 184,561 | 184,561 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 392,719 | 392,719 | ||||||
Total Short-Term Investment Funds | $ | 577,280 | ||||||
Total Investment Securities —100.4% | ||||||||
(Cost $23,776,203) | $ | 24,255,293 | ||||||
Liabilities in Excess of Other Assets — (0.4%) | (96,838 | ) | ||||||
Net Assets — 100.0% | $ | 24,158,455 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $376,640. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
20 |
Touchstone International Value Fund (Unaudited) (Continued)
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
United Kingdom | $ | 640,379 | $ | 3,540,115 | $ | — | $ | 4,180,494 | ||||||||
Netherlands | 143,279 | 3,268,743 | — | 3,412,022 | ||||||||||||
Germany | 542,217 | 2,571,951 | — | 3,114,168 | ||||||||||||
Japan | — | 3,067,919 | — | 3,067,919 | ||||||||||||
France | — | 1,969,670 | — | 1,969,670 | ||||||||||||
Italy | — | 1,102,308 | — | 1,102,308 | ||||||||||||
South Korea | — | 972,556 | — | 972,556 | ||||||||||||
Switzerland | — | 935,523 | — | 935,523 | ||||||||||||
Singapore | — | 825,552 | — | 825,552 | ||||||||||||
United States | 603,490 | — | — | 603,490 | ||||||||||||
Brazil | 545,511 | — | — | 545,511 | ||||||||||||
Austria | — | 483,462 | — | 483,462 | ||||||||||||
Ireland | — | 483,439 | — | 483,439 | ||||||||||||
Spain | — | 458,460 | — | 458,460 | ||||||||||||
Malaysia | — | 404,844 | — | 404,844 | ||||||||||||
Australia | — | 383,141 | — | 383,141 | ||||||||||||
Taiwan | — | 242,775 | — | 242,775 | ||||||||||||
Hong Kong | — | 190,896 | — | 190,896 | ||||||||||||
Bermuda | 165,690 | — | — | 165,690 | ||||||||||||
Colombia | 118,625 | — | — | 118,625 | ||||||||||||
Czech Republic | 17,468 | — | — | 17,468 | ||||||||||||
Short-Term Investment Funds | 577,280 | — | — | 577,280 | ||||||||||||
Total | $ | 3,353,939 | $ | 20,901,354 | $ | — | $ | 24,255,293 |
At September 30, 2017, equity securities valued at $985,564 were transferred from Level 1 to Level 2. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model, provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities.
See accompanying Notes to Financial Statements.
21 |
Touchstone Mid Cap Growth Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.0% | ||||||||
Information Technology — 26.2% | ||||||||
Alliance Data Systems Corp. | 63,731 | $ | 14,119,603 | |||||
Autodesk, Inc.* | 119,675 | 13,434,715 | ||||||
Ciena Corp.* | 471,670 | 10,362,590 | ||||||
Cypress Semiconductor Corp. | 735,590 | 11,048,562 | ||||||
Fidelity National Information Services, Inc. | 176,740 | 16,505,749 | ||||||
FleetCor Technologies, Inc.* | 74,765 | 11,571,379 | ||||||
Lam Research Corp. | 72,275 | 13,373,766 | ||||||
Maxim Integrated Products, Inc. | 190,190 | 9,073,965 | ||||||
Microchip Technology, Inc. | 58,620 | 5,262,904 | ||||||
Micron Technology, Inc.* | 197,490 | 7,767,282 | ||||||
Nice Ltd. ADR | 151,423 | 12,312,204 | ||||||
Palo Alto Networks, Inc.* | 53,185 | 7,663,958 | ||||||
Red Hat, Inc.* | 141,140 | 15,646,780 | ||||||
ServiceNow, Inc.* | 109,210 | 12,835,451 | ||||||
Skyworks Solutions, Inc. | 64,320 | 6,554,208 | ||||||
Splunk Inc.* | 116,680 | 7,751,052 | ||||||
Vantiv, Inc. - Class A* | 194,750 | 13,724,032 | ||||||
189,008,200 | ||||||||
Industrials — 17.2% | ||||||||
AMETEK, Inc. | 238,970 | 15,781,579 | ||||||
Ferguson PLC ADR† | 2,223,940 | 14,722,483 | ||||||
IHS Markit Ltd.* | 218,984 | 9,652,815 | ||||||
JB Hunt Transport Services, Inc. | 142,646 | 15,845,118 | ||||||
Lennox International, Inc. | 79,141 | 14,163,865 | ||||||
Macquarie Infrastructure Corp. | 196,019 | 14,148,651 | ||||||
Teledyne Technologies, Inc.* | 61,700 | 9,821,406 | ||||||
TransDigm Group, Inc. | 40,006 | 10,227,534 | ||||||
TransUnion* | 213,451 | 10,087,694 | ||||||
United Continental Holdings, Inc.* | 164,930 | 10,040,938 | ||||||
124,492,083 | ||||||||
Health Care — 16.1% | ||||||||
BioMarin Pharmaceutical, Inc.* | 93,565 | 8,708,095 | ||||||
Bioverativ, Inc.* | 124,749 | 7,119,425 | ||||||
Clovis Oncology, Inc.* | 58,270 | 4,801,448 | ||||||
Cooper Cos., Inc. (The) | 65,419 | 15,511,499 | ||||||
DENTSPLY SIRONA, Inc. | 159,560 | 9,543,284 | ||||||
Envision Healthcare Corp.* | 208,930 | 9,391,403 | ||||||
Hill-Rom Holdings, Inc. | 184,958 | 13,686,892 | ||||||
ICON PLC (Ireland)* | 144,850 | 16,495,518 | ||||||
Jazz Pharmaceuticals PLC (Ireland)* | 89,959 | 13,156,504 | ||||||
Medicines Co. (The)*† | 143,430 | 5,312,647 | ||||||
Mettler-Toledo International, Inc.* | 20,060 | 12,560,770 | ||||||
116,287,485 | ||||||||
Consumer Discretionary — 14.5% | ||||||||
Delphi Automotive PLC (United | ||||||||
Kingdom) | 68,797 | 6,769,625 | ||||||
Dollar Tree, Inc.* | 125,500 | 10,895,910 | ||||||
Dunkin' Brands Group, Inc. | 152,320 | 8,085,146 | ||||||
Expedia, Inc. | 63,910 | 9,199,205 | ||||||
L Brands, Inc. | 155,380 | 6,465,362 | ||||||
Liberty Broadband Corp. - Class A* | 110,710 | 10,426,668 | ||||||
Marriott International, Inc. - Class A | 134,310 | 14,809,021 | ||||||
MGM Resorts International | 374,030 | 12,189,638 | ||||||
Newell Brands, Inc. | 202,782 | 8,652,708 | ||||||
PVH Corp. | 73,060 | 9,209,944 | ||||||
Six Flags Entertainment Corp. | 126,690 | 7,720,489 | ||||||
104,423,716 | ||||||||
Financials — 7.8% | ||||||||
Arthur J Gallagher & Co. | 206,770 | 12,726,694 | ||||||
MSCI, Inc. | 82,690 | 9,666,461 | ||||||
Progressive Corp. (The) | 243,720 | 11,800,922 | ||||||
Raymond James Financial, Inc. | 97,450 | 8,217,958 | ||||||
Western Alliance Bancorp* | 258,440 | 13,717,995 | ||||||
56,130,030 | ||||||||
Materials — 4.8% | ||||||||
Avery Dennison Corp. | 120,790 | 11,878,489 | ||||||
Celanese Corp. - Series A | 110,260 | 11,496,810 | ||||||
Vulcan Materials Co. | 94,350 | 11,284,260 | ||||||
34,659,559 | ||||||||
Real Estate — 4.0% | ||||||||
Alexandria Real Estate Equities, Inc. REIT | 58,570 | 6,968,073 | ||||||
American Campus Communities, Inc. | ||||||||
REIT | 248,910 | 10,989,376 | ||||||
CyrusOne, Inc. REIT | 192,100 | 11,320,453 | ||||||
29,277,902 | ||||||||
Consumer Staples — 3.3% | ||||||||
Constellation Brands, Inc. - Class A | 62,521 | 12,469,813 | ||||||
Pinnacle Foods, Inc. | 198,737 | 11,361,794 | ||||||
23,831,607 | ||||||||
Energy — 3.1% | ||||||||
Andeavor | 93,305 | 9,624,411 | ||||||
Pioneer Natural Resources Co. | 89,030 | 13,135,486 | ||||||
22,759,897 | ||||||||
Total Common Stocks | $ | 700,870,479 | ||||||
Short-Term Investment Funds — 3.6% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 23,496,908 | 23,496,908 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 2,424,150 | 2,424,150 | ||||||
Total Short-Term Investment Funds | $ | 25,921,058 | ||||||
Total Investment Securities —100.6% | ||||||||
(Cost $561,511,161) | $ | 726,791,537 | ||||||
Liabilities in Excess of Other Assets — (0.6%) | (4,610,428 | ) | ||||||
Net Assets — 100.0% | $ | 722,181,109 |
22 |
Touchstone Mid Cap Growth Fund (Unaudited) (Continued)
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $2,394,124. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 700,870,479 | $ | — | $ | — | $ | 700,870,479 | ||||||||
Short-Term Investment Funds | 25,921,058 | — | — | 25,921,058 | ||||||||||||
Total | $ | 726,791,537 | $ | — | $ | — | $ | 726,791,537 |
See accompanying Notes to Financial Statements.
23 |
Touchstone Sands Capital Emerging Markets Growth Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.2% | ||||||||
India — 30.0% | ||||||||
Consumer Discretionary — 7.0% | ||||||||
Jubilant Foodworks Ltd. | 513,300 | $ | 10,961,382 | |||||
Makemytrip Ltd.*† | 330,800 | 9,510,500 | ||||||
Zee Entertainment Enterprises Ltd. | 1,242,400 | 9,907,773 | ||||||
Consumer Staples — 3.3% | ||||||||
Avenue Supermarts Ltd., 144a* | 222,249 | 3,677,754 | ||||||
Britannia Industries Ltd. | 71,200 | 4,739,702 | ||||||
ITC Ltd. | 1,490,500 | 5,897,627 | ||||||
Financials — 8.7% | ||||||||
HDFC Bank Ltd. | 364,400 | 10,087,689 | ||||||
Housing Development Finance Corp. | ||||||||
Ltd. | 702,600 | 18,754,526 | ||||||
IndusInd Bank Ltd. | 347,835 | 8,969,603 | ||||||
Health Care — 2.3% | ||||||||
Apollo Hospitals Enterprise Ltd. | 389,400 | 6,000,330 | ||||||
Lupin Ltd. | 253,600 | 3,938,957 | ||||||
Industrials — 7.5% | ||||||||
Adani Ports & Special Economic Zone | ||||||||
Ltd. | 2,789,900 | 16,119,513 | ||||||
Eicher Motors Ltd. | 19,175 | 9,176,902 | ||||||
Larsen & Toubro Ltd. | 430,500 | 7,538,283 | ||||||
Materials — 1.2% | ||||||||
Asian Paints Ltd. | 307,700 | 5,339,403 | ||||||
Total India | 130,619,944 | |||||||
Cayman Islands — 19.6% | ||||||||
Consumer Discretionary — 4.6% | ||||||||
NagaCorp Ltd. | 8,186,000 | 4,978,244 | ||||||
Netshoes Cayman Ltd.* | 207,100 | 2,723,365 | ||||||
Sands China Ltd. | 2,389,800 | 12,498,893 | ||||||
Information Technology — 15.0% | ||||||||
Alibaba Group Holding Ltd. ADR* | 175,194 | 30,257,756 | ||||||
Baidu, Inc. ADR* | 93,980 | 23,277,906 | ||||||
Tencent Holdings Ltd. | 265,100 | 11,590,356 | ||||||
Total Cayman Islands | 85,326,520 | |||||||
China — 6.3% | ||||||||
Consumer Discretionary — 6.3% | ||||||||
ANTA Sports Products Ltd. | 2,758,000 | 11,598,174 | ||||||
Ctrip.com International Ltd. ADR* | 297,500 | 15,690,150 | ||||||
Total China | 27,288,324 | |||||||
South Africa — 5.9% | ||||||||
Consumer Discretionary — 5.9% | ||||||||
Naspers Ltd. - Class N | 119,200 | 25,767,778 | ||||||
Industrials — 0.0% | ||||||||
Novus Holdings Ltd. | 41,228 | 19,885 | ||||||
Total South Africa | 25,787,663 | |||||||
South Korea — 4.1% | ||||||||
Consumer Staples — 1.5% | ||||||||
Amorepacific Corp. | 29,800 | 6,764,747 | ||||||
Health Care — 2.6% | ||||||||
Medy-Tox, Inc. | 25,975 | 11,256,495 | ||||||
Total South Korea | 18,021,242 | |||||||
Netherlands — 4.0% | ||||||||
Information Technology — 4.0% | ||||||||
Yandex NV* | 525,300 | 17,308,635 | ||||||
United States — 3.7% | ||||||||
Information Technology — 3.7% | ||||||||
MercadoLibre, Inc. | 62,850 | 16,273,750 | ||||||
Philippines — 3.0% | ||||||||
Industrials — 1.4% | ||||||||
International Container Terminal | ||||||||
Services, Inc. | 2,974,720 | 6,103,242 | ||||||
Real Estate — 1.6% | ||||||||
SM Prime Holdings, Inc. | 10,559,800 | 7,161,195 | ||||||
Total Philippines | 13,264,437 | |||||||
Indonesia — 2.8% | ||||||||
Financials — 1.9% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 7,294,800 | 8,272,928 | ||||||
Health Care — 0.9% | ||||||||
Siloam International Hospitals Tbk | ||||||||
PT* | 5,108,555 | 3,792,824 | ||||||
Total Indonesia | 12,065,752 | |||||||
Brazil — 2.6% | ||||||||
Consumer Staples — 2.6% | ||||||||
Raia Drogasil SA | 482,900 | 11,430,786 | ||||||
Taiwan — 2.4% | ||||||||
Information Technology — 2.4% | ||||||||
Taiwan Semiconductor | ||||||||
Manufacturing Co. Ltd. ADR | 280,640 | 10,538,032 | ||||||
Thailand — 2.3% | ||||||||
Consumer Staples — 2.3% | ||||||||
CP ALL PCL | 4,984,700 | 9,976,873 | ||||||
Peru — 2.1% | ||||||||
Financials — 2.1% | ||||||||
Credicorp Ltd. | 44,964 | 9,218,519 |
24 |
Touchstone Sands Capital Emerging Markets Growth Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.2% (Continued) | ||||||||
Virgin Islands (British) — 2.0% | ||||||||
Information Technology — 2.0% | ||||||||
Mail.Ru Group Ltd. GDR* | 267,200 | $ | 8,806,912 | |||||
Russia — 1.8% | ||||||||
Consumer Staples — 1.8% | ||||||||
Magnit OJSC GDR | 186,700 | 7,643,909 | ||||||
United Kingdom — 1.7% | ||||||||
Health Care — 1.7% | ||||||||
Hikma Pharmaceuticals PLC† | 442,100 | 7,183,097 | ||||||
Malaysia — 1.0% | ||||||||
Health Care — 1.0% | ||||||||
IHH Healthcare Bhd | 3,254,700 | 4,432,096 | ||||||
Mexico — 0.9% | ||||||||
Industrials — 0.9% | ||||||||
Grupo Aeroportuario del Sureste SAB | ||||||||
de CV ADR | 20,120 | 3,839,298 | ||||||
Total Common Stocks | $ | 419,025,789 | ||||||
Short-Term Investment Funds — 5.7% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 14,629,914 | 14,629,914 | ||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 10,412,256 | 10,412,256 | ||||||
Total Short-Term Investment Funds | $ | 25,042,170 | ||||||
Total Investment Securities —101.9% | ||||||||
(Cost $357,279,173) | $ | 444,067,959 | ||||||
Liabilities in Excess of Other Assets — (1.9%) | (8,286,465 | ) | ||||||
Net Assets — 100.0% | $ | 435,781,494 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $10,234,799. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
PCL - Public Company Limited
PLC - Public Limited Company
25 |
Touchstone Sands Capital Emerging Markets Growth Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
India | $ | 9,510,500 | $ | 121,109,444 | $ | — | $ | 130,619,944 | ||||||||
Cayman Islands | 56,259,027 | 29,067,493 | — | 85,326,520 | ||||||||||||
China | 27,288,324 | — | — | 27,288,324 | ||||||||||||
South Africa | 19,885 | 25,767,778 | — | 25,787,663 | ||||||||||||
South Korea | — | 18,021,242 | — | 18,021,242 | ||||||||||||
Netherlands | 17,308,635 | — | — | 17,308,635 | ||||||||||||
United States | 16,273,750 | — | — | 16,273,750 | ||||||||||||
Philippines | 7,161,195 | 6,103,242 | — | 13,264,437 | ||||||||||||
Indonesia | 12,065,752 | — | — | 12,065,752 | ||||||||||||
Brazil | 11,430,786 | — | — | 11,430,786 | ||||||||||||
Taiwan | 10,538,032 | — | — | 10,538,032 | ||||||||||||
Thailand | 9,976,873 | — | — | 9,976,873 | ||||||||||||
Peru | 9,218,519 | — | — | 9,218,519 | ||||||||||||
Virgin Islands (British) | 8,806,912 | — | — | 8,806,912 | ||||||||||||
Russia | — | 7,643,909 | — | 7,643,909 | ||||||||||||
United Kingdom | — | 7,183,097 | — | 7,183,097 | ||||||||||||
Malaysia | 4,432,096 | — | — | 4,432,096 | ||||||||||||
Mexico | 3,839,298 | — | — | 3,839,298 | ||||||||||||
Short-Term Investment Funds | 25,042,170 | — | — | 25,042,170 | ||||||||||||
Total | $ | 229,171,754 | $ | 214,896,205 | $ | — | $ | 444,067,959 |
At September 30, 2017, equity securities valued at $6,764,747 and $37,009,171 were transferred from Level 1 to Level 2 and from Level 2 to Level 1, respectively. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model, provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when there is no longer movement of the designated U.S. market index or required confidence levels were not reached in the systematic model.
See accompanying Notes to Financial Statements.
26 |
Touchstone Small Cap Growth Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.5% | ||||||||
Information Technology — 28.4% | ||||||||
Advanced Energy Industries, Inc.* | 44,045 | $ | 3,557,074 | |||||
Alarm.com Holdings, Inc.* | 77,118 | 3,484,191 | ||||||
BroadSoft, Inc.* | 82,089 | 4,129,077 | ||||||
Cirrus Logic, Inc.* | 67,690 | 3,609,231 | ||||||
Entegris, Inc.* | 126,031 | 3,635,994 | ||||||
ePlus, Inc.* | 35,701 | 3,300,557 | ||||||
Euronet Worldwide, Inc.* | 96,948 | 9,189,701 | ||||||
ExlService Holdings, Inc.* | 67,006 | 3,907,790 | ||||||
Fair Isaac Corp. | 20,999 | 2,950,360 | ||||||
GrubHub, Inc.* | 81,587 | 4,296,371 | ||||||
Instructure, Inc.* | 47,926 | 1,588,747 | ||||||
MAXIMUS, Inc. | 72,558 | 4,679,991 | ||||||
MKS Instruments, Inc. | 53,273 | 5,031,635 | ||||||
Power Integrations, Inc. | 60,539 | 4,431,455 | ||||||
Qualys, Inc.* | 65,080 | 3,371,144 | ||||||
RealPage, Inc.* | 82,095 | 3,275,590 | ||||||
Science Applications International Corp. | 55,168 | 3,687,981 | ||||||
Semtech Corp.* | 124,632 | 4,679,932 | ||||||
Trade Desk, Inc. (The) - Class A* | 42,610 | 2,620,941 | ||||||
Travelport Worldwide Ltd. (Bermuda) | 236,773 | 3,717,336 | ||||||
Ubiquiti Networks, Inc.*† | 39,122 | 2,191,614 | ||||||
Varonis Systems, Inc.* | 40,113 | 1,680,735 | ||||||
Xperi Corp. | 64,069 | 1,620,946 | ||||||
Yelp, Inc.* | 52,219 | 2,261,083 | ||||||
86,899,476 | ||||||||
Health Care — 24.2% | ||||||||
Achaogen, Inc.*† | 95,874 | 1,529,190 | ||||||
AMN Healthcare Services, Inc.* | 74,363 | 3,398,389 | ||||||
BioTelemetry, Inc.* | 76,194 | 2,514,402 | ||||||
Cambrex Corp.* | 58,585 | 3,222,175 | ||||||
Charles River Laboratories International, Inc.* | 46,418 | 5,014,072 | ||||||
Chemed Corp. | 21,441 | 4,332,154 | ||||||
CryoPort, Inc.* | 80,813 | 796,008 | ||||||
Exact Sciences Corp.* | 38,241 | 1,801,916 | ||||||
FibroGen, Inc.* | 28,672 | 1,542,554 | ||||||
Globus Medical, Inc. - Class A* | 77,528 | 2,304,132 | ||||||
Heska Corp.* | 20,904 | 1,841,433 | ||||||
ICON PLC (Ireland)* | 63,554 | 7,237,530 | ||||||
ICU Medical, Inc.* | 21,381 | 3,973,659 | ||||||
Intersect ENT, Inc.* | 49,004 | 1,526,475 | ||||||
LeMaitre Vascular, Inc. | 68,271 | 2,554,701 | ||||||
Medidata Solutions, Inc.* | 77,457 | 6,046,293 | ||||||
Merit Medical Systems, Inc.* | 99,522 | 4,214,757 | ||||||
MiMedx Group, Inc.*† | 109,758 | 1,303,925 | ||||||
Momenta Pharmaceuticals, Inc.* | 173,836 | 3,215,966 | ||||||
Natus Medical, Inc.* | 97,384 | 3,651,900 | ||||||
Nektar Therapeutics* | 66,903 | 1,605,672 | ||||||
NuVasive, Inc.* | 30,224 | 1,676,223 | ||||||
OraSure Technologies, Inc.* | 102,029 | 2,295,652 | ||||||
Portola Pharmaceuticals, Inc.* | 27,239 | 1,471,723 | ||||||
Repligen Corp.* | 33,509 | 1,284,065 | ||||||
Sage Therapeutics, Inc.* | 16,962 | 1,056,733 | ||||||
Supernus Pharmaceuticals, Inc.* | 61,159 | 2,446,360 | ||||||
73,858,059 | ||||||||
Industrials — 14.3% | ||||||||
Argan, Inc. | 46,285 | 3,112,666 | ||||||
Beacon Roofing Supply, Inc.* | 59,709 | 3,060,086 | ||||||
Brink's Co. (The) | 46,830 | 3,945,427 | ||||||
Dycom Industries, Inc.* | 41,126 | 3,531,901 | ||||||
EMCOR Group, Inc. | 91,626 | 6,357,012 | ||||||
Hawaiian Holdings, Inc.* | 118,190 | 4,438,034 | ||||||
MasTec, Inc.* | 82,416 | 3,824,102 | ||||||
Raven Industries, Inc. | 42,519 | 1,377,616 | ||||||
Trex Co., Inc.* | 57,875 | 5,212,801 | ||||||
TriNet Group, Inc.* | 113,491 | 3,815,567 | ||||||
WageWorks, Inc.* | 59,140 | 3,589,798 | ||||||
Willdan Group, Inc.* | 44,402 | 1,441,289 | ||||||
43,706,299 | ||||||||
Consumer Discretionary — 12.8% | ||||||||
Boyd Gaming Corp. | 85,491 | 2,227,041 | ||||||
Cable One, Inc. | 6,897 | 4,980,462 | ||||||
Dorman Products, Inc.* | 52,710 | 3,775,090 | ||||||
Grand Canyon Education, Inc.* | 59,867 | 5,437,121 | ||||||
LCI Industries | 57,275 | 6,635,309 | ||||||
Lithia Motors, Inc. - Class A | 45,020 | 5,416,356 | ||||||
Marriott Vacations Worldwide Corp. | 24,281 | 3,023,713 | ||||||
Nutrisystem, Inc. | 28,162 | 1,574,256 | ||||||
TopBuild Corp.* | 90,439 | 5,893,910 | ||||||
38,963,258 | ||||||||
Financials — 7.4% | ||||||||
Artisan Partners Asset Management, Inc. | ||||||||
- Class A | 94,968 | 3,095,957 | ||||||
Evercore Partners, Inc. - Class A | 73,721 | 5,916,110 | ||||||
National Western Life Group, Inc. | ||||||||
- Class A | 4,736 | 1,652,864 | ||||||
Primerica, Inc. | 50,584 | 4,125,125 | ||||||
Trupanion, Inc.*† | 92,155 | 2,433,814 | ||||||
Western Alliance Bancorp* | 100,055 | 5,310,919 | ||||||
22,534,789 | ||||||||
Materials — 4.2% | ||||||||
KMG Chemicals, Inc. | 32,758 | 1,797,759 | ||||||
Louisiana-Pacific Corp.* | 166,707 | 4,514,426 | ||||||
PolyOne Corp. | 64,360 | 2,576,331 | ||||||
Trinseo SA (Luxembourg) | 60,939 | 4,089,007 | ||||||
12,977,523 | ||||||||
Real Estate — 3.8% | ||||||||
CareTrust REIT, Inc. | 241,163 | 4,591,744 | ||||||
CoreSite Realty Corp. | 38,728 | 4,333,663 | ||||||
HFF, Inc. - Class A | 68,011 | 2,690,515 | ||||||
11,615,922 | ||||||||
Energy — 2.4% | ||||||||
Matador Resources Co.* | 119,146 | 3,234,814 | ||||||
Superior Energy Services, Inc.* | 164,511 | 1,756,977 | ||||||
US Silica Holdings, Inc. | 77,314 | 2,402,146 | ||||||
7,393,937 | ||||||||
Total Common Stocks | $ | 297,949,263 |
27 |
Touchstone Small Cap Growth Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Short-Term Investment Funds — 5.3% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 8,505,398 | $ | 8,505,398 | |||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class, | ||||||||
0.93%**¥W | 7,561,187 | 7,561,187 | ||||||
Total Short-Term Investment Funds | $ | 16,066,585 | ||||||
Total Investment Securities —102.8% | ||||||||
(Cost $266,923,107) | $ | 314,015,848 | ||||||
Liabilities in Excess of Other Assets — (2.8%) | (8,563,309 | ) | ||||||
Net Assets — 100.0% | $ | 305,452,539 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2017 was $7,379,978. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 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 | ||||||||||||
Common Stocks | $ | 297,949,263 | $ | — | $ | — | $ | 297,949,263 | ||||||||
Short-Term Investment Funds | 16,066,585 | — | — | 16,066,585 | ||||||||||||
Total | $ | 314,015,848 | $ | — | $ | — | $ | 314,015,848 |
See accompanying Notes to Financial Statements.
28 |
Touchstone Sustainability and Impact Equity Fund – September 30, 2017 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.5% | ||||||||
United States — 44.8% | ||||||||
Consumer Discretionary — 4.3% | ||||||||
Amazon.com, Inc.* | 6,650 | $ | 6,392,977 | |||||
Foot Locker, Inc. | 69,820 | 2,459,060 | ||||||
Ford Motor Co. | 262,028 | 3,136,475 | ||||||
NIKE, Inc. - Class B | 65,209 | 3,381,087 | ||||||
Consumer Staples — 1.9% | ||||||||
CVS Health Corp. | 83,650 | 6,802,418 | ||||||
Energy — 2.5% | ||||||||
Apache Corp. | 610 | 27,938 | ||||||
ConocoPhillips | 146,546 | 7,334,627 | ||||||
Noble Energy, Inc. | 57,602 | 1,633,593 | ||||||
Financials — 6.6% | ||||||||
Fifth Third Bancorp | 188,163 | 5,264,801 | ||||||
JPMorgan Chase & Co. | 94,162 | 8,993,413 | ||||||
Reinsurance Group of America, Inc. | 35,322 | 4,928,479 | ||||||
Synchrony Financial | 139,921 | 4,344,547 | ||||||
Wells Fargo & Co. | 524 | 28,899 | ||||||
Health Care — 8.9% | ||||||||
Abbott Laboratories | 104,499 | 5,576,067 | ||||||
Alnylam Pharmaceuticals, Inc.* | 20,276 | 2,382,227 | ||||||
Becton Dickinson & Co. | 25,708 | 5,037,483 | ||||||
Biogen, Inc.* | 14,778 | 4,627,287 | ||||||
Cerner Corp.* | 77,936 | 5,558,396 | ||||||
Illumina, Inc.* | 20,498 | 4,083,202 | ||||||
Regeneron Pharmaceuticals, Inc.* | 6,494 | 2,903,597 | ||||||
Ultragenyx Pharmaceutical, Inc.* | 25,152 | 1,339,596 | ||||||
Industrials — 5.6% | ||||||||
Roper Technologies, Inc. | 17,818 | 4,336,901 | ||||||
Southwest Airlines Co. | 213,551 | 11,954,585 | ||||||
United Continental Holdings, Inc.* | 59,677 | 3,633,136 | ||||||
Information Technology — 12.7% | ||||||||
Alphabet, Inc. - Class A* | 11,361 | 11,062,433 | ||||||
Facebook, Inc. - Class A* | 60,857 | 10,398,636 | ||||||
Microsoft Corp. | 93,568 | 6,969,880 | ||||||
NCR Corp.* | 72,912 | 2,735,658 | ||||||
Oracle Corp. | 122,722 | 5,933,609 | ||||||
Visa, Inc. - Class A | 76,266 | 8,026,234 | ||||||
Utilities — 2.3% | ||||||||
American Water Works Co., Inc. | 100,812 | 8,156,699 | ||||||
Total United States | 159,443,940 | |||||||
Japan — 10.6% | ||||||||
Consumer Discretionary — 1.2% | ||||||||
Sony Corp. | 118,600 | 4,424,808 | ||||||
Financials — 1.3% | ||||||||
ORIX Corp. | 293,900 | 4,744,787 | ||||||
Industrials — 3.5% | ||||||||
Amada Holdings Co. Ltd. | 305,100 | 3,349,795 | ||||||
Kinden Corp. | 339,100 | 5,466,410 | ||||||
Mitsubishi Electric Corp. | 223,300 | 3,493,162 | ||||||
Information Technology — 1.5% | ||||||||
Kyocera Corp. | 87,900 | 5,455,589 | ||||||
Telecommunication Services — 2.3% | ||||||||
Nippon Telegraph & Telephone Corp. | 174,300 | 7,986,552 | ||||||
Utilities — 0.8% | ||||||||
Tokyo Gas Co. Ltd. | 117,400 | 2,874,956 | ||||||
Total Japan | 37,796,059 | |||||||
United Kingdom — 6.9% | ||||||||
Consumer Discretionary — 2.4% | ||||||||
Berkeley Group Holdings PLC | 54,735 | 2,726,226 | ||||||
Compass Group PLC | 283,384 | 6,012,705 | ||||||
Consumer Staples — 1.1% | ||||||||
Unilever PLC ADR | 65,231 | 3,780,789 | ||||||
Financials — 3.4% | ||||||||
Lloyds Banking Group PLC | 4,568,653 | 4,151,790 | ||||||
Prudential PLC | 332,797 | 7,963,989 | ||||||
Total United Kingdom | 24,635,499 | |||||||
Germany — 4.7% | ||||||||
Consumer Discretionary — 0.5% | ||||||||
Bayerische Motoren Werke AG | 17,419 | 1,767,917 | ||||||
Industrials — 0.9% | ||||||||
KION Group AG | 35,806 | 3,430,024 | ||||||
Materials — 1.8% | ||||||||
HeidelbergCement AG | 62,625 | 6,444,676 | ||||||
Real Estate — 1.5% | ||||||||
Vonovia SE, REIT | 123,914 | 5,277,188 | ||||||
Total Germany | 16,919,805 | |||||||
France — 4.4% | ||||||||
Financials — 2.2% | ||||||||
BNP Paribas SA | 97,505 | 7,866,246 | ||||||
Industrials — 2.2% | ||||||||
Cie de Saint-Gobain | 88,524 | 5,274,233 | ||||||
Schneider Electric SE | 28,191 | 2,454,887 | ||||||
Total France | 15,595,366 | |||||||
Cayman Islands — 3.9% | ||||||||
Consumer Discretionary — 0.5% | ||||||||
Shenzhou International Group | ||||||||
Holdings Ltd. | 235,000 | 1,841,108 |
29 |
Touchstone Sustainability and Impact Equity Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.5% (Continued) | ||||||||
Cayman Islands — (Continued) | ||||||||
Information Technology — 3.4% | ||||||||
Baidu, Inc. ADR* | 18,971 | $ | 4,698,927 | |||||
Tencent Holdings Ltd. | 167,200 | 7,310,100 | ||||||
Total Cayman Islands | 13,850,135 | |||||||
Netherlands — 3.3% | ||||||||
Financials — 3.3% | ||||||||
ABN AMRO Group NV, 144a | 129,547 | 3,879,162 | ||||||
ING Groep NV | 429,822 | 7,922,584 | ||||||
Total Netherlands | 11,801,746 | |||||||
Sweden — 3.1% | ||||||||
Financials — 1.9% | ||||||||
Swedbank AB - Class A | 239,453 | 6,630,818 | ||||||
Industrials — 1.2% | ||||||||
Atlas Copco AB - Class A | 104,335 | 4,426,135 | ||||||
Total Sweden | 11,056,953 | |||||||
South Korea — 2.6% | ||||||||
Information Technology — 1.0% | ||||||||
Samsung SDI Co. Ltd. | 20,407 | 3,550,602 | ||||||
Telecommunication Services — 1.6% | ||||||||
KT Corp. ADR | 400,008 | 5,548,111 | ||||||
Total South Korea | 9,098,713 | |||||||
Liberia — 2.4% | ||||||||
Consumer Discretionary — 2.4% | ||||||||
Royal Caribbean Cruises Ltd. | 73,011 | 8,654,724 | ||||||
Switzerland — 2.1% | ||||||||
Health Care — 2.1% | ||||||||
Novartis AG | 88,221 | 7,567,152 | ||||||
Mexico — 1.8% | ||||||||
Financials — 0.9% | ||||||||
Grupo Financiero Banorte SAB de CV | ||||||||
- Class O | 435,800 | 3,000,343 | ||||||
Materials — 0.9% | ||||||||
Cemex SAB de CV ADR* | 367,296 | 3,335,048 | ||||||
Total Mexico | 6,335,391 | |||||||
Ireland — 1.7% | ||||||||
Industrials — 1.7% | ||||||||
Pentair PLC | 87,414 | 5,940,655 | ||||||
Jersey — 1.4% | ||||||||
Health Care — 1.4% | ||||||||
Shire PLC ADR | 31,556 | 4,832,486 | ||||||
Italy — 0.9% | ||||||||
Consumer Discretionary — 0.9% | ||||||||
Luxottica Group SpA | 55,822 | 3,119,988 | ||||||
Indonesia — 0.7% | ||||||||
Financials — 0.7% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 2,102,800 | 2,384,755 | ||||||
India — 0.7% | ||||||||
Financials — 0.7% | ||||||||
ICICI Bank Ltd. ADR | 274,006 | 2,345,491 | ||||||
Belgium — 0.5% | ||||||||
Health Care — 0.5% | ||||||||
Galapagos NV* | 18,840 | 1,920,499 | ||||||
Total Common Stocks | $ | 343,299,357 | ||||||
Exchange Traded Funds — 1.9% | ||||||||
Vanguard FTSE All-World ex-US ETF | 66,540 | 3,507,323 | ||||||
Vanguard S&P 500 ETF | 14,548 | 3,357,096 | ||||||
Total Exchange Traded Funds | $ | 6,864,419 | ||||||
Short-Term Investment Fund — 1.5% | ||||||||
Dreyfus Government Cash | ||||||||
Management, Institutional Shares, | ||||||||
0.92%¥W | 5,513,973 | $ | 5,513,973 | |||||
Total Investment Securities —99.9% | ||||||||
(Cost $294,511,726) | $ | 355,677,749 | ||||||
Other Assets in Excess of Liabilities — 0.1% | 216,839 | |||||||
Net Assets — 100.0% | $ | 355,894,588 |
* | Non-income producing security. |
¥ | Open-End Fund. |
W | Represents the 7-day SEC yield as of September 30, 2017. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
ETF - Exchange Traded Fund
PLC - Public Limited Company
REIT - Real Estate Investment Trust
30 |
Touchstone Sustainability and Impact Equity Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
United States | $ | 159,443,940 | $ | — | $ | — | $ | 159,443,940 | ||||||||
Japan | — | 37,796,059 | — | 37,796,059 | ||||||||||||
United Kingdom | 6,507,015 | 18,128,484 | — | 24,635,499 | ||||||||||||
Germany | — | 16,919,805 | — | 16,919,805 | ||||||||||||
France | — | 15,595,366 | — | 15,595,366 | ||||||||||||
Cayman Islands | 6,540,035 | 7,310,100 | — | 13,850,135 | ||||||||||||
Netherlands | — | 11,801,746 | — | 11,801,746 | ||||||||||||
Sweden | — | 11,056,953 | — | 11,056,953 | ||||||||||||
South Korea | 5,548,111 | 3,550,602 | — | 9,098,713 | ||||||||||||
Liberia | 8,654,724 | — | — | 8,654,724 | ||||||||||||
Switzerland | — | 7,567,152 | — | 7,567,152 | ||||||||||||
Mexico | 6,335,391 | — | — | 6,335,391 | ||||||||||||
Ireland | 5,940,655 | — | — | 5,940,655 | ||||||||||||
Jersey | 4,832,486 | — | — | 4,832,486 | ||||||||||||
Italy | 3,119,988 | — | — | 3,119,988 | ||||||||||||
Indonesia | 2,384,755 | — | — | 2,384,755 | ||||||||||||
India | 2,345,491 | — | — | 2,345,491 | ||||||||||||
Belgium | — | 1,920,499 | — | 1,920,499 | ||||||||||||
Exchange Traded Funds | 6,864,419 | — | — | 6,864,419 | ||||||||||||
Short-Term Investment Fund | 5,513,973 | — | — | 5,513,973 | ||||||||||||
Total | $ | 224,030,983 | $ | 131,646,766 | $ | — | $ | 355,677,749 |
At September 30, 2017, equity securities valued at $8,230,969 were transferred from Level 2 to Level 1. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model, provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when there is no longer movement of the designated U.S. market index or required confidence levels were not reached in the systematic model.
See accompanying Notes to Financial Statements.
31 |
Statements of Assets and Liabilities
September 30, 2017 (Unaudited)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Flexible | Touchstone | Growth | International | |||||||||||||
Income | Focused | Opportunities | Growth | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 747,679,684 | $ | 979,479,366 | $ | 210,419,006 | $ | 13,679,667 | ||||||||
Investments, at market value (A) | $ | 766,488,951 | $ | 1,241,198,223 | $ | 269,474,875 | $ | 16,153,924 | ||||||||
Cash | 360,429 | 243 | — | — | ||||||||||||
Cash deposits held at prime broker* | 2,347,778 | — | — | — | ||||||||||||
Foreign Currency (B) | — | — | — | — | ||||||||||||
Dividends and interest receivable | 5,626,494 | 1,006,828 | 164,506 | 9,827 | ||||||||||||
Receivable for capital shares sold | 2,548,843 | 516,510 | 38,162 | — | ||||||||||||
Receivable for investments sold | 188 | — | 4,308,548 | — | ||||||||||||
Receivable for variation margin on futures contracts | 336,049 | — | — | — | ||||||||||||
Receivable for securities lending income | 5,959 | 1,319 | 822 | 512 | ||||||||||||
Tax reclaim receivable | 19,423 | 144,903 | 1,896 | 7,962 | ||||||||||||
Other assets | 44,914 | 32,357 | 28,819 | 7,079 | ||||||||||||
Total Assets | 777,779,028 | 1,242,900,383 | 274,017,628 | 16,179,304 | ||||||||||||
Liabilities | ||||||||||||||||
Foreign currency (B) | — | — | — | — | ||||||||||||
Payable for return of collateral for securities on loan | 14,000,780 | 21,940,191 | 378,527 | 410,793 | ||||||||||||
Deferred foreign capital gains tax (C) | — | — | — | — | ||||||||||||
Payable for capital shares redeemed | 625,135 | 570,462 | 233,077 | 4,101 | ||||||||||||
Payable for investments purchased | 4,173,233 | 96,948 | 1,222,955 | — | ||||||||||||
Payable for variation margin on futures contracts | 162,023 | — | — | — | ||||||||||||
Payable to Investment Advisor | 404,998 | 620,003 | 154,007 | 4,693 | ||||||||||||
Payable to other affiliates | 78,939 | 224,187 | 33,088 | 363 | ||||||||||||
Payable to Trustees | 3,950 | 3,955 | 3,948 | 3,948 | ||||||||||||
Payable for professional services | 54,203 | 35,426 | 18,918 | 20,377 | ||||||||||||
Payable for reports to shareholders | 9,214 | 39,727 | 9,349 | 7,089 | ||||||||||||
Payable to Transfer Agent | 166,634 | 480,680 | 50,210 | 55 | ||||||||||||
Other accrued expenses and liabilities | 13,354 | 4,466 | 3,917 | 3,541 | ||||||||||||
Total Liabilities | 19,692,463 | 24,016,045 | 2,107,996 | 454,960 | ||||||||||||
Net Assets | $ | 758,086,565 | $ | 1,218,884,338 | $ | 271,909,632 | $ | 15,724,344 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 746,391,744 | $ | 796,214,475 | $ | 200,688,594 | $ | 13,205,429 | ||||||||
Accumulated net investment income (loss) | 1,252,555 | 10,708,499 | 154,834 | 121,006 | ||||||||||||
Accumulated net realized gains (losses) on investments, futures contracts, written options, forward foreign currency contracts and foreign currency transactions | (8,536,941 | ) | 150,242,507 | 12,010,335 | (76,348 | ) | ||||||||||
Net unrealized appreciation on investments, futures contracts, written options, forward foreign currency contracts and foreign currency transactions | 18,979,207 | 261,718,857 | 59,055,869 | 2,474,257 | ||||||||||||
Net Assets | $ | 758,086,565 | $ | 1,218,884,338 | $ | 271,909,632 | $ | 15,724,344 | ||||||||
(A) Includes market value of securities on loan of: | $ | 13,643,067 | $ | 21,335,219 | $ | 354,551 | $ | 403,206 | ||||||||
(B) Cost of foreign currency: | $ | — | $ | — | $ | — | $ | — | ||||||||
(C) See Note 2 in Notes to Financial Statements. |
* Represents segregated cash for futures contracts.
See accompanying Notes to Financial Statements.
32 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | ||||||||||||||||||
Touchstone | Touchstone | Sands Capital | Touchstone | |||||||||||||||
International | Mid Cap | Emerging | Touchstone | Sustainability | ||||||||||||||
Value | Growth | Markets | Small Cap | and Impact | ||||||||||||||
Fund | Fund | Growth Fund | Growth Fund | Equity Fund | ||||||||||||||
$ | 23,776,203 | $ | 561,511,161 | $ | 357,279,173 | $ | 266,923,107 | $ | 294,511,726 | |||||||||
$ | 24,255,293 | $ | 726,791,537 | $ | 444,067,959 | $ | 314,015,848 | $ | 355,677,749 | |||||||||
— | — | — | — | 24 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | 51,874 | — | — | ||||||||||||||
62,385 | 380,953 | 136,446 | 101,951 | 508,848 | ||||||||||||||
47 | 2,056,458 | 1,406,589 | 615,455 | 1,100,950 | ||||||||||||||
214,860 | — | 2,258,827 | — | 275,579 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
188 | 595 | 4,049 | 12,609 | 11 | ||||||||||||||
79,284 | — | 1,216 | 379 | 119,390 | ||||||||||||||
17,311 | 32,666 | 115,339 | 69,460 | 37,362 | ||||||||||||||
24,629,368 | 729,262,209 | 448,042,299 | 314,815,702 | 357,719,913 | ||||||||||||||
— | — | — | — | 18 | ||||||||||||||
392,719 | 2,424,150 | 10,412,256 | 7,561,187 | — | ||||||||||||||
— | — | 1,205,646 | — | — | ||||||||||||||
14,376 | 2,004,727 | 91,042 | 1,362,694 | 332,777 | ||||||||||||||
7,881 | 1,742,028 | — | — | 1,042,332 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
3,081 | 432,131 | 406,650 | 238,757 | 203,204 | ||||||||||||||
363 | 208,504 | 52,648 | 8,153 | 82,775 | ||||||||||||||
3,946 | 3,950 | 3,947 | 3,949 | 3,948 | ||||||||||||||
20,784 | 26,200 | 36,305 | 20,285 | 44,162 | ||||||||||||||
6,672 | 31,855 | 2,485 | 56,590 | 13,598 | ||||||||||||||
7,415 | 204,079 | 41,758 | 109,628 | 94,636 | ||||||||||||||
13,676 | 3,476 | 8,068 | 1,920 | 7,875 | ||||||||||||||
470,913 | 7,081,100 | 12,260,805 | 9,363,163 | 1,825,325 | ||||||||||||||
$ | 24,158,455 | $ | 722,181,109 | $ | 435,781,494 | $ | 305,452,539 | $ | 355,894,588 | |||||||||
$ | 104,276,662 | $ | 486,130,270 | $ | 360,588,113 | $ | 276,808,348 | $ | 301,180,868 | |||||||||
110,028 | (626,431 | ) | (567,436 | ) | (1,549,786 | ) | 2,310,811 | |||||||||||
(80,706,929 | ) | 71,396,894 | (9,826,374 | ) | (16,898,764 | ) | (8,771,446 | ) | ||||||||||
478,694 | 165,280,376 | 85,587,191 | 47,092,741 | 61,174,355 | ||||||||||||||
$ | 24,158,455 | $ | 722,181,109 | $ | 435,781,494 | $ | 305,452,539 | $ | 355,894,588 | |||||||||
$ | 376,640 | $ | 2,394,124 | $ | 10,234,799 | $ | 7,379,978 | $ | — | |||||||||
$ | — | $ | — | $ | 51,879 | $ | — | $ | (18 | ) |
33 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Flexible | Touchstone | Growth | International | |||||||||||||
Income | Focused | Opportunities | Growth | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 51,313,513 | $ | 178,051,875 | $ | 39,291,096 | $ | 79,497 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 4,685,112 | 4,086,189 | 1,173,225 | 6,402 | ||||||||||||
Net asset value price per share* | $ | 10.95 | $ | 43.57 | $ | 33.49 | $ | 12.42 | ||||||||
Maximum sales charge - Class A shares | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares | $ | 11.62 | $ | 46.23 | $ | 35.53 | $ | 13.18 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 52,161,306 | $ | 45,699,652 | $ | 8,644,081 | $ | 35,463 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 4,827,353 | 1,094,082 | 305,545 | 2,881 | ||||||||||||
Net asset value and offering price per share** | $ | 10.81 | $ | 41.77 | $ | 28.29 | $ | 12.31 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 555,946,213 | $ | 971,622,999 | $ | 49,750,372 | $ | 4,296 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 50,605,890 | 21,879,879 | 1,451,256 | 346 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.99 | $ | 44.41 | $ | 34.28 | $ | 12.42 | ||||||||
Pricing of Institutional Class Shares | ||||||||||||||||
Net assets applicable to Institutional Class Shares | $ | 98,665,533 | $ | 23,509,812 | $ | 174,224,083 | $ | 15,605,088 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 8,983,769 | 526,998 | 5,032,122 | 1,255,209 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.98 | $ | 44.61 | $ | 34.62 | $ | 12.43 |
* 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.
34 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | ||||||||||||||||||
Touchstone | Touchstone | Sands Capital | Touchstone | |||||||||||||||
International | Mid Cap | Emerging | Touchstone | Sustainability | ||||||||||||||
Value | Growth | Markets | Small Cap | and Impact | ||||||||||||||
Fund | Fund | Growth Fund | Growth Fund | Equity Fund | ||||||||||||||
$ | 3,652,630 | $ | 227,455,979 | $ | — | $ | 22,170,502 | $ | 128,755,753 | |||||||||
460,827 | 8,004,157 | — | 3,984,944 | 5,357,922 | ||||||||||||||
$ | 7.93 | $ | 28.42 | $ | — | $ | 5.56 | $ | 24.03 | |||||||||
5.75 | % | 5.75 | % | — | 5.75 | % | 5.75 | % | ||||||||||
$ | 8.41 | $ | 30.15 | $ | — | $ | 5.90 | $ | 25.50 | |||||||||
$ | 242,427 | $ | 93,577,249 | $ | — | $ | 9,265,388 | $ | 41,158,484 | |||||||||
33,066 | 4,802,294 | — | 2,029,637 | 1,986,611 | ||||||||||||||
$ | 7.33 | $ | 19.49 | $ | — | $ | 4.57 | $ | 20.72 | |||||||||
$ | 3,466,947 | $ | 350,107,416 | $ | 152,286,387 | $ | 256,410,734 | $ | 146,972,466 | |||||||||
436,832 | 11,939,479 | 12,195,504 | 41,236,847 | 5,944,794 | ||||||||||||||
$ | 7.94 | $ | 29.32 | $ | 12.49 | $ | 6.22 | $ | 24.72 | |||||||||
$ | 16,796,451 | $ | 51,040,465 | $ | 283,495,107 | $ | 17,605,915 | $ | 39,007,885 | |||||||||
2,133,349 | 1,727,462 | 22,638,804 | 2,806,091 | 1,575,824 | ||||||||||||||
$ | 7.87 | $ | 29.55 | $ | 12.52 | $ | 6.27 | $ | 24.75 |
35 |
For the Six Months Ended September 30, 2017 (Unaudited)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Flexible | Touchstone | Growth | International | |||||||||||||
Income | Focused | Opportunities | Growth | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends(A) | $ | 2,239,645 | $ | 9,687,660 | $ | 1,454,197 | $ | 146,431 | ||||||||
Interest | 10,937,069 | — | — | — | ||||||||||||
Income from securities loaned | 28,053 | 5,946 | 3,869 | 4,450 | ||||||||||||
Total Investment Income | 13,204,767 | 9,693,606 | 1,458,066 | 150,881 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 2,407,605 | 3,886,904 | 978,651 | 61,596 | ||||||||||||
Administration fees | 521,256 | 902,986 | 189,206 | 9,924 | ||||||||||||
Compliance fees and expenses | 1,126 | 1,126 | 1,126 | 1,126 | ||||||||||||
Custody fees | 24,346 | 11,190 | 5,913 | 2,575 | ||||||||||||
Professional fees | 32,527 | 32,014 | 15,164 | 16,876 | ||||||||||||
Transfer Agent fees, Class A | 27,099 | 184,961 | 26,867 | 33 | ||||||||||||
Transfer Agent fees, Class C | 23,382 | 22,344 | 5,875 | 9 | ||||||||||||
Transfer Agent fees, Class Y | 273,399 | 446,375 | 25,329 | 11 | ||||||||||||
Transfer Agent fees, Institutional Class | 14,015 | 3,115 | 44,385 | 22 | ||||||||||||
Transfer Agent out-of-pocket expenses | 14,763 | 239,438 | 12,538 | 35 | ||||||||||||
Registration fees, Class A | 12,114 | 12,544 | 8,408 | 1,513 | ||||||||||||
Registration fees, Class C | 9,062 | 8,883 | 7,309 | 1,212 | ||||||||||||
Registration fees, Class Y | 24,174 | 14,339 | 8,314 | 1,212 | ||||||||||||
Registration fees, Institutional Class | 11,490 | 8,403 | 9,822 | 1,513 | ||||||||||||
Interest expense on securities sold short | 148 | — | — | — | ||||||||||||
Reports to Shareholders, Class A | 5,106 | 17,981 | 4,210 | 2,645 | ||||||||||||
Reports to Shareholders, Class C | 4,423 | 4,483 | 3,122 | 2,645 | ||||||||||||
Reports to Shareholders, Class Y | 12,480 | 29,630 | 3,097 | 2,645 | ||||||||||||
Reports to Shareholders, Institutional Class | 3,206 | 2,875 | 4,298 | 2,678 | ||||||||||||
Distribution expenses, Class A | 66,202 | 248,016 | 49,970 | 62 | ||||||||||||
Distribution and shareholder servicing expenses, Class C | 269,986 | 247,818 | 43,193 | 24 | ||||||||||||
Trustee fees | 7,840 | 7,845 | 7,837 | 7,838 | ||||||||||||
Other expenses | 24,422 | 22,265 | 7,714 | 4,078 | ||||||||||||
Total Expenses | 3,790,171 | 6,355,535 | 1,462,348 | 120,272 | ||||||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (485,490 | ) | (101,802 | ) | (159,116 | ) | (53,771 | ) | ||||||||
Net Expenses | 3,304,681 | 6,253,733 | 1,303,232 | 66,501 | ||||||||||||
Net Investment Income (Loss) | 9,900,086 | 3,439,873 | 154,834 | 84,380 | ||||||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||||||
Net realized gains (losses) on investments (C) | 5,972,117 | 104,684,293 | 12,636,399 | 168,771 | ||||||||||||
Net realized losses on futures contracts | (834,842 | ) | — | — | — | |||||||||||
Net realized gains on written options | 335,496 | — | — | — | ||||||||||||
Net realized losses on forward foreign currency contracts | (191,033 | ) | — | — | — | |||||||||||
Net realized gains (losses) on foreign currency transactions | (551,536 | ) | — | — | (9 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on investments (D) | 10,022,447 | (46,659,165 | ) | 14,433,877 | 1,632,670 | |||||||||||
Net change in unrealized appreciation (depreciation) on futures contracts | 70,040 | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on written options | (99,307 | ) | — | — | — | |||||||||||
Net change in unrealized appreciation (depreciation) on forward foreign currency contracts | 93,426 | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | 250 | — | — | — | ||||||||||||
Net Realized and Unrealized Gains (Losses) on Investments | 14,817,058 | 58,025,128 | 27,070,276 | 1,801,432 | ||||||||||||
Change in Net Assets Resulting from Operations | $ | 24,717,144 | $ | 61,465,001 | $ | 27,225,110 | $ | 1,885,812 | ||||||||
(A) Net of foreign tax withholding of: | $ | — | $ | 115,466 | $ | 4,043 | $ | 22,905 | ||||||||
(B) See Note 4 in Notes to Financial Statements. | ||||||||||||||||
(C) On April 07, 2017, the Focused Fund had a redemption-in-kind of securities in the amount of $196,424,472. Net realized gains (losses) on investments includes the realized gain on the transaction of $54,207,989 which will not be realized by the Fund for tax purposes. | ||||||||||||||||
(D) Includes change in deferred foreign capital gains tax of: | $ | — | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
36 |
Statements of Operations (Unaudited) (Continued)
Touchstone | ||||||||||||||||||
Touchstone | Touchstone | Sands Capital | Touchstone | |||||||||||||||
International | Mid Cap | Emerging | Touchstone | Sustainability | ||||||||||||||
Value | Growth | Markets | Small Cap | and Impact | ||||||||||||||
Fund | Fund | Growth Fund | Growth Fund | Equity Fund | ||||||||||||||
$ | 440,565 | $ | 4,756,916 | $ | 2,331,516 | $ | 1,065,204 | $ | 3,599,710 | |||||||||
— | — | — | — | — | ||||||||||||||
3,302 | 1,527 | 11,216 | 70,326 | 27,299 | ||||||||||||||
443,867 | 4,758,443 | 2,342,732 | 1,135,530 | 3,627,009 | ||||||||||||||
112,861 | 2,628,226 | 2,098,170 | 1,788,178 | 1,207,999 | ||||||||||||||
16,365 | 518,454 | 264,552 | 261,485 | 239,843 | ||||||||||||||
1,126 | 1,126 | 1,126 | 1,126 | 1,126 | ||||||||||||||
14,691 | 8,403 | 80,796 | 7,481 | 13,849 | ||||||||||||||
18,437 | 22,936 | 31,730 | 17,160 | 26,793 | ||||||||||||||
5,269 | 150,620 | — | 25,351 | 80,867 | ||||||||||||||
215 | 70,394 | — | 10,721 | 28,929 | ||||||||||||||
2,973 | 181,609 | 55,584 | 199,586 | 56,881 | ||||||||||||||
26 | 8,078 | 30,743 | 1,576 | 8,990 | ||||||||||||||
3,232 | 26,005 | 13,856 | 7,103 | 27,042 | ||||||||||||||
5,248 | 9,058 | — | 9,274 | 9,686 | ||||||||||||||
4,683 | 8,671 | — | 9,038 | 8,445 | ||||||||||||||
5,338 | 13,204 | 14,224 | 46,055 | 11,200 | ||||||||||||||
3,415 | 11,504 | 9,262 | 8,093 | 8,344 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
3,119 | 10,805 | — | 4,945 | 9,276 | ||||||||||||||
2,695 | 8,934 | — | 3,807 | 5,216 | ||||||||||||||
2,722 | 25,558 | 5,627 | 50,020 | 6,524 | ||||||||||||||
2,673 | 3,027 | 6,286 | 2,857 | 2,724 | ||||||||||||||
4,499 | 289,647 | — | 37,965 | 153,683 | ||||||||||||||
1,172 | 501,020 | — | 53,567 | 220,014 | ||||||||||||||
7,836 | 7,840 | 7,838 | 7,839 | 7,838 | ||||||||||||||
12,780 | 15,007 | 11,178 | 11,122 | 13,277 | ||||||||||||||
231,375 | 4,520,126 | 2,630,972 | 2,564,349 | 2,148,546 | ||||||||||||||
(110,317 | ) | (2,019 | ) | (30,914 | ) | (341,530 | ) | (154,296 | ) | |||||||||
121,058 | 4,518,107 | 2,600,058 | 2,222,819 | 1,994,250 | ||||||||||||||
322,809 | 240,336 | (257,326 | ) | (1,087,289 | ) | 1,632,759 | ||||||||||||
(6,305 | ) | 32,342,523 | 6,609,582 | 9,027,098 | 3,185,171 | |||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
3,991 | — | (57,648 | ) | — | 11,194 | |||||||||||||
2,185,413 | 33,051,482 | 46,612,211 | 12,369,726 | 31,214,640 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | — | — | — | — | ||||||||||||||
2,315 | — | (17,314 | ) | — | 9,135 | |||||||||||||
2,185,414 | 65,394,005 | 53,146,831 | 21,396,824 | 34,420,140 | ||||||||||||||
$ | 2,508,223 | $ | 65,634,341 | $ | 52,889,505 | $ | 20,309,535 | $ | 36,052,899 | |||||||||
$ | 39,038 | $ | 17,492 | $ | 160,444 | $ | — | $ | 232,284 | |||||||||
$ | — | $ | — | $ | (1,205,646 | ) | $ | — | $ | — |
37 |
Statements of Changes in Net Assets
Touchstone | ||||||||
Flexible Income | ||||||||
Fund | ||||||||
For the | ||||||||
Six Months | ||||||||
Ended | ||||||||
September 30, | For the | |||||||
2017 | Year Ended | |||||||
(Unaudited) | March 31, 2017 | |||||||
From Operations | ||||||||
Net investment income (loss) | $ | 9,900,086 | $ | 19,283,397 | ||||
Net realized gains (losses) on investments, futures contracts, written options, swap agreements, securities shold short, forward foreign currency contracts and foreign currency transactions | 4,730,202 | (2,060,369 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments, futures contracts, written options, forward foreign currency contracts and foreign currency transactions | 10,086,856 | 7,106,360 | ||||||
Change in Net Assets from Operations | 24,717,144 | 24,329,388 | ||||||
Distributions to Shareholders from: | ||||||||
Net investment income, Class A | (656,767 | ) | (1,561,926 | ) | ||||
Net investment income, Class C | (471,866 | ) | (1,072,545 | ) | ||||
Net investment income, Class Y | (7,014,219 | ) | (13,277,757 | ) | ||||
Net investment income, Institutional Class | (1,428,746 | ) | (2,785,703 | ) | ||||
Net realized gains, Class A | — | — | ||||||
Net realized gains, Class C | — | — | ||||||
Net realized gains, Class Y | — | — | ||||||
Net realized gains, Institutional Class | — | — | ||||||
Total Distributions | (9,571,598 | ) | (18,697,931 | ) | ||||
Net Increase (Decrease) from Share Transactions (A) | 69,720,698 | 124,129,348 | ||||||
Total Increase (Decrease) in Net Assets | 84,866,244 | 129,760,805 | ||||||
Net Assets | ||||||||
Beginning of period | 673,220,321 | 543,459,516 | ||||||
End of period | $ | 758,086,565 | $ | 673,220,321 | ||||
Accumulated Net Investment Income | $ | 1,252,555 | $ | 924,067 |
(A) For details on share transaction by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 42 to 44.
(B) Represents the period from commencement of operations (April 1, 2016) through March 31, 2017.
See accompanying Notes to Financial Statements.
38 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||||||||||
Touchstone | Growth Opportunities | International Growth | International | |||||||||||||||||||||||||||
Focused Fund | Fund | Fund | Value Fund | |||||||||||||||||||||||||||
For the | For the | For the | For the | |||||||||||||||||||||||||||
Six Months | Six Months | Six Months | Six Months | |||||||||||||||||||||||||||
Ended | Ended | Ended | For the | Ended | ||||||||||||||||||||||||||
September 30, | For the | September 30, | For the | September 30, | Year Ended | September 30, | For the | |||||||||||||||||||||||
2017 | Year Ended | 2017 | Year Ended | 2017 | March 31, | 2017 | Year Ended | |||||||||||||||||||||||
(Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 | (Unaudited) | 2017(B) | (Unaudited) | March 31, 2017 | |||||||||||||||||||||||
$ | 3,439,873 | $ | 8,041,618 | $ | 154,834 | $ | 639,004 | $ | 84,380 | $ | 90,634 | $ | 322,809 | $ | 682,656 | |||||||||||||||
104,684,293 | 50,402,184 | 12,636,399 | 14,884,304 | 168,762 | (245,110 | ) | (2,314 | ) | (4,061,696 | ) | ||||||||||||||||||||
(46,659,165 | ) | 138,441,540 | 14,433,877 | 18,567,633 | 1,632,670 | 841,587 | 2,187,728 | 5,694,712 | ||||||||||||||||||||||
61,465,001 | 196,885,342 | 27,225,110 | 34,090,941 | 1,885,812 | 687,111 | 2,508,223 | 2,315,672 | |||||||||||||||||||||||
— | (1,516,379 | ) | — | — | — | (6 | ) | (53,874 | ) | (414,991 | ) | |||||||||||||||||||
— | (153,587 | ) | — | — | — | — | (2,979 | ) | (13,916 | ) | ||||||||||||||||||||
— | (5,279,020 | ) | — | (48,495 | ) | — | (12 | ) | (54,304 | ) | (457,565 | ) | ||||||||||||||||||
— | (274,970 | ) | — | (272,809 | ) | — | (53,990 | ) | (264,090 | ) | (1,942,357 | ) | ||||||||||||||||||
— | (3,669,437 | ) | — | (1,283,090 | ) | — | — | — | — | |||||||||||||||||||||
— | (489,201 | ) | — | (371,428 | ) | — | — | — | — | |||||||||||||||||||||
— | (7,917,486 | ) | — | (1,725,793 | ) | — | — | — | — | |||||||||||||||||||||
— | (369,490 | ) | — | (4,752,178 | ) | — | — | — | — | |||||||||||||||||||||
— | (19,669,570 | ) | — | (8,453,793 | ) | — | (54,008 | ) | (375,247 | ) | (2,828,829 | ) | ||||||||||||||||||
(337,770,482 | ) | (34,526,581 | ) | 98,168 | (90,925,031 | ) | 1,919,008 | 11,286,421 | (42,101 | ) | (20,565,880 | ) | ||||||||||||||||||
(276,305,481 | ) | 142,689,191 | 27,323,278 | (65,287,883 | ) | 3,804,820 | 11,919,524 | 2,090,875 | (21,079,037 | ) | ||||||||||||||||||||
1,495,189,819 | 1,352,500,628 | 244,586,354 | 309,874,237 | 11,919,524 | — | 22,067,580 | 43,146,617 | |||||||||||||||||||||||
$ | 1,218,884,338 | $ | 1,495,189,819 | $ | 271,909,632 | $ | 244,586,354 | 15,724,344 | $ | 11,919,524 | $ | 24,158,455 | $ | 22,067,580 | ||||||||||||||||
$ | 10,708,499 | $ | 7,268,626 | $ | 154,834 | $ | — | $ | 121,006 | $ | 36,626 | $ | 110,028 | $ | 162,466 |
39 |
Statements of Changes in Net Assets (Continued)
Touchstone | ||||||||
Mid Cap | ||||||||
Growth Fund | ||||||||
For the | ||||||||
Six Months | ||||||||
Ended | ||||||||
September 30, | For the | |||||||
2017 | Year Ended | |||||||
(Unaudited) | March 31, 2017 | |||||||
From Operations | ||||||||
Net investment income (loss) | $ | 240,336 | $ | (1,849,028 | ) | |||
Net realized gains (losses) on investments and foreign currency transactions | 32,342,523 | 87,109,885 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | 33,051,482 | 9,617,026 | ||||||
Change in Net Assets from Operations | 65,634,341 | 94,877,883 | ||||||
Distributions to Shareholders from: | ||||||||
Net investment income, Class A | — | — | ||||||
Net investment income, Class C | — | — | ||||||
Net investment income, Class Y | — | — | ||||||
Net investment income, Institutional Class | — | — | ||||||
Net realized gains, Class A | — | (5,709,545 | ) | |||||
Net realized gains, Class B | — | (11,306 | ) | |||||
Net realized gains, Class C | — | (4,186,541 | ) | |||||
Net realized gains, Class Y | — | (8,474,706 | ) | |||||
Net realized gains, Institutional Class | — | (1,018,216 | ) | |||||
Total Distributions | — | (19,400,314 | ) | |||||
Net Increase (Decrease) from Share Transactions(A) | (38,089,418 | ) | (167,892,838 | ) | ||||
Total Increase (Decrease) in Net Assets | 27,544,923 | (92,415,269 | ) | |||||
Net Assets | ||||||||
Beginning of period | 694,636,186 | 787,051,455 | ||||||
End of period | $ | 722,181,109 | $ | 694,636,186 | ||||
Accumulated Net Investment Income (Loss) | $ | (626,431 | ) | $ | (866,767 | ) |
(A) For details on share transaction by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 44 to 46.
See accompanying Notes to Financial Statements.
40 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Sands Capital Emerging | Small Cap | Sustainability and Impact | ||||||||||||||||||||
Markets Growth Fund | Growth Fund | Equity Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | Six Months | Six Months | ||||||||||||||||||||
Ended | Ended | Ended | ||||||||||||||||||||
September 30, | For the | September 30, | For the | September 30, | For the | |||||||||||||||||
2017 | Year Ended | 2017 | Year Ended | 2017 | Year Ended | |||||||||||||||||
(Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 | |||||||||||||||||
$ | (257,326 | ) | $ | (948,935 | ) | $ | (1,087,289 | ) | $ | (2,651,106 | ) | $ | 1,632,759 | $ | 2,222,227 | |||||||
6,551,934 | (4,895,839 | ) | 9,027,098 | (25,827,977 | ) | 3,196,365 | 2,720,054 | |||||||||||||||
46,594,897 | 34,827,193 | 12,369,726 | 54,388,132 | 31,223,775 | 32,511,636 | |||||||||||||||||
52,889,505 | 28,982,419 | 20,309,535 | 25,909,049 | 36,052,899 | 37,453,917 | |||||||||||||||||
— | — | — | — | — | (653,990 | ) | ||||||||||||||||
— | — | — | — | — | (28,717 | ) | ||||||||||||||||
— | — | — | — | — | (734,641 | ) | ||||||||||||||||
— | — | — | — | — | (155,934 | ) | ||||||||||||||||
— | — | — | (209,932 | ) | — | — | ||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | (82,596 | ) | — | — | ||||||||||||||||
— | — | — | (1,589,859 | ) | — | — | ||||||||||||||||
— | — | — | (90,861 | ) | — | — | ||||||||||||||||
— | — | — | (1,973,248 | ) | — | (1,573,282 | ) | |||||||||||||||
97,022,930 | 97,379,901 | (144,221,130 | ) | (192,771,204 | ) | 16,255,165 | (972,460 | ) | ||||||||||||||
149,912,435 | 126,362,320 | (123,911,595 | ) | (168,835,403 | ) | 52,308,064 | 34,908,175 | |||||||||||||||
285,869,059 | 159,506,739 | 429,364,134 | 598,199,537 | 303,586,524 | 268,678,349 | |||||||||||||||||
$ | 435,781,494 | $ | 285,869,059 | $ | 305,452,539 | $ | 429,364,134 | $ | 355,894,588 | $ | 303,586,524 | |||||||||||
$ | (567,436 | ) | $ | (310,110 | ) | $ | (1,549,786 | ) | $ | (462,497 | ) | $ | 2,310,811 | $ | 678,052 |
41 |
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone | Touchstone | |||||||||||||||||||||||||||||||
Flexible Income Fund | Focused Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||||
September 30, 2017 | Ended | September 30, 2017 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,230,159 | $ | 13,425,088 | 3,173,567 | $ | 34,165,603 | 4,970,954 | $ | 205,483,294 | 2,103,482 | $ | 81,569,477 | ||||||||||||||||||||
Reinvestment of distributions | 45,658 | 498,754 | 114,811 | 1,232,128 | — | — | 116,086 | 4,706,363 | ||||||||||||||||||||||||
Cost of Shares redeemed | (1,215,219 | ) | (13,290,282 | ) | (4,116,327 | ) | (44,045,496 | ) | (11,142,416 | ) | (461,559,811 | ) | (3,017,249 | ) | (118,313,282 | ) | ||||||||||||||||
Change from Class A Share Transactions | 60,598 | 633,560 | (827,949 | ) | (8,647,765 | ) | (6,171,462 | ) | (256,076,517 | ) | (797,681 | ) | (32,037,442 | ) | ||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 456,545 | 4,922,615 | 2,160,399 | 22,964,877 | 46,557 | 1,897,766 | 482,137 | 17,925,651 | ||||||||||||||||||||||||
Reinvestment of distributions | 37,376 | 402,843 | 84,701 | 896,553 | — | — | 12,653 | 494,586 | ||||||||||||||||||||||||
Cost of Shares redeemed | (873,712 | ) | (9,402,798 | ) | (1,355,234 | ) | (14,316,266 | ) | (300,073 | ) | (12,226,475 | ) | (394,700 | ) | (15,062,303 | ) | ||||||||||||||||
Change from Class C Share Transactions | (379,791 | ) | (4,077,340 | ) | 889,866 | 9,545,164 | (253,516 | ) | (10,328,709 | ) | 100,090 | 3,357,934 | ||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 13,518,173 | 148,176,265 | 25,265,156 | 272,373,506 | 872,747 | 37,795,304 | 4,259,573 | 168,900,525 | ||||||||||||||||||||||||
Reinvestment of distributions | 414,292 | 4,541,563 | 714,239 | 7,685,777 | — | — | 299,050 | 12,330,960 | ||||||||||||||||||||||||
Cost of Shares redeemed | (6,509,105 | ) | (71,314,530 | ) | (16,586,849 | ) | (177,812,998 | ) | (2,086,080 | ) | (90,085,719 | ) | (4,362,807 | ) | (173,810,089 | ) | ||||||||||||||||
Change from Class Y Share Transactions | 7,423,360 | 81,403,298 | 9,392,546 | 102,246,285 | (1,213,333 | ) | (52,290,415 | ) | 195,816 | 7,421,396 | ||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,026,563 | 11,228,943 | 5,579,839 | 59,878,292 | 180,897 | 7,863,466 | 318,160 | 12,296,441 | ||||||||||||||||||||||||
Reinvestment of distributions | 80,377 | 880,269 | 147,977 | 1,589,985 | — | — | 15,172 | 628,198 | ||||||||||||||||||||||||
Cost of Shares redeemed | (1,863,694 | ) | (20,348,032 | ) | (3,747,004 | ) | (40,482,613 | ) | (630,464 | ) | (26,938,307 | ) | (660,073 | ) | (26,193,108 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | (756,754 | ) | (8,238,820 | ) | 1,980,812 | 20,985,664 | (449,567 | ) | (19,074,841 | ) | (326,741 | ) | (13,268,469 | ) | ||||||||||||||||||
Change from Share Transactions | 6,347,413 | $ | 69,720,698 | 11,435,275 | $ | 124,129,348 | (8,087,878 | ) | $ | (337,770,482 | ) | (828,516 | ) | $ | (34,526,581 | ) |
(A) Represents the period from commencement of operations (April 1, 2016) through March 31, 2017.
See accompanying Notes to Financial Statements.
42 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Growth | Touchstone International | |||||||||||||||||||||||||||||
Opportunities Fund | Growth Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
September 30, 2017 | Ended | September 30, 2017 | Ended | |||||||||||||||||||||||||||
(Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 (A) | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
16,896 | $ | 533,396 | 117,538 | $ | 3,393,344 | 2,811 | $ | 33,426 | 3,590 | $ | 38,009 | |||||||||||||||||||
— | — | 42,553 | 1,194,474 | — | — | 1 | 6 | |||||||||||||||||||||||
(126,992 | ) | (4,105,239 | ) | (277,080 | ) | (7,824,211 | ) | — | — | — | — | |||||||||||||||||||
(110,096 | ) | (3,571,843 | ) | (116,989 | ) | (3,236,393 | ) | 2,811 | 33,426 | 3,591 | 38,015 | |||||||||||||||||||
5,857 | 159,518 | 15,540 | 374,733 | 2,631 | 32,597 | 250 | 2,500 | |||||||||||||||||||||||
— | — | 13,561 | 323,436 | — | — | — | — | |||||||||||||||||||||||
(35,187 | ) | (951,021 | ) | (190,408 | ) | (4,593,968 | ) | — | — | — | — | |||||||||||||||||||
(29,330 | ) | (791,503 | ) | (161,307 | ) | (3,895,799 | ) | 2,631 | 32,597 | 250 | 2,500 | |||||||||||||||||||
33,065 | 1,083,987 | 199,492 | 5,718,823 | — | — | 345 | 3,500 | |||||||||||||||||||||||
— | — | 59,054 | 1,694,188 | — | — | 1 | 11 | |||||||||||||||||||||||
(111,486 | ) | (3,640,292 | ) | (1,730,099 | ) | (49,539,781 | ) | — | — | — | — | |||||||||||||||||||
(78,421 | ) | (2,556,305 | ) | (1,471,553 | ) | (42,126,770 | ) | — | — | 346 | 3,511 | |||||||||||||||||||
455,349 | 14,820,208 | 739,765 | 21,407,544 | 232,108 | 2,740,020 | 1,447,175 | 14,754,377 | |||||||||||||||||||||||
— | — | 173,177 | 5,016,254 | — | — | 5,421 | 53,990 | |||||||||||||||||||||||
(237,911 | ) | (7,802,389 | ) | (2,357,174 | ) | (68,089,867 | ) | (76,867 | ) | (887,035 | ) | (352,628 | ) | (3,565,972 | ) | |||||||||||||||
217,438 | 7,017,819 | (1,444,232 | ) | (41,666,069 | ) | 155,241 | 1,852,985 | 1,099,968 | 11,242,395 | |||||||||||||||||||||
(409 | ) | $ | 98,168 | (3,194,081 | ) | $ | (90,925,031 | ) | 160,683 | $ | 1,919,008 | 1,104,155 | $ | 11,286,421 |
43 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone International | Touchstone Mid Cap | |||||||||||||||||||||||||||||||
Value Fund | Growth Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||||
September 30, 2017 | Ended | September 30, 2017 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 9,106 | $ | 66,625 | 10,152 | $ | 72,509 | 912,397 | $ | 24,858,000 | 1,497,124 | $ | 36,450,213 | ||||||||||||||||||||
Reinvestment of distributions | 6,308 | 48,767 | 55,117 | 378,173 | — | — | 220,840 | 5,417,207 | ||||||||||||||||||||||||
Cost of Shares redeemed | (47,409 | ) | (356,829 | ) | (74,778 | ) | (546,556 | ) | (1,606,838 | ) | (43,925,795 | ) | (2,734,825 | ) | (66,511,120 | ) | ||||||||||||||||
Change from Class A Share Transactions | (31,995 | ) | (241,437 | ) | (9,509 | ) | (95,874 | ) | (694,441 | ) | (19,067,795 | ) | (1,016,861 | ) | (24,643,700 | ) | ||||||||||||||||
Class B(A) | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | — | — | — | — | — | — | 108 | 1,827 | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | — | — | 491 | 8,558 | ||||||||||||||||||||||||
Cost of Shares redeemed | — | — | — | — | — | — | (68,421 | ) | (1,190,153 | ) | ||||||||||||||||||||||
Change from Class B Share Transactions | — | — | — | — | — | — | (67,822 | ) | (1,179,768 | ) | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 726 | 4,993 | 17,629 | 114,215 | 108,292 | 2,033,261 | 232,818 | 3,960,601 | ||||||||||||||||||||||||
Reinvestment of distributions | 387 | 2,771 | 1,826 | 11,725 | — | — | 189,293 | 3,202,841 | ||||||||||||||||||||||||
Cost of Shares redeemed | (2,057 | ) | (14,283 | ) | (3,250 | ) | (22,143 | ) | (1,649,713 | ) | (30,706,076 | ) | (1,907,512 | ) | (32,461,461 | ) | ||||||||||||||||
Change from Class C Share Transactions | (944 | ) | (6,519 | ) | 16,205 | 103,797 | (1,541,421 | ) | (28,672,815 | ) | (1,485,401 | ) | (25,298,019 | ) | ||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued/ | 32,518 | 244,359 | 39,383 | 286,761 | 2,564,080 | 71,765,856 | 4,398,245 | 111,297,135 | ||||||||||||||||||||||||
Reinvestment of distributions | 3,927 | 30,410 | 36,361 | 250,337 | — | — | 317,429 | 8,018,203 | ||||||||||||||||||||||||
Cost of Shares redeemed | (90,622 | ) | (672,937 | ) | (205,148 | ) | (1,515,781 | ) | (2,304,460 | ) | (64,487,798 | ) | (7,573,840 | ) | (190,634,337 | ) | ||||||||||||||||
Change from Class Y Share Transactions | (54,177 | ) | (398,168 | ) | (129,404 | ) | (978,683 | ) | 259,620 | 7,278,058 | (2,858,166 | ) | (71,318,999 | ) | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 285,951 | 2,201,322 | 114,412 | 842,904 | 220,070 | 6,248,689 | 313,502 | 7,980,744 | ||||||||||||||||||||||||
Reinvestment of distributions | 34,357 | 264,090 | 284,299 | 1,942,357 | — | — | 39,334 | 1,000,658 | ||||||||||||||||||||||||
Cost of Shares redeemed | (249,874 | ) | (1,861,389 | ) | (3,060,005 | ) | (22,380,381 | ) | (137,290 | ) | (3,875,555 | ) | (2,203,846 | ) | (54,433,754 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | 70,434 | 604,023 | (2,661,294 | ) | (19,595,120 | ) | 82,780 | 2,373,134 | (1,851,010 | ) | (45,452,352 | ) | ||||||||||||||||||||
Change from Share Transactions | (16,682 | ) | $ | (42,101 | ) | (2,784,002 | ) | $ | (20,565,880 | ) | (1,893,462 | ) | $ | (38,089,418 | ) | (7,279,260 | ) | $ | (167,892,838 | ) |
(A)Class B shares automatically convert to Class A shares after 8 years from the initial purchase. The conversion occurs in the month following the 8-year anniversary. During the year ended March 31, 2017, all Class B shares were converted to Class A shares as they reached their 8-year anniversary and are shown as share redemptions for Class B shares above.
See accompanying Notes to Financial Statements.
44 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Sands Capital | Touchstone Small Cap | |||||||||||||||||||||||||||||
Emerging Markets Growth Fund | Growth Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
September 30, 2017 | Ended | September 30, 2017 | Ended | |||||||||||||||||||||||||||
(Unaudited) | March 31, 2017 | (Unaudited) | March 31, 2017 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
— | $ | — | — | $ | — | 601,468 | $ | 3,158,618 | 3,614,218 | $ | 18,626,271 | |||||||||||||||||||
— | — | — | — | — | — | 36,189 | 192,888 | |||||||||||||||||||||||
— | — | — | — | (5,087,536 | ) | (26,572,992 | ) | (4,946,989 | ) | (25,080,223 | ) | |||||||||||||||||||
— | — | — | — | (4,486,068 | ) | (23,414,374 | ) | (1,296,582 | ) | (6,261,064 | ) | |||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | 26,530 | 115,059 | 487,377 | 2,069,131 | |||||||||||||||||||||||
— | — | — | — | — | — | 15,604 | 68,655 | |||||||||||||||||||||||
— | — | — | — | (855,477 | ) | (3,725,618 | ) | (2,051,056 | ) | (8,714,326 | ) | |||||||||||||||||||
— | — | — | — | (828,947 | ) | (3,610,559 | ) | (1,548,075 | ) | (6,576,540 | ) | |||||||||||||||||||
3,444,313 | 41,361,339 | 5,971,278 | 60,060,093 | 13,384,440 | 78,540,016 | 35,362,616 | 202,195,473 | |||||||||||||||||||||||
— | — | — | — | — | — | 210,558 | 1,250,703 | |||||||||||||||||||||||
(916,042 | ) | (11,120,536 | ) | (2,485,972 | ) | (24,267,752 | ) | (33,323,933 | ) | (196,644,447 | ) | (66,031,347 | ) | (374,886,480 | ) | |||||||||||||||
2,528,271 | 30,240,803 | 3,485,306 | 35,792,341 | (19,939,493 | ) | (118,104,431 | ) | (30,458,173 | ) | (171,440,304 | ) | |||||||||||||||||||
8,196,477 | 97,110,592 | 9,707,380 | 96,179,684 | 1,247,569 | 7,341,897 | 1,293,710 | 7,420,009 | |||||||||||||||||||||||
— | — | — | — | — | — | 10,078 | 60,366 | |||||||||||||||||||||||
(2,560,175 | ) | (30,328,465 | ) | (3,479,384 | ) | (34,592,124 | ) | (1,084,668 | ) | (6,433,663 | ) | (2,755,432 | ) | (15,973,671 | ) | |||||||||||||||
5,636,302 | 66,782,127 | 6,227,996 | 61,587,560 | 162,901 | 908,234 | (1,451,644 | ) | (8,493,296 | ) | |||||||||||||||||||||
8,164,573 | $ | 97,022,930 | 9,713,302 | $ | 97,379,901 | (25,091,607 | ) | $ | (144,221,130 | ) | (34,754,474 | ) | $ | (192,771,204 | ) |
45 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Sustainability | ||||||||||||||||
and Impact Equity Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
September 30, 2017 | Ended | |||||||||||||||
(Unaudited) | March 31, 2017 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 585,097 | $ | 13,328,492 | 345,879 | $ | 6,944,695 | ||||||||||
Reinvestment of distributions | — | — | 29,039 | 585,151 | ||||||||||||
Cost of Shares redeemed | (481,548 | ) | (11,035,523 | ) | (2,355,115 | ) | (47,349,366 | ) | ||||||||
Change from Class A Share Transactions | 103,549 | 2,292,969 | (1,980,197 | ) | (39,819,520 | ) | ||||||||||
Class B(A) | ||||||||||||||||
Cost of Shares redeemed | — | — | (27,123 | ) | (470,493 | ) | ||||||||||
Change from Class B Share Transactions | — | — | (27,123 | ) | (470,493 | ) | ||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 144,973 | 2,914,572 | 149,007 | 2,569,234 | ||||||||||||
Reinvestment of distributions | — | — | 1,120 | 19,562 | ||||||||||||
Cost of Shares redeemed | (738,927 | ) | (14,584,980 | ) | (996,552 | ) | (17,254,366 | ) | ||||||||
Change from Class C Share Transactions | (593,954 | ) | (11,670,408 | ) | (846,425 | ) | (14,665,570 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 1,560,344 | 36,857,664 | 3,242,442 | 66,535,198 | ||||||||||||
Reinvestment of distributions | — | — | 31,446 | 650,605 | ||||||||||||
Cost of Shares redeemed | (716,975 | ) | (16,880,119 | ) | (1,642,723 | ) | (33,852,465 | ) | ||||||||
Change from Class Y Share Transactions | 843,369 | 19,977,545 | 1,631,165 | 33,333,338 | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 267,392 | 6,456,798 | 1,064,008 | 22,131,021 | ||||||||||||
Reinvestment of distributions | — | — | 7,533 | 155,934 | ||||||||||||
Cost of Shares redeemed | (32,901 | ) | (801,739 | ) | (81,168 | ) | (1,637,170 | ) | ||||||||
Change from Institutional Class Share Transactions | 234,491 | 5,655,059 | 990,373 | 20,649,785 | ||||||||||||
Change from Share Transactions | 587,455 | $ | 16,255,165 | (232,207 | ) | $ | (972,460 | ) |
(A)Class B shares automatically convert to Class A shares after 8 years from the initial purchase. The conversion occurs in the month following the 8-year anniversary. During the year ended March 31, 2017, all Class B shares were converted to Class A shares as they reached their 8-year anniversary and are shown as share redemptions for Class B shares above.
See accompanying Notes to Financial Statements.
46 |
Touchstone Flexible Income Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.71 | $ | 10.58 | $ | 10.67 | $ | 10.60 | $ | 10.94 | $ | 10.76 | $ | 10.47 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.15 | 0.30 | 0.32 | 0.43 | 0.51 | 0.35 | (B) | 0.49 | (C) | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.23 | 0.11 | (0.10 | ) | 0.11 | (0.37 | ) | 0.16 | 0.31 | |||||||||||||||||||
Total from investment operations | 0.38 | 0.41 | 0.22 | 0.54 | 0.14 | 0.51 | 0.80 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.28 | ) | (0.31 | ) | (0.47 | ) | (0.48 | ) | (0.33 | ) | (0.51 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.95 | $ | 10.71 | $ | 10.58 | $ | 10.67 | $ | 10.60 | $ | 10.94 | $ | 10.76 | ||||||||||||||
Total return(D) | 3.52 | %(E) | 3.93 | % | 2.13 | % | 5.22 | % | 1.45 | % | 4.77 | %(E) | 7.86 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 51,314 | $ | 49,544 | $ | 57,671 | $ | 32,695 | $ | 25,928 | $ | 41,301 | $ | 49,458 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short) | 1.09 | %(F)(G) | 1.10 | %(G) | 1.09 | % | 1.09 | % | 0.98 | % | 0.94 | %(F) | 0.95 | % | ||||||||||||||
Gross expenses (including dividend and interest expense on securities sold short) | 1.26 | %(F)(H) | 1.30 | %(H) | 1.32 | % | 1.35 | % | 1.35 | % | 1.37 | %(F) | 1.60 | % | ||||||||||||||
Net investment income | 2.58 | %(F) | 2.74 | % | 3.19 | % | 3.95 | % | 4.82 | % | 4.76 | %(B)(F) | 4.65 | % | ||||||||||||||
Portfolio turnover rate | 50 | %(E) | 127 | % | 122 | % | 102 | % | 44 | % | 41 | %(E) | 47 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, Class A net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.09% and 1.09% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
(H) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.26% and 1.29% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
See accompanying Notes to Financial Statements.
47 |
Financial Highlights (Continued)
Touchstone Flexible Income Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.57 | $ | 10.44 | $ | 10.54 | $ | 10.47 | $ | 10.82 | $ | 10.65 | $ | 10.36 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.09 | 0.20 | 0.26 | 0.34 | 0.43 | 0.29 | (B) | 0.40 | (C) | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.24 | 0.13 | (0.12 | ) | 0.12 | (0.37 | ) | 0.15 | 0.32 | |||||||||||||||||||
Total from investment operations | 0.33 | 0.33 | 0.14 | 0.46 | 0.06 | 0.44 | 0.72 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.20 | ) | (0.24 | ) | (0.39 | ) | (0.41 | ) | (0.27 | ) | (0.43 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.81 | $ | 10.57 | $ | 10.44 | $ | 10.54 | $ | 10.47 | $ | 10.82 | $ | 10.65 | ||||||||||||||
Total return(D) | 3.17 | %(E) | 3.22 | % | 1.32 | % | 4.52 | % | 0.61 | % | 4.20 | %(E) | 7.16 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 52,161 | $ | 55,043 | $ | 45,079 | $ | 25,853 | $ | 21,043 | $ | 26,087 | $ | 25,115 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short) | 1.84 | %(F)(G) | 1.85 | %(G) | 1.84 | % | 1.84 | % | 1.74 | % | 1.69 | %(F) | 1.70 | % | ||||||||||||||
Gross expenses (including dividend and interest expense on securities sold short) | 1.98 | %(F)(H) | 2.00 | %(H) | 2.05 | % | 2.10 | % | 2.09 | % | 2.16 | %(F) | 2.35 | % | ||||||||||||||
Net investment income | 1.83 | %(F) | 1.99 | % | 2.44 | % | 3.20 | % | 4.07 | % | 4.01 | %(B)(F) | 3.82 | % | ||||||||||||||
Portfolio turnover rate | 50 | %(E) | 127 | % | 122 | % | 102 | % | 44 | % | 41 | %(E) | 47 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class C is 1.84% and 1.84% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
(H) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class C is 1.98% and 1.99% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
See accompanying Notes to Financial Statements.
48 |
Financial Highlights (Continued)
Touchstone Flexible Income Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A)(B) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.75 | $ | 10.61 | $ | 10.70 | $ | 10.62 | $ | 10.97 | $ | 10.79 | $ | 10.49 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.15 | 0.32 | 0.36 | 0.46 | 0.54 | 0.37 | (C) | 0.50 | (D) | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.24 | 0.13 | (0.11 | ) | 0.12 | (0.38 | ) | 0.16 | 0.33 | |||||||||||||||||||
Total from investment operations | 0.39 | 0.45 | 0.25 | 0.58 | 0.16 | 0.53 | 0.83 | |||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.31 | ) | (0.34 | ) | (0.50 | ) | (0.51 | ) | (0.35 | ) | (0.53 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.99 | $ | 10.75 | $ | 10.61 | $ | 10.70 | $ | 10.62 | $ | 10.97 | $ | 10.79 | ||||||||||||||
Total return | 3.63 | %(E) | 4.28 | % | 2.38 | % | 5.58 | % | 1.63 | % | 4.96 | %(E) | 8.21 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 555,946 | $ | 464,002 | $ | 358,423 | $ | 238,081 | $ | 151,652 | $ | 199,293 | $ | 200,325 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short) | 0.84 | %(F)(G) | 0.85 | %(G) | 0.84 | % | 0.84 | % | 0.71 | % | 0.64 | %(F) | 0.70 | % | ||||||||||||||
Gross expenses (including dividend and interest expense on securities sold short) | 0.97 | %(F)(H) | 1.00 | %(H) | 1.05 | % | 1.01 | % | 1.00 | % | 1.05 | %(F) | 1.35 | % | ||||||||||||||
Net investment income | 2.83 | %(F) | 2.99 | % | 3.44 | % | 4.21 | % | 5.10 | % | 5.06 | %(C)(F) | 4.80 | % | ||||||||||||||
Portfolio turnover rate | 50 | %(E) | 127 | % | 122 | % | 102 | % | 44 | % | 41 | %(E) | 47 | % |
(A) | Effective September 10, 2012, Institutional Class shares were renamed Class Y shares. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class Y net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively. |
(D) | The net investment income per share is based on average shares outstanding for the period. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 0.84% and 0.84% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
(H) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 0.97% and 0.99% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
See accompanying Notes to Financial Statements.
49 |
Financial Highlights (Continued)
Touchstone Flexible Income Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September 30, | Period Ended | |||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | ||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.74 | $ | 10.60 | $ | 10.69 | $ | 10.62 | $ | 10.96 | $ | 10.86 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.16 | 0.33 | 0.36 | 0.46 | 0.54 | 0.30 | (B) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.23 | 0.13 | (0.10 | ) | 0.12 | (0.36 | ) | 0.12 | ||||||||||||||||
Total from investment operations | 0.39 | 0.46 | 0.26 | 0.58 | 0.18 | 0.42 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.32 | ) | (0.35 | ) | (0.51 | ) | (0.52 | ) | (0.32 | ) | ||||||||||||
Net asset value at end of period | $ | 10.98 | $ | 10.74 | $ | 10.60 | $ | 10.69 | $ | 10.62 | $ | 10.96 | ||||||||||||
Total return | 3.68 | %(C) | 4.28 | % | 2.57 | % | 5.58 | % | 1.81 | % | 3.93 | %(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 98,666 | $ | 104,631 | $ | 82,286 | $ | 44,732 | $ | 41,361 | $ | 20,589 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short) | 0.74 | %(D)(E) | 0.75 | %(E) | 0.74 | % | 0.74 | % | 0.65 | % | 0.59 | %(D) | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short) | 0.90 | %(D)(F) | 0.92 | %(F) | 0.94 | % | 0.95 | % | 0.95 | % | 1.03 | %(D) | ||||||||||||
Net investment income | 2.93 | %(D) | 3.09 | % | 3.54 | % | 4.30 | % | 5.16 | % | 5.11 | %(B)(D) | ||||||||||||
Portfolio turnover rate | 50 | %(C) | 127 | % | 122 | % | 102 | % | 44 | % | 41 | %(C) |
(A) | Represents the period from commencement of operations (September 10, 2012) through March 31, 2013. |
(B) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Institutional Class net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Institutional Class is 0.74% and 0.74% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for institutional Class is 0.90% and 0.91% for the six months ended September 30, 2017 and year ended March 31, 2017, respectively. |
See accompanying Notes to Financial Statements.
50 |
Financial Highlights (Continued)
Touchstone Focused Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 41.47 | $ | 36.68 | $ | 37.19 | $ | 34.87 | $ | 27.55 | $ | 23.63 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income(A) | 0.08 | 0.15 | 0.16 | 0.20 | 0.11 | 0.16 | ||||||||||||||||||
Net realized and unrealized gains on investments | 2.02 | 5.12 | 0.38 | 2.23 | 7.46 | 3.79 | (B) | |||||||||||||||||
Total from investment operations | 2.10 | 5.27 | 0.54 | 2.43 | 7.57 | 3.95 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.14 | ) | (0.20 | ) | (0.11 | ) | (0.25 | ) | (0.03 | ) | |||||||||||||
Realized capital gains | — | (0.34 | ) | (0.85 | ) | — | — | — | ||||||||||||||||
Total distributions | — | (0.48 | ) | (1.05 | ) | (0.11 | ) | (0.25 | ) | (0.03 | ) | |||||||||||||
Net asset value at end of period | $ | 43.57 | $ | 41.47 | $ | 36.68 | $ | 37.19 | $ | 34.87 | $ | 27.55 | ||||||||||||
Total return(C) | 5.07 | %(D) | 14.45 | % | 1.47 | % | 6.99 | % | 27.67 | % | 16.75 | %(B) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 178,052 | $ | 425,366 | $ | 405,458 | $ | 297,072 | $ | 233,841 | $ | 8,497 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.20 | %(E) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Gross expenses | 1.29 | %(E) | 1.28 | % | 1.31 | % | 1.37 | % | 1.46 | % | 1.90 | % | ||||||||||||
Net investment income | 0.36 | %(E) | 0.39 | % | 0.43 | % | 0.57 | % | 0.35 | % | 0.66 | % | ||||||||||||
Portfolio turnover rate | 4 | %(D)(F) | 20 | % | 28 | % | 33 | % | 27 | %(G) | 189 | % |
Touchstone Focused Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | Period Ended | |||||||||||||||||||||||
30, 2017 | Year Ended March 31, | March 31, | ||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(H) | |||||||||||||||||||
Net asset value at beginning of period | $ | 39.90 | $ | 35.54 | $ | 36.34 | $ | 34.32 | $ | 27.33 | $ | 22.61 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss(A) | (0.08 | ) | (0.13 | ) | (0.11 | ) | (0.06 | ) | (0.13 | ) | (0.02 | ) | ||||||||||||
Net realized and unrealized gains on investments | 1.95 | 4.94 | 0.37 | 2.18 | 7.38 | 4.80 | (B) | |||||||||||||||||
Total from investment operations | 1.87 | 4.81 | 0.26 | 2.12 | 7.25 | 4.78 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.11 | ) | (0.21 | ) | (0.10 | ) | (0.26 | ) | (0.06 | ) | |||||||||||||
Realized capital gains | — | (0.34 | ) | (0.85 | ) | — | — | — | ||||||||||||||||
Total distributions | — | (0.45 | ) | (1.06 | ) | (0.10 | ) | (0.26 | ) | (0.06 | ) | |||||||||||||
Net asset value at end of period | $ | 41.77 | $ | 39.90 | $ | 35.54 | $ | 36.34 | $ | 34.32 | $ | 27.33 | ||||||||||||
Total return(C) | 4.69 | %(D) | 13.56 | % | 0.73 | % | 6.18 | % | 26.72 | % | 21.19 | %(B)(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 45,700 | $ | 53,776 | $ | 44,338 | $ | 9,617 | $ | 5,626 | $ | 60 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.95 | %(E) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | %(E) | ||||||||||||
Gross expenses | 1.96 | %(E) | 1.97 | % | 2.00 | % | 2.09 | % | 2.84 | % | 258.39 | %(E) | ||||||||||||
Net investment loss | (0.39 | )%(E) | (0.36 | )% | (0.32 | )% | (0.18 | )% | (0.40 | )% | (0.09 | )%(E) | ||||||||||||
Portfolio turnover rate | 4 | %(D)(F) | 20 | % | 28 | % | 33 | % | 27 | %(G) | 189 | % |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(B) | Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.76% and 0.78% for Class A and Class C, respectively. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
(H) | Represents the period from commencement of operations (April 16, 2012) through March 31, 2013. |
See accompanying Notes to Financial Statements.
51 |
Financial Highlights (Continued)
Touchstone Focused Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 42.21 | $ | 37.29 | $ | 37.76 | $ | 35.34 | $ | 27.86 | $ | 23.85 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income(A) | 0.14 | 0.27 | 0.26 | 0.31 | 0.19 | 0.22 | ||||||||||||||||||
Net realized and unrealized gains on investments | 2.06 | 5.22 | 0.39 | 2.26 | 7.54 | 3.84 | (B) | |||||||||||||||||
Total from investment operations | 2.20 | 5.49 | 0.65 | 2.57 | 7.73 | 4.06 | ||||||||||||||||||
Distributions from: | — | (0.23 | ) | (0.27 | ) | (0.15 | ) | (0.25 | ) | (0.05 | ) | |||||||||||||
Net investment income | ||||||||||||||||||||||||
Realized capital gains | — | (0.34 | ) | (0.85 | ) | — | — | — | ||||||||||||||||
Total distributions | — | (0.57 | ) | (1.12 | ) | (0.15 | ) | (0.25 | ) | (0.05 | ) | |||||||||||||
Net asset value at end of period | $ | 44.41 | $ | 42.21 | $ | 37.29 | $ | 37.76 | $ | 35.34 | $ | 27.86 | ||||||||||||
Total return | 5.21 | %(C) | 14.77 | % | 1.75 | % | 7.29 | % | 27.95 | % | 17.07 | %(B) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 971,623 | $ | 974,660 | $ | 853,900 | $ | 756,579 | $ | 736,023 | $ | 578,006 | ||||||||||||
Ratio to average net assets: | 0.92 | %(D) | 0.92 | % | 0.93 | % | 0.92 | % | 0.94 | % | 0.95 | % | ||||||||||||
Net expenses | ||||||||||||||||||||||||
Gross expenses | 0.92 | %(D) | 0.92 | % | 0.94 | % | 0.97 | % | 1.02 | % | 1.05 | % | ||||||||||||
Net investment income | 0.64 | %(D) | 0.68 | % | 0.70 | % | 0.85 | % | 0.61 | % | 0.91 | % | ||||||||||||
Portfolio turnover rate | 4 | %(C)(E) | 20 | % | 28 | % | 33 | % | 27 | %(F) | 189 | % |
Touchstone Focused Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 42.38 | $ | 37.45 | $ | 37.91 | $ | 35.47 | $ | 27.96 | $ | 23.91 | ||||||||||||
Income from investment operations: | ||||||||||||||||||||||||
Net investment income(A) | 0.16 | 0.30 | 0.31 | 0.35 | 0.24 | 0.25 | ||||||||||||||||||
Net realized and unrealized gains on investments | 2.07 | 5.24 | 0.39 | 2.28 | 7.57 | 3.86 | (B) | |||||||||||||||||
Total from investment operations | 2.23 | 5.54 | 0.70 | 2.63 | 7.81 | 4.11 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.27 | ) | (0.31 | ) | (0.19 | ) | (0.30 | ) | (0.06 | ) | |||||||||||||
Realized capital gains | — | (0.34 | ) | (0.85 | ) | — | — | — | ||||||||||||||||
Total distributions | — | (0.61 | ) | (1.16 | ) | (0.19 | ) | (0.30 | ) | (0.06 | ) | |||||||||||||
Net asset value at end of period | $ | 44.61 | $ | 42.38 | $ | 37.45 | $ | 37.91 | $ | 35.47 | $ | 27.96 | ||||||||||||
Total return | 5.26 | %(C) | 14.84 | % | 1.89 | % | 7.40 | % | 28.19 | % | 17.24 | %(B) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 23,510 | $ | 41,389 | $ | 48,805 | $ | 51,765 | $ | 30,446 | $ | 589 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.83 | %(D) | 0.83 | % | 0.82 | % | 0.80 | % | 0.80 | % | 0.80 | % | ||||||||||||
Gross expenses | 0.92 | %(D) | 0.88 | % | 0.90 | % | 0.88 | % | 1.00 | % | 1.16 | % | ||||||||||||
Net investment income | 0.73 | %(D) | 0.76 | % | 0.81 | % | 0.97 | % | 0.75 | % | 1.06 | % | ||||||||||||
Portfolio turnover rate | 4 | %(C)(E) | 20 | % | 28 | % | 33 | % | 27 | %(F) | 189 | % |
(A) | The net investment income per share is based on average shares outstanding for the period. |
(B) | Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.76% and 0.75% for Class Y and Institutional Class, respectively. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
(F) | Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
52 |
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.20 | $ | 27.35 | $ | 33.29 | $ | 32.61 | $ | 27.05 | $ | 25.64 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (— | )(A) | (0.08 | ) | (0.15 | ) | 0.01 | (0.01 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 3.31 | 3.86 | (2.90 | ) | 4.82 | 6.91 | 3.35 | |||||||||||||||||
Total from investment operations | 3.29 | 3.86 | (2.98 | ) | 4.67 | 6.92 | 3.34 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (1.01 | ) | (2.96 | ) | (3.99 | ) | (1.36 | ) | (1.93 | ) | |||||||||||||
Net asset value at end of period | $ | 33.49 | $ | 30.20 | $ | 27.35 | $ | 33.29 | $ | 32.61 | $ | 27.05 | ||||||||||||
Total return(B) | 10.90 | %(C) | 14.38 | % | (9.12 | )% | 14.99 | % | 25.84 | % | 14.08 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 39,291 | $ | 38,752 | $ | 38,297 | $ | 49,162 | $ | 47,552 | $ | 74,588 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(D) | 1.24 | % | 1.24 | % | 1.24 | % | 1.22 | % | 1.22 | % | ||||||||||||
Gross expenses | 1.38 | %(D) | 1.39 | % | 1.38 | % | 1.40 | % | 1.43 | % | 1.37 | % | ||||||||||||
Net investment income (loss) | (0.12 | )%(D) | (0.01 | )% | (0.24 | )% | (0.47 | )% | 0.09 | % | (0.06 | )% | ||||||||||||
Portfolio turnover rate | 41 | %(C) | 90 | % | 137 | % | 87 | % | 79 | % | 95 | %(E) |
Touchstone Growth Opportunities Fund — Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 25.60 | $ | 23.51 | $ | 29.27 | $ | 29.32 | $ | 24.62 | $ | 23.68 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.12 | ) | (0.23 | ) | (0.24 | ) | (0.33 | ) | (0.18 | ) | (0.17 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.81 | 3.33 | (2.56 | ) | 4.27 | 6.24 | 3.04 | |||||||||||||||||
Total from investment operations | 2.69 | 3.10 | (2.80 | ) | 3.94 | 6.06 | 2.87 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (1.01 | ) | (2.96 | ) | (3.99 | ) | (1.36 | ) | (1.93 | ) | |||||||||||||
Net asset value at end of period | $ | 28.29 | $ | 25.60 | $ | 23.51 | $ | 29.27 | $ | 29.32 | $ | 24.62 | ||||||||||||
Total return(B) | 10.51 | %(C) | 13.49 | % | (9.78 | )% | 14.11 | % | 24.92 | % | 13.24 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 8,644 | $ | 8,574 | $ | 11,665 | $ | 13,813 | $ | 12,498 | $ | 10,375 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(D) | 1.99 | % | 1.99 | % | 1.99 | % | 1.97 | % | 1.97 | % | ||||||||||||
Gross expenses | 2.31 | %(D) | 2.26 | % | 2.20 | % | 2.21 | % | 2.25 | % | 2.37 | % | ||||||||||||
Net investment loss | (0.87 | )%(D) | (0.76 | )% | (0.99 | )% | (1.22 | )% | (0.66 | )% | (0.81 | )% | ||||||||||||
Portfolio turnover rate | 41 | %(C) | 90 | % | 137 | % | 87 | % | 79 | % | 95 | %(E) |
(A) | Less than $(0.005) per share. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of the Fifth Third Mid Cap Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
53 |
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 30.87 | $ | 27.90 | $ | 33.81 | $ | 32.97 | $ | 27.27 | $ | 25.80 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.02 | 0.10 | — | (A) | (0.06 | ) | 0.11 | 0.03 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 3.39 | 3.91 | (2.95 | ) | 4.90 | 6.96 | 3.40 | |||||||||||||||||
Total from investment operations | 3.41 | 4.01 | (2.95 | ) | 4.84 | 7.07 | 3.43 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.03 | ) | — | (0.01 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||||
Realized capital gains | — | (1.01 | ) | (2.96 | ) | (3.99 | ) | (1.36 | ) | (1.93 | ) | |||||||||||||
Total distributions | — | (1.04 | ) | (2.96 | ) | (4.00 | ) | (1.37 | ) | (1.96 | ) | |||||||||||||
Net asset value at end of period | $ | 34.28 | $ | 30.87 | $ | 27.90 | $ | 33.81 | $ | 32.97 | $ | 27.27 | ||||||||||||
Total return | 11.05 | %(B) | 14.64 | % | (8.88 | )% | 15.32 | % | 26.23 | % | 14.38 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 49,750 | $ | 47,222 | $ | 83,721 | $ | 107,295 | $ | 92,063 | $ | 35,354 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(C) | 0.99 | % | 0.99 | % | 0.94 | % | 0.92 | % | 0.96 | % | ||||||||||||
Gross expenses | 1.08 | %(C) | 1.07 | % | 1.07 | % | 1.01 | % | 1.03 | % | 1.16 | % | ||||||||||||
Net investment income (loss) | 0.13 | %(C) | 0.24 | % | 0.01 | % | (0.17 | )% | 0.39 | % | 0.19 | % | ||||||||||||
Portfolio turnover rate | 41 | %(B) | 90 | % | 137 | % | 87 | % | 79 | % | 95 | %(D) |
Touchstone Growth Opportunities Fund—Institutional Class
Selected data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, 2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 31.16 | $ | 28.15 | $ | 34.05 | $ | 33.18 | $ | 27.42 | $ | 25.92 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.12 | 0.01 | (0.04 | ) | 0.14 | 0.07 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 3.42 | 3.96 | (2.95 | ) | 4.92 | 7.01 | 3.41 | |||||||||||||||||
Total from investment operations | 3.46 | 4.08 | (2.94 | ) | 4.88 | 7.15 | 3.48 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.06 | ) | — | (0.02 | ) | (0.03 | ) | (0.05 | ) | ||||||||||||||
Realized capital gains | — | (1.01 | ) | (2.96 | ) | (3.99 | ) | (1.36 | ) | (1.93 | ) | |||||||||||||
Total distributions | — | (1.07 | ) | (2.96 | ) | (4.01 | ) | (1.39 | ) | (1.98 | ) | |||||||||||||
Net asset value at end of period | $ | 34.62 | $ | 31.16 | $ | 28.15 | $ | 34.05 | $ | 33.18 | $ | 27.42 | ||||||||||||
Total return | 11.14 | %(B) | 14.77 | % | (8.79 | )% | 15.39 | % | 26.34 | % | 14.50 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 174,224 | $ | 150,038 | $ | 176,191 | $ | 134,795 | $ | 115,769 | $ | 93,800 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.89 | %(C) | 0.89 | % | 0.89 | % | 0.87 | % | 0.84 | % | 0.84 | % | ||||||||||||
Gross expenses | 1.01 | %(C) | 1.00 | % | 0.98 | % | 0.97 | % | 0.98 | % | 1.00 | % | ||||||||||||
Net investment income (loss) | 0.23 | %(C) | 0.34 | % | 0.11 | % | (0.10 | )% | 0.47 | % | 0.31 | % | ||||||||||||
Portfolio turnover rate | 41 | %(B) | 90 | % | 137 | % | 87 | % | 79 | % | 95 | %(D) |
(A) | Less than $0.005 per share. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of the Fifth Third Mid Cap Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
54 |
Financial Highlights (Continued)
Touchstone International Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
September 30, | Year Ended | |||||||
2017 | March 31, | |||||||
(Unaudited) | 2017(A) | |||||||
Net asset value at beginning of period | $ | 10.80 | $ | 10.00 | ||||
Income from investment operations: | ||||||||
Net investment income | 0.03 | 0.02 | ||||||
Net realized and unrealized gains on investments | 1.59 | 0.80 | ||||||
Total from investment operations | 1.62 | 0.82 | ||||||
Distributions from: | ||||||||
Net investment income | — | (0.02 | ) | |||||
Net asset value at end of period | $ | 12.42 | $ | 10.80 | ||||
Total return(B) | 15.00 | %(C) | 8.26 | % | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 79 | $ | 39 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 1.32 | %(D) | 1.32 | % | ||||
Gross expenses | 18.60 | %(D) | 190.56 | % | ||||
Net investment income | 0.89 | %(D) | 0.57 | % | ||||
Portfolio turnover rate | 28 | %(C) | 63 | % |
Touchstone International Growth Fund— Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
September 30, | Year Ended | |||||||
2017 | March 31, | |||||||
(Unaudited) | 2017(A) | |||||||
Net asset value at beginning of period | $ | 10.74 | $ | 10.00 | ||||
Income from investment operations: | ||||||||
Net investment income (loss) | 0.02 | (0.02 | ) | |||||
Net realized and unrealized gains on investments | 1.55 | 0.76 | ||||||
Total from investment operations | 1.57 | 0.74 | ||||||
Net asset value at end of period | $ | 12.31 | $ | 10.74 | ||||
Total return(B) | 14.62 | %(C) | 7.40 | % | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 35 | $ | 3 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 2.07 | %(D) | 2.07 | % | ||||
Gross expenses | 161.79 | %(D) | 291.55 | % | ||||
Net investment income (loss) | 0.12 | %(D) | (0.18 | )% | ||||
Portfolio turnover rate | 28 | %(C) | 63 | % |
(A) | Represents the period from commencement of operations (April 1, 2016) through March 31, 2017. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
55 |
Financial Highlights (Continued)
Touchstone International Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
September 30, | Year Ended | |||||||
2017 | March 31, | |||||||
(Unaudited) | 2017(A) | |||||||
Net asset value at beginning of period | $ | 10.79 | $ | 10.00 | ||||
Income from investment operations: | ||||||||
Net investment income | 0.07 | 0.08 | ||||||
Net realized and unrealized gains on investments | 1.56 | 0.76 | ||||||
Total from investment operations | 1.63 | 0.84 | ||||||
Distributions from: | ||||||||
Net investment income | — | (0.05 | ) | |||||
Net asset value at end of period | $ | 12.42 | $ | 10.79 | ||||
Total return | 15.11 | %(B) | 8.39 | % | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 4 | $ | 4 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 1.07 | %(C) | 1.07 | % | ||||
Gross expenses | 192.58 | %(C) | 276.18 | % | ||||
Net investment income | 1.14 | %(C) | 0.82 | % | ||||
Portfolio turnover rate | 28 | %(B) | 63 | % |
Touchstone International Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
September 30, | Year Ended | |||||||
2017 | March 31, | |||||||
(Unaudited) | 2017(A) | |||||||
Net asset value at beginning of period | $ | 10.80 | $ | 10.00 | ||||
Income from investment operations: | ||||||||
Net investment income | 0.06 | 0.08 | ||||||
Net realized and unrealized gains on investments | 1.57 | 0.77 | ||||||
Total from investment operations | 1.63 | 0.85 | ||||||
Distributions from: | ||||||||
Net investment income | — | (0.05 | ) | |||||
Net asset value at end of period | $ | 12.43 | $ | 10.80 | ||||
Total return | 15.09 | %(B) | 8.56 | % | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 15,605 | $ | 11,874 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.97 | %(C) | 0.97 | % | ||||
Gross expenses | 1.58 | %(C) | 1.86 | % | ||||
Net investment income | 1.23 | %(C) | 0.92 | % | ||||
Portfolio turnover rate | 28 | %(B) | 63 | % |
(A) | Represents the period from commencement of operations (April 1, 2016) through March 31, 2017. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
56 |
Financial Highlights (Continued)
Touchstone International Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 7.20 | $ | 7.37 | $ | 8.41 | $ | 9.12 | $ | 7.62 | $ | 7.06 | $ | 8.42 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.07 | 0.16 | (B) | 0.14 | (B) | 0.18 | 0.24 | 0.06 | (B) | 0.14 | (B) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.78 | 0.57 | (0.97 | ) | (0.63 | ) | 1.35 | 0.73 | (1.30 | ) | ||||||||||||||||||
Total from investment operations | 0.85 | 0.73 | (0.83 | ) | (0.45 | ) | 1.59 | 0.79 | (1.16 | ) | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.90 | ) | (0.21 | ) | (0.26 | ) | (0.09 | ) | (0.23 | ) | (0.20 | ) | ||||||||||||||
Net asset value at end of period | $ | 7.93 | $ | 7.20 | $ | 7.37 | $ | 8.41 | $ | 9.12 | $ | 7.62 | $ | 7.06 | ||||||||||||||
Total return(C) | 11.81 | %(D) | 10.80 | % | (9.97 | )% | (4.95 | )% | 20.90 | % | 11.15 | %(D) | (13.67 | )% | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 3,653 | $ | 3,548 | $ | 3,700 | $ | 5,280 | $ | 6,032 | $ | 6,394 | $ | 7,266 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.34 | %(E) | 1.34 | % | 1.36 | % | 1.39 | % | 1.37 | % | 1.36 | %(E)(F) | 1.40 | %(F) | ||||||||||||||
Gross expenses | 2.67 | %(E) | 2.56 | % | 2.10 | % | 1.97 | % | 1.79 | % | 2.22 | %(E) | 1.68 | % | ||||||||||||||
Net investment income | 2.59 | %(E) | 2.16 | % | 1.78 | % | 1.89 | % | 2.32 | % | 1.21 | %(E) | 2.00 | % | ||||||||||||||
Portfolio turnover rate | 28 | %(D) | 23 | % | 38 | % | 26 | % | 31 | % | 133 | %(D) | 121 | % |
Touchstone International Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 6.67 | $ | 6.83 | $ | 7.77 | $ | 8.46 | $ | 7.10 | $ | 6.59 | $ | 7.85 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.05 | 0.09 | (B) | 0.08 | (B) | 0.07 | 0.15 | 0.02 | (B) | 0.08 | (B) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.70 | 0.54 | (0.90 | ) | (0.55 | ) | 1.27 | 0.67 | (1.21 | ) | ||||||||||||||||||
Total from investment operations | 0.75 | 0.63 | (0.82 | ) | (0.48 | ) | 1.42 | 0.69 | (1.13 | ) | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.79 | ) | (0.12 | ) | (0.21 | ) | (0.06 | ) | (0.18 | ) | (0.13 | ) | ||||||||||||||
Net asset value at end of period | $ | 7.33 | $ | 6.67 | $ | 6.83 | $ | 7.77 | $ | 8.46 | $ | 7.10 | $ | 6.59 | ||||||||||||||
Total return(C) | 11.30 | %(D) | 10.01 | % | (10.61 | )% | (5.72 | )% | 20.05 | % | 10.53 | %(D) | (14.37 | )% | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 242 | $ | 227 | $ | 122 | $ | 233 | $ | 216 | $ | 217 | $ | 169 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 2.09 | %(E) | 2.09 | % | 2.11 | % | 2.14 | % | 2.12 | % | 2.11 | %(E)(F) | 2.15 | %(F) | ||||||||||||||
Gross expenses | 9.14 | %(E) | 11.75 | % | 9.23 | % | 8.35 | % | 6.04 | % | 9.33 | %(E) | 2.43 | % | ||||||||||||||
Net investment income | 1.84 | %(E) | 1.41 | % | 1.03 | % | 1.14 | % | 1.57 | % | 0.46 | %(E) | 1.24 | % | ||||||||||||||
Portfolio turnover rate | 28 | %(D) | 23 | % | 38 | % | 26 | % | 31 | % | 133 | %(D) | 121 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Includes interest expense relating to settlement of foreign futures. Interest expense was less than 0.005% for the eight months ended March 31, 2013 and 0.02% for the year ended July 31, 2012. |
See accompanying Notes to Financial Statements.
57 |
Financial Highlights (Continued)
Touchstone International Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A)(B) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 7.21 | $ | 7.39 | $ | 8.41 | $ | 9.13 | $ | 7.62 | $ | 7.07 | $ | 8.44 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.19 | 0.18 | (C) | 0.17 | (C) | 0.23 | 0.19 | 0.07 | (C) | 0.16 | (C) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.67 | 0.58 | (0.98 | ) | (0.66 | ) | 1.43 | 0.73 | (1.31 | ) | ||||||||||||||||||
Total from investment operations | 0.86 | 0.76 | (0.81 | ) | (0.43 | ) | 1.62 | 0.80 | (1.15 | ) | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.94 | ) | (0.21 | ) | (0.29 | ) | (0.11 | ) | (0.25 | ) | (0.22 | ) | ||||||||||||||
Net asset value at end of period | $ | 7.94 | $ | 7.21 | $ | 7.39 | $ | 8.41 | $ | 9.13 | $ | 7.62 | $ | 7.07 | ||||||||||||||
Total return | 11.93 | %(D) | 11.11 | % | (9.77 | )% | (4.72 | )% | 21.32 | % | 11.33 | %(D) | (13.47 | )% | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 3,467 | $ | 3,540 | $ | 4,583 | $ | 35,108 | $ | 43,794 | $ | 31,527 | $ | 123,607 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.09 | %(E) | 1.09 | % | 1.12 | % | 1.09 | % | 1.04 | % | 1.08 | %(E)(F) | 1.15 | %(F) | ||||||||||||||
Gross expenses | 2.31 | %(E) | 2.02 | % | 1.56 | % | 1.36 | % | 1.33 | % | 1.51 | %(E) | 1.43 | % | ||||||||||||||
Net investment income | 2.84 | %(E) | 2.41 | % | 2.02 | % | 2.19 | % | 2.65 | % | 1.49 | %(E) | 2.27 | % | ||||||||||||||
Portfolio turnover rate | 28 | %(D) | 23 | % | 38 | % | 26 | % | 31 | % | 133 | %(D) | 121 | % |
Touchstone International Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | Period Ended | |||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | ||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(G) | |||||||||||||||||||
Net asset value at beginning of period | $ | 7.15 | $ | 7.35 | $ | 8.42 | $ | 9.14 | $ | 7.62 | $ | 7.43 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.18 | (C) | 0.17 | (C) | 0.24 | 0.28 | 0.08 | (C) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.74 | 0.59 | (0.98 | ) | (0.66 | ) | 1.36 | 0.36 | ||||||||||||||||
Total from investment operations | 0.85 | 0.77 | (0.81 | ) | (0.42 | ) | 1.64 | 0.44 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.97 | ) | (0.26 | ) | (0.30 | ) | (0.12 | ) | (0.25 | ) | ||||||||||||
Net asset value at end of period | $ | 7.87 | $ | 7.15 | $ | 7.35 | $ | 8.42 | $ | 9.14 | $ | 7.62 | ||||||||||||
Total return | 11.95 | %(D) | 11.31 | % | (9.74 | )% | (4.66 | )% | 21.51 | % | 5.94 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 16,796 | $ | 14,753 | $ | 34,742 | $ | 72,607 | $ | 83,628 | $ | 88,931 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(E) | 0.99 | % | 0.99 | % | 0.99 | % | 0.97 | % | 0.96 | %(E) | ||||||||||||
Gross expenses | 1.74 | %(E) | 1.60 | % | 1.29 | % | 1.28 | % | 1.29 | % | 1.36 | %(E) | ||||||||||||
Net investment income | 2.94 | %(E) | 2.51 | % | 2.15 | % | 2.29 | % | 2.72 | % | 1.61 | %(E) | ||||||||||||
Portfolio turnover rate | 28 | %(D) | 23 | % | 38 | % | 26 | % | 31 | % | 133 | %(D) |
(A) | Effective September 10, 2012, Institutional Class shares were renamed Class Y shares. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Includes interest expense relating to settlement of foreign futures. Interest expense was less than 0.005% for the eight months ended March 31, 2013 and 0.02% for the year ended July 31, 2012. |
(G) | Represents the period from commencement of operations (September 10, 2012) through March 31, 2013. |
See accompanying Notes to Financial Statements.
58 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 25.91 | $ | 23.28 | $ | 27.06 | $ | 26.50 | $ | 23.61 | $ | 22.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (— | )(A) | (0.06 | ) | (0.10 | ) | (0.14 | ) | (0.10 | ) | (0.05 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.51 | 3.31 | (1.62 | ) | 4.19 | 5.74 | 2.71 | |||||||||||||||||
Total from investment operations | 2.51 | 3.25 | (1.72 | ) | 4.05 | 5.64 | 2.66 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (0.62 | ) | (2.06 | ) | (3.49 | ) | (2.75 | ) | (1.46 | ) | |||||||||||||
Net asset value at end of period | $ | 28.42 | $ | 25.91 | $ | 23.28 | $ | 27.06 | $ | 26.50 | $ | 23.61 | ||||||||||||
Total return(B) | 9.69 | %(C) | 14.13 | % | (6.34 | )% | 16.34 | % | 24.82 | % | 12.73 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 227,456 | $ | 225,381 | $ | 226,201 | $ | 267,421 | $ | 308,316 | $ | 299,834 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.30 | %(D) | 1.30 | % | 1.31 | % | 1.34 | % | 1.38 | % | 1.40 | % | ||||||||||||
Gross expenses | 1.30 | %(D) | 1.30 | % | 1.31 | % | 1.34 | % | 1.38 | % | 1.40 | % | ||||||||||||
Net investment Income (loss) | 0.03 | %(D) | (0.26 | )% | (0.42 | )% | (0.55 | )% | (0.41 | )% | (0.21 | )% | ||||||||||||
Portfolio turnover rate | 41 | %(C) | 95 | % | 92 | % | 73 | % | 79 | % | 70 | % |
Touchstone Mid Cap Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.84 | $ | 16.33 | $ | 19.78 | $ | 20.39 | $ | 18.84 | $ | 18.31 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.18 | ) | (0.22 | ) | (0.21 | ) | (0.24 | ) | (0.22 | ) | (0.18 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 1.83 | 2.35 | (1.18 | ) | 3.12 | 4.52 | 2.17 | |||||||||||||||||
Total from investment operations | 1.65 | 2.13 | (1.39 | ) | 2.88 | 4.30 | 1.99 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (0.62 | ) | (2.06 | ) | (3.49 | ) | (2.75 | ) | (1.46 | ) | |||||||||||||
Net asset value at end of period | $ | 19.49 | $ | 17.84 | $ | 16.33 | $ | 19.78 | $ | 20.39 | $ | 18.84 | ||||||||||||
Total return(B) | 9.25 | %(C) | 13.28 | % | (7.02 | )% | 15.51 | % | 23.90 | % | 11.90 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 93,577 | $ | 113,153 | $ | 127,852 | $ | 157,315 | $ | 149,927 | $ | 141,485 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.08 | %(D) | 2.06 | % | 2.06 | % | 2.07 | % | 2.11 | % | 2.15 | % | ||||||||||||
Gross expenses | 2.08 | %(D) | 2.06 | % | 2.06 | % | 2.07 | % | 2.11 | % | 2.15 | % | ||||||||||||
Net investment loss | (0.75 | )%(D) | (1.02 | )% | (1.17 | )% | (1.29 | )% | (1.14 | )% | (0.95 | )% | ||||||||||||
Portfolio turnover rate | 41 | %(C) | 95 | % | 92 | % | 73 | % | 79 | % | 70 | % |
(A) | Less than $(0.005) per share. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
59 |
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.70 | $ | 23.92 | $ | 27.71 | $ | 27.00 | $ | 23.93 | $ | 22.63 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | (— | )(A) | (0.04 | ) | (0.08 | ) | (0.05 | ) | 0.01 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.58 | 3.40 | (1.65 | ) | 4.28 | 5.87 | 2.75 | |||||||||||||||||
Total from investment operations | 2.62 | 3.40 | (1.69 | ) | 4.20 | 5.82 | 2.76 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.04 | ) | — | — | — | |||||||||||||||||
Realized capital gains | — | (0.62 | ) | (2.06 | ) | (3.49 | ) | (2.75 | ) | (1.46 | ) | |||||||||||||
Total distributions | — | (0.62 | ) | (2.10 | ) | (3.49 | ) | (2.75 | ) | (1.46 | ) | |||||||||||||
Net asset value at end of period | $ | 29.32 | $ | 26.70 | $ | 23.92 | $ | 27.71 | $ | 27.00 | $ | 23.93 | ||||||||||||
Total return | 9.81 | %(B) | 14.38 | % | (6.08 | )% | 16.69 | % | 25.17 | % | 13.05 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 350,107 | $ | 311,865 | $ | 347,706 | $ | 299,247 | $ | 263,578 | $ | 164,267 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.03 | %(C) | 1.06 | % | 1.05 | % | 1.07 | % | 1.07 | % | 1.16 | % | ||||||||||||
Gross expenses | 1.03 | %(C) | 1.06 | % | 1.05 | % | 1.07 | % | 1.07 | % | 1.16 | % | ||||||||||||
Net investment income (loss) | 0.30 | %(C) | (0.02 | )% | (0.16 | )% | (0.29 | )% | (0.11 | )% | 0.04 | % | ||||||||||||
Portfolio turnover rate | 41 | %(B) | 95 | % | 92 | % | 73 | % | 79 | % | 70 | % |
Touchstone Mid Cap Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 26.90 | $ | 24.07 | $ | 27.85 | $ | 27.10 | $ | 23.99 | $ | 22.65 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.10 | (0.02 | ) | (0.03 | ) | 0.03 | 0.04 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.61 | 3.35 | (1.65 | ) | 4.27 | 5.83 | 2.76 | |||||||||||||||||
Total from investment operations | 2.65 | 3.45 | (1.67 | ) | 4.24 | 5.86 | 2.80 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.05 | ) | — | — | — | |||||||||||||||||
Realized capital gains | — | (0.62 | ) | (2.06 | ) | (3.49 | ) | (2.75 | ) | (1.46 | ) | |||||||||||||
Total distributions | — | (0.62 | ) | (2.11 | ) | (3.49 | ) | (2.75 | ) | (1.46 | ) | |||||||||||||
Net asset value at end of period | $ | 29.55 | $ | 26.90 | $ | 24.07 | $ | 27.85 | $ | 27.10 | $ | 23.99 | ||||||||||||
Total return | 9.85 | %(B) | 14.50 | % | (5.97 | )% | 16.73 | % | 25.32 | % | 13.23 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 51,040 | $ | 44,236 | $ | 84,152 | $ | 102,420 | $ | 35,097 | $ | 38,821 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(C) | 0.99 | % | 0.95 | % | 0.98 | % | 0.97 | % | 0.98 | % | ||||||||||||
Gross expenses | 1.00 | %(C) | 1.00 | % | 0.95 | % | 0.98 | % | 0.97 | % | 0.98 | % | ||||||||||||
Net investment income (loss) | 0.34 | %(C) | 0.05 | % | (0.05 | )% | (0.20 | )% | 0.00 | %(D) | 0.21 | % | ||||||||||||
Portfolio turnover rate | 41 | %(B) | 95 | % | 92 | % | 73 | % | 79 | % | 70 | % |
(A) | Less than $(0.005) per share. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than 0.005%. |
See accompanying Notes to Financial Statements.
60 |
Financial Highlights (Continued)
Touchstone Sands Capital Emerging Markets Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
September 30, | Period Ended | |||||||||||||||
2017 | Year Ended March 31, | March 31, | ||||||||||||||
(Unaudited) | 2017 | 2016 | 2015(A) | |||||||||||||
Net asset value at beginning of period | $ | 10.70 | $ | 9.40 | $ | 10.37 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.01 | ) | (0.03 | ) | (0.04 | ) | (0.03 | ) | ||||||||
Net realized and unrealized gains (losses) on investments | 1.80 | 1.33 | (0.93 | ) | 0.40 | |||||||||||
Total from investment operations | 1.79 | 1.30 | (0.97 | ) | 0.37 | |||||||||||
Net asset value at end of period | $ | 12.49 | $ | 10.70 | $ | 9.40 | $ | 10.37 | ||||||||
Total return | 16.73 | %(B) | 13.83 | % | (9.35 | )% | 3.70 | %(B) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 152,286 | $ | 103,467 | $ | 58,106 | $ | 39,541 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.49 | %(C) | 1.49 | % | 1.49 | % | 1.49 | %(C) | ||||||||
Gross expenses | 1.49 | %(C) | 1.55 | % | 1.59 | % | 1.68 | %(C) | ||||||||
Net investment loss | (0.21 | )%(C) | (0.49 | )% | (0.52 | )% | (0.46 | )%(C) | ||||||||
Portfolio turnover rate | 18 | %(B) | 49 | % | 32 | % | 90 | %(B) |
Touchstone Sands Capital Emerging Markets Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
September 30, | Period Ended | |||||||||||||||
2017 | Year Ended March 31, | March 31, | ||||||||||||||
(Unaudited) | 2017 | 2016 | 2015(A) | |||||||||||||
Net asset value at beginning of period | $ | 10.73 | $ | 9.41 | $ | 10.37 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (— | )(D) | (0.03 | ) | (0.02 | ) | (0.03 | ) | ||||||||
Net realized and unrealized gains (losses) on investments | 1.79 | 1.35 | (0.94 | ) | 0.40 | |||||||||||
Total from investment operations | 1.79 | 1.32 | (0.96 | ) | 0.37 | |||||||||||
Net asset value at end of period | $ | 12.52 | $ | 10.73 | $ | 9.41 | $ | 10.37 | ||||||||
Total return | 16.68 | %(B) | 14.03 | % | (9.26 | )% | 3.70 | %(B) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 283,495 | $ | 182,402 | $ | 101,401 | $ | 32,743 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.39 | %(C) | 1.39 | % | 1.39 | % | 1.39 | %(C) | ||||||||
Gross expenses | 1.41 | %(C) | 1.46 | % | 1.51 | % | 1.59 | %(C) | ||||||||
Net investment loss | (0.11 | )%(C) | (0.39 | )% | (0.42 | )% | (0.36 | )%(C) | ||||||||
Portfolio turnover rate | 18 | %(B) | 49 | % | 32 | % | 90 | %(B) |
(A) | Represents the period from commencement of operations (May 12, 2014) through March 31, 2015. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
61 |
Financial Highlights (Continued)
Touchstone Small Cap Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 5.23 | $ | 4.98 | $ | 5.70 | $ | 5.24 | $ | 4.84 | $ | 4.25 | $ | 4.24 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.04 | ) | (0.04 | ) | (0.04 | ) | (0.01 | ) | — | (B)(C) | (— | )(B)(C) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.39 | 0.32 | (0.62 | ) | 0.63 | 1.02 | 0.85 | 0.01 | ||||||||||||||||||||
Total from investment operations | 0.33 | 0.28 | (0.66 | ) | 0.59 | 1.01 | 0.85 | 0.01 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.02 | ) | — | ||||||||||||||||||||
Realized capital gains | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.24 | ) | — | ||||||||||||||||
Total distributions | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.26 | ) | — | ||||||||||||||||
Net asset value at end of period | $ | 5.56 | $ | 5.23 | $ | 4.98 | $ | 5.70 | $ | 5.24 | $ | 4.84 | $ | 4.25 | ||||||||||||||
Total return(D) | 6.31 | %(E) | 5.51 | % | (11.68 | )% | 11.52 | % | 22.63 | % | 20.93 | %(E) | 0.24 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 22,171 | $ | 44,278 | $ | 48,650 | $ | 34,017 | $ | 35,303 | $ | 14,243 | $ | 15,010 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.44 | %(F) | 1.44 | % | 1.44 | % | 1.44 | % | 1.45 | % | 1.60 | %(F) | 1.60 | % | ||||||||||||||
Gross expenses | 1.68 | %(F) | 1.60 | % | 1.66 | % | 1.69 | % | 1.81 | % | 2.13 | %(F) | 2.01 | % | ||||||||||||||
Net investment income (loss) | (0.81 | )%(F) | (0.74 | )% | (0.94 | )% | (0.71 | )% | (0.48 | )% | 0.15 | %(F) | (0.07 | )% | ||||||||||||||
Portfolio turnover rate | 42 | %(E) | 58 | % | 36 | % | 46 | % | 195 | %(G) | 45 | %(E)(H) | 48 | % |
Touchstone Small Cap Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 4.31 | $ | 4.14 | $ | 4.78 | $ | 4.45 | $ | 4.22 | $ | 3.75 | $ | 3.77 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment loss | (0.09 | ) | (0.10 | ) | (0.07 | ) | (0.05 | ) | (0.04 | ) | (0.02 | )(C) | (0.03 | )(C) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.35 | 0.30 | (0.51 | ) | 0.51 | 0.88 | 0.74 | 0.01 | ||||||||||||||||||||
Total from investment operations | 0.26 | 0.20 | (0.58 | ) | 0.46 | 0.84 | 0.72 | (0.02 | ) | |||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.01 | ) | — | ||||||||||||||||||||
Realized capital gains | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.24 | ) | — | ||||||||||||||||
Total distributions | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.25 | ) | — | ||||||||||||||||
Net asset value at end of period | $ | 4.57 | $ | 4.31 | $ | 4.14 | $ | 4.78 | $ | 4.45 | $ | 4.22 | $ | 3.75 | ||||||||||||||
Total return(D) | 6.03 | %(E) | 4.70 | % | (12.26 | )% | 10.64 | % | 21.85 | % | 20.17 | %(E) | (0.53 | )% | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 9,265 | $ | 12,312 | $ | 18,237 | $ | 12,651 | $ | 7,429 | $ | 3,509 | $ | 3,830 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 2.19 | %(F) | 2.19 | % | 2.19 | % | 2.19 | % | 2.20 | % | 2.35 | %(F) | 2.35 | % | ||||||||||||||
Gross expenses | 2.61 | %(F) | 2.51 | % | 2.46 | % | 2.55 | % | 2.65 | % | 3.16 | %(F) | 2.76 | % | ||||||||||||||
Net investment loss | (1.56 | )%(F) | (1.49 | )% | (1.69 | )% | (1.46 | )% | (1.23 | )% | (0.60 | )%(F) | (0.82 | )% | ||||||||||||||
Portfolio turnover rate | 42 | %(E) | 58 | % | 36 | % | 46 | % | 195 | %(G) | 45 | %(E)(H) | 48 | % |
(A) | The Fund changed its fiscal year end from July 31 to March 31. |
(B) | Less than $0.005 per share. |
(C) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund acquired on August 23, 2013. If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
See accompanying Notes to Financial Statements.
62 |
Financial Highlights (Continued)
Touchstone Small Cap Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||
September | Eight Months | |||||||||||||||||||||||||||
30, | Ended | Year Ended | ||||||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | July 31, | |||||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(A)(B) | 2012 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 5.84 | $ | 5.55 | $ | 6.33 | $ | 5.78 | $ | 5.27 | $ | 4.61 | $ | 4.58 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.01 | ) | (0.01 | ) | 0.01 | (C) | 0.01 | (C) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.40 | 0.35 | (0.69 | ) | 0.69 | 1.13 | 0.92 | 0.02 | ||||||||||||||||||||
Total from investment operations | 0.38 | 0.32 | (0.72 | ) | 0.68 | 1.12 | 0.93 | 0.03 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.03 | ) | — | ||||||||||||||||||||
Realized capital gains | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.24 | ) | — | ||||||||||||||||
Total distributions | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.27 | ) | — | ||||||||||||||||
Net asset value at end of period | $ | 6.22 | $ | 5.84 | $ | 5.55 | $ | 6.33 | $ | 5.78 | $ | 5.27 | $ | 4.61 | ||||||||||||||
Total return | 6.51 | %(E) | 5.67 | % | (11.46 | )% | 12.01 | % | 22.88 | % | 20.94 | %(E) | 0.66 | % | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 256,411 | $ | 357,216 | $ | 508,450 | $ | 314,062 | $ | 37,030 | $ | 18,123 | $ | 23,232 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 1.19 | %(F) | 1.19 | % | 1.19 | % | 1.19 | % | 1.20 | % | 1.35 | %(F) | 1.35 | % | ||||||||||||||
Gross expenses | 1.36 | %(F) | 1.34 | % | 1.31 | % | 1.36 | % | 1.50 | % | 1.77 | %(F) | 1.76 | % | ||||||||||||||
Net investment income (loss) | (0.56 | )%(F) | (0.49 | )% | (0.69 | )% | (0.46 | )% | (0.23 | )% | 0.40 | %(F) | 0.17 | % | ||||||||||||||
Portfolio turnover rate | 42 | %(E) | 58 | % | 36 | % | 46 | % | 195 | %(G) | 45 | %(E)(H) | 48 | % |
Touchstone Small Cap Growth Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | Period Ended | |||||||||||||||||||||||
2017 | Year Ended March 31, | March 31, | ||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013(I) | |||||||||||||||||||
Net asset value at beginning of period | $ | 5.89 | $ | 5.58 | $ | 6.35 | $ | 5.80 | $ | 5.28 | $ | 4.92 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.03 | ) | (0.03 | ) | (0.02 | ) | (— | )(D) | 0.02 | (C) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.39 | 0.37 | (0.68 | ) | 0.70 | 1.13 | 0.61 | |||||||||||||||||
Total from investment operations | 0.38 | 0.34 | (0.71 | ) | 0.68 | 1.13 | 0.63 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | — | (0.03 | ) | |||||||||||||||||
Realized capital gains | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.24 | ) | |||||||||||||
Total distributions | — | (0.03 | ) | (0.06 | ) | (0.13 | ) | (0.61 | ) | (0.27 | ) | |||||||||||||
Net asset value at end of period | $ | 6.27 | $ | 5.89 | $ | 5.58 | $ | 6.35 | $ | 5.80 | $ | 5.28 | ||||||||||||
Total return | 6.45 | %(E) | 6.00 | % | (11.27 | )% | 11.97 | % | 23.04 | % | 13.56 | %(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 17,606 | $ | 15,558 | $ | 22,863 | $ | 12,285 | $ | 12,372 | $ | 3 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.04 | %(F) | 1.04 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.25 | %(F) | ||||||||||||
Gross expenses | 1.31 | %(F) | 1.24 | % | 1.23 | % | 1.31 | % | 1.40 | % | 945.43 | %(F) | ||||||||||||
Net investment income (loss) | (0.41 | )%(F) | (0.35 | )% | (0.54 | )% | (0.32 | )% | (0.07 | )% | 0.50 | %(F) | ||||||||||||
Portfolio turnover rate | 42 | %(E) | 58 | % | 36 | % | 46 | % | 195 | %(G) | 45 | %(E)(H) |
(A) | Effective September 10, 2012, Institutional Class shares were renamed Class Y shares. |
(B) | The Fund changed its fiscal year end from July 31 to March 31. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Less than $0.005 per share. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund acquired on August 23, 2013. If these transactions were included, portfolio turnover would have been higher. |
(H) | Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind. |
(I) | Represents the period from commencement of operations (September 10, 2012) through March 31, 2013. |
See accompanying Notes to Financial Statements.
63 |
Financial Highlights (Continued)
Touchstone Sustainability and Impact Equity Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 21.52 | $ | 18.98 | $ | 30.96 | $ | 31.81 | $ | 28.74 | $ | 27.74 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.18 | 0.06 | (A) | 0.11 | 0.02 | 0.11 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.40 | 2.47 | (1.99 | ) | 4.87 | 5.96 | 1.00 | |||||||||||||||||
Total from investment operations | 2.51 | 2.65 | (1.93 | ) | 4.98 | 5.98 | 1.11 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.11 | ) | (0.03 | ) | (0.05 | ) | (0.05 | ) | (0.11 | ) | |||||||||||||
Realized capital gains | — | — | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | |||||||||||||||
Total distributions | — | (0.11 | ) | (10.05 | ) | (5.83 | ) | (2.91 | ) | (0.11 | ) | |||||||||||||
Net asset value at end of period | $ | 24.03 | $ | 21.52 | $ | 18.98 | $ | 30.96 | $ | 31.81 | $ | 28.74 | ||||||||||||
Total return(B) | 11.66 | %(C) | 14.01 | % | (8.73 | )% | 17.17 | % | 21.27 | % | 4.05 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 128,756 | $ | 113,062 | $ | 137,306 | $ | 257,273 | $ | 287,813 | $ | 286,572 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(D) | 1.24 | % | 1.24 | % | 1.25 | % | 1.23 | % | 1.22 | % | ||||||||||||
Gross expenses | 1.34 | %(D) | 1.36 | % | 1.39 | % | 1.28 | % | 1.29 | % | 1.32 | % | ||||||||||||
Net investment income | 0.95 | %(D) | 0.83 | % | 0.31 | % | 0.35 | % | 0.06 | % | 0.47 | % | ||||||||||||
Portfolio turnover rate | 11 | %(C) | 53 | % | 304 | % | 98 | % | 92 | % | 109 | %(E) |
Touchstone Sustainability and Impact Equity Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 18.62 | $ | 16.47 | $ | 28.32 | $ | 29.72 | $ | 27.17 | $ | 26.31 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.02 | 0.01 | (0.08 | )(A) | (0.12 | ) | (0.21 | ) | (0.08 | ) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.08 | 2.15 | (1.75 | ) | 4.50 | 5.62 | 0.94 | |||||||||||||||||
Total from investment operations | 2.10 | 2.16 | (1.83 | ) | 4.38 | 5.41 | 0.86 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net Investment Income | — | (0.01 | ) | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 20.72 | $ | 18.62 | $ | 16.47 | $ | 28.32 | $ | 29.72 | $ | 27.17 | ||||||||||||
Total return(B) | 11.28 | %(C) | 13.12 | % | (9.41 | )% | 16.30 | % | 20.35 | % | 3.27 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 41,158 | $ | 48,055 | $ | 56,435 | $ | 103,861 | $ | 111,631 | $ | 107,572 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(D) | 1.99 | % | 1.99 | % | 2.00 | % | 1.98 | % | 1.97 | % | ||||||||||||
Gross expenses | 2.12 | %(D) | 2.12 | % | 2.15 | % | 2.03 | % | 2.04 | % | 2.08 | % | ||||||||||||
Net investment income (loss) | 0.20 | %(D) | 0.08 | % | (0.44 | )% | (0.40 | )% | (0.69 | )% | (0.28 | )% | ||||||||||||
Portfolio turnover rate | 11 | %(C) | 53 | % | 304 | % | 98 | % | 92 | % | 109 | %(E) |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of the Fifth Third Quality Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
64 |
Financial Highlights (Continued)
Touchstone Sustainability and Impact Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
September | ||||||||||||||||||||||||
30, | ||||||||||||||||||||||||
2017 | Year Ended March 31, | |||||||||||||||||||||||
(Unaudited) | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Net asset value at beginning of period | $ | 22.11 | $ | 19.49 | $ | 31.49 | $ | 32.23 | $ | 29.07 | $ | 28.09 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.20 | 0.13 | (A) | 0.22 | 0.09 | 0.18 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 2.48 | 2.58 | (2.06 | ) | 5 | 6.06 | 1.00 | |||||||||||||||||
Total from investment operations | 2.61 | 2.78 | (1.93 | ) | 5.14 | 6.15 | 1.18 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.16 | ) | (0.05 | ) | (0.10 | ) | (0.13 | ) | (0.20 | ) | |||||||||||||
Realized capital gains | — | — | (10.02 | ) | (5.78 | ) | (2.86 | ) | — | |||||||||||||||
Total distributions | — | (0.16 | ) | (10.07 | ) | (5.88 | ) | (2.99 | ) | (0.20 | ) | |||||||||||||
Net asset value at end of period | $ | 24.72 | $ | 22.11 | $ | 19.49 | $ | 31.49 | $ | 32.23 | $ | 29.07 | ||||||||||||
Total return | 11.80 | %(B) | 14.30 | % | (8.54 | )% | 17.48 | % | 21.62 | % | 4.32 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 146,972 | $ | 112,790 | $ | 67,638 | $ | 416,741 | $ | 577,708 | $ | 523,413 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(C) | 0.99 | % | 0.99 | % | 0.99 | % | 0.97 | % | 0.96 | % | ||||||||||||
Gross expenses | 1.04 | %(C) | 1.09 | % | 1.14 | % | 1.00 | % | 1.05 | % | 1.08 | % | ||||||||||||
Net investment income | 1.20 | %(C) | 1.08 | % | 0.56 | % | 0.61 | % | 0.32 | % | 0.72 | % | ||||||||||||
Portfolio turnover rate | 11 | %(B) | 53 | % | 304 | % | 98 | % | 92 | % | 109 | %(D) |
Touchstone Sustainability and Impact Equity Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||
Ended | ||||||||||||
September 30, | Year Ended | Period Ended | ||||||||||
2017 | March 31, | March 31, | ||||||||||
(Unaudited) | 2017 | 2016(E) | ||||||||||
Net asset value at beginning of period | $ | 22.13 | $ | 19.50 | $ | 31.44 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net Investment income | 0.14 | 0.19 | 0.11 | (A) | ||||||||
Net realized and unrealized gains (losses) on investments | 2.48 | 2.61 | (1.98 | ) | ||||||||
Total from investment operations | 2.62 | 2.80 | (1.87 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | — | (0.17 | ) | (0.05 | ) | |||||||
Realized capital gains | — | — | (10.02 | ) | ||||||||
Total distributions | — | (0.17 | ) | (10.07 | ) | |||||||
Net asset value at end of period | $ | 24.75 | $ | 22.13 | $ | 19.50 | ||||||
Total return | 11.84 | %(B) | 14.41 | % | (8.49 | )%(B) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 39,008 | $ | 29,679 | $ | 6,843 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses | 0.89 | %(C) | 0.89 | % | 0.89 | %(C) | ||||||
Gross expenses | 1.05 | %(C) | 1.11 | % | 1.48 | %(C) | ||||||
Net investment income | 1.30 | %(C) | 1.18 | % | 0.66 | %(C) | ||||||
Portfolio turnover rate | 11 | %(B) | 53 | % | 304 | % |
(A) | The net investment income per share is based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of the Fifth Third Quality Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher. |
(E) | Represents the period from commencement of operations (May 4, 2015) through March 31, 2016. |
See accompanying Notes to Financial Statements.
65 |
September 30, 2017 (Unaudited)
1. Organization
The Touchstone Strategic Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated November 18, 1982. The Trust consists of twenty one funds, including the following nine funds (individually, a “Fund”, and collectively, the “Funds”):
Touchstone Flexible Income Fund (“Flexible Income Fund”)
Touchstone Focused Fund (“Focused Fund”)
Touchstone Growth Opportunities Fund (“Growth Opportunities Fund”)
Touchstone International Growth Fund (“International Growth Fund”)
Touchstone International Value Fund (“International Value Fund”)
Touchstone Mid Cap Growth Fund (“Mid Cap Growth Fund”)
Touchstone Sands Capital Emerging Markets Growth Fund (“Sands Capital Emerging Markets Growth Fund”)
Touchstone Small Cap Growth Fund (“Small Cap Growth Fund”)
Touchstone Sustainability and Impact Equity Fund (“Sustainability and Impact Equity Fund”)
Each Fund is diversified, with the exception of the Focused Fund, the Growth Opportunities Fund and the Sands Capital Emerging Markets Growth Fund, which are non-diversified.
The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
Class A | Class C | Class Y | Institutional Class | |
Flexible Income Fund | X | X | X | X |
Focused Fund | X | X | X | X |
Growth Opportunities Fund | X | X | X | X |
International Growth Fund | X | X | X | X |
International Value Fund | X | X | X | X |
Mid Cap Growth Fund | X | X | X | X |
Sands Capital Emerging Markets Growth Fund | — | — | X | X |
Small Cap Growth Fund | X | X | X | X |
Sustainability and Impact Equity Fund | X | X | X | X |
The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment goals, policies, and strategies along with information on the classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements — U.S. generally accepted accounting principles (“U.S. GAAP”) define fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their 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 |
66 |
Notes to Financial Statements (Unaudited) (Continued)
• | Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – | significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The aggregate value by input level, as of September 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 each Fund’s Portfolio of Investments, which also includes a breakdown of the Fund’s investments by geographic, portfolio or sector allocation. The Funds did not hold any Level 3 categorized securities during the six months ended September 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 September 30, 2017, there were no transfers between Levels 1, 2 and 3 for all Funds, except as discussed in the Portfolio of Investments for the International Value Fund, Sands Capital Emerging Markets Growth Fund and Sustainability and Impact Equity Fund.
During the six months ended September 30, 2017, there were no material 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 (“Underlying Funds”) and are categorized in Level 1.
Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. Debt securities with remaining maturities of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which fair value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of regular trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available and categorized in Level 2.
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
67 |
Notes to Financial Statements (Unaudited) (Continued)
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 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 Funds’ pricing time but after the close of the primary markets on which the security is traded. |
• | If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. |
• | If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading. |
• | If the validity of market quotations is not reliable. |
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Funds’ Board of Trustees (the “Board”) and are generally categorized in Level 3.
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.
Securities sold short — The Flexible Income Fund may engage 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 the Fund replaces the borrowed security. The Fund would realize a gain if the price of the security declines between those dates. As of September 30, 2017, the Flexible Income Fund did not hold any securities sold short.
Options — The Flexible Income Fund may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Fund intends to purchase), against fluctuations in fair value caused by changes in prevailing market interest rates or foreign currency exchange rates and against changes in overall equity market volatility. In addition, the Fund may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Fund’s option strategy primarily focuses on the use of writing 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
68 |
Notes to Financial Statements (Unaudited) (Continued)
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 September 30, 2017, the Flexible Income Fund did not hold any options.
Futures Contracts — The Flexible Income Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund’s exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund’s return. In order to avoid leveraging and related risks, when the Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, in a segregated account with its custodian or otherwise “cover” its position in a manner consistent with the 1940 Act, or the rules of the Securities and Exchange Commission (the “SEC”) or interpretations thereunder. Collateral equal to the current market value of the futures position will be marked to market on a daily basis.
When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. As of September 30, 2017, the Flexible Income Fund held futures contracts as shown in the Portfolio of Investments and had cash in the amount of $2,321,603 held as collateral for futures contracts.
Swap Contracts — The Flexible Income Fund may enter into swap transactions to help enhance the value of its portfolio or manage its exposure to different types of investments. Swaps are financial instruments that typically involve the exchange of cash flows between two parties on specified dates (settlement dates), where the cash flows are based on agreed-upon prices, rates, indexes, etc. The nominal amount on which the cash flows are calculated is called the notional amount. Swaps are individually negotiated and structured to include exposure to a variety of different types of investments or market factors, such as interest rates, foreign currency rates, mortgage securities, corporate borrowing rates, security prices, indexes or inflation rates.
Swap agreements may increase or decrease the overall volatility of the investments of the Fund and its share price. The performance of swap agreements may be affected by a change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from the Fund. If a swap agreement calls for payments by the Fund, the Fund must be prepared to make such payments when due. In addition, if the
69 |
Notes to Financial Statements (Unaudited) (Continued)
counterparty’s creditworthiness declines, the value of a swap agreement would be likely to decline, potentially resulting in losses.
Generally, bilateral swap agreements, OTC swaps, have a fixed maturity date that will be agreed upon by the parties. The agreement can be terminated before the maturity date only under limited circumstances, such as default by one of the parties or insolvency, among others, and can be transferred by a party only with the prior written consent of the other party. The Fund may be able to eliminate its exposure under a swap agreement either by assignment or by other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. If the counterparty is unable to meet its obligations under the contract, declares bankruptcy, defaults or becomes insolvent, the Fund may not be able to recover the money it expected to receive under the contract.
Cleared swaps are transacted through futures commission merchants that are members of central clearinghouses with the clearinghouses serving as a central counterparty. Pursuant to rules promulgated under the Dodd-Frank Act, central clearing of swap agreements is currently required for certain market participants trading certain instruments, and central clearing for additional instruments is expected to be implemented by regulators until the majority of the swaps market is ultimately subject to central clearing.
Swaps are marked-to-market daily based upon values received from third party vendors or quotations from market makers. For OTC swaps, any upfront premiums paid or received are recorded as assets or liabilities, respectively, and are shown as premium paid on swap agreements or premium received on swap agreements in the Statements of Assets and Liabilities. For swaps that are centrally cleared, initial margins, determined by each relevant clearing agency, are posted and segregated at a broker account registered with the Commodity Futures Trading Commission (“CFTC”), or the applicable regulator. The change in value of swaps, including accruals of periodic amounts of interest to be paid or received on swaps, is recorded as unrealized appreciation or depreciation. Daily changes in the value of centrally cleared swaps are recorded on the Statements of Assets and Liabilities as receivable or payable for variation margin on swap agreements and settled daily. Upfront premiums and liquidation payments received or paid are recorded as realized gains or losses at the termination or maturity of the swap. Net periodic payments received or paid by the Fund are recorded as realized gain or loss.
A swap agreement can be a form of leverage, which can magnify the Fund’s gains or losses. In order to reduce the risk associated with leveraging, the Fund may cover its current obligations under swap agreements according to guidelines established by the SEC. If the Fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the Fund’s accrued obligations under the swap agreement over the accrued amount the Fund is entitled to receive under the agreement. If the Fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the Fund’s accrued obligations under the agreement.
As of September 30, 2017, the Flexible Income Fund did not hold any swap contracts.
Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
(1) | market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and |
(2) | purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. |
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
70 |
Notes to Financial Statements (Unaudited) (Continued)
Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing a Fund’s total return, and the potential for losses in excess of a Fund’s initial investment.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.
During the six months ended September 30, 2017, the Flexible Income Fund used forward foreign currency contracts to enhance potential gains, hedge against anticipated currency exchange rates, maintain diversity and liquidity of the portfolio and/or adjust exposure to foreign currencies. As of September 30, 2017, there were no open forward foreign currency contracts.
Real Estate Investment Trusts — The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Derivative instruments and hedging activities — The Flexible Income Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs 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 Statement
71 |
Notes to Financial Statements (Unaudited) (Continued)
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 Flexible Income Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
As of September 30, 2017, the Flexible Income Fund’s assets and liabilities that were subject to a MNA on a gross basis were as follows:
Assets | Liabilities | |||||||
Flexible Income Fund | ||||||||
Futures Contracts | $ | 336,049 | $ | (162,023 | ) |
The following table presents the Flexible Income Fund’s assets net of amounts available for offset under a MNA and net of the related collateral pledged to the Fund as of September 30, 2017:
Gross Amount | ||||||||||||||||||||||
of | Gross Amount Available | Non-Cash | Cash | |||||||||||||||||||
Derivative | Recognized | for Offset in Statement of | Collateral | Collateral | Net | |||||||||||||||||
Counterparty | Type | Assets | Assets and Liabilities | Received | Received | Amount(A) | ||||||||||||||||
Wells Fargo | Futures Contracts | $ | 336,049 | $ | (162,023 | ) | $ | — | $ | 174,026 | $ | — |
(A) | Net amount represents the net amount receivable from the counterparty in the event of default. |
The following table presents the Flexible Income Fund’s liabilities net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of September 30, 2017:
Gross | ||||||||||||||||||||||
Amount | ||||||||||||||||||||||
of | Gross Amount Available | Non-Cash | Cash | |||||||||||||||||||
Derivative | Recognized | for Offset in Statement of | Collateral | Collateral | Net | |||||||||||||||||
Counterparty | Type | Liabilities | Assets and Liabilities | Pledged | Pledged | Amount(A) | ||||||||||||||||
Wells Fargo | Futures Contracts | $ | 162,023 | $ | (162,023 | ) | $ | — | $ | — | $ | — |
(A) | 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 Flexible Income Fund’s derivative financial instruments by primary risk exposure as of September 30, 2017:
Fair Value of Derivative Investments | ||||||||||
As of September 30, 2017 | ||||||||||
Derivatives not accounted for as hedging | Asset | Liability | ||||||||
Fund | instruments under ASC 815 | Derivatives | Derivatives | |||||||
Flexible Income Fund | Futures - Interest Rate Contracts* | $ | 336,049 | $ | — | |||||
Futures - Equity Contracts* | — | 162,023 |
* Statements of Assets and Liabilities Location: Payable/Receivable for variation margin on futures contracts.
72 |
Notes to Financial Statements (Unaudited) (Continued)
The following table sets forth the effect of the Flexible Income Fund’s derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended September 30, 2017:
The Effect of Derivative Investments on the Statement of Operations | ||||||||||
for the Six Months Ended September 30, 2017 | ||||||||||
Change in | ||||||||||
Unrealized | ||||||||||
Realized Gain | Appreciation | |||||||||
Derivatives not accounted for as hedging | (Loss) | (Depreciation) | ||||||||
Fund | instruments under ASC 815 | on Derivatives | on Derivatives | |||||||
Flexible Income Fund | Purchased Options - Equity Contracts* | $ | (276,256 | ) | $ | (82,466 | ) | |||
Written Options - Equity Contracts** | 194,741 | (54,435 | ) | |||||||
Written Options - Foreign Currency Contracts*** | 140,755 | (44,872 | ) | |||||||
Forward - Foreign Currency Contracts*** | (191,033 | ) | 93,426 | |||||||
Futures - Equity Contracts**** | (377,486 | ) | 310,345 | |||||||
Futures - Interest Rate Conracts**** | (457,356 | ) | (240,305 | ) |
* Statements of Operations Location: Net realized gains (losses) on investments and net change in unrealized appreciation (depreciation) on investments, respectively.
**Statements of Operations Location: Net realized gains on written options and net change in unrealized appreciation (depreciation) on written options, respectively.
*** Statements of Operations Location: Net realized losses on forward foreign currency contracts and net change in unrealized appreciation (depreciation) on forward foreign currency contracts, respectively.
**** Statements of Operations Location: Net realized losses on futures contracts and net change in unrealized appreciation (depreciation) on futures contracts, respectively.
For the six months ended September 30, 2017, the average quarterly balance of outstanding derivative financial instruments for the Flexible Income Fund was as follows:
Flexible | ||||
Income | ||||
Fund | ||||
Equity contracts: | ||||
Purchased Options - Cost | $ | 104,042 | ||
Written Options - Premiums received | $ | 32,957 | ||
Futures - Average notional value | $ | 2,061,505 | ||
Interest rate contracts: | ||||
Futures - Average notional value | $ | 44,460,456 | ||
Foreign currency exchange contracts: | ||||
Written Options - Premiums received | $ | 28,606 | ||
Forward foreign currency contracts: | ||||
Average U.S. dollar amount delivered | $ | 2,295,963 | ||
Average U.S. dollar amount received | $ | 2,264,821 |
Portfolio securities loaned — The Funds may lend their portfolio securities. Lending portfolio securities exposes the Funds to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved short-term investment vehicle. The approved short-term investment vehicle is subject to market risk.
73 |
Notes to Financial Statements (Unaudited) (Continued)
As of September 30, 2017, the following Funds loaned securities and received collateral as follows:
Market | ||||||||||||||
Value of | Market Value | |||||||||||||
Securities | of Collateral | Net | ||||||||||||
Fund | Security Type | Loaned* | Received** | Amount*** | ||||||||||
Flexible Income Fund | Corporate Bonds | $ | 10,654,256 | $ | 10,955,680 | $ | 301,424 | |||||||
Common Stocks | 2,861,917 | 2,917,810 | 55,893 | |||||||||||
Preferred Stocks | 126,894 | 127,290 | 396 | |||||||||||
Total Flexible Income Fund | 13,643,067 | 14,000,780 | 357,713 | |||||||||||
Focused Fund | Common Stocks | 21,335,219 | 21,940,191 | 604,972 | ||||||||||
Growth Opportunities Fund | Common Stock | 354,551 | 378,527 | 23,976 | ||||||||||
International Growth Fund | Common Stocks | 403,206 | 410,793 | 7,587 | ||||||||||
International Value Fund | Common Stocks | 376,640 | 392,719 | 16,079 | ||||||||||
Mid Cap Growth Fund | Common Stocks | 2,394,124 | 2,424,150 | 30,026 | ||||||||||
Sands Capital Emerging Markets Growth Fund | Common Stocks | 10,234,799 | 10,412,256 | 177,457 | ||||||||||
Small Cap Growth Fund | Common Stocks | 7,379,978 | 7,561,187 | 181,209 |
* The remaining contractual maturity is overnight for all securities.
** Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities.
*** Net amount represents the net amount payable due to the borrower in the event of default.
All cash collateral is received, held, and administered by the Funds’ custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral.
Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on trading volumes, float, short-term interest rates and market liquidity and is shown net of fees on the Statements of Operations. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.
Share valuation — The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the Funds is equal to the NAV per share plus a sales load equal to 6.10% of the NAV (or 5.75% of the offering price). There is no sales load on purchases of $1 million or more of Class A shares. The maximum offering price per share of Classes 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.
74 |
Notes to Financial Statements (Unaudited) (Continued)
Investment income — Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issues discount (“OID”) and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.
Distributions to shareholders — Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. Each Fund, except for the Flexible Income Fund and the International Value Fund declares and distributes net investment income, if any, annually, as a dividend to shareholders. The Flexible Income Fund declares and distributes net investment income, if any, monthly, as a dividend to shareholders. The International Value Fund declares and distributes 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 the 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.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended September 30, 2017:
Flexible | Growth | |||||||||||
Income | Focused | Opportunities | ||||||||||
Fund | Fund* | Fund | ||||||||||
Purchases of investment securities | $ | 244,926,517 | $ | 49,372,965 | $ | 106,637,853 | ||||||
Proceeds from sales and maturities | $ | 210,532,474 | $ | 338,977,799 | $ | 103,974,865 |
75 |
Notes to Financial Statements (Unaudited) (Continued)
International | International | Mid Cap | ||||||||||
Growth | Value | Growth | ||||||||||
Fund | Fund | Fund | ||||||||||
Purchases of investment securities | $ | 5,994,688 | $ | 6,063,109 | $ | 281,367,422 | ||||||
Proceeds from sales and maturities | $ | 3,669,366 | $ | 6,294,176 | $ | 321,677,663 |
Sands Capital | ||||||||||||
Emerging | Sustainability | |||||||||||
Markets | Small Cap | and Impact | ||||||||||
Growth | Growth | Equity | ||||||||||
Fund | Fund | Fund | ||||||||||
Purchases of investment securities | $ | 149,998,299 | $ | 145,996,424 | $ | 54,993,479 | ||||||
Proceeds from sales and maturities | $ | 63,598,928 | $ | 271,962,485 | $ | 35,477,556 |
* Touchstone Focused Fund had a redemption-in-kind on April 07, 2017, which resulted in a redemption out of the Fund of $196,427,222 and is excluded from the proceeds from sales and maturities. The redemption was comprised of securities and cash in the amount of $196,424,472 and $2,750, respectively.
For the six months ended September 30, 2017, purchases and proceeds from sales and maturities in U.S. Government securities were $152,598,333 and $132,245,246, respectively, for the Flexible Income Fund.
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. (“Western & Southern”).
On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $70,551 for the six months ended September 30, 2017.
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under the terms of an advisory agreement (“Advisory Agreement”). Under the Advisory Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.
Flexible Income Fund | 0.70% on the first $500 million |
0.60% on such assets in excess of $500 million | |
Focused Fund | 0.70% on the first $100 million |
0.65% on the next $400 million | |
0.60% on such assets in excess of $500 million | |
Growth Opportunities Fund | 0.75% on the first $500 million |
0.70% on the next $500 million | |
0.65% on such assets in excess of $1 billion |
76 |
Notes to Financial Statements (Unaudited) (Continued)
International Growth Fund | 0.90% on the first $500 million |
0.85% on the next $1 billion | |
0.80% on such assets in excess of $1.5 billion | |
International Value Fund | 1.00% |
Mid Cap Growth Fund | 0.75% on the first $500 million |
0.70% on the next $500 million | |
0.65% on such assets in excess of $1 billion | |
Sands Capital Emerging Markets Growth Fund | 1.15% |
Small Cap Growth Fund | 1.00% on the first $300 million |
0.95% on such assets in excess of $300 million | |
Sustainability and Impact Equity Fund | 0.75% on the first $200 million |
0.70% on the next $800 million | |
0.65% on such assets in excess of $1 billion |
The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):
Barrow, Hanley, Mewhinney & Strauss, LLC | Rockefeller & Co., Inc. |
International Value Fund | Sustainability and Impact Equity Fund |
ClearArc Capital, Inc. | Sands Capital Management, LLC |
Flexible Income Fund | Sands Capital Emerging Markets Growth Fund |
Fiera Capital Inc.* | Westfield Capital Management Company, L.P. |
International Growth Fund | Growth Opportunities Fund |
Small Cap Growth Fund | Mid Cap Growth Fund |
Fort Washington Investment Advisors, Inc.** | |
Focused Fund |
*Formerly known as Apex Capital Management.
**Affiliate of the Advisor and wholly-owned subsidiary of Western & Southern.
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 transaction 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 | ||||||||||||||||
Class A | Class C | Class Y | Class | |||||||||||||
Flexible Income Fund | 1.09 | % | 1.84 | % | 0.84 | % | 0.74 | % | ||||||||
Focused Fund | 1.20 | % | 1.95 | % | 0.95 | % | 0.83 | % | ||||||||
Growth Opportunities Fund | 1.24 | % | 1.99 | % | 0.99 | % | 0.89 | % | ||||||||
International Growth Fund | 1.32 | % | 2.07 | % | 1.07 | % | 0.97 | % | ||||||||
International Value Fund | 1.34 | % | 2.09 | % | 1.09 | % | 0.99 | % | ||||||||
Mid Cap Growth Fund | 1.39 | % | 2.14 | % | 1.14 | % | 0.99 | % | ||||||||
Sands Capital Emerging Markets Growth Fund | — | — | 1.49 | % | 1.39 | % | ||||||||||
Small Cap Growth Fund | 1.44 | % | 2.19 | % | 1.19 | % | 1.04 | % |
77 |
Notes to Financial Statements (Unaudited) (Continued)
Institutional | ||||||||||||||||
Class A | Class C | Class Y | Class | |||||||||||||
Sustainability and Impact Equity Fund | 1.24 | % | 1.99 | % | 0.99 | % | 0.89 | % |
These expense limitations will remain in effect for all Funds through at least July 29, 2018, but can be terminated by a vote of the Funds’ Board if it deems the termination to be beneficial to the Fund’s shareholders.
During the six months ended September 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:
Investment | Other Operating | |||||||||||||||
Advisory | Expenses | |||||||||||||||
Fees | Administration | Reimbursed/ | ||||||||||||||
Fund | Waived | Fees Waived | Waived | Total | ||||||||||||
Flexible Income Fund | $ | — | $ | 371,194 | $ | 114,296 | $ | 485,490 | ||||||||
Focused Fund | — | — | 101,802 | 101,802 | ||||||||||||
Growth Opportunities Fund | — | 57,014 | 102,102 | 159,116 | ||||||||||||
International Growth Fund | 27,736 | 9,924 | 16,111 | 53,771 | ||||||||||||
International Value Fund | 59,374 | 16,365 | 34,578 | 110,317 | ||||||||||||
Mid Cap Growth Fund | — | — | 2,019 | 2,019 | ||||||||||||
Sands Capital Emerging Markets Growth Fund | — | — | 30,914 | 30,914 | ||||||||||||
Small Cap Growth Fund | — | 227,254 | 114,276 | 341,530 | ||||||||||||
Sustainability and Impact Equity Fund | — | 65,164 | 89,132 | 154,296 |
Under the terms of the Expense Limitation Agreement the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation or assumed expenses for the Funds. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount in effect at the time of waiver or reimbursement. As of September 30, 2017, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:
Expiration | Expiration | Expiration | Expiration | |||||||||||||||||
March 31, | March 31, | March 31, | March 31, | |||||||||||||||||
Fund | 2018 | 2019 | 2020 | 2021 | Total | |||||||||||||||
Flexible Income Fund | $ | 506,352 | $ | 775,043 | $ | 988,671 | $ | 457,658 | $ | 2,727,724 | ||||||||||
Focused Fund | 502,116 | 178,123 | 23,692 | 12,820 | 716,751 | |||||||||||||||
Growth Opportunities Fund | 223,185 | 227,669 | 262,643 | 127,765 | 841,262 | |||||||||||||||
International Growth Fund | — | — | 109,155 | 53,684 | 162,839 | |||||||||||||||
International Value Fund | 357,335 | 327,638 | 205,902 | 104,646 | 995,521 | |||||||||||||||
Mid Cap Growth Fund | — | — | 3,217 | 2,019 | 5,236 | |||||||||||||||
Sands Capital Emerging Markets Growth Fund | 119,351 | 105,154 | 148,454 | 30,914 | 403,873 | |||||||||||||||
Small Cap Growth Fund | 313,619 | 583,974 | 732,807 | 309,112 | 1,939,512 | |||||||||||||||
Sustainability and Impact Equity Fund | 65,536 | 358,635 | 218,763 | 95,376 | 738,310 |
The Advisor did not recoup any amounts it previously waived or reimbursed during the six months ended September 30, 2017.
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:
78 |
Notes to Financial Statements (Unaudited) (Continued)
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 theTrust. 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 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 affiliates during the six months ended September 30, 2017:
Fund | Amount | |||
Flexible Income Fund | $ | 9,120 | ||
Focused Fund | 20,374 | |||
Growth Opportunities Fund | 2,778 | |||
International Growth Fund | 262 | |||
International Value Fund | 82 |
79 |
Notes to Financial Statements (Unaudited) (Continued)
Fund | Amount | |||
Mid Cap Growth Fund | $ | 35,824 | ||
Small Cap Growth Fund | 1,973 | |||
Sustainability and Impact Equity Fund | 17,317 |
In addition, the Underwriter collected CDSC on the redemption of Class C shares of the Funds listed below during the six months ended September 30, 2017:
Fund | Class C | |||
Flexible Income Fund | $ | 1,996 | ||
Focused Fund | 109 | |||
Growth Opportunities Fund | 9 | |||
Mid Cap Growth Fund | 172 | |||
Sustainability and Impact Equity Fund | 98 |
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 September 30, 2017, the Funds did not engage in any Rule 17a-7 transactions, as defined under the 1940 Act.
5. Federal Tax Information
Federal income tax — It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. It is each Fund’s policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid for the years ended March 31, 2017 and March 31, 2016 are as follows:
Flexible | Growth | |||||||||||||||||||||||
Income Fund | Focused Fund | Opportunities Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
From ordinary income | $ | 18,697,931 | $ | 12,216,849 | $ | 7,223,956 | $ | 8,434,874 | $ | 6,735,141 | $ | 1,772,322 | ||||||||||||
From long-term capital gains | — | — | 12,445,614 | 27,791,755 | 1,718,652 | 23,776,825 | ||||||||||||||||||
Total distributions | $ | 18,697,931 | $ | 12,216,849 | $ | 19,669,570 | $ | 36,226,629 | $ | 8,453,793 | $ | 25,549,147 |
International | International | Mid Cap | ||||||||||||||||||
Growth Fund | Value Fund | Growth Fund | ||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | ||||||||||||||||
2017* | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
From ordinary income | $ | 54,008 | $ | 2,828,829 | $ | 3,765,519 | $ | — | $ | 8,520,663 | ||||||||||
From long-term capital gains | — | — | — | 19,400,314 | 61,652,123 | |||||||||||||||
Total distributions | $ | 54,008 | $ | 2,828,829 | $ | 3,765,519 | $ | 19,400,314 | $ | 70,172,786 |
80 |
Notes to Financial Statements (Unaudited) (Continued)
Sands Capital | Sustainability | |||||||||||||||||||||||
Emerging Markets | Small Cap | and Impact Equity | ||||||||||||||||||||||
Growth Fund | Growth Fund | Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
March 31, | March 31, | March 31, | March 31, | March 31, | March 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
From ordinary income | $ | — | $ | — | $ | — | $ | 870,393 | $ | 1,573,282 | $ | 54,125,427 | ||||||||||||
From long-term capital gains | — | — | 1,973,248 | 3,899,710 | — | 116,661,558 | ||||||||||||||||||
Total distributions | $ | — | $ | — | $ | 1,973,248 | $ | 4,770,103 | $ | 1,573,282 | $ | 170,786,985 |
* Represents the period from commencement of operations (April 1, 2016) through March 31, 2017.
The following information is computed on a tax basis for each item as of March 31, 2017:
Flexible | Growth | |||||||||||
Income | Focused | Opportunities | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 661,995,083 | $ | 1,181,368,111 | $ | 199,159,500 | ||||||
Gross unrealized appreciation | 15,587,620 | 337,186,152 | 46,388,187 | |||||||||
Gross unrealized depreciation | (7,757,253 | ) | (28,808,130 | ) | (2,392,259 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | 7,830,367 | 308,378,022 | 43,995,928 | |||||||||
Net unrealized appreciation (depreciation) on written options, futures contracts, foreign currency contracts and translation of other assets and liabilities denominated in foreign currency | 198,957 | — | — | |||||||||
Post-October and Qualified Late-Year Losses | (6,092,860 | ) | — | — | ||||||||
Capital loss carryforwards | (6,355,592 | ) | — | — | ||||||||
Other temporary differences | (2,895 | ) | — | — | ||||||||
Undistributed ordinary income | 971,298 | 28,449,688 | — | |||||||||
Undistributed capital gains | — | 24,377,152 | — | |||||||||
Accumulated earnings (deficit) | $ | (3,450,725 | ) | $ | 361,204,862 | $ | 43,995,928 |
International | International | Mid Cap | ||||||||||
Growth | Value | Growth | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 11,713,754 | $ | 23,788,463 | $ | 578,300,409 | ||||||
Gross unrealized appreciation | 1,038,389 | 1,152,534 | 137,701,943 | |||||||||
Gross unrealized depreciation | (200,427 | ) | (2,908,955 | ) | (6,141,967 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | 837,962 | (1,756,421 | ) | 131,559,976 | ||||||||
Net unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currency | — | (2,711 | ) | — | ||||||||
Post-October and Qualified Late-Year Losses | — | — | (866,767 | ) | ||||||||
Capital loss carryforwards | (242,452 | ) | (80,654,517 | ) | — | |||||||
Undistributed ordinary income | 37,593 | 162,466 | — | |||||||||
Undistributed capital gains | — | — | 39,723,289 | |||||||||
Accumulated earnings (deficit) | $ | 633,103 | $ | (82,251,183 | ) | $ | 170,416,498 |
81 |
Notes to Financial Statements (Unaudited) (Continued)
Sands Capital | ||||||||||||
Emerging Markets | Small Cap | Sustainability | ||||||||||
Growth | Growth | and Impact Equity | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 250,994,098 | $ | 412,985,249 | $ | 280,583,746 | ||||||
Gross unrealized appreciation | 46,258,436 | 51,524,944 | 39,026,413 | |||||||||
Gross unrealized depreciation | (9,689,295 | ) | (18,572,452 | ) | (10,404,286 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | 36,569,141 | 32,952,492 | 28,622,127 | |||||||||
Net unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currency | 21,365 | — | (634 | ) | ||||||||
Net unrealized appreciation (depreciation) on deferred foreign capital gains tax | (1,962,995 | ) | — | — | ||||||||
Post-October and Qualified Late-Year Losses | (310,110 | ) | (462,497 | ) | — | |||||||
Capital loss carryforwards | (12,013,525 | ) | (24,155,339 | ) | (11,335,434 | ) | ||||||
Undistributed ordinary income | — | — | 1,374,762 | |||||||||
Accumulated earnings (deficit) | $ | 22,303,876 | $ | 8,334,656 | $ | 18,660,821 |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, trust preferred securities, mark to market adjustments, non-REIT return of capital and investments in passive foreign investment company (“PFIC”) adjustments.
As of March 31, 2017, the Funds had the following capital loss carryforwards for federal income tax purposes:
No | No | |||||||||||||||||||
Short Term Expiring in* | Expiration | Expiration | ||||||||||||||||||
Fund | 2018 | 2019 | Short Term * | Long Term * | Total | |||||||||||||||
Flexible Income Fund | $ | — | $ | 6,355,592 | $ | — | $ | — | $ | 6,355,592 | ||||||||||
International Growth Fund | — | — | 242,452 | — | 242,452 | |||||||||||||||
International Value Fund | 70,912,135 | — | 3,193,862 | 6,548,520 | 80,654,517 | |||||||||||||||
Sands Capital Emerging Markets Growth Fund | — | — | 9,534,285 | 2,479,240 | 12,013,525 | |||||||||||||||
Small Cap Growth Fund | — | — | 8,474,434 | 15,680,905 | 24,155,339 | |||||||||||||||
Sustainability and Impact Equity Fund | — | — | 10,982,150 | 353,284 | 11,335,434 |
* The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act made changes to several tax rules impacting the Funds. The provisions of the Act first became effective for the Funds’ fiscal year ended March 31, 2012 and are applicable to all subsequent fiscal years. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses must be utilized before pre-enactment capital loss carryovers may be utilized. Under 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.
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
As of September 30, 2017, the Trust had the following federal tax costs resulting in net unrealized appreciation (depreciation) as follows:
Gross | Gross | Gross | Gross | |||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | Net | ||||||||||||||||||||
Appreciation | Depreciation | Appreciation | Depreciation | Unrealized | ||||||||||||||||||||
Federal Tax | on | on | on | on | Appreciation | |||||||||||||||||||
Fund | Cost | Investments | Investments | Derivatives | Derivatives | (Depreciation) | ||||||||||||||||||
Flexible Income Fund | $ | 747,679,684 | $ | 23,156,035 | $ | (4,346,768 | ) | $ | 336,049 | $ | (162,023 | ) | $ | 18,983,293 | ||||||||||
Focused Fund | 979,479,366 | 295,355,422 | (33,636,565 | ) | — | — | 261,718,857 |
82 |
Notes to Financial Statements (Unaudited) (Continued)
Gross | Gross | Gross | Gross | |||||||||||||||||||||
Unrealized | Unrealized | Unrealized | Unrealized | Net | ||||||||||||||||||||
Appreciation | Depreciation | Appreciation | Depreciation | Unrealized | ||||||||||||||||||||
Federal Tax | on | on | on | on | Appreciation | |||||||||||||||||||
Fund | Cost | Investments | Investments | Derivatives | Derivatives | (Depreciation) | ||||||||||||||||||
Growth Opportunities Fund | $ | 210,419,006 | $ | 60,836,182 | $ | (1,780,313 | ) | $ | — | $ | — | $ | 59,055,869 | |||||||||||
International Growth Fund | 13,679,667 | 2,570,159 | (95,902 | ) | — | — | 2,474,257 | |||||||||||||||||
International Value Fund | 23,776,203 | 2,315,534 | (1,836,444 | ) | — | — | 479,090 | |||||||||||||||||
Mid Cap Growth Fund | 561,511,161 | 171,121,033 | (5,840,657 | ) | — | — | 165,280,376 | |||||||||||||||||
Sands Capital Emerging Markets Growth Fund | 357,279,173 | 98,950,301 | (12,161,515 | ) | — | — | 86,788,786 | |||||||||||||||||
Small Cap Growth Fund | 266,923,107 | 53,907,778 | (6,815,037 | ) | — | — | 47,092,741 | |||||||||||||||||
Sustainability and Impact Equity Fund | 294,511,726 | 70,178,428 | (9,012,405 | ) | — | — | 61,166,023 |
The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended March 31, 2014 through 2017) and have concluded that no provision for income tax is required in their financial statements.
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 Foreign Investments — Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
Risks Associated with Concentration — Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may
83 |
Notes to Financial Statements (Unaudited) (Continued)
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.
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.
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.
At a meeting of the Board of Trustees (the “Board”) of the Trust held on April 18, 2017, the Board approved an Agreement and Plan of Reorganization for the Touchstone Flexible Income Fund to acquire the assets of the Sentinel Multi-Asset Income Fund and the Touchstone Sustainability and Impact Equity Fund to acquire the assets of the Sentinel Sustainable Core Opportunities Fund, collectively the “Reorganization”. The Reorganization occurred on October 27, 2017.
There were no other subsequent events that necessitated recognition or disclosure in the Funds’ financial statements.
84 |
Proxy Voting Guidelines
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30 is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; or (iii) will be made available to shareholders upon request by calling 1.800.543.0407. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
Schedule of Shareholder Expenses
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions; and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2017 through September 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 September 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
85 |
Other Items (Unaudited) (Continued)
Schedule of Shareholder Expenses (continued)
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.
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
September 30, | April 1, | September 30, | September 30, | |||||||||||||||
2017 | 2017 | 2017 | 2017* | |||||||||||||||
Touchstone Flexible Income Fund | ||||||||||||||||||
Class A | Actual | 1.09 | % | $ | 1,000.00 | $ | 1,035.20 | $ | 5.56 | ** | ||||||||
Class A | Hypothetical | 1.09 | % | $ | 1,000.00 | $ | 1,019.60 | $ | 5.52 | ** | ||||||||
Class C | Actual | 1.84 | % | $ | 1,000.00 | $ | 1,031.70 | $ | 9.37 | ** | ||||||||
Class C | Hypothetical | 1.84 | % | $ | 1,000.00 | $ | 1,015.84 | $ | 9.30 | ** | ||||||||
Class Y | Actual | 0.84 | % | $ | 1,000.00 | $ | 1,036.30 | $ | 4.29 | ** | ||||||||
Class Y | Hypothetical | 0.84 | % | $ | 1,000.00 | $ | 1,020.86 | $ | 4.26 | ** | ||||||||
Institutional Class | Actual | 0.74 | % | $ | 1,000.00 | $ | 1,036.80 | $ | 3.78 | ** | ||||||||
Institutional Class | Hypothetical | 0.74 | % | $ | 1,000.00 | $ | 1,021.36 | $ | 3.75 | ** | ||||||||
Touchstone Focused Fund | ||||||||||||||||||
Class A | Actual | 1.20 | % | $ | 1,000.00 | $ | 1,050.70 | $ | 6.17 | |||||||||
Class A | Hypothetical | 1.20 | % | $ | 1,000.00 | $ | 1,019.05 | $ | 6.07 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 1,046.90 | $ | 10.01 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.29 | $ | 9.85 | |||||||||
Class Y | Actual | 0.92 | % | $ | 1,000.00 | $ | 1,052.10 | $ | 4.73 | |||||||||
Class Y | Hypothetical | 0.92 | % | $ | 1,000.00 | $ | 1,020.46 | $ | 4.66 | |||||||||
Institutional Class | Actual | 0.83 | % | $ | 1,000.00 | $ | 1,052.60 | $ | 4.27 | |||||||||
Institutional Class | Hypothetical | 0.83 | % | $ | 1,000.00 | $ | 1,020.91 | $ | 4.20 | |||||||||
Touchstone Growth Opportunities Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,109.00 | $ | 6.56 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.85 | $ | 6.28 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 1,105.10 | $ | 10.50 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.09 | $ | 10.05 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,110.50 | $ | 5.24 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,111.40 | $ | 4.71 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.61 | $ | 4.51 | |||||||||
Touchstone International Growth Fund | ||||||||||||||||||
Class A | Actual | 1.32 | % | $ | 1,000.00 | $ | 1,150.00 | $ | 7.11 | |||||||||
Class A | Hypothetical | 1.32 | % | $ | 1,000.00 | $ | 1,018.45 | $ | 6.68 | |||||||||
Class C | Actual | 2.07 | % | $ | 1,000.00 | $ | 1,146.20 | $ | 11.14 | |||||||||
Class C | Hypothetical | 2.07 | % | $ | 1,000.00 | $ | 1,014.69 | $ | 10.45 | |||||||||
Class Y | Actual | 1.07 | % | $ | 1,000.00 | $ | 1,151.10 | $ | 5.77 | |||||||||
Class Y | Hypothetical | 1.07 | % | $ | 1,000.00 | $ | 1,019.70 | $ | 5.42 | |||||||||
Institutional Class | Actual | 0.97 | % | $ | 1,000.00 | $ | 1,150.90 | $ | 5.23 | |||||||||
Institutional Class | Hypothetical | 0.97 | % | $ | 1,000.00 | $ | 1,020.21 | $ | 4.91 |
86 |
Other Items (Unaudited) (Continued)
Schedule of Shareholder Expenses (continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
September 30, | April 1, | September 30, | September 30, | |||||||||||||||
2017 | 2017 | 2017 | 2017* | |||||||||||||||
Touchstone International Value Fund | ||||||||||||||||||
Class A | Actual | 1.34 | % | $ | 1,000.00 | $ | 1,118.10 | $ | 7.12 | |||||||||
Class A | Hypothetical | 1.34 | % | $ | 1,000.00 | $ | 1,018.35 | $ | 6.78 | |||||||||
Class C | Actual | 2.09 | % | $ | 1,000.00 | $ | 1,113.00 | $ | 11.07 | |||||||||
Class C | Hypothetical | 2.09 | % | $ | 1,000.00 | $ | 1,014.59 | $ | 10.56 | |||||||||
Class Y | Actual | 1.09 | % | $ | 1,000.00 | $ | 1,119.30 | $ | 5.79 | |||||||||
Class Y | Hypothetical | 1.09 | % | $ | 1,000.00 | $ | 1,019.60 | $ | 5.52 | |||||||||
Institutional Class | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,119.50 | $ | 5.26 | |||||||||
Institutional Class | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 | |||||||||
Touchstone Mid Cap Growth Fund | ||||||||||||||||||
Class A | Actual | 1.30 | % | $ | 1,000.00 | $ | 1,096.90 | $ | 6.83 | |||||||||
Class A | Hypothetical | 1.30 | % | $ | 1,000.00 | $ | 1,018.55 | $ | 6.58 | |||||||||
Class C | Actual | 2.08 | % | $ | 1,000.00 | $ | 1,092.50 | $ | 10.91 | |||||||||
Class C | Hypothetical | 2.08 | % | $ | 1,000.00 | $ | 1,014.64 | $ | 10.50 | |||||||||
Class Y | Actual | 1.03 | % | $ | 1,000.00 | $ | 1,098.10 | $ | 5.42 | |||||||||
Class Y | Hypothetical | 1.03 | % | $ | 1,000.00 | $ | 1,019.90 | $ | 5.22 | |||||||||
Institutional Class | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,098.50 | $ | 5.21 | |||||||||
Institutional Class | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 | |||||||||
Touchstone Sands Capital Emerging Markets Growth Fund | ||||||||||||||||||
Class Y | Actual | 1.49 | % | $ | 1,000.00 | $ | 1,167.30 | $ | 8.10 | |||||||||
Class Y | Hypothetical | 1.49 | % | $ | 1,000.00 | $ | 1,017.60 | $ | 7.54 | |||||||||
Institutional Class | Actual | 1.39 | % | $ | 1,000.00 | $ | 1,166.80 | $ | 7.55 | |||||||||
Institutional Class | Hypothetical | 1.39 | % | $ | 1,000.00 | $ | 1,018.10 | $ | 7.03 | |||||||||
Touchstone Small Cap Growth Fund | ||||||||||||||||||
Class A | Actual | 1.44 | % | $ | 1,000.00 | $ | 1,063.10 | $ | 7.45 | |||||||||
Class A | Hypothetical | 1.44 | % | $ | 1,000.00 | $ | 1,017.85 | $ | 7.28 | |||||||||
Class C | Actual | 2.19 | % | $ | 1,000.00 | $ | 1,060.30 | $ | 11.31 | |||||||||
Class C | Hypothetical | 2.19 | % | $ | 1,000.00 | $ | 1,014.09 | $ | 11.06 | |||||||||
Class Y | Actual | 1.19 | % | $ | 1,000.00 | $ | 1,065.10 | $ | 6.16 | |||||||||
Class Y | Hypothetical | 1.19 | % | $ | 1,000.00 | $ | 1,019.10 | $ | 6.02 | |||||||||
Institutional Class | Actual | 1.04 | % | $ | 1,000.00 | $ | 1,064.50 | $ | 5.38 | |||||||||
Institutional Class | Hypothetical | 1.04 | % | $ | 1,000.00 | $ | 1,019.85 | $ | 5.27 |
87 |
Other Items (Unaudited) (Continued)
Schedule of Shareholder Expenses (continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
September 30, | April 1, | September 30, | September 30, | |||||||||||||||
2017 | 2017 | 2017 | 2017* | |||||||||||||||
Touchstone Sustainability and Impact Equity Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,116.60 | $ | 6.58 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.85 | $ | 6.28 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 1,112.80 | $ | 10.54 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.09 | $ | 10.05 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,118.00 | $ | 5.26 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 5.01 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,118.40 | $ | 4.73 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.61 | $ | 4.51 |
* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect one-half year period).
** Excluding dividend and interest expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.56, $9.37, $4.29 and $3.78, respectively, and your hypothetical cost of investment in Class A, Class C, ClassY and Institutional Class would be $5.52, $9.30, $4.26 and $3.75, respectively.
88 |
This page intentionally left blank.
This page intentionally left blank.
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.
91 |
Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
Investment Advisor
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, Massachusetts 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-54-TST-SAR-1710
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 last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Touchstone Strategic Trust
By (Signature and Title)* /s/ Jill T. McGruder
Jill T. McGruder, President
(principal executive officer)
Date 11/22/2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ Jill T. McGruder
Jill T. McGruder, President
(principal executive officer)
Date 11/22/2017
By (Signature and Title)* /s/ Terrie A. Wiedenheft
Terrie A. Wiedenheft, Controller and Treasurer
(principal financial officer)
Date 11/22/2017
* Print the name and title of each signing officer under his or her signature.