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
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Date of reporting period: 06/30/10
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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.
The Report to Shareholders is attached herewith.
================================================================================
June 30, 2010
(Unaudited)
Semi-Annual Report
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TOUCHSTONE INSTITUTIONAL FUNDS TRUST
Touchstone Mazama Institutional Growth Fund
Touchstone Sands Capital Institutional Growth Fund
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[LOGO] Touchstone Investments(R)
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Table of Contents
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Page
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 8-9
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Notes to Financial Statements 10-15
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Portfolios of Investments:
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Touchstone Mazama Institutional Growth Fund 16-17
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Touchstone Sands Capital Institutional Growth Fund 18
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Other Items 19-20
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Privacy Protection Policy 21
2
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Tabular Presentation of Portfolios of Investments (Unaudited)
June 30, 2010
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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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TOUCHSTONE MAZAMA INSTITUTIONAL GROWTH FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 26.0
Consumer Discretionary 22.9
Health Care 14.5
Industrials 12.7
Financials 10.6
Consumer Staples 3.9
Energy 3.8
Telecommunication Services 2.8
Materials 2.3
Investment Funds 10.1
Other Assets/Liabilities (Net) (9.6)
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TOTAL 100.0
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TOUCHSTONE SANDS CAPITAL INSTITUTIONAL GROWTH FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 36.9
Health Care 20.3
Consumer Discretionary 16.9
Energy 12.0
Financials 8.9
Industrials 3.9
Investment Funds 0.7
Other Assets/Liabilities (Net) 0.4
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TOTAL 100.0
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3
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Statements of Assets and Liabilities
June 30, 2010 (Unaudited)
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TOUCHSTONE TOUCHSTONE
MAZAMA SANDS CAPITAL
INSTITUTIONAL INSTITUTIONAL
GROWTH GROWTH
FUND FUND
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ASSETS
Investment securities:
At cost $ 19,348,161 $ 832,396,997
==========================================================================================================
Affiliated securities, at market value $ 130,368 $ 6,804,309
Non-affiliated securities, at market value 18,512,219 899,468,809
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At market value - including $1,537,611 of securities loaned
for the Mazama Institutional Growth Fund. $ 18,642,587 $ 906,273,118
Dividends and interest receivable 10,518 387,788
Receivable for capital shares sold 5,809 2,058,705
Receivable for securities sold 138,971 3,167,249
Receivable for securities lending income 6,394 11
Other assets 4,456 56,745
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TOTAL ASSETS 18,808,735 911,943,616
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LIABILITIES
Payable upon return of securities loaned 1,583,376 --
Dividends payable 5,809 --
Payable for capital shares redeemed -- 1,019,995
Payable for securities purchased 187,852 --
Payable to Advisor 14,417 619,686
Other accrued expenses and liabilities 2,093 8,775
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TOTAL LIABILITIES 1,793,547 1,648,456
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NET ASSETS $ 17,015,188 $ 910,295,160
==========================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 19,637,338 $ 976,927,589
Accumulated net investment income (loss) 80,167 (1,236,279)
Accumulated net realized losses on investments (1,996,743) (139,272,271)
Net unrealized appreciation (depreciation) on investments (705,574) 73,876,121
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NET ASSETS $ 17,015,188 $ 910,295,160
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Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 2,153,750 87,331,019
==========================================================================================================
Net asset value, offering price and redemption price per share $ 7.90 $ 10.42
==========================================================================================================
See accompanying notes to financial statements.
4
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Statements of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
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TOUCHSTONE TOUCHSTONE
MAZAMA SANDS CAPITAL
INSTITUTIONAL INSTITUTIONAL
GROWTH GROWTH
FUND FUND
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INVESTMENT INCOME
Dividends from affiliated securities $ 221 $ 20,102
Dividends from non-affiliated securities 86,274 2,630,031
Income from securities loaned 21,839 1,180
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TOTAL INVESTMENT INCOME 108,334 2,651,313
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EXPENSES
Unified management fee 98,155 3,835,111
Registration fees 827 35,592
Miscellaneous expenses 1,810 16,889
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TOTAL EXPENSES 100,792 3,887,592
NET INVESTMENT INCOME (LOSS) 7,542 (1,236,279)
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REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions 2,845,236 15,938,347
Net change in unrealized appreciation/(depreciation) on investments (4,763,895) (76,090,949)
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NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS (1,918,659) (60,152,602)
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NET DECREASE IN NET ASSETS FROM OPERATIONS $ (1,911,117) $ (61,388,881)
============================================================================================================
See accompanying notes to financial statements.
5
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Statements of Changes in Net Assets
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TOUCHSTONE
MAZAMA
INSTITUTIONAL
GROWTH
FUND
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SIX MONTHS
ENDED YEAR
JUNE 30, ENDED
2010 DECEMBER 31,
(UNAUDITED) 2009
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FROM OPERATIONS
Net investment income $ 7,542 $ 8,128
Net realized gains (losses) from security transactions 2,845,236 (778,070)
Net change in unrealized appreciation/(depreciation) on investments (4,763,895) 9,266,347
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NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (1,911,117) 8,496,405
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DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (5,809) --
From tax return of capital -- (8,677)
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DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (5,809) (8,677)
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FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 482,720 802,447
Reinvested distributions -- 8,678
Payments for shares redeemed (4,116,821) (187,148)
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NET INCREASE (DECREASE) IN NET ASSETS FROM SHARE TRANSACTIONS (3,634,101) 623,977
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TOTAL INCREASE (DECREASE) IN NET ASSETS (5,551,027) 9,111,705
NET ASSETS
Beginning of period 22,566,215 13,454,510
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End of period $ 17,015,188 $ 22,566,215
==============================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ 80,167 $ 78,434
==============================================================================================================
See accompanying notes to financial statements.
6
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Statements of Changes in Net Assets (Continued)
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TOUCHSTONE
SANDS CAPITAL
INSTITUTIONAL
GROWTH
FUND
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SIX MONTHS
ENDED YEAR
JUNE 30, ENDED
2010 DECEMBER 31,
(UNAUDITED) 2009
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FROM OPERATIONS
Net investment loss $ (1,236,279) $ (1,047,820)
Net realized gains (losses) from security transactions 15,938,347 (52,373,740)
Net change in unrealized appreciation/(depreciation) on investments (76,090,949) 477,762,223
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NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (61,388,881) 424,340,663
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FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 130,275,746 267,089,340
Payments for shares redeemed (162,489,056) (279,090,089)
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NET DECREASE IN NET ASSETS FROM SHARE TRANSACTIONS (32,213,310) (12,000,749)
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TOTAL INCREASE (DECREASE) IN NET ASSETS (93,602,191) 412,339,914
NET ASSETS
Beginning of period 1,003,897,351 591,557,437
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End of period $ 910,295,160 $ 1,003,897,351
==============================================================================================================
ACCUMULATED NET INVESTMENT LOSS $ (1,236,279) $ --
==============================================================================================================
See accompanying notes to financial statements.
7
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Financial Highlights
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TOUCHSTONE MAZAMA INSTITUTIONAL GROWTH FUND
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
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SIX MONTHS
ENDED YEAR PERIOD
JUNE 30, ENDED ENDED
2010 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 2009 2008(A)
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Net asset value at beginning of period $ 8.87 $ 5.55 $ 10.00
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Income (loss) from investment operations:
Net investment income 0.01 0.00(B) 0.05
Net realized and unrealized gains (losses) on investments (0.98) 3.32 (4.45)
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Total from investment operations (0.97) 3.32 (4.40)
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Less distributions:
Dividends from net investment income (0.00)(B) -- (0.05)
Tax return of capital -- (0.00)(B) --
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Total distributions (0.00)(B) (0.00)(B) (0.05)
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Net asset value at end of period $ 7.90 $ 8.87 $ 5.55
=========================================================================================================================
Total return (10.91%)(C) 59.89% (44.13%)(C)
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Net assets at end of period (000's) $ 17,015 $ 22,566 $ 13,455
=========================================================================================================================
Ratio of net expenses to average net assets 0.98%(D) 0.98% 0.98%(D)
Ratio of gross expenses to average net assets 0.98%(D) 0.98% 0.99%(D)
Ratio of net investment income to average net assets 0.07%(D) 0.05% 0.70%(D)
Portfolio turnover rate 60%(C) 124% 200%(C)
(A) Represents the period from commencement of operations (January 30, 2008)
through December 31, 2008.
(B) Amount rounds to less than $0.005.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
8
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Financial Highlights (Continued)
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TOUCHSTONE 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
2010 ---------------------------------------------------------- DECEMBER 31,
(UNAUDITED) 2009 2008 2007 2006 2005(A)
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Net asset value at beginning of
period $ 11.12 $ 6.50 $ 13.18 $ 11.10 $ 11.79 $ 10.00
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Income (loss) from investment
operations:
Net investment loss (0.01) (0.01) (0.04) (0.04) (0.04) (0.02)
Net realized and unrealized gains
(losses) on investments (0.69) 4.63 (6.35) 2.12 (0.65) 1.81
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Total from investment operations (0.70) 4.62 (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 $ 10.42 $ 11.12 $ 6.50 $ 13.18 $ 11.10 $ 11.79
====================================================================================================================================
Total return (6.29%)(B) 71.08% (48.45%) 18.74% (5.85%) 17.90%(B)
====================================================================================================================================
Net assets at end of period (000's) $ 910,295 $ 1,003,897 $ 591,557 $ 1,375,494 $ 1,234,451 $ 615,503
====================================================================================================================================
Ratio of net expenses to average
net assets 0.79%(C) 0.80% 0.80% 0.80% 0.80% 0.79%(C)
Ratio of net investment loss to
average net assets (0.25%)(C) (0.13%) (0.37%) (0.31%) (0.44%) (0.45%)(C)
Portfolio turnover rate 11%(B) 34% 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.
9
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Notes to Financial Statements
June 30, 2010 (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 two funds. The financial statements
included herein are those of the Touchstone Mazama Institutional Growth Fund,
which is a diversified fund, and Touchstone Sands Capital Institutional Growth
Fund, which is a non-diversified fund (each individually a "Fund" and
collectively the "Funds"). The Funds commenced operations on 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 FASB ASC 820 "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. Fair Value Measurements applies to fair value
measurements already required or permitted by existing standards. The changes to
current generally accepted accounting principles (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)
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.
10
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Notes to Financial Statements (Continued)
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The aggregate value by input level, as of June 30, 2010, for each Fund's
investments, is included in each Fund's Portfolio of Investments, which also
includes a breakdown of the Fund's investments by geographic/industry
concentration.
NEW ACCOUNTING PRONOUNCEMENTS -- In January 2010, the Financial Accounting
Standards Board ("FASB") issued new guidance as an amendment to fair value
measurements and disclosures. The new guidance adds new requirements for
disclosure about transfers into and out of level 1 and level 2 fair value
measurements and separate disclosures about purchases, sales, issuances, and
settlements relating to level 3 measurements. The guidance also clarifies
existing fair value disclosures about the level of disaggregation and about
inputs and valuation techniques in level 2 and level 3 fair value measurements.
The amendment is effective for interim and annual reporting periods beginning
after December 15, 2009, except for Level 3 reconciliation disclosures which are
effective for interim and annual periods beginning after December 15, 2010. The
Funds do not expect the implications of this guidance to have a material impact
on its financial statements.
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, 2010, the following Funds loaned common stocks and received
collateral as follows:
MARKET VALUE VALUE OF
OF COMMON COLLATERAL
STOCKS LOANED RECEIVED
- --------------------------------------------------------------------------------
Touchstone Mazama Institutional Growth Fund $ 1,537,611 $ 1,583,376
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.
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.
11
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Notes to Financial Statements (Continued)
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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.
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, 2010:
TOUCHSTONE TOUCHSTONE
MAZAMA SANDS CAPITAL
INSTITUTIONAL INSTITUTIONAL
GROWTH GROWTH
FUND FUND
- --------------------------------------------------------------------------------
Cost of purchases $ 12,148,700 $ 104,210,509
Proceeds from sales $ 15,744,636 $ 141,659,722
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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).
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, 2010, is noted below:
SHARE ACTIVITY
----------------------------------------------------------
BALANCE BALANCE VALUE
12/31/09 PURCHASES SALES 06/30/10 DIVIDENDS 06/30/10
- ------------------------------------------------------------------------------------------------------------------------------------
Touchstone Mazama Institutional Growth Fund 222,708 2,717,532 (2,809,872) 130,368 $ 221 $ 130,368
Touchstone Sands Capital Institutional
Growth Fund 13,225,243 103,889,434 (110,310,368) 6,804,309 $ 20,102 $ 6,804,309
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12
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Notes to Financial Statements (Continued)
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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 0.95% and 0.78% per annum of the average daily net assets of the
Touchstone Mazama Institutional Growth Fund and the Touchstone 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.
Mazama Capital Management, Inc. ("Mazama"), an 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, an 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.
EXPENSE LIMITATION AGREEMENT -- The Trust and the Advisor entered into an
Expense Limitation Agreement to contractually limit operating expenses of the
Touchstone Mazama Institutional Growth Fund and the Touchstone 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
29, 2011:
- --------------------------------------------------------------------------------
Touchstone Mazama Institutional Growth Fund 0.98%
Touchstone 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:
TOUCHSTONE TOUCHSTONE
MAZAMA SANDS CAPITAL
INSTITUTIONAL GROWTH INSTITUTIONAL GROWTH
FUND FUND
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
JUNE 30, 2010 DECEMBER 31, JUNE 30, 2010 DECEMBER 31,
(UNAUDITED) 2009 (UNAUDITED) 2009
- ---------------------------------------------------------------------------------------------------------------------
Shares sold 49,723 144,371 11,597,960 32,434,529
Shares reinvested -- 1,162 -- --
Shares redeemed (440,015) (27,115) (14,540,262) (33,203,542)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding (390,292) 118,418 (2,942,302) (769,013)
Shares outstanding, beginning of period 2,544,042 2,425,624 90,273,321 91,042,334
- ---------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 2,153,750 2,544,042 87,331,019 90,273,321
=====================================================================================================================
13
- --------------------------------------------------------------------------------
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, 2009
and 2008 was as follows:
TOUCHSTONE TOUCHSTONE
MAZAMA INSTITUTIONAL SANDS CAPITAL INSTITUTIONAL
GROWTH FUND GROWTH FUND
- -------------------------------------------------------------------------------------------------
2009 2008 2009 2008
- -------------------------------------------------------------------------------------------------
From ordinary income $ -- $ 98,683 $ -- $ --
From long-term capital gains -- -- -- 25,298,914
From tax return of capital 8,677 -- -- --
- -------------------------------------------------------------------------------------------------
$ 8,677 $ 98,683 $ -- $ 25,298,914
- -------------------------------------------------------------------------------------------------
The following information is computed on a tax basis for each item as of
December 31, 2009:
TOUCHSTONE TOUCHSTONE
MAZAMA SANDS CAPITAL
INSTITUTIONAL INSTITUTIONAL
GROWTH FUND GROWTH FUND
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Tax cost of portfolio investments $ 24,988,335 $ 913,766,989
================================================================================
Gross unrealized appreciation 4,389,005 193,920,779
Gross unrealized depreciation (924,099) (85,547,913)
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Net unrealized appreciation 3,464,906 108,372,866
Post-October losses -- --
Capital loss carryforward (4,170,130) (113,616,414)
Other temporary differences -- --
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Accumulated deficit $ (705,224) $ (5,243,548)
================================================================================
The difference between the tax cost of portfolio investments and the financial
statement cost is primarily due to wash sales.
As of December 31, 2009, the Funds had the following capital loss carryforwards
for federal income tax purposes.
EXPIRES
FUND AMOUNT DECEMBER 31,
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Touchstone Mazama Institutional Growth Fund $ 881,641 2016
3,288,489 2017
--------------
$ 4,170,130
--------------
Touchstone Sands Capital Institutional Growth Fund $ 3,211,909 2016
110,404,505 2017
--------------
$ 113,616,414
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14
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Notes to Financial Statements (Continued)
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The capital loss carryforwards may be utilized in 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 return of
capital distributions, investments in limited partnerships and net investment
loss have been made to the following Funds for the year ended December 31, 2009:
UNDISTRIBUTED ACCUMULATED
PAID-IN NET INVESTMENT NET REALIZED
CAPITAL INCOME GAINS
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Touchstone Mazama Institutional Growth Fund $ (78,983) $ 78,983 $ --
Touchstone Sands Capital Institutional Growth Fund (1,047,820) 1,047,820 --
For the six months ended June 30, 2010, the Trust had the following federal tax
cost resulting in net unrealized appreciation (depreciation) as follows:
NET
GROSS GROSS UNREALIZED
FEDERAL UNREALIZED UNREALIZED APPRECIATION
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
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Touchstone Mazama Institutional Growth Fund $ 20,023,587 $ 1,189,400 $ (2,570,400) $ (1,381,000)
Touchstone Sands Capital Institutional Growth Fund $ 874,732,379 $ 126,037,760 $ (94,497,021) $ 31,540,739
The Funds have analyzed their tax positions taken on Federal income tax returns
for all open tax years (tax years ended December 31, 2006 through 2009) and have
concluded that no provision for income tax is required in their financial
statements.
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
During a meeting held August 19, 2010 of the Board of Trustees, the Trustees
unanimously approved the liquidation of the Mazama Institutional Growth Fund.
15
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Portfolio of Investments
Touchstone Mazama Institutional Growth Fund - June 30, 2010 (Unaudited)
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MARKET
COMMON STOCKS -- 99.5% SHARES VALUE
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INFORMATION TECHNOLOGY -- 26.0%
Agilent Technologies, Inc.* 9,790 $ 278,330
Akamai Technologies, Inc.* 2,080 84,386
Citrix Systems, Inc.* 2,125 89,739
Cognizant Technology Solutions
Corp. - Class A* 4,465 223,518
Cree, Inc.* 1,405 84,342
Intersil Corp. - Class A 26,260 318,009
KLA-Tencor Corp. 13,535 377,356
Marvell Technology Group Ltd.* 19,485 307,084
Mastercard, Inc. - Class A 1,755 350,175
NetApp, Inc.* 5,200 194,012
Novellus Systems, Inc.* 17,375 440,630
NVIDIA Corp.* 41,140 420,039
Paychex, Inc. 4,320 112,190
Red Hat, Inc.* 5,960 172,482
Salesforce.com, Inc.* 465 39,906
Skyworks Solutions, Inc.* 3,585 60,192
Teradyne, Inc.* 36,015 351,146
TriQuint Semiconductor, Inc.* 85,275 521,030
- --------------------------------------------------------------------------------
4,424,566
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 22.9%
Abercrombie & Fitch Co. - Class A 4,935 151,455
Bed Bath & Beyond, Inc.* 2,225 82,503
Best Buy Co., Inc. 10,230 346,388
Chico's FAS, Inc. 33,035 326,386
Chipotle Mexican Grill, Inc. - Class A* 820 112,184
Coach, Inc. 13,450 491,597
Deckers Outdoor Corp.* 1,795 256,452
Dick's Sporting Goods, Inc.* 4,795 119,348
Discovery Communications, Inc. - Class C* 2,020 62,479
Dollar Tree, Inc.* 1,418 59,011
DreamWorks Animation SKG, Inc. - Class A* 11,030 314,907
Express, Inc.* 17,830 291,877
Interpublic Group of Cos., Inc.* 11,420 81,425
J. Crew Group, Inc.* 5,535 203,743
Netflix, Inc.* 370 40,200
Nordstrom, Inc. 2,355 75,807
Orbitz Worldwide, Inc.* 60,580 230,810
priceline.com, Inc.* 895 158,003
Strayer Education, Inc. + 170 35,341
Tiffany & Co. 2,015 76,389
Tupperware Brands Corp. 6,725 267,991
Urban Outfitters, Inc.* 2,985 102,654
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3,886,950
- --------------------------------------------------------------------------------
HEALTH CARE -- 14.5%
Bruker Corp.* 19,770 240,403
Cephalon, Inc.* + 3,320 188,410
Cubist Pharmaceuticals, Inc.* 35,575 732,845
Dendreon Corp.* 4,955 160,195
Human Genome Sciences, Inc.* 4,995 113,187
Illumina, Inc.* 5,250 228,532
Myriad Genetics, Inc.* 31,270 467,487
Vertex Pharmaceuticals, Inc.* 5,500 180,950
Waters Corp.* 2,410 155,927
- --------------------------------------------------------------------------------
2,467,936
- --------------------------------------------------------------------------------
INDUSTRIALS -- 12.7%
CH Robinson Worldwide, Inc. 4,285 238,503
Clean Harbors, Inc.* 1,855 123,191
Expeditors International of Washington, Inc. 1,670 57,632
Flowserve Corp. 1,605 136,104
Fluor Corp. 1,770 75,225
Goodrich Corp. 2,545 168,606
JB Hunt Transport Services, Inc. 5,200 169,884
Joy Global, Inc. 2,845 142,506
Precision Castparts Corp. 1,470 151,292
Quanta Services, Inc.* 7,535 155,598
Robert Half International, Inc. 1,890 44,510
SunPower Corp. - Class A* + 21,525 260,452
Suntech Power Holdings Co. Ltd. ADR* + 37,220 341,307
URS Corp.* 2,625 103,294
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2,168,104
- --------------------------------------------------------------------------------
FINANCIALS -- 10.6%
Affiliated Managers Group, Inc.* 1,785 108,474
Blackstone Group LP 66,670 637,365
CBOE Holdings, Inc.* 6,740 219,387
Greenhill & Co., Inc. + 2,885 176,360
IntercontinentalExchange, Inc.* 470 53,124
Jefferies Group, Inc. + 11,745 247,585
MSCI, Inc. - Class A* 7,225 197,965
T Rowe Price Group, Inc. 3,535 156,919
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1,797,179
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 3.9%
Avon Products, Inc. 8,970 237,705
Church & Dwight Co., Inc. 615 38,567
H.J. Heinz Co. 5,365 231,875
Mead Johnson Nutrition Co. - Class A 885 44,356
Whole Foods Market, Inc.* + 3,000 108,060
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660,563
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ENERGY -- 3.8%
Continental Resources, Inc.* 3,090 137,876
FMC Technologies, Inc.* 4,650 244,869
Petrohawk Energy Corp.* 6,990 118,620
Range Resources Corp. 3,720 149,358
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650,723
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TELECOMMUNICATION SERVICES -- 2.8%
Clearwire Corp. - Class A* + 50,115 364,837
NII Holdings, Inc.* 3,505 113,983
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478,820
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16
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Touchstone Mazama Institutional Growth Fund (Continued)
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MARKET
COMMON STOCKS -- 99.5% (CONTINUED) SHARES VALUE
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MATERIALS -- 2.3%
CF Industries Holdings, Inc. 1,600 $ 101,520
Ecolab, Inc. 1,855 83,308
International Flavors & Fragrances, Inc. 3,390 143,804
Nalco Holding Co. 3,195 65,370
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394,002
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TOTAL COMMON STOCKS $ 16,928,843
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INVESTMENT FUNDS -- 10.1%
Invesco Liquid Assets Portfolio ** 1,583,376 1,583,376
Touchstone Institutional
Money Market Fund^ 130,368 130,368
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TOTAL INVESTMENT FUNDS $ 1,713,744
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TOTAL INVESTMENT SECURITIES -- 109.6%
(Cost $19,348,161) $ 18,642,587
LIABILITIES IN EXCESS OF OTHER ASSETS -- (9.6%) (1,627,399)
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NET ASSETS -- 100.0% $ 17,015,188
================================================================================
* 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 the
securities on loan as of June 30, 2010, was $1,537,611.
** Represents collateral for securities loaned.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $ 16,928,843 $ -- $ -- $ 16,928,843
Investment Funds 1,713,744 -- -- 1,713,744
============
$ 18,642,587
See accompanying notes to financial statements.
17
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Portfolio of Investments
Touchstone Sands Capital Institutional Growth Fund - June 30, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 98.9% SHARES VALUE
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 36.9%
Apple, Inc.* 311,250 $ 78,288,712
Broadcom Corp. - Class A 576,700 19,013,799
FLIR Systems, Inc.* 527,300 15,339,157
Google, Inc. - Class A* 101,400 45,117,930
QUALCOMM, Inc. 1,565,000 51,394,600
Salesforce.com, Inc.* 680,600 58,409,092
Visa, Inc. - Class A 727,300 51,456,475
VMware, Inc. - Class A* 266,586 16,685,618
- --------------------------------------------------------------------------------
335,705,383
- --------------------------------------------------------------------------------
HEALTH CARE -- 20.3%
Allergan, Inc. 602,700 35,113,302
Genzyme Corp.* 806,300 40,935,851
Illumina, Inc.* 779,500 33,931,635
Intuitive Surgical, Inc.* 150,900 47,627,058
Varian Medical Systems, Inc.* 513,500 26,845,780
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184,453,626
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CONSUMER DISCRETIONARY -- 16.9%
Amazon.com, Inc.* 531,300 58,049,838
Las Vegas Sands Corp.* 918,226 20,329,524
NIKE, Inc. - Class B 459,900 31,066,245
Staples, Inc. 1,003,400 19,114,770
Starbucks Corp. 1,040,700 25,289,010
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153,849,387
- --------------------------------------------------------------------------------
ENERGY -- 12.0%
FMC Technologies, Inc.* 688,700 36,266,942
National Oilwell Varco, Inc. 1,153,440 38,144,261
Schlumberger Ltd. 636,800 35,240,512
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109,651,715
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FINANCIALS -- 8.9%
Charles Schwab Corp.(The) 1,543,600 21,888,248
CME Group, Inc. 73,800 20,778,390
IntercontinentalExchange, Inc.* 335,820 37,957,734
- --------------------------------------------------------------------------------
80,624,372
- --------------------------------------------------------------------------------
INDUSTRIALS -- 3.9%
Iron Mountain, Inc. 598,600 13,444,556
W.W. Grainger, Inc. 218,600 21,739,770
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35,184,326
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TOTAL COMMON STOCKS $ 899,468,809
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INVESTMENT FUND -- 0.7%
Touchstone Institutional
Money Market Fund^ 6,804,309 $ 6,804,309
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TOTAL INVESTMENT SECURITIES -- 99.6%
(Cost $832,396,997) $ 906,273,118
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.4% 4,022,042
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NET ASSETS -- 100.0% $ 910,295,160
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $ 899,468,809 $ -- $ -- $ 899,468,809
Investment Funds 6,804,309 -- -- 6,804,309
=============
$ 906,273,118
See accompanying notes to financial statements.
18
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Other Items (Unaudited)
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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, 2010 through June 30, 2010).
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, 2010" to estimate the expenses you paid on your account
during this period.
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.
19
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Other Items (Continued)
- --------------------------------------------------------------------------------
NET EXPENSE BEGINNING ENDING EXPENSES
RATIO ACCOUNT ACCOUNT PAID DURING
ANNUALIZED VALUE VALUE THE SIX MONTHS
JUNE 30, JANUARY 1, JUNE 30, ENDED JUNE 30,
2010 2010 2010 2010*
- -------------------------------------------------------------------------------------------------------------------------
TOUCHSTONE MAZAMA INSTITUTIONAL GROWTH FUND
Actual 0.98% $ 1,000.00 $ 890.90 $ 4.59
Hypothetical 0.98% $ 1,000.00 $ 1,019.93 $ 4.91
TOUCHSTONE SANDS CAPITAL INSTITUTIONAL GROWTH FUND
Actual 0.79% $ 1,000.00 $ 937.10 $ 3.79
Hypothetical 0.79% $ 1,000.00 $ 1,020.88 $ 3.96
* 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 one-half year
period).
20
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
o We collect only the information we need to service your account and
administer our business.
o We are committed to keeping your information confidential and we place
strict limits and controls on the use and sharing of your information.
o We make every effort to ensure the accuracy of your information.
WE COLLECT THE FOLLOWING NONPUBLIC PERSONAL INFORMATION ABOUT YOU:
o 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
o 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
o We restrict access to nonpublic personal information about you to
authorized employees who need the information to administer your business.
o We maintain physical, electronic and procedural safeguards that comply
with federal standards to protect this information.
o 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.
o We will not sell your personal information to anyone.
WE MAY PROVIDE INFORMATION TO SERVICE YOUR ACCOUNT
Sometimes it is necessary to provide information about you to various companies
such as transfer agents, custodians, broker-dealers and marketing service firms
to facilitate the servicing of your account. These organizations have a
legitimate business need to see some of your personal information in order for
us to provide service to you. We may disclose to these various companies the
information that we collect as described above. We require that these companies,
including our own subsidiaries and affiliates, strictly maintain the
confidentiality of this information and abide by all applicable laws. Companies
within our corporate family that may receive this information are financial
service providers and insurance companies. We do not permit these associated
companies to sell the information for their own purposes, and we never sell our
customer information.
This policy is applicable to the following affiliated companies: Touchstone
Funds Group Trust, Touchstone Investment Trust, Touchstone Strategic Trust,
Touchstone Tax-Free Trust, Touchstone Variable Series Trust, Touchstone
Institutional Funds Trust, Touchstone Securities, Inc.,* Capital Analysts
Incorporated and W&S Brokerage Services, Inc.
* Touchstone Securities, Inc. serves as the underwriter to the Touchstone Funds.
A Member of Western & Southern Financial Group(R)
THE PRIVACY PROTECTION POLICY IS NOT PART OF THE SEMI-ANNUAL REPORT.
21
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Cincinnati, OH 45202-4203
- --------------------------------------------------------------------------------
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TOUCHSTONE INVESTMENTS
DISTRIBUTOR
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203 800.638.8194
www.touchstoneinvestments.com
INVESTMENT ADVISOR
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
TRANSFER AGENT
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
TSF-1105-TIFT-SAR-1006
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 31, 2010
---------------------------------------------------------------------------
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 31, 2010
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By (Signature and Title) /s/ Terrie Wiedenheft
-------------------------------------------------------
Terrie Wiedenheft, Controller and Treasurer
(principal financial officer)
Date August 31, 2010
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