Touchstone Mid Cap Value Fund (TCVAX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-8104
Touchstone Funds Group Trust
(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100, Cincinnati, Ohio					45202
(Address of principal executive offices)					(Zip code)
Jill T. McGruder, 303 Broadway, Suite 1100, Cincinnati, Ohio 45202
(Name and address of agent for service)
Registrant’s telephone number, including area code:				(513) 878-4066
Date of fiscal year end:	09/30
Date of reporting period:		3/31/11

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.

Touchstone Funds Group Trust Semiannual Report

March 31, 2011
(Unaudited)

Semi-Annual Report

Touchstone Funds Group Trust

Touchstone Capital Appreciation Fund

Touchstone Core Plus Fixed Income Fund

Touchstone Emerging Markets Equity Fund

Touchstone Focused Equity Fund

Touchstone Global Equity Fund

Touchstone Global Real Estate Fund

Touchstone Healthcare and Biotechnology Fund

Touchstone Intermediate Fixed Income Fund

Touchstone International Fixed Income

Touchstone Large Cap Relative Value Fund

Touchstone Market Neutral Equity Fund

Touchstone Mid Cap Fund

Touchstone Mid Cap Value Fund

Touchstone Premium Yield Equity Fund

Touchstone Sands Capital Select Growth Fund

Touchstone Short Duration Fixed Income Fund

Touchstone Small Cap Core Fund

Touchstone Small Cap Value Fund
(formerly Touchstone Small Cap Value Opportunities Fund)

Touchstone Ultra Short Duration Fixed Income Fund

Table of Contents

	Page
Tabular Presentation of Portfolios of Investments (Unaudited)		3-7
Statements of Assets and Liabilities		8-17
Statements of Operations		18-22
Statements of Changes in Net Assets		23-32
Financial Highlights		33-67
Notes to Financial Statements		68-97
Portfolios of Investments:
Touchstone Capital Appreciation Fund		98
Touchstone Core Plus Fixed Income Fund		99-105
Touchstone Emerging Markets Equity Fund		106-107
Touchstone Focused Equity Fund		108
Touchstone Global Equity Fund		109-110
Touchstone Global Real Estate Fund		111-112
Touchstone Healthcare and Biotechnology Fund		113
Touchstone Intermediate Fixed Income Fund		114-117
Touchstone International Fixed Income		118-120
Touchstone Large Cap Relative Value Fund		121
Touchstone Market Neutral Equity Fund		122-127
Touchstone Mid Cap Fund		128-129
Touchstone Mid Cap Value Fund		130-131
Touchstone Premium Yield Equity Fund		132
Touchstone Sands Capital Select Growth Fund		133
Touchstone Short Duration Fixed Income Fund		134-138
Touchstone Small Cap Core Fund		139
Touchstone Small Cap Value Fund		140-141
Touchstone Ultra Short Duration Fixed Income Fund		142-148
Other Items (Unaudited)		149-166
Privacy Protection Policy		167

2

Tabular Presentation of Portfolios of Investments (Unaudited)

March 31, 2011

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

Touchstone Capital Appreciation Fund

Sector Allocation*	(% of Net Assets)
Information Technology		21.3
Health Care		18.4
Consumer Staples		13.6
Industrials		10.3
Energy		10.0
Consumer Discretionary		9.7
Financials		7.9
Materials		3.2
Investment Fund		5.1
Other Assets/Liabilities (Net)		0.5
Total		100.0

Touchstone Core Plus Fixed Income Fund

Credit Quality	(% of Investment Securities
U.S. Treasury		9.5
U.S. Agency		19.3
AAA/Aaa		13.7
AA/Aa		5.4
A/A		14.3
BBB/Baa		21.8
BB/Ba		7.1
B/B		8.9
Total		100.0

Touchstone Emerging Markets Equity Fund

Sector Allocation*	(% of Net Assets)
Financials		20.1
Materials		15.6
Consumer Discretionary		15.1
Energy		12.5
Consumer Staples		9.7
Information Technology		8.3
Telecommunication Services		5.7
Industrials		5.4
Utilities		3.9
Health Care		1.1
Investment Funds		4.9
Other Assets/Liabilities (Net)		(2.3	)
Total		100.0

Touchstone Focused Equity Fund

Sector Allocation*	(% of Net Assets)
Financials		24.7
Information Technology		16.4
Consumer Discretionary		13.2
Health Care		11.4
Energy		8.6
Industrials		8.4
Consumer Staples		6.7
Materials		2.5
Telecommunication Services		1.2
Investment Funds		12.5
Other Assets/Liabilities (Net)		(5.6	)
Total		100.0

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

3

Tabular Presentation of Portfolios of Investments (Continued)

Touchstone Global Equity Fund

Sector Allocation*	(% of Net Assets)
Materials		19.6
Consumer Staples		17.2
Industrials		13.0
Energy		10.6
Telecommunication Services		9.3
Health Care		8.9
Financials		6.1
Consumer Discretionary		6.0
Information Technology		4.9
Investment Fund		2.4
Other Assets/Liabilities (Net)		2.0
Total		100.0

Touchstone Global Real Estate Fund

Sector Allocation*	(% of Net Assets)
Financials		98.5
Investment Funds		2.2
Other Assets/Liabilities (Net)		(0.7	)
Total		100.0

Touchstone Health Care and Biotechnology Fund

Sector Allocation*	(% of Net Assets)
Health Care		95.0
Information Technology		3.6
Investment Funds		7.6
Other Assets/Liabilities (Net)		(6.2	)
Total		100.0

Touchstone Intermediate Fixed Income Fund

Credit Quality	(% of Investment Securities)
U.S. Treasury		25.5
U.S. Agency		5.2
AAA/Aaa		14.5
AA/Aa		9.6
A/A		24.0
BBB/Baa		21.2
Total		100.0

Touchstone International Fixed Income Fund

Credit Quality	(% of Investment Securities)
AAA/Aaa		48.4
AA/Aa		21.2
A/A		11.6
BBB/Baa		9.4
BB/Ba		3.4
B/B		1.2
CC/Ca		0.3
NR		4.5
Total		100.0

Touchstone Large Cap Relative Value Fund

Sector Allocation*	(% of Net Assets)
Energy		16.3
Financials		16.1
Consumer Discretionary		14.8
Information Technology		13.2
Industrials		13.1
Health Care		9.8
Utilities		4.1
Materials		4.0
Telecommunication Services		2.1
Consumer Staples		1.4
Investment Fund		5.2
Other Assets/Liabilities (Net)		(0.1	)
Total		100.0

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

4

Tabular Presentation of Portfolios of Investments (Continued)

Touchstone Market Neutral Equity Fund

Sector Allocation*	(% of Net Assets)
Long Positions
Information Technology		22.4
Financials		20.2
Consumer Discretionary		11.6
Health Care		11.0
Industrials		10.8
Energy		7.9
Utilities		5.5
Consumer Staples		2.2
Materials		2.0
Telecommunication Services		0.3
Investment Fund		0.4
Cash Collateral for Securities Sold Short		100.2
Other Assets/Liabilities (Net)		(0.2	)
		194.3
Short Positions
Financials		(20.7	)
Information Technology		(19.6	)
Consumer Discretionary		(12.6	)
Industrials		(11.6	)
Health Care		(10.6	)
Energy		(7.6	)
Utilities		(5.8	)
Materials		(3.1	)
Consumer Staples		(2.2	)
Telecommunication Services		(0.5	)
		(94.3	)
Total		100.0

Touchstone Mid Cap Fund

Sector Allocation*	(% of Net Assets)
Information Technology		19.0
Financials		13.3
Consumer Discretionary		12.7
Industrials		10.8
Materials		9.9
Health Care		9.8
Energy		8.9
Consumer Staples		7.3
Utilities		4.0
Telecommunication Services		2.6
Investment Funds		10.5
Other Assets/Liabilities (Net)		(8.8	)
Total		100.0

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

5

Tabular Presentation of Portfolios of Investments (Continued)

Touchstone Mid Cap Value Fund

Sector Allocation*	(% of Net Assets)
Financials		23.2
Industrials		14.0
Utilities		10.3
Energy		10.0
Materials		9.3
Information Technology		8.7
Consumer Discretionary		7.7
Consumer Staples		7.2
Health Care		7.0
Investment Funds		10.0
Other Assets/Liabilities (Net)		(7.4	)
Total		100.0

Touchstone Premium Yield Equity Fund

Sector Allocation*	(% of Net Assets)
Energy		25.2
Utilities		17.2
Health Care		17.1
Telecommunication Services		11.6
Financials		11.5
Information Technology		7.5
Industrials		2.9
Materials		2.0
Consumer Staples		1.8
Consumer Discretionary		1.1
Investment Fund		2.0
Other Assets/Liabilities (Net)		0.1
Total		100.0

Touchstone Sands Capital Select Growth Fund

Sector Allocation*	(% of Net Assets)
Information Technology		36.9
Consumer Discretionary		19.0
Health Care		17.1
Energy		13.9
Financials		5.9
Industrials		4.1
Materials		1.8
Investment Funds		9.6
Other Assets/Liabilities (Net)		(8.3	)
Total		100.0

Touchstone Short Duration Fixed Income Fund

Credit Quality	(% of Investment Securities)
U.S. Treasury		5.1
U.S. Agency		25.8
AAA/Aaa		45.4
AA/Aa		8.4
A/A		8.7
BBB/Baa		6.6
Total		100.0

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

6

Tabular Presentation of Portfolios of Investments (Continued)

Touchstone Small Cap Core Fund

Sector Allocation*	(% of Net Assets)
Financials		22.9
Industrials		17.4
Consumer Discretionary		15.7
Materials		10.7
Information Technology		10.0
Consumer Staples		8.0
Energy		7.6
Health Care		5.8
Investment Funds		11.7
Other Assets/Liabilities (Net)		(9.8	)
Total		100.0

Touchstone Small Cap Value Fund

Sector Allocation*	(% of Net Assets)
Financials		30.1
Industrials		23.3
Consumer Discretionary		10.4
Materials		8.3
Utilities		6.5
Information Technology		4.2
Energy		3.4
Health Care		3.1
Consumer Staples		1.6
Investment Funds		9.0
Other Assets/Liabilities (Net)		0.1
Total		100.0

Touchstone Ultra Short Duration Fixed Income Fund

Credit Quality	(% of Investment Securities)
U.S. Agency		29.0
AAA/Aaa		45.4
AA/Aa		10.9
A/A		7.0
BBB/Baa		6.9
NR		0.8
Total		100.0

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

7

Statements of Assets and Liabilities

March 31, 2011 (Unaudited)

	Touchstone Capital Appreciation Fund		Touchstone Core Plus Fixed Income Fund			Touchstone Emerging Markets Equity Fund			Touchstone Focused Equity Fund
Assets
Investment securities:
At cost	$	7,189,416	$	27,508,097		$	318,835,927		$	107,489,638
Affiliated securities, at market value	$	403,772	$	524,615		$	7,614,251		$	6,968,695
Non-affiliated securities, at market value		7,456,427		27,453,914			336,790,652			103,503,498
At market value (A)	$	7,860,199	$	27,978,529		$	344,404,903		$	110,472,193
Foreign currency, at cost of $3,477 and $134,375 for the Core Plus Fixed Income Fund and the Emerging Markets Equity Fund		—		3,690			134,701			—
Unrealized appreciation on forward foreign currency contracts		—		5,974			—			—
Dividends and interest receivable		4,965		285,862			411,524			83,109
Receivable for capital shares sold		20,250		30,467			1,034,291			168,539
Receivable for securities sold		—		342,510			—			989,702
Receivable for securities lending income		—		112			989			2,927
Receivable from Advisor		3,969		—			—			—
Tax reclaims receivable		—		—			2,830			—
Other assets		19,646		20,380			62,782			42,675
Total Assets		7,909,029		28,667,524			346,052,020			111,759,145
Liabilities
Unrealized depreciation on forward foreign currency contracts		—		6,959			—			—
Deferred capital gain country tax		—		—			303,940			—
Payable upon return of securities loaned		—		126,108			8,740,784			6,119,266
Payable for capital shares redeemed		—		—			78,896			97,183
Payable for securities purchased		—		543,551			—			791,444
Payable to Advisor		—		2,279			300,660			69,800
Payable to other affiliates		703		3,627			11,730			19,726
Payable to Trustees		1,338		1,338			1,338			1,408
Other accrued expenses and liabilities		5,648		22,390			13,124			1,246
Total Liabilities		7,689		706,252			9,450,472			7,100,073
Net Assets	$	7,901,340	$	27,961,272		$	336,601,548		$	104,659,072
Net assets consist of:
Paid-in capital	$	7,206,065	$	27,589,825		$	312,641,699		$	100,845,563
Accumulated net investment income (loss)		3,248		(128,988	)		(97,772	)		51,304
Accumulated net realized gains (losses) on investments and foreign currency transactions		21,244		30,262			(1,215,155	)		779,650
Net unrealized appreciation (depreciation) on investments		670,783		470,432			25,265,036			2,982,555
Net unrealized appreciation (depreciation) on foreign currency and translation of other assets and liabilities denominated in foreign currency		—		(259	)		7,740			—
Net Assets	$	7,901,340	$	27,961,272		$	336,601,548		$	104,659,072
Pricing of Class A Shares
Net assets attributable to Class A shares	$	4,074,969	$	2,769,287		$	35,449,770		$	90,503,804
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		355,466		270,001			2,720,899			7,118,701
Net asset value and redemption price per share	$	11.46	$	10.26		$	13.03		$	12.71
Maximum offering price per share	$	12.16	$	10.77		$	13.82		$	13.49

8

Statements of Assets and Liabilities (Continued)

	Touchstone Capital Appreciation Fund		Touchstone Core Plus Fixed Income Fund		Touchstone Emerging Markets Equity Fund		Touchstone Focused Equity Fund
Pricing of Class C Shares
Net assets attributable to Class C shares	$	466,231	$	2,408,737	$	7,176,686	$	274,239
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		41,018		235,146		556,664		21,706
Net asset value, offering price and redemption price per share*	$	11.37	$	10.24	$	12.89	$	12.63
Pricing of Class Y Shares
Net assets attributable to Class Y shares	$	148,231	$	804,193	$	95,629,904	$	12,974,927
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		12,938		78,360		7,311,778		1,011,007
Net asset value, offering price and redemption price per share	$	11.46	$	10.26	$	13.08	$	12.83
Pricing of Institutional Class Shares
Net assets attributable to Institutional Class shares	$	3,211,909	$	21,979,055	$	198,345,188	$	906,102
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		280,680		2,141,622		15,149,177		73,084
Net asset value, offering price and redemption price per share	$	11.44	$	10.26	$	13.09	$	12.40
(A) Includes market value of securities on loan of:	$	—	$	121,650	$	8,530,432	$	5,904,730

*  Redemption price per share varies by length of time shares are held.

See accompanying notes to financial statements.

9

Statements of Assets and Liabilities (Continued)

	Touchstone Global Equity Fund			Touchstone Global Real Estate Fund			Touchstone Healthcare and Biotechnology Fund			Touchstone Intermediate Fixed Income Fund
Assets
Investment securities:
At cost	$	3,792,330		$	3,992,186		$	20,172,228		$	97,223,623
Affiliated securities, at market value	$	103,614		$	30,076		$	479,526		$	1,956,878
Non-affiliated securities, at market value		4,203,535			4,320,048			25,914,736			98,002,373
At market value (A)	$	4,307,149		$	4,350,124		$	26,394,262		$	99,959,251
Foreign currency, at cost of $1,077 for the Global Equity Fund		1,108			—			—			—
Dividends and interest receivable		10,322			11,458			8,509			911,618
Receivable for capital shares sold		27			487			7,101			5,723
Receivable for securities sold		70,677			69,228			—			—
Receivable for securities lending income		14			117			56			—
Receivable from Advisor		6,003			10,562			—			—
Tax reclaims receivable		3,584			339			—			—
Other assets		14,183			12,301			11,268			4,154
Total Assets		4,413,067			4,454,616			26,421,196			100,880,746
Liabilities
Dividends payable		—			—			—			276,082
Payable upon return of securities loaned		—			63,525			1,421,000			—
Payable for capital shares redeemed		—			400			34,205			20,912
Payable for securities purchased		652			59,345			—			—
Payable to Advisor		—			—			30,956			31,357
Payable to other affiliates		803			666			37,972			818
Payable to Trustees		1,338			1,338			887			1,500
Other accrued expenses and liabilities		13,599			8,295			41,435			12,704
Total Liabilities		16,392			133,569			1,566,455			343,373
Net Assets	$	4,396,675		$	4,321,047		$	24,854,741		$	100,537,373
Net assets consist of:
Paid-in capital	$	3,697,904		$	3,835,516		$	27,012,991		$	98,002,676
Accumulated net investment income (loss)		(6,198	)		(99,091	)		(115,608	)		(45,896	)
Accumulated net realized gains (losses) on investments and foreign currency transactions		189,747			226,757			(8,264,676	)		(155,035	)
Net unrealized appreciation (depreciation) on investments		514,819			357,938			6,222,034			2,735,628
Net unrealized appreciation (depreciation) on foreign currency and translation of other assets and liabilities denominated in foreign currency		403			(73	)		—			—
Net Assets	$	4,396,675		$	4,321,047		$	24,854,741		$	100,537,373
Pricing of Class A Shares
Net assets attributable to Class A shares	$	696,109		$	539,877		$	23,071,387		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		60,752			47,070			1,416,105			—
Net asset value and redemption price per share	$	11.46		$	11.47		$	16.29		$	—
Maximum offering price per share	$	12.16		$	12.17		$	17.28		$	—

10

Statements of Assets and Liabilities (Continued)

	Touchstone Global Equity Fund		Touchstone Global Real Estate Fund		Touchstone Healthcare and Biotechnology Fund		Touchstone Intermediate Fixed Income Fund
Pricing of Class C Shares
Net assets attributable to Class C shares	$	115,197	$	132,758	$	1,783,354	$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		10,091		11,483		112,921		—
Net asset value, offering price and redemption price per share*	$	11.42	$	11.56	$	15.79	$	—
Pricing of Class Y Shares
Net assets attributable to Class Y shares	$	185,679	$	139,832	$	—	$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		16,113		12,057		—		—
Net asset value, offering price and redemption price per share	$	11.52	$	11.60	$	—	$	—
Pricing of Institutional Class Shares
Net assets attributable to Institutional Class shares	$	3,399,690	$	3,508,580	$	—	$	100,537,373
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		295,528		300,409		—		11,235,860
Net asset value, offering price and redemption price per share	$	11.50	$	11.68	$	—	$	8.95
(A) Includes market value of securities on loan of:	$	—	$	62,907	$	1,382,777	$	—

*  Redemption price per share varies by length of time shares are held.

See accompanying notes to financial statements.

11

Statements of Assets and Liabilities (Continued)

	Touchstone International Fixed Income Fund			Touchstone Large Cap Relative Value Fund			Touchstone Market Neutral Equity Fund			Touchstone Mid Cap Fund
Assets
Investment securities:
At cost	$	9,281,276		$	4,773,681		$	26,979,551		$	103,329,407
Affiliated securities, at market value	$	263,310		$	303,020		$	126,246		$	520,788
Non-affiliated securities, at market value		9,158,285			5,560,929			32,144,340			127,342,935
At market value (A)	$	9,421,595		$	5,863,949		$	32,270,586		$	127,863,723
Foreign currency, at cost of $201,406 for the International Fixed Income Fund		200,103			—			—			—
Cash collateral for securities sold short		—			—			34,262,597			—
Unrealized appreciation on forward foreign currency contracts		95,879			—			—			—
Dividends and interest receivable		126,567			5,724			26,664			69,640
Receivable for capital shares sold		—			58			—			235,740
Receivable for securities sold		130,911			—			1,008,524			1,993,846
Receivable for securities lending income		—			—			—			1,673
Receivable from Advisor		3,240			2,730			—			—
Tax reclaims receivable		1,158			—			—			—
Other assets		20,828			15,043			11,104			22,861
Total Assets		10,000,281			5,887,504			67,579,475			130,187,483
Liabilities
Short positions, at cost of $28,246,804 for the Market Neutral Equity Fund		—			—			32,261,376			—
Dividends for securities sold short		—			—			28,012			—
Unrealized depreciation on forward foreign currency contracts		98,513			—			—			—
Payable upon return of securities loaned		—			—			—			11,840,331
Payable for capital shares redeemed		2,690			15,778			—			191,701
Payable for securities purchased		121,349			—			1,028,477			481,471
Payable to Advisor		—			—			27,856			70,886
Payable to other affiliates		1,187			1,003			545			8,619
Payable to Trustees		1,338			1,338			1,338			940
Other accrued expenses and liabilities		31,188			11,287			25,013			23,087
Total Liabilities		256,265			29,406			33,372,617			12,617,035
Net Assets	$	9,744,016		$	5,858,098		$	34,206,858		$	117,570,448
Net assets consist of:
Paid-in capital	$	9,595,614		$	4,764,699		$	35,228,635		$	265,719,730
Accumulated net investment income (loss)		(84,432	)		(13,845	)		(245,638	)		205,429
Accumulated net realized gains (losses) on investments and foreign currency transactions		92,526			16,976			(2,052,602	)		(172,889,027	)
Net unrealized appreciation (depreciation) on investments		140,319			1,090,268			1,276,463			24,534,316
Net unrealized appreciation (depreciation) on foreign currency and translation of other assets and liabilities denominated in foreign currency		(11	)		—			—			—
Net Assets	$	9,744,016		$	5,858,098		$	34,206,858		$	117,570,448
Pricing of Class A Shares
Net assets attributable to Class A shares	$	1,025,760		$	1,775,853		$	605,351		$	819,517
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		98,612			135,407			63,736			52,323
Net asset value and redemption price per share	$	10.40		$	13.11		$	9.50		$	15.66
Maximum offering price per share	$	10.92		$	13.91		$	10.08		$	16.62

12

Statements of Assets and Liabilities (Continued)

	Touchstone International Fixed Income Fund		Touchstone Large Cap Relative Value Fund		Touchstone Market Neutral Equity Fund		Touchstone Mid Cap Fund
Pricing of Class C Shares
Net assets attributable to Class C shares	$	398,517	$	365,376	$	187,371	$	455,609
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		38,343		28,051		19,941		29,416
Net asset value, offering price and redemption price per share*	$	10.39	$	13.03	$	9.40	$	15.49
Pricing of Class Y Shares
Net assets attributable to Class Y shares	$	553,844	$	132,458	$	33,414,136	$	114,721,110
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		53,303		10,148		3,502,764		7,329,144
Net asset value, offering price and redemption price per share	$	10.39	$	13.05	$	9.54	$	15.65
Pricing of Class Z Shares
Net assets attributable to Class Y shares	$	—	$	—	$	—	$	1,574,212
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		—		—		—		101,129
Net asset value, offering price and redemption price per share	$	—	$	—	$	—	$	15.57
Pricing of Institutional Class Shares
Net assets attributable to Institutional Class shares	$	7,765,895	$	3,584,411	$	—	$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		747,165		274,579		—		—
Net asset value, offering price and redemption price per share	$	10.39	$	13.05	$	—	$	—
(A) Includes market value of securities on loan of:	$	—	$	—	$	—	$	11,632,189

*  Redemption price per share varies by length of time shares are held.

See accompanying notes to financial statements.

13

Statements of Assets and Liabilities (Continued)

	Touchstone Mid Cap Value Fund			Touchstone Premium Yield Equity Fund			Touchstone Sands Capital Select Growth Fund			Touchstone Short Duration Fixed Income Fund
Assets
Investment securities:
At cost	$	52,192,598		$	37,239,864		$	871,181,441		$	42,128,545
Affiliated securities, at market value	$	817,906		$	866,515		$	18,114,494		$	684,981
Non-affiliated securities, at market value		58,516,909			42,703,021			1,150,136,050			42,088,312
At market value (A)	$	59,334,815		$	43,569,536		$	1,168,250,544		$	42,773,293
Cash		—			—			—			3,723
Dividends and interest receivable		98,410			99,824			314,619			273,165
Receivable for capital shares sold		122,125			42,594			5,778,395			94,721
Receivable for securities sold		1,259,766			—			5,392,716			8,889
Receivable for securities lending income		1,590			—			5,105			—
Receivable from Advisor		—			—			—			4,416
Tax reclaims receivable		—			2,498			—			—
Other assets		24,631			34,396			120,035			18,521
Total Assets		60,841,337			43,748,848			1,179,861,414			43,176,728
Liabilities
Dividends payable		—			—			—			94,291
Payable upon return of securities loaned		3,846,998			—			85,925,026			—
Payable for capital shares redeemed		6,653			76,948			1,646,480			66,344
Payable for securities purchased		1,691,441			—			12,461,619			—
Payable to Advisor		32,878			29,714			838,977			—
Payable to other affiliates		998			14,394			326,630			7,858
Payable to Trustees		1,338			883			878			883
Other accrued expenses and liabilities		10,451			4,766			6,043			35,858
Total Liabilities		5,590,757			126,705			101,205,653			205,234
Net Assets	$	55,250,580		$	43,622,143		$	1,078,655,761		$	42,971,494
Net assets consist of:
Paid-in capital	$	46,518,331		$	45,675,341		$	889,707,056		$	47,866,095
Accumulated net investment income (loss)		(61,990	)		(108,999	)		(3,969,570	)		(95,619	)
Accumulated net realized gains (losses) on investments and foreign currency transactions		1,652,022			(8,273,871	)		(104,150,828	)		(5,443,730	)
Net unrealized appreciation (depreciation) on investments		7,142,217			6,329,672			297,069,103			644,748
Net Assets	$	55,250,580		$	43,622,143		$	1,078,655,761		$	42,971,494
Pricing of Class A Shares
Net assets attributable to Class A shares	$	3,305,326		$	27,346,600		$	7,280,666		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		237,465			3,805,250			697,177			—
Net asset value and redemption price per share	$	13.92		$	7.19		$	10.44		$	—
Maximum offering price per share	$	14.77		$	7.63		$	11.08		$	—
Pricing of Class C Shares
Net assets attributable to Class C shares	$	180,596		$	8,045,994		$	3,237,203		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		13,001			1,120,039			310,763			—
Net asset value, offering price and redemption price per share*	$	13.89		$	7.18		$	10.42		$	—

14

Statements of Assets and Liabilities (Continued)

	Touchstone Mid Cap Value Fund		Touchstone Premium Yield Equity Fund		Touchstone Sands Capital Select Growth Fund		Touchstone Short Duration Fixed Income Fund
Pricing of Class Y Shares
Net assets attributable to Class Y shares	$	2,220,906	$	8,229,549	$	223,672,892	$	988,491
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		159,066		1,147,378		21,078,486		100,477
Net asset value, offering price and redemption price per share	$	13.96	$	7.17	$	10.61	$	9.84
Pricing of Class Z Shares
Net assets attributable to Class Y shares	$	—	$	—	$	844,465,000	$	41,983,003
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		—		—		80,877,521		4,268,530
Net asset value, offering price and redemption price per share	$	—	$	—	$	10.44	$	9.84
Pricing of Institutional Class Shares
Net assets attributable to Institutional Class shares	$	49,543,752	$	—	$	—	$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		3,537,834		—		—		—
Net asset value, offering price and redemption price per share	$	14.00	$	—	$	—	$	—
(A) Includes market value of securities on loan of:	$	3,748,790	$	—	$	84,005,123	$	—

*  Redemption price per share varies by length of time shares are held.

See accompanying notes to financial statements.

15

Statements of Assets and Liabilities (Continued)

	Touchstone Small Cap Core Fund			Touchstone Small Cap Value Fund			Touchstone Ultra Short Duration Fixed Income Fund
Assets
Investment securities:
At cost	$	175,243,143		$	57,571,077		$	264,740,826
Affiliated securities, at market value	$	10,041,108		$	2,094,999		$	15,373,006
Non-affiliated securities, at market value		193,500,316			59,440,678			249,623,741
At market value (A)	$	203,541,424		$	61,535,677		$	264,996,747
Dividends and interest receivable		209,369			87,303			1,366,191
Receivable for capital shares sold		751,198			28,166			841,366
Receivable for securities sold		—			3,895,725			345,582
Receivable for securities lending income		1,435			1,399			—
Other assets		55,063			25,498			58,950
Total Assets		204,558,489			65,573,768			267,608,836
Liabilities
Dividends payable		—			—			496,188
Payable upon return of securities loaned		11,615,827			3,470,034			—
Payable for capital shares redeemed		212,548			27,881			2,184,744
Payable for securities purchased		7,156,999			244,625			—
Payable to Advisor		105,479			66,783			93,585
Payable to other affiliates		23,504			130,010			26,950
Payable to Trustees		1,338			940			940
Other accrued expenses and liabilities		1,805			31,528			29,980
Total Liabilities		19,117,500			3,971,801			2,832,387
Net Assets	$	185,440,989		$	61,601,967		$	264,776,449
Net assets consist of:
Paid-in capital	$	157,742,578		$	87,378,366		$	280,016,782
Accumulated net investment income (loss)		9,818			(104,488	)		(981,913	)
Accumulated net realized gains (losses) on investments and foreign currency transactions		(609,688	)		(29,636,511	)		(14,514,341	)
Net unrealized appreciation (depreciation) on investments		28,298,281			3,964,600			255,921
Net Assets	$	185,440,989		$	61,601,967		$	264,776,449
Pricing of Class A Shares
Net assets attributable to Class A shares	$	82,133,059		$	2,576		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		5,902,162			145			—
Net asset value and redemption price per share	$	13.92		$	17.77		$	—
Maximum offering price per share	$	14.77		$	18.85		$	—
Pricing of Class C Shares
Net assets attributable to Class C shares	$	12,747,781		$	2,574		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		924,579			145			—
Net asset value, offering price and redemption price per share*	$	13.79		$	17.76	**	$	—
Pricing of Class Y Shares
Net assets attributable to Class Y shares	$	55,201,771		$	2,576		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		3,952,566			145			—
Net asset value, offering price and redemption price per share	$	13.97		$	17.77		$	—

16

Statements of Assets and Liabilities (Continued)

	Touchstone Small Cap Core Fund		Touchstone Small Cap Value Fund		Touchstone Ultra Short Duration Fixed Income Fund
Pricing of Class Z Shares
Net assets attributable to Class Y shares	$	—	$	61,591,665	$	264,776,449
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		—		3,466,075		27,545,358
Net asset value, offering price and redemption price per share	$	—	$	17.77	$	9.61
Pricing of Institutional Class Shares
Net assets attributable to Institutional Class shares	$	35,358,378	$	2,576	$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		2,536,173		145		—
Net asset value, offering price and redemption price per share	$	13.94	$	17.77	$	—
(A) Includes market value of securities on loan of:	$	11,368,663	$	3,378,189	$	—

*  Redemption price per share varies by length of time shares are held.

**  Amount does not calculate due to rounding.

See accompanying notes to financial statements.

17

Statements of Operations

For the Period Ended March 31, 2011 (Unaudited)

	Touchstone Capital Appreciation Fund			Touchstone Core Plus Fixed Income Fund			Touchstone Emerging Markets Equity Fund			Touchstone Focused Equity Fund
Investment Income
Dividends from affiliated securities	$	597		$	968		$	15,790		$	4,163
Dividends from non-affiliated securities (A)		52,881			—			1,752,155			284,196
Interest		—			566,246			75,524			—
Income from securities loaned		44			186			4,786			3,797
Total Investment Income		53,522			567,400			1,848,255			292,156
Expenses
Investment advisory fees		26,693			55,508			1,348,013			129,968
Distribution expenses, Class A		4,309			4,308			34,715			38,211
Distribution expenses, Class C		2,142			10,641			30,548			1,103
Administration fees		7,118			24,670			247,551			37,134
Professional fees		9,111			8,368			9,238			8,755
Transfer Agent fees, Class A		1,891			1,984			6,523			311
Transfer Agent fees, Class C		135			609			1,603			103
Transfer Agent fees, Class Y		26			299			1,515			156
Transfer Agent fees, Institutional Class		8			62			495			9
Reports to shareholders		5,630			5,759			6,550			7,673
Registration fees, Class A		3,273			3,465			5,829			1,514
Registration fees, Class C		2,718			1,809			2,436			774
Registration fees, Class Y		2,900			1,158			5,991			1,679
Registration fees, Institutional Class		1,278			1,998			6,774			933
Trustees' fees and expenses		3,992			3,992			3,992			3,935
Postage and supplies		2,675			2,272			3,659			2,160
Custodian fees		240			1,533			119,393			11
Compliance fees and expenses		842			804			807			649
Other expenses		593			8,205			9,037			78
Total Expenses		75,574			137,444			1,844,669			235,156
Fees waived by the Administrator		(7,118	)		(24,670	)		(61,870	)		(16,794	)
Fees waived and/or expenses reimbursed by the Advisor		(30,817	)		(29,525	)		—			—
Net Expenses		37,639			83,249			1,782,799			218,362
Net Investment Income (Loss)		15,883			484,151			65,456			73,794
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) from security transactions		21,301			120,001			(1,026,512	)		814,324
Net realized gains (losses) from foreign currency transactions		—			(83,627	)		(145,358	)		—
Net change in unrealized appreciation/depreciation on investments (B)		696,467			(279,297	)		8,271,869			2,896,355
Net change in unrealized appreciation/depreciation on foreign currency transactions		—			36,225			7,051			—
Net Realized and Unrealized Gains (Losses) on Investments		717,768			(206,698	)		7,107,050			3,710,679
Change in Net Assets Resulting from Operations	$	733,651		$	277,453		$	7,172,506		$	3,784,473
(A) Net of foreign tax withholding of:	$	—		$	—		$	67,210		$	9,277
(B) Incudes deferred capital gain country tax of:	$	—		$	—		$	303,940		$	—

See accompanying notes to financial statements.

18

Statements of Operations (Continued)

	Touchstone Global Equity Fund			Touchstone Global Real Estate Fund			Touchstone Healthcare and Biotechnology Fund			Touchstone Intermediate Fixed Income Fund
Investment Income
Dividends from affiliated securities	$	190		$	75		$	545		$	5,782
Dividends from non-affiliated securities (A)		21,710			86,339			128,591			—
Interest (B)		12			—			—			1,627,270
Income from securities loaned		441			221			5,248			—
Total Investment Income		22,353			86,635			134,384			1,633,052
Expenses
Investment advisory fees		20,386			18,576			126,894			208,981
Distribution expenses, Class A		1,476			1,237			29,097			—
Distribution expenses, Class C		566			642			10,502			—
Administration fees		4,797			4,644			25,379			104,492
Professional fees		11,228			10,791			8,770			14,554
Transfer Agent fees, Class A		1,111			205			12,592			—
Transfer Agent fees, Class C		8			10			1,191			—
Transfer Agent fees, Class Y		33			15			—			—
Transfer Agent fees, Institutional Class		8			9			—			1,000
Reports to shareholders		5,586			5,608			2,293			3,088
Registration fees, Class A		2,525			1,219			3,744			—
Registration fees, Class C		960			1,066			1,750			—
Registration fees, Class Y		1,063			965			—			—
Registration fees, Institutional Class		1,013			949			—			678
Trustees' fees and expenses		3,992			3,992			4,493			4,072
Postage and supplies		2,468			2,394			2,941			1,744
Custodian fees		3,480			21,005			2,613			1,007
Compliance fees and expenses		841			841			700			936
Other expenses		5,178			4,470			4,523			11,110
Total Expenses		66,719			78,638			237,482			351,662
Fees waived by the Administrator		(4,797	)		(4,644	)		(25,379	)		(104,492	)
Fees waived and/or expenses reimbursed by the Advisor		(36,266	)		(48,192	)		(7,612	)		(38,283	)
Net Expenses		25,656			25,802			204,491			208,887
Net Investment Income (Loss)		(3,303	)		60,833			(70,107	)		1,424,165
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) from security transactions		253,116			284,595			1,199,771			558,316
Net realized gains (losses) from foreign currency transactions		(3,664	)		(607	)		—			—
Net change in unrealized appreciation/depreciation on investments		201,570			39,448			3,757,718			(3,020,938	)
Net change in unrealized appreciation/depreciation on foreign currency transactions		58			(47	)		—			—
Net Realized and Unrealized Gains (Losses) on Investments		451,080			323,389			4,957,489			(2,462,622	)
Change in Net Assets Resulting from Operations	$	447,777		$	384,222		$	4,887,382		$	(1,038,457	)
(A) Net of foreign tax withholding of:	$	1,448		$	2,259		$	6,502		$	—
(B) Net of foreign tax withholding of:	$	—		$	—		$	—		$	1,388

See accompanying notes to financial statements.

19

Statements of Operations (Continued)

	Touchstone International Fixed Income Fund			Touchstone Large Cap Relative Value Fund			Touchstone Market Neutral Equity Fund			Touchstone Mid Cap Fund
Investment Income
Dividends from affiliated securities	$	354		$	337		$	1,259		$	1,603
Dividends from non-affiliated securities (A)		—			43,391			207,638			867,121
Interest (B)		150,982			—			—			—
Income from securities loaned		—			8			743			14,980
Total Investment Income		151,336			43,736			209,640			883,704
Expenses
Investment advisory fees		26,995			17,488			222,633			489,625
Distribution expenses, Class A		1,601			1,493			847			963
Distribution expenses, Class C		1,998			1,533			935			1,708
Administration fees		9,816			4,996			34,252			122,407
Shareholder servicing fees		—			—			—			312
Professional fees		10,621			7,384			9,228			13,670
Transfer Agent fees, Class A		689			805			377			709
Transfer Agent fees, Class C		19			25			36			203
Transfer Agent fees, Class Y		17			17			247			2,107
Transfer Agent fees, Class Z		—			—			—			945
Transfer Agent fees, Institutional Class		13			17			—			—
Reports to shareholders		5,849			5,664			4,518			6,569
Registration fees, Class A		1,210			1,334			1,622			1,898
Registration fees, Class C		1,150			795			1,029			1,099
Registration fees, Class Y		899			857			1,136			1,027
Registration fees, Class Z		—			—			—			3,682
Registration fees, Institutional Class		814			837			—			—
Trustees' fees and expenses		3,992			3,992			3,992			4,449
Dividend expense on securities sold short		—			—			230,228			—
Postage and supplies		2,090			1,475			2,728			3,147
Custodian fees		2,397			283			10,441			1,437
Compliance fees and expenses		803			799			806			438
Other expenses		3,958			334			2,603			4,064
Total Expenses		74,931			50,128			527,658			660,459
Fees waived by the Administrator		(9,816	)		(4,996	)		(34,252	)		(69,639	)
Fees waived and/or expenses reimbursed by the Advisor		(26,028	)		(21,089	)		(47,293	)		—
Net Expenses		39,087			24,043			446,113			590,820
Net Investment Income (Loss)		112,249			19,693			(236,473	)		292,884
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) from security transactions		112,601			17,081			(1,603,970	)		19,797,750
Net realized gains (losses) from foreign currency transactions		(1,449	)		—			—			—
Net change in unrealized appreciation/depreciation on investments		(241,616	)		756,361			1,050,342			6,107,914
Net change in unrealized appreciation/depreciation on foreign currency transactions		(26,754	)		—			—			—
Net Realized and Unrealized Gains (Losses) on Investments		(157,218	)		773,442			(553,628	)		25,905,664
Change in Net Assets Resulting from Operations	$	(44,969	)	$	793,135		$	(790,101	)	$	26,198,548
(A) Net of foreign tax withholding of:	$	—		$	—		$	399		$	11,666
(B) Net of foreign tax withholding of:	$	2,380		$	—		$	—		$	—

See accompanying notes to financial statements.

20

Statements of Operations (Continued)

	Touchstone Mid Cap Value Fund			Touchstone Premium Yield Equity Fund			Touchstone Sands Capital Select Growth Fund*			Touchstone Short Duration Fixed Income Fund
Investment Income
Dividends from affiliated securities	$	718		$	1,788		$	21,924		$	1,186
Dividends from non-affiliated securities (A)		492,876			899,305			2,146,513			—
Interest		—			—			—			647,315
Income from securities loaned		5,324			—			16,889			—
Total Investment Income		498,918			901,093			2,185,326			648,501
Expenses
Investment advisory fees		199,215			162,047			4,242,721			54,674
Distribution expenses, Class A		1,439			30,555			2,054			—
Distribution expenses, Class C		760			37,290			3,668			—
Administration fees		46,875			46,300			890,415			43,740
Shareholder servicing fees		—			—			779,196			26,267
Professional fees		7,258			8,499			36,561			8,426
Transfer Agent fees, Class A		278			2,153			33			—
Transfer Agent fees, Class C		18			1,694			21			—
Transfer Agent fees, Class Y		37			894			36,750			502
Transfer Agent fees, Class Z		—			—			156,622			9,099
Transfer Agent fees, Institutional Class		8			—			—			—
Reports to shareholders		5,649			5,042			16,774			2,255
Registration fees, Class A		1,388			3,209			248			—
Registration fees, Class C		900			2,744			248			—
Registration fees, Class Y		1,224			3,267			8,817			2,058
Registration fees, Class Z		—			—			24,774			4,019
Registration fees, Institutional Class		813			—			—			—
Trustees' fees and expenses		3,992			4,496			4,500			4,496
Postage and supplies		1,435			1,860			5,930			1,911
Custodian fees		1,484			1,059			5,557			541
Compliance fees and expenses		804			761			485			712
Other expenses		580			1,621			77,608			11,013
Total Expenses		274,157			313,491			6,292,982			169,713
Fees waived by the Administrator		(46,875	)		(25,586	)		(138,086	)		(8,956	)
Fees waived and/or expenses reimbursed by the Advisor		(14,319	)		—			—			—
Net Expenses		212,963			287,905			6,154,896			160,757
Net Investment Income (Loss)		285,955			613,188			(3,969,570	)		487,744
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) from security transactions		1,956,591			612,063			14,085,288			45,769
Net realized gains (losses) from foreign currency transactions		—			322			—			—
Net change in unrealized appreciation/depreciation on investments		6,383,775			4,340,472			136,470,542			(442,400	)
Net change in unrealized appreciation/depreciation on foreign currency transactions		—			7			—			—
Net Realized and Unrealized Gains (Losses) on Investments		8,340,366			4,952,864			150,555,830			(396,631	)
Change in Net Assets Resulting from Operations	$	8,626,321		$	5,566,052		$	146,586,260		$	91,113
(A) Net of foreign tax withholding of:	$	—		$	12,600		$	—		$	—

*  Class A and Class C represent the period from commencement of operations (November 15, 2010) through March 31, 2011.

See accompanying notes to financial statements.

21

Statements of Operations (Continued)

	Touchstone Small Cap Core Fund			Touchstone Small Cap Value Fund*			Touchstone Ultra Short Duration Fixed Income Fund
Investment Income
Dividends from affiliated securities	$	4,124		$	1,794		$	39,787
Dividends from non-affiliated securities		808,068			905,969			—
Interest		—			—			2,679,199
Income from securities loaned		24,322			4,739			—
Total Investment Income		836,514			912,502			2,718,986
Expenses
Investment advisory fees		551,872			303,906			321,834
Distribution expenses, Class A		79,324			1			—
Distribution expenses, Class C		44,124			2			—
Administration fees		129,853			63,981			257,470
Shareholder servicing fees		—			79,946			145,676
Professional fees		8,830			9,883			13,268
Transfer Agent fees, Class A		78,564			—			—
Transfer Agent fees, Class C		3,228			—			—
Transfer Agent fees, Class Y		4,749			—			—
Transfer Agent fees, Class Z		—			18,385			29,973
Transfer Agent fees, Institutional Class		125			—			—
Reports to shareholders		8,391			2,973			3,262
Registration fees, Class A		5,563			—			—
Registration fees, Class C		2,761			—			—
Registration fees, Class Y		5,714			—			—
Registration fees, Class Z		—			7,513			25,372
Registration fees, Institutional Class		4,278			—			—
Trustees' fees and expenses		3,993			4,448			4,449
Postage and supplies		5,833			3,126			2,725
Custodian fees		7,182			1,468			2,057
Compliance fees and expenses		603			664			600
Other expenses		18,882			7,529			13,731
Total Expenses		963,869			503,825			820,417
Fees waived by the Administrator		(129,853	)		(24,103	)		—
Fees waived and/or expenses reimbursed by the Advisor		(11,881	)		—			—
Net Expenses		822,135			479,722			820,417
Net Investment Income (Loss)		14,379			432,780			1,898,569
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) from security transactions		(319,468	)		19,629,264			44,582
Net change in unrealized appreciation/depreciation on investments		23,461,827			(8,084,215	)		(648,002	)
Net Realized and Unrealized Gains (Losses) on Investments		23,142,359			11,545,049			(603,420	)
Change in Net Assets Resulting from Operations	$	23,156,738		$	11,977,829		$	1,295,149

*  Class A, Class C, Class Y and Institutional Class represent the period from commencement of operations (March 1, 2011) through March 31, 2011.

See accompanying notes to financial statements.

22

Statements of Changes in Net Assets

	Touchstone Capital Appreciation Fund						Touchstone Core Plus Fixed Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	15,883		$	29,449		$	484,151		$	465,079
Net realized gains (losses) from security transactions		21,301			188,578			120,001			157,838
Net realized gains (losses) from foreign currency transactions		—			—			(83,627	)		(85,574	)
Net change in unrealized appreciation/depreciation on investments		696,467			(25,684	)		(279,297	)		749,729
Net change in unrealized appreciation/depreciation from foreign currency transactions		—			—			36,225			(36,484	)
Change in Net Assets Resulting from Operations		733,651			192,343			277,453			1,250,588
Distributions to Shareholders
From net investment income, Class A		(9,222	)		—			(62,613	)		(78,223	)
From net investment income, Class C		—			—			(34,923	)		(32,961	)
From net investment income, Class Y		(939	)		(129	)		(19,850	)		(18,976	)
From net investment income, Institutional Class		(25,167	)		(7,574	)		(412,773	)		(366,121	)
From net realized gains, Class A		(87,062	)		—			(19,926	)		—
From net realized gains, Class C		(12,556	)		—			(11,556	)		—
From net realized gains, Class Y		(3,928	)		—			(7,144	)		—
From net realized gains, Institutional Class		(85,089	)		—			(92,475	)		—
Decrease in Net Assets from Distributions to Shareholders		(223,963	)		(7,703	)		(661,260	)		(496,281	)
From Capital Share Transactions
Class A
Proceeds from shares sold		1,175,132			2,826,917			480,934			5,206,942
Reinvested distributions		66,084			—			73,124			49,984
Payments for shares redeemed		(136,340	)		(105,717	)		(2,549,327	)		(568,880	)
Change in Net Assets from Class A Share Transactions		1,104,876			2,721,200			(1,995,269	)		4,688,046
Class C
Proceeds from shares sold		72,910			387,455			638,491			1,874,613
Reinvested distributions		12,030			—			46,054			25,719
Payments for shares redeemed		(961	)		(39,304	)		(110,569	)		(101,511	)
Change in Net Assets from Class C Share Transactions		83,979			348,151			573,976			1,798,821
Class Y
Proceeds from shares sold		1,001			172,799			616,054			964,338
Reinvested distributions		4,867			129			27,627			15,361
Payments for shares redeemed		—			(47,635	)		(630,538	)		(194,457	)
Change in Net Assets from Class Y Share Transactions		5,868			125,293			13,143			785,242
Institutional Class
Proceeds from shares sold		—			2,702,500			5,935,931			15,768,550
Reinvested distributions		110,256			7,574			556,468			292,688
Payments for shares redeemed		—			(2,685	)		(567,100	)		(259,724	)
Change in Net Assets from Institutional Class Share Transactions		110,256			2,707,389			5,925,299			15,801,514
Total Increase (Decrease) in Net Assets		1,814,667			6,086,673			4,133,342			23,827,930
Net Assets
Beginning of period		6,086,673			—			23,827,930			—
End of period	$	7,901,340		$	6,086,673		$	27,961,272		$	23,827,930
Accumulated Net Investment Income (Loss)	$	3,248		$	22,693		$	(128,988	)	$	(82,980	)

See accompanying notes to financial statements.

23

Statements of Changes in Net Assets (Continued)

	Touchstone Emerging Markets Equity Fund						Touchstone Focused Equity Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010 (A)
From Operations
Net investment income (loss)	$	65,456		$	480,915		$	73,794		$	14,018
Net realized gains (losses) from security transactions		(1,026,512	)		361,300			814,324			24,083
Net realized gains (losses) from foreign currency transactions		(145,358	)		(89,588	)		—			—
Net change in unrealized appreciation/depreciation on investments		8,271,869			16,993,167			2,896,355			86,200
Net change in unrealized appreciation/depreciation from foreign currency transactions		7,051			689			—			—
Change in Net Assets Resulting from Operations		7,172,506			17,746,483			3,784,473			124,301
Distributions to Shareholders
From net investment income, Class A		(37,637	)		—			(6,175	)		—
From net investment income, Class C		—			—			(682	)		—
From net investment income, Class Y		(105,853	)		—			—			—
From net investment income, Institutional Class		(412,012	)		—			(29,812	)		—
From net realized gains, Class A		(43,040	)		—			(6,831	)		—
From net realized gains, Class C		(10,387	)		—			(1,492	)		—
From net realized gains, Class Y		(83,966	)		—			(44,364	)		—
From net realized gains, Institutional Class		(267,192	)		—			(6,070	)		—
Decrease in Net Assets from Distributions to Shareholders		(960,087	)		—			(95,426	)		—
From Capital Share Transactions
Class A
Proceeds from shares sold		34,166,021			10,689,819			89,232,671			916,448
Reinvested distributions		76,185			—			12,845			—
Payments for shares redeemed		(9,273,255	)		(1,353,192	)		(2,265,162	)		(137,021	)
Change in Net Assets from Class A Share Transactions		24,968,951			9,336,627			86,980,354			779,427
Class C
Proceeds from shares sold		4,945,431			3,375,452			52,554			191,017
Reinvested distributions		9,846			—			2,174			—
Payments for shares redeemed		(1,434,228	)		(177,973	)		(160	)		(14,936	)
Change in Net Assets from Class C Share Transactions		3,521,049			3,197,479			54,568			176,081
Class Y
Proceeds from shares sold		85,625,546			13,519,919			12,785,911			187,471
Reinvested distributions		185,769			—			1,474			—
Payments for shares redeemed		(5,175,416	)		(789,864	)		(858,136	)		—
Change in Net Assets from Class Y Share Transactions		80,635,899			12,730,055			11,929,249			187,471
Institutional Class
Proceeds from shares sold		69,909,263			115,334,491			—			1,700,000
Reinvested distributions		675,282			—			35,882			—
Payments for shares redeemed		(2,265,500	)		(5,400,950	)		—			(997,308	)
Change in Net Assets from Institutional Class Share Transactions		68,319,045			109,933,541			35,882			702,692
Total Increase (Decrease) in Net Assets		183,657,363			152,944,185			102,689,100			1,969,972
Net Assets
Beginning of period		152,944,185			—			1,969,972			—
End of period	$	336,601,548		$	152,944,185		$	104,659,072		$	1,969,972
Accumulated Net Investment Income (Loss)	$	(97,772	)	$	392,274		$	51,304		$	14,179

^(A) Represents the period from commencement of operations (December 31, 2009) through September 30, 2010.

See accompanying notes to financial statements.

24

Statements of Changes in Net Assets (Continued)

	Touchstone Global Equity Fund						Touchstone Global Real Estate Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	(3,303	)	$	41,332		$	60,833		$	95,911
Net realized gains (losses) from security transactions		253,116			(20,378	)		284,595			138,925
Net realized gains (losses) from foreign currency transactions		(3,664	)		(5,684	)		(607	)		(865	)
Net change in unrealized appreciation/depreciation on investments		201,570			313,249			39,448			318,490
Net change in unrealized appreciation/depreciation from foreign currency transactions		58			345			(47	)		(26	)
Change in Net Assets Resulting from Operations		447,777			328,864			384,222			552,435
Distributions to Shareholders
From net investment income, Class A		(6,391	)		—			(40,586	)		(11,322	)
From net investment income, Class C		—			—			(4,108	)		(2,628	)
From net investment income, Class Y		(1,051	)		—			(4,971	)		(3,504	)
From net investment income, Institutional Class		(31,387	)		(661	)		(126,853	)		(72,747	)
From net realized gains, Class A		(7,311	)		—			(43,479	)		—
From net realized gains, Class C		(1,016	)		—			(5,042	)		—
From net realized gains, Class Y		(1,580	)		—			(5,269	)		—
From net realized gains, Institutional Class		(29,420	)		—			(131,564	)		—
Decrease in Net Assets from Distributions to Shareholders		(78,156	)		(661	)		(361,872	)		(90,201	)
From Capital Share Transactions
Class A
Proceeds from shares sold		500,442			2,163,712			333,006			1,809,940
Reinvested distributions		13,101			—			39,166			4,131
Payments for shares redeemed		(1,787,065	)		(434,302	)		(707,129	)		(918,136	)
Change in Net Assets from Class A Share Transactions		(1,273,522	)		1,729,410			(334,957	)		895,935
Class C
Proceeds from shares sold		—			102,506			—			107,708
Reinvested distributions		1,016			—			9,134			1,801
Payments for shares redeemed		—			(2,578	)		—			(2,579	)
Change in Net Assets from Class C Share Transactions		1,016			99,928			9,134			106,930
Class Y
Proceeds from shares sold		29,001			135,007			—			112,416
Reinvested distributions		2,631			—			10,223			2,338
Payments for shares redeemed		(78	)		(2,585	)		—			(2,587	)
Change in Net Assets from Class Y Share Transactions		31,554			132,422			10,223			112,167
Institutional Class
Proceeds from shares sold		16,500			2,902,660			—			2,728,086
Reinvested distributions		60,807			661			258,417			62,162
Payments for shares redeemed		—			(2,585	)		(8,829	)		(2,805	)
Change in Net Assets from Institutional Class Share Transactions		77,307			2,900,736			249,588			2,787,443
Total Increase (Decrease) in Net Assets		(794,024	)		5,190,699			(43,662	)		4,364,709
Net Assets
Beginning of period		5,190,699			—			4,364,709			—
End of period	$	4,396,675		$	5,190,699		$	4,321,047		$	4,364,709
Accumulated Net Investment Income (Loss)	$	(6,198	)	$	35,934		$	(99,091	)	$	16,594

See accompanying notes to financial statements.

25

Statements of Changes in Net Assets (Continued)

	Touchstone Healthcare and Biotechnology Fund						Touchstone Intermediate Fixed Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	(70,107	)	$	(17,235	)	$	1,424,165		$	3,092,916
Net realized gains (losses) from security transactions		1,199,771			5,376,112			558,316			1,261,788
Net realized gains (losses) from foreign currency transactions		—			55			—			—
Net change in unrealized appreciation/depreciation on investments		3,757,718			(3,524,128	)		(3,020,938	)		4,058,725
Change in Net Assets Resulting from Operations		4,887,382			1,834,804			(1,038,457	)		8,413,429
Distributions to Shareholders
From net investment income, Class A		(45,501	)		—			—			—
From net investment income, Institutional Class		—			—			(1,476,923	)		(3,085,391	)
Decrease in Net Assets from Distributions to Shareholders		(45,501	)		—			(1,476,923	)		(3,085,391	)
From Capital Share Transactions
Class A
Proceeds from shares sold		632,578			3,388,085			—			—
Reinvested distributions		41,684			—			—			—
Payments for shares redeemed		(5,749,532	)		(15,401,735	)		—			—
Change in Net Assets from Class A Share Transactions		(5,075,270	)		(12,013,650	)		—			—
Class C
Proceeds from shares sold		39,986			71,965			—			—
Payments for shares redeemed		(1,113,455	)		(1,246,774	)		—			—
Change in Net Assets from Class C Share Transactions		(1,073,469	)		(1,174,809	)		—			—
Institutional Class
Proceeds from shares sold		—			—			2,576,872			10,603,276
Reinvested distributions		—			—			31,969			70,548
Payments for shares redeemed		—			—			(8,694,497	)		(10,588,435	)
Change in Net Assets from Institutional Class Share Transactions		—			—			(6,085,656	)		85,389
Total Increase (Decrease) in Net Assets		(1,306,858	)		(11,353,655	)		(8,601,036	)		5,413,427
Net Assets
Beginning of period		26,161,599			37,515,254			109,138,409			103,724,982
End of period	$	24,854,741		$	26,161,599		$	100,537,373		$	109,138,409
Accumulated Net Investment Income (Loss)	$	(115,608	)	$	—		$	(45,896	)	$	6,862

See accompanying notes to financial statements.

26

Statements of Changes in Net Assets (Continued)

	Touchstone International Fixed Income Fund						Touchstone Large Cap Relative Value Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	112,249		$	122,984		$	19,693		$	29,177
Net realized gains (losses) from security transactions		112,601			(90,113	)		17,081			1,676
Net realized gains (losses) from foreign currency transactions		(1,449	)		742,740			—			—
Net change in unrealized appreciation/depreciation on investments		(241,616	)		381,935			756,361			333,907
Net change in unrealized appreciation/depreciation from foreign currency transactions		(26,754	)		26,743			—			—
Change in Net Assets Resulting from Operations		(44,969	)		1,184,289			793,135			364,760
Distributions to Shareholders
From net investment income, Class A		(112,877	)		(4,889	)		(5,891	)		(671	)
From net investment income, Class C		(31,399	)		(1,083	)		(495	)		—
From net investment income, Class Y		(37,694	)		(1,666	)		(1,399	)		(375	)
From net investment income, Institutional Class		(643,423	)		(114,989	)		(42,581	)		(12,250	)
From net realized gains, Class A		(7,028	)		—			(238	)		—
From net realized gains, Class C		(1,865	)		—			(120	)		—
From net realized gains, Class Y		(2,365	)		—			(51	)		—
From net realized gains, Institutional Class		(32,587	)		—			(1,372	)		—
Decrease in Net Assets from Distributions to Shareholders		(869,238	)		(122,627	)		(52,147	)		(13,296	)
From Capital Share Transactions
Class A
Proceeds from shares sold		1,182,890			1,245,905			1,192,579			478,479
Reinvested distributions		114,133			3,105			6,129			234
Payments for shares redeemed		(1,432,518	)		(13,119	)		(52,506	)		(20,601	)
Change in Net Assets from Class A Share Transactions		(135,495	)		1,235,891			1,146,202			458,112
Class C
Proceeds from shares sold		130,397			435,129			84,408			224,349
Reinvested distributions		33,565			732			615			—
Payments for shares redeemed		(132,767	)		(61,506	)		—			(5,682	)
Change in Net Assets from Class C Share Transactions		31,195			374,355			85,023			218,667
Class Y
Proceeds from shares sold		859,880			243,298			—			102,690
Reinvested distributions		40,234			1,369			1,450			185
Payments for shares redeemed		(499,906	)		(65,259	)		—			(2,693	)
Change in Net Assets from Class Y Share Transactions		400,208			179,408			1,450			100,182
Institutional Class
Proceeds from shares sold		7,363			6,724,021			—			2,708,680
Reinvested distributions		688,648			93,468			43,953			6,070
Payments for shares redeemed		—			(2,501	)		—			(2,693	)
Change in Net Assets from Institutional Class Share Transactions		696,011			6,814,988			43,953			2,712,057
Total Increase (Decrease) in Net Assets		77,712			9,666,304			2,017,616			3,840,482
Net Assets
Beginning of period		9,666,304			—			3,840,482			—
End of period	$	9,744,016		$	9,666,304		$	5,858,098		$	3,840,482
Accumulated Net Investment Income (Loss)	$	(84,432	)	$	628,712		$	(13,845	)	$	16,828

See accompanying notes to financial statements.

27

Statements of Changes in Net Assets (Continued)

	Touchstone Market Neutral Equity Fund						Touchstone Mid Cap Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	(236,473	)	$	(132,337	)	$	292,884		$	1,008,789
Net realized gains (losses) from security transactions		(1,603,970	)		(448,319	)		19,797,750			23,865,581
Net realized gains (losses) from foreign currency transactions		—			—			—			—
Net change in unrealized appreciation/depreciation on investments		1,050,342			226,121			6,107,914			(6,883,713	)
Change in Net Assets Resulting from Operations		(790,101	)		(354,535	)		26,198,548			17,990,657
Distributions to Shareholders
From net investment income, Class A		—			—			—			(2,244	)
From net investment income, Class Y		—			—			(273,246	)		(1,190,969	)
From net investment income, Class Z		—			—			—			(9,678	)
Decrease in Net Assets from Distributions to Shareholders		—			—			(273,246	)		(1,202,891	)
From Capital Share Transactions
Class A
Proceeds from shares sold		119,948			1,378,205			91,576			315,759
Reinvested distributions		—			—			—			1,943
Payments for shares redeemed		(107,575	)		(742,866	)		(119,590	)		(136,363	)
Change in Net Assets from Class A Share Transactions		12,373			635,339			(28,014	)		181,339
Class C
Proceeds from shares sold		47,000			179,574			172,765			74,942
Payments for shares redeemed		(21,885	)		(7,513	)		(36,484	)		(17,589	)
Change in Net Assets from Class C Share Transactions		25,115			172,061			136,281			57,353
Class Y
Proceeds from shares sold		2,051,000			32,758,376			13,136,042			4,737,552
Reinvested distributions		—			—			10,151			60,646
Payments for shares redeemed		(274,984	)		(27,786	)		(47,477,216	)		(66,295,717	)
Change in Net Assets from Class Y Share Transactions		1,776,016			32,730,590			(34,331,023	)		(61,497,519	)
Class Z
Proceeds from shares sold		—			—			1,068,913			1,292,972
Reinvested distributions		—			—			—			9,404
Payments for shares redeemed		—			—			(280,378	)		(2,500,722	)
Change in Net Assets from Class Z Share Transactions		—			—			788,535			(1,198,346	)
Total Increase (Decrease) in Net Assets		1,023,403			33,183,455			(7,508,919	)		(45,669,407	)
Net Assets
Beginning of period		33,183,455			—			125,079,367			170,748,774
End of period	$	34,206,858		$	33,183,455		$	117,570,448		$	125,079,367
Accumulated Net Investment Income (Loss)	$	(245,638	)	$	(9,165	)	$	205,429		$	185,791

See accompanying notes to financial statements.

28

Statements of Changes in Net Assets (Continued)

	Touchstone Mid Cap Value Fund						Touchstone Premium Yield Equity Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	285,955		$	102,980		$	613,188		$	1,046,941
Net realized gains (losses) from security transactions		1,956,591			238,449			612,063			50,767
Net realized gains (losses) from foreign currency transactions		—			—			322			—
Net change in unrealized appreciation/depreciation on investments		6,383,775			758,442			4,340,472			2,562,610
Net change in unrealized appreciation/depreciation from foreign currency transactions		—			—			7			(7	)
Change in Net Assets Resulting from Operations		8,626,321			1,099,871			5,566,052			3,660,311
Distributions to Shareholders
From net investment income, Class A		(12,618	)		(1,976	)		(400,040	)		(667,836	)
From net investment income, Class C		(399	)		(432	)		(97,524	)		(122,960	)
From net investment income, Class Y		(10,684	)		(2,739	)		(252,953	)		(223,195	)
From net investment income, Institutional Class		(359,244	)		(62,130	)		—			—
From net realized gains, Class A		(8,176	)		—			—			—
From net realized gains, Class C		(1,773	)		—			—			—
From net realized gains, Class Y		(8,159	)		—			—			—
From net realized gains, Institutional Class		(526,560	)		—			—			—
Decrease in Net Assets from Distributions to Shareholders		(927,613	)		(67,277	)		(750,517	)		(1,013,991	)
From Capital Share Transactions
Class A
Proceeds from shares sold		2,828,741			510,831			2,632,170			2,968,118
Reinvested distributions		20,893			1,628			422,951			586,882
Payments for shares redeemed		(42,931	)		(180,663	)		(668,136	)		(2,878,322	)
Change in Net Assets from Class A Share Transactions		2,806,703			331,796			2,386,985			676,678
Class C
Proceeds from shares sold		21,693			115,187			1,360,364			3,646,302
Reinvested distributions		2,172			432			83,298			76,606
Payments for shares redeemed		—			(2,665	)		(1,028,706	)		(575,335	)
Change in Net Assets from Class C Share Transactions		23,865			112,954			414,956			3,147,573
Class Y
Proceeds from shares sold		1,474,348			531,122			6,883,647			11,881,432
Reinvested distributions		19,766			1,817			250,856			168,237
Payments for shares redeemed		(12,651	)		(2,681	)		(11,981,612	)		(1,417,237	)
Change in Net Assets from Class Y Share Transactions		1,481,463			530,258			(4,847,109	)		10,632,432
Institutional Class
Proceeds from shares sold		1,748,896			38,539,982			—			—
Reinvested distributions		918,667			29,266			—			—
Payments for shares redeemed		(1,900	)		(2,672	)		—			—
Change in Net Assets from Institutional Class Share Transactions		2,665,663			38,566,576			—			—
Total Increase (Decrease) in Net Assets		14,676,402			40,574,178			2,770,367			17,103,003
Net Assets
Beginning of period		40,574,178			—			40,851,776			23,748,773
End of period	$	55,250,580		$	40,574,178		$	43,622,143		$	40,851,776
Accumulated Net Investment Income (Loss)	$	(61,990	)	$	35,000		$	(108,999	)	$	28,330

See accompanying notes to financial statements.

29

Statements of Changes in Net Assets (Continued)

	Touchstone Sands Capital Select Growth Fund						Touchstone Short Duration Fixed Income Fund
	Six Months Ended March 31, 2011 (A) (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	(3,969,570	)	$	(3,800,152	)	$	487,744		$	1,260,873
Net realized gains (losses) from security transactions		14,085,288			23,075,415			45,769			91,449
Net change in unrealized appreciation/depreciation on investments		136,470,542			76,755,229			(442,400	)		73,170
Change in Net Assets Resulting from Operations		146,586,260			96,030,492			91,113			1,425,492
Distributions to Shareholders
From net investment income, Class Y		—			—			(13,701	)		(19,058	)
From net investment income, Class Z		—			—			(649,383	)		(1,309,105	)
Decrease in Net Assets from Distributions to Shareholders		—			—			(663,084	)		(1,328,163	)
From Capital Share Transactions
Class A
Proceeds from shares sold		7,219,235			—			—			—
Payments for shares redeemed		(35,618	)		—			—			—
Change in Net Assets from Class A Share Transactions		7,183,617			—			—			—
Class C
Proceeds from shares sold		3,242,425			—			—			—
Payments for shares redeemed		(12,874	)		—			—			—
Change in Net Assets from Class C Share Transactions		3,229,551			—			—			—
Class Y
Proceeds from shares sold		96,261,458			45,593,062			634,287			922,720
Reinvested distributions		—			—			339			10,514
Payments for shares redeemed		(19,863,039	)		(26,763,035	)		(401,805	)		(758,186	)
Change in Net Assets from Class Y Share Transactions		76,398,419			18,830,027			232,821			175,048
Class Z
Proceeds from shares sold		286,162,371			257,169,126			4,583,500			7,512,315
Reinvested distributions		—			—			646,529			1,152,025
Payments for shares redeemed		(101,565,776	)		(127,486,213	)		(6,097,696	)		(9,099,002	)
Change in Net Assets from Class Z Share Transactions		184,596,595			129,682,913			(867,667	)		(434,662	)
Total Increase (Decrease) in Net Assets		417,994,442			244,543,432			(1,206,817	)		(162,285	)
Net Assets
Beginning of period		660,661,319			416,117,887			44,178,311			44,340,596
End of period	$	1,078,655,761		$	660,661,319		$	42,971,494		$	44,178,311
Accumulated Net Investment Income (Loss)	$	(3,969,570	)	$	—		$	(95,619	)	$	79,721

^(A)  Class A and Class C represent the period from commencement of operations (November 15, 2010) through March 31, 2011.

See accompanying notes to financial statements.

30

Statements of Changes in Net Assets (Continued)

	Touchstone Small Cap Core Fund						Touchstone Small Cap Value Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (A) (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	14,379		$	204,546		$	432,780		$	1,786
Net realized gains (losses) from security transactions		(319,468	)		(314,666	)		19,629,264			11,410,624
Net change in unrealized appreciation/depreciation on investments		23,461,827			4,836,454			(8,084,215	)		(3,524,275	)
Change in Net Assets Resulting from Operations		23,156,738			4,726,334			11,977,829			7,888,135
Distributions to Shareholders
From net investment income, Class A		(39,812	)		—			(17	)		—
From net investment income, Class C		—			—			(16	)		—
From net investment income, Class Y		(88,009	)		—			(18	)		—
From net investment income, Class Z		—			—			(593,960	)		—
From net investment income, Institutional Class		(45,245	)		(9,676	)		(18	)		—
From net realized gains, Class A		(1,431	)		—			—			—
From net realized gains, Class C		(178	)		—			—			—
From net realized gains, Class Y		(925	)		—			—			—
From net realized gains, Institutional Class		(332	)		—			—			—
Decrease in Net Assets from Distributions to Shareholders		(175,932	)		(9,676	)		(594,029	)		—
From Capital Share Transactions
Class A
Proceeds from shares sold		29,189,396			57,444,349			2,500			—
Reinvested distributions		39,727			—			17			—
Payments for shares redeemed		(8,413,290	)		(9,088,619	)		—			—
Net Increase (Decrease) in Net Assets from Class A Share Transactions		20,815,833			48,355,730			2,517			—
Class C
Proceeds from shares sold		6,725,209			5,255,017			2,500			—
Reinvested distributions		157			—			16			—
Payments for shares redeemed		(646,515	)		(229,528	)		—			—
Net Increase (Decrease) in Net Assets from Class C Share Transactions		6,078,851			5,025,489			2,516			—
Class Y
Proceeds from shares sold		18,250,121			35,903,813			2,500			—
Reinvested distributions		81,516			—			18			—
Payments for shares redeemed		(4,083,525	)		(4,138,193	)		—			—
Net Increase (Decrease) in Net Assets from Class Y Share Transactions		14,248,112			31,765,620			2,518			—
Class Z
Proceeds from shares sold		—			—			6,702,689			10,847,236
Reinvested distributions		—			—			582,090			—
Payments for shares redeemed		—			—			(21,629,545	)		(38,228,648	)
Change in Net Assets from Class Z Share Transactions		—			—			(14,344,766	)		(27,381,412	)
Institutional Class
Proceeds from shares sold		22,364,907			12,486,385			2,500			—
Reinvested distributions		45,304			9,676			18			—
Payments for shares redeemed		(370,806	)		(3,081,576	)		—			—
Change in Net Assets from Institutional Class Share Transactions		22,039,405			9,414,485			2,518			—
Total Increase (Decrease) in Net Assets		86,163,007			99,277,982			(2,950,897	)		(19,493,277	)
Net Assets
Beginning of period		99,277,982			—			64,552,864			84,046,141
End of period	$	185,440,989		$	99,277,982		$	61,601,967		$	64,552,864
Accumulated Net Investment Income (Loss)	$	9,818		$	168,505		$	(104,488	)	$	56,761

^(A)  Class A, Class C, Class Y and Institutional Class represent the period from commencement of operations (March 1, 2011) through March 31, 2011.

See accompanying notes to financial statements.

31

Statements of Changes in Net Assets (Continued)

	Touchstone Ultra Short Duration Fixed Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
From Operations
Net investment income (loss)	$	1,898,569		$	2,565,502
Net realized gains (losses) from security transactions		44,582			194,688
Net change in unrealized appreciation/depreciation on investments		(648,002	)		606,191
Change in Net Assets Resulting from Operations		1,295,149			3,366,381
Distributions to Shareholders
From net investment income, Class Z		(3,017,905	)		(3,337,850	)
From Capital Share Transactions
Class Z
Proceeds from shares sold		145,522,243			193,844,586
Reinvested distributions		2,605,922			2,696,793
Payments for shares redeemed		(118,278,863	)		(68,472,264	)
Change in Net Assets from Class Z Share Transactions		29,849,302			128,069,115
Total Increase (Decrease) in Net Assets		28,126,546			128,097,646
Net Assets
Beginning of period		236,649,903			108,552,257
End of period	$	264,776,449		$	236,649,903
Accumulated Net Investment Income (Loss)	$	(981,913	)	$	137,423

See accompanying notes to financial statements.

32

Financial Highlights

Touchstone Capital Appreciation Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.61		$	10.00
Income (loss) from investment operations:
Net investment income		0.01			0.03
Net realized and unrealized gains on investments		1.18			0.58
Total from investment operations		1.19			0.61
Less distributions:
Dividends from net investment income		(0.03	)		—
Distributions from net realized gains		(0.31	)		—
Total distributions		(0.34	)		—
Net asset value at end of period	$	11.46		$	10.61
Total return (B)		11.41	% (C)		6.10	%
Net assets at end of period (000s)	$	4,075		$	2,728
Ratio of net expenses to average net assets		1.19	% (D)		1.19	%
Ratio of gross expenses to average net assets		2.15	% (D)		2.38	%
Ratio of net investment income to average net assets		0.30	% (D)		0.38	%
Portfolio turnover rate		14	% (C)		33	%

Touchstone Capital Appreciation Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.53		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.02	)		(0.03	)
Net realized and unrealized gains on investments		1.17			0.56
Total from investment operations		1.15			0.53
Less distributions:
Dividends from net investment income		—			—
Distributions from net realized gains		(0.31	)		—
Total distributions		(0.31	)		—
Net asset value at end of period	$	11.37		$	10.53
Total return (B)		11.09	% (C)		5.30	%
Net assets at end of period (000s)	$	466		$	352
Ratio of net expenses to average net assets		1.94	% (D)		1.94	%
Ratio of gross expenses to average net assets		3.92	% (D)		2.99	%
Ratio of net investment loss to average net assets		(0.45	%) (D)		(0.37	%)
Portfolio turnover rate		14	% (C)		33	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

33

Financial Highlights (Continued)

Touchstone Capital Appreciation Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.63		$	10.00
Income (loss) from investment operations:
Net investment income		0.02			0.06
Net realized and unrealized gains on investments		1.19			0.58
Total from investment operations		1.21			0.64
Less distributions:
Dividends from net investment income		(0.07	)		(0.01	)
Distributions from net realized gains		(0.31	)		—
Total distributions		(0.38	)		(0.01	)
Net asset value at end of period	$	11.46		$	10.63
Total return		11.61	% (B)		6.42	%
Net assets at end of period (000s)	$	148		$	132
Ratio of net expenses to average net assets		0.94	% (C)		0.94	%
Ratio of gross expenses to average net assets		5.68	% (C)		2.20	%
Ratio of net investment income to average net assets		0.57	% (C)		0.62	%
Portfolio turnover rate		14	% (B)		33	%

Touchstone Capital Appreciation Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.62		$	10.00
Income (loss) from investment operations:
Net investment income		0.04			0.09
Net realized and unrealized gains on investments		1.18			0.56
Total from investment operations		1.22			0.65
Less distributions:
Dividends from net investment income		(0.09	)		(0.03	)
Distributions from net realized gains		(0.31	)		—
Total distributions		(0.40	)		(0.03	)
Net asset value at end of period	$	11.44		$	10.62
Total return		11.69	% (B)		6.48	%
Net assets at end of period (000s)	$	3,212		$	2,875
Ratio of net expenses to average net assets		0.79	% (C)		0.79	%
Ratio of gross expenses to average net assets		1.67	% (C)		1.94	%
Ratio of net investment income to average net assets		0.72	% (C)		0.79	%
Portfolio turnover rate		14	% (B)		33	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

34

Financial Highlights (Continued)

Touchstone Core Plus Fixed Income Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.41		$	10.00
Income (loss) from investment operations:
Net investment income		0.17			0.31
Net realized and unrealized gains (losses) on investments		(0.06	)		0.42
Total from investment operations		0.11			0.73
Less distributions:
Dividends from net investment income		(0.20	)		(0.32	)
Distributions from net realized gains		(0.06	)		—
Total distributions		(0.26	)		(0.32	)
Net asset value at end of period	$	10.26		$	10.41
Total return (B)		1.04	% (C)		7.46	%
Net assets at end of period (000s)	$	2,769		$	4,819
Ratio of net expenses to average net assets		0.95	% (D)		0.95	%
Ratio of gross expenses to average net assets		1.46	% (D)		1.60	%
Ratio of net investment income to average net assets		3.56	% (D)		3.36	%
Portfolio turnover rate		61	% (C)		160	%

Touchstone Core Plus Fixed Income Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.40		$	10.00
Income (loss) from investment operations:
Net investment income		0.16			0.24
Net realized and unrealized gains (losses) on investments		(0.09	)		0.41
Total from investment operations		0.07			0.65
Less distributions:
Dividends from net investment income		(0.17	)		(0.25	)
Distributions from net realized gains		(0.06	)		—
Total distributions		(0.23	)		(0.25	)
Net asset value at end of period	$	10.24		$	10.40
Total return (B)		0.62	% (C)		6.63	%
Net assets at end of period (000s)	$	2,409		$	1,868
Ratio of net expenses to average net assets		1.70	% (D)		1.70	%
Ratio of gross expenses to average net assets		2.12	% (D)		2.32	%
Ratio of net investment income to average net assets		2.90	% (D)		2.60	%
Portfolio turnover rate		61	% (C)		160	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

35

Financial Highlights (Continued)

Touchstone Core Plus Fixed Income Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.41		$	10.00
Income (loss) from investment operations:
Net investment income		0.20			0.33
Net realized and unrealized gains (losses) on investments		(0.08	)		0.42
Total from investment operations		0.12			0.75
Less distributions:
Dividends from net investment income		(0.21	)		(0.34	)
Distributions from net realized gains		(0.06	)		—
Total distributions		(0.27	)		(0.34	)
Net asset value at end of period	$	10.26		$	10.41
Total return		1.16	% (B)		7.70	%
Net assets at end of period (000s)	$	804		$	817
Ratio of net expenses to average net assets		0.70	% (C)		0.70	%
Ratio of gross expenses to average net assets		1.18	% (C)		1.36	%
Ratio of net investment income to average net assets		3.79	% (C)		3.58	%
Portfolio turnover rate		61	% (B)		160	%

Touchstone Core Plus Fixed Income Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.41		$	10.00
Income (loss) from investment operations:
Net investment income		0.21			0.35
Net realized and unrealized gains (losses) on investments		(0.08	)		0.43
Total from investment operations		0.13			0.78
Less distributions:
Dividends from net investment income		(0.22	)		(0.37	)
Distributions from net realized gains		(0.06	)		—
Total distributions		(0.28	)		(0.37	)
Net asset value at end of period	$	10.26		$	10.41
Total return		1.26	% (B)		7.92	%
Net assets at end of period (000s)	$	21,979		$	16,325
Ratio of net expenses to average net assets		0.50	% (C)		0.50	%
Ratio of gross expenses to average net assets		0.93	% (C)		1.23	%
Ratio of net investment income to average net assets		4.12	% (C)		3.74	%
Portfolio turnover rate		61	% (B)		160	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

36

Financial Highlights (Continued)

Touchstone Emerging Markets Equity Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	12.68		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		0.03
Net realized and unrealized gains on investments		0.41			2.65
Total from investment operations		0.39			2.68
Less distributions:
Dividends from net investment income		(0.02	)		—
Distributions from net realized gains		(0.02	)		—
Total distributions		(0.04	)		—
Net asset value at end of period	$	13.03		$	12.68
Total return (B)		3.06	% (C)		26.80	%
Net assets at end of period (000s)	$	35,450		$	10,343
Ratio of net expenses to average net assets		1.74	% (D)		1.74	%
Ratio of gross expenses to average net assets		1.74	% (D)		2.25	%
Ratio of net investment income (loss) to average net assets		(0.26	%) (D)		0.76	%
Portfolio turnover rate		12	% (C)		8	%

Touchstone Emerging Markets Equity Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	12.58		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.05	)		(0.00	) (E)
Net realized and unrealized gains on investments		0.38			2.58
Total from investment operations		0.33			2.58
Less distributions:
Dividends from net investment income		—			—
Distributions from net realized gains		(0.02	)		—
Total distributions		(0.02	)		—
Net asset value at end of period	$	12.89		$	12.58
Total return (B)		2.64	% (C)		25.80	%
Net assets at end of period (000s)	$	7,177		$	3,590
Ratio of net expenses to average net assets		2.49	% (D)		2.49	%
Ratio of gross expenses to average net assets		2.54	% (D)		2.99	%
Ratio of net investment loss to average net assets		(1.01	%) (D)		(0.03	%)
Portfolio turnover rate		12	% (C)		8	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

^(E)  Amount rounds to less than $0.005 per share.

See accompanying notes to financial statements.

37

Financial Highlights (Continued)

Touchstone Emerging Markets Equity Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	12.72		$	10.00
Income (loss) from investment operations:
Net investment income		0.01			0.01
Net realized and unrealized gains on investments		0.39			2.71
Total from investment operations		0.40			2.72
Less distributions:
Dividends from net investment income		(0.02	)		—
Distributions from net realized gains		(0.02	)		—
Total distributions		(0.04	)		—
Net asset value at end of period	$	13.08		$	12.72
Total return		3.26	% (B)		27.10	%
Net assets at end of period (000s)	$	95,630		$	13,597
Ratio of net expenses to average net assets		1.43	% (C)		1.49	%
Ratio of gross expenses to average net assets		1.43	% (C)		2.10	%
Ratio of net investment income to average net assets		0.08	% (C)		0.86	%
Portfolio turnover rate		12	% (B)		8	%

Touchstone Emerging Markets Equity Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	12.74		$	10.00
Income (loss) from investment operations:
Net investment income		0.00	(D)		0.05
Net realized and unrealized gains on investments		0.40			2.69
Total from investment operations		0.40			2.74
Less distributions:
Dividends from net investment income		(0.03	)		—
Distributions from net realized gains		(0.02	)		—
Total distributions		(0.05	)		—
Net asset value at end of period	$	13.09		$	12.74
Total return		3.19	% (B)		27.40	%
Net assets at end of period (000s)	$	198,345		$	125,414
Ratio of net expenses to average net assets		1.34	% (C)		1.34	%
Ratio of gross expenses to average net assets		1.42	% (C)		1.74	%
Ratio of net investment income to average net assets		0.14	% (C)		1.26	%
Portfolio turnover rate		12	% (B)		8	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

^(D)  Amount rounds to less than $0.005 per share.

See accompanying notes to financial statements.

38

Financial Highlights (Continued)

Touchstone Focused Equity Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Period Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.95		$	10.00
Income (loss) from investment operations:
Net investment income		0.06			0.02
Net realized and unrealized gains on investments		1.87			0.93
Total from investment operations		1.93			0.95
Less distributions:
Dividends from net investment income		(0.08	)		—
Distributions from net realized gains		(0.09	)		—
Total distributions		(0.17	)		—
Net asset value at end of period	$	12.71		$	10.95
Total return (B)		17.80	% (C)		9.40	% (C)
Net assets at end of period (000s)	$	90,504		$	814
Ratio of net expenses to average net assets		1.20	% (D)		1.20	% (D)
Ratio of gross expenses to average net assets		1.23	% (D)		4.65	% (D)
Ratio of net investment income to average net assets		0.36	% (D)		0.46	% (D)
Portfolio turnover rate		25	% (C)		101	% (C)

Touchstone Focused Equity Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Period Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.88		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.03	)		(0.01	)
Net realized and unrealized gains on investments		1.91			0.89
Total from investment operations		1.88			0.88
Less distributions:
Dividends from net investment income		(0.04	)		—
Distributions from net realized gains		(0.09	)		—
Total distributions		(0.13	)		—
Net asset value at end of period	$	12.63		$	10.88
Total return (B)		17.19	% (C)		8.90	% (C)
Net assets at end of period (000s)	$	274		$	187
Ratio of net expenses to average net assets		1.95	% (D)		1.95	% (D)
Ratio of gross expenses to average net assets		3.25	% (D)		5.45	% (D)
Ratio of net investment loss to average net assets		(0.67	%) (D)		(0.24	%) (D)
Portfolio turnover rate		25	% (C)		101	% (C)

^(A)  Represents the period from commencement of operations (December 31, 2009) through September 30, 2010.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

39

Financial Highlights (Continued)

Touchstone Focused Equity Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Period Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.96		$	10.00
Income (loss) from investment operations:
Net investment income		0.04	(D)		0.04
Net realized and unrealized gains on investments		1.92			0.92
Total from investment operations		1.96			0.96
Less distributions:
Dividends from net investment income		—			—
Distributions from net realized gains		(0.09	)		—
Total distributions		(0.09	)		—
Net asset value at end of period	$	12.83		$	10.96
Total return		17.92	% (B)		9.60	% (B)
Net assets at end of period (000s)	$	12,975		$	201
Ratio of net expenses to average net assets		0.95	% (C)		0.95	% (C)
Ratio of gross expenses to average net assets		1.18	% (C)		4.62	% (C)
Ratio of net investment income to average net assets		0.60	% (C)		0.81	% (C)
Portfolio turnover rate		25	% (B)		101	% (B)

Touchstone Focused Equity Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Period Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.97		$	10.00
Income (loss) from investment operations:
Net investment income		0.04			0.17
Net realized and unrealized gains on investments		1.90			0.80
Total from investment operations		1.94			0.97
Less distributions:
Dividends from net investment income		(0.42	)		—
Distributions from net realized gains		(0.09	)		—
Total distributions		(0.51	)		—
Net asset value at end of period	$	12.40		$	10.97
Total return		18.02	% (B)		9.70	% (B)
Net assets at end of period (000s)	$	906		$	768
Ratio of net expenses to average net assets		0.80	% (C)		0.80	% (C)
Ratio of gross expenses to average net assets		1.71	% (C)		3.66	% (C)
Ratio of net investment income to average net assets		0.47	% (C)		0.99	% (C)
Portfolio turnover rate		25	% (B)		101	% (B)

^(A)  Represents the period from commencement of operations (December 31, 2009) through September 30, 2010.

^(B)  Not annualized.

^(C)  Annualized.

^(D)  Calculated using average shares method.

See accompanying notes to financial statements.

40

Financial Highlights (Continued)

Touchstone Global Equity Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.65		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.03	) (F)		0.04
Net realized and unrealized gains on investments		1.03			0.61
Total from investment operations		1.00			0.65
Less distributions:
Dividends from net investment income		(0.09	)		—
Distributions from net realized gains		(0.10	)		—
Total distributions		(0.19	)		—
Net asset value at end of period	$	11.46		$	10.65
Total return (B)		9.40	% (C)		6.50	%
Net assets at end of period (000s)	$	696		$	1,857
Ratio of net expenses to average net assets		1.34	% (D)		1.34	%
Ratio of gross expenses to average net assets		3.15	% (D)		3.75	%
Ratio of net investment income (loss) to average net assets		(0.51	%) (D)		1.56	%
Portfolio turnover rate		40	% (C)		68	%

Touchstone Global Equity Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.57		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.06	)		0.00	(E)
Net realized and unrealized gains on investments		1.01			0.57
Total from investment operations		0.95			0.57
Less distributions:
Dividends from net investment income		—			—
Distributions from net realized gains		(0.10	)		—
Total distributions		(0.10	)		—
Net asset value at end of period	$	11.42		$	10.57
Total return (B)		9.02	% (C)		5.70	%
Net assets at end of period (000s)	$	115		$	106
Ratio of net expenses to average net assets		2.09	% (D)		2.09	%
Ratio of gross expenses to average net assets		5.17	% (D)		4.28	%
Ratio of net investment income (loss) to average net assets		(1.13	%) (D)		0.02	%
Portfolio turnover rate		40	% (C)		68	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

^(E)  Amount rounds to less than $0.005 per share.

^(F)  Calculated using average shares method.

See accompanying notes to financial statements.

41

Financial Highlights (Continued)

Touchstone Global Equity Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.68		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		0.09
Net realized and unrealized gains on investments		1.03			0.59
Total from investment operations		1.01			0.68
Less distributions:
Dividends from net investment income		(0.07	)		—
Distributions from net realized gains		(0.10	)		—
Total distributions		(0.17	)		—
Net asset value at end of period	$	11.52		$	10.68
Total return		9.56	% (B)		6.70	%
Net assets at end of period (000s)	$	186		$	142
Ratio of net expenses to average net assets		1.09	% (C)		1.09	%
Ratio of gross expenses to average net assets		3.71	% (C)		3.38	%
Ratio of net investment income (loss) to average net assets		(0.11	%) (C)		1.05	%
Portfolio turnover rate		40	% (B)		68	%

Touchstone Global Equity Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	10.69		$	10.00
Income (loss) from investment operations:
Net investment income		0.00	(D)		0.11
Net realized and unrealized gains on investments		1.02			0.58
Total from investment operations		1.02			0.69
Less distributions:
Dividends from net investment income		(0.11	)		(0.00	) (D)
Distributions from net realized gains		(0.10	)		—
Total distributions		(0.21	)		(0.00	)
Net asset value at end of period	$	11.50		$	10.69
Total return		9.54	% (B)		6.93	%
Net assets at end of period (000s)	$	3,400		$	3,086
Ratio of net expenses to average net assets		0.94	% (C)		0.94	%
Ratio of gross expenses to average net assets		2.53	% (C)		3.11	%
Ratio of net investment income to average net assets		0.02	% (C)		1.18	%
Portfolio turnover rate		40	% (B)		68	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

^(D)  Amount rounds to less than $0.005 per share.

See accompanying notes to financial statements.

42

Financial Highlights (Continued)

Touchstone Global Real Estate Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.46		$	10.00
Income (loss) from investment operations:
Net investment income		0.13	(E)		0.36
Net realized and unrealized gains on investments		0.81			1.45
Total from investment operations		0.94			1.81
Less distributions:
Dividends from net investment income		(0.46	)		(0.35	)
Distributions from net realized gains		(0.47	)		—
Total distributions		(0.93	)		(0.35	)
Net asset value at end of period	$	11.47		$	11.46
Total return (B)		8.60	% (C)		18.54	%
Net assets at end of period (000s)	$	540		$	881
Ratio of net expenses to average net assets		1.39	% (D)		1.39	%
Ratio of gross expenses to average net assets		3.61	% (D)		4.27	%
Ratio of net investment income to average net assets		2.26	% (D)		2.94	%
Portfolio turnover rate		61	% (C)		107	%

Touchstone Global Real Estate Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.50		$	10.00
Income (loss) from investment operations:
Net investment income		0.11			0.17
Net realized and unrealized gains on investments		0.79			1.58
Total from investment operations		0.90			1.75
Less distributions:
Dividends from net investment income		(0.37	)		(0.25	)
Distributions from net realized gains		(0.47	)		—
Total distributions		(0.84	)		(0.25	)
Net asset value at end of period	$	11.56		$	11.50
Total return (B)		8.16	% (C)		17.75	%
Net assets at end of period (000s)	$	133		$	123
Ratio of net expenses to average net assets		2.14	% (D)		2.14	%
Ratio of gross expenses to average net assets		5.80	% (D)		4.60	%
Ratio of net investment income to average net assets		1.61	% (D)		1.60	%
Portfolio turnover rate		61	% (C)		107	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

^(E)  Calculated using average shares method.

See accompanying notes to financial statements.

43

Financial Highlights (Continued)

Touchstone Global Real Estate Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.53		$	10.00
Income (loss) from investment operations:
Net investment income		0.16			0.28
Net realized and unrealized gains on investments		0.81			1.58
Total from investment operations		0.97			1.86
Less distributions:
Dividends from net investment income		(0.43	)		(0.33	)
Distributions from net realized gains		(0.47	)		—
Total distributions		(0.90	)		(0.33	)
Net asset value at end of period	$	11.60		$	11.53
Total return		8.76	% (B)		18.90	%
Net assets at end of period (000s)	$	140		$	129
Ratio of net expenses to average net assets		1.14	% (C)		1.14	%
Ratio of gross expenses to average net assets		4.58	% (C)		3.62	%
Ratio of net investment income to average net assets		2.61	% (C)		2.61	%
Portfolio turnover rate		61	% (B)		107	%

Touchstone Global Real Estate Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.61		$	10.00
Income (loss) from investment operations:
Net investment income		0.17			0.29
Net realized and unrealized gains on investments		0.81			1.59
Total from investment operations		0.98			1.88
Less distributions:
Dividends from net investment income		(0.44	)		(0.27	)
Distributions from net realized gains		(0.47	)		—
Total distributions		(0.91	)		(0.27	)
Net asset value at end of period	$	11.68		$	11.61
Total return		8.79	% (B)		19.12	%
Net assets at end of period (000s)	$	3,509		$	3,232
Ratio of net expenses to average net assets		0.99	% (C)		0.99	%
Ratio of gross expenses to average net assets		3.18	% (C)		3.34	%
Ratio of net investment income to average net assets		2.76	% (C)		2.75	%
Portfolio turnover rate		61	% (B)		107	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

44

Financial Highlights (Continued)

Touchstone Healthcare and Biotechnology Fund — Class A

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	13.45		$	12.72		$	15.10		$	18.28		$	15.91		$	16.13
Income (loss) from investment operations:
Net investment income (loss)		(0.03	)		0.01			(0.07	)		(0.11	)		(0.14	)		(0.18	)
Net realized and unrealized gains (losses) on investments		2.90			0.72			(2.31	)		(1.09	)		3.10			0.40
Total from investment operations		2.87			0.73			(2.38	)		(1.20	)		2.96			0.22
Less distributions:
Dividends from net investment income		(0.03	)		—			—			—			—			—
Distributions from net realized gains		—			—			—			(1.65	)		(0.59	)		(0.44	)
Distributions from return of capital		—			—			—			(0.33	)		—			—
Total distributions		(0.03	)		—			—			(1.98	)		(0.59	)		(0.44	)
Net asset value at end of period	$	16.29		$	13.45		$	12.72		$	15.10		$	18.28		$	15.91
Total return (A)		21.35	% (B)		5.74	%		(15.76	%)		(7.82	%)		19.25	%		1.37	%
Net assets at end of period (000's)	$	23,071		$	23,696		$	34,029		$	60,959		$	53,295		$	55,120
Ratio of net expenses to average net assets		1.55	% (C)		1.55	%		1.55	%		1.55	%		1.67	%		1.85	% (D)
Ratio of gross expenses to average net assets		1.80	% (C)		2.13	%		1.91	%		1.73	%		1.80	%		1.85	%
Ratio of net investment income (loss) to average net assets		(0.49	%) (C)		0.02	%		(0.43	%)		(0.72	%)		(0.63	%)		(0.99	%)
Portfolio turnover rate		58	% (B)		180	%		162	%		127	%		156	%		158	%

Touchstone Healthcare and Biotechnology Fund — Class C

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,									Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008			2007 (E)
Net asset value at beginning of period	$	13.06		$	12.44		$	14.90		$	18.19		$	15.98
Income (loss) from investment operations:
Net investment loss		(0.39	)		(0.22	)		(0.17	)		(0.16	)		(0.03	)
Net realized and unrealized gains (losses) on investments		3.12			0.84			(2.29	)		(1.15	)		2.83
Total from investment operations		2.73			0.62			(2.46	)		(1.31	)		2.80
Less distributions:
Distributions from net realized gains		—			—			—			(1.65	)		(0.59	)
Distributions from return of capital		—			—			—			(0.33	)		—
Total distributions		—			—			—			(1.98	)		(0.59	)
Net asset value at end of period	$	15.79		$	13.06		$	12.44		$	14.90		$	18.19
Total return (A)		20.90	% (B)		4.98	%		(16.51	%)		(8.53	%)		18.15	% (B)
Net assets at end of period (000s)	$	1,783		$	2,465		$	3,486		$	5,929		$	1,396
Ratio of net expenses to average net assets		2.30	% (C)		2.30	%		2.30	%		2.30	%		2.23	% (C)
Ratio of gross expenses to average net assets		2.69	% (C)		3.22	%		2.93	%		2.64	%		2.57	% (C)
Ratio of net investment loss to average net assets		(1.21	%) (C)		(0.76	%)		(1.17	%)		(1.46	%)		(1.27	%) (C)
Portfolio turnover rate		58	% (B)		180	%		162	%		127	%		156	% (B)

^(A)  Total returns shown exclude the effect of applicable sales loads.

^(B)  Not annualized.

^(C)  Annualized.

^(D)  The ratio of net expenses to average net assets excludes the effect of fees paid indirectly. If these expense offsets were included, the ratio would have been 1.84%.

^(E)  Represents the period from commencement of operations (November 20, 2006) through September 30, 2007.

See accompanying notes to financial statements.

45

Financial Highlights (Continued)

Touchstone Intermediate Fixed Income Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011		Year Ended September 30,
	(Unaudited)		2010		2009		2008		2007		2006
Net asset value at beginning of period	$	9.16	$	8.73	$	8.90	$	9.51	$	9.58	$	9.94

Income (loss) from investment operations:

Net investment income	0.12		0.25	0.30		0.44		0.45		0.39
Net realized and unrealized gains (losses) on investments	(0.20	)	0.43	(0.17	)	(0.60	)	(0.07	)	(0.12	)
Total from investment operations	(0.08	)	0.68	0.13		(0.16	)	0.38		0.27

Less distributions:

Dividends from net investment income		(0.13	)		(0.25	)		(0.30	)		(0.45	)		(0.45	)		(0.40	)
Distributions from net realized gains		—			—			—			—			—			(0.23	)
Total distributions		(0.13	)		(0.25	)		(0.30	)		(0.45	)		(0.45	)		(0.63	)
Net asset value at end of period	$	8.95		$	9.16		$	8.73		$	8.90		$	9.51		$	9.58
Total return		(0.90	%) (A)		7.92	%		1.44	%		(1.95	%)		4.07	%		2.87	%
Net assets at end of period (000's)	$	100,537		$	109,138		$	103,725		$	15,377		$	19,485		$	21,689
Ratio of net expenses to average net assets		0.40	% (B)		0.40	%		0.52	%		0.85	%		0.87	%		0.91	% (C)
Ratio of gross expenses to average net assets		0.67	% (B)		0.69	%		0.83	%		1.15	%		0.99	%		0.95	%
Ratio of net investment income to average net assets		2.73	% (B)		2.84	%		3.12	%		4.61	%		4.72	%		4.13	%
Portfolio turnover rate		37	% (A)		71	%		125	%		62	%		71	%		62	%

^(A)  Not annualized.

^(B)  Annualized.

^(C)  The ratio of net expenses to average net assets excludes the effect of fees paid indirectly. If these expense offsets were included, the ratio would have been 0.89%.

See accompanying notes to financial statements.

46

Financial Highlights (Continued)

Touchstone International Fixed Income Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.38		$	10.00
Income (loss) from investment operations:
Net investment income		0.08			0.12
Net realized and unrealized gains (losses) on investments		(0.12	)		1.38
Total from investment operations		(0.04	)		1.50
Less distributions:
Dividends from net investment income		(0.89	)		(0.12	)
Distributions from net realized gains		(0.05	)		—
Total distributions		(0.94	)		(0.12	)
Net asset value at end of period	$	10.40		$	11.38
Total return (B)		(0.23	%) (C)		15.15	%
Net assets at end of period (000s)	$	1,026		$	1,319
Ratio of net expenses to average net assets		1.09	% (D)		1.09	%
Ratio of gross expenses to average net assets		1.86	% (D)		2.47	%
Ratio of net investment income to average net assets		2.77	% (D)		1.39	%
Portfolio turnover rate		34	% (C)		160	%

Touchstone International Fixed Income Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.37		$	10.00
Income (loss) from investment operations:
Net investment income		0.06			0.05
Net realized and unrealized gains (losses) on investments		(0.14	)		1.37
Total from investment operations		(0.08	)		1.42
Less distributions:
Dividends from net investment income		(0.85	)		(0.05	)
Distributions from net realized gains		(0.05	)		—
Total distributions		(0.90	)		(0.05	)
Net asset value at end of period	$	10.39		$	11.37
Total return (B)		(0.60	%) (C)		14.29	%
Net assets at end of period (000s)	$	399		$	407
Ratio of net expenses to average net assets		1.84	% (D)		1.84	%
Ratio of gross expenses to average net assets		2.94	% (D)		3.16	%
Ratio of net investment income to average net assets		1.41	% (D)		0.59	%
Portfolio turnover rate		34	% (C)		160	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

47

Financial Highlights (Continued)

Touchstone International Fixed Income Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.37		$	10.00
Income (loss) from investment operations:
Net investment income		0.09	(D)		0.16
Net realized and unrealized gains (losses) on investments		(0.11	)		1.37
Total from investment operations		(0.02	)		1.53
Less distributions:
Dividends from net investment income		(0.91	)		(0.16	)
Distributions from net realized gains		(0.05	)		—
Total distributions		(0.96	)		(0.16	)
Net asset value at end of period	$	10.39		$	11.37
Total return		(0.08	%) (B)		15.41	%
Net assets at end of period (000s)	$	554		$	193
Ratio of net expenses to average net assets		0.84	% (C)		0.84	%
Ratio of gross expenses to average net assets		1.75	% (C)		2.50	%
Ratio of net investment income to average net assets		1.81	% (C)		1.52	%
Portfolio turnover rate		34	% (B)		160	%

Touchstone International Fixed Income Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.37		$	10.00
Income (loss) from investment operations:
Net investment income		0.11			0.17
Net realized and unrealized gains (losses) on investments		(0.13	)		1.37
Total from investment operations		(0.02	)		1.54
Less distributions:
Dividends from net investment income		(0.91	)		(0.17	)
Distributions from net realized gains		(0.05	)		—
Total distributions		(0.96	)		(0.17	)
Net asset value at end of period	$	10.39		$	11.37
Total return		(0.01	%) (B)		15.59	%
Net assets at end of period (000s)	$	7,766		$	7,746
Ratio of net expenses to average net assets		0.69	% (C)		0.69	%
Ratio of gross expenses to average net assets		1.38	% (C)		1.64	%
Ratio of net investment income to average net assets		2.28	% (C)		1.67	%
Portfolio turnover rate		34	% (B)		160	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

^(D)  Calculated using average shares method.

See accompanying notes to financial statements.

48

Financial Highlights (Continued)

Touchstone Large Cap Relative Value Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.11		$	10.00
Income (loss) from investment operations:
Net investment income		0.03	(C)		0.05
Net realized and unrealized gains on investments		2.02			1.08
Total from investment operations		2.05			1.13
Less distributions:
Dividends from net investment income		(0.04	)		(0.02	)
Distributions from net realized gains		(0.01	)		—
Total distributions		(0.05	)		(0.02	)
Net asset value at end of period	$	13.11		$	11.11
Total return (B)		18.45	% (D)		11.34	%
Net assets at end of period (000s)	$	1,776		$	476
Ratio of net expenses to average net assets		1.19	% (E)		1.19	%
Ratio of gross expenses to average net assets		2.34	% (E)		3.22	%
Ratio of net investment income to average net assets		0.49	% (E)		0.52	%
Portfolio turnover rate		1	% (D)		2	%

Touchstone Large Cap Relative Value Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.05		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.01	) (C)		(0.02	)
Net realized and unrealized gains on investments		2.02			1.07
Total from investment operations		2.01			1.05
Less distributions:
Dividends from net investment income		(0.02	)		—
Distributions from net realized gains		(0.01	)		—
Total distributions		(0.03	)		—
Net asset value at end of period	$	13.03		$	11.05
Total return (B)		18.14	% (D)		10.50	%
Net assets at end of period (000s)	$	365		$	235
Ratio of net expenses to average net assets		1.94	% (E)		1.94	%
Ratio of gross expenses to average net assets		3.23	% (E)		3.69	%
Ratio of net investment loss to average net assets		(0.19	%) (E)		(0.24	%)
Portfolio turnover rate		1	% (D)		2	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Calculated using average shares method.

^(D)  Not annualized.

^(E)  Annualized.

See accompanying notes to financial statements.

49

Financial Highlights (Continued)

Touchstone Large Cap Relative Value Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.12		$	10.00
Income (loss) from investment operations:
Net investment income		0.05			0.09
Net realized and unrealized gains on investments		2.03			1.07
Total from investment operations		2.08			1.16
Less distributions:
Dividends from net investment income		(0.14	)		(0.04	)
Distributions from net realized gains		(0.01	)		—
Total distributions		(0.15	)		(0.04	)
Net asset value at end of period	$	13.05		$	11.12
Total return		18.70	% (B)		11.58	%
Net assets at end of period (000s)	$	132		$	112
Ratio of net expenses to average net assets		0.94	% (C)		0.94	%
Ratio of gross expenses to average net assets		3.08	% (C)		2.77	%
Ratio of net investment income to average net assets		0.83	% (C)		0.78	%
Portfolio turnover rate		1	% (B)		2	%

Touchstone Large Cap Relative Value Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.13		$	10.00
Income (loss) from investment operations:
Net investment income		0.06			0.10
Net realized and unrealized gains on investments		2.03			1.08
Total from investment operations		2.09			1.18
Less distributions:
Dividends from net investment income		(0.16	)		(0.05	)
Distributions from net realized gains		(0.01	)		—
Total distributions		(0.17	)		(0.05	)
Net asset value at end of period	$	13.05		$	11.13
Total return		18.75	% (B)		11.76	%
Net assets at end of period (000s)	$	3,584		$	3,018
Ratio of net expenses to average net assets		0.79	% (C)		0.79	%
Ratio of gross expenses to average net assets		1.73	% (C)		2.48	%
Ratio of net investment income to average net assets		0.98	% (C)		0.93	%
Portfolio turnover rate		1	% (B)		2	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

50

Financial Highlights (Continued)

Touchstone Market Neutral Equity Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	9.73		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.08	)		(0.13	)
Net realized and unrealized losses on investments		(0.15	)		(0.14	)
Total from investment operations		(0.23	)		(0.27	)
Net asset value at end of period	$	9.50		$	9.73
Total return (B)		(2.36	%) (C)		(2.70	%)
Net assets at end of period (000s)	$	605		$	610
Ratio of net expenses to average net assets (including dividend expense on securities sold short)		2.75	% (D)		2.79	%
Ratio of net expenses to average net assets (excluding dividend expense on securities sold short)		1.50	% (D)		1.61	%
Ratio of gross expenses to average net assets (including dividend expense on securities sold short)		3.78	% (D)		3.89	%
Ratio of gross expenses to average net assets (excluding dividend expense on securities sold short)		2.53	% (D)		2.70	%
Ratio of net investment loss to average net assets		(1.54	%) (D)		(1.38	%)
Portfolio turnover rate		61	% (C)		377	%

Touchstone Market Neutral Equity Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	9.66		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.10	)		(0.16	)
Net realized and unrealized losses on investments		(0.16	)		(0.18	)
Total from investment operations		(0.26	)		(0.34	)
Net asset value at end of period	$	9.40		$	9.66
Total return (B)		(2.69	%) (C)		(3.40	%)
Net assets at end of period (000s)	$	187		$	168
Ratio of net expenses to average net assets (including dividend expense on securities sold short)		3.60	% (D)		3.40	%
Ratio of net expenses to average net assets (excluding dividend expense on securities sold short)		2.25	% (D)		2.37	%
Ratio of gross expenses to average net assets (including dividend expense on securities sold short)		5.19	% (D)		4.48	%
Ratio of gross expenses to average net assets (excluding dividend expense on securities sold short)		3.84	% (D)		3.44	%
Ratio of net investment loss to average net assets		(2.37	%) (D)		(2.18	%)
Portfolio turnover rate		61	% (C)		377	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

51

Financial Highlights (Continued)

Touchstone Market Neutral Equity Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	9.75		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.07	)		(0.04	)
Net realized and unrealized losses on investments		(0.14	)		(0.21	)
Total from investment operations		(0.21	)		(0.25	)
Net asset value at end of period	$	9.54		$	9.75
Total return		(2.15	%) (B)		(2.50	%)
Net assets at end of period (000s)	$	33,414		$	32,406
Ratio of net expenses to average net assets (including dividend expense on securities sold short)		2.60	% (C)		2.48	%
Ratio of net expenses to average net assets (excluding dividend expense on securities sold short)		1.25	% (C)		1.38	%
Ratio of gross expenses to average net assets (including dividend expense on securities sold short)		3.05	% (C)		3.39	%
Ratio of gross expenses to average net assets (excluding dividend expense on securities sold short)		1.71	% (C)		2.29	%
Ratio of net investment loss to average net assets		(1.37	%) (C)		(1.15	%)
Portfolio turnover rate		61	% (B)		377	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

52

Financial Highlights (Continued)

Touchstone Mid Cap Fund — Class A

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,									Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008			2007 (A)
Net asset value at beginning of period	$	12.67		$	11.20		$	13.07		$	17.86		$	18.14
Income (loss) from investment operations:
Net investment income (loss)		0.02	(F)		0.29			0.04			(0.02	)		(0.00	) (B)
Net realized and unrealized gains (losses) on investments		2.97			1.24			(1.85	)		(4.60	)		(0.28	)
Total from investment operations		2.99			1.53			(1.81	)		(4.62	)		(0.28	)
Less distributions:
Dividends from net investment income		—			(0.06	)		(0.03	)		—			—
Distributions from net realized gains		—			—			(0.03	)		(0.17	)		—
Total distributions		—			(0.06	)		(0.06	)		(0.17	)		—
Net asset value at end of period	$	15.66		$	12.67		$	11.20		$	13.07		$	17.86
Total return (C)		23.60	% (D)		13.72	%		(13.81	%)		(26.11	%)		(1.54	%) (D)
Net assets at end of period (000s)	$	820		$	685		$	453		$	159		$	210
Ratio of net expenses to average net assets		1.21	% (E)		1.21	%		1.15	%		1.15	%		0.94	% (E)
Ratio of gross expenses to average net assets		1.98	% (E)		2.84	%		3.84	%		4.09	%		14.21	% (E)
Ratio of net investment income (loss) to average net assets		0.23	% (E)		0.34	%		0.39	%		(0.16	%)		(0.09	%) (E)
Portfolio turnover rate		58	% (D)		132	%		187	%		157	%		193	% (D)

Touchstone Mid Cap Fund — Class C

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,									Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008			2007 (A)
Net asset value at beginning of period	$	12.58		$	11.19		$	13.12		$	17.84		$	18.14
Loss from investment operations:
Net investment loss		(0.01	)		(0.04	)		(0.03	)		(0.15	)		(0.02	)
Net realized and unrealized gains (losses) on investments		2.92			1.43			(1.87	)		(4.40	)		(0.28	)
Total from investment operations		2.91			1.39			(1.90	)		(4.55	)		(0.30	)
Less distributions:
Distributions from net realized gains		—			—			(0.03	)		(0.17	)		—
Net asset value at end of period	$	15.49		$	12.58		$	11.19		$	13.12		$	17.84
Total return (C)		23.13	% (D)		12.42	%		(14.47	%)		(25.74	%)		(1.65	%) (D)
Net assets at end of period (000s)	$	456		$	249		$	169		$	30		$	36
Ratio of net expenses to average net assets		1.96	% (E)		1.94	%		1.90	%		1.90	%		1.35	% (E)
Ratio of gross expenses to average net assets		2.81	% (E)		4.57	%		6.99	%		31.40	%		28.68	% (E)
Ratio of net investment loss to average net assets		(0.53	%) (E)		(0.40	%)		(0.38	%)		(0.91	%)		(0.51	%) (E)
Portfolio turnover rate		58	% (D)		132	%		187	%		157	%		193	% (D)

^(A)  Represents the period from commencement of operations (May 14, 2007) through September 30, 2007.

^(B)  Amount rounds to less than $0.005 per share.

^(C)  Total returns shown exclude the effect of applicable sales loads.

^(D)  Not annualized.

^(E)  Annualized.

^(F)  Calculated using average shares method.

See accompanying notes to financial statements.

53

Financial Highlights (Continued)

Touchstone Mid Cap Fund — Class Y

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	12.68		$	11.25		$	13.14		$	17.91		$	15.28		$	15.36
Income (loss) from investment operations:
Net investment income		0.04			0.08			0.07			0.01			0.11			0.04
Net realized and unrealized gains (losses) on investments		2.96			1.44			(1.88	)		(4.61	)		2.65			1.00
Total from investment operations		3.00			1.52			(1.81	)		(4.60	)		2.76			1.04
Less distributions:
Dividends from net investment income		(0.03	)		(0.09	)		(0.05	)		—			(0.13	)		(0.03	)
Distributions from net realized gains		—			—			(0.03	)		(0.17	)		—			(1.09	)
Total distributions		(0.03	)		(0.09	)		(0.08	)		(0.17	)		(0.13	)		(1.12	)
Net asset value at end of period	$	15.65		$	12.68		$	11.25		$	13.14		$	17.91		$	15.28
Total return		23.70	% (A)		13.58	%		(13.68	%)		(25.92	%)		18.13	%		7.10	%
Net assets at end of period (000s)	$	114,721		$	123,493		$	168,313		$	422,356		$	482,047		$	87,032
Ratio of net expenses to average net assets		0.96	% (B)		0.94	%		0.90	%		0.90	%		0.90	%		0.91	% (C)
Ratio of gross expenses to average net assets		1.06	% (B)		1.07	%		1.05	%		1.03	%		1.06	%		1.81	%
Ratio of net investment income to average net assets		0.48	% (B)		0.71	%		0.61	%		0.09	%		0.39	%		0.82	%
Portfolio turnover rate		58	% (A)		132	%		187	%		157	%		193	%		323	%

Touchstone Mid Cap Fund — Class Z

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,												Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008			2007			2006 (D)
Net asset value at beginning of period	$	12.59		$	11.18		$	13.05		$	17.85		$	15.26		$	16.73
Income (loss) from investment operations:
Net investment income (loss)		0.02			0.02			0.03			(0.08	)		0.09			0.01
Net realized and unrealized gains (losses) on investments		2.96			1.45			(1.84	)		(4.55	)		2.62			(1.48	)
Total from investment operations		2.98			1.47			(1.81	)		(4.63	)		2.71			(1.47	)
Less distributions:
Dividends from net investment income		—			(0.06	)		(0.03	)		—			(0.12	)		—
Distributions from net realized gains		—			—			(0.03	)		(0.17	)		—			—
Total distributions		—			(0.06	)		(0.06	)		(0.17	)		(0.12	)		—
Net asset value at end of period	$	15.57		$	12.59		$	11.18		$	13.05		$	17.85		$	15.26
Total return		23.59	% (A)		13.20	%		(13.83	%)		(26.18	%)		17.84	%		(8.79	%) (A)
Net assets at end of period (000s)	$	1,574		$	652		$	1,814		$	3,267		$	15,203		$	350
Ratio of net expenses to average net assets		1.21	% (B)		1.19	%		1.15	%		1.15	%		1.14	%		1.16	% (B)(E)
Ratio of gross expenses to average net assets		2.61	% (B)		2.14	%		2.22	%		1.48	%		1.25	%		1.82	% (B)
Ratio of net investment income (loss) to average net assets		0.25	% (B)		0.45	%		0.39	%		(0.27	%)		0.12	%		0.65	% (B)
Portfolio turnover rate		58	% (A)		132	%		187	%		157	%		193	%		323	% (A)

^(A)  Not annualized

^(B)  Annualized.

^(C)  The ratio of net expenses to average net assets excludes the effect of fees paid indirectly. If these expense offsets were included, the ratio would have been 0.90%.

^(D)  Represents the period from commencement of operations (April 24, 2006) through September 30, 2006.

^(E)  The ratio of net expenses to average net assets excludes the effect of fees paid indirectly. If these expense offsets were included, the ratio would have been 1.15%.

See accompanying notes to financial statements.

54

Financial Highlights (Continued)

Touchstone Mid Cap Value Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.76		$	10.00
Income (loss) from investment operations:
Net investment income		0.04			0.12
Net realized and unrealized gains on investments		2.36			1.74
Total from investment operations		2.40			1.86
Less distributions:
Dividends from net investment income		(0.08	)		(0.10	)
Distributions from net realized gains		(0.16	)		—
Total distributions		(0.24	)		(0.10	)
Net asset value at end of period	$	13.92		$	11.76
Total return (B)		20.54	% (C)		18.70	%
Net assets at end of period (000s)	$	3,305		$	345
Ratio of net expenses to average net assets		1.29	% (D)		1.29	%
Ratio of gross expenses to average net assets		1.69	% (D)		3.07	%
Ratio of net investment income to average net assets		1.19	% (D)		1.07	%
Portfolio turnover rate		29	% (C)		45	%

Touchstone Mid Cap Value Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.74		$	10.00
Income (loss) from investment operations:
Net investment income		0.01			0.03
Net realized and unrealized gains on investments		2.33			1.75
Total from investment operations		2.34			1.78
Less distributions:
Dividends from net investment income		(0.03	)		(0.04	)
Distributions from net realized gains		(0.16	)		—
Total distributions		(0.19	)		(0.04	)
Net asset value at end of period	$	13.89		$	11.74
Total return (B)		20.06	% (C)		17.88	%
Net assets at end of period (000s)	$	181		$	132
Ratio of net expenses to average net assets		2.04	% (D)		2.04	%
Ratio of gross expenses to average net assets		3.34	% (D)		3.86	%
Ratio of net investment income to average net assets		0.09	% (D)		0.27	%
Portfolio turnover rate		29	% (C)		45	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

55

Financial Highlights (Continued)

Touchstone Mid Cap Value Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.79		$	10.00
Income (loss) from investment operations:
Net investment income		0.05			0.14
Net realized and unrealized gains on investments		2.37			1.76
Total from investment operations		2.42			1.90
Less distributions:
Dividends from net investment income		(0.09	)		(0.11	)
Distributions from net realized gains		(0.16	)		—
Total distributions		(0.25	)		(0.11	)
Net asset value at end of period	$	13.96		$	11.79
Total return		20.68	% (B)		19.07	%
Net assets at end of period (000s)	$	2,221		$	589
Ratio of net expenses to average net assets		1.04	% (C)		1.04	%
Ratio of gross expenses to average net assets		1.38	% (C)		3.19	%
Ratio of net investment income to average net assets		1.28	% (C)		1.40	%
Portfolio turnover rate		29	% (B)		45	%

Touchstone Mid Cap Value Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.83		$	10.00
Income (loss) from investment operations:
Net investment income		0.08			0.10
Net realized and unrealized gains on investments		2.35			1.82
Total from investment operations		2.43			1.92
Less distributions:
Dividends from net investment income		(0.10	)		(0.09	)
Distributions from net realized gains		(0.16	)		—
Total distributions		(0.26	)		(0.09	)
Net asset value at end of period	$	14.00		$	11.83
Total return		20.79	% (B)		19.25	%
Net assets at end of period (000s)	$	49,544		$	39,509
Ratio of net expenses to average net assets		0.89	% (C)		0.89	%
Ratio of gross expenses to average net assets		1.14	% (C)		1.93	%
Ratio of net investment income to average net assets		1.22	% (C)		1.66	%
Portfolio turnover rate		29	% (B)		45	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

56

Financial Highlights (Continued)

Touchstone Premium Yield Equity Fund — Class A

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,						Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008 (A)
Net asset value at beginning of period	$	6.48		$	5.93		$	7.56		$	10.00
Income (loss) from investment operations:
Net investment income		0.09			0.21			0.22			0.33
Net realized and unrealized gains (losses) on investments		0.73			0.54			(1.64	)		(2.44	)
Total from investment operations		0.82			0.75			(1.42	)		(2.11	)
Less distributions:
Dividends from net investment income		(0.11	)		(0.20	)		(0.21	)		(0.32	)
Distributions from return of capital		—			—			—			(0.01	)
Total distributions		(0.11	)		(0.20	)		(0.21	)		(0.33	)
Net asset value at end of period	$	7.19		$	6.48		$	5.93		$	7.56
Total return (B)		12.76	% (C)		12.82	%		(18.40	%)		(21.48	%) (C)
Net assets at end of period (000s)	$	27,347		$	22,441		$	19,879		$	19,411
Ratio of net expenses to average net assets		1.20	% (D)		1.20	%		1.20	%		1.20	% (D)
Ratio of gross expenses to average net assets		1.30	% (D)		1.40	%		1.55	%		1.53	% (D)
Ratio of net investment income to average net assets		2.69	% (D)		3.30	%		3.97	%		4.68	% (D)
Portfolio turnover rate		34	% (C)		29	%		30	%		181	% (C)

Touchstone Premium Yield Equity Fund — Class C

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,						Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008 (A)
Net asset value at beginning of period	$	6.49		$	5.93		$	7.56		$	10.00
Income (loss) from investment operations:
Net investment income		0.07			0.16			0.10			0.29
Net realized and unrealized gains (losses) on investments		0.71			0.55			(1.55	)		(2.45	)
Total from investment operations		0.78			0.71			(1.45	)		(2.16	)
Less distributions:
Dividends from net investment income		(0.09	)		(0.15	)		(0.18	)		(0.27	)
Distributions from return of capital		—			—			—			(0.01	)
Total distributions		(0.09	)		(0.15	)		(0.18	)		(0.28	)
Net asset value at end of period	$	7.18		$	6.49		$	5.93		$	7.56
Total return (B)		12.08	% (C)		12.11	%		(18.96	%)		(21.95	%) (C)
Net assets at end of period (000s)	$	8,046		$	6,870		$	3,319		$	567
Ratio of net expenses to average net assets		1.95	% (D)		1.95	%		1.95	%		1.94	% (D)
Ratio of gross expenses to average net assets		2.12	% (D)		2.23	%		3.08	%		5.31	% (D)
Ratio of net investment income to average net assets		1.94	% (D)		2.60	%		2.80	%		3.93	% (D)
Portfolio turnover rate		34	% (C)		29	%		30	%		181	% (C)

^(A)  Represents the period from commencement of operations (December 3, 2007) through September 30, 2008.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

57

Financial Highlights (Continued)

Touchstone Premium Yield Equity Fund — Class Y

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,						Period Ended Sept. 30,
	(Unaudited)			2010			2009			2008 (A)
Net asset value at beginning of period	$	6.47		$	5.92		$	7.55		$	8.30
Income (loss) from investment operations:
Net investment income		0.08			0.22			0.22			0.04
Net realized and unrealized gains (losses) on investments		0.74			0.54			(1.62	)		(0.73	)
Total from investment operations		0.82			0.76			(1.40	)		(0.69	)
Less distributions:
Dividends from net investment income		(0.12	)		(0.21	)		(0.23	)		(0.05	)
Distributions from return of capital		—			—			—			(0.01	)
Total distributions		(0.12	)		(0.21	)		(0.23	)		(0.06	)
Net asset value at end of period	$	7.17		$	6.47		$	5.92		$	7.55
Total return		12.74	% (B)		13.14	%		(18.22	%)		(8.37	%) (B)
Net assets at end of period (000s)	$	8,230		$	11,540		$	551		$	2
Ratio of net expenses to average net assets		0.95	% (C)		0.95	%		0.95	%		0.90	% (C)
Ratio of gross expenses to average net assets		1.06	% (C)		1.53	%		13.70	%		453.70	% (C)
Ratio of net investment income to average net assets		2.94	% (C)		3.77	%		2.97	%		3.16	% (C)
Portfolio turnover rate		34	% (B)		29	%		30	%		181	% (B)

^(A)  Represents the period from commencement of operations (August 12, 2008) through September 30, 2008.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

58

Financial Highlights (Continued)

Touchstone Sands Capital Select Growth Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Period Ended March 31, 2011 (A) (Unaudited)
Net asset value at beginning of period	$	9.39
Income (loss) from investment operations:
Net investment loss		(0.01	)
Net realized and unrealized gains (losses) on investments		1.06
Total from investment operations		1.05
Net asset value at end of period	$	10.44
Total return (B)		11.18	% (C)
Net assets at end of period (000s)	$	7,281
Ratio of net expenses to average net assets		1.42	% (D)
Ratio of gross expenses to average net assets		1.44	% (D)
Ratio of net investment loss to average net assets		(0.94	%) (D)
Portfolio turnover rate		12	% (C)

Touchstone Sands Capital Select Growth Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Period Ended March 31, 2011 (A) (Unaudited)
Net asset value at beginning of period	$	9.39
Income (loss) from investment operations:
Net investment loss		(0.02	)
Net realized and unrealized gains (losses) on investments		1.05
Total from investment operations		1.03
Net asset value at end of period	$	10.42
Total return (B)		10.97	% (C)
Net assets at end of period (000s)	$	3,237
Ratio of net expenses to average net assets		2.16	% (D)
Ratio of gross expenses to average net assets		2.23	% (D)
Ratio of net investment loss to average net assets		(1.67	%) (D)
Portfolio turnover rate		12	% (C)

^(A)  Represents the period from commencement of operations (November 15, 2010) through March 31, 2011.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

59

Financial Highlights (Continued)

Touchstone Sands Capital Select Growth Fund — Class Y

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	8.83		$	7.34		$	6.86		$	9.15		$	7.60		$	7.81
Income (loss) from investment operations:
Net investment loss		(0.08	)		(0.07	)		(0.03	)		(0.06	)		(0.05	)		(0.06	)
Net realized and unrealized gains (losses) on investments		1.86			1.56			0.51			(2.23	)		1.60			(0.15	)
Total from investment operations		1.78			1.49			0.48			(2.29	)		1.55			(0.21	)
Net asset value at end of period	$	10.61		$	8.83		$	7.34		$	6.86		$	9.15		$	7.60
Total return		20.02	% (A)		20.44	%		7.00	%		(25.03	%)		20.39	%		(2.69	%)
Net assets at end of period (000s)	$	223,673		$	120,333		$	82,918		$	130,920		$	213,672		$	182,001
Ratio of net expenses to average net assets		1.20	% (B)		1.22	%		0.98	%		1.16	%		1.03	%		1.10	%
Ratio of gross expenses to average net assets		1.24	% (B)		1.28	%		1.05	%		1.19	%		1.03	%		1.23	%
Ratio of net investment loss to average net assets		(0.71	%) (B)		(0.52	%)		(0.48	%)		(0.59	%)		(0.67	%)		(0.74	%)
Portfolio turnover rate		12	% (A)		27	%		50	%		39	%		24	%		24	%

Touchstone Sands Capital Select Growth Fund — Class Z

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	8.70		$	7.24		$	6.79		$	9.08		$	7.57		$	7.80
Income (loss) from investment operations:
Net investment loss		(0.03	)		(0.04	)		(0.04	)		(0.06	)		(0.09	)		(0.05	)
Net realized and unrealized gains (losses) on investments		1.77			1.50			0.49			(2.23	)		1.60			(0.18	)
Total from investment operations		1.74			1.46			0.45			(2.29	)		1.51			(0.23	)
Net asset value at end of period	$	10.44		$	8.70		$	7.24		$	6.79		$	9.08		$	7.57
Total return		20.00	% (A)		20.17	%		6.63	%		(25.22	%)		19.95	%		(2.95	%)
Net assets at end of period (000s)	$	844,465		$	540,329		$	333,200		$	363,955		$	380,025		$	365,390
Ratio of net expenses to average net assets		1.42	% (B)		1.47	%		1.23	%		1.41	%		1.29	%		1.35	%
Ratio of gross expenses to average net assets		1.45	% (B)		1.53	%		1.32	%		1.43	%		1.35	%		1.48	%
Ratio of net investment loss to average net assets		(0.93	%) (B)		(0.79	%)		(0.74	%)		(0.85	%)		(0.92	%)		(0.99	%)
Portfolio turnover rate		12	% (A)		27	%		50	%		39	%		24	%		24	%

^(A)  Not annualized.

^(B)  Annualized.

See accompanying notes to financial statements.

60

Financial Highlights (Continued)

Touchstone Short Duration Fixed Income Fund — Class Y

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010			Period Ended Sept. 30, 2009 (A)
Net asset value at beginning of period	$	9.97		$	9.95		$	9.79
Income from investment operations:
Net investment income		0.12			0.32			0.13
Net realized and unrealized gains (losses) on investments		(0.09	)		0.03			0.16
Total from investment operations		0.03			0.35			0.29
Less distributions:
Dividends from net investment income		(0.16	)		(0.33	)		(0.13	)
Net asset value at end of period	$	9.84		$	9.97		$	9.95
Total return		0.32	% (B)		3.61	%		3.02	% (B)
Net assets at end of period (000's)	$	988		$	767		$	592
Ratio of net expenses to average net assets		0.49	% (C)		0.49	%		0.48	% (C)
Ratio of gross expenses to average net assets		1.19	% (C)		3.98	%		1.49	% (C)
Ratio of net investment income to average net assets		2.48	% (C)		3.22	%		3.03	% (C)
Portfolio turnover rate		21	% (B)		45	%		79	% (B)

Touchstone Short Duration Fixed Income Fund — Class Z

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.96		$	9.94		$	9.59		$	9.81		$	9.76		$	9.87
Income (loss) from investment operations:
Net investment income		0.11			0.29			0.32			0.45			0.45			0.38
Net realized and unrealized gains (losses) on investments		(0.08	)		0.04			0.35			(0.22	)		0.05			(0.07	)
Total from investment operations		0.03			0.33			0.67			0.23			0.50			0.31
Less distributions:
Dividends from net investment income		(0.15	)		(0.31	)		(0.32	)		(0.45	)		(0.45	)		(0.42	)
Net asset value at end of period	$	9.84		$	9.96		$	9.94		$	9.59		$	9.81		$	9.76
Total return		0.30	% (B)		3.36	%		7.13	%		2.36	%		5.19	%		3.23	%
Net assets at end of period (000's)	$	41,983		$	43,411		$	43,749		$	46,989		$	59,192		$	76,090
Ratio of net expenses to average net assets		0.74	% (C)		0.74	%		0.74	%		0.74	%		0.74	%		0.72	%
Ratio of gross expenses to average net assets		0.77	% (C)		1.04	%		0.96	%		0.94	%		0.82	%		0.74	%
Ratio of net investment income to average net assets		2.23	% (C)		2.94	%		3.24	%		4.60	%		4.62	%		3.97	%
Portfolio turnover rate		21	% (B)		45	%		79	%		25	%		21	%		10	%

^(A)  Represents the period from commencement of operations (May 4, 2009) through September 30, 2009.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

61

Financial Highlights (Continued)

Touchstone Small Cap Core Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.62		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		0.02
Net realized and unrealized gains on investments		2.32			1.60
Total from investment operations		2.31			1.62
Less distributions:
Dividends from net investment income		(0.01	)		—
Distributions from net realized gains		(0.00	) (B)		—
Total distributions		(0.01	)		—
Net asset value at end of period	$	13.92		$	11.62
Total return (C)		19.87	% (D)		16.20	%
Net assets at end of period (000s)	$	82,133		$	50,110
Ratio of net expenses to average net assets		1.34	% (E)		1.34	%
Ratio of gross expenses to average net assets		1.64	% (E)		1.55	%
Ratio of net investment income (loss) to average net assets		(0.07	%) (E)		0.32	%
Portfolio turnover rate		6	% (D)		29	%

Touchstone Small Cap Core Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.55		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.02	)		(0.02	)
Net realized and unrealized gains on investments		2.26			1.57
Total from investment operations		2.24			1.55
Less distributions:
Dividends from net investment income		—			—
Distributions from net realized gains		(0.00	) (B)		—
Total distributions		(0.00	)		—
Net asset value at end of period	$	13.79		$	11.55
Total return (C)		19.40	% (D)		15.50	%
Net assets at end of period (000s)	$	12,748		$	5,245
Ratio of net expenses to average net assets		2.09	% (E)		2.09	%
Ratio of gross expenses to average net assets		2.26	% (E)		2.57	%
Ratio of net investment loss to average net assets		(0.79	%) (E)		(0.43	%)
Portfolio turnover rate		6	% (D)		29	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Amount rounds to less than $0.005 per share.

^(C)  Total returns shown exclude the effect of applicable sales loads.

^(D)  Not annualized.

^(E)  Annualized.

See accompanying notes to financial statements.

62

Financial Highlights (Continued)

Touchstone Small Cap Core Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.67		$	10.00
Income (loss) from investment operations:
Net investment income		0.01			0.03
Net realized and unrealized gains on investments		2.32			1.64
Total from investment operations		2.33			1.67
Less distributions:
Dividends from net investment income		(0.03	)		—
Distributions from net realized gains		(0.00	) (B)		—
Total distributions		(0.03	)		—
Net asset value at end of period	$	13.97		$	11.67
Total return		19.97	% (C)		16.70	%
Net assets at end of period (000s)	$	55,202		$	33,536
Ratio of net expenses to average net assets		1.09	% (D)		1.09	%
Ratio of gross expenses to average net assets		1.18	% (D)		1.31	%
Ratio of net investment income to average net assets		0.20	% (D)		0.61	%
Portfolio turnover rate		6	% (C)		29	%

Touchstone Small Cap Core Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Six Months Ended March 31, 2011 (Unaudited)			Year Ended Sept. 30, 2010 (A)
Net asset value at beginning of period	$	11.65		$	10.00
Income (loss) from investment operations:
Net investment income		0.01			0.06
Net realized and unrealized gains on investments		2.32			1.61
Total from investment operations		2.33			1.67
Less distributions:
Dividends from net investment income		(0.04	)		(0.02	)
Distributions from net realized gains		(0.00	) (B)		—
Total distributions		(0.04	)		(0.02	)
Net asset value at end of period	$	13.94		$	11.65
Total return		20.03	% (C)		16.74	%
Net assets at end of period (000s)	$	35,358		$	10,386
Ratio of net expenses to average net assets		0.94	% (D)		0.94	%
Ratio of gross expenses to average net assets		1.19	% (D)		1.32	%
Ratio of net investment income to average net assets		0.37	% (D)		0.66	%
Portfolio turnover rate		6	% (C)		29	%

^(A)  The Fund commenced operations on October 1, 2009.

^(B)  Amount rounds to less than $0.005 per share.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

63

Financial Highlights (Continued)

Touchstone Small Cap Value Fund — Class A

Per Share Data for a Share Outstanding Throughout the Period

	Period Ended March 31, 2011 (A) (Unaudited)
Net asset value at beginning of period	$	17.36
Income from investment operations:
Net investment income		0.04
Net realized and unrealized gains on investments		0.49
Total from investment operations		0.53
Less distributions:
Dividends from net investment income		(0.12	)
Distributions from net realized gains		—
Total distributions		(0.12	)
Net asset value at end of period	$	17.77
Total return (B)		3.04	% (C)
Net assets at end of period (000s)	$	3
Ratio of net expenses to average net assets		1.41	% (D)
Ratio of gross expenses to average net assets		1.41	% (D)
Ratio of net investment income to average net assets		2.72	% (D)
Portfolio turnover rate		143	% (C)

Touchstone Small Cap Value Fund — Class C

Per Share Data for a Share Outstanding Throughout the Period

	Period Ended March 31, 2011 (A) (Unaudited)
Net asset value at beginning of period	$	17.36
Income from investment operations:
Net investment income		0.03
Net realized and unrealized gains on investments		0.48
Total from investment operations		0.51
Less distributions:
Dividends from net investment income		(0.11	)
Distributions from net realized gains		—
Total distributions		(0.11	)
Net asset value at end of period	$	17.76
Total return (B)		2.94	% (C)
Net assets at end of period (000s)	$	3
Ratio of net expenses to average net assets		2.18	% (D)
Ratio of gross expenses to average net assets		2.29	% (D)
Ratio of net investment income to average net assets		1.93	% (D)
Portfolio turnover rate		143	% (C)

^(A)  Represents the period from commencement of operations (March 1, 2011) through March 31, 2011.

^(B)  Total returns shown exclude the effect of applicable sales loads.

^(C)  Not annualized.

^(D)  Annualized.

See accompanying notes to financial statements.

64

Financial Highlights (Continued)

Touchstone Small Cap Value Fund — Class Y

Per Share Data for a Share Outstanding Throughout the Period

	Period Ended March 31, 2011 (A) (Unaudited)
Net asset value at beginning of period	$	17.36
Income from investment operations:
Net investment income		0.04
Net realized and unrealized gains on investments		0.49
Total from investment operations		0.53
Less distributions:
Dividends from net investment income		(0.12	)
Distributions from net realized gains		—
Total distributions		(0.12	)
Net asset value at end of period	$	17.77
Total return		3.06	% (B)
Net assets at end of period (000s)	$	3
Ratio of net expenses to average net assets		1.18	% (C)
Ratio of gross expenses to average net assets		1.31	% (C)
Ratio of net investment income to average net assets		2.93	% (C)
Portfolio turnover rate		143	% (B)

Touchstone Small Cap Value Fund — Institutional Class

Per Share Data for a Share Outstanding Throughout the Period

	Period Ended March 31, 2011 (A) (Unaudited)
Net asset value at beginning of period	$	17.36
Income from investment operations:
Net investment income		0.04
Net realized and unrealized gains on investments		0.49
Total from investment operations		0.53
Less distributions:
Dividends from net investment income		(0.12	)
Distributions from net realized gains		—
Total distributions		(0.12	)
Net asset value at end of period	$	17.77
Total return		3.07	% (B)
Net assets at end of period (000s)	$	3
Ratio of net expenses to average net assets		1.03	% (C)
Ratio of gross expenses to average net assets		1.31	% (C)
Ratio of net investment income to average net assets		3.08	% (C)
Portfolio turnover rate		143	% (B)

^(A)  Represents the period from commencement of operations (March 1, 2011) through March 31, 2011.

^(B)  Not annualized.

^(C)  Annualized.

See accompanying notes to financial statements.

65

Financial Highlights (Continued)

Touchstone Small Cap Value Fund — Class Z

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	14.90		$	13.26		$	15.45		$	20.48		$	18.94		$	18.35
Income (loss) from investment operations:
Net investment income (loss)		0.12			0.00	(A)		0.02			(0.00	) (A)		(0.02	)		(0.08	)
Net realized and unrealized gains (losses) on investments		2.91			1.64			(2.17	)		(3.22	)		2.05			0.96
Total from investment operations		3.03			1.64			(2.15	)		(3.22	)		2.03			0.88
Less distributions:
Dividends from net investment income		(0.16	)		—			(0.02	)		(0.02	)		—			(0.02	)
Distributions from net realized gains		—			—			(0.02	)		(1.79	)		(0.49	)		(0.27	)
Total distributions		(0.16	)		—			(0.04	)		(1.81	)		(0.49	)		(0.29	)
Net asset value at end of period	$	17.77		$	14.90		$	13.26		$	15.45		$	20.48		$	18.94
Total return		20.37	% (B)		12.37	%		(13.90	%)		(16.81	%)		10.77	%		4.84	%
Net assets at end of period (000s)	$	61,592		$	64,553		$	84,046		$	132,113		$	204,027		$	249,431
Ratio of net expenses to average net assets		1.50	% (C)		1.50	%		1.50	%		1.50	%		1.58	%		1.63	% (D)
Ratio of gross expenses to average net assets		1.57	% (C)		1.73	%		1.72	%		1.74	%		1.71	%		1.65	%
Ratio of net investment income (loss) to average net assets		1.35	% (C)		0.00	% (A)		0.20	%		(0.03	%)		(0.01	%)		(0.43	%)
Portfolio turnover rate		143	% (B)		158	%		215	%		222	%		127	%		99	%

^(A)  Amount rounds to less than $.0.005 per share or 0.005%.

^(B)  Not annualized.

^(C)  Annualized.

^(D)  The ratio of net expenses to average net assets excludes the effect of fees paid indirectly. If these expense offsets were included, the ratio would have been 1.62%.

See accompanying notes to financial statements.

66

Financial Highlights (Continued)

Touchstone Ultra Short Duration Fixed Income Fund — Class Z

Per Share Data for a Share Outstanding Throughout Each Period

	Six Months Ended March 31, 2011			For the Year Ended September 30,
	(Unaudited)			2010			2009			2008			2007			2006
Net asset value at beginning of period	$	9.68		$	9.66		$	9.74		$	10.08		$	10.06		$	10.08
Income (loss) from investment operations:
Net investment income		0.07			0.18			0.32			0.47			0.53			0.44
Net realized and unrealized gains (losses) on investments		(0.03	)		0.06			(0.07	)		(0.34	)		0.01			(0.02	)
Total from investment operations		0.04			0.24			0.25			0.13			0.54			0.42
Less distributions from net investment income		(0.11	)		(0.22	)		(0.33	)		(0.47	)		(0.52	)		(0.44	)
Net asset value at end of period	$	9.61		$	9.68		$	9.66		$	9.74		$	10.08		$	10.06
Total return		0.44	% (A)		2.49	%		2.60	%		1.26	%		5.48	%		4.28	%
Net assets at end of period (000's)	$	264,776		$	236,650		$	108,552		$	143,837		$	146,045		$	173,716
Ratio of net expenses to average net assets		0.64	% (B)		0.69	%		0.69	%		0.69	%		0.69	%		0.69	%
Ratio of gross expenses to average net assets		0.64	% (B)		0.81	%		0.85	%		0.82	%		0.75	%		0.69	%
Ratio of net investment income to average net assets		2.19	% (B)		1.69	%		3.41	%		4.72	%		5.25	%		4.30	%
Portfolio turnover rate		76	% (A)		119	%		15	%		56	%		26	%		38	%

^(A)  Not annualized.

^(B)  Annualized.

See accompanying notes to financial statements.

67

Notes to Financial Statements

March 31, 2011 (Unaudited)

1. Organization

The Touchstone Funds Group Trust (the Trust), is registered under the Investment Company Act of 1940, as amended, (the Act), as an open-end management investment company. The Trust was established as a Delaware statutory trust under a Declaration of Trust dated October 25, 1993. The Trust consists of the following nineteen mutual funds, individually, a Fund, and collectively, the Funds:

Touchstone Capital Appreciation Fund ("Capital Appreciation Fund")
Touchstone Core Plus Fixed Income Fund ("Core Plus Fixed Income Fund")
Touchstone Emerging Markets Equity Fund ("Emerging Markets Equity Fund")
Touchstone Focused Equity Fund ("Focused Equity Fund")
Touchstone Global Equity Fund ("Global Equity Fund")
Touchstone Global Real Estate Fund ("Global Real Estate Fund")
Touchstone Healthcare and Biotechnology Fund ("Healthcare and Biotechnology Fund")
Touchstone Intermediate Fixed Income Fund ("Intermediate Fixed Income Fund")
Touchstone International Fixed Income Fund ("International Fixed Income Fund")
Touchstone Large Cap Relative Value Fund ("Large Cap Relative Value Fund")
Touchstone Market Neutral Equity Fund ("Market Neutral Equity Fund")
Touchstone Mid Cap Fund ("Mid Cap Fund")
Touchstone Mid Cap Value Fund ("Mid Cap Value Fund")
Touchstone Premium Yield Equity Fund ("Premium Yield Equity Fund")
Touchstone Sands Capital Select Growth Fund ("Sands Capital Select Growth Fund")
Touchstone Short Duration Fixed Income Fund ("Short Duration Fixed Income Fund")
Touchstone Small Cap Core Fund ("Small Cap Core Fund")
Touchstone Small Cap Value Fund ("Small Cap Value Fund")
Touchstone Ultra Short Duration Fixed Income Fund ("Ultra Short Duration Fixed Income Fund")

Each Fund is registered as a diversified portfolio of the Trust with the exception of the Focused Equity Fund, Global Real Estate Fund, Healthcare and Biotechnology Fund, International Fixed Income Fund, Sands Capital Select Growth Fund and Small Cap Core Fund, each of which is non-diversified.

The Funds are registered to offer different classes of shares: Class A shares, Class C shares, Class Y shares, Class Z shares, and Institutional Class shares. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectuses provide a description of each Fund's investment objectives, policies, and strategies along with information on the classes of shares currently being offered.

Effective December 6, 2010, the Touchstone Small Cap Value Opportunities Fund changed its name to the Touchstone Small Cap Value Fund.

2. Significant Accounting Policies

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

Security valuation — The Funds' portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (currently 4:00 p.m., Eastern time). Portfolio securities traded on stock exchanges are valued at the last sale price and portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (NOCP). Securities not traded on a particular day, or for which the last sale price is not readily available, are valued at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service. Debt securities for which market quotations are readily available are valued at their most recent bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service. Money market instruments

68

Notes to Financial Statements (Continued)

and other debt securities with a remaining maturity of less than 60 days are valued at amortized cost, which approximates market value. Securities for which market quotations or the NOCP are not readily available are valued based on fair value as determined by or under the direction of the Board of Trustees. Shares of open end mutual funds in which the Funds invest are valued at their respective net asset values as reported by the underlying funds. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.

For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security's last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates its net asset value if an event that could materially affect the value of those securities (a "Significant Event") has occurred between the time of the security's last close and the time that the Fund calculates its net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the Advisor or Sub-Advisor of a Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Fair Value Committee Meeting be called. In addition, the Funds' Administrator or Sub-Administrator monitors price movements among certain selected indices, securities and/or baskets of securities that may be an indicator that the closing prices received earlier from foreign exchanges or markets may not reflect market value at the time the Fund calculates its net asset value. If price movements in a monitored index or security exceed levels established by the Advisor, the Sub-Administrator notifies the Advisor or Sub-Advisor for any Fund holding the relevant securities that such limits have been exceeded. In such event, the Advisor makes the determination whether a Fair Value Committee meeting should be called based on the information provided.

The Funds have adopted Financial Accounting Standards Board ("FASB") ASC 820 "Fair Value Measurements". This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. Fair Value Measurements applies to fair value measurements already required or permitted by existing standards. The changes to current generally accepted accounting principles (GAAP) from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements.

Various inputs are used in determining the value of the Funds investments. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market instruments are valued using amortized cost, in accordance with rules under the Investment Company Act of 1940. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The aggregate value by input level, as of March 31, 2011, 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

69

Notes to Financial Statements (Continued)

included in each Fund's Portfolio of Investments, which also includes a breakdown of the Fund's investments by geographic/industry concentration. The Funds did not hold any Level 3 categorized securities during the six months ended or as of March 31, 2011.

During the six months ended March 31, 2011, there were no significant transfers between Levels 1 and 2.

Securities sold short — The Funds periodically engage in selling securities short, which obligates a Fund to replace a security borrowed by purchasing the same security at the current market value. A 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. A Fund would realize a gain if the price of the security declines between those dates.

Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:

(1) market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and

(2) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.

Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing the Fund's total return, and the potential for losses in excess of the 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 March 31, 2011, the Funds used forward foreign currency contracts to enhance potential gains, hedge against anticipated currency exchange rates, maintain diversity and liquidity of the portfolio and adjust exposure to foreign currencies.

Derivative instruments and hedging activities — The following table sets forth the fair value of the Funds' derivative financial instruments by primary risk exposure as of March 31, 2011:

Fair Value of Derivative Investments As of March 31, 2011
		Asset Derivatives		Liability Derivatives
Fund	Derivatives not accounted for as hedging instruments under ASC 815	Unrealized Appreciation*		Unrealized Depreciation**
Core Plus Fixed Income Fund	Forward foreign currency exchange contracts	$	5,974	$	6,959
International Fixed Income Fund	Forward foreign currency exchange contracts	$	95,879	$	98,513

*  Statements of Assets and Liabilities Location:  Unrealized appreciation on forward foreign currency contracts

**  Statements of Assets and Liabilities Location:  Unrealized depreciation on forward foreign currency contracts

70

Notes to Financial Statements (Continued)

For the six months ended March 31, 2011, the average quarterly balance of outstanding derivative financial instruments was as follows:

	Core Plus Fixed Income Fund		Global Real Estate Fund		International Fixed Income Fund
Forward foreign currency exchange contracts:
Average number of contracts		10		7		26
Average U.S. dollar amount purchased	$	1,495,524	$	95,836	$	11,789,383
Average U.S. dollar amount sold	$	1,499,717	$	95,832	$	11,796,517

The Effect of Derivative Investments on the Statement of Operations for the Six Months Ended March 31, 2011
Fund	Derivatives not accounted for as hedging instruments under ASC 815	Realized Gain or (Loss) on Derivatives*			Change in Unrealized Appreciation (Depreciation) on Derivatives**
Core Plus Fixed Income Fund	Forward foreign currency exchange contracts	$	(77,781	)	$	36,235
Emerging Markets Equity Fund	Forward foreign currency exchange contracts	$	(89,276	)	$	(10,274	)
Global Equity Fund	Forward foreign currency exchange contracts	$	1,307		$	0
Global Real Estate Fund	Forward foreign currency exchange contracts	$	1,421		$	172
International Fixed Income Fund	Forward foreign currency exchange contracts	$	(7,750	)	$	(22,948	)

*  Statements of Operations Location:  Net realized gains (losses) from foreign currency transactions

**  Statements of Operations Location:  Net change in unrealized appreciation/depreciation on foreign currency transactions

Portfolio securities loaned — Each Fund may lend its portfolio securities. Lending portfolio securities exposes a Fund to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Fund may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds' custodian in an amount at least equal to the market value of the loaned securities. The cash collateral is reinvested by the Funds' custodian into an approved investment vehicle. As of March 31, 2011, the following Funds loaned securities and received collateral as follows:

Fund	Fair Value of Securities Loaned		Value of Collateral Received
Core Plus Fixed Income Fund	$	121,650	$	126,108
Emerging Markets Equity Fund	$	8,530,432	$	8,740,784
Focused Equity Fund	$	5,904,730	$	6,119,266
Global Real Estate Fund	$	62,907	$	63,525
Healthcare and Biotechnology Fund	$	1,382,777	$	1,421,000
Mid Cap Fund	$	11,632,189	$	11,840,331
Mid Cap Value Fund	$	3,748,790	$	3,846,998
Sands Capital Select Growth Fund	$	84,005,123	$	85,925,026
Small Cap Core Fund	$	11,368,663	$	11,615,827
Small Cap Value Fund	$	3,378,189	$	3,470,034

All collateral received as cash is received, held and administered by the Funds' custodian for the benefit of the Funds in the applicable custody account or other account established for the purpose of holding collateral.

71

Notes to Financial Statements (Continued)

Funds participating in securities lending receive compensation in the form of fees, or retain a portion of interest or dividends on the investment of any cash received as collateral. The Funds also continue to receive interest or dividends on the securities loaned. The loaned securities are secured by collateral valued at least equal, at all times, to the fair value of the securities loaned plus accrued interest. Unrealized gain or loss on the fair value of the securities loaned that may occur during the term of the loan is recognized by the Funds. The Funds have the right under the lending agreement to recover the securities from the borrower on demand.

Delayed delivery transactions — Each Fund may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will set aside liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining net asset value. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When the Fund has sold a security on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.

Repurchase agreements — Repurchase agreements, which are collateralized by U.S. Government obligations, are valued at cost, which together with accrued interest approximates market value. At the time each Fund enters into a repurchase agreement, the seller agrees that the value of the underlying collateral securities, including accrued interest, will at all times be equal to or exceed the face amount of the repurchase agreement.

Share valuation — The net asset value per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund's assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.

The maximum offering price per share of Class A shares of the Funds (except Core Plus Fixed Income Fund and International Fixed Income Fund) is equal to the net asset value per share plus a sales load equal to 6.10% of the net asset value (or 5.75% of the offering price). The maximum offering price per share of Class A shares of the Core Plus Fixed Income Fund and International Fixed Income Fund is equal to the net asset value per share plus a sales load equal to 4.99% of the net asset value (or 4.75% of the offering price). The maximum offering price per share of Class C, Class Y, Class Z, and Institutional Class shares of the Funds is equal to the net asset value per share.

The redemption price per share of each class of shares of the Funds is equal to the net asset value per share. However, Class C shares of the Funds are subject to a contingent deferred sales load of 1.00% of the original purchase price if redeemed within a one-year period from the date of purchase.

Investment income — Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issue 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.

72

Notes to Financial Statements (Continued)

Distributions to shareholders — The Capital Appreciation Fund, Emerging Markets Equity Fund, Focused Equity Fund, Global Equity Fund, Healthcare and Biotechnology Fund, Market Neutral Equity Fund, Mid Cap Fund, and Small Cap Core Fund declare and distribute net investment income, if any, annually, as a dividend to shareholders. The Global Real Estate Fund, Large Cap Relative Value Fund, Mid Cap Value Fund, Sands Capital Select Growth Fund, and Small Cap Value Fund declare and distribute net investment income, if any, quarterly, as a dividend to shareholders. Prior to March 31, 2011, the Small Cap Value Fund declared and distributed net investment income annually. The Core Plus Fixed Income Fund, International Fixed Income Fund and Premium Yield Equity Fund declare and distribute net investment income, if any, monthly as a dividend to shareholders. The Intermediate Fixed Income Fund, Short Duration Fixed Income Fund, and Ultra Short Duration Fixed Income Fund declare net investment income daily and distribute it monthly, as a dividend to shareholders. Any realized capital gains, net of applicable capital loss carryforwards, on sales of securities for all Funds are distributed to shareholders at least annually. Income distributions and capital gain distributions are determined in accordance with income tax regulations.

Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the Funds are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.

Security transactions — Security transactions are reflected for financial reporting purposes as of the trade date, which may cause the NAV as stated in the accompanying financial statements to be different than the NAV applied to Fund share transactions. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.

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

3. Investment Transactions

Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended March 31, 2011:

	Capital Appreciation Fund		Core Plus Fixed Income Fund		Emerging Markets Equity Fund		Focused Equity Fund
Purchases of investment securities	$	1,901,710	$	9,934,451	$	203,656,258	$	102,142,335
Proceeds from sales and maturities	$	907,898	$	5,988,467	$	28,439,940	$	10,420,488
	Global Equity Fund		Global Real Estate Fund		Healthcare and Biotechnology Fund		Intermediate Fixed Income Fund
Purchases of investment securities	$	1,872,103	$	2,771,511	$	14,566,862	$	4,614,380
Proceeds from sales and maturities	$	3,036,957	$	3,106,403	$	20,886,999	$	16,722,228

73

Notes to Financial Statements (Continued)

	International Fixed Income Fund		Large Cap Relative Value Fund		Market Neutral Equity Fund		Mid Cap Fund
Purchases of investment securities	$	3,656,921	$	1,080,317	$	40,855,455	$	70,770,703
Proceeds from sales and maturities	$	3,140,159	$	43,432	$	38,473,725	$	105,734,291
	Mid Cap Value Fund		Premium Yield Equity Fund		Sands Capital Select Growth Fund		Short Duration Fixed Income Fund
Purchases of investment securities	$	19,873,582	$	15,351,229	$	378,061,125	$	8,896,417
Proceeds from sales and maturities	$	13,562,672	$	17,583,947	$	105,259,343	$	9,425,025

	Small Cap Core Fund		Small Cap Value Fund		Ultra Short Duration Fixed Income Fund
Purchases of investment securities	$	69,590,898	$	89,682,878	$	213,316,902
Proceeds from sales and maturities	$	8,209,863	$	109,589,974	$	171,107,024

4. Transactions with Affiliates and Other Related Parties

Certain officers of the Trust are also officers of the Advisor (Touchstone Advisors, Inc.), the Underwriter (Touchstone Securities, Inc.) and/or JPMorgan Chase Bank, N.A. ("JPMorgan") the Sub-Administrator and Transfer Agent to the Funds. The Advisor and Underwriter are each wholly owned, indirect subsidiaries of The Western and Southern Life Insurance Company ("Western-Southern").

As of March 31, 2011, the following Funds were owned by Western-Southern and subsidiaries:

Capital Appreciation Fund	45.2	%
Core Plus Fixed Income Fund	19.5	%
Global Equity Fund	79.8	%
Global Real Estate Fund	89.7	%
International Fixed Income Fund	83.0	%
Large Cap Relative Value Fund	68.0	%
Market Neutral Equity Fund	88.9	%
Mid Cap Value Fund	87.1	%
Premium Yield Equity Fund	46.7	%

MANAGEMENT & EXPENSE LIMITATIONS AGREEMENTS

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

Capital Appreciation Fund	0.75% on the first $25 million 0.70% on assets greater than $25 million to $250 million 0.65% of such assets in excess of $250 million
Core Plus Fixed Income Fund	0.45% on the first $100 million 0.425% on assets greater than $100 million to $250 million 0.40% of such assets in excess of $250 million
Emerging Markets Equity Fund	1.10% on the first $200 million 1.05% on assets greater than $200 million to $400 million 0.95% of such assets in excess of $400 million

74

Notes to Financial Statements (Continued)

Focused Equity Fund	0.70% on the first $100 million 0.65% on assets greater than $100 million to $500 million 0.60% of such assets in excess of $500 million
Global Equity Fund	0.85% on the first $50 million 0.80% on assets greater than $50 million to $500 million 0.75% of such assets in excess of $500 million
Global Real Estate Fund		0.80	%
Healthcare and Biotechnology Fund		1.00	%
Intermediate Fixed Income Fund		0.40	%
International Fixed Income Fund	0.55% on the first $100 million 0.50% on assets greater than $100 million to $250 million 0.45% of such assets in excess of $250 million
Large Cap Relative Value Fund	0.70% on the first $100 million 0.65% of such assets in excess of $100 million
Market Neutral Equity Fund		1.30	%
Mid Cap Fund		0.80	%
Mid Cap Value Fund	0.85% on the first $100 million 0.80% on assets greater than $100 million to $400 million 0.75% of such assets in excess of $400 million
Premium Yield Equity Fund	0.70% on the first $100 million 0.65% of such assets in excess of $100 million
Sands Capital Select Growth Fund*	0.85% on the first $1 billion 0.80% on assets greater than $1 billion to $1.5 billion 0.75% on assets greater than $1.5 billion to $2 billion 0.70% of such assets in excess of $2 billion
Short Duration Fixed Income Fund		0.25	%
Small Cap Core Fund		0.85	%
Small Cap Value Fund*	0.95% on the first $100 million 0.90% of such assets in excess of $100 million
Ultra Short Duration Fixed Income Fund		0.25	%

*  Prior to December 6, 2010, the fees for the Sands Capital Select Growth Fund and the Small Cap Value Fund were 0.85% and 0.95%, respectively.

In addition to the base advisory fee shown above for the Sands Capital Select Growth Fund, a performance fee adjustment will be added to or subtracted from the base advisory fee depending on the performance of the Fund in relation to the investment performance of the Fund's benchmark index, for the preceding twelve month period, as follows:

	Benchmark Index	Benchmark Threshold	Annual Adjustment Rate	Highest / Lowest Possible Advisory Fee
Sands Capital Select Growth Fund	Russell 1000 Growth Index	+/-2.50%	+/- 0.15%		1.00% / 0.55%

For the six months ended March 31, 2011, the Advisor's base fee was increased by $458,486 as a result of the performance fee adjustment.

75

Notes to Financial Statements (Continued)

The Advisor has entered into investment sub-advisory agreements with the following parties:

AGF Investments America, Inc.
Emerging Markets Equity Fund
Aronson + Johnson + Oritz
Market Neutral Equity Fund
Bedlam Asset Management PLC
Global Equity Fund
Bradford & Marzec LLC
Core Plus Fixed Income Fund
Cornerstone Real Estate Advisers LLC
Global Real Estate Fund
DePrince, Race & Zollo, Inc.
Small Cap Value Fund*
EARNEST Partners LLC
Large Cap Relative Value Fund
Farr, Miller & Washington LLC
Capital Appreciation Fund
Fort Washington Investment Advisors, Inc.**
Focused Equity Fund
Ultra Short Duration Fixed Income Fund GAM International Management Limited
International Fixed Income Fund
JKMilne Asset Management
Intermediate Fixed Income Fund
Lee Munder Capital Group LLC
Mid Cap Value Fund
The London Company
Small Cap Core Fund
Longfellow Investment Management Co.
Short Duration Fixed Income Fund
Miller/Howard Investments, Inc.
Premium Yield Equity Fund
Sands Capital Management, LLC
Sands Capital Select Growth Fund
Turner Investment Partners, Inc.
Healthcare and Biotechnology Fund
Mid Cap Fund

*  Prior to December 6, 2010, the Fund's sub-advisor was Turner Investment Partners, Inc.

**  Affiliate of the Advisor

The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.

The Advisor entered into an Expense Limitation Agreement to contractually limit operating expenses of the Funds. The maximum operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to waive advisory fees, administration fees and reimburse expenses in order to maintain expense limitations for the Funds as follows until at least January 27, 2012:

	Class A			Class C			Class Y			Class Z			Institutional Class
Capital Appreciation Fund		1.19	%		1.94	%		0.94	%		—			0.79	%
Core Plus Fixed Income Fund		0.95	%		1.70	%		0.70	%		—			0.50	%
Emerging Markets Equity Fund		1.74	%		2.49	%		1.49	%		—			1.34	%
Focused Equity Fund		1.20	%		1.95	%		0.95	%		—			0.80	%
Global Equity Fund		1.34	%		2.09	%		1.09	%		—			0.94	%
Global Real Estate Fund		1.39	%		2.14	%		1.14	%		—			0.99	%
Healthcare and Biotechnology Fund		1.55	%		2.30	%		—			—			—
Intermediate Fixed Income Fund		—			—			—			—			0.40	%
International Fixed Income Fund		1.09	%		1.84	%		0.84	%		—			0.69	%
Large Cap Relative Value Fund		1.19	%		1.94	%		0.94	%		—			0.79	%
Market Neutral Equity Fund		1.50	%		2.25	%		1.25	%		—			—
Mid Cap Fund		1.21	%		1.96	%		0.96	%		1.21	%		—
Mid Cap Value Fund		1.29	%		2.04	%		1.04	%		—			0.89	%
Premium Yield Equity Fund		1.20	%		1.95	%		0.95	%		—			—
Short Duration Fixed Income Fund		—			—			0.49	%		0.74	%		—
Small Cap Core Fund		1.34	%		2.09	%		1.09	%		—			0.94	%
Small Cap Value Fund		1.43	%		2.18	%		1.18	%		1.50	%		1.03	%
Ultra Short Duration Fixed Income Fund		—			—			—			0.69	%		—

76

Notes to Financial Statements (Continued)

The Advisor has agreed to limit certain Funds' other operating expenses ("Other Expenses") to the following levels. These expense limitations will remain in effect until at least January 27, 2012.

	Class A			Class C			Class Y			Class Z
Sands Capital Select Growth Fund		0.25	%		0.25	%		0.25	%		0.25	%

During the six months ended March 31, 2011, the Advisor waived investment advisory fees and administration fees and/or reimbursed expenses of the Funds as follows:

	Investment Advisory Fees Waived		Administration Fees Waived		Other Operating Expenses Reimbursed
Capital Appreciation Fund	$	24,366	$	7,118	$	6,451
Core Plus Fixed Income Fund	$	14,576	$	24,670	$	14,949
Emerging Markets Equity Fund	$	—	$	61,870	$	—
Focused Equity Fund	$	—	$	16,794	$	—
Global Equity Fund	$	20,386	$	4,797	$	15,880
Global Real Estate Fund	$	18,576	$	4,644	$	29,616
Healthcare and Biotechnology Fund	$	—	$	25,379	$	7,612
Intermediate Fixed Income Fund	$	38,283	$	104,492	$	—
International Fixed Income Fund	$	22,429	$	9,816	$	3,599
Large Cap Relative Value Fund	$	17,488	$	4,996	$	3,601
Market Neutral Equity Fund	$	45,511	$	34,252	$	1,782
Mid Cap Fund	$	—	$	69,639	$	—
Mid Cap Value Fund	$	12,120	$	46,875	$	2,199
Premium Yield Equity Fund	$	—	$	25,586	$	—
Sands Capital Select Growth Fund	$	—	$	138,086	$	—
Short Duration Fixed Income Fund	$	—	$	8,956	$	—
Small Cap Core Fund	$	—	$	129,853	$	11,881
Small Cap Value Fund	$	—	$	24,103	$	—

ADMINISTRATION AGREEMENT

The Advisor entered into an Administration and Accounting Services Agreement with the Trust, whereby the Advisor is responsible for supplying executive and regulatory compliance services, supervises the preparation of tax returns, and coordinates the preparation of reports to shareholders and reports to, and filings with, the Securities and Exchange Commission and state securities authorities, materials for meetings of the Board of Trustees, calculating the daily net asset value per share and maintaining the financial books and records of each Fund. For its services, the Advisor receives an annual fee of 0.20% of the aggregate average daily net assets of the Trust, Touchstone Investment Trust (excluding Institutional Money Market Fund), Touchstone Strategic Trust, and Touchstone Tax-Free Trust up to and including $6 billion; 0.16% of the next $4 billion of aggregate average daily net assets; and 0.12% of the aggregate average daily net assets of all such assets in excess of $10 billion. The fee is allocated among the Funds on the basis of relative daily net assets.

The Advisor has engaged JPMorgan as the Sub-Administrator to the Trust. JPMorgan 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 JPMorgan, JPMorgan maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes

77

Notes to Financial Statements (Continued)

purchases and redemptions of each Fund's shares, acts as dividend and distribution disbursing agent and performs other shareholder service functions. For these services, JPMorgan receives a monthly fee per shareholder account from each Fund. In addition, each Fund pays JPMorgan out-of-pocket expenses including, but not limited to, postage and supplies.

For the six months ended March 31, 2011, the following Funds reimbursed the Advisor for amounts paid to third parties that provide sub-transfer agency and other administrative services to the Funds. These amounts are included in transfer agent fees on the Statements of Operations:

	Amount
Capital Appreciation Fund	$	188
Core Plus Fixed Income Fund	$	575
Emerging Markets Equity Fund	$	3,409
Focused Equity Fund	$	241
Global Equity Fund	$	822
Global Real Estate Fund	$	10
Healthcare and Biotechnology Fund	$	8,253
Intermediate Fixed Income Fund	$	176
International Fixed Income Fund	$	313
Large Cap Relative Value Fund	$	74
Market Neutral Equity Fund	$	541
Mid Cap Fund	$	936
Mid Cap Value Fund	$	64
Premium Yield Equity Fund	$	2,261
Sands Capital Select Growth Fund	$	163,569
Short Duration Fixed Income Fund	$	8,220
Small Cap Core Fund	$	5,796
Small Cap Value Fund	$	10,147
Ultra Short Duration Fixed Income Fund	$	26,471

PLANS OF DISTRIBUTION

The Trust has adopted a Distribution and Shareholder Services Plan for Class A shares of the Capital Appreciation Fund, Core Plus Fixed Income Fund, Emerging Markets Equity Fund, Focused Equity Fund, Global Equity Fund, Global Real Estate Fund, Healthcare and Biotechnology Fund, International Fixed Income Fund, Large Cap Relative Value Fund, Market Neutral Equity Fund, Mid Cap Fund, Mid Cap Value Fund, Premium Yield Equity Fund, Sands Capital Select Growth Fund, Small Cap Core Fund and Small Cap Value Fund (Class A Plan) under which each Fund may directly or indirectly bear expenses relating to the distribution of Class A shares of the Trust and for shareholder services provided to Class A shares. The Fund will incur and/or reimburse expenses for distribution and shareholder services of Class A shares at an annual rate not to exceed 0.25% of the average daily net assets of Class A shares.

The Trust has adopted a Distribution and Shareholder Services Plan for Class C shares of the Capital Appreciation Fund, Core Plus Fixed Income Fund, Emerging Markets Equity Fund, Focused Equity Fund, Global Equity Fund, Global Real Estate Fund, Healthcare and Biotechnology Fund, International Fixed Income Fund, Large Cap Relative Value Fund, Market Neutral Equity Fund, Mid Cap Fund, Mid Cap Value Fund, Premium Yield Equity Fund, Sands Capital Select Growth Fund, Small Cap Core Fund and Small Cap Value Fund (Class C Plan) under which each Fund may directly or indirectly bear expenses relating to the distribution of Class C shares of the Trust and for shareholder services provided to Class C shares. The Fund will incur and/or reimburse expenses for distribution and shareholder services of Class C shares at an annual

78

Notes to Financial Statements (Continued)

rate not to exceed 0.75% and 0.25%, respectively, of the average daily net assets of Class C shares. The combination of these fees is not to exceed 1.00% of the average daily net assets of Class C shares.

The Trust has adopted a Shareholder Services Plan for Class Z shares of the Mid Cap Fund, Sands Capital Select Growth Fund, Short Duration Fixed Income Fund, Small Cap Value Fund, and Ultra Short Duration Fixed Income Fund (Class Z Plan) under which each Fund may directly or indirectly bear expenses for shareholder services provided. The Fund will incur and/or reimburse expense for shareholder services of Class Z shares at an annual rate not to exceed 0.25% of the average daily net assets of Class Z shares.

UNDERWRITING AGREEMENT

The Underwriter is the Funds' principal underwriter and, as such, acts as exclusive agent for distribution of the Funds' shares. Under the terms of the Underwriting Agreement between the Trust and Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of shares of the following Funds during the six months ended March 31, 2011:

	Amount
Capital Appreciation Fund	$	837
Core Plus Fixed Income Fund	$	352
Emerging Markets Equity Fund	$	38,115
Focused Equity Fund	$	3,873
Global Equity Fund	$	49
Global Real Estate Fund	$	169
Healthcare and Biotechnology Fund	$	211
International Fixed Income Fund	$	1,028
Large Cap Relative Value Fund	$	546
Market Neutral Equity Fund	$	80
Mid Cap Fund	$	214
Mid Cap Value Fund	$	414
Premium Yield Equity Fund	$	1,198
Sands Capital Select Growth Fund	$	10,783
Small Cap Core Fund	$	14,843

In addition, the Underwriter collected contingent deferred sales charges on the redemption of Class C shares of the following Funds during the six months ended March 31, 2011:

	Amount
Core Plus Fixed Income Fund	$	247
Emerging Markets Equity Fund	$	573
Healthcare and Biotechnology Fund	$	2
International Fixed Income Fund	$	1,012
Market Neutral Equity Fund	$	219
Mid Cap Fund	$	47
Premium Yield Equity Fund	$	259
Small Cap Core Fund	$	1,042

COMPLIANCE SERVICES AGREEMENT

Under the terms of the Compliance Services Agreement between the Trust and JPMorgan, JPMorgan provides certain compliance services to the Trust and provides administrative support services to the Funds' Compliance Program and Chief Compliance Officer. For these services, JPMorgan receives a quarterly fee from each Fund.

79

Notes to Financial Statements (Continued)

AFFILIATED INVESTMENTS

Each Fund may invest in the Touchstone Institutional Money Market Fund, subject to compliance with several conditions set forth in an order received by the Trust from the Securities and Exchange Commission. To the extent that the other Touchstone Funds are invested in the Touchstone Institutional Money Market Fund, the Advisor and Administrator will be paid additional fees from the Touchstone Institutional Money Market Fund that will not be waived or reimbursed.

A summary of each Fund's investment, as applicable, in the Touchstone Institutional Money Market Fund for the six months ended March 31, 2011, is as follows:

	Share Activity
	Balance 09/30/10		Purchases		Sales			Balance 03/31/11		Dividends		Value 03/31/11
Capital Appreciation Fund		351,779		1,949,124		(1,897,131	)		403,772	$	597	$	403,772
Core Plus Fixed Income Fund		1,567,366		10,914,171		(11,956,922	)		524,615	$	968	$	524,615
Emerging Markets Equity Fund		6,859,541		100,141,696		(99,386,986	)		7,614,251	$	15,790	$	7,614,251
Focused Equity Fund		36,740		68,267,948		(61,335,993	)		6,968,695	$	4,163	$	6,968,695
Global Equity Fund		90,045		1,531,915		(1,518,346	)		103,614	$	190	$	103,614
Global Real Estate Fund		128,215		1,139,036		(1,237,175	)		30,076	$	75	$	30,076
Healthcare and Biotechnology Fund		441,113		10,231,038		(10,192,625	)		479,526	$	545	$	479,526
Intermediate Fixed Income Fund		4,393,607		20,742,239		(23,178,968	)		1,956,878	$	5,782	$	1,956,878
International Fixed Income Fund		241,561		2,450,516		(2,428,767	)		263,310	$	354	$	263,310
Large Cap Relative Value Fund		117,676		1,293,755		(1,108,411	)		303,020	$	337	$	303,020
Market Neutral Equity Fund		988,692		8,414,318		(9,276,764	)		126,246	$	1,259	$	126,246
Mid Cap Fund		564,694		42,212,015		(42,255,921	)		520,788	$	1,603	$	520,788
Mid Cap Value Fund		554,647		7,707,875		(7,444,616	)		817,906	$	718	$	817,906
Premium Yield Equity Fund		1,162,613		14,207,798		(14,503,896	)		866,515	$	1,788	$	866,515
Sands Capital Select Growth Fund		30,084,351		155,685,287		(167,655,144	)		18,114,494	$	21,924	$	18,114,494
Short Duration Fixed Income Fund		633,713		9,464,727		(9,413,459	)		684,981	$	1,186	$	684,981
Small Cap Core Fund		1,696,266		54,257,577		(45,912,735	)		10,041,108	$	4,124	$	10,041,108
Small Cap Value Fund		877,327		21,758,744		(20,541,072	)		2,094,999	$	1,794	$	2,094,999
Ultra Short Duration Fixed Income Fund		34,353,028		141,849,916		(160,829,938	)		15,373,006	$	39,787	$	15,373,006

80

Notes to Financial Statements (Continued)

5. Capital Share Transactions

Proceeds and payments on capital shares as shown in the Statements of Changes in Net Assets are the result of the following capital share transactions for the periods shown:

	Capital Appreciation Fund						Core Plus Fixed Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		104,419			267,286			46,359			514,144
Shares reinvested		6,001			—			7,102			4,924
Shares redeemed		(12,140	)		(10,100	)		(246,426	)		(56,102	)
Change in shares outstanding		98,280			257,186			(192,965	)		462,966
Shares outstanding, beginning of period		257,186			—			462,966			—
Shares outstanding, end of period		355,466			257,186			270,001			462,966
Class C
Shares issued		6,568			37,123			61,848			187,138
Shares reinvested		1,104			—			4,485			2,540
Shares redeemed		(87	)		(3,690	)		(10,776	)		(10,089	)
Change in shares outstanding		7,585			33,433			55,557			179,589
Shares outstanding, beginning of period		33,433			—			179,589			—
Shares outstanding, end of period		41,018			33,433			235,146			179,589
Class Y
Shares issued		88			16,888			58,861			96,107
Shares reinvested		440			12			2,684			1,514
Shares redeemed		—			(4,490	)		(61,589	)		(19,217	)
Change in shares outstanding		528			12,410			(44	)		78,404
Shares outstanding, beginning of period		12,410			—			78,404			—
Shares outstanding, end of period		12,938			12,410			78,360			78,404
Institutional Class
Shares issued		—			270,250			575,684			1,563,997
Shares reinvested		9,972			708			54,072			28,843
Shares redeemed		—			(250	)		(55,805	)		(25,169	)
Change in shares outstanding		9,972			270,708			573,951			1,567,671
Shares outstanding, beginning of period		270,708			—			1,567,671			—
Shares outstanding, end of period		280,680			270,708			2,141,622			1,567,671

81

Notes to Financial Statements (Continued)

	Emerging Markets Equity Fund						Focused Equity Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Period Ended September 30, 2010 (A)
Class A
Shares issued		2,643,064			935,779			7,224,650			87,159
Shares reinvested		5,820			—			1,085			—
Shares redeemed		(743,707	)		(120,057	)		(181,382	)		(12,811	)
Change in shares outstanding		1,905,177			815,722			7,044,353			74,348
Shares outstanding, beginning of period		815,722			—			74,348			—
Shares outstanding, end of period		2,720,899			815,722			7,118,701			74,348
Class C
Shares issued		385,726			301,020			4,321			18,599
Shares reinvested		766			—			185			—
Shares redeemed		(115,203	)		(15,645	)		(14	)		(1,385	)
Change in shares outstanding		271,289			285,375			4,492			17,214
Shares outstanding, beginning of period		285,375			—			17,214			—
Shares outstanding, end of period		556,664			285,375			21,706			17,214
Class Y
Shares issued		6,637,808			1,141,030			1,061,741			18,300
Shares reinvested		14,126			—			125			—
Shares redeemed		(409,313	)		(71,873	)		(69,159	)		—
Change in shares outstanding		6,242,621			1,069,157			992,707			18,300
Shares outstanding, beginning of period		1,069,157			—			18,300			—
Shares outstanding, end of period		7,311,778			1,069,157			1,011,007			18,300
Institutional Class
Shares issued		5,431,640			10,327,778			—			166,432
Shares reinvested		51,241			—			3,084			—
Shares redeemed		(180,277	)		(481,205	)		—			(96,432	)
Change in shares outstanding		5,302,604			9,846,573			3,084			70,000
Shares outstanding, beginning of period		9,846,573			—			70,000			—
Shares outstanding, end of period		15,149,177			9,846,573			73,084			70,000

^(A)  Represents the period from commencement of operations (December 31, 2009) through September 30, 2010.

82

Notes to Financial Statements (Continued)

	Global Equity Fund						Global Real Estate Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		43,638			217,437			28,287			170,489
Shares reinvested		1,145			—			3,475			415
Shares redeemed		(158,348	)		(43,120	)		(61,549	)		(94,047	)
Change in shares outstanding		(113,565	)		174,317			(29,787	)		76,857
Shares outstanding, beginning of period		174,317			—			76,857			—
Shares outstanding, end of period		60,752			174,317			47,070			76,857
Class C
Shares issued		—			10,250			—			10,745
Shares reinvested		91			—			811			177
Shares redeemed		—			(250	)		—			(250	)
Change in shares outstanding		91			10,000			811			10,672
Shares outstanding, beginning of period		10,000			—			10,672			—
Shares outstanding, end of period		10,091			10,000			11,483			10,672
Class Y
Shares issued		2,592			13,548			—			11,172
Shares reinvested		230			—			904			231
Shares redeemed		(7	)		(250	)		—			(250	)
Change in shares outstanding		2,815			13,298			904			11,153
Shares outstanding, beginning of period		13,298			—			11,153			—
Shares outstanding, end of period		16,113			13,298			12,057			11,153
Institutional Class
Shares issued		1,469			288,959			—			272,604
Shares reinvested		5,286			64			22,647			6,130
Shares redeemed		—			(250	)		(722	)		(250	)
Change in shares outstanding		6,755			288,773			21,925			278,484
Shares outstanding, beginning of period		288,773			—			278,484			—
Shares outstanding, end of period		295,528			288,773			300,409			278,484

83

Notes to Financial Statements (Continued)

	Healthcare and Biotechnology Fund						Intermediate Fixed Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		43,541			251,091			—			—
Shares reinvested		2,905			—			—			—
Shares redeemed		(392,411	)		(1,164,642	)		—			—
Change in shares outstanding		(345,965	)		(913,551	)		—			—
Shares outstanding, beginning of period		1,762,070			2,675,621			—			—
Shares outstanding, end of period		1,416,105			1,762,070			—			—
Class C
Shares issued		2,637			5,448			—			—
Shares redeemed		(78,508	)		(97,007	)		—			—
Change in shares outstanding		(75,871	)		(91,559	)		—			—
Shares outstanding, beginning of period		188,792			280,351			—			—
Shares outstanding, end of period		112,921			188,792			—			—
Institutional Class
Shares issued		—			—			285,303			1,195,486
Shares reinvested		—			—			3,528			7,956
Shares redeemed		—			—			(967,590	)		(1,169,060	)
Change in shares outstanding		—			—			(678,759	)		34,382
Shares outstanding, beginning of period		—			—			11,914,619			11,880,237
Shares outstanding, end of period		—			—			11,235,860			11,914,619

84

Notes to Financial Statements (Continued)

	International Fixed Income Fund						Large Cap Relative Value Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		108,041			116,964			96,218			44,770
Shares reinvested		10,750			296			471			22
Shares redeemed		(136,155	)		(1,284	)		(4,150	)		(1,924	)
Change in shares outstanding		(17,364	)		115,976			92,539			42,868
Shares outstanding, beginning of period		115,976			—			42,868			—
Shares outstanding, end of period		98,612			115,976			135,407			42,868
Class C
Shares issued		12,219			41,491			6,783			21,740
Shares reinvested		3,178			70			48			—
Shares redeemed		(12,859	)		(5,756	)		—			(520	)
Change in shares outstanding		2,538			35,805			6,831			21,220
Shares outstanding, beginning of period		35,805			—			21,220			—
Shares outstanding, end of period		38,343			35,805			28,051			21,220
Class Y
Shares issued		80,132			23,352			—			10,267
Shares reinvested		3,878			134			114			17
Shares redeemed		(47,718	)		(6,475	)		—			(250	)
Change in shares outstanding		36,292			17,011			114			10,034
Shares outstanding, beginning of period		17,011			—			10,034			—
Shares outstanding, end of period		53,303			17,011			10,148			10,034
Institutional Class
Shares issued		634			672,244			—			270,789
Shares reinvested		65,410			9,128			3,472			568
Shares redeemed		—			(251	)		—			(250	)
Change in shares outstanding		66,044			681,121			3,472			271,107
Shares outstanding, beginning of period		681,121			—			271,107			—
Shares outstanding, end of period		747,165			681,121			274,579			271,107

85

Notes to Financial Statements (Continued)

	Market Neutral Equity Fund						Mid Cap Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		12,134			138,722			6,225			25,374
Shares reinvested		—			—			—			168
Shares redeemed		(11,096	)		(76,024	)		(7,946	)		(11,881	)
Change in shares outstanding		1,038			62,698			(1,721	)		13,661
Shares outstanding, beginning of period		62,698			—			54,044			40,383
Shares outstanding, end of period		63,736			62,698			52,323			54,044
Class C
Shares issued		4,889			18,133			12,173			6,152
Shares redeemed		(2,311	)		(770	)		(2,527	)		(1,501	)
Change in shares outstanding		2,578			17,363			9,646			4,651
Shares outstanding, beginning of period		17,363			—			19,770			15,119
Shares outstanding, end of period		19,941			17,363			29,416			19,770
Class Y
Shares issued		208,735			3,325,020			892,278			404,386
Shares reinvested		—			—			711			5,228
Shares redeemed		(28,190	)		(2,801	)		(3,305,496	)		(5,629,235	)
Change in shares outstanding		180,545			3,322,219			(2,412,507	)		(5,219,621	)
Shares outstanding, beginning of period		3,322,219			—			9,741,651			14,961,272
Shares outstanding, end of period		3,502,764			3,322,219			7,329,144			9,741,651
Class Z
Shares issued		—			—			70,229			106,514
Shares reinvested		—			—			—			814
Shares redeemed		—			—			(20,905	)		(217,842	)
Change in shares outstanding		—			—			49,324			(110,514	)
Shares outstanding, beginning of period		—			—			51,805			162,319
Shares outstanding, end of period		—			—			101,129			51,805

86

Notes to Financial Statements (Continued)

	Mid Cap Value Fund						Premium Yield Equity Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		209,787			46,216			380,053			471,835
Shares reinvested		1,567			155			61,981			95,669
Shares redeemed		(3,193	)		(17,067	)		(97,838	)		(458,430	)
Change in shares outstanding		208,161			29,304			344,196			109,074
Shares outstanding, beginning of period		29,304			—			3,461,054			3,351,980
Shares outstanding, end of period		237,465			29,304			3,805,250			3,461,054
Class C
Shares issued		1,582			11,460			198,743			578,905
Shares reinvested		168			41			12,202			12,488
Shares redeemed		—			(250	)		(150,221	)		(91,688	)
Change in shares outstanding		1,750			11,251			60,724			499,705
Shares outstanding, beginning of period		11,251			—			1,059,315			559,610
Shares outstanding, end of period		13,001			11,251			1,120,039			1,059,315
Class Y
Shares issued		108,593			50,041			1,011,785			1,890,153
Shares reinvested		1,491			173			36,873			27,395
Shares redeemed		(981	)		(251	)		(1,684,036	)		(227,888	)
Change in shares outstanding		109,103			49,963			(635,378	)		1,689,660
Shares outstanding, beginning of period		49,963			—			1,782,756			93,096
Shares outstanding, end of period		159,066			49,963			1,147,378			1,782,756
Institutional Class
Shares issued		127,059			3,338,313			—			—
Shares reinvested		70,071			2,777			—			—
Shares redeemed		(136	)		(250	)		—			—
Change in shares outstanding		196,994			3,340,840			—			—
Shares outstanding, beginning of period		3,340,840			—			—			—
Shares outstanding, end of period		3,537,834			3,340,840			—			—

87

Notes to Financial Statements (Continued)

	Sands Capital Select Growth Fund						Short Duration Fixed Income Fund
	Six Months Ended March 31, 2011 (A) (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		700,556			—			—			—
Shares redeemed		(3,379	)		—			—			—
Change in shares outstanding		697,177			—			—			—
Shares outstanding, beginning of period		—			—			—			—
Shares outstanding, end of period		697,177			—			—			—
Class C
Shares issued		312,064			—			—			—
Shares redeemed		(1,301	)		—			—			—
Change in shares outstanding		310,763			—			—			—
Shares outstanding, beginning of period		—			—			—			—
Shares outstanding, end of period		310,763			—			—			—
Class Y
Shares issued		9,396,956			5,629,008			64,168			92,642
Shares reinvested		—			—			34			1,055
Shares redeemed		(1,943,885	)		(3,303,760	)		(40,674	)		(76,251	)
Change in shares outstanding		7,453,071			2,325,248			23,528			17,446
Shares outstanding, beginning of period		13,625,415			11,300,167			76,949			59,503
Shares outstanding, end of period		21,078,486			13,625,415			100,477			76,949
Class Z
Shares issued		28,820,982			32,185,209			462,408			754,949
Shares reinvested		—			—			65,284			115,755
Shares redeemed		(10,054,015	)		(16,070,720	)		(616,271	)		(914,126	)
Change in shares outstanding		18,766,967			16,114,489			(88,579	)		(43,422	)
Shares outstanding, beginning of period		62,110,554			45,996,065			4,357,109			4,400,531
Shares outstanding, end of period		80,877,521			62,110,554			4,268,530			4,357,109

^(A)  Class A and Class C represent the period from commencement of operations (November 15, 2010) through March 31, 2011.

88

Notes to Financial Statements (Continued)

	Small Cap Core Fund						Small Cap Value Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010			Six Months Ended March 31, 2011 (A) (Unaudited)			Year Ended September 30, 2010
Class A
Shares issued		2,238,130			5,137,874			144			—
Shares reinvested		3,004			—			1			—
Shares redeemed		(651,232	)		(825,614	)		—			—
Change in shares outstanding		1,589,902			4,312,260			145			—
Shares outstanding, beginning of period		4,312,260			—			—			—
Shares outstanding, end of period		5,902,162			4,312,260			145			—
Class C
Shares issued		519,624			475,489			144			—
Shares reinvested		12			—			1			—
Shares redeemed		(49,208	)		(21,338	)		—			—
Change in shares outstanding		470,428			454,151			145			—
Shares outstanding, beginning of period		454,151			—			—			—
Shares outstanding, end of period		924,579			454,151			145			—
Class Y
Shares issued		1,385,574			3,255,338			144			—
Shares reinvested		6,140			—			1			—
Shares redeemed		(313,930	)		(380,556	)		—			—
Change in shares outstanding		1,077,784			2,874,782			145			—
Shares outstanding, beginning of period		2,874,782			—			—			—
Shares outstanding, end of period		3,952,566			2,874,782			145			—
Class Z
Shares issued		—			—			401,232			763,694
Shares reinvested		—			—			32,993			—
Shares redeemed		—			—			(1,301,288	)		(2,768,817	)
Change in shares outstanding		—			—			(867,063	)		(2,005,123	)
Shares outstanding, beginning of period		—			—			4,333,138			6,338,261
Shares outstanding, end of period		—			—			3,466,075			4,333,138
Institutional Class
Shares issued		1,669,200			1,166,686			144			—
Shares reinvested		3,420			894			1			—
Shares redeemed		(28,072	)		(275,955	)		—			—
Change in shares outstanding		1,644,548			891,625			145			—
Shares outstanding, beginning of period		891,625			—			—			—
Shares outstanding, end of period		2,536,173			891,625			145			—

^(A)  Class A, Class C, Class Y and Institutional Class represent the period from commencement of operations (March 1, 2011) through March 31, 2011.

89

Notes to Financial Statements (Continued)

	Ultra Short Duration Fixed Income Fund
	Six Months Ended March 31, 2011 (Unaudited)			Year Ended September 30, 2010
Class Z
Shares issued		15,072,492			20,014,092
Shares reinvested		269,970			278,613
Shares redeemed		(12,255,517	)		(7,070,449	)
Change in shares outstanding		3,086,945			13,222,256
Shares outstanding, beginning of period		24,458,413			11,236,157
Shares outstanding, end of period		27,545,358			24,458,413

6. Federal Tax Information

Federal income tax — It is each Fund's policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. 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% 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 periods ended September 30, 2010 and 2009 was as follows:

	Capital Appreciation Fund		Core Plus Fixed Income Fund		Emerging Markets Equity Fund		Focused Equity Fund		Global Equity Fund
	Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2010		Period Ended September 30, 2010*		Year Ended September 30, 2010
From ordinary income	$	7,703	$	496,281	$	—	$	—	$	661
	Global Real Estate Fund		Healthcare and Biotechnology Fund				Intermediate Fixed Income Fund
	Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2009		Year Ended September 30, 2010		Year Ended September 30, 2009
From ordinary income	$	90,201	$	—	$	—	$	3,085,391	$	855,228

90

Notes to Financial Statements (Continued)

	International Fixed Income Fund		Large Cap Relative Value Fund		Market Neutral Equity Fund		Mid Cap Fund
	Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2009
From ordinary income	$	122,627	$	13,296	$	—	$	1,064,323	$	1,033,371
In excess of ordinary income		—		—		—		138,568		—
From long-term capital gains		—		—		—		—		551,095
	$	122,627	$	13,296	$	—	$	1,202,891	$	1,584,466
	Mid Cap Value Fund		Premium Yield Equity Fund				Sands Capital Select Growth Fund
	Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2009		Year Ended September 30, 2010		Year Ended September 30, 2009
From ordinary income	$	67,277	$	1,013,991	$	583,029	$	—	$	—
From tax return of capital		—		—		77,806		—		—
	$	67,277	$	1,013,991	$	660,835	$	—	$	—
	Short Duration Fixed Income Fund				Small Cap Core Fund		Small Cap Value Fund
	Year Ended September 30, 2010		Year Ended September 30, 2009		Year Ended September 30, 2010		Year Ended September 30, 2010		Year Ended September 30, 2009
From ordinary income	$	1,328,163	$	1,479,571	$	9,676	$	—	$	105,644
From long-term capital gains		—		—		—		—		135,276
From tax return of capital		—		—		—		—		49,414
	$	1,328,163	$	1,479,571	$	9,676	$	—	$	290,334

	Ultra Short Duration Fixed Income Fund
	Year Ended September 30, 2010		Year Ended September 30, 2009
From ordinary income	$	3,337,850	$	4,095,134

*  Represents the period from commencement of operations (December 31, 2009) through September 30, 2010.

91

Notes to Financial Statements (Continued)

The following information is computed on a tax basis for each item as of September 30, 2010:

	Capital Appreciation Fund			Core Plus Fixed Income Fund			Emerging Markets Equity Fund			Focused Equity Fund			Global Equity Fund
Tax cost of portfolio investments	$	6,122,367		$	23,860,195		$	136,820,392		$	1,917,586		$	4,767,424
Gross unrealized appreciation		275,932			775,721			17,969,998			143,502			483,051
Gross unrealized depreciation		(301,672	)		(26,082	)		(977,207	)		(72,642	)		(196,677	)
Net unrealized appreciation (depreciation)		(25,740	)		749,639			16,992,791			70,860			286,374
Net unrealized appreciation (depreciation) on foreign currency and translation of other assets and liabilities denominated in foreign currency		—			(36,484	)		689			—			345
Accumulated capital and other losses		—			(87,040	)		(71,151	)		—			(4,354	)
Undistributed ordinary income		215,881			203,885			841,830			62,536			51,340
Other temporary differences		(4,554	)		(74,746	)		(16,729	)		(8,934	)		(4,555	)
Accumulated earnings (deficit)	$	185,587		$	755,254		$	17,747,430		$	124,462		$	329,150
	Global Real Estate Fund			Healthcare and Biotechnology Fund			Intermediate Fixed Income Fund			International Fixed Income Fund			Large Cap Relative Value Fund
Tax cost of portfolio investments	$	4,187,447		$	25,671,450		$	102,661,250		$	8,668,327		$	3,534,475
Gross unrealized appreciation		303,990			4,578,104			5,760,855			490,336			477,889
Gross unrealized depreciation		(49,546	)		(2,216,628	)		(4,289	)		(108,401	)		(144,087	)
Net unrealized appreciation (depreciation)		254,444			2,361,476			5,756,566			381,935			333,802
Net unrealized appreciation (depreciation) on foreign currency and translation of other assets and liabilities denominated in foreign currency		(26	)		—			—			26,743			—
Accumulated capital and other losses		—			(9,361,607	)		(713,351	)		—			—
Undistributed ordinary income		228,414			—			266,677			754,673			23,164
Undistributed capital gains		3,734			—			—			—			—
Other temporary differences		(23,385	)		—			(259,815	)		(100,742	)		(4,555	)
Accumulated earnings (deficit)	$	463,181		$	(7,000,131	)	$	5,050,077		$	1,062,609		$	352,411
	Market Neutral Equity Fund			Mid Cap Fund			Mid Cap Value Fund			Premium Yield Equity Fund			Sands Capital Select Growth Fund
Tax cost of portfolio investments	$	30,089,853		$	117,215,308		$	41,360,162		$	39,180,238		$	561,005,845
Gross unrealized appreciation		3,484,539			18,712,523			1,197,058			4,259,349			138,680,033
Gross unrealized depreciation		(2,211,071	)		(1,385,462	)		(476,855	)		(2,293,769	)		(13,304,788	)
Net unrealized appreciation (depreciation)		1,273,468			17,327,061			720,203			1,965,580			125,375,245
Net unrealized appreciation (depreciation) on securities sold short		(1,087,774	)		—			—			—			—
Net unrealized appreciation (depreciation) on foreign currency and translation of other assets and liabilities denominated in foreign currency		—			—			—			(7	)		—
Accumulated capital and other losses		(408,205	)		(191,401,645	)		—			(8,852,440	)		(83,012,800	)
Undistributed ordinary income		—			—			350,401			94,001			—
Undistributed capital gains		—			—			1,624			—			—
Other temporary differences		(9,165	)		—			(38,687	)		(75,867	)		—
Accumulated earnings (deficit)	$	(231,676	)	$	(174,074,584	)	$	1,033,541		$	(6,868,733	)	$	42,362,445

92

Notes to Financial Statements (Continued)

	Short Duration Fixed Income Fund			Small Cap Core Fund			Small Cap Value Fund			Ultra Short Duration Fixed Income Fund
Tax cost of portfolio investments	$	43,584,565		$	109,441,436		$	58,513,183		$	237,181,097
Gross unrealized appreciation		1,122,891			8,357,502			12,246,868			1,425,645
Gross unrealized depreciation		(38,579	)		(3,811,260	)		(558,779	)		(521,724	)
Net unrealized appreciation (depreciation)		1,084,312			4,546,242			11,688,089			903,921
Accumulated capital and other losses		(5,486,664	)		—			(48,848,288	)		(14,558,920	)
Undistributed ordinary income		181,826			173,060			—			515,527
Undistributed capital gains		—			2,858			—			—
Other temporary differences		(102,104	)		(4,555	)		—			(378,105	)
Accumulated earnings (deficit)	$	(4,322,630	)	$	4,717,605		$	(37,160,199	)	$	(13,517,577	)

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, the tax treatment of real estate investment trusts, Passive Foreign Investment Companies and book/tax differences on securities contributed in-kind.

As of September 30, 2010, the Funds had the following capital loss carryforwards for federal income tax purposes.

Fund	Amount		Expires September 30,
Healthcare and Biotechnology Fund	$	5,781,344		2017
		3,580,263		2018
	$	9,361,607
Intermediate Fixed Income Fund	$	86,389		2015
		683		2017
		626,279		2018
	$	713,351
Market Neutral Equity Fund	$	3,708		2018
Mid Cap Fund	$	120,581,352		2017
		70,820,293		2018
	$	191,401,645
Premium Yield Equity Fund	$	3,084,301		2017
		5,768,139		2018
	$	8,852,440
Sands Capital Select Growth Fund	$	5,719,519		2011
		2,692,298		2014
		4,416,747		2015
		3,797,319		2017
		66,386,917		2018
	$	83,012,800

93

Notes to Financial Statements (Continued)

Fund	Amount		Expires September 30,
Short Duration Fixed Income Fund	$	1,994,293		2012
		96,050		2013
		1,027,850		2014
		852,134		2015
		295,319		2016
		1,193,230		2017
		7,423		2018
	$	5,466,299
Small Cap Value Fund	$	30,983,605		2017
		17,864,683		2018
	$	48,848,288
Ultra Short Duration Fixed Income Fund	$	6,699,046		2012
		371,187		2014
		164,819		2015
		3,223,694		2017
		3,334,355		2018
	$	13,793,101

The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.

The Sands Capital Select Growth Fund had $12,218,351 of capital losses expire unutilized during the year ended September 30, 2010.

From November 1, 2009 to September 30, 2010, the following Funds incurred the following net losses ("Post-October losses"). The Funds intend to elect to defer these losses and treat them as arising on October 1, 2010:

Fund	Amount
Core Plus Fixed Income Fund	$	87,040
Emerging Markets Equity Fund		71,151
Global Equity Fund		4,354
Market Neutral Equity Fund		404,497
Short Duration Fixed Income Fund		20,365
Ultra Short Duration Fixed Income Fund		765,819

Certain reclassifications, the result of permanent differences between financial statement and income tax reporting requirements, have been made to the components of capital. These reclassifications have no impact on the net assets or net asset value per share of the Funds and are designed to present the Funds' capital accounts on a tax basis. The following reclassifications which are primarily attributed to the tax treatment of net investment loss, foreign currency gain/loss, paydown gain/loss, expiration of capital loss carryforwards, real

94

Notes to Financial Statements (Continued)

estate investment trusts, securities contributed in-kind, Passive Foreign Investment Companies and stock issuance costs have been made to the following Funds for the year ended September 30, 2010:

	Paid-In Capital			Accumulated Net Investment Income (Loss)			Accumulated Net Realized Gains (Losses)
Capital Appreciation Fund	$	(947	)	$	947		$	—
Core Plus Fixed Income Fund	$	(947	)	$	(51,778	)	$	52,725
Emerging Markets Equity Fund	$	(947	)	$	(88,641	)	$	89,588
Focused Equity Fund	$	(161	)	$	161		$	—
Global Equity Fund	$	(947	)	$	(4,737	)	$	5,684
Global Real Estate Fund	$	(947	)	$	10,884		$	(9,937	)
Healthcare and Biotechnology Fund	$	(30,639	)	$	30,694		$	(55	)
Intermediate Fixed Income Fund	$	(2,667	)	$	(1,955	)	$	4,622
International Fixed Income Fund	$	(947	)	$	628,355		$	(627,408	)
Large Cap Relative Value Fund	$	(947	)	$	947		$	—
Market Neutral Equity Fund	$	(122,859	)	$	123,172		$	(313	)
Mid Cap Fund	$	(138,568	)	$	154,933		$	(16,365	)
Mid Cap Value Fund	$	(947	)	$	(703	)	$	1,650
Premium Yield Equity Fund	$	6,004		$	(425	)	$	(5,579	)
Sands Capital Select Growth Fund	$	(16,018,503	)	$	3,800,152		$	12,218,351
Short Duration Fixed Income Fund	$	—		$	119,234		$	(119,234	)
Small Cap Core Fund	$	(947	)	$	(26,365	)	$	27,312
Small Cap Value Fund	$	(13,272	)	$	38,915		$	(25,643	)
Ultra Short Duration Fixed Income Fund	$	1		$	785,776		$	(785,777	)

As of March 31, 2011, the Trust had the following federal tax cost resulting in net unrealized appreciation (depreciation) as follows:

	Federal Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Capital Appreciation Fund	$	7,189,444	$	782,994	$	(112,239	)	$	670,755
Core Plus Fixed Income Fund	$	27,508,142	$	579,247	$	(108,860	)	$	470,387
Emerging Markets Equity Fund	$	318,836,115	$	31,188,625	$	(5,619,837	)	$	25,568,788
Focused Equity Fund	$	107,497,308	$	5,171,611	$	(2,196,726	)	$	2,974,885
Global Equity Fund	$	3,805,768	$	563,973	$	(62,592	)	$	501,381
Global Real Estate Fund	$	3,998,854	$	397,870	$	(46,600	)	$	351,270
Healthcare and Biotechnology Fund	$	20,223,648	$	6,222,033	$	(51,419	)	$	6,170,614
Intermediate Fixed Income Fund	$	97,223,623	$	3,385,275	$	(649,647	)	$	2,735,628
International Fixed Income Fund	$	9,281,276	$	368,138	$	(227,819	)	$	140,319
Large Cap Relative Value Fund	$	4,773,734	$	1,139,104	$	(48,889	)	$	1,090,215
Market Neutral Equity Fund	$	26,982,891	$	5,561,397	$	(273,702	)	$	5,287,695
Mid Cap Fund	$	103,982,717	$	24,964,841	$	(1,083,835	)	$	23,881,006
Mid Cap Value Fund	$	52,211,962	$	7,247,204	$	(124,351	)	$	7,122,853
Premium Yield Equity Fund	$	37,256,772	$	6,529,718	$	(216,954	)	$	6,312,764
Sands Capital Select Growth Fund	$	888,780,610	$	305,109,629	$	(25,639,695	)	$	279,469,934
Short Duration Fixed Income Fund	$	42,129,963	$	760,128	$	(116,798	)	$	643,330
Small Cap Core Fund	$	175,388,249	$	29,529,758	$	(1,376,583	)	$	28,153,175
Small Cap Value Fund	$	57,779,821	$	4,521,649	$	(765,793	)	$	3,755,856
Ultra Short Duration Fixed Income Fund	$	264,740,827	$	1,178,113	$	(922,193	)	$	255,920

95

Notes to Financial Statements (Continued)

The Funds have analyzed their tax positions taken on Federal income tax returns for all open tax years (tax years ended September 30, 2007 through 2010) and have concluded that no provision for income tax is required in their financial statements.

The Regulated Investment Company Modernization Act of 2010 (the "Act") was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Funds. In general, the provisions of the Act will be effective for the Funds' fiscal year ending September 30, 2012. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each fund's pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers. Relevant information regarding the impact of the Act on the Funds, if any, will be contained within the "Federal Taxes" section of the financial statement notes for the fiscal year ending September 30, 2012.

7. Commitments and Contingencies

The Funds indemnify the Trust's officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

8. Concentrations/Risks

Certain Funds invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, the Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility on the Fund's net asset value and magnified effect on the total return.

9. Subsequent Events

During a meeting of the Board of Trustees held November 18, 2010, the Trustees unanimously approved (subject to shareholder approval) a reorganization providing for the transfer of all assets and liabilities of the Touchstone Healthcare and Biotechnology Fund to the Touchstone Large Cap Growth Fund, a series of Touchstone Strategic Trust, in exchange for shares of the Touchstone Large Cap Growth Fund and the subsequent liquidation of the Touchstone Healthcare and Biotechnology Fund. The merger took place on May 9, 2011.

During a special meeting of the Board of Trustees held April 12, 2011, the Trustees unanimously approved (subject to shareholder approval) a reorganization providing for the transfer of all assets and liabilities of the EARNEST Partners Fixed Income Trust (a series of The Nottingham Investment Trust II) to the Touchstone Core Plus Fixed Income Fund, in exchange for shares of the Touchstone Core Plus Fixed Income Fund and the subsequent liquidation of the EARNEST Partners Fixed Income Trust.

Also at the April 12, 2011 meeting, the Trustees approved the following effective April 19, 2011: the Touchstone Core Plus Fixed Income Fund changed sub-advisors from Bradford & Marzec LLC to EARNEST Partners LLC and an interim sub-advisory agreement (the "Interim Sub-advisory Agreement") between Touchstone and EARNEST Partners was put in place, the name of the Fund was changed to Touchstone Total Return Bond Fund, the Fund changed advisory fees to a flat fee of 0.35%, and expense limitations were changed to 0.90%, 1.65%, and 0.65% for Class A, Class C, and Class Y, respectively.

96

Notes to Financial Statements (Continued)

During a meeting of the Board of Trustees held on May 19, 2011, the Trustees unanimously approved a new Sub-Advisory Agreement between Touchstone and EARNEST Partners. The new Sub-Advisory Agreement replaced an interim sub-advisory agreement between Touchstone and EARNEST Partners that was approved at a special telephonic Board meeting on April 12, 2011.

There were no other subsequent events that necessitated recognition or disclosures.

97

Portfolio of Investments
Touchstone Capital Appreciation Fund – March 31, 2011 (Unaudited)

Common Stocks — 94.4%	Shares		Market Value
Information Technology — 21.3%
Accenture PLC - Class A		5,165	$	283,920
Cisco Systems, Inc.		13,540		232,211
Dell, Inc.*		13,515		196,103
Google, Inc. - Class A*		465		272,587
Microsoft Corp.		12,830		325,369
Paychex, Inc.		4,745		148,803
QUALCOMM, Inc.		4,160		228,093
				1,687,086
Health Care — 18.4%
Abbott Laboratories		3,000		147,150
Celgene Corp.*		2,005		115,348
Gilead Sciences, Inc.*		2,980		126,471
Johnson & Johnson		4,620		273,735
Medtronic, Inc.		7,995		314,603
Patterson Cos., Inc.		7,405		238,367
Stryker Corp.		3,910		237,728
				1,453,402
Consumer Staples — 13.6%
Colgate-Palmolive Co.		2,395		193,420
CVS Caremark Corp.		8,615		295,667
PepsiCo, Inc.		3,950		254,420
Procter & Gamble Co. (The)		2,300		141,680
Wal-Mart Stores, Inc.		3,610		187,900
				1,073,087
Industrials — 10.3%
Danaher Corp.		4,430		229,917
FedEx Corp.		1,640		153,422
Rockwell Collins, Inc.		1,785		115,722
United Technologies Corp.		3,685		311,935
				810,996
Energy — 10.0%
Chevron Corp.		1,475		158,459
Exxon Mobil Corp.		3,875		326,004
Schlumberger Ltd.		3,290		306,825
				791,288
Consumer Discretionary — 9.7%
Lowe's Cos., Inc.		6,965		184,085
O'Reilly Automotive, Inc.*		3,840		220,646
Staples, Inc.		9,540		185,267
Yum! Brands, Inc.		3,415		175,463
				765,461
Financials — 7.9%
Goldman Sachs Group, Inc. (The)		1,390		220,273
JPMorgan Chase & Co.		5,345		246,405
Lazard Ltd. - Class A		3,775		156,964
				623,642
Materials — 3.2%
Monsanto Co.		3,480		251,465
Total Common Stocks			$	7,456,427

	Shares		Market Value
Investment Fund — 5.1%
Touchstone Institutional Money Market Fund^		403,772	$	403,772
Total Investment Securities — 99.5% (Cost $7,189,416)			$	7,860,199
Other Assets in Excess of Liabilities — 0.5%				41,141
Net Assets — 100.0%			$	7,901,340

*  Non-income producing security.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

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	$	7,456,427	$	—	$	—	$	7,456,427
Investment Funds		403,772		—		—		403,772
							$	7,860,199

See accompanying notes to financial statements.

98

Portfolio of Investments
Touchstone Core Plus Fixed Income Fund – March 31, 2011 (Unaudited)

Principal Amount			Market Value
		Corporate Bonds — 46.7% Financials — 24.2%
$	75,000	Allied Capital Corp., 6.000%, 4/1/12	$	75,154
	40,000	American International Group, Inc., 6.400%, 12/15/20		42,692
	30,000	Ameriprise Financial, Inc., 7.300%, 6/28/19		35,836
	30,000	Ameriprise Financial, Inc., 5.300%, 3/15/20		31,800
	31,000	Bank of America Corp., 8.000%, 12/31/49 (a)		33,336
	30,000	Bank of America Corp., 5.750%, 12/1/17		31,608
	205,000	Bank of America Corp., 4.500%, 4/1/15		212,874
	25,000	Bank of America Corp. MTN, 7.375%, 5/15/14		28,233
	75,000	Boston Properties LP, 4.125%, 5/15/21		71,333
	130,000	Brandywine Operating Partnership LP, 7.500%, 5/15/15		146,874
	172,000	Canadian Imperial Bank of Commerce/Canada, Ser DPNT, 5.000%, 9/10/12		184,641
	40,000	Capital One Capital V, 10.250%, 8/15/39		43,400
	20,000	Capital One Financial Corp., 7.375%, 5/23/14		22,956
	17,000	CB Richard Ellis Services, Inc., 11.625%, 6/15/17		20,060
	25,000	CB Richard Ellis Services, Inc., 6.625%, 10/15/20		25,750
	25,000	CIT Group, Inc., 7.000%, 5/1/17		25,031
	210,000	Citigroup, Inc., 5.500%, 10/15/14		226,506
	35,000	CNA Financial Corp., 5.750%, 8/15/21		35,834
	100,000	CommonWealth REIT, 5.875%, 9/15/20		101,992
	120,000	Credit Suisse AG, 5.400%, 1/14/20		121,197
	15,000	Developers Diversified Realty Corp., 7.500%, 4/1/17		16,919
	15,000	Developers Diversified Realty Corp., 9.625%, 3/15/16		18,274
	100,000	Digital Realty Trust LP, 4.500%, 7/15/15		102,710
	20,000	Digital Realty Trust LP, 5.875%, 2/1/20		20,875
	31,000	Equinix, Inc., 8.125%, 3/1/18		33,557
	25,000	Fidelity National Financial, Inc., 6.600%, 5/15/17		25,863
	120,000	Fifth Third Bancorp, 4.500%, 6/1/18		116,814
	50,000	General Electric Capital Corp., 5.300%, 2/11/21		50,783
	100,000	General Electric Capital Corp., 2.250%, 11/9/15		96,067
	65,000	General Electric Capital Corp., 4.625%, 1/7/21		64,013
	50,000	Genworth Financial, Inc., 7.625%, 9/24/21		50,160
	110,000	Glencore Funding LLC, 144a, 6.000%, 4/15/14		117,820

Principal Amount			Market Value
$	100,000	Goldman Sachs Group, Inc., 6.250%, 2/1/41	$	99,586
	45,000	Goldman Sachs Group, Inc., 5.375%, 3/15/20		45,690
	40,000	Goldman Sachs Group, Inc. MTN, 6.000%, 5/1/14		43,924
	250,000	Goodman Funding Pty Ltd., 144a, 6.375%, 4/15/21		249,463
	60,000	HCP, Inc., 5.375%, 2/1/21		60,593
	120,000	Health Care REIT, Inc., 5.250%, 1/15/22		117,080
	35,000	Host Hotels & Resorts LP, Ser O, 6.375%, 3/15/15		35,744
	95,000	Icahn Enterprises LP/Icahn Enterprises Finance Corp., 8.000%, 1/15/18		97,613
	15,000	International Lease Finance Corp., 144a, 8.875%, 9/15/15		16,500
	25,000	Jefferies Group, Inc., 6.875%, 4/15/21		26,553
	25,000	Jefferies Group, Inc., 6.250%, 1/15/36		23,108
	65,000	Jefferies Group, Inc., 8.500%, 7/15/19		76,680
	85,000	JP Morgan Chase & Co., 6.300%, 4/23/19		94,085
	80,000	KeyCorp, 5.100%, 3/24/21		79,506
	90,000	KeyCorp MTN, 3.750%, 8/13/15		90,940
	165,000	Kilroy Realty LP, 6.625%, 6/1/20		169,247
	100,000	KKR Group Finance Co. LLC, 144a, 6.375%, 9/29/20		102,289
	65,000	Lazard Group LLC, 7.125%, 5/15/15		71,408
	35,000	Lender Processing Services, Inc., 8.125%, 7/1/16		36,444
	90,000	Liberty Mutual Group, Inc., 144a, 10.750%, 6/15/58 (a)		117,000
	58,000	Lincoln National Corp., 8.750%, 7/1/19		73,443
	25,000	Lincoln National Corp., 4.300%, 6/15/15		25,938
	215,000	Lloyds TSB Bank PLC MTN, 144a, 6.500%, 9/14/20		211,368
	40,000	Mack-Cali Realty LP, 7.750%, 8/15/19		48,198
	25,000	Macquarie Group Ltd., 144a, 7.300%, 8/1/14		27,737
	50,000	Macquarie Group Ltd., 144a, 7.625%, 8/13/19		55,432
	75,000	MetLife, Inc., 6.750%, 6/1/16		86,696
	105,000	MetLife, Inc., 10.750%, 8/1/39		144,900
	100,000	Morgan Stanley MTN, 5.625%, 9/23/19		102,133
	75,000	NASDAQ OMX Group, Inc., 5.550%, 1/15/20		73,445
	51,000	National Money Mart Co., 10.375%, 12/15/16		56,865
	45,000	National Retail Properties, Inc., 6.875%, 10/15/17		48,481
	135,000	National Rural Utilities Cooperative Finance Corp., 10.375%, 11/1/18		184,326
	75,000	Nationwide Mutual Insurance Co., 144a, 9.375%, 8/15/39		91,208
	75,000	Pacific Life Insurance Co., 144a, 9.250%, 6/15/39		98,583

99

Touchstone Core Plus Fixed Income Fund (Continued)

Principal Amount			Market Value
		Corporate Bonds — 46.7% (Continued)
$	75,000	PPF Funding, Inc., 144a, 5.700%, 4/15/17	$	76,797
	75,000	Principal Financial Group, Inc., 7.875%, 5/15/14		86,651
	130,000	Raymond James Financial, Inc., 8.600%, 8/15/19		155,415
	35,000	Regions Financial Corp., 5.750%, 6/15/15		35,656
	40,000	Regions Financial Corp., 7.750%, 11/10/14		43,200
	40,000	Senior Housing Properties Trust, 6.750%, 4/15/20		42,341
	210,000	Simon Property Group LP, 10.350%, 4/1/19		289,455
	150,000	Standard Chartered PLC, 144a, 3.850%, 4/27/15		153,505
	100,000	SunTrust Bank, 7.250%, 3/15/18		113,663
	85,000	Tanger Properties LP, 6.125%, 6/1/20		91,626
	40,000	Terremark Worldwide, Inc., 12.000%, 6/15/17		49,500
	145,000	US Bancorp, 3.442%, 2/1/16		144,561
	115,000	Validus Holdings Ltd., 8.875%, 1/26/40		120,767
	20,000	Willis North America, Inc., 6.200%, 3/28/17		21,315
	45,000	Willis North America, Inc., 7.000%, 9/29/19		48,734
	80,000	Zions Bancorp., 7.750%, 9/23/14		86,881
				6,773,235
		Consumer Discretionary — 4.4%
	12,000	AMC Entertainment, Inc., 8.750%, 6/1/19		13,020
	165,000	Best Buy Co., Inc., 5.500%, 3/15/21		161,900
	125,000	Comcast Corp., 6.450%, 3/15/37		128,054
	40,000	Cooper Tire & Rubber Co., 8.000%, 12/15/19		42,100
	35,000	DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 6.375%, 3/1/41		35,212
	40,000	DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 3.500%, 3/1/16		40,087
	25,000	DISH DBS Corp., 6.625%, 10/1/14		26,469
	6,000	GameStop Corp., 8.000%, 10/1/12		6,127
	56,000	GeoEye, Inc., 8.625%, 10/1/16		59,640
	52,000	Goodyear Tire & Rubber Co., 10.500%, 5/15/16		58,240
	95,000	Home Depot, Inc., 5.950%, 4/1/41		94,735
	65,000	Lennar Corp., 6.950%, 6/1/18		64,350
	30,000	Netflix, Inc., 8.500%, 11/15/17		33,788
	30,000	Pokagon Gaming Auth., 144a, 10.375%, 6/15/14		31,050
	10,000	Royal Caribbean Cruises Ltd., 6.875%, 12/1/13		10,675
	5,000	Scientific Games International, Inc., 9.250%, 6/15/19		5,488
	10,000	Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 5/1/12		10,587

Principal Amount			Market Value
$	7,000	Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 10/15/14	$	8,001
	15,000	Tenneco, Inc., 6.875%, 12/15/20		15,525
	60,000	Time Warner Cable, Inc., 5.875%, 11/15/40		56,379
	80,000	Time Warner Cable, Inc., 8.750%, 2/14/19		99,739
	35,000	Time Warner, Inc., 6.250%, 3/29/41		34,774
	31,000	Toys R Us Property Co. I LLC, 10.750%, 7/15/17		35,185
	10,000	Videotron Ltee, 6.875%, 1/15/14		10,137
	50,000	WMG Holdings Corp., 9.500%, 12/15/14 †		51,000
	20,000	Wyndham Worldwide Corp., 7.375%, 3/1/20		22,063
	55,000	XM Satellite Radio, Inc., 144a, 13.000%, 8/1/13		65,313
				1,219,638
		Telecommunication Services — 3.4%
	65,000	British Telecommunications PLC, 9.875%, 12/15/30		89,910
	34,000	Frontier Communications Corp., 7.875%, 1/15/27		32,470
	30,000	MetroPCS Wireless, Inc., 6.625%, 11/15/20		29,962
	65,000	NII Capital Corp., 7.625%, 4/1/21		66,462
	77,000	Qwest Communications International, Inc., Ser B, 7.500%, 2/15/14		78,251
	60,000	Qwest Corp., 8.875%, 3/15/12		64,200
	90,000	Rogers Communications, Inc., 7.500%, 3/15/15		106,240
	65,000	Sprint Nextel Corp., 8.375%, 8/15/17 †		72,394
	75,000	Telecom Italia Capital SA, 7.175%, 6/18/19		81,985
	55,000	Telefonica Emisiones SAU, 3.992%, 2/16/16		55,266
	220,000	Verizon Communications, Inc., 6.350%, 4/1/19		250,157
	29,000	Windstream Corp., 7.000%, 3/15/19		29,218
				956,515
		Energy — 3.4%
	50,000	Berry Petroleum Co., 10.250%, 6/1/14		58,000
	70,000	Bill Barrett Corp., 9.875%, 7/15/16		78,750
	35,000	BP Capital Markets PLC, 3.875%, 3/10/15		36,343
	40,000	BP Capital Markets PLC, 4.500%, 10/1/20		39,694
	60,000	BP Capital Markets PLC, 4.742%, 3/11/21		60,112
	75,000	Chesapeake Energy Corp., 6.125%, 2/15/21		77,437
	40,000	Chesapeake Energy Corp., 6.625%, 8/15/20		42,600
	28,000	Denbury Resources, Inc., 8.250%, 2/15/20		31,290
	34,000	Encore Acquisition Co., 9.500%, 5/1/16		38,335

100

Touchstone Core Plus Fixed Income Fund (Continued)

Principal Amount			Market Value
		Corporate Bonds — 46.7% (Continued)
$	100,000	Expro Finance Luxembourg SCA, 144a, 8.500%, 12/15/16	$	99,000
	50,000	Geokinetics Holdings USA, Inc., 9.750%, 12/15/14		48,063
	72,000	Hornbeck Offshore Services, Inc., 8.000%, 9/1/17		74,340
	10,000	Linn Energy LLC/Linn Energy Finance Corp., 144a, 8.625%, 4/15/20		11,100
	65,000	Marathon Petroleum Corp., 144a, 5.125%, 3/1/21		65,519
	75,000	Petrobras International Finance Co. - Pifco, 6.750%, 1/27/41		77,266
	35,000	Plains Exploration & Production Co., 6.625%, 5/1/21		35,000
	39,000	Plains Exploration & Production Co., 7.750%, 6/15/15		40,706
	30,000	QEP Resources, Inc., 6.875%, 3/1/21		31,500
				945,055
		Utilities — 2.9%
	30,000	AES Corp., 7.750%, 10/15/15		32,400
	125,000	Ameren Corp., 8.875%, 5/15/14		143,793
	30,000	Copano Energy LLC/Copano Energy Finance Corp., 7.125%, 4/1/21		30,375
	80,000	Duquesne Light Holdings, Inc., 144a, 6.400%, 9/15/20		81,390
	25,000	El Paso Pipeline Partners Operating Co. LLC, 6.500%, 4/1/20		27,491
	130,000	Energy Transfer Partners LP, 9.700%, 3/15/19		169,681
	115,000	Nevada Power Co., 6.500%, 8/1/18		131,953
	65,000	Plains All American Pipeline LP, 8.750%, 5/1/19		81,318
	30,000	Plains All American Pipeline LP/PAA Finance Corp., 3.950%, 9/15/15		30,938
	8,000	Regency Energy Partners LP/Regency Energy Finance Corp., 9.375%, 6/1/16		9,100
	65,000	Sempra Energy, 9.800%, 2/15/19		86,298
				824,737
		Industrials — 2.8%
	50,000	Air Canada, 144a, 9.250%, 8/1/15		52,125
	51,000	ARAMARK Corp., 8.500%, 2/1/15		53,168
	10,000	ARAMARK Corp., 5.000%, 6/1/12		10,200
	10,000	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 9.625%, 3/15/18		11,050
	64,000	Avis Budget Car Rental LLC/Avis Budget Finance, Inc., 7.750%, 5/15/16		66,000
	30,000	BE Aerospace, Inc., 6.875%, 10/1/20		31,050
	15,000	Bombardier, Inc., 144a, 7.750%, 3/15/20		16,294
	45,000	Canadian Pacific Railway Co., 7.250%, 5/15/19		53,316
	15,000	Case New Holland, Inc., 7.750%, 9/1/13		16,331

Principal Amount			Market Value
$	40,000	Clean Harbors, Inc., 144a, 7.625%, 8/15/16	$	42,450
	15,000	Education Management LLC/Education Management Finance Corp., 8.750%, 6/1/14		15,356
	45,000	FTI Consulting, Inc., 144a, 6.750%, 10/1/20		45,562
	20,000	Kansas City Southern Railway, 13.000%, 12/15/13		23,850
	60,000	Kemet Corp., 10.500%, 5/1/18		67,650
	100,000	Meccanica Holdings USA, 144a, 6.250%, 7/15/19		104,896
	40,000	Pall Corp., 5.000%, 6/15/20		40,705
	71,000	RailAmerica, Inc., 9.250%, 7/1/17		78,544
	20,000	Roper Industries, Inc., 6.250%, 9/1/19		22,058
	20,000	SPX Corp., 144a, 6.875%, 9/1/17		21,500
				772,105
		Materials — 2.0%
	140,000	ArcelorMittal, 5.500%, 3/1/21		137,957
	20,000	Ball Corp., 5.750%, 5/15/21		19,600
	5,000	Ball Corp., 6.750%, 9/15/20		5,225
	53,000	Clearwater Paper Corp., 10.625%, 6/15/16		59,890
	59,000	Domtar Corp., 10.750%, 6/1/17		73,750
	55,000	International Paper Co., 9.375%, 5/15/19		70,793
	30,000	Masco Corp., 7.125%, 3/15/20		31,046
	24,000	Neenah Paper, Inc., 7.375%, 11/15/14		24,660
	18,000	Rock-Tenn Co., 9.250%, 3/15/16		19,800
	10,000	Solutia, Inc., 7.875%, 3/15/20		10,850
	60,000	Solutia, Inc., 8.750%, 11/1/17		66,000
	37,000	Steel Dynamics, Inc., 6.750%, 4/1/15		37,879
				557,450
		Health Care — 1.6%
	35,000	Biomet, Inc., 10.000%, 10/15/17		38,369
	20,000	Boston Scientific Corp., 6.000%, 1/15/20		20,956
	70,000	Boston Scientific Corp., 4.500%, 1/15/15		72,197
	53,000	CHS/Community Health Systems, Inc., 8.875%, 7/15/15		55,915
	30,000	Coventry Health Care, Inc., 6.300%, 8/15/14		31,864
	72,000	HCA, Inc., 9.250%, 11/15/16		77,490
	25,000	HCA, Inc., 7.250%, 9/15/20		26,750
	65,000	Mylan, Inc., 144a, 6.000%, 11/15/18		65,000
	20,000	Mylan, Inc., 144a, 7.625%, 7/15/17		21,525
	25,000	Omnicare, Inc., 6.125%, 6/1/13		25,094
				435,160
		Consumer Staples — 1.2%
	40,000	Alliance One International, Inc., 10.000%, 7/15/16		40,550
	25,000	Altria Group, Inc., 9.700%, 11/10/18		32,878

101

Touchstone Core Plus Fixed Income Fund (Continued)

Principal Amount			Market Value
		Corporate Bonds — 46.7% (Continued)
$	45,000	Bunge Ltd. Finance Corp., 8.500%, 6/15/19	$	53,436
	127,312	CVS Pass-Through Trust, 144a, 7.507%, 1/10/32		146,020
	50,000	Dole Food Co., Inc., 13.875%, 3/15/14		60,500
				333,384
		Information Technology — 0.8%
	50,000	BMC Software, Inc., 7.250%, 6/1/18		56,885
	130,000	CC Holdings, 144a, 7.750%, 5/1/17		141,700
	11,000	Crown Castle International Corp., 9.000%, 1/15/15		12,128
	25,000	Stream Global Services, Inc., 11.250%, 10/1/14		26,750
				237,463
		Total Corporate Bonds	$	13,054,742
		U.S. Government Mortgage-Backed Obligations — 18.1%
	37,838	FHLMC, Pool #G03871, 5.500%, 2/1/38		40,610
	174,771	FHLMC, Pool #G02558, 6.000%, 1/1/37		190,688
	48,725	FHLMC, Pool #G04346, 6.000%, 5/1/38		53,255
	742,811	FHLMC Gold, Pool #A93853, 5.000%, 9/1/40		781,851
	161,364	FHLMC Gold, Pool #G01665, 5.500%, 3/1/34		173,337
	75,007	FHLMC Gold, Pool #G05888, 5.500%, 10/1/39		80,314
	162,046	FHLMC Gold, Pool #G04123, 6.000%, 3/1/38		176,349
	318,133	FNMA, Pool #AE8886, 3.500%, 12/1/25		319,416
	68,949	FNMA, Pool #AE8068, 4.000%, 12/1/40		68,006
	101,747	FNMA, Pool #AE8073, 4.000%, 12/1/40		100,291
	93,790	FNMA, Pool #AH6574, 4.000%, 3/1/41		92,506
	47,758	FNMA, Pool #AE9108, 5.000%, 12/1/40		50,052
	142,674	FNMA, Pool #889684, 5.500%, 8/1/37		153,322
	550,395	FNMA, Pool #995023, 5.500%, 8/1/37		591,472
	194,104	FNMA, Pool #929317, 5.500%, 3/1/38		208,409
	235,594	FNMA, Pool #995018, 5.500%, 6/1/38		252,662
	64,594	FNMA, Pool #831811, 6.000%, 9/1/36		70,882
	148,857	FNMA, Pool #888222, 6.000%, 2/1/37		162,600
	170,583	FNMA, Pool #911586, 6.000%, 4/1/37		186,332
	312,334	FNMA, Pool #889507, 6.000%, 5/1/38		339,999
	11,358	FNMA, Pool #995196, 6.000%, 7/1/38		12,406
	71,574	FNMA, Pool #190391, 6.000%, 9/1/38		77,914
	84,535	FNMA, Pool #995226, 6.000%, 11/1/38		92,102
	245,243	GNMA, Pool #783176, 4.000%, 11/15/40		245,754
	130,443	GNMA, Pool #712690, 5.000%, 4/15/39		138,902
	368,938	GNMA, Pool #698387, 5.000%, 7/15/39		393,091
		Total U.S. Government Mortgage-Backed Obligations	$	5,052,522

Principal Amount			Market Value
		Commercial Mortgage-Backed Securities — 14.6%
$	255,000	Banc of America Commercial Mortgage, Inc., Ser 2008-1, Class A4, 6.202%, 2/10/51 (a)	$	281,800
	59,807	Banc of America Funding Corp., Ser 2004-A, Class 2A1, 4.402%, 5/20/34 (a)		59,723
	99,712	Banc of America Funding Corp., Ser 2005-7, Class 3A2, 5.750%, 11/25/35		99,216
	116,029	Banc of America Funding Corp., Ser 2005-G, Class A3, 5.213%, 10/20/35 (a)		110,684
	194,000	Bear Stearns Commercial Mortgage Securities, Ser 2007-PW17, Class A4, 5.694%, 6/11/50 (a)		207,446
	155,000	Bear Stearns Commercial Mortgage Securities, Ser 2007-T28, Class A4, 5.742%, 9/11/42 (a)		168,290
	55,000	Citigroup Commercial Mortgage Trust, Ser 2006-C4, Class AM, 5.733%, 3/15/49 (a)		57,031
	146,000	Citigroup Commercial Mortgage Trust, Ser 2007-C6, Class A4, 5.698%, 12/10/49 (a)		157,969
	51,000	Commercial Mortgage Pass Through Certificates, Ser 2006-C7, Class A4, 5.769%, 6/10/46 (a)		55,680
	124,000	Commercial Mortgage Pass Through Certificates, Ser 2006-C7, Class AM, 5.794%, 6/10/46 (a)		128,863
	225,000	Commercial Mortgage Pass Through Certificates, Ser 2007-C9, Class A4, 5.815%, 12/10/49 (a)		244,136
	234,000	Credit Suisse Mortgage Capital Certificates, Ser 2006-C3, Class A3, 5.825%, 6/15/38 (a)		253,223
	176,000	Greenwich Capital Commercial Funding Corp., Ser 2007-GG9, Class A4, 5.444%, 3/10/39		186,290
	67,953	GSR Mortgage Loan Trust, Ser 2004-9, Class 4A1, 2.917%, 8/25/34 (a)		67,522
	29,800	GSR Mortgage Loan Trust, Ser 2005-4F, Class 6A1, 6.500%, 2/25/35		30,455
	80,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2006-LDP7, Class A4, 5.863%, 4/15/45 (a)		87,906
	88,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2006-LDP7, Class AM, 5.863%, 4/15/45		90,933
	257,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2006-LDP9, Class A3, 5.336%, 5/15/47		269,074

102

Touchstone Core Plus Fixed Income Fund (Continued)

Principal Amount			Market Value
		Commercial Mortgage-Backed Securities — 14.6% (Continued)
$	170,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2007-CB18, Class A4, 5.440%, 6/12/47	$	179,262
	171,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2007-CB20, Class A4, 5.794%, 2/12/51 (a)		184,190
	73,000	JP Morgan Mortgage Trust, Ser 2005-A2, Class 5A2, 4.298%, 4/25/35 (a)		72,941
	60,000	LB-UBS Commercial Mortgage Trust, Ser 2006-C7, Class A3, 5.347%, 11/15/38		63,475
	145,372	MASTR Asset Securitization Trust, Ser 2002-7, Class B1, 5.868%, 12/25/32 (a)		148,471
	207,000	Morgan Stanley Capital I, Ser 2008-T29, Class A4, 6.280%, 1/11/43 (a)		231,882
	33,753	Residential Asset Mortgage Products, Inc., Ser 2004-SL1, Class A7, 7.000%, 11/25/31		34,646
	22,768	Structured Adjustable Rate Mortgage Loan Trust, Ser 2004-12, Class 6A, 2.984%, 9/25/34 (a)		21,544
	94,058	Thornburg Mortgage Securities Trust, Ser 2007-4, Class 3A1, 6.171%, 9/25/37 (a)		94,386
	55,000	Wachovia Bank Commercial Mortgage Trust, Ser 2006-C27, Class AM, 5.795%, 7/15/45 (a)		56,713
	85,974	Wells Fargo Mortgage Backed Securities Trust, Ser 2005-AR16, Class 7A1, 5.206%, 10/25/35 (a)		85,174
	80,636	Wells Fargo Mortgage Backed Securities Trust, Ser 2005-AR7, Class 1A1, 5.083%, 5/25/35 (a)		79,152
	98,592	Wells Fargo Mortgage Backed Securities Trust, Ser 2005-AR8, Class 3A2, 2.861%, 6/25/35 (a)		94,375
	112,000	Wells Fargo Mortgage Backed Securities Trust, Ser 2006-AR1, Class 2A5, 5.413%, 3/25/36 (a)		104,417
	60,795	Wells Fargo Mortgage Backed Securities Trust, Ser 2007-5, Class 1A1, 5.500%, 5/25/37		60,777
	11,938	Wells Fargo Mortgage Backed Securities Trust, Ser 2007-5, Class 2A3, 5.500%, 5/25/22		11,910
		Total Commercial Mortgage-Backed Securities	$	4,079,556
		U.S. Treasury Obligations — 9.4%
	195,000	U.S. Treasury Note, 4.875%, 6/30/12		205,786
	1,075,000	U.S. Treasury Note, 1.875%, 4/30/14		1,093,561

Principal Amount			Market Value
$	730,000	U.S. Treasury Note, 3.500%, 5/15/20	$	739,870
	690,000	U.S. Treasury Note, 3.500%, 2/15/39		578,522
		Total U.S. Treasury Obligations	$	2,617,739
		Sovereign Government Obligations — 5.3%
	628,000	Australia Government Bond, Ser 118, 6.500%, 5/15/13		669,923
	161,000	Canadian Government Bond, 1.500%, 3/1/12		166,284
	40,000	Corp. Andina de Fomento, 8.125%, 6/4/19		48,070
	454,000	New Zealand Government Treasury Bill, 2.310%, 8/17/11 (b)		342,973
	157,000	United Kingdom Gilt, 5.000%, 3/7/12		261,410
		Total Sovereign Government Obligations	$	1,488,660
		Asset-Backed Securities — 2.5%
	240,000	Capital One Multi-Asset Execution Trust, Ser 2005-B1, Class B1, 4.900%, 12/15/17		259,125
	9,330	Countrywide Asset-Backed Certificates, Ser 2004-15, Class AF4, 4.614%, 12/25/32 (a)		9,232
	104,768	DB-UBS Mortgage Trust, Ser 2011-LC1A, Class A1, 144a, 3.742%, 11/10/46		106,141
	62,990	Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Ser 2005-1, Class 2A1, 5.587%, 2/25/20 (a)		63,911
	108,000	GE Capital Commercial Mortgage Corp., Ser 2004-C2, Class A4, 4.893%, 3/10/40		114,245
	61,300	Morgan Stanley Home Equity Loan Trust, Ser 2007-2, Class A1, 0.350%, 4/25/37 (a)		56,214
	100,000	Newcastle Investment Trust, Ser 2010-MH1, Class M1, 144a, 6.000%, 7/10/35		95,528
		Total Asset-Backed Securities	$	704,396
		Collateralized Mortgage Obligations — 1.0%
	141,000	FHLMC Multifamily Structured Pass Through Certificates, Ser K009, Class A2, 3.808%, 8/25/20		137,819
	135,000	FHLMC Multifamily Structured Pass Through Certificates, Ser K701, Class A2, 3.882%, 11/25/17 (a)		137,416
		Total Collateralized Mortgage Obligations	$	275,235
		Municipal Bond — 0.2% Illinois — 0.2%
	55,000	State of Illinois UTGO, Ser 2011 5.365%, 3/1/17	$	54,956

103

Touchstone Core Plus Fixed Income Fund (Continued)

Shares			Market Value
		Investment Funds — 2.3%
	126,108	Invesco Liquid Assets Portfolio **	$	126,108
	524,615	Touchstone Institutional Money Market Fund^		524,615
		Total Investment Funds	$	650,723
		Total Investment Securities — 100.1% (Cost $27,508,097)	$	27,978,529
		Liabilities in Excess of Other Assets — (0.1%)		(17,257	)
		Net Assets — 100.0%	$	27,961,272

^(a)  Variable rate security – the rate reflected is the rate in effect as of March 31, 2011.

^(b)  Zero Coupon security – The rate reported was the effective yield as of March 31, 2011.

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $121,650.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

FNMA – Federal National Mortgage Association

FHLMC – Federal Home Loan Mortgage Corp.

GNMA – Government National Mortgage Association

MTN – Medium Term Note

PLC – Public Limited Company

REIT – Real Estate Investment Trust

UTGO – Unlimited Tax General Obligation

144a – This is a restricted security that was sold in a transaction exempt from Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2011, these securities were valued at $2,529,815 or 9.0% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

Other Information:

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

Valuation Inputs at Reporting Date:

Description	Level 1		Level 2			Level 3		Total
Corporate Bonds	$	—	$	13,054,742		$	—	$	13,054,742
U.S. Government Mortgage-Backed Obligations		—		5,052,522			—		5,052,522
Commercial Mortgage-Backed Securities		—		4,079,556			—		4,079,556
U.S. Treasury Obligations		—		2,617,739			—		2,617,739
Sovereign Government Obligations		—		1,488,660			—		1,488,660
Asset-Backed Securities		—		704,396			—		704,396
Investment Funds		650,723		—			—		650,723
Collateralized Mortgage Obligations		—		275,235			—		275,235
Municipal Bond		—		54,956			—		54,956
								$	27,978,529
	Level 1		Level 2			Level 3		Total
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(985	)	$	—	$	(985	)

*  Other financial instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized depreciation.

See accompanying notes to financial statements.

104

Touchstone Core Plus Fixed Income Fund (Continued)

Forward Foreign Currency Exchange Contracts

	Contract To
Counterparty	Value Date	Receive		Deliver		Unrealized Appreciation/ (Depreciation)
Deutsche Bank	05/25/2011	GBP	79,000	USD	127,172	$	(524	)
Deutsche Bank	05/25/2011	USD	141,019	GBP	87,000		1,546
Westpac Bank	05/11/2011	USD	73,970	NZD	96,831		262
Westpac Bank	06/07/2011	USD	326,864	AUD	324,898		(6,435	)
Westpac Bank	06/07/2011	USD	126,348	AUD	123,000		168
Westpac Bank	06/07/2011	AUD	58,000	USD	57,790		1,710
Westpac Bank	06/07/2011	AUD	67,000	USD	66,444		2,288
						$	(985	)

105

Portfolio of Investments
Touchstone Emerging Markets Equity Fund – March 31, 2011 (Unaudited)

Common Stocks — 97.4%	Shares		Market Value
Financials — 20.1%
Akbank TAS (Turkey)		983,306	$	4,776,267
Banco Bradesco SA (Preference) (Brazil)		303,399		6,199,363
Bank Mandiri Tbk PT (Indonesia)		5,431,111		4,241,350
BS Financial Group, Inc. (South Korea)*		277,270		4,018,955
China Overseas Land & Investment Ltd. (Hong Kong)		2,112,222		4,295,833
CIMB Group Holdings Bhd (Malaysia)		1,643,500		4,449,591
First Pacific Co. (Hong Kong)		4,969,148		4,446,236
Grupo Financiero Banorte SAB de CV - Class O (Mexico)		831,319		3,913,915
Industrial & Commercial Bank of China - Class H (China)		5,420,298		4,501,498
JPM Piramal Healthcare Ltd Pnote, Series 0003 (Netherlands)*		19,300		180,384
Kasikornbank PCL (Thailand)		1,271,900		5,530,000
Keppel Land Ltd. (Singapore)		1,338,665		4,768,430
Land and Houses PCL (Thailand)		15,012,491		3,449,721
Shinhan Financial Group Co. Ltd. (South Korea)		74,900		3,403,770
Standard Bank Group Ltd. (South Africa)		265,469		4,081,120
Wharf Holdings Ltd. (Hong Kong)		811,056		5,593,993
				67,850,426
Materials — 15.6%
China BlueChemical Ltd. (China)		5,282,882		4,326,251
Cia de Minas Buenaventura SA ADR (Peru)		91,528		3,932,958
Eldorado Gold Corp. (Canada) †		374,952		6,086,897
Fresnillo PLC (United Kingdom)		229,816		5,688,591
Gerdau SA (Preference) (Brazil)		287,672		3,557,467
Impala Platinum Holdings Ltd. (South Africa)		133,813		3,871,775
POSCO (South Korea)		5,786		2,663,686
Randgold Resources Ltd. ADR (Jersey, C.I.)		60,911		4,966,683
Siam Cement PCL (Thailand)		170,000		2,130,269
Siam Cement PCL (Non-Voting) (Thailand)		170,398		1,977,507
Southern Copper Corp. (United States)		75,700		3,048,439
Vale SA ADR (Brazil)		111,894		3,731,665
Vale SA (Preference) (Brazil)		132,191		3,840,271
Yamana Gold, Inc. (Canada)		214,187		2,646,684
				52,469,143
Consumer Discretionary — 15.1%
Bharat Forge Ltd. (India)		562,900		4,383,791
Cafe de Coral Holdings Ltd. (Hong Kong)		1,207,762		2,822,777
Consorcio ARA SAB de CV (Mexico)		2,378,169		1,461,557
Daphne International Holdings Ltd. (Hong Kong)		5,152,166		3,868,157
Foschini Ltd. (South Africa)		408,101		5,106,541
Giant Manufacturing Co. Ltd. (Taiwan)		1,043,778		4,241,629
Hankook Tire Co. Ltd. (South Korea)		201,380		6,581,406
JD Group Ltd. (South Africa)		473,513		3,387,735
Lojas Americanas SA (Preference) (Brazil)		513,254		4,281,701
Lojas Renner SA (Brazil)		234,422		7,630,040

	Shares		Market Value
Ports Design Ltd. (Hong Kong)		1,599,971	$	3,690,081
Woolworths Holdings Ltd. (South Africa)		796,400		3,290,374
				50,745,789
Energy — 12.5%
CNOOC Ltd. (Hong Kong)		2,303,761		5,804,901
Oil & Natural Gas Corp. Ltd. (India)		584,300		3,816,719
PetroChina Co. Ltd. - Class H (China)		1,801,215		2,727,798
Petroleo Brasileiro SA (Preference) (Brazil)		439,683		7,661,766
PTT Exploration & Production PCL (Thailand)		537,500		3,234,419
Reliance Industries Ltd. (India)		171,200		4,027,490
Tenaris SA ADR (Luxembourg) †		109,716		5,426,553
Thai Oil PCL (Thailand)		1,878,400		5,170,336
Tupras Turkiye Petrol Rafine (Turkey)		141,979		4,174,636
				42,044,618
Consumer Staples — 9.7%
British American Tobacco Malaysia Bhd (Malaysia)		219,100		3,476,664
Fomento Economico Mexicano SAB de CV ADR (Mexico)		36,673		2,152,705
Indofood CBP Sukses Makmur TBK PT (Indonesia)*		500		304
ITC Ltd. (India)		1,142,900		4,666,938
Kimberly-Clark de Mexico SAB de CV - Class A (Mexico)		650,008		4,043,406
Massmart Holdings Ltd. (South Africa)		245,513		5,088,815
SABMiller PLC (United Kingdom)		119,602		4,235,432
Tingyi Cayman Islands Holding Corp. (China)		2,003,575		4,899,113
Wal-Mart de Mexico SAB de CV (Mexico)		1,423,766		4,273,291
				32,836,668
Information Technology — 8.3%
ASM Pacific Technology Ltd. (Hong Kong)		489,519		6,145,301
Infosys Technologies Ltd. (India)		64,400		4,680,787
Samsung Electronics Co. Ltd. (South Korea)		6,066		5,153,847
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)		2,208,000		5,301,032
VTech Holdings Ltd. (Hong Kong) †		575,190		6,525,704
				27,806,671
Telecommunication Services — 5.7%
America Movil SAB de CV, Series L ADR (Mexico)		72,180		4,193,658
Bharti Airtel Ltd. (India)		607,600		4,869,520
MTN Group Ltd. (South Africa)		217,190		4,384,573
Telekomunikasi Indonesia Tbk PT (Indonesia)		3,469,054		2,928,228
Turkcell Iletisim Hizmet AS (Turkey)		483,094		2,859,674
				19,235,653
Industrials — 5.4%
All America Latina Logistica SA (Brazil)		453,705		3,737,686
Bharat Heavy Electricals Ltd. (India)		78,300		3,621,605

106

Touchstone Emerging Markets Equity Fund (Continued)

Common Stocks — 97.4% (Continued)	Shares		Market Value
Trakya Cam Sanayi AS (Turkey)		2,342,980	$	5,477,904
Weichai Power Co. Ltd. - Class H (China)		891,966		5,418,156
				18,255,351
Utilities — 3.9%
Cez AS (Czech Republic)		103,138		5,270,966
Cia Energetica de Minas Gerais (Preference) (Brazil)		226,153		4,305,170
Enersis SA (Chile)		8,647,323		3,602,674
				13,178,810
Health Care — 1.1%
Teva Pharmaceutical Industries Ltd. ADR (Israel)		72,289		3,626,739
Total Common Stocks			$	328,049,868
Investment Funds — 4.9%
Invesco Liquid Assets Portfolio **		8,740,784		8,740,784
Touchstone Institutional Money Market Fund^		7,614,251		7,614,251
Total Investment Funds			$	16,355,035
Total Investment Securities — 102.3% (Cost $318,835,927)			$	344,404,903
Liabilities in Excess of Other Assets — (2.3%)				(7,803,355	)
Net Assets — 100.0%			$	336,601,548

*  Non-income producing security.

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $8,530,432.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	327,869,484	$	180,384	$	—	$	328,049,868
Investment Funds		16,355,035		—		—		16,355,035
							$	344,404,903

See accompanying notes to financial statements.

107

Portfolio of Investments
Touchstone Focused Equity Fund – March 31, 2011 (Unaudited)

Common Stocks — 93.1%	Shares		Market Value
Financials — 24.7%
Allstate Corp.		180,056	$	5,722,180
Bank of America Corp.		512,756		6,835,037
Barclays PLC ADR		145,248		2,634,799
Fidelity National Financial, Inc. - Class A		315,097		4,452,321
Goldman Sachs Group, Inc. (The)		25,636		4,062,537
SEI Investments Co.		91,116		2,175,850
				25,882,724
Information Technology — 16.4%
Arrow Electronics, Inc.*		7,810		327,083
Dell, Inc.*		191,516		2,778,897
Hewlett-Packard Co.		76,261		3,124,413
Ingram Micro, Inc. - Class A*		151,173		3,179,168
Insight Enterprises, Inc.*		169,491		2,886,432
Nokia Corp. ADR †		568,483		4,837,790
				17,133,783
Consumer Discretionary — 13.2%
Comcast Corp. - Class A		92,104		2,276,811
International Speedway Corp. - Class A		61,004		1,817,919
RadioShack Corp.		159,494		2,394,005
Skechers U.S.A., Inc. - Class A*		109,901		2,257,366
Speedway Motorsports, Inc.		74,195		1,185,636
Time Warner Cable, Inc.		53,655		3,827,748
				13,759,485
Health Care — 11.4%
Omnicare, Inc.		88,817		2,663,622
UnitedHealth Group, Inc.		83,030		3,752,956
WellPoint, Inc.		79,186		5,526,391
				11,942,969
Energy — 8.6%
EnCana Corp. †		174,729		6,033,392
Noble Corp.		63,845		2,912,609
				8,946,001
Industrials — 8.4%
Alliant Techsystems, Inc.		49,496		3,497,883
Ducommun, Inc.		80,428		1,922,229
RailAmerica, Inc.*		198,207		3,377,447
				8,797,559
Consumer Staples — 6.7%
CVS Caremark Corp.		81,359		2,792,241
Heineken NV ADR		67,081		1,831,311
Kraft Foods, Inc. - Class A		76,777		2,407,727
				7,031,279
Materials — 2.5%
Cemex SAB de CV ADR*		296,499		2,647,734
Telecommunication Services — 1.2%
Deutsche Telekom AG ADR		80,590		1,242,698
Total Common Stocks			$	97,384,232

	Shares		Market Value
Investment Funds — 12.5%
Invesco Liquid Assets Portfolio **		6,119,266	$	6,119,266
Touchstone Institutional Money Market Fund^		6,968,695		6,968,695
Total Investment Funds			$	13,087,961
Total Investment Securities — 105.6% (Cost $107,489,638)			$	110,472,193
Liabilities in Excess of Other Assets — (5.6%)				(5,813,121	)
Net Assets — 100.0%			$	104,659,072

*  Non-income producing security.

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $5,904,730.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	97,384,232	$	—	$	—	$	97,384,232
Investment Funds		13,087,961		—		—		13,087,961
							$	110,472,193

See accompanying notes to financial statements.

108

Portfolio of Investments
Touchstone Global Equity Fund – March 31, 2011 (Unaudited)

Preferred Stocks — 2.1%	Shares		Market Value
Consumer Staples — 2.1%
Henkel AG & Co. KGaA (Germany)		1,465	$	90,750
Common Stocks — 93.5% Materials — 19.6%
Agnico-Eagle Mines Ltd. (Canada)		1,252		83,070
CF Industries Holdings, Inc. (United States)		870		119,007
Fresnillo PLC (United Kingdom)		3,613		89,432
Goldcorp, Inc. (Canada)		1,528		76,094
Symrise AG (Germany)		3,481		102,070
Syngenta AG (Switzerland)		478		155,344
Yamana Gold, Inc. (Canada)		11,646		143,362
Yara International ASA (Norway)		1,873		94,899
				863,278
Consumer Staples — 15.1%
Australian Agricultural Co. Ltd. (Australia)*		61,102		101,438
Carlsberg A/S - Class B (Denmark)		953		102,614
Cott Corp. (Canada)*		7,473		62,773
Foster's Group Ltd. (Australia)		17,408		102,994
Koninklijke Ahold NV (Netherlands)		5,945		79,770
Oriflame Cosmetics SA (Luxembourg)		1,198		61,989
Sara Lee Corp. (United States)		8,542		150,937
				662,515
Industrials — 13.0%
Central Japan Railway Co. (Japan)		8		63,381
G4S PLC (United Kingdom)		15,378		63,006
Invensys PLC (United Kingdom)		18,479		102,331
Kansas City Southern (United States)*		2,166		117,939
Mills Estruturas e Servicos de Engenharia SA (Brazil)		5,700		62,493
Shaw Group, Inc. (United States)*		2,391		84,665
Smiths Group PLC (United Kingdom)		3,720		77,400
				571,215
Energy — 10.6%
BG Group PLC (United Kingdom)		2,680		66,682
Cairn Energy PLC (United Kingdom)*		19,417		143,938
Santos Ltd. (Australia)		4,400		70,770
Southwestern Energy Co. (United States)*		1,000		42,970
Ultra Petroleum Corp. (United States)*		1,500		73,875
Woodside Petroleum Ltd. (Australia)		1,420		68,739
				466,974
Telecommunication Services — 9.3%
Hutchison Telecommunications Hong Kong Holdings Ltd. (Hong Kong)		254,000		80,655
Mobile Telesystems OJSC ADR (Russia)		4,055		86,088
SK Telecom Co. Ltd. ADR (South Korea)		5,133		96,552
Softbank Corp. (Japan)		2,300		91,801
Swisscom AG (Switzerland)		125		55,729
				410,825

	Shares		Market Value
Health Care — 8.9%
Bayer AG (Germany)		850	$	65,820
Bristol-Myers Squibb Co. (United States)		3,596		95,042
Novartis AG (Switzerland)		1,333		72,303
Pfizer, Inc. (United States)		4,200		85,302
Sanofi-Aventis SA (France)		1,024		71,799
				390,266
Financials — 6.1%
Bank of Yokohama Ltd. (The) (Japan)		20,000		94,975
F&C Asset Management PLC (United Kingdom)		33,642		40,908
Kinnevik Investment AB - Class B (Sweden)		2,848		66,373
SBI Holdings, Inc. (Japan)		515		64,824
				267,080
Consumer Discretionary — 6.0%
Genting Bhd (Malaysia)		38,500		140,335
Television Broadcasts Ltd. (Hong Kong)		21,000		123,378
				263,713
Information Technology — 4.9%
Check Point Software Technologies Ltd. (Israel)*		2,455		125,328
Yahoo! Japan Corp. (Japan)		256		91,591
				216,919
Total Common Stocks			$	4,112,785
Investment Fund — 2.4%
Touchstone Institutional Money Market Fund^		103,614	$	103,614
Total Investment Securities — 98.0% (Cost $3,792,330)			$	4,307,149
Other Assets in Excess of Liabilities — 2.0%				89,526
Net Assets — 100.0%			$	4,396,675

*  Non-income producing security.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

ADR – American Depositary Receipt

PLC – Public Limited Company

109

Touchstone Global Equity Fund (Continued)

Other Information:

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

Valuation Inputs at Reporting Date:

Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	4,112,785	$	—	$	—	$	4,112,785
Investment Funds		103,614		—		—		103,614
Preferred Stocks		90,750		—		—		90,750
							$	4,307,149

See accompanying notes to financial statements.

110

Portfolio of Investments
Touchstone Global Real Estate Fund – March 31, 2011 (Unaudited)

Common Stocks — 98.5%	Shares		Market Value
Financials — 98.5%
Advance Residence Investment Corp. REIT (Japan)		13	$	25,569
Allgreen Properties Ltd. (Singapore)		30,000		25,704
Alstria Office REIT-AG (Germany)		5,963		82,902
AvalonBay Communities, Inc. REIT (United States)		700		84,056
BioMed Realty Trust, Inc. REIT (United States)		1,730		32,905
Boston Properties, Inc. REIT (United States)		935		88,685
BRE Properties, Inc. REIT (United States)		810		38,216
British Land Co. PLC REIT (United Kingdom)		7,862		69,682
Brookfield Properties Corp. (United States)		1,860		32,959
Camden Property Trust REIT (United States)		905		51,422
Canadian Apartment Properties REIT (Canada)		1,853		37,194
Canadian Real Estate Investment Trust REIT (Canada)		1,063		37,992
CapitaLand Ltd. (Singapore)		23,300		61,000
CapitaMall Trust REIT (Singapore)		25,600		38,182
CFS Retail Property Trust REIT (Australia)		23,110		43,983
China Overseas Land & Investment Ltd. (Hong Kong)		36,600		74,437
China Resources Land Ltd. (Hong Kong)		17,730		33,187
City Developments Ltd. (Singapore)		2,500		22,848
Citycon OYJ (Finland)		5,476		25,067
Commonwealth Property Office Fund REIT (Australia)		31,330		27,869
Corio NV REIT (Netherlands)		601		42,042
Derwent London PLC REIT (United Kingdom)		1,600		42,171
Developers Diversified Realty Corp. REIT (United States)		2,870		40,180
Development Securities PLC (United Kingdom)		3,650		13,087
DiamondRock Hospitality Co. REIT (United States)		1,880		21,000
Digital Realty Trust, Inc. REIT (United States) †		1,093		63,547
Douglas Emmett, Inc. REIT (United States)		1,820		34,125
DuPont Fabros Technology, Inc. REIT (United States)		710		17,217
Equity Residential REIT (United States)		1,765		99,564
Essex Property Trust, Inc. REIT (United States)		210		26,040
Eurocommercial Properties NV REIT (Netherlands)		1,086		53,806
Extendicare Real Estate Investment Trust REIT (Canada)		2,207		28,911
Fortune Real Estate Investment Trust REIT (Singapore)		68,000		33,569
Franshion Properties China Ltd. (Hong Kong)		66,000		19,006
General Growth Properties, Inc. REIT (United States)		1,876		29,040
Global Logistic Properties Ltd. (Singapore)*		27,250		40,426
Goodman Group REIT (Australia)		107,380		76,082
GPT Group REIT (Australia)		14,738		47,867

	Shares		Market Value
Great Portland Estates PLC REIT (United Kingdom)		4,570	$	28,284
Hang Lung Properties Ltd. (Hong Kong)		5,000		21,887
HCP, Inc. REIT (United States)		2,150		81,571
Health Care REIT, Inc. (United States)		1,410		73,940
Helical Bar PLC (United Kingdom)		3,560		15,465
Hongkong Land Holdings Ltd. (Hong Kong)		11,565		80,955
Host Hotels & Resorts, Inc. REIT (United States)		4,263		75,071
Hufvudstaden AB - Class A (Sweden)		2,033		24,205
Hysan Development Co. Ltd. (Hong Kong)		7,900		32,500
Japan Prime Realty Investment Corp. REIT (Japan)		13		35,102
Kerry Properties Ltd. (Hong Kong)		5,730		28,655
Kilroy Realty Corp. REIT (United States)		600		23,298
Kimco Realty Corp. REIT (United States)		2,845		52,177
Klepierre REIT (France)		719		29,183
Land Securities Group PLC REIT (United Kingdom)		5,100		60,011
LaSalle Hotel Properties REIT (United States)		960		25,920
Link REIT (The) (Hong Kong)		7,300		22,852
Macerich Co. REIT (United States)		804		39,822
Mirvac Group REIT (Australia)		23,300		30,005
Mitsubishi Estate Co., Ltd. (Japan)		5,600		94,725
Mitsui Fudosan Co., Ltd. (Japan)		3,100		51,170
Morguard Real Estate Investment Trust REIT (Canada)		2,058		30,950
Nationwide Health Properties, Inc. REIT (United States)		1,485		63,157
Nippon Building Fund, Inc. REIT (Japan)		5		48,689
Nomura Real Estate Office Fund, Inc. REIT (Japan)		5		33,842
Post Properties, Inc. REIT (United States)		990		38,857
ProLogis REIT (United States)		5,082		81,210
PSP Swiss Property AG (Switzerland)*		274		22,567
Public Storage REIT (United States)		1,145		126,992
Rayonier, Inc. REIT (United States)		280		17,447
Regency Centers Corp. REIT (United States)		1,635		71,090
RioCan Real Estate Investment Trust REIT (Canada)		1,378		36,188
Senior Housing Properties Trust REIT (United States)		1,500		34,560
Shenzhen Investment Ltd. (Hong Kong)		77,170		25,695
Shimao Property Holdings Ltd. (Hong Kong)		19,510		27,640
Simon Property Group, Inc. REIT (United States)		1,836		196,746
SL Green Realty Corp. REIT (United States)		540		40,608
Sumitomo Realty & Development Co., Ltd. (Japan)		2,000		40,010
Sun Hung Kai Properties Ltd. (Hong Kong)		13,380		211,918
Sunstone Hotel Investors, Inc. REIT (United States)*		2,300		23,437
Unibail-Rodamco SE REIT (France)		615		133,221
U-Store-It Trust REIT (United States)		1,540		16,201

111

Touchstone Global Real Estate Fund (Continued)

Common Stocks — 98.5% (Continued)	Shares		Market Value
Vastned Retail NV REIT (Netherlands)		252	$	18,446
Vornado Realty Trust REIT (United States)		1,100		96,250
Weingarten Realty Investors REIT (United States)		2,160		54,130
Westfield Group REIT (Australia)		13,320		128,682
Wharf Holdings Ltd. (Hong Kong)		7,199		49,653
Total Common Stocks			$	4,256,523
Investment Funds — 2.2%
Invesco Liquid Assets Portfolio **		63,525		63,525
Touchstone Institutional Money Market Fund^		30,076		30,076
Total Investment Funds			$	93,601
Total Investment Securities — 100.7% (Cost $3,992,186)			$	4,350,124
Liabilities in Excess of Other Assets — (0.7%)				(29,077	)
Net Assets — 100.0%			$	4,321,047

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $62,907.

*  Non-income producing security.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	4,256,523	$	—	$	—	$	4,256,523
Investment Funds		93,601		—		—		93,601
							$	4,350,124

See accompanying notes to financial statements.

112

Portfolio of Investments
Touchstone Healthcare and Biotechnology Fund – March 31, 2011 (Unaudited)

Common Stocks — 94.4%	Shares		Market Value
Health Care — 90.8%
Abbott Laboratories		10,630	$	521,401
Aetna, Inc.		12,440		465,629
Alexion Pharmaceuticals, Inc.*		9,720		959,170
Allergan, Inc.		12,120		860,762
Amarin Corp. PLC ADR*		17,540		128,042
AMERIGROUP Corp.*		14,820		952,185
AmerisourceBergen Corp.		23,700		937,572
Ardea Biosciences, Inc.* †		4,180		119,924
Baxter International, Inc.		5,000		268,850
Bruker Corp.*		21,070		439,310
Cepheid, Inc.*		11,390		319,148
Cerner Corp.*		1,820		202,384
Charles River Laboratories International, Inc.*		24,670		946,835
Chemed Corp.		8,780		584,836
Cooper Cos., Inc. (The)		7,220		501,429
DaVita, Inc.*		5,450		466,029
Exelixis, Inc.*		21,090		238,317
Express Scripts, Inc.*		18,210		1,012,658
Healthsouth Corp.*		13,790		344,474
Henry Schein, Inc.*		7,930		556,448
Intuitive Surgical, Inc.*		760		253,430
Laboratory Corp. of America Holdings*		8,960		825,485
McKesson Corp.		10,980		867,969
Mednax, Inc.*		4,170		277,764
Medtronic, Inc.		12,900		507,615
Onyx Pharmaceuticals, Inc.*		9,990		351,448
Perrigo Co.		4,040		321,261
Pfizer, Inc.		87,679		1,780,760
Pharmasset, Inc.*		3,460		272,337
Quality Systems, Inc. †		3,100		258,354
Regeneron Pharmaceuticals, Inc.*		4,980		223,801
Shire PLC ADR		11,780		1,026,038
Tenet Healthcare Corp.*		86,500		644,425
Thermo Fisher Scientific, Inc.*		3,170		176,093
United Therapeutics Corp.*		7,860		526,777
UnitedHealth Group, Inc.		21,450		969,540
Universal Health Services, Inc. - Class B		5,880		290,531
Varian Medical Systems, Inc.*		8,840		597,938
Volcano Corp.*		5,340		136,704
Watson Pharmaceuticals, Inc.*		21,290		1,192,453
WellPoint, Inc.		3,630		253,338
				22,579,464
Information Technology — 3.6%
Agilent Technologies, Inc.*		19,850		888,883
Total Common Stocks			$	23,468,347
Foreign Common Stock — 4.2% Health Care — 4.2%
Valeant Pharmaceuticals International, Inc. †		20,586	$	1,025,389

	Shares		Market Value
Investment Funds — 7.6%
Invesco Liquid Assets Portfolio **		1,421,000	$	1,421,000
Touchstone Institutional Money Market Fund^		479,526		479,526
Total Investment Funds			$	1,900,526
Total Investment Securities — 106.2% (Cost $20,172,228)			$	26,394,262
Liabilities in Excess of Other Assets — (6.2%)				(1,539,521	)
Net Assets — 100.0%			$	24,854,741

*  Non-income producing security.

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $1,382,777.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	24,493,736	$	—	$	—	$	24,493,736
Investment Funds		1,900,526		—		—		1,900,526
							$	26,394,262

See accompanying notes to financial statements.

113

Portfolio of Investments
Touchstone Intermediate Fixed Income Fund – March 31, 2011 (Unaudited)

Principal Amount			Market Value
		Corporate Bonds — 53.2% Financials — 23.5%
$	75,000	ACE Ina Holdings, Inc., 5.700%, 2/15/17	$	82,229
	510,000	Aflac, Inc., 8.500%, 5/15/19		616,524
	370,000	Allstate Life Global Funding Trusts, 5.375%, 4/30/13		399,181
	25,000	American Express Bank FSB, 5.500%, 4/16/13		26,813
	150,000	American Express Co., 4.875%, 7/15/13		159,906
	200,000	American Express Co., 7.000%, 3/19/18		233,745
	210,000	American International Group, Inc., 5.450%, 5/18/17		215,573
	125,000	Ameriprise Financial, Inc., 5.650%, 11/15/15		139,567
	30,000	Bank of America Corp., 5.750%, 8/15/16		31,667
	200,000	Bank of America Corp., 5.750%, 12/1/17		210,722
	200,000	Bank of America Corp. MTN, 5.650%, 5/1/18		209,016
	800,000	Bank of America NA, 5.300%, 3/15/17		821,333
	500,000	Barclays Bank PLC, Ser 1, 5.000%, 9/22/16		530,091
	40,000	Barclays Bank PLC, 6.750%, 5/22/19		45,176
	200,000	Barclays Bank PLC, 5.450%, 9/12/12		212,142
	325,000	BB&T Corp., 4.750%, 10/1/12		340,771
	915,000	BB&T Corp., 6.850%, 4/30/19		1,061,363
	30,000	Bear Stearns Cos. LLC, 6.400%, 10/2/17		33,701
	150,000	Bear Stearns Cos. LLC, 5.700%, 11/15/14		164,870
	45,000	Bear Stearns Cos. LLC (The), 5.300%, 10/30/15		48,499
	500,000	Berkshire Hathaway Finance Corp., 5.000%, 8/15/13		541,036
	375,000	Berkshire Hathaway, Inc., 3.200%, 2/11/15		386,011
	1,500,000	Boston Properties LP, 5.875%, 10/15/19		1,628,760
	345,000	Capital One Bank USA NA, 8.800%, 7/15/19		433,790
	350,000	Capital One Financial Corp., 5.700%, 9/15/11		357,754
	250,000	Citigroup, Inc., 6.125%, 11/21/17		272,414
	175,000	Citigroup, Inc., 5.850%, 8/2/16		189,622
	545,000	Citigroup, Inc., 5.000%, 9/15/14		569,091
	40,000	CME Group, Inc., 5.750%, 2/15/14		44,265
	200,000	Deutsche Bank AG, 6.000%, 9/1/17		221,725
	475,000	Fifth Third Bancorp, 6.250%, 5/1/13		515,240
	275,000	General Electric Capital Corp., 5.400%, 2/15/17		298,115
	400,000	General Electric Capital Corp. MTN, 6.000%, 6/15/12		423,574
	1,900,000	General Electric Capital Corp. MTN, 5.450%, 1/15/13		2,031,776
	175,000	General Electric Capital Corp. MTN, 5.625%, 5/1/18		189,196
	110,000	Genworth Financial, Inc., 5.750%, 6/15/14		113,327

Principal Amount			Market Value
$	500,000	Goldman Sachs Group, Inc., 5.625%, 1/15/17	$	526,905
	35,000	Goldman Sachs Group, Inc., 6.150%, 4/1/18		37,946
	315,000	Goldman Sachs Group, Inc., 3.700%, 8/1/15		317,324
	255,000	HCP, Inc., 5.650%, 12/15/13		276,196
	485,000	HSBC Finance Corp., 5.500%, 1/19/16		532,761
	500,000	Jefferies Group, Inc., 8.500%, 7/15/19		589,850
	385,000	JP Morgan Chase & Co., 5.125%, 9/15/14		413,228
	275,000	JP Morgan Chase & Co., 5.375%, 10/1/12		292,046
	100,000	KeyBank NA, 5.800%, 7/1/14		109,212
	530,000	Keycorp, 6.500%, 5/14/13		577,668
	470,000	Kimco Realty Corp., 5.700%, 5/1/17		510,295
	215,000	Merrill Lynch & Co., Inc., 6.400%, 8/28/17		234,367
	20,000	MetLife, Inc., 5.000%, 6/15/15		21,535
	170,000	MetLife, Inc., 6.125%, 12/1/11		176,256
	170,000	Morgan Stanley, 4.750%, 4/1/14		177,143
	125,000	Morgan Stanley, 5.500%, 1/26/20		125,544
	1,200,000	PNC Funding Corp., 5.625%, 2/1/17		1,301,639
	125,000	Principal Life Income Funding Trusts, 5.100%, 4/15/14		133,934
	535,000	ProLogis, 7.625%, 8/15/14		612,125
	30,000	Prudential Financial, Inc., 4.750%, 9/17/15		31,942
	125,000	Prudential Financial, Inc. MTN, 4.750%, 4/1/14		132,932
	25,000	Simon Property Group LP, 5.750%, 12/1/15		27,805
	300,000	SunTrust Bank, Inc., 6.375%, 4/1/11		300,000
	200,000	SunTrust Bank, Inc., 5.250%, 11/5/12		210,543
	150,000	Toyota Motor Credit Corp., 3.200%, 6/17/15		152,491
	100,000	Travelers Cos., Inc., 5.500%, 12/1/15		110,857
	1,000,000	Travelers Cos., Inc., 5.900%, 6/2/19		1,106,028
	185,000	Wachovia Bank NA, 5.000%, 8/15/15		197,292
	375,000	Wachovia Corp., 5.750%, 2/1/18		413,117
	170,000	Wells Fargo & Co., 4.950%, 10/16/13		181,572
				23,629,138
		Utilities — 8.1%
	20,000	Arizona Public Service Co., 8.750%, 3/1/19		25,214
	800,000	Boardwalk Pipelines LLC, 5.750%, 9/15/19		851,088
	150,000	Consolidated Edison Co. of NY, Ser 08-A, 5.850%, 4/1/18		169,661
	930,000	Consolidated Natural Gas Co., Ser A, 5.000%, 12/1/14		1,017,151
	100,000	Detroit Edison Co., Ser G, 5.600%, 6/15/18		108,907
	740,000	DTE Energy Co., 6.350%, 6/1/16		831,934
	100,000	Duke Energy Carolinas LLC, 5.300%, 10/1/15		111,455

114

Touchstone Intermediate Fixed Income Fund (Continued)

Principal Amount			Market Value
		Corporate Bonds — 53.2% (Continued)
$	860,000	Energy Transfer Partners LP, 5.950%, 2/1/15	$	942,858
	650,000	Enterprise Products Operating LLC, Ser O, 9.750%, 1/31/14		778,866
	25,000	Exelon Corp., 4.900%, 6/15/15		26,272
	520,000	Exelon Generation Co. LLC, 5.200%, 10/1/19		526,976
	115,000	Georgia Power Co., Ser Z, 5.250%, 12/15/15		127,678
	360,000	Metropolitan Edison Co., 7.700%, 1/15/19		425,678
	310,000	Midamerican Energy Holdings Co., Ser D, 5.000%, 2/15/14		332,943
	20,000	Midamerican Energy Holdings Co., 5.750%, 4/1/18		22,304
	110,000	National Rural Utilities Cooperative Finance Corp. MTN, 7.250%, 3/1/12		116,542
	550,000	NextEra Energy Capital Holdings, Inc., 2.550%, 11/15/13		559,694
	250,000	NextEra Energy Capital Holdings, Inc., 5.625%, 9/1/11		255,010
	125,000	NSTAR Electric Co., 4.875%, 4/15/14		134,510
	175,000	PacifiCorp, 6.900%, 11/15/11		181,820
	180,000	Public Service Co. of Colorado, Ser 10, 7.875%, 10/1/12		197,804
	140,000	Public Service Electric & Gas Co. MTN, 5.375%, 9/1/13		153,274
	130,000	Southern Cal Edison, Ser 05-A, 5.000%, 1/15/16		142,208
	100,000	TransCanada PipeLines Ltd., 4.875%, 1/15/15		108,956
				8,148,803
		Consumer Staples — 4.4%
	275,000	Archer-Daniels-Midland Co., 5.450%, 3/15/18		305,696
	200,000	Avon Products, Inc., 4.200%, 7/15/18		199,689
	550,000	Coca-Cola Enterprises, Inc., 1.125%, 11/12/13		542,227
	25,000	ConAgra Foods, Inc., 7.000%, 4/15/19		28,361
	25,000	CVS Caremark Corp., 6.600%, 3/15/19		28,677
	500,000	General Mills, Inc., 5.200%, 3/17/15		549,159
	35,000	General Mills, Inc., 5.650%, 2/15/19		38,795
	500,000	Kimberly-Clark Corp., 6.125%, 8/1/17		579,732
	25,000	Kraft Foods, Inc., 6.500%, 8/11/17		28,509
	329,000	Kraft Foods, Inc., 6.250%, 6/1/12		348,985
	30,000	Kroger Co., 6.400%, 8/15/17		34,517
	40,000	Procter & Gamble Co., 4.700%, 2/15/19		43,367
	921,000	Safeway, Inc., 6.250%, 3/15/14		1,018,329
	20,000	Safeway, Inc., 6.350%, 8/15/17		22,357
	500,000	Sara Lee Corp., 3.875%, 6/15/13		519,184
	120,000	Sysco Corp., 4.200%, 2/12/13		126,595
				4,414,179

Principal Amount			Market Value
		Consumer Discretionary — 3.1%
$	20,000	Comcast Corp., 5.875%, 2/15/18	$	22,048
	150,000	Costco Wholesale Corp., 5.500%, 3/15/17		170,858
	550,000	eBay, Inc., 0.875%, 10/15/13		543,988
	150,000	Emerson Electric Co., 5.000%, 12/15/14		166,036
	500,000	Johnson Controls, Inc., 5.500%, 1/15/16		553,352
	100,000	Lowe's Cos., Inc., 5.400%, 10/15/16		112,444
	175,000	McDonald's Corp., 6.000%, 4/15/11		175,283
	125,000	Omnicom Group, Inc., 5.900%, 4/15/16		139,777
	20,000	Staples, Inc., 7.750%, 4/1/11		20,000
	185,000	Target Corp., 5.875%, 7/15/16		212,528
	30,000	Time Warner Cable, Inc., 6.200%, 7/1/13		32,984
	20,000	Time Warner Cable, Inc., 8.250%, 4/1/19		24,365
	350,000	Wal-Mart Stores, Inc., 4.250%, 4/15/13		372,276
	25,000	Wal-Mart Stores, Inc., 5.800%, 2/15/18		28,470
	150,000	Wal-Mart Stores, Inc., 4.500%, 7/1/15		162,228
	180,000	Walt Disney Co., 5.500%, 3/15/19		203,793
	150,000	Walt Disney Co. MTN, 6.375%, 3/1/12		157,848
				3,098,278
		Industrials — 2.7%
	250,000	Canadian National Railway Co., 4.400%, 3/15/13		265,154
	195,000	Caterpillar Financial Services Corp., 7.150%, 2/15/19		238,685
	150,000	Caterpillar Financial Services Corp. MTN, 4.600%, 1/15/14		161,444
	130,000	Dover Corp., 4.875%, 10/15/15		142,788
	150,000	General Dynamics Corp., 4.250%, 5/15/13		159,638
	275,000	General Electric Co., 5.250%, 12/6/17		299,475
	150,000	John Deere Capital Corp., 7.000%, 3/15/12		159,189
	140,000	Parker Hannifin Corp., 5.500%, 5/15/18		156,797
	500,000	Southwest Airlines Co., 6.500%, 3/1/12		523,074
	250,000	Stanford University, 4.750%, 5/1/19		268,890
	250,000	United Parcel Service, Inc., 5.500%, 1/15/18		279,593
	100,000	United Technologies Corp., 4.875%, 5/1/15		110,117
				2,764,844
		Telecommunication Services — 2.7%
	110,000	AT&T, Inc., 5.625%, 6/15/16		123,052
	145,000	AT&T, Inc., 5.500%, 2/1/18		158,281
	75,000	AT&T, Inc., 5.875%, 8/15/12		79,924
	140,000	BellSouth Corp., 5.200%, 9/15/14		153,072
	225,000	New Cingular Wireless Services, Inc., 8.125%, 5/1/12		242,166
	550,000	Telefonica Emisiones SAU, 2.582%, 4/26/13		555,254
	305,000	Verizon Communications, Inc., 5.500%, 2/15/18		332,504

115

Touchstone Intermediate Fixed Income Fund (Continued)

Principal Amount			Market Value
		Corporate Bonds — 53.2% (Continued)
$	175,000	Verizon Global Funding Corp., 4.375%, 6/1/13	$	185,995
	690,000	Vodafone Group PLC, 3.375%, 11/24/15		701,673
	100,000	Vodafone Group PLC, 5.625%, 2/27/17		110,492
	100,000	Vodafone Group PLC, 5.500%, 6/15/11		100,963
				2,743,376
		Materials — 2.3%
	350,000	Alcoa, Inc., 6.000%, 7/15/13		381,938
	740,000	Dow Chemical Co., 5.900%, 2/15/15		820,186
	400,000	Dow Chemical Co., 4.850%, 8/15/12		419,028
	450,000	EI du Pont de Nemours & Co., 3.625%, 1/15/21		427,321
	200,000	Praxair, Inc., 5.375%, 11/1/16		223,166
				2,271,639
		Information Technology — 2.2%
	40,000	Cisco Systems, Inc., 4.450%, 1/15/20		41,021
	150,000	Cisco Systems, Inc., 5.500%, 2/22/16		168,423
	40,000	Dell, Inc., 5.875%, 6/15/19		43,875
	200,000	IBM Corp., 5.700%, 9/14/17		226,369
	235,000	Oracle Corp., 4.950%, 4/15/13		253,158
	160,000	Oracle Corp., 3.750%, 7/8/14		169,816
	150,000	Pitney Bowes, Inc., 3.875%, 6/15/13		155,698
	1,000,000	Xerox Corp., 6.400%, 3/15/16		1,133,459
				2,191,819
		Health Care — 2.1%
	150,000	Abbott Laboratories, 5.600%, 11/30/17		169,645
	205,000	Abbott Laboratories, 5.875%, 5/15/16		234,621
	100,000	Aetna, Inc., 6.000%, 6/15/16		112,621
	175,000	AstraZeneca PLC, 5.900%, 9/15/17		199,788
	120,000	Baxter International, Inc., 5.900%, 9/1/16		138,243
	150,000	Genentech, Inc., 4.750%, 7/15/15		163,161
	230,000	Johnson & Johnson, 5.150%, 8/15/12		244,127
	100,000	Medtronic, Inc., Ser B, 4.750%, 9/15/15		109,452
	300,000	Pfizer, Inc., 6.200%, 3/15/19		345,706
	115,000	UnitedHealth Group, Inc., 5.000%, 8/15/14		124,905
	125,000	Wyeth, 5.450%, 4/1/17		139,703
	120,000	Wyeth, 5.500%, 2/1/14		132,332
				2,114,304
		Energy — 2.1%
	750,000	Anadarko Petroleum Corp., 6.375%, 9/15/17		825,521
	225,000	Apache Corp., 6.250%, 4/15/12		236,893
	500,000	ConocoPhillips, 4.400%, 5/15/13		532,278
	150,000	SeaRiver Maritime, Inc., 2.580%, 9/1/12 (a)		145,185

Principal Amount			Market Value
$	320,000	Shell International Finance BV, 4.000%, 3/21/14	$	342,017
	25,000	Valero Energy Corp., 9.375%, 3/15/19		31,957
				2,113,851
		Total Corporate Bonds	$	53,490,231
		U.S. Treasury Obligations — 25.4%
	500,000	U.S. Treasury Bond, 11.250%, 2/15/15		679,844
	800,000	U.S. Treasury Bond, 8.750%, 5/15/17		1,080,813
	1,000,000	U.S. Treasury Note, 1.000%, 9/30/11		1,004,023
	250,000	U.S. Treasury Note, 1.375%, 4/15/12		252,676
	2,000,000	U.S. Treasury Note, 1.500%, 7/15/12		2,027,344
	5,600,000	U.S. Treasury Note, 0.375%, 8/31/12		5,590,592
	250,000	U.S. Treasury Note, 4.125%, 8/31/12		262,705
	350,000	U.S. Treasury Note, 1.375%, 1/15/13		354,142
	500,000	U.S. Treasury Note, 2.750%, 10/31/13		521,679
	1,500,000	U.S. Treasury Note, 1.875%, 2/28/14		1,527,774
	170,000	U.S. Treasury Note, 1.750%, 3/31/14		172,444
	3,000,000	U.S. Treasury Note, 4.250%, 11/15/14		3,286,173
	9,050,000	U.S. Treasury Note, 1.250%, 10/31/15		8,732,544
		Total U.S. Treasury Obligations	$	25,492,753
		U.S. Government Mortgage-Backed Obligations — 10.8%
	3,361,200	FHLMC, Pool #C03490, 4.500%, 8/1/40		3,419,588
	3,089,071	FHLMC, Pool #G06087, 5.000%, 9/1/40		3,229,130
	4,129,445	FNMA, Pool #AE5440, 4.500%, 10/1/40		4,212,150
		Total U.S. Government Mortgage-Backed Obligations	$	10,860,868
		U.S. Government Agency Obligations — 5.3%
	2,500,000	FFCB, 1.750%, 2/21/13		2,539,002
	340,000	FFCB, 5.125%, 8/25/16		386,441
	465,000	FHLB, Ser VB15, 5.000%, 12/21/15		523,663
	275,000	FHLB, Ser 656, 5.375%, 5/18/16		312,991
	400,000	FHLMC, 4.500%, 1/15/14		434,763
	400,000	FHLMC, 5.125%, 10/18/16		449,364
	250,000	FNMA, 2.500%, 5/15/14		258,064
	150,000	FNMA, 4.125%, 4/15/14		161,793
	125,000	FNMA, 4.625%, 10/15/13		135,725
	150,000	Tennessee Valley Auth., Ser C, 4.750%, 8/1/13		162,463
		Total U.S. Government Agency Obligations	$	5,364,269
		Sovereign Government Obligations — 2.3%
	100,000	Asian Development Bank, 4.500%, 9/4/12		105,344
	250,000	Export-Import Bank of Korea, 5.500%, 10/17/12		263,127
	180,000	Hydro Quebec, Ser IU, 7.500%, 4/1/16		219,876
	125,000	Korea Development Bank, 5.500%, 11/13/12		131,866

116

Touchstone Intermediate Fixed Income Fund (Continued)

Principal Amount			Market Value
		Sovereign Government Obligations — 2.3% (Continued)
$	110,000	Korea Electric Power Corp., 7.750%, 4/1/13	$	121,578
	200,000	Malaysia, 7.500%, 7/15/11		203,481
	250,000	Province of Ontario Canada, 4.750%, 1/19/16		274,507
	200,000	Province of Quebec Canada, 4.600%, 5/26/15		219,221
	500,000	Republic of Chile, 5.500%, 1/15/13		534,300
	225,000	Republic of Korea, 4.875%, 9/22/14		240,270
		Total Sovereign Government Obligations	$	2,313,570
		Commercial Mortgage-Backed Security — 0.5%
	450,000	Citigroup Commercial Mortgage Trust, Ser 2006-C5, Class A4, 5.431%, 10/15/49		480,682
Shares			Market Value
		Investment Fund — 1.9%
	1,956,878	Touchstone Institutional Money Market Fund^	$	1,956,878
		Total Investment Securities — 99.4% (Cost $97,223,623)	$	99,959,251
		Other Assets in Excess of Liabilities — 0.6%		578,122
		Net Assets — 100.0%	$	100,537,373

^(a)  Zero Coupon security – The rate reported was the effective yield as of March 31, 2011.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

FFCB – Federal Farm Credit Bank

FNMA – Federal National Mortgage Association

FHLB – Federal Home Loan Bank

FHLMC – Federal Home Loan Mortgage Corp.

MTN – Medium Term Note

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
Corporate Bonds	$	—	$	53,490,231	$	—	$	53,490,231
U.S. Treasury Obligations		—		25,492,753		—		25,492,753
U.S. Government Mortgage-Backed Obligations		—		10,860,868		—		10,860,868
U.S. Government Agency Obligations		—		5,364,269		—		5,364,269
Sovereign Government Obligations		—		2,313,570		—		2,313,570
Investment Fund		1,956,878		—		—		1,956,878
Commercial Mortgage-Backed Security		—		480,682		—		480,682
							$	99,959,251

See accompanying notes to financial statements.

117

Portfolio of Investments
Touchstone International Fixed Income Fund – March 31, 2011 (Unaudited)

Principal Amount			Market Value
		Sovereign Government Obligations — 60.6%
$	30,000,000	Asian Development Bank, 2.350%, 6/21/27	$	387,435
	250,000	Belgium Government Bond, Ser 56, 3.500%, 3/28/15		357,634
	400,000	Brazilian Government International Bond, 12.500%, 1/5/22		284,200
	130,000	Bundesrepublik Deutschland, Ser 05, 4.000%, 1/4/37		187,806
	150,000	Bundesrepublik Deutschland, Ser 03, 4.750%, 7/4/34		239,616
	270,000	Canadian Government Bond, 5.000%, 6/1/14		301,988
	2,600,000	Czech Republic Government Bond, Ser 58, 5.700%, 5/25/24		172,282
	10,000,000	Development Bank of Japan, 1.400%, 6/20/12		121,752
	16,000,000	Development Bank of Japan, 1.700%, 9/20/22		196,697
	200,000	European Financial Stability Facility, 2.750%, 7/18/16		277,945
	215,000	European Investment Bank, 6.000%, 12/7/28		402,730
	250,000	France Government Bond OAT, 5.000%, 10/25/16		389,057
	100,000	Hellenic Republic Government Bond, Ser 5Y, 4.000%, 8/20/13		110,003
	1,500,000,000	Indonesia Treasury Bond, Ser FR49, 9.000%, 9/15/13		180,292
	250,000	Ireland Government Bond, 4.600%, 4/18/16		271,918
	150,000	Ireland Government Bond, 5.000%, 10/18/20		146,555
	170,000	Italy Buoni Poliennali Del Tesoro, 3.000%, 4/15/15		234,547
	170,000	Italy Buoni Poliennali Del Tesoro, 4.500%, 2/1/20		239,526
	500,000	Malaysia Government Bond, Ser 1/01, 3.833%, 9/28/11		166,207
	200,000	New Zealand Government Bond, Ser 1217, 6.000%, 12/15/17		159,649
	675,299	South Africa Government Bond, Ser R211, 2.500%, 1/31/17		102,109
	1,500,000	South Africa Government Bond, Ser R207, 7.250%, 1/15/20		202,507
	3,000,000	Sweden Government Bond, Ser 1049, 4.500%, 8/12/15		503,953
	150,000	United Kingdom Gilt, 5.000%, 9/7/14		264,034
		Total Sovereign Government Obligations	$	5,900,442

Principal Amount			Market Value
		Corporate Bonds — 26.6% Financials — 20.0%
$	50,000	Allied Irish Banks PLC, 12.500%, 6/25/19	$	16,298
	100,000	HGI Group Ltd., 6.500%, 5/2/12		161,212
	100,000	International Power Finance Jersey II Ltd., 3.250%, 7/20/13		151,853
	30,000,000	Japan Finance Organization for Municipalities, Ser INTL, 1.550%, 2/21/12		364,834
	150,000	Kreditanstalt fuer Wiederaufbau, 3.375%, 1/18/21		205,950
	100,000	Kreditanstalt fuer Wiederaufbau, Ser DTE, 3.250%, 6/27/13		147,219
	200,000	LCR Finance PLC, Reg S, 4.500%, 12/7/28		321,138
	1,400,000	Realkredit Danmark A/S, Ser 10S, 2.000%, 1/1/12		266,640
	1,000,000	Stadshypotek AB, Ser 1576, 6.000%, 3/18/15		169,052
	100,000	Swedbank Hypotek AB, 2.500%, 1/21/13		141,587
				1,945,783
		Sovereign Bond — 4.8%
	38,000,000	Eksportfinans ASA, 1.600%, 3/20/14		470,949
		Energy — 1.3%
	100,000	Seadrill Ltd., 3.375%, 10/27/17		121,750
		Utilities — 0.5%
	50,000	Tokyo Electric Power Co., Inc./The, 2.750%, 2/14/12		52,255
		Total Corporate Bonds	$	2,590,737
		Foreign Bonds — 6.8%
	2,000	Cap Gemini SA, 1.000%, 1/1/12		130,099
	1,100,000	China Petroleum & Chemical Corp., 0.000%, 4/24/14 (a)		163,334
	30,000,000	Japan Expressway Holding and Debt Repayment Agency, 2.850%, 3/18/39		373,673
		Total Foreign Bonds	$	667,106
Shares			Market Value
		Investment Fund — 2.7%
	263,310	Touchstone Institutional Money Market Fund^	$	263,310
		Total Investment Securities — 96.7% (Cost $9,281,276)	$	9,421,595
		Other Assets in Excess of Liabilities — 3.3%		322,421
		Net Assets — 100.0%	$	9,744,016

118

Touchstone International Fixed Income Fund (Continued)

^(a)  Zero Coupon security – The rate reported was the effective yield as of March 31, 2011.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

PLC – Public Limited Company

Reg S – Security sold outside United States without registration under the Securities Act of 1933.

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
Sovereign Government Obligations	$	—	$	5,900,442	$	—	$	5,900,442
Corporate Bonds		—		2,590,737		—		2,590,737
Foreign Bonds		130,099		537,007		—		667,106
Investment Fund		263,310		—		—		263,310
							$	9,421,595
	Level 1		Level 2		Level 3		Total

Other Financial Instruments*

Forward
Currency
Contracts $ — $ (2,634 ) $ — $ (2,634 )

*  Other financial instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized depreciation.

See accompanying notes to financial statements.

119

Touchstone International Fixed Income Fund (Continued)

Forward Foreign Currency Exchange Contracts

	Contract To
Counterparty	Value Date	Receive		Deliver		Unrealized Appreciation/ (Depreciation)
Brown Brothers Harriman	04/14/2011	TRY	300,000	USD	190,235		—
Brown Brothers Harriman	04/14/2011	TRY	300,000	USD	189,633		4,331
Brown Brothers Harriman	04/27/2011	AUD	260,000	GBP	160,075		11,442
Brown Brothers Harriman	04/27/2011	AUD	400,000	JPY	30,738,400		42,986
Brown Brothers Harriman	04/27/2011	CHF	170,000	JPY	15,233,615		1,936
Brown Brothers Harriman	04/27/2011	EUR	540,000	JPY	62,004,150		19,481
Brown Brothers Harriman	04/27/2011	IDR	1,350,000,000	USD	154,339		130
Brown Brothers Harriman	04/27/2011	JPY	15,409,200	AUD	200,000		(21,012	)
Brown Brothers Harriman	04/27/2011	JPY	16,175,500	AUD	200,000		(11,798	)
Brown Brothers Harriman	04/27/2011	JPY	21,898,080	AUD	270,000		(15,193	)
Brown Brothers Harriman	04/27/2011	JPY	12,499,830	NZD	210,000		(9,711	)
Brown Brothers Harriman	04/27/2011	JPY	33,000,000	SEK	2,550,528		(6,855	)
Brown Brothers Harriman	04/27/2011	JPY	77,669,500	USD	959,114		(25,241	)
Brown Brothers Harriman	04/27/2011	KRW	167,000,000	USD	148,510		3,523
Brown Brothers Harriman	04/27/2011	MXN	200,000	USD	16,598		180
Brown Brothers Harriman	04/27/2011	MYR	476,000	USD	156,355		567
Brown Brothers Harriman	04/27/2011	PLN	810,780	EUR	200,000		1,632
Brown Brothers Harriman	04/27/2011	RON	240,000	USD	81,200		1,106
Brown Brothers Harriman	04/27/2011	USD	192,816	CAD	189,000		(2,038	)
Brown Brothers Harriman	04/27/2011	USD	51,888	CHF	47,000		713
Brown Brothers Harriman	04/27/2011	USD	496,398	EUR	350,000		566
Brown Brothers Harriman	04/27/2011	USD	519,491	GBP	320,000		6,270
Brown Brothers Harriman	04/27/2011	USD	81,864	RON	240,000		(442	)
Brown Brothers Harriman	04/28/2011	HKD	1,594,000	USD	204,562		402
Brown Brothers Harriman	04/28/2011	USD	211,807	ZAR	1,480,000		(6,222	)
Brown Brothers Harriman	07/14/2011	HKD	1,500,000	EUR	136,048		613
						$	(2,634	)

120

Portfolio of Investments
Touchstone Large Cap Relative Value Fund – March 31, 2011 (Unaudited)

Common Stocks — 94.9%	Shares		Market Value
Energy — 16.3%
Apache Corp.		900	$	117,828
Chesapeake Energy Corp.		2,200		73,744
ConocoPhillips		1,500		119,790
Exxon Mobil Corp.		2,164		182,057
Occidental Petroleum Corp.		2,200		229,878
Schlumberger Ltd.		1,500		139,890
Transocean Ltd.*		1,200		93,540
				956,727
Financials — 16.1%
Aflac, Inc.		1,900		100,282
Bank of America Corp.		6,600		87,978
Chubb Corp.		2,000		122,620
Goldman Sachs Group, Inc. (The)		600		95,082
JPMorgan Chase & Co.		2,400		110,640
Morgan Stanley		2,500		68,300
Northern Trust Corp.		1,400		71,050
Travelers Cos., Inc. (The)		2,200		130,856
Wells Fargo & Co.		4,900		155,330
				942,138
Consumer Discretionary — 14.8%
Carnival Corp.		1,900		72,884
Comcast Corp. - Class A		4,000		98,880
Darden Restaurants, Inc.		2,900		142,477
Johnson Controls, Inc.		3,100		128,867
Target Corp.		1,400		70,014
TJX Cos., Inc.		2,600		129,298
Walt Disney Co. (The)		2,800		120,652
Yum! Brands, Inc.		2,000		102,760
				865,832
Information Technology — 13.2%
Automatic Data Processing, Inc.		2,000		102,620
Corning, Inc.		6,300		129,969
Flextronics International Ltd.*		18,600		138,942
Intel Corp.		7,100		143,207
International Business Machines Corp.		1,100		179,377
Xerox Corp.		7,600		80,940
				775,055
Industrials — 13.1%
Boeing Co. (The)		1,700		125,681
Cummins, Inc.		2,200		241,164
General Dynamics Corp.		1,900		145,464
Norfolk Southern Corp.		1,800		124,686
Union Pacific Corp.		1,300		127,829
				764,824
Health Care — 9.8%
Beckman Coulter, Inc.		1,600		132,912
CR Bard, Inc.		600		59,586
Express Scripts, Inc.*		3,100		172,391
UnitedHealth Group, Inc.		2,200		99,440
WellPoint, Inc.		1,600		111,664
				575,993

	Shares		Market Value
Utilities — 4.1%
Duke Energy Corp.		3,100	$	56,265
Exelon Corp.		2,000		82,480
Southern Co.		2,600		99,086
				237,831
Materials — 4.0%
Freeport-McMoRan Copper & Gold, Inc.		4,200		233,310
Telecommunication Services — 2.1%
American Tower Corp. - Class A*		2,400		124,368
Consumer Staples — 1.4%
Kimberly-Clark Corp.		1,300		84,851
Total Common Stocks			$	5,560,929
Investment Fund — 5.2%
Touchstone Institutional Money Market Fund^		303,020		303,020
Total Investment Securities — 100.1% (Cost $4,773,681)			$	5,863,949
Liabilities in Excess of Other Assets — (0.1%)				(5,851	)
Net Assets — 100.0%			$	5,858,098

*  Non-income producing security.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	5,560,929	$	—	$	—	$	5,560,929
Investment Fund		303,020		—		—		303,020
							$	5,863,949

See accompanying notes to financial statements.

121

Portfolio of Investments
Touchstone Market Neutral Equity Fund – March 31, 2011 (Unaudited)

Common Stocks — 93.9%	Shares		Market Value
Information Technology — 22.4%
ACI Worldwide, Inc.*		3,800	$	124,640
Adobe Systems, Inc.*		4,900		162,484
Amdocs Ltd.*		5,200		150,020
Applied Materials, Inc.		6,600		103,092
ATMI, Inc.*		5,700		107,616
Blackbaud, Inc.		4,800		130,752
CA, Inc.		7,100		171,678
CACI International, Inc. - Class A*		3,200		196,224
CGI Group, Inc. - Class A*		7,900		165,347
Check Point Software Technologies Ltd.*		2,100		107,205
Cymer, Inc.*		2,700		152,766
DealerTrack Holdings, Inc.*		6,200		142,352
DST Systems, Inc.		4,400		232,408
Electronics for Imaging, Inc.*		6,700		98,557
Epicor Software Corp.*		11,500		127,305
EPIQ Systems, Inc.		7,800		112,008
Factset Research Systems, Inc.		2,200		230,406
Fair Isaac Corp.		8,000		252,880
Fidelity National Information Services, Inc.		3,300		107,877
Fiserv, Inc.*		3,600		225,792
Global Payments, Inc.		4,700		229,924
IAC/InterActiveCorp*		8,800		271,832
Integrated Device Technology, Inc.*		17,000		125,290
International Business Machines Corp.		700		114,149
Lam Research Corp.*		2,500		141,650
Lawson Software, Inc.*		11,500		139,150
LSI Corp.*		22,200		150,960
Manhattan Associates, Inc.*		3,600		117,792
Microsoft Corp.		7,200		182,592
MicroStrategy, Inc. - Class A*		1,000		134,480
MTS Systems Corp.		2,200		100,210
Net 1 UEPS Technologies, Inc.*		15,000		129,000
Parametric Technology Corp.*		4,900		110,201
Plantronics, Inc.		2,700		98,874
Pulse Electronics Corp.		14,100		85,305
QLogic Corp.*		11,100		205,905
Quest Software, Inc.*		4,600		116,794
Research In Motion Ltd.*		2,200		124,454
Rofin-Sinar Technologies, Inc.*		3,500		138,250
Silicon Graphics International Corp.*		6,600		141,240
SRA International, Inc. - Class A*		6,900		195,684
Symantec Corp.*		12,500		231,750
TeleTech Holdings, Inc.*		4,900		94,962
Teradata Corp.*		3,200		162,240
Texas Instruments, Inc.		7,900		273,024
United Online, Inc.		15,900		100,250
ValueClick, Inc.*		14,800		214,008
Varian Semiconductor Equipment Associates, Inc.*		3,600		175,212
Websense, Inc.*		4,100		94,177
Zebra Technologies Corp. - Class A*		4,000		156,960
				7,657,728

	Shares		Market Value
Financials — 20.2%
Axis Capital Holdings Ltd.		5,900	$	206,028
BancFirst Corp.		2,200		93,896
Banco Latinoamericano de Comercio Exterior SA - Class E		6,800		118,728
Bank of the Ozarks, Inc.		4,100		179,211
Chubb Corp.		2,200		134,882
City National Corp.		1,900		108,395
CME Group, Inc.		300		90,465
Cohen & Steers, Inc.		6,700		198,856
Commerce Bancshares, Inc.		2,600		105,144
Community Bank System, Inc.		4,600		111,642
Compass Diversified Holdings		6,600		97,284
Dime Community Bancshares		4,900		72,324
Erie Indemnity Co. - Class A		3,600		255,996
Everest Re Group Ltd.		1,100		96,998
Federal Realty Investment Trust REIT		3,000		244,680
Fifth Third Bancorp		7,200		99,936
First Citizens BancShares, Inc. - Class A		500		100,290
Flushing Financial Corp.		8,000		119,200
Franklin Resources, Inc.		2,100		262,668
Hudson City Bancorp, Inc.		15,300		148,104
Huntington Bancshares, Inc.		17,600		116,864
Infinity Property & Casualty Corp.		2,200		130,878
International Bancshares Corp.		8,700		159,558
Jones Lang LaSalle, Inc.		2,500		249,350
KeyCorp		18,200		161,616
Marsh & McLennan Cos., Inc.		4,000		119,240
Meadowbrook Insurance Group, Inc.		9,800		101,430
Moody's Corp.		4,400		149,204
NASDAQ OMX Group, Inc. (The)*		3,600		93,024
National Health Investors, Inc. REIT		5,100		244,392
National Penn Bancshares, Inc.		14,900		115,326
NBT Bancorp, Inc.		3,900		88,881
NYSE Euronext		3,300		116,061
Old National Bancorp		11,100		118,992
PS Business Parks, Inc. REIT		4,300		249,142
Public Storage REIT		1,900		210,729
RenaissanceRe Holdings Ltd.		1,900		131,081
Retail Opportunity Investments Corp. REIT		13,300		145,502
Safety Insurance Group, Inc.		2,500		115,275
T Rowe Price Group, Inc.		4,100		272,322
Taubman Centers, Inc. REIT		5,400		289,332
UMB Financial Corp.		3,600		134,478
Waddell & Reed Financial, Inc. - Class A		3,000		121,830
Webster Financial Corp.		5,300		113,579
Wells Fargo & Co.		4,000		126,800
WesBanco, Inc.		9,800		202,958
				6,922,571
Consumer Discretionary — 11.6%
Aaron's, Inc.		2,600		65,936
Aeropostale, Inc.*		5,200		126,464

122

Touchstone Market Neutral Equity Fund (Continued)

Common Stocks — 93.9% (Continued)	Shares		Market Value
AutoZone, Inc.*		700	$	191,492
Biglari Holdings, Inc.*		300		127,065
Cato Corp. (The) - Class A		6,600		161,700
Cherokee, Inc.		5,200		89,752
Coach, Inc.		5,400		281,016
DIRECTV Group, Inc. - Class A*		7,600		355,680
Gap, Inc. (The)		4,800		108,768
ITT Educational Services, Inc.*		1,100		79,365
Lincoln Educational Services Corp.		6,600		104,874
Ltd. Brands, Inc.		6,000		197,280
McGraw-Hill Cos., Inc. (The)		2,900		114,260
Movado Group, Inc.*		7,100		104,228
Papa John's International, Inc.*		6,300		199,521
Penske Auto Group, Inc.*		5,000		100,100
Polo Ralph Lauren Corp.		800		98,920
Rent-A-Center, Inc. - Class A		4,400		153,604
Sonic Automotive, Inc. - Class A		7,100		99,471
Tim Hortons, Inc.		5,500		249,205
Timberland Co. (The) - Class A*		2,600		107,354
Time Warner, Inc.		3,200		114,240
TJX Cos., Inc.		2,500		124,325
Vail Resorts, Inc.*		2,100		102,396
Warnaco Group, Inc. (The)*		2,900		165,851
Weight Watchers International, Inc.		3,300		231,330
Wolverine World Wide, Inc.		2,800		104,384
				3,958,581
Health Care — 11.0%
Aetna, Inc.		6,400		239,552
AMAG Pharmaceuticals, Inc.*		6,100		101,870
AmerisourceBergen Corp.		3,000		118,680
Amsurg Corp.*		5,700		145,008
Angiodynamics, Inc.*		9,300		140,616
Biogen Idec, Inc.*		1,600		117,424
CIGNA Corp.		2,700		119,556
Forest Laboratories, Inc.*		5,300		171,190
Gilead Sciences, Inc.*		3,000		127,320
Greatbatch, Inc.*		4,200		111,132
Health Net, Inc.*		4,900		160,230
ICU Medical, Inc.*		4,400		192,632
Invacare Corp.		3,600		112,032
Magellan Health Services, Inc.*		2,300		112,884
Medco Health Solutions, Inc.*		2,200		123,552
Medicines Co. (The)*		7,800		127,062
Myriad Genetics, Inc.*		5,400		108,810
Natus Medical, Inc.*		6,400		107,520
Pfizer, Inc.		6,500		132,015
Quest Diagnostics, Inc.		2,100		121,212
Quidel Corp.*		5,700		68,172
SonoSite, Inc.*		4,700		156,604
Spectrum Pharmaceuticals, Inc.*		23,100		205,359
Techne Corp.		1,900		136,040
UnitedHealth Group, Inc.		3,300		149,160
Vanda Pharmaceuticals, Inc.*		14,200		103,518

	Shares		Market Value
Waters Corp.*		1,600	$	139,040
WellPoint, Inc.		1,800		125,622
				3,773,812
Industrials — 10.8%
AAON, Inc.		3,300		108,570
Applied Industrial Technologies, Inc.		3,200		106,432
Chicago Bridge & Iron Co. NV		4,300		174,838
Comfort Systems USA, Inc.		7,700		108,339
Dover Corp.		2,200		144,628
Dun & Bradstreet Corp.		1,300		104,312
Encore Wire Corp.		5,200		126,568
Equifax, Inc.		3,900		151,515
Gardner Denver, Inc.		2,500		195,075
Graco, Inc.		3,000		136,470
Heartland Express, Inc.		6,600		115,896
Huntington Ingalls Industries, Inc.*		500		20,750
JB Hunt Transport Services, Inc.		4,100		186,222
KBR, Inc.		4,400		166,188
Knoll, Inc.		7,700		161,392
L-3 Communications Holdings, Inc.		1,600		125,296
Lockheed Martin Corp.		2,200		176,880
Northrop Grumman Corp.		3,000		188,130
Raven Industries, Inc.		2,700		165,834
Raytheon Co.		2,700		137,349
Rollins, Inc.		6,600		133,980
Simpson Manufacturing Co., Inc.		3,800		111,948
Teledyne Technologies, Inc.*		2,100		108,591
Toro Co.		4,300		284,746
W.W. Grainger, Inc.		900		123,912
WABCO Holdings, Inc.*		2,100		129,444
				3,693,305
Energy — 7.9%
Cal Dive International, Inc.*		14,800		103,304
Chevron Corp.		1,900		204,117
ConocoPhillips		3,000		239,580
CVR Energy, Inc.*		6,800		157,488
Dawson Geophysical Co.*		1,400		61,432
Gulf Island Fabrication, Inc.		1,900		61,123
Hercules Offshore, Inc.*		15,600		103,116
Hess Corp.		1,900		161,899
Marathon Oil Corp.		6,000		319,860
Murphy Oil Corp.		2,500		183,550
Oil States International, Inc.*		2,200		167,508
Patterson-UTI Energy, Inc.		11,100		326,229
Pioneer Drilling Co.*		15,000		207,000
Unit Corp.*		2,500		154,875
Valero Energy Corp.		8,100		241,542
				2,692,623
Utilities — 5.5%
Alliant Energy Corp.		7,000		272,510
China Natural Gas, Inc.*		25,100		140,058
DPL, Inc.		9,400		257,654

123

Touchstone Market Neutral Equity Fund (Continued)

Common Stocks — 93.9% (Continued)	Shares			Market Value
Edison International		6,300		$	230,517
El Paso Electric Co.*		9,500			288,800
Energen Corp.		3,900			246,168
Entergy Corp.		1,400			94,094
Exelon Corp.		3,000			123,720
Public Service Enterprise Group, Inc.		7,100			223,721
					1,877,242
Consumer Staples — 2.2%
Boston Beer Co., Inc. - Class A*		1,100			101,882
Dr Pepper Snapple Group, Inc.		2,900			107,764
Elizabeth Arden, Inc.*		5,800			174,058
Herbalife Ltd.		2,200			178,992
J.M. Smucker Co. (The)		1,700			121,363
Origin Agritech Ltd.*		11,500			88,550
					772,609
Materials — 2.0%
AptarGroup, Inc.		2,200			110,286
Cabot Corp.		3,800			175,902
HB Fuller Co.		4,700			100,956
Minerals Technologies, Inc.		2,400			164,448
Schnitzer Steel Industries, Inc. - Class A		2,200			143,022
					694,614
Telecommunication Services — 0.3%
NTELOS Holdings Corp.		5,500			101,255
Total Common Stocks				$	32,144,340
Investment Fund — 0.4%
Touchstone Institutional Money Market Fund^		126,246			126,246
Total Long Positions (Cost $26,979,551)				$	32,270,586
Securities Sold Short — (94.3%)
Common Stocks — (94.3%)
Telecommunication Services — (0.5%)
Clearwire Corp. - Class A*		(14,800	)		(82,732	)
Rogers Communications, Inc. - Class B		(2,900	)		(105,560	)
					(188,292	)
Consumer Staples — (2.2%)
Avon Products, Inc.		(2,500	)		(67,600	)
Bunge Ltd.		(1,400	)		(101,262	)
Green Mountain Coffee Roasters, Inc.*		(1,600	)		(103,376	)
Sanderson Farms, Inc.		(2,900	)		(133,168	)
Tootsie Roll Industries, Inc.		(4,120	)		(116,843	)
United Natural Foods, Inc.*		(3,100	)		(138,942	)
Winn-Dixie Stores, Inc.*		(14,600	)		(104,244	)
					(765,435	)
Materials — (3.1%)
Alcoa, Inc.		(7,700	)		(135,905	)
Balchem Corp.		(6,600	)		(247,632	)
International Flavors & Fragrances, Inc.		(2,300	)		(143,290	)
Kraton Performance Polymers, Inc.*		(3,700	)		(141,525	)

	Shares			Market Value
Texas Industries, Inc.		(2,700	)	$	(122,121	)
Vulcan Materials Co.		(5,700	)		(259,920	)
					(1,050,393	)
Utilities — (5.8%)
Black Hills Corp.		(5,500	)		(183,920	)
Consolidated Edison, Inc.		(5,800	)		(294,176	)
Empire District Electric Co. (The)		(10,700	)		(233,153	)
Enbridge, Inc.		(1,900	)		(116,755	)
Integrys Energy Group, Inc.		(1,900	)		(95,969	)
National Fuel Gas Co.		(1,800	)		(133,200	)
Northwest Natural Gas Co.		(2,500	)		(115,325	)
Pepco Holdings, Inc.		(11,800	)		(220,070	)
Southern Co.		(5,600	)		(213,416	)
UGI Corp.		(6,600	)		(217,140	)
WGL Holdings, Inc.		(3,800	)		(148,200	)
					(1,971,324	)
Energy — (7.6%)
Carrizo Oil & Gas, Inc.*		(3,200	)		(118,176	)
Cimarex Energy Co.		(1,600	)		(184,384	)
Concho Resources, Inc.*		(1,000	)		(107,300	)
El Paso Corp.		(6,000	)		(108,000	)
EQT Corp.		(3,300	)		(164,670	)
Forest Oil Corp.*		(4,000	)		(151,320	)
Newfield Exploration Co.*		(1,600	)		(121,616	)
Northern Oil and Gas, Inc.*		(4,200	)		(112,140	)
Overseas Shipholding Group, Inc.		(4,100	)		(131,774	)
Penn Virginia Corp.		(6,400	)		(108,544	)
Petrohawk Energy Corp.*		(6,600	)		(161,964	)
Pioneer Natural Resources Co.		(1,100	)		(112,112	)
Plains Exploration & Production Co.*		(3,700	)		(134,051	)
Range Resources Corp.		(3,300	)		(192,918	)
Rosetta Resources, Inc.*		(2,700	)		(128,358	)
Schlumberger Ltd.		(1,300	)		(121,238	)
Swift Energy Co.*		(2,700	)		(115,236	)
TransAtlantic Petroleum Ltd.*		(32,600	)		(101,060	)
TransCanada Corp.		(5,700	)		(231,021	)
					(2,605,882	)
Health Care — (10.6%)
athenahealth, Inc.*		(1,300	)		(58,669	)
Bio-Reference Labs, Inc.*		(7,500	)		(168,300	)
Brookdale Senior Living, Inc.*		(4,400	)		(123,200	)
Cerner Corp.*		(1,400	)		(155,680	)
Conceptus, Inc.*		(7,100	)		(102,595	)
Covance, Inc.*		(2,200	)		(120,384	)
Edwards Lifesciences Corp.*		(2,700	)		(234,900	)
Emeritus Corp.*		(5,700	)		(145,122	)
HeartWare International, Inc.*		(2,000	)		(171,060	)
HMS Holdings Corp.*		(1,600	)		(130,960	)
Hospira, Inc.*		(4,400	)		(242,880	)
Immunogen, Inc.*		(9,000	)		(81,630	)
InterMune, Inc.*		(2,800	)		(132,132	)
Landauer, Inc.		(3,000	)		(184,560	)

124

Touchstone Market Neutral Equity Fund (Continued)

Securities Sold Short — (94.3%) (Continued)	Shares			Market Value
MAKO Surgical Corp.*		(5,900	)	$	(142,780	)
NuVasive, Inc.*		(2,200	)		(55,704	)
Parexel International Corp.*		(4,900	)		(122,010	)
Pharmasset, Inc.*		(1,700	)		(133,807	)
Qiagen NV*		(5,400	)		(108,270	)
Quality Systems, Inc.		(1,400	)		(116,676	)
ResMed, Inc.*		(3,300	)		(99,000	)
SIGA Technologies, Inc.*		(6,900	)		(83,490	)
St. Jude Medical, Inc.		(2,100	)		(107,646	)
Stryker Corp.		(3,400	)		(206,720	)
Theravance, Inc.*		(4,200	)		(101,724	)
Thoratec Corp.*		(2,200	)		(57,046	)
VCA Antech, Inc.*		(5,700	)		(143,526	)
Volcano Corp.*		(4,400	)		(112,640	)
					(3,643,111	)
Industrials — (11.6%)
ABM Industries, Inc.		(9,000	)		(228,510	)
Aegean Marine Petroleum Network, Inc.		(6,000	)		(48,960	)
Alexander & Baldwin, Inc.		(2,500	)		(114,125	)
American Superconductor Corp.*		(3,000	)		(74,610	)
AMR Corp.*		(14,800	)		(95,608	)
Boeing Co. (The)		(1,400	)		(103,502	)
Caterpillar, Inc.		(1,400	)		(155,890	)
CBIZ, Inc.*		(22,600	)		(162,946	)
DigitalGlobe, Inc.*		(4,100	)		(114,923	)
EnerNOC, Inc.*		(2,700	)		(51,597	)
GATX Corp.		(4,400	)		(170,104	)
General Electric Co.		(5,200	)		(104,260	)
Ingersoll-Rand plc		(2,900	)		(140,099	)
Kennametal, Inc.		(3,600	)		(140,400	)
Manpower, Inc.		(1,600	)		(100,608	)
Meritor, Inc.*		(5,000	)		(84,850	)
Mine Safety Appliances Co.		(3,300	)		(121,011	)
Mobile Mini, Inc.*		(5,300	)		(127,306	)
Otter Tail Corp.		(4,400	)		(100,012	)
Pall Corp.		(2,500	)		(144,025	)
Precision Castparts Corp.		(1,100	)		(161,898	)
Ritchie Bros Auctioneers, Inc.		(7,400	)		(208,310	)
Roper Industries, Inc.		(2,000	)		(172,920	)
Spirit Aerosystems Holdings, Inc. - Class A*		(4,400	)		(112,948	)
Stericycle, Inc.*		(1,400	)		(124,138	)
Titan Machinery, Inc.*		(6,400	)		(161,600	)
TransDigm Group, Inc.*		(2,500	)		(209,575	)
UTi Worldwide, Inc.		(7,100	)		(143,704	)
Waste Management, Inc.		(4,100	)		(153,094	)
Westport Innovations Inc.*		(5,700	)		(125,286	)
					(3,956,819	)
Consumer Discretionary — (12.6%)
Amazon.com, Inc.*		(800	)		(144,104	)
America's Car-Mart, Inc.*		(5,800	)		(149,524	)
Brown Shoe Co., Inc.		(10,000	)		(122,200	)
Callaway Golf Co.		(17,800	)		(121,396	)
CarMax, Inc.*		(4,600	)		(147,660	)

	Shares			Market Value
Carnival Corp.		(2,900	)	$	(111,244	)
Carter's, Inc.*		(4,900	)		(140,287	)
Cracker Barrel Old Country Store, Inc.		(3,200	)		(157,248	)
Gaylord Entertainment Co.*		(2,900	)		(100,572	)
Hanesbrands, Inc.*		(7,300	)		(197,392	)
hhgregg, Inc.*		(3,300	)		(44,187	)
Home Depot, Inc.		(3,300	)		(122,298	)
Jack in the Box, Inc.*		(7,300	)		(165,564	)
John Wiley & Sons, Inc. - Class A		(3,000	)		(152,520	)
Jones Group, Inc. (The)		(15,800	)		(217,250	)
K12, Inc.*		(4,100	)		(138,170	)
Kohl's Corp.		(4,300	)		(228,072	)
Lumber Liquidators Holdings, Inc.*		(4,900	)		(122,451	)
Magna International, Inc. - Class A		(2,500	)		(119,775	)
MDC Holdings, Inc.		(8,700	)		(220,545	)
NIKE, Inc. - Class B		(3,000	)		(227,100	)
OfficeMax, Inc.*		(11,100	)		(143,634	)
Orient-Express Hotels Ltd. - Class A*		(9,000	)		(111,330	)
Peet's Coffee & Tea, Inc.*		(2,200	)		(105,798	)
Regis Corp.		(7,700	)		(136,598	)
Ryland Group, Inc.		(6,000	)		(95,400	)
Skechers U.S.A., Inc. - Class A*		(10,300	)		(211,562	)
Thomson Reuters Corp.		(2,500	)		(98,100	)
Walt Disney Co. (The)		(3,400	)		(146,506	)
World Wrestling Entertainment, Inc. - Class A		(8,200	)		(103,074	)
					(4,301,561	)
Information Technology — (19.6%)
Altera Corp.		(3,800	)		(167,276	)
Apple, Inc.*		(300	)		(104,535	)
Aspen Technology, Inc.*		(7,400	)		(110,926	)
Blackboard, Inc.*		(2,700	)		(97,848	)
Cavium Networks, Inc.*		(3,800	)		(170,734	)
Ceva, Inc.*		(4,800	)		(128,304	)
Citrix Systems, Inc.*		(2,300	)		(168,958	)
Cognizant Technology Solutions Corp. - Class A*		(1,700	)		(138,380	)
Computer Sciences Corp.		(3,500	)		(170,555	)
Concur Technologies, Inc.*		(3,000	)		(166,350	)
Constant Contact, Inc.*		(6,300	)		(219,870	)
Corning, Inc.		(5,600	)		(115,528	)
Cree, Inc.*		(1,400	)		(64,624	)
DemandTec, Inc.*		(11,200	)		(147,392	)
Digital River, Inc.*		(4,200	)		(157,206	)
Electronic Arts, Inc.*		(5,700	)		(111,321	)
Equinix, Inc.*		(2,700	)		(245,970	)
FSI International, Inc.*		(26,300	)		(115,194	)
Genpact Ltd.*		(6,600	)		(95,568	)
Informatica Corp.*		(3,000	)		(156,690	)
Intersil Corp. - Class A		(10,200	)		(126,990	)
Ixia*		(5,700	)		(90,516	)
Limelight Networks, Inc.*		(21,100	)		(151,076	)
LogMeIn, Inc.*		(2,500	)		(105,400	)
Marvell Technology Group Ltd.*		(4,600	)		(71,530	)

125

Touchstone Market Neutral Equity Fund (Continued)

Securities Sold Short — (94.3%) (Continued)	Shares			Market Value
Maxwell Technologies, Inc.*		(5,200	)	$	(89,804	)
Mellanox Technologies Ltd.*		(4,000	)		(100,920	)
Microchip Technology, Inc.		(3,300	)		(125,433	)
Micron Technology, Inc.*		(11,200	)		(128,352	)
NetApp, Inc.*		(3,300	)		(158,994	)
OpenTable, Inc.*		(1,400	)		(148,890	)
Pegasystems, Inc.		(3,300	)		(125,202	)
Power Integrations, Inc.		(2,400	)		(91,992	)
Rackspace Hosting, Inc.*		(1,900	)		(81,415	)
RightNow Technologies, Inc.*		(7,400	)		(231,620	)
Salesforce.com, Inc.*		(1,900	)		(253,802	)
SAVVIS, Inc.*		(4,100	)		(152,069	)
Sina Corp.*		(1,900	)		(203,376	)
Sourcefire, Inc.*		(4,400	)		(121,044	)
SuccessFactors, Inc.*		(6,800	)		(265,812	)
Sycamore Networks, Inc.		(5,000	)		(122,150	)
Synchronoss Technologies, Inc.*		(3,400	)		(118,150	)
Tekelec*		(9,300	)		(75,516	)
TiVo, Inc.*		(8,200	)		(71,832	)
Ultimate Software Group, Inc.*		(4,400	)		(258,500	)
Universal Display Corp.*		(2,600	)		(143,104	)
VMware, Inc. - Class A*		(1,300	)		(106,002	)
Xerox Corp.		(13,100	)		(139,515	)
					(6,712,235	)
Financials — (20.7%)
Alexandria Real Estate Equities, Inc. REIT		(1,400	)		(109,158	)
AMB Property Corp. REIT		(4,100	)		(147,477	)
Arch Capital Group Ltd.*		(2,100	)		(208,299	)
Associated Banc-Corp.		(10,800	)		(160,380	)
BancorpSouth, Inc.		(10,700	)		(165,315	)
Bank of America Corp.		(6,800	)		(90,644	)
Bank of New York Mellon Corp.		(4,600	)		(137,402	)
BioMed Realty Trust, Inc. REIT		(7,600	)		(144,552	)
Cincinnati Financial Corp.		(8,800	)		(288,640	)
Citigroup, Inc.*		(26,500	)		(117,130	)
Comerica, Inc.		(3,200	)		(117,504	)
Corporate Office Properties Trust REIT		(4,100	)		(148,174	)
Cullen/Frost Bankers, Inc.		(3,100	)		(182,962	)
Developers Diversified Realty Corp. REIT		(9,000	)		(126,000	)
Digital Realty Trust, Inc. REIT		(4,700	)		(273,258	)
DuPont Fabros Technology, Inc. REIT		(4,500	)		(109,125	)
First Horizon National Corp.		(15,260	)		(171,065	)
First Industrial Realty Trust, Inc. REIT*		(10,800	)		(128,412	)
First Midwest Bancorp, Inc.		(10,200	)		(120,258	)
First Potomac Realty Trust REIT		(14,700	)		(231,525	)
Flagstone Reinsurance Holdings SA		(24,800	)		(223,448	)
Gleacher & Co., Inc.*		(34,700	)		(60,378	)
Hilltop Holdings, Inc.*		(20,500	)		(205,820	)
Horace Mann Educators Corp.		(6,400	)		(107,520	)
Iberiabank Corp.		(4,400	)		(264,572	)

	Shares			Market Value
Interactive Brokers Group, Inc. - Class A		(7,100	)	$	(112,819	)
Investors Real Estate Trust REIT		(3,400	)		(32,300	)
Jefferies Group, Inc.		(4,300	)		(107,242	)
Kilroy Realty Corp. REIT		(3,800	)		(147,554	)
Loews Corp.		(2,900	)		(124,961	)
Markel Corp.*		(300	)		(124,335	)
Mercury General Corp.		(5,900	)		(230,867	)
Morgan Stanley		(2,700	)		(73,764	)
Northern Trust Corp.		(1,900	)		(96,425	)
Old Republic International Corp.		(11,200	)		(142,128	)
PacWest Bancorp		(5,200	)		(113,100	)
Park National Corp.		(3,000	)		(200,460	)
People's United Financial, Inc.		(8,500	)		(106,930	)
Platinum Underwriters Holdings Ltd.		(3,600	)		(137,124	)
PMI Group, Inc. (The)*		(34,800	)		(93,960	)
Regions Financial Corp.		(9,600	)		(69,696	)
State Street Corp.		(2,500	)		(112,350	)
Stifel Financial Corp.*		(1,600	)		(114,864	)
Susquehanna Bancshares, Inc.		(11,500	)		(107,525	)
Synovus Financial Corp.		(68,900	)		(165,360	)
TCF Financial Corp.		(8,600	)		(136,396	)
TFS Financial Corp.		(26,200	)		(278,244	)
Umpqua Holdings Corp.		(6,300	)		(72,072	)
Zions Bancorporation		(5,500	)		(126,830	)
					(7,066,324	)
Total Common Stocks				$	(32,261,376	)
Total Securities Sold Short ($28,246,804)				$	(32,261,376	)
Total Investment Securities — 0.0% (Cost ($1,267,253))				$	9,210
Cash Collateral for Securities Sold Short — 100.2%					34,262,597
Liabilities in Excess of Other Assets — (0.2)%					(64,949	)
Net Assets — 100.0%				$	34,206,858

*  Non-income producing security.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

REIT – Real Estate Investment Trust

126

Touchstone Market Neutral Equity Fund (Continued)

Other Information:

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

Valuation Inputs at Reporting Date:

Description	Level 1			Level 2		Level 3		Total
Collateral for Securities Sold Short	$	—		$	34,262,597	$	—	$	34,262,597
Investment Fund		126,246			—		—		126,246
Common Stocks		(117,036	)		—		—		(117,036	)
								$	34,271,807

See accompanying notes to financial statements.

127

Portfolio of Investments
Touchstone Mid Cap Fund – March 31, 2011 (Unaudited)

Common Stocks — 98.3%	Shares		Market Value
Information Technology — 19.0%
Alliance Data Systems Corp.* †		9,930	$	852,888
Autodesk, Inc.*		33,600		1,482,096
Avago Technologies Ltd.		54,400		1,691,840
Cadence Design Systems, Inc.*		218,130		2,126,768
Check Point Software Technologies Ltd.*		42,240		2,156,352
Citrix Systems, Inc.*		24,420		1,793,893
Fidelity National Information Services, Inc.		55,620		1,818,218
IAC / InterActiveCorp*		66,770		2,062,525
Intuit, Inc.*		32,190		1,709,289
MercadoLibre, Inc. †		26,840		2,190,949
NetApp, Inc.*		15,650		754,017
Rovi Corp.*		32,230		1,729,139
SanDisk Corp.*		30,190		1,391,457
Teradyne, Inc.*		32,610		580,784
				22,340,215
Financials — 13.3%
Arch Capital Group Ltd.*		9,530		945,281
CIT Group, Inc.*		33,690		1,433,510
City National Corp.		29,300		1,671,565
Digital Realty Trust, Inc. REIT †		14,650		851,751
Discover Financial Services		75,430		1,819,372
Douglas Emmett, Inc. REIT		66,250		1,242,187
Essex Property Trust, Inc. REIT		13,530		1,677,720
IntercontinentalExchange, Inc.*		15,010		1,854,335
Jones Lang LaSalle, Inc.		19,060		1,901,044
Marsh & McLennan Cos., Inc.		49,150		1,465,162
SunTrust Banks, Inc.		25,700		741,188
				15,603,115
Consumer Discretionary — 12.7%
Autoliv, Inc.		22,400		1,662,752
Chico's FAS, Inc.		80,230		1,195,427
DISH Network Corp. - Class A*		48,180		1,173,665
Hasbro, Inc.		19,310		904,480
Lear Corp.		52,970		2,588,644
Scripps Networks Interactive, Inc. - Class A		29,410		1,473,147
Stanley Black & Decker, Inc.		28,700		2,198,420
Starwood Hotels & Resorts Worldwide, Inc.		30,200		1,755,224
Wynn Resorts Ltd.		15,580		1,982,555
				14,934,314
Industrials — 10.8%
AerCap Holdings NV*		55,180		693,613
Cooper Industries PLC		24,860		1,613,414
Goodrich Corp.		20,470		1,750,799
Joy Global, Inc.		20,710		2,046,355
Kansas City Southern*		35,390		1,926,985
McDermott International, Inc.*		92,400		2,346,036
United Continental Holdings, Inc.* †		24,370		560,266
W.W. Grainger, Inc.		12,620		1,737,522
				12,674,990
Materials — 9.9%
Carpenter Technology Corp.		40,815		1,743,209
Cliffs Natural Resources, Inc.		19,510		1,917,443

	Shares		Market Value
Cytec Industries, Inc.		28,890	$	1,570,749
Molycorp, Inc.* †		20,140		1,208,803
Scotts Miracle-Gro Co. (The) - Class A		20,910		1,209,643
Stillwater Mining Co.*		71,110		1,630,552
Walter Energy, Inc.		16,850		2,281,996
				11,562,395
Health Care — 9.8%
Alexion Pharmaceuticals, Inc.*		20,280		2,001,230
AmerisourceBergen Corp.		38,070		1,506,049
DaVita, Inc.*		17,520		1,498,135
Dendreon Corp.*		22,670		848,538
SXC Health Solutions Corp.*		23,390		1,281,772
United Therapeutics Corp.*		22,900		1,534,758
Valeant Pharmaceuticals International, Inc. †		57,950		2,886,490
				11,556,972
Energy — 8.9%
Concho Resources, Inc.*		18,900		2,027,970
Ensco PLC ADR		35,400		2,047,536
Newfield Exploration Co.*		14,725		1,119,247
Oil States International, Inc.*		29,840		2,272,018
QEP Resources, Inc.		40,590		1,645,519
Whiting Petroleum Corp.*		18,850		1,384,532
				10,496,822
Consumer Staples — 7.3%
Green Mountain Coffee Roasters, Inc.* †		50,500		3,262,805
Herbalife Ltd.		23,420		1,905,451
Mead Johnson Nutrition Co. - Class A		24,150		1,399,010
Whole Foods Market, Inc.		30,360		2,000,724
				8,567,990
Utilities — 4.0%
Northeast Utilities		52,760		1,825,496
Questar Corp.		88,070		1,536,822
TECO Energy, Inc.		72,190		1,354,284
				4,716,602
Telecommunication Services — 2.6%
SBA Communications Corp. - Class A*		48,860		1,938,765
Windstream Corp.		86,280		1,110,424
				3,049,189
Total Common Stocks			$	115,502,604
Investment Funds — 10.5%
Invesco Liquid Assets Portfolio **		11,840,331		11,840,331
Touchstone Institutional Money Market Fund^		520,788		520,788
Total Investment Funds			$	12,361,119
Total Investment Securities — 108.8% (Cost $103,329,407)			$	127,863,723
Liabilities in Excess of Other Assets — (8.8%)				(10,293,275	)
Net Assets — 100.0%			$	117,570,448

128

Touchstone Mid Cap Fund (Continued)

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $11,632,189.

*  Non-income producing security.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	115,502,604	$	—	$	—	$	115,502,604
Investment Funds		12,361,119		—		—		12,361,119
							$	127,863,723

See accompanying notes to financial statements.

129

Portfolio of Investments
Touchstone Mid Cap Value Fund – March 31, 2011 (Unaudited)

Common Stocks — 97.4%	Shares		Market Value
Financials — 23.2%
Ameriprise Financial, Inc.		12,632	$	771,563
Boston Properties, Inc. REIT		7,561		717,161
Comerica, Inc.		20,609		756,762
Endurance Specialty Holdings Ltd.		15,170		740,599
Federated Investors, Inc. - Class B †		30,290		810,257
Fifth Third Bancorp		54,850		761,318
Host Hotels & Resorts, Inc. REIT		43,826		771,776
Liberty Property Trust REIT †		24,365		801,609
PartnerRe Ltd.		9,979		790,736
People's United Financial, Inc.		56,279		707,990
ProAssurance Corp.*		12,753		808,158
Reinsurance Group of America, Inc.		13,022		817,521
Synovus Financial Corp. †		147,542		354,101
TCF Financial Corp.		45,868		727,466
Unum Group		33,142		869,978
Willis Group Holdings PLC		20,409		823,707
Zions Bancorporation †		35,304		814,110
				12,844,812
Industrials — 14.0%
Avery Dennison Corp.		19,508		818,556
Cintas Corp.		31,733		960,558
Dover Corp.		12,769		839,434
Flowserve Corp.		5,891		758,761
Fluor Corp.		10,850		799,211
Masco Corp.		46,399		645,874
Pitney Bowes, Inc.		28,807		740,052
Republic Services, Inc.		26,456		794,738
Spirit Aerosystems Holdings, Inc. - Class A*		25,366		651,145
Towers Watson & Co. - Class A		12,884		714,546
				7,722,875
Utilities — 10.3%
AGL Resources, Inc.		25,103		1,000,104
Constellation Energy Group, Inc.		17,702		551,064
Edison International		14,519		531,250
Great Plains Energy, Inc.		44,812		897,136
Portland General Electric Co.		25,999		617,996
SCANA Corp.		20,168		794,014
TECO Energy, Inc.		29,499		553,401
Xcel Energy, Inc.		30,956		739,539
				5,684,504
Energy — 10.0%
EQT Corp.		15,007		748,849
Murphy Oil Corp.		10,600		778,252
Nabors Industries Ltd.*		30,475		925,831
Newfield Exploration Co.*		10,904		828,813
Pioneer Natural Resources Co.		7,315		745,545
Range Resources Corp.		13,292		777,050
Spectra Energy Corp.		27,238		740,329
				5,544,669

	Shares		Market Value
Materials — 9.3%
Alcoa, Inc.		33,401	$	589,528
Allegheny Technologies, Inc.		13,840		937,245
Bemis Co., Inc.		19,859		651,574
Huntsman Corp.		33,336		579,380
Nucor Corp.		17,980		827,439
Owens-Illinois, Inc.*		26,674		805,288
Packaging Corp of America		25,098		725,081
				5,115,535
Information Technology — 8.7%
Adobe Systems, Inc.*		25,304		839,081
Analog Devices, Inc.		21,007		827,256
Brocade Communications Systems, Inc.*		113,260		696,549
Molex, Inc. †		31,427		789,446
Symantec Corp.*		37,717		699,273
Synopsys, Inc.*		35,191		973,031
				4,824,636
Consumer Discretionary — 7.7%
American Eagle Outfitters, Inc.		50,187		797,472
Gap, Inc. (The)		29,700		673,002
Harley-Davidson, Inc.		19,121		812,451
International Game Technology		39,913		647,788
Interpublic Group of Cos., Inc.		59,329		745,766
Urban Outfitters, Inc.*		18,763		559,700
				4,236,179
Consumer Staples — 7.2%
ConAgra Foods, Inc.		33,306		791,017
Constellation Brands, Inc. - Class A*		35,435		718,622
Kroger Co. (The)		34,116		817,761
Molson Coors Brewing Co. - Class B		19,423		910,744
Sysco Corp.		25,974		719,480
				3,957,624
Health Care — 7.0%
AmerisourceBergen Corp.		20,409		807,380
Hologic, Inc.*		36,243		804,594
Patterson Cos., Inc.		25,749		828,860
Quest Diagnostics, Inc.		11,744		677,864
Teleflex, Inc.		13,157		762,843
				3,881,541
Total Common Stocks			$	53,812,375
Investment Funds — 10.0%
Invesco Liquid Assets Portfolio **		3,846,998		3,846,998
iShares Russell Midcap Value Index Fund †		17,806		857,536
Touchstone Institutional Money Market Fund^		817,906		817,906
Total Investment Funds			$	5,522,440
Total Investment Securities — 107.4%(Cost $52,192,598)			$	59,334,815
Liabilities in Excess of Other Assets — (7.4%)				(4,084,235	)
Net Assets — 100.0%			$	55,250,580

130

Touchstone Mid Cap Value Fund (Continued)

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $3,748,790.

*  Non-income producing security.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	53,812,375	$	—	$	—	$	53,812,375
Investment Funds		5,522,440		—		—		5,522,440
							$	59,334,815

See accompanying notes to financial statements.

131

Portfolio of Investments
Touchstone Premium Yield Equity Fund – March 31, 2011 (Unaudited)

Common Stocks — 97.9%	Shares		Market Value
Energy — 25.2%
Enerplus Corp.		54,705	$	1,731,960
Kinder Morgan Management LLC*		43,897		2,879,204
Seadrill Ltd.		41,787		1,507,257
Southern Union Co.		46,796		1,339,302
Spectra Energy Corp.		47,455		1,289,827
Statoil ASA ADR		49,037		1,355,383
Williams Cos., Inc. (The)		29,000		904,220
				11,007,153
Utilities — 17.2%
American Water Works Co., Inc.		63,669		1,785,915
National Grid PLC ADR		23,069		1,108,235
NiSource, Inc.		77,774		1,491,705
Northeast Utilities		24,387		843,790
ONEOK, Inc.		25,046		1,675,077
Pepco Holdings, Inc.		32,955		614,611
				7,519,333
Health Care — 17.1%
Abbott Laboratories		36,646		1,797,486
Bristol-Myers Squibb Co.		25,046		661,966
Eli Lilly & Co.		21,750		764,947
GlaxoSmithKline PLC ADR		31,241		1,199,967
Johnson & Johnson		19,773		1,171,550
Merck & Co., Inc.		32,955		1,087,845
Pfizer, Inc.		38,887		789,795
				7,473,556
Telecommunication Services — 11.6%
AT&T, Inc.		34,273		1,048,754
BCE, Inc.		12,523		455,086
Tele Norte Leste Participacoes SA ADR		38,887		681,689
Telefonica SA ADR		43,501		1,097,095
Vodafone Group PLC ADR		29,791		856,491
Windstream Corp.		71,842		924,607
				5,063,722
Financials — 11.5%
Annaly Capital Management, Inc. REIT		23,464		409,447
Bank of Montreal		9,887		642,457
Cincinnati Financial Corp.		27,682		907,970
Digital Realty Trust, Inc. REIT		15,159		881,344
HCP, Inc. REIT		35,196		1,335,336
NYSE Euronext		24,292		854,350
				5,030,904
Information Technology — 7.5%
Intel Corp.		59,319		1,196,464
Maxim Integrated Products, Inc.		33,219		850,407
Microchip Technology, Inc.		31,637		1,202,522
				3,249,393
Industrials — 2.9%
R.R. Donnelley & Sons Co.		65,910		1,247,017

	Shares		Market Value
Materials — 2.0%
MeadWestvaco Corp.		28,737	$	871,593
Consumer Staples — 1.8%
H.J. Heinz Co.		15,950		778,679
Consumer Discretionary — 1.1%
Cinemark Holdings, Inc.		23,859		461,671
Total Common Stocks			$	42,703,021
Investment Fund — 2.0%
Touchstone Institutional Money Market Fund^		866,515	$	866,515
Total Investment Securities — 99.9% (Cost $37,239,864)			$	43,569,536
Other Assets in Excess of Liabilities — 0.1%				52,607
Net Assets — 100.0%			$	43,622,143

*  Non-income producing security.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	42,703,021	$	—	$	—	$	42,703,021
Investment Fund		866,515		—		—		866,515
							$	43,569,536

See accompanying notes to financial statements.

132

Portfolio of Investments
Touchstone Sands Capital Select Growth Fund – March 31, 2011 (Unaudited)

Common Stocks — 98.7%	Shares		Market Value
Information Technology — 36.9%
Apple, Inc.*		193,300	$	67,355,385
ASML Holding NV		541,000		24,074,500
Cree, Inc.* †		424,000		19,571,840
F5 Networks, Inc.*		302,775		31,055,632
Google, Inc. - Class A*		83,500		48,948,535
OpenTable, Inc.*		42,518		4,521,789
QUALCOMM, Inc.		1,203,700		65,998,871
Salesforce.com, Inc.*		562,100		75,085,318
Visa, Inc. - Class A		838,500		61,730,370
				398,342,240
Consumer Discretionary — 19.0%
Amazon.com, Inc.*		436,900		78,698,797
Las Vegas Sands Corp.*		618,300		26,104,626
Netflix, Inc.* †		104,300		24,753,519
NIKE, Inc. - Class B		378,200		28,629,740
Priceline.com, Inc.*		30,000		15,193,200
Starbucks Corp.		854,300		31,566,385
				204,946,267
Health Care — 17.1%
Alexion Pharmaceuticals, Inc.*		297,200		29,327,696
Allergan, Inc.		566,500		40,232,830
Illumina, Inc.* †		641,300		44,935,891
Intuitive Surgical, Inc.*		124,100		41,382,386
Varian Medical Systems, Inc.*		421,800		28,530,552
				184,409,355
Energy — 13.9%
FMC Technologies, Inc.*		358,885		33,907,455
National-Oilwell Varco, Inc.		584,500		46,333,315
Schlumberger Ltd.		523,500		48,821,610
Southwestern Energy Co.*		473,700		20,354,889
				149,417,269
Financials — 5.9%
Charles Schwab Corp. (The)		1,752,300		31,593,969
IntercontinentalExchange, Inc.*		261,137		32,260,865
				63,854,834
Industrials — 4.1%
CH Robinson Worldwide, Inc.		257,500		19,088,475
W.W. Grainger, Inc.		179,300		24,686,024
				43,774,499
Materials — 1.8%
Praxair, Inc.		191,600		19,466,560
Total Common Stocks			$	1,064,211,024

	Shares		Market Value
Investment Funds — 9.6%
Invesco Liquid Assets Portfolio **		85,925,026	$	85,925,026
Touchstone Institutional Money Market Fund^		18,114,494		18,114,494
Total Investment Funds			$	104,039,520
Total Investment Securities — 108.3%(Cost $871,181,441)			$	1,168,250,544
Liabilities in Excess of Other Assets — (8.3%)				(89,594,783	)
Net Assets — 100.0%			$	1,078,655,761

*  Non-income producing security.

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $84,005,123.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

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	$	1,064,211,024	$	—	$	—	$	1,064,211,024
Investment Funds		104,039,520		—		—		104,039,520
							$1,168,250,544

See accompanying notes to financial statements.

133

Portfolio of Investments
Touchstone Short Duration Fixed Income Fund – March 31, 2011 (Unaudited)

Principal Amount			Market Value
		Asset-Backed Securities — 31.8%
$	480,000	American Express Credit Account Master Trust, Ser 2005-4, Class A, 0.325%, 1/15/15 (a)	$	479,710
	310,000	American Express Credit Account Master Trust, Ser 2010-1, Class A, 0.505%, 11/16/15 (a)		310,510
	125,000	American Tower Trust, Ser 2007-1A, Class AFX, 144a, 5.420%, 4/15/37		134,052
	215,000	AmeriCredit Automobile Receivables Trust, Ser 2010-3, Class A3, 1.140%, 4/8/15		214,544
	78,238	Bank of America Auto Trust, Ser 2008-1A, Class A3A, 144a, 4.970%, 9/20/12		79,034
	235,000	Cabela's Master Credit Card Trust, Ser 2006-3A, Class A1, 144a, 5.260%, 10/15/14		239,720
	270,000	Chase Issuance Trust, Ser 2007-A17, Class A, 5.120%, 10/15/14		287,495
	430,000	Chase Issuance Trust, Ser 2008-A11, Class A11, 5.400%, 7/15/15		469,222
	238,035	Chrysler Financial Auto Securitization Trust, Ser 2009-A, Class A3, 2.820%, 1/15/16		241,349
	405,000	Citibank Omni Master Trust, Ser 2009-A17, Class A17, 144a, 4.900%, 11/15/18		433,135
	99,780	CNH Equipment Trust, Ser 2008-B, Class A4A, 5.600%, 11/17/14		102,489
	117,746	CNH Equipment Trust, Ser 2009-A, Class A3, 5.280%, 11/15/12		118,589
	425,000	CNH Equipment Trust, Ser 2009-B, Class A4, 5.170%, 10/15/14		442,155
	215,000	CNH Equipment Trust, Ser 2010-A, Class A4, 2.490%, 1/15/16		219,134
	237,177	College & University Facility Loan Trust, Ser 2, Class D, 4.000%, 6/1/18		237,177
	165,621	Community Program Loan Trust, Ser 1987-A, Class A4, 4.500%, 10/1/18		167,138
	425,000	Discover Card Master Trust, Ser 2008-A3, Class A3, 5.100%, 10/15/13		425,763
	402,014	FDIC Structured Sale Guaranteed Notes, Ser 2010-S3, Class A, 144a, 2.740%, 12/3/20		397,793
	395,000	Ford Credit Auto Lease Trust, Ser 2010-A, Class A3, 144a, 1.620%, 11/15/13		396,231
	140,000	Ford Credit Auto Owner Trust, Ser 2009-B, Class A4, 4.500%, 7/15/14		147,796
	700,000	GE Capital Credit Card Master Note Trust, Ser 2009-2, Class A, 3.690%, 7/15/15		724,747

Principal Amount			Market Value
$	405,000	GE Capital Credit Card Master Note Trust, Ser 2010-3, Class A, 2.210%, 6/15/16	$	411,462
	185,832	GE Equipment Midticket LLC, Ser 2009-1, Class A3, 2.340%, 6/17/13		187,356
	240,000	GE Equipment Midticket LLC, Ser 2010-1, Class A3, 144a, 0.940%, 7/14/14		239,706
	240,000	GE Equipment Small Ticket LLC, Ser 2011-1A, Class A3, 144a, 1.450%, 1/21/18		239,627
	240,000	Great America Leasing Receivables, Ser 2011-1, Class A3, 144a, 1.690%, 2/15/14		240,676
	65,504	Greenwich Capital Commercial Funding Corp., Ser 2004-GG1, Class A5, 4.883%, 6/10/36		65,995
	300,000	Harley-Davidson Motorcycle Trust, Ser 2009-2, Class A4, 3.320%, 2/15/17		308,508
	400,000	Huntington Auto Trust, Ser 2009-1A, Class A4, 144a, 5.730%, 1/15/14		419,380
	174,370	IMC Home Equity Loan Trust, Ser 1997-5, Class A9, 7.310%, 11/20/28		172,235
	385,000	MMAF Equipment Finance LLC, Ser 2009-AA, Class A3, 144a, 2.370%, 11/15/13		388,516
	79,976	Morgan Stanley Capital I, Ser 2007-HQ11, Class A1, 5.246%, 2/12/44		80,517
	440,000	Nissan Auto Lease Trust, Ser 2009-A, Class A4, 3.510%, 11/17/14		443,043
	440,000	Nissan Auto Lease Trust, Ser 2010-A, Class A3, 1.390%, 1/15/16		442,178
	257,852	PG&E Energy Recovery Funding LLC, Ser 2005-1, Class A4, 4.370%, 6/25/14		264,531
	49,105	PG&E Energy Recovery Funding LLC, Ser 2005-2, Class A2, 5.030%, 3/25/14		50,358
	83,106	RSB Bondco LLC, Ser 2007-A, Class A1, 5.470%, 10/1/14		86,032
	450,000	Santander Consumer Acquired Receivables Trust, Ser 2011-WO, Class A3, 144a, 1.400%, 10/15/14		451,125
	285,000	Santander Drive Auto Receivables Trust, Ser 2010-1, Class A3, 1.840%, 11/17/14		288,103
	205,000	Santander Drive Auto Receivables Trust, Ser 2010-3, Class A2, 0.930%, 6/17/13		205,209
	418,346	Tax Liens Securitization Trust, Ser 2010-1A, Class 1A2, 144a, 2.000%, 4/15/18		419,935
	226,171	Volkswagen Auto Lease Trust, Ser 2009-A, Class A3, 3.410%, 4/16/12		227,544

134

Touchstone Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		Asset-Backed Securities — 31.8% (Continued)
$	305,000	Volkswagen Auto Lease Trust, Ser 2010-A, Class A3, 0.990%, 11/20/13	$	304,680
	385,778	Volvo Financial Equipment LLC, Ser 2010-1A, Class A2, 144a, 1.060%, 6/15/12		386,107
	260,000	World Financial Network Credit Card Master Trust, Ser 2009-A, Class A, 4.600%, 9/15/15		265,292
	180,000	World Financial Network Credit Card Master Trust, Ser 2009-B, Class A, 3.790%, 5/15/16		185,869
	370,000	World Financial Network Credit Card Master Trust, Ser 2009-D, Class A, 4.660%, 5/15/17		393,378
	228,864	World Omni Auto Receivables Trust, Ser 2007-B, Class A4, 5.390%, 5/15/13		233,936
		Total Asset-Backed Securities	$	13,669,081
		Corporate Bonds — 24.4% Financials — 14.2%
	350,000	American Express Bank, 0.406%, 6/12/12 (a)		348,966
	150,000	Bank of New York Mellon Corp., 5.125%, 11/1/11		154,113
	315,000	Bank of New York Mellon Corp. MTN, 4.950%, 11/1/12		334,815
	215,000	Barclays Bank PLC, 2.500%, 1/23/13		218,764
	195,000	CME Group, Inc., 5.750%, 2/15/14		215,793
	305,000	Credit Suisse/New York NY, 5.000%, 5/15/13		325,616
	225,000	FIA Card Services NA MTN, 6.625%, 6/15/12		236,507
	225,000	General Electric Capital Corp. MTN, 0.474%, 7/27/12 (a)		225,086
	275,000	Hudson United Bank, 7.000%, 5/15/12		293,437
	320,000	Jefferies Group, Inc., 7.750%, 3/15/12		339,042
	335,000	John Deere Capital Corp., Ser CORE, 2.000%, 4/15/11		335,058
	425,000	M&I Marshall & Ilsley Bank, 3.875%, 8/19/11		430,799
	285,000	Manufacturers & Traders Trust Co., 1.805%, 4/1/13 (a)		284,723
	60,000	Merrill Lynch & Co., Inc. MTN, 6.150%, 4/25/13		64,633
	300,000	MetLife of Connecticut Institutional Funding Ltd. MTN, 0.553%, 12/8/11 (a)		299,089
	205,000	Morgan Stanley, 5.300%, 3/1/13		217,888
	120,000	New York Life Global Funding, 144a, 5.250%, 10/16/12		127,827
	365,000	Northern Trust Corp., 5.300%, 8/29/11		371,911
	450,000	PNC Funding Corp., 2.300%, 6/22/12		459,750
	260,000	SunTrust Bank, Inc., 6.375%, 4/1/11		260,000

Principal Amount			Market Value
$	300,000	TD Ameritrade Holding Corp., 2.950%, 12/1/12	$	306,184
	241,984	Whc-Irs Trust, 6.980%, 5/15/15		269,149
				6,119,150
		Industrials — 3.4%
	225,000	Cooper US, Inc., 5.250%, 11/15/12		239,346
	137,948	Federal Express Corp. 1995 Pass Through Trust, Ser B2, 7.110%, 1/2/14		148,639
	123,756	Petrodrill Five Ltd., Ser 5, 4.390%, 4/15/16		128,341
	145,842	Petrodrill Four Ltd., Ser 4, 4.240%, 1/15/16		152,843
	200,000	Roper Industries, Inc., 6.625%, 8/15/13		221,220
	225,000	Ryder System, Inc. MTN, 5.950%, 5/2/11		225,715
	334,638	Systems 2001 AT LLC, 144a, 6.664%, 9/15/13		357,226
				1,473,330
		Telecommunication Services — 1.5%
	187,580	BellSouth Telecommunications, Inc., 6.300%, 12/15/15		200,843
	240,000	New Cingular Wireless Services, Inc., 8.125%, 5/1/12		258,311
	175,000	Verizon New England, Inc., 6.500%, 9/15/11		179,681
				638,835
		Consumer Staples — 1.3%
	323,157	CVS Pass-Through Trust, 144a, 6.117%, 1/10/13		343,354
	215,000	Kroger Co., 6.800%, 4/1/11		215,000
				558,354
		Energy — 1.3%
	250,000	Baker Hughes, Inc., 6.500%, 11/15/13		281,514
	271,420	Rowan Cos., Inc., 2.800%, 10/20/13		275,619
				557,133
		Information Technology — 0.9%
	150,000	Analog Devices, Inc., 5.000%, 7/1/14		163,025
	200,000	Hewlett-Packard Co., 2.250%, 5/27/11		200,658
				363,683
		Health Care — 0.8%
	330,000	Express Scripts, Inc., 5.250%, 6/15/12		345,764
		Materials — 0.5%
	185,000	Dow Chemical Co. (The), 7.600%, 5/15/14		213,791
		Utilities — 0.5%
	190,000	National Rural Utilities Cooperative Finance Corp. MTN, 7.250%, 3/1/12		201,300
		Total Corporate Bonds	$	10,471,340

135

Touchstone Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		U.S. Government Mortgage-Backed Obligations — 14.5%
$	68,306	FHLMC, Pool #D94598, 6.500%, 4/1/21	$	75,440
	11,272	FHLMC, Pool #E97227, 7.000%, 9/1/14		11,315
	110,471	FHLMC, Pool #C66916, 7.000%, 5/1/32		127,248
	92,302	FHLMC, Pool #G30085, 7.500%, 10/1/17		104,619
	288,988	FHLMC REMICS, Ser 2510, Class TA, 4.000%, 6/15/32		302,989
	8,925	FNMA, Pool #313429, 7.000%, 3/1/12		9,099
	25,315	FNMA, Pool #323441, 7.000%, 12/1/13		25,998
	110,411	FNMA, Pool #546474, 7.000%, 1/1/15		115,306
	6,484	FNMA, Pool #334593, 7.000%, 5/1/24		7,457
	109,383	FNMA, Pool #323832, 7.500%, 7/1/29		126,691
	156,898	FNMA, Pool #665773, 7.500%, 6/1/31		181,552
	12	FNMA, Pool #N 6222, 9.000%, 4/1/16		12
	117,464	FNMA REMICS, Ser 2003-66, Class AP, 3.500%, 11/25/32		122,003
	267,178	FNMA REMICS, Ser 2003-19, Class ME, 4.000%, 1/25/33		278,374
	426,009	FNMA REMICS, Ser 2003-42, Class CA, 4.000%, 5/25/33		446,248
	456,093	FNMA REMICS, Ser 2003-119, Class PU, 4.000%, 11/25/33		475,887
	161,267	GNMA, Ser 2004-43, Class A, 2.822%, 12/16/19		162,156
	9,637	GNMA, Pool #G2 8426, 3.000%, 11/20/18 (a)		9,984
	214,710	GNMA, Ser 2004-97, Class AB, 3.084%, 4/16/22		217,083
	171,626	GNMA, Ser 2006-39, Class A, 3.772%, 6/16/25		174,270
	85,420	GNMA, Ser 2004-6, Class B, 3.949%, 7/16/33		88,444
	280,718	GNMA, Ser 2005-76, Class A, 3.963%, 5/16/30		291,276
	62,495	GNMA, Ser 2005-79, Class A, 3.998%, 10/16/33		62,835
	148,635	GNMA, Ser 2005-12, Class A, 4.044%, 5/16/21		150,185
	296,445	GNMA, Ser 2003-43, Class B, 4.374%, 4/16/33		308,920
	517,921	GNMA, Ser 2002-72, Class AB, 4.500%, 10/20/32		546,184
	153,615	GNMA, Ser 2003-17, Class AB, 4.650%, 7/16/31		161,171
	380,000	GNMA, Ser 2004-78, Class C, 4.658%, 4/16/29		397,855
	326,176	GNMA, Ser 2004-12, Class BA, 4.807%, 8/16/32		341,376
	2,355	GNMA, Pool #G2 2707, 5.500%, 1/20/14		2,542
	2,209	GNMA, Pool #G2 2802, 5.500%, 7/20/14		2,383
	32,402	GNMA, Pool #G2 2843, 5.500%, 11/20/14		34,962

Principal Amount			Market Value
$	45,574	GNMA, Pool #578189, 6.000%, 2/15/32	$	50,425
	6,900	GNMA, Pool #462486, 6.500%, 1/15/13		7,517
	29,615	GNMA, Pool #569337, 6.500%, 4/15/22		33,525
	57,154	GNMA, Pool #780604, 7.000%, 7/15/12		58,294
	49,347	GNMA, Pool #G2 814, 8.000%, 8/20/17		55,466
	22,444	GNMA, Pool #780327, 8.000%, 11/15/17		25,298
	56,238	GNMA, Pool #780322, 8.000%, 11/15/22		65,322
	47,152	GNMA, Pool #344233, 8.000%, 2/15/23		55,157
	119,683	GNMA, Pool #345123, 8.000%, 12/15/23		140,002
	404,862	NCUA Guaranteed Notes, Ser 2010-C1, Class A1, 1.600%, 10/29/20		394,761
		Total U.S. Government Mortgage-Backed Obligations	$	6,247,631
		Commercial Mortgage-Backed Securities — 10.3%
	335,000	Banc of America Commercial Mortgage, Inc., Ser 2002-2, Class A3, 5.118%, 7/11/43		341,969
	375,000	Banc of America Commercial Mortgage, Inc., Ser 2005-1, Class A4, 5.071%, 11/10/42 (a)		386,080
	285,086	Banc of America Commercial Mortgage, Inc., Ser 2005-2, Class A4, 4.783%, 7/10/43 (a)		293,325
	218,766	First Union National Bank Commercial Mortgage, Ser 2001-C4, Class A2, 6.223%, 12/12/33		222,211
	4,404	GE Capital Commercial Mortgage Corp., Ser 2001-1, Class A2, 6.531%, 5/15/33		4,399
	345,627	GE Capital Commercial Mortgage Corp., Ser 2001-3, Class A2, 6.070%, 6/10/38		351,406
	335,000	GMAC Commercial Mortgage Securities, Inc., Ser 2003-C1, Class A2, 4.079%, 5/10/36		346,733
	320,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2003-CB6, Class A2, 5.255%, 7/12/37 (a)		339,322
	331,021	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2005-LDP3, Class A3, 4.959%, 8/15/42		341,885

136

Touchstone Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		Commercial Mortgage-Backed Securities — 10.3% (Continued)
$	286,310	LB-UBS Commercial Mortgage Trust, Ser 2002-C1, Class A4, 6.462%, 3/15/31	$	295,181
	319,925	LB-UBS Commercial Mortgage Trust, Ser 2002-C7, Class A3, 4.659%, 12/15/26		323,927
	95,059	LB-UBS Commercial Mortgage Trust, Ser 2003-C5, Class A3, 4.254%, 7/15/27		98,255
	315,000	LB-UBS Commercial Mortgage Trust, Ser 2003-C7, Class A3, 4.559%, 9/15/27 (a)		320,168
	243,733	Merrill Lynch Mortgage Investors, Inc., Ser 1998-C1, Class A3, 6.720%, 11/15/26 (a)		265,863
	415,000	Wachovia Bank Commercial Mortgage Trust, Ser 2003-C3, Class A2, 4.867%, 2/15/35		433,512
	65,042	Wells Fargo Mortgage Backed Securities Trust, Ser 2006-16, Class A12, 5.000%, 11/25/36		65,127
		Total Commercial Mortgage-Backed Securities	$	4,429,363
		U.S. Government Agency Obligations — 8.6%
	260,000	FNMA, 5.250%, 8/1/12		275,010
	265,533	SBA, Pool #506207, 1.000%, 11/25/14 (a)		265,602
	159,407	SBA, Pool #507442, 3.625%, 5/25/16 (a)		165,229
	292,116	SBA, Ser P10A, 4.504%, 2/1/14		305,057
	220,541	SBA, Ser 2008-10B, Class 1, 4.580%, 3/1/18		233,270
	132,302	SBA, Ser 2005-P10A, Class 1, 4.638%, 2/10/15		138,334
	202,531	SBA, Ser 2003-20E, Class 1, 4.640%, 5/1/23		213,004
	230,787	SBA, Ser 2004-20B, Class 1, 4.720%, 2/1/24		243,025
	185,409	SBA, Ser 2002-20J, Class 1, 4.750%, 10/1/22		195,465
	218,585	SBA, Ser 2005-20G, Class 1, 4.750%, 7/1/25		231,231
	236,169	SBA, Ser 2007-10E, Class 1, 5.250%, 9/1/17		252,035
	187,554	SBA, Ser 2006-P10A, Class 1, 5.408%, 2/10/16		201,257
	304,482	SBA, Ser 2007-P10B, Class 1, 5.788%, 8/10/17		335,860
	194,069	SBA, Ser 98-L, 5.800%, 12/1/18		209,254
	181,705	SBA, Ser 20C, 6.070%, 3/1/22		196,347
	208,524	SBA, 6.140%, 1/1/22		228,474
		Total U.S. Government Agency Obligations	$	3,688,454

Principal Amount			Market Value
		U.S. Treasury Obligations — 5.1%
$	125,000	U.S. Treasury Note, 4.125%, 8/31/12	$	131,353
	800,000	U.S. Treasury Note, 2.750%, 10/31/13		834,687
	400,000	U.S. Treasury Note, 1.875%, 4/30/14		406,906
	800,000	U.S. Treasury Note, 2.625%, 4/30/16		814,125
		Total U.S. Treasury Obligations	$	2,187,071
		Municipal Bonds — 3.2% California — 0.4%
	180,000	Southern California Public Power Auth. Rev, Ser 2010-B 3.326%, 7/1/14		179,971
		District of Columbia — 0.5%
	210,000	District of Columbia UTGO, Ser 2010 Class A 2.585%, 6/1/13		211,779
		Louisiana — 0.1%
	50,387	Louisiana Public Facilities Auth., Ser 2008 Class A 4.500%, 2/1/14		51,113
		Maine — 0.5%
	200,000	Maine State Housing Auth. Rev, Ser 2010 1.728%, 6/15/12		199,172
		Pennsylvania — 1.7%
	750,000	Commonwealth Fing Auth. PA Rev, Ser A 3.860%, 6/1/11		753,337
		Total Municipal Bonds	$	1,395,372
Shares			Market Value
		Investment Fund — 1.6%
	684,981	Touchstone Institutional Money Market Fund^	$	684,981
		Total Investment Securities — 99.5% (Cost $42,128,545)	$	42,773,293
		Other Assets in Excess of Liabilities — 0.5%		198,201
		Net Assets — 100.0%	$	42,971,494

^(a)  Variable rate security – the rate reflected is the rate in effect as of March 31, 2011.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

137

Touchstone Short Duration Fixed Income Fund (Continued)

Portfolio Abbreviations:

FHLMC – Federal Home Loan Mortgage Corp.

FNMA – Federal National Mortgage Association

GNMA – Government National Mortgage Association

MTN – Medium Term Note

NCUA – National Credit Union Administration

PLC – Public Limited Company

REMIC – Real Estate Mortgage Investment Conduit

SBA – Small Business Adminstration

UTGO – Unlimited Tax General Obligation

144a – This is a restricted security that was sold in a transaction exempt from Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2011, these securities were valued at $5,293,444 or 12.3% 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
Asset-Backed Securities	$	—	$	13,669,081	$	—	$	13,669,081
Corporate Bonds		—		10,471,340		—		10,471,340
U.S. Government Mortgage-Backed Obligations		—		6,247,631		—		6,247,631
Commercial Mortgage-Backed Securities		—		4,429,363		—		4,429,363
U.S. Government Agency Obligations		—		3,688,454		—		3,688,454
U.S. Treasury Obligations		—		2,187,071		—		2,187,071
Municipal Bonds		—		1,395,372		—		1,395,372
Investment Fund		684,981		—		—		684,981
							$	42,773,293

See accompanying notes to financial statements.

138

Portfolio of Investments
Touchstone Small Cap Core Fund – March 31, 2011 (Unaudited)

Common Stocks — 98.1%	Shares		Market Value
Financials — 22.9%
Alleghany Corp.*		10,111	$	3,346,625
Eaton Vance Corp.		159,139		5,130,641
First Industrial Realty Trust, Inc. REIT* †		314,512		3,739,548
Hatteras Financial Corp. REIT		147,888		4,158,610
MBIA, Inc.* †		547,265		5,494,541
Montpelier Re Holdings Ltd.		290,501		5,133,153
Tejon Ranch Co.*		151,239		5,556,521
UDR, Inc. REIT		173,292		4,223,126
Wesco Financial Corp.		4,873		1,896,571
White Mountains Insurance Group Ltd.		10,504		3,825,557
				42,504,893
Industrials — 17.4%
Alexander & Baldwin, Inc.		175,952		8,032,209
Corrections Corp. of America*		255,866		6,243,130
Force Protection, Inc.*		482,553		2,364,510
Knoll, Inc.		110,538		2,316,876
Old Dominion Freight Line, Inc.*		199,161		6,988,560
Tredegar Corp.		293,388		6,331,313
				32,276,598
Consumer Discretionary — 15.7%
Cabela's, Inc.*		320,710		8,020,957
Capella Education Co.*		91,275		4,544,582
CarMax, Inc.*		88,121		2,828,684
Hasbro, Inc.		73,798		3,456,698
Service Corp. International		595,614		6,587,491
Sturm Ruger & Co., Inc. †		158,822		3,648,142
				29,086,554
Materials — 10.7%
Albemarle Corp.		128,357		7,671,898
Martin Marietta Materials, Inc. †		39,618		3,552,546
NewMarket Corp.		54,621		8,642,134
				19,866,578
Information Technology — 10.0%
Advent Software, Inc.*		168,987		4,844,857
AOL, Inc.*		194,529		3,799,152
Micrel, Inc.		341,265		4,600,252
ValueClick, Inc.*		369,733		5,346,339
				18,590,600
Consumer Staples — 8.0%
Constellation Brands, Inc. - Class A*		198,737		4,030,386
Energizer Holdings, Inc.*		51,326		3,652,358
Pricesmart, Inc.		195,520		7,163,853
				14,846,597
Energy — 7.6%
Atwood Oceanics, Inc.* †		189,136		8,781,585
Kinder Morgan Management LLC*		79,494		5,214,011
				13,995,596

	Shares		Market Value
Health Care — 5.8%
Owens & Minor, Inc.		109,756	$	3,564,875
QLT, Inc.*		116,659		810,780
Tenet Healthcare Corp.*		851,197		6,341,418
				10,717,073
Total Common Stocks			$	181,884,489
Investment Funds — 11.7%
Invesco Liquid Assets Portfolio **		11,615,827		11,615,827
Touchstone Institutional Money Market Fund^		10,041,108		10,041,108
Total Investment Funds			$	21,656,935
Total Investment Securities — 109.8% (Cost $175,243,143)			$	203,541,424
Liabilities in Excess of Other Assets — (9.8%)				(18,100,435	)
Net Assets — 100.0%			$	185,440,989

*  Non-income producing security.

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $11,368,663.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

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	$	181,884,489	$	—	$	—	$	181,884,489
Investment Funds		21,656,935		—		—		21,656,935
							$	203,541,424

See accompanying notes to financial statements.

139

Portfolio of Investments
Touchstone Small Cap Value Fund – March 31, 2011 (Unaudited)

Common Stocks — 90.9%	Shares		Market Value
Financials — 30.1%
American Assets Trust, Inc. REIT		37,190	$	791,031
Anworth Mortgage Asset Corp. REIT		76,280		540,825
Astoria Financial Corp.		45,919		659,856
BancorpSouth, Inc. †		34,800		537,660
Brandywine Realty Trust REIT		63,900		775,746
Brookline Bancorp, Inc.		72,600		764,478
Capitol Federal Financial, Inc. †		64,905		731,479
Chesapeake Lodging Trust REIT		71,025		1,236,545
Dime Community Bancshares		18,200		268,632
Duff & Phelps Corp. - Class A		60,048		959,567
Flagstone Reinsurance Holdings SA		97,480		878,295
Glacier Bancorp, Inc. †		20,600		310,030
Hancock Holding Co. †		22,900		752,036
Healthcare Realty Trust, Inc. REIT		33,374		757,590
Hercules Technology Growth Capital, Inc.		56,925		626,175
Iberiabank Corp.		16,056		965,447
Medical Properties Trust, Inc. REIT		43,200		499,824
Old National Bancorp		46,700		500,624
Oritani Financial Corp.		32,800		415,904
Potlatch Corp. REIT		29,890		1,201,578
Prosperity Bancshares, Inc.		5,490		234,807
Selective Insurance Group		43,400		750,820
Sterling Bancorp/NY - Class N		50,815		508,658
Symetra Financial Corp.		70,600		960,160
Trustmark Corp.		23,870		559,036
UMB Financial Corp.		20,700		773,249
Washington Federal, Inc.		32,600		565,284
				18,525,336
Industrials — 23.3%
ABM Industries, Inc.		39,725		1,008,618
Aircastle Ltd.		60,900		735,063
Apogee Enterprises, Inc.		53,410		704,478
Barnes Group, Inc.		6,836		142,736
Brady Corp. - Class A		29,300		1,045,717
Briggs & Stratton Corp.		53,975		1,222,534
Curtiss-Wright Corp.		16,925		594,744
Forward Air Corp.		32,720		1,002,214
G&K Services, Inc. - Class A		12,430		413,297
Granite Construction, Inc.		22,000		618,200
Harsco Corp.		22,910		808,494
Kaydon Corp.		18,300		717,177
Knight Transportation, Inc.		71,950		1,385,037
McGrath Rentcorp		26,974		735,581
Otter Tail Corp.		35,100		797,823
Resources Connection, Inc.		35,900		696,101
Skywest, Inc.		57,243		968,552
Universal Forest Products, Inc.		21,200		776,980
				14,373,346
Consumer Discretionary — 10.4%
Bebe Stores, Inc.		129,700		758,745
Chico's FAS, Inc.		41,575		619,467

	Shares		Market Value
Fred's, Inc. - Class A		50,609	$	674,112
Hillenbrand, Inc.		43,800		941,700
Jones Group, Inc. (The)		85,637		1,177,509
MDC Holdings, Inc.		31,980		810,693
Meredith Corp. †		28,375		962,480
Stewart Enterprises, Inc. - Class A		60,050		458,782
				6,403,488
Materials — 8.3%
A Schulman, Inc.		62,500		1,545,000
Commercial Metals Co.		62,200		1,074,194
HB Fuller Co.		45,300		973,044
Olin Corp.		38,500		882,420
Schweitzer-Mauduit International, Inc.		12,190		616,936
				5,091,594
Utilities — 6.5%
Allete, Inc.		28,225		1,099,928
Black Hills Corp.		28,100		939,664
California Water Service Group		22,000		817,740
Portland General Electric Co.		22,550		536,014
UIL Holdings Corp.		13,100		399,812
Vectren Corp.		8,850		240,720
				4,033,878
Information Technology — 4.2%
Cohu, Inc.		38,191		586,614
Intersil Corp. - Class A		107,700		1,340,865
Methode Electronics, Inc.		53,800		649,904
				2,577,383
Energy — 3.4%
Penn Virginia Corp.		75,900		1,287,264
Tsakos Energy Navigation Ltd.		73,200		803,736
				2,091,000
Health Care — 3.1%
Analogic Corp.		2,007		113,496
Owens & Minor, Inc.		25,900		841,232
West Pharmaceutical Services, Inc.		20,750		928,977
				1,883,705
Consumer Staples — 1.6%
Sanderson Farms, Inc. †		16,860		774,211
Tootsie Roll Industries, Inc. †		7,641		216,703
				990,914
Total Common Stocks			$	55,970,644

140

Touchstone Small Cap Value Fund (Continued)

	Shares		Market Value
Investment Funds — 9.0%
Invesco Liquid Assets Portfolio **		3,470,034	$	3,470,034
Touchstone Institutional Money Market Fund^		2,094,999		2,094,999
Total Investment Funds			$	5,565,033
Total Investment Securities — 99.9% (Cost $57,571,077)			$	61,535,677
Other Assets in Excess of Liabilities — 0.1%				66,290
Net Assets — 100.0%			$	61,601,967

^†  All or a portion of the security is on loan. The total value of the securities on loan as of March 31, 2011, was $3,378,189.

**  Represents collateral for securities loaned.

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

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	$	55,970,644	$	—	$	—	$	55,970,644
Investment Funds		5,565,033		—		—		5,565,033
							$	61,535,677

See accompanying notes to financial statements.

141

Portfolio of Investments
Touchstone Ultra Short Duration Fixed Income Fund – March 31, 2011 (Unaudited)

Principal Amount			Market Value
		Commercial Mortgage-Backed Securities — 30.2%
$	1,475,923	American Home Mortgage Investment Trust, Ser 2005-2, Class 5A3, 5.077%, 9/25/35	$	1,489,007
	1,615,000	Banc of America Commercial Mortgage, Inc., Ser 2001-PB1, Class E, 6.228%, 5/11/35		1,628,165
	589,402	Banc of America Commercial Mortgage, Inc., Ser 2005-3, Class ASB, 4.589%, 7/10/43		608,362
	986,900	Banc of America Commercial Mortgage, Inc., Ser 2005-4, Class A2, 4.764%, 7/10/45		987,492
	2,133,109	Banc of America Commercial Mortgage, Inc., Ser 2005-6, Class A2, 5.165%, 9/10/47 (a)		2,132,036
	85,614	Banc of America Mortgage Securities, Inc., Ser 2004-3, Class 1A23, 4.500%, 4/25/34		85,440
	1,562,300	Bear Stearns Commercial Mortgage Securities, Ser 2004-PWR4, Class A2, 5.286%, 6/11/41 (a)		1,630,562
	404,640	Bear Stearns Commercial Mortgage Securities, Ser 2004-PWR5, Class A2, 4.254%, 7/11/42		405,718
	1,284,157	Bear Stearns Commercial Mortgage Securities, Ser 2004-T16, Class A4, 4.320%, 2/13/46		1,291,609
	472,119	Cendant Mortgage Corp., Ser 2002-11P, Class A1, 144a, 5.508%, 2/25/25 (a)		471,451
	773,830	Cendant Mortgage Corp., Ser 2003-7P, Class A2, 144a, 4.869%, 6/25/17 (a)		778,536
	941,345	Cendant Mortgage Corp., Ser 2003-8, Class 2A3, 4.875%, 10/25/33 (a)		944,228
	1,589,872	Cendant Mortgage Corp., Ser 2004-2, Class A1, 4.084%, 5/25/34 (a)		1,592,381
	1,411,370	Chase Mortgage Finance Corp., Ser 2004-S2, Class 2A2, 5.500%, 11/25/14		1,414,664
	688,320	Citicorp Mortgage Securities, Inc., Ser 2003-10, Class A2, 4.500%, 11/25/18		693,713
	1,449,282	Citicorp Mortgage Securities, Inc., Ser 2003-11, Class 1A4, 5.250%, 12/25/33		1,451,443
	1,223,115	Citicorp Mortgage Securities, Inc., Ser 2005-1, Class 1A10, 5.750%, 2/25/35		1,233,081
	89,601	Commercial Mortgage Acceptance Corp., Ser 1999-C1, Class H, 144a, 6.790%, 6/15/31		89,461

Principal Amount			Market Value
$	2,047,920	Commercial Mortgage Asset Trust, Ser 1999-C1, Class A3, 6.640%, 1/17/32	$	2,050,523
	1,675,000	Commercial Mortgage Pass Through Certificates, Ser 2004-LB3A, Class A3, 5.090%, 7/10/37 (a)		1,680,491
	1,174,053	Commercial Mortgage Pass Through Certificates, Ser 2007-FL14, Class A1, 144a, 0.345%, 6/15/22 (a)		1,141,408
	106,395	Countrywide Home Loan Mortgage Pass Through Trust, Ser 2003-24, Class A2, 4.500%, 7/25/33		106,269
	321,111	Countrywide Home Loan Mortgage Pass Through Trust, Ser 2003-J4, Class 1A2, 4.750%, 6/25/33		322,520
	152,245	Credit Suisse First Boston Mortgage Securities Corp., Ser 1997-C2, Class D, 7.270%, 1/17/35		153,336
	1,379,742	Credit Suisse First Boston Mortgage Securities Corp., Ser 1998-C2, Class D, 7.130%, 11/15/30		1,439,028
	1,000,000	Credit Suisse First Boston Mortgage Securities Corp., Ser 2001-CK6, Class B, 6.582%, 8/15/36		1,019,074
	306,066	Credit Suisse First Boston Mortgage Securities Corp., Ser 2003-27, Class 5A1, 5.250%, 11/25/33		306,994
	2,011,176	Credit Suisse First Boston Mortgage Securities Corp., Ser 2004-4, Class 3A9, 5.250%, 8/25/34		2,042,114
	660,545	Credit Suisse First Boston Mortgage Securities Corp., Ser 2004-C3, Class A3, 4.302%, 7/15/36		660,212
	1,000,000	GE Capital Commercial Mortgage Corp., Ser 2001-3, Class B, 6.260%, 6/10/38		1,021,068
	763,275	GE Capital Commercial Mortgage Corp., Ser 2003-C1, Class A3, 4.371%, 1/10/38		766,108
	333,659	GMAC Commercial Mortgage Securities, Inc., Ser 2001-C2, Class A2, 6.700%, 4/15/34		333,342
	1,072,415	GMAC Commercial Mortgage Securities, Inc., Ser 2004-C2, Class A2, 4.760%, 8/10/38		1,075,486
	3,181,049	GMAC Commercial Mortgage Securities, Inc., Ser 2004-C3, Class A3, 4.207%, 12/10/41		3,180,544
	2,683,712	GMAC Mortgage Corp. Loan Trust, Ser 2004-JR1, Class A8, 5.250%, 12/25/14		2,708,214
	852,739	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2002-CIB5, Class A1, 4.372%, 10/12/37		860,800

142

Touchstone Ultra Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		Commercial Mortgage-Backed Securities — 30.2% (Continued)
$	1,146,524	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2003-PM1A, Class A3, 5.169%, 8/12/40 (a)	$	1,185,216
	835,134	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2004-C3, Class A2, 4.223%, 1/15/42		834,812
	1,620,000	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2004-CBX, Class A4, 4.529%, 1/12/37		1,635,552
	1,085,591	JP Morgan Chase Commercial Mortgage Securities Corp., Ser 2004-LN2, Class A1, 4.475%, 7/15/41		1,096,569
	485,478	JP Morgan Commercial Mortgage Finance Corp., Ser 2000-C9, Class G, 144a, 6.250%, 10/15/32		486,312
	693,461	LB Commercial Conduit Mortgage Trust, Ser 1998-C1, Class D, 6.980%, 2/18/30		693,525
	229,256	LB Commercial Conduit Mortgage Trust, Ser 1998-C4, Class F, 144a, 6.000%, 10/15/35		229,425
	852,845	LB-UBS Commercial Mortgage Trust, Ser 2002-C2, Class A3, 5.386%, 6/15/26		859,600
	1,380,551	LB-UBS Commercial Mortgage Trust, Ser 2003-C7, Class A2, 4.064%, 9/15/27 (a)		1,381,012
	1,617,371	LB-UBS Commercial Mortgage Trust, Ser 2003-C8, Class A3, 4.830%, 11/15/27		1,666,363
	1,915,009	LB-UBS Commercial Mortgage Trust, Ser 2005-C2, Class A2, 4.821%, 4/15/30		1,916,130
	2,294,252	LB-UBS Commercial Mortgage Trust, Ser 2005-C7, Class A2, 5.103%, 11/15/30		2,297,674
	465,751	Merrill Lynch / Countrywide Commercial Mortgage Trust, Ser 2006-2, Class A2, 5.878%, 6/12/46 (a)		465,622
	377,830	Merrill Lynch Mortgage Trust, Ser 2003-KEY1, Class A3, 4.893%, 11/12/35		390,167
	1,260,139	Merrill Lynch Mortgage Trust, Ser 2004-BPC1, Class A2, 4.071%, 10/12/41		1,265,832
	2,837,860	PHH Mortgage Capital LLC, Ser 2006-2, Class A2, 6.091%, 7/18/36 (a)		2,858,205

Principal Amount			Market Value
$	1,416,950	PHH Mortgage Capital LLC, Ser 2006-3, Class A4, 5.859%, 10/18/36 (a)	$	1,435,560
	1,257,665	Popular ABS Mortgage Pass-Through Trust, Ser 2006-E, Class A1, 0.340%, 1/25/37 (a)		1,253,480
	120,846	Prudential Mortgage Capital Funding LLC, Ser 2001-ROCK, Class A2, 6.605%, 5/10/34		120,795
	1,922,523	Residential Asset Mortgage Products, Inc., Ser 2003-RZ3, Class A6, 3.400%, 3/25/33		1,914,719
	1,037,114	Residential Funding Mortgage Securities I, Ser 2004-S9, Class 1A6, 5.500%, 12/25/34		1,048,458
	2,857,638	Wachovia Bank Commercial Mortgage Trust, Ser 2003-C8, Class A2, 3.894%, 11/15/35		2,860,369
	533,486	Wachovia Bank Commercial Mortgage Trust, Ser 2003-C9, Class A3, 4.608%, 12/15/35		553,028
	2,300,000	Wachovia Bank Commercial Mortgage Trust, Ser 2004-C11, Class A4, 5.030%, 1/15/41		2,373,670
	530,337	Wachovia Bank Commercial Mortgage Trust, Ser 2004-C12, Class A2, 5.001%, 7/15/41		531,285
	3,155,743	Wachovia Bank Commercial Mortgage Trust, Ser 2005-C17, Class APB, 5.037%, 3/15/42		3,286,929
	933,520	Wells Fargo Mortgage Backed Securities Trust, Ser 2003-11, Class 1A11, 4.750%, 10/25/18		933,035
	989,615	Wells Fargo Mortgage Backed Securities Trust, Ser 2003-17, Class 1A10, 5.250%, 1/25/14		996,840
	2,911,738	Wells Fargo Mortgage Backed Securities Trust, Ser 2003-M, Class A1, 4.694%, 12/25/33 (a)		3,012,566
	453,133	Wells Fargo Mortgage Backed Securities Trust, Ser 2005-3, Class A11, 5.500%, 5/25/35		452,200
	260,170	Wells Fargo Mortgage Backed Securities Trust, Ser 2006-16, Class A12, 5.000%, 11/25/36		260,508
		Total Commercial Mortgage-Backed Securities	$	80,090,338
		U.S. Government Mortgage-Backed Obligations — 26.8%
	502,068	FHLMC, Pool #848088, 2.535%, 4/1/35 (a)		527,778
	778,529	FHLMC, Pool #1L1288, 2.584%, 5/1/36 (a)		808,490

143

Touchstone Ultra Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		U.S. Government Mortgage-Backed Obligations — 26.8% (Continued)
$	325,061	FHLMC, Pool #1H2524, 2.585%, 8/1/35 (a)	$	342,600
	635,941	FHLMC, Pool #847795, 2.591%, 4/1/35 (a)		667,597
	2,235,022	FHLMC, Pool #781515, 2.621%, 4/1/34 (a)		2,318,237
	871,475	FHLMC, Pool #1Q0080, 2.778%, 1/1/36 (a)		915,864
	2,062,787	FHLMC, Pool #1Q0187, 2.888%, 12/1/36 (a)		2,177,835
	1,335,779	FHLMC, Pool #1B7189, 3.487%, 3/1/36 (a)		1,405,203
	1,950,482	FHLMC, Pool #J10895, 4.000%, 10/1/19		2,040,387
	1,073,012	FHLMC, Pool #1L0087, 5.044%, 6/1/35 (a)		1,141,270
	799,609	FHLMC, Pool #1Q0669, 5.235%, 11/1/37 (a)		838,818
	678,500	FHLMC, Pool #1G1471, 5.435%, 1/1/37 (a)		715,218
	1,124,818	FHLMC, Pool #1J1813, 5.745%, 8/1/37 (a)		1,197,811
	854,716	FHLMC, Pool #1K1238, 5.792%, 7/1/36 (a)		890,404
	1,679,197	FHLMC, Pool #1Q0119, 5.827%, 9/1/36 (a)		1,764,724
	2,843	FHLMC, Pool #E64944, 7.000%, 7/1/11		2,889
	116,180	FHLMC, Pool #G11072, 7.500%, 12/1/15		127,052
	1,931,996	FHLMC REMICS, Ser 2770, Class FH, 0.655%, 3/15/34 (a)		1,931,993
	1,653,186	FHLMC REMICS, Ser 2571, Class FN, 0.905%, 8/15/32 (a)		1,658,549
	711,201	FHLMC REMICS, Ser 2628, Class BG, 3.500%, 7/15/16		717,915
	339,775	FHLMC REMICS, Ser 2611, Class KC, 3.500%, 1/15/17		341,307
	642,479	FHLMC REMICS, Ser 2590, Class UL, 3.750%, 3/15/32		670,673
	122,445	FHLMC REMICS, Ser 2682, Class HG, 4.000%, 4/15/17		124,081
	693,288	FHLMC REMICS, Ser 2594, Class YA, 4.000%, 4/15/23		728,464
	555,873	FHLMC REMICS, Ser 2586, Class WA, 4.000%, 12/15/32		577,686
	420,200	FHLMC REMICS, Ser 2833, Class NA, 4.500%, 5/15/17		424,843
	294,340	FHLMC REMICS, Ser 2575, Class LM, 4.500%, 5/15/32		305,302
	186,828	FHLMC REMICS, Ser 2904, Class CM, 5.000%, 1/15/18		189,211

Principal Amount			Market Value
$	702,740	FHLMC REMICS, Ser 2904, Class CA, 5.000%, 4/15/19	$	736,074
	186,109	FHLMC REMICS, Ser 3196, Class PA, 5.250%, 8/15/11		186,806
	449,685	FHLMC REMICS, Ser 3215, Class EP, 5.375%, 9/15/11		455,139
	225,303	FHLMC REMICS, Ser 3197, Class AB, 5.500%, 8/15/13		230,556
	811,952	FHLMC REMICS, Ser 3104, Class BA, 5.500%, 6/15/24		859,696
	154,129	FHLMC REMICS, Ser 3178, Class PA, 5.500%, 10/15/27		154,777
	894,611	FHLMC REMICS, Ser 3242, Class NC, 5.750%, 12/15/28		909,367
	924,333	FNMA, Pool #810896, 2.028%, 1/1/35 (a)		966,228
	4,023,638	FNMA, Pool #813844, 2.039%, 1/1/35 (a)		4,201,755
	334,140	FNMA, Pool #784365, 2.050%, 5/1/34 (a)		346,854
	1,871,038	FNMA, Pool #827787, 2.054%, 5/1/35 (a)		1,945,990
	475,536	FNMA, Pool #806765, 2.082%, 11/1/34 (a)		495,208
	871,745	FNMA, Pool #813714, 2.206%, 1/1/35 (a)		905,094
	242,110	FNMA, Pool #681842, 2.375%, 2/1/33 (a)		252,808
	220,234	FNMA, Pool #809897, 2.397%, 3/1/35 (a)		230,234
	498,453	FNMA, Pool #813170, 2.450%, 1/1/35 (a)		522,482
	664,821	FNMA, Pool #725245, 2.462%, 2/1/34 (a)		698,141
	270,243	FNMA, Pool #804001, 2.466%, 10/1/34 (a)		284,153
	635,930	FNMA, Pool #681898, 2.482%, 4/1/33 (a)		666,161
	401,621	FNMA, Pool #735539, 2.556%, 4/1/35 (a)		421,953
	285,883	FNMA, Pool #743207, 2.572%, 10/1/33 (a)		299,874
	370,472	FNMA, Pool #1B2629, 2.612%, 11/1/34 (a)		388,185
	325,270	FNMA, Pool #828480, 2.708%, 6/1/35 (a)		340,995
	2,633,612	FNMA, Pool #825395, 2.717%, 7/1/35 (a)		2,763,305
	1,960,431	FNMA, Pool #922674, 2.769%, 4/1/36 (a)		2,062,582
	725,269	FNMA, Pool #679742, 3.082%, 1/1/40 (a)		759,234
	208,532	FNMA, Pool #888548, 3.623%, 5/1/35 (a)		218,606

144

Touchstone Ultra Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		U.S. Government Mortgage-Backed Obligations — 26.8% (Continued)
$	3,705,030	FNMA, Pool #AE0727, 4.000%, 10/1/20	$	3,881,804
	1,381,220	FNMA, Pool #839239, 4.939%, 9/1/35 (a)		1,463,579
	819,946	FNMA, Pool #745790, 5.042%, 8/1/36 (a)		872,611
	488,629	FNMA, Pool #888179, 5.214%, 2/1/37 (a)		512,712
	1,002,292	FNMA, Pool #995284, 5.500%, 3/1/20		1,087,116
	378,221	FNMA, Pool #745467, 5.628%, 4/1/36 (a)		405,430
	451,479	FNMA, Pool #950385, 5.779%, 8/1/37 (a)		481,602
	1,656,780	FNMA, Pool #735439, 6.000%, 9/1/19		1,807,444
	48,718	FNMA, Pool #519992, 7.000%, 10/1/14		53,010
	50,768	FNMA, Pool #535219, 7.500%, 3/1/15		55,727
	35,191	FNMA, Pool #534851, 7.500%, 4/1/15		38,629
	216,046	FNMA, Pool #555646, 7.500%, 9/1/16		232,328
	130	FNMA, Pool #535635, 8.500%, 6/1/12		134
	2,575,496	FNMA REMICS, Ser 2003-81, Class FE, 0.750%, 9/25/33 (a)		2,585,202
	1,496,310	FNMA REMICS, Ser 2004-96, Class LF, 1.250%, 12/25/34 (a)		1,505,973
	117,910	FNMA REMICS, Ser 2003-34, Class AD, 4.000%, 1/25/32		119,386
	305,932	FNMA REMICS, Ser 2003-19, Class ME, 4.000%, 1/25/33		318,753
	528,420	FNMA REMICS, Ser 2003-33, Class AU, 4.000%, 3/25/33		551,447
	864,748	FNMA REMICS, Ser 2003-119, Class PU, 4.000%, 11/25/33		902,277
	402,434	FNMA REMICS, Ser 2003-33, Class AM, 4.250%, 5/25/33		423,098
	195,428	FNMA REMICS, Ser 2003-81, Class NY, 4.500%, 9/25/16		198,508
	191,111	FNMA REMICS, Ser 2003-25, Class CE, 4.500%, 3/25/17		192,901
	1,926,210	FNMA REMICS, Ser 2008-35, Class IO, 4.500%, 4/25/23 (b)		164,860
	655,515	FNMA REMICS, Ser 2008-95, Class AD, 4.500%, 12/25/23		691,862
	380,528	FNMA REMICS, Ser 2003-129, Class PW, 4.500%, 7/25/33		391,947
	176,835	FNMA REMICS, Ser 2006-26, Class QA, 5.500%, 6/25/26		176,965

Principal Amount			Market Value
$	65,429	FNMA REMICS, Ser 2006-2, Class GH, 5.500%, 6/25/32	$	65,702
	412,958	FNMA REMICS, Ser 2007-9, Class YA, 5.500%, 3/25/37		412,949
	788,836	GNMA, Pool #G2 80889, 2.000%, 4/20/34 (a)		813,354
	1,100,170	GNMA, Pool #G2 81016, 2.625%, 8/20/34 (a)		1,135,970
	49,365	GNMA, Pool #G2 8366, 3.375%, 6/20/18 (a)		51,338
	3,496	GNMA, Pool #G2 8462, 3.375%, 2/20/19 (a)		3,643
	1,709	GNMA, Pool #G2 8404, 3.500%, 9/20/18 (a)		1,773
	1,235,018	GNMA, Pool #G2 80826, 3.500%, 2/20/34 (a)		1,288,637
	15,629	GNMA, Pool #G2 8103, 4.000%, 2/20/16 (a)		16,346
	26,550	GNMA, Pool #G2 8287, 4.000%, 11/20/17 (a)		27,738
	30,868	GNMA, Pool #G2 8297, 4.000%, 12/20/17 (a)		32,249
	56,474	GNMA, Pool #G2 8333, 4.000%, 3/20/18 (a)		59,067
	34,187	GNMA, Pool #G2 8345, 4.000%, 4/20/18 (a)		35,643
	19,695	GNMA, Pool #G2 8405, 4.000%, 9/20/18 (a)		20,487
	19,356	GNMA, Pool #G2 8489, 4.000%, 4/20/19 (a)		20,180
		Total U.S. Government Mortgage-Backed Obligations	$	70,954,839
		Corporate Bonds — 15.8% Financials — 9.7%
	1,235,000	American Express Bank FSB, 5.500%, 4/16/13		1,324,586
	2,000,000	American Express Centurion Bank, 5.550%, 10/17/12		2,119,466
	1,650,000	Bank of America Corp., 5.375%, 9/11/12		1,737,394
	2,000,000	Bear Stearns Cos. LLC, 6.950%, 8/10/12		2,153,208
	1,371,000	BNP Paribas / BNP Paribas US MTN Program LLC, Ser 2, 2.125%, 12/21/12		1,389,211
	2,000,000	Countrywide Financial Corp. MTN, 5.800%, 6/7/12		2,103,720
	1,240,000	Credit Suisse, 3.450%, 7/2/12		1,277,635
	1,599,000	Deutsche Bank AG, 5.375%, 10/12/12		1,696,590
	1,415,000	Devin F & Janis L McCarthy, Ser 1997, 0.750%, 7/2/17 (a)		1,415,000
	22,000	General Electric Capital Corp., 5.000%, 4/10/12		22,954
	2,000,000	General Electric Capital Corp. MTN, 6.000%, 6/15/12		2,117,870
	2,378,000	HSBC Finance Corp., 7.000%, 5/15/12		2,529,188

145

Touchstone Ultra Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		Corporate Bonds — 15.8% (Continued)
$	500,000	JP Morgan Chase & Co., 5.375%, 10/1/12	$	530,992
	500,000	JPMorgan Chase & Co., 5.750%, 1/2/13		534,536
	2,650,000	Metropolitan Life Global Funding I, 144a, 2.875%, 9/17/12		2,702,306
	500,000	Northern Trust Corp., 5.200%, 11/9/12		534,862
	635,000	WCI Finance LLC / WEA Finance LLC, 144a, 5.400%, 10/1/12		671,860
	750,000	Wells Fargo Financial, Inc., 5.500%, 8/1/12		794,753
				25,656,131
		Utilities — 2.2%
	3,795,000	KCP&L Greater Missouri Operations Co., 11.875%, 7/1/12		4,233,254
	1,000,000	MidAmerican Energy Co., 5.650%, 7/15/12		1,055,516
	500,000	TransCanada PipeLines Ltd., 8.625%, 5/15/12		542,101
				5,830,871
		Consumer Discretionary — 1.5%
	700,000	Cintas Corp. No 2, 6.000%, 6/1/12		736,265
	3,000,000	Reed Elsevier Capital, Inc., 4.625%, 6/15/12		3,109,488
				3,845,753
		Energy — 1.2%
	3,000,000	Valero Energy Corp., 4.750%, 6/15/13		3,184,740
		Industrials — 0.8%
	2,000,000	Allied Waste North America, Inc., 6.875%, 6/1/17		2,180,000
		Consumer Staples — 0.4%
	1,015,000	Laurel Grocery Co. LLC, Ser 1999, 0.750%, 12/1/14 (a)		1,015,000
		Total Corporate Bonds	$	41,712,495
		Asset-Backed Securities — 14.0%
	270,540	AmeriCredit Automobile Receivables Trust, Ser 2008-AF, Class A3, 5.680%, 12/12/12		272,194
	591,301	Bank of America Auto Trust, Ser 2008-1A, Class A3A, 144a, 4.970%, 9/20/12		597,312
	1,508,388	Bank of America Auto Trust, Ser 2009-1A, Class A3, 144a, 2.670%, 7/15/13		1,521,923
	1,000,000	Bank of America Auto Trust, Ser 2010-1A, Class A3, 144a, 1.390%, 3/15/14		1,005,603

Principal Amount			Market Value
$	546,925	BCRR Trust, Ser 2010-LEAF, Class 22A, 144a, 4.230%, 9/22/35	$	546,670
	1,293,991	BCRR Trust, Ser 2010-LEAF, Class 42A, 144a, 4.230%, 7/22/33		1,296,817
	3,700,000	BCRR Trust, Ser 2010-LEAF, Class 4A, 144a, 4.230%, 4/22/36		3,696,698
	1,041,739	Capital One Prime Auto Receivables Trust, Ser 2007-2, Class A4, 5.060%, 6/15/14		1,054,724
	1,647,938	Chrysler Financial Auto Securitization Trust, Ser 2009-A, Class A3, 2.820%, 1/15/16		1,670,874
	413,295	First Horizon Asset Securities, Inc., Ser 2003-3, Class 1A2, 4.200%, 5/25/33		413,790
	209,453	First Union-Lehman Brothers-Bank of America, Ser 1998-C2, Class C, 6.730%, 11/18/35		209,294
	2,500,000	Ford Credit Auto Owner Trust, Ser 2007-B, Class B, 5.690%, 11/15/12		2,587,113
	199,646	Ford Credit Auto Owner Trust, Ser 2008-A, Class A3A, 3.960%, 4/15/12		200,472
	1,169,343	Greenwich Capital Commercial Funding Corp., Ser 2003-C2, Class A3, 4.533%, 1/5/36		1,191,677
	1,265,000	Harley-Davidson Motorcycle Trust, Ser 2009-3, Class A3, 1.740%, 9/15/13		1,273,107
	1,721,843	Household Automotive Trust, Ser 2007-1, Class A4, 5.330%, 11/17/13		1,725,489
	3,706,360	LAI Vehicle Lease Securitization Trust, Ser 2010-A, Class A, 144a, 2.550%, 9/15/16		3,696,227
	113,340	Madison Avenue Manufactured Housing Contract, Ser 2002-A, Class A1, 0.600%, 3/25/32 (a)		113,250
	349,014	MASTR Alternative Loans Trust, Ser 2003-3, Class 2A1, 8.500%, 5/25/33		362,700
	62,454	MASTR Asset Securitization Trust, Ser 2004-4, Class 2A2, 0.700%, 4/25/34 (a)		62,286
	1,797,750	Morgan Stanley Dean Witter Capital I, Ser 2001-TOP3, Class A4, 6.390%, 7/15/33		1,803,144
	2,010,601	Nissan Auto Lease Trust, Ser 2009-A, Class A3, 2.920%, 12/15/11		2,015,025
	802,129	Residential Accredit Loans, Inc., Ser 2003-QS10, Class A7, 5.500%, 5/25/33		837,958
	2,042,170	Residential Accredit Loans, Inc., Ser 2003-QS14, Class A1, 5.000%, 7/25/18		2,109,000

146

Touchstone Ultra Short Duration Fixed Income Fund (Continued)

Principal Amount			Market Value
		Asset-Backed Securities — 14.0% (Continued)
$	2,173,462	Residential Asset Securitization Trust, Ser 2003-A8, Class A1, 3.750%, 10/25/18	$	2,206,929
	2,185,282	Santander Drive Auto Receivables Trust, Ser 2010-1, Class A2, 1.360%, 3/15/13		2,191,368
	650,593	Structured Asset Investment Loan Trust, Ser 2005-1, Class A5, 144a, 0.600%, 2/25/35 (a)		642,019
	327,813	Wells Fargo Home Equity Trust, Ser 2006-1, Class A3, 0.400%, 5/25/36 (a)		324,054
	378,444	World Omni Auto Receivables Trust, Ser 2007-A, Class A4, 0.255%, 11/15/12 (a)		378,057
	1,144,322	World Omni Auto Receivables Trust, Ser 2007-B, Class A4, 5.390%, 5/15/13		1,169,678
		Total Asset-Backed Securities	$	37,175,452
		Municipal Bonds — 4.0% Alabama — 1.1%
	3,000,000	Chatom IDB Rev, Ser 2007 Class A 1.200%, 8/1/11 (a)		3,000,060
		New Mexico — 0.7%
	1,835,000	NM Edl Asst Rev, Ser 2010 A-2 (Gtd St Lns) 0.959%, 6/22/11 (a)		1,814,815
		Ohio — 1.1%
	1,170,000	Hamilton Co OH Rev, Ser 1998 G Class G (NATL-RE) 5.250%, 5/15/11		1,173,802
	1,750,000	Medina Co OH IDR (Mack Inds), Ser 1998 (LOC: JP Morgan Chase Bank) 0.400%, 4/10/11 (a)		1,750,000
				2,923,802
		Pennsylvania — 1.1%
	2,750,000	Commonwealth Fing Auth. PA Rev, Ser A 3.860%, 6/1/11		2,762,238
		Total Municipal Bonds	$	10,500,915
		U.S. Government Agency Obligations — 3.5%
	2,000,000	FNMA, 1.050%, 10/22/13		1,989,702
	7,200,000	Overseas Private Investment Corp., Ser B, 0.240%, 3/15/17 (a)		7,200,000
		Total U.S. Government Agency Obligations	$	9,189,702

Shares			Market Value
		Investment Fund — 5.8%
$	15,373,006	Touchstone Institutional Money Market Fund^	$	15,373,006
		Total Investment Securities — 100.1% (Cost $264,740,826)	$	264,996,747
		Liabilities in Excess of Other Assets — (0.1%)		(220,298	)
		Net Assets — 100.0%	$	264,776,449

^(a)  Variable rate security - the rate reflected is the rate in effect as of March 31, 2011.

^(b)  IO - Interest Only

^  Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.

Portfolio Abbreviations:

FHLMC – Federal Home Loan Mortgage Corp.

FNMA – Federal National Mortgage Association

GNMA – Government National Mortgage Association

IDB – Industrial Development Bond

IDR – Industrial Development Revenue

LOC – Letter of Credit

MTN – Medium Term Note

REMIC – Real Estate Mortgage Investment Conduit

144a – This is a restricted security that was sold in a transaction exempt from Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2011, these securities were valued at $19,574,028 or 7.4% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

147

Touchstone Ultra Short Duration Fixed Income Fund (Continued)

Other Information:

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

Valuation Inputs at Reporting Date:

Description	Level 1		Level 2		Level 3		Total
Commercial Mortgage-Backed Securities	$	—	$	80,090,338	$	—	$	80,090,338
U.S. Government Mortgage-Backed Obligations		—		70,954,839		—		70,954,839
Corporate Bonds		—		41,712,495		—		41,712,495
Asset-Backed Securities		—		37,175,452		—		37,175,452
Investment Fund		15,373,006		—		—		15,373,006
Municipal Bonds		—		10,500,915		—		10,500,915
U.S. Government Agency Obligations		—		9,189,702		—		9,189,702
							$	264,996,747

See accompanying notes to financial statements.

148

Other Items (Unaudited)

Proxy Voting

The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility and information regarding how those proxies were voted during the twelve month period ended June 30 are available without charge upon request by calling toll free 1.800.543.0407. These items are also available on the Securities and Exchange Commission's (the Commission) website at http://www.sec.gov.

Quarterly Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission's website; (ii) may be reviewed and copied at the Commission's Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1.800.543.0407. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Schedule of Shareholder Expenses

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions; and (2) ongoing costs, including investment advisory fees; 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 (October 1, 2010 through March 31, 2011).

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During the Six Months Ended March 31, 2011" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

149

Other Items (Continued)

Schedule of Shareholder Expenses (Continued)

	Net Expense Ratio Annualized March 31, 2011			Beginning Account Value October 1, 2010		Ending Account Value March 31, 2011		Expenses Paid During the Six Months Ended March 31, 2011*
Touchstone Capital Appreciation Fund
Class A Actual		1.19	%	$	1,000.00	$	1,114.10	$	6.27
Class A Hypothetical		1.19	%	$	1,000.00	$	1,019.00	$	5.99
Class C Actual		1.94	%	$	1,000.00	$	1,110.90	$	10.21
Class C Hypothetical		1.94	%	$	1,000.00	$	1,015.26	$	9.75
Class Y Actual		0.94	%	$	1,000.00	$	1,116.10	$	4.96
Class Y Hypothetical		0.94	%	$	1,000.00	$	1,020.24	$	4.73
Institutional Class Actual		0.79	%	$	1,000.00	$	1,116.90	$	4.17
Institutional Class Hypothetical		0.79	%	$	1,000.00	$	1,020.99	$	3.98
Touchstone Core Plus Fixed Income Fund
Class A Actual		0.95	%	$	1,000.00	$	1,010.40	$	4.76
Class A Hypothetical		0.95	%	$	1,000.00	$	1,020.19	$	4.78
Class C Actual		1.70	%	$	1,000.00	$	1,006.20	$	8.50
Class C Hypothetical		1.70	%	$	1,000.00	$	1,016.45	$	8.55
Class Y Actual		0.70	%	$	1,000.00	$	1,011.60	$	3.51
Class Y Hypothetical		0.70	%	$	1,000.00	$	1,021.44	$	3.53
Institutional Class Actual		0.50	%	$	1,000.00	$	1,012.60	$	2.51
Institutional Class Hypothetical		0.50	%	$	1,000.00	$	1,022.44	$	2.52
Touchstone Emerging Markets Equity Fund
Class A Actual		1.74	%	$	1,000.00	$	1,030.60	$	8.81
Class A Hypothetical		1.74	%	$	1,000.00	$	1,016.26	$	8.75
Class C Actual		2.49	%	$	1,000.00	$	1,026.40	$	12.58
Class C Hypothetical		2.49	%	$	1,000.00	$	1,012.52	$	12.49
Class Y Actual		1.43	%	$	1,000.00	$	1,032.60	$	7.25
Class Y Hypothetical		1.43	%	$	1,000.00	$	1,017.80	$	7.19
Institutional Class Actual		1.34	%	$	1,000.00	$	1,031.90	$	6.79
Institutional Class Hypothetical		1.34	%	$	1,000.00	$	1,018.25	$	6.74
Touchstone Focused Equity Fund
Class A Actual		1.20	%	$	1,000.00	$	1,178.00	$	6.52
Class A Hypothetical		1.20	%	$	1,000.00	$	1,018.95	$	6.04
Class C Actual		1.95	%	$	1,000.00	$	1,171.90	$	10.56
Class C Hypothetical		1.95	%	$	1,000.00	$	1,015.21	$	9.80
Class Y Actual		0.95	%	$	1,000.00	$	1,179.20	$	5.16
Class Y Hypothetical		0.95	%	$	1,000.00	$	1,020.19	$	4.78
Institutional Class Actual		0.80	%	$	1,000.00	$	1,180.20	$	4.35
Institutional Class Hypothetical		0.80	%	$	1,000.00	$	1,020.94	$	4.03

150

Other Items (Continued)

Schedule of Shareholder Expenses (Continued)

	Net Expense Ratio Annualized March 31, 2011			Beginning Account Value October 1, 2010		Ending Account Value March 31, 2011		Expenses Paid During the Six Months Ended March 31, 2011*
Touchstone Global Equity Fund
Class A Actual		1.34	%	$	1,000.00	$	1,094.00	$	7.00
Class A Hypothetical		1.34	%	$	1,000.00	$	1,018.25	$	6.74
Class C Actual		2.09	%	$	1,000.00	$	1,090.20	$	10.89
Class C Hypothetical		2.09	%	$	1,000.00	$	1,014.51	$	10.50
Class Y Actual		1.09	%	$	1,000.00	$	1,095.60	$	5.69
Class Y Hypothetical		1.09	%	$	1,000.00	$	1,019.50	$	5.49
Institutional Class Actual		0.94	%	$	1,000.00	$	1,095.40	$	4.91
Institutional Class Hypothetical		0.94	%	$	1,000.00	$	1,020.24	$	4.73
Touchstone Global Real Estate Fund
Class A Actual		1.39	%	$	1,000.00	$	1,086.00	$	7.23
Class A Hypothetical		1.39	%	$	1,000.00	$	1,018.00	$	6.99
Class C Actual		2.14	%	$	1,000.00	$	1,081.60	$	11.11
Class C Hypothetical		2.14	%	$	1,000.00	$	1,014.26	$	10.75
Class Y Actual		1.14	%	$	1,000.00	$	1,087.60	$	5.93
Class Y Hypothetical		1.14	%	$	1,000.00	$	1,019.25	$	5.74
Institutional Class Actual		0.99	%	$	1,000.00	$	1,087.90	$	5.15
Institutional Class Hypothetical		0.99	%	$	1,000.00	$	1,020.00	$	4.99
Touchstone Healthcare and Biotechnology Fund
Class A Actual		1.55	%	$	1,000.00	$	1,213.50	$	8.55
Class A Hypothetical		1.55	%	$	1,000.00	$	1,017.20	$	7.80
Class C Actual		2.30	%	$	1,000.00	$	1,209.00	$	12.67
Class C Hypothetical		2.30	%	$	1,000.00	$	1,013.46	$	11.55
Touchstone Intermediate Fixed Income Fund
Institutional Class Actual		0.40	%	$	1,000.00	$	991.00	$	1.99
Institutional Class Hypothetical		0.40	%	$	1,000.00	$	1,022.94	$	2.02
Touchstone International Fixed Income Fund
Class A Actual		1.09	%	$	1,000.00	$	997.70	$	5.43
Class A Hypothetical		1.09	%	$	1,000.00	$	1,019.50	$	5.49
Class C Actual		1.84	%	$	1,000.00	$	994.00	$	9.15
Class C Hypothetical		1.84	%	$	1,000.00	$	1,015.76	$	9.25
Class Y Actual		0.84	%	$	1,000.00	$	999.20	$	4.19
Class Y Hypothetical		0.84	%	$	1,000.00	$	1,020.74	$	4.23
Institutional Class Actual		0.69	%	$	1,000.00	$	999.90	$	3.44
Institutional Class Hypothetical		0.69	%	$	1,000.00	$	1,021.49	$	3.48

151

Other Items (Continued)

Schedule of Shareholder Expenses (Continued)

	Net Expense Ratio Annualized March 31, 2011			Beginning Account Value October 1, 2010		Ending Account Value March 31, 2011		Expenses Paid During the Six Months Ended March 31, 2011*
Touchstone Large Cap Relative Value Fund
Class A Actual		1.19	%	$	1,000.00	$	1,184.50	$	6.48
Class A Hypothetical		1.19	%	$	1,000.00	$	1,019.00	$	5.99
Class C Actual		1.94	%	$	1,000.00	$	1,181.40	$	10.55
Class C Hypothetical		1.94	%	$	1,000.00	$	1,015.26	$	9.75
Class Y Actual		0.94	%	$	1,000.00	$	1,187.00	$	5.13
Class Y Hypothetical		0.94	%	$	1,000.00	$	1,020.24	$	4.73
Institutional Class Actual		0.79	%	$	1,000.00	$	1,187.50	$	4.31
Institutional Class Hypothetical		0.79	%	$	1,000.00	$	1,020.99	$	3.98
Touchstone Market Neutral Equity Fund
Class A Actual		2.75	%	$	1,000.00	$	976.40	$	13.55
Class A Hypothetical		2.75	%	$	1,000.00	$	1,011.22	$	13.79
Class C Actual		3.60	%	$	1,000.00	$	973.10	$	17.71
Class C Hypothetical		3.60	%	$	1,000.00	$	1,006.98	$	18.01
Class Y Actual		2.60	%	$	1,000.00	$	978.50	$	12.83
Class Y Hypothetical		2.60	%	$	1,000.00	$	1,011.97	$	13.04
Touchstone Mid Cap Fund
Class A Actual		1.21	%	$	1,000.00	$	1,236.00	$	6.75
Class A Hypothetical		1.21	%	$	1,000.00	$	1,018.90	$	6.09
Class C Actual		1.96	%	$	1,000.00	$	1,231.30	$	10.90
Class C Hypothetical		1.96	%	$	1,000.00	$	1,015.16	$	9.85
Class Y Actual		0.96	%	$	1,000.00	$	1,237.00	$	5.35
Class Y Hypothetical		0.96	%	$	1,000.00	$	1,020.14	$	4.84
Class Z Actual		1.21	%	$	1,000.00	$	1,235.90	$	6.75
Class Z Hypothetical		1.21	%	$	1,000.00	$	1,018.90	$	6.09
Touchstone Mid Cap Value Fund
Class A Actual		1.29	%	$	1,000.00	$	1,205.40	$	7.09
Class A Hypothetical		1.29	%	$	1,000.00	$	1,018.50	$	6.49
Class C Actual		2.04	%	$	1,000.00	$	1,200.60	$	11.19
Class C Hypothetical		2.04	%	$	1,000.00	$	1,014.76	$	10.25
Class Y Actual		1.04	%	$	1,000.00	$	1,206.80	$	5.72
Class Y Hypothetical		1.04	%	$	1,000.00	$	1,019.75	$	5.24
Institutional Class Actual		0.89	%	$	1,000.00	$	1,207.90	$	4.90
Institutional Class Hypothetical		0.89	%	$	1,000.00	$	1,020.49	$	4.48

152

Other Items (Continued)

Schedule of Shareholder Expenses (Continued)

	Net Expense Ratio Annualized March 31, 2011			Beginning Account Value October 1, 2010		Ending Account Value March 31, 2011		Expenses Paid During the Six Months Ended March 31, 2011*
Touchstone Premium Yield Equity Fund
Class A Actual		1.20	%	$	1,000.00	$	1,127.60	$	6.37
Class A Hypothetical		1.20	%	$	1,000.00	$	1,018.95	$	6.04
Class C Actual		1.95	%	$	1,000.00	$	1,120.80	$	10.31
Class C Hypothetical		1.95	%	$	1,000.00	$	1,015.21	$	9.80
Class Y Actual		0.95	%	$	1,000.00	$	1,127.40	$	5.04
Class Y Hypothetical		0.95	%	$	1,000.00	$	1,020.19	$	4.78
Touchstone Sands Capital Select Growth Fund
Class A Actual		1.42	%	$	1,000.00	$	1,111.80	$	5.59
Class A Hypothetical		1.42	%	$	1,000.00	$	1,013.34	$	5.33
Class C Actual		2.16	%	$	1,000.00	$	1,109.70	$	8.49
Class C Hypothetical		2.16	%	$	1,000.00	$	1,010.58	$	8.09
Class Y Actual		1.20	%	$	1,000.00	$	1,200.20	$	6.58
Class Y Hypothetical		1.20	%	$	1,000.00	$	1,018.95	$	6.04
Class Z Actual		1.42	%	$	1,000.00	$	1,200.00	$	7.79
Class Z Hypothetical		1.42	%	$	1,000.00	$	1,024.93	$	7.17
Touchstone Short Duration Fixed Income Fund
Class Y Actual		0.49	%	$	1,000.00	$	1,003.20	$	2.45
Class Y Hypothetical		0.49	%	$	1,000.00	$	1,022.49	$	2.47
Class Z Actual		0.74	%	$	1,000.00	$	1,003.00	$	3.70
Class Z Hypothetical		0.74	%	$	1,000.00	$	1,021.24	$	3.73
Touchstone Small Cap Core Fund
Class A Actual		1.34	%	$	1,000.00	$	1,198.70	$	7.35
Class A Hypothetical		1.34	%	$	1,000.00	$	1,018.25	$	6.74
Class C Actual		2.09	%	$	1,000.00	$	1,194.00	$	11.43
Class C Hypothetical		2.09	%	$	1,000.00	$	1,014.51	$	10.50
Class Y Actual		1.09	%	$	1,000.00	$	1,199.70	$	5.98
Class Y Hypothetical		1.09	%	$	1,000.00	$	1,019.50	$	5.49
Institutional Class Actual		0.94	%	$	1,000.00	$	1,200.30	$	5.16
Institutional Class Hypothetical		0.94	%	$	1,000.00	$	1,020.24	$	4.73

153

Other Items (Continued)

Schedule of Shareholder Expenses (Continued)

	Net Expense Ratio Annualized March 31, 2011			Beginning Account Value October 1, 2010		Ending Account Value March 31, 2011		Expenses Paid During the Six Months Ended March 31, 2011*
Touchstone Small Cap Value Fund
Class A Actual		1.41	%	$	1,000.00	$	1,030.40	$	1.18
Class A Hypothetical		1.41	%	$	1,000.00	$	1,002.95	$	1.16
Class C Actual		2.18	%	$	1,000.00	$	1,029.40	$	1.82
Class C Hypothetical		2.18	%	$	1,000.00	$	1,002.32	$	1.79
Class Y Actual		1.18	%	$	1,000.00	$	1,030.60	$	0.98
Class Y Hypothetical		1.18	%	$	1,000.00	$	1,003.14	$	0.97
Class Z Actual		1.50	%	$	1,000.00	$	1,203.70	$	8.24
Class Z Hypothetical		1.50	%	$	1,000.00	$	1,017.45	$	7.54
Institutional Class Actual		1.03	%	$	1,000.00	$	1,030.70	$	0.86
Institutional Class Hypothetical		1.03	%	$	1,000.00	$	1,003.26	$	1.24
Touchstone Ultra Short Duration Fixed Income Fund
Class Z Actual		0.64	%	$	1,000.00	$	1,004.40	$	3.20
Class Z Hypothetical		0.64	%	$	1,000.00	$	1,021.74	$	3.23

*  Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by [number of days in most recent fiscal half-year/365 [or 366]] (to reflect one-half year period).

154

Other Items (Continued)

Annual Renewal of Investment Advisory and Sub-Advisory Agreements

Advisory Agreement Approval Disclosure

At a meeting held on November 18, 2010, the Board of Trustees (the "Board" or "Trustees") of the Touchstone Funds Group Trust (the "Trust"), and by a separate vote, the Independent Trustees of the Trust, approved the continuance of the Investment Advisory Agreement between the Trust and the Advisor with respect to each Fund of the Trust and of the Sub-Advisory Agreement with respect to each Fund between the Advisor and the respective Sub-Advisor.

In determining whether to approve the Investment Advisory Agreement and the Sub-Advisory Agreements, the Advisor furnished information necessary for a majority of the Independent Trustees to make the determination that the continuance of the Investment Advisory Agreement and of the respective Sub-Advisory Agreement was in the best interests of each of the Funds and its respective shareholders. The information provided to the Board included: (1) industry data comparing advisory fees and expense ratios of comparable investment companies; (2) comparative performance information; (3) the Advisor's and its affiliates' revenues and costs of providing services to the Funds; and (4) information about the Advisor's and Sub-Advisors' personnel. Prior to voting, the Independent Trustees reviewed the proposed continuance of the Investment Advisory Agreement and the Sub-Advisory Agreements with management and with experienced independent legal counsel and received materials from such counsel discussing the legal standards for their consideration of the proposed continuation of the Investment Advisory Agreement and the Sub-Advisory Agreement with respect to each Fund. The Independent Trustees also reviewed the proposed continuation of the Investment Advisory Agreement and the Sub-Advisory Agreement with respect to each of the Funds in private sessions with independent legal counsel at which no representatives of management were present.

In approving the Funds' Investment Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services provided to the Funds, including the personnel providing services; (2) the Advisor's compensation and profitability; (3) a comparison of fees and performance with other advisers; (4) economies of scale; and (5) the terms of the Investment Advisory Agreement. The Board's analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Advisor Services. The Board considered the level and depth of knowledge of the Advisor, including the professional experience and qualifications of senior personnel. The Board discussed the Advisor's effectiveness in monitoring the performance of each Sub-Advisor, including those that were affiliates of the Advisor, and the Advisor's timeliness in responding to performance issues. In evaluating the quality of services provided by the Advisor, the Board took into account its familiarity with the Advisor's senior management through Board meetings, discussions and reports during the preceding year. The Board also took into account the Advisor's compliance policies and procedures. The quality of administrative and other services, including the Advisor's role in coordinating the activities of the Funds' other service providers, was also considered. The Board also considered the Advisor's relationship with its affiliates and the resources available to them, as well as any potential conflicts of interest. The Trustees concluded that they were satisfied with the nature, extent and quality of services provided to each Fund by the Advisor under the Investment Advisory Agreement.

Advisor's Compensation and Profitability. The Board took into consideration the financial condition and profitability of the Advisor and its affiliates (including the Sub-Advisor to certain of the Funds) and the direct and indirect benefits derived by the Advisor and its affiliates from the Advisor's relationship with the Funds. The information considered by the Board included operating profit margin information for the Advisor's business as a whole. The Board noted that the Advisor waived advisory fees for thirteen of the Funds. The Board

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also noted that the Advisor pays the Sub-Advisors' sub-advisory fees out of the advisory fees the Advisor receives from the Funds. The Board reviewed the profitability of the Advisor's relationship with the Funds both before and after tax expenses and whether the Advisor has the financial wherewithal to continue to provide a high level of services to the Funds, noting the ongoing commitment of the Advisor's parent company with respect to providing support and resources as needed. The Board also considered that the Funds' distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds.

The Board recognized that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to each Fund and the entrepreneurial risk that it assumes as Advisor. Based upon their review, the Trustees concluded that the Advisor's and its affiliates' level of profitability, if any, from their relationship with each Fund was reasonable and not excessive.

Expenses and Performance. The Board compared the respective advisory fees and total expense ratios for each of the Funds with various comparative data, including the median and average advisory fees and total expense ratios of each Fund's respective peer group. The Board also considered, among other data, the Funds' respective performance results during the six-month, twelve-month and thirty-six-month periods ended September 30, 2010, as applicable, and noted that the Board reviews on a quarterly basis detailed information about each Fund's performance results, portfolio composition and investment strategies. The Board also took into account current market conditions and their effect on the Funds' performance.

The Board also considered the effect of each Fund's growth and size on its performance and expenses. The Board noted that the Advisor had waived advisory fees for thirteen of the Funds in order to reduce the Fund's respective operating expenses to targeted levels. The Board noted that the sub-advisory fees under the Sub-Advisory Agreement with respect to each Fund were paid by the Advisor out of the advisory fees it receives from the Fund and the impact of such sub-advisory fees on the profitability of the Advisor. In reviewing the respective expense ratios and performance of each of the Funds, the Board also took into account the nature, extent and quality of the services provided to the Funds by the Advisor and its affiliates.

The Board also discussed with management certain factors as set forth in the conditions to the Funds' exemptive order issued by the Securities and Exchange Commission relating to investments by the non-money market Funds in the Touchstone Institutional Money Market Fund. Based upon the nature and extent of the services provided by the Advisor and the Sub-Advisors to each Fund and a discussion by management with respect to the costs to the Advisor and Sub-Advisors of the portion of the advisory fee and sub-advisory fee attributable to the portion of the non-money market Funds' assets to be invested in the Touchstone Institutional Money Market Fund, the Board concluded that the advisory fee and the sub-advisory fee of each non-money market Fund were based on services that were in addition to, rather than duplicative of, services provided under the Investment Advisory and Sub-Advisory Agreements with respect to the portion of such Funds' assets to be invested in the Touchstone Institutional Money Market Fund.

The Board considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:

Touchstone Capital Appreciation Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving the Fund's entire advisory fee. The Fund's performance was in the 4th quartile for the six- and twelve-month periods ended September 30, 2010. The Board noted management's explanation for the Fund's underperformance. Based upon their review, the Trustees concluded that the Fund's performance was being

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addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Core Plus Fixed Income Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median and above the median, respectively, of its peer group. The Board took into account management's discussion of the Fund's expenses and also noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund's performance was in the 3rd quartile for the six-month period ended September 30, 2010, and the Fund's performance was in the 4th quartile for the twelve-month period ended September 30, 2010. The Board noted management's explanation for the Fund's underperformance. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Emerging Markets Equity Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Fund's performance was in the 1st quartile for the six- and twelve-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Global Equity Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving the Fund's entire advisory fee. The Fund's performance was in the 2nd quartile for the six-month period ended September 30, 2010, and the Fund's performance was in the 4th quartile for the twelve-month period ended September 30, 2010. The Board noted management's explanation for the Fund's performance. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Global Real Estate Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving the Fund's entire advisory fee. The Fund's performance was in the 2nd quartile for the six- and twelve-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Healthcare and Biotechnology Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median and above the median, respectively, of its peer group. The Board took into account management's discussion of the Fund's expenses and noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund's performance was in the 3rd quartile of the Fund's peer group for the six-month period ended September 30, 2010, and the Fund's performance was in the 4th quartile of the Fund's peer group for the twelve- and thirty-six-month periods ended September 30, 2010. The Board noted management's explanation for the Fund's underperformance and the proposed merger of the Fund into another Touchstone Fund. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

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Touchstone Intermediate Fixed Income Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Fund's performance was in the 4th quartile of the Fund's peer group for the six-, twelve- and thirty-six-month periods ended September 30, 2010. The Board took into account that the Sub-Advisor had assumed management of the Fund on April 22, 2009 after the prior sub-advisor had been replaced. The Board noted management's explanation for the Fund's underperformance. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone International Fixed Income Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving the Fund's entire advisory fee. The Fund's performance was in the 1st quartile of the Fund's peer group for the six- and twelve-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Large Cap Relative Value Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were at the median of its peer group. The Board noted that the Advisor was currently waiving the Fund's entire advisory fee. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund's performance was in the 3rd quartile for the six-month period ended September 30, 2010, and the Fund's performance was in the 1st quartile for the twelve-month period ended September 30, 2010. The Board noted management's explanation for the Fund's recent underperformance. Based upon their review, the Trustees concluded that the Fund's overall performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Market Neutral Equity Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below and at the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund's performance was in the 2nd quartile for the six-month period ended September 30, 2010, and the Fund's performance was in the 4th quartile for the twelve-month period ended September 30, 2010. The Board noted management's explanation for the Fund's performance. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Mid Cap Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Fund's performance was in the 4th quartile of the Fund's peer group for the six- and thirty-six-month periods ended September 30, 2010, and the Fund's performance was in the 3rd quartile for the twelve-month period ended September 30, 2010. The Board noted management's discussion regarding the Fund's underperformance. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Mid Cap Value Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving the Fund's entire advisory fee. The Fund's performance was in the 1st quartile for the six- and twelve-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's

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performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Premium Yield Equity Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were above the median and below the median, respectively, of its peer group. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund's performance was in the 2nd quartile of the Fund's peer group for the six- and twelve-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Sands Capital Select Growth Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were above the median of its peer group. The Board took into account management's discussion of the Fund's expenses and the Advisor's current undertaking to add breakpoints to the Fund's base advisory fee. The Fund's performance was in the 1st quartile of the Fund's peer group for the six-, twelve- and thirty-six-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Short Duration Fixed Income Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund's performance was in the 4th quartile of the Fund's peer group for the six- and twelve-month periods ended September 30, 2010, and the Fund's performance was in the 3rd quartile for the thirty-six month period ended September 30, 2010. The Board also took into account that the Sub-Advisor had assumed management of the Fund in February 2009, after the prior sub-advisor had been replaced. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Small Cap Core Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group. The Fund's performance was in the 2nd quartile for the six-month period ended September 30, 2010, and the Fund's performance was in the 1st quartile for the twelve-month period ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Small Cap Value Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Board also noted the Advisor's current undertaking to add breakpoints to the Fund's advisory and sub-advisory fees in connection with the upcoming change in the Fund's sub-advisor. The Fund's performance was in the 2nd quartile of the Fund's peer group for the six-month period ended September 30, 2010, the Fund's performance was in the 3rd quartile of the Fund's peer group for the twelve-month period ended September 30, 2010, and the Fund's performance was in the 4th quartile of the Fund's peer group for thirty-six-month period ended September 30, 2010. The Board noted management's discussion regarding the Fund's performance and also took into account that a new sub-advisor would be assuming responsibility for the day-to-day management of the Fund in December 2010. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

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Touchstone Ultra Short Duration Fixed Income Fund. The Fund's advisory fee and total expense ratio (net of applicable expense waivers) were below the median of its peer group The Fund's performance was in the 2nd quartile of the Fund's peer group for the six-, twelve- and thirty-six-month periods ended September 30, 2010. Based upon their review, the Trustees concluded that the Fund's performance was satisfactory and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Economies of Scale. The Board considered the effect of each Fund's current size and potential growth on its performance and expenses. The Board took into account management's discussion of the Fund's advisory fee structure. The Board considered the effective advisory fees under the Investment Advisory Agreement as a percentage of assets at different asset levels and possible economies of scale that might be realized if the assets of each Fund increase. The Board determined that adding breakpoints at specified levels to the advisory fee schedule of each Fund that currently did not have such breakpoints was not appropriate at that time. The Board also noted that if a Fund's assets increase over time, the Fund might realize other economies of scale if assets increase proportionally more than certain other expenses. The Board also considered the fact that, under the Investment Advisory Agreement, the advisory fee payable to the Advisor by a Fund was reduced by the total sub-advisory fee paid by the Advisor to the Fund's Sub-Advisor.

Conclusion. In considering the renewal of the Funds' Investment Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Trustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately with respect to each Fund. The Board reached the following conclusions regarding the Funds' Investment Advisory Agreement with the Advisor, among others: (a) the Advisor had demonstrated that it possessed the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Advisor maintains an appropriate compliance program; (c) the performance of each Fund is satisfactory in relation to the performance of funds with similar investment objectives and to relevant indices or, as discussed above, is being addressed; and (d) each Fund's advisory fee is reasonable in relation to those of similar funds and to the services to be provided by the Advisor. Based on their conclusions, the Trustees determined with respect to each Fund that continuation of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.

In approving the Funds' respective Sub-Advisory Agreements, the Board considered various factors with respect to each Fund and the applicable Sub-Advisory Agreement, among them: (1) the nature, extent and quality of services provided to the Fund, including the personnel providing such services; (2) the Sub-Advisor's compensation; (3) a comparison of the sub-advisory fee and performance with other advisers; and (4) the terms of the Sub-Advisory Agreement. The Board's analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Services Provided; Investment Personnel. The Board considered information provided by the Advisor regarding the services provided by each Sub-Advisor, including information presented periodically throughout the previous year. The Board noted the affiliation of the Sub-Advisor to certain of the Funds with the Advisor, noting any potential conflicts of interest. The Board also noted that, on a periodic basis, the Board meets with portfolio managers of the Sub-Advisors to discuss their respective performance and investment processes and strategies. The Board considered each Sub-Advisor's level of knowledge and investment style. The Board reviewed the experience and credentials of the applicable investment personnel who are responsible for managing the investment of portfolio securities with respect to the Funds. The Board also noted each Sub-Advisor's brokerage practices. The Board also considered each Sub-Advisor's regulatory and compliance history. The Board noted that the Advisor's compliance monitoring processes include quarterly

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reviews of compliance reports and annual compliance reviews of the Sub-Advisors and that compliance issues, if any, are reported to the Board.

Sub-Advisor's Compensation. The Board also took into consideration the financial condition of each Sub-Advisor and any indirect benefits derived by each Sub-Advisor and its affiliates from the Sub-Advisor's relationship with the Funds. In considering the profitability to each Sub-Advisor of its relationship with the Funds, the Board noted the undertakings of the Advisor to maintain expense limitations for the Funds and also noted that the sub-advisory fees under the Sub-Advisory Agreements were paid by the Advisor out of the advisory fees that it receives under the Investment Advisory Agreement and in addition, with respect to the unaffiliated Sub-Advisors, are negotiated at arm's length. As a consequence, the profitability to each Sub-Advisor of its relationship with a Fund was not a substantial factor in the Board's deliberations. For similar reasons, the Board did not consider the potential economies of scale in each Sub-Advisor's management of the applicable Fund to be a substantial factor in its consideration, although the Board noted that the sub-advisory fee schedule for some of the Funds contained breakpoints that would reduce the sub-advisory fee rate on assets above specified levels as the applicable Fund's assets increased.

Sub-Advisory Fees and Fund Performance. The Board considered that each Fund pays an advisory fee to the Advisor and that the Advisor pays the sub-advisory fee to the Sub-Advisor. The Board also compared the sub-advisory fees paid by the Advisor to fees charged by the Sub-Advisor to manage comparable institutional separate accounts. The Board considered the amount retained by the Advisor and the sub-advisory fee paid to each Sub-Advisor with respect to the various services provided by the Advisor and the Sub-Advisor. The Board also noted that the Advisor negotiated the sub-advisory fee with each of the unaffiliated Sub-Advisors at arm's length. The Board compared the sub-advisory fee for each Fund with various comparative data, including the median and average sub-advisory fees of each Fund's peer group, and considered the following information:

Touchstone Capital Appreciation Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Core Plus Fixed Income Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Emerging Markets Equity Fund. The Fund's sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Global Equity Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Global Real Estate Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Healthcare and Biotechnology Fund. The Fund's sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

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Touchstone Intermediate Fixed Income Fund. The Fund's sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone International Fixed Income Fund. The Fund's sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Large Cap Relative Value Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Market Neutral Equity Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Mid Cap Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Mid Cap Value Fund. The Fund's sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Premium Yield Equity Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Sands Capital Select Growth Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Short Duration Fixed Income Fund. The Fund's sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Small Cap Core Fund. The Fund's sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Small Cap Value Fund. The Fund's sub-advisory fee with the Sub-Advisor was above the median of its peer group. The Board took into account the Advisor's undertaking to include breakpoints in the proposed sub-advisory fee for the Fund in connection with the upcoming change in the Fund's sub-advisor. Based upon their review, the Trustees concluded that the Fund's sub-advisory fees were reasonable in light of the high quality of services received by the Fund and the other factors considered.

Touchstone Ultra Short Duration Fixed Income Fund. The Fund's sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund's sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

As noted above, the Board considered each Fund's performance during the six-, twelve- and thirty-six-month periods ended September 30, 2010, as applicable, as compared to each Fund's peer group and noted that the

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Board reviews on a quarterly basis detailed information about each Fund's performance results, portfolio composition and investment strategies. The Board noted the Advisor's expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Sub-Advisor. The Board was mindful of the Advisor's focus on each Sub-Advisor's performance and the Advisor's ways of addressing underperformance.

Conclusion. In considering the renewal of the Sub-Advisory Agreement with respect to each Fund, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Board reached the following conclusions regarding each Sub-Advisory Agreement, among others: (a) the Sub-Advisor was qualified to manage each Fund's assets in accordance with the Fund's investment objectives and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and to relevant indices or, as discussed above, is being addressed; (d) each Fund's advisory fees are reasonable relative to those of similar funds and to the services to be provided by the Advisor and the Sub-Advisor; and (e) the Sub-Advisor's investment strategies are appropriate for pursuing the investment objectives of each Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement with respect to each Fund was in the best interests of the Fund and its shareholders.

Advisory Agreement Approval Disclosure

At a meeting held on November 18, 2010, the Board of Trustees (the "Board" or "Trustees") of the Touchstone Funds Group Trust (the "Trust"), and by a separate vote, the Independent Trustees of the Trust, approved an amendment to the Investment Advisory Agreement between the Trust and the Advisor modifying the advisory fee with respect to the Touchstone Small Cap Value Fund (the "Fund") and also initially approved the Sub-Advisory Agreement with respect to the Fund between the Advisor and DePrince, Race & Zollo, Inc. (the "Sub-Advisor").

In determining whether to approve the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement, the Advisor furnished information necessary for a majority of the Independent Trustees to make the determination that the approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders. The Board took into account information it had received in connection with its consideration of the renewal of the Investment Advisory Agreement with respect to the Fund as well as information and materials relating to the Sub-Advisor. The information provided to the Board included: (1) industry data comparing advisory fees and expense ratios of comparable investment companies; (2) comparative performance information; (3) the Advisor's and its affiliates' revenues and costs of providing services to the Fund; and (4) information about the Advisor's and Sub-Advisors' personnel. Prior to voting, the Independent Trustees reviewed the proposed approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement with management and with experienced independent legal counsel and received materials from such counsel discussing the legal standards for their consideration of the proposed approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement. The Independent Trustees also reviewed the proposed approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement in private sessions with independent legal counsel at which no representatives of management were present.

In approving the amendment to the Investment Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services provided to the Fund, including the personnel providing services; (2) the Advisor's compensation and profitability; (3) a comparison of fees and performance with other advisers; (4) economies of scale; and (5) the terms of the Investment Advisory Agreement, including

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the proposed advisory fee. The Board's analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Advisor Services. The Board considered the level and depth of knowledge of the Advisor, including the professional experience and qualifications of senior personnel. The Board discussed the Advisor's effectiveness in monitoring the performance of the Fund's current sub-advisor and the Advisor's timeliness in responding to performance issues. In evaluating the quality of services provided by the Advisor, the Board took into account its familiarity with the Advisor's senior management through Board meetings, discussions and reports during the preceding year. The Board also took into account the Advisor's compliance policies and procedures. The quality of administrative and other services, including the Advisor's role in coordinating the activities of the Fund's other service providers, was also considered. The Board also considered the Advisor's relationship with its affiliates and the resources available to them, as well as any potential conflicts of interest. The Trustees concluded that they were satisfied with the nature, extent and quality of services provided to the Fund by the Advisor under the Investment Advisory Agreement.

Advisor's Compensation and Profitability. The Board took into consideration the financial condition and profitability of the Advisor and its affiliates and the direct and indirect benefits derived by the Advisor and its affiliates from the Advisor's relationship with the Fund. The information considered by the Board included operating profit margin information for the Advisor's business as a whole. The Board noted that the Advisor waived a portion of the Fund's advisory fee and would pay the Sub-Advisor's sub-advisory fees out of the advisory fees the Advisor receives from the Fund. The Board reviewed the profitability of the Advisor's relationship with the Fund both before and after tax expenses and whether the Advisor has the financial wherewithal to continue to provide a high level of services to the Fund, noting the ongoing commitment of the Advisor's parent company with respect to providing support and resources as needed. The Board also considered that the Fund's distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Fund.

The Board recognized that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the Fund and the entrepreneurial risk that it assumes as Advisor. Based upon their review, the Trustees concluded that the Advisor's and its affiliates' level of profitability from their relationship with the Fund was reasonable and not excessive.

Expenses and Performance. The Board compared the current advisory fee and total expense ratio for the Fund with various comparative data, including the median and average advisory fees and total expense ratios of the Fund's peer group. The Board also considered, among other data, the Fund's performance results during the six-month, twelve-month and thirty-six-month periods ended September 30, 2010 and noted that the Board reviews on a quarterly basis detailed information about the Fund's performance results, portfolio composition and investment strategies. The Board also took into account current market conditions and their effect on the Fund's performance.

The Board also considered the effect of the Fund's growth and size on its performance and expenses. The Board noted that the Advisor had waived a portion of its advisory fee in order to reduce the Fund's operating expenses to targeted levels. The Board also noted that the proposed sub-advisory fees under the Sub-Advisory Agreement would be paid by the Advisor out of the advisory fees it receives from the Fund and the impact of such sub-advisory fees on the profitability of the Advisor. In reviewing the expense ratio and performance of the Fund, the Board also took into account the nature, extent and quality of the services provided to the Fund by the Advisor and its affiliates.

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Other Items (Continued)

The Board considered, among other data, the following specific factors and related conclusions with respect to the Fund. The Fund's current advisory fee and total expense ratio (net of applicable expense waivers) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund's advisory fee. The Board also noted the Advisor's current undertaking to add breakpoints to the Fund's advisory and sub-advisory fees in connection with the upcoming change in the Fund's sub-advisor. The Fund's performance was in the 2nd quartile of the Fund's peer group for the six-month period ended September 30, 2010, the Fund's performance was in the 3rd quartile of the Fund's peer group for the twelve-month period ended September 30, 2010, and the Fund's performance was in the 4th quartile of the Fund's peer group for thirty-six-month period ended September 30, 2010. The Board noted management's discussion regarding the Fund's performance and also took into account that the Sub-Advisor would be assuming responsibility for the day-to-day management of the Fund in December 2010. Based upon their review, the Trustees concluded that the Fund's performance was being addressed and also found that the proposed advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.

Economies of Scale. The Board considered the effect of the Fund's current size and potential growth on its performance and expenses. The Board took into account management's discussion of the Fund's advisory fee structure. The Board considered the effective advisory fee under the Investment Advisory Agreement as a percentage of assets at different asset levels and possible economies of scale that might be realized if the assets of the Fund increase. The Board took into account the Advisor's current undertaking to add a breakpoint to the Fund's advisory fee. The Board also noted that if the Fund's assets increase over time, the Fund might realize other economies of scale if assets increase proportionally more than certain other expenses. The Board also considered the fact that, under the Investment Advisory Agreement, the proposed advisory fee payable to the Advisor by the Fund would be reduced by the total sub-advisory fee paid by the Advisor to the Sub-Advisor.

Conclusion. In considering the approval of the amendment to the Funds' Investment Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Trustees evaluated all information available to them. The Board reached the following conclusions regarding the Fund's Investment Advisory Agreement with the Advisor, among others: (a) the Advisor had demonstrated that it possessed the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Advisor maintains an appropriate compliance program; (c) the performance of the Fund is being addressed; and (d) the Fund's proposed advisory fee is reasonable in relation to those of similar funds and to the services to be provided by the Advisor. Based on their conclusions, the Trustees determined that approval of the amendment to the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.

In approving the Fund's Sub-Advisory Agreement, the Board considered various factors with respect to the Fund and the Sub-Advisory Agreement, among them: (1) the nature, extent and quality of services to be provided to the Fund, including the personnel who would be providing such services; (2) the Sub-Advisor's proposed compensation; (3) a comparison of the Fund's current sub-advisory fee and performance with other advisers; and (4) the terms of the Sub-Advisory Agreement, including the proposed sub-advisory fee. The Board's analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Services Provided; Investment Personnel. The Board considered information provided by the Advisor regarding the services to be provided by the Sub-Advisor. The Board also considered the Sub-Advisor's level of knowledge and investment style. The Board reviewed the experience and credentials of the investment personnel who would be responsible for managing the investment of portfolio securities with respect to the Fund. The Board also noted the Sub-Advisor's brokerage practices. The Board also considered

165

Other Items (Continued)

the Sub-Advisor's regulatory and compliance history. The Board noted that the Advisor's compliance monitoring processes would include quarterly reviews of compliance reports and annual compliance visits to the Sub-Advisor and that compliance issues, if any, would be reported to the Board.

Sub-Advisor's Compensation. The Board also took into consideration the financial condition of the Sub-Advisor and any indirect benefits to be derived by the Sub-Advisor and its affiliates from the Sub-Advisor's relationship with the Fund. In considering the anticipated profitability to the Sub-Advisor of its relationship with the Fund, the Board noted the Advisor's current undertakings to maintain expense limitations for the Fund and to add a breakpoint to the sub-advisory fee. The Board also took into account that the sub-advisory fee under the Sub-Advisory Agreement would be paid by the Advisor out of the advisory fee that it receives under the Investment Advisory Agreement and was negotiated at arm's length. As a consequence, the anticipated profitability to the Sub-Advisor of its relationship with the Fund was not a substantial factor in the Board's deliberations. For similar reasons, the Board did not consider the potential economies of scale in the Sub-Advisor's management of the Fund to be a substantial factor in its consideration, although the Board noted that the proposed sub-advisory fee schedule would contain a breakpoint that would reduce the sub-advisory fee rate on assets above a specified level as the Fund's assets increased.

Sub-Advisory Fees and Fund Performance. The Board considered that the Fund pays an advisory fee to the Advisor and that the Advisor would pay the sub-advisory fee to the Sub-Advisor. The Board considered the amount to be retained by the Advisor and the sub-advisory fee to be paid to the Sub-Advisor with respect to the various services to be provided by the Advisor and the Sub-Advisor. The Board also noted that the Advisor negotiated the sub-advisory fee with the Sub-Advisor at arm's length. The Board considered the proposed sub-advisory fee for the Fund and found that the Fund's sub-advisory fee was reasonable in light of the services to be received by the Fund and the other factors considered.

As noted above, the Board considered the Fund's performance during the six-, twelve- and thirty-six-month periods ended September 30, 2010 as compared to the Fund's peer group. The Board also took into account the performance history of the Sub-Advisor's small-cap investment style. The Board noted the Advisor's expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Fund's current sub-advisor. The Board was mindful of the Advisor's focus on the performance of the Fund's sub-advisor and the Advisor's ways of addressing underperformance.

Conclusion. In considering the approval of the Sub-Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Board reached the following conclusions regarding the Sub-Advisory Agreement, among others: (a) the Sub-Advisor is qualified to manage the Fund's assets in accordance with the Fund's investment objectives and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the performance of the Fund is being addressed; (d) the Fund's proposed advisory fee is reasonable relative to those of similar funds and to the services to be provided by the Advisor and the Sub-Advisor; and (e) the Sub-Advisor's proposed investment strategies are appropriate for pursuing the investment objectives of the Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.

166

PRIVACY PROTECTION POLICY

We Respect Your Privacy

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

Our Pledge to Our Clients

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

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

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

We Collect the Following Nonpublic Personal Information About You:

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

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

Categories of Information We Disclose and Parties to Whom We Disclose

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

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

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

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

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

•  We will not sell your personal information to anyone.

We May Provide Information to Service Your Account

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

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

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

A Member of Western & Southern Financial Group^®

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

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303 Broadway, Suite 1100

Cincinnati, OH 45202-4203

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

JPMorgan Chase Bank, N.A.

P.O. Box 5354

Cincinnati, Ohio 45201-5354

Shareholder Service

800.543.0407

* A Member of Western & Southern Financial Group

TSF-56-TFGT-SAR-1103

Item 2.  Code of Ethics.

Not required in semi-annual report filing.

Item 3.  Audit Committee Financial Expert.

Not required in semi-annual report filing.

Item 4.  Principal Accountant Fees and Services.

Not required in semi-annual report filing.

Item 5.  Audit Committee of Listed Registrants.

Not applicable

Item 6.  Schedule of Investments.

The Schedule of Investments in securities of unaffiliated issuers is included in the Semiannual Report.

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 AffiliatedPurchasers.

Not applicable.

Item 10.  Submission of Matters to a Vote of Security Holders.

No material changes have been made to the procedures by which shareholders may recommend nominees to its Board of Trustees.

Item 11.  Controls and Procedures.

(a)Based on an evaluation of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) the registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are effective as of a date within 90 days of the filing date of this report.

(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) that occurred during the registrant’s second fiscal half-year that have

materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.  Exhibits.

(a)(1)   Not applicable in semiannual filing.

(a)(2)   Certifications required by Item 12(a)(2) of Form N-CSR are filed herewith.

(b)       Certification required by Item 11(b) of Form N-CSR is filed herewith.

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 Funds Group Trust

By (Signature and Title)

/s/ Jill T. McGruder

Jill T. McGruder

President

Date: May 25, 2011

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

Date: May 25, 2011

/s/ Terrie A. Wiedenheft

Terrie A. Wiedenheft

Controller & Treasurer

Date: May 25, 2011