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, 2013
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, 2013
(Unaudited)
Semi-Annual Report
Touchstone Funds Group Trust
Touchstone Emerging Markets Equity Fund
Touchstone Focused Equity Fund
Touchstone Global Real Estate Fund
Touchstone International Fixed Income Fund
Touchstone Merger Arbitrage Fund
Touchstone Mid Cap Fund
Touchstone Mid Cap Value Fund
Touchstone Premium Yield Equity Fund
Touchstone Sands Capital Select Growth Fund
Touchstone Short Duration Fixed Income Fund
Touchstone Small Cap Core Fund
Touchstone Small Cap Value Fund
Touchstone Total Return Bond Fund
Touchstone Ultra Short Duration Fixed Income Fund
Table of Contents
Page | |
Tabular Presentation of Portfolios of Investments | 3 - 6 |
Portfolio of Investments: | |
Touchstone Emerging Markets Equity Fund | 7 |
Touchstone Focused Equity Fund | 10 |
Touchstone Global Real Estate Fund | 11 |
Touchstone International Fixed Income Fund | 13 |
Touchstone Merger Arbitrage Fund | 17 |
Touchstone Mid Cap Fund | 20 |
Touchstone Mid Cap Value Fund | 21 |
Touchstone Premium Yield Equity Fund | 23 |
Touchstone Sands Capital Select Growth Fund | 24 |
Touchstone Short Duration Fixed Income Fund | 25 |
Touchstone Small Cap Core Fund | 32 |
Touchstone Small Cap Value Fund | 33 |
Touchstone Total Return Bond Fund | 35 |
Touchstone Ultra Short Duration Fixed Income Fund | 39 |
Statements of Assets and Liabilities | 48 - 55 |
Statements of Operations | 56 - 59 |
Statement of Changes in Net Assets | 60 - 65 |
Statements of Changes in Net Assets - Capital Stock Activity | 66 - 75 |
Financial Highlights | 76 - 108 |
Notes to Financial Statements | 109 - 130 |
Other Items (Unaudited) | 131 - 143 |
Privacy Protection Policy | 147 |
2 |
Tabular Presentation of Portfolios of Investments (Unaudited)
March 31, 2013
Touchstone Emerging Markets Equity Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 24.5 | % | ||
Consumer Discretionary | 15.5 | |||
Consumer Staples | 12.0 | |||
Energy | 10.8 | |||
Materials | 10.6 | |||
Information Technology | 9.3 | |||
Telecommunication Services | 7.0 | |||
Industrials | 4.8 | |||
Utilities | 2.2 | |||
Health Care | 1.1 | |||
Investment Funds | 3.4 | |||
Other Assets/Liabilities(Net) | (1.2 | ) | ||
Total | 100.0 | % | ||
Touchstone Focused Equity Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 18.5 | % | ||
Industrials | 15.4 | |||
Information Technology | 12.7 | |||
Consumer Staples | 12.2 | |||
Consumer Discretionary | 10.9 | |||
Energy | 10.4 | |||
Health Care | 7.9 | |||
Telecommunication Services | 7.1 | |||
Investment Funds | 7.6 | |||
Other Assets/Liabilities (Net) | (2.7 | ) | ||
Total | 100.0 | % | ||
Touchstone Global Real Estate Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Retail | 22.5 | % | ||
Diversified Real Estate Activities | 19.4 | |||
Specialized | 14.3 | |||
Office | 13.1 | |||
Residential | 8.4 | |||
Diversified | 8.2 | |||
Industrial | 5.3 | |||
Real Estate Operating Companies | 3.6 | |||
Real Estate Development | 2.3 | |||
Hotels, Resorts & Cruise Lines | 0.8 | |||
Investment Funds | 1.3 | |||
Other Assets/Liabilities (Net) | 0.8 | |||
Total | 100.0 | % | ||
Touchstone International Fixed Income Fund | ||||
Credit Quality** | (% of Investment Securities) | |||
AAA/Aaa | 46.4 | % | ||
AA/Aa | 13.4 | |||
A/A | 7.7 | |||
BBB/Baa | 20.6 | |||
BB/Ba | 4.6 | |||
B/B | 1.4 | |||
NR | 5.9 | |||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
** Composite of Standard & Poor's and Moody's and Fitch ratings.
3 |
Tabular Presentation of Portfolios of Investments (Unaudited)
March 31, 2013 (Continued)
Touchstone Merger Arbitrage Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Long Positions | ||||
Common Stocks | ||||
Financials | 25.4 | % | ||
Consumer Discretionary | 12.8 | |||
Industrials | 9.0 | |||
Information Technology | 8.3 | |||
Consumer Staples | 5.8 | |||
Health Care | 4.8 | |||
Materials | 4.7 | |||
Telecommunication Services | 3.3 | |||
Energy | 2.9 | |||
Utilities | 1.1 | |||
Preferred Stocks | 2.5 | |||
Fixed Income Securities | 1.4 | |||
Investment Funds | 19.6 | |||
Cash Collateral for Securities Sold Short | 16.6 | |||
Other Assets/Liabilities (Net) | 1.1 | |||
119.3 | ||||
Short Positions | ||||
Financials | (11.7 | ) | ||
Consumer Discretionary | (2.4 | ) | ||
Information Technology | (2.2 | ) | ||
Materials | (1.5 | ) | ||
Health Care | (1.5 | ) | ||
(19.3 | ) | |||
Total | 100.0 | % | ||
Touchstone Mid Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Consumer Discretionary | 23.7 | % | ||
Financials | 18.7 | |||
Consumer Staples | 15.4 | |||
Materials | 14.1 | |||
Industrials | 7.1 | |||
Information Technology | 7.0 | |||
Energy | 5.4 | |||
Health Care | 3.9 | |||
Investment Funds | 31.1 | |||
Other Assets/Liabilities (Net) | (26.4 | ) | ||
Total | 100.0 | % | ||
Touchstone Mid Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 19.8 | % | ||
Information Technology | 11.4 | |||
Materials | 10.6 | |||
Industrials | 10.0 | |||
Consumer Discretionary | 9.6 | |||
Utilities | 8.1 | |||
Consumer Staples | 8.0 | |||
Energy | 7.6 | |||
Health Care | 6.8 | |||
Exchange Traded Fund | 1.9 | |||
Investment Funds | 9.1 | |||
Other Assets/Liabilities (Net) | (2.9 | ) | ||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
4 |
Tabular Presentation of Portfolios of Investments (Unaudited)
March 31, 2013 (Continued)
Touchstone Premium Yield Equity Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Energy | 24.8 | % | ||
Utilities | 15.0 | |||
Health Care | 15.0 | |||
Financials | 14.4 | |||
Information Technology | 8.2 | |||
Telecommunication Services | 6.9 | |||
Industrials | 5.9 | |||
Materials | 2.6 | |||
Consumer Discretionary | 1.9 | |||
Consumer Staples | 1.7 | |||
Investment Fund | 15.8 | |||
Other Assets/Liabilities (Net) | (12.2 | ) | ||
Total | 100.0 | % | ||
Touchstone Sands Capital Select Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 39.1 | % | ||
Consumer Discretionary | 24.1 | |||
Health Care | 19.7 | |||
Energy | 11.3 | |||
Materials | 2.8 | |||
Investment Funds | 6.5 | |||
Other Assets/Liabilities (Net) | (3.5 | ) | ||
Total | 100.0 | % | ||
Touchstone Short Duration Fixed Income Fund | ||||
Credit Quality** | (% of Investment Securities) | |||
AAA | 68.0 | % | ||
AA | 5.3 | |||
A | 15.1 | |||
BBB | 11.6 | |||
Total | 100.0 | % | ||
Touchstone Small Cap Core Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 23.2 | % | ||
Industrials | 15.9 | |||
Consumer Discretionary | 14.8 | |||
Materials | 14.0 | |||
Information Technology | 9.3 | |||
Consumer Staples | 7.8 | |||
Energy | 7.0 | |||
Health Care | 4.9 | |||
Investment Funds | 15.0 | |||
Other Assets/Liabilities (Net) | (11.9 | ) | ||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
** Composite of Standard & Poor's and Moody's and Fitch ratings.
5 |
Tabular Presentation of Portfolios of Investments (Unaudited)
March 31, 2013 (Continued)
Touchstone Small Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 25.7 | % | ||
Industrials | 17.8 | |||
Information Technology | 16.4 | |||
Consumer Discretionary | 12.5 | |||
Materials | 10.9 | |||
Energy | 5.1 | |||
Health Care | 4.3 | |||
Consumer Staples | 3.5 | |||
Utilities | 1.4 | |||
Investment Funds | 10.0 | |||
Other Assets/Liabilities (Net) | (7.6 | ) | ||
Total | 100.0 | % | ||
Touchstone Total Return Bond Fund | ||||
Credit Quality** | (% of Investment Securities) | |||
Aaa | 59.4 | % | ||
Aa | 4.9 | |||
A | 12.0 | |||
Baa | 17.1 | |||
Ba | 2.5 | |||
B | 2.4 | |||
NR | 1.7 | |||
Total | 100.0 | % | ||
Touchstone Ultra Short Duration Fixed Income Fund | ||||
Credit Quality** | (% of Investment Securities) | |||
AAA | 35.0 | % | ||
AA | 16.0 | |||
A | 19.8 | |||
BBB | 21.4 | |||
BB | 0.1 | |||
B | 0.1 | |||
CCC | 0.3 | |||
NR | 7.3 | |||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
** Composite of Standard & Poor's and Moody's and Fitch ratings.
6 |
Portfolio of Investments
Touchstone Emerging Markets Equity Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 97.8% | ||||||||
Brazil — 9.9% | ||||||||
All America Latina Logistica SA | 1,027,153 | $ | 5,113,527 | |||||
Banco Bradesco SA (Preference) | 558,683 | 9,424,974 | ||||||
Gerdau SA (Preference) | 623,331 | 4,771,956 | ||||||
Lojas Americanas SA (Preference) | 1,110,431 | 9,578,034 | ||||||
Lojas Renner SA | 293,873 | 10,944,888 | ||||||
Petroleo Brasileiro SA (Preference) | 777,359 | 7,066,725 | ||||||
Vale SA ADR† | 187,673 | 3,244,866 | ||||||
Vale SA (Preference) | 212,975 | 3,524,377 | ||||||
53,669,347 | ||||||||
India — 8.9% | ||||||||
Bharat Forge Ltd.* | 969,016 | 3,692,423 | ||||||
Bharat Heavy Electricals Ltd. | 969,422 | 3,157,087 | ||||||
Bharti Airtel Ltd.* | 1,764,768 | 9,473,249 | ||||||
ITC Ltd. | 1,966,493 | 11,196,527 | ||||||
Mahindra & Mahindra Ltd. | 594,366 | 9,419,088 | ||||||
Oil & Natural Gas Corp. Ltd.* | 1,191,670 | 6,827,711 | ||||||
Reliance Industries Ltd. | 282,688 | 4,020,047 | ||||||
Reliance Industries Ltd. GDR, 144a | 13,290 | 378,499 | ||||||
48,164,631 | ||||||||
South Africa — 7.7% | ||||||||
Aveng Ltd. | 1,329,517 | 4,665,809 | ||||||
Foschini Group Ltd. | 974,605 | 11,955,613 | ||||||
Impala Platinum Holdings Ltd. | 381,634 | 5,627,828 | ||||||
Massmart Holdings Ltd. | 175,034 | 3,621,439 | ||||||
MTN Group Ltd. | 371,018 | 6,515,501 | ||||||
Woolworths Holdings Ltd. | 1,260,141 | 9,675,155 | ||||||
42,061,345 | ||||||||
Mexico — 7.5% | ||||||||
America Movil SAB de CV, Series L ADR | 243,444 | 5,102,586 | ||||||
Fomento Economico Mexicano SAB de CV ADR | 59,443 | 6,746,780 | ||||||
Grupo Financiero Banorte SAB de CV - Class O | 1,396,820 | 11,159,677 | ||||||
Kimberly-Clark de Mexico SAB de CV - Class A | 2,858,797 | 9,977,998 | ||||||
Wal-Mart de Mexico SAB de CV - Class A | 2,390,959 | 7,820,519 | ||||||
40,807,560 | ||||||||
Bermuda — 6.3% | ||||||||
Credicorp Ltd. | 65,101 | 10,810,021 | ||||||
First Pacific Co. Ltd. | 8,461,367 | 11,467,054 | ||||||
VTech Holdings Ltd.† | 971,052 | 11,840,191 | ||||||
34,117,266 | ||||||||
Cayman Islands — 5.6% | ||||||||
ASM Pacific Technology Ltd. | 1,038,781 | 11,414,808 | ||||||
Daphne International Holdings Ltd. | 8,830,445 | 11,091,309 | ||||||
Tingyi Cayman Islands Holding Corp. | 3,084,510 | 8,046,497 | ||||||
30,552,614 | ||||||||
Korea — 5.5% | ||||||||
BS Financial Group, Inc. | 559,527 | 7,593,796 | ||||||
POSCO | 9,814 | 2,884,395 | ||||||
Samsung Electronics Co. Ltd. | 11,095 | 15,057,927 | ||||||
Shinhan Financial Group Co. Ltd. | 126,466 | 4,529,633 | ||||||
30,065,751 | ||||||||
Thailand — 5.5% | ||||||||
Kasikornbank PCL | 1,909,016 | 13,624,189 | ||||||
PTT Exploration & Production PCL | 1,230,370 | 6,239,028 | ||||||
Siam Cement PCL | 132,814 | 2,195,048 | ||||||
Siam Cement PCL (Non- Voting) | 151,425 | 2,481,953 | ||||||
Thai Oil PCL | 2,434,023 | 5,319,360 | ||||||
29,859,578 | ||||||||
Hong Kong — 5.5% | ||||||||
China Overseas Land & Investment Ltd. | 3,583,261 | 9,878,427 | ||||||
CNOOC Ltd. | 3,928,077 | 7,549,956 | ||||||
Wharf Holdings Ltd. | 1,385,127 | 12,347,848 | ||||||
29,776,231 | ||||||||
Turkey — 5.4% | ||||||||
Akbank TAS | 1,102,180 | 5,787,161 | ||||||
Trakya Cam Sanayi AS* | 4,528,346 | 7,082,970 | ||||||
Tupras Turkiye Petrol Rafine | 231,312 | 6,967,615 | ||||||
Turkcell Iletisim Hizmetleri AS* | 960,674 | 6,451,218 | ||||||
Turkiye Garanti Bankasi AS | 575,182 | 3,051,869 | ||||||
29,340,833 | ||||||||
China — 4.8% | ||||||||
China BlueChemical Ltd. | 8,686,968 | 5,382,809 | ||||||
Industrial & Commercial Bank of China - Class H | 13,723,761 | 9,617,620 | ||||||
PetroChina Co. Ltd. - Class H | 4,000,945 | 5,246,938 | ||||||
Weichai Power Co. Ltd. - Class H | 1,827,979 | 6,087,338 | ||||||
26,334,705 | ||||||||
Taiwan — 4.2% | ||||||||
Giant Manufacturing Co. Ltd. | 1,802,830 | 10,158,912 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 3,734,355 | 12,488,437 | ||||||
22,647,349 | ||||||||
Indonesia — 3.9% | ||||||||
Bank Mandiri Persero Tbk PT | 10,474,002 | 10,778,494 | ||||||
Telekomunikasi Indonesia Tbk PT | 9,019,070 | 10,209,392 | ||||||
20,987,886 | ||||||||
United Kingdom — 3.1% | ||||||||
Fresnillo PLC | 305,062 | 6,285,448 | ||||||
SABMiller PLC | 201,102 | 10,584,801 | ||||||
16,870,249 | ||||||||
Malaysia — 2.4% | ||||||||
British American Tobacco Malaysia Bhd | 362,903 | 7,322,519 | ||||||
CIMB Group Holdings Bhd | 2,390,193 | 5,905,046 | ||||||
13,227,565 | ||||||||
Canada — 2.0% | ||||||||
Eldorado Gold Corp. | 456,612 | 4,364,525 |
7 |
Touchstone Emerging Markets Equity Fund
March 31, 2013 (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.8% (Continued) | ||||||||
Canada — (Continued) | ||||||||
Yamana Gold, Inc. | 422,053 | $ | 6,502,072 | |||||
10,866,597 | ||||||||
Jersey — 1.8% | ||||||||
Randgold Resources Ltd. ADR | 116,564 | 10,022,173 | ||||||
Luxembourg — 1.7% | ||||||||
Tenaris SA ADR† | 225,728 | 9,205,188 | ||||||
South Korea — 1.4% | ||||||||
Hankook Tire Co. Ltd. | 181,710 | 7,847,533 | ||||||
Singapore — 1.3% | ||||||||
Keppel Land Ltd. | 2,248,189 | 7,141,424 | ||||||
Chile — 1.3% | ||||||||
Enersis SA | 17,755,107 | 6,865,183 | ||||||
Israel — 1.1% | ||||||||
Teva Pharmaceutical Industries Ltd. ADR | 152,296 | 6,043,105 | ||||||
Czech Republic — 0.9% | ||||||||
CEZ AS | 173,678 | 5,083,014 | ||||||
United States — 0.1% | ||||||||
Southern Copper Corp. | 10,025 | 376,639 | ||||||
Total Common Stocks | $ | 531,933,766 | ||||||
Investment Funds— 3.4% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 7,893,533 | 7,893,533 | ||||||
Touchstone Institutional Money Market Fund^ | 10,750,610 | 10,750,610 | ||||||
Total Investment Funds | $ | 18,644,143 | ||||||
Total Investment Securities —101.2% | ||||||||
(Cost $526,004,379) | $ | 550,577,909 | ||||||
Liabilities in Excess of Other Assets — (1.2%) | (6,437,373 | ) | ||||||
Net Assets — 100.0% | $ | 544,140,536 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $7,662,254. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
PCL - Public Company Limited
PLC - Public Limited Company
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, 2013, these securities were valued at $378,499 or 0.1% 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 | $ | 531,933,766 | $ | — | $ | — | $ | 531,933,766 | ||||||||
Investment Funds | 18,644,143 | — | — | 18,644,143 | ||||||||||||
$ | 550,577,909 |
8 |
Touchstone Emerging Markets Equity Fund
March 31, 2013 (Unaudited) (Continued)
Level 3 Rollforward Disclosure
The following is a rollforward of the Fund's investments that were valued using unobservable inputs for the period ended March 31, 2013:
Measurements Using Unobservable Inputs (Level 3)
Common Stock | ||||||||
South | ||||||||
Assets | Korea | Total | ||||||
Beginning balance | $ | 7,297,728 | $ | 7,297,728 | ||||
Net change in unrealized appreciation/depreciation | (29,536 | ) | (29,536 | ) | ||||
Net transfers out of Level 3 | (7,268,192 | )(a) | (7,268,192 | ) | ||||
Ending balance | $ | — | $ | — |
(a)Transferred from Level 3 to Level 1 due to availability of observable valuation inputs.
See accompanying Notes to Financial Statements.
9 |
Portfolio of Investments
Touchstone Focused Equity Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 95.1% | ||||||||
Financials — 18.5% | ||||||||
Allstate Corp. (The) | 90,657 | $ | 4,448,539 | |||||
Bank of America Corp. | 513,097 | 6,249,521 | ||||||
Bank of New York Mellon Corp. (The) | 289,382 | 8,099,802 | ||||||
CME Group, Inc. | 41,267 | 2,533,381 | ||||||
Goldman Sachs Group, Inc. (The) | 53,103 | 7,814,106 | ||||||
29,145,349 | ||||||||
Industrials — 15.4% | ||||||||
Alliant Techsystems, Inc. | 85,106 | 6,164,228 | ||||||
Esterline Technologies Corp.* | 50,147 | 3,796,128 | ||||||
General Dynamics Corp. | 41,552 | 2,929,832 | ||||||
Kennametal, Inc. | 69,054 | 2,695,868 | ||||||
Oshkosh Corp.* | 80,595 | 3,424,482 | ||||||
Universal Forest Products, Inc. | 132,343 | 5,268,575 | ||||||
24,279,113 | ||||||||
Information Technology — 12.7% | ||||||||
Adobe Systems, Inc.* | 87,820 | 3,821,048 | ||||||
Apple, Inc. | 10,009 | 4,430,284 | ||||||
Avnet, Inc.* | 73,792 | 2,671,270 | ||||||
Google, Inc. - Class A* | 8,238 | 6,541,219 | ||||||
Microsoft Corp. | 88,947 | 2,544,774 | ||||||
20,008,595 | ||||||||
Consumer Staples — 12.2% | ||||||||
CVS Caremark Corp. | 45,596 | 2,507,324 | ||||||
Mondelez International, Inc. - Class A | 272,201 | 8,332,073 | ||||||
Sysco Corp. | 173,254 | 6,093,343 | ||||||
Tesco PLC ADR | 131,979 | 2,305,673 | ||||||
19,238,413 | ||||||||
Consumer Discretionary — 10.9% | ||||||||
Carnival Corp. | 119,262 | 4,090,687 | ||||||
International Speedway Corp. - Class A | 93,771 | 3,064,436 | ||||||
Royal Caribbean Cruises Ltd. | 102,843 | 3,416,444 | ||||||
Sotheby's | 46,436 | 1,737,171 | ||||||
Speedway Motorsports, Inc. | 107,726 | 1,937,991 | ||||||
Time Warner Cable, Inc. | 31,278 | 3,004,565 | ||||||
17,251,294 | ||||||||
Energy — 10.4% | ||||||||
Devon Energy Corp. | 64,151 | 3,619,399 | ||||||
Exxon Mobil Corp. | 38,865 | 3,502,125 | ||||||
Halliburton Co. | 61,703 | 2,493,418 | ||||||
National Oilwell Varco, Inc. | 48,509 | 3,432,012 | ||||||
World Fuel Services Corp. | 83,497 | 3,316,501 | ||||||
16,363,455 | ||||||||
Health Care — 7.9% | ||||||||
Owens & Minor, Inc.† | 180,205 | 5,867,475 | ||||||
WellPoint, Inc. | 99,687 | 6,602,270 | ||||||
12,469,745 | ||||||||
Telecommunication Services — 7.1% | ||||||||
France Telecom SA ADR | 359,703 | 3,654,582 | ||||||
KDDI Corp. ADR | 361,475 | 7,518,680 | ||||||
11,173,262 | ||||||||
Total Common Stocks | $ | 149,929,226 | ||||||
Investment Funds— 7.6% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 4,454,850 | 4,454,850 | ||||||
Touchstone Institutional Money Market Fund^ | 7,455,749 | 7,455,749 | ||||||
Total Investment Funds | $ | 11,910,599 | ||||||
Total Investment Securities —102.7% | ||||||||
(Cost $147,935,605) | $ | 161,839,825 | ||||||
Liabilities in Excess of Other Assets — (2.7%) | (4,199,010) | |||||||
Net Assets — 100.0% | $ | 157,640,815 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $4,363,887. |
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 | $ | 149,929,226 | $ | — | $ | — | $ | 149,929,226 | ||||||||
Investment Funds | 11,910,599 | — | — | 11,910,599 | ||||||||||||
$ | 161,839,825 |
See accompanying Notes to Financial Statements.
10 |
Portfolio of Investments
Touchstone Global Real Estate Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 97.9% | ||||||||
United States — 46.1% | ||||||||
Acadia Realty Trust REIT | 8,120 | $ | 225,492 | |||||
Apartment Investment & Management Co. REIT | 11,180 | 342,779 | ||||||
AvalonBay Communities, Inc. REIT | 2,380 | 301,475 | ||||||
BioMed Realty Trust, Inc. REIT | 3,710 | 80,136 | ||||||
Boston Properties, Inc. REIT | 4,505 | 455,275 | ||||||
Camden Property Trust REIT | 6,310 | 433,371 | ||||||
Coresite Realty Corp. REIT | 2,941 | 102,876 | ||||||
CubeSmart REIT | 15,248 | 240,918 | ||||||
DDR Corp. REIT | 14,750 | 256,945 | ||||||
Digital Realty Trust, Inc. REIT | 1,672 | 111,874 | ||||||
Douglas Emmett, Inc. REIT | 8,260 | 205,922 | ||||||
Duke Realty Corp. REIT | 24,350 | 413,463 | ||||||
Equity Residential REIT | 4,993 | 274,915 | ||||||
Extra Space Storage, Inc. REIT | 8,929 | 350,642 | ||||||
First Industrial Realty Trust, Inc. REIT | 14,060 | 240,848 | ||||||
General Growth Properties, Inc. REIT | 22,003 | 437,420 | ||||||
HCP, Inc. REIT | 9,910 | 494,113 | ||||||
Health Care REIT, Inc. REIT | 354 | 24,040 | ||||||
Host Hotels & Resorts, Inc. REIT | 28,123 | 491,871 | ||||||
Hudson Pacific Properties, Inc. REIT | 7,090 | 154,208 | ||||||
Lexington Realty Trust REIT | 4,580 | 54,044 | ||||||
Post Properties, Inc. REIT | 5,280 | 248,688 | ||||||
ProLogis, Inc. REIT | 9,188 | 367,336 | ||||||
Public Storage REIT | 1,400 | 213,248 | ||||||
Ramco-Gershenson Properties Trust REIT | 7,880 | 132,384 | ||||||
Simon Property Group, Inc. REIT | 8,026 | 1,272,603 | ||||||
SL Green Realty Corp. REIT | 8,400 | 723,324 | ||||||
STAG Industrial, Inc. REIT | 1,520 | 32,330 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 2,850 | 181,630 | ||||||
Strategic Hotels & Resorts, Inc. REIT* | 17,683 | 147,653 | ||||||
Sunstone Hotel Investors, Inc. REIT* | 18,100 | 222,811 | ||||||
Taubman Centers, Inc. REIT | 2,700 | 209,682 | ||||||
UDR, Inc. REIT | 726 | 17,563 | ||||||
Ventas, Inc. REIT | 10,112 | 740,198 | ||||||
Weyerhaeuser Co. REIT | 4,943 | 155,111 | ||||||
10,357,188 | ||||||||
Japan — 12.1% | ||||||||
Aeon Mall Co. Ltd. | 1,500 | 45,637 | ||||||
Daiwa House REIT Investment Corp. | 12 | 100,961 | ||||||
Frontier Real Estate Investment Corp. REIT | 3 | 34,196 | ||||||
Industrial & Infrastructure Fund Investment Corp. REIT | 14 | 154,523 | ||||||
Japan Real Estate Investment Corp. REIT | 9 | 124,385 | ||||||
Japan Retail Fund Investment Corp. REIT | 20 | 49,503 | ||||||
Mitsubishi Estate Co. Ltd. | 26,000 | 732,204 | ||||||
Mitsui Fudosan Co. Ltd. | 24,000 | 681,234 | ||||||
Nippon Building Fund, Inc. REIT | 9 | 125,819 | ||||||
Nippon Prologis REIT, Inc.* | 19 | 206,884 | ||||||
NTT Urban Development Corp. | 16 | 19,172 | ||||||
Sumitomo Realty & Development Co. Ltd. | 9,000 | 348,489 | ||||||
Tokyo Tatemono Co. Ltd. | 5,000 | 35,482 | ||||||
Tokyu Land Corp. | 5,000 | 46,848 | ||||||
United Urban Investment Corp. REIT | 17 | 27,703 | ||||||
2,733,040 | ||||||||
Hong Kong — 9.0% | ||||||||
Cheung Kong Holdings Ltd. | 16,000 | 236,211 | ||||||
Hang Lung Properties Ltd. | 77,200 | 288,410 | ||||||
Henderson Land Development Co. Ltd. | 14,000 | 95,767 | ||||||
Link REIT (The) REIT | 52,300 | 284,995 | ||||||
Shimao Property Holdings Ltd. | 17,500 | 33,591 | ||||||
Sino Land Co. Ltd. | 18,000 | 30,516 | ||||||
Sun Hung Kai Properties Ltd. | 45,380 | 611,493 | ||||||
Swire Properties Ltd. | 5,200 | 18,455 | ||||||
Wharf Holdings Ltd. | 32,199 | 287,041 | ||||||
Yuexiu Real Estate Investment Trust REIT | 236,000 | 134,074 | ||||||
2,020,553 | ||||||||
Australia — 6.7% | ||||||||
Dexus Property Group REIT | 59,837 | 64,791 | ||||||
Goodman Group REIT | 37,436 | 186,307 | ||||||
GPT Group REIT | 58,700 | 226,738 | ||||||
Mirvac Group REIT | 35,049 | 59,116 | ||||||
Stockland REIT | 62,300 | 236,751 | ||||||
Westfield Group REIT | 57,920 | 654,289 | ||||||
Westfield Retail Trust REIT | 27,075 | 85,131 | ||||||
1,513,123 | ||||||||
Singapore — 6.4% | ||||||||
Ascendas Real Estate Investment Trust REIT | 96,800 | 202,910 | ||||||
CapitaLand Ltd. | 94,000 | 267,521 | ||||||
CapitaMall Trust REIT | 150,000 | 252,751 | ||||||
City Developments Ltd. | 8,000 | 73,076 | ||||||
First Real Estate Investment Trust REIT | 125,000 | 125,972 | ||||||
Global Logistic Properties Ltd. | 69,250 | 146,277 | ||||||
Keppel Land Ltd. | 44,000 | 139,767 | ||||||
Suntec Real Estate Investment Trust REIT | 161,000 | 233,644 | ||||||
1,441,918 | ||||||||
United Kingdom — 5.2% | ||||||||
British Land Co. PLC REIT | 37,592 | 310,444 | ||||||
Derwent London PLC REIT | 7,880 | 257,666 | ||||||
Development Securities PLC | 12,980 | 29,682 | ||||||
Great Portland Estates PLC REIT | 19,820 | 149,343 | ||||||
Hammerson PLC REIT | 21,020 | 157,108 | ||||||
Land Securities Group PLC REIT | 22,070 | 278,000 | ||||||
1,182,243 | ||||||||
France — 3.9% | ||||||||
Klepierre REIT | 5,299 | 208,158 | ||||||
Unibail-Rodamco SE REIT | 2,879 | 670,556 | ||||||
878,714 | ||||||||
Canada — 3.6% | ||||||||
Brookfield Office Properties, Inc. | 6,105 | 104,811 | ||||||
Canadian Apartment Properties REIT† | 11,165 | 277,188 |
11 |
Touchstone Global Real Estate Fund
March 31, 2013 (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.9% (Continued) | ||||||||
Canada — (Continued) | ||||||||
Canadian Real Estate Investment Trust REIT | 4,780 | $ | 211,556 | |||||
H&R Real Estate Investment Trust REIT | 958 | 22,058 | ||||||
Morguard Real Estate Investment Trust REIT | 9,297 | 163,088 | ||||||
Primaris Retail Real Estate Investment Trust REIT | 979 | 26,242 | ||||||
804,943 | ||||||||
Netherlands — 1.1% | ||||||||
Corio NV REIT | 2,325 | 108,468 | ||||||
Eurocommercial Properties NV REIT | 1,806 | 66,106 | ||||||
Vastned Retail NV REIT | 1,644 | 68,173 | ||||||
242,747 | ||||||||
Bermuda — 1.0% | ||||||||
Hongkong Land Holdings Ltd. | 30,065 | 222,782 | ||||||
Germany — 0.9% | ||||||||
Alstria Office REIT-AG | 17,730 | 199,773 | ||||||
Cayman Islands — 0.9% | ||||||||
Longfor Properties Co. Ltd. | 50,500 | 83,532 | ||||||
New World Development Co. Ltd. | 68,000 | 115,106 | ||||||
198,638 | ||||||||
Sweden — 0.7% | ||||||||
Hufvudstaden AB - Class A | 12,516 | 157,109 | ||||||
China — 0.3% | ||||||||
PSP Swiss Property AG | 194 | 17,677 | ||||||
Swiss Prime Site AG | 685 | 55,454 | ||||||
73,131 | ||||||||
Total Common Stocks | $ | 22,025,902 | ||||||
Investment Funds— 1.3% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 82,560 | 82,560 | ||||||
Touchstone Institutional Money Market Fund^ | 206,438 | 206,438 | ||||||
Total Investment Funds | $ | 288,998 | ||||||
Total Investment Securities —99.2% | ||||||||
(Cost $20,329,877) | $ | 22,314,900 | ||||||
Other Assets in Excess of Liabilities — 0.8% | 169,423 | |||||||
Net Assets — 100.0% | $ | 22,484,323 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $79,445. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 22,025,902 | $ | — | $ | — | $ | 22,025,902 | ||||||||
Investment Funds | 288,998 | — | — | 288,998 | ||||||||||||
$ | 22,314,900 |
See accompanying Notes to Financial Statements.
12 |
Portfolio of Investments
Touchstone International Fixed Income Fund – March 31, 2013 (Unaudited)
Principal | Market | |||||||
Amount(A) | Value | |||||||
Corporate Bonds— 46.5% | ||||||||
Financials — 42.0% | ||||||||
$ | 70,000,000 | Asian Development Bank MTN (JPY), | ||||||
2.350%, 6/21/27 | $ | 884,782 | ||||||
300,000 | Asian Development Bank MTN (NOK), | |||||||
2.000%, 8/29/17 | 51,375 | |||||||
200,000 | Barclays Bank PLC, 5.200%, 7/10/14 | 210,920 | ||||||
200,000 | Danske Bank A/S, 144a, | |||||||
3.875%, 4/14/16 | 212,650 | |||||||
300,000 | Derwent London Capital Jersey Ltd. | |||||||
(GBP), 2.750%, 7/15/16 | 517,603 | |||||||
40,000,000 | Deutsche Bank AG/London (EUR), | |||||||
0.000%, 3/19/14 | 511,691 | |||||||
400,000 | Dexia Credit Local SA (GBP), | |||||||
0.915%, 4/1/14(B) | 605,692 | |||||||
50,000,000 | Dexia Municipal Agency SA (JPY), | |||||||
1.800%, 5/9/17 | 539,161 | |||||||
450,000 | European Financial Stability Facility | |||||||
(EUR), 2.750%, 7/18/16 | 617,780 | |||||||
150,000 | European Investment Bank (GBP), | |||||||
6.000%, 12/7/28 | 306,778 | |||||||
40,000,000 | European Investment Bank (JPY), | |||||||
1.900%, 1/26/26 | 467,158 | |||||||
90,000,000 | European Investment Bank (JPY), | |||||||
2.150%, 1/18/27 | 1,074,047 | |||||||
500,000 | European Union (EUR), | |||||||
2.750%, 9/21/21 | 699,560 | |||||||
85,000 | European Union (EUR), 3.500%, 6/4/21 | 125,374 | ||||||
300,000 | German Postal Pensions Securitisation | |||||||
PLC (EUR), 3.375%, 1/18/16 | 413,435 | |||||||
100,000 | INTU Jersey Ltd. (GBP), | |||||||
2.500%, 10/4/18 | 159,771 | |||||||
300,000 | Kreditanstalt fuer Wiederaufbau (EUR), | |||||||
1.500%, 7/30/14 | 498,769 | |||||||
90,000,000 | Kreditanstalt fuer Wiederaufbau (EUR), | |||||||
2.600%, 6/20/37 | 1,160,456 | |||||||
500,000 | Kreditanstalt fuer Wiederaufbau (EUR), | |||||||
3.375%, 1/18/21 | 737,917 | |||||||
300,000 | LCR Finance PLC (GBP), | |||||||
4.500%, 12/7/28 | 543,577 | |||||||
400,000 | Merrill Lynch & Co., Inc. (EUR), | |||||||
0.510%, 5/30/14(B) | 510,869 | |||||||
2,200,000 | Nordic Investment Bank (NOK), | |||||||
2.125%, 8/9/17 | 377,794 | |||||||
300,000 | Northern Rock Asset Management | |||||||
PLC (EUR), 3.875%, 11/16/20 | 436,260 | |||||||
250,000 | Northern Rock Asset Management | |||||||
PLC (EUR), 4.125%, 3/27/17 | 357,879 | |||||||
1,000,000 | Stadshypotek AB (SEK), | |||||||
6.000%, 3/18/15 | 166,541 | |||||||
250,000 | Temasek Financial III Pte Ltd. (SGD), | |||||||
0.000%, 10/24/14 | 214,677 | |||||||
12,402,516 | ||||||||
Communications — 3.1% | ||||||||
429,200 | Cap Gemini SA (EUR), 3.500%, 1/1/14 | 212,256 | ||||||
100,000 | ITV PLC, 4.000%, 11/9/16 | 287,633 | ||||||
100,000 | Nara Cable Funding Ltd. (EUR), | |||||||
8.875%, 12/1/18 | 134,274 | |||||||
100,000 | WPP PLC (GBP), 5.750%, 5/19/14 | 271,831 | ||||||
905,994 | ||||||||
Industrials — 1.4% | ||||||||
100,000 | Rexel SA (EUR), 7.000%, 12/17/18 | 140,812 | ||||||
200,000 | Xefin Lux SCA (EUR), 8.000%, 6/1/18 | 276,880 | ||||||
417,692 | ||||||||
Total Corporate Bonds | $ | 13,726,202 | ||||||
Sovereign Government Obligations — 48.9% | ||||||||
250,000 | Belgium Government Bond, Ser 56 | |||||||
(EUR), 3.500%, 3/28/15 | 341,367 | |||||||
500,000 | Bundesobligation (EUR), | |||||||
0.500%, 4/7/17 | 649,926 | |||||||
500,000 | Bundesrepublik Deutschland (EUR), | |||||||
2.250%, 9/4/20 | 709,442 | |||||||
500,000 | Bundesrepublik Deutschland (EUR), | |||||||
4.000%, 1/4/18 | 753,858 | |||||||
580,000 | Canadian Government Bond (CAD), | |||||||
4.000%, 6/1/16 | 621,571 | |||||||
570,000 | Canadian Government Bond (CAD), | |||||||
5.000%, 6/1/14 | 586,934 | |||||||
100,000,000 | Development Bank of Japan, Inc. | |||||||
(JPY), 1.700%, 9/20/22 | 1,177,054 | |||||||
300,000 | France Government Bond OAT (EUR), | |||||||
2.250%, 10/25/22 | 392,155 | |||||||
500,000 | France Government Bond OAT (EUR), | |||||||
5.000%, 10/25/16 | 742,464 | |||||||
150,000 | Ireland Government Bond (EUR), | |||||||
5.500%, 10/18/17 | 212,727 | |||||||
500,000 | Italy Buoni Poliennali Del Tesoro (EUR), | |||||||
2.000%, 6/1/13 | 641,824 | |||||||
500,000 | Italy Buoni Poliennali Del Tesoro (EUR), | |||||||
3.750%, 3/1/21 | 627,521 | |||||||
500,000 | Italy Buoni Poliennali Del Tesoro (EUR), | |||||||
4.750%, 8/1/23 | 647,145 | |||||||
1,000,000 | Italy Buoni Poliennali del Tesoro | |||||||
Coupon Strip (EUR), 0.000%, 5/1/29 | 543,407 | |||||||
60,000,000 | Japan Finance Organization for | |||||||
Municipalities (JPY), 2.000%, 5/9/16 | 676,727 | |||||||
5,000,000 | Mexican Bonos, Ser M20 (MXN), | |||||||
8.000%, 12/7/23(C) | 505,068 | |||||||
3,000,000 | Mexican Bonos, Ser M20 (MXN), | |||||||
10.000%, 12/5/24(C) | 349,262 | |||||||
3,500,000 | Norway Government Bond (NOK), | |||||||
2.000%, 5/24/23 | 590,789 | |||||||
500,000 | Portugal Obrigacoes do Tesouro OT | |||||||
(EUR), 4.200%, 10/15/16 | 631,851 | |||||||
200,000 | Portugal Obrigacoes do Tesouro OT | |||||||
(EUR), 4.375%, 6/16/14 | 259,961 | |||||||
2,900,000 | South Africa Government Bond (ZAR), | |||||||
7.250%, 1/15/20 | 329,444 |
13 |
Touchstone International Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount(A) | Value | |||||||
Sovereign Government Obligations — 48.9% (Continued) | ||||||||
$ | 2,000,000 | Spain Government Bond Principal | ||||||
Strip (EUR), 0.000%, 1/31/37 | $ | 653,187 | ||||||
4,000,000 | Sweden Government Bond (SEK), | |||||||
1.500%, 11/13/23 | 595,831 | |||||||
4,500,000 | Sweden Government Bond, Ser 1049 | |||||||
(SEK), 4.500%, 8/12/15 | 746,117 | |||||||
250,000 | United Kingdom Gilt (GBP), | |||||||
8.000%, 12/7/15 | 459,104 | |||||||
Total Sovereign Government Obligations | $ | 14,444,736 | ||||||
U.S. Treasury Obligation — 0.7% | ||||||||
200,000 | U.S. Treasury Note, 3.000%, 2/28/17 | 219,000 | ||||||
Shares | ||||||||
Investment Fund — 1.9% | ||||||||
550,506 | Touchstone Institutional Money Market Fund^ | 550,506 | ||||||
Total Investment Securities —98.0% | ||||||||
(Cost $29,014,392) | $ | 28,940,444 | ||||||
Other Assets in Excess of Liabilities —2.0% | 582,409 | |||||||
�� | ||||||||
Net Assets — 100.0% | $ | 29,522,853 |
(A) | Principal amount stated in U.S. dollars unless otherwise noted. |
(B) | Variable rate security - the rate reflected is the rate in effect as of March 31, 2013. |
(C) | Amount shown represents units. One unit represents a principal amount of 100. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
Portfolio Abbreviations:
AUD - Australian Dollar | MXN - Mexican Peso |
BRL - Brazil Real | NOK - Norwegian Krone |
CAD - Canadian Dollar | NZD - New Zealand Dollar |
CHF - Swiss Franc | PLC - Public Limited Company |
EUR - Euro | PLN - Polish Zloty |
GBP - British Pound | SEK - Swedish Krona |
HKD - Hong Kong Dollar | SGD - Singapore Dollar |
INR - Indian Rupee | TRY - Turkey Lira |
JPY - Japanese Yen | ZAR - South African Rand |
MTN - Medium Term Note
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, 2013, these securities were valued at $212,650 or 0.7% 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 | $ | — | $ | 13,726,202 | $ | — | $ | 13,726,202 | ||||||||
Sovereign Government Obligations | — | 14,444,736 | — | 14,444,736 | ||||||||||||
U.S. Treasury Obligation | — | 219,000 | — | 219,000 | ||||||||||||
Investment Fund | 550,506 | — | — | 550,506 | ||||||||||||
$ | 28,940,444 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Other Financial Instruments* | ||||||||||||||||
Assets: | ||||||||||||||||
Forward Currency Contracts | $ | — | $ | 727,997 | $ | — | $ | 727,997 | ||||||||
Liabilities: | ||||||||||||||||
Forward Currency Contracts | $ | — | $ | (519,448 | ) | $ | — | $ | (519,448 | ) |
* Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized appreciation (depreciation).
14 |
Touchstone International Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Forward Foreign Currency Exchange Contracts
Unrealized | ||||||||||||||||||||||||
Contract to | Appreciation/ | |||||||||||||||||||||||
Counterparty | Value Date | Receive | Deliver | (Depreciation) | ||||||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | CAD | 189,000 | USD | 186,017 | $ | 3 | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | CAD | (189,000 | ) | USD | (183,702 | ) | (2,317 | ) | |||||||||||||||
Brown Brothers Harriman | 04/05/2013 | EUR | 1,009,500 | USD | 1,296,315 | (2,217 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | EUR | 886,500 | USD | 1,161,324 | (24,902 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | EUR | (1,896,000 | ) | USD | (2,479,285 | ) | 48,766 | ||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | GBP | �� | 225,500 | USD | 342,239 | 383 | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | GBP | (225,500 | ) | USD | (342,407 | ) | (216 | ) | |||||||||||||||
Brown Brothers Harriman | 04/05/2013 | MXN | 2,196,500 | USD | 176,540 | 1,158 | ||||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | MXN | (2,196,500 | ) | USD | (177,952 | ) | 254 | ||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | NOK | 3,440,500 | USD | 589,839 | (974 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | NOK | (3,440,500 | ) | USD | (603,075 | ) | 14,210 | ||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | SEK | 3,772,000 | USD | 580,103 | (1,371 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | SEK | (3,772,000 | ) | USD | (591,248 | ) | 12,516 | ||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | ZAR | 1,480,000 | USD | 161,274 | (497 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/05/2013 | ZAR | (1,480,000 | ) | USD | (164,227 | ) | 3,450 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | AUD | 226,000 | CAD | 233,199 | 1,769 | ||||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | AUD | 260,000 | GBP | 268,282 | 2,035 | ||||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | AUD | (486,000 | ) | JPY | (498,495 | ) | (6,790 | ) | |||||||||||||||
Brown Brothers Harriman | 04/16/2013 | BRL | 1,285,678 | EUR | 646,703 | (11,828 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | CAD | (231,734 | ) | AUD | (233,199 | ) | 5,174 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | CAD | 200,000 | CHF | 200,652 | (3,853 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | CAD | 600,000 | PLN | 601,956 | (11,559 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | CHF | (182,572 | ) | CAD | (200,652 | ) | 8,283 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | CHF | 100,000 | EUR | 109,830 | (4,464 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | CHF | 170,000 | JPY | 186,711 | (7,588 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (475,000 | ) | BRL | (646,703 | ) | 37,748 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (81,048 | ) | CHF | (109,830 | ) | 5,926 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (500,000 | ) | GBP | (675,745 | ) | 34,740 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (143,174 | ) | HKD | (193,439 | ) | 9,888 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | 1,500,000 | JPY | 2,030,705 | (107,690 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (900,000 | ) | JPY | (1,215,104 | ) | 61,295 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | 371,761 | NZD | 503,291 | (26,690 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (200,000 | ) | PLN | (273,553 | ) | 17,151 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | 1,450,000 | USD | 1,959,835 | (100,920 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | EUR | (2,386,000 | ) | USD | (3,224,941 | ) | 166,066 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | (170,329 | ) | AUD | (268,282 | ) | 9,502 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | 431,720 | EUR | 675,745 | (19,835 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | 125,000 | SEK | 195,655 | (5,743 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | (982,000 | ) | USD | (1,537,046 | ) | 45,097 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | (1,022,221 | ) | USD | (1,600,000 | ) | 46,945 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | 412,550 | ZAR | 631,264 | (4,479 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | GBP | (400,000 | ) | ZAR | (631,256 | ) | 23,538 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | HKD | 1,500,000 | EUR | 193,439 | (183 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | HKD | 1,594,000 | USD | 205,640 | (274 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | INR | 32,292,000 | USD | 600,000 | (8,256 | ) |
15 |
Touchstone International Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Unrealized | ||||||||||||||||||||||||
Contract to | Appreciation/ | |||||||||||||||||||||||
Counterparty | Value Date | Receive | Deliver | (Depreciation) | ||||||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | 46,631,700 | AUD | 498,495 | $ | (3,063 | ) | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | (17,422,110 | ) | CHF | (186,711 | ) | 1,612 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | 113,484,600 | EUR | 1,215,104 | (9,403 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | (189,688,500 | ) | EUR | (2,030,705 | ) | 15,387 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | (36,705,350 | ) | MXN | (394,815 | ) | 4,845 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | 41,475,334 | SEK | 443,373 | (2,724 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | (52,558,000 | ) | TRY | (566,316 | ) | 7,921 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | 560,474,454 | USD | 5,990,983 | (36,305 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | (564,024,000 | ) | USD | (6,000,000 | ) | 7,610 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | 57,607,000 | ZAR | 615,986 | (3,949 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | JPY | (57,168,925 | ) | ZAR | (616,108 | ) | 8,725 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | MXN | 5,000,000 | JPY | 394,815 | 9,264 | ||||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | NZD | (600,000 | ) | EUR | (503,291 | ) | 1,904 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | NZD | 358,299 | USD | 300,000 | (589 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | PLN | (1,870,428 | ) | CAD | (601,956 | ) | 28,577 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | PLN | 842,640 | EUR | 273,553 | (15,242 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | PLN | 1,559,045 | USD | 500,000 | (22,075 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | SEK | (1,245,454 | ) | GBP | (195,655 | ) | 4,613 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | SEK | (2,821,960 | ) | JPY | (443,373 | ) | 10,509 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | SEK | (2,600,000 | ) | TRY | (411,706 | ) | 12,889 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | TRY | 1,000,000 | JPY | 566,316 | (14,931 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | TRY | 726,990 | SEK | 411,706 | (10,855 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | ZAR | 5,635,224 | GBP | 631,256 | (19,991 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | ZAR | (5,635,224 | ) | GBP | (631,264 | ) | 19,999 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | ZAR | 5,500,000 | JPY | 616,108 | (19,512 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | ZAR | (5,500,000 | ) | JPY | (615,986 | ) | 19,389 | ||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | ZAR | 2,699,925 | USD | 300,000 | (7,133 | ) | |||||||||||||||||
Brown Brothers Harriman | 04/16/2013 | ZAR | (2,699,925 | ) | USD | (302,259 | ) | 9,392 | ||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | CAD | (189,000 | ) | USD | (185,892 | ) | 7 | ||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | EUR | (1,009,500 | ) | USD | (1,296,567 | ) | 2,190 | ||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | GBP | 225,500 | USD | 342,350 | 212 | ||||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | MXN | 2,196,500 | USD | 177,453 | (307 | ) | |||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | NOK | (3,440,500 | ) | USD | (589,080 | ) | 964 | ||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | SEK | (3,772,000 | ) | USD | (579,690 | ) | 1,361 | ||||||||||||||||
Brown Brothers Harriman | 05/07/2013 | ZAR | (1,480,000 | ) | USD | (160,573 | ) | 496 | ||||||||||||||||
Brown Brothers Harriman | 05/08/2013 | GBP | (114,000 | ) | USD | (172,456 | ) | (723 | ) | |||||||||||||||
Brown Brothers Harriman | 05/08/2013 | JPY | (56,225,000 | ) | USD | (601,681 | ) | 4,234 | ||||||||||||||||
$ | 208,549 |
See accompanying Notes to Financial Statements.
16 |
Portfolio of Investments
Touchstone Merger Arbitrage Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 78.1% | ||||||||
Financials — 25.4% | ||||||||
Alterra Capital Holdings Ltd. | 419,100 | $ | 13,201,650 | |||||
Artio Global Investors, Inc. | 2,234,994 | 6,079,184 | ||||||
Brooklyn Federal BanCorp, Inc. | 134,865 | — | ||||||
Citizens Republic Bancorp, Inc.* | 492,250 | 11,100,238 | ||||||
CreXus Investment Corp. REIT | 1,035,883 | 13,487,197 | ||||||
Duff & Phelps Corp. - Class A | 302,819 | 4,696,723 | ||||||
First California Financial Group, Inc.* | 571,441 | 4,868,677 | ||||||
First Financial Holdings, Inc. | 1,000 | 20,959 | ||||||
Firstcity Financial Corp.* | 464,521 | 4,561,596 | ||||||
Hudson City Bancorp, Inc. | 974,200 | 8,417,088 | ||||||
Knight Capital Group, Inc. - Class A* | 1,989,232 | 7,399,943 | ||||||
Mission West Properties, Inc. REIT | 451,600 | — | ||||||
Netspend Holdings, Inc.* | 874,800 | 13,900,572 | ||||||
NYSE Euronext | 318,900 | 12,322,296 | ||||||
PVF Capital Corp.* | 1,181,900 | 4,680,324 | ||||||
Roma Financial Corp. | 498,212 | 8,001,285 | ||||||
Spirit Realty Capital, Inc. REIT | 270,700 | 5,143,300 | ||||||
Virginia Commerce Bancorp, Inc.* | 200,192 | 2,812,698 | ||||||
120,693,730 | ||||||||
Consumer Discretionary — 12.8% | ||||||||
Ameristar Casinos, Inc. | 411,874 | 10,803,455 | ||||||
Arbitron, Inc. | 179,500 | 8,413,165 | ||||||
Hot Topic, Inc. | 360,800 | 5,007,904 | ||||||
K-Swiss, Inc. - Class A* | 1,320,500 | 6,259,170 | ||||||
OfficeMax, Inc. | 385,500 | 4,475,655 | ||||||
Outdoor Channel Holdings, Inc. | 214,429 | 1,912,707 | ||||||
Virgin Media, Inc. | 222,400 | 10,890,928 | ||||||
WMS Industries, Inc.* | 510,400 | 12,867,184 | ||||||
60,630,168 | ||||||||
Industrials — 9.0% | ||||||||
Asset Acceptance Capital Corp.* | 89,498 | 603,217 | ||||||
Cascade Corp. | 148,131 | 9,625,552 | ||||||
EDAC Technologies Corp.* | 227,300 | 4,214,142 | ||||||
EnergySolutions, Inc.* | 1,125,980 | 4,222,425 | ||||||
Gardner Denver, Inc. | 68,200 | 5,122,502 | ||||||
Sauer-Danfoss, Inc. | 242,758 | 14,184,350 | ||||||
Seacube Container Leasing Ltd. | 207,600 | 4,766,496 | ||||||
42,738,684 | ||||||||
Information Technology — 8.3% | ||||||||
Acme Packet, Inc.* | 404,291 | 11,813,383 | ||||||
Compuware Corp.* | 409,000 | 5,112,500 | ||||||
Cymer, Inc.* | 136,400 | 13,108,040 | ||||||
Dell, Inc. | 320,700 | 4,595,631 | ||||||
Pervasive Software, Inc.* | 513,022 | 4,704,412 | ||||||
39,333,966 | ||||||||
Consumer Staples — 5.8% | ||||||||
Grupo Modelo S.A. de C.V. | 1,499,100 | 13,551,864 | ||||||
HJ Heinz Co. | 196,700 | 14,215,509 | ||||||
27,767,373 | ||||||||
Health Care — 4.8% | ||||||||
American Medical Corp. | 21,600 | — | ||||||
Assisted Living Concepts, Inc. - Class A | 210,657 | 2,504,712 | ||||||
Coventry Health Care, Inc. | 359,400 | 16,902,582 | ||||||
Obagi Medical Products, Inc.* | 173,830 | 3,433,142 | ||||||
22,840,436 | ||||||||
Materials — 4.7% | ||||||||
Aurizon Mines Ltd.* | 1,655,218 | 7,299,511 | ||||||
Metals USA Holdings Corp. | 406,825 | 8,400,936 | ||||||
Orko Silver Corp.* | 3,073,600 | 6,823,392 | ||||||
22,523,839 | ||||||||
Telecommunication Services — 3.3% | ||||||||
Clearwire Corp. - Class A* | 2,963,800 | 9,602,712 | ||||||
Sprint Nextel Corp.* | 1,008,700 | 6,264,027 | ||||||
15,866,739 | ||||||||
Energy — 2.9% | ||||||||
Plains Exploration & Production Co.* | 288,500 | 13,695,095 | ||||||
Utilities — 1.1% | ||||||||
CH Energy Group, Inc. | 78,912 | 5,160,056 | ||||||
Total Common Stocks | $ | 371,250,086 | ||||||
Preferred Stocks— 2.5% | ||||||||
Financials — 2.5% | ||||||||
GMAC Capital Trust I, 8.13%(A) | 239,600 | 6,517,120 | ||||||
Goldman Sachs Group, Inc. (The), 6.13% | 196,800 | 5,282,112 | ||||||
Total Preferred Stocks | $ | 11,799,232 |
Principal | ||||||||
Amount | ||||||||
Asset-Backed Securities — 1.1% | ||||||||
$ | 2,462,500 | Domino's Pizza Master Issuer LLC, Ser | ||||||
2012-1A, Class A2, 144a, | ||||||||
5.216%, 1/25/42 | 2,763,511 | |||||||
2,263,000 | Sonic Capital LLC, Ser 2011-1A, Class | |||||||
A2, 144a, 5.438%, 5/20/41 | 2,538,468 | |||||||
Total Asset-Backed Securities | $ | 5,301,979 | ||||||
Corporate Bonds— 0.3% | ||||||||
Utilities — 0.3% | ||||||||
1,085,000 | AES Corp. (The), 8.000%, 10/15/17 | 1,276,231 |
Number | ||||||||
of | ||||||||
Rights | ||||||||
Rights—0.0% | ||||||||
Allos Therapeutics Contingent Value Rights, 0.00% | 4,131,971 | — | ||||||
XO Holdings, Inc. Class O, 0.00% | 40,500 | — | ||||||
Total Rights | $ | — |
17 |
Touchstone Merger Arbitrage Fund
March 31, 2013 (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Investment Funds— 19.6% | ||||||||
BlackRock Credit Allocation Income Trust IV | 338,417 | $ | 4,737,838 | |||||
Touchstone Institutional Money Market Fund^ | 88,329,688 | 88,329,688 | ||||||
Total Investment Funds | $ | 93,067,526 | ||||||
Total Long Positions | ||||||||
(Cost $467,632,513) | $ | 482,695,054 | ||||||
Securities Sold Short— (19.3%) | ||||||||
Common Stocks— (19.3%) | ||||||||
Financials — (11.7%) | ||||||||
FirstMerit Corp. | (674,278 | ) | (11,145,815 | ) | ||||
FNB Corp. | (402,450 | ) | (4,869,645 | ) | ||||
IntercontinentalExchange, Inc.* | (54,316 | ) | (8,857,310 | ) | ||||
Investors Bancorp, Inc. | (431,049 | ) | (8,095,100 | ) | ||||
M&T Bank Corp. | (81,862 | ) | (8,444,884 | ) | ||||
Markel Corp.* | (18,083 | ) | (9,104,790 | ) | ||||
PacWest Bancorp | (74,030 | ) | (2,155,013 | ) | ||||
SCBT Financial Corp. | (400 | ) | (20,161 | ) | ||||
United Bankshares, Inc. | (107,270 | ) | (2,854,455 | ) | ||||
(55,547,173 | ) | |||||||
Consumer Discretionary — (2.4%) | ||||||||
Liberty Global, Inc. - Class C* | (42,879 | ) | (2,942,786 | ) | ||||
Liberty Global, Inc. - Class A* | (57,424 | ) | (4,214,922 | ) | ||||
Office Depot, Inc.* | (1,036,995 | ) | (4,075,390 | ) | ||||
(11,233,098 | ) | |||||||
Information Technology — (2.2%) | ||||||||
ASML Holding N.V. | (156,890 | ) | (10,670,089 | ) | ||||
Materials — (1.5%) | ||||||||
Freeport-McMoRan Copper & Gold, Inc. | (188,384 | ) | (6,235,510 | ) | ||||
Hecla Mining Co. | (233,314 | ) | (921,590 | ) | ||||
(7,157,100 | ) | |||||||
Health Care — (1.5%) | ||||||||
Aetna, Inc. | (139,631 | ) | (7,137,937 | ) | ||||
$(91,745,397) | ||||||||
Total Securities Sold Short | ||||||||
(Proceeds $(82,832,118)) | $ | (91,745,397 | ) | |||||
Total Investment Securities —82.3% | ||||||||
(Cost $384,800,395) | $ | 390,949,657 | ||||||
Cash Collateral for Securities | ||||||||
Sold Short— 16.6% | 79,021,033 | |||||||
Other Assets in Excess of Liabilities — 1.1% | 4,997,638 | |||||||
Net Assets — 100.0% | $ | 474,968,328 |
(A) | Variable rate security - the rate reflected is the rate in effect as of March 31, 2013. |
(B) | Principal amount stated in U.S. dollars unless otherwise noted. |
* Non-income producing security.
^ Affiliated Fund. See Note 4 in Notes to Financial Statements.
Portfolio Abbreviations:
LLC - Limited Liability Company
LTD - Limited
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, 2013, these securities were valued at $5,301,979 or 1.1% 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.
18 |
Touchstone Merger Arbitrage Fund
March 31, 2013 (Unaudited) (Continued)
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stocks | $ | 371,250,086 | $ | — | $ | — | $ | 371,250,086 | ||||||||
Preferred Stocks | 11,799,232 | — | — | 11,799,232 | ||||||||||||
Asset-Backed Securities | — | 5,301,979 | — | 5,301,979 | ||||||||||||
Corporate Bond | — | 1,276,231 | — | 1,276,231 | ||||||||||||
Rights | — | — | — | — | ||||||||||||
Investment Funds | 93,067,526 | — | — | 93,067,526 | ||||||||||||
$ | 482,695,054 | |||||||||||||||
Liabilities: | ||||||||||||||||
Securities Sold Short | ||||||||||||||||
Common Stocks | (91,745,397 | ) | — | — | (91,745,397 | ) |
See accompanying Notes to Financial Statements.
19 |
Portfolio of Investments
Touchstone Mid Cap Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 95.3% | ||||||||
Consumer Discretionary — 23.7% | ||||||||
Cabela's, Inc.* | 62,964 | $ | 3,826,952 | |||||
CarMax, Inc.* | 106,310 | 4,433,127 | ||||||
Deckers Outdoor Corp.*† | 84,987 | 4,732,926 | ||||||
Hasbro, Inc.† | 69,502 | 3,053,918 | ||||||
Service Corp. International | 103,453 | 1,730,769 | ||||||
Staples, Inc.† | 168,233 | 2,259,369 | ||||||
Tempur-Pedic International, Inc.* | 91,957 | 4,563,826 | ||||||
Whirlpool Corp. | 31,683 | 3,753,168 | ||||||
28,354,055 | ||||||||
Financials — 18.7% | ||||||||
Alexander & Baldwin, Inc.* | 40,480 | 1,447,160 | ||||||
Alleghany Corp.* | 6,230 | 2,466,582 | ||||||
Eaton Vance Corp. | 61,470 | 2,571,290 | ||||||
Hatteras Financial Corp. REIT | 105,015 | 2,880,561 | ||||||
M&T Bank Corp.† | 47,560 | 4,906,290 | ||||||
MBIA, Inc.*† | 386,360 | 3,967,917 | ||||||
White Mountains Insurance Group Ltd. | 7,450 | 4,225,044 | ||||||
22,464,844 | ||||||||
Consumer Staples — 15.4% | ||||||||
Brown-Forman Corp. - Class B | 48,701 | 3,477,251 | ||||||
Energizer Holdings, Inc. | 50,410 | 5,027,389 | ||||||
Hershey Co. (The) | 43,980 | 3,849,569 | ||||||
Lorillard, Inc. | 71,740 | 2,894,709 | ||||||
Nu Skin Enterprises, Inc. Class A† | 27,250 | 1,204,450 | ||||||
Pricesmart, Inc. | 25,180 | 1,959,759 | ||||||
18,413,127 | ||||||||
Materials — 14.1% | ||||||||
Albemarle Corp. | 72,960 | 4,561,459 | ||||||
MeadWestvaco Corp. | 145,500 | 5,281,650 | ||||||
NewMarket Corp. | 16,670 | 4,340,201 | ||||||
Vulcan Materials Co. | 52,020 | 2,689,434 | ||||||
16,872,744 | ||||||||
Industrials — 7.1% | ||||||||
Cintas Corp. | 113,840 | 5,023,759 | ||||||
Matson, Inc. | 45,820 | 1,127,172 | ||||||
Old Dominion Freight Line, Inc.* | 62,921 | 2,403,582 | ||||||
8,554,513 | ||||||||
Information Technology — 7.0% | ||||||||
Amphenol Corp. - Class A | 58,040 | 4,332,686 | ||||||
Paychex, Inc. | 116,670 | 4,091,617 | ||||||
8,424,303 | ||||||||
Energy — 5.4% | ||||||||
Atwood Oceanics, Inc.* | 100,090 | 5,258,729 | ||||||
Kinder Morgan Management LLC*† | 14,381 | 1,263,447 | ||||||
6,522,176 | ||||||||
Health Care — 3.9% | ||||||||
Tenet Healthcare Corp.* | 98,162 | 4,670,549 | ||||||
Total Common Stocks | $ | 114,276,311 | ||||||
Investment Funds— 31.1% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 13,825,499 | $ | 13,825,499 | |||||
Touchstone Institutional Money Market Fund^ | 23,471,515 | 23,471,515 | ||||||
Total Investment Funds | $ | 37,297,014 | ||||||
Total Investment Securities —126.4% | ||||||||
(Cost $131,686,560) | $ | 151,573,325 | ||||||
Liabilities in Excess of Other Assets — (26.4%) | (31,695,582 | ) | ||||||
Net Assets — 100.0% | $ | 119,877,743 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $13,766,150. |
Portfolio Abbreviations:
LLC - Limited Liability 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 | $ | 114,276,311 | $ | — | $ | — | $ | 114,276,311 | ||||||||
Investment Funds | 37,297,014 | — | — | 37,297,014 | ||||||||||||
$ | 151,573,325 |
See accompanying Notes to Financial Statements.
20 |
Portfolio of Investments
Touchstone Mid Cap Value Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 91.9% | ||||||||
Financials — 19.8% | ||||||||
Allstate Corp. (The) | 43,288 | $ | 2,124,142 | |||||
Ameriprise Financial, Inc. | 24,233 | 1,784,760 | ||||||
Comerica, Inc. | 26,199 | 941,854 | ||||||
Digital Realty Trust, Inc., REIT | 31,070 | 2,078,894 | ||||||
Endurance Specialty Holdings Ltd. | 33,691 | 1,610,767 | ||||||
Fifth Third Bancorp | 134,836 | 2,199,175 | ||||||
Host Hotels & Resorts, Inc., REIT | 99,341 | 1,737,474 | ||||||
Liberty Property Trust, REIT | 46,620 | 1,853,145 | ||||||
PartnerRe Ltd. | 19,673 | 1,831,753 | ||||||
Reinsurance Group of America, Inc. | 27,540 | 1,643,312 | ||||||
SunTrust Banks, Inc. | 66,658 | 1,920,417 | ||||||
TCF Financial Corp. | 93,968 | 1,405,761 | ||||||
Unum Group | 84,779 | 2,395,007 | ||||||
Willis Group Holdings PLC | 44,691 | 1,764,848 | ||||||
Zions Bancorporation | 72,124 | 1,802,379 | ||||||
27,093,688 | ||||||||
Information Technology — 11.4% | ||||||||
Adobe Systems, Inc.* | 29,701 | 1,292,291 | ||||||
Diebold, Inc. | 66,591 | 2,019,039 | ||||||
Fidelity National Information Services, Inc. | 53,863 | 2,134,052 | ||||||
Juniper Networks, Inc.* | 78,994 | 1,464,549 | ||||||
Microchip Technology, Inc. | 48,021 | 1,765,252 | ||||||
Molex, Inc.† | 42,465 | 1,243,375 | ||||||
Symantec Corp.* | 83,453 | 2,059,620 | ||||||
Synopsys, Inc.* | 73,599 | 2,640,732 | ||||||
Vishay Intertechnology, Inc.* | 70,550 | 960,186 | ||||||
15,579,096 | ||||||||
Materials — 10.6% | ||||||||
Air Products & Chemicals, Inc. | 18,250 | 1,589,939 | ||||||
Allegheny Technologies, Inc. | 65,336 | 2,071,805 | ||||||
Compass Minerals International, Inc. | 23,321 | 1,840,027 | ||||||
Greif, Inc. - Class A | 30,094 | 1,613,640 | ||||||
Nucor Corp. | 32,108 | 1,481,784 | ||||||
Owens-Illinois, Inc.* | 49,316 | 1,314,271 | ||||||
Rockwood Holdings, Inc. | 25,634 | 1,677,489 | ||||||
Scotts Miracle-Gro Co. (The) - Class A | 32,470 | 1,404,003 | ||||||
Silgan Holdings, Inc.† | 30,289 | 1,431,155 | ||||||
14,424,113 | ||||||||
Industrials — 10.0% | ||||||||
Cintas Corp. | 35,456 | 1,564,673 | ||||||
Dover Corp. | 23,416 | 1,706,558 | ||||||
Flowserve Corp. | 8,460 | 1,418,827 | ||||||
Fluor Corp. | 27,688 | 1,836,545 | ||||||
Parker Hannifin Corp. | 17,464 | 1,599,353 | ||||||
Stanley Black & Decker, Inc. | 24,703 | 2,000,202 | ||||||
Towers Watson & Co. - Class A | 26,270 | 1,821,036 | ||||||
Xylem, Inc. | 59,896 | 1,650,734 | ||||||
13,597,928 | ||||||||
Consumer Discretionary — 9.6% | ||||||||
Cabela's, Inc.* | 25,363 | 1,541,563 | ||||||
Darden Restaurants, Inc. | 26,498 | 1,369,417 | ||||||
Dollar General Corp.* | 31,927 | 1,614,868 | ||||||
Harley-Davidson, Inc. | 26,336 | 1,403,709 | ||||||
Hasbro, Inc.† | 37,727 | 1,657,724 | ||||||
Interpublic Group of Cos, Inc. (The) | 85,473 | 1,113,713 | ||||||
Newell Rubbermaid, Inc. | 70,581 | 1,842,164 | ||||||
PetSmart, Inc. | 20,095 | 1,247,900 | ||||||
Royal Caribbean Cruises Ltd. | 37,781 | 1,255,085 | ||||||
13,046,143 | ||||||||
Utilities — 8.1% | ||||||||
AGL Resources, Inc. | 50,347 | 2,112,057 | ||||||
Edison International | 24,176 | 1,216,536 | ||||||
Great Plains Energy, Inc. | 100,116 | 2,321,690 | ||||||
Portland General Electric Co. | 33,213 | 1,007,350 | ||||||
SCANA Corp. | 25,660 | 1,312,766 | ||||||
TECO Energy, Inc. | 81,317 | 1,449,069 | ||||||
Xcel Energy, Inc. | 53,909 | 1,601,097 | ||||||
11,020,565 | ||||||||
Consumer Staples — 8.0% | ||||||||
Coca-Cola Enterprises, Inc. | 34,433 | 1,271,266 | ||||||
Darling International, Inc.* | 70,944 | 1,274,154 | ||||||
JM Smucker Co. (The) | 14,150 | 1,403,113 | ||||||
Kroger Co. (The) | 66,015 | 2,187,737 | ||||||
Molson Coors Brewing Co. - Class B | 34,746 | 1,700,122 | ||||||
Sysco Corp. | 44,691 | 1,571,782 | ||||||
Tyson Foods, Inc. - Class A | 59,202 | 1,469,394 | ||||||
10,877,568 | ||||||||
Energy — 7.6% | ||||||||
EQT Corp. | 23,913 | 1,620,106 | ||||||
McDermott International, Inc. (Panama)* | 93,380 | 1,026,246 | ||||||
Nabors Industries Ltd. | 59,862 | 970,962 | ||||||
Newfield Exploration Co.* | 63,496 | 1,423,580 | ||||||
Pioneer Natural Resources Co. | 15,847 | 1,968,990 | ||||||
Range Resources Corp. | 16,072 | 1,302,475 | ||||||
Spectra Energy Corp. | 68,669 | 2,111,572 | ||||||
10,423,931 | ||||||||
Health Care — 6.8% | ||||||||
AmerisourceBergen Corp. | 25,511 | 1,312,541 | ||||||
CareFusion Corp.* | 59,548 | 2,083,585 | ||||||
Charles River Laboratories International, Inc.* | 30,240 | 1,338,725 | ||||||
MEDNAX, Inc.* | 19,525 | 1,750,026 | ||||||
Patterson Cos., Inc. | 29,997 | 1,141,086 | ||||||
Quest Diagnostics, Inc. | 29,576 | 1,669,565 | ||||||
9,295,528 | ||||||||
Total Common Stocks | $ | 125,358,560 | ||||||
Exchange Traded Fund — 1.9% | ||||||||
iShares Russell Midcap Value Index Fund | 46,418 | 2,645,825 | ||||||
Investment Funds— 9.1% | ||||||||
Invesco Government & Agency | ||||||||
Portfolio, Institutional Class** | 1,708,403 | 1,708,403 |
21 |
Touchstone Mid Cap Value Fund
March 31, 2013 (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Investment Funds — 9.1% (Continued) | ||||||||
Touchstone Institutional Money Market Fund^ | 10,712,046 | $ | 10,712,046 | |||||
Total Investment Funds | $ | 12,420,449 | ||||||
Total Investment Securities —102.9% | ||||||||
(Cost $122,280,435) | $ | 140,424,834 | ||||||
Liabilities in Excess of Other Assets — (2.9)% | (3,967,996 | ) | ||||||
Net Assets — 100.0% | $ | 136,456,838 |
Portfolio Abbreviations:
PLC - Public Limited Company
REIT - Real Estate Investment Trust
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $1,683,640. |
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 | $ | 125,358,560 | $ | — | $ | — | $ | 125,358,560 | ||||||||
Exchanged Traded Fund | 2,645,825 | — | — | 2,645,825 | ||||||||||||
Investment Funds | 12,420,449 | — | — | 12,420,449 | ||||||||||||
$ | 140,424,834 |
See accompanying Notes to Financial Statements.
22 |
Portfolio of Investments
Touchstone Premium Yield Equity Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 96.4% | ||||||||
Energy — 24.8% | ||||||||
Kinder Morgan Management LLC* | 3 | $ | 247 | |||||
Kinder Morgan, Inc. Delaware | 343,672 | 13,293,234 | ||||||
LinnCo LLC | 79,166 | 3,091,432 | ||||||
Pembina Pipeline Corp. (Canada) | 61,234 | 1,934,994 | ||||||
Seadrill Ltd. | 125,966 | 4,687,195 | ||||||
Spectra Energy Corp. | 142,587 | 4,384,550 | ||||||
Statoil ASA, ADR | 148,710 | 3,661,240 | ||||||
Total SA, ADR | 62,983 | 3,021,924 | ||||||
Williams Cos., Inc. (The) | 195,948 | 7,340,212 | ||||||
41,415,028 | ||||||||
Utilities — 15.0% | ||||||||
American Water Works Co., Inc. | 154,834 | 6,416,322 | ||||||
National Grid PLC, ADR | 60,480 | 3,508,445 | ||||||
NiSource, Inc. | 277,201 | 8,133,077 | ||||||
ONEOK, Inc. | 148,710 | 7,089,006 | ||||||
25,146,850 | ||||||||
Health Care — 15.0% | ||||||||
Baxter International, Inc. | 51,174 | 3,717,279 | ||||||
Eli Lilly & Co. | 64,295 | 3,651,313 | ||||||
GlaxoSmithKline PLC, ADR | 94,037 | 4,411,276 | ||||||
Johnson & Johnson | 61,234 | 4,992,408 | ||||||
Merck & Co., Inc. | 111,970 | 4,952,433 | ||||||
Pfizer, Inc. | 117,219 | 3,382,940 | ||||||
25,107,649 | ||||||||
Financials — 14.4% | ||||||||
Bank of Montreal (Canada) | 28,430 | 1,789,668 | ||||||
Cincinnati Financial Corp. | 82,228 | 3,880,339 | ||||||
CME Group, Inc. IL | 50,299 | 3,087,856 | ||||||
Digital Realty Trust, Inc., REIT | 45,488 | 3,043,602 | ||||||
HCP, Inc., REIT | 69,107 | 3,445,675 | ||||||
Hospitality Properties Trust, REIT | 140,400 | 3,852,576 | ||||||
Omega Healthcare Investors, Inc., REIT | 63,858 | 1,938,729 | ||||||
Senior Housing Properties Trust, REIT | 62,546 | 1,678,109 | ||||||
Valley National Bancorp | 130,031 | 1,331,517 | ||||||
24,048,071 | ||||||||
Information Technology — 8.2% | ||||||||
CA, Inc. | 112,408 | 2,829,309 | ||||||
Intel Corp. | 181,514 | 3,966,081 | ||||||
Maxim Integrated Products, Inc. | 100,161 | 3,270,257 | ||||||
Microchip Technology, Inc. | 100,598 | 3,697,982 | ||||||
13,763,629 | ||||||||
Telecommunication Services — 6.9% | ||||||||
AT&T, Inc. | 103,660 | 3,803,285 | ||||||
BCE, Inc. (Canada) | 37,615 | 1,756,244 | ||||||
Vodafone Group PLC, ADR | 209,069 | 5,939,650 | ||||||
11,499,179 | ||||||||
Industrials — 5.9% | ||||||||
General Electric Co. | 322,352 | 7,452,778 | ||||||
RR Donnelley & Sons Co. | 198,572 | 2,392,793 | ||||||
9,845,571 | ||||||||
Materials — 2.6% | ||||||||
International Paper Co. | 92,288 | 4,298,775 | ||||||
Consumer Discretionary — 1.9% | ||||||||
Staples, Inc. | 241,873 | 3,248,354 | ||||||
Consumer Staples — 1.7% | ||||||||
HJ Heinz Co. | 40,396 | 2,919,420 | ||||||
Total Common Stocks | $ | 161,292,526 | ||||||
Investment Fund — 15.8% | ||||||||
Touchstone Institutional Money Market Fund^ | 26,454,136 | 26,454,136 | ||||||
Total Investment Securities —112.2% | ||||||||
(Cost $165,375,404) | $ | 187,746,662 | ||||||
Liabilities in Excess of Other Assets — (12.2)% | (20,455,741 | ) | ||||||
Net Assets — 100.0% | $ | 167,290,921 |
Portfolio Abbreviations:
ADR - American Depositary Receipt
LLC - Limited Liability Company
PLC - Public Limited Company
REIT - Real Estate Investment Trust
* Non-income producing security.
^ Affiliated Fund. See Note 4 in Notes to Financial Statements.
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 | $ | 161,292,526 | $ | — | $ | — | $ | 161,292,526 | ||||||||
Investment Fund | 26,454,136 | — | — | 26,454,136 | ||||||||||||
$ | 187,746,662 |
See accompanying Notes to Financial Statements.
23 |
Portfolio of Investments
Touchstone Sands Capital Select Growth Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 97.0% | ||||||||
Information Technology — 39.1% | ||||||||
Apple, Inc. | 170,000 | $ | 75,247,100 | |||||
ARM Holdings PLC ADR | 2,911,000 | 123,339,070 | ||||||
ASML Holding NV† | 2,132,000 | 144,997,320 | ||||||
F5 Networks, Inc.* | 1,130,000 | 100,660,400 | ||||||
Facebook, Inc. - Class A* | 4,856,000 | 124,216,480 | ||||||
Google, Inc. - Class A* | 447,000 | 354,931,410 | ||||||
QUALCOMM, Inc. | 1,279,000 | 85,629,050 | ||||||
Salesforce.com, Inc.* | 1,690,000 | 302,222,700 | ||||||
Splunk, Inc.* | 554,944 | 22,214,408 | ||||||
Visa, Inc. - Class A | 2,093,000 | 355,475,120 | ||||||
1,688,933,058 | ||||||||
Consumer Discretionary — 24.1% | ||||||||
Amazon.com, Inc.* | 1,241,000 | 330,714,090 | ||||||
Chipotle Mexican Grill, Inc.* | 482,000 | 157,069,340 | ||||||
Las Vegas Sands Corp. | 2,136,000 | 120,363,600 | ||||||
NIKE, Inc. - Class B | 2,285,000 | 134,837,850 | ||||||
priceline.com, Inc.* | 250,000 | 171,982,500 | ||||||
Starbucks Corp. | 1,896,000 | 107,996,160 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. | 201,038 | 16,318,255 | ||||||
1,039,281,795 | ||||||||
Health Care — 19.7% | ||||||||
Alexion Pharmaceuticals, Inc.* | 1,431,000 | 131,852,340 | ||||||
Allergan, Inc. | 1,864,000 | 208,078,320 | ||||||
athenahealth, Inc.*† | 574,000 | 55,700,960 | ||||||
Biogen Idec, Inc.* | 504,000 | 97,226,640 | ||||||
BioMarin Pharmaceutical, Inc.* | 1,340,000 | 83,428,400 | ||||||
Cerner Corp.* | 1,461,000 | 138,429,750 | ||||||
Intuitive Surgical, Inc.* | 171,000 | 83,993,490 | ||||||
Regeneron Pharmaceuticals, Inc.* | 298,000 | 52,567,200 | ||||||
851,277,100 | ||||||||
Energy — 11.3% | ||||||||
FMC Technologies, Inc.* | 2,047,000 | 111,336,330 | ||||||
National Oilwell Varco, Inc. | 1,418,000 | 100,323,500 | ||||||
Schlumberger Ltd. (CW) | 2,128,000 | 159,365,920 | ||||||
Southwestern Energy Co.* | 3,097,000 | 115,394,220 | ||||||
486,419,970 | ||||||||
Materials — 2.8% | ||||||||
Praxair, Inc. | 1,070,000 | 119,347,800 | ||||||
Total Common Stocks | $ | 4,185,259,723 | ||||||
Investment Funds— 6.5% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 198,472,230 | $ | 198,472,230 | |||||
Touchstone Institutional Money Market Fund^ | 83,820,707 | 83,820,707 | ||||||
Total Investment Funds | $ | 282,292,937 | ||||||
Total Investment Securities —103.5% | ||||||||
(Cost $3,502,814,529) | $ | 4,467,552,660 | ||||||
Liabilities in Excess of Other Assets — (3.5%) | (151,253,227 | ) | ||||||
Net Assets — 100.0% | $ | 4,316,299,433 |
* Non-income producing security.
** Represents collateral for securities loaned.
^ Affiliated Fund. See Note 4 in Notes to Financial Statements.
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $197,922,740. |
Portfolio Abbreviation:
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 | $ | 4,185,259,723 | $ | — | $ | — | $ | 4,185,259,723 | ||||||||
Investment Funds | 282,292,937 | — | — | 282,292,937 | ||||||||||||
$ | 4,467,552,660 |
See accompanying Notes to Financial Statements.
24 |
Portfolio of Investments
Touchstone Short Duration Fixed Income Fund – March 31, 2013 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 30.3% | ||||||||
$ | 310,000 | American Express Credit Account | ||||||
Master Trust, Ser 2010-1, Class A, | ||||||||
0.453%, 11/16/15(A) | $ | 310,030 | ||||||
153,910 | AmeriCredit Automobile Receivables | |||||||
�� | Trust, Ser 2009-1, Class B, | |||||||
9.790%, 4/15/14 | 155,149 | |||||||
365,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2010-2, Class C, | ||||||||
4.520%, 10/8/15 | 374,499 | |||||||
120,674 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2010-3, Class A3, | ||||||||
1.140%, 4/8/15 | 120,830 | |||||||
445,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2011-3, Class B, | ||||||||
2.280%, 6/8/16 | 453,552 | |||||||
285,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-1, Class B, | ||||||||
1.730%, 2/8/17 | 289,306 | |||||||
220,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-2, Class B, | ||||||||
1.780%, 3/8/17 | 223,573 | |||||||
700,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-3, Class A3, | ||||||||
0.960%, 1/9/17 | 703,935 | |||||||
580,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-4, Class A3, | ||||||||
0.670%, 6/8/17 | 580,764 | |||||||
585,000 | Capital Auto Receivables Asset Trust, | |||||||
Ser 2013-1, Class A3, | ||||||||
0.790%, 6/20/17 | 585,801 | |||||||
665,000 | Capital One Multi-Asset Execution | |||||||
Trust, Ser 2007-A7, Class A7, | ||||||||
5.750%, 7/15/20 | 798,596 | |||||||
225,000 | CarMax Auto Owner Trust, Ser 2012-1, | |||||||
Class A3, 0.890%, 9/15/16 | 226,177 | |||||||
915,000 | CarMax Auto Owner Trust, Ser 2012-3, | |||||||
Class A4, 0.790%, 4/16/18 | 915,599 | |||||||
103,050 | CNH Equipment Trust, Ser 2010-A, | |||||||
Class A4, 2.490%, 1/15/16 | 103,900 | |||||||
425,000 | CNH Equipment Trust, Ser 2011-C, | |||||||
Class A3, 1.190%, 12/15/16 | 427,982 | |||||||
127,448 | College & University Facility Loan | |||||||
Trust, Ser 2 Class D, 4.000%, 6/1/18 | 131,756 | |||||||
522,500 | Cronos Containers Program Ltd., Ser | |||||||
2012-2A, Class A, 144a, | ||||||||
3.810%, 9/18/27 | 540,859 | |||||||
507,275 | Domino's Pizza Master Issuer LLC, Ser | |||||||
2012-1A, Class A2, 144a, | ||||||||
5.216%, 1/25/42 | 569,283 | |||||||
131,502 | DT Auto Owner Trust, Ser 2012-2A, | |||||||
Class A, 144a, 0.910%, 11/16/15 | 131,568 | |||||||
465,000 | Ford Credit Auto Lease Trust, Ser | |||||||
2012-A, Class A3, 0.850%, 1/15/15 | 466,218 | |||||||
43,320 | Ford Credit Auto Owner Trust, Ser | |||||||
2009-B, Class A4, 4.500%, 7/15/14 | 43,523 | |||||||
545,000 | Ford Credit Floorplan Master Owner | |||||||
Trust, Ser 2013-1, Class A1, | ||||||||
0.850%, 1/15/18 | 544,077 | |||||||
430,000 | GE Capital Credit Card Master Note | |||||||
Trust, Ser 2012-1, Class A, | ||||||||
1.030%, 1/15/18 | 433,946 | |||||||
900,000 | GE Equipment Midticket LLC, Ser | |||||||
2012-1, Class A4, 0.780%, 9/22/20 | 901,731 | |||||||
289,406 | GE Equipment Small Ticket LLC, Ser | |||||||
2011-1A, Class A3, 144a, | ||||||||
1.450%, 1/21/18 | 290,514 | |||||||
275,000 | GE Equipment Small Ticket LLC, Ser | |||||||
2011-2A, Class A3, 144a, | ||||||||
1.370%, 6/22/15 | 276,151 | |||||||
265,000 | GE Equipment Transportation LLC, Ser | |||||||
2011-1, Class A4, 1.330%, 5/20/19 | 266,377 | |||||||
630,000 | GE Equipment Transportation LLC, Ser | |||||||
2012-1, Class A4, 1.230%, 1/22/20 | 636,307 | |||||||
860,000 | Golden Credit Card Trust, Ser 2012-2A, | |||||||
Class A1, 144a, 1.770%, 1/15/19 | 883,158 | |||||||
69,860 | Great America Leasing Receivables, | |||||||
Ser 2009-1, Class A4, 144a, | ||||||||
3.190%, 12/15/13 | 69,931 | |||||||
690,704 | Great America Leasing Receivables, | |||||||
Ser 2011-1, Class A3, 144a, | ||||||||
1.690%, 2/15/14 | 692,261 | |||||||
525,000 | Great America Leasing Receivables, | |||||||
Ser 2013-1, Class A3, 144a, | ||||||||
0.780%, 6/15/16 | 525,280 | |||||||
275,000 | Harley-Davidson Motorcycle Trust, Ser | |||||||
2010-1, Class A4, 1.530%, 9/15/15 | 276,410 | |||||||
350,282 | Harley-Davidson Motorcycle Trust, Ser | |||||||
2011-1, Class A3, 0.960%, 5/16/16 | 351,338 | |||||||
430,000 | Harley-Davidson Motorcycle Trust, Ser | |||||||
2011-1, Class A4, 1.310%, 3/15/17 | 435,060 | |||||||
355,935 | Mid-State Trust, Ser 2004-1, Class A, | |||||||
6.005%, 8/15/37 | 385,786 | |||||||
720,941 | MMAF Equipment Finance LLC, Ser | |||||||
2009-AA, Class A4, 144a, | ||||||||
3.510%, 1/15/30 | 742,189 | |||||||
395,000 | MMAF Equipment Finance LLC, Ser | |||||||
2011-AA, Class A3, 144a, | ||||||||
1.270%, 9/15/15 | 396,315 | |||||||
400,000 | MMAF Equipment Finance LLC, Ser | |||||||
2011-AA, Class A4, 144a, | ||||||||
2.100%, 7/15/17 | 409,516 | |||||||
450,000 | MMAF Equipment Finance LLC, Ser | |||||||
2012-AA, Class A4, 144a, | ||||||||
1.350%, 10/10/18 | 453,593 | |||||||
425,000 | Nissan Auto Lease Trust, Ser 2012-A, | |||||||
Class A3, 0.980%, 5/15/15 | 427,304 | |||||||
63,144 | Santander Consumer Acquired | |||||||
Receivables Trust, Ser 2011-WO, | ||||||||
Class A3, 144a, 1.400%, 10/15/14 | 63,185 | |||||||
280,737 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2010-1, Class A3, | ||||||||
1.840%, 11/17/14 | 282,308 |
25 |
Touchstone Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 30.3% (Continued) | ||||||||
$ | 223,920 | Santander Drive Auto Receivables | ||||||
Trust, Ser 2011-1, Class A3, | ||||||||
1.280%, 1/15/15 | $ | 224,344 | ||||||
461,955 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2011-2, Class A3, | ||||||||
1.290%, 2/16/15 | 462,866 | |||||||
315,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2011-2, Class B, | ||||||||
2.660%, 1/15/16 | 320,262 | |||||||
720,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-1, Class A3, | ||||||||
1.490%, 10/15/15 | 725,702 | |||||||
635,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-2, Class A3, | ||||||||
1.220%, 12/15/15 | 638,764 | |||||||
390,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-2, Class B, | ||||||||
2.090%, 8/15/16 | 396,072 | |||||||
750,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-3, Class A3, | ||||||||
1.080%, 4/15/16 | 752,828 | |||||||
141,025 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20E, Class 1, 4.640%, 5/1/23 | 154,938 | |||||||
143,366 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20B, Class 1, 4.720%, 2/1/24 | 156,922 | |||||||
161,798 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20G, Class 1, 4.750%, 7/1/25 | 179,699 | |||||||
107,556 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-10E, Class 1, 5.250%, 9/1/17 | 114,182 | |||||||
710,582 | Sonic Capital LLC, Ser 2011-1A, Class | |||||||
A2, 144a, 5.438%, 5/20/41 | 797,079 | |||||||
5,507 | Tax Liens Securitization Trust, Ser | |||||||
2010-1A, Class 1A2, 144a, | ||||||||
2.000%, 4/15/18 | 5,515 | |||||||
1,085 | Tax Liens Securitization Trust, Ser | |||||||
2010-1A, Class 2A2, 144a, | ||||||||
2.000%, 4/15/18 | 1,087 | |||||||
48,837 | United States Small Business Adminis- | |||||||
tration, Ser 2005-P10A, Class 1, | ||||||||
4.638%, 2/10/15 | 51,423 | |||||||
72,683 | United States Small Business Adminis- | |||||||
tration, Ser 2006-P10A, Class 1, | ||||||||
5.408%, 2/10/16 | 77,033 | |||||||
145,257 | United States Small Business Adminis- | |||||||
tration, Ser 2007-P10B, Class 1, | ||||||||
5.788%, 8/10/17 | 157,364 | |||||||
215,000 | Volkswagen Auto Lease Trust, Ser | |||||||
2011-A, Class A3, 1.200%, 10/20/14 | 215,764 | |||||||
350,000 | Volvo Financial Equipment LLC, Ser | |||||||
2012-1A, Class A4, 144a, | ||||||||
1.090%, 8/15/17 | 352,210 | |||||||
123,460 | Westlake Automobile Receivables | |||||||
Trust, Ser 2011-1A, Class A3, 144a, | ||||||||
1.490%, 6/16/14 | 123,657 | |||||||
500,000 | Westlake Automobile Receivables | |||||||
Trust, Ser 2012-1A, Class A2, 144a, | ||||||||
1.030%, 3/15/16 | 501,009 | |||||||
370,000 | World Financial Network Credit Card | |||||||
Master Trust, Ser 2009-D, Class A, | ||||||||
4.660%, 5/15/17 | 374,556 | |||||||
1,070,000 | World Financial Network Credit Card | |||||||
Master Trust, Ser 2010-A, Class A, | ||||||||
3.960%, 4/15/19 | 1,145,036 | |||||||
735,000 | World Omni Auto Receivables Trust, | |||||||
Ser 2012-B, Class A4, | ||||||||
0.810%, 1/15/19 | 736,718 | |||||||
Total Asset-Backed Securities | $ | 26,560,667 | ||||||
Corporate Bonds— 27.4% | ||||||||
Financials — 16.6% | ||||||||
326,181 | Ahold Lease Series 2001-A-1 Pass | |||||||
Through Trust, 7.820%, 1/2/20(B) | 371,847 | |||||||
625,000 | American Express Co., | |||||||
6.800%, 9/1/66(A) | 673,438 | |||||||
250,000 | American International Group, Inc., | |||||||
3.000%, 3/20/15 | 259,371 | |||||||
315,000 | American International Group, Inc., | |||||||
4.250%, 5/15/13 | 316,355 | |||||||
134,000 | Bank of America Corp., | |||||||
7.800%, 9/15/16 | 157,995 | |||||||
500,000 | Bank of America NA, 5.300%, 3/15/17 | 560,240 | ||||||
500,000 | Barclays Bank PLC, 5.200%, 7/10/14 | 527,095 | ||||||
500,000 | Citigroup, Inc., 5.000%, 9/15/14 | 525,014 | ||||||
195,000 | CME Group, Inc., 5.750%, 2/15/14 | 203,445 | ||||||
370,000 | Farmers Insurance Exchange, 144a, | |||||||
6.000%, 8/1/14 | 391,062 | |||||||
900,000 | FDIC Structured Sale Guaranteed | |||||||
Notes, 144a, 0.000%, 10/25/13# | 898,828 | |||||||
525,000 | Hartford Financial Services Group, Inc., | |||||||
5.500%, 10/15/16 | 594,018 | |||||||
500,000 | HSBC Finance Corp., 5.500%, 1/19/16 | 556,502 | ||||||
625,000 | JPMorgan Chase & Co., 4.750%, 3/1/15 | 671,155 | ||||||
555,000 | KeyBank NA/Cleveland OH, | |||||||
7.413%, 5/6/15 | 625,787 | |||||||
600,000 | Mellon Funding Corp., | |||||||
5.000%, 12/1/14 | 641,122 | |||||||
525,000 | Metropolitan Life Insurance Co., 144a, | |||||||
7.700%, 11/1/15 | 604,049 | |||||||
250,000 | Morgan Stanley, 4.750%, 4/1/14 | 258,459 | ||||||
215,000 | National Australia Bank Ltd., 144a, | |||||||
1.700%, 12/10/13 | 216,947 | |||||||
300,000 | Provident Bank of Maryland, | |||||||
9.500%, 5/1/18 | 308,843 | |||||||
427,500 | Prudential Covered Trust 2012-1, 144a, | |||||||
2.997%, 9/30/15 | 445,723 |
26 |
Touchstone Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 27.4% (Continued) | ||||||||
Financials — (Continued) | ||||||||
$ | 550,000 | Simon Property Group LP, | ||||||
6.750%, 5/15/14 | $ | 578,526 | ||||||
775,000 | SunTrust Bank, 0.584%, 4/1/15(A) | 766,594 | ||||||
650,000 | TIAA Global Markets, Inc., 144a, | |||||||
4.950%, 7/15/13 | 658,257 | |||||||
500,000 | Torchmark Corp., 7.375%, 8/1/13 | 510,418 | ||||||
500,000 | UBS AG, 3.875%, 1/15/15 | 527,842 | ||||||
450,000 | Ventas Realty LP/Ventas Capital Corp., | |||||||
3.125%, 11/30/15 | 475,678 | |||||||
500,000 | Vornado Realty LP, 4.250%, 4/1/15 | 528,479 | ||||||
330,000 | Wachovia Corp., 5.250%, 8/1/14 | 349,145 | ||||||
291,400 | WHC-IRS Trust, 6.980%, 5/15/15 | 310,078 | ||||||
14,512,312 | ||||||||
Industrials — 4.6% | ||||||||
505,000 | Amphenol Corp., 4.750%, 11/15/14 | 534,987 | ||||||
227,000 | Caterpillar, Inc., 7.000%, 12/15/13 | 237,550 | ||||||
440,726 | CSX Transportation, Inc., | |||||||
8.375%, 10/15/14 | 486,356 | |||||||
49,336 | Federal Express Corp. 1995 Pass | |||||||
Through Trust, 7.110%, 1/2/14 | 51,680 | |||||||
177,579 | Federal Express Corp. 2012 Pass | |||||||
Through Trust, 144a, | ||||||||
2.625%, 1/15/18 | 179,507 | |||||||
255,447 | GATX Corp. 2008-2 Pass Through Trust, | |||||||
9.000%, 11/15/13 | 267,687 | |||||||
450,000 | Joy Global, Inc., 6.000%, 11/15/16 | 518,372 | ||||||
78,758 | Petrodrill Five Ltd., 4.390%, 4/15/16 | 82,086 | ||||||
87,511 | Petrodrill Four Ltd., 4.240%, 1/15/16 | 89,942 | ||||||
435,000 | Roper Industries, Inc., 6.625%, 8/15/13 | 444,238 | ||||||
400,000 | Ryder System, Inc. MTN, | |||||||
7.200%, 9/1/15 | 454,338 | |||||||
575,869 | Union Pacific Railroad Co. 1998 Pass | |||||||
Through Trust, 6.330%, 1/2/20 | 653,425 | |||||||
4,000,168 | ||||||||
Materials — 1.4% | ||||||||
500,000 | Potash Corp. of Saskatchewan, Inc., | |||||||
5.250%, 5/15/14 | 524,889 | |||||||
375,000 | Rio Tinto Finance USA Ltd., | |||||||
8.950%, 5/1/14 | 407,960 | |||||||
271,000 | Westvaco Corp., 7.650%, 3/15/27 | 312,862 | ||||||
1,245,711 | ||||||||
Telecommunication Services — 1.2% | ||||||||
119,445 | BellSouth Telecommunications, Inc., | |||||||
6.300%, 12/15/15 | 124,962 | |||||||
250,000 | Comcast Cable Holdings LLC, | |||||||
7.875%, 8/1/13 | 256,057 | |||||||
650,000 | SBA Tower Trust, 144a, | |||||||
4.254%, 4/15/15 | 687,788 | |||||||
1,068,807 | ||||||||
Energy — 1.1% | ||||||||
300,300 | Maritimes & Northeast Pipeline LLC, | |||||||
144a, 7.500%, 5/31/14 | 313,099 | |||||||
350,000 | Noble Corp., 5.875%, 6/1/13 | 353,152 | ||||||
315,000 | Noble Energy, Inc., 5.250%, 4/15/14 | 326,979 | ||||||
993,230 | ||||||||
Consumer Staples — 1.0% | ||||||||
495,000 | Coca-Cola Refreshments USA, Inc., | |||||||
7.375%, 3/3/14 | 524,661 | |||||||
300,000 | Equifax, Inc., 4.450%, 12/1/14 | 315,851 | ||||||
840,512 | ||||||||
Utilities — 0.8% | ||||||||
371,978 | Great River Energy, 144a, | |||||||
5.829%, 7/1/17 | 403,748 | |||||||
298,000 | Monongahela Power Co., Inc., 144a, | |||||||
7.950%, 12/15/13 | 312,447 | |||||||
716,195 | ||||||||
Information Technology — 0.7% | ||||||||
150,000 | Analog Devices, Inc., 5.000%, 7/1/14 | 158,177 | ||||||
450,000 | Hewlett-Packard Co., 3.000%, 9/15/16 | 465,780 | ||||||
623,957 | ||||||||
Total Corporate Bonds | $ | 24,000,892 | ||||||
Commercial Mortgage-Backed Securities — 17.0% | ||||||||
375,000 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2005-1, Class A4, | ||||||||
5.077%, 11/10/42(A) | 381,957 | |||||||
940,000 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2005-6, Class A4, 5.187%, 9/10/47(A) | 1,032,036 | |||||||
565,000 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2006-4, Class A4, 5.634%, 7/10/46 | 634,961 | |||||||
415,000 | Bear Stearns Commercial Mortgage | |||||||
Securities, Ser 2005-PWR8, Class A4, | ||||||||
4.674%, 6/11/41†† | 443,396 | |||||||
750,000 | Bear Stearns Commercial Mortgage | |||||||
Securities, Ser 2007-PW16, Class A4, | ||||||||
5.715%, 6/11/40(A) | 873,621 | |||||||
400,000 | Citigroup/Deutsche Bank Commercial | |||||||
Mortgage Trust, Ser 2006-CD3, | ||||||||
Class A4, 5.658%, 10/15/48 | 405,865 | |||||||
615,079 | Citigroup/Deutsche Bank Commercial | |||||||
Mortgage Trust, Ser 2007-CD5, | ||||||||
Class A4, 5.886%, 11/15/44(A) | 717,608 | |||||||
18,387 | Commercial Mortgage Asset Trust, Ser | |||||||
1999-C1, Class A4, | ||||||||
6.975%, 1/17/32(A) | 18,424 | |||||||
567,125 | Commercial Mortgage Pass Through | |||||||
Certificates, Ser 2004-LB2A, Class | ||||||||
A4, 4.715%, 3/10/39 | 583,717 |
27 |
Touchstone Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Commercial Mortgage-Backed Securities — 17.0% (Continued) | ||||||||
$ | 350,000 | Commercial Mortgage Pass Through | ||||||
Certificates, Ser 2012-9W57, Class A, | ||||||||
144a, 2.365%, 2/10/29 | $ | 364,701 | ||||||
707,765 | Commercial Mortgage Pass Through | |||||||
Certificates, Ser 2012-CR4, Class A1, | ||||||||
0.704%, 10/15/45 | 707,064 | |||||||
665,000 | Credit Suisse First Boston Mortgage | |||||||
Securities Corp., Ser 2005-C2, Class | ||||||||
A4, 4.832%, 4/15/37 | 705,131 | |||||||
890,000 | Credit Suisse Mortgage Capital | |||||||
Certificates, Ser 2006-C3, Class A3, | ||||||||
5.804%, 6/15/38(A) | 996,059 | |||||||
509,666 | DBUBS Mortgage Trust, Ser | |||||||
2011-LC3A, Class A1, | ||||||||
2.238%, 8/10/44 | 517,736 | |||||||
111,193 | FDIC Structured Sale Guaranteed | |||||||
Notes, Ser 2010-C1, Class A, 144a, | ||||||||
2.980%, 12/6/20 | 116,320 | |||||||
320,000 | Fontainebleau Miami Beach Trust, Ser | |||||||
2012-FBLU, Class A, 144a, | ||||||||
2.887%, 5/5/27 | 326,212 | |||||||
67,223 | GE Capital Commercial Mortgage | |||||||
Corp., Ser 2003-C2, Class A4, | ||||||||
5.145%, 7/10/37 | 67,567 | |||||||
165,819 | GMAC Commercial Mortgage | |||||||
Securities, Inc., Ser 2003-C2, Class | ||||||||
A2, 5.450%, 5/10/40(A) | 167,074 | |||||||
864,553 | Greenwich Capital Commercial | |||||||
Funding Corp., Ser 2004-GG1, Class | ||||||||
A7, 5.317%, 6/10/36(A) | 888,797 | |||||||
198,756 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2003-CB6, Class A2, | ||||||||
5.255%, 7/12/37(A) | 199,908 | |||||||
17,030 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2005-LDP3, Class A3, | ||||||||
4.959%, 8/15/42 | 17,053 | |||||||
805,000 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2007-CB18, Class A4, | ||||||||
5.440%, 6/12/47 | 913,136 | |||||||
715,000 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2006-C1, Class A4, | ||||||||
5.156%, 2/15/31†† | 786,875 | |||||||
392,000 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2006-C1, Class AM, | ||||||||
5.217%, 2/15/31(A)†† | 432,693 | |||||||
258,284 | Merrill Lynch Mortgage Investors, Inc., | |||||||
Ser 1998-C1, Class A3, | ||||||||
6.720%, 11/15/26(A) | 283,399 | |||||||
924,729 | Morgan Stanley Capital I, Ser | |||||||
2004-IQ7, Class A4, | ||||||||
5.419%, 6/15/38(A) | 959,299 | |||||||
475,000 | Morgan Stanley Capital I Trust, Ser | |||||||
2006-HQ9, Class AJ, | ||||||||
5.793%, 7/12/44(A) | 519,207 | |||||||
450,000 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2005-C20, Class A7, | ||||||||
5.118%, 7/15/42(A) | 487,576 | |||||||
320,009 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2005-C21, Class A4, | ||||||||
5.241%, 10/15/44(A) | 349,217 | |||||||
Total Commercial Mortgage-Backed Securities | $ | 14,896,609 | ||||||
U.S. Government Mortgage-Backed Obligations — 7.0% | ||||||||
78,822 | FHLMC, Pool #C66916, 7.000%, 5/1/32 | 92,289 | ||||||
37,344 | FHLMC, Pool #D94598, 6.500%, 4/1/21 | 40,681 | ||||||
191,252 | FHLMC, Pool #G01840, 5.000%, 7/1/35 | 206,664 | ||||||
45,319 | FHLMC, Pool #G30085, 7.500%, 10/1/17 | 48,928 | ||||||
305,220 | FNMA, Pool #256272, 5.500%, 6/1/26 | 334,442 | ||||||
483,983 | FNMA, Pool #256852, 6.000%, 8/1/27 | 535,008 | ||||||
725 | FNMA, Pool #323441, 7.000%, 12/1/13 | 729 | ||||||
74,230 | FNMA, Pool #323832, 7.500%, 7/1/29 | 89,361 | ||||||
5,116 | FNMA, Pool #334593, 7.000%, 5/1/24 | 5,973 | ||||||
28,951 | FNMA, Pool #546474, 7.000%, 1/1/15 | 29,220 | ||||||
140,103 | FNMA, Pool #665773, 7.500%, 6/1/31 | 159,966 | ||||||
651,114 | FNMA, Pool #725424, 5.500%, 4/1/34 | 716,911 | ||||||
122,769 | FNMA, Pool #735484, 5.000%, 5/1/35 | 133,307 | ||||||
346,739 | FNMA, Pool #960376, 5.500%, 12/1/37 | 378,202 | ||||||
285,553 | FNMA, Pool #AE0363, 5.000%, 7/1/37 | 310,376 | ||||||
141,454 | FNMA, Pool #AL0302, 5.000%, 4/1/24 | 152,675 | ||||||
479,228 | FNMA, Pool #AL1105, 4.500%, 12/1/40 | 520,597 | ||||||
492,079 | FNMA, Pool #AL2591, 5.500%, 5/1/38 | 530,272 | ||||||
664,837 | FNMA, Pool #MA0641, 4.000%, 2/1/31 | 713,993 | ||||||
637,514 | FNMA, Pool #MA0667, 4.000%, 3/1/31 | 684,650 | ||||||
362 | GNMA, Pool #2707, 5.500%, 1/20/14 | 365 | ||||||
625 | GNMA, Pool #2802, 5.500%, 7/20/14 | 627 | ||||||
8,034 | GNMA, Pool #2843, 5.500%, 11/20/14 | 8,094 | ||||||
32,895 | GNMA, Pool #344233, 8.000%, 2/15/23 | 37,566 | ||||||
87,165 | GNMA, Pool #345123, 8.000%, 12/15/23 | 100,038 | ||||||
15,958 | GNMA, Pool #569337, 6.500%, 4/15/22 | 18,183 | ||||||
43,366 | GNMA, Pool #578189, 6.000%, 2/15/32 | 49,395 | ||||||
39,258 | GNMA, Pool #780322, 8.000%, 11/15/22 | 42,608 | ||||||
11,019 | GNMA, Pool #780327, 8.000%, 11/15/17 | 11,784 | ||||||
28,879 | GNMA, Pool #814, 8.000%, 8/20/17 | 31,151 | ||||||
6,998 | GNMA, Pool #8426, 3.000%, 11/20/18(A) | 7,298 | ||||||
28 |
Touchstone Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed Obligations — 7.0% (Continued) | ||||||||
$ | 163,799 | GNMA, Pool #894160, 2.076%, 6/20/61(A) | $ | 174,445 | ||||
Total U.S. Government Mortgage-Backed Obligations | $ | 6,165,798 | ||||||
U.S. Government Agency Obligations — 5.2% | ||||||||
471,000 | Government Trust Certificate, | |||||||
0.000%, 11/15/13 | 467,977 | |||||||
955,000 | Government Trust Certificate, | |||||||
0.000%, 5/15/15# | 931,093 | |||||||
583,000 | Government Trust Certificate, | |||||||
0.000%, 10/1/16# | 558,915 | |||||||
1,010,000 | Overseas Private Investment Corp., | |||||||
0.000%, 4/30/15# | 1,015,080 | |||||||
96,264 | Small Business Administration | |||||||
Participation Certificates, | ||||||||
5.800%, 12/1/18 | 104,479 | |||||||
101,938 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20A, Class 1, 6.140%, 1/1/22 | 113,261 | |||||||
83,485 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20C, Class 1, 6.070%, 3/1/22 | 92,959 | |||||||
108,661 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-10B, Class 1, 4.580%, 3/1/18 | 115,459 | |||||||
203,175 | Small Business Administration Pools, | |||||||
503795, 0.750%, 6/25/22(A) | 204,001 | |||||||
113,684 | Small Business Administration Pools, | |||||||
506207, 1.000%, 11/25/14(A) | 113,567 | |||||||
86,169 | Small Business Administration Pools, | |||||||
507442, 3.625%, 5/25/16(A) | 87,535 | |||||||
348,381 | Small Business Administration Pools, | |||||||
507682, 0.650%, 1/25/26(A) | 349,077 | |||||||
255,454 | Small Business Administration Pools, | |||||||
508374, 0.750%, 4/25/28(A) | 256,719 | |||||||
114,234 | United States Small Business Adminis- | |||||||
tration, Ser 2004-P10A, Class 1, | ||||||||
4.504%, 2/1/14 | 116,727 | |||||||
Total U.S. Government Agency Obligations | $ | 4,526,849 | ||||||
Agency Collateralized Mortgage Obligations — 4.9% | ||||||||
159,598 | FHLMC REMIC, Ser 2510 Class TA, | |||||||
4.000%, 6/15/32 | 169,206 | |||||||
268,556 | FNMA REMIC, Ser 2003-119, Class PU, | |||||||
4.000%, 11/25/33 | 279,293 | |||||||
116,186 | FNMA REMIC, Ser 2003-19, Class ME, | |||||||
4.000%, 1/25/33 | 119,983 | |||||||
231,088 | FNMA REMIC, Ser 2003-42, Class CA, | |||||||
4.000%, 5/25/33 | 249,564 | |||||||
58,926 | FNMA REMIC, Ser 2003-66, Class AP, | |||||||
3.500%, 11/25/32 | 60,724 | |||||||
641,229 | FNMA REMIC, Ser 2010-13, Class WD, | |||||||
4.250%, 3/25/25 | 682,172 | |||||||
855,628 | FNMA REMIC, Ser 2012-102, Class NA, | |||||||
1.500%, 9/25/27 | 855,461 | |||||||
336,349 | GNMA, Ser 2002-72, Class AB, | |||||||
4.500%, 10/20/32 | 373,714 | |||||||
23,251 | GNMA, Ser 2004-12, Class BA, | |||||||
4.807%, 8/16/32 | 23,343 | |||||||
406,178 | GNMA, Ser 2011-161, Class A, | |||||||
1.738%, 1/16/34 | 413,771 | |||||||
377,291 | GNMA, Ser 2011-57, Class BA, | |||||||
3.000%, 5/20/40 | 395,130 | |||||||
353,707 | GNMA, Ser 2012-27, Class A, | |||||||
1.614%, 7/16/39 | 361,017 | |||||||
307,682 | NCUA Guaranteed Notes, Ser 2010-C1, | |||||||
Class A1, 1.600%, 10/29/20 | 312,840 | |||||||
Total Agency Collateralized Mortgage Obligations | $ | 4,296,218 | ||||||
Municipal Bonds — 2.7% | ||||||||
California— 0.9% | ||||||||
625,000 | Orange County CA Pension Oblg, Txbl | |||||||
Ser A, 0.760%, 6/30/14 | 624,462 | |||||||
180,000 | Southern California Public Power | |||||||
Authority, Rev, Ser 2010-B, | ||||||||
3.326%, 7/1/14 | 184,282 | |||||||
808,744 | ||||||||
Connecticut— 0.5% | ||||||||
425,000 | State of Connecticut, Ser A, UTGO, | |||||||
1.030%, 5/15/18(A) | 434,876 | |||||||
District of Columbia— 0.2% | ||||||||
210,000 | District of Columbia, UTGO, | |||||||
2.585%, 6/1/13 | 210,720 | |||||||
Louisiana— 0.7% | ||||||||
625,387 | Louisiana Local Government | |||||||
Environmental Facilities & | ||||||||
Community Development | ||||||||
Authority, 1.520%, 2/1/18 | 632,122 | |||||||
Michigan— 0.4% | ||||||||
300,000 | Michigan State Strategic Fund, Waste | |||||||
Management, Inc. Project, | ||||||||
3.200%, 8/1/27(A) | 302,597 | |||||||
Total Municipal Bonds | $ | 2,389,059 | ||||||
Non-Agency Collateralized Mortgage Obligations — 2.7% | ||||||||
262,159 | Community Program Loan Trust, Ser | |||||||
1987-A, Class A5, 4.500%, 4/1/29 | 264,738 |
29 |
Touchstone Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Non-Agency Collateralized Mortgage Obligations — 2.7% (Continued) | ||||||||
$ | 821,554 | FDIC Structured Sale Guaranteed | ||||||
Notes, Ser 2010-S1, Class 2A, 144a, | ||||||||
3.250%, 4/25/38 | $ | 867,510 | ||||||
241,792 | FDIC Structured Sale Guaranteed | |||||||
Notes, Ser 2010-S3, Class A, 144a, | ||||||||
2.740%, 12/3/20 | 249,868 | |||||||
505,902 | Sequoia Mortgage Trust, Ser 2013-1, | |||||||
Class 2A1, 1.855%, 2/25/43(A) | 497,158 | |||||||
488,792 | Sequoia Mortgage Trust, Ser 2013-2, | |||||||
Class A, 1.874%, 2/25/43(A) | 488,762 | |||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 2,368,036 | ||||||
Shares | ||||||||
Investment Fund — 2.7% | ||||||||
2,378,339 | Touchstone Institutional Money Market Fund^ | 2,378,339 | ||||||
Total Investment Securities —99.9% | ||||||||
(Cost $87,048,232) | $ | 87,582,467 | ||||||
Other Assets in Excess of | ||||||||
Liabilities — 0.1% | 107,916 | |||||||
Net Assets — 100.0% | $ | 87,690,383 |
# Strips Security - Zero Coupon Bond.
(A) | Variable rate security - the rate reflected is the rate in effect as of March 31, 2013. |
(B) | Step Bond. A bond that pays an initial interest rate for the first period and then a higher interest rate for the following periods until maturity. The interest rate shown reflects the rate in effect at March 31, 2013. |
^ Affiliated Fund. See Note 4 in Notes to Financial Statements.
†† | 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. TheFundreceivesprincipalandinterest payments directly from these trusts. |
Portfolio Abbreviations:
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
MTN -Medium Term Note
NCUA - National Credit Union Administration
PLC - Public Limited Company
REMIC - Real Estate Mortgage Investment Conduit
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, 2013, these securities were valued at $14,860,426 or 16.9% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
30 |
Touchstone Short Duration Fixed Income Fund
March 31, 2013 (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 | ||||||||||||
Asset-Backed Securities | $ | — | $ | 26,560,667 | $ | — | $ | 26,560,667 | ||||||||
Corporate Bonds | — | 24,000,892 | — | 24,000,892 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 14,896,609 | — | 14,896,609 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 6,165,798 | — | 6,165,798 | ||||||||||||
U.S. Government Agency Obligations | — | 4,526,849 | — | 4,526,849 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 4,296,218 | — | 4,296,218 | ||||||||||||
Municipal Bonds | — | 2,389,059 | — | 2,389,059 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 2,368,036 | — | 2,368,036 | ||||||||||||
Investment Fund | 2,378,339 | — | — | 2,378,339 | ||||||||||||
$ | 87,582,467 |
See accompanying Notes to Financial Statements.
31 |
Portfolio of Investments
Touchstone Small Cap Core Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 96.9% | ||||||||
Financials — 23.2% | ||||||||
Alexander & Baldwin, Inc.* | 515,678 | $ | 18,435,488 | |||||
Alleghany Corp.* | 30,412 | 12,040,719 | ||||||
Eaton Vance Corp. | 754,781 | 31,572,489 | ||||||
First Industrial Realty Trust, Inc. REIT | 958,981 | 16,427,345 | ||||||
Hatteras Financial Corp. REIT | 474,445 | 13,014,026 | ||||||
MBIA, Inc.*† | 1,634,624 | 16,787,588 | ||||||
Montpelier Re Holdings Ltd. (Bermuda) | 851,462 | 22,180,585 | ||||||
Tejon Ranch Co.* | 436,769 | 13,006,981 | ||||||
White Mountains Insurance Group Ltd. (Bermuda) | 30,394 | 17,237,045 | ||||||
160,702,266 | ||||||||
Industrials — 15.9% | ||||||||
Corrections Corp. of America | 693,673 | 27,101,804 | ||||||
Kaman Corp. | 463,648 | 16,445,595 | ||||||
Matson, Inc. | 796,306 | 19,589,128 | ||||||
Old Dominion Freight Line, Inc.* | 866,694 | 33,107,711 | ||||||
Ritchie Bros Auctioneers, Inc. (Canada)† | 631,321 | 13,699,666 | ||||||
109,943,904 | ||||||||
Consumer Discretionary — 14.8% | ||||||||
American Eagle Outfitters, Inc. | 642,219 | 12,009,495 | ||||||
Cabela's, Inc.* | 555,524 | 33,764,749 | ||||||
Columbia Sportswear Co.† | 234,361 | 13,564,815 | ||||||
Service Corp. International | 1,895,520 | 31,712,050 | ||||||
Sturm Ruger & Co., Inc.† | 220,032 | 11,162,223 | ||||||
102,213,332 | ||||||||
Materials — 14.0% | ||||||||
Albemarle Corp. | 433,653 | 27,111,986 | ||||||
Kraton Performance Polymers, Inc.* | 521,289 | 12,198,163 | ||||||
Martin Marietta Materials, Inc. | 122,122 | 12,458,886 | ||||||
NewMarket Corp.† | 110,793 | 28,846,065 | ||||||
Tredegar Corp. | 566,315 | 16,672,314 | ||||||
97,287,414 | ||||||||
Information Technology — 9.3% | ||||||||
Advent Software, Inc.* | 525,695 | 14,703,689 | ||||||
Micrel, Inc. | 1,453,425 | 15,275,497 | ||||||
ValueClick, Inc.* | 1,170,174 | 34,578,642 | ||||||
64,557,828 | ||||||||
Consumer Staples — 7.8% | ||||||||
Energizer Holdings, Inc. | 157,827 | 15,740,087 | ||||||
Nu Skin Enterprises, Inc. Class A† | 241,765 | 10,686,012 | ||||||
Pricesmart, Inc. | 355,445 | 27,664,284 | ||||||
54,090,383 | ||||||||
Energy — 7.0% | ||||||||
Atwood Oceanics, Inc.* | 588,456 | 30,917,478 | ||||||
Kinder Morgan Management LLC* | 2 | 178 | ||||||
World Fuel Services Corp. | 445,469 | 17,694,029 | ||||||
48,611,685 | ||||||||
Health Care — 4.9% | ||||||||
Tenet Healthcare Corp.* | 717,067 | 34,118,048 | ||||||
Total Common Stocks | $ | 671,524,860 | ||||||
Investment Funds— 15.0% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 78,835,879 | 78,835,879 | ||||||
Touchstone Institutional Money Market Fund^ | 24,948,249 | 24,948,249 | ||||||
Total Investment Funds | $ | 103,784,128 | ||||||
Total Investment Securities —111.9% | ||||||||
(Cost $611,655,525) | $ | 775,308,988 | ||||||
Liabilities in Excess of Other Assets — (11.9%) | (82,725,261 | ) | ||||||
Net Assets — 100.0% | $ | 692,583,727 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $76,820,110. |
Portfolio Abbreviations:
LLC- Limited Liability 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 | $ | 671,524,860 | $ | — | $ | — | $ | 671,524,860 | ||||||||
Investment Funds | 103,784,128 | — | — | 103,784,128 | ||||||||||||
$ | 775,308,988 |
See accompanying Notes to Financial Statements.
32 |
Portfolio of Investments
Touchstone Small Cap Value Fund – March 31, 2013 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks— 97.6% | ||||||||
Financials — 25.7% | ||||||||
Anworth Mortgage Asset Corp. REIT | 98,920 | $ | 626,164 | |||||
Astoria Financial Corp. | 54,420 | 536,581 | ||||||
Brookline Bancorp, Inc. | 55,690 | 509,007 | ||||||
Campus Crest Communities, Inc. REIT | 40,640 | 564,896 | ||||||
Capitol Federal Financial, Inc. | 44,687 | 539,372 | ||||||
Capstead Mortgage Corp. REIT | 37,480 | 480,494 | ||||||
Cohen & Steers, Inc.† | 4,860 | 175,300 | ||||||
CVB Financial Corp. | 47,290 | 532,958 | ||||||
First Financial Bancorp | 32,594 | 523,134 | ||||||
Hanover Insurance Group, Inc. (The) | 12,630 | 627,458 | ||||||
Hercules Technology Growth Capital, Inc. | 46,279 | 566,918 | ||||||
Iberiabank Corp. | 15,561 | 778,361 | ||||||
Infinity Property & Casualty Corp. | 8,350 | 469,270 | ||||||
Manning & Napier, Inc. | 22,290 | 368,677 | ||||||
National Bank Holdings Corp. - Class A | 16,190 | 296,277 | ||||||
Sterling BanCorp./NY | 36,190 | 367,690 | ||||||
Sterling Financial Corp. WA | 4,340 | 94,135 | ||||||
Summit Hotel Properties, Inc. REIT | 50,220 | 525,803 | ||||||
UMB Financial Corp. | 12,530 | 614,847 | ||||||
Westamerica Bancorporation | 10,580 | 479,591 | ||||||
9,676,933 | ||||||||
Industrials — 17.8% | ||||||||
ABM Industries, Inc. | 40,370 | 897,829 | ||||||
Barnes Group, Inc. | 14,760 | 427,007 | ||||||
Brady Corp.- Class A | 13,575 | 455,170 | ||||||
Con-way, Inc. | 15,250 | 536,952 | ||||||
Curtiss-Wright Corp. | 22,858 | 793,173 | ||||||
Harsco Corp. | 19,920 | 493,418 | ||||||
Kaydon Corp. | 27,690 | 708,310 | ||||||
Knight Transportation, Inc. | 58,760 | 946,036 | ||||||
Resources Connection, Inc. | 58,065 | 737,426 | ||||||
Ritchie Bros Auctioneers, Inc. (CA)† | 28,320 | 614,544 | ||||||
Simpson Manufacturing Co., Inc. | 3,380 | 103,462 | ||||||
6,713,327 | ||||||||
Information Technology — 16.4% | ||||||||
ADTRAN, Inc.† | 25,705 | 505,103 | ||||||
Brooks Automation, Inc. | 65,211 | 663,849 | ||||||
Cohu, Inc. | 35,826 | 335,331 | ||||||
Diebold, Inc. | 17,100 | 518,472 | ||||||
Forrester Research, Inc. | 19,050 | 602,932 | ||||||
Intersil Corp.- Class A | 99,680 | 868,213 | ||||||
Methode Electronics, Inc. | 36,280 | 467,286 | ||||||
Micrel, Inc. | 83,805 | 880,791 | ||||||
MKS Instruments, Inc. | 23,430 | 637,296 | ||||||
Tessera Technologies, Inc. | 37,430 | 701,812 | ||||||
6,181,085 | ||||||||
Consumer Discretionary — 12.5% | ||||||||
Columbia Sportswear Co.† | 3,580 | 207,210 | ||||||
Dana Holding Corp. | 18,690 | 333,243 | ||||||
Ethan Allen Interiors, Inc. | 12,960 | 426,643 | ||||||
Finish Line, Inc. (The) - Class A | 39,160 | 767,144 | ||||||
Fred's, Inc. - Class A | 23,869 | 326,528 | ||||||
Guess?, Inc. | 20,470 | 508,270 | ||||||
Hillenbrand, Inc. | 10,510 | 265,693 | ||||||
Jones Group, Inc. (The) | 23,360 | 297,139 | ||||||
Men's Wearhouse, Inc. (The) | 21,690 | 724,880 | ||||||
Regis Corp. | 15,940 | 289,949 | ||||||
Sotheby's | 15,130 | 566,013 | ||||||
4,712,712 | ||||||||
Materials — 10.9% | ||||||||
AMCOL International Corp. | 16,400 | 495,116 | ||||||
Cabot Corp. | 11,430 | 390,906 | ||||||
Globe Specialty Metals, Inc. | 40,740 | 567,101 | ||||||
Haynes International, Inc. | 10,820 | 598,346 | ||||||
Kronos Worldwide, Inc.† | 23,180 | 362,767 | ||||||
Noranda Aluminum Holding Corp. | 106,230 | 476,973 | ||||||
Schnitzer Steel Industries, Inc.- Class A | 23,950 | 638,507 | ||||||
Tronox Ltd.- Class A† | 29,170 | 577,858 | ||||||
4,107,574 | ||||||||
Energy — 5.1% | ||||||||
CARBO Ceramics, Inc. | 255 | 23,223 | ||||||
EXCO Resources, Inc.† | 55,650 | 396,784 | ||||||
Tidewater, Inc. | 13,530 | 683,265 | ||||||
Tsakos Energy Navigation Ltd. | 45,500 | 197,925 | ||||||
W&T Offshore, Inc. | 43,285 | 614,647 | ||||||
1,915,844 | ||||||||
Health Care — 4.3% | ||||||||
Hill-Rom Holdings, Inc. | 12,499 | 440,215 | ||||||
Meridian Bioscience, Inc. | 25,745 | 587,501 | ||||||
STERIS Corp. | 14,290 | 594,607 | ||||||
1,622,323 | ||||||||
Consumer Staples — 3.5% | ||||||||
Andersons, Inc. (The) | 9,725 | 520,482 | ||||||
Fresh del Monte Produce, Inc. | 22,180 | 598,416 | ||||||
Universal Corp.† | 3,301 | 184,988 | ||||||
1,303,886 | ||||||||
Utilities — 1.4% | ||||||||
ALLETE, Inc. | 4,540 | 222,551 | ||||||
Black Hills Corp. | 6,410 | 282,297 | ||||||
504,848 | ||||||||
Total Common Stocks | $ | 36,738,532 | ||||||
Investment Funds— 10.0% | ||||||||
Invesco Government & Agency Portfolio, Institutional Class** | 2,989,420 | 2,989,420 | ||||||
Touchstone Institutional Money Market Fund^ | 784,339 | 784,339 | ||||||
Total Investment Funds | $ | 3,773,759 |
33 |
Touchstone Small Cap Value Fund
March 31, 2013 (Unaudited) (Continued)
Market | ||||
Value | ||||
Total Investment Securities —107.6% | ||||
(Cost $37,787,910) | $ | 40,512,291 | ||
Liabilities in Excess of Other Assets — (7.6%) | (2,869,444 | ) | ||
Net Assets — 100.0% | $ | 37,642,847 |
** | Represents collateral for securities loaned. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2013 was $2,904,687. |
Portfolio Abbreviations:
REIT - Real Estate Investment Trust
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Common Stocks | $ | 36,738,532 | $ | — | $ | — | $ | 36,738,532 | ||||||||||
Investment Funds | 3,773,759 | — | — | 3,773,759 | ||||||||||||||
$ | 40,512,291 |
See accompanying Notes to Financial Statements.
34 |
Portfolio of Investments
Touchstone Total Return Bond Fund – March 31, 2013 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds— 36.1% | ||||||||
Financials — 11.5% | ||||||||
$ | 2,000,000 | American Express Credit Corp. MTN, | ||||||
1.750%, 6/12/15 | $ | 2,043,562 | ||||||
1,081,000 | Delphi Financial Group, Inc., | |||||||
7.875%, 1/31/20 | 1,331,922 | |||||||
799,732 | EJM Airport LLC, 6.271%, 5/15/20 | 952,325 | ||||||
2,000,000 | Fishers Lane Associates LLC, 144a, | |||||||
3.666%, 8/5/30 | 2,038,338 | |||||||
1,417,000 | Ford Motor Credit Co. LLC, | |||||||
5.625%, 9/15/15 | 1,542,898 | |||||||
1,604,000 | General Electric Capital Corp. MTN, | |||||||
5.625%, 5/1/18 | 1,898,286 | |||||||
1,260,000 | National Rural Utilities Cooperative | |||||||
Finance Corp., 10.375%, 11/1/18 | 1,838,865 | |||||||
1,500,000 | Provident Cos., Inc., 7.000%, 7/15/18 | 1,786,605 | ||||||
2,000,000 | Torchmark Corp., 3.800%, 9/15/22 | 2,077,458 | ||||||
2,000,000 | USB Capital IX, 3.500%, 10/29/49(A) | 1,855,200 | ||||||
2,000,000 | Wachovia Capital Trust III, | |||||||
5.570%, 12/31/49(A) | 2,007,000 | |||||||
19,372,459 | ||||||||
Industrials — 10.6% | ||||||||
62,819 | Astro Offshore Corp., | |||||||
6.000%, 12/20/19 | 70,091 | |||||||
118,220 | Burlington Northern and Santa Fe | |||||||
Railway Co. 1998-C Pass Through | ||||||||
Trust, 6.230%, 7/2/18 | 128,604 | |||||||
133,615 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2004-1 Pass Through | ||||||||
Trust, 4.575%, 1/15/21 | 146,030 | |||||||
980,064 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2005-4 Pass Through | ||||||||
Trust, 4.967%, 4/1/23 | 1,120,128 | |||||||
389,000 | Canal Barge Co., Inc., 4.500%, 11/12/34 | 449,801 | ||||||
1,706,956 | Continental Airlines 2000-2 Class A-1 | |||||||
Pass Through Trust, 7.707%, 4/2/21 | 1,920,326 | |||||||
722,850 | CSX Transportation, Inc., | |||||||
6.251%, 1/15/23 | 874,649 | |||||||
300,000 | CSX Transportation, Inc., | |||||||
6.550%, 6/15/13 | 303,554 | |||||||
1,786,477 | Delta Air Lines 2010-2 Class A Pass | |||||||
Through Trust, 4.950%, 5/23/19 | 1,956,192 | |||||||
1,168,781 | Federal Express Corp. 1998 Pass | |||||||
Through Trust, 6.845%, 1/15/19 | 1,320,723 | |||||||
121,453 | Federal Express Corp. 1999 Pass Through Trust, 7.650%, 1/15/22 | 148,780 | ||||||
1,350,000 | Kansas City Southern DE Mexico SA | |||||||
DE CV, 8.000%, 2/1/18 | 1,474,875 | |||||||
195,000 | Matson Navigation Co., Inc., | |||||||
5.337%, 9/4/28 | 221,963 | |||||||
1,278,903 | Southwest Airlines Co. 2007-1 Pass | |||||||
Through Trust, 6.150%, 8/1/22 | 1,509,106 | |||||||
165,835 | Sterling Equipment, 6.125%, 9/28/19 | 183,992 | ||||||
135,545 | Union Pacific Railroad Co. 2001 Pass | |||||||
Through Trust, 6.630%, 1/27/22 | 155,074 | |||||||
1,150,652 | Union Pacific Railroad Co. 2003 Pass | |||||||
Through Trust, 4.698%, 1/2/24 | 1,279,962 | |||||||
573,202 | Union Pacific Railroad Co. 2006 Pass | |||||||
Through Trust, 5.866%, 7/2/30 | 689,133 | |||||||
1,686,000 | United Rentals North America, Inc., | |||||||
9.250%, 12/15/19 | 1,922,040 | |||||||
1,701,000 | Vessel Management Services, Inc., | |||||||
5.125%, 4/16/35 | 1,955,534 | |||||||
17,830,557 | ||||||||
Utilities — 6.9% | ||||||||
1,794,496 | Bruce Mansfield Unit, 6.850%, 6/1/34 | 1,945,054 | ||||||
450,000 | California Water Service Co., | |||||||
5.500%, 12/1/40 | 552,771 | |||||||
1,600,000 | Commonwealth Edison Co., | |||||||
5.900%, 3/15/36 | 2,031,216 | |||||||
1,330,000 | Dominion Resources, Inc., | |||||||
2.584%, 9/30/66(A) | 1,242,165 | |||||||
1,400,000 | Entergy Louisiana LLC, | |||||||
4.440%, 1/15/26 | 1,587,358 | |||||||
99,000 | National Fuel Gas Co., 8.750%, 5/1/19 | 129,157 | ||||||
375,000 | Nevada Power Co., 5.875%, 1/15/15 | 408,653 | ||||||
1,265,000 | Nevada Power Co., 6.500%, 8/1/18 | 1,574,091 | ||||||
2,000,000 | NextEra Energy Capital Holdings, Inc., | |||||||
6.350%, 10/1/66(A) | 2,120,000 | |||||||
11,590,465 | ||||||||
Consumer Staples — 2.0% | ||||||||
1,412,680 | American Airlines 2011-1 Class B Pass | |||||||
Through Trust, 144a, | ||||||||
7.000%, 1/31/18 | 1,483,314 | |||||||
1,570,707 | CVS Pass-Through Trust, | |||||||
6.036%, 12/10/28 | 1,842,701 | |||||||
3,326,015 | ||||||||
Energy — 1.8% | ||||||||
1,253,000 | Chesapeake Energy Corp., | |||||||
6.625%, 8/15/20 | 1,368,902 | |||||||
1,551,000 | Petrobras International Finance Co. - | |||||||
Pifco, 3.500%, 2/6/17 | 1,601,397 | |||||||
2,970,299 | ||||||||
Consumer Discretionary — 1.0% | ||||||||
1,625,000 | Royal Caribbean Cruises Ltd., | |||||||
7.000%, 6/15/13 | 1,641,250 | |||||||
Telecommunication Services — 0.9% | ||||||||
1,500,000 | SBA Tower Trust, 144a, | |||||||
4.254%, 4/15/15 | 1,587,204 | |||||||
Transportation — 0.7% | ||||||||
1,056,000 | Totem Ocean Trailer Express, Inc., | |||||||
6.365%, 4/15/28 | 1,236,610 | |||||||
Health Care — 0.7% | ||||||||
1,075,000 | HCA, Inc., 7.250%, 9/15/20 | 1,189,219 | ||||||
Total Corporate Bonds | $ | 60,744,078 |
35 |
Touchstone Total Return Bond Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 22.2% | ||||||||
$ | 1,452,431 | 321 Henderson Receivables I LLC, Ser | ||||||
2012-1A, Class A, 144a, | ||||||||
4.210%, 2/16/65 | $ | 1,580,362 | ||||||
1,381,211 | 321 Henderson Receivables I LLC, Ser | |||||||
2012-2A, Class A, 144a, | ||||||||
3.840%, 10/15/59 | 1,457,777 | |||||||
575,000 | FPL Recovery Funding LLC, Ser | |||||||
2007-A, Class A4, 5.256%, 8/1/21 | 671,992 | |||||||
1,325,000 | JCP&L Transition Funding LLC, Ser | |||||||
2006-A, Class A4, 5.610%, 6/5/23 | 1,631,695 | |||||||
74,893 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2001-20A, Class 1, 6.290%, 1/1/21 | 82,717 | |||||||
505,207 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20H, Class 1, 5.310%, 8/1/22 | 552,018 | |||||||
460,304 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20B, Class 1, 4.840%, 2/1/23 | 507,803 | |||||||
159,922 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20D, Class 1, 4.760%, 4/1/23 | 175,904 | |||||||
105,803 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20D, Class 1, 4.770%, 4/1/24 | 115,569 | |||||||
708,648 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20K, Class 1, 4.880%, 11/1/24 | 775,585 | |||||||
70,729 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-10E, Class 1, 4.540%, 9/1/15 | 72,764 | |||||||
490,408 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20B, Class 1, 4.625%, 2/1/25 | 546,365 | |||||||
428,344 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20H, Class 1, 5.110%, 8/1/25 | 486,400 | |||||||
2,013,486 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20B, Class 1, 5.350%, 2/1/26 | 2,291,986 | |||||||
722,574 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20H, Class 1, 5.700%, 8/1/26 | 830,398 | |||||||
1,683,990 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20K, Class 1, 5.360%, 11/1/26 | 1,917,818 | |||||||
1,429,093 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20L, Class 1, 5.120%, 12/1/26 | 1,600,022 | |||||||
1,439,840 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20A, Class 1, 5.320%, 1/1/27 | 1,652,575 | |||||||
1,847,011 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20E, Class 1, 5.310%, 5/1/27 | 2,123,960 | |||||||
739,315 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20F, Class 1, 5.710%, 6/1/27 | 857,785 | |||||||
1,718,841 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20L, Class 1, 5.290%, 12/1/27 | 1,955,515 | |||||||
995,058 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-20A, Class 1, 5.170%, 1/1/28 | 1,138,644 | |||||||
1,257,980 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-20K, Class 1, 6.770%, 11/1/28 | 1,488,400 | |||||||
1,323,332 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20B, Class 1, 4.760%, 2/1/29 | 1,478,965 | |||||||
1,320,197 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20C, Class 1, 4.660%, 3/1/29 | 1,503,151 | |||||||
343,861 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20D, Class 1, 4.310%, 4/1/29 | 379,995 | |||||||
1,652,956 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20E, Class 1, 4.430%, 5/1/29 | 1,828,209 | |||||||
1,106,932 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20F, Class 1, 4.950%, 6/1/29 | 1,252,410 | |||||||
1,493,872 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20J, Class 1, 3.920%, 10/1/29 | 1,640,284 | |||||||
1,600,586 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2010-20F, Class 1, 3.880%, 6/1/30 | 1,741,444 | |||||||
1,005,988 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2010-20I, Class 1, 3.210%, 9/1/30 | 1,068,992 | |||||||
1,904,784 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2012-10C, Class 1, 1.240%, 5/1/22 | 1,906,975 | |||||||
Total Asset-Backed Securities | $ | 37,314,479 | ||||||
U.S. Government Mortgage-Backed Obligations — 19.2% | ||||||||
475,909 | FHLMC, Pool #A89148, | |||||||
4.000%, 10/1/39 | 505,856 | |||||||
232,871 | FNMA, Pool #465711, 4.680%, 8/1/28 | 262,882 | ||||||
1,663,304 | FNMA, Pool #469616, 3.500%, 11/1/21 | 1,796,745 | ||||||
1,700,000 | FNMA, Pool #469667, 3.540%, 12/1/21 | 1,823,861 | ||||||
1,593,862 | FNMA, Pool #745275, 5.000%, 2/1/36 | 1,730,678 | ||||||
119,445 | FNMA, Pool #874210, 5.260%, 1/1/25 | 139,144 | ||||||
78,613 | FNMA, Pool #888829, 5.832%, 6/1/37 | 91,237 | ||||||
174,218 | FNMA, Pool #958736, 4.940%, 5/1/19 | 197,977 | ||||||
464,345 | FNMA, Pool #AB1152, 4.000%, 6/1/25 | 496,969 | ||||||
286,137 | FNMA, Pool #AB3876, 4.000%, 11/1/41 | 308,366 | ||||||
448,910 | FNMA, Pool #AD0101, 4.879%, 7/1/19 | 515,770 | ||||||
515,506 | FNMA, Pool #AD0166, 4.876%, 8/1/19 | 592,938 | ||||||
191,149 | FNMA, Pool #AD0342, 4.639%, 10/1/19 | 221,117 |
36 |
Touchstone Total Return Bond Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed Obligations — 19.2% (Continued) | ||||||||
$ | 457,356 | FNMA, Pool #AD0786, 4.501%, 1/1/20 | $ | 527,360 | ||||
532,389 | FNMA, Pool #AD0910, 4.602%, 4/1/20 | 609,149 | ||||||
143,711 | FNMA, Pool #AD1608, 4.000%, 2/1/25 | 153,808 | ||||||
806,939 | FNMA, Pool #AD1656, 4.500%, 3/1/40 | 870,599 | ||||||
555,338 | FNMA, Pool #AE0209, 4.331%, 6/1/20 | 636,890 | ||||||
1,481,805 | FNMA, Pool #AE0446, 4.086%, 9/1/20 | 1,678,432 | ||||||
962,167 | FNMA, Pool #AE2771, 3.500%, 8/1/26 | 1,033,564 | ||||||
852,150 | FNMA, Pool #AE8886, 3.500%, 12/1/25 | 903,666 | ||||||
443,935 | FNMA, Pool #AH1519, 3.500%, 12/1/25 | 470,773 | ||||||
313,037 | FNMA, Pool #AH6301, 4.000%, 5/1/26 | 335,129 | ||||||
493,957 | FNMA, Pool #AH8854, 4.500%, 4/1/41 | 540,919 | ||||||
766,623 | FNMA, Pool #AI1856, 4.500%, 5/1/41 | 847,893 | ||||||
394,338 | FNMA, Pool #AL0247, 4.000%, 4/1/41 | 432,860 | ||||||
2,000,000 | FNMA, Pool #AM0566, 1.940%, 9/1/19 | 2,054,827 | ||||||
1,490,130 | FNMA, Pool #AT0924, 2.000%, 3/1/28 | 1,535,010 | ||||||
49,614 | GNMA, Pool #4441, 5.000%, 5/20/39 | 52,538 | ||||||
2,307,813 | GNMA, Pool #5276, 3.000%, 1/20/27 | 2,462,713 | ||||||
2,028,998 | GNMA, Pool #710077, 4.700%, 5/20/61 | 2,280,353 | ||||||
294,061 | GNMA, Pool #751408, 4.826%, 6/20/61 | 337,980 | ||||||
821,909 | GNMA, Pool #751409, 4.626%, 7/20/61 | 915,658 | ||||||
604,061 | GNMA, Pool #752631, | |||||||
4.500%, 10/20/40 | 672,339 | |||||||
730,316 | GNMA, Pool #756686, 4.697%, 9/20/61 | 824,959 | ||||||
562,980 | GNMA, Pool #757327, 4.295%, 7/20/61 | 629,671 | ||||||
2,410,772 | GNMA, Pool #766517, 4.661%, 4/20/62 | 2,749,003 | ||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 32,239,633 | ||||||
Agency Collateralized Mortgage Obligations — 9.8% | ||||||||
1,000,000 | FREMF Mortgage Trust, Ser 2011-K702, | |||||||
Class B, 144a, 4.770%, 4/25/44(A) | 1,100,837 | |||||||
1,000,000 | FREMF Mortgage Trust, Ser 2012-K19, | |||||||
Class B, 144a, 4.037%, 5/25/45(A) | 1,041,637 | |||||||
1,035,000 | FREMF Mortgage Trust, Ser 2012-K710, | |||||||
Class B, 144a, 3.818%, 6/25/47(A) | 1,086,907 | |||||||
491,908 | GNMA, Ser 2008-39, Class B, | |||||||
4.549%, 6/16/28 | 498,857 | |||||||
169,569 | GNMA, Ser 2009-114, Class A, | |||||||
3.103%, 12/16/38 | 174,423 | |||||||
875,000 | GNMA, Ser 2009-27, Class B, | |||||||
4.353%, 2/16/41 | 913,924 | |||||||
221,757 | GNMA, Ser 2009-86, Class A, | |||||||
3.536%, 9/16/35 | 229,217 | |||||||
2,245,865 | GNMA, Ser 2010-22, Class AD, | |||||||
3.633%, 10/16/39 | 2,339,915 | |||||||
302,211 | GNMA, Ser 2010-49, Class A, | |||||||
2.870%, 3/16/51 | 309,861 | |||||||
1,500,000 | GNMA, Ser 2011-1, Class B, | |||||||
4.344%, 6/16/41(A) | 1,623,192 | |||||||
999,213 | GNMA, Ser 2011-147, Class A, | |||||||
2.174%, 7/16/38 | 1,033,175 | |||||||
1,629,787 | GNMA, Ser 2011-31, Class A, | |||||||
2.210%, 12/16/35 | 1,664,644 | |||||||
1,061,532 | GNMA, Ser 2011-47, Class A, | |||||||
2.070%, 4/16/32 | 1,076,909 | |||||||
705,291 | GNMA, Ser 2012-22, Class AB, | |||||||
1.661%, 3/16/33 | 718,093 | |||||||
2,530,661 | GNMA, Ser 2012-53, Class AC, | |||||||
2.381%, 12/16/43 | 2,652,221 | |||||||
Total Agency Collateralized Mortgage Obligations | $ | 16,463,812 | ||||||
Commercial Mortgage-Backed Securities — 5.0% | ||||||||
1,350,000 | Citigroup Commercial Mortgage Trust, | |||||||
Ser 2007-C6, Class A4, | ||||||||
5.697%, 12/10/49(A) | 1,569,842 | |||||||
505,000 | Citigroup/Deutsche Bank Commercial | |||||||
Mortgage Trust, Ser 2006-CD3, | ||||||||
Class AJ, 5.688%, 10/15/48 | 467,953 | |||||||
1,490,750 | Greenwich Capital Commercial | |||||||
Funding Corp., Ser 2005-GG5, Class | ||||||||
A5, 5.224%, 4/10/37(A) | 1,626,967 | |||||||
1,425,000 | GS Mortgage Securities Corp. II, Ser | |||||||
2007-GG10, Class A4, | ||||||||
5.787%, 8/10/45(A) | 1,630,585 | |||||||
200,000 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2005-LDP4, Class AM, | ||||||||
4.999%, 10/15/42(A) | 216,599 | |||||||
344,949 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2006-CB17, Class A3, | ||||||||
5.450%, 12/12/43 | 344,910 | |||||||
1,000,000 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2007-LDPX, Class A3S, | ||||||||
5.317%, 1/15/49 | 1,029,609 | |||||||
1,400,000 | Merrill Lynch/Countrywide | |||||||
Commercial Mortgage Trust, Ser | ||||||||
2006-3, Class AM, | ||||||||
5.456%, 7/12/46(A) | 1,571,251 | |||||||
Total Commercial Mortgage-Backed Securities | $ | 8,457,716 | ||||||
U.S. Treasury Obligations — 3.1% | ||||||||
2,880,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 8/15/30# | 1,722,015 | |||||||
3,525,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 8/15/35# | 1,718,825 | |||||||
4,205,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 5/15/40# | 1,717,995 | |||||||
Total U.S. Treasury Obligations | $ | 5,158,835 | ||||||
U.S. Government Agency Obligations — 1.0% | ||||||||
2,994 | FHA Reilly, 6.840%, 6/1/14 | 2,994 | ||||||
27,212 | FHA USGI, 7.430%, 8/1/23 | 27,212 | ||||||
57,092 | Small Business Administration | |||||||
Participation Certificates, | ||||||||
6.150%, 2/1/18 | 61,725 |
37 |
Touchstone Total Return Bond Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Agency Obligations — 1.0% (Continued) | ||||||||
$ | 180,478 | Small Business Administration | ||||||
Participation Certificates, Ser | ||||||||
2001-20K, Class 1, 5.340%, 11/1/21 | $ | 198,541 | ||||||
1,150,000 | Tennessee Valley Authority, | |||||||
4.650%, 6/15/35 | 1,337,311 | |||||||
Total U.S. Government Agency Obligations | $ | 1,627,783 | ||||||
Sovereign Government Obligations — 1.0% | ||||||||
12,195 | Ecuador Government AID Bond, | |||||||
7.050%, 5/1/15 | 13,037 | |||||||
1,240,000 | Israel Government AID Bond, | |||||||
5.500%, 9/18/33 | 1,602,262 | |||||||
Total Sovereign Government Obligations | $ | 1,615,299 | ||||||
Shares | ||||||||
Investment Fund — 1.7% | ||||||||
2,887,511 | Touchstone Institutional Money Market Fund^ | 2,887,511 | ||||||
Total Investment Securities —99.1% | ||||||||
(Cost $162,064,530) | $ | 166,509,146 | ||||||
Other Assets in Excess of Liabilities — 0.9% | 1,562,201 | |||||||
Net Assets — 100.0% | $ | 168,071,347 |
# | Strips Security - Zero Coupon Bond. |
(A) | Variable rate security - the rate reflected is the rate in effect as of March 31, 2013. |
^ | Affiliated Fund. See Note 4 in Notes to Financial Statements. |
Portfolio Abbreviations:
FHA - Federal Housing Authority
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
MTN -Medium Term Note
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, 2013, these securities were valued at $11,376,376 or 6.8% 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 | ||||||||||||
Corporate Bonds | $ | — | $ | 60,744,078 | $ | — | $ | 60,744,078 | ||||||||
Asset-Backed Securities | — | 37,314,479 | — | 37,314,479 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 32,239,633 | — | 32,239,633 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 16,463,812 | — | 16,463,812 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 8,457,716 | — | 8,457,716 | ||||||||||||
U.S. Treasury Obligations | — | 5,158,835 | — | 5,158,835 | ||||||||||||
U.S. Government Agency Obligations | — | 1,627,783 | — | 1,627,783 | ||||||||||||
Sovereign Government Obligations | — | 1,615,299 | — | 1,615,299 | ||||||||||||
Investment Fund | 2,887,511 | — | — | 2,887,511 | ||||||||||||
$ | 166,509,146 |
See accompanying Notes to Financial Statements.
38 |
Portfolio of Investments
Touchstone Ultra Short Duration Fixed Income Fund – March 31, 2013 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds— 29.4% | ||||||||
Financials — 11.8% | ||||||||
$ | 600,000 | Bank of America Corp. MTN, | ||||||
1.722%, 1/30/14(A) | $ | 605,238 | ||||||
1,830,000 | Bear Stearns Cos. LLC (The), | |||||||
5.700%, 11/15/14†† | 1,972,310 | |||||||
1,200,000 | Caterpillar Financial Services Corp. | |||||||
MTN, 2.650%, 4/1/16 | 1,266,143 | |||||||
9,700,000 | Citigroup, Inc., 5.500%, 4/11/13 | 9,711,310 | ||||||
5,510,000 | CommonWealth REIT, 6.400%, 2/15/15 | 5,870,178 | ||||||
2,775,000 | Daimler Finance North America LLC, | |||||||
6.500%, 11/15/13 | 2,877,439 | |||||||
1,780,000 | Duke Realty LP, 5.400%, 8/15/14 | 1,877,163 | ||||||
1,072,000 | Duke Realty LP, 6.250%, 5/15/13 | 1,078,855 | ||||||
1,200,000 | ERAC USA Finance LLC, 144a, | |||||||
2.250%, 1/10/14 | 1,214,094 | |||||||
5,425,000 | ERP Operating LP, 5.200%, 4/1/13 | 5,425,000 | ||||||
2,464,000 | Genworth Financial, Inc., | |||||||
8.625%, 12/15/16 | 2,974,235 | |||||||
1,500,000 | Goldman Sachs Group, Inc. (The), | |||||||
4.750%, 7/15/13 | 1,517,996 | |||||||
8,650,000 | Goldman Sachs Group, Inc. (The), | |||||||
5.250%, 4/1/13 | 8,650,000 | |||||||
5,055,000 | HCP, Inc., 2.700%, 2/1/14 | 5,134,222 | ||||||
4,000,000 | HCP, Inc., 5.650%, 12/15/13 | 4,138,088 | ||||||
1,250,000 | JPMorgan Chase & Co. MTN, | |||||||
2.050%, 1/24/14 | 1,266,745 | |||||||
3,530,000 | KeyCorp MTN, 6.500%, 5/14/13 | 3,554,265 | ||||||
700,000 | Kimco Realty Corp., 4.820%, 6/1/14 | 732,498 | ||||||
3,000,000 | MetLife Institutional Funding II, 144a, | |||||||
0.650%, 1/6/15(A) | 3,003,168 | |||||||
5,000,000 | Morgan Stanley, 6.750%, 10/15/13 | 5,156,925 | ||||||
535,000 | ProLogis LP, 7.625%, 8/15/14 | 578,341 | ||||||
1,500,000 | Royal Bank of Canada, | |||||||
1.450%, 10/30/14 | 1,522,420 | |||||||
1,000,000 | Simon Property Group LP, | |||||||
6.750%, 5/15/14 | 1,051,865 | |||||||
71,178,498 | ||||||||
Utilities — 6.1% | ||||||||
1,320,000 | Duke Energy Corp., 5.650%, 6/15/13 | 1,333,537 | ||||||
2,630,000 | Exelon Generation Co. LLC, | |||||||
5.350%, 1/15/14 | 2,726,397 | |||||||
5,525,000 | Great Plains Energy, Inc., | |||||||
2.750%, 8/15/13 | 5,558,802 | |||||||
5,500,000 | Jemena Ltd., 144a, 5.300%, 9/25/15 | 5,881,431 | ||||||
849,929 | Kiowa Power Partners LLC, 144a, | |||||||
4.811%, 12/30/13 | 856,489 | |||||||
550,000 | NextEra Energy Capital Holdings, Inc., | |||||||
2.550%, 11/15/13 | 556,651 | |||||||
1,515,000 | NextEra Energy Capital Holdings, Inc., | |||||||
5.350%, 6/15/13 | 1,529,473 | |||||||
500,000 | NSTAR Electric Co., 4.875%, 4/15/14 | 521,401 | ||||||
1,000,000 | OGE Energy Corp., 5.000%, 11/15/14 | 1,055,746 | ||||||
650,000 | Portland General Electric Co. MTN, | |||||||
144a, 5.625%, 8/1/13 | 659,406 | |||||||
1,000,000 | PPL Energy Supply LLC, | |||||||
5.400%, 8/15/14 | 1,057,507 | |||||||
1,000,000 | PSEG Power LLC, 2.500%, 4/15/13 | 1,000,683 | ||||||
5,000,000 | Scottish Power Ltd., 5.375%, 3/15/15 | 5,326,450 | ||||||
1,265,000 | Sempra Energy, 2.000%, 3/15/14 | 1,280,180 | ||||||
1,000,000 | Sierra Pacific Power Co., | |||||||
5.450%, 9/1/13 | 1,019,659 | |||||||
1,500,000 | Southern California Edison Co., | |||||||
5.750%, 3/15/14 | 1,571,592 | |||||||
2,564,000 | SPI Electricity & Gas Australia Holdings | |||||||
Pty Ltd., 144a, 6.150%, 11/15/13 | 2,625,715 | |||||||
1,675,000 | Westar Energy, Inc., 6.000%, 7/1/14 | 1,782,701 | ||||||
36,343,820 | ||||||||
Energy — 4.7% | ||||||||
1,300,000 | CenterPoint Energy Resources Corp., | |||||||
5.950%, 1/15/14 | 1,353,206 | |||||||
1,100,000 | DCP Midstream LLC, 144a, | |||||||
5.375%, 10/15/15 | 1,195,638 | |||||||
2,200,000 | Enbridge Energy Partners LP, | |||||||
4.750%, 6/1/13 | 2,211,735 | |||||||
2,000,000 | Encana Corp., 4.750%, 10/15/13 | 2,041,064 | ||||||
1,900,000 | Enterprise Products Operating LLC, | |||||||
5.600%, 10/15/14 | 2,036,705 | |||||||
4,500,000 | Petrohawk Energy Corp., | |||||||
7.875%, 6/1/15 | 4,655,079 | |||||||
4,110,000 | Ras Laffan Liquefied Natural Gas Co. | |||||||
Ltd. III, 144a, 5.500%, 9/30/14 | 4,366,875 | |||||||
4,700,000 | Southeast Supply Header LLC, 144a, | |||||||
4.850%, 8/15/14 | 4,915,650 | |||||||
1,215,000 | Spectra Energy Capital LLC, | |||||||
5.500%, 3/1/14 | 1,265,553 | |||||||
900,000 | Spectra Energy Capital LLC, | |||||||
5.668%, 8/15/14 | 957,687 | |||||||
1,950,000 | Spectra Energy Capital LLC, | |||||||
5.900%, 9/15/13 | 1,995,014 | |||||||
1,225,000 | Total Capital Canada Ltd., | |||||||
1.625%, 1/28/14 | 1,237,495 | |||||||
28,231,701 | ||||||||
Consumer Discretionary — 3.3% | ||||||||
940,000 | Comcast Corp., 5.300%, 1/15/14 | 976,012 | ||||||
6,225,000 | Glencore Funding LLC, 144a, | |||||||
6.000%, 4/15/14 | 6,520,607 | |||||||
7,089,000 | Reed Elsevier Capital, Inc., | |||||||
7.750%, 1/15/14 | 7,470,168 | |||||||
4,821,000 | Time Warner Cable, Inc., | |||||||
8.250%, 2/14/14 | 5,128,382 | |||||||
20,095,169 | ||||||||
Consumer Staples — 1.1% | ||||||||
2,500,000 | Andrew W Mellon Foundation, | |||||||
3.950%, 8/1/14 | 2,616,142 | |||||||
1,000,000 | Anheuser-Busch InBev Worldwide, | |||||||
Inc., 0.851%, 1/27/14(A) | 1,003,050 | |||||||
700,000 | Cargill, Inc., 144a, 4.375%, 6/1/13 | 704,363 | ||||||
2,125,000 | Wesfarmers Ltd., 144a, | |||||||
6.998%, 4/10/13 | 2,127,301 | |||||||
6,450,856 |
39 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||||
Amount | Value | |||||||||
Corporate Bonds — 29.4% (Continued) | ||||||||||
Materials — 1.0% | ||||||||||
$ | 1,000,000 | RPM International, Inc., | ||||||||
6.250%, 12/15/13 | $ | 1,034,745 | ||||||||
2,225,000 | Xstrata Canada Corp., 5.375%, 6/1/15 | 2,403,360 | ||||||||
2,575,000 | Xstrata Finance Canada Ltd., 144a, | |||||||||
1.800%, 10/23/15 | 2,604,262 | |||||||||
6,042,367 | ||||||||||
Telecommunication Services — 1.0% | ||||||||||
3,890,000 | America Movil SAB dE CV, | |||||||||
5.500%, 3/1/14 | 4,045,600 | |||||||||
1,940,000 | Verizon Communications, Inc., | |||||||||
5.250%, 4/15/13 | 1,943,160 | |||||||||
5,988,760 | ||||||||||
Health Care — 0.2% | ||||||||||
1,080,000 | CareFusion Corp., 5.125%, 8/1/14 | 1,139,398 | ||||||||
Industrial — 0.2% | ||||||||||
500,000 | CRH America, Inc., 5.300%, 10/15/13 | 511,517 | ||||||||
500,000 | Philips Electronics N.V., | |||||||||
7.250%, 8/15/13 | 511,760 | |||||||||
1,023,277 | ||||||||||
Total Corporate Bonds | $ | 176,493,846 | ||||||||
Asset-Backed Securities — 19.8% | ||||||||||
21,210 | Ally Auto Receivables Trust, Ser | |||||||||
2010-2, Class A3, 1.380%, 7/15/14 | 21,221 | |||||||||
255,407 | Ally Auto Receivables Trust, Ser | |||||||||
2010-3, Class A3, 1.110%, 10/15/14 | 255,730 | |||||||||
282,597 | Ally Auto Receivables Trust, Ser | |||||||||
2010-4, Class A3, 0.910%, 11/17/14 | 282,907 | |||||||||
630,000 | Ally Auto Receivables Trust, Ser | |||||||||
2010-5, Class B, 144a, | ||||||||||
2.450%, 6/15/16 | 646,342 | |||||||||
422,832 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2009-1, Class B, | ||||||||||
9.790%, 4/15/14 | 426,232 | |||||||||
1,455,000 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2009-1, Class C, | ||||||||||
14.550%, 1/15/16 | 1,528,175 | |||||||||
1,192,455 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2010-1, Class B, | ||||||||||
3.720%, 11/17/14 | 1,197,285 | |||||||||
6,675,000 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2010-1, Class C, | ||||||||||
5.190%, 8/17/15 | 6,898,679 | |||||||||
230,639 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2011-5, Class A2, | ||||||||||
1.190%, 8/8/15 | 231,208 | |||||||||
3,000,000 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2011-5, Class C, | ||||||||||
3.440%, 10/8/17 | 3,140,955 | |||||||||
1,325,000 | AmeriCredit Automobile Receivables | |||||||||
Trust, Ser 2012-3, Class B, | ||||||||||
1.590%, 7/10/17 | 1,342,120 | |||||||||
4,624,123 | Ascentium Equipment Receivables | |||||||||
LLC, Ser 2012-1A, Class A, 144a, | ||||||||||
1.830%, 9/15/19 | 4,623,661 | |||||||||
4,738,181 | California Republic Auto Receivables | |||||||||
Trust, Ser 2012-1, Class A, 144a, | ||||||||||
1.180%, 8/15/17 | 4,735,803 | |||||||||
333,136 | Capital Auto Receivables Asset Trust, | |||||||||
Ser 2008-2, Class B, 144a, | ||||||||||
6.460%, 12/15/14 | 334,461 | |||||||||
5,000,000 | Capital Auto Receivables Asset Trust, | |||||||||
Ser 2008-2, Class C, 144a, | ||||||||||
7.960%, 12/15/14 | 5,071,140 | |||||||||
4,215,000 | Capital Auto Receivables Asset Trust, | |||||||||
Ser 2008-2, Class D, 144a, | ||||||||||
8.250%, 12/15/14 | 4,279,574 | |||||||||
462,166 | Capital Auto Receivables Asset Trust, | |||||||||
Ser 2008-A, Class B, 144a, | ||||||||||
6.890%, 1/15/15 | 464,116 | |||||||||
723,424 | CarNow Auto Receivables Trust, Ser | |||||||||
2012-1A, Class A, 144a, | ||||||||||
2.090%, 1/15/15 | 723,672 | |||||||||
1,674,784 | Chrysler Financial Auto Securitization | |||||||||
Trust, Ser 2010-A, Class C, | ||||||||||
2.000%, 1/8/14 | 1,675,375 | |||||||||
800,000 | Citibank Credit Card Issuance Trust, | |||||||||
Ser 2003-A10, Class A10, | ||||||||||
4.750%, 12/10/15 | 824,370 | |||||||||
882,361 | Citigroup Mortgage Loan Trust, Inc., | |||||||||
Ser 2005-WF1, Class A3, | ||||||||||
5.000%, 11/25/34(A) | 890,085 | |||||||||
3,278,148 | Countrywide Asset-Backed | |||||||||
Certificates, Ser 2005-6, Class M1, | ||||||||||
0.694%, 12/25/35(A) | 3,258,944 | |||||||||
158,692 | CPS Auto Receivables Trust, Ser | |||||||||
2010-A, Class A, 144a, | ||||||||||
2.890%, 3/15/16 | 158,985 | |||||||||
1,234,004 | DT Auto Owner Trust, Ser 2012-1A, | |||||||||
Class A, 144a, 1.050%, 1/15/15 | 1,235,246 | |||||||||
783,220 | Entergy Texas Restoration Funding | |||||||||
LLC, Ser 2009-A, Class A1, | ||||||||||
2.120%, 2/1/16 | 795,887 | |||||||||
1,050,000 | Ford Credit Auto Owner Trust, Ser | |||||||||
2010-B, Class B, 2.540%, 2/15/16 | 1,079,730 | |||||||||
144,069 | Honda Auto Receivables Owner Trust, | |||||||||
Ser 2010-3, Class A3, | ||||||||||
0.700%, 4/21/14 | 144,132 | |||||||||
1,200,000 | Honda Auto Receivables Owner Trust, | |||||||||
Ser 2011-3, Class A3, | ||||||||||
0.880%, 9/21/15 | 1,204,984 | |||||||||
844,567 | Hyundai Auto Receivables Trust, Ser | |||||||||
2009-A, Class A4, 3.150%, 3/15/16 | 854,477 | |||||||||
503,513 | LAI Vehicle Lease Securitization Trust, | |||||||||
Ser 2010-A, Class A, 144a, | ||||||||||
2.550%, 9/15/16 | 503,640 | |||||||||
6,650,000 | Madison Avenue Manufactured | |||||||||
Housing Contract, Ser 2002-A, Class | ||||||||||
M2, 2.454%, 3/25/32(A) | 6,687,054 |
40 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 19.8% (Continued) | ||||||||
$ | 59,833 | Mercedes-Benz Auto Receivables | ||||||
Trust, Ser 2010-1, Class A3, | ||||||||
1.420%, 8/15/14 | $ | 59,955 | ||||||
1,758,966 | Montana Higher Education Student | |||||||
Assistance Corp., Ser 2012-1, Class | ||||||||
A1, 0.803%, 9/20/22(A) | 1,767,761 | |||||||
1,169,310 | RAMP Trust, Ser 2003-RZ3, Class A6, | |||||||
3.900%, 3/25/33 | 1,154,383 | |||||||
2,097,173 | Santander Consumer Acquired | |||||||
Receivables Trust, Ser 2011-S1A, | ||||||||
Class B, 144a, 1.660%, 8/15/16 | 2,110,953 | |||||||
2,350,000 | Santander Consumer Acquired | |||||||
Receivables Trust, Ser 2011-WO, | ||||||||
Class B, 144a, 2.320%, 4/15/15 | 2,371,195 | |||||||
2,564,248 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2010-2, Class B, | ||||||||
2.240%, 12/15/14 | 2,576,041 | |||||||
3,875,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2010-2, Class C, | ||||||||
3.890%, 7/17/17 | 3,996,938 | |||||||
2,879,210 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2010-3, Class B, | ||||||||
2.050%, 5/15/15 | 2,890,813 | |||||||
4,700,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2010-3, Class C, | ||||||||
3.060%, 11/15/17 | 4,850,198 | |||||||
5,000,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2010-B, Class C, 144a, | ||||||||
3.020%, 10/17/16 | 5,077,855 | |||||||
2,530,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2011-3, Class C, | ||||||||
3.090%, 5/15/17 | 2,606,937 | |||||||
2,465,196 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2011-S1A, Class B, 144a, | ||||||||
1.480%, 5/15/17 | 2,475,486 | |||||||
1,983,884 | Sierra Receivables Funding Co. LLC, | |||||||
Ser 2011-1A, Class A, 144a, | ||||||||
3.350%, 4/20/26 | 2,064,035 | |||||||
5,730,567 | Sierra Receivables Funding Co. LLC, | |||||||
Ser 2011-2A, Class A, 144a, | ||||||||
3.260%, 5/20/28 | 5,888,078 | |||||||
2,144,961 | Sierra Receivables Funding Co. LLC, | |||||||
Ser 2012-1A, Class A, 144a, | ||||||||
2.840%, 11/20/28 | 2,202,583 | |||||||
1,900,730 | SNAAC Auto Receivables Trust, Ser | |||||||
2012-1A, Class A, 144a, | ||||||||
1.780%, 6/15/16 | 1,911,592 | |||||||
5,750,000 | Tidewater Auto Receivables Trust, Ser | |||||||
2012-AA, Class A2, 144a, | ||||||||
1.210%, 8/15/15 | 5,749,920 | |||||||
174,228 | Toyota Auto Receivables Owner Trust, | |||||||
Ser 2010-C, Class A3, | ||||||||
0.770%, 4/15/14 | 174,309 | |||||||
1,750,000 | United Auto Credit Securitization | |||||||
Trust, Ser 2012-1, Class A2, 144a, | ||||||||
1.100%, 3/16/15 | 1,750,369 | |||||||
295,000 | Vanderbilt Mortgage Finance, Ser | |||||||
2001-C, Class A4, 5.960%, 1/7/27 | 302,651 | |||||||
1,675,000 | Volkswagen Auto Lease Trust, Ser | |||||||
2012-A, Class A3, 0.870%, 7/20/15 | 1,682,266 | |||||||
1,000,000 | Volkswagen Auto Loan Enhanced | |||||||
Trust, Ser 2012-1, Class A3, | ||||||||
0.850%, 8/22/16 | 1,004,752 | |||||||
22,970 | Wells Fargo Home Equity Trust, Ser | |||||||
2006-1, Class A3, 0.354%, 5/25/36(A) | 22,958 | |||||||
4,854,461 | Westgate Resorts LLC, Ser 2012-2A, | |||||||
Class A, 144a, 3.000%, 1/20/25 | 4,895,423 | |||||||
4,167,376 | Westgate Resorts LLC, Ser 2012-3A, | |||||||
Class A, 144a, 2.500%, 3/20/25 | 4,172,585 | |||||||
Total Asset-Backed Securities | $ | 119,276,226 | ||||||
Commercial Mortgage-Backed Securities — 19.7% | ||||||||
164,497 | Banc of America Commercial | |||||||
Mortgage Trust, Ser 2006-2, Class | ||||||||
A2, 5.713%, 5/10/45 | 164,450 | |||||||
7,445,341 | Banc of America Commercial | |||||||
Mortgage Trust, Ser 2007-1, Class | ||||||||
A3, 5.449%, 1/15/49 | 7,614,745 | |||||||
3,961,421 | Banc of America Commercial | |||||||
Mortgage Trust, Ser 2007-2, Class | ||||||||
A2, 5.619%, 4/10/49(A) | 4,033,764 | |||||||
100,221 | Banc of America Commercial | |||||||
Mortgage Trust, Ser 2007-5, Class | ||||||||
A2, 5.434%, 2/10/51 | 100,114 | |||||||
2,933,904 | Banc of America Large Loan Trust, Ser | |||||||
2007-BMB1, Class A2, 144a, | ||||||||
0.953%, 8/15/29(A) | 2,890,229 | |||||||
777,000 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2004-4, Class A6, 4.877%, 7/10/42(A) | 808,687 | |||||||
661,614 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2004-6, Class A3, 4.512%, 12/10/42 | 667,011 | |||||||
244,975 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2005-3, Class ASB, 4.589%, 7/10/43 | 250,902 | |||||||
1,931,954 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2005-4, Class ASB, 4.867%, 7/10/45 | 1,988,155 | |||||||
3,133,000 | Banc of America Re-Remic Trust, Ser | |||||||
2012-CLRN, Class B, 144a, | ||||||||
1.803%, 8/15/29(A) | 3,170,699 | |||||||
2,367,000 | Banc of America Re-Remic Trust, Ser | |||||||
2012-CLRN, Class C, 144a, | ||||||||
2.303%, 8/15/29(A) | 2,405,648 |
41 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Commercial Mortgage-Backed Securities — 19.7% | ||||||||
(Continued) | ||||||||
$ | 1,333,542 | Bear Stearns Commercial Mortgage | ||||||
Securities, Ser 2000-WF2, Class E, | ||||||||
8.050%, 10/15/32(A)†† | $ | 1,379,465 | ||||||
1,467,627 | Bear Stearns Commercial Mortgage | |||||||
Securities, Ser 2004-T14, Class A4, | ||||||||
5.200%, 1/12/41(A)†† | 1,509,555 | |||||||
209,131 | Bear Stearns Commercial Mortgage | |||||||
Securities, Ser 2007-T26, Class A2, | ||||||||
5.330%, 1/12/45†† | 209,082 | |||||||
1,870,281 | Bear Stearns Commercial Mortgage | |||||||
Securities Trust, Ser 2007-T28, Class | ||||||||
AAB, 5.746%, 9/11/42 | 1,998,148 | |||||||
2,200,000 | CDC Commercial Mortgage Trust, Ser | |||||||
2002-FX1, Class D, 6.005%, 5/15/35 | 2,206,006 | |||||||
3,375,000 | COMM 2004-LNB3 Mortgage Trust, | |||||||
Ser 2004-LB3A, Class B, | ||||||||
5.354%, 7/10/37(A) | 3,523,557 | |||||||
5,785,000 | COMM 2006-FL12 Mortgage Trust, Ser | |||||||
2006-FL12, Class AJ, 144a, | ||||||||
0.333%, 12/15/20(A) | 5,543,505 | |||||||
4,660,134 | COMM 2007-FL14 Mortgage Trust, Ser | |||||||
2007-FL14, Class AJ, 144a, | ||||||||
0.383%, 6/15/22(A) | 4,591,620 | |||||||
531,046 | Commercial Mortgage Asset Trust, Ser | |||||||
1999-C1, Class A4, | ||||||||
6.975%, 1/17/32(A) | 532,120 | |||||||
5,700,000 | Commercial Mortgage Pass Through | |||||||
Certificates, Ser 2012-FL2, Class A, | ||||||||
144a, 2.331%, 9/17/29(A) | 5,790,339 | |||||||
170,806 | Commercial Mortgage Pass-Through | |||||||
Certificates, Ser 2007-C2, Class A2, | ||||||||
5.448%, 1/15/49(A) | 171,806 | |||||||
520,397 | Commercial Mortgage Pass-Through | |||||||
Certificates, Ser 2007-C5, Class A2, | ||||||||
5.589%, 9/15/40 | 519,318 | |||||||
517,197 | Credit Suisse First Boston Mortgage | |||||||
Securities Corp., Ser 1998-C2, Class | ||||||||
D, 7.130%, 11/15/30 | 518,230 | |||||||
350,916 | Credit Suisse First Boston Mortgage | |||||||
Securities Corp., Ser 2003-C4, Class | ||||||||
A4, 5.137%, 8/15/36(A) | 352,569 | |||||||
4,500,000 | Credit Suisse First Boston Mortgage | |||||||
Securities Corp., Ser 2003-C4, Class | ||||||||
B, 5.253%, 8/15/36(A) | 4,554,598 | |||||||
193,301 | Credit Suisse First Boston Mortgage | |||||||
Securities Corp., Ser 2005-C5, Class | ||||||||
A3, 5.100%, 8/15/38(A) | 194,245 | |||||||
2,172,143 | DBUBS Mortgage Trust, Ser | |||||||
2011-LC2A, Class A1FL, 144a, | ||||||||
1.552%, 7/12/44(A) | 2,238,226 | |||||||
6,139,000 | GMAC Commercial Mortgage | |||||||
Securities, Inc., Ser 2003-C2, Class D, | ||||||||
5.466%, 5/10/40(A) | 6,220,262 | |||||||
148,611 | GMAC Commercial Mortgage | |||||||
Securities, Inc., Ser 2004-C3, Class | ||||||||
A4, 4.547%, 12/10/41 | 149,043 | |||||||
350,307 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2004-LN2, Class A1, | ||||||||
4.475%, 7/15/41 | 350,633 | |||||||
964,772 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2005-CB12, Class A3A2, | ||||||||
4.928%, 9/12/37 | 969,555 | |||||||
169,415 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2005-LDP2, Class A3A, | ||||||||
4.678%, 7/15/42 | 170,878 | |||||||
1,249,434 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Corp., Ser | ||||||||
2005-LDP4, Class A3A2, | ||||||||
4.903%, 10/15/42 | 1,248,896 | |||||||
54,198 | LB Commercial Mortgage Trust, Ser | |||||||
2007-C3, Class A2, | ||||||||
5.840%, 7/15/44(A) | 54,300 | |||||||
2,000,000 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2003-C8, Class C, | ||||||||
5.207%, 9/15/37(A) | 2,039,324 | |||||||
2,000,000 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2003-C8, Class D, | ||||||||
5.237%, 9/15/37(A) | 2,038,768 | |||||||
559,000 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2004-C2, Class A4, | ||||||||
4.367%, 3/15/36 | 573,795 | |||||||
86,897 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2005-C7, Class A2, | ||||||||
5.103%, 11/15/30 | 87,311 | |||||||
274,591 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2005-C7, Class AAB, | ||||||||
5.170%, 11/15/30 | 283,058 | |||||||
5,977,496 | Merrill Lynch Floating Trust, Ser | |||||||
2008-LAQA, Class A1, 144a, | ||||||||
0.738%, 7/9/21(A) | 5,885,234 | |||||||
4,500,000 | Merrill Lynch Floating Trust, Ser | |||||||
2008-LAQA, Class A2, 144a, | ||||||||
0.738%, 7/9/21(A) | 4,446,770 | |||||||
7,115,000 | Merrill Lynch Mortgage Trust, Ser | |||||||
2003-KEY1, Class C, | ||||||||
5.373%, 11/12/35(A) | 7,257,513 | |||||||
80,034 | Merrill Lynch/Countrywide | |||||||
Commercial Mortgage Trust, Ser | ||||||||
2006-2, Class A2, 5.878%, 6/12/46(A) | 80,061 | |||||||
3,688,153 | Merrill Lynch/Countrywide | |||||||
Commercial Mortgage Trust, Ser | ||||||||
2007-5, Class A3, 5.364%, 8/12/48 | 3,758,434 |
42 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Commercial Mortgage-Backed Securities — 19.7% (Continued) | ||||||||
$ | 2,562,447 | Morgan Stanley Capital I Trust, Ser | ||||||
2007-IQ15, Class A2, | ||||||||
5.849%, 6/11/49(A) | $ | 2,606,785 | ||||||
65,002 | Morgan Stanley Dean Witter Capital I, | |||||||
Ser 2001-TOP3, Class A4, | ||||||||
6.390%, 7/15/33 | 65,036 | |||||||
2,568,505 | PNC Mortgage Acceptance Corp., Ser | |||||||
2001-C1, Class F, 144a, | ||||||||
7.153%, 3/12/34(A) | 2,605,946 | |||||||
5,000,000 | TIAA CMBS I Trust, Ser 2001-C1A, Class | |||||||
H, 144a, 5.770%, 6/19/33 | 5,127,300 | |||||||
6,172,459 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2003-C7, Class A2, 144a, | ||||||||
5.077%, 10/15/35(A) | 6,243,770 | |||||||
1,386,271 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2003-C9, Class A4, | ||||||||
5.012%, 12/15/35(A) | 1,409,594 | |||||||
83,092 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2004-C11, Class A4, | ||||||||
5.030%, 1/15/41 | 83,220 | |||||||
1,769,177 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2005-C17, Class APB, | ||||||||
5.037%, 3/15/42 | 1,782,115 | |||||||
812,097 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2005-C20, Class APB, | ||||||||
5.090%, 7/15/42(A) | 821,130 | |||||||
1,893,429 | Wachovia Bank Commercial Mortgage | |||||||
Trust, Ser 2007-C30, Class A3, | ||||||||
5.246%, 12/15/43 | 1,950,223 | |||||||
Total Commercial Mortgage-Backed Securities | $ | 118,235,747 | ||||||
U.S. Government Mortgage-Backed Obligations — 13.9% | ||||||||
521,405 | FHLMC, Pool #1B1580, | |||||||
2.802%, 3/1/34(A) | 551,412 | |||||||
264,458 | FHLMC, Pool #1B2629, | |||||||
2.750%, 11/1/34(A) | 283,130 | |||||||
1,143,413 | FHLMC, Pool #1B7189, | |||||||
3.460%, 3/1/36(A) | 1,224,184 | |||||||
391,559 | FHLMC, Pool #1G1471, | |||||||
2.600%, 1/1/37(A) | 417,066 | |||||||
1,862,835 | FHLMC, Pool #1H1354, | |||||||
5.887%, 11/1/36(A) | 2,010,225 | |||||||
221,774 | FHLMC, Pool #1H2524, | |||||||
2.393%, 8/1/35(A) | 236,758 | |||||||
694,120 | FHLMC, Pool #1J1813, | |||||||
3.050%, 8/1/37(A) | 743,860 | |||||||
670,867 | FHLMC, Pool #1K1238, | |||||||
2.375%, 7/1/36(A) | 710,747 | |||||||
440,827 | FHLMC, Pool #1L0087, | |||||||
2.375%, 6/1/35(A) | 471,160 | |||||||
623,664 | FHLMC, Pool #1L0147, | |||||||
2.415%, 7/1/35(A) | 660,744 | |||||||
560,920 | FHLMC, Pool #1L1288, | |||||||
2.378%, 5/1/36(A) | 598,760 | |||||||
515,243 | FHLMC, Pool #1Q0080, | |||||||
2.786%, 1/1/36(A) | 553,055 | |||||||
1,001,020 | FHLMC, Pool #1Q0119, | |||||||
2.940%, 9/1/36(A) | 1,072,033 | |||||||
1,833,982 | FHLMC, Pool #1Q0187, | |||||||
2.868%, 12/1/36(A) | 1,967,049 | |||||||
981,011 | FHLMC, Pool #1Q0339, | |||||||
2.863%, 4/1/37(A) | 1,052,741 | |||||||
404,823 | FHLMC, Pool #1Q0669, | |||||||
2.762%, 11/1/37(A) | 432,124 | |||||||
1,550,179 | FHLMC, Pool #1Q1303, | |||||||
4.751%, 11/1/36(A) | 1,676,620 | |||||||
1,728,871 | FHLMC, Pool #781515, | |||||||
2.375%, 4/1/34(A) | 1,834,167 | |||||||
768,724 | FHLMC, Pool #782760, | |||||||
6.101%, 11/1/36(A) | 826,832 | |||||||
507,730 | FHLMC, Pool #847795, | |||||||
2.432%, 4/1/35(A) | 540,511 | |||||||
370,333 | FHLMC, Pool #848088, | |||||||
2.412%, 4/1/35(A) | 396,876 | |||||||
1,910,455 | FHLMC, Pool #848539, | |||||||
5.150%, 4/1/37(A) | 2,061,666 | |||||||
2,793,711 | FHLMC, Pool #848583, | |||||||
2.437%, 1/1/36(A) | 2,966,508 | |||||||
42,362 | FHLMC, Pool #A92646, 5.500%, 6/1/40 | 47,362 | ||||||
49,717 | FHLMC, Pool #C03505, 5.500%, 6/1/40 | 53,960 | ||||||
42,995 | FHLMC, Pool #G11072, | |||||||
7.500%, 12/1/15 | 45,037 | |||||||
2,987,169 | FHLMC, Pool #G11769, | |||||||
5.000%, 10/1/20 | 3,209,087 | |||||||
1,907,669 | FHLMC, Pool #G11773, | |||||||
5.000%, 10/1/20 | 2,049,695 | |||||||
977,986 | FHLMC, Pool #J10895, | |||||||
4.000%, 10/1/19 | 1,040,324 | |||||||
587,095 | FNMA, Pool #254868, 5.000%, 9/1/33 | 639,725 | ||||||
14,790 | FNMA, Pool #519992, 7.000%, 10/1/14 | 15,265 | ||||||
10,653 | FNMA, Pool #534851, 7.500%, 4/1/15 | 11,032 | ||||||
14,798 | FNMA, Pool #535219, 7.500%, 3/1/15 | 15,362 | ||||||
444,960 | FNMA, Pool #555380, | |||||||
2.493%, 4/1/33(A) | 472,594 | |||||||
74,642 | FNMA, Pool #555646, 7.500%, 9/1/16 | 77,893 | ||||||
579,901 | FNMA, Pool #679742, | |||||||
2.839%, 1/1/40(A) | 618,299 | |||||||
153,820 | FNMA, Pool #681842, | |||||||
2.357%, 2/1/33(A) | 163,962 | |||||||
480,703 | FNMA, Pool #681898, | |||||||
2.261%, 4/1/33(A) | 513,706 | |||||||
486,978 | FNMA, Pool #725245, | |||||||
2.316%, 2/1/34(A) | 519,881 | |||||||
2,432,375 | FNMA, Pool #725490, | |||||||
2.749%, 4/1/34(A) | 2,559,944 | |||||||
1,329,003 | FNMA, Pool #735439, 6.000%, 9/1/19 | 1,422,987 | ||||||
287,816 | FNMA, Pool #735539, | |||||||
2.378%, 4/1/35(A) | 306,836 | |||||||
200,735 | FNMA, Pool #743207, | |||||||
2.602%, 10/1/33(A) | 213,043 |
43 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed Obligations — 13.9% (Continued) | ||||||||
$ | 163,350 | FNMA, Pool #745467, | ||||||
2.811%, 4/1/36(A) | $ | 174,699 | ||||||
375,654 | FNMA, Pool #745790, | |||||||
2.536%, 8/1/36(A) | 401,943 | |||||||
2,122,617 | FNMA, Pool #761411, 4.500%, 5/1/19 | 2,287,690 | ||||||
281,033 | FNMA, Pool #784365, | |||||||
2.232%, 5/1/34(A) | 297,506 | |||||||
579,221 | FNMA, Pool #791978, | |||||||
2.017%, 9/1/34(A) | 610,376 | |||||||
211,824 | FNMA, Pool #804001, | |||||||
2.368%, 10/1/34(A) | 226,466 | |||||||
414,114 | FNMA, Pool #806765, | |||||||
2.207%, 11/1/34(A) | 440,207 | |||||||
161,123 | FNMA, Pool #809897, | |||||||
2.469%, 3/1/35(A) | 172,434 | |||||||
804,590 | FNMA, Pool #810896, | |||||||
2.115%, 1/1/35(A) | 854,938 | |||||||
386,548 | FNMA, Pool #813170, | |||||||
2.487%, 1/1/35(A) | 410,685 | |||||||
683,518 | FNMA, Pool #813714, | |||||||
2.108%, 1/1/35(A) | 727,125 | |||||||
3,384,546 | FNMA, Pool #813844, | |||||||
2.067%, 1/1/35(A) | 3,598,908 | |||||||
495,165 | FNMA, Pool #820364, | |||||||
2.255%, 4/1/35(A) | 526,098 | |||||||
2,243,950 | FNMA, Pool #825395, | |||||||
2.347%, 7/1/35(A) | 2,401,087 | |||||||
1,516,702 | FNMA, Pool #827787, | |||||||
2.231%, 5/1/35(A) | 1,608,636 | |||||||
210,844 | FNMA, Pool #828480, | |||||||
2.852%, 6/1/35(A) | 224,674 | |||||||
627,141 | FNMA, Pool #839239, | |||||||
2.885%, 9/1/35(A) | 668,162 | |||||||
247,543 | FNMA, Pool #888179, | |||||||
2.742%, 2/1/37(A) | 265,740 | |||||||
150,724 | FNMA, Pool #888548, | |||||||
2.386%, 5/1/35(A) | 160,368 | |||||||
472,812 | FNMA, Pool #889060, 6.000%, 1/1/38 | 528,304 | ||||||
415,815 | FNMA, Pool #889061, 6.000%, 1/1/38 | 467,709 | ||||||
25,332 | FNMA, Pool #889382, 5.500%, 4/1/38 | 28,517 | ||||||
1,091,935 | FNMA, Pool #922674, | |||||||
2.842%, 4/1/36(A) | 1,173,221 | |||||||
1,449,065 | FNMA, Pool #931676, 5.500%, 1/1/19 | 1,586,712 | ||||||
269,984 | FNMA, Pool #950385, | |||||||
1.456%, 8/1/37(A) | 288,063 | |||||||
445,828 | FNMA, Pool #995284, 5.500%, 3/1/20 | 477,867 | ||||||
2,083,270 | FNMA, Pool #AA1150, 4.000%, 4/1/23 | 2,224,760 | ||||||
503,177 | FNMA, Pool #AB1827, 3.500%, 11/1/20 | 533,597 | ||||||
1,089,266 | FNMA, Pool #AB1981, 3.500%, 12/1/20 | 1,157,840 | ||||||
22,983 | FNMA, Pool #AD0941, 5.500%, 4/1/40 | 26,045 | ||||||
1,778,610 | FNMA, Pool #AE0727, 4.000%, 10/1/20 | 1,894,578 | ||||||
372,428 | FNMA, Pool #AE5441, 5.000%, 10/1/40 | 415,242 | ||||||
1,007,747 | FNMA, Pool #AI3780, 3.500%, 8/1/20 | 1,068,670 | ||||||
534,472 | FNMA, Pool #AI6588, 4.000%, 7/1/26 | 572,191 | ||||||
471,340 | FNMA, Pool #AI8506, 4.000%, 8/1/26 | 504,603 | ||||||
497,440 | FNMA, Pool #AL0211, 5.000%, 4/1/41 | 554,624 | ||||||
2,564,847 | FNMA, Pool #AL0478, | |||||||
2.844%, 4/1/36(A) | 2,738,155 | |||||||
942,019 | FNMA, Pool #AL0543, 5.000%, 7/1/41 | 1,038,831 | ||||||
1,258,380 | FNMA, Pool #MA0174, 4.000%, 9/1/19 | 1,346,793 | ||||||
716,369 | FNMA, Pool #MA0464, 3.500%, 6/1/20 | 759,677 | ||||||
836,911 | FNMA, Pool #MA0629, 3.500%, 1/1/21 | 890,126 | ||||||
3,554,041 | FNMA, Pool #MA0740, 3.500%, 5/1/21 | 3,776,114 | ||||||
972,273 | GNMA, Pool #80826, | |||||||
1.625%, 2/20/34(A) | 1,022,890 | |||||||
625,203 | GNMA, Pool #80889, | |||||||
1.750%, 4/20/34(A) | 657,129 | |||||||
894,776 | GNMA, Pool #81016, | |||||||
1.750%, 8/20/34(A) | 939,870 | |||||||
38,637,378 | GNMA, Ser 2009-114, Class IO, | |||||||
1.386%, 10/16/49(A) | 2,147,697 | |||||||
17,723,300 | GNMA, Ser 2011-78, Class IX, | |||||||
1.244%, 8/16/46(A) | 1,270,548 | |||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 83,432,337 | ||||||
Commercial Paper — 8.7% | ||||||||
8,000,000 | AGL Capital Corp. | 7,999,778 | ||||||
4,000,000 | AGL Capital Corp. | 3,997,824 | ||||||
7,000,000 | Enbridge Energy Partners | 6,999,660 | ||||||
10,000,000 | Kansas City Power & Light Co. | 9,999,722 | ||||||
10,000,000 | Kroger Co./The | 9,999,722 | ||||||
8,000,000 | OGE Energy Corp. | 7,999,550 | ||||||
4,000,000 | Spectra Energy Partners | 3,999,743 | ||||||
1,214,000 | Spectra Energy Partners | 1,213,910 | ||||||
Total Commercial Paper | $ | 52,209,909 | ||||||
Municipal Bonds — 3.8% | ||||||||
Kentucky— 0.5% | ||||||||
3,000,000 | KY St Econ Dev Fin Auth, Ref Amt | |||||||
Republic Svcs A, 0.500%, 4/1/31(A) | 2,999,940 | |||||||
Louisiana— 0.0% | ||||||||
217,437 | LA St Local Govt Envrnm, Ell Tranche A | |||||||
1, 1.110%, 2/1/16 | 218,235 | |||||||
Massachusetts— 0.2% | ||||||||
1,000,000 | MA St Dev Fin Agy R, Waste | |||||||
Management Inc Pj Ser B, 2.125%, | ||||||||
12/1/29 | 1,030,260 | |||||||
New Jersey— 0.3% | ||||||||
2,000,000 | NJ St Econ Dev Auth Re, Sch Facs | |||||||
Constr, 0.857%, 3/1/15 | 1,999,880 | |||||||
New Mexico— 0.1% | ||||||||
665,000 | NM St Edl Assistan, Libor Fltg Ser A 2, | |||||||
0.934%, 12/1/28(A) | 665,206 | |||||||
Ohio— 0.5% | ||||||||
500,000 | American Muni Pwr-Ohio, Inc. OH, | |||||||
Hydroelec Pjs Ser A, 3.944%, | ||||||||
2/15/15 | 525,435 |
44 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Municipal Bonds — 3.8% (Continued) | ||||||||
Ohio — 0.5% (Continued) | ||||||||
$ | 950,000 | Columbus OH, Recovery Zone | ||||||
Economic Dev Tax, LTGO, 2.890%, | ||||||||
6/1/15 | $ | 976,534 | ||||||
1,510,000 | Medina Co OH IDR, Adj Mack Inds | |||||||
Proj, (LOC: JP Morgan Chase Bank | ||||||||
NA), 0.270%, 7/1/16 | 1,510,000 | |||||||
3,011,969 | ||||||||
Pennsylvania— 0.4% | ||||||||
2,500,000 | PA St Econ Dev Fing, Waste Mgmt Proj, | |||||||
1.750%, 12/1/33 | 2,564,400 | |||||||
South Carolina— 0.8% | ||||||||
5,000,000 | SC St Public Svc A, Ser A, 0.704%, | |||||||
7/1/13(A) | 5,003,500 | |||||||
Texas— 1.0% | ||||||||
2,250,000 | N TX Tollway Auth Rev, BANS Spl Pjs A, | |||||||
Revenue Notes, 2.441%, 9/1/13 | 2,267,078 | |||||||
625,000 | TX St, Amt Ref College Student Ln B, | |||||||
UTGO, 5.000%, 8/1/14 | 660,969 | |||||||
1,000,000 | TX St Muni Gas Acquisition, 5.000%, | |||||||
12/15/14 | 1,070,760 | |||||||
1,500,000 | TX St Muni Gas Acquisition, 5.000%, | |||||||
12/15/15 | 1,649,700 | |||||||
5,648,507 | ||||||||
Total Municipal Bonds | $ | 23,141,897 | ||||||
Agency Collateralized Mortgage Obligations — 3.1% | ||||||||
142,031 | Fannie Mae REMIC Trust, Ser 2001-W4, | |||||||
Class AF5, 6.114%, 2/25/32 | 147,630 | |||||||
60,600,000 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K502 Class | ||||||||
X1A, 1.856%, 4/25/17(A) | 3,463,654 | |||||||
40,511 | FHLMC REMIC, Ser 2571 Class FN, | |||||||
0.853%, 8/15/32(A) | 40,521 | |||||||
175,448 | FHLMC REMIC, Ser 2639 Class JE, | |||||||
5.000%, 1/15/32 | 176,822 | |||||||
1,168,126 | FHLMC REMIC, Ser 2770 Class FH, | |||||||
0.603%, 3/15/34(A) | 1,171,829 | |||||||
956,868 | FHLMC REMIC, Ser 2778 Class BR, | |||||||
5.000%, 6/15/33 | 984,444 | |||||||
172,825 | FHLMC REMIC, Ser 2904 Class CA, | |||||||
5.000%, 4/15/19 | 176,359 | |||||||
292,360 | FHLMC REMIC, Ser 2977 Class NY, | |||||||
5.500%, 5/15/33 | 298,435 | |||||||
467,759 | FHLMC REMIC, Ser 3010 Class WA, | |||||||
4.500%, 3/15/19 | 473,897 | |||||||
139,904 | FHLMC REMIC, Ser 3104 Class BA, | |||||||
5.500%, 6/15/24 | 142,124 | |||||||
736,038 | FHLMC REMIC, Ser 3414 Class MB, | |||||||
4.250%, 12/15/19 | 778,193 | |||||||
509,179 | FNMA REMIC, Ser 2003-119, Class PU, | |||||||
4.000%, 11/25/33 | 529,537 | |||||||
234,965 | FNMA REMIC, Ser 2003-33, Class AM, | |||||||
4.250%, 5/25/33 | 257,643 | |||||||
1,149,436 | FNMA REMIC, Ser 2003-81, Class FE, | |||||||
0.704%, 9/25/33(A) | 1,158,335 | |||||||
818,560 | FNMA REMIC, Ser 2008-35, Class IO, | |||||||
4.500%, 4/25/23 | 54,490 | |||||||
2,308,470 | FNMA REMIC, Ser 2009-80, Class EJ, | |||||||
4.500%, 3/25/27 | 2,366,605 | |||||||
783,633 | FNMA REMIC, Ser 2010-54, Class NA, | |||||||
4.500%, 10/25/39 | 806,660 | |||||||
3,803,176 | FNMA REMIC, Ser 2010-75, Class CH, | |||||||
4.500%, 5/25/37 | 3,824,960 | |||||||
758,248 | FNMA REMIC, Ser 2011-52, Class AH, | |||||||
2.750%, 10/25/18 | 783,572 | |||||||
569,694 | Freddie Mac Reference REMIC, Ser | |||||||
R004 Class VG, 6.000%, 8/15/21 | 573,957 | |||||||
573,506 | GNMA, Ser 2010-18, Class A, | |||||||
3.100%, 12/16/50 | 591,544 | |||||||
Total Agency Collateralized Mortgage Obligations | $ | 18,801,211 | ||||||
Non-Agency Collateralized Mortgage Obligations — 2.8% | ||||||||
376,311 | American Home Mortgage | |||||||
Investment Trust, Ser 2005-2, Class | ||||||||
5A3, 5.077%, 9/25/35 | 382,945 | |||||||
902,140 | Bear Stearns ARM Trust, Ser 2004-1, | |||||||
Class 13A3, 2.930%, 4/25/34(A)†† | 904,885 | |||||||
526,184 | Bear Stearns Asset Backed Securities | |||||||
Trust, Ser 2003-AC7, Class A2, | ||||||||
5.750%, 1/25/34(B) | 547,445 | |||||||
606,422 | FDIC Structured Sale Guaranteed | |||||||
Notes, Ser 2010-S1, Class 2A, 144a, | ||||||||
3.250%, 4/25/38 | 640,344 | |||||||
23,482 | JP Morgan Alternative Loan Trust, Ser | |||||||
2006-S2, Class A2, 5.810%, 5/25/36 | 23,425 | |||||||
35,660 | JP Morgan Mortgage Trust, Ser | |||||||
2005-A2, Class 5A1, | ||||||||
4.243%, 4/25/35(A) | 35,817 | |||||||
133,705 | JP Morgan Mortgage Trust, Ser | |||||||
2005-A3, Class 11A1, | ||||||||
4.386%, 6/25/35(A) | 134,070 | |||||||
414,708 | JP Morgan Mortgage Trust, Ser | |||||||
2006-A4, Class 2A2, | ||||||||
4.988%, 6/25/36(A) | 372,991 | |||||||
664,101 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser MLCC 2004-1, Class 1A, | ||||||||
2.412%, 12/25/34(A) | 656,797 | |||||||
51,265 | Merrill Lynch Mortgage Investors, Inc., | |||||||
Ser 2003-A1, Class 2A, | ||||||||
2.402%, 12/25/32(A) | 52,835 | |||||||
779,549 | PHH Mortgage Capital LLC, Ser | |||||||
2008-CIM2, Class 5A1, | ||||||||
6.000%, 7/25/38 | 802,933 |
45 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Non-Agency Collateralized Mortgage Obligations — 2.8% (Continued) | ||||||||
$ | 824,311 | Provident Funding Mortgage Loan | ||||||
Trust, Ser 2005-2, Class 2A1A, | ||||||||
2.936%, 10/25/35(A) | $ | 816,640 | ||||||
441,841 | RALI Trust, Ser 2003-QS10, Class A7, | |||||||
5.500%, 5/25/33 | 460,283 | |||||||
1,709,576 | RFMSI Trust, Ser 2007-SA1, Class 1A1, | |||||||
3.273%, 2/25/37(A) | 1,500,775 | |||||||
3,858,532 | Springleaf Mortgage Loan Trust, Ser | |||||||
2012-2A, Class A, 144a, | ||||||||
2.220%, 10/25/57(A) | 3,909,851 | |||||||
3,611,077 | Springleaf Mortgage Loan Trust, Ser | |||||||
2012-3A, Class A, 144a, | ||||||||
1.570%, 12/25/59(A) | 3,622,358 | |||||||
83,405 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-13, Class | ||||||||
A5, 4.500%, 11/25/18 | 83,469 | |||||||
471,904 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-G, Class | ||||||||
A1, 4.100%, 6/25/33(A) | 476,546 | |||||||
1,323,653 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-M, Class | ||||||||
A1, 4.683%, 12/25/33(A) | 1,359,225 | |||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 16,783,634 | ||||||
U.S. Government Agency Obligations — 0.8% | ||||||||
2,000,000 | Overseas Private Investment Corp., | |||||||
0.000%, 11/18/13# | 2,032,420 | |||||||
2,800,000 | Overseas Private Investment Corp., | |||||||
0.150%, 3/15/17(A) | 2,800,002 | |||||||
Total U.S. Government Agency Obligations | $ | 4,832,422 | ||||||
Shares | ||||||||
Investment Fund — 0.0% | ||||||||
146,120 | Touchstone Institutional Money Market Fund^ | 146,120 | ||||||
Total Investment Securities —102.0% | ||||||||
(Cost $612,121,195) | $ | 613,353,349 | ||||||
Liabilities in Excess of Other Assets — (2.0%) | (12,057,670 | ) | ||||||
Net Assets — 100.0% | $ | 601,295,679 |
(A) | Variable rate security - the rate reflected is the rate in effect as of March 31, 2013. |
(B) | Step Bond. A bond that pays an initial interest rate for the first period and then a higher interest rate for the following periods until maturity. The interest rate shown reflects the rate in effect at March 31, 2013. |
# | Zero coupon bond. Rate shown reflects effective yield to maturity at time of purchase. |
^ Affiliated Fund. See Note 4 in Notes to Financial Statements.
†† | 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 and publicly traded. The Fund receives principal and interest payments directly from these trusts. |
Portfolio Abbreviations:
ARM - Adjustable Rate Mortgage
BANS - Bond Anticipation Notes
FDIC - Federal Deposit Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
IDR - Industrial Development Revenue
LOC - Letter of Credit
LTD - Limited Liability Company
LTGO - Limited Tax General Obligation
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 31,2013, these securities were valued at $159,233,552 or 26.5% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
46 |
Touchstone Ultra Short Duration Fixed Income Fund
March 31, 2013 (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 | $ | — | $ | 176,493,846 | $ | — | $ | 176,493,846 | ||||||||
Asset-Backed Securities | — | 119,276,226 | — | 119,276,226 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 118,235,747 | — | 118,235,747 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 83,432,337 | — | 83,432,337 | ||||||||||||
Commercial Paper | — | 52,209,909 | — | 52,209,909 | ||||||||||||
Municipal Bonds | — | 23,141,897 | — | 23,141,897 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 18,801,211 | — | 18,801,211 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 16,783,634 | — | 16,783,634 | ||||||||||||
U.S. Government Agency Obligations | — | 4,832,422 | — | 4,832,422 | ||||||||||||
Investment Fund | 146,120 | — | — | 146,120 | ||||||||||||
$ | 613,353,349 |
See accompanying Notes to Financial Statements.
47 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited)
Touchstone | ||||||||||||||||
Emerging | Touchstone | Touchstone | Touchstone | |||||||||||||
Markets | Focused | Global | International | |||||||||||||
Equity | Equity | Real Estate | Fixed Income | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 526,004,379 | $ | 147,935,605 | $ | 20,329,877 | $ | 29,014,392 | ||||||||
Affiliated securities, at market value | $ | 10,750,610 | $ | 7,455,749 | $ | 206,438 | $ | 550,506 | ||||||||
Non-affiliated securities, at market value | 539,827,299 | 154,384,076 | 22,108,462 | 28,389,938 | ||||||||||||
Investments, at market value (A) | $ | 550,577,909 | $ | 161,839,825 | $ | 22,314,900 | $ | 28,940,444 | ||||||||
Cash | — | 56,928 | — | — | ||||||||||||
Foreign Currency (B) | — | — | — | 180,309 | ||||||||||||
Cash collateral for securities sold short | — | — | — | — | ||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | — | 727,997 | ||||||||||||
Dividends and interest receivable | 1,331,028 | 74,454 | 73,787 | 272,190 | ||||||||||||
Receivable for capital shares sold | 900,360 | 286,120 | 5,100 | 40,000 | ||||||||||||
Receivable for investments sold | 334,556 | 806,435 | 248,084 | 1,195,402 | ||||||||||||
Receivable for securities lending income | 5,777 | 231 | 542 | — | ||||||||||||
Tax reclaim receivable | 39,842 | — | 2,490 | 5,199 | ||||||||||||
Other assets | 42,089 | 20,424 | 12,713 | 12,845 | ||||||||||||
Total Assets | 553,231,561 | 163,084,417 | 22,657,616 | 31,374,386 | ||||||||||||
Liabilities | ||||||||||||||||
Securities sold short(C) | — | — | — | — | ||||||||||||
Dividends for securities sold short payable | — | — | — | — | ||||||||||||
Foreign Currency(B) | 1,789 | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | 519,448 | ||||||||||||
Payable for reports to shareholders | 22,043 | 19,286 | 7,131 | 12,497 | ||||||||||||
Payable for return of collateral for securities on loan | 7,893,533 | 4,454,850 | 82,560 | — | ||||||||||||
Payable for capital shares redeemed | 433,834 | 205,463 | 50,833 | 28,126 | ||||||||||||
Payable for investments purchased | — | 528,994 | — | 1,264,467 | ||||||||||||
Payable to Investment Advisor | 459,567 | 81,827 | 6,795 | 7,929 | ||||||||||||
Payable to other affiliates | 83,547 | 6,293 | 430 | 430 | ||||||||||||
Payable to Trustees | 416 | 1,783 | 1,762 | 1,763 | ||||||||||||
Payable for professional services | 18,564 | 7,802 | 15,394 | 11,918 | ||||||||||||
Other accrued expenses and liabilities | 177,732 | 137,304 | 8,388 | 4,955 | ||||||||||||
Total Liabilities | 9,091,025 | 5,443,602 | 173,293 | 1,851,533 | ||||||||||||
Net Assets | $ | 544,140,536 | $ | 157,640,815 | $ | 22,484,323 | $ | 29,522,853 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 531,535,862 | $ | 152,457,499 | $ | 19,997,911 | $ | 29,842,981 | ||||||||
Accumulated net investment income (loss) | (602,626 | ) | 248,462 | (355,514 | ) | 37,029 | ||||||||||
Accumulated net realized gains (losses) on investments, foreign currency and securities sold short | (11,361,425 | ) | (8,969,366 | ) | 859,846 | (488,496 | ) | |||||||||
Net unrealized appreciation on investments, foreign currency transactions and securities sold short | 24,568,725 | 13,904,220 | 1,982,080 | 131,339 | ||||||||||||
Net Assets | $ | 544,140,536 | $ | 157,640,815 | $ | 22,484,323 | $ | 29,522,853 | ||||||||
(A) Includes market value of securities on loan of: | $ | 7,662,254 | $ | 4,363,887 | $ | 79,445 | $ | — | ||||||||
(B) Cost of foreign currency: | $ | (1,786 | ) | $ | — | $ | — | $ | 178,847 | |||||||
(C) Proceeds received for securities sold short: | $ | — | $ | — | $ | — | $ | — |
See accompanying Notes to Financial Statements.
48 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | |||||||||
Merger | Mid | Mid Cap | |||||||||
Arbitrage | Cap | Value | |||||||||
Fund | Fund | Fund | |||||||||
$ | 467,632,513 | $ | 131,686,560 | $ | 122,280,435 | ||||||
$ | 88,329,688 | $ | 23,471,515 | $ | 10,712,046 | ||||||
394,365,366 | 128,101,810 | 129,712,788 | |||||||||
$ | 482,695,054 | $ | 151,573,325 | $ | 140,424,834 | ||||||
— | — | — | |||||||||
— | — | — | |||||||||
79,021,033 | — | — | |||||||||
— | — | — | |||||||||
652,895 | 139,750 | 233,641 | |||||||||
9,132,828 | 2,966,165 | 113,282 | |||||||||
15,658,086 | — | 257,001 | |||||||||
— | 9,175 | 962 | |||||||||
5,419 | — | — | |||||||||
77,630 | 18,842 | 26,006 | |||||||||
587,242,945 | 154,707,257 | 141,055,726 | |||||||||
91,745,397 | — | — | |||||||||
125,229 | — | — | |||||||||
— | — | — | |||||||||
— | — | — | |||||||||
24,087 | 12,002 | 9,739 | |||||||||
— | 13,825,499 | 1,708,403 | |||||||||
2,464,734 | 111,833 | 270,660 | |||||||||
17,276,619 | 20,791,308 | 2,503,073 | |||||||||
407,820 | 58,273 | 88,330 | |||||||||
157,180 | 11,177 | 222 | |||||||||
1,817 | 3,774 | 1,776 | |||||||||
14,207 | 11,291 | 10,048 | |||||||||
57,527 | 4,357 | 6,637 | |||||||||
112,274,617 | 34,829,514 | 4,598,888 | |||||||||
$ | 474,968,328 | $ | 119,877,743 | $ | 136,456,838 | ||||||
$ | 461,726,573 | $ | 253,288,447 | $ | 113,557,175 | ||||||
(237,374 | ) | 76,999 | (1,300 | ) | |||||||
7,329,867 | (153,374,468 | ) |
4,756,564 | ||||||||
6,149,262 | 19,886,765 |
18,144,399 | |||||||||
$ | 474,968,328 | $ | 119,877,743 | $ | 136,456,838 | ||||||
$ | — | $ | 13,766,150 | $ | 1,683,640 | ||||||
$ | — | $ | — | $ | — | ||||||
$ | 82,832,118 | $ | — | $ | — |
49 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | ||||||||||||||||
Emerging | Touchstone | Touchstone | Touchstone | |||||||||||||
Markets | Focused | Global | International | |||||||||||||
Equity | Equity | Real Estate | Fixed Income | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 31,461,866 | $ | 123,635,808 | $ | 614,554 | $ | 1,200,464 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 2,476,911 | 9,421,320 | 47,981 | 115,854 | ||||||||||||
Net asset value price per share* | $ | 12.70 | $ | 13.12 | $ | 12.81 | $ | 10.36 | ||||||||
Maximum offering price per share | $ | 13.47 | $ | 13.92 | $ | 13.59 | $ | 10.88 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 4,474,655 | $ | 607,416 | $ | 338,154 | $ | 264,749 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 356,824 | 47,022 | 26,323 | 25,629 | ||||||||||||
Net asset value, offering price per share** | $ | 12.54 | $ | 12.92 | $ | 12.85 | $ | 10.33 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 239,505,426 | $ | 5,938,078 | $ | 226,451 | $ | 484,793 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 18,845,569 | 447,640 | 17,517 | 46,824 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 12.71 | $ | 13.27 | $ | 12.93 | $ | 10.35 | ||||||||
Pricing of Class Z Shares | ||||||||||||||||
Net assets applicable to Class Z shares | $ | — | $ | — | $ | — | $ | — | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | — | — | — | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | — | $ | — | ||||||||
Pricing of Institutional Class Shares | ||||||||||||||||
Net assets applicable to Institutional Class Shares | $ | 268,698,589 | $ | 27,459,513 | $ | 21,305,164 | $ | 27,572,847 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 21,125,866 | 2,152,071 | 1,632,790 | 2,661,202 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 12.72 | $ | 12.76 | $ | 13.05 | $ | 10.36 |
* There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a no-load $1 million or more subscription may be subject to contingent deferred sales load.
** Redemption price per share varies by length of time shares are held.
See accompanying Notes to Financial Statements.
50 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | |||||||||
Merger | Mid | Mid Cap | |||||||||
Arbitrage | Cap | Value | |||||||||
Fund | Fund | Fund | |||||||||
$ | 209,774,986 | $ | 12,606,441 | $ | 4,660,834 | ||||||
19,358,843 | 635,716 | 312,043 | |||||||||
$ | 10.84 | $ | 19.83 | $ | 14.94 | ||||||
$ | 11.50 | $ | 21.04 | $ | 15.85 | ||||||
$ | 40,157,605 | $ | 4,913,839 | $ | 507,123 | ||||||
3,757,457 | 252,964 | 34,124 | |||||||||
$ | 10.69 | $ | 19.43 | $ | 14.86 | ||||||
$ | 115,451,033 | $ | 56,696,014 | $ | 19,715,168 | ||||||
10,614,337 | 2,849,277 | 1,315,255 | |||||||||
$ | 10.88 | $ | 19.90 | $ | 14.99 | ||||||
$ | — | $ | 9,608,526 | $ | — | ||||||
— | 488,146 | — | |||||||||
$ | — | $ | 19.68 | $ | — | ||||||
$ | 109,584,704 | $ | 36,052,923 | $ | 111,573,713 | ||||||
10,058,202 | 1,811,976 | 7,420,009 | |||||||||
$ | 10.90 | $ | 19.90 | $ | 15.04 |
51 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||
Premium | Sands Capital | Short Duration | Small | |||||||||||||
Yield Equity | Select Growth | Fixed Income | Cap Core | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 165,375,404 | $ | 3,502,814,529 | $ | 87,048,232 | $ | 611,655,525 | ||||||||
Affiliated securities, at market value | $ | 26,454,136 | $ | 83,820,707 | $ | 2,378,339 | $ | 24,948,249 | ||||||||
Non-affiliated securities, at market value | 161,292,526 | 4,383,731,953 | 85,204,128 | 750,360,739 | ||||||||||||
Investments, at market value (A) | $ | 187,746,662 | $ | 4,467,552,660 | $ | 87,582,467 | $ | 775,308,988 | ||||||||
Cash | — | — | — | — | ||||||||||||
Dividends and interest receivable | 325,671 | 2,615,335 | 472,014 | 890,582 | ||||||||||||
Receivable for capital shares sold | 457,134 | 31,434,739 | 956 | 2,991,769 | ||||||||||||
Receivable for investments sold | — | 62,523,213 | — | — | ||||||||||||
Receivable from securities lending income | 3,109 | 83,492 | — | 343,953 | ||||||||||||
Tax reclaim receivable | 7,297 | — | — | — | ||||||||||||
Other assets | 34,920 | 367,162 | 12,854 | 84,133 | ||||||||||||
Total Assets | 188,574,793 | 4,564,576,601 | 88,068,291 | 779,619,425 | ||||||||||||
Liabilities | ||||||||||||||||
Dividends payable | — | — | 2,693 | — | ||||||||||||
Payable for reports to shareholders | 7,835 | 116,834 | 2,157 | 5,102 | ||||||||||||
Payable for return of collateral for securities on loan | — | 198,472,230 | — | 78,835,879 | ||||||||||||
Payable for capital shares redeemed | 168,671 | 15,920,521 | 311,372 | 1,541,291 | ||||||||||||
Payable for investments purchased | 20,969,556 | 28,591,091 | — | 6,060,403 | ||||||||||||
Payable to Investment Advisor | 78,765 | 2,149,146 | 3,338 | 482,675 | ||||||||||||
Payable to other affiliates | 45,635 | 2,892,180 | 34,435 | 75,944 | ||||||||||||
Payable to Trustees | 1,776 | 2,383 | 1,773 | 1,847 | ||||||||||||
Payable for professional services | 10,428 | 32,402 | 7,246 | 11,368 | ||||||||||||
Other accrued expenses and liabilities | 1,206 | 100,381 | 14,894 | 21,189 | ||||||||||||
Total Liabilities | 21,283,872 | 248,277,168 | 377,908 | 87,035,698 | ||||||||||||
Net Assets | $ | 167,290,921 | $ | 4,316,299,433 | $ | 87,690,383 | $ | 692,583,727 | ||||||||
Net assets consist of: | ||||||||||||||||
Paid-in capital | $ | 151,005,135 | $ | 3,493,877,126 | $ | 91,047,618 | $ | 527,442,748 | ||||||||
Accumulated net investment income (loss) | 244,887 | (16,252,589 | ) | (238,438 | ) | 788,324 | ||||||||||
Accumulated net realized gains (losses) on investments | (6,330,359 | ) | (126,063,235 | ) | (3,653,032 | ) | 699,192 | |||||||||
Net unrealized appreciation on investments | 22,371,258 | 964,738,131 | 534,235 | 163,653,463 | ||||||||||||
Net Assets | $ | 167,290,921 | $ | 4,316,299,433 | $ | 87,690,383 | $ | 692,583,727 | ||||||||
(A) Includes market value of securities on loan of: | $ | — | $ | 197,922,740 | $ | — | $ | 76,820,110 |
See accompanying Notes to Financial Statements.
52 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | ||||||||||
Small | Touchstone | Ultra Short | |||||||||
Cap Value | Total Return | Duration Fixed | |||||||||
Fund | Bond Fund | Income Fund | |||||||||
$ | 37,787,910 | $ | 162,064,530 | $ | 612,121,195 | ||||||
$ | 784,339 | $ | 2,887,511 | $ | 146,120 | ||||||
39,727,952 | 163,621,635 | 613,207,229 | |||||||||
$ | 40,512,291 | $ | 166,509,146 | $ | 613,353,349 | ||||||
— | — | 11,429 | |||||||||
82,295 | 1,396,794 | 3,795,742 | |||||||||
49,451 | 371,558 | 4,122,572 | |||||||||
117,781 | 2,665 | 765,215 | |||||||||
4,472 | — | — | |||||||||
— | — | — | |||||||||
32,603 | 47,455 | 73,955 | |||||||||
40,798,893 | 168,327,618 | 622,122,262 | |||||||||
— | — | 176,589 | |||||||||
15,142 | 13,890 | 29,221 | |||||||||
2,989,420 | — | — | |||||||||
45,359 | 150,663 | 4,613,197 | |||||||||
47,552 | — | 15,363,163 | |||||||||
23,246 | 49,543 | 140,130 | |||||||||
4,733 | 13,601 | 438,952 | |||||||||
1,766 | 1,743 | 1,816 | |||||||||
10,728 | 13,038 | 22,931 | |||||||||
18,100 | 13,793 | 40,584 | |||||||||
3,156,046 | 256,271 | 20,826,583 | |||||||||
$ | 37,642,847 | $ | 168,071,347 | $ | 601,295,679 | ||||||
$ | 60,230,123 | $ | 163,297,436 | $ | 619,575,430 | ||||||
2,314 | (412,300 | ) | (1,760,804 | ) | |||||||
(25,313,971 | ) | 741,595 | (17,751,101 | ) | |||||||
2,724,381 | 4,444,616 | 1,232,154 | |||||||||
$ | 37,642,847 | $ | 168,071,347 | $ | 601,295,679 | ||||||
$ | 2,904,687 | $ | — | $ | — |
53 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||
Premium | Sands Capital | Short Duration | Small | |||||||||||||
Yield Equity | Select Growth | Fixed Income | Cap Core | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 88,967,529 | $ | 326,006,030 | $ | — | $ | 113,844,055 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 10,209,295 | 24,351,414 | 6,081,098 | |||||||||||||
Net asset value price per share* | $ | 8.71 | $ | 13.39 | — | $ | 18.72 | |||||||||
Maximum offering price per share | $ | 9.24 | $ | 14.21 | $ | — | $ | 19.86 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 20,076,839 | $ | 161,400,435 | $ | — | $ | 28,418,971 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 2,307,162 | 12,273,739 | — | 1,546,521 | ||||||||||||
Net asset value, offering price per share** | $ | 8.70 | $ | 13.15 | $ | — | $ | 18.38 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 58,246,553 | $ | 1,548,301,970 | $ | 54,131,092 | $ | 212,990,824 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 6,695,031 | 113,257,667 | 5,537,903 | 11,307,120 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 8.70 | $ | 13.67 | $ | 9.77 | $ | 18.84 | ||||||||
Pricing of Class Z Shares | ||||||||||||||||
Net assets applicable to Class Z shares | $ | — | $ | 2,280,590,998 | $ | 33,559,291 | $ | — | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | 170,315,058 | 3,431,885 | — | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | 13.39 | $ | 9.78 | $ | — | ||||||||
Pricing of Institutional Class Shares | ||||||||||||||||
Net assets applicable to Institutional Class Shares | $ | — | $ | — | $ | — | $ | 337,329,877 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | — | — | — | 17,934,384 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | — | $ | 18.81 |
* There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a no-load $1 million or more subscription may be subject to a contingent deferred sales load.
** Redemption price per share varies by length of time shares are held.
See accompanying Notes to Financial Statements.
54 |
Statements of Assets and Liabilities
March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | ||||||||||
Small | Touchstone | Ultra Short | |||||||||
Cap Value | Total Return | Duration Fixed | |||||||||
Fund | Fund | Income Fund | |||||||||
$ | 33,981,106 | $ | 14,261,624 | $ | 32,545,457 | ||||||
1,627,322 | 1,360,866 | 3,417,305 | |||||||||
$ | 20.88 | $ | 10.48 | $ | 9.52 | ||||||
$ | 22.15 | $ | 11.00 | $ | 9.71 | ||||||
$ | 510,920 | $ | 3,905,151 | $ | 13,654,665 | ||||||
24,650 | 373,205 | 1,433,799 | |||||||||
$ | 20.73 | $ | 10.46 | $ | 9.52 | ||||||
$ | 630,187 | $ | 31,052,303 | $ | 219,199,661 | ||||||
30,137 | 2,958,325 | 23,017,077 | |||||||||
$ | 20.91 | $ | 10.50 | $ | 9.52 | ||||||
$ | — | $ | — | $ | 320,762,114 | ||||||
— | — | 33,681,777 | |||||||||
$ | — | $ | — | $ | 9.52 | ||||||
$ | 2,520,634 | $ | 118,852,269 | $ | 15,133,782 | ||||||
�� | |||||||||||
120,623 | 11,328,486 | 1,589,783 | |||||||||
$ | 20.90 | $ | 10.49 | $ | 9.52 |
55 |
Statements of Operations
For the Six Months Ended March 31, 2013 (Unaudited)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Emerging | Touchstone | Global | International | |||||||||||||
Markets Equity | Focused Equity | Real Estate | Fixed Income | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends from affiliated securities | $ | 3,290 | $ | 2,159 | $ | 168 | $ | 403 | ||||||||
Dividends from non-affiliated securities(A) | 3,669,199 | 939,354 | 303,160 | — | ||||||||||||
Interest | — | — | — | 309,719 | ||||||||||||
Income from securities loaned | 87,274 | 1,484 | 639 | — | ||||||||||||
Total Investment Income | 3,759,763 | 942,997 | 303,967 | 310,122 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 2,678,319 | 409,092 | 92,462 | 84,171 | ||||||||||||
Administration fees | 468,492 | 102,417 | 20,072 | 26,582 | ||||||||||||
Compliance fees and expenses | 773 | 773 | 773 | 773 | ||||||||||||
Custody fees | 224,485 | 1,013 | 15,111 | 3,333 | ||||||||||||
Professional fees | 25,453 | 7,621 | 15,467 | 12,053 | ||||||||||||
Transfer Agent fees, Class A | 40,980 | 163,096 | 466 | 1,306 | ||||||||||||
Transfer Agent fees, Class C | 3,747 | 239 | 55 | 250 | ||||||||||||
Transfer Agent fees, Class Y | 51,930 | 2,488 | 24 | 2,059 | ||||||||||||
Transfer Agent fees, Class Z | — | — | — | — | ||||||||||||
Transfer Agent fees, Institutional Class | 11,808 | 43 | 49 | 108 | ||||||||||||
Registration Fees, Class A | 9,619 | 12,318 | 1,818 | 6,721 | ||||||||||||
Registration Fees, Class C | 5,500 | 2,415 | 1,439 | 2,574 | ||||||||||||
Registration Fees, Class Y | 18,201 | 4,864 | 1,432 | 2,813 | ||||||||||||
Registration Fees, Class Z | — | — | — | — | ||||||||||||
Registration Fees, Institutional Class | 17,502 | 2,513 | 1,386 | 3,726 | ||||||||||||
Dividend expense on securities sold short | — | — | — | — | ||||||||||||
Reports to Shareholders, Class A | 6,642 | 15,006 | 2,731 | 4,214 | ||||||||||||
Reports to Shareholders, Class C | 3,549 | 2,801 | 2,521 | 3,492 | ||||||||||||
Reports to Shareholders, Class Y | 9,564 | 2,912 | 2,519 | 3,504 | ||||||||||||
Reports to Shareholders, Class Z | — | — | — | — | ||||||||||||
Reports to Shareholders, Institutional Class | 6,340 | 2,854 | 2,543 | 3,781 | ||||||||||||
Shareholder servicing fees, Class Z | — | — | — | — | ||||||||||||
Distribution expenses, Class A | 43,606 | 123,847 | 672 | 2,021 | ||||||||||||
Distribution expenses, Class C | 22,875 | 2,427 | 1,306 | 1,923 | ||||||||||||
Trustee fees | 4,646 | 4,279 | 4,261 | 4,262 | ||||||||||||
Other expenses | 54,611 | 96,348 | 10,098 | 10,099 | ||||||||||||
Total Expenses | 3,708,642 | 959,366 | 177,205 | 179,765 | ||||||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (61,765 | ) | (282,438 | ) | (60,061 | ) | (68,345 | ) | ||||||||
Fees eligible for recoupment by the Advisor(B) | — | — | — | — | ||||||||||||
Net Expenses | 3,646,877 | 676,928 | 117,144 | 111,420 | ||||||||||||
Net Investment Income (Loss) | 112,886 | 266,069 | 186,823 | 198,702 | ||||||||||||
Realized and Unrealized Gain (Loss) on Investments | ||||||||||||||||
Net realized gain (loss) from non-affiliated securities | (2,185,951 | ) | 3,131,902 | 940,068 | 329,265 | |||||||||||
Net realized gain (loss) on foreign currency transactions | (258,810 | ) | — | 3,820 | (817,566 | ) | ||||||||||
Net realized loss on securities sold short | — | — | — | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 23,801,250 | 12,365,850 | 1,476,766 | (599,254 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | 9,888 | — | (3,448 | ) | 216,837 | |||||||||||
Net change in unrealized depreciation on securities sold short | — | — | — | — | ||||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 21,366,377 | 15,497,752 | 2,417,206 | (870,718 | ) | |||||||||||
Change in Net Assets Resulting from Operations | $ | 21,479,263 | $ | 15,763,821 | $ | 2,604,029 | $ | (672,016 | ) | |||||||
(A) Net of foreign tax withholding of: | $ | 325,875 | $ | 4,914 | $ | 10,996 | $ | 3,221 | ||||||||
(B)See Note 4 in Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
56 |
Statements of Operations
For the Six Months Ended March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | |||||||||
Merger | Mid | Mid Cap | |||||||||
Arbitrage | Cap | Value | |||||||||
Fund | Fund | Fund | |||||||||
$ | 18,494 | $ | 1,946 | $ | 1,302 | ||||||
3,651,914 | 1,152,521 | 1,150,731 | |||||||||
393,948 | — | — | |||||||||
— | 19,168 | 2,980 | |||||||||
4,064,356 | 1,173,635 | 1,155,013 | |||||||||
2,102,431 | 285,417 | 457,612 | |||||||||
347,277 | 61,806 | 93,869 | |||||||||
773 | 774 | 775 | |||||||||
18,117 | 1,400 | 906 | |||||||||
18,171 | 8,894 | 10,350 | |||||||||
86,681 | 993 | 1,496 | |||||||||
14,049 | 543 | 136 | |||||||||
48,876 | 2,281 | 13,814 | |||||||||
— | 614 | — | |||||||||
865 | 987 | 985 | |||||||||
16,934 | 3,709 | 5,086 | |||||||||
4,861 | 4,439 | 870 | |||||||||
8,744 | 2,694 | 4,707 | |||||||||
— | 4,463 | — | |||||||||
1,548 | 1,197 | 3,699 | |||||||||
1,175,076 | — | — | |||||||||
16,217 | 3,302 | 3,142 | |||||||||
4,956 | 3,463 | 2,873 | |||||||||
16,462 | 3,850 | 4,289 | |||||||||
— | 3,115 | — | |||||||||
4,810 | 2,645 | 3,287 | |||||||||
— | 4,781 | — | |||||||||
224,986 | 5,764 | 4,832 | |||||||||
160,100 | 10,411 | 1,699 | |||||||||
4,319 | 6,271 | 4,273 | |||||||||
21,013 | 7,577 | 6,209 | |||||||||
4,297,266 | 431,390 | 624,909 | |||||||||
— | (79,864 | ) | (121,522 | ) | |||||||
16,178 | — | — | |||||||||
4,313,444 | 351,526 | 503,387 | |||||||||
(249,088 | ) | 822,109 | 651,626 | ||||||||
9,570,842 | 1,257,724 | 5,620,053 | |||||||||
303,498 | — | — | |||||||||
(1,225,333 | ) | — | — | ||||||||
10,622,597 | 12,943,807 | 12,071,670 | |||||||||
24,300 | — | — | |||||||||
(7,284,596 | ) | — | — | ||||||||
12,011,308 | 14,201,531 | 17,691,723 | |||||||||
$ | 11,762,220 | $ | 15,023,640 | $ | 18,343,349 | ||||||
$ | 2,297 | $ | — | $ | — |
57 |
Statements of Operations
For the Six Months Ended March 31, 2013 (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | Touchstone | |||||||||||||
Premium Yield | Sands Capital | Short Duration | Small Cap | |||||||||||||
Equity | Select Growth | Fixed Income | Core | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends from affiliated securities | $ | 2,663 | $ | 30,957 | $ | 2,624 | $ | 12,352 | ||||||||
Dividends from non-affiliated securities(A) | 2,593,688 | 17,623,194 | — | 8,187,801 | ||||||||||||
Interest | 2,910 | — | 822,517 | — | ||||||||||||
Income from securities loaned | 3,127 | 383,851 | — | 1,349,407 | ||||||||||||
Total Investment Income | 2,602,388 | 18,038,002 | 825,141 | 9,549,560 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 436,825 | 14,607,807 | 118,059 | 2,487,283 | ||||||||||||
Administration fees | 109,907 | 3,185,442 | 81,956 | 507,366 | ||||||||||||
Compliance fees and expenses | 774 | 774 | 773 | 773 | ||||||||||||
Custody fees | 1,222 | 17,387 | 609 | 4,778 | ||||||||||||
Professional fees | 10,977 | 61,943 | 6,977 | 16,292 | ||||||||||||
Transfer Agent fees, Class A | 17,192 | 67,407 | — | 69,040 | ||||||||||||
Transfer Agent fees, Class C | 4,667 | 28,044 | — | 10,352 | ||||||||||||
Transfer Agent fees, Class Y | 12,121 | 389,196 | 1,230 | 43,233 | ||||||||||||
Transfer Agent fees, Class Z | — | 672,143 | 14,553 | — | ||||||||||||
Transfer Agent fees, Institutional Class | — | — | — | 3,609 | ||||||||||||
Registration Fees, Class A | 7,949 | 11,630 | — | 10,330 | ||||||||||||
Registration Fees, Class C | 4,408 | 7,704 | — | 7,295 | ||||||||||||
Registration Fees, Class Y | 8,307 | 34,580 | 6,456 | 12,364 | ||||||||||||
Registration Fees, Class Z | — | 46,099 | 12,270 | — | ||||||||||||
Registration Fees, Institutional Class | — | — | — | 8,810 | ||||||||||||
Reports to Shareholders, Class A | 5,151 | 10,290 | — | 8,687 | ||||||||||||
Reports to Shareholders, Class C | 3,599 | 6,468 | — | 3,810 | ||||||||||||
Reports to Shareholders, Class Y | 4,494 | 66,722 | 2,129 | 8,292 | ||||||||||||
Reports to Shareholders, Class Z | — | 101,674 | 1,824 | — | ||||||||||||
Reports to Shareholders, Institutional Class | — | — | — | 3,697 | ||||||||||||
Shareholder servicing fees, Class Z | — | 2,266,467 | 42,551 | — | ||||||||||||
Distribution expenses, Class A | 94,460 | 300,157 | — | 116,558 | ||||||||||||
Distribution expenses, Class C | 85,971 | 587,609 | — | 128,049 | ||||||||||||
Trustee fees | 4,279 | 4,828 | 4,272 | 4,343 | ||||||||||||
Other expenses | 9,464 | 84,934 | 23,749 | 23,433 | ||||||||||||
Total Expenses | 821,767 | 22,559,305 | 317,408 | 3,478,394 | ||||||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (39,231 | ) | (201,833 | ) | (41,513 | ) | (327,264 | ) | ||||||||
Fees eligible for recoupment by the Advisor(B) | — | — | — | — | ||||||||||||
Net Expenses | 782,536 | 22,357,472 | 275,895 | 3,151,130 | ||||||||||||
Net Investment Income (Loss) | 1,819,852 | (4,319,470 | ) | 549,246 | 6,398,430 | |||||||||||
Realized and Unrealized Gain on Investments | ||||||||||||||||
Net realized gain on investments | 983,508 | 15,590,665 | 56,922 | 1,874,756 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 8,991,230 | 213,928,335 | (259,394 | ) | 97,769,373 | |||||||||||
Net Realized and Unrealized Gain (Loss) on Investments | 9,974,738 | 229,519,000 | (202,472 | ) | 99,644,129 | |||||||||||
Change in Net Assets Resulting from Operations | $ | 11,794,590 | $ | 225,199,530 | $ | 346,774 | $ | 106,042,559 | ||||||||
(A) Net of foreign tax withholding of: | $ | 28,875 | $ | — | $ | — | $ | 22,465 | ||||||||
(B) See Note 4 in Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
58 |
Statements of Operations
For the Six Months Ended March 31, 2013 (Unaudited) (Continued)
Touchstone | |||||||||||
Touchstone | Touchstone | Ultra Short | |||||||||
Small Cap | Total Return | Duration | |||||||||
Value | Bond | Fixed Income | |||||||||
Fund | Fund | Fund | |||||||||
$ | 302 | $ | 1,951 | $ | 8,227 | ||||||
620,387 | — | — | |||||||||
— | 2,667,044 | 5,093,385 | |||||||||
39,415 | — | — | |||||||||
660,104 | 2,668,995 | 5,101,612 | |||||||||
166,086 | 311,603 | 735,714 | |||||||||
30,333 | 154,714 | 510,785 | |||||||||
773 | 773 | 773 | |||||||||
2,335 | 719 | 5,293 | |||||||||
10,455 | 12,392 | 20,905 | |||||||||
23,631 | 5,062 | 4,241 | |||||||||
83 | 1,391 | 2,452 | |||||||||
68 | 3,288 | 18,392 | |||||||||
— | — | 68,392 | |||||||||
33 | 327 | 227 | |||||||||
7,693 | 4,540 | 3,976 | |||||||||
1,766 | 2,543 | 3,884 | |||||||||
1,771 | 3,673 | 2,138 | |||||||||
— | — | 26,737 | |||||||||
1,771 | 4,300 | 4,445 | |||||||||
6,244 | 4,140 | 3,625 | |||||||||
2,699 | 2,884 | 3,317 | |||||||||
3,953 | 3,315 | 7,415 | |||||||||
— | — | 14,454 | |||||||||
2,744 | 6,601 | 3,524 | |||||||||
— | — | 334,262 | |||||||||
40,374 | 15,632 | 38,508 | |||||||||
1,084 | 20,483 | 48,474 | |||||||||
4,264 | 4,243 | 4,247 | |||||||||
9,442 | 25,007 | 39,614 | |||||||||
317,602 | 587,630 | 1,905,794 | |||||||||
(71,311 | ) | (83,239 | ) | (184,508 | ) | ||||||
— | 12,836 | ||||||||||
246,291 | 504,391 | 1,734,122 | |||||||||
413,813 | 2,164,604 | 3,367,490 | |||||||||
2,854,175 | 742,887 | 173,994 | |||||||||
1,736,877 | (524,068 | ) | (517,567 | ) | |||||||
4,591,052 | 218,819 | (343,573 | ) | ||||||||
$ | 5,004,865 | $ | 2,383,423 | $ | 3,023,917 | ||||||
$ | 1,055 | $ | — | $ | — |
59 |
Statements of Changes in Net Assets
Touchstone | Touchstone | |||||||||||||||
Emerging Markets | Focused Equity | |||||||||||||||
Equity Fund | Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | For the | Ended | For the | |||||||||||||
March 31, | Year Ended | March 31, | Year Ended | |||||||||||||
2013 | September 30, | 2013 | September 30, | |||||||||||||
(Unaudited) | 2012 | (Unaudited) | 2012 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 112,886 | $ | 6,555,454 | $ | 266,069 | $ | 745,163 | ||||||||
Net realized gain (loss) on investments, warrants and foreign currency and securities sold short | (2,444,761 | ) | (8,321,643 | ) | 3,131,902 | (12,093,716 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions and securities sold short | 23,811,138 | 72,612,147 | 12,365,850 | 33,334,544 | ||||||||||||
Change in Net Assets from Operations | 21,479,263 | 70,845,958 | 15,763,821 | 21,985,991 | ||||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (13,779 | ) | (356,824 | ) | (399,212 | ) | (539,134 | ) | ||||||||
Net investment income, Class C | — | (1,404 | ) | (1,105 | ) | — | ||||||||||
Net investment income, Class Y | (849,220 | ) | (3,413,396 | ) | (14,419 | ) | (57,620 | ) | ||||||||
Net investment income, Institutional Class | (1,292,832 | ) | (5,335,385 | ) | (168,854 | ) | (6,578 | ) | ||||||||
Net realized gains, Class A | — | (210,757 | ) | — | (2,039,846 | ) | ||||||||||
Net realized gains, Class C | — | (41,102 | ) | — | (4,919 | ) | ||||||||||
Net realized gains, Class Y | — | (1,324,868 | ) | — | (257,794 | ) | ||||||||||
Net realized gains, Institutional Class | — | (2,229,013 | ) | — | (13,399 | ) | ||||||||||
Total Distributions | (2,155,831 | ) | (12,912,749 | ) | (583,590 | ) | (2,919,290 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | (5,357,880 | ) | 44,043,511 | 36,360,676 | (7,121,388 | ) | ||||||||||
Total Increase (Decrease) in Net Assets | 13,965,552 | 101,976,720 | 51,540,907 | 11,945,313 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 530,174,984 | 428,198,264 | 106,099,908 | 94,154,595 | ||||||||||||
End of period | $ | 544,140,536 | $ | 530,174,984 | $ | 157,640,815 | $ | 106,099,908 | ||||||||
Accumulated Net Investment Income (Loss) | $ | (602,626 | ) | $ | 1,440,319 | $ | 248,462 | $ | 565,983 |
(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity in pages 66-69.
See accompanying Notes to Financial Statements.
60 |
Statements of Changes in Net Assets
(Continued)
Touchstone | |||||||||||||||||||||||
Touchstone | International | Touchstone | |||||||||||||||||||||
Global Real Estate | Fixed Income | Merger Arbitrage | |||||||||||||||||||||
Fund | Fund | Fund | |||||||||||||||||||||
For the | For the | For the | |||||||||||||||||||||
Six Months | Six Months | Six Months | |||||||||||||||||||||
Ended | For the | Ended | For the | Ended | For the | ||||||||||||||||||
March 31, | Year Ended | March 31, | Year Ended | March 31, | Year Ended | ||||||||||||||||||
2013 | September 30, | 2013 | September 30, | 2013 | September 30, | ||||||||||||||||||
(Unaudited) | 2012 | (Unaudited) | 2012 | (Unaudited) | 2012 | ||||||||||||||||||
$ | 186,823 | $ | 185,444 | $ | 198,702 | $ | 268,946 | $ | (249,088 | ) | $ | (1,220,423 | ) | ||||||||||
943,888 | 199,935 | (488,301 | ) | 403,461 | 8,649,007 |
3,963,208 | |||||||||||||||||
1,473,318 | 1,144,004 | (382,417 | ) | 318,766 | 3,362,301 |
2,779,448 | |||||||||||||||||
2,604,029 | 1,529,383 | (672,016 | ) | 991,173 | 11,762,220 | 5,522,233 | |||||||||||||||||
(13,164 | ) | (19,864 | ) | (4,103 | ) | (114,995 | ) | — | (2,875 | ) | |||||||||||||
(5,317 | ) | (1,218 | ) | (75 | ) | (17,144 | ) | — | (267 | ) | |||||||||||||
(4,201 | ) | (2,399 | ) | (1,374 | ) | (23,201 | ) | — | (1,453 | ) | |||||||||||||
(593,444 | ) | (171,907 | ) | (90,058 | ) | (394,900 | ) | — | (1,975 | ) | |||||||||||||
(4,182 | ) | (94,294 | ) | (7,395 | ) | (14,566 | ) | (1,776,953 | ) | (24,576 | ) | ||||||||||||
(1,892 | ) | (5,373 | ) | (1,544 | ) | (2,575 | ) | (319,821 | ) | (2,094 | ) | ||||||||||||
(1,243 | ) | (5,438 | ) | (1,910 | ) | (2,724 | ) | (952,570 | ) | (12,719 | ) | ||||||||||||
(182,424 | ) | (136,561 | ) | (111,301 | ) | (33,930 | ) | (940,828 | ) | (15,125 | ) | ||||||||||||
(805,867 | ) | (437,054 | ) | (217,760 | ) | (604,035 | ) | (3,990,172 | ) | (61,084 | ) | ||||||||||||
(3,374,752 | ) | 17,702,523 | (1,767,431 | ) | 20,005,296 | 121,404,117 | 333,641,571 | ||||||||||||||||
(1,576,590 | ) | 18,794,852 | (2,657,207 | ) | 20,392,434 | 129,176,165 | 339,102,720 | ||||||||||||||||
24,060,913 | 5,266,061 | 32,180,060 | 11,787,626 | 345,792,163 | 6,689,443 | ||||||||||||||||||
$ | 22,484,323 | $ | 24,060,913 | $ | 29,522,853 | $ | 32,180,060 | $ | 474,968,328 | $ | 345,792,163 | ||||||||||||
$ | (355,514 | ) | $ | 73,789 | $ | 37,029 | $ | (66,063 | ) | $ | (237,374 | ) | $ | 11,714 |
61 |
Statements of Changes in Net Assets
(Continued)
Touchstone | Touchstone | |||||||||||||||
Mid Cap | Mid Cap Value | |||||||||||||||
Fund | Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||
March 31, | Ended | March 31, | Ended | |||||||||||||
2013 | September 30, | 2013 | September 30, | |||||||||||||
(Unaudited) | 2012 | (Unaudited) | 2012 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 822,109 | $ | 582,294 | $ | 651,626 | $ | 764,515 | ||||||||
Net realized gain (loss) on investments | 1,257,724 | 12,549,162 | 5,620,053 | 473,427 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 12,943,807 | 3,359,554 | 12,071,670 | 13,466,639 | ||||||||||||
Change in Net Assets from Operations | 15,023,640 | 16,491,010 | 18,343,349 | 14,704,581 | ||||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (48,160 | ) | (1,165 | ) | (16,084 | ) | (24,656 | ) | ||||||||
Net investment income, Class C | (20,002 | ) | — | (121 | ) | (275 | ) | |||||||||
Net investment income, Class Y | (864,200 | ) | (141,026 | ) | (84,791 | ) | (119,669 | ) | ||||||||
Net investment income, Class Z | (65,114 | ) | (395 | ) | — | — | ||||||||||
Net investment income, Institutional Class | (226,908 | ) | — | (564,442 | ) | (639,751 | ) | |||||||||
Return of capital, Class A | — | — | — | — | ||||||||||||
Return of capital, Class C | — | — | — | — | ||||||||||||
Return of capital, Class Y | — | — | — | — | ||||||||||||
Net realized gains, Class A | — | — | (41,174 | ) | (157,428 | ) | ||||||||||
Net realized gains, Class C | — | — | (3,412 | ) | (12,580 | ) | ||||||||||
Net realized gains, Class Y | — | — | (161,900 | ) | (499,702 | ) | ||||||||||
Net realized gains, Institutional Class | — | — | (973,379 | ) | (2,444,064 | ) | ||||||||||
Total Distributions | (1,224,384 | ) | (142,586 | ) | (1,845,303 | ) | (3,898,125 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | 44,293,576 | (34,457,537 | ) | 27,232,085 | 34,858,673 | |||||||||||
Total Increase (Decrease) in Net Assets | 58,092,832 | (18,109,113 | ) | 43,730,131 | 45,665,129 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 61,784,911 | 79,894,024 | 92,726,707 | 47,061,578 | ||||||||||||
End of period | $ | 119,877,743 | $ | 61,784,911 | $ | 136,456,838 | $ | 92,726,707 | ||||||||
Accumulated Net Investment Income (Loss) | $ | 76,999 | $ | 479,274 | $ | (1,300 | ) | $ | 12,512 |
(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 69-72.
See accompanying Notes to Financial Statements.
62 |
Statements of Changes in Net Assets
(Continued)
Touchstone | Touchstone | ||||||||||||||||||||||
Touchstone | Sands Capital | Short Duration | |||||||||||||||||||||
Premium Yield | Select Growth | Fixed Income | |||||||||||||||||||||
Equity Fund | Fund | Fund | |||||||||||||||||||||
For the | For the | For the | |||||||||||||||||||||
Six Months | Six Months | Six Months | |||||||||||||||||||||
Ended | For the Year | Ended | For the Period | Ended | For the Period | ||||||||||||||||||
March 31, | Ended | March 31, | Ended | March 31, | Ended | ||||||||||||||||||
2013 | September 30, | 2013 | September 30, | 2013 | September 30, | ||||||||||||||||||
(Unaudited) | 2012 | (Unaudited) | 2012(A) | (Unaudited) | 2012(A) | ||||||||||||||||||
$ | 1,819,852 | $ | 2,452,459 | $ | (4,319,470 | ) | $ | (14,530,439 | ) | $ | 549,246 | $ | 874,299 | ||||||||||
983,508 | (896,645 | ) | 15,590,665 | (43,704,614 | ) | 56,922 | 124,837 | ||||||||||||||||
8,991,230 | 11,511,482 | 213,928,335 | 605,600,683 | (259,394 | ) | 222,569 | |||||||||||||||||
11,794,590 | 13,067,296 | 225,199,530 | 547,365,630 | 346,774 | 1,221,705 | ||||||||||||||||||
(1,040,863 | ) | (1,431,422 | ) | — | — | — | — | ||||||||||||||||
(173,200 | ) | (302,551 | ) | — | — | — | — | ||||||||||||||||
(501,201 | ) | (680,147 | ) | — | — | (533,126 | ) | (282,567 | ) | ||||||||||||||
— | — | — | — | (276,414 | ) | (827,427 | ) | ||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||
— | (35,658 | ) | — | — | — | — | |||||||||||||||||
— | (7,537 | ) | — | — | — | — | |||||||||||||||||
— | (16,943 | ) | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||
— | — | — | — | — | — | ||||||||||||||||||
(1,715,264 | ) | (2,474,258 | ) | — | — | (809,540 | ) | (1,109,994 | ) | ||||||||||||||
39,567,140 | 66,832,652 | 763,704,859 | 1,445,845,483 | (4,062,815 | ) | 50,830,158 | |||||||||||||||||
49,646,466 | 77,425,690 | 988,904,389 | 1,993,211,113 | (4,525,581 | ) | 50,941,869 | |||||||||||||||||
117,644,455 | 40,218,765 | 3,327,395,044 | 1,334,183,931 | 92,215,964 | 41,274,095 | ||||||||||||||||||
$ | 167,290,921 | $ | 117,644,455 | $ | 4,316,299,433 | $ | 3,327,395,044 | $ | 87,690,383 | $ | 92,215,964 | ||||||||||||
$ | 244,887 | $ | 140,299 | $ | (16,252,589 | ) | $ | (11,933,119 | ) | $ | (238,438 | ) | $ | 21,856 |
63 |
Statements of Changes in Net Assets
(Continued)
Touchstone | Touchstone | |||||||||||||||
Small Cap | Small Cap | |||||||||||||||
Core Fund | Value Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | Six Months | |||||||||||||||
Ended | For the | Ended | For the | |||||||||||||
March 31, | Year Ended | March 31, | Year Ended | |||||||||||||
2013 | September 30, | 2013 | September 30, | |||||||||||||
(Unaudited) | 2012 | (Unaudited) | 2012 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income | $ | 6,398,430 | $ | 1,868,995 | $ | 413,813 | $ | 442,969 | ||||||||
Net realized gain on investments | 1,874,756 | 3,764,467 | 2,854,175 | 1,405,659 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | 97,769,373 | 70,637,554 | 1,736,877 | 8,960,624 | ||||||||||||
Change in Net Assets from Operations | 106,042,559 | 76,271,016 | 5,004,865 | 10,809,252 | ||||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (942,115 | ) | (2,404 | ) | (374,659 | ) | (631,909 | ) | ||||||||
Net investment income, Class C | (121,769 | ) | (718 | ) | (2,155 | ) | (377 | ) | ||||||||
Net investment income, Class Y | (2,366,300 | ) | (106,623 | ) | (4,391 | ) | (1,414 | ) | ||||||||
Net investment income, Class Z | — | — | — | — | ||||||||||||
Net investment income, Institutional Class | (3,846,773 | ) | (123,274 | ) | (30,294 | ) | (28,966 | ) | ||||||||
Net realized gains, Class A | (630,183 | ) | (674,157 | ) | — | — | ||||||||||
Net realized gains, Class C | (187,197 | ) | (164,641 | ) | — | — | ||||||||||
Net realized gains, Class Y | (1,285,171 | ) | (1,166,246 | ) | — | — | ||||||||||
Net realized gains, Institutional Class | (1,967,687 | ) | (667,757 | ) | — | — | ||||||||||
Total Distributions | (11,347,195 | ) | (2,905,820 | ) | (411,499 | ) | (662,666 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | 72,207,946 | 296,303,079 | (551,584 | ) | (14,675,728 | ) | ||||||||||
Total Increase (Decrease) in Net Assets | 166,903,310 | 369,668,275 | 4,041,782 | (4,529,142 | ) | |||||||||||
Net Assets | ||||||||||||||||
Beginning of period | 525,680,417 | 156,012,142 | 33,601,065 | 38,130,207 | ||||||||||||
End of period | $ | 692,583,727 | $ | 525,680,417 | $ | 37,642,847 | $ | 33,601,065 | ||||||||
Accumulated Net Investment Income (Loss) | $ | 788,324 | $ | 1,666,851 | $ | 2,314 | $ | — |
(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 73-75.
See accompanying Notes to Financial Statements.
64 |
Statements of Changes in Net Assets
(Continued)
Touchstone | |||||||||||||||
Touchstone | Ultra Short | ||||||||||||||
Total Return | Duration Fixed | ||||||||||||||
Bond Fund | Income Fund | ||||||||||||||
For the | For the | ||||||||||||||
Six Months | Six Months | ||||||||||||||
Ended | For the | Ended | For the | ||||||||||||
March 31, | Year Ended | March 31, | Year Ended | ||||||||||||
2013 | September 30, | 2013 | September 30, | ||||||||||||
(Unaudited) | 2012 | (Unaudited) | 2012 | ||||||||||||
$ | 2,164,604 | $ | 2,431,642 | $ | 3,367,490 | $ | 5,980,835 | ||||||||
742,887 | 2,121,439 | 173,994 | 899,320 | ||||||||||||
(524,068 | ) | 2,047,740 | (517,567 | ) | 1,478,388 | ||||||||||
2,383,423 | 6,600,821 | 3,023,917 | 8,358,543 | ||||||||||||
(165,303 | ) | (194,956 | ) | (261,830 | ) | (66,666 | ) | ||||||||
(38,941 | ) | (55,442 | ) | (77,364 | ) | (51,076 | ) | ||||||||
(419,565 | ) | (624,921 | ) | (1,793,760 | ) | (1,271,104 | ) | ||||||||
— | — | (3,074,214 | ) | (7,819,313 | ) | ||||||||||
(1,966,202 | ) | (1,931,711 | ) | (95,614 | ) | (39,807 | ) | ||||||||
(7,165 | ) | — | — | — | |||||||||||
(2,608 | ) | — | — | — | |||||||||||
(15,600 | ) | — | — | — | |||||||||||
(82,400 | ) | — | — | — | |||||||||||
(2,697,784 | ) | (2,807,030 | ) | (5,302,782 | ) | (9,247,966 | ) | ||||||||
(23,138,351 | ) | 156,210,668 | 21,949,116 | 236,383,467 | |||||||||||
(23,452,712 | ) | 160,004,459 | 19,670,251 | 235,494,044 | |||||||||||
191,524,059 | 31,519,600 | 581,625,428 | 346,131,384 | ||||||||||||
$ | 168,071,347 | $ | 191,524,059 | $ | 601,295,679 | $ | 581,625,428 | ||||||||
$ | (412,300 | ) | $ | 13,107 | $ | (1,760,804 | ) | $ | 174,488 |
65 |
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone | ||||||||||||||||
Emerging Markets | ||||||||||||||||
Equity Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2013 | Ended | |||||||||||||||
(Unaudited) | September 30, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 400,133 | $ | 5,125,257 | 1,018,769 | $ | 12,322,032 | ||||||||||
Proceeds from Shares issued in connection with merger(A) | — | — | 511,406 | 6,295,683 | ||||||||||||
Reinvestment of distributions | 859 | 11,038 | 40,624 | 458,323 | ||||||||||||
Cost of Shares redeemed | (731,810 | ) | (9,301,906 | ) | (1,251,249 | ) | (14,800,815 | ) | ||||||||
Change in Class A Share Transactions | (330,818 | ) | (4,165,611 | ) | 319,550 | 4,275,223 | ||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 37,831 | 477,989 | 66,481 | 766,525 | ||||||||||||
Proceeds from Shares issued in connection with merger(A) | — | — | 5,937 | 72,429 | ||||||||||||
Reinvestment of distributions | — | — | 3,733 | 40,201 | ||||||||||||
Cost of Shares redeemed | (85,382 | ) | (1,056,613 | ) | (185,946 | ) | (2,168,600 | ) | ||||||||
Change in Class C Share Transactions | (47,551 | ) | (578,624 | ) | (109,795 | ) | (1,289,445 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 2,605,093 | 33,255,722 | 6,422,019 | 75,627,481 | ||||||||||||
Proceeds from Shares issued in connection with merger(A) | — | — | 1,491,945 | 18,403,858 | ||||||||||||
Reinvestment of distributions | 66,139 | 849,220 | 414,534 | 4,734,703 | ||||||||||||
Cost of Shares redeemed | (1,737,514 | ) | (22,044,911 | ) | (4,524,551 | ) | (52,860,814 | ) | ||||||||
Change in Class Y Share Transactions | 933,718 | 12,060,031 | 3,803,947 | 45,905,228 | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 3,305,972 | 42,309,384 | 11,525,916 | 138,694,659 | ||||||||||||
Proceeds from Shares issued in connection with merger(A) | — | — | 2,222,580 | 27,452,188 | ||||||||||||
Reinvestment of distributions | 97,567 | 1,253,736 | 625,508 | 7,097,193 | ||||||||||||
Cost of Shares redeemed | (4,355,002 | ) | (56,236,796 | ) | (15,031,609 | ) | (178,091,535 | ) | ||||||||
Change in Institutional Class Share Transactions | (951,463 | ) | (12,673,676 | ) | (657,605 | ) | (4,847,495 | ) | ||||||||
Change from Share Transactions | (396,114 | ) | $ | (5,357,880 | ) | 3,356,097 | $ | 44,043,511 |
(A)See Note 9 in the Notes to Financial Statements.
See accompanying Notes to Financial Statements.
66 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | Touchstone | ||||||||||||||||||||||||||||||
Focused Equity | Global Real Estate | ||||||||||||||||||||||||||||||
Fund | Fund | ||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | ||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | ||||||||||||||||||||||||||||
March 31, 2013 | Ended | March 31, 2013 | Ended | ||||||||||||||||||||||||||||
(Unaudited) | September 30, 2012 | (Unaudited) | September 30, 2012 | ||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||
2,372,442 | $ | 29,887,178 | 1,588,767 | $ | 17,127,663 | 7,638 | $ | 94,236 | 33,722 | $ | 353,846 | ||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
29,770 | 353,967 | 239,234 | 2,323,288 | 1,312 | 16,006 | 2,600 | 25,792 | ||||||||||||||||||||||||
(1,073,610 | ) | (12,860,684 | ) | (2,235,422 | ) | (23,457,198 | ) | (1,957 | ) | (24,060 | ) | (204,215 | ) | (2,071,273 | ) | ||||||||||||||||
1,328,602 | 17,380,461 | (407,421 | ) | (4,006,247 | ) | 6,993 | 86,182 | (167,893 | ) | (1,691,635 | ) | ||||||||||||||||||||
12,753 | 152,648 | 16,454 | 180,981 | 6,969 | 86,779 | 6,228 | 70,459 | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
26 | 307 | 300 | 2,845 | 590 | 7,209 | 666 | 6,591 | ||||||||||||||||||||||||
(552 | ) | (6,857 | ) | (1,016 | ) | (10,038 | ) | — | — | — | — | ||||||||||||||||||||
12,227 | 146,098 | 15,738 | 173,788 | 7,559 | 93,988 | 6,894 | 77,050 | ||||||||||||||||||||||||
205,760 | 2,606,602 | 368,061 | 4,013,563 | 4,966 | 62,663 | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
1,200 | 14,419 | 16,777 | 165,098 | 441 | 5,444 | 776 | 7,837 | ||||||||||||||||||||||||
(312,230 | ) | (3,712,954 | ) | (1,121,749 | ) | (11,549,416 | ) | (448 | ) | (5,759 | ) | (231 | ) | (2,470 | ) | ||||||||||||||||
(105,270 | ) | (1,091,933 | ) | (736,911 | ) | (7,370,755 | ) | 4,959 | 62,348 | 545 | 5,367 | ||||||||||||||||||||
1,945,656 | 22,979,942 | 406,964 | 4,491,265 | 15,548 | 190,620 | 1,696,950 | 20,216,998 | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
14,619 | 168,854 | 2,074 | 19,719 | 62,401 | 775,868 | 28,951 | 308,468 | ||||||||||||||||||||||||
(266,888 | ) | (3,222,746 | ) | (42,176 | ) | (429,158 | ) | (366,776 | ) | (4,583,758 | ) | (105,988 | ) | (1,213,725 | ) | ||||||||||||||||
1,693,387 | 19,926,050 | 366,862 | 4,081,826 | (288,827 | ) | (3,617,270 | ) | 1,619,913 | 19,311,741 | ||||||||||||||||||||||
2,928,946 | $ | 36,360,676 | (761,732 | ) | $ | (7,121,388 | ) | (269,316 | ) | $ | (3,374,752 | ) | 1,459,459 | $ | 17,702,523 |
67 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | ||||||||||||||||
International | ||||||||||||||||
Fixed Income | ||||||||||||||||
Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2013 | Ended | |||||||||||||||
(Unaudited) | September 30, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 8,279 | $ | 87,532 | 164,811 | $ | 1,744,296 | ||||||||||
Reinvestment of distributions | 978 | 10,369 | 8,088 | 81,334 | ||||||||||||
Cost of Shares redeemed | (74,514 | ) | (778,304 | ) | (235,275 | ) | (2,406,242 | ) | ||||||||
Change in Class A Share Transactions | (65,257 | ) | (680,403 | ) | (62,376 | ) | (580,612 | ) | ||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 38 | 399 | 3,881 | 40,710 | ||||||||||||
Reinvestment of distributions | 105 | 1,118 | 1,441 | 14,407 | ||||||||||||
Cost of Shares redeemed | (14,974 | ) | (155,856 | ) | (20,278 | ) | (208,994 | ) | ||||||||
Change in Class C Share Transactions | (14,831 | ) | (154,339 | ) | (14,956 | ) | (153,877 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 5,022 | 52,563 | 15,967 | 166,806 | ||||||||||||
Reinvestment of distributions | 311 | 3,284 | 2,343 | 23,568 | ||||||||||||
Cost of Shares redeemed | (7,033 | ) | (73,477 | ) | (38,595 | ) | (400,233 | ) | ||||||||
Change in Class Y Share Transactions | (1,700 | ) | (17,630 | ) | (20,285 | ) | (209,859 | ) | ||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change in Class Z Share Transactions | — | — | — | — | ||||||||||||
Institutional Class (A) | ||||||||||||||||
Proceeds from Shares issued | 313,765 | 3,288,364 | 2,089,915 | 21,976,658 | ||||||||||||
Reinvestment of distributions | 18,025 | 190,893 | 38,874 | 393,343 | ||||||||||||
Cost of Shares redeemed | (417,162 | ) | (4,394,316 | ) | (138,726 | ) | (1,420,357 | ) | ||||||||
Change in Institutional Class Share Transactions | (85,372 | ) | (915,059 | ) | 1,990,063 | 20,949,644 | ||||||||||
Change from Share Transactions | (167,160 | ) | $ | (1,767,431 | ) | 1,892,446 | $ | 20,005,296 |
(A) Mid Cap Fund began issuing Institutional Class shares on January 27, 2012.
See accompanying Notes to Financial Statements.
68 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | Touchstone | ||||||||||||||||||||||||||||||
Merger Arbitrage | Mid Cap | ||||||||||||||||||||||||||||||
Fund | Fund | ||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | ||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | ||||||||||||||||||||||||||||
March 31, 2013 | Ended | March 31, 2013 | Ended | ||||||||||||||||||||||||||||
(Unaudited) | September 30, 2012 | (Unaudited) | September 30, 2012 | ||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||
7,552,158 | $ | 80,697,974 | 15,827,343 | $ | 165,914,329 | 675,907 | $ | 12,406,855 | 23,786 | $ | 383,402 | ||||||||||||||||||||
161,374 | 1,713,795 | 2,123 | 21,813 | 2,766 | 46,590 | 74 | 1,073 | ||||||||||||||||||||||||
(2,454,670 | ) | (26,230,339 | ) | (1,755,387 | ) | (18,544,311 | ) | (97,670 | ) | (1,845,351 | ) | (22,199 | ) | (354,172 | ) | ||||||||||||||||
5,258,862 | 56,181,430 | 14,074,079 | 147,391,831 | 581,003 | 10,608,094 | 1,661 | 30,303 | ||||||||||||||||||||||||
1,519,966 | 16,092,537 | 2,510,261 | 26,227,182 | 194,986 | 3,527,333 | 27,890 | 428,530 | ||||||||||||||||||||||||
28,038 | 294,398 | 234 | 2,400 | 1,188 | 19,628 | — | — | ||||||||||||||||||||||||
(231,417 | ) | (2,453,613 | ) | (95,040 | ) | (995,364 | ) | (2,588 | ) | (47,006 | ) | (5,272 | ) | (80,399 | ) | ||||||||||||||||
1,316,587 | 13,933,322 | 2,415,455 | 25,234,218 | 193,586 | 3,499,955 | 22,618 | 348,131 | ||||||||||||||||||||||||
4,747,519 | 51,037,398 | 9,105,407 | 95,786,495 | 587,584 | 10,813,040 | 260,026 | 4,056,192 | ||||||||||||||||||||||||
84,113 | 895,808 | 1,316 | 13,535 | 10,452 | 176,644 | 686 | 9,990 | ||||||||||||||||||||||||
(2,716,132 | ) | (29,112,084 | ) | (723,619 | ) | (7,676,782 | ) | (604,945 | ) | (10,669,306 | ) | (3,312,679 | ) | (50,341,380 | ) | ||||||||||||||||
2,115,500 | 22,821,122 | 8,383,104 | 88,123,248 | (6,909 | ) | 320,378 | (3,051,967 | ) | (46,275,198 | ) | |||||||||||||||||||||
— | — | — | — | 529,409 | 9,456,334 | 14,276 | 216,275 | ||||||||||||||||||||||||
— | — | — | — | 3,892 | 65,114 | 27 | 395 | ||||||||||||||||||||||||
— | — | — | — | (61,376 | ) | (1,104,216 | ) | (69,537 | ) | (1,015,582 | ) | ||||||||||||||||||||
— | — | — | — | 471,925 | 8,417,232 | (55,234 | ) | (798,912 | ) | ||||||||||||||||||||||
3,487,872 | 37,472,075 | 7,925,680 | 83,665,017 | 1,312,793 | 25,791,911 | 768,703 | 12,749,317 | ||||||||||||||||||||||||
82,741 | 882,847 | 1,386 | 14,253 | 13,427 | 226,908 | — | — | ||||||||||||||||||||||||
(919,677 | ) | (9,886,679 | ) | (1,020,050 | ) | (10,786,996 | ) | (250,519 | ) | (4,570,902 | ) | (32,428 | ) | (511,178 | ) | ||||||||||||||||
2,650,936 | 28,468,243 | 6,907,016 | 72,892,274 | 1,075,701 | 21,447,917 | 736,275 | 12,238,139 | ||||||||||||||||||||||||
11,341,885 | $ | 121,404,117 | 31,779,654 | $ | 333,641,571 | 2,315,306 | $ | 44,293,576 | (2,346,647 | ) | $ | (34,457,537 | ) |
69 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | ||||||||||||||||
Mid Cap Value | ||||||||||||||||
Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2013 | Ended | |||||||||||||||
(Unaudited) | September 30, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 71,599 | $ | 968,289 | 99,552 | $ | 1,201,459 | ||||||||||
Reinvestment of distributions | 4,324 | 56,883 | 15,672 | 177,583 | ||||||||||||
Cost of Shares redeemed | (26,421 | ) | (348,100 | ) | (70,390 | ) | (860,027 | ) | ||||||||
Change in Class A Share Transactions | 49,502 | 677,072 | 44,834 | 519,015 | ||||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 11,468 | 162,300 | 3,915 | 48,396 | ||||||||||||
Reinvestment of distributions | 271 | 3,487 | 1,153 | 12,855 | ||||||||||||
Cost of Shares redeemed | (229 | ) | (3,102 | ) | (1,356 | ) | (16,449 | ) | ||||||||
Change in Class C Share Transactions | 11,510 | 162,685 | 3,712 | 44,802 | ||||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 370,767 | 5,173,476 | 875,349 | 10,720,385 | ||||||||||||
Reinvestment of distributions | 18,036 | 239,568 | 52,526 | 600,697 | ||||||||||||
Cost of Shares redeemed | (131,517 | ) | (1,788,448 | ) | (300,077 | ) | (3,707,016 | ) | ||||||||
Change in Class Y Share Transactions | 257,286 | 3,624,596 | 627,798 | 7,614,066 | ||||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change in Class Z Share Transactions | — | — | — | — | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 2,245,432 | 31,273,615 | 2,008,546 | 25,632,588 | ||||||||||||
Reinvestment of distributions | 113,408 | 1,512,111 | 267,687 | 3,077,352 | ||||||||||||
Cost of Shares redeemed | (695,478 | ) | (10,017,994 | ) | (164,030 | ) | (2,029,150 | ) | ||||||||
Change in Institutional Class Share Transactions | 1,663,362 | 22,767,732 | 2,112,203 | 26,680,790 | ||||||||||||
Change from Share Transactions | 1,981,660 | $ | 27,232,085 | 2,788,547 | $ | 34,858,673 |
See accompanying Notes to Financial Statements.
70 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | |||||||||||||||||||||||||||||||
Touchstone | Sands Capital | ||||||||||||||||||||||||||||||
Premium Yield | Select Growth | ||||||||||||||||||||||||||||||
Equity Fund | Fund | ||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | ||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | ||||||||||||||||||||||||||||
March 31, 2013 | Ended | March 31, 2013 | Ended | ||||||||||||||||||||||||||||
(Unaudited) | September 30, 2012 | (Unaudited) | September 30, 2012 | ||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||
2,509,484 | $ | 20,398,605 | 5,256,299 | $ | 41,246,082 | 12,542,200 | $ | 161,249,286 | 15,095,837 | $ | 177,705,991 | ||||||||||||||||||||
119,284 | 964,443 | 173,481 | 1,331,239 | — | — | — | — | ||||||||||||||||||||||||
(895,836 | ) | (7,261,267 | ) | (1,201,756 | ) | (9,294,102 | ) | (2,928,532 | ) | (37,301,468 | ) | (2,616,579 | ) | (30,450,320 | ) | ||||||||||||||||
1,732,932 | 14,101,781 | 4,228,024 | 33,283,219 | 9,613,668 | 123,947,818 | 12,479,258 | 147,255,671 | ||||||||||||||||||||||||
449,544 | 3,671,244 | 1,258,265 | 9,752,594 | 5,623,318 | 70,972,788 | 6,585,865 | 77,198,169 | ||||||||||||||||||||||||
17,725 | 142,534 | 32,666 | 249,150 | — | — | — | — | ||||||||||||||||||||||||
(95,325 | ) | (780,123 | ) | (465,502 | ) | (3,611,732 | ) | (481,803 | ) | (6,048,989 | ) | (381,929 | ) | (4,407,155 | ) | ||||||||||||||||
371,944 | 3,033,655 | 825,429 | 6,390,012 | 5,141,515 | 64,923,799 | 6,203,936 | 72,791,014 | ||||||||||||||||||||||||
3,548,838 | 30,117,109 | 4,425,665 | 34,247,193 | 36,299,725 | 475,087,142 | 66,657,657 | 796,429,242 | ||||||||||||||||||||||||
44,780 | 361,289 | 59,814 | 463,222 | — | — | — | — | ||||||||||||||||||||||||
(995,649 | ) | (8,046,694 | ) | (977,788 | ) | (7,550,994 | ) | (17,247,660 | ) | (221,618,487 | ) | (13,525,927 | ) | (157,829,720 | ) | ||||||||||||||||
2,597,969 | 22,431,704 | 3,507,691 | 27,159,421 | 19,052,065 | 253,468,655 | 53,131,730 | 638,599,522 | ||||||||||||||||||||||||
— | — | — | — | 58,014,294 | 739,912,756 | 97,944,548 | 1,150,009,715 | ||||||||||||||||||||||||
— | — | — | — | (32,928,635 | ) | (418,548,169 | ) | (49,822,471 | ) | (562,810,439 | ) | ||||||||||||||||||||
— | — | — | — | 25,085,659 | 321,364,587 | 48,122,077 | 587,199,276 | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
4,702,845 | $ | 39,567,140 | 8,561,144 | $ | 66,832,652 | 58,892,907 | $ | 763,704,859 | 119,937,001 | $ | 1,445,845,483 |
71 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | ||||||||||||||||
Short Duration | ||||||||||||||||
Fixed Income | ||||||||||||||||
Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2013 | Ended | |||||||||||||||
(Unaudited) | September 30, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | — | $ | — | — | $ | — | ||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change in Class A Share Transactions | — | — | — | — | ||||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change in Class C Share Transactions | — | — | — | — | ||||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 2,247,938 | 22,031,059 | 6,414,070 | 62,928,842 | ||||||||||||
Reinvestment of distributions | 53,164 | 520,744 | 24,706 | 242,364 | ||||||||||||
Cost of Shares redeemed | (2,352,867 | ) | (23,033,635 | ) | (967,723 | ) | (9,482,418 | ) | ||||||||
Change in Class Y Share Transactions | (51,765 | ) | (481,832 | ) | 5,471,053 | 53,688,788 | ||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | 231,841 | 2,272,383 | 840,365 | 8,240,649 | ||||||||||||
Reinvestment of distributions | 27,761 | 272,069 | 67,228 | 659,311 | ||||||||||||
Cost of Shares redeemed | (624,850 | ) | (6,125,435 | ) | (1,199,103 | ) | (11,758,590 | ) | ||||||||
Change in Class Z Share Transactions | (365,248 | ) | (3,580,983 | ) | (291,510 | ) | (2,858,630 | ) | ||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change in Institutional Class Share Transactions | — | — | — | — | ||||||||||||
Change from Share Transactions | (417,013 | ) | $ | (4,062,815 | ) | 5,179,543 | $ | 50,830,158 |
See accompanying Notes to Financial Statements.
72 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | Touchstone | ||||||||||||||||||||||||||||||
Small Cap | Small Cap | ||||||||||||||||||||||||||||||
Core Fund | Value Fund | ||||||||||||||||||||||||||||||
For the Six Months | For the Six Months | ||||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | ||||||||||||||||||||||||||||
March 31, 2013 | Ended | March 31, 2013 | Ended | ||||||||||||||||||||||||||||
(Unaudited) | September 30, 2012 | (Unaudited) | September 30, 2012 | ||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | ||||||||||||||||||||||||
1,620,994 | $ | 27,952,208 | 3,732,087 | $ | 55,599,620 | 92,245 | $ | 1,827,615 | 95,975 | $ | 1,624,312 | ||||||||||||||||||||
93,286 | 1,512,949 | 48,658 | 649,407 | 18,798 | 362,288 | 36,385 | 611,518 | ||||||||||||||||||||||||
(910,704 | ) | (15,366,170 | ) | (2,109,999 | ) | (30,986,160 | ) | (235,329 | ) | (4,547,517 | ) | (1,079,328 | ) | (17,272,984 | ) | ||||||||||||||||
803,576 | 14,098,987 | 1,670,746 | 25,262,867 | (124,286 | ) | (2,357,614 | ) | (946,968 | ) | (15,037,154 | ) | ||||||||||||||||||||
89,295 | 1,516,150 | 780,792 | 11,485,718 | 18,838 | 375,535 | 5,547 | 96,000 | ||||||||||||||||||||||||
16,268 | 259,899 | 10,332 | 135,845 | 111 | 2,155 | 21 | 377 | ||||||||||||||||||||||||
(106,393 | ) | (1,778,624 | ) | (239,619 | ) | (3,369,317 | ) | (9 | ) | (170 | ) | (3 | ) | (65 | ) | ||||||||||||||||
(830 | ) | (2,575 | ) | 551,505 | 8,252,246 | 18,940 | 377,520 | 5,565 | 96,312 | ||||||||||||||||||||||
2,605,821 | 44,576,644 | 7,264,844 | 106,479,205 | 19,073 | 383,742 | 12,874 | 226,591 | ||||||||||||||||||||||||
187,973 | 3,063,207 | 69,684 | 937,735 | 223 | 4,391 | 79 | 1,414 | ||||||||||||||||||||||||
(1,963,251 | ) | (32,973,703 | ) | (1,705,178 | ) | (25,653,407 | ) | (1,243 | ) | (24,522 | ) | (1,015 | ) | (17,517 | ) | ||||||||||||||||
830,543 | 14,666,148 | 5,629,350 | 81,763,533 | 18,053 | 363,611 | 11,938 | 210,488 | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
3,848,966 | 66,001,732 | 13,411,819 | 205,055,687 | 56,619 | 1,050,016 | 95,447 | 1,676,131 | ||||||||||||||||||||||||
231,422 | 3,764,027 | 46,086 | 621,290 | 1,562 | 30,294 | 1,702 | 28,939 | ||||||||||||||||||||||||
(1,529,761 | ) | (26,320,373 | ) | (1,663,832 | ) | (24,652,544 | ) | (795 | ) | (15,411 | ) | (87,406 | ) | (1,650,444 | ) | ||||||||||||||||
2,550,627 | 43,445,386 | 11,794,073 | 181,024,433 | 57,386 | 1,064,899 | 9,743 | 54,626 | ||||||||||||||||||||||||
4,183,916 | $ | 72,207,946 | 19,645,674 | $ | 296,303,079 | (29,907 | ) | $ | (551,584 | ) | (919,722 | ) | $ | (14,675,728 | ) |
73 |
Statements of Changes in Net Assets - Capital Stock Activity
(Continued)
Touchstone | ||||||||||||||||
Total Return | ||||||||||||||||
Bond Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2013 | Ended | |||||||||||||||
(Unaudited) | September 30, 2012 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A(A) | ||||||||||||||||
Proceeds from Shares issued | 589,525 | $ | 6,194,272 | 741,371 | $ | 7,645,356 | ||||||||||
Proceeds from Shares issued in connection with merger(B) | — | — | — | — | ||||||||||||
Reinvestment of distributions | 15,347 | 161,050 | 14,900 | 154,569 | ||||||||||||
Cost of Shares redeemed | (216,184 | ) | (2,269,420 | ) | (251,600 | ) | (2,600,131 | ) | ||||||||
Change in Class A Share Transactions | 388,688 | 4,085,902 | 504,671 | 5,199,794 | ||||||||||||
Class C(A) | ||||||||||||||||
Proceeds from Shares issued | 153,731 | 1,619,301 | 106,176 | 1,092,404 | ||||||||||||
Proceeds from Shares issued in connection with merger(B) | — | — | — | — | ||||||||||||
Reinvestment of distributions | 3,408 | 35,712 | 3,954 | 40,866 | ||||||||||||
Cost of Shares redeemed | (94,528 | ) | (988,527 | ) | (55,210 | ) | (565,073 | ) | ||||||||
Change in Class C Share Transactions | 62,611 | 666,486 | 54,920 | 568,197 | ||||||||||||
Class Y(A) | ||||||||||||||||
Proceeds from Shares issued | 616,374 | 6,468,375 | 2,058,293 | 21,256,329 | ||||||||||||
Proceeds from Shares issued in connection with merger(B) | — | — | — | — | ||||||||||||
Reinvestment of distributions | 41,002 | 430,904 | 50,693 | 526,251 | ||||||||||||
Cost of Shares redeemed | (524,474 | ) | (5,521,426 | ) | (1,038,286 | ) | (10,707,876 | ) | ||||||||
Change in Class Y Share Transactions | 132,902 | 1,377,853 | 1,070,700 | 11,074,704 | ||||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change in Class Z Share Transactions | — | — | — | — | ||||||||||||
Institutional Class(A) | ||||||||||||||||
Proceeds from Shares issued | 857,212 | 8,995,236 | 11,508,592 | 119,047,730 | ||||||||||||
Proceeds from Shares issued in connection with merger(B) | — | — | 3,233,926 | 33,345,880 | ||||||||||||
Reinvestment of distributions | 184,594 | 1,939,951 | 179,219 | 1,865,049 | ||||||||||||
Cost of Shares redeemed | (3,823,860 | ) | (40,203,779 | ) | (1,440,963 | ) | (14,890,686 | ) | ||||||||
Change in Institutional Class Share Transactions | (2,782,054 | ) | (29,268,592 | ) | 13,480,774 | 139,367,973 | ||||||||||
Change from Share Transactions | (2,197,853 | ) | $ | (23,138,351 | ) | 15,111,065 | $ | 156,210,668 |
(A) | Ultra Short Duration Fixed Income Fund began issuing Class A, Class C, Class Y and Institutional Class shares on April 16, 2012. |
(B) | See Note 9 in the Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
74 |
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, 2013 | Ended | ||||||||||||||
(Unaudited) | September 30, 2012 | ||||||||||||||
Shares | Dollars | Shares | Dollars | ||||||||||||
2,069,643 | $ | 19,755,588 | 276,368 | $ | 2,641,446 | ||||||||||
— | — | 3,544,125 | 33,870,180 | ||||||||||||
24,480 | 233,621 | 5,391 | 51,532 | ||||||||||||
(2,257,073 | ) | (21,552,220 | ) | (245,629 | ) | (2,347,253 | ) | ||||||||
(162,950 | ) | (1,563,011 | ) | 3,580,255 | 34,215,905 | ||||||||||
540,236 | 5,158,233 | 86,944 | 830,674 | ||||||||||||
— | — | 1,273,306 | 12,177,295 | ||||||||||||
4,308 | 41,097 | 1,537 | 14,688 | ||||||||||||
(315,417 | ) | (3,012,042 | ) | (157,115 | ) | (1,501,647 | ) | ||||||||
229,127 | 2,187,288 | 1,204,672 | 11,521,010 | ||||||||||||
8,028,668 | 76,551,575 | 2,030,490 | 19,402,128 | ||||||||||||
— | — | 22,513,787 | 215,295,273 | ||||||||||||
124,442 | 1,187,244 | 124,027 | 1,185,390 | ||||||||||||
(5,065,738 | ) | (48,340,328 | ) | (4,738,599 | ) | (45,297,679 | ) | ||||||||
3,087,372 | 29,398,491 | 19,929,705 | 190,585,112 | ||||||||||||
16,713,737 | 159,555,453 | 30,335,442 | 290,292,920 | ||||||||||||
264,659 | 2,525,283 | 572,615 | 5,477,285 | ||||||||||||
(18,722,160 | ) | (178,629,932 | ) | (31,605,912 | ) | (302,402,489 | ) | ||||||||
(1,743,764 | ) | (16,549,196 | ) | (697,855 | ) | (6,632,284 | ) | ||||||||
1,390,282 | 13,259,475 | 4,054,101 | 38,712,198 | ||||||||||||
— | — | 2,397,446 | 22,944,607 | ||||||||||||
7,912 | 75,437 | 3,634 | 34,721 | ||||||||||||
(509,248 | ) | (4,859,368 | ) | (5,754,344 | ) | (54,997,802 | ) | ||||||||
888,946 | 8,475,544 | 700,837 | 6,693,724 | ||||||||||||
2,298,731 | $ | 21,949,116 | 24,717,614 | $ | 236,383,467 |
75 |
Financial Highlights
Touchstone Emerging Markets Equity Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.24 | $ | 10.69 | $ | 12.68 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | (0.01 | ) | 0.11 | 0.10 | 0.03 | |||||||||||
Net realized and unrealized gains (losses) on investments | 0.48 | 1.68 | (2.05 | ) | 2.65 | |||||||||||
Total from investment operations | 0.47 | 1.79 | (1.95 | ) | 2.68 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||||||
Realized capital gains | — | (0.09 | ) | (0.02 | ) | — | ||||||||||
Total distributions | (0.01 | ) | (0.24 | ) | (0.04 | ) | — | |||||||||
Net asset value at end of period | $ | 12.70 | $ | 12.24 | $ | 10.69 | $ | 12.68 | ||||||||
Total return(B) | 3.97 | %(C) | 16.71 | % | (15.45 | )% | 26.80 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 31,462 | $ | 34,369 | $ | 26,592 | $ | 10,343 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.69 | %(D) | 1.72 | % | 1.74 | % | 1.74 | % | ||||||||
Gross expenses | 1.86 | %(D) | 1.99 | % | 1.95 | % | 2.25 | % | ||||||||
Net investment income (loss) | (0.30 | )%(D) | 0.94 | % | 0.98 | % | 0.76 | % | ||||||||
Portfolio turnover rate | 8 | %(C) | 33 | %(E) | 18 | % | 8 | % |
Touchstone Emerging Markets Equity Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.13 | $ | 10.54 | $ | 12.58 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | (0.05 | ) | 0.04 | 0.03 | — | (F) | ||||||||||
Net realized and unrealized gains (losses) on investments | 0.46 | 1.64 | (2.05 | ) | 2.58 | |||||||||||
Total from investment operations | 0.41 | 1.68 | (2.02 | ) | 2.58 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | — | (F) | — | — | |||||||||||
Realized capital gains | — | (0.09 | ) | (0.02 | ) | — | ||||||||||
Total distributions | — | (0.09 | ) | (0.02 | ) | — | ||||||||||
Net asset value at end of period | $ | 12.54 | $ | 12.13 | $ | 10.54 | $ | 12.58 | ||||||||
Total return(B) | 3.55 | %(C) | 15.84 | % | (16.07 | )% | 25.80 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 4,475 | $ | 4,903 | $ | 5,417 | $ | 3,590 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 2.44 | %(D) | 2.47 | % | 2.49 | % | 2.49 | % | ||||||||
Gross expenses | 2.84 | %(D) | 2.85 | % | 2.82 | % | 2.99 | % | ||||||||
Net investment income (loss) | (1.05 | )%(D) | 0.19 | % | 0.21 | % | (0.03 | )% | ||||||||
Portfolio turnover rate | 8 | %(C) | 33 | %(E) | 18 | % | 8 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
(F) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
76 |
Financial Highlights
(Continued)
Touchstone Emerging Markets Equity Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.27 | $ | 10.74 | $ | 12.72 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.01 | 0.14 | 0.11 | 0.01 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.48 | 1.70 | (2.05 | ) | 2.71 | |||||||||||
Total from investment operations | 0.49 | 1.84 | (1.94 | ) | 2.72 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.05 | ) | (0.22 | ) | (0.02 | ) | — | |||||||||
Realized capital gains | — | (0.09 | ) | (0.02 | ) | — | ||||||||||
Total distributions | (0.05 | ) | (0.31 | ) | (0.04 | ) | — | |||||||||
Net asset value at end of period | $ | 12.71 | $ | 12.27 | $ | 10.74 | $ | 12.72 | ||||||||
Total return | 4.14 | %(B) | 17.12 | % | (15.21 | )% | 27.10 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 239,505 | $ | 219,717 | $ | 151,532 | $ | 13,597 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.35 | %(C) | 1.41 | % | 1.48 | % | 1.49 | % | ||||||||
Gross expenses | 1.35 | %(C) | 1.44 | % | 1.48 | % | 2.10 | % | ||||||||
Net investment income | 0.04 | %(C) | 1.25 | % | 1.50 | % | 0.86 | % | ||||||||
Portfolio turnover rate | 8 | %(B) | 33 | %(D) | 18 | % | 8 | % |
Touchstone Emerging Markets Equity Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.28 | $ | 10.76 | $ | 12.74 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.01 | 0.18 | 0.13 | 0.05 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.49 | 1.67 | (2.06 | ) | 2.69 | |||||||||||
Total from investment operations | 0.50 | 1.85 | (1.93 | ) | 2.74 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.06 | ) | (0.24 | ) | (0.03 | ) | — | |||||||||
Realized capital gains | — | (0.09 | ) | (0.02 | ) | — | ||||||||||
Total distributions | (0.06 | ) | (0.33 | ) | (0.05 | ) | — | |||||||||
Net asset value at end of period | $ | 12.72 | $ | 12.28 | $ | 10.76 | $ | 12.74 | ||||||||
Total return | 4.15 | %(B) | 17.28 | % | (15.18 | )% | 27.40 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 268,699 | $ | 271,186 | $ | 244,657 | $ | 125,414 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.29 | %(C) | 1.32 | % | 1.34 | % | 1.34 | % | ||||||||
Gross expenses | 1.31 | %(C) | 1.37 | % | 1.43 | % | 1.74 | % | ||||||||
Net investment income | 0.10 | %(C) | 1.34 | % | 1.51 | % | 1.26 | % | ||||||||
Portfolio turnover rate | 8 | %(B) | 33 | %(D) | 18 | % | 8 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
77 |
Financial Highlights
(Continued)
Touchstone Focused Equity Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||
Ended | Ended | |||||||||||||||
March 31, | Year Ended | September | ||||||||||||||
2013 | September 30, | 30, | ||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.62 | $ | 9.50 | $ | 10.95 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | 0.02 | (B) | 0.08 | (B) | 0.10 | 0.02 | ||||||||||
Net investment income | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.53 | 2.37 | (1.38 | ) | 0.93 | |||||||||||
Total from investment operations | 1.55 | 2.45 | (1.28 | ) | 0.95 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.05 | ) | (0.07 | ) | (0.08 | ) | — | |||||||||
Realized capital gains | — | (0.26 | ) | (0.09 | ) | — | ||||||||||
Total distributions | (0.05 | ) | (0.33 | ) | (0.17 | ) | — | |||||||||
Net asset value at end of period | $ | 13.12 | $ | 11.62 | $ | 9.50 | $ | 10.95 | ||||||||
Total return(C) | 13.40 | %(D) | 26.46 | % | (11.95 | )% | 9.40 | %(D) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 123,636 | $ | 94,025 | $ | 80,741 | $ | 814 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.20 | %(E) | 1.20 | % | 1.20 | % | 1.20 | %(E) | ||||||||
Gross expenses | 1.69 | %(E) | 1.82 | % | 1.70 | % | 4.65 | %(E) | ||||||||
Net investment income | 0.40 | %(E) | 0.73 | % | 0.56 | % | 0.46 | %(E) | ||||||||
Portfolio turnover rate | 20 | %(D) | 54 | % | 44 | % | 101 | %(D) |
Touchstone Focused Equity Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||
Ended | Ended | |||||||||||||||
March 31, | Year Ended | September | ||||||||||||||
2013 | September 30, | 30, | ||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.46 | $ | 9.38 | $ | 10.88 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment loss | (0.02 | )(B) | — | (B)(F) | (0.05 | ) | (0.01 | ) | ||||||||
Net realized and unrealized gains (losses) on investments | 1.51 | 2.34 | (1.32 | ) | 0.89 | |||||||||||
Total from investment operations | 1.49 | 2.34 | (1.37 | ) | 0.88 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.03 | ) | — | (0.04 | ) | — | ||||||||||
Realized capital gains | — | (0.26 | ) | (0.09 | ) | — | ||||||||||
Total distributions | (0.03 | ) | (0.26 | ) | (0.13 | ) | — | |||||||||
Net asset value at end of period | $ | 12.92 | $ | 11.46 | $ | 9.38 | $ | 10.88 | ||||||||
Total return(C) | 13.00 | %(D) | 25.24 | % | (12.78 | )% | 8.90 | %(D) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 607 | $ | 399 | $ | 179 | $ | 187 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.95 | %(E) | 1.95 | % | 1.95 | % | 1.95 | %(E) | ||||||||
Gross expenses | 4.30 | %(E) | 6.33 | % | 5.90 | % | 5.45 | %(E) | ||||||||
Net investment loss | (0.35 | )%(E) | (0.02 | )% | (0.52 | )% | (0.24 | )%(E) | ||||||||
Portfolio turnover rate | 20 | %(D) | 54 | % | 44 | % | 101 | %(D) |
(A) | Represents the period from commencement of operations (December 31, 2009) through September 30, 2010. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
78 |
Financial Highlights
(Continued)
Touchstone Focused Equity Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||
Ended | Ended | |||||||||||||||
March 31, | Year Ended | September | ||||||||||||||
2013 | September 30, | 30, | ||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.73 | $ | 9.60 | $ | 10.96 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.04 | (B) | 0.11 | (B) | 0.02 | 0.04 | ||||||||||
Net realized and unrealized gains (losses) on investments | 1.55 | 2.39 | (1.29 | ) | 0.92 | |||||||||||
Total from investment operations | 1.59 | 2.50 | (1.27 | ) | 0.96 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.05 | ) | (0.11 | ) | — | — | ||||||||||
Realized capital gains | — | (0.26 | ) | (0.09 | ) | — | ||||||||||
Total distributions | (0.05 | ) | (0.37 | ) | (0.09 | ) | — | |||||||||
Net asset value at end of period | $ | 13.27 | $ | 11.73 | $ | 9.60 | $ | 10.96 | ||||||||
Total return | 13.57 | %(C) | 26.77 | % | (11.77 | )% | 9.60 | %(C) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 5,938 | $ | 6,485 | $ | 12,383 | $ | 201 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.95 | %(D) | 0.95 | % | 0.95 | % | 0.95 | %(D) | ||||||||
Gross expenses | 1.53 | %(D) | 1.40 | % | 1.18 | % | 4.62 | %(D) | ||||||||
Net investment income | 0.65 | %(D) | 0.98 | % | 0.79 | % | 0.81 | %(D) | ||||||||
Portfolio turnover rate | 20 | %(C) | 54 | % | 44 | % | 101 | %(C) |
Touchstone Focused Equity Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||
Ended | Ended | |||||||||||||||
March 31, | Year Ended | September | ||||||||||||||
2013 | September 30, | 30, | ||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.32 | $ | 9.28 | $ | 10.97 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.05 | (B) | 0.12 | (B) | 0.10 | 0.17 | ||||||||||
Net realized and unrealized gains (losses) on investments | 1.48 | 2.30 | (1.28 | ) | 0.80 | |||||||||||
Total from investment operations | 1.53 | 2.42 | (1.18 | ) | 0.97 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.09 | ) | (0.12 | ) | (0.42 | ) | — | |||||||||
Realized capital gains | — | (0.26 | ) | (0.09 | ) | — | ||||||||||
Total distributions | (0.09 | ) | (0.38 | ) | (0.51 | ) | — | |||||||||
Net asset value at end of period | $ | 12.76 | $ | 11.32 | $ | 9.28 | $ | 10.97 | ||||||||
Total return | 13.61 | %(C) | 26.94 | % | (11.68 | )% | 9.70 | %(C) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 27,460 | $ | 5,191 | $ | 852 | $ | 768 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.80 | %(D) | 0.80 | % | 0.80 | % | 0.80 | %(D) | ||||||||
Gross expenses | 1.13 | %(D) | 1.49 | % | 2.12 | % | 3.66 | %(D) | ||||||||
Net investment income | 0.79 | %(D) | 1.13 | % | 0.50 | % | 0.99 | %(D) | ||||||||
Portfolio turnover rate | 20 | %(C) | 54 | % | 44 | % | 101 | %(C) |
(A) | Represents the period from commencement of operations (December 31, 2009) through September 30, 2010. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
79 |
Financial Highlights
(Continued)
Touchstone Global Real Estate Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.86 | $ | 9.76 | $ | 11.46 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.09 | 0.20 | (B) | 0.35 | 0.36 | |||||||||||
Net realized and unrealized gains (losses) on investments | 1.26 | 2.51 | (1.10 | ) | 1.45 | |||||||||||
Total from investment operations | 1.35 | 2.71 | (0.75 | ) | 1.81 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.30 | ) | (0.16 | ) | (0.48 | ) | (0.35 | ) | ||||||||
Realized capital gains | (0.10 | ) | (0.45 | ) | (0.47 | ) | — | |||||||||
Total distributions | (0.40 | ) | (0.61 | ) | (0.95 | ) | (0.35 | ) | ||||||||
Net asset value at end of period | $ | 12.81 | $ | 11.86 | $ | 9.76 | $ | 11.46 | ||||||||
Total return(C) | 11.61 | %(D) | 29.15 | % | (7.47 | )% | 18.54 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 615 | $ | 486 | $ | 2,038 | $ | 881 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.39 | %(E) | 1.39 | % | 1.39 | % | 1.39 | % | ||||||||
Gross expenses | 3.48 | %(E) | 3.27 | % | 3.55 | % | 4.27 | % | ||||||||
Net investment income | 1.24 | %(E) | 1.87 | % | 2.30 | % | 2.94 | % | ||||||||
Portfolio turnover rate | 43 | %(D) | 94 | % | 85 | % | 107 | % |
Touchstone Global Real Estate Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.90 | $ | 9.80 | $ | 11.50 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.07 | 0.12 | (B) | 0.20 | 0.17 | |||||||||||
Net realized and unrealized gains (losses) on investments | 1.24 | 2.52 | (1.05 | ) | 1.58 | |||||||||||
Total from investment operations | 1.31 | 2.64 | (0.85 | ) | 1.75 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.26 | ) | (0.09 | ) | (0.38 | ) | (0.25 | ) | ||||||||
Realized capital gains | (0.10 | ) | (0.45 | ) | (0.47 | ) | — | |||||||||
Total distributions | (0.36 | ) | (0.54 | ) | (0.85 | ) | (0.25 | ) | ||||||||
Net asset value at end of period | $ | 12.85 | $ | 11.90 | $ | 9.80 | $ | 11.50 | ||||||||
Total return(C) | 11.21 | %(D) | 28.19 | % | (8.20 | )% | 17.75 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 338 | $ | 223 | $ | 116 | $ | 123 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 2.14 | %(E) | 2.14 | % | 2.14 | % | 2.14 | % | ||||||||
Gross expenses | 5.44 | %(E) | 7.79 | % | 11.08 | % | 4.60 | % | ||||||||
Net investment income | 0.49 | %(E) | 1.12 | % | 1.58 | % | 1.60 | % | ||||||||
Portfolio turnover rate | 43 | %(D) | 94 | % | 85 | % | 107 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
See accompanying Notes to Financial Statements.
80 |
Financial Highlights
(Continued)
Touchstone Global Real Estate Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 11.97 | $ | 9.84 | $ | 11.53 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | 0.14 | 0.23 | (B) | 0.32 | 0.28 | |||||||||||
Net investment income | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.24 | 2.54 | (1.06 | ) | 1.58 | |||||||||||
Total from investment operations | 1.38 | 2.77 | (0.74 | ) | 1.86 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.32 | ) | (0.19 | ) | (0.48 | ) | (0.33 | ) | ||||||||
Realized capital gains | (0.10 | ) | (0.45 | ) | (0.47 | ) | — | |||||||||
Total distributions | (0.42 | ) | (0.64 | ) | (0.95 | ) | (0.33 | ) | ||||||||
Net asset value at end of period | $ | 12.93 | $ | 11.97 | $ | 9.84 | $ | 11.53 | ||||||||
Total return | 11.72 | %(C) | 29.53 | % | (7.27 | )% | 18.90 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 226 | $ | 150 | $ | 118 | $ | 129 | ||||||||
Ratio to average net assets: | 1.14 | %(D) | 1.14 | % | 1.14 | % | 1.14 | % | ||||||||
Net expenses | ||||||||||||||||
Gross expenses | 6.11 | %(D) | 7.29 | % | 9.49 | % | 3.62 | % | ||||||||
Net investment income | 1.49 | %(D) | 2.12 | % | 2.59 | % | 2.61 | % | ||||||||
Portfolio turnover rate | 43 | %(C) | 94 | % | 85 | % | 107 | % |
Touchstone Global Real Estate Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.07 | $ | 9.92 | $ | 11.61 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.08 | 0.26 | (B) | 0.33 | 0.29 | |||||||||||
Net realized and unrealized gains (losses) on investments | 1.33 | 2.55 | (1.07 | ) | 1.59 | |||||||||||
Total from investment operations | 1.41 | 2.81 | (0.74 | ) | 1.88 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.33 | ) | (0.21 | ) | (0.48 | ) | (0.27 | ) | ||||||||
Realized capital gains | (0.10 | ) | (0.45 | ) | (0.47 | ) | — | |||||||||
Total distributions | (0.43 | ) | (0.66 | ) | (0.95 | ) | (0.27 | ) | ||||||||
Net asset value at end of period | $ | 13.05 | $ | 12.07 | $ | 9.92 | $ | 11.61 | ||||||||
Total return | 11.87 | %(C) | 29.68 | % | (7.21 | )% | 19.12 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 21,305 | $ | 23,201 | $ | 2,994 | $ | 3,232 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.99 | %(D) | 0.99 | % | 0.99 | % | 0.99 | % | ||||||||
Gross expenses | 1.41 | %(D) | 2.09 | % | 3.15 | % | 3.34 | % | ||||||||
Net investment income | 1.64 | %(D) | 2.27 | % | 2.73 | % | 2.75 | % | ||||||||
Portfolio turnover rate | 43 | %(C) | 94 | % | 85 | % | 107 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
81 |
Financial Highlights
(Continued)
Touchstone International Fixed Income Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 10.68 | $ | 10.49 | $ | 11.38 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.04 | 0.14 | (B) | 0.14 | 0.12 | |||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 0.47 | 0.02 | 1.38 | |||||||||||
Total from investment operations | (0.26 | ) | 0.61 | 0.16 | 1.50 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.02 | ) | (0.38 | ) | (1.00 | ) | (0.12 | ) | ||||||||
Realized capital gains | (0.04 | ) | (0.04 | ) | (0.05 | ) | — | |||||||||
Total distributions | (0.06 | ) | (0.42 | ) | (1.05 | ) | (0.12 | ) | ||||||||
Net asset value at end of period | $ | 10.36 | $ | 10.68 | $ | 10.49 | $ | 11.38 | ||||||||
Total return(C) | (2.51 | )%(D) | 6.24 | % | 1.67 | % | 15.15 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 1,200 | $ | 1,934 | $ | 2,555 | $ | 1,319 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.09 | %(E) | 1.09 | % | 1.09 | % | 1.09 | % | ||||||||
Gross expenses | 2.69 | %(E) | 1.97 | % | 2.18 | % | 2.47 | % | ||||||||
Net investment income | 0.94 | %(E) | 1.36 | % | 2.06 | % | 1.39 | % | ||||||||
Portfolio turnover rate | 27 | %(D) | 56 | % | 64 | % | 160 | % |
Touchstone International Fixed Income Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 10.67 | $ | 10.48 | $ | 11.37 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | — | (F) | 0.06 | (B) | 0.13 | 0.05 | ||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 0.47 | (0.05 | ) | 1.37 | ||||||||||
Total from investment operations | (0.30 | ) | 0.53 | 0.08 | 1.42 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | (F) | (0.30 | ) | (0.92 | ) | (0.05 | ) | ||||||||
Realized capital gains | (0.04 | ) | (0.04 | ) | (0.05 | ) | — | |||||||||
Total distributions | (0.04 | ) | (0.34 | ) | (0.97 | ) | (0.05 | ) | ||||||||
Net asset value at end of period | $ | 10.33 | $ | 10.67 | $ | 10.48 | $ | 11.37 | ||||||||
Total return(C) | (2.79 | )%(D) | 5.37 | % | 0.94 | % | 14.29 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 265 | $ | 432 | $ | 581 | $ | 407 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.84 | %(E) | 1.84 | % | 1.84 | % | 1.84 | % | ||||||||
Gross expenses | 5.21 | %(E) | 4.73 | % | 4.53 | % | 3.16 | % | ||||||||
Net investment income | 0.19 | %(E) | 0.61 | % | 1.14 | % | 0.59 | % | ||||||||
Portfolio turnover rate | 27 | %(D) | 56 | % | 64 | % | 160 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
82 |
Financial Highlights
(Continued)
Touchstone International Fixed Income Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 10.66 | $ | 10.48 | $ | 11.37 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.06 | 0.17 | (B) | 0.20 | (B) | 0.16 | ||||||||||
Net realized and unrealized gains (losses) on investments | (0.30 | ) | 0.46 | (0.01 | ) | 1.37 | ||||||||||
Total from investment operations | (0.24 | ) | 0.63 | 0.19 | 1.53 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.03 | ) | (0.41 | ) | (1.03 | ) | (0.16 | ) | ||||||||
Realized capital gains | (0.04 | ) | (0.04 | ) | (0.05 | ) | — | |||||||||
Total distributions | (0.07 | ) | (0.45 | ) | (1.08 | ) | (0.16 | ) | ||||||||
Net asset value at end of period | $ | 10.35 | $ | 10.66 | $ | 10.48 | $ | 11.37 | ||||||||
Total return | (2.36 | )%(C) | 6.42 | % | 1.97 | % | 15.41 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 485 | $ | 517 | $ | 721 | $ | 193 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.84 | %(D) | 0.84 | % | 0.84 | % | 0.84 | % | ||||||||
Gross expenses | 4.30 | %(D) | 2.91 | % | 2.91 | % | 2.50 | % | ||||||||
Net investment income | 1.19 | %(D) | 1.61 | % | 1.92 | % | 1.52 | % | ||||||||
Portfolio turnover rate | 27 | %(C) | 56 | % | 64 | % | 160 | % |
Touchstone International Fixed Income Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 10.67 | $ | 10.48 | $ | 11.37 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.07 | 0.18 | (B) | 0.23 | 0.17 | |||||||||||
Net realized and unrealized gains (losses) on investments | (0.31 | ) | 0.47 | (0.02 | ) | 1.37 | ||||||||||
Total from investment operations | (0.24 | ) | 0.65 | 0.21 | 1.54 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.03 | ) | (0.42 | ) | (1.05 | ) | (0.17 | ) | ||||||||
Realized capital gains | (0.04 | ) | (0.04 | ) | (0.05 | ) | — | |||||||||
Total distributions | (0.07 | ) | (0.46 | ) | (1.10 | ) | (0.17 | ) | ||||||||
Net asset value at end of period | $ | 10.36 | $ | 10.67 | $ | 10.48 | $ | 11.37 | ||||||||
Total return | (2.32 | )%(C) | 6.69 | % | 2.11 | % | 15.59 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 27,573 | $ | 29,297 | $ | 7,931 | $ | 7,746 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.69 | %(D) | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||
Gross expenses | 0.98 | %(D) | 1.03 | % | 1.41 | % | 1.64 | % | ||||||||
Net investment income | 1.34 | %(D) | 1.76 | % | 2.25 | % | 1.67 | % | ||||||||
Portfolio turnover rate | 27 | %(C) | 56 | % | 64 | % | 160 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
83 |
Financial Highlights
(Continued)
Touchstone Merger Arbitrage Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended | |||||||||||
2013 | September 30, | |||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 10.65 | $ | 10.02 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment loss | (0.01 | ) | (0.09 | )(B) | — | (C) | ||||||
Net realized and unrealized gains on investments | 0.31 | 0.73 | 0.02 | |||||||||
Total from investment operations | 0.30 | 0.64 | 0.02 | |||||||||
Distributions from: | — | (C) | ||||||||||
Net investment income | — | — | ||||||||||
Realized capital gains | (0.11 | ) | (0.01 | ) | — | |||||||
Total distributions | (0.11 | ) | (0.01 | ) | — | |||||||
Net asset value at end of period | $ | 10.84 | $ | 10.65 | $ | 10.02 | ||||||
Total return(D) | 2.85 | %(E) | 6.35 | % | 0.30 | %(E) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 209,775 | $ | 150,148 | $ | 260 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend expense on securities sold short)(F) | 2.24 | %(G) | 1.96 | % | 3.33 | %(G) | ||||||
Gross expenses (including dividend expense on securities sold short)(H) | 2.23 | %(G) | 1.97 | % | 28.67 | %(G) | ||||||
Net investment loss | (0.20 | )%(G) | (0.90 | )% | (1.97 | )%(G) | ||||||
Portfolio turnover rate | 157 | %(E) | 307 | % | 311 | %(E) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | The ratio of net expenses to average net assets excluding dividend expense on securities sold short is 1.65%, 1.65% and 1.69% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
(G) | Annualized. |
(H) | The ratio of gross expenses to average net assets excluding dividend expense on securities sold short is 1.64%, 1.66% and 27.03% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
See accompanying Notes to Financial Statements.
84 |
Financial Highlights
(Continued)
Touchstone Merger Arbitrage Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended | |||||||||||
2013 | September 30, | |||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 10.54 | $ | 10.01 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment loss | (0.03 | ) | (0.17 | )(B) | (0.01 | ) | ||||||
Net realized and unrealized gains on investments | 0.29 | 0.71 | 0.02 | |||||||||
Total from investment operations | 0.26 | 0.54 | 0.01 | |||||||||
Distributions from: | ||||||||||||
Net investment income | — | — | (C) | — | ||||||||
Realized capital gains | (0.11 | ) | (0.01 | ) | — | |||||||
Total distributions | (0.11 | ) | (0.01 | ) | — | |||||||
Net asset value at end of period | $ | 10.69 | $ | 10.54 | $ | 10.01 | ||||||
Total return(D) | 2.40 | %(E) | 5.56 | % | 0.10 | %(E) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 40,158 | $ | 25,739 | $ | 254 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend expense on securities sold short)(F) | 3.00 | %(G) | 2.74 | % | 4.23 | %(G) | ||||||
Gross expenses (including dividend expense on securities sold short)(H) | 2.99 | %(G) | 2.75 | % | 29.58 | %(G) | ||||||
Net investment loss | (0.97 | )%(G) | (1.68 | )% | (2.74 | )%(G) | ||||||
Portfolio turnover rate | 157 | %(E) | 307 | % | 311 | %(E) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | The ratio of net expenses to average net assets excluding dividend expense on securities sold short is 2.41%, 2.43% and 2.43% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
(G) | Annualized. |
(H) | The ratio of gross expenses to average net assets excluding dividend expense on securities sold short is 2.40%, 2.44% and 27.78% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
See accompanying Notes to Financial Statements.
85 |
Financial Highlights
(Continued)
Touchstone Merger Arbitrage Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 10.68 | $ | 10.02 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | — | (B) | (0.07 | )(C) | (0.01 | ) | ||||||
Net realized and unrealized gains on investments | 0.31 | 0.74 | 0.03 | |||||||||
Total from investment operations | 0.31 | 0.67 | 0.02 | |||||||||
Distributions from: | ||||||||||||
Net investment income | — | — | (B) | — | ||||||||
Realized capital gains | (0.11 | ) | (0.01 | ) | — | |||||||
Total distributions | (0.11 | ) | (0.01 | ) | — | |||||||
Net asset value at end of period | $ | 10.88 | $ | 10.68 | $ | 10.02 | ||||||
Total return | 2.93 | %(D) | 6.75 | % | 0.20 | %(D) | ||||||
Net assets at end of period (000's) | $ | 115,451 | $ | 90,741 | $ | 1,160 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend expense on securities sold short)(E) | 2.01 | %(F) | 1.68 | % | 2.74 | %(F) | ||||||
Gross expenses (including dividend expense on securities sold short)(G) | 2.00 | %(F) | 1.70 | % | 8.22 | %(F) | ||||||
Net investment income (loss) | 0.03 | %(F) | (0.62 | )% | (1.65 | )%(F) | ||||||
Portfolio turnover rate | 157 | %(D) | 307 | % | 311 | %(D) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | Less than $0.005 per share. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend expense on securities sold short is 1.42%, 1.37% and 1.43% for the six months ended March 31, 2013, year ended September 2012 and for the period ended 2011, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend expense on securities sold short is 1.41%, 1.39% and 6.91% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
See accompanying Notes to Financial Statements.
86 |
Financial Highlights
(Continued)
Touchstone Merger Arbitrage Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended | |||||||||||
2013 | September 30, | |||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 10.69 | $ | 10.03 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | — | (B) | (0.06 | )(C) | (0.02 | ) | ||||||
Net realized and unrealized gains on investments | 0.32 | 0.73 | 0.05 | |||||||||
Total from investment operations | 0.32 | 0.67 | 0.03 | |||||||||
Distributions from: | ||||||||||||
Net investment income | — | — | (B) | — | ||||||||
Realized capital gains | (0.11 | ) | (0.01 | ) | — | |||||||
Total distributions | (0.11 | ) | (0.01 | ) | — | |||||||
Net asset value at end of period | $ | 10.90 | $ | 10.69 | $ | 10.03 | ||||||
Total return | 3.02 | %(D) | 6.75 | % | 0.30 | %(D) | ||||||
Net assets at end of period (000's) | $ | 109,585 | $ | 79,164 | $ | 5,016 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend expense on securities sold short)(E) | 1.87 | %(F) | 1.59 | % | 1.86 | %(F) | ||||||
Gross expenses (including dividend expense on securities sold short)(G) | 1.86 | %(F) | 1.62 | % | 4.83 | %(F) | ||||||
Net investment income (loss) | 0.16 | %(F) | (0.53 | )% | (1.13 | )%(F) | ||||||
Portfolio turnover rate | 157 | %(D) | 307 | % | 311 | %(D) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | Less than $0.005 per share. |
(C) | The net investment income per share is based on average shares outstanding for the period. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend expense on securities sold short is 1.28, 1.28% and 1.28% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend expense on securities sold short is 1.27, 1.31% and 4.25% for the six months ended March 31, 2013, year ended September 2012 and for the period ended September 2011, respectively. |
See accompanying Notes to Financial Statements.
87 |
Financial Highlights
(Continued)
Touchstone Mid Cap Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.55 | $ | 13.16 | $ | 12.67 | $ | 11.20 | $ | 13.07 | $ | 17.86 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.19 | (A) | 0.10 | (A) | (0.02 | ) | 0.29 | 0.04 | (0.02 | ) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 3.40 | 3.31 | 0.51 | 1.24 | (1.85 | ) | (4.60 | ) | ||||||||||||||||
Total from investment operations | 3.59 | 3.41 | 0.49 | 1.53 | (1.81 | ) | (4.62 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.02 | ) | — | (0.06 | ) | (0.03 | ) | — | ||||||||||||||
Realized capital gains | — | — | — | — | (0.03 | ) | (0.17 | ) | ||||||||||||||||
Total distributions | (0.31 | ) | (0.02 | ) | — | (0.06 | ) | (0.06 | ) | (0.17 | ) | |||||||||||||
Net asset value at end of period | $ | 19.83 | $ | 16.55 | $ | 13.16 | $ | 12.67 | $ | 11.20 | $ | 13.07 | ||||||||||||
Total return(B) | 21.97 | %(C) | 25.95 | % | 3.87 | % | 13.72 | % | (13.81 | )% | (26.11 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 12,606 | $ | 905 | $ | 698 | $ | 685 | $ | 453 | $ | 159 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.21 | %(D) | 1.21 | % | 1.21 | % | 1.21 | % | 1.15 | % | 1.15 | % | ||||||||||||
Gross expenses | 1.64 | %(D) | 3.50 | % | 3.05 | % | 2.84 | % | 3.84 | % | 4.09 | % | ||||||||||||
Net investment income (loss) | 2.08 | %(D) | 0.66 | % | (0.02 | )% | 0.34 | % | 0.39 | % | (0.16 | )% | ||||||||||||
Portfolio turnover rate | 12 | %(C) | 152 | % | 97 | % | 132 | % | 187 | % | 157 | % |
Touchstone Mid Cap Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.21 | $ | 12.96 | $ | 12.58 | $ | 11.19 | $ | 13.12 | $ | 17.84 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.12 | (A) | (0.01 | )(A) | (0.07 | ) | (0.04 | ) | (0.03 | ) | (0.15 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 3.33 | 3.26 | 0.45 | 1.43 | (1.87 | ) | (4.40 | ) | ||||||||||||||||
Total from investment operations | 3.45 | 3.25 | 0.38 | 1.39 | (1.90 | ) | (4.55 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.23 | ) | — | — | — | — | — | |||||||||||||||||
Realized capital gains | — | — | — | — | (0.03 | ) | (0.17 | ) | ||||||||||||||||
Total distributions | (0.23 | ) | — | — | — | (0.03 | ) | (0.17 | ) | |||||||||||||||
Net asset value at end of period | $ | 19.43 | $ | 16.21 | $ | 12.96 | $ | 12.58 | $ | 11.19 | $ | 13.12 | ||||||||||||
Total return(B) | 21.49 | %(C) | 25.08 | % | 3.02 | % | 12.42 | % | (14.47 | )% | (25.74 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 4,914 | $ | 962 | $ | 476 | $ | 249 | $ | 169 | $ | 30 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.96 | %(D) | 1.96 | % | 1.96 | % | 1.94 | % | 1.90 | % | 1.90 | % | ||||||||||||
Gross expenses | 2.85 | %(D) | 4.62 | % | 4.95 | % | 4.57 | % | 6.99 | % | 31.40 | % | ||||||||||||
Net investment income (loss) | 1.33 | %(D) | (0.09 | )% | (0.80 | )% | (0.40 | )% | (0.38 | )% | (0.91 | )% | ||||||||||||
Portfolio turnover rate | 12 | %(C) | 152 | % | 97 | % | 132 | % | 187 | % | 157 | % |
(A) | The net investment income per share is based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
Financial Highlights
88 |
Financial Highlights
(Continued)
Touchstone Mid Cap Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.60 | $ | 13.17 | $ | 12.68 | $ | 11.25 | $ | 13.14 | $ | 17.91 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.21 | (A) | 0.15 | (A) | 0.05 | 0.08 | 0.07 | 0.01 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 3.41 | 3.31 | 0.47 | 1.44 | (1.88 | ) | (4.61 | ) | ||||||||||||||||
Total from investment operations | 3.62 | 3.46 | 0.52 | 1.52 | (1.81 | ) | (4.60 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.03 | ) | (0.03 | ) | (0.09 | ) | (0.05 | ) | — | |||||||||||||
Realized capital gains | — | — | — | — | (0.03 | ) | (0.17 | ) | ||||||||||||||||
Total distributions | (0.32 | ) | (0.03 | ) | (0.03 | ) | (0.09 | ) | (0.08 | ) | (0.17 | ) | ||||||||||||
Net asset value at end of period | $ | 19.90 | $ | 16.60 | $ | 13.17 | $ | 12.68 | $ | 11.25 | $ | 13.14 | ||||||||||||
Total return | 22.15 | %(B) | 26.29 | % | 4.10 | % | 13.58 | % | (13.68 | )% | (25.92 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 56,696 | $ | 47,419 | $ | 77,785 | $ | 123,493 | $ | 168,313 | $ | 422,356 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.93 | %(C) | 0.92 | % | 0.96 | % | 0.94 | % | 0.90 | % | 0.90 | % | ||||||||||||
Gross expenses | 1.08 | %(C) | 1.08 | % | 1.06 | % | 1.07 | % | 1.05 | % | 1.03 | % | ||||||||||||
Net investment income | 2.36 | %(C) | 0.95 | % | 0.26 | % | 0.71 | % | 0.61 | % | 0.09 | % | ||||||||||||
Portfolio turnover rate | 12 | %(B) | 152 | % | 97 | % | 132 | % | 187 | % | 157 | % |
Touchstone Mid Cap Fund—Class Z |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.45 | $ | 13.08 | $ | 12.59 | $ | 11.18 | $ | 13.05 | $ | 17.85 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.19 | (A) | 0.10 | (A) | — | (D) | 0.02 | 0.03 | (0.08 | ) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 3.36 | 3.28 | 0.49 | 1.45 | (1.84 | ) | (4.55 | ) | ||||||||||||||||
Total from investment operations | 3.55 | 3.38 | 0.49 | 1.47 | (1.81 | ) | (4.63 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.01 | ) | — | (0.06 | ) | (0.03 | ) | — | ||||||||||||||
Realized capital gains | — | — | — | — | (0.03 | ) | (0.17 | ) | ||||||||||||||||
Total distributions | (0.32 | ) | (0.01 | ) | — | (0.06 | ) | (0.06 | ) | (0.17 | ) | |||||||||||||
Net asset value at end of period | $ | 19.68 | $ | 16.45 | $ | 13.08 | $ | 12.59 | $ | 11.18 | $ | 13.05 | ||||||||||||
Total return | 21.94 | %(B) | 25.89 | % | 3.89 | % | 13.20 | % | (13.83 | )% | (26.18 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 9,609 | $ | 267 | $ | 934 | $ | 652 | $ | 1,814 | $ | 3,267 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.21 | %(C) | 1.21 | % | 1.21 | % | 1.19 | % | 1.15 | % | 1.15 | % | ||||||||||||
Gross expenses | 1.72 | %(C) | 3.67 | % | 3.68 | % | 2.14 | % | 2.22 | % | 1.48 | % | ||||||||||||
Net investment income (loss) | 2.08 | %(C) | 0.66 | % | (0.09 | )% | 0.45 | % | 0.39 | % | (0.27 | )% | ||||||||||||
Portfolio turnover rate | 12 | %(B) | 152 | % | 97 | % | 132 | % | 187 | % | 157 | % |
(A) | The net investment income per share is 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.
89 |
Financial Highlights
(Continued)
Touchstone Mid Cap Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout The Period |
Six Months | Period | |||||||
Ended | Ended | |||||||
March 31, | September | |||||||
2013 | 30, | |||||||
(Unaudited) | 2012(A) | |||||||
Net asset value at beginning of period | $ | 16.61 | $ | 15.36 | ||||
Income from investment operations: | ||||||||
Net investment income | 0.21 | (B) | 0.10 | (B) | ||||
Net realized and unrealized gains on investments | 3.41 | 1.15 | ||||||
Total from investment operations | 3.62 | 1.25 | ||||||
Distributions from: | ||||||||
Net investment income | (0.33 | ) | — | |||||
Net asset value at end of period | $ | 19.90 | $ | 16.61 | ||||
Total return | 22.16 | %(C) | 8.14 | %(C) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 36,053 | $ | 12,231 | ||||
Ratio to average net assets: | ||||||||
Net expenses | 0.89 | %(D) | 0.89 | %(D) | ||||
Gross expenses | 1.12 | %(D) | 1.38 | %(D) | ||||
Net investment income | 2.40 | %(D) | 0.98 | %(D) | ||||
Portfolio turnover rate | 12 | %(C) | 152 | % |
(A) | Represents the period from commencement of operations (January 27, 2012) through September 30, 2012. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
90 |
Financial Highlights
(Continued)
Touchstone Mid Cap Value Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.98 | $ | 10.86 | $ | 11.76 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.06 | 0.09 | 0.09 | 0.12 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.11 | 2.78 | (0.72 | ) | 1.74 | |||||||||||
Total from investment operations | 2.17 | 2.87 | (0.63 | ) | 1.86 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.06 | ) | (0.09 | ) | (0.11 | ) | (0.10 | ) | ||||||||
Realized capital gains | (0.15 | ) | (0.66 | ) | (0.16 | ) | — | |||||||||
Total distributions | (0.21 | ) | (0.75 | ) | (0.27 | ) | (0.10 | ) | ||||||||
Net asset value at end of period | $ | 14.94 | $ | 12.98 | $ | 10.86 | $ | 11.76 | ||||||||
Total return(B) | 16.89 | %(C) | 27.55 | % | (5.72 | )% | 18.70 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 4,661 | $ | 3,409 | $ | 2,364 | $ | 345 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.29 | %(D) | 1.29 | % | 1.29 | % | 1.29 | % | ||||||||
Gross expenses | 1.81 | %(D) | 1.97 | % | 2.07 | % | 3.07 | % | ||||||||
Net investment income | 0.84 | %(D) | 0.77 | % | 0.86 | % | 1.07 | % | ||||||||
Portfolio turnover rate | 35 | %(C) | 42 | % | 59 | % | 45 | % |
Touchstone Mid Cap Value Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 12.92 | $ | 10.82 | $ | 11.74 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | — | (E) | — | 0.03 | 0.03 | |||||||||||
Net realized and unrealized gains (losses) on investments | 2.09 | 2.77 | (0.75 | ) | 1.75 | |||||||||||
Total from investment operations | 2.09 | 2.77 | (0.72 | ) | 1.78 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | — | (E) | (0.01 | ) | (0.04 | ) | (0.04 | ) | ||||||||
Realized capital gains | (0.15 | ) | (0.66 | ) | (0.16 | ) | — | |||||||||
Total distributions | (0.15 | ) | (0.67 | ) | (0.20 | ) | (0.04 | ) | ||||||||
Net asset value at end of period | $ | 14.86 | $ | 12.92 | $ | 10.82 | $ | 11.74 | ||||||||
Total return(B) | 16.38 | %(C) | 26.64 | % | (6.45 | )% | 17.88 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 507 | $ | 292 | $ | 204 | $ | 132 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 2.04 | %(D) | 2.04 | % | 2.04 | % | 2.04 | % | ||||||||
Gross expenses | 4.34 | %(D) | 7.90 | % | 7.74 | % | 3.86 | % | ||||||||
Net investment income | 0.09 | %(D) | 0.02 | % | 0.10 | % | 0.27 | % | ||||||||
Portfolio turnover rate | 35 | %(C) | 42 | % | 59 | % | 45 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
91 |
Financial Highlights
(Continued)
Touchstone Mid Cap Value Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 13.03 | $ | 10.89 | $ | 11.79 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.07 | 0.11 | 0.12 | 0.14 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.11 | 2.81 | (0.72 | ) | 1.76 | |||||||||||
Total from investment operations | 2.18 | 2.92 | (0.60 | ) | 1.90 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.07 | ) | (0.12 | ) | (0.14 | ) | (0.11 | ) | ||||||||
Realized capital gains | (0.15 | ) | (0.66 | ) | (0.16 | ) | — | |||||||||
Total distributions | (0.22 | ) | (0.78 | ) | (0.30 | ) | (0.11 | ) | ||||||||
Net asset value at end of period | $ | 14.99 | $ | 13.03 | $ | 10.89 | $ | 11.79 | ||||||||
Total return | 16.96 | %(B) | 27.97 | % | (5.51 | )% | 19.07 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 19,715 | $ | 13,785 | $ | 4,685 | $ | 589 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 1.04 | %(C) | 1.04 | % | 1.04 | % | 1.04 | % | ||||||||
Gross expenses | 1.35 | %(C) | 1.46 | % | 1.58 | % | 3.19 | % | ||||||||
Net investment income | 1.09 | %(C) | 1.02 | % | 1.20 | % | 1.40 | % | ||||||||
Portfolio turnover rate | 35 | %(B) | 42 | % | 59 | % | 45 | % |
Touchstone Mid Cap Value Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 13.07 | $ | 10.92 | $ | 11.83 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.08 | 0.13 | 0.16 | 0.10 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 2.12 | 2.82 | (0.75 | ) | 1.82 | |||||||||||
Total from investment operations | 2.20 | 2.95 | (0.59 | ) | 1.92 | |||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.08 | ) | (0.14 | ) | (0.16 | ) | (0.09 | ) | ||||||||
Realized capital gains | (0.15 | ) | (0.66 | ) | (0.16 | ) | — | |||||||||
Total distributions | (0.23 | ) | (0.80 | ) | (0.32 | ) | (0.09 | ) | ||||||||
Net asset value at end of period | $ | 15.04 | $ | 13.07 | $ | 10.92 | $ | 11.83 | ||||||||
Total return | 17.07 | %(B) | 28.17 | % | (5.41 | )% | 19.25 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 111,574 | $ | 75,240 | $ | 39,808 | $ | 39,509 | ||||||||
Ratio to average net assets: | ||||||||||||||||
Net expenses | 0.89 | %(C) | 0.89 | % | 0.89 | % | 0.89 | % | ||||||||
Gross expenses | 1.08 | %(C) | 1.12 | % | 1.15 | % | 1.93 | % | ||||||||
Net investment income | 1.24 | %(C) | 1.17 | % | 1.21 | % | 1.66 | % | ||||||||
Portfolio turnover rate | 35 | %(B) | 42 | % | 59 | % | 45 | % |
(A) | The Fund commenced operations on October 1, 2009. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
92 |
Financial Highlights
(Continued)
Touchstone Premium Yield Equity Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2013 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.11 | $ | 6.76 | $ | 6.48 | $ | 5.93 | $ | 7.56 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.12 | 0.24 | 0.21 | 0.21 | 0.22 | 0.33 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.59 | 1.36 | 0.28 | 0.54 | (1.64 | ) | (2.44 | ) | ||||||||||||||||
Total from investment operations | 0.71 | 1.60 | 0.49 | 0.75 | (1.42 | ) | (2.11 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.24 | ) | (0.21 | ) | (0.20 | ) | (0.21 | ) | (0.32 | ) | ||||||||||||
Return of capital | — | (0.01 | ) | — | — | — | — | |||||||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.11 | ) | (0.25 | ) | (0.21 | ) | (0.20 | ) | (0.21 | ) | (0.33 | ) | ||||||||||||
Net asset value at end of period | $ | 8.71 | $ | 8.11 | $ | 6.76 | $ | 6.48 | $ | 5.93 | $ | 7.56 | ||||||||||||
Total return(B) | 8.89 | %(C) | 23.98 | % | 7.43 | % | 12.82 | % | (18.40 | )% | (21.48 | )%(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 88,968 | $ | 68,780 | $ | 28,739 | $ | 22,441 | $ | 19,879 | $ | 19,411 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.20 | %(D) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | %(D) | ||||||||||||
Gross expenses | 1.24 | %(D) | 1.30 | % | 1.35 | % | 1.40 | % | 1.55 | % | 1.53 | %(D) | ||||||||||||
Net investment income | 2.91 | %(D) | 3.26 | % | 3.02 | % | 3.30 | % | 3.97 | % | 4.68 | %(D) | ||||||||||||
Portfolio turnover rate | 8 | %(C) | 16 | % | 54 | % | 29 | % | 30 | % | 181 | %(C) |
Touchstone Premium Yield Equity Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2013 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.10 | $ | 6.76 | $ | 6.49 | $ | 5.93 | $ | 7.56 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.18 | 0.16 | 0.16 | 0.10 | 0.29 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.59 | 1.35 | 0.27 | 0.55 | (1.55 | ) | (2.45 | ) | ||||||||||||||||
Total from investment operations | 0.68 | 1.53 | 0.43 | 0.71 | (1.45 | ) | (2.16 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.18 | ) | (0.16 | ) | (0.15 | ) | (0.18 | ) | (0.27 | ) | ||||||||||||
Return of capital | — | (0.01 | ) | — | — | — | — | |||||||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.08 | ) | (0.19 | ) | (0.16 | ) | (0.15 | ) | (0.18 | ) | (0.28 | ) | ||||||||||||
Net asset value at end of period | $ | 8.70 | $ | 8.10 | $ | 6.76 | $ | 6.49 | $ | 5.93 | $ | 7.56 | ||||||||||||
Total return(B) | 8.50 | %(C) | 22.93 | % | 6.60 | % | 12.11 | % | (18.96 | )% | (21.95 | )%(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 20,077 | $ | 15,680 | $ | 7,499 | $ | 6,870 | $ | 3,319 | $ | 567 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.95 | %(D) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.94 | %(D) | ||||||||||||
Gross expenses | 2.05 | %(D) | 2.14 | % | 2.28 | % | 2.23 | % | 3.08 | % | 5.31 | %(D) | ||||||||||||
Net investment income | 2.16 | %(D) | 2.51 | % | 2.27 | % | 2.60 | % | 2.80 | % | 3.93 | %(D) | ||||||||||||
Portfolio turnover rate | 8 | %(C) | 16 | % | 54 | % | 29 | % | 30 | % | 181 | %(C) |
(A) | Represents the period from commencement of operations (December 3, 2007) through September 30, 2008. | |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. | |
(C) | Not annualized. | |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
93 |
Financial Highlights
(Continued)
Touchstone Premium Yield Equity Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2013 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.10 | $ | 6.75 | $ | 6.47 | $ | 5.92 | $ | 7.55 | $ | 8.30 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.27 | 0.20 | 0.22 | 0.22 | 0.04 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.59 | 1.35 | 0.30 | 0.54 | (1.62 | ) | (0.73 | ) | ||||||||||||||||
Total from investment operations | 0.72 | 1.62 | 0.50 | 0.76 | (1.40 | ) | (0.69 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.26 | ) | (0.22 | ) | (0.21 | ) | (0.23 | ) | (0.05 | ) | ||||||||||||
Return of capital | — | (0.01 | ) | — | — | — | — | |||||||||||||||||
Realized capital gains | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.12 | ) | (0.27 | ) | (0.22 | ) | (0.21 | ) | (0.23 | ) | (0.06 | ) | ||||||||||||
Net asset value at end of period | $ | 8.70 | $ | 8.10 | $ | 6.75 | $ | 6.47 | $ | 5.92 | $ | 7.55 | ||||||||||||
Total return | 9.03 | %(B) | 24.31 | % | 7.67 | % | 13.14 | % | (18.22 | )% | (8.37 | )%(B) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 58,247 | $ | 33,185 | $ | 3,980 | $ | 11,540 | $ | 551 | $ | 2 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.95 | %(C) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.90 | %(C) | ||||||||||||
Gross expenses | 1.05 | %(C) | 1.18 | % | 1.25 | % | 1.53 | % | 13.70 | % | 453.70 | %(C) | ||||||||||||
Net investment income | 3.16 | %(C) | 3.51 | % | 3.16 | % | 3.77 | % | 2.97 | % | 3.16 | %(C) | ||||||||||||
Portfolio turnover rate | 8 | %(B) | 16 | % | 54 | % | 29 | % | 30 | % | 181 | %(B) |
(A) | Represents the period from commencement of operations (August 12, 2008) through September 30, 2008. | |
(B) | Not annualized. | |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
94 |
Financial Highlights
(Continued)
Touchstone Sands Capital Select Growth Fund—Class A
Selected Data for a Share Outstanding
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended | |||||||||||
2013 | September 30, | |||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 12.65 | $ | 9.39 | $ | 9.39 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment loss | — | (B) | (0.09 | )(C) | (0.03 | ) | ||||||
Net realized and unrealized gains on investments | 0.74 | 3.35 | 0.03 | |||||||||
Total from investment operations | 0.74 | 3.26 | — | |||||||||
Net asset value at end of period | $ | 13.39 | $ | 12.65 | $ | 9.39 | ||||||
Total return(D) | 5.85 | %(E) | 34.72 | % | 0.00 | %(E) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 326,006 | $ | 186,384 | $ | 21,211 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses | 1.30 | %(F) | 1.37 | % | 1.45 | %(F) | ||||||
Gross expenses | 1.30 | %(F) | 1.47 | % | 1.64 | %(F) | ||||||
Net investment loss | (0.31 | )%(F) | (0.74 | )% | (0.94 | )%(F) | ||||||
Portfolio turnover rate | 20 | %(E) | 19 | % | 19 | %(E) |
Touchstone Sands Capital Select Growth Fund—Class C
Selected Data for a Share Outstanding
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, | Period Ended | |||||||||||
2013 | September 30, | |||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 12.47 | $ | 9.33 | $ | 9.39 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment loss | (0.04 | ) | (0.17 | )(C) | (0.06 | ) | ||||||
Net realized and unrealized gains on investments | 0.72 | 3.31 | — | (B) | ||||||||
Total from investment operations | 0.68 | 3.14 | (0.06 | ) | ||||||||
Net asset value at end of period | $ | 13.15 | $ | 12.47 | $ | 9.33 | ||||||
Total return(D) | 5.45 | %(E) | 33.66 | % | (0.64 | )%(E) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 161,400 | $ | 88,931 | $ | 8,660 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses | 2.05 | %(F) | 2.12 | % | 2.20 | %(F) | ||||||
Gross expenses | 2.05 | %(F) | 2.22 | % | 2.56 | %(F) | ||||||
Net investment loss | (1.06 | )%(F) | (1.49 | )% | (1.69 | )%(F) | ||||||
Portfolio turnover rate | 20 | %(E) | 19 | % | 19 | %(E) |
(A) | Represents the period from commencement of operations (November 15, 2010) through September 30, 2011. | |
(B) | Less than $0.005 per share. | |
(C) | The net investment income per share is based on average shares outstanding for the period. | |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. | |
(E) | Not annualized. | |
(F) | Annualized. |
See accompanying Notes to Financial Statements.
95 |
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, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 12.90 | $ | 9.56 | $ | 8.83 | $ | 7.34 | $ | 6.86 | $ | 9.15 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | — | (A) | (0.06 | )(B) | (0.14 | ) | (0.07 | ) | (0.03 | ) | (0.06 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.77 | 3.40 | 0.87 | 1.56 | 0.51 | (2.23 | ) | |||||||||||||||||
Total from investment operations | 0.77 | 3.34 | 0.73 | 1.49 | 0.48 | (2.29 | ) | |||||||||||||||||
Net asset value at end of period | $ | 13.67 | $ | 12.90 | $ | 9.56 | $ | 8.83 | $ | 7.34 | $ | 6.86 | ||||||||||||
Total return | 5.97 | %(C) | 34.94 | % | 8.14 | % | 20.44 | % | 7.00 | % | (25.03 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 1,548,302 | $ | 1,215,124 | $ | 392,464 | $ | 120,333 | $ | 82,918 | $ | 130,920 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.05 | %(D) | 1.11 | % | 1.20 | % | 1.22 | % | 0.98 | % | 1.16 | % | ||||||||||||
Gross expenses | 1.05 | %(D) | 1.18 | % | 1.23 | % | 1.28 | % | 1.05 | % | 1.19 | % | ||||||||||||
Net investment loss | (0.06 | )%(D) | (0.49 | )% | (0.68 | )% | (0.52 | )% | (0.48 | )% | (0.59 | )% | ||||||||||||
Portfolio turnover rate | 20 | %(C) | 19 | % | 19 | % | 27 | % | 50 | % | 39 | % |
Touchstone Sands Capital Select Growth Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 12.65 | $ | 9.39 | $ | 8.70 | $ | 7.24 | $ | 6.79 | $ | 9.08 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.01 | ) | (0.08 | )(B) | (0.07 | ) | (0.04 | ) | (0.04 | ) | (0.06 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.75 | 3.34 | 0.76 | 1.50 | 0.49 | (2.23 | ) | |||||||||||||||||
Total from investment operations | 0.74 | 3.26 | 0.69 | 1.46 | 0.45 | (2.29 | ) | |||||||||||||||||
Net asset value at end of period | $ | 13.39 | $ | 12.65 | $ | 9.39 | $ | 8.70 | $ | 7.24 | $ | 6.79 | ||||||||||||
Total return | 5.85 | %(C) | 34.72 | % | 7.93 | % | 20.17 | % | 6.63 | % | (25.22 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 2,280,591 | $ | 1,836,957 | $ | 911,849 | $ | 540,329 | $ | 333,200 | $ | 363,955 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.27 | %(D) | 1.32 | % | 1.42 | % | 1.47 | % | 1.23 | % | 1.41 | % | ||||||||||||
Gross expenses | 1.28 | %(D) | 1.39 | % | 1.52 | % | 1.53 | % | 1.32 | % | 1.43 | % | ||||||||||||
Net investment loss | (0.29 | )%(D) | (0.70 | )% | (0.93 | )% | (0.79 | )% | (0.74 | )% | (0.85 | )% | ||||||||||||
Portfolio turnover rate | 20 | %(C) | 19 | % | 19 | % | 27 | % | 50 | % | 39 | % |
(A) | Less than $0.005 per share. | |
(B) | The net investment income per share is based on average shares outstanding for the period. | |
(C) | Not annualized. | |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
96 |
Financial Highlights
(Continued)
Touchstone Short Duration Fixed Income Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
March 31, | September | |||||||||||||||||||
2013 | Year Ended September 30, | 30, | ||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 9.82 | $ | 9.81 | $ | 9.97 | $ | 9.95 | $ | 9.79 | ||||||||||
Income (loss) from investment operations: | 0.18 | (B) | 0.23 | 0.32 | 0.13 | |||||||||||||||
Net investment income | 0.06 | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.02 | ) | 0.06 | (0.10 | ) | 0.03 | 0.16 | |||||||||||||
Total from investment operations | 0.04 | 0.24 | 0.13 | 0.35 | 0.29 | |||||||||||||||
Distributions from: | ||||||||||||||||||||
Net Investment Income | (0.09 | ) | (0.23 | ) | (0.29 | ) | (0.33 | ) | (0.13 | ) | ||||||||||
Net asset value at end of period | $ | 9.77 | $ | 9.82 | $ | 9.81 | $ | 9.97 | $ | 9.95 | ||||||||||
Total return | 0.39 | %(C) | 2.49 | % | 1.37 | % | 3.61 | % | 3.02 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000's) | $ | 54,131 | $ | 54,904 | $ | 1,164 | $ | 767 | $ | 592 | ||||||||||
Ratio to average net assets: | 0.49 | %(D) | 0.49 | % | 0.49 | % | 0.49 | % | 0.48 | %(D) | ||||||||||
Net expenses | ||||||||||||||||||||
Gross expenses | 0.53 | %(D) | 0.70 | % | 1.43 | % | 3.98 | % | 1.49 | %(D) | ||||||||||
Net investment income | 1.26 | %(D) | 1.84 | % | 2.31 | % | 3.22 | % | 3.03 | %(D) | ||||||||||
Portfolio turnover rate | 31 | %(C) | 42 | % | 48 | % | 45 | % | 79 | % |
Touchstone Short Duration Fixed Income Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.83 | $ | 9.81 | $ | 9.96 | $ | 9.94 | $ | 9.59 | $ | 9.81 | ||||||||||||
Income (loss) from investment operations: | 0.16 | (B) | 0.21 | 0.29 | 0.32 | 0.45 | ||||||||||||||||||
Net investment income | 0.05 | |||||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.02 | ) | 0.07 | (0.09 | ) | 0.04 | 0.35 | (0.22 | ) | |||||||||||||||
Total from investment operations | 0.03 | 0.23 | 0.12 | 0.33 | 0.67 | 0.23 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.21 | ) | (0.27 | ) | (0.31 | ) | (0.32 | ) | (0.45 | ) | ||||||||||||
Net asset value at end of period | $ | 9.78 | $ | 9.83 | $ | 9.81 | $ | 9.96 | $ | 9.94 | $ | 9.59 | ||||||||||||
Total return | 0.27 | %(C) | 2.34 | % | 1.22 | % | 3.36 | % | 7.13 | % | 2.36 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 33,559 | $ | 37,312 | $ | 40,111 | $ | 43,411 | $ | 43,749 | $ | 46,989 | ||||||||||||
Ratio to average net assets: | 0.74 | %(D) | 0.74 | % | 0.74 | % | 0.74 | % | 0.74 | % | 0.74 | % | ||||||||||||
Net expenses | ||||||||||||||||||||||||
Gross expenses | 0.90 | %(D) | 0.94 | % | 0.96 | % | 1.04 | % | 0.96 | % | 0.94 | % | ||||||||||||
Net investment income | 1.01 | %(D) | 1.60 | % | 2.12 | % | 2.94 | % | 3.24 | % | 4.60 | % | ||||||||||||
Portfolio turnover rate | 31 | %(C) | 42 | % | 48 | % | 45 | % | 79 | % | 25 | % |
(A) | Represents the period from commencement of operations (May 4, 2009) through September 30, 2009. | |
(B) | The net investment income per share is based on average shares outstanding for the period. | |
(C) | Not annualized. | |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
97 |
Financial Highlights
Financial Highlights
(Continued)
Touchstone Small Cap Core Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 16.02 | $ | 11.94 | $ | 11.62 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | 0.17 | 0.05 | (0.02 | ) | 0.02 | |||||||||||
Net realized and unrealized gains on investments | 2.83 | 4.20 | 0.35 | 1.60 | ||||||||||||
Total from investment operations | 3.00 | 4.25 | 0.33 | 1.62 | ||||||||||||
Distributions from: | — | (B) | ||||||||||||||
Net investment income | (0.18 | ) | (0.01 | ) | — | |||||||||||
Realized capital gains | (0.12 | ) | (0.17 | ) | — | (B) | — | |||||||||
Total distributions | (0.30 | ) | (0.17 | ) | (0.01 | ) | — | |||||||||
Net asset value at end of period | $ | 18.72 | $ | 16.02 | $ | 11.94 | $ | 11.62 | ||||||||
Total return(C) | 19.02 | %(D) | 35.86 | % | 2.82 | % | 16.20 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 113,844 | $ | 84,539 | $ | 43,074 | $ | 50,110 | ||||||||
Ratio to average net assets: | 1.34 | %(E) | 1.34 | % | 1.34 | % | 1.34 | % | ||||||||
Net expenses | ||||||||||||||||
Gross expenses | 1.48 | %(E) | 1.58 | % | 1.79 | % | 1.55 | % | ||||||||
Net investment income (loss) | 1.92 | %(E) | 0.37 | % | (0.10 | )% | 0.32 | % | ||||||||
Portfolio turnover rate | 3 | %(D) | 11 | % | 37 | % | 29 | % |
Touchstone Small Cap Core Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 15.69 | $ | 11.79 | $ | 11.55 | $ | 10.00 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | 0.10 | (0.01 | ) | (0.08 | ) | (0.02 | ) | |||||||||
Net realized and unrealized gains on investments | 2.79 | 4.08 | 0.32 | 1.57 | ||||||||||||
Total from investment operations | 2.89 | 4.07 | 0.24 | 1.55 | ||||||||||||
Distributions from: | — | (B) | — | (B) | — | |||||||||||
Net investment income | (0.08 | ) | ||||||||||||||
Realized capital gains | (0.12 | ) | (0.17 | ) | — | (B) | — | |||||||||
Total distributions | (0.20 | ) | (0.17 | ) | — | (B) | — | |||||||||
Net asset value at end of period | $ | 18.38 | $ | 15.69 | $ | 11.79 | $ | 11.55 | ||||||||
Total return(C) | 18.63 | %(D) | 34.78 | % | 2.08 | % | 15.50 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 28,419 | $ | 24,278 | $ | 11,739 | $ | 5,245 | ||||||||
Ratio to average net assets: | 2.09 | %(E) | 2.09 | % | 2.09 | % | 2.09 | % | ||||||||
Net expenses | ||||||||||||||||
Gross expenses | 2.21 | %(E) | 2.30 | % | 2.51 | % | 2.57 | % | ||||||||
Net investment income (loss) | 1.17 | %(E) | (0.38 | )% | (0.80 | )% | (0.43 | )% | ||||||||
Portfolio turnover rate | 3 | %(D) | 11 | % | 37 | % | 29 | % |
(A) | The Fund commenced operations on October 1, 2009. | |
(B) | Less than $0.005 per share. | |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. | |
(D) | Not annualized. | |
(E) | Annualized. |
See accompanying Notes to Financial Statements.
98 |
Financial Highlights
Financial Highlights
(Continued)
(Continued)
Touchstone Small Cap Core Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 16.13 | $ | 12.00 | $ | 11.67 | $ | 10.00 | ||||||||
Income from investment operations: | ||||||||||||||||
Net investment income | 0.19 | 0.07 | 0.02 | 0.03 | ||||||||||||
Net realized and unrealized gains on investments | 2.86 | 4.24 | 0.34 | 1.64 | ||||||||||||
Total from investment operations | 3.05 | 4.31 | 0.36 | 1.67 | ||||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.22 | ) | (0.01 | ) | (0.03 | ) | — | |||||||||
Realized capital gains | (0.12 | ) | (0.17 | ) | — | (B) | — | |||||||||
Total distributions | (0.34 | ) | (0.18 | ) | (0.03 | ) | — | |||||||||
Net asset value at end of period | $ | 18.84 | $ | 16.13 | $ | 12.00 | $ | 11.67 | ||||||||
Total return | 19.26 | %(C) | 36.23 | % | 3.05 | % | 16.70 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 212,991 | $ | 168,987 | $ | 58,164 | $ | 33,536 | ||||||||
Ratio to average net assets: | 1.01 | %(D) | 1.04 | % | 1.09 | % | 1.09 | % | ||||||||
Net expenses | ||||||||||||||||
Gross expenses | 1.11 | %(D) | 1.17 | % | 1.21 | % | 1.31 | % | ||||||||
Net investment income | 2.25 | %(D) | 0.66 | % | 0.21 | % | 0.61 | % | ||||||||
Portfolio turnover rate | 3 | %(C) | 11 | % | 37 | % | 29 | % |
Touchstone Small Cap Core Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
March 31, | ||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2010(A) | |||||||||||||
Net asset value at beginning of period | $ | 16.11 | $ | 11.99 | $ | 11.65 | $ | 10.00 | ||||||||
Income from investment operations: | ||||||||||||||||
Net investment income | 0.20 | 0.06 | 0.03 | 0.06 | ||||||||||||
Net realized and unrealized gains on investments | 2.85 | 4.26 | 0.35 | 1.61 | ||||||||||||
Total from investment operations | 3.05 | 4.32 | 0.38 | 1.67 | ||||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.23 | ) | (0.03 | ) | (0.04 | ) | (0.02 | ) | ||||||||
Realized capital gains | (0.12 | ) | (0.17 | ) | — | (B) | — | |||||||||
Total distributions | (0.35 | ) | (0.20 | ) | (0.04 | ) | (0.02 | ) | ||||||||
Net asset value at end of period | $ | 18.81 | $ | 16.11 | $ | 11.99 | $ | 11.65 | ||||||||
Total return | 19.31 | %(C) | 36.32 | % | 3.24 | % | 16.74 | % | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 337,330 | $ | 247,876 | $ | 43,035 | $ | 10,386 | ||||||||
Ratio to average net assets: | 0.94 | %(D) | 0.94 | % | 0.94 | % | 0.94 | % | ||||||||
Net expenses | ||||||||||||||||
Gross expenses | 1.05 | %(D) | 1.09 | % | 1.16 | % | 1.32 | % | ||||||||
Net investment income | 2.32 | %(D) | 0.77 | % | 0.36 | % | 0.66 | % | ||||||||
Portfolio turnover rate | 3 | %(C) | 11 | % | 37 | % | 29 | % |
(A) | The Fund commenced operations on October 1, 2009. | |
(B) | Less than $0.005 per share. | |
(C) | Not annualized. | |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
99 |
Financial Highlights
Financial Highlights
(Continued)
(Continued)
Touchstone Small Cap Value Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A)(B) | ||||||||||
Net asset value at beginning of period | $ | 18.33 | $ | 13.85 | $ | 17.36 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income | 0.23 | 0.21 | (C) | 0.22 | ||||||||
Net realized and unrealized gains (losses) on investments | 2.55 | 4.60 | (3.57 | ) | ||||||||
Total from investment operations | 2.78 | 4.81 | (3.35 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.23 | ) | (0.33 | ) | (0.16 | ) | ||||||
Net asset value at end of period | $ | 20.88 | $ | 18.33 | $ | 13.85 | ||||||
Total return(D) | 15.26 | %(E) | 34.87 | % | (19.37 | )%(E) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 33,981 | $ | 32,115 | $ | 37,385 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses | 1.43 | %(F) | 1.43 | % | 1.43 | %(F) | ||||||
Gross expenses | 1.76 | %(F) | 1.77 | % | 1.72 | %(F) | ||||||
Net investment income | 2.34 | %(F) | 1.26 | % | 1.97 | %(F) | ||||||
Portfolio turnover rate | 51 | %(E) | 109 | % | 206 | %(E) |
Touchstone Small Cap Value Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 18.23 | $ | 13.82 | $ | 17.36 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income | 0.17 | 0.09 | (C) | 0.09 | ||||||||
Net realized and unrealized gains (losses) on investments | 2.52 | 4.58 | (3.50 | ) | ||||||||
Total from investment operations | 2.69 | 4.67 | (3.41 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.19 | ) | (0.26 | ) | (0.13 | ) | ||||||
Net asset value at end of period | $ | 20.73 | $ | 18.23 | $ | 13.82 | ||||||
Total return(D) | 14.84 | %(E) | 33.95 | % | (19.77 | )%(E) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 511 | $ | 104 | $ | 2 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses | 2.18 | %(F) | 2.18 | % | 2.18 | %(F) | ||||||
Gross expenses | 6.48 | %(F) | 28.35 | % | 342.41 | %(F) | ||||||
Net investment income | 1.59 | %(F) | 0.51 | % | 0.95 | %(F) | ||||||
Portfolio turnover rate | 51 | %(E) | 109 | % | 206 | %(E) |
(A) | Represents the period from commencement of operations (March 1, 2011) through September 30, 2011. | |
(B) | Effective June 10, 2011, Class Z shares converted to Class A shares. | |
(C) | The net investment income per share is based on average shares outstanding for the period. | |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. | |
(E) | Not annualized. | |
(F) | Annualized. |
See accompanying Notes to Financial Statements.
100 |
Financial Highlights
(Continued)
Touchstone Small Cap Value Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 18.36 | $ | 13.89 | $ | 17.36 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income | 0.28 | 0.26 | (B) | 0.71 | ||||||||
Net realized and unrealized gains (losses) on investments | 2.54 | 4.59 | (4.00 | ) | ||||||||
Total from investment operations | 2.82 | 4.85 | (3.29 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.27 | ) | (0.38 | ) | (0.18 | ) | ||||||
Net asset value at end of period | $ | 20.91 | $ | 18.36 | $ | 13.89 | ||||||
Total return | 15.39 | %(C) | 35.19 | % | (19.10 | )%(C) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 630 | $ | 222 | $ | 2 | ||||||
Ratio to average net assets: | 1.18 | %(D) | 1.18 | % | 1.18 | %(D) | ||||||
Net expenses | ||||||||||||
Gross expenses | 4.44 | %(D) | 22.47 | % | 70.29 | %(D) | ||||||
Net investment income | 2.59 | %(D) | 1.51 | % | 2.05 | %(D) | ||||||
Portfolio turnover rate | 51 | %(C) | 109 | % | 206 | %(C) |
Touchstone Small Cap Value Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 18.35 | $ | 13.86 | $ | 17.36 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income | 0.24 | 0.29 | (B) | 0.20 | ||||||||
Net realized and unrealized gains (losses) on investments | 2.56 | 4.60 | (3.51 | ) | ||||||||
Total from investment operations | 2.80 | 4.89 | (3.31 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.25 | ) | (0.40 | ) | (0.19 | ) | ||||||
Net asset value at end of period | $ | 20.90 | $ | 18.35 | $ | 13.86 | ||||||
Total return | 15.47 | %(C) | 35.56 | % | (19.23 | )%(C) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 2,521 | $ | 1,160 | $ | 741 | ||||||
Ratio to average net assets: | 1.03 | %(D) | 1.03 | % | 1.03 | %(D) | ||||||
Net expenses | ||||||||||||
Gross expenses | 1.72 | %(D) | 1.87 | % | 3.59 | %(D) | ||||||
Net investment income | 2.74 | %(D) | 1.66 | % | 2.12 | %(D) | ||||||
Portfolio turnover rate | 51 | %(C) | 109 | % | 206 | %(C) |
(A) | Represents the period from commencement of operations (March 1, 2011) through September 30, 2011. |
(B) | The net investment income per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | Annualized. |
See accompanying Notes to Financial Statements.
101 |
Financial Highlights
(Continued)
Touchstone Total Return Bond Fund—Class A†
Selected Data for a Share Outstanding Throughout Each Period††
Six Months | Year | Period | ||||||||||||||
Ended | Ended | Ended | Period | |||||||||||||
March 31, | September | September | Ended | |||||||||||||
2013 | 30, | 30, | March 31, | |||||||||||||
(Unaudited) | 2012 | 2011(A) | 2011(B) | |||||||||||||
Net asset value at beginning of period | $ | 10.50 | $ | 10.13 | $ | 9.90 | $ | 10.15 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income | 0.11 | 0.23 | 0.24 | 0.28 | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.02 | 0.41 | 0.24 | (0.14 | )(C) | |||||||||||
Total from investment operations | 0.13 | 0.64 | 0.48 | 0.14 | ||||||||||||
Distributions from: | ||||||||||||||||
Net investment income | (0.14 | ) | (0.27 | ) | (0.25 | ) | (0.39 | ) | ||||||||
Realized capital gains | (0.01 | ) | — | — | — | |||||||||||
Total distributions | (0.15 | ) | (0.27 | ) | (0.25 | ) | (0.39 | ) | ||||||||
Net asset value at end of period | $ | 10.48 | $ | 10.50 | $ | 10.13 | $ | 9.90 | ||||||||
Total return(D) | 1.16 | %(E) | 6.42 | % | 5.02 | %(E) | 1.31 | %(E)(F) | ||||||||
Ratios and supplemental data: | ||||||||||||||||
Net assets at end of period (000's) | $ | 14,262 | $ | 10,210 | $ | 4,737 | $ | 7 | ||||||||
Ratio to average net assets: | 0.90 | %(G) | 0.90 | % | 0.90 | %(G) | 0.65 | %(G) | ||||||||
Net expenses | ||||||||||||||||
Gross expenses | 1.04 | %(G) | 1.22 | % | 1.69 | %(G) | 1.75 | %(G) | ||||||||
Net investment income | 2.10 | %(G) | 2.26 | % | 4.40 | %(G) | 4.16 | %(G) | ||||||||
Portfolio turnover rate | 16 | %(E) | 79 | %(H) | 7 | %(E) | 27 | %(E) |
† | Touchstone Total Return Bond Fund acquired all of the assets and liabilities of EARNEST Partners Fixed Income Trust (“Predecessor Fund”) in a reorganization on August 1, 2011. The Predecessor Fund's performance and financial history have been adopted by Touchstone Total Return Bond and will be used going forward. As a result, the information prior to August 1, 2011 reflects that of the Predecessor Fund. |
†† | Per share data prior to August 1, 2011, reflects a 1.01491:1 stock split. All per share amounts prior to that date have been adjusted to reflect the stock split. |
(A) | Effective August 1, 2011, the Fund changed its fiscal year end from March 31 to September 30 and Investor Class shares were renamed Class A shares. See Note 8 in Notes to Financial Statements. |
(B) | Class A shares commenced operations on August 16, 2010. |
(C) | This amount per share is a loss for the Class A shares because of the short time period since the Commencement of Operations on August 16, 2010 relative to the full fiscal year in which the Class Y shares were in operation. The loss during this period is offset by the gain in the Class Y shares during the full fiscal year to create a gain in the Net Realized and Unrealized Gain on Investments in the other classes. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America, and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(G) | Annualized. |
(H) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
102 |
Financial Highlights
(Continued)
Touchstone Total Return Bond Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 10.49 | $ | 10.12 | $ | 10.04 | ||||||
Income from investment operations: | ||||||||||||
Net investment income | 0.07 | 0.14 | 0.06 | |||||||||
Net realized and unrealized gains on investments | 0.01 | 0.42 | 0.09 | |||||||||
Total from investment operations | 0.08 | 0.56 | 0.15 | |||||||||
Distributions from: | ||||||||||||
Net investment income | (0.10 | ) | (0.19 | ) | (0.07 | ) | ||||||
Realized capital gains | (0.01 | ) | — | — | ||||||||
Total distributions | (0.11 | ) | (0.19 | ) | (0.07 | ) | ||||||
Net asset value at end of period | $ | 10.46 | $ | 10.49 | $ | 10.12 | ||||||
Total return(B) | 0.69 | %(C) | 5.63 | % | 1.51 | %(C) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 3,905 | $ | 3,257 | $ | 2,587 | ||||||
Ratio to average net assets: | 1.65 | %(D) | 1.65 | % | 1.65 | %(D) | ||||||
Net expenses | ||||||||||||
Gross expenses | 1.91 | %(D) | 2.03 | % | 2.55 | %(D) | ||||||
Net investment income | 1.35 | %(D) | 1.51 | % | 3.75 | %(D) | ||||||
Portfolio turnover rate | 16 | %(C) | 79 | %(E) | 7 | %(C) |
(A) | Class C shares commenced operations on August 1, 2011. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
103 |
Financial Highlights
(Continued)
Touchstone Total Return Bond Fund—Class Y†
Selected Data for a Share Outstanding Throughout Each Period††
Six Months | Year | Period | ||||||||||||||||||||||||||
Ended | Ended | Ended | ||||||||||||||||||||||||||
March 31, | September | September | ||||||||||||||||||||||||||
2013 | 30, | 30, | Year Ended March 31, | |||||||||||||||||||||||||
(Unaudited) | 2012 | 2011(A) | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.52 | $ | 10.15 | $ | 9.86 | $ | 9.66 | $ | 8.48 | $ | 9.20 | $ | 9.29 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.13 | 0.25 | 0.24 | 0.45 | 0.48 | 0.48 | 0.46 | |||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.01 | 0.42 | 0.30 | 0.21 | 1.21 | (0.73 | ) | (0.09 | ) | |||||||||||||||||||
Total from investment operations | 0.14 | 0.67 | 0.54 | 0.66 | 1.69 | (0.25 | ) | 0.37 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.30 | ) | (0.25 | ) | (0.46 | ) | (0.51 | ) | (0.47 | ) | (0.46 | ) | ||||||||||||||
Realized capital gains | (0.01 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Total distributions | (0.16 | ) | (0.30 | ) | (0.25 | ) | (0.46 | ) | (0.51 | ) | (0.47 | ) | (0.46 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.50 | $ | 10.52 | $ | 10.15 | $ | 9.86 | $ | 9.66 | $ | 8.48 | $ | 9.20 | ||||||||||||||
Total return | 1.32 | %(B) | 6.72 | % | 5.29 | %(B) | 6.97 | %(C) | 20.28 | %(C) | (2.79 | )%(C) | 4.16 | %(C) | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 31,052 | $ | 29,716 | $ | 17,810 | $ | 16,512 | $ | 16,877 | $ | 13,075 | $ | 34,652 | ||||||||||||||
Ratio to average net assets: | 0.57 | %(D) | 0.58 | % | 0.48 | %(D) | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||||||||
Net expenses | ||||||||||||||||||||||||||||
Gross expenses | 0.64 | %(D) | 0.70 | % | 1.13 | %(D) | 1.62 | % | 1.56 | % | 1.14 | % | 0.94 | % | ||||||||||||||
Net investment income | 2.43 | %(D) | 2.59 | % | 4.35 | %(D) | 4.46 | % | 5.10 | % | 5.23 | % | 4.86 | % | ||||||||||||||
Portfolio turnover rate | 16 | %(B) | 79 | %(E) | 7 | %(B) | 27 | % | 29 | % | 24 | % | 19 | % |
† | Touchstone Total Return Bond Fund acquired all of the assets and liabilities of EARNEST Partners Fixed Income Trust (“Predecessor Fund”) in a reorganization on August 1, 2011. The Predecessor Fund's performance and financial history have been adopted by Touchstone Total Return Bond and will be used going forward. As a result, the information prior to August 1, 2011 reflects that of the Predecessor Fund. |
†† | Per share data prior to August 1, 2011, reflects a 0.87567:1 stock split. All per share amounts prior to that date have been adjusted to reflect the stock split. |
(A) | Effective August 1, 2011, the Fund changed its fiscal year end from March 31 to September 30 and Institutional Class shares were renamed Class Y shares. See Note 8 in the Notes to Financial Statements. |
(B) | Not annualized. |
(C) | Includes adjustments in accordance with accounting principles generally accepted in the United States of America, and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
104 |
Financial Highlights
(Continued)
Touchstone Total Return Bond Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Year | Period | ||||||||||
Ended | Ended | Ended | ||||||||||
March 31, | September | September | ||||||||||
2013 | 30, | 30, | ||||||||||
(Unaudited) | 2012 | 2011(A) | ||||||||||
Net asset value at beginning of period | $ | 10.51 | $ | 10.14 | $ | 10.06 | ||||||
Income from investment operations: | ||||||||||||
Net investment income | 0.13 | 0.22 | 0.08 | |||||||||
Net realized and unrealized gains on investments | 0.02 | 0.46 | 0.09 | |||||||||
Total from investment operations | 0.15 | 0.68 | 0.17 | |||||||||
Distributions from: | ||||||||||||
Net investment income | (0.16 | ) | (0.31 | ) | (0.09 | ) | ||||||
Realized capital gains | (0.01 | ) | — | — | ||||||||
Total distributions | (0.17 | ) | (0.31 | ) | (0.09 | ) | ||||||
Net asset value at end of period | $ | 10.49 | $ | 10.51 | $ | 10.14 | ||||||
Total return | 1.35 | %(B) | 6.81 | % | 1.70 | %(B) | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000's) | $ | 118,852 | $ | 148,341 | $ | 6,386 | ||||||
Ratio to average net assets: | 0.50 | %(C) | 0.50 | % | 0.50 | %(C) | ||||||
Net expenses | ||||||||||||
Gross expenses | 0.59 | %(C) | 0.67 | % | 1.21 | %(C) | ||||||
Net investment income | 2.50 | %(C) | 2.66 | % | 4.89 | %(C) | ||||||
Portfolio turnover rate | 16 | %(B) | 79 | %(D) | 7 | %(B) |
(A) | Institutional Class shares commenced operations on August 1, 2011. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
105 |
Financial Highlights
(Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class A
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||
Ended | Ended | |||||||
March 31, | September | |||||||
2013 | 30, | |||||||
(Unaudited) | 2012(A) | |||||||
Net asset value at beginning of period | $ | 9.56 | $ | 9.57 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | 0.05 | 0.09 | ||||||
Net realized and unrealized losses on investments | (0.01 | ) | (0.01 | ) | ||||
Total from investment operations | 0.04 | 0.08 | ||||||
Distributions from: | ||||||||
Net investment income | (0.08 | ) | (0.09 | ) | ||||
Net asset value at end of period | $ | 9.52 | $ | 9.56 | ||||
Total return(B) | 0.54 | %(C) | 0.85 | %(C) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 32,545 | $ | 34,228 | ||||
Ratio to average net assets: | 0.69 | %(D) | 0.69 | %(D) | ||||
Net expenses | ||||||||
Gross expenses | 0.77 | %(D) | 1.19 | %(D) | ||||
Net investment income | 1.04 | %(D) | 1.40 | %(D) | ||||
Portfolio turnover rate | 46 | %(C) | 169 | %(E) |
Touchstone Ultra Short Duration Fixed Income Fund—Class C
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||
Ended | Ended | |||||||
March 31, | September | |||||||
2013 | 30, | |||||||
(Unaudited) | 2012(A) | |||||||
Net asset value at beginning of period | $ | 9.56 | $ | 9.57 | ||||
Income from investment operations: | ||||||||
Net investment income | 0.03 | 0.05 | ||||||
Net realized and unrealized gains (losses) on investments | (0.01 | ) | 0.01 | |||||
Total from investment operations | 0.02 | 0.06 | ||||||
Distributions from: | ||||||||
Net investment income | (0.06 | ) | (0.07 | ) | ||||
Net asset value at end of period | $ | 9.52 | $ | 9.56 | ||||
Total return(B) | 0.18 | %(C) | 0.62 | %(C) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 13,655 | $ | 11,517 | ||||
Ratio to average net assets: | 1.19 | %(D) | 1.19 | %(D) | ||||
Net expenses | ||||||||
Gross expenses | 1.35 | %(D) | 1.68 | %(D) | ||||
Net investment income | 0.54 | %(D) | 0.90 | %(D) | ||||
Portfolio turnover rate | 46 | %(C) | 169 | %(E) |
(A) | Represents the period from commencement of operations (April 16, 2012) through September 30, 2012. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
106 |
Financial Highlights
(Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Class Y
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||
Ended | Ended | |||||||
March 31, | September | |||||||
2013 | 30, | |||||||
(Unaudited) | 2012(A) | |||||||
Net asset value at beginning of period | $ | 9.56 | $ | 9.57 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | 0.06 | 0.08 | ||||||
Net realized and unrealized gains (losses) on investments | (0.01 | ) | 0.01 | |||||
Total from investment operations | 0.05 | 0.09 | ||||||
Distributions from: | ||||||||
Net investment income | (0.09 | ) | (0.10 | ) | ||||
Net asset value at end of period | $ | 9.52 | $ | 9.56 | ||||
Total return | 0.56 | %(B) | 0.97 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 219,200 | $ | 190,515 | ||||
Ratio to average net assets: | 0.44 | %(C) | 0.44 | %(C) | ||||
Net expenses | ||||||||
Gross expenses | 0.48 | %(C) | 0.55 | %(C) | ||||
Net investment income | 1.29 | %(C) | 1.65 | %(C) | ||||
Portfolio turnover rate | 46 | %(B) | 169 | %(D) |
Touchstone Ultra Short Duration Fixed Income Fund—Class Z
Selected Data for a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2013 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.56 | $ | 9.58 | $ | 9.68 | $ | 9.66 | $ | 9.74 | $ | 10.08 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.05 | 0.14 | 0.15 | 0.18 | 0.32 | 0.47 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investment | (0.01 | ) | 0.06 | (0.04 | ) | 0.06 | (0.07 | ) | (0.34 | ) | ||||||||||||||
Total from investment operations | 0.04 | 0.20 | 0.11 | 0.24 | 0.25 | 0.13 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.22 | ) | (0.21 | ) | (0.22 | ) | (0.33 | ) | (0.47 | ) | ||||||||||||
Net asset value at end of period | $ | 9.52 | $ | 9.56 | $ | 9.58 | $ | 9.68 | $ | 9.66 | $ | 9.74 | ||||||||||||
Total return | 0.46 | %(B) | 2.10 | % | 1.12 | % | 2.49 | % | 2.60 | % | 1.26 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000's) | $ | 320,762 | $ | 338,669 | $ | 346,131 | $ | 236,650 | $ | 108,552 | $ | 143,837 | ||||||||||||
Ratio to average net assets: | 0.64 | %(C) | ||||||||||||||||||||||
Net expenses | 0.64 | % | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||||||||
Gross expenses | 0.70 | %(C) | 0.73 | % | 0.78 | % | 0.81 | % | 0.85 | % | 0.82 | % | ||||||||||||
Net Investment Income | 1.09 | %(C) | 1.45 | % | 1.39 | % | 1.69 | % | 3.41 | % | 4.72 | % | ||||||||||||
Portfolio turnover rate | 46 | %(B) | 169 | %(D) | 144 | % | 119 | % | 15 | % | 56 | % |
(A) | Represents the period from commencement of operations (April 16, 2012) through September 30, 2012. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
107 |
Financial Highlights
(Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Institutional Class
Selected Data for a Share Outstanding Throughout Each Period
Six Months | Period | |||||||
Ended | Ended | |||||||
March 31, | September | |||||||
2013 | 30, | |||||||
(Unaudited) | 2012(A) | |||||||
Net asset value at beginning of period | $ | 9.56 | $ | 9.57 | ||||
Income from investment operations: | ||||||||
Net investment income | 0.07 | 0.09 | ||||||
Net realized and unrealized gains (losses) on investments | (0.01 | ) | — | |||||
Total from investment operations | 0.06 | 0.09 | ||||||
Distributions from: | ||||||||
Net investment income | (0.10 | ) | (0.10 | ) | ||||
Net asset value at end of period | $ | 9.52 | $ | 9.56 | ||||
Total return | 0.58 | %(B) | 0.99 | %(B) | ||||
Ratios and supplemental data: | ||||||||
Net assets at end of period (000's) | $ | 15,134 | $ | 6,697 | ||||
Ratio to average net assets: | 0.39 | %(C) | 0.39 | %(C) | ||||
Net expenses | ||||||||
Gross expenses | 0.62 | %(C) | 1.23 | %(C) | ||||
Net investment income | 1.34 | %(C) | 1.70 | %(C) | ||||
Portfolio turnover rate | 46 | %(B) | 169 | %(D) |
(A) | Represents the period from commencement of operations (April 16, 2012) through September 30, 2012. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchase and sales of the Acquired Funds (see Note 9). If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements
108 |
Notes to Financial Statements
March 31, 2013 (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 under a Declaration of Trust dated October 25, 1993. The Trust consists of the following fourteen funds, individually, a “Fund,” and collectively, the “Funds”:
Touchstone Emerging Markets Equity Fund (“Emerging Markets Equity Fund”)
Touchstone Focused Equity Fund (“Focused Equity Fund”)
Touchstone Global Real Estate Fund (“Global Real Estate Fund”)
Touchstone International Fixed Income Fund (“International Fixed Income Fund”)
Touchstone Merger Arbitrage Fund (“Merger Arbitrage Fund”)
Touchstone Mid Cap Fund (“Mid Cap Fund”)
Touchstone Mid Cap Value Fund (“Mid Cap Value Fund”)
Touchstone Premium Yield Equity Fund (“Premium Yield Equity Fund”)
Touchstone Sands Capital Select Growth Fund (“Sands Capital Select Growth Fund”)
Touchstone Short Duration Fixed Income Fund (“Short Duration Fixed Income Fund”)
Touchstone Small Cap Core Fund (“Small Cap Core Fund”)
Touchstone Small Cap Value Fund (“Small Cap Value Fund”)
Touchstone Total Return Bond Fund (“Total Return Bond Fund”)
Touchstone Ultra Short Duration Fixed Income Fund (“Ultra Short Duration Fixed Income Fund”)
Each Fund is an open-end, diversified, management investment company, with the exception of the Focused Equity Fund, Global Real Estate Fund, International Fixed Income Fund, Merger Arbitrage Fund, Sands Capital Select Growth Fund and Small Cap Core Fund, each of which is an open-end, non-diversified management investment company.
The Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The Funds are registered to offer the following classes of shares: Class A shares, Class C shares, Class Y shares, Class Z shares, and Institutional Class shares. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment objectives, 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:
Security valuation and fair value measurements — All investments in securities are recorded at their estimated fair value. The Funds define the term “market value”, as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of its portfolio securities on a recurring basis. Generally accepted accounting principles in the United States (“U.S. GAAP”) establish a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
• | Level 1 – | quoted prices in active markets for identical securities |
• | Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
109 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market instruments are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.
The aggregate value by input level, as of March 31, 2013, for each Fund’s investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, if applicable, is included in each Fund’s Portfolio of Investments, which also includes a breakdown of the Fund’s investments by sector allocation or credit quality. There were no Level 3 securities for the Funds during the six months ended March 31, 2013.
All transfers in and out of the levels are recognized at the value at the end of the period. During the six months ended March 31, 2013, there were no transfers between Levels 1, 2 and 3 for all Funds except as shown in the Portfolio of Investments for the Emerging Markets Equity Fund.
The Funds’ portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (“NYSE”) (currently, 4:00 p.m., Eastern time). Portfolio securities traded on stock exchanges are valued at the last sale price, and to the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”). Securities not traded on a particular day, or for which the last sale price is not readily available, are valued at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service and are categorized in Level 2. Debt securities for which market quotations are readily available are valued at their most recent bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service and are categorized in Level 2. Money market instruments and other debt securities with a remaining maturity of less than 60 days are valued at amortized cost, which approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment. Securities for which market quotations or the NOCP are not readily available are fair valued as determined by or under the direction of the Board of Trustees and are categorized in Level 3. Shares of open-end mutual funds in which the Funds invest are valued at their respective net asset values (“NAV”) as reported by the underlying funds and are categorized in Level 1. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.
Level 2 Valuation — Securities mainly traded on a non-U.S. exchange are generally valued according to the preceding closing values on that exchange. 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. This may cause the value of the security on the books of the Funds to be significantly different from the closing value on the non-U.S. exchange and may affect the calculation of the NAV of the Funds. Any debt securities held by the Funds for which market quotations are not readily available are generally priced at their most recent bid prices as obtained from one or more of the major market makers for such securities.
Level 3 Valuation — Securities held by the Funds that do not have readily available market quotations, or securities for which the available market quotations are not reliable, are priced at their fair value using procedures approved by the Funds’ Board of Trustees. The Funds may use fair value pricing under the following circumstances, among others:
110 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
• If the value of a security has been materially affected by events occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded.
• If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation.
• If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading.
• If the validity of market quotations is not reliable.
Certain Funds invest in securities of other investment companies, including exchange traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter. An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETFs are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that shares of the fund may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund 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 Funds’ fees and expenses.
New accounting pronouncements — In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11,“Disclosures about Offsetting Assets and Liabilities”. ASU No.2011-11 requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under the International Financial Reporting Standards (“IFRS”).The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the Statement of Assets and Liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU No. 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of ASU No. 2011-11 to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact these updates may have on the Funds’ financial statements.
Securities sold short — The Funds periodically engage in selling securities short, which obligates a Fund to replace a security borrowed by purchasing the same security at the current market value. A Fund would incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. A Fund would realize a gain if the price of the security declines between those dates. As of March 31, 2013, the Merger Arbitrage Fund held securities sold short with a fair value of $91,745,397 and had cash in the amount of $79,021,033, respectively, held as collateral for the securities sold short.
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.
111 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing the Fund’s total return, and the potential for losses in excess of the Fund’s initial investment.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.
During the six months ended March 31, 2013, the International Fixed Income Fund used forward foreign currency contracts to enhance potential gains, hedge against anticipated currency exchange rates, maintain diversity and liquidity of the portfolio and adjust exposure to foreign currencies.
Derivative instruments and hedging activities — The following table sets forth the fair value of the Funds’ derivative financial instruments by primary risk exposure as of March 31, 2013:
Fair Value of Derivative Investments
As of March 31, 2013
Asset | Liability | |||||||||
Derivatives* | Derivatives** | |||||||||
Derivatives not accounted for as hedging | Unrealized | Unrealized | ||||||||
Fund | instruments under ASC 815 | Appreciation | Depreciation | |||||||
International Fixed Income Fund | Forward- Foreign Currency Exchange Contracts | $ | 727,997 | $ | (519,448 | ) |
* Statements of Assets and Liabilities Location: Unrealized appreciation on forward foreign currency contracts
** Statements of Assets and Liabilities Location: Unrealized depreciation on forward foreign currency contracts
The Effect of Derivative Investments on the Statement of Operations
for the Six Months Ended March 31, 2013
Change in | ||||||||||
Unrealized | ||||||||||
Appreciation | ||||||||||
Realized Gain | (Depreciation) | |||||||||
Derivatives not accounted for as hedging | (Loss) | on | ||||||||
Fund | instruments under ASC 815 | on Derivatives* | Derivatives** | |||||||
International Fixed Income Fund | Forward- Foreign Currency Exchange Contracts | $ | (344,769 | ) | $ | 221,731 | ||||
Merger Arbitrage Fund | Forward- Foreign Currency Exchange Contracts | 303,498 | 24,300 |
* Statements of Operations Location: Net realized gains (losses) on foreign currency transactions
** Statements of Operations Location: Net change in unrealized appreciation (depreciation) on foreign currency transactions
112 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
For the six months ended March 31, 2013, the average quarterly balance of outstanding derivative financial instruments were as follows:
International | Merger | |||||||
Fixed Income | Arbitrage | |||||||
Fund | Fund | |||||||
Forward foreign currency exchange contracts: | ||||||||
Average number of contracts | 74 | 1 | ||||||
Average U.S. dollar amount purchased | $ | 25,016,528 | $ | 8,394,656 | ||||
Average U.S. dollar amount sold | 25,092,472 | — |
Portfolio securities loaned — Each Fund may lend its portfolio securities. Lending portfolio securities exposes a Fund to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian in an amount at least equal to the market value of the loaned securities. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the securities loaned plus accrued interest if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved investment vehicle.
As of March 31, 2013, the following Funds loaned securities and received collateral as follows:
Market Value of | Market Value of | |||||||
Securities | Collateral | |||||||
Fund | Loaned | Received | ||||||
Emerging Markets Equity Fund | $ | 7,662,254 | $ | 7,893,533 | ||||
Focused Equity Fund | 4,363,887 | 4,454,850 | ||||||
Global Real Estate Fund | 79,445 | 82,560 | ||||||
Mid Cap Fund | 13,766,150 | 13,825,499 | ||||||
Mid Cap Value Fund | 1,683,640 | 1,708,403 | ||||||
Sands Capital Select Growth Fund | 197,922,740 | 198,472,230 | ||||||
Small Cap Core Fund | 76,820,110 | 78,835,879 | ||||||
Small Cap Value Fund | 2,904,687 | 2,989,420 |
All collateral received as cash is received, held and administered by the Funds’ custodian for the benefit of the Funds in the applicable custody account or other account established for the purpose of holding collateral.
Funds participating in securities lending receive compensation in the form of fees, or retain a portion of interest or dividends on the investment of any cash received as collateral. The Funds also continue to receive interest or dividends on the securities loaned.
Unrealized gain or loss on the market value of the securities loaned that may occur during the term of the loan is recognized by the Funds. The Funds have the right under the lending agreement to recover the securities from the borrower on demand.
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 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
113 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
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 Funds (except the International Fixed Income Fund, Total Return Bond Fund and Ultra Short Duration Fixed Income Fund) is equal to the NAV per share plus a sales load equal to 6.10% of the NAV (or 5.75% of the offering price). The maximum offering price per share of Class A shares of the International Fixed Income Fund and Total Return Bond Fund is equal to the NAV per share plus a sales load equal to 4.99% of the NAV (or 4.75% of the offering price). The maximum offering price per share of Class A shares of the Ultra Short Duration Fixed Income Fund is equal to the NAV per share plus sales load equal to 2.04% of the NAV (or 2.00% of the offering price). There is no sales load on purchases of $1 million or more of Class A shares. The maximum offering price per share of Class C, Class Y, Class 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 no-load $1 million subscriptions may be subject to a contingent deferred sales charge (“CDSC”) of up to 1%. Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00% of the original purchase price if redeemed within a one-year period from the date of purchase.
Investment income — Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issue discount (“OID”) and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.
Distributions to shareholders — Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. The Emerging Markets Equity Fund, Focused Equity Fund, Merger Arbitrage Fund, Mid Cap Fund, and Small Cap Core Fund distribute their income, if any, annually to shareholders. The Global Real Estate Fund, Mid Cap Value Fund, Sands Capital Select Growth Fund, and Small Cap Value Fund distribute their income, if any, quarterly to shareholders. The International Fixed Income Fund, Premium Yield Equity Fund andTotal Return Bond Fund distribute their income, if any, monthly to shareholders. The Short Duration Fixed Income Fund, and Ultra Short Duration Fixed Income Fund distribute their income, if any, daily to shareholders. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the funds net investment income that invests in underlying funds is affected by the timing of dividend declarations by investee 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
114 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
proportionally among all the Funds in the Trust, and/or in Touchstone Investment Trust, Touchstone Strategic Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust and Touchstone Tax-Free 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, which may cause the NAV as stated in the accompanying financial statements to be different than the NAV applied to fund share transactions. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended March 31, 2013:
Emerging | Focused | Global | International | |||||||||||||
Markets Equity | Equity | Real Estate | Fixed Income | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 44,807,942 | $ | 57,013,371 | $ | 9,902,635 | $ | 7,638,328 | ||||||||
Proceeds from sales and maturities | $ | 56,609,076 | $ | 22,641,719 | $ | 13,893,034 | $ | 8,800,386 |
Merger | Mid Cap | Premium Yield | ||||||||||||||
Arbitrage | Mid Cap | Value | Equity | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 624,100,609 | $ | 48,836,220 | $ | 56,808,394 | $ | 48,300,540 | ||||||||
Proceeds from sales and maturities | $ | 571,406,984 | $ | 9,005,791 | $ | 37,269,716 | $ | 9,803,742 |
Sands Capital | Short Duration | Small Cap | Small Cap | |||||||||||||
Select Growth | Fixed Income | Core | Value | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 1,415,198,301 | $ | 30,371,294 | $ | 77,255,115 | $ | 17,638,334 | ||||||||
Proceeds from sales and maturities | $ | 727,985,903 | $ | 18,674,647 | $ | 17,248,008 | $ | 18,579,200 |
Total Return | Ultra Short | |||||||||||||||
Bond | Duration Fixed | |||||||||||||||
Fund | Income Fund | |||||||||||||||
Purchases of investment securities | $ | 12,406,535 | $ | 331,666,241 | ||||||||||||
Proceeds from sales and maturities | $ | 17,696,862 | $ | 219,358,455 |
Purchases and proceeds from sales and maturities in U.S. Government Securities were $0.00 and $218,516 for the International Fixed Income Fund, $7,493,790 and 8,747,419 for the Short Duration Fixed Income Fund, $15,331,868 and $32,978,740 for the Total Return Bond Fund and $11,402,492 and $44,250,307 for the Ultra Short Duration Fixed Income Fund, respectively, for the six months ended March 31, 2013.
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also officers of Touchstone Advisors, Inc. (the “Advisor”), Touchstone Securities, Inc. (the “Underwriter”) or BNY Mellon Investment Servicing (U.S.) Inc. (“BNY Mellon”), the Sub-Administrator andTransfer Agent to the Funds. Such officers receive no compensation from the Trust.The Advisor and Underwriter are each wholly owned, indirect subsidiaries of The Western and Southern Life Insurance Company (“Western-Southern”).
115 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under terms of an advisory agreement (“Advisory Agreement”). Under the Advisory Agreement, the Funds pay the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets as shown in the table below.
Emerging Markets Equity Fund | 1.05% on the first $200 million |
1.00% on the next $200 million | |
0.90% of such assets in excess of $400 million | |
Focused Equity Fund | 0.70% on the first $100 million |
0.65% on the next $400 million | |
0.60% of such assets in excess of $500 million | |
Global Real Estate Fund | 0.80% |
International Fixed Income Fund* | 0.55% on the first $100 million |
0.50% on the next $150 million | |
0.45% of such assets in excess of $250 million | |
Merger Arbitrage Fund | 1.05% |
Mid Cap Fund | 0.80% on the first $500 million |
0.75% on the next $500 million | |
0.70% of such assets in excess of $1 billion | |
Mid Cap Value Fund | 0.85% on the first $100 million |
0.80% on the next $300 million | |
0.75% of such assets in excess of $400 million | |
Premium Yield Equity Fund | 0.70% on the first $100 million |
0.65% of such assets in excess of $100 million | |
Sands Capital Select Growth Fund | 0.85% on the first $1 billion |
0.80% on the next $500 million | |
0.75% on the next $500 million | |
0.70% of such assets in excess of $2 billion | |
Short Duration Fixed Income Fund | 0.25% |
Small Cap Core Fund | 0.85% |
Small Cap Value Fund | 0.95% on the first $100 million |
0.90% of such assets in excess of $100 million | |
Total Return Bond Fund | 0.35% |
Ultra Short Duration Fixed Income Fund | 0.25% |
* Subject to $100,000 annual minimum
In addition to the base advisory fee shown above for the Sands Capital Select Growth Fund, a performance fee adjustment will be added to or subtracted from the base advisory fee depending on the performance of the Fund in relation to the investment performance of the Fund’s benchmark index, for the preceding twelve month period, as follows:
Annual | Highest / Lowest | |||||||||||
Benchmark | Benchmark | Adjustment | Possible Advisory | |||||||||
Index | Threshold | Rate | Fee | |||||||||
Russell1000 | ||||||||||||
Sands Capital Select Growth Fund | Growth Index | +/-2.50 | % | +/-0.15 | % | 1.00% / 0.55% |
For the six months ended March 31, 2013, the Advisor’s base fee was increased by $622,796 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”):
116 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
AGF Investments America, Inc. | GAM International Management Limited |
Emerging Markets Equity Fund | International Fixed Income Fund |
Russell Implementation Services, Inc.* | Lee Munder Capital Group LLC |
Global Real Estate Fund | Mid Cap Value Fund |
DePrince, Race & Zollo, Inc. | The London Company |
Small Cap Value Fund | Small Cap Core Fund |
Mid Cap Fund | |
EARNEST Partners LLC | Longfellow Investment Management Co. |
Total Return Bond Fund | Merger Arbitrage Fund |
Short Duration Fixed Income Fund | |
Fort Washington Investment Advisors, Inc.** | Miller/Howard Investments, Inc. |
Focused Equity Fund | Premium Yield Equity Fund |
Ultra Short Duration Fixed Income Fund | |
Sands Capital Management, LLC | |
Sands Capital Select Growth Fund |
*Effective Febuary 22, 2013, Russell Implementation Services, Inc. became the interm sub-advisor of the Global Real Estate Fund; prior to Febuary 22, 2013, Cornerstone Real Estate Advisers LLC was the sub-advisor.
**Affiliate of the Advisor
The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.
The Advisor entered into an Expense Limitation Agreement (“Expense Limitation Agreement”) to contractually limit operating expenses of the Funds, excluding dividend expenses on short sales, interest, taxes, brokerage commissions, other expenditures which are capitalized in accordance with GAAP, the cost of “Acquired Fund Fees and Expenses”, if any, and other extraordinary expenses not incurred in the ordinary course of business. The maximum operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to separately waive class level expenses, administration fees and reimburse expenses in order to maintain expense limitations for the Funds as follows:
117 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Institutional | ||||||||||||||||||||
Class A | Class C | Class Y | Class Z | Class | ||||||||||||||||
Emerging Markets Equity Fund | 1.69 | % | 2.44 | % | 1.44 | % | — | 1.29 | % | |||||||||||
Focused Equity Fund | 1.20 | % | 1.95 | % | 0.95 | % | — | 0.80 | % | |||||||||||
Global Real Estate Fund | 1.39 | % | 2.14 | % | 1.14 | % | — | 0.99 | % | |||||||||||
International Fixed Income Fund | 1.09 | % | 1.84 | % | 0.84 | % | — | 0.69 | % | |||||||||||
Merger Arbitrage Fund | 1.68 | % | 2.43 | % | 1.43 | % | — | 1.28 | % | |||||||||||
Mid Cap Fund | 1.21 | % | 1.96 | % | 0.96 | % | 1.21 | % | 0.89 | % | ||||||||||
Mid Cap Value Fund | 1.29 | % | 2.04 | % | 1.04 | % | — | 0.89 | % | |||||||||||
Premium Yield Equity Fund | 1.20 | % | 1.95 | % | 0.95 | % | — | — | ||||||||||||
Short Duration Fixed Income Fund | — | — | 0.49 | % | 0.74 | % | — | |||||||||||||
Small Cap Core Fund | 1.34 | % | 2.09 | % | 1.09 | % | — | 0.94 | % | |||||||||||
Small Cap Value Fund | 1.43 | % | 2.18 | % | 1.18 | % | — | 1.03 | % | |||||||||||
Total Return Bond Fund | 0.90 | % | 1.65 | % | 0.65 | % | — | 0.50 | % | |||||||||||
Ultra Short Duration Fixed Income Fund | 0.69 | % | 1.19 | % | 0.44 | % | 0.69 | % | 0.39 | % |
These expense limitations will remain in effect for all funds except the Total Return Bond Fund and Ultra Short Duration Fixed Income Fund until at least January 29, 2014. The fee waivers and expense reimbursements for the Total Return Bond Fund and Ultra Short Duration Fixed Income Fund will remain in effect until at least April 16, 2014.
The Advisor has agreed to limit certain Funds’ other operating expenses (“Other Expenses”) to the following levels. These expense limitations will remain in effect until at least January 29, 2014.
Class A | Class C | Class Y | Class Z | |||||||||||||
Sands Capital Select Growth Fund | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % |
During the six months ended March 31, 2013, the Advisor and/or affiliates waived investment advisory fees and administration fees or reimbursed expenses, including 12b-1 fees of the Funds as follows:
Other | ||||||||||||
Investment | Operating | |||||||||||
Advisory | Administration | Expenses | ||||||||||
Fees Waived | Fees Waived | Reimbursed | ||||||||||
Emerging Markets Equity Fund | $ | — | $ | — | $ | 61,765 | ||||||
Focused Equity Fund | 45,339 | 102,417 | 134,682 | |||||||||
Global Real Estate Fund | 23,759 | 20,072 | 16,230 | |||||||||
International Fixed Income Fund | 9,116 | 26,582 | 32,647 | |||||||||
Mid Cap Fund | — | 54,114 | 25,750 | |||||||||
Mid Cap Value Fund | — | 92,206 | 29,316 | |||||||||
Premium Yield Equity Fund | — | — | 39,231 | |||||||||
Sands Capital Select Growth Fund | — | — | 201,833 | |||||||||
Short Duration Fixed Income Fund | — | 5,785 | 35,728 | |||||||||
Small Cap Core Fund | — | 290,096 | 37,168 | |||||||||
Small Cap Value Fund | 13,268 | 30,333 | 27,710 | |||||||||
Total Return Bond Fund | — | 63,739 | 19,500 | |||||||||
Ultra Short Duration Fixed Income Fund | — | 165,339 | 19,169 |
Under the terms of the Expense Limitations Agreement the Advisor is entitled to recover, subject to approval by the Funds’ Board of Trustees, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation or assumed expenses for the Funds. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount.
As of March 31, 2013, the Advisor may seek recoupment of previously waived and reimbursed fees as follows:
118 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Expiration | Expiration | |||||||
September | September | |||||||
Fund | 30, 2015 | 30, 2016 | ||||||
Emerging Markets Equity Fund | $ | 141,492 | $ | 23,321 | ||||
Focused Equity Fund | 282,480 | 162,953 | ||||||
Global Real Estate Fund | 67,941 | 58,080 | ||||||
International Fixed Income Fund | 34,638 | 64,401 | ||||||
Merger Arbitrage Fund | 287 | — | ||||||
Mid Cap Fund | 90,757 | 90,757 | ||||||
Mid Cap Value Fund | 130,859 | 130,859 | ||||||
Premium Yield Equity Fund | 32,094 | 17,075 | ||||||
Sands Capital Select Growth Fund | 770,598 | 190,774 | ||||||
Short Duration Fixed Income Fund | 58,430 | 41,513 | ||||||
Small Cap Core Fund | 313,523 | 306,186 | ||||||
Small Cap Value Fund | 87,517 | 56,965 | ||||||
Total Return Bond Fund | 126,307 | 74,952 | ||||||
Ultra Short Duration Fixed Income Fund | 289,572 | 173,533 |
For the six months ended March 31, 2013, the Merger Arbitrage Fund is eligible to recoup $16,178 and the Ultra Short Duration Fixed Income Fund is eligible to recoup $12,836.
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with, the Securities and Exchange Commission (the “SEC”) and state securities authorities, as well as materials for meetings of the Board of Trustees; calculating the daily NAV per share; and maintaining the financial books and records of each Fund. For its services, the Advisor receives an annual fee of 0.20% on the first $6 billion of the aggregate average daily net assets of the Touchstone Fund Complex (excludingTouchstone Institutional Money Market Fund, the Touchstone Institutional Funds Trust and the Touchstone Variable Series Trust); 0.16% of the next $4 billion of aggregate average daily net assets; and 0.12% of the aggregate average daily net assets over $10 billion. The fee is allocated among the funds of the Touchstone Fund Complex (excludingTouchstone Institutional Money Market Fund, the Touchstone Institutional Funds Trust and the Touchstone Variable Series Trust) on the basis of relative daily net assets.
The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee per shareholder account from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.
PLANS OF DISTRIBUTION AND SHAREHOLDERS SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that are subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. Under the Class A plan,
119 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
each Fund offering Class A (except the Short Duration Fixed Income Fund) shares pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares.
Under the Class C plan, each Fund (except the Short Duration Fixed Income and Ultra Short Duration Fixed Income Fund) pays an annual fee of up to 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee). The Ultra Short Duration Fixed Income Fund intends to limit the amount of the 12b-1 fees for Class C shares to 0.75% of average daily net assets for at least one year from April 16, 2013.
Under the Class Z plan, each Fund offering Class Z shares pays an annual shareholder servicing fee of up to 0.25% of average daily net assets that are attributed 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 Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of Class A shares of the following Funds during the six months ended March 31, 2013:
Fund | Amount | |||
Emerging Markets Equity Fund | $ | 8,400 | ||
Focused Equity Fund | 3,296 | |||
Global Real Estate Fund | 2,002 | |||
International Fixed Income Fund | 1,725 | |||
Merger Arbitrage Fund | 84,745 | |||
Mid Cap Fund | 44,887 | |||
Mid Cap Value Fund | 5,133 | |||
Premium Yield Equity Fund | 145,939 | |||
Sands Capital Select Growth Fund | 939,453 | |||
Small Cap Core Fund | 36,482 | |||
Small Cap Value Fund | 14,680 | |||
Total Return Bond Fund | 7,927 | |||
Ultra Short Duration Fixed Income Fund | 3,478 |
In addition, the Underwriter collected contingent deferred sales charges on the redemption of Class C shares of the following Funds during the six months ended March 31, 2013:
Fund | Amount | |||
Emerging Markets Equity Fund | $ | — | ||
International Fixed Income Fund | 7 | |||
Merger Arbitrage Fund | 2,117 | |||
Mid Cap Fund | 150 | |||
Mid Cap Value Fund | 14 | |||
Premium Yield Equity Fund | 625 | |||
Sands Capital Select Growth Fund | 12,085 | |||
Small Cap Core Fund | 738 | |||
Total Return Bond Fund | 118 | |||
Ultra Short Duration Fixed Income Fund | 562 |
AFFILIATED INVESTMENTS
Each Fund may invest in the Touchstone Institutional Money Market Fund, subject to compliance with several conditions set forth in an exemptive order received by the Trust from the SEC. To the extent that the other
120 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Touchstone Funds are invested in the Touchstone Institutional Money Market Fund, the Advisor and Administrator will be paid additional fees from the Touchstone Institutional Money Market Fund that will not be waived or reimbursed.
A summary of each Fund’s investment, as applicable, in the Touchstone Institutional Money Market Fund for the six months ended March 31, 2013, is as follows:
Share Activity | ||||||||||||||||||||||||
Balance | Balance | Value | ||||||||||||||||||||||
09/30/12 | Purchases | Sales | 03/31/13 | Dividends | 03/31/13 | |||||||||||||||||||
Emerging Markets Equity Fund | 603 | 66,149,358 | (55,399,351 | ) | 10,750,610 | $ | 3,290 | $ | 10,750,610 | |||||||||||||||
Focused Equity Fund | 5,180,604 | 47,284,036 | (45,008,891 | ) | 7,455,749 | 2,159 | 7,455,749 | |||||||||||||||||
Global Real Estate Fund | 808,114 | 5,378,594 | (5,980,270 | ) | 206,438 | 168 | 206,438 | |||||||||||||||||
International Fixed Income Fund | 2,061,388 | 4,802,858 | (6,313,740 | ) | 550,506 | 403 | 550,506 | |||||||||||||||||
Merger Arbitrage Fund | 10,751,954 | 376,798,199 | (299,220,465 | ) | 88,329,688 | 18,494 | 88,329,688 | |||||||||||||||||
Mid Cap Fund | 938,052 | 46,581,165 | (24,047,702 | ) | 23,471,515 | 1,946 | 23,471,515 | |||||||||||||||||
Mid Cap Value Fund | 1,677,943 | 44,714,254 | (35,680,151 | ) | 10,712,046 | 1,302 | 10,712,046 | |||||||||||||||||
Premium Yield Equity Fund | 16,172,313 | 46,820,969 | (36,539,146 | ) | 26,454,136 | 2,663 | 26,454,136 | |||||||||||||||||
Sands Capital Select Growth Fund | 83,047,789 | 575,678,109 | (574,905,191 | ) | 83,820,707 | 30,957 | 83,820,707 | |||||||||||||||||
Short Duration Fixed Income Fund | 13,587,181 | 37,725,880 | (48,934,722 | ) | 2,378,339 | 2,624 | 2,378,339 | |||||||||||||||||
Small Cap Core Fund | 8,371,104 | 88,435,096 | (71,857,951 | ) | 24,948,249 | 12,352 | 24,948,249 | |||||||||||||||||
Small Cap Value Fund | 626,030 | 8,587,534 | (8,429,225 | ) | 784,339 | 302 | 784,339 | |||||||||||||||||
Total Return Bond Fund | 3,129,218 | 47,313,422 | (47,555,129 | ) | 2,887,511 | 1,951 | 2,887,511 | |||||||||||||||||
Ultra Short Duration Fixed Income Fund | 33,758,248 | 467,300,115 | (500,912,243 | ) | 146,120 | 8,227 | 146,120 |
5. Federal Tax Information
Federal income tax — It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. It is the Funds’ policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid for the years ended September 30, 2012 and 2011 was as follows:
Emerging Markets | Focused | Global Real | ||||||||||||||||||||||
Equity Fund | Equity Fund | Estate Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
From ordinary income | $ | 9,820,137 | $ | 917,181 | $ | 2,840,690 | $ | 95,426 | $ | 336,360 | $ | 358,116 | ||||||||||||
From long-term capital gains | 3,092,612 | 42,906 | 78,600 | — | 100,694 | 20,496 | ||||||||||||||||||
$ | 12,912,749 | $ | 960,087 | $ | 2,919,290 | $ | 95,426 | $ | 437,054 | $ | 378,612 |
121 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
International Fixed | Merger Arbitrage | |||||||||||||||
Income Fund | Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011* | |||||||||||||
From ordinary income | $ | 550,240 | $ | 994,275 | $ | 61,084 | $ | — | ||||||||
From long-term capital gains | 53,795 | 7,726 | — | — | ||||||||||||
$ | 604,035 | $ | 1,002,001 | $ | 61,084 | $ | — |
Mid Cap | Mid Cap | |||||||||||||||||||||||
Fund | Value Fund | Premium Yield Equity Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Period Ended | Period Ended | |||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011* | |||||||||||||||||||
From ordinary income | $ | 142,586 | $ | 273,246 | $ | 3,391,737 | $ | 1,058,579 | $ | 2,414,120 | $ | 1,295,544 | ||||||||||||
From long-term capital gains | — | — | 506,388 | 89,486 | — | — | ||||||||||||||||||
From return of capital | — | — | — | — | 60,138 | — | ||||||||||||||||||
$ | 142,586 | $ | 273,246 | $ | 3,898,125 | $ | 1,148,065 | $ | 2,474,258 | $ | 1,295,544 |
Short Duration Fixed | Small Cap | |||||||||||||||||||||||
Sands Capital Select Growth Fund | Income Fund | Core 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, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
From ordinary income | $ | — | $ | — | $ | 1,109,994 | $ | 1,177,356 | $ | 207,966 | $ | 179,119 | ||||||||||||
From long-term capital gains | — | — | — | — | 2,697,854 | 780 | ||||||||||||||||||
— | — | 1,109,994 | $ | 1,177,356 | $ | 2,905,820 | $ | 179,899 |
Small Cap | Total Return | Ultra Short Duration | ||||||||||||||||||||||
Value Fund | Bond Fund | Fixed Income Fund | ||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011** | 2012 | 2011 | |||||||||||||||||||
From ordinary income | $ | 662,666 | $ | 725,253 | $ | 2,807,030 | $ | 1,208,189 | $ | 9,247,966 | $ | 5,857,004 | ||||||||||||
From long-term capital gains | — | — | — | 271,911 | — | — | ||||||||||||||||||
From tax return of capital | — | — | — | 29,134 | — | — | ||||||||||||||||||
$ | 662,666 | $ | 725,253 | $ | 2,807,030 | $ | 1,509,234 | $ | 9,247,966 | $ | 5,857,004 |
* | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
** | Represents the period from April 1, 2011 through September 30, 2011. |
The following information is computed on a tax basis for each item as of September 30, 2012:
122 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Emerging | Global | |||||||||||
Markets Equity | Focused Equity | Real Estate | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 548,671,773 | $ | 106,304,675 | $ | 24,532,714 | ||||||
Gross unrealized appreciation | 42,397,430 | 10,474,121 | 767,783 | |||||||||
Gross unrealized depreciation | (46,605,862 | ) | (8,997,134 | ) | (559,017 | ) | ||||||
Net unrealized appreciation (depreciation) | (4,208,432 | ) | 1,476,987 | 208,766 | ||||||||
Net unrealized appreciation (depreciation) on foreign currency transactions | (14,693 | ) | — | 505 | ||||||||
Accumulated capital losses | (235,181 | ) | (2,569,583 | ) | — | |||||||
Post-October and qualified late-year losses | (3,700,771 | ) | (9,470,302 | ) | — | |||||||
Other temporary differences | (5,541 | ) | (7,692 | ) | — | |||||||
Undistributed ordinary income | 1,445,860 | 573,675 | 362,260 | |||||||||
Undistributed capital gains | — | — | 116,719 | |||||||||
Accumulated earnings (deficit) | $ | (6,718,758 | ) | $ | (9,996,915 | ) | $ | 688,250 |
International | ||||||||||||||||
Fixed Income | Merger | Mid Cap Value | ||||||||||||||
Fund | Arbitrage Fund | Mid Cap Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 31,780,842 | $ | 331,523,713 | $ | 57,221,729 | $ | 86,573,573 | ||||||||
Gross unrealized appreciation | 775,969 | 6,564,453 | 8,059,629 | 8,549,157 | ||||||||||||
Gross unrealized depreciation | (252,901 | ) | (2,286,987 | ) | (1,236,033 | ) | (2,727,753 | ) | ||||||||
Net unrealized appreciation (depreciation) | $ | 523,068 | $ | 4,277,466 | $ | 6,823,596 | $ | 5,821,404 | ||||||||
Net unrealized appreciation (depreciation) on securities sold short | — | (1,628,683 | ) | — | — | |||||||||||
Net unrealized appreciation (depreciation) on foreign currency transactions | (11,550 | ) | (24,300 | ) | — | — | ||||||||||
Accumulated capital losses | — | — | (154,512,830 | ) | — | |||||||||||
Undistributed ordinary income | 64,487 | 2,820,888 | 479,273 | 284,635 | ||||||||||||
Undistributed capital gains | 57,468 | 36 | — | 295,577 | ||||||||||||
Other temporary differences | (63,825 | ) | 24,300 | 1 | — | |||||||||||
Accumulated earnings (deficit) | $ | 569,648 | $ | 5,469,707 | $ | (147,209,960 | ) | $ | 6,401,616 |
Premium | Sands Capital | Short Duration | ||||||||||||||
Yield Equity | Select Growth | Fixed Income | Small Cap Core | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 115,699,679 | $ | 2,719,450,380 | $ | 92,578,237 | $ | 513,002,160 | ||||||||
Gross unrealized appreciation | 14,690,520 | 785,645,199 | 930,206 | 70,849,013 | ||||||||||||
Gross unrealized depreciation | (1,382,334 | ) | (73,831,162 | ) | (136,577 | ) | (6,129,793 | ) | ||||||||
Net unrealized appreciation (depreciation) | 13,308,186 | 711,814,037 | 793,629 | 64,719,220 | ||||||||||||
Accumulated capital losses | (6,150,986 | ) | (51,348,843 | ) | (3,640,571 | ) | — | |||||||||
Post-October and qualified late-year losses | (950,740 | ) | (63,242,417 | ) | (69,383 | ) | — | |||||||||
Undistributed ordinary income | — | — | 25,033 | 1,666,851 | ||||||||||||
Undistributed capital gains | — | — | — | 4,059,544 | ||||||||||||
Other temporary differences | — | — | (3,177 | ) | — | |||||||||||
Accumulated earnings (deficit) | $ | 6,206,460 | $ | 597,222,777 | $ | (2,894,469 | ) | $ | 70,445,615 |
123 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Ultra Short | ||||||||||||
Total | Duration | |||||||||||
Small Cap Value | Return Bond | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Tax cost of portfolio investments | $ | 37,065,432 | $ | 185,438,959 | $ | 565,801,636 | ||||||
Gross unrealized appreciation | 2,462,827 | 5,175,642 | 3,786,660 | |||||||||
Gross unrealized depreciation | (2,057,192 | ) | (208,045 | ) | (2,036,147 | ) | ||||||
Net unrealized appreciation (depreciation) | 405,635 | 4,967,597 | 1,750,513 | |||||||||
Accumulated capital losses | (27,324,512 | ) | — | (15,987,506 | ) | |||||||
Post - October and qualified late-year losses | (261,765 | ) | — | (1,938,381 | ) | |||||||
Undistributed ordinary income | — | 13,107 | 346,509 | |||||||||
Undistributed capital gains | — | 107,568 | — | |||||||||
Other temporary differences | — | — | (172,021 | ) | ||||||||
Accumulated earnings (deficit) | $ | (27,180,642 | ) | $ | 5,088,272 | $ | (16,000,886 | ) |
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 companies, regulated investment companies, and real estate investment trusts.
As of September 30, 2012, the Funds had the following capital loss carryforwards for federal income tax purposes.
No | ||||||||||||||||||||||||||||||||||||||||
Expiration | No | |||||||||||||||||||||||||||||||||||||||
Short Term Expiring On | Short | Expiration | ||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Term* | Long Term* | Total | |||||||||||||||||||||||||||||||
Emerging Markets Equity Fund | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 205,927 | $ | 29,254 | $ | 235,181 | ||||||||||||||||||||
Focused Equity Fund | — | — | — | — | — | — | — | 2,473,105 | 96,478 | 2,569,583 | ||||||||||||||||||||||||||||||
Mid Cap Fund | — | — | — | — | 83,712,038 | 70,800,792 | — | — | — | 154,512,830 | ||||||||||||||||||||||||||||||
Premium Yield Equity Fund | — | — | — | — | 387,584 | 5,763,402 | — | — | — | 6,150,986 | ||||||||||||||||||||||||||||||
Sands Capital Select Growth Fund | — | — | — | — | — | 51,348,843 | — | — | — | 51,348,843 | ||||||||||||||||||||||||||||||
Short Duration Fixed Income Fund | 96,050 | 1,027,850 | 852,134 | 295,319 | 1,193,230 | 7,423 | 2,269 | 92,293 | 74,003 | 3,640,571 | ||||||||||||||||||||||||||||||
Small Cap Value Fund | — | — | — | — | 9,471,083 | 17,853,429 | — | — | — | 27,324,512 | ||||||||||||||||||||||||||||||
Ultra Short Duration Fixed Income Fund | 5,028,777 | ** | 371,187 | 164,819 | 576,080 | 3,223,694 | 3,334,355 | 933,830 | 1,641,233 | 713,531 | 15,987,506 |
* The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Funds. The provisions of the Act were effective for the Funds’ fiscal year ending September 30, 2012. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses must be utilized before pre-enactment capital loss carryovers may be utilized. Under the Act, new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment law, where capital losses could be carried forward for up to eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.
**Future utilization on losses of ($4,709,395) may be limited.
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
The Funds have analyzed their tax positions taken on Federal income tax returns for all open tax years (tax years ended September 30, 2009 through 2012) and have concluded that no provision for income tax is required in their financial statements.
As of March 31, 2013, the federal tax cost and unrealized appreciation (depreciation) was as follows for the funds:
124 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Net | ||||||||||||||||
Gross | Gross | Unrealized | ||||||||||||||
Federal | Unrealized | Unrealized | Appreciation | |||||||||||||
Tax Cost | Appreciation | Depreciation | (Depreciation) | |||||||||||||
Emerging Markets Equity Fund | $ | 526,004,379 | $ | 69,462,050 | $ | (44,888,520 | ) | $ | 24,573,530 | |||||||
Focused Equity Fund | 147,935,605 | 16,992,805 | (3,088,585 | ) | 13,904,220 | |||||||||||
Global Real Estate Fund | 20,329,877 | 2,158,554 | (173,531 | ) | 1,985,023 | |||||||||||
International Fixed Income Fund | 29,014,392 | 886,171 | (960,119 | ) | (73,948 | ) | ||||||||||
Merger Arbitrage Fund | 467,632,513 | 16,473,121 | (1,410,580 | ) | 15,062,541 | |||||||||||
Mid Cap Fund | 131,686,560 | 20,098,120 | (211,355 | ) | 19,886,765 | |||||||||||
Mid Cap Value Fund | 122,280,435 | 19,521,641 | (1,377,242 | ) | 18,144,399 | |||||||||||
Premium Yield Equity Fund | 165,375,404 | 23,135,456 | (764,198 | ) | 22,371,258 | |||||||||||
Sands Capital Select Growth Fund | 3,502,814,529 | 999,030,975 | (34,292,844 | ) | 964,738,131 | |||||||||||
Short Duration Fixed Income Fund | 87,048,232 | 776,643 | (242,408 | ) | 534,235 | |||||||||||
Small Cap Core Fund | 611,655,525 | 165,086,527 | (1,433,064 | ) | 163,653,463 | |||||||||||
Small Cap Value Fund | 37,787,910 | 3,758,698 | (1,034,317 | ) | 2,724,381 | |||||||||||
Total Return Bond Fund | 162,064,530 | 4,628,440 | (183,824 | ) | 4,444,616 | |||||||||||
Ultra Short Duration Fixed Income Fund | 612,121,195 | 3,723,715 | (2,491,561 | ) | 1,232,154 |
6. Commitments and Contingencies
The Funds indemnify the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
7. Risk 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 the Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
8. Risk Associated with Concentration
Certain Funds invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, the Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility on the Fund’s NAV and magnified effect on the total return.
125 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
9. Fund Mergers
On February 10, 2012, the shareholders of the Old Mutual Barrow Hanley Core Bond Fund and Old Mutual Dwight Short Term Fixed Income Fund (each an “Old Mutual Acquired Fund”) approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Acquired Funds to the Touchstone Total Return Bond Fund and the Touchstone Ultra Short Duration Fixed Income Fund. The merger took place on April 16, 2012. The fiscal year end of the Old Mutual Acquired Funds was March 31. After the merger, the Funds’ fiscal year end changed to September 30.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation (depreciation) immediately before and after the reorganization:
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Old Mutual | ||||||||||||
Dwight | Touchstone | Touchstone | ||||||||||
Hanley Core | Total Return | Total Return | ||||||||||
Bond | Bond | Bond | ||||||||||
Fund | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | — | 605,402 | 605,402 | |||||||||
Net Assets | $ | — | $ | 6,236,803 | $ | 6,236,803 | ||||||
Net Asset Value | $ | — | $ | 10.30 | $ | 10.30 | ||||||
Class C | ||||||||||||
Shares | — | 264,389 | 264,389 | |||||||||
Net Assets | $ | — | $ | 2,719,605 | $ | 2,719,605 | ||||||
Net Asset Value | $ | — | $ | 10.29 | $ | 10.29 | ||||||
Class Y | ||||||||||||
Shares | — | 2,263,150 | 2,263,150 | |||||||||
Net Assets | $ | — | $ | 23,347,204 | $ | 23,347,204 | ||||||
Net Asset Value | $ | — | $ | 10.32 | $ | 10.32 | ||||||
Institutional Class | ||||||||||||
Shares | 3,233,926 | (A) | 3,946,025 | 7,179,951 | ||||||||
Net Assets | $ | 33,345,880 | $ | 40,688,465 | $ | 74,034,345 | ||||||
Net Asset Value | $ | 10.31 | (A) | $ | 10.31 | $ | 10.31 | |||||
Fund Total | ||||||||||||
Shares Outstanding | 3,278,310 | 7,078,966 | 10,312,892 | |||||||||
Net Assets | $ | 33,345,880 | $ | 72,992,077 | $ | 106,337,957 | ||||||
Unrealized Appreciation (Depreciation) | $ | 1,592,683 | $ | 1,907,900 | $ | 3,500,583 |
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Old Mutual | Touchstone | Touchstone | ||||||||||
Dwight | Ultra Short | Ultra Short | ||||||||||
Short Term | Duration | Duration | ||||||||||
Fixed Income | Fixed Income | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | 409,186 | (B) | — | 409,186 | ||||||||
Net Assets | $ | 3,916,077 | $ | — | $ | 3,916,077 | ||||||
Net Asset Value | $ | 9.57 | (B) | $ | — | $ | 9.57 | |||||
Class C | ||||||||||||
Shares | 707,483 | (C) | — | 707,483 | ||||||||
Net Assets | $ | 6,770,889 | $ | — | $ | 6,770,889 | ||||||
Net Asset Value | $ | 9.57 | (C) | $ | — | $ | 9.57 |
126 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Old Mutual | Touchstone | Touchstone | ||||||||||
Dwight | Ultra Short | Ultra Short | ||||||||||
Short Term | Duration | Duration | ||||||||||
Fixed Income | Fixed Income | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Class Y * | ||||||||||||
Shares | 11,510,031 | (D) | — | 11,510,031 | ||||||||
Net Assets | $ | 110,155,119 | $ | — | $ | 110,155,119 | ||||||
Net Asset Value | $ | 9.57 | (D) | $ | — | $ | 9.57 | |||||
Class Z | ||||||||||||
Shares | — | 37,026,535 | 37,026,535 | |||||||||
Net Assets | $ | — | $ | 354,358,018 | $ | 354,358,018 | ||||||
Net Asset Value | $ | — | $ | 9.57 | $ | 9.57 | ||||||
Institutional Class | ||||||||||||
Shares | 2,397,446 | (E) | — | 2,397,446 | ||||||||
Net Assets | $ | 22,944,607 | $ | — | $ | 22,944,607 | ||||||
Net Asset Value | $ | 9.57 | (E) | $ | — | $ | 9.57 | |||||
Fund Total | ||||||||||||
Shares Outstanding | 14,270,340 | 37,026,535 | 52,050,681 | |||||||||
Net Assets | $ | 143,786,692 | $ | 354,358,018 | $ | 498,144,710 | ||||||
Unrealized Appreciation (Depreciation) | $ | 911,511 | $ | 616,185 | $ | 1,527,696 |
(A) | Reflects a 0.9865:1 stock split which occurred on the date of reorganization, April 16, 2012. |
(B) | Reflects a 1.0527:1 stock split which occurred on the date of reorganization, April 16, 2012. |
(C) | Reflects a 1.0524:1 stock split which occurred on the date of reorganization, April 16, 2012. |
(D) | Reflects a 1.0529:1 stock split which occurred on the date of reorganization, April 16, 2012. |
(E) | Reflects a 1.0524:1 stock split which occurred on the date of reorganization, April 16, 2012. |
* The Old Mutual Acquired Fund had Class Z shares outstanding immediately prior to the reorganization, which were exchanged for Class Y shares of the Touchstone Ultra Short Duration Fixed Income Fund.
On March 13, 2012, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Fifth Third Short Term Bond Fund (the “Fifth Third Acquired Fund”), a series of Fifth Third Funds, to the Touchstone Ultra Short Duration Fixed Income Fund (the “Fifth Third Acquiring Fund”). The merger took place on September 10, 2012. The fiscal year end of the Fifth Third Acquired Fund was July 31. After the merger, the Fund’s fiscal year end changed to September 30.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation (depreciation) immediately before and after the reorganization:
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Touchstone | Touchstone | |||||||||||
Fifth Third | Ultra Short | Ultra Short | ||||||||||
Short Term | Duration | Duration | ||||||||||
Bond | Fixed Income | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | 3,134,939 | (A) | 493,785 | 3,628,724 | ||||||||
Net Assets | $ | 29,954,103 | $ | 4,718,051 | $ | 34,672,154 | ||||||
Net Asset Value | 9.55 | (A) | $ | 9.55 | $ | 9.55 |
127 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Touchstone | Touchstone | |||||||||||
Fifth Third | Ultra Short | Ultra Short | ||||||||||
Short Term | Duration | Duration | ||||||||||
Bond | Fixed Income | Fixed Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Class C | ||||||||||||
Shares | 565,823 | (B) | 688,254 | 1,254,077 | ||||||||
Net Assets | $ | 5,406,406 | $ | 6,576,186 | $ | 11,982,592 | ||||||
Net Asset Value | 9.55 | (B) | $ | 9.55 | $ | 9.55 | ||||||
Class Y * | ||||||||||||
Shares | 11,003,756 | (C) | 11,701,258 | 22,705,014 | ||||||||
Net Assets | $ | 105,140,154 | $ | 111,804,391 | $ | 216,944,545 | ||||||
Net Asset Value | 9.55 | (C) | $ | 9.55 | $ | 9.55 | ||||||
Class Z | ||||||||||||
Shares | — | 34,310,738 | 34,310,738 | |||||||||
Net Assets | $ | — | $ | 327,829,219 | $ | 327,829,219 | ||||||
Net Asset Value | $ | — | $ | 9.55 | $ | 9.55 | ||||||
Institutional Class | ||||||||||||
Shares | — | 598,288 | 598,288 | |||||||||
Net Assets | $ | — | $ | 5,715,017 | $ | 5,715,017 | ||||||
Net Asset Value | $ | — | 9.55 | 9.55 | ||||||||
Fund Total | ||||||||||||
Shares Outstanding | 14,666,557 | 47,792,323 | 62,496,841 | |||||||||
Net Assets | $ | 140,500,663 | $ | 456,642,864 | $ | 597,143,527 | ||||||
Unrealized Appreciation (Depreciation) | $ | (554,680 | ) | $ | 1,115,793 | $ | 561,113 |
(A) | Reflects a 1.0022:1 stock split which occurred on the date of reorganization, September 10, 2012. |
(B) | Reflects a 1.0001:1 stock split which occurred on the date of reorganization, September 10, 2012. |
(C) | Reflects a 1.0028:1 stock split which occurred on the date of reorganization, September 10, 2012. |
* The Fifth Third Acquired Fund had Institutional Class shares outstanding immediately prior to the reorganization, which were exchanged for Class Y shares of the Fifth Third Acquiring Fund.
At a meeting held on June 26, 2012, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Emerging Markets Equity Fund II to the Touchstone Emerging Markets Equity Fund. The merger took place on September 17, 2012.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation (depreciation) immediately before and after the reorganization:
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Touchstone | Touchstone | Touchstone | ||||||||||
Emerging | Emerging | Emerging | ||||||||||
Markets | Markets | Markets | ||||||||||
Equity | Equity | Equity | ||||||||||
Fund II | Fund | Fund | ||||||||||
Class A | ||||||||||||
Shares | 511,406 | (A) | 2,322,326 | 2,833,732 | ||||||||
Net Assets | $ | 6,295,683 | $ | 28,589,150 | $ | 34,884,833 | ||||||
Net Asset Value | $ | 12.31 | (A) | $ | 12.31 | $ | 12.31 |
128 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
After | ||||||||||||
Before Reorganization | Reorganization | |||||||||||
Touchstone | Touchstone | Touchstone | ||||||||||
Emerging | Emerging | Emerging | ||||||||||
Markets | Markets | Markets | ||||||||||
Equity | Equity | Equity | ||||||||||
Fund II | Fund | Fund | ||||||||||
Class C | ||||||||||||
Shares | 5,937 | (B) | 399,882 | 405,819 | ||||||||
Net Assets | $ | 72,429 | $ | 4,877,929 | $ | 4,950,358 | ||||||
Net Asset Value | $ | 12.20 | (B) | $ | 12.20 | $ | 12.20 | |||||
Class Y | ||||||||||||
Shares | 1,491,945 | (C) | 16,430,327 | 17,922,272 | ||||||||
Net Assets | $ | 18,403,858 | $ | 202,675,547 | $ | 221,079,405 | ||||||
Net Asset Value | $ | 12.34 | (C) | $ | 12.34 | $ | 12.34 | |||||
Institutional Class | ||||||||||||
Shares | 2,222,580 | (D) | 20,677,219 | 22,899,799 | ||||||||
Net Assets | $ | 27,452,188 | $ | 255,395,482 | $ | 282,847,670 | ||||||
Net Asset Value | $ | 12.35 | (D) | $ | 12.35 | $ | 12.35 | |||||
Fund Total | ||||||||||||
Shares Outstanding | 5,677,643 | 39,829,754 | 44,061,622 | |||||||||
Net Assets | $ | 52,224,158 | $ | 491,538,108 | $ | 543,762,266 | ||||||
Unrealized Appreciation (Depreciation) | $ | 1,279,684 | $ | 1,079,112 | $ | 2,358,796 |
(A) | Reflects a 0.7464:1 stock split which occurred on the date of reorganization, September 17, 2012. |
(B) | Reflects a 0.7489:1 stock split which occurred on the date of reorganization, September 17, 2012. |
(C) | Reflects a 0.7429:1 stock split which occurred on the date of reorganization, September 17, 2012. |
(D) | Reflects a 0.7467:1 stock split which occurred on the date of reorganization, September 17, 2012. |
Assuming theses reorganizations had been completed on October 1, 2011, the Emerging Markets Equity Fund, Total Return Bond Fund and Ultra Short Duration Fixed Income Fund results of operations for the year ended September 30, 2012 would have been as follows:
Touchstone | ||||||||||||
Touchstone | Touchstone | Ultra Short | ||||||||||
Emerging | Total Return | Duration Fixed | ||||||||||
Markets Equity | Bond | Income | ||||||||||
Fund | Fund | Fund | ||||||||||
Net investment income | $ | 7,030,819 | $ | 3,121,184 | $ | 8,755,622 | ||||||
Net realized and unrealized gain (loss) on investments | (7,051,623 | ) | 6,249,215 | 4,593,609 | ||||||||
Net increase (decrease) in asset from operations | (20,804 | ) | 9,370,399 | 13,349,231 |
Because the combined investment portfolios have been managed as single portfolios since the reorganizations were completed, it is not practical to separate the amounts of revenue and earnings to the acquiring funds that have been included in their statements of operations since the reorganizations.
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 (the “Board”) held on February 21, 2013, the Board approved a reorganization providing for the transfer of all assets and liabilities of the Touchstone Focused Equity Fund, a series of the Touchstone Funds Group Trust, to the Touchstone Focused Fund, a series of the Touchstone Strategic Trust, pursuant to an agreement and plan of reorganization. The shareholders of the Touchstone Focused Equity
129 |
Notes to Financial Statements
March 31, 2013 (Unaudited) (Continued)
Fund will receive shares of the Touchstone Focused Fund. The Touchstone Focused Equity Fund will be subsequently liquidated. The reorganization is expected to occur on or about May 17, 2013.
At the same meeting, the Board also approved (subject to shareholder approval) a reorganization providing for the transfer of all assets and liabilities of the Touchstone Short Duration Fixed Income Fund to the Touchstone Ultra Short Duration Fixed Income Fund, each a separate series of the Touchstone Funds GroupTrust, pursuant to an agreement and plan of reorganization. The shareholders of the Touchstone Short Duration Fixed Income Fund will receive shares of the Touchstone Ultra Short Duration Fixed Income Fund. The Touchstone Short Duration Fixed Income Fund will be subsequently liquidated. If approved by shareholders of the Touchstone Short Duration Fixed Income, the reorganization is expected to occur on or about May 17, 2013.
On May 23, 2013, the Board of Trustees (the “Board”) of Touchstone Funds GroupTrust, approved the selection of Forum Securities Limited (“Forum Securities”) as sub-advisor to the Touchstone Global Real Estate Fund (the “Fund”). The change of sub-advisor from Russell Implementation Services, Inc. (“Russell”), the current interim sub-advisor to the Fund, to Forum Securities will be effective on or about the close of business on May 24, 2013.
There were no other subsequent events that necessitated recognition or disclosure on the Funds’ financial statements.
130 |
Other Items (Unaudited)
Proxy Voting Guidelines
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility and information regarding how those proxies were voted during the 12-month period ended June 30 are available as an exhibit to the most recent Statement of Additional Information, which can be obtained without charge upon request by calling toll free 1.800.543.0407. These items are also available on the Securities and Exchange Commission’s (the Commission) website at http://www.sec.gov.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1.800.543.0407. Information on the operation of the Public Reference Room may be obtained by calling 1.800.SEC.0330.
Schedule of Shareholder Expenses
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions; and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2012 through March 31, 2013).
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, 2013” 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 Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table 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.
131 |
Other Items (Unaudited)
(Continued)
Schedule of Shareholder Expenses (Continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
March 31, | October 1, | March 31, | March 31, | |||||||||||||||
2013 | 2012 | 2013 | 2013* | |||||||||||||||
Touchstone Emerging Markets Equity Fund | ||||||||||||||||||
Class A | Actual | 1.69 | % | $ | 1,000.00 | $ | 1,039.70 | $ | 8.60 | |||||||||
Class A | Hypothetical | 1.69 | % | $ | 1,000.00 | $ | 1,016.50 | $ | 8.50 | |||||||||
Class C | Actual | 2.44 | % | $ | 1,000.00 | $ | 1,035.50 | $ | 12.37 | |||||||||
Class C | Hypothetical | 2.44 | % | $ | 1,000.00 | $ | 1,012.77 | $ | 12.23 | |||||||||
Class Y | Actual | 1.35 | % | $ | 1,000.00 | $ | 1,041.40 | $ | 6.87 | |||||||||
Class Y | Hypothetical | 1.35 | % | $ | 1,000.00 | $ | 1,018.20 | $ | 6.79 | |||||||||
Institutional Class | Actual | 1.29 | % | $ | 1,000.00 | $ | 1,041.50 | $ | 6.57 | |||||||||
Institutional Class | Hypothetical | 1.29 | % | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | |||||||||
Touchstone Focused Equity Fund | ||||||||||||||||||
Class A | Actual | 1.20 | % | $ | 1,000.00 | $ | 1,134.00 | $ | 6.38 | |||||||||
Class A | Hypothetical | 1.20 | % | $ | 1,000.00 | $ | 1,018.95 | $ | 6.04 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 1,130.00 | $ | 10.35 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.21 | $ | 9.79 | |||||||||
Class Y | Actual | 0.95 | % | $ | 1,000.00 | $ | 1,135.70 | $ | 5.05 | |||||||||
Class Y | Hypothetical | 0.95 | % | $ | 1,000.00 | $ | 1,020.20 | $ | 4.77 | |||||||||
Institutional Class | Actual | 0.80 | % | $ | 1,000.00 | $ | 1,136.10 | $ | 4.27 | |||||||||
Institutional Class | Hypothetical | 0.80 | % | $ | 1,000.00 | $ | 1,020.93 | $ | 4.04 | |||||||||
Touchstone Global Real Estate Fund | ||||||||||||||||||
Class A | Actual | 1.39 | % | $ | 1,000.00 | $ | 1,116.10 | $ | 7.32 | |||||||||
Class A | Hypothetical | 1.39 | % | $ | 1,000.00 | $ | 1,018.01 | $ | 6.98 | |||||||||
Class C | Actual | 2.14 | % | $ | 1,000.00 | $ | 1,112.10 | $ | 11.26 | |||||||||
Class C | Hypothetical | 2.14 | % | $ | 1,000.00 | $ | 1,014.27 | $ | 10.74 | |||||||||
Class Y | Actual | 1.14 | % | $ | 1,000.00 | $ | 1,117.20 | $ | 6.02 | |||||||||
Class Y | Hypothetical | 1.14 | % | $ | 1,000.00 | $ | 1,019.25 | $ | 5.74 | |||||||||
Institutional Class | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,118.70 | $ | 5.23 | |||||||||
Institutional Class | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | |||||||||
Touchstone International Fixed Income Fund | ||||||||||||||||||
Class A | Actual | 1.09 | % | $ | 1,000.00 | $ | 974.90 | $ | 5.37 | |||||||||
Class A | Hypothetical | 1.09 | % | $ | 1,000.00 | $ | 1,019.49 | $ | 5.49 | |||||||||
Class C | Actual | 1.84 | % | $ | 1,000.00 | $ | 972.10 | $ | 9.06 | |||||||||
Class C | Hypothetical | 1.84 | % | $ | 1,000.00 | $ | 1,015.75 | $ | 9.26 | |||||||||
Class Y | Actual | 0.84 | % | $ | 1,000.00 | $ | 976.40 | $ | 4.14 | |||||||||
Class Y | Hypothetical | 0.84 | % | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | |||||||||
Institutional Class | Actual | 0.69 | % | $ | 1,000.00 | $ | 976.80 | $ | 3.40 | |||||||||
Institutional Class | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.49 | $ | 4.23 |
132 |
Other Items (Unaudited)
(Continued)
Schedule of Shareholder Expenses (Continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
March 31, | October 1, | March 31, | March 31, | |||||||||||||||
2013 | 2012 | 2013 | 2013* | |||||||||||||||
Touchstone Merger Arbitrage Fund | ||||||||||||||||||
Class A | Actual | 2.24 | % | $ | 1,000.00 | $ | 1,028.50 | 11.33 | ** | |||||||||
Class A | Hypothetical | 2.24 | % | $ | 1,000.00 | $ | 1,013.76 | 11.25 | ||||||||||
Class C | Actual | 3.00 | % | $ | 1,000.00 | $ | 1,024.00 | 15.13 | ** | |||||||||
Class C | Hypothetical | 3.00 | % | $ | 1,000.00 | $ | 1,009.98 | 15.02 | ||||||||||
Class Y | Actual | 2.01 | % | $ | 1,000.00 | $ | 1,029.30 | 10.17 | ** | |||||||||
Class Y | Hypothetical | 2.01 | % | $ | 1,000.00 | $ | 1,014.91 | 10.10 | ||||||||||
Institutional Class | Actual | 1.87 | % | $ | 1,000.00 | $ | 1,030.20 | 9.47 | ** | |||||||||
Institutional Class | Hypothetical | 1.87 | % | $ | 1,000.00 | $ | 1,015.61 | 9.40 | ||||||||||
Touchstone Mid Cap Fund | ||||||||||||||||||
Class A | Actual | 1.21 | % | $ | 1,000.00 | $ | 1,219.70 | $ | 6.70 | |||||||||
Class A | Hypothetical | 1.21 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | |||||||||
Class C | Actual | 1.96 | % | $ | 1,000.00 | $ | 1,214.90 | $ | 10.82 | |||||||||
Class C | Hypothetical | 1.96 | % | $ | 1,000.00 | $ | 1,015.16 | $ | 9.85 | |||||||||
Class Y | Actual | 0.93 | % | $ | 1,000.00 | $ | 1,221.50 | $ | 5.14 | |||||||||
Class Y | Hypothetical | 0.93 | % | $ | 1,000.00 | $ | 1,020.30 | $ | 4.67 | |||||||||
Class Z | Actual | 1.21 | % | $ | 1,000.00 | $ | 1,219.40 | $ | 6.70 | |||||||||
Class Z | Hypothetical | 1.21 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,221.60 | $ | 4.93 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.49 | $ | 4.48 | |||||||||
Touchstone Mid Cap Value Fund | ||||||||||||||||||
Class A | Actual | 1.29 | % | $ | 1,000.00 | $ | 1,168.90 | $ | 6.98 | |||||||||
Class A | Hypothetical | 1.29 | % | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | |||||||||
Class C | Actual | 2.04 | % | $ | 1,000.00 | $ | 1,163.80 | $ | 11.01 | |||||||||
Class C | Hypothetical | 2.04 | % | $ | 1,000.00 | $ | 1,014.76 | $ | 10.25 | |||||||||
Class Y | Actual | 1.04 | % | $ | 1,000.00 | $ | 1,169.60 | $ | 5.63 | |||||||||
Class Y | Hypothetical | 1.04 | % | $ | 1,000.00 | $ | 1,019.75 | $ | 5.24 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,170.70 | $ | 4.82 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.49 | $ | 4.48 | |||||||||
Touchstone Premium Yield Equity Fund | ||||||||||||||||||
Class A | Actual | 1.20 | % | $ | 1,000.00 | $ | 1,088.90 | $ | 6.25 | |||||||||
Class A | Hypothetical | 1.20 | % | $ | 1,000.00 | $ | 1,018.95 | $ | 6.04 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 1,085.00 | $ | 10.14 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.21 | $ | 9.80 | |||||||||
Class Y | Actual | 0.95 | % | $ | 1,000.00 | $ | 1,090.30 | $ | 4.95 | |||||||||
Class Y | Hypothetical | 0.95 | % | $ | 1,000.00 | $ | 1,020.19 | $ | 4.78 |
133 |
Other Items (Unaudited)
(Continued)
Schedule of Shareholder Expenses (Continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
March 31, | October 1, | March 31, | March 31, | |||||||||||||||
2013 | 2012 | 2013 | 2013* | |||||||||||||||
Touchstone Sands Capital Select Growth Fund | ||||||||||||||||||
Class A | Actual | 1.30 | % | $ | 1,000.00 | $ | 1,058.50 | $ | 6.65 | |||||||||
Class A | Hypothetical | 1.30 | % | $ | 1,000.00 | $ | 1,018.47 | $ | 6.52 | |||||||||
Class C | Actual | 2.05 | % | $ | 1,000.00 | $ | 1,054.50 | $ | 10.47 | |||||||||
Class C | Hypothetical | 2.05 | % | $ | 1,000.00 | $ | 1,014.73 | $ | 10.27 | |||||||||
Class Y | Actual | 1.05 | % | $ | 1,000.00 | $ | 1,059.70 | $ | 5.37 | |||||||||
Class Y | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.72 | $ | 5.26 | |||||||||
Class Z | Actual | 1.27 | % | $ | 1,000.00 | $ | 1,058.50 | $ | 6.52 | |||||||||
Class Z | Hypothetical | 1.27 | % | $ | 1,000.00 | $ | 1,018.60 | $ | 6.39 | |||||||||
Touchstone Short Duration Fixed Income Fund | ||||||||||||||||||
Class Y | Actual | 0.49 | % | $ | 1,000.00 | $ | 1,003.90 | $ | 2.45 | |||||||||
Class Y | Hypothetical | 0.49 | % | $ | 1,000.00 | $ | 1,022.49 | $ | 2.47 | |||||||||
Class Z | Actual | 0.74 | % | $ | 1,000.00 | $ | 1,002.70 | $ | 3.69 | |||||||||
Class Z | Hypothetical | 0.74 | % | $ | 1,000.00 | $ | 1,021.24 | $ | 3.73 | |||||||||
Touchstone Small Cap Core Fund | ||||||||||||||||||
Class A | Actual | 1.34 | % | $ | 1,000.00 | $ | 1,190.20 | $ | 7.32 | |||||||||
Class A | Hypothetical | 1.34 | % | $ | 1,000.00 | $ | 1,018.25 | $ | 6.74 | |||||||||
Class C | Actual | 2.09 | % | $ | 1,000.00 | $ | 1,186.30 | $ | 11.39 | |||||||||
Class C | Hypothetical | 2.09 | % | $ | 1,000.00 | $ | 1,014.51 | $ | 10.50 | |||||||||
Class Y | Actual | 1.01 | % | $ | 1,000.00 | $ | 1,192.60 | $ | 5.53 | |||||||||
Class Y | Hypothetical | 1.01 | % | $ | 1,000.00 | $ | 1,019.89 | $ | 5.09 | |||||||||
Institutional Class | Actual | 0.94 | % | $ | 1,000.00 | $ | 1,193.10 | $ | 5.14 | |||||||||
Institutional Class | Hypothetical | 0.94 | % | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | |||||||||
Touchstone Small Cap Value Fund | ||||||||||||||||||
Class A | Actual | 1.43 | % | $ | 1,000.00 | $ | 1,152.60 | $ | 7.67 | |||||||||
Class A | Hypothetical | 1.43 | % | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | |||||||||
Class C | Actual | 2.18 | % | $ | 1,000.00 | $ | 1,148.40 | $ | 11.68 | |||||||||
Class C | Hypothetical | 2.18 | % | $ | 1,000.00 | $ | 1,014.06 | $ | 10.95 | |||||||||
Class Y | Actual | 1.18 | % | $ | 1,000.00 | $ | 1,153.90 | $ | 6.34 | |||||||||
Class Y | Hypothetical | 1.18 | % | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | |||||||||
Institutional Class | Actual | 1.03 | % | $ | 1,000.00 | $ | 1,154.70 | $ | 5.53 | |||||||||
Institutional Class | Hypothetical | 1.03 | % | $ | 1,000.00 | $ | 1,019.80 | $ | 5.19 | |||||||||
Touchstone Total Return Bond Fund | ||||||||||||||||||
Class A | Actual | 0.90 | % | $ | 1,000.00 | $ | 1,011.60 | $ | 4.51 | |||||||||
Class A | Hypothetical | 0.90 | % | $ | 1,000.00 | $ | 1,020.44 | $ | 4.53 | |||||||||
Class C | Actual | 1.65 | % | $ | 1,000.00 | $ | 1,006.90 | $ | 8.26 | |||||||||
Class C | Hypothetical | 1.65 | % | $ | 1,000.00 | $ | 1,016.70 | $ | 8.30 |
134 |
Other Items (Unaudited)
(Continued)
Schedule of Shareholder Expenses (Continued)
Expenses | ||||||||||||||||||
Net Expense | Beginning | Ending | Paid During | |||||||||||||||
Ratio | Account | Account | the Six Months | |||||||||||||||
Annualized | Value | Value | Ended | |||||||||||||||
March 31, | October 1, | March 31, | March 31, | |||||||||||||||
2013 | 2012 | 2013 | 2013* | |||||||||||||||
Touchstone Total Return Bond Fund (continued) | ||||||||||||||||||
Class Y | Actual | 0.57 | % | $ | 1,000.00 | $ | 1,013.20 | $ | 2.87 | |||||||||
Class Y | Hypothetical | 0.57 | % | $ | 1,000.00 | 1022.08 | $ | 2.88 | ||||||||||
Institutional Class | Actual | 0.50 | % | $ | 1,000.00 | $ | 1,013.50 | $ | 2.51 | |||||||||
Institutional Class | Hypothetical | 0.50 | % | $ | 1,000.00 | $ | 1,022.44 | $ | 2.52 | |||||||||
Touchstone Ultra Short Duration Fixed Income Fund | ||||||||||||||||||
Class A | Actual | 0.69 | % | $ | 1,000.00 | $ | 1,005.40 | $ | 3.44 | |||||||||
Class A | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.50 | $ | 3.47 | |||||||||
Class C | Actual | 1.19 | % | $ | 1,000.00 | $ | 1,001.80 | $ | 5.94 | |||||||||
Class C | Hypothetical | 1.19 | % | $ | 1,000.00 | $ | 1,018.99 | $ | 6.00 | |||||||||
Class Y | Actual | 0.44 | % | $ | 1,000.00 | $ | 1,005.60 | $ | 2.18 | |||||||||
Class Y | Hypothetical | 0.44 | % | $ | 1,000.00 | $ | 1,022.76 | $ | 2.20 | |||||||||
Class Z | Actual | 0.64 | % | $ | 1,000.00 | $ | 1,004.60 | $ | 3.22 | |||||||||
Class Z | Hypothetical | 0.64 | % | $ | 1,000.00 | $ | 1,021.72 | $ | 3.25 | |||||||||
Institutional Class | Actual | 0.39 | % | $ | 1,000.00 | $ | 1,005.80 | $ | 1.96 | |||||||||
Institutional Class | Hypothetical | 0.39 | % | $ | 1,000.00 | $ | 1,022.98 | $ | 1.97 |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by [182/365]] (to reflect one-half year period). |
** | Excluding interest and dividend expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.34, $12.17, $7.18 and $6.48, respectively. |
Advisory Agreement Approval Disclosure
At a meeting held on November 15, 2012, 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.
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 expense ratios of comparable investment companies; (2) comparative performance information; (3) the Advisor’s and its affiliates’ revenues and costs of providing services to the Funds; and (4) information about the Advisor’s and Sub-Advisors’ personnel. Prior to voting, the Independent Trustees reviewed the proposed continuance of the Investment Advisory Agreement and the Sub-Advisory Agreements with management and with experienced independent legal counsel and received materials from such counsel discussing the legal standards for their consideration of the proposed continuation of the Investment Advisory Agreement and each Sub-Advisory Agreement. The Independent Trustees also
135 |
Other Items (Unaudited)
(Continued)
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 services; (2) the Advisor’s compensation and profitability; (3) a comparison of fees and performance with other advisers; (4) economies of scale; and (5) the terms of the Investment Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of AdvisorServices. 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 those that were affiliates 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 regular on-site compliance visits with 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’sdisaster 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 reports, and that any issues arising from such reports 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 the fees and/or reimbursed a portion of the operating expenses of the Funds. 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 a high level of services to the Funds, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board considered that the Funds’ distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds.
The Board recognized that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to each Fund and the entrepreneurial risk that it assumes as Advisor. Based
136 |
Other Items (Unaudited)
(Continued)
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 June 30, 2012, 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 a portion of the operating expenses 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 also discussed with management certain factors as set forth in the conditions to the Funds’ exemptive order issued by the Securities and Exchange Commission relating to investments by the non-money market Funds in the Touchstone Institutional Money Market Fund. The Board considered the nature and extent of the services provided by the Advisor and the Sub-Advisors to each Fund and a discussion by management with respect to the costs to the Advisor and Sub-Advisors of the portion of the advisory fee and sub-advisory fee attributable to the portion of the non-money market Funds’ assets to be invested in the Touchstone Institutional Money Market Fund. Based on these factors, the Board concluded that the advisory fee and the sub-advisory fee associated with the management of each non-money market Fund were based on services that were in addition to, rather than duplicative of, services provided under the Investment Advisory and Sub-Advisory Agreements with respect to the Touchstone Institutional Money Market Fund.
The Board considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:
Touchstone Emerging Markets Equity 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 currently waiving a portion of the Fund’s fees as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 3rd quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 1st quintile for the twelve-month period ended June 30, 2012. The Board noted the recent improvement in the Fund’s performance. The Board also noted management’s discussion of the Fund’s performance, including the Fund’s outperformance for the period since its inception. 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 high quality of services received by the Fund and the other factors considered.
Touchstone Focused 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 as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 5th quintile for the twelve-month period ended June
137 |
Other Items (Unaudited)
(Continued)
30, 2012. The Board noted the recent improvement in the Fund’s performance. The Board also noted management’s explanation for the Fund’s underperformance and management’s continued monitoring of the Fund’s performance and ability to attract assets. Based upon their review, the Trustees concluded that the Fund’s performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Global Real Estate Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers 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 as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2012. The Board noted management’s explanation for the Fund’s underperformance and management’s continued monitoring of the Fund. Based upon their review, the Trustees concluded that the Fund’s performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone International Fixed Income Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and at the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 3rd quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 4th quintile for the twelve-month period ended June 30, 2012. The Board noted management’s explanation for the Fund’s underperformance and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s performance was being addressed and also found that the advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Merger Arbitrage 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 as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 1st quintile of the Fund’s peer group for the six-month period ended June 30, 2012. Based upon their review, the Trustees concluded that the Fund’s 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 high quality of services received by the Fund and the other factors considered.
Touchstone Mid Cap Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers 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 as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 1st quintile for the twelve- and thirty-six-month periods ended June 30, 2012. 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 high quality of services received by the Fund and the other factors considered.
Touchstone Mid Cap Value Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and at the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees as well as reimbursing a portion of the Fund’s operating expenses. The Board took into account the impact that the relatively small size of the Fund has upon expenses. The Fund’s performance was in the 4th quintile of the Fund’s peer group for the
138 |
Other Items (Unaudited)
(Continued)
six-month period ended June 30, 2012, and the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2012. The Board noted management’s explanation for the Fund’s recent underperformance and management’s continued monitoring of the Fund’s performance and ability to attract assets. 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 high quality of services received by the Fund and the other factors considered.
Touchstone Premium Yield Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 1st quintile for the twelve- and thirty-six-month periods ended June 30, 2012. The Board noted management’s discussion for the Fund’s recent underperformance. 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 high quality of services received by the Fund and the other factors considered.
Touchstone Sands Capital Select Growth Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees as well as reimbursing a portion of the Fund’s operating expenses. The Board took into account management’s discussion of the Fund’s expenses and the addition of breakpoints to the Fund’s base advisory fee in 2011. The Fund’s performance was in the 1st quintile of the Fund’s peer group for the six-, twelve- and thirty-six-month periods ended June 30, 2012. Based upon their review, the Trustees concluded that the Fund’s 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 high quality of services received by the Fund and the other factors considered.
Touchstone Short Duration Fixed Income Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers 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 as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 4th quintile of the Fund’s peer group for the six- and thirty-six-month periods ended June 30, 2012, and the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2012. The Board noted management’s explanation for the Fund’s recent underperformance and management’s continued monitoring of the Fund. 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 high quality of services received by the Fund and the other factors considered.
Touchstone Small Cap Core Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 1st quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2012. Based upon their review, the Trustees concluded that the Fund’s 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 high quality of services received by the Fund and the other factors considered.
Touchstone Small Cap Value Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group.
139 |
Other Items (Unaudited)
(Continued)
The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and reimbursing operating expenses of the Fund. The Board also noted the addition of breakpoints to the Fund’s advisory and sub-advisory fees in connection with the change in the Fund’s sub-advisor in 2010. The Fund’s performance was in the 1st quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2012, and the Fund’s performance was in the 4th quintile for the thirty-six-month period ended June 30, 2012. The Board noted management’s discussion of the Fund’s improved performance since the sub-advisor change in December 2010. 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 high quality of services received by the Fund and the other factors considered.
Touchstone Total Return Bond 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 as well as reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 4th quintile of the Fund’s peer group for the six-month period ended June 30, 2012, and the Fund’s performance was in the 1st quintile for the twelve-month period ended June 30, 2012. Based upon their review, the Trustees concluded that the Fund’s 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 high quality of services received by the Fund and the other factors considered.
Touchstone Ultra Short Duration Fixed Income 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 reimbursing operating expenses of the Fund. The Fund’s performance was in the 3rd quintile of the Fund’s peer group for the six- and thirty-six-month periods ended June 30, 2012, and the Fund’s performance was in the 1st quintile for the twelve- month period ended June 30, 2012. Based upon their review, the Trustees concluded that the Fund’s 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 high quality of services received by the Fund and the other factors considered.
Economies of Scale. The Board considered the effect of each Fund’s current size and potential growth on its performance and expenses. The Board took into account management’s discussion of the 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 Fund that currently did not have such breakpoints was not appropriate at that time. The Board also noted that if a Fund’s assets increase over time, the Fund might realize other economies of scale if assets increase proportionally more than certain other expenses. The Board also considered the fact that, under the Investment Advisory Agreement, the advisory fee payable to the Advisor by a Fund was reduced by the total sub-advisory fee paid by the Advisor to the Fund’s Sub-Advisor.
Conclusion. In considering the renewal of the Funds’ Investment Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Trustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately with respect to each Fund. The Board reached the following conclusions regarding the Funds’ Investment Advisory Agreement with the Advisor, among others: (a) the
140 |
Other Items (Unaudited)
(Continued)
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 performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, is being addressed; and (d) each Fund’s advisory fee is reasonable relative to those of similar funds and the services to be provided by the Advisor. Based on their conclusions, the Trustees determined with respect to each Fund that continuation of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.
In approving the Funds’ respective Sub-Advisory Agreements, the Board considered various factors with respect to each Fund and the applicable Sub-Advisory Agreement, among them: (1) the nature, extent and quality of services provided to the Fund, including the personnel providing such services; (2) the Sub-Advisor’s compensation; (3) a comparison of the sub-advisory fee and performance with other advisers; and (4) the terms of the Sub-Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of Services Provided; Investment Personnel. The Board considered information provided by the Advisor regarding the services provided by each Sub-Advisor, including information presented periodically throughout the previous year. The Board noted the affiliation of the Sub-Advisor to certain of the Funds with the Advisor, noting any potential conflicts of interest. The Board also noted that, on a periodic basis, the Board meets with portfolio managers of the Sub-Advisors to discuss their respective performance and investment processes and strategies. The Board considered each Sub-Advisor’s level of knowledge and investment style. The Board reviewed the experience and credentials of the applicable investment personnel who are responsible for managing the investment of portfolio securities with respect to the Funds. The Board also noted each Sub-Advisor’s brokerage practices.
Sub-Advisor’s Compensation. The Board also took into consideration the financial condition of each Sub-Advisor and any indirect benefits derived by each Sub-Advisor and its affiliates from the Sub-Advisor’s relationship with the Funds. In considering the profitability to each Sub-Advisor of its relationship with the Funds, the Board noted the undertakings of the Advisor to maintain expense limitations for the Funds and also noted that the sub-advisory fees under the Sub-Advisory Agreements were paid by the Advisor out of the advisory fees that it receives under the Investment Advisory Agreement and in addition, with respect to the unaffiliated Sub-Advisors, are negotiated at arm’s length. As a consequence, the profitability to each Sub-Advisor of its relationship with a Fund was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider the potential economies of scale in each Sub-Advisor’s management of the applicable Fund to be a substantial factor in its consideration, although the Board noted that the sub-advisory fee schedule for some of the Funds contained breakpoints that would reduce the sub-advisory fee rate on assets above specified levels as the applicable Fund’s assets increased.
Sub-Advisory Fees and Fund Performance. The Board considered that each Fund pays an advisory fee to the Advisor and that the Advisor pays the sub-advisory fee to the Sub-Advisor 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 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:
141 |
Other Items (Unaudited)
(Continued)
Touchstone Emerging Markets 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 high quality of services received by the Fund and the other factors considered.
Touchstone Focused Equity Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Global Real Estate Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone International Fixed Income Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Mid Cap Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Mid Cap Value Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Premium Yield Equity Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Sands Capital Select Growth Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Short Duration Fixed Income Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Small Cap Core Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Small Cap Value Fund. The Fund’s sub-advisory fee was at the median of its peer group. The Board took into account the addition of breakpoints to the Fund’s sub-advisory fee in connection with the change in the Fund’s sub-advisor in 2010. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
Touchstone Total Return Bond. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and other factors considered.
Touchstone Ultra Short Duration Fixed Income Fund. The Board considered the sub-advisory fees paid to the Sub-Advisor by other Touchstone Funds. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the high quality of services received by the Fund and the other factors considered.
142 |
Other Items (Unaudited)
(Continued)
As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended June 30, 2012, 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 was mindful of the Advisor’s focus on each Sub-Advisor’s performance and the Advisor’s ways of addressing underperformance.
Conclusion. In considering the renewal of the Sub-Advisory Agreement with respect to each Fund, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Board reached the following conclusions regarding each Sub-Advisory Agreement, among others: (a) the Sub-Advisor is qualified to manage each Fund’s assets in accordance with the Fund’s investment objectives and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, is being addressed; (d) each Fund’s advisory fees are reasonable relative to those of similar funds and the services to be provided by the Advisor and the Sub-Advisor; and (e) the Sub-Advisor’s investment strategies are appropriate for pursuing the investment objectives of each Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement with respect to each Fund was in the best interests of the Fund and its shareholders.
143 |
This page intentionally left blank.
This page intentionally left blank.
This page intentionally left blank.
PRIVACY PROTECTION POLICY
We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
• | We collect only the information we need to service your account and administer our business. |
• | We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information. |
• | We make every effort to ensure the accuracy of your information. |
We Collect the Following Nonpublic Personal Information About You:
• | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and |
• | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information. |
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• | We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business. |
• | We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information. |
• | We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document. |
• | We will not sell your personal information to anyone. |
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone Investment Trust, Touchstone Strategic Trust, Touchstone Tax-Free Trust, Touchstone Variable Series Trust, Touchstone Institutional Funds Trust, Touchstone Securities, Inc.,* 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.
147 |
Go paperless, sign up today at:
www.touchstoneinvestments.com/home
Touchstone Investments
Distributor
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203 800.638.8194
www.touchstoneinvestments.com
Investment Advisor
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
4400 Computer Drive
Westborough, MA 01581
Shareholder Service
800.543.0407
* A Member of Western & Southern Financial Group
TSF-56-TFGT-SAR-1303
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed registrants.
Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Touchstone Funds Group Trust |
By (Signature and Title)* | /s/ Jill T. McGruder | |
Jill T. McGruder, President | ||
(principal executive officer) |
Date | 6/3/13 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Jill T. McGruder | |
Jill T. McGruder, President | ||
(principal executive officer) |
Date | 6/3/13 |
By (Signature and Title)* | /s/ Terrie A. Wiedenheft | |
Terrie A. Wiedenheft, Controller and Treasurer | ||
(principal financial officer) |
Date | 6/3/13 |
* Print the name and title of each signing officer under his or her signature