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 811-21113
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Touchstone Institutional Funds Trust
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(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100
Cincinnati, OH 45202
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(Address of principal executive offices) (Zip code)
Jill McGruder
Touchstone Advisors, Inc.
303 Broadway, Suite 1100
Cincinnati, OH 45202
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(Name and address of agent for service)
registrant's telephone number, including area code: (513) 878-4066
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Date of fiscal year end: 12/31
Date of reporting period: 06/30/09
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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Semi-Annual Report JUNE 30, 2009
(UNAUDITED)
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TOUCHSTONE INSTITUTIONAL FUNDS TRUST
Touchstone JSAM Institutional Large Cap Value Fund
Touchstone JSAM Institutional Value Fund
Touchstone Mazama Institutional Growth Fund
Touchstone Sands Capital Institutional Growth Fund
[LOGO] TOUCHSTONE(R)
INVESTMENTS
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Table of Contents
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Page
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Tabular Presentation of Portfolios of Investments 3
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Statements of Assets and Liabilities 4
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Statements of Operations 5
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Statements of Changes in Net Assets 6-7
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Financial Highlights 8-11
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Notes to Financial Statements 12-19
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Portfolios of Investments:
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JSAM Institutional Large Cap Value Fund 20
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JSAM Institutional Value Fund 21
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Mazama Institutional Growth Fund 22-23
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Sands Capital Institutional Growth Fund 24
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Other Items 25-26
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2
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Tabular Presentation of Portfolios of Investments (Unaudited)
June 30, 2009
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The illustrations below provide each Fund's sector allocation. We hope it will
be useful to shareholders as it summarizes key information about each Fund's
investments.
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JSAM INSTITUTIONAL LARGE CAP VALUE FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 33.9
Information Technology 17.6
Consumer Discretionary 14.3
Utilities 10.0
Energy 8.8
Industrials 5.0
Telecommunication Services 3.3
Miscellaneous 3.1
Consumer Staples 0.5
Investment Funds 26.0
Other Assets/Liabilities (Net) (22.5)
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TOTAL 100.0
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MAZAMA INSTITUTIONAL GROWTH FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Consumer Discretionary 21.9
Information Technology 21.4
Health Care 20.9
Financials 14.8
Industrials 8.6
Energy 5.0
Telecommunication Services 3.8
Consumer Staples 2.6
Investment Funds 20.3
Other Assets/Liabilities (Net) (19.3)
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TOTAL 100.0
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JSAM INSTITUTIONAL VALUE FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 34.4
Consumer Discretionary 20.4
Information Technology 16.9
Energy 11.0
Industrials 7.1
Utilities 5.7
Telecommunication Services 1.7
Consumer Staples 0.5
Investment Funds 27.0
Other Assets/Liabilities (Net) (24.7)
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TOTAL 100.0
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SANDS CAPITAL INSTITUTIONAL GROWTH FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 31.3
Health Care 21.7
Consumer Discretionary 13.9
Energy 13.8
Financials 10.2
Materials 3.6
Telecommunication Services 3.0
Industrials 1.6
Investment Funds 10.5
Other Assets/Liabilities (Net) (9.6)
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TOTAL 100.0
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3
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Statements of Assets and Liabilities
June 30, 2009 (Unaudited)
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JSAM
INSTITUTIONAL JSAM MAZAMA SANDS CAPITAL
LARGE CAP INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
VALUE VALUE GROWTH GROWTH
FUND FUND FUND FUND
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ASSETS
Investment securities:
At cost $ 13,842,651 $ 13,187,631 $ 20,204,302 $ 924,347,570
===================================================================================================================================
Affiliated securities, at market value $ 843,898 $ 118,142 $ 220,016 $ 8,421,206
Non-affiliated securities, at market value 12,893,198 8,995,142 20,131,232 807,631,891
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At market value - including $2,005,802, $1,821,026,
$3,141,152, and $67,667,977 of securities loaned
for the JSAM Institutional Large Cap Value Fund,
JSAM Institutional Value Fund, Mazama Institutional
Growth Fund, and Sands Capital Institutional
Growth Fund, respectively. $ 13,737,096 $ 9,113,284 $ 20,351,248 $ 816,053,097
Dividends and interest receivable 3,418 3,128 5,455 299,496
Receivable for capital shares sold -- -- -- 696,023
Receivable for securities sold -- 43,017 17,649 --
Receivable for securities lending income 424 399 3,263 11,547
Other assets 4,477 5,298 2,408 19,644
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TOTAL ASSETS 13,745,415 9,165,126 20,380,023 817,079,807
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LIABILITIES
Payable upon return of securities loaned 2,075,288 1,854,864 3,238,797 69,624,741
Payable for capital shares redeemed -- -- 37 718,315
Payable for securities purchased 452,466 -- 66,580 1,766,185
Payable to Advisor 6,121 4,617 13,344 487,290
Other accrued expenses and liabilities 1,396 -- 177 99,696
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TOTAL LIABILITIES 2,535,271 1,859,481 3,318,935 72,696,227
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NET ASSETS $ 11,210,144 $ 7,305,645 $ 17,061,088 $ 744,383,580
===================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 26,456,939 $ 45,693,249 $ 23,184,255 $ 1,011,757,578
Accumulated net investment income (loss) (3,149) (2,212) 309 (1,039,385)
Accumulated net realized losses on investments (15,138,091) (34,311,045) (6,270,422) (158,040,140)
Net unrealized appreciation (depreciation)
on investments (105,555) (4,074,347) 146,946 (108,294,473)
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NET ASSETS $ 11,210,144 $ 7,305,645 $ 17,061,088 $ 744,383,580
===================================================================================================================================
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) 4,363,677 3,115,273 2,525,655 89,622,232
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Net asset value, offering price and redemption price
per share $ 2.57 $ 2.35 $ 6.76 $ 8.31
===================================================================================================================================
See accompanying notes to financial statements.
4
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Statements of Operations
For the Six Months Ended June 30, 2009 (Unaudited)
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JSAM
INSTITUTIONAL JSAM MAZAMA SANDS CAPITAL
LARGE CAP INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
VALUE VALUE GROWTH GROWTH
FUND FUND FUND FUND
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INVESTMENT INCOME
Dividends from affiliated securities $ 2,010 $ 1,051 $ 1,173 $ 91,811
Dividends from non-affiliated securities (A) 38,956 33,322 46,949 1,317,815
Interest 3 3 2 4
Income from securities loaned 3,318 3,015 25,321 164,459
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TOTAL INVESTMENT INCOME 44,287 37,391 73,445 1,574,089
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EXPENSES
Unified Management fee 27,010 23,770 66,537 2,548,019
Registration fees 810 1,039 1,240 57,720
Miscellaneous expenses 518 327 851 18,996
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TOTAL EXPENSES 28,338 25,136 68,628 2,624,735
Operating expenses reimbursed by the Advisor (35) (361) (102) (11,261)
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NET EXPENSES 28,303 24,775 68,526 2,613,474
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NET INVESTMENT INCOME (LOSS) 15,984 12,616 4,919 (1,039,385)
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REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses from security transactions (4,356,303) (8,778,670) (2,206,513) (55,203,262)
Net change in unrealized appreciation/depreciation
on investments 6,983,398 10,401,823 5,354,972 219,500,680
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NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,627,095 1,623,153 3,148,459 164,297,418
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NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,643,079 $ 1,635,769 $ 3,153,378 $ 163,258,033
===================================================================================================================================
(A) Net of foreign tax withholding of: $ 89 $ 57 $ -- $ --
See accompanying notes to financial statements.
5
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Statements of Changes in Net Assets
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JSAM INSTITUTIONAL JSAM
LARGE CAP VALUE INSTITUTIONAL VALUE
FUND FUND
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SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED
2009 DECEMBER 31, 2009 DECEMBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008
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FROM OPERATIONS
Net investment income $ 15,984 $ 201,560 $ 12,616 $ 394,386
Net realized losses from security transactions (4,356,303) (8,732,844) (8,778,670) (17,569,212)
Net change in unrealized appreciation/depreciation
on investments 6,983,398 (3,075,416) 10,401,823 (5,694,172)
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NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 2,643,079 (11,606,700) 1,635,769 (22,868,998)
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DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (19,133) (205,374) (14,669) (401,184)
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FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 3,424,697 7,264,882 33,353 9,649,898
Reinvested distributions 19,132 198,787 14,499 399,926
Payments for shares redeemed (724,984) (5,696,679) (225,648) (5,521,994)
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NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE
TRANSACTIONS 2,718,845 1,766,990 (177,796) 4,527,830
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TOTAL INCREASE (DECREASE) IN NET ASSETS 5,342,791 (10,045,084) 1,443,304 (18,742,352)
NET ASSETS
Beginning of period 5,867,353 15,912,437 5,862,341 24,604,693
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End of period $ 11,210,144 $ 5,867,353 $ 7,305,645 $ 5,862,341
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ACCUMULATED NET INVESTMENT LOSS $ (3,149) $ -- $ (2,212) $ (159)
===================================================================================================================================
See accompanying notes to financial statements.
6
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Statements of Changes in Net Assets (Continued)
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MAZAMA SANDS CAPITAL
INSTITUTIONAL INSTITUTIONAL
GROWTH GROWTH
FUND FUND
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SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED
2009 DECEMBER 31, 2009 DECEMBER 31,
(UNAUDITED) 2008(A) (UNAUDITED) 2008
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FROM OPERATIONS
Net investment income (loss) $ 4,919 $ 93,733 $ (1,039,385) $ (4,012,993)
Net realized losses from security transactions (2,206,513) (4,064,539) (55,203,262) (98,617,235)
Net change in unrealized appreciation/depreciation
on investments 5,354,972 (5,208,026) 219,500,680 (533,006,141)
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NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 3,153,378 (9,178,832) 163,258,033 (635,636,369)
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DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (4,610) (98,683) -- --
From net realized gains -- -- -- (25,298,914)
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DECREASE IN NET ASSETS FROM DISTRIBUTIONS
TO SHAREHOLDERS (4,610) (98,683) -- (25,298,914)
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FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 548,751 22,633,550 122,792,780 479,719,949
Reinvested distributions 4,610 98,683 -- 24,184,001
Payments for shares redeemed (95,551) (208) (133,224,670) (626,905,070)
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NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARE TRANSACTIONS 457,810 22,732,025 (10,431,890) (123,001,120)
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TOTAL INCREASE (DECREASE) IN NET ASSETS 3,606,578 13,454,510 152,826,143 (783,936,403)
NET ASSETS
Beginning of period 13,454,510 -- 591,557,437 1,375,493,840
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End of period $ 17,061,088 $ 13,454,510 $ 744,383,580 $ 591,557,437
===================================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ 309 $ -- $ (1,039,385) $ --
===================================================================================================================================
(A) Represents the period from commencement of operations (January 30, 2008)
through December 31, 2008.
See accompanying notes to financial statements.
7
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Financial Highlights
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JSAM INSTITUTIONAL LARGE CAP VALUE FUND
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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SIX MONTHS
ENDED PERIOD
JUNE 30, YEAR ENDED DECEMBER 31, ENDED
2009 ------------------------------------- DECEMBER 31,
(UNAUDITED) 2008 2007 2006 2005(A)
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Net asset value at beginning of period $ 1.93 $ 6.92 $ 10.95 $ 9.97 $ 10.00
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Income (loss) from investment operations:
Net investment income 0.00(B) 0.09 0.13 0.12 0.05
Net realized and unrealized gains (losses) on investments 0.65 (4.99) (3.00) 1.59 0.09
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Total from investment operations 0.65 (4.90) (2.87) 1.71 0.14
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Less distributions:
Dividends from net investment income (0.01) (0.09) (0.13) (0.12) (0.05)
Distributions from net realized gains -- -- (1.03) (0.61) (0.12)
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Total distributions (0.01) (0.09) (1.16) (0.73) (0.17)
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Net asset value at end of period $ 2.57 $ 1.93 $ 6.92 $ 10.95 $ 9.97
====================================================================================================================================
Total return 33.56%(C) (71.46%) (26.37%) 17.32% 1.43%(C)
====================================================================================================================================
Net assets at end of period (000's) $ 11,210 $ 5,867 $ 15,912 $ 21,846 $ 14,673
====================================================================================================================================
Ratio of net expenses to average net assets 0.73%(D) 0.73% 0.77% 0.75% 0.71%(D)
Ratio of gross expenses to average net assets 0.73%(D) 0.89% 0.77% 0.75% 0.71%(D)
Ratio of net investment income to average net assets 0.41%(D) 1.89% 1.22% 1.18% 1.24%(D)
Portfolio turnover rate 102%(D) 88% 72% 82% 45%(C)
(A) Represents the period from commencement of operations (June 20, 2005)
through December 31, 2005.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
8
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Financial Highlights (Continued)
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JSAM INSTITUTIONAL VALUE FUND
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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SIX MONTHS
ENDED PERIOD
JUNE 30, YEAR ENDED DECEMBER 31, ENDED
2009 ------------------------------------- DECEMBER 31,
(UNAUDITED) 2008 2007 2006 2005(A)
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Net asset value at beginning of period $ 1.82 $ 7.47 $ 10.65 $ 10.33 $ 10.00
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Income (loss) from investment operations:
Net investment income 0.00(B) 0.10 0.17 0.02 0.02
Net realized and unrealized gains (losses) on investments 0.53 (5.65) (3.10) 1.45 0.45
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Total from investment operations 0.53 (5.55) (2.93) 1.47 0.47
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Less distributions:
Dividends from net investment income (0.00)(B) (0.10) (0.17) (0.02) (0.02)
Distributions from net realized gains -- -- (0.08) (1.13) (0.12)
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Total distributions -- (0.10) (0.25) (1.15) (0.14)
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Net asset value at end of period $ 2.35 $ 1.82 $ 7.47 $ 10.65 $ 10.33
====================================================================================================================================
Total return 29.50%(C) (75.05%) (27.81%) 14.35% 4.69%(C)
====================================================================================================================================
Net assets at end of period (000's) $ 7,306 $ 5,862 $ 24,605 $ 10,202 $ 7,714
====================================================================================================================================
Ratio of net expenses to average net assets 0.83%(D) 0.83% 0.83% 0.90% 0.83%(D)
Ratio of gross expenses to average net assets 0.84%(D) 0.89% 0.83% 0.90% 0.83%(D)
Ratio of net investment income to average net assets 0.42%(D) 1.97% 1.94% 0.24% 0.34%(D)
Portfolio turnover rate 130%(D) 89% 128% 88% 43%(C)
(A) Represents the period from commencement of operations (June 17, 2005)
through December 31, 2005.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
9
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Financial Highlights (Continued)
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MAZAMA INSTITUTIONAL GROWTH FUND
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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SIX MONTHS
ENDED PERIOD
JUNE 30, ENDED
2009 DECEMBER 31,
(UNAUDITED) 2008(A)
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Net asset value at beginning of period $ 5.55 $ 10.00
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Income (loss) from investment operations:
Net investment income 0.00(B) 0.05
Net realized and unrealized gains (losses) on investments 1.21 (4.45)
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Total from investment operations 1.21 (4.40)
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Dividends from net investment income (0.00)(B) (0.05)
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Net asset value at end of period $ 6.76 $ 5.55
===============================================================================================
Total return 21.83%(C) (44.13%)(C)
===============================================================================================
Net assets at end of period (000's) $ 17,061 $ 13,455
===============================================================================================
Ratio of net expenses to average net assets 0.98%(D) 0.98%(D)
Ratio of gross expenses to average net assets 0.98%(D) 0.99%(D)
Ratio of net investment income to average net assets 0.07%(D) 0.70%(D)
Portfolio turnover rate 105%(D) 200%(D)
(A) Represents the period from commencement of operations (January 30, 2008)
through December 31, 2008.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
10
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Financial Highlights (Continued)
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SANDS CAPITAL INSTITUTIONAL GROWTH FUND
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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SIX MONTHS
ENDED PERIOD
JUNE 30, YEAR ENDED DECEMBER 31, ENDED
2009 ------------------------------------- DECEMBER 31,
(UNAUDITED) 2008 2007 2006 2005(A)
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Net asset value at beginning of period $ 6.50 $ 13.18 $ 11.10 $ 11.79 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.01) (0.04) (0.04) (0.04) (0.02)
Net realized and unrealized gains (losses) on investments 1.82 (6.35) 2.12 (0.65) 1.81
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Total from investment operations 1.81 (6.39) 2.08 (0.69) 1.79
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Distributions from net realized gains -- (0.29) -- -- --
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Net asset value at end of period $ 8.31 $ 6.50 $ 13.18 $ 11.10 $ 11.79
====================================================================================================================================
Total return 27.85%(B) (48.45%) 18.74% (5.85%) 17.90%(B)
====================================================================================================================================
Net assets at end of period (000's) $ 744,384 $ 591,557 $1,375,494 $1,234,451 $ 615,503
====================================================================================================================================
Ratio of net expenses to average net assets 0.80%(C) 0.80% 0.80% 0.80% 0.79%(C)
Ratio of net investment loss to average net assets (0.32%)(C) (0.37%) (0.31%) (0.44%) (0.45%)(C)
Portfolio turnover rate 31%(C) 44% 36% 28% 16%(B)
(A) Represents the period from commencement of operations (January 21, 2005)
through December 31, 2005.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
11
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Notes to Financial Statements
June 30, 2009 (Unaudited)
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1. ORGANIZATION
The Touchstone Institutional Funds Trust (the Trust), a Delaware Business Trust,
is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company with four funds, all of which are
non-diversified. The financial statements included herein are those of the
Touchstone JSAM Institutional Large Cap Value Fund, Touchstone JSAM
Institutional Value Fund, Touchstone Mazama Institutional Growth Fund, and
Touchstone Sands Capital Institutional Growth Fund, each a "Fund" and
collectively the "Funds". The Funds commenced operations on June 20, 2005, June
17, 2005, January 30, 2008 and January 21, 2005, respectively.
The Funds are registered to offer one 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 objectives, 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 significant accounting policies followed by
the Funds:
SECURITY VALUATION - The Funds' portfolio securities are valued as of the close
of the regular session of trading on the New York Stock Exchange (currently 4:00
p.m., Eastern time). Portfolio securities traded on stock exchanges are valued
at the last sale price and portfolio securities quoted by NASDAQ are valued at
the NASDAQ Official Closing Price (NOCP). Securities not traded on a particular
day, or for which the last sale price is not readily available, are valued at
their last broker-quoted bid prices as obtained from one or more of the major
market makers for such securities by an independent pricing service. Securities
for which market quotations or the NOCP are not readily available are valued
based on fair value as determined by or under the direction of the Board of
Trustees. Money market instruments and other debt securities with a remaining
maturity of less than 60 days are valued at amortized cost, which approximates
market value. Shares of open-end mutual funds in which the Funds invest are
valued at their respective net asset values as reported by the underlying funds.
The Funds have adopted the Financial Accounting Standards Board's (FASB)
Statement on Financial Accounting Standards (SFAS) No. 157,"Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards. The
changes to current GAAP from the application of this Statement relate to the
definition of fair value, the methods used to measure fair value, and the
expanded disclosures about fair value measurements.
Various inputs are used in determining the value of the Funds investments. These
inputs are summarized in the three broad levels listed below:
o Level 1 - quoted prices in active markets for identical securities
o Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
o Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
12
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Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For
example, money market securities are valued using amortized cost, in accordance
with rules under the Investment Company Act of 1940. Generally, amortized cost
approximates the current fair value of a security, but since the value is not
obtained from a quoted price in an active market, such securities are reflected
as Level 2.
On April 9, 2009 the FASB issued Staff Position SFAS 157-4, "Determining Fair
Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Indentifying Transactions That Are Not Orderly" (FSP
157-4). FSP 157-4 provides additional guidance in estimating fair value under
Statement No. 157, "Fair Value Measurements" (SFAS 157), when the volume and
level of transaction activity for an asset or liability have significantly
decreased in relation to normal market activity for the asset or liability. FSP
157-4 also provides additional guidance on circumstances that may indicate a
transaction is not orderly. FSP 157-4 is effective for interim and annual
periods ending after June 15, 2009, and the Funds have adopted its provisions
for the period ending June 30, 2009. FSP 157-4 did not have a significant impact
on the Funds' financial position, results of operations, or disclosures for the
six months ending June 30, 2009.
The aggregate value by input level, as of June 30, 2009, for each Fund's
investments, as well as a reconciliation of assets for which significant
unobservable inputs (Level 3) were used in determining value, is included in
each Fund's Portfolio of Investments, which also includes a breakdown of the
Fund's investments by geographic/industry concentration.
PORTFOLIO SECURITIES LOANED - Each Fund may lend its portfolio securities.
Lending portfolio securities exposes a Fund to the risk that the borrower may
fail to return the loaned securities or may not be able to provide additional
collateral or that the Fund 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
collateral marked to market daily, in the form of cash and/or liquid securities,
with the Fund's custodian in an amount at least equal to the market value of the
loaned securities.
As of June 30, 2009, the following Funds loaned common stocks and received
collateral as follows:
MARKET VALUE VALUE OF
OF COMMON COLLATERAL
STOCKS LOANED RECEIVED
- --------------------------------------------------------------------------------
JSAM Institutional Large Cap Value Fund $ 2,005,802 $ 2,075,288
JSAM Institutional Value Fund $ 1,821,026 $ 1,854,864
Mazama Institutional Growth Fund $ 3,141,152 $ 3,238,797
Sands Capital Institutional Growth Fund $ 67,667,977 $ 69,624,741
All collateral received as cash and securities is received, held and
administered by the Funds' custodian for the benefit of the Funds in the
applicable custody account or other account established for the purpose of
holding collateral.
Funds participating in securities lending receive compensation in the form of
fees, or retain a portion of interest or dividends on the investment of any cash
received as collateral. The Funds also continue to receive interest or dividends
on the securities loaned. The loans are secured by collateral valued at least
equal, at all times, to the fair value of the securities loaned plus accrued
interest. Unrealized gain or loss on the fair value of the securities loaned
that may occur during the term of the loan are recognized by the Funds. The
Funds have the right under the lending agreement to recover the securities from
the borrower on demand.
13
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
SHARE VALUATION - The net asset value per share is calculated each business day.
It is computed by dividing the assets of each Fund, less its liabilities, by the
number of outstanding shares of each Fund.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date. Costs used in determining
realized gains and losses on the sales of investment securities are those of the
specific securities sold.
DIVIDENDS AND DISTRIBUTIONS - The Funds pay distributions of net income
quarterly. Any net realized capital gains on sales of securities are distributed
to shareholders at least annually.
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 reported period. Actual results could differ from
those estimates.
RECENT ACCOUNTING PRONOUNCEMENTS - In June 2009, the FASB issued Statement of
Financial Accounting Standards No. 168, "The FASB Accounting Standards
Codification(TM) and the Hierarchy of Generally Accepted Accounting Principles -
a replacement of FASB Statement No 162" ("SFAS 168"). SFAS 168 replaces SFAS No.
162, "The Hierarchy of Generally Accepted Accounting Principles" and establishes
the "FASB Accounting Standards Codification(TM)" ("Codification") as the source
of authoritative accounting principles recognized by the FASB to be applied by
nongovernmental entities in the preparation of financial statements in
conformity with U.S. GAAP. All guidance contained in the Codification carries an
equal level of authority. On the effective date of SFAS 168, the Codification
will supersede all then-existing non-SEC accounting and reporting standards. All
other nongrandfathered non-SEC accounting literature not included in the
Codification will become nonauthoritative. SFAS 168 is effective for financial
statements issued for interim and annual periods ending after September 15,
2009. The Funds evaluated this new statement, and have determined that it will
not have a significant impact on the determination or reporting of the Funds'
financial statements.
EXPENSES - The Funds pay a unified management fee to Touchstone Advisors, Inc.
(the Advisor) for providing or procuring advisory, administration and other
services. The Advisor is responsible for compensating any third party engaged to
provide services under its supervision and is also responsible for payment of
the fees of the independent Trustees, custodian, independent auditor, legal
counsel (excluding costs in connection with certain litigation or administrative
actions), and the transfer and dividend disbursing agent. The Funds will pay all
state registration fees and charges incurred related to printing and mailing to
existing shareholders prospectuses, statement of additional information, proxy
solicitation material, shareholder reports and EDGAR filings.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments and U.S. Government
securities) were as follows for the six months ended June 30, 2009:
JSAM JSAM MAZAMA SANDS CAPITAL
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
LARGE CAP VALUE VALUE GROWTH GROWTH
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------
Cost of Purchases $ 6,186,365 $ 3,750,813 $ 7,720,487 $ 97,122,781
Proceeds from Sales $ 3,852,146 $ 3,907,880 $ 7,315,978 $ 102,910,575
- ---------------------------------------------------------------------------------------------------
14
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
4. TRANSACTIONS WITH AFFILIATES
Certain officers of the Trust are also officers of the Advisor, the Underwriter
(Touchstone Securities, Inc.) and/or JPMorgan Chase Bank, N.A. (JPMorgan) the
Sub-Administrator and Transfer Agent to the Funds. The Advisor and Underwriter
are each wholly-owned indirect subsidiaries of The Western and Southern Life
Insurance Company (Western-Southern).
As of June 30, 2009, 83% of the JSAM Institutional Value Fund was owned by
Western-Southern and subsidiaries.
AFFILIATED INVESTMENTS - Each Fund may invest in the Touchstone Institutional
Money Market Fund, subject to compliance with the several conditions set forth
in an order received by the Trust from the Securities and Exchange Commission.
To the extent that the other Touchstone Funds are invested in the Touchstone
Institutional Money Market Fund, the Advisor and Administrator will be paid
additional fees from the Touchstone Institutional Money Market Fund that will
not be waived or reimbursed.
A summary of each Fund's investment in the Touchstone Institutional Money Market
Fund for the six months ended June 30, 2009, is noted below:
SHARE ACTIVITY
-----------------------------------------------------
BALANCE BALANCE VALUE
12/31/08 PURCHASES SALES 06/30/09 DIVIDENDS 06/30/09
- -----------------------------------------------------------------------------------------------------------------------------
JSAM Institutional Large Cap Value Fund 30,239 3,321,373 (2,507,714) 843,898 $ 2,010 $ 843,898
JSAM Institutional Value Fund 186,990 1,459,653 (1,528,501) 118,142 $ 1,051 $ 118,142
Mazama Institutional Growth Fund 163,358 1,965,396 (1,908,738) 220,016 $ 1,173 $ 220,016
Sands Capital Institutional Growth Fund 11,655,145 74,380,735 (77,614,674) 8,421,206 $ 91,811 $ 8,421,206
- -----------------------------------------------------------------------------------------------------------------------------
MANAGEMENT AGREEMENT - The Trust and the Advisor are parties to a management
agreement under which the Advisor receives a fee, calculated daily and paid
monthly, of 0.70%, 0.80%, 0.95% and 0.78% per annum of the average daily net
assets of the JSAM Institutional Large Cap Value Fund, JSAM Institutional Value
Fund, Mazama Institutional Growth Fund, and Sands Capital Institutional Growth
Fund, respectively. Under the management agreement, the Advisor continuously
reviews, supervises and administers the Funds' investment programs, subject to
the supervision of and policies established by the Board of Trustees. Under the
management agreement, the Advisor also provides administrative services to the
Trust and pays all operating expenses on the Trust's behalf, excluding BlueSky
state registration fees and charges incurred related to printing and mailing to
existing shareholders prospectuses, statement of additional information, proxy
solicitation material, shareholder reports and EDGAR filings.
JS Asset Management, LLC ("JSAM"), a SEC registered investment advisor, serves
as the sub-advisor to the JSAM Institutional Large Cap Value Fund and JSAM
Institutional Value Fund and makes investment decisions for the Funds and also
ensures compliance with the Funds' investment policies and guidelines.
Mazama Capital Management, Inc. ("Mazama"), a SEC registered investment advisor,
serves as the sub-advisor to the Mazama Institutional Growth Fund and makes
investment decisions for the Fund and also ensures compliance with the Fund's
investment policies and guidelines.
Sands Capital Management, LLC, a SEC registered investment advisor, serves as
the sub-advisor to the Sands Capital Institutional Growth Fund and makes
investment decisions for the Fund and also ensures compliance with the Fund's
investment policies and guidelines.
The Advisor, (not the Funds), pays the Sub-Advisors a fee for their services.
15
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
EXPENSE LIMITATION AGREEMENT - Effective January 1, 2009, the Trust and the
Advisor entered into an Expense Limitation Agreement to contractually limit
operating expenses of the JSAM Institutional Large Cap Value Fund, JSAM
Institutional Value Fund, Mazama Institutional Growth Fund, and Sands Capital
Institutional Growth Fund. The maximum operating expense limit in any year with
respect to the Funds is based on a percentage of the average daily net assets of
the Funds. The Advisor has agreed to waive advisory fees and reimburse expenses
in order to maintain expense limitations for the Funds as follows through April
30, 2010:
- --------------------------------------------------------------------------------
JSAM Institutional Large Cap Value Fund 0.73%
JSAM Institutional Value Fund 0.83%
Mazama Institutional Growth Fund 0.98%
Sands Capital Institutional Growth Fund 0.80%
- --------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital shares as shown in the Statements of Changes in
Net Assets are the result of the following capital share transactions for the
periods shown:
JSAM INSTITUTIONAL JSAM INSTITUTIONAL
LARGE CAP VALUE VALUE
FUND FUND
- -----------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED
2009 DECEMBER 31, 2009 DECEMBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008
- -----------------------------------------------------------------------------------------------------------------
Shares sold 1,661,894 1,925,287 26,040 1,598,093
Shares reinvested 10,570 56,624 9,062 94,042
Shares redeemed (356,094) (1,235,389) (135,743) (1,770,775)
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 1,316,370 746,522 (100,641) (78,640)
Shares outstanding, beginning of period 3,047,307 2,300,785 3,215,914 3,294,554
- -----------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 4,363,677 3,047,307 3,115,273 3,215,914
=================================================================================================================
MAZAMA SANDS CAPITAL
INSTITUTIONAL GROWTH INSTITUTIONAL GROWTH
FUND FUND
- -----------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED YEAR
JUNE 30, ENDED JUNE 30, ENDED
2009 DECEMBER 31, 2009 DECEMBER 31,
(UNAUDITED) 2008 (A) (UNAUDITED) 2008
- -----------------------------------------------------------------------------------------------------------------
Shares sold 115,123 2,412,028 17,281,354 45,994,085
Shares reinvested 682 13,616 -- 3,761,120
Shares redeemed (15,774) (20) (18,701,456) (63,110,167)
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 100,031 2,425,624 (1,420,102) (13,354,962)
Shares outstanding, beginning of period 2,425,624 -- 91,042,334 104,397,296
- -----------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 2,525,655 2,425,624 89,622,232 91,042,334
=================================================================================================================
(A) Represents the period from commencement of operations (January 30, 2008)
through December 31, 2008.
16
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
6. FEDERAL INCOME TAXES
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 taxable net income, the Fund (but
not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare and pay as
dividends in each calendar year at least 98% of its net realized capital gains
(earned during the twelve months ending October 31) plus undistributed amounts
from prior years.
The tax character of distributions paid for the years ended December 31, 2008
and 2007 was as follows:
JSAM INSTITUTIONAL JSAM INSTITUTIONAL
LARGE CAP VALUE FUND VALUE FUND
- ------------------------------------------------------------------------------------
2008 2007 2008 2007
- ------------------------------------------------------------------------------------
From ordinary income $ 205,374 $1,448,818 $ 401,184 $ 731,010
From long-term capital gains -- 835,346 -- 26,027
- ------------------------------------------------------------------------------------
$ 205,374 $2,284,164 $ 401,184 $ 757,037
- ------------------------------------------------------------------------------------
MAZAMA INSTITUTIONAL SANDS CAPITAL INSTITUTIONAL
GROWTH FUND GROWTH FUND
- --------------------------------------------------------------------------------
2008 2008 2007
- --------------------------------------------------------------------------------
From ordinary income $ 98,683 $ -- $ --
From long-term capital gains -- 25,298,914 --
- --------------------------------------------------------------------------------
$ 98,683 $25,298,914 $ --
- --------------------------------------------------------------------------------
The following information is computed on a tax basis for each item as of
December 31, 2008:
JSAM INSTITUTIONAL MAZAMA SANDS CAPITAL
LARGE CAP JSAM INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
VALUE FUND VALUE FUND GROWTH FUND GROWTH FUND
- -----------------------------------------------------------------------------------------------------------------
Tax cost of portfolio investments $ 15,437,388 $ 21,666,558 $ 22,714,821 $ 1,039,711,134
- -----------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation -- -- 432,767 --
Gross unrealized depreciation (8,251,734) (14,887,400) (6,158,606) (373,694,383)
- -----------------------------------------------------------------------------------------------------------------
Net unrealized depreciation (8,251,734) (14,887,400) (5,725,839) (373,694,383)
Post-October losses (1,082,945) (5,161,472) (2,664,455) (53,725,739)
Capital loss carryforward (8,536,062) (19,959,673) (881,641) (3,211,909)
Other temporary differences -- (159) -- --
- -----------------------------------------------------------------------------------------------------------------
Accumulated deficit $ (17,870,741) $ (40,008,704) $ (9,271,935) $ (430,632,031)
=================================================================================================================
The difference between the tax cost of portfolio investments and the financial
statement cost is primarily due to wash sales.
17
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
As of December 31, 2008, the Funds had the following capital loss carryforwards
for federal income tax purposes.
FUND AMOUNT DECEMBER 31,
- --------------------------------------------------------------------------------
JSAM Institutional Large Cap Value Fund $ 8,536,062 2016
-------------
JSAM Institutional Value Fund $ 3,875,886 2015
16,083,787 2016
-------------
$ 19,959,673
-------------
Mazama Institutional Growth Fund $ 881,641 2016
-------------
Sands Capital Institutional Growth Fund $ 3,211,909 2016
-------------
The capital loss carryforwards may be utilized in the current and future years
to offset net realized capital gain, if any, prior to distributing such gains to
shareholders.
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 net
asset value per share of the Funds and are designed to present the Funds'
capital accounts on a tax basis. The following reclassifications of net
investment loss have been made to the following Funds for the year ended
December 31, 2008:
UNDISTRIBUTED ACCUMULATED
PAID-IN NET INVESTMENT NET REALIZED
CAPITAL INCOME GAINS (LOSSES)
- -----------------------------------------------------------------------------------------------
JSAM Institutional Large Cap Value Fund $ (3,814) $ 3,814 $ --
JSAM Institutional Value Fund $ (6,656) $ 6,656 $ --
Mazama Institutional Growth Fund $ (5,580) $ 4,950 $ 630
Sands Capital Institutional Growth Fund $ (4,012,993) $ 4,012,993 $ --
- -----------------------------------------------------------------------------------------------
For the six months ended June 30, 2009, the Trust had the following federal tax
cost resulting in net unrealized depreciation as follows:
GROSS GROSS NET
FEDERAL UNREALIZED UNREALIZED UNREALIZED
TAX COST APPRECIATION DEPRECIATION DEPRECIATION
- -------------------------------------------------------------------------------------------------------------
JSAM Institutional Large Cap Value Fund $ 15,005,432 $ 1,333,939 $ (2,602,275) $ (1,268,336)
JSAM Institutional Value Fund $ 13,598,861 $ 750,866 $ (5,236,443) $ (4,485,577)
Mazama Institutional Growth Fund $ 20,722,115 $ 2,487,467 $ (2,858,334) $ (370,867)
Sands Capital Institutional Growth Fund $ 970,246,800 $ 42,998,015 $(197,191,718) $(154,193,703)
The Funds have adopted FASB Interpretation No. 48 "Accounting for Uncertainty in
Income Taxes" (FIN 48). FIN 48 provides guidance for how uncertain tax positions
should be recognized, measured, presented and disclosed in the financial
statements. FIN 48 requires the evaluation of tax positions taken or expected to
be taken in the course of preparing the Funds' tax returns to determine whether
the tax positions are "more-likely-than-not" of being sustained by the
applicable tax authority. Tax positions not deemed to meet a
more-likely-than-not threshold would be recorded in the current year. The Funds
have analyzed their tax positions taken on Federal income tax returns for all
open tax years (tax years ended December 31, 2005 through 2008) for purposes of
implementing FIN 48 and have concluded that no provision for income tax is
required in their financial statements.
18
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
7. COMMITMENTS AND CONTINGENCIES
The Funds indemnify the Trust's officers and Trustees for certain liabilities
that might arise from their performance of their duties to the Funds.
Additionally, in the normal course of business, the Funds enter into contracts
that contain a variety of representations and warranties and which provide
general indemnifications. The Funds' maximum exposure under these arrangements
is unknown, as this would involve future claims that may be made against the
Funds that have not yet occurred. However, based on experience, the Funds expect
the risk of loss to be remote.
8. CONCENTRATIONS/RISKS
Each Fund may invest a high percentage of its assets in specific sectors of the
market in order to achieve a potentially greater investment return. As a result,
the Funds may be more susceptible to economic, political, and regulatory
developments in a particular sector of the market, positive or negative, and may
experience increased volatility on the Funds' net asset value and magnified
effect on the total return.
9. SUBSEQUENT EVENTS
The Funds evaluated subsequent events from June 30, 2009, the date of these
financial statements, through August 21, 2009, the date these financial
statements were issued and available. There were no subsequent events to report
that would have a material impact on the Funds' financial statements.
19
- --------------------------------------------------------------------------------
Portfolio of Investments
JSAM Institutional Large Cap Value Fund - June 30, 2009 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
PREFERRED STOCK -- 1.1% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 0.8%
Citigroup, Inc. - Series AA 4,700 $ 87,796
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 0.3%
General Motors Corp. 13,500 38,205
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCK $ 126,001
- --------------------------------------------------------------------------------
COMMON STOCKS -- 95.4%
FINANCIALS -- 33.1%
Bank of America Corp. 47,500 627,000
Capital One Financial Corp. + 30,100 658,588
Chimera Investment Corp. 9,400 32,806
Genworth Financial, Inc. - Class A* 86,260 602,957
Hartford Financial Services Group, Inc. + 43,800 519,906
JPMorgan Chase & Co. 9,800 334,278
Lincoln National Corp. + 31,300 538,673
MetLife, Inc. 5,100 153,051
Morgan Stanley 3,400 96,934
Torchmark Corp. 3,800 140,752
- --------------------------------------------------------------------------------
3,704,945
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 17.6%
Alcatel-Lucent - ADR* 149,300 370,264
Arrow Electronics, Inc.* 10,900 231,516
Avnet, Inc.* 9,400 197,682
Dell, Inc.* 27,300 374,829
Lam Research Corp.* + 14,000 364,000
Motorola, Inc.* 59,200 392,496
Novellus Systems, Inc.* + 2,800 46,760
- --------------------------------------------------------------------------------
1,977,547
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 14.0%
Centex Corp.* 39,300 332,478
D R Horton, Inc. 10,400 97,344
J.C. Penney Co., Inc. 7,500 215,325
Magna International, Inc. - Class A* 10,700 451,968
Pulte Homes, Inc.* + 30,500 269,315
Ryland Group, Inc. + 12,400 208,320
- --------------------------------------------------------------------------------
1,574,750
- --------------------------------------------------------------------------------
UTILITIES -- 10.0%
Allegheny Energy, Inc. + 8,100 207,765
Mirant Corp.* 17,500 275,450
RRI Energy, Inc.* 127,100 636,771
- --------------------------------------------------------------------------------
1,119,986
- --------------------------------------------------------------------------------
ENERGY -- 8.8%
Chesapeake Energy Corp. 31,000 614,730
Nabors Industries Ltd.* + 17,600 274,208
XTO Energy, Inc. 2,600 99,164
- --------------------------------------------------------------------------------
988,102
- --------------------------------------------------------------------------------
INDUSTRIALS -- 5.0%
Navistar International Corp.* 12,800 558,080
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.3%
Sprint Nextel Corp.* 77,800 374,218
- --------------------------------------------------------------------------------
MISCELLANEOUS -- 3.1%
iShares Dow Jones
US Home Construction+ 9,700 95,060
iShares Russell 1000 Value Index 5,200 247,520
- --------------------------------------------------------------------------------
342,580
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 0.5%
Tyson Foods, Inc. - Class A+ 4,100 51,701
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 10,691,909
- --------------------------------------------------------------------------------
INVESTMENT FUNDS -- 26.0%
Invesco AIM Liquid Assets Portfolio** 2,075,288 2,075,288
Touchstone Institutional
Money Market Fund^ 843,898 843,898
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUNDS $ 2,919,186
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 122.5%
(Cost $13,842,651) $ 13,737,096
LIABILITIES IN EXCESS OF OTHER ASSETS -- (22.5%) (2,526,952)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 11,210,144
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
+ All or a portion of the security is on loan. The total value of securities
on loan as of June 30, 2009, was $2,005,802.
** Represents collateral for securities loaned.
ADR American Depository Receipt.
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the Security Valuation section in the accompanying Notes
to Financial Statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stock $ 10,691,909 $ -- $ -- $ 10,691,909
Preferred Stock 126,001 -- -- 126,001
Mutual Fund 2,919,186 -- -- 2,919,186
---------------------------------------------------------
$13,737,096
See accompanying notes to financial statements.
20
- --------------------------------------------------------------------------------
Portfolio of Investments
JSAM Institutional Value Fund - June 30, 2009 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 97.7% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 34.4%
Bank of America Corp. 33,490 $ 442,068
Capital One Financial Corp. + 18,700 409,156
Chimera Investment Corp. 6,700 23,383
CIT Group, Inc.* 14,400 30,960
Genworth Financial, Inc. - Class A* 57,586 402,526
Hartford Financial Services Group, Inc. + 25,700 305,059
JPMorgan Chase & Co. 1,800 61,398
Lincoln National Corp. + 19,500 335,595
MetLife, Inc. 3,500 105,035
Morgan Stanley 2,400 68,424
Oriental Financial Group, Inc. 20,600 199,820
Protective Life Corp. + 11,900 136,136
- --------------------------------------------------------------------------------
2,519,560
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 20.4%
Cavalier Homes, Inc.* 8,600 23,478
Centex Corp.* 26,000 219,960
Champion Enterprises, Inc.* 14,000 4,480
Cooper Tire & Rubber Co. + 13,700 135,904
D R Horton, Inc. 7,400 69,264
J.C. Penney Co., Inc. 5,300 152,163
Libbey, Inc.* + 71,900 101,379
Liz Claiborne, Inc.* 3,000 8,640
Magna International, Inc. - Class A*+ 7,700 325,248
Office Depot, Inc.* 37,100 169,176
Pulte Homes, Inc.* + 16,200 143,046
Ryland Group, Inc. + 8,500 142,800
- --------------------------------------------------------------------------------
1,495,538
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 16.9%
Alcatel-Lucent - ADR* 96,700 239,816
Alliance Semiconductor Corp. 50,100 16,032
Arrow Electronics, Inc.* 7,400 157,176
Avnet, Inc.* 7,300 153,519
Dell, Inc.* 6,500 89,245
Lam Research Corp.* + 10,300 267,800
Motorola, Inc.* 42,100 279,123
Novellus Systems, Inc.* + 1,900 31,730
- --------------------------------------------------------------------------------
1,234,441
- --------------------------------------------------------------------------------
ENERGY -- 11.0%
Chesapeake Energy Corp. 19,500 386,685
Forest Oil Corp.* 10,200 152,184
Nabors Industries Ltd.* + 12,400 193,192
XTO Energy, Inc. 1,800 68,652
- --------------------------------------------------------------------------------
800,713
- --------------------------------------------------------------------------------
INDUSTRIALS -- 7.1%
Hudson Highland Group, Inc.* 87,600 171,696
Navistar International Corp.* 7,900 344,440
- --------------------------------------------------------------------------------
516,136
- --------------------------------------------------------------------------------
UTILITIES -- 5.7%
RRI Energy, Inc.* 82,900 415,329
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.7%
Sprint Nextel Corp.* 25,100 120,731
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 0.5%
Tyson Foods, Inc. - Class A+ 3,000 37,830
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 7,140,278
- --------------------------------------------------------------------------------
INVESTMENT FUNDS -- 27.0%
Invesco AIM Liquid Assets Portfolio** 1,854,864 1,854,864
Touchstone Institutional
Money Market Fund^ 118,142 118,142
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUNDS $ 1,973,006
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 124.7%
(Cost $13,187,631) $ 9,113,284
LIABILITIES IN EXCESS OF OTHER ASSETS -- (24.7%) (1,807,639)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 7,305,645
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
+ All or a portion of the security is on loan. The total value of securities
on loan as of June 30, 2009, was $1,821,026.
** Represents collateral for securities loaned.
ADR American Depository Receipt.
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the Security Valuation section in the accompanying Notes
to Financial Statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stock $ 7,140,278 $ -- $ -- $ 7,140,278
Mutual Fund 1,973,006 -- -- 1,973,006
---------------------------------------------------------
$ 9,113,284
See accompanying notes to financial statements.
21
- --------------------------------------------------------------------------------
Portfolio of Investments
Mazama Institutional Growth Fund - June 30, 2009 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
PREFERRED STOCK -- 0.4% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 0.4%
East West Bancorp, Inc. 128 $ 74,400
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.6%
CONSUMER DISCRETIONARY -- 21.9%
Abercrombie & Fitch Co. - Class A 1,600 40,624
Apollo Group, Inc.* 2,500 177,800
Bed Bath & Beyond, Inc.* 4,900 150,675
Best Buy Co., Inc. + 3,100 103,819
Chico's FAS, Inc.* 29,800 289,954
Chipotle Mexican Grill, Inc. - Class A*+ 1,850 148,000
Coach, Inc. + 21,000 564,479
D R Horton, Inc. 3,800 35,568
Deckers Outdoor Corp.* 5,725 402,296
Dick's Sporting Goods, Inc.* 16,400 282,080
Dollar Tree, Inc.* 1,100 46,310
Expedia, Inc.* 2,000 30,220
Guess?, Inc. 6,200 159,836
New Oriental Education &
Technology Group*+ 1,285 86,558
Polo Ralph Lauren Corp. 1,900 101,726
Priceline.com, Inc.* 400 44,620
Ross Stores, Inc. 1,200 46,320
Starbucks Corp.* + 17,300 240,297
Strayer Education, Inc. 565 123,232
Tiffany & Co. 8,200 207,952
TJX Cos., Inc. + 2,500 78,650
Urban Outfitters, Inc.* + 10,400 217,048
Yum! Brands, Inc. 5,000 166,700
- --------------------------------------------------------------------------------
3,744,764
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 21.4%
Activision Blizzard, Inc.* 18,100 228,603
Agilent Technologies, Inc.* + 8,400 170,604
Broadcom Corp. - Class A* 6,000 148,740
Cognizant Technology Solutions Corp.* 4,750 126,825
Cree, Inc.* 4,100 120,499
Flextronics International Ltd.* 47,100 193,581
Immersion Corp.* 40,500 200,070
Intersile Corp. 6,900 86,733
Intuit, Inc.* 2,700 76,032
Juniper Networks, Inc.* 2,000 47,200
KLA-Tencor Corp. 2,600 65,650
Marvell Technology Group Ltd.* 16,500 192,060
Mastercard, Inc. - Class A+ 375 62,741
NVIDIA Corp.* 6,500 73,385
Paychex, Inc. 2,400 60,480
Polycom, Inc.* 7,365 149,289
Red Hat, Inc.* 17,400 350,262
Riverbed Technology, Inc.* 16,675 386,693
Salesforce.com, Inc.* 2,000 76,340
SanDisk Corp.* 4,800 70,512
Skyworks Solutions, Inc.* 15,700 153,546
TriQuint Semiconductor, Inc.* 102,100 542,150
Visa, Inc. - Class A+ 1,125 70,043
- --------------------------------------------------------------------------------
3,652,038
- --------------------------------------------------------------------------------
HEALTH CARE -- 20.9%
ABIOMED, Inc.* 40,300 355,446
Celgene Corp.* + 2,000 95,680
Cubist Pharmaceuticals, Inc.* 28,600 524,238
Express Scripts, Inc.* 3,100 213,125
Humana, Inc.* 4,900 158,074
Illumina, Inc.* + 10,985 427,756
Medarex, Inc.* 97,075 810,577
Metabolix, Inc.* 39,370 323,621
Mylan, Inc.* 12,100 157,905
Myriad Genetics, Inc.* 11,300 402,845
Myriad Pharmaceuticals, Inc.* 2,825 13,136
Waters Corp.* 1,600 82,352
- --------------------------------------------------------------------------------
3,564,755
- --------------------------------------------------------------------------------
FINANCIALS -- 14.4%
Blackstone Group L.P. (The) 66,000 695,640
CB Richard Ellis Group, Inc. - Class A* 5,600 52,416
Charles Schwab Corp. 10,400 182,416
East West Bancorp, Inc. 25,300 164,197
MSCI, Inc. - Class A* 7,100 173,524
NASDAQ OMX Group, Inc.* 32,100 684,051
T. Rowe Price Group, Inc. 2,800 116,676
UCBH Holdings, Inc. + 186,200 234,612
Zions Bancorp. + 12,700 146,812
- --------------------------------------------------------------------------------
2,450,344
- --------------------------------------------------------------------------------
INDUSTRIALS -- 8.6%
CH Robinson Worldwide, Inc. + 3,300 172,095
Evergreen Solar, Inc.* + 80,100 173,817
Expeditors International of
Washington, Inc. 3,750 125,025
First Solar, Inc.* 1,225 198,597
Jacobs Engineering Group, Inc.* 3,100 130,479
Precision Castparts Corp. 1,750 127,803
Quanta Services, Inc.* + 7,500 173,475
Stericycle, Inc.* 400 20,612
SunPower Corp. - Class A*+ 13,225 352,314
- --------------------------------------------------------------------------------
1,474,217
- --------------------------------------------------------------------------------
ENERGY -- 5.0%
Atwood Oceanics, Inc.* 5,500 137,005
Continental Resources, Inc.* 4,500 124,875
FMC Technologies, Inc.* + 4,600 172,868
Noble Corp. 3,500 105,875
Range Resources Corp. 3,300 136,653
Southwestern Energy Co.* 2,100 81,585
Superior Energy Services, Inc.* 5,210 89,977
- --------------------------------------------------------------------------------
848,838
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.8%
American Tower Corp. - Class A* 2,100 66,213
Clearwire Corp. - Class A*+ 53,000 293,090
NII Holdings, Inc.* 15,100 287,957
- --------------------------------------------------------------------------------
647,260
- --------------------------------------------------------------------------------
22
- --------------------------------------------------------------------------------
Mazama Institutional Growth Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 98.6% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 2.6%
Avon Products, Inc. + 6,800 $ 175,304
Church & Dwight Co., Inc. 1,100 59,741
Mead Johnson Nutrition Co. - Class A 1,600 50,832
Whole Foods Market, Inc.* + 7,900 149,942
- --------------------------------------------------------------------------------
435,819
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 16,818,035
- --------------------------------------------------------------------------------
INVESTMENT FUNDS -- 20.3%
Invesco AIM Liquid Assets Portfolio** 3,238,797 3,238,797
Touchstone Institutional
Money Market Fund^ 220,016 220,016
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUNDS $ 3,458,813
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 119.3%
(Cost $20,204,302) $ 20,351,248
LIABILITIES IN EXCESS OF OTHER ASSETS -- (19.3%) (3,290,160)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 17,061,088
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
+ All or a portion of the security is on loan. The total value of securities
on loan as of June 30, 2009, was $3,141,152.
** Represents collateral for securities loaned.
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the Security Valuation section in the accompanying Notes
to Financial Statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stock $ 16,818,035 $ -- $ -- $ 16,818,035
Preferred Stock 74,400 -- -- 74,400
Mutual Fund 3,458,813 -- -- 3,458,813
---------------------------------------------------------
$ 20,351,248
See accompanying notes to financial statements.
23
- --------------------------------------------------------------------------------
Portfolio of Investments
Sands Capital Institutional Growth Fund - June 30, 2009 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 99.1% SHARES VALUE
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 31.3%
Apple, Inc.* 425,850 $ 60,653,816
Broadcom Corp. - Class A* 1,007,900 24,985,841
Google, Inc. - Class A* 105,000 44,266,950
QUALCOMM, Inc. 696,900 31,499,880
Salesforce.com, Inc.* + 638,400 24,367,728
Visa, Inc. - Class A 614,800 38,277,448
VMware, Inc.* 327,600 8,933,652
- --------------------------------------------------------------------------------
232,985,315
- --------------------------------------------------------------------------------
HEALTH CARE -- 21.7%
Abraxis BioScience, Inc.* 93,675 3,452,861
Allergan, Inc. 691,300 32,892,054
Genzyme Corp.* 708,900 39,464,463
Intuitive Surgical, Inc.* 237,700 38,901,982
Mindray Medical International Ltd. 508,600 14,200,112
Stryker Corp. 359,500 14,286,530
Varian Medical Systems, Inc.* 531,700 18,683,938
- --------------------------------------------------------------------------------
161,881,940
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 13.9%
Amazon.com, Inc.* + 550,200 46,029,732
Las Vegas Sands Corp.* 2,891,126 22,724,250
NIKE, Inc. - Class B 285,600 14,788,368
Starbucks Corp.* 1,444,700 20,066,883
- --------------------------------------------------------------------------------
103,609,233
- --------------------------------------------------------------------------------
ENERGY -- 13.8%
FMC Technologies, Inc.* + 713,100 26,798,298
National Oilwell Varco, Inc.* 1,312,040 42,851,226
Schlumberger Ltd. 611,500 33,088,265
- --------------------------------------------------------------------------------
102,737,789
- --------------------------------------------------------------------------------
FINANCIALS -- 10.2%
CME Group, Inc. - Class A+ 76,400 23,768,804
IntercontinentalExchange, Inc.* 347,720 39,723,533
Moody's Corp. + 467,900 12,329,165
- --------------------------------------------------------------------------------
75,821,502
- --------------------------------------------------------------------------------
MATERIALS -- 3.6%
Monsanto Co. 358,700 26,665,758
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.0%
America Movil S.A. - ADR 575,400 22,279,488
- --------------------------------------------------------------------------------
INDUSTRIALS -- 1.6%
Iron Mountain, Inc.* + 418,300 12,026,125
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 738,007,150
- --------------------------------------------------------------------------------
INVESTMENT FUNDS -- 10.5%
Invesco AIM Liquid Assets Portfolio** 69,624,741 69,624,741
Touchstone Institutional
Money Market Fund^ 8,421,206 8,421,206
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUNDS $ 78,045,947
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 109.6%
(Cost $924,347,570) $ 816,053,097
LIABILITIES IN EXCESS OF OTHER ASSETS -- (9.6%) (71,669,517)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 744,383,580
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
+ All or a portion of the security is on loan. The total value of securities
on loan as of June 30, 2009, was $67,667,977.
** Represents collateral for securities loaned.
ADR American Depository Receipt.
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the Security Valuation section in the accompanying Notes
to Financial Statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stock $738,007,150 $ -- $ -- $738,007,150
Mutual Fund 78,045,947 -- -- 78,045,947
---------------------------------------------------------
$816,053,097
See accompanying notes to financial statements.
24
- --------------------------------------------------------------------------------
Other Items (Unaudited)
- --------------------------------------------------------------------------------
PROXY VOTING
The Sub-Advisors are responsible for exercising the voting rights associated
with the securities purchased and held by the Funds. A description of the
policies and procedures that the Sub-Advisors use in fulfilling this
responsibility and information regarding how those proxies were voted during the
twelve month period ended June 30 are available without charge upon request by
calling toll free 1.800.543.0407. These items are also available on the
Securities and Exchange Commission's (the Commission) website at
http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The Trust files a complete listing of portfolio holdings for each Fund as of the
end of the first and third quarters of each fiscal year on Form N-Q. The
complete listing (i) is available on the Commission's website; (ii) may be
reviewed and copied at the Commission's Public Reference Room in Washington, DC;
and (iii) will be made available to shareholders upon request by calling
1.800.543.0407. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
SCHEDULE OF SHAREHOLDER EXPENSES
As a shareholder of the Funds, you incur two types of costs: (1) transaction
costs, including reinvested dividends or other distributions; and (2) ongoing
costs, including investment advisory fees; distribution (12b-1) fees; and other
Fund expenses. This example is intended to help you understand your ongoing
costs (in dollars) of investing in the Funds and to compare these costs with the
ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (January 1, 2009 through June 30, 2009).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During the Six
Months Ended June 30, 2009" to estimate the expenses you paid on your account
during this period.
25
- --------------------------------------------------------------------------------
Other Items (Continued)
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Funds' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Funds' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
EXPENSES
NET EXPENSE BEGINNING ENDING PAID DURING
RATIO ACCOUNT ACCOUNT THE SIX MONTHS
ANNUALIZED VALUE VALUE ENDED
JUNE 30, JANUARY 1, JUNE 30, JUNE 30,
2009 2009 2009 2009*
- ---------------------------------------------------------------------------------------------------------
JSAM INSTITUTIONAL LARGE CAP VALUE FUND
Actual 0.73% $ 1,000.00 $ 1,335.60 $ 4.23
Hypothetical 0.73% $ 1,000.00 $ 1,021.17 $ 3.66
JSAM INSTITUTIONAL VALUE FUND
Actual 0.83% $ 1,000.00 $ 1,295.00 $ 4.74
Hypothetical 0.83% $ 1,000.00 $ 1,020.67 $ 4.17
MAZAMA INSTITUTIONAL GROWTH FUND
Actual 0.98% $ 1,000.00 $ 1,218.30 $ 5.37
Hypothetical 0.98% $ 1,000.00 $ 1,019.95 $ 4.89
SANDS CAPITAL INSTITUTIONAL GROWTH FUND
Actual 0.80% $ 1,000.00 $ 1,278.50 $ 4.51
Hypothetical 0.80% $ 1,000.00 $ 1,020.83 $ 4.00
* Expenses are equal to the Fund's annualized expense ratio, multiplied by
the average account value over the period, multiplied by [number of days
in most recent fiscal half-year/365 [or 366]] (to reflect the one-half
year period).
26
TOUCHSTONE INVESTMENTS
DISTRIBUTOR
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
800.638.8194
www.touchstoneinvestments.com
INVESTMENT ADVISOR
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
TRANSFER AGENT
JPMorgan Chase Bank, N.A.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
SHAREHOLDER SERVICE
800.543.0407
* A Member of Western & Southern Financial Group
[LOGO] TOUCHSTONE(R)
INVESTMENTS
303 Broadway, Suite 1100
Cincinnati, OH 45202-4203
- --------------------------------------------------------------------------------
[LOGO] eDelivery
Go paperless, sign up today at:
www.touchstoneinvestments.com/home
TSF-1105-TIFT-SAR-0906
ITEM 2. CODE OF ETHICS.
Not required in semi-annual report filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required in semi-annual report filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required in semi-annual report filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
The Schedule of Investments in securities of unaffiliated issuers is included in
the Semiannual Report.
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.
The Governance Committee will consider shareholder recommendations for
nomination to the Board only in the event that there is a vacancy on the Board.
Shareholders who wish to submit recommendations for nominations to the Board to
fill the vacancy must submit their recommendations in writing to John P.
Zanotti, Chairman of the Governance Committee, c/o Touchstone, 303 Broadway,
Suite 1100, Cincinnati, OH 45202. Shareholders should include appropriate
information on the background and qualifications of any person recommended to
the Governance Committee (e.g., a resume), as well as the candidate's contact
information and a written consent from the candidate to serve if nominated and
elected. Shareholder recommendations for nominations to the Board will be
accepted on an ongoing basis and such recommendations will be kept on file for
consideration in the event of a future vacancy on the Board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the 1940 Act) the registrant's
principal executive officer and principal financial officer have concluded that
the registrant's disclosure controls and procedures are effective as of a date
within 90 days of the filing date of this report.
(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) that occurred during
the registrant's second fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable in semiannual filing.
(a)(2) Certifications required by Item 12(a)(2) of Form N-CSR are filed
herewith.
(b) Certification required by Item 11(b) of Form N-CSR is filed
herewith.
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 Institutional Funds Trust
-------------------------------------------------------
By (Signature and Title) /s/ Jill McGruder
-------------------------------------------
Jill McGruder, President
(principal executive officer)
Date August 18, 2009
---------------
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 McGruder
-------------------------------------------
Jill McGruder, President
(principal executive officer)
Date August 18, 2009
---------------
By (Signature and Title) /s/ Terrie Wiedenheft
-------------------------------------------
Terrie Wiedenheft, Controller and Treasurer
(principal financial officer)
Date August 18, 2009
---------------