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, 2016
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, 2016
(Unaudited)
Semi-Annual Report
Touchstone Funds Group Trust
Touchstone Arbitrage Fund
Touchstone Emerging Markets Equity 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 Small Cap Fund (formerly known as 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
This report identifies the Funds’ investments on March 31, 2016. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.
2 |
Tabular Presentation of Portfolios of Investments (Unaudited)
March 31, 2016
The tables below provide each Fund’s geographic allocation, sector allocation and/or credit quality. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.
Touchstone Arbitrage Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Long Positions | ||||
Common Stocks | ||||
Information Technology | 23.1 | % | ||
Consumer Discretionary | 21.8 | |||
Financials | 11.2 | |||
Industrials | 7.4 | |||
Energy | 7.3 | |||
Health Care | 5.9 | |||
Utilities | 5.1 | |||
Materials | 4.1 | |||
Commercial Paper | 7.5 | |||
Corporate Bonds | 3.5 | |||
Investment Fund | 6.4 | |||
Cash Collateral for Securities Sold | 17.1 | |||
Short | ||||
Other Assets/Liabilities (Net) | 2.1 | |||
122.5 | ||||
Short Positions | ||||
Common Stocks | ||||
Consumer Discretionary | (8.5 | ) | ||
Financials | (5.7 | ) | ||
Energy | (3.3 | ) | ||
Information Technology | (3.0 | ) | ||
Health Care | (2.0 | ) | ||
(22.5 | ) | |||
Total | 100.0 | % | ||
Touchstone Emerging Markets Equity Fund | ||||
Geographic Allocation | (% of Net Assets) | |||
Common Stocks | ||||
China | 10.9 | % | ||
Taiwan | 9.4 | |||
South Korea | 8.0 | |||
India | 7.4 | |||
Hong Kong | 6.9 | |||
Korea | 5.5 | |||
Brazil | 5.5 | |||
South Africa | 5.4 | |||
Mexico | 4.3 | |||
Cayman Islands | 4.1 | |||
Russia | 3.2 | |||
Thailand | 3.1 | |||
Indonesia | 2.2 | |||
Turkey | 2.1 | |||
Malaysia | 1.8 | |||
Chile | 1.5 | |||
Czech Republic | 1.2 | |||
Singapore | 1.1 | |||
Bermuda | 1.1 | |||
United Arab Emirates | 0.6 | |||
Israel | 0.4 | |||
Netherlands | 0.4 | |||
United States | 0.4 | |||
Luxembourg | 0.4 | |||
United Kingdom | 0.2 | |||
Jersey | 0.2 | |||
Canada | 0.1 | |||
Rights | 0.0 | |||
Investment Funds | 12.3 | |||
Other Assets/Liabilities (Net) | 0.3 | |||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
3 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Merger Arbitrage Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Long Positions | ||||
Common Stocks | ||||
Consumer Discretionary | 17.0 | % | ||
Information Technology | 16.2 | |||
Financials | 10.1 | |||
Industrials | 5.3 | |||
Energy | 5.1 | |||
Health Care | 4.0 | |||
Utilities | 3.6 | |||
Materials | 3.0 | |||
Telecommunication Services | 3.0 | |||
Corporate Bonds | 7.8 | |||
Commercial Mortgage-Backed | 1.3 | |||
Securities | ||||
Commercial Paper | 16.3 | |||
Investment Fund | 23.9 | |||
Cash Collateral for Securities Sold | 1.8 | |||
Short | ||||
Other Assets/Liabilities (Net) | (2.8 | ) | ||
115.6 | ||||
Short Positions | ||||
Common Stocks | ||||
Consumer Discretionary | (5.8 | ) | ||
Financials | (3.9 | ) | ||
Energy | (2.4 | ) | ||
Information Technology | (2.1 | ) | ||
Health Care | (1.4 | ) | ||
(15.6 | ) | |||
Total | 100.0 | % | ||
Touchstone Mid Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Consumer Discretionary | 31.4 | % | ||
Materials | 14.6 | |||
Information Technology | 14.6 | |||
Industrials | 14.3 | |||
Financials | 10.7 | |||
Consumer Staples | 9.1 | |||
Health Care | 2.0 | |||
Investment Funds | 3.8 | |||
Other Assets/Liabilities (Net) | (0.5 | ) | ||
Total | 100.0 | % | ||
Touchstone Mid Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 26.3 | % | ||
Information Technology | 13.0 | |||
Industrials | 10.2 | |||
Consumer Discretionary | 10.0 | |||
Utilities | 9.5 | |||
Health Care | 9.3 | |||
Consumer Staples | 8.4 | |||
Materials | 6.8 | |||
Energy | 5.1 | |||
Investment Funds | 4.3 | |||
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) (Continued)
Touchstone Premium Yield Equity Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 28.4 | % | ||
Health Care | 18.1 | |||
Information Technology | 12.7 | |||
Industrials | 8.5 | |||
Energy | 8.2 | |||
Telecommunication Services | 7.3 | |||
Consumer Staples | 5.7 | |||
Consumer Discretionary | 5.3 | |||
Materials | 5.1 | |||
Investment Funds | 0.6 | |||
Other Assets/Liabilities (Net) | 0.1 | |||
Total | 100.0 | % | ||
Touchstone Sands Capital Select Growth Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Information Technology | 51.7 | % | ||
Health Care | 21.6 | |||
Consumer Discretionary | 17.1 | |||
Financials | 3.9 | |||
Materials | 2.6 | |||
Energy | 2.2 | |||
Investment Funds | 5.3 | |||
Other Assets/Liabilities (Net) | (4.4 | ) | ||
Total | 100.0 | % | ||
Touchstone Small Cap Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Consumer Discretionary | 26.1 | % | ||
Industrials | 22.7 | |||
Financials | 20.8 | |||
Materials | 10.3 | |||
Consumer Staples | 7.5 | |||
Energy | 3.8 | |||
Information Technology | 3.8 | |||
Health Care | 2.7 | |||
Warrants | 0.0 | |||
Investment Funds | 3.1 | |||
Other Assets/Liabilities (Net) | (0.8 | ) | ||
Total | 100.0 | % | ||
Touchstone Small Cap Value Fund | ||||
Sector Allocation* | (% of Net Assets) | |||
Financials | 34.7 | % | ||
Industrials | 23.0 | |||
Materials | 11.0 | |||
Energy | 10.0 | |||
Information Technology | 8.1 | |||
Consumer Discretionary | 5.9 | |||
Consumer Staples | 1.9 | |||
Investment Funds | 8.1 | |||
Other Assets/Liabilities (Net) | (2.7 | ) | ||
Total | 100.0 | % | ||
* Sector Classifications are based upon the Global Industry Classification Standard (GICS®).
5 |
Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)
Touchstone Total Return Bond Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
AAA/Aaa | 57.1 | % | ||
AA/Aa | 9.7 | |||
A/A | 10.0 | |||
BBB/Baa | 15.4 | |||
BB/Ba | 2.7 | |||
B/B | 0.9 | |||
CCC | 0.3 | |||
Not Rated | 3.9 | |||
Total | 100.0 | % | ||
Touchstone Ultra Short Duration Fixed Income Fund | ||||
Credit Quality* | (% of Investment Securities) | |||
AAA/Aaa | 36.4 | % | ||
AA/Aa | 12.1 | |||
A/A | 17.9 | |||
BBB/Baa | 17.6 | |||
BB/Ba | 0.1 | |||
CCC | 0.2 | |||
Not Rated | 15.7 | |||
Total | 100.0 | % | ||
* Credit quality ratings are from Standard & Poor’s (“S&P”) and Moody’s Investors Service (“Moody’s”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.
6 |
Touchstone Arbitrage Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 85.9% | ||||||||
Information Technology — 23.1% | ||||||||
Atmel Corp. | 586,985 | $ | 4,766,318 | |||||
Fairchild Semiconductor International, Inc.*†† | 220,560 | 4,411,200 | ||||||
Heartland Payment Systems, Inc.†† | 54,510 | 5,264,031 | ||||||
Newport Corp.*†† | 157,170 | 3,614,910 | ||||||
SanDisk Corp.†† | 63,080 | 4,799,126 | ||||||
Youku Tudou, Inc. ADR* | 172,850 | 4,751,646 | ||||||
27,607,231 | ||||||||
Consumer Discretionary — 21.8% | ||||||||
Cablevision Systems Corp. - Class A | 112,500 | 3,712,500 | ||||||
Homeinns Hotel Group ADR* | 51,005 | 1,818,328 | ||||||
Jarden Corp.*†† | 83,730 | 4,935,884 | ||||||
Media General, Inc.* | 180,000 | 2,935,800 | ||||||
RONA, Inc. (Canada) | 205,000 | 3,736,169 | ||||||
Starwood Hotels & Resorts Worldwide, Inc.†† | 64,800 | 5,406,264 | ||||||
Time Warner Cable, Inc.†† | 16,890 | 3,456,032 | ||||||
26,000,977 | ||||||||
Financials — 11.2% | ||||||||
Anchor BanCorp Wisconsin, Inc.* | 95,020 | 4,281,601 | ||||||
Astoria Financial Corp.†† | 271,330 | 4,297,867 | ||||||
National Interstate Corp.†† | 88,866 | 2,658,871 | ||||||
NorthStar Realty Finance Corp. REIT†† | 76,560 | 1,004,467 | ||||||
Winthrop Realty Trust REIT | 84,690 | 1,111,980 | ||||||
13,354,786 | ||||||||
Industrials — 7.4% | ||||||||
Blount International, Inc.* | 180,620 | 1,802,587 | ||||||
Powersecure International, Inc.* | 106,380 | 1,988,243 | ||||||
TNT Express N.V. (Netherlands) | 565,000 | 5,070,025 | ||||||
8,860,855 | ||||||||
Energy — 7.3% | ||||||||
Cameron International Corp.* | 75,940 | 5,091,777 | ||||||
Columbia Pipeline Group, Inc. | 144,500 | 3,626,950 | ||||||
8,718,727 | ||||||||
Health Care — 5.9% | ||||||||
Alere, Inc.* | 64,585 | 3,268,647 | ||||||
Baxalta, Inc.†† | 92,770 | 3,747,908 | ||||||
7,016,555 | ||||||||
Utilities — 5.1% | ||||||||
Cleco Corp. | 32,725 | 1,806,747 | ||||||
TECO Energy, Inc.†† | 156,730 | 4,314,777 | ||||||
6,121,524 | ||||||||
Materials —4.1% | ||||||||
Airgas, Inc.†† | 34,180 | 4,841,255 | ||||||
Total Common Stocks | $ | 102,521,910 |
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 3.5% | ||||||||
Consumer Discretionary — 1.3% | ||||||||
$ | 1,500,000 | Time Warner Cable, Inc., | ||||||
5.850%, 5/1/17 | $ | 1,563,651 | ||||||
Financials — 1.2% | ||||||||
1,620,000 | PNC Preferred Funding Trust II, 144a, | |||||||
1.856%, 3/29/49(A)(B) | 1,360,800 | |||||||
Energy —1.0% | ||||||||
1,215,000 | Anadarko Petroleum Corp., | |||||||
5.950%, 9/15/16 | 1,236,095 | |||||||
Total Corporate Bonds | $ | 4,160,546 | ||||||
Commercial Paper — 7.5% | ||||||||
2,300,000 | Deutsche Telekom AG, 0.800%, | |||||||
Due 4/4/16(c) | 2,299,866 | |||||||
2,000,000 | Entergy Corp, 0.940%, Due 4/1/16(c) | 1,999,966 | ||||||
2,300,000 | Ford Motor Credit Co., 1.172%, | |||||||
Due 4/4/16(c) | 2,299,709 | |||||||
2,350,000 | Mohawk Industries Inc., 0.730%, | |||||||
Due 4/4/16(c) | 2,349,885 | |||||||
Total Commercial Paper | $ | 8,949,426 |
Shares | ||||||||
Investment Fund — 6.4% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 7,719,632 | 7,719,632 | ||||||
Total Long Positions | ||||||||
(Cost $121,783,421) | $ | 123,351,514 | ||||||
Securities Sold Short — (22.5%) | ||||||||
Common Stocks — (22.5%) | ||||||||
Consumer Discretionary — (8.5%) | ||||||||
Charter Communications, Inc. - Class A* | (9,135 | ) | (1,849,198 | ) | ||||
Interval Leisure Group, Inc. | (25,920 | ) | (374,285 | ) | ||||
Marriott International, Inc. - Class A | (51,840 | ) | (3,689,971 | ) | ||||
Newell Rubbermaid, Inc. | (72,174 | ) | (3,196,587 | ) | ||||
Nexstar Broadcasting Group, Inc. - Class A | (22,482 | ) | (995,278 | ) | ||||
(10,105,319 | ) | |||||||
Financials — (5.7%) | ||||||||
New York Community Bancorp, Inc. | (271,330 | ) | (4,314,147 | ) | ||||
Old National BanCorp. | (202,391 | ) | (2,467,146 | ) | ||||
(6,781,293 | ) | |||||||
Energy — (3.3%) | ||||||||
Schlumberger Ltd. (Curacao) | (54,372 | ) | (4,009,935 | ) | ||||
Information Technology — (3.0%) | ||||||||
Global Payments, Inc. | (36,449 | ) | (2,380,120 | ) |
7 |
Touchstone Arbitrage Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — (22.5%) (Continued) | ||||||||
Information Technology — (Continued) | ||||||||
Microchip Technology, Inc. | (11,140 | ) | $ | (536,948 | ) | |||
Western Digital Corp. | (15,056 | ) | (711,245 | ) | ||||
(3,628,313 | ) | |||||||
Health Care — (2.0%) | ||||||||
Shire PLC, ADR | (13,748 | ) | (2,363,281 | ) | ||||
Total Common Stocks | $ | (26,888,141 | ) | |||||
Total Securities Sold Short | ||||||||
(Proceeds $25,534,767) | $ | (26,888,141 | ) | |||||
Total — 80.8% | $ | 96,463,373 | ||||||
Cash Collateral for Securities Sold Short — 17.1% | 20,402,426 | |||||||
Other Assets in Excess of Liabilities — 2.1% | 2,511,046 | |||||||
Net Assets — 100.0% | $ | 119,376,845 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2016. |
(B) | Perpetual Bond - A Bond with no definite maturity date. |
(C) | Rate reflects yield at the time of purchase. |
* | Non-income producing security. |
†† | All or a portion of these securities are held as collateral for securities sold short. The total value of the securities held as collateral as of March 31, 2016 was $43,589,728. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
CAD - Canadian Dollar
EUR – Euro
PLC - Public Limited Company
REIT - Real Estate Investment Trust
USD - United States Dollar
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2016, these securities were valued at $1,360,800 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.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stocks | $ | 102,521,910 | $ | — | $ | — | $ | 102,521,910 | ||||||||
Corporate Bonds | — | 4,160,546 | — | 4,160,546 | ||||||||||||
Commercial Paper | — | 8,949,426 | — | 8,949,426 | ||||||||||||
Investment Fund | 7,719,632 | — | — | 7,719,632 | ||||||||||||
Total Assets | $ | 110,241,542 | $ | 13,109,972 | $ | — | $ | 123,351,514 | ||||||||
Liabilities: | ||||||||||||||||
Securities Sold Short | ||||||||||||||||
Common Stocks | $ | (26,888,141 | ) | $ | — | $ | — | $ | (26,888,141 | ) | ||||||
Other Financial Instruments** | ||||||||||||||||
Liabilities: | ||||||||||||||||
Forward Foreign Currency Contracts | — | (276,571 | ) | — | (276,571 | ) | ||||||||||
Total | $ | 83,353,401 | $ | 12,833,401 | $ | — | $ | 96,186,802 |
** Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized depreciation on forward foreign currency contracts.
8 |
Touchstone Arbitrage Fund (Unaudited) (Continued)
Transactions in written options for the period ended March 31, 2016.
Number of | Premiums | |||||||
Contracts | Received | |||||||
Beginning of Period, September 30, 2015 | 840 | $ | 157,041 | |||||
Put Options Expired | (840 | ) | (157,041 | ) | ||||
End of Period, March 31, 2016 | — | $ | — |
Forward Foreign Currency Contracts | ||||||||||||||
Contract to | Unrealized | |||||||||||||
Counterparty | Expiration Date | Receive | Deliver | Depreciation | ||||||||||
Brown Brothers Harriman | 04/29/2016 | USD | 3,570,650 | EUR | 3,136,000 | $ | (875 | ) | ||||||
Brown Brothers Harriman | 04/29/2016 | USD | 836,613 | EUR | 744,000 | (10,713 | ) | |||||||
Brown Brothers Harriman | 04/29/2016 | USD | 699,635 | EUR | 640,000 | (29,247 | ) | |||||||
Brown Brothers Harriman | 05/27/2016 | USD | 3,552,706 | CAD | 4,920,000 | (235,736 | ) | |||||||
$ | (276,571 | ) |
See accompanying Notes to Financial Statements.
9 |
Portfolio of Investments
Touchstone Emerging Markets Equity Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 87.4% | ||||||||
China — 10.9% | ||||||||
Financials — 6.4% | ||||||||
Agricultural Bank of China Ltd.- Class H | 147,000 | $ | 52,885 | |||||
Bank of China Ltd. - Class H | 300,000 | 124,550 | ||||||
China Construction Bank Corp. - Class H | 285,000 | 182,444 | ||||||
China Life Insurance Co. Ltd. - Class H | 31,000 | 76,175 | ||||||
China Merchants Bank Co. Ltd.- Class H | 27,500 | 57,874 | ||||||
China Pacific Insurance Group Co. Ltd.- Class H | 14,600 | 54,830 | ||||||
Haitong Securities Co. Ltd. - Class H | 32,800 | 56,074 | ||||||
Industrial & Commercial Bank of China - Class H | 386,000 | 216,227 | ||||||
Ping An Insurance Group Co. of China Ltd.- Class H | 19,000 | 91,177 | ||||||
Health Care — 0.9% | ||||||||
Sinopharm Group Co. Ltd.- Class H | 30,000 | 135,578 | ||||||
Industrials — 0.7% | ||||||||
Weichai Power Co. Ltd. - Class H | 93,000 | 104,184 | ||||||
Information Technology — 2.1% | ||||||||
Alibaba Group Holding Ltd. ADR* | 1,957 | 154,662 | ||||||
Baidu, Inc. ADR* | 542 | 103,457 | ||||||
NetEase, Inc. ADR | 312 | 44,797 | ||||||
Utilities — 0.8% | ||||||||
Huadian Power International Corp. Ltd.- Class H | 86,000 | 54,873 | ||||||
Huaneng Power International, Inc. - Class H | 62,000 | 55,591 | ||||||
Total China | 1,565,378 | |||||||
Taiwan — 9.4% | ||||||||
Consumer Discretionary — 1.3% | ||||||||
Eclat Textile Co. Ltd. | 4,000 | 52,702 | ||||||
Giant Manufacturing Co. Ltd. | 23,000 | 132,926 | ||||||
Financials — 1.2% | ||||||||
Cathay Financial Holding Co. Ltd. | 45,000 | 53,839 | ||||||
CTBC Financial Holding Co. Ltd. | 106,000 | 55,975 | ||||||
Fubon Financial Holding Co. Ltd. | 43,000 | 54,769 | ||||||
Information Technology — 6.1% | ||||||||
Delta Electronics, Inc. | 28,000 | 123,432 | ||||||
Hon Hai Precision Industry Co. Ltd. | 45,000 | 118,452 | ||||||
MediaTek, Inc. | 7,000 | 53,696 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 117,000 | 583,577 | ||||||
Materials — 0.8% | ||||||||
China Steel Corp. | 86,000 | 59,808 | ||||||
Formosa Plastics Corp. | 21,000 | 52,071 | ||||||
Total Taiwan | 1,341,247 | |||||||
South Korea — 8.0% | ||||||||
Consumer Discretionary — 1.4% | ||||||||
HankookTire Co. Ltd. | 1,435 | 68,257 | ||||||
Kia Motors Corp. | 2,917 | 123,217 | ||||||
Financials — 1.7% | ||||||||
Shinhan Financial Group Co. Ltd. | 7,006 | 246,610 | ||||||
Information Technology — 4.5% | ||||||||
Samsung Electronics Co. Ltd. | 562 | 644,955 | ||||||
Materials — 0.4% | ||||||||
POSCO | 314 | 59,898 | ||||||
Total South Korea | 1,142,937 | |||||||
India — 7.4% | ||||||||
Consumer Discretionary — 1.9% | ||||||||
Bharat Forge Ltd. | 5,180 | 68,273 | ||||||
Mahindra & Mahindra Ltd. | 5,207 | 95,152 | ||||||
Zee Entertainment Enterprises Ltd. | 20,000 | 116,829 | ||||||
Consumer Staples — 0.9% | ||||||||
ITC Ltd. | 25,048 | 124,103 | ||||||
Energy — 1.4% | ||||||||
Oil & Natural Gas Corp. Ltd. | 19,175 | 61,970 | ||||||
Reliance Industries Ltd. | 8,635 | 136,273 | ||||||
Health Care — 0.5% | ||||||||
Lupin Ltd. | 3,560 | 79,522 | ||||||
Information Technology — 1.3% | ||||||||
HCL Technologies Ltd. | 8,284 | 101,814 | ||||||
Infosys Ltd. | 4,725 | 86,814 | ||||||
Materials — 0.6% | ||||||||
UPL Ltd. | 11,375 | 82,054 | ||||||
Telecommunication Services — 0.8% | ||||||||
Bharti Airtel Ltd. | 20,783 | 110,104 | ||||||
Total India | 1,062,908 | |||||||
Hong Kong — 6.9% | ||||||||
Energy — 1.1% | ||||||||
CNOOC Ltd. | 135,000 | 157,551 | ||||||
Financials — 4.2% | ||||||||
AIA Group Ltd. | 21,800 | 123,912 | ||||||
China Overseas Land & Investment Ltd. | 72,000 | 228,036 | ||||||
China Overseas Property Holdings Ltd.* | 70,001 | 10,231 | ||||||
China Resources Land Ltd. | 20,000 | 51,312 | ||||||
Wharf Holdings Ltd. | 33,000 | 180,757 | ||||||
Telecommunication Services — 1.6% | ||||||||
China Mobile Ltd. | 21,000 | 232,574 | ||||||
Total Hong Kong | 984,373 |
10 |
Touchstone Emerging Markets Equity Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 87.4% (Continued) | ||||||||
Korea — 5.5% | ||||||||
Consumer Discretionary — 0.9% | ||||||||
Hyundai Mobis Co. Ltd. | 238 | $ | 51,855 | |||||
Hyundai Motor Co. (Preference) | 867 | 78,783 | ||||||
Consumer Staples — 1.5% | ||||||||
Amorepacific Corp. | 182 | 61,547 | ||||||
LG Household & Health Care Ltd. | 70 | 57,880 | ||||||
Orion Corp. Republic of Korea | 117 | 93,588 | ||||||
Financials — 0.4% | ||||||||
Samsung Fire & Marine Insurance Co. Ltd. | 210 | 54,236 | ||||||
Health Care — 0.4% | ||||||||
Celltrion, Inc.* | 600 | 57,560 | ||||||
Industrials — 0.7% | ||||||||
Samsung C&T Corp. | 405 | 50,563 | ||||||
SK Holdings Co. Ltd. | 268 | 52,304 | ||||||
Information Technology — 0.8% | ||||||||
NAVER Corp. | 116 | 64,643 | ||||||
SK Hynix, Inc. | 2,064 | 50,811 | ||||||
Materials — 0.4% | ||||||||
LG Chem Ltd. | 216 | 61,990 | ||||||
Utilities — 0.4% | ||||||||
Korea Electric Power Corp. | 1,112 | 58,253 | ||||||
Total Korea | 794,013 | |||||||
Brazil — 5.5% | ||||||||
Consumer Discretionary — 0.6% | ||||||||
Lojas Americanas SA (Preference) | 19,603 | 91,265 | ||||||
Consumer Staples — 0.4% | ||||||||
Ambev SA | 10,637 | 55,498 | ||||||
Energy — 0.6% | ||||||||
Petroleo Brasileiro SA* | 26,686 | 78,670 | ||||||
Financials — 1.5% | ||||||||
Banco Bradesco SA (Preference) | 19,795 | 148,419 | ||||||
Itau Unibanco Holding SA (Preference) | 7,831 | 67,755 | ||||||
Health Care — 0.9% | ||||||||
Odontoprev SA | 40,478 | 128,561 | ||||||
Industrials — 0.5% | ||||||||
Localiza Rent A Car SA | 8,685 | 71,714 | ||||||
Information Technology — 0.4% | ||||||||
Totvs SA | 7,921 | 58,995 | ||||||
Materials — 0.6% | ||||||||
Gerdau SA (Preference) | 24,843 | 45,393 | ||||||
Vale SA ADR† | 7,451 | 31,369 | ||||||
Vale SA (Preference) | 3,641 | 11,544 | ||||||
Total Brazil | 789,183 | |||||||
South Africa — 5.4% | ||||||||
Consumer Discretionary — 2.9% | ||||||||
Foschini Group Ltd. | 8,463 | 80,963 | ||||||
Naspers Ltd. - Class H | 1,488 | 207,427 | ||||||
Woolworths Holdings Ltd. | 21,249 | 128,893 | ||||||
�� | ||||||||
Energy — 0.3% | ||||||||
Sasol Ltd. | 1,737 | 51,545 | ||||||
Financials — 1.6% | ||||||||
FirstRand Ltd. | 16,562 | 54,085 | ||||||
Remgro Ltd. | 3,105 | 52,564 | ||||||
Sanlam Ltd. | 13,650 | 63,240 | ||||||
Standard Bank Group Ltd. | 6,662 | 59,611 | ||||||
Telecommunication Services — 0.6% | ||||||||
MTN Group Ltd. | 9,069 | 82,822 | ||||||
Total South Africa | 781,150 | |||||||
Mexico — 4.3% | ||||||||
Consumer Staples — 3.1% | ||||||||
Fomento Economico Mexicano SAB de CV ADR | 1,922 | 185,108 | ||||||
Kimberly-Clark de Mexico SAB de CV - Class A | 60,719 | 146,692 | ||||||
Wal-Mart DE Mexico SAB de CV - Class A | 48,919 | 115,805 | ||||||
Financials — 1.0% | ||||||||
Grupo Financiero Banorte SAB de CV - Class O | 24,112 | 136,643 | ||||||
Health Care — 0.2% | ||||||||
Genomma Lab Internacional SAB DE CV - Class B* | 44,778 | 34,652 | ||||||
Total Mexico | 618,900 | |||||||
Cayman Islands — 4.1% | ||||||||
Consumer Staples — 0.6% | ||||||||
Tingyi Cayman Islands Holding Corp. | 72,000 | 80,446 | ||||||
Information Technology — 3.5% | ||||||||
Tencent Holdings Ltd. | 24,700 | 504,976 | ||||||
Total Cayman Islands | 585,422 | |||||||
Russia — 3.2% | ||||||||
Consumer Staples — 0.4% | ||||||||
Magnit PJSC GDR | 1,490 | 59,443 | ||||||
Energy — 1.4% | ||||||||
Gazprom PAO ADR | 18,392 | 79,270 |
11 |
Touchstone Emerging Markets Equity Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 87.4% (Continued) | ||||||||
Russia — (Continued) | ||||||||
Energy — (Continued) | ||||||||
Lukoil PJSC ADR | 1,771 | $ | 68,449 | |||||
Novatek OAO GDR | 578 | 51,697 | ||||||
Financials — 1.0% | ||||||||
Sberbank of Russia PJSC ADR | 11,851 | 82,246 | ||||||
VTB Bank PJSC GDR | 26,882 | 61,659 | ||||||
Materials — 0.4% | ||||||||
MMC Norilsk Nickel PJSC ADR | 4,340 | 56,246 | ||||||
Total Russia | 459,010 | |||||||
Thailand — 3.1% | ||||||||
Energy — 1.7% | ||||||||
PTT Exploration & Production PCL | 105,700 | 210,733 | ||||||
Thai Oil PCL | 19,700 | 38,712 | ||||||
Financials — 0.8% | ||||||||
Kasikornbank PCL | 21,600 | 107,423 | ||||||
Materials — 0.6% | ||||||||
Siam Cement PCL | 900 | 11,962 | ||||||
Siam Cement PCL (Non-Voting) | 5,700 | 75,409 | ||||||
Total Thailand | 444,239 | |||||||
Indonesia — 2.2% | ||||||||
Financials — 0.9% | ||||||||
Bank Mandiri PerseroTbk PT | 160,600 | 124,692 | ||||||
Telecommunication Services — 1.3% | ||||||||
Telekomunikasi Indonesia PerseroTbk PT | 748,000 | 188,544 | ||||||
Total Indonesia | 313,236 | |||||||
Turkey — 2.1% | ||||||||
Energy — 0.4% | ||||||||
TuprasTurkiye Petrol Rafinerileri AS* | 1,907 | 53,712 | ||||||
Financials — 0.9% | ||||||||
Turkiye Garanti Bankasi AS | 44,810 | 131,101 | ||||||
Telecommunication Services — 0.8% | ||||||||
Turkcell Iletisim Hizmetleri AS | 26,109 | 109,706 | ||||||
Total Turkey | 294,519 | |||||||
Malaysia — 1.8% | ||||||||
Consumer Staples — 1.0% | ||||||||
British American Tobacco Malaysia Bhd | 10,400 | 144,051 | ||||||
Industrials — 0.4% | ||||||||
Sime Darby Bhd | 26,500 | 54,018 | ||||||
Utilities — 0.4% | ||||||||
Tenaga Nasional Bhd | 15,800 | 56,453 | ||||||
Total Malaysia | 254,522 | |||||||
Chile — 1.5% | ||||||||
Utilities — 1.5% | ||||||||
Enersis Americas SA | 767,182 | 212,472 | ||||||
Enersis Chile SA* | 1,514,305 | — | ||||||
Total Chile | 212,472 | |||||||
Czech Republic — 1.2% | ||||||||
Financials — 1.2% | ||||||||
Komercni Banka A/S | 752 | 165,975 | ||||||
Singapore — 1.1% | ||||||||
Industrials — 1.1% | ||||||||
Singapore Technologies Engineering Ltd. | 67,300 | 161,165 | ||||||
Bermuda — 1.1% | ||||||||
Financials — 0.5% | ||||||||
Credicorp Ltd. | 583 | 76,379 | ||||||
Information Technology — 0.6% | ||||||||
VTech Holdings Ltd. | 6,300 | 74,784 | ||||||
Total Bermuda | 151,163 | |||||||
United Arab Emirates — 0.6% | ||||||||
Financials — 0.6% | ||||||||
First Gulf Bank PJSC | 29,207 | 93,434 | ||||||
Israel — 0.4% | ||||||||
Health Care — 0.4% | ||||||||
Teva Pharmaceutical Industries Ltd. ADR | 1,168 | 62,500 | ||||||
Netherlands — 0.4% | ||||||||
Consumer Discretionary — 0.4% | ||||||||
Steinhoff International Holdings N.V. | 9,526 | 62,490 | ||||||
United States — 0.4% | ||||||||
Materials — 0.4% | ||||||||
Southern Copper Corp. | 2,036 | 56,417 | ||||||
Luxembourg — 0.4% | ||||||||
Energy — 0.4% | ||||||||
Tenaris SA ADR | 2,112 | 52,293 | ||||||
United Kingdom — 0.2% | ||||||||
Consumer Staples — 0.2% | ||||||||
SABMiller PLC | 510 | 31,150 |
12 |
Touchstone Emerging Markets Equity Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 87.4% (Continued) | ||||||||
Jersey — 0.2% | ||||||||
Materials — 0.2% | ||||||||
Randgold Resources Ltd. ADR | 325 | $ | 29,513 | |||||
Canada — 0.1% | ||||||||
Materials — 0.1% | ||||||||
Eldorado Gold Corp. | 3,585 | 11,262 | ||||||
Total Common Stocks | $ | 12,520,871 |
Number | ||||||||
of | ||||||||
Rights | ||||||||
Rights — 0.0% | ||||||||
Taiwan — 0.0% | ||||||||
Financials — 0.0% | ||||||||
Fubon Financial Holding Co. Ltd., Expiration 4/13/16 Strike Price TWD 60 | 1,891 | $ | — |
Shares | ||||||||
Investment Funds — 12.3% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 1,735,836 | $ | 1,735,836 | |||||
Invesco Government & Agency Portfolio, Institutional Class, 0.26%**∞Ω | 31,755 | 31,755 | ||||||
Total Investment Funds | $ | 1,767,591 | ||||||
Total Investment Securities —99.7% | ||||||||
(Cost $17,396,732) | $ | 14,288,462 | ||||||
Other Assets in Excess of Liabilities — 0.3% | 46,740 | |||||||
Net Assets — 100.0% | $ | 14,335,202 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $30,733. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
PCL - Public Company Limited
PLC - Public Limited Company
TWD - Taiwanese Dollar
13 |
Touchstone Emerging Markets Equity Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | ||||||||||||||||
China | $ | 302,916 | $ | 1,262,462 | $ | — | $ | 1,565,378 | ||||||||
Taiwan | — | 1,341,247 | — | 1,341,247 | ||||||||||||
South Korea | — | 1,142,937 | — | 1,142,937 | ||||||||||||
India | 161,576 | 901,332 | — | 1,062,908 | ||||||||||||
Hong Kong | — | 984,373 | — | 984,373 | ||||||||||||
Korea | — | 794,013 | — | 794,013 | ||||||||||||
Brazil | 789,183 | — | — | 789,183 | ||||||||||||
South Africa | — | 781,150 | — | 781,150 | ||||||||||||
Mexico | 618,900 | — | — | 618,900 | ||||||||||||
Cayman Islands | — | 585,422 | — | 585,422 | ||||||||||||
Russia | 399,567 | 59,443 | — | 459,010 | ||||||||||||
Thailand | — | 444,239 | — | 444,239 | ||||||||||||
Indonesia | — | 313,236 | — | 313,236 | ||||||||||||
Turkey | — | 294,519 | — | 294,519 | ||||||||||||
Malaysia | 200,504 | 54,018 | — | 254,522 | ||||||||||||
Chile | 212,472 | — | — | 212,472 | ||||||||||||
Czech Republic | — | 165,975 | — | 165,975 | ||||||||||||
Singapore | — | 161,165 | — | 161,165 | ||||||||||||
Bermuda | 76,379 | 74,784 | — | 151,163 | ||||||||||||
United Arab Emirates | — | 93,434 | — | 93,434 | ||||||||||||
Israel | 62,500 | — | — | 62,500 | ||||||||||||
Netherlands | 62,490 | — | — | 62,490 | ||||||||||||
United States | 56,417 | — | — | 56,417 | ||||||||||||
Luxembourg | 52,293 | — | — | 52,293 | ||||||||||||
United Kingdom | — | 31,150 | — | 31,150 | ||||||||||||
Jersey | 29,513 | — | — | 29,513 | ||||||||||||
Canada | 11,262 | — | — | 11,262 | ||||||||||||
Rights | — | — | — | — | ||||||||||||
Investment Funds | 1,767,591 | — | — | 1,767,591 | ||||||||||||
Total | $ | 4,803,563 | $ | 9,484,899 | $ | — | $ | 14,288,462 |
At March 31, 2016, equity securities valued at $144,051 and $93,434 were transferred from Level 1 to Level 2 and from Level 2 to Level 1, respectively. Transfers from Level 1 to Level 2 are due to significant movement of a designated U.S. market index, triggering a systematic valuation model provided by an independent third party to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when the movement of a designated U.S. market index is no longer significant.
See accompanying Notes to Financial Statements.
14 |
Portfolio of Investments
Touchstone Merger Arbitrage Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 67.3% | ||||||||
Consumer Discretionary — 17.0% | ||||||||
Cablevision Systems Corp. - Class A†† | 130,060 | $ | 4,291,979 | |||||
Homeinns Hotel Group ADR* | 56,975 | 2,031,159 | ||||||
Jarden Corp.*†† | 103,870 | 6,123,136 | ||||||
Journal Media Group, Inc. | 344,015 | 4,114,419 | ||||||
Media General, Inc.* | 208,090 | 3,393,948 | ||||||
RONA, Inc. | 235,000 | 4,282,926 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. †† | 70,510 | 5,882,649 | ||||||
Time Warner Cable, Inc. †† | 19,080 | 3,904,150 | ||||||
34,024,366 | ||||||||
Information Technology — 16.2% | ||||||||
Atmel Corp. | 692,949 | 5,626,746 | ||||||
Fairchild Semiconductor International, Inc.*†† | 236,054 | 4,721,080 | ||||||
Heartland Payment Systems, Inc.†† | 62,330 | 6,019,208 | ||||||
Newport Corp.*†† | 175,746 | 4,042,158 | ||||||
SanDisk Corp.†† | 78,260 | 5,954,021 | ||||||
Youku Tudou, Inc. ADR* | 220,180 | 6,052,748 | ||||||
32,415,961 | ||||||||
Financials — 10.1% | ||||||||
Anchor BanCorp Wisconsin, Inc.* | 107,330 | 4,836,290 | ||||||
Astoria Financial Corp.†† | 313,270 | 4,962,197 | ||||||
Hennessy Capital Acquisition Corp. II* | 175,000 | 1,718,500 | ||||||
National Interstate Corp.†† | 180,332 | 5,395,533 | ||||||
NorthStar Realty Finance Corp. REIT†† | 148,098 | 1,943,039 | ||||||
Winthrop Realty Trust REIT | 99,401 | 1,305,135 | ||||||
20,160,694 | ||||||||
Industrials — 5.3% | ||||||||
Blount International, Inc.* | 201,795 | 2,013,914 | ||||||
PowerSecure International, Inc.* | 122,990 | 2,298,683 | ||||||
TNT Express N.V. (Netherlands) | 708,052 | 6,353,701 | ||||||
10,666,298 | ||||||||
Energy — 5.1% | ||||||||
Cameron International Corp.* | 92,070 | 6,173,294 | ||||||
Columbia Pipeline Group, Inc. | 161,435 | 4,052,018 | ||||||
10,225,312 | ||||||||
Health Care — 4.0% | ||||||||
Alere, Inc.* | 74,660 | 3,778,543 | ||||||
Baxalta, Inc.†† | 104,820 | 4,234,728 | ||||||
8,013,271 | ||||||||
Utilities — 3.6% | ||||||||
Cleco Corp. | 36,560 | 2,018,478 | ||||||
TECO Energy, Inc.†† | 189,865 | 5,226,983 | ||||||
7,245,461 | ||||||||
Materials — 3.0% | ||||||||
Airgas, Inc.†† | 42,380 | 6,002,704 | ||||||
Telecommunication Services — 3.0% | ||||||||
NTELOS Holdings Corp.* | 650,759 | 5,986,983 | ||||||
Total Common Stocks | $ | 134,741,050 |
Principal | ||||||||
Amount | ||||||||
Corporate Bonds — 7.8% | ||||||||
Financials — 3.1% | ||||||||
$ | 3,000,000 | American Express Co., | ||||||
6.800%, 9/1/66(A) | 3,007,500 | |||||||
3,845,000 | PNC Preferred Funding Trust II, 144a, | |||||||
1.856%, 3/29/49(A)(B) | 3,229,800 | |||||||
6,237,300 | ||||||||
Consumer Discretionary — 2.0% | ||||||||
3,900,000 | Time Warner Cable, Inc., | |||||||
5.850%, 5/1/17 | 4,065,493 | |||||||
Energy — 1.7% | ||||||||
3,250,000 | Anadarko Petroleum Corp., | |||||||
5.950%, 9/15/16 | 3,306,426 | |||||||
Materials — 1.0% | ||||||||
2,000,000 | Glencore Finance Canada Ltd. | |||||||
(Canada), 144a, 5.800%, 11/15/16 | 2,024,802 | |||||||
Total Corporate Bonds | $ | 15,634,021 | ||||||
Commercial Mortgage-Backed Security — 1.3% | ||||||||
2,750,000 | CFCRE Commercial Mortgage Trust, | |||||||
Ser 2015-RUM, Class C, 144a, | ||||||||
3.186%, 7/15/30(A) | 2,665,657 | |||||||
Commercial Paper — 16.3% | ||||||||
4,000,000 | Agrium Inc., 0.780%, 4/29/16(C) | 3,998,392 | ||||||
4,000,000 | Deutsche Telekom AG, | |||||||
0.800%, 4/4/16(C) | 3,999,768 | |||||||
2,350,000 | Duke Energy Corp., 0.870%, 4/4/16(C) | 2,349,885 | ||||||
4,000,000 | Duke Energy Corp., 0.900%, 4/5/16(C) | 3,999,753 | ||||||
4,000,000 | Entergy Corp., 0.940%, 4/1/16(C) | 3,999,932 | ||||||
4,000,000 | Ford Motor Credit Co., | |||||||
0.850%, 5/2/16(C) | 3,997,508 | |||||||
4,000,000 | LyondellBasell N.V., 0.650%, 4/19/16(C) | 3,998,980 | ||||||
4,000,000 | Mohawk Industries Inc., | |||||||
0.750%, 4/4/16(C) | 3,999,804 | |||||||
2,350,000 | PPG Industries Inc., 0.700%, 4/5/16(C) | 2,349,770 | ||||||
Total Commercial Paper | $ | 32,693,792 |
Shares | ||||||||
Investment Fund — 23.9% | ||||||||
Dreyfus Cash Management, Institutional | ||||||||
Shares, 0.30%∞Ω | 47,883,516 | 47,883,516 | ||||||
Total Long Positions | ||||||||
(Cost $233,322,405) | $ | 233,618,036 |
15 |
Touchstone Merger Arbitrage Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Securities Sold Short — (15.6%) | ||||||||
Common Stocks — (15.6%) | ||||||||
Consumer Discretionary — (5.8%) | ||||||||
Charter Communications, Inc. - Class A* | (10,323 | ) | $ | (2,089,684 | ) | |||
Interval Leisure Group, Inc. | (28,204 | ) | (407,266 | ) | ||||
Marriott International, Inc. - Class A | (56,408 | ) | (4,015,121 | ) | ||||
Newell Rubbermaid, Inc. | (89,538 | ) | (3,965,638 | ) | ||||
Nexstar Broadcasting Group, Inc. - Class A | (25,991 | ) | (1,150,622 | ) | ||||
(11,628,331 | ) | |||||||
Financials — (3.9%) | ||||||||
New York Community Bancorp, Inc. | (313,270 | ) | (4,980,993 | ) | ||||
Old National BanCorp. | (228,615 | ) | (2,786,817 | ) | ||||
(7,767,810 | ) | |||||||
Energy — (2.4%) | ||||||||
Schlumberger Ltd. (Curacao) | (65,925 | ) | (4,861,969 | ) | ||||
Information Technology — (2.1%) | ||||||||
Global Payments, Inc. | (41,683 | ) | (2,721,900 | ) | ||||
Microchip Technology, Inc. | (13,185 | ) | (635,517 | ) | ||||
Western Digital Corp. | (18,682 | ) | (882,538 | ) | ||||
(4,239,955 | ) | |||||||
Health Care — (1.4%) | ||||||||
Shire PLC, ADR | (15,535 | ) | (2,670,466 | ) | ||||
Total Common Stocks | $ | (31,168,531 | ) | |||||
Total Securities Sold Short | ||||||||
(Proceeds $29,681,171) | $ | (31,168,531 | ) | |||||
Total —101.0% | $ | 202,449,505 | ||||||
Cash Collateral for Securities | ||||||||
Sold Short — 1.8% | 3,596,109 | |||||||
Liabilities in Excess of Other Assets — (2.8%) | (5,673,358 | ) | ||||||
Net Assets — 100.0% | $ | 200,372,256 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2016. |
(B) | Perpetual Bond - A Bond with no definite maturity date. |
(C) | Rate reflects yield at the time of purchase. |
* | Non-income producing security. |
†† | All or a portion of these securities are held as collateral for securities sold short. The total value of the securities held as collateral as of March 31, 2016 was $60,416,250. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviations:
ADR - American Depositary Receipt
CAD - Canadian Dollar
EUR - Euro
PLC - Public Limited Company
REIT - Real Estate Investment Trust
USD - United States Dollar
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2016, these securities were valued at $7,920,259 or 4.0% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
16 |
Touchstone Merger Arbitrage Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Common Stocks | $ | 134,741,050 | $ | — | $ | — | $ | 134,741,050 | ||||||||
Corporate Bonds | — | 15,634,021 | — | 15,634,021 | ||||||||||||
Commercial Mortgage-Backed Security | — | 2,665,657 | — | 2,665,657 | ||||||||||||
Commercial Paper | — | 32,693,792 | — | 32,693,792 | ||||||||||||
Investment Fund | 47,883,516 | — | — | 47,883,516 | ||||||||||||
Total Assets | $ | 182,624,566 | 50,993,470 | — | $ | 233,618,036 | ||||||||||
Liabilities: | ||||||||||||||||
Securities Sold Short | ||||||||||||||||
Common Stocks | $ | (31,168,531 | ) | $ | — | $ | — | $ | (31,168,531 | ) | ||||||
Other Financial Instruments** | ||||||||||||||||
Assets: | ||||||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | (338,405 | ) | $ | — | $ | (338,405 | ) | ||||||
Total | $ | 151,456,035 | $ | 50,655,065 | $ | — | $ | 202,111,100 |
** Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized depreciation on forward foreign currency contracts.
Transactions in written options for the period ended March 31, 2016.
Number of | Premiums | |||||||
Contracts | Received | |||||||
Beginning of Period, September 30, 2015 | 1,475 | $ | 275,757 | |||||
Put Options Expired | (1,475 | ) | (275,757 | ) | ||||
End of Period, March 31, 2016 | — | $ | — |
Forward Foreign Currency Contracts
Contract to | Unrealized | |||||||||||||
Counterparty | Expiration Date | Receive | Deliver | Depreciation | ||||||||||
Brown Brothers Harriman | 04/29/2016 | USD | 4,108,542 | EUR | 3,608,416 | $ | (1,006 | ) | ||||||
Brown Brothers Harriman | 04/29/2016 | USD | 1,311,816 | EUR | 1,200,000 | (54,839 | ) | |||||||
Brown Brothers Harriman | 04/29/2016 | USD | 962,555 | EUR | 856,000 | (12,326 | ) | |||||||
Brown Brothers Harriman | 05/27/2016 | USD | 4,072,614 | CAD | 5,640,000 | (270,234 | ) | |||||||
$ | (338,405 | ) |
See accompanying Notes to Financial Statements.
17 |
Portfolio of Investments
Touchstone Mid Cap Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 96.7% | ||||||||
Consumer Discretionary — 31.4% | ||||||||
Cabela’s, Inc.* | 295,190 | $ | 14,372,801 | |||||
CarMax, Inc.*† | 502,970 | 25,701,767 | ||||||
Deckers Outdoor Corp.* | 221,620 | 13,277,254 | ||||||
Dollar Tree, Inc.* | 550,840 | 45,422,266 | ||||||
H&R Block, Inc. | 670,030 | 17,702,193 | ||||||
Hasbro, Inc. | 322,520 | 25,833,852 | ||||||
PulteGroup, Inc. | 1,375,170 | 25,729,431 | ||||||
Tempur Sealy International, Inc.* | 451,220 | 27,429,664 | ||||||
Whirlpool Corp. | 146,230 | 26,371,118 | ||||||
221,840,346 | ||||||||
Materials — 14.6% | ||||||||
Albemarle Corp. | 362,930 | 23,202,115 | ||||||
Ball Corp. | 267,660 | 19,081,481 | ||||||
NewMarket Corp. | 85,420 | 33,848,529 | ||||||
Vulcan Materials Co. | 259,240 | 27,367,967 | ||||||
103,500,092 | ||||||||
Information Technology — 14.6% | ||||||||
Amphenol Corp. - Class A | 582,590 | 33,685,354 | ||||||
NetApp, Inc. | 708,350 | 19,330,871 | ||||||
Paychex, Inc. | 580,000 | 31,325,800 | ||||||
Symantec Corp. | 1,006,200 | 18,493,956 | ||||||
102,835,981 | ||||||||
Industrials — 14.3% | ||||||||
Cintas Corp. | 410,660 | 36,881,375 | ||||||
Copart, Inc.* | 523,770 | 21,354,103 | ||||||
Dover Corp. | 327,291 | 21,054,630 | ||||||
Old Dominion Freight Line, Inc.* | 314,750 | 21,912,895 | ||||||
101,203,003 | ||||||||
Financials — 10.7% | ||||||||
Alleghany Corp.* | 66,360 | 32,927,832 | ||||||
M&T Bank Corp. | 236,200 | 26,218,200 | ||||||
Voya Financial, Inc. | 546,690 | 16,274,961 | ||||||
75,420,993 | ||||||||
Consumer Staples — 9.1% | ||||||||
Brown-Forman Corp. - Class B | 242,040 | 23,833,679 | ||||||
Edgewell Personal Care Co. | 246,900 | 19,882,857 | ||||||
Energizer Holdings, Inc. | 246,990 | 10,005,565 | ||||||
Pricesmart, Inc. | 127,180 | 10,756,884 | ||||||
64,478,985 | ||||||||
Health Care — 2.0% | ||||||||
Tenet Healthcare Corp.* | 494,490 | 14,305,596 | ||||||
Total Common Stocks | $ | 683,584,996 | ||||||
Investment Funds — 3.8% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 22,993,582 | 22,993,582 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.26%**∞Ω | 3,692,861 | 3,692,861 | ||||||
Total Investment Funds | $ | 26,686,443 | ||||||
Total Investment Securities —100.5% | ||||||||
(Cost $673,435,785) | $ | 710,271,439 | ||||||
Liabilities in Excess of Other Assets — (0.5%) | (3,723,898 | ) | ||||||
Net Assets — 100.0% | $ | 706,547,541 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $3,639,444. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
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 | $ | 683,584,996 | $ | — | $ | — | $ | 683,584,996 | ||||||||
Investment Funds | 26,686,443 | — | — | 26,686,443 | ||||||||||||
Total | $ | 710,271,439 | $ | — | $ | — | $ | 710,271,439 |
See accompanying Notes to Financial Statements.
18 |
Portfolio of Investments
Touchstone Mid Cap Value Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 98.6% | ||||||||
Financials — 26.3% | ||||||||
Alexandria Real Estate Equities, Inc., REIT | 70,882 | $ | 6,442,465 | |||||
Allstate Corp. (The) | 88,026 | 5,930,312 | ||||||
American Campus Communities, Inc., REIT | 134,379 | 6,327,907 | ||||||
Ameriprise Financial, Inc. | 45,275 | 4,256,303 | ||||||
Blackstone Mortgage Trust, Inc. - Class A, REIT | 178,446 | 4,793,060 | ||||||
Brixmor Property Group, Inc., REIT | 217,966 | 5,584,289 | ||||||
E*TRADE Financial Corp.* | 157,005 | 3,845,052 | ||||||
Equinix, Inc., REIT | 15,208 | 5,029,438 | ||||||
Hancock Holding Co. | 170,086 | 3,905,175 | ||||||
Hanover Insurance Group, Inc. (The) | 50,675 | 4,571,898 | ||||||
Hartford Financial Services Group, Inc. | 91,387 | 4,211,113 | ||||||
Host Hotels & Resorts, Inc., REIT | 286,313 | 4,781,427 | ||||||
Investors Bancorp, Inc. | 401,401 | 4,672,308 | ||||||
M&T Bank Corp. | 40,650 | 4,512,150 | ||||||
Reinsurance Group of America, Inc. | 55,201 | 5,313,096 | ||||||
SunTrust Banks, Inc. | 120,131 | 4,334,326 | ||||||
TCF Financial Corp. | 269,943 | 3,309,501 | ||||||
Unum Group | 164,777 | 5,094,905 | ||||||
Zions Bancorporation | 194,623 | 4,711,823 | ||||||
91,626,548 | ||||||||
Information Technology — 13.0% | ||||||||
Cadence Design Systems, Inc.* | 240,758 | 5,677,074 | ||||||
Citrix Systems, Inc.* | 74,998 | 5,893,343 | ||||||
Diebold, Inc. | 163,491 | 4,726,525 | ||||||
Fidelity National Information Services, Inc. | 88,796 | 5,621,675 | ||||||
IAC/InterActiveCorp. | 55,367 | 2,606,678 | ||||||
Juniper Networks, Inc. | 178,242 | 4,546,953 | ||||||
Microchip Technology, Inc.† | 115,308 | 5,557,846 | ||||||
Qorvo, Inc.* | 123,577 | 6,229,517 | ||||||
Synopsys, Inc.* | 90,422 | 4,380,042 | ||||||
45,239,653 | ||||||||
Industrials — 10.2% | ||||||||
Aercap Holdings N.V.* | 163,043 | 6,319,547 | ||||||
Clean Harbors, Inc.* | 62,008 | 3,059,475 | ||||||
Dover Corp. | 60,079 | 3,864,882 | ||||||
Fluor Corp. | 66,693 | 3,581,414 | ||||||
KAR Auction Services, Inc. | 156,874 | 5,983,174 | ||||||
Parker Hannifin Corp. | 31,307 | 3,477,582 | ||||||
Regal-Beloit Corp. | 70,690 | 4,459,832 | ||||||
Xylem, Inc. | 119,277 | 4,878,429 | ||||||
35,624,335 | ||||||||
Consumer Discretionary — 10.0% | ||||||||
American Eagle Outfitters, Inc.† | 251,355 | 4,190,088 | ||||||
Aramark | 103,072 | 3,413,745 | ||||||
BorgWarner, Inc. | 134,592 | 5,168,333 | ||||||
Cabela’s, Inc.* | 93,812 | 4,567,706 | ||||||
Dollar General Corp. | 64,737 | 5,541,487 | ||||||
Harley-Davidson, Inc. | 88,316 | 4,533,260 | ||||||
LKQ Corp.* | 157,419 | 5,026,389 | ||||||
Ralph Lauren Corp. | 25,617 | 2,465,892 | ||||||
34,906,900 | ||||||||
Utilities — 9.5% | ||||||||
AGL Resources, Inc. | 39,284 | 2,558,960 | ||||||
Edison International | 88,245 | 6,343,933 | ||||||
Great Plains Energy, Inc. | 203,277 | 6,555,683 | ||||||
Pinnacle West Capital Corp. | 87,244 | 6,549,407 | ||||||
Portland General Electric Co. | 149,096 | 5,887,801 | ||||||
SCANA Corp. | 76,312 | 5,353,287 | ||||||
33,249,071 | ||||||||
Health Care — 9.3% | ||||||||
AmerisourceBergen Corp. | 27,945 | 2,418,640 | ||||||
Charles River Laboratories International, Inc.* | 57,737 | 4,384,548 | ||||||
Cooper Cos, Inc. (The) | 39,622 | 6,100,599 | ||||||
DENTSPLY SIRONA, Inc. | 88,796 | 5,472,497 | ||||||
Patterson Cos., Inc. | 100,481 | 4,675,381 | ||||||
Quest Diagnostics, Inc. | 69,256 | 4,948,341 | ||||||
St. Jude Medical, Inc. | 79,595 | 4,377,725 | ||||||
32,377,731 | ||||||||
Consumer Staples — 8.4% | ||||||||
Darling International, Inc.* | 438,436 | 5,774,201 | ||||||
Hain Celestial Group, Inc. (The)* | 117,421 | 4,803,693 | ||||||
Hershey Co. (The) | 59,197 | 5,451,452 | ||||||
Ingredion, Inc. | 37,688 | 4,024,702 | ||||||
JM Smucker Co. (The) | 20,172 | 2,619,132 | ||||||
TreeHouse Foods, Inc.* | 77,349 | 6,710,026 | ||||||
29,383,206 | ||||||||
Materials — 6.8% | ||||||||
Albemarle Corp. | 77,959 | 4,983,919 | ||||||
Allegheny Technologies, Inc.† | 171,997 | 2,803,551 | ||||||
Bemis Co., Inc. | 59,941 | 3,103,745 | ||||||
Cabot Corp. | 76,772 | 3,710,391 | ||||||
FMC Corp. | 80,115 | 3,234,243 | ||||||
Owens-Illinois, Inc.* | 164,268 | 2,621,717 | ||||||
Scotts Miracle-Gro Co. (The) - Class A | 46,535 | 3,386,352 | ||||||
23,843,918 | ||||||||
Energy — 5.1% | ||||||||
EQT Corp. | 68,267 | 4,591,638 | ||||||
Newfield Exploration Co.* | 155,168 | 5,159,336 | ||||||
Pioneer Natural Resources Co. | 40,151 | 5,650,852 | ||||||
Spectra Energy Corp. | 80,694 | 2,469,236 | ||||||
17,871,062 | ||||||||
Total Common Stocks | $ | 344,122,424 |
19 |
Touchstone Mid Cap Value Fund (Unaudited) (Continued)
Market | ||||||||
Shares | Value | |||||||
Investment Funds — 4.3% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 4,570,829 | $ | 4,570,829 | |||||
Invesco Government & Agency Portfolio, Institutional Class, 0.26%**∞Ω | 10,647,766 | 10,647,766 | ||||||
Total Investment Funds | $ | 15,218,595 | ||||||
Total Investment Securities —102.9% | ||||||||
(Cost $326,263,876) | $ | 359,341,019 | ||||||
Liabilities in Excess of Other Assets — (2.9%) | (10,261,135 | ) | ||||||
Net Assets — 100.0% | $ | 349,079,884 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $10,253,281. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
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 | $ | 344,122,424 | $ | — | $ | — | $ | 344,122,424 | ||||||||
Investment Funds | 15,218,595 | — | — | 15,218,595 | ||||||||||||
Total | $ | 359,341,019 | $ | — | $ | — | $ | 359,341,019 |
See accompanying Notes to Financial Statements.
20 |
Portfolio of Investments
Touchstone Premium Yield Equity Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 99.3% | ||||||||
Financials — 28.4% | ||||||||
Bank of Montreal (Canada) | 42,267 | $ | 2,565,184 | |||||
CME Group, Inc. | 27,842 | 2,674,224 | ||||||
Digital Realty Trust, Inc., REIT | 49,445 | 4,375,388 | ||||||
HCP, Inc., REIT | 94,597 | 3,081,970 | ||||||
Hospitality Properties Trust, REIT | 107,679 | 2,859,954 | ||||||
Host Hotels & Resorts, Inc., REIT | 143,908 | 2,403,264 | ||||||
Lamar Advertising Co., REIT | 54,181 | 3,332,132 | ||||||
Omega Healthcare Investors, Inc., REIT | 41,931 | 1,480,164 | ||||||
PacWest Bancorp | 38,357 | 1,424,963 | ||||||
Senior Housing Properties Trust, REIT | 61,052 | 1,092,220 | ||||||
Toronto-Dominion Bank (The) (Canada) | 69,963 | 3,017,504 | ||||||
Ventas, Inc., REIT | 47,634 | 2,999,037 | ||||||
Wells Fargo & Co. | 56,381 | 2,726,585 | ||||||
Weyerhaeuser Co., REIT | 194,896 | 6,037,878 | ||||||
40,070,467 | ||||||||
Health Care — 18.1% | ||||||||
AbbVie, Inc. | 86,211 | 4,924,372 | ||||||
GlaxoSmithKline PLC, ADR | 101,784 | 4,127,341 | ||||||
Johnson & Johnson | 46,963 | 5,081,397 | ||||||
Merck & Co., Inc. | 91,242 | 4,827,614 | ||||||
Novartis AG, ADR | 34,887 | 2,527,214 | ||||||
Pfizer, Inc. | 140,355 | 4,160,122 | ||||||
25,648,060 | ||||||||
Information Technology — 12.7% | ||||||||
Cisco Systems, Inc. | 191,877 | 5,462,738 | ||||||
Microchip Technology, Inc. | 77,153 | 3,718,775 | ||||||
Microsoft Corp. | 72,790 | 4,020,192 | ||||||
QUALCOMM, Inc. | 91,817 | 4,695,521 | ||||||
17,897,226 | ||||||||
Industrials — 8.5% | ||||||||
Covanta Holding Corp. | 70,780 | 1,193,351 | ||||||
Eaton Corp. PLC (Ireland) | 40,925 | 2,560,268 | ||||||
General Electric Co. | 173,688 | 5,521,542 | ||||||
United Parcel Service, Inc. - Class B | 26,165 | 2,759,623 | ||||||
12,034,784 | ||||||||
Energy — 8.2% | ||||||||
ONEOK, Inc. | 128,813 | 3,846,356 | ||||||
Pembina Pipeline Corp. (Canada) | 46,963 | 1,267,062 | ||||||
Plains GP Holdings LP - Class A | 155,984 | 1,355,501 | ||||||
Spectra Energy Corp. | 166,383 | 5,091,320 | ||||||
11,560,239 | ||||||||
Telecommunication Services — 7.3% | ||||||||
AT&T, Inc. | 112,711 | 4,414,890 | ||||||
BCE, Inc. (Canada) | 28,849 | 1,313,783 | ||||||
Verizon Communications, Inc. | 37,906 | 2,049,956 | ||||||
Vodafone Group PLC, ADR | 78,831 | 2,526,534 | ||||||
10,305,163 | ||||||||
Consumer Staples — 5.7% | ||||||||
JM Smucker Co. (The) | 22,613 | 2,936,072 | ||||||
Procter & Gamble Co. (The) | 62,394 | 5,135,650 | ||||||
8,071,722 | ||||||||
Consumer Discretionary — 5.3% | ||||||||
Coach, Inc. | 101,977 | 4,088,258 | ||||||
L Brands, Inc. | 38,032 | 3,339,590 | ||||||
7,427,848 | ||||||||
Materials — 5.1% | ||||||||
Domtar Corp. | 81,514 | 3,301,317 | ||||||
LyondellBasell Industries N.V. - Class A (Netherlands) | 45,957 | 3,933,000 | ||||||
7,234,317 | ||||||||
Total Common Stocks | $ | 140,249,826 | ||||||
Investment Fund — 0.6% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 885,852 | 885,852 | ||||||
Total Investment Securities — 99.9% | ||||||||
(Cost $139,601,625) | $ | 141,135,678 | ||||||
Other Assets in Excess of Liabilities — 0.1% | 170,687 | |||||||
Net Assets — 100.0% | $ | 141,306,365 |
∞ Open-End Fund.
Ω Represents the 7-day SEC yield as of March 31, 2016.
Portfolio Abbreviations:
ADR - American Depositary Receipt
LP - Limited Partnership
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 | $ | 140,249,826 | $ | — | $ | — | $ | 140,249,826 | ||||||||
Investment Fund | 885,852 | — | — | 885,852 | ||||||||||||
Total | $ | 141,135,678 | $ | — | $ | — | $ | 141,135,678 |
See accompanying Notes to Financial Statements.
21 |
Portfolio of Investments
Touchstone Sands Capital Select Growth Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 99.1% | ||||||||
Information Technology — 51.7% | ||||||||
Adobe Systems, Inc.* | 1,764,134 | $ | 165,475,769 | |||||
Alibaba Group Holding Ltd. ADR* | 1,789,867 | 141,453,189 | ||||||
Alphabet, Inc. - Class A* | 221,875 | 169,268,437 | ||||||
Alphabet, Inc. - Class C* | 82,725 | 61,625,989 | ||||||
Baidu, Inc. ADR* | 708,780 | 135,291,926 | ||||||
Facebook, Inc. - Class A* | 2,515,880 | 287,061,908 | ||||||
Linkedln Corp. - Class A* | 730,625 | 83,546,969 | ||||||
Mobileye N.V. (Netherlands)*† | 1,711,648 | 63,827,354 | ||||||
Palo Alto Networks, Inc.* | 673,400 | 109,858,476 | ||||||
Salesforce.com, Inc.* | 3,864,612 | 285,324,304 | ||||||
Splunk, Inc.* | 1,705,844 | 83,466,947 | ||||||
Visa, Inc. - Class A | 4,832,199 | 369,566,579 | ||||||
1,955,767,847 | ||||||||
Health Care — 21.6% | ||||||||
Alexion Pharmaceuticals, Inc.* | 823,730 | 114,679,691 | ||||||
athenahealth, Inc.*† | 560,551 | 77,793,268 | ||||||
Biogen, Inc.* | 312,090 | 81,243,269 | ||||||
BioMarin Pharmaceutical, Inc.* | 1,269,681 | 104,723,289 | ||||||
Cerner Corp.* | 1,394,331 | 73,843,770 | ||||||
Edwards Lifesciences Corp.* | 1,020,677 | 90,033,918 | ||||||
Illumina, Inc.* | 618,257 | 100,225,642 | ||||||
Incyte Corp. Ltd.* | 608,062 | 44,066,253 | ||||||
Regeneron Pharmaceuticals, Inc.* | 366,931 | 132,256,610 | ||||||
818,865,710 | ||||||||
Consumer Discretionary — 17.1% | ||||||||
Amazon.com, Inc.* | 293,000 | 173,936,520 | ||||||
Chipotle Mexican Grill, Inc.* | 249,000 | 117,271,530 | ||||||
Netflix, Inc.* | 1,025,000 | 104,785,750 | ||||||
Priceline Group, Inc. (The)* | 122,132 | 157,423,263 | ||||||
Under Armour, Inc. - Class A* | 1,100,000 | 93,313,000 | ||||||
646,730,063 | ||||||||
Financials — 3.9% | ||||||||
Charles Schwab Corp. (The) | 3,484,000 | 97,621,680 | ||||||
LendingClub Corp.*† | 5,975,303 | 49,595,015 | ||||||
147,216,695 | ||||||||
Materials — 2.6% | ||||||||
Monsanto Co. | 1,123,500 | 98,575,890 | ||||||
Energy — 2.2% | ||||||||
Schlumberger Ltd. (Curacao) | 1,099,482 | 81,086,797 | ||||||
Total Common Stocks | $ | 3,748,243,002 | ||||||
Investment Funds — 5.3% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 37,782,607 | 37,782,607 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.26%**∞Ω | 162,942,959 | 162,942,959 | ||||||
Total Investment Funds | $ | 200,725,566 | ||||||
Total Investment Securities —104.4% | ||||||||
(Cost $2,738,977,113) | $ | 3,948,968,568 | ||||||
Liabilities in Excess of Other Assets — (4.4%) | (165,009,922 | ) | ||||||
Net Assets — 100.0% | $ | 3,783,958,646 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $161,129,553. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviation:
ADR - American Depositary Receipt
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 | $ | 3,748,243,002 | $ | — | $ | — | $ | 3,748,243,002 | ||||||||
Investment Funds | 200,725,566 | — | — | 200,725,566 | ||||||||||||
Total | $ | 3,948,968,568 | $ | — | $ | — | $ | 3,948,968,568 |
See accompanying Notes to Financial Statements.
22 |
Portfolio of Investments
Touchstone Small Cap Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 97.7% | ||||||||
Consumer Discretionary — 26.1% | ||||||||
American Eagle Outfitters, Inc.† | 580,049 | $ | 9,669,417 | |||||
Cabela’s, Inc.* | 493,946 | 24,050,231 | ||||||
Dana Holding Corp. | 897,380 | 12,644,084 | ||||||
Deckers Outdoor Corp.* | 277,330 | 16,614,840 | ||||||
Service Corp. International | 1,100,170 | 27,152,196 | ||||||
Sturm Ruger & Co., Inc. | 298,652 | 20,421,824 | ||||||
Tempur Sealy International, Inc.* | 468,660 | 28,489,841 | ||||||
Vista Outdoor, Inc.* | 545,650 | 28,324,692 | ||||||
167,367,125 | ||||||||
Industrials — 22.7% | ||||||||
GATX Corp.† | 412,910 | 19,613,225 | ||||||
Kaman Corp. | 504,548 | 21,539,154 | ||||||
Landstar System, Inc. | 302,280 | 19,530,311 | ||||||
Matson, Inc. | 480,135 | 19,287,023 | ||||||
Orbital ATK, Inc. | 495,482 | 43,077,205 | ||||||
USG Corp.* | 910,230 | 22,582,806 | ||||||
145,629,724 | ||||||||
Financials — 20.8% | ||||||||
Alexander & Baldwin, Inc. | 791,448 | 29,030,313 | ||||||
Corrections Corp. of America REIT | 753,340 | 24,144,547 | ||||||
Eaton Vance Corp. | 363,439 | 12,182,475 | ||||||
First Industrial Realty Trust, Inc. REIT | 1,213,641 | 27,598,196 | ||||||
MBIA, Inc.* | 1,441,784 | 12,759,788 | ||||||
Tejon Ranch Co.* | 330,351 | 6,795,320 | ||||||
White Mountains Insurance Group Ltd. (Bermuda) | 26,609 | 21,356,384 | ||||||
133,867,023 | ||||||||
Materials — 10.3% | ||||||||
NewMarket Corp. | 102,463 | 40,601,988 | ||||||
Olin Corp. | 1,087,660 | 18,892,654 | ||||||
Tredegar Corp. | 414,900 | 6,522,228 | ||||||
66,016,870 | ||||||||
Consumer Staples — 7.5% | ||||||||
Energizer Holdings, Inc. | 561,860 | 22,760,949 | ||||||
PriceSmart, Inc. | 299,305 | 25,315,217 | ||||||
48,076,166 | ||||||||
Energy — 3.8% | ||||||||
Superior Energy Services, Inc. | 1,050,420 | 14,065,124 | ||||||
World Fuel Services Corp. | 216,264 | 10,506,105 | ||||||
24,571,229 | ||||||||
Information Technology — 3.8% | ||||||||
DST Systems, Inc. | 215,630 | 24,316,595 | ||||||
Health Care — 2.7% | ||||||||
Tenet Healthcare Corp.* | 608,247 | 17,596,586 | ||||||
Total Common Stocks | $ | 627,441,318 | ||||||
Warrants — 0.0% | ||||||||
Financials — 0.0% | ||||||||
Tejon Ranch Co., Expiration 8/31/16* | 63,145 | 6 | ||||||
Investment Funds — 3.1% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 6,218,150 | 6,218,150 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.26%**∞Ω | 13,803,365 | 13,803,365 | ||||||
Total Investment Funds | $ | 20,021,515 | ||||||
Total Investment Securities —100.8% | ||||||||
(Cost $522,669,230) | $ | 647,462,839 | ||||||
Liabilities in Excess of Other Assets — (0.8%) | (5,034,867 | ) | ||||||
Net Assets — 100.0% | $ | 642,427,972 |
* | Non-income producing security. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $13,522,834. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviation:
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 | $ | 627,441,318 | $ | — | $ | — | $ | 627,441,318 | ||||||||
Warrants | 6 | — | — | 6 | ||||||||||||
Investment Funds | 20,021,515 | — | — | 20,021,515 | ||||||||||||
Total | $ | 647,462,839 | $ | — | $ | — | $ | 647,462,839 |
See accompanying Notes to Financial Statements.
23 |
Portfolio of Investments
Touchstone Small Cap Value Fund – March 31, 2016 (Unaudited)
Market | ||||||||
Shares | Value | |||||||
Common Stocks — 94.6% | ||||||||
Financials — 34.7% | ||||||||
Chemical Financial Corp.† | 19,814 | $ | 707,162 | |||||
Cohen & Steers, Inc. | 23,627 | 919,563 | ||||||
Columbia Banking System, Inc. | 19,949 | 596,874 | ||||||
Corporate Office Properties Trust REIT | 41,937 | 1,100,427 | ||||||
First Financial Bancorp | 25,128 | 456,827 | ||||||
First Merchants Corp. | 3,802 | 89,613 | ||||||
First Midwest Bancorp, Inc. | 32,281 | 581,704 | ||||||
FNB Corp. | 105,386 | 1,371,072 | ||||||
Greenhill & Co., Inc. | 23,638 | 524,764 | ||||||
Hancock Holding Co. | 34,556 | 793,406 | ||||||
Iberiabank Corp. | 22,246 | 1,140,552 | ||||||
National Bank Holdings Corp. - Class A | 37,900 | 772,781 | ||||||
New Residential Investment Corp. REIT | 41,738 | 485,413 | ||||||
Northwest Bancshares, Inc. | 55,486 | 749,616 | ||||||
Old National Bancorp. | 110,525 | 1,347,300 | ||||||
Outfront Media, Inc. REIT | 34,987 | 738,226 | ||||||
Parkway Properties, Inc. REIT | 57,837 | 905,727 | ||||||
Potlatch Corp. REIT | 32,158 | 1,012,977 | ||||||
Prosperity Bancshares, Inc. | 22,225 | 1,031,018 | ||||||
Tanger Factory Outlet Centers, Inc. REIT | 24,612 | 895,631 | ||||||
UMB Financial Corp. | 18,298 | 944,726 | ||||||
Washington REIT | 18,406 | 537,639 | ||||||
WesBanco, Inc. | 14,264 | 423,783 | ||||||
Westamerica Bancorporation† | 47 | 2,289 | ||||||
18,129,090 | ||||||||
Industrials — 23.0% | ||||||||
Astec Industries, Inc. | 11,421 | 533,018 | ||||||
CLARCOR, Inc. | 14,647 | 846,450 | ||||||
Crane Co. | 13,977 | 752,801 | ||||||
Franklin Electric Co., Inc. | 13,215 | 425,127 | ||||||
Granite Construction, Inc. | 43,305 | 2,069,979 | ||||||
HNI Corp. | 975 | 38,191 | ||||||
Interface, Inc. | 32,825 | 608,576 | ||||||
KBR, Inc. | 95,792 | 1,482,860 | ||||||
McGrath RentCorp | 28,237 | 708,184 | ||||||
MSA Safety, Inc. | 24,019 | 1,161,319 | ||||||
Oshkosh Corp. | 22,382 | 914,752 | ||||||
Primoris Services Corp. | 24,068 | 584,852 | ||||||
Regal-Beloit Corp. | 20,317 | 1,281,800 | ||||||
Ryder System, Inc. | 3,047 | 197,385 | ||||||
Tetra Tech, Inc. | 13,172 | 392,789 | ||||||
11,998,083 | ||||||||
Materials — 11.0% | ||||||||
A Schulman, Inc. | 19,902 | 541,732 | ||||||
Axiall Corp. | 48,373 | 1,056,466 | ||||||
Cabot Corp. | 7,111 | 343,675 | ||||||
Compass Minerals International, Inc. | 15,759 | 1,116,683 | ||||||
Greif, Inc. - Class A | 22,812 | 747,093 | ||||||
Haynes International, Inc. | 15,565 | 568,122 | ||||||
Kronos Worldwide, Inc.† | 86,636 | 495,558 | ||||||
PolyOne Corp. | 29,920 | 905,080 | ||||||
5,774,409 | ||||||||
Energy — 10.0% | ||||||||
Green Plains Renewable Energy, Inc. | 40,129 | 640,459 | ||||||
Nabors Industries Ltd. | 126,299 | 1,161,951 | ||||||
Patterson-UTI Energy, Inc. | 88,628 | 1,561,625 | ||||||
Superior Energy Services, Inc. | 66,245 | 887,021 | ||||||
US Silica Holdings, Inc.† | 43,195 | 981,390 | ||||||
5,232,446 | ||||||||
Information Technology — 8.1% | ||||||||
ADTRAN, Inc. | 48,986 | 990,496 | ||||||
Cohu, Inc. | 41,576 | 493,923 | ||||||
Cypress Semiconductor Corp. | 91,125 | 789,142 | ||||||
Diebold, Inc. | 67,008 | 1,937,201 | ||||||
4,210,762 | ||||||||
Consumer Discretionary — 5.9% | ||||||||
Bloomin’ Brands, Inc. | 39,286 | 662,754 | ||||||
Chico’s FAS, Inc. | 62,771 | 832,971 | ||||||
Meredith Corp. | 33,425 | 1,587,688 | ||||||
3,083,413 | ||||||||
Consumer Staples — 1.9% | ||||||||
Andersons, Inc. (The) | 32,050 | 1,006,691 | ||||||
Total Common Stocks | $ | 49,434,894 | ||||||
Investment Funds — 8.1% | ||||||||
Dreyfus Cash Management, Institutional Shares, 0.30%∞Ω | 2,169,648 | 2,169,648 | ||||||
Invesco Government & Agency Portfolio, Institutional Class, 0.26%**∞Ω | 2,065,343 | 2,065,343 | ||||||
Total Investment Funds | $ | 4,234,991 | ||||||
Total Investment Securities — 102.7% | ||||||||
(Cost $56,236,527) | $ | 53,669,885 | ||||||
Liabilities in Excess of Other Assets — (2.7%) | (1,421,782 | ) | ||||||
Net Assets — 100.0% | $ | 52,248,103 |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $1,978,577. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviation:
REIT - Real Estate Investment Trust
24 |
Touchstone Small Cap Value Fund (Unaudited) (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common Stocks | $ | 49,434,894 | $ | — | $ | — | $ | 49,434,894 | ||||||||
Investment Funds | 4,234,991 | — | — | 4,234,991 | ||||||||||||
Total | $ | 53,669,885 | $ | — | $ | — | $ | 53,669,885 |
See accompanying Notes to Financial Statements.
25 |
Portfolio of Investments
Touchstone Total Return Bond Fund – March 31, 2016 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Corporate Bonds — 33.8% | ||||||||
Financials — 10.0% | ||||||||
$ | 1,885,000 | American Express Co., | ||||||
2.650%, 12/2/22 | $ | 1,879,083 | ||||||
1,216,000 | Delphi Financial Group, Inc., | |||||||
7.875%, 1/31/20 | 1,427,922 | |||||||
2,000,000 | Fishers Lane Associates LLC, 144a, | |||||||
3.666%, 8/5/30 | 2,116,184 | |||||||
1,550,000 | Ford Motor Credit Co. LLC, | |||||||
4.375%, 8/6/23 | 1,649,301 | |||||||
1,386,000 | GE Capital International Funding Co. | |||||||
(Ireland), 144a, 3.373%, 11/15/25 | 1,478,994 | |||||||
1,501,000 | National Rural Utilities Cooperative | |||||||
Finance Corp., 3.400%, 11/15/23 | 1,564,263 | |||||||
1,800,000 | Private Export Funding Corp., | |||||||
2.450%, 7/15/24 | 1,827,767 | |||||||
1,500,000 | Provident Cos., Inc., 7.000%, 7/15/18 | 1,651,500 | ||||||
1,538,325 | Tagua Leasing LLC, 1.581%, 11/16/24 | 1,520,942 | ||||||
1,398,000 | Torchmark Corp., 3.800%, 9/15/22 | 1,426,932 | ||||||
2,000,000 | USB Capital IX, 3.500%, 10/29/49(A)(B) | 1,480,000 | ||||||
2,000,000 | Wachovia Capital Trust III, | |||||||
5.570%, 3/29/49(A)(B) | 1,975,000 | |||||||
19,997,888 | ||||||||
Industrials — 9.7% | ||||||||
1,491,578 | American Airlines 2011-1 Class B Pass | |||||||
Through Trust, 144a, | ||||||||
7.000%, 1/31/18 | 1,551,241 | |||||||
15,606 | Burlington Northern and Santa Fe | |||||||
Railway Co. 1998-C Pass Through | ||||||||
Trust, 6.230%, 7/2/18 | 16,425 | |||||||
78,314 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2004-1 Pass Through | ||||||||
Trust, 4.575%, 1/15/21 | 82,775 | |||||||
337,614 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2005-3 Pass Through | ||||||||
Trust, 4.830%, 1/15/23 | 361,751 | |||||||
1,175,893 | Burlington Northern and Santa Fe | |||||||
Railway Co. 2005-4 Pass Through | ||||||||
Trust, 4.967%, 4/1/23 | 1,262,870 | |||||||
1,172,247 | Continental Airlines 2000-2 Class A-1 | |||||||
Pass Through Trust, 7.707%, 4/2/21 | 1,276,343 | |||||||
595,461 | CSX Transportation, Inc., | |||||||
6.251%, 1/15/23 | 690,591 | |||||||
1,677,724 | Delta Air Lines 2010-2 Class A Pass | |||||||
Through Trust, 4.950%, 5/23/19 | 1,765,804 | |||||||
879,137 | Federal Express Corp. 1998 Pass | |||||||
Through Trust, 6.845%, 1/15/19 | 936,281 | |||||||
555,900 | Federal Express Corp. 1999 Pass | |||||||
Through Trust, 7.650%, 1/15/22 | 647,624 | |||||||
1,500,000 | GATX Corp., 3.250%, 3/30/25 | 1,391,848 | ||||||
524,000 | General Electric Co. MTN, | |||||||
3.450%, 5/15/24 | 564,738 | |||||||
600,000 | Kansas City Southern, 144a, | |||||||
3.000%, 5/15/23 | 582,494 | |||||||
1,941,000 | Norfolk Southern Corp., | |||||||
2.903%, 2/15/23 | 1,950,548 | |||||||
1,402,000 | Republic Services, Inc., | |||||||
5.250%, 11/15/21 | 1,596,556 | |||||||
1,315,479 | Southwest Airlines Co. 2007-1 Pass | |||||||
Through Trust, 6.150%, 8/1/22 | 1,456,893 | |||||||
48,493 | Union Pacific Railroad Co. 2001 Pass | |||||||
Through Trust, 6.630%, 1/27/22 | 55,591 | |||||||
1,055,568 | Union Pacific Railroad Co. 2003 Pass | |||||||
Through Trust, 4.698%, 1/2/24 | 1,133,662 | |||||||
602,995 | Union Pacific Railroad Co. 2006 Pass | |||||||
Through Trust, 5.866%, 7/2/30 | 702,325 | |||||||
1,372,000 | United Rentals North America, Inc., | |||||||
5.750%, 11/15/24 | 1,372,000 | |||||||
19,398,360 | ||||||||
Utilities — 5.5% | ||||||||
1,456,495 | Bruce Mansfield Unit 1, 2007 Pass | |||||||
Through Trust, 6.850%, 6/1/34 | 1,375,166 | |||||||
550,000 | California Water Service Co., | |||||||
5.500%, 12/1/40 | 666,125 | |||||||
1,311,000 | Commonwealth Edison Co., | |||||||
5.900%, 3/15/36 | 1,640,731 | |||||||
1,780,000 | Dominion Resources, Inc., | |||||||
2.929%, 9/30/66(A) | 1,246,564 | |||||||
1,700,000 | Entergy Louisiana LLC, | |||||||
4.440%, 1/15/26 | 1,877,225 | |||||||
832,176 | Kiowa Power Partners LLC, 144a, | |||||||
5.737%, 3/30/21 | 877,773 | |||||||
2,000,000 | NextEra Energy Capital Holdings, Inc., | |||||||
6.350%, 10/1/66(A) | 1,475,000 | |||||||
1,800,000 | South Carolina Electric & Gas Co., | |||||||
4.600%, 6/15/43 | 1,897,729 | |||||||
11,056,313 | ||||||||
Energy — 4.0% | ||||||||
1,000,000 | Apache Corp., 3.250%, 4/15/22 | 962,145 | ||||||
1,253,000 | Chesapeake Energy Corp., | |||||||
6.625%, 8/15/20 | 488,670 | |||||||
1,530,000 | Newfield Exploration Co., | |||||||
5.750%, 1/30/22 | 1,491,276 | |||||||
1,551,000 | Petrobras Global Finance BV (Cayman | |||||||
Islands), 3.500%, 2/6/17 | 1,526,494 | |||||||
1,516,000 | Petroleos Mexicanos (Mexico), | |||||||
2.290%, 2/15/24 | 1,545,795 | |||||||
1,500,000 | Petroleos Mexicanos (Mexico), | |||||||
4.875%, 1/24/22 | 1,488,750 | |||||||
400,000 | Spectra Energy Partners LP, | |||||||
3.500%, 3/15/25 | 386,344 | |||||||
7,889,474 | ||||||||
Consumer Staples — 1.7% | ||||||||
1,535,378 | CVS Pass-Through Trust, | |||||||
6.036%, 12/10/28 | 1,719,638 | |||||||
1,500,000 | Kroger Co. (The), 3.850%, 8/1/23 | 1,612,842 | ||||||
3,332,480 |
26 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal Amount | Market Value | |||||||
Corporate Bonds — 33.8% (Continued) | ||||||||
Consumer Discretionary —1.3% | ||||||||
$ | 990,000 | PulteGroup, Inc., 7.875%, 6/15/32 | $ | 1,121,175 | ||||
1,300,000 | Royal Caribbean Cruises Ltd. (Liberia), | |||||||
5.250%, 11/15/22† | 1,371,500 | |||||||
2,492,675 | ||||||||
Telecommunication Services — 0.9% | ||||||||
1,500,000 | Verizon Communications, Inc., | |||||||
6.000%, 4/1/41 | 1,793,182 | |||||||
Health Care — 0.7% | ||||||||
1,400,000 | HCA, Inc., 4.250%, 10/15/19 | 1,442,875 | ||||||
Total Corporate Bonds | $ | 67,403,247 | ||||||
U.S. Government Agency Obligations — 23.1% | ||||||||
35,777 | Astro Offshore Corp., | |||||||
6.000%, 12/20/19 | 37,681 | |||||||
1,187,000 | Canal Barge Co., Inc., 4.500%, 11/12/34 | 1,315,080 | ||||||
523,410 | EJM Airport LLC, 6.271%, 5/15/20 | 582,217 | ||||||
1,800,000 | Hashemite Kingdom of Jordan | |||||||
Government AID Bond, | ||||||||
3.000%, 6/30/25 | 1,915,679 | |||||||
279,000 | Matson Navigation Co., Inc., | |||||||
5.337%, 9/4/28 | 319,556 | |||||||
9,644 | Small Business Administration | |||||||
Participation Certificates, | ||||||||
6.150%, 2/1/18 | 10,030 | |||||||
23,841 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2001-20A, Class 1, 6.290%, 1/1/21 | 25,719 | |||||||
62,979 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2001-20K, Class 1, 5.340%, 11/1/21 | 67,387 | |||||||
136,794 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20H, Class 1, 5.310%, 8/1/22 | 147,306 | |||||||
159,120 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20B, Class 1, 4.840%, 2/1/23 | 170,857 | |||||||
55,682 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20D, Class 1, 4.760%, 4/1/23 | 59,721 | |||||||
42,728 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20D, Class 1, 4.770%, 4/1/24 | 45,758 | |||||||
366,289 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2004-20K, Class 1, 4.880%, 11/1/24 | 396,138 | |||||||
207,528 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20B, Class 1, 4.625%, 2/1/25 | 222,155 | |||||||
169,164 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2005-20H, Class 1, 5.110%, 8/1/25 | 184,387 | |||||||
1,192,835 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20B, Class 1, 5.350%, 2/1/26 | 1,312,414 | |||||||
339,171 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20H, Class 1, 5.700%, 8/1/26 | 380,718 | |||||||
909,415 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20K, Class 1, 5.360%, 11/1/26 | 1,001,426 | |||||||
968,117 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2006-20L, Class 1, 5.120%, 12/1/26 | 1,060,936 | |||||||
755,693 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20A, Class 1, 5.320%, 1/1/27 | 836,160 | |||||||
1,024,025 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20E, Class 1, 5.310%, 5/1/27 | 1,141,126 | |||||||
421,802 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20F, Class 1, 5.710%, 6/1/27 | 476,946 | |||||||
1,019,321 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2007-20L, Class 1, 5.290%, 12/1/27 | 1,136,302 | |||||||
649,645 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-20A, Class 1, 5.170%, 1/1/28 | 726,226 | |||||||
714,531 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2008-20K, Class 1, 6.770%, 11/1/28 | 827,910 | |||||||
1,456,750 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20B, Class 1, 4.760%, 2/1/29 | 1,605,275 | |||||||
1,668,171 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20C, Class 1, 4.660%, 3/1/29 | 1,832,123 | |||||||
235,837 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20D, Class 1, 4.310%, 4/1/29 | 255,934 | |||||||
1,145,098 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20E, Class 1, 4.430%, 5/1/29 | 1,248,167 | |||||||
857,490 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20F, Class 1, 4.950%, 6/1/29 | 950,690 | |||||||
1,146,804 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2009-20J, Class 1, 3.920%, 10/1/29 | 1,234,485 | |||||||
1,279,504 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2010-20F, Class 1, 3.880%, 6/1/30 | 1,385,657 | |||||||
1,878,937 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2010-20I, Class 1, 3.210%, 9/1/30 | 1,982,595 |
27 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Agency Obligations — 23.1% (Continued) | ||||||||
$ | 964,259 | Small Business Administration | ||||||
Participation Certificates, Ser | ||||||||
2012-10C, Class 1, 1.240%, 5/1/22 | $ | 957,077 | ||||||
2,338,821 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2013-20C, Class 1, 2.220%, 3/1/33 | 2,363,010 | |||||||
2,257,409 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2013-20E, Class 1, 2.070%, 5/1/33 | 2,251,464 | |||||||
2,818,718 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2013-20G, Class 1, 3.150%, 7/1/33 | 2,952,565 | |||||||
2,874,064 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2014-20H, Class 1, 2.880%, 8/1/34 | 2,966,281 | |||||||
2,338,561 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2014-20K, Class 1, 2.800%, 11/1/34 | 2,409,469 | |||||||
2,226,786 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2015-20E, Class 1, 2.770%, 5/1/35 | 2,270,202 | |||||||
103,088 | Sterling Equipment, 6.125%, 9/28/19 | 113,210 | ||||||
1,650,000 | Tennessee Valley Authority, | |||||||
4.650%, 6/15/35 | 1,948,612 | |||||||
1,028,000 | Totem Ocean Trailer Express, Inc., | |||||||
6.365%, 4/15/28 | 1,201,354 | |||||||
1,473,000 | Vessel Management Services, Inc., | |||||||
5.125%, 4/16/35 | 1,739,072 | |||||||
Total U.S. Government Agency Obligations | $ | 46,067,077 | ||||||
U.S. Government Mortgage-Backed Obligations —17.5% | ||||||||
275,596 | FHLMC, Pool #A89148, | |||||||
4.000%, 10/1/39 | 294,938 | |||||||
216,439 | FNMA, Pool #465711, 4.680%, 8/1/28 | 249,660 | ||||||
1,572,990 | FNMA, Pool #469616, 3.500%, 11/1/21 | 1,721,014 | ||||||
1,693,612 | FNMA, Pool #469667, 3.540%, 12/1/21 | 1,822,713 | ||||||
112,492 | FNMA, Pool #874210, 5.260%, 1/1/25 | 128,598 | ||||||
191,590 | FNMA, Pool #888829, 5.832%, 6/1/37 | 239,443 | ||||||
189,199 | FNMA, Pool #958736, 4.940%, 5/1/19 | 207,476 | ||||||
189,759 | FNMA, Pool #AB1152, 4.000%, 6/1/25 | 202,510 | ||||||
345,307 | FNMA, Pool #AD0101, 4.890%, 7/1/19 | 380,246 | ||||||
341,023 | FNMA, Pool #AD0166, 4.837%, 8/1/19 | 375,785 | ||||||
988,828 | FNMA, Pool #AD0342, 4.655%, 10/1/19 | 1,084,986 | ||||||
946,465 | FNMA, Pool #AD0786, 4.501%, 1/1/20 | 1,039,117 | ||||||
465,329 | FNMA, Pool #AD0910, 4.632%, 4/1/20 | 509,954 | ||||||
57,198 | FNMA, Pool #AD1608, 4.000%, 2/1/25 | 60,741 | ||||||
387,796 | FNMA, Pool #AE0209, 4.380%, 6/1/20 | 424,072 | ||||||
1,195,552 | FNMA, Pool #AE0446, 4.014%, 9/1/20 | 1,298,338 | ||||||
596,321 | FNMA, Pool #AE2771, 3.500%, 8/1/26 | 632,766 | ||||||
379,564 | FNMA, Pool #AE8886, 3.500%, 12/1/25 | 401,509 | ||||||
257,442 | FNMA, Pool #AH1519, 3.500%, 12/1/25 | 272,362 | ||||||
2,651,558 | FNMA, Pool #AH8854, 4.500%, 4/1/41 | 2,894,254 | ||||||
438,063 | FNMA, Pool #AI1856, 4.500%, 5/1/41 | 480,978 | ||||||
1,816,915 | FNMA, Pool #AM0157, 2.680%, 2/1/22 | 1,892,226 | ||||||
1,900,631 | FNMA, Pool #AM0566, 1.940%, 9/1/19 | 1,924,075 | ||||||
2,458,829 | FNMA, Pool #AP7488, 3.500%, 9/1/42 | 2,583,968 | ||||||
1,238,461 | FNMA, Pool #AT0924, 2.000%, 3/1/28 | 1,235,387 | ||||||
3,623,076 | FNMA, Pool #AU1628, 3.000%, 7/1/43 | 3,724,261 | ||||||
2,932,378 | FNMA, Pool #AX7699, 3.500%, 2/1/45 | 3,075,963 | ||||||
1,220,233 | GNMA, Pool #5276, 3.000%, 1/20/27 | 1,281,943 | ||||||
1,691,126 | GNMA, Pool #710077, 4.700%, 5/20/61 | 1,769,404 | ||||||
334,674 | GNMA, Pool #751408, 4.826%, 6/20/61 | 366,881 | ||||||
659,819 | GNMA, Pool #751409, 4.626%, 7/20/61 | 693,574 | ||||||
377,805 | GNMA, Pool #752631, 4.500%, 10/20/40 | 409,509 | ||||||
649,820 | GNMA, Pool #756686, 4.697%, 9/20/61 | 686,450 | ||||||
492,424 | GNMA, Pool #757327, 4.295%, 7/20/61 | 514,154 | ||||||
Total U.S. Government | ||||||||
Mortgage-Backed Obligations | $ | 34,879,255 | ||||||
Municipal Bonds — 7.1% | ||||||||
California — 2.6% | ||||||||
1,225,000 | CA State City of San Francisco Public | |||||||
Utilities Commission Water | ||||||||
Revenue, Build America Bonds, | ||||||||
6.950%, 11/1/50 | 1,748,479 | |||||||
1,510,000 | CA State East Bay Municipal Utility | |||||||
District Water System Revenue, | ||||||||
Build America Bonds Sub, | ||||||||
5.874%, 6/1/40 | 1,971,169 | |||||||
1,550,278 | CA State HFA Residential Mortgage | |||||||
Rev, Ser A, 2.900%, 2/1/42 | 1,565,207 | |||||||
5,284,855 | ||||||||
Florida — 0.6% | ||||||||
1,188,979 | FL State HFC Rev, Homeownership | |||||||
Mortgage Special Project, | ||||||||
2.800%, 7/1/41 | 1,204,638 | |||||||
Missouri — 0.6% | ||||||||
1,085,000 | MO State Housing Development | |||||||
Commission, Special | ||||||||
Homeownership Loan Program, Ser | ||||||||
C, 2.650%, 11/1/40 | 1,100,950 | |||||||
Texas —1.7% | ||||||||
1,774,000 | TX State Dallas Area Rapid Transit, | |||||||
Build America Bonds, | ||||||||
5.999%, 12/1/44 | 2,428,695 | |||||||
985,000 | TX State Texas Dept of Housing & | |||||||
Community Affairs, Ser A, | ||||||||
2.800%, 3/1/36 | 998,317 | |||||||
3,427,012 | ||||||||
Virginia — 0.6% | ||||||||
1,086,710 | VA State Housing Development | |||||||
Authority, Pass Thru Ser B, | ||||||||
2.750%, 4/25/42 | 1,114,193 |
28 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Municipal Bonds — 7.1% (Continued) | ||||||||
Washington — 1.0% | ||||||||
$ | 1,515,000 | WA State ofWashington, Build | ||||||
America Bonds Ser D, UTGO, | ||||||||
5.481%, 8/1/39 | $ | 1,928,974 | ||||||
Total Municipal Bonds | $ | 14,060,622 | ||||||
Agency Collateralized Mortgage Obligations — 5.8% | ||||||||
1,020,000 | FREMF Mortgage Trust, Ser 2011-K702, | |||||||
Class B, 144a, 4.766%, 4/25/44(A) | 1,059,737 | |||||||
1,000,000 | FREMF Mortgage Trust, Ser 2012-K19, | |||||||
Class B, 144a, 4.035%, 5/25/45(A) | 1,044,521 | |||||||
925,000 | FREMF Mortgage Trust, Ser 2012-K706, | |||||||
Class B, 144a, 4.028%, 11/25/44(A) | 949,743 | |||||||
1,035,000 | FREMF Mortgage Trust, Ser 2012-K710, | |||||||
Class B, 144a, 3.821%, 6/25/47(A) | 1,054,712 | |||||||
657,792 | GNMA, Ser 2011-147, Class A, | |||||||
2.174%, 7/16/38 | 659,829 | |||||||
278,315 | GNMA, Ser 2011-31, Class A, | |||||||
2.210%, 12/16/35 | 278,588 | |||||||
77,123 | GNMA, Ser 2012-22, Class AB, | |||||||
1.661%, 3/16/33 | 77,141 | |||||||
2,801,881 | GNMA, Ser 2012-53, Class AC, | |||||||
2.381%, 12/16/43 | 2,830,084 | |||||||
1,535,815 | GNMA, Ser 2013-40, Class AC, | |||||||
1.584%, 1/16/46 | 1,513,137 | |||||||
2,009,000 | GNMA, Ser 2015-73, Class B, | |||||||
2.700%, 10/16/55(A) | 1,992,317 | |||||||
Total Agency Collateralized Mortgage Obligations | $ | 11,459,809 | ||||||
Commercial Mortgage-Backed Securities — 3.7% | ||||||||
1,675,000 | Citigroup Commercial Mortgage Trust, | |||||||
Ser 2007-C6, Class A4, | ||||||||
5.705%, 12/10/49(A) | 1,726,708 | |||||||
505,000 | Citigroup/Deutsche Bank Commercial | |||||||
Mortgage Trust, Ser 2006-CD3, | ||||||||
Class AJ, 5.688%, 10/15/48 | 302,686 | |||||||
1,388,790 | Citigroup/Deutsche Bank Commercial | |||||||
Mortgage Trust, Ser 2007-CD4, | ||||||||
Class A4, 5.322%, 12/11/49 | 1,415,876 | |||||||
2,070,428 | GS Mortgage Securities Corp. II, Ser | |||||||
2007-GG10, Class A4, | ||||||||
5.794%, 8/10/45(A) | 2,132,569 | |||||||
1,835,000 | ML-CFC Commercial Mortgage Trust, | |||||||
Ser 2006-3, Class AM, | ||||||||
5.456%, 7/12/46(A) | 1,851,202 | |||||||
Total Commercial Mortgage-Backed Securities | $ | 7,429,041 | ||||||
U.S. Treasury Obligations — 3.3% | ||||||||
3,146,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 8/15/35# | 1,935,957 | |||||||
3,695,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 5/15/40# | 1,963,009 | |||||||
5,650,000 | U.S. Treasury Strip, Principal, | |||||||
0.000%, 5/15/43# | 2,715,401 | |||||||
Total U.S. Treasury Obligations | $ | 6,614,367 | ||||||
Asset-Backed Securities — 2.2% | ||||||||
1,164,224 | 321 Henderson Receivables I LLC, Ser | |||||||
2012-1A, Class A, 144a, | ||||||||
4.210%, 2/16/65 | 1,219,211 | |||||||
1,127,587 | 321 Henderson Receivables I LLC, Ser | |||||||
2012-2A, Class A, 144a, | ||||||||
3.840%, 10/15/59 | 1,165,337 | |||||||
479,400 | FPL Recovery Funding LLC, Ser | |||||||
2007-A, Class A4, 5.256%, 8/1/21 | 515,413 | |||||||
1,325,000 | JCP&L Transition Funding LLC, Ser | |||||||
2006-A, Class A4, 5.610%, 6/5/23 | 1,520,357 | |||||||
Total Asset-Backed Securities | $ | 4,420,318 |
Shares | ||||||||
Investment Funds — 2.9% | ||||||||
5,648,555 | Dreyfus Cash Management, | |||||||
Institutional Shares, 0.30%∞Ω | 5,648,555 | |||||||
197,943 | Invesco Government & Agency | |||||||
Portfolio, Institutional Class, | ||||||||
0.26%**∞Ω | 197,943 | |||||||
Total Investment Funds | $ | 5,846,498 | ||||||
Total Investment Securities — 99.4% | ||||||||
(Cost $196,537,726) | $ | 198,180,234 | ||||||
Other Assets in Excess of | ||||||||
Liabilities — 0.6% | 1,268,302 | |||||||
Net Assets —100.0% | $ | 199,448,536 |
# | Strip Security - Separate trading of Registered Interest and Principal. Holders of a principal strip security are entitled to the portion of the payment representing principal only. |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2016. |
(B) | Perpetual Bond - A Bond with no definite maturity date. |
** | Represents collateral for securities loaned. |
† | All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2016 was $189,415. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
29 |
Touchstone Total Return Bond Fund (Unaudited) (Continued)
Portfolio Abbreviations:
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FREMF - Finnish Real Estate Management Federation
GNMA - Government National Mortgage Association
HFA - Housing Finance Authority/Agency
HFC - Housing Finance Corporation
LLC - Limited Liability Company
LP - Limited Partnership
MTN - Medium Term Note
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, 2016, these securities were valued at $13,099,947 or 6.6% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Corporate Bonds | $ | — | $ | 67,403,247 | $ | — | $ | 67,403,247 | ||||||||
U.S. Government Agency Obligations | — | 46,067,077 | — | 46,067,077 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 34,879,255 | — | 34,879,255 | ||||||||||||
Municipal Bonds | — | 14,060,622 | — | 14,060,622 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 11,459,809 | — | 11,459,809 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 7,429,041 | — | 7,429,041 | ||||||||||||
U.S. Treasury Obligations | — | 6,614,367 | — | 6,614,367 | ||||||||||||
Asset-Backed Securities | — | 4,420,318 | — | 4,420,318 | ||||||||||||
Investment Funds | 5,846,498 | — | — | 5,846,498 | ||||||||||||
Total | $ | 5,846,498 | $ | 192,333,736 | $ | — | $ | 198,180,234 |
See accompanying Notes to Financial Statements.
30 |
Portfolio of Investments
Touchstone Ultra Short Duration Fixed Income Fund – March 31, 2016 (Unaudited)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 37.3% | ||||||||
$ | 4,000,000 | ABCLO Ltd., Ser 2007-1A, Class B, 144a, | ||||||
1.372%, 4/15/21(A) | $ | 3,990,980 | ||||||
79,234 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2014-3, Class | ||||||||
A, 144a, 0.990%, 8/10/18 | 79,227 | |||||||
1,081,451 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2014-4, Class | ||||||||
A, 144a, 1.330%, 7/10/18 | 1,080,222 | |||||||
4,121,699 | American Credit Acceptance | |||||||
Receivables Trust, Ser 2015-3, Class | ||||||||
A, 144a, 1.950%, 9/12/19 | 4,112,854 | |||||||
2,370,758 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2011-5, Class D, | ||||||||
5.050%, 12/8/17 | 2,379,228 | |||||||
1,500,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2011-5, Class E, | ||||||||
6.760%, 3/8/19 | 1,505,336 | |||||||
5,015,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-1, Class D, | ||||||||
4.720%, 3/8/18 | 5,043,067 | |||||||
1,920,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-1, Class E, 144a, | ||||||||
5.940%, 7/8/19 | 1,936,634 | |||||||
4,205,000 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2012-2, Class D, | ||||||||
3.380%, 4/9/18 | 4,234,966 | |||||||
1,505,523 | AmeriCredit Automobile Receivables | |||||||
Trust, Ser 2013-2, Class B, | ||||||||
1.190%, 5/8/18 | 1,505,021 | |||||||
2,000,000 | Apidos Cinco CDO Ltd., Ser 2007-CA, | |||||||
Class A2B, 144a, 0.938%, 5/14/20(A) | 1,975,288 | |||||||
5,370,732 | Ascentium Equipment Receivables | |||||||
LLC, Ser 2015-1A, Class A2, 144a, | ||||||||
1.150%, 7/10/17 | 5,370,326 | |||||||
3,000,207 | Ascentium Equipment Receivables | |||||||
LLC, Ser 2015-2A, Class A1, 144a, | ||||||||
1.000%, 11/10/16 | 2,995,928 | |||||||
208,254 | AXIS Equipment Finance Receivables | |||||||
II LLC, Ser 2013-1A, Class A, 144a, | ||||||||
1.750%, 3/20/17 | 208,239 | |||||||
1,515,678 | Bayview Financial Acquisition Trust, | |||||||
Ser 2004-C, Class M1, | ||||||||
1.083%, 5/28/44(A) | 1,514,194 | |||||||
2,105,617 | Bayview Financial Acquisition Trust, | |||||||
Ser 2004-D, Class M1, | ||||||||
1.063%, 8/28/44(A) | 2,102,969 | |||||||
1,869,875 | Bear Stearns Asset Backed Securities I | |||||||
Trust, Ser 2004-BO1, Class M2, | ||||||||
1.183%, 10/25/34(A) | 1,865,110 | |||||||
4,987,447 | BlueVirgo Trust, Ser 2015-1A, Class | |||||||
NOTE, 144a, 3.000%, 12/15/22 | 4,974,978 | |||||||
253,016 | California Republic Auto Receivables | |||||||
Trust, Ser 2014-3, Class A3, | ||||||||
1.090%, 11/15/18 | 252,772 | |||||||
5,000,000 | Capital Auto Receivables Asset Trust, | |||||||
Ser 2013-4, Class A4, | ||||||||
1.470%, 7/20/18 | 5,008,322 | |||||||
1,568,036 | CarFinance Capital Auto Trust, Ser | |||||||
2015-1A, Class A, 144a, | ||||||||
1.750%, 6/15/21 | 1,560,493 | |||||||
3,059,646 | Carnow Auto Receivables Trust, Ser | |||||||
2015-1A, Class A, 144a, | ||||||||
1.690%, 1/15/20 | 3,051,739 | |||||||
1,451,207 | Carrington Mortgage Loan Trust, Ser | |||||||
2005-OPT2, Class M2, | ||||||||
1.108%, 5/25/35(A) | 1,445,111 | |||||||
3,895,238 | Cazenovia Creek Funding I LLC, Ser | |||||||
2015-1A, Class A, 144a, | ||||||||
2.000%, 12/10/23 | 3,852,634 | |||||||
1,220,414 | CCG Receivables Trust 2014-1, Ser | |||||||
2014-1, Class A2, 144a, | ||||||||
1.060%, 11/15/21 | 1,217,374 | |||||||
810,982 | CFCLLC, Ser 2014-1A, Class A, 144a, | |||||||
1.460%, 12/17/18 | 810,248 | |||||||
319,353 | Cifc Funding 2007-II Ltd., Ser 2007-2A, | |||||||
Class A1J, 144a, 0.962%, 4/15/21(A) | 313,360 | |||||||
3,410,000 | CNH Equipment Trust, Ser 2014-C, | |||||||
Class A3, 1.050%, 11/15/19 | 3,403,876 | |||||||
36,066 | College & University Facility Loan | |||||||
Trust, Ser 2 Class D, 4.000%, 6/1/18 | 36,192 | |||||||
4,196,362 | Countrywide Asset-Backed | |||||||
Certificates, Ser 2004-12, Class MV3, | ||||||||
1.423%, 3/25/35(A) | 4,148,223 | |||||||
415,868 | Countrywide Asset-Backed | |||||||
Certificates, Ser 2005-BC4, Class M3, | ||||||||
1.183%, 8/25/35(A) | 415,285 | |||||||
2,545,931 | Credit Acceptance Auto Loan Trust, | |||||||
Ser 2013-2A, Class A, 144a, | ||||||||
1.500%, 4/15/21 | 2,544,380 | |||||||
2,338,737 | Credit-Based Asset Servicing and | |||||||
Securitization LLC, Ser 2006-SC1, | ||||||||
Class A, 144a, 0.703%, 5/25/36(A) | 2,273,486 | |||||||
2,300,000 | Dell Equipment Finance Trust, Ser | |||||||
2014-1, Class B, 144a, | ||||||||
1.360%, 6/22/20 | 2,295,305 | |||||||
4,374,927 | Dell Equipment Finance Trust, Ser | |||||||
2015-1, Class A2, 144a, | ||||||||
1.010%, 7/24/17 | 4,369,203 | |||||||
1,405,243 | Direct Capital Funding V LLC, Ser | |||||||
2013-2, Class A2, 144a, | ||||||||
1.730%, 8/20/18 | 1,404,840 | |||||||
2,205,366 | DT Auto Owner Trust, Ser 2015-2A, | |||||||
Class A, 144a, 1.240%, 9/17/18 | 2,203,164 | |||||||
1,408,999 | Elara HGV Timeshare Issuer LLC, Ser | |||||||
2014-A, Class A, 144a, | ||||||||
2.530%, 2/25/27 | 1,400,799 | |||||||
523,684 | Exeter Automobile Receivables Trust, | |||||||
Ser 2014-2A, Class A, 144a, | ||||||||
1.060%, 8/15/18 | 522,749 |
31 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Asset-Backed Securities — 37.3% (Continued) | ||||||||
$ | 2,770,343 | Exeter Automobile Receivables Trust, | ||||||
Ser 2015-1A, Class A, 144a, | ||||||||
1.600%, 6/17/19 | $ | 2,765,255 | ||||||
1,345,000 | First Investors Auto Owner Trust, Ser | |||||||
2013-1A, Class B, 144a, | ||||||||
1.810%, 10/15/18 | 1,344,608 | |||||||
3,700,000 | Flagship Credit Auto Trust, Ser 2013-1, | |||||||
Class B, 144a, 2.760%, 9/17/18 | 3,701,429 | |||||||
1,191,109 | FNA 2014-1 Trust, Ser 2014-1A, Class | |||||||
A, 144a, 1.296%, 12/10/22 | 1,179,570 | |||||||
3,801,006 | FNA 2015-1 Trust, Ser 2015-1, Class A, | |||||||
144a, 3.240%, 12/10/23 | 3,788,881 | |||||||
142,031 | FNMA REMIC Trust, Ser 2001-W4, Class | |||||||
AF5, 6.114%, 2/25/32(B) | 170,688 | |||||||
1,885,000 | Ford Credit Auto Owner Trust, Ser | |||||||
2012-A, Class D, 2.940%, 7/15/18 | 1,887,423 | |||||||
790,000 | Ford Credit Auto Owner Trust, Ser | |||||||
2012-B, Class D, 2.930%, 10/15/18 | 800,526 | |||||||
4,062,946 | GE Equipment Small Ticket LLC Series, | |||||||
Ser 2014-1A, Class A3, 144a, | ||||||||
0.950%, 9/25/17 | 4,059,469 | |||||||
5,099,336 | GreatAmerica Leasing Receivables | |||||||
Funding LLC Series, Ser 2015-1, | ||||||||
Class A2, 144a, 1.120%, 6/20/17 | 5,094,253 | |||||||
1,945,196 | GreatAmerica Leasing Receivables | |||||||
Funding LLC Series, Ser 2016-1, | ||||||||
Class A1, 144a, 0.780%, 2/21/17 | 1,944,362 | |||||||
3,425,000 | GreatAmerica Leasing Receivables | |||||||
Funding LLC Series, Ser 2016-1, | ||||||||
Class A2, 144a, 1.570%, 5/21/18 | 3,420,530 | |||||||
470,634 | Gulf Stream - Sextant CLO, Ser | |||||||
2007-1X, Class A1A Ltd. Reg S | ||||||||
Global Senior Notes, | ||||||||
0.751%, 6/17/21 | 468,734 | |||||||
5,837,000 | Hyundai Auto Receivables Trust, Ser | |||||||
2012-A, Class D, 2.610%, 5/15/18 | 5,840,637 | |||||||
4,700,000 | Jasper CLO Ltd., Ser 2005-1A, Class C, | |||||||
144a, 1.516%, 8/1/17(A) | 4,667,603 | |||||||
7,700,808 | LEAF Receivables Funding 9 LLC, Ser | |||||||
2013-1, Class A4, 144a, | ||||||||
1.980%, 9/15/21 | 7,693,038 | |||||||
862,078 | MMAF Equipment Finance LLC, Ser | |||||||
2012-AA, Class A4, 144a, | ||||||||
1.350%, 10/10/18 | 861,550 | |||||||
298,204 | Navitas Equipment Receivables LLC, | |||||||
Ser 2013-1, Class A, 144a, | ||||||||
1.950%, 11/15/16 | 298,093 | |||||||
50,000 | New Mexico Educational Assistance | |||||||
Foundation, Ser 2010, Class A2, | ||||||||
1.285%, 12/1/28(A) | 49,998 | |||||||
3,378,379 | Orange LakeTimeshare Trust, Ser | |||||||
2012-AA, Class A, 144a, | ||||||||
3.450%, 3/10/27 | 3,414,842 | |||||||
3,945,000 | Prestige Auto Receivables Trust, Ser | |||||||
2012-1A, Class C, 144a, | ||||||||
3.250%, 7/15/19 | 3,946,559 | |||||||
286,333 | RAMP Trust, Ser 2003-RZ3, Class A6, | |||||||
3.900%, 3/25/33(B) | 291,331 | |||||||
1,752,085 | Rockwall CDO Ltd., Ser 2006-1A, Class | |||||||
A1LB, 144a, 1.116%, 8/1/21(A) | 1,740,086 | |||||||
1,040,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2011-4, Class E, | ||||||||
7.200%, 11/15/18 | 1,046,857 | |||||||
5,005,252 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-1, Class D, | ||||||||
4.560%, 11/15/17 | 5,034,650 | |||||||
1,105,201 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-3, Class C, | ||||||||
3.010%, 4/16/18 | 1,106,748 | |||||||
1,880,047 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-4, Class C, | ||||||||
2.940%, 12/15/17 | 1,884,597 | |||||||
2,494,145 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-5, Class C, | ||||||||
2.700%, 8/15/18 | 2,503,307 | |||||||
920,790 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2012-AA, Class C, 144a, | ||||||||
1.780%, 11/15/18 | 922,152 | |||||||
5,686,369 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2013-1, Class C, | ||||||||
1.760%, 1/15/19 | 5,695,693 | |||||||
6,230,000 | Santander Drive Auto Receivables | |||||||
Trust, Ser 2013-2, Class C, | ||||||||
1.950%, 3/15/19 | 6,247,200 | |||||||
1,499,096 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2011-2A, Class A, 144a, | ||||||||
3.260%, 5/20/28 | 1,499,939 | |||||||
1,547,368 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2011-3A, Class A, 144a, | ||||||||
3.370%, 7/20/28 | 1,565,915 | |||||||
830,974 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2012-1A, Class A, 144a, | ||||||||
2.840%, 11/20/28 | 834,202 | |||||||
3,823,212 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2012-3A, Class A, 144a, | ||||||||
1.870%, 8/20/29 | 3,810,200 | |||||||
1,379,775 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2013-1A, Class A, 144a, | ||||||||
1.590%, 11/20/29 | 1,359,216 | |||||||
2,965,013 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2014-3A, Class A, 144a, | ||||||||
2.300%, 10/20/31 | 2,957,323 | |||||||
3,484,376 | Sierra Timeshare Receivables Funding | |||||||
LLC, Ser 2015-2A, Class A, 144a, | ||||||||
2.430%, 6/20/32 | 3,444,141 |
32 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal Amount | Market Value | |||||||
Asset-Backed Securities — 37.3% (Continued) | ||||||||
$ | 5,320,123 | SpringCastle America Funding LLC, | ||||||
Ser 2014-AA, Class A, 144a, | ||||||||
2.700%, 5/25/23 | $ | 5,298,209 | ||||||
3,275,000 | Tidewater Auto Receivables Trust, Ser | |||||||
2016-AA, Class A2, 144a, | ||||||||
2.300%, 9/15/19 | 3,274,739 | |||||||
797,992 | United Auto Credit Securitization | |||||||
Trust, Ser 2016-1, Class A, 144a, | ||||||||
2.000%, 10/15/17 | 797,435 | |||||||
2,757,366 | Welk Resorts LLC, Ser 2013-AA, Class | |||||||
A, 144a, 3.100%, 3/15/29 | 2,766,388 | |||||||
3,261,532 | Westgate Resorts, Ser 2015-1A, Class | |||||||
A, 144a, 2.750%, 5/20/27 | 3,237,383 | |||||||
529,402 | Westgate Resorts LLC, Ser 2012-3A, | |||||||
Class A, 144a, 2.500%, 3/20/25 | 528,763 | |||||||
965,877 | Westgate Resorts LLC, Ser 2012-3A, | |||||||
Class B, 144a, 4.500%, 3/20/25 | 964,005 | |||||||
2,447,895 | Westgate Resorts LLC, Ser 2013-1A, | |||||||
Class A, 144a, 2.250%, 8/20/25 | 2,448,092 | |||||||
2,961,741 | Westlake Automobile Receivables | |||||||
Trust, Ser 2015-1A, Class A2, 144a, | ||||||||
1.170%, 3/15/18 | 2,958,441 | |||||||
3,801,133 | Westlake Automobile Receivables | |||||||
Trust, Ser 2015-2A, Class A2A, 144a, | ||||||||
1.280%, 7/16/18 | 3,795,729 | |||||||
256,021 | Westlake Automobile Receivables | |||||||
Trust, Ser 2015-3A, Class A1, 144a, | ||||||||
0.640%, 10/17/16 | 256,021 | |||||||
5,285,000 | Westlake Automobile Receivables | |||||||
Trust, Ser 2016-1A, Class A2B, 144a, | ||||||||
1.486%, 1/15/19(A) | 5,288,303 | |||||||
Total Asset-Backed Securities | $ | 220,359,235 | ||||||
Corporate Bonds — 28.9% | ||||||||
Financials — 10.9% | ||||||||
2,300,000 | Air Lease Corp., 5.625%, 4/1/17 | 2,363,066 | ||||||
968,000 | Ameritech Capital Funding Corp., | |||||||
9.100%, 6/1/16 | 977,865 | |||||||
586,000 | Bank of America Corp., | |||||||
5.750%, 8/15/16 | 595,750 | |||||||
2,500,000 | Bank of America Corp., | |||||||
6.050%, 5/16/16 | 2,517,230 | |||||||
926,000 | Bear Stearns Cos. LLC (The), | |||||||
5.550%, 1/22/17 | 955,454 | |||||||
800,000 | Branch Banking & Trust Co., | |||||||
1.450%, 10/3/16 | 802,006 | |||||||
3,460,000 | Capital One Bank USA NA, | |||||||
1.150%, 11/21/16 | 3,460,301 | |||||||
3,700,000 | Citizens Bank, 2.500%, 3/14/19 | 3,732,245 | ||||||
4,800,000 | Credit Suisse/New York (Switzerland) | |||||||
MTN, 1.125%, 5/26/17(A) | 4,786,656 | |||||||
4,563,000 | DBS Bank Ltd.(Singapore), 144a, | |||||||
1.233%, 7/15/21(A) | 4,539,026 | |||||||
2,712,000 | Fifth Third Bancorp, 5.450%, 1/15/17 | 2,778,287 | ||||||
3,225,000 | Huntington National Bank (The), | |||||||
1.300%, 11/20/16 | 3,225,135 | |||||||
2,050,000 | Huntington National Bank (The), | |||||||
1.350%, 8/2/16 | 2,052,054 | |||||||
4,700,000 | Jackson National Life Global Funding, | |||||||
144a, 1.875%, 10/15/18 | 4,712,027 | |||||||
900,000 | Jackson National Life Global Funding, | |||||||
144a, 4.700%, 6/1/18 | 952,242 | |||||||
2,210,000 | Liberty Mutual Group, Inc., 144a, | |||||||
6.700%, 8/15/16 | 2,252,845 | |||||||
1,900,000 | Metropolitan Life Global Funding I, | |||||||
144a, 1.500%, 1/10/18 | 1,902,647 | |||||||
1,850,000 | Metropolitan Life Global Funding I, | |||||||
144a, 1.950%, 12/3/18 | 1,862,859 | |||||||
1,450,000 | Morgan Stanley MTN, 6.250%, 8/28/17 | 1,540,686 | ||||||
5,400,000 | PNC Bank NA, 1.150%, 11/1/16 | 5,406,934 | ||||||
4,026,000 | Sirius International Group Ltd., 144a, | |||||||
6.375%, 3/20/17 | 4,129,678 | |||||||
3,765,000 | Ventas Realty LP, 1.250%, 4/17/17 | 3,749,341 | ||||||
3,200,000 | Ventas Realty LP REIT, 1.550%, 9/26/16 | 3,203,469 | ||||||
1,650,000 | Weingarten Realty Investors REIT MTN, | |||||||
5.542%, 12/15/16 | 1,699,304 | |||||||
64,197,107 | ||||||||
Utilities — 3.1% | ||||||||
3,925,000 | Dayton Power & Light Co. (The), | |||||||
1.875%, 9/15/16 | 3,941,085 | |||||||
2,350,000 | Georgia Power Co., 1.950%, 12/1/18 | 2,374,283 | ||||||
715,000 | New York State Electric & Gas Corp., | |||||||
144a, 6.150%, 12/15/17 | 757,384 | |||||||
1,178,000 | Oklahoma Gas & Electric Co., | |||||||
6.500%, 7/15/17 | 1,249,831 | |||||||
800,000 | PPL UK Distribution Holdings Ltd. / | |||||||
Western Power Distribution Ltd., | ||||||||
144a, 7.250%, 12/15/17 | 842,138 | |||||||
1,384,000 | PPLWEM Ltd./Western Power | |||||||
Distribution Ltd., 144a, | ||||||||
3.900%, 5/1/16 | 1,386,324 | |||||||
451,000 | Southern Electric Generating Co., | |||||||
144a, 2.200%, 12/1/18 | 456,150 | |||||||
3,700,000 | Southern Star Central Gas Pipeline, | |||||||
Inc., 144a, 6.000%, 6/1/16 | 3,719,776 | |||||||
1,255,000 | West Penn Power Co., 144a, | |||||||
5.950%, 12/15/17 | 1,337,947 | |||||||
2,350,000 | Wisconsin Public Service Corp., | |||||||
1.650%, 12/4/18 | 2,358,803 | |||||||
18,423,721 | ||||||||
Health Care — 3.0% | ||||||||
4,800,000 | Amgen, Inc., 0.998%, 5/22/17(A) | 4,788,979 | ||||||
2,800,000 | Bayer US Finance LLC, 144a, | |||||||
0.867%, 10/7/16(A) | 2,800,375 | |||||||
2,800,000 | Cardinal Health, Inc., 1.700%, 3/15/18 | 2,806,992 | ||||||
7,000,000 | Express Scripts Holding Co., | |||||||
2.650%, 2/15/17 | 7,091,420 | |||||||
17,487,766 | ||||||||
Industrials — 2.8% | ||||||||
2,325,000 | Crane Co., 2.750%, 12/15/18 | 2,369,170 |
33 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal Amount | Market Value | |||||||
Corporate Bonds — 28.9% (Continued) | ||||||||
Industrials — (Continued) | ||||||||
$ | 5,670,000 | CRH America, Inc., 6.000%, 9/30/16 | $ | 5,774,867 | ||||
6,642,000 | Dun & Bradstreet Corp. (The), | |||||||
3.250%, 12/1/17 | 6,679,016 | |||||||
1,000,000 | L-3 Communications Corp., | |||||||
1.500%, 5/28/17 | 996,573 | |||||||
750,000 | L-3 Communications Corp., | |||||||
3.950%, 11/15/16 | 759,777 | |||||||
16,579,403 | ||||||||
Telecommunication Services — 2.5% | ||||||||
5,500,000 | America Movil SAB DE CV (Mexico), | |||||||
2.375%, 9/8/16 | 5,523,006 | |||||||
2,900,000 | BellSouth Corp., 144a, 4.821%, 4/26/16 | 2,907,250 | ||||||
600,000 | Crown Castle Towers LLC, 144a, | |||||||
5.495%, 1/15/17 | 605,742 | |||||||
1,669,000 | Omnicom Group, Inc., | |||||||
5.900%, 4/15/16 | 1,671,246 | |||||||
3,900,000 | Scripps Networks Interactive, Inc., | |||||||
2.700%, 12/15/16 | 3,934,059 | |||||||
14,641,303 | ||||||||
Consumer Discretionary — 2.5% | ||||||||
1,165,000 | Cintas Corp. No 2, 2.850%, 6/1/16 | 1,169,150 | ||||||
4,278,000 | Dollar General Corp., 4.125%, 7/15/17 | 4,416,145 | ||||||
350,000 | ERAC USA Finance LLC, 144a, | |||||||
1.400%, 4/15/16 | 350,058 | |||||||
470,000 | ERAC USA Finance LLC, 144a, | |||||||
6.200%, 11/1/16 | 483,068 | |||||||
5,150,000 | Ford Motor Credit Co. LLC, | |||||||
1.870%, 5/9/16(A) | 5,153,909 | |||||||
1,395,000 | Ford Motor Credit Co. LLC, | |||||||
4.207%, 4/15/16 | 1,396,242 | |||||||
325,000 | Hyundai Capital America, 144a, | |||||||
4.000%, 6/8/17 | 333,107 | |||||||
1,325,000 | Newell Rubbermaid, Inc., | |||||||
2.875%, 12/1/19 | 1,339,486 | |||||||
14,641,165 | ||||||||
Energy —1.7% | ||||||||
2,645,000 | Buckeye Partners LP, 2.650%, 11/15/18 | 2,626,152 | ||||||
2,900,000 | Buckeye Partners LP, 6.050%, 1/15/18 | 3,058,586 | ||||||
3,992,000 | Cameron International Corp., | |||||||
1.150%, 12/15/16 | 3,990,303 | |||||||
428,940 | Ras Laffan Liquefied Natural Gas Co. | |||||||
Ltd. II (Qatar), 144a, 5.298%, 9/30/20 | 456,821 | |||||||
10,131,862 | ||||||||
Consumer Staples — 1.0% | ||||||||
800,000 | Bunge NA Finance LP, 5.900%, 4/1/17 | 832,808 | ||||||
700,000 | Kroger Co. (The), 2.200%, 1/15/17 | 705,244 | ||||||
4,292,000 | SABMiller Holdings, Inc., 144a, | |||||||
2.450%, 1/15/17 | 4,331,358 | |||||||
5,869,410 | ||||||||
Information Technology — 0.8% | ||||||||
4,850,000 | Hewlett Packard Enterprise Co., 144a, | |||||||
2.450%, 10/5/17 | 4,881,666 | |||||||
Materials — 0.6% | ||||||||
400,000 | Glencore Funding LLC, 144a, | |||||||
1.700%, 5/27/16 | 398,591 | |||||||
3,300,000 | RioTinto Finance USA PLC (United | |||||||
Kingdom), 1.482%, 6/17/16(A) | 3,299,720 | |||||||
3,698,311 | ||||||||
Total Corporate Bonds | $ | 170,551,714 | ||||||
Commercial Paper — 10.6% | ||||||||
6,700,000 | AGL CAP, 0.550%, 4/1/16(C) | 6,699,919 | ||||||
7,500,000 | Centennial Energy Holdings, | |||||||
0.100%, 4/1/16(C) | 7,499,893 | |||||||
11,450,000 | KCP&L Greater Missouri, | |||||||
0.600%, 4/1/16(C) | 11,449,861 | |||||||
10,000,000 | MDU Resourses Group, Inc., | |||||||
0.600%, 4/1/16(C) | 9,999,833 | |||||||
7,200,000 | NorthWestern Corp., 0.770%, 4/4/16(C) | 7,199,646 | ||||||
10,000,000 | PCG, 0.560%, 4/4/16(C) | 9,999,610 | ||||||
10,000,000 | Sinopec Century Bright Capital | |||||||
Investment Ltd., 0.650%, 4/1/16(C) | 9,999,879 | |||||||
Total Commercial Paper | $ | 62,848,641 | ||||||
U.S. Government Mortgage-Backed Obligations — 8.2% | ||||||||
182,514 | FHLMC, Pool #1B1580, | |||||||
2.586%, 3/1/34(A) | 192,369 | |||||||
178,932 | FHLMC, Pool #1B2629, | |||||||
2.625%, 11/1/34(A) | 189,396 | |||||||
571,330 | FHLMC, Pool #1B7189, | |||||||
3.250%, 3/1/36(A) | 607,840 | |||||||
160,803 | FHLMC, Pool #1G1471, | |||||||
2.504%, 1/1/37(A) | 170,116 | |||||||
895,946 | FHLMC, Pool #1H1354, | |||||||
2.560%, 11/1/36(A) | 945,545 | |||||||
110,472 | FHLMC, Pool #1H2524, | |||||||
2.601%, 8/1/35(A) | 116,418 | |||||||
538,178 | FHLMC, Pool #1J1813, | |||||||
2.675%, 8/1/37(A) | 569,347 | |||||||
477,217 | FHLMC, Pool #1K1238, | |||||||
2.505%, 7/1/36(A) | 504,362 | |||||||
235,337 | FHLMC, Pool #1L0087, | |||||||
2.500%, 6/1/35(A) | 247,732 | |||||||
490,975 | FHLMC, Pool #1L0147, | |||||||
2.540%, 7/1/35(A) | 523,571 | |||||||
308,979 | FHLMC, Pool #1L1288, | |||||||
2.625%, 5/1/36(A) | 325,241 | |||||||
288,051 | FHLMC, Pool #1Q0080, | |||||||
2.415%, 1/1/36(A) | 303,206 | |||||||
566,831 | FHLMC, Pool #1Q0119, | |||||||
2.582%, 9/1/36(A) | 602,274 | |||||||
1,385,980 | FHLMC, Pool #1Q0187, | |||||||
2.550%, 12/1/36(A) | 1,457,450 | |||||||
743,615 | FHLMC, Pool #1Q0339, | |||||||
2.695%, 4/1/37(A) | 786,086 |
34 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal Amount | Market Value | |||||||
U.S. Government Mortgage-Backed Obligations — 8.2% (Continued) | ||||||||
$ | 218,938 | FHLMC, Pool #1Q0669, | ||||||
2.536%, 11/1/37(A) | $ | 230,297 | ||||||
776,464 | FHLMC, Pool #1Q1303, | |||||||
2.542%, 11/1/36(A) | 819,115 | |||||||
910,807 | FHLMC, Pool #781515, | |||||||
2.517%, 4/1/34(A) | 962,385 | |||||||
380,421 | FHLMC, Pool #782760, | |||||||
2.520%, 11/1/36(A) | 401,429 | |||||||
330,087 | FHLMC, Pool #847795, | |||||||
2.599%, 4/1/35(A) | 347,270 | |||||||
208,858 | FHLMC, Pool #848088, | |||||||
2.642%, 4/1/35(A) | 220,063 | |||||||
654,809 | FHLMC, Pool #848539, | |||||||
2.978%, 4/1/37(A) | 697,420 | |||||||
1,717,860 | FHLMC, Pool #848583, | |||||||
2.612%, 1/1/36(A) | 1,812,247 | |||||||
23,565 | FHLMC, Pool #A92646, 5.500%, 6/1/40 | 26,757 | ||||||
22,245 | FHLMC, Pool #C03505, 5.500%, 6/1/40 | 24,723 | ||||||
72,583 | FHLMC, Pool #C66916, 7.000%, 5/1/32 | 83,927 | ||||||
17,762 | FHLMC, Pool #D94598, 6.500%, 4/1/21 | 20,220 | ||||||
74,751 | FHLMC, Pool #G01840, 5.000%, 7/1/35 | 82,940 | ||||||
972,840 | FHLMC, Pool #G11769, | |||||||
5.000%, 10/1/20 | 1,027,892 | |||||||
617,683 | FHLMC, Pool #G11773, | |||||||
5.000%, 10/1/20 | 653,129 | |||||||
10,718 | FHLMC, Pool #G30085, | |||||||
7.500%, 10/1/17 | 10,979 | |||||||
339,068 | FHLMC, Pool #J10895, | |||||||
4.000%, 10/1/19 | 352,570 | |||||||
235,121 | FNMA, Pool #254868, 5.000%, 9/1/33 | 261,304 | ||||||
106,440 | FNMA, Pool #256272, 5.500%, 6/1/26 | 119,286 | ||||||
182,553 | FNMA, Pool #256852, 6.000%, 8/1/27 | 208,017 | ||||||
40,566 | FNMA, Pool #323832, 7.500%, 7/1/29 | 49,488 | ||||||
3,041 | FNMA, Pool #334593, 7.000%, 5/1/24 | 3,350 | ||||||
210,391 | FNMA, Pool #555380, | |||||||
2.527%, 4/1/33(A) | 219,052 | |||||||
335 | FNMA, Pool #555646, 7.500%, 9/1/16 | 336 | ||||||
97,756 | FNMA, Pool #665773, 7.500%, 6/1/31 | 109,373 | ||||||
159,043 | FNMA, Pool #679742, | |||||||
2.838%, 1/1/40(A) | 164,695 | |||||||
84,779 | FNMA, Pool #681842, | |||||||
2.678%, 2/1/33(A) | 89,206 | |||||||
232,912 | FNMA, Pool #681898, | |||||||
2.441%, 4/1/33(A) | 245,415 | |||||||
250,452 | FNMA, Pool #725245, | |||||||
2.496%, 2/1/34(A) | 262,193 | |||||||
258,038 | FNMA, Pool #725424, 5.500%, 4/1/34 | 292,026 | ||||||
1,570,970 | FNMA, Pool #725490, | |||||||
2.259%, 4/1/34(A) | 1,666,932 | |||||||
215,219 | FNMA, Pool #735439, 6.000%, 9/1/19 | 221,907 | ||||||
46,445 | FNMA, Pool #735484, 5.000%, 5/1/35 | 51,509 | ||||||
175,457 | FNMA, Pool #735539, | |||||||
2.669%, 4/1/35(A) | 184,731 | |||||||
104,121 | FNMA, Pool #743207, | |||||||
2.376%, 10/1/33(A) | 109,423 | |||||||
101,182 | FNMA, Pool #745467, | |||||||
2.790%, 4/1/36(A) | 107,051 | |||||||
117,139 | FNMA, Pool #745790, | |||||||
2.393%, 8/1/36(A) | 123,583 | |||||||
717,044 | FNMA, Pool #761411, 4.500%, 5/1/19 | 743,919 | ||||||
143,344 | FNMA, Pool #784365, | |||||||
2.050%, 5/1/34(A) | 150,115 | |||||||
259,680 | FNMA, Pool #791978, | |||||||
2.393%, 9/1/34(A) | 270,741 | |||||||
93,844 | FNMA, Pool #804001, | |||||||
2.464%, 10/1/34(A) | 98,685 | |||||||
75,005 | FNMA, Pool #809897, | |||||||
2.663%, 3/1/35(A) | 79,310 | |||||||
272,075 | FNMA, Pool #813170, | |||||||
2.539%, 1/1/35(A) | 284,275 | |||||||
1,582,588 | FNMA, Pool #815323, | |||||||
2.089%, 1/1/35(A) | 1,646,847 | |||||||
263,732 | FNMA, Pool #820364, | |||||||
1.698%, 4/1/35(A) | 277,748 | |||||||
879,831 | FNMA, Pool #827787, | |||||||
2.054%, 5/1/35(A) | 925,675 | |||||||
112,081 | FNMA, Pool #828480, | |||||||
2.480%, 6/1/35(A) | 119,021 | |||||||
181,509 | FNMA, Pool #839239, | |||||||
2.510%, 9/1/35(A) | 191,414 | |||||||
163,881 | FNMA, Pool #888179, | |||||||
2.688%, 2/1/37(A) | 172,838 | |||||||
96,179 | FNMA, Pool #888548, | |||||||
2.541%, 5/1/35(A) | 101,261 | |||||||
161,638 | FNMA, Pool #889060, 6.000%, 1/1/38 | 186,019 | ||||||
152,134 | FNMA, Pool #889061, 6.000%, 1/1/38 | 175,652 | ||||||
9,827 | FNMA, Pool #889382, 5.500%, 4/1/38 | 11,248 | ||||||
552,880 | FNMA, Pool #922674, | |||||||
2.743%, 4/1/36(A) | 580,482 | |||||||
383,769 | FNMA, Pool #931676, 5.500%, 1/1/19 | 399,393 | ||||||
220,227 | FNMA, Pool #950385, | |||||||
1.691%, 8/1/37(A) | 226,463 | |||||||
91,870 | FNMA, Pool #960376, 5.500%, 12/1/37 | 103,283 | ||||||
56,047 | FNMA, Pool #995284, 5.500%, 3/1/20 | 57,216 | ||||||
779,142 | FNMA, Pool #AA1150, 4.000%, 4/1/23 | 811,630 | ||||||
14,152 | FNMA, Pool #AD0941, 5.500%, 4/1/40 | 16,365 | ||||||
118,029 | FNMA, Pool #AE0363, 5.000%, 7/1/37 | 131,100 | ||||||
521,821 | FNMA, Pool #AE0727, 4.000%, 10/1/20 | 543,351 | ||||||
169,580 | FNMA, Pool #AE5441, 5.000%, 10/1/40 | 187,612 | ||||||
267,098 | FNMA, Pool #AI6588, 4.000%, 7/1/26 | 285,140 | ||||||
259,403 | FNMA, Pool #AI8506, 4.000%, 8/1/26 | 277,254 | ||||||
254,395 | FNMA, Pool #AL0211, 5.000%, 4/1/41 | 282,418 | ||||||
45,796 | FNMA, Pool #AL0302, 5.000%, 4/1/24 | 49,130 | ||||||
1,627,764 | FNMA, Pool #AL0478, | |||||||
2.572%, 4/1/36(A) | 1,717,636 | |||||||
439,082 | FNMA, Pool #AL0543, 5.000%, 7/1/41 | 488,847 | ||||||
260,393 | FNMA, Pool #AL1105, 4.500%, 12/1/40 | 286,977 |
35 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
U.S. Government Mortgage-Backed Obligations — 8.2% (Continued) | ||||||||
$ | 131,727 | FNMA, Pool #AL2591, 5.500%, 5/1/38 | $ | 143,167 | ||||
983,820 | FNMA, Pool #AL5275, | |||||||
2.020%, 9/1/37(A) | 1,009,789 | |||||||
5,465,885 | FNMA, Pool #AL7396, | |||||||
2.065%, 2/1/37(A) | 5,699,484 | |||||||
17,204 | GNMA, Pool #344233, 8.000%, 2/15/23 | 18,751 | ||||||
67,130 | GNMA, Pool #345123, | |||||||
8.000%, 12/15/23 | 74,307 | |||||||
7,484 | GNMA, Pool #569337, 6.500%, 4/15/22 | 8,567 | ||||||
18,928 | GNMA, Pool #780322, | |||||||
8.000%, 11/15/22 | 21,445 | |||||||
1,466 | GNMA, Pool #780327, | |||||||
8.000%, 11/15/17 | 1,501 | |||||||
682,963 | GNMA, Pool #80826, | |||||||
1.750%, 2/20/34(A) | 711,991 | |||||||
338,357 | GNMA, Pool #80889, | |||||||
1.750%, 4/20/34(A) | 352,053 | |||||||
563,662 | GNMA, Pool #81016, | |||||||
1.875%, 8/20/34(A) | 586,517 | |||||||
4,193 | GNMA, Pool #814, 8.000%, 8/20/17 | 4,232 | ||||||
1,243,434 | GNMA, Pool #82760, | |||||||
2.500%, 3/20/41(A) | 1,280,228 | |||||||
2,459 | GNMA, Pool #8426, | |||||||
3.000%, 11/20/18(A) | 2,483 | |||||||
1,508,824 | GNMA, Pool #MA2392, | |||||||
2.000%, 11/20/44(A) | 1,559,867 | |||||||
5,184,213 | GNMA, Pool #MA2466, | |||||||
2.000%, 12/20/44(A) | 5,355,935 | |||||||
Total U.S. Government Mortgage-Backed Obligations | $ | 48,512,575 | ||||||
Commercial Mortgage-Backed Securities — 6.4% | ||||||||
16,653 | Banc of America Merrill Lynch | |||||||
Commercial Mortgage, Inc., Ser | ||||||||
2006-4, Class A4, 5.634%, 7/10/46 | 16,667 | |||||||
5,182,000 | CD Mortgage Trust, Ser 2006-CD3, | |||||||
Class AM, 5.648%, 10/15/48 | 5,216,104 | |||||||
4,991,000 | COMM Mortgage Trust, Ser | |||||||
2012-9W57, Class A, 144a, | ||||||||
2.365%, 2/10/29 | 5,022,144 | |||||||
3,641,259 | COMM Mortgage Trust, Ser | |||||||
2014-SAVA, Class A, 144a, | ||||||||
1.587%, 6/15/34(A) | 3,577,028 | |||||||
9,821 | Commercial Mortgage Trust, Ser | |||||||
2007-C2, Class A2, | ||||||||
5.448%, 1/15/49(A) | 9,810 | |||||||
2,288,523 | DBRR Trust, Ser 2013-EZ3, Class A, | |||||||
144a, 1.636%, 12/18/49(A) | 2,284,587 | |||||||
1,318,388 | DBUBS Mortgage Trust, Ser | |||||||
2011-LC2A, Class A1FL, 144a, | ||||||||
1.788%, 7/12/44(A) | 1,305,320 | |||||||
46,173 | FDIC Guaranteed Notes, Ser 2010-C1, | |||||||
Class A, 144a, 2.980%, 12/6/20 | 46,978 | |||||||
1,006,915 | First Union Commercial Mortgage | |||||||
Trust, Ser 1999-C1, Class F, 144a, | ||||||||
5.350%, 10/15/35 | 1,007,238 | |||||||
4,965,000 | Hyatt Hotel Portfolio Trust, Ser | |||||||
2015-HYT, Class A, 144a, | ||||||||
1.686%, 11/15/29(A) | 4,919,758 | |||||||
240,039 | JP Morgan Chase Commercial | |||||||
Mortgage Securities Trust, Ser | ||||||||
2005-CB11, Class AJ, | ||||||||
5.412%, 8/12/37(A) | 239,657 | |||||||
229,378 | LB-UBS Commercial Mortgage Trust, | |||||||
Ser 2004-C7, Class H, 144a, | ||||||||
4.793%, 10/15/36(A)†† | 229,663 | |||||||
33,891 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 1998-C1, Class A3, | ||||||||
6.720%, 11/15/26(A) | 34,057 | |||||||
4,735,000 | Merrill Lynch Mortgage Trust, Ser | |||||||
2006-C2, Class AM, | ||||||||
5.782%, 8/12/43(A) | 4,758,487 | |||||||
2,800,000 | PFP 2015-2 Ltd., Ser 2015-2, Class A, | |||||||
144a, 1.891%, 7/14/34(A) | 2,768,769 | |||||||
61,561 | PFP III 2014-1 Ltd., Ser 2014-1, Class A, | |||||||
144a, 1.606%, 6/14/31(A) | 61,470 | |||||||
23,236,456 | UBS-Citigroup Commercial Mortgage | |||||||
Trust, Ser 2011-C1, Class XA, 144a, | ||||||||
2.423%, 1/10/45(A)(D) | 1,723,074 | |||||||
5,000,000 | Wells Fargo Commercial Mortgage | |||||||
Trust, Ser 2014-TISH, Class B, 144a, | ||||||||
1.786%, 2/15/27(A) | 4,890,886 | |||||||
Total Commercial Mortgage-Backed Securities | $ | 38,111,697 | ||||||
Municipal Bonds — 3.7% | ||||||||
Connecticut — 0.1% | ||||||||
425,000 | State of Connecticut, Ser A, UTGO, | |||||||
1.320%, 5/15/18(A) | 425,982 | |||||||
Florida — 0.8% | ||||||||
5,000,000 | State Brd of Admin Fin Corp., Txbl Ser | |||||||
A, 2.163%, 7/1/19 | 5,031,650 | |||||||
Massachusetts — 0.8% | ||||||||
4,450,000 | MA St Edu Fin Auth, Ser B 1, 2.188%, | |||||||
1/1/31(A) | 4,450,000 | |||||||
Minnesota — 0.6% | ||||||||
1,500,000 | Saint Paul MN Hsg & Redev Auth, Txbl | |||||||
Ref Healthpartners Oblig, 1.041%, | ||||||||
7/1/16 | 1,500,675 | |||||||
1,000,000 | Saint Paul MN Hsg & Redev Auth, Txbl | |||||||
Ref Healthpartners Oblig, 1.400%, | ||||||||
7/1/17 | 1,002,460 | |||||||
1,095,000 | Saint Paul MN Hsg & Redev Auth, Txbl | |||||||
Ref Healthpartners Oblig, 1.838%, | ||||||||
7/1/18 | 1,102,019 | |||||||
3,605,154 |
36 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal | Market | |||||||
Amount | Value | |||||||
Municipal Bonds — 3.7% (Continued) | ||||||||
New York — 0.6% | ||||||||
$ | 3,750,000 | Brookhaven NY IDA, Variable | ||||||
Intercounty Asso, (LOC: Capital One | ||||||||
NA), 0.750%, 1/1/25(A) | $ | 3,750,000 | ||||||
Ohio — 0.3% | ||||||||
1,540,000 | Akron OH COP, Muni Baseball | |||||||
Stadium, 1.750%, 12/1/16 | 1,548,008 | |||||||
490,000 | Medina Co OH IDR, Mack Inds Proj, | |||||||
(LOC: JP Morgan Chase Bank NA), | ||||||||
0.630%, 7/1/16(A) | 490,000 | |||||||
2,038,008 | ||||||||
Pennsylvania — 0.3% | ||||||||
1,575,000 | PA St IDA, 144a, 144a, 1.635%, 7/1/16 | 1,575,929 | ||||||
South Carolina — 0.2% | ||||||||
230,000 | Spartanburg SC Wtrwks Rev, Txbl Ref | |||||||
Sys Ser B, 1.219%, 12/1/16 | 230,283 | |||||||
535,000 | Spartanburg SC Wtrwks Rev, Txbl Ref | |||||||
Sys Ser B, 1.519%, 12/1/17 | 537,884 | |||||||
280,000 | Spartanburg SC Wtrwks Rev, Txbl Ref | |||||||
Sys Ser B, 1.785%, 12/1/18 | 283,128 | |||||||
1,051,295 | ||||||||
Total Municipal Bonds | $ | 21,928,018 | ||||||
Non-Agency Collateralized Mortgage Obligations — 3.3% | ||||||||
3,247,275 | Bear Stearns ARM Trust, Ser 2003-1, | |||||||
Class 5A1, 2.471%, 4/25/33(A)†† | 3,223,561 | |||||||
380,182 | Bear Stearns ARM Trust, Ser 2004-1, | |||||||
Class 13A3, 3.177%, 4/25/34(A)†† | 365,224 | |||||||
297,603 | Bear Stearns Asset Backed Securities | |||||||
Trust, Ser 2003-AC7, Class A2, | ||||||||
5.750%, 1/25/34(B)†† | 305,693 | |||||||
124,568 | Community Program Loan Trust, Ser | |||||||
1987-A, Class A5, 4.500%, 4/1/29 | 123,749 | |||||||
1,944,206 | CSMC Trust, Ser 2012-CIM1, Class A1, | |||||||
144a, 3.380%, 2/25/42(A) | 1,955,387 | |||||||
111,468 | FDIC Structured Sale Guaranteed | |||||||
Notes, Ser 2010-S3, Class A, 144a, | ||||||||
2.740%, 12/3/20 | 113,684 | |||||||
239,559 | JP Morgan Mortgage Trust, Ser | |||||||
2006-A4, Class 2A2, | ||||||||
2.503%, 6/25/36(A) | 213,566 | |||||||
24,640 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 2003-A1, Class 2A, | ||||||||
2.786%, 12/25/32(A) | 24,236 | |||||||
314,303 | Merrill Lynch Mortgage Investors | |||||||
Trust, Ser 2004-1, Class 1A, | ||||||||
2.294%, 12/25/34(A) | 307,961 | |||||||
3,875,596 | Mill City Mortgage Trust, Ser 2015-1, | |||||||
Class A1, 144a, 2.230%, 6/25/56(A) | 3,871,983 | |||||||
2,319,984 | People’s Choice Home Loan Securities | |||||||
Trust Series, Ser 2005-1, Class M3, | ||||||||
1.306%, 1/25/35(A) | 2,319,583 | |||||||
1,178,373 | RFMSI Trust, Ser 2007-SA1, Class 1A1, | |||||||
3.136%, 2/25/37(A) | 971,747 | |||||||
4,659,262 | Springleaf Mortgage Loan Trust, Ser | |||||||
2013-1A, Class M5, 144a, | ||||||||
2.207%, 6/25/58(A) | 4,651,786 | |||||||
252,859 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-G, Class | ||||||||
A1, 2.615%, 6/25/33(A) | 252,813 | |||||||
625,732 | Wells Fargo Mortgage Backed | |||||||
Securities Trust, Ser 2003-M, Class | ||||||||
A1, 2.787%, 12/25/33(A) | 624,581 | |||||||
Total Non-Agency Collateralized Mortgage Obligations | $ | 19,325,554 | ||||||
U.S. Government Agency Obligations — 1.4% | ||||||||
583,000 | Government Trust Certificate, | |||||||
0.000%, 10/1/16# | 581,172 | |||||||
5,000,000 | Overseas Private Investment Corp., | |||||||
0.400%, 7/20/22(A) | 5,000,000 | |||||||
2,100,000 | Overseas Private Investment Corp., | |||||||
0.400%, 10/15/33(A) | 2,100,000 | |||||||
37,661 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2002-20A, Class 1, 6.140%, 1/1/22 | 40,749 | |||||||
56,925 | Small Business Administration | |||||||
Participation Certificates, Ser | ||||||||
2003-20E, Class 1, 4.640%, 5/1/23 | 60,701 | |||||||
233,722 | Small Business Administration Pools, | |||||||
507682, 0.900%, 1/25/26(A) | 232,931 | |||||||
176,469 | Small Business Administration Pools, | |||||||
508374, 1.000%, 4/25/28(A) | 176,196 | |||||||
Total U.S. Government Agency Obligations | $ | 8,191,749 | ||||||
Agency Collateralized Mortgage Obligations — 1.3% | ||||||||
125,930,350 | FHLMC Multifamily Structured Pass | |||||||
Through Certificates, Ser K504 Class | ||||||||
X1, 0.228%, 9/25/20(A) | 967,007 | |||||||
57,241 | FHLMC REMIC, Ser 2510 Class TA, | |||||||
4.000%, 6/15/32 | 58,999 | |||||||
547,922 | FHLMC REMIC, Ser 2770 Class FH, | |||||||
0.836%, 3/15/34(A) | 551,749 | |||||||
189,357 | FHLMC REMIC, Ser 3414 Class MB, | |||||||
4.250%, 12/15/19 | 194,317 | |||||||
1,455,243 | FHLMC REMIC, Ser 4459 Class NG, | |||||||
6.500%, 10/15/24 | 1,474,450 | |||||||
315,520 | FNMA REMIC, Ser 2003-119, Class PU, | |||||||
4.000%, 11/25/33 | 323,814 | |||||||
108,659 | FNMA REMIC, Ser 2003-33, Class AM, | |||||||
4.250%, 5/25/33 | 117,386 | |||||||
101,959 | FNMA REMIC, Ser 2003-42, Class CA, | |||||||
4.000%, 5/25/33 | 107,194 | |||||||
462,287 | FNMA REMIC, Ser 2003-81, Class FE, | |||||||
0.933%, 9/25/33(A) | 466,474 |
37 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
Principal Amount | Market Value | |||||||
Agency Collateralized Mortgage Obligations — 1.3% (Continued) | ||||||||
$ | 139,873 | FNMA REMIC, Ser 2008-35, Class IO, | ||||||
4.500%, 4/25/23(D) | $ | 3,391 | ||||||
183,190 | FNMA REMIC, Ser 2010-13, Class WD, | |||||||
4.250%, 3/25/25 | 188,842 | |||||||
78,603 | FNMA REMIC, Ser 2010-54, Class NA, | |||||||
4.500%, 10/25/39 | 80,296 | |||||||
170,887 | FNMA REMIC, Ser 2011-52, Class AH, | |||||||
2.750%, 10/25/18 | 173,089 | |||||||
456,194 | FNMA REMIC, Ser 2012-102, Class NA, | |||||||
1.500%, 9/25/27 | 452,723 | |||||||
174,674 | GNMA, Ser 2002-72, Class AB, | |||||||
4.500%, 10/20/32 | 189,370 | |||||||
19,237,659 | GNMA, Ser 2011-142, Class IO, | |||||||
0.837%, 9/16/46(A)(D) | 720,150 | |||||||
210,862 | GNMA, Ser 2011-161, Class A, | |||||||
1.738%, 1/16/34 | 211,177 | |||||||
157,884 | GNMA, Ser 2011-57, Class BA, | |||||||
3.000%, 5/20/40 | 163,110 | |||||||
118,681 | GNMA, Ser 2011-78, Class AB, | |||||||
2.450%, 2/16/39 | 118,798 | |||||||
7,132,732 | GNMA, Ser 2011-78, Class IX, | |||||||
0.505%, 8/16/46(A)(D) | 251,417 | |||||||
274,271 | GNMA, Ser 2012-27, Class A, | |||||||
1.614%, 7/16/39 | 271,341 | |||||||
12,981,367 | GNMA, Ser 2013-121, Class KX, | |||||||
0.622%, 10/16/44(A)(D) | 393,271 | |||||||
Total Agency Collateralized Mortgage Obligations | $ | 7,478,365 | ||||||
Shares | ||||||||
Investment Fund — 0.0% | ||||||||
70,908 | Dreyfus Cash Management, | |||||||
Institutional Shares, 0.30%∞ Ω | $ | 70,908 | ||||||
Total Investment Securities — 101.1% | ||||||||
(Cost $599,937,894) | $ | 597,378,456 | ||||||
Liabilities in Excess of | ||||||||
Other Assets — (1.1%) | (6,773,851 | ) | ||||||
Net Assets — 100.0% | $ | 590,604,605 |
(A) | Variable rate security - Rate reflected is the rate in effect as of March 31, 2016. |
(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 as of March 31,2016. |
(C) | Rate reflects yield at the time of purchase. |
(D) | Interest only security. This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding. |
# | Zero coupon bond - Rate shown reflects effective yield to maturity at time of purchase. |
†† | 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. |
∞ | Open-End Fund. |
Ω | Represents the 7-day SEC yield as of March 31, 2016. |
Portfolio Abbreviations:
ARM - Adjustable Rate Mortgage
CDO - Collateralized Debt Obligations
COP - Certificate of Participation
CLO - Collateralized Loan Obligations
FDIC - Federal Deposit Insurance Corporation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
IDA - Industrial Development Agency
IDR - Industrial Development Revenue
LLC - Limited Liability Company
LOC - Letter of Credit
LP - Limited Partnership
MTN - Medium Term Note
PLC - Public Limited Company
REIT - Real Estate Investment Trust
REMIC - Real Estate Mortgage Investment Conduit
UTGO - Unlimited Tax General Obligation
38 |
Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)
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, 2016, these securities were valued at $238,875,938 or 40.4% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying Notes to Financial Statements.
Valuation inputs at Reporting Date: | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Asset-Backed Securities | $ | — | $ | 220,359,235 | $ | — | $ | 220,359,235 | ||||||||
Corporate Bonds | — | 170,551,714 | — | 170,551,714 | ||||||||||||
Commercial Paper | — | 62,848,641 | — | 62,848,641 | ||||||||||||
U.S. Government Mortgage-Backed Obligations | — | 48,512,575 | — | 48,512,575 | ||||||||||||
Commercial Mortgage-Backed Securities | — | 38,111,697 | — | 38,111,697 | ||||||||||||
Municipal Bonds | — | 21,928,018 | — | 21,928,018 | ||||||||||||
Non-Agency Collateralized Mortgage Obligations | — | 19,325,554 | — | 19,325,554 | ||||||||||||
U.S. Government Agency Obligations | — | 8,191,749 | — | 8,191,749 | ||||||||||||
Agency Collateralized Mortgage Obligations | — | 7,478,365 | — | 7,478,365 | ||||||||||||
Investment Fund | 70,908 | — | — | 70,908 | ||||||||||||
Total | $ | 70,908 | $ | 597,307,548 | $ | — | $ | 597,378,456 |
See accompanying Notes to Financial Statements.
39 |
Statements of Assets and Liabilities
March 31, 2016 (Unaudited)
Touchstone Arbitrage Fund | Touchstone Emerging Markets Equity Fund | Touchstone Merger Arbitrage Fund | Touchstone Mid Cap Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at cost | $ | 121,783,421 | $ | 17,396,732 | $ | 233,322,405 | $ | 673,435,785 | ||||||||
Investments, at market value(A) | $ | 123,351,514 | $ | 14,288,462 | $ | 233,618,036 | $ | 710,271,439 | ||||||||
Cash | 2,716,670 | — | 3,497,033 | — | ||||||||||||
Foreign Currency(B) | — | 737 | — | — | ||||||||||||
Cash collateral for securities sold short and written options | 20,402,426 | — | 3,596,107 | — | ||||||||||||
Dividends and interest receivable | 57,898 | 92,004 | 194,607 | 668,296 | ||||||||||||
Receivable for capital shares sold | 902,790 | 1,212 | 86,422 | 1,096,787 | ||||||||||||
Receivable for investments sold | 1,872,225 | — | 2,115,855 | — | ||||||||||||
Receivable for securities sold short | 202,221 | — | 240,028 | — | ||||||||||||
Receivable for securities lending income | 423 | 116 | — | 2,248 | ||||||||||||
Receivable from Investment Advisor | — | 23,381 | — | — | ||||||||||||
Tax reclaim receivable | 2,896 | — | 6,764 | — | ||||||||||||
Other assets | 20,995 | 59,945 | 23,087 | 51,834 | ||||||||||||
Total Assets | 149,530,058 | 14,465,857 | 243,377,939 | 712,090,604 | ||||||||||||
Liabilities | ||||||||||||||||
Securities sold short(C) | 26,888,141 | — | 31,168,531 | — | ||||||||||||
Dividend and interest payable on securities sold short | 41,042 | — | 53,636 | — | ||||||||||||
Bank overdrafts | — | — | — | — | ||||||||||||
Unrealized depreciation on forward foreign currency contracts | 276,571 | — | 338,405 | — | ||||||||||||
Payable for return of collateral for securities on loan | — | 31,755 | — | 3,692,861 | ||||||||||||
Payable for capital shares redeemed | 215,181 | 34,942 | 301,923 | 1,035,885 | ||||||||||||
Payable for investments purchased | 2,552,175 | — | 10,846,831 | — | ||||||||||||
Payable to close securities sold short | — | — | 201 | — | ||||||||||||
Payable to Investment Advisor | 103,998 | — | 177,844 | 450,733 | ||||||||||||
Payable to other affiliates | 21,929 | 231 | 42,721 | 123,710 | ||||||||||||
Payable to Trustees | 3,790 | 3,790 | 3,790 | 3,790 | ||||||||||||
Payable for professional services | 13,378 | 8,353 | 15,393 | 15,246 | ||||||||||||
Payable to Transfer Agent | 18,880 | 30,292 | 32,781 | 183,311 | ||||||||||||
Payable for reports to shareholders | 17,320 | 15,267 | 22,828 | 36,382 | ||||||||||||
Other accrued expenses and liabilities | 808 | 6,025 | 799 | 1,145 | ||||||||||||
Total Liabilities | 30,153,213 | 130,655 | 43,005,683 | 5,543,063 | ||||||||||||
Net Assets | $ | 119,376,845 | $ | 14,335,202 | $ | 200,372,256 | $ | 706,547,541 | ||||||||
Net assets consist of: | ||||||||||||||||
Par value | $ | 116,579 | $ | 16,936 | $ | 183,370 | $ | 288,104 | ||||||||
Paid-in capital | 117,379,231 | 114,115,643 | 198,616,277 | 784,073,920 | ||||||||||||
Accumulated net investment income (loss) | (286,917 | ) | (201,663 | ) | (591,058 | ) | 4,171,443 | |||||||||
Accumulated net realized gains (losses) on investments, foreign currency transactions, written options and securities sold short | 2,229,804 | (96,489,173 | ) | 3,693,801 | (118,821,580 | ) | ||||||||||
Net unrealized appreciation (depreciation) on investments, foreign currency transactions, written options and securities sold short | (61,852 | ) | (3,106,541 | ) | (1,530,134 | ) | 36,835,654 | |||||||||
Net Assets | $ | 119,376,845 | $ | 14,335,202 | $ | 200,372,256 | $ | 706,547,541 | ||||||||
(A) Includes market value of securities on loan of: | $ | — | $ | 30,733 | $ | — | $ | 3,639,444 | ||||||||
(B) Cost of foreign currency: | $ | — | $ | 737 | $ | — | $ | — | ||||||||
(C) Proceeds received for securities sold short: | $ | 25,534,767 | $ | — | $ | 29,681,171 | $ | — |
See accompanying Notes to Financial Statements.
40 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone Mid Cap Value Fund | Touchstone Premium Yield Equity Fund | Touchstone Sands Capital Select Growth Fund | Touchstone Small Cap Fund | |||||||||||
$ | 326,263,876 | $ | 139,601,625 | $ | 2,738,977,113 | $ | 522,669,230 | |||||||
$ | 359,341,019 | $ | 141,135,678 | $ | 3,948,968,568 | $ | 647,462,839 | |||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
571,088 | 354,452 | 600,241 | 1,152,604 | |||||||||||
709,522 | 214,251 | 4,467,172 | 730,468 | |||||||||||
5,073,032 | 1,545,135 | 14,556,259 | 8,765,983 | |||||||||||
— | — | — | — | |||||||||||
2,071 | — | 77,312 | 4,524 | |||||||||||
— | — | — | — | |||||||||||
172 | 34,259 | — | 906 | |||||||||||
31,814 | 26,936 | 117,246 | 55,101 | |||||||||||
365,728,718 | 143,310,711 | 3,968,786,798 | 658,172,425 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | 133,805 | |||||||||||
— | — | — | — | |||||||||||
10,647,766 | — | 162,942,959 | 13,803,365 | |||||||||||
759,212 | 1,824,656 | 17,314,309 | 1,110,807 | |||||||||||
4,904,273 | — | — | — | |||||||||||
— | — | — | — | |||||||||||
228,449 | 74,106 | 1,690,617 | 451,918 | |||||||||||
13,698 | 39,751 | 1,419,504 | 98,284 | |||||||||||
3,790 | 3,790 | 3,790 | 3,790 | |||||||||||
13,838 | 10,627 | 71,147 | 16,529 | |||||||||||
54,941 | 37,228 | 1,154,431 | 111,558 | |||||||||||
21,743 | 13,550 | 229,688 | 13,891 | |||||||||||
1,124 | 638 | 1,707 | 506 | |||||||||||
16,648,834 | 2,004,346 | 184,828,152 | 15,744,453 | |||||||||||
$ | 349,079,884 | $ | 141,306,365 | $ | 3,783,958,646 | $ | 642,427,972 | |||||||
$ | 216,257 | $ | 176,812 | $ | 2,520,081 | $ | 394,393 | |||||||
315,409,865 | 144,073,380 | 2,352,459,728 | 572,952,881 | |||||||||||
77,458 | 346,329 | (36,536,400 | ) | 1,837,451 | ||||||||||
299,161 | (4,824,209 | ) | 255,523,782 | (57,550,362 | ) | |||||||||
33,077,143 | 1,534,053 | 1,209,991,455 | $ | 124,793,609 | ||||||||||
$ | 349,079,884 | $ | 141,306,365 | $ | 3,783,958,646 | $ | 642,427,972 | |||||||
$ | 10,253,281 | $ | — | $ | 161,129,553 | $ | 13,522,834 | |||||||
$ | — | $ | — | $ | — | $ | — | |||||||
$ | — | $ | — | $ | — | $ | — |
41 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone Arbitrage Fund | Touchstone Emerging Markets Equity Fund | Touchstone Merger Arbitrage Fund | Touchstone Mid Cap Fund | |||||||||||||
Pricing of Class A Shares | ||||||||||||||||
Net assets applicable to Class A shares | $ | 7,691,836 | $ | 2,525,667 | $ | 20,283,412 | $ | 57,202,658 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 754,671 | 297,462 | 1,867,317 | 2,337,621 | ||||||||||||
Net asset value price per share* | $ | 10.19 | $ | 8.49 | $ | 10.86 | $ | 24.47 | ||||||||
Maximum sales charge - Class A shares | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | ||||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share - Class A shares | $ | 10.81 | $ | 9.01 | $ | 11.52 | $ | 25.96 | ||||||||
Pricing of Class C Shares | ||||||||||||||||
Net assets applicable to Class C shares | $ | 8,872,083 | $ | 1,036,938 | $ | 17,038,890 | $ | 61,097,197 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 884,496 | 124,217 | 1,622,780 | 2,603,756 | ||||||||||||
Net asset value, offering price per share** | $ | 10.03 | $ | 8.35 | $ | 10.50 | $ | 23.47 | ||||||||
Pricing of Class Y Shares | ||||||||||||||||
Net assets applicable to Class Y shares | $ | 94,226,400 | $ | 6,430,216 | $ | 85,439,855 | $ | 497,242,759 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 9,183,930 | 756,336 | 7,791,469 | 20,168,302 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.26 | $ | 8.50 | $ | 10.97 | $ | 24.65 | ||||||||
Pricing of Class Z Shares | ||||||||||||||||
Net assets applicable to Class Z shares | $ | — | $ | — | $ | — | $ | 21,615,476 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | — | — | — | 888,909 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | — | $ | 24.32 | ||||||||
Pricing of Institutional Class Shares | ||||||||||||||||
Net assets applicable to Institutional Class Shares | $ | 8,586,526 | $ | 4,342,381 | $ | 77,610,099 | $ | 69,389,451 | ||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 834,844 | 515,620 | 7,055,453 | 2,811,844 | ||||||||||||
Net asset value, offering price and redemption price per share | $ | 10.29 | $ | 8.42 | $ | 11.00 | $ | 24.68 |
* There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a $1 million or more subscription may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase.
** Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge.
See accompanying Notes to Financial Statements.
42 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone Mid Cap Value Fund | Touchstone Premium Yield Equity Fund | Touchstone Sands Capital Select Growth Fund | Touchstone Small Cap Fund | |||||||||||
$ | 8,256,082 | $ | 27,361,071 | $ | 170,898,933 | $ | 49,707,095 | |||||||
514,415 | 3,417,994 | 11,613,980 | 3,077,916 | |||||||||||
$ | 16.05 | $ | 8.01 | $ | 14.71 | $ | 16.15 | |||||||
5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | |||||||
$ | 17.03 | $ | 8.50 | $ | 15.61 | $ | 17.14 | |||||||
$ | 2,248,445 | $ | 26,645,702 | $ | 136,862,895 | $ | 17,977,330 | |||||||
142,061 | 3,332,861 | 9,739,739 | 1,152,098 | |||||||||||
$ | 15.83 | $ | 7.99 | $ | 14.05 | $ | 15.60 | |||||||
$ | 211,833,775 | $ | — | $ | 2,539,210,135 | $ | 309,499,951 | |||||||
13,141,353 | — | 167,000,546 | 18,950,609 | |||||||||||
$ | 16.12 | $ | — | $ | 15.20 | $ | 16.33 | |||||||
$ | — | $ | — | $ | 936,986,683 | $ | — | |||||||
$ | — | $ | — | 63,653,872 | — | |||||||||
$ | — | $ | — | $ | 14.72 | $ | — | |||||||
$ | 126,741,582 | $ | 87,299,592 | $ | — | $ | 265,243,596 | |||||||
7,827,892 | 10,930,299 | — | 16,258,672 | |||||||||||
$ | 16.19 | $ | 7.99 | $ | — | $ | 16.31 |
43 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | |||||||||||
Small | Touchstone | Ultra Short | ||||||||||
Cap Value | Total Return | Duration Fixed | ||||||||||
Fund | Bond Fund | Income Fund | ||||||||||
Assets | ||||||||||||
Investments, at cost | $ | 56,236,527 | $ | 196,537,726 | $ | 599,937,894 | ||||||
Investments, at market value(A) | $ | 53,669,885 | $ | 198,180,234 | $ | 597,378,456 | ||||||
Cash | — | 28 | 43,460 | |||||||||
Dividends and interest receivable | 120,204 | 1,587,022 | 1,995,939 | |||||||||
Receivable for capital shares sold | 554 | 354,895 | 3,993,127 | |||||||||
Receivable for investments sold | 1,115,761 | — | 145,952 | |||||||||
Receivable from securities lending income | 1,214 | 13 | — | |||||||||
Other assets | 15,028 | 21,203 | 31,965 | |||||||||
Total Assets | 54,922,646 | 200,143,395 | 603,588,899 | |||||||||
Liabilities | ||||||||||||
Dividends payable | — | — | 124,201 | |||||||||
Payable for return of collateral for securities on loan | 2,065,343 | 197,943 | — | |||||||||
Payable for capital shares redeemed | 38,697 | 302,712 | 11,214,740 | |||||||||
Payable for investments purchased | 493,087 | 79,570 | 1,218,165 | |||||||||
Payable to Investment Advisor | 33,320 | 48,022 | 116,032 | |||||||||
Payable to other affiliates | 3,048 | 17,877 | 164,031 | |||||||||
Payable to Trustees | 3,790 | 3,790 | 3,790 | |||||||||
Payable for professional services | 10,514 | 12,136 | 17,222 | |||||||||
Payable to Transfer Agent | 11,597 | 15,338 | 76,585 | |||||||||
Payable for reports to shareholders | 14,321 | 11,771 | 32,729 | |||||||||
Other accrued expenses and liabilities | 826 | 5,700 | 16,799 | |||||||||
Total Liabilities | 2,674,543 | 694,859 | 12,984,294 | |||||||||
Net Assets | $ | 52,248,103 | $ | 199,448,536 | $ | 590,604,605 | ||||||
Net assets consist of: | ||||||||||||
Par value | $ | 25,472 | $ | 194,884 | $ | 635,029 | ||||||
Paid-in capital | 66,445,342 | 199,365,101 | 619,040,935 | |||||||||
Accumulated net investment income (loss) | 24,995 | (160,177 | ) | (2,316,383 | ) | |||||||
Accumulated net realized losses on investments | (11,681,064 | ) | (1,593,780 | ) | (24,195,538 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | (2,566,642 | ) | 1,642,508 | (2,559,438 | ) | |||||||
Net Assets | $ | 52,248,103 | $ | 199,448,536 | $ | 590,604,605 | ||||||
(A) Includes market value of securities on loan of: | $ | 1,978,577 | $ | 189,415 | $ | — |
See accompanying Notes to Financial Statements.
44 |
Statements of Assets and Liabilities (Unaudited) (Continued)
Touchstone | Touchstone | |||||||||||
Small | Touchstone | Ultra Short | ||||||||||
Cap Value | Total Return | Duration Fixed | ||||||||||
Fund | Bond Fund | Income Fund | ||||||||||
Pricing of Class A Shares | ||||||||||||
Net assets applicable to Class A shares | $ | 24,530,018 | $ | 5,944,647 | $ | 10,164,403 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 1,196,153 | 581,501 | 1,092,981 | |||||||||
Net asset value price per share* | $ | 20.51 | $ | 10.22 | $ | 9.30 | ||||||
Maximum sales charge - Class A shares | 5.75 | % | 4.75 | % | 2.00 | % | ||||||
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) per share - Class A shares | $ | 21.76 | $ | 10.73 | $ | 9.49 | ||||||
Pricing of Class C Shares | ||||||||||||
Net assets applicable to Class C shares | $ | 1,433,682 | $ | 2,562,075 | $ | 9,108,637 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 70,628 | 250,963 | 979,270 | |||||||||
Net asset value, offering price per share** | $ | 20.30 | $ | 10.21 | $ | 9.30 | ||||||
Pricing of Class Y Shares | ||||||||||||
Net assets applicable to Class Y shares | $ | 3,956,026 | $ | 41,749,396 | $ | 241,441,884 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 192,632 | 4,078,546 | 25,960,289 | |||||||||
Net asset value, offering price and redemption price per share | $ | 20.54 | $ | 10.24 | $ | 9.30 | ||||||
Pricing of Class Z Shares | ||||||||||||
Net assets applicable to Class Z shares | $ | — | $ | — | $ | 224,852,414 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | — | — | 24,172,070 | |||||||||
Net asset value, offering price and redemption price per share | $ | — | $ | — | $ | 9.30 | ||||||
Pricing of Institutional Class Shares | ||||||||||||
Net assets applicable to Institutional Class Shares | $ | 22,328,377 | $ | 149,192,418 | $ | 105,037,267 | ||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, $0.01 par value) | 1,087,829 | 14,577,368 | 11,298,318 | |||||||||
Net asset value, offering price and redemption price per share | $ | 20.53 | $ | 10.23 | $ | 9.30 |
* There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a $1 million or more subscription may be subject to a contingent deferred sales load if redeemed within a one-year period from the date of purchase.
** Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge.
See accompanying Notes to Financial Statements.
45 |
For the Six Months Ended March 31, 2016 (Unaudited)
Touchstone | Touchstone | Touchstone | ||||||||||||||
Touchstone | Emerging | Merger | Mid | |||||||||||||
Arbitrage | Markets Equity | Arbitrage | Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends(A) | $ | 1,262,665 | $ | 306,222 | $ | 1,862,216 | $ | 8,420,072 | ||||||||
Interest | 71,108 | — | 437,518 | — | ||||||||||||
Income from securities loaned | 3,048 | 4,278 | — | 16,793 | ||||||||||||
Total Investment Income | 1,336,821 | 310,500 | 2,299,734 | 8,436,865 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 611,399 | 348,286 | 1,070,282 | 2,761,656 | ||||||||||||
Administration fees | 84,431 | 48,234 | 147,801 | 509,754 | ||||||||||||
Compliance fees and expenses | 1,391 | 1,391 | 1,391 | 1,391 | ||||||||||||
Custody fees | 10,737 | 109,200 | 13,981 | 7,409 | ||||||||||||
Professional fees | 14,651 | 31,743 | 16,143 | 22,392 | ||||||||||||
Transfer Agent fees, Class A | 8,764 | 8,381 | 11,230 | 32,096 | ||||||||||||
Transfer Agent fees, Class C | 2,940 | 2,098 | 9,362 | 37,857 | ||||||||||||
Transfer Agent fees, Class Y | 38,427 | 23,784 | 39,437 | 296,945 | ||||||||||||
Transfer Agent fees, Class Z | — | — | — | 13,950 | ||||||||||||
Transfer Agent fees, Institutional Class | 37 | 16,220 | 2,109 | 9,320 | ||||||||||||
Registration Fees, Class A | 8,090 | 7,362 | 7,963 | 8,035 | ||||||||||||
Registration Fees, Class C | 2,234 | 5,093 | 4,636 | 9,014 | ||||||||||||
Registration Fees, Class Y | 8,625 | 7,464 | 8,165 | 22,447 | ||||||||||||
Registration Fees, Class Z | — | — | — | 7,421 | ||||||||||||
Registration Fees, Institutional Class | 468 | 6,734 | 4,687 | 4,021 | ||||||||||||
Dividend expense on securities sold short | 332,079 | — | 405,871 | — | ||||||||||||
Interest expense on securities sold short | 87,435 | — | 159,483 | — | ||||||||||||
Reports to Shareholders, Class A | 4,306 | 3,520 | 4,320 | 5,700 | ||||||||||||
Reports to Shareholders, Class C | 3,529 | 3,386 | 4,257 | 6,480 | ||||||||||||
Reports to Shareholders, Class Y | 7,426 | 6,044 | 8,581 | 33,036 | ||||||||||||
Reports to Shareholders, Class Z | — | — | — | 4,282 | ||||||||||||
Reports to Shareholders, Institutional Class | 3,179 | 3,521 | 3,502 | 3,442 | ||||||||||||
Shareholder servicing fees, Class Z | — | — | — | 26,744 | ||||||||||||
Distribution expenses, Class A | 11,903 | 3,402 | 25,859 | 74,389 | ||||||||||||
Distribution and shareholder servicing expenses, Class C | 44,448 | 6,267 | 89,446 | 306,948 | ||||||||||||
Trustee fees | 7,876 | 7,876 | 7,876 | 7,876 | ||||||||||||
Other expenses | 7,998 | 18,015 | 13,246 | 20,485 | ||||||||||||
Total Expenses | 1,302,373 | 668,021 | 2,059,628 | 4,233,090 | ||||||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (18,074 | ) | (205,650 | ) | (6,297 | ) | (371,904 | ) | ||||||||
Net Expenses | 1,284,299 | 462,371 | 2,053,331 | 3,861,186 | ||||||||||||
Net Investment Income (Loss) | 52,522 | (151,871 | ) | 246,403 | 4,575,679 | |||||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||||||
Net realized gains (losses) on investments | 2,843,642 | (47,425,383 | ) | 4,891,492 | 5,102,446 | |||||||||||
Net realized gains on foreign currency transactions | 66 | 99,371 | 70 | — | ||||||||||||
Net realized gains on written options | 157,041 | — | 275,757 | — | ||||||||||||
Net realized gains (losses) on securities sold short | 432,909 | — | (564,410 | ) | — | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | 3,750,398 | 56,612,875 | 2,969,454 | 24,786,605 | ||||||||||||
Net change in unrealized appreciation (depreciation) on foreign currency transactions | (276,571 | ) | 42,094 | (338,405 | ) | — | ||||||||||
Net change in unrealized appreciation (depreciation) on written options | 321,759 | — | 564,993 | — | ||||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | (2,076,631 | ) | — | (1,608,939 | ) | — | ||||||||||
Net Realized and Unrealized Gains (Losses) on Investments | 5,152,613 | 9,328,957 | 6,190,012 | 29,889,051 | ||||||||||||
Change in Net Assets Resulting from Operations | $ | 5,205,135 | $ | 9,177,086 | $ | 6,436,415 | $ | 34,464,730 | ||||||||
(A) Net of foreign tax withholding of: | $ | 3,535 | $ | 22,902 | $ | 1,333 | $ | — | ||||||||
(B) See Note 4 in Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
46 |
Statements of Operations (Unaudited) (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||
Mid Cap | Premium | Sands Capital | Touchstone | |||||||||||
Value | Yield Equity | Select Growth | Small Cap | |||||||||||
Fund | Fund | Fund | Fund | |||||||||||
$ | 3,448,115 | $ | 3,207,740 | $ | 5,663,006 | $ | 5,534,649 | |||||||
— | — | — | — | |||||||||||
14,888 | — | 617,669 | 76,119 | |||||||||||
3,463,003 | 3,207,740 | 6,280,675 | 5,610,768 | |||||||||||
1,362,351 | 517,842 | 12,990,917 | 2,796,920 | |||||||||||
242,395 | 109,942 | 3,322,699 | 477,122 | |||||||||||
1,391 | 1,391 | 1,391 | 1,391 | |||||||||||
6,005 | 3,432 | 40,057 | 7,166 | |||||||||||
15,014 | 12,518 | 96,234 | 21,363 | |||||||||||
6,653 | 19,489 | 101,800 | 43,232 | |||||||||||
1,414 | 13,489 | 70,858 | 10,615 | |||||||||||
123,505 | 53,479 | 1,397,775 | 167,742 | |||||||||||
— | — | 1,024,936 | — | |||||||||||
13,233 | — | — | 36,553 | |||||||||||
7,612 | 8,145 | 10,325 | 7,521 | |||||||||||
3,861 | 7,030 | 8,368 | 6,228 | |||||||||||
11,135 | 9,414 | 68,384 | 19,653 | |||||||||||
— | — | 18,003 | — | |||||||||||
7,573 | — | — | 10,724 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
3,712 | 5,012 | 11,815 | 5,381 | |||||||||||
3,290 | 4,552 | 10,150 | 4,349 | |||||||||||
18,026 | 9,592 | 139,112 | 10,974 | |||||||||||
— | — | 86,787 | — | |||||||||||
5,004 | — | — | 4,241 | |||||||||||
— | — | 1,433,111 | — | |||||||||||
9,720 | 37,312 | 262,993 | 68,762 | |||||||||||
9,867 | 143,859 | 785,228 | 97,195 | |||||||||||
7,876 | 7,876 | 7,876 | 7,876 | |||||||||||
17,258 | 9,617 | 106,225 | 20,756 | |||||||||||
1,876,895 | 973,991 | 21,995,044 | 3,825,764 | |||||||||||
(214,977 | ) | (72,824 | ) | (793,856 | ) | (52,533 | ) | |||||||
1,661,918 | 901,167 | 21,201,188 | 3,773,231 | |||||||||||
1,801,085 | 2,306,573 | (14,920,513 | ) | 1,837,537 | ||||||||||
2,769,848 | (2,689,358 | ) | 332,051,698 | (55,498,425 | ) | |||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
26,367,188 | 8,291,283 | (402,787,061 | ) | 78,969,686 | ||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
29,137,036 | 5,601,925 | (70,735,363 | ) | 23,471,261 | ||||||||||
$ | 30,938,121 | $ | 7,908,498 | $ | (85,655,876 | ) | $ | 25,308,798 | ||||||
$ | — | $ | 37,307 | $ | 19,049 | $ | 55 |
47 |
Statements of Operations (Unaudited) (Continued)
Touchstone Small Cap Value Fund | Touchstone Total Return Bond Fund | Touchstone Ultra Short Duration Fixed Income Fund | ||||||||||
Investment Income | ||||||||||||
Dividends(A) | $ | 845,365 | $ | 6,858 | $ | 505 | ||||||
Interest | — | 3,198,370 | 3,053,860 | |||||||||
Income from securities loaned | 22,929 | 361 | — | |||||||||
Total Investment Income | 868,294 | 3,205,589 | 3,054,365 | |||||||||
Expenses | ||||||||||||
Investment advisory fees | 237,528 | 336,038 | 699,080 | |||||||||
Administration fees | 38,268 | 139,216 | 405,463 | |||||||||
Compliance fees and expenses | 1,391 | 1,391 | 1,391 | |||||||||
Custody fees | 5,356 | 4,056 | 18,901 | |||||||||
Professional fees | 11,413 | 14,028 | 20,257 | |||||||||
Transfer Agent fees, Class A | 18,209 | 5,386 | 4,351 | |||||||||
Transfer Agent fees, Class C | 2,050 | 1,052 | 3,188 | |||||||||
Transfer Agent fees, Class Y | 4,711 | 13,310 | 80,186 | |||||||||
Transfer Agent fees, Class Z | — | — | 100,850 | |||||||||
Transfer Agent fees, Institutional Class | 102 | 32,474 | 3,050 | |||||||||
Registration Fees, Class A | 6,465 | 5,392 | 7,452 | |||||||||
Registration Fees, Class C | 3,707 | 4,004 | 9,835 | |||||||||
Registration Fees, Class Y | 3,536 | 12,825 | 11,218 | |||||||||
Registration Fees, Class Z | — | — | 11,895 | |||||||||
Registration Fees, Institutional Class | 2,241 | 9,406 | 6,532 | |||||||||
Reports to Shareholders, Class A | 5,210 | 3,423 | 3,517 | |||||||||
Reports to Shareholders, Class C | 3,365 | 3,281 | 3,447 | |||||||||
Reports to Shareholders, Class Y | 3,486 | 3,485 | 6,536 | |||||||||
Reports to Shareholders, Class Z | — | — | 16,768 | |||||||||
Reports to Shareholders, Institutional Class | 5,270 | 3,672 | 3,241 | |||||||||
Shareholder servicing fees, Class Z | — | — | 287,137 | |||||||||
Distribution expenses, Class A | 30,146 | 7,128 | 12,710 | |||||||||
Distribution and shareholder servicing expenses, Class C | 6,909 | 11,813 | 32,926 | |||||||||
Trustee fees | 7,876 | 7,876 | 7,876 | |||||||||
Other expenses | 9,593 | 18,733 | 52,671 | |||||||||
Total Expenses | 406,832 | 637,989 | 1,810,478 | |||||||||
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B) | (88,827 | ) | (106,276 | ) | (270,834 | ) | ||||||
Net Expenses | 318,005 | 531,713 | 1,539,644 | |||||||||
Net Investment Income | 550,289 | 2,673,876 | 1,514,721 | |||||||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||||||
Net realized gains (losses) on investments | (7,127,143 | ) | (251,700 | ) | 1,511,137 | |||||||
Net change in unrealized appreciation (depreciation) on investments | 9,986,646 | 1,120,016 | 33,570 | |||||||||
Net Realized and Unrealized Gains on Investments | 2,859,503 | 868,316 | 1,544,707 | |||||||||
Change in Net Assets Resulting from Operations | $ | 3,409,792 | $ | 3,542,192 | $ | 3,059,428 | ||||||
(A) Net of foreign tax withholding of: | $ | 976 | $ | — | $ | — | ||||||
(B) See Note 4 in Notes to Financial Statements. |
See accompanying Notes to Financial Statements.
48 |
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49 |
Statements of Changes in Net Assets
Touchstone | Touchstone | |||||||||||||||
Arbitrage | Emerging Markets | |||||||||||||||
Fund | Equity Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | For the | Six Months | For the | |||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
March 31, 2016 | September 30, | March 31, 2016 | September 30, | |||||||||||||
(Unaudited) | 2015 | (Unaudited) | 2015 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 52,522 | $ | (938,277 | ) | $ | (151,871 | ) | $ | 3,303,542 | ||||||
Net realized gains (losses) on investments, foreign currency transactions, written options and securities sold short | 3,433,658 | 1,964,712 | (47,326,012 | ) | (8,542,947 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on investments, foreign currency transactions, written options and securities sold short | 1,718,955 | 284,658 | 56,654,969 | (67,458,307 | ) | |||||||||||
Change in Net Assets from Operations | 5,205,135 | 1,311,093 | 9,177,086 | (72,697,712 | ) | |||||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (17,509 | ) | — | (188,269 | ) | (24,587 | ) | |||||||||
Net investment income, Class C | (6,332 | ) | — | (82,074 | ) | — | ||||||||||
Net investment income, Class Y | (287,174 | ) | — | (620,410 | ) | (871,078 | ) | |||||||||
Net investment income, Class Z | — | — | — | — | ||||||||||||
Net investment income, Institutional Class | (31,972 | ) | — | (1,728,009 | ) | (2,505,846 | ) | |||||||||
Net realized gains, Class A | (154,157 | ) | (33,828 | ) | — | — | ||||||||||
Net realized gains, Class C | (131,554 | ) | (16,826 | ) | — | — | ||||||||||
Net realized gains, Class Y | (1,293,949 | ) | (167,228 | ) | — | — | ||||||||||
Net realized gains, Institutional Class | (133,669 | ) | (70,593 | ) | — | — | ||||||||||
Total Distributions | (2,056,316 | ) | (288,475 | ) | (2,618,762 | ) | (3,401,511 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | (9,300,773 | ) | (72,683,275 | ) | (251,718,101 | ) | (12,246,077 | ) | ||||||||
Total Increase (Decrease) in Net Assets | (6,151,954 | ) | (71,660,657 | ) | (245,159,777 | ) | (88,345,300 | ) | ||||||||
Net Assets | ||||||||||||||||
Beginning of period | 125,528,799 | 197,189,456 | 259,494,979 | 347,840,279 | ||||||||||||
End of period | $ | 119,376,845 | $ | 125,528,799 | $ | 14,335,202 | $ | 259,494,979 | ||||||||
Accumulated Net Investment Income (Loss) | $ | (286,917 | ) | $ | 3,548 | $ | (201,663 | ) | $ | 2,568,970 |
(A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity in pages 56-59. |
See accompanying Notes to Financial Statements.
50 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Merger Arbitrage | Mid Cap | Mid Cap | ||||||||||||||||||||
Fund | Fund | Value Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | |||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||
March 31, 2016 | September 30, | March 31, 2016 | September 30, | March 31, 2016 | September 30, | |||||||||||||||||
(Unaudited) | 2015 | (Unaudited) | 2015 | (Unaudited) | 2015 | |||||||||||||||||
$ | 246,403 | $ | (2,534,206 | ) | $ | 4,575,679 | $ | 460,582 | $ | 1,801,085 | $ | 3,025,444 | ||||||||||
4,602,909 | 1,857,492 | 5,102,446 | 12,577,383 | 2,769,848 | 21,967,422 | |||||||||||||||||
1,587,103 | 4,479,870 | 24,786,605 | (49,885,177 | ) | 26,367,188 | (27,750,574 | ) | |||||||||||||||
6,436,415 | 3,803,156 | 34,464,730 | (36,847,212 | ) | 30,938,121 | (2,757,708 | ) | |||||||||||||||
— | — | — | — | (31,833 | ) | (48,181 | ) | |||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | (302,705 | ) | (609,061 | ) | (1,056,219 | ) | (1,725,242 | ) | |||||||||||||
— | — | (1,360 | ) | — | — | — | ||||||||||||||||
— | — | (61,198 | ) | (258,983 | ) | (716,414 | ) | (1,326,235 | ) | |||||||||||||
— | (270,079 | ) | — | — | (466,659 | ) | (376,327 | ) | ||||||||||||||
— | (136,421 | ) | — | — | (117,202 | ) | (76,516 | ) | ||||||||||||||
— | (654,494 | ) | — | — | (12,371,938 | ) | (7,781,541 | ) | ||||||||||||||
— | (505,070 | ) | — | — | (6,757,289 | ) | (5,200,105 | ) | ||||||||||||||
— | (1,566,064 | ) | (365,263 | ) | (868,044 | ) | (21,517,554 | ) | (16,534,147 | ) | ||||||||||||
(18,325,414 | ) | (220,660,915 | ) | (27,835,676 | ) | 292,015,815 | (2,872,798 | ) | (1,870,672 | ) | ||||||||||||
(11,888,999 | ) | (218,423,823 | ) | 6,263,791 | 254,300,559 | 6,547,769 | (21,162,527 | ) | ||||||||||||||
212,261,255 | 430,685,078 | 700,283,750 | 445,983,191 | 342,532,115 | 363,694,642 | |||||||||||||||||
$ | 200,372,256 | $ | 212,261,255 | $ | 706,547,541 | $ | 700,283,750 | $ | 349,079,884 | $ | 342,532,115 | |||||||||||
$ | (591,058 | ) | $ | (837,461 | ) | $ | 4,171,443 | $ | (38,973 | ) | $ | 77,458 | $ | 80,839 |
51 |
Statements of Changes in Net Assets (Continued)
Touchstone | ||||||||||||||||
Touchstone | Sands Capital | |||||||||||||||
Premium Yield | Select Growth | |||||||||||||||
Equity Fund | Fund | |||||||||||||||
For the | For the | |||||||||||||||
Six Months | For the | Six Months | For the | |||||||||||||
Ended | Year Ended | Ended | Year Ended | |||||||||||||
March 31, 2016 | September 30, | March 31, 2016 | September 30, | |||||||||||||
(Unaudited) | 2015 | (Unaudited) | 2015 | |||||||||||||
From Operations | ||||||||||||||||
Net investment income (loss) | $ | 2,306,573 | $ | 5,109,522 | $ | (14,920,513 | ) | $ | (30,444,851 | ) | ||||||
Net realized gain (losses) on investments | (2,689,358 | ) | 10,215,915 | 332,051,698 | 448,220,268 | |||||||||||
Net change in unrealized appreciation (depreciation) on investments | 8,291,283 | (36,402,981 | ) | (402,787,061 | ) | (606,231,963 | ) | |||||||||
Change in Net Assets from Operations | 7,908,498 | (21,077,544 | ) | (85,655,876 | ) | (188,456,546 | ) | |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income, Class A | (415,179 | ) | (1,240,585 | ) | — | — | ||||||||||
Net investment income, Class C | (295,899 | ) | (681,106 | ) | — | — | ||||||||||
Net investment income, Class Y | (1,412,903 | ) | (3,439,427 | ) | — | — | ||||||||||
Net investment income, Institutional Class | — | — | — | — | ||||||||||||
Net realized gains, Class A | (2,086,246 | ) | (2,197,270 | ) | (19,790,200 | ) | (14,093,187 | ) | ||||||||
Net realized gains, Class C | (2,029,563 | ) | (1,531,929 | ) | (15,311,943 | ) | (10,111,362 | ) | ||||||||
Net realized gains, Class Y | (6,140,759 | ) | (5,137,668 | ) | (278,000,457 | ) | (183,460,195 | ) | ||||||||
Net realized gains, Class Z | — | — | (112,244,362 | ) | (90,266,864 | ) | ||||||||||
Net realized gains, Institutional Class | — | — | — | — | ||||||||||||
Total Distributions | (12,380,549 | ) | (14,227,985 | ) | (425,346,962 | ) | (297,931,608 | ) | ||||||||
Net Increase (Decrease) from Share Transactions(A) | (22,420,467 | ) | 17,989,598 | (590,669,675 | ) | (897,050,296 | ) | |||||||||
Total Decrease in Net Assets | (26,892,518 | ) | (17,315,931 | ) | (1,101,672,513 | ) | (1,383,438,450 | ) | ||||||||
Net Assets | ||||||||||||||||
Beginning of period | 168,198,883 | 185,514,814 | 4,885,631,159 | 6,269,069,609 | ||||||||||||
End of period | $ | 141,306,365 | $ | 168,198,883 | $ | 3,783,958,646 | $ | 4,885,631,159 | ||||||||
Accumulated Net Investment Income (Loss) | $ | 346,329 | $ | 163,737 | $ | (36,536,400 | ) | $ | (21,615,887 | ) |
(A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 59-62. |
See accompanying Notes to Financial Statements.
52 |
Statements of Changes in Net Assets (Continued)
Touchstone | Touchstone | Touchstone | ||||||||||||||||||||
Small Cap | Small Cap | Total Return | ||||||||||||||||||||
Fund | Value Fund | Bond Fund | ||||||||||||||||||||
For the | For the | For the | ||||||||||||||||||||
Six Months | For the | Six Months | For the | Six Months | For the | |||||||||||||||||
Ended | Year Ended | Ended | Year Ended | Ended | Year Ended | |||||||||||||||||
March 31, 2016 | September 30, | March 31, 2016 | September 30, | March 31, 2016 | September 30, | |||||||||||||||||
(Unaudited) | 2015 | (Unaudited) | 2015 | (Unaudited) | 2015 | |||||||||||||||||
$ | 1,837,537 | $ | 7,960,852 | $ | 550,289 | $ | 1,208,039 | $ | 2,673,876 | $ | 4,225,533 | |||||||||||
(55,498,425 | ) | 83,192,630 | (7,127,143 | ) | 3,657,420 | (251,700 | ) | 656,088 | ||||||||||||||
78,969,686 | (141,878,468 | ) | 9,986,646 | (9,186,442 | ) | 1,120,016 | (786,185 | ) | ||||||||||||||
25,308,798 | (50,724,986 | ) | 3,409,792 | (4,320,983 | ) | 3,542,192 | 4,095,436 | |||||||||||||||
(459,982 | ) | (4,964 | ) | (243,462 | ) | (456,935 | ) | (75,212 | ) | (152,519 | ) | |||||||||||
(26,741 | ) | — | (8,492 | ) | (14,424 | ) | (22,509 | ) | (38,190 | ) | ||||||||||||
(3,110,979 | ) | (146,568 | ) | (46,300 | ) | (139,413 | ) | (599,940 | ) | (808,571 | ) | |||||||||||
(2,961,769 | ) | (212,904 | ) | (266,727 | ) | (583,324 | ) | (2,169,325 | ) | (4,108,293 | ) | |||||||||||
(6,403,253 | ) | (4,610,591 | ) | (865,953 | ) | (1,209,646 | ) | — | — | |||||||||||||
(2,276,849 | ) | (2,081,129 | ) | (49,306 | ) | (80,833 | ) | — | — | |||||||||||||
(33,435,598 | ) | (23,363,113 | ) | (150,398 | ) | (346,677 | ) | — | — | |||||||||||||
— | — | — | — | — | — | |||||||||||||||||
(29,370,263 | ) | (29,583,949 | ) | (792,853 | ) | (1,174,928 | ) | — | — | |||||||||||||
(78,045,434 | ) | (60,003,218 | ) | (2,423,491 | ) | (4,006,180 | ) | (2,866,986 | ) | (5,107,573 | ) | |||||||||||
(24,659,255 | ) | 40,547,715 | (5,180,043 | ) | (8,100,551 | ) | 16,027,961 | 41,178,974 | ||||||||||||||
(77,395,891 | ) | (70,180,489 | ) | (4,193,742 | ) | (16,427,714 | ) | 16,703,167 | 40,166,837 | |||||||||||||
719,823,863 | 790,004,352 | 56,441,845 | 72,869,559 | 182,745,369 | 142,578,532 | |||||||||||||||||
$ | 642,427,972 | $ | 719,823,863 | $ | 52,248,103 | $ | 56,441,845 | $ | 199,448,536 | $ | 182,745,369 | |||||||||||
$ | 1,837,451 | $ | 6,559,385 | $ | 24,995 | $ | 39,687 | $ | (160,177 | ) | $ | 32,933 |
53 |
Statements of Changes in Net Assets (Continued)
Touchstone | ||||||||
Ultra Short | ||||||||
Duration Fixed | ||||||||
Income Fund | ||||||||
For the | ||||||||
Six Months | For the | |||||||
Ended | Year Ended | |||||||
March 31, 2016 | September 30, | |||||||
(Unaudited) | 2015 | |||||||
From Operations | ||||||||
Net investment income | $ | 1,514,721 | $ | 3,959,419 | ||||
Net realized gains (losses) on investments | 1,511,137 | (68,741 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 33,570 | (1,301,049 | ) | |||||
Change in Net Assets from Operations | 3,059,428 | 2,589,629 | ||||||
Distributions to Shareholders from: | ||||||||
Net investment income, Class A | (71,090 | ) | (120,421 | ) | ||||
Net investment income, Class C | (40,658 | ) | (73,655 | ) | ||||
Net investment income, Class Y | (1,779,959 | ) | (3,184,693 | ) | ||||
Net investment income, Class Z | (1,617,964 | ) | (4,319,849 | ) | ||||
Net investment income, Institutional Class | (783,879 | ) | (801,753 | ) | ||||
Total Distributions | (4,293,550 | ) | (8,500,371 | ) | ||||
Net Increase (Decrease) from Share Transactions(A) | 18,474,413 | (140,181,440 | ) | |||||
Total Increase (Decrease) in Net Assets | 17,240,291 | (146,092,182 | ) | |||||
Net Assets | ||||||||
Beginning of period | 573,364,314 | 719,456,496 | ||||||
End of period | $ | 590,604,605 | $ | 573,364,314 | ||||
Accumulated Net Investment Income (Loss) | $ | (2,316,383 | ) | $ | 462,446 |
(A) | For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on page 63. |
See accompanying Notes to Financial Statements.
54 |
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55 |
Statements of Changes in Net Assets - Capital Stock Activity
Touchstone Arbitrage Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2016 | Ended | |||||||||||||||
(Unaudited) | September 30, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 145,278 | $ | 1,468,560 | 697,405 | $ | 6,923,936 | ||||||||||
Reinvestment of distributions | 17,214 | 171,656 | 3,414 | 33,622 | ||||||||||||
Cost of Shares redeemed | (1,490,004 | ) | (14,900,468 | ) | (920,226 | ) | (9,124,998 | ) | ||||||||
Change from Class A Share Transactions | (1,327,512 | ) | (13,260,252 | ) | (219,407 | ) | (2,167,440 | ) | ||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 162,809 | 1,604,155 | 237,911 | 2,335,338 | ||||||||||||
Reinvestment of distributions | 13,631 | 133,742 | 1,654 | 16,175 | ||||||||||||
Cost of Shares redeemed | (179,266 | ) | (1,774,027 | ) | (484,282 | ) | (4,756,438 | ) | ||||||||
Change from Class C Share Transactions | (2,826 | ) | (36,130 | ) | (244,717 | ) | (2,404,925 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 1,440,064 | 14,539,872 | 4,068,067 | 40,496,482 | ||||||||||||
Reinvestment of distributions | 155,458 | 1,559,811 | 16,744 | 165,594 | ||||||||||||
Cost of Shares redeemed | (1,160,811 | ) | (11,730,671 | ) | (7,205,496 | ) | (71,751,279 | ) | ||||||||
Change from Class Y Share Transactions | 434,711 | 4,369,012 | (3,120,685 | ) | (31,089,203 | ) | ||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 709,087 | 7,206,285 | 220,191 | 2,220,455 | ||||||||||||
Reinvestment of distributions | 16,462 | 165,641 | 7,123 | 70,593 | ||||||||||||
Cost of Shares redeemed | (763,052 | ) | (7,745,329 | ) | (3,968,913 | ) | (39,312,755 | ) | ||||||||
Change from Institutional Class Share Transactions | (37,503 | ) | (373,403 | ) | (3,741,599 | ) | (37,021,707 | ) | ||||||||
Change from Share Transactions | (933,130 | ) | $ | (9,300,773 | ) | (7,326,408 | ) | $ | (72,683,275 | ) |
See accompanying Notes to Financial Statements.
56 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Emerging Markets Equity Fund | Touchstone Merger Arbitrage Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2016 | Ended | March 31, 2016 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2015 | (Unaudited) | September 30, 2015 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
40,425 | $ | 338,108 | 186,600 | $ | 2,072,169 | 308,494 | $ | 3,294,634 | 317,995 | $ | 3,355,747 | |||||||||||||||||||
21,438 | 180,076 | 2,103 | 23,322 | — | — | 24,939 | 261,605 | |||||||||||||||||||||||
(94,672 | ) | (844,868 | ) | (313,089 | ) | (3,477,526 | ) | (515,583 | ) | (5,495,363 | ) | (7,506,278 | ) | (78,939,832 | ) | |||||||||||||||
(32,809 | ) | (326,684 | ) | (124,386 | ) | (1,382,035 | ) | (207,089 | ) | (2,200,729 | ) | (7,163,344 | ) | (75,322,480 | ) | |||||||||||||||
8,248 | 76,441 | 24,930 | 277,830 | 3,699 | 38,205 | 21,898 | 225,663 | |||||||||||||||||||||||
9,924 | 82,073 | — | — | — | — | 13,289 | 136,208 | |||||||||||||||||||||||
(69,142 | ) | (604,070 | ) | (101,198 | ) | (1,098,754 | ) | (226,330 | ) | (2,342,771 | ) | (1,671,980 | ) | (17,160,505 | ) | |||||||||||||||
(50,970 | ) | (445,556 | ) | (76,268 | ) | (820,924 | ) | (222,631 | ) | (2,304,566 | ) | (1,636,793 | ) | (16,798,634 | ) | |||||||||||||||
501,624 | 4,661,489 | 1,430,819 | 15,269,883 | 758,826 | 8,176,302 | 1,632,792 | 17,296,230 | |||||||||||||||||||||||
73,578 | 618,052 | 79,179 | 870,970 | — | — | 59,302 | 626,234 | |||||||||||||||||||||||
(7,518,548 | ) | (68,927,603 | ) | (2,896,992 | ) | (31,709,119 | ) | (1,316,064 | ) | (14,154,652 | ) | (10,245,967 | ) | (108,541,694 | ) | |||||||||||||||
(6,943,346 | ) | (63,648,062 | ) | (1,386,994 | ) | (15,568,266 | ) | (557,238 | ) | (5,978,350 | ) | (8,553,873 | ) | (90,619,230 | ) | |||||||||||||||
451,869 | 3,870,666 | 4,709,785 | 52,209,046 | 346,206 | 3,735,933 | 1,842,775 | 19,481,278 | |||||||||||||||||||||||
197,701 | 1,644,874 | 227,026 | 2,497,286 | — | — | 43,999 | 465,514 | |||||||||||||||||||||||
(20,431,188 | ) | (192,813,339 | ) | (4,751,637 | ) | (49,181,184 | ) | (1,071,347 | ) | (11,577,702 | ) | (5,434,586 | ) | (57,867,363 | ) | |||||||||||||||
(19,781,618 | ) | (187,297,799 | ) | 185,174 | 5,525,148 | (725,141 | ) | (7,841,769 | ) | (3,547,812 | ) | (37,920,571 | ) | |||||||||||||||||
(26,808,743 | ) | $ | (251,718,101 | ) | (1,402,474 | ) | $ | (12,246,077 | ) | (1,712,099 | ) | $ | (18,325,414 | ) | (20,901,822 | ) | $ | (220,660,915 | ) |
57 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Mid Cap Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2016 | Ended | |||||||||||||||
(Unaudited) | September 30, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 343,495 | $ | 8,081,676 | 1,699,189 | $ | 43,125,179 | ||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | (706,879 | ) | (16,055,722 | ) | (497,769 | ) | (12,575,317 | ) | ||||||||
Change from Class A Share Transactions | (363,384 | ) | (7,974,046 | ) | 1,201,420 | 30,549,862 | ||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 326,657 | 7,456,926 | 1,235,605 | 30,223,772 | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | (444,009 | ) | (9,973,064 | ) | (318,653 | ) | (7,658,547 | ) | ||||||||
Change from Class C Share Transactions | (117,352 | ) | (2,516,138 | ) | 916,952 | 22,565,225 | ||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 3,518,896 | 83,305,247 | 13,034,302 | 335,664,826 | ||||||||||||
Reinvestment of distributions | 9,377 | 226,837 | 14,093 | 358,948 | ||||||||||||
Cost of Shares redeemed | (3,964,758 | ) | (93,342,502 | ) | (3,623,295 | ) | (91,336,205 | ) | ||||||||
Change from Class Y Share Transactions | (436,485 | ) | (9,810,418 | ) | 9,425,100 | 244,687,569 | ||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | 532,864 | 12,714,633 | 794,664 | 19,940,900 | ||||||||||||
Reinvestment of distributions | 57 | 1,360 | — | — | ||||||||||||
Cost of Shares redeemed | (454,079 | ) | (10,178,185 | ) | (477,159 | ) | (11,756,957 | ) | ||||||||
Change from Class Z Share Transactions | 78,842 | 2,537,808 | 317,505 | 8,183,943 | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 429,069 | 10,436,140 | 443,808 | 11,248,537 | ||||||||||||
Reinvestment of distributions | 1,800 | 43,567 | 7,316 | 186,413 | ||||||||||||
Cost of Shares redeemed | (881,275 | ) | (20,552,589 | ) | (1,004,121 | ) | (25,405,734 | ) | ||||||||
Change from Institutional Class Share Transactions | (450,406 | ) | (10,072,882 | ) | (552,997 | ) | (13,970,784 | ) | ||||||||
Change from Share Transactions | (1,288,785 | ) | $ | (27,835,676 | ) | 11,307,980 | $ | 292,015,815 |
See accompanying Notes to Financial Statements.
58 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Mid Cap Value Fund | Touchstone Premium Yield Equity Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2016 | Ended | March 31, 2016 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2015 | (Unaudited) | September 30, 2015 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
47,384 | $ | 739,067 | 154,790 | $ | 2,609,534 | 593,356 | $ | 4,730,752 | 1,698,528 | $ | 16,405,724 | |||||||||||||||||||
31,527 | 480,370 | 24,707 | 405,472 | 292,844 | 2,220,381 | 334,440 | 3,162,900 | |||||||||||||||||||||||
(52,604 | ) | (807,993 | ) | (536,569 | ) | (9,007,319 | ) | (1,824,359 | ) | (14,771,183 | ) | (2,197,894 | ) | (20,728,402 | ) | |||||||||||||||
26,307 | 411,444 | (357,072 | ) | (5,992,313 | ) | (938,159 | ) | (7,820,050 | ) | (164,926 | ) | (1,159,778 | ) | |||||||||||||||||
47,025 | 730,567 | 33,065 | 553,321 | 152,603 | 1,242,771 | 1,092,280 | 10,483,333 | |||||||||||||||||||||||
7,245 | 108,313 | 4,467 | 72,235 | 275,603 | 2,081,791 | 202,879 | 1,912,977 | |||||||||||||||||||||||
(25,345 | ) | (384,914 | ) | (46,335 | ) | (771,881 | ) | (897,328 | ) | (6,992,259 | ) | (620,690 | ) | (5,816,648 | ) | |||||||||||||||
28,925 | 453,966 | (8,803 | ) | (146,325 | ) | (469,122 | ) | (3,667,697 | ) | 674,469 | 6,579,662 | |||||||||||||||||||
817,799 | 12,642,053 | 3,429,721 | 58,072,725 | — | — | — | — | |||||||||||||||||||||||
863,509 | 13,227,016 | 565,498 | 9,334,998 | — | — | — | — | |||||||||||||||||||||||
(1,769,574 | ) | (27,436,974 | ) | (3,569,354 | ) | (60,449,696 | ) | — | — | — | — | |||||||||||||||||||
(88,266 | ) | (1,567,905 | ) | 425,865 | 6,958,027 | — | — | — | — | |||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
1,635,762 | 25,312,972 | 2,461,723 | 41,633,362 | 3,025,491 | 24,129,172 | 5,230,685 | 49,314,434 | |||||||||||||||||||||||
272,688 | 4,199,031 | 269,644 | 4,472,681 | 921,138 | 6,981,529 | 809,706 | 7,630,116 | |||||||||||||||||||||||
(1,956,394 | ) | (31,682,306 | ) | (2,879,594 | ) | (48,796,104 | ) | (5,227,548 | ) | (42,043,421 | ) | (4,787,404 | ) | (44,374,836 | ) | |||||||||||||||
(47,944 | ) | (2,170,303 | ) | (148,227 | ) | (2,690,061 | ) | (1,280,919 | ) | (10,932,720 | ) | 1,252,987 | 12,569,714 | |||||||||||||||||
(80,978 | ) | $ | (2,872,798 | ) | (88,237 | ) | $ | (1,870,672 | ) | (2,688,200 | ) | $ | (22,420,467 | ) | 1,762,530 | $ | 17,989,598 |
59 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Sands Capital Select Growth Fund | ||||||||||||||||
For the Six Months | ||||||||||||||||
Ended | For the Year | |||||||||||||||
March 31, 2016 | Ended | |||||||||||||||
(Unaudited) | September 30, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 1,160,515 | $ | 18,129,759 | 3,641,024 | $ | 65,559,498 | ||||||||||
Reinvestment of distributions | 1,013,500 | 16,469,382 | 632,172 | 11,233,693 | ||||||||||||
Cost of Shares redeemed | (4,562,433 | ) | (71,818,876 | ) | (6,220,356 | ) | (111,540,350 | ) | ||||||||
Change from Class A Share Transactions | (2,388,418 | ) | (37,219,735 | ) | (1,947,160 | ) | (34,747,159 | ) | ||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 273,967 | 4,262,820 | 517,357 | 8,977,978 | ||||||||||||
Reinvestment of distributions | 719,512 | 11,188,418 | 427,832 | 7,358,711 | ||||||||||||
Cost of Shares redeemed | (1,546,284 | ) | (22,754,648 | ) | (2,219,652 | ) | (38,545,926 | ) | ||||||||
Change from Class C Share Transactions | (552,805 | ) | (7,303,410 | ) | (1,274,463 | ) | (22,209,237 | ) | ||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 17,716,056 | 282,953,280 | 59,278,345 | 1,111,054,923 | ||||||||||||
Reinvestment of distributions | 11,303,724 | 189,677,066 | 6,959,585 | 127,012,426 | ||||||||||||
Cost of Shares redeemed | (50,598,217 | ) | (799,232,168 | ) | (64,334,704 | ) | (1,186,531,629 | ) | ||||||||
Change from Class Y Share Transactions | (21,578,437 | ) | (326,601,822 | ) | 1,903,226 | 51,535,720 | ||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | 4,062,251 | 64,441,020 | 13,122,014 | 236,143,567 | ||||||||||||
Reinvestment of distributions | 6,855,766 | 111,406,290 | 5,044,388 | 89,638,768 | ||||||||||||
Cost of Shares redeemed | (25,681,647 | ) | (395,392,018 | ) | (66,561,196 | ) | (1,217,411,955 | ) | ||||||||
Change from Class Z Share Transactions | (14,763,630 | ) | (219,544,708 | ) | (48,394,794 | ) | (891,629,620 | ) | ||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change from Institutional Class Share Transactions | — | — | — | — | ||||||||||||
Change from Share Transactions | (39,283,290 | ) | $ | (590,669,675 | ) | (49,713,191 | ) | $ | (897,050,296 | ) |
See accompanying Notes to Financial Statements.
60 |
Statements of Changes in Net Assets - Capital Stock Activity (Continued)
Touchstone Small Cap Fund | Touchstone Small Cap Value Fund | |||||||||||||||||||||||||||||
For the Six Months | For the Six Months | |||||||||||||||||||||||||||||
Ended | For the Year | Ended | For the Year | |||||||||||||||||||||||||||
March 31, 2016 | Ended | March 31, 2016 | Ended | |||||||||||||||||||||||||||
(Unaudited) | September 30, 2015 | (Unaudited) | September 30, 2015 | |||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||
226,302 | $ | 3,676,790 | 1,922,057 | $ | 37,461,873 | 23,483 | $ | 469,464 | 39,094 | $ | 943,019 | |||||||||||||||||||
407,403 | 6,419,574 | 225,866 | 4,210,298 | 53,968 | 1,066,512 | 68,652 | 1,602,761 | |||||||||||||||||||||||
(1,076,246 | ) | (17,468,511 | ) | (1,559,188 | ) | (31,246,980 | ) | (103,596 | ) | (2,041,633 | ) | (253,395 | ) | (6,025,281 | ) | |||||||||||||||
(442,541 | ) | (7,372,147 | ) | 588,735 | 10,425,191 | (26,145 | ) | (505,657 | ) | (145,649 | ) | (3,479,501 | ) | |||||||||||||||||
18,802 | 292,695 | 48,757 | 913,444 | 5,567 | 109,534 | 8,200 | 194,538 | |||||||||||||||||||||||
137,154 | 2,078,131 | 100,136 | 1,817,469 | 1,912 | 37,294 | 2,405 | 55,586 | |||||||||||||||||||||||
(260,721 | ) | (4,106,362 | ) | (242,220 | ) | (4,700,467 | ) | (6,716 | ) | (134,684 | ) | (35,009 | ) | (814,026 | ) | |||||||||||||||
(104,765 | ) | (1,735,536 | ) | (93,327 | ) | (1,969,554 | ) | 763 | 12,144 | (24,404 | ) | (563,902 | ) | |||||||||||||||||
4,464,882 | 68,220,554 | 6,507,540 | 132,883,759 | 10,212 | 202,796 | 32,469 | 756,310 | |||||||||||||||||||||||
2,083,885 | 33,271,220 | 874,337 | 16,458,603 | 8,030 | 158,741 | 17,660 | 413,841 | |||||||||||||||||||||||
(6,223,806 | ) | (101,910,606 | ) | (3,686,636 | ) | (73,725,190 | ) | (44,354 | ) | (866,959 | ) | (222,703 | ) | (5,207,182 | ) | |||||||||||||||
324,961 | (418,832 | ) | 3,695,241 | 75,617,172 | (26,112 | ) | (505,422 | ) | (172,574 | ) | (4,037,031 | ) | ||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
4,113,859 | 66,092,168 | 5,353,309 | 107,676,224 | 84,824 | 1,661,289 | 181,436 | 4,287,336 | |||||||||||||||||||||||
1,130,473 | 18,036,138 | 978,565 | 18,399,911 | 53,498 | 1,059,580 | 75,308 | 1,758,252 | |||||||||||||||||||||||
(5,832,854 | ) | (99,261,046 | ) | (8,489,308 | ) | (169,601,229 | ) | (336,579 | ) | (6,901,977 | ) | (254,262 | ) | (6,065,705 | ) | |||||||||||||||
(588,522 | ) | (15,132,740 | ) | (2,157,434 | ) | (43,525,094 | ) | (198,257 | ) | (4,181,108 | ) | 2,482 | (20,117 | ) | ||||||||||||||||
(810,867 | ) | $ | (24,659,255 | ) | 2,033,215 | $ | 40,547,715 | (249,751 | ) | $ | (5,180,043 | ) | (340,145 | ) | $ | (8,100,551 | ) |
61 |
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, 2016 | Ended | |||||||||||||||
(Unaudited) | September 30, 2015 | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A | ||||||||||||||||
Proceeds from Shares issued | 96,926 | $ | 981,791 | 464,998 | $ | 4,794,879 | ||||||||||
Reinvestment of distributions | 5,396 | 54,579 | 12,299 | 126,552 | ||||||||||||
Cost of Shares redeemed | (84,979 | ) | (860,170 | ) | (416,177 | ) | (4,311,114 | ) | ||||||||
Change from Class A Share Transactions | 17,343 | 176,200 | 61,120 | 610,317 | ||||||||||||
Class C | ||||||||||||||||
Proceeds from Shares issued | 100,684 | 1,018,500 | 120,723 | 1,244,614 | ||||||||||||
Reinvestment of distributions | 1,641 | 16,580 | 2,936 | 30,186 | ||||||||||||
Cost of Shares redeemed | (84,039 | ) | (851,678 | ) | (50,965 | ) | (526,214 | ) | ||||||||
Change from Class C Share Transactions | 18,286 | 183,402 | 72,694 | 748,586 | ||||||||||||
Class Y | ||||||||||||||||
Proceeds from Shares issued | 672,903 | 6,842,901 | 4,023,444 | 41,258,943 | ||||||||||||
Reinvestment of distributions | 38,840 | 393,321 | 53,383 | 549,588 | ||||||||||||
Cost of Shares redeemed | (528,709 | ) | (5,363,528 | ) | (2,075,281 | ) | (21,366,189 | ) | ||||||||
Change from Class Y Share Transactions | 183,034 | 1,872,694 | 2,001,546 | 20,442,342 | ||||||||||||
Class Z | ||||||||||||||||
Proceeds from Shares issued | — | — | — | — | ||||||||||||
Reinvestment of distributions | — | — | — | — | ||||||||||||
Cost of Shares redeemed | — | — | — | — | ||||||||||||
Change from Class Z Share Transactions | — | — | — | — | ||||||||||||
Institutional Class | ||||||||||||||||
Proceeds from Shares issued | 3,715,175 | 37,691,753 | 5,199,931 | 53,765,978 | ||||||||||||
Reinvestment of distributions | 204,176 | 2,067,199 | 392,536 | 4,041,700 | ||||||||||||
Cost of Shares redeemed | (2,561,862 | ) | (25,963,287 | ) | (3,744,321 | ) | (38,429,949 | ) | ||||||||
Change from Institutional Class Share Transactions | 1,357,489 | 13,795,665 | 1,848,146 | 19,377,729 | ||||||||||||
Change from Share Transactions | 1,576,152 | $ | 16,027,961 | 3,983,506 | $ | 41,178,974 |
See accompanying Notes to Financial Statements.
62 |
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, 2016 | Ended | |||||||||||||
(Unaudited) | September 30, 2015 | |||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||
326,798 | $ | 3,039,463 | 527,290 | $ | 4,935,752 | |||||||||
6,530 | 60,727 | 10,396 | 97,320 | |||||||||||
(385,565 | ) | (3,587,820 | ) | (518,482 | ) | (4,862,453 | ) | |||||||
(52,237 | ) | (487,630 | ) | 19,204 | 170,619 | |||||||||
351,053 | 3,266,104 | 243,405 | 2,278,894 | |||||||||||
2,866 | 26,651 | 5,658 | 52,983 | |||||||||||
(263,887 | ) | (2,455,294 | ) | (557,428 | ) | (5,221,331 | ) | |||||||
90,032 | 837,461 | (308,365 | ) | (2,889,454 | ) | |||||||||
9,828,266 | 91,431,942 | 9,248,000 | 86,579,336 | |||||||||||
121,807 | 1,132,749 | 192,324 | 1,800,488 | |||||||||||
(5,493,301 | ) | (51,105,910 | ) | (13,958,645 | ) | (130,807,171 | ) | |||||||
4,456,772 | 41,458,781 | (4,518,321 | ) | (42,427,347 | ) | |||||||||
5,206,596 | 48,435,711 | 14,410,836 | 134,971,031 | |||||||||||
171,743 | 1,597,368 | 456,110 | 4,270,605 | |||||||||||
(13,873,455 | ) | (129,208,385 | ) | (24,898,995 | ) | (233,301,872 | ) | |||||||
(8,495,116 | ) | (79,175,306 | ) | (10,032,049 | ) | (94,060,236 | ) | |||||||
12,816,006 | 119,332,344 | 3,274,706 | 30,697,794 | |||||||||||
73,031 | 679,266 | 64,983 | 608,313 | |||||||||||
(6,889,410 | ) | (64,170,503 | ) | (3,445,073 | ) | (32,281,129 | ) | |||||||
5,999,627 | 55,841,107 | (105,384 | ) | (975,022 | ) | |||||||||
1,999,078 | $ | 18,474,413 | (14,944,915 | ) | $ | (140,181,440 | ) |
63 |
Touchstone Arbitrage Fund—Class A | ||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, 2016 | Year Ended September 30, | |||||||||||
(Unaudited) | 2015 | 2014(A) | ||||||||||
Net asset value at beginning of period | $ | 9.93 | $ | 9.87 | $ | 10.00 | ||||||
Income (loss) from investments operations: | ||||||||||||
Net investment loss | (0.01 | )(B) | (0.08 | )(B) | (0.10 | )(B) | ||||||
Net realized and unrealized gains (losses) on investments | 0.44 | 0.16 | (0.03 | ) | ||||||||
Total from investment operations | 0.43 | 0.08 | (0.13 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.02 | ) | — | — | ||||||||
Realized capital gains | (0.15 | ) | (0.02 | ) | — | |||||||
Total distributions | (0.17 | ) | (0.02 | ) | — | |||||||
Net asset value at end of period | $ | 10.19 | $ | 9.93 | $ | 9.87 | ||||||
Total return(C) | 4.38 | %(D) | 0.77 | % | (130 | )% | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000’s) | $ | 7,692 | $ | 20,672 | $ | 22,725 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(E) | 2.40 | %(F) | 2.42 | % | 2.51 | % | ||||||
Gross expenses (including dividend and interest expense on securities sold short)(G) | 2.68 | %(F) | 2.44 | % | 2.51 | % | ||||||
Net investment loss | (0.10 | )%(F) | (0.83 | )% | (1.01 | )% | ||||||
Portfolio turnover rate | 201 | %(D) | 276 | % | 293 | % |
Touchstone Arbitrage Fund—Class C | ||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||
Six Months | ||||||||||||
Ended | ||||||||||||
March 31, 2016 | Year Ended September 30, | |||||||||||
(Unaudited) | 2015 | 2014(A) | ||||||||||
Net asset value at beginning of period | $ | 9.80 | $ | 9.82 | $ | 10.00 | ||||||
Income (loss) from investments operations: | ||||||||||||
Net investments loss | (0.04 | )(B) | (0.15 | )(B) | (0.17 | )(B) | ||||||
Net realized and unrealized gains (losses) on investments | 0.43 | 0.15 | (0.01 | ) | ||||||||
Total from investment operations | 0.39 | — | (0.18 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.01 | ) | — | — | ||||||||
Realized capital gains | (0.15 | ) | (0.02 | ) | — | |||||||
Total distributions | (0.16 | ) | (0.02 | ) | — | |||||||
Net asset value at end of period | $ | 10.03 | $ | 9.80 | $ | 9.82 | ||||||
Total return(C) | 3.98 | %(D) | (0.05 | )% | (1.80 | )% | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000’s) | $ | 8,872 | $ | 8,694 | $ | 11,113 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(E) | 3.15 | %(F) | 3.14 | % | 3.27 | % | ||||||
Gross expenses (including dividend and interest expense on securities sold short)(G) | 3.18 | %(F) | 3.14 | % | 3.29 | % | ||||||
Net investment loss | (0.86 | )%(F) | (1.55 | )% | (1.77 | )% | ||||||
Portfolio turnover rate | 201 | %(D) | 276 | % | 293 | % |
(A) | Represents the period from commencement of operations (October 1, 2013) through September 30, 2014. |
(B) | The net investment loss per share is based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.68%, 1.68% and 1.67% and for Class C is 2.43%, 2.40% and 2.43% for the six months ended March 31, 2016 and years ended September 30, 2015 and 2014, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.96%, 1.70% and 1.67% and for Class C is 2.46%, 2.40% and 2.45% for the six months ended March 31, 2016 and years ended September 30, 2015 and 2014, respectively. |
See accompanying Notes to Financial Statements.
64 |
Financial Highlights (Continued)
Touchstone Arbitrage Fund—Class Y | ||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||
Six Months Ended | ||||||||||||
March 31, 2016 | Year Ended September 30, | |||||||||||
(Unaudited) | 2015 | 2014(A) | ||||||||||
Net asset value at beginning of period | $ | 9.99 | $ | 9.91 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.01 | (B) | (0.05 | )(B) | (0.07 | )(B) | ||||||
Net realized and unrealized gains (losses) on investments | 0.44 | 0.15 | (0.02 | ) | ||||||||
Total from investment operations | 0.45 | 0.10 | (0.09 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.03 | ) | — | — | ||||||||
Realized capital gains | (0.15 | ) | (0.02 | ) | — | |||||||
Total distributions | (0.18 | ) | (0.02 | ) | — | |||||||
Net asset value at end of period | $ | 10.26 | $ | 9.99 | $ | 9.91 | ||||||
Total return | 4.57 | %(C) | 0.97 | % | (0.90 | )% | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000’s) | $ | 94,226 | $ | 87,427 | $ | 117,589 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(D) | 2.11 | %(E) | 2.10 | % | 2.19 | % | ||||||
Gross expenses (including dividend and interest expense on securities sold short(F) | 2.11 | %(E) | 2.10 | % | 2.19 | % | ||||||
Net investment income (loss) | 0.19 | %(E) | (0.51 | )% | (0.69 | )% | ||||||
Portfolio turnover rate | 201 | %(C) | 276 | % | 293 | % |
Touchstone Arbitrage Fund—Institutional Class | ||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||
Six Months Ended | ||||||||||||
March 31, 2016 | Year Ended September 30, | |||||||||||
(Unaudited) | 2015 | 2014(A) | ||||||||||
Net asset value at beginning of period | $ | 10.01 | $ | 9.92 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.01 | (B) | (0.04 | )(B) | (0.06 | )(B) | ||||||
Net realized and unrealized gains (losses) on investments | 0.46 | 0.15 | (0.02 | ) | ||||||||
Total from investment operations | 0.47 | 0.11 | (0.08 | ) | ||||||||
Distributions from: | ||||||||||||
Net investment income | (0.04 | ) | — | — | ||||||||
Realized capital gains | (0.15 | ) | (0.02 | ) | — | |||||||
Total distributions | (0.19 | ) | (0.02 | ) | — | |||||||
Net asset value at end of period | $ | 10.29 | $ | 10.01 | $ | 9.92 | ||||||
Total return | 4.69 | %(C) | 1.06 | % | (0.80 | )% | ||||||
Ratios and supplemental data: | ||||||||||||
Net assets at end of period (000’s) | $ | 8,587 | $ | 8,735 | $ | 47,763 | ||||||
Ratio to average net assets: | ||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(D) | 2.00 | %(E) | 2.02 | % | 2.12 | % | ||||||
Gross expenses (including dividend and interest expense on securities sold short)(F) | 2.07 | %(E) | 2.03 | % | 2.12 | % | ||||||
Net investment income (loss) | 0.29 | %(E) | (0.43 | )% | (0.62 | )% | ||||||
Portfolio turnover rate | 201 | %(C) | 276 | % | 293 | % |
(A) | Represents the period from commencement of operations (October 1, 2013) through September 30, 2014. |
(B) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(C) | Not annualized. |
(D) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 1.39%, 1.36% and 1.35% and for Institutional Class is 1.28%, 1.28% and 1.28% for the six months ended March 31, 2016 and years ended September 30, 2015 and 2014, respectively. |
(E) | Annualized. |
(F) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 1.39%, 1.36% and 1.35% and for Institutional Class is 1.35%, 1.29% and 1.28% for the six months ended March 31, 2016 and years ended September 30, 2015 and 2014, respectively. |
See accompanying Notes to Financial Statements.
65 |
Financial Highlights (Continued)
Touchstone Emerging Markets Equity Fund—Class A | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.15 | $ | 11.67 | $ | 11.52 | $ | 12.24 | $ | 10.69 | $ | 12.68 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.03 | )(A) | 0.07 | (A) | 0.09 | (A) | 0.09 | (A) | 0.11 | 0.10 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | (2.53 | ) | 0.09 | (0.80 | ) | 1.68 | (2.05 | ) | |||||||||||||||
Total from investment operations | 0.04 | (2.46 | ) | 0.18 | (0.71 | ) | 1.79 | (1.95 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.70 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
Realized capital gains | — | — | — | — | (0.09 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.70 | ) | (0.06 | ) | (0.03 | ) | (0.01 | ) | (0.24 | ) | (0.04 | ) | ||||||||||||
Net asset value at end of period | $ | 8.49 | $ | 9.15 | $ | 11.67 | $ | 11.52 | $ | 12.24 | $ | 10.69 | ||||||||||||
Total return(B) | 0.54 | %(C) | (21.18 | )% | 1.61 | % | (5.69 | )% | 16.71 | % | (15.45 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 2,526 | $ | 3,022 | $ | 5,307 | $ | 9,843 | $ | 34,369 | $ | 26,592 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.69 | %(D) | 1.69 | % | 1.69 | % | 1.69 | % | 1.72 | % | 1.74 | % | ||||||||||||
Gross expenses | 3.36 | %(D) | 2.41 | % | 2.20 | % | 1.93 | % | 1.99 | % | 1.95 | % | ||||||||||||
Net investment (loss) | (0.76 | )%(D) | 0.66 | % | 0.75 | % | 0.71 | % | 0.94 | % | 0.98 | % | ||||||||||||
Portfolio turnover rate | 17 | %(C) | 28 | % | 38 | % | 25 | % | 33 | %(E) | 18 | % |
Touchstone Emerging Markets Equity Fund—Class C | ||||||||||||||||||||||||
Selected Data for a Snare Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.94 | $ | 11.43 | $ | 11.33 | $ | 12.13 | $ | 10.54 | $ | 12.58 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.06 | )(A) | (0.01 | )(A) | (— | )(A)(F) | (— | )(A)(F) | 0.04 | 0.03 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | (2.48 | ) | 0.10 | (0.80 | ) | 1.64 | (2.05 | ) | |||||||||||||||
Total from investment operations | 0.01 | (2.49 | ) | 0.10 | (0.80 | ) | 1.68 | (2.02 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.60 | ) | — | — | — | — | (F) | — | ||||||||||||||||
Realized capital gains | — | — | — | — | (0.09 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.60 | ) | — | — | — | (0.09 | ) | (0.02 | ) | |||||||||||||||
Net asset value at end of period | $ | 8.35 | $ | 8.94 | $ | 11.43 | $ | 11.33 | $ | 12.13 | $ | 10.54 | ||||||||||||
Total return(B) | 0.18 | %(C) | (21.79 | )% | 0.88 | % | (6.44 | )% | 15.84 | % | (16.07 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 1,037 | $ | 1,566 | $ | 2,874 | $ | 3,719 | $ | 4,903 | $ | 5,417 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.44 | %(D) | 2.44 | % | 2.44 | % | 2.44 | % | 2.47 | % | 2.49 | % | ||||||||||||
Gross expenses | 4.39 | %(D) | 3.19 | % | 3.03 | % | 2.84 | % | 2.85 | % | 2.82 | % | ||||||||||||
Net investment income (loss) | (1.51 | )%(D) | (0.09 | )% | (0.00 | )%(F) | (0.04 | )% | 0.19 | % | 0.21 | % | ||||||||||||
Portfolio turnover rate | 17 | %(C) | 28 | % | 38 | % | 25 | % | 33 | %(E) | 18 | % |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(B) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of the Touchstone Emerging Markets Equity Fund II acquired on September 17, 2012. If these transactions were included, portfolio turnover would have been higher. |
(F) | Less than $0.005 per share or 0.005%. |
See accompanying Notes to Financial Statements.
66 |
Financial Highlights (Continued)
Touchstone Emerging Markets Equity Fund—Class Y | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.10 | $ | 11.63 | $ | 11.54 | $ | 12.27 | $ | 10.74 | $ | 12.72 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.02 | )(A) | 0.10 | (A) | 0.12 | (A) | 0.13 | (A) | 0.14 | 0.11 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | (2.52 | ) | 0.10 | (0.81 | ) | 1.70 | (2.05 | ) | |||||||||||||||
Total from investment operations | 0.05 | (2.42 | ) | 0.22 | (0.68 | ) | 1.84 | (1.94 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.65 | ) | (0.11 | ) | (0.13 | ) | (0.05 | ) | (0.22 | ) | (0.02 | ) | ||||||||||||
Realized capital gains | — | — | — | — | (0.09 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.65 | ) | (0.11 | ) | (0.13 | ) | (0.05 | ) | (0.31 | ) | (0.04 | ) | ||||||||||||
Net asset value at end of period | $ | 8.50 | $ | 9.10 | $ | 11.63 | $ | 11.54 | $ | 12.27 | $ | 10.74 | ||||||||||||
Total return | 0.65 | %(B) | (20.98 | )% | 1.99 | % | (5.45 | )% | 17.12 | % | (15.21 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 6,430 | $ | 70,066 | $ | 105,641 | $ | 138,451 | $ | 219,717 | $ | 151,532 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.44 | %(C) | 1.40 | % | 1.38 | % | 1.37 | % | 1.41 | % | 1.48 | % | ||||||||||||
Gross expenses | 1.97 | %(C) | 1.40 | % | 1.38 | % | 1.35 | % | 1.44 | % | 1.48 | % | ||||||||||||
Net investment income (loss) | (0.51 | )%(C) | 0.95 | % | 1.06 | % | 1.04 | % | 1.25 | % | 1.50 | % | ||||||||||||
Portfolio turnover rate | 17 | %(B) | 28 | % | 38 | % | 25 | % | 33 | %(D) | 18 | % |
Touchstone Emerging Markets Equity Fund—Institutional Class | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.11 | $ | 11.64 | $ | 11.55 | $ | 12.28 | $ | 10.76 | $ | 12.74 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.02 | )(A) | 0.12 | (A) | 0.13 | (A) | 0.14 | (A) | 0.18 | 0.13 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.07 | (2.53 | ) | 0.11 | (0.81 | ) | 1.67 | (2.06 | ) | |||||||||||||||
Total from investment operations | 0.05 | (2.41 | ) | 0.24 | (0.67 | ) | 1.85 | (1.93 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.74 | ) | (0.12 | ) | (0.15 | ) | (0.06 | ) | (0.24 | ) | (0.03 | ) | ||||||||||||
Realized capital gains | — | — | — | — | (0.09 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.74 | ) | (0.12 | ) | (0.15 | ) | (0.06 | ) | (0.33 | ) | (0.05 | ) | ||||||||||||
Net asset value at end of period | $ | 8.42 | $ | 9.11 | $ | 11.64 | $ | 11.55 | $ | 12.28 | $ | 10.76 | ||||||||||||
Total return | 0.71 | %(B) | (20.87 | )% | 2.13 | % | (5.43 | )% | 17.28 | % | (15.18 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 4,342 | $ | 184,841 | $ | 234,019 | $ | 218,523 | $ | 271,186 | $ | 244,657 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1. 29 | %(C) | 1.29 | % | 1.29 | % | 1.29 | % | 1.32 | % | 1.34 | % | ||||||||||||
Gross expenses | 1.85 | %(C) | 1.33 | % | 1.31 | % | 1.29 | % | 1.37 | % | 1.43 | % | ||||||||||||
Net investment income (loss) | (0.36 | )%(C) | 1.06 | % | 1.15 | % | 1.11 | % | 1.34 | % | 1.51 | % | ||||||||||||
Portfolio turnover rate | 17 | %(B) | 28 | % | 38 | % | 25 | % | 33 | %(D) | 18 | % |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of the Touchstone Emerging Markets Equity Fund II acquired on September 17, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
67 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Class A | ||||||||||||||||||||||||
Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, 2016 | Year Ended September 30, | September 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.54 | $ | 10.49 | $ | 11.05 | $ | 10.65 | $ | 10.02 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | — | (B)(C) | (0.1 1 | )(B) | (0.13 | )(B) | 0.07 | (B) | (0.09 | )(B) | — | (C) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.32 | 0.21 | (0.05 | ) | 0.44 | 0.73 | 0.02 | |||||||||||||||||
Total from investment operations | 0.32 | 0.10 | (0.18 | ) | 0.51 | 0.64 | 0.02 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.05 | ) | — | (— | )(C) | — | ||||||||||||||||
Realized capital gains | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Total distributions | — | (0.05 | ) | (0.38 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 10.86 | $ | 10.54 | $ | 10.49 | $ | 11.05 | $ | 10.65 | $ | 10.02 | ||||||||||||
Total return(D) | 3.04 | %(E) | 0.92 | % | (1.75 | )% | 4.84 | % | 6.35 | % | 0.30 | %(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 20,283 | $ | 21,858 | $ | 96,916 | $ | 275,858 | $ | 150,148 | $ | 260 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(F) | 2.23 | %(G) | 2.47 | % | 2.52 | % | 2.27 | % | 1.96 | % | 3 33 | %(G) | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(H) | 2.27 | %(G) | 2.47 | % | 2.52 | % | 2.27 | % | 1.97 | % | 28.67 | %(G) | ||||||||||||
Net investment income (loss) | 0.02 | %(G) | (0.99 | )% | (1.25 | )% | 0.65 | % | (0.90 | )% | (1.97 | )%(G) | ||||||||||||
Portfolio turnover rate | 154 | %(E) | 227 | % | 271 | % | 288 | % | 307 | % | 311 | %(E) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.68%, 1.60%, 1.57%, 1.64%, 1.65% and 1.69% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
(G) | Annualized. |
(H) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.72%, 1.60%, 1.57%, 1.64%, 1.66% and 27.03% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
See accompanying Notes to Financial Statements.
68 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Class C Selected Data for a Share Outstanding Throughout Each Period | ||||||||||||||||||||||||
Six Months Ended | Period Ended | |||||||||||||||||||||||
March 31, 2016 | Year Ended September 30, | September 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.22 | $ | 10.26 | $ | 10.85 | $ | 10.54 | $ | 10.01 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.4 | )(B) | (0.18 | )(B) | (0.22 | )(B) | (0.01 | )(B) | (0.17 | )(B) | (0.01 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.32 | 0.19 | (0.04 | ) | 0.43 | 0.71 | 0.02 | |||||||||||||||||
Total from investment operations | 0.28 | 0.01 | (0.26 | ) | 0.42 | 0.54 | 0.01 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | — | (— | )(C) | — | |||||||||||||||||
Realized capital gains | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Total distributions | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 10.50 | $ | 10.22 | $ | 10.26 | $ | 10.85 | $ | 10.54 | $ | 10.01 | ||||||||||||
Total return(D) | 2.74 | %(E) | 0.06 | % | (2.51 | )% | 3.93 | % | 5.56 | % | 0.10 | %(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 17,039 | $ | 18,868 | $ | 35,737 | $ | 50,001 | $ | 25,739 | $ | 254 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(F) | 2.98 | %(G) | 3.26 | % | 3.32 | % | 3.05 | % | 2.74 | % | 4.23 | %(G) | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(H) | 3.00 | %(G) | 3.26 | % | 3.32 | % | 3.05 | % | 2.75 | % | 29.58 | %(G) | ||||||||||||
Net investment loss | (0.73 | )%(G) | (1.79 | )% | (2.05 | )% | (0.13 | )% | (1.68 | )% | (2.74 | )%(G) | ||||||||||||
Portfolio turnover rate | 154 | %(E) | 227 | % | 271 | % | 288 | % | 307 | % | 311 | %(E) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | The net investment loss per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 2.43%, 2.39%, 2.37%, 2.42%, 2.43% and 2.43% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
(G) | Annualized. |
(H) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 2.45%, 2.39%, 2.37%, 2.42%, 2.44% and 27.78% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
See accompanying Notes to Financial Statements.
69 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months Ended March 31, 2016 | Year Ended September 30, | Period Ended September 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.62 | $ | 10.55 | $ | 11.10 | $ | 10.68 | $ | 10.02 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.02 | (B) | (0.08 | )(B) | (0.10 | )(B) | 0.10 | (B) | (0.07 | )(B) | (0.01 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.33 | 0.20 | (0.05 | ) | 0.43 | 0.74 | 0.03 | |||||||||||||||||
Total from investment operations | 0.35 | 0.12 | (0.15 | ) | 0.53 | 0.67 | 0.02 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.07 | ) | — | (— | )(c) | — | ||||||||||||||||
Realized capital gains | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Total distributions | — | (0.05 | ) | (0.40 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 10.97 | $ | 10.62 | $ | 10.55 | $ | 11.10 | $ | 10.68 | $ | 10.02 | ||||||||||||
Total return | 3.30 | %(D) | 1.10 | % | (1.41 | )% | 5.01 | % | 6.75 | % | 0.20 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 85,440 | $ | 88,677 | $ | 178,305 | $ | 192,095 | $ | 90,741 | $ | 1,160 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(E) | 1.93 | %(F) | 2.20 | % | 2.24 | % | 2.02 | % | 1.68 | % | 2.74 | %(F) | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(G) | 1.93 | %(F) | 2.20 | % | 2.24 | % | 2.01 | % | 1.70 | % | 8.22 | %(F) | ||||||||||||
Net investment income (loss) | 0.32 | %(F) | (0.73 | )% | (0.97 | )% | 0.90 | % | (0.62 | )% | (1.65 | )%(F) | ||||||||||||
Portfolio turnover rate | 154 | %(D) | 227 | % | 271 | % | 288 | % | 307 | % | 311 | %(D) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.38%, 1.33%, 1.29%, 1.39%, 1.37% and 1.43% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.38%, 1.33%,1.29%, 1.38%, 1.39% and 6.91% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
See accompanying Notes to Financial Statements.
70 |
Financial Highlights (Continued)
Touchstone Merger Arbitrage Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months Ended March 31, 2016 | Year Ended September 30, | Period Ended September 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.65 | $ | 10.57 | $ | 11.13 | $ | 10.69 | $ | 10.03 | $ | 10.00 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.02 | (B) | (0.07 | )(B) | (0.10 | )(B) | 0.11 | (B) | (0.06 | )(B) | (0.02 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 0.33 | 0.20 | (0.05 | ) | 0.44 | 0.73 | 0.05 | |||||||||||||||||
Total from investment operations | 0.35 | 0.13 | (0.15 | ) | 0.55 | 0.67 | 0.03 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.08 | ) | — | (— | )(C) | — | ||||||||||||||||
Realized capital gains | — | (0.05 | ) | (0.33 | ) | (0.11 | ) | (0.01 | ) | — | ||||||||||||||
Total distributions | — | (0.05 | ) | (0.41 | ) | (0.11 | ) | (0.01 | ) | |||||||||||||||
Net asset value at end of period | $ | 11.00 | $ | 10.65 | $ | 10.57 | $ | 11.13 | $ | 10.69 | $ | 10.03 | ||||||||||||
Total return | 3.29 | %(D) | 1.19 | % | (1.44 | )% | 5.20 | % | 6.75 | % | 0.30 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 77,610 | $ | 82,858 | $ | 119,727 | $ | 170,930 | $ | 79,164 | $ | 5,016 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses (including dividend and interest expense on securities sold short)(E) | 1.82 | %(F) | 2.13 | % | 2.21 | % | 1.91 | % | 1.59 | % | 1.86 | %(F) | ||||||||||||
Gross expenses (including dividend and interest expense on securities sold short)(G) | 1.82 | %(F) | 2.13 | % | 2.20 | % | 1.92 | % | 1.62 | % | 4.83 | %(F) | ||||||||||||
Net investment income (loss) | 0.43 | %(F) | (0.66 | )% | (0.94 | )% | 1.01 | % | (0.53 | )% | (1.13 | )%(F) | ||||||||||||
Portfolio turnover rate | 154 | %(D) | 227 | % | 271 | % | 288 | % | 307 | % | 311 | %(D) |
(A) | Represents the period from commencement of operations (August 9, 2011) through September 30, 2011. |
(B) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Not annualized. |
(E) | The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.27%, 1.26%, 1.26%, 1.28%, 1.28% and 1.28% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
(F) | Annualized. |
(G) | The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.27%, 1.26%,1.25%, 1.29%, 1.31% and 4.25% for the six months ended March 31, 2016, years ended September 30, 2015, 2014, 2013, 2012 and for the period ended September 30, 2011, respectively. |
See accompanying Notes to Financial Statements.
71 |
Financial Highlights (Continued)
Touchstone Mid Cap Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 23.22 | $ | 23.68 | $ | 20.87 | $ | 16.55 | $ | 13.16 | $ | 12.67 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.15 | (0.02 | )(A) | — | (B) | 0.12 | (A) | 0.10 | (A) | (0.02 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 1.10 | (0.44 | ) | 2.83 | 4.51 | 3.31 | 0.51 | |||||||||||||||||
Total from investment operations | 1.25 | (0.46 | ) | 2.83 | 4.63 | 3.41 | 0.49 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | (0.02 | ) | (0.31 | ) | (0.02 | ) | — | |||||||||||||||
Net asset value at end of period | $ | 24.47 | $ | 23.22 | $ | 23.68 | $ | 20.87 | $ | 16.55 | $ | 13.16 | ||||||||||||
Total return(C) | 5.38 | %(D) | (1.94 | )% | 13.57 | % | 28.43 | % | 25.95 | % | 3.87 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 57,203 | $ | 62,717 | $ | 35,513 | $ | 43,611 | $ | 905 | $ | 698 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(E) | 1.24 | % | 1.23 | % | 1.21 | % | 1.21 | % | 1.21 | % | ||||||||||||
Gross expenses | 1.35 | %(E) | 1.35 | % | 1.40 | % | 1.50 | % | 3.50 | % | 3.05 | % | ||||||||||||
Net investment income (loss) | 1.16 | %(E) | (0.07 | )% | 0.01 | % | 0.61 | % | 0.66 | % | (0.02 | )% | ||||||||||||
Portfolio turnover rate | 3 | %(D) | 17 | % | 26 | % | 20 | % | 152 | % | 97 | % |
Touchstone Mid Cap Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 22.35 | $ | 22.97 | $ | 20.37 | $ | 16.21 | $ | 12.96 | $ | 12.58 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | 0.04 | (0.20 | )(A) | (0.15 | ) | (0.03 | )(A) | (0.01 | )(A) | (0.07 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 1.08 | (0.42 | ) | 2.75 | 4.42 | 3.26 | 0.45 | |||||||||||||||||
Total from investment operations | 1.12 | (0.62 | ) | 2.60 | 4.39 | 3.25 | 0.38 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | (0.23 | ) | — | — | |||||||||||||||||
Net asset value at end of period | $ | 23.47 | $ | 22.35 | $ | 22.97 | $ | 20.37 | $ | 16.21 | $ | 12.96 | ||||||||||||
Total return(C) | 5.01 | %(D) | (2.70 | )% | 12.76 | % | 27.43 | % | 25.08 | % | 3.02 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 61,097 | $ | 60,815 | $ | 41,433 | $ | 25,018 | $ | 962 | $ | 476 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.99 | %(E) | 1.99 | % | 1.98 | % | 1.96 | % | 1.96 | % | 1.96 | % | ||||||||||||
Gross expenses | 2.12 | %(E) | 2.12 | % | 2.16 | % | 2.37 | % | 4.62 | % | 4.95 | % | ||||||||||||
Net investment income (loss) | 0.41 | %(E) | (0.82 | )% | (0.75 | )% | (0.14 | )% | (0.09 | )% | (0.80 | )% | ||||||||||||
Portfolio turnover rate | 3 | %(D) | 17 | % | 26 | % | 20 | % | 152 | % | 97 | % |
(A) | The net investment income (loss) per share is based on average shares outstanding for the period. |
(B) | Less than $0.005 per share. |
(C) | Total return 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.
72 |
Financial Highlights (Continued)
Touchstone Mid Cap Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 23.38 | $ | 23.83 | $ | 20.98 | $ | 16.60 | $ | 13.17 | $ | 12.68 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.17 | 0.05 | (A) | 0.06 | 0.17 | (A) | 0.15 | (A) | 0.05 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.11 | (0.45 | ) | 2.84 | 4.53 | 3.31 | 0.47 | |||||||||||||||||
Total from investment operations | 1.28 | (0.40 | ) | 2.90 | 4.70 | 3.46 | 0.52 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.05 | ) | (0.05 | ) | (0.32 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||
Net asset value at end of period | $ | 24.65 | $ | 23.38 | $ | 23.83 | $ | 20.98 | $ | 16.60 | $ | 13.17 | ||||||||||||
Total return | 5.50 | %(B) | (1.69 | )% | 13.83 | % | 28.78 | % | 26.29 | % | 4.10 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 497,243 | $ | 481,735 | $ | 266,446 | $ | 181,276 | $ | 47,419 | $ | 77,785 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.99 | %(C) | 0.99 | % | 0.98 | % | 0.95 | % | 0.92 | % | 0.96 | % | ||||||||||||
Gross expenses | 1.09 | %(C) | 1.11 | % | 1.06 | % | 1.09 | % | 1.08 | % | 1.06 | % | ||||||||||||
Net investment income | 1.41 | %(C) | 0.18 | % | 0.26 | % | 0.87 | % | 0.95 | % | 0.26 | % | ||||||||||||
Portfolio turnover rate | 3 | %(B) | 17 | % | 26 | % | 20 | % | 152 | % | 97 | % |
Touchstone Mid Cap Fund—Class Z |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 23.08 | $ | 23.54 | $ | 20.73 | $ | 16.45 | $ | 13.08 | $ | 12.59 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.14 | (0.02 | )(A) | 0.01 | 0.12 | (A) | 0.10 | (A) | (— | )(D) | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.10 | (0.44 | ) | 2.81 | 4.48 | 3.28 | 0.49 | |||||||||||||||||
Total from investment operations | 1.24 | (0.46 | ) | 2.82 | 4.60 | 3.38 | 0.49 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (— | )(D) | — | (0.01 | ) | (0.32 | ) | (0.01 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 24.32 | $ | 23.08 | $ | 23.54 | $ | 20.73 | $ | 16.45 | $ | 13.08 | ||||||||||||
Total return | 5.38 | %(B) | (1.95 | )% | 13.58 | % | 28.45 | % | 25.89 | % | 3.89 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 21,615 | $ | 18,693 | $ | 11,593 | $ | 12,858 | $ | 267 | $ | 934 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.24 | %(C) | 1.24 | % | 1.23 | % | 1.21 | % | 1.21 | % | 1.21 | % | ||||||||||||
Gross expenses | 1.44 | %(C) | 1.44 | % | 1.55 | % | 1.55 | % | 3.67 | % | 3.68 | % | ||||||||||||
Net investment income (loss) | 1.16 | %(C) | (0.07 | )% | 0.01 | % | 0.61 | % | 0.66 | % | (0.09 | )% | ||||||||||||
Portfolio turnover rate | 3 | %(B) | 17 | % | 26 | % | 20 | % | 152 | % | 97 | % |
(A) | The net investment income (loss) 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.
73 |
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 | |||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 23.40 | $ | 23.85 | $ | 20.99 | $ | 16.61 | $ | 15.36 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.21 | 0.06 | (B) | 0.08 | 0.19 | (B) | 0.10 | (B) | ||||||||||||
Net realized and unrealized gains (losses) on investments | 1.09 | (0.44 | ) | 2.84 | 4.52 | 1.15 | ||||||||||||||
Total from investment operations | 1.30 | (0.38 | ) | 2.92 | 4.71 | 1.25 | ||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | (0.02 | ) | (0.07 | ) | (0.06 | ) | (0.33 | ) | — | |||||||||||
Net asset value at end of period | $ | 24.68 | $ | 23.40 | $ | 23.85 | $ | 20.99 | $ | 16.61 | ||||||||||
Total return | 5.55 | %(C) | (1.62 | )% | 13.91 | % | 28.85 | % | 8.14 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000’s) | $ | 69,389 | $ | 76,324 | $ | 90,998 | $ | 74,170 | $ | 12,231 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.92 | %(D) | 0.92 | % | 0.91 | % | 0.89 | % | 0.89 | %(D) | ||||||||||
Gross expenses | 0.99 | %(D) | 1.00 | % | 1.01 | % | 1.07 | % | 1.38 | %(D) | ||||||||||
Net investment income | 1.48 | %(D) | 0.25 | % | 0.33 | % | 0.93 | % | 0.98 | %(D) | ||||||||||
Portfolio turnover rate | 3 | %(C) | 17 | % | 26 | % | 20 | % | 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.
74 |
Financial Highlights (Continued)
Touchstone Mid Cap Value Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March, 31 | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.70 | $ | 16.60 | $ | 16.09 | $ | 12.98 | $ | 10.86 | $ | 11.76 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.07 | 0.12 | 0.05 | 0.10 | 0.09 | 0.09 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.30 | (0.28 | ) | 1.85 | 3.26 | 2.78 | (0.72 | ) | ||||||||||||||||
Total from investment operations | 1.37 | (0.16 | ) | 1.90 | 3.36 | 2.87 | (0.63 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.10 | ) | (0.05 | ) | (0.10 | ) | (0.09 | ) | (0.11 | ) | ||||||||||||
Realized capital gains | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | (0.66 | ) | (0.16 | ) | ||||||||||||
Total distributions | (1.02 | ) | (0.74 | ) | (1.39 | ) | (0.25 | ) | (0.75 | ) | (0.27 | ) | ||||||||||||
Net asset value at end of period | $ | 16.05 | $ | 15.70 | $ | 16.60 | $ | 16.09 | $ | 12.98 | $ | 10.86 | ||||||||||||
Total return(A) | 9.12 | %(B) | (1.14 | )% | 12.49 | % | 26.26 | % | 27.55 | % | (5.72 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 8,256 | $ | 7,663 | $ | 14,029 | $ | 5,307 | $ | 3,409 | $ | 2,364 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.28 | %(C) | 1.29 | % | 1.29 | % | 1.29 | % | 1.29 | % | 1.29 | % | ||||||||||||
Gross expenses | 1.70 | %(C) | 1.66 | % | 1.58 | % | 1.75 | % | 1.97 | % | 2.07 | % | ||||||||||||
Net investment income | 0.79 | %(C) | 0.55 | % | 0.41 | % | 0.73 | % | 0.77 | % | 0.86 | % | ||||||||||||
Portfolio turnover rate | 19 | %(B) | 54 | % | 85 | %(D) | 68 | % | 42 | % | 59 | % |
Touchstone Mid Cap Value Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March, 31 | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.49 | $ | 16.42 | $ | 16.00 | $ | 12.92 | $ | 10.82 | $ | 11.74 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.01 | (0.04 | ) | (0.04 | ) | (— | )(E) | — | (E) | 0.03 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.29 | (0.25 | ) | 1.80 | 3.24 | 2.77 | (0.75 | ) | ||||||||||||||||
Total from investment operations | 1.30 | (0.29 | ) | 1.76 | 3.24 | 2.77 | (0.72 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | — | — | — | (0.01 | ) | (0.01 | ) | (0.04 | ) | |||||||||||||||
Realized capital gains | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | (0.66 | ) | (0.16 | ) | ||||||||||||
Total distributions | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.16 | ) | (0.67 | ) | (0.20 | ) | ||||||||||||
Net asset value at end of period | $ | 15.83 | $ | 15.49 | $ | 16.42 | $ | 16.00 | $ | 12.92 | $ | 10.82 | ||||||||||||
Total return(A) | 8.77 | %(B) | (1.91 | )% | 11.62 | % | 25.32 | % | 26.64 | % | (6.45 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 2,248 | $ | 1,752 | $ | 2,002 | $ | 719 | $ | 292 | $ | 204 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.03 | %(C) | 2.04 | % | 2.04 | % | 2.04 | % | 2.04 | % | 2.04 | % | ||||||||||||
Gross expenses | 2.86 | %(C) | 2.83 | % | 3.05 | % | 4.17 | % | 7.90 | % | 7.74 | % | ||||||||||||
Net investment income (loss) | 0.04 | %(C) | (0.20 | )% | (0.34 | )% | (0.02 | )% | 0.02 | % | 0.10 | % | ||||||||||||
Portfolio turnover rate | 19 | %(B) | 54 | % | 85 | %(D) | 68 | % | 42 | % | 59 | % |
(A) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of the Touchstone Mid Cap Value Opportunities Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher. |
(E) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
75 |
Financial Highlights (Continued)
Touchstone Mid Cap Value Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March, 31 | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.76 | $ | 16.67 | $ | 16.15 | $ | 13.03 | $ | 10.89 | $ | 11.79 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.08 | 0.14 | 0.07 | 0.15 | 0.11 | 0.12 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.32 | (0.27 | ) | 1.88 | 3.26 | 2.81 | (0.72 | ) | ||||||||||||||||
Total from investment operations | 1.40 | (0.13 | ) | 1.95 | 3.41 | 2.92 | (0.60 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.14 | ) | (0.09 | ) | (0.14 | ) | (0.12 | ) | (0.14 | ) | ||||||||||||
Realized capital gains | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | (0.66 | ) | (0.16 | ) | ||||||||||||
Total distributions | (1.04 | ) | (0.78 | ) | (1.43 | ) | (0.29 | ) | (0.78 | ) | (0.30 | ) | ||||||||||||
Net asset value at end of period | $ | 16.12 | $ | 15.76 | $ | 16.67 | $ | 16.15 | $ | 13.03 | $ | 10.89 | ||||||||||||
Total return | 9.27 | %(A) | (0.91 | )% | 12.77 | % | 26.53 | % | 27.97 | % | (5.51 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 211,834 | $ | 208,525 | $ | 213,404 | $ | 15,782 | $ | 13,785 | $ | 4,685 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.03 | %(B) | 1.04 | % | 1.04 | % | 1.04 | % | 1.04 | % | 1.04 | % | ||||||||||||
Gross expenses | 1.14 | %(B) | 1.13 | % | 1.14 | % | 1.37 | % | 1.46 | % | 1.58 | % | ||||||||||||
Net investment income | 1.04 | %(B) | 0.81 | % | 0.66 | % | 0.98 | % | 1.02 | % | 1.20 | % | ||||||||||||
Portfolio turnover rate | 19 | %(A) | 54 | % | 85 | %(C) | 68 | % | 42 | % | 59 | % |
Touchstone Mid Cap Value Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March, 31 | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.82 | $ | 16.73 | $ | 16.20 | $ | 13.07 | $ | 10.92 | $ | 11.83 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.17 | 0.13 | 0.16 | 0.13 | 0.16 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.33 | (0.27 | ) | 1.85 | 3.28 | 2.82 | (0.75 | ) | ||||||||||||||||
Total from investment operations | 1.42 | (0.10 | ) | 1.98 | 3.44 | 2.95 | (0.59 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.17 | ) | (0.11 | ) | (0.16 | ) | (0.14 | ) | (0.16 | ) | ||||||||||||
Realized capital gains | (0.96 | ) | (0.64 | ) | (1.34 | ) | (0.15 | ) | (0.66 | ) | (0.16 | ) | ||||||||||||
Total distributions | (1.05 | ) | (0.81 | ) | (1.45 | ) | (0.31 | ) | (0.80 | ) | (0.32 | ) | ||||||||||||
Net asset value at end of period | $ | 16.19 | $ | 15.82 | $ | 16.73 | $ | 16.20 | $ | 13.07 | $ | 10.92 | ||||||||||||
Total return | 9.38 | %(A) | (0.76 | )% | 12.90 | % | 26.71 | % | 28.17 | % | (5.41 | )% | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 126,742 | $ | 124,592 | $ | 134,259 | $ | 144,965 | $ | 75,240 | $ | 39,808 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.89 | %(B) | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | 0.89 | % | ||||||||||||
Gross expenses | 1.03 | %(B) | 1.03 | % | 1.04 | % | 1.09 | % | 1.12 | % | 1.15 | % | ||||||||||||
Net investment income | 1.18 | %(B) | 0.96 | % | 0.81 | % | 1.13 | % | 1.17 | % | 1.21 | % | ||||||||||||
Portfolio turnover rate | 19 | %(A) | 54 | % | 85 | %(C) | 68 | % | 42 | % | 59 | % |
(A) | Not annualized. |
(B) | Annualized. |
(C) | Portfolio turnover excludes the purchases and sales of the Touchstone Mid Cap Value Opportunities Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
76 |
Financial Highlights (Continued)
Touchstone Premium Yield Equity Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March, 31 | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.27 | $ | 9.98 | $ | 8.92 | $ | 8.11 | $ | 6.76 | $ | 6.48 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.24 | 0.40 | (A) | 0.24 | 0.24 | 0.21 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.27 | (1.25 | ) | 1.07 | 0.80 | 1.36 | 0.28 | |||||||||||||||||
Total from investment operations | 0.40 | (1.01 | ) | 1.47 | 1.04 | 1.60 | 0.49 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.25 | ) | (0.41 | ) | (0.23 | ) | (0.24 | ) | (0.21 | ) | ||||||||||||
Realized capital gains | (0.55 | ) | (0.45 | ) | — | — | — | — | ||||||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | — | |||||||||||||||||
Total distributions | (0.66 | ) | (0.70 | ) | (0.41 | ) | (0.23 | ) | (0.25 | ) | (0.21 | ) | ||||||||||||
Net asset value at end of period | $ | 8.01 | $ | 8.27 | $ | 9.98 | $ | 8.92 | $ | 8.11 | $ | 6.76 | ||||||||||||
Total return(B) | 5.31 | %(C) | (10.79 | )% | 16.79 | % | 12.97 | % | 23.98 | % | 7.43 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 27,361 | $ | 36,023 | $ | 45,124 | $ | 86,171 | $ | 68,780 | $ | 28,739 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.20 | %(D) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Gross expenses | 1.34 | %(D) | 1.25 | % | 1.29 | % | 1.29 | % | 1.30 | % | 1.35 | % | ||||||||||||
Net investment income | 3.03 | %(D) | 2.57 | % | 4.24 | %(A) | 2.74 | % | 3.26 | % | 3.02 | % | ||||||||||||
Portfolio turnover rate | 19 | %(C) | 31 | % | 26 | % | 56 | % | 16 | % | 54 | % |
Touchstone Premium Yield Equity Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March, 31 | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.26 | $ | 9.97 | $ | 8.90 | $ | 8.10 | $ | 6.76 | $ | 6.49 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.17 | 0.33 | (A) | 0.16 | 0.18 | 0.16 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.27 | (1.24 | ) | 1.07 | 0.80 | 1.35 | 0.27 | |||||||||||||||||
Total from investment operations | 0.36 | (1.07 | ) | 1.40 | 0.96 | 1.53 | 0.43 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.19 | ) | (0.33 | ) | (0.16 | ) | (0.18 | ) | (0.16 | ) | ||||||||||||
Realized capital gains | (0.55 | ) | (0.45 | ) | — | — | — | — | ||||||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | — | |||||||||||||||||
Total distributions | (0.63 | ) | (0.64 | ) | (0.33 | ) | (0.16 | ) | (0.19 | ) | (0.16 | ) | ||||||||||||
Net asset value at end of period | $ | 7.99 | $ | 8.26 | $ | 9.97 | $ | 8.90 | $ | 8.10 | $ | 6.76 | ||||||||||||
Total return(B) | 4.92 | %(c) | (11.45 | )% | 15.99 | % | 12.03 | % | 22.93 | % | 6.60 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 26,646 | $ | 31,405 | $ | 31,190 | $ | 24,009 | $ | 15,680 | $ | 7,499 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.95 | %(D) | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | 1.95 | % | ||||||||||||
Gross expenses | 2.05 | %(D) | 2.00 | % | 2.02 | % | 2.08 | % | 2.14 | % | 2.28 | % | ||||||||||||
Net investment income | 2.28 | %(D) | 1.82 | % | 3.49 | %(A) | 1.99 | % | 2.51 | % | 2.27 | % | ||||||||||||
Portfolio turnover rate | 19 | %(C) | 31 | % | 26 | % | 56 | % | 16 | % | 54 | % |
(A) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A and Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.16 and 1.70%, respectively |
(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.
77 |
Financial Highlights (Continued)
Touchstone Premium Yield Equity Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months Ended | ||||||||||||||||||||||||
March, 31 2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 8.25 | $ | 9.97 | $ | 8.90 | $ | 8.10 | $ | 6.75 | $ | 6.47 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.13 | 0.26 | 0.43 | (A) | 0.25 | 0.27 | 0.20 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.28 | (1.25 | ) | 1.07 | 0.80 | 1.35 | 0.30 | |||||||||||||||||
Total from investment operations | 0.41 | (0.99 | ) | 1.50 | 1.05 | 1.62 | 0.50 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.28 | ) | (0.43 | ) | (0.25 | ) | (0.26 | ) | (0.22 | ) | ||||||||||||
Realized capital gains | (0.55 | ) | (0.45 | ) | — | — | — | — | ||||||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | — | |||||||||||||||||
Total distributions | (0.67 | ) | (0.73 | ) | (0.43 | ) | (0.25 | ) | (0.27 | ) | (0.22 | ) | ||||||||||||
Net asset value at end of period | $ | 7.99 | $ | 8.25 | $ | 9.97 | $ | 8.90 | $ | 8.10 | $ | 6.75 | ||||||||||||
Total return | 5.59 | %(B) | (10.58 | )% | 17.13 | % | 13.14 | % | 24.31 | % | 7.67 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 87,300 | $ | 100,772 | $ | 109,201 | $ | 66,644 | $ | 33,185 | $ | 3,980 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.95 | %(C) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Gross expenses | 1.03 | %(C) | 0.97 | % | 0.96 | % | 1.04 | % | 1.18 | % | 1.25 | % | ||||||||||||
Net investment income | 3.28 | %(C) | 2.82 | % | 4.49 | %(A) | 2.99 | % | 3.51 | % | 3.16 | % | ||||||||||||
Portfolio turnover rate | 19 | %(B) | 31 | % | 26 | % | 56 | % | 16 | % | 54 | % |
(A) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class Y net investment income per share and ratio of net investment income to average net assets would have been lower by $0.16 and 1.70%, respectively. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
78 |
Financial Highlights (Continued)
Touchstone Sands Capital Select Growth Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.48 | $ | 18.15 | $ | 16.08 | $ | 12.65 | $ | 9.39 | $ | 9.39 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.11 | ) | (0.15 | ) | (0.29 | ) | (0.05 | ) | (0.09 | )(B) | (0.03 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.13 | ) | (0.64 | ) | 2.49 | 3.48 | 3.35 | 0.03 | ||||||||||||||||
Total from investment operations | (0.24 | ) | (0.79 | ) | 2.20 | 3.43 | 3.26 | — | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 14.71 | $ | 16.48 | $ | 18.15 | $ | 16.08 | $ | 12.65 | $ | 9.39 | ||||||||||||
Total return(C) | (2.33 | )%(D) | (4.70 | )% | 13.73 | % | 27.11 | % | 34.72 | % | 0.00 | %(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 170,899 | $ | 230,783 | $ | 289,506 | $ | 416,396 | $ | 186,384 | $ | 21,211 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.07 | %(E) | 1.10 | % | 1.31 | % | 1.28 | % | 1.37 | % | 1.45 | %(E) | ||||||||||||
Gross expenses | 1.09 | %(E) | 1.10 | % | 1.33 | % | 1.37 | % | 1.47 | % | 1.64 | %(E) | ||||||||||||
Net investment loss | (0.79 | )%(E) | (0.65 | )% | (0.91 | )% | (0.62 | )% | (0.74 | )% | (0.94 | )%(E) | ||||||||||||
Portfolio turnover rate | 29 | %(D) | 29 | % | 30 | % | 37 | % | 19 | % | 19 | %(D) |
Touchstone Sands Capital Select Growth Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.86 | $ | 17.62 | $ | 15.74 | $ | 12.47 | $ | 9.33 | $ | 9.39 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.15 | ) | (0.30 | ) | (0.32 | ) | (0.13 | ) | (0.17 | )(B) | (0.06 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.13 | ) | (0.58 | ) | 2.33 | 3.40 | 3.31 | — | (F) | |||||||||||||||
Total from investment operations | (0.28 | ) | (0.88 | ) | 2.01 | 3.27 | 3.14 | (0.06 | ) | |||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 14.05 | $ | 15.86 | $ | 17.62 | $ | 15.74 | $ | 12.47 | $ | 9.33 | ||||||||||||
Total return(C) | (2.69 | )%(D) | (5.38 | )% | 12.89 | % | 26.14 | % | 33.66 | % | (0.64 | )%(D) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 136,863 | $ | 163,237 | $ | 203,865 | $ | 198,584 | $ | 88,931 | $ | 8,660 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.82 | %(E) | 1.85 | % | 2.06 | % | 2.03 | % | 2.12 | % | 2.20 | %(E) | ||||||||||||
Gross expenses | 1.84 | %(E) | 1.85 | % | 2.09 | % | 2.14 | % | 2.22 | % | 2.56 | %(E) | ||||||||||||
Net investment loss | (1.54 | )%(E) | (1.40 | )% | (1.65 | )% | (1.37 | )% | (1.49 | )% | (1.69 | )%(E) | ||||||||||||
Portfolio turnover rate | 29 | %(D) | 29 | % | 30 | % | 37 | % | 19 | % | 19 | %(D) |
(A) | Represents the period from commencement of operations (November 15, 2010) through September 30, 2011. |
(B) | The net investment loss per share is based on average shares outstanding for the period. |
(C) | Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower. |
(D) | Not annualized. |
(E) | Annualized. |
(F) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
79 |
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, 2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.96 | $ | 18.61 | $ | 16.44 | $ | 12.90 | $ | 9.56 | $ | 8.83 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.08 | ) | (0.10 | ) | (0.02 | ) | (0.06 | )(A) | (0.14 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.18 | ) | (0.69 | ) | 2.40 | 3.56 | 3.40 | 0.87 | ||||||||||||||||
Total from investment operations | (0.23 | ) | (0.77 | ) | 2.30 | 3.54 | 3.34 | 0.73 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 15.20 | $ | 16.96 | $ | 18.61 | $ | 16.44 | $ | 12.90 | $ | 9.56 | ||||||||||||
Total return | (2.20 | )%(B) | (4.46 | )% | 14.04 | % | 27.44 | % | 34.94 | % | 8.14 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 2,539,210 | $ | 3,198,758 | $ | 3,473,661 | $ | 2,684,731 | $ | 1,215,124 | $ | 392,464 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.82 | %(C) | 0.83 | % | 1.06 | % | 1.03 | % | 1.11 | % | 1.20 | % | ||||||||||||
Gross expenses | 0.83 | %(C) | 0.83 | % | 1.03 | % | 1.06 | % | 1.18 | % | 1.23 | % | ||||||||||||
Net investment loss | (0.54 | )%(C) | (0.39 | )% | (0.66 | )% | (0.37 | )% | (0.49 | )% | (0.68 | )% | ||||||||||||
Portfolio turnover rate | 29 | %(B) | 29 | % | 30 | % | 37 | % | 19 | % | 19 | % |
Touchstone Sands Capital Select Growth Fund—Class Z |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months Ended | ||||||||||||||||||||||||
March 31, 2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.49 | $ | 18.15 | $ | 16.08 | $ | 12.65 | $ | 9.39 | $ | 8.70 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.12 | ) | (0.19 | ) | (0.17 | ) | (0.10 | ) | (0.08 | )(A) | (0.07 | ) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (0.12 | ) | (0.59 | ) | 2.37 | 3.53 | 3.34 | 0.76 | ||||||||||||||||
Total from investment operations | (0.24 | ) | (0.78 | ) | 2.20 | 3.43 | 3.26 | 0.69 | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Realized capital gains | (1.53 | ) | (0.88 | ) | (0.13 | ) | — | — | — | |||||||||||||||
Net asset value at end of period | $ | 14.72 | $ | 16.49 | $ | 18.15 | $ | 16.08 | $ | 12.65 | $ | 9.39 | ||||||||||||
Total return | (2.26 | )%(B) | (4.70 | )% | 13.73 | % | 27.11 | % | 34.72 | % | 7.93 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 936,987 | $ | 1,292,853 | $ | 2,302,038 | $ | 2,140,884 | $ | 1,836,957 | $ | 911,849 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.06 | %(C) | 1.08 | % | 1.31 | % | 1.28 | % | 1.32 | % | 1.42 | % | ||||||||||||
Gross expenses | 1.15 | %(C) | 1.13 | % | 1.35 | % | 1.37 | % | 1.39 | % | 1.52 | % | ||||||||||||
Net investment loss | (0.78 | )%(C) | (0.64 | )% | (0.90 | )% | (0.62 | )% | (0.70 | )% | (0.93 | )% | ||||||||||||
Portfolio turnover rate | 29 | %(B) | 29 | % | 30 | % | 37 | % | 19 | % | 19 | % |
(A) | The net investment loss per share is based on average shares outstanding for the period. |
(B) | Not annualized. |
(C) | Annualized. |
See accompanying Notes to Financial Statements.
80 |
Financial Highlights (Continued)
Touchstone Small Cap Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.73 | $ | 20.55 | $ | 19.44 | $ | 16.02 | $ | 11.94 | $ | 11.62 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.03 | 0.15 | (A) | (0.09 | )(B) | 0.44 | 0.05 | (0.02 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.47 | (1.38 | ) | 1.80 | 3.28 | 4.20 | 0.35 | |||||||||||||||||
Total from investment operations | 0.50 | (1.23 | ) | 1.71 | 3.72 | 4.25 | 0.33 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.130 | ) | — | (C) | (0.31 | ) | (0.18 | ) | (— | )(C) | (0.01 | ) | ||||||||||||
Realized capital gains | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | (0.17 | ) | (— | )(C) | ||||||||||||
Total distributions | (2.08 | ) | (1.59 | ) | (0.60 | ) | (0.30 | ) | (0.17 | ) | (0.01 | ) | ||||||||||||
Net asset value at end of period | $ | 16.15 | $ | 17.73 | $ | 20.55 | $ | 19.44 | $ | 16.02 | $ | 11.94 | ||||||||||||
Total return(D) | 3.17 | %(E) | (6.36 | )% | 8.80 | % | 23.60 | % | 35.86 | % | 2.82 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 49,707 | $ | 62,423 | $ | 60,246 | $ | 122,394 | $ | 84,539 | $ | 43,074 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.38 | %(F) | 1.38 | % | 1.36 | % | 1.34 | % | 1.34 | % | 1.34 | % | ||||||||||||
Gross expenses | 1.47 | %(F) | 1.42 | % | 1.43 | % | 1.53 | % | 1.58 | % | 1.79 | % | ||||||||||||
Net investment income (loss) | 0.32 | %(F) | 0.75 | %(A) | (0.45 | )% | 2.47 | % | 0.37 | % | (0.10 | )% | ||||||||||||
Portfolio turnover rate | 7 | %(E) | 42 | % | 17 | % | 15 | % | 11 | % | 37 | % |
Touchstone Small Cap Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.16 | $ | 20.07 | $ | 19.01 | $ | 15.69 | $ | 11.79 | $ | 11.55 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | — | (A)(C) | (0.24 | )(B) | 0.30 | (0.01 | ) | (0.08 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.45 | (1.32 | ) | 1.75 | 3.22 | 4.08 | 0.32 | |||||||||||||||||
Total from investment operations | 0.41 | (1.32 | ) | 1.51 | 3.52 | 4.07 | 0.24 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.02 | ) | — | (0.16 | ) | (0.08 | ) | (— | )(C) | (— | )(C) | |||||||||||||
Realized capital gains | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | (0.17 | ) | (— | )(C) | ||||||||||||
Total distributions | (1.97 | ) | (1.59 | ) | (0.45 | ) | (0.20 | ) | (0.17 | ) | (— | )(C) | ||||||||||||
Net asset value at end of period | $ | 15.60 | $ | 17.16 | $ | 20.07 | $ | 19.01 | $ | 15.69 | $ | 11.79 | ||||||||||||
Total return(D) | 2.72 | %(E) | (7.01 | )% | 7.96 | % | 22.69 | % | 34.78 | % | 2.08 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 17,977 | $ | 21,562 | $ | 27,104 | $ | 28,685 | $ | 24,278 | $ | 11,739 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.13 | %(F) | 2.13 | % | 2.12 | % | 2.09 | % | 2.09 | % | 2.09 | % | ||||||||||||
Gross expenses | 2.23 | %(F) | 2.17 | % | 2.17 | % | 2.24 | % | 2.30 | % | 2.51 | % | ||||||||||||
Net investment income (loss) | (0.43 | )%(F) | 0.00 | %(A)(C) | (1.20 | )% | 1.72 | % | (0.38 | )% | (0.80 | )% | ||||||||||||
Portfolio turnover rate | 7 | %(E) | 42 | % | 17 | % | 15 | % | 11 | % | 37 | % |
(A) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A and Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(B) | The net investment loss per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share or 0.005%. |
(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.
81 |
Financial Highlights (Continued)
Touchstone Small Cap Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.93 | $ | 20.72 | $ | 19.59 | $ | 16.13 | $ | 12.00 | $ | 11.67 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.18 | (A) | (0.03 | )(B) | 0.46 | 0.07 | 0.02 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.47 | (1.37 | ) | 1.81 | 3.34 | 4.24 | 0.34 | |||||||||||||||||
Total from investment operations | 0.52 | (1.19 | ) | 1.78 | 3.80 | 4.31 | 0.36 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.01 | ) | (0.36 | ) | (0.22 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||
Realized capital gains | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | (0.17 | ) | (— | )(C) | ||||||||||||
Total distributions | (2.12 | ) | (1.60 | ) | (0.65 | ) | (0.34 | ) | (0.18 | ) | (0.03 | ) | ||||||||||||
Net asset value at end of period | $ | 16.33 | $ | 17.93 | $ | 20.72 | $ | 19.59 | $ | 16.13 | $ | 12.00 | ||||||||||||
Total return | 3.28 | %(D) | (6.11 | )% | 9.12 | % | 24.01 | % | 36.23 | % | 3.05 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 309,500 | $ | 333,971 | $ | 309,367 | $ | 258,024 | $ | 168,987 | $ | 58,164 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.13 | %(E) | 1.11 | % | 1.06 | % | 1.03 | % | 1.04 | % | 1.09 | % | ||||||||||||
Gross expenses | 1.14 | %(E) | 1.11 | % | 1.08 | % | 1.14 | % | 1.17 | % | 1.21 | % | ||||||||||||
Net investment income (loss) | 0.58 | %(E) | 1.02 | %(A) | (0.15 | )% | 2.78 | % | 0.66 | % | 0.21 | % | ||||||||||||
Portfolio turnover rate | 7 | %(D) | 42 | % | 17 | % | 15 | % | 11 | % | 37 | % |
Touchstone Small Cap Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.92 | $ | 20.69 | $ | 19.57 | $ | 16.11 | $ | 11.99 | $ | 11.65 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.06 | 0.24 | (A) | (0.02 | )(B) | 0.49 | 0.06 | 0.03 | ||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.46 | (1.41 | ) | 1.81 | 3.32 | 4.26 | 0.35 | |||||||||||||||||
Total from investment operations | 0.52 | (1.17 | ) | 1.79 | 3.81 | 4.32 | 0.38 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.18 | ) | (0.01 | ) | (0.38 | ) | (0.23 | ) | (0.03 | ) | (0.04 | ) | ||||||||||||
Realized capital gains | (1.95 | ) | (1.59 | ) | (0.29 | ) | (0.12 | ) | (0.17 | ) | (— | )(C) | ||||||||||||
Total distributions | (2.13 | ) | (1.60 | ) | (0.67 | ) | (0.35 | ) | (0.20 | ) | (0.04 | ) | ||||||||||||
Net asset value at end of period | $ | 16.31 | $ | 17.92 | $ | 20.69 | $ | 19.57 | $ | 16.11 | $ | 11.99 | ||||||||||||
Total return | 3.29 | %(D) | (6.01 | )% | 9.17 | % | 24.13 | % | 36.32 | % | 3.24 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 265,244 | $ | 301,868 | $ | 393,287 | $ | 395,770 | $ | 247,876 | $ | 43,035 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.05 | %(E) | 1.04 | % | 1.01 | % | 0.94 | % | 0.94 | % | 0.94 | % | ||||||||||||
Gross expenses | 1.05 | %(E) | 1.04 | % | 1.04 | % | 1.07 | % | 1.09 | % | 1.16 | % | ||||||||||||
Net investment income | 0.65 | %(E) | 1.10 | %(A) | (0.10 | )% | 2.87 | % | 0.77 | % | 0.36 | % | ||||||||||||
Portfolio turnover rate | 7 | %(D) | 42 | % | 17 | % | 15 | % | 11 | % | 37 | % |
(A) | Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class Y and Institutional Class net investment income per share and ratio of net investment income to average net assets would have been lower by $0.13 and 0.65%, respectively. |
(B) | The net investment loss per share is based on average shares outstanding for the period. |
(C) | Less than $0.005 per share. |
(D) | Not annualized. |
(E) | Annualized. |
See accompanying Notes to Financial Statements.
82 |
Financial Highlights (Continued)
Touchstone Small Cap Value Fund—Class A |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A)(B) | |||||||||||||||||||
Net asset value at beginning of period | $ | 20.17 | $ | 23.23 | $ | 22.79 | $ | 18.33 | $ | 13.85 | $ | 17.36 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.19 | 0.36 | 0.36 | 0.41 | 0.21 | (C) | 0.22 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.08 | (2.15 | ) | 0.39 | 4.45 | 4.60 | (3.57 | ) | ||||||||||||||||
Total from investment operations | 1.27 | (1.79 | ) | 0.75 | 4.86 | 4.81 | (3.35 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.35 | ) | (0.31 | ) | (0.40 | ) | (0.33 | ) | (0.16 | ) | ||||||||||||
Realized capital gains | (0.73 | ) | (0.92 | ) | — | — | — | — | ||||||||||||||||
Total distributions | (0.93 | ) | (1.27 | ) | (0.31 | ) | (0.40 | ) | (0.33 | ) | (0.16 | ) | ||||||||||||
Net asset value at end of period | $ | 20.51 | $ | 20.17 | $ | 23.23 | $ | 22.79 | $ | 18.33 | $ | 13.85 | ||||||||||||
Total return(D) | 6.50 | %(E) | (8.32 | )% | 3.19 | % | 26.82 | % | 34.87 | % | (19.37 | )%(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 24,530 | $ | 24,659 | $ | 31,773 | $ | 34,826 | $ | 32,115 | $ | 37,385 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 138 | %(F) | 1.38 | % | 1.43 | % | 1.43 | % | 1.43 | % | 1.43 | %(F) | ||||||||||||
Gross expenses | 1.68 | %(F) | 1.60 | % | 1.67 | % | 1.78 | % | 1.77 | % | 1.72 | %(F) | ||||||||||||
Net investment income | 1.91 | %(F) | 1.51 | % | 1.44 | % | 1.98 | % | 1.26 | % | 1.97 | %(F) | ||||||||||||
Portfolio turnover rate | 40 | %(E) | 1.12 | % | 100 | %(G)(H) | 98 | % | 109 | % | 206 | %(E) |
Touchstone Small Cap Value Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.98 | $ | 23.00 | $ | 22.61 | $ | 18.23 | $ | 13.82 | $ | 17.36 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.17 | 0.16 | 0.29 | 0.09 | (C) | 0.09 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.06 | (2.10 | ) | 0.40 | 4.39 | 4.58 | (3.50 | ) | ||||||||||||||||
Total from investment operations | 1.17 | (1.93 | ) | 0.56 | 4.68 | 4.67 | (3.41 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.12 | ) | (0.17 | ) | (0.17 | ) | (0.30 | ) | (0.26 | ) | (0.13 | ) | ||||||||||||
Realized capital gains | (0.73 | ) | (0.92 | ) | — | — | — | — | ||||||||||||||||
Total distributions | (0.85 | ) | (1.09 | ) | (0.17 | ) | (0.30 | ) | (0.26 | ) | (0.13 | ) | ||||||||||||
Net asset value at end of period | $ | 20.30 | $ | 19.98 | $ | 23.00 | $ | 22.61 | $ | 18.23 | $ | 13.82 | ||||||||||||
Total return(D) | 6.07 | %(E) | (9.01 | )% | 2.46 | % | 25.90 | % | 33.95 | % | (19.77 | )%(E) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 1,434 | $ | 1,396 | $ | 2,169 | $ | 841 | $ | 104 | $ | 2 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 2.13 | %(F) | 2.13 | % | 2.18 | % | 2.18 | % | 2.18 | % | 2.18 | %(F) | ||||||||||||
Gross expenses | 3.50 | %(F) | 3.13 | % | 3.25 | % | 5.19 | % | 28.35 | % | 342.41 | %(F) | ||||||||||||
Net investment income | 1.16 | %(F) | 0.76 | % | 0.69 | % | 1.23 | % | 0.51 | % | 0.95 | %(F) | ||||||||||||
Portfolio turnover rate | 40 | %(E) | 112 | % | 100 | %(G)(H) | 98 | % | 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. |
(G) | Portfolio turnover rate excludes securities received from a subscription-in-kind. |
(H) | Portfolio turnover excludes the purchases and sales of the Touchstone Small Company Value Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
83 |
Financial Highlights (Continued)
Touchstone Small Cap Value Fund—Class Y |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 20.20 | $ | 23.25 | $ | 22.82 | $ | 18.36 | $ | 13.89 | $ | 17.36 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.21 | 0.42 | 0.35 | 0.48 | 0.26 | (B) | 0.71 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.08 | (2.14 | ) | 0.46 | 4.44 | 4.59 | (4.00 | ) | ||||||||||||||||
Total from investment operations | 1.29 | (1.72 | ) | 0.81 | 4.92 | 4.85 | (3.29 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.22 | ) | (0.41 | ) | (0.38 | ) | (0.46 | ) | (0.38 | ) | (0.18 | ) | ||||||||||||
Realized capital gains | (0.73 | ) | (0.92 | ) | — | — | — | — | ||||||||||||||||
Total distributions | (0.95 | ) | (1.33 | ) | (0.38 | ) | (0.46 | ) | (0.38 | ) | (0.18 | ) | ||||||||||||
Net asset value at end of period | $ | 20.54 | $ | 20.20 | $ | 23.25 | $ | 22.82 | $ | 18.36 | $ | 13.89 | ||||||||||||
Total return | 6.62 | %(C) | (8.08 | )% | 3.47 | % | 27.11 | % | 35.19 | % | (19.10 | )%(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 3,956 | $ | 4,419 | $ | 9,097 | $ | 769 | $ | 222 | $ | 2 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.13 | %(D) | 1.13 | % | 1.18 | % | 1.18 | % | 1.18 | % | 1.18 | %(D) | ||||||||||||
Gross expenses | 1.74 | %(D) | 1.44 | % | 1.65 | % | 3.45 | % | 22.47 | % | 70.29 | %(D) | ||||||||||||
Net investment income | 2.16 | %(D) | 1.76 | % | 1.70 | % | 2.23 | % | 1.51 | % | 2.05 | %(D) | ||||||||||||
Portfolio turnover rate | 40 | %(C) | 112 | % | 100 | %(E)(F) | 98 | % | 109 | % | 206 | %(C) |
Touchstone Small Cap Value Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 20.19 | $ | 23.24 | $ | 22.81 | $ | 18.35 | $ | 13.86 | $ | 17.36 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.24 | 0.45 | 0.40 | 0.48 | 0.29 | (B) | 0.20 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 1.07 | (2.13 | ) | 0.44 | 4.47 | 4.60 | (3.51 | ) | ||||||||||||||||
Total from investment operations | 1.31 | (1.68 | ) | 0.84 | 4.95 | 4.89 | (3.31 | ) | ||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.45 | ) | (0.41 | ) | (0.49 | ) | (0.40 | ) | (0.19 | ) | ||||||||||||
Realized capital gains | (0.73 | ) | (0.92 | ) | — | — | — | — | ||||||||||||||||
Total distributions | (0.97 | ) | (1.37 | ) | (0.41 | ) | (0.49 | ) | (0.40 | ) | (0.19 | ) | ||||||||||||
Net asset value at end of period | $ | 20.53 | $ | 20.19 | $ | 23.24 | $ | 22.81 | $ | 18.35 | $ | 13.86 | ||||||||||||
Total return | 6.70 | %(C) | (7.93 | )% | 3.59 | % | 27.30 | % | 35.56 | % | (19.23 | )%(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 22,328 | $ | 25,968 | $ | 29,831 | $ | 2,665 | $ | 1,160 | $ | 741 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.98 | %(D) | 0.98 | % | 1.03 | % | 1.03 | % | 1.03 | % | 1.03 | %(D) | ||||||||||||
Gross expenses | 1.25 | %(D) | 1.19 | % | 1.30 | % | 1.83 | % | 1.87 | % | 3.59 | %(D) | ||||||||||||
Net investment income | 2.31 | %(D) | 1.91 | % | 1.84 | % | 2.38 | % | 1.66 | % | 2.12 | %(D) | ||||||||||||
Portfolio turnover rate | 40 | %(C) | 112 | % | 100 | %(E)(F) | 98 | % | 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. |
(E) | Portfolio turnover rate excludes securities received from a subscription-in-kind. |
(F) | Portfolio turnover excludes the purchases and sales of the Touchstone Small Company Value Fund acquired on March 21, 2014. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
84 |
Financial Highlights (Continued)
Touchstone Total Return Bond Fund—Class A† |
Selected Data for a Share Outstanding Throughout Each Period†† |
Six Months Ended | Period Ended | Period Ended | ||||||||||||||||||||||||||
March 31, 2016 | Year Ended September 30, | September 30, | March 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | 2011(B) | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.19 | $ | 10.23 | $ | 10.07 | $ | 10.50 | $ | 10.13 | $ | 9.90 | $ | 10.15 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.12 | 0.22 | 0.23 | 0.21 | 0.23 | 0.24 | 0.28 | |||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.04 | 0.01 | 0.22 | (0.36 | ) | 0.41 | 0.24 | (0.14 | )(C) | |||||||||||||||||||
Total from investment operations | 0.16 | 0.23 | 0.45 | (0.15 | ) | 0.64 | 0.48 | 0.14 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.27 | ) | (0.29 | ) | (0.27 | ) | (0.27 | ) | (0.25 | ) | (0.39 | ) | ||||||||||||||
Realized capital gains | — | — | — | (0.01 | ) | — | — | — | ||||||||||||||||||||
Total distributions | (0.13 | ) | (0.27 | ) | (0.29 | ) | (0.28 | ) | (0.27 | ) | (0.25 | ) | (0.39 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.22 | $ | 10.19 | $ | 10.23 | $ | 10.07 | $ | 10.50 | $ | 10.13 | $ | 9.90 | ||||||||||||||
Total return(D) | 1.63 | %(E) | 2.24 | % | 4.53 | % | (1.48 | )% | 6.42 | % | 5.02 | %(E) | 1.31 | %(E)(F) | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 5,945 | $ | 5,749 | $ | 5,144 | $ | 12,167 | $ | 10,210 | $ | 4,737 | $ | 7 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 0.88 | %(G) | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | %(G) | 0.65 | %(G) | ||||||||||||||
Gross expenses | 1.29 | %(G) | 1.26 | % | 1.25 | % | 1.10 | % | 1.22 | % | 1.69 | %(G) | 1.75 | %(G) | ||||||||||||||
Net investment income | 2.46 | %(G) | 2.10 | % | 2.32 | % | 2.07 | % | 2.26 | % | 4.40 | %(G) | 4.16 | %(G) | ||||||||||||||
Portfolio turnover rate | 5 | %(E) | 19 | % | 5 | % | 35 | % | 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 Fund. 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. |
(B) | Represents the period from commencement of operations (August 16, 2010) through March 31, 2011. |
(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 U.S. generally accepted accounting principles 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 purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
85 |
Financial Highlights (Continued)
Touchstone Total Return Bond Fund—Class C |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.18 | $ | 10.21 | $ | 10.05 | $ | 10.49 | $ | 10.12 | $ | 10.04 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.09 | 0.14 | 0.15 | 0.11 | 0.14 | 0.06 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.04 | 0.02 | 0.22 | (0.35 | ) | 0.42 | 0.09 | |||||||||||||||||
Total from investment operations | 0.13 | 0.16 | 0.37 | (0.24 | ) | 0.56 | 0.15 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.10 | ) | (0.19 | ) | (0.21 | ) | (0.19 | ) | (0.19 | ) | (0.07 | ) | ||||||||||||
Realized capital gains | — | — | — | (0.01 | ) | — | — | |||||||||||||||||
Total distributions | (0.10 | ) | (0.19 | ) | (0.21 | ) | (0.20 | ) | (0.19 | ) | (0.07 | ) | ||||||||||||
Net asset value at end of period | $ | 10.21 | $ | 10.18 | $ | 10.21 | $ | 10.05 | $ | 10.49 | $ | 10.12 | ||||||||||||
Total return(B) | 1.25 | %(C) | 1.60 | % | 3.75 | % | (2.33 | )% | 5.63 | % | 1.51 | %(C) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 2,562 | $ | 2,368 | $ | 1,634 | $ | 2,455 | $ | 3,257 | $ | 2,587 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 1.63 | %(D) | 1.65 | % | 1.65 | % | 1.65 | % | 1.65 | % | 1.65 | %(D) | ||||||||||||
Gross expenses | 2.25 | %(D) | 2.27 | % | 2.47 | % | 2.10 | % | 2.03 | % | 2.55 | %(D) | ||||||||||||
Net investment income | 1.71 | %(D) | 1.35 | % | 1.57 | % | 1.32 | % | 1.51 | % | 3.75 | %(D) | ||||||||||||
Portfolio turnover rate | 5 | %(C) | 19 | % | 5 | % | 35 | % | 79 | %(E) | 7 | %(C) |
(A) | Represents the period from commencement of operations (August 1, 2011) through September 30, 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 purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
86 |
Financial Highlights (Continued)
Touchstone Total Return Bond Fund—Class Y† |
Selected Data for a Share Outstanding Throughout Each Period†† |
Six Months | Period | Year | ||||||||||||||||||||||||||
Ended | Ended | Ended | ||||||||||||||||||||||||||
March 31 | September | March | ||||||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | 31, | |||||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | 2011 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.20 | $ | 10.24 | $ | 10.08 | $ | 10.52 | $ | 10.15 | $ | 9.86 | $ | 9.66 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income | 0.14 | 0.25 | 0.26 | 0.23 | 0.25 | 0.24 | 0.45 | |||||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.05 | 0.01 | 0.22 | (0.36 | ) | 0.42 | 0.30 | 0.21 | ||||||||||||||||||||
Total from investment operations | 0.19 | 0.26 | 0.48 | (0.13 | ) | 0.67 | 0.54 | 0.66 | ||||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.30 | ) | (0.32 | ) | (0.30 | ) | (0.30 | ) | (0.25 | ) | (0.46 | ) | ||||||||||||||
Realized capital gains | — | — | — | (0.01 | ) | — | — | — | ||||||||||||||||||||
Total distributions | (0.15 | ) | (0.30 | ) | (0.32 | ) | (0.31 | ) | (0.30 | ) | (0.25 | ) | (0.46 | ) | ||||||||||||||
Net asset value at end of period | $ | 10.24 | $ | 10.20 | $ | 10.24 | $ | 10.08 | $ | 10.52 | $ | 10.15 | $ | 9.86 | ||||||||||||||
Total return | 1.85 | %(B) | 2.51 | % | 4.84 | % | (1.32 | )% | 6.72 | % | 5.29 | %(B) | 6.97 | %(C) | ||||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 41,749 | $ | 39,751 | $ | 19,397 | $ | 19,635 | $ | 29,716 | $ | 17,810 | $ | 16,512 | ||||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||||||
Net expenses | 0.63 | %(D) | 0.65 | % | 0.61 | % | 0.62 | % | 0.58 | % | 0.48 | %(D) | 0.40 | % | ||||||||||||||
Gross expenses | 0.69 | %(D) | 0.70 | % | 0.68 | % | 0.71 | % | 0.70 | % | 1.13 | %(D) | 1.62 | % | ||||||||||||||
Net investment income | 2.71 | %(D) | 2.35 | % | 2.61 | % | 2.34 | % | 2.59 | % | 4.35 | %(D) | 4.46 | % | ||||||||||||||
Portfolio turnover rate | 5 | %(B) | 19 | % | 5 | % | 35 | % | 79 | %(E) | 7 | %(B) | 27 | % |
† | 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 Fund. 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. |
(B) | Not annualized. |
(C) | Includes adjustments in accordance with U.S. generally accepted accounting principles 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 purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
87 |
Financial Highlights (Continued)
Touchstone Total Return Bond Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | Period | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
March 31, | September | |||||||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011(A) | |||||||||||||||||||
Net asset value at beginning of period | $ | 10.20 | $ | 10.24 | $ | 10.08 | $ | 10.51 | $ | 10.14 | $ | 10.06 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.14 | 0.26 | 0.27 | 0.25 | 0.22 | 0.08 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.04 | 0.01 | 0.22 | (0.36 | ) | 0.46 | 0.09 | |||||||||||||||||
Total from investment operations | 0.18 | 0.27 | 0.49 | (0.11 | ) | 0.68 | 0.17 | |||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.31 | ) | (0.33 | ) | (0.31 | ) | (0.31 | ) | (0.09 | ) | ||||||||||||
Realized capital gains | — | — | — | (0.01 | ) | — | — | |||||||||||||||||
Total distributions | (0.15 | ) | (0.31 | ) | (0.33 | ) | (0.32 | ) | (0.31 | ) | (0.09 | ) | ||||||||||||
Net asset value at end of period | $ | 10.23 | $ | 10.20 | $ | 10.24 | $ | 10.08 | $ | 10.51 | $ | 10.14 | ||||||||||||
Total return | 1.82 | %(B) | 2.65 | % | 4.96 | % | (1.09 | )% | 6.81 | % | 1.70 | %(B) | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 149,192 | $ | 134,877 | $ | 116,404 | $ | 133,051 | $ | 148,341 | $ | 6,386 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.50 | %(C) | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | %(C) | ||||||||||||
Gross expenses | 0.61 | %(C) | 0.61 | % | 0.60 | % | 0.60 | % | 0.67 | % | �� | 1.21 | %(C) | |||||||||||
Net investment income | 2.84 | %(C) | 2.50 | % | 2.72 | % | 2.47 | % | 2.66 | % | 4.89 | %(C) | ||||||||||||
Portfolio turnover rate | 5 | %(B) | 19 | % | 5 | % | 35 | % | 79 | %(D) | 7 | %(B) |
(A) | Represents the period from commencement of operations (August 1, 2011) through September 30, 2011. |
(B) | Not annualized. |
(C) | Annualized. |
(D) | Portfolio turnover excludes the purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
88 |
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 | |||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | $ | 9.57 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.02 | 0.06 | 0.06 | 0.09 | 0.09 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.03 | (0.03 | ) | 0.03 | (0.04 | ) | (0.01 | ) | ||||||||||||
Total from investment operations | 0.05 | 0.03 | 0.09 | 0.05 | 0.08 | |||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | (0.07 | ) | (0.12 | ) | (0.13 | ) | (0.16 | ) | (0.09 | ) | ||||||||||
Net asset value at end of period | $ | 9.30 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||
Total return(B) | 0.49 | %(C) | 0.31 | % | 0.92 | % | 0.48 | % | 0.85 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000’s) | $ | 10,164 | $ | 10,675 | $ | 10,596 | $ | 32,088 | $ | 34,228 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.69 | %(D) | 0.69 | % | 0.69 | % | 0.69 | % | 0.69 | %(D) | ||||||||||
Gross expenses | 0.98 | %(D) | 0.99 | % | 0.93 | % | 0.83 | % | 1.19 | %(D) | ||||||||||
Net investment income | 0.40 | %(D) | 0.54 | % | 0.79 | % | 0.85 | % | 1.40 | %(D) | ||||||||||
Portfolio turnover rate | 89 | %(C) | 132 | % | 142 | % | 107 | %(E) | 169 | %(F) |
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 | |||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | $ | 9.57 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | — | (G) | — | (G) | 0.02 | 0.04 | 0.05 | |||||||||||||
Net realized and unrealized gains (losses) on investments | 0.02 | (0.02 | ) | 0.02 | (0.04 | ) | 0.01 | |||||||||||||
Total from investment operations | 0.02 | (0.02 | ) | 0.04 | — | 0.06 | ||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | (0.04 | ) | (0.07 | ) | (0.08 | ) | (0.11 | ) | (0.07 | ) | ||||||||||
Net asset value at end of period | $ | 9.30 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||
Total return(B) | 0.24 | %(C) | (0.19 | )% | 0.42 | % | (0.02 | )% | 0.62 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000’s) | $ | 9,109 | $ | 8,291 | $ | 11,272 | $ | 13,568 | $ | 11,517 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 1.19 | %(D) | 1.19 | % | 1.19 | % | 1.19 | % | 1.19 | %(D) | ||||||||||
Gross expenses | 1.56 | %(D) | 1.48 | % | 1.44 | % | 1.39 | % | 1.68 | %(D) | ||||||||||
Net investment income (loss) | (0.10 | )%(D) | 0.04 | % | 0.29 | % | 0.35 | % | 0.90 | %(D) | ||||||||||
Portfolio turnover rate | 89 | %(C) | 132 | % | 142 | % | 107 | %(E) | 169 | %(F) |
(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 purchases and sales of the Touchstone Short Duration Fixed Income Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
(F) | Portfolio turnover excludes the purchases and sales of the Old Mutual Dwight Short Term Fixed Income Fund and Fifth Third Short Term Bond Fund acquired on April 16, 2012 and September 10, 2012, respectively. If these transactions were included, portfolio turnover would have been higher. |
(G) | Less than $0.005 per share. |
See accompanying Notes to Financial Statements.
89 |
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 | |||||||||||||||||||
2016 | Year Ended September 30, | 30, | ||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | $ | 9.57 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.04 | 0.07 | 0.10 | 0.12 | 0.08 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.02 | (0.02 | ) | 0.01 | (0.05 | ) | 0.01 | |||||||||||||
Total from investment operations | 0.06 | 0.05 | 0.11 | 0.07 | 0.09 | |||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.14 | ) | (0.15 | ) | (0.18 | ) | (0.10 | ) | ||||||||||
Net asset value at end of period | $ | 9.30 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||
Total return | 0.62 | %(B) | 0.56 | % | 1.17 | % | 0.74 | % | 0.97 | %(B) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000’s) | $ | 241,442 | $ | 200,456 | $ | 244,885 | $ | 249,250 | $ | 190,515 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.44 | %(C) | 0.44 | % | 0.44 | % | 0.44 | % | 0.44 | %(C) | ||||||||||
Gross expenses | 0.52 | %(C) | 0.52 | % | 0.49 | % | 0.51 | % | 0.55 | %(C) | ||||||||||
Net investment income | 0.65 | %(C) | 0.79 | % | 1.04 | % | 1.10 | % | 1.65 | %(C) | ||||||||||
Portfolio turnover rate | 89 | %(B) | 132 | % | 142 | % | 107 | %(D) | 169 | %(E) |
Touchstone Ultra Short Duration Fixed Income Fund—Class Z |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||
2016 | Year Ended September 30, | |||||||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value at beginning of period | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | $ | 9.58 | $ | 9.68 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.03 | 0.05 | 0.08 | 0.09 | 0.14 | 0.15 | ||||||||||||||||||
Net realized and unrealized gains (losses) on investment | 0.02 | (0.02 | ) | 0.01 | (0.04 | ) | 0.06 | (0.04 | ) | |||||||||||||||
Total from investment operations | 0.05 | 0.03 | 0.09 | 0.05 | 0.20 | 0.11 | ||||||||||||||||||
Distributions from: | ||||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.12 | ) | (0.13 | ) | (0.16 | ) | (0.22 | ) | (0.21 | ) | ||||||||||||
Net asset value at end of period | $ | 9.30 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | $ | 9.58 | ||||||||||||
Total return | 0.49 | %(B) | 0.31 | % | 0.91 | % | 0.52 | % | 2.10 | % | 1.12 | % | ||||||||||||
Ratios and supplemental data: | ||||||||||||||||||||||||
Net assets at end of period (000’s) | $ | 224,852 | $ | 304,553 | $ | 401,851 | $ | 381,554 | $ | 338,669 | $ | 346,131 | ||||||||||||
Ratio to average net assets: | ||||||||||||||||||||||||
Net expenses | 0.69 | %(C) | 0.69 | % | 0.69 | % | 0.65 | % | 0.64 | % | 0.69 | % | ||||||||||||
Gross expenses | 0.79 | %(C) | 0.76 | % | 0.76 | % | 0.73 | % | 0.73 | % | 0.78 | % | ||||||||||||
Net Investment Income | 0.40 | %(C) | 0.54 | % | 0.79 | % | 0.89 | % | 1.45 | % | 1.39 | % | ||||||||||||
Portfolio turnover rate | 89 | %(B) | 132 | % | 142 | % | 107 | %(D) | 169 | %(E) | 144 | % |
(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 purchases and sales of the Touchstone Short Duration Fixed Income Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
(E) | Portfolio turnover excludes the purchases and sales of the Old Mutual Dwight Short Term Fixed Income Fund and Fifth Third Short Term Bond Fund acquired on April 16, 2012 and September 10, 2012, respectively. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
90 |
Financial Highlights (Continued)
Touchstone Ultra Short Duration Fixed Income Fund—Institutional Class |
Selected Data for a Share Outstanding Throughout Each Period |
Six Months Ended | Period Ended | |||||||||||||||||||
March 31, 2016 | Year Ended September 30, | September 30, | ||||||||||||||||||
(Unaudited) | 2015 | 2014 | 2013 | 2012(A) | ||||||||||||||||
Net asset value at beginning of period | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | $ | 9.57 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.04 | 0.08 | 0.10 | 0.14 | 0.09 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.02 | (0.02 | ) | 0.01 | (0.07 | ) | — | (B) | ||||||||||||
Total from investment operations | 0.06 | 0.06 | 0.11 | 0.07 | 0.09 | |||||||||||||||
Distributions from: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.15 | ) | (0.15 | ) | (0.18 | ) | (0.10 | ) | ||||||||||
Net asset value at end of period | $ | 9.30 | $ | 9.32 | $ | 9.41 | $ | 9.45 | $ | 9.56 | ||||||||||
Total return | 0.64 | %(C) | 0.61 | % | 1.22 | % | 0.78 | % | 0.99 | %(C) | ||||||||||
Ratios and supplemental data: | ||||||||||||||||||||
Net assets at end of period (000’s) | $ | 105,037 | $ | 49,389 | $ | 50,853 | $ | 59,662 | $ | 6,697 | ||||||||||
Ratio to average net assets: | ||||||||||||||||||||
Net expenses | 0.39 | %(D) | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | %(D) | ||||||||||
Gross expenses | 0.46 | %(D) | 0.48 | % | 0.48 | % | 0.52 | % | 1.23 | %(D) | ||||||||||
Net investment income | 0.70 | %(D) | 0.84 | % | 1.09 | % | 1.15 | % | 1.70 | %(D) | ||||||||||
Portfolio turnover rate | 89 | %(C) | 132 | % | 142 | % | 107 | %(E) | 169 | %(F) |
(A) | Represents the period from commencement of operations (April 16, 2012) through September 30, 2012. |
(B) | Less than $0.005 per share. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of the Touchstone Short Duration Fixed Income Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher. |
(F) | Portfolio turnover excludes the purchases and sales of the Old Mutual Dwight Short Term Fixed Income Fund and Fifth Third Short Term Bond Fund acquired on April 16, 2012 and September 10, 2012, respectively. If these transactions were included, portfolio turnover would have been higher. |
See accompanying Notes to Financial Statements.
91 |
March 31, 2016 (Unaudited)
1. Organization
The Touchstone Funds Group Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust pursuant to an Agreement and Declaration of Trust dated October 25, 1993. The Trust consists of eleven funds (individually, a “Fund,” and collectively, the “Funds”):
Touchstone Arbitrage Fund (“Arbitrage Fund”)
Touchstone Emerging Markets Equity Fund (“Emerging Markets Equity 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 Small Cap Fund (“Small Cap Fund”) (formerly known as Touchstone 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 diversified, with the exception of the Arbitrage Fund, the Merger Arbitrage Fund, the Sands Capital Select Growth Fund and the Small Cap Fund, which are non-diversified.
The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:
Institutional | |||||
Class A | Class C | Class Y | Class Z | Class | |
Arbitrage Fund | X | X | X | X | |
Emerging Markets Equity Fund | X | X | X | X | |
Merger Arbitrage Fund | X | X | X | X | |
Mid Cap Fund | X | X | X | X | X |
Mid Cap Value Fund | X | X | X | X | |
Premium Yield Equity Fund | X | X | X | ||
Sands Capital Select Growth Fund | X | X | X | X | |
Small Cap Fund | X | X | X | X | |
Small Cap Value Fund | X | X | X | X | |
Total Return Bond Fund | X | X | X | X | |
Ultra Short Duration Fixed Income Fund | X | X | X | X | X |
The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment goals, policies, and strategies along with information on the classes of shares currently being offered.
92 |
Notes to Financial Statements (Unaudited) (Continued)
2. Significant Accounting Policies
The following is a summary of the Funds’ significant accounting policies:
Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.
Security valuation and fair value measurements — U.S. generally accepted accounting principles (“U.S. GAAP”) define fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their 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 their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
• | Level 1 – | quoted prices in active markets for identical securities |
• | Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – | significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The aggregate value by input level, as of March 31, 2016, for each Fund’s investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, if applicable, is included in the Fund’s Portfolio of Investments, which also includes a breakdown of the Fund’s investments by geographic, portfolio or sector allocation. The Funds did not hold any Level 3 categorized securities during the six months ended March 31, 2016.
Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy. All transfers in and out of the levels are recognized at the value at the end of the period. During the six months ended March 31, 2016, 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 reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”) or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Options are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price and are categorized in Level 1. Shares of mutual funds in which the Funds invest are valued at their respective net asset values (“NAV”) as reported by the underlying funds (“Underlying Funds”) and are categorized in Level 1.
Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms
93 |
Notes to Financial Statements (Unaudited) (Continued)
and conditions, among others, and are generally categorized in Level 2. Debt securities with remaining maturities of 60 days or less maybe valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.
Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of regular trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available and categorized in Level 2.
Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV.
The Funds may use fair value pricing under the following circumstances, among others:
• | If the value of a security has been materially affected by events occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded. |
• | If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. |
• | If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading. |
• | If the validity of market quotations is not reliable. |
Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Funds’ Board of Trustees and are generally categorized in Level 3.
Investment companies — Certain Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter. An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund’s fees and expenses.
Securities sold short — The Funds may engage in selling securities short, which obligates 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, 2016, the Arbitrage Fund and Merger Arbitrage Fund held securities sold short with a fair
94 |
Notes to Financial Statements (Unaudited) (Continued)
value of $26,888,141 and $31,168,531, respectively, and had securities with a fair value of $43,589,728 and $60,416,250, respectively, held as collateral and cash collateral of $20,402,426 and $3,596,109, respectively, for securities sold short.
Options — The Funds may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Funds intend to purchase), against fluctuations in fair value caused by changes in prevailing market interest rates or foreign currency exchange rates and against changes in overall equity market volatility. In addition, the Funds may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Funds’ option strategy primarily focuses on the use of writing call options on equity indexes. When the Funds write or purchase an option, an amount equal to the premium received or paid by the Funds is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Funds on the expiration date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Funds have realized a gain or loss on investment transactions. The Funds, as writers of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bear the market risk of an unfavorable change in the price of the security underlying the written option. The Funds, as purchasers of an option, bear the risk that the counterparties to the option may not have the ability to meet the terms of the option contracts. There is minimal counterparty credit risk involved in entering into option contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default. Options are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price. As of March 31, 2016, the Funds did not hold any options.
Warrants — The Funds can invest in warrants and stock purchase rights of companies of any market capitalization. A warrant gives the company the right to buy stock, typically from the issuer. The warrant specifies the amount of underlying stock, the purchase (or “exercise”) price, and the date the warrant expires. Certain warrants may permit, without legal obligation, net settlement for stock or cash. The Funds have no obligation to exercise the warrant and buy the stock.
Foreign currency translation — The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
(1) market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and
(2) purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing the Fund’s total return, and the potential for losses in excess of the Fund’s initial investment.
95 |
Notes to Financial Statements (Unaudited) (Continued)
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, 2016, the Arbitrage Fund and the Merger Arbitrage 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.
Real Estate Investment Trusts – The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative underperformance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.
Master Limited Partnership – The Funds may invest in Master Limited Partnership (“MLP”) common units that represent limited partnership interests in the MLP. Common units are generally listed and traded on U.S. securities exchanges or OTC with their value fluctuating predominantly based on the success of the MLP. Unlike owners of common stock of a corporation, owners of MLP common units have limited voting rights and have no ability to annually elect directors. MLPs generally distribute all available cash flow (cash flow from operations less maintenance capital expenditures) in the form of quarterly distributions. Common unit holders have first priority to receive quarterly cash distributions up to the minimum quarterly distribution and have arrearage rights. In the event of liquidation, common unit holders have preference over subordinated units, but not debt holders or preferred unit holders, to the remaining assets of the MLP.
Pay-In-Kind (“PIK”) Bonds – PIK bonds are securities that, at the issuer’s option, pay interest in either cash or additional securities for a specified period. PIK bonds, like zero coupon bonds, are designed to give an issuer flexibility in managing cash flow. PIK bonds are expected to reflect the market value of the underlying debt plus an amount representing accrued interest since the last payment. PIK bonds are usually less volatile than zero coupon bonds, but more volatile than cash pay securities.
Derivative instruments and hedging activities — The Arbitrage Fund and the Merger Arbitrage Fund may enter into an International Swaps and Derivatives Associations, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs over-the-counter (“OTC”) derivatives and foreign exchange contracts, and typically contains, among other things, collateral posting terms and master netting provisions in the event of a default or termination. Under an ISDA Master Agreement, a party may, under certain circumstances, offset with the counterparty certain derivative financial instrument’s payables or receivables with collateral held or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting). These default events include bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset.
When entering into a derivative transaction, a Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange traded and centrally cleared
96 |
Notes to Financial Statements (Unaudited) (Continued)
derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.
Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event a Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.
For financial reporting purposes, a Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.
As of March 31, 2016, the Funds’ assets and liabilities that were subject to a MNA on a gross basis were as follows:
Assets | Liabilities | |||||||
Merger Arbitrage Fund | ||||||||
Forward Foreign Currency Contracts | $ | — | $ | 338,405 |
The following table presents the Funds’ liabilities net of amounts available for offset under MNA and of the related collateral pledged by the Fund as of March 31, 2016:
Gross | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
Available | ||||||||||||||||||||||||
for Offset in | ||||||||||||||||||||||||
Gross | Statement | Non- | ||||||||||||||||||||||
Amount of | of Assets | Cash | Cash | |||||||||||||||||||||
Recognized | and | Collateral | Collateral | Net | ||||||||||||||||||||
Fund | Counterparty | Derivative Type | Liabilities | Liabilities | Pledged | Pledged | Amount(A) | |||||||||||||||||
Merger Arbitrage Fund | Brown | Forward | ||||||||||||||||||||||
Brothers | Foreign | |||||||||||||||||||||||
Harriman | Currency | |||||||||||||||||||||||
Contracts | $ | 338,405 | $ | — | $ | — | $ | — | $ | 338,405 |
(A) | Net amount represents the net amount payable due to the counterparty in the event of default. |
The following table sets forth the fair value of the Funds’ derivative financial instruments by primary risk exposure as of March 31, 2016:
Fair Value of Derivative Investments | ||||||||||
As of March 31, 2016 | ||||||||||
Derivatives not accounted for as hedging | Asset | Liability | ||||||||
Fund | instruments under ASC 815 | Derivatives | Derivatives | |||||||
Arbitrage Fund | Forward Foreign Currency Contracts* | $ | — | $ | (276,571 | ) | ||||
Merger Arbitrage Fund | Forward Foreign Currency Contracts* | — | (338,405 | ) |
* Statements of Assets and Liabilities Location: Unrealized depreciation on forward foreign currency contracts.
97 |
Notes to Financial Statements (Unaudited) (Continued)
The following table sets forth the effects of the Funds’ derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended March 31, 2016:
The Effect of Derivative Investments on the Statement of Operations | ||||||||||
for the Six Months Ended March 31, 2016 | ||||||||||
Change in | ||||||||||
Unrealized | ||||||||||
Realized Gain | Appreciation | |||||||||
Derivatives not accounted for as hedging | (Loss) | (Depreciation) | ||||||||
Fund | instruments under ASC 815 | on Derivatives | on Derivatives | |||||||
Arbitrage Fund | Forward Foreign Currency Contracts* | $ | 66 | $ | (276,571 | ) | ||||
Purchased Options-Equity Contracts** | (109,274 | ) | 229,356 | |||||||
Written Options-Equity Contracts*** | 157,041 | 321,759 | ||||||||
Merger Arbitrage Fund | Forward Foreign Currency Contracts* | 70 | (338,405 | ) | ||||||
Purchased Options-Equity Contracts** | (191,880 | ) | 402,738 | |||||||
Written Options-Equity Contracts*** | 275,757 | 564,993 |
*Statements of Operations Location: Net realized gains on foreign currency transactions and net change in unrealized appreciation (depreciation) on foreign currency transactions, respectively.
** Statements of Operations Location: Net realized gains (losses) on investments and net change in unrealized appreciation (depreciation) on investments, respectively.
*** Statements of Operations Location: Net realized gains on written options and net change in unrealized appreciation (depreciation) on written options, respectively.
For the six months ended March 31, 2016, the average quarterly balances of outstanding derivative financial instruments was as follows:
Merger | ||||||||
Arbitrage | Arbitrage | |||||||
Fund | Fund | |||||||
Equity contracts: | ||||||||
Purchased Options - Cost | $ | 192,104 | $ | 337,325 | ||||
Written Options - Premiums received | $ | 104,694 | $ | 183,838 | ||||
Forward foreign currency contracts: | ||||||||
Average number of contracts | 2 | 2 | ||||||
Average U.S. dollar amount purchased | $ | 3,407,919 | $ | 4,111,081 |
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. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved investment vehicle. The approved investment vehicle is subject to market risk.
98 |
Notes to Financial Statements (Unaudited) (Continued)
As of March 31, 2016, the following Funds loaned securities and received collateral as follows:
Market | Market | |||||||||||||
Value of | Value of | |||||||||||||
Securities | Collateral | |||||||||||||
Fund | Security Type | Loaned* | Receiver** | Net Amount | ||||||||||
Emerging Markets Equity Fund | Common Stock | $ | 30,733 | $ | 31,755 | $ | 1,022 | |||||||
Mid Cap Fund | Common Stock | 3,639,444 | 3,692,861 | 53,417 | ||||||||||
Mid Cap Value Fund | Common Stock | 10,253,281 | 10,647,766 | 394,485 | ||||||||||
Sands Capital Select Growth Fund | Common Stock | 161,129,553 | 162,942,959 | 1,813,406 | ||||||||||
Small Cap Fund | Common Stock | 13,522,834 | 13,803,365 | 280,531 | ||||||||||
Small Cap Value Fund | Common Stock | 1,978,577 | 2,065,343 | 86,766 | ||||||||||
Total Return Bond Fund | Corporate Bond | 189,415 | 197,943 | 8,528 |
* The remaining contractual maturity is overnight for all securities.
** Gross amount of recognized liabilities for securities lending is included in the Statements of Assets and Liabilities.
All cash collateral is received, held, and administered by the Funds’ custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral.
Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on daily trading volumes, float, short-term interest rates and market liquidity. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.
Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.
When-issued or delayed delivery transactions — Each Fund may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will set aside liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When the Fund has sold a security on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.
Share valuation — The NAV per share of each class of shares of each Fund is calculated daily by dividing the total value of a Fund’s assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the Funds (except the 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 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
99 |
Notes to Financial Statements (Unaudited) (Continued)
the offering price). There is no sales load on purchases of $1 million or more of Class A shares. The maximum offering price per share of Classes C, Y, Z, and Institutional Class shares of the Funds is equal to the NAV per share.
The redemption price per share of each class of shares of the Funds is generally equal to the NAV per share. However, Class A redemptions that were part of a no-load $1 million subscription may be subject to a contingent deferred sales charge (“CDSC”) of up to 1.00% if redeemed within a one-year period from the date of purchase. Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, if redeemed within a one-year period from the date of purchase.
Investment income — Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted. 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 Arbitrage Fund, Emerging Markets Equity Fund, Merger Arbitrage Fund, Mid Cap Fund, and Small Cap Fund distribute their income, if any, annually, as a dividend to shareholders. The Mid Cap Value Fund, Sands Capital Select Growth Fund, and Small Cap Value Fund declare and distribute their income, if any, quarterly, as a dividend to shareholders. The Premium Yield Equity Fund and Total Return Bond Fund declare and distribute their income, if any, monthly, as a dividend to shareholders. The Ultra Short Duration Fixed Income Fund declares its income, if any, daily, and distributes such income monthly, as a dividend to shareholders. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the Funds’ net investment income from investments in Underlying Funds is affected by the timing of dividend declarations by the Underlying Funds.
Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class-specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all the Funds in the Trust, and, if applicable, Touchstone Institutional Funds Trust, Touchstone Investment Trust, Touchstone Strategic Trust, Touchstone Tax-Free Trust, and Touchstone Variable Series Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.
Security transactions — Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates — The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
100 |
Notes to Financial Statements (Unaudited) (Continued)
3. | Investment Transactions |
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended March 31, 2016:
Emerging | Merger | |||||||||||||||
Arbitrage | Markets Equity | Arbitrage | Mid Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 216,654,786 | $ | 12,881,491 | $ | 272,834,469 | $ | 17,893,317 | ||||||||
Proceeds from sales and maturities | $ | 242,694,405 | $ | 266,527,072 | $ | 316,093,321 | $ | 55,589,544 |
Mid Cap | Premium Yield | Sands Capital | ||||||||||||||
Value | Equity | Select Growth | Small Cap | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Purchases of investment securities | $ | 62,508,965 | $ | 28,747,379 | $ | 1,321,578,071 | $ | 45,241,347 | ||||||||
Proceeds from sales and maturities | $ | 89,827,582 | $ | 62,581,044 | $ | 2,343,370,079 | $ | 154,442,782 |
Small Cap | Total Return | Ultra Short | ||||||||||||||
Value | Bond | Duration Fixed | ||||||||||||||
Fund | Fund | Income Fund | ||||||||||||||
Purchases of investment securities | $ | 20,383,415 | $ | 26,218,584 | $ | 391,745,272 | ||||||||||
Proceeds from sales and maturities | $ | 29,284,161 | $ | 7,913,673 | $ | 371,039,674 |
For the six months ended March 31, 2016, purchases and proceeds from sales and maturities in U.S. Government Securities were $4,236,594 and $1,888,159, respectively, for the Total Return Bond Fund and $57,967,711 and $44,916,559, respectively, for the Ultra Short Duration Fixed Income Fund.
4. | Transactions with Affiliates and Other Related Parties |
Certain officers of the Trust are also officers ofTouchstone Advisors, Inc. (the “Advisor”), Touchstone Securities, Inc. (the “Underwriter”), or BNY Mellon Investment Servicing (U.S.) Inc. (“BNY Mellon”), the Sub-Administrator and Transfer Agent to the Funds. Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned, indirect subsidiaries of Western & Southern Financial Group, Inc. (“Western & Southern”).
On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $86,636 for the six months ended March 31, 2016.
101 |
Notes to Financial Statements (Unaudited) (Continued)
MANAGEMENT & EXPENSE LIMITATION AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under terms of an advisory agreement (the “Advisory Agreement”). Under the Advisory Agreement, each Fund pays the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets of each Fund as shown in the table below.
Arbitrage Fund | 1.05% on the first $500 million |
1.00% on the next $500 million | |
0.95% on such assets over $1 billion | |
Emerging Markets Equity Fund | 1.05% on the first $200 million |
1.00% on the next $200 million | |
0.90% on such assets over $400 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% on such assets over $1 billion | |
Mid Cap Value Fund | 0.85% on the first $100 million |
0.80% on the next $300 million | |
0.75% on such assets over $400 million | |
Premium Yield Equity Fund | 0.70% on the first $100 million |
0.65% on such assets over $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% on such assets over $2 billion | |
Small Cap Fund | 0.85% |
Small Cap Value Fund | 0.90% |
Total Return Bond Fund | 0.35% |
Ultra Short Duration Fixed Income Fund | 0.25% |
In addition to the base advisory fee shown above for the Sands Capital Select Growth Fund, a performance fee adjustment will be added to or subtracted from the base advisory fee 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 | |||||
Sands Capital Select Growth Fund | Russell1000® Growth Index | +/-2.50% | +/-0.15% | 1.00% / 0.55% |
For the six months ended March 31, 2016, the Advisor’s base fee was decreased by $4,174,696 as a result of the performance fee adjustment.
102 |
Notes to Financial Statements (Unaudited) (Continued)
The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):
Russell Implementation Services, Inc.* | The London Company |
Emerging Markets Equity Fund | Mid Cap Fund |
Small Cap Fund | |
DePrince, Race & Zollo, Inc. | |
Small Cap Value Fund | Longfellow Investment Management Co. |
Arbitrage Fund | |
EARNEST Partners LLC | Merger Arbitrage Fund |
Total Return Bond Fund | |
Miller/Howard Investments, Inc. | |
Fort Washington Investment Advisors, Inc.** | Premium Yield Equity Fund |
Ultra Short Duration Fixed Income Fund | |
Sands Capital Management, LLC | |
LMCG Investments, Inc. | Sands Capital Select Growth Fund |
Mid Cap Value Fund |
*Effective February 20, 2016, Russell Implementation Services, Inc. became the interim sub-advisor of the Emerging Markets Equity Fund; prior to February 20, 2016, AGF Investments America, Inc. was the sub-advisor.
**Affiliate of the Advisor and wholly-owned indirect subsidiary of Western Southern.
The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.
The Advisor entered into an expense limitation agreement (the “Expense Limitation Agreement”) to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transactions and investment related expenses; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not incurred in the ordinary course of business. The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to separately waive class-level expenses, advisory fees and administration fees, and to reimburse expenses in order to maintain the following expense limitations for the Funds:
Institutional | ||||||||||||||||||||
Class A | Class C | Class Y | Class Z | Class | ||||||||||||||||
Arbitrage Fund | 1.68 | % | 2.43 | % | 1.43 | % | — | 1.28 | % | |||||||||||
Emerging Markets Equity Fund | 1.69 | % | 2.44 | % | 1.44 | % | — | 1.29 | % | |||||||||||
Merger Arbitrage Fund | 1.68 | % | 2.43 | % | 1.43 | % | — | 1.28 | % | |||||||||||
Mid Cap Fund | 1.24 | % | 1.99 | % | 0.99 | % | 1.24 | % | 0.92 | % | ||||||||||
Mid Cap Value Fund* | 1.27 | % | 2.02 | % | 1.02 | % | — | 0.89 | % | |||||||||||
Premium Yield Equity Fund | 1.20 | % | 1.95 | % | 0.95 | % | — | — | ||||||||||||
Small Cap Fund | 1.38 | % | 2.13 | % | 1.13 | % | — | 1.05 | % | |||||||||||
Small Cap Value Fund | 1.38 | % | 2.13 | % | 1.13 | % | — | 0.98 | % | |||||||||||
Total Return Bond Fund** | 0.85 | % | 1.60 | % | 0.60 | % | — | 0.50 | % | |||||||||||
Ultra Short Duration Fixed Income Fund | 0.69 | % | 1.19 | % | 0.44 | % | 0.69 | % | 0.39 | % |
*Prior to January 29, 2016, the expense limitation for Classes A, C and Y shares were 1.29%, 2.04% and 1.04%, respectively.
**Prior to January 29, 2016, the expense limitation for Classes A, C and Y shares were 0.90%, 1.65% and 0.65%, respectively.
These expense limitations will remain in effect for all Funds through at least January 29, 2017, but can be terminated by a vote of the Board of Trustees of the Trust if it deems the termination to be beneficial to the Funds’ shareholders.
103 |
Notes to Financial Statements (Unaudited) (Continued)
The Advisor has agreed to limit certain Funds’ other operating expenses (“Other Expenses”) to the following levels which will remain in effect though at least January 29, 2017.
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, 2016, the Advisor or its affiliates waived investment advisory fees and administration fees or reimbursed expenses, including distribution fees of the Funds, as follows:
Other | ||||||||||||||||
Investment | Operating | |||||||||||||||
Advisory | Administration | Expenses | ||||||||||||||
Fees | Fees | Reimbursed/ | ||||||||||||||
Waived | Waived | Waived | Total | |||||||||||||
Arbitrage Fund | $ | — | $ | — | $ | 18,074 | $ | 18,074 | ||||||||
Emerging Markets Equity Fund | 87,763 | 48,234 | 69,653 | 205,650 | ||||||||||||
Merger Arbitrage Fund | — | — | 6,297 | 6,297 | ||||||||||||
Mid Cap Fund | — | 98,016 | 273,888 | 371,904 | ||||||||||||
Mid Cap Value Fund | — | 165,696 | 49,281 | 214,977 | ||||||||||||
Premium Yield Equity Fund | — | — | 72,824 | 72,824 | ||||||||||||
Sands Capital Select Growth Fund | — | — | 793,856 | 793,856 | ||||||||||||
Small Cap Fund | — | — | 52,533 | 52,533 | ||||||||||||
Small Cap Value Fund | 14,452 | 38,268 | 36,107 | 88,827 | ||||||||||||
Total Return Bond Fund | — | 41,317 | 64,959 | 106,276 | ||||||||||||
Ultra Short Duration Fixed Income Fund | — | 115,027 | 155,807 | 270,834 |
Under the terms of the Expense Limitation Agreement, the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation or assumed expenses for the Funds. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount in effect at the time of the waiver or reimbursement.
As of March 31, 2016, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:
Expiration | Expiration | Expiration | Expiration | |||||||||||||||||
Fund | September 30, 2016 | September 30, 2017 | September 30, 2018 | September 30, 2019 | Total | |||||||||||||||
Arbitrage Fund | $ | — | $ | 1,355 | $ | 2,350 | $ | 4,685 | $ | 8,390 | ||||||||||
Emerging Markets Equity Fund | — | 67,176 | 117,715 | 195,982 | 380,873 | |||||||||||||||
Mid Cap Fund | 256,834 | 380,034 | 632,713 | 314,877 | 1,584,458 | |||||||||||||||
Mid Cap Value Fund | 248,780 | 328,349 | 411,352 | 198,104 | 1,186,585 | |||||||||||||||
Premium Yield Equity Fund | 45,482 | 10,470 | 28,340 | 37,497 | 121,789 | |||||||||||||||
Sands Capital Select Growth Fund | 1,593,217 | 1,033,092 | 946,969 | 793,856 | 4,367,134 | |||||||||||||||
Small Cap Fund | 789,388 | 243,573 | — | 19,142 | 1,052,103 | |||||||||||||||
Small Cap Value Fund | 130,886 | 148,793 | 144,541 | 70,038 | 494,258 | |||||||||||||||
Total Return Bond Fund | 163,756 | 143,600 | 170,094 | 92,359 | 569,809 | |||||||||||||||
Ultra Short Duration Fixed Income Fund | 470,719 | 456,994 | 465,366 | 243,802 | 1,636,881 |
The Advisor did not recoup any amounts it previously waived or reimbursed during the six months ended March 31, 2016.
104 |
Notes to Financial Statements (Unaudited) (Continued)
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; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.
For its services, the Advisor’s annual administrative fee is:
0.145% on the first $20 billion of the aggregate average daily net assets;
0.11% on the next $10 billion of aggregate average daily net assets;
0.09% on the next $10 billion of aggregate average daily net assets; and
0.07% on the aggregate average daily net assets over $40 billion.
The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.
The Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.
The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.
PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS
The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares. Under the Class C plan, each Fund (except the 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 January 30, 2017. 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.
105 |
Notes to Financial Statements (Unaudited) (Continued)
UNDERWRITING AGREEMENT
The Underwriter is the Funds’ principal underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting Agreement between the Trust and the Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of Class A shares of the Funds listed below during the six months ended March 31, 2016:
Fund | Amount | |||
Arbitrage Fund | $ | 235 | ||
Emerging Markets Equity Fund | 82 | |||
Merger Arbitrage Fund | 124 | |||
Mid Cap Fund | 9,765 | |||
Mid Cap Value Fund | 913 | |||
Premium Yield Equity Fund | 2,037 | |||
Sands Capital Select Growth Fund | 3,673 | |||
Small Cap Fund | 684 | |||
Small Cap Value Fund | 485 | |||
Total Return Bond Fund | 274 | |||
Ultra Short Duration Fixed Income Fund | 642 |
In addition, the Underwriter collected CDSC on the redemption of Class C shares of the Funds listed below during the six months ended March 31, 2016:
Fund | Amount | |||
Emerging Markets Equity Fund | $ | 2 | ||
Mid Cap Fund | 1,077 | |||
Premium Yield Equity Fund | 94 | |||
Sands Capital Select Growth Fund | 95 | |||
Small Cap Fund | 130 | |||
Ultra Short Duration Fixed Income Fund | 46 |
5. Federal Tax Information
Federal income tax — It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. It is each Fund’s policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Fund’s intention to declare and pay as dividends in each calendar year at least 98% of its investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid for the years ended September 30, 2015 and 2014 are as follows:
Arbitrage | Emerging Markets | |||||||||||||||
Fund | Equity Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
From ordinary income | $ | — | $ | — | $ | 3,401,511 | $ | 4,192,683 | ||||||||
From long-term capital gains | 288,475 | — | — | — | ||||||||||||
Total distributions | $ | 288,475 | $ | — | $ | 3,401,511 | $ | 4,192,683 |
106 |
Notes to Financial Statements (Unaudited) (Continued)
Merger Arbitrage | Mid Cap | Mid Cap | ||||||||||||||||||||||
Fund | Fund | Value 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, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
From ordinary income | $ | — | $ | 24,102,036 | $ | 868,044 | $ | 747,154 | $ | 11,660,373 | $ | 6,818,543 | ||||||||||||
From long-term capital gains | 1,566,064 | — | — | — | 4,873,774 | 8,876,667 | ||||||||||||||||||
Total distributions | $ | 1,566,064 | $ | 24,102,036 | $ | 868,044 | $ | 747,154 | $ | 16,534,147 | $ | 15,695,210 |
Premium Yield | Sands Capital | Small Cap | ||||||||||||||||||||||
Equity Fund | Select Growth Fund | 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, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
From ordinary income | $ | 5,326,219 | $ | 6,872,067 | $ | — | $ | 13,643,843 | $ | 4,878,943 | $ | 14,861,071 | ||||||||||||
From long-term capital gains | 8,901,766 | — | 297,931,608 | 28,752,022 | 55,124,275 | 12,211,364 | ||||||||||||||||||
Total distributions | $ | 14,227,985 | $ | 6,872,067 | $ | 297,931,608 | $ | 42,395,865 | $ | 60,003,218 | $ | 27,072,435 |
Small Cap | Total Return | Ultra Short Duration | ||||||||||||||||||||||
Value Fund | Bond Fund | Fixed Income 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, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||
From ordinary income | $ | 1,186,997 | $ | 953,920 | $ | 5,107,573 | $ | 4,871,768 | $ | 8,549,313 | $ | 10,124,310 | ||||||||||||
From long-term capital gains | 2,819,183 | — | — | — | — | — | ||||||||||||||||||
Total distributions | $ | 4,006,180 | $ | 953,920 | $ | 5,107,573 | $ | 4,871,768 | $ | 8,549,313 | $ | 10,124,310 |
The following information is computed on a tax basis for each item as of September 30, 2015:
Emerging | ||||||||||||
Arbitrage | Markets Equity | Merger | ||||||||||
Fund | Fund | Arbitrage Fund | ||||||||||
Tax cost of portfolio investments | $ | 134,058,187 | $ | 326,755,593 | $ | 243,845,938 | ||||||
Gross unrealized appreciation | 1,332,745 | 14,557,138 | 3,264,216 | |||||||||
Gross unrealized depreciation | (3,529,833 | ) | (79,348,232 | ) | (5,990,424 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | (2,197,088 | ) | (64,791,094 | ) | (2,726,208 | ) | ||||||
Net unrealized appreciation (depreciation) on written options | (321,759 | ) | — | (564,993 | ) | |||||||
Net unrealized appreciation (depreciation) on securities sold short | 723,257 | — | 121,579 | |||||||||
Net unrealized appreciation (depreciation) on foreign currency transactions | — | (40,365 | ) | — | ||||||||
Accumulated capital losses | — | (44,093,212 | ) | — | ||||||||
Qualified late-year losses | — | — | (1,694,184 | ) | ||||||||
Other temporary differences | — | (4,170 | ) | — | ||||||||
Undistributed ordinary income | 181,750 | 2,573,140 | — | |||||||||
Undistributed capital gains | 346,056 | — | — | |||||||||
Accumulated deficit | $ | (1,267,784 | ) | $ | (106,355,701 | ) | $ | (4,863,806 | ) |
107 |
Notes to Financial Statements (Unaudited) (Continued)
Premium | Sands Capital | |||||||||||||||
Mid Cap Value | Yield Equity | Select Growth | ||||||||||||||
Mid Cap Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 686,483,595 | $ | 347,594,916 | $ | 178,267,407 | $ | 3,715,197,547 | ||||||||
Gross unrealized appreciation | 58,606,159 | 36,994,668 | 10,170,405 | 1,834,649,759 | ||||||||||||
Gross unrealized depreciation | (46,633,135 | ) | (32,749,577 | ) | (17,325,170 | ) | (258,320,737 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 11,973,024 | 4,245,091 | (7,154,765 | ) | 1,576,329,022 | |||||||||||
Accumulated capital losses | (123,848,001 | ) | — | — | — | |||||||||||
Qualified late-year losses | (38,973 | ) | — | — | (21,615,887 | ) | ||||||||||
Undistributed ordinary income | — | 3,758,126 | — | — | ||||||||||||
Undistributed capital gains | — | 16,029,978 | 8,682,989 | 385,268,540 | ||||||||||||
Accumulated earnings (deficit) | $ | (111,913,950 | ) | $ | 24,033,195 | $ | 1,528,224 | $ | 1,939,981,675 |
Ultra Short | ||||||||||||||||
Total | Duration | |||||||||||||||
Small Cap | Small Cap Value | Return Bond | Fixed Income | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
Tax cost of portfolio investments | $ | 710,193,303 | $ | 74,519,483 | $ | 177,847,324 | $ | 584,752,017 | ||||||||
Gross unrealized appreciation | 136,379,483 | 1,049,907 | 2,899,802 | 1,329,165 | ||||||||||||
Gross unrealized depreciation | (92,607,472 | ) | (13,767,853 | ) | (2,377,613 | ) | (3,921,880 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 43,772,011 | (12,717,946 | ) | 522,189 | (2,592,715 | ) | ||||||||||
Accumulated capital losses | — | (4,388,796 | ) | (1,341,777 | ) | (25,706,968 | ) | |||||||||
Undistributed ordinary income | 12,992,025 | 39,241 | 32,933 | 564,557 | ||||||||||||
Other temporary differences | — | — | — | (102,111 | ) | |||||||||||
Undistributed capital gains | 65,053,298 | 1,858,489 | — | — | ||||||||||||
Accumulated earnings (deficit) | $ | 121,817,334 | $ | (15,209,012 | ) | $ | (786,655 | ) | $ | (27,837,237 | ) |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, investments in passive foreign investment company (“PFIC”) adjustments, regulated investment companies, and real estate investment trusts.
As of September 30, 2015, the Funds had the following capital loss carryforwards for federal income tax purposes:
No | No | |||||||||||||||||||||||||||
Short Term Expiring In | Expiration | Expiration | ||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | Short Term* | Long Term* | Total | ||||||||||||||||||||||
Emerging Markets Equity Fund | $ | — | $ | — | $ | — | $ | — | $ | 8,763,606 | $ | 35,329,606 | $ | 44,093,212 | ||||||||||||||
Mid Cap Fund | — | 53,047,209 | 70,800,792 | — | — | — | 123,848,001 | |||||||||||||||||||||
Small Cap Value Fund** | — | — | 4,388,796 | — | — | — | 4,388,796 | |||||||||||||||||||||
Total Return Bond Fund | — | — | — | — | 209,952 | 1,131,825 | 1,341,777 | |||||||||||||||||||||
Ultra Short Duration Fixed Income Fund** | 1,769,310 | 3,231,117 | 3,336,624 | 933,830 | 7,281,827 | 9,154,260 | 25,706,968 |
* The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act made changes to several tax rules impacting the Funds. The provisions of the Act first became effective for the Funds’ fiscal year ended September 30, 2012 and are applicable to all subsequent fiscal years. Although the Act provides several benefits, including the unlimited carryover of future capitallosses, there may be a greater likelihood that all or a portion of each Fund’ pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses must be utilized bore pre-enactment capital loss carryovers may be utilized. Under the Act, new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment law, where capital losses could be carried forward for up to eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.
**May be subject to limitation.
108 |
Notes to Financial Statements (Unaudited) (Continued)
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
As of March 31, 2016, the Trust had the following federal tax cost resulting in net unrealized appreciation (depreciation) as follows:
Net | ||||||||||||||||
Gross | Gross | Unrealized | ||||||||||||||
Federal | Unrealized | Unrealized | Appreciation | |||||||||||||
Tax Cost | Appreciation | Depreciation | (Depreciation) | |||||||||||||
Arbitrage Fund | $ 121,783,421 | $ | 3,996,586 | $ | (2,428,493 | ) | $ | 1,568,093 | ||||||||
Emerging Markets Equity Fund | 17,396,732 | 609,097 | (3,717,367 | ) | (3,108,270 | ) | ||||||||||
Merger Arbitrage Fund | 233,322,405 | 4,934,829 | (4,639,198 | ) | 295,631 | |||||||||||
Mid Cap Fund | 673,435,785 | 80,697,305 | (43,861,651 | ) | 36,835,654 | |||||||||||
Mid Cap Value Fund | 326,263,876 | 49,214,681 | (16,137,538 | ) | 33,077,143 | |||||||||||
Premium Yield Equity Fund | 139,601,625 | 11,794,871 | (10,260,818 | ) | 1,534,053 | |||||||||||
Sands Capital Select Growth Fund | 2,738,977,113 | 1,374,125,719 | (164,134,264 | ) | 1,209,991,455 | |||||||||||
Small Cap Fund | 522,669,230 | 156,201,095 | (31,407,486 | ) | 124,793,609 | |||||||||||
Small Cap Value Fund | 56,236,527 | 2,677,184 | (5,243,826 | ) | (2,566,642 | ) | ||||||||||
Total Return Bond Fund | 196,537,726 | 4,790,675 | (3,148,167 | ) | 1,642,508 | |||||||||||
Ultra Short Duration Fixed Income Fund | 599,937,894 | 1,451,164 | (4,010,602 | ) | (2,559,438 | ) |
The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended September 30, 2012 through 2015) and have concluded that no provision for income tax is required in their financial statements.
6. Commitments and Contingencies
The Funds indemnify the Trust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.
7. Principal Risks
Risks Associated with Foreign Investments — Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.
Risks Associated with Concentration — Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may
109 |
Notes to Financial Statements (Unaudited) (Continued)
be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility on the Funds’ NAVs and magnified effect on the total return.
Risks Associated with Credit — An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities
Risks Associated with Interest Rate Changes — As interest rates rise, the value of fixed-income securities a Fund owns will likely decrease. The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.
Please see the Funds’ prospectus for complete discussion of these and other risks.
8. | Litigation |
In January 2012, the Old Mutual Mid-Cap Fund (which reorganized into the TS&W Mid-Cap Value Fund in March 2009, and was subsequently renamed the Touchstone Mid Cap Value Opportunities Fund in April 2012 and the Touchstone Mid Cap Value Fund in March 2014) was served with a summons and complaint in an action brought by Edward S. Weisfelner, as Trustee of the LB Creditor Trust, in the case captioned Weisfelner v. Fund 1 (U.S. Bankr. S.D.N.Y. Adv. Pro. No. 10-4609) (the “Action”). The Action alleges that, under state law, all payments made to shareholders in the December 2007 leveraged buyout of Lyondell Chemical Company were made, by means of intentional and constructive fraudulent transfer and seeks to recover all those payments. The amount sought to be disgorged is $3,784,800, which is what the Fund received in payments in connection with the leveraged buyout. The Fund (along with thousands of other defendants) has filed a joinder to the currently pending motion to dismiss. The court heard oral argument on the motion to dismiss in January 2015, and in November 2015, the court ruled on the motion to dismiss, dismissing the intentional fraudulent transfer claims but not the constructive fraudulent transfer claims. The path the litigation will follow is uncertain at this time, including whether the parties will appeal the ruling on the motion to dismiss. At this nascent stage of the litigation, it is not possible to assess the likely outcome. The Fund is currently assessing the case and has not yet determined the potential effect, if any, on its net asset value.
9. Subsequent Events
At a meeting of the Board of Trustees (the “Board”) of the Trust held on February 11, 2016, the Board approved Russell Implementation Services, Inc. (“Russell”) as interim sub-advisor, effective February 20, 2016, to the Emerging Markets Equity Fund. The Board also approved the replacement of Russell with a new sub-advisor, Copper Rock Capital Partners, LLC, effective April 19, 2016. Concurrent with the change, effective April 19, 2016, the Emerging Markets Equity Fund was renamed the Touchstone Emerging Markets Small Cap Fund and its principal investment strategies, principal risks, and benchmark index have changed to reflect those of
110 |
Notes to Financial Statements (Unaudited) (Continued)
the Touchstone Emerging Markets Small Cap Fund. Please refer to the Sub-Advisory and Interim Sub-Advisory Agreement Approval Disclosure in the Other Items section of this report for additional information.
At a meeting of the Board held on May 19, 2016, the Board approved replacing the current sub-advisor of the Small Cap Value Fund, DePrince, Race & Zollo, Inc., with Russell as interim sub-advisor, effective on or about May 21, 2016. Effective on or about July 1, 2016, the Board approved replacing Russell with a new sub-advisor, LMCG Investments, LLC.
There were no other subsequent events that necessitated recognition or disclosure on the Funds’ financial statements.
111 |
Proxy Voting Guidelines
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at Touchstonelnvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30 is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.
Quarterly Portfolio Disclosure
The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; (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, 2015 through March 31, 2016).
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, 2016" 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.
112 |
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, | |||||||||||||||
2016 | 2015 | 2016 | 2016* | |||||||||||||||
Touchstone Arbitrage Fund | ||||||||||||||||||
Class A | Actual | 2.40 | % | $ | 1,000.00 | $ | 1,043.80 | $ | 12.26 | ** | ||||||||
Class A | Hypothetical | 2.40 | % | $ | 1,000.00 | $ | 1,013.00 | $ | 12.08 | ** | ||||||||
Class C | Actual | 3.15 | % | $ | 1,000.00 | $ | 1,039.80 | $ | 16.06 | ** | ||||||||
Class C | Hypothetical | 3.15 | % | $ | 1,000.00 | $ | 1,009.25 | $ | 15.82 | ** | ||||||||
Class Y | Actual | 2.11 | % | $ | 1,000.00 | $ | 1,045.70 | $ | 10.79 | ** | ||||||||
Class Y | Hypothetical | 2.11 | % | $ | 1,000.00 | $ | 1,014.45 | $ | 10.63 | ** | ||||||||
Institutional Class | Actual | 2.00 | % | $ | 1,000.00 | $ | 1,046.90 | $ | 10.23 | ** | ||||||||
Institutional Class | Hypothetical | 2.00 | % | $ | 1,000.00 | $ | 1,015.00 | $ | 10.08 | ** | ||||||||
Touchstone Emerging Markets Equity Fund | ||||||||||||||||||
Class A | Actual | 1.69 | % | $ | 1,000.00 | $ | 1,005.40 | $ | 8.47 | |||||||||
Class A | Hypothetical | 1.69 | % | $ | 1,000.00 | $ | 1,016.55 | $ | 8.52 | |||||||||
Class C | Actual | 2.44 | % | $ | 1,000.00 | $ | 1,001.80 | $ | 12.21 | |||||||||
Class C | Hypothetical | 2.44 | % | $ | 1,000.00 | $ | 1,012.80 | $ | 12.28 | |||||||||
Class Y | Actual | 1.44 | % | $ | 1,000.00 | $ | 1,006.50 | $ | 7.22 | |||||||||
Class Y | Hypothetical | 1.44 | % | $ | 1,000.00 | $ | 1,017.80 | $ | 7.26 | |||||||||
Institutional Class | Actual | 1.29 | % | $ | 1,000.00 | $ | 1,007.10 | $ | 6.47 | |||||||||
Institutional Class | Hypothetical | 1.29 | % | $ | 1,000.00 | $ | 1,018.55 | $ | 6.51 | |||||||||
Touchstone Merger Arbitrage Fund | ||||||||||||||||||
Class A | Actual | 2.23 | % | $ | 1,000.00 | $ | 1,030.40 | $ | 11.32 | *** | ||||||||
Class A | Hypothetical | 2.23 | % | $ | 1,000.00 | $ | 1,013.85 | $ | 11.23 | *** | ||||||||
Class C | Actual | 2.98 | % | $ | 1,000.00 | $ | 1,027.40 | $ | 15.10 | *** | ||||||||
Class C | Hypothetical | 2.98 | % | $ | 1,000.00 | $ | 1,010.10 | $ | 14.98 | *** | ||||||||
Class Y | Actual | 1.93 | % | $ | 1,000.00 | $ | 1,033.00 | $ | 9.81 | *** | ||||||||
Class Y | Hypothetical | 1.93 | % | $ | 1,000.00 | $ | 1,015.35 | $ | 9.72 | *** | ||||||||
Institutional Class | Actual | 1.82 | % | $ | 1,000.00 | $ | 1,032.90 | $ | 9.25 | *** | ||||||||
Institutional Class | Hypothetical | 1.82 | % | $ | 1,000.00 | $ | 1,015.90 | $ | 9.17 | *** |
113 |
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, | |||||||||||||||
2016 | 2015 | 2016 | 2016* | |||||||||||||||
Touchstone Mid Cap Fund | ||||||||||||||||||
Class A | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,053.80 | $ | 6.37 | |||||||||
Class A | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.80 | $ | 6.26 | |||||||||
Class C | Actual | 1.99 | % | $ | 1,000.00 | $ | 1,050.10 | $ | 10.20 | |||||||||
Class C | Hypothetical | 1.99 | % | $ | 1,000.00 | $ | 1,015.05 | $ | 10.02 | |||||||||
Class Y | Actual | 0.99 | % | $ | 1,000.00 | $ | 1,055.00 | $ | 5.09 | |||||||||
Class Y | Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.00 | |||||||||
Class Z | Actual | 1.24 | % | $ | 1,000.00 | $ | 1,053.80 | $ | 6.37 | |||||||||
Class Z | Hypothetical | 1.24 | % | $ | 1,000.00 | $ | 1,018.80 | $ | 6.26 | |||||||||
Institutional Class | Actual | 0.92 | % | $ | 1,000.00 | $ | 1,055.50 | $ | 4.73 | |||||||||
Institutional Class | Hypothetical | 0.92 | % | $ | 1,000.00 | $ | 1,020.40 | $ | 4.65 | |||||||||
Touchstone Mid Cap Value Fund | ||||||||||||||||||
Class A | Actual | 1.28 | % | $ | 1,000.00 | $ | 1,091.20 | $ | 6.69 | |||||||||
Class A | Hypothetical | 1.28 | % | $ | 1,000.00 | $ | 1,018.60 | $ | 6.46 | |||||||||
Class C | Actual | 2.03 | % | $ | 1,000.00 | $ | 1,087.70 | $ | 10.60 | |||||||||
Class C | Hypothetical | 2.03 | % | $ | 1,000.00 | $ | 1,014.85 | $ | 10.23 | |||||||||
Class Y | Actual | 1.03 | % | $ | 1,000.00 | $ | 1,092.70 | $ | 5.39 | |||||||||
Class Y | Hypothetical | 1.03 | % | $ | 1,000.00 | $ | 1,019.85 | $ | 5.20 | |||||||||
Institutional Class | Actual | 0.89 | % | $ | 1,000.00 | $ | 1,093.80 | $ | 4.66 | |||||||||
Institutional Class | Hypothetical | 0.89 | % | $ | 1,000.00 | $ | 1,020.55 | $ | 4.50 | |||||||||
Touchstone Premium Yield Equity Fund | ||||||||||||||||||
Class A | Actual | 1.20 | % | $ | 1,000.00 | $ | 1,053.10 | $ | 6.16 | |||||||||
Class A | Hypothetical | 1.20 | % | $ | 1,000.00 | $ | 1,019.00 | $ | 6.06 | |||||||||
Class C | Actual | 1.95 | % | $ | 1,000.00 | $ | 1,049.20 | $ | 9.99 | |||||||||
Class C | Hypothetical | 1.95 | % | $ | 1,000.00 | $ | 1,015.25 | $ | 9.82 | |||||||||
Class Y | Actual | 0.95 | % | $ | 1,000.00 | $ | 1,055.90 | $ | 4.88 | |||||||||
Class Y | Hypothetical | 0.95 | % | $ | 1,000.00 | $ | 1,020.25 | $ | 4.80 | |||||||||
Touchstone Sands Capital Select Growth Fund | ||||||||||||||||||
Class A | Actual | 1.07 | % | $ | 1,000.00 | $ | 976.70 | $ | 5.29 | |||||||||
Class A | Hypothetical | 1.07 | % | $ | 1,000.00 | $ | 1,019.65 | $ | 5.40 | |||||||||
Class C | Actual | 1.82 | % | $ | 1,000.00 | $ | 973.10 | $ | 8.98 | |||||||||
Class C | Hypothetical | 1.82 | % | $ | 1,000.00 | $ | 1,015.90 | $ | 9.17 | |||||||||
Class Y | Actual | 0.82 | % | $ | 1,000.00 | $ | 978.00 | $ | 4.05 | |||||||||
Class Y | Hypothetical | 0.82 | % | $ | 1,000.00 | $ | 1,020.90 | $ | 4.14 | |||||||||
Class Z | Actual | 1.06 | % | $ | 1,000.00 | $ | 977.40 | $ | 5.24 | |||||||||
Class Z | Hypothetical | 1.06 | % | $ | 1,000.00 | $ | 1,019.70 | $ | 5.35 |
114 |
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, | |||||||||||||||
2016 | 2015 | 2016 | 2016* | |||||||||||||||
Touchstone Small Cap Fund | ||||||||||||||||||
Class A | Actual | 1.38 | % | $ | 1,000.00 | $ | 1,031.70 | $ | 7.01 | |||||||||
Class A | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.10 | $ | 6.96 | |||||||||
Class C | Actual | 2.13 | % | $ | 1,000.00 | $ | 1,027.20 | $ | 10.79 | |||||||||
Class C | Hypothetical | 2.13 | % | $ | 1,000.00 | $ | 1,014.35 | $ | 10.73 | |||||||||
Class Y | Actual | 1.13 | % | $ | 1,000.00 | $ | 1,032.80 | $ | 5.74 | |||||||||
Class Y | Hypothetical | 1.13 | % | $ | 1,000.00 | $ | 1,019.35 | $ | 5.70 | |||||||||
Institutional Class | Actual | 1.05 | % | $ | 1,000.00 | $ | 1,032.90 | $ | 5.34 | |||||||||
Institutional Class | Hypothetical | 1.05 | % | $ | 1,000.00 | $ | 1,019.75 | $ | 5.30 | |||||||||
Touchstone Small Cap Value Fund | ||||||||||||||||||
Class A | Actual | 1.38 | % | $ | 1,000.00 | $ | 1,065.00 | $ | 7.12 | |||||||||
Class A | Hypothetical | 1.38 | % | $ | 1,000.00 | $ | 1,018.10 | $ | 6.96 | |||||||||
Class C | Actual | 2.13 | % | $ | 1,000.00 | $ | 1,060.70 | $ | 10.97 | |||||||||
Class C | Hypothetical | 2.13 | % | $ | 1,000.00 | $ | 1,014.35 | $ | 10.73 | |||||||||
Class Y | Actual | 1.13 | % | $ | 1,000.00 | $ | 1,066.20 | $ | 5.84 | |||||||||
Class Y | Hypothetical | 1.13 | % | $ | 1,000.00 | $ | 1,019.35 | $ | 5.70 | |||||||||
Institutional Class | Actual | 0.98 | % | $ | 1,000.00 | $ | 1,067.00 | $ | 5.06 | |||||||||
Institutional Class | Hypothetical | 0.98 | % | $ | 1,000.00 | $ | 1,020.10 | $ | 4.95 | |||||||||
Touchstone Total Return Bond Fund | ||||||||||||||||||
Class A | Actual | 0.88 | % | $ | 1,000.00 | $ | 1,016.30 | $ | 4.44 | |||||||||
Class A | Hypothetical | 0.88 | % | $ | 1,000.00 | $ | 1,020.60 | $ | 4.45 | |||||||||
Class C | Actual | 1.63 | % | $ | 1,000.00 | $ | 1,012.50 | $ | 8.20 | |||||||||
Class C | Hypothetical | 1.63 | % | $ | 1,000.00 | $ | 1,016.85 | $ | 8.22 | |||||||||
Class Y | Actual | 0.63 | % | $ | 1,000.00 | $ | 1,018.50 | $ | 3.18 | |||||||||
Class Y | Hypothetical | 0.63 | % | $ | 1,000.00 | $ | 1,021.85 | $ | 3.18 | |||||||||
Institutional Class | Actual | 0.50 | % | $ | 1,000.00 | $ | 1,018.20 | $ | 2.52 | |||||||||
Institutional Class | Hypothetical | 0.50 | % | $ | 1,000.00 | $ | 1,022.50 | $ | 2.53 |
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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, | |||||||||||||||
2016 | 2015 | 2016 | 2016* | |||||||||||||||
Touchstone Ultra Short Duration Fixed Income Fund | ||||||||||||||||||
Class A | Actual | 0.69 | % | $ | 1,000.00 | $ | 1,004.90 | $ | 3.46 | |||||||||
Class A | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.55 | $ | 3.49 | |||||||||
Class C | Actual | 1.19 | % | $ | 1,000.00 | $ | 1,002.40 | $ | 5.96 | |||||||||
Class C | Hypothetical | 1.19 | % | $ | 1,000.00 | $ | 1,019.05 | $ | 6.01 | |||||||||
Class Y | Actual | 0.44 | % | $ | 1,000.00 | $ | 1,006.20 | $ | 2.21 | |||||||||
Class Y | Hypothetical | 0.44 | % | $ | 1,000.00 | $ | 1,022.80 | $ | 2.23 | |||||||||
Class Z | Actual | 0.69 | % | $ | 1,000.00 | $ | 1,004.90 | $ | 3.46 | |||||||||
Class Z | Hypothetical | 0.69 | % | $ | 1,000.00 | $ | 1,021.55 | $ | 3.49 | |||||||||
Institutional Class | Actual | 0.39 | % | $ | 1,000.00 | $ | 1,006.40 | $ | 1.96 | |||||||||
Institutional Class | Hypothetical | 0.39 | % | $ | 1,000.00 | $ | 1,023.05 | $ | 1.97 |
* | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/366 (to reflect one-half year period). |
** | Excluding dividend and interest expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.58, $12.39, $7.11 and $6.55, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.47, $12.23, $7.01 and $6.46, respectively |
*** | Excluding dividend and interest expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.53, $12.32, $7.01 and $6.45, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.47, $12.23, $6.96 and $6.41, respectively. |
Advisory and Sub-Advisory Agreement Approval Disclosure
At a meeting held on November 19, 2015, 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 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.
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Other Items (Unaudited) (Continued)
In approving the Funds’ Investment Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services provided to the Funds, including the personnel providing such services; (2) the Advisor’s compensation and profitability; (3) a comparison of fees and performance with other advisers; (4) economies of scale; and (5) the terms of the Investment Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of Advisor Services. The Board considered the level and depth of knowledge of the Advisor, including the professional experience and qualifications of senior personnel. In evaluating the quality of services provided by the Advisor, the Board took into account its familiarity with the Advisor’s senior management through Board meetings, discussions and reports during the preceding year. The Board also took into account the Advisor’s compliance policies and procedures. The quality of administrative and other services, including the Advisor’s role in coordinating the activities of the Funds’ other service providers, was also considered. The Board also considered the Advisor’s relationship with its affiliates and the resources available to them, as well as any potential conflicts of interest.
The Board discussed the Advisor’s effectiveness in monitoring the performance of each Sub-Advisor, including the Sub-Advisor that was an affiliate of the Advisor, and the Advisor’s timeliness in responding to performance issues. The Board considered the Advisor’s process for monitoring each of the Sub-Advisors, which includes an examination of both qualitative and quantitative elements of the Sub-Advisor’s organization, personnel, procedures, investment discipline, infrastructure and performance. The Board considered that the Advisor conducts 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’s disaster recovery programs, trade allocation and execution procedures, compliance with the Sub-Advisor’s policies and procedures, results of regulatory examinations and any other factors that might affect the quality of services that the Sub-Advisor provides to the applicable Fund(s). The Board noted that the Advisor’s compliance monitoring processes also include quarterly reviews of compliance reports, and that any significant 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 one of the Funds) and the direct and indirect benefits derived by the Advisor and its affiliates from the Advisor’s relationship with the Funds. The information considered by the Board included operating profit margin information for the Advisor’s business as a whole. The Board noted that the Advisor waived a portion of advisory fees and administrative fees and/or reimbursed expenses of each of the Funds except Touchstone Merger Arbitrage Fund in order to limit each Fund’s net operating expenses. The Board also noted that the Advisor pays the Sub-Advisors’ sub-advisory fees out of the advisory fees the Advisor receives from the Funds. The Board reviewed the profitability of the Advisor’s relationship with the Funds both before and after tax expenses, and also considered whether the Advisor has the financial wherewithal to continue to provide services to the Funds, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board considered that the Funds’ distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds.
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
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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, 2015, as applicable, and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board also took into account current market conditions and their effect on the Funds’ performance.
The Board also considered the effect of each Fund’s growth and size on its performance and expenses. The Board noted that the Advisor had waived a portion of the fees and/or reimbursed expenses of each of the Funds except Touchstone Merger Arbitrage Fund in order to reduce the Funds’ respective operating expenses to targeted levels. The Board noted that the sub-advisory fees under the Sub-Advisory Agreement with respect to each Fund were paid by the Advisor out of the advisory fees it receives from the Fund and considered the impact of such sub-advisory fees on the profitability of the Advisor. In reviewing the respective expense ratios and performance of each of the Funds, the Board also took into account the nature, extent and quality of the services provided to the Funds by the Advisor and its affiliates.
The Board considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:
Touchstone Arbitrage 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 and/or 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- and twelve-month periods ended June 30, 2015. The Board noted management’s discussion of the Fund’s performance and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone 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 and/or 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- and thirty-six month periods ended June 30, 2015, the Fund’s performance was in the 4th quintile of the Fund’s peer group for the twelve-month period ended June 30, 2015. The Board noted management’s discussion of 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 that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Merger Arbitrage Fund. The Fund’s advisory fee and total expense ratio were below the median of its peer group. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2015, and the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2015. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
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Other Items (Unaudited) (Continued)
Touchstone Mid Cap 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 and/or 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, 2015, the Fund’s performance was in the 1st quintile of its peer group for the twelve-month period ended June 30, 2015, and the Fund’s performance was in the 2nd quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2015. The Board noted management’s discussion of the Fund’s recent performance and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Mid Cap Value 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 and/or 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- and twelve-month periods ended June 30, 2015. The Fund’s performance was in the 4th quintile of the Fund’s peer group for the thirty-six month period ended June 30, 2015. The Board noted management’s discussion of the Fund’s performance 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 that the advisory fee was reasonable in light of the 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 below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 3rd quintile of the Fund’s peer group for the six-month period ended June 30, 2015, and the Fund’s performance was in the 5th quintile of the Fund’s peer group for the twelve- and thirty-six-month periods ended June 30, 2015. The Board noted management’s discussion of the Fund’s recent performance and management’s continued monitoring of the Fund’s performance. 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 that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Sands Capital Select Growth Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six-month period ended June 30, 2015, the Fund’s performance was in the 4th quintile of the Fund’s peer group for the twelve-month period ended June 30, 2015, and the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2015. The Board noted management’s discussion of the Fund’s recent performance and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors consider.
Touchstone Small Cap 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 and/or 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, 2015, the Fund’s performance was in the 3rd quintile of the Fund’s peer group for the twelve-month period ended
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Other Items (Unaudited) (Continued)
June 30, 2015, and the Fund’s performance was in the 4th quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2015. The Board noted management’s discussion of the Fund’s performance and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone Small Cap 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. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing operating expenses of the Fund. The Fund’s performance was in the 3rd quintile of the Fund’s peer group for the six-and twelve-month periods ended June 30, 2015, and the Fund’s performance was in the 4th quintile of the Fund’s peer group for the thirty-six-month period ended June 30, 2015. The Board noted management’s discussion of the Fund’s recent performance 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 that the advisory fee was reasonable in light of the 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 and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing 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- and thirty-six-month periods ended June 30, 2015, and the Fund’s performance was in the 1st quintile of the Fund’s peer group for the twelve-month period ended June 30, 2015. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Touchstone 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/or reimbursing operating expenses of the Fund. 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, 2015, and the Fund’s performance was in the 2nd quintile of the Fund’s peer group for the thirty-six-month periods ended June 30, 2015. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.
Economies of Scale. The Board considered the effect of each Fund’s current size and potential growth on its performance and expenses. The Board took into account management’s discussion of the Funds’ advisory fee structure. The Board considered the effective advisory fees under the Investment Advisory Agreement as a percentage of assets at different asset levels and possible economies of scale that might be realized if the assets of each Fund increase. The Board noted that the advisory fee schedules for some of the Funds contain breakpoints that would reduce the respective advisory fee rate on assets above specified levels as the respective Fund’s assets increased and considered the necessity of adding breakpoints with respect to the Funds that did not currently have such breakpoints in their advisory fee schedules. The Board determined that adding breakpoints at specified levels to the advisory fee schedule of each 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.
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Other Items (Unaudited) (Continued)
Conclusion. In considering the renewal of the Funds’ Investment Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Trustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately with respect to each Fund. The Board reached the following conclusions regarding the Funds’ Investment Advisory Agreement with the Advisor, among others: (a) the Advisor demonstrated that it possesses the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Advisor maintains an appropriate compliance program; (c) the overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, is being addressed; and (d) each Fund’s advisory fee is reasonable in light of the services received by the Fund from the Advisor and other factors considered. Based on their conclusions, the Trustees determined with respect to each Fund that continuation of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.
In approving the Funds’ respective Sub-Advisory Agreements, the Board considered various factors with respect to each Fund and the applicable Sub-Advisory Agreement, among them: (1) the nature, extent and quality of services provided to the Fund, including the personnel providing such services; (2) the Sub-Advisor’s compensation; (3) a comparison of the sub-advisory fee and performance with 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 one of the Sub-Advisors with the Advisor, noting any potential conflicts of interest. The Board also noted that, on a periodic basis, the Board meets with portfolio managers of the Sub-Advisors to discuss their respective performance and investment processes and strategies. The Board considered each Sub-Advisor’s level of knowledge and investment style. The Board reviewed the experience and credentials of the applicable investment personnel who are responsible for managing the investment of portfolio securities with respect to the Funds. The Board also noted each Sub-Advisor’s brokerage practices.
Sub-Advisor’s Compensation, Profitability and Economies of Scale. The Board also took into consideration the financial condition of each Sub-Advisor and any indirect benefits derived by each Sub-Advisor and its affiliates from the Sub-Advisor’s relationship with the Funds. In considering the profitability to each Sub-Advisor of its relationship with the Funds, the Board noted the 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
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Other Items (Unaudited) (Continued)
each Fund in relation to various comparative data, including the median and average sub-advisory fees of each Fund’s peer group, and considered the following information:
Touchstone Arbitrage Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Merger Arbitrage Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Mid Cap Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Mid Cap Value Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone 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 services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Sands Capital Select Growth Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Small Cap Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone Small Cap Value Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
Touchstone 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 services received by the Fund from the Sub-Advisor and other factors considered.
Touchstone Ultra Short Duration Fixed Income Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.
As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended June 30, 2015, 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
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Other Items (Unaudited) (Continued)
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 goals and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the overall performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, is being addressed; (d) each Fund’s sub-advisory fees are reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered; and (e) the Sub-Advisor’s investment strategies are appropriate for pursuing the investment goals of each Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement with respect to each Fund was in the best interests of the Fund and its shareholders.
Sub-Advisory and Interim Sub-Advisory Agreement Approval Disclosure
At an in-person meeting held on February 11, 2016 (the “Meeting”), Touchstone Advisors, Inc. (“Touchstone”) proposed the replacement of the current sub-advisor of the Touchstone Emerging Markets Equity Fund (the “Fund”), AGF Investments America, Inc. (“AGF”), to the Board of Trustees (the “Board” or “Trustees”) of Touchstone Funds Group Trust. The Board approved replacing AGF with Copper Rock Capital Partners, LLC (“Copper Rock” or the “Sub-Advisor”). The Board also approved Russell Implementation Services, Inc. (“Russell” or the “Interim Sub-Advisor”) as interim sub-advisor to the Fund from February 20, 2016 through April 18, 2016.
Touchstone and Copper Rock provided the Board with various written materials in advance of the Meeting to assist with the Board’s consideration of Copper Rock as sub-advisor. Touchstone provided written and oral information stating the basis for its recommendation to engage Copper Rock and to transition the Fund to the proposed emerging markets small cap strategy. The information also included details regarding Copper Rock’s: (a) investment philosophy and investment process; (b) investment management services proposed to be provided to the Fund; (c) investment management personnel; (d) operating history, infrastructure and financial condition; (e) proposed sub-advisory fees that would be paid to Copper Rock by Touchstone; and (f) reputation, expertise and resources as an investment advisor. The Board then discussed the written materials that the Board received before the Meeting and all other information that the Board received at the Meeting.
The Board, including the Independent Trustees, voting separately, unanimously determined that the proposal to approve the Sub-Advisory Agreement between Touchstone and Copper Rock with respect to the Fund (the “Sub-Advisory Agreement”) would be in the best interests of the Fund. In approving the Sub-Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent, and quality of services to be provided to the Fund, including the personnel who would be providing such services; (2) the Sub-Advisor’s proposed compensation; (3) the performance of the Fund and that of a composite of the accounts managed by the Sub-Advisor that use the same emerging markets small cap strategy that the Sub-Advisor proposes to use in managing the Fund; and (4) the terms of the Sub-Advisory Agreement. The Board’s consideration of these factors is summarized 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 Touchstone and Copper Rock regarding the services to be provided by Copper Rock. The Board considered Copper Rock’s level of knowledge and investment style. The Board reviewed the experience and credentials of the investment personnel who would be responsible for managing the investment of portfolio securities with respect to the Fund. The Board also took into consideration that Touchstone was satisfied with Copper Rock’s in-house risk and compliance teams. The Board also took into account Copper Rock’s management of the Touchstone International Small Cap Fund.
Copper Rock’s Compensation. The Board took into consideration the financial condition of Copper Rock and any direct and indirect benefits to be derived by Copper Rock’s relationship with the Fund. In considering the anticipated level of profitability to Copper Rock, the Board noted the proposed contractual undertaking
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of Touchstone to maintain the current levels of expense limitations for the Fund, that the sub-advisory fees under the Sub-Advisory Agreement would be paid by Touchstone out of the advisory fees that it receives from the Fund, and that the sub-advisory fees were negotiated at arm’s length between Touchstone and Copper Rock. As a consequence, the anticipated level of profitability to Copper Rock from its relationship with the Fund was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider potential economies of scale in Copper Rock’s management of the Fund to be a substantial factor in its consideration, although the Board noted that the proposed sub-advisory fee schedule contains breakpoints that would reduce the sub-advisory fee rate if Fund assets exceed specified levels.
Sub-Advisory Fees and Fund Performance.The Board considered that the Fund would pay advisory fees to Touchstone and that Touchstone would pay sub-advisory fees to Copper Rock. The Board also considered certain comparative fee information concerning the sub-advisory fees that were paid to AGF for managing the Fund. The Board also compared Copper Rock’s proposed sub-advisory fee to the sub-advisory fee paid to the incumbent sub-advisor, noting that the proposed sub-advisory fee schedule with Copper Rock was identical to the current sub-advisory fee schedule with AGF, the incumbent sub-advisor. The Board considered the amount of the advisory fee to be retained by Touchstone and the amount to be paid to Copper Rock, with respect to the various services to be provided by Touchstone and Copper Rock. The Board also noted that Touchstone negotiated the sub-advisory fee with Copper Rock at arm’s length. The Board also noted that that identical expense caps were expected to remain in place for the Fund following the sub-advisor change.
The Board considered the performance of Copper Rock’s strategies and the Fund’s performance record under AGF’s management. The Board also reviewed Copper Rock’s investment performance, highlighting the firm’s strong performance in its emerging markets small-cap strategy relative to the MSCI Emerging Markets Small Cap Index. Based upon their review, the Trustees concluded that the Fund’s proposed sub-advisory fee was reasonable in light of the services to be provided by Copper Rock.
Conclusion. The Board reached the following conclusions regarding the Sub-Advisory Agreement: (a) Copper Rock is qualified to manage the Fund’s assets in accordance with the Fund’s investment goal and policies; (b) Copper Rock maintains an appropriate and effective compliance program; (c) the Fund’s proposed sub-advisory fee is reasonable in relation to the services to be provided by Copper Rock; and (d) Copper Rock’s proposed investment strategies are appropriate for pursuing the Fund’s investment goal. In considering the approval of the Sub-Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee attributed different weights to the various factors. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.
Touchstone and Russell provided the Board with various written materials in advance of the Meeting to assist with the Board’s consideration of Russell. Touchstone provided written and oral information stating the basis for its recommendation to engage Russell as an interim sub-advisor. The information also included details regarding Russell’s: (a) investment philosophy and investment process; (b) investment management services proposed to be provided to the Fund; (c) investment management personnel; (d) operating history, infrastructure and financial condition; (e) proposed sub-advisory fee that would be paid to Russell by Touchstone; and (f) reputation, expertise and resources as an interim investment advisor. The Board then discussed the written materials that the Board received before the Meeting and all other information that the Board received at the Meeting.
The Board, including the Independent Trustees, voting separately, unanimously determined that the proposal to approve the Interim Sub-Advisory Agreement between Touchstone and Russell with respect to the Fund (the “Interim Sub-Advisory Agreement”) would be in the best interests of the shareholders and the Fund. In approving the Interim Sub-Advisory Agreement, the Board considered various factors, among them: (1) the
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Other Items (Unaudited) (Continued)
nature, extent, and quality of services to be provided to the Fund, including the personnel who would be providing such services; (2) the Interim Sub-Advisor’s proposed compensation; (3) the Interim Sub-Advisor’s past performance; and (4) the terms of the Interim 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 Touchstone regarding the services to be provided by Russell. The Board considered Russell’s level of knowledge and investment style. The Board reviewed the experience and credentials of the investment personnel who would be responsible for managing the investment of portfolio securities with respect to the Fund. The Board also took into consideration that Touchstone was satisfied with Russell’s in-house risk and compliance teams.
Russell’s Compensation. The Board took into consideration the financial condition of Russell and any direct and indirect benefits to be derived by Russell’s relationship with the Fund. In considering the anticipated level of profitability to Russell, the Board noted the proposed contractual undertaking of Touchstone to maintain expense limitations for the Fund and also noted that the sub-advisory fee under the Interim Sub-Advisory Agreement would be paid by Touchstone out of the advisory fee that it receives from the Fund, and that the sub-advisory fee was negotiated at arm’s length between Touchstone and Russell. As a consequence, the anticipated level of profitability to Russell from its relationship with the Fund was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider potential economies of scale in Russell’s management of the Fund to be a substantial factor in its consideration.
Interim Sub-Advisory Fee and Fund Performance. The Board considered that the Fund would pay an advisory fee to Touchstone and that Touchstone would pay an interim sub-advisory fee to Russell. The Board also considered certain comparative fee information concerning the sub-advisory fee that was paid to AGF for managing the Fund. The Board also compared Russell’s proposed interim sub-advisory fee to the sub-advisory fees paid to AGF, noting that the proposed interim sub-advisory fee schedule to Russell was substantially lower than AGF’s sub-advisory fee schedule. The Board considered the amount of the advisory fee to be retained by Touchstone and the amount to be paid to Russell, with respect to the various services to be provided by Touchstone and Russell. The Board also noted that Touchstone negotiated the interim sub-advisory fee with Russell at arm’s length.
The Board also considered Russell’s investment performance and the Fund’s performance record under AGF management. The Trustees also noted that Russell has extensive experience providing transition services including interim management to the Touchstone Funds complex during sub-advisor transitions and that Touchstone was satisfied with Russell’s management of those funds. Based upon their review, the Trustees concluded that the Fund’s proposed sub-advisory fee was reasonable in light of the services to be received by the Fund from Russell.
Conclusion. The Board reached the following conclusions regarding the Interim Sub-Advisory Agreement: (a) Russell is qualified to manage the Fund’s assets in accordance with the Fund’s investment goal and policies; (b) Russell maintains an appropriate compliance program; (c) the Fund’s proposed interim sub-advisory fee is reasonable in relation to the fees of similar funds and the services to be provided by Russell; and (d) Russell’s proposed investment strategies are appropriate for pursuing the investment goal of the Fund. In considering the approval of the Interim Sub-Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee attributed different weights to the various factors. Based on its conclusions, the Board determined that approval of the Interim Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.
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We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today’s world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
• | We collect only the information we need to service your account and administer our business. |
• | We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information. |
• | We make every effort to ensure the accuracy of your information. |
We Collect the Following Nonpublic Personal Information About You:
• | Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and |
• | Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information. |
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• | We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business. |
• | We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information. |
• | We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document. |
• | We will not sell your personal information to anyone. |
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone 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.
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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-1603
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 5/27/16
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 5/27/16
By (Signature and Title)* /s/ Terrie A. Wiedenheft
Terrie A. Wiedenheft, Controller and Treasurer
(principal financial officer)
Date 5/27/16
* Print the name and title of each signing officer under his or her signature