N-CSRS 1 v777387_ncsrs.htm N-CSRS

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 811-03651

Touchstone Strategic Trust

(Exact name of registrant as specified in charter)

303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203

(Address of principal executive offices) (Zip code)

Jill T. McGruder
303 Broadway, Suite 1100
Cincinnati, Ohio 45202-4203

(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 2012

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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

September 30, 2012

(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
Portfolio Investments:
Touchstone Diversified Small Cap Growth Fund	4
Touchstone Growth Opportunities Fund	6
Touchstone Large Cap Growth Fund	8
Touchstone Mid Cap Growth Fund	9
Statements of Assets and Liabilities	11 - 12
Statements of Operations	13
Statements of Changes in Net Assets	14 - 15
Statements of Changes in Net Assets - Capital Stock Activity	16 - 19
Financial Highlights	20 - 28
Notes to Financial Statements	29 - 40
Other Items	41 - 43
Privacy Protection Policy	44

Tabular Presentation of Portfolios of Investments (Unaudited)

September 30, 2012

Touchstone Diversified Small Cap Growth Fund
Sector Allocation*	(% of Net Assets)
Health Care		25.5	%
Information Technology		19.9
Consumer Discretionary		17.4
Industrials		15.6
Energy		7.2
Materials		5.1
Financials		4.9
Consumer Staples		2.2
Investment Funds		11.1
Other Assets/Liabilities(Net)		(8.9	)
Total		100.0	%

Touchstone Growth Opportunities Fund
Sector Allocation*	(% of Net Assets)
Information Technology		32.4	%
Consumer Discretionary		12.3
Industrials		12.0
Health Care		11.6
Energy		9.5
Consumer Staples		7.8
Financials		6.3
Materials		4.9
Investment Funds		3.8
Other Assets/Liabilities(Net)		(0.6	)
Total		100.0	%

Touchstone Large Cap Growth Fund
Sector Allocation*	(% of Net Assets)
Consumer Discretionary		28.0	%
Information Technology		25.6
Health Care		14.3
Consumer Staples		13.5
Utilities		5.6
Financials		5.2
Telecommunication Services		4.1
Energy		2.1
Investment Funds		1.8
Other Assets/Liabilities(Net)		(0.2	)
Total		100.0	%

Touchstone Mid Cap Growth Fund
Sector Allocation*	(% of Net Assets)
Consumer Discretionary		21.3	%
Information Technology		20.5
Health Care		14.5
Energy		12.1
Industrials		11.6
Financials		7.2
Materials		5.9
Consumer Staples		4.2
Investment Fund		3.3
Other Assets/Liabilities(Net)		(0.6	)
Total		100.0	%

* Sector classifications are based upon the Global Industry Classification Standard (GICS^®)

Portfolio of Investments

Touchstone Diversified Small Cap Growth Fund – September 30, 2012 (Unaudited)

			Market
	Shares		Value

Common Stocks — 97.8%

Health Care — 25.5%
Acorda Therapeutics, Inc.*		16,660	$	426,663
Align Technology, Inc.*		8,945		330,697
Auxilium Pharmaceuticals, Inc.*		19,920		487,243
AVEO Pharmaceuticals, Inc.†*		10,995		114,459
BioMarin Pharmaceutical, Inc.*		11,636		468,582
DexCom, Inc.*		15,350		230,710
Endologix, Inc.*		17,315		239,293
Fluidigm Corp.*		21,084		358,428
Genomic Health, Inc.*		10,732		372,293
HMS Holdings Corp.*		11,040		369,067
Impax Laboratories, Inc.*		15,650		406,274
Insulet Corp.*		19,856		428,492
NxStage Medical, Inc.*		29,344		387,634
Onyx Pharmaceuticals, Inc.*		9,210		778,245
RTI Biologics, Inc.*		70,545		294,173
Salix Pharmaceuticals Ltd.*		6,865		290,664
Spectranetics Corp. (The)*		40,695		600,251
Thoratec Corp.*		13,665		472,809
United Therapeutics Corp.*		3,260		182,169
Vocera Communications, Inc.*		9,075		280,508
Wright Medical Group, Inc.*		10,290		227,512
				7,746,166

Information Technology — 19.9%
Ancestry.com, Inc.†*		9,665		290,723
Aruba Networks, Inc.*		17,001		382,267
Aspen Technology, Inc.*		16,825		434,926
Blackbaud, Inc.		13,385		320,169
Cadence Design Systems, Inc.*		28,960		372,570
comScore, Inc.*		12,647		192,867
FEI Co.		7,045		376,908
Interxion Holding NV*		14,235		323,419
j2 Global, Inc.		10,765		353,307
MAXIMUS, Inc.		8,735		521,654
Mellanox Technologies Ltd. (Israel)†*		1,645		167,017
MICROS Systems, Inc.*		4,888		240,099
Microsemi Corp.*		18,007		361,400
Multi-Fineline Electronix, Inc.*		6,717		151,468
Parametric Technology Corp.*		11,762		256,412
Power Integrations, Inc.		5,775		175,733
Skyworks Solutions, Inc.*		8,961		211,167
Synaptics, Inc.†*		7,555		181,471
SYNNEX Corp.*		6,325		206,068
Virtusa Corp.*		16,545		294,005
VistaPrint NV (Netherlands)†*		6,935		236,830
				6,050,480

Consumer Discretionary — 17.4%
Big Lots, Inc.*		11,404		337,330
BJ's Restaurants, Inc.†*		9,064		411,052
Buffalo Wild Wings, Inc.*		4,210		360,965
Cato Corp. (The) - Class A		9,893		293,921
Chico's FAS, Inc.		23,862		432,141
Cinemark Holdings, Inc.		15,605		350,020
Coinstar, Inc.†*		7,545		339,374
Deckers Outdoor Corp.†*		4,848		177,631
DSW, Inc. - Class A		4,565		304,577
Life Time Fitness, Inc.*		7,455		340,992
Papa John's International, Inc.*		6,930		370,131
rue21, Inc.*		10,630		331,124
Steiner Leisure Ltd. (Bahamas)*		5,960		277,438
Texas Roadhouse, Inc.		21,415		366,196
True Religion Apparel, Inc.		9,975		212,767
Vera Bradley, Inc.†*		15,300		364,905
				5,270,564

Industrials — 15.6%
Applied Industrial Technologies, Inc.		8,705		360,648
Belden, Inc.		9,295		342,800
CLARCOR, Inc.		3,870		172,718
Encore Capital Group, Inc.*		8,113		229,273
EnerSys*		4,870		171,862
ESCO Technologies, Inc.		8,102		314,763
Forward Air Corp.		9,218		280,319
Lindsay Corp.		2,203		158,550
Middleby Corp.*		2,852		329,805
Old Dominion Freight Line, Inc.*		10,353		312,231
Portfolio Recovery Associates, Inc.*		3,023		315,692
Raven Industries, Inc.		6,393		188,147
Rollins, Inc.		8,975		209,925
Sykes Enterprises, Inc.*		17,510		235,334
Tetra Tech, Inc.*		14,100		370,266
Triumph Group, Inc.		5,095		318,590
Wabtec Corp.		2,813		225,856
Woodward, Inc.		5,972		202,929
				4,739,708

Energy — 7.2%
Dril-Quip, Inc.*		4,155		298,661
Energy XXI Bermuda Ltd.		11,440		399,828
Gulfport Energy Corp.*		17,465		545,956
Lufkin Industries, Inc.		2,615		140,739
Newpark Resources, Inc.*		18,160		134,566
Oasis Petroleum, Inc.*		13,390		394,603
Petroquest Energy, Inc.*		37,662		252,712
				2,167,065

Materials — 5.1%
Flotek Industries, Inc.*		20,955		265,500
Hecla Mining Co.†		58,475		383,011
LSB Industries, Inc.*		12,696		556,974
TPC Group, Inc.*		8,480		346,069
				1,551,554

Financials — 4.9%
Cash America International, Inc.		6,845		264,012
Ezcorp, Inc. - Class A*		18,645		427,530
Financial Engines, Inc.*		5,785		137,857
First Cash Financial Services, Inc.*		14,210		653,802
				1,483,201

Consumer Staples — 2.2%
Boston Beer Co., Inc. (The) - Class A†*		1,434		160,566
Darling International, Inc.*		9,630		176,133

Touchstone Diversified Small Cap Growth Fund – (Continued)

			Market
	Shares		Value

Common Stocks — 97.8% (Continued)

Consumer Staples — (Continued)
Lancaster Colony Corp.		2,247	$	164,593
Pricesmart, Inc.		2,350		177,942
				679,234
Total Common Stocks			$	29,687,972

Investment Funds — 11.1%
Invesco Government & Agency
Portfolio**		2,684,106		2,684,106
Touchstone Institutional Money Market
Fund^		680,850		680,850
Total Investment Funds			$	3,364,956

Total Investment Securities —108.9%
(Cost $29,236,755)			$	33,052,928

Liabilities in Excess of Other Assets — (8.9%)				(2,701,436	)

Net Assets — 100.0%			$	30,351,492

†	All or a portion of the security is on loan. The total value of the securities on loan as of September 30, 2012 was $2,615,068.


*	Non-income producing security.

**	Represents collateral for securities loaned.

^	Affiliated Fund. See Note 4 in Notes to Financial Statements.

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	$	29,687,972	$	—	$	—	$	29,687,972
Investment
Funds		3,364,956		—		—		3,364,956
							$	33,052,928

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Growth Opportunities Fund – September 30, 2012 (Unaudited)

			Market
	Shares		Value

Common Stocks — 96.8%

Information Technology — 32.4%
Alliance Data Systems Corp.*	30,570	$	4,339,412
Apple, Inc.	20,385		13,602,095
Check Point Software Technologies Ltd.
(Israel)*	54,990		2,648,318
Citrix Systems, Inc.*	41,400		3,169,998
Cognizant Technology Solutions Corp. -
Class A*	43,730		3,057,602
EMC Corp.*	101,270		2,761,633
Google, Inc. - Class A*	8,170		6,164,265
Mastercard, Inc. - Class A	8,700		3,927,876
MoneyGram International, Inc.*	121,199		1,810,713
NICE Systems Ltd. ADR (Israel)*	74,027		2,459,178
Nuance Communications, Inc.*	120,380		2,996,258
Oracle Corp.	110,820		3,489,722
Qualcomm, Inc.	37,649		2,352,686
Red Hat, Inc.*	57,970		3,300,812
Salesforce.com, Inc.*	21,840		3,334,750
			59,415,318

Consumer Discretionary — 12.3%
Amazon.com, Inc.*	10,400		2,644,928
Gannett Co., Inc.	101,270		1,797,542
Home Depot, Inc. (The)	45,000		2,716,650
Nordstrom, Inc.	57,230		3,157,951
NVR, Inc.*	3,413		2,882,278
O'Reilly Automotive, Inc.*	19,760		1,652,331
Starbucks Corp.	38,830		1,970,622
Walt Disney Co. (The)	35,470		1,854,372
Williams-Sonoma, Inc.	85,700		3,768,229
			22,444,903

Industrials — 12.0%
BE Aerospace, Inc.*	45,401		1,911,382
Danaher Corp.	63,480		3,500,922
General Electric Co.	121,260		2,753,815
Hexcel Corp.*	111,853		2,686,709
JB Hunt Transport Services, Inc.	33,970		1,767,799
Landstar System, Inc.	33,440		1,581,043
Stanley Black & Decker, Inc.	57,480		4,382,850
WESCO International, Inc.*	59,860		3,423,992
			22,008,512

Health Care — 11.6%
ArthroCare Corp.*	121,650		3,941,460
Celgene Corp.*	76,860		5,872,104
Cooper Cos., Inc. (The)	31,420		2,967,933
Medivation, Inc.*	28,230		1,591,043
Thermo Fisher Scientific, Inc.	67,940		3,996,910
Watson Pharmaceuticals, Inc.*	33,540		2,856,266
			21,225,716

Energy — 9.5%
Halliburton Co.	56,000		1,886,640
National Oilwell Varco, Inc.	31,420		2,517,056
Tesoro Corp.	142,463		5,969,200
Valero Energy Corp.	126,110		3,995,165

Weatherford International Ltd.
(Switzerland)*	232,480		2,947,846
			17,315,907

Consumer Staples — 7.8%
Hershey Co. (The)	50,530		3,582,072
Kraft Foods, Inc. - Class A	142,030		5,872,940
Ralcorp Holdings, Inc.*	66,030		4,820,190
			14,275,202

Financials — 6.3%
Ameriprise Financial, Inc.	43,920		2,489,825
CBRE Group, Inc. - Class A*	159,660		2,939,341
Citigroup, Inc.	74,640		2,442,221
JPMorgan Chase & Co.	90,390		3,658,987
			11,530,374

Materials — 4.9%
International Paper Co.	54,350		1,973,992
Monsanto Co.	20,590		1,874,102
PPG Industries, Inc.	26,750		3,071,970
Westlake Chemical Corp.†	28,771		2,102,009
			9,022,073
Total Common Stocks		$	177,238,005

Investment Funds — 3.8%
Invesco Government & Agency
Portfolio**	1,281,105		1,281,105
Touchstone Institutional Money Market
Fund^	5,716,406		5,716,406
Total Investment Funds		$	6,997,511

Total Investment Securities —100.6%
(Cost $174,603,437)		$	184,235,516

Liabilities in Excess of Other Assets — (0.6%)			(1,151,575	)

Net Assets — 100.0%		$	183,083,941

†	All or a portion of the security is on loan. The total value of the securities on loan as of September 30, 2012 was $1,252,979.

*	Non-income producing security.

**	Represents collateral for securities loaned.

^	Affiliated Fund. See Note 4 in Notes to Financial Statements.

Touchstone Growth Opportunities Fund (Continued)

Other Information:

*Valuation inputs at Reporting Date:*
	*Description*		*Level 1*		*Level 2*		*Level 3*		*Total*
	Common
	Stocks	$	177,238,005	$	—	$	—	$	177,238,005
	Investment
	Funds		6,997,511		—		—	$	6,997,511
								$	184,235,516

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Large Cap Growth Fund – September 30, 2012 (Unaudited)

			Market
	Shares		Value

Common Stocks — 98.4%

Consumer Discretionary — 28.0%
Comcast Corp. - Class A	548,810	$	19,630,934
Dollar General Corp.*	404,700		20,858,238
Dollar Tree, Inc.*	424,545		20,494,910
Foot Locker, Inc.	534,275		18,966,762
Home Depot, Inc. (The)	390,965		23,602,557
Macy's, Inc.	612,745		23,051,467
Ross Stores, Inc.	454,025		29,330,015
TJX Cos, Inc.	656,310		29,396,125
Toll Brothers, Inc.*	585,100		19,442,873
Ulta Salon Cosmetics & Fragrance, Inc.	263,410		25,367,700
Walt Disney Co. (The)	381,330		19,935,932
Wyndham Worldwide Corp.	432,455		22,695,238
			272,772,751

Information Technology — 25.6%
Alliance Data Systems Corp.*	246,410		34,977,900
Apple, Inc.	56,470		37,680,172
ASML Holding NV	335,915		18,031,917
Equinix, Inc.*	175,027		36,064,313
International Business Machines Corp.	150,435		31,207,741
Mastercard, Inc. - Class A	48,865		22,061,570
Seagate Technology PLC	657,610		20,385,910
VeriSign, Inc.*	414,820		20,197,586
Visa, Inc. - Class A	217,454		29,199,723
			249,806,832

Health Care — 14.3%
Alexion Pharmaceuticals, Inc.*	333,866		38,194,270
Biogen Idec, Inc.*	178,625		26,656,209
Bristol-Myers Squibb Co.	767,880		25,915,950
Merck & Co., Inc.	431,090		19,442,159
Perrigo Co.	255,630		29,696,537
			139,905,125

Consumer Staples — 13.5%
Altria Group, Inc.	607,055		20,269,566
Church & Dwight Co., Inc.	433,558		23,407,796
Costco Wholesale Corp.	205,630		20,588,704
Hershey Co. (The)	251,380		17,820,328
Wal-Mart Stores, Inc.	246,635		18,201,663
Whole Foods Market, Inc.	321,245		31,289,263
			131,577,320

Utilities — 5.6%
NiSource, Inc.	784,225		19,982,053
Southern Co. (The)	399,710		18,422,635
Xcel Energy, Inc.	593,180		16,437,018
			54,841,706

Financials — 5.2%
American Tower Corp. REIT	424,385		30,296,845
US Bancorp	580,800		19,921,440
			50,218,285


Telecommunication Services — 4.1%
BCE, Inc. (Canada)	461,285		20,268,864
Crown Castle International Corp.*	309,743		19,854,526
			40,123,390

Energy — 2.1%
Williams Co, Inc. (The)	587,200		20,534,384
Total Common Stocks		$	959,779,793

Investment Fund — 1.8%
Touchstone Institutional Money Market
Fund^	17,657,689		17,657,689

Total Investment Securities —100.2%
(Cost $813,550,120)		$	977,437,482

Liabilities in Excess of Other Assets — (0.2%)			(2,148,642	)

Net Assets — 100.0%		$	975,288,840

*	Non-income producing security.

^	Affiliated Fund. See Note 4 in Notes to Financial Statements.

Portfolio Abbreviations:

PLC - Public Limited Company

REIT - Real Estate Investment Trust

Other Information:

Valuation inputs at Reporting Date:
	*Description*		*Level 1*		*Level 2*		*Level 3*		*Total*
	Common
	Stocks	$	959,779,793	$	—	$	—	$	959,779,793
	Investment
	Fund		17,657,689		—		—		17,657,689
								$	977,437,482

See accompanying Notes to Financial Statements.

Portfolio of Investments

Touchstone Mid Cap Growth Fund – September 30, 2012 (Unaudited)

			Market
	Shares		Value

Common Stocks — 97.3%

Consumer Discretionary — 21.3%
AMC Networks, Inc.*		180,830	$	7,869,722
Bed Bath & Beyond, Inc.*		145,590		9,172,170
Darden Restaurants, Inc.		114,940		6,407,905
Discovery Communications, Inc.- Class
A*		199,220		11,879,489
Dollar General Corp.*		236,000		12,163,440
Gannett Co., Inc.		348,010		6,177,178
GNC Holdings, Inc. - Class A		156,310		6,091,401
Jarden Corp.		259,760		13,725,718
Mattel, Inc.		324,120		11,499,778
Nordstrom, Inc.		206,880		11,415,638
NVR, Inc.*		11,858		10,014,081
Penn National Gaming, Inc.*		196,538		8,470,788
Starwood Hotels & Resorts Worldwide,
Inc.		140,220		8,127,151
Wynn Resorts Ltd.		86,590		9,995,950
				133,010,409

Information Technology — 20.5%
Alliance Data Systems Corp.*		136,770		19,414,502
Altera Corp.		167,810		5,703,023
Autodesk, Inc.*		375,460		12,529,100
Avago Technologies Ltd. (Singapore)		127,194		4,434,619
Check Point Software Technologies Ltd.
(Israel)*		242,900		11,698,064
F5 Networks, Inc.*		75,640		7,919,507
Gartner, Inc.*		175,356		8,082,158
NetApp, Inc.*		144,050		4,736,363
NICE Systems Ltd. ADR (Israel)*		363,960		12,090,751
Red Hat, Inc.*		206,880		11,779,747
Salesforce.com, Inc.*		109,575		16,731,007
Skyworks Solutions, Inc.*		130,400		3,072,875
Teradata Corp.*		89,650		6,760,506
VeriFone Systems, Inc.*		111,420		3,103,047
				128,055,269

Health Care — 14.5%
Cardinal Health, Inc.		162,460		6,331,066
Cooper Cos., Inc. (The)		156,309		14,764,948
DENTSPLY International, Inc.		358,600		13,677,004
Hologic, Inc.*		728,690		14,748,686
Mettler-Toledo International, Inc.*		74,709		12,755,815
Vertex Pharmaceuticals, Inc.*		226,040		12,646,938
Warner Chilcott PLC - Class A (Ireland)*		367,800		4,965,299
Watson Pharmaceuticals, Inc.*		123,360		10,505,338
				90,395,094

Energy — 12.1%
CONSOL Energy, Inc.		329,480		9,900,874
Denbury Resources, Inc.*		621,420		10,042,147
Ensco PLC - Class A		186,960		10,200,538
Tesoro Corp.		462,810		19,391,739
Valero Energy Corp.		489,630		15,511,478
Weatherford International Ltd.
(Switzerland)*		855,890		10,852,685
				75,899,461

Industrials — 11.6%
IDEX Corp.	298,070		12,450,384
IHS, Inc. - Class A*	99,935		9,728,672
JB Hunt Transport Services, Inc.	161,680		8,413,827
Precision Castparts Corp.	78,920		12,890,793
Stanley Black & Decker, Inc.	199,990		15,249,238
Triumph Group, Inc.	127,200		7,953,816
United Rentals, Inc.*	182,370		5,965,323
			72,652,053

Financials — 7.2%
Ameriprise Financial, Inc.	260,520		14,768,879
CBRE Group, Inc. - Class A*	652,833		12,018,656
Discover Financial Services	231,400		9,193,522
Willis Group Holdings PLC (United
Kingdom)	237,530		8,769,608
			44,750,665

Materials — 5.9%
Crown Holdings, Inc.*	334,077		12,277,330
Eastman Chemical Co.	193,635		11,039,129
Ecolab, Inc.	209,950		13,606,860
			36,923,319

Consumer Staples — 4.2%
Ralcorp Holdings, Inc.*	233,700		17,060,100
Whole Foods Market, Inc.	96,548		9,403,775
			26,463,875
Total Common Stocks		$	608,150,145

Investment Fund — 3.3%

Touchstone Institutional Money Market
Fund^	20,519,411		20,519,411
Total Investment Securities —100.6%
(Cost $568,183,535)		$	628,669,556

Liabilities in Excess of Other Assets — (0.6%)			(3,674,348	)

Net Assets — 100.0%		$	624,995,208

*	Non-income producing security.

^	Affiliated Fund. See Note 4 in Notes to Financial Statements.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PLC - Public Limited Company

Touchstone Mid Cap Growth Fund (Continued)

Other Information:

Valuation inputs at Reporting Date:
	Description	Level 1		Level 2		Level 3		Total
	Common
	Stocks	$	608,150,145	$	—	$	—	$	608,150,145
	Investment
	Fund		20,519,411		—		—		20,519,411
								$	628,669,556

See accompanying Notes to Financial Statements.

Statements of Assets and Liabilities

September 30, 2012 (Unaudited)

	Touchstone
	Diversified			Touchstone			Touchstone			Touchstone
	Small Cap			Growth			Large Cap			Mid Cap
	Growth			Opportunities			Growth			Growth
	Fund			Fund			Fund			Fund
Assets
Investments, at cost	$	29,236,755		$	174,603,437		$	813,550,120		$	568,183,535
Affiliated securities, at market value	$	680,850		$	5,716,406		$	17,657,689		$	20,519,411
Non-affiliated securities, at market value		32,372,078			178,519,110			959,779,793			608,150,145
Investments, at market value ^(A)	$	33,052,928		$	184,235,516		$	977,437,482		$	628,669,556
Dividends and interest receivable		541			75,290			1,149,237			267,835
Receivable for capital shares sold		2,492			151,177			1,489,907			538,748
Receivable for investments sold		120,323			1,356,716			—			3,421,721
Receivable for securities lending income		2,902			69			18,690			—
Tax reclaim receivable		—			—			—			10,463
Other assets		14,170			16,734			37,355			36,163
Total Assets		33,193,356			185,835,502			980,132,671			632,944,486

Liabilities
Bank overdrafts		—			5,735			—			—
Payable for return of collateral for securities on loan		2,684,106			1,281,105			—			—
Payable for capital shares redeemed		17,769			744,838			3,419,906			2,132,437
Payable for investments purchased		73,107			464,854			—			4,681,520
Payable to Investment Advisor		18,893			134,558			575,683			378,390
Payable to other affiliates		3,212			30,918			302,802			273,461
Payable to Trustees		3,601			4,142			2,530			3,730
Payable for professional services		13,156			12,819			3,608			12,337
Payable to Transfer Agent		13,578			39,685			476,218			419,081
Other accrued expenses and liabilities		14,442			32,907			63,084			48,322
Total Liabilities		2,841,864			2,751,561			4,843,831			7,949,278

Net Assets	$	30,351,492		$	183,083,941		$	975,288,840		$	624,995,208

Net assets consist of:
Paid-in capital	$	40,234,550		$	184,228,458		$	834,996,036		$	535,893,199
Accumulated net investment income (loss)		(122,975	)		(142,302	)		385,327			(856,041	)
Accumulated net realized gains (losses) on investments		(13,576,256	)		(10,634,294	)		(23,979,885	)		29,472,029
Net unrealized appreciation on investments		3,816,173			9,632,079			163,887,362			60,486,021
Net Assets	$	30,351,492		$	183,083,941		$	975,288,840		$	624,995,208

^(A)Includes market value of securities on loan of:	$	2,615,068		$	1,252,979		$	—		$	—

See accompanying Notes to Financial Statements.

Statements of Assets and Liabilities (Continued)

	Touchstone
	Diversified		Touchstone		Touchstone		Touchstone
	Small Cap		Growth		Large Cap		Mid Cap
	Growth		Opportunities		Growth		Growth
	Fund		Fund		Fund		Fund

Pricing of Class A Shares
Net assets applicable to Class A shares	$	7,033,041	$	71,653,554	$	302,993,456	$	294,435,658
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value)		617,166		2,761,174		11,003,333		13,172,173
Net asset value and redemption price per share	$	11.40	$	25.95	$	27.54	$	22.35
Maximum offering price per share *	$	12.10	$	27.53	$	29.22	$	23.71

Pricing of Class B Shares
Net assets applicable to Class B shares	$	—	$	—	$	8,687,743	$	6,949,437
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value)		—		—		331,403		377,866
Net asset value and offering price per share**	$	—	$	—	$	26.22	$	18.39

Pricing of Class C Shares
Net assets applicable to Class C shares	$	1,658,513	$	9,205,943	$	115,741,197	$	143,775,161
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value)		151,184		385,540		4,448,639		7,900,423
Net asset value and offering price per share**	$	10.97	$	23.88	$	26.02	$	18.20

Pricing of Class Y Shares
Net assets applicable to Class Y shares	$	21,659,938	$	31,312,335	$	547,866,444	$	141,837,232
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value)		1,873,107		1,197,565		19,658,316		6,272,024
Net asset value, offering price and redemption price per share	$	11.56	$	26.15	$	27.87	$	22.61

Pricing of Institutional Class shares
Net assets applicable to Institutional Class shares	$	—	$	70,912,109	$	—	$	37,997,720
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no par value)		—		2,697,478		—		1,678,139
Net asset value, offering price and redemption price per share	$	—	$	26.29	$	—	$	22.64

* There is no sales load on subscriptions of $1 million or more. Redemptions that were part of a $1 million or more subscription may be subject to a contingent deferred sales load.

** Redemption price per share varies by length of time shares are held.

See accompanying Notes to Financial Statements.

Statements of Operations

For the Six Months Ended September 30, 2012 (Unaudited)

	Touchstone			Touchstone
	Diversified			Growth			Touchstone			Touchstone
	Small Cap			Opportunities			Large Cap			Mid Cap
	Growth Fund			Fund			Growth Fund			Growth Fund
Investment Income
Dividends from affiliated securities	$	999		$	2,105		$	14,216		$	13,520
Dividends from non-affiliated securities^(A)		62,842			666,344			5,140,929			3,780,790
Income from securities loaned		14,121			482			39,244			1,316
Total Investment Income		77,962			668,931			5,194,389			3,795,626
Expenses
Investment advisory fees		167,446			566,611			2,806,845			2,265,740
Administration fees		29,714			140,506			732,462			569,388
Compliance fees and expenses		716			716			716			716
Custody fees		218			961			4,540			4,699
Professional fees		9,615			12,344			28,739			24,344
Transfer Agent fees, Class A		8,672			27,897			130,629			260,175
Transfer Agent fees, Class B		—			—			10,682			16,849
Transfer Agent fees, Class C		3,046			7,774			66,738			139,737
Transfer Agent fees, Class Y		9,256			3,947			315,103			57,999
Transfer Agent fees, Institutional Class		—			595			—			1,145
Registration fees, Class A		4,883			12,793			9,701			7,299
Registration fees, Class B		—			—			5,550			2,899
Registration fees, Class C		4,382			4,746			7,918			4,704
Registration fees, Class Y		5,928			10,375			13,093			9,127
Registration fees, Institutional Class		—			5,763			—			2,283
Reports to Shareholders, Class A		4,260			6,755			18,556			27,527
Reports to Shareholders, Class B		—			—			4,292			4,667
Reports to Shareholders, Class C		3,484			3,695			10,647			18,184
Reports to Shareholders, Class Y		3,779			3,995			35,714			7,822
Reports to Shareholders, Institutional Class		—			3,376			—			3,671
Distribution expenses, Class A		8,816			73,629			307,034			373,806
Distribution expenses, Class B		—			—			16,359			12,840
Distribution expenses, Class C		8,691			42,884			575,048			735,484
Trustee fees		3,602			3,632			3,794			3,774
Other expenses		4,430			12,727			55,736			106,849
Total Expenses		280,938			945,721			5,159,896			4,661,728
Fees waived and/or reimbursed by the Advisor and/or Affiliates^(B)		(80,001	)		(134,488	)		(351,588	)		(10,061	)
Net Expenses		200,937			811,233			4,808,308			4,651,667
Net Investment Income (Loss)		(122,975	)		(142,302	)		386,081			(856,041	)
Realized and Unrealized Gain (Loss) on Investments
Net realized gain on investments		1,166,475			6,923,455			96,146,926			20,542,007
Net change in unrealized depreciation on investments^(C)		(1,414,538	)		(4,500,179	)		(102,416,118	)		(24,222,566	)

Net Realized and Unrealized Gain (Loss) on Investments		(248,063	)		2,423,276			(6,269,192	)		(3,680,559	)

Change in Net Assets Resulting from Operations	$	(371,038	)	$	2,280,974		$	(5,883,111	)	$	(4,536,600	)

^(A)Net of foreign tax withholding of:	$	—		$	—		$	74,448		$	9,565

^(B)See Note 4 in Notes to Financial Statements.

^(C) Change in unrealized depreciation does not include unrealized appreciation of $10,318,849 for the Growth Opportunities Fund and $83,525,044 for the Large Cap Growth Fund, in connection with the Fund merger that occurred on September 10, 2012. See Note 7 in Notes to Financial Statements.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets

	Touchstone Diversified Small Cap Growth Fund						Touchstone Growth Opportunities Fund
	For the						For the
	Six Months						Six Months
	Ended						Ended
	September			For the Year			September			For the Year
	30,2012			Ended			30,2012			Ended
	(Unaudited)			March 31,2012			(Unaudited)			March 31,2012
From Operations
Net investment income (loss)	$	(122,975	)	$	(282,000	)	$	(142,302	)	$	(610,314	)
Net realized gain on investments		1,166,475			4,197,671			6,923,455			9,529,797
Net change in unrealized depreciation on investments		(1,414,538	)		(4,682,853	)		(4,500,179	)		(11,239,370	)
Change in Net Assets from Operations		(371,038	)		(767,182	)		2,280,974			(2,319,887	)

Distributions to Shareholders from:
Net investment income, Class Y		—			—			—			—
Net realized gains, Class A		—			—			—			—
Net realized gains, Class B		—			—			—			—
Net realized gains, Class C		—			—			—			—
Net realized gains, Class Y		—			—			—			—
Net realized gains, Institutional Class		—			—			—			—
Total Distributions		—			—			—			—

Net Increase (Decrease) from Share Transactions^(A)		(4,681,133	)		(1,301,686	)		26,500,875			(10,229,168	)

Total Increase (Decrease) in Net Assets		(5,052,171	)		(2,068,868	)		28,781,849			(12,549,055	)

Net Assets
Beginning of period		35,403,663			37,472,531			154,302,092			166,851,147
End of period	$	30,351,492		$	35,403,663		$	183,083,941		$	154,302,092

Accumulated Net Investment Income (Loss)	$	(122,975	)	$	—		$	(142,302	)	$	—

^(A)For details on share transactions, by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 18-21.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets (Continued)

Touchstone Large Cap Growth Fund						Touchstone Mid Cap Growth Fund
	For the						For the
	Six Months						Six Months
	Ended						Ended
	September			For the Year			September			For the Year
	30,2012			Ended			30,2012			Ended
	(Unaudited)			March 31,2012			(Unaudited)			March 31,2012

$	386,081		$	639,110		$	(856,041	)	$	(6,679,455	)
	96,146,926			103,254,141			20,542,007			29,614,594
	(102,416,118	)		(27,105,080	)		(24,222,566	)		(63,726,763	)
	(5,883,111	)		76,788,171			(4,536,600	)		(40,791,624	)


	(639,864	)		—			—			—
	—			—			—			(21,193,881	)
	—			—			—			(951,498	)
	—			—			—			(11,853,901	)
	—			—			—			(6,874,624	)
	—			—			—			(1,141,754	)
	(639,864	)		—			—			(42,015,658	)

	230,614,117			(89,789,576	)		(23,793,623	)		(142,178,322	)

	224,091,142			(13,001,405	)		(28,330,223	)		(224,985,604	)


	751,197,698			764,199,103			653,325,431			878,311,035
$	975,288,840		$	751,197,698		$	624,995,208		$	653,325,431

$	385,327		$	639,110		$	(856,041	)	$	—

Statements of Changes in Net Assets - Capital Stock Activity

	Touchstone Diversified Small Cap Growth Fund
	For the Six Months Ended September 30, 2012 (Unaudited)						For the Year Ended March 31, 2012
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from shares issued		23,578		$	254,174			77,886		$	844,906
Proceeds from shares issued in connection with merger^(A)		—			—			—			—
Cost of shares redeemed		(81,417	)		(886,850	)		(749,232	)		(8,654,791	)
Change in Class A Share Transactions		(57,839	)		(632,676	)		(671,346	)		(7,809,885	)
Class C
Proceeds from shares issued		506			5,376			2,670			28,834
Proceeds from shares issued in connection with merger^(A)		—			—			—			—
Cost of shares redeemed		(31,909	)		(336,398	)		(36,230	)		(386,880	)
Change in Class C Share Transactions		(31,403	)		(331,022	)		(33,560	)		(358,046	)
Class Y
Proceeds from shares issued		188,554			2,072,542			1,185,403			13,511,349
Proceeds from shares issued in connection with merger^(A)		—			—			—			—
Cost of shares redeemed		(533,583	)		(5,789,977	)		(609,016	)		(6,645,104	)
Change in Class Y Share Transactions		(345,029	)		(3,717,435	)		576,387			6,866,245
Institutional Class
Proceeds from shares issued		—			—			—			—
Cost of shares redeemed		—			—			—			—
Change in Institutional Class Share Transactions		—			—			—			—

Change from Share Transactions		(434,271	)	$	(4,681,133	)		(128,519	)	$	(1,301,686	)

^(A) See Note 7 in the Notes to Financial Statements.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets - Capital Stock Activity (Continued)

Touchstone Growth Opportunities Fund
For the Six Months Ended September 30, 2012 (Unaudited)						For the Year Ended March 31, 2012
Shares			Dollars			Shares			Dollars

	50,784		$	1,253,237			638,852		$	14,956,666

	572,780			14,817,828			—			—
	(291,017	)		(7,121,082	)		(2,045,498	)		(44,968,032	)
	332,547			8,949,983			(1,406,646	)		(30,011,366	)

	17,479			389,383			38,297			841,612
	20,324			483,997			—			—
	(37,835	)		(838,007	)		(103,410	)		(2,237,050	)
	(32	)		35,373			(65,113	)		(1,395,438	)

	96,194			2,313,489			994,535			22,419,776
	1,938,310			50,516,751			—			—
	(1,311,829	)		(34,069,751	)		(635,775	)		(14,363,604	)
	722,675			18,760,489			358,760			8,056,172

	1,532,907			39,591,279			1,026,245			25,061,590
	(1,560,722	)		(40,836,249	)		(515,131	)		(11,940,126	)
	(27,815	)		(1,244,970	)		511,114			13,121,464

	1,027,375		$	26,500,875			(601,885	)	$	(10,229,168	)

Statements of Changes in Net Assets - Capital Stock Activity (Continued)

	Touchstone Large Cap Growth Fund
	For the Six Months Ended September 30, 2012 (Unaudited)						For the Year Ended March 31, 2012
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from shares issued		1,458,918		$	39,780,806			2,082,450		$	59,405,827
Proceeds from shares issued in connection with merger^(A)		2,188,990			60,528,345			955,798			23,922,198
Reinvestment of distributions		—			—			—			—
Cost of shares redeemed		(1,241,040	)		(33,846,978	)		(6,139,459	)		(156,470,510	)
Change in Class A Share Transactions		2,406,868			66,462,173			(3,101,211	)		(73,142,485	)
Class B
Proceeds from Shares issued		156			4,132			1,323			32,460
Reinvestment of distributions		—			—			—			—
Cost of Shares redeemed		(82,381	)		(2,143,213	)		(152,370	)		(3,787,039	)
Change in Class B Share Transactions		(82,225	)		(2,139,081	)		(151,047	)		(3,754,579	)
Class C
Proceeds from shares issued		411,483			10,618,934			365,654			8,640,062
Proceeds from shares issued in connection with merger^(A)		39,069			1,021,152			72,432			1,730,818
Reinvestment of distributions		—			—			—			—
Cost of shares redeemed		(424,194	)		(10,957,158	)		(1,350,857	)		(33,431,998	)
Change in Class C Share Transactions		26,358			682,928			(912,771	)		(23,061,118	)
Class Y
Proceeds from shares issued		2,825,163			78,174,098			6,346,782			161,647,798
Proceeds from shares issued in connection with merger^(A)		6,984,781			195,449,178			—			—
Reinvestment of distributions		21,557			593,239			—			—
Cost of shares redeemed		(3,896,167	)		(108,608,418	)		(5,793,403	)		(151,479,192	)
Change in Class Y Share Transactions		5,935,334			165,608,097			553,379			10,168,606
Institutional Class
Proceeds from shares issued		—			—			—			—
Reinvestment of distributions		—			—			—			—
Cost of shares redeemed		—			—			—			—
Change in Institutional Class Share Transactions		—			—			—			—

Change from Share Transactions		8,286,335		$	230,614,117			(3,611,650	)	$	(89,789,576	)

^(A) See Note 7 in the Notes to Financial Statements.

See accompanying Notes to Financial Statements.

Statements of Changes in Net Assets - Capital Stock Activity (Continued)

Touchstone Mid Cap Growth Fund
For the Six Months Ended September 30, 2012 (Unaudited)						For the Year Ended March 31, 2012
Shares			Dollars			Shares			Dollars

	1,046,544		$	22,704,312			3,738,408		$	84,121,277
	—			—			—			—
	—			—			1,081,869			19,830,612
	(2,636,990	)		(56,685,157	)		(13,508,107	)		(309,991,242	)
	(1,590,446	)		(33,980,845	)		(8,687,830	)		(206,039,353	)

	—			—			15,934			263,887
	—			—			46,289			701,743
	(200,108	)		(3,540,933	)		(603,136	)		(11,038,406	)
	(200,108	)		(3,540,933	)		(540,913	)		(10,072,776	)

	99,214			1,736,523			573,022			9,987,636
	—			—			—			—
	—			—			526,882			7,913,771
	(1,082,437	)		(18,995,606	)		(2,948,567	)		(53,094,928	)
	(983,223	)		(17,259,083	)		(1,848,663	)		(35,193,521	)

	1,651,909			36,867,439			5,086,300			119,526,286
	—			—			—			—
	—			—			317,134			5,866,970
	(840,832	)		(18,237,137	)		(1,836,070	)		(39,821,226	)
	811,077			18,630,302			3,567,364			85,572,030

	701,926			15,639,162			1,132,638			23,806,747
	—			—			61,683			1,141,754
	(151,632	)		(3,282,226	)		(66,476	)		(1,393,203	)
	550,294			12,356,936			1,127,845			23,555,298

	(1,412,406	)	$	(23,793,623	)		(6,382,197	)	$	(142,178,322	)

Financial Highlights

Touchstone Diversified Small Cap Growth Fund — Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	11.42		$	11.65		$	9.09		$	6.27		$	9.80		$	11.64
Income (loss) from investment operations:
Net investment income (loss)		(0.05	)		(0.11	)		(0.09	)		(0.08	)		(0.02	)		0.50
Net realized and unrealized gains (losses) on investments		0.03			(0.12	)		2.65			2.90			(3.51	)		(1.15	)
Total from investment operations		(0.02	)		(0.23	)		2.56			2.82			(3.53	)		(0.65	)
Distributions from:
Realized capital gains		—			—			—			—			—			(1.19	)
Net asset value at end of period	$	11.40		$	11.42		$	11.65		$	9.09		$	6.27		$	9.80
Total return^(A)		(0.18	%)^(B)		(1.97	%)		28.16	%		44.98	%		(36.02	%)		(7.28	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	7,033		$	7,711		$	15,686		$	12,708		$	9,054		$	22,955
Ratio to average net assets:
Net expenses		1.40	%^(C)		1.40	%		1.40	%		1.40	%		1.40	%		1.40	%
Gross expenses		2.11	%^(C)		2.19	%		2.06	%		2.24	%		2.25	%		2.03	%
Net investment income (loss)		(0.91	%)^(C)		(0.97	%)		(0.99	%)		(0.99	%)		(0.22	%)		0.33	%
Portfolio turnover rate		34	%^(B)		65	%		63	%		76	%		113	%		99	%

Touchstone Diversified Small Cap Growth Fund — Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,												Period Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008^(D)
Net asset value at beginning of period	$	11.04		$	11.35		$	8.91		$	6.20		$	9.75		$	12.44
Income (loss) from investment operations:
Net investment loss		(0.10	)		(0.20	)		(0.19	)		(0.15	)		(0.08	)		(0.22	)
Net realized and unrealized gains (losses) on investments		0.03			(0.11	)		2.63			2.86			(3.47	)		(1.28	)
Total from investment operations		(0.07	)		(0.31	)		2.44			2.71			(3.55	)		(1.50	)
Distributions from:
Realized capital gains		—			—			—			—			—			(1.19	)
Net asset value at end of period	$	10.97		$	11.04		$	11.35		$	8.91		$	6.20		$	9.75
Total return^(A)		(0.63	%)^(B)		(2.73	%)		27.38	%		43.71	%		(36.41	%)		(13.66	%)^(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	1,659		$	2,015		$	2,452		$	2,576		$	2,267		$	4,228
Ratio to average net assets:
Net expenses		2.15	%^(C)		2.15	%		2.15	%		2.15	%		2.15	%		0.84	%^(C)
Gross expenses		3.61	%^(C)		3.63	%		3.58	%		3.32	%		3.54	%		1.35	%^(C)
Net investment loss		(1.66	%)^(C)		(1.72	%)		(1.74	%)		(1.74	%)		(0.98	%)		(17.70	%)^(C)
Portfolio turnover rate		34	%^(B)		65	%		63	%		76	%		113	%		99	%^(B)

^(A)	Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
^(B)	Not annualized.
^(C)	Annualized.
^(D)	Represents the period from commencement of operations (August 1, 2007) through March 31, 2008.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Diversified Small Cap Growth Fund — Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	11.58		$	11.78		$	9.16		$	6.30		$	9.84		$	11.66
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.08	)		(0.08	)		(0.05	)		—	^(A)		0.04
Net realized and unrealized gains (losses) on investments		0.02			(0.12	)		2.70			2.91			(3.54	)		(0.67	)
Total from investment operations		(0.02	)		(0.20	)		2.62			2.86			(3.54	)		(0.63	)
Distributions from:
Realized capital gains		—			—			—			—			—			(1.19	)
Net asset value at end of period	$	11.56		$	11.58		$	11.78		$	9.16		$	6.30		$	9.84
Total return		(0.17	%)^(B)		(1.70	%)		28.60	%		45.40	%		(35.98	%)		(7.09	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	21,660		$	25,677		$	19,334		$	20,856		$	8,808		$	14,509
Ratio to average net assets:
Net expenses		1.15	%^(C)		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		1.52	%^(C)		1.59	%		1.58	%		1.66	%		1.67	%		1.81	%
Net investment income (loss)		(0.66	%)^(C)		(0.72	%)		(0.73	%)		(0.74	%)		0.02	%		(0.52	%)
Portfolio turnover rate		34	%^(B)		65	%		63	%		76	%		113	%		99	%

^(A)

Amount rounds to less than $0.005 per share.

^(B)

Not annualized.

^(C)

Annualized.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Growth Opportunities Fund — Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	25.64		$	25.27		$	20.88		$	14.41		$	21.68		$	20.75
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.16	)		0.07			(0.03	)		(0.15	)		(0.24	)
Net realized and unrealized gains (losses) on investments		0.35			0.53			4.44			6.50			(7.12	)		1.17
Total from investment operations		0.31			0.37			4.51			6.47			(7.27	)		0.93
Distributions from:
Net investment income		—			—			(0.12	)		—			—			—
Net asset value at end of period	$	25.95		$	25.64		$	25.27		$	20.88		$	14.41		$	21.68
Total return^(A)		1.21	%^(B)		1.47	%		21.71	%		44.90	%		(33.53	%)		4.48	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	71,654		$	62,274		$	96,930		$	32,182		$	17,973		$	26,349
Ratio to average net assets:
Net expenses		1.24	%^(C)		1.21	%		1.16	%		1.24	%		1.51	%		1.55	%
Gross expenses		1.39	%^(C)		1.43	%		1.50	%		1.85	%		2.04	%		1.91	%
Net investment income (loss)		(0.35	%)^(C)		(0.52	%)		0.10	%		(0.22	%)		(0.70	%)		(0.89	%)
Portfolio turnover rate		52	%^(B)(D)		204	%		130	%		100	%		60	%		82	%

Touchstone Growth Opportunities Fund — Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	23.68		$	23.50		$	19.49		$	13.55		$	20.42		$	19.63
Income (loss) from investment operations:
Net investment loss		(0.12	)		(0.29	)		(0.07	)		(0.17	)		(0.29	)		(0.35	)
Net realized and unrealized gains (losses) on investments		0.32			0.47			4.12			6.11			(6.58	)		1.14
Total from investment operations		0.20			0.18			4.05			5.94			(6.87	)		0.79
Distributions from:
Net investment income		—			—			(0.04	)		—			—			—
Net asset value at end of period	$	23.88		$	23.68		$	23.50		$	19.49		$	13.55		$	20.42
Total return^(A)		0.85	%^(B)		0.77	%		20.82	%		43.84	%		(33.64	%)		4.02	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	9,206		$	9,132		$	10,592		$	8,085		$	6,262		$	11,115
Ratio to average net assets:
Net expenses		1.99	%^(C)		1.96	%		1.93	%		1.99	%		2.27	%		2.30	%
Gross expenses		2.35	%^(C)		2.45	%		2.58	%		2.63	%		2.82	%		2.71	%
Net investment loss		(1.10	%)^(C)		(1.27	%)		(0.43	%)		(0.96	%)		(1.46	%)		(1.60	%)
Portfolio turnover rate		52	%^(B)(D)		204	%		130	%		100	%		60	%		82	%

^(A)	Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
^(B)	Not annualized.
^(C)	Annualized.
^(D)	Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Growth Opportunities Fund — Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,									Period Ended March 31,
	(Unaudited)			2012			2011			2010			2009^(A)
Net asset value at beginning of period	$	25.80		$	25.38		$	20.94		$	14.41		$	14.37
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.05	)		0.14			—	^(B)		—	^(B)
Net realized and unrealized gains on investments		0.36			0.47			4.45			6.53			0.04
Total from investment operations		0.35			0.42			4.59			6.53			0.04
Distributions from:
Net investment income		—			—			(0.15	)		—			—
Net asset value at end of period	$	26.15		$	25.80		$	25.38		$	20.94		$	14.41
Total return		1.36	%^(C)		1.66	%		22.06	%		45.32	%		0.28	%^(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	31,312		$	12,254		$	2,947		$	2,223		$	3
Ratio to average net assets:
Net expenses		0.99	%^(D)		0.96	%		0.93	%		0.98	%		0.97	%^(D)
Gross expenses		1.22	%^(D)		1.42	%		1.73	%		3.73	%		1.82	%^(D)
Net investment income (loss)		(0.10	%)^(D)		(0.27	%)		0.63	%		(0.04	%)		(0.21	%)^(D)
Portfolio turnover rate		52	%^(C)(E)		204	%		130	%		100	%		60	%^(C)

Touchstone Growth Opportunities Fund — Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,									Period Ended March 31,
	(Unaudited)			2012			2011			2010			2009^(A)
Net asset value at beginning of period	$	25.92		$	25.46		$	20.98		$	14.42		$	14.37
Income (loss) from investment operations:
Net Investment income (loss)		0.01			(0.03	)		0.16			0.01			—	^(B)
Net realized and unrealized gains on investments		0.36			0.49			4.48			6.55			0.05
Total from investment operations		0.37			0.46			4.64			6.56			0.05
Distributions from:
Net investment income		—			—			(0.16	)		—			—
Net asset value at end of period	$	26.29		$	25.92		$	25.46		$	20.98		$	14.42
Total return		1.43	%^(C)		1.81	%		22.25	%		45.49	%		0.35	%^(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	70,912		$	70,643		$	56,381		$	21,807		$	3
Ratio to average net assets:
Net expenses		0.84	%^(D)		0.81	%		0.75	%		0.84	%		0.82	%^(D)
Gross expenses		1.01	%^(D)		1.06	%		1.15	%		1.49	%		1.82	%^(D)
Net investment income (loss)		0.05	%^(D)		(0.12	%)		0.78	%		0.15	%		0.36	%^(D)
Portfolio turnover rate		52	%^(C)(E)		204	%		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.
^(E)	Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Large Cap Growth Fund — Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	27.74		$	24.95		$	20.74		$	14.73		$	24.45		$	22.06
Income (loss) from investment operations:
Net investment income (loss)		—	^(A)		0.02	^(B)		(0.09	)		(0.02	)		0.09			0.02
Net realized and unrealized gains (losses) on investments		(0.20	)		2.77			4.30			6.08			(9.80	)		2.37
Total from investment operations		(0.20	)		2.79			4.21			6.06			(9.71	)		2.39
Distributions from:
Net investment income		—			—			—			(0.04	)		(0.01	)		—
Realized capital gains		—			—			—			(0.01	)		—			—
Total distributions		—			—			—			(0.05	)		(0.01	)		—
Net asset value at end of period	$	27.54		$	27.74		$	24.95		$	20.74		$	14.73		$	24.45
Total return^(C)		(0.72	%)^(D)		11.18	%		20.30	%		41.15	%		(39.71	%)		10.83	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	302,993		$	238,488		$	291,827		$	334,465		$	418,808		$	719,488
Ratio to average net assets:
Net expenses		1.24	%^(E)		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Gross expenses		1.30	%^(E)		1.35	%		1.36	%		1.37	%		1.33	%		1.33	%
Net investment income (loss)		0.08	%^(E)		0.08	%		(0.36	%)		(0.29	%)		0.41	%		0.06	%
Portfolio turnover rate		69	%^(D)(F)		91	%		76	%		83	%		126	%		72	%

Touchstone Large Cap Growth Fund — Class B

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	26.47		$	23.85		$	19.93		$	14.22		$	23.68		$	21.46
Income (loss) from investment operations:
Net investment loss		(0.05	)		(0.03	)^(B)		(0.20	)		(0.44	)		(0.08	)		(0.15	)
Net realized gains (losses) on investments		(0.20	)		2.65			4.12			6.15			(9.38	)		2.37
Total from investment operations		(0.25	)		2.62			3.92			5.71			(9.46	)		2.22
Net asset value at end of period	$	26.22		$	26.47		$	23.85		$	19.93		$	14.22		$	23.68
Total return^(C)		(0.94	%)^(D)		10.99	%		19.67	%		40.15	%		(39.95	%)		10.34	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	8,688		$	10,949		$	13,467		$	14,897		$	14,186		$	29,829
Ratio to average net assets:
Net expenses		1.69	%^(E)		1.45	%		1.74	%		2.00	%		2.00	%		2.00	%
Gross expenses		1.69	%^(E)		1.45	%		1.83	%		2.29	%		2.20	%		2.18	%
Net investment loss		(0.37	%)^(E)		(0.12	%)		(0.85	%)		(1.05	%)		(0.35	%)		(0.65	%)
Portfolio turnover rate		69	%^(D)(F)		91	%		76	%		83	%		126	%		72	%

^(A)	Amount rounds to less than $0.005.
^(B)	The net investment income per share is based on average shares outstanding for the period or year.
^(C)	Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
^(D)	Not annualized.
^(E)	Annualized.
^(F)	Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Large Cap Growth Fund — Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	26.31		$	23.84		$	19.97		$	14.25		$	23.74		$	21.52
Income (loss) from investment operations:
Net investment loss		(0.09	)		(0.16	)^(A)		(0.27	)		(0.22	)		(0.07	)		(0.14	)
Net realized and unrealized gains (losses) on investments		(0.20	)		2.63			4.14			5.94			(9.42	)		2.36
Total from investment operations		(0.29	)		2.47			3.87			5.72			(9.49	)		2.22
Net asset value at end of period	$	26.02		$	26.31		$	23.84		$	19.97		$	14.25		$	23.74
Total return^(B)		(1.10	%)^(C)		10.36	%		19.38	%		40.14	%		(39.97	%)		10.32	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	115,741		$	116,350		$	127,172		$	142,179		$	137,641		$	236,582
Ratio to average net assets:
Net expenses		1.99	%^(D)		2.00	%		2.00	%		2.00	%		2.00	%		2.00	%
Gross expenses		2.07	%^(D)		2.09	%		2.13	%		2.16	%		2.11	%		2.09	%
Net investment loss		(0.67	%)^(D)		(0.67	%)		(1.11	%)		(1.05	%)		(0.33	%)		(0.66	%)
Portfolio turnover rate		69	%^(C)(E)		91	%		76	%		83	%		126	%		72	%

Touchstone Large Cap Growth Fund — Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	28.09		$	25.19		$	20.89		$	14.84		$	24.64		$	22.19
Income (loss) from investment operations:
Net investment income (loss)		0.04			0.09	^(A)		(0.02	)		(0.01	)		0.10			0.05
Net realized and unrealized gains (losses) on investments		(0.22	)		2.81			4.32			6.17			(9.85	)		2.40
Total from investment operations		(0.18	)		2.90			4.30			6.16			(9.75	)		2.45
Distributions from:
Net investment income		(0.04	)		—			—			(0.10	)		(0.05	)		—
Realized capital gains		—			—			—			(0.01	)		—			—
Total distributions		(0.04	)		—			—			(0.11	)		(0.05	)		—
Net asset value at end of period	$	27.87		$	28.09		$	25.19		$	20.89		$	14.84		$	24.64
Total return^(B)		(0.59	%)^(C)		11.47	%		20.58	%		41.53	%		(39.58	%)		11.04	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	547,866		$	385,411		$	331,733		$	352,847		$	206,369		$	31,679
Ratio to average net assets:
Net expenses		0.99	%^(D)		0.99	%		0.99	%		0.99	%		0.97	%		1.00	%
Gross expenses		1.10	%^(D)		1.14	%		1.13	%		1.06	%		1.06	%		1.04	%
Net investment income (loss)		0.33	%^(D)		0.34	%		(0.10	%)		(0.06	%)		0.95	%		0.21	%
Portfolio turnover rate		69	%^(C)(E)		91	%		76	%		83	%		126	%		72	%

^(A)	The net investment income per share is based on average shares outstanding for the period or year.
^(B)	Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
^(C)	Not annualized.
^(D)	Annualized.
^(E)	Portfolio turnover excludes the purchase and sales of the Acquired Fund (see Note 7). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Mid Cap Growth Fund — Class A

Selected Data for a Share Outstanding Throughout Each Period

		Six Months Ended September 30, 2012		Year Ended March 31,
		(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	22.41		$	24.91		$	20.18		$	12.95		$	21.16		$	24.17
Income (loss) from investment operations:
Net investment loss		(0.02	)		(0.16	)		(0.03	)		(0.03	)		(0.01	)		(0.12	)
Net realized and unrealized gains (losses) on investments		(0.04	)		(1.05	)		4.76			7.26			(7.96	)		0.01
Total from investment operations		(0.06	)		(1.21	)		4.73			7.23			(7.97	)		(0.11	)
Distributions from:
Realized capital gains		—			(1.29	)		—			—			(0.24	)		(2.90	)
Net asset value at end of period	$	22.35		$	22.41		$	24.91		$	20.18		$	12.95		$	21.16
Total return^(A)		(0.27	%)^(B)		(3.68	%)		23.44	%		55.83	%		(37.67	%)		(1.53	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	294,436		$	330,808		$	584,089		$	583,543		$	397,756		$	649,891
Ratio to average net assets:
Net expenses		1.42	%^(C)		1.40	%		1.47	%		1.50	%		1.50	%		1.47	%
Gross expenses		1.42	%^(C)		1.40	%		1.47	%		1.51	%		1.53	%		1.47	%
Net investment loss		(0.18	%)^(C)		(0.79	%)		(0.13	%)		(0.15	%)		(0.70	%)		(0.53	%)
Portfolio turnover rate		6	%^(B)		64	%		99	%		62	%		71	%		64	%

Touchstone Mid Cap Growth Fund — Class B

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	18.48		$	20.89		$	16.98		$	10.98		$	18.13		$	21.25
Income (loss) from investment operations:
Net investment loss		(0.07	)		(0.48	)		(0.10	)		(0.16	)		(0.15	)		(0.28	)
Net realized and unrealized gains (losses) on investments		(0.02	)		(0.64	)		4.01			6.16			(6.76	)		0.06
Total from investment operations		(0.09	)		(1.12	)		3.91			6.00			(6.91	)		(0.22	)
Distributions from:
Realized capital gains		—			(1.29	)		—			—			(0.24	)		(2.90	)
Net asset value at end of period	$	18.39		$	18.48		$	20.89		$	16.98		$	10.98		$	18.13
Total return^(A)		(0.49	%)^(B)		(3.99	%)		23.03	%		54.64	%		(38.12	%)		(2.29	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	6,949		$	10,681		$	23,376		$	32,762		$	29,521		$	61,977
Ratio to average net assets:
Net expenses		1.87	%^(C)		1.59	%		1.77	%		2.25	%		2.25	%		2.25	%
Gross expenses		1.87	%^(C)		1.59	%		1.82	%		2.38	%		2.34	%		2.27	%
Net investment loss		(0.63	%)^(C)		(0.97	%)		(0.43	%)		(0.90	%)		(0.85	%)		(1.31	%)
Portfolio turnover rate		6	%^(B)		64	%		99	%		62	%		71	%		64	%

^(A)	Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
^(B)	Not annualized.
^(C)	Annualized.

See accompanying Notes to Financial Statements.

Financial Highlights (Continued)

Touchstone Mid Cap Growth Fund — Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,
	(Unaudited)			2012			2011			2010			2009			2008
Net asset value at beginning of period	$	18.31		$	20.81		$	17.00		$	10.99		$	18.15		$	21.27
Income (loss) from investment operations:
Net investment loss		(0.09	)		(0.36	)		(0.17	)		(0.14	)		(0.14	)		(0.27	)
Net realized and unrealized gains (losses) on investments		(0.02	)		(0.85	)		3.98			6.15			(6.78	)		0.05
Total from investment operations		(0.11	)		(1.21	)		3.81			6.01			(6.92	)		(0.22	)
Distributions from:
Realized capital gains		—			(1.29	)		—			—			(0.24	)		(2.90	)
Net asset value at end of period	$	18.20		$	18.31		$	20.81		$	17.00		$	10.99		$	18.15
Total return^(A)		(0.60	%)^(B)		(4.43	%)		22.41	%		54.69	%		(38.14	%)		(2.28	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	143,775		$	162,693		$	223,376		$	218,413		$	158,782		$	302,422
Ratio to average net assets:
Net expenses		2.18	%^(C)		2.17	%		2.24	%		2.25	%		2.25	%		2.24	%
Gross expenses		2.19	%^(C)		2.17	%		2.27	%		2.31	%		2.31	%		2.24	%
Net investment loss		(0.94	%)^(C)		(1.56	%)		(0.90	%)		(0.90	%)		(0.84	%)		(1.30	%)
Portfolio turnover rate		6	%^(B)		64	%		99	%		62	%		71	%		64	%

Touchstone Mid Cap Growth Fund — Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months Ended September 30, 2012			Year Ended March 31,									Period Ended March 31,
	(Unaudited)			2012			2011			2010			2009^(D)
Net asset value at beginning of period	$	22.63		$	25.07		$	20.27		$	12.96		$	13.20
Income (loss) from investment operations:
Net investment income (loss)		0.02			(0.10	)		0.01			0.01			0.02
Net realized and unrealized gains (losses) on investments		(0.04	)		(1.05	)		4.79			7.30			(0.26	)
Total from investment operations		(0.02	)		(1.15	)		4.80			7.31			(0.24	)
Distributions from:
Realized capital gains		—			(1.29	)		—			—			—
Net asset value at end of period	$	22.61		$	22.63		$	25.07		$	20.27		$	12.96
Total return^(A)		(0.09	%)^(B)		(3.42	%)		23.68	%		56.40	%		(1.82	%)^(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	141,837		$	123,593		$	47,470		$	26,162		$	3
Ratio to average net assets:
Net expenses		1.09	%^(C)		1.11	%		1.24	%		1.25	%		1.25	%^(C)
Gross expenses		1.09	%^(C)		1.11	%		1.24	%		1.26	%		1.63	%^(C)
Net investment income (loss)		0.15	%^(C)		(0.49	%)		0.05	%		0.14	%		1.11	%^(C)
Portfolio turnover rate		6	%^(B)		64	%		99	%		62	%		71	%^(B)

^(A)	Total returns shown exclude the effect of applicable sales loads. If these charges were included, the returns would be lower.
^(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.

Financial Highlights (Continued)

Touchstone Mid Cap Growth Fund — Class Institutional

Selected Data for a Share Outstanding Throughout Each Period

		Six Months
		Ended			Period
		September			Ended
		30, 2012			March 31,
		(Unaudited)			2012^(A)
Net asset value at beginning of period	$	22.65		$	25.30
Income (loss) from investment operations:
Net investment income (loss)		0.02			(0.03	)
Net realized and unrealized gains (losses) on investments		(0.03	)		(1.33	)
Total from investment operations		(0.01	)		(1.36	)
Distributions from:
Realized capital gains		—			(1.29	)
Net asset value at end of period	$	22.64		$	22.65
Total return		(0.04	%)^(B)		(4.22	%)^(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	37,998		$	25,550
Ratio to average net assets:
Net expenses		1.02	%^(C)		1.03	%^(C)
Gross expenses		1.02	%^(C)		1.17	%^(C)
Net investment income (loss)		0.22	%^(C)		(0.41	%)
Portfolio turnover rate		6	%^(B)		64	%^(B)

^(A)	Represents the period from commencement of operations (April 1, 2011) through March 31, 2012.
^(B)	Not annualized.
^(C)	Annualized.

See accompanying Notes to Financial Statements.

Notes to Financial Statements

September 30, 2012 (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 twenty two funds including 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. Transfers in and out of the levels are recognized at the value at the end of the period. During the period ended September 30, 2012, there were no transfers between Levels 1, 2 and 3.

The aggregate value by input level, as of September 30, 2012, 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 September 30, 2012.

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

Notes to Financial Statements (Continued)

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. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment. 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 translated into 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 December 2011, the FASB issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under IFRS. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU 2011-11 on the financial statements and disclosures.

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;

Notes to Financial Statements (Continued)

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.

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 loaned securities are secured by collateral valued at least equal, at all times, to the fair value of the securities loaned plus accrued interest. When the collateral falls below specified amounts, the lending agent will use its best effort to obtain additional collateral on the next business day to meet required amounts under the security lending agreement. The cash collateral is reinvested by the Funds’ custodian into an approved investment vehicle.

As of September 30, 2012, the following Funds loaned securities and received collateral as follows:

		Fair Value of		Value of
		Securities		Collateral
Fund		Loaned		Received
Diversified Small Cap Growth Fund	$	2,615,068	$	2,684,106
Growth Opportunities Fund		1,252,979		1,281,105

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.

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). There is no sales load

Notes to Financial Statements (Continued)

on purchases of $1 million or more of Class A Shares. 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 generally equal to the net asset value per share. However, Class A redemptions that were part of a no load $1 million subscription may be subject to a contingent deferred sales charge (“CDSC”) of up to 1%. 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 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 net asset value (“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 period ended September 30, 2012:

Diversified

Small Cap

Growth Fund

Growth

Opportunities

Fund

Large Cap

Growth

Fund

Mid Cap

Growth

Fund

Purchases of investment securities *

10,437,926

76,631,169

532,613,776

221,557,303

Proceeds from sales and maturities

14,889,966

119,178,634

570,256,546

249,234,529

*	The cost of purchases excludes $55,514,925 and $173,260,180 on Growth Opportunities Fund and Large Cap Growth Fund, respectively, from securities received from the acquired funds. See Note 7 in the Notes to Financial Statements.

Notes to Financial Statements (Continued)

4. Transactions with Affiliates and Other Related Parties

Certain officers of theTrust are also officers of the Advisor (Touchstone Advisors, Inc.), the Underwriter (Touchstone Securities, Inc.) and/or BNY Mellon Investment Servicing (U.S) Inc. (“BNY Mellon”) 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”).

MANAGEMENT & EXPENSE LIMITATION 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% on the first $500 million
	0.70% of the next $500 million
	0.65% of such assets in excess of $1 billion
Large Cap Growth Fund	0.75% on the first $200 million
	0.70% of the next $800 million
	0.65% of such assets in excess of $1 billion
Mid Cap Growth Fund	0.75% on the first $500 million
	0.70% of the next $500 million
	0.65% 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*	1.20	%	—		1.95	%	0.95	%	0.84	%
Large Cap Growth Fund**	1.20	%	1.95	%	1.95	%	0.95	%	—
Mid Cap Growth Fund	1.43	%	2.18	%	2.18	%	1.18	%	1.03	%

*	Prior to September 10, 2012, the expense limitations for Class A, Class C, Class Y, and Institutional Class shares of Growth Opportunities Fund were 1.24%, 1.99%, 0.99%, and 0.84%, respectively.

**	Prior to September 10, 2012, the expense limitations for Class A, Class B, Class C and Class Y were 1.25%, 2.00%, 2.00% and 0.99%, respectively.

Notes to Financial Statements (Continued)

These expense limitations will remain in effect until at least July 29, 2013 for Diversified Small Cap Growth fund and Mid Cap Growth fund and until at least September 10, 2013 for Growth Opportunities and Large Cap Growth fund.

During the period ended September 30, 2012, 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	$	2,636	$	29,669	$	47,696
Growth Opportunities Fund		—		102,996		31,492
Large Cap Growth Fund		—		—		351,588
Mid Cap Growth Fund		—		—		10,061

Effective July 20, 2012, under the terms of the Expense Limitation Agreement the Advisor is entitled to recover, subject to approval by the Fund’s Board of Trustees, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation and/or assumed expenses for the Fund. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount.

At September 30, 2012, the Advisor may seek recoupment of previously waived and reimbursed fees as follows:

Fund		Expiration July 31, 2015
Diversified Small Cap Growth Fund	$	19,261
Growth Opportunities Fund		40,266
Large Cap Growth Fund		75,875
Mid Cap Growth Fund		—

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; supervising the preparation of tax returns; coordinating the preparation of reports to shareholders and reports to, and filings with, the Securities and Exchange Commission and state securities authorities, as well as 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.

Effective November 12, 2011, the Advisor has engaged BNY Mellon as the Sub-Administrator to the Trust. BNY Mellon provides administrator and accounting services to the Trust and is compensated directly by the Advisor, not the Trust. Prior to November 12, 2011, JPMorgan Chase Bank, N.A.(“JPMorgan”) served as the Sub-Administrator and was compensated directly by the Advisor, not the Trust.

TRANSFER AGENT AGREEMENT

Effective December 5, 2011, under the terms of the Transfer Agent Agreement between the Trust and BNY Mellon, BNY Mellon maintains the records of each shareholder’s account, answers shareholders’ inquiries concerning their accounts, processes purchases and redemptions of each Fund’s shares, acts as dividend and distribution

Notes to Financial Statements (Continued)

disbursing agent and performs other shareholder service functions. For these services, BNY Mellon receives a monthly fee per shareholder account from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.

Prior to December 5, 2011, under the terms of the Transfer Agent Agreement between the Trust and JPMorgan, JPMorgan maintained the records of each shareholder’s account, answered shareholders’ inquiries concerning their accounts, processed purchases and redemptions of each Fund’s shares, acted as dividend and distribution disbursing agent and performed other shareholder service functions. For these services, JPMorgan received a monthly fee per shareholder account from each Fund. In addition, each Fund paid out-of-pocket expenses incurred by JPMorgan, including, but not limited to, postage and supplies.

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.

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 period ended September 30, 2012:

		Amount
Diversified Small Cap Growth Fund	$	732
Growth Opportunities Fund		2,133
Large Cap Growth Fund		57,333
Mid Cap Growth Fund		27,591

In addition, the Underwriter collected contingent deferred sales charges on the redemption of Class A, Class B and Class C shares of the following Funds during the period ended September 30, 2012:

		Class		Class		Class
		A		B		C
Diversified Small Cap Growth Fund	$	—	$	—	$	61
Growth Opportunities Fund		—		—		480
Large Cap Growth Fund		—		5,459		5,309
Mid Cap Growth Fund		31		7,635		5,408

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.

Notes to Financial Statements (Continued)

A summary of each Fund’s investment, as applicable, in the Touchstone Institutional Money Market Fund for the period ended September 30, 2012, is as follows:

	Share Activity
	Balance 03/31/12		Purchases		Sales			Balance 09/30/12		Dividends		Value 09/30/12
Diversified Small Cap Growth Fund		1,196,631		5,300,199		(5,815,980	)		680,850	$	999	$	680,850
Growth Opportunities Fund		—		60,389,296		(54,672,890	)		5,716,406	$	2,105	$	5,716,406
Large Cap Growth Fund		7,532,678		183,867,021		(173,742,010	)		17,657,689	$	14,216	$	17,657,689
Mid Cap Growth Fund		3,494,953		161,235,537		(144,211,079	)		20,519,411	$	13,520	$	20,519,411

5. Federal Tax Information

Federal income tax — It is each Fund’s policy to continue to comply with the special provisions of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Fund so qualifies and distributes at least 90% of its investment company taxable income, the Fund (but not the shareholders) will be relieved of federal income tax on the income distributed. 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, 2012 and 2011 was as follows:

Diversified Small Cap

Growth Fund

Growth

Opportunities Fund

Year

Ended

March 31,

2012

Year

Ended

March 31,

2011

Year

Ended

March 31,

2012

Year

Ended

March 31,

2011

From ordinary income

—

545,653

Large Cap

Growth Fund

Mid Cap

Growth Fund

Year

Ended

March 31,

2012

Year

Ended

March 31,

2011

Year

Ended

March 31,

2012

Year

Ended

March 31,

2011

From long-term capital gains

—

42,015,658

—

Notes to Financial Statements (Continued)

The following information is computed on a tax basis for each item as of March 31, 2012:

		Diversified			Growth			Large Cap			Mid Cap
		Small Cap			Opportunities			Growth			Growth
		Growth Fund			Fund			Fund			Fund
Tax cost of portfolio investments	$	32,923,405		$	151,033,572		$	583,214,521		$	570,019,947
Gross unrealized appreciation		6,207,252			5,772,771			186,957,367			99,866,053
Gross unrealized depreciation		(1,504,449	)		(2,882,617	)		(5,075,754	)		(20,220,193	)
Net unrealized appreciation		4,702,803			2,890,154			181,881,613			79,645,860
Accumulated capital and other losses		(14,161,623	)		(16,634,494	)		(107,859,196	)		—
Undistributed ordinary income		—			—			639,110			—
Post - October and Qualified Late-Year losses		(53,200	)		—			(11,370,792	)		—
Undistributed capital gains		—			—			—			13,992,749
Accumulated earnings	$	(9,512,020	)	$	(13,744,340	)	$	63,290,735		$	93,638,609

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals.

As of March 31, 2012, the Funds had the following capital loss carryforwards for federal income tax purposes:

		2013		2014		2016			2017			2018			Total
Diversified Small Cap Growth Fund	$	—	$	4,602,156	$	3,627,106		$	5,932,361		$	—		$	14,161,623
Growth Opportunities Fund		1,976,702		—		1,053,666	*		12,174,612	*		1,429,514	*		16,634,494
Large Cap Growth Fund		—		—		3,059,206	*		3,580,263	*		101,219,727			107,859,196

* 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.

As of September 30, 2012, 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	$	29,236,755	$	5,200,409	$	(1,384,236	)	$	3,816,173
Growth Opportunities Fund		174,603,437		13,180,225		(3,548,146	)		9,632,079
Large Cap Growth Fund		813,550,120		170,434,268		(6,546,906	)		163,887,362
Mid Cap Growth Fund		568,183,535		76,262,976		(15,776,955	)		60,486,021

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 September 30, 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 must be utilized before pre-enactment capital loss carryovers. Under the Act, new capital losses may now be carried forward indefinitely, and retain the character of the original loss as compared with pre-enactment law, where capital losses could be carried forward for eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.

Notes to Financial Statements (Continued)

6. 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.

7. Fund Mergers

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		7,230,578			184,155,041			191,385,619
Accumulated Net Realized Gain (Loss)		(7,746,291	)		(193,595,589	)		(193,595,589	)

Notes to Financial Statements (Continued)

At a meeting held on March 13, 2012, the Board of Trustees of the Trust approved an Agreement and Plans of Reorganization (the “Plans”) providing for the transfer of all assets and liabilities of the Fifth Third Mid Cap Growth Fund and the Fifth Third Quality Growth Fund (each an “Acquired Fund”), each a series of Fifth Third Funds (“Fifth Third”), to the Touchstone Growth Opportunities Fund and the Touchstone Large Cap Growth Fund(each an “Acquiring Fund”), respectively. The mergers took place on September 10, 2012.

The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation immediately before and after the reorganization:

		Before Reorganization					After Reorganization
		Fifth Third Mid Cap Growth Fund			Touchstone Growth Opportunities Fund		Touchstone Growth Opportunities Fund
Class A *
Shares		572,780	^(A)		2,248,976		2,821,757
Net Assets	$	14,817,828		$	58,180,948	$	72,998,776
Net Asset Value	$	25.87	^(A)	$	25.87	$	25.87
Class C
Shares		20,324	^(B)		366,835		387,159
Net Assets	$	483,997		$	8,736,093	$	9,220,090
Net Asset Value	$	23.81	^(B)	$	23.81	$	23.81
Class Y *
Shares		1,938,310	^(C)		515,855		2,454,164
Net Assets	$	50,516,751		$	13,444,300	$	63,691,051
Net Asset Value	$	26.06	^(C)	$	26.06	$	26.06
Institutional Class
Shares		—		$	2,695,048	$	2,695,048
Net Assets	$	—		$	70,607,136	$	70,607,136
Net Asset Value	$	—		$	26.20	$	26.20
Total Fund
Shares Outstanding		4,987,746			5,826,714		8,358,128
Net Assets	$	65,818,576		$	150,968,477	$	216,787,053
Unrealized Appreciation (Depreciation)	$	10,318,849		$	9,176,645	$	19,495,494

^(A)	Reflects a 0.4885:1 stock split on Class A Shares and a 0.4272:1 stock split on Class B Shares which occurred on the date of reorganization, September 07, 2012.
^(B)	Reflects a 0.4334:1 stock split occurred on the date of reorganization, September 07, 2012.
^(C)	Reflects a 0.5149:1 stock split which occurred on the date of reorganization, September 07, 2012.

		Before Reorganization					After Reorganization
		Fifth Third Quality Growth Fund			Touchstone Large Cap Growth Fund		Touchstone Large Cap Growth Fund
Class A *
Shares		2,188,990	^(A)		8,811,417		11,000,407
Net Assets	$	60,528,345		$	243,647,557	$	304,175,902
Net Asset Value	$	27.65	^(A)	$	27.65	$	27.65
Class B
Shares		—			336,597		336,597
Net Assets	$	—		$	8,863,111	$	8,863,111
Net Asset Value	$	—		$	26.33	$	26.33

Notes to Financial Statements (Continued)

		Before Reorganization					After Reorganization
		Fifth Third Quality Growth Fund			Touchstone Large Cap Growth Fund		Touchstone Large Cap Growth Fund
Class C
Shares		39,069	^(B)		4,454,876		4,493,945
Net Assets	$	1,021,152		$	116,437,117	$	117,458,269
Net Asset Value	$	26.14	^(B)	$	26.14	$	26.14
Class Y *
Shares		6,984,781	^(C)		14,937,356		21,922,137
Net Assets	$	195,449,178		$	417,980,580	$	613,429,758
Net Asset Value	$	27.98	^(C)	$	27.98	$	27.98
Total Fund
Shares Outstanding		14,565,867			28,540,246		37,753,086
Net Assets	$	256,998,675		$	786,928,365	$	1,043,927,040
Unrealized Appreciation (Depreciation)	$	83,525,044		$	164,097,186	$	247,622,230

^(A)	Reflects a 0.6217:1 stock split on Class A Shares and a 0.5655 stock split on Class B Shares which occurred on the date of reorganization, September 07, 2012.

^(B)	Reflects a 0.5782:1 stock split occurred on the date of reorganization, September 07, 2012.
^(C)	Reflects a 0.6364:1 stock split which occurred on the date of reorganization, September 07, 2012.

*	The Acquired Funds had Class B shares and Institutional Class shares outstanding immediately prior to the reorganization, which were exchanged for Class A shares and Class Y shares, respectively, of the Acquiring Funds.

Assuming the reorganization had been completed on April 1, 2012, the results of operations for the Growth Opportunities Fund and the Large Cap Growth Fund for the six months ended September 30, 2012 would have been as follows:

		Touchstone Growth Opportunities Fund			Touchstone Large Cap Growth Fund
Net investment income (loss)	$	(308,748	)	$	734,519
Net realized and unrealized gain (loss) on investments	$	15,219,727		$	73,269,865
Net increase in asset from operations	$	14,910,979		$	74,004,384

Because the combined investment portfolios have been managed as single portfolios since the Reorganizations were completed, it is not practical to separate the amounts of revenue and earnings to the Acquiring Funds that have been included in their statements of operations since the mergers.

8. Subsequent Events

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued, and has determined that there were no subsequent events.

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, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period April 1, 2012 through September 30, 2012.

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, 2012” to estimate the expenses you paid on your account during this period.

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (Continued)

Hypothetical Example for Comparison Purposes

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

		Net Expense Ratio Annualized September 30, 2012			Beginning Account Value April 1, 2012		Ending Account Value September 30, 2012		Expenses Paid During the Six Months Ended September 30, 2012
Touchstone Diversified Small Cap Growth Fund
Class A	Actual		1.40	%	$	1,000.00	$	998.20	$	7.01
Class A	Hypothetical		1.40	%	$	1,000.00	$	1,018.05	$	7.08

Class C	Actual		2.15	%	$	1,000.00	$	993.70	$	10.75
Class C	Hypothetical		2.15	%	$	1,000.00	$	1,014.29	$	10.86

Class Y	Actual		1.15	%	$	1,000.00	$	998.30	$	5.76
Class Y	Hypothetical		1.15	%	$	1,000.00	$	1,019.30	$	5.82

Touchstone Growth Opportunities Fund
Class A	Actual		1.24	%	$	1,000.00	$	1,012.10	$	6.25
Class A	Hypothetical		1.24	%	$	1,000.00	$	1,018.85	$	6.28

Class C	Actual		1.99	%	$	1,000.00	$	1,008.50	$	10.02
Class C	Hypothetical		1.99	%	$	1,000.00	$	1,015.09	$	10.05

Class Y	Actual		0.99	%	$	1,000.00	$	1,013.60	$	5.00
Class Y	Hypothetical		0.99	%	$	1,000.00	$	1,020.10	$	5.01

Institutional Class	Actual		0.84	%	$	1,000.00	$	1,014.30	$	4.24
Institutional Class	Hypothetical		0.84	%	$	1,000.00	$	1,020.86	$	4.26

Touchstone Large Cap Growth Fund
Class A	Actual		1.24	%	$	1,000.00	$	992.80	$	6.19
Class A	Hypothetical		1.24	%	$	1,000.00	$	1,018.85	$	6.28

Class B	Actual		1.69	%	$	1,000.00	$	990.60	$	8.43
Class B	Hypothetical		1.69	%	$	1,000.00	$	1,016.60	$	8.54

Class C	Actual		1.99	%	$	1,000.00	$	989.00	$	9.92
Class C	Hypothetical		1.99	%	$	1,000.00	$	1,015.09	$	10.05

Class Y	Actual		0.99	%	$	1,000.00	$	994.10	$	4.95
Class Y	Hypothetical		0.99	%	$	1,000.00	$	1,020.10	$	5.01

Other Items (Unaudited) (Continued)

		Net Expense Ratio Annualized September 30, 2012			Beginning Account Value April 1, 2012		Ending Account Value September 30, 2012		Expenses Paid During the Six Months Ended September 30, 2012*
Touchstone Mid Cap Growth Fund
Class A	Actual		1.42	%	$	1,000.00	$	997.30	$	7.11
Class A	Hypothetical		1.42	%	$	1,000.00	$	1,017.95	$	7.18

Class B	Actual		1.87	%	$	1,000.00	$	995.10	$	9.35
Class B	Hypothetical		1.87	%	$	1,000.00	$	1,015.69	$	9.45

Class C	Actual		2.18	%	$	1,000.00	$	994.00	$	10.90
Class C	Hypothetical		2.18	%	$	1,000.00	$	1,014.14	$	11.01

Class Y	Actual		1.09	%	$	1,000.00	$	999.10	$	5.46
Class Y	Hypothetical		1.09	%	$	1,000.00	$	1,019.60	$	5.52

Institutional Class	Actual		1.02	%	$	1,000.00	$	999.60	$	5.11
Institutional Class	Hypothetical		1.02	%	$	1,000.00	$	1,019.95	$	5.16

Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by [183/365] (to reflect one-half year period).

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 Annual Report.

This page intentionally left blank.

303 Broadway, Suite 1100

Cincinnati, OH 45202-4203

Go paperless, sign up today at:

www.touchstoneinvestments.com/home

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

BNY Mellon Investment Servicing (US) Inc.

4400 Computer Drive

Westborough, MA 01581

Shareholder Service

800.543.0407

* A Member of Western & Southern Financial Group

Item 2. Code of Ethics.

Not applicable.

Item 3. Audit Committee Financial Expert.

Not applicable.

Item 4. Principal Accountant Fees and Services.

Not applicable.

Item 5. Audit Committee of Listed registrants.

Not applicable.

Item 6. Investments.

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form

(b)

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

Item 11. Controls and Procedures.

(a)

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

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)

Not applicable.

(a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3)

Not applicable.

(b)

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

SIGNATURES

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

(Registrant)

Touchstone Strategic Trust

By (Signature and Title)*	/s/ Jill T. McGruder
	Jill T. McGruder, President
	(principal executive officer)

Date

11/21/12

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

By (Signature and Title)*	/s/ Jill T. McGruder
	Jill T. McGruder, President
	(principal executive officer)

Date

11/21/12

By (Signature and Title)*	/s/ Terrie A. Wiedenheft
	Terrie A. Wiedenheft, Controller and Treasurer
	(principal financial officer)

Date

11/21/12

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