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 811-08104
Touchstone Funds Group Trust
(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Address of principal executive offices) (Zip code)
Jill T. McGruder
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Name and address of agent for service)
Registrant's telephone number, including area code: 800-638-8194
Date of fiscal year end:September 30
Date of reporting period:March 31, 2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
March 31, 2020
(Unaudited)
Semi-Annual Report
Touchstone Funds Group Trust
Touchstone Active Bond Fund
Touchstone Anti-Benchmark®International Core Equity Fund
Touchstone Anti-Benchmark®US Core Equity Fund
Touchstone Credit Opportunities II Fund
Touchstone High Yield Fund
Touchstone Impact Bond Fund
Touchstone International ESG Equity Fund
Touchstone Mid Cap Fund
Touchstone Mid Cap Value Fund
Touchstone Sands Capital Select Growth Fund
Touchstone Small Cap Fund
Touchstone Small Cap Value Fund
Touchstone Ultra Short Duration Fixed Income Fund
IMPORTANT NOTE: Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Touchstone Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the shareholder reports from Touchstone Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, annual and semi-annual shareholder reports will be available on the Touchstone Funds’ website (TouchstoneInvestments.com/Resources), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future annual and semi-annual shareholder reports in paper, free of charge. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. To elect to receive paper copies of shareholder reports through the mail or otherwise change your delivery method, contact your financial intermediary or, if you hold your shares directly through Touchstone Funds, visit TouchstoneInvestments.com/Resources/Edelivery or call Touchstone Funds toll-free at 1.800.543.0407. Your election to receive shareholder reports in paper will apply to all Touchstone Funds that you hold through the financial intermediary, or directly with Touchstone.
Table of Contents
This report identifies the Funds' investments on March 31, 2020. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.
2
Tabular Presentation of Portfolios of Investments(Unaudited)
March 31, 2020
The tables below provide each Fund’s geographic allocation, sector allocation and/or credit quality. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Active Bond Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
AAA/Aaa | 30.4 | % | ||
AA/Aa | 5.5 | |||
A/A | 13.7 | |||
BBB/Baa | 21.6 | |||
BB/Ba | 6.7 | |||
B/B | 4.6 | |||
CCC | 0.3 | |||
Not Rated | 9.1 | |||
Cash Equivalents | 8.1 | |||
Total | 100.0 | % | ||
Touchstone Anti-Benchmark® US Core Equity Fund | ||||
Sector Allocation** | (% of Net Assets) | |||
Consumer Staples | 18.9 | % | ||
Consumer Discretionary | 15.4 | |||
Utilities | 12.2 | |||
Financials | 11.7 | |||
Health Care | 11.2 | |||
Materials | 7.4 | |||
Real Estate | 6.8 | |||
Communication Services | 5.4 | |||
Information Technology | 4.0 | |||
Industrials | 3.9 | |||
Energy | 1.4 | |||
Short Term Investment Funds | 2.2 | |||
Other Assets/Liabilities (Net) | (0.5 | ) | ||
Total | 100.0 | % | ||
Touchstone Anti-Benchmark® International Core Equity Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
Japan | 30.5 | % | ||
Hong Kong | 8.1 | |||
United Kingdom | 6.9 | |||
Germany | 6.5 | |||
Australia | 6.4 | |||
Denmark | 6.0 | |||
Switzerland | 4.8 | |||
Finland | 4.3 | |||
Netherlands | 3.8 | |||
Sweden | 3.3 | |||
France | 2.7 | |||
Belgium | 2.7 | |||
Israel | 2.6 | |||
Ireland | 2.1 | |||
Spain | 2.0 | |||
New Zealand | 1.9 | |||
Norway | 1.6 | |||
Italy | 0.9 | |||
Singapore | 0.8 | |||
Luxembourg | 0.7 | |||
United States | 0.1 | |||
Armenia | 0.1 | |||
Short-Term Investment Funds | 2.0 | |||
Other Assets/Liabilities (Net) | (0.8 | ) | ||
Total | 100.0 | % | ||
* | Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer. |
** Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
3
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Credit Opportunities II Fund | ||||
Credit Quality* | (% of Fixed Income Securities) | |||
BBB/Baa | 4.2 | % | ||
BB/Ba | 34.5 | |||
B/B | 39.5 | |||
CCC | 11.0 | |||
C or Lower | 0.1 | |||
Not Rated | 3.9 | |||
Cash equivalents | 6.8 | |||
100.0 | % | |||
Sector Allocation** | (% of Net Assets) | |||
Long Positions | ||||
Corporate Bonds | ||||
Communication Services | 16.5 | % | ||
Consumer Discretionary | 11.1 | |||
Industrials | 10.7 | |||
Energy | 9.5 | |||
Health Care | 4.7 | |||
Consumer Staples | 4.6 | |||
Materials | 4.2 | |||
Real Estate | 3.8 | |||
Information Technology | 3.4 | |||
Utilities | 2.5 | |||
Financials | 1.9 | |||
Asset-Backed Securities | 8.3 | |||
Bank Loans | 7.8 | |||
Common Stocks | 0.3 | |||
Purchased Call Options | 0.1 | |||
Purchased Put Options | 0.5 | |||
Short-Term Investment Funds | 3.5 | |||
Cash Collateral for Securities Sold | 1.0 | |||
Short and Written Options | ||||
Other Assets/Liabilities (Net) | 7.1 | |||
101.5 | % | |||
Short Positions | ||||
Corporate Bonds | (1.3 | ) | ||
Written Put Options | (0.2 | ) | ||
(1.5 | ) | |||
Total | 100.0 | % | ||
Touchstone High Yield Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
BBB/Baa | 5.7 | % | ||
BB/Ba | 55.1 | |||
B/B | 35.0 | |||
CCC | 1.5 | |||
Cash equivalents | 2.7 | |||
Total | 100.0 | % | ||
Touchstone Impact Bond Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
AAA/Aaa | 61.6 | % | ||
AA/Aa | 7.4 | |||
A/A | 11.4 | |||
BBB/Baa | 11.7 | |||
BB/Ba | 1.7 | |||
Not Rated | 3.6 | |||
Cash Equivalents | 2.6 | |||
Total | 100.0 | % | ||
* | Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer. |
** Sector Classifications are based upon the Global Industry Classification Standard (GICS®)
4
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone International ESG Equity Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
Japan | 21.4 | % | ||
Germany | 12.7 | |||
United Kingdom | 10.3 | |||
Switzerland | 9.9 | |||
France | 9.3 | |||
Canada | 6.6 | |||
China | 5.7 | |||
Taiwan | 4.2 | |||
Sweden | 4.1 | |||
Italy | 3.7 | |||
South Korea | 2.4 | |||
Hong Kong | 1.9 | |||
Denmark | 1.9 | |||
India | 1.2 | |||
Indonesia | 1.1 | |||
Exchange-Traded Funds | 1.0 | |||
Short-Term Investment Fund | 2.2 | |||
Other Assets/Liabilities (Net) | 0.4 | |||
Total | 100.0 | % | ||
Touchstone Mid Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Utilities | 13.2 | % | ||
Health Care | 12.9 | |||
Financials | 12.8 | |||
Consumer Staples | 12.0 | |||
Industrials | 10.4 | |||
Consumer Discretionary | 9.4 | |||
Real Estate | 9.0 | |||
Information Technology | 8.9 | |||
Materials | 8.1 | |||
Energy | 1.7 | |||
Short-Term Investment Fund | 2.4 | |||
Other Assets/Liabilities (Net) | (0.8 | ) | ||
Total | 100.0 | % | ||
Touchstone Mid Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 24.4 | % | ||
Industrials | 23.2 | |||
Financials | 11.5 | |||
Materials | 10.8 | |||
Consumer Staples | 9.3 | |||
Consumer Discretionary | 8.3 | |||
Health Care | 3.7 | |||
Communication Services | 2.3 | |||
Real Estate | 2.1 | |||
Short-Term Investment Fund | 7.4 | |||
Other Assets/Liabilities (Net) | (3.0 | ) | ||
Total | 100.0 | % | ||
Touchstone Sands Capital Select Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 34.6 | % | ||
Communication Services | 27.2 | |||
Health Care | 13.9 | |||
Consumer Discretionary | 12.9 | |||
Industrials | 5.6 | |||
Consumer Staples | 2.3 | |||
Short-Term Investment Funds | 7.3 | |||
Other Assets/Liabilities (Net) | (3.8 | ) | ||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
5
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Small Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Industrials | 26.2 | % | ||
Financials | 16.3 | |||
Materials | 13.6 | |||
Consumer Discretionary | 13.6 | |||
Real Estate | 10.2 | |||
Health Care | 4.8 | |||
Information Technology | 4.7 | |||
Consumer Staples | 4.3 | |||
Energy | 2.2 | |||
Short-Term Investment Fund | 4.1 | |||
Other Assets/Liabilities (Net) | (0.0 | ) | ||
Total | 100.0 | % | ||
Touchstone Ultra Short Duration Fixed Income Fund | ||||
Credit Quality** | (% of Investment Securities) | |||
AAA/Aaa | 32.8 | % | ||
AA/Aa | 13.1 | |||
A/A | 14.5 | |||
BBB/Baa | 20.0 | |||
BB/Ba | 0.4 | |||
CCC | 0.1 | |||
Not Rated | 8.6 | |||
Cash Equivalents | 10.5 | |||
Total | 100.0 | % | ||
Touchstone Small Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Industrials | 17.8 | % | ||
Financials | 15.7 | |||
Consumer Staples | 13.9 | |||
Information Technology | 13.6 | |||
Utilities | 7.8 | |||
Materials | 7.8 | |||
Consumer Discretionary | 6.8 | |||
Real Estate | 5.6 | |||
Health Care | 4.6 | |||
Communication Services | 2.8 | |||
Energy | 0.9 | |||
Exchange-Traded Fund | 1.8 | |||
Short-Term Investment Fund | 1.5 | |||
Other Assets/Liabilities (Net) | (0.6 | ) | ||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
** Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
6
Portfolio of Investments
Touchstone Active Bond Fund – March 31, 2020 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 40.3% | ||||||||
Financials — 8.1% | ||||||||
$ | 905,000 | Allstate Corp. (The), Ser B, 5.750%, 8/15/53 | $ | 805,450 | ||||
975,000 | American Express Co., 3.000%, 10/30/24 | 997,333 | ||||||
940,000 | American Financial Group, Inc., 5.250%, 4/2/30 | 913,444 | ||||||
1,050,000 | Ares Capital Corp., 3.250%, 7/15/25 | 833,342 | ||||||
754,000 | Bank of America Corp., 3.705%, 4/24/28 | 770,944 | ||||||
1,000,000 | Bank of America Corp. MTN, 4.000%, 1/22/25 | 1,052,391 | ||||||
896,000 | Bank of Montreal (Canada), 3.803%, 12/15/32 | 870,289 | ||||||
972,000 | Bank of New York Mellon Corp. (The) MTN, 2.950%, 1/29/23 | 993,725 | ||||||
917,000 | Barclays PLC (United Kingdom), 4.610%, 2/15/23(A) | 927,329 | ||||||
612,000 | Berkshire Hathaway Finance Corp., 4.250%, 1/15/49 | 752,600 | ||||||
665,000 | Citigroup, Inc., 3.200%, 10/21/26 | 688,609 | ||||||
426,000 | Citigroup, Inc., 4.750%, 5/18/46 | 476,530 | ||||||
400,000 | Cooke Omega Investments, Inc. / Alpha VesselCo Holdings, Inc. (Canada), 144a, 8.500%, 12/15/22 | 394,000 | ||||||
1,196,000 | Corestates Capital III, 144a, (3M LIBOR +0.570%), 2.262%, 2/15/27(A) | 1,004,640 | ||||||
244,000 | Credit Acceptance Corp., 6.625%, 3/15/26 | 231,727 | ||||||
468,000 | GE Capital International Funding Co. Unlimited Co., 4.418%, 11/15/35 | 499,394 | ||||||
152,000 | goeasy Ltd. (Canada), 144a, 5.375%, 12/1/24 | 141,694 | ||||||
928,000 | Goldman Sachs Group, Inc. (The), (3M LIBOR +1.000%), 2.801%, 7/24/23(A) | 879,552 | ||||||
525,000 | Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28 | 539,050 | ||||||
719,000 | HSBC Holdings PLC (United Kingdom),3.900%, 5/25/26 | 731,347 | ||||||
795,000 | Huntington Bancshares, Inc., 2.550%, 2/4/30 | 709,750 | ||||||
630,000 | JPMorgan Chase & Co., (3M LIBOR +0.730%), 2.536%, 4/23/24(A) | 592,780 | ||||||
961,000 | JPMorgan Chase & Co., 3.509%, 1/23/29(A) | 989,373 | ||||||
923,000 | Lloyds Banking Group PLC (United Kingdom), 3.574%, 11/7/28(A) | 915,822 | ||||||
732,000 | Mastercard, Inc., 3.300%, 3/26/27 | 797,530 | ||||||
955,000 | Morgan Stanley, 3.950%, 4/23/27 | 1,005,749 | ||||||
173,000 | Navient Corp., 5.500%, 1/25/23 | 162,620 | ||||||
173,000 | Navient Corp., 7.250%, 9/25/23 | 167,820 | ||||||
982,000 | New York Life Global Funding, 144a, 3.000%, 1/10/28 | 1,005,229 | ||||||
629,000 | Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47 | 531,789 | ||||||
1,154,000 | PNC Capital Trust, (3M LIBOR +0.570%), 2.150%, 6/1/28(A) | 925,534 | ||||||
184,000 | Prime Security Services Borrower LLC / Prime Finance, Inc., 144a, 5.750%, 4/15/26 | 180,320 | ||||||
258,000 | Quicken Loans, Inc., 144a, 5.250%, 1/15/28 | 252,272 | ||||||
520,000 | State Street Corp., 144a, 2.825%, 3/30/23 | 524,865 | ||||||
1,970,000 | Truist Bank, Ser A, (3M LIBOR +0.670%), 2.360%, 5/15/27(A) | 1,635,100 | ||||||
535,000 | Wells Fargo & Co., 4.125%, 8/15/23 | 550,442 | ||||||
25,450,385 | ||||||||
Consumer Staples — 4.6% | ||||||||
202,000 | Albertsons Cos, Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 144a, 4.625%, 1/15/27 | 200,990 | ||||||
142,000 | Albertsons Cos, Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 144a, 4.875%, 2/15/30 | 141,645 | ||||||
266,000 | American Builders & Contractors Supply Co., Inc., 144a, 4.000%, 1/15/28 | 242,060 | ||||||
1,173,000 | Anheuser-Busch Cos, LLC / Anheuser-Busch InBev Worldwide, Inc., (Belgium), 4.900%, 2/1/46 | 1,277,589 | ||||||
202,000 | Cardtronics, Inc. / Cardtronics USA, Inc., 144a, 5.500%, 5/1/25 | 191,900 | ||||||
317,000 | Carriage Services, Inc., 144a, 6.625%, 6/1/26 | 311,453 | ||||||
487,000 | Cimpress PLC (Ireland), 144a, 7.000%, 6/15/26 | 428,560 | ||||||
873,000 | Grupo Bimbo SAB de CV (Mexico), 144a, 4.500%, 1/25/22 | 876,562 | ||||||
1,018,000 | Imperial Brands Finance PLC (United Kingdom), 144a, 4.250%, 7/21/25 | 990,316 | ||||||
552,000 | JBS USA LUX SA / JBS USA Finance, Inc., 144a, 5.500%, 1/15/30 | 569,940 | ||||||
814,000 | Kraft Heinz Foods Co., 6.875%, 1/26/39 | 931,073 | ||||||
69,000 | Kraft Heinz Foods Co., 144a, 4.875%, 2/15/25 | 69,155 | ||||||
717,000 | Kroger Co. (The), 5.000%, 4/15/42 | 810,902 | ||||||
920,000 | Mars, Inc., 144a, 3.875%, 4/1/39 | 976,762 | ||||||
316,000 | Mattel, Inc., 144a, 6.750%, 12/31/25 | 321,340 | ||||||
710,000 | McDonald's Corp. MTN, 3.500%, 7/1/27 | 745,869 | ||||||
901,000 | Mondelez International Holdings Netherlands BV, 144a, 2.125%, 9/19/22 | 892,641 | ||||||
378,000 | Pilgrim's Pride Corp., 144a, 5.750%, 3/15/25 | 380,835 | ||||||
38,000 | Post Holdings, Inc., 144a, 5.000%, 8/15/26 | 39,108 | ||||||
191,000 | QVC, Inc., 4.750%, 2/15/27 | 168,944 | ||||||
740,000 | �� | Reynolds American, Inc. (United Kingdom), 4.450%, 6/12/25 | 744,419 | |||||
419,000 | Staples, Inc., 144a, 7.500%, 4/15/26 | 370,291 | ||||||
653,000 | Starbucks Corp., 3.350%, 3/12/50 | 615,463 | ||||||
168,000 | Superior Plus LP / Superior General Partner, Inc. (Canada), 144a, 7.000%, 7/15/26 | 163,800 | ||||||
50,000 | Sysco Corp., 5.650%, 4/1/25 | 52,053 | ||||||
696,000 | Sysco Corp., 5.950%, 4/1/30 | 730,689 | ||||||
1,048,000 | UnitedHealth Group, Inc., 3.500%, 8/15/39 | 1,130,199 | ||||||
34,000 | Yum! Brands, Inc., 144a, 7.750%, 4/1/25 | 35,700 | ||||||
14,410,258 | ||||||||
Communication Services — 4.0% | ||||||||
261,000 | Altice Financing SA (Luxembourg), 144a, 7.500%, 5/15/26 | 252,883 | ||||||
316,000 | Altice France SA (France), 144a, 7.375%, 5/1/26 | 313,677 | ||||||
604,000 | AT&T, Inc., 4.500%, 5/15/35 | 643,726 | ||||||
350,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 4.750%, 3/1/30 | 348,250 | ||||||
241,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.125%, 5/1/27 | 241,627 | ||||||
465,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.375%, 6/1/29 | 477,834 | ||||||
243,000 | CenturyLink, Inc., Ser S, 6.450%, 6/15/21 | 246,645 | ||||||
628,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45 | 757,569 | ||||||
507,000 | Comcast Corp., 4.000%, 3/1/48 | 598,231 | ||||||
648,000 | Comcast Corp., 4.150%, 10/15/28 | 727,583 | ||||||
240,000 | CommScope, Inc., 144a, 5.500%, 3/1/24 | 242,880 | ||||||
205,000 | Connect Finco SARL / Connect US Finco LLC (United Kingdom), 144a, 6.750%, 10/1/26 | 169,381 | ||||||
631,000 | Cox Communications, Inc., 144a, 3.350%, 9/15/26 | 636,828 | ||||||
219,000 | CSC Holdings LLC, 144a, 5.750%, 1/15/30 | 220,853 | ||||||
338,000 | Deutsche Telekom International Finance BV (Germany), 8.750%, 6/15/30 | 456,288 | ||||||
181,000 | Diamond Sports Group LLC / Diamond Sports Finance Co., 144a, 5.375%, 8/15/26 | 147,066 | ||||||
632,000 | DISH DBS Corp., 6.750%, 6/1/21 | 640,848 | ||||||
125,000 | EW Scripps Co. (The), 144a, 5.125%, 5/15/25 | 110,000 | ||||||
264,000 | GrubHub Holdings, Inc., 144a, 5.500%, 7/1/27 | 233,640 | ||||||
92,000 | Level 3 Financing, Inc., 144a, 4.625%, 9/15/27 | 91,439 | ||||||
281,000 | Netflix, Inc., 4.875%, 4/15/28 | 289,430 |
7
Touchstone Active Bond Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 40.3% (Continued) | ||||||||
Communication Services — (Continued) | ||||||||
$ | 249,000 | Nexstar Broadcasting, Inc., 144a, 5.625%, 8/1/24 | $ | 234,369 | ||||
376,000 | Photo Holdings Merger Sub, Inc., 144a, 8.500%, 10/1/26 | 304,560 | ||||||
143,000 | Qualitytech LP / QTS Finance Corp., 144a, 4.750%, 11/15/25 | 137,995 | ||||||
212,000 | Sirius XM Radio, Inc., 144a, 5.500%, 7/1/29 | 216,240 | ||||||
640,000 | Sprint Corp., 144a, 7.250%, 2/1/28 | 643,200 | ||||||
286,000 | TEGNA, Inc., 144a, 5.000%, 9/15/29 | 258,201 | ||||||
189,000 | Telecom Italia Capital SA (Italy), 6.000%, 9/30/34 | 187,110 | ||||||
107,000 | Telecom Italia Capital SA (Italy), 6.375%, 11/15/33 | 108,605 | ||||||
104,000 | T-Mobile USA, Inc., 4.500%, 2/1/26 | 106,340 | ||||||
198,000 | T-Mobile USA, Inc., 6.000%, 3/1/23 | 199,091 | ||||||
194,000 | VeriSign, Inc., 5.250%, 4/1/25 | 199,820 | ||||||
617,000 | Verizon Communications, Inc., 5.012%, 4/15/49 | 829,150 | ||||||
228,000 | Virgin Media Secured Finance PLC (United Kingdom), 144a, 5.500%, 5/15/29 | 227,179 | ||||||
990,000 | Walt Disney Co. (The), 1.750%, 8/30/24 | 991,969 | ||||||
12,490,507 | ||||||||
Health Care — 3.9% | ||||||||
800,000 | AbbVie, Inc., 4.450%, 5/14/46 | 849,064 | ||||||
246,000 | Acadia Healthcare Co., Inc., 5.125%, 7/1/22 | 234,469 | ||||||
108,000 | Acadia Healthcare Co., Inc., 5.625%, 2/15/23 | 101,778 | ||||||
896,000 | Alcon Finance Corp., 144a, 3.800%, 9/23/49 | 893,891 | ||||||
569,000 | Allergan Funding SCS, 3.800%, 3/15/25 | 582,567 | ||||||
662,000 | Allergan Sales LLC, 144a, 5.000%, 12/15/21 | 685,890 | ||||||
204,000 | AMN Healthcare, Inc., 144a, 5.125%, 10/1/24 | 196,350 | ||||||
397,000 | Bausch Health Cos, Inc., 144a, 6.125%, 4/15/25 | 391,045 | ||||||
395,000 | Bausch Health Cos, Inc., 144a, 6.500%, 3/15/22 | 398,950 | ||||||
639,000 | Bristol-Myers Squibb Co., 144a, 5.000%, 8/15/45 | 854,510 | ||||||
670,000 | Cigna Corp., 4.375%, 10/15/28 | 719,040 | ||||||
407,000 | CommonSpirit Health, 4.187%, 10/1/49 | 382,304 | ||||||
380,000 | CommonSpirit Health, 4.200%, 8/1/23 | 393,970 | ||||||
1,016,000 | CVS Health Corp., 4.300%, 3/25/28 | 1,086,758 | ||||||
477,000 | CVS Health Corp., 5.125%, 7/20/45 | 548,842 | ||||||
168,000 | DaVita, Inc., 5.125%, 7/15/24 | 167,496 | ||||||
1,019,000 | DH Europe Finance II Sarl, 3.250%, 11/15/39 | 1,007,313 | ||||||
148,000 | HCA, Inc., 3.500%, 9/1/30 | 134,267 | ||||||
306,000 | HCA, Inc., 5.375%, 2/1/25 | 312,885 | ||||||
251,000 | HLF Financing Sarl LLC / Herbalife International, Inc., 144a, 7.250%, 8/15/26 | 213,350 | ||||||
247,000 | Horizon Therapeutics USA, Inc., 144a, 5.500%, 8/1/27 | 247,963 | ||||||
472,000 | MEDNAX, Inc., 144a, 5.250%, 12/1/23 | 384,680 | ||||||
900,000 | Mylan, Inc., 4.550%, 4/15/28 | 880,299 | ||||||
239,000 | Select Medical Corp., 144a, 6.250%, 8/15/26 | 239,000 | ||||||
182,000 | Teleflex, Inc., 4.875%, 6/1/26 | 180,180 | ||||||
191,000 | Tenet Healthcare Corp., 5.125%, 5/1/25 | 182,405 | ||||||
12,269,266 | ||||||||
Energy — 3.6% | ||||||||
1,050,000 | Aker BP ASA (Norway), 144a, 3.000%, 1/15/25 | 833,489 | ||||||
962,000 | Boardwalk Pipelines LP, 4.450%, 7/15/27 | 721,200 | ||||||
615,000 | Canadian Natural Resources Ltd. (Canada), 6.250%, 3/15/38 | 478,704 | ||||||
718,000 | Cenovus Energy, Inc. (Canada), 5.250%, 6/15/37 | 319,269 | ||||||
790,000 | Cheniere Corpus Christi Holdings LLC, 7.000%, 6/30/24 | 693,277 | ||||||
233,000 | Cheniere Energy Partners LP, 5.625%, 10/1/26 | 214,360 | ||||||
350,000 | CNOOC Nexen Finance 2014 ULC (Canada), 4.250%, 4/30/24 | 372,396 | ||||||
696,000 | Columbia Pipeline Group, Inc., 4.500%, 6/1/25 | 685,696 | ||||||
158,000 | Delek Logistics Partners LP / Delek Logistics Finance Corp., 6.750%, 5/15/25 | 153,657 | ||||||
890,000 | Energy Transfer Partners LP, 4.950%, 6/15/28 | 736,172 | ||||||
782,000 | EQT Corp., 6.125%, 2/1/25 | 602,218 | ||||||
189,000 | Genesis Energy LP / Genesis Energy Finance Corp., 6.000%, 5/15/23 | 137,091 | ||||||
500,000 | KazMunayGas National Co. JSC (Kazakhstan), 144a, 4.750%, 4/19/27 | 477,716 | ||||||
400,000 | KazMunayGas National Co. JSC (Kazakhstan), 144a, 5.750%, 4/19/47 | 396,726 | ||||||
238,000 | Montage Resources Corp., 8.875%, 7/15/23 | 160,650 | ||||||
701,000 | NGPL PipeCo LLC, 144a, 7.768%, 12/15/37 | 697,855 | ||||||
441,000 | NuStar Logistics LP, 5.625%, 4/28/27 | 339,041 | ||||||
324,000 | PDC Energy, Inc., 5.750%, 5/15/26 | 181,440 | ||||||
200,000 | Pertamina Persero PT (Indonesia), 144a, 6.450%, 5/30/44 | 217,900 | ||||||
200,000 | Petrobras Global Finance BV (Brazil), 6.850%, 6/5/15 | 189,000 | ||||||
200,000 | Petrobras Global Finance BV (Brazil), 6.900%, 3/19/49 | 194,250 | ||||||
350,000 | Petrobras Global Finance BV (Brazil), 7.375%, 1/17/27 | 358,673 | ||||||
200,000 | Petroleos del Peru SA (Peru), 144a, 4.750%, 6/19/32 | 182,002 | ||||||
200,000 | Petroleos del Peru SA (Peru), 144a, 5.625%, 6/19/47 | 181,252 | ||||||
914,000 | Petroleos Mexicanos (Mexico), 144a, 6.840%, 1/23/30 | 661,297 | ||||||
181,000 | Petroleos Mexicanos (Mexico), 144a, 7.690%, 1/23/50 | 124,890 | ||||||
200,000 | Saudi Arabian Oil Co. (Saudi Arabia), 144a, 4.250%, 4/16/39 | 198,018 | ||||||
378,000 | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., 144a, 5.500%, 9/15/24 | 207,900 | ||||||
403,000 | TerraForm Power Operating LLC, 144a, 4.750%, 1/15/30 | 390,910 | ||||||
350,000 | YPF SA (Argentina), 144a, 6.950%, 7/21/27 | 180,355 | ||||||
11,287,404 | ||||||||
Consumer Discretionary — 3.3% | ||||||||
271,000 | 1011778 BC ULC / New Red Finance, Inc. (Canada), 144a, 5.000%, 10/15/25 | 258,802 | ||||||
184,000 | Adient US LLC, 144a, 7.000%, 5/15/26 | 170,200 | ||||||
1,267,000 | Ashtead Capital, Inc. (United Kingdom), 144a, 4.375%, 8/15/27 | 1,171,975 | ||||||
328,000 | Avis Budget Car Rental LLC / Avis Budget Finance, Inc., 144a, 5.250%, 3/15/25 | 257,513 | ||||||
221,000 | Beacon Roofing Supply, Inc., 144a, 4.875%, 11/1/25 | 199,453 | ||||||
480,000 | Ford Motor Credit Co. LLC, 4.542%, 8/1/26 | 420,000 | ||||||
430,000 | Ford Motor Credit Co. LLC, 5.584%, 3/18/24 | 408,500 | ||||||
555,000 | General Motors Financial Co., Inc., 4.350%, 4/9/25 | 481,522 | ||||||
557,000 | Home Depot, Inc. (The), 5.950%, 4/1/41 | 778,550 | ||||||
1,068,000 | Hyundai Capital America, 144a, 2.650%, 2/10/25 | 1,017,506 | ||||||
426,000 | JB Poindexter & Co., Inc., 144a, 7.125%, 4/15/26 | 394,227 | ||||||
396,000 | Lennar Corp., 4.750%, 4/1/21 | 392,040 | ||||||
1,100,000 | Lowe's Cos, Inc., 4.500%, 4/15/30 | 1,212,227 | ||||||
1,026,000 | Marriott International, Inc., 2.125%, 10/3/22 | 923,430 | ||||||
154,000 | Meritage Homes Corp., 6.000%, 6/1/25 | 142,065 | ||||||
365,000 | NIKE, Inc., 3.375%, 3/27/50 | 398,179 | ||||||
239,000 | Quad/Graphics, Inc., 7.000%, 5/1/22 | 197,175 | ||||||
386,000 | Taylor Morrison Communities, Inc. / Taylor Morrison Holdings II, Inc., 144a, 5.625%, 3/1/24 | 362,840 | ||||||
347,000 | United Rentals North America, Inc., 5.875%, 9/15/26 | 351,442 |
8
Touchstone Active Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 40.3% (Continued) | ||||||||
Consumer Discretionary — (Continued) | ||||||||
$ | 909,000 | Walmart, Inc., 2.850%, 7/8/24 | $ | 955,618 | ||||
38,000 | Wyndham Hotels & Resorts, Inc., 144a, 5.375%, 4/15/26 | 33,060 | ||||||
10,526,324 | ||||||||
Industrials — 3.3% | ||||||||
710,000 | 3M Co., 2.650%, 4/15/25 | 731,495 | ||||||
47,000 | AECOM Global II LLC / URS Fox US LP, 5.000%, 4/1/22 | 43,710 | ||||||
247,000 | Amsted Industries, Inc., 144a, 5.625%, 7/1/27 | 240,310 | ||||||
132,000 | Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc., 144a, 6.000%, 2/15/25 | 132,370 | ||||||
776,000 | Burlington Northern Santa Fe LLC, 5.750%, 5/1/40 | 988,164 | ||||||
403,000 | Cascades, Inc./Cascades USA, Inc. (Canada), 144a, 5.375%, 1/15/28 | 384,865 | ||||||
1,021,000 | CRH America Finance, Inc. (Ireland), 144a, 4.500%, 4/4/48 | 956,714 | ||||||
1,420,000 | Eagle Materials, Inc., 4.500%, 8/1/26 | 1,298,943 | ||||||
369,000 | Embraer Netherlands Finance BV (Brazil), 5.050%, 6/15/25 | 325,643 | ||||||
363,000 | Embraer Netherlands Finance BV (Brazil), 5.400%, 2/1/27 | 319,807 | ||||||
893,000 | FedEx Corp., 5.100%, 1/15/44 | 885,800 | ||||||
449,000 | Fortress Transportation & Infrastructure Investors LLC, 144a, 6.750%, 3/15/22 | 415,581 | ||||||
1,170,000 | John Deere Capital Corp. MTN, 2.450%, 1/9/30 | 1,181,109 | ||||||
192,000 | Moog, Inc., 144a, 4.250%, 12/15/27 | 173,280 | ||||||
166,000 | New Enterprise Stone & Lime Co., Inc., 144a, 6.250%, 3/15/26 | 152,720 | ||||||
644,000 | Norfolk Southern Corp., 4.837%, 10/1/41 | 753,378 | ||||||
263,000 | Plastipak Holdings, Inc., 144a, 6.250%, 10/15/25 | 235,385 | ||||||
160,000 | TransDigm, Inc., 144a, 6.250%, 3/15/26 | 159,400 | ||||||
375,000 | Transnet SOC Ltd. (South Africa), 144a, 4.000%, 7/26/22 | 356,250 | ||||||
200,000 | Trivium Packaging Finance BV (Netherlands), 144a, 5.500%, 8/15/26 | 199,000 | ||||||
280,000 | Vulcan Materials Co., 4.500%, 4/1/25 | 294,212 | ||||||
10,228,136 | ||||||||
Utilities — 3.0% | ||||||||
584,000 | American Water Capital Corp., 6.593%, 10/15/37 | 832,328 | ||||||
472,000 | DPL, Inc., 144a, 4.350%, 4/15/29 | 448,647 | ||||||
1,090,000 | DTE Energy Co. Ser D, 3.700%, 8/1/23 | 1,098,555 | ||||||
712,000 | Duke Energy Progress LLC, 4.150%, 12/1/44 | 799,902 | ||||||
707,000 | Edison International, 4.125%, 3/15/28 | 676,216 | ||||||
922,000 | Electricite de France SA (France), 144a, 4.500%, 9/21/28 | 1,015,140 | ||||||
200,000 | Eskom Holdings SOC Ltd. (South Africa), 144a,7.125%, 2/11/25 | 143,861 | ||||||
365,000 | Florida Power & Light Co., 2.850%, 4/1/25 | 380,549 | ||||||
200,000 | Genneia SA (Argentina), 144a, 8.750%, 1/20/22 | 116,600 | ||||||
656,000 | Oncor Electric Delivery Co. LLC, 3.800%, 9/30/47 | 656,459 | ||||||
853,000 | PacifiCorp., 5.750%, 4/1/37 | 1,106,066 | ||||||
200,000 | Perusahaan Listrik Negara PT (Indonesia), 144a,4.875%, 7/17/49 | 191,000 | ||||||
233,000 | Talen Energy Supply LLC, 144a, 7.250%, 5/15/27 | 210,562 | ||||||
709,000 | Virginia Electric & Power Co., 3.300%, 12/1/49 | 707,929 | ||||||
1,347,000 | WEC Energy Group, Inc., (3M LIBOR +2.113%), 3.804%, 5/15/67(A) | 1,082,686 | ||||||
9,466,500 | ||||||||
Real Estate — 2.4% | ||||||||
660,000 | American Homes 4 Rent LP REIT, 4.250%, 2/15/28 | 654,033 | ||||||
881,000 | Boston Properties LP REIT, 3.200%, 1/15/25 | 889,105 | ||||||
283,000 | CoreCivic, Inc. REIT, 5.000%, 10/15/22 | 266,905 | ||||||
966,000 | Crown Castle International Corp. REIT, 3.650%, 9/1/27 | 978,327 | ||||||
824,000 | Equinix, Inc. REIT, 2.900%, 11/18/26 | 754,632 | ||||||
198,000 | GEO Group, Inc. (The) REIT, 5.875%, 1/15/22 | 178,200 | ||||||
172,000 | GLP Capital LP / GLP Financing II, Inc. REIT, 5.375%, 4/15/26 | 152,461 | ||||||
1,106,000 | Healthcare Realty Trust, Inc. REIT, 2.400%, 3/15/30 | 980,785 | ||||||
507,000 | Iron Mountain US Holdings, Inc. REIT, 144a, 5.375%, 6/1/26 | 512,070 | ||||||
291,000 | MGM Growth Properties Operating Partnership LP / MGP Finance Co.-Issuer, Inc. REIT, 5.625%, 5/1/24 | 279,360 | ||||||
453,000 | Mid-America Apartments LP REIT, 3.750%, 6/15/24 | 446,319 | ||||||
283,000 | MPT Operating Partnership LP / MPT Finance Corp. REIT, 5.250%, 8/1/26 | 277,641 | ||||||
691,000 | Sabra Health Care LP REIT, 5.125%, 8/15/26 | 653,454 | ||||||
710,000 | STORE Capital Corp. REIT, 4.625%, 3/15/29 | 672,983 | ||||||
7,696,275 | ||||||||
Information Technology — 2.3% | ||||||||
964,000 | Adobe, Inc., 1.900%, 2/1/25 | 972,390 | ||||||
779,000 | Apple, Inc., 2.750%, 1/13/25 | 821,658 | ||||||
629,000 | Apple, Inc., 4.650%, 2/23/46 | 834,239 | ||||||
1,020,000 | Fiserv, Inc., 3.500%, 7/1/29 | 1,060,995 | ||||||
960,000 | Global Payments, Inc., 2.650%, 2/15/25 | 942,539 | ||||||
462,000 | Microsoft Corp., 3.500%, 2/12/35 | 543,310 | ||||||
852,000 | NXP BV / NXP Funding LLC (Netherlands), 144a, 5.350%, 3/1/26 | 921,184 | ||||||
246,000 | SS&C Technologies, Inc., 144a, 5.500%, 9/30/27 | 256,384 | ||||||
624,000 | Visa, Inc., 4.150%, 12/14/35 | 780,656 | ||||||
139,000 | Western Digital Corp., 4.750%, 2/15/26 | 141,085 | ||||||
7,274,440 | ||||||||
Materials — 1.8% | ||||||||
261,000 | Alcoa Nederland Holding BV, 144a, 6.750%, 9/30/24 | 253,092 | ||||||
380,000 | Alcoa Nederland Holding BV, 144a, 7.000%, 9/30/26 | 353,400 | ||||||
667,000 | Braskem America Finance Co. (Brazil), 144a, 7.125%, 7/22/41 | 588,627 | ||||||
200,000 | Braskem Netherlands Finance BV (Brazil), 144a, 4.500%, 1/10/28 | 159,852 | ||||||
300,000 | Cemex SAB de CV (Mexico), 144a, 5.450%, 11/19/29 | 244,800 | ||||||
142,000 | Commercial Metals Co., 5.750%, 4/15/26 | 132,542 | ||||||
200,000 | Corp. Nacional del Cobre de Chile (Chile), 144a, 4.500%, 9/16/25 | 206,410 | ||||||
172,000 | CVR Partners LP / CVR Nitrogen Finance Corp., 144a, 9.250%, 6/15/23 | 137,892 | ||||||
732,000 | Ecolab, Inc., 4.800%, 3/24/30 | 822,245 | ||||||
121,000 | FMG Resources August 2006 Pty Ltd. (Australia), 144a, 4.750%, 5/15/22 | 120,546 | ||||||
301,000 | Freeport-McMoRan, Inc., 3.875%, 3/15/23 | 284,445 | ||||||
388,000 | Freeport-McMoRan, Inc., 5.000%, 9/1/27 | 360,239 | ||||||
297,000 | Hudbay Minerals, Inc. (Canada), 144a, 7.625%, 1/15/25 | 258,390 | ||||||
300,000 | Industrias Penoles SAB de CV (Mexico), 144a, 5.650%, 9/12/49 | 262,317 | ||||||
200,000 | Metinvest BV (Ukraine), 144a, 7.750%, 10/17/29 | 133,040 | ||||||
167,000 | Novelis Corp., 144a, 5.875%, 9/30/26 | 163,888 | ||||||
211,000 | Nufarm Australia Ltd. / Nufarm Americas, Inc. (Australia), 144a, 5.750%, 4/30/26 | 182,515 |
9
Touchstone Active Bond Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 40.3% (Continued) | ||||||||
Materials — (Continued) | ||||||||
$ | 789,000 | Sherwin-Williams Co. (The), 4.500%, 6/1/47 | $ | 844,283 | ||||
5,508,523 | ||||||||
Total Corporate Bonds | $ | 126,608,018 | ||||||
Asset-Backed Securities — 12.9% | ||||||||
2,199,027 | Adams Outdoor Advertising LP, Ser 2018-1, Class A, 144a, 4.810%, 11/15/48 | 2,192,872 | ||||||
1,450,000 | Apidos CLO XVIII (Cayman Islands), Ser 2018-18A, Class A1, 144a, (3M LIBOR +1.140%), 2.942%, 10/22/30(A) | 1,370,723 | ||||||
2,400,000 | Avis Budget Rental Car Funding AESOP LLC, Ser 2015-2A, Class B, 144a, 3.420%, 12/20/21 | 2,364,056 | ||||||
1,375,000 | Benefit Street Partners CLO XIX Ltd. (Cayman Islands), Ser 2019-19A, Class B, 144a, (3M LIBOR +2.000%), 3.878%, 1/15/33(A) | 1,187,666 | ||||||
825,000 | BSPRT Issuer Ltd. (Cayman Islands), Ser 2018-FL4, Class D, 144a, (1M LIBOR +2.750%), 3.455%, 9/15/35(A) | 642,374 | ||||||
1,505,000 | CIFC Funding Ltd. (Cayman Islands), Ser 2016-1A, Class A1R, 144a, (3M LIBOR +1.350%), 3.169%, 10/21/31(A) | 1,396,201 | ||||||
2,587 | CIT Home Equity Loan Trust, Ser 2002-1, Class AF5, 7.210%, 2/25/33(A)(B) | 2,528 | ||||||
2,917,500 | Coinstar Funding LLC, Ser 2017-1A, Class A2, 144a, 5.216%, 4/25/47 | 2,747,940 | ||||||
495,593 | Domino's Pizza Master Issuer LLC, Ser 2017-1A, Class A2II, 144a, 3.082%, 7/25/47 | 478,410 | ||||||
82,113 | FFMLT Trust, Ser 2005-FFA, Class M3, 6.017%, 3/25/25(A)(B) | 82,768 | ||||||
158,570 | FHLMC Structured Pass Through Securities, Ser T-20, Class A5, 7.870%, 12/25/29(A)(B) | 191,449 | ||||||
15,345 | FNMA REMIC Trust, Ser 2001-W2, Class AF6, 6.589%, 10/25/31(A)(B) | 16,394 | ||||||
3,350,000 | Hertz Vehicle Financing II LP, Ser 2016-4A, Class A, 144a, 2.650%, 7/25/22 | 3,241,924 | ||||||
2,000,000 | Hertz Vehicle Financing II LP, Ser 2019-1A, Class A, 144a, 3.710%, 3/25/23 | 1,941,240 | ||||||
1,645,875 | Jack In The Box Funding LLC, Ser 2019-1A, Class A2I, 144a, 3.982%, 8/25/49 | 1,520,311 | ||||||
970,000 | Jersey Mike's Funding, Ser 2019-1A, Class A2, 144a, 4.433%, 2/15/50 | 859,468 | ||||||
1,672,125 | Jimmy Johns Funding LLC, Ser 2017-1A, Class A2I, 144a, 3.610%, 7/30/47 | 1,651,575 | ||||||
1,450,000 | Kabbage Funding LLC, Ser 2019-1, Class A, 144a, 3.825%, 3/15/24 | 1,410,126 | ||||||
1,850,000 | Madison Park Funding XVIII Ltd. (Cayman Islands), Ser 2015-18A, Class BR, 144a, (3M LIBOR +1.600%), 3.419%, 10/21/30(A) | 1,685,341 | ||||||
1,505,000 | Madison Park Funding XXXV Ltd. (Cayman Islands), Ser 2019-35A, Class A2A, 144a, (3M LIBOR +1.650%), 3.469%, 4/20/31(A) | 1,403,983 | ||||||
500,000 | Merrill Lynch Mortgage Investors Trust, Ser 2006-FF1, Class M4, (1M LIBOR +0.370%), 1.317%, 8/25/36(A) | 493,776 | ||||||
1,038,223 | Mid-State Capital Corp. Trust, Ser 2005-1, Class M2, 7.079%, 1/15/40 | 1,096,863 | ||||||
1,375,000 | OHA Loan Funding Ltd. (Cayman Islands), Ser 2015-1A, Class B1R2, 144a, (3M LIBOR +1.900%), 3.592%, 11/15/32(A) | 1,221,341 | ||||||
167,367 | Orange Lake Timeshare Trust, Ser 2016-A, Class A, 144a, 2.610%, 3/8/29 | 164,107 | ||||||
700,000 | Towd Point Mortgage Trust, Ser 2015-3, Class A2, 144a, 4.000%, 3/25/54(A)(B) | 692,465 | ||||||
650,000 | Towd Point Mortgage Trust, Ser 2017-2, Class M1, 144a, 3.750%, 4/25/57(A)(B) | 611,594 | ||||||
2,510,607 | Towd Point Mortgage Trust, Ser 2019-1, Class A1, 144a, 3.750%, 3/25/58(A)(B) | 2,577,478 | ||||||
600,000 | Voya CLO Ltd. (Cayman Islands), Ser 2017-4A, Class A1, 144a, (3M LIBOR +1.130%), 2.961%, 10/15/30(A) | 571,126 | ||||||
1,505,000 | Voya CLO Ltd. (Cayman Islands), Ser 2019-2A, Class A, 144a, (3M LIBOR +1.270%), 3.089%, 7/20/32(A) | 1,408,319 | ||||||
3,250,188 | Wendys Funding LLC, Ser 2018-1A, Class A2I, 144a, 3.573%, 3/15/48 | 2,966,251 | ||||||
875,000 | Westlake Automobile Receivables Trust, Ser 2017-1A, Class E, 144a, 5.050%, 8/15/24 | 875,018 | ||||||
1,523,518 | Westlake Automobile Receivables Trust, Ser 2018-1A,Class C, 144a, 2.920%, 5/15/23 | 1,506,644 | ||||||
Total Asset-Backed Securities | $ | 40,572,331 | ||||||
U.S. Treasury Obligations — 12.9% | ||||||||
537,000 | U.S. Treasury Bond, 2.000%, 2/15/50 | 622,102 | ||||||
5,015,000 | U.S. Treasury Bond, 2.250%, 8/15/49 | 6,109,485 | ||||||
15,939,168 | U.S. Treasury Inflation Indexed Bond,0.250%, 2/15/50 | 16,426,173 | ||||||
7,850,000 | U.S. Treasury Note, 1.500%, 9/30/21 | 8,003,014 | ||||||
4,930,000 | U.S. Treasury Note, 1.500%, 10/31/24 | 5,184,781 | ||||||
3,900,000 | U.S. Treasury Note, 1.500%, 11/30/24 | 4,106,730 | ||||||
Total U.S. Treasury Obligations | $ | 40,452,285 | ||||||
Non-Agency Collateralized Mortgage Obligations — 8.1% | ||||||||
2,746 | Adjustable Rate Mortgage Trust, Ser 2004-4, Class 3A1, 3.730%, 3/25/35(A)(B) | 2,495 | ||||||
2,061,824 | Agate Bay Mortgage Trust, Ser 2015-7, Class B1, 144a, 3.752%, 10/25/45(A)(B) | 1,969,981 | ||||||
3,213,232 | Agate Bay Mortgage Trust, Ser 2015-7, Class B2, 144a, 3.752%, 10/25/45(A)(B) | 3,038,180 | ||||||
5,839 | CSFB Mortgage-Backed Trust, Ser 2004-7, Class 6A1, 5.250%, 10/25/19 | 5,874 | ||||||
1,381,276 | CSMC Trust, Ser 2013-7, Class B3, 144a, 3.573%, 8/25/43(A)(B) | 1,291,985 | ||||||
1,374,238 | CSMC Trust, Ser 2014-OAK1, Class B4, 144a, 3.744%, 11/25/44(A)(B) | 1,294,101 | ||||||
2,057,651 | CSMC Trust, Ser 2015-1, Class B3, 144a, 3.938%, 1/25/45(A)(B) | 1,899,971 | ||||||
1,976,228 | CSMC Trust, Ser 2015-2, Class B4, 144a, 3.922%, 2/25/45(A)(B) | 1,784,033 | ||||||
2,065,282 | CSMC Trust, Ser 2015-WIN1, Class B3, 144a, 3.867%, 12/25/44(A)(B) | 1,928,543 | ||||||
1,171,038 | CSMC Trust, Ser 2018-RPL9, Class A, 144a, 3.850%, 9/25/57(A)(B) | 1,179,910 | ||||||
346,394 | Galton Funding Mortgage Trust, Ser 2019-1, Class A22, 144a, 4.000%, 2/25/59(A)(B) | 344,245 | ||||||
43,055 | JP Morgan Mortgage Trust, Ser 2005-A1, Class 2A1, 3.787%, 2/25/35(A)(B) | 40,528 | ||||||
103,521 | JP Morgan Mortgage Trust, Ser 2005-A2, Class 7CB1, 5.141%, 4/25/35(A)(B) | 100,768 | ||||||
31,396 | JP Morgan Mortgage Trust, Ser 2006-A4, Class 2A2, 3.938%, 6/25/36(A)(B) | 24,865 | ||||||
1,768,414 | JP Morgan Mortgage Trust, Ser 2017-1, Class B2, 144a, 3.529%, 1/25/47(A)(B) | 1,622,916 |
10
Touchstone Active Bond Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Non-Agency Collateralized Mortgage Obligations — 8.1% (Continued) | ||||||||
$ | 19,086 | MASTR Alternative Loans Trust, Ser 2004-7, Class 10A1, 6.000%, 6/25/34 | $ | 20,076 | ||||
163,001 | Residential Asset Securitization Trust, Ser 2006-A1, Class 1A3, 6.000%, 4/25/36 | 104,621 | ||||||
260,440 | Sequoia Mortgage Trust, Ser 2013-1, Class B1, 3.651%, 2/25/43(A)(B) | 249,073 | ||||||
305,365 | Sequoia Mortgage Trust, Ser 2013-1, Class B2, 3.651%, 2/25/43(A)(B) | 291,527 | ||||||
503,872 | Sequoia Mortgage Trust, Ser 2013-10, Class B2, 144a, 3.557%, 8/25/43(A)(B) | 477,522 | ||||||
494,198 | Sequoia Mortgage Trust, Ser 2013-5, Class B1, 144a, 3.506%, 5/25/43(A)(B) | 469,384 | ||||||
1,040,665 | Sequoia Mortgage Trust, Ser 2014-2, Class B2, 144a, 4.073%, 7/25/44(A)(B) | 999,382 | ||||||
2,535,713 | Sequoia Mortgage Trust, Ser 2017-1, Class A4, 144a, 3.500%, 2/25/47(A)(B) | 2,550,514 | ||||||
2,694,349 | Sequoia Mortgage Trust, Ser 2017-2, Class A1, 144a, 3.500%, 2/25/47(A)(B) | 2,709,955 | ||||||
1,087,000 | Sequoia Mortgage Trust, Ser 2018-CH4, Class A13, 144a, 4.500%, 10/25/48(A)(B) | 1,058,465 | ||||||
79,630 | Washington Mutual Alternative Mortgage Pass-Through Certificates, Ser 2005-9, Class 2A4, 5.500%, 11/25/35 | 72,543 | ||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 25,531,457 | ||||||
U.S. Government Mortgage-Backed Obligations — 6.3% | ||||||||
136,172 | FHLMC, Pool #1Q0339, (12M LIBOR +1.917%), 4.882%, 4/1/37(A) | 138,125 | ||||||
13,261 | FHLMC, Pool #A12886, 5.000%, 8/1/33 | 14,673 | ||||||
54,343 | FHLMC, Pool #A13842, 6.000%, 9/1/33 | 60,218 | ||||||
9,647 | FHLMC, Pool #A21415, 5.000%, 5/1/34 | 10,664 | ||||||
18,050 | FHLMC, Pool #A35682, 5.000%, 7/1/35 | 20,056 | ||||||
10,796 | FHLMC, Pool #A36523, 5.000%, 8/1/35 | 11,992 | ||||||
33,257 | FHLMC, Pool #A46590, 5.000%, 8/1/35 | 35,859 | ||||||
6,146 | FHLMC, Pool #A64971, 5.500%, 8/1/37 | 6,952 | ||||||
2,891,107 | FHLMC, Pool #A89148, 4.000%, 10/1/39 | 3,125,630 | ||||||
102,793 | FHLMC, Pool #A96485, 4.500%, 1/1/41 | 112,585 | ||||||
528,775 | FHLMC, Pool #A97897, 4.500%, 4/1/41 | 586,189 | ||||||
17,439 | FHLMC, Pool #C62740, 7.000%, 1/1/32 | 20,041 | ||||||
16,981 | FHLMC, Pool #C72254, 6.500%, 7/1/32 | 19,736 | ||||||
48,261 | FHLMC, Pool #C90986, 7.000%, 6/1/26 | 52,633 | ||||||
16,604 | FHLMC, Pool #G02184, 5.000%, 4/1/36 | 18,467 | ||||||
2,863,183 | FHLMC, Pool #G05624, 4.500%, 9/1/39 | 3,133,065 | ||||||
267,450 | FHLMC, Pool #G05733, 5.000%, 11/1/39 | 296,603 | ||||||
116,911 | FHLMC, Pool #J13584, 3.500%, 11/1/25 | 123,085 | ||||||
45,882 | FNMA, Pool #255628, 5.500%, 2/1/25 | 50,146 | ||||||
11,233 | FNMA, Pool #426830, 8.000%, 11/1/24 | 11,411 | ||||||
7,510 | FNMA, Pool #540040, 7.500%, 6/1/28 | 7,533 | ||||||
13,636 | FNMA, Pool #561741, 7.500%, 1/1/31 | 15,871 | ||||||
27,304 | FNMA, Pool #640291, 7.000%, 8/1/32 | 27,815 | ||||||
28,938 | FNMA, Pool #653301, 6.500%, 7/1/32 | 32,068 | ||||||
39,658 | FNMA, Pool #653502, 6.500%, 7/1/32 | 43,949 | ||||||
27,087 | FNMA, Pool #670402, 6.500%, 6/1/32 | 30,920 | ||||||
142,221 | FNMA, Pool #745257, 6.000%, 1/1/36 | 163,743 | ||||||
63,655 | FNMA, Pool #748895, 6.000%, 12/1/33 | 68,190 | ||||||
50,462 | FNMA, Pool #758564, 6.000%, 9/1/24 | 55,811 | ||||||
60,293 | FNMA, Pool #810049, 5.500%, 3/1/35 | 66,016 | ||||||
100,155 | FNMA, Pool #819297, 6.000%, 9/1/35 | 115,225 | ||||||
712,585 | FNMA, Pool #881279, 5.000%, 11/1/36 | 801,731 | ||||||
29,013 | FNMA, Pool #889060, 6.000%, 1/1/38 | 33,369 | ||||||
71,541 | FNMA, Pool #889061, 6.000%, 1/1/38 | 82,654 | ||||||
7,734 | FNMA, Pool #895657, 6.500%, 8/1/36 | 8,785 | ||||||
145,147 | FNMA, Pool #905049, 5.500%, 11/1/36 | 159,110 | ||||||
446,784 | FNMA, Pool #928553, 5.500%, 8/1/37 | 509,980 | ||||||
821,016 | FNMA, Pool #931535, 5.500%, 7/1/39 | 917,987 | ||||||
195,483 | FNMA, Pool #AA3467, 4.500%, 4/1/39 | 213,966 | ||||||
304,962 | FNMA, Pool #AA4584, 4.500%, 4/1/39 | 333,820 | ||||||
77,026 | FNMA, Pool #AB1800, 4.000%, 11/1/40 | 83,581 | ||||||
184,792 | FNMA, Pool #AB2452, 4.000%, 3/1/26 | 194,880 | ||||||
55,343 | FNMA, Pool #AD3775, 4.500%, 3/1/25 | 58,900 | ||||||
89,831 | FNMA, Pool #AD6193, 5.000%, 6/1/40 | 99,567 | ||||||
140,825 | FNMA, Pool #AE1568, 4.000%, 9/1/40 | 152,224 | ||||||
498,288 | FNMA, Pool #AE2497, 4.500%, 9/1/40 | 552,181 | ||||||
59,087 | FNMA, Pool #AE5441, 5.000%, 10/1/40 | 65,493 | ||||||
235,455 | FNMA, Pool #AH1135, 5.000%, 1/1/41 | 260,980 | ||||||
99,007 | FNMA, Pool #AH3671, 4.000%, 2/1/26 | 104,158 | ||||||
438,137 | FNMA, Pool #AH6622, 4.000%, 3/1/41 | 481,849 | ||||||
513,239 | FNMA, Pool #AL0150, 4.000%, 2/1/41 | 556,748 | ||||||
102,153 | FNMA, Pool #AL0211, 5.000%, 4/1/41 | 113,223 | ||||||
3,192,932 | FNMA, Pool #AL5718, 3.500%, 9/1/44 | 3,423,032 | ||||||
622,003 | FNMA, Pool #AS0779, 4.000%, 10/1/43 | 681,676 | ||||||
55,185 | FNMA, Pool #AS7813, 4.000%, 8/1/46 | 59,555 | ||||||
1,339,868 | GNMA, Pool #4424, 5.000%, 4/20/39 | 1,482,818 | ||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 19,907,538 | ||||||
Commercial Mortgage-Backed Securities — 4.3% | ||||||||
2,500,000 | Austin Fairmont Hotel Trust, Ser 2019-FAIR, Class C, 144a, (1M LIBOR +1.450%), 2.155%, 9/15/32(A) | 1,983,295 | ||||||
500,000 | BANK, Ser 2018-BN14, Class A3, 3.966%, 9/15/60 | 554,388 | ||||||
1,321,051 | COMM Mortgage Trust, Ser 2014-CR14, Class A2, 3.147%, 2/10/47 | 1,319,793 | ||||||
580,000 | DBUBS Mortgage Trust, Ser 2017-BRBK, Class B, 144a, 3.530%, 10/10/34(A)(B) | 550,574 | ||||||
550,000 | Eleven Madison Trust Mortgage Trust, Ser 2015-11MD, Class C, 144a, 3.555%, 9/10/35(A)(B) | 491,807 | ||||||
1,189,000 | FREMF Mortgage Trust, Ser 2012-K23, Class C, 144a, 3.656%, 10/25/45(A)(B) | 1,161,143 | ||||||
595,000 | GS Mortgage Securities Corp. II, Ser 2017-SLP, Class B, 144a, 3.772%, 10/10/32 | 550,442 | ||||||
1,750,000 | GS Mortgage Securities Trust, Ser 2017-FARM, Class B, 144a, 3.541%, 1/10/43(A)(B) | 1,544,133 | ||||||
3,000,000 | Hudson Yards Mortgage Trust, Ser 2016-10HY, Class A, 144a, 2.835%, 8/10/38 | 3,070,744 | ||||||
528,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2016-NINE, Class B, 144a, 2.854%, 9/6/38(A)(B) | 530,096 | ||||||
1,200,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2018-MINN, Class A, 144a, (1M LIBOR +1.020%), 2.679%, 11/15/35(A) | 1,019,571 | ||||||
928,748 | Wells Fargo Commercial Mortgage Trust, Ser 2018-BXI, Class C, 144a, (1M LIBOR +1.156%), 1.861%, 12/15/36(A) | 815,050 | ||||||
Total Commercial Mortgage-Backed Securities | $ | 13,591,036 | ||||||
Sovereign Government Obligations — 3.5% | ||||||||
200,000 | Angolan Government International Bond, 9.375%, 5/8/48 | $ | 78,000 |
11
Touchstone Active Bond Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Sovereign Government Obligations — 3.5% (Continued) | ||||||||
$ | 200,000 | Angolan Government International Bond, 144a, 8.000%, 11/26/29 | $ | 81,000 | ||||
275,000 | Angolan Government International Bond, 144a, 8.250%, 5/9/28 | 110,772 | ||||||
250,000 | Argentine Republic Government International Bond,7.125%, 6/28/17 | 66,879 | ||||||
400,000 | Colombia Government International Bond, 4.000%, 2/26/24 | 405,004 | ||||||
521,000 | Colombia Government International Bond, 5.000%, 6/15/45 | 534,025 | ||||||
250,000 | Colombia Government International Bond, 6.125%, 1/18/41 | 287,345 | ||||||
200,000 | Costa Rica Government International Bond, 144a, 4.375%, 4/30/25 | 164,500 | ||||||
200,000 | Costa Rica Government International Bond, 144a, 5.625%, 4/30/43 | 144,000 | ||||||
200,000 | Dominican Republic International Bond, 144a, 5.875%, 4/18/24 | 197,000 | ||||||
150,000 | Dominican Republic International Bond, 144a, 5.950%, 1/25/27 | 141,738 | ||||||
100,000 | Dominican Republic International Bond, 144a, 6.850%, 1/27/45 | 91,750 | ||||||
200,000 | Ecuador Government International Bond, 144a, 7.875%, 1/23/28 | 54,844 | ||||||
250,000 | Ecuador Government International Bond, 144a, 9.500%, 3/27/30 | 73,750 | ||||||
350,000 | Egypt Government International Bond, 144a, 6.125%, 1/31/22 | 336,000 | ||||||
200,000 | Egypt Government International Bond, 144a, 7.500%, 1/31/27 | 181,481 | ||||||
400,000 | Egypt Government International Bond, 144a, 8.500%, 1/31/47 | 326,714 | ||||||
100,000 | El Salvador Government International Bond, 144a, 5.875%, 1/30/25 | 87,750 | ||||||
200,000 | El Salvador Government International Bond, 144a, 6.375%, 1/18/27 | 175,000 | ||||||
200,000 | Ghana Government International Bond, 144a, 8.950%, 3/26/51 | 140,086 | ||||||
300,000 | Indonesia Government International Bond, 144a, 3.850%, 7/18/27 | 302,165 | ||||||
200,000 | Israel Government International Bond, 4.500%, 4/3/20 | 200,000 | ||||||
200,000 | Ivory Coast Government International Bond, 144a,6.375%, 3/3/28 | 183,178 | ||||||
150,000 | Jamaica Government International Bond, 8.000%, 3/15/39 | 163,502 | ||||||
200,000 | Kenya Government International Bond, 144a, 7.250%, 2/28/28 | 184,902 | ||||||
200,000 | Lebanese Republic Government International Bond MTN, 6.650%, 2/26/30 | 36,008 | ||||||
200,000 | Mexico Government International Bond, 4.125%, 1/21/26 | 205,002 | ||||||
490,000 | Mexico Government International Bond, 4.500%, 1/31/50 | 484,370 | ||||||
200,000 | Mongolia Government International Bond, 144a, 5.625%, 5/1/23 | 177,994 | ||||||
200,000 | Nigeria Government International Bond, 5.625%, 6/27/22 | 172,500 | ||||||
400,000 | Nigeria Government International Bond, 144a, 7.875%, 2/16/32 | 280,000 | ||||||
250,000 | Oman Government International Bond, 144a, 4.125%, 1/17/23 | 208,125 | ||||||
200,000 | Oman Government International Bond, 144a, 5.375%, 3/8/27 | 143,000 | ||||||
300,000 | Pakistan Government International Bond, 144a, 7.875%, 3/31/36 | 259,680 | ||||||
200,000 | Panama Government International Bond, 3.750%, 3/16/25 | 207,502 | ||||||
200,000 | Panama Government International Bond, 4.500%, 4/1/56 | 216,500 | ||||||
200,000 | Paraguay Government International Bond, 144a, 4.625%, 1/25/23 | 200,002 | ||||||
300,000 | Perusahaan Penerbit SBSN Indonesia III, 144a, 4.350%, 9/10/24 | 303,813 | ||||||
300,000 | Province of Santa Fe (Argentina), 144a, 7.000%, 3/23/23 | 180,000 | ||||||
200,000 | Qatar Government International Bond, 144a, 4.000%, 3/14/29 | 213,856 | ||||||
500,000 | Republic of Azerbaijan International Bond, 144a, 4.750%, 3/18/24 | 486,546 | ||||||
200,000 | Republic of Belarus International Bond, 144a, 6.875%, 2/28/23 | 195,008 | ||||||
300,000 | Republic of South Africa Government International Bond, 4.850%, 9/27/27 | 262,955 | ||||||
200,000 | Republic of South Africa Government International Bond, 5.750%, 9/30/49 | 145,000 | ||||||
375,000 | Sri Lanka Government International Bond, 144a, 6.125%, 6/3/25 | 221,239 | ||||||
350,000 | Turkey Government International Bond, 4.875%, 4/16/43 | 243,250 | ||||||
400,000 | Turkey Government International Bond, 5.125%, 3/25/22 | 386,760 | ||||||
200,000 | Ukraine Government International Bond, 7.750%, 9/1/26 | 183,500 | ||||||
400,000 | Ukraine Government International Bond, 144a, 7.375%, 9/25/32 | 362,000 | ||||||
375,000 | Ukraine Government International Bond, 144a, 7.750%, 9/1/21 | 360,000 | ||||||
200,000 | Uruguay Government International Bond, 4.375%, 1/23/31 | 217,252 | ||||||
Total Sovereign Government Obligations | $ | 11,063,247 | ||||||
Agency Collateralized Mortgage Obligations — 3.5% | ||||||||
4,076,526 | FHLMC REMIC, Ser 3331, Class PE, 6.000%, 6/15/37 | 4,763,492 | ||||||
1,143,655 | FHLMC REMIC, Ser 3859, Class JB, 5.000%, 5/15/41 | 1,333,288 | ||||||
204,183 | FNMA REMIC, Ser 2003-32, Class BZ, 6.000%, 11/25/32 | 238,118 | ||||||
844,782 | FNMA REMIC, Ser 2012-47, Class AI, 3.000%, 5/25/22(C) | 19,914 | ||||||
65,729 | FNMA REMIC, Ser 2015-51, Class KC, 3.000%, 6/25/45 | 70,018 | ||||||
714,747 | FNMA REMIC, Ser 2017-90, Class KA, 3.000%, 11/25/47 | 760,687 | ||||||
82,709 | FNMA Trust, Ser 2004-W15, Class 2AF, (1M LIBOR+0.250%), 1.197%, 8/25/44(A) | 82,235 | ||||||
2,022,584 | GNMA, Ser 2010-169, Class AW, 4.500%, 12/20/40 | 2,234,906 | ||||||
7,710,545 | GNMA, Ser 2012-147, Class IO, 0.560%, 4/16/54(A)(B)(C) | 235,640 | ||||||
3,813,013 | GNMA, Ser 2016-113, Class IO, 1.152%, 2/16/58(A)(B)(C) | 288,522 | ||||||
16,336,354 | GNMA, Ser 2016-140, Class IO, 0.918%, 5/16/58(A)(B)(C) | 988,412 | ||||||
Total Agency Collateralized Mortgage Obligations | $ | 11,015,232 |
12
Touchstone Active Bond Fund(Unaudited) (Continued)
Market | ||||||
Shares | Value | |||||
Short-Term Investment Fund — 5.0% | ||||||
15,808,953 | Dreyfus Government Cash Management, Institutional Shares, 0.29%∞Ω | $ | 15,808,953 | |||
Total Investment Securities —96.8% | ||||||
(Cost $310,363,855) | $ | 304,550,097 | ||||
Other Assets in | ||||||
Excess of Liabilities — 3.2% | 10,105,948 | |||||
Net Assets — 100.0% | $ | 314,656,045 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2020. |
(B) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(C) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
CLO - Collateralized Loan Obligation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company LP - Limited Partnership
MTN - Medium Term Note PLC - Public Limited Company
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2020, these securities were valued at $121,745,964 or 38.7% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Corporate Bonds | $ | — | $ | 126,608,018 | $ | — | $ | 126,608,018 | ||||||||
Asset-Backed Securities | — | 40,572,331 | — | 40,572,331 | ||||||||||||
U.S. Treasury Obligations | — | 40,452,285 | — | 40,452,285 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 25,531,457 | — | 25,531,457 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 19,907,538 | — | 19,907,538 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 13,591,036 | — | 13,591,036 | ||||||||||||
Sovereign Government Obligations | — | 11,063,247 | — | 11,063,247 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 11,015,232 | — | 11,015,232 | ||||||||||||
Short-Term Investment Fund | 15,808,953 | — | — | 15,808,953 | ||||||||||||
Total Assets | $ | 15,808,953 | $ | 288,741,144 | $ | — | $ | 304,550,097 |
See accompanying Notes to Financial Statements.
13
Touchstone Anti-Benchmark®International Core Equity Fund– March 31, 2020 (Unaudited)
Market | |||||
Shares | Value | ||||
Common Stocks — 98.8% | |||||
Japan — 30.5% | |||||
Communication Services — 7.3% | |||||
Capcom Co. Ltd. | 4,300 | $ | 134,826 | ||
DeNA Co. Ltd. | 19,800 | 216,878 | |||
Fuji Media Holdings, Inc. | 6,500 | 64,562 | |||
KDDI Corp. | 19,200 | 567,141 | |||
Nexon Co. Ltd. | 20,900 | 341,524 | |||
Nippon Telegraph & Telephone Corp. | 17,200 | 411,366 | |||
NTT DOCOMO, Inc. | 16,000 | 500,370 | |||
Z Holdings Corp. | 41,800 | 133,265 | |||
Consumer Discretionary — 10.2% | |||||
ABC-Mart, Inc. | 8,200 | 410,396 | |||
Asics Corp. | 27,700 | 255,772 | |||
Bandai Namco Holdings, Inc. | 6,900 | 334,672 | |||
K's Holdings Corp. | 37,400 | 353,424 | |||
Pan Pacific International Holdings Corp. | 21,300 | 403,365 | |||
Shimamura Co. Ltd. | 3,400 | 205,475 | |||
Skylark Holdings Co. Ltd. | 29,300 | 434,371 | |||
Subaru Corp. | 9,500 | 181,593 | |||
Sushiro Global Holdings Ltd. | 12,000 | 175,919 | |||
Suzuki Motor Corp. | 8,500 | 202,395 | |||
Yamada Denki Co. Ltd. | 92,200 | 367,235 | |||
Consumer Staples — 6.8% | |||||
Ain Holdings, Inc. | 9,200 | 540,777 | |||
Coca-Cola Bottlers Japan Holdings, Inc. | 9,400 | 192,921 | |||
Ezaki Glico Co. Ltd. | 9,000 | 376,896 | |||
FamilyMart Co. Ltd. | 16,400 | 294,477 | |||
Lawson, Inc. | 10,400 | 570,854 | |||
NH Foods Ltd. | 1,100 | 38,281 | |||
Yamazaki Baking Co. Ltd. | 9,600 | 200,090 | |||
Energy — 0.5% | |||||
Idemitsu Kosan Co. Ltd. | 6,500 | 148,354 | |||
Financials — 0.9% | |||||
Japan Post Insurance Co. Ltd. | 24,300 | 300,228 | |||
Health Care — 3.2% | |||||
Nihon Kohden Corp. | 15,600 | 589,139 | |||
Olympus Corp. | 15,000 | 216,230 | |||
Sumitomo Dainippon Pharma Co. Ltd. | 17,800 | 231,069 | |||
Industrials — 0.9% | |||||
Hoshizaki Corp. | 4,100 | 306,687 | |||
Utilities — 0.7% | |||||
Kansai Electric Power Co., Inc. (The) | 19,700 | 219,279 | |||
Total Japan | 9,919,831 | ||||
Hong Kong — 8.1% | |||||
Communication Services — 1.3% | |||||
PCCW Ltd. | 797,000 | 437,048 | |||
Consumer Discretionary — 0.8% | |||||
Yue Yuen Industrial Holdings Ltd. | 161,000 | 246,024 | |||
Consumer Staples — 1.7% | |||||
Sun Art Retail Group Ltd. | 286,000 | 420,744 | |||
Vitasoy International Holdings Ltd.† | 28,000 | 84,263 | |||
WH Group Ltd., 144a | 64,500 | 59,534 | |||
Industrials — 2.0% | |||||
Jardine Matheson Holdings Ltd. | 9,100 | 458,021 | |||
Jardine Strategic Holdings Ltd. | 8,600 | 192,199 | |||
Information Technology — 0.5% | |||||
ASM Pacific Technology Ltd. | 17,300 | 160,411 | |||
Real Estate — 1.8% | |||||
Link REIT | 56,900 | 479,580 | |||
Swire Properties Ltd. | 33,000 | 92,194 | |||
Total Hong Kong | 2,630,018 | ||||
United Kingdom — 6.9% | |||||
Communication Services — 0.5% | |||||
Pearson PLC | 25,234 | 172,753 | |||
Consumer Discretionary — 1.2% | |||||
Compass Group PLC | 14,564 | 226,909 | |||
Next PLC | 3,414 | 171,276 | |||
Consumer Staples — 1.9% | |||||
J Sainsbury PLC | 95,401 | 246,841 | |||
Unilever NV | 7,291 | 360,288 | |||
Financials — 1.1% | |||||
IG Group Holdings PLC | 42,791 | 367,164 | |||
Health Care — 0.4% | |||||
ConvaTec Group PLC, 144a | 53,209 | 122,341 | |||
Industrials — 0.3% | |||||
easyJet PLC | 13,353 | 92,530 | |||
Information Technology — 0.4% | |||||
Micro Focus International PLC | 24,694 | 121,855 | |||
Utilities — 1.1% | |||||
Centrica PLC | 315,882 | 148,841 | |||
United Utilities Group PLC | 17,779 | 199,017 | |||
Total United Kingdom | 2,229,815 | ||||
Germany — 6.5% | |||||
Consumer Discretionary — 2.3% | |||||
adidas AG | 1,620 | 359,684 | |||
Puma SE | 2,249 | 132,140 | |||
Zalando SE, 144a* | 7,114 | 268,128 | |||
Health Care — 0.5% | |||||
Carl Zeiss Meditec AG | 1,624 | 154,638 | |||
Industrials — 0.2% | |||||
Deutsche Lufthansa AG | 7,009 | 65,556 | |||
Information Technology — 0.3% | |||||
Wirecard AG | 836 | 94,192 | |||
Real Estate — 3.2% | |||||
Deutsche Wohnen SE | 14,220 | 538,920 | |||
Vonovia SE | 10,413 | 515,195 | |||
Total Germany | 2,128,453 | ||||
Australia — 6.4% | |||||
Consumer Discretionary — 1.1% | |||||
Domino's Pizza Enterprises Ltd.† | 11,270 | 348,923 | |||
Consumer Staples — 0.2% | |||||
Treasury Wine Estates Ltd. | 8,026 | 49,830 | |||
Financials — 0.4% | |||||
nib holdings Ltd. | 45,855 | 144,694 | |||
Information Technology — 0.2% | |||||
Link Administration Holdings Ltd. | 28,705 | 56,679 | |||
Materials — 3.6% | |||||
Evolution Mining Ltd. | 125,890 | 294,222 | |||
Newcrest Mining Ltd. | 27,500 | 377,650 | |||
Northern Star Resources Ltd. | 38,291 | 248,049 | |||
Saracen Mineral Holdings Ltd.* | 114,128 | 256,640 | |||
Utilities — 0.9% | |||||
APA Group | 45,625 | 289,525 | |||
Total Australia | 2,066,212 |
14
Touchstone Anti-Benchmark®International Core Equity Fund(Unaudited) (Continued)
Market | ||||||
Shares | Value | |||||
Common Stocks — 98.8% (Continued) | ||||||
Denmark — 6.0% | ||||||
Consumer Discretionary — 0.6% | ||||||
Pandora A/S | 5,807 | $ | 186,585 | |||
Consumer Staples — 1.3% | ||||||
Royal Unibrew A/S | 5,994 | 430,862 | ||||
Health Care — 3.1% | ||||||
Ambu A/S - Class B | 9,565 | 230,341 | ||||
Ascendis Pharma A/S ADR* | 1,691 | 190,424 | ||||
Coloplast A/S - Class B | 616 | 89,336 | ||||
Genmab A/S* | 613 | 123,132 | ||||
Novo Nordisk A/S - Class B | 6,366 | 380,153 | ||||
Industrials — 0.3% | ||||||
ISS A/S* | 6,595 | 90,223 | ||||
Utilities — 0.7% | ||||||
Orsted A/S, 144a | 2,396 | 234,563 | ||||
Total Denmark | 1,955,619 | |||||
Switzerland — 4.8% | ||||||
Communication Services — 1.0% | ||||||
Sunrise Communications Group AG, 144a | 4,204 | 336,960 | ||||
Consumer Staples — 1.9% | ||||||
Chocoladefabriken Lindt & Spruengli AG | 53 | 444,854 | ||||
Chocoladefabriken Lindt & Spruengli AG | 2 | 173,588 | ||||
Real Estate — 1.9% | ||||||
PSP Swiss Property AG | 3,858 | 482,440 | ||||
Swiss Prime Site AG | 1,390 | 135,289 | ||||
Total Switzerland | 1,573,131 | |||||
Finland — 4.3% | ||||||
Communication Services — 1.8% | ||||||
Elisa Oyj | 9,138 | 564,029 | ||||
Energy — 0.6% | ||||||
Neste Oyj | 6,138 | 204,074 | ||||
Health Care — 1.3% | ||||||
Orion Oyj - Class B | 10,549 | 429,305 | ||||
Information Technology — 0.6% | ||||||
Nokia Oyj | 66,822 | 205,802 | ||||
Total Finland | 1,403,210 | |||||
Netherlands — 3.8% | ||||||
Consumer Discretionary — 0.9% | ||||||
Just Eat Takeaway, 144a* | 3,122 | 236,552 | ||||
Just Eat Takeaway, 144a* | 717 | 53,969 | ||||
Consumer Staples — 1.5% | ||||||
Koninklijke Ahold Delhaize NV | 21,424 | 499,106 | ||||
Energy — 0.3% | ||||||
SBM Offshore NV | 7,155 | 95,011 | ||||
Health Care — 0.4% | ||||||
QIAGEN N.V.* | 3,043 | 122,868 | ||||
Industrials — 0.7% | ||||||
Signify NV, 144a | 12,581 | 243,823 | ||||
Total Netherlands | 1,251,329 | |||||
Sweden — 3.3% | ||||||
Consumer Discretionary — 0.5% | ||||||
Hennes & Mauritz AB - Class B | 13,535 | 173,205 | ||||
Consumer Staples — 1.9% | ||||||
ICA Gruppen AB | 14,582 | 609,023 | ||||
Health Care — 0.9% | ||||||
Elekta AB - Class B | 34,474 | 281,045 | ||||
Total Sweden | 1,063,273 | |||||
France — 2.7% | ||||||
Communication Services — 1.5% | ||||||
Eutelsat Communications SA | 27,052 | 281,210 | ||||
Publicis Groupe SA | 7,366 | 210,512 | ||||
Consumer Staples — 0.8% | ||||||
Carrefour SA | 16,932 | 268,445 | ||||
Financials — 0.4% | ||||||
SCOR SE | 5,098 | 112,162 | ||||
Total France | 872,329 | |||||
Belgium — 2.7% | ||||||
Consumer Staples — 2.0% | ||||||
Colruyt SA | 11,781 | 638,623 | ||||
Health Care — 0.7% | ||||||
UCB SA | 2,696 | 230,676 | ||||
Total Belgium | 869,299 | |||||
Israel — 2.6% | ||||||
Financials — 0.8% | ||||||
Bank Leumi Le-Israel BM | 48,389 | 266,815 | ||||
Health Care — 0.3% | ||||||
Teva Pharmaceutical Industries Ltd.* | 10,400 | 92,415 | ||||
Information Technology — 1.5% | ||||||
Nice Ltd.* | 3,473 | 502,181 | ||||
Total Israel | 861,411 | |||||
Ireland — 2.1% | ||||||
Consumer Staples — 1.4% | ||||||
Kerry Group PLC - Class A | 3,927 | 455,630 | ||||
Health Care — 0.1% | ||||||
Amarin Corp. PLC ADR* | 5,200 | 20,800 | ||||
Materials — 0.6% | ||||||
James Hardie Industries PLC | 18,137 | 210,584 | ||||
Total Ireland | 687,014 | |||||
Spain — 2.0% | ||||||
Utilities — 2.0% | ||||||
Endesa SA | 5,259 | 111,283 | ||||
Red Electrica Corp. SA | 29,177 | 524,296 | ||||
Total Spain | 635,579 | |||||
New Zealand — 1.9% | ||||||
Communication Services — 1.4% | ||||||
Spark New Zealand Ltd. | 191,186 | 465,302 | ||||
Consumer Staples — 0.5% | ||||||
a2 Milk Co. Ltd.* | 15,524 | 158,587 | ||||
Total New Zealand | 623,889 | |||||
Norway — 1.6% | ||||||
Consumer Staples — 1.6% | ||||||
Mowi ASA | 22,795 | 344,648 | ||||
Orkla ASA | 22,014 | 188,610 | ||||
Total Norway | 533,258 | |||||
Italy — 0.9% | ||||||
Financials — 0.9% | ||||||
Unione di Banche Italiane SpA | 111,096 | 287,645 | ||||
Singapore — 0.8% | ||||||
Communication Services — 0.6% | ||||||
Sea Ltd. ADR* | 4,339 | 192,261 |
15
Touchstone Anti-Benchmark®International Core Equity Fund (Unaudited) (Continued)
Market | ||||||
Shares | Value | |||||
Common Stocks — 98.8% (Continued) | ||||||
Singapore — (Continued) | ||||||
Industrials — 0.2% | ||||||
SATS Ltd. | 33,700 | $ | 74,911 | |||
Total Singapore | 267,172 | |||||
Luxembourg — 0.7% | ||||||
Communication Services — 0.5% | ||||||
SES SA | 26,351 | 154,586 | ||||
Real Estate — 0.2% | ||||||
Aroundtown SA | 15,459 | 77,379 | ||||
Total Luxembourg | 231,965 | |||||
United States — 0.1% | ||||||
Industrials — 0.1% | ||||||
Reliance Worldwide Corp. Ltd. | 15,429 | 24,667 | ||||
Armenia — 0.1% | ||||||
Health Care — 0.1% | ||||||
NMC Health PLC | 15,156 | 22,967 | ||||
Total Common Stocks | $ | 32,138,086 | ||||
Short-Term Investment Funds — 2.0% | ||||||
Dreyfus Government Cash Management, Institutional Shares, 0.29%∞Ω | 241,023 | 241,023 | ||||
Invesco Government & Agency Portfolio, InstitutionalClass, 0.43%**∞Ω | 425,240 | 425,240 | ||||
Total Short-Term Investment Funds | $ | 666,263 | ||||
Total Investment Securities —100.8% | ||||||
(Cost $36,998,320) | $ | 32,804,349 | ||||
Liabilities in Excess of Other Assets — (0.8%) | (264,358 | ) | ||||
Net Assets — 100.0% | $ | 32,539,991 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2020 was $399,027. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2020, these securities were valued at $1,555,870 or 4.8% 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 | |||||||||||
Common Stocks | |||||||||||||||
Japan | $ | — | $ | 9,919,831 | $ | — | $ | 9,919,831 | |||||||
Hong Kong | — | 2,630,018 | — | 2,630,018 | |||||||||||
United Kingdom | 360,288 | 1,869,527 | — | 2,229,815 | |||||||||||
Germany | 515,195 | 1,613,258 | — | 2,128,453 | |||||||||||
Australia | 144,694 | 1,921,518 | — | 2,066,212 | |||||||||||
Denmark | 190,424 | 1,765,195 | — | 1,955,619 | |||||||||||
Switzerland | — | 1,573,131 | — | 1,573,131 | |||||||||||
Finland | — | 1,403,210 | — | 1,403,210 | |||||||||||
Netherlands | 508,400 | 742,929 | — | 1,251,329 | |||||||||||
Sweden | — | 1,063,273 | — | 1,063,273 | |||||||||||
France | — | 872,329 | — | 872,329 | |||||||||||
Belgium | — | 869,299 | — | 869,299 | |||||||||||
Israel | — | 861,411 | — | 861,411 | |||||||||||
Ireland | 476,430 | 210,584 | — | 687,014 | |||||||||||
Spain | — | 635,579 | — | 635,579 | |||||||||||
New Zealand | — | 623,889 | — | 623,889 | |||||||||||
Norway | — | 533,258 | — | 533,258 | |||||||||||
Italy | — | 287,645 | — | 287,645 | |||||||||||
Singapore | 192,261 | 74,911 | — | 267,172 | |||||||||||
Luxembourg | — | 231,965 | — | 231,965 | |||||||||||
United States | — | 24,667 | — | 24,667 | |||||||||||
Armenia | — | 22,967 | — | 22,967 | |||||||||||
Short-Term Investment Funds | 666,263 | — | — | 666,263 | |||||||||||
Total | $ | 3,053,955 | $ | 29,750,394 | $ | — | $ | 32,804,349 |
See accompanying Notes to Financial Statements.
16
Touchstone Anti-Benchmark®US Core Equity Fund–March 31, 2020 (Unaudited)
Market | ||||||
Shares | Value | |||||
Common Stocks — 98.3% | ||||||
Consumer Staples — 18.9% | ||||||
Bunge Ltd. | 5,377 | $ | 220,618 | |||
Campbell Soup Co. | 14,602 | 674,028 | ||||
Church & Dwight Co., Inc. | 1,743 | 111,866 | ||||
Clorox Co. (The) | 887 | 153,673 | ||||
General Mills, Inc. | 6,424 | 338,994 | ||||
Hershey Co. (The) | 2,450 | 324,625 | ||||
JM Smucker Co. (The) | 4,809 | 533,799 | ||||
Keurig Dr Pepper, Inc. | 11,044 | 268,038 | ||||
Kraft Heinz Co. (The) | 22,775 | 563,453 | ||||
Kroger Co. (The) | 24,318 | 732,458 | ||||
Lamb Weston Holdings, Inc. | 8,739 | 498,997 | ||||
US Foods Holding Corp.* | 1,855 | 32,852 | ||||
4,453,401 | ||||||
Consumer Discretionary — 15.4% | ||||||
Advance Auto Parts, Inc. | 401 | 37,421 | ||||
AutoZone, Inc.* | 681 | 576,126 | ||||
Chipotle Mexican Grill, Inc.* | 711 | 465,278 | ||||
Dollar Tree, Inc.* | 4,666 | 342,811 | ||||
Domino's Pizza, Inc. | 1,294 | 419,347 | ||||
Expedia Group, Inc. | 4,199 | 236,278 | ||||
Hasbro, Inc. | 878 | 62,821 | ||||
Kohl's Corp. | 4,791 | 69,901 | ||||
McDonald's Corp. | 245 | 40,511 | ||||
Mohawk Industries, Inc.* | 1,287 | 98,121 | ||||
NVR, Inc.* | 107 | 274,895 | ||||
Target Corp. | 1,320 | 122,720 | ||||
Tesla, Inc.* | 445 | 233,180 | ||||
Ulta Beauty, Inc.* | 1,825 | 320,653 | ||||
Wynn Resorts Ltd. | 598 | 35,994 | ||||
Yum China Holdings, Inc. (China) | 6,599 | 281,315 | ||||
3,617,372 | ||||||
Utilities — 12.2% | ||||||
Consolidated Edison, Inc. | 8,558 | 667,524 | ||||
Edison International | 9,782 | 535,956 | ||||
Essential Utilities, Inc. | 5,478 | 222,955 | ||||
Eversource Energy | 9,391 | 734,470 | ||||
NextEra Energy, Inc. | 1,821 | 438,169 | ||||
Sempra Energy | 2,350 | 265,527 | ||||
2,864,601 | ||||||
Financials — 11.7% | ||||||
AGNC Investment Corp. | 32,459 | 343,416 | ||||
Annaly Capital Management, Inc. | 64,180 | 325,393 | ||||
Cboe Global Markets, Inc. | 7,125 | 635,906 | ||||
CME Group, Inc. | 2,272 | 392,852 | ||||
Everest Re Group Ltd. (Bermuda) | 2,038 | 392,152 | ||||
MarketAxess Holdings, Inc. | 1,991 | 662,147 | ||||
2,751,866 | ||||||
Health Care — 11.2% | ||||||
ABIOMED, Inc.* | 1,247 | 181,015 | ||||
Biogen, Inc.* | 1,451 | 459,067 | ||||
DENTSPLY SIRONA, Inc. | 6,921 | 268,742 | ||||
DexCom, Inc.* | 1,538 | 414,137 | ||||
Humana, Inc. | 1,350 | 423,927 | ||||
Jazz Pharmaceuticals PLC (Ireland)* | 4,031 | 402,052 | ||||
Neurocrine Biosciences, Inc.* | 3,357 | 290,548 | ||||
Sage Therapeutics, Inc.* | 2,400 | 68,928 | ||||
Sarepta Therapeutics, Inc.* | 1,392 | 136,165 | ||||
2,644,581 | ||||||
Materials — 7.4% | ||||||
International Flavors & Fragrances, Inc.† | 1,285 | 131,173 | ||||
Newmont Goldcorp Corp. | 20,316 | 919,908 | ||||
Royal Gold, Inc. | 7,761 | 680,717 | ||||
1,731,798 | ||||||
Real Estate — 6.8% | ||||||
American Tower Corp. REIT | 224 | 48,776 | ||||
Extra Space Storage, Inc. REIT | 7,069 | 676,927 | ||||
Public Storage REIT | 3,860 | 766,635 | ||||
Ventas, Inc. REIT | 3,961 | 106,155 | ||||
1,598,493 | ||||||
Communication Services — 5.4% | ||||||
CenturyLink, Inc. | 11,015 | 104,202 | ||||
Discovery, Inc. - Class C* | 2,563 | 44,955 | ||||
Fox Corp. - Class A | 11,477 | 271,202 | ||||
Fox Corp. - Class B | 5,289 | 121,012 | ||||
Roku, Inc.* | 1,750 | 153,090 | ||||
Snap, Inc. - Class A* | 22,895 | 272,222 | ||||
Verizon Communications, Inc. | 5,809 | 312,118 | ||||
1,278,801 | ||||||
Information Technology — 4.0% | ||||||
Ciena Corp.* | 2,508 | 99,843 | ||||
Dell Technologies, Inc. - Class C* | 2,763 | 109,277 | ||||
NortonLifeLock, Inc. | 15,172 | 283,868 | ||||
QUALCOMM, Inc. | 5,263 | 356,042 | ||||
Trade Desk, Inc. (The) - Class A* | 500 | 96,500 | ||||
945,530 | ||||||
Industrials — 3.9% | ||||||
General Electric Co. | 41,535 | 329,788 | ||||
IAA, Inc.* | 7,984 | 239,201 | ||||
Nielsen Holdings PLC | 4,510 | 56,555 | ||||
WW Grainger, Inc. | 1,174 | 291,739 | ||||
917,283 | ||||||
Energy — 1.4% | ||||||
Apache Corp. | 2,034 | 8,502 | ||||
Baker Hughes Co. | 13,463 | 141,361 | ||||
Cabot Oil & Gas Corp. | 10,592 | 182,076 | ||||
331,939 | ||||||
Total Common Stocks | $ | 23,135,665 | ||||
Short-Term Investment Funds — 2.2% | ||||||
Dreyfus Government Cash Management, InstitutionalShares, 0.29%∞Ω | 374,586 | 374,586 | ||||
Invesco Government & Agency Portfolio, InstitutionalClass, 0.43%**∞Ω | 140,174 | 140,174 | ||||
Total Short-Term Investment Funds | $ | 514,760 | ||||
Total Investment Securities —100.5% | ||||||
(Cost $25,862,513) | $ | 23,650,425 | ||||
Liabilities in Excess of Other Assets — (0.5%) | (127,237 | ) | ||||
Net Assets — 100.0% | $ | 23,523,188 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loanas of March 31, 2020 was $129,846. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
17
Touchstone Anti-Benchmark®US Core Equity Fund(Unaudited) (Continued)
Portfolio Abbreviations:
PLC - Public Limited Company
REIT - Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets: | ||||||||||||
Common Stocks | $ | 23,135,665 | $ | — | $ | — | $ | 23,135,665 | ||||
Short-Term Investment Funds | 514,760 | — | — | 514,760 | ||||||||
Total Assets | $ | 23,650,425 | $ | — | $ | — | $ | 23,650,425 |
See accompanying Notes to Financial Statements.
18
Touchstone Credit Opportunities II Fund –March 31, 2020 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 72.9% | ||||||||
Communication Services — 16.5% | ||||||||
$ | 335,000 | Altice Financing SA (Luxembourg), 144a, 5.000%, 1/15/28 | $ | 296,475 | ||||
329,000 | AMC Networks, Inc., 4.750%, 8/1/25 | 319,952 | ||||||
137,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 4.500%, 8/15/30 | 134,260 | ||||||
460,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.125%, 5/1/27 | 461,196 | ||||||
114,000 | CenturyLink, Inc., 144a, 4.000%, 2/15/27 | 110,580 | ||||||
565,000 | CenturyLink, Inc., 144a, 5.125%, 12/15/26 | 565,000 | ||||||
195,000 | CommScope, Inc., 144a, 5.500%, 3/1/24 | 197,340 | ||||||
177,000 | CommScope, Inc., 144a, 5.500%, 6/15/24(A) | 163,459 | ||||||
310,000 | CommScope, Inc., 144a, 6.000%, 3/1/26(A) | 309,535 | ||||||
105,000 | CSC Holdings LLC, 6.750%, 11/15/21 | 108,150 | ||||||
575,000 | CSC Holdings LLC, 144a, 5.750%, 1/15/30 | 579,864 | ||||||
744,000 | Cumulus Media New Holdings, Inc., 144a, 6.750%, 7/1/26 | 665,880 | ||||||
133,000 | Digicel Group Ltd. (Jamaica), 144a, 8.250%, 9/30/20 | 53,200 | ||||||
153,000 | DISH DBS Corp., 5.875%, 11/15/24 | 148,792 | ||||||
43,000 | Embarq Corp., 7.995%, 6/1/36 | 42,570 | ||||||
305,000 | Front Range BidCo, Inc., 144a, 6.125%, 3/1/28 | 289,750 | ||||||
455,000 | Frontier Communications Corp., 11.000%, 9/15/25 | 119,438 | ||||||
557,000 | Frontier Communications Corp., 144a, 8.500%, 4/1/26 | 511,048 | ||||||
285,000 | Gray Television, Inc., 144a, 5.125%, 10/15/24 | 278,588 | ||||||
586,000 | Intelsat Jackson Holdings SA (Luxembourg), 5.500%, 8/1/23 | 383,830 | ||||||
63,000 | Intelsat Jackson Holdings SA (Luxembourg), 144a, 8.000%, 2/15/24 | 60,873 | ||||||
500,000 | Level 3 Financing, Inc., 5.375%, 1/15/24 | 500,000 | ||||||
128,000 | Netflix, Inc., 4.875%, 4/15/28 | 131,840 | ||||||
116,000 | Netflix, Inc., 144a, 4.875%, 6/15/30 | 117,757 | ||||||
439,000 | Nexstar Broadcasting, Inc., 144a, 5.625%, 8/1/24 | 413,204 | ||||||
105,000 | Nexstar Broadcasting, Inc., 144a, 5.625%, 7/15/27 | 102,638 | ||||||
201,000 | Plantronics, Inc., 144a, 5.500%, 5/31/23 | 146,228 | ||||||
610,000 | Scripps Escrow, Inc., 144a, 5.875%, 7/15/27 | 536,800 | ||||||
969,000 | Sinclair Television Group, Inc., 144a, 5.125%, 2/15/27 | 818,805 | ||||||
132,000 | Sinclair Television Group, Inc., 144a, 5.625%, 8/1/24 | 121,605 | ||||||
20,000 | Sirius XM Radio, Inc., 144a, 5.000%, 8/1/27 | 20,298 | ||||||
240,000 | Sirius XM Radio, Inc., 144a, 5.500%, 7/1/29 | 244,800 | ||||||
703,000 | Sprint Corp., 7.625%, 2/15/25 | 776,815 | ||||||
541,000 | TEGNA, Inc., 144a, 4.625%, 3/15/28 | 475,404 | ||||||
200,000 | Telenet Finance Luxembourg Notes Sarl (Belgium), 144a, 5.500%, 3/1/28 | 186,000 | ||||||
443,000 | Telesat Canada / Telesat LLC (Canada), 144a, 6.500%, 10/15/27 | 425,280 | ||||||
1,160,000 | Townsquare Media, Inc., 144a, 6.500%, 4/1/23(A) | 1,113,600 | ||||||
271,000 | ViaSat, Inc., 144a, 5.625%, 9/15/25 | 253,358 | ||||||
425,000 | Zayo Group LLC / Zayo Capital, Inc., 6.375%, 5/15/25 | 422,875 | ||||||
12,607,087 | ||||||||
Consumer Discretionary — 11.1% | ||||||||
308,000 | 1011778 BC ULC / New Red Finance, Inc. (Canada), 144a, 4.375%, 1/15/28 | 284,561 | ||||||
360,000 | Allison Transmission, Inc., 144a, 4.750%, 10/1/27 | 331,200 | ||||||
391,000 | American Airlines Group, Inc., 144a, 5.000%, 6/1/22 | 313,777 | ||||||
61,000 | Asbury Automotive Group, Inc., 144a, 4.500%, 3/1/28 | 51,850 | ||||||
510,000 | Ashton Woods USA LLC / Ashton Woods Finance Co., 144a, 6.625%, 1/15/28 | 402,900 | ||||||
139,000 | Boyd Gaming Corp., 6.375%, 4/1/26 | 120,235 | ||||||
300,000 | Boyd Gaming Corp., 144a, 4.750%, 12/1/27 | 247,500 | ||||||
389,000 | Century Communities, Inc., 5.875%, 7/15/25 | 327,736 | ||||||
433,000 | Century Communities, Inc., 6.750%, 6/1/27 | 366,924 | ||||||
403,000 | Enterprise Development Authority (The), 144a, 12.000%, 7/15/24 | 350,610 | ||||||
152,000 | Golden Nugget, Inc., 144a, 6.750%, 10/15/24 | 95,743 | ||||||
67,000 | Golden Nugget, Inc., 144a, 8.750%, 10/1/25 | 34,170 | ||||||
435,000 | Installed Building Products, Inc., 144a, 5.750%, 2/1/28 | 414,338 | ||||||
439,000 | IRB Holding Corp., 144a, 6.750%, 2/15/26 | 345,895 | ||||||
300,000 | L Brands, Inc., 6.750%, 7/1/36 | 216,000 | ||||||
208,000 | L Brands, Inc., 6.875%, 11/1/35 | 153,920 | ||||||
165,000 | L Brands, Inc., 7.500%, 6/15/29 | 130,169 | ||||||
349,000 | Live Nation Entertainment, Inc., 144a, 4.750%, 10/15/27 | 310,610 | ||||||
217,000 | Live Nation Entertainment, Inc., 144a, 4.875%, 11/1/24 | 197,548 | ||||||
204,000 | Live Nation Entertainment, Inc., 144a, 5.625%, 3/15/26 | 189,720 | ||||||
238,000 | Newell Brands, Inc., 4.700%, 4/1/26 | 233,668 | ||||||
298,000 | Panther BF Aggregator 2 LP / Panther Finance Co., Inc., 144a, 6.250%, 5/15/26 | 281,610 | ||||||
300,000 | PetSmart, Inc., 144a, 5.875%, 6/1/25 | 295,500 | ||||||
60,000 | PetSmart, Inc., 144a, 7.125%, 3/15/23 | 55,875 | ||||||
223,000 | PetSmart, Inc., 144a, 8.875%, 6/1/25 | 201,815 | ||||||
261,000 | Sabre GLBL, Inc., 144a, 5.250%, 11/15/23 | 237,510 | ||||||
84,000 | Sabre GLBL, Inc., 144a, 5.375%, 4/15/23 | 76,860 | ||||||
757,000 | Scientific Games International, Inc., 144a, 5.000%, 10/15/25 | 658,590 | ||||||
541,000 | Six Flags Entertainment Corp., 144a, 4.875%, 7/31/24 | 458,498 | ||||||
426,000 | Six Flags Entertainment Corp., 144a, 5.500%, 4/15/27 | 358,905 | ||||||
363,000 | SRS Distribution, Inc., 144a, 8.250%, 7/1/26 | 275,880 | ||||||
513,000 | Station Casinos LLC, 144a, 4.500%, 2/15/28 | 415,530 | ||||||
8,435,647 | ||||||||
Industrials — 10.7% | ||||||||
379,000 | Berry Global, Inc., 144a, 4.875%, 7/15/26 | 382,790 | ||||||
14,000 | Boeing Co.(The), 1.875%, 6/15/23 | 12,863 | ||||||
21,000 | Boeing Co.(The), 2.350%, 10/30/21 | 19,900 | ||||||
189,000 | Boeing Co.(The), 2.700%, 5/1/22 | 178,873 | ||||||
27,000 | Boeing Co.(The), 2.700%, 2/1/27 | 24,758 | ||||||
75,000 | Boeing Co.(The), 3.100%, 5/1/26 | 68,996 | ||||||
355,000 | Bombardier, Inc. (Canada), 144a, 6.000%, 10/15/22 | 266,250 | ||||||
734,000 | Bombardier, Inc. (Canada), 144a, 7.500%, 12/1/24 | 495,450 | ||||||
450,000 | Cargo Aircraft Management, Inc., 144a, 4.750%, 2/1/28 | 417,375 | ||||||
368,000 | Clean Harbors, Inc., 144a, 4.875%, 7/15/27 | 360,235 | ||||||
214,000 | Crown Americas LLC / Crown Americas Capital Corp. V, 4.250%, 9/30/26 | 210,790 | ||||||
31,000 | Crown Americas LLC / Crown Americas Capital Corp. VI, 4.750%, 2/1/26 | 31,766 | ||||||
30,000 | DAE Funding LLC (United Arab Emirates), 144a, 4.500%, 8/1/22 | 27,825 | ||||||
9,000 | Ford Motor Credit Co. LLC, 3.087%, 1/9/23 | 8,280 | ||||||
14,000 | Ford Motor Credit Co. LLC, 3.096%, 5/4/23 | 12,810 | ||||||
11,000 | Ford Motor Credit Co. LLC, 3.810%, 1/9/24 | 9,955 | ||||||
13,000 | Ford Motor Credit Co. LLC, 4.063%, 11/1/24 | 11,797 | ||||||
57,000 | GFL Environmental, Inc. (Canada), 144a, 5.125%, 12/15/26 | 55,575 | ||||||
272,000 | GFL Environmental, Inc. (Canada), 144a, 7.000%, 6/1/26 | 263,273 |
19
Touchstone Credit Opportunities II Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 72.9% (Continued) | ||||||||
Industrials — (Continued) | ||||||||
$ | 18,000 | GFL Environmental, Inc. (Canada), 144a, 8.500%, 5/1/27 | $ | 18,085 | ||||
867,000 | Hillman Group, Inc. (The), 144a, 6.375%, 7/15/22 | 673,009 | ||||||
325,000 | IAA, Inc., 144a, 5.500%, 6/15/27 | 314,437 | ||||||
401,000 | Masonite International Corp., 144a, 5.375%, 2/1/28 | 394,103 | ||||||
448,000 | Mauser Packaging Solutions Holding Co., 144a, 7.250%, 4/15/25 | 356,160 | ||||||
604,000 | Sensata Technologies, Inc., 144a, 4.375%, 2/15/30 | 543,600 | ||||||
641,000 | Signature Aviation US Holdings, Inc., 144a, 4.000%, 3/1/28 | 578,695 | ||||||
180,000 | Titan Acquisition Ltd. / Titan Co.-Borrower LLC (Canada), 144a, 7.750%, 4/15/26 | 150,300 | ||||||
660,000 | TransDigm, Inc., 144a, 6.250%, 3/15/26 | 657,525 | ||||||
549,000 | Trident TPI Holdings, Inc., 144a, 9.250%, 8/1/24 | 455,670 | ||||||
247,000 | Trivium Packaging Finance BV (Netherlands), 144a, 5.500%, 8/15/26 | 245,765 | ||||||
119,000 | Trivium Packaging Finance BV (Netherlands), 144a, 8.500%, 8/15/27 | 119,595 | ||||||
312,000 | Tutor Perini Corp., 2.875%, 6/15/21 | 287,234 | ||||||
481,000 | Tutor Perini Corp., 144a, 6.875%, 5/1/25† | 399,230 | ||||||
107,000 | XPO Logistics, Inc., 144a, 6.750%, 8/15/24 | 104,625 | ||||||
8,157,594 | ||||||||
Energy — 9.5% | ||||||||
437,000 | Archrock Partners LP / Archrock Partners Finance Corp., 144a, 6.250%, 4/1/28 | 301,530 | ||||||
336,000 | Blue Racer Midstream LLC / Blue Racer FinanceCorp., 144a, 6.125%, 11/15/22(A) | 252,000 | ||||||
381,000 | Cheniere Energy Partners LP, 5.625%, 10/1/26 | 350,520 | ||||||
340,000 | Cheniere Energy Partners LP, 144a, 4.500%, 10/1/29 | 295,800 | ||||||
346,000 | Citgo Holding, Inc., 144a, 9.250%, 8/1/24 | 281,990 | ||||||
760,000 | CITGO Petroleum Corp., 144a, 6.250%, 8/15/22 | 684,000 | ||||||
185,000 | eG Global Finance PLC (United Kingdom), 144a, 6.750%, 2/7/25 | 151,700 | ||||||
305,455 | eG Global Finance PLC (United Kingdom), 144a, 8.500%, 10/30/25 | 271,855 | ||||||
1,046,000 | Exterran Energy Solutions LP / EES Finance Corp.,8.125%, 5/1/25(A) | 690,360 | ||||||
786,000 | Extraction Oil & Gas, Inc., 144a, 7.375%, 5/15/24 | 139,515 | ||||||
730,000 | FTS International, Inc., 6.250%, 5/1/22 | 253,675 | ||||||
744,000 | Great Western Petroleum LLC / Great Western Finance Corp., 144a, 9.000%, 9/30/21 | 476,160 | ||||||
101,000 | Hess Midstream Operations LP, 144a, 5.125%, 6/15/28 | 70,983 | ||||||
475,000 | Hess Midstream Operations LP, 144a, 5.625%, 2/15/26 | 335,381 | ||||||
293,000 | Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 5.750%, 10/1/25 | 134,780 | ||||||
165,000 | Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 6.250%, 11/1/28 | 72,600 | ||||||
111,000 | Holly Energy Partners LP / Holly Energy Finance Corp., 144a, 5.000%, 2/1/28 | 92,963 | ||||||
69,000 | NextEra Energy Partners LP, 144a, 1.500%, 9/15/20 | 68,201 | ||||||
546,000 | NGL Energy Partners LP / NGL Energy Finance Corp., 6.125%, 3/1/25 | 185,640 | ||||||
260,000 | Occidental Petroleum Corp., 2.700%, 2/15/23 | 153,975 | ||||||
67,000 | Occidental Petroleum Corp., 4.100%, 2/1/21 | 56,949 | ||||||
123,000 | Parsley Energy LLC / Parsley Finance Corp., 144a, 4.125%, 2/15/28 | 83,640 | ||||||
105,000 | Peabody Energy Corp., 144a, 6.000%, 3/31/22 | 71,400 | ||||||
409,000 | Seven Generations Energy Ltd. (Canada), 144a, 5.375%, 9/30/25 | 228,017 | ||||||
79,000 | Southwestern Energy Co., 6.200%, 1/23/25 | 53,795 | ||||||
136,000 | Southwestern Energy Co., 7.500%, 4/1/26 | 89,080 | ||||||
52,000 | Southwestern Energy Co., 7.750%, 10/1/27 | 34,190 | ||||||
517,000 | Summit Midstream Holdings LLC / Summit Midstream Finance Corp., 5.500%, 8/15/22 | 93,060 | ||||||
307,000 | Summit Midstream Holdings LLC / Summit Midstream Finance Corp., 5.750%, 4/15/25 | 33,770 | ||||||
690,000 | TerraForm Power Operating LLC, 144a, 4.250%, 1/31/23 | 684,825 | ||||||
301,000 | Transocean Poseidon Ltd., 144a, 6.875%, 2/1/27 | 243,810 | ||||||
456,000 | Valaris PLC (South Africa), 4.875%, 6/1/22 | 99,180 | ||||||
219,000 | Valaris PLC (South Africa), 7.375%, 6/15/25 | 43,800 | ||||||
211,000 | Western Midstream Operating LP, 5.375%, 6/1/21 | 168,599 | ||||||
7,247,743 | ||||||||
Health Care — 4.7% | ||||||||
18,000 | Acadia Healthcare Co., Inc., 6.500%, 3/1/24 | 17,505 | ||||||
1,090,000 | ASP AMC Merger Sub, Inc., 144a, 8.000%, 5/15/25 | 640,702 | ||||||
100,000 | Bausch Health Cos, Inc., 144a, 5.000%, 1/30/28 | 94,670 | ||||||
100,000 | Bausch Health Cos, Inc., 144a, 5.250%, 1/30/30 | 94,556 | ||||||
50,000 | Bausch Health Cos, Inc., 144a, 6.125%, 4/15/25 | 49,250 | ||||||
180,000 | Centene Corp., 4.750%, 5/15/22 | 180,900 | ||||||
131,000 | Centene Corp., 4.750%, 1/15/25 | 131,326 | ||||||
422,000 | Envision Healthcare Corp., 144a, 8.750%, 10/15/26 | 103,390 | ||||||
244,000 | HCA, Inc., 5.625%, 9/1/28 | 255,395 | ||||||
325,000 | HCA, Inc., 7.690%, 6/15/25 | 334,750 | ||||||
222,000 | Hill-Rom Holdings, Inc., 144a, 5.000%, 2/15/25 | 224,220 | ||||||
340,000 | Immucor, Inc., 144a, 11.125%, 2/15/22 | 306,000 | ||||||
445,000 | Molina Healthcare, Inc., 144a, 4.875%, 6/15/25 | 433,875 | ||||||
259,000 | Ortho-Clinical Diagnostics, Inc. / Ortho-Clinical Diagnostics SA, 144a, 7.250%, 2/1/28 | 222,714 | ||||||
511,000 | RegionalCare Hospital Partners Holdings, Inc., 144a, 8.250%, 5/1/23 | 529,268 | ||||||
3,618,521 | ||||||||
Consumer Staples — 4.6% | ||||||||
345,000 | American Builders & Contractors Supply Co., Inc., 144a, 4.000%, 1/15/28 | 313,950 | ||||||
92,000 | Beacon Roofing Supply, Inc., 144a, 4.500%, 11/15/26 | 84,898 | ||||||
207,000 | Chobani LLC / Chobani Finance Corp., Inc., 144a, 7.500%, 4/15/25 | 188,370 | ||||||
301,000 | Clearwater Seafoods, Inc. (Canada), 144a, 6.875%, 5/1/25 | 256,606 | ||||||
293,000 | Cott Holdings, Inc. (Canada), 144a, 5.500%, 4/1/25 | 284,210 | ||||||
315,000 | Dole Food Co., Inc., 144a, 7.250%, 6/15/25 | 248,850 | ||||||
524,000 | GEMS MENASA Cayman Ltd. / GEMS Education Delaware LLC (United Arab Emirates), 144a, 7.125%, 7/31/26 | 436,230 | ||||||
21,000 | JBS USA LUX SA / JBS USA Finance, Inc., 144a, 5.750%, 6/15/25 | 21,210 | ||||||
149,000 | JBS USA LUX SA / JBS USA Finance, Inc., 144a, 5.875%, 7/15/24 | 150,862 | ||||||
363,000 | JBS USA LUX SA / JBS USA Food Co. / JBS USA Finance, Inc., 144a, 5.500%, 1/15/30 | 374,797 | ||||||
530,000 | Korn Ferry, 144a, 4.625%, 12/15/27 | 460,437 | ||||||
240,000 | Lamb Weston Holdings, Inc., 144a, 4.625%, 11/1/24 | 236,400 | ||||||
236,000 | Performance Food Group, Inc., 144a, 5.500%, 10/15/27 | 218,890 | ||||||
237,000 | Simmons Foods, Inc., 144a, 5.750%, 11/1/24 | 215,149 | ||||||
3,490,859 |
20
Touchstone Credit Opportunities II Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 72.9% (Continued) | ||||||||
Materials — 4.2% | ||||||||
$ | 398,333 | Boart Longyear Management Pty Ltd.,10.000%, 12/31/22(B) | $ | 318,666 | ||||
314,000 | CF Industries, Inc., 4.950%, 6/1/43 | 298,206 | ||||||
136,000 | Constellium SE, 144a, 5.750%, 5/15/24 | 121,394 | ||||||
243,000 | First Quantum Minerals Ltd. (Canada), 144a, 6.875%, 3/1/26 | 195,007 | ||||||
247,000 | Freeport-McMoRan, Inc., 3.875%, 3/15/23 | 233,415 | ||||||
496,000 | Freeport-McMoRan, Inc., 5.400%, 11/14/34(A) | 458,800 | ||||||
63,000 | Freeport-McMoRan, Inc., 5.450%, 3/15/43(A) | 56,385 | ||||||
551,000 | Kraton Polymers LLC / Kraton Polymers Capital Corp., 144a, 7.000%, 4/15/25 | 487,635 | ||||||
404,000 | New Gold, Inc. (Canada), 144a, 6.250%, 11/15/22 | 392,385 | ||||||
246,000 | Novelis Corp., 144a, 4.750%, 1/30/30 | 218,940 | ||||||
110,000 | PQ Corp., 144a, 6.750%, 11/15/22 | 110,555 | ||||||
356,000 | Tronox Finance PLC, 144a, 5.750%, 10/1/25 | 317,730 | ||||||
3,209,118 | ||||||||
Real Estate — 3.8% | ||||||||
703,000 | Brookfield Property REIT, Inc. / BPR Cumulus LLC / BPR Nimbus LLC / GGSI Sellco LL, 144a, 5.750%, 5/15/26 | 570,400 | ||||||
137,000 | ESH Hospitality, Inc. REIT, 144a, 4.625%, 10/1/27 | 106,860 | ||||||
38,000 | ESH Hospitality, Inc. REIT, 144a, 5.250%, 5/1/25 | 31,920 | ||||||
658,000 | GEO Group, Inc. (The) REIT, 5.125%, 4/1/23 | 493,500 | ||||||
390,000 | Iron Mountain, Inc. REIT, 144a, 4.875%, 9/15/29 | 366,358 | ||||||
531,000 | Iron Mountain, Inc. REIT, 144a, 5.250%, 3/15/28 | 524,522 | ||||||
294,000 | Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp. REIT, 144a, 4.250%, 2/1/27 | 232,260 | ||||||
427,000 | MGM Growth Properties Operating Partnership LP / MGP Finance Co.-Issuer, Inc., 4.500%, 9/1/26 | 354,410 | ||||||
17,000 | MGM Growth Properties Operating Partnership LP / MGP Finance Co.-Issuer, Inc., 4.500%, 1/15/28 | 14,450 | ||||||
201,000 | VICI Properties LP / VICI Note Co., Inc. REIT, 144a, 4.125%, 8/15/30 | 188,186 | ||||||
46,000 | VICI Properties LP / VICI Note Co., Inc. REIT, 144a, 4.625%, 12/1/29 | 41,969 | ||||||
2,924,835 | ||||||||
Information Technology — 3.4% | ||||||||
98,000 | Diebold Nixdorf, Inc., 8.500%, 4/15/24 | 63,701 | ||||||
710,000 | Genesys Telecommunications Laboratories, Inc./Greeneden Lux 3 Sarl/Greeneden US Ho, 144a, 10.000%, 11/30/24 | 726,181 | ||||||
145,000 | Infor US, Inc., 6.500%, 5/15/22 | 142,462 | ||||||
538,000 | NCR Corp., 5.000%, 7/15/22 | 505,720 | ||||||
346,000 | Nuance Communications, Inc., 5.625%, 12/15/26(A) | 336,720 | ||||||
291,000 | Open Text Holdings, Inc. (Canada), 144a, 4.125%, 2/15/30 | 273,613 | ||||||
47,000 | PTC, Inc., 144a, 3.625%, 2/15/25 | 43,945 | ||||||
162,000 | PTC, Inc., 144a, 4.000%, 2/15/28 | 155,569 | ||||||
324,000 | Science Applications International Corp., 144a, 4.875%, 4/1/28 | 311,040 | ||||||
2,558,951 | ||||||||
Utilities — 2.5% | ||||||||
487,000 | Calpine Corp., 144a, 4.500%, 2/15/28 | 472,025 | ||||||
302,000 | Calpine Corp., 144a, 5.125%, 3/15/28 | 277,840 | ||||||
22,000 | Edison International, 4.950%, 4/15/25 | 21,949 | ||||||
575,000 | NextEra Energy Operating Partners LP, 144a, 4.250%, 7/15/24 | 560,625 | ||||||
40,000 | NRG Energy, Inc., 7.250%, 5/15/26 | 41,900 | ||||||
37,000 | NRG Energy, Inc., 144a, 5.250%, 6/15/29 | 38,110 | ||||||
543,000 | Vistra Operations Co. LLC, 144a, 4.300%, 7/15/29 | 481,429 | ||||||
1,893,878 | ||||||||
Financials — 1.9% | ||||||||
541,000 | Acrisure LLC / Acrisure Finance, Inc., 144a, 8.125%, 2/15/24 | 526,961 | ||||||
231,000 | Acrisure LLC / Acrisure Finance, Inc., 144a, 10.125%, 8/1/26 | 214,830 | ||||||
217,000 | Alliant Holdings Intermediate LLC / Alliant Holdings Co.-Issuer, 144a, 6.750%, 10/15/27 | 203,199 | ||||||
91,000 | Ally Financial, Inc., 5.750%, 11/20/25 | 89,016 | ||||||
29,000 | Ally Financial, Inc., 8.000%, 11/1/31 | 33,602 | ||||||
402,000 | LPL Holdings, Inc., 144a, 4.625%, 11/15/27 | 367,678 | ||||||
1,435,286 | ||||||||
Total Corporate Bonds | $ | 55,579,519 | ||||||
Asset-Backed Securities — 8.3% | ||||||||
250,000 | AMMC CLO 22 Ltd., Ser 2018-22X, Class SUB,(Cayman Islands), 4/25/31(C) | 138,802 | ||||||
340,000 | Atrium XV, Ser 15A, Class SUB, (Cayman Islands),144a, 1/23/48(C)(D) | 186,782 | ||||||
250,000 | Bain Capital Credit CLO Ltd., Ser 2019-4A, Class D, (Cayman Islands), 144a, (3M LIBOR +4.250%),6.142%, 1/23/33(C) | 187,789 | ||||||
250,000 | CBAM Ltd., Ser 2017-3A, Class E1, (Cayman Islands),144a, (3M LIBOR +6.500%), 8.336%, 10/17/29(C) | 170,430 | ||||||
250,000 | Dryden 45 Senior Loan Fund, Ser 2016-45A, Class ER,(Cayman Islands), 144a, (3M LIBOR +5.850%), 7.681%, 10/15/30(C) | 150,960 | ||||||
250,000 | Dryden 57 CLO Ltd., Ser 2018-57A, Class E, (Cayman Islands), 144a, (3M LIBOR +5.200%), 6.892%, 5/15/31(C) | 131,600 | ||||||
500,000 | Dryden 64 CLO Ltd., Ser 2018-64A, Class E, (Cayman Islands), 144a, (3M LIBOR +5.600%), 7.419%, 4/18/31(C) | 289,994 | ||||||
500,000 | Dryden 80 CLO Ltd., Ser 2019-80A, Class D1, (Cayman Islands), 144a, (3M LIBOR +4.100%),5.984%, 1/17/33(C) | 377,460 | ||||||
250,000 | Fillmore Park CLO Ltd., Ser 2018-1A, Class D, (Cayman Islands), 144a, (3M LIBOR +2.900%),4.731%, 7/15/30(C) | 182,789 | ||||||
500,000 | Fillmore Park CLO Ltd., Ser 2018-1A, Class E, (Cayman Islands), 144a, (3M LIBOR +5.400%), 7.231%,7/15/30(C) | 301,686 | ||||||
250,000 | Gilbert Park CLO Ltd., Ser 2017-1A, Class D, (Cayman Islands), 144a, (3M LIBOR +2.950%), 4.781%,10/15/30(C) | 191,498 | ||||||
250,000 | LCM Ltd., Ser 2019-30, (Cayman Islands), 144a, (3MLIBOR +6.950%), 8.769%, 4/20/31(C) | 169,587 | ||||||
300,000 | Madison Park Funding XII Ltd., Ser 2014-12A, ClassSUB, (Cayman Islands), 144a, 7/20/26(C)(D) | 20,099 | ||||||
500,000 | Madison Park Funding XXVIII Ltd., Ser 2018-28A,Class SUB, (Cayman Islands), 144a, 7/15/30(C)(D) | 254,467 | ||||||
250,000 | Madison Park Funding XXXI Ltd., Ser 2018-31A, ClassSUB, (Cayman Islands), 144a, 1/23/48(C)(D) | 151,468 |
21
Touchstone Credit Opportunities II Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — (Continued) | ||||||||
$ | 250,000 | Madison Park Funding XXXIV Ltd., Ser 2019-34A, Class E, (Cayman Islands), 144a, (3M LIBOR+6.750%), 8.544%, 4/25/31(C) | $ | 157,018 | ||||
540,000 | Madison Park Funding XXXVII Ltd., Ser 2019-37A,Class SUB, (Cayman Islands), 144a, 7/15/49(C)(D) | 367,027 | ||||||
250,000 | Mariner CLO 7 Ltd., Ser 2019-1A, Class E, (Cayman Islands), 144a, (3M LIBOR +6.890%), 8.660%,4/30/32(C) | 164,386 | ||||||
500,000 | Oaktree CLO Ltd., Ser 2018-1A, Class SUB, (CaymanIslands), 144a, 10/20/30(C)(D) | 231,967 | ||||||
250,000 | Oaktree CLO Ltd., Ser 2019-2A, Class D, (Cayman Islands), 144a, (3M LIBOR +6.770%), 8.601%,4/15/31(C) | 157,369 | ||||||
500,000 | Oaktree CLO Ltd., Ser 2019-3A, Class E, (Cayman Islands), 144a, (3M LIBOR +6.770%), 8.589%,7/20/31(C) | 280,136 | ||||||
350,000 | Oaktree CLO Ltd., Ser 2019-4A, Class E, (Cayman Islands), 144a, (3M LIBOR +7.230%), 9.148%,10/20/32(C) | 233,761 | ||||||
250,000 | Octagon Loan Funding Ltd., Ser 2014-1A, Class DRR, (Cayman Islands), 144a, (3M LIBOR +2.900%),4.592%, 11/18/31(C) | 176,683 | ||||||
500,000 | OHA Credit Funding 3 Ltd., Ser 2019-3A, Class E2, (Cayman Islands), 144a, (3M LIBOR +5.500%),7.319%, 7/20/32(C) | 278,946 | ||||||
500,000 | OZLM XXI, Ser 2017-21A, Class SUB, (CaymanIslands), 144a, 1/20/31(C)(D) | 172,031 | ||||||
250,000 | OZLM XXIII Ltd., Ser 2019-23A, Class E, (Cayman Islands), 144a, (3M LIBOR +6.800%), 8.631%,4/15/32(C) | 166,360 | ||||||
500,000 | Steele Creek CLO Ltd., Ser 2019-2A, Class E, (Cayman Islands), 144a, (3M LIBOR +7.700%), 9.531%,7/15/32(C) | 298,406 | ||||||
924,999 | Stewart Park CLO Ltd., Ser 2015-1X, Class SUB,(Cayman Islands), 1/15/30(C)(D) | 142,711 | ||||||
250,000 | TCI-Flatiron CLO Ltd., Ser 2017-1A, Class D, (Cayman Islands), 144a, (3M LIBOR +2.750%), 4.442%,11/18/30(C) | 184,934 | ||||||
250,000 | Venture XVIII CLO Ltd., Ser 2014-18A, Class SUB,(Cayman Islands), 144a, 10/15/29(C)(D) | 51,248 | ||||||
250,000 | Wellfleet CLO Ltd., Ser 2018-3A, Class SUB, (CaymanIslands), 144a, 1/20/32(C)(D) | 146,851 | ||||||
280,000 | Wellfleet CLO Ltd., Ser 2020-1A, Class SUB, (CaymanIslands), 144a, 4/15/33(C)(D)(E) | 234,836 | ||||||
Total Asset-Backed Securities | $ | 6,350,081 | ||||||
Bank Loans(F) — 7.8% | ||||||||
Consumer Discretionary — 2.6% | ||||||||
284,288 | AVSC Holding Corp., First Lien 2019 Incremental Term Loan (LIBOR +4.500%), 6.204%, 10/15/26 | 170,573 | ||||||
385,733 | BWay Holding Co., Initial Term Loan (LIBOR +3.250%), 5.084%, 4/3/24 | 312,687 | ||||||
393,166 | eResearch Technology Inc., First Lien Initial Term Loan (LIBOR +4.500%), 5.950%,2/4/27 | 342,054 | ||||||
110,591 | GOBP Holdings Inc., First Lien Term Loan (LIBOR +2.750%), 3.744%, 10/22/25 | 102,020 | ||||||
493,571 | Golden Nugget, Inc., First Initial Term Loan (LIBOR +2.500%), 3.489%, 10/4/23 | 382,518 | ||||||
224,350 | IRB Holding Corp., Term B Loan (LIBOR +2.750%), 3.954%, 2/5/25 | 172,330 | ||||||
328,988 | Merrill Communications LLC, First Lien Term Loan B (LIBOR +5.000%), 6.908%, 10/5/26 | 289,510 | ||||||
199,000 | Panther BF Aggregator 2 LP, First Lien Initial DollarTerm Loan (LIBOR +3.500%), 4/30/26(G) | 181,090 | ||||||
1,952,782 | ||||||||
Information Technology — 2.2% | ||||||||
274,293 | AI Aqua Merger Sub, Inc., 2018 Tranche B-1 Term Loan (LIBOR +3.250%), 4.322%, 12/13/23 | 233,149 | ||||||
536,732 | Diebold Nixdorf Inc., Term Loan A1 (LIBOR +9.250%),10.250%, 8/31/22(G) | 474,337 | ||||||
208,333 | Kronos Inc., Second Lien Initial Term Loan (LIBOR+8.250%), 11/1/24(G) | 190,833 | ||||||
865,485 | MA Financeco LLC, Tranche B-2 Term Loan (LIBOR +2.250%), 3.239%, 11/19/21 | 811,392 | ||||||
1,709,711 | ||||||||
Energy — 1.1% | ||||||||
494,231 | Brazos Delaware II LLC, Initial Term Loan (LIBOR +4.000%), 4.924%, 5/21/25 | 249,587 | ||||||
348,843 | Medallion Midland Acquisition LLC, Initial Term Loan (LIBOR +3.250%), 4.250%, 10/30/24 | 188,375 | ||||||
210,289 | Traverse Midstream Partners LLC, Advance (LIBOR +4.000%), 5.000%, 9/27/24 | 115,659 | ||||||
429,505 | Woodford Express LLC, Initial Term Loan (LIBOR +5.000%), 6.000%, 1/27/25 | 257,703 | ||||||
811,324 | ||||||||
Health Care — 0.7% | ||||||||
241,311 | Jaguar Holding Company II, 2018 Term Loan (LIBOR+2.500%), 8/18/22(G) | 229,678 | ||||||
141,724 | LifePoint Health, Inc., First Lien Term B Loan (LIBOR +3.750%), 4.739%, 11/17/25 | 130,830 | ||||||
253,568 | Team Health Holdings, Inc., Initial Term Loan (LIBOR +2.750%), 3.750%, 2/6/24 | 158,480 | ||||||
518,988 | ||||||||
Communication Services — 0.7% | ||||||||
358,065 | Frontier Communications Corp., Term B-1 Loan (LIBOR +3.750%), 5.350%, 6/17/24 | 338,761 | ||||||
169,571 | Sprint Communications, Inc., 2018 Incremental TermLoan (LIBOR +3.000%), 2/2/24(G) | 168,299 | ||||||
507,060 | ||||||||
Financials — 0.5% | ||||||||
227,946 | Asurion LLC, Second Lien Replacement B-2 Term Loan (LIBOR +6.500%), 7.489%, 8/4/25 | 207,715 | ||||||
247,621 | Star US Bidco LLC, Initial Term Loan (LIBOR +4.250%), 5.250%, 3/17/27 | 211,096 | ||||||
418,811 | ||||||||
Industrials — 0.0% | ||||||||
9,589 | Sequa Mezzanine Holdings LLC, Initial Term Loan (First Lien) (LIBOR +5.000%), 6.742%, 11/28/21 | 7,647 | ||||||
Total Bank Loans | $ | 5,926,323 | ||||||
Shares | ||||||||
Common Stocks — 0.3% | ||||||||
Materials — 0.2% | ||||||||
3,250 | Berry Global Group, Inc.* | 109,557 | ||||||
Information Technology — 0.0% | ||||||||
8,386 | Aquity Holdings, Inc. New Escrow(E)* | 23,397 | ||||||
Health Care — 0.0% | ||||||||
3,069 | Envigo RMS Holding Corp. Class B(E)(H)* | — |
22
Touchstone Credit Opportunities II Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 0.3% (Continued) | ||||||||
Energy — 0.0% | ||||||||
74,381 | Trident, Class A Templar Restructure(H)* | $ | 744 | |||||
12,726 | Trident, Templar Restructure(H)* | — | ||||||
744 | ||||||||
Communication Services — 0.1% | ||||||||
13,299 | Cumulus Media, Inc. - Class A* | 72,081 | ||||||
Total Common Stocks | $ | 205,779 |
Number | ||||||||
of | Notional | |||||||
Contracts | Amount | |||||||
Purchased Options — 0.6% | ||||||||
Purchased Call Options — 0.1% | ||||||||
Chicago Board Options Exchange Volatility Index, Strike @37.50, Exp4/20(A) | 64 | $ | 36,931,464 | 60,800 | ||||
Purchased Put Options — 0.5% | ||||||||
SPDR S&P 500 ETF Trust, Strike @270.00,Exp 4/20(A) | 200 | 5,155,000 | 342,000 | |||||
United States Oil Fund LP, Strike @4.00,Exp 4/20(A) | 1,000 | 421,000 | 45,000 | |||||
Total Purchased Put Options | 387,000 | |||||||
Total Purchased Options | $ | 447,800 |
Shares | |||||
Short-Term Investment Funds — 3.5% | |||||
2,189,245 | Dreyfus Government Cash Management,Institutional Shares, 0.29%∞Ω | 2,189,245 | |||
474,200 | Invesco Government & Agency Portfolio,Institutional Class, 0.43%**∞Ω | 474,200 | |||
Total Short-Term Investment Funds | $ | 2,663,445 | |||
Total Long Positions —93.4% | |||||
(Cost $84,707,734) | $ | 71,172,947 |
Principal | |||||
Amount | |||||
Securities Sold Short — (1.3%) | |||||
Corporate Bonds — (1.3%) | |||||
Consumer Discretionary — (0.9%) | |||||
$ (300,000 | ) | Goodyear Tire & Rubber Co. (The), 4.875%, 3/15/27 | (275,250 | ) | |
(500,000 | ) | Sally Holdings LLC / Sally Capital, Inc., 5.625%, 12/1/25 | (408,125 | ) | |
(683,375 | ) | ||||
Energy — (0.4%) | |||||
(125,000 | ) | Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp., 6.250%, 4/1/23 | (70,025 | ) | |
(500,000 | ) | Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp., 144a, 5.625%, 5/1/27 | (274,855 | ) | |
(344,880 | ) | ||||
Total Corporate Bonds | $ | (1,028,255 | ) | ||
Total Securities Sold Short | |||||
(Proceeds $1,371,736) | $ | (1,028,255 | ) |
Number | ||||||||||||
of | Notional | Market | ||||||||||
Contracts | Amount | Value | ||||||||||
Written Options — (0.2%) | ||||||||||||
Written Put Options — (0.2%) | ||||||||||||
SPDR S&P 500 ETF Trust, Strike @250.00, Exp 4/20 (premiums received $65,991) | (200 | ) | $ | (5,155,000 | ) | $ | (170,000 | ) | ||||
Total —91.9% | $ | 69,974,692 | ||||||||||
Cash Collateral for Securities | ||||||||||||
Sold Short and Written Options— 1.0% | 764,289 | |||||||||||
Other Assets in Excess of Liabilities — 7.1% | 5,437,846 | |||||||||||
Net Assets — 100.0% | $ | 76,176,827 |
(A) | All or a portion of these securities are pledged as collateral for securities sold short. The total value of the securities pledged as collateral as of March 31, 2020 was $2,921,400. |
(B) | Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amounts. |
(C) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2020. |
(D) | Security has no stated coupon and is considered an equity position in the collateralized loan obligation (“CLO”). CLO equity investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. |
(E) | Level 3 - 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. |
(F) | Bank loans pay interest at rates which adjust periodically unless otherwise indicated. The interest rates shown are the current interest rates as of March 31, 2020. |
(G) | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
(H) | Security is subject to restrictions on resale. At March 31, 2020, these securities were valuedat $744 or 0.0% of net assets. |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2020 was $ 393,586. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
CLO - Collateralized Loan Obligation
ETF - Exchange-Traded Fund
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
REIT - Real Estate Investment Trust
SPDR - Standard & Poor's Depositary Receipt
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2020, these securities were valued at $49,302,925 or 64.7% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
23
Touchstone Credit Opportunities II Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets: | ||||||||||||
Corporate Bonds | $ | — | $ | 55,579,519 | $ | — | $ | 55,579,519 | ||||
Asset-Backed Securities | — | 6,115,245 | 234,836 | 6,350,081 | ||||||||
Bank Loans | — | 5,926,323 | — | 5,926,323 | ||||||||
Common Stocks | 181,638 | 744 | 23,397 | 205,779 | ||||||||
Purchased Call Options Equity | ||||||||||||
Contracts | 60,800 | — | — | 60,800 | ||||||||
Purchased Put Options Equity | ||||||||||||
Contracts | 387,000 | — | — | 387,000 | ||||||||
Short-Term Investment Funds | 2,663,445 | — | — | 2,663,445 | ||||||||
Total Assets | $ | 3,292,883 | $ | 67,621,831 | $ | 258,233 | $ | 71,172,947 | ||||
Liabilities: | ||||||||||||
Securities Sold Short | ||||||||||||
Corporate Bonds | $ | — | $ | (1,028,255 | ) | $ | — | $ | (1,028,255 | ) | ||
Written Options Equity Contract | (170,000 | ) | — | — | (170,000 | ) | ||||||
Total Liabilities | $ | (170,000 | ) | $ | (1,028,255 | ) | $ | — | $ | (1,198,255 | ) | |
Total | $ | 3,122,883 | $ | 66,593,576 | $ | 258,233 | $ | 69,974,692 |
Measurements Using Unobservable Inputs (Level 3) |
Common | ||||
Stocks | ||||
and | ||||
Asset- Backed | ||||
Assets | Securities | |||
Beginning balance, September 30, 2019 | $ | 23,397 | ||
Transfer into Level 3 | — | |||
Purchases & Sales | 234,836 | |||
Net realized gain (loss) | — | |||
Change in unrealized appreciation (depreciation) | — | |||
Ending balance, March 31, 2020 | $ | 258,233 | ||
Net Change in Unrealized Appreciation/Depreciation for Investments in Securities still held at March 31, 2020 | $ | — |
Common Stocks | ||||||||||
and | Valuation | Unobservable | ||||||||
Asset-Backed Securities | Fair Value | Technique | Input | |||||||
Aquity Holdings, Inc. New Escrow | $ | 23,397 | Cost | New Issuer | ||||||
Wellfleet CLO Ltd. | $ | 234,836 | Cost | New Issuer |
See accompanying Notes to Financial Statements.
24
Touchstone High Yield Fund –March 31, 2020 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 91.5% | ||||||||
Communication Services — 20.5% | ||||||||
$ | 483,000 | Altice Financing SA (Luxembourg), 144a, 5.000%, 1/15/28 | $ | 427,455 | ||||
663,000 | Altice Financing SA (Luxembourg), 144a, 7.500%, 5/15/26 | 642,381 | ||||||
634,000 | Altice France SA (France), 144a, 7.375%, 5/1/26 | 629,340 | ||||||
635,000 | Altice France SA (France), 144a, 8.125%, 2/1/27 | 661,987 | ||||||
265,000 | AMC Networks, Inc., 4.750%, 8/1/25 | 257,713 | ||||||
114,000 | AMC Networks, Inc., 5.000%, 4/1/24 | 109,440 | ||||||
735,000 | Belo Corp., 7.250%, 9/15/27 | 771,750 | ||||||
337,000 | C&W Senior Financing DAC (Ireland), 144a, 6.875%, 9/15/27 | 290,663 | ||||||
565,000 | C&W Senior Financing DAC (Ireland), 144a, 7.500%, 10/15/26 | 517,577 | ||||||
385,000 | Cablevision Systems Corp., 5.875%, 9/15/22 | 388,850 | ||||||
1,088,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 4.500%, 8/15/30 | 1,066,240 | ||||||
211,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 4.500%, 5/1/32 | 205,767 | ||||||
2,007,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 4.750%, 3/1/30 | 1,996,965 | ||||||
297,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.125%, 5/1/27 | 297,772 | ||||||
413,000 | CCO Holdings LLC / CCO Holdings Capital Corp., 144a, 5.375%, 6/1/29 | 424,399 | ||||||
280,000 | CenturyLink, Inc., 5.625%, 4/1/25 | 281,397 | ||||||
25,000 | CenturyLink, Inc., 6.750%, 12/1/23 | 26,570 | ||||||
525,000 | CenturyLink, Inc., 144a, 4.000%, 2/15/27 | 509,250 | ||||||
741,000 | CommScope Technologies LLC, 144a, 5.000%, 3/15/27 | 642,817 | ||||||
628,000 | CommScope Technologies LLC, 144a, 5.500%, 6/15/24 | 579,958 | ||||||
150,000 | CommScope, Inc., 144a, 5.500%, 3/1/24 | 151,800 | ||||||
774,000 | Connect Finco SARL / Connect US Finco LLC (United Kingdom), 144a, 6.750%, 10/1/26 | 639,517 | ||||||
666,000 | CSC Holdings LLC, 5.250%, 6/1/24 | 667,658 | ||||||
534,000 | CSC Holdings LLC, 6.750%, 11/15/21 | 550,020 | ||||||
561,000 | CSC Holdings LLC, 144a, 5.500%, 5/15/26 | 580,270 | ||||||
667,000 | CSC Holdings LLC, 144a, 5.750%, 1/15/30 | 672,643 | ||||||
533,000 | CSC Holdings LLC, 144a, 6.500%, 2/1/29 | 574,835 | ||||||
485,000 | Diamond Sports Group LLC / Diamond Sports Finance Co., 144a, 5.375%, 8/15/26 | 394,072 | ||||||
1,191,000 | Diamond Sports Group LLC / Diamond Sports Finance Co., 144a, 6.625%, 8/15/27 | 796,481 | ||||||
2,496,000 | DISH DBS Corp., 5.875%, 7/15/22 | 2,430,655 | ||||||
502,000 | EW Scripps Co. (The), 144a, 5.125%, 5/15/25 | 441,760 | ||||||
515,000 | Front Range BidCo, Inc., 144a, 4.000%, 3/1/27 | 492,469 | ||||||
1,165,000 | GrubHub Holdings, Inc., 144a, 5.500%, 7/1/27 | 1,031,025 | ||||||
322,000 | Lamar Media Corp., 144a, 3.750%, 2/15/28 | 301,836 | ||||||
444,000 | LCPR Senior Secured Financing DAC (Ireland), 144a, 6.750%, 10/15/27 | 437,340 | ||||||
861,000 | Level 3 Financing, Inc., 144a, 4.625%, 9/15/27 | 855,748 | ||||||
474,000 | MDC Partners, Inc. (Canada), 144a, 6.500%, 5/1/24 | 355,500 | ||||||
611,000 | Netflix, Inc., 4.375%, 11/15/26 | 620,165 | ||||||
652,000 | Netflix, Inc., 4.875%, 4/15/28 | 671,560 | ||||||
680,000 | Netflix, Inc., 144a, 4.875%, 6/15/30 | 690,302 | ||||||
882,000 | Netflix, Inc., 144a, 5.375%, 11/15/29 | 915,207 | ||||||
334,000 | Nexstar Broadcasting, Inc., 144a, 5.625%, 8/1/24 | 314,374 | ||||||
695,000 | Nexstar Escrow, Inc., 144a, 5.625%, 7/15/27 | 679,362 | ||||||
76,000 | Outfront Media Capital LLC / Outfront Media Capital Corp., 144a, 4.625%, 3/15/30 | 67,640 | ||||||
1,433,000 | Photo Holdings Merger Sub, Inc., 144a, 8.500%, 10/1/26 | 1,160,730 | ||||||
552,000 | Qualitytech LP / QTS Finance Corp., 144a, 4.750%, 11/15/25 | 532,680 | ||||||
280,000 | Sable International Finance Ltd. (Chile), 144a, 5.750%, 9/7/27 | 252,000 | ||||||
265,000 | Sirius XM Radio, Inc., 144a, 5.000%, 8/1/27 | 268,949 | ||||||
591,000 | Sirius XM Radio, Inc., 144a, 5.500%, 7/1/29 | 602,820 | ||||||
2,512,000 | Sprint Capital Corp., 6.875%, 11/15/28 | 2,869,206 | ||||||
293,000 | Sprint Corp., 7.625%, 3/1/26 | 331,617 | ||||||
1,565,000 | Sprint Corp., 144a, 7.250%, 2/1/28 | 1,572,825 | ||||||
326,000 | TEGNA, Inc., 144a, 4.625%, 3/15/28 | 286,473 | ||||||
721,000 | TEGNA, Inc., 144a, 5.000%, 9/15/29 | 650,919 | ||||||
353,000 | Telecom Italia Capital SA (Italy), 6.000%, 9/30/34 | 349,470 | ||||||
865,000 | Telecom Italia Capital SA (Italy), 6.375%, 11/15/33 | 877,975 | ||||||
539,000 | T-Mobile USA, Inc., 4.500%, 2/1/26 | 551,128 | ||||||
205,000 | T-Mobile USA, Inc., 4.750%, 2/1/28 | 213,569 | ||||||
263,000 | Univision Communications, Inc., 144a, 5.125%, 2/15/25 | 224,208 | ||||||
667,000 | Virgin Media Secured Finance PLC (United Kingdom), 144a, 5.500%, 5/15/29 | 664,599 | ||||||
480,000 | Ziggo Bond Co. BV (Netherlands), 144a, 5.125%, 2/28/30 | 470,400 | ||||||
37,940,098 | ||||||||
Consumer Discretionary — 13.0% | ||||||||
122,000 | 1011778 BC ULC / New Red Finance, Inc. (Canada), 144a, 4.375%, 1/15/28 | 112,716 | ||||||
700,000 | 1011778 BC ULC / New Red Finance, Inc. (Canada), 144a, 5.000%, 10/15/25 | 668,493 | ||||||
723,000 | Adient US LLC, 144a, 7.000%, 5/15/26 | 668,775 | ||||||
535,000 | Ahern Rentals, Inc., 144a, 7.375%, 5/15/23 | 304,950 | ||||||
315,000 | American Airlines Group, Inc., 144a, 5.000%, 6/1/22 | 252,787 | ||||||
491,000 | American Axle & Manufacturing, Inc., 6.250%, 4/1/25 | 405,075 | ||||||
121,000 | American Axle & Manufacturing, Inc., 6.625%, 10/15/22 | 100,430 | ||||||
462,000 | AMN Healthcare, Inc., 144a, 5.125%, 10/1/24 | 444,675 | ||||||
505,000 | Avis Budget Car Rental LLC / Avis Budget Finance, Inc., 144a, 5.750%, 7/15/27 | 401,525 | ||||||
555,000 | Brinker International, Inc., 3.875%, 5/15/23 | 359,363 | ||||||
534,000 | Brinker International, Inc., 144a, 5.000%, 10/1/24 | 384,480 | ||||||
249,000 | Brookfield Residential Properties, Inc. (Canada), 144a, 6.375%, 5/15/25 | 224,100 | ||||||
428,000 | Brookfield Residential Properties, Inc. / Brookfield Residential US Corp. (Canada), 144a, 6.250%, 9/15/27 | 371,247 | ||||||
337,000 | Cedar Fair LP, 144a, 5.250%, 7/15/29 | 284,765 | ||||||
1,295,000 | Churchill Downs, Inc., 144a, 4.750%, 1/15/28 | 1,126,650 | ||||||
470,000 | Dana, Inc., 5.375%, 11/15/27 | 380,700 | ||||||
395,000 | Downstream Development Authority of the Quapaw Tribe of Oklahoma, 144a, 10.500%, 2/15/23 | 316,000 | ||||||
586,000 | Goodyear Tire & Rubber Co.(The), 8.750%, 8/15/20 | 578,675 | ||||||
337,000 | Group 1 Automotive, Inc., 144a, 5.250%, 12/15/23 | 345,846 | ||||||
481,000 | Hanesbrands, Inc., 144a, 4.625%, 5/15/24 | 476,190 | ||||||
503,000 | Herc Holdings, Inc., 144a, 5.500%, 7/15/27 | 467,790 | ||||||
770,000 | Hertz Corp.(The), 6.250%, 10/15/22 | 539,385 | ||||||
927,000 | Hertz Corp.(The), 144a, 5.500%, 10/15/24 | 525,887 | ||||||
344,000 | Hertz Corp.(The), 144a, 7.125%, 8/1/26 | 182,220 | ||||||
477,000 | Hilton Domestic Operating Co., Inc., 5.125%, 5/1/26 | 448,380 | ||||||
551,000 | International Game Technology PLC (United Kingdom), 144a, 6.250%, 2/15/22 | 506,650 |
25
Touchstone High Yield Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 91.5% (Continued) | ||||||||
Consumer Discretionary — (Continued) | ||||||||
$ | 445,000 | International Game Technology PLC (United Kingdom), 144a, 6.250%, 1/15/27 | $ | 387,150 | ||||
402,000 | Lennar Corp., 4.750%, 5/30/25 | 383,910 | ||||||
361,000 | Lennar Corp., 4.750%, 11/29/27 | 360,098 | ||||||
217,000 | Lennar Corp., 5.000%, 6/15/27 | 198,555 | ||||||
235,000 | Live Nation Entertainment, Inc., 144a, 4.750%, 10/15/27 | 209,150 | ||||||
399,000 | M/I Homes, Inc., 144a, 4.950%, 2/1/28 | 338,651 | ||||||
191,000 | Mattel, Inc., 144a, 5.875%, 12/15/27 | 196,310 | ||||||
1,252,000 | Mattel, Inc., 144a, 6.750%, 12/31/25 | 1,273,159 | ||||||
510,000 | MDC Holdings, Inc., 3.850%, 1/15/30 | 459,000 | ||||||
293,000 | Melco Resorts Finance Ltd. (Hong Kong), 144a, 5.375%, 12/4/29 | 251,823 | ||||||
644,000 | Meritage Homes Corp., 6.000%, 6/1/25 | 594,090 | ||||||
1,185,000 | Party City Holdings, Inc., 144a, 6.625%, 8/1/26 | 118,500 | ||||||
�� | 150,000 | PulteGroup, Inc., 5.500%, 3/1/26 | 147,520 | |||||
199,000 | PulteGroup, Inc., 6.000%, 2/15/35 | 200,493 | ||||||
969,000 | Quad/Graphics, Inc., 7.000%, 5/1/22 | 799,425 | ||||||
215,000 | Shea Homes LP / Shea Homes Funding Corp., 144a, 4.750%, 2/15/28 | 183,556 | ||||||
426,000 | Shea Homes LP / Shea Homes Funding Corp., 144a, 5.875%, 4/1/23 | 432,258 | ||||||
212,000 | Sonic Automotive, Inc., 6.125%, 3/15/27 | 186,560 | ||||||
874,000 | Speedway Motorsports LLC / Speedway Funding II, Inc., 144a, 4.875%, 11/1/27 | 786,600 | ||||||
543,000 | Taylor Morrison Communities, Inc., 144a, 5.875%, 6/15/27 | 504,322 | ||||||
1,003,000 | Taylor Morrison Communities, Inc. / Taylor Morrison Holdings II, Inc., 144a, 5.625%, 3/1/24 | 942,820 | ||||||
298,000 | Toll Brothers Finance Corp., 3.800%, 11/1/29 | 260,750 | ||||||
168,000 | Toll Brothers Finance Corp., 4.350%, 2/15/28 | 152,880 | ||||||
485,000 | Twin River Worldwide Holdings, Inc., 144a, 6.750%, 6/1/27 | 363,750 | ||||||
1,203,000 | United Rentals North America, Inc., 3.875%, 11/15/27 | 1,136,835 | ||||||
538,000 | United Rentals North America, Inc., 4.000%, 7/15/30 | 481,510 | ||||||
599,000 | United Rentals North America, Inc., 5.875%, 9/15/26 | 606,667 | ||||||
632,000 | Wyndham Hotels & Resorts, Inc., 144a, 5.375%, 4/15/26 | 549,840 | ||||||
599,000 | Wynn Macau Ltd. (Macao), 144a, 5.125%, 12/15/29 | 503,160 | ||||||
188,000 | Wynn Resorts Finance LLC / Wynn Resorts Capital Corp., 144a, 5.125%, 10/1/29 | 171,080 | ||||||
24,058,176 | ||||||||
Energy — 8.5% | ||||||||
1,281,000 | Ascent Resources Utica Holdings LLC / ARU Finance Corp., 144a, 7.000%, 11/1/26 | 356,009 | ||||||
1,045,000 | Blue Racer Midstream LLC / Blue Racer Finance Corp., 144a, 6.125%, 11/15/22 | 783,750 | ||||||
1,176,000 | Blue Racer Midstream LLC / Blue Racer Finance Corp., 144a, 6.625%, 7/15/26 | 682,080 | ||||||
577,000 | Cheniere Energy Partners LP, 5.625%, 10/1/26 | 530,840 | ||||||
795,000 | Chesapeake Energy Corp., 4.875%, 4/15/22 | 79,500 | ||||||
464,000 | Chesapeake Energy Corp., 5.750%, 3/15/23 | 45,240 | ||||||
171,000 | Chesapeake Energy Corp., 7.000%, 10/1/24 | 12,825 | ||||||
719,000 | CVR Energy, Inc., 144a, 5.250%, 2/15/25 | 559,022 | ||||||
725,000 | Delek Logistics Partners LP / Delek Logistics Finance Corp., 6.750%, 5/15/25 | 705,070 | ||||||
598,000 | Ensign Drilling, Inc. (Canada), 144a, 9.250%, 4/15/24 | 213,821 | ||||||
460,000 | Extraction Oil & Gas, Inc., 144a, 5.625%, 2/1/26 | 75,900 | ||||||
997,000 | FTS International, Inc., 6.250%, 5/1/22 | 346,458 | ||||||
797,000 | Genesis Energy LP / Genesis Energy Finance Corp., 5.625%, 6/15/24 | 557,900 | ||||||
717,000 | Genesis Energy LP / Genesis Energy Finance Corp., 6.000%, 5/15/23 | 520,076 | ||||||
506,000 | Genesis Energy LP / Genesis Energy Finance Corp., 6.250%, 5/15/26 | 354,200 | ||||||
225,000 | Global Partners LP / GLP Finance Corp., 7.000%, 8/1/27 | 168,750 | ||||||
1,343,000 | Gulfport Energy Corp., 6.375%, 5/15/25 | 325,677 | ||||||
417,000 | Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 5.000%, 12/1/24 | 191,820 | ||||||
345,000 | Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 5.750%, 10/1/25 | 158,700 | ||||||
435,000 | Hilcorp Energy I LP / Hilcorp Finance Co., 144a, 6.250%, 11/1/28 | 191,400 | ||||||
735,000 | MEG Energy Corp. (Canada), 144a, 7.125%, 2/1/27 | 363,178 | ||||||
1,161,000 | Montage Resources Corp., 8.875%, 7/15/23 | 783,675 | ||||||
218,000 | Nabors Industries Ltd., 144a, 7.250%, 1/15/26 | 74,120 | ||||||
255,000 | Nabors Industries Ltd., 144a, 7.500%, 1/15/28 | 81,600 | ||||||
869,000 | NGL Energy Partners LP / NGL Energy Finance Corp., 7.500%, 11/1/23 | 301,977 | ||||||
1,072,000 | NuStar Logistics LP, 5.625%, 4/28/27 | 824,154 | ||||||
531,000 | NuStar Logistics LP, 6.000%, 6/1/26 | 392,940 | ||||||
175,000 | Parkland Fuel Corp. (Canada), 144a, 6.000%, 4/1/26 | 162,750 | ||||||
421,000 | PDC Energy, Inc., 5.750%, 5/15/26 | 235,760 | ||||||
914,000 | PDC Energy, Inc., 6.125%, 9/15/24 | 487,848 | ||||||
1,053,000 | Peabody Energy Corp., 144a, 6.375%, 3/31/25 | 547,560 | ||||||
897,000 | Precision Drilling Corp. (Canada), 7.750%, 12/15/23 | 358,800 | ||||||
1,379,000 | Shelf Drilling Holdings Ltd. (United Arab Emirates), 144a, 8.250%, 2/15/25 | 659,162 | ||||||
655,000 | SM Energy Co., 5.625%, 6/1/25 | 178,494 | ||||||
789,000 | Sunoco LP / Sunoco Finance Corp., 6.000%, 4/15/27 | 678,540 | ||||||
1,130,000 | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., 144a, 5.500%, 9/15/24 | 621,500 | ||||||
253,000 | Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp., 144a, 5.500%, 1/15/28 | 131,560 | ||||||
313,000 | TerraForm Power Operating LLC, 144a, 4.250%, 1/31/23 | 310,653 | ||||||
1,056,000 | TerraForm Power Operating LLC, 144a, 4.750%, 1/15/30 | 1,024,320 | ||||||
313,000 | TerraForm Power Operating LLC, 144a, 5.000%, 1/31/28 | 327,961 | ||||||
2,401,000 | Unit Corp., 6.625%, 5/15/21 | 170,231 | ||||||
15,575,821 | ||||||||
Consumer Staples — 8.3% | ||||||||
216,000 | Albertsons Cos, Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 144a, 3.500%, 2/15/23 | 212,652 | ||||||
787,000 | Albertsons Cos, Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 144a, 4.625%, 1/15/27 | 783,065 | ||||||
533,000 | Albertsons Cos, Inc. / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 144a, 4.875%, 2/15/30 | 531,668 | ||||||
370,000 | Albertsons Cos. LLC / Safeway, Inc. / New Albertsons LP / Albertsons LLC, 144a, 7.500%, 3/15/26 | 398,786 | ||||||
1,193,000 | American Builders & Contractors Supply Co., Inc., 144a, 4.000%, 1/15/28 | 1,085,630 | ||||||
122,000 | Beacon Roofing Supply, Inc., 144a, 4.500%, 11/15/26 | 112,582 | ||||||
808,000 | Beacon Roofing Supply, Inc., 144a, 4.875%, 11/1/25 | 729,220 | ||||||
723,000 | Cardtronics, Inc. / Cardtronics USA, Inc., 144a, 5.500%, 5/1/25 | 686,850 | ||||||
788,000 | Carriage Services, Inc., 144a, 6.625%, 6/1/26 | 774,210 | ||||||
1,948,000 | Cimpress PLC (Ireland), 144a, 7.000%, 6/15/26 | 1,714,240 |
26
Touchstone High Yield Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 91.5% (Continued) | ||||||||
Consumer Staples — (Continued) | ||||||||
$ | 929,000 | JBS USA LUX SA / JBS USA Finance, Inc., 144a, 5.875%, 7/15/24 | $ | 940,612 | ||||
563,000 | JBS USA LUX SA / JBS USA Finance, Inc., 144a, 6.750%, 2/15/28 | 601,002 | ||||||
894,000 | JBS USA LUX SA / JBS USA Food Co. / JBS USA Finance, Inc., 144a, 5.500%, 1/15/30 | 923,055 | ||||||
384,000 | JBS USA LUX SA / JBS USA Food Co. / JBS USA Finance, Inc., 144a, 6.500%, 4/15/29 | 411,917 | ||||||
383,000 | Kraft Heinz Foods Co., 144a, 4.875%, 2/15/25 | 383,861 | ||||||
301,000 | Pilgrim's Pride Corp., 144a, 5.875%, 9/30/27 | 299,916 | ||||||
483,000 | Post Holdings, Inc., 144a, 4.625%, 4/15/30 | 462,473 | ||||||
915,000 | Post Holdings, Inc., 144a, 5.000%, 8/15/26 | 941,672 | ||||||
324,000 | Post Holdings, Inc., 144a, 5.500%, 12/15/29 | 336,085 | ||||||
822,000 | QVC, Inc., 4.750%, 2/15/27 | 727,078 | ||||||
93,000 | Spectrum Brands, Inc., 144a, 5.000%, 10/1/29 | 79,050 | ||||||
1,668,000 | Staples, Inc., 144a, 7.500%, 4/15/26 | 1,474,095 | ||||||
278,000 | Sysco Corp., 5.650%, 4/1/25 | 289,415 | ||||||
309,000 | Yum! Brands, Inc., 144a, 4.750%, 1/15/30 | 290,460 | ||||||
191,000 | Yum! Brands, Inc., 144a, 7.750%, 4/1/25 | 200,550 | ||||||
15,390,144 | ||||||||
Health Care — 8.0% | ||||||||
130,000 | Acadia Healthcare Co., Inc., 5.125%, 7/1/22 | 123,907 | ||||||
1,194,000 | Acadia Healthcare Co., Inc., 5.625%, 2/15/23 | 1,125,214 | ||||||
714,000 | Bausch Health Americas, Inc., 144a, 8.500%, 1/31/27 | 746,130 | ||||||
878,000 | Bausch Health Cos, Inc., 144a, 5.000%, 1/30/28 | 831,202 | ||||||
933,000 | Bausch Health Cos, Inc., 144a, 6.125%, 4/15/25 | 919,005 | ||||||
738,000 | Bausch Health Cos, Inc., 144a, 6.500%, 3/15/22 | 745,380 | ||||||
90,000 | Bausch Health Cos, Inc. (Canada), 144a, 5.875%, 5/15/23 | 89,550 | ||||||
287,000 | Bausch Health Cos, Inc. (Canada), 144a, 7.000%, 1/15/28 | 294,577 | ||||||
358,000 | Centene Corp., 144a, 4.250%, 12/15/27 | 350,840 | ||||||
225,000 | Centene Corp., 144a, 5.375%, 8/15/26 | 229,500 | ||||||
544,000 | CHS/Community Health Systems, Inc., 6.250%, 3/31/23 | 516,460 | ||||||
798,000 | DaVita, Inc., 5.125%, 7/15/24 | 795,606 | ||||||
113,000 | Encompass Health Corp., 4.750%, 2/1/30 | 110,740 | ||||||
74,000 | Encompass Health Corp., 5.750%, 11/1/24 | 74,348 | ||||||
1,060,000 | HCA, Inc., 3.500%, 9/1/30 | 961,644 | ||||||
325,000 | HCA, Inc., 5.375%, 9/1/26 | 334,750 | ||||||
395,000 | HCA, Inc., 5.875%, 2/15/26 | 415,737 | ||||||
228,000 | HCA, Inc., 5.875%, 2/1/29 | 241,110 | ||||||
1,059,000 | HLF Financing Sarl LLC / Herbalife International, Inc., 144a, 7.250%, 8/15/26 | 900,150 | ||||||
683,000 | Horizon Therapeutics USA, Inc., 144a, 5.500%, 8/1/27 | 685,664 | ||||||
983,000 | MEDNAX, Inc., 144a, 5.250%, 12/1/23 | 801,145 | ||||||
948,000 | MEDNAX, Inc., 144a, 6.250%, 1/15/27 | 760,770 | ||||||
1,021,000 | Select Medical Corp., 144a, 6.250%, 8/15/26 | 1,021,000 | ||||||
562,000 | Teleflex, Inc., 4.875%, 6/1/26 | 556,380 | ||||||
705,000 | Tenet Healthcare Corp., 5.125%, 5/1/25 | 673,275 | ||||||
238,000 | Tenet Healthcare Corp., 144a, 6.250%, 2/1/27 | 232,050 | ||||||
198,000 | Teva Pharmaceutical Finance Netherlands III BV (Israel), 6.750%, 3/1/28 | 188,595 | ||||||
14,724,729 | ||||||||
Industrials — 7.0% | ||||||||
58,000 | Advanced Drainage Systems, Inc., 144a, 5.000%, 9/30/27 | 51,620 | ||||||
520,000 | AECOM Global II LLC / URS Fox US LP, 5.000%, 4/1/22 | 483,600 | ||||||
416,000 | Amsted Industries, Inc., 144a, 4.625%, 5/15/30 | 371,280 | ||||||
625,000 | Amsted Industries, Inc., 144a, 5.625%, 7/1/27 | 608,072 | ||||||
510,000 | Ardagh Packaging Finance PLC / Ardagh Holdings USA, Inc., 144a, 6.000%, 2/15/25 | 511,428 | ||||||
591,000 | Bombardier, Inc. (Canada), 144a, 6.000%, 10/15/22 | 443,250 | ||||||
1,622,000 | Cascades, Inc./Cascades USA, Inc. (Canada), 144a, 5.375%, 1/15/28 | 1,549,010 | ||||||
1,232,000 | Fortress Transportation & Infrastructure Investors LLC, 144a, 6.750%, 3/15/22 | 1,140,302 | ||||||
211,000 | HD Supply, Inc., 144a, 5.375%, 10/15/26 | 205,117 | ||||||
612,000 | JB Poindexter & Co., Inc., 144a, 7.125%, 4/15/26 | 566,354 | ||||||
205,000 | Louisiana-Pacific Corp., 4.875%, 9/15/24 | 176,813 | ||||||
771,000 | Moog, Inc., 144a, 4.250%, 12/15/27 | 695,827 | ||||||
701,000 | New Enterprise Stone & Lime Co., Inc., 144a, 6.250%, 3/15/26 | 644,920 | ||||||
307,000 | Norbord, Inc. (Canada), 144a, 5.750%, 7/15/27 | 280,265 | ||||||
682,000 | Owens-Brockway Glass Container, Inc., 144a, 5.875%, 8/15/23 | 668,360 | ||||||
1,077,000 | Plastipak Holdings, Inc., 144a, 6.250%, 10/15/25 | 963,915 | ||||||
470,000 | Sealed Air Corp., 144a, 4.000%, 12/1/27 | 437,147 | ||||||
289,000 | Standard Industries, Inc./NJ, 144a, 5.375%, 11/15/24 | 278,885 | ||||||
466,000 | TransDigm, Inc., 144a, 6.250%, 3/15/26 | 464,253 | ||||||
270,000 | Triumph Group, Inc., 5.250%, 6/1/22 | 222,750 | ||||||
217,000 | Triumph Group, Inc., 144a, 6.250%, 9/15/24 | 193,414 | ||||||
1,036,000 | Trivium Packaging Finance BV (Netherlands), 144a, 5.500%, 8/15/26 | 1,030,820 | ||||||
982,000 | XPO Logistics, Inc., 144a, 6.750%, 8/15/24 | 960,200 | ||||||
12,947,602 | ||||||||
Financials — 6.3% | ||||||||
180,000 | Ally Financial, Inc., 5.750%, 11/20/25 | 176,076 | ||||||
645,000 | Ally Financial, Inc., 8.000%, 11/1/31 | 730,462 | ||||||
175,000 | Ally Financial, Inc., 8.000%, 11/1/31 | 202,773 | ||||||
294,000 | Bank of America Corp., (3M LIBOR +3.898%), 6.100%(A)(B) | 296,940 | ||||||
1,631,000 | Cooke Omega Investments, Inc. / Alpha VesselCo Holdings Inc. (Canada), 144a, 8.500%, 12/15/22 | 1,606,535 | ||||||
528,000 | Credit Acceptance Corp., 6.625%, 3/15/26 | 501,442 | ||||||
486,000 | Credit Acceptance Corp., 144a, 5.125%, 12/31/24 | 442,260 | ||||||
455,000 | Fairstone Financial, Inc. (Canada), 144a, 7.875%, 7/15/24 | 427,700 | ||||||
752,000 | goeasy Ltd. (Canada), 144a, 5.375%, 12/1/24 | 701,014 | ||||||
391,000 | Goldman Sachs Group, Inc. (The)., Ser P, (3M LIBOR+2.874%), 5.000%(A)(B) | 332,839 | ||||||
730,000 | Navient Corp., 5.500%, 1/25/23 | 686,200 | ||||||
1,113,000 | Navient Corp., 5.875%, 10/25/24 | 1,023,960 | ||||||
1,208,000 | Prime Security Services Borrower LLC / Prime Finance, Inc., 144a, 5.750%, 4/15/26 | 1,183,840 | ||||||
525,000 | Prime Security Services Borrower LLC / Prime Finance, Inc., 144a, 6.250%, 1/15/28 | 452,812 | ||||||
932,000 | Quicken Loans, Inc., 144a, 5.250%, 1/15/28 | 911,310 | ||||||
386,000 | Quicken Loans, Inc., 144a, 5.750%, 5/1/25 | 384,070 | ||||||
430,000 | Radian Group, Inc., 4.500%, 10/1/24 | 423,550 | ||||||
457,000 | Springleaf Finance Corp., 5.375%, 11/15/29 | 418,155 | ||||||
293,000 | Springleaf Finance Corp., 6.125%, 3/15/24 | 288,623 | ||||||
156,000 | Springleaf Finance Corp., 6.625%, 1/15/28 | 147,420 | ||||||
159,000 | Springleaf Finance Corp., 6.875%, 3/15/25 | 160,132 | ||||||
172,000 | Springleaf Finance Corp., 7.125%, 3/15/26 | 170,280 | ||||||
11,668,393 | ||||||||
Materials — 6.1% | ||||||||
503,000 | Alcoa Nederland Holding BV, 144a, 6.750%, 9/30/24 | 487,759 | ||||||
876,000 | Alcoa Nederland Holding BV, 144a, 7.000%, 9/30/26 | 814,680 | ||||||
503,000 | Alcoa Nederland Holding BV (Netherlands), 144a, 6.125%, 5/15/28 | 457,730 |
27
Touchstone High Yield Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 91.5% (Continued) | ||||||||
Materials — (Continued) | ||||||||
$ | 273,000 | Arconic Corp., 144a, 6.125%, 2/15/28 | $ | 279,142 | ||||
330,000 | Clearwater Paper Corp., 4.500%, 2/1/23 | 300,300 | ||||||
336,000 | Clearwater Paper Corp., 144a, 5.375%, 2/1/25 | 305,760 | ||||||
225,000 | Commercial Metals Co., 4.875%, 5/15/23 | 212,063 | ||||||
453,000 | Commercial Metals Co., 5.750%, 4/15/26 | 422,828 | ||||||
761,000 | CVR Partners LP / CVR Nitrogen Finance Corp., 144a, 9.250%, 6/15/23 | 610,094 | ||||||
802,000 | Freeport-McMoRan, Inc., 3.875%, 3/15/23 | 757,890 | ||||||
533,000 | Freeport-McMoRan, Inc., 4.125%, 3/1/28 | 465,042 | ||||||
1,040,000 | Freeport-McMoRan, Inc., 5.000%, 9/1/27 | 965,588 | ||||||
362,000 | Freeport-McMoRan, Inc., 5.400%, 11/14/34 | 334,850 | ||||||
1,288,000 | Hudbay Minerals, Inc. (Canada), 144a, 7.625%, 1/15/25 | 1,120,560 | ||||||
249,000 | NOVA Chemicals Corp. (Canada), 144a, 4.875%, 6/1/24 | 218,498 | ||||||
473,000 | NOVA Chemicals Corp. (Canada), 144a, 5.250%, 8/1/23 | 410,649 | ||||||
764,000 | Novelis Corp., 144a, 5.875%, 9/30/26 | 749,763 | ||||||
889,000 | Nufarm Australia Ltd. / Nufarm Americas, Inc. (Australia), 144a, 5.750%, 4/30/26 | 768,985 | ||||||
481,000 | Olin Corp., 5.125%, 9/15/27 | 425,685 | ||||||
394,000 | Steel Dynamics, Inc., 4.125%, 9/15/25 | 376,853 | ||||||
251,000 | Steel Dynamics, Inc., 5.000%, 12/15/26 | 248,947 | ||||||
588,000 | Teck Resources Ltd. (Canada), 6.250%, 7/15/41 | 508,274 | ||||||
11,241,940 | ||||||||
Real Estate — 5.8% | ||||||||
196,000 | Brookfield Property REIT, Inc. / BPR Cumulus LLC / BPR Nimbus LLC / GGSI Sellco LL, 144a, 5.750%, 5/15/26 | 159,030 | ||||||
1,087,000 | CoreCivic, Inc. REIT, 4.625%, 5/1/23 | 989,170 | ||||||
1,218,000 | CoreCivic, Inc. REIT, 5.000%, 10/15/22 | 1,148,730 | ||||||
455,000 | ESH Hospitality, Inc. REIT, 144a, 4.625%, 10/1/27 | 354,900 | ||||||
1,677,000 | GEO Group, Inc. (The) REIT, 5.875%, 1/15/22 | 1,509,300 | ||||||
510,000 | GLP Capital LP / GLP Financing II, Inc. REIT, 5.375%, 4/15/26 | 452,064 | ||||||
856,000 | Iron Mountain US Holdings, Inc. REIT, 144a, 5.375%, 6/1/26 | 864,560 | ||||||
463,000 | Iron Mountain, Inc. REIT, 144a, 4.875%, 9/15/29 | 434,933 | ||||||
968,000 | Iron Mountain, Inc. REIT, 144a, 5.250%, 3/15/28 | 956,190 | ||||||
845,000 | MGM Growth Properties Operating Partnership LP / MGP Finance Co.-Issuer, Inc. REIT, 4.500%, 9/1/26 | 701,350 | ||||||
570,000 | MGM Growth Properties Operating Partnership LP / MGP Finance Co.-Issuer, Inc. REIT, 5.625%, 5/1/24 | 547,200 | ||||||
496,000 | MPT Operating Partnership LP / MPT Finance Corp. REIT, 5.250%, 8/1/26 | 486,608 | ||||||
202,000 | MPT Operating Partnership LP / MPT Finance Corp. REIT, 5.500%, 5/1/24 | 196,445 | ||||||
1,362,000 | Sabra Health Care LP REIT, 5.125%, 8/15/26 | 1,287,996 | ||||||
168,000 | VICI Properties LP / VICI Note Co., Inc. REIT, 144a, 3.750%, 2/15/27 | 158,340 | ||||||
519,000 | VICI Properties LP / VICI Note Co., Inc. REIT, 144a, 4.250%, 12/1/26 | 476,183 | ||||||
10,722,999 | ||||||||
Utilities — 4.5% | ||||||||
653,000 | Calpine Corp., 144a, 4.500%, 2/15/28 | 632,920 | ||||||
669,000 | Calpine Corp., 144a, 5.250%, 6/1/26 | 635,550 | ||||||
389,000 | Clearway Energy Operating LLC, 5.000%, 9/15/26 | 376,357 | ||||||
603,000 | Clearway Energy Operating LLC, 5.750%, 10/15/25 | 596,970 | ||||||
207,000 | Clearway Energy Operating LLC, 144a, 4.750%, 3/15/28 | 191,993 | ||||||
2,119,000 | DPL, Inc., 144a, 4.350%, 4/15/29 | 2,014,161 | ||||||
198,000 | NRG Energy, Inc., 5.750%, 1/15/28 | 201,960 | ||||||
1,188,000 | Rockpoint Gas Storage Canada Ltd. (Canada), 144a, 7.000%, 3/31/23 | 864,282 | ||||||
409,000 | Superior Plus LP / Superior General Partner, Inc. (Canada), 144a, 7.000%, 7/15/26 | 398,775 | ||||||
975,000 | Talen Energy Supply LLC, 144a, 7.250%, 5/15/27 | 881,107 | ||||||
1,451,000 | Vistra Operations Co. LLC, 144a, 5.625%, 2/15/27 | 1,496,344 | ||||||
8,290,419 | ||||||||
Information Technology — 3.5% | ||||||||
364,000 | Camelot Finance SA (Luxembourg), 144a, 4.500%, 11/1/26 | 353,080 | ||||||
671,000 | CDK Global, Inc., 4.875%, 6/1/27 | 687,775 | ||||||
211,000 | j2 Cloud Services LLC / j2 Global Co.-Obligor, Inc., 144a, 6.000%, 7/15/25 | 209,415 | ||||||
181,000 | Match Group, Inc., 144a, 5.000%, 12/15/27 | 172,855 | ||||||
235,000 | MTS Systems Corp., 144a, 5.750%, 8/15/27 | 217,963 | ||||||
460,000 | NCR Corp., 144a, 5.750%, 9/1/27 | 418,600 | ||||||
862,000 | Open Text Corp. (Canada), 144a, 3.875%, 2/15/28 | 810,280 | ||||||
676,000 | Open Text Corp. (Canada), 144a, 5.875%, 6/1/26 | 709,056 | ||||||
277,000 | Pitney Bowes, Inc., 4.625%, 5/15/22 | 242,846 | ||||||
286,000 | PTC, Inc., 144a, 4.000%, 2/15/28 | 274,646 | ||||||
1,016,000 | SS&C Technologies, Inc., 144a, 5.500%, 9/30/27 | 1,058,885 | ||||||
674,000 | VeriSign, Inc., 4.750%, 7/15/27 | 698,534 | ||||||
644,000 | Western Digital Corp., 4.750%, 2/15/26 | 653,660 | ||||||
6,507,595 | ||||||||
Total Corporate Bonds | $ | 169,067,916 |
Shares | ||||||||
Short-Term Investment Fund — 2.1% | ||||||||
3,887,203 | Dreyfus Government Cash Management,Institutional Shares, 0.29%∞Ω | $ | 3,887,203 | |||||
Total Investment Securities — 93.6% | ||||||||
(Cost $199,269,470) | $ | 172,955,119 | ||||||
Other Assets in | ||||||||
Excess of Liabilities — 6.4% | 11,895,415 | |||||||
Net Assets — 100.0% | $ | 184,850,534 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2020. | |
(B) | Perpetual Bond - A bond or preferred stock with no definite maturity date. | |
∞ | Open-End Fund. | |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
DAC - Designated Activity Company
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
PLC - Public Limited Company
REIT - Real Estate Investment Trust
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2020, these securities were valued at $110,888,358 or 60.0% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
28
Touchstone High Yield Fund(Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds | $ | — | $ | 169,067,916 | $ | — | $ | 169,067,916 | ||||||||
Short-Term Investment Fund | 3,887,203 | — | — | 3,887,203 | ||||||||||||
Total | $ | 3,887,203 | $ | 169,067,916 | $ | — | $ | 172,955,119 |
See accompanying Notes to Financial Statements.
29
Touchstone Impact Bond Fund – March 31, 2020 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 29.4% | ||||||||
Industrials — 9.3% | ||||||||
$ | 2,698,408 | American Airlines 2016-3 Class AA Pass Through Trust, 3.000%, 10/15/28 | $ | 2,546,607 | ||||
5,407 | Burlington Northern and Santa Fe Railway Co. 2004-1 Pass Through Trust, 4.575%, 1/15/21 | 5,481 | ||||||
81,255 | Burlington Northern and Santa Fe Railway Co. 2005-3 Pass Through Trust, 4.830%, 1/15/23 | 83,493 | ||||||
782,450 | Burlington Northern and Santa Fe Railway Co. 2005-4 Pass Through Trust, 4.967%, 4/1/23 | 802,857 | ||||||
391,008 | Continental Airlines 2000-2 Class A-1 Pass Through Trust, 7.707%, 4/2/21 | 393,829 | ||||||
1,527,414 | Continental Airlines 2007-1 Class A Pass Through Trust, 5.983%, 4/19/22 | 1,566,028 | ||||||
707,802 | Continental Airlines 2012-2 Class A Pass Through Trust, 4.000%, 10/29/24 | 684,271 | ||||||
1,731,742 | CSX Transportation, Inc., 6.251%, 1/15/23 | 1,897,311 | ||||||
444,502 | Delta Air Lines 2007-1 Class B Pass Through Trust, 8.021%, 8/10/22 | 455,434 | ||||||
1,485,000 | Delta Air Lines 2019-1 Class AA Pass Through Trust, 3.204%, 4/25/24 | 1,449,699 | ||||||
363,346 | Federal Express Corp. 1999 Pass Through Trust, 7.650%, 1/15/23 | 390,738 | ||||||
2,135,000 | FedEx Corp., 4.000%, 1/15/24 | 2,227,681 | ||||||
2,583,000 | GATX Corp., 3.250%, 3/30/25 | 2,626,855 | ||||||
2,000,000 | John Deere Capital Corp. MTN, 2.800%, 9/8/27 | 1,972,830 | ||||||
1,180,000 | Kansas City Southern, 3.000%, 5/15/23 | 1,117,331 | ||||||
1,475,000 | Kansas City Southern, 3.125%, 6/1/26 | 1,457,728 | ||||||
1,941,000 | Norfolk Southern Corp., 2.903%, 2/15/23 | 1,968,974 | ||||||
1,408,000 | Republic Services, Inc., 5.250%, 11/15/21 | 1,480,804 | ||||||
1,855,000 | SBA Tower Trust, 144a, 3.168%, 4/11/22 | 1,844,655 | ||||||
856,071 | Southwest Airlines Co. 2007-1 Pass Through Trust, 6.150%, 8/1/22 | 880,295 | ||||||
612,212 | Union Pacific Railroad Co. 2003 Pass Through Trust, 4.698%, 1/2/24 | 625,184 | ||||||
413,606 | Union Pacific Railroad Co. 2006 Pass Through Trust, 5.866%, 7/2/30 | 495,675 | ||||||
1,410,000 | United Rentals North America, Inc., 4.875%, 1/15/28 | 1,367,700 | ||||||
1,616,000 | Waste Management, Inc., 2.400%, 5/15/23 | 1,589,193 | ||||||
29,930,653 | ||||||||
Financials — 7.8% | ||||||||
2,444,000 | Aflac, Inc., 3.250%, 3/17/25 | 2,511,010 | ||||||
2,600,000 | American Express Co., 2.650%, 12/2/22 | 2,626,993 | ||||||
1,657,943 | Fishers Lane Associates LLC, 144a, 3.666%, 8/5/30 | 1,852,945 | ||||||
1,950,000 | KeyBank NA/Cleveland OH, 3.350%, 6/15/21 | 1,968,610 | ||||||
2,386,000 | National Rural Utilities Cooperative Finance Corp., 3.400%, 11/15/23 | 2,513,847 | ||||||
1,380,000 | Nationwide Financial Services, Inc., 144a, 5.375%, 3/25/21 | 1,395,823 | ||||||
708,000 | Nationwide Mutual Insurance Co., 144a, 9.375%, 8/15/39 | 1,106,397 | ||||||
1,541,000 | PNC Bank NA, 2.500%, 1/22/21 | 1,544,058 | ||||||
1,404,000 | Progressive Corp.(The), 4.200%, 3/15/48 | 1,579,179 | ||||||
2,040,000 | Reliance Standard Life Global Funding II, 144a, 2.750%, 1/21/27 | 1,896,239 | ||||||
1,398,000 | Torchmark Corp., 3.800%, 9/15/22 | 1,484,188 | ||||||
792,000 | Unum Group, 7.250%, 3/15/28 | 982,019 | ||||||
2,000,000 | USB Capital IX, (3M LIBOR +1.020%), 3.500%, 10/15/68(A)(B) | 1,490,000 | ||||||
2,000,000 | Wachovia Capital Trust III, (3M LIBOR +0.930%), 5.570%, 3/15/69(A)(B) | 1,940,000 | ||||||
24,891,308 | ||||||||
Utilities — 5.7% | ||||||||
1,623,000 | California Water Service Co., 5.500%, 12/1/40 | 2,000,179 | ||||||
1,598,000 | Commonwealth Edison Co., 5.900%, 3/15/36 | 1,889,149 | ||||||
1,983,000 | Dominion Energy South Carolina, Inc., 4.600%, 6/15/43 | 2,398,234 | ||||||
2,080,000 | Duke Energy Progress LLC, 6.300%, 4/1/38 | 2,840,549 | ||||||
2,382,000 | Entergy Louisiana LLC, 4.440%, 1/15/26 | 2,565,085 | ||||||
1,642,000 | Georgia Power Co., 4.750%, 9/1/40 | 1,612,112 | ||||||
147,913 | Kiowa Power Partners LLC, 144a, 5.737%, 3/30/21 | 152,707 | ||||||
2,000,000 | NextEra Energy Capital Holdings, Inc., (3M LIBOR+2.068%), 3.501%, 10/1/66(A) | 1,423,020 | ||||||
2,926,000 | PacifiCorp., 8.050%, 9/1/22 | 3,247,031 | ||||||
18,128,066 | ||||||||
Health Care — 1.5% | ||||||||
2,363,556 | CVS Pass-Through Trust, 6.036%, 12/10/28 | 2,564,883 | ||||||
2,105,000 | HCA, Inc., 5.250%, 4/15/25 | 2,207,664 | ||||||
4,772,547 | ||||||||
Consumer Discretionary — 1.4% | ||||||||
2,347,000 | Ford Motor Credit Co. LLC, 4.375%, 8/6/23 | 2,133,658 | ||||||
990,000 | PulteGroup, Inc., 7.875%, 6/15/32 | 1,089,000 | ||||||
1,300,000 | Royal Caribbean Cruises Ltd. (Liberia), 5.250%, 11/15/22 | 942,376 | ||||||
466,000 | Service Corp. International, 5.375%, 5/15/24 | 474,155 | ||||||
4,639,189 | ||||||||
Energy — 1.4% | ||||||||
592,000 | Spectra Energy Partners LP, 3.500%, 3/15/25 | 552,078 | ||||||
2,482,000 | Tennessee Valley Authority, 4.650%, 6/15/35 | 3,317,750 | ||||||
500,000 | Texas Eastern Transmission LP, 7.000%, 7/15/32 | 638,848 | ||||||
4,508,676 | ||||||||
Real Estate — 0.9% | ||||||||
1,500,000 | American Tower Corp. REIT, 3.125%, 1/15/27 | 1,464,154 | ||||||
1,500,000 | Crown Castle International Corp. REIT, 4.300%, 2/15/29 | 1,553,878 | ||||||
3,018,032 | ||||||||
Consumer Staples — 0.9% | ||||||||
1,500,000 | Kroger Co. (The), 3.850%, 8/1/23 | 1,603,060 | ||||||
1,000,000 | Kroger Co.(The), 4.500%, 1/15/29† | 1,117,229 | ||||||
2,720,289 | ||||||||
Communication Services — 0.5% | ||||||||
1,250,000 | Verizon Communications, Inc., 5.012%, 4/15/49 | 1,679,802 | ||||||
Total Corporate Bonds | $ | 94,288,562 | ||||||
U.S. Government Agency Obligations — 26.6% | ||||||||
1,256,000 | Canal Barge Co., Inc., 4.500%, 11/12/34 | 1,509,143 | ||||||
1,161,436 | Helios Leasing I LLC, 1.734%, 7/24/24 | 1,173,837 | ||||||
1,111,000 | Matson Navigation Co., Inc., 5.337%, 9/4/28 | 1,300,546 | ||||||
876,000 | Petroleos Mexicanos (Mexico), 2.290%, 2/15/24 | 896,224 | ||||||
2,057,053 | Reliance Industries Ltd. (India), 1.870%, 1/15/26 | 2,070,048 | ||||||
33,964 | Small Business Administration Participation Certificates, Ser 2002-20H, Class 1, 5.310%, 8/1/22 | 34,995 | ||||||
14,200 | Small Business Administration Participation Certificates, Ser 2003-20D, Class 1, 4.760%, 4/1/23 | 14,618 | ||||||
59,160 | Small Business Administration Participation Certificates, Ser 2004-20D, Class 1, 4.770%, 4/1/24 | 61,472 | ||||||
122,184 | Small Business Administration Participation Certificates, Ser 2004-20K, Class 1, 4.880%, 11/1/24 | 128,481 | ||||||
101,099 | Small Business Administration Participation Certificates, Ser 2005-20H, Class 1, 5.110%, 8/1/25 | 107,138 | ||||||
173,971 | Small Business Administration Participation Certificates, Ser 2006-20H, Class 1, 5.700%, 8/1/26 | 187,335 |
30
Touchstone Impact Bond Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Agency Obligations — 26.6% (Continued) | ||||||||
$ | 226,684 | Small Business Administration Participation Certificates, Ser 2006-20K, Class 1, 5.360%, 11/1/26 | $ | 242,451 | ||||
389,311 | Small Business Administration Participation Certificates, Ser 2006-20L, Class 1, 5.120%, 12/1/26 | 414,845 | ||||||
318,025 | Small Business Administration Participation Certificates, Ser 2007-20A, Class 1, 5.320%, 1/1/27 | 339,218 | ||||||
476,534 | �� | Small Business Administration Participation Certificates, Ser 2007-20E, Class 1, 5.310%, 5/1/27 | 512,354 | |||||
270,605 | Small Business Administration Participation Certificates, Ser 2007-20F, Class 1, 5.710%, 6/1/27 | 291,627 | ||||||
818,475 | Small Business Administration Participation Certificates, Ser 2007-20L, Class 1, 5.290%, 12/1/27 | 873,287 | ||||||
254,813 | Small Business Administration Participation Certificates, Ser 2008-20A, Class 1, 5.170%, 1/1/28 | 274,240 | ||||||
462,364 | Small Business Administration Participation Certificates, Ser 2008-20K, Class 1, 6.770%, 11/1/28 | 511,525 | ||||||
820,269 | Small Business Administration Participation Certificates, Ser 2009-20C, Class 1, 4.660%, 3/1/29 | 874,761 | ||||||
506,581 | Small Business Administration Participation Certificates, Ser 2009-20D, Class 1, 4.310%, 4/1/29 | 542,727 | ||||||
572,535 | Small Business Administration Participation Certificates, Ser 2009-20E, Class 1, 4.430%, 5/1/29 | 608,256 | ||||||
323,074 | Small Business Administration Participation Certificates, Ser 2009-20F, Class 1, 4.950%, 6/1/29 | 350,024 | ||||||
1,057,493 | Small Business Administration Participation Certificates, Ser 2009-20J, Class 1, 3.920%, 10/1/29 | 1,106,946 | ||||||
1,674,557 | Small Business Administration Participation Certificates, Ser 2010-20F, Class 1, 3.880%, 6/1/30 | 1,791,882 | ||||||
3,119,986 | Small Business Administration Participation Certificates, Ser 2010-20I, Class 1, 3.210%, 9/1/30 | 3,225,301 | ||||||
355,378 | Small Business Administration Participation Certificates, Ser 2012-10C, Class 1, 1.240%, 5/1/22 | 356,564 | ||||||
5,778,026 | Small Business Administration Participation Certificates, Ser 2013-20C, Class 1, 2.220%, 3/1/33 | 5,835,969 | ||||||
5,089,647 | Small Business Administration Participation Certificates, Ser 2013-20E, Class 1, 2.070%, 5/1/33 | 5,101,473 | ||||||
1,960,729 | Small Business Administration Participation Certificates, Ser 2013-20G, Class 1, 3.150%, 7/1/33 | 2,036,577 | ||||||
1,902,860 | Small Business Administration Participation Certificates, Ser 2014-20H, Class 1, 2.880%, 8/1/34 | 1,970,497 | ||||||
2,992,932 | Small Business Administration Participation Certificates, Ser 2014-20K, Class 1, 2.800%, 11/1/34 | 3,069,179 | ||||||
2,296,701 | Small Business Administration Participation Certificates, Ser 2015-20I, Class 1, 2.820%, 9/1/35 | 2,358,728 | ||||||
3,071,449 | Small Business Administration Participation Certificates, Ser 2016-20A, Class 1, 2.780%, 1/1/36 | 3,154,740 | ||||||
2,720,494 | Small Business Administration Participation Certificates, Ser 2017-10A, Class 1, 2.845%, 3/10/27 | 2,826,384 | ||||||
2,803,342 | Small Business Administration Participation Certificates, Ser 2017-10B, Class 1, 2.518%, 9/10/27 | 2,858,960 | ||||||
4,452,933 | Small Business Administration Participation Certificates, Ser 2017-20E, Class 1, 2.880%, 5/1/37 | 4,616,133 | ||||||
4,489,991 | Small Business Administration Participation Certificates, Ser 2017-20F, Class 1, 2.810%, 6/1/37 | 4,640,909 | ||||||
5,155,970 | Small Business Administration Participation Certificates, Ser 2017-20K, Class 1, 2.790%, 11/1/37 | 5,295,308 | ||||||
2,908,343 | Small Business Administration Participation Certificates, Ser 2017-20L, Class 1, 2.780%, 12/1/37 | 3,003,390 | ||||||
3,827,574 | Small Business Administration Participation Certificates, Ser 2018-20C, Class 1, 3.200%, 3/1/38 | 4,011,207 | ||||||
2,441,658 | Small Business Administration Participation Certificates, Ser 2018-25D, Class 1, 3.890%, 10/1/43 | 2,624,191 | ||||||
2,439,764 | Small Business Administration Participation Certificates, Ser 2019-20A, Class 1, 3.370%, 1/1/39 | 2,586,229 | ||||||
2,639,983 | Small Business Administration Participation Certificates, Ser 2019-25B, Class 1, 3.450%, 2/1/44 | 2,823,057 | ||||||
3,054,730 | Small Business Administration Participation Certificates, Ser 2019-25E, Class 1, 3.070%, 5/1/44 | 3,211,528 | ||||||
1,115,547 | Tagua Leasing LLC, 1.581%, 11/16/24 | 1,123,626 | ||||||
778,000 | Totem Ocean Trailer Express, Inc., 6.365%, 4/15/28 | 942,501 | ||||||
1,170,000 | Vessel Management Services, Inc., 5.125%, 4/16/35 | 1,456,245 | ||||||
Total U.S. Government Agency Obligations | $ | 85,346,676 | ||||||
Agency Collateralized Mortgage Obligations — 17.4% | ||||||||
2,790,244 | FHLMC Multifamily Structured Pass Through Certificates, Ser KW03 Class A1, 2.617%, 12/25/26 | 2,973,996 | ||||||
3,140,220 | FNMA REMIC, Ser 2019-M6, Class A1, 3.300%, 8/1/28 | 3,377,913 | ||||||
3,192,146 | Freddie Mac Multifamily Structured Pass Through Certificates, Ser KG01, Class A7, 2.875%, 4/25/26 | 3,525,822 | ||||||
3,530,000 | Freddie Mac Multifamily Structured Pass Through Certificates, Ser KG02, Class A2, 2.412%, 8/25/29 | 3,906,842 | ||||||
1,500,000 | FREMF Mortgage Trust, Ser 2011-K16, Class B, 144a, 4.606%, 11/25/46(A)(C) | 1,490,305 | ||||||
1,020,037 | FREMF Mortgage Trust, Ser 2012-K19, Class B, 144a, 4.024%, 5/25/45(A)(C) | 1,018,981 | ||||||
3,000,000 | FREMF Mortgage Trust, Ser 2012-K23, Class B, 144a, 3.656%, 10/25/45(A)(C) | 2,970,352 | ||||||
1,300,000 | FREMF Mortgage Trust, Ser 2013-K30, Class B, 144a, 3.556%, 6/25/45(A)(C) | 1,274,033 | ||||||
1,578,000 | FREMF Mortgage Trust, Ser 2014-K716, Class B, 144a,3.952%, 8/25/47(A)(C) | 1,575,656 | ||||||
1,537,763 | FRESB Mortgage Trust, Ser 2015-SB9, Class A5, (1M LIBOR +0.700%), 2.431%, 11/25/35(A) | 1,546,795 | ||||||
1,016,845 | FRESB Mortgage Trust, Ser 2016-SB17, Class A5H, 2.160%, 5/25/36(A)(C) | 1,016,438 | ||||||
1,701,898 | FRESB Mortgage Trust, Ser 2017-SB27, Class A10F, 3.090%, 1/25/27(A)(C) | 1,780,279 | ||||||
2,755,447 | FRESB Mortgage Trust, Ser 2018-SB46, Class A10F, 3.300%, 12/25/27(A)(C) | 2,919,193 | ||||||
2,384,152 | GNMA, Ser 2011-142, Class B, 3.480%, 2/16/44(A)(C) | 2,418,314 | ||||||
1,864,559 | GNMA, Ser 2012-1, Class C, 3.310%, 11/16/49 | 1,900,605 | ||||||
2,975,000 | GNMA, Ser 2012-46, Class C, 3.176%, 5/16/50(A)(C) | 3,087,330 | ||||||
1,183,510 | GNMA, Ser 2012-53, Class AC, 2.381%, 12/16/43 | 1,189,674 | ||||||
3,365,398 | GNMA, Ser 2013-121, Class AB, 2.134%, 8/16/44(A) | 3,407,927 | ||||||
862,644 | GNMA, Ser 2013-40, Class AC, 1.584%, 1/16/46 | 855,619 | ||||||
2,540,000 | GNMA, Ser 2015-32, Class HG, 3.000%, 9/16/49(A)(C) | 2,600,331 | ||||||
3,023,039 | GNMA, Ser 2015-37, Class AD, 2.600%, 11/16/55 | 3,075,157 | ||||||
3,512,000 | GNMA, Ser 2015-73, Class B, 2.700%, 10/16/55(A)(C) | 3,579,245 | ||||||
2,484,452 | GNMA, Ser 2017-46, Class AB, 2.600%, 1/16/52 | 2,523,995 | ||||||
1,653,210 | GNMA, Ser 2017-H11, Class FV, (1M LIBOR +0.500%), 2.162%, 5/20/67(A) | 1,624,847 | ||||||
Total Agency Collateralized Mortgage Obligations | $ | 55,639,649 | ||||||
U.S. Government Mortgage-Backed Obligations — 9.3% | ||||||||
1,358,727 | FHLMC, Pool #W30008, 7.645%, 5/1/25 | 1,566,204 |
31
Touchstone Impact Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed Obligations — 9.3% (Continued) | ||||||||
$ | 189,759 | FNMA, Pool #465711, 4.680%, 8/1/28 | $ | 223,906 | ||||
1,432,448 | FNMA, Pool #469616, 3.500%, 11/1/21 | 1,469,427 | ||||||
100,847 | FNMA, Pool #874210, 5.260%, 1/1/25 | 106,908 | ||||||
796,050 | FNMA, Pool #888829, 5.890%, 6/1/37(A) | 1,011,516 | ||||||
173,509 | FNMA, Pool #AE0446, 4.123%, 9/1/20(A) | 174,469 | ||||||
1,360,332 | FNMA, Pool #AH8854, 4.500%, 4/1/41 | 1,490,488 | ||||||
1,658,680 | FNMA, Pool #AM0157, 2.680%, 2/1/22 | 1,693,751 | ||||||
3,359,000 | FNMA, Pool #AN3613, 2.680%, 12/1/26 | 3,593,747 | ||||||
2,910,698 | FNMA, Pool #AN5183, 3.250%, 4/1/27 | 3,257,201 | ||||||
3,810,450 | FNMA, Pool #AS8650, 3.000%, 1/1/47 | 4,016,481 | ||||||
605,962 | FNMA, Pool #AT0924, 2.000%, 3/1/28 | 623,925 | ||||||
1,489,599 | FNMA, Pool #BC0153, 4.000%, 1/1/46 | 1,609,970 | ||||||
3,690,351 | FNMA, Pool #BE3695, 3.500%, 6/1/47 | 3,908,437 | ||||||
4,963,946 | FNMA, Pool #MA3937, 3.000%, 2/1/50 | 5,202,484 | ||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 29,948,914 | ||||||
Municipal Bonds — 7.6% | ||||||||
California — 1.9% | ||||||||
1,000,000 | California Health Facilities Financing Authority Revenue, Txbl Senior No Place Like Home, 2.704%, 6/1/30 | 995,620 | ||||||
581,790 | California HFA Residential Mortgage Revenue, Ser A, 2.900%, 2/1/42 | 587,032 | ||||||
1,465,000 | City of San Francisco Public Utilities Commission Water Revenue, Build America Bonds, 6.950%, 11/1/50 | 2,076,989 | ||||||
1,710,000 | East Bay Municipal Utility District Water System Revenue, Build America Bonds Sub, 5.874%, 6/1/40 | 2,406,210 | ||||||
6,065,851 | ||||||||
Florida — 0.3% | ||||||||
948,568 | Florida State HFC Revenue, Homeownership Mortgage Special Project, 2.800%, 7/1/41 | 955,218 | ||||||
Indiana — 0.5% | ||||||||
1,200,000 | Indianapolis Local Public Improvement Bond Bank, Build America Bonds, Ser B, 6.116%, 1/15/40 | 1,666,176 | ||||||
Louisiana — 0.4% | ||||||||
1,378,661 | Louisiana State Housing Corp., Revenue, 2.875%, 11/1/38 | 1,390,394 | ||||||
Missouri — 0.2% | ||||||||
565,000 | Missouri State Housing Development Commission, Special Homeownership Loan Program, Ser C, 2.650%, 11/1/40 | 568,678 | ||||||
New York — 1.0% | ||||||||
1,400,000 | Port Authority of New York and New Jersey, Cons One Hundred Sixty-Eight, 4.926%, 10/1/51 | 1,737,022 | ||||||
1,135,000 | Port Authority of New York and New Jersey, Txbl Cons Ser 181, 4.960%, 8/1/46 | 1,408,626 | ||||||
3,145,648 | ||||||||
Ohio — 0.4% | ||||||||
1,410,000 | Ohio State HFA, Revenue, Ser 1, 2.650%, 11/1/41 | 1,419,179 | ||||||
Texas — 2.0% | ||||||||
1,770,000 | Dallas Area Rapid Transit, Revenue, Build America Bonds, Ser B, 5.999%, 12/1/44 | 2,557,225 | ||||||
540,000 | Texas State Department of Housing & Community Affairs, Revenue, Ser A, 2.800%, 3/1/36 | 543,785 | ||||||
2,640,000 | Texas State Transportation Commission Highway Authority, Build America Bonds, Ser B, 5.178%, 4/1/30 | 3,177,953 | ||||||
6,278,963 | ||||||||
Virginia — 0.2% | ||||||||
788,824 | Virginia State Housing Development Authority, Pass Thru Ser B, 2.750%, 4/25/42 | 795,048 | ||||||
Washington — 0.7% | ||||||||
1,515,000 | State of Washington, Build America Bonds, Ser D, UTGO, 5.481%, 8/1/39 | 2,107,607 | ||||||
Total Municipal Bonds | $ | 24,392,762 | ||||||
U.S. Treasury Obligations — 4.6% | ||||||||
10,429,000 | U.S. Treasury Strip, Principal, 0.000%, 5/15/43(D) | 7,629,455 | ||||||
5,379,000 | U.S. Treasury Strip, Principal, 0.000%, 5/15/45(D) | 3,800,188 | ||||||
4,862,000 | U.S. Treasury Strip, Principal, 0.000%, 5/15/48(D) | 3,259,661 | ||||||
Total U.S. Treasury Obligations | $ | 14,689,304 | ||||||
Asset-Backed Securities — 1.4% | ||||||||
1,151,109 | 321 Henderson Receivables I LLC, Ser 2012-1A, Class A, 144a, 4.210%, 2/16/65 | 1,189,225 | ||||||
1,058,707 | 321 Henderson Receivables I LLC, Ser 2012-2A, Class A, 144a, 3.840%, 10/15/59 | 1,065,682 | ||||||
1,360,530 | 321 Henderson Receivables I LLC, Ser 2015-2A, Class A, 144a, 3.870%, 3/15/58 | 1,368,330 | ||||||
826,391 | JCP&L Transition Funding II LLC, Ser 2006-A, Class A4, 5.610%, 6/5/23 | 838,326 | ||||||
Total Asset-Backed Securities | $ | 4,461,563 | ||||||
Non-Agency Collateralized Mortgage Obligation — 0.8% | ||||||||
2,415,682 | Virginia Housing Development Authority, Ser 2019-A, Class A, 2.950%, 10/25/49 | $ | 2,439,863 | |||||
Commercial Mortgage-Backed Security — 0.1% | ||||||||
337,584 | CD Commercial Mortgage Trust, Ser 2006-CD3, Class AJ, 5.688%, 10/15/48 | $ | 190,461 | |||||
Shares | ||||||||
Short-Term Investment Funds — 3.0% | ||||||||
8,414,054 | Dreyfus Government Cash Management, Institutional Shares, 0.29%∞Ω | 8,414,054 | ||||||
1,101,375 | Invesco Government & Agency Portfolio, Institutional Class, 0.43%**∞Ω | 1,101,375 | ||||||
Total Short-Term Investment Funds | $ | 9,515,429 | ||||||
Total Investment Securities — 100.2% | ||||||||
(Cost $310,098,530) | $ | 320,913,183 | ||||||
Liabilities in Excess of Other | ||||||||
Assets — (0.2%) | (724,056 | ) | ||||||
Net Assets — 100.0% | $ | 320,189,127 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2020. |
(B) | Perpetual Bond - A bond or preferred stock with no definite maturity date. |
(C) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(D) | Strip Security - Separate trading of Registered Interest and Principal. Holders of a principal strip security are entitled to the portion of the payment representing principal only. |
** | Represents collateral for securities loaned. |
32
Touchstone Impact Bond Fund(Unaudited) (Continued)
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2020 was $1,106,057. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FREMF - Freddie Mac Multifamily Securitization
FRESB - Freddie Mac Multifamily Securitization Small Balance Loan
GNMA - Government National Mortgage Association
HFA - Housing Finance Authority/Agency
HFC - Housing Finance Corporation
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LP - Limited Partnership
MTN - Medium Term Note
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit UTGO - Unlimited Tax General Obligation
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2020, these securities were valued at $20,201,330 or 6.3% 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 | ||||||||||||
Corporate Bonds | $ | — | $ | 94,288,562 | $ | — | $ | 94,288,562 | ||||||||
U.S. Government Agency Obligations | — | 85,346,676 | — | 85,346,676 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 55,639,649 | — | 55,639,649 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 29,948,914 | — | 29,948,914 | ||||||||||||
Municipal Bonds | — | 24,392,762 | — | 24,392,762 | ||||||||||||
U.S. Treasury Obligations | — | 14,689,304 | — | 14,689,304 | ||||||||||||
Asset-Backed Securities | — | 4,461,563 | — | 4,461,563 | ||||||||||||
Non-Agency Collateralized Mortgage Obligation | — | 2,439,863 | — | 2,439,863 | ||||||||||||
Commercial Mortgage-Backed Security | — | 190,461 | — | 190,461 | ||||||||||||
Short-Term Investment Funds | 9,515,429 | — | — | 9,515,429 | ||||||||||||
Total | $ | 9,515,429 | $ | 311,397,754 | $ | — | $ | 320,913,183 |
See accompanying Notes to Financial Statements.
33
Touchstone International ESG Equity Fund – March 31, 2020 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.4% | ||||||||
Japan — 21.4% | ||||||||
Communication Services — 4.6% | ||||||||
KDDI Corp. | 30,300 | $ | 895,019 | |||||
Nintendo Co. Ltd. | 600 | 233,192 | ||||||
Consumer Discretionary — 3.5% | ||||||||
Sony Corp. | 14,200 | 841,117 | ||||||
Health Care — 1.2% | ||||||||
Eisai Co. Ltd. | 4,000 | 292,590 | ||||||
Industrials — 4.4% | ||||||||
Amada Holdings Co. Ltd. | 30,300 | 237,489 | ||||||
Kinden Corp. | 18,200 | 267,803 | ||||||
Kubota Corp. | 23,400 | 300,647 | ||||||
Mitsubishi Electric Corp. | 21,600 | 263,870 | ||||||
Information Technology — 3.5% | ||||||||
Kyocera Corp. | 12,100 | 714,031 | ||||||
Tokyo Electron Ltd. | 700 | 130,461 | ||||||
Materials — 1.3% | ||||||||
Toray Industries, Inc. | 72,700 | 314,684 | ||||||
Utilities — 2.9% | ||||||||
Tokyo Gas Co. Ltd. | 30,000 | 706,898 | ||||||
Total Japan | 5,197,801 | |||||||
Germany — 12.7% | ||||||||
Consumer Discretionary — 1.5% | ||||||||
Continental AG | 5,126 | 365,475 | ||||||
Industrials — 4.0% | ||||||||
Deutsche Post AG | 25,349 | 679,572 | ||||||
KION Group AG | 6,758 | 290,850 | ||||||
Materials — 2.1% | ||||||||
HeidelbergCement AG | 12,086 | 516,351 | ||||||
Real Estate — 5.1% | ||||||||
Vonovia SE | 25,024 | 1,238,090 | ||||||
Total Germany | 3,090,338 | |||||||
United Kingdom — 10.3% | ||||||||
Consumer Staples — 2.0% | ||||||||
Reckitt Benckiser Group PLC | 6,328 | 482,039 | ||||||
Financials — 2.5% | ||||||||
Lloyds Banking Group PLC | 1,578,832 | 617,248 | ||||||
Health Care — 4.6% | ||||||||
GlaxoSmithKline PLC ADR | 29,237 | 1,107,790 | ||||||
Utilities — 1.2% | ||||||||
Pennon Group PLC | 21,819 | 294,185 | ||||||
Total United Kingdom | 2,501,262 | |||||||
Switzerland — 9.9% | ||||||||
Health Care — 7.7% | ||||||||
Alcon, Inc.* | 14,606 | 748,276 | ||||||
Novartis AG | 13,436 | 1,114,665 | ||||||
Industrials — 2.2% | ||||||||
ABB Ltd. ADR | 31,415 | 542,223 | ||||||
Total Switzerland | 2,405,164 | |||||||
France — 9.3% | ||||||||
Communication Services — 1.1% | ||||||||
Ubisoft Entertainment SA* | 3,592 | 262,543 | ||||||
Energy — 2.7% | ||||||||
TOTAL SA ADR | 17,343 | 645,853 | ||||||
Industrials — 5.5% | ||||||||
Cie de Saint-Gobain | 21,972 | 527,228 | ||||||
Schneider Electric SE | 9,624 | 813,449 | ||||||
Total France | 2,249,073 | |||||||
Canada — 6.6% | ||||||||
Financials — 4.1% | ||||||||
Intact Financial Corp. | 11,509 | 994,699 | ||||||
Materials — 2.5% | ||||||||
Agnico Eagle Mines Ltd. | 15,533 | 618,058 | ||||||
Total Canada | 1,612,757 | |||||||
China — 5.7% | ||||||||
Communication Services — 4.0% | ||||||||
Tencent Holdings Ltd. | 19,500 | 963,838 | ||||||
Consumer Discretionary — 1.7% | ||||||||
Shenzhou International Group Holdings Ltd. | 40,400 | 423,799 | ||||||
Total China | 1,387,637 | |||||||
Taiwan — 4.2% | ||||||||
Information Technology — 4.2% | ||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 21,307 | 1,018,261 | ||||||
Sweden — 4.1% | ||||||||
Financials — 2.0% | ||||||||
Swedbank AB - Class A | 44,751 | 493,569 | ||||||
Industrials — 2.1% | ||||||||
Epiroc AB - Class A | 51,225 | 506,179 | ||||||
Total Sweden | 999,748 | |||||||
Italy — 3.7% | ||||||||
Utilities — 3.7% | ||||||||
Enel SpA | 131,069 | 904,094 | ||||||
South Korea — 2.4% | ||||||||
Communication Services — 1.2% | ||||||||
KT Corp. ADR* | 36,501 | 283,978 | ||||||
Information Technology — 1.2% | ||||||||
Samsung SDI Co. Ltd. | 1,513 | 294,567 | ||||||
Total South Korea | 578,545 | |||||||
Hong Kong — 1.9% | ||||||||
Financials — 1.9% | ||||||||
AIA Group Ltd. | 52,600 | 471,014 | ||||||
Denmark — 1.9% | ||||||||
Materials — 1.9% | ||||||||
Novozymes A/S - Class B | 10,331 | 463,416 | ||||||
India — 1.2% | ||||||||
Financials — 1.2% | ||||||||
ICICI Bank Ltd. ADR | 33,170 | 281,945 | ||||||
Indonesia — 1.1% | ||||||||
Financials — 1.1% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 1,384,100 | 253,851 | ||||||
Total Common Stocks | $ | 23,414,906 | ||||||
Exchange-Traded Funds — 1.0% | ||||||||
United States — 1.0% | ||||||||
iShares Core MSCI EAFE ETF | 3,635 | 181,350 | ||||||
iShares Core MSCI Emerging Markets ETF | 1,454 | 58,843 | ||||||
Total Exchange-Traded Funds | $ | 240,193 |
34
Touchstone International ESG Equity Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Short-Term Investment Fund — 2.2% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 0.29%∞Ω | 533,775 | $ | 533,775 | |||||
Total Investment Securities —99.6% | ||||||||
(Cost $26,328,270) | $ | 24,188,874 | ||||||
Other Assets in Excess of Liabilities — 0.4% | 97,521 | |||||||
Net Assets — 100.0% | $ | 24,286,395 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
ETF - Exchange-Traded Fund
PLC - Public Limited Company
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
Japan | $ | 300,647 | $ | 4,897,154 | $ | — | $ | 5,197,801 | ||||||||
Germany | 1,238,090 | 1,852,248 | — | 3,090,338 | ||||||||||||
United Kingdom | 1,401,975 | 1,099,287 | — | 2,501,262 | ||||||||||||
Switzerland | 1,656,888 | 748,276 | — | 2,405,164 | ||||||||||||
France | 645,853 | 1,603,220 | — | 2,249,073 | ||||||||||||
Canada | 1,612,757 | — | — | 1,612,757 | ||||||||||||
China | — | 1,387,637 | — | 1,387,637 | ||||||||||||
Taiwan | 1,018,261 | — | — | 1,018,261 | ||||||||||||
Sweden | — | 999,748 | — | 999,748 | ||||||||||||
Italy | — | 904,094 | — | 904,094 | ||||||||||||
South Korea | 283,978 | 294,567 | — | 578,545 | ||||||||||||
Hong Kong | — | 471,014 | — | 471,014 | ||||||||||||
Denmark | — | 463,416 | — | 463,416 | ||||||||||||
India | 281,945 | — | — | 281,945 | ||||||||||||
Indonesia | — | 253,851 | — | 253,851 | ||||||||||||
Exchange-Traded Funds | 240,193 | — | — | 240,193 | ||||||||||||
Short-Term Investment Fund | 533,775 | — | — | 533,775 | ||||||||||||
Total | $ | 9,214,362 | $ | 14,974,512 | $ | — | $ | 24,188,874 |
See accompanying Notes to Financial Statements.
35
Touchstone Mid Cap Fund – March 31, 2020 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 95.6% | ||||||||
Information Technology — 24.4% | ||||||||
Amphenol Corp. - Class A | 1,080,088 | $ | 78,716,813 | |||||
Black Knight, Inc.* | 1,377,760 | 79,992,746 | ||||||
CDK Global, Inc. | 1,047,359 | 34,405,743 | ||||||
Citrix Systems, Inc. | 1,091,682 | 154,527,587 | ||||||
Entegris, Inc. | 2,538,119 | 113,631,588 | ||||||
Skyworks Solutions, Inc. | 1,004,342 | 89,768,088 | ||||||
551,042,565 | ||||||||
Industrials — 23.2% | ||||||||
Allison Transmission Holdings, Inc. | 1,858,352 | 60,600,859 | ||||||
Armstrong World Industries, Inc. | 1,309,373 | 103,990,404 | ||||||
Cintas Corp. | 439,837 | 76,188,565 | ||||||
Copart, Inc.* | 1,279,539 | 87,674,012 | ||||||
HD Supply Holdings, Inc.* | 2,120,028 | 60,272,396 | ||||||
Old Dominion Freight Line, Inc. | 749,270 | 98,349,180 | ||||||
Sensata Technologies Holding PLC* | 1,300,705 | 37,629,396 | ||||||
524,704,812 | ||||||||
Financials — 11.5% | ||||||||
Alleghany Corp. | 153,181 | 84,609,525 | ||||||
M&T Bank Corp. | 709,670 | 73,401,168 | ||||||
Moelis & Co. - Class A | 2,378,077 | 66,823,964 | ||||||
T Rowe Price Group, Inc. | 355,071 | 34,672,683 | ||||||
259,507,340 | ||||||||
Materials — 10.8% | ||||||||
AXAlta Coating Systems Ltd.* | 2,186,776 | 37,765,622 | ||||||
Ball Corp. | 663,257 | 42,886,198 | ||||||
NewMarket Corp. | 196,927 | 75,397,440 | ||||||
Vulcan Materials Co. | 822,278 | 88,863,583 | ||||||
244,912,843 | ||||||||
Consumer Staples — 9.3% | ||||||||
Brown-Forman Corp. - Class B | 1,395,534 | 77,466,092 | ||||||
Lamb Weston Holdings, Inc. | 877,481 | 50,104,165 | ||||||
Post Holdings, Inc.* | 1,007,154 | 83,563,567 | ||||||
211,133,824 | ||||||||
Consumer Discretionary — 8.3% | ||||||||
CarMax, Inc.* | 1,156,755 | 62,268,122 | ||||||
Dollar Tree, Inc.* | 972,645 | 71,460,228 | ||||||
Hasbro, Inc. | 743,842 | 53,221,895 | ||||||
186,950,245 | ||||||||
Health Care — 3.7% | ||||||||
Perrigo Co. PLC | 1,739,779 | 83,665,972 | ||||||
Communication Services — 2.3% | ||||||||
Fox Corp. - Class A | 2,197,473 | 51,926,287 | ||||||
Real Estate — 2.1% | ||||||||
STORE Capital Corp. REIT | 2,673,438 | 48,442,697 | ||||||
Total Common Stocks | $ | 2,162,286,585 | ||||||
Short-Term Investment Fund — 7.4% | ||||||||
Dreyfus Government Cash Management, InstitutionalShares, 0.29%∞Ω | 166,932,007 | $ | 166,932,007 | |||||
Total Investment Securities —103.0% | ||||||||
(Cost $2,556,934,140) | $ | 2,329,218,592 | ||||||
Liabilities in Excess of Other Assets — (3.0%) | (67,504,602 | ) | ||||||
Net Assets — 100.0% | $ | 2,261,713,990 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
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 | $ | 2,162,286,585 | $ | — | $ | — | $ | 2,162,286,585 | ||||||||
Short-Term Investment Fund | 166,932,007 | — | — | 166,932,007 | ||||||||||||
Total | $ | 2,329,218,592 | $ | — | $ | — | $ | 2,329,218,592 |
See accompanying Notes to Financial Statements.
36
Touchstone Mid Cap Value Fund– March 31, 2020 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.4% | ||||||||
Utilities — 13.2% | ||||||||
CenterPoint Energy, Inc. | 354,295 | $ | 5,473,858 | |||||
DTE Energy Co. | 121,280 | 11,517,962 | ||||||
Entergy Corp. | 162,396 | 15,260,352 | ||||||
Evergy, Inc. | 259,405 | 14,280,245 | ||||||
NiSource, Inc. | 623,245 | 15,562,428 | ||||||
Pinnacle West Capital Corp. | 105,559 | 8,000,317 | ||||||
Spire, Inc. | 127,931 | 9,528,301 | ||||||
79,623,463 | ||||||||
Health Care — 12.9% | ||||||||
AmerisourceBergen Corp. | 63,447 | 5,615,059 | ||||||
Centene Corp.* | 262,774 | 15,611,403 | ||||||
Charles River Laboratories International, Inc.* | 54,464 | 6,873,901 | ||||||
DENTSPLY SIRONA, Inc. | 239,753 | 9,309,609 | ||||||
Encompass Health Corp. | 209,994 | 13,445,916 | ||||||
Envista Holdings Corp.* | 633,786 | 9,468,763 | ||||||
Quest Diagnostics, Inc. | 120,719 | 9,693,736 | ||||||
Zimmer Biomet Holdings, Inc. | 76,954 | 7,778,510 | ||||||
77,796,897 | ||||||||
Financials — 12.8% | ||||||||
AGNC Investment Corp., REIT | 674,340 | 7,134,517 | ||||||
Allstate Corp. (The) | 132,510 | 12,155,142 | ||||||
Ameriprise Financial, Inc. | 97,698 | 10,012,091 | ||||||
Hartford Financial Services Group, Inc. (The) | 222,347 | 7,835,508 | ||||||
M&T Bank Corp. | 46,042 | 4,762,124 | ||||||
PacWest Bancorp | 235,823 | 4,225,948 | ||||||
Pinnacle Financial Partners, Inc. | 196,519 | 7,377,323 | ||||||
Reinsurance Group of America, Inc. | 99,382 | 8,362,002 | ||||||
Signature Bank | 116,227 | 9,343,489 | ||||||
Sterling Bancorp. | 611,454 | 6,389,694 | ||||||
77,597,838 | ||||||||
Consumer Staples — 12.0% | ||||||||
Constellation Brands, Inc. - Class A | 56,710 | 8,129,946 | ||||||
Darling Ingredients, Inc.* | 816,957 | 15,661,066 | ||||||
Hain Celestial Group, Inc. (The)* | 361,033 | 9,376,027 | ||||||
Ingredion, Inc. | 77,485 | 5,850,117 | ||||||
Kroger Co. (The) | 239,191 | 7,204,433 | ||||||
TreeHouse Foods, Inc.* | 372,824 | 16,460,180 | ||||||
Tyson Foods, Inc. - Class A | 176,867 | 10,235,293 | ||||||
72,917,062 | ||||||||
Industrials — 10.4% | ||||||||
Aercap Holdings N.V. (Ireland)* | 224,031 | 5,105,666 | ||||||
Clean Harbors, Inc.* | 191,109 | 9,811,536 | ||||||
Dover Corp. | 78,608 | 6,598,356 | ||||||
Hexcel Corp. | 156,654 | 5,825,962 | ||||||
Huntington Ingalls Industries, Inc. | 32,050 | 5,839,830 | ||||||
Parker-Hannifin Corp. | 41,550 | 5,390,281 | ||||||
Regal-Beloit Corp. | 154,969 | 9,755,299 | ||||||
Snap-on, Inc. | 66,255 | 7,209,869 | ||||||
Stericycle, Inc.* | 157,776 | 7,664,758 | ||||||
63,201,557 | ||||||||
Consumer Discretionary — 9.4% | ||||||||
BorgWarner, Inc. | 211,117 | 5,144,921 | ||||||
Carter's, Inc. | 100,505 | 6,606,194 | ||||||
Dollar General Corp. | 57,833 | 8,733,361 | ||||||
Dollar Tree, Inc.* | 111,173 | 8,167,880 | ||||||
Hasbro, Inc. | 109,779 | 7,854,688 | ||||||
LKQ Corp.* | 649,635 | 13,324,014 | ||||||
Newell Brands, Inc. | 521,617 | 6,927,074 | ||||||
56,758,132 | ||||||||
Real Estate — 9.0% | ||||||||
Alexandria Real Estate Equities, Inc., REIT | 104,436 | 14,313,998 | ||||||
American Campus Communities, Inc., REIT | 275,126 | 7,634,746 | ||||||
Digital Realty Trust, Inc., REIT | 65,693 | 9,125,415 | ||||||
Equinix, Inc., REIT | 13,476 | 8,416,705 | ||||||
Host Hotels & Resorts, Inc., REIT | 486,244 | 5,368,134 | ||||||
Mid-America Apartment Communities, Inc., REIT | 94,329 | 9,718,717 | ||||||
54,577,715 | ||||||||
Information Technology — 8.9% | ||||||||
Leidos Holdings, Inc. | 133,071 | 12,195,957 | ||||||
MACOM Technology Solutions Holdings, Inc.* | 628,299 | 11,893,700 | ||||||
PTC, Inc.* | 176,305 | 10,791,629 | ||||||
Qorvo, Inc.* | 108,928 | 8,782,865 | ||||||
Synopsys, Inc.* | 81,415 | 10,485,438 | ||||||
54,149,589 | ||||||||
Materials — 8.1% | ||||||||
Berry Global Group, Inc.* | 248,737 | 8,384,924 | ||||||
FMC Corp. | 175,744 | 14,356,527 | ||||||
Livent Corp.* | 754,632 | 3,961,818 | ||||||
Olin Corp. | 340,820 | 3,977,370 | ||||||
RPM International, Inc. | 110,612 | 6,581,414 | ||||||
Scotts Miracle-Gro Co. (The) | 52,779 | 5,404,570 | ||||||
Valvoline, Inc. | 464,907 | 6,085,633 | ||||||
48,752,256 | ||||||||
Energy — 1.7% | ||||||||
Cimarex Energy Co. | 143,739 | 2,419,127 | ||||||
Diamondback Energy, Inc. | 143,178 | 3,751,264 | ||||||
Pioneer Natural Resources Co. | 62,325 | 4,372,099 | ||||||
10,542,490 | ||||||||
Total Common Stocks | $ | 595,916,999 | ||||||
Short-Term Investment Fund — 2.4% | ||||||||
Dreyfus Government Cash Management, InstitutionalShares, 0.29%∞Ω | 14,505,946 | $ | 14,505,946 | |||||
Total Investment Securities —100.8% | ||||||||
(Cost $663,194,142) | $ | 610,422,945 | ||||||
Liabilities in Excess of Other Assets — (0.8%) | (4,764,491 | ) | ||||||
Net Assets — 100.0% | $ | 605,658,454 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviation:
REIT - Real Estate Investment Trust
37
Touchstone Mid Cap Value Fund(Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 595,916,999 | $ | — | $ | — | $ | 595,916,999 | ||||||||
Short-Term Investment Fund | 14,505,946 | — | — | 14,505,946 | ||||||||||||
Total | $ | 610,422,945 | $ | — | $ | — | $ | 610,422,945 |
See accompanying Notes to Financial Statements.
38
Touchstone Sands Capital Select Growth Fund – March 31, 2020 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.5% | ||||||||
Information Technology — 34.6% | ||||||||
Adobe, Inc.* | 227,512 | $ | 72,403,419 | |||||
Atlassian Corp. PLC (Australia) - Class A* | 208,891 | 28,672,379 | ||||||
Intuit, Inc. | 257,141 | 59,142,430 | ||||||
Microsoft Corp. | 387,007 | 61,034,874 | ||||||
salesforce.com, Inc.* | 174,407 | 25,111,120 | ||||||
ServiceNow, Inc.* | 319,473 | 91,554,572 | ||||||
Square, Inc. - Class A* | 497,902 | 26,080,107 | ||||||
Twilio, Inc. - Class A* | 284,761 | 25,483,262 | ||||||
Visa, Inc. - Class A | 706,192 | 113,781,655 | ||||||
503,263,818 | ||||||||
Communication Services — 27.2% | ||||||||
Activision Blizzard, Inc. | 421,673 | 25,081,110 | ||||||
Alphabet, Inc. - Class A* | 55,104 | 64,028,093 | ||||||
Facebook, Inc. - Class A* | 324,294 | 54,092,239 | ||||||
Match Group, Inc.*† | 1,101,572 | 72,747,815 | ||||||
Netflix, Inc.* | 353,792 | 132,848,896 | ||||||
Sea Ltd. (Singapore) ADR* | 761,432 | 33,739,052 | ||||||
Zillow Group, Inc. - Class C* | 382,744 | 13,786,439 | ||||||
396,323,644 | ||||||||
Health Care — 13.9% | ||||||||
Align Technology, Inc.* | 139,313 | 24,233,496 | ||||||
DexCom, Inc.* | 48,543 | 13,071,173 | ||||||
Edwards Lifesciences Corp.* | 171,013 | 32,256,472 | ||||||
Illumina, Inc.* | 151,184 | 41,291,374 | ||||||
Mirati Therapeutics, Inc.* | 204,356 | 15,708,846 | ||||||
Sarepta Therapeutics, Inc.* | 195,633 | 19,136,820 | ||||||
Zoetis, Inc. | 481,715 | 56,693,038 | ||||||
202,391,219 | ||||||||
Consumer Discretionary — 12.9% | ||||||||
Alibaba Group Holding Ltd. (China) ADR* | 180,831 | 35,168,013 | ||||||
Amazon.com, Inc.* | 66,521 | 129,697,324 | ||||||
Floor & Decor Holdings, Inc. - Class A* | 701,065 | 22,497,176 | ||||||
187,362,513 | ||||||||
Industrials — 5.6% | ||||||||
CoStar Group, Inc.* | 98,510 | 57,846,057 | ||||||
Uber Technologies, Inc.* | 872,852 | 24,370,028 | ||||||
82,216,085 | ||||||||
Consumer Staples — 2.3% | ||||||||
Monster Beverage Corp.* | 584,538 | 32,886,108 | ||||||
Total Common Stocks | $ | 1,404,443,387 | ||||||
Short-Term Investment Funds — 7.3% | ||||||||
Dreyfus Government Cash Management, Institutional Shares, 0.29%∞Ω | 36,747,500 | $ | 36,747,500 | |||||
Invesco Government & Agency Portfolio, Institutional Class, 0.43%**∞Ω | 70,027,174 | 70,027,174 | ||||||
Total Short-Term Investment Funds | $ | 106,774,674 | ||||||
Total Investment Securities —103.8% | ||||||||
(Cost $954,305,544) | $ | 1,511,218,061 | ||||||
Liabilities in Excess of Other Assets — (3.8%) | (54,835,370 | ) | ||||||
Net Assets — 100.0% | $ | 1,456,382,691 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2020 was $67,967,840. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
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 | $ | 1,404,443,387 | $ | — | $ | — | $ | 1,404,443,387 | ||||||||
Short-Term Investment Funds | 106,774,674 | — | — | 106,774,674 | ||||||||||||
Total | $ | 1,511,218,061 | $ | — | $ | — | $ | 1,511,218,061 |
See accompanying Notes to Financial Statements.
39
Touchstone Small Cap Fund – March 31, 2020 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 95.9% | ||||||||
Industrials — 26.2% | ||||||||
Armstrong World Industries, Inc. | 34,338 | $ | 2,727,124 | |||||
GATX Corp. | 38,122 | 2,384,912 | ||||||
Kaman Corp. | 48,844 | 1,879,029 | ||||||
Landstar System, Inc. | 38,879 | 3,726,941 | ||||||
Masonite International Corp.* | 33,749 | 1,601,390 | ||||||
Matson, Inc. | 46,449 | 1,422,268 | ||||||
UniFirst Corp. | 12,176 | 1,839,672 | ||||||
15,581,336 | ||||||||
Financials — 16.3% | ||||||||
Atlantic Union Bankshares Corp. | 70,059 | 1,534,292 | ||||||
Eaton Vance Corp. | 44,619 | 1,438,963 | ||||||
MBIA, Inc.* | 139,881 | 998,750 | ||||||
Moelis & Co. - Class A | 82,276 | 2,311,956 | ||||||
White Mountains Insurance Group Ltd. | 3,757 | 3,418,870 | ||||||
9,702,831 | ||||||||
Materials — 13.6% | ||||||||
GCP Applied Technologies, Inc.* | 98,171 | 1,747,444 | ||||||
Ingevity Corp.* | 53,486 | 1,882,707 | ||||||
NewMarket Corp. | 10,000 | 3,828,700 | ||||||
Tredegar Corp. | 41,554 | 649,489 | ||||||
8,108,340 | ||||||||
Consumer Discretionary — 13.6% | ||||||||
Churchill Downs, Inc. | 28,479 | 2,931,913 | ||||||
Graham Holdings Co. - Class B | 3,687 | 1,257,894 | ||||||
Penske Automotive Group, Inc. | 61,643 | 1,726,004 | ||||||
Tempur Sealy International, Inc.* | 49,985 | 2,184,844 | ||||||
8,100,655 | ||||||||
Real Estate — 10.2% | �� | |||||||
Alexander & Baldwin, Inc. REIT | 121,133 | 1,359,112 | ||||||
First Industrial Realty Trust, Inc. REIT | 94,645 | 3,145,054 | ||||||
STORE Capital Corp. REIT | 61,751 | 1,118,928 | ||||||
Tejon Ranch Co.* | 32,089 | 451,171 | ||||||
6,074,265 | ||||||||
Health Care — 4.8% | ||||||||
Bruker Corp. | 37,863 | 1,357,767 | ||||||
LivaNova PLC* | 32,990 | 1,492,798 | ||||||
2,850,565 | ||||||||
Information Technology — 4.7% | ||||||||
Entegris, Inc. | 62,447 | 2,795,752 | ||||||
Consumer Staples — 4.3% | ||||||||
Energizer Holdings, Inc. | 33,843 | 1,023,751 | ||||||
PriceSmart, Inc. | 28,986 | 1,523,214 | ||||||
�� | 2,546,965 | |||||||
Energy — 2.2% | ||||||||
Dril-Quip, Inc.* | 42,861 | $ | 1,307,261 | |||||
Total Common Stocks | 57,067,970 | |||||||
Short-Term Investment Fund — 4.1% | ||||||||
Dreyfus Government Cash Management, InstitutionalShares, 0.29%∞Ω | 2,428,151 | $ | 2,428,151 | |||||
Total Investment Securities —100.0% | ||||||||
(Cost $57,951,867) | $ | 59,496,121 | ||||||
Liabilities in Excess of Other Assets — (0.0%) | (16,303 | ) | ||||||
Net Assets — 100.0% | $ | 59,479,818 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviation:
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 | $ | 57,067,970 | $ | — | $ | — | $ | 57,067,970 | ||||||||
Short-Term Investment Fund | 2,428,151 | — | — | 2,428,151 | ||||||||||||
Total | $ | 59,496,121 | $ | — | $ | — | $ | 59,496,121 |
See accompanying Notes to Financial Statements.
40
Touchstone Small Cap Value Fund –March 31, 2020 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.3% | ||||||||
Industrials — 17.8% | ||||||||
Altra Industrial Motion Corp. | 25,064 | $ | 438,369 | |||||
BWX Technologies, Inc. | 23,315 | 1,135,674 | ||||||
CIRCOR International, Inc.* | 17,656 | 205,339 | ||||||
Clean Harbors, Inc.* | 18,015 | 924,890 | ||||||
EMCOR Group, Inc. | 7,505 | 460,207 | ||||||
Enerpac Tool Group Corp. | 27,359 | 452,791 | ||||||
EnPro Industries, Inc. | 13,964 | 552,695 | ||||||
Generac Holdings, Inc.* | 5,567 | 518,677 | ||||||
Harsco Corp.* | 49,075 | 342,053 | ||||||
Hexcel Corp. | 15,504 | 576,594 | ||||||
Hillenbrand, Inc. | 13,599 | 259,877 | ||||||
Huron Consulting Group, Inc.* | 22,392 | 1,015,701 | ||||||
ITT, Inc. | 23,222 | 1,053,350 | ||||||
Kelly Services, Inc. - Class A | 25,161 | 319,293 | ||||||
Korn/Ferry International | 24,696 | 600,606 | ||||||
Masonite International Corp.* | 9,812 | 465,579 | ||||||
Regal Beloit Corp. | 13,172 | 829,177 | ||||||
SPX FLOW, Inc.* | 10,477 | 297,756 | ||||||
Standex International Corp. | 13,795 | 676,231 | ||||||
Team, Inc.* | 74,464 | 484,016 | ||||||
11,608,875 | ||||||||
Financials — 15.7% | ||||||||
Banc of California, Inc. | 22,170 | 177,360 | ||||||
Bank of NT Butterfield & Son Ltd. (The) (Bermuda) | 42,589 | 725,291 | ||||||
BankUnited, Inc. | 47,050 | 879,835 | ||||||
First Horizon National Corp. | 72,857 | 587,227 | ||||||
FNB Corp. | 162,981 | 1,201,170 | ||||||
Hanover Insurance Group, Inc. (The) | 4,191 | 379,621 | ||||||
IBERIABANK Corp. | 23,369 | 845,023 | ||||||
Kemper Corp. | 12,924 | 961,158 | ||||||
MGIC Investment Corp. | 90,648 | 575,615 | ||||||
Pinnacle Financial Partners, Inc. | 8,395 | 315,148 | ||||||
ProAssurance Corp. | 35,628 | 890,700 | ||||||
Sterling Bancorp. | 107,224 | 1,120,491 | ||||||
Umpqua Holdings Corp. | 49,678 | 541,490 | ||||||
Univest Financial Corp. | 42,318 | 690,630 | ||||||
Western Alliance Bancorp | 10,552 | 322,997 | ||||||
10,213,756 | ||||||||
Consumer Staples — 13.9% | ||||||||
BJ's Wholesale Club Holdings, Inc.* | 43,961 | 1,119,687 | ||||||
Cal-Maine Foods, Inc. | 22,422 | 986,120 | ||||||
Darling Ingredients, Inc.* | 89,927 | 1,723,901 | ||||||
Hain Celestial Group, Inc. (The)* | 41,951 | 1,089,467 | ||||||
Hostess Brands, Inc.* | 86,572 | 922,858 | ||||||
Sanderson Farms, Inc. | 7,671 | 945,988 | ||||||
Spectrum Brands Holdings, Inc. | 12,145 | 441,714 | ||||||
TreeHouse Foods, Inc.* | 41,046 | 1,812,181 | ||||||
9,041,916 | ||||||||
Information Technology — 13.6% | ||||||||
Belden, Inc. | 11,536 | 416,219 | ||||||
CACI International, Inc. - Class A* | 7,703 | 1,626,488 | ||||||
ExlService Holdings, Inc.* | 22,891 | 1,191,019 | ||||||
MACOM Technology Solutions Holdings, Inc.* | 74,202 | 1,404,644 | ||||||
ManTech International Corp. - Class A | 20,572 | 1,494,967 | ||||||
Semtech Corp.* | 9,852 | 369,450 | ||||||
Viavi Solutions, Inc.* | 108,047 | 1,211,207 | ||||||
Virtusa Corp.* | 40,093 | 1,138,641 | ||||||
8,852,635 | ||||||||
Utilities — 7.8% | ||||||||
Black Hills Corp. | 11,298 | 723,411 | ||||||
Hawaiian Electric Industries, Inc. | 13,018 | 560,425 | ||||||
IDACORP, Inc. | 11,776 | 1,033,815 | ||||||
Portland General Electric Co. | 36,198 | 1,735,332 | ||||||
Spire, Inc. | 13,982 | 1,041,379 | ||||||
5,094,362 | ||||||||
Materials — 7.8% | ||||||||
Cabot Corp. | 8,978 | 234,505 | ||||||
HB Fuller Co. | 17,106 | 477,771 | ||||||
Ingevity Corp.* | 8,991 | 316,483 | ||||||
Livent Corp.* | 83,573 | 438,758 | ||||||
O-I Glass, Inc. | 51,315 | 364,850 | ||||||
Olin Corp. | 42,804 | 499,523 | ||||||
Sensient Technologies Corp. | 13,300 | 578,683 | ||||||
Silgan Holdings, Inc. | 24,428 | 708,901 | ||||||
Valvoline, Inc. | 54,002 | 706,886 | ||||||
WR Grace & Co. | 20,374 | 725,314 | ||||||
5,051,674 | ||||||||
Consumer Discretionary — 6.8% | ||||||||
Callaway Golf Co. | 44,764 | 457,488 | ||||||
Carter's, Inc. | 9,974 | 655,591 | ||||||
Murphy USA, Inc.* | 20,033 | 1,689,984 | ||||||
Oxford Industries, Inc. | 9,444 | 342,439 | ||||||
Steven Madden Ltd. | 15,780 | 366,569 | ||||||
Texas Roadhouse, Inc. | 7,727 | 319,125 | ||||||
Vista Outdoor, Inc.* | 68,015 | 598,532 | ||||||
4,429,728 | ||||||||
Real Estate — 5.6% | ||||||||
Blackstone Mortgage Trust, Inc. - Class A REIT | 48,268 | 898,750 | ||||||
Columbia Property Trust, Inc. REIT | 65,136 | 814,200 | ||||||
Corporate Office Properties Trust REIT | 43,452 | 961,593 | ||||||
Dynex Capital, Inc. REIT | 32,704 | 341,430 | ||||||
Lexington Realty Trust REIT | 63,462 | 630,178 | ||||||
3,646,151 | ||||||||
Health Care — 4.6% | ||||||||
Envista Holdings Corp.* | 70,381 | 1,051,492 | ||||||
Integra LifeSciences Holdings Corp.* | 11,686 | 522,014 | ||||||
NuVasive, Inc.* | 4,520 | 228,983 | ||||||
Prestige Consumer Healthcare, Inc.* | 32,845 | 1,204,755 | ||||||
3,007,244 | ||||||||
Communication Services — 2.8% | ||||||||
Cogent Communications Holdings, Inc. | 13,519 | 1,108,152 | ||||||
Nexstar Media Group, Inc. - Class A | 12,612 | 728,091 | ||||||
1,836,243 | ||||||||
Energy — 0.9% | ||||||||
Callon Petroleum Co.* | 198,148 | 108,565 | ||||||
DMC Global, Inc. | 13,454 | 309,577 | ||||||
PDC Energy, Inc.* | 9,019 | 56,008 | ||||||
Select Energy Services, Inc. - Class A* | 37,465 | 121,012 | ||||||
595,162 | ||||||||
Total Common Stocks | $ | 63,377,746 | ||||||
Exchange-Traded Fund — 1.8% | ||||||||
iShares Russell 2000 Value ETF | 14,208 | $ | 1,165,482 |
41
Touchstone Small Cap Value Fund(Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Short-Term Investment Fund — 1.5% | ||||||||
Dreyfus Government Cash Management, InstitutionalShares, 0.29%∞Ω | 947,556 | $ | 947,556 | |||||
Total Investment Securities —100.6% | ||||||||
(Cost $84,395,016) | $ | 65,490,784 | ||||||
Liabilities in Excess of Other Assets — (0.6%) | (370,343 | ) | ||||||
Net Assets — 100.0% | $ | 65,120,441 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
ETF - Exchange-Traded Fund
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 | $ | 63,377,746 | $ | — | $ | — | $ | 63,377,746 | ||||||||
Exchange-Traded Fund | 1,165,482 | — | — | 1,165,482 | ||||||||||||
Short-Term Investment Fund | 947,556 | — | — | 947,556 | ||||||||||||
Total | $ | 65,490,784 | $ | — | $ | — | $ | 65,490,784 |
See accompanying Notes to Financial Statements.
42
Touchstone Ultra Short Duration Fixed Income Fund – March 31, 2020 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 39.3% | ||||||||
$ | 2,242,921 | Accredited Mortgage Loan Trust, Ser 2005-1, Class M1, (1M LIBOR +0.705%), 1.652% 4/25/35(A) | $ | 2,199,058 | ||||
5,490,000 | ALM XVI Ltd./ALM XVI LLC (Cayman Islands), Ser 2015-16A, Class AAR2, 144a, (3M LIBOR +0.900%), 2.731% 7/15/27(A) | 5,339,596 | ||||||
4,171,307 | American Credit Acceptance Receivables Trust, Ser 2016-4, Class D, 144a, 4.110% 4/12/23 | 4,163,078 | ||||||
2,998,721 | American Credit Acceptance Receivables Trust, Ser 2017-1, Class D, 144a, 3.540% 3/13/23 | 2,988,738 | ||||||
332,983 | American Credit Acceptance Receivables Trust, Ser 2017-4, Class C, 144a, 2.940% 1/10/24 | 330,711 | ||||||
328,659 | American Credit Acceptance Receivables Trust, Ser 2018-2, Class C, 144a, 3.700% 7/10/24 | 323,377 | ||||||
7,040,000 | Ascentium Equipment Receivables Trust, Ser 2018-1A, Class B, 144a, 3.460% 11/13/23 | 7,066,761 | ||||||
2,128,521 | Ascentium Equipment Receivables Trust, Ser 2019-2A, Class A1, 144a, 2.150% 11/10/20 | 2,122,210 | ||||||
2,513,200 | Avid Automobile Receivables Trust, Ser 2019-1, Class A, 144a, 2.620% 2/15/24 | 2,454,402 | ||||||
1,500,000 | Avis Budget Rental Car Funding AESOP LLC, Ser 2015-2A, Class C, 144a, 3.930% 12/20/21 | 1,481,366 | ||||||
2,465,832 | BCC Funding Corp. XVI LLC, Ser 2019-1A, Class A1, 144a, 2.300% 10/20/20 | 2,405,090 | ||||||
6,048,000 | BDS Ltd. (Cayman Islands), Ser 2020-FL5, Class B,144a, (1M LIBOR +1.800%), 2.412% 2/16/37(A) | 5,367,721 | ||||||
1,328,316 | Bear Stearns Asset Backed Securities Trust, Ser 2005-SD2, Class 1M1, (1M LIBOR +0.650%),1.597% 3/25/35(A) | 1,296,738 | ||||||
10,900,000 | BSPRT Issuer Ltd. (Cayman Islands), Ser 2018-FL4,Class A, 144a, (1M LIBOR +1.050%), 1.755% 9/15/35(A) | 10,055,953 | ||||||
5,133,437 | Carvana Auto Receivables Trust, Ser 2019-3A, Class A2, 144a, 2.420% 4/15/22 | 5,031,024 | ||||||
299,823 | CCG Receivables Trust, Ser 2017-1, Class A2, 144a, 1.840% 11/14/23 | 299,607 | ||||||
7,590,000 | Cedar Funding II CLO Ltd. (Cayman Islands), Ser 2013-1A, Class AFR, 144a, 3.020% 6/9/30 | 7,567,238 | ||||||
4,750,000 | CIFC Funding Ltd. (Cayman Islands), Ser 2012-2RA,Class A1, 144a, (3M LIBOR +0.800%),2.619% 1/20/28(A) | 4,554,656 | ||||||
763,602 | Conn's Receivables Funding, Ser 2018-A, Class A, 144a, 3.250% 1/15/23 | 745,515 | ||||||
2,095,810 | Conn's Receivables Funding, Ser 2019-B, Class A, 144a, 2.660% 6/17/24 | 1,986,043 | ||||||
2,716,405 | CPS Auto Receivables Trust, Ser 2014-D, Class D, 144a, 5.330% 11/16/20 | 2,714,242 | ||||||
6,770,000 | CPS Auto Receivables Trust, Ser 2015-A, Class D, 144a, 5.600% 2/16/21 | 6,771,661 | ||||||
12,629,300 | Domino's Pizza Master Issuer LLC, Ser 2017-1A, ClassA2I, 144a, (3M LIBOR +1.250%), 3.044% 7/25/47(A) | 11,819,383 | ||||||
4,267,845 | Drive Auto Receivables Trust, Ser 2016-BA, Class D, 144a, 4.530% 8/15/23 | 4,276,005 | ||||||
9,461,795 | Drive Auto Receivables Trust, Ser 2017-3, Class D, 144a, 3.530% 12/15/23 | 9,461,993 | ||||||
12,868,000 | Drive Auto Receivables Trust, Ser 2017-BA, Class E, 144a, 5.300% 7/15/24 | 12,953,271 | ||||||
95,019 | Drive Auto Receivables Trust, Ser 2018-4, Class B, 3.360% 10/17/22 | 95,031 | ||||||
4,935,633 | DT Auto Owner Trust, Ser 2016-3A, Class D, 144a, 4.520% 6/15/23 | 4,933,424 | ||||||
2,717,091 | DT Auto Owner Trust, Ser 2016-4A, Class D, 144a, 3.770% 10/17/22 | 2,714,598 | ||||||
4,750,576 | DT Auto Owner Trust, Ser 2017-2A, Class D, 144a, 3.890% 1/15/23 | 4,745,378 | ||||||
5,685,000 | DT Auto Owner Trust, Ser 2017-2A, Class E, 144a, 6.030% 1/15/24 | 5,748,158 | ||||||
2,405,183 | DT Auto Owner Trust, Ser 2019-3A, Class A, 144a, 2.550% 8/15/22 | 2,393,849 | ||||||
256,804 | Elara HGV Timeshare Issuer LLC, Ser 2014-A, Class A, 144a, 2.530% 2/25/27 | 254,367 | ||||||
4,277,530 | Elara HGV Timeshare Issuer LLC, Ser 2016-A, Class A, 144a, 2.730% 4/25/28 | 4,179,698 | ||||||
1,800,114 | Exeter Automobile Receivables Trust, Ser 2018-3A, Class B, 144a, 3.460% 10/17/22 | 1,796,651 | ||||||
1,371,112 | Exeter Automobile Receivables Trust, Ser 2019-2A, Class A, 144a, 2.930% 7/15/22 | 1,361,287 | ||||||
2,660,000 | First Investors Auto Owner Trust, Ser 2016-1A, Class D, 144a, 4.700% 4/18/22 | 2,661,935 | ||||||
2,718,744 | Flagship Credit Auto Trust, Ser 2016-3, Class C, 144a, 2.720% 7/15/22 | 2,711,255 | ||||||
3,662,088 | Flatiron CLO Ltd. (Cayman Islands), Ser 2015-1A,Class AR, 144a, (3M LIBOR +0.890%),2.721% 4/15/27(A) | 3,546,077 | ||||||
851,250 | Foursight Capital Automobile Receivables Trust, Ser 2018-2, Class A2, 144a, 3.320% 4/15/22 | 849,394 | ||||||
1,830,674 | GLS Auto Receivables Issuer Trust, Ser 2019-1A, Class A, 144a, 3.370% 1/17/23 | 1,822,944 | ||||||
3,675,575 | GLS Auto Receivables Issuer Trust, Ser 2019-2A, Class A, 144a, 3.060% 4/17/23 | 3,593,147 | ||||||
6,103,383 | GLS Auto Receivables Issuer Trust, Ser 2019-3A, Class A, 144a, 2.580% 7/17/23 | 6,041,922 | ||||||
6,750,764 | GLS Auto Receivables Issuer Trust, Ser 2019-4A, Class A, 144a, 2.470% 11/15/23 | 6,313,603 | ||||||
5,412,538 | GLS Auto Receivables Issuer Trust, Ser 2020-1A, Class A, 144a, 2.170% 2/15/24 | 5,268,294 | ||||||
820,407 | GLS Auto Receivables Trust, Ser 2016-1A, Class C, 144a, 6.900% 10/15/21 | 824,470 | ||||||
1,770,736 | GLS Auto Receivables Trust, Ser 2018-1A, Class A, 144a, 2.820% 7/15/22 | 1,762,608 | ||||||
891,467 | GLS Auto Receivables Trust, Ser 2018-2A, Class A, 144a, 3.250% 4/18/22 | 884,346 | ||||||
936,443 | GLS Auto Receivables Trust, Ser 2018-3A, Class A, 144a, 3.350% 8/15/22 | 930,820 | ||||||
4,790,000 | Grand Avenue CRE (Cayman Islands), Ser 2019-FL1,Class A, 144a, (1M LIBOR +1.120%),1.825% 6/15/37(A) | 4,603,300 | ||||||
10,060,790 | Hardee's Funding LLC, Ser 2018-1A, Class A2I, 144a, 4.250% 6/20/48 | 9,656,246 | ||||||
6,300,000 | Hertz Vehicle Financing II LP, Ser 2015-3A, Class B, 144a, 3.710% 9/25/21 | 6,108,178 | ||||||
3,314,000 | Hertz Vehicle Financing II LP, Ser 2016-2A, Class B, 144a, 3.940% 3/25/22 | 3,285,449 | ||||||
6,760,000 | Hertz Vehicle Financing II LP, Ser 2017-1A, Class B, 144a, 3.560% 10/25/21 | 6,577,104 | ||||||
2,627,006 | Home Equity Asset Trust, Ser 2005-3, Class M4, (1MLIBOR +0.640%), 1.587% 8/25/35(A) | 2,580,093 | ||||||
1,344,078 | Home Equity Asset Trust, Ser 2005-8, Class M1, (1MLIBOR +0.430%), 1.377% 2/25/36(A) | 1,313,698 | ||||||
8,207,550 | Jimmy Johns Funding LLC, Ser 2017-1A, Class A2I, 144a, 3.610% 7/30/47 | 8,106,679 |
43
Touchstone Ultra Short Duration Fixed Income Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 39.3% (Continued) | ||||||||
$ | 7,950,000 | Kabbage Funding LLC, Ser 2019-1, Class A, 144a, 3.825% 3/15/24 | $ | 7,731,382 | ||||
3,250,000 | Magnetite XVI Ltd. (Cayman Islands), Ser 2015-16A, Class AR, 144a, (3M LIBOR +0.800%), 2.619% 1/18/28(A) | 3,120,172 | ||||||
7,000,000 | Merrill Lynch Mortgage Investors Trust, Ser 2006-FF1, Class M4, (1M LIBOR +0.370%), 1.317% 8/25/36(A) | 6,912,867 | ||||||
852,551 | Mid-State Capital Trust, Ser 2010-1, Class M, 144a, 5.250% 12/15/45 | 865,756 | ||||||
124,517 | Morgan Stanley ABS Capital I, Inc. Trust, Ser 2006-NC1, Class A4, (1M LIBOR +0.300%), 1.247% 12/25/35(A) | 124,172 | ||||||
2,046,591 | New Century Home Equity Loan Trust, Ser 2005-B, Class A2D, (1M LIBOR +0.400%), 1.347% 10/25/35(A) | 2,016,317 | ||||||
9,204,306 | OCP CLO Ltd. (Cayman Islands), Ser 2015-8A, Class A1R, 144a, (3M LIBOR +0.850%), 2.686% 4/17/27(A) | 8,940,658 | ||||||
9,630,000 | OneMain Direct Auto Receivables Trust, Ser 2017-2A, Class E, 144a, 4.740% 11/14/25 | 9,618,394 | ||||||
295,170 | Orange Lake Timeshare Trust, Ser 2014-AA, Class A, 144a, 2.290% 7/9/29 | 293,024 | ||||||
3,089,079 | Palmer Square Loan Funding Ltd. (Cayman Islands), Ser 2018-4A, Class A1, 144a, (3M LIBOR +0.900%), 2.592% 11/15/26(A) | 2,988,514 | ||||||
5,681,077 | Palmer Square Loan Funding Ltd. (Cayman Islands), Ser 2019-1A, Class A1, 144a, (3M LIBOR +1.050%), 2.869% 4/20/27(A) | 5,490,568 | ||||||
5,450,000 | Palmer Square Loan Funding Ltd. (Cayman Islands), Ser 2020-1A, Class A1, 144a, (3M LIBOR +0.800%), 2.483% 2/20/28(A) | 5,188,950 | ||||||
1,494,504 | RAAC Trust, Ser 2006-SP4, Class M1, (1M LIBOR +0.340%), 1.287% 11/25/36(A) | 1,471,548 | ||||||
9,440,000 | Santander Drive Auto Receivables Trust, Ser 2016-2, Class E, 4.380% 9/15/23 | 9,399,830 | ||||||
9,300,000 | Santander Drive Auto Receivables Trust, Ser 2017-1, Class E, 144a, 5.050% 7/15/24 | 9,232,663 | ||||||
4,900,000 | Santander Drive Auto Receivables Trust, Ser 2017-3, Class E, 4.970% 1/15/25 | 4,904,926 | ||||||
1,976,451 | Sierra Timeshare Receivables Funding LLC, Ser 2016-3A, Class B, 144a, 2.630% 10/20/33 | 1,916,650 | ||||||
1,077,685 | Sierra Timeshare Receivables Funding LLC, Ser 2019-1A, Class B, 144a, 3.420% 1/20/36 | 1,067,428 | ||||||
2,576,817 | Structured Asset Investment Loan Trust, Ser 2005-1, Class M2, 144a, (1M LIBOR +0.720%), 1.667% 2/25/35(A) | 2,528,169 | ||||||
8,389,002 | Symphony CLO XIV Ltd. (Cayman Islands), Ser 2014-14A, Class AR, 144a, (3M LIBOR +0.950%), 2.788% 7/14/26(A) | 8,123,297 | ||||||
1,510,515 | TLF National Tax Lien Trust, Ser 2017-1A, Class A, 144a, 3.090% 12/15/29 | 1,505,440 | ||||||
995,302 | Towd Point Mortgage Trust, Ser 2015-4, Class A1B, 144a, 2.750% 4/25/55(A)(B) | 990,437 | ||||||
4,663,133 | Towd Point Mortgage Trust, Ser 2017-5, Class A1, 144a, (1M LIBOR +0.600%), 1.547% 2/25/57(A) | 4,499,286 | ||||||
7,007,455 | Towd Point Mortgage Trust, Ser 2018-SJ1, Class A1, 144a, 4.000% 10/25/58(A)(B) | 7,023,926 | ||||||
6,770,471 | Towd Point Mortgage Trust, Ser 2019-HY1, Class A1, 144a, (1M LIBOR +1.000%), 1.947% 10/25/48(A) | 6,641,906 | ||||||
4,741,038 | Towd Point Mortgage Trust, Ser 2019-MH1, Class A1, 144a, 3.000% 11/25/58(A)(B) | 4,768,381 | ||||||
3,200,365 | Towd Point Mortgage Trust, Ser 2019-SJ1, Class A1, 144a, 3.750% 11/25/58(A)(B) | 3,130,705 | ||||||
12,417,303 | Towd Point Mortgage Trust, Ser 2019-SJ3, Class A1, 144a, 3.000% 11/25/59(A)(B) | 12,317,342 | ||||||
1,151,972 | United Auto Credit Securitization Trust, Ser 2018-1, Class D, 144a, 3.520% 11/10/22 | 1,148,852 | ||||||
1,396,827 | United Auto Credit Securitization Trust, Ser 2018-2, Class C, 144a, 3.780% 5/10/23 | 1,394,917 | ||||||
8,589,222 | Venture XII CLO Ltd. (Cayman Islands), Ser 2012-12A, Class ARR, 144a, (3M LIBOR +0.800%), 2.413% 2/28/26(A) | 8,210,428 | ||||||
785,069 | Welk Resorts LLC, Ser 2013-AA, Class A, 144a, 3.100% 3/15/29 | 784,922 | ||||||
5,492,109 | Westlake Automobile Receivables Trust, Ser 2016-3A, Class D, 144a, 3.580% 1/18/22 | 5,491,810 | ||||||
2,451,759 | Westlake Automobile Receivables Trust, Ser 2017-1A, Class D, 144a, 3.460% 10/17/22 | 2,447,001 | ||||||
1,430,000 | Westlake Automobile Receivables Trust, Ser 2017-1A, Class E, 144a, 5.050% 8/15/24 | 1,430,029 | ||||||
4,035,000 | Westlake Automobile Receivables Trust, Ser 2017-2A, Class D, 144a, 3.280% 12/15/22 | 4,019,383 | ||||||
Total Asset-Backed Securities | $ | 381,179,490 | ||||||
Corporate Bonds — 28.6% | ||||||||
Financials — 11.4% | ||||||||
5,000,000 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Ireland), 4.250%, 7/1/20 | 4,932,477 | ||||||
2,933,000 | Citibank NA, (3M LIBOR +0.350%), 2.063%, 2/12/21(A) | 2,906,025 | ||||||
11,500,000 | Citibank NA, (3M LIBOR +0.600%), 2.295%, 5/20/22(A) | 11,112,373 | ||||||
5,015,000 | Citizens Bank NA/Providence RI, (3M LIBOR +0.810%), 2.457%, 5/26/22(A) | 4,592,099 | ||||||
5,000,000 | Credit Agricole SA (France), 144a, 2.750%, 6/10/20 | 5,009,450 | ||||||
10,000,000 | Credit Suisse AG/New York NY (Switzerland), (SOFR +0.450%), 1.204%, 2/4/22(A) | 9,364,655 | ||||||
300,000 | Credit Suisse Group Funding Guernsey Ltd. (Guernsey), 144a, 3.125%, 12/10/20 | 299,699 | ||||||
4,000,000 | FNB Corp., 2.200%, 2/24/23 | 3,923,701 | ||||||
8,199,000 | Huntington Bancshares, Inc., 7.000%, 12/15/20 | 8,398,540 | ||||||
10,000,000 | Morgan Stanley, (SOFR +0.830%), 0.924%, 6/10/22(A) | 9,545,119 | ||||||
7,200,000 | New York Life Global Funding, 144a, (3M LIBOR +0.440%), 2.288%, 7/12/22(A) | 6,915,651 | ||||||
10,000,000 | Royal Bank of Canada (Canada) MTN, (3M LIBOR +0.300%), 2.102%, 7/22/20(A) | 9,973,579 | ||||||
1,103,000 | SBA Tower Trust, 144a, 2.877%, 7/9/21 | 1,099,218 | ||||||
1,000,000 | SBA Tower Trust, 144a, 3.156%, 10/8/20 | 998,529 | ||||||
4,310,000 | Sparta Agency, Inc., 2.650%, 12/1/23(A)(B) | 4,310,000 | ||||||
10,000,000 | Toronto-Dominion Bank (The) (Canada) MTN, (3M LIBOR +0.300%), 2.070%, 7/30/21(A) | 9,743,716 | ||||||
4,500,000 | Truist Bank, (3M LIBOR +0.590%), 2.282%, 5/17/22(A) | 4,388,239 | ||||||
7,000,000 | Truist Financial Corp. MTN, 2.150%, 2/1/21 | 6,941,233 | ||||||
1,700,000 | Wells Fargo & Co., (3M LIBOR +1.025%), 2.819%, 7/26/21(A) | 1,685,189 | ||||||
4,550,000 | Zions Bancorp NA, 3.500%, 8/27/21 | 4,545,394 | ||||||
110,684,886 | ||||||||
Industrials — 3.7% | ||||||||
9,700,000 | Eaton Electric Holdings LLC, 3.875%, 12/15/20 | 9,690,882 | ||||||
6,875,000 | Martin Marietta Materials, Inc., (3M LIBOR +0.650%), 2.333%, 5/22/20(A) | 6,825,814 | ||||||
12,500,000 | Otis Worldwide Corp., 144a, (3M LIBOR +0.450%), 1.802%, 4/5/23(A) | 11,854,000 |
44
Touchstone Ultra Short Duration Fixed Income Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 28.6% (Continued) | ||||||||
Industrials — (Continued) | ||||||||
$ | 8,156,000 | Vulcan Materials Co., (3M LIBOR +0.650%), 2.230%, 3/1/21(A) | $ | 7,845,242 | ||||
36,215,938 | ||||||||
Consumer Discretionary — 2.9% | ||||||||
10,700,000 | American Honda Finance Corp. MTN, (3M LIBOR +0.350%), 1.118%, 6/11/21(A) | 10,328,853 | ||||||
2,500,000 | Hyundai Capital America, 144a, 2.375%, 2/10/23 | 2,356,978 | ||||||
3,161,000 | Hyundai Capital America, 144a, 2.750%, 9/18/20 | 3,168,473 | ||||||
5,360,000 | Hyundai Capital America, 144a, 3.000%, 10/30/20 | 5,358,006 | ||||||
6,800,000 | Volkswagen Group of America Finance LLC, 144a, 3.875%, 11/13/20 | 6,778,142 | ||||||
27,990,452 | ||||||||
Energy — 2.2% | ||||||||
2,366,000 | Enbridge, Inc. (Canada), (3M LIBOR +0.700%), 1.441%, 6/15/20(A) | 2,340,530 | ||||||
10,700,000 | MPLX LP, (3M LIBOR +0.900%), 1.899%, 9/9/21(A) | 10,110,806 | ||||||
5,000,000 | Occidental Petroleum Corp., (3M LIBOR +1.250%), 2.957%, 8/13/21(A) | 3,750,407 | ||||||
2,460,000 | Phillips 66, (3M LIBOR +0.600%), 2.247%, 2/26/21(A) | 2,301,163 | ||||||
1,250,000 | Phillips 66, 144a, (3M LIBOR +0.750%), 2.581%, 4/15/20(A) | 1,248,899 | ||||||
50,850 | Ras Laffan Liquefied Natural Gas Co. Ltd. II (Qatar), 144a, 5.298%, 9/30/20 | 51,379 | ||||||
1,500,000 | Spectra Energy Partners LP, (3M LIBOR +0.700%), 2.014%, 6/5/20(A) | 1,483,991 | ||||||
21,287,175 | ||||||||
Consumer Staples — 2.1% | ||||||||
773,000 | Conagra Brands, Inc., (3M LIBOR +0.750%), 2.552%, 10/22/20(A) | 764,819 | ||||||
5,000,000 | Constellation Brands, Inc., (3M LIBOR +0.700%), 2.392%, 11/15/21(A) | 4,713,195 | ||||||
3,925,000 | General Mills, Inc., (3M LIBOR +0.540%), 2.383%, 4/16/21(A) | 3,821,220 | ||||||
2,511,000 | Grupo Bimbo SAB de CV (Mexico), 144a, 4.875%, 6/30/20 | 2,532,978 | ||||||
1,570,000 | Reckitt Benckiser Treasury Services PLC (United Kingdom), 144a, (3M LIBOR +0.560%), 1.764%, 6/24/22(A) | 1,514,194 | ||||||
3,200,000 | Tyson Foods, Inc., (3M LIBOR +0.550%), 2.130%, 6/2/20(A) | 3,191,952 | ||||||
3,200,000 | Woolworths Group Ltd. (Australia), 144a, 4.000%, 9/22/20 | 3,238,984 | ||||||
19,777,342 | ||||||||
Utilities — 1.8% | ||||||||
3,000,000 | Dominion Energy, Inc., 2.579%, 7/1/20 | 2,996,399 | ||||||
1,192,000 | NextEra Energy Capital Holdings, Inc., (3M LIBOR +0.550%), 2.163%, 8/28/21(A) | 1,167,840 | ||||||
2,500,000 | NextEra Energy Capital Holdings, Inc., 2.403%, 9/1/21 | 2,497,792 | ||||||
2,700,000 | Public Service Co. of New Hampshire, 4.050%, 6/1/21 | 2,771,552 | ||||||
8,207,000 | Sempra Energy, (3M LIBOR +0.500%), 2.331%, 1/15/21(A) | 7,773,915 | ||||||
17,207,498 | ||||||||
Health Care — 1.5% | ||||||||
2,100,000 | Amgen, Inc., 2.200%, 5/11/20 | 2,099,853 | ||||||
2,720,000 | Cigna Corp., (3M LIBOR +0.650%), 1.493%, 9/17/21(A) | 2,611,200 | ||||||
7,225,000 | Dignity Health, 3.125%, 11/1/22 | 7,367,987 | ||||||
2,475,000 | Zimmer Biomet Holdings, Inc., (3M LIBOR +0.750%), 1.802%, 3/19/21(A) | 2,445,167 | ||||||
14,524,207 | ||||||||
Information Technology — 1.0% | ||||||||
9,500,000 | International Business Machines Corp., (3M LIBOR +0.400%), 2.107%, 5/13/21(A) | 9,385,600 | ||||||
Real Estate — 0.8% | ||||||||
8,300,000 | SL Green Operating Partnership LP, (3M LIBOR +0.980%), 2.672%, 8/16/21(A) | 8,077,072 | ||||||
Communication Services — 0.7% | ||||||||
4,040,000 | Crown Castle Towers LLC, 144a, 3.222%, 5/15/22 | 4,041,492 | ||||||
3,000,000 | Interpublic Group of Cos., Inc. (The), 3.500%, 10/1/20 | 2,954,438 | ||||||
6,995,930 | ||||||||
Materials — 0.5% | ||||||||
5,000,000 | Eastman Chemical Co., 3.500%, 12/1/21 | 5,133,470 | ||||||
Total Corporate Bonds | $ | 277,279,570 | ||||||
Commercial Mortgage-Backed Securities — 16.2% | ||||||||
4,800,000 | Austin Fairmont Hotel Trust, Ser 2019-FAIR, Class C, 144a, (1M LIBOR +1.450%), 2.155%, 9/15/32(A) | 3,807,926 | ||||||
9,700,000 | Bear Stearns Commercial Mortgage Securities Trust, Ser 2005-PWR9, Class D, 5.074%, 9/11/42(A)(B) | 9,623,934 | ||||||
8,145,000 | BHMS, Ser 2018-ATLS, Class A, 144a, (1M LIBOR +1.250%), 1.955%, 7/15/35(A) | 6,813,986 | ||||||
7,200,000 | BXP Trust, Ser 2017-CQHP, Class A, 144a, (1M LIBOR +0.850%), 1.555%, 11/15/34(A) | 6,100,065 | ||||||
4,440,000 | CCRESG Commercial Mortgage Trust, Ser 2016-HEAT, Class A, 144a, 3.357%, 4/10/29 | 4,280,950 | ||||||
1,430,000 | CCRESG Commercial Mortgage Trust, Ser 2016-HEAT, Class B, 144a, 4.114%, 4/10/29 | 1,381,900 | ||||||
2,373,006 | CD Mortgage Trust, Ser 2006-CD3, Class AM, 5.648%, 10/15/48 | 2,430,409 | ||||||
8,160,000 | Citigroup Commercial Mortgage Trust, Ser 2015-GC35, Class A2, 3.063%, 11/10/48 | 8,170,322 | ||||||
68,780,000 | Citigroup Commercial Mortgage Trust, Ser 2019-SST2, Class XCP, 144a, 1.668%, 12/15/36(A)(B)(C) | 1,031,253 | ||||||
35,820,801 | COMM Mortgage Trust, Ser 2014-UBS3, Class XA, 1.077%, 6/10/47(A)(B)(C) | 1,322,253 | ||||||
5,806,661 | COMM Mortgage Trust, Ser 2015-PC1, Class A2, 3.148%, 7/10/50 | 5,801,379 | ||||||
2,680,000 | CSMC Trust, Ser 2017-CHOP, Class A, 144a, (1M LIBOR +0.750%), 1.455%, 7/15/32(A) | 2,313,088 | ||||||
1,076,000 | CSMC Trust, Ser 2017-HD, Class B, 144a, (1M LIBOR +1.350%), 2.055%, 2/15/31(A) | 1,035,230 | ||||||
6,080,000 | CSMC Trust, Ser 2017-PFHP, Class A, 144a, (1M LIBOR +0.950%), 1.655%, 12/15/30(A) | 5,140,771 | ||||||
10,072,552 | DBRR Trust, Ser 2011-LC2, Class A4A, 144a, 4.537%, 7/12/44(A)(B) | 10,084,663 | ||||||
351,928 | DBUBS Mortgage Trust, Ser 2011-LC2A, Class A1FL, 144a, (1M LIBOR +1.350%), 2.161%, 7/12/44(A) | 352,604 | ||||||
118,906,000 | GS Mortgage Securities Corp. II, Ser 2017-SLP, Class XA, 144a, 1.172%, 10/10/32(A)(B)(C) | 3,010,486 | ||||||
143,822,000 | GS Mortgage Securities Corp. Trust, Ser 2017-GPTX, Class XCP, 144a, 0.786%, 5/10/34(A)(B)(C) | 93,786 | ||||||
7,737,335 | J.P. Morgan Chase Commercial Mortgage Securities Trust, Ser 2017-FL11, Class A, 144a, (1M LIBOR +0.850%), 1.555%, 10/15/32(A) | 7,748,303 | ||||||
5,000,000 | JP Morgan Chase Commercial Mortgage Securities Trust, Ser 2015-UES, Class B, 144a, 3.387%, 9/5/32 | 4,936,319 |
45
Touchstone Ultra Short Duration Fixed Income Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Commercial Mortgage-Backed Securities — 16.2% (Continued) | ||||||||
$ | 3,467,889 | JPMBB Commercial Mortgage Securities Trust, Ser 2014-C24, Class A2, 2.940%, 11/15/47 | $ | 3,463,159 | ||||
4,790,000 | Morgan Stanley Bank of America Merrill Lynch Trust, Ser 2012-C5, Class E, 144a, 4.677%, 8/15/45(A)(B) | 4,318,052 | ||||||
737,143 | Morgan Stanley Capital I Trust, Ser 2007-IQ15, Class B, 144a, 6.128%, 6/11/49(A)(B) | 730,670 | ||||||
8,280,000 | Morgan Stanley Capital I Trust, Ser 2018-BOP, Class A, 144a, (1M LIBOR +0.850%), 1.555%, 8/15/33(A) | 7,746,878 | ||||||
7,275,000 | Ready Captial Mortgage Financing, Ser 2019-FL3, Class A, 144a, (1M LIBOR +1.000%), 1.947%, 3/25/34(A) | 6,581,031 | ||||||
1,969,400 | ReadyCap Commercial Mortgage Trust, Ser 2018-4, Class A, 144a, 3.390%, 2/27/51 | 1,980,433 | ||||||
2,330,011 | ReadyCap Mortgage Trust, Ser 2016-3, Class B, 144a, 3.752%, 11/20/38 | 2,321,051 | ||||||
3,442,841 | Tharaldson Hotel Portfolio Trust, Ser 2018-THL, Class A, 144a, (1M LIBOR +0.750%), 1.755%, 11/11/34(A) | 3,253,052 | ||||||
9,616,463 | Tharaldson Hotel Portfolio Trust, Ser 2018-THL, Class B, 144a, (1M LIBOR +1.100%), 2.105%, 11/11/34(A) | 9,137,856 | ||||||
6,450,000 | UBS-Barclays Commercial Mortgage Trust, Ser 2012-C3, Class D, 144a, 5.031%, 8/10/49(A)(B) | 5,852,209 | ||||||
12,336,200 | UBS-Citigroup Commercial Mortgage Trust, Ser 2011-C1, Class XA, 144a, 2.154%, 1/10/45(A)(B)(C) | 275,924 | ||||||
1,780,000 | VNDO Mortgage Trust, Ser 2013-PENN, Class C, 144a, 3.947%, 12/13/29(A)(B) | 1,759,698 | ||||||
1,199,000 | VNDO Mortgage Trust, Ser 2013-PENN, Class D, 144a, 3.947%, 12/13/29(A)(B) | 1,179,716 | ||||||
2,066,807 | WFRBS Commercial Mortgage Trust, Ser 2011-C4, Class AFL, 144a, (1M LIBOR +1.450%), 2.250%, 6/15/44(A) | 2,077,668 | ||||||
11,405,000 | WFRBS Commercial Mortgage Trust, Ser 2012-C7, Class AFL, 144a, (1M LIBOR +1.200%), 2.000%, 6/15/45(A) | 11,511,376 | ||||||
10,450,000 | WFRBS Commercial Mortgage Trust, Ser 2013-C12, Class D, 144a, 4.406%, 3/15/48(A)(B) | 9,128,798 | ||||||
Total Commercial Mortgage-Backed Securities | $ | 156,797,198 | ||||||
Agency Collateralized Mortgage Obligations — 2.6% | ||||||||
39,183,253 | FHLMC Multifamily Structured Pass Through Certificates, Ser K504 Class X1, 0.107%, 9/25/20(A)(B)(C) | 392 | ||||||
122,574,036 | FHLMC Multifamily Structured Pass Through Certificates, Ser KAIV Class X1, 1.234%, 6/25/21(A)(B)(C) | 1,016,617 | ||||||
4,466 | FHLMC REMIC, Ser 2510 Class TA, 4.000%, 6/15/32 | 4,488 | ||||||
247,125 | FHLMC REMIC, Ser 2770 Class FH, (1M LIBOR +0.400%), 1.105%, 3/15/34(A) | 244,551 | ||||||
266,902 | FHLMC REMIC, Ser 3874 Class BD, 3.000%, 6/15/21 | 268,876 | ||||||
1,820,215 | FHLMC REMIC, Ser 4238 Class TL, 1.250%, 8/15/27 | 1,795,194 | ||||||
110,990 | FNMA REMIC, Ser 2003-119, Class PU, 4.000%, 11/25/33 | 115,730 | ||||||
48,672 | FNMA REMIC, Ser 2003-33, Class AM, 4.250%, 5/25/33 | 53,351 | ||||||
38,896 | FNMA REMIC, Ser 2003-42, Class CA, 4.000%, 5/25/33 | 41,886 | ||||||
194,367 | FNMA REMIC, Ser 2003-81, Class FE, (1M LIBOR +0.500%), 1.447%, 9/25/33(A) | 192,951 | ||||||
366,582 | FNMA REMIC, Ser 2009-32, Class BH, 5.250%, 5/25/39 | 396,430 | ||||||
954 | FNMA REMIC, Ser 2010-13, Class WD, 4.250%, 3/25/25 | 966 | ||||||
404,669 | FNMA REMIC, Ser 2010-64, Class AD, 3.000%, 12/25/20 | 405,643 | ||||||
263,596 | FNMA REMIC, Ser 2011-15, Class HC, 2.500%, 3/25/26 | 264,545 | ||||||
138,838 | FNMA REMIC, Ser 2012-102, Class NA, 1.500%, 9/25/27 | 140,298 | ||||||
894,475 | FNMA REMIC, Ser 2012-47, Class AI, 3.000%, 5/25/22(C) | 21,085 | ||||||
142,031 | FNMA REMIC Trust, Ser 2001-W4, Class AF5, 6.114%, 2/25/32(A)(B) | 171,163 | ||||||
271,819 | FREMF Mortgage Trust, Ser 2010-K7, Class B, 144a, 5.625%, 4/25/20(A)(B) | 271,079 | ||||||
7,074,000 | FREMF Mortgage Trust, Ser 2010-K9, Class B, 144a, 5.207%, 9/25/45(A)(B) | 7,092,912 | ||||||
6,208,000 | FREMF Mortgage Trust, Ser 2014-K714, Class B, 144a, 3.910%, 1/25/47(A)(B) | 6,208,867 | ||||||
2,246,285 | FREMF Mortgage Trust, Ser 2014-K714, Class C, 144a, 3.910%, 1/25/47(A)(B) | 2,241,869 | ||||||
81,711 | GNMA, Ser 2002-72, Class AB, 4.500%, 10/20/32 | 84,046 | ||||||
52,775 | GNMA, Ser 2011-57, Class BA, 3.000%, 5/20/40 | 55,585 | ||||||
156,819 | GNMA, Ser 2012-27, Class A, 1.614%, 7/16/39 | 155,942 | ||||||
3,985,253 | GNMA, Ser 2016-95, Class F, (1M LIBOR +0.450%),1.155%, 1/16/58(A) | 3,820,413 | ||||||
Total Agency Collateralized Mortgage Obligations | $ | 25,064,879 | ||||||
Municipal Bonds — 2.0% | ||||||||
California — 0.2% | ||||||||
1,575,000 | CA St Enterprise Dev Authority, Txbl Variable J Harris Indl Wt, (LOC: City National Bank), 144a, 2.470%, 9/1/41(A)(B) | 1,575,000 | ||||||
Illinois — 0.4% | ||||||||
4,200,000 | Regional Transportation Authority, Txbl Ser A, 3.013%, 5/29/20 | 4,205,586 | ||||||
New Jersey — 0.6% | ||||||||
5,600,000 | Taxable Municipal Funding Trust, Txbl Muni Fltrs Ser 2019-014, (LOC: Barclays Bank PLC), 144a, 2.150%, 9/1/27(A)(B) | 5,600,000 | ||||||
Other Territory — 0.4% | ||||||||
200,000 | Rib Floater Trust, Txbl Muni Floaters Trust Ser 201, (LOC: Barclays Bank PLC), 144a, 2.150%, 7/1/22(A)(B) | 200,000 | ||||||
4,000,000 | Taxable Municipal Funding Trust, Txbl Muni Fltrs Btmft 2020-003, (LOC: Barclays Bank PLC), 144a, 2.150%, 1/16/25(A)(B) | 4,000,000 | ||||||
4,200,000 | ||||||||
Wisconsin — 0.4% | ||||||||
4,000,000 | Public Finance Authority, Txbl Affinity Living Group 5 A, (LOC: Citizens Bank of MA), 3.750%, 2/1/22 | 4,000,240 | ||||||
Total Municipal Bonds | $ | 19,580,826 | ||||||
U.S. Government Mortgage-Backed Obligations — 1.4% | ||||||||
181,889 | FHLMC, Pool #1B7189, (12M LIBOR +2.470%), 5.288%, 3/1/36(A) | 186,578 | ||||||
286,130 | FHLMC, Pool #1H1354, (1 Year CMT Rate +2.250%), 4.605%, 11/1/36(A) | 289,256 | ||||||
124,948 | FHLMC, Pool #1J1813, (12M LIBOR +1.925%), 4.403%, 8/1/37(A) | 126,417 | ||||||
97,463 | FHLMC, Pool #1L0147, (1 Year CMT Rate +2.290%), 4.665%, 7/1/35(A) | 98,380 | ||||||
100,720 | FHLMC, Pool #1Q0080, (12M LIBOR +1.677%), 4.194%, 1/1/36(A) | 101,388 |
46
Touchstone Ultra Short Duration Fixed Income Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed Obligations — 1.4% (Continued) | ||||||||
$ | 219,884 | FHLMC, Pool #1Q0119, (12M LIBOR +1.845%), 4.417%, 9/1/36(A) | $ | 222,624 | ||||
262,548 | FHLMC, Pool #1Q0187, (12M LIBOR +1.780%), 4.308%, 12/1/36(A) | 265,138 | ||||||
122,181 | FHLMC, Pool #1Q0339, (12M LIBOR +1.917%), 4.882%, 4/1/37(A) | 123,934 | ||||||
220,723 | FHLMC, Pool #1Q1303, (1 Year CMT Rate +2.250%), 4.622%, 11/1/36(A) | 222,233 | ||||||
265,831 | FHLMC, Pool #781515, (1 Year CMT Rate +2.250%), 4.829%, 4/1/34(A) | 267,781 | ||||||
135,547 | FHLMC, Pool #782760, (1 Year CMT Rate +2.250%), 4.420%, 11/1/36(A) | 136,522 | ||||||
119,737 | FHLMC, Pool #847795, (1 Year CMT Rate +2.281%), 4.704%, 4/1/35(A) | 121,286 | ||||||
327,868 | FHLMC, Pool #848539, (1 Year CMT Rate +2.268%), 4.781%, 4/1/37(A) | 330,411 | ||||||
620,723 | FHLMC, Pool #848583, (1 Year CMT Rate +2.314%), 4.838%, 1/1/36(A) | 627,774 | ||||||
10,256 | FHLMC, Pool #A92646, 5.500%, 6/1/40 | 11,690 | ||||||
10,676 | FHLMC, Pool #C03505, 5.500%, 6/1/40 | 12,072 | ||||||
40,934 | FHLMC, Pool #C66916, 7.000%, 5/1/32 | 44,518 | ||||||
834 | FHLMC, Pool #G00100, 8.000%, 2/1/23 | 890 | ||||||
31,710 | FHLMC, Pool #G01840, 5.000%, 7/1/35 | 35,113 | ||||||
16,297 | FHLMC, Pool #G11769, 5.000%, 10/1/20 | 17,105 | ||||||
12,307 | FHLMC, Pool #G11773, 5.000%, 10/1/20 | 12,917 | ||||||
21,961 | FNMA, Pool #175123, 7.450%, 8/1/22 | 22,248 | ||||||
2,063 | FNMA, Pool #207530, 8.250%, 4/1/22 | 2,070 | ||||||
98,157 | FNMA, Pool #254868, 5.000%, 9/1/33 | 108,681 | ||||||
44,074 | FNMA, Pool #256272, 5.500%, 6/1/26 | 48,238 | ||||||
70,885 | FNMA, Pool #256852, 6.000%, 8/1/27 | 78,389 | ||||||
17,411 | FNMA, Pool #323832, 7.500%, 7/1/29 | 20,378 | ||||||
1,222 | FNMA, Pool #334593, 7.000%, 5/1/24 | 1,303 | ||||||
2,224,551 | FNMA, Pool #465491, 4.066%, 7/1/20 | 2,225,024 | ||||||
26,331 | FNMA, Pool #665773, 7.500%, 6/1/31 | 26,415 | ||||||
92,283 | FNMA, Pool #679742, (1 Year CMT Rate +2.582%), 5.034%, 1/1/40(A) | 92,987 | ||||||
112,453 | FNMA, Pool #725424, 5.500%, 4/1/34 | 127,020 | ||||||
521,619 | FNMA, Pool #725490, (12M LIBOR +1.628%), 4.418%, 4/1/34(A) | 523,308 | ||||||
19,464 | FNMA, Pool #735484, 5.000%, 5/1/35 | 21,602 | ||||||
100,248 | FNMA, Pool #791978, (6M LIBOR +1.518%), 3.311%, 9/1/34(A) | 100,895 | ||||||
125,331 | FNMA, Pool #813170, (12M LIBOR +1.575%), 3.575%, 1/1/35(A) | 126,070 | ||||||
413,993 | FNMA, Pool #815323, (6M LIBOR +1.533%), 3.427%, 1/1/35(A) | 419,460 | ||||||
114,761 | FNMA, Pool #820364, (12M LIBOR +0.827%), 3.702%, 4/1/35(A) | 115,869 | ||||||
165,574 | FNMA, Pool #827787, (6M LIBOR +1.550%), 3.540%, 5/1/35(A) | 167,775 | ||||||
58,026 | FNMA, Pool #889060, 6.000%, 1/1/38 | 66,739 | ||||||
63,472 | FNMA, Pool #889061, 6.000%, 1/1/38 | 73,332 | ||||||
4,181 | FNMA, Pool #889382, 5.500%, 4/1/38 | 4,740 | ||||||
174,417 | FNMA, Pool #922674, (12M LIBOR +1.905%), 4.075%, 4/1/36(A) | 177,626 | ||||||
34,287 | FNMA, Pool #960376, 5.500%, 12/1/37 | 38,784 | ||||||
65,166 | FNMA, Pool #985670, 6.500%, 10/1/21 | 66,664 | ||||||
950,364 | FNMA, Pool #995405, 5.500%, 10/1/23 | 1,002,049 | ||||||
113,436 | FNMA, Pool #AA1150, 4.000%, 4/1/23 | 119,229 | ||||||
7,025 | FNMA, Pool #AD0941, 5.500%, 4/1/40 | 8,103 | ||||||
51,160 | FNMA, Pool #AE0363, 5.000%, 7/1/37 | 56,628 | ||||||
1,360 | FNMA, Pool #AE0727, 4.000%, 10/1/20 | 1,429 | ||||||
59,087 | FNMA, Pool #AE5441, 5.000%, 10/1/40 | 65,493 | ||||||
99,782 | FNMA, Pool #AI6588, 4.000%, 7/1/26 | 105,256 | ||||||
111,430 | FNMA, Pool #AI8506, 4.000%, 8/1/26 | 117,516 | ||||||
102,153 | FNMA, Pool #AL0211, 5.000%, 4/1/41 | 113,223 | ||||||
10,552 | FNMA, Pool #AL0302, 5.000%, 4/1/24 | 11,084 | ||||||
511,289 | FNMA, Pool #AL0478, (12M LIBOR +1.777%), 4.094%, 4/1/36(A) | 517,055 | ||||||
188,800 | FNMA, Pool #AL0543, 5.000%, 7/1/41 | 209,210 | ||||||
102,361 | FNMA, Pool #AL1105, 4.500%, 12/1/40 | 112,065 | ||||||
21,235 | FNMA, Pool #AL2591, 5.500%, 5/1/38 | 23,226 | ||||||
340,093 | FNMA, Pool #AL5275, (6M LIBOR +1.512%), 3.449%, 9/1/37(A) | 344,465 | ||||||
1,355,769 | FNMA, Pool #AL7396, (6M LIBOR +1.536%), 3.469%, 2/1/37(A) | 1,373,099 | ||||||
4,355 | GNMA, Pool #344233, 8.000%, 2/15/23 | 4,577 | ||||||
20,675 | GNMA, Pool #345123, 8.000%, 12/15/23 | 21,923 | ||||||
1,856 | GNMA, Pool #569337, 6.500%, 4/15/22 | 1,901 | ||||||
2,457 | GNMA, Pool #780322, 8.000%, 11/15/22 | 2,486 | ||||||
335,014 | GNMA, Pool #80826, (1 Year CMT Rate +1.500%), 4.000%, 2/20/34(A) | 345,153 | ||||||
129,685 | GNMA, Pool #80889, (1 Year CMT Rate +1.500%), 3.875%, 4/20/34(A) | 134,130 | ||||||
253,358 | GNMA, Pool #81016, (1 Year CMT Rate +1.500%), 3.250%, 8/20/34(A) | 261,964 | ||||||
412,315 | GNMA, Pool #82760, (1 Year CMT Rate +1.500%), 4.000%, 3/20/41(A) | 421,986 | ||||||
166,665 | GNMA, Pool #MA2392, (1 Year CMT Rate +1.500%), 3.125%, 11/20/44(A) | 170,441 | ||||||
661,526 | GNMA, Pool #MA2466, (1 Year CMT Rate +1.500%), 3.125%, 12/20/44(A) | 676,186 | ||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 14,129,521 | ||||||
Non-Agency Collateralized Mortgage Obligations — 0.8% | ||||||||
1,243,132 | Bear Stearns ARM Trust, Ser 2003-1, Class 5A1, 3.560%, 4/25/33(A)(B)†† | 1,140,419 | ||||||
207,515 | Bear Stearns ARM Trust, Ser 2004-1, Class 13A3, 3.944%, 4/25/34(A)(B)†† | 176,658 | ||||||
162,013 | Bear Stearns Asset Backed Securities Trust, Ser 2003-AC7, Class A2, 5.750%, 1/25/34(A)(B)†† | 154,252 | ||||||
29,990 | Community Program Loan Trust, Ser 1987-A, Class A5, 4.500%, 4/1/29 | 29,330 | ||||||
23,964 | FDIC Sale Guaranteed Notes Trust, Ser 2010-S3, Class A, 144a, 2.740%, 12/3/20 | 24,064 | ||||||
2,329,237 | GSR Mortgage Loan Trust, Ser 2003-13, Class 1A1, 4.273%, 10/25/33(A)(B) | 2,134,964 | ||||||
98,897 | JP Morgan Mortgage Trust, Ser 2006-A4, Class 2A2, 3.938%, 6/25/36(A)(B) | 78,326 | ||||||
18,941 | Merrill Lynch Mortgage Investors Trust, Ser 2003-A1, Class 2A, (12M LIBOR +1.625%), 3.162%, 12/25/32(A) | 16,019 | ||||||
91,501 | Merrill Lynch Mortgage Investors Trust, Ser 2004-1, Class 1A, 3.750%, 12/25/34(A)(B) | 83,170 |
47
Touchstone Ultra Short Duration Fixed Income Fund(Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Non-Agency Collateralized Mortgage Obligations — 0.8% (Continued) | ||||||||
$ | 3,205,480 | Morgan Stanley Mortgage Loan Trust, Ser 2005-6AR, Class 1M1, (1M LIBOR +0.460%), 1.407%, 11/25/35(A) | $ | 3,162,790 | ||||
564,554 | RFMSI Trust, Ser 2007-SA1, Class 1A1, 3.494%, 2/25/37(A)(B) | 416,931 | ||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 7,416,923 | ||||||
U.S. Government Agency Obligations — 0.0% | ||||||||
5,884 | Small Business Administration Participation Certificates, Ser 2002-20A, Class 1, 6.140%, 1/1/22 | 6,015 | ||||||
11,622 | Small Business Administration Participation Certificates, Ser 2003-20E, Class 1, 4.640%, 5/1/23 | 12,046 | ||||||
80,821 | Small Business Administration Pools, (Prime Rate -2.500%), 2.250%, 4/25/28(A) | 80,902 | ||||||
Total U.S. Government Agency Obligations | $ | 98,963 | ||||||
Shares | ||||||||
Short-Term Investment Fund — 8.9% | ||||||||
86,595,662 | Dreyfus Government Cash Management, Institutional Shares, 0.29%∞Ω | $ | 86,595,662 | |||||
Total Investment Securities —99.8% | ||||||||
(Cost $997,094,949) | $ | 968,143,032 | ||||||
Other Assets in Excess of | ||||||||
Liabilities — 0.2% | 1,894,329 | |||||||
Net Assets — 100.0% | $ | 970,037,361 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2020. |
(B) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(C) | Interest only security - This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
†† | The issuers and/or sponsors of certain mortgage-backed securities may no longer exist; however, the securities held by the Fund are separate legal entities organized as trusts andpubliclytraded. TheFundreceivesprincipalandinterestpaymentsdirectlyfromthese trusts. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2020. |
Portfolio Abbreviations:
ARM - Adjustable Rate Mortgage
CLO - Collateralized Loan Obligation
CMT - Constant Maturity Treasury
DAC - Designated Activity Company
FDIC - Federal Deposit Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FREMF - Freddie Mac Multifamily Securitization
GNMA - Government National Mortgage Association
LIBOR - London Interbank Offered Rate
LLC - Limited Liability Company
LOC - Letter of Credit
LP - Limited Partnership
MTN - Medium Term Note
PLC - Public Limited Company
REMIC - Real Estate Mortgage Investment Conduit
SOFR - Secured Overnight Financing Rate
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2020, these securities were valued at $558,530,817 or 57.6% 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 | $ | — | $ | 381,179,490 | $ | — | $ | 381,179,490 | ||||||||
Corporate Bonds | — | 277,279,570 | — | 277,279,570 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 156,797,198 | — | 156,797,198 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 25,064,879 | — | 25,064,879 | ||||||||||||
Municipal Bonds | — | 19,580,826 | — | 19,580,826 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 14,129,521 | — | 14,129,521 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 7,416,923 | — | 7,416,923 | ||||||||||||
U.S. Government Agency Obligations | — | 98,963 | — | 98,963 | ||||||||||||
Short-Term Investment Fund | 86,595,662 | — | — | 86,595,662 | ||||||||||||
Total | $ | 86,595,662 | $ | 881,547,370 | $ | — | $ | 968,143,032 |
See accompanying Notes to Financial Statements.
48
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49
Statements of Assets and Liabilities
March 31, 2020 (Unaudited)
Touchstone Active Bond Fund | Touchstone Anti- Benchmark® International Core Equity Fund | Touchstone Anti- Benchmark® US Core Equity Fund | Touchstone Credit Opportunities II Fund | Touchstone High Yield Fund | Touchstone Impact Bond Fund | |||||||||||||
Assets | ||||||||||||||||||
Investments, at cost | $ | 310,363,855 | $ | 36,998,320 | $ | 25,862,513 | $ | 84,707,734 | $ | 199,269,470 | $ | 310,098,530 | ||||||
Investments, at market value(A) | $ | 304,550,097 | $ | 32,804,349 | $ | 23,650,425 | $ | 71,172,947 | $ | 172,955,119 | $ | 320,913,183 | ||||||
Cash | 1,152,580 | — | — | — | — | — | ||||||||||||
Foreign currency(B) | — | 77,396 | — | 238,397 | — | — | ||||||||||||
Cash deposits held at prime broker(C) | 29,885 | — | — | 764,289 | — | — | ||||||||||||
Dividends and interest receivable | 2,018,792 | 143,132 | 43,314 | 1,367,951 | 3,053,400 | 2,069,842 | ||||||||||||
Receivable for capital shares sold | 67,959 | — | — | 3,663,588 | 8,542,472 | 2,269,445 | ||||||||||||
Loan receivable from affiliates(D) | — | — | — | — | — | — | ||||||||||||
Receivable for investments sold | 34,975,869 | — | — | 3,891,921 | 2,061,872 | — | ||||||||||||
Receivable for securities lending income | — | 495 | 109 | 358 | 948 | 642 | ||||||||||||
Tax reclaim receivable | — | 23,354 | — | — | — | — | ||||||||||||
Other assets | 23,928 | 5,291 | 7,465 | 22,593 | 20,252 | 35,543 | ||||||||||||
Total Assets | 342,819,110 | 33,054,017 | 23,701,313 | 81,122,044 | 186,634,063 | 325,288,655 | ||||||||||||
Liabilities | ||||||||||||||||||
Bank overdrafts | — | — | 773 | 695,791 | 29,876 | — | ||||||||||||
Written options, at market value(E) | — | — | — | 170,000 | — | — | ||||||||||||
Securities sold short(F) | — | — | — | 1,028,255 | — | — | ||||||||||||
Dividend and interest payable on securities sold short | — | — | — | 25,718 | — | — | ||||||||||||
Dividends payable | — | — | — | — | — | — | ||||||||||||
Payable for return of collateral for securities on loan | — | 425,240 | 140,174 | 474,200 | — | 1,101,375 | ||||||||||||
Payable for capital shares redeemed | 1,658,128 | 5,092 | — | 184,131 | 366,573 | 3,738,134 | ||||||||||||
Payable for investments purchased | 26,116,153 | — | — | 2,143,115 | 1,180,475 | — | ||||||||||||
Payable to Investment Advisor | 103,501 | 4,556 | 1,364 | 31,731 | 75,145 | 86,197 | ||||||||||||
Payable to other affiliates | 62,969 | 590 | 590 | 2,279 | 21,908 | 35,192 | ||||||||||||
Payable to Trustees | 10,981 | 10,981 | 10,981 | 10,981 | 10,980 | 10,981 | ||||||||||||
Payable for professional services | 21,003 | 23,441 | 15,840 | 31,987 | 21,363 | 20,774 | ||||||||||||
Payable for transfer agent services | 139,837 | 57 | 87 | 21,899 | 41,307 | 76,363 | ||||||||||||
Payable for reports to shareholders | 11,486 | 4,310 | 4,289 | 4,668 | 9,358 | 9,300 | ||||||||||||
Payable for pricing services | 33,292 | 30,456 | 2,251 | 32,942 | 24,183 | 16,592 | ||||||||||||
Other accrued expenses and liabilities | 5,715 | 9,303 | 1,776 | 87,520 | 2,361 | 4,620 | ||||||||||||
Total Liabilities | 28,163,065 | 514,026 | 178,125 | 4,945,217 | 1,783,529 | 5,099,528 | ||||||||||||
Net Assets | $ | 314,656,045 | $ | 32,539,991 | $ | 23,523,188 | $ | 76,176,827 | $ | 184,850,534 | $ | 320,189,127 | ||||||
Net assets consist of: | ||||||||||||||||||
Par value | $ | 304,988 | $ | 36,586 | $ | 25,695 | $ | 89,999 | $ | 253,655 | $ | 306,836 | ||||||
Paid-in capital | 405,802,170 | 36,509,971 | 25,716,091 | 106,866,857 | 227,340,347 | 314,571,354 | ||||||||||||
Distributable earnings (deficit) | (91,451,113 | ) | (4,006,566 | ) | (2,218,598 | ) | (30,780,029 | ) | (42,743,468 | ) | 5,310,937 | |||||||
Net Assets | $ | 314,656,045 | $ | 32,539,991 | $ | 23,523,188 | $ | 76,176,827 | $ | 184,850,534 | $ | 320,189,127 | ||||||
(A) Includes market value of securities on loan of: | $ | — | $ | 399,027 | $ | 129,846 | $ | 393,586 | $ | — | $ | 1,106,057 | ||||||
(B) Cost of foreign currency: | $ | — | $ | 76,826 | $ | — | $ | 248,746 | $ | — | $ | — | ||||||
(C)Represents segregated cash for securities sold short and written options. | ||||||||||||||||||
(D) See Note 5 in Notes to Financial Statements. | ||||||||||||||||||
(E) Premiums received from written options: | $ | — | $ | — | $ | — | $ | 65,991 | $ | — | $ | — | ||||||
(F)Proceeds received for securities sold short: | $ | — | $ | — | $ | — | $ | 1,371,736 | $ | — | $ | — |
See accompanying Notes to Financial Statements.
50
Statements of Assets and Liabilities(Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | ||||||||||||||||||||||
International | Mid | Mid Cap | Sands Capital | Touchstone | Touchstone | Ultra Short | ||||||||||||||||||||
ESG Equity | Cap | Value | Select Growth | Small Cap | Small Cap Value | Duration Fixed | ||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Income Fund | ||||||||||||||||||||
$ | 26,328,270 | $ | 2,556,934,140 | $ | 663,194,142 | $ | 954,305,544 | $ | 57,951,867 | $ | 84,395,016 | $ | 997,094,949 | |||||||||||||
$ | 24,188,874 | $ | 2,329,218,592 | $ | 610,422,945 | $ | 1,511,218,061 | $ | 59,496,121 | $ | 65,490,784 | $ | 968,143,032 | |||||||||||||
— | 1,919,865 | — | — | — | — | — | ||||||||||||||||||||
3,335 | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
105,828 | 2,161,965 | 954,129 | — | 77,903 | 141,270 | 3,330,516 | ||||||||||||||||||||
17,600 | 24,873,868 | 3,113,749 | 2,403,491 | 19,659 | 36,258 | 3,432,810 | ||||||||||||||||||||
— | 3,796,750 | — | — | — | — | — | ||||||||||||||||||||
629,721 | — | 10,425,482 | 40,135,444 | 187,899 | 91,530 | 125,790 | ||||||||||||||||||||
6 | — | 1,077 | 250,658 | 18 | 237 | — | ||||||||||||||||||||
25,962 | — | — | — | — | — | — | ||||||||||||||||||||
27,204 | 150,659 | 36,076 | 51,593 | 29,936 | 23,907 | 53,463 | ||||||||||||||||||||
24,998,530 | 2,362,121,699 | 624,953,458 | 1,554,059,247 | 59,811,536 | 65,783,986 | 975,085,611 | ||||||||||||||||||||
— | — | — | 4,227 | — | — | 57 | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | 183,552 | ||||||||||||||||||||
— | — | — | 70,027,174 | — | — | — | ||||||||||||||||||||
47,509 | 11,290,630 | 3,951,884 | 16,877,007 | 230,728 | 193,749 | 3,986,061 | ||||||||||||||||||||
603,247 | 86,660,501 | 14,539,886 | 7,693,861 | — | 317,055 | — | ||||||||||||||||||||
5,363 | 1,224,276 | 315,080 | 1,147,154 | 32,469 | 46,550 | 190,465 | ||||||||||||||||||||
4,097 | 427,783 | 40,124 | 1,117,033 | 578 | 3,271 | 347,260 | ||||||||||||||||||||
10,981 | 10,981 | 10,981 | 10,981 | 10,981 | 10,981 | 10,963 | ||||||||||||||||||||
— | 28,979 | 20,650 | 27,222 | 15,475 | 18,495 | 26,029 | ||||||||||||||||||||
21,761 | 738,299 | 382,346 | 678,898 | 25,454 | 59,223 | 231,724 | ||||||||||||||||||||
18,244 | 17,654 | 28,537 | 40,521 | 10,588 | 10,195 | 18,236 | ||||||||||||||||||||
933 | 765 | 1,795 | 722 | 771 | 2,231 | 42,187 | ||||||||||||||||||||
— | 7,841 | 3,721 | 51,756 | 4,674 | 1,795 | 11,716 | ||||||||||||||||||||
712,135 | 100,407,709 | 19,295,004 | 97,676,556 | 331,718 | 663,545 | 5,048,250 | ||||||||||||||||||||
$ | 24,286,395 | $ | 2,261,713,990 | $ | 605,658,454 | $ | 1,456,382,691 | $ | 59,479,818 | $ | 65,120,441 | $ | 970,037,361 | |||||||||||||
$ | 42,110 | $ | 728,476 | $ | 436,962 | $ | 1,269,917 | $ | 69,073 | $ | 37,826 | $ | 1,078,561 | |||||||||||||
27,487,522 | 2,458,056,287 | 707,542,457 | 688,393,191 | 56,789,660 | 100,074,421 | 1,096,655,210 | ||||||||||||||||||||
(3,243,237 | ) | (197,070,773 | ) | (102,320,965 | ) | 766,719,583 | 2,621,085 | (34,991,806 | ) | (127,696,410 | ) | |||||||||||||||
$ | 24,286,395 | $ | 2,261,713,990 | $ | 605,658,454 | $ | 1,456,382,691 | $ | 59,479,818 | $ | 65,120,441 | $ | 970,037,361 | |||||||||||||
$ | — | $ | — | $ | — | $ | 67,967,840 | $ | — | $ | — | $ | — | |||||||||||||
$ | 3,313 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
51
Statements of Assets and Liabilities(Unaudited) (Continued)
Touchstone Active Bond Fund | Touchstone Anti-Benchmark® International Core Equity Fund | Touchstone Anti-Benchmark® US Core Equity Fund | Touchstone Credit Opportunities II Fund | Touchstone High Yield Fund | Touchstone Impact Bond Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||||
Net assets applicable to Class A shares | $ | 119,116,384 | $ | — | $ | — | $ | 4,979,991 | $ | 12,124,395 | $ | 14,674,552 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 11,509,557 | — | — | 595,967 | 1,707,738 | 1,408,019 | ||||||||||||
Net asset value price per share* | $ | 10.35 | $ | — | $ | — | $ | 8.36 | $ | 7.10 | $ | 10.42 | ||||||
Maximum sales charge - Class A shares | 2.00 | % | — | — | 5.00 | % | 2.00 | % | 2.00 | % | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares | $ | 10.56 | $ | — | $ | — | $ | 8.80 | $ | 7.24 | $ | 10.63 | ||||||
Pricing of Class C Shares | ||||||||||||||||||
Net assets applicable to Class C shares | $ | 9,617,163 | $ | — | $ | — | $ | 3,241,996 | $ | 2,758,355 | $ | 1,653,245 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 1,011,601 | — | — | 399,347 | 389,618 | 158,794 | ||||||||||||
Net asset value and offering price per share** | $ | 9.51 | $ | — | $ | — | $ | 8.12 | $ | 7.08 | $ | 10.41 | ||||||
Pricing of Class S Shares | ||||||||||||||||||
Net assets applicable to Class S shares | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | — | — | — | — | — | — | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Pricing of Class Y Shares | ||||||||||||||||||
Net assets applicable to Class Y shares | $ | 84,914,703 | $ | 31,947 | $ | 112,209 | $ | 30,117,311 | $ | 34,974,915 | $ | 112,395,304 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 8,211,074 | 3,593 | 12,256 | 3,559,651 | 4,786,724 | 10,769,025 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.34 | $ | 8.89 | $ | 9.16 | $ | 8.46 | $ | 7.31 | $ | 10.44 | ||||||
Pricing of Class Z Shares | ||||||||||||||||||
Net assets applicable to Class Z shares | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | — | — | — | — | — | — | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
Pricing of Institutional Class Shares | ||||||||||||||||||
Net assets applicable to Institutional Class shares | $ | 101,007,795 | $ | 32,508,044 | $ | 23,410,979 | $ | 37,837,529 | $ | 134,992,869 | $ | 191,466,026 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 9,766,617 | 3,655,023 | 2,557,152 | 4,444,842 | 18,481,419 | 18,347,748 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.34 | $ | 8.89 | $ | 9.16 | $ | 8.51 | $ | 7.30 | $ | 10.44 |
* There is no sales load on subscriptions of $1 million or more for all funds except for Active Bond Fund, High Yield Fund, Impact Bond Fund and Ultra Short Duration Fixed Income Fund. There is no sales load on subscriptions of $500,000 or more for Active Bond Fund, High Yield Fund, Impact Bond Fund and Ultra Short Duration Fixed Income Fund. Redemptions that were part of a $500,000 or $1 million or more subscription, as applicable, may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase.
** Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge. See accompanying Notes to Financial Statements.
52
Statements of Assets and Liabilities(Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | Touchstone | ||||||||||||||||||||||
International | Mid | Mid Cap | Sands Capital | Touchstone | Touchstone | Ultra Short | ||||||||||||||||||||
ESG Equity | Cap | Value | Select Growth | Small Cap | Small Cap Value | Duration Fixed | ||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | Income Fund | ||||||||||||||||||||
$ | 8,637,790 | $ | 66,665,995 | $ | 8,005,840 | $ | 81,033,162 | $ | 2,635,506 | $ | 15,290,880 | $ | 65,175,583 | |||||||||||||
1,495,384 | 2,166,841 | 581,854 | 7,463,308 | 310,649 | 889,156 | 7,245,712 | ||||||||||||||||||||
$ | 5.78 | $ | 30.77 | $ | 13.76 | $ | 10.86 | $ | 8.48 | $ | 17.20 | $ | 9.00 | |||||||||||||
5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 2.00 | % | |||||||||||||
$ | 6.08 | $ | 32.39 | $ | 14.48 | $ | 11.43 | $ | 8.93 | $ | 18.11 | $ | 9.18 | |||||||||||||
$ | 5,458,999 | $ | 62,142,153 | $ | 3,468,897 | $ | 41,807,599 | $ | 1,685,576 | $ | 548,818 | $ | 5,219,838 | |||||||||||||
947,422 | 2,159,179 | 260,096 | 4,535,672 | 217,427 | 33,059 | 579,846 | ||||||||||||||||||||
$ | 5.76 | $ | 28.78 | $ | 13.34 | $ | 9.22 | $ | 7.75 | $ | 16.60 | $ | 9.00 | |||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 127,333,043 | |||||||||||||
— | — | — | — | — | — | 14,154,300 | ||||||||||||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9.00 | |||||||||||||
$ | 10,187,391 | $ | 1,457,013,289 | $ | 248,231,061 | $ | 969,826,257 | $ | 28,677,596 | $ | 21,086,463 | $ | 291,928,925 | |||||||||||||
1,767,833 | 46,796,423 | 17,960,026 | 81,553,085 | 3,310,589 | 1,223,395 | 32,444,351 | ||||||||||||||||||||
$ | 5.76 | $ | 31.14 | $ | 13.82 | $ | 11.89 | $ | 8.66 | $ | 17.24 | $ | 9.00 | |||||||||||||
$ | — | $ | 85,168,198 | $ | — | $ | 363,715,673 | $ | — | $ | — | $ | 90,911,834 | |||||||||||||
— | 2,788,292 | — | 33,439,610 | — | — | 10,105,860 | ||||||||||||||||||||
$ | — | $ | 30.54 | $ | — | $ | 10.88 | $ | — | $ | — | $ | 9.00 | |||||||||||||
$ | 2,215 | $ | 590,724,355 | $ | 345,952,656 | $ | — | $ | 26,481,140 | $ | 28,194,280 | $ | 389,468,138 | |||||||||||||
384 | 18,936,836 | 24,894,239 | — | 3,068,623 | 1,636,943 | 43,325,984 | ||||||||||||||||||||
$ | 5.77 | $ | 31.19 | $ | 13.90 | $ | — | $ | 8.63 | $ | 17.22 | $ | 8.99 |
53
For the Six Months Ended March 31, 2020 (Unaudited)
Touchstone | ||||||||||||||||||||||||
Anti- | Touchstone | |||||||||||||||||||||||
Benchmark® | Anti- | Touchstone | ||||||||||||||||||||||
Touchstone | International | Benchmark® US | Credit | Touchstone | Touchstone | |||||||||||||||||||
Active Bond | Core Equity | Core Equity | Opportunities II | High Yield | Impact Bond | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
Investment Income | ||||||||||||||||||||||||
Dividends(A) | $ | — | $ | 331,340 | $ | 478,565 | $ | — | $ | — | $ | — | ||||||||||||
Interest | 5,330,881 | — | — | 3,582,592 | 5,828,698 | 4,522,727 | ||||||||||||||||||
Income from securities loaned | 225 | 6,693 | 364 | 816 | 13,862 | 980 | ||||||||||||||||||
Total Investment Income | 5,331,106 | 338,033 | 478,929 | 3,583,408 | 5,842,560 | 4,523,707 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment advisory fees | 648,659 | 83,707 | 48,329 | 306,477 | 525,032 | 568,479 | ||||||||||||||||||
Administration fees | 237,659 | 26,972 | 20,022 | 74,065 | 145,009 | 235,513 | ||||||||||||||||||
Compliance fees and expenses | 1,173 | 1,173 | 1,173 | 1,173 | 1,173 | 1,173 | ||||||||||||||||||
Custody fees | 20,939 | 13,858 | 1,922 | 39,767 | 5,434 | 6,210 | ||||||||||||||||||
Professional fees | 17,517 | 16,404 | 13,314 | 20,914 | 16,406 | 17,680 | ||||||||||||||||||
Transfer Agent fees, Class A | 58,628 | — | — | 2,643 | 11,114 | 4,443 | ||||||||||||||||||
Transfer Agent fees, Class C | 6,692 | — | — | 2,259 | 2,342 | 742 | ||||||||||||||||||
Transfer Agent fees, Class S | — | — | — | — | — | — | ||||||||||||||||||
Transfer Agent fees, Class Y | 44,940 | 10 | 56 | 26,361 | 23,806 | 43,266 | ||||||||||||||||||
Transfer Agent fees, Class Z | — | — | — | — | — | — | ||||||||||||||||||
Transfer Agent fees, Institutional Class | 3,586 | 27 | 21 | 783 | 4,371 | 48,824 | ||||||||||||||||||
Pricing expense | 17,332 | 16,330 | 953 | 13,518 | 13,106 | 8,618 | ||||||||||||||||||
Registration Fees, Class A | 8,318 | — | — | 2,580 | 6,413 | 8,467 | ||||||||||||||||||
Registration Fees, Class C | 7,168 | — | — | 2,784 | 5,158 | 4,478 | ||||||||||||||||||
Registration Fees, Class S | — | — | — | — | — | — | ||||||||||||||||||
Registration Fees, Class Y | 8,262 | 1,859 | 3,311 | 5,903 | 8,039 | 11,861 | ||||||||||||||||||
Registration Fees, Class Z | — | — | — | — | — | — | ||||||||||||||||||
Registration Fees, Institutional Class | 8,304 | 1,859 | 1,866 | 1,879 | 6,015 | 11,876 | ||||||||||||||||||
Dividend expense on securities sold short | — | — | — | 6,525 | — | — | ||||||||||||||||||
Interest expense on securities sold short | — | — | — | 42,454 | — | — | ||||||||||||||||||
Reports to Shareholders, Class A | 4,360 | — | — | 2,506 | 2,828 | 2,535 | ||||||||||||||||||
Reports to Shareholders, Class C | 2,993 | — | — | 2,481 | 2,607 | 2,446 | ||||||||||||||||||
Reports to Shareholders, Class S | — | — | — | — | — | — | ||||||||||||||||||
Reports to Shareholders, Class Y | 4,243 | 2,370 | 2,371 | 3,475 | 2,884 | 3,840 | ||||||||||||||||||
Reports to Shareholders, Class Z | — | — | — | — | — | — | ||||||||||||||||||
Reports to Shareholders, Institutional Class | 2,637 | 2,465 | 2,460 | 2,397 | 2,549 | 3,103 | ||||||||||||||||||
Shareholder servicing fees, Class Z | — | — | — | — | — | — | ||||||||||||||||||
Distribution expenses, Class A | 157,297 | — | — | 8,344 | 18,436 | 14,112 | ||||||||||||||||||
Distribution and shareholder servicing expenses, Class C | 51,983 | — | — | 21,171 | 19,648 | 7,759 | ||||||||||||||||||
Distribution expenses, Class S | — | — | — | — | — | — | ||||||||||||||||||
Trustee fees | 10,951 | 10,951 | 10,951 | 10,951 | 10,951 | 10,951 | ||||||||||||||||||
Other expenses | 44,640 | 6,935 | 6,901 | 13,261 | 18,605 | 15,563 | ||||||||||||||||||
Total Expenses | 1,368,281 | 184,920 | 113,650 | 614,671 | 851,926 | 1,031,939 | ||||||||||||||||||
Fees waived and/or reimbursed by the Advisorand/or Affiliates(B) | (134,476 | ) | (75,165 | ) | (52,853 | ) | (135,119 | ) | (69,154 | ) | (138,418 | ) | ||||||||||||
Fees eligible for recoupment by the Advisor(B) | — | — | — | — | — | — | ||||||||||||||||||
Net Expenses | 1,233,805 | 109,755 | 60,797 | 479,552 | 782,772 | 893,521 | ||||||||||||||||||
Net Investment Income (Loss) | 4,097,301 | 228,278 | 418,132 | 3,103,856 | 5,059,788 | 3,630,186 | ||||||||||||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||||||||||||||
Net realized gains (losses) on investments(C) | 6,219,155 | 620,294 | 493,849 | (1,708,927 | ) | (338,614 | ) | 866,690 | ||||||||||||||||
Net realized gains (losses) on foreign currency transactions | — | (2,484 | ) | — | 3 | — | — | |||||||||||||||||
Net realized losses on futures contracts | (1,166,372 | ) | — | — | — | — | — | |||||||||||||||||
Net realized gains on written options | — | — | — | 27,604 | — | — | ||||||||||||||||||
Net realized losses on securities sold short | — | — | — | (64,427 | ) | — | — | |||||||||||||||||
Net realized losses on swap agreements | — | — | — | (19,793 | ) | — | — | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (15,260,301 | ) | (4,702,520 | ) | (4,171,311 | ) | (14,497,138 | ) | (28,017,134 | ) | (686,303 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | — | 2,185 | — | 2,455 | — | — | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on written options | — | — | — | (104,009 | ) | — | — | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on swap agreements | — | — | — | (31,928 | ) | — | — | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | — | — | — | 323,929 | — | — | ||||||||||||||||||
Net Realized and Unrealized Gains (Losses) onInvestments | (10,207,518 | ) | (4,082,525 | ) | (3,677,462 | ) | (16,072,231 | ) | (28,355,748 | ) | 180,387 | |||||||||||||
Change in Net Assets Resulting from Operations | $ | (6,110,217 | ) | $ | (3,854,247 | ) | $ | (3,259,330 | ) | $ | (12,968,375 | ) | $ | (23,295,960 | ) | $ | 3,810,573 | |||||||
(A) Net of foreign tax withholding of: | $ | 975 | $ | 32,721 | $ | — | $ | — | $ | — | $ | — |
(B)See Note 4 in Notes to Financial Statements.
(C)For the six month ended March 31, 2020, Sands Capital Select Growth Fund and Small Cap Fund had redemptions-in-kind of securities in the amount of $184,776,395, and $4,807,883, respectively. Net realized gains (losses) on investments includes the realized gain on the transactions of $104,451,043, and $1,498,886, respectively, which will not be realized by the Fund for tax purposes.
See accompanying Notes to Financial Statements.
54
Statements of Operations(Unaudited) (Continued)
Touchstone | ||||||||||||||||||||||||||
Touchstone | Touchstone | Touchstone | Ultra Short | |||||||||||||||||||||||
International | Touchstone | Mid Cap | Sands Capital | Touchstone | Touchstone | Duration | ||||||||||||||||||||
ESG Equity | Mid Cap | Value | Select Growth | Small Cap | Small Cap | Fixed Income | ||||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Value Fund | Fund | ||||||||||||||||||||
$ | 226,051 | $ | 16,850,423 | $ | 7,552,598 | $ | 2,254,065 | $ | 672,727 | $ | 737,583 | $ | — | |||||||||||||
— | 8,765 | — | 3,483 | — | — | 14,264,105 | ||||||||||||||||||||
721 | — | 10,700 | 1,172,218 | 325 | 2,284 | — | ||||||||||||||||||||
226,772 | 16,859,188 | 7,563,298 | 3,429,766 | 673,052 | 739,867 | 14,264,105 | ||||||||||||||||||||
108,647 | 7,309,890 | 2,971,036 | 6,279,593 | 321,138 | 388,836 | 1,259,007 | ||||||||||||||||||||
24,237 | 1,464,473 | 574,400 | 1,221,683 | 54,782 | 66,331 | 730,224 | ||||||||||||||||||||
1,173 | 1,174 | 1,173 | 1,173 | 1,173 | 1,173 | 1,166 | ||||||||||||||||||||
8,803 | 15,240 | 8,694 | 15,257 | 4,066 | 4,824 | 20,527 | ||||||||||||||||||||
15,989 | 35,935 | 22,163 | 34,993 | 12,296 | 13,940 | 26,936 | ||||||||||||||||||||
5,410 | 38,160 | 9,120 | 28,416 | 3,156 | 22,984 | 30,079 | ||||||||||||||||||||
3,892 | 30,067 | 2,487 | 18,575 | 2,139 | 823 | 1,488 | ||||||||||||||||||||
— | — | — | — | — | — | 33,396 | ||||||||||||||||||||
9,440 | 800,906 | 409,793 | 425,019 | 17,829 | 13,272 | 112,493 | ||||||||||||||||||||
— | 56,156 | — | 340,995 | — | — | 54,791 | ||||||||||||||||||||
639 | 57,941 | 112,239 | — | 3,868 | 4,337 | 52,665 | ||||||||||||||||||||
407 | 327 | 770 | 312 | 334 | 966 | 20,938 | ||||||||||||||||||||
8,616 | 9,931 | 8,341 | 10,427 | 7,606 | 8,593 | 8,838 | ||||||||||||||||||||
6,439 | 9,644 | 7,513 | 7,994 | 5,194 | 4,403 | 6,730 | ||||||||||||||||||||
— | — | — | — | — | — | 8,227 | ||||||||||||||||||||
9,165 | 43,489 | 13,210 | 30,464 | 9,155 | 8,202 | 14,507 | ||||||||||||||||||||
— | 13,235 | — | 11,543 | — | — | 14,213 | ||||||||||||||||||||
6,389 | 12,078 | 13,361 | — | 8,305 | 3,506 | 9,046 | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
2,718 | 4,623 | 3,464 | 4,560 | 2,616 | 3,640 | 3,580 | ||||||||||||||||||||
2,763 | 5,167 | 3,103 | 4,189 | 2,560 | 2,454 | 2,503 | ||||||||||||||||||||
— | — | — | — | — | — | 6,484 | ||||||||||||||||||||
4,322 | 66,945 | 34,576 | 33,009 | 4,651 | 3,039 | 6,773 | ||||||||||||||||||||
— | 4,877 | — | 17,417 | — | — | 3,795 | ||||||||||||||||||||
7,921 | 4,623 | 18,675 | — | 2,572 | 2,548 | 2,691 | ||||||||||||||||||||
— | 123,414 | — | 529,332 | — | — | 146,788 | ||||||||||||||||||||
12,858 | 94,424 | 13,451 | 113,090 | 4,538 | 28,800 | 87,027 | ||||||||||||||||||||
44,009 | 371,392 | 25,200 | 247,056 | 14,294 | 3,776 | 16,760 | ||||||||||||||||||||
— | — | — | — | — | — | 332,238 | ||||||||||||||||||||
10,951 | 10,951 | 10,951 | 10,951 | 10,951 | 10,951 | 10,933 | ||||||||||||||||||||
12,429 | 37,317 | 28,152 | 429,897 | 22,056 | 23,055 | 42,530 | ||||||||||||||||||||
307,217 | 10,622,379 | 4,291,872 | 9,815,945 | 515,279 | 620,453 | 3,067,373 | ||||||||||||||||||||
(96,688 | ) | (462,698 | ) | (727,270 | ) | (177,249 | ) | (125,433 | ) | (100,224 | ) | (365,807 | ) | |||||||||||||
— | — | — | 18,646 | — | — | — | ||||||||||||||||||||
210,529 | 10,159,681 | 3,564,602 | 9,657,342 | 389,846 | 520,229 | 2,701,566 | ||||||||||||||||||||
16,243 | 6,699,507 | 3,998,696 | (6,227,576 | ) | 283,206 | 219,638 | 11,562,539 | |||||||||||||||||||
(1,050,712 | ) | 35,179,279 | (29,312,215 | ) | 263,461,301 | 2,291,660 | (2,122,314 | ) | 60,993 | |||||||||||||||||
(7,486 | ) | — | — | — | — | — | — | |||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
(3,512,711 | ) | (548,240,811 | ) | (143,856,068 | ) | (241,327,081 | ) | (20,884,611 | ) | (23,442,886 | ) | (31,051,151 | ) | |||||||||||||
(190 | ) | — | — | — | — | — | — | |||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
(4,571,099 | ) | (513,061,532 | ) | (173,168,283 | ) | 22,134,220 | (18,592,951 | ) | (25,565,200 | ) | (30,990,158 | ) | ||||||||||||||
$ | (4,554,856 | ) | $ | (506,362,025 | ) | $ | (169,169,587 | ) | $ | 15,906,644 | $ | (18,309,745 | ) | $ | (25,345,562 | ) | $ | (19,427,619 | ) | |||||||
$ | 35,580 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
55
Statements of Changes in Net Assets
Touchstone | ||||||||||||
Anti-Benchmark® | Touchstone | |||||||||||
Touchstone | International | Anti-Benchmark® | ||||||||||
Active Bond | Core Equity | US Core Equity | ||||||||||
Fund | Fund | Fund | ||||||||||
For the | For the | For the | ||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | |||||||
Ended | Year Ended | Ended | Period Ended | Ended | Period Ended | |||||||
March 31, 2020 | September 30, | March 31, 2020 | September 30, | March 31, 2020 | September 30, | |||||||
(Unaudited) | 2019 | (Unaudited) | 2019(A) | (Unaudited) | 2019(A) | |||||||
From Operations | ||||||||||||
Net investment income | $ | 4,097,301 | $ | 9,339,620 | $ | 228,278 | $ | 769,261 | $ | 418,132 | $ | 484,961 |
Net realized gains (losses) on investments, foreigncurrency transactions, futures contracts, writtenoptions, securities sold short, and swapagreements | 5,052,783 | 4,415,782 | 617,810 | (565,791) | 493,849 | (798,930) | ||||||
Net change in unrealized appreciation (depreciation) on investments, foreign currencytransactions, written options, swap agreements,and securities sold short | (15,260,301) | 17,045,254 | (4,700,335) | 506,545 | (4,171,311) | 1,959,223 | ||||||
Change in Net Assets from Operations | (6,110,217) | 30,800,656 | (3,854,247) | 710,015 | (3,259,330) | 1,645,254 | ||||||
Distributions to Shareholders: | ||||||||||||
Distributed earnings, Class A | (1,547,425) | (3,499,808) | — | — | — | — | ||||||
Distributed earnings, Class C | (106,167) | (409,591) | — | — | — | — | ||||||
Distributed earnings, Class Y | (1,215,746) | (3,505,627) | (102) | (3) | (814) | (14) | ||||||
Distributed earnings, Institutional Class | (1,440,004) | (2,199,194) | (830,890) | (32,746) | (459,211) | (145,890) | ||||||
Total Distributions | (4,309,342) | (9,614,220) | (830,992) | (32,749) | (460,025) | (145,904) | ||||||
Change in Net Assets from Share Transactions(B) | (981,973) | (56,670,856) | 512,701 | 36,035,263 | 542,966 | 25,200,227 | ||||||
Total Increase (Decrease) in Net Assets | (11,401,532) | (35,484,420) | (4,172,538) | 36,712,529 | (3,176,389) | 26,699,577 | ||||||
Net Assets | ||||||||||||
Beginning of period | 326,057,577 | 361,541,997 | 36,712,529 | — | 26,699,577 | — | ||||||
End of period | $ | 314,656,045 | $ | 326,057,577 | $ | 32,539,991 | $ | 36,712,529 | $ | 23,523,188 | $ | 26,699,577 |
(A) | Represents the period from commencement of operations (November 19, 2018) through September 30, 2019. |
(B) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity in pages 60-62. |
(C) | The Fund changed its fiscal year end from June 30 to September 30. |
See accompanying Notes to Financial Statements.
56
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||||||
Credit Opportunities II | High Yield | Impact Bond | ||||||||||||||||||||||||
Fund | Fund | Fund | ||||||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||||||
Six Months | For the Three | For the | Six Months | For the | Six Months | For the | ||||||||||||||||||||
Ended | Months Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | ||||||||||||||||||||
March 31, 2020 | September 30, | June 30, | March 31, 2020 | September 30, | March 31, 2020 | September 30, | ||||||||||||||||||||
(Unaudited) | 2019 (C) | 2019 | (Unaudited) | 2019 | (Unaudited) | 2019 | ||||||||||||||||||||
$ | 3,103,856 | $ | 1,044,350 | $ | 3,098,043 | $ | 5,059,788 | $ | 9,939,041 | $ | 3,630,186 | $ | 7,165,326 | |||||||||||||
(1,765,540 | ) | 116,310 | 263,609 | (338,614 | ) | (1,383,831 | ) | 866,690 | 96,667 | |||||||||||||||||
(14,306,691 | ) | (162,574 | ) | 542,184 | (28,017,134 | ) | 4,822,346 | (686,303 | ) | 19,267,369 | ||||||||||||||||
(12,968,375 | ) | 998,086 | 3,903,836 | (23,295,960 | ) | 13,377,556 | 3,810,573 | 26,529,362 | ||||||||||||||||||
(198,648 | ) | (4,253 | ) | (9,474 | ) | (343,599 | ) | (741,320 | ) | (122,048 | ) | (178,385 | ) | |||||||||||||
(110,517 | ) | (1,918 | ) | (5,380 | ) | (77,590 | ) | (281,592 | ) | (11,173 | ) | (19,278 | ) | |||||||||||||
(1,339,639 | ) | (208,081 | ) | (291,730 | ) | (1,069,465 | ) | (2,491,635 | ) | (1,276,671 | ) | (2,037,305 | ) | |||||||||||||
(1,417,577 | ) | (805,916 | ) | (3,272,520 | ) | (3,544,252 | ) | (6,487,408 | ) | (2,549,062 | ) | (5,556,679 | ) | |||||||||||||
(3,066,381 | ) | (1,020,168 | ) | (3,579,104 | ) | (5,034,906 | ) | (10,001,955 | ) | (3,958,954 | ) | (7,791,647 | ) | |||||||||||||
(15,206,872 | ) | 48,200,441 | 6,580,821 | 14,599,532 | (2,381,934 | ) | 6,099,433 | 42,598,181 | ||||||||||||||||||
(31,241,628 | ) | 48,178,359 | 6,905,553 | (13,731,334 | ) | 993,667 | 5,951,052 | 61,335,896 | ||||||||||||||||||
107,418,455 | 59,240,096 | 52,334,543 | 198,581,868 | 197,588,201 | 314,238,075 | 252,902,179 | ||||||||||||||||||||
$ | 76,176,827 | $ | 107,418,455 | $ | 59,240,096 | $ | 184,850,534 | $ | 198,581,868 | $ | 320,189,127 | $ | 314,238,075 |
57
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||||
International | Mid | Mid Cap | ||||||||||||||||||||||
ESG Equity | Cap | Value | ||||||||||||||||||||||
Fund | Fund | Fund | ||||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | |||||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||||
March 31, 2020 | September 30, | March 31, 2020 | September 30, | March 31, 2020 | September 30, | |||||||||||||||||||
(Unaudited) | 2019 | (Unaudited) | 2019 | (Unaudited) | 2019 | |||||||||||||||||||
From Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | 16,243 | $ | 1,247,628 | $ | 6,699,507 | $ | 4,462,595 | $ | 3,998,696 | $ | 6,617,807 | ||||||||||||
Net realized gains (losses) on investments and foreign currency transactions | (1,058,198 | ) | 8,032,786 | 35,179,279 | 51,721,554 | (29,312,215 | ) | (9,967,857 | ) | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | (3,512,901 | ) | (11,209,391 | ) | (548,240,811 | ) | 137,680,803 | (143,856,068 | ) | 8,396,808 | ||||||||||||||
Change in Net Assets from Operations | (4,554,856 | ) | (1,928,977 | ) | (506,362,025 | ) | 193,864,952 | (169,169,587 | ) | 5,046,758 | ||||||||||||||
Distributions to Shareholders: | ||||||||||||||||||||||||
Distributed earnings, Class A | (1,975,668 | ) | (1,148,127 | ) | (2,136,247 | ) | (1,161,949 | ) | (28,877 | ) | (677,036 | ) | ||||||||||||
Distributed earnings, Class C | (1,710,548 | ) | (1,711,118 | ) | (1,766,350 | ) | (1,924,706 | ) | — | (290,312 | ) | |||||||||||||
Distributed earnings, Class S | — | — | — | — | — | — | ||||||||||||||||||
Distributed earnings, Class Y | (2,959,639 | ) | (5,288,924 | ) | (40,650,895 | ) | (25,404,765 | ) | (1,238,275 | ) | (15,618,865 | ) | ||||||||||||
Distributed earnings, Class Z | — | — | (3,135,029 | ) | (686,312 | ) | — | — | ||||||||||||||||
Distributed earnings, Institutional Class | (537 | ) | (4 | ) | (9,162,482 | ) | (4,388,852 | ) | (2,217,009 | ) | �� | (22,128,826 | ) | |||||||||||
Total Distributions | (6,646,392 | ) | (8,148,173 | ) | (56,851,003 | ) | (33,566,584 | ) | (3,484,161 | ) | (38,715,039 | ) | ||||||||||||
Change in Net Assets from Share Transactions(A) | (2,092,811 | ) | (39,966,666 | ) | 1,195,222,874 | 513,980,291 | 22,463,071 | (4,113,450 | ) | |||||||||||||||
Total Increase (Decrease) in Net Assets | (13,294,059 | ) | (50,043,816 | ) | 632,009,846 | 674,278,659 | (150,190,677 | ) | (37,781,731 | ) | ||||||||||||||
Net Assets | ||||||||||||||||||||||||
Beginning of period | 37,580,454 | 87,624,270 | 1,629,704,144 | 955,425,485 | 755,849,131 | 793,630,862 | ||||||||||||||||||
End of period | $ | 24,286,395 | $ | 37,580,454 | $ | 2,261,713,990 | $ | 1,629,704,144 | $ | 605,658,454 | $ | 755,849,131 |
(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 63-66.
See accompanying Notes to Financial Statements.
58
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||||||||||||||||
Sands Capital | Small | Small | Ultra Short | |||||||||||||||||||||||||||
Select Growth | Cap | Cap Value | Duration Fixed | |||||||||||||||||||||||||||
Fund | Fund | Fund | Income Fund | |||||||||||||||||||||||||||
For the | For the | For the | For the | |||||||||||||||||||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | Six Months | For the | |||||||||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||||||||
March 31, 2020 | September 30, | March 31, 2020 | September 30, | March 31, 2020 | September 30, | March 31, 2020 | September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | (Unaudited) | 2019 | (Unaudited) | 2019 | (Unaudited) | 2019 | |||||||||||||||||||||||
$ | (6,227,576 | ) | $ | (19,878,672 | ) | $ | 283,206 | $ | 238,680 | $ | 219,638 | $ | 410,097 | $ | 11,562,539 | $ | 24,702,944 | |||||||||||||
263,461,301 | 563,874,003 | 2,291,660 | 23,464,145 | (2,122,314 | ) | (13,330,857 | ) | 60,993 | (258,992 | ) | ||||||||||||||||||||
(241,327,081 | ) | (636,787,029 | ) | (20,884,611 | ) | (30,663,731 | ) | (23,442,886 | ) | (3,290,945 | ) | (31,051,151 | ) | 4,685,231 | ||||||||||||||||
15,906,644 | (92,791,698 | ) | (18,309,745 | ) | (6,960,906 | ) | (25,345,562 | ) | (16,211,705 | ) | (19,427,619 | ) | 29,129,183 | |||||||||||||||||
(15,437,103 | ) | (21,290,699 | ) | (330,913 | ) | (1,165,908 | ) | (60,356 | ) | (5,072,643 | ) | (794,652 | ) | (1,822,159 | ) | |||||||||||||||
(9,285,031 | ) | (17,571,431 | ) | (285,467 | ) | (1,317,244 | ) | (581 | ) | (85,491 | ) | (39,412 | ) | (93,157 | ) | |||||||||||||||
— | — | — | — | — | — | (1,349,434 | ) | (3,244,399 | ) | |||||||||||||||||||||
(175,614,818 | ) | (260,948,268 | ) | (3,029,452 | ) | (8,692,472 | ) | (112,562 | ) | (2,377,087 | ) | (3,764,841 | ) | (7,334,957 | ) | |||||||||||||||
(75,190,411 | ) | (122,462,519 | ) | — | — | — | — | (1,345,340 | ) | (4,027,821 | ) | |||||||||||||||||||
— | — | (3,206,417 | ) | (12,411,469 | ) | (175,021 | ) | (2,239,906 | ) | (4,961,825 | ) | (8,648,582 | ) | |||||||||||||||||
(275,527,363 | ) | (422,272,917 | ) | (6,852,249 | ) | (23,587,093 | ) | (348,520 | ) | (9,775,127 | ) | (12,255,504 | ) | (25,171,075 | ) | |||||||||||||||
27,650,081 | (142,003,990 | ) | 6,136,312 | (50,241,132 | ) | 612,576 | (39,026,770 | ) | (6,869,414 | ) | 79,576,816 | |||||||||||||||||||
(231,970,638 | ) | (657,068,605 | ) | (19,025,682 | ) | (80,789,131 | ) | (25,081,506 | ) | (65,013,602 | ) | (38,552,537 | ) | 83,534,924 | ||||||||||||||||
1,688,353,329 | 2,345,421,934 | 78,505,500 | 159,294,631 | 90,201,947 | 155,215,549 | 1,008,589,898 | 925,054,974 | |||||||||||||||||||||||
$ | 1,456,382,691 | $ | 1,688,353,329 | $ | 59,479,818 | $ | 78,505,500 | $ | 65,120,441 | $ | 90,201,947 | $ | 970,037,361 | $ | 1,008,589,898 |
59
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone | Touchstone Anti-Benchmark® | |||||||||||||||||||||||||||||||
Active Bond Fund | International Core Equity Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | For the Period | ||||||||||||||||||||||||||||||
Ended | For the Year | Ended | Ended | |||||||||||||||||||||||||||||
March 31, 2020 | Ended | March 31, 2020 | September 30, | |||||||||||||||||||||||||||||
(Unaudited) | September 30, 2019 | (Unaudited) | 2019(A) | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 636,849 | $ | 6,789,267 | 1,422,056 | $ | 14,626,760 | — | $ | — | — | $ | — | ||||||||||||||||||||
Proceeds from Shares issued in connection with merger(C) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 119,452 | 1,272,529 | 278,425 | 2,850,526 | — | — | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (1,183,644 | ) | (12,614,691 | ) | (3,059,275 | ) | (31,179,556 | ) | — | — | — | — | ||||||||||||||||||||
Change from Class A Share Transactions | (427,343 | ) | (4,552,895 | ) | (1,358,794 | ) | (13,702,270 | ) | — | — | — | — | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 64,782 | 635,637 | 73,331 | 672,601 | — | — | — | — | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with merger(C) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 9,179 | 89,871 | 37,388 | 350,078 | — | — | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (257,718 | ) | (2,531,473 | ) | (1,493,575 | ) | (14,106,292 | ) | — | — | — | — | ||||||||||||||||||||
Change from Class C Share Transactions | (183,757 | ) | (1,805,965 | ) | (1,382,856 | ) | (13,083,613 | ) | — | — | — | — | ||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,204,708 | 12,944,785 | 3,486,649 | 35,461,232 | 3,334 | 32,070 | 250 | 2,500 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with merger(C) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 99,181 | 1,055,866 | 302,711 | 3,080,375 | 9 | 102 | — | 3 | ||||||||||||||||||||||||
Cost of Shares redeemed | (1,556,713 | ) | (16,587,885) | (11,913,916) | (120,959,495 | ) | — | — | — | — | ||||||||||||||||||||||
Change from Class Y Share Transactions | (252,824 | ) | (2,587,234 | ) | (8,124,556 | ) | (82,417,888 | ) | 3,343 | 32,172 | 250 | 2,503 | ||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 1,435,664 | 15,427,820 | 8,994,600 | 91,572,024 | 76,823 | 682,111 | 3,689,304 | 36,945,243 | ||||||||||||||||||||||||
Proceeds from Shares issued in connection with merger(C) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 123,779 | 1,317,592 | 186,387 | 1,928,015 | 77,436 | 830,890 | 3,480 | 32,746 | ||||||||||||||||||||||||
Cost of Shares redeemed | (831,100 | ) | (8,781,291 | ) | (4,013,015 | ) | (40,967,124 | ) | (98,005 | ) | (1,032,472 | ) | (94,015 | ) | (945,229 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | 728,343 | 7,964,121 | 5,167,972 | 52,532,915 | 56,254 | 480,529 | 3,598,769 | 36,032,760 | ||||||||||||||||||||||||
Change from Share Transactions | (135,581 | ) | $ | (981,973 | ) | (5,698,234 | ) | $ | (56,670,856 | ) | 59,597 | $ | 512,701 | 3,599,019 | $ | 36,035,263 |
(A)Represents the period from commencement of operations (November 19, 2018) through September 30, 2019.
(B)The Fund changed its fiscal year end from June 30 to September 30.
(C)See Note 9 in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
60
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
Touchstone Anti-Benchmark® | Touchstone Credit | |||||||||||||||||||||||||||||||||||||
US Core Equity Fund | Opportunities II Fund | |||||||||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | For the Three | ||||||||||||||||||||||||||||||||||||
Ended | For the Period | Ended | Months Ended | For the Year | ||||||||||||||||||||||||||||||||||
March 31, 2020 | Ended | March 31, 2020 | September 30, | Ended | ||||||||||||||||||||||||||||||||||
(Unaudited) | September 30, 2019(A) | (Unaudited) | 2019 (B) | June 30, 2019 | ||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||||||
— | $ | — | — | $ | — | 107,785 | $ | 1,030,152 | 13,949 | $ | 139,772 | 16,091 | $ | 158,403 | ||||||||||||||||||||||||
— | — | — | — | — | — | 698,322 | 6,996,031 | — | — | |||||||||||||||||||||||||||||
— | — | — | — | 20,455 | 195,780 | 388 | 3,835 | 806 | 7,849 | |||||||||||||||||||||||||||||
— | — | — | — | (253,798 | ) | (2,492,023 | ) | (13,832 | ) | (138,793 | ) | (9,561 | ) | (94,507 | ) | |||||||||||||||||||||||
— | — | — | — | (125,558 | ) | (1,266,091 | ) | 698,827 | 7,000,845 | 7,336 | 71,745 | |||||||||||||||||||||||||||
— | — | — | — | 22,613 | 219,266 | 8,188 | 79,994 | 12,217 | 121,216 | |||||||||||||||||||||||||||||
— | — | — | — | — | — | 473,084 | 4,605,015 | — | — | |||||||||||||||||||||||||||||
— | — | — | — | 11,786 | 109,938 | 193 | 1,918 | 554 | 5,381 | |||||||||||||||||||||||||||||
— | — | — | — | (100,319 | ) | (941,429 | ) | (28,936 | ) | (282,404 | ) | (2,267 | ) | (22,317 | ) | |||||||||||||||||||||||
— | — | — | — | (65,920 | ) | (612,225 | ) | 452,529 | 4,404,523 | 10,504 | 104,280 | |||||||||||||||||||||||||||
7,609 | 86,539 | 4,904 | 51,823 | 1,980,015 | 18,955,230 | 299,398 | 2,999,589 | 1,205,335 | 11,677,641 | |||||||||||||||||||||||||||||
— | — | — | — | — | — | 3,543,051 | 36,187,744 | — | — | |||||||||||||||||||||||||||||
72 | 814 | 1 | 14 | 136,985 | 1,337,543 | 21,061 | 208,081 | 29,642 | 291,729 | |||||||||||||||||||||||||||||
(330 | ) | (3,598 | ) | — | — | (3,232,973 | ) | (30,805,974 | ) | (328,931 | ) | (3,317,098 | ) | (138,508 | ) | (1,372,382 | ) | |||||||||||||||||||||
7,351 | 83,755 | 4,905 | 51,837 | (1,115,973 | ) | (10,513,201 | ) | 3,534,579 | 36,078,316 | 1,096,469 | 10,596,988 | |||||||||||||||||||||||||||
— | — | 2,500,250 | 25,002,500 | 98,420 | 969,186 | 28,432 | 284,408 | 451,288 | 4,456,115 | |||||||||||||||||||||||||||||
— | — | — | — | — | — | (44,528 | ) | 911,375 | — | — | ||||||||||||||||||||||||||||
40,746 | 459,211 | 16,156 | 145,890 | 146,242 | 1,414,456 | 81,570 | 805,916 | 337,575 | 3,272,520 | |||||||||||||||||||||||||||||
— | — | — | — | (513,361 | ) | (5,198,997 | ) | (127,763 | ) | (1,284,942 | ) | (1,206,092 | ) | (11,920,827 | ) | |||||||||||||||||||||||
40,746 | 459,211 | 2,516,406 | 25,148,390 | (268,699 | ) | (2,815,355 | ) | (62,289 | ) | 716,757 | (417,229 | ) | (4,192,192 | ) | ||||||||||||||||||||||||
48,097 | $ | 542,966 | 2,521,311 | $ | 25,200,227 | (1,576,150 | ) | $ | (15,206,872 | ) | 4,623,646 | $ | 48,200,441 | 697,080 | $ | 6,580,821 |
61
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone | Touchstone | |||||||||||||||||||||||||||||||
High Yield Fund | Impact Bond Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||||
March 31, 2020 | Ended | March 31, 2020 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | September 30, 2019 | (Unaudited) | September 30, 2019 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 597,815 | $ | 4,860,303 | 1,662,137 | $ | 13,446,109 | 567,755 | $ | 5,939,443 | 555,411 | $ | 5,610,755 | ||||||||||||||||||||
Reinvestment of distributions | 37,624 | 301,571 | 79,556 | 645,518 | 9,050 | 94,596 | 13,537 | 136,250 | ||||||||||||||||||||||||
Cost of Shares redeemed | (697,255 | ) | (5,656,893 | ) | (1,506,488 | ) | (12,307,465 | ) | (134,605 | ) | (1,403,016 | ) | (186,508 | ) | (1,853,711 | ) | ||||||||||||||||
Change from Class A Share Transactions | (61,816 | ) | (495,019 | ) | 235,205 | 1,784,162 | 442,200 | 4,631,023 | 382,440 | 3,893,294 | ||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 18,952 | 154,495 | 123,518 | 996,259 | 35,440 | 370,212 | 74,026 | 748,774 | ||||||||||||||||||||||||
Reinvestment of distributions | 8,512 | 68,296 | 29,572 | 237,691 | 805 | 8,391 | 1,500 | 15,058 | ||||||||||||||||||||||||
Cost of Shares redeemed | (193,139 | ) | (1,508,423 | ) | (764,130 | ) | (6,155,763 | ) | (18,892 | ) | (196,284 | ) | (45,500 | ) | (448,699 | ) | ||||||||||||||||
Change from Class C Share Transactions | (165,675 | ) | (1,285,632 | ) | (611,040 | ) | (4,921,813 | ) | 17,353 | 182,319 | 30,026 | 315,133 | ||||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 475,115 | 3,924,037 | 1,023,469 | 8,554,837 | 3,190,108 | 33,442,988 | 5,604,926 | 56,349,675 | ||||||||||||||||||||||||
Reinvestment of distributions | 125,116 | 1,032,490 | 287,205 | 2,388,747 | 109,108 | 1,141,574 | 188,739 | 1,901,861 | ||||||||||||||||||||||||
Cost of Shares redeemed | (984,356 | ) | (7,971,291 | ) | (3,800,172 | ) | (31,284,845 | ) | (1,638,697 | ) | (17,256,919 | ) | (2,299,908 | ) | (23,117,754 | ) | ||||||||||||||||
Change from Class Y Share Transactions | (384,125 | ) | (3,014,764 | ) | (2,489,498 | ) | (20,341,261 | ) | 1,660,519 | 17,327,643 | 3,493,757 | 35,133,782 | ||||||||||||||||||||
Class Z | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Change from Class Z Share Transactions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 4,313,008 | 33,489,846 | 3,302,732 | 27,657,744 | 3,016,158 | 31,535,770 | 8,802,855 | 88,365,326 | ||||||||||||||||||||||||
Reinvestment of distributions | 428,372 | 3,526,630 | 775,859 | 6,475,123 | 208,729 | 2,183,193 | 444,828 | 4,472,905 | ||||||||||||||||||||||||
Cost of Shares redeemed | (2,159,793 | ) | (17,621,529 | ) | (1,560,919 | ) | (13,035,889 | ) | (4,725,836 | ) | (49,760,515 | ) | (8,961,385 | ) | (89,582,259 | ) | ||||||||||||||||
Change from Institutional Class Share Transactions | 2,581,587 | 19,394,947 | 2,517,672 | 21,096,978 | (1,500,949 | ) | (16,041,552 | ) | 286,298 | 3,255,972 | ||||||||||||||||||||||
Change from Share Transactions | 1,969,971 | $ | 14,599,532 | (347,661 | ) | $ | (2,381,934 | ) | 619,123 | $ | 6,099,433 | 4,192,521 | $ | 42,598,181 |
See accompanying Notes to Financial Statements.
62
Statements of Changes in Net Assets - Capital Stock Activity(Continued)
Touchstone International | Touchstone | |||||||||||||||||||||||||||||
ESG Equity Fund | Mid Cap Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2020 | Ended | March 31, 2020 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2019 | (Unaudited) | September 30, 2019 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
431,026 | $ | 3,218,018 | 406,511 | $ | 3,371,271 | 924,287 | $ | 35,560,370 | 1,001,545 | $ | 35,758,307 | |||||||||||||||||||
254,450 | 1,876,151 | 134,546 | 1,090,024 | 47,648 | 1,878,215 | 34,482 | 1,060,010 | |||||||||||||||||||||||
(406,258 | ) | (3,042,523 | ) | (575,998 | ) | (4,853,121 | ) | (394,285 | ) | (14,331,864 | ) | (499,397 | ) | (16,769,979 | ) | |||||||||||||||
279,218 | 2,051,646 | (34,941 | ) | (391,826 | ) | 577,650 | 23,106,721 | 536,630 | 20,048,338 | |||||||||||||||||||||
13,260 | 97,982 | 44,386 | 367,915 | 579,672 | 21,144,202 | 509,902 | 16,808,427 | |||||||||||||||||||||||
215,820 | 1,584,118 | 195,625 | 1,576,867 | 39,569 | 1,450,587 | 56,462 | 1,632,881 | |||||||||||||||||||||||
(542,458 | ) | (4,297,518 | ) | (1,013,055 | ) | (8,342,686 | ) | (299,735 | ) | (10,276,092 | ) | (431,317 | ) | (13,750,573 | ) | |||||||||||||||
(313,378 | ) | (2,615,418 | ) | (773,044 | ) | (6,397,904 | ) | 319,506 | 12,318,697 | 135,047 | 4,690,735 | |||||||||||||||||||
160,088 | 1,223,444 | 1,535,494 | 12,744,601 | 22,687,549 | 838,564,860 | 15,735,498 | 553,641,720 | |||||||||||||||||||||||
374,707 | 2,755,636 | 615,371 | 4,964,614 | 895,607 | 35,746,662 | 728,248 | 22,612,002 | |||||||||||||||||||||||
(720,760 | ) | (5,508,657 | ) | (6,077,399 | ) | (50,888,655 | ) | (7,144,976 | ) | (255,080,226 | ) | (6,276,827 | ) | (218,223,100 | ) | |||||||||||||||
(185,965 | ) | (1,529,577 | ) | (3,926,534 | ) | (33,179,440 | ) | 16,438,180 | 619,231,296 | 10,186,919 | 358,030,622 | |||||||||||||||||||
— | — | — | — | 2,101,698 | 82,014,495 | 1,481,414 | 53,759,389 | |||||||||||||||||||||||
— | — | — | — | 79,863 | 3,127,420 | 22,445 | 685,676 | |||||||||||||||||||||||
— | — | — | — | (989,722 | ) | (34,515,907 | ) | (495,884 | ) | (18,061,299 | ) | |||||||||||||||||||
— | — | — | — | 1,191,839 | 50,626,008 | 1,007,975 | 36,383,766 | |||||||||||||||||||||||
— | — | 310 | 2,500 | 14,647,698 | 563,440,279 | 3,017,918 | 110,621,171 | |||||||||||||||||||||||
73 | 538 | 1 | 4 | 187,288 | 7,491,088 | 107,708 | 3,349,524 | |||||||||||||||||||||||
— | — | — | — | (2,125,656 | ) | (80,991,215 | ) | (552,634 | ) | (19,143,865 | ) | |||||||||||||||||||
73 | 538 | 311 | 2,504 | 12,709,330 | 489,940,152 | 2,572,992 | 94,826,830 | |||||||||||||||||||||||
(220,052 | ) | $ | (2,092,811 | ) | (4,734,208 | ) | $ | (39,966,666 | ) | 31,236,505 | $ | 1,195,222,874 | 14,439,563 | $ | 513,980,291 |
63
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Mid Cap | Touchstone Sands Capital | |||||||||||||||||||||||||||||||
Value Fund | Select Growth Fund | |||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||||
March 31, 2020 | Ended | March 31, 2020 | Ended | |||||||||||||||||||||||||||||
(Unaudited) | September 30, 2019 | (Unaudited) | September 30, 2019 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 89,023 | $ | 1,557,972 | 149,145 | $ | 2,505,536 | 995,130 | $ | 12,059,340 | 2,882,491 | $ | 37,466,635 | ||||||||||||||||||||
Reinvestment of distributions | 1,479 | 24,256 | 35,492 | 573,460 | 937,160 | 10,739,861 | 1,241,615 | 14,489,643 | ||||||||||||||||||||||||
Cost of Shares redeemed | (115,409 | ) | (2,001,431 | ) | (498,273 | ) | (8,493,315 | ) | (1,275,786 | ) | (15,781,732 | ) | (2,820,138 | ) | (36,415,606 | ) | ||||||||||||||||
Change from Class A Share Transactions | (24,907 | ) | (419,203 | ) | (313,636 | ) | (5,414,319 | ) | 656,504 | 7,017,469 | 1,303,968 | 15,540,672 | ||||||||||||||||||||
Class C | �� | |||||||||||||||||||||||||||||||
Proceeds from Shares issued | 8,251 | 140,447 | 63,277 | 969,925 | 543,864 | 5,537,240 | 800,446 | 8,970,545 | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | 17,876 | 279,049 | 829,670 | 8,089,277 | 1,491,943 | 15,381,930 | ||||||||||||||||||||||||
Cost of Shares redeemed | (57,781 | ) | (944,170 | ) | (197,621 | ) | (3,252,689 | ) | (1,186,738 | ) | (12,761,024 | ) | (2,910,652 | ) | (33,616,304 | ) | ||||||||||||||||
Change from Class C Share Transactions | (49,530 | ) | (803,723 | ) | (116,468 | ) | (2,003,715 | ) | 186,796 | 865,493 | (618,263 | ) | (9,263,829 | ) | ||||||||||||||||||
Class Y | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 4,013,194 | 58,471,299 | 4,148,451 | 71,207,884 | 24,731,563 | 328,350,395 | 47,984,180 | 671,020,656 | ||||||||||||||||||||||||
Reinvestment of distributions | 75,491 | 1,217,700 | 936,465 | 15,250,844 | 12,162,721 | 152,642,157 | 17,298,614 | 216,916,626 | ||||||||||||||||||||||||
Cost of Shares redeemed | (2,046,483 | ) | (35,253,652 | ) | (7,111,343 | ) | (120,504,725 | ) | (32,440,336 | ) | (435,982,535 | ) | (71,274,284 | ) | (1,025,920,882 | ) | ||||||||||||||||
Change from Class Y Share Transactions | 2,042,202 | 24,435,347 | (2,026,427 | ) | (34,045,997 | ) | 4,453,948 | 45,010,017 | (5,991,490 | ) | (137,983,600 | ) | ||||||||||||||||||||
Class Z | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | — | — | — | — | 1,309,383 | 15,050,998 | 3,582,260 | 47,836,860 | ||||||||||||||||||||||||
Reinvestment of distributions | — | — | — | — | 6,518,393 | 74,831,157 | 10,414,025 | 121,739,953 | ||||||||||||||||||||||||
Cost of Shares redeemed | — | — | — | — | (9,325,712 | ) | (115,125,053 | ) | (13,484,486 | ) | (179,874,046 | ) | ||||||||||||||||||||
Change from Class Z Share Transactions | — | — | — | — | (1,497,936 | ) | (25,242,898 | ) | 511,799 | (10,297,233 | ) | |||||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||||||||||
Proceeds from Shares issued | 6,070,748 | 105,884,447 | 10,425,351 | 178,428,195 | — | — | — | — | ||||||||||||||||||||||||
Reinvestment of distributions | 123,265 | 2,030,251 | 1,113,293 | 18,280,984 | — | — | — | — | ||||||||||||||||||||||||
Cost of Shares redeemed | (6,350,803 | ) | (108,664,048 | ) | (9,324,209 | ) | (159,358,598 | ) | — | — | — | — | ||||||||||||||||||||
Change from Institutional Class Share Transactions | (156,790 | ) | (749,350 | ) | 2,214,435 | 37,350,581 | — | — | — | — | ||||||||||||||||||||||
Change from Share Transactions | 1,810,975 | $ | 22,463,071 | (242,096 | ) | $ | (4,113,450 | ) | 3,799,312 | $ | 27,650,081 | (4,793,986 | ) | $ | (142,003,990 | ) |
See accompanying Notes to Financial Statements.
64
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone | Touchstone | |||||||||||||||||||||||||||||
Small Cap Fund | Small Cap Value Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2020 | Ended | March 31, 2020 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2019 | (Unaudited) | September 30, 2019 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
30,276 | $ | 360,334 | 38,055 | $ | 472,167 | 6,021 | $ | 134,638 | 195,449 | $ | 4,249,270 | |||||||||||||||||||
26,489 | 310,982 | 101,878 | 1,089,083 | 2,244 | 58,275 | 209,490 | 4,705,373 | |||||||||||||||||||||||
(49,839 | ) | (562,937 | ) | (337,532 | ) | (4,407,142 | ) | (135,445 | ) | (3,193,420 | ) | (2,367,137 | ) | (51,823,595 | ) | |||||||||||||||
6,926 | 108,379 | (197,599 | ) | (2,845,892 | ) | (127,180 | ) | (3,000,507 | ) | (1,962,198 | ) | (42,868,952 | ) | |||||||||||||||||
10,695 | 112,816 | 20,731 | 207,669 | 1,488 | 26,070 | 8,034 | 177,715 | |||||||||||||||||||||||
23,637 | 254,101 | 114,175 | 1,134,906 | 16 | 399 | 3,012 | 65,850 | |||||||||||||||||||||||
(111,012 | ) | (1,170,828 | ) | (249,806 | ) | (2,631,113 | ) | (2,405 | ) | (56,531 | ) | (29,729 | ) | (680,560 | ) | |||||||||||||||
(76,680 | ) | (803,911 | ) | (114,900 | ) | (1,288,538 | ) | (901 | ) | (30,062 | ) | (18,683 | ) | (436,995 | ) | |||||||||||||||
775,390 | 7,402,412 | 810,114 | 9,668,277 | 303,170 | 7,529,602 | 328,553 | 7,538,534 | |||||||||||||||||||||||
244,189 | 2,930,498 | 750,085 | 8,160,920 | 4,504 | 110,562 | 102,758 | 2,312,572 | |||||||||||||||||||||||
(465,334 | ) | (5,220,399 | ) | (1,917,077 | ) | (24,260,072 | ) | (120,447 | ) | (2,763,958 | ) | (874,577 | ) | (20,250,772 | ) | |||||||||||||||
554,245 | 5,112,511 | (356,878 | ) | (6,430,875 | ) | 187,227 | 4,876,206 | (443,266 | ) | (10,399,666 | ) | |||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
583,648 | 6,700,192 | 2,076,783 | 25,606,948 | 233,406 | 5,359,700 | 904,996 | 21,393,137 | |||||||||||||||||||||||
265,143 | 3,174,041 | 934,025 | 10,124,830 | 1,933 | 46,231 | 29,736 | 668,672 | |||||||||||||||||||||||
(702,610 | ) | (8,154,900 | ) | (5,797,319 | ) | (75,407,605 | ) | (266,848 | ) | (6,638,992 | ) | (314,310 | ) | (7,382,966 | ) | |||||||||||||||
146,181 | 1,719,333 | (2,786,511 | ) | (39,675,827 | ) | (31,509 | ) | (1,233,061 | ) | 620,422 | 14,678,843 | |||||||||||||||||||
630,672 | $ | 6,136,312 | (3,455,888 | ) | $ | (50,241,132 | ) | 27,637 | $ | 612,576 | (1,803,725 | ) | $ | (39,026,770 | ) |
65
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Ultra Short | ||||||||||||||||
Duration Fixed Income Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2020 | Ended | |||||||||||||||
(Unaudited) | September 30, 2019 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 1,064,133 | $ | 9,834,143 | 1,561,834 | $ | 14,461,350 | ||||||||||
Reinvestment of distributions | 78,014 | 721,020 | 178,237 | 1,651,342 | ||||||||||||
Cost of Shares redeemed | (1,615,841 | ) | (14,883,849 | ) | (2,308,007 | ) | (21,370,670 | ) | ||||||||
Change from Class A Share Transactions | (473,694 | ) | (4,328,686 | ) | (567,936 | ) | (5,257,978 | ) | ||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 500,000 | 4,636,118 | 469,828 | 4,349,002 | ||||||||||||
Reinvestment of distributions | 2,790 | 25,789 | 7,701 | 71,373 | ||||||||||||
Cost of Shares redeemed | (377,587 | ) | (3,487,381 | ) | (508,717 | ) | (4,714,076 | ) | ||||||||
Change from Class C Share Transactions | 125,203 | 1,174,526 | (31,188 | ) | (293,701 | ) | ||||||||||
Class S | ||||||||||||||||
Proceeds from Shares issued | 2,347,945 | 21,720,974 | 6,326,264 | 58,524,099 | ||||||||||||
Reinvestment of distributions | 140,886 | 1,301,848 | 326,447 | 3,023,746 | ||||||||||||
Cost of Shares redeemed | (2,935,603 | ) | (27,170,271 | ) | (7,401,049 | ) | (68,520,143 | ) | ||||||||
Change from Class S Share Transactions | (446,772 | ) | (4,147,449 | ) | (748,338 | ) | (6,972,298 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 8,248,507 | 76,229,843 | 19,911,778 | 184,399,781 | ||||||||||||
Reinvestment of distributions | 320,419 | 2,960,819 | 616,968 | 5,717,131 | ||||||||||||
Cost of Shares redeemed | (9,078,240 | ) | (83,845,390 | ) | (15,973,962 | ) | (147,823,922 | ) | ||||||||
Change from Class Y Share Transactions | (509,314 | ) | (4,654,728 | ) | 4,554,784 | 42,292,990 | ||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | 1,050,128 | 9,724,402 | 8,443,969 | 78,135,460 | ||||||||||||
Reinvestment of distributions | 142,748 | 1,320,015 | 416,624 | 3,860,213 | ||||||||||||
Cost of Shares redeemed | (4,893,215 | ) | (45,193,207 | ) | (12,781,112 | ) | (118,395,872 | ) | ||||||||
Change from Class Z Share Transactions | (3,700,339 | ) | (34,148,790 | ) | (3,920,519 | ) | (36,400,199 | ) | ||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 10,275,783 | 95,185,408 | 27,100,680 | 250,714,052 | ||||||||||||
Reinvestment of distributions | 513,288 | 4,736,999 | 873,331 | 8,086,264 | ||||||||||||
Cost of Shares redeemed | (6,582,884 | ) | (60,686,694 | ) | (18,658,124 | ) | (172,592,314 | ) | ||||||||
Change from Institutional Class Share Transactions | 4,206,187 | 39,235,713 | 9,315,887 | 86,208,002 | ||||||||||||
Change from Share Transactions | (798,729 | ) | $ | (6,869,414 | ) | 8,602,690 | $ | 79,576,816 |
See accompanying Notes to Financial Statements.
66
Touchstone Active Bond Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.68 | $ | 10.01 | $ | 10.47 | $ | 10.59 | $ | 10.20 | $ | 10.45 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.27 | 0.23 | 0.24 | 0.26 | 0.26 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.32 | ) | 0.68 | (0.43 | ) | (0.11 | ) | 0.43 | (0.23 | ) | ||||||||||||||
Total from investment operations | (0.20 | ) | 0.95 | (0.20 | ) | 0.13 | 0.69 | 0.03 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.28 | ) | (0.26 | ) | (0.25 | ) | (0.30 | ) | (0.28 | ) | ||||||||||||
Realized capital gains | — | — | — | (A) | — | — | — | |||||||||||||||||
Total distributions | (0.13 | ) | (0.28 | ) | (0.26 | ) | (0.25 | ) | (0.30 | ) | (0.28 | ) | ||||||||||||
Net asset value at end of period | $ | 10.35 | $ | 10.68 | $ | 10.01 | $ | 10.47 | $ | 10.59 | $ | 10.20 | ||||||||||||
Total return(B) | (1.88 | %)(C) | 9.68 | % | (1.87 | %) | 1.26 | % | 6.90 | % | 0.24 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 119,116 | $ | 127,502 | $ | 133,083 | $ | 22,117 | $ | 25,324 | $ | 29,135 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.90 | %(D) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | ||||||||||||
Gross expenses | 0.97 | %(D) | 1.00 | % | 0.97 | % | 1.18 | % | 1.19 | % | 1.19 | % | ||||||||||||
Net investment income | 2.35 | %(D) | 2.68 | % | 2.34 | % | 2.33 | % | 2.52 | % | 2.50 | % | ||||||||||||
Portfolio turnover rate | 174 | %(C) | 235 | % | 448 | %(E) | 496 | % | 590 | % | 349 | % |
Touchstone Active Bond Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.82 | $ | 9.23 | $ | 9.68 | $ | 9.82 | $ | 9.48 | $ | 9.73 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.03 | 0.12 | 0.20 | 0.14 | 0.16 | 0.17 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.24 | ) | 0.68 | (0.46 | ) | (0.10 | ) | 0.41 | (0.21 | ) | ||||||||||||||
Total from investment operations | (0.21 | ) | 0.80 | (0.26 | ) | 0.04 | 0.57 | (0.04 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.21 | ) | (0.19 | ) | (0.18 | ) | (0.23 | ) | (0.21 | ) | ||||||||||||
Realized capital gains | — | — | — | (A) | — | — | — | |||||||||||||||||
Total distributions | (0.10 | ) | (0.21 | ) | (0.19 | ) | (0.18 | ) | (0.23 | ) | (0.21 | ) | ||||||||||||
Net asset value at end of period | $ | 9.51 | $ | 9.82 | $ | 9.23 | $ | 9.68 | $ | 9.82 | $ | 9.48 | ||||||||||||
Total return(B) | (2.18 | %)(C) | 8.83 | % | (2.64 | %) | 0.52 | % | 6.03 | % | (0.47 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 9,617 | $ | 11,743 | $ | 23,807 | $ | 4,642 | $ | 6,513 | $ | 6,946 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.65 | %(D) | 1.65 | % | 1.65 | % | 1.65 | % | 1.65 | % | 1.65 | % | ||||||||||||
Gross expenses | 1.93 | %(D) | 1.85 | % | 1.79 | % | 2.18 | % | 2.09 | % | 2.06 | % | ||||||||||||
Net investment income | 1.60 | %(D) | 1.93 | % | 1.59 | % | 1.58 | % | 1.77 | % | 1.75 | % | ||||||||||||
Portfolio turnover rate | 174 | %(C) | 235 | % | 448 | %(E) | 496 | % | 590 | % | 349 | % |
(A) | Less than $0.005 per share. |
(B) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of securities by the Sentinel Government Securities Fund and Sentinel Total Return Bond Fund acquired on October 27, 2017. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
67
Financial Highlights (Continued)
Touchstone Active Bond Fund—ClassY
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.67 | $ | 10.00 | $ | 10.46 | $ | 10.59 | $ | 10.20 | $ | 10.45 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.31 | 0.26 | 0.27 | 0.29 | 0.29 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.32 | ) | 0.67 | (0.43 | ) | (0.12 | ) | 0.43 | (0.24 | ) | ||||||||||||||
Total from investment operations | (0.18 | ) | 0.98 | (0.17 | ) | 0.15 | 0.72 | 0.05 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.33 | ) | (0.30 | ) | ||||||||||||
Realized capital gains | — | — | — | (A) | — | — | — | |||||||||||||||||
Total distributions | (0.15 | ) | (0.31 | ) | (0.29 | ) | (0.28 | ) | (0.33 | ) | (0.30 | ) | ||||||||||||
Net asset value at end of period | $ | 10.34 | $ | 10.67 | $ | 10.00 | $ | 10.46 | $ | 10.59 | $ | 10.20 | ||||||||||||
Total return | (1.76 | %)(B) | 9.96 | % | (1.62 | %) | 1.43 | % | 7.18 | % | 0.49 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 84,915 | $ | 90,336 | $ | 165,937 | $ | 79,648 | $ | 76,544 | $ | 57,394 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.65 | %(C) | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||
Gross expenses | 0.74 | %(C) | 0.73 | % | 0.70 | % | 0.86 | % | 0.90 | % | 0.91 | % | ||||||||||||
Net investment income | 2.60 | %(C) | 2.93 | % | 2.59 | % | 2.58 | % | 2.77 | % | 2.75 | % | ||||||||||||
Portfolio turnover rate | 174 | %(B) | 235 | % | 448 | %(D) | 496 | % | 590 | % | 349 | % |
Touchstone Active Bond Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.67 | $ | 10.00 | $ | 10.46 | $ | 10.58 | $ | 10.19 | $ | 10.44 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.30 | 0.27 | 0.25 | 0.33 | 0.30 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.32 | ) | 0.69 | (0.43 | ) | (0.09 | ) | 0.40 | (0.24 | ) | ||||||||||||||
Total from investment operations | (0.18 | ) | 0.99 | (0.16 | ) | 0.16 | 0.73 | 0.06 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.34 | ) | (0.31 | ) | ||||||||||||
Realized capital gains | — | — | — | (A) | — | — | — | |||||||||||||||||
Total distributions | (0.15 | ) | (0.32 | ) | (0.30 | ) | (0.28 | ) | (0.34 | ) | (0.31 | ) | ||||||||||||
Net asset value at end of period | $ | 10.34 | $ | 10.67 | $ | 10.00 | $ | 10.46 | $ | 10.58 | $ | 10.19 | ||||||||||||
Total return | (1.72 | %)(B) | 10.06 | % | (1.54 | %) | 1.61 | % | 7.27 | % | 0.57 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 101,008 | $ | 96,477 | $ | 38,715 | $ | 20,800 | $ | 6,841 | $ | 6,788 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.57 | %(C) | 0.57 | % | 0.57 | % | 0.57 | % | 0.57 | % | 0.57 | % | ||||||||||||
Gross expenses | 0.64 | %(C) | 0.66 | % | 0.66 | % | 0.87 | % | 1.00 | % | 0.95 | % | ||||||||||||
Net investment income | 2.68 | %(C) | 3.01 | % | 2.67 | % | 2.66 | % | 2.85 | % | 2.83 | % | ||||||||||||
Portfolio turnover rate | 174 | %(B) | 235 | % | 448 | %(D) | 496 | % | 590 | % | 349 | % |
(A) | Less than $0.005 per share. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of securities by the Sentinel Government Securities Fund and Sentinel Total Return Bond Fund acquired on October 27, 2017. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
68
Financial Highlights (Continued)
Touchstone Anti-Benchmark® International Core Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
March 31, | Period Ended | |||||||
2020 | September 30, | |||||||
(Unaudited) | 2019(A) | |||||||
Net asset value at beginning of period | $ | 10.20 | $ | 10.00 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | 0.02 | 0.24 | ||||||
Net realized and unrealized gains (losses) on investments | (1.10 | ) | (0.03 | ) | ||||
Total from investment operations | (1.08 | ) | 0.21 | |||||
Distributions from: | ||||||||
Net investment income | (0.23 | ) | (0.01 | ) | ||||
Net asset value at end of period | $ | 8.89 | $ | 10.20 | ||||
Total return | (10.98 | %)(B) | 2.13 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 32 | $ | 3 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.69 | %(C) | 0.69 | %(C) | ||||
Gross expenses | 78.83 | %(C) | 373.97 | %(C) | ||||
Net investment income | 1.14 | %(C) | 2.74 | %(C) | ||||
Portfolio turnover rate | 26 | %(B) | 117 | %(B)(D) |
Touchstone Anti-Benchmark® International Core Equity Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
March 31, | Period Ended | |||||||
2020 | September 30, | |||||||
(Unaudited) | 2019(A) | |||||||
Net asset value at beginning of period | $ | 10.20 | $ | 10.00 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | 0.07 | 0.21 | ||||||
Net realized and unrealized gains (losses) on investments | (1.14 | ) | — | |||||
Total from investment operations | (1.07 | ) | 0.21 | |||||
Distributions from: | ||||||||
Net investment income | (0.24 | ) | (0.01 | ) | ||||
Net asset value at end of period | $ | 8.89 | $ | 10.20 | ||||
Total return | (10.93 | %)(B) | 2.14 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 32,508 | $ | 36,710 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.59 | %(C) | 0.59 | %(C) | ||||
Gross expenses | 0.97 | %(C) | 1.13 | %(C) | ||||
Net investment income | 1.23 | %(C) | 2.84 | %(C) | ||||
Portfolio turnover rate | 26 | %(B) | 117 | %(B)(D) |
(A) | Represents the period from commencement of operations (November 19, 2018) through September 30, 2019. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes securities received from processing a subscription-in-kind. |
See accompanying Notes to Financial Statements.
69
Financial Highlights (Continued)
Touchstone Anti-Benchmark®US Core Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
March 31, | Period Ended | |||||||
2020 | September 30, | |||||||
(Unaudited) | 2019(A) | |||||||
Net asset value at beginning of period | $ | 10.59 | $ | 10.00 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | 0.20 | 0.09 | ||||||
Net realized and unrealized gains (losses) on investments | (1.45 | ) | 0.56 | |||||
Total from investment operations | (1.25 | ) | 0.65 | |||||
Distributions from: | ||||||||
Net investment income | (0.18 | ) | (0.06 | ) | ||||
Net asset value at end of period | $ | 9.16 | $ | 10.59 | ||||
Total return | (12.14 | %)(B) | 6.57 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 112 | $ | 52 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.54 | %(C) | 0.54 | %(C) | ||||
Gross expenses | 14.52 | %(C) | 110.89 | %(C) | ||||
Net investment income | 2.93 | %(C) | 2.10 | %(C) | ||||
Portfolio turnover rate | 21 | %(B) | 137 | %(B)(D) |
Touchstone Anti-Benchmark® US Core Equity Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||
Ended | ||||||||
March 31, | Period Ended | |||||||
2020 | September 30, | |||||||
(Unaudited) | 2019(A) | |||||||
Net asset value at beginning of period | $ | 10.59 | $ | 10.00 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | 0.16 | 0.19 | ||||||
Net realized and unrealized gains (losses) on investments | (1.41 | ) | 0.46 | |||||
Total from investment operations | (1.25 | ) | 0.65 | |||||
Distributions from: | ||||||||
Net investment income | (0.18 | ) | (0.06 | ) | ||||
Net asset value at end of period | $ | 9.16 | $ | 10.59 | ||||
Total return | (12.10 | %)(B) | 6.59 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 23,411 | $ | 26,648 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.44 | %(C) | 0.44 | %(C) | ||||
Gross expenses | 0.78 | %(C) | 0.85 | %(C) | ||||
Net investment income | 3.03 | %(C) | 2.21 | %(C) | ||||
Portfolio turnover rate | �� | 21 | %(B) | 137 | %(B)(D) |
(A) | Represents the period from commencement of operations (November 19, 2018) through September 30, 2019. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes securities received from processing a subscription-in-kind. |
See accompanying Notes to Financial Statements.
70
Financial Highlights(Continued)
Touchstone Credit Opportunities II Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | Three Months | Period | ||||||||||||||||||||||
March 31, | Ended | Ended | ||||||||||||||||||||||
2020 | September 30, | Year Ended June 30, | June 30, | |||||||||||||||||||||
(Unaudited) | 2019(A) | 2019 | 2018 | 2017 | 2016(B) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.03 | $ | 9.95 | $ | 9.96 | $ | 10.41 | $ | 10.05 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.29 | 0.20 | 0.52 | 0.49 | 0.45 | 0.22 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.67 | ) | 0.04 | 0.12 | (0.13 | ) | 0.45 | 0.07 | ||||||||||||||||
Total from investment operations | (1.38 | ) | 0.24 | 0.64 | 0.36 | 0.90 | 0.29 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.12 | ) | (0.54 | ) | (0.53 | ) | (0.47 | ) | (0.23 | ) | ||||||||||||
Realized capital gains | — | (0.04 | ) | (0.11 | ) | (0.28 | ) | (0.07 | ) | (0.01 | ) | |||||||||||||
Total distributions | (0.29 | ) | (0.16 | ) | (0.65 | ) | (0.81 | ) | (0.54 | ) | (0.24 | ) | ||||||||||||
Net asset value at end of period | $ | 8.36 | $ | 10.03 | $ | 9.95 | $ | 9.96 | $ | 10.41 | $ | 10.05 | ||||||||||||
Total return(C) | (14.19 | %)(D) | 1.40 | %(D) | 6.69 | % | 3.50 | % | 9.08 | % | 2.95 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 4,980 | $ | 7,239 | $ | 226 | $ | 153 | $ | 45 | $ | 43 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense onsecurities sold short)(E) | 1.18 | %(F) | 1.18 | %(F) | 1.55 | % | 1.76 | % | 1.87 | % | 1.73 | %(F) | ||||||||||||
Gross expenses (including dividend and interest expenseon securities sold short)(G) | 1.52 | %(F) | 2.55 | %(F) | 7.56 | % | 10.00 | % | 16.01 | % | 38.32 | %(F) | ||||||||||||
Net investment income | 5.84 | %(F) | 5.43 | %(F) | 5.46 | % | 5.00 | % | 4.44 | % | 3.53 | %(F) | ||||||||||||
Portfolio turnover rate | 56 | %(D) | 28 | %(D)(H) | 94 | % | 70 | % | 84 | % | 91 | %(D) |
(A) | The Fund changed its fiscal year end from June 30 to September 30. |
(B) | Represents the period from commencement of operations (September 1, 2015) through June 30, 2016. |
(C) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.08%, 1.08%, 1.45%, 1.69%, 1.69% and 1.69% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.42%, 2.45%, 7.46%, 9.93%, 15.83% and 38.28% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(H) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Credit Opportunities Fund acquired on September 6, 2019 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
71
Financial Highlights(Continued)
Touchstone Credit Opportunities II Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | Three Months | Period | ||||||||||||||||||||||
March 31, | Ended | Ended | ||||||||||||||||||||||
2020 | September 30, | Year Ended June 30, | June 30, | |||||||||||||||||||||
(Unaudited) | 2019(A) | 2019 | 2018 | 2017 | 2016(B) | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.75 | $ | 9.98 | $ | 10.00 | $ | 10.44 | $ | 10.08 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.25 | 0.19 | 0.43 | 0.44 | 0.34 | 0.17 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.63 | ) | (0.27 | ) | 0.14 | (0.15 | ) | 0.48 | 0.08 | |||||||||||||||
Total from investment operations | (1.38 | ) | (0.08 | ) | 0.57 | 0.29 | 0.82 | 0.25 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.25 | ) | (0.11 | ) | (0.48 | ) | (0.45 | ) | (0.39 | ) | (0.16 | ) | ||||||||||||
Realized capital gains | — | (0.04 | ) | (0.11 | ) | (0.28 | ) | (0.07 | ) | (0.01 | ) | |||||||||||||
Total distributions | (0.25 | ) | (0.15 | ) | (0.59 | ) | (0.73 | ) | (0.46 | ) | (0.17 | ) | ||||||||||||
Net asset value at end of period | $ | 8.12 | $ | 9.75 | $ | 9.98 | $ | 10.00 | $ | 10.44 | $ | 10.08 | ||||||||||||
Total return(C) | (14.43 | %)(D) | 1.15 | %(D) | 5.97 | % | 2.69 | % | 8.31 | % | 2.59 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 3,242 | $ | 4,538 | $ | 127 | $ | 22 | $ | 22 | $ | 6 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expenseon securities sold short)(E) | 1.93 | %(F) | 1.93 | %(F) | 2.26 | % | 2.51 | % | 2.62 | % | 2.48 | %(F) | ||||||||||||
Gross expenses (including dividend and interest expenseon securities sold short)(G) | 2.39 | %(F) | 3.62 | %(F) | 11.81 | % | 34.60 | % | 73.30 | % | 276.34 | %(F) | ||||||||||||
Net investment income | 5.09 | %(F) | 4.68 | %(F) | 4.75 | % | 4.25 | % | 3.69 | % | 2.79 | %(F) | ||||||||||||
Portfolio turnover rate | 56 | %(D) | 28 | %(D)(H) | 94 | % | 70 | % | 84 | % | 91 | %(D) |
(A) | The Fund changed its fiscal year end from June 30 to September 30. |
(B) | Represents the period from commencement of operations (September 1, 2015) through June 30, 2016. |
(C) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 1.83%, 1.83%, 2.16%, 2.44%, 2.44% and 2.44% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 2.29%, 3.52%, 11.71%, 34.53%, 73.12% and 276.30% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(H) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Credit Opportunities Fund acquired on September 6, 2019 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
72
Financial Highlights(Continued)
Touchstone Credit Opportunities II Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | Three Months | Period | ||||||||||||||||||||||
March 31, | Ended | Ended | ||||||||||||||||||||||
2020 | September 30, | Year Ended June 30, | June 30, | |||||||||||||||||||||
(Unaudited) | 2019(A) | 2019 | 2018 | 2017 | 2016(B) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.16 | $ | 9.95 | $ | 9.96 | $ | 10.41 | $ | 10.04 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.31 | 0.17 | 0.60 | 0.50 | 0.39 | 0.31 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.71 | ) | 0.21 | 0.06 | (0.12 | ) | 0.54 | (0.02 | ) | |||||||||||||||
Total from investment operations | (1.40 | ) | 0.38 | 0.66 | 0.38 | 0.93 | 0.29 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.30 | ) | (0.13 | ) | (0.56 | ) | (0.55 | ) | (0.49 | ) | (0.24 | ) | ||||||||||||
Realized capital gains | — | (0.04 | ) | (0.11 | ) | (0.28 | ) | (0.07 | ) | (0.01 | ) | |||||||||||||
Total distributions | (0.30 | ) | (0.17 | ) | (0.67 | ) | (0.83 | ) | (0.56 | ) | (0.25 | ) | ||||||||||||
Net asset value at end of period | $ | 8.46 | $ | 10.16 | $ | 9.95 | $ | 9.96 | $ | 10.41 | $ | 10.04 | ||||||||||||
Total return | (14.09 | %)(C) | 1.54 | %(C) | 7.05 | % | 3.73 | % | 9.39 | % | 3.04 | %(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 30,117 | $ | 47,483 | $ | 11,356 | $ | 444 | $ | 315 | $ | 3 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expenseon securities sold short)(D) | 0.93 | %(E) | 0.93 | %(E) | 1.09 | % | 1.51 | % | 1.62 | % | 1.48 | %(E) | ||||||||||||
Gross expenses (including dividend and interest expenseon securities sold short)(F) | 1.20 | %(E) | 1.60 | %(E) | 1.71 | % | 4.29 | % | 8.25 | % | 355.77 | %(E) | ||||||||||||
Net investment income | 6.09 | %(E) | 5.68 | %(E) | 5.93 | % | 5.25 | % | 4.69 | % | 3.79 | %(E) | ||||||||||||
Portfolio turnover rate | 56 | %(C) | 28 | %(C)(G) | 94 | % | 70 | % | 84 | % | 91 | %(C) |
(A) | The Fund changed its fiscal year end from June 30 to September 30. |
(B) | Represents the period from commencement of operations (September 1, 2015) through June 30, 2016. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 0.83%, 0.83%, 0.99%, 1.44%, 1.44% and 1.44% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 1.10%, 1.50%, 1.61%, 4.22%, 8.07% and 355.73% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(G) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Credit Opportunities Fund acquired on September 6, 2019 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
73
Financial Highlights(Continued)
Touchstone Credit Opportunities II Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | Three Months | Period | ||||||||||||||||||||||
March 31, | Ended | Ended | ||||||||||||||||||||||
2020 | September 30, | Year Ended June 30, | June 30, | |||||||||||||||||||||
(Unaudited) | 2019(A) | 2019 | 2018 | 2017 | 2016(B) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.22 | $ | 9.95 | $ | 9.96 | $ | 10.41 | $ | 10.05 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.31 | 0.15 | 0.58 | 0.55 | 0.50 | 0.28 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.71 | ) | 0.29 | 0.09 | (0.16 | ) | 0.43 | 0.03 | ||||||||||||||||
Total from investment operations | (1.40 | ) | 0.44 | 0.67 | 0.39 | 0.93 | 0.31 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.13 | ) | (0.57 | ) | (0.56 | ) | (0.50 | ) | (0.25 | ) | ||||||||||||
Realized capital gains | — | (0.04 | ) | (0.11 | ) | (0.28 | ) | (0.07 | ) | (0.01 | ) | |||||||||||||
Total distributions | (0.31 | ) | (0.17 | ) | (0.68 | ) | (0.84 | ) | (0.57 | ) | (0.26 | ) | ||||||||||||
Net asset value at end of period | $ | 8.51 | $ | 10.22 | $ | 9.95 | $ | 9.96 | $ | 10.41 | $ | 10.05 | ||||||||||||
Total return | (14.05 | %)(C) | 1.57 | %(C) | 7.04 | % | 3.85 | % | 9.47 | % | 3.22 | %(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 37,838 | $ | 48,158 | $ | 47,531 | $ | 51,715 | $ | 53,150 | $ | 54,411 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expenseon securities sold short)(D) | 0.83 | %(E) | 0.83 | %(E) | 1.24 | % | 1.41 | % | 1.52 | % | 1.38 | %(E) | ||||||||||||
Gross expenses (including dividend and interest expenseon securities sold short)(F) | 1.06 | %(E) | 1.36 | %(E) | 1.51 | % | 1.59 | % | 1.69 | % | 1.65 | %(E) | ||||||||||||
Net investment income | 6.19 | %(E) | 5.78 | %(E) | 5.78 | % | 5.35 | % | 4.79 | % | 3.88 | %(E) | ||||||||||||
Portfolio turnover rate | 56 | %(C) | 28 | %(C)(G) | 94 | % | 70 | % | 84 | % | 91 | %(C) |
(A) | The Fund changed its fiscal year end from June 30 to September 30. |
(B) | Represents the period from commencement of operations (September 1, 2015) through June 30, 2016. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short was 0.73%, 0.73%, 1.14%, 1.34%, 1.34% and 1.34% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short was 0.96%, 1.26%, 1.40%, 1.52%, 1.51% and 1.61% for the six months ended March 31, 2020, for the period ended September 30, 2019, years ended June 30, 2019, 2018, 2017 and for the period ended June 30, 2016, respectively. |
(G) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Credit Opportunities Fund acquired on September 6, 2019 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
74
Financial Highlights(Continued)
Touchstone High Yield Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.27 | $ | 8.12 | $ | 8.43 | $ | 8.21 | $ | 7.95 | $ | 8.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.21 | 0.40 | 0.41 | 0.39 | 0.41 | 0.43 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.18 | ) | 0.16 | (0.31 | ) | 0.21 | 0.26 | (0.81 | ) | |||||||||||||||
Total from investment operations | (0.97 | ) | 0.56 | 0.10 | 0.60 | 0.67 | (0.38 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.41 | ) | (0.41 | ) | (0.38 | ) | (0.41 | ) | (0.44 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.14 | ) | |||||||||||||||||
Total distributions | (0.20 | ) | (0.41 | ) | (0.41 | ) | (0.38 | ) | (0.41 | ) | (0.58 | ) | ||||||||||||
Net asset value at end of period | $ | 7.10 | $ | 8.27 | $ | 8.12 | $ | 8.43 | $ | 8.21 | $ | 7.95 | ||||||||||||
Total return(A) | (12.04 | %)(B) | 7.08 | % | 1.24 | % | 7.45 | % | 8.78 | % | (4.54 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 12,124 | $ | 14,642 | $ | 12,457 | $ | 16,925 | $ | 20,995 | $ | 26,797 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.05 | %(C) | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | 1.05 | % | ||||||||||||
Gross expenses | 1.26 | %(C) | 1.28 | % | 1.29 | % | 1.24 | % | 1.23 | % | 1.15 | % | ||||||||||||
Net investment income | 4.79 | %(C) | 4.95 | % | 4.76 | % | 4.63 | % | 5.19 | % | 4.92 | % | ||||||||||||
Portfolio turnover rate | 35 | %(B) | 63 | % | 59 | % | 69 | % | 56 | % | 35 | % |
Touchstone High Yield Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.25 | $ | 8.10 | $ | 8.41 | $ | 8.19 | $ | 7.93 | $ | 8.90 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.16 | 0.34 | 0.34 | 0.33 | 0.35 | 0.36 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.16 | ) | 0.16 | (0.30 | ) | 0.21 | 0.26 | (0.82 | ) | |||||||||||||||
Total from investment operations | (1.00 | ) | 0.50 | 0.04 | 0.54 | 0.61 | (0.46 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.35 | ) | (0.35 | ) | (0.32 | ) | (0.35 | ) | (0.37 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.14 | ) | |||||||||||||||||
Total distributions | (0.17 | ) | (0.35 | ) | (0.35 | ) | (0.32 | ) | (0.35 | ) | (0.51 | ) | ||||||||||||
Net asset value at end of period | $ | 7.08 | $ | 8.25 | $ | 8.10 | $ | 8.41 | $ | 8.19 | $ | 7.93 | ||||||||||||
Total return(A) | (12.39 | %)(B) | 6.31 | % | 0.50 | % | 6.68 | % | 7.99 | % | (5.28 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 2,758 | $ | 4,582 | $ | 9,444 | $ | 13,025 | $ | 16,372 | $ | 24,755 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.80 | %(C) | 1.80 | % | 1.80 | % | 1.80 | % | 1.80 | % | 1.80 | % | ||||||||||||
Gross expenses | 2.25 | %(C) | 2.10 | % | 2.00 | % | 1.97 | % | 1.94 | % | 1.87 | % | ||||||||||||
Net investment income | 4.04 | %(C) | 4.20 | % | 4.01 | % | 3.88 | % | 4.44 | % | 4.17 | % | ||||||||||||
Portfolio turnover rate | 35 | %(B) | 63 | % | 59 | % | 69 | % | 56 | % | 35 | % |
(A) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
75
Financial Highlights(Continued)
Touchstone High Yield Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.52 | $ | 8.35 | $ | 8.67 | $ | 8.44 | $ | 8.16 | $ | 9.14 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.23 | 0.47 | 0.44 | 0.43 | 0.46 | 0.47 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.23 | ) | 0.14 | (0.32 | ) | 0.21 | 0.25 | (0.85 | ) | |||||||||||||||
Total from investment operations | (1.00 | ) | 0.61 | 0.12 | 0.64 | 0.71 | (0.38 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.44 | ) | (0.44 | ) | (0.41 | ) | (0.43 | ) | (0.46 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.14 | ) | |||||||||||||||||
Total distributions | (0.21 | ) | (0.44 | ) | (0.44 | ) | (0.41 | ) | (0.43 | ) | (0.60 | ) | ||||||||||||
Net asset value at end of period | $ | 7.31 | $ | 8.52 | $ | 8.35 | $ | 8.67 | $ | 8.44 | $ | 8.16 | ||||||||||||
Total return | (11.99 | %)(A) | 7.52 | % | 1.44 | % | 7.74 | % | 9.11 | % | (4.42 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 34,975 | $ | 44,030 | $ | 63,983 | $ | 75,435 | $ | 85,739 | $ | 119,505 | ||||||||||||
Ratio to average net assets: | 0.80 | %(B) | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | ||||||||||||
Net expenses | ||||||||||||||||||||||||
Gross expenses | 0.90 | %(B) | 0.91 | % | 0.88 | % | 0.90 | % | 0.91 | % | 0.87 | % | ||||||||||||
Net investment income | 5.04 | %(B) | 5.20 | % | 5.01 | % | 4.88 | % | 5.44 | % | 5.17 | % | ||||||||||||
Portfolio turnover rate | 35 | %(A) | 63 | % | 59 | % | 69 | % | 56 | % | 35 | % |
Touchstone High Yield Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.51 | $ | 8.35 | $ | 8.66 | $ | 8.43 | $ | 8.16 | $ | 9.13 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.21 | 0.44 | 0.44 | 0.42 | 0.44 | 0.46 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.21 | ) | 0.16 | (0.30 | ) | 0.22 | 0.27 | (0.82 | ) | |||||||||||||||
Total from investment operations | (1.00 | ) | 0.60 | 0.14 | 0.64 | 0.71 | (0.36 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.44 | ) | (0.45 | ) | (0.41 | ) | (0.44 | ) | (0.47 | ) | ||||||||||||
Realized capital gains | — | — | — | — | — | (0.14 | ) | |||||||||||||||||
Total distributions | (0.21 | ) | (0.44 | ) | (0.45 | ) | (0.41 | ) | (0.44 | ) | (0.61 | ) | ||||||||||||
Net asset value at end of period | $ | 7.30 | $ | 8.51 | $ | 8.35 | $ | 8.66 | $ | 8.43 | $ | 8.16 | ||||||||||||
Total return | (11.97 | %)(A) | 7.47 | % | 1.63 | % | 7.70 | % | 9.19 | % | (4.23 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 134,993 | $ | 135,328 | $ | 111,705 | $ | 112,503 | $ | 93,267 | $ | 59,037 | ||||||||||||
Ratio to average net assets: | 0.72 | %(B) | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | 0.72 | % | ||||||||||||
Net expenses | ||||||||||||||||||||||||
Gross expenses | 0.75 | %(B) | 0.77 | % | 0.76 | % | 0.75 | % | 0.77 | % | 0.75 | % | ||||||||||||
Net investment income | 5.12 | %(B) | 5.28 | % | 5.09 | % | 4.96 | % | 5.52 | % | 5.25 | % | ||||||||||||
Portfolio turnover rate | 35 | %(A) | 63 | % | 59 | % | 69 | % | 56 | % | 35 | % |
(A) | Not annualized. |
(B) | Annualized. |
See accompanying Notes to Financial Statements.
76
Financial Highlights(Continued)
Touchstone Impact Bond Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.44 | $ | 9.77 | $ | 10.13 | $ | 10.38 | $ | 10.19 | $ | 10.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.23 | 0.22 | 0.18 | 0.24 | 0.22 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.01 | ) | 0.69 | (0.33 | ) | (0.17 | ) | 0.22 | 0.01 | |||||||||||||||
Total from investment operations | 0.09 | 0.92 | (0.11 | ) | 0.01 | 0.46 | 0.23 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.25 | ) | (0.25 | ) | (0.26 | ) | (0.27 | ) | (0.27 | ) | ||||||||||||
Net asset value at end of period | $ | 10.42 | $ | 10.44 | $ | 9.77 | $ | 10.13 | $ | 10.38 | $ | 10.19 | ||||||||||||
Total return(A) | 0.88 | %(B) | 9.59 | % | (1.07 | %) | 0.15 | % | 4.57 | % | 2.24 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 14,675 | $ | 10,083 | $ | 5,697 | $ | 5,137 | $ | 8,639 | $ | 5,749 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.85 | %(C) | 0.85 | % | 0.85 | % | 0.85 | % | 0.87 | % | 0.90 | % | ||||||||||||
Gross expenses | 1.06 | %(C) | 1.19 | % | 1.30 | % | 1.22 | % | 1.25 | % | 1.26 | % | ||||||||||||
Net investment income | 1.94 | %(C) | 2.28 | % | 2.25 | % | 1.98 | % | 2.26 | % | 2.10 | % | ||||||||||||
Portfolio turnover rate | 12 | %(B) | 22 | % | 40 | % | 18 | % | 12 | % | 19 | % |
Touchstone Impact Bond Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.43 | $ | 9.75 | $ | 10.12 | $ | 10.36 | $ | 10.18 | $ | 10.21 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.05 | 0.16 | 0.16 | 0.11 | 0.15 | 0.14 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (— | )(D) | 0.70 | (0.35 | ) | (0.17 | ) | 0.22 | 0.02 | |||||||||||||||
Total from investment operations | 0.05 | 0.86 | (0.19 | ) | (0.06 | ) | 0.37 | 0.16 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.18 | ) | (0.18 | ) | (0.18 | ) | (0.19 | ) | (0.19 | ) | ||||||||||||
Net asset value at end of period | $ | 10.41 | $ | 10.43 | $ | 9.75 | $ | 10.12 | $ | 10.36 | $ | 10.18 | ||||||||||||
Total return(A) | 0.52 | %(B) | 8.89 | % | (1.94 | %) | (0.51 | %) | 3.70 | % | 1.60 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,653 | $ | 1,475 | $ | 1,087 | $ | 1,876 | $ | 2,813 | $ | 2,368 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.60 | %(C) | 1.60 | % | 1.60 | % | 1.60 | % | 1.62 | % | 1.65 | % | ||||||||||||
Gross expenses | 2.52 | %(C) | 2.94 | % | 2.78 | % | 2.30 | % | 2.19 | % | 2.27 | % | ||||||||||||
Net investment income | 1.19 | %(C) | 1.53 | % | 1.50 | % | 1.23 | % | 1.51 | % | 1.35 | % | ||||||||||||
Portfolio turnover rate | 12 | %(B) | 22 | % | 40 | % | 18 | % | 12 | % | 19 | % |
(A) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
77
Financial Highlights(Continued)
Touchstone Impact Bond Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.45 | $ | 9.78 | $ | 10.15 | $ | 10.39 | $ | 10.20 | $ | 10.24 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.26 | 0.24 | 0.24 | 0.26 | 0.25 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (— | )(A) | 0.69 | (0.33 | ) | (0.19 | ) | 0.23 | 0.01 | |||||||||||||||
Total from investment operations | 0.11 | 0.95 | (0.09 | ) | 0.05 | 0.49 | 0.26 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.28 | ) | (0.28 | ) | (0.29 | ) | (0.30 | ) | (0.30 | ) | ||||||||||||
Net asset value at end of period | $ | 10.44 | $ | 10.45 | $ | 9.78 | $ | 10.15 | $ | 10.39 | $ | 10.20 | ||||||||||||
Total return | 1.10 | %(B) | 9.84 | % | (0.92 | %) | 0.50 | % | 4.82 | % | 2.51 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 112,395 | $ | 95,218 | $ | 54,895 | $ | 37,233 | $ | 49,484 | $ | 39,751 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.60 | %(C) | 0.60 | % | 0.60 | % | 0.60 | % | 0.62 | % | 0.65 | % | ||||||||||||
Gross expenses | 0.64 | %(C) | 0.68 | % | 0.67 | % | 0.73 | % | 0.71 | % | 0.70 | % | ||||||||||||
Net investment income | 2.19 | %(C) | 2.53 | % | 2.50 | % | 2.23 | % | 2.51 | % | 2.35 | % | ||||||||||||
Portfolio turnover rate | 12 | %(B) | 22 | % | 40 | % | 18 | % | 12 | % | 19 | % |
Touchstone Impact Bond Fund — Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.45 | $ | 9.78 | $ | 10.14 | $ | 10.39 | $ | 10.20 | $ | 10.24 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.27 | 0.26 | 0.25 | 0.28 | 0.26 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (— | )(A) | 0.69 | (0.33 | ) | (0.20 | ) | 0.22 | 0.01 | |||||||||||||||
Total from investment operations | 0.12 | 0.96 | (0.07 | ) | 0.05 | 0.50 | 0.27 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.29 | ) | (0.29 | ) | (0.30 | ) | (0.31 | ) | (0.31 | ) | ||||||||||||
Net asset value at end of period | $ | 10.44 | $ | 10.45 | $ | 9.78 | $ | 10.14 | $ | 10.39 | $ | 10.20 | ||||||||||||
Total return | 1.15 | %(B) | 9.95 | % | (0.72 | %) | 0.51 | % | 4.94 | % | 2.65 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 191,466 | $ | 207,462 | $ | 191,224 | $ | 222,013 | $ | 166,008 | $ | 134,877 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.50 | %(C) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | ||||||||||||
Gross expenses | 0.59 | %(C) | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.61 | % | ||||||||||||
Net investment income | 2.28 | %(C) | 2.63 | % | 2.60 | % | 2.33 | % | 2.63 | % | 2.50 | % | ||||||||||||
Portfolio turnover rate | 12 | %(B) | 22 | % | 40 | % | 18 | % | 12 | % | 19 | % |
(A) | Less than $0.005 per share. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
78
Financial Highlights(Continued)
Touchstone International ESG Equity Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.50 | $ | 9.58 | $ | 9.40 | $ | 8.77 | $ | 8.27 | $ | 9.98 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | — | (A) | 0.15 | 0.24 | 0.25 | 0.22 | 0.24 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.01 | ) | (0.29 | ) | 0.35 | 0.62 | 1.04 | (1.25 | ) | |||||||||||||||
Total from investment operations | (1.01 | ) | (0.14 | ) | 0.59 | 0.87 | 1.26 | (1.01 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.17 | ) | (0.23 | ) | (0.24 | ) | (0.21 | ) | (0.25 | ) | ||||||||||||
Realized capital gains | (1.69 | ) | (0.77 | ) | (0.18 | ) | — | (0.55 | ) | (0.45 | ) | |||||||||||||
Total distributions | (1.71 | ) | (0.94 | ) | (0.41 | ) | (0.24 | ) | (0.76 | ) | (0.70 | ) | ||||||||||||
Net asset value at end of period | $ | 5.78 | $ | 8.50 | $ | 9.58 | $ | 9.40 | $ | 8.77 | $ | 8.27 | ||||||||||||
Total return(B) | (16.15 | %)(C) | (0.81 | %) | 6.41 | % | 10.10 | % | 16.80 | % | (10.79 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 8,638 | $ | 10,333 | $ | 11,984 | $ | 22,725 | $ | 26,907 | $ | 36,023 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.17 | %(D) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Gross expenses | 1.67 | %(D) | 1.52 | % | 1.41 | % | 1.36 | % | 1.34 | % | 1.25 | % | ||||||||||||
Net investment income | 0.19 | %(D) | 1.71 | % | 2.16 | % | 2.69 | % | 2.57 | % | 2.57 | % | ||||||||||||
Portfolio turnover rate | 48 | %(C) | 123 | % | 68 | % | 39 | % | 38 | % | 31 | % |
Touchstone International ESG Equity Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.48 | $ | 9.57 | $ | 9.39 | $ | 8.75 | $ | 8.26 | $ | 9.97 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | 0.09 | 0.14 | 0.17 | 0.15 | 0.17 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.00 | ) | (0.30 | ) | 0.38 | 0.64 | 1.04 | (1.24 | ) | |||||||||||||||
Total from investment operations | (1.03 | ) | (0.21 | ) | 0.52 | 0.81 | 1.19 | (1.07 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (— | )(A) | (0.11 | ) | (0.16 | ) | (0.17 | ) | (0.15 | ) | (0.19 | ) | ||||||||||||
Realized capital gains | (1.69 | ) | (0.77 | ) | (0.18 | ) | — | (0.55 | ) | (0.45 | ) | |||||||||||||
Total distributions | (1.69 | ) | (0.88 | ) | (0.34 | ) | (0.17 | ) | (0.70 | ) | (0.64 | ) | ||||||||||||
Net asset value at end of period | $ | 5.76 | $ | 8.48 | $ | 9.57 | $ | 9.39 | $ | 8.75 | $ | 8.26 | ||||||||||||
Total return(B) | (16.44 | %)(C) | (1.61 | %) | 5.62 | % | 9.42 | % | 15.81 | % | (11.45 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 5,459 | $ | 10,691 | $ | 19,455 | $ | 22,324 | $ | 25,781 | $ | 31,405 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.95 | %(D) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | ||||||||||||
Gross expenses | 2.39 | %(D) | 2.16 | % | 2.07 | % | 2.05 | % | 2.05 | % | 2.00 | % | ||||||||||||
Net investment income (loss) | (0.59 | %)(D) | 1.05 | % | 1.41 | % | 1.94 | % | 1.82 | % | 1.82 | % | ||||||||||||
Portfolio turnover rate | 48 | %(C) | 123 | % | 68 | % | 39 | % | 38 | % | 31 | % |
(A) | Less than $0.005 per share. |
(B) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
79
Financial Highlights(Continued)
Touchstone International ESG Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.47 | $ | 9.55 | $ | 9.38 | $ | 8.75 | $ | 8.25 | $ | 9.97 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.01 | 0.18 | 0.23 | 0.26 | 0.23 | 0.26 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (1.00 | ) | (0.30 | ) | 0.37 | 0.63 | 1.05 | (1.25 | ) | |||||||||||||||
Total from investment operations | (0.99 | ) | (0.12 | ) | 0.60 | 0.89 | 1.28 | (0.99 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.19 | ) | (0.25 | ) | (0.26 | ) | (0.23 | ) | (0.28 | ) | ||||||||||||
Realized capital gains | (1.69 | ) | (0.77 | ) | (0.18 | ) | — | (0.55 | ) | (0.45 | ) | |||||||||||||
Total distributions | (1.72 | ) | (0.96 | ) | (0.43 | ) | (0.26 | ) | (0.78 | ) | (0.73 | ) | ||||||||||||
Net asset value at end of period | $ | 5.76 | $ | 8.47 | $ | 9.55 | $ | 9.38 | $ | 8.75 | $ | 8.25 | ||||||||||||
Total return | (16.03 | %)(A) | (0.57 | %) | 6.59 | % | 10.41 | % | 17.13 | % | (10.58 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 10,187 | $ | 16,554 | $ | 56,185 | $ | 75,763 | $ | 99,953 | $ | 100,772 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.90 | %(B) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Gross expenses | 1.41 | %(B) | 1.09 | % | 0.99 | % | 1.00 | % | 1.03 | % | 0.97 | % | ||||||||||||
Net investment income | 0.46 | %(B) | 2.17 | % | 2.41 | % | 2.94 | % | 2.82 | % | 2.82 | % | ||||||||||||
Portfolio turnover rate | 48 | %(A) | 123 | % | 68 | % | 39 | % | 38 | % | 31 | % |
Touchstone International ESG Equity Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||
Ended | ||||||||
March 31, | Period Ended | |||||||
2020 | September 30, | |||||||
(Unaudited) | 2019(C) | |||||||
Net asset value at beginning of period | $ | 8.48 | $ | 8.05 | (D) | |||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | 0.02 | (0.01 | ) | |||||
Net realized and unrealized gains (losses) on investments | (1.01 | ) | 0.45 | |||||
Total from investment operations | (0.99 | ) | 0.44 | |||||
Distributions from: | ||||||||
Net investment income | (0.03 | ) | (0.01 | ) | ||||
Realized capital gains | (1.69 | ) | — | |||||
Total distributions | (1.72 | ) | (0.01 | ) | ||||
Net asset value at end of period | $ | 5.77 | $ | 8.48 | ||||
Total return | (15.88 | %)(A) | 5.46 | %(A) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 2 | $ | 3 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.89 | %(B) | 0.89 | %(B) | ||||
Gross expenses | 1,107.95 | %(B) | 2,643.52 | %(B) | ||||
Net investment income (loss) | 0.47 | %(B) | (0.97 | %)(B) | ||||
Portfolio turnover rate | 48 | %(A) | 123 | %(A) |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Represents the period from commencement of operations (August 23, 2019) through September 30, 2019. |
(D) | Net asset value at the beginning of period is based on the net asset value of Class A shares on August 23, 2019. |
See accompanying Notes to Financial Statements.
80
Financial Highlights(Continued)
Touchstone Mid Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 38.87 | $ | 34.99 | $ | 30.50 | $ | 25.91 | $ | 23.22 | $ | 23.68 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.10 | 0.05 | 0.01 | (A) | (0.02 | )(A) | 0.12 | (0.02 | )(A) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (7.07 | ) | 5.00 | 4.79 | 4.69 | 2.57 | (0.44 | ) | ||||||||||||||||
Total from investment operations | (6.97 | ) | 5.05 | 4.80 | 4.67 | 2.69 | (0.46 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.02 | ) | — | (0.08 | ) | — | — | |||||||||||||||
Realized capital gains | (0.89 | ) | (1.15 | ) | (0.31 | ) | — | — | — | |||||||||||||||
Total distributions | (1.13 | ) | (1.17 | ) | (0.31 | ) | (0.08 | ) | — | — | ||||||||||||||
Net asset value at end of period | $ | 30.77 | $ | 38.87 | $ | 34.99 | $ | 30.50 | $ | 25.91 | $ | 23.22 | ||||||||||||
Total return(B) | (18.56 | %)(C) | 15.34 | % | 15.83 | % | 18.08 | % | 11.58 | % | (1.94 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 66,666 | $ | 61,772 | $ | 36,824 | $ | 34,761 | $ | 53,044 | $ | 62,717 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.21 | %(D) | 1.23 | % | 1.24 | % | 1.24 | % | 1.24 | % | 1.24 | % | ||||||||||||
Gross expenses | 1.27 | %(D) | 1.36 | % | 1.35 | % | 1.36 | % | 1.35 | % | 1.35 | % | ||||||||||||
Net investment income (loss) | 0.46 | %(D) | 0.19 | % | 0.04 | % | (0.09 | %) | 0.43 | % | (0.07 | %) | ||||||||||||
Portfolio turnover rate | 9 | %(C) | 25 | % | 46 | % | 19 | % | 19 | % | 17 | % |
Touchstone Mid Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 36.34 | $ | 33.01 | $ | 29.02 | $ | 24.76 | $ | 22.35 | $ | 22.97 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.17 | ) | (0.22 | )(A) | (0.22 | )(A) | (0.12 | ) | (0.20 | )(A) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (6.65 | ) | 4.65 | 4.52 | 4.48 | 2.53 | (0.42 | ) | ||||||||||||||||
Total from investment operations | (6.67 | ) | 4.48 | 4.30 | 4.26 | 2.41 | (0.62 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (0.89 | ) | (1.15 | ) | (0.31 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 28.78 | $ | 36.34 | $ | 33.01 | $ | 29.02 | $ | 24.76 | $ | 22.35 | ||||||||||||
Total return(B) | (18.88 | %)(C) | 14.48 | % | 14.91 | % | 17.21 | % | 10.78 | % | (2.70 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 62,142 | $ | 66,855 | $ | 56,274 | $ | 57,224 | $ | 59,431 | $ | 60,815 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.96 | %(D) | 1.98 | % | 1.99 | % | 1.99 | % | 1.99 | % | 1.99 | % | ||||||||||||
Gross expenses | 2.00 | %(D) | 2.07 | % | 2.08 | % | 2.11 | % | 2.13 | % | 2.12 | % | ||||||||||||
Net investment loss | (0.29 | %)(D) | (0.56 | %) | (0.71 | %) | (0.84 | %) | (0.32 | %) | (0.82 | %) | ||||||||||||
Portfolio turnover rate | 9 | %(C) | 25 | % | 46 | % | 19 | % | 19 | % | 17 | % |
(A) | The net investment income per share was based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
81
Financial Highlights(Continued)
Touchstone Mid Cap Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 39.33 | $ | 35.33 | $ | 30.77 | $ | 26.14 | $ | 23.38 | $ | 23.83 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.14 | 0.10 | (A) | 0.05 | (A) | 0.18 | 0.05 | (A) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (7.15 | ) | 5.05 | 4.82 | 4.74 | 2.59 | (0.45 | ) | ||||||||||||||||
Total from investment operations | (7.01 | ) | 5.19 | 4.92 | 4.79 | 2.77 | (0.40 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.29 | ) | (0.04 | ) | (0.05 | ) | (0.16 | ) | (0.01 | ) | (0.05 | ) | ||||||||||||
Realized capital gains | (0.89 | ) | (1.15 | ) | (0.31 | ) | — | — | — | |||||||||||||||
Total distributions | (1.18 | ) | (1.19 | ) | (0.36 | ) | (0.16 | ) | (0.01 | ) | (0.05 | ) | ||||||||||||
Net asset value at end of period | $ | 31.14 | $ | 39.33 | $ | 35.33 | $ | 30.77 | $ | 26.14 | $ | 23.38 | ||||||||||||
Total return | (18.46 | %)(B) | 15.62 | % | 16.09 | % | 18.40 | % | 11.87 | % | (1.69 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,457,013 | $ | 1,194,001 | $ | 712,578 | $ | 551,794 | $ | 476,831 | $ | 481,735 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.96 | %(C) | 0.98 | % | 0.99 | % | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||||||
Gross expenses | 1.01 | %(C) | 1.07 | % | 1.05 | % | 1.08 | % | 1.07 | % | 1.11 | % | ||||||||||||
Net investment income | 0.71 | %(C) | 0.44 | % | 0.29 | % | 0.16 | % | 0.68 | % | 0.18 | % | ||||||||||||
Portfolio turnover rate | 9 | %(B) | 25 | % | 46 | % | 19 | % | 19 | % | 17 | % |
Touchstone Mid Cap Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 38.62 | $ | 34.78 | $ | 30.32 | $ | 25.75 | $ | 23.08 | $ | 23.54 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.06 | 0.05 | 0.01 | (A) | (0.02 | )(A) | 0.12 | (0.02 | )(A) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (6.99 | ) | 4.96 | 4.76 | 4.67 | 2.55 | (0.44 | ) | ||||||||||||||||
Total from investment operations | (6.93 | ) | 5.01 | 4.77 | 4.65 | 2.67 | (0.46 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.02 | ) | — | (0.08 | ) | (— | )(D) | — | ||||||||||||||
Realized capital gains | (0.89 | ) | (1.15 | ) | (0.31 | ) | — | — | — | |||||||||||||||
Total distributions | (1.15 | ) | (1.17 | ) | (0.31 | ) | (0.08 | ) | (— | )(D) | — | |||||||||||||
Net asset value at end of period | $ | 30.54 | $ | 38.62 | $ | 34.78 | $ | 30.32 | $ | 25.75 | $ | 23.08 | ||||||||||||
Total return | (18.56 | %)(B) | 15.32 | % | 15.83 | % | 18.08 | % | 11.58 | % | (1.95 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 85,168 | $ | 61,657 | $ | 20,464 | $ | 19,312 | $ | 18,934 | $ | 18,693 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.21 | %(C) | 1.22 | % | 1.24 | % | 1.24 | % | 1.24 | % | 1.24 | % | ||||||||||||
Gross expenses | 1.28 | %(C) | 1.37 | % | 1.40 | % | 1.44 | % | 1.46 | % | 1.44 | % | ||||||||||||
Net investment income (loss) | 0.46 | %(C) | 0.19 | % | 0.04 | % | (0.09 | %) | 0.43 | % | (0.07 | %) | ||||||||||||
Portfolio turnover rate | 9 | %(B) | 25 | % | 46 | % | 19 | % | 19 | % | 17 | % |
(A) | The net investment income per share was based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
82
Financial Highlights(Continued)
Touchstone Mid Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 39.41 | $ | 35.38 | $ | 30.81 | $ | 26.18 | $ | 23.40 | $ | 23.85 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.20 | 0.15 | 0.12 | (A) | 0.07 | (A) | 0.19 | 0.06 | (A) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (7.21 | ) | 5.08 | 4.83 | 4.74 | 2.61 | (0.44 | ) | ||||||||||||||||
Total from investment operations | (7.01 | ) | 5.23 | 4.95 | 4.81 | 2.80 | (0.38 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.05 | ) | (0.07 | ) | (0.18 | ) | (0.02 | ) | (0.07 | ) | ||||||||||||
Realized capital gains | (0.89 | ) | (1.15 | ) | (0.31 | ) | — | — | — | |||||||||||||||
Total distributions | (1.21 | ) | (1.20 | ) | (0.38 | ) | (0.18 | ) | (0.02 | ) | (0.07 | ) | ||||||||||||
Net asset value at end of period | $ | 31.19 | $ | 39.41 | $ | 35.38 | $ | 30.81 | $ | 26.18 | $ | 23.40 | ||||||||||||
Total return | (18.43 | %)(B) | 15.71 | % | 16.18 | % | 18.50 | % | 11.92 | % | (1.62 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 590,724 | $ | 245,418 | $ | 129,284 | $ | 113,867 | $ | 77,775 | $ | 76,324 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.89 | %(C) | 0.91 | % | 0.92 | % | 0.92 | % | 0.92 | % | 0.92 | % | ||||||||||||
Gross expenses | 0.92 | %(C) | 0.97 | % | 0.97 | % | 0.98 | % | 0.99 | % | 1.00 | % | ||||||||||||
Net investment income | 0.78 | %(C) | 0.51 | % | 0.36 | % | 0.23 | % | 0.75 | % | 0.25 | % | ||||||||||||
Portfolio turnover rate | 9 | %(B) | 25 | % | 46 | % | 19 | % | 19 | % | 17 | % |
(A) | The net investment income per share was based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
83
Financial Highlights(Continued)
Touchstone Mid Cap Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.91 | $ | 18.71 | $ | 19.36 | $ | 17.49 | $ | 15.70 | $ | 16.60 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.12 | 0.07 | 0.04 | 0.09 | (A) | 0.12 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (4.17 | ) | (0.06 | ) | 0.48 | 2.47 | 2.76 | (0.28 | ) | |||||||||||||||
Total from investment operations | (4.10 | ) | 0.06 | 0.55 | 2.51 | 2.85 | (0.16 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.10 | ) | (0.06 | ) | (0.03 | ) | (0.10 | ) | (0.10 | ) | ||||||||||||
Realized capital gains | — | (0.76 | ) | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | |||||||||||||
Total distributions | (0.05 | ) | (0.86 | ) | (1.20 | ) | (0.64 | ) | (1.06 | ) | (0.74 | ) | ||||||||||||
Net asset value at end of period | $ | 13.76 | $ | 17.91 | $ | 18.71 | $ | 19.36 | $ | 17.49 | $ | 15.70 | ||||||||||||
Total return(B) | (22.94 | %)(C) | 0.81 | % | 2.80 | % | 14.62 | % | 19.20 | % | (1.14 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 8,006 | $ | 10,866 | $ | 17,217 | $ | 21,001 | $ | 21,867 | $ | 7,663 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.22 | %(D) | 1.22 | % | 1.25 | % | 1.27 | % | 1.27 | % | 1.29 | % | ||||||||||||
Gross expenses | 1.55 | %(D) | 1.53 | % | 1.48 | % | 1.47 | % | 1.59 | % | 1.66 | % | ||||||||||||
Net investment income | 0.69 | %(D) | 0.59 | % | 0.32 | % | 0.19 | % | 0.56 | % | 0.55 | % | ||||||||||||
Portfolio turnover rate | 20 | %(C) | 34 | % | 31 | % | 43 | % | 45 | % | 54 | % |
Touchstone Mid Cap Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.37 | $ | 18.20 | $ | 18.94 | $ | 17.23 | $ | 15.49 | $ | 16.42 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.07 | ) | (0.12 | ) | (0.13 | ) | (0.06 | ) | (0.03 | )(A) | (0.04 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (3.96 | ) | 0.05 | 0.53 | 2.38 | 2.73 | (0.25 | ) | ||||||||||||||||
Total from investment operations | (4.03 | ) | (0.07 | ) | 0.40 | 2.32 | 2.70 | (0.29 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | — | (0.76 | ) | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | |||||||||||||
Total distributions | — | (0.76 | ) | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | |||||||||||||
Net asset value at end of period | $ | 13.34 | $ | 17.37 | $ | 18.20 | $ | 18.94 | $ | 17.23 | $ | 15.49 | ||||||||||||
Total return(B) | (23.20 | %)(C) | 0.06 | % | 2.04 | % | 13.78 | % | 18.32 | % | (1.91 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 3,469 | $ | 5,378 | $ | 7,755 | $ | 10,758 | $ | 4,088 | $ | 1,752 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.97 | %(D) | 1.97 | % | 2.01 | % | 2.02 | % | 2.02 | % | 2.04 | % | ||||||||||||
Gross expenses | 2.43 | %(D) | 2.40 | % | 2.31 | % | 2.33 | % | 2.75 | % | 2.83 | % | ||||||||||||
Net investment loss | (0.06 | %)(D) | (0.17 | %) | (0.43 | %) | (0.56 | %) | (0.19 | %) | (0.20 | %) | ||||||||||||
Portfolio turnover rate | 20 | %(C) | 34 | % | 31 | % | 43 | % | 45 | % | 54 | % |
(A) | The net investment income per share was based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
84
Financial Highlights(Continued)
Touchstone Mid Cap Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.99 | $ | 18.79 | $ | 19.45 | $ | 17.57 | $ | 15.76 | $ | 16.67 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.14 | 0.11 | 0.08 | 0.13 | (A) | 0.14 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (4.18 | ) | (0.04 | ) | 0.48 | 2.49 | 2.78 | (0.27 | ) | |||||||||||||||
Total from investment operations | (4.10 | ) | 0.10 | 0.59 | 2.57 | 2.91 | (0.13 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.14 | ) | (0.11 | ) | (0.08 | ) | (0.14 | ) | (0.14 | ) | ||||||||||||
Realized capital gains | — | (0.76 | ) | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | |||||||||||||
Total distributions | (0.07 | ) | (0.90 | ) | (1.25 | ) | (0.69 | ) | (1.10 | ) | (0.78 | ) | ||||||||||||
Net asset value at end of period | $ | 13.82 | $ | 17.99 | $ | 18.79 | $ | 19.45 | $ | 17.57 | $ | 15.76 | ||||||||||||
Total return | (22.83 | %)(B) | 1.08 | % | 3.00 | % | 14.91 | % | 19.51 | % | (0.91 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 248,231 | $ | 286,407 | $ | 337,247 | $ | 322,979 | $ | 292,978 | $ | 208,525 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.97 | %(C) | 0.97 | % | 1.00 | % | 1.02 | % | 1.03 | % | 1.04 | % | ||||||||||||
Gross expenses | 1.23 | %(C) | 1.19 | % | 1.05 | % | 1.10 | % | 1.13 | % | 1.13 | % | ||||||||||||
Net investment income | 0.94 | %(C) | 0.84 | % | 0.57 | % | 0.43 | % | 0.81 | % | 0.81 | % | ||||||||||||
Portfolio turnover rate | 20 | %(B) | 34 | % | 31 | % | 43 | % | 45 | % | 54 | % |
Touchstone Mid Cap Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 18.09 | $ | 18.89 | $ | 19.54 | $ | 17.64 | $ | 15.82 | $ | 16.73 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.17 | 0.12 | 0.09 | 0.16 | (A) | 0.17 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (4.21 | ) | (0.04 | ) | 0.50 | 2.52 | 2.78 | (0.27 | ) | |||||||||||||||
Total from investment operations | (4.12 | ) | 0.13 | 0.62 | 2.61 | 2.94 | (0.10 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.17 | ) | (0.13 | ) | (0.10 | ) | (0.16 | ) | (0.17 | ) | ||||||||||||
Realized capital gains | — | (0.76 | ) | (1.14 | ) | (0.61 | ) | (0.96 | ) | (0.64 | ) | |||||||||||||
Total distributions | (0.07 | ) | (0.93 | ) | (1.27 | ) | (0.71 | ) | (1.12 | ) | (0.81 | ) | ||||||||||||
Net asset value at end of period | $ | 13.90 | $ | 18.09 | $ | 18.89 | $ | 19.54 | $ | 17.64 | $ | 15.82 | ||||||||||||
Total return | (22.77 | %)(B) | 1.20 | % | 3.17 | % | 15.04 | % | 19.71 | % | (0.76 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 345,953 | $ | 453,198 | $ | 431,412 | $ | 334,083 | $ | 185,989 | $ | 124,592 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.84 | %(C) | 0.84 | % | 0.87 | % | 0.89 | % | 0.89 | % | 0.89 | % | ||||||||||||
Gross expenses | 0.97 | %(C) | 0.97 | % | 0.99 | % | 1.01 | % | 1.03 | % | 1.03 | % | ||||||||||||
Net investment income | 1.07 | %(C) | 0.97 | % | 0.70 | % | 0.57 | % | 0.94 | % | 0.96 | % | ||||||||||||
Portfolio turnover rate | 20 | %(B) | 34 | % | 31 | % | 43 | % | 45 | % | 54 | % |
(A) | The net investment income per share was based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
85
Financial Highlights(Continued)
Touchstone Sands Capital Select Growth Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 13.12 | $ | 17.73 | $ | 16.58 | $ | 16.14 | $ | 16.48 | $ | 18.15 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.06 | ) | (0.21 | ) | (0.34 | ) | (0.28 | ) | (0.15 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.13 | (0.72 | ) | 4.72 | 2.94 | 1.47 | (0.64 | ) | ||||||||||||||||
Total from investment operations | 0.11 | (0.78 | ) | 4.51 | 2.60 | 1.19 | (0.79 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (2.37 | ) | (3.83 | ) | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | ||||||||||||
Net asset value at end of period | $ | 10.86 | $ | 13.12 | $ | 17.73 | $ | 16.58 | $ | 16.14 | $ | 16.48 | ||||||||||||
Total return(A) | (0.18 | %)(B) | (1.75 | %) | 33.03 | % | 19.63 | % | 7.17 | % | (4.70 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 81,033 | $ | 89,299 | $ | 97,583 | $ | 89,860 | $ | 138,315 | $ | 230,783 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(C) | 1.30 | %(D) | 1.44 | % | 1.43 | % | 1.23 | % | 1.07 | % | 1.10 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(E) | 1.30 | %(D) | 1.44 | % | 1.43 | % | 1.25 | % | 1.09 | % | 1.10 | % | ||||||||||||
Net investment loss | (0.88 | %)(D) | (1.23 | %) | (1.28 | %) | (0.95 | %) | (0.81 | %) | (0.65 | %) | ||||||||||||
Portfolio turnover rate | 22 | %(B)(F) | 25 | %(F) | 21 | %(F) | 22 | % | 46 | % | 29 | % |
Touchstone Sands Capital Select Growth Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.52 | $ | 16.20 | $ | 15.51 | $ | 15.36 | $ | 15.86 | $ | 17.62 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.01 | ) | (0.51 | ) | (0.24 | ) | (0.79 | ) | (0.52 | ) | (0.30 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.08 | (0.34 | ) | 4.29 | 3.10 | 1.55 | (0.58 | ) | ||||||||||||||||
Total from investment operations | 0.07 | (0.85 | ) | 4.05 | 2.31 | 1.03 | (0.88 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (2.37 | ) | (3.83 | ) | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | ||||||||||||
Net asset value at end of period | $ | 9.22 | $ | 11.52 | $ | 16.20 | $ | 15.51 | $ | 15.36 | $ | 15.86 | ||||||||||||
Total return(A) | (0.40 | %)(B) | (2.44 | %) | 32.11 | % | 18.77 | % | 6.32 | % | (5.38 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 41,808 | $ | 50,079 | $ | 80,444 | $ | 73,516 | $ | 111,951 | $ | 163,237 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(C) | 2.05 | %(D) | 2.19 | % | 2.18 | % | 1.98 | % | 1.82 | % | 1.85 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(E) | 2.08 | %(D) | 2.21 | % | 2.19 | % | 2.01 | % | 1.84 | % | 1.85 | % | ||||||||||||
Net investment loss | (1.63 | %)(D) | (1.98 | %) | (2.03 | %) | (1.70 | %) | (1.56 | %) | (1.40 | %) | ||||||||||||
Portfolio turnover rate | 22 | %(B)(F) | 25 | %(F) | 21 | %(F) | 22 | % | 46 | % | 29 | % |
(A) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | The ratio of net expenses to average net assets excluding liquidity provider expenses for Class A were 1.25%, 1.40% and 1.42% and for Class C were 2.00%, 2.15% and 2.17% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(D) | Annualized. |
(E) | The ratio of gross expenses to average net assets excluding liquidity provider expenses for Class A were 1.25%, 1.40% and 1.42% and for Class C were 2.03%, 2.17% and 2.18% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(F) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
86
Financial Highlights(Continued)
Touchstone Sands Capital Select Growth Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.14 | $ | 18.73 | $ | 17.29 | $ | 16.70 | $ | 16.96 | $ | 18.61 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.14 | ) | (0.18 | ) | (0.10 | ) | (0.11 | ) | (0.08 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.17 | (0.62 | ) | 4.98 | 2.85 | 1.38 | (0.69 | ) | ||||||||||||||||
Total from investment operations | 0.12 | (0.76 | ) | 4.80 | 2.75 | 1.27 | (0.77 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (2.37 | ) | (3.83 | ) | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | ||||||||||||
Net asset value at end of period | $ | 11.89 | $ | 14.14 | $ | 18.73 | $ | 17.29 | $ | 16.70 | $ | 16.96 | ||||||||||||
Total return | (0.01 | %)(A) | (1.45 | %) | 33.36 | % | 19.89 | % | 7.46 | % | (4.46 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 969,826 | $ | 1,089,979 | $ | 1,556,324 | $ | 1,775,755 | $ | 2,209,841 | $ | 3,198,758 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(B) | 1.05 | %(C)(D) | 1.19 | %(D) | 1.18 | %(D) | 0.98 | % | 0.82 | % | 0.83 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(E) | 1.04 | %(C) | 1.18 | % | 1.17 | % | 0.99 | % | 0.82 | % | 0.83 | % | ||||||||||||
Net investment loss | (0.63 | %)(C) | (0.98 | %) | (1.03 | %) | (0.70 | %) | (0.56 | %) | (0.39 | %) | ||||||||||||
Portfolio turnover rate | 22 | %(A)(F) | 25 | %(F) | 21 | %(F) | 22 | % | 46 | % | 29 | % |
Touchstone Sands Capital Select Growth Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 13.14 | $ | 17.75 | $ | 16.58 | $ | 16.15 | $ | 16.49 | $ | 18.15 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.08 | ) | (0.17 | ) | (0.20 | ) | (0.32 | ) | (0.29 | ) | (0.19 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.19 | (0.61 | ) | 4.73 | 2.91 | 1.48 | (0.59 | ) | ||||||||||||||||
Total from investment operations | 0.11 | (0.78 | ) | 4.53 | 2.59 | 1.19 | (0.78 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (2.37 | ) | (3.83 | ) | (3.36 | ) | (2.16 | ) | (1.53 | ) | (0.88 | ) | ||||||||||||
Net asset value at end of period | $ | 10.88 | $ | 13.14 | $ | 17.75 | $ | 16.58 | $ | 16.15 | $ | 16.49 | ||||||||||||
Total return | (0.17 | %)(A) | (1.69 | %) | 33.10 | % | 19.62 | % | 7.24 | % | (4.70 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 363,716 | $ | 458,996 | $ | 611,071 | $ | 556,651 | $ | 777,930 | $ | 1,292,853 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(B) | 1.29 | %(C) | 1.43 | % | 1.42 | % | 1.22 | % | 1.04 | % | 1.08 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(E) | 1.36 | %(C) | 1.49 | % | 1.47 | % | 1.28 | % | 1.11 | % | 1.13 | % | ||||||||||||
Net investment loss | (0.87 | %)(C) | (1.22 | %) | (1.27 | %) | (0.94 | %) | (0.79 | %) | (0.64 | %) | ||||||||||||
Portfolio turnover rate | 22 | %(A)(F) | 25 | %(F) | 21 | %(F) | 22 | % | 46 | % | 29 | % |
(A) | Not annualized. |
(B) | The ratio of net expenses to average net assets excluding liquidity provider expenses for Class Y were 1.00%, 1.15% and 1.17% and for Class Z were 1.24%, 1.39% and 1.41% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(C) | Annualized. |
(D) | Net expenses include amounts recouped by the Advisor. |
(E) | The ratio of gross expenses to average net assets excluding liquidity provider expenses for Class Y were 0.99%, 1.14% and 1.16% and for Class Z were 1.31%, 1.45% and 1.46% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(F) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
87
Financial Highlights(Continued)
Touchstone Small Cap Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 12.35 | $ | 16.24 | $ | 17.73 | $ | 16.24 | $ | 17.73 | $ | 20.55 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.03 | — | (A) | 0.32 | (B)(C) | 0.02 | — | (A) | 0.15 | (D) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.81 | ) | (0.49 | ) | 1.52 | 1.47 | 0.59 | (1.38 | ) | |||||||||||||||
Total from investment operations | (2.78 | ) | (0.49 | ) | 1.84 | 1.49 | 0.59 | (1.23 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.34 | ) | — | (0.13 | ) | (— | )(A) | |||||||||||||||
Realized capital gains | (1.09 | ) | (3.40 | ) | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | |||||||||||||
Total distributions | (1.09 | ) | (3.40 | ) | (3.33 | ) | — | (2.08 | ) | (1.59 | ) | |||||||||||||
Net asset value at end of period | $ | 8.48 | $ | 12.35 | $ | 16.24 | $ | 17.73 | $ | 16.24 | $ | 17.73 | ||||||||||||
Total return(E) | (24.94 | %)(F) | 0.22 | % | 12.14 | % | 9.17 | % | 3.74 | % | (6.36 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 2,636 | $ | 3,750 | $ | 8,142 | $ | 12,461 | $ | 37,942 | $ | 62,423 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(G) | 1.27 | %(H) | 1.39 | % | 1.39 | % | 1.38 | % | 1.38 | % | 1.38 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(I) | 2.12 | %(H) | 2.01 | % | 1.65 | % | 1.52 | % | 1.45 | % | 1.42 | % | ||||||||||||
Net investment income | 0.51 | %(H) | 0.02 | % | 1.99 | %(B) | 0.00 | %(A) | 0.00 | %(A) | 0.75 | %(D) | ||||||||||||
Portfolio turnover rate | 11 | %(F)(J) | 17 | %(J) | 29 | %(J) | 18 | % | 17 | % | 42 | % |
(A) | Less than $0.005 per share or 0.005%. |
(B) | Includes impact of special dividend from Alexander & Baldwin Inc. in January, 2018 as part of the company's conversion to a real estate investment trust. This special dividend enhanced the net investment income per share and ratio of net investment income for Class A by $0.34 and 2.10%, respectively. |
(C) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(D) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(E) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(F) | Not annualized. |
(G) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 1.24%, 1.34% and 1.38% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(H) | Annualized. |
(I) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 2.09%, 1.96% and 1.64% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(J) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
88
Financial Highlights(Continued)
Touchstone Small Cap Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.41 | $ | 15.40 | $ | 16.94 | $ | 15.63 | $ | 17.16 | $ | 20.07 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.10 | ) | 0.19 | (A)(B) | (0.31 | ) | (0.16 | ) | — | (C)(D) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (2.51 | ) | (0.49 | ) | 1.45 | 1.62 | 0.60 | (1.32 | ) | |||||||||||||||
Total from investment operations | (2.57 | ) | (0.59 | ) | 1.64 | 1.31 | 0.44 | (1.32 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.19 | ) | — | (0.02 | ) | — | ||||||||||||||||
Realized capital gains | (1.09 | ) | (3.40 | ) | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | |||||||||||||
Total distributions | (1.09 | ) | (3.40 | ) | (3.18 | ) | — | (1.97 | ) | (1.59 | ) | |||||||||||||
Net asset value at end of period | $ | 7.75 | $ | 11.41 | $ | 15.40 | $ | 16.94 | $ | 15.63 | $ | 17.16 | ||||||||||||
Total return(E) | (25.17 | %)(F) | (0.58 | %) | 11.33 | % | 8.38 | % | 2.92 | % | (7.01 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,686 | $ | 3,356 | $ | 6,299 | $ | 9,266 | $ | 14,957 | $ | 21,562 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(G) | 2.02 | %(H) | 2.14 | % | 2.14 | % | 2.13 | % | 2.13 | % | 2.13 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(I) | 2.82 | %(H) | 2.64 | % | 2.40 | % | 2.28 | % | 2.23 | % | 2.17 | % | ||||||||||||
Net investment income (loss) | (0.24 | %)(H) | (0.73 | %) | 1.24 | %(A) | (0.75 | %) | (0.75 | %) | 0.00 | %(C)(D) | ||||||||||||
Portfolio turnover rate | 11 | %(F)(J) | 17 | %(J) | 29 | %(J) | 18 | % | 17 | % | 42 | % |
(A) | Includes impact of special dividend from Alexander & Baldwin Inc. in January, 2018 as part of the company's conversion to a real estate investment trust. This special dividend enhanced the net investment income per share and ratio of net investment income for Class C by $0.32 and 2.10%, respectively. |
(B) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(C) | Less than $0.005 per share or 0.005%. |
(D) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(E) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(F) | Not annualized. |
(G) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 1.99%, 2.09% and 2.13% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(H) | Annualized. |
(I) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 2.79%, 2.59% and 2.39% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(J) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
89
Financial Highlights(Continued)
Touchstone Small Cap Fund—ClassY
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 12.59 | $ | 16.45 | $ | 17.94 | $ | 16.44 | $ | 17.93 | $ | 20.72 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.04 | 0.37 | (A)(B) | 0.05 | 0.05 | 0.18 | (C) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.86 | ) | (0.50 | ) | 1.53 | 1.50 | 0.58 | (1.37 | ) | |||||||||||||||
Total from investment operations | (2.82 | ) | (0.46 | ) | 1.90 | 1.55 | 0.63 | (1.19 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | — | (0.40 | ) | (0.05 | ) | (0.17 | ) | (0.01 | ) | |||||||||||||
Realized capital gains | (1.09 | ) | (3.40 | ) | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | |||||||||||||
Total distributions | (1.11 | ) | (3.40 | ) | (3.39 | ) | (0.05 | ) | (2.12 | ) | (1.60 | ) | ||||||||||||
Net asset value at end of period | $ | 8.66 | $ | 12.59 | $ | 16.45 | $ | 17.94 | $ | 16.44 | $ | 17.93 | ||||||||||||
Total return | (24.80 | %)(D) | 0.44 | % | 12.44 | % | 9.46 | % | 3.97 | % | (6.11 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 28,678 | $ | 34,709 | $ | 51,218 | $ | 84,954 | $ | 295,198 | $ | 333,971 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(E) | 1.02 | %(F) | 1.14 | % | 1.14 | % | 1.13 | % | 1.13 | % | 1.11 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(G) | 1.32 | %(F) | 1.31 | % | 1.17 | % | 1.15 | % | 1.14 | % | 1.11 | % | ||||||||||||
Net investment income | 0.76 | %(F) | 0.27 | % | 2.24 | %(A) | 0.25 | % | 0.25 | % | 1.02 | %(C) | ||||||||||||
Portfolio turnover rate | 11 | %(D)(H) | 17 | %(H) | 29 | %(H) | 18 | % | 17 | % | 42 | % |
(A) | Includes impact of special dividend from Alexander & Baldwin Inc. in January, 2018 as part of the company's conversion to a real estate investment trust. This special dividend enhanced the net investment income per share and ratio of net investment income for Class Y by $0.34 and 2.10%, respectively. |
(B) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(C) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class Y net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.99%, 1.09% and 1.13% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 1.29%, 1.26% and 1.16% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(H) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
90
Financial Highlights(Continued)
Touchstone Small Cap Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 12.55 | $ | 16.40 | $ | 17.93 | $ | 16.43 | $ | 17.92 | $ | 20.69 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.05 | 0.06 | 0.38 | (A)(B) | 0.16 | 0.07 | 0.24 | (C) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | (2.84 | ) | (0.51 | ) | 1.53 | 1.41 | 0.57 | (1.41 | ) | |||||||||||||||
Total from investment operations | (2.79 | ) | (0.45 | ) | 1.91 | 1.57 | 0.64 | (1.17 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | — | (0.45 | ) | (0.07 | ) | (0.18 | ) | (0.01 | ) | |||||||||||||
Realized capital gains | (1.09 | ) | (3.40 | ) | (2.99 | ) | — | (1.95 | ) | (1.59 | ) | |||||||||||||
Total distributions | (1.13 | ) | (3.40 | ) | (3.44 | ) | (0.07 | ) | (2.13 | ) | (1.60 | ) | ||||||||||||
Net asset value at end of period | $ | 8.63 | $ | 12.55 | $ | 16.40 | $ | 17.93 | $ | 16.43 | $ | 17.92 | ||||||||||||
Total return | (24.78 | %)(D) | 0.54 | % | 12.52 | % | 9.57 | % | 4.05 | % | (6.01 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 26,481 | $ | 36,691 | $ | 93,636 | $ | 122,876 | $ | 255,422 | $ | 301,868 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including liquidity provider expenses)(E) | 0.94 | %(F) | 1.06 | % | 1.06 | % | 1.05 | % | 1.04 | % | 1.04 | % | ||||||||||||
Gross expenses (including liquidity provider expenses)(G) | 1.21 | %(F) | 1.20 | % | 1.10 | % | 1.05 | % | 1.04 | % | 1.04 | % | ||||||||||||
Net investment income | 0.84 | %(F) | 0.35 | % | 2.32 | %(A) | 0.34 | % | 0.34 | % | 1.10 | %(C) | ||||||||||||
Portfolio turnover rate | 11 | %(D)(H) | 17 | %(H) | 29 | %(H) | 18 | % | 17 | % | 42 | % |
(A) | Includes impact of special dividend from Alexander & Baldwin Inc. in January, 2018 as part of the company's conversion to a real estate investment trust. This special dividend enhanced the net investment income per share and ratio of net investment income for Institutional Class by $0.34 and 2.10%, respectively. |
(B) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(C) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Institutional Class net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding liquidity provider expenses was 0.91%, 1.01% and 1.05% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding liquidity provider expenses was 1.18%, 1.15% and 1.09% for the six months ended March 31, 2020 and for the years ended September 30, 2019 and 2018, respectively. There were no liquidity provider expenses prior to 2018. |
(H) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
91
Financial Highlights (Continued)
Touchstone Small Cap Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 24.00 | $ | 27.91 | $ | 26.06 | $ | 22.20 | $ | 20.17 | $ | 23.23 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.11 | 0.02 | 0.03 | 0.23 | 0.36 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (6.78 | ) | (2.29 | ) | 1.83 | 3.85 | 2.80 | (2.15 | ) | |||||||||||||||
Total from investment operations | (6.74 | ) | (2.18 | ) | 1.85 | 3.88 | 3.03 | (1.79 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.03 | ) | — | (A) | (0.02 | ) | (0.27 | ) | (0.35 | ) | ||||||||||||
Realized capital gains | — | (1.70 | ) | — | — | (0.73 | ) | (0.92 | ) | |||||||||||||||
Total distributions | (0.06 | ) | (1.73 | ) | — | (A) | (0.02 | ) | (1.00 | ) | (1.27 | ) | ||||||||||||
Net asset value at end of period | $ | 17.20 | $ | 24.00 | $ | 27.91 | $ | 26.06 | $ | 22.20 | $ | 20.17 | ||||||||||||
Total return(B) | (28.16 | %)(C) | (7.37 | %) | 7.12 | % | 17.46 | % | 15.63 | % | (8.32 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 15,291 | $ | 24,389 | $ | 83,139 | $ | 76,884 | $ | 150,081 | $ | 24,659 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.38 | %(D) | 1.38 | % | 1.38 | % | 1.38 | % | 1.38 | % | 1.38 | % | ||||||||||||
Gross expenses | 1.67 | %(D) | 1.68 | % | 1.75 | % | 1.83 | % | 1.67 | % | 1.60 | % | ||||||||||||
Net investment income | 0.24 | %(D) | 0.19 | % | 0.09 | % | 0.07 | % | 1.05 | % | 1.51 | % | ||||||||||||
Portfolio turnover rate | 20 | %(C) | 28 | % | 49 | %(E)(F) | 63 | %(F) | 155 | % | 112 | % |
Touchstone Small Cap Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 23.21 | $ | 27.22 | $ | 25.60 | $ | 21.95 | $ | 19.98 | $ | 23.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.41 | ) | (0.11 | ) | (0.22 | ) | 0.06 | 0.17 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (6.51 | ) | (1.90 | ) | 1.73 | 3.87 | 2.77 | (2.10 | ) | |||||||||||||||
Total from investment operations | (6.59 | ) | (2.31 | ) | 1.62 | 3.65 | 2.83 | (1.93 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | — | — | — | (0.13 | ) | (0.17 | ) | |||||||||||||||
Realized capital gains | — | (1.70 | ) | — | — | (0.73 | ) | (0.92 | ) | |||||||||||||||
Total distributions | (0.02 | ) | (1.70 | ) | — | — | (0.86 | ) | (1.09 | ) | ||||||||||||||
Net asset value at end of period | $ | 16.60 | $ | 23.21 | $ | 27.22 | $ | 25.60 | $ | 21.95 | $ | 19.98 | ||||||||||||
Total return(B) | (28.43 | %)(C) | (8.07 | %) | 6.29 | % | 16.63 | % | 14.72 | % | (9.01 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 549 | $ | 788 | $ | 1,433 | $ | 1,223 | $ | 1,376 | $ | 1,396 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.13 | %(D) | 2.13 | % | 2.13 | % | 2.13 | % | 2.13 | % | 2.13 | % | ||||||||||||
Gross expenses | 4.15 | %(D) | 3.57 | % | 3.66 | % | 3.69 | % | 3.39 | % | 3.13 | % | ||||||||||||
Net investment income (loss) | (0.51 | %)(D) | (0.56 | %) | (0.66 | %) | (0.68 | %) | 0.30 | % | 0.76 | % | ||||||||||||
Portfolio turnover rate | 20 | %(C) | 28 | % | 49 | %(E)(F) | 63 | %(F) | 155 | % | 112 | % |
(A) | Less than $0.005 per share. |
(B) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Small Cap Value Opportunities Fund acquired on September 21, 2018. If these transactions were included, portfolio turnover would have been higher. |
(F) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
92
Financial Highlights(Continued)
Touchstone Small Cap Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 24.05 | $ | 27.96 | $ | 26.14 | $ | 22.24 | $ | 20.20 | $ | 23.25 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.06 | 0.10 | 0.15 | 0.06 | 0.24 | 0.42 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (6.78 | ) | (2.23 | ) | 1.78 | 3.88 | 2.84 | (2.14 | ) | |||||||||||||||
Total from investment operations | (6.72 | ) | (2.13 | ) | 1.93 | 3.94 | 3.08 | (1.72 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.08 | ) | (0.11 | ) | (0.04 | ) | (0.31 | ) | (0.41 | ) | ||||||||||||
Realized capital gains | — | (1.70 | ) | — | — | (0.73 | ) | (0.92 | ) | |||||||||||||||
Total distributions | (0.09 | ) | (1.78 | ) | (0.11 | ) | (0.04 | ) | (1.04 | ) | (1.33 | ) | ||||||||||||
Net asset value at end of period | $ | 17.24 | $ | 24.05 | $ | 27.96 | $ | 26.14 | $ | 22.24 | $ | 20.20 | ||||||||||||
Total return | (28.05 | %)(A) | (7.16 | %) | 7.41 | % | 17.80 | % | 15.86 | % | (8.08 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 21,086 | $ | 24,921 | $ | 41,365 | $ | 2,829 | $ | 3,080 | $ | 4,419 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.13 | %(B) | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | ||||||||||||
Gross expenses | 1.29 | %(B) | 1.30 | % | 1.71 | % | 1.95 | % | 1.70 | % | 1.44 | % | ||||||||||||
Net investment income | 0.49 | %(B) | 0.44 | % | 0.34 | % | 0.32 | % | 1.30 | % | 1.76 | % | ||||||||||||
Portfolio turnover rate | 20 | %(A) | 28 | % | 49 | %(C)(D) | 63 | %(D) | 155 | % | 112 | % |
Touchstone Small Cap Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 24.04 | $ | 27.94 | $ | 26.14 | $ | 22.22 | $ | 20.19 | $ | 23.24 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.18 | 0.28 | (0.06 | ) | 0.30 | 0.45 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (6.79 | ) | (2.27 | ) | 1.69 | 4.04 | 2.80 | (2.13 | ) | |||||||||||||||
Total from investment operations | (6.71 | ) | (2.09 | ) | 1.97 | 3.98 | 3.10 | (1.68 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.11 | ) | (0.17 | ) | (0.06 | ) | (0.34 | ) | (0.45 | ) | ||||||||||||
Realized capital gains | — | (1.70 | ) | — | — | (0.73 | ) | (0.92 | ) | |||||||||||||||
Total distributions | (0.11 | ) | (1.81 | ) | (0.17 | ) | (0.06 | ) | (1.07 | ) | (1.37 | ) | ||||||||||||
Net asset value at end of period | $ | 17.22 | $ | 24.04 | $ | 27.94 | $ | 26.14 | $ | 22.22 | $ | 20.19 | ||||||||||||
Total return | (28.05 | %)(A) | (6.98 | %) | 7.53 | % | 17.93 | % | 16.05 | % | (7.93 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 28,194 | $ | 40,104 | $ | 29,279 | $ | 7,699 | $ | 23,740 | $ | 25,968 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.98 | %(B) | 0.98 | % | 0.98 | % | 0.98 | % | 0.98 | % | 0.98 | % | ||||||||||||
Gross expenses | 1.17 | %(B) | 1.17 | % | 1.27 | % | 1.52 | % | 1.22 | % | 1.19 | % | ||||||||||||
Net investment income | 0.64 | %(B) | 0.59 | % | 0.49 | % | 0.47 | % | 1.45 | % | 1.91 | % | ||||||||||||
Portfolio turnover rate | 20 | %(A) | 28 | % | 49 | %(C)(D) | 63 | %(D) | 155 | % | 112 | % |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Small Cap Value Opportunities Fund acquired on September 21, 2018. If these transactions were included, portfolio turnover would have been higher. |
(D) | Portfolio turnover excludes securities delivered from processing redemptions-in-kind. |
See accompanying Notes to Financial Statements.
93
Financial Highlights(Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.10 | 0.23 | 0.16 | 0.13 | 0.10 | 0.06 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.28 | ) | 0.04 | (0.01 | ) | (0.02 | ) | 0.02 | (0.03 | ) | ||||||||||||||
Total from investment operations | (0.18 | ) | 0.27 | 0.15 | 0.11 | 0.12 | 0.03 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.23 | ) | (0.19 | ) | (0.14 | ) | (0.12 | ) | (0.12 | ) | ||||||||||||
Net asset value at end of period | $ | 9.00 | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | ||||||||||||
Total return(A) | (2.01 | %)(B) | 2.95 | % | 1.50 | % | 1.29 | % | 1.35 | % | 0.31 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 65,176 | $ | 71,684 | $ | 76,623 | $ | 14,080 | $ | 16,946 | $ | 10,675 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.69 | %(C) | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||||||
Gross expenses | 0.79 | %(C) | 0.80 | % | 0.81 | % | 0.90 | % | 0.97 | % | 0.99 | % | ||||||||||||
Net investment income | 2.14 | %(C) | 2.43 | % | 1.88 | % | 1.40 | % | 1.09 | % | 0.54 | % | ||||||||||||
Portfolio turnover rate | 36 | %(B) | 91 | % | 143 | %(D) | 136 | % | 169 | % | 132 | % |
Touchstone Ultra Short Duration Fixed Income Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.18 | 0.13 | 0.08 | 0.06 | — | (E) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.28 | ) | 0.04 | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | ||||||||||||||
Total from investment operations | (0.21 | ) | 0.22 | 0.10 | 0.06 | 0.08 | (0.02 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.18 | ) | (0.14 | ) | (0.09 | ) | (0.08 | ) | (0.07 | ) | ||||||||||||
Net asset value at end of period | $ | 9.00 | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | ||||||||||||
Total return(A) | (2.26 | %)(B) | 2.45 | % | 1.00 | % | 0.77 | % | 0.84 | % | (0.19 | %) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 5,220 | $ | 4,225 | $ | 4,492 | $ | 5,704 | $ | 7,961 | $ | 8,291 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.19 | %(C) | 1.19 | % | 1.19 | % | 1.19 | % | 1.19 | % | 1.19 | % | ||||||||||||
Gross expenses | 1.65 | %(C) | 1.71 | % | 1.67 | % | 1.56 | % | 1.54 | % | 1.48 | % | ||||||||||||
Net investment income | 1.64 | %(C) | 1.93 | % | 1.38 | % | 0.90 | % | 0.59 | % | 0.04 | % | ||||||||||||
Portfolio turnover rate | 36 | %(B) | 91 | % | 143 | %(D) | 136 | % | 169 | % | 132 | % |
(A) | Total returns shown exclude the effect of applicable sales loads and fees. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Low Duration Bond Fund acquired on October 27, 2017. If these transactions were included, portfolio turnover would have been higher. |
(E) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
94
Financial Highlights(Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class S
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended | Period Ended | ||||||||||
2020 | September 30, | September 30, | ||||||||||
(Unaudited) | 2019 | 2018(A) | ||||||||||
Net asset value at beginning of period | $ | 9.28 | $ | 9.25 | $ | 9.29 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income | 0.08 | 0.21 | 0.13 | |||||||||
Net realized and unrealized losses on investments | (0.27 | ) | 0.03 | (0.02 | ) | |||||||
Total from investment operations | (0.19 | ) | 0.24 | 0.11 | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.09 | ) | (0.21 | ) | (0.15 | ) | ||||||
Net asset value at end of period | $ | 9.00 | $ | 9.28 | $ | 9.25 | ||||||
Total return | (2.03 | %)(B) | 2.59 | % | 1.24 | %(B) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 127,333 | $ | 135,565 | $ | 141,918 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses | 0.94 | %(C) | 0.94 | % | 0.94 | %(C) | ||||||
Gross expenses | 0.99 | %(C) | 0.99 | % | 0.99 | %(C) | ||||||
Net investment income | 1.89 | %(C) | 2.18 | % | 1.63 | %(C) | ||||||
Portfolio turnover rate | 36 | %(B) | 91 | % | 143 | %(D) |
Touchstone Ultra Short Duration Fixed Income Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.25 | 0.20 | 0.15 | 0.13 | 0.07 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.28 | ) | 0.04 | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | ||||||||||||||
Total from investment operations | (0.17 | ) | 0.29 | 0.17 | 0.13 | 0.15 | 0.05 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.25 | ) | (0.21 | ) | (0.16 | ) | (0.15 | ) | (0.14 | ) | ||||||||||||
Net asset value at end of period | $ | 9.00 | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | ||||||||||||
Total return | (1.89 | %)(B) | 3.21 | % | 1.75 | % | 1.55 | % | 1.60 | % | 0.56 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 291,929 | $ | 305,997 | $ | 262,571 | $ | 260,830 | $ | 206,313 | $ | 200,456 | ||||||||||||
Ratio to average net assets: | 0.44 | %(C) | 0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | 0.44 | % | ||||||||||||
Net expenses | ||||||||||||||||||||||||
Gross expenses | 0.51 | %(C) | 0.51 | % | 0.50 | % | 0.51 | % | 0.53 | % | 0.52 | % | ||||||||||||
Net investment income | 2.39 | %(C) | 2.68 | % | 2.13 | % | 1.65 | % | 1.34 | % | 0.79 | % | ||||||||||||
Portfolio turnover rate | 36 | %(B) | 91 | % | 143 | %(D) | 136 | % | 169 | % | 132 | % |
(A) | Represents the period from commencement of operations (October 27, 2017) through September 30, 2018. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Low Duration Bond Fund acquired on October 27, 2017. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
95
Financial Highlights(Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.23 | 0.18 | 0.13 | 0.10 | 0.05 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.29 | ) | 0.04 | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | ||||||||||||||
Total from investment operations | (0.18 | ) | 0.27 | 0.15 | 0.11 | 0.12 | 0.03 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.23 | ) | (0.19 | ) | (0.14 | ) | (0.12 | ) | (0.12 | ) | ||||||||||||
Net asset value at end of period | $ | 9.00 | $ | 9.29 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | ||||||||||||
Total return | (2.01 | %)(A) | 2.95 | % | 1.50 | % | 1.29 | % | 1.35 | % | 0.31 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 90,912 | $ | 128,199 | $ | 163,898 | $ | 211,797 | $ | 245,252 | $ | 304,553 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.69 | %(B) | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||||||
Gross expenses | 0.79 | %(B) | 0.77 | % | 0.78 | % | 0.78 | % | 0.79 | % | 0.76 | % | ||||||||||||
Net investment income | 2.14 | %(B) | 2.43 | % | 1.88 | % | 1.40 | % | 1.09 | % | 0.54 | % | ||||||||||||
Portfolio turnover rate | 36 | %(A) | 91 | % | 143 | %(C) | 136 | % | 169 | % | 132 | % |
Touchstone Ultra Short Duration Fixed Income Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2020 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.28 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | $ | 9.41 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.26 | 0.21 | 0.16 | 0.13 | 0.08 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.28 | ) | 0.03 | (0.03 | ) | (0.02 | ) | 0.02 | (0.02 | ) | ||||||||||||||
Total from investment operations | (0.17 | ) | 0.29 | 0.18 | 0.14 | 0.15 | 0.06 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.26 | ) | (0.22 | ) | (0.17 | ) | (0.15 | ) | (0.15 | ) | ||||||||||||
Net asset value at end of period | $ | 8.99 | $ | 9.28 | $ | 9.25 | $ | 9.29 | $ | 9.32 | $ | 9.32 | ||||||||||||
Total return | (1.86 | %)(A) | 3.17 | % | 1.80 | % | 1.60 | % | 1.54 | % | 0.61 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 389,468 | $ | 362,921 | $ | 275,561 | $ | 257,777 | $ | 142,913 | $ | 49,389 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.39 | %(B) | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||||
Gross expenses | 0.45 | %(B) | 0.46 | % | 0.46 | % | 0.45 | % | 0.46 | % | 0.48 | % | ||||||||||||
Net investment income | 2.44 | %(B) | 2.73 | % | 2.18 | % | 1.70 | % | 1.39 | % | 0.84 | % | ||||||||||||
Portfolio turnover rate | 36 | %(A) | 91 | % | 143 | %(C) | 136 | % | 169 | % | 132 | % |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes the purchases and sales of securities of the Sentinel Low Duration Bond Fund acquired on October 27, 2017. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
96
March 31, 2020 (Unaudited)
1. Organization
The Touchstone Funds Group Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated October 25, 1993. The Trust consists of the following thirteen funds (individually, a “Fund,” and collectively, the “Funds”):
Touchstone Active Bond Fund (“Active Bond Fund”)
Touchstone Anti-Benchmark® International Core Equity Fund (“Anti-Benchmark® International Core Equity Fund”)
Touchstone Anti-Benchmark® US Core Equity Fund (“Anti-Benchmark® US Core Equity Fund”)
Touchstone Credit Opportunities II Fund (“Credit Opportunities II Fund”)
Touchstone High Yield Fund (“High Yield Fund”)
Touchstone Impact Bond Fund (“Impact Bond Fund”)
Touchstone International ESG Equity Fund (“International ESG Equity Fund”)
Touchstone Mid Cap Fund (“Mid Cap Fund”)
Touchstone Mid Cap Value Fund (“Mid Cap Value Fund”)
Touchstone Sands Capital Select Growth Fund (“Sands Capital Select Growth Fund”)
Touchstone Small Cap Fund (“Small Cap 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 diversified, with the exception of the Credit Opportunities II Fund, the Sands Capital Select Growth Fund and the Small Cap Fund, which are non-diversified.
The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
Institutional | ||||||
Class A | Class C | Class S | Class Y | Class Z | Class | |
Active Bond Fund | X | X | X | X | ||
Anti-Benchmark® International Core Equity Fund | X | X | ||||
Anti-Benchmark® US Core Equity Fund | X | X | ||||
Credit Opportunities II Fund | X | X | X | X | ||
High Yield Fund | X | X | X | X | ||
Impact Bond Fund | X | X | X | X | ||
International ESG Equity Fund | X | X | X | X | ||
Mid Cap Fund | X | X | X | X | X | |
Mid Cap Value Fund | X | X | X | X | ||
Sands Capital Select Growth Fund | X | X | X | X | ||
Small Cap Fund | X | X | X | X | ||
Small Cap Value Fund | X | X | X | X | ||
Ultra Short Duration Fixed Income Fund | X | X | X | X | X | X |
The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment goal, policies, and strategies along with information on the classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements —U.S. generally accepted accounting principles (“U.S. GAAP”) defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their fair value. The Funds define the term “market value”, as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
· | Level 1 – quoted prices in active markets for identical securities |
· | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
97
Notes to Financial Statements(Unaudited) (Continued)
· | Level 3 – significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The aggregate value by input level, as of March 31, 2020, for each Fund’s investments, is included in each Fund’s Portfolio of Investments, which also includes a breakdown of the Fund’s investments by geographic, portfolio or sector allocation. The Credit Opportunities II Fund held Level 3 categorized securities during the six months ended March 31, 2020.
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.
The Funds’ portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (“NYSE”) (currently 4:00 p.m., Eastern Time or at the times as of which the NYSE establishes official closing prices). Portfolio securities traded on stock exchanges are valued at the last reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”) or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Options and futures are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price on the valuation date and are categorized in Level 1. Shares of mutual funds in which the Funds invest are valued at their respective net asset value (“NAV”) as reported by the underlying funds (the “Underlying Funds”) and are categorized in Level 1.
Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. Investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Funds’ valuation policies and procedures approved by the Funds’ Board of Trustees (the “Board”), and are generally categorized in Level 2. Investments in asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche, and are generally categorized in Level 2. Debt securities with remaining maturities of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which fair value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of regular trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available and are categorized in Level 2.
Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and is generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund, to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV. The Funds may use fair value pricing under the following circumstances, among others:
· | If the value of a security has been materially affected by events occurring before the Fund’s pricing time but after the close of the primary markets on which the security is traded. |
· | If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Fund’s NAV calculation. |
· | If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading. |
· | If the validity of market quotations is not reliable. |
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Board and are generally categorized in Level 3.
Bank Loans —The Active Bond Fund, Credit Opportunities II Fund and Ultra Short Duration Fixed Income Fund may invest in bank loans, which usually take the form of loan participations and assignments. Loan participations and assignments are agreements to make money available to U.S. or foreign corporations, partnerships or other business entities (the “Borrower”) in a specified
98
Notes to Financial Statements(Unaudited) (Continued)
amount, at a specified rate and within a specified time. A loan is typically originated, negotiated and structured by a U.S. or foreign bank, insurance company or other financial institution (the “Agent”) for a group of loan investors (“Loan Investors”). The Agent typically administers and enforces the loan on behalf of the other Loan Investors in the syndicate and may hold any collateral on behalf of the Loan Investors. Such loan participations and assignments are typically senior, secured and collateralized in nature. The Fund records an investment when the Borrower withdraws money and records interest as earned. These loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or London Interbank Offered Rate (“LIBOR”).
The loans in which the Fund invests may be subject to some restrictions on resale. For example, the Fund may be contractually obligated to receive approval from the Agent and/or Borrower prior to the sale of these investments. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, the Fund assumes the credit risk of the Borrower, the selling participant and any other persons interpositioned between the Fund and the Borrower (“Intermediate Participants”). In the event that the Borrower, selling participant or Intermediate Participants become insolvent or enter into bankruptcy, the Fund may incur certain costs and delays in realizing payment or may suffer a loss of principal and/or interest.
Unfunded commitments represent the remaining obligation of the Fund to the Borrower. At any point in time, up to the maturity date of the issue, the Borrower may demand the unfunded portion. Until demanded by the Borrower, unfunded commitments are not recognized as an asset on the Statements of Assets and Liabilities. Unrealized appreciation/depreciation on unfunded commitments presented on the Statements of Assets and Liabilities represents fair value of the unfunded portion of the Fund’s bank loans.
As of March 31, 2020, the Funds did not hold any unfunded loan commitments.
Collateralized Loan Obligations —The Active Bond Fund, Credit Opportunities II Fund and Ultra Short Duration Fixed Income Fund may invest in collateralized loan obligations (“CLOs”). CLOs are types of asset-backed securities. A CLO is an entity that is backed by syndicated bank loans. The cash flows of the CLO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CLO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive higher ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.
Investment companies —The Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter (“OTC”). An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund’s fees and expenses.
Securities sold short —The Funds may engage in selling securities short, which obligates the Fund to replace a security borrowed by purchasing the same security at the current market value. The Fund would incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund would realize a gain if the price of the security declines between those dates. As of March 31, 2020, the Credit Opportunities II Fund had securities sold short with a fair value of $(1,028,255), and pledged securities with a fair value of $2,921,400 as collateral and pledged cash collateral of $764,289 for both securities sold short and written options held at the prime broker.
Options —The Funds may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Funds intend to purchase), against fluctuations in fair value caused by changes in prevailing market interest rates or foreign currency exchange rates and against changes in overall equity market volatility. In addition, the Funds may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Funds’ option strategy primarily focuses on the use of writing and/or purchasing call or put options on equity indexes. When the Funds write or purchase an option, an amount equal to the premium received or paid by the Funds is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Funds on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds
99
Notes to Financial Statements(Unaudited) (Continued)
from the sale in determining whether the Funds have realized a gain or loss on investment transactions. The Funds, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bear the market risk of an unfavorable change in the price of the security underlying the written option. The Funds, as purchaser of an option, bear the risk that the counterparties to the option may not have the ability to meet the terms of the option contracts. There is minimal counterparty credit risk involved in entering into option contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default. The maximum risk of loss associated with writing put options is the notional amount as presented in the Portfolio of Investments. In certain circumstances, the maximum risk of loss amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. The maximum risk of loss associated with writing call options is potentially unlimited. As of March 31, 2020, the Credit Opportunities II Fund had written options with a fair value of $(170,000) and pledged securities with a fair value of $2,921,400 as collateral and pledged cash collateral of $764,289 for both securities sold short and written options.
As of March 31, 2020, the Credit Opportunities II Fund held purchased options with a fair value of $447,800.
Warrants —The Funds can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the holder the right to buy stock, typically from the issuer. The warrant specifies the amount of underlying stock, the purchase (or “exercise”) price, and the date the warrant expires. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Funds have no obligation to exercise the warrant and buy the stock.
Futures Contracts —The Active Bond Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund’s exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund’s return. In order to avoid leveraging and related risks, when the Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, in a segregated account with its custodian or otherwise “cover” its position in a manner consistent with the 1940 Act or the rules of the Securities and Exchange Commission (the “SEC”) or interpretations thereunder. Collateral equal to the current fair value of the futures position will be determined on a daily basis.
When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
As of March 31, 2020, the Active Bond Fund did not hold any futures contracts and had cash in the amount of $29,885 held as collateral to cover futures contracts.
Swap Contracts —The Credit Opportunities II Fund may enter into swap transactions to help enhance the value of its portfolio or manage its exposure to different types of investments. Swaps are financial instruments that typically involve the exchange of cash flows between two parties on specified dates (settlement dates), where the cash flows are based on agreed-upon prices, rates, indexes, etc. The nominal amount on which the cash flows are calculated is called the notional amount. Swaps are individually negotiated and structured to include exposure to a variety of different types of investments or market factors, such as interest rates, foreign currency rates, mortgage securities, corporate borrowing rates, security prices, indexes or inflation rates.
Swap agreements may increase or decrease the overall volatility of the investments of a Fund and its share price. The performance of swap agreements may be affected by a change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from a Fund. If a swap agreement calls for payments by a Fund, the Fund must be prepared to make such payments when due. In addition, if the counterparty’s creditworthiness declines, the value of a swap agreement would be likely to decline, potentially resulting in losses.
Generally, bilateral swap agreements, OTC swaps have a fixed maturity date that will be agreed upon by the parties. The agreement can be terminated before the maturity date only under limited circumstances, such as default by one of the parties or insolvency, among others, and can be transferred by a party only with the prior written consent of the other party. A Fund may be able to eliminate its exposure under a swap agreement either by assignment or by other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. If the counterparty is unable to meet its obligations under the contract, declares bankruptcy, defaults or becomes insolvent, a Fund may not be able to recover the money it expected to receive under the contract.
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Notes to Financial Statements(Unaudited) (Continued)
Cleared swaps are transacted through futures commission merchants that are members of central clearinghouses with the clearinghouses serving as a central counterparty. Pursuant to rules promulgated under the Dodd-Frank Act, central clearing of swap agreements is currently required for certain market participants trading certain instruments, and central clearing for additional instruments is expected to be implemented by regulators until the majority of the swaps market is ultimately subject to central clearing.
Swaps are marked-to-market daily based upon values received from third party vendors or quotations from market makers. For OTC swaps, any upfront premiums paid or received are recorded as assets or liabilities, respectively, and are shown as premium paid on swap agreements or premium received on swap agreements in the Statements of Assets and Liabilities. For swaps that are centrally cleared, initial margins, determined by each relevant clearing agency, are posted and are segregated at a broker account registered with the Commodity Futures Trading Commission, or the applicable regulator. The change in value of swaps, including accruals of periodic amounts of interest to be paid or received on swaps, is recorded as unrealized appreciation or depreciation. Daily changes in the value of centrally cleared swaps are recorded in the Statements of Assets and Liabilities as receivable or payable for variation margin on swap agreements and settled daily. Upfront premiums and liquidation payments received or paid are recorded as realized gains or losses at the termination or maturity of the swap. Net periodic payments received or paid by the Fund are recorded as realized gain or loss.
A swap agreement can be a form of leverage, which can magnify the Fund’s gains or losses. In order to reduce the risk associated with leveraging, the Fund may cover its current obligations under swap agreements according to guidelines established by the SEC. If the Fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the Fund’s accrued obligations under the swap agreement over the accrued amount the Fund is entitled to receive under the agreement. If the Fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the Fund’s accrued obligations under the agreement.
As of March 31, 2020, the Credit Opportunities II Fund did not hold any swap agreements.
Foreign currency translation —The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
(1) market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and
(2) purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
Forward foreign currency contracts —A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing a Fund’s total return, and the potential for losses in excess of a Fund’s initial investment.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily and the change in value is recorded by a 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.
For the six months ended March 31, 2020, there were no open forward foreign currency contracts.
Real Estate Investment Trusts —The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks associated with investments in REITs include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Master Limited Partnership —The Funds may invest in Master Limited Partnership (“MLP”) common units that represent limited partnership interests in the MLP. Common units are generally listed and traded on U.S. securities exchanges or OTC with their value fluctuating predominantly based on the success of the MLP. Unlike owners of common stock of a corporation, owners of MLP common units have limited voting rights and have no ability to annually elect directors. MLPs generally distribute all available cash flow (cash flow from operations less maintenance capital expenditures) in the form of quarterly distributions. Common unit
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Notes to Financial Statements(Unaudited) (Continued)
holders have first priority to receive quarterly cash distributions up to the minimum quarterly distribution and have arrearage rights. Distributions received from MLPs generally are comprised of income and return of capital. Investment income and return of capital are recorded based on estimates made at the time distributions are received. The actual amounts of income and return of capital are only determined by each MLP after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined. In the event of liquidation, common unit holders have preference over subordinated units, but not debt holders or preferred unit holders, to the remaining assets of the MLP.
Pay-In-Kind (“PIK”) Bonds —PIK bonds are securities that, at the issuer’s option, pay interest in either cash or additional securities for a specified period. PIK bonds, like zero coupon bonds, are designed to give an issuer flexibility in managing cash flow. PIK bonds are expected to reflect the market value of the underlying debt plus an amount representing accrued interest since the last payment. PIK bonds are usually less volatile than zero coupon bonds, but more volatile than cash pay securities.
Derivative instruments and hedging activities —The Active Bond Fund and the Credit Opportunities II Fund may enter into an International Swaps and Derivatives Associations, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and foreign exchange contracts, and typically contains, among other things, collateral posting terms and master netting provisions in the event of a default or termination. Under an ISDA Master Agreement, a party may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables or receivables with collateral held or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting). These default events include bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset.
When entering into a derivative transaction, a Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange-traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (forward foreign currency contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as cash deposits held at prime broker and due to prime broker, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.
Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event a Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).
For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
As of March 31, 2020, the Funds did not hold any assets and liabilities that were subject to a MNA in the statement of assets and liabilities.
The following table sets forth the fair value of the Fund’s derivative financial instruments by primary risk exposure as of March 31, 2020:
Derivatives not accounted for as hedging | Asset | Liability | ||||||||
Fund | instruments under ASC 815 | Derivatives | Derivatives | |||||||
Credit Opportunities II Fund | Purchased Options-Equity Contracts* | $ | 447,800 | $ | — | |||||
Written Options-Equity Contracts** | — | (170,000 | ) |
*Statements of Assets and Liabilities Location: Investments, at market value.
**Statements of Assets and Liabilities Location: Written options, at market value.
The following table sets forth the effect of the Funds’ derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended March 31, 2020:
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Notes to Financial Statements(Unaudited) (Continued)
Change in | ||||||||||
Unrealized | ||||||||||
Appreciation | ||||||||||
Derivatives not accounted for as hedging | Realized Gain (Loss) | (Depreciation) | ||||||||
Fund | instruments under ASC 815 | on Derivatives | on Derivatives | |||||||
Active Bond Fund | Futures-Interest Rate Contracts* | $ | (1,166,372 | ) | $ | — | ||||
Credit Opportunities II Fund | Purchased Options-Equity Contracts** | (1,168 | ) | 435,755 | ||||||
Written Options-Equity Contracts*** | 27,604 | (104,009 | ) | |||||||
Swap Agreements - Credit Contracts**** | (19,793 | ) | (31,928 | ) |
*Statements of Operations Location: Net realized losses on futures contracts.
**Statements of Operations Location: Net realized gains (losses) on investments and net change in unrealized appreciation (depreciation) on investments, respectively.
***Statements of Operations Location: Net realized gains on written options and net change in unrealized appreciation (depreciation) on written options, respectively.
****Statements of Operations Location: Net realized losses on swap agreements and net change in unrealized appreciation (depreciation) on swap agreements, respectively.
For the six months ended March 31, 2020, the average quarterly balances of outstanding derivative financial instruments were as follows:
Credit | ||||
Opportunities II | ||||
Fund | ||||
Equity contracts: | ||||
Purchased Options - Cost | $ | 96,694 | ||
Written Options - Premiums received | 22,551 | |||
Credit contracts: | ||||
Credit Default Swaps - Notional value | 91,667 |
Portfolio securities loaned —The Funds may lend their portfolio securities. Lending portfolio securities exposes the Funds to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved short-term investment vehicle. The approved short-term investment vehicle is subject to market risk.
As of March 31, 2020, the following Funds loaned securities and received collateral as follows:
Market | Market | |||||||||||
Value of | Value of | |||||||||||
Securities | Collateral | Net | ||||||||||
Fund | Security Type | Loaned* | Received** | Amount*** | ||||||||
Anti-Benchmark® International Core Equity Fund | Common Stocks | $ | 399,027 | $ | 425,240 | $ | 26,213 | |||||
Anti-Benchmark® US Core Equity Fund | Common Stocks | 129,846 | 140,174 | 10,328 | ||||||||
Credit Opportunities II Fund | Corporate Bonds | 393,586 | 474,200 | 80,614 | ||||||||
Impact Bond Fund | Corporate Bonds | 1,106,057 | 1,101,375 | (4,682 | ) | |||||||
Sands Capital Select Growth Fund | Common Stocks | 67,967,840 | 70,027,174 | 2,059,334 |
*The remaining contractual maturity is overnight for all securities.
**Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities.
***Netamount represents the net amount payable due to (receive from) the borrower in the event of default.
All cash collateral is received, held, and administered by the Funds’ custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral in cash equivalents.
Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on daily trading volumes, float, short-term interest rates and market liquidity and is shown net of fees on the Statements of Operations. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.
When-issued or 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
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Notes to Financial Statements(Unaudited) (Continued)
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 NAV. 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.
Share valuation —The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the equity funds (all of the Funds except the Active Bond Fund, High Yield Fund, Impact Bond Fund and Ultra Short Duration Fixed Income Fund) is equal to the NAV per share plus a sales load equal to 5.26% of the NAV (or 5.00% of the offering price). The maximum offering price per share of Class A shares of the fixed income funds (Active Bond Fund, High Yield Fund, Impact Bond Fund and Ultra Short Duration Fixed Income Fund) is equal to the NAV per share plus a sales load equal to 2.04% of the NAV (or 2.00% of the offering price). There is no sales load on equity or fixed income fund purchases when aggregate purchases in all Touchstone funds equal at least $1 million or $500,000, respectively. The maximum offering price per share of Classes C, S, Y, Z, and Institutional Class shares of the Funds is equal to the NAV per share.
The redemption price per share of each class of shares of the Funds is generally equal to the NAV per share. However, Class A redemptions that were part of a no-load purchase due to the aggregate purchase amount in all Touchstone funds equaling at least $1 million for equity funds or $500,000 for fixed income funds where a Finder’s Fee was paid may be subject to a contingent deferred sales charge (“CDSC”) of up to 1.00% or 0.50%, respectively, if redeemed within a one-year period from the date of purchase. Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed.
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 discounts and market premiums on debt securities are accreted/amortized to interest income over the life of the security or to the appropriate call date, as applicable, with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.
Distributions to shareholders —Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. The Anti-Benchmark® International Core Equity Fund, Anti-Benchmark® US Core Equity Fund, International ESG Equity Fund, Mid Cap Fund, and Small Cap Fund distribute their income, if any, annually, as a dividend to shareholders. The Credit Opportunities II Fund, Mid Cap Value Fund, Sands Capital Select Growth Fund, and Small Cap Value Fund declare and distribute their income, if any, quarterly, as a dividend to shareholders. The Active Bond Fund, High Yield Fund and Impact Bond Fund declare and distribute their income, if any, monthly, as a dividend to shareholders. The Ultra Short Duration Fixed Income Fund declares its income, if any, daily, and distributes such income monthly, as a dividend to shareholders. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the Funds’ net investment income from investments in Underlying Funds is affected by the timing of dividend declarations by the Underlying Funds.
Allocations —Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds in the Trust, and, if applicable, Touchstone Institutional Funds Trust, Touchstone Strategic Trust and Touchstone Variable Series Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.
Security transactions —Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
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Notes to Financial Statements(Unaudited) (Continued)
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended March 31, 2020 for all Funds:
Anti- | ||||||||||||||||
Benchmark® | Anti- | Credit | ||||||||||||||
Active | International | Benchmark® | Opportunities | |||||||||||||
Bond | Core Equity | US Core Equity | II | High Yield | ||||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||||
Purchases of investment securities | $ | 78,916,063 | $ | 9,536,296 | $ | 5,928,732 | $ | 54,413,957 | $ | 70,505,133 | ||||||
Proceeds from sales and maturities | $ | 40,527,969 | $ | 9,583,713 | $ | 5,564,667 | $ | 74,795,592 | $ | 68,723,653 |
Impact | International | Mid Cap | Sands Capital | |||||||||||||
Bond | ESG Equity | Mid Cap | Value | Select Growth | ||||||||||||
Fund | Fund | Fund | Fund | Fund* | ||||||||||||
Purchases of investment securities | $ | 19,847,826 | $ | 15,775,717 | $ | 1,254,730,856 | $ | 183,903,571 | $ | 358,151,243 | ||||||
Proceeds from sales and maturities | $ | 8,802,456 | $ | 24,376,407 | $ | 168,838,297 | $ | 152,696,743 | $ | 412,320,513 |
Small Cap | Ultra Short | |||||||||
Small Cap | Value | Duration Fixed | ||||||||
Fund* | Fund | Income Fund | ||||||||
Purchases of investment securities | $ | 12,270,198 | $ | 19,222,135 | $ | 312,479,975 | ||||
Proceeds from sales and maturities | $ | 7,961,110 | $ | 17,198,518 | $ | 298,128,645 |
*Sands Capital Select Growth Fund and Small Cap Fund had redemptions-in-kind out of the Fund of $197,296,405 and $5,829,562, respectively, which are excluded from the proceeds from sales and maturities. The redemptions were comprised of securities and cash in the amount of $184,776,395 and $12,520,010, respectively, for the Sands Capital Select Growth Fund and $4,807,883 and $1,021,679, respectively, for the Small Cap Fund.
For the six months ended March 31, 2020, purchases and proceeds from sales and maturities in U.S. Government Securities were $468,335,879 and $527,903,925, respectively, for the Active Bond Fund, $32,112,028 and $29,281,955, respectively, for the Impact Bond Fund and $15,713,056 and $29,750,912, respectively, for the Ultra Short Duration Fixed Income Fund. There were no purchases or proceeds from sales and maturities of U.S. Government Securities by the remaining Funds for the six months ended March 31, 2020.
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also officers of Touchstone Advisors, Inc. (the “Advisor”), Touchstone Securities, Inc. (the “Underwriter”), or The Bank of New York Mellon (“BNY Mellon”), the Sub-Administrator to the Funds. Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned subsidiaries of Western & Southern Financial Group, Inc. (“Western & Southern”).
On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each Board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $142,345 for the six months ended March 31, 2020.
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under the terms of an advisory agreement (the “Advisory Agreement”). Under the Advisory Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.
Active Bond Fund | 0.40% on the first $300 million | |
0.35% on such assets over $300 million | ||
Anti-Benchmark® International Core Equity Fund | 0.45% on the first $1 billion | |
0.40% on such assets over $1 billion | ||
Anti-Benchmark® US Core Equity Fund | 0.35% on the first $1 billion | |
0.30% on such assets over $1 billion | ||
Credit Opportunities II Fund | 0.60% | |
High Yield Fund | 0.60% on the first $50 million |
105
Notes to Financial Statements(Unaudited) (Continued)
0.50% on the next $250 million | ||
0.45% on such assets over $300 million | ||
Impact Bond Fund | 0.35% | |
International ESG Equity Fund | 0.65% on the first $1 billion | |
0.60% on such assets over $1 billion | ||
Mid Cap Fund | 0.80% on the first $1 billion | |
0.70% on the next $500 million | ||
0.60% on such assets over $1.5 billion | ||
Mid Cap Value Fund | 0.75% | |
Sands Capital Select Growth Fund | 0.85% on the first $1 billion | |
0.80% on the next $500 million | ||
0.75% on the next $500 million | ||
0.70% on such assets over $2 billion | ||
Small Cap Fund | 0.85% on the first $250 million | |
0.80% on the next $250 million | ||
0.70% on such assets over $500 million | ||
Small Cap Value Fund | 0.85% | |
Ultra Short Duration Fixed Income Fund | 0.25% |
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 if the Fund outperforms or underperforms its benchmark index by more than 2.50% (the “Hurdle Rate”), for the preceding twelve month period, as follows:
Benchmark | Required | Performance | ||||
Index | Hurdle Rate | Adjustment Rate | ||||
Sands Capital Select Growth Fund | Russell1000® Growth Index | +/-2.50% | +/-0.15% |
For the six months ended March 31, 2020, the Advisor’s base fee was decreased by $661,709 as a result of the performance fee adjustment.
The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):
Ares Capital Management II LLC | The London Company | |
Credit Opportunities II Fund | Mid Cap Fund | |
Small Cap Fund | ||
EARNEST Partners LLC | ||
Impact Bond Fund | Rockefeller & Co. LLC | |
International ESG Equity Fund | ||
Fort Washington Investment Advisors, Inc.* | ||
Active Bond Fund | Sands Capital Management, LLC | |
High Yield Fund | Sands Capital Select Growth Fund | |
Ultra Short Duration Fixed Income Fund | ||
TOBAM S.A.S. | ||
LMCG Investments, LLC | Anti-Benchmark® International Core Equity Fund | |
Mid Cap Value Fund | Anti-Benchmark® US Core Equity Fund | |
Small Cap Value Fund |
*Affiliate of the Advisor and wholly-owned subsidiary of Western & Southern.
The Advisor pays sub-advisory fees to each Sub-Advisor from its advisory fee.
The Advisor entered into an expense limitation agreement (the “Expense Limitation Agreement”) to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transaction and investment related expenses, including expenses associated with the Funds’ liquidity providers; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not incurred in the ordinary course of business. The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to waive a portion of its fees, and to reimburse certain fund expenses in order to maintain the following expense limitations for the Funds:
Institutional | ||||||||||||||||||
Class A | Class C | Class S | Class Y | Class Z | Class | |||||||||||||
Active Bond Fund | 0.90 | % | 1.65 | % | — | 0.65 | % | — | 0.57 | % |
106
Notes to Financial Statements(Unaudited) (Continued)
Institutional | ||||||||||||||||||
Class A | Class C | Class S | Class Y | Class Z | Class | |||||||||||||
Anti-Benchmark® International Core Equity Fund | — | — | — | 0.69 | % | — | 0.59 | % | ||||||||||
Anti-Benchmark® US Core Equity Fund | — | — | — | 0.54 | % | — | 0.44 | % | ||||||||||
Credit Opportunities II Fund | 1.08 | % | 1.83 | % | — | 0.83 | % | — | 0.73 | % | ||||||||
High Yield Fund | 1.05 | % | 1.80 | % | — | 0.80 | % | — | 0.72 | % | ||||||||
Impact Bond Fund | 0.85 | % | 1.60 | % | — | 0.60 | % | — | 0.50 | % | ||||||||
International ESG Equity Fund | 1.17 | % | 1.95 | % | — | 0.90 | % | — | 0.89 | % | ||||||||
Mid Cap Fund | 1.21 | % | 1.96 | % | — | 0.96 | % | 1.21 | % | 0.89 | % | |||||||
Mid Cap Value Fund | 1.22 | % | 1.97 | % | — | 0.97 | % | — | 0.84 | % | ||||||||
Sands Capital Select Growth Fund* | 0.25 | % | 0.25 | % | — | 0.25 | % | 0.25 | % | — | ||||||||
Small Cap Fund | 1.24 | % | 1.99 | % | — | 0.99 | % | — | 0.91 | % | ||||||||
Small Cap Value Fund | 1.38 | % | 2.13 | % | — | 1.13 | % | — | 0.98 | % | ||||||||
Ultra Short Duration Fixed Income Fund | 0.69 | % | 1.19 | % | 0.94 | % | 0.44 | % | 0.69 | % | 0.39 | % |
*The Expense Limitation Agreement for Sands Capital Select Growth Fund limits other operating expenses to 0.25% for all classes of the Fund. Other operating expenses include all operating expenses of the Fund except for investment advisory fees, administration fees, performance fees, distribution fees (12b-1), shareholder service fees and any expenses excluded in the Expense Limitation Agreement.
These expense limitations will remain in effect for all Funds through at least January 30, 2021. The Expense Limitation Agreement can be terminated by a vote of the Funds’ Board if it deems the termination to be beneficial to the Funds’ shareholders.
During the six months ended March 31, 2020, the Advisor or its affiliates waived investment advisory fees, administration fees and waived or reimbursed other operating expenses, including distribution fees of the Funds, as follows:
Other Operating | ||||||||||||||||
Investment | Expenses | |||||||||||||||
Advisory | Administration | Reimbursed/ | ||||||||||||||
Fees Waived | Fees Waived | Waived | Total | |||||||||||||
Active Bond Fund | $ | 65,203 | $ | — | $ | 69,273 | $ | 134,476 | ||||||||
Anti-Benchmark® International Core Equity Fund | 39,610 | 26,972 | 8,583 | 75,165 | ||||||||||||
Anti-Benchmark® US Core Equity Fund | 22,788 | 20,022 | 10,043 | 52,853 | ||||||||||||
Credit Opportunities II Fund | 32,926 | 74,065 | 28,128 | 135,119 | ||||||||||||
High Yield Fund | — | 16,102 | 53,052 | 69,154 | ||||||||||||
Impact Bond Fund | — | 51,411 | 87,007 | 138,418 | ||||||||||||
International ESG Equity Fund | 21,656 | 24,236 | 50,796 | 96,688 | ||||||||||||
Mid Cap Fund | — | — | 462,698 | 462,698 | ||||||||||||
Mid Cap Value Fund | — | 287,251 | 440,019 | 727,270 | ||||||||||||
Sands Capital Select Growth Fund | — | — | 177,249 | 177,249 | ||||||||||||
Small Cap Fund | 17,040 | 54,783 | 53,610 | 125,433 | ||||||||||||
Small Cap Value Fund | — | 61,452 | 38,772 | 100,224 | ||||||||||||
Ultra Short Duration Fixed Income Fund | — | 147,047 | 218,760 | 365,807 |
Under the terms of the Expense Limitation Agreement, the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the date on which the Advisor reduced its compensation or assumed expenses for the Funds. A Fund will make repayments to the Advisor only if such repayment does not cause the Fund’s operating expenses (after the repayment is taken into account) to exceed the Fund’s expense limit in place when such amounts were waived or reimbursed by the Advisor and the Fund’s current expense limitation.
As of March 31, 2020, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:
Expires | Expires | Expires | Expires | Expires | Expires | Expires | ||||||||||||||||||||||||||
on or | on or | on or | on or | on or | on or | on or | ||||||||||||||||||||||||||
before | before | before | before | before | before | before | ||||||||||||||||||||||||||
June 30, | September | June 30, | September | June 30, | September | September | ||||||||||||||||||||||||||
Fund | 2020 | 30, 2020 | 2021 | 30, 2021 | 2022 | 30, 2022 | 30, 2023 | Total | ||||||||||||||||||||||||
Active Bond Fund | $ | — | $ | 103,605 | $ | — | $ | 150,083 | $ | — | $ | 232,470 | $ | 101,234 | $ | 587,392 | ||||||||||||||||
Anti-Benchmark® International Core Equity Fund | — | — | — | — | — | 155,348 | — | 155,348 | ||||||||||||||||||||||||
Anti-Benchmark® US Core Equity Fund | — | — | — | — | — | 99,022 | 52,853 | 151,875 |
107
Notes to Financial Statements(Unaudited) (Continued)
Expires | Expires | Expires | Expires | Expires | Expires | Expires | ||||||||||||||||||||||||||
on or | on or | on or | on or | on or | on or | on or | ||||||||||||||||||||||||||
before | before | before | before | before | before | before | ||||||||||||||||||||||||||
June 30, | September | June 30, | September | June 30, | September | September | ||||||||||||||||||||||||||
Fund | 2020 | 30, 2020 | 2021 | 30, 2021 | 2022 | 30, 2022 | 30, 2023 | Total | ||||||||||||||||||||||||
Credit Opportunities II Fund | $ | 86,848 | $ | — | $ | 112,035 | $ | — | $ | 172,127 | $ | 107,785 | $ | 125,351 | $ | 604,146 | ||||||||||||||||
High Yield Fund | — | 63,432 | — | 103,212 | — | 123,791 | 46,317 | 336,752 | ||||||||||||||||||||||||
Impact Bond Fund | — | 128,264 | — | 278,009 | — | 270,814 | 121,629 | 798,716 | ||||||||||||||||||||||||
International ESG Equity Fund | — | 20,314 | — | 26,244 | — | 77,175 | 77,890 | 201,623 | ||||||||||||||||||||||||
Mid Cap Fund | — | 306,151 | — | 468,850 | — | 1,014,098 | 392,884 | 2,181,983 | ||||||||||||||||||||||||
Mid Cap Value Fund | — | 313,777 | — | 692,241 | — | 1,211,849 | 704,008 | 2,921,875 | ||||||||||||||||||||||||
Sands Capital Select Growth Fund | — | 38,460 | — | 343,929 | — | 341,505 | 177,249 | 901,143 | ||||||||||||||||||||||||
Small Cap Fund | — | 20,093 | — | 63,116 | — | 147,751 | 112,144 | 343,104 | ||||||||||||||||||||||||
Small Cap Value Fund | — | 247,905 | — | 231,612 | — | 174,347 | 78,604 | 732,468 | ||||||||||||||||||||||||
Ultra Short Duration Fixed Income Fund | — | 201,726 | — | 570,299 | — | 610,602 | 271,603 | 1,654,230 |
For the six months ended March 31, 2020, the Advisor is eligible to recoup previously waived fees or reimbursed expenses from Sands Capital Select Growth Fund of $18,646.
ADMINISTRATIONAGREEMENT
The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with the SEC and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.
For its services, the Advisor’s annual administrative fee is:
0.145% on the first $20 billion of the aggregate average daily net assets;
0.11% on the next $10 billion of aggregate average daily net assets;
0.09% on the next $10 billion of aggregate average daily net assets; and
0.07% on the aggregate average daily net assets over $40 billion.
The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.
The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.
The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares, excluding the Active Bond Fund and High Yield Fund, pays an annual fee not to
108
Notes to Financial Statements(Unaudited) (Continued)
exceed 0.25% of average daily net assets that are attributable to Class A shares. The Active Bond Fund and High Yield Fund pay an annual fee not to exceed 0.35% of average daily net assets that are attributable to Class A shares. The Active Bond Fund and High Yield Fund currently limit the 12b-1 fees for Class A shares to 0.25% of average daily net assets attributable to such shares. Under the Class C plan, each Fund offering Class C shares (except the Ultra Short Duration Fixed Income Fund) pays an annual fee not to exceed 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee). The Ultra Short Duration Fixed Income Fund has limited the amount of the 12b-1 fees for Class C shares to 0.75% of average daily net assets through January 29, 2021. Under the Class S plan, the Ultra Short Duration Fixed Income Fund pays an annual shareholder servicing fee not to exceed 0.50% of average daily net assets that are attributable to Class S shares (of which up to 0.25% is a distribution fee and up to 0.25% is a shareholder servicing fee). Under the Class Z plan, each Fund offering Class Z shares pays an annual shareholder servicing fee not to exceed 0.25% of average daily net assets that are attributable to 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 the Underwriter, the Underwriter earned underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Underwriter and the Advisor, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Underwriter and its affiliate during the six months ended March 31, 2020:
Fund | Amount | |||
Active Bond Fund | $ | 1,717 | ||
Credit Opportunities II Fund | 789 | |||
High Yield Fund | 526 | |||
Impact Bond Fund | 1,067 | |||
International ESG Equity Fund | 322 | |||
Mid Cap Fund | 21,769 | |||
Mid Cap Value Fund | 941 | |||
Sands Capital Select Growth Fund | 2,924 | |||
Small Cap Fund | 276 | |||
Small Cap Value Fund | 214 | |||
Ultra Short Duration Fixed Income Fund | 532 |
In addition, the Underwriter collected CDSC on the redemption of Class A and Class C shares of the Funds listed below during the six months ended March 31, 2020:
Fund | Class C | |||
Credit Opportunities II Fund | $ | 200 | ||
International ESG Equity Fund | 13 | |||
Mid Cap Fund | 986 | |||
Sands Capital Select Growth Fund | 33,206 | |||
Ultra Short Duration Fixed Income Fund | 204 |
INTERFUND TRANSACTIONS
Pursuant to Rule 17a-7 under the 1940 Act, the Funds may engage in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common Trustees and/or common officers. During the six months ended March 31, 2020, the Funds did not engage in any Rule 17a-7 transactions.
5. Liquidity
ReFlow Fund LLC —The Funds may participate in the ReFlow Fund LLC liquidity program (“ReFlow”), which is designed to provide an alternative liquidity source for funds experiencing redemptions. In order to pay cash to shareholders who redeem their shares on a given day, a fund typically must hold cash in its portfolio, liquidate portfolio securities, or borrow money. ReFlow provides participating funds with another source of cash by standing ready to purchase shares from a fund up to the amount of the fund’s net redemptions on a given day, cumulatively limited to 3% of the outstanding voting shares of a Fund. ReFlow then generally redeems those shares (in cash or in-kind) when the Fund experiences net sales, at the end of a maximum holding period determined by ReFlow, or at other times at ReFlow’s discretion. In return for this service, the Fund will pay a fee to ReFlow at a rate determined by a daily auction with other participating mutual funds.
109
Notes to Financial Statements(Unaudited) (Continued)
During the six months ended March 31, 2020, the following Funds utilized ReFlow. The shares ReFlow subscribed to and redemptions-in-kind were as follows:
Shares ReFlow | ||||||||
Fund | Subscribed to | Redemptions-in-kind | ||||||
Sands Capital Select Growth Fund | 14,116,346 | $ | 184,776,395 | |||||
Small Cap Fund | 476,110 | 4,807,883 |
Interfund lending —Pursuant to an Exemptive Order issued by the SEC on March 28, 2017, the Funds, along with certain other funds in the Touchstone Fund Complex, may participate in an interfund lending program. The interfund lending program provides an alternate credit facility that allows the Funds to lend to or borrow from other participating funds in the Touchstone Fund Complex, subject to the conditions of the Exemptive Order. The Funds may not borrow under the facility for leverage purposes and the loans’ duration may be no more than 7 days.
During the six months ended March 31, 2020, the following Funds participated as lenders in the interfund lending program. The daily average amount loaned, weighted average interest rate and interest income were as follows:
Daily Average | Weighted Average | Interest | ||||||||||
Fund | Amount Loaned | Interest Rate | Income* | |||||||||
Mid Cap Fund | $ | 1,222,676 | 1.49 | % | $ | 8,765 | ||||||
Sands Capital Select Growth Fund | $ | 302,929 | 2.09 | % | $ | 3,483 |
*Included in Interest in the Statements of Operations.
During the six months ended March 31, 2020, the following Funds participated as borrowers in the interfund lending program. The daily average amount borrowed, weighted average interest rate and interest expense were as follows:
Daily Average | Weighted Average | Interest | ||||||||||
Fund | Amount Borrowed | Interest Rate | Expense* | |||||||||
Credit Opportunities II Fund | $ | 109,951 | 0.86 | % | $ | 484 |
*Included in Other expenses in the Statements of Operations.
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. It is each Fund’s policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid for the years or periods ended September 30, 2019 and 2018 for all funds except for the Credit Opportunities II Fund, which is for the three months ended September 30, 2019 and the years ended June 30, 2019 and 2018, are as follows:
Anti-Benchmark® International | Anti-Benchmark® US Core | |||||||||||||
Active Bond Fund | Core Equity Fund | Equity Fund | ||||||||||||
Year Ended | Year Ended | Period Ended | Period Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||
2019 | 2018 | 2019(A) | 2019(A) | |||||||||||
From ordinary income | $ | 9,614,220 | $ | 10,048,932 | $ | 32,749 | $ | 145,904 | ||||||
From long-term capital gains | — | — | — | — | ||||||||||
Total distributions | $ | 9,614,220 | $ | 10,048,932 | $ | 32,749 | $ | 145,904 |
110
Notes to Financial Statements(Unaudited) (Continued)
Credit Opportunities II Fund | High Yield Fund | |||||||||||||||||||
Three Months Ended | Year Ended | Year Ended | Year Ended | Year Ended | ||||||||||||||||
September 30, | June 30, | June 30, | September 30, | September 30, | ||||||||||||||||
2019(B) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
From ordinary income | $ | 3,206,036 | $ | 3,271,569 | $ | 3,211,801 | $ | 10,001,955 | $ | 10,245,696 | ||||||||||
From long-term capital gains | — | 307,535 | 926,076 | — | — | |||||||||||||||
Total distributions | $ | 3,206,036 | $ | 3,579,104 | $ | 4,137,877 | $ | 10,001,955 | $ | 10,245,696 |
Impact Bond Fund | International ESG Equity Fund | Mid Cap Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
From ordinary income | $ | 7,791,647 | $ | 8,079,643 | $ | 1,316,207 | $ | 2,656,746 | $ | 9,903,400 | $ | 2,340,836 | ||||||||||||
From long-term capital gains | — | — | 6,831,966 | 2,381,070 | 23,663,184 | 6,743,129 | ||||||||||||||||||
Total distributions | $ | 7,791,647 | $ | 8,079,643 | $ | 8,148,173 | $ | 5,037,816 | $ | 33,566,584 | $ | 9,083,965 |
Mid Cap Value Fund | Sands Capital Select Growth Fund | Small Cap Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
From ordinary income | $ | 15,017,130 | $ | 13,722,613 | $ | — | $ | — | $ | 125,425 | $ | 4,992,245 | ||||||||||||
From long-term capital gains | 23,697,909 | 33,142,075 | 422,272,917 | 476,473,679 | 23,461,668 | 34,210,136 | ||||||||||||||||||
Total distributions | $ | 38,715,039 | $ | 46,864,688 | $ | 422,272,917 | $ | 476,473,679 | $ | 23,587,093 | $ | 39,202,381 |
Small Cap Value Fund | Ultra Short Duration Fixed Income Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
From ordinary income | $ | 1,637,755 | $ | 158,448 | $ | 25,162,001 | $ | 19,867,119 | ||||||||
From long-term capital gains | 8,137,372 | — | — | — | ||||||||||||
Total distributions | $ | 9,775,127 | $ | 158,448 | $ | 25,162,001 | $ | 19,867,119 |
(A) Represents the period from commencement of operations (November 19, 2018) through September 30, 2019.
(B) The fund changed its fiscal year end from June 30 to September 30.
The following information is computed on a tax basis for each item as of September 30, 2019:
Anti-Benchmark® | Anti-Benchmark® | ||||||||||||
Active Bond | International Core Equity | US Core Equity | Credit Opportunities II | ||||||||||
Fund | Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 314,865,859 | $ | 36,441,595 | $ | 25,106,002 | $ | 105,371,029 | |||||
Gross unrealized appreciation on investments | 10,137,421 | 3,403,486 | 2,881,001 | 2,908,716 | |||||||||
Gross unrealized depreciation on investments | (1,258,932 | ) | (3,049,893 | ) | (958,878 | ) | (1,986,881 | ) | |||||
Net unrealized appreciation (depreciation) on investments | 8,878,489 | 353,593 | 1,922,123 | 921,835 | |||||||||
Net unrealized appreciation (depreciation) on short sales, derivatives and foreign currency transactions | — | (2,004 | ) | — | 43,605 | ||||||||
Capital loss carryforwards | (89,826,888 | ) | (399,296 | ) | (761,830 | ) | (15,678,785 | ) | |||||
Undistributed ordinary income | 133,667 | 726,380 | 340,464 | — | |||||||||
Other temporary differences | (216,822 | ) | — | — | (31,928 | ) | |||||||
Accumulated earnings (deficit) | $ | (81,031,554 | ) | $ | 678,673 | $ | 1,500,757 | $ | (14,745,273 | ) |
111
Notes to Financial Statements(Unaudited) (Continued)
High Yield | Impact Bond | International ESG Equity | Mid Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 201,702,943 | $ | 300,313,024 | $ | 37,105,814 | $ | 1,307,369,028 | ||||||||
Gross unrealized appreciation on investments | 6,359,367 | 12,287,873 | 2,072,630 | 337,458,220 | ||||||||||||
Gross unrealized depreciation on investments | (4,675,129 | ) | (786,917 | ) | (760,939 | ) | (17,461,603 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 1,684,238 | 11,500,956 | 1,311,691 | 319,996,617 | ||||||||||||
Net unrealized appreciation (depreciation) on foreign currency transactions | — | — | 85 | — | ||||||||||||
Capital loss carryforwards | (16,246,404 | ) | (6,199,718 | ) | — | — | ||||||||||
Undistributed ordinary income | 149,564 | 158,080 | 91,912 | 5,522,326 | ||||||||||||
Undistributed capital gains | — | — | 6,554,323 | 40,623,312 | ||||||||||||
Accumulated earnings (deficit) | $ | (14,412,602 | ) | $ | 5,459,318 | $ | 7,958,011 | $ | 366,142,255 |
Mid Cap Value | Sands Capital Select | Small Cap | Small Cap Value | |||||||||||||
Fund | Growth Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 679,611,778 | $ | 971,328,034 | $ | 58,427,167 | $ | 85,929,371 | ||||||||
Gross unrealized appreciation on investments | 149,664,604 | 846,145,613 | 25,489,040 | 11,892,853 | ||||||||||||
Gross unrealized depreciation on investments | (73,330,053 | ) | (60,512,920 | ) | (3,567,600 | ) | (8,129,407 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 76,334,551 | 785,632,693 | 21,921,440 | 3,763,446 | ||||||||||||
Capital loss carryforwards | (6,125,290 | ) | — | — | (13,061,170 | ) | ||||||||||
Qualified late-year losses | — | (14,924,293 | ) | — | — | |||||||||||
Undistributed ordinary income | 123,522 | — | 83,867 | — | ||||||||||||
Undistributed capital gains | — | 255,631,902 | 5,777,772 | — | ||||||||||||
Accumulated earnings (deficit) | $ | 70,332,783 | $ | 1,026,340,302 | $ | 27,783,079 | $ | (9,297,724 | ) |
Ultra Short Duration | ||||
Fixed Income Fund | ||||
Tax cost of portfolio investments | $ | 1,017,123,395 | ||
Gross unrealized appreciation on investments | 3,180,469 | |||
Gross unrealized depreciation on investments | (1,082,093 | ) | ||
Net unrealized appreciation (depreciation) on investments | 2,098,376 | |||
Capital loss carryforwards | (98,605,855 | ) | ||
Undistributed ordinary income | 713,681 | |||
Other temporary differences | (219,489 | ) | ||
Accumulated earnings (deficit) | $ | (96,013,287 | ) |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, investments in passive foreign investment company (“PFIC”) adjustments, amortization adjustments on bonds, preferred income outstanding and taxable interest on defaulted securities.
As of September 30, 2019, the Funds had the following capital loss carryforwards for federal income tax purposes:
No Expiration | No Expiration | |||||||||||
Short Term | Long Term | Total | ||||||||||
Active Bond Fund* | $ | 47,122,290 | $ | 42,704,598 | $ | 89,826,888 | ||||||
Anti-Benchmark® International Core Equity Fund | 399,296 | — | 399,296 | |||||||||
Anti-Benchmark®US Core Equity Fund | 761,830 | — | 761,830 | |||||||||
Credit Opportunities II Fund* | 3,186,350 | 12,492,435 | 15,678,785 | |||||||||
High Yield Fund | — | 16,246,404 | 16,246,404 | |||||||||
Impact Bond Fund | 583,609 | 5,616,109 | 6,199,718 | |||||||||
Mid Cap Value Fund | 796,735 | 5,328,555 | 6,125,290 | |||||||||
Small Cap Value Fund | 7,162,930 | 5,898,240 | 13,061,170 | |||||||||
Ultra Short Duration Fixed Income Fund* | 28,083,144 | 70,522,711 | 98,605,855 |
* Future utilization may be limited under current tax rules
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.
112
Notes to Financial Statements(Unaudited) (Continued)
The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended September 30, 2016 through 2019) and have concluded that no provision for income tax is required in their financial statements.
As of March 31, 2020 the Trust had the following federal tax cost resulting in net unrealized appreciation (depreciation) as follows:
Gross | Gross | |||||||||||||||||||||||
Unrealized | Unrealized | Gross | Gross | Net | ||||||||||||||||||||
Appreciation | Depreciation | Unrealized | Unrealized | Unrealized | ||||||||||||||||||||
Federal Tax | on | on | Appreciation | Depreciation | Appreciation | |||||||||||||||||||
Fund | Cost | Investments | Investments | on Other* | on Other* | (Depreciation) | ||||||||||||||||||
Active Bond Fund | $ | 310,363,855 | $ | 7,541,306 | $ | (13,355,064 | ) | $ | — | $ | — | $ | (5,813,758 | ) | ||||||||||
Anti-Benchmark® International Core Equity Fund | 36,998,320 | 1,900,989 | (6,094,960 | ) | 889 | (709 | ) | (4,193,791 | ) | |||||||||||||||
Anti-Benchmark® US Core Equity Fund | 25,862,513 | 1,717,806 | (3,929,894 | ) | — | — | (2,212,088 | ) | ||||||||||||||||
Credit Opportunities II Fund | 84,707,734 | 614,981 | (14,149,768 | ) | 347,095 | (117,972 | ) | (13,305,664 | ) | |||||||||||||||
High Yield Fund | 199,269,470 | 1,135,998 | (27,450,349 | ) | — | — | (26,314,351 | ) | ||||||||||||||||
Impact Bond Fund | 310,098,530 | 14,265,589 | (3,450,936 | ) | — | — | 10,814,653 | |||||||||||||||||
International ESG Equity Fund | 26,328,270 | 1,044,727 | (3,184,123 | ) | 857 | (1,109 | ) | (2,139,648 | ) | |||||||||||||||
Mid Cap Fund | 2,556,934,140 | 144,024,184 | (371,739,732 | ) | — | — | (227,715,548 | ) | ||||||||||||||||
Mid Cap Value Fund | 663,194,142 | 68,104,963 | (120,876,160 | ) | — | — | (52,771,197 | ) | ||||||||||||||||
Sands Capital Select Growth Fund | 954,305,544 | 621,993,734 | (65,081,217 | ) | — | — | 556,912,517 | |||||||||||||||||
Small Cap Fund | 57,951,867 | 12,047,779 | (10,503,525 | ) | — | — | 1,544,254 | |||||||||||||||||
Small Cap Value Fund | 84,395,016 | 4,226,229 | (23,130,461 | ) | — | — | (18,904,232 | ) | ||||||||||||||||
Ultra Short Duration Fixed Income Fund | 997,094,949 | 549,868 | (29,501,785 | ) | — | — | (28,951,917 | ) |
* Other includes Short Sales, Derivatives and Foreign Currency Transactions.
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.
8. Principal Risks
Risks Associated with Foreign Investments —Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
Risks Associated with Sector Concentration —Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility on the Funds’ NAVs and magnified effect on the total return.
Risks Associated with Credit —An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.
113
Notes to Financial Statements(Unaudited) (Continued)
Risks Associated with Interest Rate Changes —The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.
Risks Associated with Liquidity —Liquidity risk exists when particular investments are difficult to purchase or sell. This can reduce the Fund’s returns because the Fund may be unable to transact at advantageous times or prices, or at all.
Risks Associated with Health Crises —An outbreak of respiratory disease caused by a novel coronavirus was first detected in China in December 2019 and subsequently spread internationally. As of the date of issuance of these financial statements, this coronavirus has resulted in closing borders, enhanced health screenings, healthcare service preparation and delivery, quarantines, cancellations, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this coronavirus may be short term or may last for an extended period of time and result in a substantial economic downturn. The impact of this outbreak, and other epidemics and pandemics that may arise in the future, could negatively affect the worldwide economy, as well as the economies of individual countries, individual companies and the market in general in significant and unforeseen ways. Any such impact could adversely affect a Fund’s performance, the performance of the securities in which a Fund invests and may lead to losses on your investment in a Fund.
Please see the Funds’ prospectus for a complete discussion of these and other risks.
9. Fund Reorganizations
Credit Opportunities II Fund:
The shareholders of the Touchstone Credit Opportunities Fund, a series of the Touchstone Strategic Trust, approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Credit Opportunities Fund, to the Touchstone Credit Opportunities II Fund. The performance and accounting history of the Credit Opportunities Fund was assumed by the Credit Opportunities II Fund. The tax-free reorganization took place on September 6, 2019.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation immediately before and after the reorganization.
Before Reorganization | After Reorganization | |||||||||||
Touchstone | Touchstone | |||||||||||
Credit | Credit | Touchstone | ||||||||||
Opportunities | Opportunities II | Credit Opportunities II | ||||||||||
Fund | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | 26,000 | (A) | 698,600 | 724,600 | ||||||||
Net Assets | $ | 260,370 | $ | 6,996,031 | $ | 7,256,401 | ||||||
Net Asset Value | $ | 10.01 | (A) | $ | 10.01 | $ | 10.01 | |||||
Class C | ||||||||||||
Shares | 13,143 | (B) | 472,827 | 485,970 | ||||||||
Net Assets | $ | 127,998 | $ | 4,605,015 | $ | 4,733,013 | ||||||
Net Asset Value | $ | 9.74 | (B) | $ | 9.74 | $ | 9.74 | |||||
Class Y | ||||||||||||
Shares | 1,219,670 | (C) | 3,570,947 | 4,790,617 | ||||||||
Net Assets | $ | 12,359,997 | $ | 36,187,744 | $ | 48,547,741 | ||||||
Net Asset Value | $ | 10.13 | (C) | $ | 10.13 | $ | 10.13 | |||||
Institutional Class | ||||||||||||
Shares | 4,655,172 | (D) | 89,421 | 4,744,593 | ||||||||
Net Assets | $ | 47,445,148 | $ | 911,375 | $ | 48,356,523 | ||||||
Net Asset Value | $ | 10.19 | (D) | $ | 10.19 | $ | 10.19 |
114
Notes to Financial Statements(Unaudited) (Continued)
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Touchstone | Touchstone | |||||||||||
Credit | Credit | Touchstone | ||||||||||
Opportunities | Opportunities II | Credit Opportunities II | ||||||||||
Fund | Fund | Fund | ||||||||||
Fund Total | ||||||||||||
Shares Outstanding | 5,913,985 | 4,831,795 | 10,745,780 | |||||||||
Net Assets | $ | 60,193,513 | $ | 48,700,165 | $ | 108,893,678 | ||||||
Unrealized Appreciation (Depreciation) | $ | 394,743 | $ | 846,606 | $ | 1,241,349 |
(A)Reflects a 0.9894:1 stock split which occurred on the date of reorganization, September 6, 2019.
(B)Reflects a 1:1.0199 reverse stock split which occurred on the date of reorganization, September 6, 2019.
(C)Reflects a 0.9776:1 stock split which occurred on the date of reorganization, September 6, 2019.
(D)Reflects a 0.9720:1 stock split which occurred on the date of reorganization, September 6, 2019.
Assuming the reorganization had been completed on October 1, 2018, the Credit Opportunities II Fund’s results of operations for the year ended September 30, 2019 would have been as follows:
Net investment income | $ | 3,495,929 | ||
Net realized and unrealized gain (loss) on investments | $ | (254,625 | ) | |
Net increase in net assets resulting from operations | $ | 3,241,304 |
Because the combined investment portfolios have been managed as a single portfolio since the reorganization was completed, it is not practical to separate the amounts of revenue and earnings to the Credit Opportunities II Fund that have been included in its statement of operations since the reorganization.
10. Subsequent Events
Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date the financial statements were issued.
At a meeting of the Board of Trustees of the Trust held on May 21, 2020, the Board approved the reorganization (”Reorganization“) of the Anti-Benchmark® US Core Equity Fund, a series of the Trust, into the Touchstone Dynamic Equity Fund (to be renamed the Touchstone Anti-Benchmark® US Core Equity Fund), a series of the Touchstone Strategic Trust. The Reorganization is expected to be completed on or about September 11, 2020.
There were no other subsequent events that necessitated recognition or disclosure in the Funds’ financial statements.
115
Proxy Voting Guidelines and Proxy Voting Records
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website atTouchstoneInvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30, will be filed by August 31 of that year, is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.
Quarterly Portfolio Disclosure
Each Fund’s holdings as of the end of the third month of every fiscal quarter will be disclosed on Form N-PORT within 60 days of the end of the fiscal quarter. The complete listing of each Fund’s portfolio holdings is available on the Commission’s website and will be made available to shareholders upon request by calling 1.800.543.0407.
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, 2019 through March 31, 2020).
Actual Expenses
The first line for each share class of a Fund in 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, 2020” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class of a Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table below is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Expenses | ||||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||||
March 31,2020 | October 1,2019 | March 31,2020 | March 31,2020* | |||||||||||||||||
Touchstone Active Bond Fund | ||||||||||||||||||||
Class A | Actual | 0.90 | % | $ | 1,000.00 | $ | 981.20 | $ | 4.46 | |||||||||||
Class A | Hypothetical | 0.90 | % | $ | 1,000.00 | $ | 1,020.50 | $ | 4.55 | |||||||||||
Class C | Actual | 1.65 | % | $ | 1,000.00 | $ | 978.20 | $ | 8.16 | |||||||||||
Class C | Hypothetical | 1.65 | % | $ | 1,000.00 | $ | 1,016.75 | $ | 8.32 | |||||||||||
Class Y | Actual | 0.65 | % | $ | 1,000.00 | $ | 982.40 | $ | 3.22 | |||||||||||
Class Y | Hypothetical | 0.65 | % | $ | 1,000.00 | $ | 1,021.75 | $ | 3.29 | |||||||||||
Institutional Class | Actual | 0.57 | % | $ | 1,000.00 | $ | 981.90 | $ | 2.82 | |||||||||||
Institutional Class | Hypothetical | 0.57 | % | $ | 1,000.00 | $ | 1,022.15 | $ | 2.88 |
116
Other Items (Unaudited) (Continued)
Expenses | ||||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||||
March 31,2020 | October 1,2019 | March 31,2020 | March 31,2020* | |||||||||||||||||
Anti-Benchmark® International Core Equity Fund | ||||||||||||||||||||
Class Y | Actual | 0.69 | % | $ | 1,000.00 | $ | 890.20 | $ | 3.26 | |||||||||||
Class Y | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.55 | $ | 3.49 | |||||||||||
Institutional Class | Actual | 0.59 | % | $ | 1,000.00 | $ | 890.70 | $ | 2.79 | |||||||||||
Institutional Class | Hypothetical | 0.59 | % | $ | 1,000.00 | $ | 1,022.05 | $ | 2.98 | |||||||||||
Anti-Benchmark® US Core Equity Fund | ||||||||||||||||||||
Class Y | Actual | 0.54 | % | $ | 1,000.00 | $ | 878.60 | $ | 2.54 | |||||||||||
Class Y | Hypothetical | 0.54 | % | $ | 1,000.00 | $ | 1,022.30 | $ | 2.73 | |||||||||||
Institutional Class | Actual | 0.44 | % | $ | 1,000.00 | $ | 879.00 | $ | 2.07 | |||||||||||
Institutional Class | Hypothetical | 0.44 | % | $ | 1,000.00 | $ | 1,022.80 | $ | 2.23 | |||||||||||
Touchstone Credit Opportunities II Fund | ||||||||||||||||||||
Class A | Actual | 1.18 | % | $ | 1,000.00 | $ | 858.10 | $ | 5.48 | ** | ||||||||||
Class A | Hypothetical | 1.18 | % | $ | 1,000.00 | $ | 1,019.10 | $ | 5.96 | ** | ||||||||||
Class C | Actual | 1.93 | % | $ | 1,000.00 | $ | 855.70 | $ | 8.95 | ** | ||||||||||
Class C | Hypothetical | 1.93 | % | $ | 1,000.00 | $ | 1,015.35 | $ | 9.72 | ** | ||||||||||
Class Y | Actual | 0.93 | % | $ | 1,000.00 | $ | 859.10 | $ | 4.32 | ** | ||||||||||
Class Y | Hypothetical | 0.93 | % | $ | 1,000.00 | $ | 1,020.35 | $ | 4.70 | ** | ||||||||||
Institutional Class | Actual | 0.83 | % | $ | 1,000.00 | $ | 859.50 | $ | 3.86 | ** | ||||||||||
Institutional Class | Hypothetical | 0.83 | % | $ | 1,000.00 | $ | 1,020.85 | $ | 4.19 | ** | ||||||||||
Touchstone High Yield Fund | ||||||||||||||||||||
Class A | Actual | 1.05 | % | $ | 1,000.00 | $ | 879.60 | $ | 4.93 | |||||||||||
Class A | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.75 | $ | 5.30 | |||||||||||
Class C | Actual | 1.80 | % | $ | 1,000.00 | $ | 876.10 | $ | 8.44 | |||||||||||
Class C | Hypothetical | 1.80 | % | $ | 1,000.00 | $ | 1,016.00 | $ | 9.07 | |||||||||||
Class Y | Actual | 0.80 | % | $ | 1,000.00 | $ | 880.10 | $ | 3.76 | |||||||||||
Class Y | Hypothetical | 0.80 | % | $ | 1,000.00 | $ | 1,021.00 | $ | 4.04 | |||||||||||
Institutional Class | Actual | 0.72 | % | $ | 1,000.00 | $ | 880.30 | $ | 3.38 | |||||||||||
Institutional Class | Hypothetical | 0.72 | % | $ | 1,000.00 | $ | 1,021.40 | $ | 3.64 | |||||||||||
Touchstone Impact Bond Fund | ||||||||||||||||||||
Class A | Actual | 0.85 | % | $ | 1,000.00 | $ | 1,008.80 | $ | 4.27 | |||||||||||
Class A | Hypothetical | 0.85 | % | $ | 1,000.00 | $ | 1,020.75 | $ | 4.29 | |||||||||||
Class C | Actual | 1.60 | % | $ | 1,000.00 | $ | 1,005.20 | $ | 8.02 | |||||||||||
Class C | Hypothetical | 1.60 | % | $ | 1,000.00 | $ | 1,017.00 | $ | 8.07 | |||||||||||
Class Y | Actual | 0.60 | % | $ | 1,000.00 | $ | 1,011.00 | $ | 3.02 | |||||||||||
Class Y | Hypothetical | 0.60 | % | $ | 1,000.00 | $ | 1,022.00 | $ | 3.03 | |||||||||||
Institutional Class | Actual | 0.50 | % | $ | 1,000.00 | $ | 1,011.50 | $ | 2.51 | |||||||||||
Institutional Class | Hypothetical | 0.50 | % | $ | 1,000.00 | $ | 1,022.50 | $ | 2.53 | |||||||||||
Touchstone International ESG Equity Fund | ||||||||||||||||||||
Class A | Actual | 1.17 | % | $ | 1,000.00 | $ | 838.50 | $ | 5.38 | |||||||||||
Class A | Hypothetical | 1.17 | % | $ | 1,000.00 | $ | 1,019.15 | $ | 5.91 | |||||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 835.60 | $ | 8.95 | |||||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.25 | $ | 9.82 | |||||||||||
Class Y | Actual | 0.90 | % | $ | 1,000.00 | $ | 839.70 | $ | 4.14 | |||||||||||
Class Y | Hypothetical | 0.90 | % | $ | 1,000.00 | $ | 1,020.50 | $ | 4.55 | |||||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 841.20 | $ | 4.10 | |||||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.55 | $ | 4.50 | |||||||||||
Touchstone Mid Cap Fund | ||||||||||||||||||||
Class A | Actual | 1.21 | % | $ | 1,000.00 | $ | 814.40 | $ | 5.49 | |||||||||||
Class A | Hypothetical | 1.21 | % | $ | 1,000.00 | $ | 1,018.95 | $ | 6.11 | |||||||||||
Class C | Actual | 1.96 | % | $ | 1,000.00 | $ | 811.20 | $ | 8.87 | |||||||||||
Class C | Hypothetical | 1.96 | % | $ | 1,000.00 | $ | 1,015.20 | $ | 9.87 | |||||||||||
Class Y | Actual | 0.96 | % | $ | 1,000.00 | $ | 815.40 | $ | 4.36 | |||||||||||
Class Y | Hypothetical | 0.96 | % | $ | 1,000.00 | $ | 1,020.20 | $ | 4.85 | |||||||||||
Class Z | Actual | 1.21 | % | $ | 1,000.00 | $ | 814.40 | $ | 5.49 | |||||||||||
Class Z | Hypothetical | 1.21 | % | $ | 1,000.00 | $ | 1,018.95 | $ | 6.11 | |||||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 815.70 | $ | 4.04 | |||||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.55 | $ | 4.50 | |||||||||||
Touchstone Mid Cap Value Fund | ||||||||||||||||||||
Class A | Actual | 1.22 | % | $ | 1,000.00 | $ | 770.60 | $ | 5.40 | |||||||||||
Class A | Hypothetical | 1.22 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.16 |
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Other Items (Unaudited) (Continued)
Expenses | ||||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||||
March 31,2020 | October 1,2019 | March 31,2020 | March 31,2020* | |||||||||||||||||
Class C | Actual | 1.97 | % | $ | 1,000.00 | $ | 768.00 | $ | 8.71 | |||||||||||
Class C | Hypothetical | 1.97 | % | $ | 1,000.00 | $ | 1,015.15 | $ | 9.92 | |||||||||||
Class Y | Actual | 0.97 | % | $ | 1,000.00 | $ | 771.70 | $ | 4.30 | |||||||||||
Class Y | Hypothetical | 0.97 | % | $ | 1,000.00 | $ | 1,020.15 | $ | 4.90 | |||||||||||
Institutional Class | Actual | 0.84 | % | $ | 1,000.00 | $ | 772.30 | $ | 3.72 | |||||||||||
Institutional Class | Hypothetical | 0.84 | % | $ | 1,000.00 | $ | 1,020.80 | $ | 4.24 | |||||||||||
Touchstone Sands Capital Select Growth Fund | ||||||||||||||||||||
Class A | Actual | 1.30 | % | $ | 1,000.00 | $ | 998.20 | $ | 6.49 | *** | ||||||||||
Class A | Hypothetical | 1.30 | % | $ | 1,000.00 | $ | 1,018.50 | $ | 6.56 | *** | ||||||||||
Class C | Actual | 2.05 | % | $ | 1,000.00 | $ | 996.00 | $ | 10.23 | *** | ||||||||||
Class C | Hypothetical | 2.05 | % | $ | 1,000.00 | $ | 1,014.75 | $ | 10.33 | *** | ||||||||||
Class Y | Actual | 1.05 | % | $ | 1,000.00 | $ | 999.90 | $ | 5.25 | *** | ||||||||||
Class Y | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.75 | $ | 5.30 | *** | ||||||||||
Class Z | Actual | 1.29 | % | $ | 1,000.00 | $ | 998.30 | $ | 6.44 | *** | ||||||||||
Class Z | Hypothetical | 1.29 | % | $ | 1,000.00 | $ | 1,018.55 | $ | 6.51 | *** | ||||||||||
Touchstone Small Cap Fund | ||||||||||||||||||||
Class A | Actual | 1.27 | % | $ | 1,000.00 | $ | 750.60 | $ | 5.56 | **** | ||||||||||
Class A | Hypothetical | 1.27 | % | $ | 1,000.00 | $ | 1,018.65 | $ | 6.41 | **** | ||||||||||
Class C | Actual | 2.02 | % | $ | 1,000.00 | $ | 748.30 | $ | 8.83 | **** | ||||||||||
Class C | Hypothetical | 2.02 | % | $ | 1,000.00 | $ | 1,014.90 | $ | 10.18 | **** | ||||||||||
Class Y | Actual | 1.02 | % | $ | 1,000.00 | $ | 752.00 | $ | 4.47 | **** | ||||||||||
Class Y | Hypothetical | 1.02 | % | $ | 1,000.00 | $ | 1,019.90 | $ | 5.15 | **** | ||||||||||
Institutional Class | Actual | 0.94 | % | $ | 1,000.00 | $ | 752.20 | $ | 4.12 | **** | ||||||||||
Institutional Class | Hypothetical | 0.94 | % | $ | 1,000.00 | $ | 1,020.30 | $ | 4.75 | **** | ||||||||||
Touchstone Small Cap Value Fund | ||||||||||||||||||||
Class A | Actual | 1.38 | % | $ | 1,000.00 | $ | 718.40 | $ | 5.93 | |||||||||||
Class A | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.10 | $ | 6.96 | |||||||||||
Class C | Actual | 2.13 | % | $ | 1,000.00 | $ | 715.70 | $ | 9.14 | |||||||||||
Class C | Hypothetical | 2.13 | % | $ | 1,000.00 | $ | 1,014.35 | $ | 10.73 | |||||||||||
Class Y | Actual | 1.13 | % | $ | 1,000.00 | $ | 719.50 | $ | 4.86 | |||||||||||
Class Y | Hypothetical | 1.13 | % | $ | 1,000.00 | $ | 1,019.35 | $ | 5.70 | |||||||||||
Institutional Class | Actual | 0.98 | % | $ | 1,000.00 | $ | 719.50 | $ | 4.21 | |||||||||||
Institutional Class | Hypothetical | 0.98 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 4.95 | |||||||||||
Touchstone Ultra Short Duration Fixed Income Fund | ||||||||||||||||||||
Class A | Actual | 0.69 | % | $ | 1,000.00 | $ | 979.90 | $ | 3.42 | |||||||||||
Class A | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.55 | $ | 3.49 | |||||||||||
Class C | Actual | 1.19 | % | $ | 1,000.00 | $ | 977.40 | $ | 5.88 | |||||||||||
Class C | Hypothetical | 1.19 | % | $ | 1,000.00 | $ | 1,019.05 | $ | 6.01 | |||||||||||
Class S | Actual | 0.94 | % | $ | 1,000.00 | $ | 979.70 | $ | 4.65 | |||||||||||
Class S | Hypothetical | 0.94 | % | $ | 1,000.00 | $ | 1,020.30 | $ | 4.75 | |||||||||||
Class Y | Actual | 0.44 | % | $ | 1,000.00 | $ | 981.10 | $ | 2.18 | |||||||||||
Class Y | Hypothetical | 0.44 | % | $ | 1,000.00 | $ | 1,022.80 | $ | 2.23 | |||||||||||
Class Z | Actual | 0.69 | % | $ | 1,000.00 | $ | 979.90 | $ | 3.42 | |||||||||||
Class Z | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.55 | $ | 3.49 | |||||||||||
Institutional Class | Actual | 0.39 | % | $ | 1,000.00 | $ | 981.40 | $ | 1.93 | |||||||||||
Institutional Class | Hypothetical | 0.39 | % | $ | 1,000.00 | $ | 1,023.05 | $ | 1.97 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect one-half year period). |
** | Excluding dividend and interest expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.02, $8.49, $3.86 and $3.39 respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.45, $9.22, $4.19 and $3.69, respectively. |
*** | Excluding liquidity provider expenses, your actual cost of investment in Class A, Class C, Class Y and Class Z would be $6.24, $9.98, $5.00 and $6.19, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Class Z would be $6.31, $10.08, $5.05 and $6.26, respectively. |
**** | Excluding liquidity provider expenses, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.43, $8.70, $4.34 and $3.99, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $6.26, $10.02, $5.00 and $4.60, respectively. |
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Other Items (Unaudited) (Continued)
Advisory and Sub-Advisory Agreement Approval Disclosure
At a meeting held on November 21, 2019, 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 the continuance of each Sub-Advisory Agreement between the Advisor and each Fund’s respective Sub-Advisor, except with respect to the Sub-Advisory Agreement for Touchstone International ESG Equity Fund, which was approved at a meeting held earlier in the year.
In determining whether to approve the continuation of 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 each Sub-Advisory Agreement was in the best interests of the respective Funds and their shareholders. The information provided to the Board included: (1) industry data comparing advisory fees and total expense ratios of comparable funds; (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 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 each Sub-Advisory Agreement. The Independent Trustees also reviewed the proposed continuation of the Investment Advisory Agreement and each Sub-Advisory Agreement with independent legal counsel in private sessions 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 such services; (2) the Advisor’s compensation and profitability; (3) a comparison of fees and performance with comparable funds; (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. 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 Board discussed the Advisor’s effectiveness in monitoring the performance of each Sub-Advisor, including the Sub-Advisor that was an affiliate of the Advisor, and the Advisor’s timeliness in responding to performance issues. The Board considered the Advisor’s process for monitoring each of the Sub-Advisors, which includes an examination of both qualitative and quantitative elements of the Sub-Advisor’s organization, personnel, procedures, investment discipline, infrastructure and performance. The Board considered that the Advisor conducts periodic compliance due diligence of each Sub-Advisor, during which the Advisor examines a wide variety of factors, such as the financial condition of the Sub-Advisor, the quality of the Sub-Advisor’s systems, the effectiveness of the Sub-Advisor’s disaster recovery programs, trade allocation and execution procedures, compliance with the Sub-Advisor’s policies and procedures, results of regulatory examinations and any other factors that might affect the quality of services that the Sub-Advisor provides to the applicable Fund(s). The Board noted that the Advisor’s compliance monitoring processes also include quarterly reviews of compliance certifications, and that any issues arising from such certifications and the Advisor’s compliance visits to the Sub-Advisors are reported to the Board.
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 a portion of advisory fees and administrative fees and/or reimbursed expenses of each of the Funds in order to limit each Fund’s net operating expenses. The Board 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 also considered whether the Advisor has the financial wherewithal to continue to provide 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 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.
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Other Items (Unaudited) (Continued)
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, 2019, 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 a portion of the fees and/or reimbursed expenses of each of the Funds in order to reduce the Funds’ 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 considered 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 considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:
Touchstone Active Bond Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and above the median, respectively, of its peer group. The Board noted that the Advisor was waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of its peer group for the six- and twelve-month periods ended September 30, 2019, while the Fund’s performance was in the 3rd quintile of its peer group for the thirty-six-month period ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Anti-Benchmark® International Core Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were each below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 4th quintile of its peer group for the six-month period ended September 30, 2019. The Board noted management’s discussion of the Fund’s performance and also took into account the Fund’s limited period of operations. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Anti-Benchmark® US Core Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were each below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 4th quintile of its peer group for the six-month period ended September 30, 2019. The Board noted management’s discussion of the Fund’s performance and also took into account the Fund’s limited period of operations. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Credit Opportunities II Fund.The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were each below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 1st quintile of its peer group for the six-, twelve- and thirty-six-month periods ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone High Yield Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and above the median, respectively, of its peer group. The Board noted that the Advisor was waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of its peer group for the six- and thirty-six-month periods ended September 30, 2019, while the Fund’s performance was in the 1st quintile of its peer group for the twelve-month period ended September 30, 2019. Based upon their review, the Trustees
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Other Items (Unaudited) (Continued)
concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Impact Bond Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were each below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of its peer group for the six- and thirty-six-month periods ended September 30, 2019, while the Fund’s performance was in the 3rd quintile of its peer group for the twelve-month period ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone International ESG Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund had outperformed its peer group for the six- and twelve-month periods ended September 30, 2019, while the Fund had underperformed its peer group for the thirty-six-month period ended September 30, 2019. The Board noted that the Fund had undergone a change in manager and principal investment strategy in August 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the 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 and reimbursements) were each above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 1st quintile of its peer group for the six-, twelve- and thirty-six-month periods ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the 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 and reimbursements) were each above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2ndquintile of its peer group for the six- and twelve-month periods ended September 30, 2019, while the Fund’s performance was in the 4thquintile of its peer group for the thirty-six-month period ended September 30, 2019. The Board noted management’s discussion of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the 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 and reimbursements) were each above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5thquintile of its peer group for the six- and twelve-month periods ended September 30, 2019, while the Fund’s performance was in the 2ndquintile of its peer group for the thirty-six-month period ended September 30, 2019. The Board noted management’s discussion of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Small Cap Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were each below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 1st quintile of its peer group for the six- and twelve-month periods ended September 30, 2019, while the Fund’s performance was in the 3rd quintile of its peer group for the thirty-six-month period ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the 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 and reimbursements) were at the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing operating expenses of the Fund. The Fund’s performance was in the 2nd quintile of its peer group for the six- and twelve-month periods ended September 30, 2019, while the Fund’s performance was in the 3rd quintile of its peer group for the thirty-six-month period ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
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Other Items (Unaudited) (Continued)
Touchstone Ultra Short Duration Fixed Income Fund.The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing operating expenses of the Fund. The Fund’s performance was in the 2nd quintile of its peer group for the six-, twelve- and thirty-six-month periods ended September 30, 2019. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the 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 Funds’ 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 noted that the advisory fee schedules for some of the Funds contain breakpoints that would reduce the respective advisory fee rate on assets above specified levels as the respective Fund’s assets increased and considered the necessity of adding breakpoints with respect to the Funds that did not currently have such breakpoints in their advisory fee schedules. The Board determined that adding breakpoints at specified levels to the advisory fee schedule of each of Touchstone Credit Opportunities II Fund, Touchstone Mid Cap Value Fund, Touchstone Small Cap Value Fund, Touchstone Impact Bond Fund and Touchstone Ultra Short Duration Fixed Income Fund, which currently did not have 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 Advisor pays sub-advisory fees to each Sub-Advisor from its Advisory Fee.
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 demonstrated that it possesses 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 overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices; and (d) each Fund’s advisory fee is reasonable in light of the services received by the Fund from the Advisor and other factors considered. 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 comparable funds; 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 one of the Sub-Advisors 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.
Sub-Advisor’s Compensation, Profitability and Economies of Scale.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 undertaking 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 out of the advisory fee it receives from the respective Fund. 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
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Other Items (Unaudited) (Continued)
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 reviewed the sub-advisory fee for each Fund in relation to various comparative data, including the median and average sub-advisory fees of each Fund’s peer group, and considered the following information:
Touchstone Active Bond Fund.The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Anti-Benchmark® International Core Equity 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Anti-Benchmark® US Core 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Credit Opportunities II 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone High Yield Fund.The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Impact Bond 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 services received by the Fund from the Sub-Advisor and 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Mid Cap 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 services received by the Fund from the Sub-Advisor 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Small 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Small 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 services received by the Fund from the Sub-Advisor 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 services received by the Fund from the Sub-Advisor and the other factors considered.
As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended September 30, 2019, as applicable, as compared to each Fund’s peer group 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 noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Sub-Advisor. The Board also was mindful of the Advisor’s ongoing monitoring of each Sub-Advisor’s performance and the measures undertaken by the Advisor to address any 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
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is qualified to manage each Fund’s assets in accordance with the Fund’s investment goals and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices; (d) each Fund’s sub-advisory fees are reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered; and (e) the Sub-Advisor’s investment strategies are appropriate for pursuing the investment goals 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.
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We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
• | We collect only the information we need to service your account and administer our business. |
• | We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information. |
• | We make every effort to ensure the accuracy of your information. |
We Collect the Following Nonpublic Personal Information About You:
• | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and |
• | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information. |
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• | We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business. |
• | We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information. |
• | We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document. |
• | We will not sell your personal information to anyone. |
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Strategic Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.,* and W&S Brokerage Services, Inc.
* Touchstone Securities, Inc. serves as the underwriter to the Touchstone Funds.
A Member of Western & Southern Financial Group®
The Privacy Protection Policy is not part of the Semi-Annual Report.
127
Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
Investment Advisor
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, Massachusetts 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-56-TFGT-SAR-2003
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Touchstone Funds Group Trust
By (Signature and Title)* | /s/ Jill T. McGruder |
Jill T. McGruder, President | |
(principal executive officer) |
DateJune 2, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Jill T. McGruder |
Jill T. McGruder, President | |
(principal executive officer) |
DateJune 2, 2020
By (Signature and Title)* | /s/ Terrie A. Wiedenheft |
Terrie A. Wiedenheft, Controller and Treasurer | |
(principal financial officer) |
DateJune 2, 2020
* Print the name and title of each signing officer under his or her signature