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 |
811-3651 | |||||||
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Touchstone Strategic Trust | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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303 Broadway, Cincinnati, Ohio |
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45202 | ||||||
(Address of principal executive offices) |
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(Zip code) | ||||||
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Jill T. McGruder, 303 Broadway, Cincinnati, Ohio 45202 | ||||||||
(Name and address of agent for service) | ||||||||
| ||||||||
Registrants telephone number, including area code: |
(513) 878-4066 |
| ||||||
| ||||||||
Date of fiscal year end: |
3/31 |
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| ||||||||
Date of reporting period: |
9/30/11 |
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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. § 3507.
Item 1. Reports to Stockholders.
Semiannual Report
September 30, 2011
(Unaudited)
Semi-Annual Report
Touchstone Strategic Trust
Touchstone Diversified Small Cap Growth Fund
Touchstone Growth Opportunities Fund
Touchstone Large Cap Growth Fund
Touchstone Mid Cap Growth Fund
Table of Contents
Page | |||||||
Tabular Presentation of Portfolios of Investments | 3 | ||||||
Statements of Assets and Liabilities | 4-5 | ||||||
Statements of Operations | 6 | ||||||
Statements of Changes in Net Assets | 7-8 | ||||||
Financial Highlights | 9-17 | ||||||
Notes to Financial Statements | 18-31 | ||||||
Portfolios of Investments: | |||||||
Touchstone Diversified Small Cap Growth Fund | 32-33 | ||||||
Touchstone Growth Opportunities Fund | 34 | ||||||
Touchstone Large Cap Growth Fund | 35 | ||||||
Touchstone Mid Cap Growth Fund | 36-37 | ||||||
Other Items | 38-39 | ||||||
Privacy Protection Policy | 40 | ||||||
2
Tabular Presentation of Portfolios of Investments (Unaudited)
September 30, 2011
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.
Touchstone Diversified Small Cap Growth Fund
Sector Allocation* | (% of Net Assets) | ||||||
Health Care | 21.7 | % | |||||
Information Technology | 21.4 | ||||||
Consumer Discretionary | 19.8 | ||||||
Industrials | 14.8 | ||||||
Financials | 9.0 | ||||||
Energy | 6.5 | ||||||
Materials | 1.7 | ||||||
Telecommunication Services | 0.7 | ||||||
Investment Funds | 10.2 | ||||||
Other Assets/Liabilities (Net) | (5.8 | ) | |||||
Total | 100.0 | % |
Touchstone Growth Opportunities Fund
Sector Allocation* | (% of Net Assets) | ||||||
Information Technology | 38.4 | % | |||||
Industrials | 17.7 | ||||||
Health Care | 12.6 | ||||||
Materials | 8.9 | ||||||
Energy | 7.4 | ||||||
Consumer Staples | 7.0 | ||||||
Consumer Discretionary | 6.1 | ||||||
Investment Funds | 1.8 | ||||||
Other Assets/Liabilities (Net) | 0.1 | ||||||
Total | 100.0 | % |
Touchstone Large Cap Growth Fund
Sector Allocation* | (% of Net Assets) | ||||||
Consumer Discretionary | 32.4 | % | |||||
Information Technology | 17.7 | ||||||
Consumer Staples | 17.0 | ||||||
Health Care | 13.1 | ||||||
Energy | 9.6 | ||||||
Industrials | 5.0 | ||||||
Telecommunication Services | 2.2 | ||||||
Materials | 1.5 | ||||||
Investment Funds | 1.6 | ||||||
Other Assets/Liabilities (Net) | (0.1 | ) | |||||
Total | 100.0 | % |
Touchstone Mid Cap Growth Fund
Sector Allocation* | (% of Net Assets) | ||||||
Information Technology | 24.8 | % | |||||
Consumer Discretionary | 13.4 | ||||||
Materials | 12.8 | ||||||
Health Care | 12.6 | ||||||
Energy | 12.4 | ||||||
Industrials | 8.4 | ||||||
Financials | 5.6 | ||||||
Consumer Staples | 4.1 | ||||||
Telecommunication Services | 1.5 | ||||||
Investment Funds | 9.2 | ||||||
Other Assets/Liabilities (Net) | (4.8 | ) | |||||
Total | 100.0 | % |
* Source: Bloomberg
3
Statements of Assets and Liabilities
September 30, 2011 (Unaudited)
Touchstone Diversified Small Cap Growth Fund |
Touchstone Growth Opportunities Fund |
Touchstone Large Cap Growth Fund |
Touchstone Mid Cap Growth Fund |
||||||||||||||||
Assets | |||||||||||||||||||
Investment securities: | |||||||||||||||||||
At cost | $ | 29,617,429 | $ | 159,166,552 | $ | 538,927,265 | $ | 698,047,303 | |||||||||||
Affiliated securities, at fair value | $ | 1,060,668 | $ | 2,656,009 | $ | 9,980,834 | $ | 32,406,453 | |||||||||||
Non-affiliated securities, at fair value | 29,454,776 | 142,852,758 | 634,153,132 | 614,235,679 | |||||||||||||||
At fair value (A) | $ | 30,515,444 | $ | 145,508,767 | $ | 644,133,966 | $ | 646,642,132 | |||||||||||
Dividends and interest receivable | 5,216 | 114,741 | 794,552 | 443,555 | |||||||||||||||
Receivable for capital shares sold | 44,761 | 231,466 | 500,155 | 516,025 | |||||||||||||||
Receivable for securities sold | 841,671 | | | 5,381,297 | |||||||||||||||
Receivable for securities lending income | 563 | 48 | 17,935 | 4,654 | |||||||||||||||
Tax reclaims receivable | | | | 10,463 | |||||||||||||||
Other assets | 25,945 | 54,971 | 58,683 | 53,161 | |||||||||||||||
Total Assets | 31,433,600 | 145,909,993 | 645,505,291 | 653,051,287 | |||||||||||||||
Liabilities | |||||||||||||||||||
Overdrafts payable | | | | 5,458 | |||||||||||||||
Payable upon return of securities loaned | 1,881,046 | | | 24,314,248 | |||||||||||||||
Payable for capital shares redeemed | 59,046 | 71,801 | 1,305,285 | 1,460,595 | |||||||||||||||
Payable for professional services | 13,502 | 17,678 | 20,092 | 18,115 | |||||||||||||||
Payable for securities purchased | 603,857 | | | 9,442,765 | |||||||||||||||
Payable to Advisor | 7,905 | 44,722 | 329,804 | 469,702 | |||||||||||||||
Payable to other affiliates | 12,693 | 42,277 | 349,938 | 323,432 | |||||||||||||||
Payable to Trustees | 2,753 | 2,731 | 1,079 | 2,593 | |||||||||||||||
Other accrued expenses and liabilities | 15,763 | 16,537 | 85,300 | 81,927 | |||||||||||||||
Total Liabilities | 2,596,565 | 195,746 | 2,091,498 | 36,118,835 | |||||||||||||||
Net Assets | $ | 28,837,035 | $ | 145,714,247 | $ | 643,413,793 | $ | 616,932,452 | |||||||||||
Net assets consist of: | |||||||||||||||||||
Paid-in capital | $ | 45,376,156 | $ | 203,077,974 | $ | 708,251,091 | $ | 637,791,621 | |||||||||||
Accumulated net investment loss | (148,428 | ) | (321,766 | ) | (587,856 | ) | (3,633,671 | ) | |||||||||||
Accumulated net realized gains (losses) from security transactions | (17,288,708 | ) | (43,384,176 | ) | (169,456,143 | ) | 34,179,673 | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 898,015 | (13,657,785 | ) | 105,206,701 | (51,405,171 | ) | |||||||||||||
Net Assets | $ | 28,837,035 | $ | 145,714,247 | $ | 643,413,793 | $ | 616,932,452 | |||||||||||
Pricing of Class A Shares | |||||||||||||||||||
Net assets attributable to Class A shares | $ | 6,358,895 | $ | 73,073,882 | $ | 211,734,899 | $ | 336,656,862 | |||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
687,531 | 3,651,364 | 9,264,347 | 17,667,744 | |||||||||||||||
Net asset value and redemption price per share | $ | 9.25 | $ | 20.01 | $ | 22.85 | $ | 19.05 | |||||||||||
Maximum offering price per share | $ | 9.81 | $ | 21.23 | $ | 24.24 | $ | 20.21 | |||||||||||
Pricing of Class B Shares | |||||||||||||||||||
Net assets attributable to Class B shares | $ | | $ | | $ | 10,652,407 | $ | 13,446,239 | |||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
| | 487,762 | 840,957 | |||||||||||||||
Net asset value, offering price and redemption price per share* | $ | | $ | | $ | 21.84 | $ | 15.99 |
4
Statements of Assets and Liabilities (Continued)
Touchstone Diversified Small Cap Growth Fund |
Touchstone Growth Opportunities Fund |
Touchstone Large Cap Growth Fund |
Touchstone Mid Cap Growth Fund |
||||||||||||||||
Pricing of Class C Shares | |||||||||||||||||||
Net assets attributable to Class C shares | $ | 1,770,233 | $ | 7,538,803 | $ | 102,475,438 | $ | 155,494,409 | |||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
197,295 | 406,598 | 4,710,368 | 9,802,456 | |||||||||||||||
Net asset value, offering price and redemption price per share* | $ | 8.97 | $ | 18.54 | $ | 21.76 | $ | 15.86 | |||||||||||
Pricing of Class Y Shares | |||||||||||||||||||
Net assets attributable to Class Y shares | $ | 20,707,907 | $ | 8,648,704 | $ | 318,551,049 | $ | 106,716,653 | |||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
2,212,305 | 429,809 | 13,786,341 | 5,555,888 | |||||||||||||||
Net asset value, offering price and redemption price per share | $ | 9.36 | $ | 20.12 | $ | 23.11 | $ | 19.21 | |||||||||||
Pricing of Institutional Class Shares | |||||||||||||||||||
Net assets attributable to Institutional Class shares | $ | | $ | 56,452,858 | $ | | $ | 4,618,289 | |||||||||||
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) |
| 2,794,465 | | 240,408 | |||||||||||||||
Net asset value, offering price and redemption price per share | $ | | $ | 20.20 | $ | | $ | 19.21 | |||||||||||
(A) Includes market value of securities on loan of: | $ | 1,745,444 | $ | | $ | | $ | 22,793,808 |
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
5
Statements of Operations
For the Six Months Ended September 30, 2011 (Unaudited)
Touchstone Diversified Small Cap Growth Fund |
Touchstone Growth Opportunities Fund |
Touchstone Large Cap Growth Fund |
Touchstone Mid Cap Growth Fund |
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Investment Income | |||||||||||||||||||
Dividends from affiliated securities | $ | 586 | $ | 2,830 | $ | 9,649 | $ | 12,709 | |||||||||||
Dividends from non-affiliated securities (A) | 65,584 | 534,003 | 3,820,914 | 2,091,319 | |||||||||||||||
Income from securities loaned | 4,796 | 9,731 | 42,434 | 48,878 | |||||||||||||||
Total Investment Income | 70,966 | 546,564 | 3,872,997 | 2,152,906 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees | 181,394 | 611,112 | 2,604,674 | 2,841,533 | |||||||||||||||
Distribution expenses, Class A | 9,846 | 110,567 | 295,912 | 567,917 | |||||||||||||||
Distribution expenses, Class B | | | 4,383 | 142 | |||||||||||||||
Distribution expenses, Class C | 11,035 | 46,882 | 591,872 | 1,006,104 | |||||||||||||||
Administration fees | 34,665 | 163,358 | 731,921 | 778,897 | |||||||||||||||
Transfer Agent fees, Class A | 8,976 | 41,189 | 141,724 | 226,586 | |||||||||||||||
Transfer Agent fees, Class B | | | 7,394 | 10,728 | |||||||||||||||
Transfer Agent fees, Class C | 1,862 | 8,766 | 50,384 | 83,041 | |||||||||||||||
Transfer Agent fees, Class Y | 9,010 | 1,026 | 308,262 | 40,586 | |||||||||||||||
Transfer Agent fees, Institutional Class | | 221 | | 28 | * | ||||||||||||||
Postage and supplies | 9,238 | 30,433 | 67,422 | 68,688 | |||||||||||||||
Reports to shareholders, Class A | 3,926 | 4,657 | 22,358 | 34,864 | |||||||||||||||
Reports to shareholders, Class B | | | 4,442 | 5,279 | |||||||||||||||
Reports to shareholders, Class C | 4,455 | 3,652 | 12,894 | 21,219 | |||||||||||||||
Reports to shareholders, Class Y | 7,282 | 2,943 | 40,033 | 7,799 | |||||||||||||||
Reports to shareholders, Institutional Class | | 2,990 | | 5,553 | * | ||||||||||||||
Registration fees, Class A | 7,330 | 14,970 | 8,054 | 16,777 | |||||||||||||||
Registration fees, Class B | | | 7,849 | 5,504 | |||||||||||||||
Registration fees, Class C | 5,879 | 4,827 | 11,891 | 7,836 | |||||||||||||||
Registration fees, Class Y | 8,546 | 6,015 | 11,161 | 9,888 | |||||||||||||||
Registration fees, Institutional Class | | 7,889 | | 744 | * | ||||||||||||||
Networking Fees, Class A | 357 | 2,567 | 30,847 | 58,959 | |||||||||||||||
Networking Fees, Class B | | | 2,423 | 3,883 | |||||||||||||||
Networking Fees, Class C | 316 | 2,065 | 14,043 | 36,376 | |||||||||||||||
Networking Fees, Class Y | 33 | 3 | 1,206 | 26 | |||||||||||||||
Networking Fees, Institutional Class | | 145 | | | * | ||||||||||||||
Professional fees | 9,362 | 10,598 | 15,796 | 16,705 | |||||||||||||||
Custodian fees | 262 | 1,221 | 7,024 | 11,044 | |||||||||||||||
Trustees' fees and expenses | 4,715 | 4,725 | 5,286 | 4,784 | |||||||||||||||
Compliance fees and expenses | 895 | 895 | 895 | 895 | |||||||||||||||
Other expenses | 716 | 1,720 | 10,224 | 12,587 | |||||||||||||||
Total Expenses | 320,100 | 1,085,436 | 5,010,374 | 5,884,972 | |||||||||||||||
Fees waived by the Administrator | (34,665 | ) | (163,358 | ) | (473,136 | ) | (40,355 | ) | |||||||||||
Fees waived and/or expenses reimbursed by the Advisor | (66,041 | ) | (53,748 | ) | | | |||||||||||||
Net Expenses | 219,394 | 868,330 | 4,537,238 | 5,844,617 | |||||||||||||||
Net Investment Loss | (148,428 | ) | (321,766 | ) | (664,241 | ) | (3,691,711 | ) | |||||||||||
Realized and Unrealized Gains (Losses) on Investments | |||||||||||||||||||
Net realized gains (losses) from security transactions | 1,651,694 | (9,350,806 | ) | 46,256,698 | 12,919,799 | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments | (9,015,549 | ) | (28,710,564 | ) | (104,676,815 | ) | (199,840,521 | ) | |||||||||||
Net Realized and Unrealized Gains on Investments | (7,363,855 | ) | (38,061,370 | ) | (58,420,117 | ) | (186,920,722 | ) | |||||||||||
Change in Net Assets Resulting from Operations | $ | (7,512,283 | ) | $ | (38,383,136 | ) | $ | (59,084,358 | ) | $ | (190,612,433 | ) | |||||||
(A) Net of foreign tax withholding of: | $ | | $ | | $ | 67,745 | $ | 5,478 |
* Represents the period from commencement of operations (April 1, 2011) through September 30, 2011.
See accompanying notes to financial statements.
6
Statements of Changes in Net Assets
Touchstone Diversified Small Cap Growth Fund |
Touchstone Growth Opportunities Fund |
||||||||||||||||||
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
||||||||||||||||
From Operations | |||||||||||||||||||
Net investment income (loss) | $ | (148,428 | ) | $ | (302,234 | ) | $ | (321,766 | ) | $ | 312,483 | ||||||||
Net realized gains (losses) from security transactions | 1,651,694 | 4,216,821 | (9,350,806 | ) | 23,052,227 | ||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments | (9,015,549 | ) | 3,970,060 | (28,710,564 | ) | 3,780,887 | |||||||||||||
Change in Net Assets Resulting from Operations | (7,512,283 | ) | 7,884,647 | (38,383,136 | ) | 27,145,597 | |||||||||||||
Distributions to Shareholders | |||||||||||||||||||
From net investment income, Class A | | | | (242,350 | ) | ||||||||||||||
From net investment income, Class C | | | | (15,748 | ) | ||||||||||||||
From net investment income, Class Y | | | | (14,894 | ) | ||||||||||||||
From net investment income, Institutional Class | | | | (272,661 | ) | ||||||||||||||
Decrease in Net Assets from Distributions to Shareholders | | | | (545,653 | ) | ||||||||||||||
From Capital Share Transactions | |||||||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 364,575 | 3,783,539 | 8,812,503 | 13,611,156 | |||||||||||||||
Reinvested distributions | | | | 220,719 | |||||||||||||||
Proceeds from shares issued in connection with merger (A) | | | | 45,986,668 | |||||||||||||||
Payments for shares redeemed | (8,028,458 | ) | (4,104,649 | ) | (12,583,522 | ) | (10,856,965 | ) | |||||||||||
Change in Net Assets from Class A Share Transactions | (7,663,883 | ) | (321,110 | ) | (3,771,019 | ) | 48,961,578 | ||||||||||||
Class C | |||||||||||||||||||
Proceeds from shares sold | 21,670 | 20,300 | 362,883 | 1,362,141 | |||||||||||||||
Reinvested distributions | | | | 12,062 | |||||||||||||||
Proceeds from shares issued in connection with merger (A) | | | | 1,443,130 | |||||||||||||||
Payments for shares redeemed | (225,706 | ) | (683,371 | ) | (1,328,744 | ) | (2,017,847 | ) | |||||||||||
Change in Net Assets from Class C Share Transactions | (204,036 | ) | (663,071 | ) | (965,861 | ) | 799,486 | ||||||||||||
Class Y | |||||||||||||||||||
Proceeds from shares sold | 11,019,733 | 3,210,329 | 7,615,770 | 889,888 | |||||||||||||||
Reinvested distributions | | | | 7,659 | |||||||||||||||
Payments for shares redeemed | (4,275,027 | ) | (8,778,069 | ) | (701,828 | ) | (604,582 | ) | |||||||||||
Change in Net Assets from Class Y Share Transactions | 6,744,706 | (5,567,740 | ) | 6,913,942 | 292,965 | ||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | | | 18,434,976 | 34,236,952 | |||||||||||||||
Reinvested distributions | | | | 252,307 | |||||||||||||||
Payments for shares redeemed | | | (3,365,802 | ) | (8,589,836 | ) | |||||||||||||
Change in Net Assets from Institutional Class Share Transactions | | | 15,069,174 | 25,899,423 | |||||||||||||||
Total Change in Net Assets | (8,635,496 | ) | 1,332,726 | (21,136,900 | ) | 102,553,396 | |||||||||||||
Net Assets | |||||||||||||||||||
Beginning of period | 37,472,531 | 36,139,805 | 166,851,147 | 64,297,751 | |||||||||||||||
End of period | $ | 28,837,035 | $ | 37,472,531 | $ | 145,714,247 | $ | 166,851,147 | |||||||||||
Accumulated Net Investment Loss | $ | (148,428 | ) | $ | | $ | (321,766 | ) | $ | |
(A) See footnote 8 in the notes to financial statements.
See accompanying notes to financial statements.
7
Statements of Changes in Net Assets (Continued)
Touchstone Large Cap Growth Fund |
Touchstone Mid Cap Growth Fund |
||||||||||||||||||
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
||||||||||||||||
From Operations | |||||||||||||||||||
Net investment loss | $ | (664,241 | ) | $ | (2,895,744 | ) | $ | (3,691,711 | ) | $ | (2,646,368 | ) | |||||||
Net realized gains from security transactions | 46,256,698 | 124,890,601 | 12,919,799 | 159,538,973 | |||||||||||||||
Net change in unrealized appreciation/(depreciation) on investments | (104,676,815 | ) | 4,787,430 | (199,840,521 | ) | 10,043,161 | |||||||||||||
Change in Net Assets Resulting from Operations | (59,084,358 | ) | 126,782,287 | (190,612,433 | ) | 166,935,766 | |||||||||||||
From Capital Share Transactions | |||||||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 28,436,260 | 37,525,420 | 50,075,392 | 101,107,970 | |||||||||||||||
Proceeds from shares issued in connection with merger (A) | 23,922,198 | | | | |||||||||||||||
Payments for shares redeemed | (108,820,395 | ) | (132,218,091 | ) | (191,139,045 | ) | (214,719,417 | ) | |||||||||||
Change in Net Assets from Class A Share Transactions | (56,461,937 | ) | (94,692,671 | ) | (141,063,653 | ) | (113,611,447 | ) | |||||||||||
Class B | |||||||||||||||||||
Proceeds from shares sold | 6,942 | 11,132 | 70,515 | 87,874 | |||||||||||||||
Payments for shares redeemed | (1,949,800 | ) | (3,810,505 | ) | (5,572,984 | ) | (14,031,080 | ) | |||||||||||
Change in Net Assets from Class B Share Transactions | (1,942,858 | ) | (3,799,373 | ) | (5,502,469 | ) | (13,943,206 | ) | |||||||||||
Class C | |||||||||||||||||||
Proceeds from shares sold | 2,591,249 | 6,672,654 | 4,664,597 | 12,270,665 | |||||||||||||||
Proceeds from shares issued in connection with merger (A) | 1,730,818 | | | | |||||||||||||||
Payments for shares redeemed | (20,350,815 | ) | (43,406,395 | ) | (22,709,383 | ) | (49,103,632 | ) | |||||||||||
Change in Net Assets from Class C Share Transactions | (16,028,748 | ) | (36,733,741 | ) | (18,044,786 | ) | (36,832,967 | ) | |||||||||||
Class Y | |||||||||||||||||||
Proceeds from shares sold | 99,525,352 | 68,406,858 | 105,978,140 | 27,508,300 | |||||||||||||||
Payments for shares redeemed | (86,792,761 | ) | (140,151,719 | ) | (17,456,764 | ) | (12,625,487 | ) | |||||||||||
Change in Net Assets from Class Y Share Transactions | 12,732,591 | (71,744,861 | ) | 88,521,376 | 14,882,813 | ||||||||||||||
Institutional Class* | |||||||||||||||||||
Proceeds from shares sold | | | 5,403,749 | | |||||||||||||||
Payments for shares redeemed | | | (80,367 | ) | | ||||||||||||||
Change in Net Assets from Institutional Class Share Transactions | | | 5,323,382 | | |||||||||||||||
Total Change in Net Assets | (120,785,310 | ) | (80,188,359 | ) | (261,378,583 | ) | 17,430,959 | ||||||||||||
Net Assets | |||||||||||||||||||
Beginning of period | 764,199,103 | 844,387,462 | 878,311,035 | 860,880,076 | |||||||||||||||
End of period | $ | 643,413,793 | $ | 764,199,103 | $ | 616,932,452 | $ | 878,311,035 | |||||||||||
Accumulated Net Investment Income (Loss) | $ | (587,856 | ) | $ | 76,385 | $ | (3,633,671 | ) | $ | 58,040 |
(A) See footnote 8 in the notes to financial statements.
* Represents the period from commencement of operations (April 1, 2011) through September 30, 2011.
See accompanying notes to financial statements.
8
Financial Highlights
Touchstone Diversified Small Cap Growth Fund Class A
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, |
Period Ended March 31, |
|||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 (A) | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 11.65 | $ | 9.09 | $ | 6.27 | $ | 9.80 | $ | 11.64 | $ | 10.00 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | (0.10 | ) | (0.09 | ) | (0.08 | ) | (0.02 | ) | 0.50 | (0.07 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments |
(2.30 | ) | 2.65 | 2.90 | (3.51 | ) | (1.15 | ) | 1.71 | ||||||||||||||||||
Total from investment operations | (2.40 | ) | 2.56 | 2.82 | (3.53 | ) | (0.65 | ) | 1.64 | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||||||
Distributions from net realized gains | | | | | (1.19 | ) | | ||||||||||||||||||||
Net asset value at end of period | $ | 9.25 | $ | 11.65 | $ | 9.09 | $ | 6.27 | $ | 9.80 | $ | 11.64 | |||||||||||||||
Total return (B) | (20.60 | %) (C) | 28.16 | % | 44.98 | % | (36.02 | %) | (7.28 | %) | 16.40 | % (C) | |||||||||||||||
Net assets at end of period (000's) | $ | 6,359 | $ | 15,686 | $ | 12,708 | $ | 9,054 | $ | 22,955 | $ | 5,846 | |||||||||||||||
Ratio of net expenses to average net assets | 1.40 | % (D) | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % | 1.40 | % (D) | |||||||||||||||
Ratio of gross expenses to average net assets | 2.17 | % (D) | 2.06 | % | 2.24 | % | 2.25 | % | 2.03 | % | 2.72 | % (D) | |||||||||||||||
Ratio of net investment income (loss) to average net assets | (1.00 | %) (D) | (0.99 | %) | (0.99 | %) | (0.22 | %) | 0.33 | % | (1.15 | %) (D) | |||||||||||||||
Portfolio turnover rate | 30 | % (C) | 63 | % | 76 | % | 113 | % | 99 | % | 86 | % (C) |
Touchstone Diversified Small Cap Growth Fund Class C
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, |
Period Ended March 31, |
|||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 (E) | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.35 | $ | 8.91 | $ | 6.20 | $ | 9.75 | $ | 12.44 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment loss | (0.12 | ) | (0.19 | ) | (0.15 | ) | (0.08 | ) | (0.22 | ) | |||||||||||||
Net realized and unrealized gains (losses) on investments | (2.26 | ) | 2.63 | 2.86 | (3.47 | ) | (1.28 | ) | |||||||||||||||
Total from investment operations | (2.38 | ) | 2.44 | 2.71 | (3.55 | ) | (1.50 | ) | |||||||||||||||
Less distributions: | |||||||||||||||||||||||
Distributions from net realized gains | | | | | (1.19 | ) | |||||||||||||||||
Net asset value at end of period | $ | 8.97 | $ | 11.35 | $ | 8.91 | $ | 6.20 | $ | 9.75 | |||||||||||||
Total return (B) | (20.97 | %) (C) | 27.38 | % | 43.71 | % | (36.41 | %) | (13.66 | %) (C) | |||||||||||||
Net assets at end of period (000's) | $ | 1,770 | $ | 2,452 | $ | 2,576 | $ | 2,267 | $ | 4,228 | |||||||||||||
Ratio of net expenses to average net assets | 2.15 | % (D) | 2.15 | % | 2.15 | % | 2.15 | % | 0.84 | % (D) | |||||||||||||
Ratio of gross expenses to average net assets | 3.53 | % (D) | 3.58 | % | 3.32 | % | 3.54 | % | 1.35 | % (D) | |||||||||||||
Ratio of net investment loss to average net assets | (1.74 | %) (D) | (1.74 | %) | (1.74 | %) | (0.98 | %) | (17.70 | %) (D) | |||||||||||||
Portfolio turnover rate | 30 | % (C) | 63 | % | 76 | % | 113 | % | 99 | % (C) |
(A) Represents the period from commencement of operations (September 6, 2006) through March 31, 2007.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
(E) Represents the period from commencement of operations (August 1, 2007) through March 31, 2008.
See accompanying notes to financial statements.
9
Financial Highlights (Continued)
Touchstone Diversified Small Cap Growth Fund Class Y
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, |
Period Ended March 31, |
|||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 (A) | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 11.78 | $ | 9.16 | $ | 6.30 | $ | 9.84 | $ | 11.66 | $ | 10.00 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.08 | ) | (0.05 | ) | 0.00 | (B) | 0.04 | (0.05 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments |
(2.36 | ) | 2.70 | 2.91 | (3.54 | ) | (0.67 | ) | 1.71 | ||||||||||||||||||
Total from investment operations | (2.42 | ) | 2.62 | 2.86 | (3.54 | ) | (0.63 | ) | 1.66 | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||||||
Distributions from net realized gains | | | | | (1.19 | ) | | ||||||||||||||||||||
Net asset value at end of period | $ | 9.36 | $ | 11.78 | $ | 9.16 | $ | 6.30 | $ | 9.84 | $ | 11.66 | |||||||||||||||
Total return | (20.54 | %) (C) | 28.60 | % | 45.40 | % | (35.98 | %) | (7.09 | %) | 16.60 | % (C) | |||||||||||||||
Net assets at end of period (000's) | $ | 20,708 | $ | 19,334 | $ | 20,856 | $ | 8,808 | $ | 14,509 | $ | 6,128 | |||||||||||||||
Ratio of net expenses to average net assets | 1.15 | % (D) | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % (D) | |||||||||||||||
Ratio of gross expenses to average net assets | 1.60 | % (D) | 1.58 | % | 1.66 | % | 1.67 | % | 1.81 | % | 2.22 | % (D) | |||||||||||||||
Ratio of net investment income (loss) to average net assets |
(0.74 | %) (D) | (0.73 | %) | (0.74 | %) | 0.02 | % | (0.52 | %) | (0.90 | %) (D) | |||||||||||||||
Portfolio turnover rate | 30 | % (C) | 63 | % | 76 | % | 113 | % | 99 | % | 86 | % (C) |
(A) Represents the period from commencement of operations (September 6, 2006) through March 31, 2007.
(B) Amount rounds to less than $0.005 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
10
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund Class A
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 25.27 | $ | 20.88 | $ | 14.41 | $ | 21.68 | $ | 20.75 | $ | 21.57 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | 0.07 | (0.03 | ) | (0.15 | ) | (0.24 | ) | (0.35 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) on investments |
(5.20 | ) | 4.44 | 6.50 | (7.12 | ) | 1.17 | (0.47 | ) | ||||||||||||||||||
Total from investment operations | (5.26 | ) | 4.51 | 6.47 | (7.27 | ) | 0.93 | (0.82 | ) | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | | (0.12 | ) | | | | | ||||||||||||||||||||
Net asset value at end of period | $ | 20.01 | $ | 25.27 | $ | 20.88 | $ | 14.41 | $ | 21.68 | $ | 20.75 | |||||||||||||||
Total return (A) | (20.82 | %) (B) | 21.71 | % | 44.90 | % | (33.53 | %) | 4.48 | % | (3.80 | %) | |||||||||||||||
Net assets at end of period (000's) | $ | 73,074 | $ | 96,930 | $ | 32,182 | $ | 17,973 | $ | 26,349 | $ | 35,723 | |||||||||||||||
Ratio of net expenses to average net assets | 1.18 | % (C) | 1.16 | % | 1.24 | % | 1.51 | % | 1.55 | % | 1.79 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 1.41 | % (C) | 1.50 | % | 1.85 | % | 2.04 | % | 1.91 | % | 1.84 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | (0.51 | %) (C) | 0.10 | % | (0.22 | %) | (0.70 | %) | (0.89 | %) | (1.12 | %) | |||||||||||||||
Portfolio turnover rate | 57 | % (B) | 130 | % | 100 | % | 60 | % | 82 | % | 161 | % |
Touchstone Growth Opportunities Fund Class C
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 23.50 | $ | 19.49 | $ | 13.55 | $ | 20.42 | $ | 19.63 | $ | 20.60 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.17 | ) | (0.07 | ) | (0.17 | ) | (0.29 | ) | (0.35 | ) | (0.54 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments |
(4.79 | ) | 4.12 | 6.11 | (6.58 | ) | 1.14 | (0.43 | ) | ||||||||||||||||||
Total from investment operations | (4.96 | ) | 4.05 | 5.94 | (6.87 | ) | 0.79 | (0.97 | ) | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | | (0.04 | ) | | | | | ||||||||||||||||||||
Net asset value at end of period | $ | 18.54 | $ | 23.50 | $ | 19.49 | $ | 13.55 | $ | 20.42 | $ | 19.63 | |||||||||||||||
Total return (A) | (21.11 | %) (B) | 20.82 | % | 43.84 | % | (33.64 | %) | 4.02 | % | (4.71 | %) | |||||||||||||||
Net assets at end of period (000's) | $ | 7,539 | $ | 10,592 | $ | 8,085 | $ | 6,262 | $ | 11,115 | $ | 11,957 | |||||||||||||||
Ratio of net expenses to average net assets | 1.93 | % (C) | 1.93 | % | 1.99 | % | 2.27 | % | 2.30 | % | 2.71 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 2.42 | % (C) | 2.58 | % | 2.63 | % | 2.82 | % | 2.71 | % | 2.75 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (1.26 | %) (C) | (0.43 | %) | (0.96 | %) | (1.46 | %) | (1.60 | %) | (2.00 | %) | |||||||||||||||
Portfolio turnover rate | 57 | % (B) | 130 | % | 100 | % | 60 | % | 82 | % | 161 | % |
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
11
Financial Highlights (Continued)
Touchstone Growth Opportunities Fund Class Y
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, |
Period Ended March 31, |
|||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 (A) | ||||||||||||||||
Net asset value at beginning of period | $ | 25.38 | $ | 20.94 | $ | 14.41 | $ | 14.37 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss) | (0.04 | ) | 0.14 | (0.00 | ) (B) | (0.00 | ) (B) | ||||||||||||
Net realized and unrealized gains (losses) on investments | (5.22 | ) | 4.45 | 6.53 | 0.04 | ||||||||||||||
Total from investment operations | (5.26 | ) | 4.59 | 6.53 | 0.04 | ||||||||||||||
Less distributions: | |||||||||||||||||||
Dividends from net investment income | | (0.15 | ) | | | ||||||||||||||
Net asset value at end of period | $ | 20.12 | $ | 25.38 | $ | 20.94 | $ | 14.41 | |||||||||||
Total return | (20.72 | %) (C) | 22.06 | % | 45.32 | % | 0.28 | % (C) | |||||||||||
Net assets at end of period (000's) | $ | 8,649 | $ | 2,947 | $ | 2,223 | $ | 3 | |||||||||||
Ratio of net expenses to average net assets | 0.95 | % (D) | 0.93 | % | 0.98 | % | 0.97 | % (D) | |||||||||||
Ratio of gross expenses to average net assets | 1.48 | % (D) | 1.73 | % | 3.73 | % | 1.82 | % (D) | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.20 | %) (D) | 0.63 | % | (0.04 | %) | 0.21 | % (D) | |||||||||||
Portfolio turnover rate | 57 | % (C) | 130 | % | 100 | % | 60 | % (C) |
Touchstone Growth Opportunities Fund Institutional Class
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, |
Period Ended March 31, |
|||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 (A) | ||||||||||||||||
Net asset value at beginning of period | $ | 25.46 | $ | 20.98 | $ | 14.42 | $ | 14.37 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss) | (0.02 | ) | 0.16 | 0.01 | (0.00 | ) (B) | |||||||||||||
Net realized and unrealized gains (losses) on investments | (5.24 | ) | 4.48 | 6.55 | 0.05 | ||||||||||||||
Total from investment operations | (5.26 | ) | 4.64 | 6.56 | 0.05 | ||||||||||||||
Less distributions: | |||||||||||||||||||
Dividends from net investment income | | (0.16 | ) | | | ||||||||||||||
Net asset value at end of period | $ | 20.20 | $ | 25.46 | $ | 20.98 | $ | 14.42 | |||||||||||
Total return | (20.66 | %) (C) | 22.25 | % | 45.49 | % | 0.35 | % (C) | |||||||||||
Net assets at end of period (000's) | $ | 56,453 | $ | 56,381 | $ | 21,807 | $ | 3 | |||||||||||
Ratio of net expenses to average net assets | 0.78 | % (D) | 0.75 | % | 0.84 | % | 0.82 | % (D) | |||||||||||
Ratio of gross expenses to average net assets | 1.05 | % (D) | 1.15 | % | 1.49 | % | 1.82 | % (D) | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.10 | %) (D) | 0.78 | % | 0.15 | % | 0.36 | % (D) | |||||||||||
Portfolio turnover rate | 57 | % (C) | 130 | % | 100 | % | 60 | % (C) |
(A) Represents the period from commencement of operations (February 2, 2009) through March 31, 2009.
(B) Amount rounds to less than $0.005.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
12
Financial Highlights (Continued)
Touchstone Large Cap Growth Fund Class A
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 24.95 | $ | 20.74 | $ | 14.73 | $ | 24.45 | $ | 22.06 | $ | 23.26 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) (D) | (0.09 | ) | (0.02 | ) | 0.09 | 0.02 | (0.04 | ) | |||||||||||||||||
Net realized and unrealized gains (losses) on investments |
(2.08 | ) | 4.30 | 6.08 | (9.80 | ) | 2.37 | (1.16 | ) | ||||||||||||||||||
Total from investment operations | (2.10 | ) | 4.21 | 6.06 | (9.71 | ) | 2.39 | (1.20 | ) | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | | | (0.04 | ) | (0.01 | ) | | | |||||||||||||||||||
Tax return of capital | | | (0.01 | ) | | | | ||||||||||||||||||||
Total distributions | | | (0.05 | ) | (0.01 | ) | | | |||||||||||||||||||
Net asset value at end of period | $ | 22.85 | $ | 24.95 | $ | 20.74 | $ | 14.73 | $ | 24.45 | $ | 22.06 | |||||||||||||||
Total return (A) | (8.42 | %) (B) | 20.30 | % | 41.15 | % | (39.71 | %) | 10.83 | % | (5.16 | %) | |||||||||||||||
Net assets at end of period (000's) | $ | 211,735 | $ | 291,827 | $ | 334,465 | $ | 418,808 | $ | 719,488 | $ | 656,582 | |||||||||||||||
Ratio of net expenses to average net assets | 1.25 | % (C) | 1.25 | % | 1.25 | % | 1.25 | % | 1.25 | % | 1.16 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 1.37 | % (C) | 1.36 | % | 1.37 | % | 1.33 | % | 1.33 | % | 1.24 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | (0.19 | %) (C) | (0.36 | %) | (0.29 | %) | 0.41 | % | 0.06 | % | (0.16 | %) | |||||||||||||||
Portfolio turnover | 23 | % (B) | 76 | % | 83 | % | 126 | % | 72 | % | 115 | % |
Touchstone Large Cap Growth Fund Class B
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 23.85 | $ | 19.93 | $ | 14.22 | $ | 23.68 | $ | 21.46 | $ | 22.83 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.11 | ) | (0.20 | ) | (0.44 | ) | (0.08 | ) | (0.15 | ) | (0.21 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments |
(1.90 | ) | 4.12 | 6.15 | (9.38 | ) | 2.37 | (1.16 | ) | ||||||||||||||||||
Total from investment operations | (2.01 | ) | 3.92 | 5.71 | (9.46 | ) | 2.22 | (1.37 | ) | ||||||||||||||||||
Net asset value at end of period | $ | 21.84 | $ | 23.85 | $ | 19.93 | $ | 14.22 | $ | 23.68 | $ | 21.46 | |||||||||||||||
Total return (A) | (8.43 | %) (B) | 19.67 | % | 40.15 | % | (39.95 | %) | 10.34 | % | (6.00 | %) | |||||||||||||||
Net assets at end of period (000's) | $ | 10,652 | $ | 13,467 | $ | 14,897 | $ | 14,186 | $ | 29,829 | $ | 26,669 | |||||||||||||||
Ratio of net expenses to average net assets | 1.37 | % (C) | 1.74 | % | 2.00 | % | 2.00 | % | 2.00 | % | 2.02 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 1.38 | % (C) | 1.83 | % | 2.29 | % | 2.20 | % | 2.18 | % | 2.10 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (0.31 | %) (C) | (0.85 | %) | (1.05 | %) | (0.35 | %) | (0.65 | %) | (0.98 | %) | |||||||||||||||
Portfolio turnover rate | 23 | % (B) | 76 | % | 83 | % | 126 | % | 72 | % | 115 | % |
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
(D) Calculated using average share method.
See accompanying notes to financial statements.
13
Financial Highlights (Continued)
Touchstone Large Cap Growth Fund Class C
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 23.84 | $ | 19.97 | $ | 14.25 | $ | 23.74 | $ | 21.52 | $ | 22.88 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.18 | ) | (0.27 | ) | (0.22 | ) | (0.07 | ) | (0.14 | ) | (0.20 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments |
(1.90 | ) | 4.14 | 5.94 | (9.42 | ) | 2.36 | (1.16 | ) | ||||||||||||||||||
Total from investment operations | (2.08 | ) | 3.87 | 5.72 | (9.49 | ) | 2.22 | (1.36 | ) | ||||||||||||||||||
Net asset value at end of period | $ | 21.76 | $ | 23.84 | $ | 19.97 | $ | 14.25 | $ | 23.74 | $ | 21.52 | |||||||||||||||
Total return (A) | (8.72 | %) (B) | 19.38 | % | 40.14 | % | (39.97 | %) | 10.32 | % | (5.94 | %) | |||||||||||||||
Net assets at end of period (000's) | $ | 102,475 | $ | 127,172 | $ | 142,179 | $ | 137,641 | $ | 236,582 | $ | 190,261 | |||||||||||||||
Ratio of net expenses to average net assets | 2.00 | % (C) | 2.00 | % | 2.00 | % | 2.00 | % | 2.00 | % | 1.95 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 2.10 | % (C) | 2.13 | % | 2.16 | % | 2.11 | % | 2.09 | % | 2.01 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (0.94 | %) (C) | (1.11 | %) | (1.05 | %) | (0.33 | %) | (0.66 | %) | (0.92 | %) | |||||||||||||||
Portfolio turnover rate | 23 | % (B) | 76 | % | 83 | % | 126 | % | 72 | % | 115 | % |
Touchstone Large Cap Growth Fund Class Y
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 25.19 | $ | 20.89 | $ | 14.84 | $ | 24.64 | $ | 22.19 | $ | 23.33 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.01 | (0.02 | ) | (0.01 | ) | 0.10 | 0.05 | 0.06 | |||||||||||||||||||
Net realized and unrealized gains (losses) on investments |
(2.09 | ) | 4.32 | 6.17 | (9.85 | ) | 2.40 | (1.20 | ) | ||||||||||||||||||
Total from investment operations | (2.08 | ) | 4.30 | 6.16 | (9.75 | ) | 2.45 | (1.14 | ) | ||||||||||||||||||
Less distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | | | (0.10 | ) | (0.05 | ) | | | |||||||||||||||||||
Tax return of capital | | | (0.01 | ) | | | | ||||||||||||||||||||
Total distributions | | | (0.11 | ) | (0.05 | ) | | | |||||||||||||||||||
Net asset value at end of period | $ | 23.11 | $ | 25.19 | $ | 20.89 | $ | 14.84 | $ | 24.64 | $ | 22.19 | |||||||||||||||
Total return | (8.26 | %) (B) | 20.58 | % | 41.53 | % | (39.58 | %) | 11.04 | % | (4.89 | %) | |||||||||||||||
Net assets at end of period (000's) | $ | 318,551 | $ | 331,733 | $ | 352,847 | $ | 206,369 | $ | 31,679 | $ | 40,044 | |||||||||||||||
Ratio of net expenses to average net assets | 0.99 | % (C) | 0.99 | % | 0.99 | % | 0.97 | % | 1.00 | % | 0.90 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 1.14 | % (C) | 1.13 | % | 1.06 | % | 1.06 | % | 1.04 | % | 0.95 | % | |||||||||||||||
Ratio of net investment income (loss) to average net assets | 0.08 | % (C) | (0.10 | %) | (0.06 | %) | 0.95 | % | 0.21 | % | 0.13 | % | |||||||||||||||
Portfolio turnover | 23 | % (B) | 76 | % | 83 | % | 126 | % | 72 | % | 115 | % |
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
14
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund Class A
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 24.91 | $ | 20.18 | $ | 12.95 | $ | 21.16 | $ | 24.17 | $ | 24.02 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.08 | ) | (0.03 | ) | (0.03 | ) | (0.01 | ) | (0.12 | ) | (0.14 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments |
(5.78 | ) | 4.76 | 7.26 | (7.96 | ) | 0.01 | 2.20 | |||||||||||||||||||
Total from investment operations | (5.86 | ) | 4.73 | 7.23 | (7.97 | ) | (0.11 | ) | 2.06 | ||||||||||||||||||
Less Distributions | |||||||||||||||||||||||||||
Distributions from net realized gains | | | | (0.24 | ) | (2.90 | ) | (1.91 | ) | ||||||||||||||||||
Net asset value at end of period | $ | 19.05 | $ | 24.91 | $ | 20.18 | $ | 12.95 | $ | 21.16 | $ | 24.17 | |||||||||||||||
Total return (A) | (23.52 | %) (B) | 23.44 | % | 55.83 | % | (37.67 | %) | (1.53 | %) | 8.84 | % | |||||||||||||||
Net assets at end of period (000's) | $ | 336,657 | $ | 584,089 | $ | 583,543 | $ | 397,756 | $ | 649,891 | $ | 713,666 | |||||||||||||||
Ratio of net expenses to average net assets | 1.36 | % (C) | 1.47 | % | 1.50 | % | 1.50 | % | 1.47 | % | 1.50 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 1.36 | % (C) | 1.47 | % | 1.51 | % | 1.53 | % | 1.47 | % | 1.53 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (0.81 | %) (C) | (0.13 | %) | (0.15 | %) | (0.07 | %) | (0.53 | %) | (0.66 | %) | |||||||||||||||
Portfolio turnover | 28 | % (B) | 99 | % | 62 | % | 71 | % | 64 | % | 58 | % |
Touchstone Mid Cap Growth Fund Class B
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 20.89 | $ | 16.98 | $ | 10.98 | $ | 18.13 | $ | 21.25 | $ | 21.49 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.15 | ) | (0.10 | ) | (0.16 | ) | (0.15 | ) | (0.28 | ) | (0.30 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments |
(4.75 | ) | 4.01 | 6.16 | (6.76 | ) | 0.06 | 1.97 | |||||||||||||||||||
Total from investment operations | (4.90 | ) | 3.91 | 6.00 | (6.91 | ) | (0.22 | ) | 1.67 | ||||||||||||||||||
Less Distributions | |||||||||||||||||||||||||||
Distributions from net realized gains | | | | (0.24 | ) | (2.90 | ) | (1.91 | ) | ||||||||||||||||||
Net asset value at end of period | $ | 15.99 | $ | 20.89 | $ | 16.98 | $ | 10.98 | $ | 18.13 | $ | 21.25 | |||||||||||||||
Total return (A) | (23.46 | %) (B) | 23.03 | % | 54.64 | % | (38.12 | %) | (2.29 | %) | 8.04 | % | |||||||||||||||
Net assets at end of period (000's) | $ | 13,446 | $ | 23,376 | $ | 32,762 | $ | 29,521 | $ | 61,977 | $ | 74,935 | |||||||||||||||
Ratio of net expenses to average net assets | 1.22 | % (C) | 1.77 | % | 2.25 | % | 2.25 | % | 2.25 | % | 2.25 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 1.23 | % (C) | 1.82 | % | 2.38 | % | 2.34 | % | 2.27 | % | 2.29 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (0.67 | %) (C) | (0.43 | %) | (0.90 | %) | (0.85 | %) | (1.31 | %) | (1.42 | %) | |||||||||||||||
Portfolio turnover rate | 28 | % (B) | 99 | % | 62 | % | 71 | % | 64 | % | 58 | % |
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
15
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund Class C
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, | ||||||||||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
Net asset value at beginning of period | $ | 20.81 | $ | 17.00 | $ | 10.99 | $ | 18.15 | $ | 21.27 | $ | 21.51 | |||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment loss | (0.18 | ) | (0.17 | ) | (0.14 | ) | (0.14 | ) | (0.27 | ) | (0.28 | ) | |||||||||||||||
Net realized and unrealized gains (losses) on investments |
(4.77 | ) | 3.98 | 6.15 | (6.78 | ) | 0.05 | 1.95 | |||||||||||||||||||
Total from investment operations | (4.95 | ) | 3.81 | 6.01 | (6.92 | ) | (0.22 | ) | 1.67 | ||||||||||||||||||
Less Distributions | |||||||||||||||||||||||||||
Distributions from net realized gains | | | | (0.24 | ) | (2.90 | ) | (1.91 | ) | ||||||||||||||||||
Net asset value at end of period | $ | 15.86 | $ | 20.81 | $ | 17.00 | $ | 10.99 | $ | 18.15 | $ | 21.27 | |||||||||||||||
Total return (A) | (23.79 | %) (B) | 22.41 | % | 54.69 | % | (38.14 | %) | (2.28 | %) | 8.04 | % | |||||||||||||||
Net assets at end of period (000's) | $ | 155,494 | $ | 223,376 | $ | 218,413 | $ | 158,782 | $ | 302,422 | $ | 345,997 | |||||||||||||||
Ratio of net expenses to average net assets | 2.10 | % (C) | 2.24 | % | 2.25 | % | 2.25 | % | 2.24 | % | 2.25 | % | |||||||||||||||
Ratio of gross expenses to average net assets | 2.11 | % (C) | 2.27 | % | 2.31 | % | 2.31 | % | 2.24 | % | 2.29 | % | |||||||||||||||
Ratio of net investment loss to average net assets | (1.55 | %) (C) | (0.90 | %) | (0.90 | %) | (0.84 | %) | (1.30 | %) | (1.41 | %) | |||||||||||||||
Portfolio turnover | 28 | % (B) | 99 | % | 62 | % | 71 | % | 64 | % | 58 | % |
Touchstone Mid Cap Growth Fund Class Y
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 |
Year Ended March 31, |
Period Ended March 31, |
|||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 (D) | ||||||||||||||||
Net asset value at beginning of period | $ | 25.07 | $ | 20.27 | $ | 12.96 | $ | 13.20 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||
Net investment income (loss) | (0.24 | ) | 0.01 | 0.01 | 0.02 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | (5.62 | ) | 4.79 | 7.30 | (0.26 | ) | |||||||||||||
Total from investment operations | (5.86 | ) | 4.80 | 7.31 | (0.24 | ) | |||||||||||||
Net asset value at end of period | $ | 19.21 | $ | 25.07 | $ | 20.27 | $ | 12.96 | |||||||||||
Total return | (23.37 | %) (B) | 23.68 | % | 56.40 | % | (1.82 | %) (B) | |||||||||||
Net assets at end of period (000's) | $ | 106,717 | $ | 47,470 | $ | 26,162 | $ | 3 | |||||||||||
Ratio of net expenses to average net assets | 1.07 | % (C) | 1.24 | % | 1.25 | % | 1.25 | % (D) | |||||||||||
Ratio of gross expenses to average net assets | 1.08 | % (C) | 1.24 | % | 1.26 | % | 1.63 | % (D) | |||||||||||
Ratio of net investment income (loss) to average net assets | (0.48 | %) (C) | 0.05 | % | 0.14 | % | 1.11 | % (D) | |||||||||||
Portfolio turnover | 28 | % (B) | 99 | % | 62 | % | 71 | % (B) |
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Not annualized.
(C) Annualized.
(D) Represents the period from commencement of operations (February 2, 2009) through March 31, 2009.
See accompanying notes to financial statements.
16
Financial Highlights (Continued)
Touchstone Mid Cap Growth Fund Institutional Class
Per Share Data for a Share Outstanding Throughout Each Period
Six Months Ended September 30, 2011 (A) (Unaudited) |
|||||||
Net asset value at beginning of period | $ | 25.30 | |||||
Loss from investment operations: | |||||||
Net investment loss | (0.01 | ) | |||||
Net realized and unrealized gains on investments | (6.08 | ) | |||||
Total from investment operations | (6.09 | ) | |||||
Net asset value at end of period | $ | 19.21 | |||||
Total return | (24.07 | %) (B) | |||||
Net assets at end of period (000's) | $ | 4,618 | |||||
Ratio of net expenses to average net assets | 1.01 | % (C) | |||||
Ratio of gross expenses to average net assets | 1.88 | % (C) | |||||
Ratio of net investment income to average net assets | (0.36 | %) (C) | |||||
Portfolio turnover | 28 | % (B) |
(A) Represents the period from commencement of operations (April 1, 2011) through September 30, 2011.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
17
Notes to Financial Statements
September 30, 2011 (Unaudited)
1. Organization
The Touchstone Strategic Trust (the "Trust"), is registered under the Investment Company Act of 1940, as amended, (the "1940 Act"), as an open-end management investment company. The Trust was established as a Massachusetts business trust under a Declaration of Trust dated November 18, 1982. The Trust consists of the following four funds, individually, a "Fund", and collectively, the "Funds":
Touchstone Diversified Small Cap Growth Fund ("Diversified Small Cap Growth Fund")
Touchstone Growth Opportunities Fund ("Growth Opportunities Fund")
Touchstone Large Cap Growth Fund ("Large Cap Growth Fund")
Touchstone Mid Cap Growth Fund ("Mid Cap Growth Fund")
The Diversified Small Cap Growth Fund and the Mid Cap Growth Fund are each an open-end, diversified, management investment company. The Growth Opportunities Fund and the Large Cap Growth Fund are each an open-end, non-diversified management investment company.
The Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The Funds are registered to offer different classes of shares: Class A shares, Class B shares, Class C shares, Class Y shares, and Institutional Class 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 classes of shares currently being offered.
2. Significant Accounting Policies
The following is a summary of the Funds' significant accounting policies:
Security valuation and fair value measurements All investments in securities are recorded at their estimated fair value. The Funds use various methods to measure fair value of their portfolio securities on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:
• Level 1 quoted prices in active markets for identical securities
• Level 2 other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 significant unobservable inputs (including 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 instruments are valued using amortized cost, in accordance with rules under the 1940 Act. 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.
The aggregate value by input level, as of September 30, 2011, for each Fund's investments, as well as a reconciliation of assets for which significant unobservable inputs (Level 3) were used in determining value, if applicable, is included in each Fund's Portfolio of Investments, which also includes a breakdown of the Fund's investments by geographic/industry concentration. The Funds did not hold any Level 3 categorized securities during the six months ended or as of September 30, 2011.
18
Notes to Financial Statements (Continued)
During the six months ended September 30, 2011, there were no significant transfers between Levels 1 and 2.
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 to the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. 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 and are categorized in Level 2. 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 and are categorized in Level 2. 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 and are categorized in Level 3. 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 and are categorized in Level 1. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates.
For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security's last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates its net asset value if an event that could materially affect the value of those securities (a "Significant Event") has occurred between the time of the security's last close and the time that the Fund calculates its net asset value.
A Significant Event may relate to a single issuer or to an entire market sector. If the Advisor or Sub-Advisor of a Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates its net asset value, it may request that a Fair Value Committee Meeting be called. In addition, the Funds' Administrator or Sub-Administrator monitors price movements among certain selected indices, securities and/or baskets of securities that may be an indicator that the closing prices received earlier from foreign exchanges or markets may not reflect market value at the time the Fund calculates its net asset value. If price movements in a monitored index or security exceed levels established by the Advisor, the Sub-Administrator notifies the Advisor or Sub-Advisor for any Fund holding the relevant securities that such limits have been exceeded. In such event, the Advisor makes the determination whether a Fair Value Committee meeting should be called based on the information provided. These securities are categorized in Level 2.
New accounting pronouncements In May 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04 "Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and the International Financial Reporting Standards (IFRS)." ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to categorize within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the implications of ASU 2011-04 and its impact on the financial statements.
19
Notes to Financial Statements (Continued)
Foreign currency translation The books and records of the Funds are maintained in U.S. dollars and translated into U.S. dollars on the following basis:
(1) market value of investment securities, assets and liabilities at the current rate of exchange on the valuation date; and
(2) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities.
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 cash collateral with the Funds' custodian in an amount at least equal to the market value of the loaned securities. The cash collateral is reinvested by the Funds' custodian into an approved investment vehicle.
As of September 30, 2011, the following Funds loaned securities and received collateral as follows:
Fund |
Fair Value of Securities Loaned |
Value of Collateral Received |
|||||||||
Diversified Small Cap Growth Fund | $ | 1,745,444 | $ | 1,881,046 | |||||||
Mid Cap Growth Fund | $ | 22,793,808 | $ | 24,314,248 |
All collateral received as cash 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 loaned securities 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 is 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 of each class of shares of each Fund is calculated daily by dividing the total value of a Fund's assets attributable to that class, less liabilities attributable to that class, by the number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the Funds is equal to the net asset value per share plus a sales load equal to 6.10% of the net asset value (or 5.75% of the offering price). The maximum offering price per share of Class B, Class C, Class Y, and Institutional Class shares of the Funds is equal to the net asset value per share.
The redemption price per share of each class of shares of the Funds is equal to the net asset value per share. However, Class B shares of the Funds are subject to a contingent deferred sales load of 5.00% in the event of a shareholder redemption within a one-year period of purchase. The contingent deferred sales load will be incrementally reduced over time. After the 6th year, there is no contingent deferred sales load. Class C shares
20
Notes to Financial Statements (Continued)
of the Funds are subject to a contingent deferred sales load of 1.00% of the original purchase price if redeemed within a one-year period from the date of purchase.
Investment income Dividend income from securities is recognized on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income from securities is recorded on the basis of interest accrued, premium amortized and discount accreted.
Distributions to shareholders Each Fund declares and distributes net investment income, if any, annually, as a dividend to shareholders. Any net realized capital gains on sales of securities for all Funds are distributed to shareholders at least annually. Income distributions and capital gain distributions are determined in accordance with income tax regulations.
Allocations Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for the Funds are allocated daily to each class of shares based upon its proportionate share of total net assets of the Fund. Class specific expenses are charged directly to the class incurring the expense. Common expenses, which are not attributable to a specific class, are allocated daily to each class of shares based upon their proportionate share of total net assets of the Fund. Expenses not directly billed to a Fund are allocated proportionally among all Funds daily in relation to net assets of each Fund or another reasonable measure.
Security transactions Security transactions are reflected for financial reporting purposes as of the trade date, which may cause the NAV as stated in the accompanying financial statements to be different than the NAV applied to Fund share transactions. Realized gains and losses on sales of portfolio securities are calculated using the identified cost basis.
Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
3. Investment Transactions
Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended September 30, 2011:
Diversified Small Cap Growth Fund |
Growth Opportunities Fund |
Large Cap Growth Fund |
Mid Cap Growth Fund |
||||||||||||||||
Purchases of investment securities | $ | 10,611,114 | $ | 114,436,036 | $ | 168,067,836 | $ | 218,061,523 | |||||||||||
Proceeds from sales and maturities | $ | 12,635,524 | $ | 94,188,154 | $ | 248,348,157 | $ | 296,483,903 |
4. Transactions with Affiliates and Other Related Parties
Certain officers of the Trust are also officers of the Advisor (Touchstone Advisors, Inc.), 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").
21
Notes to Financial Statements (Continued)
MANAGEMENT & EXPENSE LIMITATIONS AGREEMENTS
The Advisor provides general investment supervisory services for the Funds, under terms of an Advisory Agreement. Under the Advisory Agreement, the Funds pay the Advisor a fee, which is computed and accrued daily and paid monthly, at an annual rate based on average daily net assets as shown in the table below.
Diversified Small Cap Growth Fund | 1.05% | ||||||||||
Growth Opportunities Fund |
0.75% 0.70% 0.65% |
on the first $500 million on the next $500 million of such assets in excess of $1 billion |
|||||||||
Large Cap Growth Fund |
0.75% 0.70% 0.65% |
on the first $200 million on the next $800 million of such assets in excess of $1 billion |
|||||||||
Mid Cap Growth Fund |
0.75% 0.70% 0.65% |
on the first $500 million on the next $500 million of such assets in excess of $1 billion |
|||||||||
The Advisor has entered into investment sub-advisory agreements with the following parties:
Fort Washington Investment Advisors, Inc.*
Diversified Small Cap Growth Fund
Navellier & Associates, Inc.
Large Cap Growth Fund
Westfield Capital Management Company, L.P.
Growth Opportunities Fund
Mid Cap Growth Fund
* Affiliate of the Advisor
The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.
The Advisor entered into an Expense Limitation Agreement to contractually limit operating expenses of the Funds. 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, administration fees and reimburse expenses in order to maintain expense limitations for the Funds as follows:
Class A | Class B | Class C | Class Y | Institutional Class | |||||||||||||||||||
Diversified Small Cap Growth Fund | 1.40 | % | | 2.15 | % | 1.15 | % | | |||||||||||||||
Growth Opportunities Fund* | 1.24 | % | | 1.99 | % | 0.99 | % | 0.84 | % | ||||||||||||||
Large Cap Growth Fund | 1.25 | % | 2.00 | % | 2.00 | % | 0.99 | % | | ||||||||||||||
Mid Cap Growth Fund | 1.43 | % | 2.18 | % | 2.18 | % | 1.18 | % | 1.03 | % |
* Prior to July 29, 2011, the expense limitations for Class A, Class C, Class Y, and Institutional Class shares of Growth Opportunities Fund were 1.15%, 1.90%, 0.90%, and 0.75%, respectively.
These expense limitations will remain in effect until at least July 28, 2012.
22
Notes to Financial Statements (Continued)
During the six months ended September 30, 2011, the Advisor waived investment advisory fees and administration fees and/or reimbursed expenses of the Funds as follows:
Investment Advisory Fees Waived |
Administration Fees Waived |
Other Operating Expenses Reimbursed |
|||||||||||||
Diversified Small Cap Growth Fund | $ | 45,160 | $ | 34,665 | $ | 20,881 | |||||||||
Growth Opportunities Fund | $ | | $ | 163,358 | $ | 53,748 | |||||||||
Large Cap Growth Fund | $ | | $ | 473,136 | $ | | |||||||||
Mid Cap Growth Fund | $ | | $ | 40,355 | $ | |
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration and Accounting Services Agreement with the Trust, whereby the Advisor is responsible for supplying executive and regulatory compliance services, supervises the preparation of tax returns, and coordinates the preparation of reports to shareholders and reports to, and filings with, the Securities and Exchange Commission and state securities authorities, materials for meetings of the Board of Trustees, calculating the daily net asset value per share and maintaining the financial books and records of each Fund. For its services, the Advisor receives an annual fee of 0.20% of the aggregate average daily net assets of the Trust, Touchstone Investment Trust (excluding Institutional Money Market Fund), Touchstone Funds Group Trust, and Touchstone Tax-Free Trust up to and including $6 billion; 0.16% of the next $4 billion of aggregate average daily net assets; and 0.12% of the aggregate average daily net assets of all such assets in excess of $10 billion. The fee is allocated among the Funds on the basis of relative daily net assets.
The Advisor has engaged JPMorgan as the Sub-Administrator to the Trust. JPMorgan provides administrative and accounting services to the Trust and is compensated directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and JPMorgan, JPMorgan maintains the records of each shareholder's account, answers shareholders' inquiries concerning their accounts, processes purchases and redemptions of each Fund's shares, acts as dividend and distribution disbursing agent and performs other shareholder service functions. For these services, JPMorgan receives a monthly fee per shareholder account from each Fund. In addition, each Fund pays JPMorgan out-of-pocket expenses including, but not limited to, postage and supplies.
For the six months ended September 30, 2011, the following Funds reimbursed the Advisor for amounts paid to third parties that provide sub-transfer agency and other administrative services to the Funds. These amounts are included in transfer agent fees on the Statements of Operations:
Amount | |||||||
Diversified Small Cap Growth Fund | $ | 12,797 | |||||
Growth Opportunities Fund | $ | 7,662 | |||||
Large Cap Growth Fund | $ | 424,939 | |||||
Mid Cap Growth Fund | $ | 254,524 |
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which Class A shares of each Fund may directly incur or reimburse the Advisor or the Underwriter for expenses related to the distribution and promotion of shares. The annual limitation for payment of such expenses under the Class A Plan is 0.25% of average daily net assets attributable to such shares.
23
Notes to Financial Statements (Continued)
The Trust also has a Plan of Distribution (Class B and Class C Plan) under which Class B and Class C shares of each Fund may directly incur or reimburse the Advisor or the Underwriter for expenses related to the distribution and promotion of shares. The annual limitation for payment of such expenses under the Class B and Class C Plan is 1.00% of average daily net assets attributable to Class B and Class C shares.
UNDERWRITING AGREEMENT
The Underwriter is the Funds' principal underwriter and, as such, acts as exclusive agent for distribution of the Funds' shares. Under the terms of the Underwriting Agreement between the Trust and Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of shares of the following Funds during the six months ended September 30, 2011:
Amount | |||||||
Diversified Small Cap Growth Fund | $ | 666 | |||||
Growth Opportunities Fund | $ | 1,851 | |||||
Large Cap Growth Fund | $ | 14,105 | |||||
Mid Cap Growth Fund | $ | 20,467 |
In addition, the Underwriter collected contingent deferred sales charges on the redemption of Class C shares of the following Funds during the six months ended September 30, 2011:
Amount | |||||||
Diversified Small Cap Growth Fund | $ | | |||||
Growth Opportunities Fund | $ | 824 | |||||
Large Cap Growth Fund | $ | 7,622 | |||||
Mid Cap Growth Fund | $ | 6,176 |
COMPLIANCE SERVICES AGREEMENT
Under the terms of the Compliance Services Agreement between the Trust and JPMorgan, JPMorgan provides certain compliance services to the Trust and provides administrative support services to the Funds' Compliance Program and Chief Compliance Officer. For these services, JPMorgan receives an annual fee from each Fund.
AFFILIATED INVESTMENTS
Each Fund may invest in the Touchstone Institutional Money Market Fund, subject to compliance with 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, as applicable, in the Touchstone Institutional Money Market Fund for the six months ended September 30, 2011, is as follows:
Share Activity | |||||||||||||||||||||||||||
Balance 03/31/11 |
Purchases | Sales |
Balance 09/30/11 |
Dividends |
Value 09/30/11 |
||||||||||||||||||||||
Diversified Small Cap Growth Fund | $ | 570,303 | 4,842,819 | (4,352,454 | ) | 1,060,668 | $ | 586 | $ | 1,060,668 | |||||||||||||||||
Growth Opportunities Fund | $ | 5,960,100 | 53,592,571 | (56,896,662 | ) | 2,656,009 | $ | 2,830 | $ | 2,656,009 | |||||||||||||||||
Large Cap Growth Fund | $ | 18,843,499 | 184,424,105 | (193,286,770 | ) | 9,980,834 | $ | 9,649 | $ | 9,980,834 | |||||||||||||||||
Mid Cap Growth Fund | $ | 31,921,928 | 190,445,977 | (189,961,452 | ) | 32,406,453 | $ | 12,709 | $ | 32,406,453 |
24
Notes to Financial Statements (Continued)
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:
Diversified Small Cap Growth Fund |
Growth Opportunities Fund |
||||||||||||||||||
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
||||||||||||||||
Class A | |||||||||||||||||||
Shares issued | 32,553 | 378,384 | 368,658 | 623,347 | |||||||||||||||
Shares reinvested | | | | 10,304 | |||||||||||||||
Shares issued in connection with merger (A) | | | | 2,139,892 | |||||||||||||||
Shares redeemed | (691,373 | ) | (430,679 | ) | (552,567 | ) | (479,910 | ) | |||||||||||
Change in shares outstanding | (658,820 | ) | (52,295 | ) | (183,909 | ) | 2,293,633 | ||||||||||||
Shares outstanding, beginning of period | 1,346,351 | 1,398,646 | 3,835,273 | 1,541,640 | |||||||||||||||
Shares outstanding, end of period | 687,531 | 1,346,351 | 3,651,364 | 3,835,273 | |||||||||||||||
Class C | |||||||||||||||||||
Shares issued | 1,963 | 2,077 | 16,423 | 63,300 | |||||||||||||||
Shares reinvested | | | | 604 | |||||||||||||||
Shares issued in connection with merger (A) | | | | 71,974 | |||||||||||||||
Shares redeemed | (20,815 | ) | (74,947 | ) | (60,510 | ) | (100,133 | ) | |||||||||||
Change in shares outstanding | (18,852 | ) | (72,870 | ) | (44,087 | ) | 35,745 | ||||||||||||
Shares outstanding, beginning of period | 216,147 | 289,017 | 450,685 | 414,940 | |||||||||||||||
Shares outstanding, end of period | 197,295 | 216,147 | 406,598 | 450,685 | |||||||||||||||
Class Y | |||||||||||||||||||
Shares issued | 956,429 | 321,331 | 341,271 | 38,582 | |||||||||||||||
Shares reinvested | | | | 356 | |||||||||||||||
Shares redeemed | (385,873 | ) | (956,921 | ) | (27,592 | ) | (28,974 | ) | |||||||||||
Change in shares outstanding | 570,556 | (635,590 | ) | 313,679 | 9,964 | ||||||||||||||
Shares outstanding, beginning of period | 1,641,749 | 2,277,339 | 116,130 | 106,166 | |||||||||||||||
Shares outstanding, end of period | 2,212,305 | 1,641,749 | 429,809 | 116,130 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Shares issued | | | 735,775 | 1,534,668 | |||||||||||||||
Shares reinvested | | | | 11,714 | |||||||||||||||
Shares redeemed | | | (155,489 | ) | (371,672 | ) | |||||||||||||
Change in shares outstanding | | | 580,286 | 1,174,710 | |||||||||||||||
Shares outstanding, beginning of period | | | 2,214,179 | 1,039,469 | |||||||||||||||
Shares outstanding, end of period | | | 2,794,465 | 2,214,179 |
25
Notes to Financial Statements (Continued)
Large Cap Growth Fund |
Mid Cap Growth Fund |
||||||||||||||||||
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
Six Months Ended September 30, 2011 (Unaudited) |
Year Ended March 31, 2011 |
||||||||||||||||
Class A | |||||||||||||||||||
Shares issued | 873,882 | 1,717,578 | 2,088,285 | 4,762,956 | |||||||||||||||
Shares issued in connection with merger (A) | 955,798 | | | | |||||||||||||||
Shares redeemed | (4,263,009 | ) | (6,145,961 | ) | (7,870,990 | ) | (10,222,948 | ) | |||||||||||
Change in shares outstanding | (2,433,329 | ) | (4,428,383 | ) | (5,782,705 | ) | (5,459,992 | ) | |||||||||||
Shares outstanding, beginning of period | 11,697,676 | 16,126,059 | 23,450,449 | 28,910,441 | |||||||||||||||
Shares outstanding, end of period | 9,264,347 | 11,697,676 | 17,667,744 | 23,450,449 | |||||||||||||||
Class B | |||||||||||||||||||
Shares issued | 273 | 497 | 3,352 | 3,047 | |||||||||||||||
Shares redeemed | (77,186 | ) | (183,395 | ) | (281,282 | ) | (813,490 | ) | |||||||||||
Change in shares outstanding | (76,913 | ) | (182,898 | ) | (277,930 | ) | (810,443 | ) | |||||||||||
Shares outstanding, beginning of period | 564,675 | 747,573 | 1,118,887 | 1,929,330 | |||||||||||||||
Shares outstanding, end of period | 487,762 | 564,675 | 840,957 | 1,118,887 | |||||||||||||||
Class C | |||||||||||||||||||
Shares issued | 115,209 | 307,981 | 237,068 | 691,203 | |||||||||||||||
Shares issued in connection with merger (A) | 72,432 | | | | |||||||||||||||
Shares redeemed | (812,325 | ) | (2,093,465 | ) | (1,166,921 | ) | (2,807,974 | ) | |||||||||||
Change in shares outstanding | (624,684 | ) | (1,785,484 | ) | (929,853 | ) | (2,116,771 | ) | |||||||||||
Shares outstanding, beginning of period | 5,335,052 | 7,120,536 | 10,732,309 | 12,849,080 | |||||||||||||||
Shares outstanding, end of period | 4,710,368 | 5,335,052 | 9,802,456 | 10,732,309 | |||||||||||||||
Class Y | |||||||||||||||||||
Shares issued | 3,940,777 | 2,946,985 | 4,431,693 | 1,211,907 | |||||||||||||||
Shares redeemed | (3,324,039 | ) | (6,670,020 | ) | (769,388 | ) | (608,943 | ) | |||||||||||
Change in shares outstanding | 616,738 | (3,723,035 | ) | 3,662,305 | 602,964 | ||||||||||||||
Shares outstanding, beginning of period | 13,169,603 | 16,892,638 | 1,893,583 | 1,290,619 | |||||||||||||||
Shares outstanding, end of period | 13,786,341 | 13,169,603 | 5,555,888 | 1,893,583 | |||||||||||||||
Institutional Class (B) | |||||||||||||||||||
Shares issued | | | 244,293 | | |||||||||||||||
Shares redeemed | | | (3,885 | ) | | ||||||||||||||
Change in shares outstanding | | | 240,408 | | |||||||||||||||
Shares outstanding, beginning of period | | | | | |||||||||||||||
Shares outstanding, end of period | | | 240,408 | |
(A) See footnote 8 in the notes to financial statements
(B) Represents the period from commencement of operations (April 1, 2011) through September 30, 2011.
6. Federal Tax Information
Federal income tax It is each Fund's policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not
26
Notes to Financial Statements (Continued)
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 investment company taxable income (earned during the calendar year) and 98.2% of its net realized capital gains (earned during the twelve months ending October 31) plus undistributed amounts from prior years.
The tax character of distributions paid for the years ended March 31, 2011 and 2010 was as follows:
Diversified Small Cap Growth Fund |
Growth Opportunities Fund |
||||||||||||||||||
Year Ended March 31, 2011 |
Year Ended March 31, 2010 |
Year Ended March 31, 2011 |
Year Ended March 31, 2010 |
||||||||||||||||
From ordinary income | $ | | $ | | $ | 545,653 | $ | | |||||||||||
Large Cap Growth Fund |
Mid Cap Growth Fund |
||||||||||||||||||
Year Ended March 31, 2011 |
Year Ended March 31, 2010 |
Year Ended March 31, 2011 |
Year Ended March 31, 2010 |
||||||||||||||||
From ordinary income | $ | | $ | 2,186,079 | $ | | $ | | |||||||||||
From tax return of capital | | 500,658 | | | |||||||||||||||
$ | | $ | 2,686,737 | $ | | $ | |
The following information is computed on a tax basis for each item as of March 31, 2011:
Diversified Small Cap Growth Fund |
Growth Opportunities Fund |
Large Cap Growth Fund |
Mid Cap Growth Fund |
||||||||||||||||
Tax cost of portfolio investments | $ | 33,982,216 | $ | 161,087,076 | $ | 589,322,680 | $ | 793,762,392 | |||||||||||
Gross unrealized appreciation | 9,903,564 | 16,939,602 | 200,905,813 | 150,050,701 | |||||||||||||||
Gross unrealized depreciation | (734,552 | ) | (2,187,567 | ) | (297,083 | ) | (8,306,385 | ) | |||||||||||
Net unrealized appreciation (depreciation) | 9,169,012 | 14,752,035 | 200,608,730 | 141,744,316 | |||||||||||||||
Accumulated capital and other losses | (18,195,850 | ) | (33,732,626 | ) | (213,592,248 | ) | | ||||||||||||
Undistributed capital gains | | | | 28,008,948 | |||||||||||||||
Accumulated earnings (deficit) | $ | (9,026,838 | ) | $ | (18,980,591 | ) | $ | (12,983,518 | ) | $ | 169,753,264 |
The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals.
27
Notes to Financial Statements (Continued)
As of March 31, 2011, the Funds had the following capital loss carryforwards for federal income tax purposes.
Fund | Amount |
Expires March 31, |
|||||||||
Diversified Small Cap Growth Fund | $ | 8,636,383 | 2014 | ||||||||
3,627,106 | 2017 | ||||||||||
5,932,361 | 2018 | ||||||||||
$ | 18,195,850 | ||||||||||
Growth Opportunities Fund | $ | 17,098,132 | 2012 | ||||||||
1,976,702 | 2013 | ||||||||||
1,053,666 | * | 2016 | |||||||||
12,174,612 | * | 2017 | |||||||||
1,429,514 | * | 2018 | |||||||||
$ | 33,732,626 | ||||||||||
Large Cap Growth Fund | $ | 213,592,248 | 2018 |
* Amount may be limited by current income tax regulations.
The capital loss carryforwards may be utilized in future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders.
During the year ended March 31, 2011, the following Funds utilized capital loss carryforwards:
Fund | Amount | ||||||
Diversified Small Cap Growth Fund | $ | 2,800,060 | |||||
Growth Opportunities Fund | 20,668,056 | ||||||
Large Cap Growth Fund | 124,487,125 | ||||||
Mid Cap Growth Fund | 131,553,464 |
The Growth Opportunities Fund had $1,219,724 of capital losses expire unutilized during the year ended March 31, 2011.
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 which are primarily attributed to the tax treatment of net investment loss, REIT distributions, partnership investments, expiration of prior year capital loss carryovers, non-taxable distributions from underlying investments and carryovers of temporary differences due to mergers have been made to the following Funds for the year ended March 31, 2011:
Paid-In Capital |
Accumulated Net Investment Income (Loss) |
Accumulated Net Realized Gains (Losses) |
|||||||||||||
Diversified Small Cap Growth Fund | $ | (302,233 | ) | $ | 302,233 | $ | | ||||||||
Growth Opportunities Fund | $ | 11,678,569 | $ | 233,170 | $ | (11,911,739 | ) | ||||||||
Large Cap Growth Fund | $ | (3,026,802 | ) | $ | 2,972,130 | $ | 54,672 | ||||||||
Mid Cap Growth Fund | $ | (2,938,135 | ) | $ | 2,703,812 | $ | 234,323 |
28
Notes to Financial Statements (Continued)
For the six months ended September 30, 2011, the Trust had the following federal tax cost resulting in net unrealized appreciation (depreciation) as follows:
Fund |
Federal Tax Cost |
Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
|||||||||||||||
Diversified Small Cap Growth Fund | $ | 29,989,705 | $ | 3,385,981 | $ | (2,860,242 | ) | $ | 525,739 | ||||||||||
Growth Opportunities Fund | $ | 159,316,924 | $ | 4,046,506 | $ | (17,854,663 | ) | $ | (13,808,157 | ) | |||||||||
Large Cap Growth Fund | $ | 539,987,562 | $ | 145,724,143 | $ | (41,577,739 | ) | $ | 104,146,404 | ||||||||||
Mid Cap Growth Fund | $ | 701,421,840 | $ | 32,694,913 | $ | (87,474,621 | ) | $ | (54,779,708 | ) |
The Funds have analyzed their tax positions taken on Federal income tax returns for all open tax years (tax years ended March 31, 2008 through 2011) and have concluded that no provision for income tax is required in their financial statements.
The Regulated Investment Company Modernization Act of 2010 (the "Act") was enacted on December 22, 2010. The Act makes changes to several tax rules impacting the Funds. In general, the provisions of the Act will be effective for the Funds' fiscal year ending March 31, 2012. Although the Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each fund's pre-enactment capital loss carryovers may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers. Relevant information regarding the impact of the Act on the Funds, if any, will be contained within the "Federal Tax Information" section of the financial statement notes for the fiscal year ending March 31, 2012.
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. Fund Mergers
On October 8, 2010, a Special Meeting of Shareholders was held to approve or disapprove an Agreement and Plan of Reorganization providing for the transfer of all of assets and liabilities of the Touchstone Large Cap Core Equity Fund to the Growth Opportunities Fund in exchange for shares of the Growth Opportunities Fund and the subsequent liquidation of the Touchstone Large Cap Core Equity Fund. The Agreement and Plan of Reorganization was approved and the merger took place on October 22, 2010.
The merger was approved as follows:
Number of Votes | |||||||||||||||
For | Against | Abstain | |||||||||||||
Large Cap Core Equity Fund | 3,045,776 | 22,222 | 699,621 |
29
Notes to Financial Statements (Continued)
The following is a summary of shares outstanding, net assets, net asset value per share, unrealized appreciation (depreciation) and realized gain (loss) immediately before and after the reorganization:
Before Reorganization |
After Reorganization |
||||||||||||||
Large Cap Core Equity Fund |
Growth Opportunities Fund |
Growth Opportunities Fund |
|||||||||||||
Shares | 5,507,436 | 4,221,102 | 6,432,968 | ||||||||||||
Net Assets | $ | 47,429,798 | $ | 90,373,406 | $ | 137,803,204 | |||||||||
Net Asset Value | $ | 8.61 | $ | 21.41 | $ | 21.42 | |||||||||
Unrealized Appreciation (Depreciation) | $ | 5,752,014 | $ | 8,993,620 | $ | 14,745,634 | |||||||||
Accumulated Net Realized Gain (Loss) | $ | (19,856 | ) | $ | 133,833 | $ | 113,977 |
On April 21, 2011, a Special Meeting of Shareholders was held to approve or disapprove an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Healthcare and Biotechnology Fund, a series of Touchstone Funds Group Trust, to the Large Cap Growth Fund in exchange for shares of the Large Cap Growth Fund and the subsequent liquidation of the Touchstone Healthcare and Biotechnology Fund. The Agreement and Plan of Reorganization was approved and the merger took place on May 6, 2011.
The merger was approved as follows:
Number of Votes | |||||||||||||||
For | Against | Abstain | |||||||||||||
Healthcare and Biotechnology Fund | 756,446 | 79,632 | 28,822 |
The following is a summary of shares outstanding, net assets, net asset value per share, unrealized appreciation (depreciation) and realized gain (loss) immediately before and after the reorganization:
Before Reorganization |
After Reorganization |
||||||||||||||
Healthcare and Biotechnology Fund |
Large Cap Growth Fund |
Large Cap Growth Fund |
|||||||||||||
Shares | 1,487,602 | 29,733,726 | 30,761,803 | ||||||||||||
Net Assets | $ | 25,653,016 | $ | 741,478,177 | $ | 767,131,193 | |||||||||
Net Asset Value | $ | 17.24 | $ | 24.94 | $ | 24.94 | |||||||||
Unrealized Appreciation (Depreciation) | $ | 7,230,578 | $ | 184,155,041 | $ | 191,385,619 | |||||||||
Accumulated Net Realized Gain (Loss) | $ | (7,746,291 | ) | $ | (193,595,589 | ) | $ | (193,595,589 | ) |
9. Subsequent Events
During a meeting of the Board of Trustees held June 22, 2011, the Trustees unanimously approved a change in the Sub-Administrator and Transfer Agent to the Funds. Effective on or about December 3, 2011, Bank of New York Mellon will assume responsibility for these services.
Touchstone Investments and Old Mutual Asset Management announced on October 4, 2011 that Touchstone Advisors, Inc., a wholly owned subsidiary of Western & Southern Financial Group, has entered into a definitive agreement with Old Mutual Asset Management, the U.S. based global asset management business of Old Mutual plc, and its subsidiary Old Mutual Capital, Inc. for Touchstone to acquire selected assets of Old Mutual Asset Management's U.S. mutual fund business.
30
Notes to Financial Statements (Continued)
Consummation of the transaction is subject to certain conditions and approvals and is expected to be completed early in the second quarter of 2012. Upon the completion of the transaction, 17 Old Mutual Funds will be reorganized into Touchstone Funds with Old Mutual Asset Management's affiliated investment managers continuing as sub-advisors to a significant majority of the Funds.
There were no other subsequent events that necessitated recognition or disclosures.
31
Portfolio of Investments
Touchstone Diversified Small Cap Growth Fund September 30, 2011 (Unaudited)
Common Stocks 95.6% | Shares |
Market Value |
|||||||||
Health Care 21.7% | |||||||||||
Acorda Therapeutics, Inc.* | 20,800 | $ | 415,168 | ||||||||
Alexion Pharmaceuticals, Inc.* | 6,086 | 389,869 | |||||||||
Auxilium Pharmaceuticals, Inc.*† | 20,030 | 300,250 | |||||||||
BioMarin Pharmaceutical, Inc.* | 20,141 | 641,894 | |||||||||
DexCom, Inc.* | 11,855 | 142,260 | |||||||||
Fluidigm Corp.*† | 5,848 | 81,463 | |||||||||
Genomic Health, Inc.* | 26,000 | 571,480 | |||||||||
HMS Holdings Corp.* | 15,715 | 383,289 | |||||||||
Impax Laboratories, Inc.* | 9,575 | 171,488 | |||||||||
Insulet Corp.* | 28,441 | 434,010 | |||||||||
NxStage Medical, Inc.* | 30,884 | 644,240 | |||||||||
RTI Biologics, Inc.* | 74,585 | 245,385 | |||||||||
Salix Pharmaceuticals Ltd.* | 13,730 | 406,408 | |||||||||
SonoSite, Inc.* | 14,245 | 432,193 | |||||||||
Spectranetics Corp. (The)* | 48,625 | 347,182 | |||||||||
Thoratec Corp.* | 12,290 | 401,145 | |||||||||
United Therapeutics Corp.* | 6,670 | 250,058 | |||||||||
6,257,782 | |||||||||||
Information Technology 21.4% | |||||||||||
Ariba, Inc.* | 9,410 | 260,751 | |||||||||
Aruba Networks, Inc.* | 4,115 | 86,045 | |||||||||
Aspen Technology, Inc.* | 20,285 | 309,752 | |||||||||
Cadence Design Systems, Inc.* | 23,405 | 216,262 | |||||||||
Cavium, Inc.* | 12,067 | 325,930 | |||||||||
comScore, Inc.* | 19,452 | 328,155 | |||||||||
Finisar Corp.* | 20,086 | 352,308 | |||||||||
j2 Global Communications, Inc. | 11,315 | 304,374 | |||||||||
MAXIMUS, Inc. | 10,647 | 371,580 | |||||||||
Mellanox Technologies Ltd.* | 11,855 | 370,113 | |||||||||
MICROS Systems, Inc.* | 7,188 | 315,625 | |||||||||
Microsemi Corp.* | 21,137 | 337,769 | |||||||||
Multi-Fineline Electronix, Inc.* | 12,266 | 244,584 | |||||||||
Netscout Systems, Inc.* | 13,369 | 152,674 | |||||||||
Parametric Technology Corp.* | 15,060 | 231,623 | |||||||||
Polycom, Inc.* | 11,010 | 202,254 | |||||||||
RF Micro Devices, Inc.* | 52,815 | 334,847 | |||||||||
Riverbed Technology, Inc.* | 11,043 | 220,418 | |||||||||
Skyworks Solutions, Inc.* | 10,497 | 188,316 | |||||||||
Taleo Corp. - Class A* | 10,886 | 279,988 | |||||||||
VeriFone Systems, Inc.* | 9,291 | 325,371 | |||||||||
Virtusa Corp.* | 18,915 | 249,678 | |||||||||
VistaPrint NV* | 5,815 | 157,180 | |||||||||
6,165,597 | |||||||||||
Consumer Discretionary 19.8% | |||||||||||
99 Cents Only Stores* | 20,373 | 375,271 | |||||||||
American Public Education, Inc.* | 9,538 | 324,292 | |||||||||
Big Lots, Inc.* | 13,029 | 453,800 | |||||||||
BJ's Restaurants, Inc.* | 7,084 | 312,475 | |||||||||
Body Central Corp.* | 19,740 | 358,478 | |||||||||
Buffalo Wild Wings, Inc.*† | 5,030 | 300,794 | |||||||||
Capella Education Co.* | 9,592 | 272,221 | |||||||||
Cato Corp. (The) - Class A | 14,348 | 323,691 |
Shares |
Market Value |
||||||||||
Chico's FAS, Inc. | 22,967 | $ | 262,513 | ||||||||
Coinstar, Inc.*† | 11,925 | 477,000 | |||||||||
Deckers Outdoor Corp.* | 2,398 | 223,637 | |||||||||
DSW, Inc. - Class A | 6,925 | 319,797 | |||||||||
LKQ Corp.* | 8,787 | 212,294 | |||||||||
Steiner Leisure Ltd.* | 6,345 | 258,686 | |||||||||
Texas Roadhouse, Inc. | 22,170 | 293,087 | |||||||||
Tractor Supply Co. | 4,627 | 289,419 | |||||||||
Tupperware Brands Corp. | 3,625 | 194,808 | |||||||||
Vera Bradley, Inc.*† | 12,605 | 454,410 | |||||||||
5,706,673 | |||||||||||
Industrials 14.8% | |||||||||||
Aerovironment, Inc.* | 6,830 | 192,265 | |||||||||
American Science & Engineering, Inc. | 2,430 | 148,352 | |||||||||
Applied Industrial Technologies, Inc. | 14,040 | 381,326 | |||||||||
Ceradyne, Inc.* | 11,811 | 317,598 | |||||||||
CLARCOR, Inc. | 11,685 | 483,525 | |||||||||
Clean Harbors, Inc.* | 5,475 | 280,867 | |||||||||
ESCO Technologies, Inc. | 9,215 | 234,982 | |||||||||
HUB Group, Inc. - Class A* | 11,334 | 320,412 | |||||||||
Landstar System, Inc. | 8,440 | 333,886 | |||||||||
MasTec, Inc.* | 8,100 | 142,641 | |||||||||
Raven Industries, Inc. | 1,549 | 74,662 | |||||||||
Rollins, Inc. | 16,820 | 314,702 | |||||||||
Toro Co. | 5,965 | 293,896 | |||||||||
Triumph Group, Inc. | 4,660 | 227,128 | |||||||||
Wabtec Corp. | 7,088 | 374,743 | |||||||||
Woodward, Inc. | 5,762 | 157,879 | |||||||||
4,278,864 | |||||||||||
Financials 9.0% | |||||||||||
Cash America International, Inc. | 8,165 | 417,721 | |||||||||
Encore Capital Group, Inc.* | 15,428 | 337,102 | |||||||||
Ezcorp, Inc. - Class A* | 21,230 | 605,904 | |||||||||
Financial Engines, Inc.* | 6,910 | 125,140 | |||||||||
First Cash Financial Services, Inc.* | 16,190 | 679,171 | |||||||||
Portfolio Recovery Associates, Inc.* | 7,024 | 437,033 | |||||||||
2,602,071 | |||||||||||
Energy 6.5% | |||||||||||
Brigham Exploration Co.* | 13,590 | 343,283 | |||||||||
CARBO Ceramics, Inc. | 716 | 73,411 | |||||||||
Dril-Quip, Inc.* | 5,570 | 300,279 | |||||||||
Gulfport Energy Corp.* | 4,855 | 117,394 | |||||||||
Lufkin Industries, Inc. | 4,275 | 227,473 | |||||||||
Newpark Resources, Inc.* | 45,875 | 279,379 | |||||||||
Petroquest Energy, Inc.*† | 49,472 | 272,096 | |||||||||
World Fuel Services Corp. | 7,984 | 260,678 | |||||||||
1,873,993 | |||||||||||
Materials 1.7% | |||||||||||
Balchem Corp. | 8,732 | 325,791 | |||||||||
LSB Industries, Inc.* | 5,477 | 157,025 | |||||||||
482,816 |
32
Touchstone Diversified Small Cap Growth Fund (Continued)
Common Stocks 95.6% (Continued) | Shares |
Market Value |
|||||||||
Telecommunication Services 0.7% | |||||||||||
NTELOS Holdings Corp. | 11,615 | $ | 205,934 | ||||||||
Total Common Stocks | $ | 27,573,730 | |||||||||
Investment Funds 10.2% | |||||||||||
Invesco Liquid Assets Portfolio** | 1,881,046 | 1,881,046 | |||||||||
Touchstone Institutional Money Market Fund^ |
1,060,668 | 1,060,668 | |||||||||
Total Investment Funds | $ | 2,941,714 | |||||||||
Total Investment Securities 105.8% (Cost $29,617,429) |
$ | 30,515,444 | |||||||||
Liabilities in Excess of Other Assets (5.8%) | (1,678,409 | ) | |||||||||
Net Assets 100.0% | $ | 28,837,035 |
* Non-income producing security.
† All or a portion of the security is on loan. The total value of the securities on loan as of September 30, 2011, was $1,745,444.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.
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 |
$ | 27,573,730 | $ | | $ | | $ | 27,573,730 | |||||||||||
Investment Funds |
2,941,714 | | | 2,941,714 | |||||||||||||||
$ | 30,515,444 |
See accompanying notes to financial statements.
33
Portfolio of Investments
Touchstone Growth Opportunities Fund September 30, 2011 (Unaudited)
Common Stocks 98.1% | Shares |
Market Value |
|||||||||
Information Technology 38.4% | |||||||||||
Alliance Data Systems Corp.* | 38,430 | $ | 3,562,461 | ||||||||
Apple, Inc.* | 21,860 | 8,332,595 | |||||||||
ATMI, Inc.* | 58,445 | 924,600 | |||||||||
Autodesk, Inc.* | 58,080 | 1,613,462 | |||||||||
Broadcom Corp. - Class A* | 88,350 | 2,941,171 | |||||||||
Cavium, Inc.* | 94,170 | 2,543,532 | |||||||||
Check Point Software Technologies Ltd.* | 57,640 | 3,041,086 | |||||||||
Cisco Systems, Inc. | 232,548 | 3,602,169 | |||||||||
Citrix Systems, Inc.* | 53,240 | 2,903,177 | |||||||||
EMC Corp.* | 137,370 | 2,883,396 | |||||||||
Google, Inc. - Class A* | 8,500 | 4,372,230 | |||||||||
Mastercard, Inc. - Class A | 9,070 | 2,876,641 | |||||||||
NICE Systems Ltd. ADR* | 77,517 | 2,352,641 | |||||||||
Nuance Communications, Inc.* | 140,020 | 2,850,807 | |||||||||
Oracle Corp. | 131,625 | 3,782,903 | |||||||||
QUALCOMM, Inc. | 78,949 | 3,839,290 | |||||||||
Red Hat, Inc.* | 82,150 | 3,471,659 | |||||||||
55,893,820 | |||||||||||
Industrials 17.7% | |||||||||||
Avis Budget Group, Inc.* | 231,450 | 2,238,121 | |||||||||
BE Aerospace, Inc.* | 98,060 | 3,246,767 | |||||||||
Danaher Corp. | 66,470 | 2,787,752 | |||||||||
Dover Corp. | 53,670 | 2,501,022 | |||||||||
FedEx Corp. | 50,460 | 3,415,133 | |||||||||
General Electric Co. | 191,030 | 2,911,297 | |||||||||
Hexcel Corp.* | 116,823 | 2,588,798 | |||||||||
IDEX Corp. | 86,460 | 2,694,093 | |||||||||
United Technologies Corp. | 48,480 | 3,411,053 | |||||||||
25,794,036 | |||||||||||
Health Care 12.6% | |||||||||||
Celgene Corp.* | 89,000 | 5,510,880 | |||||||||
DENTSPLY International, Inc. | 120,140 | 3,687,097 | |||||||||
Gilead Sciences, Inc.* | 84,470 | 3,277,436 | |||||||||
Hill-Rom Holdings, Inc. | 74,980 | 2,250,899 | |||||||||
Vertex Pharmaceuticals, Inc.* | 81,720 | 3,639,809 | |||||||||
18,366,121 | |||||||||||
Materials 8.9% | |||||||||||
Celanese Corp. | 81,490 | 2,650,870 | |||||||||
Dow Chemical Co. (The) | 104,020 | 2,336,289 | |||||||||
Greif, Inc. - Class A | 48,160 | 2,065,583 | |||||||||
International Flavors & Fragrances, Inc. | 51,124 | 2,874,191 | |||||||||
Westlake Chemical Corp. | 86,461 | 2,963,883 | |||||||||
12,890,816 | |||||||||||
Energy 7.4% | |||||||||||
Halliburton Co. | 68,790 | 2,099,471 | |||||||||
National Oilwell Varco, Inc. | 58,300 | 2,986,126 | |||||||||
Tesoro Corp.* | 183,523 | 3,573,193 | |||||||||
Weatherford International Ltd.* | 175,130 | 2,138,337 | |||||||||
10,797,127 |
Shares |
Market Value |
||||||||||
Consumer Staples 7.0% | |||||||||||
General Mills, Inc. | 86,350 | $ | 3,321,885 | ||||||||
Hershey Co. (The) | 52,780 | 3,126,687 | |||||||||
Ralcorp Holdings, Inc.* | 48,550 | 3,724,270 | |||||||||
10,172,842 | |||||||||||
Consumer Discretionary 6.1% | |||||||||||
Nordstrom, Inc. | 59,960 | 2,738,973 | |||||||||
Penn National Gaming, Inc.* | 87,230 | 2,903,887 | |||||||||
Tenneco, Inc.* | 128,666 | 3,295,136 | |||||||||
8,937,996 | |||||||||||
Total Common Stocks | $ | 142,852,758 | |||||||||
Investment Fund 1.8% | |||||||||||
Touchstone Institutional Money Market Fund^ |
2,656,009 | 2,656,009 | |||||||||
Total Investment Securities 99.9% (Cost $159,166,552) |
$ | 145,508,767 | |||||||||
Other Assets in Excess of Liabilities 0.1% | 205,480 | ||||||||||
Net Assets 100.0% | $ | 145,714,247 |
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.
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 |
$ | 142,852,758 | $ | | $ | | $ | 142,852,758 | |||||||||||
Investment Funds |
2,656,009 | | | 2,656,009 | |||||||||||||||
$ | 145,508,767 |
See accompanying notes to financial statements.
34
Portfolio of Investments
Touchstone Large Cap Growth Fund September 30, 2011 (Unaudited)
Common Stocks 98.5% | Shares |
Market Value |
|||||||||
Consumer Discretionary 32.4% | |||||||||||
Amazon.com, Inc.* | 73,707 | $ | 15,937,665 | ||||||||
AutoZone, Inc.* | 78,780 | 25,145,788 | |||||||||
Chipotle Mexican Grill, Inc.* | 82,935 | 25,125,158 | |||||||||
DIRECTV Group, Inc. - Class A* | 371,595 | 15,699,889 | |||||||||
Dollar Tree, Inc.* | 261,200 | 19,618,732 | |||||||||
Family Dollar Stores, Inc. | 368,657 | 18,749,895 | |||||||||
McDonald's Corp. | 219,100 | 19,241,362 | |||||||||
Ralph Lauren Corp. | 98,200 | 12,736,540 | |||||||||
Starbucks Corp. | 364,000 | 13,573,560 | |||||||||
Tiffany & Co. | 225,000 | 13,684,500 | |||||||||
TJX Cos., Inc. | 271,700 | 15,071,199 | |||||||||
Yum! Brands, Inc. | 279,400 | 13,799,566 | |||||||||
208,383,854 | |||||||||||
Information Technology 17.7% | |||||||||||
Altera Corp. | 275,500 | 8,686,515 | |||||||||
Apple, Inc.* | 46,695 | 17,799,200 | |||||||||
Baidu, Inc. ADR* | 165,960 | 17,742,784 | |||||||||
Cognizant Technology Solutions Corp. - Class A* |
285,170 | 17,880,159 | |||||||||
International Business Machines Corp. | 123,840 | 21,675,715 | |||||||||
Mastercard, Inc. - Class A | 39,450 | 12,511,962 | |||||||||
Salesforce.com, Inc.* | 155,500 | 17,770,540 | |||||||||
114,066,875 | |||||||||||
Consumer Staples 17.0% | |||||||||||
Cia de Bebidas das Americas ADR | 401,400 | 12,302,910 | |||||||||
Coca-Cola Co. (The) | 213,300 | 14,410,548 | |||||||||
Estee Lauder Cos., Inc. (The) - Class A | 193,000 | 16,953,120 | |||||||||
Green Mountain Coffee Roasters, Inc.* | 196,300 | 18,244,122 | |||||||||
Hershey Co. (The) | 254,200 | 15,058,808 | |||||||||
Mead Johnson Nutrition Co. | 279,450 | 19,234,544 | |||||||||
Reynolds American, Inc. | 349,600 | 13,103,008 | |||||||||
109,307,060 | |||||||||||
Health Care 13.1% | |||||||||||
AmerisourceBergen Corp. | 388,375 | 14,474,736 | |||||||||
Biogen Idec, Inc.* | 150,000 | 13,972,500 | |||||||||
Cerner Corp.* | 268,740 | 18,414,065 | |||||||||
Edwards Lifesciences Corp.* | 157,000 | 11,190,960 | |||||||||
Perrigo Co. | 143,140 | 13,900,326 | |||||||||
UnitedHealth Group, Inc. | 262,950 | 12,127,254 | |||||||||
84,079,841 | |||||||||||
Energy 9.6% | |||||||||||
Chevron Corp. | 137,900 | 12,758,508 | |||||||||
Concho Resources, Inc.* | 136,310 | 9,697,093 | |||||||||
ConocoPhillips | 176,540 | 11,178,513 | |||||||||
El Paso Corp. | 725,000 | 12,673,000 | |||||||||
Marathon Oil Corp. | 287,350 | 6,201,013 | |||||||||
Pioneer Natural Resources Co. | 139,200 | 9,155,184 | |||||||||
61,663,311 |
Shares |
Market Value |
||||||||||
Industrials 5.0% | |||||||||||
Caterpillar, Inc. | 137,900 | $ | 10,182,536 | ||||||||
Deere & Co. | 206,220 | 13,315,625 | |||||||||
Rockwell Automation, Inc. | 160,100 | 8,965,600 | |||||||||
32,463,761 | |||||||||||
Telecommunication Services 2.2% | |||||||||||
BCE, Inc. | 377,000 | 14,122,420 | |||||||||
Materials 1.5% | |||||||||||
Silver Wheaton Corp. | 341,800 | 10,066,010 | |||||||||
Total Common Stocks | $ | 634,153,132 | |||||||||
Investment Fund 1.6% | |||||||||||
Touchstone Institutional Money Market Fund^ |
9,980,834 | 9,980,834 | |||||||||
Total Investment Securities 100.1% (Cost $538,927,265) |
$ | 644,133,966 | |||||||||
Liabilities in Excess of Other Assets (0.1%) | (720,173 | ) | |||||||||
Net Assets 100.0% | $ | 643,413,793 |
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.
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 |
$ | 634,153,132 | $ | | $ | | $ | 634,153,132 | |||||||||||
Investment Funds |
9,980,834 | | | 9,980,834 | |||||||||||||||
$ | 644,133,966 |
See accompanying notes to financial statements.
35
Portfolio of Investments
Touchstone Mid Cap Growth Fund September 30, 2011 (Unaudited)
Common Stocks 95.6% | Shares |
Market Value |
|||||||||
Information Technology 24.8% | |||||||||||
Alliance Data Systems Corp.* | 203,040 | $ | 18,821,808 | ||||||||
Autodesk, Inc.* | 484,730 | 13,465,799 | |||||||||
Avago Technologies Ltd. | 343,524 | 11,257,281 | |||||||||
BMC Software, Inc.* | 225,260 | 8,686,026 | |||||||||
Check Point Software Technologies Ltd.* | 303,760 | 16,026,378 | |||||||||
Gartner, Inc.* | 376,610 | 13,132,391 | |||||||||
Juniper Networks, Inc.* | 196,000 | 3,382,960 | |||||||||
NICE Systems Ltd. ADR* | 456,850 | 13,865,398 | |||||||||
ON Semiconductor Corp.* | 1,640,173 | 11,760,040 | |||||||||
Red Hat, Inc.* | 346,340 | 14,636,328 | |||||||||
Salesforce.com, Inc.* | 119,695 | 13,678,745 | |||||||||
Teradata Corp.* | 264,800 | 14,174,744 | |||||||||
152,887,898 | |||||||||||
Consumer Discretionary 13.4% | |||||||||||
Coach, Inc. | 244,971 | 12,696,847 | |||||||||
Discovery Communications, Inc. - Class A* | 309,030 | 11,625,708 | |||||||||
Lear Corp. | 465,300 | 19,961,370 | |||||||||
Nordstrom, Inc. | 259,050 | 11,833,404 | |||||||||
Penn National Gaming, Inc.*† | 469,868 | 15,641,906 | |||||||||
Priceline.com, Inc.* | 23,935 | 10,757,825 | |||||||||
82,517,060 | |||||||||||
Materials 12.8% | |||||||||||
Albemarle Corp. | 198,510 | 8,019,804 | |||||||||
Crown Holdings, Inc.* | 356,197 | 10,903,190 | |||||||||
Ecolab, Inc. | 317,480 | 15,521,597 | |||||||||
Greif, Inc. - Class A | 292,840 | 12,559,908 | |||||||||
International Flavors & Fragrances, Inc. | 242,155 | 13,613,954 | |||||||||
Molycorp, Inc.*† | 238,640 | 7,844,097 | |||||||||
Solutia, Inc.* | 817,978 | 10,511,017 | |||||||||
78,973,567 | |||||||||||
Health Care 12.6% | |||||||||||
DENTSPLY International, Inc. | 530,070 | 16,267,848 | |||||||||
Life Technologies Corp.* | 225,260 | 8,656,742 | |||||||||
Mettler-Toledo International, Inc.* | 124,210 | 17,384,432 | |||||||||
United Therapeutics Corp.* | 335,885 | 12,592,329 | |||||||||
Vertex Pharmaceuticals, Inc.* | 360,010 | 16,034,845 | |||||||||
Warner Chilcott PLC - Class A* | 460,370 | 6,583,291 | |||||||||
77,519,487 | |||||||||||
Energy 12.4% | |||||||||||
Alpha Natural Resources, Inc.*† | 368,890 | 6,525,664 | |||||||||
CONSOL Energy, Inc. | 289,470 | 9,821,717 | |||||||||
Denbury Resources, Inc.* | 874,250 | 10,053,875 | |||||||||
Ensco PLC ADR | 268,260 | 10,845,752 | |||||||||
Tesoro Corp.* | 990,510 | 19,285,230 | |||||||||
Valero Energy Corp. | 508,020 | 9,032,595 | |||||||||
Weatherford International Ltd.* | 918,290 | 11,212,321 | |||||||||
76,777,154 | |||||||||||
Industrials 8.4% | |||||||||||
Cooper Industries PLC | 268,910 | 12,402,129 | |||||||||
Dover Corp. | 261,450 | 12,183,570 |
Shares |
Market Value |
||||||||||
IDEX Corp. | 373,080 | $ | 11,625,173 | ||||||||
Precision Castparts Corp. | 98,850 | 15,367,221 | |||||||||
51,578,093 | |||||||||||
Financials 5.6% | |||||||||||
Ameriprise Financial, Inc. | 250,600 | 9,863,616 | |||||||||
Discover Financial Services | 613,830 | 14,081,260 | |||||||||
IntercontinentalExchange, Inc.* | 91,510 | 10,821,973 | |||||||||
34,766,849 | |||||||||||
Consumer Staples 4.1% | |||||||||||
Green Mountain Coffee Roasters, Inc.* | 90,100 | 8,373,894 | |||||||||
Ralcorp Holdings, Inc.* | 223,150 | 17,117,836 | |||||||||
25,491,730 | |||||||||||
Telecommunication Services 1.5% | |||||||||||
NII Holdings, Inc.* | 349,150 | 9,409,593 | |||||||||
Total Common Stocks | $ | 589,921,431 | |||||||||
Investment Funds 9.2% | |||||||||||
Invesco Liquid Assets Portfolio** | 24,314,248 | 24,314,248 | |||||||||
Touchstone Institutional Money Market Fund^ |
32,406,453 | 32,406,453 | |||||||||
Total Investment Funds | $ | 56,720,701 | |||||||||
Total Investment Securities 104.8% (Cost $698,047,303) |
$ | 646,642,132 | |||||||||
Liabilities in Excess of Other Assets (4.8%) | (29,709,680 | ) | |||||||||
Net Assets 100.0% | $ | 616,932,452 |
* Non-income producing security.
† All or a portion of the security is on loan. The total value of the securities on loan as of September 30, 2011, was $22,793,808.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc. See Note 4.
Portfolio Abbreviations:
ADR American Depositary Receipt
PLC Public Limited Company
36
Touchstone Mid Cap Growth Fund (Continued)
Other Information:
The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the security valuation section in the accompanying notes to financial statements.
Valuation Inputs at Reporting Date:
Description | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Common Stocks |
$ | 589,921,431 | $ | | $ | | $ | 589,921,431 | |||||||||||
Investment Funds |
56,720,701 | | | 56,720,701 | |||||||||||||||
$ | 646,642,132 |
See accompanying notes to financial statements.
37
Other Items (Unaudited)
Proxy Voting Guidelines
The Sub-Advisors are responsible for exercising the voting rights associated with the securities purchased and held by the Funds. A description of the policies and procedures that the Sub-Advisors use in fulfilling this responsibility 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 (April 1, 2011 through September 30, 2011).
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 September 30, 2011" 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.
38
Other Items (Continued)
Net Expense Ratio Annualized September 30, 2011 |
Beginning Account Value April 1, 2011 |
Ending Account Value September 30, 2011 |
Expenses Paid During the Six Months Ended September 30, 2011 * |
||||||||||||||||
Touchstone Diversified Small Cap Growth Fund | |||||||||||||||||||
Class A Actual | 1.40 | % | $ | 1,000.00 | $ | 794.00 | $ | 6.28 | |||||||||||
Class A Hypothetical | 1.40 | % | $ | 1,000.00 | $ | 1,018.00 | $ | 7.06 | |||||||||||
Class C Actual | 2.15 | % | $ | 1,000.00 | $ | 790.30 | $ | 9.62 | |||||||||||
Class C Hypothetical | 2.15 | % | $ | 1,000.00 | $ | 1,014.25 | $ | 10.83 | |||||||||||
Class Y Actual | 1.15 | % | $ | 1,000.00 | $ | 794.60 | $ | 5.16 | |||||||||||
Class Y Hypothetical | 1.15 | % | $ | 1,000.00 | $ | 1,019.25 | $ | 5.81 | |||||||||||
Touchstone Growth Opportunities Fund | |||||||||||||||||||
Class A Actual | 1.18 | % | $ | 1,000.00 | $ | 791.80 | $ | 5.29 | |||||||||||
Class A Hypothetical | 1.18 | % | $ | 1,000.00 | $ | 1,019.10 | $ | 5.96 | |||||||||||
Class C Actual | 1.93 | % | $ | 1,000.00 | $ | 788.90 | $ | 8.63 | |||||||||||
Class C Hypothetical | 1.93 | % | $ | 1,000.00 | $ | 1,015.35 | $ | 9.72 | |||||||||||
Class Y Actual | 0.95 | % | $ | 1,000.00 | $ | 792.80 | $ | 4.26 | |||||||||||
Class Y Hypothetical | 0.95 | % | $ | 1,000.00 | $ | 1,020.25 | $ | 4.80 | |||||||||||
Institutional Class Actual | 0.78 | % | $ | 1,000.00 | $ | 793.40 | $ | 3.50 | |||||||||||
Institutional Class Hypothetical | 0.78 | % | $ | 1,000.00 | $ | 1,021.10 | $ | 3.94 | |||||||||||
Touchstone Large Cap Growth Fund | |||||||||||||||||||
Class A Actual | 1.25 | % | $ | 1,000.00 | $ | 915.80 | $ | 5.99 | |||||||||||
Class A Hypothetical | 1.25 | % | $ | 1,000.00 | $ | 1,018.75 | $ | 6.31 | |||||||||||
Class B Actual | 1.37 | % | $ | 1,000.00 | $ | 915.70 | $ | 6.56 | |||||||||||
Class B Hypothetical | 1.37 | % | $ | 1,000.00 | $ | 1,018.15 | $ | 6.91 | |||||||||||
Class C Actual | 2.00 | % | $ | 1,000.00 | $ | 912.80 | $ | 9.56 | |||||||||||
Class C Hypothetical | 2.00 | % | $ | 1,000.00 | $ | 1,015.00 | $ | 10.08 | |||||||||||
Class Y Actual | 0.99 | % | $ | 1,000.00 | $ | 917.40 | $ | 4.75 | |||||||||||
Class Y Hypothetical | 0.99 | % | $ | 1,000.00 | $ | 1,020.05 | $ | 5.00 | |||||||||||
Touchstone Mid Cap Growth Fund | |||||||||||||||||||
Class A Actual | 1.36 | % | $ | 1,000.00 | $ | 764.80 | $ | 6.00 | |||||||||||
Class A Hypothetical | 1.36 | % | $ | 1,000.00 | $ | 1,018.20 | $ | 6.86 | |||||||||||
Class B Actual | 1.22 | % | $ | 1,000.00 | $ | 759.30 | $ | 5.37 | |||||||||||
Class B Hypothetical | 1.22 | % | $ | 1,000.00 | $ | 1,018.90 | $ | 6.16 | |||||||||||
Class C Actual | 2.10 | % | $ | 1,000.00 | $ | 762.10 | $ | 9.25 | |||||||||||
Class C Hypothetical | 2.10 | % | $ | 1,000.00 | $ | 1,014.50 | $ | 10.58 | |||||||||||
Class Y Actual | 1.07 | % | $ | 1,000.00 | $ | 766.30 | $ | 4.72 | |||||||||||
Class Y Hypothetical | 1.07 | % | $ | 1,000.00 | $ | 1,019.65 | $ | 5.40 | |||||||||||
Institutional Class Actual | 1.01 | % | $ | 1,000.00 | $ | 759.30 | $ | 4.44 | |||||||||||
Institutional Class Hypothetical | 1.01 | % | $ | 1,000.00 | $ | 1,019.95 | $ | 5.10 |
* 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).
39
PRIVACY PROTECTION POLICY
We Respect Your Privacy
Thank you for your decision to invest with us. Touchstone and its affiliates have always placed a high value on the trust and confidence our clients place in us. We believe that confidence must be earned and validated through time. In today's world, when technology allows the sharing of information at light speeds, trust must be reinforced by our sincere pledge to take the steps necessary to ensure that the information you share with us is treated with respect and confidentiality.
Our Pledge to Our Clients
• We collect only the information we need to service your account and administer our business.
• We are committed to keeping your information confidential and we place strict limits and controls on the use and sharing of your information.
• We make every effort to ensure the accuracy of your information.
We Collect the Following Nonpublic Personal Information About You:
• Information we receive from you on or in applications or other forms, correspondence, or conversations, including, but not limited to, your name, address, phone number, social security number, assets, income and date of birth; and
• Information about your transactions with us, our affiliates, or others, including, but not limited to, your account number and balance, payment history, parties to transactions, cost basis information, and other financial information.
Categories of Information We Disclose and Parties to Whom We Disclose
We do not disclose any nonpublic personal information about our current or former clients to nonaffiliated third parties, except as required or permitted by law.
We Place Strict Limits and Controls on the Use and Sharing of Your Information
• We restrict access to nonpublic personal information about you to authorized employees who need the information to administer your business.
• We maintain physical, electronic and procedural safeguards that comply with federal standards to protect this information.
• We do not disclose any nonpublic personal information about our current or former clients to anyone, except as required or permitted by law or as described in this document.
• We will not sell your personal information to anyone.
We May Provide Information to Service Your Account
Sometimes it is necessary to provide information about you to various companies such as transfer agents, custodians, broker-dealers and marketing service firms to facilitate the servicing of your account. These organizations have a legitimate business need to see some of your personal information in order for us to provide service to you. We may disclose to these various companies the information that we collect as described above. We require that these companies, including our own subsidiaries and affiliates, strictly maintain the confidentiality of this information and abide by all applicable laws. Companies within our corporate family that may receive this information are financial service providers and insurance companies. We do not permit these associated companies to sell the information for their own purposes, and we never sell our customer information.
This policy is applicable to the following affiliated companies: Touchstone Funds Group Trust, Touchstone 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®
The Privacy Protection Policy is not part of the Semi-Annual Report.
40
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303 Broadway, Suite 1100
Cincinnati, OH 45202-4203
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-54-TST-SAR-1110
Item 2. Code of Ethics.
Not required for Semiannual Reports.
Item 3. Audit Committee Financial Expert.
Not required for Semiannual Reports.
Item 4. Principal Accountant Fees and Services.
Not required for Semiannual Reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable
Item 6. Schedule of Investments.
(a) The Schedule of Investments in securities of unaffiliated issuers is included in the Semiannual Report.
(b) Not Applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
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 candidates 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 registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) the registrants principal executive officer and principal financial officer have concluded that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants second fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting.
Item 12. Exhibits.
(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 Strategic Trust |
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By (Signature and Title) |
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/s/ Jill T. McGruder |
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Jill T. McGruder |
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President |
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Date: December 8, 2011 |
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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) |
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/s/ Jill T. McGruder |
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Jill T. McGruder |
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President |
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Date: December 8, 2011 |
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/s/ Terrie A. Wiedenheft |
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Terrie A. Wiedenheft |
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Controller & Treasurer |
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Date: December 8, 2011 |
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Exhibit 99.CERT
CERTIFICATIONS
I, Jill T. McGruder, certify that:
1. I have reviewed this report on Form N-CSR of Touchstone Strategic Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c ) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: |
December 8, 2011 |
|
/s/ Jill T. McGruder |
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Jill T. McGruder | |
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President |
CERTIFICATIONS
I, Terrie A. Wiedenheft, certify that:
1. I have reviewed this report on Form N-CSR of Touchstone Strategic Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c ) Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
(d) Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: |
December 8, 2011 |
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/s/ Terrie A. Wiedenheft |
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Terrie A. Wiedenheft | |
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Controller & Treasurer |
Exhibit 99.906CERT
CERTIFICATION
Jill T. McGruder, Chief Executive Officer, and Terrie A. Wiedenheft, Chief Financial Officer of Touchstone Strategic Trust (the Registrant), each certify to the best of his or her knowledge that:
1. The Registrants periodic report on Form N-CSR for the period ended September 30, 2011 (the Form N-CSR) fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Chief Executive Officer |
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Chief Financial Officer |
Touchstone Strategic Trust |
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Touchstone Strategic Trust |
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/s/ Jill T. McGruder |
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/s/ Terrie A. Wiedenheft |
Jill T. McGruder |
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Terrie A. Wiedenheft |
Date: December 8, 2011 |
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Date: December 8, 2011 |
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the Commission) or its staff upon request.
This certification is being furnished to the Commission solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR filed with the Commission.
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