Touchstone Variable Series Trust NCSR Certified annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-08416

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)

Jill T. McGruder

303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203

(Name and address of agent for service)

Registrant's telephone number, including area code:800-638-8194

Date of fiscal year end:December 31

Date of reporting period:December 31, 2018

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.

The Report to Shareholders is attached herewith.

December 31, 2018

Annual Report

Touchstone Variable Series Trust

Touchstone Active Bond Fund

Touchstone Balanced Fund

Touchstone Bond Fund

Touchstone Common Stock Fund

Touchstone Focused Fund

Touchstone Large Cap Core Equity Fund

Touchstone Small Company Fund

Touchstone Aggressive ETF Fund

Touchstone Conservative ETF Fund

Touchstone Moderate ETF Fund

IMPORTANT NOTE: Effective January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, you may not be receiving paper copies of a Fund’s annual or semi-annual shareholder reports by mail, unless you specifically request paper copies of the reports from the insurance company that offers your variable annuity or variable life insurance contract or from your financial intermediary. Instead of delivering paper copies of the report, the insurance company may choose to make the reports available on a website, and the insurance company will notify you by mail each time a shareholder report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.

You may elect to receive all future Fund shareholder reports in paper free of charge from the insurance company. You can inform the insurance company that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company. Your election to receive reports in paper will apply to all portfolio companies available under your contract with the insurance company.

Table of Contents

	Page
Letter from the President	3
Management's Discussion of Fund Performance (Unaudited)	4 - 29
Tabular Presentation of Portfolios of Investments (Unaudited)	30 - 32
Portfolio of Investments:
Touchstone Active Bond Fund	33
Touchstone Balanced Fund	39
Touchstone Bond Fund	43
Touchstone Common Stock Fund	48
Touchstone Focused Fund	50
Touchstone Large Cap Core Equity Fund	52
Touchstone Small Company Fund	53
Touchstone Aggressive ETF Fund	55
Touchstone Conservative ETF Fund	56
Touchstone Moderate ETF Fund	57
Statements of Assets and Liabilities	58 - 59
Statements of Operations	60 - 61
Statements of Changes in Net Assets	62 - 65
Financial Highlights	66 - 70
Notes to Financial Statements	71 - 85
Report of Independent Registered Public Accounting Firm	86 - 87
Other Items (Unaudited)	88 - 96
Management of the Trust (Unaudited)	97 - 99
Privacy Protection Policy	103

This report identifies the Funds' investments on December 31, 2018. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.

Letter from the President

Dear Shareholder:

We are pleased to provide you with the Touchstone Variable Series Trust Annual Report. Inside you will find key financial information, as well as manager commentaries for the Funds, for the 12 months ended December 31, 2018.

The “synchronized global expansion” that characterized 2017 decoupled in 2018 amid the imposition of tariffs by the U.S. and China, followed by threats of yet more. U.S. economic data was generally strong. Toward year-end, however, some indicators – including home and auto sales and consumer confidence – suggested a slowdown was emerging. Decelerating growth in major economies outside the U.S. became more evident, though none entered recessionary territory. Healthy domestic economic conditions encouraged the U.S. Federal Reserve Board (Fed) to continue normalizing monetary policy with four interest rate increases, yet it also signaled a more patient approach going forward in light of declining inflation expectations. Rising U.S. interest rates, a strong labor market and relatively robust economic conditions attracted global investors to U.S. stocks and bonds and strengthened the U.S. dollar. The Bank of Japan and European Central Bank (ECB) maintained accommodative monetary policies. Hopes of normalizing their respective monetary policies in order to restock their recession-fighting tool-kits faded after mid-year amid weaker growth. The ECB did however fulfill its promise to end its quantitative easing program.

Global macroeconomic concerns led to declines across all broad U.S. and non-U.S. equity indexes. In the U.S., growth-oriented stocks led U.S. equity markets over their value-oriented counterparts, while large capitalization stocks outperformed small- and mid-capitalization stocks. Outside the U.S., emerging market and developed market equities posted double-digit declines. Those declines were compounded for domestic investors in non-U.S. equities due to the U.S. dollar’s strengthening versus most major foreign currencies.

Rising interest rates and widening credit spreads buffeted the fixed income market. The Fed’s rate hikes pushed short-term rates higher over the year, outpacing rising rates on longer maturities. The result was a significantly flatter yield curve, reaching its flattest level since 2007. This gave rise to fears throughout the year of a yield curve inversion¹, which historically has been a leading indicator of recessions. While the U.S. Treasury yield curve did not invert, it did finish the year above where it started, creating a headwind for longer maturity bonds. Economic concerns also led to credit spread widening during the year, resulting in negative returns for both investment grade and high yield bonds.

The new year provides a natural point to assess the recent past and consider the future. From a financial perspective, it has been yet another period of challenged returns across many asset classes. This presents a particularly timely juncture to assess your current financial situation and, with the help of your financial advisor, weigh your plans for the year — as well as for the years ahead.

We greatly value your continued support. Thank you for including Touchstone as part of your investment plan.

Sincerely.

Jill T. McGruder

President

Touchstone Variable Series Trust

¹A yield curve inversion is defined as when the yield on a 2-year Treasury Bill exceeds the yield on a 10-year Treasury Bond.

Management's Discussion of Fund Performance(Unaudited)

Touchstone Active Bond Fund

Sub-Advised by Fort Washington Investment Advisors, Inc.

Investment Philosophy

The Touchstone Active Bond Fund seeks to provide as high a level of current income as is consistent with the preservation of capital. Capital appreciation is a secondary goal. In deciding what securities to buy and sell for the Fund, the overall investment opportunities and risks in different sectors of the debt securities market are analyzed by focusing on maximizing total return and reducing volatility of the Fund’s portfolio. A disciplined sector allocation process is followed in order to build a broadly diversified portfolio of bonds.

Fund Performance

The Touchstone Active Bond Fund underperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -1.62 percent, while the total return of the benchmark was 0.01 percent.

Market Environment

Risk assets continued their brisk pace higher to start 2018 following a strong 2017. However, volatility returned which reflected concerns about inflation and rising interest rates, as well as uncertainty about global trade.

Market expectations of additional Fed rate hikes decreased during the fourth quarter, as broad financial conditions reached their tightest levels of the year. Driving these financial conditions were the increased federal funds rate, a stronger U.S. dollar, widening credit spreads and the sharp retreat in equities. Global central bank policies were also less accommodative.

While underlying growth of the U.S. economy began to show signs of further deceleration toward the end of the year, it still remained near trend at approximately 2.0 to 2.5 percent. The strength of the economy was buoyed by the resiliency of labor markets and, as effects from fiscal policy and tax legislation began to fade, it was the most important factor for sustaining the current growth rate. During the period, labor markets were consistently strong in terms of jobs added month to month. Wage growth was also strong and began to show signs of acceleration. Core inflation readings were in line with the Fed’s 2 percent target and were expected to hover around 2 percent in the near term as data indicated solid, but not accelerating inflation.

Within the index, Investment Grade Corporate Bonds, Mortgage-Backed Securities (MBS), Asset-Backed Securities (ABS) and Commercial Mortgage-Backed Securities (CMBS) all underperformed U.S. Treasuries during the period. High Yield bonds also underperformed for the year.

Portfolio Review

The main detractors from Fund performance during the 12-month period were an overweight to Investment Grade bonds and interest rate management, specifically duration positioning and an allocation to Treasury Inflation Protected Securities (TIPS). The Fund’s allocation to U.S. dollar-denominated Emerging Markets bonds also detracted over the period, while security selection was strong within Securitized Assets, particularly ABS. This helped offset some of the losses incurred from the Fund’s allocation to Emerging Markets. The Fund

Management's Discussion of Fund Performance(Unaudited) (Continued)

maintained a modest allocation to U.S. dollar-denominated Emerging Markets bonds during the period as the additional yield relative to Investment Grade Corporate and High Yield bonds remained attractive.

Outlook

We believe global central banks need to maintain accommodative policies in order to support ongoing expansion abroad. Rate hikes by the Fed will further tighten financial conditions, which may negatively impact the Fund’s overweight position to risk assets. Further escalation of trade disputes, specifically between the U.S. and China, may also adversely impact risk assets.

We believe current interest rates fully reflect the uncertainty surrounding the economic outlook which has seemed to embrace growth deceleration and a less active Federal Open Market Committee. There is little downside for rates at these levels unless actual economic weakness materializes. As a result, in the near term, the Fund is positioned with a neutral duration and curve relative to the benchmark. We also expect the Fund to hold a modest allocation to U.S. dollar-denominated Emerging Markets bonds because of their additional yield relative to Investment Grade and High Yield bonds.

Management's Discussion of Fund Performance(Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Active Bond Fund and the Bloomberg Barclays U.S. Aggregate Bond Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was January 1, 1999.

Note to Chart

The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index comprised of U.S. investment grade, fixed rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and ten years.

Management's Discussion of Fund Performance(Unaudited)

Touchstone Balanced Fund

Sub-Advised by Fort Washington Investment Advisors, Inc.

Investment Philosophy

The Touchstone Balanced Fund seeks to achieve its investment goal of providing investors with capital appreciation and current income by generally investing in a diversified portfolio comprising 60 percent equity securities and 40 percent fixed-income securities. With respect to equities, the Fund invests primarily in issuers having a market capitalization, at the time of purchase, above $5 billion. Equity securities include common stock and preferred stock. With respect to fixed-income, the Fund invests primarily in bonds, including mortgage-related securities, asset-backed securities, government securities (both U.S. government securities and foreign sovereign debt), and corporate debt securities.

Fund Performance

The Touchstone Balanced Fund underperformed both of its benchmarks, the S&P 500^® Index and the Bloomberg Barclays U.S. Aggregate Bond Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -6.07 percent while the total return of the S&P 500^® Index was -4.38 percent and the total return of the Bloomberg Barclays U.S. Aggregate Bond Index was 0.01 percent.

Market Environment

During the year, the U.S. Federal Reserve Board (Fed) increased the federal funds rate a total of four times. Interest rates were driven by concerns about future growth in the U.S., slowing growth outside of the U.S. and continued uncertainty related to trade policies. The effects of the Fed’s rate increases, combined with the sharp decline in long-term rates led to further flattening of the curve and an inversion in certain parts of the curve, mainly in short-term maturities. Market expectations of additional Fed rate hikes decreased during the fourth quarter, as broad financial conditions reached their tightest levels of the year. Driving these financial conditions were the increased federal funds rate, a stronger U.S. dollar, widening credit spreads and the sharp retreat in equities. Global central bank policies were also less accommodative.

The major theme surrounding U.S. equities was the return of volatility. For the year, sectors that outperformed the equity benchmark the most included Health Care, Utilities and Information Technology. Energy, Materials and Industrials were the main detractors.

Within fixed income, Investment Grade Corporate bonds, Mortgage-Backed Securities (MBS), Asset-Backed Securities (ABS) and Commercial Mortgage-Backed Securities (CMBS) all underperformed U.S. Treasuries during the period. High Yield bonds also underperformed for the year.

Management's Discussion of Fund Performance(Unaudited) (Continued)

Portfolio Review

Within the equity allocation, stock selection in the Health Care, Industrials and Energy sectors were the largest relative underperformers. Stock selection within the Financials and Information Technology sectors contributed to performance. Sector allocation contributed to relative performance, primarily due to an overweight to the Consumer Discretionary sector and an underweight to the Energy sector.

The primary detractors within the fixed income allocation were an overweight to Investment Grade bonds and interest rate management, specifically duration positioning and an allocation to Treasury Inflation Protected Securities (TIPS). The Fund’s allocation to U.S. dollar-denominated Emerging Markets bonds also detracted over the period, while security selection was strong within Securitized Assets, particularly ABS. This helped offset some of the losses incurred from the Fund’s allocation to Emerging Markets. The Fund’s cash position had a positive impact on performance given the negative moves in the market.

There were no significant changes made to the Fund’s allocation for the year as the Fund maintained a slight overweight to Equities versus Fixed Income. Within Fixed Income, the overall allocation continued to have a modest overweight to risk with the largest overweight position to Investment Grade Credit. The Fund also maintained a modest allocation to U.S. dollar-denominated Emerging Markets debt.

Outlook

Looking ahead, we believe risk assets offer the greatest potential to the Fund, driven by U.S. economic growth, steady inflation, amicable resolutions to trade disputes, and accommodative central bank policies both domestically and abroad. Due to tightening financial conditions, increased market volatility and increases in the federal funds rate, we believe current market conditions could become headwinds to the Fund in 2019. Valuations have adjusted to tighter borrowing costs, the slowdown in global growth and the uncertainty around trade issues. As a result, we believe the potential upside for price appreciation is limited. Within equities, we have taken advantage of opportunities to position the Fund for the later stages of the market cycle. The Fund continues to be skewed toward larger cap, “franchise value” businesses with higher barriers to entry. We also expect to emphasize businesses with lower financial leverage and pricing power to help offset wage inflation. In the Fund’s fixed income holdings, we have taken advantage of opportunities among securitized assets when possible, where we believe attractive risk-reward profiles can be found in the ABS and Non-Agency MBS sectors. We like these sectors’ close connections to consumer spending, which continues to be healthy.

We believe current rates fully reflect the uncertainty surrounding the economic outlook which has seemed to embrace growth deceleration and a less active Federal Open Market Committee. There is little downside for rates at these levels unless actual economic weakness materializes. As a result, in the near term, the Fund is positioned with a neutral duration and curve relative to the benchmark. We also expect to hold a modest allocation to U.S. dollar-denominated Emerging Markets bonds because of their additional yield relative to Investment Grade and High Yield bonds.

Management's Discussion of Fund Performance(Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the
Touchstone Balanced Fund, the Bloomberg Barclays U.S. Aggregate Bond Index and the
S&P 500^® Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was August 1, 2003.

Notes to Chart

S&P 500^® Index is a group of 500 widely held stocks and is commonly regarded to be representative of the large capitalization stock universe.

Management's Discussion of Fund Performance(Unaudited)

Touchstone Bond Fund

Sub-Advised by Fort Washington Investment Advisors, Inc.

Investment Philosophy

The Touchstone Bond Fund seeks to provide as high a level of current income as is consistent with the preservation of capital. Capital appreciation is a secondary goal. Under normal circumstances, the Fund invests at least 80 percent of its assets in bonds. Bonds include mortgage-related securities, asset-backed securities, government securities and corporate debt securities. The Fund primarily invests in investment-grade debt securities, but may invest up to 30 percent of the Fund’s total assets in non-investment-grade debt securities.

Fund Performance

The Touchstone Bond Fund underperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -1.88 percent, while the total return of the benchmark was 0.01 percent.

Market Environment

Portfolio Review

The main detractors from Fund performance during the year were an overweight to Investment Grade bonds and interest rate management, specifically duration positioning and an allocation to Treasury Inflation Protected Securities (TIPS). The Fund’s allocation to U.S. dollar-denominated Emerging Markets bonds also detracted over the period, while security selection was strong within Securitized Assets, particularly ABS. This helped offset some of the losses incurred from the Fund’s allocation to Emerging Markets. The Fund maintained a modest allocation to U.S. dollar-denominated Emerging Markets bonds during the period as the additional yield relative to Investment Grade corporate and High Yield bonds remained attractive.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Outlook

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the
Touchstone Bond Fund and the Bloomberg Barclays U.S. Aggregate Bond Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was August 1, 2003.

Note to Chart

Management's Discussion of Fund Performance (Unaudited)

Touchstone Common Stock Fund

Sub-Advised by Fort Washington Investment Advisors, Inc.

Investment Philosophy

The Fund seeks to invest at least 80 percent of its assets in large capitalization equity securities. The Fund’s sub-advisor, Fort Washington Investment Advisors, Inc., seeks to invest in companies that are trading below what is believed to be the estimate of the companies’ intrinsic value and have a sustainable competitive advantage or a high barrier to entry in place. The barrier(s) to entry can be created through a cost advantage, economies of scale, high customer loyalty or a government barrier (e.g. license or subsidy). Fort Washington believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.

Fund Performance

The Touchstone Common Stock Fund underperformed its benchmark, the S&P 500^® Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -8.05 percent while the benchmark’s total return was -4.38 percent.

Market Environment

In 2018, U.S. equities recorded negative returns for the 12-month period as global growth, trade relations between the U.S. and China, and fiscal tightening by the U.S. Federal Reserve Board (Fed) concerned investors.

The major theme surrounding U.S. equities was the return of volatility. Sectors that outperformed the S&P 500^® Index the most during the year included Health Care, Utilities, and Information Technology. Sectors that underperformed the broader index the most included Energy, Materials, and Industrials.

Portfolio Review

Stock selection was the primary cause of relative underperformance. Stock selection within the Materials, Financials, and Information Technology sectors contributed to relative performance. Energy, Health Care, Industrials and Communication Services were among the underperforming sectors.

The Fund’s top contributors to relative performance for the year were Amazon.com, Inc. (Consumer Discretionary sector), Twenty-First Century Fox, Inc. (Communication Services sector), Salesforce.com, Inc. (Information Technology sector), Microsoft Corp. (Information Technology sector), Starbucks Corp. (Consumer Discretionary sector) and Berkshire Hathaway Inc. Class B Shares (Financials sector). Among the stocks that detracted from relative performance were Facebook, Inc. (Communication Services sector), General Electric Co. (Industrials sector), Goldman Sachs Group, Inc. (Financials sector), Stericycle, Inc. (Industrials sector), and JD.com, Inc. (Consumer Discretionary sector).

Outlook and Conclusion

The U.S. stock market recorded a pullback in the fourth quarter that helped produce the first negative year since 2008. Concerns driving the market lower in the fourth quarter included, but were not limited to, lingering trade concerns between the U.S. and China, commentary by the Fed early in the quarter signaling more rate increases and slowing growth in foreign economies. The elevated volatility in the fourth quarter leads to the question of whether this is another transitory market pullback or the end of a bull market. Each of the critical indicators we track signal it is the former. However, there are ongoing items that need to be monitored closely including market and individual company valuations, the state of the global economy, unit labor costs and

Management's Discussion of Fund Performance (Unaudited) (Continued)

market breadth. These are all items we are focused on as the cycle matures. While we do not see signs of a bear market on the immediate horizon, we have taken opportunities to position the Fund for the later stages of the market cycle.

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Common Stock Fund and the S&P 500^® Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was November 30, 2000.

Note to Chart

S&P 500^® Index is a group of 500 widely held stocks and is commonly regarded to be representative of the large capitalization stock universe.

Management's Discussion of Fund Performance (Unaudited)

Touchstone Focused Fund

Sub-Advised by Fort Washington Investment Advisors, Inc.

Investment Philosophy

The Touchstone Focused Fund seeks to invest in companies of all capitalizations that are trading below what is believed to be the estimate of their intrinsic value and have a sustainable competitive advantage or a high barrier to entry in place. The barrier(s) to entry can be created through a cost advantage, economies of scale, high customer loyalty or a government barrier (e.g. license or subsidy). Fort Washington believes that the strongest barrier to entry is the combination of economies of scale and high customer loyalty.

Fund Performance

The Touchstone Focused Fund underperformed its primary benchmark, the Russell 3000^® Index, and its secondary benchmark, the S&P 500^® Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -7.97 percent, while the total return of the Russell 3000^® Index was -5.24 percent and the total return of the S&P 500^® Index was -4.38 percent.

Market Environment

U.S. equities recorded negative returns for the 12-month period as global growth, trade relations between the U.S. and China, and fiscal tightening by the U.S. Federal Reserve Board (Fed) weighed on investors.

The major theme surrounding U.S. equities was the return of volatility. For the year, the sectors that outperformed the Russell 3000^® Index the most included Health Care, Utilities and Information Technology. Energy, Materials and Industrials were the worst performing sectors.

Portfolio Review

The Fund’s stock selection within the Materials, Consumer Discretionary, Information Technology and Financials sectors outperformed relative to the benchmark. Stock selection within Energy, Health Care, Communication Services, and Industrials detracted from relative performance. Sector allocation contributed to relative performance, primarily due to underweights to the Materials, Industrials and Energy sectors. The Fund’s cash position had a positive impact on performance given the negative moves in the market.

Among the individual stocks that contributed to relative performance were Amazon.com,Inc. (Consumer Discretionary sector), Salesforce.com, Inc. (Information Technology sector) and Twenty-First Century Fox, Inc. (Communication Services sector). Amazon.com is an e-commerce retailer and cloud computing software company. The stock rose during the period due to the acceleration of growth in the company’s Amazon Prime subscription service and its Amazon Web Services subsidiary. Salesforce.com, a cloud-based software business, increased primarily due to higher than expected revenue growth and management’s announcement that it raised fiscal year revenue guidance for 2019. Twenty-First Century Fox, a multinational mass media company, moved higher following a proposed acquisition from Walt Disney Co.

Among the individual stocks that detracted from relative performance were Stericycle, Inc. (Industrials sector), JD.com, Inc. (Consumer Discretionary sector) and Goldman Sachs Group Inc. (Financials sector). Stericycle specializes in collecting and disposing of regulated substances - such as medical waste pharmaceuticals - and provides compliance training solutions. The stock underperformed primarily due to weak performance by the company’s core regulated medical waste business as well as softer than expected revenues in its communications solutions business. JD.com, a China-based e-commerce business, moved lower due to concerns about growth and the company’s ongoing investments that have negatively impacted margins. Further, the news cycle surrounding criminal allegations against the company’s CEO also weighed on its stock price.

Management's Discussion of Fund Performance (Unaudited) (Continued)

From a market cap perspective, the Fund maintained underweight positions in small-cap companies - with market caps below $2 billion - and mid-cap companies. The Fund continued to maintain an overweight to large-cap businesses, which includes companies with market caps above $10 billion. The Fund’s market cap allocation contributed to performance as large-cap stocks outperformed the benchmark during the period.

During the period, the Fund initiated positions in Monster Beverage Corp. (Consumer Staples sector), AmerisourceBergen Corp. (Health Care sector), Baidu, Inc. (Communication Services sector), JD.com Inc., Alibaba Group Holding Ltd. (both from the Consumer Discretionary sector), Deere & Co., Inc. and FedEx Corp. (both from the Industrials sector). The Fund exited positions in Mondelez International, Inc. (Consumer Discretionary sector), Bank OZK (Financials sector), Johnson Controls International PLC (Industrials sector), Cisco Systems, Inc. (Information Technology sector) and Nutrien Ltd. (Materials sector).

At the end of the year, the Fund was overweight to the Communication Services, Financials, Consumer Discretionary and Real Estate sectors, and underweight to the Consumer Staples, Energy and Industrials sectors. Allocations to the Health Care and Information Technology sectors were generally matched to that of the benchmark. The Fund did not hold any stocks within the Utilities or Materials sectors at the end of the period.

Outlook

The U.S. stock market recorded a significant pullback in the fourth quarter, which contributed to the first year of negative results since 2008. Events driving the market lower in the fourth quarter included, but were not limited to, concerns surrounding lingering trade concerns between the U.S. and China, commentary by the Fed signaling more rate increases and slowing growth in foreign economies. The elevated volatility in the fourth quarter also led some to question whether this was another transitory market pullback or the end of a bull market. Each of the critical indicators we track signal it was the former. However, we believe there are ongoing items that will need to be monitored closely going forward, including market and individual company valuations, the state of the global economy, unit labor costs and market breadth.

While we do not see signs of a bear market on the immediate horizon, we have taken advantage of opportunities to position the Fund for the later stages of the market cycle. The Fund continues to be skewed toward larger cap, franchise value businesses with higher barriers to entry. We also expect to emphasize businesses with lower financial leverage and pricing power to help offset wage inflation.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Focused Fund, the Russell 3000^®Index and the S&P 500^® Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was November 21, 1994.

Notes to Chart

The Frank Russell Company (FRC) is the source and owner of the Russell 3000^® Index data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.

Russell 3000^® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

S&P 500^® Index is a group of 500 widely held stocks and is commonly regarded to be representative of the large capitalization stock universe.

Management's Discussion of Fund Performance (Unaudited)

Touchstone Large Cap Core Equity Fund

Sub-Advised by The London Company

Investment Philosophy

The Touchstone Large Cap Core Equity Fund seeks long-term capital growth by investing primarily in common stocks of large-cap U.S. listed companies. The Fund seeks to purchase financially stable large-cap companies that it believes are consistently generating high returns on unleveraged operating capital, run by shareholder-oriented management, and trading at a discount to the company’s respective private market values.

Fund Performance

The Touchstone Large Cap Core Equity Fund underperformed its benchmark, the Russell 1000^® Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -6.49 percent, while the benchmark’s total return was -4.78 percent.

Market Environment

U.S. equities ended the year lower, but the ride from start to finish was anything but linear as volatility made an impactful return. After ending 2017 with historically low market volatility, January 2018 posted returns that were among the best on record, while December posted some of the worst.

Economic data was mostly positive for the year, but there were areas of potential concern, including housing and the impact of tariffs. While housing starts and existing home sales were relatively stable, growth was limited. Rhetoric surrounding potential trade wars dominated headlines throughout the year and intensified during the fourth quarter. The main risk, in particular, was between the U.S. and China, where a number of tariffs were either announced or already enacted.

In terms of monetary policy, as expected, the U.S. Federal Reserve Board (Fed) increased the federal funds rate by 25 basis points during December, with a new target of 2.25 to 2.5 percent. This marked the fourth rate hike during the 12-month period and ninth rate hike since the Fed began raising rates in December 2015. The Fed also communicated that any additional rate hikes would be dependent on economic data. Thus, following concerns about recent economic data, expectations for three additional rate hikes in 2019 were changed to only two hikes. Further, the pace of inflation continued to trend in the 2 percent range during the year, which was in line with the Fed’s target.

At the end of the 12-month period, all of the major stock indexes posted declines, with large-cap stocks faring better than small-cap stocks. Growth stocks outperformed value stocks for the year, value stocks outperformed growth stocks during the fourth quarter. Benchmark performance was led by the Health Care and Information Technology sectors, while the Energy, Materials, Industrials and Financials sectors lagged.

Portfolio Review

During the 12-month period, stock selection contributed positively to relative Fund performance but was offset by negative sector allocation. At the sector level, an underweight to the Health Care sector and an overweight to the Financials sector had a negative impact on relative performance. This was offset by the positive impact from an overweight to the Consumer Discretionary sector and an underweight to Energy.

Among the individual stocks that contributed to relative Fund performance during the period were O’Reilly Automotive Inc., Nike Inc. (both from the Consumer Discretionary sector), Visa Inc. (Information Technology sector), Progressive Corp. and Berkshire Hathaway Inc. (both from the Financials sector).

O’Reilly Automotive, an automotive parts retailer, outperformed as the company reported better than expected same-store sales and increased guidance. O’Reilly also continued to gain market share in both mature and new

Management's Discussion of Fund Performance (Unaudited) (Continued)

markets, and it remained the gold standard for service and logistics in its industry. Additionally, the average age of cars on the road has continued to rise, which should be a tailwind for the stock in the mid-term. Nike is a retailer of footwear, apparel, sports equipment and accessories. Nike outperformed during the period in which the Fund owned the stock, following a resumption of growth in its North American segment after several quarters of deceleration. The stock was sold from the Fund early during the fourth quarter due to valuation concerns. Visa, a global payments technology company, traded higher during the year which was driven by consistently strong results. In particular, Visa has produced strong cash flow and redistributed extra cash to shareholders. It also has a firm position in the market for global payments with significant barriers to entry. Looking forward, we believe the economic backdrop for Visa should remain strong, driven by healthy economies around the world, and the shift to credit and electronic commerce. Progressive, an insurance provider, outperformed as the company continued to post strong premium growth along with profitable underwriting results, and its combined expense ratio came in lower than expected. Progressive also posted improved top-line growth in both its auto and home insurance policies, and both of its digital and agency platforms increased market share. Berkshire Hathaway, a multinational conglomerate holding company, moved higher during the year following solid operating results across most of its segments. In July, the board of directors amended its share repurchase program to allow for buybacks at such time a repurchase price is believed to be below intrinsic value, which was a revision from the prior program. Going forward, we believe the company offers downside protection, particularly in light of management’s extensive record of superb capital allocation.

Among the individual stocks that detracted from relative Fund performance during the period were FedEx Corp., Southwest Airlines Co. (both from the Industrials sector), Carnival Corp. (Consumer Discretionary sector), Altria Group Inc. (Consumer Staples sector) and BlackRock Inc. (Financials sector). FedEx, a multinational courier delivery service, was generally flat most of the year but fell sharply during the fourth quarter. In general, economically sensitive transportation stocks were hit hard during the quarter based on concerns of macroeconomic weakening. FedEx, in particular, moved lower after its third-quarter results were impacted unexpectedly by weakness in Europe and troubles with its integration of TNT Express NV that caused management to push cost savings targets out several years. Southwest Airlines, a low-cost airline carrier, lagged early in the year resulting from headwinds to its unit revenues and costs. The stock underperformed sharply in the fourth quarter as commentary surrounding its unit costs for 2019 unnerved investors. We view these issues as largely transitory and feel the market overreacted, as the company still expects to expand margins next year. Going forward, we feel that Southwest Airlines is a best-of-breed business with strong management, a good balance sheet and favorable capital allocation policies. Carnival Corp., a cruise ship operator, underperformed as investors grew concerned about the combination of weakening demand from Europe and increasing capacity. The stock fell sharply during the fourth quarter as the market responded negatively to Carnival’s reports of a solid fiscal quarter but disappointing guidance for 2019. Though investor sentiment was depressed, we believe Carnival’s focus on return on capital and its policy of returning excess cash to shareholders should benefit the company going forward. Altria, the owner of multiple tobacco operating companies, struggled in 2018 as volumes continued to decline. During the fourth quarter, the company came under pressure after announcing investments in both Cronos Group Inc. (a Canadian cannabis company) and Juul (a U.S. vaporizer company). In general, the market has viewed the Juul acquisition negatively. However, we believe Altria has historically been an intelligent capital allocator, and we think people are likely underestimating the potential value that the partnership between Altria and Juul could create. BlackRock, a global investment management company, underperformed along with its peers as concerns about asset flows weighed on sentiment. We maintained the Fund’s position as we believe BlackRock is a well-run company with a conservative balance sheet, attractive cash flow profile and shareholder-friendly mindset. Longer term, we believe BlackRock is positioned to benefit from the trend toward passive investing due to its scale and technological leadership.

During the 12-month period, we opportunistically took advantage of market weakness and added to the Fund’s position in Alphabet Inc. (Information Technology sector). We believe Alphabet, a multinational conglomerate

Management's Discussion of Fund Performance (Unaudited) (Continued)

that includes Google Inc. and its internet products, is structurally advantaged with long-term tailwinds from cloud computing and data centers. We also added to FedEx Corp. as a result of the strength in the U.S. economy and the company’s strong position in the package delivery market. Finally, we added to Southwest Airlines Co. because of its attractive valuation and signs of improving traffic and higher pricing. We also feel the company is positioned well in a consolidated industry.

We initiated positions in Albemarle Corp. (Materials sector), The Home Depot Inc. (Consumer Discretionary sector), Martin Marietta Materials Inc. (Materials sector) and Nestle SA (Consumer Staples sector). Albemarle is a specialty chemical company with three reporting segments: lithium, bromine specialties and catalysts. A primary use of lithium is in rechargeable batteries, which is expected to see growing demand over the next several years for electric vehicles, portables and rechargeable consumer electronics. Albemarle also maintains a strong balance sheet and has benefited from growth in its operating cash flow. Further, the company generates attractive earnings margins, which reflects its leadership positions in its markets. Home Depot is the world’s largest home improvement specialty retailer, with industry-leading margins and returns on capital. Home Depot has benefited from strong housing-related tailwinds and is expected to do so for some time and has a solid history of capital allocation. Further, the company has produced strong earnings margins and operating cash flow, as well as a solid balance sheet. We initiated the position in Martin Marietta Materials as a result of our positive view of the aggregates industry in particular, its oligopoly with pricing power, strong return on capital and double-digit operating margins. Looking ahead, we believe the company should benefit from volume growth due to a strong U.S. economy and the need for greater infrastructure spending. Nestle is the largest food company in the world with scale and brand advantages. The company is well diversified among geographies with approximately 60 percent of sales occurring in developed markets and 40 percent in emerging markets, where growth and margins are higher. The company is exposed to many large staple categories and also has a valuable stake in L’Oréal Co. Nestle has a strong balance sheet and solid earnings, and also generates an attractive cash flow. Further, we believe the company has balance sheet flexibility to help weather potential downturns in the market.

Outlook

The combination of solid economic growth, low inflation and relatively low interest rates usually create a positive environment for stocks. We believe this holds true today, but we maintain a more balanced view as valuations have improved in recent months; the broader market now trades at a slight discount to its long-term average. We also believe there are potential risks, including rising debt levels, wage inflation, the impact of increasing tariffs, or the Fed taking a more aggressive stance.

Looking ahead, we will continue to seek companies with strong returns on capital and sustainable competitive advantages. We remain attracted to the return-on-capital metric because it speaks to the ability of the company to generate cash, which is ultimately what potentially lowers risk. We also tend to be attracted to businesses that are overcapitalized and under-levered. We believe an under-levered company has more options available to it if the economy falls into a recession, including changing its capital structure to lower its overall cost of capital. We believe the Fund is well-positioned based on the strength of the companies it owns and the overall valuation of its portfolio.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Large Cap Core Equity Fund and the Russell 1000^® Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was May 1, 1999.

Notes to Chart

Russell 1000^® Index measures the performance of the 1,000 largest companies in the Russell 3000^® Index.

The Frank Russell Company (FRC) is the source and owner of the Russell 1000^® Index data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.

Management's Discussion of Fund Performance (Unaudited)

Touchstone Small Company Fund

Sub-Advised by Fort Washington Investment Advisors, Inc.

Investment Philosophy

The Fund seeks to provide investors with growth of capital by investing primarily in common stocks of small companies that the sub-advisor believes are high quality, have superior business models, solid management teams, sustainable growth potential and are attractively valued.

Fund Performance

The Touchstone Small Company Fund outperformed its benchmark, the Russell 2000^® Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -7.98 percent while the return of the benchmark was -11.01 percent.

Market Environment

Small-cap equity markets experienced a volatile 2018. The year started slow with the benchmark essentially flat in the first quarter. However, the second and third quarters saw strong gains by the Index, culminating in setting an all-time high in the third quarter. In an abrupt turn of events, the benchmark declined significantly in the fourth quarter and entered bear market territory. We believe that the sell-off was driven by a confluence of factors. One was an expectation of higher than expected interest rates from the U.S. Federal Reserve Board (Fed), and as a result tighter financial conditions. Another factor was intensified global trade dispute concerns, particularly with China. China, as well as emerging and developed economies overseas, experienced a significant deceleration in economic conditions and stock market valuations over 2018. Lastly, there was an increased focus on what stage is the U.S. economy currently operating, and when the next recession may occur.

At the sector level, Consumer Staples, Health Care, Information Technology, Communication Services, Consumer Discretionary, and Utilities outperformed the benchmark. The Financials and Real Estate sectors performed in-line with the benchmark. The Energy, Industrials, and Materials sectors all underperformed.

Portfolio Review

The Fund’s top performing sectors were Information Technology, Industrials, and Health Care. The Fund’s bottom three performing sectors were Financials, Communication Services, and Real Estate. The Fund did not hold any stocks in the Utilities sector which negatively impacted performance as the benchmark sector experienced positive returns for the year.

Mergers and acquisitions activity remained a theme in the Fund’s portfolio and continued to benefit relative performance in 2018. The investment process uncovered stocks of companies that have historically been attractive acquisition targets for strategic and financial buyers. In 2018, long-term holding Esterline Technologies Corp. (Industrials sector), a diversified manufacturer of aerospace and industrials products was acquired by TransDigm Group. A number of Information Technology sector holdings were acquired during the year as well. Finisar Inc., a provider of optical solutions to the data and telecommunications markets, was acquired by II-IV Inc.; Microsemi Corporation, a semiconductor manufacturer, was acquired by strategic buyers. Also, VeriFone Systems, Inc., a leading provider of point-of-sale software and hardware, and Blackhawk Network Holdings, a provider of digital and physical gift cards, were both acquired by private equity firms.

The Fund’s top contributors to relative performance were Haemonetics Corporation and Tactile Systems Technology, Inc. (both Health Care sector), and the aforementioned Esterline Technologies (Industrials sector).

The Fund’s largest detractors to relative performance for the year were Knight-Swift Transportation Holdings Inc. (Industrials sector), MEDNAX, Inc. (Health Care sector), and KB Home (Consumer Discretionary sector).

Management's Discussion of Fund Performance (Unaudited) (Continued)

KB Home and Health Care Services Group were sold from the Fund in 2018, as we believed the challenges that the business models experienced would persist in 2019. The Fund maintained positions in MEDNAX, Inc., Knight-Swift Transportation Holdings Inc., and Tivity Health Inc. at the end of the year for their potential.

At the end of the year, the Fund was overweight to Information Technology, Industrials, and Health Care, roughly in line to Consumer Discretionary, and underweight to Consumer Staples, Real Estate, and Financials. The Fund had no exposure to the Energy, Materials, and Utilities sectors. The overall positioning relative to the small-cap index was consistent through the year.

Outlook

The economic backdrop remains favorable for growth in 2019 with the U.S. offering a relative opportunity compared with non-U.S. equity markets. After the sell-off at year end, the valuations in small-cap companies have become more attractive than where they started the year and are already pricing in a recession. Furthermore, we believe that value has more tailwinds than growth in this environment.

We remain focused on executing our fundamental stock selection and portfolio management process. We believe that stocks experience a four stage investment cycle and our research process is focused on the dynamics that apply to each stage of the investment cycle. We believe that excess returns and lower volatility are driven by the ability to successfully identify a stock’s current stage and the potential for it to transition to a different stage of its investment cycle.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Small Company Fund and the Russell 2000^® Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was November 30, 2000.

Notes to Chart

Russell 2000^® Index measures the performance of the small-cap segment of the U.S. equity universe.

The Frank Russell Company (FRC) is the source and owner of the Russell 2000^® Index data contained or reflected in this material and all trademarks and copyrights related thereto. The material may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is a Touchstone Investments presentation of the data, and FRC is not responsible for the formatting or configuration of this material or for any inaccuracy in the presentation thereof.

Management's Discussion of Fund Performance (Unaudited)

Touchstone ETF Funds

Sub-Advised by Wilshire Associates Incorporated

Touchstone Aggressive ETF Fund

Touchstone Conservative ETF Fund

Touchstone Moderate ETF Fund

Investment Philosophy

Three funds which invest in Exchanged-Traded Funds (ETFs) are available for investors seeking “lifestyle” products for their annuity holdings. The three strategic options include: the Conservative, Moderate, and Aggressive ETF Funds. These funds allocate their assets among up to ten ETFs. These ten ETF selections generally do not change dramatically over time. The more conservative fund has a higher bond weighting and the more aggressive fund has a lower bond weighting.

Fund Performance

The Touchstone Aggressive ETF Fund underperformed its benchmark, the S&P Target Risk^® Aggressive Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -7.84 percent while the total return of the benchmark was -7.65 percent. The Touchstone Conservative ETF Fund underperformed its benchmark, the S&P Target Risk^® Moderate Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -4.02 percent while the total return of the benchmark was -3.72 percent. The Touchstone Moderate ETF Fund underperformed its benchmark, the S&P Target Risk^® Growth Index, for the 12-month period ended December 31, 2018. The Fund’s total return was -6.02 percent while the total return of the benchmark was -5.69 percent.

Market Environment

The U.S. stock market, represented by the Russell 3000^® Index, was down in 2018. Eight of the eleven major sectors declined during 2018, with Health Care, Utilities and Information Technology ending the year with positive returns. The worst performing sectors were Energy and Materials. Large capitalization stocks outperformed small-cap stocks while growth stocks outperformed their value counterparts during the twelve-month period.

Equity markets outside of the U.S. were negative for 2018 in both developed and emerging markets, with double-digit losses across the major indices. Although the European Union began the year in sound economic condition, growth declined steadily throughout the year as gains in unemployment stalled and industrial production reversed course. News out of Japan was grim with a report showing a serious economic contraction during the third quarter that threatened to end Japan’s longest expansion since the 1980s. Emerging Markets underperformed nearly all of the major indices for 2018.

The bellwether 10-year U.S. Treasury yield ended the year at 2.69 percent, up 29 basis points from its 2017 finish of 2.40 percent. The Federal Open Market Committee increased its overnight rate four times in 2018, a total increase of 100 basis points, to a range of 2.25 percent to 2.50 percent. Credit spreads widened during the year within both the investment grade and high yield markets.

Real estate securities declined in the U.S. for the year, but slightly outperformed global real estate. Commodities were down for the one-year period as crude oil fell 25 percent from the close of 2017. Master limited partnership returns remained negative for the year. Finally, gold prices ended 2018 down slightly from last year.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Portfolio Review

The Funds’ investments are determined by an optimization process that considers the long-term historical risk and return profiles of various asset classes. For example, U.S. value equities were boosted relative to growth due to the perceived valuation opportunity and relative attractiveness. During the 2018 market environment, when value underperformed across U.S. stocks, the overweight positioning in the Funds relative to their respective benchmarks detracted from relative performance. Similarly, the overweight of the Funds to credit-sensitive fixed income was a headwind as was the related underweight to investment-grade, foreign fixed income, which outperformed its domestic counterpart.

Thematically, the several changes that occurred during 2018 were similar across all three Funds. Exposure to core and investment grade corporate fixed income was reduced, and a material allocation to short-term fixed income was initiated in order to further reduce portfolio interest rate risk. In addition, an overweight to domestic value equities was initiated, sourced from domestic large-cap blend equities, in order to take advantage of the more attractive valuations for value equities and lower beta¹ profile. An overweight to small-cap domestic equities (relative to large-cap) was initiated in order to reduce exposure to the potential negative impacts of a trade war, since small-cap equities generally have had a smaller percentage of their sales attributed to foreign markets. The 2017 tax law changes were also expected to disproportionately benefit profitable small-cap companies, which had less flexibility to declare profits in lower tax foreign markets, rather than in the U.S.

Outlook

After an estimated 25 percent growth in corporate earnings during 2018, earnings are projected to grow less than 10 percent during 2019. Domestic equity markets have priced in reduced growth and on a forward price-earnings (P/E) basis, we believe equities are no longer expensive. Although the Funds remain positioned somewhat conservatively relative to long-term allocation targets, the Funds remain invested in risk assets. We previously pared back credit risk and duration risk, but they are at our target weight for long-only equities. We continue to expect a positive economic growth environment in the near future, and therefore, believe that the current economic landscape warrants low (relative to historical averages) interest rates on the longer end of the curve.

Global economic growth remains positive. While the forward-looking Purchasing Managers’ Index (PMI), which is an indicator of economic health in the manufacturing sector of a country or a region, has fallen in recent quarters, it continues to express positive economic momentum. Although measures of inflation are rising on a global basis, we believe they will remain low by historical standards. Given that global growth and inflation remain moderate, we believe that global central banks will be cautious about tightening monetary policy and will seek to communicate policy changes to the markets well in advance. Given ultra-low foreign developed market bond yields, we favor domestic fixed income over global fixed income; however, we recognize that any weakness in the U.S. dollar could serve to benefit foreign fixed income.

Strong U.S. corporate earnings growth helped propel domestic equity prices upwards early in 2018, but trade concerns weighed on the growth outlook for equities late in the year and led to a sharp sell-off in risk assets. Domestic equities are now mildly cheap in terms of forward P/E ratios. We believe the outlook for continued domestic and foreign gross domestic product (GDP) growth remains positive which reduces the downside risk of a continued equity market sell-off, unless economic growth slows meaningfully and recession fears grow. Rising rates may concern investors who may believe that the increase in interest rates will weigh on corporate earnings going forward. While we acknowledge this risk, we believe that it is important to recognize the potential demand for U.S. Treasury bonds from yield-seeking foreign investors. With respect to credit markets, there is potential that further erosion in the corporate earnings outlook could lead to further spread widening, though credit spreads have already priced in some slowdown and are now trading at what we believe to be more attractive levels.

¹Beta is a measure of the volatility of a portfolio relative to its benchmark.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Aggressive ETF Fund and the S&P Target Risk^® Aggressive Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was July 16, 2004.

Note to Chart

The S&P Target Risk^® Aggressive Index is one of four multi-asset class indices that compose the S&P Target Risk Series. The S&P Target Risk^® Aggressive Index emphasizes exposure to equities, maximizing opportunities for long-term capital accumulation. It may include small allocations to fixed income to enhance portfolio efficiency.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Conservative ETF Fund and the S&P Target Risk^® Moderate Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was July 16, 2004.

Note to Chart

The S&P Target Risk^® Moderate Index is one of four multi-asset class indices that compose the S&P Target Risk Series. The S&P Target Risk^® Moderate Index offers significant exposure to fixed income, while also increasing opportunities for higher returns through equities.

Management's Discussion of Fund Performance (Unaudited) (Continued)

Comparison of the Change in Value of a $10,000 Investment in the

Touchstone Moderate ETF Fund and the S&P Target Risk^® Growth Index

Performance information does not reflect fees that are paid by the separate accounts through which shares of the Fund are sold. Inclusion of those fees would reduce figures for all periods.

The inception date of the Fund was July 16, 2004.

Note to Chart

The S&P Target Risk^® Growth Index is one of four multi-asset class indices that compose the S&P Target Risk Series. The S&P Target Risk^® Growth Index increases exposure to equities, while also providing limited fixed income exposure to diversify risk.

Tabular Presentation of Portfolios of Investments (Unaudited)

December 31, 2018

The illustrations below provide each Fund’s credit quality and/or sector allocation. We hope it will be useful to shareholders as it summarizes key information about each Fund’s investments.

Touchstone Active Bond Fund
Credit Quality*	(% of Investment Securities)
AAA/Aaa		44.3	%
AA/Aa		5.8
A/A		11.9
BBB/Baa		27.2
BB/Ba		1.0
CCC		0.5
Not Rated		7.9
Cash Equivalents		1.4
Total		100.0	%

Touchstone Balanced Fund
Credit Quality*	(% of Fixed Income Securities)
AAA/Aaa		57.0	%
AA/Aa		5.4
A/A		11.7
BBB/Baa		25.4
BB/Ba		0.3
Not Rated		0.2
		100.0	%

Sector Allocation**		(% of Net Assets)
Common Stocks
Information Technology		12.6	%
Financials		11.3
Communication Services		10.6
Consumer Discretionary		9.0
Health Care		8.7
Industrials		4.9
Real Estate		2.9
Consumer Staples		2.7
Energy		2.3
Corporate Bonds		13.6
U.S. Treasury Obligations		10.4
U.S. Government Mortgage-Backed		7.7
Obligations
Exchange-Traded Fund		1.8
Sovereign Bonds		0.2
Preferred Stock		0.1
Short-Term Investment Fund		1.2
Other Assets/Liabilities (Net)		0.0
Total		100.0	%

Credit quality ratings are from Standard & Poor's (“S&P”) and Moody's Investors Service (“Moody's”). If agency ratings differ, the higher rating will be used. Where no rating has been assigned, it may be for reasons unrelated to the creditworthiness of the issuer.

Sector Classifications are based upon the Global Industry Classification Standard (GICS^®).

Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)

Touchstone Bond Fund
Credit Quality*	(% of Investment Securities)
AAA/Aaa		42.7	%
AA/Aa		5.2
A/A		12.4
BBB/Baa		27.6
BB/Ba		1.1
Not Rated		8.7
Cash Equivalents		2.3
Total		100.0	%

Touchstone Common Stock Fund
Sector Allocation**	(% of Net Assets)
Information Technology		18.7	%
Communication Services		18.3
Financials		18.0
Health Care		13.5
Consumer Discretionary		12.2
Industrials		6.4
Real Estate		5.2
Energy		3.7
Consumer Staples		3.2
Short-Term Investment Fund		0.8
Other Assets/Liabilities (Net)		(0.0	)
Total		100.0	%

Touchstone Focused Fund
Sector Allocation**	(% of Net Assets)
Information Technology		18.9	%
Financials		16.8
Health Care		15.8
Communication Services		15.7
Consumer Discretionary		12.1
Industrials		6.4
Real Estate		5.0
Energy		3.5
Consumer Staples		3.3
Short-Term Investment Fund		2.6
Other Assets/Liabilities (Net)		(0.1	)
Total		100.0	%

Touchstone Large Cap Core Equity Fund
Sector Allocation**	(% of Net Assets)
Financials		24.8	%
Consumer Discretionary		20.1
Information Technology		13.5
Industrials		13.0
Materials		8.4
Consumer Staples		8.0
Communication Services		7.0
Energy		2.1
Health Care		1.9
Short-Term Investment Fund		1.4
Other Assets/Liabilities (Net)		(0.2	)
Total		100.0	%

Sector Classifications are based upon the Global Industry Classification Standard (GICS^®).

Tabular Presentation of Portfolios of Investments (Unaudited) (Continued)

Touchstone Small Company Fund
Sector Allocation*	(% of Net Assets)
Information Technology		24.1	%
Industrials		22.5
Health Care		19.8
Consumer Discretionary		13.8
Financials		10.1
Communication Services		2.9
Consumer Staples		2.1
Real Estate		1.4
Short-Term Investment Fund		3.7
Other Assets/Liabilities (Net)		(0.4	)
Total		100.0	%

Touchstone Aggressive ETF Fund
Sector Allocation	(% of Net Assets)
Exchange-Traded Funds
Equity Funds		79.8	%
Fixed Income Funds		17.5
Short-Term Investment Funds		15.9
Other Assets/Liabilities (Net)		(13.2	)
Total		100.0	%

Touchstone Conservative ETF Fund
Sector Allocation	(% of Net Assets)
Exchange-Traded Funds
Fixed Income Funds		57.9	%
Equity Funds		39.6
Short-Term Investment Funds		15.4
Other Assets/Liabilities (Net)		(12.9	)
Total		100.0	%

Touchstone Moderate ETF Fund
Sector Allocation	(% of Net Assets)
Exchange-Traded Funds
Equity Funds		59.7	%
Fixed Income Funds		38.0
Short-Term Investment Funds		15.8
Other Assets/Liabilities (Net)		(13.5	)
Total		100.0	%

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

Portfolio of Investments

Touchstone Active Bond Fund – December 31, 2018

Principal			Market
Amount			Value

		Corporate Bonds — 40.2%

		Financials — 10.2%
$	38,000	Allstate Corp. (The), Ser B,
		5.750%, 8/15/53	$	37,050
	218,000	American Express Co.,
		3.000%, 10/30/24		208,613
	144,000	Bank of America Corp.,
		3.705%, 4/24/28		138,135
	245,000	Bank of America Corp. MTN,
		4.000%, 1/22/25		238,666
	212,000	Bank of Montreal (Canada),
		3.803%, 12/15/32		196,312
	212,000	Bank of New York Mellon Corp. (The)
		MTN, 2.950%, 1/29/23		208,663
	230,000	Bank of Nova Scotia (The), (Canada),
		(3M LIBOR +0.620%),		227,663
		3.424%, 9/19/22^(A)
	200,000	Barclays PLC (United Kingdom),
		4.610%, 2/15/23		198,312
	210,000	BB&T Corp. MTN, 2.850%, 10/26/24		201,761
	125,000	Citigroup, Inc., 3.300%, 4/27/25		118,707
	320,000	Citigroup, Inc., (3M LIBOR +1.430%),
		4.168%, 9/1/23^(A)		320,177
	84,000	Citigroup, Inc., 4.750%, 5/18/46		77,655
	175,000	Fifth Third Bancorp, 2.875%, 7/27/20		173,991
	200,000	GE Capital International Funding Co.
		Unlimited Co. (Ireland),
		4.418%, 11/15/35		167,513
	223,000	General Motors Financial Co., Inc.,
		3.200%, 7/13/20		220,232
	280,000	Goldman Sachs Group, Inc. (The), (3M
		LIBOR +1.000%), 3.487%, 7/24/23^(A)		272,073
	110,000	Goldman Sachs Group, Inc. (The),
		3.691%, 6/5/28		102,231
	115,000	Goldman Sachs Group, Inc. (The),
		5.250%, 7/27/21		119,381
	200,000	HSBC Holdings PLC (United Kingdom),
		3.900%, 5/25/26		191,641
	300,000	Huntington Bancshares, Inc.,
		4.000%, 5/15/25		301,567
	155,000	JPMorgan Chase & Co., (3M LIBOR
		+0.730%), 3.207%, 4/23/24^(A)		149,753
	145,000	JPMorgan Chase & Co.,
		3.250%, 9/23/22		143,849
	205,000	JPMorgan Chase & Co.,
		3.509%, 1/23/29		194,115
	216,000	Lloyds Banking Group PLC (United
		Kingdom), 3.574%, 11/7/28		192,137
	233,000	Morgan Stanley, 3.737%, 4/24/24		231,016
	170,000	Morgan Stanley, 3.950%, 4/23/27		160,275
	155,000	Northwestern Mutual Life Insurance
		Co. (The), 144a, 3.850%, 9/30/47		140,361
	160,000	PNC Bank NA, 2.700%, 11/1/22		155,480
	174,000	Prudential Financial, Inc.,
		5.625%, 6/15/43		170,403
	224,000	Royal Bank of Canada (Canada) MTN,
		3.200%, 4/30/21		223,977
	215,000	SunTrust Banks, Inc., 4.000%, 5/1/25		215,691
				5,697,400

		Energy — 4.8%
	234,000	Boardwalk Pipelines LP,
		4.450%, 7/15/27		216,053
	184,000	Cenovus Energy, Inc. (Canada),
		4.250%, 4/15/27		167,591
	196,000	Cheniere Corpus Christi Holdings LLC,
		7.000%, 6/30/24		206,780
	162,000	Columbia Pipeline Group, Inc.,
		4.500%, 6/1/25		163,167
	216,000	Enbridge, Inc. (Canada), (3M LIBOR
		+0.700%), 3.488%, 6/15/20^(A)		215,253
	215,000	Energy Transfer Partners LP,
		4.950%, 6/15/28		210,359
	141,000	EOG Resources, Inc., 3.900%, 4/1/35		133,119
	230,000	Kinder Morgan Energy Partners LP,
		3.500%, 9/1/23		223,415
	198,000	Midcontinent Express Pipeline LLC,
		144a, 6.700%, 9/15/19		199,857
	154,000	Newfield Exploration Co.,
		5.375%, 1/1/26		150,920
	116,000	NGPL PipeCo LLC, 144a,
		7.768%, 12/15/37		132,240
	135,000	Petroleos Mexicanos (Mexico),
		4.500%, 1/23/26		116,370
	76,000	Petroleos Mexicanos (Mexico), 144a,
		5.350%, 2/12/28		66,310
	155,000	Petroleos Mexicanos (Mexico), 144a,
		6.350%, 2/12/48		124,000
	210,000	Shell International Finance BV
		(Netherlands), 1.875%, 5/10/21		204,537
	2,200	Transocean Phoenix 2 Ltd. (Cayman
		Islands), 144a, 7.750%, 10/15/24		2,189
	166,000	Valero Energy Corp., 4.350%, 6/1/28		164,450
				2,696,610

		Health Care — 3.9%
	58,000	Abbott Laboratories,
		3.750%, 11/30/26		57,281
	174,000	AbbVie, Inc., 4.450%, 5/14/46		152,205
	90,000	Allergan Funding SCS (Luxembourg),
		3.800%, 3/15/25		87,860
	205,000	Allergan Sales LLC, 144a,
		5.000%, 12/15/21		210,924
	185,000	Catholic Health Initiatives,
		4.200%, 8/1/23		187,609
	142,000	Celgene Corp., 5.000%, 8/15/45		131,305
	164,000	Cigna Corp., 144a, 4.375%, 10/15/28		164,915
	200,000	CVS Health Corp., 4.300%, 3/25/28		195,522
	130,000	CVS Health Corp., 5.125%, 7/20/45		126,543
	160,000	Express Scripts Holding Co.,
		3.300%, 2/25/21		159,413
	204,000	Shire Acquisitions Investments Ireland
		DAC (Ireland), 2.400%, 9/23/21		197,265

Touchstone Active Bond Fund(Continued)

Principal			Market
Amount			Value

		Corporate Bonds — 40.2% (Continued)

		Health Care — (Continued)
$	138,000	Thermo Fisher Scientific, Inc.,
		3.600%, 8/15/21	$	138,406
	228,000	UnitedHealth Group, Inc.,
		2.375%, 10/15/22		221,002
	140,000	Zimmer Biomet Holdings, Inc.,
		3.150%, 4/1/22		136,879
				2,167,129

		Consumer Staples — 3.5%
	250,000	Anheuser-Busch Cos. LLC /
		Anheuser-Busch InBev Worldwide,
		Inc., 144a, 4.900%, 2/1/46		231,846
	226,000	Cargill, Inc., 144a, 3.050%, 4/19/21		225,776
	186,000	Conagra Brands, Inc., 4.850%, 11/1/28		182,907
	167,000	General Mills, Inc., (3M LIBOR
		+1.010%), 3.459%, 10/17/23^(A)		163,120
	200,000	Grupo Bimbo SAB de CV (Mexico),
		144a, 4.500%, 1/25/22		203,700
	292,000	Imperial Brands Finance PLC (United
		Kingdom), 144a, 4.250%, 7/21/25		287,206
	130,000	Kraft Heinz Foods Co., 6.875%, 1/26/39		145,045
	208,000	Moody's Corp., 2.750%, 12/15/21		203,985
	192,000	Reynolds American, Inc.,
		4.450%, 6/12/25		185,133
	106,000	Tyson Foods, Inc., 3.900%, 9/28/23		105,852
				1,934,570

		Consumer Discretionary — 3.4%
	210,000	Aptiv PLC (Jersey), 3.150%, 11/19/20		207,900
	230,000	AutoNation, Inc., 5.500%, 2/1/20		235,014
	340,000	BMW US Capital LLC, 144a,
		3.100%, 4/12/21		336,732
	226,000	Booking Holdings, Inc., 3.600%, 6/1/26		219,570
	224,000	Dollar Tree, Inc., (3M LIBOR +0.700%),
		3.149%, 4/17/20^(A)		222,571
	40,000	Ford Motor Co., 4.750%, 1/15/43		30,847
	112,000	Ford Motor Credit Co. LLC,
		4.140%, 2/15/23		106,457
	146,000	General Motors Financial Co., Inc.,
		4.350%, 4/9/25		138,328
	150,000	Home Depot, Inc. (The),
		5.950%, 4/1/41		184,067
	224,000	Toyota Motor Credit Corp. MTN,
		2.950%, 4/13/21		224,034
				1,905,520

		Communication Services — 3.4%
	195,000	Activision Blizzard, Inc.,
		4.500%, 6/15/47		174,933
	105,000	AT&T, Inc., 3.950%, 1/15/25		102,675
	40,000	AT&T, Inc., 4.350%, 6/15/45		33,803
	125,000	AT&T, Inc., 4.500%, 5/15/35		112,225
	124,000	Charter Communications Operating
		LLC / Charter Communications
		Operating Capital,
		6.484%, 10/23/45		127,464
	118,000	Comcast Corp., 4.000%, 3/1/48		107,525
	165,000	Comcast Corp., 4.150%, 10/15/28		167,546
	141,000	Cox Communications, Inc., 144a,
		3.350%, 9/15/26		130,087
	142,000	Interpublic Group of Cos., Inc. (The),
		3.750%, 10/1/21		142,886
	91,000	Qwest Corp., 6.750%, 12/1/21		93,043
	212,000	Telecom Italia SpA/Milano (Italy),
		144a, 5.303%, 5/30/24		201,400
	331,000	Verizon Communications, Inc.,
		5.012%, 4/15/49		329,809
	153,000	Warner Media LLC, 3.800%, 2/15/27		143,560
				1,866,956

		Industrials — 2.9%
	265,000	Burlington Northern Santa Fe LLC,
		5.750%, 5/1/40		310,333
	200,000	CRH America Finance, Inc., 144a,
		4.500%, 4/4/48		177,774
	226,000	Eagle Materials, Inc., 4.500%, 8/1/26		224,386
	91,000	Embraer Netherlands Finance BV
		(Netherlands), 5.050%, 6/15/25		92,025
	93,000	Embraer Netherlands Finance BV
		(Netherlands), 5.400%, 2/1/27		96,023
	175,000	FedEx Corp., 5.100%, 1/15/44		172,281
	2,156	United Airlines 2014-2 Class B Pass
		Through Trust, 4.625%, 9/3/22		2,144
	150,000	Vulcan Materials Co., 4.500%, 4/1/25		149,006
	210,000	Wabtec Corp., 4.700%, 9/15/28		196,950
	200,000	Westrock Co., 144a, 4.650%, 3/15/26		203,056
				1,623,978

		Information Technology — 2.8%
	235,000	Apple, Inc., 2.750%, 1/13/25		226,601
	148,000	Apple, Inc., 4.650%, 2/23/46		156,664
	205,000	Dell International LLC / EMC Corp.,
		144a, 6.020%, 6/15/26		205,927
	175,000	Hewlett Packard Enterprise Co., 144a,
		2.100%, 10/4/19		173,028
	85,000	Microsoft Corp., 3.500%, 2/12/35		81,124
	210,000	NXP BV / NXP Funding LLC
		(Netherlands), 144a, 5.350%, 3/1/26		213,570
	170,000	Oracle Corp., 2.650%, 7/15/26		157,549
	200,000	QUALCOMM, Inc., 3.450%, 5/20/25		192,427
	134,000	Visa, Inc., 4.150%, 12/14/35		138,584
				1,545,474

		Real Estate — 2.7%
	208,000	Boston Properties LP REIT,
		3.200%, 1/15/25		198,614
	185,000	Crown Castle International Corp. REIT,
		3.650%, 9/1/27		171,502
	114,000	Kimco Realty Corp. REIT,
		3.125%, 6/1/23		110,260
	61,000	Mid-America Apartments LP, REIT,
		3.750%, 6/15/24		60,425

Touchstone Active Bond Fund(Continued)

Principal			Market
Amount			Value

		Corporate Bonds — 40.2% (Continued)

		Real Estate — (Continued)
$	193,000	Sabra Health Care LP REIT,
		5.125%, 8/15/26	$	178,867
	205,000	SL Green Operating Partnership LP
		REIT, 3.250%, 10/15/22		198,071
	131,000	Spirit Realty LP REIT, 4.450%, 9/15/26		125,849
	260,000	VEREIT Operating Partnership LP REIT,
		4.600%, 2/6/24		262,860
	184,000	Welltower, Inc. REIT, 4.250%, 4/1/26		183,673
				1,490,121

		Utilities — 1.4%
	69,000	DTE Energy Co., 3.700%, 8/1/23		68,517
	200,000	Electricite de France SA (France), 144a,
		4.500%, 9/21/28		193,847
	128,000	NextEra Energy Capital Holdings, Inc.,
		2.800%, 1/15/23		123,524
	150,000	Oncor Electric Delivery Co. LLC,
		3.800%, 9/30/47		141,850
	68,000	Pacific Gas & Electric Co., 144a,
		4.650%, 8/1/28		62,340
	124,000	PacifiCorp., 5.750%, 4/1/37		148,028
	82,000	WEC Energy Group, Inc., (3M LIBOR
		+2.113%), 4.729%, 5/15/67^(A)		66,905
				805,011

		Materials — 1.2%
	255,000	DowDuPont, Inc., 4.493%, 11/15/25		262,542
	192,000	Sherwin-Williams Co. (The),
		4.500%, 6/1/47		173,139
	238,000	Suzano Austria GmbH (Austria), 144a,
		5.750%, 7/14/26		242,760
				678,441
		Total Corporate Bonds	$	22,411,210

		U.S. Treasury Obligations — 29.3%
	2,575,000	U.S. Treasury Inflation Indexed Bonds,
		1.000%, 2/15/48		2,502,260
	3,030,000	U.S. Treasury Inflation Indexed Notes,
		0.750%, 7/15/28		2,987,648
	1,895,000	U.S. Treasury Note, 2.500%, 5/31/20		1,893,297
	7,790,000	U.S. Treasury Note, 2.500%, 3/31/23		7,790,913
	209,000	U.S. Treasury Note, 2.875%, 10/31/23		212,478
	920,000	U.S. Treasury Note, 2.875%, 8/15/28		934,231
		Total U.S. Treasury Obligations	$	16,320,827

		U.S. Government Mortgage-Backed
		Obligations — 9.9%
	19,549	FHLMC, Pool #A56988, 5.500%, 2/1/37		21,068
	118,526	FHLMC, Pool #A95946, 4.000%, 1/1/41		121,956
	90,689	FHLMC, Pool #A96485, 4.500%, 1/1/41		94,956
	28,082	FHLMC, Pool #G03217, 5.500%, 9/1/37		30,090
	14,921	FHLMC, Pool #G03781, 6.000%, 1/1/38		16,283
	62,691	FHLMC, Pool #J27931, 3.500%, 4/1/29		63,620
	302,721	FHLMC, Pool #Q51274,
		4.000%, 10/1/47		308,768
	6,375	FNMA, Pool #561741, 7.500%, 1/1/31		7,112
	9,003	FNMA, Pool #889734, 5.500%, 6/1/37		9,691
	11,563	FNMA, Pool #984256, 5.000%, 6/1/23		11,867
	10,150	FNMA, Pool #995472, 5.000%, 11/1/23		10,385
	65,317	FNMA, Pool #AB1149, 5.000%, 6/1/40		69,335
	61,391	FNMA, Pool #AB1800, 4.000%, 11/1/40		63,125
	101,565	FNMA, Pool #AD3795, 4.500%, 4/1/40		106,383
	142,901	FNMA, Pool #AD9150, 5.000%, 8/1/40		151,692
	198,302	FNMA, Pool #AE0548, 4.500%, 11/1/40		207,683
	157,889	FNMA, Pool #AE4429, 4.000%, 10/1/40		162,302
	12,255	FNMA, Pool #AH2666, 4.000%, 1/1/26		12,552
	21,170	FNMA, Pool #AH3493, 4.000%, 2/1/26		21,697
	263,755	FNMA, Pool #AJ5457, 4.000%, 11/1/41		271,209
	251,949	FNMA, Pool #AL0054, 4.500%, 2/1/41		263,874
	41,901	FNMA, Pool #AL2663, 4.000%, 1/1/26		42,911
	238,118	FNMA, Pool #AS7813, 4.000%, 8/1/46		243,201
	341,407	FNMA, Pool #AS8552, 3.000%, 12/1/36		337,735
	605,013	FNMA, Pool #AS8855, 3.500%, 2/1/37		612,013
	634,257	FNMA, Pool #BH6180, 4.000%, 7/1/47		646,736
	295,405	FNMA, Pool #MA1175, 3.000%, 9/1/42		290,669
	179,084	FNMA, Pool #MA1543, 3.500%, 8/1/33		182,414
	160,957	FNMA, Pool #MA2177, 4.000%, 2/1/35		166,985
	225,629	GNMA, Pool #4853, 4.000%, 11/20/40		233,039
	150,942	GNMA, Pool #4883, 4.500%, 12/20/40		158,466
	65,319	GNMA, Pool #736696, 4.500%, 5/15/40		68,055
	306,484	GNMA, Pool #AD1745,
		3.000%, 2/20/43		302,548
	227,987	GNMA, Pool #MA1157,
		3.500%, 7/20/43		230,583
		Total U.S. Government
		Mortgage-Backed Obligations	$	5,541,003
			��
	Shares

		Exchange-Traded Fund — 4.7%
	25,384	iShares JP Morgan USD Emerging
		Markets Bond ETF	$	2,637,651

	Principal
	Amount

		Asset-Backed Securities — 4.4%
$	249,353	CWHEQ Home Equity Loan Trust, Ser
		2007-S1, Class A5,
		6.018%, 11/25/36^(A)(B)		246,806
	241,866	Elara HGV Timeshare Issuer LLC, Ser
		2017-A, Class A, 144a,
		2.690%, 3/25/30		239,049
	261,688	Jimmy Johns Funding LLC, Ser
		2017-1A, Class A2I, 144a,
		3.610%, 7/30/47		260,947
	246,875	Jimmy Johns Funding LLC, Ser
		2017-1A, Class A2II, 144a,
		4.846%, 7/30/47		250,015
	155,000	SBA Tower Trust, 144a,
		2.898%, 10/15/44^(A)(B)		154,086

Touchstone Active Bond Fund(Continued)

Principal			Market
Amount			Value

		Asset-Backed Securities — 4.4% (Continued)
$	140,645	Sonic Capital LLC, Ser 2016-1A, Class
		A2, 144a, 4.472%, 5/20/46	$	142,700
	94,838	SpringCastle America Funding LLC,
		Ser 2016-AA, Class A, 144a,
		3.050%, 4/25/29		93,921
	325,000	Towd Point Mortgage Trust, Ser
		2015-3, Class A2, 144a,
		4.000%, 3/25/54^(A)(B)		329,738
	380,000	Voya CLO Ltd. (Cayman Islands), Ser
		2017-4A, Class A1, 144a, (3M LIBOR
		+1.130%), 3.566%, 10/15/30^(A)		373,380
	396,000	Wendys Funding LLC, Ser 2018-1A,
		Class A2I, 144a, 3.573%, 3/15/48		379,503
		Total Asset-Backed Securities	$	2,470,145

		Non-Agency Collateralized Mortgage
		Obligations — 3.3%
	243,580	CSMC Trust, Ser 2018-RPL9, Class A,
		144a, 3.850%, 9/25/57^(A)(B)		246,540
	4,268	Deutsche ALT-A Securities, Inc.
		Alternate Loan Trust, Ser 2003-2XS,
		Class A6, 5.470%, 9/25/33^(A)(B)		4,284
	431,181	EverBank Mortgage Loan Trust, Ser
		2013-1, Class B1, 144a,
		3.494%, 3/25/43^(A)(B)		429,524
	144,064	PMT Loan Trust, Ser 2013-J1, Class A11,
		144a, 3.500%, 9/25/43^(A)(B)		142,532
	97,994	Residential Asset Securitization Trust,
		Ser 2006-A1, Class 1A3,
		6.000%, 4/25/36		72,148
	264,479	Sequoia Mortgage Trust, Ser 2013-1,
		Class B1, 3.647%, 2/25/43^(A)(B)		265,241
	245,150	Sequoia Mortgage Trust, Ser 2013-10,
		Class B2, 144a, 3.560%, 8/25/43^(A)(B)		244,310
	341,215	Sequoia Mortgage Trust, Ser 2013-5,
		Class B1, 144a, 3.508%, 5/25/43^(A)(B)		342,474
	67,508	Structured Asset Securities Corp. Trust,
		Ser 2005-17, Class 5A1,
		5.500%, 10/25/35		51,606
	46,004	Washington Mutual Alternative
		Mortgage Pass-Through
		Certificates, Ser 2005-9, Class 2A4,
		5.500%, 11/25/35		42,135
		Total Non-Agency Collateralized
		Mortgage Obligations	$	1,840,794

		Agency Collateralized Mortgage
		Obligations — 2.4%
	325,000	FHLMC REMIC, Ser 4092, Class AY,
		3.000%, 8/15/32		313,686
	89,969	FNMA REMIC, Ser 2015-51, Class KC,
		3.000%, 6/25/45		89,473
	228,000	FNMA REMIC, Ser 2016-102, Class AY,
		3.000%, 1/25/37		219,433
	160,000	FNMA REMIC, Ser 2017-83, Class DL,
		3.000%, 10/25/37		153,838
	554,445	FNMA REMIC, Ser 2017-90, Class KA,
		3.000%, 11/25/47		556,288
		Total Agency Collateralized
		Mortgage Obligations	$	1,332,718

		Sovereign Bonds — 1.2%
	200,000	Mexico Government International
		Bond, 4.350%, 1/15/47		171,400
	220,000	Province of Alberta Canada, 2.200%,
		7/26/22		215,073
	208,000	Province of Ontario Canada, 1.875%,
		5/21/20		205,638
	73,000	Uruguay Government International
		Bond, 4.975%, 4/20/55		69,424
		Total Sovereign Bonds	$	661,535

		Commercial Mortgage-Backed Securities — 1.3%
	360,000	DBUBS Mortgage Trust, Ser
		2017-BRBK, Class B, 144a,
		3.530%, 10/10/34^(A)(B)		353,191
	375,000	GS Mortgage Securities Corp. II, Ser
		2017-SLP, Class B, 144a,
		3.772%, 10/10/32		377,573
		Total Commercial
		Mortgage-Backed Securities	$	730,764

		Municipal Bond — 0.6%

		New York — 0.6%
	320,000	NY Housing Development Corp., Ref 8
		Spruce Street Class B,
		3.864%, 2/15/48^(A)(B)	$	320,816

	Shares

		Preferred Stock — 0.4%

		Utilities — 0.4%
	8,129	Integrys Holding, Inc., 6.000%, 8/1/73	$	192,251

		Short-Term Investment Fund — 1.4%
	760,743	Dreyfus Government Cash
		Management, Institutional Shares,
		2.29%^∞Ω	$	760,743

		Total Investment Securities —99.1%
		(Cost $55,948,145)	$	55,220,457

		Other Assets in
		Excess of Liabilities — 0.9%		528,294
		Net Assets — 100.0%	$	55,748,751

Touchstone Active Bond Fund(Continued)

^(A)

Variable rate security - Rate reflected is the rate in effect as of December 31, 2018.

^(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, 2018.

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

USD - United States Dollar

144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2018, these securities were valued at $8,489,328 or 15.2% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

Other Information:

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

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Assets:
Corporate Bonds	$	—	$	22,411,210	$	—	$	22,411,210
U.S. Treasury Obligations		—		16,320,827		—		16,320,827
U.S. Government Mortgage-Backed Obligations		—		5,541,003		—		5,541,003
Exchange-Traded Fund		2,637,651		—		—		2,637,651
Asset-Backed Securities		—		2,470,145		—		2,470,145
Non-Agency Collateralized Mortgage Obligations		—		1,840,794		—		1,840,794
Agency Collateralized Mortgage Obligations		—		1,332,718		—		1,332,718
Sovereign Bonds		—		661,535		—		661,535
Commercial Mortgage-Backed Securities		—		730,764		—		730,764
Municipal Bond		—		320,816		—		320,816
Preferred Stock		192,251		—		—		192,251
Short-Term Investment Fund		760,743		—		—		760,743
Other Financial Instruments*
Futures Interest Rate Contracts		84,911		—		—		84,911
Total Assets	$	3,675,556	$	51,629,812	$	—	$	55,305,368

Touchstone Active Bond Fund(Continued)

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Liabilities:
Other Financial Instruments*
Futures Interest Rate Contracts	$	98,331	$	—	$	—	$	98,331
Total	$	3,577,225	$	51,629,812	$	—	$	55,207,037

*Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized appreciation (depreciation) on futures contracts.

Futures Contracts

At December 31, 2018, $18,889 was segregated with the broker as collateral for futures contracts. The Fund had the following futures contracts, brokered by Wells Fargo, open at December 31, 2018:

						Value and
						Unrealized
	Expiration			Notional		Appreciation/
Description	Date	Number of Contracts		Amount		(Depreciation)
Short Futures:
5-Year US Note Futures	4/3/2019		60	$	6,782,813	$	(98,331	)
Long Futures:
2-Year US Note Futures	4/3/2019		67	$	14,140,141		84,911
						$	(13,420	)

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Balanced Fund – December 31, 2018

			Market
Shares			Value

		Common Stocks — 65.0%

		Information Technology — 12.6%
	5,567	Microsoft Corp.	$	565,440
	2,869	Apple, Inc.		452,556
	2,731	salesforce.com, Inc.*		374,065
	7,181	Oracle Corp.		324,222
	4,292	Avnet, Inc.		154,941
	1,250	International Business Machines Corp.		142,088
				2,013,312

		Financials — 11.3%
	5,011	Berkshire Hathaway, Inc. - Class B*		1,023,146
	6,193	Brookfield Asset Management, Inc.
		(Canada) - Class A		237,502
	8,450	Bank of America Corp.		208,208
	1,128	Goldman Sachs Group, Inc. (The)		188,432
	1,435	Signature Bank/NewYork NY		147,532
				1,804,820

		Communication Services — 10.6%
	458	Alphabet, Inc. - Class C*		474,309
	2,486	Facebook, Inc. - Class A*		325,890
	6,749	Twenty-First Century Fox, Inc. - Class A		324,762
	6,110	Comcast Corp. - Class A		208,046
	6,447	AT&T, Inc.		183,997
	594	Charter Communications, Inc. - Class A*		169,272
				1,686,276

		Consumer Discretionary — 9.0%
	422	Amazon.com, Inc.*		633,831
	3,518	Starbucks Corp.		226,559
	3,744	Carnival Corp.		184,579
	90	Booking Holdings, Inc.*		155,018
	4,257	Yum China Holdings, Inc. (China)		142,737
	4,760	JD.com, Inc. (China) ADR*		99,627
				1,442,351

		Health Care — 8.7%
	4,311	Novartis AG (Switzerland) ADR		369,927
	2,248	Johnson & Johnson		290,104
	890	Biogen, Inc.*		267,819
	4,994	Bristol-Myers Squibb Co.		259,588
	2,668	AmerisourceBergen Corp.		198,499
				1,385,937

		Industrials — 4.9%
	2,069	United Technologies Corp.		220,307
	1,543	Union Pacific Corp.		213,289
	4,569	Johnson Controls International PLC		135,471
	2,887	Stericycle, Inc.*		105,924
	13,578	General Electric Co.		102,785
				777,776

		Real Estate — 2.9%
	1,574	Simon Property Group, Inc. REIT		264,416
	1,571	Jones Lang LaSalle, Inc. REIT		198,889
				463,305

		Consumer Staples — 2.7%
	3,839	Unilever NV (United Kingdom)		206,538
	2,761	Monster Beverage Corp.*		135,896
	914	JM Smucker Co. (The)		85,450
				427,884

		Energy — 2.3%
	2,491	Exxon Mobil Corp.		169,861
	3,317	Schlumberger Ltd.		119,677
	3,229	Halliburton Co.		85,827
				375,365
		Total Common Stocks	$	10,377,026

	Principal
	Amount

		Corporate Bonds — 13.6%

		Financials — 3.0%
$	3,000	Allstate Corp. (The), Ser B,
		5.750%, 8/15/53	2,925
	24,000	American Express Co.,
		3.000%, 10/30/24	22,967
	50,000	Bank of America Corp. MTN,
		4.000%, 1/22/25	48,707
	24,000	Bank of Montreal (Canada),
		3.803%, 12/15/32	22,224
	24,000	Bank of New York Mellon Corp. (The)
		MTN, 2.950%, 1/29/23	23,622
	22,000	BB&T Corp. MTN, 2.850%, 10/26/24	21,137
	18,000	Citigroup, Inc., 3.300%, 4/27/25	17,094
	11,000	Citigroup, Inc., 4.750%, 5/18/46	10,169
	18,000	Fifth Third Bancorp, 2.875%, 7/27/20	17,896
	20,000	Goldman Sachs Group, Inc. (The), (3M
		LIBOR +1.000%), 3.487%, 7/24/23^(A)	19,434
	32,000	Goldman Sachs Group, Inc. (The),
		3.691%, 6/5/28	29,740
	32,000	Huntington Bancshares, Inc./OH,
		4.000%, 5/15/25	32,167
	10,000	JPMorgan Chase & Co., (3M LIBOR
		+0.730%), 3.207%, 4/23/24^(A)	9,661
	15,000	JPMorgan Chase & Co.,
		3.250%, 9/23/22	14,881
	25,000	JPMorgan Chase & Co.,
		3.509%, 1/23/29	23,673
	17,000	Morgan Stanley, 3.737%, 4/24/24	16,855
	25,000	Morgan Stanley, 3.950%, 4/23/27	23,570
	18,000	Northwestern Mutual Life Insurance
		Co. (The), 144a, 3.850%, 9/30/47	16,300
	17,000	Prudential Financial, Inc.,
		5.625%, 6/15/43	16,649
	24,000	Royal Bank of Canada (Canada) MTN,
		3.200%, 4/30/21	23,998
	20,000	SunTrust Banks, Inc., 4.000%, 5/1/25	20,064
	17,000	Visa, Inc., 4.150%, 12/14/35	17,582
	30,000	Wells Fargo & Co., 4.125%, 8/15/23	30,177
			481,492

Touchstone Balanced Fund (Continued)

Principal			Market
Amount			Value

		Corporate Bonds — 13.6% (Continued)

		Energy — 1.8%
$	23,000	Boardwalk Pipelines LP,
		4.450%, 7/15/27	$	21,236
	17,000	Cenovus Energy, Inc. (Canada),
		4.250%, 4/15/27		15,484
	16,000	Columbia Pipeline Group, Inc.,
		4.500%, 6/1/25		16,115
	24,000	Enbridge, Inc. (Canada), (3M LIBOR
		+0.700%), 3.488%, 6/15/20^(A)		23,917
	21,000	Energy Transfer Partners LP,
		4.950%, 6/15/28		20,547
	14,000	EOG Resources, Inc., 3.900%, 4/1/35		13,218
	25,000	Kinder Morgan Energy Partners LP,
		3.500%, 9/1/23		24,284
	23,000	Midcontinent Express Pipeline LLC,
		144a, 6.700%, 9/15/19		23,216
	16,000	Newfield Exploration Co.,
		5.375%, 1/1/26		15,680
	20,000	NGPL PipeCo LLC, 144a,
		7.768%, 12/15/37		22,800
	17,000	Petroleos Mexicanos (Mexico),
		4.500%, 1/23/26		14,654
	5,000	Petroleos Mexicanos (Mexico),
		5.350%, 2/12/28		4,363
	15,000	Petroleos Mexicanos (Mexico),
		6.350%, 2/12/48		12,000
	20,000	Sabine Pass Liquefaction LLC,
		5.000%, 3/15/27		20,067
	20,000	Shell International Finance BV
		(Netherlands), 1.875%, 5/10/21		19,480
	16,000	Valero Energy Corp., 4.350%, 6/1/28		15,851
				282,912

		Consumer Discretionary — 1.4%
	22,000	Aptiv PLC (Jersey), 3.150%, 11/19/20		21,780
	20,000	AutoNation, Inc., 5.500%, 2/1/20		20,436
	36,000	BMW US Capital LLC, 144a,
		3.100%, 4/12/21		35,654
	24,000	Booking Holdings, Inc., 3.600%, 6/1/26		23,317
	24,000	Dollar Tree, Inc., (3M LIBOR +0.700%),
		3.149%, 4/17/20^(A)		23,847
	7,000	Ford Motor Co., 4.750%, 1/15/43		5,398
	12,000	Ford Motor Credit Co. LLC,
		4.140%, 2/15/23		11,406
	32,000	General Motors Financial Co., Inc.,
		3.950%, 4/13/24		30,391
	9,000	General Motors Financial Co., Inc.,
		4.350%, 4/9/25		8,527
	20,000	Home Depot, Inc. (The),
		5.950%, 4/1/41		24,542
	24,000	Toyota Motor Credit Corp. MTN,
		2.950%, 4/13/21		24,004
				229,302

		Health Care — 1.4%
	7,000	Abbott Laboratories,
		3.750%, 11/30/26		6,913
	20,000	AbbVie, Inc., 4.450%, 5/14/46		17,495
	15,000	Allergan Funding SCS (Luxembourg),
		3.800%, 3/15/25		14,643
	18,000	Allergan Sales LLC, 144a,
		5.000%, 12/15/21		18,520
	17,000	Celgene Corp., 5.000%, 8/15/45		15,720
	16,000	Cigna Corp., 144a, 4.375%, 10/15/28		16,089
	23,000	CVS Health Corp., 4.300%, 3/25/28		22,485
	13,000	CVS Health Corp., 5.125%, 7/20/45		12,654
	17,000	Express Scripts Holding Co.,
		3.300%, 2/25/21		16,938
	30,000	Johnson & Johnson, 2.900%, 1/15/28		28,753
	14,000	Thermo Fisher Scientific, Inc.,
		3.600%, 8/15/21		14,041
	24,000	UnitedHealth Group, Inc.,
		2.375%, 10/15/22		23,263
	15,000	Zimmer Biomet Holdings, Inc.,
		3.150%, 4/1/22		14,666
				222,180

		Information Technology — 1.2%
	75,000	Apple, Inc., 2.750%, 1/13/25		72,319
	24,000	Apple, Inc., 4.650%, 2/23/46		25,405
	21,000	Dell International LLC / EMC Corp.,
		144a, 6.020%, 6/15/26		21,095
	11,000	Microsoft Corp., 3.500%, 2/12/35		10,498
	20,000	NXP BV / NXP Funding LLC
		(Netherlands), 144a, 5.350%, 3/1/26		20,340
	20,000	Oracle Corp., 2.650%, 7/15/26		18,535
	18,000	QUALCOMM, Inc., 3.450%, 5/20/25		17,318
				185,510

		Real Estate — 1.0%
	24,000	Boston Properties LP REIT,
		3.200%, 1/15/25		22,917
	22,000	Crown Castle International Corp.,
		3.650%, 9/1/27		20,395
	12,000	Kimco Realty Corp. REIT,
		3.125%, 6/1/23		11,606
	15,000	Mid-America Apartments LP,
		3.750%, 6/15/24		14,859
	17,000	Sabra Health Care LP REIT,
		5.125%, 8/15/26		15,755
	25,000	SL Green Operating Partnership LP,
		3.250%, 10/15/22		24,155
	14,000	Spirit Realty LP REIT, 4.450%, 9/15/26		13,450
	27,000	VEREIT Operating Partnership LP REIT,
		4.600%, 2/6/24		27,297
	16,000	Welltower, Inc. REIT, 4.250%, 4/1/26		15,972
				166,406

		Communication Services — 1.0%
	20,000	Activision Blizzard, Inc.,
		4.500%, 6/15/47		17,942

Touchstone Balanced Fund (Continued)

Principal			Market
Amount			Value

		Corporate Bonds — 13.6% (Continued)

		Communication Services — (Continued)
$	20,000	AT&T, Inc., 4.350%, 6/15/45	$	16,901
	21,000	Charter Communications Operating
		LLC / Charter Communications
		Operating Capital,
		6.484%, 10/23/45		21,587
	14,000	Comcast Corp., 4.000%, 3/1/48		12,757
	15,000	Comcast Corp., 4.150%, 10/15/28		15,232
	14,000	Cox Communications, Inc., 144a,
		3.350%, 9/15/26		12,916
	15,000	Interpublic Group of Cos., Inc. (The),
		3.750%, 10/1/21		15,094
	13,000	Qwest Corp., 6.750%, 12/1/21		13,292
	25,000	Verizon Communications, Inc.,
		5.012%, 4/15/49		24,910
	15,000	Warner Media LLC, 3.800%, 2/15/27		14,075
				164,706

		Industrials — 1.0%
	25,000	Burlington Northern Santa Fe LLC,
		5.750%, 5/1/40		29,277
	23,000	Eagle Materials, Inc., 4.500%, 8/1/26		22,836
	12,000	Embraer Netherlands Finance BV
		(Netherlands), 5.050%, 6/15/25		12,135
	7,000	Embraer Netherlands Finance BV
		(Netherlands), 5.400%, 2/1/27		7,228
	16,000	FedEx Corp., 5.100%, 1/15/44		15,751
	28,000	General Electric Co., 4.125%, 10/9/42		21,878
	25,000	Wabtec Corp., 4.700%, 9/15/28		23,446
	20,000	Westrock Co., 144a, 4.650%, 3/15/26		20,306
				152,857

		Consumer Staples — 0.9%
	26,000	Anheuser-Busch Cos. LLC /
		Anheuser-Busch InBev Worldwide,
		Inc., 144a, 4.900%, 2/1/46		24,112
	24,000	Cargill, Inc., 144a, 3.050%, 4/19/21		23,976
	20,000	Conagra Brands, Inc., 4.850%, 11/1/28		19,667
	16,000	General Mills, Inc., (3M LIBOR
		+1.010%), 3.459%, 10/17/23^(A)		15,628
	15,000	Kraft Heinz Foods Co., 6.875%, 1/26/39		16,736
	8,000	Kroger Co. (The), 5.000%, 4/15/42		7,615
	6,000	Moody's Corp., 2.750%, 12/15/21		5,884
	20,000	Reynolds American, Inc.,
		4.450%, 6/12/25		19,285
	10,000	Tyson Foods, Inc., 3.900%, 9/28/23		9,986
				142,889

		Utilities — 0.7%
	15,000	Duke Energy Progress LLC,
		4.150%, 12/1/44		14,562
	17,000	Fortis, Inc. (Canada), 3.055%, 10/4/26		15,519
	14,000	NextEra Energy Capital Holdings, Inc.,
		2.800%, 1/15/23		13,510

16,000	Oncor Electric Delivery Co. LLC,
	3.800%, 9/30/47		15,131
7,000	Pacific Gas & Electric Co., 144a,
	4.650%, 8/1/28		6,417
27,000	PacifiCorp., 5.750%, 4/1/37		32,232
8,000	WEC Energy Group, Inc., (3M LIBOR
	+2.113%), 4.729%, 5/15/67^(A)		6,527
			103,898

	Materials — 0.2%
22,000	DowDuPont, Inc., 4.493%, 11/15/25		22,651
19,000	Sherwin-Williams Co. (The),
	4.500%, 6/1/47		17,134
			39,785
	Total Corporate Bonds	$	2,171,937

	U.S. Treasury Obligations — 10.4%
260,000	U.S. Treasury Inflation Indexed Bonds,
	1.000%, 2/15/48		252,655
315,000	U.S. Treasury Inflation Indexed Notes,
	0.750%, 7/15/28		310,597
310,000	U.S. Treasury Note, 2.500%, 5/31/20		309,722
633,000	U.S. Treasury Note, 2.500%, 3/31/23		633,074
150,000	U.S. Treasury Note, 2.875%, 8/15/28		152,320
	Total U.S. Treasury Obligations	$	1,658,368

	U.S. Government Mortgage-Backed Obligations — 7.7%
269,212	FHLMC, Pool #G05624, 4.500%, 9/1/39		280,752
173,321	FHLMC, Pool #Q29260,
	4.000%, 10/1/44		177,152
106,918	FNMA, Pool #725423, 5.500%, 5/1/34		115,125
102,569	FNMA, Pool #725610, 5.500%, 7/1/34		110,469
25,969	FNMA, Pool #890310, 4.500%, 12/1/40		27,201
103,698	FNMA, Pool #AD9193, 5.000%, 9/1/40		110,074
404,893	FNMA, Pool #AL5718, 3.500%, 9/1/44		406,799
	Total U.S. Government Mortgage-Backed Obligations	$	1,227,572

Shares

	Exchange-Traded Fund — 1.8%
2,738	iShares JP Morgan USD Emerging
	Markets Bond ETF	$	284,506

	Principal
	Amount

		Sovereign Bonds — 0.2%
$	20,000	Province of Alberta Canada, 2.200%,
		7/26/22		19,552
	22,000	Province of Ontario Canada, 1.875%,
		5/21/20		21,750
		Total Sovereign Bonds	$	41,302

Touchstone Balanced Fund (Continued)

			Market
Shares			Value

		Preferred Stock — 0.1%

		Utilities — 0.1%
	817	Integrys Holding, Inc., 6.000%, 8/1/73	$	19,322

		Short-Term Investment Fund — 1.2%
	196,249	Dreyfus Government Cash
		Management, Institutional Shares,
		2.29%^∞Ω	$	196,249

		Total Investment Securities —100.0%
		(Cost $15,459,158)	$	15,976,282

		Liabilities in Excess of Other Assets — 0.0%		(5,595	)
		Net Assets — 100.0%	$	15,970,687

^(A)

Variable rate security - Rate reflected is the rate in effect as of December 31, 2018.

Non-income producing security.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ADR - American Depositary Receipt

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

USD - United States Dollar

144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2018, these securities were valued at $261,741 or 1.6% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Assets:
Common Stocks	$	10,377,026	$	—	$	—	$	10,377,026
Corporate Bonds		—		2,171,937		—		2,171,937
U.S. Treasury Obligations		—		1,658,368		—		1,658,368
U.S. Government Mortgage-Backed Obligations		—		1,227,572		—		1,227,572
Exchange-Traded Fund		284,506		—		—		284,506
Sovereign Bonds		—		41,302		—		41,302
Preferred Stock		19,322		—		—		19,322
Short-Term Investment Fund		196,249		—		—		196,249
Total	$	10,877,103	$	5,099,179	$	—	$	15,976,282

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Bond Fund – December 31, 2018

Principal			Market
Amount			Value

		Corporate Bonds — 42.5%

		Financials — 11.7%
$	29,000	Allstate Corp. (The), Ser B,
		5.750%, 8/15/53	$	28,275
	183,000	American Express Co.,
		3.000%, 10/30/24		175,120
	150,000	Bank of America Corp.,
		3.705%, 4/24/28		143,890
	221,000	Bank of America Corp. MTN,
		4.000%, 1/22/25		215,286
	170,000	Bank of Montreal (Canada),
		3.803%, 12/15/32		157,420
	170,000	Bank of New York Mellon Corp. (The)
		MTN, 2.950%, 1/29/23		167,324
	175,000	Bank of Nova Scotia (The), (Canada),
		(3M LIBOR +0.620%),
		3.424%, 9/19/22^(A)		173,222
	200,000	Barclays PLC (United Kingdom),
		4.610%, 2/15/23		198,312
	168,000	BB&T Corp. MTN, 2.850%, 10/26/24		161,409
	139,000	Citigroup, Inc., 3.300%, 4/27/25		132,002
	85,000	Citigroup, Inc., 4.750%, 5/18/46		78,579
	142,000	Fifth Third Bancorp, 2.875%, 7/27/20		141,181
	200,000	GE Capital International Funding Co.
		Unlimited Co. (Ireland),
		4.418%, 11/15/35		167,513
	400,000	Goldman Sachs Group, Inc. (The), (3M
		LIBOR +1.000%), 3.487%, 7/24/23^(A)		388,675
	99,000	Goldman Sachs Group, Inc. (The),
		3.691%, 6/5/28		92,008
	147,000	Goldman Sachs Group, Inc. (The),
		5.250%, 7/27/21		152,600
	238,000	Huntington Bancshares, Inc./OH,
		4.000%, 5/15/25		239,243
	105,000	JPMorgan Chase & Co., (3M LIBOR
		+0.730%), 3.207%, 4/23/24^(A)		101,445
	112,000	JPMorgan Chase & Co.,
		3.250%, 9/23/22		111,111
	181,000	JPMorgan Chase & Co.,
		3.509%, 1/23/29		171,390
	200,000	Lloyds Banking Group PLC (United
		Kingdom), 3.574%, 11/7/28		177,905
	120,000	Morgan Stanley, 3.737%, 4/24/24		118,978
	199,000	Morgan Stanley, 3.950%, 4/23/27		187,616
	125,000	Northwestern Mutual Life Insurance
		Co. (The), 144a, 3.850%, 9/30/47		113,194
	250,000	PNC Bank NA, 2.700%, 11/1/22		242,938
	140,000	Prudential Financial, Inc.,
		5.625%, 6/15/43		137,106
	178,000	Royal Bank of Canada (Canada) MTN,
		3.200%, 4/30/21		177,982
	160,000	SunTrust Banks, Inc., 4.000%, 5/1/25		160,514
	128,000	Visa, Inc., 4.150%, 12/14/35		132,379
	117,000	Wells Fargo & Co., 2.100%, 7/26/21		113,347
	113,000	Wells Fargo & Co., 4.125%, 8/15/23		113,667
				4,871,631

		Energy — 4.4%
	177,000	Boardwalk Pipelines LP,
		4.450%, 7/15/27		163,425
	143,000	Cenovus Energy, Inc. (Canada),
		4.250%, 4/15/27		130,248
	154,000	Cheniere Corpus Christi Holdings LLC,
		7.000%, 6/30/24		162,470
	127,000	Columbia Pipeline Group, Inc.,
		4.500%, 6/1/25		127,915
	172,000	Enbridge, Inc. (Canada), (3M LIBOR
		+0.700%), 3.488%, 6/15/20^(A)		171,405
	162,000	Energy Transfer Partners LP,
		4.950%, 6/15/28		158,503
	105,000	EOG Resources, Inc., 3.900%, 4/1/35		99,131
	185,000	Kinder Morgan Energy Partners LP,
		3.500%, 9/1/23		179,704
	120,000	Newfield Exploration Co.,
		5.375%, 1/1/26		117,600
	128,000	Petroleos Mexicanos (Mexico),
		4.500%, 1/23/26		110,336
	165,000	Petroleos Mexicanos (Mexico),
		5.350%, 2/12/28		143,962
	166,000	Shell International Finance BV
		(Netherlands), 1.875%, 5/10/21		161,682
	128,000	Valero Energy Corp., 4.350%, 6/1/28		126,805
				1,853,186

		Communication Services — 3.9%
	148,000	Activision Blizzard, Inc.,
		4.500%, 6/15/47		132,769
	60,000	AT&T, Inc., 3.950%, 1/15/25		58,671
	37,000	AT&T, Inc., 4.350%, 6/15/45		31,267
	116,000	AT&T, Inc., 4.500%, 5/15/35		104,145
	167,000	Charter Communications Operating
		LLC / Charter Communications
		Operating Capital,
		6.484%, 10/23/45		171,666
	94,000	Comcast Corp., 4.000%, 3/1/48		85,655
	125,000	Comcast Corp., 4.150%, 10/15/28		126,929
	110,000	Cox Communications, Inc., 144a,
		3.350%, 9/15/26		101,486
	112,000	Interpublic Group of Cos., Inc. (The),
		3.750%, 10/1/21		112,699
	106,000	Qwest Corp., 6.750%, 12/1/21		108,380
	200,000	Telecom Italia SpA/Milano (Italy),
		144a, 5.303%, 5/30/24		190,000
	62,000	Verizon Communications, Inc.,
		4.672%, 3/15/55		56,935
	125,000	Verizon Communications, Inc.,
		5.012%, 4/15/49		124,550
	260,000	Warner Media LLC, 3.800%, 2/15/27		243,959
				1,649,111

		Health Care — 3.8%
	49,000	Abbott Laboratories,
		3.750%, 11/30/26		48,392
	155,000	AbbVie, Inc., 4.450%, 5/14/46		135,584

Touchstone Bond Fund (Continued)

Principal			Market
Amount			Value

		Corporate Bonds — 42.5% (Continued)

		Health Care — (Continued)
$	108,000	Allergan Funding SCS (Luxembourg),
		3.800%, 3/15/25	$	105,432
	100,000	Allergan Sales LLC, 144a,
		5.000%, 12/15/21		102,890
	131,000	Celgene Corp., 5.000%, 8/15/45		121,133
	128,000	Cigna Corp., 144a, 4.375%, 10/15/28		128,714
	120,000	CVS Health Corp., 4.300%, 3/25/28		117,313
	100,000	CVS Health Corp., 5.125%, 7/20/45		97,341
	136,000	Express Scripts Holding Co.,
		3.300%, 2/25/21		135,501
	39,000	Medtronic Global Holdings SCA
		(Luxembourg), 3.350%, 4/1/27		38,200
	169,000	Shire Acquisitions Investments Ireland
		DAC (Ireland), 2.400%, 9/23/21		163,420
	110,000	Thermo Fisher Scientific, Inc.,
		3.600%, 8/15/21		110,324
	182,000	UnitedHealth Group, Inc.,
		2.375%, 10/15/22		176,414
	118,000	Zimmer Biomet Holdings, Inc.,
		3.150%, 4/1/22		115,370
				1,596,028

		Consumer Discretionary — 3.8%
	173,000	Aptiv PLC (Jersey), 3.150%, 11/19/20		171,270
	270,000	BMW US Capital LLC, 144a,
		3.100%, 4/12/21		267,405
	178,000	Booking Holdings, Inc., 3.600%, 6/1/26		172,935
	178,000	Dollar Tree, Inc., (3M LIBOR +0.700%),
		3.149%, 4/17/20^(A)		176,865
	47,000	Ford Motor Co., 4.750%, 1/15/43		36,246
	89,000	Ford Motor Credit Co. LLC,
		4.140%, 2/15/23		84,595
	158,000	General Motors Financial Co., Inc.,
		3.200%, 7/13/20		156,039
	90,000	General Motors Financial Co., Inc.,
		3.950%, 4/13/24		85,474
	98,000	General Motors Financial Co., Inc.,
		4.350%, 4/9/25		92,851
	137,000	Home Depot, Inc. (The),
		5.950%, 4/1/41		168,114
	178,000	Toyota Motor Credit Corp. MTN,
		2.950%, 4/13/21		178,027
				1,589,821

		Consumer Staples — 3.7%
	250,000	Anheuser-Busch Cos. LLC /
		Anheuser-Busch InBev Worldwide,
		Inc., 144a, 4.900%, 2/1/46		231,846
	180,000	Cargill, Inc., 144a, 3.050%, 4/19/21		179,822
	136,000	Conagra Brands, Inc., 4.850%, 11/1/28		133,739
	128,000	General Mills, Inc., (3M LIBOR
		+1.010%), 3.459%, 10/17/23^(A)		125,026
	160,000	Grupo Bimbo SAB de CV (Mexico),
		144a, 4.500%, 1/25/22		162,960
	203,000	Imperial Brands Finance PLC (United
		Kingdom), 144a, 4.250%, 7/21/25		199,667
	115,000	Kraft Heinz Foods Co., 6.875%, 1/26/39		128,309
	155,000	Moody's Corp., 2.750%, 12/15/21		152,008
	149,000	Reynolds American, Inc.,
		4.450%, 6/12/25		143,671
	82,000	Tyson Foods, Inc., 3.900%, 9/28/23		81,886
				1,538,934

		Real Estate — 3.1%
	166,000	Boston Properties LP REIT,
		3.200%, 1/15/25		158,509
	167,000	Crown Castle International Corp. REIT,
		3.650%, 9/1/27		154,816
	90,000	Kimco Realty Corp. REIT,
		3.125%, 6/1/23		87,048
	120,000	Mid-America Apartments LP REIT,
		3.750%, 6/15/24		118,868
	152,000	Sabra Health Care LP REIT,
		5.125%, 8/15/26		140,869
	186,000	SL Green Operating Partnership LP
		REIT, 3.250%, 10/15/22		179,713
	101,000	Spirit Realty LP REIT, 4.450%, 9/15/26		97,028
	204,000	VEREIT Operating Partnership LP REIT,
		4.600%, 2/6/24		206,244
	130,000	Welltower, Inc. REIT, 4.250%, 4/1/26		129,769
				1,272,864

		Industrials — 2.5%
	200,000	CRH America Finance, Inc., 144a,
		4.500%, 4/4/48		177,774
	174,000	Eagle Materials, Inc., 4.500%, 8/1/26		172,757
	72,000	Embraer Netherlands Finance BV
		(Netherlands), 5.050%, 6/15/25		72,811
	71,000	Embraer Netherlands Finance BV
		(Netherlands), 5.400%, 2/1/27		73,308
	119,000	Roper Technologies, Inc.,
		3.000%, 12/15/20		118,227
	138,000	Vulcan Materials Co., 4.500%, 4/1/25		137,086
	165,000	Wabtec Corp., 4.700%, 9/15/28		154,747
	152,000	Westrock Co., 144a, 4.650%, 3/15/26		154,323
				1,061,033

		Information Technology — 2.4%
	148,000	Apple, Inc., 2.750%, 1/13/25		142,710
	185,000	Apple, Inc., 4.650%, 2/23/46		195,830
	162,000	Dell International LLC / EMC Corp.,
		144a, 6.020%, 6/15/26		162,733
	88,000	Microsoft Corp., 3.500%, 2/12/35		83,988
	158,000	NXP BV / NXP Funding LLC
		(Netherlands), 144a, 5.350%, 3/1/26		160,686
	142,000	Oracle Corp., 2.650%, 7/15/26		131,600
	140,000	QUALCOMM, Inc., 3.450%, 5/20/25		134,699
				1,012,246

Touchstone Bond Fund (Continued)

Principal			Market
Amount			Value

		Corporate Bonds — 42.5% (Continued)

		Materials — 1.8%
$	200,000	Braskem America Finance Co., 144a,
		7.125%, 7/22/41	$	216,900
	195,000	DowDuPont, Inc., 4.493%, 11/15/25		200,767
	146,000	Sherwin-Williams Co. (The),
		4.500%, 6/1/47		131,658
	200,000	Suzano Austria GmbH (Austria), 144a,
		5.750%, 7/14/26		204,000
				753,325

		Utilities — 1.4%
	54,000	DTE Energy Co., Series D,
		3.700%, 8/1/23		53,622
	101,000	Duke Energy Progress LLC,
		4.150%, 12/1/44		98,052
	136,000	Fortis, Inc. (Canada), 3.055%, 10/4/26		124,153
	102,000	NextEra Energy Capital Holdings, Inc.,
		2.800%, 1/15/23		98,434
	123,000	Oncor Electric Delivery Co. LLC,
		3.800%, 9/30/47		116,317
	54,000	Pacific Gas & Electric Co., 144a,
		4.650%, 8/1/28		49,505
	62,000	WEC Energy Group, Inc., (3M LIBOR
		+2.113%), 4.729%, 5/15/67^(A)		50,586
				590,669
		Total Corporate Bonds	$	17,788,848

		U.S. Government Mortgage-Backed Obligations — 20.1%
	504,772	FHLMC, Pool #G05624, 4.500%, 9/1/39		526,409
	675,148	FHLMC, Pool #Q29056,
		4.000%, 10/1/44		690,046
	284,053	FHLMC, Pool #Q29260,
		4.000%, 10/1/44		290,333
	402,351	FNMA, Pool #725423, 5.500%, 5/1/34		433,233
	379,885	FNMA, Pool #725610, 5.500%, 7/1/34		409,145
	345,660	FNMA, Pool #AD9193, 5.000%, 9/1/40		366,912
	501,584	FNMA, Pool #AL5718, 3.500%, 9/1/44		503,945
	503,582	FNMA, Pool #AR9195, 3.000%, 3/1/43		495,163
	603,791	FNMA, Pool #AS4707, 3.500%, 4/1/45		606,074
	755,981	FNMA, Pool #AS7234, 3.000%, 5/1/46		737,295
	1,306,362	FNMA, Pool #AS8703, 2.500%, 2/1/32		1,276,292
	551,659	FNMA, Pool #AT2016, 3.000%, 4/1/43		542,171
	203,180	FNMA, Pool #AZ7347, 3.000%, 11/1/45		198,661
	688,619	FNMA, Pool #BC1158, 3.500%, 2/1/46		690,760
	591,582	GNMA, Pool #5175, 4.500%, 9/20/41		620,656
	25,966	GNMA, Pool #679437,
		6.000%, 11/15/22		25,964
		Total U.S. Government Mortgage-Backed Obligations	$	8,413,059

		U.S. Treasury Obligations — 16.7%
	1,995,000	U.S. Treasury Inflation Indexed Bonds,
		1.000%, 2/15/48		1,938,644
	1,500,000	U.S. Treasury Inflation Indexed Notes,
		0.750%, 7/15/28		1,479,033
	2,060,000	U.S. Treasury Note, 2.500%, 5/31/20		2,058,149
	1,249,000	U.S. Treasury Note, 2.500%, 3/31/23		1,249,146
	265,000	U.S. Treasury Note, 2.875%, 8/15/28		269,099
		Total U.S. Treasury Obligations	$	6,994,071

Shares

	Exchange-Traded Fund — 5.0%
20,047	iShares JP Morgan USD Emerging
	Markets Bond ETF	$	2,083,084

	Principal
	Amount

		Non-Agency Collateralized Mortgage Obligations — 4.5%
$	518,348	Agate Bay Mortgage Trust, Ser 2015-7,
		Class B1, 144a,
		3.766%, 10/25/45^(A)(B)		522,718
	517,487	CSMC Trust, Ser 2015-1, Class B3, 144a,
		3.941%, 1/25/45^(A)(B)		506,096
	349,030	CSMC Trust, Ser 2015-WIN1, Class B3,
		144a, 3.858%, 12/25/44^(A)(B)		347,492
	505,488	PMT Loan Trust, Ser 2013-J1, Class A11,
		144a, 3.500%, 9/25/43^(A)(B)		500,114
		Total Non-Agency Collateralized Mortgage Obligations	$	1,876,420

		Agency Collateralized Mortgage Obligation — 3.0%
	1,181,402	FHLMC REMIC, Ser 3859 Class JB,
		5.000%, 5/15/41	$	1,251,181

		Asset-Backed Securities — 2.5%
	550,000	Hertz Vehicle Financing II LP, Ser
		2016-4A, Class A, 144a,
		2.650%, 7/25/22		538,486
	519,750	Wendys Funding LLC, Ser 2018-1A,
		Class A2I, 144a, 3.573%, 3/15/48		498,097
		Total Asset-Backed Securities	$	1,036,583

		Sovereign Bonds — 1.3%
	200,000	Mexico Government International
		Bond, 4.350%, 1/15/47		171,400
	147,000	Province of Alberta Canada, 2.200%,
		7/26/22		143,708
	166,000	Province of Ontario Canada, 1.875%,
		5/21/20		164,115
	57,000	Uruguay Government International
		Bond, 4.975%, 4/20/55		54,208
		Total Sovereign Bonds	$	533,431

		Commercial Mortgage-Backed Security — 1.3%
	550,000	GS Mortgage Securities Trust, Ser
		2017-FARM, Class B, 144a,
		3.541%, 1/10/43^(A)(B)	$	533,159

Touchstone Bond Fund (Continued)

			Market
Shares			Value

		Preferred Stock — 0.4%

		Utilities — 0.4%
	6,575	Integrys Holding, Inc., 6.000%, 8/1/73	$	155,499

		Short-Term Investment Fund — 2.3%
	972,143	Dreyfus Government Cash
		Management, Institutional Shares,
		2.29%^∞Ω	$	972,143
		Total Investment Securities —99.6%
		(Cost $42,581,176)	$	41,637,478

		Other Assets in
		Excess of Liabilities — 0.4%		170,662
		Net Assets — 100.0%	$	41,808,140

^(A)

Variable rate security - Rate reflected is the rate in effect as of December 31, 2018.

^(B)

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

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

USD - United States Dollar

144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144a of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At December 31, 2018, these securities were valued at $6,250,068 or 14.9% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

Touchstone Bond Fund (Continued)

Other Information:

	Valuation inputs at Reporting Date:
Description		Level 1		Level 2		Level 3		Total
Assets:
Corporate Bonds		$	—	$	17,788,848	$	—	$	17,788,848
U.S. Government Mortgage-Backed Obligations			—		8,413,059		—		8,413,059
U.S. Treasury Obligations			—		6,994,071		—		6,994,071
Exchange-Traded Fund			2,083,084		—		—		2,083,084
Non-Agency Collateralized Mortgage Obligations			—		1,876,420		—		1,876,420
Agency Collateralized Mortgage Obligation			—		1,251,181		—		1,251,181
Asset-Backed Securities			—		1,036,583		—		1,036,583
Sovereign Bonds			—		533,431		—		533,431
Commercial Mortgage-Backed Security			—		533,159		—		533,159
Preferred Stock			155,499		—		—		155,499
Short-Term Investment Fund			972,143		—		—		972,143
Total Assets		$	3,210,726	$	38,426,752	$	—	$	41,637,478

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Common Stock Fund– December 31, 2018

			Market
	Shares		Value

Common Stocks — 99.2%

Information Technology — 18.7%
Apple, Inc.		30,824	$	4,862,178
Avnet, Inc.		57,279		2,067,772
International Business Machines Corp.		16,156		1,836,452
Microsoft Corp.		63,301		6,429,482
Oracle Corp.		83,358		3,763,614
salesforce.com, Inc.*		31,743		4,347,839
				23,307,337

Communication Services — 18.3%
Alphabet, Inc. - Class C*		6,631		6,867,130
AT&T, Inc.		74,611		2,129,398
Baidu, Inc. (China) ADR*		11,052		1,752,847
Charter Communications, Inc. - Class A*		8,604		2,451,882
Comcast Corp. - Class A		78,967		2,688,826
Facebook, Inc. - Class A*		33,041		4,331,345
Twenty-First Century Fox, Inc. - Class A		54,960		2,644,675
				22,866,103

Financials — 18.0%
Bank of America Corp.		122,226		3,011,649
Berkshire Hathaway, Inc. - Class B*		63,021		12,867,628
Brookfield Asset Management, Inc. (Canada) - Class A		58,560		2,245,776
Goldman Sachs Group, Inc. (The)		14,583		2,436,090
Signature Bank/NewYork NY		18,654		1,917,818
				22,478,961

Health Care — 13.5%
AmerisourceBergen Corp.		35,797		2,663,297
Biogen, Inc.*		10,516		3,164,475
Bristol-Myers Squibb Co.		59,188		3,076,592
Johnson & Johnson		26,239		3,386,143
Novartis AG (Switzerland) ADR		53,993		4,633,139
				16,923,646

Consumer Discretionary — 12.2%
Alibaba Group Holding Ltd. (China)
ADR*		4,221		578,572
Amazon.com, Inc.*		4,009		6,021,398
Booking Holdings, Inc.*		698		1,202,249
Carnival Corp.		48,403		2,386,268
JD.com, Inc. (China) ADR*		34,673		725,706
Starbucks Corp.		39,012		2,512,373
Yum China Holdings, Inc. (China)		53,213		1,784,232
				15,210,798

Industrials — 6.4%
Deere & Co.		9,888		1,474,993
FedEx Corp.		6,483		1,045,902
General Electric Co.		85,357		646,152
Stericycle, Inc.*		16,693		612,466
Union Pacific Corp.		15,365		2,123,904
United Technologies Corp.		19,335		2,058,791
				7,962,208

Real Estate — 5.2%
Jones Lang LaSalle, Inc.		21,276		2,693,542
Simon Property Group, Inc. REIT		22,774		3,825,804
				6,519,346

Energy — 3.7%
Exxon Mobil Corp.		32,202		2,195,854
Halliburton Co.		40,910		1,087,388
Schlumberger Ltd.		36,327		1,310,678
				4,593,920

Consumer Staples — 3.2%
JM Smucker Co. (The)		5,060		473,059
Monster Beverage Corp.*		37,858		1,863,371
Unilever NV (United Kingdom)		30,902		1,662,528
				3,998,958
Total Common Stocks			$	123,861,277

Short-Term Investment Fund — 0.8%
Dreyfus Government Cash
Management, Institutional Shares,
2.29%^∞Ω		977,945	$	977,945

Total Investment Securities —100.0%
(Cost $115,035,292)			$	124,839,222

Liabilities in Excess of Other Assets — (0.0%)				(42,898	)

Net Assets — 100.0%			$	124,796,324

Non-income producing security.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

Other Information:

Touchstone Common Stock Fund(Continued)

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	123,861,277	$	—	$	—	$	123,861,277
Short-Term Investment Fund		977,945		—		—		977,945
Total	$	124,839,222	$	—	$	—	$	124,839,222

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Focused Fund – December 31, 2018

			Market
	Shares		Value

Common Stocks — 97.5%

Information Technology — 18.9%
Apple, Inc.		12,655	$	1,996,200
Avnet, Inc.		22,760		821,636
International Business Machines Corp.		7,775		883,784
Microsoft Corp.		26,540		2,695,668
Oracle Corp.		33,035		1,491,530
salesforce.com, Inc.*		12,910		1,768,283
				9,657,101

Financials — 16.8%
Bank of America Corp.		53,518		1,318,683
Berkshire Hathaway, Inc. - Class B*		26,428		5,396,069
Goldman Sachs Group, Inc. (The)		6,639		1,109,045
Signature Bank/NewYork NY		7,339		754,523
				8,578,320

Health Care — 15.8%
AmerisourceBergen Corp.		14,223		1,058,191
Biogen, Inc.*		4,793		1,442,310
Bio-Rad Laboratories, Inc. - Class A*		2,671		620,260
Bristol-Myers Squibb Co.		24,524		1,274,757
Johnson & Johnson		11,880		1,533,114
Novartis AG (Switzerland) ADR		25,012		2,146,280
				8,074,912

Communication Services — 15.7%
Alphabet, Inc. - Class C*		2,327		2,409,864
AT&T, Inc.		31,148		888,964
Baidu, Inc. (China) ADR*		4,428		702,281
Comcast Corp. - Class A		36,862		1,255,151
Facebook, Inc. - Class A*		11,553		1,514,483
Twenty-First Century Fox, Inc. - Class A		26,440		1,272,293
				8,043,036

Consumer Discretionary — 12.1%
Alibaba Group Holding Ltd. (China)
ADR*		1,703		233,430
Amazon.com, Inc.*		1,661		2,494,772
Booking Holdings, Inc.*		281		484,000
Carnival Corp.		20,161		993,937
JD.com, Inc. (China) ADR*		13,015		272,404
Starbucks Corp.		14,801		953,184
Yum China Holdings, Inc. (China)		21,537		722,136
				6,153,863

Industrials — 6.4%
Deere & Co.		4,008		597,873
FedEx Corp.		2,651		427,686
General Electric Co.		37,020		280,241
Stericycle, Inc.*		6,825		250,409
Union Pacific Corp.		6,670		921,994
United Technologies Corp.		7,518		800,517
				3,278,720

Real Estate — 5.0%
Jones Lang LaSalle, Inc.		8,706		1,102,180
Simon Property Group, Inc. REIT		8,729		1,466,385
				2,568,565

Energy — 3.5%
Exxon Mobil Corp.		11,768		802,460
Halliburton Co.		15,184		403,591
Schlumberger Ltd.		16,338		589,475
				1,795,526

Consumer Staples — 3.3%
JM Smucker Co. (The)		1,771		165,571
Monster Beverage Corp.*		15,206		748,439
Unilever NV (United Kingdom)		14,039		755,298
				1,669,308
Total Common Stocks			$	49,819,351

Short-Term Investment Fund — 2.6%
Dreyfus Government Cash Management, Institutional Shares,2.29%^∞Ω		1,314,717	$	1,314,717
Total Investment Securities —100.1%
(Cost $44,492,800)			$	51,134,068

Liabilities in Excess of Other Assets — (0.1%)				(74,550	)

Net Assets — 100.0%			$	51,059,518

Non-income producing security.

^∞

Open-End Fund.

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

Touchstone Focused Fund (Continued)

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	49,819,351	$	—	$	—	$	49,819,351
Short-Term Investment Fund		1,314,717		—		—		1,314,717
Total	$	51,134,068	$	—	$	—	$	51,134,068

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Large Cap Core Equity Fund – December 31, 2018

			Market
	Shares		Value

Common Stocks — 98.8%

Financials — 24.8%
Alleghany Corp.		1,432	$	892,594
Bank of America Corp.		16,204		399,267
Berkshire Hathaway, Inc. - Class B*		9,979		2,037,512
BlackRock, Inc.		2,252		884,631
Progressive Corp. (The)		23,556		1,421,133
Wells Fargo & Co.		16,442		757,647
				6,392,784

Consumer Discretionary — 20.1%
CarMax, Inc.*		15,777		989,691
Carnival Corp.		19,104		941,827
Dollar Tree, Inc.*		13,050		1,178,676
Home Depot, Inc. (The)		4,737		813,911
Lowe's Cos., Inc.		4,097		378,399
O'Reilly Automotive, Inc.*		2,553		879,075
				5,181,579

Information Technology — 13.5%
Apple, Inc.		8,298		1,308,927
Cisco Systems, Inc.		18,777		813,607
Visa, Inc. - Class A		10,239		1,350,934
				3,473,468

Industrials — 13.0%
Deere & Co.		2,553		380,831
FedEx Corp.		3,361		542,230
General Dynamics Corp.		4,122		648,020
Norfolk Southern Corp.		7,311		1,093,287
Southwest Airlines Co.		14,896		692,366
				3,356,734

Materials — 8.4%
Albemarle Corp.		8,421		649,006
Martin Marietta Materials, Inc.		4,164		715,667
NewMarket Corp.		1,948		802,751
				2,167,424

Consumer Staples — 8.0%
Altria Group, Inc.		13,717		677,483
Coca-Cola Co. (The)		10,863		514,363
Nestle SA (Switzerland) ADR		10,720		867,891
				2,059,737

Communication Services — 7.0%
Alphabet, Inc. - Class C*		1,298		1,344,222
Verizon Communications, Inc.		8,334		468,537
				1,812,759

Energy — 2.1%
Chevron Corp.		5,083		552,980

Health Care — 1.9%
Bristol-Myers Squibb Co.		9,622		500,152
Total Common Stocks			$	25,497,617

Short-Term Investment Fund — 1.4%
Dreyfus Government Cash
Management, Institutional Shares,
2.29%^∞Ω		353,936	$	353,936

Total Investment Securities —100.2%
(Cost $23,216,653)			$	25,851,553

Liabilities in Excess of Other Assets — (0.2%)				(41,327	)

Net Assets — 100.0%			$	25,810,226

Non-income producing security.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ADR - American Depositary Receipt

Other Information:

	Valuation Inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	25,497,617	$	—	$	—	$	25,497,617
Short-Term Investment Fund		353,936		—		—		353,936
Total	$	25,851,553	$	—	$	—	$	25,851,553

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Small Company Fund– December 31, 2018

			Market
	Shares		Value

Common Stocks — 96.7%

Information Technology — 24.1%
8x8, Inc.*		48,000	$	865,920
Aspen Technology, Inc.*		10,723		881,216
Avaya Holdings Corp.*		79,065		1,151,186
Bottomline Technologies (de), Inc.*		15,218		730,464
Carbonite, Inc.*		34,638		874,956
Cision Ltd.*		66,111		773,499
CommVault Systems, Inc.*		14,610		863,305
j2 Global, Inc.		12,485		866,209
MAXIMUS, Inc.		13,187		858,342
NetScout Systems, Inc.*		32,683		772,299
Nice Ltd. (Israel) ADR*		8,268		894,680
Nuance Communications, Inc.*		65,498		866,539
ON Semiconductor Corp.*		35,141		580,178
Open Text Corp. (Canada)		20,214		658,976
Plantronics, Inc.		24,987		827,070
Verint Systems, Inc.*		34,600		1,463,926
				13,928,765

Industrials — 22.5%
Clean Harbors, Inc.*		17,500		863,625
Crane Co.		16,682		1,204,107
EnerSys		16,633		1,290,887
Genesee & Wyoming, Inc. - Class A*		10,957		811,037
Hillenbrand, Inc.		22,243		843,677
ITT, Inc.		24,248		1,170,451
Knight-Swift Transportation
Holdings, Inc.		31,081		779,201
Mobile Mini, Inc.		25,685		815,499
Quanta Services, Inc.		46,933		1,412,683
Regal Beloit Corp.		20,907		1,464,535
SkyWest, Inc.		25,800		1,147,326
Woodward, Inc.		16,761		1,245,175
				13,048,203

Health Care — 19.8%
Allscripts Healthcare Solutions, Inc.*		152,000		1,465,280
AngioDynamics, Inc.*		40,599		817,258
Bio-Rad Laboratories, Inc. - Class A*		2,996		695,731
Bio-Techne Corp.		5,036		728,810
Diplomat Pharmacy, Inc.*		1		13
Encompass Health Corp.		11,983		739,351
Globus Medical, Inc. - Class A*		20,068		868,543
Haemonetics Corp.*		8,640		864,432
MEDNAX, Inc.*		25,988		857,604
NuVasive, Inc.*		23,953		1,187,111
Omnicell, Inc.*		12,531		767,398
Orthofix Medical, Inc.*		16,624		872,594
Tactile Systems Technology, Inc.*		16,694		760,412
Tivity Health, Inc.*		32,950		817,490
				11,442,027

Consumer Discretionary — 13.8%
Aaron's, Inc.		20,962		881,452
Adtalem Global Education, Inc.*		18,185		860,514
Bloomin' Brands, Inc.		68,772		1,230,331
Brunswick Corp.		4,300		199,735
Dave & Buster's Entertainment, Inc.		18,781		836,881
Dick's Sporting Goods, Inc.		27,697		864,146
G-III Apparel Group Ltd.*		6,000		167,340
Movado Group, Inc.		6,000		189,720
Oxford Industries, Inc.		2,500		177,600
Steven Madden Ltd.		6,100		184,586
Texas Roadhouse, Inc.		13,978		834,487
TopBuild Corp.*		30,800		1,386,000
Williams-Sonoma, Inc.		3,800		191,710
				8,004,502

Financials — 10.1%
Chemical Financial Corp.		31,600		1,156,876
Glacier Bancorp, Inc.		14,992		593,983
Heartland Financial USA, Inc.		19,026		836,193
Webster Financial Corp.		24,173		1,191,487
Western Alliance Bancorp*		29,877		1,179,843
WSFS Financial Corp.		22,800		864,348
				5,822,730

Communication Services — 2.9%
Care.com, Inc.*		20,000		386,200
Cogent Communications Holdings, Inc.		19,280		871,649
QuinStreet, Inc.*		26,000		421,980
				1,679,829

Consumer Staples — 2.1%
Sprouts Farmers Market, Inc.*		51,500		1,210,765

Real Estate — 1.4%
Corporate Office Properties Trust REIT		38,945		819,013
Total Common Stocks			$	55,955,834

Short-Term Investment Fund — 3.7%
Dreyfus Government Cash Management, Institutional Shares,2.29%^∞Ω		2,159,365	$	2,159,366

Total Investment Securities —100.4%
(Cost $53,872,972)			$	58,115,200

Liabilities in Excess of Other Assets — (0.4%)				(231,002	)

Net Assets — 100.0%			$	57,884,198

Non-income producing security.

^∞

Open-End Fund.

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

Touchstone Small Company Fund(Continued)

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	55,955,834	$	—	$	—	$	55,955,834
Short-Term Investment Fund		2,159,366		—		—		2,159,366
Total	$	58,115,200	$	—	$	—	$	58,115,200

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Aggressive ETF Fund– December 31, 2018

			Market
	Shares		Value

Exchange-Traded Funds — 97.3%

Equity Funds — 79.8%
iShares Core S&P Small-Cap ETF		8,600	$	596,152
Vanguard Extended Market ETF†		18,575		1,853,971
Vanguard FTSE Developed Markets ETF		88,735		3,292,069
Vanguard FTSE Emerging Markets ETF		33,440		1,274,064
Vanguard S&P 500 ETF		23,710		5,448,795
Vanguard Value ETF		10,300		1,008,885
				13,473,936

Fixed Income Funds — 17.5%
iShares Core 1-5 Year USD Bond ETF		7,460		366,211
iShares Core US Aggregate Bond ETF		12,705		1,352,956
iShares Floating Rate Bond ETF		8,940		450,218
iShares iBoxx $ High Yield Corporate Bond ETF†		4,120		334,132
Vanguard Intermediate-Term Corporate Bond ETF		5,510		456,559
				2,960,076

Total Exchange-Traded Funds			$	16,434,012

Short-Term Investment Funds — 15.9%
Dreyfus Government Cash Management, Institutional Shares,2.29%^∞Ω		507,163		507,163
Invesco Government & Agency Portfolio, Institutional Class,2.30%**^∞Ω		2,189,455		2,189,455
Total Short-Term Investment Funds			$	2,696,618

Total Investment Securities —113.2%
(Cost $18,726,802)			$	19,130,630

Liabilities in Excess of Other Assets — (13.2%)				(2,237,073	)

Net Assets — 100.0%			$	16,893,557

Represents collateral for securities loaned.

†

All or a portion of the security is on loan. The total market value of the securities on loan as of December 31, 2018 was $2,161,752.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ETF - Exchange-Traded Fund

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	16,434,012	$	—	$	—	$	16,434,012
Short-Term Investment Funds		2,696,618		—		—		2,696,618
Total	$	19,130,630	$	—	$	—	$	19,130,630

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Conservative ETF Fund– December 31, 2018

			Market
	Shares		Value

Exchange-Traded Funds — 97.5%

Fixed Income Funds — 57.9%
Invesco Senior Loan ETF†		19,410	$	422,750
iShares Core 1-5 Year USD Bond ETF		31,200		1,531,608
iShares Core US Aggregate Bond ETF		41,350		4,403,361
iShares Floating Rate Bond ETF		19,340		973,962
iShares iBoxx $ High Yield Corporate Bond ETF†		9,425		764,368
Vanguard Intermediate-Term Corporate Bond ETF		17,355		1,438,035
Vanguard Total International Bond ETF		6,280		340,690
				9,874,774

Equity Funds — 39.6%
iShares Core S&P Small-Cap ETF		5,030		348,680
Vanguard Extended Market ETF†		9,535		951,688
Vanguard FTSE Developed Markets ETF		41,545		1,541,320
Vanguard FTSE Emerging Markets ETF		13,680		521,208
Vanguard S&P 500 ETF		12,535		2,880,668
Vanguard Value ETF		5,065		496,117
				6,739,681

Total Exchange-Traded Funds			$	16,614,455

Short-Term Investment Funds — 15.4%
Dreyfus Government Cash Management, Institutional Shares,2.29%^∞Ω		487,935		487,935
Invesco Government & Agency Portfolio, Institutional Class,2.30%**^∞Ω		2,146,729		2,146,729
Total Short-Term Investment Funds			$	2,634,664

Total Investment Securities —112.9%
(Cost $18,850,931)			$	19,249,119

Liabilities in Excess of Other Assets — (12.9%)				(2,205,596	)

Net Assets — 100.0%			$	17,043,523

Represents collateral for securities loaned.

†

All or a portion of the security is on loan. The total market value of the securities on loan as of December 31, 2018 was $2,110,233.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ETF - Exchange-Traded Fund

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	16,614,455	$	—	$	—	$	16,614,455
Short-Term Investment Funds		2,634,664		—		—		2,634,664
Total	$	19,249,119	$	—	$	—	$	19,249,119

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Moderate ETF Fund– December 31, 2018

			Market
	Shares		Value

Exchange-Traded Funds — 97.7%

Equity Funds — 59.7%
iShares Core S&P Small-Cap ETF		7,990	$	553,867
Vanguard Extended Market ETF†		15,250		1,522,102
Vanguard FTSE Developed Markets ETF		68,005		2,522,985
Vanguard FTSE Emerging Markets ETF		26,980		1,027,938
Vanguard S&P 500 ETF		20,300		4,665,143
Vanguard Value ETF		8,585		840,901
				11,132,936

Fixed Income Funds — 38.0%
Invesco Senior Loan ETF†		17,530		381,803
iShares Core 1-5 Year USD Bond ETF		20,720		1,017,145
iShares Core US Aggregate Bond ETF		27,645		2,943,916
iShares Floating Rate Bond ETF		15,880		799,717
iShares iBoxx $ High Yield Corporate Bond ETF†		6,810		552,291
Vanguard Intermediate-Term Corporate Bond ETF		14,695		1,217,628
Vanguard Total International Bond ETF		3,420		185,535
				7,098,035
Total Exchange-Traded Funds			$	18,230,971

Short-Term Investment Funds — 15.8%
Dreyfus Government Cash Management, Institutional Shares,2.29%^∞Ω		485,971		485,971
Invesco Government & Agency Portfolio, Institutional Class,2.30%**^∞Ω		2,464,847		2,464,847
Total Short-Term Investment Funds			$	2,950,818

Total Investment Securities —113.5%
(Cost $21,012,151)			$	21,181,789

Liabilities in Excess of Other Assets — (13.5%)				(2,523,091	)

Net Assets — 100.0%			$	18,658,698

Represents collateral for securities loaned.

†

All or a portion of the security is on loan. The total market value of the securities on loan as of December 31, 2018 was $2,426,833.

^∞

Open-End Fund.

^Ω

Represents the 7-day SEC yield as of December 31, 2018.

Portfolio Abbreviations:

ETF - Exchange-Traded Fund

Other Information:

	Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Exchange-Traded Funds	$	18,230,971	$	—	$	—	$	18,230,971
Short-Term Investment Funds		2,950,818		—		—		2,950,818
Total	$	21,181,789	$	—	$	—	$	21,181,789

See accompanying Notes to Financial Statements.

Statements of Assets and Liabilities

December 31, 2018

	Touchstone			Touchstone		Touchstone
	Active Bond			Balanced		Bond
	Fund			Fund		Fund
Assets
Investments, at cost	$	55,948,145		$	15,459,158	$	42,581,176
Investments, at market value^(A)	$	55,220,457		$	15,976,282	$	41,637,478
Cash		—			—		—
Cash deposits held at prime broker^(B)		18,889			—		—
Dividends and interest receivable		366,181			39,757		255,615
Receivable for capital shares sold		244,503			—		2,473
Receivable for investments sold		—			—		—
Securities lending income receivable		—			11		—
Receivable from other affiliates		—			—		—
Tax reclaim receivable		—			—		—
Other assets		483			148		376
Total Assets		55,850,513			16,016,198		41,895,942

Liabilities
Payable for return of collateral for securities on loan		—			—		—
Payable for capital shares redeemed		7,392			2,524		26,405
Payable for variation margin for futures contracts		5,135			—		—
Payable for investments purchased		—			—		—
Payable for custody fees		3,634			867		897
Payable to Investment Advisor		18,803			1,936		2,677
Payable to other affiliates		18,904			118		118
Payable to Trustees		3,608			3,608		3,608
Payable for professional services		21,384			21,123		21,239
Payable for pricing services		12,988			7,160		5,524
Payable for reports to shareholders		3,404			4,066		14,925
Payable to Transfer Agent		3,172			700		9,046
Other accrued expenses and liabilities		3,338			3,409		3,363
Total Liabilities		101,762			45,511		87,802

Net Assets	$	55,748,751		$	15,970,687	$	41,808,140

Net assets consist of:
Paid-in capital	$	57,418,348		$	15,223,003	$	45,237,578
Distributable earnings (deficit)		(1,669,597	)		747,684		(3,429,438	)
Net assets applicable to shares outstanding	$	55,748,751		$	15,970,687	$	41,808,140

Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		5,463,060			1,619,101		4,547,568
Net asset value, offering price and redemption price per share	$	10.20		$	9.86	$	9.19
^(A) Includes market value of securities on loan of:	$	—		$	—	$	—
^(B) Represents segregated cash for futures contracts.

See accompanying Notes to Financial Statements.

Statements of Assets and Liabilities(Continued)

				Touchstone						Touchstone
Touchstone		Touchstone		Large Cap		Touchstone		Touchstone		Conservative		Touchstone
Common Stock		Focused		Core Equity		Small Company		Aggressive ETF		ETF		Moderate ETF
Fund		Fund		Fund		Fund		Fund		Fund		Fund

$	115,035,292	$	44,492,800	$	23,216,653	$	53,872,972	$	18,726,802	$	18,850,931	$	21,012,151
$	124,839,222	$	51,134,068	$	25,851,553	$	58,115,200	$	19,130,630	$	19,249,119	$	21,181,789
	—		—		—		66		—		—		—
	—		—		—		—		—		—		—
	48,382		20,052		23,772		27,934		—		—		—
	5,852		2,456		509		34,763		30		—		—
	62,274		25,463		—		943,714		—		—		—
	121		—		—		—		2,328		4,638		3,743
	7,788		—		—		13,763		—		—		—
	—		7,488		—		—		—		—		—
	1,214		494		246		585		157		157		176
	124,964,853		51,190,021		25,876,080		59,136,025		19,133,145		19,253,914		21,185,708

	—		—		—		—		2,189,455		2,146,729		2,464,847
	32,707		16,106		7,380		5,370		6,920		21,284		15,730
	—		—		—		—		—		—		—
	—		—		—		1,166,349		—		—		—
	842		708		866		1,258		503		520		532
	54,277		31,625		14,581		25,806		3,662		3,664		4,077
	—		44,514		10,820		—		8,402		7,516		11,114
	3,608		3,608		3,608		3,608		3,608		3,608		3,608
	21,299		20,878		19,687		20,573		19,986		19,975		20,000
	854		860		607		1,490		203		244		244
	18,943		3,314		3,540		17,700		3,404		3,404		3,404
	32,801		5,548		1,375		6,349		38		38		51
	3,198		3,342		3,390		3,324		3,407		3,409		3,403
	168,529		130,503		65,854		1,251,827		2,239,588		2,210,391		2,527,010

$	124,796,324	$	51,059,518	$	25,810,226	$	57,884,198	$	16,893,557	$	17,043,523	$	18,658,698

$	111,486,075	$	42,697,001	$	20,577,347	$	46,859,650	$	15,164,078	$	16,196,426	$	17,144,490
	13,310,249		8,362,517		5,232,879		11,024,548		1,729,479		847,097		1,514,208
$	124,796,324	$	51,059,518	$	25,810,226	$	57,884,198	$	16,893,557	$	17,043,523	$	18,658,698

	17,133,446		3,018,774		1,764,679		4,560,876		1,145,158		1,567,770		1,710,560
$	7.28	$	16.91	$	14.63	$	12.69	$	14.75	$	10.87	$	10.91
$	—	$	—	$	—	$	—	$	2,161,752	$	2,110,233	$	2,426,833

Statements of Operations

For the Year Ended December 31, 2018

	Touchstone			Touchstone			Touchstone
	Active Bond			Balanced			Bond
	Fund			Fund			Fund
Investment Income
Dividends^(A)	$	160,449		$	196,810		$	126,781
Interest		1,715,366			166,413			1,331,457
Income from securities loaned		8			37			23
Total Investment Income		1,875,823			363,260			1,458,261

Expenses
Investment advisory fees		225,533			96,315			177,303
Administration fees		81,756			25,392			64,272
Compliance fees and expenses		1,386			1,386			1,386
Custody fees		35,337			6,548			6,693
Professional fees		25,276			24,172			26,667
Transfer Agent fees		12,460			3,666			54,674
Pricing expense		27,587			16,747			11,573
Reports to Shareholders		4,927			5,798			22,986
Shareholder servicing fees		37,667			—			—
Trustee fees		14,546			14,546			14,546
Other expenses		7,203			6,977			7,265
Total Expenses		473,678			201,547			387,365
Fees waived and/or reimbursed by the Advisor and/or Affiliates^(B)		—			(52,697	)		(90,383	)
Fees recouped by the Advisor^(B)		—			—			—
Net Expenses		473,678			148,850			296,982

Net Investment Income		1,402,145			214,410			1,161,279

Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investments		(1,143,539	)		26,223			(942,261	)
Net realized losses on futures contracts		(110,728	)		—			—
Net change in unrealized appreciation (depreciation) on investments		(1,050,184	)		(1,254,657	)		(1,114,860	)
Net change in unrealized appreciation (depreciation) on foreign currency transactions		(9	)		—			—
Net change in unrealized appreciation (depreciation) on futures contracts		(6,334	)		—			—

Net Realized and Unrealized Gains (Losses) on Investments		(2,310,794	)		(1,228,434	)		(2,057,121	)

Change in Net Assets Resulting from Operations	$	(908,649	)	$	(1,014,024	)	$	(895,842	)
^(A) Net of foreign tax withholding of:	$	—		$	—		$	—
^(B) See Note 4 in Notes to Financial Statements.

See accompanying Notes to Financial Statements.

Statements of Operations (Continued)

						Touchstone									Touchstone
Touchstone			Touchstone			Large Cap			Touchstone			Touchstone			Conservative			Touchstone
Common Stock			Focused			Core Equity			Small Company			Aggressive ETF			ETF			Moderate ETF
Fund			Fund			Fund			Fund			Fund			Fund			Fund

$	2,246,034		$	938,595		$	497,706		$	564,119		$	443,563		$	512,315		$	542,758
	—			—			—			—			—			—			—
	849			291			—			1,580			11,769			20,180			17,589
	2,246,883			938,886			497,706			565,699			455,332			532,495			560,347

	747,514			418,997			200,250			347,492			48,404			47,599			54,871
	216,779			86,792			44,671			100,773			28,074			27,608			31,825
	1,386			1,386			1,386			1,386			1,386			1,386			1,386
	6,383			14,928			10,761			7,597			2,965			3,158			4,815
	32,815			23,881			21,204			26,712			20,926			20,873			21,069
	175,834			21,769			5,504			49,179			89			88			117
	1,984			1,795			1,240			3,566			398			489			482
	28,682			5,415			4,922			26,741			4,921			4,921			4,921
	—			118,804			44,728			—			48,404			47,599			48,575
	14,546			14,546			14,546			14,546			14,546			14,546			14,546
	8,372			8,324			7,726			7,511			7,489			7,463			7,564
	1,234,295			716,637			356,938			585,503			177,602			175,730			190,171
	(142,925	)		—			(30,376	)		(57,315	)		(32,391	)		(32,932	)		(25,559	)
	—			7,629			—			—			—			—			—
	1,091,370			724,266			326,562			528,188			145,211			142,798			164,612
	1,155,513			214,620			171,144			37,511			310,121			389,697			395,735

	2,353,226			1,582,345			2,431,422			7,084,151			1,015,976			64,256			949,343
	—			—			—			—			—			—			—
	(13,834,239	)		(5,988,632	)		(4,368,016	)		(11,719,149	)		(2,737,022	)		(1,186,959	)		(2,550,390	)
	—			(51	)		—			—			—			—			—
	—			—			—			—			—			—			—

	(11,481,013	)		(4,406,338	)		(1,936,594	)		(4,634,998	)		(1,721,046	)		(1,122,703	)		(1,601,047	)

$	(10,325,500	)	$	(4,191,718	)	$	(1,765,450	)	$	(4,597,487	)	$	(1,410,925	)	$	(733,006	)	$	(1,205,312	)
$	86,767		$	16,710		$	—		$	2,029		$	—		$	—		$	—

Statements of Changes in Net Assets

	Touchstone						Touchstone
	Active Bond						Balanced
	Fund						Fund
	For the			For the			For the			For the
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2018			2017			2018			2017^(A)
From Operations
Net investment income	$	1,402,145		$	1,169,110		$	214,410		$	169,908
Net realized gains (losses) on investments, foreign currency transactions and futures contracts		(1,254,267	)		824,610			26,223			4,772,363
Net change in unrealized appreciation (depreciation) on investments, foreign currency transactions and futures contracts		(1,056,527	)		(28,864	)		(1,254,657	)		(2,726,271	)
Change in Net Assets from Operations		(908,649	)		1,964,856			(1,014,024	)		2,216,000

Distributions to Shareholders from^(B) :
Distributed earnings		(1,215,721	)		—			(4,925,790	)		—
Net investment income		—			(1,484,379	)		—			—
Net realized gains		—			—			—			—
Total Distributions		(1,215,721	)		(1,484,379	)		(4,925,790	)		—

Share Transactions
Proceeds from Shares issued		2,398,497			4,755,717			987,463			2,585,460
Reinvestment of distributions		1,215,721			1,484,379			4,925,790			—
Cost of Shares redeemed		(3,109,625	)		(4,363,557	)		(1,966,389	)		(2,825,940	)
Change in Net Assets from Share Transactions		504,593			1,876,539			3,946,864			(240,480	)

Total Increase (Decrease) in Net Assets		(1,619,777	)		2,357,016			(1,992,950	)		1,975,520

Net Assets
Beginning of period		57,368,528			55,011,512			17,963,637			15,988,117
End of period	$	55,748,751		$	57,368,528		$	15,970,687		$	17,963,637

Undistributed Net Investment Income^(B)		N/A		$	1,214,793			N/A		$	192,936

Share Transactions
Shares issued		229,548			442,714			67,923			185,445
Shares reinvested		119,423			140,168			475,626			—
Shares redeemed		(299,575	)		(403,875	)		(134,014	)		(203,604	)
Change in Shares Outstanding		49,396			179,007			409,535			(18,159	)

^(A)

See Note 9 in Notes to Financial Statements.

^(B)

The presentation of Distributions to Shareholders and Undistributed Net Investment Income have been updated to reflect the changes prescribed in amendments to Regulation S-X, effective November 5, 2018. The December 31, 2017 presentation was not revised.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets (Continued)

Touchstone						Touchstone						Touchstone
Bond						Common Stock						Focused
Fund						Fund						Fund
For the			For the			For the			For the			For the			For the
Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2018			2017^(A)			2018			2017^(A)			2018			2017

$	1,161,279		$	877,747		$	1,155,513		$	1,871,277		$	214,620		$	245,941
	(942,261	)		57,822			2,353,226			76,595,002			1,582,345			1,521,636
	(1,114,860	)		822,808			(13,834,239	)		(48,297,867	)		(5,988,683	)		6,093,467
	(895,842	)		1,758,377			(10,325,500	)		30,168,412			(4,191,718	)		7,861,044

	(1,019,953	)		—			(78,252,461	)		—			(1,443,640	)		—
	—			—			—			(17,544	)		—			(319,068	)
	—			—			—			(944,237	)		—			—
	(1,019,953	)		—			(78,252,461	)		(961,781	)		(1,443,640	)		(319,068	)

	1,866,228			3,169,052			2,634,209			3,579,984			2,053,387			1,615,348
	1,019,953			—			78,252,461			961,781			1,443,640			319,068
	(6,084,112	)		(6,685,628	)		(25,949,973	)		(24,548,603	)		(8,735,725	)		(9,770,104	)
	(3,197,931	)		(3,516,576	)		54,936,697			(20,006,838	)		(5,238,698	)		(7,835,688	)

	(5,113,726	)		(1,758,199	)		(33,641,264	)		9,199,793			(10,874,056	)		(293,712	)

	46,921,866			48,680,065			158,437,588			149,237,795			61,933,574			62,227,286
$	41,808,140		$	46,921,866		$	124,796,324		$	158,437,588		$	51,059,518		$	61,933,574

	N/A		$	1,019,953			N/A		$	1,862,903			N/A		$	272,619

	198,321			335,983			142,207			210,424			106,416			89,251
	111,227			—			9,951,769			54,678			81,006			16,837
	(648,688	)		(707,170	)		(1,412,961	)		(1,431,198	)		(449,637	)		(550,208	)
	(339,140	)		(371,187	)		8,681,015			(1,166,096	)		(262,215	)		(444,120	)

Statements of Changes in Net Assets (Continued)

	Touchstone						Touchstone
	Large Cap Core						Small Company
	Equity Fund						Fund
	For the			For the			For the			For the
	Year			Year			Year			Year
	Ended			Ended			Ended			Ended
	December 31,			December 31,			December 31,			December 31,
	2018			2017			2018			2017^(A)
From Operations									��
Net investment income (loss)	$	171,144		$	168,697		$	37,511		$	(41,203	)
Net realized gains on investments		2,431,422			913,480			7,084,151			7,655,355
Net change in unrealized appreciation (depreciation) on investments		(4,368,016	)		5,278,278			(11,719,149	)		4,293,327
Change in Net Assets from Operations		(1,765,450	)		6,360,455			(4,597,487	)		11,907,479

Distributions to Shareholders from^(B):
Distributed earnings		(1,075,458	)		—			(7,753,304	)		—
Net investment income		—			(215,126	)		—			(40,595	)
Net realized gains		—			(490,437	)		—			(1,801,035	)
Total Distributions		(1,075,458	)		(705,563	)		(7,753,304	)		(1,841,630	)

Share Transactions
Proceeds from Shares issued		1,884,064			1,723,328			3,115,279			2,951,421
Reinvestment of distributions		1,075,458			705,563			7,753,304			1,841,630
Cost of Shares redeemed		(8,273,866	)		(6,609,878	)		(10,972,131	)		(11,622,746	)
Change in Net Assets from Share Transactions		(5,314,344	)		(4,180,987	)		(103,548	)		(6,829,695	)

Total Increase (Decrease) in Net Assets		(8,155,252	)		1,473,905			(12,454,339	)		3,236,154

Net Assets
Beginning of period		33,965,478			32,491,573			70,338,537			67,102,383
End of period	$	25,810,226		$	33,965,478		$	57,884,198		$	70,338,537

Undistributed Net Investment Income^(B)		N/A		$	168,677			N/A		$	—

Share Transactions
Shares issued		109,959			119,708			190,433			203,652
Shares reinvested		70,900			43,312			563,467			128,069
Shares redeemed		(499,688	)		(448,031	)		(664,831	)		(800,526	)
Change in Shares Outstanding		(318,829	)		(285,011	)		89,069			(468,805	)

^(A)

See Note 9 in Notes to Financial Statements.

^(B)

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets (Continued)

Touchstone						Touchstone						Touchstone
Aggressive ETF						Conservative ETF						Moderate ETF
Fund						Fund						Fund
For the			For the			For the			For the			For the			For the
Year			Year			Year			Year			Year			Year
Ended			Ended			Ended			Ended			Ended			Ended
December 31,			December 31,			December 31,			December 31,			December 31,			December 31,
2018			2017			2018			2017			2018			2017

$	310,121		$	329,440		$	389,697		$	327,477		$	395,735		$	407,322
	1,015,976			522,299			64,256			280,856			949,343			618,545
	(2,737,022	)		2,351,512			(1,186,959	)		1,112,874			(2,550,390	)		2,034,617
	(1,410,925	)		3,203,251			(733,006	)		1,721,207			(1,205,312	)		3,060,484

	(856,485	)		—			(612,303	)		—			(1,029,779	)		—
	—			(351,189	)		—			(366,429	)		—			(468,727	)
	—			—			—			(1,756,495	)		—			(3,720,034	)
	(856,485	)		(351,189	)		(612,303	)		(2,122,924	)		(1,029,779	)		(4,188,761	)

	367,839			432,285			6,001,203			2,994,108			654,963			414,787
	856,485			351,189			612,303			2,122,924			1,029,779			4,188,761
	(2,447,202	)		(2,766,183	)		(5,055,678	)		(5,339,887	)		(4,244,729	)		(4,662,698	)
	(1,222,878	)		(1,982,709	)		1,557,828			(222,855	)		(2,559,987	)		(59,150	)

	(3,490,288	)		869,353			212,519			(624,572	)		(4,795,078	)		(1,187,427	)

	20,383,845			19,514,492			16,831,004			17,455,576			23,453,776			24,641,203
$	16,893,557		$	20,383,845		$	17,043,523		$	16,831,004		$	18,658,698		$	23,453,776

	N/A		$	329,417			N/A		$	327,449			N/A		$	407,302

	21,831			27,391			513,937			236,683			53,409			30,330
	56,227			20,879			55,583			178,076			91,877			337,511
	(143,914	)		(174,231	)		(435,181	)		(414,047	)		(347,156	)		(337,079	)
	(65,856	)		(125,961	)		134,339			712			(201,870	)		30,762

Financial Highlights

Touchstone Active Bond Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	10.60		$	10.51		$	10.13		$	10.49		$	10.37
Income (loss) from investment operations:
Net investment income		0.26			0.21			0.26			0.19			0.20
Net realized and unrealized gains (losses) on investments		(0.43	)		0.16			0.35			(0.32	)		0.20
Total from investment operations		(0.17	)		0.37			0.61			(0.13	)		0.40
Distributions from:
Net investment income		(0.23	)		(0.28	)		(0.23	)		(0.23	)		(0.28	)
Net asset value at end of period	$	10.20		$	10.60		$	10.51		$	10.13		$	10.49
Total return^(A)		(1.62	%)		3.54	%		5.98	%		(1.28	%)		3.82	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	55,749		$	57,369		$	55,012		$	52,026		$	48,978
Ratio to average net assets:
Net expenses		0.84	%		0.89	%		0.92	%^(B)		0.97	%^(B)		0.98	%
Gross expenses		0.84	%		0.89	%		0.90	%		0.91	%		1.01	%
Net investment income		2.49	%		2.05	%		2.47	%		2.10	%		1.92	%
Portfolio turnover rate		335	%		482	%		584	%		455	%^(C)		287	%

Touchstone Balanced Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	14.85		$	13.02		$	12.49		$	13.45		$	13.53
Income (loss) from investment operations:		0.18	^(B)		0.14			0.15	^(B)		0.20	^(B)		0.18	^(B)
Net investment income
Net realized and unrealized gains (losses) on investments		(0.92	)		1.69			0.78			(0.19	)		0.88
Total from investment operations		(0.74	)		1.83			0.93			0.01			1.06
Distributions from:
Net investment income		(0.12	)		—			(0.18	)		(0.25	)		(0.23	)
Realized capital gains		(4.13	)		—			(0.20	)		(0.72	)		(0.91	)
Return of capital		—			—			(0.02	)		—			—
Total distributions		(4.25	)		—			(0.40	)		(0.97	)		(1.14	)
Net asset value at end of period	$	9.86		$	14.85		$	13.02		$	12.49		$	13.45
Total return^(A)		(6.07	%)		14.06	%		7.42	%		0.03	%		7.81	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	15,971		$	17,964		$	15,988		$	15,301		$	15,963
Ratio to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.87	%		0.90	%
Gross expenses		1.15	%		0.97	%		0.88	%		0.87	%		0.90	%
Net investment income		1.22	%		1.01	%		1.16	%		1.50	%^(C)		1.31	%
Portfolio turnover rate		140	%		142	%		30	%		38	%		76	%

^(A)

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.

^(B)

The net investment income per share was based on average shares outstanding for the period.

^(C)

Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratio of net investment income by 0.47% for the fiscal year ended December 31, 2015.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Bond Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	9.60		$	9.26		$	9.38		$	9.83		$	9.75
Income (loss) from investment operations:								0.14	^(A)		0.27	^(A)		0.29	^(A)
Net investment income		0.28			0.18
Net realized and unrealized gains (losses) on investments		(0.46	)		0.16			(0.06	)		(0.40	)		0.10
Total from investment operations		(0.18	)		0.34			0.08			(0.13	)		0.39
Distributions from:
Net investment income		(0.23	)		—			(0.20	)		(0.32	)		(0.31	)
Net asset value at end of period	$	9.19		$	9.60		$	9.26		$	9.38		$	9.83
Total return^(B)		(1.88	%)		3.67	%		0.81	%		(1.29	%)		4.01	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	41,808		$	46,922		$	48,680		$	57,312		$	67,067
Ratio to average net assets:
Net expenses		0.67	%		0.68	%		0.67	%		0.67	%		0.65	%
Gross expenses		0.87	%		0.71	%		0.67	%		0.67	%		0.65	%
Net investment income		2.62	%		1.83	%		1.46	%		2.69	%		2.90	%
Portfolio turnover rate		431	%		168	%		197	%		117	%		117	%

Touchstone Common Stock Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	18.74		$	15.52		$	15.46		$	17.69		$	18.39
Income (loss) from investment operations:		0.14	(A)		0.22			0.25	^(A)		0.44	^(A)		0.30	^(A)
Net investment income
Net realized and unrealized gains (losses) on investments		(1.00	)		3.11			1.49			(0.39	)		1.61
Total from investment operations		(0.86	)		3.33			1.74			0.05			1.91
Distributions from:
Net investment income		(0.11	)		(—	)^(C)		(0.27	)		(0.49	)		(0.33	)
Realized capital gains		(10.49	)		(0.11	)		(1.41	)		(1.79	)		(2.28	)
Total distributions		(10.60	)		(0.11	)		(1.68	)		(2.28	)		(2.61	)
Net asset value at end of period	$	7.28		$	18.74		$	15.52		$	15.46		$	17.69
Total return^(B)		(8.05	%)		21.50	%		11.26	%		0.19	%		10.34	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	124,796		$	158,438		$	149,238		$	161,148		$	198,524
Ratio to average net assets:
Net expenses		0.73	%		0.71	%		0.73	%		0.72	%		0.72	%
Gross expenses		0.83	%		0.71	%		0.73	%		0.72	%		0.72	%
Net investment income		0.77	%		1.21	%		1.58	%		2.48	%^(D)		1.57	%
Portfolio turnover rate		10	%		84	%		6	%		9	%		13	%

^(A)

The net investment income per share was based on average shares outstanding for the period.

^(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)

Less than $0.005 per share.

^(D)

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Focused Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	18.88		$	16.70		$	17.95		$	18.64		$	18.81
Income (loss) from investment operations:
Net investment income (loss)		0.08			0.09			0.09			(0.01	)		(0.08	)
Net realized and unrealized gains (losses) on investments		(1.56	)		2.19			2.31			0.37			2.49
Total from investment operations		(1.48	)		2.28			2.40			0.36			2.41
Distributions from:
Net investment income		(0.09	)		(0.10	)		—			—			—
Realized capital gains		(0.40	)		—			(3.65	)		(1.05	)		(2.58	)
Total distributions		(0.49	)		(0.10	)		(3.65	)		(1.05	)		(2.58	)
Net asset value at end of period	$	16.91		$	18.88		$	16.70		$	17.95		$	18.64
Total return^(A)		(7.97	%)		13.64	%		13.11	%		1.97	%		13.10	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	51,060		$	61,934		$	62,227		$	68,317		$	25,178
Ratio to average net assets:
Net expenses					1.21	%^(B)		1.21	%^(B)		1.21	%		1.23	%
Gross expenses		1.21	%^(B)		1.17	%		1.17	%		1.32	%		1.33	%
Net investment income (loss)		0.36	%		0.40	%		0.55	%		(0.07	%)		(0.43	%)
Portfolio turnover rate		11	%		12	%		21	%		286	%^(C)		72	%

Touchstone Large Cap Core Equity Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	16.30		$	13.72		$	14.07		$	14.90		$	13.09
Income (loss) from investment operations:
Net investment income		0.12			0.09			0.08			0.18			0.18
Net realized and unrealized gains (losses) on investments		(1.16	)		2.83			1.18			(0.77	)		1.78
Total from investment operations		(1.04	)		2.92			1.26			(0.59	)		1.96
Distributions from:
Net investment income		(0.10	)		(0.10	)		(0.11	)		(0.24	)		(0.15	)
Realized capital gains		(0.53	)		(0.24	)		(1.50	)		—			—
Total distributions		(0.63	)		(0.34	)		(1.61	)		(0.24	)		(0.15	)
Net asset value at end of period	$	14.63		$	16.30		$	13.72		$	14.07		$	14.90
Total return^(A)		(6.49	%)		21.32	%		8.84	%		(4.01	%)		14.93	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	25,810		$	33,965		$	32,492		$	29,894		$	40,664
Ratio to average net assets:
Net expenses		1.06	%		1.06	%		1.06	%		1.06	%		1.04	%
Gross expenses		1.16	%		1.15	%		1.17	%		1.14	%		1.16	%
Net investment income		0.56	%		0.52	%		0.75	%		0.73	%		1.30	%
Portfolio turnover rate		20	%		12	%		50	%		111	%		41	%

^(A)

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.

^(B)

Net expenses include amounts recouped by the Advisor.

^(C)

Portfolio turnover excludes the purchases and sales of the Touchstone Baron Small Cap Growth Fund and Touchstone Third Avenue Value Fund acquired on December 7, 2015. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Small Company Fund

Selected Data for a Share Outstanding Throughout Each Period

				Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	15.73		$	13.58		$	12.14		$	14.63		$	16.32
Income (loss) from investment operations:								0.01	^(A)		(0.02	)^(A)		0.07	^(A)
Net investment income (loss)		0.01			(0.01	)
Net realized and unrealized gains (losses) on investments		(1.11	)		2.57			2.44			(0.15	)		1.03
Total from investment operations		(1.10	)		2.56			2.45			(0.17	)		1.10
Distributions from:
Net investment income		—			(0.01	)		(0.01	)		—			(0.08	)
Realized capital gains		(1.94	)		(0.40	)		(1.00	)		(2.32	)		(2.71	)
Total distributions		(1.94	)		(0.41	)		(1.01	)		(2.32	)		(2.79	)
Net asset value at end of period	$	12.69		$	15.73		$	13.58		$	12.14		$	14.63
Total return^(B)		(7.98	%)		19.12	%		20.23	%		(1.34	%)		6.68	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	57,884		$	70,339		$	67,102		$	48,938		$	57,935
Ratio to average net assets:
Net expenses		0.76	%		0.76	%		0.76	%		0.78	%		0.78	%
Gross expenses		0.84	%		0.76	%		0.76	%		0.78	%		0.78	%
Net investment income (loss)		0.05	%		(0.06	%)		0.08	%		(0.10	%)		0.45	%
Portfolio turnover rate		68	%		68	%		68	%		77	%		72	%

Touchstone Aggressive ETF Fund

Selected Data for a Share Outstanding Throughout Each Period

				Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	16.83		$	14.60		$	13.73		$	13.98		$	13.28
Income (loss) from investment operations:
Net investment income		0.29			0.30			0.30			0.22			0.21
Net realized and unrealized gains (losses) on investments		(1.59	)		2.22			0.79			(0.23	)		0.78
Total from investment operations		(1.30	)		2.52			1.09			(0.01	)		0.99
Distributions from:
Net investment income		(0.29	)		(0.29	)		(0.22	)		(0.24	)		—
Realized capital gains		(0.49	)		—			—			—			(0.29	)
Total distributions		(0.78	)		(0.29	)		(0.22	)		(0.24	)		(0.29	)
Net asset value at end of period	$	14.75		$	16.83		$	14.60		$	13.73		$	13.98
Total return^(B)		(7.84	)%		17.29	%		7.96	%		(0.10	%)		7.49	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	16,894		$	20,384		$	19,514		$	21,067		$	24,099
Ratio to average net assets:
Net expenses^(C)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses^(C)		0.92	%		0.90	%		0.90	%		0.87	%		0.87	%
Net investment income		1.60	%		1.64	%		1.80	%		1.26	%		1.42	%
Portfolio turnover rate		21	%		21	%		109	%		7	%		12	%

^(A)

The net investment income per share was based on average shares outstanding for the period.

^(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)

Ratio does not include expenses of the underlying funds.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Conservative ETF Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	11.74		$	12.18		$	11.84		$	12.68		$	12.61
Income (loss) from investment operations:
Net investment income		0.23			0.23			0.29			0.17			0.18
Net realized and unrealized gains (losses) on investments		(0.70	)		0.99			0.37			(0.20	)		0.48
Total from investment operations		(0.47	)		1.22			0.66			(0.03	)		0.66
Distributions from:
Net investment income		(0.21	)		(0.26	)		(0.19	)		(0.19	)		(0.15	)
Realized capital gains		(0.19	)		(1.40	)		(0.13	)		(0.62	)		(0.44	)
Total distributions		(0.40	)		(1.66	)		(0.32	)		(0.81	)		(0.59	)
Net asset value at end of period	$	10.87		$	11.74		$	12.18		$	11.84		$	12.68
Total return^(A)		(4.02	%)		10.06	%		5.58	%		(0.24	%)		5.23	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	17,044		$	16,831		$	17,456		$	19,964		$	23,389
Ratio to average net assets:
Net expenses^(B)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses^(B)		0.92	%		0.93	%		0.90	%		0.87	%		0.89	%
Net investment income		2.05	%		1.82	%		1.78	%		1.13	%		1.20	%
Portfolio turnover rate		38	%		31	%		109	%		9	%		13	%

Touchstone Moderate ETF Fund

Selected Data for a Share Outstanding Throughout Each Period

	Year Ended December 31,
	2018			2017			2016			2015			2014
Net asset value at beginning of period	$	12.26		$	13.10		$	13.33		$	15.49		$	14.72
Income (loss) from investment operations:
Net investment income		0.26			0.21			0.28			0.21			0.31
Net realized and unrealized gains (losses) on investments		(0.99	)		1.56			0.64			(0.24	)		0.72
Total from investment operations		(0.73	)		1.77			0.92			(0.03	)		1.03
Distributions from:
Net investment income		(0.24	)		(0.25	)		(0.22	)		(0.27	)		(0.26	)
Realized capital gains		(0.38	)		(2.36	)		(0.93	)		(1.86	)		—
Total distributions		(0.62	)		(2.61	)		(1.15	)		(2.13	)		(0.26	)
Net asset value at end of period	$	10.91		$	12.26		$	13.10		$	13.33		$	15.49
Total return^(A)		(6.02	%)		13.66	%		6.85	%		(0.18	%)		6.96	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	18,659		$	23,454		$	24,641		$	27,923		$	33,200
Ratio to average net assets:
Net expenses^(B)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Gross expenses^(B)		0.87	%		0.84	%		0.82	%		0.80	%		0.79	%
Net investment income		1.80	%		1.72	%		1.83	%		1.30	%		1.41	%
Portfolio turnover rate		20	%		21	%		98	%		9	%		11	%

^(A)

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.

^(B)

Ratio does not include expenses of the underlying funds.

See accompanying Notes to Financial Statements.

Notes to Financial Statements

December 31, 2018

1. Organization

The Touchstone Variable Series Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated February 7, 1994. The Trust consists of the following ten funds (individually, a “Fund”, and collectively, the “Funds”):

Touchstone Active Bond Fund (“Active Bond Fund”)

Touchstone Balanced Fund (“Balanced Fund”)

Touchstone Bond Fund (“Bond Fund”)

Touchstone Common Stock Fund (“Common Stock Fund”)

Touchstone Focused Fund (“Focused Fund”)

Touchstone Large Cap Core Equity Fund (“Large Cap Core Equity Fund”)

Touchstone Small Company Fund (“Small Company Fund”)

Touchstone Aggressive ETF Fund (“Aggressive ETF Fund”)

Touchstone Conservative ETF Fund (“Conservative ETF Fund”)

Touchstone Moderate ETF Fund (“Moderate ETF Fund”)

Each Fund is diversified with the exception of the Common Stock Fund, Focused Fund and the Large Cap Core Equity Fund which are non-diversified.

The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. Shares of beneficial interest of each Fund are available as a funding vehicle for the separate accounts of life insurance companies issuing variable annuity and variable life insurance policies. As of December 31, 2018, a majority of the outstanding shares of the Active Bond Fund, Focused Fund, Large Cap Core Equity Fund, Aggressive ETF Fund, Conservative ETF Fund and Moderate ETF Fund were issued to separate accounts of Western-Southern Life Assurance Company, The Western & Southern Life Insurance Company, Integrity Life Insurance Company, National Integrity Life Insurance Company, and Columbus Life Insurance Company, which are all part of Western & Southern Financial Group, Inc. (“Western & Southern”), and certain supplemental executive retirement plans sponsored by Western & Southern and its affiliates.

All Funds offer a single class of shares. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment goal, policies, and strategies along with information on the class of shares currently being offered.

2. Significant Accounting Policies

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

Each Fund is an investment company that follows the accounting and reporting guidance of Accounting Standards Codification Topic 946 applicable to investment companies.

Regulatory Updates —In August 2018, the Securities and Exchange Commission (the “SEC”) released its Final Rules that eliminated or amended disclosure requirements in the financial statements that were redundant or outdated in light of changes in SEC requirements or U.S. generally accepted accounting principles (“U.S. GAAP”). The Final Rules were effective November 5, 2018. Management has evaluated the SEC Final Rules and is complying with the amendments in the current financial statements.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends and eliminates certain disclosure requirements for fair value as part of its framework project. The ASU is effective for annual and interim periods beginning after December

Notes to Financial Statements(Continued)

15, 2019. The early adoption of the removal or modification of disclosures and delay of adoption of the additional disclosures is permitted. As of December 31, 2018, the Funds have adopted the removal of applicable disclosures.

Security valuation and fair value measurements —U.S. GAAP define fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. All investments in securities are recorded at their fair value. The Funds define the term “market value”, as used throughout this report, as the estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP fair value measurement standards require disclosure of a hierarchy that prioritizes inputs to valuation methods.

These inputs are summarized in the three broad levels listed below:

·	Level 1 –	quoted prices in active markets for identical securities
·	Level 2 –	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·	Level 3 –	significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The aggregate value by input level, as of December 31, 2018, for each Fund’s investments, is included in the Funds’ Portfolio of Investments, which also includes a breakdown of the Funds’ investments by portfolio or sector allocation. The Funds did not hold or transfer any Level 3 categorized securities during the year ended December 31, 2018.

Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy.

During the year ended December 31, 2018, there were no material changes to the valuation policies and techniques.

The Funds’ portfolio securities are valued as of the close of the regular session of trading on the New York Stock Exchange (“NYSE”) (currently 4:00 p.m., Eastern time or at the times as of which the NYSE establishes official closing prices). Portfolio securities traded on stock exchanges are valued at the last reported sale price, official close price, or last bid price if no sales are reported. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”) or from the primary exchange on which the security trades. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Options and futures are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long option positions are valued at the most recent bid price, and short option positions are valued at the most recent ask price on the valuation date and are categorized in Level 1. Shares of mutual funds in which the Funds invest are valued at their respective net asset value (“NAV”) as reported by the underlying funds and are categorized in Level 1.

Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. Debt securities with remaining maturities

Notes to Financial Statements(Continued)

of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which fair value, as determined by amortized cost, is higher or lower than the price that would be received if a Fund sold the investment.

Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and is generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund, to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV.

The Funds may use fair value pricing under the following circumstances, among others:

If the value of a security has been materially affected by events occurring before the Funds’ pricing time but after the close of the primary markets on which the security is traded.

If the exchange on which a portfolio security is principally traded closes early or if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation.

If a security is so thinly traded that reliable market quotations are unavailable due to infrequent trading.

If the validity of market quotations is not reliable.

Securities held by the Funds that do not have readily available market quotations, significant observable inputs, or securities for which the available market quotations are not reliable, are priced at their estimated fair value using procedures approved by the Funds’ Board of Trustees and are generally categorized in Level 3.

Investment companies —The Funds may invest in securities of other investment companies, including exchange-traded funds (“ETFs”), open-end funds and closed-end funds. Open-end funds are investment companies that issue new shares continuously and redeem shares daily. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter (“OTC”). An ETF is an investment company that typically seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. ETF shares are traded on a securities exchange based on their market value. The risks of investment in other investment companies typically reflect the risks of the types of securities in which the other investment companies invest. Investments in ETFs and closed-end funds are subject to the additional risk that their shares may trade at a premium or discount to their NAV. When a Fund invests in another investment company, shareholders of the Fund indirectly bear their proportionate share of the other investment company’s fees and expenses, including operating, registration, trustee, licensing, and marketing, as well as their share of the Fund’s fees and expenses.

Futures Contracts —The Active Bond Fund may buy and sell futures contracts and related options to manage its exposure to changing interest rates and securities prices. Some strategies reduce the Fund’s exposure to price fluctuations, while others tend to increase its market exposure. Futures and options on futures can be volatile instruments and involve certain risks that could negatively impact the Fund’s return. In order to avoid leveraging and related risks, when the Fund purchases futures contracts, it will collateralize its position by depositing an amount of cash or liquid securities, equal to the market value of the futures positions held, less margin deposits, in a segregated account with its custodian or otherwise “cover” its position in a manner consistent with the 1940 Act, or the rules of the Securities and Exchange Commission (the “SEC”) or interpretations thereunder. Collateral equal to the current fair value of the futures position will be determined on a daily basis.

Notes to Financial Statements(Continued)

When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of ) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.

As of December 31, 2018, the Active Bond Fund held futures contracts as shown in the Portfolio of Investments and pledged cash in the amount of $18,889 as collateral to cover open futures contracts.

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

(1)

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

(2)

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

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

Real Estate Investment Trusts —The Funds may invest in real estate investment trusts (“REITs”) that involve risks not associated with investing in stocks. Risks associated with investments in REITs include declines in the value of real estate, general and economic conditions, changes in the value of the underlying property and defaults by borrowers. The value of assets in the real estate industry may go through cycles of relative under performance and outperformance in comparison to equity securities markets in general. Dividend income is recorded using management’s estimate of the income included in distributions received from REIT investments. The actual amounts of income, return of capital and capital gains are only determined by each REIT after its fiscal year-end and may differ from the estimated amount. Estimates of income are adjusted in the Funds to the actual amounts when the amounts are determined.

Derivative instruments and hedging activities —The Active Bond Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and foreign exchange contracts, and typically contains, among other things, collateral posting terms and master netting provisions in the event of a default or termination. Under an ISDA Master Agreement, a party may, under certain circumstances, offset with the counterparty certain derivative financial instrument’s payables or receivables with collateral held or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting). These default events include bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset.

When entering into a derivative transaction, the Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange-traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in

Notes to Financial Statements(Continued)

excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (forward foreign currency contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, are reported separately on the Statements of Assets and Liabilities as cash deposits held at prime broker and due to prime broker, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.

Certain ISDA Master Agreements allow counterparties to OTC derivatives transactions to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreement, which would cause the Fund (counterparty) to accelerate payment of any net liability owed to the counterparty (Fund).

For financial reporting purposes, the Active Bond Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

As of December 31, 2018, the Active Bond Fund’s assets and liabilities that were subject to a MNA on a gross basis were as follows:

	Assets		Liabilities
Derivative Financial Instruments:
Futures Contracts	$	84,911	$	98,331

The following table presents the Active Bond Fund’s assets and liabilities net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of December 31, 2018:

Gross

Amount of

Gross Amount Available

Non-Cash

Cash

Recognized

for Offset in Statement of

Collateral

Net

Counterparty

Derivative Type

Assets

Assets and Liabilities

Received

Amount^(A)

Wells Fargo

Futures Contracts

84,911

(84,911

)

—

Gross

Amount of

Gross Amount Available

Non-Cash

Cash

Recognized

for Offset in Statement of

Collateral

Net

Counterparty

Derivative Type

Liabilities

Assets and Liabilities

Pledged

Amount^(B)

Wells Fargo

Futures Contracts

98,331

(84,911

)

—

(13,420

)

—

(A)

Net amount represents the net amount receivable from the counterparty in the event of default.

(B)

Net amount represents the net amount payable due to the counterparty in the event of default.

The following table sets forth the fair value of the Active Bond Fund’s derivative financial instruments by primary risk exposure as of December 31, 2018:

Fair Value of Derivative Investments As of December 31, 2018
	Derivatives not accounted for as hedging	Asset		Liability
Fund	instruments under ASC 815	Derivatives		Derivatives
Active Bond Fund	Futures - Interest Rate Contracts^*	$	84,911	$	98,331

Statements of Assets and Liabilities Location: Payable for variation margin for futures contracts. Only current day’s variation margin is reported within the payables/receivable of the Statement of Assets and Liabilities. Includes cumulative appreciation/(depreciation) of futures contracts as reported on the Portfolio of Investments.

Notes to Financial Statements(Continued)

The following table sets forth the effect of the Active Bond Fund’s derivative financial instruments by primary risk exposure on the Statements of Operations for the year ended December 31, 2018:

The Effect of Derivative Investments on the Statements of Operations for the Year Ended December 31, 2018
					Change in
					Unrealized
		Realized Gain			Appreciation
	Derivatives not accounted for as hedging	(Loss)			(Depreciation)
Fund	instruments under ASC 815	on Derivatives			on Derivatives
Active Bond Fund	Futures - Interest Rate Contracts^*	$	(110,728	)	$	(6,334	)

Statements of Operations Location: Net realized losses on futures contracts and net change in unrealized appreciation (depreciation) on futures contracts.

For the year ended December 31, 2018, the average quarterly notional value of outstanding derivative financial instruments was as follows:

	Active Bond
	Fund
Interest rate contracts:
Futures - Notional value	$	5,518,588

Portfolio securities loaned —The Funds may lend their portfolio securities. Lending portfolio securities exposes the Funds to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the Funds may experience delays in recovery of the loaned securities or loss of rights in the collateral if the borrower fails financially. To minimize these risks, the borrower must agree to maintain cash collateral with the Funds’ custodian. The loaned securities are secured by collateral valued at least equal, at all times, to the market value of the loaned securities plus accrued interest, if any. When the collateral falls below specified amounts the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved short-term investment vehicle. The approved short-term investment vehicle is subject to market risk.

As of December 31, 2018, the following Funds loaned securities and received collateral as follows:

		Market		Market
		Value of		Value of
		Securities		Collateral		Net
Fund	Security Type	Loaned^*		Received**		Amount***
Aggressive ETF Fund	Exchange-Traded Funds	$	2,161,752	$	2,189,455	$	27,703
Conservative ETF Fund	Exchange-Traded Funds		2,110,233		2,146,729		36,496
Moderate ETF Fund	Exchange-Traded Funds		2,426,833		2,464,847		38,014

The remaining contractual maturity is overnight for all securities.

Gross amount of recognized liabilities for securities lending included in the Statements of Assets and Liabilities.

***

Net amount represents the net amount payable due to the borrower in the event of default.

All cash collateral is received, held, and administered by the Funds’ custodian for the benefit of the lending Fund in its custody account or other account established for the purpose of holding collateral in cash equivalents.

Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on daily trading volumes, float, short-term interest rates and market liquidity and is shown net of fees on the Statements of Operations. When a Fund lends securities, it retains the interest or dividends on

Notes to Financial Statements(Continued)

the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.

Unrealized gain or loss on the market value of the loaned securities that may occur during the term of the loan is recognized by the Fund. The Fund has the right under the lending agreement to recover any loaned securities from the borrower on demand.

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

Share valuation —The NAV per share of each Fund is calculated daily by dividing the total value of a Fund’s assets, less liabilities, by its number of outstanding shares.

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

Distributions to shareholders —Each Fund intends to distribute to its shareholders substantially all of its income and capital gains. Each Fund declares and distributes net investment income, if any, annually, as a dividend to shareholders. Each Fund makes distributions of capital gains, if any, at least annually, net of applicable capital loss carryforwards. Income distributions and capital gain distributions are determined in accordance with income tax regulations. Recognition of the Funds’ net investment income from investments in underlying funds is affected by the timing of dividend declarations by the underlying funds.

Allocations —Expenses not directly billed to a Fund are allocated proportionally among all the Funds in the Trust, and, if applicable, Touchstone Funds Group Trust, Touchstone Institutional Funds Trust and Touchstone Strategic Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.

Security transactions —Security transactions are reflected for financial reporting purposes as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.

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

Notes to Financial Statements(Continued)

3. Investment Transactions

Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the year ended December 31, 2018:

	Active Bond		Balanced		Bond		Common Stock
	Fund		Fund		Fund		Fund
Purchases of investment securities	$	17,937,832	$	2,219,368	$	25,818,346	$	14,952,396
Proceeds from sales and maturities	$	10,380,608	$	1,425,080	$	15,470,242	$	33,049,520

			Large Cap		Small
	Focused		Core Equity		Company		Aggressive
	Fund		Fund		Fund		ETF Fund
Purchases of investment securities	$	6,544,660	$	6,127,447	$	44,661,779	$	3,996,785
Proceeds from sales and maturities	$	13,196,119	$	12,116,264	$	52,801,918	$	5,587,325

	Conservative		Moderate
	ETF Fund		ETF Fund
Purchases of investment securities	$	8,401,157	$	4,344,638
Proceeds from sales and maturities	$	6,980,391	$	7,249,766

For the year ended December 31, 2018, purchases and proceeds from sales and maturities in U.S. Government Securities were $167,876,963 and $172,839,641, respectively, for the Active Bond Fund, $21,814,995 and $22,875,448, respectively, for the Balanced Fund, and $158,555,602 and $167,913,347, respectively, for the Bond Fund.

4. Transactions with Affiliates and Other Related Parties

Certain officers of theTrust are also officers of Touchstone Advisors, Inc. (the “Advisor”),Touchstone Securities, Inc. (the “Underwriter”), or The Bank of New York Mellon, the Sub-Administrator to the Funds, and BNY Mellon Investment Servicing (U.S.) Inc., the Transfer Agent to the Funds (collectively referenced to herein as “BNY Mellon”). Such officers receive no compensation from the Trust. The Advisor and the Underwriter are each wholly-owned subsidiaries of Western & Southern.

On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $145,460 for the year ended December 31, 2018.

MANAGEMENT & EXPENSE LIMITATION AGREEMENTS

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

Active Bond Fund	0.40% on the first $300 million
	0.35% on such assets over $300 million
Balanced Fund	0.55% on all assets
Bond Fund	0.40% on all assets

Notes to Financial Statements(Continued)

Common Stock Fund	0.50% on the first $200 million
Small Company Fund	0.45% on the next $300 million
	0.40% on such assets over $500 million
Focused Fund	0.70% on the first $100 million
	0.65% on the next $400 million
	0.60% on such assets over $500 million
Large Cap Core Equity Fund	0.65% on the first $100 million
	0.60% on the next $100 million
	0.55% on the next $100 million
	0.50% on such assets over $300 million
Aggressive ETF Fund	0.25% on the first $50 million
Conservative ETF Fund	0.23% on the next $50 million
Moderate ETF Fund	0.20% on such assets over $100 million

The Advisor has entered into investment sub-advisory agreements with the following parties (each, a “Sub-Advisor”):

Fort Washington Investment Advisors, Inc.*	Wilshire Associates Incorporated
Active Bond Fund	Aggressive ETF Fund
Balanced Fund	Conservative ETF Fund
Bond Fund	Moderate ETF Fund
Common Stock Fund
Focused Fund
Small Company Fund
The London Company
Large Cap Core Equity Fund

Affiliate of the Advisor and wholly-owned subsidiary of Western & Southern.

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

The Advisor entered into an expense limitation agreement (the “Expense Limitation Agreement”) to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transaction and investment related expenses, including expenses associated with the Funds’ liquidity provider; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not incurred in the ordinary course of business. The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to waive a portion of its fees, and to reimburse certain fund expenses in order to maintain the following expense limitations for the Funds:

Fund
Active Bond Fund	0.97	%
Balanced Fund	0.85	%
Bond Fund	0.67	%
Common Stock Fund	0.73	%
Focused Fund	1.21	%
Large Cap Core Equity Fund	1.06	%
Small Company Fund	0.76	%
Aggressive ETF Fund	0.75	%
Conservative ETF Fund	0.75	%
Moderate ETF Fund	0.75	%

Notes to Financial Statements(Continued)

These expense limitations will remain in effect for all Funds through at least April 29, 2019, except for the Balanced Fund, Bond Fund, Common Stock Fund and Small Company Fund, which will remain in effect through at least October 26, 2019.

During the year ended December 31, 2018, the Advisor or its affiliates waived investment advisory fees, administration fees or shareholder servicing fees of the Funds as follows:

	Investment		Administration		Shareholder
	Advisory		Fees		Servicing
Fund	Fees Waived		Waived		Fees Waived		Total
Balanced Fund	$	27,305	$	25,392	$	—	$	52,697
Bond Fund		26,111		64,272		—		90,383
Common Stock Fund		—		142,925		—		142,925
Large Cap Core Equity Fund		—		30,376		—		30,376
Small Company Fund		—		57,315		—		57,315
Aggressive ETF Fund		—		28,074		4,317		32,391
Conservative ETF Fund		—		27,608		5,324		32,932
Moderate ETF Fund		—		25,559		—		25,559

Under the terms of the Expense Limitation Agreement, the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the date on which the Advisor reduced its compensation or assumed expenses for the Funds. A Fund will make repayments to the Advisor only if such repayment does not cause the Fund’s operating expenses (after the repayment is taken into account) to exceed the Fund’s expense limit in place when such amounts were waived or reimbursed by the Advisor and the Fund’s current expense limitation.

As of December 31, 2018, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:

	Expires on or		Expires on or		Expires on or
	before		before		before
	December 31,		December 31,		December 31,
Fund	2019		2020		2021		Total
Balanced Fund	$	—	$	21,573	$	52,697	$	74,270
Bond Fund		—		13,965		90,383		104,348
Common Stock Fund		—		—		142,925		142,925
Large Cap Core Equity Fund		30,423		30,024		30,376		90,823
Small Company Fund		—		538		57,315		57,853
Aggressive ETF Fund		28,847		29,081		28,074		86,002
Conservative ETF Fund		30,025		26,021		27,608		83,654
Moderate ETF Fund		16,916		22,530		25,559		65,005

For the year ended December 31, 2018, the Advisor recouped previously waived fees or reimbursed expenses from the Focused Fund of $7,629.

ADMINISTRATION AGREEMENT

The Advisor entered into an Administration Agreement with the Trust, whereby the Advisor is responsible for: supplying executive and regulatory compliance services; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with, the SEC and state securities authorities, as well as materials for meetings of the Board; calculating the daily NAV per share; and maintaining the financial books and records of each Fund.

Notes to Financial Statements(Continued)

For its services, the Advisor’s annual administrative fee is:

0.145% on the first $20 billion of the aggregate average daily net assets;

0.11% on the next $10 billion of aggregate average daily net assets;

0.09% on the next $10 billion of aggregate average daily net assets; and

0.07% on the aggregate average daily net assets over $40 billion.

The fee is computed and allocated among the Touchstone Fund Complex (excluding Touchstone Institutional Funds Trust) on the basis of relative daily net assets.

The Advisor has engaged BNY Mellon as the Sub-Administrator to theTrust. BNY Mellon provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.

TRANSFER AGENT AGREEMENT

Under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution disbursing agent, and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.

The Funds may reimburse the Advisor for fees paid to intermediaries such as banks, broker-dealers, financial advisors or other financial institutions for sub-transfer agency, sub-administration and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $22 per sub-account maintained by the intermediary.

PLANS OF DISTRIBUTION

The Trust has adopted a Shareholder Services Plan under which shares of each Fund, except for the Balanced Fund, Bond Fund, Common Stock Fund and Small Company Fund, may directly or indirectly bear expenses for shareholder services provided. Each Fund will incur or reimburse expenses for shareholder services at an annual rate not to exceed 0.25% of the average daily net assets.

UNDERWRITING AGREEMENT

The Underwriter acts as exclusive agent for the distribution of the Funds’ shares. The Underwriter receives no compensation under this agreement.

INTERFUND TRANSACTIONS

Pursuant to Rule 17a-7 under the 1940 Act, the Funds may engage in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common Trustees and/or common Officers. During the year ended December 31, 2018, the Funds did not engage in any Rule 17a-7 transactions.

5. Liquidity

Interfund Lending —Pursuant to an Exemptive Order issued by the SEC on March 28, 2017, the Funds, along with certain other funds in the Touchstone Fund Complex, may participate in an interfund lending

Notes to Financial Statements(Continued)

program. The interfund lending program provides an alternate credit facility that allows the Funds to lend to or borrow from other participating funds in the Touchstone Fund Complex, subject to the conditions of the Exemptive Order. The Funds may not borrow under the facility for leverage purposes and the loans’ duration may be no more than 7 days.

During the year ended December 31, 2018, the program was not utilized.

6. Federal Tax Information

Federal Income Tax —It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. It is each Fund’s policy to distribute all of its taxable income and accordingly, no provision for income taxes has been made.

The tax character of distributions paid for the years ended December 31, 2018 and 2017 is as follows:

	Active Bond				Balanced				Bond
	Fund				Fund				Fund
	2018		2017		2018		2017		2018		2017
From ordinary income	$	1,215,721	$	1,484,379	$	249,571	$	—	$	1,019,953	$	—
From long-term capital gains		—		—		4,676,219		—		—		—
Total distributions	$	1,215,721	$	1,484,379	$	4,925,790	$	—	$	1,019,953	$	—

	Common Stock				Focused				Large Cap
	Fund				Fund				Core Equity Fund
	2018		2017		2018		2017		2018		2017
From ordinary income	$	3,054,826	$	17,544	$	272,621	$	319,068	$	258,518	$	215,126
From long-term capital gains		75,197,635		944,237		1,171,019		—		816,940		490,437
Total distributions	$	78,252,461	$	961,781	$	1,443,640	$	319,068	$	1,075,458	$	705,563

	Small				Aggressive				Conservative				Moderate
	Company Fund				ETF Fund				ETF Fund				ETF Fund
	2018		2017		2018		2017		2018		2017		2018		2017
From ordinary income	$	1,581,187	$	193,590	$	583,667	$	351,189	$	565,936	$	492,618	$	709,444	$	608,441
From long-term capital gains		6,172,117		1,648,040		272,818		—		46,367		1,630,306		320,335		3,580,320
Total distributions	$	7,753,304	$	1,841,630	$	856,485	$	351,189	$	612,303	$	2,122,924	$	1,029,779	$	4,188,761

The following information is computed on a tax basis for each item as of December 31, 2018:

				Balanced			Bond
	Active Bond Fund			Fund			Fund
Tax cost of portfolio investments	$	55,949,028		$	15,460,113		$	42,585,121
Gross unrealized appreciation on investments		338,658			1,707,355			68,527
Gross unrealized depreciation on investments		(1,067,229	)		(1,191,186	)		(1,016,170	)
Net unrealized appreciation (depreciation) on investments		(728,571	)		516,169			(947,643	)
Net unrealized appreciation (depreciation) on derivatives and foreign currency transactions		220			—			—
Undistributed ordinary income		1,435,298			229,302			1,256,747
Undistributed long-term capital gains		—			2,213			—
Capital loss carryforwards		(2,362,180	)		—			(3,738,542	)
Other temporary differences		(14,364	)		—
Distributable earnings (deficit)	$	(1,669,597	)	$	747,684		$	(3,429,438	)

Notes to Financial Statements(Continued)

	Common Stock			Focused			Large Cap
	Fund			Fund			Core Equity Fund
Tax cost of portfolio investments	$	115,077,105		$	44,583,635		$	23,224,566
Gross unrealized appreciation on investments		21,585,938			10,827,286			3,755,033
Gross unrealized depreciation on investments		(11,823,821	)		(4,276,853	)		(1,128,046	)
Net unrealized appreciation (depreciation) on investments		9,762,117			6,550,433			2,626,987
Net unrealized appreciation (depreciation) on foreign
currency		—			(205	)		—
Undistributed ordinary income		2,958,913			214,618			210,592
Undistributed long-term capital gains		589,219			1,597,671			2,395,300
Distributable earnings (deficit)	$	13,310,249		$	8,362,517		$	5,232,879

	Small Company			Aggressive			Conservative			Moderate
	Fund			ETF Fund			ETF Fund			ETF Fund
Tax cost of portfolio investments	$	54,105,954		$	18,726,810		$	18,871,702		$	21,012,160
Gross unrealized appreciation on investments		7,640,557			878,731			648,500			731,188
Gross unrealized depreciation on investments		(3,631,311	)		(474,911	)		(271,083	)		(561,559	)
Net unrealized appreciation (depreciation) on investments		4,009,246			403,820			377,417			169,629
Undistributed ordinary income		749,335			310,116			407,801			395,726
Undistributed long-term capital gains		6,265,967			1,015,543			61,879			948,853
Distributable earnings (deficit)	$	11,024,548		$	1,729,479		$	847,097		$	1,514,208

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals and non-taxable distributions from corporate stock.

As of December 31, 2018, the Funds had the following capital loss carryforwards for federal income tax purposes:

	No		No
	Expiration		Expiration
	Short Term		Long Term		Total
Active Bond Fund		631,131	$	1,731,049	$	2,362,180
Bond Fund		1,499,349		2,239,193		3,738,542

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

Under current laws, certain capital losses realized after October 31 and ordinary losses realized after December 31 may be deferred (and certain ordinary losses after October and/or December 31 may be deferred) and treated as occurring on the first day of the following fiscal year. For the year ended December 31, 2018, the Funds did not elect to defer any losses.

The Funds have analyzed their tax positions taken or to be taken on federal income tax returns for all open tax years (tax years ended December 31, 2015 through 2018) and have concluded that no provision for income tax is required in their financial statements.

Certain reclassifications, the result of permanent differences between financial statement and income tax reporting requirements, have been made to the components of capital. These reclassifications have no impact on the net assets or NAV per share of the Funds. For the year ended December 31, 2018, there were no reclassifications between paid in capital and distributable earnings for the Funds.

7. Commitments and Contingencies

The Funds indemnify theTrust’s officers and Trustees for certain liabilities that might arise from their performance of their duties to the Funds. Additionally, in the normal course of business, the Funds enter into contracts that

Notes to Financial Statements(Continued)

contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds.

8. Principal Risks

Risks Associated with Foreign Investments —Some of the Funds may invest in the securities of foreign issuers. Investing in securities issued by companies whose principal business activities are outside the U.S. may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitations on the removal of funds or other assets of a Fund, political or financial instability or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the U.S., and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers, and issuers than in the U.S.

Risks Associated with Sector Concentration —Certain Funds may invest a high percentage of their assets in specific sectors of the market in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to economic, political, and regulatory developments in a particular sector of the market, positive or negative, and may experience increased volatility in the Funds’ NAVs and magnified effect on the total return.

Risks Associated with Credit —An issuer may be unable to make timely payments of either principal or interest. This may cause the issuer’s securities to decline in value. Credit risk is particularly relevant to those Funds that invest a significant amount of their assets in junk bonds or lower-rated securities.

Risks Associated with Interest Rate Changes —The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates. Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.

Please see the Funds’ prospectus for a complete discussion of these and other risks.

9. Reorganizations

The shareholders of the former series of Sentinel Variable Products Trust (each a “Reorganizing Fund”) approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of each Reorganizing Fund to the corresponding Touchstone Fund as noted below. The Balanced Fund, Bond Fund, Common Stock Fund and Small Company Fund, each a new series of the Trust, assumed the financial and performance history of the respective Reorganizing Fund. The tax-free mergers took place on October 27, 2017.

Notes to Financial Statements(Continued)

				Shares
Reorganizing Funds	Touchstone Funds	Net Assets		Outstanding
Sentinel Variable Products Balanced Fund	Balanced Fund	$	17,335,447		1,196,835
Sentinel Variable Products Bond Fund	Bond Fund		47,002,432		4,927,906
Sentinel Variable Products Common Stock Fund	Common Stock Fund		157,774,597		8,668,827
Sentinel Variable Products Small Company Fund	Small Company Fund		68,759,207		4,596,838

10. Subsequent Events

Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date the financial statements were issued.

At a meeting of the Board of Trustees (the “Board”) of the Trust held on February 12, 2019, the Board approved the reorganization of the Active Bond Fund into the Bond Fund, subject to shareholder approval. The reorganization, if approved, is expected to be completed on or about July 12, 2019.

The Board also approved the reorganization of the Large Cap Core Equity Fund and the Focused Fund into the Common Stock Fund, subject to shareholder approval. The reorganization, if approved, is expected to be completed on or about July 12, 2019.

There were no other subsequent events that necessitated recognition or disclosure in the Funds’ financial statements.

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Trustees of Touchstone Variable Series Trust

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of Touchstone Variable Series Trust (the “Trust”) (comprising the Touchstone Active Bond Fund, Touchstone Balanced Fund, Touchstone Bond Fund, Touchstone Common Stock Fund, Touchstone Focused Fund, Touchstone Large Cap Core Equity Fund, Touchstone Small Company Fund,Touchstone Aggressive ETF Fund, Touchstone Conservative ETF Fund and Touchstone Moderate ETF Fund (collectively referred to as the “Funds”)), including the portfolios of investments, as of December 31, 2018, and the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated in the table below and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising Touchstone Variable Series Trust at December 31, 2018, and the results of their operations, changes in net assets and financial highlights for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles.

		Statements of
Funds comprising the Touchstone	Statement of	changed in net	Financial
Variable Series Trust	Operations	assets	Highlights
Touchstone Active Bond Fund	For the year ended December 31, 2018	For each of the two years in the period ended December 31, 2018	For each of the five years in the period ended December 31, 2018
Touchstone Focused Fund
Touchstone Large Cap Core Equity
Fund
Touchstone Aggressive ETF Fund
Touchstone Conservative ETF Fund
Touchstone Moderate ETF Fund
Touchstone Balanced Fund	For the year ended December 31, 2018	For each of the two years in the period ended December 31, 2018	For each of the two years in the period ended December 31, 2018
Touchstone Bond Fund
Touchstone Common Stock Fund
Touchstone Small Company Fund

The financial highlights of Touchstone Balanced Fund, Touchstone Bond Fund, Touchstone Common Stock Fund and Touchstone Small Company Fund for each of the three years in the period ended December 31, 2016 were audited by other auditors, whose report dated February 16, 2017 expressed an unqualified opinion on those financial highlights.

Report of Independent Registered Public Accounting Firm(Continued)

Basis for Opinion

These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, transfer agent and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more Touchstone Investments’ investment companies since 1999.

Cincinnati, Ohio

February 19, 2019

Other Items(Unaudited)

Dividend Received Deduction

For corporate shareholders, the following ordinary distributions paid during the fiscal year ended December 31, 2018 qualify for the corporate dividends received deduction. The Funds intend to pass through the maximum allowable percentage.

Balanced Fund	50.23	%
Common Stock Fund	51.89	%
Focused Fund	100.00	%
Large Cap Core Equity Fund	100.00	%
Small Company Fund	25.62	%

For the fiscal year ended December 31, 2018, the Funds designated long-term capital gains as follows:

Balanced Fund	$	4,676,219
Common Stock Fund	$	75,197,635
Focused Fund	$	1,598,247
Large Cap Core Equity Fund	$	2,395,806
Small Company Fund	$	6,266,337
Aggressive ETF Fund	$	1,015,984
Conservative ETF Fund	$	61,891
Moderate ETF Fund	$	949,352

Proxy Voting Guidelines and Proxy Voting Records

The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission’s (the Commission) website at sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30, which will be filed by August 31 of that year is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.

Quarterly Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. Effective March 2019, this information will be filed on Form N-PORT and will be publicly available 60 days after the end of the period. The complete listing of each Fund’s portfolio holdings is available on the Commission’s website and will be made available to shareholders upon request by calling 1.800.543.0407.

Schedule of Shareholder Expenses

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including investment advisory fees; shareholder servicing fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2018 through December 31, 2018).

Actual Expenses

The first line of the table below for each Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600

Other Items(Unaudited) (Continued)

account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the six months ended December 31, 2018” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the table below for each Fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

								Expenses
	Net Expense			Beginning		Ending		Paid During
	Ratio			Account		Account		the Six Months
	Annualized			Value		Value		Ended
	December 31,			July 1,		December 31,		December 31,
	2018			2018		2018		2018*
Touchstone Active Bond Fund
Actual		0.80	%	$	1,000.00	$	1,003.70	$	4.04
Hypothetical		0.80	%	$	1,000.00	$	1,021.17	$	4.08

Touchstone Balanced Fund
Actual		0.85	%	$	1,000.00	$	938.10	$	4.15
Hypothetical		0.85	%	$	1,000.00	$	1,020.92	$	4.33

Touchstone Bond Fund
Actual		0.67	%	$	1,000.00	$	1,005.30	$	3.39
Hypothetical		0.67	%	$	1,000.00	$	1,021.83	$	3.41

Touchstone Common Stock Fund
Actual		0.73	%	$	1,000.00	$	908.40	$	3.51
Hypothetical		0.73	%	$	1,000.00	$	1,021.53	$	3.72

Touchstone Focused Fund
Actual		1.21	%	$	1,000.00	$	904.50	$	5.81
Hypothetical		1.21	%	$	1,000.00	$	1,019.11	$	6.16

Touchstone Large Cap Core Equity Fund
Actual		1.06	%	$	1,000.00	$	944.90	$	5.20
Hypothetical		1.06	%	$	1,000.00	$	1,019.86	$	5.40

Touchstone Small Company Fund
Actual		0.76	%	$	1,000.00	$	865.20	$	3.57
Hypothetical		0.76	%	$	1,000.00	$	1,021.37	$	3.87

Touchstone Aggressive ETF Fund**
Actual		0.75	%	$	1,000.00	$	921.60	$	3.63
Hypothetical		0.75	%	$	1,000.00	$	1,021.42	$	3.82

Other Items(Unaudited) (Continued)

								Expenses
	Net Expense			Beginning		Ending		Paid During
	Ratio			Account		Account		the Six Months
	Annualized			Value		Value		Ended
	December 31,			July 1,		December 31,		December 31,
	2018			2018		2018		2018*
Touchstone Conservative ETF Fund**
Actual		0.75	%	$	1,000.00	$	965.50	$	3.72
Hypothetical		0.75	%	$	1,000.00	$	1,021.42	$	3.82

Touchstone Moderate ETF Fund**
Actual		0.75	%	$	1,000.00	$	942.90	$	3.67
Hypothetical		0.75	%	$	1,000.00	$	1,021.42	$	3.82

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).

The annualized expense ratio for the Fund does not include fees and expenses of the underlying funds in which the Fund invests.

Advisory and Sub-Advisory Agreement Approval Disclosure

At a meeting held on November 15, 2018, the Board of Trustees (the “Board” or “Trustees”) of the Touchstone Variable Series Trust (the “Trust”), and by a separate vote, the Independent Trustees of the Trust, approved the continuance of the Investment Advisory Agreement between the Trust and the Advisor with respect to each Fund of the Trust, and the continuance of the Sub-Advisory Agreement between the Advisor and each Fund’s respective Sub-Advisor.

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

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

Nature, Extent and Quality of Advisor Services.The Board considered the level and depth of knowledge of the Advisor, including the professional experience and qualifications of senior personnel. In evaluating the quality of services provided by the Advisor, the Board took into account its familiarity with the Advisor’s senior management through Board meetings, discussions and reports during the preceding year. The Board also took into account the Advisor’s compliance policies and procedures. The quality of administrative and other services, including the Advisor’s role in coordinating the activities of the Funds’ other service providers, was also considered. The

Other Items(Unaudited) (Continued)

Board also considered the Advisor’s relationship with its affiliates and the resources available to them, as well as any potential conflicts of interest.

The Board discussed the Advisor’s effectiveness in monitoring the performance of each Sub-Advisor, including the one that was an affiliate of the Advisor, and the Advisor’s timeliness in responding to performance issues. The Board considered the Advisor’s process for monitoring each of the Sub-Advisors, which includes an examination of both qualitative and quantitative elements of the Sub-Advisor’s organization, personnel, procedures, investment discipline, infrastructure and performance. The Board considered that the Advisor conducts periodic compliance due diligence of each Sub-Advisor, during which the Advisor examines a wide variety of factors, such as the financial condition of the Sub-Advisor, the quality of the Sub-Advisor’s systems, the effectiveness of the Sub-Advisor’s disaster recovery programs, trade allocation and execution procedures, compliance with the Sub-Advisor’s policies and procedures, results of regulatory examinations and any other factors that might affect the quality of services that the Sub-Advisor provides to the applicable Fund(s). The Board noted that the Advisor’s compliance monitoring processes also include quarterly reviews of compliance certifications, and that any issues arising from such reports and the Advisor’s compliance visits to the Sub-Advisors are reported to the Board.

The Trustees concluded that they were satisfied with the nature, extent and quality of services provided to each Fund by the Advisor under the Investment Advisory Agreement.

Advisor’s Compensation and Profitability.The Board took into consideration the financial condition and profitability of the Advisor and its affiliates (including the Sub-Advisor to certain of the Funds) and the direct and indirect benefits derived by the Advisor and its affiliates from the Advisor’s relationship with the Funds. The information considered by the Board included operating profit margin information for the Advisor’s business as a whole. The Board noted that the Advisor had waived a portion of advisory fees and administrative fees and/or reimbursed expenses in order to limit certain Funds’ net operating expenses. The Board also noted that the Advisor pays the Sub-Advisors’ sub-advisory fees out of the advisory fees the Advisor receives from the Funds. The Board reviewed the profitability of the Advisor’s relationship with the Funds both before and after tax expenses, and also considered whether the Advisor has the financial wherewithal to continue to provide services to the Funds, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds. The Board also considered that affiliates of the Advisor may benefit from certain indirect tax benefits, including those relating to dividend received deductions.

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

Expenses and Performance.The Board compared the respective advisory fees and total expense ratios for each of the Funds with various comparative data, including the median and average advisory fees and total expense ratios of each Fund’s respective peer group. The Board also considered, among other data, the Funds’ respective performance results during the six-month, twelve-month and thirty-seventh periods ended September 30, 2018 and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board also took into account current market conditions and their effect on the Funds’ performance.

The Board also considered the effect of each Fund’s growth and size on its performance and expenses. The Board noted that the Advisor had waived a portion of the fees and/or reimbursed expenses of certain Funds in order to reduce those Funds’ respective operating expenses to targeted levels. The Board noted that the sub-advisory fees under the Sub-Advisory Agreement with respect to each Fund were paid by the Advisor out of the advisory fees it receives from the Fund and considered the impact of such sub-advisory fees on the profitability of the

Other Items(Unaudited) (Continued)

Advisor. In reviewing the respective total expense ratios and performance of each of the Funds, the Board also took into account the nature, extent and quality of the services provided to the Funds by the Advisor and its affiliates.

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

Touchstone Active Bond Fund. The Fund’s advisory fee and total expense ratio were below the median and above the median, respectively, of its peer group. The Board took into account management’s discussion of the Fund’s expenses, including the impact that the relatively small size of the Fund has upon expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 5th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 2nd quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Balanced Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2018 was in the 2nd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Bond Fund The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 4th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 5th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. The Board also took into account that the Fund’s portfolio management team and investment process changed in October 2017. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Common Stock Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 4th quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 3rd quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Other Items(Unaudited) (Continued)

Touchstone Focused Fund. The Fund’s advisory fee and total expense ratio were above the median of its peer group. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2018 was in the 5th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Large Cap Core Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and thirty-six-month periods ended September 30, 2018 was in the 4th quintile of its peer group, while the Fund’s performance for the twelve-month period ended September 30, 2018 was in the 3rd quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Small Company Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six- and twelve-month periods ended September 30, 2018 was in the 3rd quintile of its peer group, while the Fund’s performance for the thirty-six-month period ended September 30, 2018 was in the 2nd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Aggressive ETF Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2018 was in the 3rd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Conservative ETF Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2018 was in the 3rd quintile of its peer group. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

Touchstone Moderate ETF Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving and/or reimbursing a portion of the Fund’s fees and/or

Other Items(Unaudited) (Continued)

expenses. The Fund’s performance for the six-, twelve- and thirty-six-month periods ended September 30, 2018 was in the 4th quintile of its peer group. The Board noted management’s discussion of the Fund’s performance, including both its recent and long-term performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory relative to the performance of funds with similar investment objectives and relevant indices, and that the advisory fee was reasonable in light of the services received by the Fund from the Advisor and the other factors considered.

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

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

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

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

Other Items(Unaudited) (Continued)

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

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

Touchstone Active Bond Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Balanced Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Bond Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Common Stock Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Focused Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Large Cap Core Equity Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Small Company Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Other Items(Unaudited) (Continued)

Touchstone Aggressive ETF Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Conservative ETF Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Moderate ETF Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended September 30, 2018 as compared to each Fund’s peer group and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Sub-Advisor. The Board was mindful of the Advisor’s ongoing monitoring of each Sub-Advisor’s performance and the measures undertaken by the Advisor to address any underperformance.

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

Management of the Trust(Unaudited)

Listed below is required information regarding the Trustees and principal officers of the Trust. The Trust’s Statement of Additional Information includes additional information about theTrustees and is available, without charge, upon request by calling 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com.

Interested Trustee¹:

				Number
				of Funds
				Overseen
		Term of		in the
Name	Position(s)	Office And		Touchstone	Other
Address	Held with	Length of	Principal Occupation(s)	Fund	Directorships
Year of Birth	Trust	Time Served	During Past 5 Years	Complex²	Held During the Past 5 Years³
Jill T. McGruder Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1955	Trustee and President	Until retirement at age 75 or until she resigns or is removed Trustee since 1999	President and CEO of IFS Financial Services, Inc. (a holding company).	48	IFS Financial Services, Inc. (a holding company) from 1999 to the present; Integrity and National Integrity Life Insurance Co. from 2005 to the present; Touchstone Securities (the Trust’s distributor) from 1999 to the present; Touchstone Advisors, Inc.(the Trust’s investment advisor and administrator) from 1999 to the present; W&S Brokerage Services (a brokerage company) from 1999 to the present; W&S Financial Group Distributors (a distribution company) from 1999 to the present; Cincinnati Analysts, Inc. from 2012 to the present; Columbus Life Insurance Co. from 2016 to the present; The Lafayette Life Insurance Co. from 2016 to the present; Taft Museum of Art from 2007 to the present; YWCA of Greater Cincinnati from 2012 to the present; and LL Global, Inc. from 2016 to the present.
Independent Trustees:
Phillip R. Cox c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1947	Trustee	Until retirement at age 75 or until he resigns or is removed Trustee since 1999	President and Chief Executive Officer of Cox Financial Corp. (a financial services company) from 1971 to the present.	48	Director of Cincinnati Bell (a communications company) from 1994 to the present; Bethesda Inc. (a hospital) from 2005 to the present; Timken Co. (a manufacturing company) from 2004 to 2014; TimkenSteel from 2014 to the present; Diebold, Inc. (a technology solutions company) from 2004 to the present; and Ohio Business Alliance for Higher Education and the Economy from 2005 to the present.
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 (from 2003 to January 2015) of Cintas Corporation (a business services company).	48	None.

Management of the Trust(Unaudited) (Continued)

Independent Trustees (Continued):

				Number
				of Funds
				Overseen
		Term of		in the
Name	Position	Office And		Touchstone	Other
Address	Held with	Length of	Principal Occupation(s)	Fund	Directorships
Year of Birth	Trust	Time Served	During Past 5 Years	Complex²	Held During the Past 5 Years³
Susan J. Hickenlooper c/o Touchstone Advisors, Inc. 303 Broadway Suite 11 00 Cincinnati, Ohio 45202 Year of Birth: 1946	Trustee	Until retirement at age 75 or until she resigns or is removed Trustee since 2009	Retired; formerly Financial Analyst for Impact 100 (charitable organization) from November 2012 to 2013.	48	Trustee of Diocese of Southern Ohio from 2014 to the present; and Trustee of Cincinnati Parks Foundation from 2000 to 2016.
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	Vice President of Portfolio Management at Soin International LLC (a private multinational holding company) from 2004 to the present.	48	Director of SaverSystems, Inc. from 2015 to the present; Director of Buckeye EcoCare, Inc. (a lawn care company) from 2013 to the present; Trustee of Dayton Region New Market Fund, LLC (a private fund) from 2010 to the present; and Trustee of the Entrepreneurs Center, Inc. (a small business incubator) from 2006 to the present.
Edward J. VonderBrink c/o Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1944	Trustee	Until retirement at age 75 or until he resigns or is removed Trustee since 2013	Consultant, VonderBrink Consulting LLC from 2000 to the present.	48	Director of Streamline Health Solutions, Inc. (healthcare IT) from 2006 to 2015; Mercy Health from 2013 to the present; Mercy Health Foundation (healthcare nonprofit) from 2008 to the present; Al Neyer Inc. (a construction company) from 2013 to the present; and BASCO Shower Door from 2010 to the present.

Ms. McGruder, as a director of the Advisor and the Distributor, and an officer of affiliates of the Advisor and the Distributor, is an “interested person” of the Trust within the meaning of Section 2(a)(19) of the 1940 Act.

As of December 31, 2018, the Touchstone Fund Complex consists of 10 variable annuity series of the Trust, 15 series of Touchstone Funds Group Trust, 22 series of Touchstone Strategic Trust, and 1 series of Touchstone Institutional Funds Trust.

Each Trustee is also a Trustee of Touchstone Funds Group Trust, Touchstone Institutional Funds Trust, and Touchstone Strategic Trust.

Management of the Trust(Unaudited) (Continued)

The following is a list of the Principal Officers of the Trust, the length of time served, and principal occupations for the past five years.

Principal Officers:

		Term of
Name	Position(s)	Office and
Address	Held with	Length of	Principal Occupation(s)
Year of Birth	Trust¹	Time Served	During Past 5 Years
Jill T. McGruder Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1955	President and Trustee	Until resignation, removal or disqualification President since 2006.	See biography above.
Steven M. Graziano Touchstone Advisors, Inc. 303 Broadway Suite 1100 Cincinnati, Ohio 45202 Year of Birth: 1954	Vice President	Until resignation, removal or disqualification Vice President since 2009	President of Touchstone Advisors, Inc.
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.; Chief Compliance Officer of Envestnet Asset Management, Inc. (2009 to 2013).
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).
Meredyth A. Whitford Western & Southern Financial Group 400 Broadway Cincinnati, Ohio 45202 Year of Birth: 1981	Secretary	Until resignation, removal or disqualification Secretary since 2018	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).

Each officer also holds the same office with Touchstone Funds Group Trust, Touchstone Institutional Funds Trust, and Touchstone Strategic Trust.

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PRIVACY PROTECTION POLICY

We Respect Your Privacy

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

Our Pledge to Our Clients

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

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

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

We Collect the Following Nonpublic Personal Information About You:

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

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

Categories of Information We Disclose and Parties to Whom We Disclose

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

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

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

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

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

We will not sell your personal information to anyone.

We May Provide Information to Service Your Account

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

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

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

A Member of Western & Southern Financial Group^®

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

103

TSF-1006-TVST-AR-1812

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.

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. Mr. William Gale 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 $168,000 and $158,500 for the fiscal years ending December 31, 2018 and December 31, 2017, respectively, including fees associated with the annual audits and filings of Form N1A 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 $10,500 and $7,092 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively. The fees for 2018 relate to additional audit procedures and review of predecessor auditor work papers. The fees for 2017 relate to the review of the Form N-14 filings for the funds.

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 $32,900 and $31,630 for the fiscal years ended December 31, 2018 and December 31, 2017, 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 $1,493 and $476 for the fiscal years ended December 31, 2018 and December 31, 2017, 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 services described in paragraphs (c) 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 $849,416 and $39,198 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.

* These include the advisors (excluding 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 directors 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 of this form.

(b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

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

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of trustees, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter 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, or 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)(3)

Not applicable.

(a)(4)

Not applicable.

(b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Touchstone Variable Series Trust

By (Signature and Title)* /s/ Jill T. McGruder

Jill T. McGruder, President

(principal executive officer)

Date February 25, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Jill T. McGruder

Jill T. McGruder, President

(principal executive officer)

Date February 25, 2019

By (Signature and Title)* /s/ Terrie A. Wiedenheft

Terrie A. Wiedenheft, Controller and Treasurer

(principal financial officer)

Date February 25, 2019

^* Print the name and title of each signing officer under his or her signature.

Touchstone Variable Series Trust N-CSRCertified annual shareholder report (management investment company)