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, 2016

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

September 30, 2016

(Unaudited)

Semi-Annual Report

Touchstone Strategic Trust

Touchstone Flexible Income Fund

Touchstone Focused Fund

Touchstone Growth Opportunities Fund

Touchstone International Growth Fund

Touchstone International Value Fund

Touchstone Mid Cap Growth Fund

Touchstone Sands Capital Emerging Markets Growth Fund

Touchstone Small Cap Growth Fund

Touchstone Sustainability and Impact Equity Fund

Table of Contents

	Page
Tabular Presentation of Portfolios of Investments	3 - 5
Portfolios of Investments:
Touchstone Flexible Income Fund	6
Touchstone Focused Fund	13
Touchstone Growth Opportunities Fund	15
Touchstone International Growth Fund	17
Touchstone International Value Fund	20
Touchstone Mid Cap Growth Fund	23
Touchstone Sands Capital Emerging Markets Growth Fund	25
Touchstone Small Cap Growth Fund	28
Touchstone Sustainability and Impact Equity Fund	30
Statements of Assets and Liabilities	32 - 35
Statements of Operations	36 - 37
Statements of Changes in Net Assets	38 - 41
Statements of Changes in Net Assets - Capital Stock Activity	42 - 46
Financial Highlights	47 - 68
Notes to Financial Statements	69 - 87
Other Items	88
Privacy Protection Policy	99

This report identifies the Funds' investments on September 30, 2016. These holdings are subject to change. Not all investments in each Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not occur.

 2

Tabular Presentation of Portfolios of Investments (Unaudited)

September 30, 2016

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

Touchstone Flexible Income Fund
Credit Quality*	(% of Fixed Income Securities)
AAA/Aaa		57.4	%
AA/Aa		8.4
A/A		11.8
BBB/Baa		16.4
BB/Ba		4.6
B/B		0.3
Not Rated		1.1
		100.0	%

Credit Quality*	(% of Preferred Stocks)
A/A		11.8	%
BBB/Baa		48.3
BB/Ba		31.4
B/B		5.1
Not Rated		3.4
		100.0	%

Sector Allocation**	(% of Net Assets)
Fixed Income Securities		84.8	%
Preferred Stocks		5.5
Investment Funds		5.2
Common Stocks
Real Estate		2.7
Health Care		0.6
Consumer Discretionary		0.5
Information Technology		0.4
Industrials		0.2
Exchange Traded Funds		2.0
Other Assets/Liabilities (Net)		(1.9	)
Total		100.0	%

Touchstone Focused Fund
Sector Allocation**	(% of Net Assets)
Information Technology		20.2	%
Health Care		15.0
Consumer Discretionary		13.2
Financials		12.6
Industrials		11.7
Consumer Staples		8.6
Energy		6.6
Real Estate		2.7
Telecommunication Services		2.4
Materials		1.9
Investment Fund		5.0
Other Assets/Liabilities (Net)		0.1
Total		100.0	%

Touchstone Growth Opportunities Fund
Sector Allocation**	(% of Net Assets)
Information Technology		32.7	%
Health Care		19.9
Consumer Discretionary		18.9
Industrials		13.0
Materials		4.2
Consumer Staples		4.0
Financials		3.9
Energy		1.5
Real Estate		0.8
Investment Funds		2.1
Other Assets/Liabilities (Net)		(1.0	)
Total		100.0	%

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

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

 3

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

Touchstone International Growth Fund
Geographic Allocation	(% of Net Assets)
Common Stocks
Japan		12.8	%
Canada		11.7
Germany		10.1
United Kingdom		9.7
China		7.2
Switzerland		7.0
Netherlands		6.9
France		6.8
Singapore		6.0
Sweden		3.4
United States		3.2
Belgium		2.7
India		2.2
Taiwan		1.7
Denmark		1.6
Israel		1.4
Spain		1.2
Norway		0.3
Investment Funds		7.7
Other Assets/Liabilities (Net)		(3.6	)
Total		100.0	%

Touchstone International Value Fund
Geographic Allocation	(% of Net Assets)
Common Stocks
United Kingdom		17.7	%
Japan		15.1
Netherlands		13.5
Switzerland		8.8
France		8.8
Germany		5.3
Singapore		4.4
Ireland		3.7
South Korea		3.5
Denmark		3.1
Austria		2.5
Spain		2.4
Israel		2.3
Italy		2.1
Thailand		1.8
Hong Kong		1.2
Brazil		1.2
United States		0.7
Czech Republic		0.1
Colombia		0.0
Investment Funds		0.8
Other Assets/Liabilities (Net)		1.0
Total		100.0	%

 4

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

Touchstone Mid Cap Growth Fund
Sector Allocation*	(% of Net Assets)
Consumer Discretionary		21.2	%
Industrials		19.9
Information Technology		18.0
Health Care		17.8
Financials		7.2
Consumer Staples		5.7
Materials		4.4
Real Estate		1.8
Energy		1.5
Investment Funds		3.3
Other Assets/Liabilities (Net)		(0.8	)
Total		100.0	%

Touchstone Sands Capital Emerging Markets
Growth Fund
Geographic Allocation	(% of Net Assets)
Common Stocks
India		27.9	%
Cayman Islands		19.7
Brazil		5.0
South Korea		5.0
China		5.0
South Africa		4.9
Indonesia		4.8
United States		3.9
Philippines		3.8
Thailand		3.5
United Kingdom		2.7
Peru		2.4
Taiwan		1.9
Russia		1.7
Turkey		1.4
Malaysia		1.4
Virgin Islands (British)		1.3
Low Exercise Price
Warrants
Saudi Arabia		1.9
Investment Fund		1.6
Other Assets/Liabilities (Net)		0.2
Total		100.0	%

Touchstone Small Cap Growth Fund
Sector Allocation*	(% of Net Assets)
Information Technology		24.2	%
Health Care		22.0
Consumer Discretionary		18.1
Industrials		12.8
Financials		7.4
Consumer Staples		5.3
Energy		3.9
Materials		1.2
Real Estate		0.7
Investment Funds		12.7
Other Assets/Liabilities (Net)		(8.3	)
Total		100.0	%

Touchstone Sustainability and Impact Equity
Fund
Geographic Allocation	(% of Net Assets)
Common Stocks
United States		51.0	%
Japan		12.9
United Kingdom		11.4
Ireland		3.5
Netherlands		3.3
Germany		3.3
China		2.9
Sweden		2.7
Switzerland		2.4
France		2.1
Italy		0.9
Indonesia		0.7
South Korea		0.4
Investment Fund		3.4
Other Assets/Liabilities (Net)		(0.9	)
Total		100.0	%

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

 5

Portfolio of Investments

Touchstone Flexible Income Fund – September 30, 2016 (Unaudited)

Principal			Market
Amount			Value
		Corporate Bonds — 46.1%
		Financials — 24.2%
$	1,425,000	Aflac, Inc., 3.250%, 3/17/25	$	1,490,294
	2,000,000	Allstate Corp. (The), 5.750%, 8/15/53(A)		2,147,500
	375,000	American Financial Group, Inc.,
		9.875%, 6/15/19		451,466
	10,600,000	Australia & New Zealand Banking
		Group Ltd/United Kingdom
		(Australia), 144a,
		6.750%, 12/29/49(A)(B)		11,648,711
	3,480,000	Bank of New York Mellon Corp. (The),
		Ser E, 4.950%, 12/29/49(A)(B)		3,549,920
	5,265,000	Berkshire Hathaway, Inc.,
		3.125%, 3/15/26		5,533,831
	2,653,000	Capital One Financial Corp., Ser E,
		5.550%, 12/29/49(A)(B)		2,699,428
	2,350,000	Charles Schwab Corp. (The),
		7.000%, 8/29/49(A)(B)		2,726,000
	9,249,000	Citigroup, Inc., Ser Q,
		5.950%, 12/29/49(A)(B)		9,417,054
	4,000,000	Citigroup, Inc., Ser R,
		6.125%, 12/29/49(A)(B)		4,160,000
	4,750,000	Citizens Financial Group, Inc.,
		5.500%, 12/29/49(A)(B)		4,655,000
	6,000,000	Credit Agricole SA (France), 144a,
		8.125%, 12/29/49(A)(B)		6,360,000
	3,000,000	Dai-ichi Life Insurance Co. Ltd (The)
		(Japan), 144a, 4.000%, 12/29/49(A)(B)		3,015,000
	953,275	Doric Nimrod Air Finance Alpha Ltd.
		2012-1 Class B Pass Through Trust
		(Guernsey), 144a, 6.500%, 5/30/21		994,410
	4,285,000	Ford Motor Credit Co. LLC MTN,
		4.389%, 1/8/26		4,571,439
	11,850,000	Goldman Sachs Group, Inc. (The), Ser
		L, 5.700%, 12/29/49(A)(B)		12,012,938
	4,700,000	HSBC Holdings PLC (United Kingdom),
		6.375%, 12/29/49(A)(B)†		4,690,647
	10,000,000	ING Groep NV (Netherlands),
		6.000%, 12/29/49(A)(B)†		9,718,750
	12,666,000	JPMorgan Chase & Co., Ser Z, 144a,
		5.300%, 12/29/49(A)(B)		12,840,158
	12,050,000	Lloyds Banking Group PLC (United
		Kingdom), 7.500%, 4/30/49(A)(B)		12,444,035
	5,830,000	MetLife, Inc., Ser C, 5.250%,
		12/29/49(A)(B)		5,859,150
	500,000	Nippon Life Insurance Co. (Japan),
		144a, 4.700%, 1/20/46(A)		541,875
	1,800,000	Northern Trust Corp.,
		4.600%, 12/29/49(A)(B)		1,829,250
	2,350,000	Prudential Financial, Inc.,
		5.875%, 9/15/42(A)		2,592,638
	1,100,000	QBE Insurance Group Ltd., MTN
		(Australia), 5.875%, 6/17/46(A)		1,161,118
	13,750,000	Royal Bank of Scotland Group PLC
		(United Kingdom),
		7.500%, 12/29/49(A)(B)		12,615,625
	8,000,000	Societe Generale SA (France), 144a,
		7.375%, 12/29/49(A)(B)		7,840,000
	5,000,000	UBS Group AG (China),
		7.125%, 12/29/49(A)(B)		5,063,500
	8,500,000	US Bancorp, Ser I,
		5.125%, 12/29/49(A)(B)		8,952,625
	11,715,000	Wells Fargo & Co., Ser K,
		7.980%, 3/29/49(A)(B)		12,243,346
				173,825,708
		Industrials — 8.2%
	4,300,000	AerCap Global Aviation Trust, 144a,
		6.500%, 6/15/45(A)		4,418,250
	590,112	Air Canada 2013-1 Class A Pass
		Through Trust (Canada), 144a,
		4.125%, 5/15/25		624,043
	2,745,000	Asciano Finance Ltd. (Australia), 144a,
		5.000%, 4/7/18		2,839,263
	6,715,054	Continental Airlines 2012-2 Class A
		Pass Through Trust,
		4.000%, 10/29/24		7,185,108
	4,072,515	Delta Air Lines 2002-1 Class G-1 Pass
		Through Trust, 6.718%, 1/2/23		4,703,755
	15,260,000	General Electric Co., Ser D,
		5.000%, 12/29/49(A)(B)		16,228,247
	6,183,678	Hawaiian Airlines 2013-1 Class A Pass
		Through Certificates,
		3.900%, 1/15/26		6,245,515
	1,500,000	Owens Corning, 3.400%, 8/15/26		1,506,958
	3,180,000	Owens Corning, 4.200%, 12/15/22		3,416,417
	8,320,000	Stanley Black & Decker, Inc.,
		5.750%, 12/15/53(A)†		8,892,000
	2,500,266	US Airways 2012-2 Class A Pass
		Through Trust, 4.625%, 6/3/25		2,725,290
				58,784,846
		Consumer Discretionary — 4.5%
	6,615,000	CalAtlantic Group, Inc., 5.250%, 6/1/26		6,618,962
	3,000,000	CalAtlantic Group, Inc.,
		5.875%, 11/15/24		3,210,000
	4,175,000	General Motors Financial Co., Inc.,
		3.700%, 5/9/23		4,246,217
	1,835,000	Harley-Davidson, Inc., 3.500%, 7/28/25		1,940,773
	2,000,000	Home Depot, Inc. (The),
		4.200%, 4/1/43		2,253,706
	700,000	Interpublic Group of Cos., Inc. (The),
		3.750%, 2/15/23		731,225
	3,250,000	Interpublic Group of Cos., Inc. (The),
		4.200%, 4/15/24		3,490,149
	2,552,996	Northwest Airlines 2007-1 Class A Pass
		Through Trust, 7.027%, 11/1/19		2,897,651
	3,185,000	Time Warner, Inc., 3.875%, 1/15/26		3,449,753
	3,535,000	Toll Brothers Finance Corp.,
		4.375%, 4/15/23		3,623,375
				32,461,811

 6

Touchstone Flexible Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Corporate Bonds — 46.1% (Continued)
		Information Technology — 2.7%
$	3,490,000	Alphabet, Inc., 1.998%, 8/15/26	$	3,445,904
	2,500,000	Altera Corp., 2.500%, 11/15/18		2,566,172
	5,200,000	Microsoft Corp., 4.450%, 11/3/45		5,911,906
	7,000,000	NXP BV / NXP Funding LLC
		(Netherlands), 144a, 3.875%, 9/1/22		7,332,500
				19,256,482
		Consumer Staples — 2.0%
	6,255,000	Archer-Daniels-Midland Co.,
		2.500%, 8/11/26		6,270,788
	6,180,000	CVS Health Corp., 2.125%, 6/1/21		6,242,727
	1,755,000	Kroger Co. (The), 2.650%, 10/15/26		1,741,894
				14,255,409
		Utilities — 1.8%
	1,590,000	Duke Energy Progress LLC,
		4.200%, 8/15/45		1,765,100
	1,300,000	NextEra Energy Capital Holdings, Inc.,
		2.913%, 10/1/66(A)		1,074,944
	3,700,000	NextEra Energy Capital Holdings, Inc.,
		6.650%, 6/15/67(A)		3,096,900
	2,440,000	Northern States Power Co.,
		3.600%, 5/15/46		2,553,782
	5,211,000	WEC Energy Group, Inc.,
		6.250%, 5/15/67(A)		4,501,001
				12,991,727
		Energy — 1.6%
	2,255,000	EOG Resources, Inc., 2.625%, 3/15/23		2,251,115
	4,825,000	Exxon Mobil Corp., 2.709%, 3/6/25		4,957,958
	3,875,000	Transcanada Trust (Canada),
		5.875%, 8/15/76(A)		4,099,750
				11,308,823
		Real Estate — 0.7%
	1,200,000	American Tower Corp., REIT,
		4.500%, 1/15/18		1,244,598
	1,000,000	CubeSmart LP, REIT, 4.000%, 11/15/25		1,066,321
	2,101,000	DDR Corp., MTN, REIT, 7.500%, 7/15/18		2,301,454
	785,000	Essex Portfolio LP, REIT, 3.500%, 4/1/25		810,181
				5,422,554
		Materials — 0.2%
	1,750,000	BHP Billiton Finance USA Ltd.
		(Australia), 144a,
		6.250%, 10/19/75(A)		1,894,375
		Telecommunication Services — 0.2%
	1,388,000	Verizon Communications, Inc.,
		4.672%, 3/15/55		1,460,079
		Total Corporate Bonds	$	331,661,814
		U.S. Treasury Obligations — 16.9%
	24,972,900	U.S. Treasury Bond, 3.000%, 11/15/45		28,494,478
	12,615,000	U.S. Treasury Note, 1.375%, 10/31/20		12,762,343
	6,500,000	U.S. Treasury Note, 1.625%, 2/15/26		6,511,174
	7,260,000	U.S. Treasury Note, 1.750%, 5/15/23		7,423,067
	2,605,000	U.S. Treasury Note, 2.000%, 11/30/22		2,706,757
	14,862,400	U.S. Treasury Note, 2.125%, 5/15/25		15,538,178
	3,150,000	U.S. Treasury Note, 2.250%, 3/31/21		3,302,454
	3,844,100	U.S. Treasury Note, 2.250%, 11/15/24		4,058,678
	6,235,000	U.S. Treasury Note, 2.250%, 11/15/25		6,581,822
	25,800,000	United States Treasury Inflation
		Indexed Bonds, 0.625%, 1/15/26		27,482,249
	6,220,000	United States Treasury Inflation
		Indexed Bonds, 1.000%, 2/15/46		6,983,593
		Total U.S. Treasury Obligations	$	121,844,793
		Asset-Backed Securities — 16.6%
	10,515,000	Ally Master Owner Trust, Ser 2014-1,
		Class A2, 1.290%, 1/15/19		10,517,062
	1,485,120	American Homes 4 Rent Trust, Ser
		2014-SFR2, Class A, 144a,
		3.786%, 10/17/36		1,604,914
	5,435,000	Cabela's Credit Card Master Note
		Trust, Ser 2013-1A, Class A, 144a,
		2.710%, 2/17/26		5,603,104
	3,930,000	Capital Auto Receivables Asset Trust,
		Ser 2013-1, Class D, 2.190%, 9/20/21		3,944,166
	3,315,000	Capital One Multi-Asset Execution
		Trust, Ser 2013-A3, Class A3,
		0.960%, 9/16/19		3,315,284
	15,335,000	Chase Issuance Trust, Ser 2013-A8,
		Class A8, 1.010%, 10/15/18		15,336,392
	5,400,000	Chrysler Capital Auto Receivables
		Trust, Ser 2013-AA, Class C, 144a,
		2.280%, 7/15/19		5,447,023
	9,646,000	Citibank Credit Card Issuance Trust,
		Ser 2014-A2, Class A2,
		1.020%, 2/22/19		9,649,129
	1,090,000	CNH Equipment Trust, Ser 2013-D,
		Class B, 1.750%, 4/15/21		1,093,155
	665,749	Conseco Financial Corp., Ser 1998-4,
		Class A7, 6.870%, 4/1/30(A)		711,597
	2,270,303	Countrywide Asset-Backed
		Certificates, Ser 2004-8, Class M1,
		1.575%, 1/25/35(A)		2,256,244
	879,139	CWABS, Inc. Asset-Backed Certificates,
		Ser 2003-5, Class MF1,
		5.398%, 1/25/34(A)		877,913
	5,570,000	Discover Card Execution Note Trust,
		Ser 2013-A5, Class A5,
		1.040%, 4/15/19		5,569,998
	10,624,000	Discover Card Execution Note Trust,
		Ser 2014-A3, Class A3,
		1.220%, 10/15/19		10,639,387
	2,469,169	Encore Credit Receivables Trust, Ser
		2005-4, Class M2, 0.965%, 1/25/36(A)		2,352,971
	1,300,000	Ford Credit Auto Owner Trust, Ser
		2013-A, Class D, 1.860%, 8/15/19		1,303,362
	4,820,000	Ford Credit Floorplan Master Owner
		Trust A, Ser 2012-2, Class A,
		1.920%, 1/15/19		4,833,698

 7

Touchstone Flexible Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Asset-Backed Securities — 16.6% (Continued)
$	6,700,000	Merrill Lynch Mortgage Investors
		Trust, Ser 2006-FF1, Class M3,
		0.835%, 8/25/36(A)	$	6,378,213
	689,777	Mid-State Capital Corp. Trust, Ser
		2005-1, Class M2, 7.079%, 1/15/40		756,450
	7,906,489	Nomura Home Equity Loan, Inc.
		Home Equity Loan Trust, Ser
		2005-FM1, Class M2,
		1.015%, 5/25/35(A)		7,532,523
	2,240,000	Oscar US Funding Trust, Ser 2014-1A,
		Class A4, 144a, 2.550%, 12/15/21		2,216,753
	174,782	RAMP Trust, Ser 2003-RZ5, Class A7,
		5.470%, 9/25/33(C)		179,475
	2,335,000	RAMP Trust, Ser 2005-EFC5, Class M3,
		0.985%, 10/25/35(A)		2,041,546
	8,455,000	Santander Drive Auto Receivables
		Trust, Ser 2014-4, Class D,
		3.100%, 11/16/20		8,669,426
	4,281,197	Tax Ease Funding LLC, Ser 2016-1A,
		Class A, 144a, 3.131%, 6/15/28		4,270,316
	2,660,000	Wells Fargo Home Equity
		Asset-Backed Securities Trust, Ser
		2005-4, Class M1,
		0.985%, 12/25/35(A)		2,584,210
		Total Asset-Backed Securities	$	119,684,311
		Agency Collateralized Mortgage
		Obligations — 2.9%
	1,712,957	Fannie Mae REMICs, Ser 2008-60, Class
		SA, 5.975%, 7/25/38(A)(D)		338,983
	34,319,500	FHLMC Multifamily Structured Pass
		Through Certificates, Ser K006, Class
		AX1, 1.158%, 1/25/20(A)		930,347
	15,248,704	FHLMC Multifamily Structured Pass
		Through Certificates, Ser K019, Class
		X1, 1.837%, 3/25/22(A)		1,160,277
	27,123,732	FHLMC Multifamily Structured Pass
		Through Certificates, Ser K025, Class
		X1, 1.010%, 10/25/22(A)		1,190,881
	73,103,375	FHLMC Multifamily Structured Pass
		Through Certificates, Ser K033, Class
		X1, 0.428%, 7/25/23(A)		1,376,018
	4,235,000	FHLMC Multifamily Structured Pass
		Through Certificates, Ser K048, Class
		A2, 3.284%, 6/25/25(A)		4,640,768
	34,580,537	FHLMC Multifamily Structured Pass
		Through Certificates, Ser K710, Class
		X1, 1.892%, 5/25/19(A)		1,297,386
	1,639,285	Freddie Mac REMICs, Ser 3199, Class
		DS, 6.626%, 8/15/36(A)(D)		346,455
	1,500,000	FREMF Mortgage Trust, Ser 2013-K712,
		Class C, 144a, 3.484%, 12/25/19(A)		1,523,662
	1,900,000	FREMF Mortgage Trust, Ser 2013-K713,
		Class C, 144a, 3.274%, 4/25/20(A)		1,894,227
	2,365,324	GNMA, Ser 2011-83, Class NI,
		4.500%, 10/16/37(D)		96,808
	17,990,249	GNMA, Ser 2012-27, Class IO,
		1.072%, 4/16/53(A)		793,728
	51,085,625	GNMA, Ser 2012-86, Class IO,
		0.969%, 12/16/53(A)		2,458,097
	31,318,372	GNMA, Ser 2016-110, Class IO,
		1.074%, 5/16/58(A)		2,676,603
		Total Agency Collateralized
		Mortgage Obligations	$	20,724,240
		Non-Agency Collateralized Mortgage
		Obligations — 0.9%
	242,934	Alternative Loan Trust, Ser 2004-30CB,
		Class 3A1, 5.000%, 2/25/20		245,311
	2,053,486	American Home Mortgage
		Investment Trust, Ser 2004-4, Class
		4A, 3.245%, 2/25/45(A)		2,064,258
	132,756	Bear Stearns Asset Backed Securities
		Trust, Ser 2003-AC7, Class A2,
		5.750%, 1/25/34(C)		136,301
	2,157,969	GSR Mortgage Loan Trust, Ser
		2005-AR4, Class 6A1,
		3.202%, 7/25/35(A)		2,121,910
	876,906	JP Morgan Mortgage Trust, Ser
		2014-2, Class 1A1, 144a,
		3.000%, 6/25/29(A)		903,076
	7,557	Merrill Lynch Mortgage Investors,
		Trust, Ser 2003-A1, Class 2A,
		3.184%, 12/25/32(A)		7,460
	539,897	Morgan Stanley Mortgage Loan Trust,
		Ser 2004-7AR, Class 2A6,
		2.956%, 9/25/34(A)		548,630
	250,028	Nomura Asset Acceptance Corp.
		Alternative Loan Trust, Ser
		2005-AR4, Class 1A,
		4.169%, 8/25/35(A)		247,616
	126,258	RALI Trust, Ser 2004-QS6, Class A1,
		5.000%, 5/25/19		126,228
	239,128	Wells Fargo Mortgage Backed
		Securities Trust, Ser 2004-X, Class
		1A5, 2.928%, 11/25/34(A)		241,533
		Total Non-Agency Collateralized
		Mortgage Obligations	$	6,642,323
		Municipal Bond — 0.5%
	3,285,000	City of New York, NY, Public
		Improvements, Txbl, Subser F3,
		UTGO, 4.000%, 6/1/26		3,619,446
		U.S. Government Mortgage-Backed
		Obligations — 0.3%
	60,303	FHLMC, Pool #G03170, 6.500%, 8/1/37		69,271
	90,834	FHLMC, Pool #G12780, 6.500%, 9/1/22		98,646
	117,191	FNMA, Pool #844415, 5.500%, 10/1/35		133,081
	758,574	FNMA, Pool #AB1952, 4.000%, 12/1/40		832,573
	547,182	FNMA, Pool #AB1953, 4.000%, 12/1/40		596,746

 8

Touchstone Flexible Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		U.S. Government Mortgage-Backed
		Obligations — 0.3% (Continued)
$	496,815	FNMA, Pool #AB3387, 4.000%, 8/1/41	$	534,680
	44,222	Freddie Mac Non Gold, Pool #972110,
		2.000%, 10/1/32(A)		45,819
		Total U.S. Government
		Mortgage-Backed Obligations	$	2,310,816
		Sovereign Government Obligation — 0.3%
	1,795,000	Svensk Exportkredit AB (Sweden),
		1.750%, 5/30/17		1,804,463
		U.S. Government Agency Obligation — 0.2%
	1,500,000	FHLMC, 2.375%, 1/13/22		1,579,557
		Commercial Mortgage-Backed Security — 0.0%
	58,194	Bear Stearns Commercial Mortgage
		Securities Trust, Ser 2005-PWR9,
		Class AJ, 4.985%, 9/11/42(A)		58,132

Shares
		Preferred Stocks — 5.5%
		Financials — 2.7%
	83,250	CoBank ACB, Ser H, 6.200%(A)		8,730,844
	142,000	Reinsurance Group of America, Inc.,
		5.750%, 6/15/56(A)		4,130,780
	123,000	State Street Corp., Ser G, 5.350%(A)		3,297,630
	127,000	WR Berkley Corp., 5.750%, 6/1/56		3,286,760
				19,446,014
		Utilities — 1.0%
	44,000	Dominion Resources, Inc., 6.375%,
		7/1/2017		2,189,440
	173,100	SCE Trust V, Ser K, 5.450%(A)†		5,139,339
				7,328,779
		Real Estate — 0.9%
	89,200	AGNC Investment Corp., Ser B REIT,
		7.750%, 12/31/49(B)		2,287,980
	143,175	PS Business Parks, Inc., Ser T REIT,
		6.000%		3,656,690
				5,944,670
		Materials — 0.4%
	104,023	CHS, Inc., Ser 3, 6.750%(A)†		2,978,178
		Industrials — 0.4%
	114,838	Seaspan Corp., (Marshall Islands),
		6.375%, 4/30/19		2,916,885
		Telecommunication Services — 0.1%
	32,973	Telephone & Data Systems, Inc.,
		6.875%, 11/15/59		850,044
		Total Preferred Stocks	$	39,464,570
		Common Stocks — 4.4%
		Real Estate — 2.7%
	154,269	AGNC Investment Corp. REIT		3,014,416
	37,883	CyrusOne, Inc. REIT		1,802,094
	98,423	Duke Realty Corp. REIT		2,689,901
	80,248	Kimco Realty Corp. REIT		2,323,180
	91,769	Prologis, Inc. REIT		4,913,312
	24,360	Simon Property Group, Inc. REIT		5,042,764
				19,785,667
		Health Care — 0.6%
	21,785	AbbVie, Inc.		1,373,981
	15,627	Medtronic PLC (Ireland)		1,350,173
	10,665	UnitedHealth Group, Inc.		1,493,100
				4,217,254
		Consumer Discretionary — 0.5%
	59,558	Dick's Sporting Goods, Inc.		3,378,130
		Information Technology — 0.4%
	60,930	Corning, Inc.		1,440,994
	22,164	Qualcomm, Inc.		1,518,234
				2,959,228
		Industrials — 0.2%
	9,512	Raytheon Co.		1,294,869
		Total Common Stocks	$	31,635,148
		Exchange Traded Funds — 2.0%
	409,597	iShares MSCI Japan ETF		5,136,346
	358,938	VanEck Vectors Gold Miners ETF		9,486,731
		Total Exchange Traded Funds	$	14,623,077
		Investment Funds — 5.3%
	21,036,006	Dreyfus Government Cash
		Management, Institutional
		Shares, 0.30%∞Ω		21,036,006
	23,600	Eaton Vance Tax-Advantaged
		Dividend Income Fund±		475,540
	15,164,763	Invesco Government & Agency
		Portfolio, Institutional Class,
		0.31%**∞Ω		15,164,763
	135,400	Nuveen Multi-Market Income Fund,
		Inc.±		1,015,500
		Total Investment Funds	$	37,691,809
Total Investment Securities —101.9%
(Cost $716,848,367)			$	733,344,499
Liabilities in Excess of Other Assets — (1.9%)				(13,967,270	)
Net Assets — 100.0%			$	719,377,229

 9

Touchstone Flexible Income Fund (Unaudited) (Continued)

^(A) Variable rate security - Rate reflected is the rate in effect as of September 30, 2016.

^(B) Perpetual Bond - A Bond with no definite maturity date.

^(C) Step Bond - A bond that pays an initial interest rate for the first period and then a higher interest rate for the following periods until maturity. The interest rate shown reflects the rate in effect as of September 30, 2016.

^(D) Interest only security. This type of security represents the right to receive the monthly interest payments on an underlying pool of mortgages. Payments of principal on the pool reduce the value of the “interest only” holding.

** Represents collateral for securities loaned.

^± Closed-End Fund.

† All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2016 was $14,518,752.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ETF - Exchange Traded Fund

EUR - Euro

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

FREMF - Finnish Real Estate Management Federation

GNMA - Government National Mortgage Association

JPY - Japanese Yen

KRW - South Korean Won

LLC - Limited Liability Company

LP - Limited Partnership

MTN - Medium Term Note

MXN - Mexican Peso

PHP - Philippine Peso

PLC - Public Limited Company

REIT - Real Estate Investment Trust

REMIC - Real Estate Mortgage Investment Conduit

SEK - Swedish Krona

USD - United States Dollar

UTGO - Unlimited Tax General Obligation

144a - This is a restricted security that was sold in a transaction qualifying for the exemption under Rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2016, these securities were valued at $70,791,502 or 9.9% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

Other Information:

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

 10

Touchstone Flexible Income Fund (Unaudited) (Continued)

Valuation inputs at Reporting Date:
Description	Level 1		Level 2		Level 3		Total
Assets:
Corporate Bonds	$	—	$	331,661,814	$	—	$	331,661,814
U.S. Treasury Obligations		—		121,844,793		—		121,844,793
Asset-Backed Securities		—		119,684,311		—		119,684,311
Agency Collateralized Mortgage Obligations		—		20,724,240		—		20,724,240
Non-Agency Collateralized Mortgage Obligations		—		6,642,323		—		6,642,323
Municipal Bond		—		3,619,446		—		3,619,446
U.S. Government Mortgage-Backed Obligations		—		2,310,816		—		2,310,816
Sovereign Government Obligation		—		1,804,463		—		1,804,463
U.S. Government Agency Obligation		—		1,579,557		—		1,579,557
Commercial Mortgage-Backed Security		—		58,132		—		58,132
Preferred Stocks		39,464,570		—		—		39,464,570
Common Stocks		31,635,148		—		—		31,635,148
Exchange Traded Funds		14,623,077		—		—		14,623,077
Investment Funds		37,691,809		—		—		37,691,809
Total Assets	$	123,414,604	$	609,929,895	$	—	$	733,344,499

Valuation inputs at Reporting Date:
Description	Level 1			Level 2			Level 3		Total
Other Financial Instruments***
Assets:
Forward Foreign Currency Contracts	$	—		$	244,845		$	—	$	244,845
Futures Interest Rate Contracts		72,655			—			—		72,655
										317,500
Liabilities:
Forward Foreign Currency Contracts		—			(243,902	)		—		(243,902	)
Futures Interest Rate Contracts		(239,292	)		—			—		(239,292	)
									$	(483,194	)
Total	$	123,247,967		$	609,930,838		$	—	$	733,178,805

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

Transactions in written options for the period ended September 30, 2016.

	Number of			Premiums
	Contracts			Received
Beginning of Period, March 31, 2016		—		$	—
Call Options Written		18,670			498,816
Call Options Closed		(650	)		(106,665	)
Call Options Expired		(18,020	)		(392,151	)
End of Period, September 30, 2016		—		$	—

 11

Touchstone Flexible Income Fund (Unaudited) (Continued)

Futures Contracts

At September 30, 2016, $1,283,489 was segregated with the broker as collateral for futures contracts. The Fund had the following futures contracts, brokered by Morgan Stanley & Wells Fargo open at September 30, 2016:

						Unrealized
		Number of		Notional		Appreciation/
Description	Expiration Date	Contracts		Value		(Depreciation)
Short Futures:
90 Day Euro Futures	March 2019		538		132,859,100	$	72,655
3 Month Euribor Futures	March 2019		500		140,917,989		(15,300	)
Euro-Bond Futures	December 2016		115		21,406,110		(26,129	)
10-Year JGB Futures	December 2016		29		43,566,491		(197,863	)
						$	(166,637	)

Forward Foreign Currency Contracts

						Unrealized
		Contract to				Appreciation/
Counterparty	Expiration Date	Receive		Deliver		(Depreciation)
ANZ CAPITAL MARKETS	10/21/2016	USD	7,065,123	KRW	7,920,709,852	$	(125,553	)
ANZ CAPITAL MARKETS	12/22/2016	MXN	141,441,286	USD	7,061,825		164,858
MORGAN STANLEY	10/17/2016	SEK	57,544,180	USD	6,780,747		(67,146	)
MORGAN STANLEY	10/21/2016	EUR	6,314,354	USD	7,072,605		27,781
MORGAN STANLEY	10/21/2016	PHP	341,014,850	USD	7,079,256		(51,203	)
MORGAN STANLEY	11/07/2016	JPY	723,118,395	USD	7,080,914		52,206
						$	943

See accompanying Notes to Financial Statements.

 12

Portfolio of Investments

Touchstone Focused Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 94.9%
Information Technology — 20.2%
Alphabet, Inc. - Class A*		29,240	$	23,510,714
Alphabet, Inc. - Class C*		40,793		31,707,991
Apple, Inc.		389,406		44,022,348
Avnet, Inc.		586,286		24,072,902
Cisco Systems, Inc.		1,174,977		37,270,270
International Business Machines Corp.		159,441		25,327,203
LinkedIn Corp. - Class A*		164,284		31,397,958
Microsoft Corp.		656,116		37,792,282
Oracle Corp.		926,051		36,375,283
				291,476,951
Health Care — 15.0%
Abbott Laboratories		783,785		33,146,268
Biogen, Inc.*		113,700		35,591,511
Bio-Rad Laboratories, Inc. - Class A*		209,455		34,310,824
Bristol-Myers Squibb Co.		579,792		31,262,385
Johnson & Johnson		287,430		33,954,106
Novartis AG ADR		595,843		47,047,763
				215,312,857
Consumer Discretionary — 13.2%
Amazon.com, Inc.*		71,821		60,136,442
Carnival Corp. (Panama)		459,948		22,454,661
Comcast Corp. - Class A		428,517		28,427,818
Priceline Group, Inc. (The)*		18,706		27,525,692
Twenty-First Century Fox, Inc. - Class A		1,113,372		26,965,870
Vista Outdoor, Inc.*		624,293		24,884,319
				190,394,802
Financials — 12.6%
Bank of America Corp.		1,225,756		19,183,081
Bank of New York Mellon Corp. (The)		1,291,142		51,490,743
Berkshire Hathaway, Inc. - Class B*		612,579		88,499,288
Goldman Sachs Group, Inc. (The)		135,429		21,840,635
				181,013,747
Industrials — 11.7%
CSX Corp.		620,324		18,919,882
General Electric Co.		1,554,643		46,048,526
Stericycle, Inc.*		333,460		26,723,484
Union Pacific Corp.		283,486		27,648,390
United Technologies Corp.		286,000		29,057,600
WESCO International, Inc.*		323,120		19,868,649
				168,266,531
Consumer Staples — 8.6%
JM Smucker Co. (The)		183,626		24,888,668
Mondelez International, Inc. - Class A		1,177,556		51,694,708
Sysco Corp.		978,643		47,963,293
				124,546,669
Energy — 6.6%
Exxon Mobil Corp.		262,945		22,949,840
Halliburton Co.		543,327		24,384,516
Schlumberger Ltd. (Curacao)		291,408		22,916,325
World Fuel Services Corp.		537,325		24,856,654
				95,107,335
Real Estate — 2.7%
Jones Lang LaSalle, Inc.		97,053		11,043,661
Simon Property Group, Inc. REIT		135,768		28,105,334
				39,148,995
Telecommunication Services — 2.4%
AT&T, Inc.		863,362		35,061,131
Materials — 1.9%
Agrium, Inc. (Canada)		296,726		26,910,081
Total Common Stocks			$	1,367,239,099
Investment Fund — 5.0%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		71,736,961		71,736,961
Total Investment Securities —99.9%
(Cost $1,204,314,751)			$	1,438,976,060
Other Assets in Excess of Liabilities — 0.1%				804,959
Net Assets — 100.0%			$	1,439,781,019

* Non-income producing security.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ADR - American Depositary Receipt

REIT - Real Estate Investment Trust

 13

Touchstone Focused Fund (Unaudited) (Continued)

Other Information:

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

Valuation inputs at Reporting Date: 

Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	1,367,239,099	$	—	$	—	$	1,367,239,099
Investment Fund		71,736,961		—		—		71,736,961
Total	$	1,438,976,060	$	—	$	—	$	1,438,976,060

See accompanying Notes to Financial Statements.

 14

Portfolio of Investments

Touchstone Growth Opportunities Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 98.9%
Information Technology — 32.7%
Alphabet, Inc. - Class A*		10,872	$	8,741,740
Alphabet, Inc. - Class C*		10,935		8,499,666
Apple, Inc.		104,680		11,834,074
Facebook, Inc. - Class A*		67,350		8,638,984
Intel Corp.		76,060		2,871,265
Microsoft Corp.		159,900		9,210,240
Monolithic Power Systems, Inc.		40,105		3,228,452
ON Semiconductor Corp.*		476,871		5,875,051
Palo Alto Networks, Inc.*		35,440		5,646,655
PayPal Holdings, Inc.*		105,260		4,312,502
Red Hat, Inc.*		68,060		5,501,290
Salesforce.com, Inc.*		80,770		5,761,324
ServiceNow, Inc.*		39,060		3,091,599
Vantiv, Inc. - Class A*		52,680		2,964,304
Visa, Inc. - Class A		91,610		7,576,147
				93,753,293
Health Care — 19.9%
Abbott Laboratories		128,580		5,437,647
ARIAD Pharmaceuticals, Inc.*		262,570		3,594,583
Biogen, Inc.*		13,681		4,282,563
Bristol-Myers Squibb Co.		87,130		4,698,050
Celgene Corp.*		67,935		7,101,246
Cooper Cos., Inc. (The)		20,256		3,631,091
Danaher Corp.		34,760		2,724,836
Gilead Sciences, Inc.		69,000		5,459,280
Jazz Pharmaceuticals PLC (Ireland)*		37,703		4,580,160
Merrimack Pharmaceuticals, Inc.*†		399,060		2,534,031
Mettler-Toledo International, Inc.*		12,579		5,281,042
Nektar Therapeutics*		70,890		1,217,890
Steris PLC (United Kingdom)		89,490		6,541,719
				57,084,138
Consumer Discretionary — 18.9%
Amazon.com, Inc.*		10,446		8,746,540
Charter Communications, Inc.*		23,948		6,465,242
Dollar Tree, Inc.*		49,570		3,912,560
Home Depot, Inc. (The)		44,510		5,727,547
Installed Building Products, Inc.*		91,017		3,264,780
LKQ Corp.*		156,130		5,536,370
Lululemon Athletica, Inc.*		23,640		1,441,567
Newell Rubbermaid, Inc.		130,230		6,857,912
Starbucks Corp.		69,940		3,786,552
TJX Cos., Inc.		69,470		5,194,967
Vail Resorts, Inc.		21,430		3,361,938
				54,295,975
Industrials — 13.0%
General Electric Co.		126,690		3,752,558
HD Supply Holdings, Inc.*		100,950		3,228,381
Lennox International, Inc.		29,910		4,696,767
Lockheed Martin Corp.		20,583		4,934,157
TransDigm Group, Inc.*		19,125		5,529,420
Union Pacific Corp.		54,750		5,339,768
United Continental Holdings, Inc.*		79,126		4,151,741
United Parcel Service, Inc. - Class B		52,280		5,717,341
				37,350,133
Materials — 4.2%
Berry Plastics Group, Inc.*		103,850		4,553,822
Dow Chemical Co. (The)		70,650		3,661,790
Vulcan Materials Co.		32,730		3,722,383
				11,937,995
Consumer Staples — 4.0%
Constellation Brands, Inc. - Class A		36,500		6,076,885
Kellogg Co.		70,880		5,491,074
				11,567,959
Financials — 3.9%
CME Group, Inc.		42,390		4,430,603
East West Bancorp, Inc.		79,672		2,924,759
Synchrony Financial		141,060		3,949,680
				11,305,042
Energy — 1.5%
Baker Hughes, Inc.		82,890		4,183,458
Real Estate — 0.8%
STAG Industrial, Inc. REIT		90,070		2,207,616
Total Common Stocks			$	283,685,609
Investment Funds — 2.1%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		3,359,411		3,359,411
Invesco Government & Agency Portfolio, Institutional Class, 0.31%**∞Ω		2,567,319		2,567,319
Total Investment Funds			$	5,926,730
Total Investment Securities —101.0%
(Cost $255,321,778)			$	289,612,339
Liabilities in Excess of Other Assets — (1.0%)				(2,962,815	)
Net Assets — 100.0%			$	286,649,524

* Non-income producing security.

** Represents collateral for securities loaned.

† All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2016 was $2,508,072.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

 15

Touchstone Growth Opportunities Fund (Unaudited) (Continued)

Portfolio Abbreviations:

PLC - Public Limited Company

REIT - Real Estate Investment Trust

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	$	283,685,609	$	—	$	—	$	283,685,609
Investment Funds		5,926,730		—		—		5,926,730
Total	$	289,612,339	$	—	$	—	$	289,612,339

See accompanying Notes to Financial Statements.

 16

Portfolio of Investments

Touchstone International Growth Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 95.9%
Japan — 12.8%
Consumer Discretionary — 6.2%
Fuji Heavy Industries Ltd. ADR		3,082	$	231,039
Sony Corp. ADR		8,991		298,591
Toyota Motor Corp. ADR		1,330		154,360
Health Care — 2.6%
Eisai Co. Ltd. ADR		3,023		188,620
Ono Pharmaceutical Co. Ltd. ADR		10,102		93,949
Industrials — 2.1%
Kubota Corp. ADR		2,992		226,494
Information Technology — 0.5%
Hitachi Ltd. ADR		1,128		52,706
Telecommunication Services — 1.4%
NTT DOCOMO, Inc. ADR		6,180		157,034
Total Japan				1,402,793
Canada — 11.7%
Energy — 2.4%
Cameco Corp.		8,614		73,736
Peyto Exploration & Development Corp.		3,784		106,325
Suncor Energy, Inc.		3,183		88,424
Financials — 3.7%
Brookfield Asset Management, Inc. - Class A		7,311		257,201
Sun Life Financial, Inc.		4,592		149,424
Industrials — 2.0%
Canadian National Railway Co.		3,318		216,997
Information Technology — 2.0%
CGI Group, Inc.*		4,699		223,813
Materials — 1.6%
Agrium, Inc.		1,896		171,951
Total Canada				1,287,871
Germany — 10.1%
Consumer Discretionary — 1.4%
Continental AG ADR		3,565		150,942
Consumer Staples — 1.8%
Henkel AG & Co. KGaA ADR		1,669		195,857
Financials — 1.7%
Allianz SE ADR		12,409		184,025
Health Care — 0.7%
Bayer AG ADR		777		78,088
Industrials — 1.4%
Siemens AG ADR		1,352		158,617
Information Technology — 1.5%
SAP SE ADR		1,821		166,458
Materials — 1.6%
BASF SE ADR		2,082		178,115
Total Germany				1,112,102
United Kingdom — 9.7%
Consumer Discretionary — 3.6%
Sky PLC ADR		3,389		157,402
WPP PLC ADR		2,010		236,617
Consumer Staples — 3.3%
British American Tobacco PLC ADR†		1,530		195,304
Unilever NV		3,614		166,605
Financials — 2.8%
Prudential PLC ADR		8,543		305,071
Total United Kingdom				1,060,999
China — 7.2%
Consumer Discretionary — 0.7%
Vipshop Holdings Ltd. ADR*		5,323		78,088
Energy — 1.3%
CNOOC Ltd. ADR†		1,133		143,313
Information Technology — 5.2%
Alibaba Group Holding Ltd. ADR*		1,370		144,933
Baidu, Inc. ADR*		989		180,067
Tencent Holdings Ltd. ADR		5,959		166,107
YY, Inc. ADR*		1,447		77,096
Total China				789,604
Switzerland — 7.0%
Consumer Staples — 1.8%
Nestle SA ADR		2,571		203,160
Financials — 1.3%
Swiss Re AG ADR		6,474		146,571
Health Care — 3.4%
Novartis AG ADR		2,296		181,292
Roche Holding AG ADR		6,097		188,824
Information Technology — 0.5%
Luxoft Holding, Inc.*		958		50,630
Total Switzerland				770,477
Netherlands — 6.9%
Consumer Staples — 1.0%
Heineken NV ADR		2,559		112,238
Energy — 1.1%
Core Laboratories NV		1,051		118,059

 17

Touchstone International Growth Fund (Unaudited) (Continued)

			Market
	Shares		Value
Common Stocks — 95.9% (Continued)
Netherlands — (Continued)
Financials — 0.8%
ING Groep NV ADR		7,576	$	93,488
Information Technology — 2.2%
NXP Semiconductors NV*		2,331		237,785
Materials — 1.8%
LyondellBasell Industries NV - Class A		2,401		193,665
Total Netherlands				755,235
France — 6.8%
Consumer Staples — 1.6%
L'Oreal SA ADR		4,742		179,200
Health Care — 2.2%
Cellectis SA ADR*†		2,698		64,968
Essilor International SA ADR		2,662		171,593
Information Technology — 3.0%
Criteo SA ADR*		2,754		96,693
Dassault Systemes ADR		2,724		235,544
Total France				747,998
Singapore — 6.0%
Financials — 1.2%
United Overseas Bank Ltd. ADR		4,853		134,040
Information Technology — 4.8%
Broadcom Ltd.		3,042		524,806
Total Singapore				658,846
Sweden — 3.4%
Financials — 1.9%
Swedbank AB ADR		9,027		211,412
Industrials — 1.5%
Atlas Copco AB ADR - Class A		5,253		158,273
Total Sweden				369,685
United States — 3.2%
Consumer Discretionary — 1.4%
Carnival PLC ADR†		3,064		150,381
Financials — 0.8%
OM Asset Management PLC		6,519		90,679
Health Care — 1.0%
Medtronic PLC		1,301		112,406
Total United States				353,466
Belgium — 2.7%
Consumer Staples — 2.2%
Anheuser-Busch InBev NV ADR		1,844		242,320
Health Care — 0.5%
Galapagos NV ADR*		867		56,060
Total Belgium				298,380
India — 2.2%
Financials — 1.2%
HDFC Bank Ltd. ADR		1,819		130,768
Information Technology — 1.0%
WNS Holdings Ltd. ADR*		3,522		105,484
Total India				236,252
Taiwan — 1.7%
Information Technology — 1.7%
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		5,980		182,928
Denmark — 1.6%
Health Care — 1.6%
Novo Nordisk A/S ADR		4,245		176,550
Israel — 1.4%
Health Care — 0.6%
Taro Pharmaceuticals Industries Ltd.*†		591		65,311
Information Technology — 0.8%
Mellanox Technologies Ltd.*		2,046		88,490
Total Israel				153,801
Spain — 1.2%
Health Care — 1.2%
Grifols SA ADR		8,461		135,122
Norway — 0.3%
Materials — 0.3%
Yara International ASA ADR		940		31,462
Total Common Stocks			$	10,523,571
Investment Funds — 7.7%
Dreyfus Government Cash
Management, Institutional Shares, 0.30%∞Ω		423,462		423,462
Invesco Government & Agency Portfolio, Institutional Class, 0.31%**∞Ω		426,781		426,781
Total Investment Funds			$	850,243

 18

Touchstone International Growth Fund (Unaudited) (Continued)

	Market
	Value
Total Investment Securities —103.6%
(Cost $11,166,508)	$	11,373,814
Liabilities in Excess of Other Assets — (3.6%)		(398,340	)
Net Assets — 100.0%	$	10,975,474

* Non-income producing security.

** Represents collateral for securities loaned.

† All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2016 was $417,894.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PLC - Public Limited Company

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	$	10,523,571	$	—	$	—	$	10,523,571
Investment Funds	$	850,243	$	—	$	—	$	850,243
Total	$	11,373,814	$	—	$	—	$	11,373,814

See accompanying Notes to Financial Statements.

 19

Portfolio of Investments

Touchstone International Value Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 98.2%
United Kingdom — 17.7%
Consumer Staples — 5.4%
Dairy Crest Group PLC		63,047	$	529,532
Imperial Brands PLC		16,239		835,827
Energy — 3.1%
BP PLC		82,500		480,868
BP PLC ADR		8,600		302,376
Health Care — 2.9%
GlaxoSmitKline PLC		34,300		730,536
Industrials — 1.5%
Rolls-Royce Holdings PLC*		41,800		389,979
Materials — 3.4%
DS Smith PLC		170,028		846,025
Utilities — 1.4%
National Grid PLC		25,205		355,964
Total United Kingdom				4,471,107
Japan — 15.1%
Industrials — 8.3%
Fuji Electric Co. Ltd.		144,000		661,797
IHI Corp.		199,000		578,335
Mabuchi Motor Co. Ltd.		6,600		366,239
Sumitomo Corp.		43,900		491,445
Information Technology — 5.3%
Canon, Inc.*		19,800		574,841
Hitachi Ltd.		94,000		440,539
Trend Micro, Inc.		8,800		306,989
Materials — 1.5%
Sumitomo Osaka Cement Co. Ltd.		81,000		376,018
Total Japan				3,796,203
Netherlands — 13.5%
Consumer Discretionary — 2.1%
Fiat Chrysler Automobiles NV		82,100		521,847
Financials — 4.2%
Aegon NV		98,500		375,723
ING Groep N.V.		56,143		693,124
Industrials — 7.2%
Airbus Group SE		10,600		642,906
CNH Industrial NV		60,000		429,630
CNH Industrial NV		15,100		109,022
Koninklijke Philips NV		21,000		621,384
Total Netherlands				3,393,636
Switzerland — 8.8%
Financials — 4.2%
Credit Suisse Group AG		35,256		463,357
Helvetia Holding AG		577		291,062
Swiss Life Holding AG		1,200		311,187
Health Care — 1.7%
Novartis AG		5,349		422,145
Industrials — 2.9%
ABB Ltd.		17,472		393,784
ABB Ltd. ADR		8,400		189,084
OC Oerlikon Corp. AG		14,600		145,897
Total Switzerland				2,216,516
France — 8.8%
Consumer Staples — 0.3%
Casino Guichard Perrachon SA		1,317		64,104
Energy — 2.2%
Technip SA		9,200		565,566
Health Care — 2.9%
Sanofi		9,525		725,342
Industrials — 2.4%
Cie de Saint-Gobain		13,800		597,130
Materials — 1.0%
Air Liquide SA		2,400		257,369
Total France				2,209,511
Germany — 5.3%
Consumer Discretionary — 1.2%
Daimler AG		4,300		303,271
Financials — 1.8%
Deutsche Boerse AG*		5,506		446,915
Health Care — 2.2%
Bayer AG		5,500		552,370
Materials — 0.1%
Linde AG		200		33,984
Total Germany				1,336,540
Singapore — 4.4%
Consumer Discretionary — 2.2%
Jardine Cycle & Carriage Ltd.		17,400		549,607
Financials — 2.2%
United Overseas Bank Ltd.		39,600		549,402
Total Singapore				1,099,009

 20

Touchstone International Value Fund (Unaudited) (Continued)

			Market
	Shares		Value
Common Stocks — 98.2% (Continued)
Ireland — 3.7%
Materials — 3.7%
CRH PLC		27,800	$	920,290
South Korea — 3.5%
Consumer Discretionary — 1.6%
Hankook Tire Co. Ltd.		7,400		399,110
Financials — 1.9%
Shinhan Financial Group Co. Ltd.		13,050		477,952
Total South Korea				877,062
Denmark — 3.1%
Financials — 3.1%
Danske Bank A/S		26,425		773,088
Austria — 2.5%
Financials — 2.5%
Erste Group Bank AG		21,600		639,616
Spain — 2.4%
Financials — 2.4%
Banco de Sabadell SA		273,973		350,997
Banco Santander SA		60,088		266,573
Total Spain				617,570
Israel — 2.3%
Health Care — 2.3%
Teva Pharmaceutical Industries Ltd. ADR		12,500		575,125
Italy — 2.1%
Energy — 2.1%
Eni SpA		36,391		524,408
Thailand — 1.8%
Consumer Staples — 1.5%
Charoen Pokphand Foods PCL		400,600		368,241
Financials — 0.3%
Bangkok Bank PCL		19,300		90,874
Total Thailand				459,115
Hong Kong — 1.2%
Utilities — 1.2%
Guangdong Investment Ltd.		194,100		310,065
Brazil — 1.2%
Industrials — 1.2%
Embraer SA ADR		17,900		308,954
United States — 0.7%
Consumer Staples — 0.7%
Coca-Cola European Partners		4,400		175,560
Czech Republic — 0.1%
Financials — 0.1%
Komercni Banka A/S		800		27,742
Colombia — 0.0%
Energy — 0.0%
Ecopetrol SA ADR*		1,300		11,388
Total Common Stocks			$	24,742,505
Investment Fund — 0.8%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		196,087		196,087
Total Investment Fund			$	196,087
Total Investment Securities —99.0%
(Cost $29,745,829)			$	24,938,592
Other Assets in Excess of Liabilities — 1.0%				260,347
Net Assets — 100.0%			$	25,198,939

* Non-income producing security.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PCL - Public Company Limited

PLC - Public Limited Company

 21

Touchstone International Value Fund (Unaudited) (Continued)

Other Information:

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

Valuation inputs at Reporting Date:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
United Kingdom	$	831,908	$	3,639,199	$	—	$	4,471,107
Japan		—		3,796,203		—		3,796,203
Netherlands		802,146		2,591,490		—		3,393,636
Switzerland		189,084		2,027,432		—		2,216,516
France		—		2,209,511		—		2,209,511
Germany		—		1,336,540		—		1,336,540
Singapore		—		1,099,009		—		1,099,009
Ireland		—		920,290		—		920,290
South Korea		399,110		477,952		—		877,062
Denmark		—		773,088		—		773,088
Austria		—		639,616		—		639,616
Spain		—		617,570		—		617,570
Israel		575,125		—		—		575,125
Italy		—		524,408		—		524,408
Thailand		—		459,115		—		459,115
Hong Kong		—		310,065		—		310,065
Brazil		308,954		—		—		308,954
United States		175,560		—		—		175,560
Czech Republic		—		27,742		—		27,742
Colombia		11,388		—		—		11,388
Investment Fund		196,087		—		—		196,087
Total	$	3,489,362	$	21,449,230	$	—	$	24,938,592

At September 30, 2016, equity securities valued at $399,110 were transferred from Level 2 to Level 1. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model, provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities. Transfers from Level 2 to Level 1 occur when there is no longer movement of the designated U.S. market index or required confidence levels were not reached in the systematic model.

See accompanying Notes to Financial Statements.

 22

Portfolio of Investments

Touchstone Mid Cap Growth Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 97.5%
Consumer Discretionary — 21.2%
Aramark		267,515	$	10,173,595
Dollar General Corp.		121,220		8,484,188
Expedia, Inc.		90,120		10,518,806
Hasbro, Inc.		116,410		9,234,805
Liberty Broadband Corp. - Class A*		202,310		14,194,070
LKQ Corp.*		387,900		13,754,934
Marriott International, Inc. - Class A		205,650		13,846,414
Newell Brands, Inc.		289,942		15,268,346
O'Reilly Automotive, Inc.*		46,144		12,925,396
PVH Corp.		108,675		12,008,588
Scripps Networks Interactive, Inc. - Class A		188,930		11,995,166
Six Flags Entertainment Corp.		272,530		14,610,333
Ulta Salon Cosmetics & Fragrance, Inc.*		36,790		8,755,284
				155,769,925
Industrials — 19.9%
Fortune Brands Home & Security, Inc.		235,740		13,696,494
IHS Markit Ltd.*		313,654		11,777,708
JB Hunt Transport Services, Inc.		169,706		13,769,945
Lennox International, Inc.		71,726		11,263,134
Macquarie Infrastructure Corp.		142,110		11,829,236
Middleby Corp. (The)*		109,520		13,538,862
Nielsen Holdings PLC		277,551		14,868,407
Norfolk Southern Corp.		140,530		13,639,842
TransDigm Group, Inc.*		47,140		13,629,117
TransUnion*		327,700		11,305,650
United Continental Holdings, Inc.*		334,390		17,545,443
				146,863,838
Information Technology — 18.0%
Alliance Data Systems Corp.*		50,990		10,938,885
Ciena Corp.*		341,720		7,449,496
FleetCor Technologies, Inc.*		67,415		11,712,008
Microsemi Corp.*		282,520		11,860,190
NICE Ltd. ADR†		183,083		12,255,576
Palo Alto Networks, Inc.*		95,975		15,291,697
Red Hat, Inc.*		173,940		14,059,570
Sabre Corp.		399,590		11,260,446
ServiceNow, Inc.*		192,280		15,218,962
Splunk, Inc.*		154,910		9,090,119
Vantiv, Inc.*		237,410		13,359,061
				132,496,010
Health Care — 17.8%
Agilent Technologies, Inc.		235,740		11,100,997
Alnylam Pharmaceuticals, Inc.*		101,990		6,912,882
BioMarin Pharmaceutical, Inc.*		76,905		7,115,251
Cooper Cos., Inc. (The)		70,224		12,588,354
DENTSPLY SIRONA, Inc.		228,220		13,563,115
Henry Schein, Inc.*		62,026		10,108,997
Hill-Rom Holdings, Inc.		179,618		11,132,724
ICON PLC (Ireland)*		206,490		15,976,131
Jazz Pharmaceuticals PLC (Ireland)*		109,179		13,263,065
Mettler-Toledo International, Inc.*		31,457		13,206,592
Teleflex, Inc.		94,100		15,813,505
				130,781,613
Financials — 7.2%
Affiliated Managers Group, Inc.*		73,560		10,644,131
Assurant, Inc.		107,610		9,927,022
FNF Group		295,940		10,923,145
MSCI, Inc.		143,780		12,068,893
Western Alliance Bancorp*		256,600		9,632,764
				53,195,955
Consumer Staples — 5.7%
Constellation Brands, Inc. - Class A		126,236		21,017,032
Kellogg Co.		180,570		13,988,758
Pinnacle Foods, Inc.		147,127		7,381,362
				42,387,152
Materials — 4.4%
Celanese Corp - Series A		177,230		11,796,429
Scotts Miracle-Gro Co. (The) - Class A		133,752		11,137,529
Vulcan Materials Co.		81,730		9,295,153
				32,229,111
Real Estate — 1.8%
CBRE Group, Inc. - Class A*		247,443		6,923,455
Equinix, Inc. REIT		18,727		6,746,402
				13,669,857
Energy — 1.5%
Baker Hughes, Inc.		215,690		10,885,874
Total Common Stocks			$	718,279,335
Investment Funds — 3.3%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		23,672,061		23,672,061
Invesco Government & Agency Portfolio, Institutional Class, 0.31%**∞Ω		401,200		401,200
Total Investment Funds			$	24,073,261
Total Investment Securities — 100.8%
(Cost $616,299,500)			$	742,352,596
Liabilities in Excess of Other Assets — (0.8%)				(6,119,308	)
Net Assets — 100.0%			$	736,233,288

 23

Touchstone Mid Cap Growth Fund (Unaudited) (Continued)

* Non-income producing security.

** Represents collateral for securities loaned.

† All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2016 was $394,946.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PLC - Public Limited Company

REIT - Real Estate Investment Trust

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	$	718,279,335	$	—	$	—	$	718,279,335
Investment Funds		24,073,261		—		—		24,073,261
Total	$	742,352,596	$	—	$	—	$	742,352,596

See accompanying Notes to Financial Statements.

 24

Portfolio of Investments

Touchstone Sands Capital Emerging Markets Growth Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 96.3%
India — 27.9%
Consumer Discretionary — 4.8%
Bharat Forge Ltd.		121,100	$	1,660,326
Jubilant Foodworks Ltd.		309,000		4,486,969
Zee Entertainment Enterprises Ltd.		661,400		5,444,452
Consumer Staples — 2.8%
Britannia Industries Ltd.		47,600		2,408,056
ITC Ltd.		1,165,600		4,229,798
Financials — 7.4%
Housing Development Finance Corp. Ltd.		613,600		12,870,262
Shriram Transport Finance Co. Ltd.		276,700		4,837,995
Health Care — 3.2%
Apollo Hospitals Enterprise Ltd.		192,100		3,794,186
Lupin Ltd.		169,700		3,795,783
Industrials — 7.1%
Adani Ports & Special Economic Zone Ltd.		2,118,200		8,192,988
Eicher Motors Ltd.		12,800		4,783,851
Larsen & Toubro Ltd.		192,100		4,144,090
Materials — 2.6%
Asian Paints Ltd.		361,400		6,309,170
Total India				66,957,926
Cayman Islands — 19.7%
Consumer Discretionary — 4.4%
NagaCorp Ltd.		5,508,000		3,635,577
Sands China Ltd.		1,602,400		7,023,525
Information Technology — 15.3%
Alibaba Group Holding Ltd. ADR*		171,100		18,100,669
Baidu, Inc. ADR*		63,200		11,506,824
Tencent Holdings Ltd.		255,300		7,097,860
Total Cayman Islands				47,364,455
Brazil — 5.0%
Consumer Staples — 3.3%
Raia Drogasil SA		381,100		7,834,923
Information Technology — 1.7%
Cielo SA		414,756		4,167,774
Total Brazil				12,002,697
South Korea — 5.0%
Consumer Staples — 3.2%
Amorepacific Corp.		15,100		5,354,797
LG Household & Health Care Ltd.		2,500		2,175,619
Health Care — 1.8%
Medy-Tox, Inc.		10,675		4,387,428
Total South Korea				11,917,844
China — 5.0%
Consumer Discretionary — 3.5%
ANTA Sports Products Ltd.		1,012,000		2,767,074
Ctrip.com International Ltd. ADR*		120,800		5,625,656
Health Care — 1.5%
Shandong Weigao Group Medical Polymer Co. Ltd. - Class H		5,152,000		3,475,630
Total China				11,868,360
South Africa — 4.9%
Consumer Discretionary — 4.9%
Naspers Ltd. - Class N		68,400		11,838,188
Indonesia — 4.8%
Financials — 2.6%
Bank Rakyat Indonesia Persero Tbk PT		6,801,800		6,382,387
Health Care — 2.2%
Kalbe Farma Tbk PT		21,391,900		2,818,546
Siloam International Hospitals Tbk PT*		3,027,216		2,389,114
Total Indonesia				11,590,047
United States — 3.9%
Information Technology — 3.9%
MercadoLibre, Inc.		50,650		9,368,730
Philippines — 3.8%
Consumer Staples — 1.1%
Universal Robina Corp.		752,100		2,767,883
Industrials — 1.0%
International Container Terminal Services, Inc.		1,450,700		2,309,595
Real Estate — 1.7%
SM Prime Holdings, Inc.		7,080,600		4,123,962
Total Philippines				9,201,440
Thailand — 3.5%
Consumer Staples — 2.5%
CP ALL PCL		3,338,800		5,938,708
Health Care — 1.0%
Bangkok Dusit Medical Services PCL - Class F		3,871,700		2,440,483
Total Thailand				8,379,191
United Kingdom — 2.7%
Health Care — 2.7%
Hikma Pharmaceuticals PLC		243,500		6,360,604

 25

Touchstone Sands Capital Emerging Markets Growth Fund (Unaudited) (Continued)

			Market
	Shares		Value
Common Stocks — 96.3% (Continued)
Peru — 2.4%
Financials — 2.4%
Credicorp Ltd.*		38,264	$	5,824,546
Taiwan — 1.9%
Information Technology — 1.9%
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		150,040		4,589,724
Russia — 1.7%
Consumer Staples — 1.7%
Magnit OJSC GDR		97,100		4,047,185
Turkey — 1.4%
Consumer Staples — 1.4%
BIM Birlesik Magazalar AS		203,900		3,401,237
Malaysia — 1.4%
Health Care — 1.4%
IHH Healthcare Bhd		2,176,700		3,331,764
Virgin Islands (British) — 1.3%
Information Technology — 1.3%
Mail.Ru Group Ltd. GDR*		178,600		3,132,644
Total Common Stocks			$	231,176,582

	Number
	of Contracts
Low Exercise Price Warrants — 1.9%
Saudi Arabia — 1.9%
Almarai Co. Ltd.
Strike $0.0001, Exp 3/13/17		142,833		2,009,446
Almarai Co. Ltd.
Strike $0.0001, Exp 4/08/19		173,833		2,445,570
Total Saudi Arabia				4,455,016
Total Low Exercise Price Warrants			$	4,455,016

	Shares
Investment Fund — 1.6%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		3,907,649	3,907,649

Total Investment Securities — 99.8%
(Cost $210,259,415)	$	239,539,247
Other Assets in Excess of Liabilities — 0.2%		417,289
Net Assets — 100.0%	$	239,956,536

* Non-income producing security.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ADR - American Depositary Receipt

GDR - Global Depositary Receipt

PCL - Public Company Limited

PLC - Public Limited Company

 26

Touchstone Sands Capital Emerging Markets Growth Fund (Unaudited) (Continued)

Other Information:

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

Valuation inputs at Reporting Date:

Description	Level 1		Level 2		Level 3		Total
Common Stocks
India	$	—	$	66,957,926	$	—	$	66,957,926
Cayman Islands		29,607,493		17,756,962		—		47,364,455
Brazil		12,002,697		—		—		12,002,697
South Korea		—		11,917,844		—		11,917,844
China		5,625,656		6,242,704		—		11,868,360
South Africa		—		11,838,188		—		11,838,188
Indonesia		2,389,114		9,200,933		—		11,590,047
United States		9,368,730		—		—		9,368,730
Philippines		—		9,201,440		—		9,201,440
Thailand		—		8,379,191		—		8,379,191
United Kingdom		—		6,360,604		—		6,360,604
Peru		5,824,546		—		—		5,824,546
Taiwan		4,589,724		—		—		4,589,724
Russia		—		4,047,185		—		4,047,185
Turkey		—		3,401,237		—		3,401,237
Malaysia		3,331,764		—		—		3,331,764
Virgin Islands (British)		3,132,644		—		—		3,132,644
Low Exercise Price
Warrants Saudi Arabia		—		4,455,016		—		4,455,016
Investment Fund		3,907,649		—		—		3,907,649
Total	$	79,780,017	$	159,759,230	$	—	$	239,539,247

See accompanying Notes to Financial Statements.

 27

Portfolio of Investments

Touchstone Small Cap Growth Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 95.6%
Information Technology — 24.2%
Arris International PLC*		198,494	$	5,623,335
BroadSoft, Inc.*		140,771		6,552,890
Ciena Corp.*		266,817		5,816,611
Cirrus Logic, Inc.*		167,231		8,888,328
comScore, Inc.*		133,425		4,090,811
Criteo SA ADR*		75,152		2,638,587
Euronet Worldwide, Inc.*		165,948		13,579,525
ExlService Holdings, Inc.*		114,911		5,727,164
Gigamon, Inc.*		92,423		5,064,780
j2 Global, Inc.		54,468		3,628,113
Manhattan Associates, Inc.*		108,689		6,262,660
MAXIMUS, Inc.		124,380		7,034,933
Mellanox Technologies Ltd. (Israel)*		140,939		6,095,612
Power Integrations, Inc.		103,624		6,531,421
Qualys, Inc.*		112,512		4,296,833
Science Applications International Corp.		95,020		6,591,537
Shutterstock, Inc.*†		78,224		4,982,869
Synaptics, Inc.*		60,266		3,530,382
Tessera Technologies, Inc.		107,664		4,138,604
Travelport Worldwide Ltd. (Bermuda)		267,108		4,014,633
				115,089,628
Health Care — 22.0%
ABIOMED, Inc.*		31,108		3,999,867
ACADIA Pharmaceuticals, Inc.*†		86,876		2,763,526
Agios Pharmaceuticals, Inc.*†		30,222		1,596,326
Akorn, Inc.*		223,209		6,084,677
Alder Biopharmaceuticals, Inc.*†		90,924		2,979,579
AMN Healthcare Services, Inc.*		195,790		6,239,827
ANI Pharmaceuticals, Inc.*†		85,144		5,649,304
Cambrex Corp.*		190,543		8,471,542
Charles River Laboratories International, Inc.*		76,569		6,381,260
Chemed Corp.		57,536		8,116,604
China Biologic Products, Inc.*		32,369		4,029,293
Globus Medical, Inc. - Class A*		131,307		2,963,599
Horizon Pharma PLC*		277,345		5,028,265
ICON PLC (Ireland)*		108,989		8,432,479
Insulet Corp.*		88,660		3,629,740
Medidata Solutions, Inc.*		132,825		7,406,322
Momenta Pharmaceuticals, Inc.*		298,108		3,484,883
Natus Medical, Inc.*		166,696		6,549,486
Ophthotech Corp.*		90,924		4,194,324
Prestige Brands Holdings, Inc.*		85,548		4,129,402
Radius Health, Inc.*†		39,654		2,144,885
				104,275,190
Consumer Discretionary — 18.1%
Big Lots, Inc.		111,313		5,315,196
Burlington Stores, Inc.*		123,831		10,032,788
Columbia Sportswear Co.		48,632		2,759,380
Cooper Tire & Rubber Co.		165,043		6,274,935
Core-Mark Holding Co., Inc.		122,590		4,388,722
Cracker Barrel Old Country Store, Inc.†		45,649		6,035,711
Dave & Buster's Entertainment, Inc.*		123,555		4,840,885
DineEquity, Inc.		62,864		4,978,200
G-III Apparel Group Ltd.*		149,391		4,354,748
Imax Corp. (Canada)*		146,318		4,238,832
La-Z-Boy, Inc.		239,768		5,888,702
Lithia Motors, Inc. - Class A		77,063		7,361,058
Marriott Vacations Worldwide Corp.		87,014		6,379,866
Ruth's Hospitality Group, Inc.		197,883		2,794,108
Skechers U.S.A., Inc. - Class A*		270,630		6,197,427
Sportsman's Warehouse Holdings, Inc.*†		393,754		4,142,292
				85,982,850
Industrials — 12.8%
AECOM*		173,279		5,151,585
Argan, Inc.		79,607		4,711,938
AZZ, Inc.		112,500		7,342,875
Beacon Roofing Supply, Inc.*		99,258		4,175,784
Dycom Industries, Inc.*		71,003		5,806,625
EMCOR Group, Inc.		80,095		4,775,264
Hexcel Corp.		126,070		5,584,901
Insperity, Inc.		70,779		5,141,387
Proto Labs, Inc.*†		73,069		4,377,564
Trex Co., Inc.*		123,809		7,270,064
WageWorks, Inc.*		101,418		6,177,370
				60,515,357
Financials — 7.4%
Bank of The Ozarks, Inc.		117,861		4,525,862
BofI Holding, Inc.*†		220,512		4,939,469
Financial Engines, Inc.†		134,678		4,001,283
Interactive Brokers Group, Inc. - Class A		157,344		5,549,523
Janus Capital Group, Inc.		374,393		5,245,246
PRA Group, Inc.*		133,671		4,616,996
Western Alliance Bancorp*		171,579		6,441,076
				35,319,455
Consumer Staples — 5.3%
B&G Foods, Inc.		139,065		6,839,217
Boston Beer Co., Inc. (The) - Class A*		28,908		4,488,256
Cal-Maine Foods, Inc.†		115,089		4,435,530
Central Garden & Pet Co.*		125,794		3,270,644
J&J Snack Foods Corp.		52,897		6,301,091
				25,334,738
Energy — 3.9%
Carrizo Oil & Gas, Inc.*		145,747		5,920,243
Matador Resources Co.*		160,187		3,898,952
Matrix Service Co.*		201,636		3,782,691
Superior Energy Services, Inc.		270,468		4,841,377
				18,443,263
Materials — 1.2%
Silgan Holdings, Inc.		111,330		5,632,185
Real Estate — 0.7%
HFF, Inc. - Class A		116,418		3,223,614
Total Common Stocks			$	453,816,280

 28

Touchstone Small Cap Growth Fund (Unaudited) (Continued)

			Market
	Shares		Value
Investment Funds — 12.7%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		26,106,852	$	26,106,852
Invesco Government & Agency Portfolio, Institutional Class, 0.31%**∞Ω		34,163,476		34,163,476
Total Investment Funds			$	60,270,328
Total Investment Securities — 108.3%
(Cost $512,585,441)			$	514,086,608
Liabilities in Excess of Other Assets — (8.3%)				(39,215,729	)
Net Assets — 100.0%			$	474,870,879

* Non-income producing security.

** Represents collateral for securities loaned.

† All or a portion of the security is on loan. The total market value of the securities on loan as of September 30, 2016 was $33,465,503.

^∞ Open-End Fund.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PLC - Public Limited Company

OtherInformation:

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	$	453,816,280	$	—	$	—	$	453,816,280
Investment Funds		60,270,328		—		—		60,270,328
Total	$	514,086,608	$	—	$	—	$	514,086,608

See accompanying Notes to Financial Statements.

 29

Portfolio of Investments

Touchstone Sustainability and Impact Equity Fund – September 30, 2016 (Unaudited)

			Market
	Shares		Value
Common Stocks — 97.5%
United States — 51.0%
Consumer Discretionary — 4.4%
Amazon.com, Inc.*		6,716	$	5,623,374
Ford Motor Co.		264,610		3,193,843
NIKE, Inc. - Class B		72,330		3,808,174
Consumer Staples — 2.7%
CVS Health Corp.		87,246		7,764,022
Energy — 4.7%
Apache Corp.		83,640		5,342,087
ConocoPhillips		136,473		5,932,481
Noble Energy, Inc.		58,170		2,078,996
Financials — 10.6%
Aflac, Inc.		38,284		2,751,471
Annaly Capital Management, Inc. REIT		360,034		3,780,357
Discover Financial Services		61,960		3,503,838
JPMorgan Chase & Co.		117,266		7,808,743
Reinsurance Group of America, Inc.		69,774		7,531,406
Wells Fargo & Co.		109,802		4,862,033
Health Care — 8.1%
Abbott Laboratories		65,341		2,763,269
Becton Dickinson and Co.		27,997		5,031,901
Biogen, Inc.*		9,663		3,024,809
Cerner Corp.*		60,270		3,721,672
Illumina, Inc.*		14,273		2,592,833
Regeneron Pharmaceuticals, Inc.*		4,433		1,782,155
St Jude Medical, Inc.		33,835		2,698,680
Ultragenyx Pharmaceutical, Inc.*		22,804		1,617,716
Industrials — 5.6%
Roper Technologies, Inc.		23,203		4,233,851
Southwest Airlines Co.		202,675		7,882,031
United Continental Holdings, Inc.*		73,064		3,833,668
Information Technology — 10.7%
Alphabet, Inc. - Class A*		11,505		9,250,710
Microsoft Corp.		152,867		8,805,139
Oracle Corp.		123,931		4,868,010
Visa, Inc. - Class A		91,009		7,526,444
Telecommunication Services — 1.5%
SBA Communications Corp. - Class A*		39,498		4,430,096
Utilities — 2.7%
American Water Works Co., Inc.		101,860		7,623,202
Total United States				145,667,011
Japan — 12.9%
Consumer Discretionary — 0.9%
NGK Spark Plug Co. Ltd.		140,200		2,477,381
Financials — 0.7%
Orix Corp.		139,600		2,059,471
Industrials — 5.2%
Amada Holdings Co. Ltd.		308,200		3,205,990
Kinden Corp.		483,400		5,572,894
Nabtesco Corp.*		102,900		2,915,221
SMC Corp.		10,800		3,118,314
Information Technology — 2.0%
Kyocera Corp.*		117,000		5,622,233
Telecommunication Services — 2.9%
Nippon Telegraph & Telephone Corp.		178,600		8,168,448
Utilities — 1.2%
Tokyo Gas Co. Ltd.		805,000		3,581,461
Total Japan				36,721,413
United Kingdom — 11.4%
Consumer Discretionary — 5.7%
Berkeley Group Holdings PLC		79,435		2,654,206
Compass Group PLC		297,624		5,763,950
Delphi Automotive PLC		77,020		5,493,066
InterContinental Hotels Group		59,629		2,457,601
Consumer Staples — 1.1%
Unilever PLC ADR		65,874		3,122,428
Financials — 1.7%
Prudential PLC		276,003		4,892,585
Industrials — 2.9%
Intertek Group PLC		54,635		2,466,422
Pentair PLC		88,276		5,670,850
Total United Kingdom				32,521,108
Ireland — 3.5%
Health Care — 3.5%
Mallinckrodt PLC*		55,936		3,903,214
Shire PLC ADR		31,380		6,083,327
Total Ireland				9,986,541
Netherlands — 3.3%
Financials — 3.3%
ABN AMRO Group N.V.		130,824		2,704,954
ING Groep N.V.		540,144		6,668,446
Total Netherlands				9,373,400
Germany — 3.3%
Consumer Discretionary — 0.5%
Bayerische Motoren Werke AG		17,592		1,481,171
Materials — 2.8%
HeidelbergCement AG		83,184		7,866,907
Total Germany				9,348,078

 30

Touchstone Sustainability and Impact Equity Fund (Unaudited) (Continued)

			Market
	Shares		Value
Common Stocks — 97.5% (Continued)
China — 2.9%
Information Technology — 2.9%
Baidu, Inc. ADR*		19,158	$	3,488,097
Tencent Holdings Ltd.		172,200		4,787,511
Total China				8,275,608
Sweden — 2.7%
Financials — 1.6%
Swedbank AB - Class A		197,400		4,638,231
Industrials — 1.1%
Atlas Copco AB - Class A		105,363		3,171,904
Total Sweden				7,810,135
Switzerland — 2.4%
Health Care — 2.4%
Novartis AG		89,016		7,025,172
France — 2.1%
Industrials — 2.1%
Cie de Saint-Gobain		92,096		3,985,017
Schneider Electric SE		28,470		1,980,494
Total France				5,965,511
Italy — 0.9%
Consumer Discretionary — 0.9%
Luxottica Group SPA		56,471		2,697,247
Indonesia — 0.7%
Financials — 0.7%
Bank Rakyat Indonesia Persero Tbk PT		2,123,600		1,992,655
South Korea — 0.4%
Telecommunication Services — 0.4%
KT Corp. ADR		67,504		1,083,439
Total Common Stocks				278,467,318
Investment Fund — 3.4%
Dreyfus Government Cash Management, Institutional Shares, 0.30%∞Ω		9,580,747		9,580,747
Total Investment Securities —100.9%
(Cost $279,463,585)			$	288,048,065
Liabilities in Excess of Other Assets — (0.9%)				(2,526,488	)
Net Assets — 100.0%			$	285,521,577

* Non-income producing security.

^Ω Represents the 7-day SEC yield as of September 30, 2016.

^∞ Open-End Fund.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PLC - Public Limited Company

REIT - Real Estate Investment Trust

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
United States	$	145,667,011	$	—	$	—	$	145,667,011
Japan		—		36,721,413		—		36,721,413
United Kingdom		14,286,344		18,234,764		—		32,521,108
Ireland		9,986,541		—		—		9,986,541
Netherlands		6,668,446		2,704,954		—		9,373,400
Germany		—		9,348,078		—		9,348,078
China		3,488,097		4,787,511		—		8,275,608
Sweden		—		7,810,135		—		7,810,135
Switzerland		—		7,025,172		—		7,025,172
France		—		5,965,511		—		5,965,511
Italy		—		2,697,247		—		2,697,247
Indonesia		—		1,992,655		—		1,992,655
South Korea		1,083,439		—		—		1,083,439
Investment Fund		9,580,747		—		—		9,580,747
Total	$	190,760,625	$	97,287,440	$	—	$	288,048,065

At September 30, 2016, equity securities valued at $2,704,954 were transferred from Level 1 to Level 2. Transfers from Level 1 to Level 2 are due to movements of a designated U.S. market index, triggering a systematic valuation model, provided by an independent third party, when required confidence levels are achieved to fair value the international equity securities.

See accompanying Notes to Financial Statements.

 31

Statements of Assets and Liabilities

September 30, 2016(Unaudited)

	Touchstone					Touchstone			Touchstone
	Flexible			Touchstone		Growth			International
	Income			Focused		Opportunities			Growth
	Fund			Fund		Fund			Fund
Assets
Investments, at cost	$	716,848,367		$	1,204,314,751	$	255,321,778		$	11,166,508
Investments, at market value (A)	$	733,344,499		$	1,438,976,060	$	289,612,339		$	11,373,814
Cash deposits held at prime broker*		1,283,489			—		—			—
Foreign Currency (B)		7,125			—		—			—
Unrealized appreciation on forward foreign currency contracts		244,845			—		—			—
Dividends and interest receivable		5,562,217			1,174,992		97,586			12,365
Receivable for capital shares sold		3,280,916			1,771,862		195,710			—
Receivable for investments sold		5,379,960			4,188,111		1,132,953			119,952
Receivable for securities lending income		7,989			48		429			165
Receivable from Investment Advisor		—			—		—			2,505
Tax reclaim receivable		19,613			144,903		1,896			1,498
Other assets		80,475			50,141		32,896			1,890
Total Assets		749,211,128			1,446,306,117		291,073,809			11,512,189
Liabilities
Dividends and interest on securities sold short payable		1,689			—		—			—
Payable for collateral on securities sold short		225,585			—		—			—
Unrealized depreciation on forward foreign currency contracts		243,902			—		—			—
Payable for return of collateral for securities on loan		15,164,763			—		2,567,319			426,781
Deferred foreign capital gains tax(C)		—			—		—			—
Payable for capital shares redeemed		1,032,095			1,905,028		129,055			5,856
Payable for variation margin for futures contracts		165,244			—		—			—
Payable for investments purchased		12,372,802			3,026,390		1,428,282			66,765
Payable to Investment Advisor		375,478			732,733		161,944			—
Payable to other affiliates		73,319			266,752		33,486			223
Payable to Trustees		3,948			3,948		3,948			3,949
Payable for custody		—			691		116			—
Payable for pricing services		10,676			759		1,036			875
Payable for professional services		30,467			43,912		18,014			18,387
Payable for reports to shareholders		3,324			26,055		15,552			12,413
Payable to Transfer Agent		126,888			517,310		63,115			1,382
Other accrued expenses and liabilities		3,719			1,520		2,418			84
Total Liabilities		29,833,899			6,525,098		4,424,285			536,715
Net Assets	$	719,377,229		$	1,439,781,019	$	286,649,524		$	10,975,474
Net assets consist of:
Paid-in capital	$	711,317,747		$	1,170,916,964	$	261,111,120		$	10,811,010
Accumulated net investment income (loss)		160,011			10,448,695		6,898			38,840
Accumulated net realized gains (losses) on investments, futures contracts, written options, swap agreements, securities sold short and foreign currency transactions		(8,426,914	)		23,754,051		(8,759,055	)		(81,682	)
Net unrealized appreciation (depreciation) on investments, futures contracts and foreign currency transactions		16,326,385			234,661,309		34,290,561			207,306
Net Assets	$	719,377,229		$	1,439,781,019	$	286,649,524		$	10,975,474
(A) Includes market value of securities on loan of:	$	14,518,752		$	—	$	2,508,072		$	417,894
(B) Cost of foreign currency:	$	7,236		$	—	$	—		$	—

^(C) See Note 2 in Notes to Financial Statements.

* Represents segregated cash for futures contracts.

See accompanying Notes to Financial Statements.

 32

Statements of Assets and Liabilities (Unaudited) (Continued)

						Touchstone
Touchstone			Touchstone			Sands Capital						Touchstone
International			Mid Cap			Emerging			Touchstone			Sustainability
Value			Growth			Markets			Small Cap			and Impact
Fund			Fund			Growth Fund			Growth Fund			Equity Fund
$	29,745,829		$	616,299,500		$	210,259,415		$	512,585,441		$	279,463,585
$	24,938,592		$	742,352,596		$	239,539,247		$	514,086,608		$	288,048,065
	—			—			—			—			—
	—			—			388			—			—
	—			—			—			—			—
	85,389			119,108			115,107			168,168			539,003
	566			1,277,596			783,468			1,247,573			675,695
	129,699			—			1,215,124			—			2,906,362
	—			5,779			—			59,533			10
	—			—			—			—			—
	138,184			—			1,156			1,156			84,859
	16,301			47,670			21,237			57,845			39,748
	25,308,731			743,802,749			241,675,727			515,620,883			292,293,742
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	—			401,200			—			34,163,476			—
	—			—			1,052,322			—			—
	21,457			1,564,297			135,528			1,181,362			437,167
	—			—			—			—			—
	21,740			4,649,041			229,340			4,871,237			5,911,601
	6,786			442,616			222,907			349,457			164,190
	223			235,489			28,679			28,239			79,759
	3,948			3,948			3,948			3,948			3,948
	4,661			—			—			—			3,621
	8,632			1,078			3,579			1,590			9,106
	10,956			29,527			24,339			22,595			26,365
	20,330			31,732			2,310			—			29,268
	8,492			208,100			13,978			125,678			102,700
	2,567			2,433			2,261			2,422			4,440
	109,792			7,569,461			1,719,191			40,750,004			6,772,165
$	25,198,939		$	736,233,288		$	239,956,536		$	474,870,879		$	285,521,577
$	153,083,951		$	595,888,236		$	226,768,911		$	478,612,469		$	286,455,104
	2,851,764			(663,217	)		(136,925	)		(2,265,866	)		1,829,735
	(125,922,908	)		14,955,173			(14,905,105	)		(2,976,891	)		(11,343,379	)
	(4,813,868	)		126,053,096			28,229,655			1,501,167			8,580,117
$	25,198,939		$	736,233,288		$	239,956,536		$	474,870,879		$	285,521,577
$	—		$	394,946		$	—		$	33,465,503		$	—
$	—		$	—		$	378		$	—		$	—

 33

Statements of Assets and Liabilities (Unaudited) (Continued)

	Touchstone						Touchstone			Touchstone
	Flexible			Touchstone			Growth			International
	Income			Focused			Opportunities			Growth
	Fund			Fund			Fund			Fund
Pricing of Class A Shares
Net assets applicable to Class A shares	$	66,034,489		$	416,613,765		$	37,590,065		$	2,588
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		6,068,706			10,748,238			1,316,144			250
Net asset value price per share*	$	10.88		$	38.76		$	28.56		$	10.35
Maximum sales charge - Class A shares		5.75	%		5.75	%		5.75	%		5.75	%
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) - Class A shares	$	11.54		$	41.12		$	30.30		$	10.98
Pricing of Class B Shares
Net assets applicable to Class B shares	$	—		$	—		$	—		$	—
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		—			—			—			—
Net asset value and offering price per share**	$	—		$	—		$	—		$	—
Pricing of Class C Shares
Net assets applicable to Class C shares	$	59,774,876		$	55,279,656		$	9,805,739		$	2,578
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		5,566,467			1,477,157			400,924			250
Net asset value and offering price per share**	$	10.74		$	37.42		$	24.46		$	10.31
Pricing of Class Y Shares
Net assets applicable to Class Y shares	$	504,208,870		$	917,202,673		$	57,849,265		$	2,590
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		46,203,238			23,239,349			1,983,305			250
Net asset value, offering price and redemption price per share	$	10.91		$	39.47		$	29.17		$	10.36
Pricing of Institutional Class Shares
Net assets applicable to Institutional Class Shares	$	89,358,994		$	50,684,925		$	181,404,455		$	10,967,718
Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)		8,190,603			1,278,332			6,159,997			1,058,392
Net asset value, offering price and redemption price per share	$	10.91		$	39.65		$	29.45		$	10.36

* 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 if redeemed within a one-year period from the date of purchase.

** Redemption price per share varies by length of time shares are held due to the terms of the contingent deferred sales charge.

See accompanying Notes to Financial Statements.

 34

Statements of Assets and Liabilities (Unaudited) (Continued)

						Touchstone
Touchstone			Touchstone			Sands Capital					Touchstone
International			Mid Cap			Emerging		Touchstone			Sustainability
Value			Growth			Markets		Small Cap			and Impact
Fund			Fund			Growth Fund		Growth Fund			Equity Fund
$	3,549,129		$	229,000,345		$	—	$	42,560,902		$	123,490,879
	475,921			9,274,283			—		8,295,790			6,139,452
$	7.46		$	24.69		$	—	$	5.13		$	20.11
	5.75	%		5.75	%		—		5.75	%		5.75	%
$	7.92		$	26.20		$	—	$	5.44		$	21.34
$	—		$	535,790		$	—	$	—		$	151,096
	—			30,170			—		—			8,498
$	—		$	17.76		$	—	$	—		$	17.78
$	100,320		$	122,060,843		$	—	$	15,597,645		$	53,520,576
	14,570			7,074,979			—		3,673,093			3,078,149
$	6.89		$	17.25		$	—	$	4.25		$	17.39
$	4,218,689		$	343,423,785		$	95,761,906	$	393,563,260		$	93,177,160
	563,366			13,521,616			9,153,515		68,795,179			4,505,097
$	7.49		$	25.40		$	10.46	$	5.72		$	20.68
$	17,330,801		$	41,212,525		$	144,194,630	$	23,149,072		$	15,181,866
	2,323,346			1,611,608			13,758,546		4,017,259			733,371
$	7.46		$	25.57		$	10.48	$	5.76		$	20.70

 35

Statements of Operations

For the Six Months Ended September 30, 2016 (Unaudited)

	Touchstone						Touchstone			Touchstone
	Flexible			Touchstone			Growth			International
	Income			Focused			Opportunities			Growth
	Fund			Fund			Fund			Fund(B)
Investment Income
Dividends(A)	$	2,422,990		$	10,607,556		$	1,470,362		$	80,382
Interest		9,183,058			—			—			—
Income from securities loaned		48,620			14,315			33,336			780
Total Investment Income		11,654,668			10,621,871			1,503,698			81,162
Expenses
Investment advisory fees		2,185,289			4,412,722			1,122,902			39,249
Administration fees		467,529			1,030,058			217,094			6,323
Compliance fees and expenses		1,432			1,432			1,432			1,432
Custody fees		36,994			10,655			7,006			1,756
Professional fees		31,790			40,315			17,156			25,534
Transfer Agent fees, Class A		36,384			411,843			28,846			134
Transfer Agent fees, Class B		—			—			—			—
Transfer Agent fees, Class C		19,616			20,358			7,228			134
Transfer Agent fees, Class Y		241,025			426,550			45,177			134
Transfer Agent fees, Institutional Class		4,994			7,676			36,375			699
Pricing Expense		13,780			906			1,235			1,110
Registration fees, Class A		9,989			16,234			7,280			1,504
Registration fees, Class B		—			—			—			—
Registration fees, Class C		8,190			9,921			6,642			1,504
Registration fees, Class Y		19,442			15,848			7,980			1,504
Registration fees, Institutional Class		10,028			6,905			11,005			1,755
Dividend expense on securities sold short		35,264			—			—			—
Interest expense on securities sold short		7,420			—			—			—
Reports to Shareholders, Class A		5,225			19,967			5,508			3,406
Reports to Shareholders, Class B		—			—			—			—
Reports to Shareholders, Class C		4,635			4,054			3,974			3,406
Reports to Shareholders, Class Y		6,583			31,095			4,078			3,406
Reports to Shareholders, Institutional Class		3,513			3,498			4,067			3,451
Distribution expenses, Class A		77,380			523,498			47,474			3
Distribution expenses, Class B		—			—			—			—
Distribution and shareholder servicing expenses, Class C		262,803			255,503			55,705			12
Trustee fees		8,038			8,038			8,038			8,038
Other expenses		30,954			336,756			23,451			3,451
Total Expenses		3,528,297			7,593,832			1,669,653			107,945
Fees waived and/or reimbursed by the Advisor and/or Affiliates(C)		(480,524	)		(196,868	)		(172,853	)		(65,623	)
Net Expenses		3,047,773			7,396,964			1,496,800			42,322
Net Investment Income (Loss)		8,606,895			3,224,907			6,898			38,840
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investments		7,076,216			11,308,512			5,032,661			(81,682	)
Net realized losses on futures contracts		(486,370	)		—			—			—
Net realized gains on written options		454,017			—			—			—
Net realized losses on swap agreements		(328,465	)		—			—			—
Net realized gains (losses) on foreign currency transactions		(3,601,777	)		—			—			—
Net realized losses on securities sold short		(184,590	)		—			—			—
Net change in unrealized appreciation (depreciation) on investments (D)		13,117,647			64,724,827			8,236,202			207,306
Net change in unrealized appreciation (depreciation) on futures contracts		(166,637	)		—			—			—
Net change in unrealized appreciation (depreciation) on foreign currency transactions		1,589,384			—			—			—
Net Realized and Unrealized Gains (Losses) on Investments		17,469,425			76,033,339			13,268,863			125,624
Change in Net Assets Resulting from Operations	$	26,076,320		$	79,258,246		$	13,275,761		$	164,464
(A) Net of foreign tax withholding of:	$	4,881		$	73,793		$	11,523		$	10,420
(B) Represents the period from commencement of operations (April 1, 2016) through September 30, 2016.
(C)See Note 4 in Notes to Financial Statements.
(D) Includes change in deferred foreign capital gains tax of:	$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

 36

Statements of Operations (Unaudited) (Continued)

						Touchstone
Touchstone			Touchstone			Sands Capital						Touchstone
International			Mid Cap			Emerging			Touchstone			Sustainability
Value			Growth			Markets			Small Cap			and Impact
Fund			Fund			Growth Fund			Growth Fund			Equity Fund
$	788,613		$	3,917,559		$	1,389,769		$	1,428,753		$	3,610,421
	—			—			—			—			—
	11,036			83,109			3,746			274,699			30,404
	799,649			4,000,668			1,393,515			1,703,452			3,640,825
	165,731			2,764,659			1,099,024			2,589,964			1,022,076
	24,031			546,715			138,573			383,832			201,330
	1,432			1,432			1,432			1,432			1,432
	12,862			10,623			35,443			8,833			13,249
	18,096			27,302			26,289			22,223			24,829
	5,762			153,574			—			36,075			98,197
	—			2,021			—			—			668
	233			85,560			—			13,945			36,717
	4,264			221,501			26,948			316,548			43,991
	46			7,050			14,330			619			1,197
	10,029			1,340			4,196			1,881			8,047
	3,992			8,981			—			9,492			8,584
	—			5,597			—			—			5,965
	2,646			8,474			—			9,051			8,184
	2,368			18,192			10,185			53,691			11,031
	2,086			10,867			9,823			2,433			4,727
	—			—			—			—			—
	—			—			—			—			—
	3,895			14,373			—			6,643			11,893
	—			3,530			—			—			3,447
	3,366			11,713			—			5,419			6,580
	3,390			22,269			4,655			31,141			7,688
	6,491			3,573			4,188			4,759			3,433
	4,501			281,475			—			58,279			165,975
	—			1,375			—			—			468
	553			625,449			—			86,357			273,578
	8,038			8,038			8,038			8,038			8,038
	8,513			50,078			5,540			19,278			52,842
	292,325			4,895,761			1,388,664			3,669,933			2,024,166
	(119,093	)		(7,525	)		(26,257	)		(395,749	)		(213,076	)
	173,232			4,888,236			1,362,407			3,274,184			1,811,090
	626,417			(887,568	)		31,108			(1,570,732	)		1,829,735
	(2,962,579	)		41,685,303			(3,111,549	)		(4,043,020	)		3,246,872
	—			—			—			—			—
	—			—			—			—			—
	—			—			—			—			—
	(10,429	)		—			(108,695	)		—			68,507
	—			—			—			—			—
	2,591,999			3,441,228			24,059,041			21,166,284			11,150,036
	—			—			—			—			—
	(2,121	)		—			5,513			—			(8,863	)
	(383,130	)		45,126,531			20,844,310			17,123,264			14,456,552
$	243,287		$	44,238,963		$	20,875,418		$	15,552,532		$	16,286,287
$	76,143		$	11,351		$	92,082		$	494		$	202,966
$	—		$	—		$	1,052,322		$	—		$	—

 37

Statements of Changes in Net Assets

	Touchstone
	Flexible Income
	Fund
	For the
	Six Months
	Ended
	September 30,			For the
	2016			Year Ended
	(Unaudited)			March 31, 2016
From Operations
Net investment income (loss)	$	8,606,895		$	13,151,783
Net realized gains (losses) on investments, futures contracts, written options, swap agreements, securities sold short and foreign currency transactions		2,929,031			(761,915	)
Net change in unrealized appreciation (depreciation) on investments, futures contracts and foreign currency transactions		14,540,394			(1,909,557	)
Change in Net Assets from Operations		26,076,320			10,480,311
Distributions to Shareholders from:
Net investment income, Class A		(796,550	)		(1,150,620	)
Net investment income, Class C		(504,061	)		(745,990	)
Net investment income, Class Y		(6,355,611	)		(8,778,715	)
Net investment income, Institutional Class		(1,278,434	)		(1,541,524	)
Net realized gains, Class A		—			—
Net realized gains, Class C		—			—
Net realized gains, Class Y		—			—
Net realized gains, Institutional Class		—			—
Total Distributions		(8,934,656	)		(12,216,849	)
Net Increase (Decrease) from Share Transactions (A)		158,776,049			203,835,986
Total Increase (Decrease) in Net Assets		175,917,713			202,099,448
Net Assets
Beginning of period		543,459,516			341,360,068
End of period	$	719,377,229		$	543,459,516
Accumulated Net Investment Income	$	160,011		$	487,772

^(A) For details on share transaction by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 42 to 44.

^(B) Represents the period from commencement of operations (April 1, 2016) through September 30, 2016.

See accompanying Notes to Financial Statements.

 38

Statements of Changes in Net Assets (Continued)

					Touchstone						Touchstone			Touchstone
Touchstone					Growth Opportunities						International			International
Focused Fund					Fund						Growth Fund			Value Fund
For the					For the						For the			For the
Six Months					Six Months						Six Months			Six Months
Ended					Ended						Ended			Ended
September 30,		For the			September 30,			For the			September 30,			September 30,			For the
2016		Year Ended			2016			Year Ended			2016(B)			2016			Year Ended
(Unaudited)		March 31, 2016			(Unaudited)			March 31, 2016			(Unaudited)			(Unaudited)			March 31, 2016
$	3,224,907	$	7,223,804		$	6,898		$	(68,620	)	$	38,840		$	626,417		$	2,138,797
	11,308,512		12,445,754			5,032,661			13,188,606			(81,682	)		(2,973,008	)		(3,988,868	)
	64,724,827		3,867,659			8,236,202			(38,294,449	)		207,306			2,589,878			(12,129,283	)
	79,258,246		23,537,217			13,275,761			(25,174,463	)		164,464			243,287			(13,979,354	)
	—		(2,150,136	)		—			—			—			—			(105,908	)
	—		(177,711	)		—			—			—			—			(2,309	)
	—		(5,719,362	)		—			—			—			—			(141,641	)
	—		(387,665	)		—			—			—			—			(3,515,661	)
	—		(8,694,608	)		—			(4,005,557	)		—			—			—
	—		(615,987	)		—			(1,368,829	)		—			—			—
	—		(17,448,933	)		—			(8,848,646	)		—			—			—
	—		(1,032,227	)		—			(11,326,115	)		—			—			—
	—		(36,226,629	)		—			(25,549,147	)		—			—			(3,765,519	)
	8,022,145		250,157,293			(36,500,474	)		55,533,470			10,811,010			(18,190,965	)		(52,336,712	)
	87,280,391		237,467,881			(23,224,713	)		4,809,860			10,975,474			(17,947,678	)		(70,081,585	)
	1,352,500,628		1,115,032,747			309,874,237			305,064,377			—			43,146,617			113,228,202
$	1,439,781,019	$	1,352,500,628		$	286,649,524		$	309,874,237		$	10,975,474		$	25,198,939		$	43,146,617
$	10,448,695	$	7,223,788		$	6,898		$	—		$	38,840		$	2,851,764		$	2,225,347

 39

Statements of Changes in Net Assets (Continued)

	Touchstone
	Mid Cap
	Growth Fund
	For the
	Six Months
	Ended
	September 30,			For the
	2016			Year Ended
	(Unaudited)			March 31, 2016
From Operations
Net investment income (loss)	$	(887,568	)	$	(3,237,176	)
Net realized gains (losses) on investments and foreign currency transactions		41,685,303			14,147,440
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions		3,441,228			(67,538,238	)
Change in Net Assets from Operations		44,238,963			(56,627,974	)
Distributions to Shareholders from:
Net investment income, Class A		—			—
Net investment income, Class Y		—			(610,615	)
Net investment income, Institutional Class		—			(189,405	)
Net realized gains, Class A		—			(19,006,999	)
Net realized gains, Class B		—			(157,363	)
Net realized gains, Class C		—			(15,562,432	)
Net realized gains, Class Y		—			(27,767,750	)
Net realized gains, Institutional Class		—			(6,878,222	)
Total Distributions		—			(70,172,786	)
Net Increase (Decrease) from Share Transactions(A)		(95,057,130	)		84,655,180
Total Increase (Decrease) in Net Assets		(50,818,167	)		(42,145,580	)
Net Assets
Beginning of period		787,051,455			829,197,035
End of period	$	736,233,288		$	787,051,455
Accumulated Net Investment Income (Loss)	$	(663,217	)	$	224,351

^(A) For details on share transaction by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 44 to 46.

See accompanying Notes to Financial Statements.

 40

Statements of Changes in Net Assets (Continued)

Touchstone						Touchstone						Touchstone
Sands Capital Emerging						Small Cap						Sustainability and Impact
Markets Growth Fund						Growth Fund						Equity Fund
For the						For the						For the
Six Months						Six Months						Six Months
Ended						Ended						Ended
September 30,			For the			September 30,			For the			September 30,		For the
2016			Year Ended			2016			Year Ended			2016		Year Ended
(Unaudited)			March 31, 2016			(Unaudited)			March 31, 2016			(Unaudited)		March 31, 2016
$	31,108		$	(453,786	)	$	(1,570,732	)	$	(3,503,797	)	$	1,829,735	$	857,385
	(3,220,244	)		(4,556,734	)		(4,043,020	)		2,826,756			3,315,379		185,477,079
	24,064,554			(742,942	)		21,166,284			(54,037,671	)		11,141,173		(219,009,602	)
	20,875,418			(5,753,462	)		15,552,532			(54,714,712	)		16,286,287		(32,675,138	)
	—			—			—			—			—		(227,036	)
	—			—			—			—			—		(333,095	)
	—			—			—			—			—		(4	)
	—			—			—			(416,539	)		—		(71,291,821	)
	—			—			—			—			—		(566,514	)
	—			—			—			(247,389	)		—		(32,073,111	)
	—			—			—			(3,876,576	)		—		(66,294,607	)
	—			—			—			(229,599	)		—		(797	)
	—			—			—			(4,770,103	)		—		(170,786,985	)
	59,574,379			92,975,954			(138,881,190	)		284,669,125			556,941		(307,457,200	)
	80,449,797			87,222,492			(123,328,658	)		225,184,310			16,843,228		(510,919,323	)
	159,506,739			72,284,247			598,199,537			373,015,227			268,678,349		779,597,672
$	239,956,536		$	159,506,739		$	474,870,879		$	598,199,537		$	285,521,577	$	268,678,349
$	(136,925	)	$	(168,033	)	$	(2,265,866	)	$	(695,134	)	$	1,829,735	$	—

 41

Statements of Changes in Net Assets - Capital Stock Activity

	Touchstone												Touchstone
	Flexible Income Fund												Focused Fund
	For the Six Months												For the Six Months
	Ended						For the Year						Ended						For the Year
	September 30, 2016						Ended						September 30, 2016						Ended
	(Unaudited)						March 31, 2016						(Unaudited)						March 31, 2016
	Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		2,427,719		$	26,204,920			4,144,466		$	43,577,789			1,238,157		$	46,780,552			4,522,535		$	167,698,473
Reinvestment of distributions		59,577			643,179			88,980			934,026			—			—			265,208			9,641,766
Cost of Shares redeemed		(1,871,053	)		(20,154,403	)		(1,845,689	)		(19,376,167	)		(1,545,251	)		(58,467,658	)		(1,720,071	)		(62,801,078	)
Change from Class A Share Transactions		616,243			6,693,696			2,387,757			25,135,648			(307,094	)		(11,687,106	)		3,067,672			114,539,161
Class C
Proceeds from Shares issued		1,620,135			17,253,177			2,392,983			24,851,358			326,629			11,920,856			1,057,840			37,371,654
Reinvestment of distributions		38,758			413,154			57,328			593,349			—			—			15,031			530,969
Cost of Shares redeemed		(409,704	)		(4,365,021	)		(586,781	)		(6,087,647	)		(96,980	)		(3,559,257	)		(89,966	)		(3,169,913	)
Change from Class C Share Transactions		1,249,189			13,301,310			1,863,530			19,357,060			229,649			8,361,599			982,905			34,732,710
Class Y
Proceeds from Shares issued		17,027,595			184,174,618			18,472,408			194,854,094			2,368,562			90,833,518			4,496,401			165,513,223
Reinvestment of distributions		325,705			3,531,250			318,651			3,356,635			—			—			593,413			21,964,792
Cost of Shares redeemed		(4,940,046	)		(53,529,049	)		(7,260,579	)		(76,486,863	)		(2,026,609	)		(78,266,212	)		(2,227,174	)		(83,643,397	)
Change from Class Y Share Transactions		12,413,254			134,176,819			11,530,480			121,723,866			341,953			12,567,306			2,862,640			103,834,618
Institutional Class
Proceeds from Shares issued		2,294,925			24,867,423			6,063,065			63,851,043			270,130			10,344,365			446,318			16,652,226
Reinvestment of distributions		67,017			725,002			79,391			837,163			—			—			38,164			1,419,892
Cost of Shares redeemed		(1,931,050	)		(20,988,201	)		(2,566,505	)		(27,068,794	)		(295,104	)		(11,564,019	)		(546,524	)		(21,021,314	)
Change from Institutional Class Share Transactions		430,892			4,604,224			3,575,951			37,619,412			(24,974	)		(1,219,654	)		(62,042	)		(2,949,196	)
Change from Share Transactions		14,709,578		$	158,776,049			19,357,718		$	203,835,986			239,534		$	8,022,145			6,851,175		$	250,157,293

^(A)Represents the period from commencement of operations (April 1, 2016) through September 30, 2016.

See accompanying Notes to Financial Statements.

 42

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

Touchstone Growth												Touchstone International
Opportunities Fund												Growth Fund
For the Six Months												For the Six Months
Ended						For the Year						Ended
September 30, 2016						Ended						September 30, 2016(A)
(Unaudited)						March 31, 2016						(Unaudited)
Shares			Dollars			Shares			Dollars			Shares			Dollars
	32,333		$	880,950			70,196		$	2,177,325			250		$	2,500
	—			—			133,527			3,725,398			—			—
	(116,499	)		(3,237,348	)		(280,258	)		(8,429,913	)		—			—
	(84,166	)		(2,356,398	)		(76,535	)		(2,527,190	)		250			2,500
	9,104			218,760			54,550			1,468,821			250			2,500
	—			—			45,779			1,100,527			—			—
	(104,362	)		(2,504,044	)		(76,004	)		(1,995,073	)		—			—
	(95,258	)		(2,285,284	)		24,325			574,275			250			2,500
	116,991			3,295,461			591,080			18,203,037			250			2,500
	—			—			291,572			8,292,326			—			—
	(1,134,916	)		(32,398,322	)		(1,055,096	)		(31,885,449	)		—			—
	(1,017,925	)		(29,102,861	)		(172,444	)		(5,390,086	)		250			2,500
	444,466			12,659,475			3,616,634			103,753,183			1,336,717			13,603,116
	—			—			394,776			11,326,115			—			—
	(543,385	)		(15,415,406	)		(1,710,927	)		(52,202,827	)		(278,325	)		(2,799,606	)
	(98,919	)		(2,755,931	)		2,300,483			62,876,471			1,058,392			10,803,510
	(1,296,268	)	$	(36,500,474	)		2,075,829		$	55,533,470			1,059,142		$	10,811,010

 43

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

	Touchstone International												Touchstone Mid Cap
	Value Fund												Growth Fund
	For the Six Months												For the Six Months
	Ended						For the Year						Ended						For the Year
	September 30, 2016						Ended						September 30, 2016						Ended
	(Unaudited)						March 31, 2016						(Unaudited)						March 31, 2016
	Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		2,361		$	16,982			41,430		$	344,810			797,836		$	19,054,140			1,904,282		$	47,265,429
Reinvestment of distributions		—			—			12,693			96,845			—			—			772,320			17,933,276
Cost of Shares redeemed		(28,771	)		(210,058	)		(179,854	)		(1,484,202	)		(1,239,012	)		(29,280,410	)		(2,844,621	)		(70,651,555	)
Change from Class A Share Transactions		(26,410	)		(193,076	)		(125,731	)		(1,042,547	)		(441,176	)		(10,226,270	)		(168,019	)		(5,452,850	)
Class B
Proceeds from Shares issued		—			—			—			—			—			—			1,573			29,154
Reinvestment of distributions		—			—			—			—			—			—			8,303			139,566
Cost of Shares redeemed		—			—			—			—			(37,652	)		(646,363	)		(79,553	)		(1,508,549	)
Change in Net Assets from Class B Share Transactions		—			—			—			—			(37,652	)		(646,363	)		(69,677	)		(1,339,829	)
Class C
Proceeds from Shares issued		—			—			304			2,552			71,019			1,178,681			551,868			9,655,543
Reinvestment of distributions		—			—			279			1,975			—			—			720,386			11,756,699
Cost of Shares redeemed		(3,235	)		(22,041	)		(12,727	)		(97,186	)		(825,156	)		(13,801,063	)		(1,396,724	)		(24,082,215	)
Change from Class C Share Transactions		(3,235	)		(22,041	)		(12,144	)		(92,659	)		(754,137	)		(12,622,382	)		(124,470	)		(2,669,973	)
Class Y
Proceeds from Shares issued		16,676			121,681			74,049			546,922			1,557,551			38,079,448			6,261,056			161,597,769
Reinvestment of distributions		—			—			6,369			48,722			—			—			1,114,876			26,629,213
Cost of Shares redeemed		(73,723	)		(545,022	)		(3,636,320	)		(31,264,810	)		(2,573,960	)		(63,294,187	)		(3,638,884	)		(89,071,569	)
Change from Class Y Share Transactions		(57,047	)		(423,341	)		(3,555,902	)		(30,669,166	)		(1,016,409	)		(25,214,739	)		3,737,048			99,155,413
Institutional Class
Proceeds from Shares issued		96,822			713,293			6,466,412			54,344,378			109,852			2,678,825			827,272			21,629,729
Reinvestment of distributions		—			—			332,824			2,536,116			—			—			293,845			7,066,529
Cost of Shares redeemed		(2,497,685	)		(18,265,800	)		(10,700,358	)		(77,412,834	)		(1,993,936	)		(49,026,201	)		(1,302,404	)		(33,733,839	)
Change from Institutional Class Share Transactions		(2,400,863	)		(17,552,507	)		(3,901,122	)		(20,532,340	)		(1,884,084	)		(46,347,376	)		(181,287	)		(5,037,581	)
Change from Share Transactions		(2,487,555	)	$	(18,190,965	)		(7,594,899	)	$	(52,336,712	)		(4,133,458	)	$	(95,057,130	)		3,193,595		$	84,655,180

See accompanying Notes to Financial Statements.

 44

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

Touchstone Sands Capital												Touchstone Small Cap
Emerging Markets Growth Fund												Growth Fund
For the Six Months												For the Six Months
Ended						For the Year						Ended						For the Year
September 30, 2016						Ended						September 30, 2016						Ended
(Unaudited)						March 31, 2016						(Unaudited)						March 31, 2016
Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
	—		$	—			—		$	—			1,741,040		$	8,740,552			6,334,906		$	33,165,487
	—			—			—			—			—			—			69,622			364,827
	—			—			—			—			(3,212,844	)		(16,006,673	)		(2,604,243	)		(13,452,965	)
	—			—			—			—			(1,471,804	)		(7,266,121	)		3,800,285			20,077,349
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			181,294			757,733			2,482,325			11,675,961
	—			—			—			—			—			—			48,018			209,357
	—			—			—			—			(914,860	)		(3,830,161	)		(769,650	)		(3,344,482	)
	—			—			—			—			(733,566	)		(3,072,428	)		1,760,693			8,540,836
	3,809,270			38,431,182			5,987,808			55,295,001			20,164,161			113,381,968			75,312,271			437,335,735
	—			—			—			—			—			—			471,446			2,748,545
	(837,682	)		(8,099,650	)		(3,618,045	)		(32,366,796	)		(43,003,495	)		(241,540,317	)		(33,791,885	)		(198,401,163	)
	2,971,588			30,331,532			2,369,763			22,928,205			(22,839,334	)		(128,158,349	)		41,991,832			241,683,117
	4,272,058			41,967,971			10,054,252			92,244,069			892,039			5,044,263			4,210,401			26,472,516
	—			—			—			—			—			—			18,374			107,673
	(1,288,018	)		(12,725,124	)		(2,436,608	)		(22,196,320	)		(969,614	)		(5,428,555	)		(2,067,243	)		(12,212,366	)
	2,984,040			29,242,847			7,617,644			70,047,749			(77,575	)		(384,292	)		2,161,532			14,367,823
	5,955,628		$	59,574,379			9,987,407		$	92,975,954			(25,122,279	)	$	(138,881,190	)		49,714,342		$	284,669,125

 45

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

	Touchstone Sustainability
	and Impact Equity Fund
	For the Six Months
	Ended						For the Year
	September 30, 2016						Ended
	(Unaudited)						March 31, 2016
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		134,175		$	2,589,526			706,280		$	14,839,030
Reinvestment of distributions		—			—			3,095,277			63,666,766
Cost of Shares redeemed		(1,229,293	)		(23,911,075	)		(4,875,781	)		(110,529,641	)
Change from Class A Share Transactions		(1,095,118	)		(21,321,549	)		(1,074,224	)		(32,023,845	)
Class B
Proceeds from Shares sold		—			—			8,519			156,498
Reinvestment of distributions		—			—			19,366			355,752
Cost of Shares redeemed		(18,625	)		(316,535	)		(60,699	)		(1,082,423	)
Change in Net Assets from Class B Share Transactions		(18,625	)		(316,535	)		(32,814	)		(570,173	)
Class C
Proceeds from Shares issued		86,784			1,458,170			759,874			13,625,313
Reinvestment of distributions		—			—			1,146,660			20,605,480
Cost of Shares redeemed		(435,625	)		(7,335,651	)		(2,146,573	)		(42,123,412	)
Change from Class C Share Transactions		(348,841	)		(5,877,481	)		(240,039	)		(7,892,619	)
Class Y
Proceeds from Shares issued		1,656,860			32,754,301			1,864,952			39,445,520
Reinvestment of distributions		—			—			2,799,042			59,003,816
Cost of Shares redeemed		(622,023	)		(12,351,530	)		(14,428,732	)		(372,515,157	)
Change from Class Y Share Transactions		1,034,837			20,402,771			(9,764,738	)		(274,065,821	)
Institutional Class
Proceeds from Shares issued		440,098			8,806,679			393,939			7,896,474
Reinvestment of distributions		—			—			38			801
Cost of Shares redeemed		(57,687	)		(1,136,944	)		(43,017	)		(802,017	)
Change from Institutional Class Share Transactions		382,411			7,669,735			350,960			7,095,258
Change from Share Transactions		(45,336	)	$	556,941			(10,760,855	)	$	(307,457,200	)

See accompanying Notes to Financial Statements.

 46

Financial Highlights

Touchstone Flexible Income Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)			2012			2011
Net asset value at beginning of period	$	10.58		$	10.67		$	10.60		$	10.94		$	10.76		$	10.47		$	10.00
Income (loss) from investment operations:
Net investment income		0.14			0.32			0.43			0.51			0.35	(B)		0.49	(c)		0.52	(c)
Net realized and unrealized gains (losses) on investments		0.30			(0.10	)		0.11			(0.37	)		0.16			0.31			0.44
Total from investment operations		0.44			0.22			0.54			0.14			0.51			0.80			0.96
Distributions from:
Net investment income		(0.14	)		(0.31	)		(0.47	)		(0.48	)		(0.33	)		(0.51	)		(0.49	)
Net asset value at end of period	$	10.88		$	10.58		$	10.67		$	10.60		$	10.94		$	10.76		$	10.47
Total return(D)		4.17	%(E)		2.13	%		5.22	%		1.45	%		4.77	%(E)		7.86	%		9.90	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	66,034		$	57,671		$	32,695		$	25,928		$	41,301		$	49,458		$	25,400
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)(F)		1.10	%(G)		1.09	%		1.09	%		0.98	%		0.94	%(G)		0.95	%		1.02	%
Gross expenses (including dividend and interest expense on securities sold short)(H)		1.29	%(G)		1.32	%		1.35	%		1.35	%		1.37	%(G)		1.60	%		1.61	%
Net investment income		2.51	%(G)		3.19	%		3.95	%		4.82	%		4.76	%(B)(G)		4.65	%		4.99	%
Portfolio turnover rate		60	%(E)		122	%		102	%		44	%		41	%(E)		47	%		42	%

^(A) The Fund changed its fiscal year end from July 31 to March 31.

^(B) Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, Class A net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively.

^(C) The net investment income per share is based on average shares outstanding for the period.

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

^(E) Not annualized.

^(F) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.09% for the six months ended September 30, 2016.

^(G) Annualized.

^(H) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.28% for the six months ended September 30, 2016.

See accompanying Notes to Financial Statements.

 47

Financial Highlights (Continued)

Touchstone Flexible Income Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)			2012			2011
Net asset value at beginning of period	$	10.44		$	10.54		$	10.47		$	10.82		$	10.65		$	10.36		$	9.90
Income (loss) from investment operations:
Net investment income		0.09			0.26			0.34			0.43			0.29	(B)		0.40	(C)		0.44	(C)
Net realized and unrealized gains (losses) on investments		0.31			(0.12	)		0.12			(0.37	)		0.15			0.32			0.44
Total from investment operations		0.40			0.14			0.46			0.06			0.44			0.72			0.88
Distributions from:
Net investment income		(0.10	)		(0.24	)		(0.39	)		(0.41	)		(0.27	)		(0.43	)		(0.42	)
Net asset value at end of period	$	10.74		$	10.44		$	10.54		$	10.47		$	10.82		$	10.65		$	10.36
Total return(D)		3.85	%(E)		1.32	%		4.52	%		0.61	%		4.20	%(E)		7.16	%		9.09	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	59,775		$	45,079		$	25,853		$	21,043		$	26,087		$	25,115		$	16,818
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)(F)		1.85	%(G)		1.84	%		1.84	%		1.74	%		1.69	%(G)		1.70	%		1.77	%
Gross expenses (including dividend and interest expense on securities sold short)(H)		1.99	%(G)		2.05	%		2.10	%		2.09	%		2.16	%(G)		2.35	%		2.36	%
Net investment income		1.76	%(G)		2.44	%		3.20	%		4.07	%		4.01	%(B)(G)		3.82	%		4.25	%
Portfolio turnover rate		60	%(E)		122	%		102	%		44	%		41	%(E)		47	%		42	%

^(A) The Fund changed its fiscal year end from July 31 to March 31.

^(B) Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively.

^(C) The net investment income per share is based on average shares outstanding for the period.

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

^(E) Not annualized.

^(F) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class C is 1.84% for the six months ended September 30, 2016.

^(G) Annualized.

^(H) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class C is 1.98% for the six months ended September 30, 2016.

See accompanying Notes to Financial Statements.

 48

Financial Highlights (Continued)

Touchstone Flexible Income Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)(B)			2012			2011
Net asset value at beginning of period	$	10.61		$	10.70		$	10.62		$	10.97		$	10.79		$	10.49		$	10.02
Income (loss) from investment operations:
Net investment income		0.14			0.36			0.46			0.54			0.37	(C)		0.50	(D)		0.54	(D)
Net realized and unrealized gains (losses) on investments		0.31			(0.11	)		0.12			(0.38	)		0.16			0.33			0.45
Total from investment operations		0.45			0.25			0.58			0.16			0.53			0.83			0.99
Distributions from:
Net investment income		(0.15	)		(0.34	)		(0.50	)		(0.51	)		(0.35	)		(0.53	)		(0.52	)
Net asset value at end of period	$	10.91		$	10.61		$	10.70		$	10.62		$	10.97		$	10.79		$	10.49
Total return		4.29	%(E)		2.38	%		5.58	%		1.63	%		4.96	%(E)		8.21	%		10.15	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	504,209		$	358,423		$	238,081		$	151,652		$	199,293		$	200,325		$	122,125
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)(F)		0.85	%(G)		0.84	%		0.84	%		0.71	%		0.64	%(G)		0.70	%		0.77	%
Gross expenses (including dividend and interest expense on securities sold short)(H)		0.99	%(G)		1.05	%		1.01	%		1.00	%		1.05	%(G)		1.35	%		1.36	%
Net investment income		2.76	%(G)		3.44	%		4.21	%		5.10	%		5.06	%(C)(G)		4.80	%		5.22	%
Portfolio turnover rate		60	%(E)		122	%		102	%		44	%		41	%(E)		47	%		42	%

^(A) Effective September 10, 2012, Institutional Class shares were renamed Class Y shares.

^(B) The Fund changed its fiscal year end from July 31 to March 31.

^(C) Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class Y net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively.

^(D) The net investment income per share is based on average shares outstanding for the period.

^(E) Not annualized.

^(F) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 0.84% for the six months ended September 30, 2016.

^(G) Annualized.

^(H) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 0.98% for the six months ended September 30, 2016.

See accompanying Notes to Financial Statements.

 49

Financial Highlights (Continued)

Touchstone Flexible Income Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September 30,												Period Ended
	2016			Year Ended March 31,									March 31,
	(Unaudited)			2016			2015			2014			2013(A)
Net asset value at beginning of period	$	10.60		$	10.69		$	10.62		$	10.96		$	10.86
Income (loss) from investment operations:
Net investment income		0.16			0.36			0.46			0.54			0.30	(B)
Net realized and unrealized gains (losses) on investments		0.31			(0.10	)		0.12			(0.36	)		0.12
Total from investment operations		0.47			0.26			0.58			0.18			0.42
Distributions from:
Net investment income		(0.16	)		(0.35	)		(0.51	)		(0.52	)		(0.32	)
Net asset value at end of period	$	10.91		$	10.60		$	10.69		$	10.62		$	10.96
Total return		4.34	%(C)		2.57	%		5.58	%		1.81	%		3.93	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	89,359		$	82,286		$	44,732		$	41,361		$	20,589
Ratio to average net assets:
Net expenses (including dividend and interest expense on securities sold short)(D)		0.75	%(E)		0.74	%		0.74	%		0.65	%		0.59	%(E)
Gross expenses (including dividend and interest expense on securities sold short)(F)		0.91	%(E)		0.94	%		0.95	%		0.95	%		1.03	%(E)
Net investment income		2.86	%(E)		3.54	%		4.30	%		5.16	%		5.11	%(B)(E)
Portfolio turnover rate		60	%(C)		122	%		102	%		44	%		41	%(C)

^(A) Represents the period from commencement of operations (September 10, 2012) through March 31, 2013.

^(B) Reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Institutional Class net investment income per share and ratio of net investment income to average net assets would have been lower by $0.01 and 0.13%, respectively.

^(C) Not annualized.

^(D) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Institutional Class is 0.74% for the six months ended September 30, 2016.

^(E) Annualized.

^(F) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Institutional Class is 0.90% for the six months ended September 30, 2016.

See accompanying Notes to Financial Statements.

 50

Financial Highlights (Continued)

Touchstone Focused Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	36.68		$	37.19		$	34.87		$	27.55		$	23.63		$	21.92
Income from investment operations:
Net investment income		0.06			0.16	(A)		0.20	(A)		0.11	(A)		0.16	(A)		0.12	(A)
Net realized and unrealized gains on investments		2.02			0.38			2.23			7.46			3.79	(B)		1.67
Total from investment operations		2.08			0.54			2.43			7.57			3.95			1.79
Distributions from:
Net investment income		—			(0.20	)		(0.11	)		(0.25	)		(0.03	)		(0.24	)
Realized capital gains		—			(0.85	)		—			—			—			—
Total distributions		—			(1.05	)		(0.11	)		(0.25	)		(0.03	)		(0.24	)
Capital Contribution		—			—			—			—			—			0.16	(C)
Net asset value at end of period	$	38.76		$	36.68		$	37.19		$	34.87		$	27.55		$	23.63
Total return(D)		5.70	%(E)		1.47	%		6.99	%		27.67	%		16.75	%(B)		9.08	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	416,614		$	405,458		$	297,072		$	233,841		$	8,497		$	7,352
Ratio to average net assets:
Net expenses		1.20	%(F)		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Gross expenses		1.29	%(F)		1.31	%		1.37	%		1.46	%		1.90	%		1.44	%
Net investment income		0.30	%(F)		0.43	%		0.57	%		0.35	%		0.66	%		0.58	%
Portfolio turnover rate		7	%(E)		28	%		33	%		27	%(G)		189	%		99	%

Touchstone Focused Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September 30,												Period Ended
	2016			Year Ended March 31,									March 31,
	(Unaudited)			2016			2015			2014			2013(H)
Net asset value at beginning of period	$	35.54		$	36.34		$	34.32		$	27.33		$	22.61
Income (loss) from investment operations:
Net investment loss		(0.04	)		(0.11	)(A)		(0.06	)(A)		(0.13	)(A)		(0.02	)(A)
Net realized and unrealized gains on investments		1.92			0.37			2.18			7.38			4.80	(B)
Total from investment operations		1.88			0.26			2.12			7.25			4.78
Distributions from:
Net investment income		—			(0.21	)		(0.10	)		(0.26	)		(0.06	)
Realized capital gains		—			(0.85	)		—			—			—
Total distributions		—			(1.06	)		(0.10	)		(0.26	)		(0.06	)
Net asset value at end of period	$	37.42		$	35.54		$	36.34		$	34.32		$	27.33
Total return(D)		5.29	%(E)		0.73	%		6.18	%		26.72	%		21.19	%(B)(E)
Ratios and supplemental data:
Net assets at end of period (000's)	$	55,280		$	44,338		$	9,617		$	5,626		$	60
Ratio to average net assets:
Net expenses		1.95	%(F)		1.95	%		1.95	%		1.95	%		1.95	%(F)
Gross expenses		1.96	%(F)		2.00	%		2.09	%		2.84	%		258.39	%(F)
Net investment loss		(0.45	%)(F)		(0.32	%)		(0.18	%)		(0.40	%)		(0.09	%)(F)
Portfolio turnover rate		7	%(E)		28	%		33	%		27	%(G)		189	%

^(A) The net investment income (loss) per share is based on average shares outstanding for the period.

^(B) Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.76% and 0.78% for Class A and Class C, respectively.

^(C) Impact of one time distribution of settlement funds from the Bank of America Fair Fund. If the distribution had not occurred the total return would have been lower.

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

^(E) Not annualized.

^(F) Annualized.

^(G) Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher.

^(H) Represents the period from commencement of operations (April 16, 2012) through March 31, 2013.

See accompanying Notes to Financial Statements.

 51

Financial Highlights (Continued)

Touchstone Focused Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	37.29		$	37.76		$	35.34		$	27.86		$	23.85		$	22.17
Income from investment operations:
Net investment income		0.11			0.26	(A)		0.31	(A)		0.19	(A)		0.22	(A)		0.18	(A)
Net realized and unrealized gains on investments		2.07			0.39			2.26			7.54			3.84	(B)		1.66
Total from investment operations		2.18			0.65			2.57			7.73			4.06			1.84
Distributions from:
Net investment income		—			(0.27	)		(0.15	)		(0.25	)		(0.05	)		(0.32	)
Realized capital gains		—			(0.85	)		—			—			—			—
Total distributions		—			(1.12	)		(0.15	)		(0.25	)		(0.05	)		(0.32	)
Capital Contribution		—			—			—			—			—			0.16	(C)
Net asset value at end of period	$	39.47		$	37.29		$	37.76		$	35.34		$	27.86		$	23.85
Total return		5.85	%(D)		1.75	%		7.29	%		27.95	%		17.07	%(B)		9.29	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	917,203		$	853,900		$	756,579		$	736,023		$	578,006		$	555,142
Ratio to average net assets:
Net expenses		0.93	%(E)		0.93	%		0.92	%		0.94	%		0.95	%		0.95	%
Gross expenses		0.93	%(E)		0.94	%		0.97	%		1.02	%		1.05	%		1.28	%
Net investment income		0.57	%(E)		0.70	%		0.85	%		0.61	%		0.91	%		0.85	%
Portfolio turnover rate		7	%(D)		28	%		33	%		27	%(F)		189	%		99	%

^(A) The net investment income per share is based on average shares outstanding for the period.

^(B) Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.76% for Class Y.

^(C) Impact of one time distribution of settlement funds from the Bank of America Fair Fund. If the distribution had not occurred the total return would have been lower.

^(D) Not annualized.

^(E) Annualized.

^(F) Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

 52

Financial Highlights (Continued)

Touchstone Focused Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	37.45		$	37.91		$	35.47		$	27.96		$	23.91		$	22.23
Income from investment operations:
Net investment income		0.15			0.31	(A)		0.35	(A)		0.24	(A)		0.25	(A)		0.22	(A)
Net realized and unrealized gains on investments		2.05			0.39			2.28			7.57			3.86	(B)		1.66
Total from investment operations		2.20			0.70			2.63			7.81			4.11			1.88
Distributions from:
Net investment income		—			(0.31	)		(0.19	)		(0.30	)		(0.06	)		(0.36	)
Realized capital gains		—			(0.85	)		—			—			—			—
Total distributions		—			(1.16	)		(0.19	)		(0.30	)		(0.06	)		(0.36	)
Capital Contribution		—			—			—			—			—			0.16	(C)
Net asset value at end of period	$	39.65		$	37.45		$	37.91		$	35.47		$	27.96		$	23.91
Total return		5.87	%(D)		1.89	%		7.40	%		28.19	%		17.24	%(B)		9.45	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	50,685		$	48,805		$	51,765		$	30,446		$	589		$	29,879
Ratio to average net assets:
Net expenses		0.83	%(E)		0.82	%		0.80	%		0.80	%		0.80	%		0.80	%
Gross expenses		0.89	%(E)		0.90	%		0.88	%		1.00	%		1.16	%		0.89	%
Net investment income		0.67	%(E)		0.81	%		0.97	%		0.75	%		1.06	%		1.02	%
Portfolio turnover rate		7	%(D)		28	%		33	%		27	%(F)		189	%		99	%

^(A) The net investment income per share is based on average shares outstanding for the period.

^(B) Net realized gains (losses) on investments per share and total return reflect non-recurring litigation settlements. These resulted in an increase in net realized gains per share of $0.18 and an increase in total return of 0.75% for Institutional Class.

^(C) Impact of one time distribution of settlement funds from the Bank of America Fair Fund. If the distribution had not occurred the total return would have been lower.

^(D) Not annualized.

^(E) Annualized.

^(F) Portfolio turnover excludes the purchases and sales of the Touchstone Focused Equity Fund acquired on May 17, 2013. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

 53

Financial Highlights (Continued)

Touchstone Growth Opportunities Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	27.35		$	33.29		$	32.61		$	27.05		$	25.64		$	25.27
Income (loss) from investment operations:
Net investment income (loss)		(0.04	)		(0.08	)		(0.15	)		0.01			(0.01	)		(0.16	)
Net realized and unrealized gains (losses) on investments		1.25			(2.90	)		4.82			6.91			3.35			0.53
Total from investment operations		1.21			(2.98	)		4.67			6.92			3.34			0.37
Distributions from:
Realized capital gains		—			(2.96	)		(3.99	)		(1.36	)		(1.93	)		—
Net asset value at end of period	$	28.56		$	27.35		$	33.29		$	32.61		$	27.05		$	25.64
Total return(A)		4.42	%(B)		(9.12	%)		14.99	%		25.84	%		14.08	%		1.47	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	37,590		$	38,297		$	49,162		$	47,552		$	74,588		$	62,274
Ratio to average net assets:
Net expenses		1.24	%(C)		1.24	%		1.24	%		1.22	%		1.22	%		1.21	%
Gross expenses		1.40	%(C)		1.38	%		1.40	%		1.43	%		1.37	%		1.43	%
Net investment income (loss)		(0.24	%)(C)		(0.24	%)		(0.47	%)		0.09	%		(0.06	%)		(0.52	%)
Portfolio turnover rate		44	%(B)		137	%		87	%		79	%		95	%(D)		204	%

Touchstone Growth Opportunities Fund — Class C

Selected Data for a Share Outstanding Throughout Each Period

	Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	23.51		$	29.27		$	29.32		$	24.62		$	23.68		$	23.50
Income (loss) from investment operations:
Net investment loss		(0.25	)		(0.24	)		(0.33	)		(0.18	)		(0.17	)		(0.29	)
Net realized and unrealized gains (losses) on investments		1.20			(2.56	)		4.27			6.24			3.04			0.47
Total from investment operations		0.95			(2.80	)		3.94			6.06			2.87			0.18
Distributions from:
Realized capital gains		—			(2.96	)		(3.99	)		(1.36	)		(1.93	)		—
Net asset value at end of period	$	24.46		$	23.51		$	29.27		$	29.32		$	24.62		$	23.68
Total return(A)		4.04	%(B)		(9.78	%)		14.11	%		24.92	%		13.24	%		0.77	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	9,806		$	11,665		$	13,813		$	12,498		$	10,375		$	9,132
Ratio to average net assets:
Net expenses		1.99	%(C)		1.99	%		1.99	%		1.97	%		1.97	%		1.96	%
Gross expenses		2.25	%(C)		2.20	%		2.21	%		2.25	%		2.37	%		2.45	%
Net investment loss		(0.99	%)(C)		(0.99	%)		(1.22	%)		(0.66	%)		(0.81	%)		(1.27	%)
Portfolio turnover rate		44	%(B)		137	%		87	%		79	%		95	%(D)		204	%

^(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 purchases and sales of the Fifth Third Mid Cap Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

 54

Financial Highlights (Continued)

Touchstone Growth Opportunities Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	27.90		$	33.81		$	32.97		$	27.27		$	25.80		$	25.38
Income (loss) from investment operations:
Net investment income (loss)		0.02			(—	)(A)		(0.06	)		0.11			0.03			(0.05	)
Net realized and unrealized gains (losses) on investments		1.25			(2.95	)		4.90			6.96			3.40			0.47
Total from investment operations		1.27			(2.95	)		4.84			7.07			3.43			0.42
Distributions from:
Net investment income		—			—			(0.01	)		(0.01	)		(0.03	)		—
Realized capital gains		—			(2.96	)		(3.99	)		(1.36	)		(1.93	)		—
Total distributions		—			(2.96	)		(4.00	)		(1.37	)		(1.96	)		—
Net asset value at end of period	$	29.17		$	27.90		$	33.81		$	32.97		$	27.27		$	25.80
Total return		4.55	%(B)		(8.88	%)		15.32	%		26.23	%		14.38	%		1.66	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	57,849		$	83,721		$	107,295		$	92,063		$	35,354		$	12,254
Ratio to average net assets:
Net expenses		0.99	%(C)		0.99	%		0.94	%		0.92	%		0.96	%		0.96	%
Gross expenses		1.09	%(C)		1.07	%		1.01	%		1.03	%		1.16	%		1.42	%
Net investment income (loss)		0.01	%(C)		0.01	%		(0.17	%)		0.39	%		0.19	%		(0.27	%)
Portfolio turnover rate		44	%(B)		137	%		87	%		79	%		95	%(D)		204	%

Touchstone Growth Opportunities Fund—Institutional Class

Selected data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	28.15		$	34.05		$	33.18		$	27.42		$	25.92		$	25.46
Income (loss) from investment operations:
Net investment income (loss)		0.02			0.01			(0.04	)		0.14			0.07			(0.03	)
Net realized and unrealized gains (losses) on investments		1.28			(2.95	)		4.92			7.01			3.41			0.49
Total from investment operations		1.30			(2.94	)		4.88			7.15			3.48			0.46
Distributions from:
Net investment income		—			—			(0.02	)		(0.03	)		(0.05	)		—
Realized capital gains		—			(2.96	)		(3.99	)		(1.36	)		(1.93	)		—
Total distributions		—			(2.96	)		(4.01	)		(1.39	)		(1.98	)		—
Net asset value at end of period	$	29.45		$	28.15		$	34.05		$	33.18		$	27.42		$	25.92
Total return		4.62	%(B)		(8.79	%)		15.39	%		26.34	%		14.50	%		1.81	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	181,404		$	176,191		$	134,795		$	115,769		$	93,800		$	70,643
Ratio to average net assets:
Net expenses		0.89	%(C)		0.89	%		0.87	%		0.84	%		0.84	%		0.81	%
Gross expenses		0.99	%(C)		0.98	%		0.97	%		0.98	%		1.00	%		1.06	%
Net investment income (loss)		0.12	%(C)		0.11	%		(0.10	%)		0.47	%		0.31	%		(0.12	%)
Portfolio turnover rate		44	%(B)		137	%		87	%		79	%		95	%(D)		204	%

^(A) Less than $(0.005) per share.

^(B) Not annualized.

^(C) Annualized.

^(D) Portfolio turnover excludes the purchases and sales of the Fifth Third Mid Cap Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

 55

Financial Highlights (Continued)

Touchstone International Growth Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September 30,
	2016(A)
	(Unaudited)
Net asset value at beginning of period	$	10.00
Income from investment operations:
Net investment income		0.02
Net realized and unrealized gains on investments		0.33
Total from investment operations		0.35
Net asset value at end of period	$	10.35
Total return(B)		3.50	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	3
Ratio to average net assets:
Net expenses		1.32	%(D)
Gross expenses		406.75	%(D)
Net investment income		0.54	%(D)
Portfolio turnover rate		36	%(C)

Touchstone International Growth Fund— Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September 30,
	2016(A)
	(Unaudited)
Net asset value at beginning of period	$	10.00
Income from investment operations:
Net investment loss		(0.01	)
Net realized and unrealized gains on investments		0.32
Total from investment operations		0.31
Net asset value at end of period	$	10.31
Total return(B)		3.10	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	3
Ratio to average net assets:
Net expenses		2.07	%(D)
Gross expenses		407.81	%(D)
Net investment loss		(0.21	%)(D)
Portfolio turnover rate		36	%(C)

^(A) Represents the period from commencement of operations (April 1, 2016) through September 30, 2016.

^(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.

See accompanying Notes to Financial Statements.

 56

Financial Highlights (Continued)

Touchstone International Growth Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September 30,
	2016(A)
	(Unaudited)
Net asset value at beginning of period	$	10.00
Income from investment operations:
Net investment income		0.04
Net realized and unrealized gains on investments		0.32
Total from investment operations		0.36
Net asset value at end of period	$	10.36
Total return		3.60	%(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	3
Ratio to average net assets:
Net expenses		1.07	%(C)
Gross expenses		406.43	%(C)
Net investment income		0.79	%(C)
Portfolio turnover rate		36	%(B)

Touchstone International Growth Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September 30,
	2016(A)
	(Unaudited)
Net asset value at beginning of period	$	10.00
Income from investment operations:
Net investment income		0.04
Net realized and unrealized gains on investments		0.32
Total from investment operations		0.36
Net asset value at end of period	$	10.36
Total return		3.60	%(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	10,968
Ratio to average net assets:
Net expenses		0.97	%(C)
Gross expenses		2.13	%(C)
Net investment income		0.89	%(C)
Portfolio turnover rate		36	%(B)

^(A) Represents the period from commencement of operations (April 1, 2016) through September 30, 2016.

^(B) Not annualized.

^(C) Annualized.

See accompanying Notes to Financial Statements.

 57

Financial Highlights (Continued)

Touchstone International Value Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)			2012			2011
Net asset value at beginning of period	$	7.37		$	8.41		$	9.12		$	7.62		$	7.06		$	8.42		$	7.33
Income (loss) from investment operations:
Net investment income		0.13	(B)		0.14	(B)		0.18			0.24			0.06	(B)		0.14	(B)		0.17	(B)
Net realized and unrealized gains (losses) on investments		(0.04	)		(0.97	)		(0.63	)		1.35			0.73			(1.30	)		1.09
Total from investment operations		0.09			(0.83	)		(0.45	)		1.59			0.79			(1.16	)		1.26
Distributions from:
Net investment income		—			(0.21	)		(0.26	)		(0.09	)		(0.23	)		(0.20	)		(0.17	)
Net asset value at end of period	$	7.46		$	7.37		$	8.41		$	9.12		$	7.62		$	7.06		$	8.42
Total return(C)		1.22	%(D)		(9.97	%)		(4.95	%)		20.90	%		11.15	%(D)		(13.67	%)		17.17	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	3,549		$	3,700		$	5,280		$	6,032		$	6,394		$	7,266		$	10,258
Ratio to average net assets:
Net expenses		1.34	%(E)		1.36	%		1.39	%		1.37	%		1.36	%(E)(F)		1.40	%(F)		1.42	%(F)
Gross expenses		2.51	%(E)		2.10	%		1.97	%		1.79	%		2.22	%(E)		1.68	%		1.61	%
Net investment income		3.49	%(E)		1.78	%		1.89	%		2.32	%		1.21	%(E)		2.00	%		2.10	%
Portfolio turnover rate		8	%(D)		38	%		26	%		31	%		133	%(D)		121	%		131	%

Touchstone International Value Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)			2012			2011
Net asset value at beginning of period	$	6.83		$	7.77		$	8.46		$	7.10		$	6.59		$	7.85		$	6.84
Income (loss) from investment operations:
Net investment income		0.09	(B)		0.08	(B)		0.07			0.15			0.02	(B)		0.08	(B)		0.10	(B)
Net realized and unrealized gains (losses) on investments		(0.03	)		(0.90	)		(0.55	)		1.27			0.67			(1.21	)		1.01
Total from investment operations		0.06			(0.82	)		(0.48	)		1.42			0.69			(1.13	)		1.11
Distributions from:
Net investment income		—			(0.12	)		(0.21	)		(0.06	)		(0.18	)		(0.13	)		(0.10	)
Net asset value at end of period	$	6.89		$	6.83		$	7.77		$	8.46		$	7.10		$	6.59		$	7.85
Total return(C)		0.88	%(D)		(10.61	%)		(5.72	%)		20.05	%		10.53	%(D)		(14.37	%)		16.23	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	100		$	122		$	233		$	216		$	217		$	169		$	275
Ratio to average net assets:
Net expenses		2.09	%(E)		2.11	%		2.14	%		2.12	%		2.11	%(E)(F)		2.15	%(F)		2.17	%(F)
Gross expenses		13.80	%(E)		9.23	%		8.35	%		6.04	%		9.33	%(E)		2.43	%		2.36	%
Net investment income		2.74	%(E)		1.03	%		1.14	%		1.57	%		0.46	%(E)		1.24	%		1.28	%
Portfolio turnover rate		8	%(D)		38	%		26	%		31	%		133	%(D)		121	%		131	%

^(A) The Fund changed its fiscal year end from July 31 to March 31.

^(B) The net investment income per share is based on average shares outstanding for the period.

^(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) Includes interest expense relating to settlement of foreign futures. Interest expense was less than 0.005% for the eight months ended March 31, 2013 and 0.02% and 0.01% for the years ended July 31, 2012 and 2011, respectively.

See accompanying Notes to Financial Statements.

 58

Financial Highlights (Continued)

Touchstone International Value Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)(B)			2012			2011
Net asset value at beginning of period	$	7.39		$	8.41		$	9.13		$	7.62		$	7.07		$	8.44		$	7.35
Income (loss) from investment operations:
Net investment income		0.14	(C)		0.17	(C)		0.23			0.19			0.07	(C)		0.16	(C)		0.18	(C)
Net realized and unrealized gains (losses) on investments		(0.04	)		(0.98	)		(0.66	)		1.43			0.73			(1.31	)		1.10
Total from investment operations		0.10			(0.81	)		(0.43	)		1.62			0.80			(1.15	)		1.28
Distributions from:
Net investment income		—			(0.21	)		(0.29	)		(0.11	)		(0.25	)		(0.22	)		(0.19	)
Net asset value at end of period	$	7.49		$	7.39		$	8.41		$	9.13		$	7.62		$	7.07		$	8.44
Total return		1.35	%(D)		(9.77	%)		(4.72	%)		21.32	%		11.33	%(D)		(13.47	%)		17.42	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	4,219		$	4,583		$	35,108		$	43,794		$	31,527		$	123,607		$	176,521
Ratio to average net assets:
Net expenses		1.09	%(E)		1.12	%		1.09	%		1.04	%		1.08	%(E)(F)		1.15	%(F)		1.17	%(F)
Gross expenses		1.95	%(E)		1.56	%		1.36	%		1.33	%		1.51	%(E)		1.43	%		1.36	%
Net investment income		3.74	%(E)		2.02	%		2.19	%		2.65	%		1.49	%(E)		2.27	%		2.22	%
Portfolio turnover rate		8	%(D)		38	%		26	%		31	%		133	%(D)		121	%		131	%

Touchstone International Value Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September												Period
	30,												Ended
	2016			Year Ended March 31,									March 31,
	(Unaudited)			2016			2015			2014			2013(G)
Net asset value at beginning of period	$	7.35		$	8.42		$	9.14		$	7.62		$	7.43
Income (loss) from investment operations:
Net investment income		0.14	(C)		0.17	(C)		0.24			0.28			0.08	(C)
Net realized and unrealized gains (losses) on investments		(0.03	)		(0.98	)		(0.66	)		1.36			0.36
Total from investment operations		0.11			(0.81	)		(0.42	)		1.64			0.44
Distributions from:
Net investment income		—			(0.26	)		(0.30	)		(0.12	)		(0.25	)
Net asset value at end of period	$	7.46		$	7.35		$	8.42		$	9.14		$	7.62
Total return		1.50	%(D)		(9.74	%)		(4.66	%)		21.51	%		5.94	%(D)
Ratios and supplemental data:
Net assets at end of period (000's)	$	17,331		$	34,742		$	72,607		$	83,628		$	88,931
Ratio to average net assets:
Net expenses		0.99	%(E)		0.99	%		0.99	%		0.97	%		0.96	%(E)
Gross expenses		1.57	%(E)		1.29	%		1.28	%		1.29	%		1.36	%(E)
Net investment income		3.83	%(E)		2.15	%		2.29	%		2.72	%		1.61	%(E)
Portfolio turnover rate		8	%(D)		38	%		26	%		31	%		133	%(D)

^(A) Effective September 10, 2012, Institutional Class shares were renamed Class Y shares.

^(B) The Fund changed its fiscal year end from July 31 to March 31.

^(C) The net investment income per share is based on average shares outstanding for the period.

^(D) Not annualized.

^(E) Annualized.

^(F) Includes interest expense relating to settlement of foreign futures. Interest expense was less than 0.005% for the eight months ended March 31, 2013 and 0.02% and 0.01% for the years ended July 31, 2012 and 2011, respectively.

^(G) Represents the period from commencement of operations (September 10, 2012) through March 31, 2013.

See accompanying Notes to Financial Statements.

 59

Financial Highlights (Continued)

Touchstone Mid Cap Growth Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	23.28		$	27.06		$	26.50		$	23.61		$	22.41		$	24.91
Income (loss) from investment operations:
Net investment loss		(0.03	)		(0.10	)		(0.14	)		(0.10	)		(0.05	)		(0.16	)
Net realized and unrealized gains (losses) on investments		1.44			(1.62	)		4.19			5.74			2.71			(1.05	)
Total from investment operations		1.41			(1.72	)		4.05			5.64			2.66			(1.21	)
Distributions from:
Realized capital gains		—			(2.06	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Net asset value at end of period	$	24.69		$	23.28		$	27.06		$	26.50		$	23.61		$	22.41
Total return(A)		6.06	%(B)		(6.34	%)		16.34	%		24.82	%		12.73	%		(3.68	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	229,000		$	226,201		$	267,421		$	308,316		$	299,834		$	330,808
Ratio to average net assets:
Net expenses		1.31	%(C)		1.31	%		1.34	%		1.38	%		1.40	%		1.40	%
Gross expenses		1.31	%(C)		1.31	%		1.34	%		1.38	%		1.40	%		1.40	%
Net investment loss		(0.25	%)(C)		(0.42	%)		(0.55	%)		(0.41	%)		(0.21	%)		(0.79	%)
Portfolio turnover rate		47	%(B)		92	%		73	%		79	%		70	%		64	%

Touchstone Mid Cap Growth Fund—Class B

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	16.81		$	20.32		$	20.82		$	19.12		$	18.48		$	20.89
Income (loss) from investment operations:
Net investment loss		(0.38	)		(0.34	)		(0.29	)		(0.19	)		(0.12	)		(0.48	)
Net realized and unrealized gains (losses) on investments		1.33			(1.11	)		3.28			4.64			2.22			(0.64	)
Total from investment operations		0.95			(1.45	)		2.99			4.45			2.10			(1.12	)
Distributions from:
Realized capital gains		—			(2.06	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Net asset value at end of period	$	17.76		$	16.81		$	20.32		$	20.82		$	19.12		$	18.48
Total return(A)		5.65	%(B)		(7.14	%)		15.72	%		24.36	%		12.41	%		(3.99	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	536		$	1,140		$	2,793		$	4,709		$	5,880		$	10,681
Ratio to average net assets:
Net expenses		2.14	%(C)		2.14	%		1.89	%		1.73	%		1.72	%		1.59	%
Gross expenses		4.00	%(C)		2.30	%		1.89	%		1.73	%		1.72	%		1.59	%
Net investment loss		(2.94	%)(C)		(1.25	%)		(1.10	%)		(0.76	%)		(0.52	%)		(0.97	%)
Portfolio turnover rate		47	%(B)		92	%		73	%		79	%		70	%		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.

 60

Financial Highlights(Continued)

Touchstone Mid Cap Growth Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	16.33		$	19.78		$	20.39		$	18.84		$	18.31		$	20.81
Income (loss) from investment operations:
Net investment loss		(0.10	)		(0.21	)		(0.24	)		(0.22	)		(0.18	)		(0.36	)
Net realized and unrealized gains (losses) on investments		1.02			(1.18	)		3.12			4.52			2.17			(0.85	)
Total from investment operations		0.92			(1.39	)		2.88			4.30			1.99			(1.21	)
Distributions from:
Realized capital gains		—			(2.06	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Net asset value at end of period	$	17.25		$	16.33		$	19.78		$	20.39		$	18.84		$	18.31
Total return(A)		5.63	%(B)		(7.02	%)		15.51	%		23.90	%		11.90	%		(4.43	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	122,061		$	127,852		$	157,315		$	149,927		$	141,485		$	162,693
Ratio to average net assets:
Net expenses		2.07	%(C)		2.06	%		2.07	%		2.11	%		2.15	%		2.17	%
Gross expenses		2.07	%(C)		2.06	%		2.07	%		2.11	%		2.15	%		2.17	%
Net investment loss		(1.01	%)(C)		(1.17	%)		(1.29	%)		(1.14	%)		(0.95	%)		(1.56	%)
Portfolio turnover rate		47	%(B)		92	%		73	%		79	%		70	%		64	%

Touchstone Mid Cap Growth Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	23.92		$	27.71		$	27.00		$	23.93		$	22.63		$	25.07
Income (loss) from investment operations:
Net investment income (loss)		—	(D)		(0.04	)		(0.08	)		(0.05	)		0.01			(0.10	)
Net realized and unrealized gains (losses) on investments		1.48			(1.65	)		4.28			5.87			2.75			(1.05	)
Total from investment operations		1.48			(1.69	)		4.20			5.82			2.76			(1.15	)
Distributions from:
Net investment income		—			(0.04	)		—			—			—			—
Realized capital gains		—			(2.06	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Total distributions		—			(2.10	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Net asset value at end of period	$	25.40		$	23.92		$	27.71		$	27.00		$	23.93		$	22.63
Total return		6.19	%(B)		(6.08	%)		16.69	%		25.17	%		13.05	%		(3.42	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	343,424		$	347,706		$	299,247		$	263,578		$	164,267		$	123,593
Ratio to average net assets:
Net expenses		1.06	%(C)		1.05	%		1.07	%		1.07	%		1.16	%		1.11	%
Gross expenses		1.06	%(C)		1.05	%		1.07	%		1.07	%		1.16	%		1.11	%
Net investment income (loss)		0.01	%(C)		(0.16	%)		(0.29	%)		(0.11	%)		0.04	%		(0.49	%)
Portfolio turnover rate		47	%(B)		92	%		73	%		79	%		70	%		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.

(D) Less than $0.005 per share.

See accompanying Notes to Financial Statements.

 61

Financial Highlights (Continued)

Touchstone Mid Cap Growth Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012(A)
Net asset value at beginning of period	$	24.07		$	27.85		$	27.10		$	23.99		$	22.65		$	25.30
Income (loss) from investment operations:
Net investment income (loss)		0.10			(0.02	)		(0.03	)		0.03			0.04			(0.03	)
Net realized and unrealized gains (losses) on investments		1.40			(1.65	)		4.27			5.83			2.76			(1.33	)
Total from investment operations		1.50			(1.67	)		4.24			5.86			2.80			(1.36	)
Distributions from:
Net investment income		—			(0.05	)		—			—			—			—
Realized capital gains		—			(2.06	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Total distributions		—			(2.11	)		(3.49	)		(2.75	)		(1.46	)		(1.29	)
Net asset value at end of period	$	25.57		$	24.07		$	27.85		$	27.10		$	23.99		$	22.65
Total return		6.23	%(B)		(5.97	%)		16.73	%		25.32	%		13.23	%		(4.22	%)(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	41,213		$	84,152		$	102,420		$	35,097		$	38,821		$	25,550
Ratio to average net assets:
Net expenses		0.98	%(C)		0.95	%		0.98	%		0.97	%		0.98	%		1.03	%(C)
Gross expenses		0.98	%(C)		0.95	%		0.98	%		0.97	%		0.98	%		1.17	%(C)
Net investment income (loss)		0.08	%(C)		(0.05	%)		(0.20	%)		0.00	%(D)		0.21	%		(0.41	%)(C)
Portfolio turnover rate		47	%(B)		92	%		73	%		79	%		70	%		64	%

^(A) Represents the period from commencement of operations (April 1, 2011) through March 31, 2012.

^(B) Not annualized.

^(C) Annualized.

^(D) Less than 0.005%.

See accompanying Notes to Financial Statements.

 62

Financial Highlights (Continued)

Touchstone Sands Capital Emerging Markets Growth Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended						Period
	September 30,			Year Ended			Ended
	2016			March 31,			March 31,
	(Unaudited)			2016			2015(A)
Net asset value at beginning of period	$	9.40		$	10.37		$	10.00
Income (loss) from investment operations:
Net investment loss		(—	)(B)		(0.04	)		(0.03	)
Net realized and unrealized gains (losses) on investments		1.06			(0.93	)		0.40
Total from investment operations		1.06			(0.97	)		0.37
Net asset value at end of period	$	10.46		$	9.40		$	10.37
Total return		11.28	%(C)		(9.35	%)		3.70	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	95,762		$	58,106		$	39,541
Ratio to average net assets:
Net expenses		1.49	%(D)		1.49	%		1.49	%(D)
Gross expenses		1.50	%(D)		1.59	%		1.68	%(D)
Net investment loss		(0.03	%)(D)		(0.52	%)		(0.46	%)(D)
Portfolio turnover rate		36	%(C)		32	%		90	%(C)

Touchstone Sands Capital Emerging Markets Growth Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended						Period
	September 30,			Year Ended			Ended
	2016			March 31,			March 31,(A)
	(Unaudited)			2016			2016
Net asset value at beginning of period	$	9.41		$	10.37		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		—	(B)		(0.02	)		(0.03	)
Net realized and unrealized gains (losses) on investments		1.07			(0.94	)		0.40
Total from investment operations		1.07			(0.96	)		0.37
Net asset value at end of period	$	10.48		$	9.41		$	10.37
Total return		11.37	%(C)		(9.26	%)		3.70	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	144,195		$	101,401		$	32,743
Ratio to average net assets:
Net expenses		1.39	%(D)		1.39	%		1.39	%(D)
Gross expenses		1.43	%(D)		1.51	%		1.59	%(D)
Net investment income (loss)		0.07	%(D)		(0.42	%)		(0.36	%)(D)
Portfolio turnover rate		36	%(C)		32	%		90	%(C)

^(A) Represents the period from commencement of operations (May 12, 2014) through March 31, 2015.

^(B) Less than $0.005 or $(0.005) per share.

^(C) Not annualized.

^(D) Annualized.

See accompanying Notes to Financial Statements.

 63

Financial Highlights (Continued)

Touchstone Small Cap Growth Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)			2012			2011
Net asset value at beginning of period	$	4.98		$	5.70		$	5.24		$	4.84		$	4.25		$	4.24		$	3.63
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.04	)		(0.04	)		(0.01	)		—	(B)(C)		(—	)(B)(C)		(0.01	)(B)
Net realized and unrealized gains (losses) on investments		0.17			(0.62	)		0.63			1.02			0.85			0.01			0.62
Total from investment operations		0.15			(0.66	)		0.59			1.01			0.85			0.01			0.61
Distributions from:
Net investment income		—			—			—			—			(0.02	)		—			—
Realized capital gains		—			(0.06	)		(0.13	)		(0.61	)		(0.24	)		—			—
Total distributions		—			(0.06	)		(0.13	)		(0.61	)		(0.26	)		—			—
Net asset value at end of period	$	5.13		$	4.98		$	5.70		$	5.24		$	4.84		$	4.25		$	4.24
Total return(D)		3.01	%(E)		(11.68	%)		11.52	%		22.63	%		20.93	%(E)		0.24	%		16.80	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	42,561		$	48,650		$	34,017		$	35,303		$	14,243		$	15,010		$	18,117
Ratio to average net assets:
Net expenses		1.44	%(F)		1.44	%		1.44	%		1.45	%		1.60	%(F)		1.60	%		1.60	%
Gross expenses		1.62	%(F)		1.66	%		1.69	%		1.81	%		2.13	%(F)		2.01	%		1.96	%
Net investment income (loss)		(0.80	%)(F)		(0.94	%)		(0.71	%)		(0.48	%)		0.15	%(F)		(0.07	%)		(0.33	%)
Portfolio turnover rate		32	%(E)		36	%		46	%		195	%(G)		45	%(E)(H)		48	%		59	%

Touchstone Small Cap Growth Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)			2012			2011
Net asset value at beginning of period	$	4.14		$	4.78		$	4.45		$	4.22		$	3.75		$	3.77		$	3.25
Income (loss) from investment operations:
Net investment loss		(0.05	)		(0.07	)		(0.05	)		(0.04	)		(0.02	)(B)		(0.03	)(B)		(0.04	)(B)
Net realized and unrealized gains (losses) on investments		0.16			(0.51	)		0.51			0.88			0.74			0.01			0.56
Total from investment operations		0.11			(0.58	)		0.46			0.84			0.72			(0.02	)		0.52
Distributions from:
Net investment income		—			—			—			—			(0.01	)		—			—
Realized capital gains		—			(0.06	)		(0.13	)		(0.61	)		(0.24	)		—			—
Total distributions		—			(0.06	)		(0.13	)		(0.61	)		(0.25	)		—			—
Net asset value at end of period	$	4.25		$	4.14		$	4.78		$	4.45		$	4.22		$	3.75		$	3.77
Total return(D)		2.66	%(E)		(12.26	%)		10.64	%		21.85	%		20.17	%(E)		(0.53	%)		16.00	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	15,598		$	18,237		$	12,651		$	7,429		$	3,509		$	3,830		$	5,563
Ratio to average net assets:
Net expenses		2.19	%(F)		2.19	%		2.19	%		2.20	%		2.35	%(F)		2.35	%		2.35	%
Gross expenses		2.48	%(F)		2.46	%		2.55	%		2.65	%		3.16	%(F)		2.76	%		2.71	%
Net investment loss		(1.54	%)(F)		(1.69	%)		(1.46	%)		(1.23	%)		(0.60	%)(F)		(0.82	%)		(1.10	%)
Portfolio turnover rate		32	%(E)		36	%		46	%		195	%(G)		45	%(E)(H)		48	%		59	%

^(A) The Fund changed its fiscal year end from July 31 to March 31.

^(B) The net investment income (loss) per share is based on average shares outstanding for the period.

^(C) Less than $0.005 per share.

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

^(E) Not annualized.

^(F) Annualized.

^(G) Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund. If these transactions were included, portfolio turnover would have been higher.

^(H) Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind.

See accompanying Notes to Financial Statements.

 64

Financial Highlights (Continued)

Touchstone Small Cap Growth Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended												Eight
	September												Months
	30,												Ended
	2016			Year Ended March 31,									March 31,			Year Ended July 31,
	(Unaudited)			2016			2015			2014			2013(A)(B)			2012			2011
Net asset value at beginning of period	$	5.55		$	6.33		$	5.78		$	5.27		$	4.61		$	4.58		$	3.92
Income (loss) from investment operations:
Net investment income (loss)		(0.02	)		(0.03	)		(0.01	)		(0.01	)		0.01	(C)		0.01	(C)		(—	)(C)(D)
Net realized and unrealized gains (losses) on investments		0.19			(0.69	)		0.69			1.13			0.92			0.02			0.66
Total from investment operations		0.17			(0.72	)		0.68			1.12			0.93			0.03			0.66
Distributions from:
Net investment income		—			—			—			—			(0.03	)		—			—
Realized capital gains		—			(0.06	)		(0.13	)		(0.61	)		(0.24	)		—			—
Total distributions		—			(0.06	)		(0.13	)		(0.61	)		(0.27	)		—			—
Net asset value at end of period	$	5.72		$	5.55		$	6.33		$	5.78		$	5.27		$	4.61		$	4.58
Total return		3.06	%(E)		(11.46	%)		12.01	%		22.88	%		20.94	%(E)		0.66	%		16.84	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	393,563		$	508,450		$	314,062		$	37,030		$	18,123		$	23,232		$	26,317
Ratio to average net assets:
Net expenses		1.19	%(F)		1.19	%		1.19	%		1.20	%		1.35	%(F)		1.35	%		1.35	%
Gross expenses		1.33	%(F)		1.31	%		1.36	%		1.50	%		1.77	%(F)		1.76	%		1.71	%
Net investment income (loss)		(0.55	%)(F)		(0.69	%)		(0.46	%)		(0.23	%)		0.40	%(F)		0.17	%		(0.08	%)
Portfolio turnover rate		32	%(E)		36	%		46	%		195	%(G)		45	%(E)(H)		48	%		59	%

Touchstone Small Cap Growth Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six
	Months
	Ended
	September												Period
	30,												Ended
	2016			Year Ended March 31,									March 31,
	(Unaudited)			2016			2015			2014			2013(I)
Net asset value at beginning of period	$	5.58		$	6.35		$	5.80		$	5.28		$	4.92
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(0.03	)		(0.02	)		(—	)(D)		0.02	(C)
Net realized and unrealized gains (losses) on investments		0.19			(0.68	)		0.70			1.13			0.61
Total from investment operations		0.18			(0.71	)		0.68			1.13			0.63
Distributions from:
Net investment income		—			—			—			—			(0.03	)
Realized capital gains		—			(0.06	)		(0.13	)		(0.61	)		(0.24	)
Total distributions		—			(0.06	)		(0.13	)		(0.61	)		(0.27	)
Net asset value at end of period	$	5.76		$	5.58		$	6.35		$	5.80		$	5.28
Total return		3.23	%(E)		(11.27	%)		11.97	%		23.04	%		13.56	%(E)
Ratios and supplemental data:
Net assets at end of period (000's)	$	23,149		$	22,863		$	12,285		$	12,372		$	3
Ratio to average net assets:
Net expenses		1.04	%(F)		1.04	%		1.04	%		1.04	%		1.25	%(F)
Gross expenses		1.21	%(F)		1.23	%		1.31	%		1.40	%		945.43	%(F)
Net investment income (loss)		(0.40	%)(F)		(0.54	%)		(0.32	%)		(0.07	%)		0.50	%(F)
Portfolio turnover rate		32	%(E)		36	%		46	%		195	%(G)		45	%(E)(H)

^(A) Effective September 10, 2012, Institutional Class shares were renamed Class Y shares.

^(B) The Fund changed its fiscal year end from July 31 to March 31.

^(C) The net investment income (loss) per share is based on average shares outstanding for the period.

^(D) Less than $0.005 per share.

^(E) Not annualized.

^(F) Annualized.

^(G) Portfolio turnover excludes the purchases and sales of the Touchstone Diversified Small Cap Growth Fund. If these transactions were included, portfolio turnover would have been higher.

^(H) Portfolio turnover rate excludes securities delivered from processing a redemption-in-kind.

^(I) Represents the period from commencement of operations (September 10, 2012) through March 31, 2013.

See accompanying Notes to Financial Statements.

 65

Financial Highlights (Continued)

Touchstone Sustainability and Impact Equity Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	18.98		$	30.96		$	31.81		$	28.74		$	27.74		$	24.95
Income (loss) from investment operations:
Net investment income		0.13	(A)		0.06	(A)		0.11			0.02			0.11			0.02	(A)
Net realized and unrealized gains (losses) on investments		1.00			(1.99	)		4.87			5.96			1.00			2.77
Total from investment operations		1.13			(1.93	)		4.98			5.98			1.11			2.79
Distributions from:
Net investment income		—			(0.03	)		(0.05	)		(0.05	)		(0.11	)		—
Realized capital gains		—			(10.02	)		(5.78	)		(2.86	)		—			—
Total distributions		—			(10.05	)		(5.83	)		(2.91	)		(0.11	)		—
Net asset value at end of period	$	20.11		$	18.98		$	30.96		$	31.81		$	28.74		$	27.74
Total return(B)		5.95	%(C)		(8.73	%)		17.17	%		21.27	%		4.05	%		11.18	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	123,491		$	137,306		$	257,273		$	287,813		$	286,572		$	238,488
Ratio to average net assets:
Net expenses		1.24	%(D)		1.24	%		1.25	%		1.23	%		1.22	%		1.25	%
Gross expenses		1.39	%(D)		1.39	%		1.28	%		1.29	%		1.32	%		1.35	%
Net investment income		1.38	%(D)		0.31	%		0.35	%		0.06	%		0.47	%		0.08	%
Portfolio turnover rate		27	%(C)		304	%		98	%		92	%		109	%(E)		91	%

Touchstone Sustainability and Impact Equity Fund—Class B

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	16.84		$	28.74		$	30.08		$	27.41		$	26.47		$	23.85
Income (loss) from investment operations:
Net investment income (loss)		0.05	(A)		(0.08	)(A)		(0.15	)		(0.19	)		0.01			(0.03	)(A)
Net realized and unrealized gains (losses) on investments		0.89			(1.80	)		4.59			5.72			0.93			2.65
Total from investment operations		0.94			(1.88	)		4.44			5.53			0.94			2.62
Distributions from:
Realized capital gains		—			(10.02	)		(5.78	)		(2.86	)		—			—
Net asset value at end of period	$	17.78		$	16.84		$	28.74		$	30.08		$	27.41		$	26.47
Total return(B)		5.58	%(C)		(9.41	%)		16.27	%		20.62	%		3.55	%		10.99	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	151		$	457		$	1,722		$	3,671		$	6,671		$	10,949
Ratio to average net assets:
Net expenses		1.99	%(D)		1.99	%		2.00	%		1.79	%		1.68	%		1.45	%
Gross expenses		9.07	%(D)		3.78	%		2.27	%		1.79	%		1.68	%		1.45	%
Net investment income (loss)		0.63	%(D)		(0.44	%)		(0.40	%)		(0.50	%)		0.00	%(F)		(0.12	%)
Portfolio turnover rate		27	%(C)		304	%		98	%		92	%		109	%(E)		91	%

^(A) The net investment income (loss) per share is based on average shares outstanding for the period.

^(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 purchases and sales of the Fifth Third Quality Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

^(F) Less than 0.005%.

See accompanying Notes to Financial Statements.

 66

Financial Highlights (Continued)

Touchstone Sustainability and Impact Equity Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	16.47		$	28.32		$	29.72		$	27.17		$	26.31		$	23.84
Income (loss) from investment operations:
Net investment income (loss)		0.05	(A)		(0.08	)(A)		(0.12	)		(0.21	)		(0.08	)		(0.16	)(A)
Net realized and unrealized gains (losses) on investments		0.87			(1.75	)		4.50			5.62			0.94			2.63
Total from investment operations		0.92			(1.83	)		4.38			5.41			0.86			2.47
Distributions from:
Realized capital gains		—			(10.02	)		(5.78	)		(2.86	)		—			—
Net asset value at end of period	$	17.39		$	16.47		$	28.32		$	29.72		$	27.17		$	26.31
Total return(B)		5.59	%(C)		(9.41	%)		16.30	%		20.35	%		3.27	%		10.36	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	53,521		$	56,435		$	103,861		$	111,631		$	107,572		$	116,350
Ratio to average net assets:
Net expenses		1.99	%(D)		1.99	%		2.00	%		1.98	%		1.97	%		2.00	%
Gross expenses		2.15	%(D)		2.15	%		2.03	%		2.04	%		2.08	%		2.09	%
Net investment income (loss)		0.63	%(D)		(0.44	%)		(0.40	%)		(0.69	%)		(0.28	%)		(0.67	%)
Portfolio turnover rate		27	%(C)		304	%		98	%		92	%		109	%(E)		91	%

Touchstone Sustainability and Impact Equity Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	September
	30,
	2016			Year Ended March 31,
	(Unaudited)			2016			2015			2014			2013			2012
Net asset value at beginning of period	$	19.49		$	31.49		$	32.23		$	29.07		$	28.09		$	25.19
Income (loss) from investment operations:
Net investment income		0.16	(A)		0.13	(A)		0.22			0.09			0.18			0.09	(A)
Net realized and unrealized gains (losses) on investments		1.03			(2.06	)		4.92			6.06			1.00			2.81
Total from investment operations		1.19			(1.93	)		5.14			6.15			1.18			2.90
Distributions from:
Net investment income		—			(0.05	)		(0.10	)		(0.13	)		(0.20	)		—
Realized capital gains		—			(10.02	)		(5.78	)		(2.86	)		—			—
Total distributions		—			(10.07	)		(5.88	)		(2.99	)		(0.20	)		—
Net asset value at end of period	$	20.68		$	19.49		$	31.49		$	32.23		$	29.07		$	28.09
Total return		6.11	%(C)		(8.54	%)		17.48	%		21.62	%		4.32	%		11.47	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	93,177		$	67,638		$	416,741		$	577,708		$	523,413		$	385,411
Ratio to average net assets:
Net expenses		0.99	%(D)		0.99	%		0.99	%		0.97	%		0.96	%		0.99	%
Gross expenses		1.12	%(D)		1.14	%		1.00	%		1.05	%		1.08	%		1.14	%
Net investment income		1.63	%(D)		0.56	%		0.61	%		0.32	%		0.72	%		0.34	%
Portfolio turnover rate		27	%(C)		304	%		98	%		92	%		109	%(E)		91	%

^(A) The net investment income (loss) per share is based on average shares outstanding for the period.

^(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 purchases and sales of the Fifth Third Quality Growth Fund acquired on September 10, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

 67

Financial Highlights (Continued)

Touchstone Sustainability and Impact Equity Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended			Period
	September 30,			Ended
	2016			March 31,
	(Unaudited)			2016(A)
Net asset value at beginning of period	$	19.50		$	31.44
Income (loss) from investment operations:
Net Investment income		0.17	(B)		0.11	(B)
Net realized and unrealized gains (losses) on investments		1.03			(1.98	)
Total from investment operations		1.20			(1.87	)
Distributions from:
Net investment income		—			(0.05	)
Realized capital gains		—			(10.02	)
Total distributions		—			(10.07	)
Net asset value at end of period	$	20.70		$	19.50
Total return		6.15	%(C)		(8.49	%)(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	15,182		$	6,843
Ratio to average net assets:
Net expenses		0.89	%(D)		0.89	%(D)
Gross expenses		1.15	%(D)		1.48	%(D)
Net investment income		1.73	%(D)		0.66	%(D)
Portfolio turnover rate		27	%(C)		304	%(C)

^(A) Represents the period from commencement of operations (May 4, 2015) through March 31, 2016.

^(B) The net investment income per share is based on average shares outstanding for the period.

^(C) Not annualized.

^(D) Annualized.

See accompanying Notes to Financial Statements.

 68

Notes to Financial Statements

September 30, 2016 (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 pursuant to an Agreement and Declaration of Trust dated November 18, 1982. The Trust consists of twenty funds, including the following nine funds (individually, a “Fund”, and collectively, the “Funds”):

Touchstone Flexible Income Fund (“Flexible Income Fund”)

Touchstone Focused Fund (“Focused Fund”)

Touchstone Growth Opportunities Fund (“Growth Opportunities Fund”)

Touchstone International Growth Fund (“International Growth Fund”)

Touchstone International Value Fund (“International Value Fund”)

Touchstone Mid Cap Growth Fund (“Mid Cap Growth Fund”)

Touchstone Sands Capital Emerging Markets Growth Fund (“Sands Capital Emerging Markets Growth Fund”)

Touchstone Small Cap Growth Fund (“Small Cap Growth Fund”)

Touchstone Sustainability and Impact Equity Fund (“Sustainability and Impact Equity Fund”)

Each Fund is diversified, with the exception of the Focused Fund, the Growth Opportunities Fund and the Sands Capital Emerging Markets Growth Fund, which are non-diversified.

The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest of each Fund. The table below indicates the classes of shares that each Fund is registered to offer:

					Institutional
	Class A	Class B	Class C	Class Y	Class
Flexible Income Fund	X	—	X	X	X
Focused Fund	X	—	X	X	X
Growth Opportunities Fund	X	—	X	X	X
International Growth Fund	X	—	X	X	X
International Value Fund	X	—	X	X	X
Mid Cap Growth Fund	X	X	X	X	X
Sands Capital Emerging Markets Growth Fund	—	—	—	X	X
Small Cap Growth Fund	X	—	X	X	X
Sustainability and Impact Equity Fund	X	X	X	X	X

Class B shares are closed to new investors and subsequent purchases. 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 goals, 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:

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

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

 69

Notes to Financial Statements (Unaudited) (Continued)

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

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

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

The aggregate value by input level, as of September 30, 2016, 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 allocation or sector allocation. The Funds did not hold any Level 3 categorized securities during the six months ended September 30, 2016.

Changes in valuation techniques may result in transfers into or out of an investment’s assigned level within the hierarchy. All transfers in and out of the levels are recognized at the value at the end of the period. During the six months ended September 30, 2016, there were no transfers between Levels 1, 2 and 3 for all Funds, except as shown in the Portfolio of Investments for the International Value Fund and Sustainability and Impact Equity Fund.

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

Debt securities held by the Funds are valued at their evaluated bid by an independent pricing service or at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities. Independent pricing services use information provided by market makers or estimates of market values through accepted market modeling conventions. Observable inputs to the models may include prepayment speeds, pricing spread, yield, trade information, dealer quotes, market color, cash flow models, the securities’ terms and conditions, among others, and are generally categorized in Level 2. Debt securities with a remaining maturity of 60 days or less may be valued at amortized cost, provided such amount approximates market value and are categorized in Level 2. While this method provides consistency in valuation (and may only be used if it approximates market value), it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received if the Fund sold the investment.

Foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of regular trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available and categorized in Level 2.

Securities mainly traded on a non-U.S. exchange or denominated in foreign currencies are generally valued according to the preceding closing values on that exchange, translated to U.S. dollars using currency exchange

 70

Notes to Financial Statements (Unaudited) (Continued)

rates as of the close of regular trading on the NYSE, and are generally categorized in Level 1. However, if an event that may change the value of a security occurs after the time that the closing value on the non-U.S. exchange was determined, but before the close of regular trading on the NYSE, the security may be priced based on fair value and generally categorized in Level 2. This may cause the value of the security, if held on the books of a Fund to be different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV.

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

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

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

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

· If the validity of market quotations is not reliable.

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

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

Securities sold short — The Flexible Income Fund may engage in selling securities short, which obligates a Fund to replace a security borrowed by purchasing the same security at the current market value. A Fund would incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. A Fund would realize a gain if the price of the security declines between those dates. As of September 30, 2016, the Flexible Income Fund did not hold any securities sold short.

Options — The Flexible Income Fund may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Fund intends to purchase), against fluctuations in fair value caused by changes in prevailing market interest rates or foreign currency exchange rates and against changes in overall equity market volatility. In addition, the Fund may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Fund’s option strategy primarily focuses on the use of writing and/or purchasing call or put options on equity indexes. When the Fund writes or purchases an option, an amount equal to the premium received or paid by the Fund is recorded as a liability or an asset and is subsequently adjusted to the current market value of the option written or purchased. Premiums received or paid from writing or purchasing options which expire unexercised are treated by the Fund on the expiration

 71

Notes to Financial Statements (Unaudited) (Continued)

date as realized gains or losses. The difference between the premium and the amount paid or received on effecting a closing purchase or sale transaction, including brokerage commissions, is also treated as a realized gain or loss. If an option is exercised, the premium paid or received is added to the cost of the purchase or proceeds from the sale in determining whether the Fund has realized a gain or loss on investment transactions. The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an option, bears the risk that the counterparties to the option may not have the ability to meet the terms of the option contracts. There is minimal counterparty credit risk involved in entering into option contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default. As of September 30, 2016, the Flexible Income Fund did not hold any options.

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

When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contract. Risks of entering into futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying instruments. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that the Fund could lose more than the original margin deposit required to initiate the futures transaction. Finally, the risk exists that losses could exceed amounts disclosed on the Statements of Assets and Liabilities. There is minimal counterparty credit risk involved in entering into futures contracts since they are exchange-traded instruments and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. As of September 30, 2016, the Flexible Income Fund held futures contracts as shown in the Portfolio of Investments and had cash in the amount of $1,283,489 held as collateral for futures.

Swap Contracts — The Flexible Income Fund may enter into swap transactions to help enhance the value of its portfolio or manage its exposure to different types of investments. Swaps are financial instruments that typically involve the exchange of cash flows between two parties on specified dates (settlement dates), where the cash flows are based on agreed-upon prices, rates, indexes, etc. The nominal amount on which the cash flows are calculated is called the notional amount. Swaps are individually negotiated and structured to include exposure to a variety of different types of investments or market factors, such as interest rates, foreign currency rates, mortgage securities, corporate borrowing rates, security prices, indexes or inflation rates.

Swap agreements may increase or decrease the overall volatility of the investments of the Fund and its share price. The performance of swap agreements may be affected by a change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from the Fund. If a swap agreement calls for payments by the Fund, the Fund must be prepared to make such payments when due. In addition, if the counterparty’s creditworthiness declines, the value of a swap agreement would be likely to decline, potentially resulting in losses.

 72

Notes to Financial Statements (Unaudited) (Continued)

Generally, bilateral swap agreements, over-the-counter (“OTC”) swaps, have a fixed maturity date that will be agreed upon by the parties. The agreement can be terminated before the maturity date only under limited circumstances, such as default by one of the parties or insolvency, among others, and can be transferred by a party only with the prior written consent of the other party. The Fund may be able to eliminate its exposure under a swap agreement either by assignment or by other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. If the counterparty is unable to meet its obligations under the contract, declares bankruptcy, defaults or becomes insolvent, the Fund may not be able to recover the money it expected to receive under the contract.

Centrally cleared swaps are transacted through futures commission merchants that are members of central clearinghouses with the clearinghouses serving as a central counterparty. Pursuant to rules promulgated under the Dodd-Frank Act, central clearing of swap agreements is currently required for certain market participants trading certain instruments, and central clearing for additional instruments is expected to be implemented by regulators until the majority of the swaps market is ultimately subject to central clearing.

Swaps are marked-to-market daily based upon values received from third party vendors or quotations from market makers. For OTC swaps, any upfront premiums paid or received are recorded as assets or liabilities, respectively, and are shown as premium paid on swap agreements or premium received on swap agreements in the Statements of Assets and Liabilities. For swaps that are centrally cleared, initial margins, determined by each relevant clearing agency, are posted and segregated at a broker account registered with the Commodity Futures Trading Commission (“CFTC”), or the applicable regulator. The change in value of swaps, including accruals of periodic amounts of interest to be paid or received on swaps, is recorded as unrealized appreciation or depreciation. Daily changes in the value of centrally cleared swaps are recorded on the Statements of Assets and Liabilities as receivable or payable for variation margin on swap agreements and settled daily. Upfront premiums and liquidation payments received or paid are recorded as realized gains or losses at the termination or maturity of the swap. Net periodic payments received or paid by the Fund are recorded as realized gain or loss.

A swap agreement can be a form of leverage, which can magnify the Fund’s gains or losses. In order to reduce the risk associated with leveraging, the Fund may cover its current obligations under swap agreements according to guidelines established by the SEC. If the Fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the Fund’s accrued obligations under the swap agreement over the accrued amount the Fund is entitled to receive under the agreement. If the Fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the Fund’s accrued obligations under the agreement.

As of September 30, 2016, the Flexible Income Fund did not hold any swap contracts.

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

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

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

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

Forward foreign currency contracts — A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls

 73

Notes to Financial Statements (Unaudited) (Continued)

for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral, the risk that currency movements will not occur thereby reducing a Fund’s total return, and the potential for losses in excess of a Fund’s initial investment.

The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked to market daily and the change in value is recorded by a Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.

During the six months ended September 30, 2016, the Flexible Income Fund used forward foreign currency contracts to enhance potential gains, hedge against anticipated currency exchange rates, maintain diversity and liquidity of the portfolio and adjust exposure to foreign currencies.

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

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

When entering into a derivative transaction, the Fund may be required to post and maintain collateral or margin (including both initial and maintenance margin). Collateral and margin requirements differ by type of derivative. Margin requirements are established by the broker or clearing house for exchange traded and centrally cleared derivatives (financial futures contracts, options, and centrally cleared swaps). Brokers can ask for margining in excess of the clearing house’s minimum in certain circumstances. Collateral terms are contract specific for OTC derivatives (foreign currency exchange contracts, options, and swaps). For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Portfolio of Investments. To the extent amounts due to the Fund

 74

Notes to Financial Statements (Unaudited) (Continued)

from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance.

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

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

As of September 30, 2016, the Flexible Income Fund’s assets and liabilities that were subject to a MNA on a gross basis were as follows:

	Assets		Liabilities
Flexible Income Fund
Forward Foreign Currency Contracts	$	244,845	$	(243,902	)
Futures Contracts		72,655		(239,292	)
Total gross amount of assets and liabilities subject to MNA	$	317,500	$	(483,194	)

The following table presents the Flexible Income Fund’s assets net of amounts available for offset under a MNA and net of the related collateral pledged to the Fund as of September 30, 2016:

		Gross
		Amount
		of		Gross Amount Available			Non-Cash		Cash
	Derivative	Recognized		for Offset in Statement of			Collateral		Collateral		Net
Counterparty	Type	Assets		Assets and Liabilities			Received		Received		Amount(A)
ANZ Capital Markets	Forward Foreign Currency Contracts	$	164,858	$	(125,553	)	$	—	$	—	$	39,305
Morgan Stanley	Forward Foreign Currency Contracts		79,987		(79,987	)		—		—		—
Wells Fargo	Futures Contracts		72,655		(72,655	)		—		—		—

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

The following table presents the Flexible Income Fund’s liabilities net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of September 30, 2016:

		Gross
		Amount
		of		Gross Amount Available			Non-Cash		Cash
	Derivative	Recognized		for Offset in Statement of			Collateral		Collateral			Net
Counterparty	Type	Liabilities		Assets and Liabilities			Pledged		Pledged			Amount(A)
ANZ Capital Markets	Forward Foreign Currency Contracts	$	125,553	$	(125,553	)	$	—	$	—		$	—
Morgan Stanley	Forward Foreign Currency Contracts		118,349		(79,987	)		—		—			38,362
Morgan Stanley	Futures Contracts		15,300		—			—		(15,300	)		—
Wells Fargo	Futures Contracts		223,992		(72,655	)		—		(151,337	)		—

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

 75

Notes to Financial Statements (Unaudited) (Continued)

The following table sets forth the fair value of the Flexible Income Fund’s derivative financial instruments by primary risk exposure as of September 30, 2016:

Fair Value of Derivative Investments As of September 30, 2016
	Derivatives not accounted for as hedging	Asset		Liability
Fund	instruments under ASC 815	Derivatives		Derivatives
Flexible Income Fund	Forward Foreign Currency Contracts*	$	244,845	$	243,902
	Futures - Interest Rate Contracts**		72,655		239,292

* Statements of Assets and Liabilities Location: Unrealized appreciation on forward foreign currency contracts and unrealized depreciation on forward foreign currency contracts, respectively.

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

The following table sets forth the effect of the Flexible Income Fund’s derivative financial instruments by primary risk exposure on the Statements of Operations for the six months ended September 30, 2016:

The Effect of Derivative Investments on the Statement of Operations for the Six Months Ended September 30, 2016
					Change in
					Unrealized
		Realized Gain			Appreciation
	Derivatives not accounted for as hedging	(Loss)			(Depreciation)
Fund	instruments under ASC 815	on Derivatives			on Derivatives
Flexible Income Fund	Forward - Foreign Currency Contracts*	$	(3,556,464	)	$	1,552,057
	Futures - Interest Rate Contracts**		(486,370	)		(166,637	)
	Written Options - Equity Contracts***		454,017			—
	Swap Agreements - Credit Contracts****		(328,465	)		—

* Statements of Operations Location: Net realized gains (losses) on foreign currency transactions and net change in unrealized appreciation (depreciation) on foreign currency transactions, respectively.

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

*** Statements of Operations Location: Net realized gains on written options.

**** Statements of Operations Location: Net realized losses on swap agreements.

For the six months ended September 30, 2016, the average quarterly balance of outstanding value of derivative financial instruments for the Flexible Income Fund was as follows:

	Flexible
	Income
	Fund
Equity contracts:
Purchased Options - Cost	$	106,664
Written Options - Premiums Received	$	19,166
Interest rate contracts:
Futures - Average notional value	$	121,324,186
Credit Contracts:
Credit Default Swaps - Average notional value	$	10,000,000
Forward foreign currency contracts:
Average number of contracts		10
Average U.S. dollar amount purchased	$	29,526,915
Average U.S. dollar amount sold	$	29,791,970

 76

Notes to Financial Statements (Unaudited) (Continued)

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

As of September 30, 2016, the following Funds loaned securities and received collateral as follows:

		Market
		Value of		Market Value
		Securities		of Collateral
Fund	Security Type	Loaned*		Received**		Net Amount
Flexible Income Fund	Corporate Bond	$	13,943,084	$	14,578,138	$	635,054
	Preferred Stocks		575,668		586,625		10,957
Total Flexible Income Fund			14,518,752		15,164,763		646,011
Growth Opportunities Fund	Common Stock		2,508,072		2,567,319		59,247
International Growth Fund	Common Stock		417,894		426,781		8,887
Mid Cap Growth Fund	Common Stock		394,946		401,200		6,254
Small Cap Growth Fund	Common Stock		33,465,503		34,163,476		697,973

* The remaining contractual maturity is overnight for all securities.

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

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

Funds participating in securities lending receive compensation in the form of fees. Securities lending income is derived from lending long securities from the Funds to creditworthy approved borrowers at rates that are determined based on trading volumes, float, short-term interest rates and market liquidity. When a Fund lends securities, it retains the interest or dividends on the investment of any cash received as collateral, and the Fund continues to receive interest or dividends on the loaned securities.

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

Share valuation — The NAV 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 NAV per share plus a sales load equal to 6.10% of the NAV (or 5.75% of the offering price). There is no sales load on purchases of $1 million or more of Class A shares. The maximum offering price per share of Classes B, C, Y, and Institutional Class shares of the Funds is equal to the NAV per share.

The redemption price per share of each class of shares of the Funds is generally equal to the NAV 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 1.00% if redeemed within a one-year period from the date of purchase. Class B shares of the Funds are subject to a CDSC of 5.00% in the event of a shareholder redemption within a one-year

 77

Notes to Financial Statements (Unaudited) (Continued)

period of purchase. The CDSC will be incrementally reduced over time. After the 6th year, there is no CDSC. Additionally, Class C shares of the Funds are subject to a CDSC of 1.00%. The CDSC will be assessed on an amount equal to the lesser of (1) the NAV at the time of purchase of the shares being redeemed or (2) the NAV of such shares being redeemed, 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. Realized gains and losses resulting from principal paydowns on mortgage-backed and asset-backed securities are included in interest income. Market discounts, original issues discount (“OID”) and market premiums on debt securities are accreted/amortized to interest income over the life of the security with a corresponding adjustment in the cost basis of that security. In addition, it is the Funds’ policy to accrue for foreign capital gains taxes, if applicable, on certain foreign securities held by the Funds. An estimated foreign capital gains tax is recorded daily on net unrealized gains on these securities and is payable upon the sale of such securities when a gain is realized.

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

Allocations — Investment income earned, realized capital gains and losses, and unrealized appreciation and depreciation for a Fund 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 the Funds in the Trust, and, if applicable, Touchstone Funds Group Trust, Touchstone Institutional Funds Trust, Touchstone Investment Trust, Touchstone Tax-Free Trust, and Touchstone Variable Series Trust (collectively with the Trust, “Touchstone Fund Complex”), daily in relation to net assets of each Fund or another reasonable measure.

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

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

 78

Notes to Financial Statements (Unaudited) (Continued)

3. Investment Transactions

Investment transactions (excluding short-term investments and U.S. Government securities) were as follows for the six months ended September 30, 2016:

	Flexible				Growth
	Income		Focused		Opportunities
	Fund		Fund		Fund
Purchases of investment securities	$	341,419,654	$	146,933,884	$	130,338,803
Proceeds from sales and maturities	$	204,142,539	$	90,418,273	$	159,259,512

	International		International		Mid Cap
	Growth		Value		Growth
	Fund		Fund		Fund
Purchases of investment securities	$	13,455,791	$	2,689,519	$	343,115,049
Proceeds from sales and maturities	$	3,056,453	$	19,700,276	$	432,912,870

	Sands Capital
	Emerging				Sustainability
	Markets		Small Cap		and Impact
	Growth		Growth		Equity
	Fund		Fund		Fund
Purchases of investment securities	$	126,932,630	$	163,983,325	$	78,385,655
Proceeds from sales and maturities	$	66,046,128	$	319,411,165	$	73,910,027

For the six months ended September 30, 2016, purchases and proceeds from sales and maturities in U.S. Government securities were $178,918,911 and $159,773,000 for the Flexible Income Fund, respectively.

4. Transactions with Affiliates and Other Related Parties

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

On behalf of the Funds, the Advisor pays each Independent Trustee a quarterly retainer plus additional retainers to the Lead Independent Trustee and the chairs of each standing committee. Interested Trustees do not receive compensation from the Funds. Each Independent Trustee also receives compensation for each board meeting and committee meeting attended. Each standing committee chair receives additional compensation for each committee meeting that he or she oversees. The Advisor is reimbursed by the Funds for the Independent Trustees’ compensation and out-of-pocket expenses relating to their services. The Funds accrued Trustee-related expenses of $72,342 for the six months ended September 30, 2016.

 79

Notes to Financial Statements (Unaudited) (Continued)

MANAGEMENT & EXPENSE LIMITATION AGREEMENTS

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

Flexible Income Fund	0.70% on the first $500 million
	0.60% on such assets in excess of $500 million
Focused Fund	0.70% on the first $100 million
	0.65% on the next $400 million
	0.60% on such assets in excess of $500 million
Growth Opportunities Fund	0.75% on the first $500 million
	0.70% on the next $500 million
	0.65% on such assets in excess of $1 billion
International Growth Fund	0.90% on the first $500 million
	0.85% on the next $1 billion
	0.80% on such assets in excess of $1.5 billion
International Value Fund	1.00%
Mid Cap Growth Fund	0.75% on the first $500 million
	0.70% on the next $500 million
	0.65% on such assets in excess of $1 billion
Sands Capital Emerging Markets Growth Fund	1.15%
Small Cap Growth Fund	1.00% on the first $300 million
	0.95% on such assets in excess of $300 million
Sustainability and Impact Equity Fund	0.75% on the first $200 million
	0.70% on the next $800 million
	0.65% on such assets in excess of $1 billion

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

Apex Capital Management*	Rockefeller & Co., Inc.
Small Cap Growth Fund	Sustainability and Impact Equity Fund
International Growth Fund	Sands Capital Management, LLC
Barrow, Hanley, Mewhinney & Strauss, LLC	Sands Capital Emerging Markets Growth Fund
International Value Fund	Westfield Capital Management Company, L.P.
ClearArc Capital, Inc.	Growth Opportunities Fund
Flexible Income Fund	Mid Cap Growth Fund
Fort Washington Investment Advisors, Inc.**
Focused Fund

*Apex Capital Management, Inc. was acquired by Fiera Capital, Inc. Apex Capital Management is a trade name used by Fiera Capital, Inc.

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

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

The Advisor entered into an expense limitation agreement (the “Expense Limitation Agreement”) to contractually limit the annual operating expenses of the Funds, excluding: dividend and interest expenses relating to short sales; interest; taxes; brokerage commissions and other transaction costs; portfolio transactions and investment related expenses; other expenditures which are capitalized in accordance with U.S. GAAP; the cost of “Acquired Fund Fees and Expenses”; if any, and other extraordinary expenses not incurred in the ordinary course of business.

 80

Notes to Financial Statements (Unaudited) (Continued)

The maximum annual operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to separately waive class-level expenses, advisory fees and administration fees, and to reimburse expenses in order to maintain expense limitations for the Funds:

													Institutional
	Class A			Class B			Class C			Class Y			Class
Flexible Income Fund		1.09	%		—			1.84	%		0.84	%		0.74	%
Focused Fund		1.20	%		—			1.95	%		0.95	%		0.83	%
Growth Opportunities Fund		1.24	%		—			1.99	%		0.99	%		0.89	%
International Growth Fund		1.32	%		—			2.07	%		1.07	%		0.97	%
International Value Fund		1.34	%		—			2.09	%		1.09	%		0.99	%
Mid Cap Growth Fund		1.39	%		2.14	%		2.14	%		1.14	%		0.99	%
Sands Capital Emerging Markets Growth Fund		—			—			—			1.49	%		1.39	%
Small Cap Growth Fund		1.44	%		—			2.19	%		1.19	%		1.04	%
Sustainability and Impact Equity Fund		1.24	%		1.99	%		1.99	%		0.99	%		0.89	%

These expense limitations will remain in effect for all Funds through at least July 29, 2017, but can be terminated by a vote of the Board of Trustees of the Trust if it deems the termination to be beneficial to the Fund’s shareholders.

During the six months ended September 30, 2016, the Advisor or its affiliates waived investment advisory fees and administration fees or reimbursed expenses, including distribution fees of the Funds, as follows:

	Investment				Other Operating
	Advisory				Expenses
	Fees		Administration		Reimbursed/
Fund	Waived		Fees Waived		Waived		Total
Flexible Income Fund	$	—	$	385,302	$	95,222	$	480,524
Focused Fund		—		—		196,868		196,868
Growth Opportunities Fund		—		67,125		105,728		172,853
International Growth Fund		38,269		6,323		21,031		65,623
International Value Fund		60,541		24,031		34,521		119,093
Mid Cap Growth Fund		—		—		7,525		7,525
Sands Capital Emerging Markets Growth Fund		—		—		26,257		26,257
Small Cap Growth Fund		—		284,954		110,795		395,749
Sustainability and Impact Equity Fund		—		96,243		116,833		213,076

Under the terms of the Expense Limitation Agreement the Advisor is entitled to recover, subject to approval by the Funds’ Board, such amounts waived or reimbursed for a period of up to three years from the year in which the Advisor reduced its compensation or assumed expenses for the Funds. No recoupment will occur unless a Fund’s operating expenses are below the expense limitation amount in effect at the time of waiver or reimbursement. As of September 30, 2016, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:

	Expiration		Expiration		Expiration		Expiration
	March 31,		March 31,		March 31,		March 31,
Fund	2017		2018		2019		2020		Total
Flexible Income Fund	$	772,157	$	506,352	$	775,043	$	453,127	$	2,506,679
Focused Fund		712,383		502,116		178,123		15,893		1,408,515
Growth Opportunities Fund		317,974		223,185		227,669		138,130		906,958
International Growth Fund		—		—		—		65,608		65,608
International Value Fund		397,344		357,335		327,638		114,039		1,196,356
Mid Cap Growth Fund		—		—		—		6,151		6,151

 81

Notes to Financial Statements (Unaudited) (Continued)

	Expiration		Expiration		Expiration		Expiration
	March 31,		March 31,		March 31,		March 31,
Fund	2017		2018		2019		2020		Total
Sands Capital Emerging Markets Growth Fund	$	—	$	119,351	$	105,154	$	26,257	$	250,762
Small Cap Growth Fund		180,962		313,619		583,974		362,885		1,441,440
Sustainability and Impact Equity Fund		432,998		65,536		372,980		137,042		1,008,556

The Advisor did not recoup any amounts it previously waived or reimbursed during the six months ended September 30, 2016.

ADMINISTRATION AGREEMENT

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

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

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

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

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

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

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

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

TRANSFER AGENT AGREEMENT

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

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

PLANS OF DISTRIBUTION AND SHAREHOLDER SERVICING FEE ARRANGEMENTS

The Trust has adopted distribution plans pursuant to Rule 12b-1 under the 1940 Act for each class of shares it offers that is subject to 12b-1 distribution fees. The plans allow each Fund to pay distribution and other fees for the sale and distribution of its shares and for services provided to shareholders. The fees charged to the Funds are limited to the actual expenses incurred. Under the Class A plan, each Fund offering Class A shares pays an annual fee of up to 0.25% of average daily net assets that are attributable to Class A shares. Under the

 82

Notes to Financial Statements (Unaudited) (Continued)

Class B plan, each Fund offering Class B shares pays an annual fee of up to 1.00% of average daily net assets that are attributable to Class B shares. Under the Class C plan, each Fund offering Class C shares pays an annual fee of up to 1.00% of average daily net assets that are attributable to Class C shares (of which up to 0.75% is a distribution fee and up to 0.25% is a shareholder servicing fee).

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 the Underwriter, the Underwriter earned underwriting and broker commissions on the sale of Class A shares of the Funds. W&S Brokerage Services, Inc., an affiliate of the Underwriter and the Advisor, also earned broker commissions on the sale of Class A shares of the Funds. Listed below are the total underwriting and broker commissions earned by the Underwriter and its affiliates during the six months ended September 30, 2016:

Fund	Amount
Flexible Income Fund	$	18,445
Focused Fund		45,283
Growth Opportunities Fund		7,242
International Value Fund		71
Mid Cap Growth Fund		33,565
Small Cap Growth Fund		3,745
Sustainability and Impact Equity Fund		6,352

In addition, the Underwriter collected CDSC on the redemption of Classes A, B, and C shares of the Funds listed below during the six months ended September 30, 2016:

Fund	Class A		Class B		Class C
Flexible Income Fund	$	—	$	—	$	1,775
Focused Fund		—		—		3,420
Mid Cap Growth Fund		—		—		1,316
Small Cap Growth Fund		—		—		61
Sustainability and Impact Equity Fund		—		—		564

INTERFUND TRANSACTIONS

The Funds may engage in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common Trustees and/or common Officers. During the six months ended September 30, 2016 the Funds did not engage in any Rule 17a-7 transactions under the 1940 Act.

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. It is each Fund’s policy to distribute all of its taxable income and 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.

 83

Notes to Financial Statements (Unaudited) (Continued)

The tax character of distributions paid are as follows:

	Flexible
	Income Fund				Focused Fund
	Year Ended		Year Ended		Year Ended		Year Ended
	March 31,		March 31,		March 31,		March 31,
	2016		2015		2016		2015
From ordinary income	$	12,216,849	$	13,016,300	$	8,434,874	$	4,384,884
From long-term capital gains		—		—		27,791,755		—
Total distributions	$	12,216,849	$	13,016,300	$	36,226,629	$	4,384,884

	Growth				International				Mid Cap
	Opportunities Fund				Value Fund				Growth Fund
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended		Year Ended
	March 31,		March 31,		March 31,		March 31,		March 31,		March 31,
	2016		2015		2016		2015		2016		2015
From ordinary income	$	1,772,322	$	—	$	3,765,519	$	3,787,190	$	8,520,663	$	30,998,259
From long-term capital gains		23,776,825		32,371,941		—		—		61,652,123		68,535,176
Total distributions	$	25,549,147	$	32,371,941	$	3,765,519	$	3,787,190	$	70,172,786	$	99,533,435

	Sands Capital								Sustainability
	Emerging Markets				Small Cap				and Impact Equity
	Growth Fund				Growth Fund				Fund
	Year Ended		Period Ended		Year Ended		Year Ended		Year Ended		Year Ended
	March 31,		March 31,		March 31,		March 31,		March 31,		March 31,
	2016		2015		2016		2015		2016		2015
From ordinary income	$	—	$	—	$	870,393	$	2,738,627	$	54,125,427	$	4,739,291
From long-term capital gains		—		—		3,899,710		2,618,059		116,661,558		127,807,527
Total distributions	$	—	$	—	$	4,770,103	$	5,356,686	$	170,786,985	$	132,546,818

The following information is computed on a tax basis for each item as of March 31, 2016:

	Flexible						Growth			International
	Income			Focused			Opportunities			Value
	Fund			Fund			Fund			Fund
Tax cost of portfolio investments	$	560,302,632		$	1,198,452,351		$	298,929,030		$	51,073,577
Gross unrealized appreciation		10,089,315			200,630,707			31,188,893			1,704,947
Gross unrealized depreciation		(6,437,428	)		(30,694,225	)		(6,021,422	)		(9,314,806	)
Net unrealized (depreciation) on investments		3,651,887			169,936,482			25,167,471			(7,609,859	)
Net unrealized appreciation (depreciation) on foreign currency contracts and translation of other assets and liabilities denominated in foreign currency		(94,641	)		—			—			(4,510	)
Post-October and Qualified Late-Year Losses		—			—			(12,395,567	)		(5,545,202	)
Capital loss carryforwards		(12,989,296	)		—			(509,261	)		(117,302,408	)
Other temporary differences		(2,895	)		—			—			—
Undistributed ordinary income		352,763			7,223,788			—			2,333,680
Undistributed capital gains		—			12,445,539			—			—
Accumulated earnings (deficit)	$	(9,082,182	)	$	189,605,809		$	12,262,643		$	(128,128,299	)

 84

Notes to Financial Statements (Unaudited) (Continued)

				Sands Capital
				Emerging						Sustainability
	Mid Cap			Markets			Small Cap			and Impact
	Growth			Growth			Growth			Equity
	Fund			Fund			Fund			Fund
Tax cost of portfolio investments	$	685,491,483		$	165,528,501		$	664,783,863		$	271,737,605
Gross unrealized appreciation		134,747,830			9,831,116			38,632,859			20,657,903
Gross unrealized depreciation		(14,902,639	)		(9,760,308	)		(58,395,861	)		(24,129,175	)
Net unrealized (depreciation) on investments		119,845,191			70,808			(19,763,002	)		(3,471,272	)
Net unrealized appreciation (depreciation) on translation of other assets and liabilities denominated in foreign currency		—			(3,368	)		—			4,499
Post-October and Qualified Late-Year Losses		(23,739,102	)		(168,033	)		(695,134	)		(13,753,041	)
Capital loss carryforwards		—			(7,587,200	)		(809,083	)		—
Undistributed ordinary income		—			—			—			—
Undistributed capital gains		—			—			1,973,097			—
Accumulated earnings (deficit)	$	96,106,089		$	(7,687,793	)	$	(19,294,122	)	$	(17,219,814	)

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, trust preferred securities and investments in regulated investment companies.

As of March 31, 2016, the Funds had the following capital loss carryforwards for federal income tax purposes:

							No		No
	Short Term Expiring in						Expiration		Expiration
Fund	2017		2018		2019		Short Term *		Long Term *		Total
Flexible Income Fund	$	—	$	—	$	9,461,280	$	1,167,799	$	2,360,217	$	12,989,296
Growth Opportunities Fund		—		509,261		—		—		—		509,261
International Value Fund		46,390,273		70,912,135		—		—		—		117,302,408
Sands Capital Emerging Markets Growth Fund		—		—		—		7,281,473		305,727		7,587,200
Small Cap Growth Fund		809,083		—		—		—		—		809,083

* The Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted on December 22, 2010. The Act made changes to several tax rules impacting the Funds. The provisions of the Act first became effective for the Funds’ fiscal year ended March 31, 2012 and are applicable to all subsequent fiscal years. 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 may be utilized. 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 up to eight years, and carried forward as short-term capital losses, irrespective of the character of the original loss.

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, 2016, the Trust had the following federal tax costs resulting in net unrealized appreciation (depreciation) as follows:

								Net
			Gross		Gross			Unrealized
	Federal Tax		Unrealized		Unrealized			Appreciation
Fund	Cost		Appreciation		Depreciation			(Depreciation)
Flexible Income Fund	$	716,848,367	$	19,645,051	$	(3,148,919	)	$	16,496,132
Focused Fund		1,204,314,751		261,373,029		(26,711,720	)		234,661,309
Growth Opportunities Fund		255,321,778		40,014,948		(5,724,387	)		34,290,561
International Growth Fund		11,166,508		558,267		(350,961	)		207,306
International Value Fund		29,745,829		541,091		(5,348,328	)		(4,807,237	)
Mid Cap Growth Fund		616,299,500		129,655,968		(3,602,872	)		126,053,096
Sands Capital Emerging Markets Growth Fund		210,259,415		32,783,977		(4,556,467	)		28,227,510

 85

Notes to Financial Statements (Unaudited) (Continued)

								Net
			Gross		Gross			Unrealized
	Federal Tax		Unrealized		Unrealized			Appreciation
Fund	Cost		Appreciation		Depreciation			(Depreciation)
Small Cap Growth Fund	$	512,585,441	$	36,311,018	$	(34,809,851	)	$	1,501,167
Sustainability and Impact Equity Fund		279,463,585		26,353,633		(17,769,153	)		8,584,480

The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended March 31, 2013 through 2016) and have concluded that no provision for income tax is required in their financial statements.

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.

7. Principal Risks

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

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

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

Risks Associated with Interest Rate Changes — As interest rates rise, the value of fixed-income securities a Fund owns will likely decrease. The price of debt securities is generally linked to the prevailing market interest rates. In general, when interest rates rise, the price of debt securities falls, and when interest rates fall, the price of debt securities rises. The price volatility of a debt security also depends on its maturity. Longer-term securities are generally more volatile, so the longer the average maturity or duration of these securities, the greater their price risk. Duration is a measure of the expected life, taking into account any prepayment or call features of the security, that is used to determine the price sensitivity of the security for a given change in interest rates.

 86

Notes to Financial Statements (Unaudited) (Continued)

Specifically, duration is the change in the value of a fixed-income security that will result from a 1% change in interest rates, and generally is stated in years. For example, as a general rule a 1% rise in interest rates means a 1% fall in value for every year of duration. Maturity, on the other hand, is the date on which a fixed-income security becomes due for payment of principal. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s NAV.

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

8. Subsequent Events

Subsequent events occurring after the date of this report have been evaluated for potential impact to this report through the date financial statements were issued. There were no subsequent events that necessitated recognition or disclosure on the Funds’ financial statement.

 87

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 is available as an appendix to the most recent Statement of Additional Information, which can be obtained without charge by calling toll free 1.800.543.0407 or by visiting the Touchstone website at TouchstoneInvestments.com or on the Securities and Exchange Commission’s (the “Commission”) website sec.gov. Information regarding how those proxies were voted during the most recent twelve-month period ended June 30 is also available without charge by calling toll free 1.800.543.0407 or on the Commission’s website at sec.gov.

Quarterly Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. 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; or (iii) will be made available to shareholders upon request by calling 1.800.543.0407. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Schedule of Shareholder Expenses

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including reinvested dividends or other distributions; and (2) ongoing costs, including investment advisory fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (April 1, 2016 through September 30, 2016).

Actual Expenses

The first line of the table below for each share class of a Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 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, 2016” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line for each share class of a Fund in the table below is useful in comparing ongoing costs only, and

 88

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (continued)

will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

									Expenses
		Net Expense			Beginning		Ending		Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		September 30,			April 1,		September 30,		September 30,
		2016			2016		2016		2016*
Touchstone Flexible Income Fund
Class A	Actual		1.10	%	$	1,000.00	$	1,041.70	$	5.63	**
Class A	Hypothetical		1.10	%	$	1,000.00	$	1,019.55	$	5.57	**
Class C	Actual		1.85	%	$	1,000.00	$	1,038.50	$	9.45	**
Class C	Hypothetical		1.85	%	$	1,000.00	$	1,015.79	$	9.35	**
Class Y	Actual		0.85	%	$	1,000.00	$	1,042.90	$	4.35	**
Class Y	Hypothetical		0.85	%	$	1,000.00	$	1,020.81	$	4.31	**
Institutional Class	Actual		0.75	%	$	1,000.00	$	1,043.40	$	3.84	**
Institutional Class	Hypothetical		0.75	%	$	1,000.00	$	1,021.31	$	3.80	**
Touchstone Focused Fund
Class A	Actual		1.20	%	$	1,000.00	$	1,057.00	$	6.19
Class A	Hypothetical		1.20	%	$	1,000.00	$	1,019.05	$	6.07
Class C	Actual		1.95	%	$	1,000.00	$	1,052.90	$	10.04
Class C	Hypothetical		1.95	%	$	1,000.00	$	1,015.29	$	9.85
Class Y	Actual		0.93	%	$	1,000.00	$	1,058.50	$	4.80
Class Y	Hypothetical		0.93	%	$	1,000.00	$	1,020.41	$	4.71
Institutional Class	Actual		0.83	%	$	1,000.00	$	1,058.70	$	4.28
Institutional Class	Hypothetical		0.83	%	$	1,000.00	$	1,020.91	$	4.20
Touchstone Growth Opportunities Fund
Class A	Actual		1.24	%	$	1,000.00	$	1,044.20	$	6.35
Class A	Hypothetical		1.24	%	$	1,000.00	$	1,018.85	$	6.28
Class C	Actual		1.99	%	$	1,000.00	$	1,040.40	$	10.18
Class C	Hypothetical		1.99	%	$	1,000.00	$	1,015.09	$	10.05
Class Y	Actual		0.99	%	$	1,000.00	$	1,045.50	$	5.08
Class Y	Hypothetical		0.99	%	$	1,000.00	$	1,020.10	$	5.01
Institutional Class	Actual		0.89	%	$	1,000.00	$	1,046.20	$	4.57
Institutional Class	Hypothetical		0.89	%	$	1,000.00	$	1,020.61	$	4.51
Touchstone International Growth Fund
Class A	Actual		1.32	%	$	1,000.00	$	1,035.00	$	6.73
Class A	Hypothetical		1.32	%	$	1,000.00	$	1,018.45	$	6.68
Class C	Actual		2.07	%	$	1,000.00	$	1,031.00	$	10.54
Class C	Hypothetical		2.07	%	$	1,000.00	$	1,014.69	$	10.45
Class Y	Actual		1.07	%	$	1,000.00	$	1,036.00	$	5.46
Class Y	Hypothetical		1.07	%	$	1,000.00	$	1,019.70	$	5.42
Institutional Class	Actual		0.97	%	$	1,000.00	$	1,036.00	$	4.95
Institutional Class	Hypothetical		0.97	%	$	1,000.00	$	1,020.21	$	4.91

 89

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (continued)

		Net Expense			Beginning		Ending		Expenses Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		September 30,			April 1,		September 30,		September 30,
		2016			2016		2016		2016*
Touchstone International Value Fund
Class A	Actual		1.34	%	$	1,000.00	$	1,012.20	$	6.76
Class A	Hypothetical		1.34	%	$	1,000.00	$	1,018.35	$	6.78
Class C	Actual		2.09	%	$	1,000.00	$	1,008.80	$	10.52
Class C	Hypothetical		2.09	%	$	1,000.00	$	1,014.59	$	10.56
Class Y	Actual		1.09	%	$	1,000.00	$	1,013.50	$	5.50
Class Y	Hypothetical		1.09	%	$	1,000.00	$	1,019.60	$	5.52
Institutional Class	Actual		0.99	%	$	1,000.00	$	1,015.00	$	5.00
Institutional Class	Hypothetical		0.99	%	$	1,000.00	$	1,020.10	$	5.01
Touchstone Mid Cap Growth Fund
Class A	Actual		1.31	%	$	1,000.00	$	1,060.60	$	6.77
Class A	Hypothetical		1.31	%	$	1,000.00	$	1,018.50	$	6.63
Class B	Actual		2.14	%	$	1,000.00	$	1,056.50	$	11.03
Class B	Hypothetical		2.14	%	$	1,000.00	$	1,014.34	$	10.81
Class C	Actual		2.07	%	$	1,000.00	$	1,056.30	$	10.67
Class C	Hypothetical		2.07	%	$	1,000.00	$	1,014.69	$	10.45
Class Y	Actual		1.06	%	$	1,000.00	$	1,061.90	$	5.48
Class Y	Hypothetical		1.06	%	$	1,000.00	$	1,019.75	$	5.37
Institutional Class	Actual		0.98	%	$	1,000.00	$	1,062.30	$	5.07
Institutional Class	Hypothetical		0.98	%	$	1,000.00	$	1,020.16	$	4.96
Touchstone Sands Capital Emerging Markets Growth Fund
Class Y	Actual		1.49	%	$	1,000.00	$	1,112.80	$	7.89
Class Y	Hypothetical		1.49	%	$	1,000.00	$	1,017.60	$	7.54
Class I	Actual		1.39	%	$	1,000.00	$	1,113.70	$	7.37
Class I	Hypothetical		1.39	%	$	1,000.00	$	1,018.10	$	7.03
Touchstone Small Cap Growth Fund
Class A	Actual		1.44	%	$	1,000.00	$	1,030.10	$	7.33
Class A	Hypothetical		1.44	%	$	1,000.00	$	1,017.85	$	7.28
Class C	Actual		2.19	%	$	1,000.00	$	1,026.60	$	11.13
Class C	Hypothetical		2.19	%	$	1,000.00	$	1,014.09	$	11.06
Class Y	Actual		1.19	%	$	1,000.00	$	1,030.60	$	6.06
Class Y	Hypothetical		1.19	%	$	1,000.00	$	1,019.10	$	6.02
Institutional Class	Actual		1.04	%	$	1,000.00	$	1,032.30	$	5.30
Institutional Class	Hypothetical		1.04	%	$	1,000.00	$	1,019.85	$	5.27

 90

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (continued)

		Net Expense			Beginning		Ending		Expenses Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		September 30,			April 1,		September 30,		September 30,
		2016			2016		2016		2016*
Touchstone Sustainability and Impact Equity Fund
Class A	Actual		1.24	%	$	1,000.00	$	1,059.50	$	6.40
Class A	Hypothetical		1.24	%	$	1,000.00	$	1,018.85	$	6.28
Class B	Actual		1.99	%	$	1,000.00	$	1,055.80	$	10.26
Class B	Hypothetical		1.99	%	$	1,000.00	$	1,015.09	$	10.05
Class C	Actual		1.99	%	$	1,000.00	$	1,055.90	$	10.26
Class C	Hypothetical		1.99	%	$	1,000.00	$	1,015.09	$	10.05
Class Y	Actual		0.99	%	$	1,000.00	$	1,061.10	$	5.12
Class Y	Hypothetical		0.99	%	$	1,000.00	$	1,020.10	$	5.01
Institutional Class	Actual		0.89	%	$	1,000.00	$	1,061.50	$	4.60
Institutional Class	Hypothetical		0.89	%	$	1,000.00	$	1,020.61	$	4.51

* 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).

** Excluding dividend and interest expenses on securities sold short, your actual cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.58, $9.40, $4.30 and $3.79, respectively, and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $5.52, $9.30, $4.26 and $3.75, respectively.

Advisory and Sub-Advisory Agreement Approval Disclosure

At a meeting held on November 19, 2015, the Board ofTrustees (the “Board” or “Trustees”) of theTouchstone Strategic Trust (the “Trust”), and by a separate vote, the Independent Trustees of the Trust, approved an amendment to the Investment Advisory Agreement between the Trust and Touchstone Advisors, Inc. (the “Advisor”) adding the Touchstone International Growth Fund (the “Fund”) and also initially approved the Sub-Advisory Agreement with respect to the Fund between the Advisor and Apex Capital Management, Inc. (the “Sub-Advisor”).

In determining whether to approve the continuation of the Investment Advisory Agreement and the Sub-Advisory Agreements, the Advisor furnished information necessary for a majority of the Independent Trustees to make the determination that approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders. The information considered by the Board at the November 2015 meeting included: (1) a comparison of the Fund’s proposed advisory fee and other fees and anticipated total expense ratio with those of comparable funds; (2) performance information for the Sub-Advisor’s separately managed accounts with the same investment strategy to be used by the Sub-Advisor in managing the Fund (the “International SMA”); (3) the Advisor’s and its affiliates’ estimated revenues and costs of providing services to the Fund; and (4) information about the Advisor’s and Sub-Advisor’s personnel.

Prior to voting, the Independent Trustees reviewed the proposed approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement with management and with experienced independent legal counsel and received materials from such counsel discussing the legal standards for their consideration of the proposed approval of the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement. The Independent Trustees also reviewed the proposed approval of the amendment to the Investment

 91

Other Items (Unaudited) (Continued)

Advisory Agreement and the Sub-Advisory Agreement in a private session with independent legal counsel at which no representatives of management were present.

In approving the amendment to the Investment Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services to be provided to the Fund, including the personnel who would be providing such services; (2) the Advisor’s anticipated compensation and profitability; (3) the level of the Fund’s proposed advisory fees and expenses; (4) anticipated economies of scale; and (5) the terms of the Investment Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Advisor Services. The Board considered the level and depth of knowledge of the Advisor, including the professional experience and qualifications of senior personnel. In evaluating the quality of services to be provided by the Advisor, the Board took into account its familiarity with the Advisor’s senior management through Board meetings, discussions and reports during the preceding year. The Board also took into account the Advisor’s compliance policies and procedures. The quality of administrative and other services of comparable funds managed by the Advisor, including the Advisor’s role in coordinating the activities of those funds’ other service providers, was also considered. The Board also considered the Advisor’s relationship with its affiliates and the resources available to them, as well as any potential conflicts of interest.

The Board discussed the Advisor’s effectiveness in monitoring the performance of sub-advisors of other funds and the Advisor’s timeliness in responding to any performance issues. The Board considered the Advisor’s process for monitoring the Sub-Advisor, which will include an examination of both qualitative and quantitative elements of the Sub-Advisor’s organization, personnel, procedures, investment discipline, infrastructure and performance. The Board considered that the Advisor will conduct regular on-site compliance visits with the Sub-Advisor, during which the Advisor will examine a wide variety of factors, such as the financial condition of the Sub-Advisor, the quality of the Sub-Advisor’s systems, the effectiveness of the Sub-Advisor’s disaster recovery programs, trade allocation and execution procedures, compliance with the Sub-Advisor’s policies and procedures, results of regulatory examinations and any other factors that might affect the quality of services to be provided by the Sub-Advisor to the Fund. The Board noted that the Advisor’s compliance monitoring processes also will include quarterly reviews of compliance reports, and that any issues arising from such reports and the Advisor’s compliance visits to the Sub-Advisor will be reported to the Board.

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

Advisor’s Compensation and Profitability. The Board took into consideration the financial condition and anticipated level of profitability of the Advisor and its affiliates and the direct and indirect benefits to be derived by the Advisor and its affiliates from the Advisor’s relationship with the Fund. The Board noted that the Advisor had contractually agreed to waive fees and/or reimburse expenses in order to limit the Fund’s total operating expenses for at least a year following the date on which the Fund commenced operations. The Board also noted that the Advisor would pay the Sub-Advisor’s sub-advisory fee out of the advisory fee the Advisor would receive from the Fund. The Board reviewed the anticipated level of profitability of the Advisor’s relationship with the Fund and whether the Advisor has the financial wherewithal to provide services to the Fund, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board also noted that the Advisor would derive benefits to its reputation and other benefits from its association with the Fund.

The Board recognized that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it would provide to the Fund and the entrepreneurial risk that it would assume as

 92

Other Items (Unaudited) (Continued)

Advisor. Based upon their review, the Trustees concluded that the Advisor’s and its affiliates’ anticipated level of profitability, if any, from their relationship with the Fund was reasonable and not excessive.

Expenses and Performance. The Board compared the Fund’s proposed advisory fee and total expense ratio net of applicable fee waivers and/or expense reimbursements with those of comparable funds. The Board noted that the advisory fee proposed for the Fund was in the fourth quintile of its Morningstar category and peer group and the Fund’s Class A shares’ total expenses, net of fee waivers and/or reimbursements, were in the second quintile of its Morningstar category. The Board noted the Advisor’s explanation for setting the advisory fee in the fourth quintile of its Morningstar category and peer group. The Board took into consideration the performance of the International SMA relative to the MSCI ACWI ex-US Index. The Board also considered the extensive experience of the portfolio managers who would manage the Fund.

The Board noted that the Advisor had contractually agreed to waive a portion of its fees and/or reimburse certain Fund expenses in order to limit the Fund’s operating expenses to targeted levels. The Board further noted that the sub-advisory fees under the Sub-Advisory Agreement would be paid by the Advisor out of the advisory fee it receives from the Fund and noted the impact of such sub-advisory fee on the profitability of the Advisor. Based upon their review, theTrustees concluded that the proposed advisory fee was reasonable in light of the services to be received by the Fund from the Advisor.

Economies of Scale. The Board considered the effect of the Fund’s potential growth and size on its performance and expenses. The Board took into account management’s discussion of the proposed advisory fee structure, which included breakpoints that would reduce the advisory fee rate on assets above specified levels as the Fund’s assets increase. The Board also noted that if the Fund’s assets increase over time, the Fund might realize economies of scale if assets increase proportionally more than certain other expenses.

Conclusion. In considering the approval of the amendment to the Investment Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Trustees evaluated all information available to them. The Board reached the following conclusions regarding the amendment to the Investment Advisory Agreement, among others: (a) the Advisor demonstrated that it possesses the capability and resources to perform the duties required of it under the Investment Advisory Agreement; (b) the Advisor maintains an appropriate compliance program; and (c) the Fund’s proposed advisory fee is reasonable in relation to the fees of similar funds and the services to be provided by the Advisor. Based on their conclusions, the Trustees determined that approval of the amendment to the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.

In initially approving the Fund’s Sub-Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services to be provided to the Fund, including the personnel who would be providing such services; (2) the Sub-Advisor’s proposed compensation; (3) the Sub-Advisor’s past performance with respect to its management of the International SMA; and (4) the terms of the Sub-Advisory Agreement. The Board’s analysis of these factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Services Provided; Investment Personnel. The Board considered information provided by the Advisor regarding the services to be provided by the Sub-Advisor. The Board considered the Sub-Advisor’s level of knowledge and investment style. The Board reviewed the experience and credentials of the investment personnel who would be responsible for managing the investment of portfolio securities with respect to the Fund. The Board also considered the Sub-Advisor’s regulatory and compliance history. The Board noted that the Advisor’s compliance monitoring will include quarterly reviews of compliance reports and annual compliance reviews of the Sub-Advisor and that compliance issues, if any, will be reported to the Board.

 93

Other Items (Unaudited) (Continued)

Sub-Advisor’s Compensation, Profitability and Economies of Scale. The Board took into consideration the financial condition of the Sub-Advisor and any direct and indirect benefits to be derived by the Sub-Advisor and its affiliates from the Sub-Advisor’s relationship with the Fund. In considering the anticipated level of profitability to the Sub-Advisor and its affiliates of the Sub-Advisor’s relationship with the Fund, the Board noted the proposed contractual undertaking of the Advisor to maintain expense limitations for the Fund and also noted that the sub-advisory fee under the Sub-Advisory Agreement would be paid by the Advisor out of the advisory fee that it would receive from the Fund under the Investment Advisory Agreement, and that the sub-advisory fee is negotiated at arm’s length. As a consequence, the anticipated level of profitability to the Sub-Advisor of its relationship with the Fund was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider potential economies of scale in the Sub-Advisor’s management of the Fund to be a substantial factor in its consideration.

Sub-Advisory Fees and Fund Performance. The Board considered that the Fund would pay an advisory fee to the Advisor and that the Advisor would pay a sub-advisory fee to the Sub-Advisor out of the advisory fees it receives from the Fund. The Board considered the amount of the advisory fee to be retained by the Advisor and the amount to be paid to the Sub-Advisor with respect to the various services to be provided by the Advisor and the Sub-Advisor.

The Board considered the Sub-Advisor’s performance record in managing the International SMA. The Board was mindful of the Advisor’s focus on the performance of sub-advisors of other funds and the Advisor’s ways of addressing underperformance. Based upon their review, the Trustees concluded that the Fund’s proposed sub-advisory fee was reasonable in light of the services to be received by the Fund from the Sub-Advisor.

Conclusion. In considering the initial approval of the Sub-Advisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors.The Board reached the following conclusions regarding the Sub-Advisory Agreement, among others: (a) the Sub-Advisor is qualified to manage the Fund’s assets in accordance with the Fund’s investment goal and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the Fund’s proposed advisory fee is reasonable in relation to the fees of similar funds and to the services to be provided by the Advisor and the Sub-Advisor; and (d) the Sub-Advisor’s proposed investment strategies are appropriate for pursuing the investment goal of the Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement was in the best interests of the Fund and its shareholders.

Basis for Board's Approval of New Sub-Advisory Agreements

At a meeting held on May 19, 2016, the Board of the Trust, and by a separate vote, the Independent Trustees of the Trust, approved new sub-advisory agreements between the Advisor and Fiera Capital Inc. (“Fiera” or the “Sub-Advisor”) with respect to the Touchstone International Growth Fund and Touchstone Small Cap Growth Fund (each a “Fund,” and together the “Apex Funds”) (each a “New Sub-Advisory Agreement,” and together the “New Sub-Advisory Agreements”), each a series of the Trust.

The Board was asked to consider approval of the New Sub-Advisory Agreements with Fiera as a result of an impending change in control involving Apex Capital Management, Inc. (“Apex”), the current sub-advisor to the Apex Funds. Management explained that on or about May 31, 2016, Fiera was expected to acquire a 100% interest in Apex through its U.S. subsidiary, Fiera Capital Corporation (the “Transaction”). Management explained that theTransaction would constitute an assignment of the current sub-advisory agreements between the Advisor and Apex (together, the “Prior Sub-Advisory Agreements”) with respect to the Apex Funds. If approved by the Board, the New Sub-Advisory Agreements with Fiera would become effective immediately

 94

Other Items (Unaudited) (Continued)

upon the closing of the Transaction. Management noted that Fiera is expected to conduct business as Apex Capital Management following the closing of the Transaction.

In approving the New Sub-Advisory Agreements with Fiera, the Board considered various factors with respect to the Apex Funds, Fiera and the New Sub-Advisory Agreements, among them: (1) the nature, extent and quality of services to be provided by the Sub-Advisor to the Apex Funds, including the personnel providing such services; (2) the Sub-Advisor’s compensation; and (3) the terms of the New Sub-Advisory Agreements, which are substantially similar to those of the Prior Sub-Advisory Agreements. In considering approval of the New Sub-Advisory Agreements, the Board took into account information and materials that the Board had received and considered in connection with its approval of the renewal of the Prior Sub-Advisory Agreement in November 2015 with respect to the Touchstone Small Cap Growth. That approval, on which the Board voted at its meeting held in person on November 19, 2015, followed a lengthy process during which the Board considered a variety of factors similar to those noted above. The Board’s analysis of the aforementioned factors is set forth below. The Independent Trustees were advised by independent legal counsel throughout the process.

Nature, Extent and Quality of Services Provided; Investment Personnel. The Board considered information provided by the Advisor regarding the services to be provided to the Apex Funds by the Sub-Advisor. The Board noted that, on a periodic basis, the Board meets with portfolio managers of the Sub-Advisor to discuss the Apex Funds’ performance and the Sub-Advisor’s investment processes and strategies. The Board considered the Sub-Advisor’s level of knowledge and investment style. The Board reviewed the experience and credentials of the applicable investment personnel who are responsible for managing the investment of portfolio securities with respect to the Apex Funds. The Board noted that the management team and investment personnel who currently manage the Apex Funds were not expected to change after the Transaction, and that the Advisor did not anticipate any changes in how the Funds would be managed following the Transaction. The Board also took into account the Advisor’s due diligence review of Fiera and its conclusion that the Transaction would have a minimal, if any, impact on the Sub-Advisor’s provision of investment management services to the Apex Funds.

Sub-Advisor’s Compensation. The Board took into consideration the financial condition of the Sub-Advisor and any indirect benefits derived by the Sub-Advisor and its affiliates from the Sub-Advisor’s relationship with the Apex Funds. In considering the anticipated profitability to the Sub-Advisor of its relationship with the Apex Funds, the Board noted that the sub-advisory fees to be paid under the New Sub-Advisory Agreements would be identical to the sub-advisory fees currently paid under the Prior Sub-Advisory Agreements. The Board also noted that the sub-advisory fees under the New Sub-Advisory Agreements would be paid by the Advisor out of the advisory fees that it receives under its Investment Advisory Agreement. As a consequence, the anticipated profitability to the Sub-Advisor of its relationship with the Apex Funds was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider the potential economies of scale in the Sub-Advisor’s management of the Apex Funds to be a substantial factor in its consideration, although the Board noted that the sub-advisory fee schedule for the Touchstone International Growth Fund would continue to contain breakpoints that would reduce the sub-advisory fee rates on assets above specified levels as that Fund’s assets increased.

Sub-Advisory Fees and Fund Performance. The Board took into account that following the Transaction the Apex Funds would continue to pay advisory fees to the Advisor and that the Advisor would continue to pay sub-advisory fees to the Sub-Advisor out of the advisory fees it receives from the Funds. The Board noted that the amounts to be retained by the Advisor and the sub-advisory fees to be paid to the Sub-Advisor would not change as a result of the Transaction. The Board also noted that the Advisor had negotiated the sub-advisory fees with the Sub-Advisor at arm’s-length. The Board took into account the performance of the Touchstone Small Cap Growth Fund through March 31, 2016 and noted that it reviews on a quarterly

 95

Other Items (Unaudited) (Continued)

basis detailed information about each Apex Fund’s performance results, portfolio composition and investment strategies. In considering approval of the New Sub-Advisory Agreements, the Board noted the Advisor’s expertise and resources in monitoring the performance, investment style, and risk-adjusted performance of the Sub-Advisor.

Conclusion. In reaching its decision to approve the New Sub-Advisory Agreements with respect to the Apex Funds, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to the various factors. The Board reached the following conclusions regarding each New Sub-Advisory Agreement, among others: (a) the Sub-Advisor is qualified to manage each Apex Fund’s assets in accordance with the Fund’s investment goals and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) each Apex Fund’s advisory and sub-advisory fees are reasonable relative to the services to be provided by the Advisor and the Sub-Advisor; and (d) the Sub-Advisor’s investment strategies are appropriate for pursuing the investment goals of each Apex Fund. Based on its conclusions, the Board determined that approval of the New Sub-Advisory Agreements with respect to the Apex Funds was in the best interests of the Funds and their shareholders.

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PRIVACY PROTECTION POLICY

We Respect Your Privacy

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

Our Pledge to Our Clients

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

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

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

We Collect the Following Nonpublic Personal Information About You:

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

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

Categories of Information We Disclose and Parties to Whom We Disclose

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

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

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

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

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

· We will not sell your personal information to anyone.

We May Provide Information to Service Your Account

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

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

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

A Member of Western & Southern Financial Group^®

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

 99

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

TSF-54-TST-SAR-1610

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 11/28/2016

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 11/28/2016

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

Terrie A. Wiedenheft, Controller and Treasurer

(principal financial officer)

Date 11/28/2016

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

EX-99.CERT

EX-99.CERT

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

I, Jill T. McGruder, certify that:

1. I have reviewed this report on Form N-CSR of Touchstone Strategic Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 11/28/2016	/s/ Jill T. McGruder
	Jill T. McGruder, President
	(principal executive officer)

Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act

I, Terrie A. Wiedenheft, certify that:

1. I have reviewed this report on Form N-CSR of Touchstone Strategic Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: 11/28/2016	/s/ Terrie A. Wiedenheft
	Terrie A. Wiedenheft, Controller and Treasurer
	(principal financial officer)

EX-99.906 CERT

EX-99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act

I, Jill T. McGruder, President of Touchstone Strategic Trust (the “Registrant”), certify that:

1. The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: 11/28/2016	/s/ Jill T. McGruder
	Jill T. McGruder, President
	(principal executive officer)

I, Terrie A. Wiedenheft, Controller and Treasurer of Touchstone Strategic Trust (the “Registrant”), certify that:

1. The Form N-CSR of the Registrant (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: 11/28/2016	/s/ Terrie A. Wiedenheft
	Terrie A. Wiedenheft, Controller and Treasurer
	(principal financial officer)