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 811-08416
Touchstone Variable Series Trust
(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203
(Address of principal executive offices) (Zip code)
E. Blake Moore, Jr.
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: December 31
Date of reporting period: December 31, 2021
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
(a) | The Report to Shareholders is attached herewith. |
Touchstone Variable Series Trust |
Touchstone Balanced Fund |
Touchstone Bond Fund |
Touchstone Common Stock Fund |
Touchstone Small Company Fund |
President
Touchstone Variable Series Trust
Average Annual Total Returns | |||
Touchstone Balanced Fund | 1 Year | 5 Years | 10 Years |
Class I | 17.07% | 12.91% | 10.91% |
Class SC* | 17.07% | 12.91% | 10.91% |
60% S&P 500® Index & 40% Bloomberg U.S. Aggregate Bond Index | 15.86% | 12.62% | 11.14% |
S&P 500® Index | 28.71% | 18.47% | 16.55% |
Bloomberg U.S. Aggregate Bond Index | -1.54% | 3.57% | 2.90% |
* | The chart above represents performance of Class I shares only, which will vary from the performance of Class SC shares based on the differences in fees paid by shareholders in the different classes. The inception date of Class SC shares was April 13, 2021. Class SC shares performance was calculated using the historical performance of Class I shares for the periods prior to April 13, 2021. The returns have been restated for fees applicable to Class SC shares. |
Average Annual Total Returns | |||
Touchstone Bond Fund | 1 Year | 5 Years | 10 Years |
Class I | -1.21% | 4.02% | 2.96% |
Class SC* | -1.30% | 3.81% | 2.70% |
Bloomberg U.S. Aggregate Bond Index | -1.54% | 3.57% | 2.90% |
* | The chart above represents performance of Class I shares only, which will vary from the performance of Class SC shares based on the differences in fees paid by shareholders in the different classes. The inception date of Class SC shares was July 10, 2019. Class SC shares performance was calculated using the historical performance of Class I shares for the periods prior to July 10, 2019. The returns have been restated for fees applicable to Class SC shares. |
Average Annual Total Returns | |||
Touchstone Common Stock Fund | 1 Year | 5 Years | 10 Years |
Class I | 27.85% | 17.83% | 15.53% |
Class SC* | 27.57% | 17.52% | 15.19% |
S&P 500® Index | 28.71% | 18.47% | 16.55% |
* | The chart above represents performance of Class I shares only, which will vary from the performance of Class SC shares based on the differences in fees paid by shareholders in the different classes. The inception date of Class SC shares was July 10, 2019. Class SC shares performance was calculated using the historical performance of Class I shares for the periods prior to July 10, 2019. The returns have been restated for fees applicable to Class SC shares. |
Average Annual Total Returns | |||
Touchstone Small Company Fund | 1 Year | 5 Years | 10 Years |
Class I | 24.18% | 14.42% | 14.06% |
Russell 2000® Index | 14.82% | 12.02% | 13.23% |
Credit Quality*(% of Fixed Income Securities) | |
AAA/Aaa | 49.9% |
AA/Aa | 4.6 |
A/A | 14.9 |
BBB/Baa | 29.8 |
BB/Ba | 0.8 |
Total | 100.0% |
Sector Allocation**(% of Net Assets) | |
Common Stocks | |
Information Technology | 19.3% |
Communication Services | 12.2 |
Health Care | 8.8 |
Financials | 7.5 |
Consumer Discretionary | 6.6 |
Industrials | 6.0 |
Consumer Staples | 2.4 |
Real Estate | 1.7 |
Energy | 1.4 |
Materials | 1.0 |
Corporate Bonds | 15.2 |
U.S. Treasury Obligations | 14.0 |
Exchange-Traded Fund | 1.7 |
U.S. Government Mortgage-Backed Obligations | 0.9 |
Sovereign Government Obligations | 0.2 |
Short-Term Investment Fund | 1.2 |
Other Assets/Liabilities (Net) | (0.1) |
Total | 100.0% |
Credit Quality*(% of Fixed Income Securities) | |
AAA/Aaa | 52.5% |
AA/Aa | 6.2 |
A/A | 10.7 |
BBB/Baa | 25.8 |
BB/Ba | 1.1 |
B/B | 0.7 |
CC | 0.1 |
Cash Equivalents | 2.9 |
Total | 100.0% |
Sector Allocation**(% of Net Assets) | |
Information Technology | 27.7% |
Communication Services | 18.1 |
Health Care | 13.3 |
Financials | 10.9 |
Consumer Discretionary | 9.8 |
Industrials | 9.1 |
Consumer Staples | 3.5 |
Real Estate | 2.5 |
Energy | 2.0 |
Materials | 1.6 |
Short-Term Investment Fund | 0.0 |
Other Assets/Liabilities (Net) | 1.5 |
Total | 100.0% |
Sector Allocation*(% of Net Assets) | |
Consumer Discretionary | 19.6% |
Industrials | 17.9 |
Health Care | 17.0 |
Information Technology | 16.6 |
Financials | 13.1 |
Real Estate | 5.8 |
Materials | 5.6 |
Communication Services | 3.8 |
Consumer Staples | 0.1 |
Short-Term Investment Fund | 1.1 |
Other Assets/Liabilities (Net) | (0.6) |
Total | 100.0% |
Shares | Market Value | |||
Common Stocks — 66.9% | ||||
Information Technology — 19.3% | ||||
19,164 | Apple, Inc. | $ 3,402,952 | ||
4,367 | International Business Machines Corp. | 583,693 | ||
13,113 | Microsoft Corp. | 4,410,164 | ||
11,246 | Oracle Corp. | 980,764 | ||
5,146 | salesforce.com, Inc.* | 1,307,753 | ||
8,036 | SS&C Technologies Holdings, Inc. | 658,791 | ||
5,122 | Texas Instruments, Inc. | 965,343 | ||
3,973 | Visa, Inc. - Class A | 860,989 | ||
2,796 | Workday, Inc. - Class A* | 763,811 | ||
13,934,260 | ||||
Communication Services — 12.2% | ||||
1,080 | Alphabet, Inc. - Class C* | 3,125,077 | ||
9,870 | AT&T, Inc. | 242,802 | ||
16,852 | Comcast Corp. - Class A | 848,161 | ||
11,397 | Fox Corp. - Class A | 420,549 | ||
8,455 | Meta Platforms, Inc. - Class A* | 2,843,839 | ||
1,358 | Netflix, Inc.* | ���818,114 | ||
3,151 | Walt Disney Co. (The)* | 488,059 | ||
8,786,601 | ||||
Health Care — 8.8% | ||||
5,185 | AmerisourceBergen Corp. | 689,034 | ||
7,342 | BioMarin Pharmaceutical, Inc.* | 648,666 | ||
17,880 | Bristol-Myers Squibb Co. | 1,114,818 | ||
3,770 | HCA Healthcare, Inc. | 968,588 | ||
8,130 | Johnson & Johnson | 1,390,799 | ||
3,162 | UnitedHealth Group, Inc. | 1,587,767 | ||
6,399,672 | ||||
Financials — 7.5% | ||||
30,076 | Bank of America Corp. | 1,338,081 | ||
6,010 | Berkshire Hathaway, Inc. - Class B* | 1,796,990 | ||
3,795 | Goldman Sachs Group, Inc. (The) | 1,451,778 | ||
2,577 | Signature Bank | 833,582 | ||
5,420,431 | ||||
Consumer Discretionary — 6.6% | ||||
2,126 | Airbnb, Inc. - Class A* | 353,958 | ||
3,142 | Alibaba Group Holding Ltd. (China) ADR* | 373,238 | ||
720 | Amazon.com, Inc.* | 2,400,725 | ||
7,922 | Hilton Worldwide Holdings, Inc.* | 1,235,753 | ||
3,294 | Starbucks Corp. | 385,299 | ||
4,748,973 | ||||
Industrials — 6.0% | ||||
2,047 | Deere & Co. | 701,896 | ||
1,118 | FedEx Corp. | 289,159 | ||
5,052 | Hubbell, Inc. | 1,052,180 | ||
2,174 | Parker-Hannifin Corp. | 691,593 | ||
14,999 | Raytheon Technologies Corp. | 1,290,814 | ||
7,549 | Southwest Airlines Co.* | 323,399 | ||
4,349,041 | ||||
Consumer Staples — 2.4% | ||||
9,646 | Monster Beverage Corp.* | 926,402 | ||
8,556 | Philip Morris International, Inc. | 812,820 | ||
1,739,222 | ||||
Real Estate — 1.7% | ||||
4,451 | Jones Lang LaSalle, Inc.* | 1,198,832 | ||
Energy — 1.4% | ||||
10,485 | Exxon Mobil Corp. | 641,577 | ||
11,589 | Schlumberger NV | 347,091 | ||
988,668 |
Shares | Market Value | |||
Materials — 1.0% | ||||
9,297 | DuPont de Nemours, Inc. | $ 751,012 | ||
Total Common Stocks | $48,316,712 |
Principal Amount | ||||
Corporate Bonds — 15.2% | ||||
Financials — 4.2% | ||||
$ 150,000 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Ireland), 2.450%, 10/29/26 | 151,329 | ||
130,000 | Allstate Corp. (The), 1.450%, 12/15/30 | 123,037 | ||
60,000 | American Financial Group, Inc., 5.250%, 4/2/30 | 71,560 | ||
112,000 | Ares Capital Corp., 3.250%, 7/15/25 | 115,721 | ||
81,000 | Bank of America Corp., 2.687%, 4/22/32 | 82,294 | ||
82,000 | Bank of America Corp., 3.705%, 4/24/28 | 89,046 | ||
119,000 | Bank of America Corp., MTN, 4.000%, 1/22/25 | 127,130 | ||
94,000 | Bank of Montreal (Canada), 3.803%, 12/15/32 | 100,895 | ||
70,000 | Berkshire Hathaway Finance Corp., 4.250%, 1/15/49 | 86,252 | ||
142,000 | Charles Schwab Corp. (The), 1.150%, 5/13/26 | 140,164 | ||
128,000 | Citigroup, Inc., 0.981%, 5/1/25 | 127,014 | ||
77,000 | Citigroup, Inc., 3.200%, 10/21/26 | 81,642 | ||
45,000 | Citigroup, Inc., 4.750%, 5/18/46 | 55,511 | ||
138,000 | Corestates Capital III, 144a, (3M LIBOR +0.570%), 0.726%, 2/15/27(A) | 134,232 | ||
122,000 | Goldman Sachs Group, Inc. (The), 2.615%, 4/22/32 | 123,015 | ||
55,000 | Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28 | 59,265 | ||
126,000 | Huntington Bancshares, Inc., 2.550%, 2/4/30 | 128,036 | ||
128,000 | JPMorgan Chase & Co., 2.956%, 5/13/31 | 132,663 | ||
100,000 | JPMorgan Chase & Co., 3.509%, 1/23/29 | 107,205 | ||
200,000 | Lloyds Banking Group PLC (United Kingdom), 3.574%, 11/7/28 | 213,750 | ||
112,000 | Mastercard, Inc., 2.000%, 11/18/31 | 111,795 | ||
109,000 | Morgan Stanley, 3.950%, 4/23/27 | 119,925 | ||
77,000 | Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47 | 87,095 | ||
132,000 | PNC Capital Trust, (3M LIBOR +0.570%), 0.741%, 6/1/28(A) | 128,418 | ||
120,000 | Toronto-Dominion Bank (The) (Canada), MTN, 1.150%, 6/12/25 | 119,043 | ||
197,000 | Truist Bank, Ser A, (3M LIBOR +0.670%), 0.820%, 5/15/27(A) | 191,568 | ||
22,000 | Truist Financial Corp., MTN, 2.850%, 10/26/24 | 22,993 | ||
3,030,598 | ||||
Industrials — 1.5% | ||||
98,000 | Amcor Flexibles North America, Inc., 2.630%, 6/19/30 | 98,449 | ||
29,000 | Boeing Co. (The), 5.040%, 5/1/27 | 32,673 | ||
31,000 | Boeing Co. (The), 5.805%, 5/1/50 | 42,114 | ||
81,000 | Burlington Northern Santa Fe LLC, 5.750%, 5/1/40 | 112,711 | ||
118,000 | CNH Industrial Capital LLC, 1.450%, 7/15/26 | 115,537 | ||
94,000 | FedEx Corp., 5.100%, 1/15/44 | 119,540 | ||
99,000 | John Deere Capital Corp., MTN, 2.450%, 1/9/30 | 102,070 | ||
81,000 | Norfolk Southern Corp., 4.837%, 10/1/41 | 102,335 | ||
103,000 | Roper Technologies, Inc., 2.950%, 9/15/29 | 106,630 | ||
120,000 | Waste Management, Inc., 2.500%, 11/15/50 | 114,636 | ||
117,000 | Xylem, Inc., 1.950%, 1/30/28 | 115,765 | ||
1,062,460 | ||||
Health Care — 1.4% | ||||
84,000 | AbbVie, Inc., 4.450%, 5/14/46 | 101,909 | ||
76,000 | Becton Dickinson and Co., 4.685%, 12/15/44 | 95,652 | ||
67,000 | Bristol-Myers Squibb Co., 5.000%, 8/15/45 | 89,278 | ||
86,000 | CommonSpirit Health, 4.187%, 10/1/49 | 100,414 | ||
100,000 | CommonSpirit Health, 4.200%, 8/1/23 | 104,581 | ||
73,000 | CVS Health Corp., 5.125%, 7/20/45 | 95,178 | ||
104,000 | DH Europe Finance II Sarl, 3.250%, 11/15/39 | 111,315 |
Principal Amount | MarketValue | |||
Corporate Bonds — 15.2% (Continued) | ||||
Health Care — (Continued) | ||||
$ 45,000 | Johnson & Johnson, 2.900%, 1/15/28 | $ 48,016 | ||
93,000 | Mylan, Inc., 4.550%, 4/15/28 | 104,174 | ||
107,000 | UnitedHealth Group, Inc., 3.500%, 8/15/39 | 118,948 | ||
969,465 | ||||
Energy — 1.3% | ||||
200,000 | Aker BP ASA (Norway), 144a, 3.000%, 1/15/25 | 207,343 | ||
78,000 | Boardwalk Pipelines LP, 4.800%, 5/3/29 | 87,427 | ||
65,000 | Canadian Natural Resources Ltd. (Canada), 6.250%, 3/15/38 | 85,708 | ||
74,000 | Cenovus Energy, Inc. (Canada), 5.250%, 6/15/37 | 87,621 | ||
107,000 | Cheniere Energy Partners LP, 144a, 3.250%, 1/31/32 | 108,070 | ||
60,000 | Continental Resources, Inc., 144a, 5.750%, 1/15/31 | 70,657 | ||
18,000 | Diamondback Energy, Inc., 2.875%, 12/1/24 | 18,678 | ||
115,000 | Energy Transfer LP, 4.150%, 9/15/29 | 123,134 | ||
93,000 | NGPL PipeCo LLC, 144a, 7.768%, 12/15/37 | 130,468 | ||
17,000 | Ovintiv Exploration, Inc., 5.375%, 1/1/26 | 18,838 | ||
20,000 | Sabine Pass Liquefaction LLC, 5.000%, 3/15/27 | 22,476 | ||
960,420 | ||||
Consumer Staples — 1.3% | ||||
127,000 | 7-Eleven, Inc., 144a, 0.950%, 2/10/26 | 123,042 | ||
121,000 | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Belgium), 4.900%, 2/1/46 | 153,410 | ||
200,000 | Imperial Brands Finance PLC (United Kingdom), 144a, 4.250%, 7/21/25 | 214,816 | ||
64,000 | Kroger Co. (The), 5.000%, 4/15/42 | 81,430 | ||
96,000 | Mars, Inc., 144a, 3.875%, 4/1/39 | 111,247 | ||
55,000 | PepsiCo, Inc., 1.625%, 5/1/30 | 53,394 | ||
132,000 | Reynolds American, Inc. (United Kingdom), 4.450%, 6/12/25 | 142,525 | ||
65,000 | Starbucks Corp., 3.350%, 3/12/50 | 68,220 | ||
948,084 | ||||
Utilities — 1.2% | ||||
52,000 | American Water Capital Corp., 6.593%, 10/15/37 | 75,165 | ||
102,000 | Cleveland Electric Illuminating Co. (The), 144a, 4.550%, 11/15/30 | 117,187 | ||
74,000 | Duke Energy Progress LLC, 4.150%, 12/1/44 | 87,195 | ||
72,000 | Edison International, 4.125%, 3/15/28 | 76,047 | ||
104,000 | Ohio Power Co., 2.900%, 10/1/51 | 100,694 | ||
126,000 | Pacific Gas and Electric Co., 3.500%, 8/1/50 | 117,121 | ||
89,000 | PacifiCorp., 5.750%, 4/1/37 | 117,350 | ||
188,000 | WEC Energy Group, Inc., (3M LIBOR +2.112%), 2.268%, 5/15/67(A) | 174,605 | ||
865,364 | ||||
Communication Services — 1.1% | ||||
42,000 | Alphabet, Inc., 1.900%, 8/15/40 | 38,369 | ||
76,000 | AT&T, Inc., 3.850%, 6/1/60 | 79,717 | ||
54,000 | AT&T, Inc., 4.500%, 5/15/35 | 62,467 | ||
75,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45 | 102,706 | ||
74,000 | Comcast Corp., 4.000%, 3/1/48 | 85,532 | ||
36,000 | Deutsche Telekom International Finance BV (Germany), 8.750%, 6/15/30 | 52,357 | ||
24,000 | Netflix, Inc., 144a, 4.875%, 6/15/30 | 27,990 | ||
118,000 | T-Mobile USA, Inc., 3.875%, 4/15/30 | 129,225 | ||
141,000 | Verizon Communications, Inc., 2.987%, 10/30/56 | 134,050 | ||
76,000 | ViacomCBS, Inc., 4.950%, 5/19/50 | 97,211 | ||
809,624 | ||||
Information Technology — 1.1% | ||||
67,000 | Apple, Inc., 4.650%, 2/23/46 | 88,165 |
Principal Amount | MarketValue | |||
Information Technology — (Continued) | ||||
$ 104,000 | Broadcom, Inc., 4.150%, 11/15/30 | $ 115,458 | ||
104,000 | Fiserv, Inc., 3.500%, 7/1/29 | 111,945 | ||
112,000 | Microchip Technology, Inc., 144a, 0.983%, 9/1/24 | 109,965 | ||
49,000 | Microsoft Corp., 3.500%, 2/12/35 | 56,067 | ||
90,000 | NXP BV / NXP Funding LLC (China), 144a, 5.350%, 3/1/26 | 101,731 | ||
46,000 | Oracle Corp., 2.650%, 7/15/26 | 47,299 | ||
65,000 | Visa, Inc., 4.150%, 12/14/35 | 77,901 | ||
96,000 | VMware, Inc., 1.400%, 8/15/26 | 94,402 | ||
802,933 | ||||
Real Estate — 1.0% | ||||
68,000 | American Homes 4 Rent LP REIT, 4.250%, 2/15/28 | 75,385 | ||
100,000 | Crown Castle International Corp. REIT, 3.650%, 9/1/27 | 107,496 | ||
84,000 | Equinix, Inc. REIT, 2.900%, 11/18/26 | 87,071 | ||
98,000 | Healthcare Realty Trust, Inc. REIT, 2.400%, 3/15/30 | 97,620 | ||
122,000 | Host Hotels & Resorts LP REIT, 4.500%, 2/1/26 | 131,504 | ||
55,000 | Mid-America Apartments LP REIT, 3.750%, 6/15/24 | 57,905 | ||
74,000 | Sabra Health Care LP REIT, 5.125%, 8/15/26 | 81,462 | ||
37,000 | STORE Capital Corp. REIT, 4.500%, 3/15/28 | 40,912 | ||
63,000 | STORE Capital Corp. REIT, 4.625%, 3/15/29 | 70,636 | ||
749,991 | ||||
Consumer Discretionary — 0.9% | ||||
60,000 | Ford Motor Co., 3.250%, 2/12/32 | 61,440 | ||
56,000 | General Motors Financial Co., Inc., 5.650%, 1/17/29 | 66,461 | ||
59,000 | Home Depot, Inc. (The), 5.950%, 4/1/41 | 84,866 | ||
94,000 | Hyundai Capital America, 144a, 2.650%, 2/10/25 | 96,368 | ||
113,000 | Lowe's Cos, Inc., 4.500%, 4/15/30 | 131,294 | ||
142,000 | Procter & Gamble Co. (The), 1.200%, 10/29/30 | 134,448 | ||
95,000 | Walmart, Inc., 2.850%, 7/8/24 | 99,289 | ||
674,166 | ||||
Materials — 0.2% | ||||
83,000 | Sherwin-Williams Co. (The), 4.500%, 6/1/47 | 103,777 | ||
Total Corporate Bonds | $10,976,882 | |||
U.S. Treasury Obligations — 14.0% | ||||
1,345,000 | U.S. Treasury Bond, 1.750%, 8/15/41 | 1,308,223 | ||
95,000 | U.S. Treasury Bond, 1.875%, 2/15/41 | 94,328 | ||
1,990,000 | U.S. Treasury Note, 0.125%, 4/30/23 | 1,979,428 | ||
2,375,000 | U.S. Treasury Note, 0.250%, 10/31/25 | 2,296,421 | ||
1,725,000 | U.S. Treasury Note, 0.375%, 3/31/22 | 1,726,170 | ||
1,650,000 | U.S. Treasury Note, 0.750%, 5/31/26 | 1,617,000 | ||
1,106,000 | U.S. Treasury Note, 1.625%, 5/15/31 | 1,121,208 | ||
Total U.S. Treasury Obligations | $10,142,778 |
Shares | ||||
Exchange-Traded Fund — 1.7% | ||||
11,188 | iShares JP Morgan USD Emerging Markets Bond ETF | 1,220,163 |
Principal Amount | ||||
U.S. Government Mortgage-Backed Obligations — 0.9% | ||||
$ 135,883 | FHLMC, Pool #G05624, 4.500%, 9/1/39 | 150,350 | ||
97,296 | FHLMC, Pool #Q29260, 4.000%, 10/1/44 | 106,831 | ||
56,293 | FNMA, Pool #725423, 5.500%, 5/1/34 | 63,073 | ||
51,327 | FNMA, Pool #725610, 5.500%, 7/1/34 | 58,233 | ||
10,206 | FNMA, Pool #890310, 4.500%, 12/1/40 | 11,235 | ||
38,195 | FNMA, Pool #AD9193, 5.000%, 9/1/40 | 43,120 | ||
178,685 | FNMA, Pool #AL5718, 3.500%, 9/1/44 | 192,440 | ||
Total U.S. Government Mortgage-Backed Obligations | $625,282 |
Principal Amount | MarketValue | |||
Sovereign Government Obligations — 0.2% | ||||
$ 146,000 | Peruvian Government International Bond, 2.780%, 12/1/60 | $ 128,117 |
Shares | ||||
Short-Term Investment Fund — 1.2% | ||||
894,202 | Dreyfus Government Cash Management, Institutional Shares, 0.03%∞Ω | $ 894,202 | ||
Total Investment Securities—100.1% (Cost $60,698,817) | $72,304,136 | |||
Liabilities in Excess of Other Assets — (0.1%) | (62,284) | |||
Net Assets — 100.0% | $72,241,852 |
(A) | Variable rate security - Rate reflected is the rate in effect as of December 31, 2021. |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-Day SEC yield as of December 31, 2021. |
Portfolio Abbreviations: |
ADR – American Depositary Receipt |
DAC – Designated Activity Company |
ETF – Exchange-Traded Fund |
FHLMC – Federal Home Loan Mortgage Corporation |
FNMA – Federal National Mortgage Association |
LIBOR – London Interbank Offered Rate |
LLC – Limited Liability Company |
LP – Limited Partnership |
MTN – Medium Term Note |
PLC – Public Limited Company |
REIT – Real Estate Investment Trust |
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 December 31, 2021, these securities were valued at $1,640,211 or 2.3% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. |
Valuation Inputs at Reporting Date: | ||||
Description | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | $48,316,712 | $— | $— | $48,316,712 |
Corporate Bonds | — | 10,976,882 | — | 10,976,882 |
U.S. Treasury Obligations | — | 10,142,778 | — | 10,142,778 |
Exchange-Traded Fund | 1,220,163 | — | — | 1,220,163 |
U.S. Government Mortgage-Backed Obligations | — | 625,282 | — | 625,282 |
Sovereign Government Obligations | — | 128,117 | — | 128,117 |
Short-Term Investment Fund | 894,202 | — | — | 894,202 |
Total | $50,431,077 | $21,873,059 | $— | $72,304,136 |
Principal Amount | Market Value | |||
Corporate Bonds — 34.8% | ||||
Financials — 9.8% | ||||
$ 400,000 | AerCap Ireland Capital DAC / AerCap Global Aviation Trust (Ireland), 2.450%, 10/29/26 | $ 403,545 | ||
378,000 | Allstate Corp. (The), 1.450%, 12/15/30 | 357,753 | ||
572,579 | American Financial Group, Inc., 5.250%, 4/2/30 | 682,892 | ||
283,000 | Ares Capital Corp., 3.250%, 7/15/25 | 292,401 | ||
200,000 | Bank of America Corp., 2.687%, 4/22/32 | 203,195 | ||
250,000 | Bank of America Corp., 3.705%, 4/24/28 | 271,481 | ||
401,000 | Bank of America Corp., MTN, 4.000%, 1/22/25 | 428,397 | ||
335,000 | Bank of Montreal (Canada), 3.803%, 12/15/32 | 359,572 | ||
230,000 | Bank of Nova Scotia (The) (Canada), (3M LIBOR +0.620%), 0.834%, 9/19/22(A) | 230,794 | ||
374,000 | Bank of Nova Scotia (The) (Canada), Ser 2, 3.625%, 10/27/81 | 361,299 | ||
176,000 | Berkshire Hathaway Finance Corp., 4.250%, 1/15/49 | 216,863 | ||
204,000 | BNP Paribas SA (France), 144a, 4.625%, 3/13/27 | 226,261 | ||
464,000 | Charles Schwab Corp. (The), 1.150%, 5/13/26 | 458,002 | ||
323,000 | Citigroup, Inc., 0.981%, 5/1/25 | 320,512 | ||
225,000 | Citigroup, Inc., 3.200%, 10/21/26 | 238,563 | ||
141,000 | Citigroup, Inc., 4.750%, 5/18/46 | 173,933 | ||
318,000 | Cooperatieve Rabobank UA (Netherlands), 144a, 1.106%, 2/24/27 | 308,693 | ||
365,000 | Corestates Capital III, 144a, (3M LIBOR +0.570%), 0.726%, 2/15/27(A) | 355,035 | ||
352,000 | Goldman Sachs Group, Inc. (The), 2.615%, 4/22/32 | 354,929 | ||
182,000 | Goldman Sachs Group, Inc. (The), 3.691%, 6/5/28 | 196,113 | ||
205,000 | HSBC Holdings PLC (United Kingdom), 3.900%, 5/25/26 | 221,203 | ||
349,000 | Huntington Bancshares, Inc., 2.550%, 2/4/30 | 354,640 | ||
256,000 | JPMorgan Chase & Co., 2.956%, 5/13/31 | 265,326 | ||
336,000 | JPMorgan Chase & Co., 3.509%, 1/23/29 | 360,208 | ||
343,000 | Lloyds Banking Group PLC (United Kingdom), 3.574%, 11/7/28 | 366,582 | ||
374,000 | Mastercard, Inc., 2.000%, 11/18/31 | 373,314 | ||
311,000 | Morgan Stanley, 3.950%, 4/23/27 | 342,172 | ||
273,000 | Northwestern Mutual Life Insurance Co. (The), 144a, 3.850%, 9/30/47 | 308,791 | ||
356,000 | PNC Capital Trust, (3M LIBOR +0.570%), 0.741%, 6/1/28(A) | 346,340 | ||
304,000 | Toronto-Dominion Bank (The) (Canada), MTN, 1.150%, 6/12/25 | 301,576 | ||
551,000 | Truist Bank, Ser A, (3M LIBOR +0.670%), 0.820%, 5/15/27(A) | 535,806 | ||
210,000 | Truist Financial Corp., MTN, 2.850%, 10/26/24 | 219,480 | ||
10,435,671 | ||||
Industrials — 3.1% | ||||
250,000 | Amcor Flexibles North America, Inc., 2.630%, 6/19/30 | 251,145 | ||
79,000 | Boeing Co. (The), 5.040%, 5/1/27 | 89,007 | ||
91,000 | Boeing Co. (The), 5.805%, 5/1/50 | 123,624 | ||
272,000 | Burlington Northern Santa Fe LLC, 5.750%, 5/1/40 | 378,488 | ||
384,000 | CNH Industrial Capital LLC, 1.450%, 7/15/26 | 375,984 | ||
340,000 | FedEx Corp., 5.100%, 1/15/44 | 432,380 | ||
298,000 | John Deere Capital Corp., MTN, 2.450%, 1/9/30 | 307,240 | ||
243,000 | Norfolk Southern Corp., 4.837%, 10/1/41 | 307,006 | ||
285,000 | Roper Technologies, Inc., 2.950%, 9/15/29 | 295,044 | ||
361,000 | Waste Management, Inc., 2.500%, 11/15/50 | 344,864 | ||
423,000 | Weir Group PLC (The) (United Kingdom), 144a, 2.200%, 5/13/26 | 417,322 | ||
3,322,104 | ||||
Energy — 3.0% | ||||
270,000 | Aker BP ASA (Norway), 144a, 3.000%, 1/15/25 | 279,913 | ||
333,000 | Boardwalk Pipelines LP, 4.800%, 5/3/29 | 373,246 |
Principal Amount | Market Value | |||
Energy — (Continued) | ||||
$ 227,000 | Canadian Natural Resources Ltd. (Canada), 6.250%, 3/15/38 | $ 299,319 | ||
207,000 | Cenovus Energy, Inc. (Canada), 5.250%, 6/15/37 | 245,101 | ||
371,000 | Cheniere Energy Partners LP, 144a, 3.250%, 1/31/32 | 374,710 | ||
200,000 | Continental Resources, Inc., 144a, 5.750%, 1/15/31 | 235,524 | ||
395,000 | Energy Transfer LP, 4.150%, 9/15/29 | 422,940 | ||
193,000 | MC Brazil Downstream Trading SARL (Brazil), 144a, 7.250%, 6/30/31 | 192,131 | ||
251,000 | NGPL PipeCo LLC, 144a, 7.768%, 12/15/37 | 352,124 | ||
203,000 | Ovintiv Exploration, Inc., 5.375%, 1/1/26 | 224,952 | ||
206,000 | Petroleos Mexicanos (Mexico), 6.625%, 6/15/35 | 197,924 | ||
3,197,884 | ||||
Communication Services — 3.0% | ||||
104,000 | Alphabet, Inc., 1.900%, 8/15/40 | 95,009 | ||
266,000 | AT&T, Inc., 3.850%, 6/1/60 | 279,011 | ||
238,000 | AT&T, Inc., 4.500%, 5/15/35 | 275,316 | ||
355,000 | British Telecommunications PLC (United Kingdom), 144a, 3.250%, 11/8/29 | 363,220 | ||
209,000 | Charter Communications Operating LLC / Charter Communications Operating Capital, 6.484%, 10/23/45 | 286,208 | ||
243,000 | Comcast Corp., 4.000%, 3/1/48 | 280,867 | ||
124,000 | Deutsche Telekom International Finance BV (Germany), 8.750%, 6/15/30 | 180,342 | ||
310,000 | Netflix, Inc., 144a, 4.875%, 6/15/30 | 361,537 | ||
335,000 | T-Mobile USA, Inc., 3.875%, 4/15/30 | 366,867 | ||
439,000 | Verizon Communications, Inc., 2.987%, 10/30/56 | 417,362 | ||
190,000 | ViacomCBS, Inc., 4.950%, 5/19/50 | 243,028 | ||
3,148,767 | ||||
Consumer Staples — 2.9% | ||||
380,000 | 7-Eleven, Inc., 144a, 0.950%, 2/10/26 | 368,158 | ||
439,000 | Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide, Inc. (Belgium), 4.900%, 2/1/46 | 556,588 | ||
434,000 | Imperial Brands Finance PLC (United Kingdom), 144a, 4.250%, 7/21/25 | 466,152 | ||
374,000 | JBS Finance Luxembourg Sarl, 144a, 2.500%, 1/15/27 | 369,796 | ||
213,000 | Kroger Co. (The), 5.000%, 4/15/42 | 271,008 | ||
336,000 | Mars, Inc., 144a, 3.875%, 4/1/39 | 389,363 | ||
454,000 | Reynolds American, Inc. (United Kingdom), 4.450%, 6/12/25 | 490,199 | ||
164,000 | Starbucks Corp., 3.350%, 3/12/50 | 172,126 | ||
3,083,390 | ||||
Information Technology — 2.8% | ||||
344,000 | Apple, Inc., 2.750%, 1/13/25 | 359,508 | ||
234,000 | Apple, Inc., 4.650%, 2/23/46 | 307,919 | ||
330,000 | Broadcom, Inc., 4.150%, 11/15/30 | 366,357 | ||
290,000 | Fiserv, Inc., 3.500%, 7/1/29 | 312,153 | ||
370,000 | Microchip Technology, Inc., 144a, 0.983%, 9/1/24 | 363,279 | ||
148,000 | Microsoft Corp., 3.500%, 2/12/35 | 169,346 | ||
328,000 | NXP BV / NXP Funding LLC (China), 144a, 5.350%, 3/1/26 | 370,751 | ||
174,000 | Oracle Corp., 2.650%, 7/15/26 | 178,913 | ||
220,000 | Visa, Inc., 4.150%, 12/14/35 | 263,665 | ||
332,000 | VMware, Inc., 1.400%, 8/15/26 | 326,474 | ||
3,018,365 | ||||
Health Care — 2.7% | ||||
283,000 | AbbVie, Inc., 4.450%, 5/14/46 | 343,335 | ||
232,000 | Alcon Finance Corp. (Switzerland), 144a, 3.800%, 9/23/49 | 259,261 | ||
221,000 | Becton Dickinson and Co., 4.685%, 12/15/44 | 278,146 | ||
229,000 | Bristol-Myers Squibb Co., 5.000%, 8/15/45 | 305,145 |
Principal Amount | Market Value | |||
Corporate Bonds — 34.8% (Continued) | ||||
Health Care — (Continued) | ||||
$ 263,000 | CommonSpirit Health, 4.187%, 10/1/49 | $ 307,079 | ||
190,000 | CommonSpirit Health, 4.200%, 8/1/23 | 198,703 | ||
240,000 | CVS Health Corp., 5.125%, 7/20/45 | 312,913 | ||
293,000 | DH Europe Finance II Sarl, 3.250%, 11/15/39 | 313,608 | ||
234,000 | Mylan, Inc., 4.550%, 4/15/28 | 262,115 | ||
312,000 | UnitedHealth Group, Inc., 3.500%, 8/15/39 | 346,841 | ||
2,927,146 | ||||
Utilities — 2.6% | ||||
222,000 | American Water Capital Corp., 6.593%, 10/15/37 | 320,896 | ||
349,000 | Cleveland Electric Illuminating Co. (The), 144a, 4.550%, 11/15/30 | 400,961 | ||
93,000 | Duke Energy Progress LLC, 4.150%, 12/1/44 | 109,583 | ||
207,000 | Edison International, 4.125%, 3/15/28 | 218,635 | ||
224,000 | Electricite de France SA (France), 144a, 4.875%, 9/21/38 | 271,605 | ||
85,000 | Fortis, Inc. (Canada), 3.055%, 10/4/26 | 88,529 | ||
338,000 | Ohio Power Co., 2.900%, 10/1/51 | 327,255 | ||
372,000 | Pacific Gas and Electric Co., 3.500%, 8/1/50 | 345,787 | ||
127,000 | PacifiCorp., 5.750%, 4/1/37 | 167,455 | ||
532,000 | WEC Energy Group, Inc., (3M LIBOR +2.112%), 2.268%, 5/15/67(A) | 494,095 | ||
2,744,801 | ||||
Real Estate — 2.2% | ||||
361,000 | Crown Castle International Corp. REIT, 3.650%, 9/1/27 | 388,062 | ||
236,000 | Equinix, Inc. REIT, 2.900%, 11/18/26 | 244,628 | ||
285,000 | Healthcare Realty Trust, Inc. REIT, 2.400%, 3/15/30 | 283,895 | ||
338,000 | Host Hotels & Resorts LP REIT, 4.500%, 2/1/26 | 364,331 | ||
186,000 | Mid-America Apartments LP REIT, 3.750%, 6/15/24 | 195,824 | ||
250,000 | Realty Income Corp. REIT, 4.600%, 2/6/24 | 265,931 | ||
290,000 | Sabra Health Care LP REIT, 5.125%, 8/15/26 | 319,242 | ||
96,000 | STORE Capital Corp. REIT, 4.500%, 3/15/28 | 106,151 | ||
188,000 | STORE Capital Corp. REIT, 4.625%, 3/15/29 | 210,787 | ||
2,378,851 | ||||
Consumer Discretionary — 2.1% | ||||
202,000 | Ford Motor Co., 3.250%, 2/12/32 | 206,848 | ||
169,000 | General Motors Financial Co., Inc., 5.650%, 1/17/29 | 200,571 | ||
227,000 | Home Depot, Inc. (The), 5.950%, 4/1/41 | 326,519 | ||
316,000 | Hyundai Capital America, 144a, 2.650%, 2/10/25 | 323,960 | ||
308,000 | Lowe's Cos, Inc., 4.500%, 4/15/30 | 357,865 | ||
490,000 | Procter & Gamble Co. (The), 1.200%, 10/29/30 | 463,941 | ||
1,334 | United Airlines 2014-2 Class B Pass Through Trust, Ser B, 4.625%, 9/3/22 | 1,357 | ||
333,000 | Walmart, Inc., 2.850%, 7/8/24 | 348,032 | ||
2,229,093 | ||||
Materials — 0.6% | ||||
83,000 | Braskem America Finance Co. (Brazil), 144a, 7.125%, 7/22/41 | 107,174 | ||
176,000 | Braskem Netherlands Finance BV (Brazil), 144a, 5.875%, 1/31/50 | 202,840 | ||
301,000 | Sherwin-Williams Co. (The), 4.500%, 6/1/47 | 376,346 | ||
686,360 | ||||
Total Corporate Bonds | $37,172,432 | |||
U.S. Treasury Obligations — 34.3% | ||||
8,875,000 | U.S. Treasury Bond, 1.750%, 8/15/41 | 8,632,324 | ||
4,040,000 | U.S. Treasury Bond, 1.875%, 2/15/41 | 4,011,436 | ||
9,370,000 | U.S. Treasury Note, 0.125%, 4/30/23 | 9,320,222 | ||
2,380,000 | U.S. Treasury Note, 0.250%, 10/31/25 | 2,301,255 | ||
4,030,000 | U.S. Treasury Note, 0.375%, 3/31/22 | 4,032,734 | ||
4,685,000 | U.S. Treasury Note, 0.750%, 5/31/26 | 4,591,300 |
Principal Amount | Market Value | |||
U.S. Treasury Obligations — 34.3% (Continued) | ||||
$ 66,000 | U.S. Treasury Note, 1.250%, 8/15/31 | $ 64,608 | ||
3,613,000 | U.S. Treasury Note, 1.625%, 5/15/31 | 3,662,679 | ||
Total U.S. Treasury Obligations | $36,616,558 | |||
U.S. Government Mortgage-Backed Obligations — 6.6% | ||||
48,279 | FHLMC, Pool #A95946, 4.000%, 1/1/41 | 53,041 | ||
37,805 | FHLMC, Pool #A96485, 4.500%, 1/1/41 | 41,827 | ||
12,890 | FHLMC, Pool #G03217, 5.500%, 9/1/37 | 14,338 | ||
6,506 | FHLMC, Pool #G03781, 6.000%, 1/1/38 | 7,490 | ||
254,781 | FHLMC, Pool #G05624, 4.500%, 9/1/39 | 281,905 | ||
316,738 | FHLMC, Pool #Q29056, 4.000%, 10/1/44 | 347,764 | ||
159,457 | FHLMC, Pool #Q29260, 4.000%, 10/1/44 | 175,084 | ||
598,859 | FHLMC REMIC, Pool #QD2143, 2.000%, 12/1/51 | 597,865 | ||
3,485 | FNMA, Pool #561741, 7.500%, 1/1/31 | 3,902 | ||
211,841 | FNMA, Pool #725423, 5.500%, 5/1/34 | 237,355 | ||
190,100 | FNMA, Pool #725610, 5.500%, 7/1/34 | 215,676 | ||
4,607 | FNMA, Pool #889734, 5.500%, 6/1/37 | 5,265 | ||
28,437 | FNMA, Pool #AB1149, 5.000%, 6/1/40 | 32,259 | ||
28,328 | FNMA, Pool #AB1800, 4.000%, 11/1/40 | 31,119 | ||
48,869 | FNMA, Pool #AD3795, 4.500%, 4/1/40 | 54,038 | ||
68,234 | FNMA, Pool #AD9150, 5.000%, 8/1/40 | 77,378 | ||
127,318 | FNMA, Pool #AD9193, 5.000%, 9/1/40 | 143,732 | ||
85,679 | FNMA, Pool #AE0548, 4.500%, 11/1/40 | 94,739 | ||
70,827 | FNMA, Pool #AE4429, 4.000%, 10/1/40 | 77,762 | ||
3,198 | FNMA, Pool #AH2666, 4.000%, 1/1/26 | 3,360 | ||
5,783 | FNMA, Pool #AH3493, 4.000%, 2/1/26 | 6,089 | ||
113,239 | FNMA, Pool #AJ5457, 4.000%, 11/1/41 | 124,356 | ||
105,920 | FNMA, Pool #AL0054, 4.500%, 2/1/41 | 117,131 | ||
221,356 | FNMA, Pool #AL5718, 3.500%, 9/1/44 | 238,396 | ||
284,143 | FNMA, Pool #AR9195, 3.000%, 3/1/43 | 300,364 | ||
94,177 | FNMA, Pool #AS7813, 4.000%, 8/1/46 | 102,416 | ||
237,661 | FNMA, Pool #AT2016, 3.000%, 4/1/43 | 251,671 | ||
193,845 | FNMA, Pool #BC1158, 3.500%, 2/1/46 | 206,916 | ||
363,672 | FNMA, Pool #FM4996, 2.000%, 12/1/50 | 363,678 | ||
380,105 | FNMA, Pool #FM5166, 3.000%, 12/1/50 | 395,585 | ||
344,464 | FNMA, Pool #FM5279, 3.500%, 11/1/50 | 362,856 | ||
278,462 | FNMA, Pool #FM5468, 2.500%, 1/1/36 | 288,159 | ||
330,494 | FNMA, Pool #FM5682, 2.500%, 1/1/51 | 338,467 | ||
109,401 | FNMA, Pool #MA1175, 3.000%, 9/1/42 | 115,565 | ||
73,304 | FNMA, Pool #MA2177, 4.000%, 2/1/35 | 79,708 | ||
436,904 | FNMA, Pool #MA4166, 3.000%, 10/1/40 | 455,209 | ||
90,437 | GNMA, Pool #4853, 4.000%, 11/20/40 | 97,968 | ||
67,746 | GNMA, Pool #4883, 4.500%, 12/20/40 | 74,590 | ||
270,022 | GNMA, Pool #5175, 4.500%, 9/20/41 | 299,041 | ||
20,947 | GNMA, Pool #736696, 4.500%, 5/15/40 | 23,370 | ||
155,215 | GNMA, Pool #AD1745, 3.000%, 2/20/43 | 165,295 | ||
100,252 | GNMA, Pool #MA1157, 3.500%, 7/20/43 | 107,428 | ||
Total U.S. Government Mortgage-Backed Obligations | $7,010,157 | |||
Asset-Backed Securities — 5.3% | ||||
265,000 | Apidos CLO XVIII (Cayman Islands), Ser 2018-18A, Class A1, 144a, (3M LIBOR +1.140%), 1.268%, 10/22/30(A) | 265,024 | ||
400,000 | Benefit Street Partners CLO XIX Ltd. (Cayman Islands), Ser 2019-19A, Class B, 144a, (3M LIBOR +2.000%), 2.124%, 1/15/33(A) | 400,026 | ||
230,126 | CF Hippolyta LLC, Ser 2020-1, Class A1, 144a, 1.690%, 7/15/60 | 228,321 | ||
275,000 | CIFC Funding Ltd. (Cayman Islands), Ser 2016-1A, Class ARR, 144a, (3M LIBOR +1.080%), 1.255%, 10/21/31(A) | 274,873 | ||
705,063 | Driven Brands Funding LLC, Ser 2019-1A, Class A2, 144a, 4.641%, 4/20/49 | 743,223 |
Principal Amount | Market Value | |||
Asset-Backed Securities — 5.3% (Continued) | ||||
$ 350,000 | Driven Brands Funding LLC, Ser 2021-1A, Class A2, 144a, 2.791%, 10/20/51 | $ 344,056 | ||
352,822 | Elara HGV Timeshare Issuer LLC, Ser 2019-A, Class B, 144a, 2.910%, 1/25/34 | 352,763 | ||
297,750 | Jack In The Box Funding LLC, Ser 2019-1A, Class A2I, 144a, 3.982%, 8/25/49 | 299,198 | ||
268,000 | Jersey Mike's Funding, Ser 2019-1A, Class A2, 144a, 4.433%, 2/15/50 | 281,338 | ||
241,250 | Jimmy Johns Funding LLC, Ser 2017-1A, Class A2II, 144a, 4.846%, 7/30/47 | 254,967 | ||
375,000 | Madison Park Funding XLIX Ltd. (Cayman Islands), Ser 2021-49A, Class B1, 144a, (3M LIBOR +1.700%), 1.819%, 10/19/34(A) | 375,105 | ||
275,000 | Madison Park Funding XXXV Ltd. (Cayman Islands), Ser 2019-35A, Class A2AR, 144a, (3M LIBOR +1.200%), 1.331%, 4/20/32(A) | 275,050 | ||
289,383 | Mill City Mortgage Loan Trust, Ser 2018-3, Class M3, 144a, 3.250%, 8/25/58(A)(B) | 295,960 | ||
350,000 | New Mountain CLO 1 Ltd. (Cayman Islands), Ser CLO-1A, Class AR, 144a, (3M LIBOR +1.200%), 1.317%, 10/15/34(A) | 349,998 | ||
286,688 | TAL Advantage VII LLC, Ser 2020-1A, Class A, 144a, 2.050%, 9/20/45 | 284,661 | ||
380,000 | Voya CLO Ltd. (Cayman Islands), Ser 2017-4A, Class A1, 144a, (3M LIBOR +1.130%), 1.254%, 10/15/30(A) | 380,020 | ||
275,000 | Voya CLO Ltd. (Cayman Islands), Ser 2019-2A, Class A, 144a, (3M LIBOR +1.270%), 1.401%, 7/20/32(A) | 275,007 | ||
Total Asset-Backed Securities | $5,679,590 | |||
Commercial Mortgage-Backed Securities — 4.9% | ||||
675,000 | BANK, Ser 2018-BN14, Class A3, 3.966%, 9/15/60 | 742,924 | ||
750,000 | BHMS, Ser 2018-ATLS, Class A, 144a, (1M LIBOR +1.250%), 1.360%, 7/15/35(A) | 749,519 | ||
500,000 | BPR Trust, Ser 2021-KEN, Class B, 144a, (1M LIBOR +1.950%), 2.060%, 2/15/29(A) | 499,895 | ||
360,000 | DBUBS Mortgage Trust, Ser 2017-BRBK, Class B, 144a, 3.530%, 10/10/34(A)(B) | 372,161 | ||
375,000 | GS Mortgage Securities Corp. II, Ser 2017-SLP, Class B, 144a, 3.772%, 10/10/32 | 379,671 | ||
250,000 | GS Mortgage Securities Trust, Ser 2017-FARM, Class B, 144a, 3.541%, 1/10/43(A)(B) | 263,335 | ||
315,000 | HONO Mortgage Trust, Ser 2021-LULU, Class B, 144a, (1M LIBOR +1.450%), 1.560%, 10/15/36(A) | 314,280 | ||
350,000 | JPMorgan Chase Commercial Mortgage Securities Trust, Ser 2018-MINN, Class A, 144a, (1M LIBOR +1.020%), 2.270%, 11/15/35(A) | 351,002 | ||
320,000 | New York City Housing Development Corp., Ser 2014-8SPR, Class B, 3.864%, 2/15/48 | 335,588 | ||
675,000 | SG Commercial Mortgage Securities Trust, Ser 2019-787E, Class A, 144a, 4.163%, 2/15/41 | 754,645 | ||
481,357 | WFRBS Commercial Mortgage Trust, Ser 2014-C19, Class A3, 3.660%, 3/15/47 | 481,572 | ||
Total Commercial Mortgage-Backed Securities | $5,244,592 |
Shares | ||||
Exchange-Traded Fund — 4.7% | ||||
45,431 | iShares JP Morgan USD Emerging Markets Bond ETF | 4,954,705 |
Principal Amount | ||||
Non-Agency Collateralized Mortgage Obligations — 3.3% | ||||
$ 93,080 | Agate Bay Mortgage Trust, Ser 2013-1, Class B3, 144a, 3.580%, 7/25/43(A)(B) | 93,831 |
Principal Amount | MarketValue | |||
Non-Agency Collateralized Mortgage Obligations — 3.3% (Continued) | ||||
$ 353,144 | Agate Bay Mortgage Trust, Ser 2015-4, Class B2, 144a, 3.541%, 6/25/45(A)(B) | $ 355,793 | ||
322,075 | Agate Bay Mortgage Trust, Ser 2015-7, Class B1, 144a, 3.676%, 10/25/45(A)(B) | 325,039 | ||
219,971 | CSMC Trust, Ser 2013-IVR3, Class B2, 144a, 3.378%, 5/25/43(A)(B) | 221,565 | ||
278,791 | CSMC Trust, Ser 2015-1, Class B3, 144a, 3.930%, 1/25/45(A)(B) | 280,649 | ||
178,513 | CSMC Trust, Ser 2015-WIN1, Class B3, 144a, 3.829%, 12/25/44(A)(B) | 178,747 | ||
575 | Deutsche ALT-A Securities, Inc. ALT, Ser 2003-2XS, Class A6, 5.470%, 9/25/33(A)(B) | 577 | ||
104,851 | EverBank Mortgage Loan Trust, Ser 2013-1, Class B1, 144a, 3.467%, 3/25/43(A)(B) | 105,680 | ||
306,636 | GS Mortgage-Backed Securities Trust, Ser 2021-PJ6, Class A2, 144a, 2.500%, 11/25/51(A)(B) | 306,979 | ||
509,634 | JP Morgan Mortgage Trust, Ser 2017-1, Class B2, 144a, 3.469%, 1/25/47(A)(B) | 516,015 | ||
80,153 | Residential Asset Securitization Trust, Ser 2006-A1, Class 1A3, 6.000%, 4/25/36 | 52,383 | ||
82,157 | Sequoia Mortgage Trust, Ser 2013-10, Class B2, 144a, 3.540%, 8/25/43(A)(B) | 82,684 | ||
107,458 | Sequoia Mortgage Trust, Ser 2013-5, Class B1, 144a, 3.505%, 5/25/43(A)(B) | 108,385 | ||
453,661 | Sequoia Mortgage Trust, Ser 2018-CH3, Class B1B, 144a, 4.763%, 8/25/48(A)(B) | 464,056 | ||
411,130 | Sequoia Mortgage Trust, Ser 2018-CH3, Class B2B, 144a, 4.763%, 8/25/48(A)(B) | 419,634 | ||
25,088 | Washington Mutual Mortgage Pass-Through Certificates, Ser 2005-9, Class 2A4, 5.500%, 11/25/35 | 25,707 | ||
Total Non-Agency Collateralized Mortgage Obligations | $3,537,724 | |||
Sovereign Government Obligations — 1.8% | ||||
210,000 | Bahamas Government International Bond, 144a, 6.000%, 11/21/28 | 179,290 | ||
202,000 | Chile Government International Bond, 3.100%, 5/7/41 | 197,657 | ||
306,000 | Chile Government International Bond, 3.100%, 1/22/61 | 283,772 | ||
206,000 | Colombia Government International Bond, 3.250%, 4/22/32 | 185,142 | ||
226,000 | Ecuador Government International Bond, 144a, 5.000%, 7/31/30 | 187,297 | ||
210,000 | Egypt Government International Bond, 144a, 5.875%, 2/16/31 | 185,783 | ||
210,000 | Ghana Government International Bond, 144a, 7.625%, 5/16/29 | 174,783 | ||
205,000 | Nigeria Government International Bond, 144a, 7.625%, 11/28/47 | 183,098 | ||
153,000 | Panama Government International Bond, 4.300%, 4/29/53 | 164,247 | ||
200,000 | Republic of Uzbekistan International Bond, 144a, 3.700%, 11/25/30 | 191,800 | ||
Total Sovereign Government Obligations | $1,932,869 | |||
Agency Collateralized Mortgage Obligations — 0.9% | ||||
600,722 | FHLMC REMIC, Ser 3859, Class JB, 5.000%, 5/15/41 | 663,787 | ||
16,917 | FNMA REMIC, Ser 2015-51, Class KC, 3.000%, 6/25/45 | 17,041 | ||
292,845 | FNMA REMIC, Ser 2017-90, Class KA, 3.000%, 11/25/47 | 305,567 | ||
Total Agency Collateralized Mortgage Obligations | $986,395 |
Shares | MarketValue | |||
Short-Term Investment Fund — 3.1% | ||||
3,346,970 | Dreyfus Government Cash Management, Institutional Shares, 0.03%∞Ω | $ 3,346,970 | ||
Total Investment Securities—99.7% (Cost $104,066,581) | $106,481,992 | |||
Other Assets in Excess of Liabilities — 0.3% | 268,383 | |||
Net Assets — 100.0% | $106,750,375 |
(A) | Variable rate security - Rate reflected is the rate in effect as of December 31, 2021. |
(B) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
∞ | Open-End Fund. |
Ω | Represents the 7-Day SEC yield as of December 31, 2021. |
Portfolio Abbreviations: |
CLO – Collateralized Loan Obligation |
DAC – Designated Activity Company |
ETF – Exchange-Traded Fund |
FHLMC – Federal Home Loan Mortgage Corporation |
FNMA – Federal National Mortgage Association |
GNMA – Government National Mortgage Association |
LIBOR – London Interbank Offered Rate |
LLC – Limited Liability Company |
LP – Limited Partnership |
MTN – Medium Term Note |
PLC – Public Limited Company |
REIT – Real Estate Investment Trust |
REMIC – Real Estate Mortgage Investment Conduit |
144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2021, these securities were valued at $21,593,767 or 20.2% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. |
Valuation Inputs at Reporting Date: | ||||
Description | Level 1 | Level 2 | Level 3 | Total |
Corporate Bonds | $— | $37,172,432 | $— | $37,172,432 |
U.S. Treasury Obligations | — | 36,616,558 | — | 36,616,558 |
U.S. Government Mortgage-Backed Obligations | — | 7,010,157 | — | 7,010,157 |
Asset-Backed Securities | — | 5,679,590 | — | 5,679,590 |
Commercial Mortgage-Backed Securities | — | 5,244,592 | — | 5,244,592 |
Exchange-Traded Fund | 4,954,705 | — | — | 4,954,705 |
Non-Agency Collateralized Mortgage Obligations | — | 3,537,724 | — | 3,537,724 |
Sovereign Government Obligations | — | 1,932,869 | — | 1,932,869 |
Agency Collateralized Mortgage Obligations | — | 986,395 | — | 986,395 |
Short-Term Investment Fund | 3,346,970 | — | — | 3,346,970 |
Total | $8,301,675 | $98,180,317 | $— | $106,481,992 |
Shares | Market Value | |||
Common Stocks — 98.5% | ||||
Information Technology — 27.7% | ||||
95,876 | Apple, Inc. | $ 17,024,701 | ||
22,843 | International Business Machines Corp. | 3,053,196 | ||
66,368 | Microsoft Corp. | 22,320,886 | ||
58,641 | Oracle Corp. | 5,114,082 | ||
27,302 | salesforce.com, Inc.* | 6,938,257 | ||
41,743 | SS&C Technologies Holdings, Inc. | 3,422,091 | ||
25,987 | Texas Instruments, Inc. | 4,897,770 | ||
21,037 | Visa, Inc. - Class A | 4,558,928 | ||
14,663 | Workday, Inc. - Class A* | 4,005,638 | ||
71,335,549 | ||||
Communication Services — 18.1% | ||||
5,368 | Alphabet, Inc. - Class C* | 15,532,791 | ||
88,597 | AT&T, Inc. | 2,179,486 | ||
90,854 | Comcast Corp. - Class A | 4,572,682 | ||
67,213 | Fox Corp. - Class A | 2,480,160 | ||
45,692 | Meta Platforms, Inc. - Class A* | 15,368,504 | ||
7,382 | Netflix, Inc.* | 4,447,212 | ||
13,272 | Walt Disney Co. (The)* | 2,055,700 | ||
46,636,535 | ||||
Health Care — 13.3% | ||||
28,055 | AmerisourceBergen Corp. | 3,728,229 | ||
40,141 | BioMarin Pharmaceutical, Inc.* | 3,546,458 | ||
96,298 | Bristol-Myers Squibb Co. | 6,004,180 | ||
19,749 | HCA Healthcare, Inc. | 5,073,913 | ||
43,542 | Johnson & Johnson | 7,448,730 | ||
16,842 | UnitedHealth Group, Inc. | 8,457,042 | ||
34,258,552 | ||||
Financials — 10.9% | ||||
163,880 | Bank of America Corp. | 7,291,021 | ||
32,185 | Berkshire Hathaway, Inc. - Class B* | 9,623,315 | ||
19,021 | Goldman Sachs Group, Inc. (The) | 7,276,484 | ||
12,091 | Signature Bank | 3,911,076 | ||
28,101,896 | ||||
Consumer Discretionary — 9.8% | ||||
11,205 | Airbnb, Inc. - Class A* | 1,865,520 | ||
17,029 | Alibaba Group Holding Ltd. (China) ADR* | 2,022,875 | ||
3,978 | Amazon.com, Inc.* | 13,264,005 | ||
41,460 | Hilton Worldwide Holdings, Inc.* | 6,467,345 | ||
13,770 | Starbucks Corp. | 1,610,677 | ||
25,230,422 | ||||
Industrials — 9.1% | ||||
10,611 | Deere & Co. | 3,638,406 | ||
7,486 | FedEx Corp. | 1,936,179 | ||
27,193 | Hubbell, Inc. | 5,663,486 | ||
11,136 | Parker-Hannifin Corp. | 3,542,584 |
Shares | Market Value | |||
Industrials — (Continued) | ||||
79,709 | Raytheon Technologies Corp. | $ 6,859,757 | ||
40,799 | Southwest Airlines Co.* | 1,747,829 | ||
23,388,241 | ||||
Consumer Staples — 3.5% | ||||
48,551 | Monster Beverage Corp.* | 4,662,838 | ||
46,964 | Philip Morris International, Inc. | 4,461,580 | ||
9,124,418 | ||||
Real Estate — 2.5% | ||||
23,427 | Jones Lang LaSalle, Inc.* | 6,309,828 | ||
Energy — 2.0% | ||||
50,133 | Exxon Mobil Corp. | 3,067,638 | ||
67,838 | Schlumberger NV | 2,031,748 | ||
5,099,386 | ||||
Materials — 1.6% | ||||
50,117 | DuPont de Nemours, Inc. | 4,048,451 | ||
Total Common Stocks | $253,533,278 | |||
Short-Term Investment Fund — 0.0% | ||||
11 | Dreyfus Government Cash Management, Institutional Shares, 0.03%∞Ω | 11 | ||
Total Investment Securities—98.5% (Cost $122,655,353) | $253,533,289 | |||
Other Assets in Excess of Liabilities — 1.5% | 3,782,715 | |||
Net Assets — 100.0% | $257,316,004 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-Day SEC yield as of December 31, 2021. |
Portfolio Abbreviations: |
ADR – American Depositary Receipt |
Valuation Inputs at Reporting Date: | ||||
Description | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | $253,533,278 | $— | $— | $253,533,278 |
Short-Term Investment Fund | 11 | — | — | 11 |
Total | $253,533,289 | $— | $— | $253,533,289 |
Shares | Market Value | |||
Common Stocks — 99.5% | ||||
Consumer Discretionary — 19.6% | ||||
36,060 | American Eagle Outfitters, Inc. | $ 913,039 | ||
18,592 | Aritzia, Inc. (Canada)* | 769,431 | ||
29,450 | Foot Locker, Inc. | 1,284,904 | ||
4,300 | Fox Factory Holding Corp.* | 731,430 | ||
35,336 | Frontdoor, Inc.* | 1,295,064 | ||
15,640 | Grand Canyon Education, Inc.* | 1,340,504 | ||
53,410 | Leslie's, Inc.* | 1,263,681 | ||
19,110 | Malibu Boats, Inc. - Class A* | 1,313,430 | ||
8,900 | Oxford Industries, Inc. | 903,528 | ||
9,490 | Skyline Champion Corp.* | 749,520 | ||
26,504 | Steven Madden Ltd. | 1,231,641 | ||
9,678 | Texas Roadhouse, Inc. | 864,052 | ||
3,000 | TopBuild Corp.* | 827,730 | ||
26,916 | Zumiez, Inc.* | 1,291,699 | ||
14,779,653 | ||||
Industrials — 17.9% | ||||
6,447 | ASGN, Inc.* | 795,560 | ||
16,240 | Clean Harbors, Inc. * | 1,620,265 | ||
14,302 | Crane Co. | 1,454,942 | ||
6,150 | Curtiss-Wright Corp. | 852,821 | ||
7,060 | Forward Air Corp. | 854,895 | ||
11,165 | Gibraltar Industries, Inc.* | 744,482 | ||
48,969 | Great Lakes Dredge & Dock Corp.* | 769,793 | ||
7,758 | ITT, Inc. | 792,790 | ||
31,500 | JELD-WEN Holding, Inc.* | 830,340 | ||
4,600 | John Bean Technologies Corp. | 706,376 | ||
17,960 | KBR, Inc. | 855,255 | ||
6,533 | Quanta Services, Inc. | 749,074 | ||
5,317 | Regal Rexnord Corp. | 904,847 | ||
18,139 | SkyWest, Inc.* | 712,863 | ||
21,800 | Zurn Water Solutions Corp. | 793,520 | ||
13,437,823 | ||||
Health Care — 17.0% | ||||
49,650 | Allscripts Healthcare Solutions, Inc.* | 916,042 | ||
20,972 | Anika Therapeutics, Inc.* | 751,427 | ||
1,586 | Bio-Techne Corp. | 820,501 | ||
1,580 | Chemed Corp. | 835,883 | ||
12,823 | Encompass Health Corp. | 836,829 | ||
10,110 | Ensign Group, Inc. (The) | 848,836 | ||
11,068 | Globus Medical, Inc. - Class A* | 799,110 | ||
12,792 | Integra LifeSciences Holdings Corp.* | 856,936 | ||
6,410 | LHC Group, Inc.* | 879,644 | ||
15,497 | NuVasive, Inc.* | 813,282 | ||
4,431 | Omnicell, Inc.* | 799,530 | ||
42,518 | Premier, Inc. - Class A | 1,750,466 | ||
12,400 | Progyny, Inc.* | 624,340 | ||
23,300 | Tactile Systems Technology, Inc.* | 443,399 | ||
12,870 | Vocera Communications, Inc.* | 834,491 | ||
12,810,716 | ||||
Information Technology — 16.6% | ||||
43,400 | 8x8, Inc.* | 727,384 | ||
8,219 | Advanced Energy Industries, Inc. | 748,422 | ||
62,000 | Box, Inc. - Class A* | 1,623,780 | ||
39,831 | Cognyte Software Ltd. (Israel)* | 624,152 | ||
10,890 | CommVault Systems, Inc.* | 750,539 | ||
34,758 | Digi International, Inc.* | 854,004 | ||
5,837 | ExlService Holdings, Inc.* | 845,022 | ||
11,687 | MAXIMUS, Inc. | 931,103 | ||
13,392 | Onto Innovation, Inc.* | 1,355,672 | ||
5,408 | Qualys, Inc.* | 742,086 |
Shares | Market Value | |||
Information Technology — (Continued) | ||||
4,974 | SPS Commerce, Inc.* | $ 708,049 | ||
23,300 | Tower Semiconductor Ltd. (Israel)* | 924,544 | ||
16,311 | Verint Systems, Inc.* | 856,491 | ||
8,880 | WNS Holdings Ltd. (India) ADR* | 783,394 | ||
12,474,642 | ||||
Financials — 13.1% | ||||
19,000 | Ameris Bancorp | 943,920 | ||
6,000 | Evercore, Inc. - Class A | 815,100 | ||
88,800 | FNB Corp. | 1,077,144 | ||
13,694 | Independent Bank Group, Inc. | 988,022 | ||
23,820 | Pacific Premier Bancorp, Inc. | 953,515 | ||
10,560 | Pinnacle Financial Partners, Inc. | 1,008,480 | ||
11,000 | PJT Partners, Inc. - Class A | 814,990 | ||
72,500 | Valley National Bancorp | 996,875 | ||
20,143 | Webster Financial Corp. | 1,124,785 | ||
10,327 | Western Alliance Bancorp | 1,111,701 | ||
�� | 9,834,532 | |||
Real Estate — 5.8% | ||||
12,900 | Agree Realty Corp. REIT | 920,544 | ||
61,045 | Corporate Office Properties Trust REIT | 1,707,429 | ||
25,200 | Healthcare Realty Trust, Inc. REIT | 797,328 | ||
19,900 | STAG Industrial, Inc. REIT | 954,404 | ||
4,379,705 | ||||
Materials — 5.6% | ||||
15,500 | Ashland Global Holdings, Inc. | 1,668,730 | ||
27,700 | Axalta Coating Systems Ltd. * | 917,424 | ||
4,830 | Eagle Materials, Inc. | 804,002 | ||
19,270 | Silgan Holdings, Inc. | 825,527 | ||
4,215,683 | ||||
Communication Services — 3.8% | ||||
25,990 | Cargurus, Inc.* | 874,303 | ||
43,830 | QuinStreet, Inc.* | 797,268 | ||
10,685 | Ziff Davis, Inc.* | 1,184,539 | ||
2,856,110 | ||||
Consumer Staples — 0.1% | ||||
3,595 | Mission Produce, Inc.* | 56,441 | ||
Total Common Stocks | $74,845,305 | |||
Short-Term Investment Fund — 1.1% | ||||
840,909 | Dreyfus Government Cash Management, Institutional Shares, 0.03%∞Ω | 840,909 | ||
Total Investment Securities—100.6% (Cost $52,234,829) | $75,686,214 | |||
Liabilities in Excess of Other Assets — (0.6%) | (444,938) | |||
Net Assets — 100.0% | $75,241,276 |
* | Non-income producing security. |
∞ | Open-End Fund. |
Ω | Represents the 7-Day SEC yield as of December 31, 2021. |
Portfolio Abbreviations: |
ADR – American Depositary Receipt |
REIT – Real Estate Investment Trust |
Valuation Inputs at Reporting Date: | ||||
Description | Level 1 | Level 2 | Level 3 | Total |
Common Stocks | $74,845,305 | $— | $— | $74,845,305 |
Short-Term Investment Fund | 840,909 | — | — | 840,909 |
Total | $75,686,214 | $— | $— | $75,686,214 |
Touchstone Balanced Fund | Touchstone Bond Fund | Touchstone Common Stock Fund | Touchstone Small Company Fund | |
Assets | ||||
Investments, at cost | $60,698,817 | $104,066,581 | $122,655,353 | $52,234,829 |
Investments, at market value | $72,304,136 | $106,481,992 | $253,533,289 | $75,686,214 |
Foreign currency † | — | — | 1,123 | — |
Dividends and interest receivable | 121,728 | 489,152 | 78,326 | 41,703 |
Receivable for capital shares sold | — | 461 | — | 1,736 |
Receivable for investments sold | — | — | 4,265,896 | 102,743 |
Receivable for securities lending income | 87 | 355 | — | 29 |
Tax reclaim receivable | — | — | 36,624 | — |
Total Assets | 72,425,951 | 106,971,960 | 257,915,258 | 75,832,425 |
Liabilities | ||||
Bank overdrafts | — | — | 165,049 | — |
Payable for capital shares redeemed | 63,624 | 46,260 | 54,384 | 24,827 |
Payable for investments purchased | — | — | — | 445,883 |
Payable to Investment Advisor | 35,274 | 31,884 | 97,139 | 35,046 |
Payable to other affiliates | 9,352 | 30,646 | 85,753 | 9,515 |
Payable to Trustees | 18,786 | 18,786 | 18,786 | 18,786 |
Payable for professional services | 32,221 | 27,892 | 28,713 | 23,769 |
Payable for reports to shareholders | 8,539 | 14,007 | 14,541 | 10,861 |
Payable for transfer agent services | 3,435 | 39,358 | 109,935 | 15,717 |
Other accrued expenses and liabilities | 12,868 | 12,752 | 24,954 | 6,745 |
Total Liabilities | 184,099 | 221,585 | 599,254 | 591,149 |
Net Assets | $72,241,852 | $106,750,375 | $257,316,004 | $75,241,276 |
Net assets consist of: | ||||
Paid-in capital | 46,754,795 | 102,990,936 | 98,510,231 | 35,501,559 |
Distributable earnings (deficit) | 25,487,057 | 3,759,439 | 158,805,773 | 39,739,717 |
Net Assets | $72,241,852 | $106,750,375 | $257,316,004 | $75,241,276 |
Pricing of Class SC Shares | ||||
Net assets applicable to Class SC Shares | $52,471,282 | $65,529,606 | $93,120,584 | $— |
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 3,342,773 | 6,335,246 | 6,892,064 | — |
Net asset value, offering price and redemption price per share | $15.70 | $10.34 | $13.51 | $— |
Pricing of Class I Shares | ||||
Net assets applicable to Class I Shares | $19,770,570 | $41,220,769 | $164,195,420 | $75,241,276 |
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) | 1,259,375 | 3,978,130 | 12,112,119 | 3,934,075 |
Net asset value, offering price and redemption price per share | $15.70 | $10.36 | $13.56 | $19.13 |
†Cost of foreign currency: | $— | $— | $1,080 | $— |
Touchstone Balanced Fund | Touchstone Bond Fund | Touchstone Common Stock Fund | Touchstone Small Company Fund | |
Investment Income | ||||
Dividends | $438,269 | $194,232 | $2,717,537 | $585,363 |
Interest | 286,345 | 2,209,795 | — | — |
Income from securities loaned | 291 | 940 | 1,780 | 104 |
Total Investment Income | 724,905 | 2,404,967 | 2,719,317 | 585,467 |
Expenses | ||||
Investment advisory fees | 315,032 | 424,262 | 1,240,528 | 381,613 |
Administration fees | 74,229 | 138,839 | 331,602 | 99,953 |
Compliance fees and expenses | 3,038 | 3,038 | 3,038 | 3,038 |
Custody fees | 37,271 | 51,712 | 24,194 | 9,888 |
Professional fees | 37,513 | 28,777 | 29,488 | 24,782 |
Transfer Agent fees, Class SC | 19 | 31,017 | 43,513 | — |
Transfer Agent fees, Class I | 6,393 | 25,857 | 133,834 | 25,977 |
Reports to Shareholders, Class SC | 6,017 | 8,703 | 9,350 | — |
Reports to Shareholders, Class I | 10,867 | 15,545 | 20,637 | 15,190 |
Shareholder servicing fees, Class SC | 94,026 | 46,044 | 173,932 | — |
Trustee fees | 23,821 | 23,821 | 23,821 | 23,821 |
Other expenses | 23,347 | 32,788 | 25,354 | 17,257 |
Total Expenses | 631,573 | 830,403 | 2,059,291 | 601,519 |
Fees waived and/or reimbursed by the Advisor and/or Affiliates(A) | (175,490) | (38,593) | (44,492) | (21,468) |
Net Expenses | 456,083 | 791,810 | 2,014,799 | 580,051 |
Net Investment Income (Loss) | 268,822 | 1,613,157 | 704,518 | 5,416 |
Realized and Unrealized Gains (Losses) on Investments | ||||
Net realized gains on investments | 13,666,244 | 1,354,275 | 27,739,379 | 17,797,923 |
Net realized gains on futures contracts | — | 173,965 | — | — |
Net realized gains on foreign currency transactions | — | — | 314 | 472 |
Net change in unrealized appreciation (depreciation) on investments(B) | (7,038,457) | (4,403,771) | 32,947,063 | (1,490,854) |
Net change in unrealized appreciation (depreciation) on foreign currency transactions | — | — | (503) | — |
Net Realized and Unrealized Gains (Losses) on Investments | 6,627,787 | (2,875,531) | 60,686,253 | 16,307,541 |
Change in Net Assets Resulting from Operations | $6,896,609 | $(1,262,374) | $61,390,771 | $16,312,957 |
(A) | See Note 4 in Notes to Financial Statements. |
(B) | Change in unrealized appreciation (depreciation) does not include net appreciation of $13,379,210 for the Touchstone Balanced Fund in connection with the Fund's reorganization. See Note 9 in the Notes to Financial Statements. |
Touchstone Balanced Fund | Touchstone Bond Fund | Touchstone Common Stock Fund | ||||
For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | |
From Operations | ||||||
Net investment income | $268,822 | $144,557 | $1,613,157 | $2,436,828 | $704,518 | $1,205,731 |
Net realized gains (losses) on investments, futures contracts and foreign currency transactions | 13,666,244 | 829,246 | 1,528,240 | 2,466,744 | 27,739,693 | 8,742,461 |
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions | (7,038,457) | 2,066,136 | (4,403,771) | 4,279,852 | 32,946,560 | 35,894,956 |
Change in Net Assets from Operations | 6,896,609 | 3,039,939 | (1,262,374) | 9,183,424 | 61,390,771 | 45,843,148 |
Distributions to Shareholders: | ||||||
Distributed earnings, Class SC | (698,791) | — | (1,908,114) | (1,095,780) | (3,301,446) | (2,849,400) |
Distributed earnings, Class I | (262,011) | (853,726) | (1,234,262) | (654,859) | (6,027,690) | (4,937,726) |
Total Distributions | (960,802) | (853,726) | (3,142,376) | (1,750,639) | (9,329,136) | (7,787,126) |
Share Transactions Class SC | ||||||
Proceeds from Shares issued | 604,115 | — | 2,927,604 | 3,519,318 | 823,274 | 592,608 |
Proceeds from Shares issued in connection with reorganization(A) | 53,069,713 | — | — | — | — | — |
Reinvestment of distributions | 698,791 | — | 1,908,114 | 1,095,780 | 3,301,445 | 2,849,400 |
Cost of Shares redeemed | (5,064,608) | — | (2,603,926) | (2,617,540) | (15,003,523) | (14,588,347) |
Change in Net Assets from Class SC Share Transactions | 49,308,011 | — | 2,231,792 | 1,997,558 | (10,878,804) | (11,146,339) |
Share Transactions Class I | ||||||
Proceeds from Shares issued | 1,944,429 | 941,388 | 5,704,864 | 2,996,827 | 1,557,603 | 2,019,265 |
Reinvestment of distributions | 262,011 | 853,726 | 1,234,262 | 654,859 | 6,027,690 | 4,937,726 |
Cost of Shares redeemed | (3,816,913) | (3,001,190) | (3,373,984) | (5,004,840) | (26,020,897) | (21,380,209) |
Change in Net Assets from Class I Share Transactions | (1,610,473) | (1,206,076) | 3,565,142 | (1,353,154) | (18,435,604) | (14,423,218) |
Change in Net Assets from Share Transactions | 47,697,538 | (1,206,076) | 5,796,934 | 644,404 | (29,314,408) | (25,569,557) |
Total Increase (Decrease) in Net Assets | 53,633,345 | 980,137 | 1,392,184 | 8,077,189 | 22,747,227 | 12,486,465 |
Net Assets | ||||||
Beginning of period | 18,608,507 | 17,628,370 | 105,358,191 | 97,281,002 | 234,568,777 | 222,082,312 |
End of period | $72,241,852 | $18,608,507 | $106,750,375 | $105,358,191 | $257,316,004 | $234,568,777 |
Share Transactions Class SC | ||||||
Shares issued | 39,248 | — | 275,701 | 335,573 | 63,243 | 68,312 |
Shares issued in connection with reorganization(A) | 3,588,149 | — | — | — | — | — |
Shares reinvested | 44,724 | — | 184,156 | 101,744 | 246,152 | 264,595 |
Shares redeemed | (329,348) | — | (244,731) | (256,378) | (1,182,940) | (1,536,646) |
Change in Class SC Shares Outstanding | 3,342,773 | — | 215,126 | 180,939 | (873,545) | (1,203,739) |
Share Transactions Class I | ||||||
Shares issued | 129,060 | 75,076 | 537,958 | 286,624 | 121,454 | 211,775 |
Shares reinvested | 16,769 | 63,156 | 119,005 | 60,748 | 447,227 | 457,240 |
Shares redeemed | (255,370) | (243,950) | (317,140) | (484,927) | (2,025,128) | (2,247,613) |
Change in Class I Shares Outstanding | (109,541) | (105,718) | 339,823 | (137,555) | (1,456,447) | (1,578,598) |
Change in Shares Outstanding | 3,233,232 | (105,718) | 554,949 | 43,384 | (2,329,992) | (2,782,337) |
(A) | See Note 9 in Notes to Financial Statements. |
Touchstone Small Company Fund | |
For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 |
$5,416 | $35,655 |
17,798,395 | 394,740 |
(1,490,854) | 10,708,779 |
16,312,957 | 11,139,174 |
— | — |
(1,442,590) | (2,307,257) |
(1,442,590) | (2,307,257) |
— | — |
— | — |
— | — |
— | — |
— | — |
3,080,895 | 3,874,376 |
1,442,590 | 2,307,256 |
(15,784,972) | (8,011,200) |
(11,261,487) | (1,829,568) |
(11,261,487) | (1,829,568) |
3,608,880 | 7,002,349 |
71,632,396 | 64,630,047 |
$75,241,276 | $71,632,396 |
— | — |
— | — |
— | — |
— | — |
— | — |
172,548 | 320,869 |
76,638 | 153,118 |
(874,170) | (635,071) |
(624,984) | (161,084) |
(624,984) | (161,084) |
Touchstone Balanced Fund—Class SC | |
Selected Data for a Share Outstanding Throughout The Period | |
Period Ended December 31, 2021(A) | |
Net asset value at beginning of period | $14.67(B) |
Income (loss) from investment operations: | |
Net investment income | 0.05(C) |
Net realized and unrealized gains on investments | 1.18 |
Total from investment operations | 1.23 |
Distributions from: | |
Net investment income | (0.03) |
Realized capital gains | (0.17) |
Total distributions | (0.20) |
Net asset value at end of period | $15.70 |
Total return(D) | 8.45%(E) |
Ratios and supplemental data: | |
Net assets at end of period (000's) | $52,471 |
Ratio to average net assets: | |
Net expenses | 0.79%(F) |
Gross expenses | 1.13%(F) |
Net investment income | 0.46%(F) |
Portfolio turnover rate | 132%(G) |
Touchstone Balanced Fund—Class I | |||||
Selected Data for a Share Outstanding Throughout Each Period | |||||
Year Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net asset value at beginning of period | $13.59 | $11.95 | $9.86 | $14.85 | $13.02 |
Income (loss) from investment operations: | |||||
Net investment income | 0.07(C) | 0.12(C) | 0.14(C) | 0.18(C) | 0.14 |
Net realized and unrealized gains (losses) on investments | 2.24 | 2.16 | 2.11 | (0.92) | 1.69 |
Total from investment operations | 2.31 | 2.28 | 2.25 | (0.74) | 1.83 |
Distributions from: | |||||
Net investment income | (0.03) | (0.16) | (0.16) | (0.12) | — |
Realized capital gains | (0.17) | (0.48) | —(H) | (4.13) | — |
Total distributions | (0.20) | (0.64) | (0.16) | (4.25) | — |
Net asset value at end of period | $15.70 | $13.59 | $11.95 | $9.86 | $14.85 |
Total return(D) | 17.07% | 19.16% | 22.80% | (6.07%) | 14.06% |
Ratios and supplemental data: | |||||
Net assets at end of period (000's) | $19,771 | $18,609 | $17,628 | $15,971 | $17,964 |
Ratio to average net assets: | |||||
Net expenses | 0.81% | 0.85% | 0.85% | 0.85% | 0.85% |
Gross expenses | 1.05% | 1.38% | 1.48% | 1.15% | 0.97% |
Net investment income | 0.48% | 0.85% | 1.22% | 1.22% | 1.01% |
Portfolio turnover rate | 132%(G) | 71% | 129% | 140% | 142% |
(A) | Represents the period from commencement of operations (April 13, 2021) through December 31, 2021. |
(B) | Net asset value at the beginning of period is based on the net asset value of Class I shares on April 13, 2021. |
(C) | The net investment income per share was based on average shares outstanding for the period. |
(D) | Total returns do not include any insurance, sales or administrative charges of variable annuity or life insurance contracts. If these charges were included, the returns would be lower. |
(E) | Not annualized. |
(F) | Annualized. |
(G) | Portfolio turnover excludes the purchases and sales of securities of the Aggressive ETF Fund, the Conservative ETF Fund and the Moderate ETF Fund acquired on April 16, 2021 (See Note 9 in the Notes to Financial Statements). If these transactions were included, portfolio turnover would have been higher. |
(H) | Less than $0.005 per share. |
Touchstone Bond Fund—Class SC | |||
Selected Data for a Share Outstanding Throughout Each Period | |||
Year Ended December 31, | Period Ended December 31, 2019(A) | ||
2021 | 2020 | ||
Net asset value at beginning of period | $10.79 | $10.01 | $9.90 |
Income (loss) from investment operations: | |||
Net investment income | 0.16 | 0.24 | 0.11 |
Net realized and unrealized gains (losses) on investments | (0.30) | 0.72 | 0.13 |
Total from investment operations | (0.14) | 0.96 | 0.24 |
Distributions from: | |||
Net investment income | (0.25) | (0.18) | (0.13) |
Realized capital gains | (0.06) | — | — |
Total distributions | (0.31) | (0.18) | (0.13) |
Net asset value at end of period | $10.34 | $10.79 | $10.01 |
Total return(B) | (1.30%) | 9.62% | 2.43%(C) |
Ratios and supplemental data: | |||
Net assets at end of period (000's) | $65,530 | $66,042 | $59,462 |
Ratio to average net assets: | |||
Net expenses | 0.79% | 0.77% | 0.78%(D) |
Gross expenses | 0.79% | 0.77% | 0.84%(D) |
Net investment income | 1.47% | 2.39% | 2.29%(D) |
Portfolio turnover rate | 142% | 168% | 335%(E) |
Touchstone Bond Fund—Class I | |||||
Selected Data for a Share Outstanding Throughout Each Period | |||||
Year Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net asset value at beginning of period | $10.81 | $10.02 | $9.19 | $9.60 | $9.26 |
Income (loss) from investment operations: | |||||
Net investment income | 0.12 | 0.28 | 0.33 | 0.28 | 0.18 |
Net realized and unrealized gains (losses) on investments | (0.25) | 0.69 | 0.63 | (0.46) | 0.16 |
Total from investment operations | (0.13) | 0.97 | 0.96 | (0.18) | 0.34 |
Distributions from: | |||||
Net investment income | (0.26) | (0.18) | (0.13) | (0.23) | — |
Realized capital gains | (0.06) | — | — | — | — |
Total distributions | (0.32) | (0.18) | (0.13) | (0.23) | — |
Net asset value at end of period | $10.36 | $10.81 | $10.02 | $9.19 | $9.60 |
Total return(B) | (1.21%) | 9.71% | 10.46% | (1.88%) | 3.67% |
Ratios and supplemental data: | |||||
Net assets at end of period (000's) | $41,221 | $39,316 | $37,819 | $41,808 | $46,922 |
Ratio to average net assets: | |||||
Net expenses | 0.67% | 0.67% | 0.67% | 0.67% | 0.68% |
Gross expenses | 0.77% | 0.82% | 0.94% | 0.87% | 0.71% |
Net investment income | 1.60% | 2.49% | 2.58% | 2.62% | 1.83% |
Portfolio turnover rate | 142% | 168% | 335%(E) | 431% | 168% |
(A) | Represents the period from commencement of operations (July 12, 2019) through December 31, 2019. |
(B) | Total returns do not include any insurance, sales or administrative charges of variable annuity or life insurance contracts. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Active Bond Fund acquired on July 12, 2019. If these transactions were included, portfolio turnover would have been higher. |
Touchstone Common Stock Fund—Class SC | |||
Selected Data for a Share Outstanding Throughout Each Period | |||
Year Ended December 31, | Period Ended December 31, 2019(A) | ||
2021 | 2020 | ||
Net asset value at beginning of period | $10.98 | $9.20 | $8.61 |
Income (loss) from investment operations: | |||
Net investment income | 0.01 | 0.04 | 0.02 |
Net realized and unrealized gains on investments | 3.01 | 2.11 | 0.72 |
Total from investment operations | 3.02 | 2.15 | 0.74 |
Distributions from: | |||
Net investment income | (0.05) | (0.06) | (0.05) |
Realized capital gains | (0.44) | (0.31) | (0.10) |
Total distributions | (0.49) | (0.37) | (0.15) |
Net asset value at end of period | $13.51 | $10.98 | $9.20 |
Total return(B) | 27.57% | 23.48% | 8.60%(C) |
Ratios and supplemental data: | |||
Net assets at end of period (000's) | $93,121 | $85,232 | $82,546 |
Ratio to average net assets: | |||
Net expenses | 0.91% | 0.90% | 0.94%(D) |
Gross expenses | 0.91% | 0.90% | 0.94%(D) |
Net investment income | 0.16% | 0.47% | 0.46%(D) |
Portfolio turnover rate | 6% | 15% | 18%(E) |
Touchstone Common Stock Fund—Class I | |||||
Selected Data for a Share Outstanding Throughout Each Period | |||||
Year Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net asset value at beginning of period | $11.01 | $9.21 | $7.28 | $18.74 | $15.52 |
Income (loss) from investment operations: | |||||
Net investment income | 0.06 | 0.07 | 0.08 | 0.14(F) | 0.22 |
Net realized and unrealized gains (losses) on investments | 3.00 | 2.10 | 2.00 | (1.00) | 3.11 |
Total from investment operations | 3.06 | 2.17 | 2.08 | (0.86) | 3.33 |
Distributions from: | |||||
Net investment income | (0.07) | (0.06) | (0.05) | (0.11) | (—)(G) |
Realized capital gains | (0.44) | (0.31) | (0.10) | (10.49) | (0.11) |
Total distributions | (0.51) | (0.37) | (0.15) | (10.60) | (0.11) |
Net asset value at end of period | $13.56 | $11.01 | $9.21 | $7.28 | $18.74 |
Total return(B) | 27.85% | 23.68% | 28.58% | (8.05%) | 21.50% |
Ratios and supplemental data: | |||||
Net assets at end of period (000's) | $164,195 | $149,336 | $139,536 | $124,796 | $158,438 |
Ratio to average net assets: | |||||
Net expenses | 0.73% | 0.73% | 0.73% | 0.73% | 0.71% |
Gross expenses | 0.76% | 0.80% | 0.82% | 0.83% | 0.71% |
Net investment income | 0.34% | 0.64% | 0.82% | 0.77% | 1.21% |
Portfolio turnover rate | 6% | 15% | 18%(E) | 10% | 84% |
(A) | Represents the period from commencement of operations (July 12, 2019) through December 31, 2019. |
(B) | Total returns do not include any insurance, sales or administrative charges of variable annuity or life insurance contracts. If these charges were included, the returns would be lower. |
(C) | Not annualized. |
(D) | Annualized. |
(E) | Portfolio turnover excludes the purchases and sales of securities of the Touchstone Focused Fund and the Touchstone Large Cap Core Equity Fund acquired on July 12, 2019. If these transactions were included, portfolio turnover would have been higher. |
(F) | The net investment income per share was based on average shares outstanding for the period. |
(G) | Less than $0.005 per share. |
Touchstone Small Company Fund—Class I | |||||
Selected Data for a Share Outstanding Throughout Each Period | |||||
Year Ended December 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net asset value at beginning of period | $15.71 | $13.69 | $12.69 | $15.73 | $13.58 |
Income (loss) from investment operations: | |||||
Net investment income (loss) | —(A)(B) | 0.01 | 0.02 | 0.01 | (0.01) |
Net realized and unrealized gains (losses) on investments | 3.79 | 2.53 | 2.64 | (1.11) | 2.57 |
Total from investment operations | 3.79 | 2.54 | 2.66 | (1.10) | 2.56 |
Distributions from: | |||||
Net investment income | (0.01) | (0.02) | —(A) | — | (0.01) |
Realized capital gains | (0.36) | (0.50) | (1.66) | (1.94) | (0.40) |
Total distributions | (0.37) | (0.52) | (1.66) | (1.94) | (0.41) |
Net asset value at end of period | $19.13 | $15.71 | $13.69 | $12.69 | $15.73 |
Total return(C) | 24.18% | 18.70% | 21.40% | (7.98%) | 19.12% |
Ratios and supplemental data: | |||||
Net assets at end of period (000's) | $75,241 | $71,632 | $64,630 | $57,884 | $70,339 |
Ratio to average net assets: | |||||
Net expenses | 0.76% | 0.76% | 0.76% | 0.76% | 0.76% |
Gross expenses | 0.79% | 0.87% | 0.85% | 0.84% | 0.76% |
Net investment income (loss) | 0.01% | 0.06% | 0.13% | 0.05% | (0.06%) |
Portfolio turnover rate | 67% | 95% | 85% | 68% | 68% |
(A) | Less than $0.005 per share. |
(B) | The net investment income (loss) per share was based on average shares outstanding for the period. |
(C) | Total returns do not include any insurance, sales or administrative charges of variable annuity or life insurance contracts. If these charges were included, the returns would be lower. |
Touchstone Balanced Fund ("Balanced Fund”) |
Touchstone Bond Fund ("Bond Fund”) |
Touchstone Common Stock Fund ("Common Stock Fund”) |
Touchstone Small Company Fund ("Small Company Fund”) |
(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. |
Fund | Derivatives not accounted for as hedging instruments under ASC 815 | Realized Gains (Losses) on Derivatives | Change in Unrealized Appreciation (Depreciation) on Derivatives |
Bond Fund | Futures - Interest Rate Contracts* | $173,965 | $— |
* | Statements of Operations Location: Net realized gains on futures contracts. |
Bond Fund | |
Interest Rate Contracts: | |
Futures Contracts - Notional Value | $2,958,240 |
Balanced Fund | Bond Fund | Common Stock Fund | Small Company Fund | |
Purchases of investment securities | $46,757,355 | $23,637,830 | $14,698,433 | $50,101,779 |
Proceeds from sales and maturities | $60,106,477 | $39,187,423 | $57,297,268 | $62,927,351 |
Balanced Fund | 0.55% on all assets |
Bond Fund | 0.40% on the first $300 million 0.35% on such assets over $300 million |
Common Stock Fund Small Company Fund | 0.50% on the first $200 million 0.45% on the next $300 million 0.40% on such assets over $500 million |
Class SC | Class I | Termination Date | |
Balanced Fund* | 0.79% | 0.79% | April 29, 2022 |
Bond Fund | 0.97% | 0.67% | April 29, 2022 |
Common Stock Fund | 1.06% | 0.73% | April 29, 2022 |
Small Company Fund | — | 0.76% | April 29, 2022 |
* | Prior to April 13, 2021, the expense limitation for Class I shares was 0.85%. |
Fund | Investment Advisory Fees Waived | Administration Fees Waived | Shareholder Servicing Fees and Operating Expenses Reimbursed/ Waived | Total |
Balanced Fund | $— | $52,363 | $123,127 | $175,490 |
Bond Fund | — | — | 38,593 | 38,593 |
Common Stock Fund | — | — | 44,492 | 44,492 |
Small Company Fund | — | — | 21,468 | 21,468 |
Fund | Expires on or before December 31, 2022 | Expires on or before December 31, 2023 | Expires on or before December 31, 2024 | Total |
Balanced Fund | $108,321 | $90,621 | $175,490 | $374,432 |
Bond Fund | 125,065 | 56,535 | 38,593 | 220,193 |
Common Stock Fund | 124,593 | 90,446 | 44,492 | 259,531 |
Small Company Fund | 55,878 | 64,631 | 21,468 | 141,977 |
Fund | Daily Average Amount Borrowed | Weighted Average Interest Rate | Interest Expense* |
Balanced Fund | $ 59,031 | 0.67% | $ 401 |
* | Included in Other expenses in the Statements of Operations. |
Balanced Fund | Bond Fund | |||
Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |
From ordinary income | $311,042 | $363,954 | $3,142,376 | $1,750,639 |
From long-term capital gains | 649,760 | 489,772 | — | — |
Total distributions | $960,802 | $853,726 | $3,142,376 | $1,750,639 |
Common Stock Fund | Small Company Fund | |||
Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |
From ordinary income | $1,512,930 | $1,270,647 | $52,041 | $90,022 |
From long-term capital gains | 7,816,206 | 6,516,479 | 1,390,549 | 2,217,235 |
Total distributions | $9,329,136 | $7,787,126 | $1,442,590 | $2,307,257 |
Balanced Fund | Bond Fund | Common Stock Fund | Small Company Fund | |
Tax cost of portfolio investments | $60,720,148 | $104,354,507 | $122,700,628 | $53,290,193 |
Gross unrealized appreciation on investments | 12,201,564 | 3,009,024 | 134,288,574 | 24,593,383 |
Gross unrealized depreciation on investments | (617,576) | (881,539) | (3,455,913) | (2,197,362) |
Net unrealized appreciation (depreciation) on investments | 11,583,988 | 2,127,485 | 130,832,661 | 22,396,021 |
Gross unrealized appreciation on foreign currency transactions | — | — | 43 | — |
Net unrealized appreciation (depreciation) on foreign currency transactions | — | — | 43 | — |
Capital loss carryforwards | — | (855,751) | — | — |
Undistributed ordinary income | 2,671,109 | 2,080,065 | 1,076,512 | 5,950,388 |
Undistributed capital gains | 11,231,960 | 415,083 | 26,896,557 | 11,393,308 |
Other temporary differences | — | (7,443) | — | — |
Accumulated earnings (deficit) | $25,487,057 | $3,759,439 | $158,805,773 | $39,739,717 |
Fund | No Expiration Short Term | No Expiration Long Term | Total |
Bond Fund | $ — | $ 855,751 | $ 855,751 |
Fund | Utilized |
Bond Fund | $ 826,782 |
Fund | Paid-In Capital | Distributable Earnings |
Balanced Fund | $ 50,181 | $ (50,181) |
Before Reorganization | After Reorganization | ||||
Touchstone Aggressive ETF Fund | Touchstone Conservative ETF Fund | Touchstone Moderate ETF Fund | Touchstone Balanced Fund | Touchstone Balanced Fund | |
Class SC | |||||
Shares | 1,487,076(A) | 880,971(B) | 1,220,102(C) | 170 | 3,588,319 |
Net Assets | $21,994,268 | $13,029,832 | $18,045,613 | $2,521 | $53,072,234 |
Net Assets Value | $14.79(A) | $14.79(B) | $14.79(C) | $14.79 | $14.79 |
Class I | |||||
Shares | — | — | — | 1,317,216 | 1,317,216 |
Net Assets | $— | $— | $— | $19,481,966 | $19,481,966 |
Net Asset Value | $— | $— | $— | $14.79 | $14.79 |
Fund Total | |||||
Shares Outstanding | 1,487,076 | 880,971 | 1,220,102 | 1,317,386 | 4,905,535 |
Net Assets | $21,994,268 | $13,029,832 | $18,045,613 | $19,484,487 | $72,554,200 |
Unrealized Appreciation (Depreciation) | $6,458,478 | $2,668,289 | $4,252,443 | $6,703,226 | $20,082,436 |
(A) | Reflects a 1.2829:1 stock split which occurred on the date of the reorganization, April 16, 2021. |
(B) | Reflects a 0.8118:1 stock split which occurred on the date of the reorganization, April 16, 2021. |
(C) | Reflects a 0.8538:1 stock split which occurred on the date of the reorganization, April 16, 2021. |
Net investment income | $325,299 |
Net realized and unrealized gain(loss) on investments | $9,794,515 |
Net increase in net assets resulting from operations | $10,119,814 |
Balanced Fund | 100.00 % |
Common Stock Fund | 100.00 % |
Small Company Fund | 100.00 % |
Balanced Fund | $ 11,231,980 |
Bond Fund | $ 415,083 |
Common Stock Fund | $ 26,896,644 |
Small Company Fund | $ 11,393,309 |
Net Expense Ratio Annualized December 31, 2021 | Beginning Account Value July 1, 2021 | Ending Account Value December 31, 2021 | Expenses Paid During the Six Months Ended December 31, 2021* | ||
Balanced Fund | |||||
Class SC | Actual | 0.79% | $1,000.00 | $1,050.90 | $4.08 |
Class SC | Hypothetical | 0.79% | $1,000.00 | $1,021.22 | $4.02 |
Class I | Actual | 0.81% | $1,000.00 | $1,050.90 | $4.19 |
Class I | Hypothetical | 0.81% | $1,000.00 | $1,021.12 | $4.13 |
Bond Fund | |||||
Class SC | Actual | 0.83% | $1,000.00 | $999.00 | $4.18 |
Class SC | Hypothetical | 0.83% | $1,000.00 | $1,021.02 | $4.23 |
Class I | Actual | 0.67% | $1,000.00 | $1,000.00 | $3.38 |
Class I | Hypothetical | 0.67% | $1,000.00 | $1,021.83 | $3.41 |
Common Stock Fund | |||||
Class SC | Actual | 0.94% | $1,000.00 | $1,078.30 | $4.92 |
Class SC | Hypothetical | 0.94% | $1,000.00 | $1,020.47 | $4.79 |
Class I | Actual | 0.73% | $1,000.00 | $1,080.30 | $3.83 |
Class I | Hypothetical | 0.73% | $1,000.00 | $1,021.53 | $3.72 |
Small Company Fund | |||||
Class I | Actual | 0.76% | $1,000.00 | $1,241.80 | $4.29 |
Class I | Hypothetical | 0.76% | $1,000.00 | $1,021.37 | $3.87 |
* | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
Interested Trustees1: | |||||
Name Address Year of Birth | Position Held with Trust | Term of Office And Length of Time Served2 | Principal Occupation(s) During Past 5 Years | Number of Funds Overseen in the Touchstone Fund Complex3 | Other Directorships Held During Past 5 Years4 |
Jill T. McGruder Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1955 | Trustee | Until retirement at age 75 or until she resigns or is removed Trustee since 1999 | President of Touchstone Funds from 1999 to 2020; Director and CEO of IFS Financial Services, Inc. (a holding company) since 1999; and Senior Vice President and Chief Marketing Officer of Western & Southern Financial Group, Inc. (a financial services company) since 2016. | 36 | Director, Integrity Life Insurance Co. and National Integrity Life Insurance Co. since 2005; Director, Touchstone Securities (the Distributor) since 1999; Director, Touchstone Advisors (the Advisor) since 1999; Director, W&S Brokerage Services, Inc. since 1999; Director, W&S Financial Group Distributors, Inc. since 1999; Director, Insurance Profillment Solutions LLC since 2014; Director, Columbus Life Insurance Co. since 2016; Director, The Lafayette Life Insurance Co. since 2016; Director, Gerber Life Insurance Company since 2019; Director, Western & Southern Agency, Inc. since 2018; and Director, LL Global, Inc. (not-for-profit trade organization with operating divisions LIMRA and LOMA) since 2016. |
E. Blake Moore, Jr. Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1958 | President and Trustee | Until retirement at age 75 or until he resigns or is removed Trustee since 2021 | President, Touchstone Funds since 2021; Chief Executive Officer of Touchstone Advisors, Inc. and Touchstone Securities, Inc. since 2020; President, Foresters Investment Management Company, Inc. from 2018 to 2020; President, North American Asset Management at Foresters Financial from 2018 to 2020; Managing Director, Head of Americas at UBS Asset Management from 2015 to 2017; and Executive Vice President, Head of Distribution at Mackenzie Investments from 2011 to 2014. | 36 | Trustee, College of Wooster since 2008; and Director, UBS Funds from 2015 to 2017. |
Independent Trustees: | |||||
Karen Carnahan c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1954 | Trustee | Until retirement at age 75 or until she resigns or is removed Trustee since 2019 | Retired; formerly Chief Operating Officer of Shred-it (a business services company) from 2014 to 2015; formerly President & Chief Operating Officer of the document management division of Cintas Corporation (a business services company) from 2008 to 2014. | 36 | Director, Cintas Corporation since 2019; Director, Boys & Girls Club of West Chester/Liberty since 2016; and Board of Advisors, Best Upon Request since 2020. |
William C. Gale c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1952 | Trustee | Until retirement at age 75 or until he resigns or is removed Trustee since 2013 | Retired; formerly Senior Vice President and Chief Financial Officer of Cintas Corporation (a business services company) from 1995 to 2015. | 36 | None. |
Independent Trustees (Continued): | |||||
Name Address Year of Birth | Position Held with Trust | Term of Office And Length of Time Served2 | Principal Occupation(s) During Past 5 Years | Number of Funds Overseen in the Touchstone Fund Complex3 | Other Directorships Held During Past 5 Years4 |
Susan J. Hickenlooper, CFA(5) c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1946 | Trustee | Until retirement at age 75 or until she resigns or is removed Trustee since 2009 | Retired from investment management. | 36 | Trustee, Episcopal Diocese of Southern Ohio from 2014 to 2018. |
Susan M. King c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1963 | Trustee | Until retirement at age 75 or until she resigns or is removed Trustee since 2021 | Formerly, Partner of ID Funds LLC (2020 to 2021); formerly, Senior Vice President, Head of Product and Marketing Strategy of Foresters Financial (2018 to 2020); formerly, Managing Director, Head of Sales Strategy and Marketing, Americas of UBS Asset Management (2015 to 2017); formerly, Director, Allianz Funds, Allianz Funds Multi-Strategy Trust and AllianzGI Institutional Multi-Series Trust (2014 to 2015); and formerly, Director, Alliance Capital Cash Management Offshore Funds (2003 to 2005). | 36 | Trustee, Claremont McKenna College since 2017; Trustee, Israel Cancer Research Fund since 2019; and Board Member of WHAM! (Women's Health Access Matters) since 2021. |
Kevin A. Robie c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1956 | Trustee | Until retirement at age 75 or until he resigns or is removed Trustee since 2013 | Retired; formerly Vice President of Portfolio Management at Soin LLC (private multinational holding company and family office) from 2004 to 2020. | 36 | Director, SaverSystems, Inc. since 2015; Director, Buckeye EcoCare, Inc. from 2013 to 2018; Director, Turner Property Services Group, Inc. since 2017; Trustee, Dayton Region New Market Fund, LLC (private fund) since 2010; and Trustee, Entrepreneurs Center, Inc. (business incubator) since 2006. |
William H. Zimmer III c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1953 | Trustee | Until retirement at age 75 or until he resigns or is removed Trustee since 2019 | Independent Treasury Consultant since 2014. | 36 | Director, Deaconess Associations, Inc. (healthcare) since 2001; Trustee, Huntington Funds (mutual funds) from 2006 to 2015; and Director, National Association of Corporate Treasurers from 2011 to 2015. |
Principal Officers: | |||
Name Address Year of Birth | Position(s) Held with Trust1 | Term of Office And Length of Time Served | Principal Occupation(s) During Past 5 Years |
E. Blake Moore, Jr. Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1958 | President and Trustee | Until resignation, removal or disqualification President since January 2021 | See biography above. |
Timothy D. Paulin Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1963 | Vice President | Until resignation, removal or disqualification Vice President since 2010 | Senior Vice President of Investment Research and Product Management of Touchstone Advisors, Inc. |
Timothy S. Stearns Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1963 | Chief Compliance Officer | Until resignation, removal or disqualification Chief Compliance Officer since 2013 | Chief Compliance Officer of Touchstone Advisors, Inc. |
Terrie A. Wiedenheft Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1962 | Controller and Treasurer | Until resignation, removal or disqualification Controller and Treasurer since 2006 | Senior Vice President, Chief Financial Officer and Chief Operations Officer, of IFS Financial Services, Inc. (a holding company) and Senior Vice President and Chief Administration Officer within the Office of the Chief Marketing Officer of Western & Southern Financial Group (2021 to Present). |
Meredyth A. Whitford-Schultz Western & Southern Financial Group 400 Broadway Cincinnati, Ohio 45202 Year of Birth: 1981 | Secretary | Until resignation, removal or disqualification Secretary since 2018 | Senior Counsel - Securities/Mutual Funds of Western & Southern Financial Group (2015 to present); Associate at Morgan Lewis & Bockius LLP (law firm) (2014 to 2015); Associate at Bingham McCutchen LLP (law firm) (2008 to 2014). |
(b) | Not applicable. |
Item 2. Code of Ethics.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
(e) | Not applicable. |
(f) | A copy of the code of ethics is attached hereto as Exhibit 13(a)(1). |
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that the registrant has at least one audit committee financial expert serving on its audit committee. Ms. Karen Carnahan is the registrant’s audit committee financial expert and is an independent trustee within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”).
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | Audit fees for Touchstone Variable Series Trust totaled $77,400 and $124,900 for the fiscal years ending December 31, 2021 and December 31, 2020, respectively, including fees associated with the annual audits and filings of Form N-1A and Form N-CEN. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $6,000 and $0 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively. The fees for 2021 are associated with merger related audit procedures. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $26,410 and $29,910 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively. The fees relate to the preparation of federal income and excise tax returns and review of capital gains distribution calculations. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $2,550 and $2,986 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively. The fees relate to the PFIC analyzer and Global Withholding Tax Reporter subscriptions. |
(e)(1) | Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
The Audit Committee’s pre-approval policies describe the types of audit, audit-related, tax and other services that have the general pre-approval of the Audit Committee. The pre-approval policies provide that annual audit service fees, tax services not specifically granted pre-approval, services exceeding pre-approved cost levels and other services that have not received general pre-approval will be subject to specific pre-approval by the Audit Committee. The pre-approval policies further provide that the Committee may grant general pre-approval to other audit services (statutory audits and services associated with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings), audit-related services (accounting consultations related to accounting, financial reporting or disclosure matters not classified as “audit services,” assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities, agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters and assistance with internal control reporting requirements under Form N-CSR), tax services that have historically been provided by the auditor that the Committee believes would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence and permissible non-audit services classified as “all other services” that are routine and recurring services.
(e)(2) | All of the services described in paragraphs (b) through (d) of Item 4 were approved by the Audit Committee. |
(f) | The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. |
(g) | The aggregate non-audit fees for Touchstone Variable Series Trust and certain entities*, totaled approximately $528,481 and $766,767 for the fiscal years ended December 31, 2021 and December 31, 2020, respectively. |
* These include the advisors (excluding non-affiliated sub-advisors) and any entity controlling, controlled by or under common control with the advisors that provides ongoing services to the registrant (Funds).
(h) | The registrant's audit committee of the board of trustees has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. |
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(a) of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Code of ethics, and any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
(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)(2)(1) | Not applicable. |
(a)(2)(2) | 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 Variable Serires Trust
By (Signature and Title)* | /s/ E. Blake Moore, Jr. | |
E. Blake Moore, Jr., President | ||
(principal executive officer) |
Date | March 1, 2022 |
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/ E. Blake Moore, Jr. | |
E. Blake Moore, Jr., President | ||
(principal executive officer) |
Date | March 1, 2022 |
By (Signature and Title)* | /s/ Terrie A. Wiedenheft | |
Terrie A. Wiedenheft, Controller and Treasurer | ||
(principal financial officer) |
Date | March 1, 2022 |
* Print the name and title of each signing officer under his or her signature.