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 811-08104

Touchstone Funds Group 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: September 30

Date of reporting period: March 31, 2014

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

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

March 31, 2014

(Unaudited)

Semi-Annual Report

Touchstone Funds Group Trust

Touchstone Arbitrage Fund

Touchstone Emerging Markets Equity Fund

Touchstone Global Real Estate Fund

Touchstone International Fixed Income Fund

Touchstone Merger Arbitrage Fund

Touchstone Mid Cap Fund

Touchstone Mid Cap Value Fund

Touchstone Premium Yield Equity Fund

Touchstone Sands Capital Select Growth Fund

Touchstone Small Cap Core Fund

Touchstone Small Cap Value Fund

Touchstone Total Return Bond Fund

Touchstone Ultra Short Duration Fixed Income Fund

Table of Contents

	Page
Tabular Presentation of Portfolios of Investments	3 - 6
Portfolio of Investments:
Touchstone Arbitrage Fund	7
Touchstone Emerging Markets Equity Fund	11
Touchstone Global Real Estate Fund	13
Touchstone International Fixed Income Fund	15
Touchstone Merger Arbitrage Fund	18
Touchstone Mid Cap Fund	22
Touchstone Mid Cap Value Fund	23
Touchstone Premium Yield Equity Fund	25
Touchstone Sands Capital Select Growth Fund	27
Touchstone Small Cap Core Fund	28
Touchstone Small Cap Value Fund	30
Touchstone Total Return Bond Fund	32
Touchstone Ultra Short Duration Fixed Income Fund	37
Statements of Assets and Liabilities	48 - 55
Statements of Operations	56 - 59
Statements of Changes in Net Assets	60 - 65
Statements of Changes in Net Assets - Capital Stock Activity	66 - 75
Financial Highlights	76 - 107
Notes to Financial Statements	108 - 131
Other Items	132 - 147
Privacy Protection Policy	151

This report identifies the Funds’ investments on March 31, 2014. 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) 

March 31, 2014

Touchstone Arbitrage Fund
Sector Allocation*	(% of Net Assets)
Long Positions
Common Stocks
Information Technology	17.1	%
Consumer Discretionary	14.4
Financials	13.7
Health Care	10.8
Industrials	8.0
Consumer Staples	6.7
Energy	4.7
Utilities	2.9
Materials	2.5
Telecommunication Services	1.7
Preferred Stocks	2.9
Exchange Traded Stocks	2.6
Fixed Income Securities	4.9
Investment Fund	10.2
Cash Collateral for Securities Sold	34.3
Short and Written Options
Other Assets/Liabilities (Net)	(0.9	)
	136.5
Short Positions
Common Stock
Financials	(10.8	)
Consumer Discretionary	(8.0	)
Health Care	(5.5	)
Energy	(4.9	)
Information Technology	(4.4	)
Consumer Staples	(0.8	)
Materials	(0.8	)
Industrials	(0.7	)
Utilities	(0.3	)
Fixed Income Securities	(0.3	)
	(36.5	)
Total	100.0	%
Touchstone Emerging Markets Equity Fund
Sector Allocation*	(% of Net Assets)
Financials	24.6	%
Consumer Discretionary	15.5
Information Technology	12.4
Consumer Staples	11.9
Energy	11.8
Materials	7.6
Telecommunication Services	5.8
Health Care	3.8
Industrials	3.4
Utilities	1.8
Investment Funds	4.6
Other Assets/Liabilities (Net)	(3.2	)
Total	100.0	%
Touchstone Global Real Estate Fund
Sector Allocation*	(% of Net Assets)
Diversified	23.0	%
Retail	18.4
Specialized	17.8
Office	13.4
Industrial	9.9
Mortgage	4.7
Residential	3.5
Real Estate Operating Companies	3.2
Health Care Facilities	2.1
Diversified Financial Services	1.8
Diversified Real Estate Activities	1.5
Real Estate Development	0.9
Investment Funds	7.5
Other Assets/Liabilities (Net)	(7.7	)
Total	100.0	%

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

3

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

Touchstone International Fixed Income Fund
Credit Quality* (% of Investment Securities)
AAA/Aaa	34.5	%
AA/Aa	12.5
A/A	6.4
BBB/Baa	27.4
BB/Ba	5.3
B/B	1.1
NR	12.8
Total	100.0	%
Touchstone Merger Arbitrage Fund
Sector Allocation**	(% of Net Assets)
Long Positions
Common Stocks
Financials	21.2	%
Information Technology	15.4
Consumer Discretionary	10.9
Health Care	7.9
Consumer Staples	6.3
Industrials	6.1
Energy	5.6
Materials	3.7
Utilities	2.3
Telecommunication Services	2.2
Preferred Stocks	2.8
Fixed Income Securities	4.9
Exchange Traded Fund	1.6
Purchased Options	0.1
Investment Fund	16.0
Cash Collateral for Securities Sold	33.4
Short and Written Options
Other Assets/Liabilities (Net)	(2.4	)
	138.0
Short Positions
Financials	(15.5	)
Consumer Discretionary	(6.3	)
Energy	(4.2	)
Health Care	(3.8	)
Information Technology	(3.6	)
Consumer Staples	(1.3	)
Materials	(1.0	)
Utilities	(0.5	)
Industrials	(0.5	)
Exchange Traded Fund	(0.6	)
Fixed Income Securities	(0.6	)
Written Options	(0.1	)
	(38.0	)
Total	100.0	%

* Credit quality may be rated by Standard & Poor’s, Moody’s and Fitch. If all three agencies rate the bond, the middle or common rating is used; if two of the agencies rate the bond, the lower rating is used; if one agency rates the bond, that rating is used, if none of the agencies rate the bond, the bond will be classified as not-rated.

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

4

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

Touchstone Mid Cap Fund
Sector Allocation*		(% of Net Assets)
Consumer Discretionary		24.2	%
Financials		18.5
Consumer Staples		16.6
Materials		11.1
Industrials		10.8
Information Technology		7.6
Energy		6.5
Health Care		3.1
Investment Funds		8.1
Other Assets/Liabilities (Net)		(6.5	)
Total		100.0	%
Touchstone Mid Cap Value Fund
Sector Allocation*	(% of Net Assets)
Financials		22.6	%
Consumer Discretionary		11.9
Industrials		10.9
Information Technology		10.1
Consumer Staples		9.6
Health Care		9.4
Utilities		8.7
Materials		8.0
Energy		7.6
Investment Funds		6.5
Exchange Traded Funds		1.2
Other Assets/Liabilities (Net)		(6.5	)
Total		100.0	%
Touchstone Premium Yield Equity Fund
Sector Allocation*		(% of Net Assets)
Energy		22.4	%
Financials		16.9
Health Care		16.3
Information Technology		13.4
Utilities		11.5
Telecommunication Services		6.1
Materials		5.5
Industrials		3.9
Consumer Discretionary		3.0
Investment Fund		1.0
Other Assets/Liabilities (Net)		0.0
Total		100.0	%
Touchstone Sands Capital Select Growth Fund
Sector Allocation*		(% of Net Assets)
Information Technology		35.4	%
Consumer Discretionary		25.3
Health Care		18.0
Energy		12.1
Materials		3.5
Financials		2.6
Investment Funds		5.5
Other Assets/Liabilities (Net)		(2.4	)
Total		100.0	%

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

5

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

Touchstone Small Cap Core Fund
Sector Allocation*		(% of Net Assets)
Financials		23.0	%
Consumer Discretionary		22.9
Materials		17.6
Industrials		16.0
Information Technology		5.7
Energy		5.0
Consumer Staples		4.5
Health Care		3.8
Investment Funds		14.2
Other Assets/Liabilities (Net)		(12.7	)
Total		100.0	%
Touchstone Small Cap Value Fund
Sector Allocation*	(% of Net Assets)
Financials		26.3	%
Industrials		21.1
Consumer Discretionary		11.8
Information Technology		11.5
Utilities		7.3
Materials		6.9
Energy		6.8
Consumer Staples		3.4
Health Care		0.9
Investment Funds		6.7
Other Assets/Liabilities (Net)		(2.7	)
Total		100.0	%
Touchstone Total Return Bond Fund
Credit Quality** (% of Investment Securities)
Aaa		55.6	%
Aa		5.7
A		13.1
Baa		19.6
Ba		2.7
B		1.6
NR		1.7
Total		100.0	%
Touchstone Ultra Short Duration Fixed Income Fund
Credit Quality** (% of Investment Securities)
AAA		32.0	%
AA		13.7
A		18.6
BBB		25.8
B		0.2
CCC		0.2
NR		9.5
Total		100.0	%

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

** Credit quality may be rated by Standard & Poor’s, Moody’s and Fitch. If all three agencies rate the bond, the middle or common rating is used; if two of the agencies rate the bond, the lower rating is used; if one agency rates the bond, that rating is used, if none of the agencies rate the bond, the bond will be classified as not-rated.

6

Portfolio of Investments 

Touchstone Arbitrage Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 82.5%
Information Technology — 17.1%
Accelrys, Inc.*		572,144	$	7,128,914
ATMI, Inc.*		197,130		6,704,391
AutoNavi Holdings Ltd. ADR*		140,330		2,812,213
Compuware Corp.		250,000		2,625,000
LSI Corp.		725,469		8,030,942
Tokyo Electron Ltd. ADR		395,817		6,190,578
TriQuint Semiconductor, Inc.*		207,886		2,783,594
				36,275,632
Consumer Discretionary — 14.4%
Jones Group, Inc. (The)		206,665		3,093,775
Jos A Bank Clothiers, Inc.*		95,790		6,159,297
Liberty Interactive Corp. - Class A*		54,300		1,567,641
Omnicom Group, Inc.		86,420		6,274,092
Outerwall, Inc.*		39,955		2,896,738
Time Warner Cable, Inc.		33,680		4,620,222
Zale Corp.*		284,220		5,943,040
				30,554,805
Financials — 13.7%
BRE Properties, Inc. REIT		135,040		8,477,811
CapitalSource, Inc.		539,284		7,868,154
Hudson City Bancorp, Inc.		692,800		6,810,224
National Interstate Corp.		88,866		2,382,497
NorthStar Realty Finance Corp. REIT		80,515		1,299,512
Sterling Financial Corp.		67,260		2,241,776
Taylor Capital Group, Inc.*		2,000		47,840
				29,127,814
Health Care — 10.8%
Emeritus Corp.*		194,935		6,128,756
Forest Laboratories, Inc.*		81,000		7,473,870
Hi-Tech Pharmacal Co., Inc.*		141,029		6,110,787
Nordion, Inc. (Canada)*		270,970		3,121,574
				22,834,987
Industrials — 8.0%
Foster Wheeler AG (Switzerland)*		258,510		8,380,894
JetBlue Airways Corp.*		148,610		1,291,421
Schawk, Inc.		361,710		7,230,583
				16,902,898
Consumer Staples — 6.7%
Beam, Inc.		98,700		8,221,710
Safeway, Inc.		79,475		2,935,806
Shoppers Drug Mart Corp. (Canada)		55,770		3,091,889
				14,249,405
Energy — 4.7%
Baytex Energy Corp. (Canada)*		71,270		2,849,511
EPL Oil & Gas, Inc.*		159,650		6,162,490
Noble Energy, Inc.		13,350		948,384
				9,960,385
Utilities — 2.9%
UNS Energy Corp.		102,493		6,152,655
Materials — 2.5%
Ainsworth Lumber Co. Ltd. (Canada)*		900,000		3,116,610
AZ Electronic Materials SA (Luxemburg)		318,100		2,136,117
				5,252,727
Telecommunication Services — 1.7%
Ziggo N.V. (Netherlands)		80,000		3,554,355
Total Common Stocks			$	174,865,663
Preferred Stocks— 2.9%
Financials — 2.6%
Citigroup Capital XIII, 7.88%(A)		4,380		121,501
CommonWealth REIT, 6.50%		53,850		1,352,174
Crown Castle International Corp. REIT, 4.50%		13,100		1,328,209
GMAC Capital Trust I, 8.13%(A)		95,887		2,617,715
Utilities — 0.3%
NextEra Energy, Inc., 5.80%		12,633		682,435
Total Preferred Stocks			$	6,102,034
Exchange Traded Fund — 2.6%
PowerShares Senior Loan Portfolio		223,650		5,548,756

Principal
Amount
		Asset-Backed Security — 0.4%
$	800,000	Taxable Newman Capital Trust, Ser
		2000-1, Class A, 144a,
		7.000%, 7/5/17	830,000
		Corporate Bonds — 4.5%
		Energy — 1.5%
	500,000	Newfield Exploration Co.,
		7.125%, 5/15/18	515,000
	1,450,000	Petrohawk Energy Corp.,
		7.250%, 8/15/18	1,538,450
	1,115,000	Tesoro Corp., 9.750%, 6/1/19	1,186,806
			3,240,256
		Financials — 1.3%
	1,100,000	Omega Healthcare Investors, Inc.,
		6.750%, 10/15/22	1,199,000
	1,120,000	PNC Preferred Funding Trust II, 144a,
		1.456%, 3/29/49(A)	1,064,000
	400,000	Royal Bank of Scotland Group PLC,
		5.000%, 10/1/14	405,491
			2,668,491
		Consumer Staples — 1.1%
	2,125,000	US Foods, Inc., 8.500%, 6/30/19	2,299,250
		Industrial — 0.3%
	655,000	Texas Industries, Inc., 9.250%, 8/15/20	756,525

7

Touchstone Arbitrage Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Corporate Bonds — 4.5% (Continued)
		Materials — 0.3%
$	500,000	Dow Chemical Co. (The),
		8.550%, 5/15/19	$	640,223
		Total Corporate Bonds	$	9,604,745

	Number
	of
	Contracts
Purchased Call Options— 0.0%
National Oilwell VARCO, Inc., Strike
@85.00, Exp 01/15		35			10,150
OPRA Noble Equity Option, Strike
@40.00, Exp 01/15		340			22,100
					32,250
Purchased Put Option— 0.0%
Liberty Interactive Corp. - Class A, Strike
@27.00, Exp 07/14		543			46,155
Total Purchased Options
(Proceeds 125,180)				$	78,405
		Shares
Investment Fund — 10.2%
Touchstone Institutional Money Market Fund, 0.01%^∞Ω		21,596,453			21,596,453
Total Long Positions
(Cost $215,101,401)					218,626,056
Securities Sold Short— (36.5%)
Common Stocks— (36.2%)
Financials — (10.8%)
Crown Castle International Corp. REIT		(3,829	)		(282,504	)
Essex Property Trust, Inc., REIT		(40,121	)		(6,822,576	)
M&T Bank Corp.		(58,218	)		(7,061,843	)
MB Financial, Inc.		(1,240	)		(38,390	)
PacWest Bancorp		(152,995	)		(6,580,315	)
Umpqua Holdings Corp.		(112,348	)		(2,094,167	)
					(22,879,795	)
Consumer Discretionary — (8.0%)
Comcast Corp.- Class A - Class A		(96,830	)		(4,843,437	)
Liberty Global, Inc. - Class A*		(18,256	)		(759,450	)
Liberty Global, Inc. - Series C*		(45,040	)		(1,833,578	)
Matthews International Corp. - Class A		(74,446	)		(3,038,141	)
Publicis Groupe SA (France)		(70,259	)		(6,347,672	)
					(16,822,278	)
Health Care — (5.5%)
Actavis PLC*		(26,778	)		(5,512,251	)
Brookdale Senior Living, Inc.*		(185,187	)		(6,205,616	)
					(11,717,867	)
				Market
	Shares			Value
Energy — (4.9%)
Amec PLC (Great Britain)		(232,606	)		(4,350,965	)
Baytex Energy Corp. (Canada)		(71,270	)		(2,934,609	)
Energy Select Sector SPDR Fund		(10,985	)		(978,324	)
Energy XXI (Bermuda) Ltd.		(93,235	)		(2,197,549	)
					(10,461,447	)
Information Technology — (4.4%)
Applied Materials, Inc.		(321,544	)		(6,565,928	)
RF Micro Devices, Inc.*		(348,209	)		(2,743,887	)
					(9,309,815	)
Consumer Staples — (0.8%)
Loblaw Cos. Ltd. (Canada)		(41,063	)		(1,756,675	)
Materials — (0.8%)
Louisiana-Pacific Corp.*		(102,600	)		(1,730,863	)
Industrials — (0.7%)
Southwest Airlines Co.		(57,717	)		(1,362,698	)
Utilities — (0.3%)
NextEra Energy, Inc.		(5,890	)		(563,202	)
Total Common Stocks				$	(76,604,640	)

Principal
Amount
			U.S. Treasury Obligation — (0.3)%
$	(709,000	)	U.S. Treasury Notes, 0.750%, 2/28/18		(692,660	)
Total Securities Sold Short
(Proceeds $(73,689,734))				$	(77,297,300	)

	Number
	of
	Contracts
Written Call Options— 0.0%
National Oilwell VARCO, Inc., Strike @90.00, Exp 01/15		(35	)		(6,230	)
OPRA Noble Equity Option, Strike @45.00, Exp 01/15		(340	)		(8,500	)
					(14,730	)
Written Put Options— 0.0%
National Oilwell VARCO, Inc., Strike
@60.00, Exp 01/15		(35	)		(4,200	)
Nextera Energy Option, Strike @90.00,
Exp 04/14		(38	)		(760	)
OPRA Noble Equity Option, Strike
@30.00, Exp 01/15		(340	)		(78,880	)
					(83,840	)
Total Written Options
(Proceeds $(134,208))				$	(98,570	)

8

Touchstone Arbitrage Fund (Unaudited) (Continued)

	Market
	Value
Total Investment Securities —66.6%
(Cost $141,277,459)	$	141,230,186
Cash Collateral for Securities
Sold Short and Written Options — 34.3%		72,733,295
Liabilities in Excess of Other Assets — (0.9%)		(1,957,188	)
Net Assets — 100.0%	$	212,006,293

^(A) Variable rate security - Rate reflected is the rate in effect as of March 31, 2014.

* Non-income producing security.

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

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

ADR - American Depositary Receipt

CAD - Canadian Dollar

EUR - Euro

GBP - British Pound

PLC - Public Limited Company

REIT - Real Estate Investment Trust

144a - This is a restricted security that was sold in a transaction exempt from rule 144A of the Securities Act of 1933. This security may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2014, these securities were valued at $1,894,000 or 0.9% 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.

Valuation inputs at Reporting Date: 

Description	Level 1			Level 2			Level 3		Total
Assets:
Common Stocks	$	174,865,663		$	—		$	—	$	174,865,663
Preferred Stocks		6,102,034			—			—		6,102,034
Exchanged Traded Fund		5,548,756			—			—		5,548,756
Asset-Backed Security		—			830,000			—		830,000
Corporate Bonds		—			9,604,745			—		9,604,745
Purchased Options Equity Contracts		78,405			—			—		78,405
Investment Fund		21,596,453			—			—		21,596,453
									$	218,626,056
Liabilities:
Securities Sold Short
Common Stocks	$	(76,604,640	)	$	—		$	—	$	(76,604,640	)
U.S. Treasury Obligations		—			(692,660	)		—		(692,660	)
									$	(77,297,300	)
Other Financial Instruments**
Assets:
Forward Foreign Currency Contracts	$	—		$	4,623		$	—	$	4,623
Liabilities:
Forward Foreign Currency Contracts	$	—		$	(107,593	)	$	—	$	(107,593	)
Equity Contracts		(98,570	)		—			—		(98,570	)
									$	(206,163	)

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

Transactions in written options for the period ended March 31, 2014.

	Number of
	Contracts		Premium
Beginning of Period, September 30, 2013		—	$	—
Call Options Written		375		41,764
Put Options Written		413		92,444
March 31, 2014		788	$	134,208

9

Touchstone Arbitrage Fund (Unaudited) (Continued)

Forward Foreign Currency Exchange Contracts

							Unrealized
		Contract to					Appreciation/
Counterparty	Expiration Date		Receive		Deliver		(Depreciation)
Brown Brothers
Harriman	04/11/2014		USD	1,667,556	CAD	1,850,453	$	(5,880	)
Brown Brothers
Harriman	04/25/2014		CAD	21,112	USD	19,030		56
Brown Brothers
Harriman	04/25/2014		USD	20,114	CAD	21,112		1,028
Brown Brothers
Harriman	04/29/2014		EUR	1,162,500	USD	1,616,375		(14,955	)
Brown Brothers
Harriman	04/29/2014		USD	1,572,398	EUR	1,162,500		(29,022	)
Brown Brothers
Harriman	04/30/2014		USD	1,581,883	CAD	1,746,000		3,539
Brown Brothers
Harriman	04/30/2014		USD	2,092,030	GBP	1,283,533		(47,334	)
Brown Brothers
Harriman	07/31/2014		USD	1,201,772	EUR	880,000		(10,402	)
							$	(102,970	)

See accompanying Notes to Financial Statements.

10

Portfolio of Investments 

Touchstone Emerging Markets Equity Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 98.6%
Brazil — 11.2%
Banco Bradesco SA (Preference)		593,730	$	8,132,714
Gerdau SA (Preference)		501,828		3,206,923
Localiza Rent A Car SA		137,500		1,996,144
Lojas Americanas SA (Preference)		898,548		6,617,337
Odontoprev SA		1,699,993		6,825,446
Petroleo Brasileiro SA (Preference)		419,019		2,899,338
Totvs SA		349,667		5,421,457
Vale SA ADR†		150,956		2,087,721
Vale SA (Preference)		312,467		3,897,231
				41,084,311
Korea — 11.2%
BS Financial Group, Inc.		431,407		6,099,559
Kia Motors Corp.		102,809		5,727,440
POSCO		15,309		4,257,094
Samsung Electronics Co. Ltd.		12,710		16,036,009
Shinhan Financial Group Co. Ltd.		200,687		8,861,186
				40,981,288
India — 10.9%
Bharat Forge Ltd.*		1,038,971		7,337,904
Bharti Airtel Ltd.*		553,995		2,947,497
HCL Technologies Ltd.		152,200		3,544,134
ITC Ltd.		1,197,551		7,075,321
Lupin Ltd.		253,408		3,959,440
Mahindra & Mahindra Ltd.		249,915		4,103,841
Oil & Natural Gas Corp. Ltd.*		1,397,917		7,459,771
Reliance Industries Ltd.		231,551		3,608,625
				40,036,533
Mexico — 7.5%
America Movil SAB de CV, Series L ADR†		195,775		3,892,007
Fomento Economico Mexicano SAB de CV ADR		57,132		5,326,988
Grupo Financiero Banorte SAB de CV - Class O		1,091,038		7,378,327
Kimberly-Clark de Mexico SAB de CV - Class A		1,503,594		4,013,653
Wal-Mart de Mexico SAB de CV - Class A		2,930,755		6,981,462
				27,592,437
China — 6.7%
China BlueChemical Ltd.		7,002,931		3,611,387
Industrial & Commercial Bank of China - Class H		15,235,161		9,369,138
PetroChina Co. Ltd. - Class H		3,217,448		3,505,116
Weichai Power Co. Ltd. - Class H		2,121,579		8,027,893
				24,513,534
South Africa — 6.4%
Aveng Ltd.*		1,076,304		2,316,589
Foschini Group Ltd.		788,375		8,023,782
MTN Group Ltd.		300,295		6,148,232
Woolworths Holdings Ltd.		1,019,889		7,108,611
				23,597,214
Bermuda — 5.8%
Credicorp Ltd.		66,808		9,214,159
First Pacific Co. Ltd.		3,930,064		3,906,503
VTech Holdings Ltd.		615,977		7,917,605
				21,038,267
Hong Kong — 5.6%
China Overseas Land & Investment Ltd.		2,791,459		7,233,717
CNOOC Ltd.		4,269,577		6,418,264
Wharf Holdings Ltd.		1,080,496		6,909,379
				20,561,360
Taiwan — 5.1%
Giant Manufacturing Co. Ltd.		1,030,530		7,004,998
Taiwan Semiconductor Manufacturing Co. Ltd.		3,023,055		11,763,632
				18,768,630
Thailand — 4.3%
Kasikornbank PCL		556,216		3,172,009
PTT Exploration & Production PCL		1,383,269		6,694,613
Siam Cement PCL		106,712		1,368,440
Siam Cement PCL (Non- Voting)		113,725		1,465,384
Thai Oil PCL		1,960,451		3,202,956
				15,903,402
Malaysia — 2.9%
British American Tobacco Malaysia Bhd		358,803		6,495,922
CIMB Group Holdings Bhd		1,856,893		4,065,775
				10,561,697
United Kingdom — 2.8%
SABMiller PLC		204,995		10,235,567
South Korea — 2.4%
Hankook Tire Co. Ltd.		155,128		8,802,416
Turkey — 2.3%
Tupras Turkiye Petrol Rafine		63,199		1,337,998
Turkcell Iletisim Hizmetleri AS*		662,528		3,700,149
Turkiye Garanti Bankasi AS		978,579		3,347,758
				8,385,905
Indonesia — 2.2%
Bank Mandiri Persero Tbk PT		4,061,620		3,420,896
Telekomunikasi Indonesia Persero Tbk PT		24,005,570		4,692,386
				8,113,282
Luxembourg — 2.2%
Tenaris SA ADR*†		182,482		8,074,828
Chile — 1.8%
Enersis SA		21,431,675		6,694,773
Cayman Islands — 1.8%
ASM Pacific Technology Ltd.		89,943		873,165
Daphne International Holdings Ltd.†		4,902,070		1,997,105

11

Touchstone Emerging Markets Equity Fund (Unaudited) (Continued)

			Market
	Shares		Value
Common Stocks — 98.6% (Continued)
Cayman Islands — (Continued)
Tingyi Cayman Islands Holding Corp.		1,242,800	$	3,565,049
				6,435,319
Czech Republic — 1.4%
Komercni Banka A/S		22,074		5,273,043
Jersey — 1.4%
Randgold Resources Ltd. ADR		66,019		4,951,425
Singapore — 1.0%
Keppel Land Ltd.		1,352,589		3,612,926
Israel — 0.9%
Teva Pharmaceutical Industries Ltd. ADR		61,365		3,242,527
Canada — 0.7%
Eldorado Gold Corp.		475,243		2,643,821
United States — 0.1%
Southern Copper Corp.		7,925		230,697
Total Common Stocks			$	361,335,202
Investment Funds— 4.6%
Invesco Government & Agency
Portfolio, Institutional Class,
0.02%**∞Ω		15,337,555		15,337,555
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		1,499,630		1,499,630
Total Investment Funds			$	16,837,185
Total Investment Securities —103.2%
(Cost $376,109,183)			$	378,172,387
Liabilities in Excess of Other Assets — (3.2%)				(11,736,458	)
Net Assets — 100.0%			$	366,435,929

* Non-income producing security.

** Represents collateral for securities loaned.

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

† All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2014 was $15,104,148.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

ADR - American Depositary Receipt

PCL - Public Company Limited

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
Brazil	$	41,084,311	$	—	$	—	$	41,084,311
Korea		40,981,288		—		—		40,981,288
India		40,036,533		—		—		40,036,533
Mexico		27,592,437		—		—		27,592,437
China		24,513,534		—		—		24,513,534
South Africa		23,597,214		—		—		23,597,214
Bermuda		21,038,267		—		—		21,038,267
Hong Kong		20,561,360		—		—		20,561,360
Taiwan		18,768,630		—		—		18,768,630
Thailand		15,903,402		—		—		15,903,402
Malaysia		10,561,697		—		—		10,561,697
United Kingdom		10,235,567		—		—		10,235,567
South Korea		8,802,416		—		—		8,802,416
Turkey		8,385,905		—		—		8,385,905
Indonesia		—		8,113,282		—		8,113,282
Luxembourg		8,074,828		—		—		8,074,828
Chile		6,694,773		—		—		6,694,773
Cayman Islands		6,435,319		—		—		6,435,319
Czech Republic		5,273,043		—		—		5,273,043
Jersey		4,951,425		—		—		4,951,425
Singapore		3,612,926		—		—		3,612,926
Israel		3,242,527		—		—		3,242,527
Canada		2,643,821		—		—		2,643,821
United States		230,697		—		—		230,697
Investment Funds		16,837,185		—		—		16,837,185
							$	378,172,387

At March 31, 2014, equity securities valued at $8,113,282 were transferred from Level 1 to Level 2. Transfers from Level 1 to Level 2 are due to the closure of several foreign markets.

See accompanying Notes to Financial Statements.

12

Portfolio of Investments

Touchstone Global Real Estate Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks — 100.2%
United States — 41.0%
Annaly Capital Management, Inc. REIT†		5,993	$	65,743
Apollo Commercial Real Estate Finance, Inc. REIT		17,625		293,104
Ashford Hospitality Trust, Inc. REIT*		15,070		405,534
AvalonBay Communities, Inc. REIT		543		71,307
Aviv REIT, Inc. REIT		12,058		294,818
Boston Properties, Inc. REIT		932		106,743
Campus Crest Communities, Inc. REIT		29,389		255,097
Chatham Lodging Trust REIT		4,300		86,946
Digital Realty Trust, Inc. REIT†		4,425		234,879
Douglas Emmett, Inc. REIT		1,642		44,564
EPR Properties REIT		5,470		292,043
Equity Residential REIT		728		42,217
Essex Property Trust, Inc. REIT		419		71,251
Extra Space Storage, Inc. REIT		987		47,879
General Growth Properties, Inc. REIT		2,340		51,480
Glimcher Realty Trust*		19,474		490,550
HCP, Inc. REIT		1,136		44,065
Kilroy Realty Corp. REIT		585		34,269
LaSalle Hotel Properties REIT		1,178		36,883
Macerich Co. (The) REIT		650		40,514
Mack-Cali Realty Corp. REIT		12,606		262,079
Omega Healthcare Investors, Inc. REIT†		8,257		276,775
ProLogis, Inc. REIT		1,829		74,678
Public Storage REIT		424		71,440
QTS Realty Trust, Inc. - Class A REIT†		6,050		151,794
Retail Opportunity Investments Corp. REIT		3,763		56,219
Sabra Health Care REIT, Inc. REIT		8,254		230,204
Simon Property Group, Inc. REIT		729		119,556
SL Green Realty Corp. REIT		762		76,672
Spirit Realty Capital, Inc. REIT		22,245		244,250
STAG Industrial, Inc. REIT		11,304		272,426
STAG Industrial, Inc. REIT*		4,613		124,090
Starwood Property Trust, Inc. REIT		14,017		330,661
Starwood Waypoint Residential Trust REIT*		2,129		61,294
Sunstone Hotel Investors, Inc.*		12,163		313,805
Taubman Centers, Inc. REIT		854		60,455
Terreno Realty Corp. REIT*		2,357		59,561
Ventas, Inc. REIT		1,576		95,458
Washington Real Estate Investment Trust REIT		3,700		88,356
				5,979,659
Japan — 9.3%
Aeon Mall Co. Ltd.		1,890		48,269
Japan Logistics Fund, Inc. REIT		18		40,459
Japan Retail Fund Investment Corp. REIT		91		179,152
Kenedix Realty Investment Corp. REIT		61		302,592
Mitsubishi Estate Co. Ltd.		7,000		165,887
Nippon Building Fund, Inc. REIT		12		62,665
Nomura Real Estate Master Fund, Inc.		105		107,935
Orix JREIT, Inc. REIT		138		172,208
Premier Investment Corp. REIT		70		271,617
				1,350,784
Australia — 8.8%
Australian Industrial REIT		45,000		83,049
CFS Retail Property Trust REIT		30,969		54,282
Charter Hall Retail REIT		78,340		260,097
Cromwell Property Group REIT		239,617		213,333
Dexus Property Group REIT		43,149		42,418
GPT Group REIT		10,647		36,139
Stockland REIT		80,949		281,521
Westfield Retail Trust REIT		110,846		306,341
				1,277,180
Singapore — 8.6%
Cambridge Industrial Trust REIT		246,000		140,806
CapitalCommercial Trust REIT		33,000		38,958
CapitaRetail China Trust REIT		79,640		88,637
Keppel REIT		132,000		119,628
Mapletree Commercial Trust REIT		238,000		230,829
Mapletree Greater China Commercial Trust REIT		200,000		129,581
Mapletree Logistics Trust REIT		224,000		186,088
Religare Health Trust		393,000		265,562
Suntec Real Estate Investment Trust REIT		38,000		50,147
				1,250,236
Canada — 6.2%
Crombie Real Estate Investment Trust REIT†		15,098		182,050
InnVest Real Estate Investment Trust REIT		76,200		364,630
Leisureworld Senior Care Corp.†		27,784		306,114
RioCan Real Estate Investment Trust REIT		1,958		47,166
				899,960
United Kingdom — 5.2%
British Land Co. PLC REIT		28,254		308,056
Great Portland Estates PLC REIT		3,398		35,746
Land Securities Group PLC REIT		2,234		38,026
Londonmetric Property PLC REIT		33,086		78,160
Primary Health Properties PLC REIT		18,384		105,738
Segro PLC REIT		34,967		193,539
				759,265
Hong Kong — 5.1%
Hang Lung Properties Ltd.		20,000		57,500
Hysan Development Co. Ltd.		17,000		73,970
Langham Hospitality Investments Ltd.*		438,000		219,099
Link REIT (The) REIT		13,500		66,399
Prosperity REIT		600,000		173,274
Yuexiu Real Estate Investment Trust REIT		309,000		152,976
				743,218
France — 3.8%
Altarea REIT		837		152,036
Fonciere Des Regions REIT		1,940		179,709
Mercialys SA REIT		7,035		147,316
Unibail-Rodamco SE REIT		310		80,503
				559,564

13

Touchstone Global Real Estate Fund (Unaudited) (Continued)

			Market
	Shares		Value
Common Stocks — 100.2% (Continued)
Mexico — 1.9%
Mexico Real Estate Management SA de CV REIT		142,719	$	269,139
Germany — 1.8%
Alstria Office REIT-AG		16,585		222,315
LEG Immobilien AG		701		45,979
				268,294
Netherlands — 1.7%
Wereldhave N.V.		2,927		249,162
South Africa — 1.5%
Redefine Properties Ltd.		242,664		220,122
Greece — 1.5%
Hamborner Reit AG		20,566		217,908
Finland — 1.2%
Citycon Oyj		48,053		170,797
New Zealand — 0.9%
Kiwi Income Property Trust REIT		136,453		132,039
Thailand — 0.8%
Ticon Industrial Connection PCL		232,800		123,433
Bermuda — 0.6%
Hongkong Land Holdings Ltd.		13,000		84,110
Sweden — 0.3%
Hufvudstaden AB - Class A		3,208		45,253
Total Common Stocks			$	14,600,123
Investment Fund — 7.5%
Invesco Government & Agency Portfolio, Institutional Class, 0.02%**∞Ω		1,090,981		1,090,981
Total Investment Securities —107.7%
(Cost $15,801,155)			$	15,691,104
Liabilities in Excess of Other Assets — (7.7%)				(1,122,055	)
Net Assets — 100.0%			$	14,569,049

* 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 March 31, 2014 was $1,056,154.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

PCL - Public Company Limited

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	$	14,600,123	$	—	$	—	$	14,600,123
Investment Fund		1,090,981		—		—		1,090,981
							$	15,691,104

See accompanying Notes to Financial Statements.

14

Portfolio of Investments 

Touchstone International Fixed Income Fund – March 31, 2014 (Unaudited)

Principal			Market
Amount(A)			Value
		Sovereign Government Obligations — 54.9%
$	1,000,000	Brazil Notas do Tesouro Nacional Serie
		B (BRL), 6.000%, 5/15/17	$	1,064,462
	1,000,000	Brazil Notas do Tesouro Nacional Serie
		B (BRL), 6.000%, 8/15/22		1,037,841
	300,000	Bundesrepublik Deutschland (EUR),
		1.500%, 9/4/22		419,466
	1,100,000	Bundesrepublik Deutschland (EUR),
		1.500%, 5/15/23		1,523,397
	500,000	Bundesrepublik Deutschland (EUR),
		2.250%, 9/4/20		747,163
	400,000	Bundesrepublik Deutschland (EUR),
		4.750%, 7/4/28		734,784
	300,000	Canadian Government Bond (CAD),
		3.250%, 6/1/21		292,999
	580,000	Canadian Government Bond (CAD),
		4.000%, 6/1/16		557,393
	570,000	Canadian Government Bond (CAD),
		5.000%, 6/1/14		519,137
	2,500,000	Denmark Government Bond (DKK),
		4.000%, 11/15/19		540,722
	75,000,000	Development Bank of Japan, Inc.
		(JPY), 1.050%, 6/20/23(B)		754,475
	500,000	Ireland Government Bond (EUR),
		3.400%, 3/18/24		711,271
	360,000	Ireland Government Bond (EUR),
		4.500%, 4/18/20		564,805
	500,000	Italy Buoni Poliennali Del Tesoro (EUR),
		3.750%, 3/1/21		740,383
	700,000	Italy Buoni Poliennali Del Tesoro (EUR),
		4.500%, 3/1/26		1,058,674
	500,000	Italy Buoni Poliennali Del Tesoro (EUR),
		4.750%, 8/1/23		777,481
	1,750,000	Italy Buoni Poliennali Del Tesoro Coupon Strip (EUR),
		4.922%, 5/1/29(C)		1,265,614
	60,000,000	Japan Finance Organization for Municipalities (JPY),
		2.000%, 5/9/16(B)		603,805
	4,950,000	Mexican Bonos, Ser M20 (MXN),
		10.000%, 12/5/24(B)		490,678
	450,000	Netherlands Government Bond (EUR),
		1.750%, 7/15/23		620,247
	500,000	Netherlands Government Bond (EUR),
		3.250%, 7/15/21		778,934
	700,000	New Zealand Government Bond
		(NZD), 6.000%, 4/15/15		623,759
	200,000	Portugal Obrigacoes do Tesouro OT
		(EUR), 4.375%, 6/16/14		277,655
	500,000	Portugal Obrigacoes do Tesouro OT
		(EUR), 4.750%, 6/14/19		747,021
	2,000,000	South Africa Government Bond (ZAR),
		6.750%, 3/31/21		175,479
	1,000,000	South Africa Government Bond (ZAR),
		8.000%, 12/21/18		95,636
	450,000	Spain Government Bond (EUR),
		4.800%, 1/31/24		703,152
	5,600,000	Sweden Government Bond, Ser 1049
		(SEK), 4.500%, 8/12/15		910,269
	1,000,000	Turkey Government Bond (TRY),
		8.500%, 9/14/22		426,462
	250,000	United Kingdom Gilt (GBP),
		8.000%, 12/7/15		469,225
		Total Sovereign Government Obligations	$	20,232,389
		Corporate Bonds — 31.2%
		Financials — 26.9%
	70,000,000	Asian Development Bank MTN (JPY),
		2.350%, 6/21/27(B)		794,875
	300,000	Asian Development Bank MTN (NOK),
		2.000%, 8/29/17		50,030
	200,000	Barclays Bank PLC, 5.200%, 7/10/14		202,616
	200,000	BES Finance Ltd. MTN,
		3.500%, 12/6/15		218,899
	100,000	Caixabank SA MTN (EUR),
		4.500%, 11/22/16		141,086
	300,000	Derwent London Capital Jersey Ltd.
		(GBP), 2.750%, 7/15/16		633,179
	50,000,000	Dexia Municipal Agency SA (JPY),
		1.800%, 5/9/17(B)		499,856
	450,000	European Financial Stability Facility
		(EUR), 2.750%, 7/18/16		653,647
	150,000	European Investment Bank (GBP),
		6.000%, 12/7/28		317,102
	40,000,000	European Investment Bank (JPY),
		1.900%, 1/26/26(B)		430,149
	90,000,000	European Investment Bank (JPY),
		2.150%, 1/18/27(B)		988,968
	85,000	European Union (EUR), 3.500%, 6/4/21		133,693
	300,000	German Postal Pensions Securitisation
		PLC (EUR), 3.375%, 1/18/16		434,750
	200,000	HSBC Bank PLC, 144a, 1.500%, 5/15/18		195,899
	100,000	INTU Jersey Ltd, REIT. (GBP),
		2.500%, 10/4/18		176,217
	500,000	KFW (EUR), 3.375%, 1/18/21		784,512
	120,000,000	KFW (JPY), 2.050%, 2/16/26(B)		1,326,325
	300,000	LCR Finance PLC (GBP),
		4.500%, 12/7/28		552,507
	100,000	Magyar Nemzeti Vagyonkezelo Zrt
		(EUR), 3.375%, 4/2/19		142,284
	2,200,000	Nordic Investment Bank (NOK),
		2.125%, 8/9/17		367,597
	300,000	Northern Rock Asset Management
		PLC (EUR), 3.875%, 11/16/20		471,543
	250,000	Northern Rock Asset Management
		PLC (EUR), 4.125%, 3/27/17		378,236
				9,893,970
		Industrials — 2.5%
	200,000	Balfour Beatty Finance No.2 Ltd. (GBP),
		1.875%, 12/3/18		349,932

15

Touchstone International Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount(A)			Value
		Corporate Bonds — 31.2% (Continued)
		Industrials — (Continued)
$	250,000	Siemens Financieringsmaatschappij
		N.V., 1.050%, 8/16/17	$	290,774
	200,000	Xefin Lux SCA (EUR), 8.000%, 6/1/18		294,130
				934,836
		Consumer Discretionary — 1.0%
	200,000	International Consolidated Airlines
		Group SA (EUR), 1.750%, 5/31/18		370,232
		Materials — 0.8%
	100,000	Barminco Finance Pty Ltd., 144a,
		9.000%, 6/1/18		91,999
	200,000	Glencore Finance Europe SA,
		5.000%, 12/31/14		218,099
				310,098
		Total Corporate Bonds	$	11,509,136
Shares
		Investment Fund — 11.2%
	4,110,523	Touchstone Institutional Money
		Market Fund, 0.01%^∞Ω		4,110,523
		Total Investment Securities —97.3%
		(Cost $35,236,868)	$	35,852,048
		Other Assets in Excess of
		Liabilities — 2.7%		997,377
		Net Assets — 100.0%	$	36,849,425

^(A) Principal amount stated in U.S. dollars unless otherwise noted.

^(B) Amount shown represents units. One unit represents a principal amount of 100.

^(C) Zero coupon bond - Rate shown reflects effective yield to maturity at time of purchase.

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

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

AUD - Australian Dollar

BRL - Brazil Real

CAD - Canadian Dollar

DKK - Danish Krone

EUR - Euro

GBP - British Pound

HKD - Hong Kong Dollar

HUF - Hungarian Forint

JPY - Japanese Yen

MTN - Medium Term Note

MXN - Mexican Peso

NOK - Norwegian Krone

NZD - New Zealand Dollar

PLC - Public Limited Company

REIT - Real Estate Investment Trust

SEK - Swedish Krona

TRY - Turkey Lira

ZAR - South African Rand

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 March 31, 2014, these securities were valued at $287,898 or 0.8% 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.

Valuation inputs at Reporting Date: 

Description	Level 1		Level 2			Level 3		Total
Assets:
Sovereign
Government
Obligations	$	—	$	20,232,389		$	—	$	20,232,389
Corporate Bonds		—		11,509,136			—		11,509,136
Investment Fund		4,110,523		—			—		4,110,523
								$	35,852,048
Other Financial Instruments*
Assets:
Forward Foreign
Currency
Contracts	$	—	$	330,060		$	—	$	330,060
Liabilities:
Forward Foreign
Currency
Contracts	$	—	$	(350,893	)	$	—	$	(350,893	)

* Other Financial Instruments are derivative instruments not reflected in total investments. Amounts shown represent unrealized appreciation (depreciation).

16

Touchstone International Fixed Income Fund (Unaudited) (Continued)

Forward Foreign Currency Exchange Contracts

									Unrealized
		Contract to							Appreciation/
Counterparty	Expiration Date	Receive			Deliver				(Depreciation)
UBS AG	04/11/2014	AUD	312,000			NZD	(334,208	)	$	(650	)
UBS AG	04/11/2014	BRL	1,285,500			USD	528,400			36,529
UBS AG	04/11/2014	CAD	768,000			MXN	(9,248,102	)		(13,235	)
UBS AG	04/11/2014	CAD	2,333,539			USD	2,077,000			33,309
UBS AG	04/11/2014	GBP	1,000,000			JPY	(172,343,600	)		(2,847	)
UBS AG	04/11/2014	GBP	850,000			USD	1,415,378			1,578
UBS AG	04/11/2014	GBP	100,500			USD	165,041			2,494
UBS AG	04/11/2014	HUF	114,018,200			USD	500,000			10,798
UBS AG	04/11/2014	JPY	70,515,200			AUD	(787,000	)		(46,088	)
UBS AG	04/11/2014	JPY	104,449,496			EUR	(764,000	)		(40,482	)
UBS AG	04/11/2014	JPY	170,394,800			GBP	(1,000,000	)		(16,034	)
UBS AG	04/11/2014	JPY	139,317,685			GBP	(845,000	)		(58,758	)
UBS AG	04/11/2014	JPY	359,510,200			USD	3,500,000			(16,671	)
UBS AG	04/11/2014	MXN	9,321,710			CAD	(768,000	)		18,868
UBS AG	04/11/2014	NOK	8,156,500			USD	1,324,597			37,011
UBS AG	04/11/2014	NZD	336,820			AUD	(312,000	)		2,914
UBS AG	04/11/2014	SEK	6,700,000			USD	1,027,350			7,652
UBS AG	04/11/2014	USD	(526,197	)		BRL	(1,285,500	)		(38,731	)
UBS AG	04/11/2014	USD	(2,077,000	)		CAD	(2,211,411	)		77,136
UBS AG	04/11/2014	USD	(326,022	)		EUR	(239,000	)		(3,230	)
UBS AG	04/11/2014	USD	(549,989	)		EUR	(404,000	)		(6,570	)
UBS AG	04/11/2014	USD	(661,428	)		EUR	(483,500	)		(4,653	)
UBS AG	04/11/2014	USD	(715,353	)		EUR	(519,177	)		123
UBS AG	04/11/2014	USD	(995,451	)		EUR	(725,500	)		(4,014	)
UBS AG	04/11/2014	USD	(1,105,935	)		EUR	(809,500	)		(9,251	)
UBS AG	04/11/2014	USD	(337,390	)		GBP	(205,000	)		(4,346	)
UBS AG	04/11/2014	USD	(800,000	)		HKD	(6,205,980	)		256
UBS AG	04/11/2014	USD	(500,000	)		HUF	(110,340,500	)		5,678
UBS AG	04/11/2014	USD	(1,027,236	)		SEK	(6,700,000	)		(7,767	)
UBS AG	04/11/2014	USD	(500,000	)		TRY	(1,129,100	)		(25,872	)
UBS AG	04/11/2014	USD	(525,000	)		ZAR	(5,746,886	)		(19,946	)
UBS AG	04/11/2014	USD	(1,270,500	)		ZAR	(13,716,383	)		(30,151	)
UBS AG	04/11/2014	ZAR	14,276,609			USD	1,270,500			83,274
UBS AG	04/11/2014	ZAR	3,491,000			USD	329,728			1,305
UBS AG	04/11/2014	ZAR	2,962,000			USD	270,590			10,281
UBS AG	07/15/2014	MXN	14,867,000			USD	1,130,966			(1,597	)
UBS AG	07/15/2014	USD	(549,932	)		DKK	(2,973,500	)		—
UBS AG	07/15/2014	USD	(498,122	)		EUR	(361,000	)		854
									$	(20,833	)

See accompanying Notes to Financial Statements.

17

Portfolio of Investments 

Touchstone Merger Arbitrage Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks — 81.6%
Financials — 21.2%
BRE Properties, Inc.		306,656	$	19,251,864
CapitalSource, Inc.		1,125,900		16,426,881
Hudson City Bancorp, Inc.†		1,694,200		16,653,986
National Interstate Corp.†		225,332		6,041,151
Nicholas Financial, Inc.		511,015		8,038,266
North Valley Bancorp*		246,188		5,952,826
NorthStar Realty Finance Corp. REIT†		252,463		4,074,753
Sterling Financial Corp./WA		477,870		15,927,407
Taylor Capital Group, Inc.*		647,743		15,494,013
Tower Group International Ltd.		2,373,890		6,409,503
United Bancorp, Inc./MI*		456,730		5,617,779
United Financial Bancorp, Inc.		372,517		6,850,588
Washington Banking Co.		482,505		8,578,939
				135,317,956
Information Technology — 15.4%
Accelrys, Inc.*		1,037,737		12,930,203
ATMI, Inc.*†		532,765		18,119,337
AutoNavi Holdings Ltd. ADR*†		317,630		6,365,305
Compuware Corp.†		618,000		6,489,000
LSI Corp.†		1,591,401		17,616,809
Tokyo Electron Ltd. ADR		1,002,828		15,684,230
TriQuint Semiconductor, Inc.*		489,521		6,554,686
Xyratex Ltd.		1,128,148		14,936,680
				98,696,250
Consumer Discretionary — 10.9%
Jones Group, Inc./PA†		466,105		6,977,592
Jos A Bank Clothiers, Inc.*		202,265		13,005,640
Liberty Interactive Corp. - Class A*		167,385		4,832,405
Omnicom Group, Inc.		181,815		13,199,769
Outerwall, Inc.*†		106,035		7,687,538
Time Warner Cable, Inc.†		70,110		9,617,690
Zale Corp.*†		689,095		14,408,976
				69,729,610
Health Care — 7.9%
Emeritus Corp.*		407,220		12,802,997
Forest Laboratories, Inc.*†		167,600		15,464,452
Hi-Tech Pharmacal Co., Inc.*†		320,417		13,883,669
LCA-Vision, Inc.*		423,416		2,265,276
Nordion, Inc.*		556,880		6,415,258
				50,831,652
Consumer Staples — 6.3%
Beam, Inc.†		241,125		20,085,711
Safeway, Inc.		164,005		6,058,345
Shoppers Drug Mart Corp.		259,296		14,375,370
				40,519,426
Industrials — 6.1%
Foster Wheeler AG*†		622,445		20,179,667
JetBlue Airways Corp.*		338,230		2,939,219
Schawk, Inc.		806,595		16,123,834
				39,242,720
Energy — 5.6%
Baytex Energy Corp.*		171,900		6,872,890
EPL Oil & Gas, Inc.*		337,105		13,012,253
Equal Energy Ltd.		1,614,240		7,393,219
Noble Energy, Inc.†		54,205		3,850,723
Santonia Energy, Inc.*		3,134,797		4,388,716
				35,517,801
Materials — 3.7%
Ainsworth Lumber Co. Ltd.*		3,500,000		12,120,150
AZ Electronic Materials SA		1,681,900		11,294,355
				23,414,505
Utilities — 2.3%
UNS Energy Corp.†		240,635		14,445,319
Telecommunication Services — 2.2%
Ziggo NV		320,000		14,217,420
Total Common Stocks			$	521,932,659
Preferred Stocks — 2.8%
Financials — 2.2%
Citigroup Capital XIII, 7.88%(A)		14,828		411,329
CommonWealth REIT, 6.50%		128,038		3,215,034
Crown Castle International Corp., 4.50%		37,000		3,751,430
GMAC Capital Trust I, 8.13%(A)		249,600		6,814,080
				14,191,873
Utilities — 0.6%
NextEra Energy, Inc., 5.80%		68,800		3,716,576
Total Preferred Stocks			$	17,908,449

Principal
Amount
		Corporate Bonds — 4.9%
		Energy — 1.5%
$	1,628,000	Newfield Exploration Co.,
		7.125%, 5/15/18	1,676,840
	3,000,000	Petrohawk Energy Corp.,
		7.250%, 8/15/18	3,183,000
	4,650,000	Tesoro Corp., 9.750%, 6/1/19	4,949,460
			9,809,300
		Financials — 1.4%
	1,785,000	Omega Healthcare Investors, Inc.,
		6.750%, 10/15/22	1,945,650
	3,845,000	PNC Preferred Funding Trust II, 144a,
		1.456%, 3/29/49(A)	3,652,750
	3,000,000	Royal Bank of Scotland Group PLC,
		5.000%, 10/1/14	3,041,181
			8,639,581
		Consumer Staples — 0.8%
	4,650,000	US Foods, Inc., 8.500%, 6/30/19	5,031,300

18

Touchstone Merger Arbitrage Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Corporate Bonds — 4.9% (Continued)
		Materials — 0.6%
	2,855,000	Dow Chemical Co. (The),
		8.550%, 5/15/19	$	3,655,673
		Industrials — 0.5%
$	2,800,000	Texas Industries, Inc., 9.250%, 8/15/20		3,234,000
		Utilities — 0.1%
	558,000	AES Corp. (The), 8.000%, 10/15/17		660,532
		Total Corporate Bonds	$	31,030,386

	Shares
Exchange Traded Fund — 1.6%
PowerShares Senior Loan Portfolio†		423,030	10,495,374

	Number
	of
	Contracts
Purchased Call Options — 0.1%
National Oilwell VARCO, Inc.
Strike @ 85.00
Exp 01/15		585		169,650
Noble Corp.
Strike @ 40.00
Exp 01/15		971		63,115
				232,765
Purchased Put Option — 0.0%
Liberty Interactive Corp.
Strike @ 27.00
Exp 07/14		1,674		142,290
Total Purchased Options
(Proceeds 929,180)			$	375,055

	Shares
Investment Fund — 16.0%
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		102,670,316			102,670,316
Total Long Positions
(Cost $671,584,994)				$	684,412,239
Securities Sold Short — (37.9%)
Common Stocks — (36.7%)
Financials — (15.5%)
Crown Castle International Corp. REIT		(10,816	)		(798,004	)
Essex Property Trust, Inc., REIT		(91,107	)		(15,492,745	)
Heritage Financial Corp./WA		(429,748	)		(7,271,336	)
M&T Bank Corp.		(142,362	)		(17,268,511	)
MB Financial, Inc.		(416,596	)		(12,897,812	)

				Market
	Shares			Value
Financials — (Continued)
Old National BanCorp./IN		(319,714	)		(4,766,936	)
PacWest Bancorp		(296,921	)		(12,770,572	)
Rockville Financial, Inc.		(501,557	)		(6,816,160	)
Trico Bancshares		(232,232	)		(6,021,776	)
Umpqua Holdings Corp.		(798,525	)		(14,884,507	)
					(98,988,359	)
Consumer Discretionary — (6.3%)
Comcast Corp. - Class A		(201,567	)		(10,082,381	)
Liberty Global, Inc. - Class A*		(73,024	)		(3,037,798	)
Liberty Global, Inc. - Series C*		(180,160	)		(7,334,314	)
Matthews International Corp. - Class A		(166,016	)		(6,775,113	)
Publicis Groupe SA		(147,817	)		(13,354,785	)
					(40,584,391	)
Energy — (4.2%)
Amec PLC		(560,069	)		(10,476,258	)
Baytex Energy Corp.		(171,900	)		(7,078,144	)
Energy XXI (Bermuda) Ltd.		(196,872	)		(4,640,273	)
Tourmaline Oil Corp.*		(94,427	)		(4,438,805	)
					(26,633,480	)
Health Care — (3.8%)
Actavis PLC*		(55,410	)		(11,406,147	)
Brookdale Senior Living, Inc.*		(386,862	)		(12,963,746	)
					(24,369,893	)
Information Technology — (3.6%)
Applied Materials, Inc.		(814,732	)		(16,636,827	)
RF Micro Devices, Inc.*		(819,948	)		(6,461,190	)
					(23,098,017	)
Consumer Staples — (1.3%)
Loblaw Cos. Ltd.		(190,919	)		(8,167,515	)
Materials — (1.0%)
Louisiana-Pacific Corp.*		(399,000	)		(6,731,131	)
Utilities — (0.5%)
NextEra Energy, Inc.		(32,524	)		(3,109,945	)
Industrials — (0.5%)
Southwest Airlines Co.		(131,352	)		(3,101,221	)
Total Common Stocks				$	(234,783,952	)
Exchange Traded Fund — (0.6%)
Energy Select Sector SPDR Fund		(44,701	)		(3,981,071	)

Principal
Amount
U.S. Treasury Obligation — (0.6%)
$	(4,065,000	)	United States Treasury Note/Bond,
			0.750%, 2/28/18		(3,971,314	)
Total Securities Sold Short
(Proceeds $(228,875,382))				$	(242,736,337	)

19

Touchstone Merger Arbitrage Fund (Unaudited) (Continued)

	Number
	of			Market
	Contracts			Value
Written Call Options — 0.0%
National Oilwell VARCO, Inc.
Strike @ 90.00
Exp 01/15		(585	)	$	(104,130	)
Noble Corp.
Strike @ 45.00
Exp 01/15		(971	)		(24,275	)
					(128,405	)
Written Put Options — (0.1%)
National Oilwell VARCO, Inc.
Strike @ 60.00
Exp 01/15		(585	)		(70,200	)
National Oilwell VARCO, Inc.
Strike @ 90.00
Exp 04/14		(206	)		(4,120	)
Noble Corp.
Strike @ 30.00
Exp 01/15		(971	)		(225,272	)
					(299,592	)
Total Written Options
(Proceeds $(895,549))				$	(427,997	)
Total Investment Securities — 69.0%
(Cost $441,814,063)				$	441,247,905
Cash Collateral for Securities
Sold Short and Written Options — 33.4%					213,705,981
Liabilities in Excess of Other Assets — (2.4%)					(15,246,223	)
Net Assets — 100.0%				$	639,707,663

^(A) Variable rate security - Rate reflected is the rate in effect as of March 31, 2014.

* Non-income producing security.

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

^† All or a portion of these securities are held as collateral for securities sold short and written options. The total value of the securities held as collateral as of March 31, 2014 was $212,357,573.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

ADR - American Depositary Receipt

CAD - Canadian Dollar

EUR - Euro

GBP - British Pound

PLC - Public Limited Company

REIT - Real Estate Investment Trust

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 March 31, 2014 these securities were valued at $3,652,750 or 0.6% 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.

Valuation inputs at Reporting Date: 

Description	Level 1			Level 2			Level 3		Total
Assets:
Common Stocks	$	521,932,659		$	—		$	—	$	521,932,659
Preferred Stocks		17,908,449			—			—		17,908,449
Corporate Bonds		—			31,030,386			—		31,030,386
Exchanged Traded Fund		10,495,374			—			—		10,495,374
Investment Fund		102,670,316			—			—		102,670,316
Purchased Options
Equity Contracts		375,055			—			—		375,055
									$	684,412,239
Liabilities:
Securities Sold Short
Common Stocks		(234,783,952	)		—			—		(234,783,952	)
Exchange Traded Fund		(3,981,071	)		—			—		(3,981,071	)
U.S. Treasury Obligations		—			(3,971,314	)		—		(3,971,314	)
									$	(242,736,337	)

20

Touchstone Merger Arbitrage Fund (Unaudited) (Continued)

Valuation inputs at Reporting Date:
Description	Level 1			Level 2			Level 3		Total
Other Financial Instruments**
Assets:
Forward Foreign
Currency Contracts	$	—		$	22,805		$	—	$	22,805
Liabilities:
Forward Foreign
Currency Contracts		—			(568,423	)		—		(568,423	)
Equity Contracts		(427,997	)		—			—		(427,997	)
									$	(996,420	)

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

Transactions in written options for the period ended March 31, 2014.

	Number of
	Contracts		Premium
Beginning of Period, September 30, 2013		—	$	—
Call Options Written		1,556		503,797
Put Options Written		1,762		391,752
March 31, 2014		3,318	$	895,549

Forward Foreign Currency Exchange Contracts

								Unrealized
		Contract to						Appreciation/
Counterparty	Expiration Date	Receive			Deliver			(Depreciation)
Brown Brothers
Harriman	04/11/2014		USD	7,753,083		CAD	8,603,441	$	(27,341	)
Brown Brothers
Harriman	04/25/2014		CAD	176,088		USD	158,724		468
Brown Brothers
Harriman	04/25/2014		USD	167,767		CAD	176,088		8,575
Brown Brothers
Harriman	04/29/2014		EUR	6,587,500		USD	9,159,458		(84,748	)
Brown Brothers
Harriman	04/29/2014		USD	8,910,253		EUR	6,587,500		(164,457	)
Brown Brothers
Harriman	04/30/2014		USD	6,151,532		CAD	6,790,000		13,762
Brown Brothers
Harriman	04/30/2014		USD	11,061,263		GBP	6,786,467		(250,269	)
Brown Brothers
Harriman	07/31/2014		USD	4,807,088		EUR	3,520,000		(41,608	)
								$	(545,618	)

See accompanying Notes to Financial Statements.

21

Portfolio of Investments 

Touchstone Mid Cap Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks — 98.4%
Consumer Discretionary — 24.2%
Cabela’s, Inc.*		195,792	$	12,826,334
CarMax, Inc.*		333,399		15,603,073
Deckers Outdoor Corp.*†		247,208		19,709,894
Dollar Tree, Inc.*		196,850		10,271,632
Hasbro, Inc.		213,893		11,896,729
Service Corp. International		323,759		6,436,329
Tempur Sealy International, Inc.*		298,990		15,149,823
Whirlpool Corp.		96,831		14,472,361
				106,366,175
Financials — 18.5%
Alexander & Baldwin, Inc.		132,549		5,641,285
Alleghany Corp.*		42,973		17,506,341
Eaton Vance Corp.		198,986		7,593,306
M&T Bank Corp.†		153,321		18,597,837
MBIA, Inc.*		1,243,169		17,391,934
White Mountains Insurance Group Ltd. (Bermuda)		23,775		14,262,622
				80,993,325
Consumer Staples — 16.6%
Brown-Forman Corp. - Class B		157,227		14,101,690
Energizer Holdings, Inc.		162,047		16,324,615
Hershey Co. (The)		134,728		14,065,603
Lorillard, Inc.		232,238		12,559,431
Nu Skin Enterprises, Inc. - Class A		89,575		7,421,289
Pricesmart, Inc.		82,663		8,343,177
				72,815,805
Materials — 11.1%
Albemarle Corp.		235,662		15,652,670
NewMarket Corp.		55,470		21,676,567
Vulcan Materials Co.		168,195		11,176,558
				48,505,795
Industrials — 10.8%
Alliant Techsystems, Inc.		77,450		11,009,518
Cintas Corp.		355,565		21,195,230
Matson, Inc.		140,784		3,475,957
Old Dominion Freight Line, Inc.*		204,415		11,598,507
				47,279,212
Information Technology — 7.6%
Amphenol Corp. - Class A		189,056		17,326,982
Paychex, Inc.		376,758		16,049,891
				33,376,873
Energy — 6.5%
Atwood Oceanics, Inc.*		319,931		16,121,323
Kinder Morgan Management LLC*		171,487		12,290,509
				28,411,832
Health Care — 3.1%
Tenet Healthcare Corp.*		320,943		13,739,570
Total Common Stocks			$	431,488,587
Investment Funds — 8.1%
Invesco Government & Agency
Portfolio, Institutional Class, 0.02%**∞Ω		28,588,759	$	28,588,759
Touchstone Institutional Money Market Fund, 0.01%^∞Ω		7,027,269		7,027,269
Total Investment Funds			$	35,616,028
Total Investment Securities —106.5%
(Cost $411,432,868)			$	467,104,615
Liabilities in Excess of Other Assets — (6.5%)				(28,460,118	)
Net Assets — 100.0%			$	438,644,497

* Non-income producing security.

** Represents collateral for securities loaned.

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

† All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2014 was $28,255,508.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

LLC - Limited Liability 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	$	431,488,587	$	—	$	—	$	431,488,587
Investment Funds		35,616,028		—		—		35,616,028
							$	467,104,615

See accompanying Notes to Financial Statements.

22

Portfolio of Investments 

Touchstone Mid Cap Value Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 98.8%
Financials — 22.6%
Alexandria Real Estate Equities, Inc., REIT		65,884	$	4,780,543
Allstate Corp. (The)		54,391		3,077,443
American Campus Communities, Inc., REIT		129,873		4,850,757
Ameriprise Financial, Inc.		36,185		3,982,883
Endurance Specialty Holdings Ltd.		61,226		3,295,796
Fifth Third Bancorp		244,435		5,609,783
Hancock Holding Co.		87,660		3,212,739
Hartford Financial Services Group, Inc.		123,945		4,371,540
Host Hotels & Resorts, Inc., REIT		195,173		3,950,302
PartnerRe Ltd.		35,640		3,688,740
Reinsurance Group of America, Inc.		55,405		4,411,900
SunTrust Banks, Inc.		120,827		4,807,706
TCF Financial Corp.		241,611		4,025,239
Unum Group		68,493		2,418,488
Willis Group Holdings PLC		81,028		3,575,766
Zions Bancorporation		116,163		3,598,730
				63,658,355
Consumer Discretionary — 11.9%
Abercrombie & Fitch Co. - Class A†		54,031		2,080,194
American Eagle Outfitters, Inc.		297,548		3,641,988
Bed Bath & Beyond, Inc.*		51,513		3,544,094
Cabela’s, Inc.*		39,458		2,584,894
Dollar General Corp.*		42,861		2,377,928
Harley-Davidson, Inc.		47,881		3,189,353
Hasbro, Inc.		55,020		3,060,212
Interpublic Group of Cos, Inc. (The)		139,184		2,385,614
Newell Rubbermaid, Inc.		115,839		3,463,586
PetSmart, Inc.†		51,141		3,523,103
Sally Beauty Holdings, Inc.*		132,366		3,626,828
				33,477,794
Industrials — 10.9%
Cintas Corp.		65,560		3,908,032
Clean Harbors, Inc.*		77,489		4,245,622
Dover Corp.		47,489		3,882,226
Fluor Corp.		46,266		3,596,256
Parker Hannifin Corp.		32,402		3,878,843
Regal-Beloit Corp.		51,669		3,756,854
Stanley Black & Decker, Inc.		51,846		4,211,969
Xylem, Inc.		88,892		3,237,447
				30,717,249
Information Technology — 10.1%
Cadence Design Systems, Inc.*		250,428		3,891,651
Citrix Systems, Inc.*		74,728		4,291,629
Diebold, Inc.		80,885		3,226,503
Fidelity National Information Services, Inc.		85,040		4,545,388
Juniper Networks, Inc.*		133,559		3,440,480
Microchip Technology, Inc.†		93,370		4,459,351
Synopsys, Inc.*		120,700		4,636,087
				28,491,089
Consumer Staples — 9.6%
Coca-Cola Enterprises, Inc.		62,424		2,981,370
Darling International, Inc.*		204,092		4,085,922
Ingredion, Inc.		29,420		2,002,914
JM Smucker Co. (The)		62,318		6,059,802
Kroger Co. (The)		97,389		4,251,030
Molson Coors Brewing Co. - Class B		76,372		4,495,256
Sysco Corp.		86,369		3,120,512
				26,996,806
Health Care — 9.4%
AmerisourceBergen Corp.		42,786		2,806,334
CareFusion Corp.*		96,561		3,883,683
Charles River Laboratories International, Inc.*		61,319		3,699,988
Cooper Cos, Inc. (The)		29,538		4,057,340
DENTSPLY International, Inc.		77,477		3,567,041
Patterson Cos., Inc.		109,669		4,579,777
Quest Diagnostics, Inc.†		65,569		3,797,756
				26,391,919
Utilities — 8.7%
AGL Resources, Inc.		78,068		3,822,209
Edison International		68,807		3,895,164
Great Plains Energy, Inc.		166,376		4,498,807
Portland General Electric Co.		133,197		4,307,591
SCANA Corp.		69,086		3,545,494
Xcel Energy, Inc.		143,500		4,356,660
				24,425,925
Materials — 8.0%
Air Products & Chemicals, Inc.		26,067		3,103,016
Albemarle Corp.		59,927		3,980,351
Allegheny Technologies, Inc.		118,576		4,467,944
Greif, Inc. - Class A		64,942		3,408,806
Nucor Corp.		51,827		2,619,337
Owens-Illinois, Inc.*		63,292		2,141,168
Silgan Holdings, Inc.		57,443		2,844,577
				22,565,199
Energy — 7.6%
EQT Corp.		46,266		4,486,414
McDermott International, Inc. (Panama)*†		159,279		1,245,562
Nabors Industries Ltd.		79,173		1,951,614
Newfield Exploration Co.*		114,521		3,591,379
Pioneer Natural Resources Co.		20,689		3,871,739
Range Resources Corp.†		16,656		1,381,948
Spectra Energy Corp.		136,747		5,051,434
				21,580,090
Total Common Stocks			$	278,304,426
Exchange Traded Fund — 1.2%
iShares Russell Midcap Value Index Fund∞		48,562		3,337,666

23

Touchstone Mid Cap Value Fund (Unaudited) (Continued)

			Market
	Shares		Value
Investment Funds— 6.5%
Invesco Government & Agency Portfolio, Institutional Class, 0.02%**∞Ω		12,608,180	$	12,608,180
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		5,643,174		5,643,174
Total Investment Funds			$	18,251,354
Total Investment Securities —106.5%
(Cost $263,095,312)			$	299,893,446
Liabilities in Excess of Other Assets — (6.5)%				(18,255,765	)
Net Assets — 100.0%			$	281,637,681

* Non-income producing security.

** Represents collateral for securities loaned.

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

† All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2014 was $12,400,092.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

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	$	278,304,426	$	—	$	—	$	278,304,426
Exchanged Traded Fund		3,337,666		—		—		3,337,666
Investment Funds		18,251,354		—		—		18,251,354
							$	299,893,446

See accompanying Notes to Financial Statements.

24

Portfolio of Investments

Touchstone Premium Yield Equity Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 99.0%
Energy — 22.4%
Ensco PLC- Class A (United Kingdom)		42,562	$	2,246,422
Golar Lng Ltd. (Bermuda)		37,425		1,560,248
Kinder Morgan Management LLC*		3		214
Kinder Morgan, Inc. Delaware		284,930		9,257,376
LinnCo LLC		97,232		2,630,126
Pembina Pipeline Corp. (Canada)		51,368		1,956,093
Seadrill Ltd. (Bermuda)		105,671		3,715,392
Spectra Energy Corp.		119,614		4,418,541
Total SA, ADR		52,836		3,466,042
Williams Cos., Inc. (The)		148,645		6,032,014
				35,282,468
Financials — 16.9%
Bank of Montreal (Canada)		46,231		3,097,939
CME Group, Inc. IL		56,138		4,154,773
Digital Realty Trust, Inc., REIT		66,778		3,544,576
HCP, Inc., REIT		57,972		2,248,734
Hospitality Properties Trust, REIT		117,780		3,382,642
Omega Healthcare Investors, Inc., REIT		95,765		3,210,043
People's United Financial, Inc.		157,039		2,335,170
Senior Housing Properties Trust, REIT		66,778		1,500,502
Ventas, Inc., REIT		52,102		3,155,818
				26,630,197
Health Care — 16.3%
Baxter International, Inc.		42,929		3,158,716
GlaxoSmithKline PLC, ADR		78,887		4,214,932
Johnson & Johnson		51,368		5,045,879
Merck & Co., Inc.		120,348		6,832,156
Novartis AG, ADR		38,159		3,244,278
Pfizer, Inc.		98,333		3,158,457
				25,654,418
Information Technology — 13.4%
Cisco Systems, Inc.		137,960		3,091,684
Intel Corp.		269,315		6,951,020
Maxim Integrated Products, Inc.		84,023		2,782,842
Microchip Technology, Inc.		84,390		4,030,466
Microsoft Corp.		105,304		4,316,411
				21,172,423
Utilities — 11.5%
American Water Works Co., Inc.		129,888		5,896,915
NiSource, Inc.		159,975		5,683,912
ONE Gas, Inc.*		28,282		1,016,172
ONEOK, Inc.		94,962		5,626,498
				18,223,497
Telecommunication Services — 6.1%
AT&T, Inc.		86,959		3,049,652
BCE, Inc. (Canada)		31,555		1,361,283
Verizon Communications, Inc.		41,590		1,978,436
Vodafone Group PLC, ADR		86,258		3,175,158
				9,564,529
Materials — 5.5%
International Paper Co.		77,419		3,551,984
Potash Corp. of Saskatchewan, Inc.		140,161		5,076,631
				8,628,615
Industrials — 3.9%
General Electric Co.		237,027		6,136,629
Consumer Discretionary — 3.0%
Darden Restaurants, Inc.		59,546		3,022,555
Mattel, Inc.		41,276		1,655,580
				4,678,135
Total Common Stocks			$	155,970,911
Investment Fund — 1.0%
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		1,687,737		1,687,737
Total Investment Securities —100.0%
(Cost $132,436,761)			$	157,658,648
Liabilities in Excess of Other Assets — 0.0%				(74,649	)
Net Assets — 100.0%			$	157,583,999

* Non-income producing security.

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

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

ADR - American Depositary Receipt

LLC - Limited Liability Company

PLC - Public Limited Company

REIT - Real Estate Investment Trust

25

Touchstone Premium Yield Equity 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	$	155,970,911	$	—	$	—	$	155,970,911
Investment
Fund		1,687,737		—		—		1,687,737
							$	157,658,648

See accompanying Notes to Financial Statements.

26

Portfolio of Investments

Touchstone Sands Capital Select Growth Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 96.9%
Information Technology — 35.4%
ARM Holdings PLC ADR		3,910,000	$	199,292,700
ASML Holding NV†		1,895,000		176,917,200
Baidu, Inc. ADR*		1,549,000		236,036,620
Facebook, Inc. - Class A*		3,560,000		214,454,400
Google, Inc. - Class A*		326,000		363,330,260
LinkedIn Corp. - Class A*		984,000		181,980,960
Salesforce.com, Inc.*		4,265,000		243,488,850
Splunk, Inc.*		1,789,000		127,895,610
Visa, Inc. - Class A		2,095,000		452,226,700
				2,195,623,300
Consumer Discretionary — 25.3%
Amazon.com, Inc.*		1,100,000		370,172,000
Chipotle Mexican Grill, Inc.*		475,000		269,823,750
Las Vegas Sands Corp.		2,458,000		198,557,240
NIKE, Inc. - Class B		2,647,000		195,507,420
priceline.com, Inc.*		264,000		314,658,960
Starbucks Corp.		1,479,000		108,529,020
Ulta Salon Cosmetics & Fragrance, Inc.*		1,140,202		111,146,891
				1,568,395,281
Health Care — 18.0%
Alexion Pharmaceuticals, Inc.*		1,072,000		163,083,360
athenahealth, Inc.*†		814,000		130,435,360
Biogen Idec, Inc.*		757,000		231,543,590
BioMarin Pharmaceutical, Inc.*		1,358,000		92,629,180
Cerner Corp.*		2,843,000		159,918,750
Intuitive Surgical, Inc.*		349,000		152,858,510
Regeneron Pharmaceuticals, Inc.*		633,000		190,077,240
				1,120,545,990
Energy — 12.1%
FMC Technologies, Inc.*		2,775,000		145,104,750
National Oilwell Varco, Inc.		2,160,000		168,199,200
Schlumberger Ltd. (CW)		2,436,000		237,510,000
Southwestern Energy Co.*		4,395,000		202,213,950
				753,027,900
Materials — 3.5%
Monsanto Co.		1,901,000		216,276,770
Financials — 2.6%
Charles Schwab Corp. (The)		5,884,000		160,809,720
Total Common Stocks			$	6,014,678,961
Investment Funds— 5.5%
Invesco Government & Agency
Portfolio, Institutional Class,
0.02%**∞Ω		159,916,330		159,916,330
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		183,747,761		183,747,761
Total Investment Funds			$	343,664,091
Total Investment Securities —102.4%
(Cost $4,155,984,054)			$	6,358,343,052
Liabilities in Excess of Other Assets — (2.4%)				(151,435,781	)
Net Assets — 100.0%			$	6,206,907,271

* Non-income producing security.

** Represents collateral for securities loaned.

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

† All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2014 was $158,652,865.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviation:

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	$	6,014,678,961	$	—	$	—	$	6,014,678,961
Investment
Funds		343,664,091		—		—		343,664,091
							$	6,358,343,052

See accompanying Notes to Financial Statements.

27

Portfolio of Investments

Touchstone Small Cap Core Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 98.5%
Financials — 23.0%
Alexander & Baldwin, Inc.		599,978	$	25,535,064
Corrections Corp. of America REIT		970,980		30,411,094
Eaton Vance Corp.		1,024,190		39,083,090
First Industrial Realty Trust, Inc. REIT		1,626,681		31,427,477
MBIA, Inc.*		1,908,624		26,701,650
Montpelier Re Holdings Ltd. (Bermuda)		624,962		18,598,869
Tejon Ranch Co.*		473,769		16,027,605
White Mountains Insurance Group Ltd.
(Bermuda)		35,294		21,172,871
				208,957,720
Consumer Discretionary — 22.9%
American Eagle Outfitters, Inc.		747,519		9,149,633
Cabela's, Inc.*		649,326		42,537,346
Columbia Sportswear Co.†		275,361		22,758,587
Deckers Outdoor Corp.*†		437,840		34,908,983
Service Corp. International		2,142,020		42,583,358
Sturm Ruger & Co., Inc.†		403,032		24,101,314
Tempur Sealy International, Inc.*		623,900		31,613,013
				207,652,234
Materials — 17.6%
Albemarle Corp.		623,853		41,436,316
Martin Marietta Materials, Inc.†		135,922		17,445,589
NewMarket Corp.		133,293		52,088,239
Olin Corp.†		1,263,500		34,885,235
Tredegar Corp.		601,515		13,840,860
				159,696,239
Industrials — 16.0%
Alliant Techsystems, Inc.		208,500		29,638,275
Kaman Corp.		260,778		10,608,449
Matson, Inc.		646,835		15,970,356
MRC Global, Inc.*		962,200		25,940,911
Old Dominion Freight Line, Inc.*		905,194		51,360,708
Ritchie Bros Auctioneers, Inc. (Canada)†		491,475		11,859,292
				145,377,991
Information Technology — 5.7%
Advent Software, Inc.		630,695		18,517,205
Conversant, Inc.*		776,075		21,846,511
Micrel, Inc.		1,071,255		11,869,505
				52,233,221
Energy — 5.0%
Atwood Oceanics, Inc.*		656,056		33,058,662
Kinder Morgan Management LLC*		2		155
World Fuel Services Corp.		277,794		12,250,715
				45,309,532
Consumer Staples — 4.5%
Pricesmart, Inc.		400,645	$	40,437,100
Health Care — 3.8%
Tenet Healthcare Corp.*		806,267		34,516,290
Total Common Stocks			$	894,180,327
Warrants—0.0%
Financials — 0.0%
Tejon Ranch Co., Expiration 08/31/16*		69,345		253,110
Investment Funds— 14.2%
Invesco Government & Agency
Portfolio, Institutional Class,
0.02%**∞Ω		115,115,695		115,115,695
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		13,724,167		13,724,167
Total Investment Funds			$	128,839,862
Total Investment Securities —112.7%
(Cost $784,879,753)			$	1,023,273,299
Liabilities in Excess of Other Assets — (12.7%)				(115,757,199	)
Net Assets — 100.0%			$	907,516,100

* Non-income producing security.

** Represents collateral for securities loaned.

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

† All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2014 was $114,067,841.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

LLC- Limited Liability Company

REIT - Real Estate Investment Trust

28

Touchstone Small Cap Core 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	$	894,180,327	$	—	$	—	$	894,180,327
Warrants
Equity
Contract		253,110		—		—		253,110
Investment
Funds		128,839,862		—		—		128,839,862
							$	1,023,273,299

See accompanying Notes to Financial Statements.

29

Portfolio of Investments

Touchstone Small Cap Value Fund – March 31, 2014 (Unaudited)

			Market
	Shares		Value
Common Stocks— 96.0%
Financials — 26.3%
Astoria Financial Corp.		83,560	$	1,154,799
Brookline Bancorp, Inc.		137,250		1,292,895
Capitol Federal Financial, Inc.		111,947		1,404,935
Capstead Mortgage Corp. REIT†		39,750		503,235
Chemical Financial Corp.		30,800		999,460
CVB Financial Corp.		41,530		660,327
Dime Community Bancshares, Inc.		20,635		350,382
First Financial Bancorp		79,079		1,421,840
FNB Corp.		79,605		1,066,707
Hancock Holding Co.		47,013		1,723,026
Healthcare Realty Trust, Inc. REIT		31,040		749,616
Iberiabank Corp.		11,656		817,668
Infinity Property & Casualty Corp.		17,960		1,214,635
National Bank Holdings Corp. - Class A		62,970		1,263,808
National Penn Bancshares, Inc.		125,455		1,311,005
New Residential Investment Corp., REIT		213,678		1,382,497
Northfield Bancorp, Inc.		31,380		403,547
Northwest Bancshares, Inc.		30,220		441,212
Old National Bancorp.		51,730		771,294
Susquehanna Bancshares, Inc.		103,460		1,178,409
Washington Federal, Inc.		38,990		908,467
Westamerica Bancorporation†		21,505		1,162,990
				22,182,754
Industrials — 21.1%
ABM Industries, Inc.		53,205		1,529,112
Acacia Research Corp.†		74,610		1,140,041
Astec Industries, Inc.		20,590		904,107
Briggs & Stratton Corp.†		24,960		555,360
CLARCOR, Inc.		16,930		970,936
Con-way, Inc.		35,385		1,453,616
Forward Air Corp.		20,390		940,183
General Cable Corp.		36,750		941,168
Granite Construction, Inc.		49,470		1,975,337
Harsco Corp.		28,560		669,161
Herman Miller, Inc.		4,910		157,758
Knight Transportation, Inc.		42,960		993,665
Knoll, Inc.		37,510		682,307
Quanex Building Products Corp.		59,920		1,239,146
Regal-Beloit Corp.		18,845		1,370,220
Resources Connection, Inc.		74,685		1,052,312
Simpson Manufacturing Co., Inc.		32,960		1,164,477
				17,738,906
Consumer Discretionary — 11.8%
Abercrombie & Fitch Co. - Class A		46,970		1,808,345
American Eagle Outfitters, Inc.		118,465		1,450,012
Chico's FAS, Inc.		92,060		1,475,722
Ethan Allen Interiors, Inc.†		44,205		1,125,017
Guess?, Inc.		24,480		675,648
MDC Holdings, Inc.		61,495		1,739,079
Meredith Corp.		12,955		601,501
Stage Stores, Inc.		43,520		1,064,064
				9,939,388
Information Technology — 11.5%
ADTRAN, Inc.		39,170	$	956,140
Brooks Automation, Inc.		94,736		1,035,464
Cohu, Inc.		59,856		642,853
Diebold, Inc.		30,455		1,214,851
Intersil Corp. - Class A		83,557		1,079,556
Micrel, Inc.		184,626		2,045,656
MKS Instruments, Inc.		39,825		1,190,369
Tessera Technologies, Inc.		65,025		1,536,541
				9,701,430
Utilities — 7.3%
California Water Service Group		35,280		844,603
Hawaiian Electric Industries, Inc.†		33,640		855,129
Laclede Group, Inc./The		12,005		566,036
Northwest Natural Gas Co.		25,430		1,119,174
Piedmont Natural Gas Co., Inc.†		22,690		802,999
Portland General Electric Co.		29,820		964,379
UIL Holdings Corp.		27,330		1,006,017
				6,158,337
Materials — 6.9%
Axiall Corp.		33,670		1,512,456
Cabot Corp.		20,270		1,197,146
Greif, Inc. - Class A		22,560		1,184,174
Haynes International, Inc.		10,535		568,890
Kronos Worldwide, Inc.		78,350		1,306,878
				5,769,544
Energy — 6.8%
Comstock Resources, Inc.		215		4,913
Delek U.S. Holdings, Inc.		59,680		1,733,107
PBF Energy, Inc. - Class A		44,910		1,158,678
Precision Drilling Corp. (Canada)		55,270		661,582
Tidewater, Inc.		34,305		1,667,909
Tsakos Energy Navigation Ltd.		59,290		460,090
				5,686,279
Consumer Staples — 3.4%
Dean Foods Co.		65,975		1,019,974
Snyder's-Lance, Inc.		12,900		363,651
Universal Corp.†		26,850		1,500,646
				2,884,271
Health Care — 0.9%
STERIS Corp.		15,475		738,931
Total Common Stocks			$	80,799,840
Investment Funds— 6.7%
Invesco Government & Agency
Portfolio, Institutional Class,
0.02%**∞Ω		5,379,679		5,379,679
Touchstone Institutional Money Market
Fund, 0.01%^∞Ω		260,833		260,833
Total Investment Funds			$	5,640,512

30

Touchstone Small Cap Value Fund (Unaudited) (Continued)

	Market
	Value
Total Investment Securities —102.7%
(Cost $79,495,245)	$	86,440,352
Liabilities in Excess of Other Assets — (2.7%)		(2,255,757	)
Net Assets — 100.0%	$	84,184,595

** Represents collateral for securities loaned.

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

† All or a portion of the security is on loan. The total market value of the securities on loan as of March 31, 2014 was $5,204,279.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

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	$	80,799,840	$	—	$	—	$	80,799,840
Investment
Funds		5,640,512		—		—		5,640,512
							$	86,440,352

See accompanying Notes to Financial Statements.

31

Portfolio of Investments

Touchstone Total Return Bond Fund – March 31, 2014 (Unaudited)

Principal			Market
Amount			Value
		Corporate Bonds— 38.3%
		Industrials — 11.3%
$	53,805	Astro Offshore Corp.,
		6.000%, 12/20/19	$	57,448
	104,027	Burlington Northern and Santa Fe
		Railway Co. 1998-C Pass Through
		Trust, 6.230%, 7/2/18		110,551
	115,986	Burlington Northern and Santa Fe
		Railway Co. 2004-1 Pass Through
		Trust, 4.575%, 1/15/21		124,357
	434,459	Burlington Northern and Santa Fe
		Railway Co. 2005-3 Pass Through
		Trust, 4.830%, 1/15/23		466,013
	947,885	Burlington Northern and Santa Fe
		Railway Co. 2005-4 Pass Through
		Trust, 4.967%, 4/1/23		1,028,703
	372,000	Canal Barge Co., Inc., 4.500%, 11/12/34		414,490
	1,822,428	Continental Airlines 2000-2 Class A-1
		Pass Through Trust, 7.707%, 4/2/21		2,082,124
	680,388	CSX Transportation, Inc.,
		6.251%, 1/15/23		787,889
	1,591,122	Delta Air Lines 2010-2 Class A Pass
		Through Trust, 4.950%, 5/23/19		1,734,323
	1,332,505	Federal Express Corp. 1998 Pass
		Through Trust, 6.845%, 1/15/19		1,479,080
	115,252	Federal Express Corp. 1999 Pass
		Through Trust, 7.650%, 1/15/22		140,608
	182,000	Matson Navigation Co., Inc.,
		5.337%, 9/4/28		200,781
	1,027,000	Republic Services, Inc.,
		5.250%, 11/15/21		1,148,077
	1,219,396	Southwest Airlines Co. 2007-1 Pass
		Through Trust, 6.150%, 8/1/22		1,402,305
	147,001	Sterling Equipment, 6.125%, 9/28/19		162,314
	83,696	Union Pacific Railroad Co. 2001 Pass
		Through Trust, 6.630%, 1/27/22		96,383
	959,227	Union Pacific Railroad Co. 2003 Pass
		Through Trust, 4.698%, 1/2/24		1,027,768
	546,926	Union Pacific Railroad Co. 2006 Pass
		Through Trust, 5.866%, 7/2/30		628,539
	1,686,000	United Rentals North America, Inc.,
		9.250%, 12/15/19		1,863,873
	1,625,000	Vessel Management Services, Inc.,
		5.125%, 4/16/35		1,827,820
				16,783,446
		Financials — 10.2%
	1,885,000	American Express Co.,
		2.650%, 12/2/22		1,790,776
	1,216,000	Delphi Financial Group, Inc.,
		7.875%, 1/31/20		1,432,206
	713,250	EJM Airport LLC, 6.271%, 5/15/20		816,975
	2,000,000	Fishers Lane Associates LLC, 144a,
		3.666%, 8/5/30		1,923,058
	1,604,000	General Electric Capital Corp. MTN,
		5.625%, 5/1/18		1,833,181
	1,500,000	Provident Cos., Inc., 7.000%, 7/15/18		1,698,654
	2,000,000	Torchmark Corp., 3.800%, 9/15/22		1,996,474
	2,000,000	USB Capital IX, 3.500%, 10/29/49(A)		1,669,999
	2,000,000	Wachovia Capital Trust III,
		5.570%, 3/29/49(A)		1,922,500
				15,083,823
		Utilities — 7.8%
	1,689,490	Bruce Mansfield Unit, 6.850%, 6/1/34		1,830,911
	450,000	California Water Service Co.,
		5.500%, 12/1/40		516,676
	1,600,000	Commonwealth Edison Co.,
		5.900%, 3/15/36		1,941,699
	1,780,000	Dominion Resources, Inc.,
		2.534%, 9/30/66(A)		1,644,713
	1,700,000	Entergy Louisiana LLC,
		4.440%, 1/15/26		1,796,788
	2,000,000	NextEra Energy Capital Holdings, Inc.,
		6.350%, 10/1/66(A)		1,965,000
	1,800,000	South Carolina Electric & Gas Co.,
		4.600%, 6/15/43		1,856,932
				11,552,719
		Energy — 3.1%
	1,253,000	Chesapeake Energy Corp.,
		6.625%, 8/15/20		1,406,492
	1,551,000	Petrobras International Finance Co. -
		Pifco, 3.500%, 2/6/17		1,567,754
	1,500,000	Petroleos Mexicanos (Mexico),
		4.875%, 1/24/22		1,567,499
				4,541,745
		Telecommunication Services — 2.2%
	1,500,000	SBA Tower Trust, 144a,
		4.254%, 4/15/15		1,550,414
	1,500,000	Verizon Communications, Inc.,
		6.000%, 4/1/41		1,700,066
				3,250,480
		Consumer Staples — 2.1%
	1,285,529	American Airlines 2011-1 Class B Pass
		Through Trust, 144a,
		7.000%, 1/31/18		1,391,585
	1,508,308	CVS Pass-Through Trust,
		6.036%, 12/10/28		1,694,141
				3,085,726
		Transportation — 0.8%
	1,056,000	Totem Ocean Trailer Express, Inc.,
		6.365%, 4/15/28		1,188,095
		Health Care — 0.8%
	1,075,000	HCA, Inc., 7.250%, 9/15/20		1,162,344
		Total Corporate Bonds		56,648,378
		Asset-Backed Securities — 21.3%
	1,365,277	321 Henderson Receivables I LLC, Ser
		2012-1A, Class A, 144a,
		4.210%, 2/16/65		1,405,061

32

Touchstone Total Return Bond Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Asset-Backed Securities — 21.3% (Continued)
$	1,312,076	321 Henderson Receivables I LLC, Ser
		2012-2A, Class A, 144a,
		3.840%, 10/15/59	$	1,314,118
	575,000	FPL Recovery Funding LLC, Ser
		2007-A, Class A4, 5.256%, 8/1/21		640,250
	1,325,000	JCP&L Transition Funding LLC, Ser
		2006-A, Class A4, 5.610%, 6/5/23		1,536,078
	61,436	Small Business Administration
		Participation Certificates, Ser
		2001-20A, Class 1, 6.290%, 1/1/21		66,453
	336,068	Small Business Administration
		Participation Certificates, Ser
		2002-20H, Class 1, 5.310%, 8/1/22		363,123
	328,233	Small Business Administration
		Participation Certificates, Ser
		2003-20B, Class 1, 4.840%, 2/1/23		352,456
	99,715	Small Business Administration
		Participation Certificates, Ser
		2003-20D, Class 1, 4.760%, 4/1/23		107,350
	79,870	Small Business Administration
		Participation Certificates, Ser
		2004-20D, Class 1, 4.770%, 4/1/24		84,949
	651,546	Small Business Administration
		Participation Certificates, Ser
		2004-20K, Class 1, 4.880%, 11/1/24		701,930
	42,272	Small Business Administration
		Participation Certificates, Ser
		2005-10E, Class 1, 4.540%, 9/1/15		43,073
	374,532	Small Business Administration
		Participation Certificates, Ser
		2005-20B, Class 1, 4.625%, 2/1/25		396,785
	342,166	Small Business Administration
		Participation Certificates, Ser
		2005-20H, Class 1, 5.110%, 8/1/25		370,554
	1,647,766	Small Business Administration
		Participation Certificates, Ser
		2006-20B, Class 1, 5.350%, 2/1/26		1,798,382
	584,231	Small Business Administration
		Participation Certificates, Ser
		2006-20H, Class 1, 5.700%, 8/1/26		638,453
	1,429,462	Small Business Administration
		Participation Certificates, Ser
		2006-20K, Class 1, 5.360%, 11/1/26		1,544,015
	1,116,307	Small Business Administration
		Participation Certificates, Ser
		2006-20L, Class 1, 5.120%, 12/1/26		1,201,178
	1,209,668	Small Business Administration
		Participation Certificates, Ser
		2007-20A, Class 1, 5.320%, 1/1/27		1,320,319
	1,554,967	Small Business Administration
		Participation Certificates, Ser
		2007-20E, Class 1, 5.310%, 5/1/27		1,710,947
	619,285	Small Business Administration
		Participation Certificates, Ser
		2007-20F, Class 1, 5.710%, 6/1/27		687,728
	1,409,561	Small Business Administration
		Participation Certificates, Ser
		2007-20L, Class 1, 5.290%, 12/1/27		1,534,673
	842,402	Small Business Administration
		Participation Certificates, Ser
		2008-20A, Class 1, 5.170%, 1/1/28		926,681
	1,032,723	Small Business Administration
		Participation Certificates, Ser
		2008-20K, Class 1, 6.770%, 11/1/28		1,182,056
	1,216,293	Small Business Administration
		Participation Certificates, Ser
		2009-20B, Class 1, 4.760%, 2/1/29		1,329,431
	1,171,637	Small Business Administration
		Participation Certificates, Ser
		2009-20C, Class 1, 4.660%, 3/1/29		1,278,076
	309,718	Small Business Administration
		Participation Certificates, Ser
		2009-20D, Class 1, 4.310%, 4/1/29		331,640
	1,498,998	Small Business Administration
		Participation Certificates, Ser
		2009-20E, Class 1, 4.430%, 5/1/29		1,608,502
	999,977	Small Business Administration
		Participation Certificates, Ser
		2009-20F, Class 1, 4.950%, 6/1/29		1,098,718
	1,537,894	Small Business Administration
		Participation Certificates, Ser
		2009-20J, Class 1, 3.920%, 10/1/29		1,609,068
	1,472,155	Small Business Administration
		Participation Certificates, Ser
		2010-20F, Class 1, 3.880%, 6/1/30		1,544,443
	1,039,845	Small Business Administration
		Participation Certificates, Ser
		2010-20I, Class 1, 3.210%, 9/1/30		1,048,504
	1,704,382	Small Business Administration
		Participation Certificates, Ser
		2012-10C, Class 1, 1.240%, 5/1/22		1,684,743
		Total Asset-Backed Securities	$	31,459,737
		U.S. Government Mortgage-Backed
		Obligations — 15.8%
	378,384	FHLMC, Pool #A89148,
		4.000%, 10/1/39		392,670
	227,686	FNMA, Pool #465711, 4.680%, 8/1/28		240,477
	1,634,448	FNMA, Pool #469616, 3.500%, 11/1/21		1,704,439
	1,700,000	FNMA, Pool #469667, 3.540%, 12/1/21		1,736,089
	117,276	FNMA, Pool #874210, 5.260%, 1/1/25		130,061
	108,957	FNMA, Pool #888829, 5.832%, 6/1/37		122,635
	171,526	FNMA, Pool #958736, 4.940%, 5/1/19		190,130
	319,257	FNMA, Pool #AB1152, 4.000%, 6/1/25		338,053
	442,164	FNMA, Pool #AD0101, 4.879%, 7/1/19		490,891
	492,690	FNMA, Pool #AD0166, 4.864%, 8/1/19		547,221
	187,572	FNMA, Pool #AD0342, 4.637%, 10/1/19		206,592
	450,733	FNMA, Pool #AD0786, 4.501%, 1/1/20		494,628
	524,603	FNMA, Pool #AD0910, 4.602%, 4/1/20		575,289
	103,117	FNMA, Pool #AD1608, 4.000%, 2/1/25		109,220
	547,128	FNMA, Pool #AE0209, 4.331%, 6/1/20		596,798

33

Touchstone Total Return Bond Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		U.S. Government Mortgage-Backed
		Obligations — 15.8% (Continued)
$	1,459,365	FNMA, Pool #AE0446, 4.087%, 9/1/20	$	1,574,152
	814,697	FNMA, Pool #AE2771, 3.500%, 8/1/26		855,272
	618,310	FNMA, Pool #AE8886, 3.500%, 12/1/25		648,665
	359,427	FNMA, Pool #AH1519, 3.500%, 12/1/25		377,085
	380,659	FNMA, Pool #AH8854, 4.500%, 4/1/41		406,607
	632,192	FNMA, Pool #AI1856, 4.500%, 5/1/41		678,492
	343,325	FNMA, Pool #AL0247, 4.000%, 4/1/41		358,172
	1,980,532	FNMA, Pool #AM0566, 1.940%, 9/1/19		1,981,182
	1,408,527	FNMA, Pool #AT0924, 2.000%, 3/1/28		1,361,607
	1,903,682	GNMA, Pool #5276, 3.000%, 1/20/27		1,974,207
	2,021,240	GNMA, Pool #710077, 4.700%, 5/20/61		2,202,109
	279,311	GNMA, Pool #751408, 4.826%, 6/20/61		310,177
	790,013	GNMA, Pool #751409, 4.626%, 7/20/61		860,972
	515,500	GNMA, Pool #752631,
		4.500%, 10/20/40		558,400
	710,097	GNMA, Pool #756686, 4.697%, 9/20/61		776,031
	550,909	GNMA, Pool #757327, 4.295%, 7/20/61		598,328
		Total U.S. Government
		Mortgage-Backed Obligations	$	23,396,651
		Agency Collateralized Mortgage
		Obligations — 8.2%
	1,000,000	FREMF Mortgage Trust, Ser 2011-K702,
		Class B, 144a, 4.771%, 4/25/44(A)		1,064,439
	1,000,000	FREMF Mortgage Trust, Ser 2012-K19,
		Class B, 144a, 4.037%, 5/25/45(A)		992,879
	1,035,000	FREMF Mortgage Trust, Ser 2012-K710,
		Class B, 144a, 3.819%, 6/25/47(A)		1,051,502
	31,456	GNMA, Ser 2009-114, Class A,
		3.103%, 12/16/38		31,701
	239,834	GNMA, Ser 2009-27, Class B,
		4.353%, 2/16/41		243,211
	77,546	GNMA, Ser 2009-86, Class A,
		3.536%, 9/16/35		78,807
	34,919	GNMA, Ser 2010-22, Class AD,
		3.633%, 10/16/39		34,905
	290,483	GNMA, Ser 2010-49, Class A,
		2.870%, 3/16/51		293,318
	1,500,000	GNMA, Ser 2011-1, Class B,
		4.344%, 6/16/41(A)		1,560,173
	943,517	GNMA, Ser 2011-147, Class A,
		2.174%, 7/16/38		950,905
	913,986	GNMA, Ser 2011-31, Class A,
		2.210%, 12/16/35		920,228
	343,601	GNMA, Ser 2011-47, Class A,
		2.070%, 4/16/32		344,391
	573,803	GNMA, Ser 2012-22, Class AB,
		1.661%, 3/16/33		574,290
	2,388,310	GNMA, Ser 2012-53, Class AC,
		2.381%, 12/16/43		2,350,985
	1,705,893	GNMA, Ser 2013-40, Class AC,
		1.584%, 1/16/46		1,667,548
		Total Agency Collateralized
		Mortgage Obligations	$	12,159,282
		Commercial Mortgage-Backed Securities — 4.6%
	1,675,000	Citigroup Commercial Mortgage Trust,
		Ser 2007-C6, Class A4,
		5.694%, 12/10/49(A)		1,865,898
	505,000	Citigroup/Deutsche Bank Commercial
		Mortgage Trust, Ser 2006-CD3,
		Class AJ, 5.688%, 10/15/48		484,931
	1,190,750	Commercial Mortgage Trust, Ser
		2005-GG5, Class A5,
		5.224%, 4/10/37(A)		1,248,166
	1,298,467	GS Mortgage Securities Corp. II, Ser
		2007-GG10, Class A4,
		5.819%, 8/10/45(A)		1,439,891
	200,000	JP Morgan Chase Commercial
		Mortgage Securities Corp., Ser
		2005-LDP4, Class AM,
		4.999%, 10/15/42(A)		210,586
	107,424	JP Morgan Chase Commercial
		Mortgage Securities Corp., Ser
		2006-CB17, Class A3,
		5.450%, 12/12/43		107,253
	1,400,000	ML-CFC Commercial Mortgage Trust,
		Ser 2006-3, Class AM,
		5.456%, 7/12/46(A)		1,520,539
		Total Commercial
		Mortgage-Backed Securities	$	6,877,264
		Municipal Bonds — 4.8%
		California—0.9%
	1,394,421	CA State HFA Resiential Mortgage Rev,
		Ser A, 2.900%, 2/1/42		1,345,783
		Florida—1.0%
	1,519,648	FL State HFC Rev, Homeownership
		Mortgage Special Project,
		2.800%, 7/1/41		1,479,758
		Missouri—1.0%
	1,505,000	MO State Housing Development
		Commission, Special
		Homeownership Loan Program, Ser
		C, 2.650%, 11/1/40		1,430,969
		Texas—0.9%
	1,445,000	TX State Dept of Housing, Ser A,
		2.800%, 3/1/36		1,384,772
		Virginia—1.0%
	1,498,091	VA State Housing Development
		Authority, Pass Thru Ser C,
		2.750%, 4/25/42		1,406,048
		Total Municipal Bonds	$	7,047,330
		U.S. Treasury Obligations — 2.4%
	4,150,000	U.S. Treasury Strip, Principal,
		0.000%, 5/15/40#		1,598,655

34

Touchstone Total Return Bond Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		U.S. Treasury Obligations — 2.4% (Continued)
$	5,650,000	U.S. Treasury Strip, Principal,
		0.000%, 5/15/43#	$	1,900,264
		Total U.S. Treasury Obligations	$	3,498,919
		U.S. Government Agency Obligations — 1.3%
	25,195	FHA USGI, 7.430%, 8/1/23		25,195
	36,583	Small Business Administration
		Participation Certificates,
		6.150%, 2/1/18		38,542
	125,998	Small Business Administration
		Participation Certificates, Ser
		2001-20K, Class 1, 5.340%, 11/1/21		136,126
	1,650,000	Tennessee Valley Authority,
		4.650%, 6/15/35		1,738,762
		Total U.S. Government Agency
		Obligations	$	1,938,625
		Sovereign Government Obligations — 1.2%
	7,317	Ecuador Government AID Bond,
		7.050%, 5/1/15		7,588
	1,505,000	Israel Government AID Bond,
		5.500%, 9/18/33		1,830,507
		Total Sovereign Government
		Obligations	$	1,838,095

Shares
		Investment Fund — 1.7%
	2,487,314	Touchstone Institutional Money
		Market Fund, 0.01%^∞Ω		2,487,314
		Total Investment Securities —99.6%
		(Cost $147,536,809)	$	147,351,595
		Other Assets in Excess of
		Liabilities — 0.4%		545,124
		Net Assets — 100.0%	$	147,896,719

# Strip Security - Separate trading of Registered Interest and Principal. Holders of a principal strip security are entitled to the portion of the payment representing principal only.

^(A) Variable rate security - Rate reflected is the rate in effect as of March 31, 2014.

^ Affiliated Fund. See Note4 in Notes to Financial Statements.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

AID - Agency for International Development

FHA - Federal Housing Administration

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

FREMF - Finnish Real Estate Management Federation

GNMA - Government National Mortgage Association

HFA - Housing Finance Authority/Agency

HFC - Housing Finance Corporation

LLC - Limited Liability Company

MTN - Medium Term Note

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 March 31, 2014, these securities were valued at $10,693,056 or 7.2% of net assets. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.

35

Touchstone Total Return Bond 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
Corporate
Bonds	$	—	$	56,648,378	$	—	$	56,648,378
Asset-Backed
Securities		—		31,459,737		—		31,459,737
U.S.
Government
Mortgage-Backed
Obligations		—		23,396,651		—		23,396,651
Agency
Collateralized
Mortgage
Obligations		—		12,159,282		—		12,159,282
Commercial
Mortgage-Backed
Securities		—		6,877,264		—		6,877,264
Municipal
Bonds		—		7,047,330		—		7,047,330
U.S. Treasury
Obligations		—		3,498,919		—		3,498,919
U.S.
Government
Agency
Obligations		—		1,938,625		—		1,938,625
Sovereign
Government
Obligations		—		1,838,095		—		1,838,095
Investment
Fund		2,487,314		—		—		2,487,314
							$	147,351,595

See accompanying Notes to Financial Statements.

36

Portfolio of Investments

Touchstone Ultra Short Duration Fixed Income Fund – March 31, 2014 (Unaudited)

Principal			Market
Amount			Value
		Corporate Bonds— 28.6%
		Financials — 6.7%
$	250,000	American International Group, Inc.,
		3.000%, 3/20/15	$	255,973
	3,750,000	Arden Realty LP, 5.250%, 3/1/15		3,867,109
	3,000,000	Bank of America Corp.,
		5.000%, 1/15/15		3,103,437
	500,000	Bank of America Corp.,
		5.450%, 9/15/16		540,107
	134,000	Bank of America Corp.,
		7.800%, 9/15/16		153,253
	500,000	Barclays Bank PLC, 5.200%, 7/10/14		506,542
	1,247,000	Citigroup, Inc., 5.000%, 9/15/14		1,271,148
	5,200,000	Duke Realty LP, 7.375%, 2/15/15		5,495,100
	720,000	ERP Operating LP, REIT,
		5.250%, 9/15/14		734,789
	370,000	Farmers Insurance Exchange, 144a,
		6.000%, 8/1/14		375,288
	1,650,000	General Electric Capital Corp.,
		1.000%, 12/11/15		1,661,626
	3,500,000	Genworth Financial, Inc.,
		5.750%, 6/15/14		3,538,857
	1,450,000	Goldman Sachs Group, Inc. (The)
		MTN, 6.000%, 5/1/14		1,456,381
	525,000	Hartford Financial Services Group, Inc.,
		5.500%, 10/15/16		581,021
	500,000	HSBC Finance Corp., 5.500%, 1/19/16		540,000
	625,000	JPMorgan Chase & Co., 4.750%, 3/1/15		648,605
	7,200,000	Kayne Anderson MLP Investment Co.,
		1.485%, 8/19/16(A)		7,216,819
	555,000	KeyBank NA/Cleveland OH,
		7.413%, 5/6/15		592,597
	700,000	Kimco Realty Corp., 4.820%, 6/1/14		704,233
	1,750,000	Mack-Cali Realty LP, REIT,
		2.500%, 12/15/17		1,757,290
	1,000,000	Mack-Cali Realty LP, REIT,
		5.125%, 1/15/15		1,030,651
	600,000	Mellon Funding Corp.,
		5.000%, 12/1/14		617,844
	3,000,000	MetLife Institutional Funding II, 144a,
		0.600%, 1/6/15(A)		3,008,451
	525,000	Metropolitan Life Insurance Co., 144a,
		7.700%, 11/1/15		579,218
	250,000	Morgan Stanley, 4.750%, 4/1/14		249,999
	1,780,000	Morgan Stanley MTN, 6.000%, 5/13/14		1,790,975
	360,000	Prudential Covered Trust 2012-1, 144a,
		2.997%, 9/30/15		369,535
	1,800,000	Regency Centers LP, 4.950%, 4/15/14		1,801,796
	775,000	SunTrust Bank/Atlanta GA,
		0.533%, 4/1/15(A)		773,389
	500,000	UBS AG/Stamford CT, 3.875%, 1/15/15		513,420
	450,000	Ventas Realty LP / Ventas Capital
		Corp., 3.125%, 11/30/15		466,970
	500,000	Vornado Realty LP, 4.250%, 4/1/15		513,260
	330,000	Wachovia Corp., 5.250%, 8/1/14		335,238
	180,800	WHC-IRS Trust, 6.980%, 5/15/15		183,060
				47,233,981
		Utilities — 6.4%
	3,500,000	AGL Capital Corp., 4.950%, 1/15/15		3,612,312
	5,000,000	Alliant Energy Corp., 4.000%, 10/15/14		5,090,325
	900,000	Consolidated Edison Co. of New York,
		Inc., 5.550%, 4/1/14		900,000
	6,500,000	Jemena Ltd., 144a, 5.300%, 9/25/15		6,807,860
	1,155,000	NorthWestern Corp., 6.040%, 9/1/16		1,293,911
	500,000	NSTAR Electric Co., 4.875%, 4/15/14		500,736
	1,100,000	OGE Energy Corp., 5.000%, 11/15/14		1,128,486
	3,700,000	Oncor Electric Delivery Co. LLC,
		6.375%, 1/15/15		3,861,028
	7,000,000	PG&E Corp., 5.750%, 4/1/14		7,000,000
	2,895,000	PPL Energy Supply LLC,
		5.400%, 8/15/14		2,946,913
	6,500,000	Scottish Power Ltd., 5.375%, 3/15/15		6,774,566
	2,879,000	Trans-Allegheny Interstate Line Co.,
		144a, 4.000%, 1/15/15		2,948,289
	1,675,000	Westar Energy, Inc., 6.000%, 7/1/14		1,697,949
				44,562,375
		Energy — 5.9%
	4,300,000	Continental Resources, Inc./OK,
		7.125%, 4/1/21		4,864,375
	1,900,000	Enterprise Products Operating LLC,
		5.600%, 10/15/14		1,950,920
	288,146	Maritimes & Northeast Pipeline LLC,
		144a, 7.500%, 5/31/14		290,581
	315,000	Noble Energy, Inc., 5.250%, 4/15/14		315,485
	5,550,000	Petrobras International Finance Co.,
		2.875%, 2/6/15		5,622,150
	5,000,000	Petrobras International Finance Co.,
		3.875%, 1/27/16		5,134,695
	4,860,000	Plains Exploration & Production Co.,
		6.625%, 5/1/21		5,321,700
	10,932,000	Southeast Supply Header LLC, 144a,
		4.850%, 8/15/14		11,078,172
	6,080,000	Spectra Energy Capital LLC,
		5.668%, 8/15/14		6,188,528
	905,000	Valero Energy Corp., 4.750%, 4/1/14		905,000
				41,671,606
		Consumer Discretionary — 3.0%
	6,525,000	Glencore Funding LLC, 144a,
		6.000%, 4/15/14		6,536,732
	2,325,000	Time Warner Cable, Inc.,
		5.850%, 5/1/17		2,613,932
	7,444,000	Time Warner Cable, Inc.,
		7.500%, 4/1/14		7,444,000
	4,500,000	Toyota Motor Credit Corp. MTN,
		0.750%, 3/3/17(B)		4,480,412
				21,075,076
		Materials — 1.9%
	1,800,000	Bemis Co., Inc., 5.650%, 8/1/14		1,830,125
	2,225,000	Glencore Canada Corp.,
		5.375%, 6/1/15		2,332,548
	500,000	Potash Corp. of Saskatchewan, Inc.,
		5.250%, 5/15/14		502,700

37

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Corporate Bonds — 28.6% (Continued)
		Materials — (Continued)
$	2,500,000	Rio Tinto Finance USA Ltd.,
		2.500%, 5/20/16	$	2,580,982
	2,250,000	Rio Tinto Finance USA Ltd.,
		8.950%, 5/1/14		2,265,068
	1,875,000	Vale Canada Ltd., 5.700%, 10/15/15		2,005,476
	1,800,000	Yara International ASA, 144a,
		5.250%, 12/15/14		1,851,493
				13,368,392
		Industrials — 1.6%
	1,875,000	Air Lease Corp., 5.625%, 4/1/17		2,071,875
	418,500	CSX Transportation, Inc.,
		8.375%, 10/15/14		435,241
	4,500,000	Dun & Bradstreet Corp. (The),
		3.250%, 12/1/17		4,652,582
	300,000	Equifax, Inc., 4.450%, 12/1/14		307,396
	450,000	Joy Global, Inc., 6.000%, 11/15/16		500,532
	56,259	Petrodrill Five Ltd., 4.390%, 4/15/16		58,080
	58,345	Petrodrill Four Ltd., 4.240%, 1/15/16		59,873
	400,000	Ryder System, Inc. MTN,
		7.200%, 9/1/15		433,948
	2,500,000	Union Pacific Railroad Co. 2004 Pass
		Through Trust, 144a,
		5.214%, 9/30/14		2,544,142
				11,063,669
		Health Care — 1.3%
	8,791,000	CareFusion Corp., 5.125%, 8/1/14		8,919,507
		Telecommunication Services — 0.9%
	82,070	BellSouth Telecommunications, Inc.,
		6.300%, 12/15/15		85,062
	650,000	SBA Tower Trust, 144a,
		4.254%, 4/15/15		671,846
	5,300,000	Verizon Communications, Inc.,
		2.000%, 11/1/16		5,422,239
				6,179,147
		Information Technology — 0.5%
	3,198,000	Amphenol Corp., 4.750%, 11/15/14		3,277,937
	450,000	Hewlett-Packard Co., 3.000%, 9/15/16		469,830
				3,747,767
		Consumer Staples — 0.4%
	2,500,000	Andrew W Mellon Foundation,
		3.950%, 8/1/14		2,530,320
		Total Corporate Bonds	$	200,351,840
		Asset-Backed Securities — 26.1%
	630,000	Ally Auto Receivables Trust, Ser
		2010-5, Class B, 144a,
		2.450%, 6/15/16		637,661
	3,751,804	American Credit Acceptance
		Receivables Trust, Ser 2012-3, Class
		A, 144a, 1.640%, 11/15/16		3,761,038
	2,685,000	AmeriCredit Automobile Receivables,
		Ser 2010-1, Class D, 6.650%, 7/17/17		2,705,068
	2,750,000	AmeriCredit Automobile Receivables,
		Ser 2010-2, Class D, 6.240%, 6/8/16		2,813,698
	1,289,122	AmeriCredit Automobile Receivables,
		Ser 2010-3, Class C, 3.340%, 4/8/16		1,304,886
	3,124,267	AmeriCredit Automobile Receivables
		Trust, Ser 2010-1, Class C,
		5.190%, 8/17/15		3,138,895
	1,629,687	AmeriCredit Automobile Receivables
		Trust, Ser 2010-2, Class C,
		4.520%, 10/8/15		1,635,624
	1,550,000	AmeriCredit Automobile Receivables
		Trust, Ser 2010-2, Class E, 144a,
		8.660%, 10/10/17		1,604,165
	12,428	AmeriCredit Automobile Receivables
		Trust, Ser 2011-3, Class A3,
		1.170%, 1/8/16		12,429
	445,000	AmeriCredit Automobile Receivables
		Trust, Ser 2011-3, Class B,
		2.280%, 6/8/16		446,711
	1,404,784	AmeriCredit Automobile Receivables
		Trust, Ser 2011-4, Class A3,
		1.170%, 5/9/16		1,406,166
	3,000,000	AmeriCredit Automobile Receivables
		Trust, Ser 2011-5, Class C,
		3.440%, 10/8/17		3,095,625
	285,000	AmeriCredit Automobile Receivables
		Trust, Ser 2012-1, Class B,
		1.730%, 2/8/17		287,585
	220,000	AmeriCredit Automobile Receivables
		Trust, Ser 2012-2, Class B,
		1.780%, 3/8/17		222,635
	700,000	AmeriCredit Automobile Receivables
		Trust, Ser 2012-3, Class A3,
		0.960%, 1/9/17		701,843
	1,325,000	AmeriCredit Automobile Receivables
		Trust, Ser 2012-3, Class B,
		1.590%, 7/10/17		1,337,362
	580,000	AmeriCredit Automobile Receivables
		Trust, Ser 2012-4, Class A3,
		0.670%, 6/8/17		580,858
	2,013,634	Ascentium Equipment Receivables
		LLC, Ser 2012-1A, Class A, 144a,
		1.830%, 9/15/19		2,012,470
	5,750,000	Ascentium Equipment Receivables
		LLC, Ser 2014-1A, Class A2, 144a,
		1.040%, 1/10/17		5,747,079
	4,104,921	AXIS Equipment Finance Receivables
		II LLC, Ser 2013-1A, Class A, 144a,
		1.750%, 3/20/17		4,105,865
	2,594,578	California Republic Auto Receivables
		Trust, Ser 2012-1, Class A, 144a,
		1.180%, 8/15/17		2,605,044

38

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Asset-Backed Securities—26.1% (Continued)
$	585,000	Capital Auto Receivables Asset Trust,
		Ser 2013-1, Class A3,
		0.790%, 6/20/17	$	585,268
	158,638	CarMax Auto Owner Trust, Ser 2012-1,
		Class A3, 0.890%, 9/15/16		159,065
	3,566,653	CarNow Auto Receivables Trust, Ser
		2013-1A, Class A, 144a,
		1.160%, 10/16/17		3,565,765
	2,750,000	CFC 2012-1 LLC, Ser 2014-1A, Class A,
		144a, 1.460%, 12/17/18		2,749,672
	2,656,929	CFC 2013-1 LLC, Ser 2013-1A, Class A,
		144a, 1.650%, 7/17/17		2,666,391
	7,754,864	CFC 2013-2 LLC, Ser 2013-2A, Class A,
		144a, 1.750%, 11/15/17		7,776,066
	193,960	Citigroup Mortgage Loan Trust, Inc.,
		Ser 2005-WF1, Class A3,
		5.000%, 11/25/34(A)		194,895
	183,029	CNH Equipment Trust, Ser 2011-C,
		Class A3, 1.190%, 12/15/16		183,619
	88,478	College & University Facility Loan
		Trust, Ser 2 Class D, 4.000%, 6/1/18		89,539
	1,998,653	Countrywide Asset-Backed
		Certificates, Ser 2005-6, Class M1,
		0.644%, 12/25/35(A)		1,987,922
	2,422,350	Direct Capital Funding V LLC, Ser
		2013-2, Class A1, 144a,
		0.700%, 9/20/14		2,424,366
	1,665,350	DT Auto Owner Trust, Ser 2011-1A,
		Class D, 144a, 4.890%, 1/17/17		1,667,725
	2,995,413	DT Auto Owner Trust, Ser 2013-2A,
		Class A, 144a, 0.810%, 9/15/16		2,998,106
	345,509	Entergy Texas Restoration Funding
		LLC, Ser 2009-A, Class A1,
		2.120%, 2/1/16		348,516
	4,995,813	Exeter Automobile Receivables Trust,
		Ser 2013-1A, Class A, 144a,
		1.290%, 10/16/17		5,003,352
	2,744,973	Exeter Automobile Receivables Trust,
		Ser 2013-2A, Class A, 144a,
		1.490%, 11/15/17		2,755,442
	4,250,000	First Investors Auto Owner Trust, Ser
		2011-1, Class D, 144a,
		4.490%, 10/17/16		4,256,162
	950,000	First Investors Auto Owner Trust, Ser
		2011-1, Class E, 144a,
		7.170%, 2/15/18		952,185
	5,750,000	First Investors Auto Owner Trust, Ser
		2013-3A, Class A2, 144a,
		0.890%, 9/15/17		5,756,785
	121,940	Ford Credit Auto Lease Trust, Ser
		2012-A, Class A3, 0.850%, 1/15/15		121,980
	1,050,000	Ford Credit Auto Owner Trust, Ser
		2010-B, Class B, 2.540%, 2/15/16		1,064,308
	430,000	GE Capital Credit Card Master Note
		Trust, Ser 2012-1, Class A,
		1.030%, 1/15/18		431,628
	127,151	GE Equipment Small Ticket LLC, Ser
		2011-2A, Class A3, 144a,
		1.370%, 6/22/15		127,436
	525,000	Great America Leasing Receivables,
		Ser 2013-1, Class A3, 144a,
		0.780%, 6/15/16		525,935
	73,131	Harley-Davidson Motorcycle Trust, Ser
		2011-1, Class A3, 0.960%, 5/16/16		73,192
	430,000	Harley-Davidson Motorcycle Trust, Ser
		2011-1, Class A4, 1.310%, 3/15/17		432,474
	427,218	Honda Auto Receivables Owner Trust,
		Ser 2011-3, Class A3,
		0.880%, 9/21/15		427,987
	4,281,802	Madison Avenue Manufactured
		Housing Contract, Ser 2002-A, Class
		M2, 2.404%, 3/25/32(A)		4,278,467
	5,100,687	Marriott Vacation Club Owner Trust,
		Ser 2009-2A, Class A, 144a,
		4.809%, 7/20/31		5,225,781
	408,614	MMAF Equipment Finance LLC, Ser
		2009-AA, Class A4, 144a,
		3.510%, 1/15/30		417,696
	114,460	MMAF Equipment Finance LLC, Ser
		2011-AA, Class A3, 144a,
		1.270%, 9/15/15		114,630
	202,598	Montana Higher Education Student
		Assistance Corp., Ser 2012-1, Class
		A1, 0.757%, 9/20/22(A)		202,473
	136,504	Navistar Financial Owner Trust, Ser
		2012-A, Class A2, 144a,
		0.850%, 3/18/15		136,535
	4,054,703	Navitas Equipment Receivables LLC,
		Ser 2013-1, Class A, 144a,
		1.950%, 11/15/16		4,055,688
	185,680	Nissan Auto Lease Trust, Ser 2012-A,
		Class A3, 0.980%, 5/15/15		185,830
	1,075,020	RAMP Trust, Ser 2003-RZ3, Class A6,
		3.900%, 3/25/33(B)		1,071,268
	21,189	Santander Drive Auto Receivables
		Trust, Ser 2010-1, Class A3,
		1.840%, 11/17/14		21,202
	3,142,437	Santander Drive Auto Receivables
		Trust, Ser 2010-2, Class C,
		3.890%, 7/17/17		3,180,087
	9,398,487	Santander Drive Auto Receivables
		Trust, Ser 2010-3, Class C,
		3.060%, 11/15/17		9,569,558
	1,651,458	Santander Drive Auto Receivables
		Trust, Ser 2010-B, Class C, 144a,
		3.020%, 10/17/16		1,659,682
	2,755,000	Santander Drive Auto Receivables
		Trust, Ser 2011-1, Class C,
		3.110%, 5/16/16		2,792,611
	118,377	Santander Drive Auto Receivables
		Trust, Ser 2011-2, Class B,
		2.660%, 1/15/16		118,763

39

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Asset-Backed Securities—26.1% (Continued)
$	2,530,000	Santander Drive Auto Receivables
		Trust, Ser 2011-3, Class C,
		3.090%, 5/15/17	$	2,572,939
	534,990	Santander Drive Auto Receivables
		Trust, Ser 2011-S1A, Class B, 144a,
		1.480%, 5/15/17		535,071
	124,370	Santander Drive Auto Receivables
		Trust, Ser 2012-1, Class A3,
		1.490%, 10/15/15		124,421
	283,757	Santander Drive Auto Receivables
		Trust, Ser 2012-2, Class A3,
		1.220%, 12/15/15		283,973
	390,000	Santander Drive Auto Receivables
		Trust, Ser 2012-2, Class B,
		2.090%, 8/15/16		392,646
	397,668	Santander Drive Auto Receivables
		Trust, Ser 2012-3, Class A3,
		1.080%, 4/15/16		398,166
	1,081,812	Sierra Timeshare Receivables Funding
		LLC, Ser 2011-1A, Class A, 144a,
		3.350%, 4/20/26		1,113,189
	3,502,059	Sierra Timeshare Receivables Funding
		LLC, Ser 2011-2A, Class A, 144a,
		3.260%, 5/20/28		3,590,724
	1,987,968	Sierra Timeshare Receivables Funding
		LLC, Ser 2012-1A, Class A, 144a,
		2.840%, 11/20/28		2,032,194
	371,504	Sierra Timeshare Receivables Funding
		LLC, Ser 2012-3A, Class A, 144a,
		1.870%, 8/20/29		374,544
	3,487,836	Sierra Timeshare Receivables Funding
		LLC, Ser 2013-1A, Class A, 144a,
		1.590%, 11/20/29		3,501,236
	27,507	SNAAC Auto Receivables Trust, Ser
		2012-1A, Class A, 144a,
		1.780%, 6/15/16		27,517
	2,150,000	SNAAC Auto Receivables Trust, Ser
		2012-1A, Class B, 144a,
		3.110%, 6/15/17		2,161,212
	49,584	United Auto Credit Securitization
		Trust, Ser 2012-1, Class A2, 144a,
		1.100%, 3/16/15		49,593
	10,605,000	United Auto Credit Securitization
		Trust, Ser 2012-1, Class C, 144a,
		2.520%, 3/15/16		10,686,033
	3,637,325	United Auto Credit Securitization
		Trust, Ser 2013-1, Class A2, 144a,
		0.950%, 9/15/15		3,639,995
	1,184,759	Volkswagen Auto Lease Trust, Ser
		2012-A, Class A3, 0.870%, 7/20/15		1,187,038
	640,818	Volkswagen Auto Loan Enhanced
		Trust, Ser 2012-1, Class A3,
		0.850%, 8/22/16		642,659
	350,000	Volvo Financial Equipment LLC, Ser
		2012-1A, Class A4, 144a,
		1.090%, 8/15/17		351,578
	4,625,868	Welk Resorts LLC, Ser 2013-AA, Class
		A, 144a, 3.100%, 3/15/29		4,670,605
	3,336,091	Westgate Resorts LLC, Ser 2012-2A,
		Class A, 144a, 3.000%, 1/20/25		3,354,873
	2,779,067	Westgate Resorts LLC, Ser 2012-3A,
		Class A, 144a, 2.500%, 3/20/25		2,786,014
	6,522,121	Westgate Resorts LLC, Ser 2013-1A,
		Class A, 144a, 2.250%, 8/20/25		6,524,143
	3,087,585	Westlake Automobile Receivables
		Trust, Ser 2012-1A, Class A2, 144a,
		1.030%, 3/15/16		3,090,367
	6,750,000	Westlake Automobile Receivables
		Trust, Ser 2013-1A, Class A2, 144a,
		1.120%, 1/15/18		6,775,610
		Total Asset-Backed Securities	$	183,385,099
		Commercial Mortgage-Backed Securities — 16.0%
	1,369,632	Banc of America Commercial
		Mortgage Trust, Ser 2007-1, Class
		A3, 5.449%, 1/15/49		1,368,378
	1,623,261	Banc of America Commercial
		Mortgage Trust, Ser 2007-2, Class
		A2, 5.611%, 4/10/49(A)		1,642,451
	3,133,000	Banc of America Merrill Lynch
		Commercial Mortgage Securities
		Trust, Ser 2012-CLRN, Class B, 144a,
		1.755%, 8/15/29(A)		3,134,974
	2,367,000	Banc of America Merrill Lynch
		Commercial Mortgage Securities
		Trust, Ser 2012-CLRN, Class C, 144a,
		2.255%, 8/15/29(A)		2,370,430
	7,099,957	Banc of America Merrill Lynch
		Commercial Mortgage, Inc., Ser
		2004-2, Class F, 144a,
		4.992%, 11/10/38(A)		7,409,075
	228,427	Banc of America Merrill Lynch
		Commercial Mortgage, Inc., Ser
		2004-4, Class A6, 4.877%, 7/10/42(A)		229,353
	154,532	Banc of America Merrill Lynch
		Commercial Mortgage, Inc., Ser
		2005-1, Class A4,
		5.171%, 11/10/42(A)		156,202
	74,570	Banc of America Merrill Lynch
		Commercial Mortgage, Inc., Ser
		2005-3, Class ASB, 4.589%, 7/10/43		74,908
	795,614	Banc of America Merrill Lynch
		Commercial Mortgage, Inc., Ser
		2005-4, Class ASB, 4.867%, 7/10/45		803,129
	40,000	Banc of America Merrill Lynch
		Commercial Mortgage, Inc., Ser
		2006-4, Class A4, 5.634%, 7/10/46		43,273
	100,033	Bear Stearns Commercial Mortgage
		Securities, Ser 2000-WF2, Class E,
		8.050%, 10/15/32(A)††		99,981

40

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Commercial Mortgage-Backed Securities — 16.0%
		(Continued)
$	5,035,662	Bear Stearns Commercial Mortgage
		Securities, Ser 2005-PWR8, Class A4,
		4.674%, 6/11/41††	$	5,209,957
	1,493,545	Bear Stearns Commercial Mortgage
		Securities Trust, Ser 2007-T28, Class
		AAB, 5.746%, 9/11/42††		1,538,864
	122,987	Citigroup/Deutsche Bank Commercial
		Mortgage Trust, Ser 2006-CD3,
		Class A4, 5.658%, 10/15/48		124,023
	3,650,000	COMM 2004-LNB3 Mortgage Trust,
		Ser 2004-LB3A, Class B,
		5.468%, 7/10/37(A)		3,674,397
	1,402,063	COMM 2006-FL12 Mortgage Trust, Ser
		2006-FL12, Class AJ, 144a,
		0.285%, 12/15/20(A)		1,395,588
	2,596,483	COMM 2007-FL14 Mortgage Trust, Ser
		2007-FL14, Class AJ, 144a,
		0.335%, 6/15/22(A)		2,573,893
	3,811,047	Commercial Mortgage Pass Through
		Certificates, Ser 2012-FL2, Class A,
		144a, 2.282%, 9/17/29(A)		3,852,941
	1,537,913	Commercial Mortgage Trust, Ser
		2004-GG1, Class C,
		5.466%, 6/10/36(A)		1,537,964
	4,100,000	Commercial Mortgage Trust, Ser
		2005-GG3, Class A4,
		4.799%, 8/10/42(A)		4,168,577
	9,821	Commercial Mortgage Trust, Ser
		2007-C2, Class A2,
		5.448%, 1/15/49(A)		9,756
	5,450,000	Credit Suisse First Boston Mortgage
		Securities Corp., Ser 2005-C2, Class
		A4, 4.832%, 4/15/37		5,612,960
	1,242,870	DBRR Trust, Ser 2012-EZ1, Class A,
		144a, 0.946%, 9/25/45		1,244,635
	1,920,258	DBUBS Mortgage Trust, Ser
		2011-LC2A, Class A1FL, 144a,
		1.505%, 7/12/44(A)		1,946,042
	355,669	DBUBS Mortgage Trust, Ser
		2011-LC3A, Class A1,
		2.238%, 8/10/44		360,180
	80,936	FDIC Structured Sale Guaranteed
		Notes, Ser 2010-C1, Class A, 144a,
		2.980%, 12/6/20		84,112
	4,898,496	First Union Commercial Mortgage
		Trust, Ser 1999-C1, Class F, 144a,
		5.350%, 10/15/35		5,024,544
	3,140,000	GE Capital Commercial Mortgage
		Corp., Ser 2005-C2, Class C,
		5.133%, 5/10/43(A)		3,245,476
	91,151	GMAC Commercial Mortgage
		Securities, Inc., Ser 2004-C3, Class
		A4, 4.547%, 12/10/41		91,369
	6,622,345	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2005-CB11, Class A4,
		5.335%, 8/12/37(A)		6,825,466
	1,800,000	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2005-CB11, Class AJ,
		5.390%, 8/12/37(A)		1,874,765
	832,436	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2005-CB12, Class A3A2,
		4.928%, 9/12/37		832,421
	5,584,545	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2005-LDP1, Class A4,
		5.038%, 3/15/46(A)		5,701,524
	135,889	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2005-LDP2, Class A3A,
		4.678%, 7/15/42		137,459
	2,184,461	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2007-CB19, Class A3,
		5.698%, 2/12/49(A)		2,192,583
	580,227	JP Morgan Chase Commercial
		Mortgage Securities Trust, Ser
		2011-C3, Class A1, 144a,
		1.875%, 2/15/46		581,330
	94,044	LB-UBS Commercial Mortgage Trust,
		Ser 2005-C7, Class AAB,
		5.170%, 11/15/30††		94,511
	4,436,079	Merrill Lynch Floating Trust, Ser
		2008-LAQA, Class A1, 144a,
		0.690%, 7/9/21(A)		4,430,929
	4,500,000	Merrill Lynch Floating Trust, Ser
		2008-LAQA, Class A2, 144a,
		0.690%, 7/9/21(A)		4,477,752
	189,249	Merrill Lynch Mortgage Investors
		Trust, Ser 1998-C1, Class A3,
		6.720%, 11/15/26(A)		199,882
	630,684	Merrill Lynch Mortgage Trust, Ser
		2003-KEY1, Class C,
		5.373%, 11/12/35(A)		629,900
	1,210,829	Merrill Lynch Mortgage Trust, Ser
		2005-CIP1, Class ASB,
		5.022%, 7/12/38(A)		1,230,278
	9,555,000	Merrill Lynch Mortgage Trust, Ser
		2005-MCP1, Class A4,
		4.747%, 6/12/43(A)		9,766,691
	155,445	Morgan Stanley Capital I Trust, Ser
		2004-IQ7, Class A4,
		5.427%, 6/15/38(A)		155,382
	3,800,000	Morgan Stanley Capital I Trust, Ser
		2004-IQ8, Class C,
		5.300%, 6/15/40(A)		3,852,182

41

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Commercial Mortgage-Backed Securities — 16.0%
		(Continued)
$	3,059,018	Morgan Stanley Capital I Trust, Ser
		2007-HQ12, Class A2,
		5.577%, 4/12/49(A)	$	3,127,054
	426,329	TIAA CMBS I Trust, Ser 2001-C1A, Class
		H, 144a, 5.770%, 6/19/33		426,630
	418,261	Wachovia Bank Commercial Mortgage
		Trust, Ser 2005-C20, Class A7,
		5.118%, 7/15/42(A)		436,969
	1,631,879	Wachovia Bank Commercial Mortgage
		Trust, Ser 2007-C30, Class A3,
		5.246%, 12/15/43		1,634,392
	5,000,000	Wells Fargo Commercial Mortgage
		Trust, Ser 2014-TISH, Class B, 144a,
		1.504%, 2/15/27(A)		5,000,000
		Total Commercial
		Mortgage-Backed Securities	$	112,635,532
		U.S. Government Mortgage-Backed
		Obligations — 9.4%
	409,505	FHLMC, Pool #1B1580,
		2.541%, 3/1/34(A)		432,423
	238,581	FHLMC, Pool #1B2629,
		2.375%, 11/1/34(A)		253,850
	839,588	FHLMC, Pool #1B7189,
		3.136%, 3/1/36(A)		893,554
	266,043	FHLMC, Pool #1G1471,
		2.279%, 1/1/37(A)		282,367
	1,177,889	FHLMC, Pool #1H1354,
		2.375%, 11/1/36(A)		1,257,950
	174,137	FHLMC, Pool #1H2524,
		2.375%, 8/1/35(A)		186,310
	669,995	FHLMC, Pool #1J1813,
		2.629%, 8/1/37(A)		720,000
	626,683	FHLMC, Pool #1K1238,
		2.375%, 7/1/36(A)		665,153
	357,403	FHLMC, Pool #1L0087,
		2.375%, 6/1/35(A)		382,053
	602,210	FHLMC, Pool #1L0147,
		2.415%, 7/1/35(A)		639,043
	445,068	FHLMC, Pool #1L1288,
		2.375%, 5/1/36(A)		474,818
	425,965	FHLMC, Pool #1Q0080,
		2.347%, 1/1/36(A)		455,525
	827,742	FHLMC, Pool #1Q0119,
		2.555%, 9/1/36(A)		886,530
	1,602,452	FHLMC, Pool #1Q0187,
		2.416%, 12/1/36(A)		1,704,880
	872,329	FHLMC, Pool #1Q0339,
		2.556%, 4/1/37(A)		932,575
	305,293	FHLMC, Pool #1Q0669,
		2.405%, 11/1/37(A)		323,656
	1,095,104	FHLMC, Pool #1Q1303,
		2.375%, 11/1/36(A)		1,188,143
	1,355,342	FHLMC, Pool #781515,
		2.375%, 4/1/34(A)		1,430,367
	477,879	FHLMC, Pool #782760,
		2.375%, 11/1/36(A)		511,025
	447,587	FHLMC, Pool #847795,
		2.406%, 4/1/35(A)		479,325
	303,538	FHLMC, Pool #848088,
		2.369%, 4/1/35(A)		325,538
	1,144,943	FHLMC, Pool #848539,
		4.619%, 4/1/37(A)		1,227,644
	2,419,184	FHLMC, Pool #848583,
		2.419%, 1/1/36(A)		2,573,886
	34,657	FHLMC, Pool #A92646, 5.500%, 6/1/40		38,650
	35,572	FHLMC, Pool #C03505, 5.500%, 6/1/40		39,152
	76,896	FHLMC, Pool #C66916, 7.000%, 5/1/32		86,788
	26,269	FHLMC, Pool #D94598, 6.500%, 4/1/21		29,421
	126,404	FHLMC, Pool #G01840, 5.000%, 7/1/35		137,810
	19,503	FHLMC, Pool #G11072,
		7.500%, 12/1/15		20,082
	2,032,623	FHLMC, Pool #G11769,
		5.000%, 10/1/20		2,161,430
	1,292,186	FHLMC, Pool #G11773,
		5.000%, 10/1/20		1,373,738
	33,001	FHLMC, Pool #G30085,
		7.500%, 10/1/17		34,987
	636,679	FHLMC, Pool #J10895,
		4.000%, 10/1/19		672,805
	387,681	FNMA, Pool #254868, 5.000%, 9/1/33		424,958
	187,061	FNMA, Pool #256272, 5.500%, 6/1/26		207,941
	310,289	FNMA, Pool #256852, 6.000%, 8/1/27		347,140
	59,126	FNMA, Pool #323832, 7.500%, 7/1/29		69,028
	4,246	FNMA, Pool #334593, 7.000%, 5/1/24		4,861
	2,458	FNMA, Pool #519992, 7.000%, 10/1/14		2,468
	2,461	FNMA, Pool #534851, 7.500%, 4/1/15		2,477
	4,319	FNMA, Pool #535219, 7.500%, 3/1/15		4,381
	361,240	FNMA, Pool #555380,
		2.254%, 4/1/33(A)		379,183
	30,726	FNMA, Pool #555646, 7.500%, 9/1/16		31,081
	130,638	FNMA, Pool #665773, 7.500%, 6/1/31		145,896
	388,440	FNMA, Pool #679742,
		2.726%, 1/1/40(A)		415,142
	115,876	FNMA, Pool #681842,
		2.250%, 2/1/33(A)		124,304
	393,452	FNMA, Pool #681898,
		2.250%, 4/1/33(A)		420,578
	362,684	FNMA, Pool #725245,
		2.280%, 2/1/34(A)		385,153
	429,793	FNMA, Pool #725424, 5.500%, 4/1/34		477,691
	2,187,312	FNMA, Pool #725490,
		2.418%, 4/1/34(A)		2,321,717
	833,207	FNMA, Pool #735439, 6.000%, 9/1/19		888,076
	234,797	FNMA, Pool #735539,
		2.341%, 4/1/35(A)		249,408
	150,042	FNMA, Pool #743207,
		2.174%, 10/1/33(A)		158,602

42

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		U.S. Government Mortgage-Backed
		Obligations — 9.4% (Continued)
$	126,640	FNMA, Pool #745467,
		2.523%, 4/1/36(A)	$	134,566
	229,821	FNMA, Pool #745790,
		2.199%, 8/1/36(A)		244,846
	1,487,173	FNMA, Pool #761411, 4.500%, 5/1/19		1,576,090
	241,221	FNMA, Pool #784365,
		1.925%, 5/1/34(A)		253,528
	372,156	FNMA, Pool #791978,
		1.892%, 9/1/34(A)		388,787
	188,528	FNMA, Pool #804001,
		2.310%, 10/1/34(A)		200,042
	380,531	FNMA, Pool #806765,
		1.934%, 11/1/34(A)		398,932
	133,737	FNMA, Pool #809897,
		2.253%, 3/1/35(A)		143,106
	740,212	FNMA, Pool #810896,
		1.899%, 1/1/35(A)		777,733
	373,609	FNMA, Pool #813170,
		2.237%, 1/1/35(A)		398,202
	594,006	FNMA, Pool #813714,
		2.082%, 1/1/35(A)		629,436
	3,064,291	FNMA, Pool #813844,
		1.915%, 1/1/35(A)		3,230,382
	437,644	FNMA, Pool #820364,
		1.853%, 4/1/35(A)		464,559
	2,023,806	FNMA, Pool #825395,
		2.347%, 7/1/35(A)		2,157,511
	1,317,403	FNMA, Pool #827787,
		1.925%, 5/1/35(A)		1,408,208
	167,131	FNMA, Pool #828480,
		2.478%, 6/1/35(A)		179,484
	480,088	FNMA, Pool #839239,
		2.385%, 9/1/35(A)		507,222
	228,248	FNMA, Pool #888179,
		2.458%, 2/1/37(A)		242,182
	129,484	FNMA, Pool #888548,
		2.352%, 5/1/35(A)		138,197
	281,921	FNMA, Pool #889060, 6.000%, 1/1/38		314,862
	269,358	FNMA, Pool #889061, 6.000%, 1/1/38		303,822
	16,995	FNMA, Pool #889382, 5.500%, 4/1/38		18,993
	827,695	FNMA, Pool #922674,
		2.559%, 4/1/36(A)		878,468
	994,045	FNMA, Pool #931676, 5.500%, 1/1/19		1,064,738
	254,881	FNMA, Pool #950385,
		1.327%, 8/1/37(A)		275,904
	195,785	FNMA, Pool #960376, 5.500%, 12/1/37		215,923
	268,103	FNMA, Pool #995284, 5.500%, 3/1/20		285,393
	1,634,417	FNMA, Pool #AA1150, 4.000%, 4/1/23		1,727,514
	361,353	FNMA, Pool #AB1827, 3.500%, 11/1/20		380,434
	787,540	FNMA, Pool #AB1981, 3.500%, 12/1/20		831,093
	19,701	FNMA, Pool #AD0941, 5.500%, 4/1/40		22,243
	189,548	FNMA, Pool #AE0363, 5.000%, 7/1/37		207,023
	1,255,589	FNMA, Pool #AE0727, 4.000%, 10/1/20		1,326,897
	303,647	FNMA, Pool #AE5441, 5.000%, 10/1/40		331,992
	629,483	FNMA, Pool #AI3780, 3.500%, 8/1/20		662,685
	416,932	FNMA, Pool #AI6588, 4.000%, 7/1/26		441,951
	390,735	FNMA, Pool #AI8506, 4.000%, 8/1/26		414,112
	390,223	FNMA, Pool #AL0211, 5.000%, 4/1/41		426,820
	89,999	FNMA, Pool #AL0302, 5.000%, 4/1/24		96,964
	2,082,966	FNMA, Pool #AL0478,
		2.471%, 4/1/36(A)		2,206,752
	718,067	FNMA, Pool #AL0543, 5.000%, 7/1/41		786,432
	402,599	FNMA, Pool #AL1105, 4.500%, 12/1/40		429,942
	280,251	FNMA, Pool #AL2591, 5.500%, 5/1/38		300,262
	835,147	FNMA, Pool #MA0174, 4.000%, 9/1/19		883,967
	498,500	FNMA, Pool #MA0464, 3.500%, 6/1/20		524,753
	595,319	FNMA, Pool #MA0629, 3.500%, 1/1/21		626,744
	522,244	FNMA, Pool #MA0641, 4.000%, 2/1/31		551,234
	503,235	FNMA, Pool #MA0667, 4.000%, 3/1/31		531,266
	2,618,612	FNMA, Pool #MA0740, 3.500%, 5/1/21		2,762,043
	128	GNMA, Pool #2802, 5.500%, 7/20/14		136
	1,061	GNMA, Pool #2843, 5.500%, 11/20/14		1,124
	29,825	GNMA, Pool #344233, 8.000%, 2/15/23		33,186
	81,070	GNMA, Pool #345123,
		8.000%, 12/15/23		90,713
	9,872	GNMA, Pool #569337, 6.500%, 4/15/22		11,127
	30,874	GNMA, Pool #578189, 6.000%, 2/15/32		34,588
	31,484	GNMA, Pool #780322,
		8.000%, 11/15/22		36,365
	6,896	GNMA, Pool #780327,
		8.000%, 11/15/17		7,451
	860,366	GNMA, Pool #80826,
		1.625%, 2/20/34(A)		899,389
	516,427	GNMA, Pool #80889,
		1.625%, 4/20/34(A)		537,204
	772,809	GNMA, Pool #81016,
		1.625%, 8/20/34(A)		803,064
	17,057	GNMA, Pool #814, 8.000%, 8/20/17		18,043
	5,818	GNMA, Pool #8426,
		3.000%, 11/20/18(A)		6,082
	142,451	GNMA, Pool #894160,
		2.023%, 6/20/61(A)		150,007
		Total U.S. Government
		Mortgage-Backed Obligations	$	65,814,281
		Municipal Bonds — 4.6%
		California— 0.1%
	625,000	Orange County California Pension
		Oblg, Txbl Ser A, 0.760%, 6/30/14		625,388
	180,000	Southern California Public Power
		Authority, Rev, 3.326%, 7/1/14		181,141
				806,529
		Connecticut— 0.1%
	425,000	State of Connecticut, Ser A, UTGO,
		0.980%, 5/15/18(A)		432,778
		Florida— 0.2%
	1,700,000	Citizens Property Insurance Corp., Pers
		&Coml Lines, 1.310%, 6/1/15(A)		1,713,447

43

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Municipal Bonds — 4.6% (Continued)
		Indiana— 0.3%
$	2,330,000	IN St Bond Bank Rev, Sch Severance
		Funding, 0.489%, 1/15/15	$	2,330,350
		Louisiana— 0.1%
	390,826	LA St Local Govt Envrnm Facs &
		Cmnty Dev Auth, Tranches A-1, A-2,
		1.520%, 2/1/18		393,722
		Massachusetts—0.2%
	1,000,000	MA St Dev Fin Agy R, Waste
		Management Inc Proj Ser B, 2.125%,
		12/1/29(A)		1,021,980
		New Jersey— 0.6%
	2,100,000	NJ St Econ Dev Auth Rev, Sch Facs
		Constr, Ser E, 1.760%, 2/1/16(A)		2,135,532
	2,000,000	NJ St Econ Dev Auth Rev, Sch Facs
		Constr, Ser OO, 0.857%, 3/1/15		2,005,120
				4,140,652
		New Mexico— 0.0%
	290,000	NM St Edl Assistan, Libor Fltg Ser A 2,
		0.886%, 12/1/28(A)		290,284
		New York— 0.6%
	4,350,000	Brookhaven NY Indl Dev Agy, Variable
		Intercounty Asso, (LOC: Capital One
		NA), 0.400%, 1/1/25(A)		4,350,000
		Ohio— 0.6%
	885,000	Akron OH COP, Muni Baseball
		Stadium, 1.300%, 12/1/15		886,159
	1,540,000	Akron OH COP, Muni Baseball
		Stadium, 1.750%, 12/1/16		1,537,197
	500,000	American Muni Pwr-Ohio, Inc. OH,
		Hydroelec Projs Ser A, 3.944%,
		2/15/15		513,635
	1,240,000	Medina Co OH IDR, Mack Inds Proj,
		(LOC: JP Morgan Chase Bank NA),
		0.230%, 7/1/16(A)		1,240,000
				4,176,991
		Pennsylvania— 0.4%
	2,500,000	PA St Econ Dev Fing, Waste Mgmt Proj,
		1.750%, 12/1/33(A)		2,552,050
		Tennessee— 0.1%
	1,000,000	Jackson TN Energy Auth Telecom, Txbl
		Ref, 0.600%, 4/1/14		1,000,000
		Texas— 1.3%
	5,500,000	Mission TX Econ Dev Corp., Waste
		Mgmt Inc Proj, 1.500%, 8/1/20(A)		5,518,535
	625,000	TX St, AMT College Student Ln B,
		UTGO, 5.000%, 8/1/14		634,862
	1,000,000	TX St Muni Gas Acquisition, 5.000%,
		12/15/14		1,025,110
	1,500,000	TX St Muni Gas Acquisition, 5.000%,
		12/15/15		1,585,680
				8,764,187
		Total Municipal Bonds	$	31,972,970
		Agency Collateralized Mortgage
		Obligations — 2.4%
	106,865	FHLMC REMIC, Ser 2510 Class TA,
		4.000%, 6/15/32		112,037
	858,634	FHLMC REMIC, Ser 2770 Class FH,
		0.555%, 3/15/34(A)		860,090
	315,369	FHLMC REMIC, Ser 2778 Class BR,
		5.000%, 6/15/33		320,268
	3,242	FHLMC REMIC, Ser 2904 Class CA,
		5.000%, 4/15/19		3,241
	488,262	FHLMC REMIC, Ser 3414 Class MB,
		4.250%, 12/15/19		513,506
	89,485,767	FHLMC REMIC, Ser K003 Class AX1,
		0.470%, 5/25/19(A)		1,949,447
	59,991,526	FHLMC REMIC, Ser K502 Class X1A,
		1.738%, 4/25/17(A)		2,389,103
	79,208	FNMA, 5.000%, 5/1/35		86,469
	1,526,914	FNMA REMIC, Ser 2003-106, Class WE,
		4.500%, 11/25/22		1,554,206
	547,404	FNMA REMIC, Ser 2003-119, Class PU,
		4.000%, 11/25/33		566,273
	56,075	FNMA REMIC, Ser 2003-19, Class ME,
		4.000%, 1/25/33		57,296
	171,132	FNMA REMIC, Ser 2003-33, Class AM,
		4.250%, 5/25/33		183,339
	161,828	FNMA REMIC, Ser 2003-42, Class CA,
		4.000%, 5/25/33		168,840
	23,583	FNMA REMIC, Ser 2003-66, Class AP,
		3.500%, 11/25/32		24,140
	751,795	FNMA REMIC, Ser 2003-81, Class FE,
		0.654%, 9/25/33(A)		756,269
	508,003	FNMA REMIC, Ser 2008-35, Class IO,
		4.500%, 4/25/23(C)		28,740
	814,141	FNMA REMIC, Ser 2009-80, Class EJ,
		4.500%, 3/25/27		827,564
	434,895	FNMA REMIC, Ser 2010-13, Class WD,
		4.250%, 3/25/25		459,996
	285,488	FNMA REMIC, Ser 2010-54, Class NA,
		4.500%, 10/25/39		294,490
	481,931	FNMA REMIC, Ser 2011-52, Class AH,
		2.750%, 10/25/18		495,069
	732,496	FNMA REMIC, Ser 2012-102, Class NA,
		1.500%, 9/25/27		710,598
	142,031	FNMA REMIC Trust, Ser 2001-W4, Class
		AF5, 6.114%, 2/25/32(B)		158,804
	261,679	GNMA, Ser 2002-72, Class AB,
		4.500%, 10/20/32		282,066
	370,254	GNMA, Ser 2011-161, Class A,
		1.738%, 1/16/34		371,487
	277,536	GNMA, Ser 2011-57, Class BA,
		3.000%, 5/20/40		286,227

44

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

Principal			Market
Amount			Value
		Agency Collateralized Mortgage
		Obligations — 2.4% (Continued)
$	610,122	GNMA, Ser 2011-78, Class AB,
		2.450%, 2/16/39	$	618,488
	14,213,304	GNMA, Ser 2011-78, Class IX,
		1.193%, 8/16/46(A)(C)		862,222
	329,295	GNMA, Ser 2012-27, Class A,
		1.614%, 7/16/39		325,086
	33,692,345	GNMA, Ser 2013-121, Class KX,
		1.644%, 10/16/44(A)		1,595,434
		Total Agency Collateralized
		Mortgage Obligations	$	16,860,795
		Non-Agency Collateralized Mortgage
		Obligations — 1.6%
	733,273	Bear Stearns ARM Trust, Ser 2004-1,
		Class 13A3, 2.718%, 4/25/34(A)††		738,433
	430,319	Bear Stearns Asset Backed Securities
		Trust, Ser 2003-AC7, Class A2,
		5.750%, 1/25/34(B)††		448,892
	199,514	Community Program Loan Trust, Ser
		1987-A, Class A5, 4.500%, 4/1/29		201,310
	188,883	FDIC Structured Sale Guaranteed
		Notes, Ser 2010-S3, Class A, 144a,
		2.740%, 12/3/20		192,072
	336,959	JP Morgan Mortgage Trust, Ser
		2006-A4, Class 2A2,
		2.440%, 6/25/36(A)		303,796
	27,123	Merrill Lynch Mortgage Investors
		Trust, Ser 2003-A1, Class 2A,
		2.188%, 12/25/32(A)		28,017
	544,091	Merrill Lynch Mortgage Investors
		Trust, Ser 2004-1, Class 1A,
		2.132%, 12/25/34(A)		561,280
	296,154	RALI Trust, Ser 2003-QS10, Class A7,
		5.500%, 5/25/33		307,040
	1,362,470	RFMSI Trust, Ser 2007-SA1, Class 1A1,
		3.035%, 2/25/37(A)		1,155,093
	441,349	Sequoia Mortgage Trust, Ser 2013-1,
		Class 2A1, 1.855%, 2/25/43(A)		379,391
	438,336	Sequoia Mortgage Trust, Ser 2013-2,
		Class A1, 1.874%, 2/25/43(A)		379,956
	2,785,588	Springleaf Mortgage Loan Trust, Ser
		2012-2A, Class A, 144a,
		2.220%, 10/25/57(A)		2,823,884
	2,637,282	Springleaf Mortgage Loan Trust, Ser
		2012-3A, Class A, 144a,
		1.570%, 12/25/59(A)		2,635,826
	335,492	Wells Fargo Mortgage Backed
		Securities Trust, Ser 2003-G, Class
		A1, 2.490%, 6/25/33(A)		342,558
	964,101	Wells Fargo Mortgage Backed
		Securities Trust, Ser 2003-M, Class
		A1, 2.618%, 12/25/33(A)		962,932
		Total Non-Agency Collateralized
		Mortgage Obligations	$	11,460,480
		Commercial Paper — 6.6%
	9,000,000	Duke Energy Corp.		8,999,850
	10,000,000	Enbridge US,Inc.		9,999,058
	7,200,000	New York State Electric & Gas Corp.		7,199,924
	10,000,000	Nextera Energy Capital Holdings, Inc.		9,999,513
	10,000,000	Noble Corp.		9,997,620
		Total Commercial Paper	$	46,195,965
		U.S. Government Agency Obligations — 0.8%
	955,000	Government Trust Certificate,
		0.431%, 5/15/15#		943,284
	583,000	Government Trust Certificate,
		0.665%, 10/1/16#		562,974
	2,100,000	Overseas Private Investment Corp.,
		0.025%, 3/15/17(A)		2,100,000
	1,010,000	Overseas Private Investment Corp.,
		0.631%, 4/30/15#		1,019,363
	70,276	Small Business Administration
		Participation Certificates, Ser
		2002-20A, Class 1, 6.140%, 1/1/22		76,558
	101,003	Small Business Administration
		Participation Certificates, Ser
		2003-20E, Class 1, 4.640%, 5/1/23		108,404
	57,795	Small Business Administration Pools,
		507442, 3.625%, 5/25/16(A)		58,295
	290,239	Small Business Administration Pools,
		507682, 0.650%, 1/25/26(A)		289,729
	238,054	Small Business Administration Pools,
		508374, 0.750%, 4/25/28(A)		238,280
	35,635	United States Small Business Administration, Ser 2005-P10A, Class 1,
		4.638%, 2/10/15		36,504
		Total U.S. Government Agency
		Obligations	$	5,433,391
	Shares
		Investment Fund — 3.6%
	25,229,182	Touchstone Institutional Money
		Market Fund, 0.01%^∞Ω		25,229,182
		Total Investment Securities —99.7%
		(Cost $699,345,274)	$	699,339,535
		Other Assets in Excess of
		Liabilities — 0.3%		2,127,485
		Net Assets — 100.0%	$	701,467,020

^(A) Variable rate security - Rate reflected is the rate in effect as of March 31, 2014.

^(B) 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 at March 31, 2014.

45

Touchstone Ultra Short Duration Fixed Income Fund (Unaudited) (Continued)

^(C) Interest rate 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.

# Zero coupon bond - Rate shown reflects effective yield to maturity at time of purchase.

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

^†† The issuers and/or sponsors of certain mortgage-backed securities may no longer exist; however, the securities held by the Fund are separate legal entities organized as trusts and publicly traded. The Fund receives principal and interest payments directly from these trusts.

^∞ Open End Fund

^Ω Represents the 7-day SEC yield as of March 31, 2014.

Portfolio Abbreviations:

AMT - Alternative Minimum Tax

ARM - Adjustable Rate Mortgage

COP - Certificate of Participation

FDIC - Federal Deposit Insurance Corporation

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

GNMA - Government National Mortgage Association

IDR - Industrial Development Revenue

LLC - Limited Liability Company

LOC - Letter of Credit

LP - Limited Partnership

MLP - Master Limited Partnership

MTN - Medium Term Note

PLC - Public Limited Company

REMIC - Real Estate Mortgage Investment Conduit

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 March 31, 2014, these securities were valued at $217,239,484 or 31.0% 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.

Valuation inputs at Reporting Date: 

Description	Level 1		Level 2		Level 3		Total
Corporate
Bonds	$	—	$	200,351,840	$	—	$	200,351,840
Asset-Backed
Securities		—		183,385,099		—		183,385,099
Commercial
Mortgage-Backed
Securities		—		102,868,841		—		112,635,532
U.S.
Government
Mortgage-Backed
Obligations		—		65,814,281		—		65,814,281
Municipal
Bonds		—		31,972,970		—		31,972,970
Agency
Collateralized
Mortgage
Obligations		—		16,860,795		—		16,860,795
Non-Agency
Collateralized
Mortgage
Obligations		—		11,460,480		—		11,460,480
Commercial
Paper		—		46,195,965		—		46,195,965
U.S.
Government
Agency
Obligations		—		5,433,391		—		5,433,391
Investment
Fund		25,229,182		—		—		25,229,182
							$	699,339,535

See accompanying Notes to Financial Statements.

46

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Statements of Assets and Liabilities

March 31, 2014 (Unaudited)

				Touchstone			Touchstone			Touchstone
	Touchstone			Emerging			Global			International
	Arbitrage			Markets Equity			Real Estate			Fixed Income
	Fund			Fund			Fund			Fund
Assets
Investments, at cost	$	215,101,401		$	376,109,183		$	15,801,155		$	35,236,868
Affiliated securities, at market value	$	21,596,453		$	1,499,630		$	—		$	4,110,523
Non-affiliated securities, at market value		197,029,603			376,672,757			15,691,104			31,741,525
Investments, at market value (A)	$	218,626,056		$	378,172,387		$	15,691,104		$	35,852,048
Foreign Currency (B)		—			1,788,237			—			1,343,552
Cash collateral for securities sold short and written options		72,733,295			—			—			—
Unrealized appreciation on forward foreign currency contracts		4,623			—			—			330,060
Dividends and interest receivable		234,756			1,262,072			108,277			373,124
Receivable for capital shares sold		4,046,313			267,070			—			70,062
Receivable for investments sold		7,792,451			3,892,190			45,084			444,033
Receivable for securities lending income		—			—			596			—
Tax reclaim receivable		1,453			61,040			3,716			1,188
Other assets		214			49,014			10,363			15,908
Total Assets		303,439,161			385,492,010			15,859,140			38,429,975
Liabilities
Bank overdrafts		—			—			49,450			—
Written options at market value(C)		98,570			—			—			—
Securities sold short(D)		77,297,300			—			—			—
Dividends payable for securities sold short		65,238			—			—			—
Unrealized depreciation on forward foreign currency contracts		107,593			—			—			350,893
Payable for reports to shareholders		11,942			23,500			16,489			15,868
Payable for return of collateral for securities on loan		—			15,337,555			1,090,981			—
Payable for capital shares redeemed		201,001			1,640,157			61,266			61,604
Payable for investments purchased		13,398,077			1,573,016			43,983			1,120,414
Payable to Investment Advisor		177,633			303,772			997			12,241
Payable to other affiliates		44,550			47,181			429			429
Payable to Trustees		3,780			2,958			2,849			2,853
Payable for professional services		9,357			26,229			14,654			9,657
Payable to Transfer Agent		9,702			36,747			1,046			1,218
Other accrued expenses and liabilities		8,125			64,966			7,947			5,373
Total Liabilities		91,432,868			19,056,081			1,290,091			1,580,550
Net Assets	$	212,006,293		$	366,435,929		$	14,569,049		$	36,849,425
Net assets consist of:
Par value	$	211,831		$	329,684		$	13,716		$	34,982
Paid-in capital		211,655,986			414,686,677			15,168,134			36,465,547
Accumulated net investment income (loss)		(646,713	)		(168,295	)		(125,555	)		(145,253	)
Accumulated net realized gains (losses) on investments, foreign currency and securities sold short		935,431			(50,468,429	)		(377,532	)		(119,667	)
Net unrealized appreciation (depreciation) on investments, foreign currency transactions, written options and securities sold short		(150,242	)		2,056,292			(109,714	)		613,816
Net Assets	$	212,006,293		$	366,435,929		$	14,569,049		$	36,849,425
(A) Includes market value of securities on loan of:	$	—		$	15,104,148		$	1,056,154		$	—
(B) Cost of foreign currency:	$	—		$	1,787,875		$	—		$	1,324,903
(C) Proceeds from written options:	$	134,208		$	—		$	—		$	—
(D) Proceeds received for securities sold short:	$	73,689,735		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

48

Statements of Assets and Liabilities (Unaudited) (Continued)

Touchstone			Touchstone			Touchstone
Merger			Mid			Mid Cap
Arbitrage			Cap			Value
Fund			Fund			Fund
$	671,584,994		$	411,432,868		$	263,095,312
$	102,670,316		$	7,027,269		$	5,643,174
	581,741,923			460,077,346			294,250,272
$	684,412,239		$	467,104,615		$	299,893,446
	—			—			—
	213,705,981			—			—
	22,805			—			—
	823,237			211,161			462,186
	2,598,992			1,000,507			334,905
	15,198,085			—			3,033,087
	—			3,133			630
	12,183			—			172
	78,691			68,603			27,213
	916,852,213			468,388,019			303,751,639
	—			—			—
	427,997			—			—
	242,736,337			—			—
	268,854			—			—
	568,423			—			—
	35,880			14,226			20,904
	—			28,588,759			12,608,180
	3,856,409			697,597			4,876,056
	28,365,116			—			4,347,137
	596,990			293,126			198,551
	177,248			80,997			49
	3,030			2,944			2,888
	14,814			12,445			9,941
	91,226			44,557			41,034
	2,226			8,871			9,218
	277,144,550			29,743,522			22,113,958
$	639,707,663		$	438,644,497		$	281,637,681
$	597,509		$	190,293		$	170,615
	638,028,419			525,807,417			235,492,066
	(3,956,830	)		551,779			106,786
	6,150,341			(143,576,739	)		9,070,080
	(1,111,776	)		55,671,747			36,798,134
$	639,707,663		$	438,644,497		$	281,637,681
$	—		$	28,255,508		$	12,400,092
$	—		$	—		$	—
$	895,549		$	—		$	—
$	228,875,382		$	—		$	—

49

Statements of Assets and Liabilities (Unaudited) (Continued)

			Touchstone
			Emerging		Touchstone		Touchstone
	Touchstone		Markets		Global		International
	Arbitrage		Equity		Real Estate		Fixed Income
	Fund		Fund		Fund		Fund
Pricing of Class A Shares
Net assets applicable to Class A shares	$	60,319,512	$	6,389,143	$	637,300	$	892,960
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		6,033,097		571,781		61,293		85,012
Net asset value price per share*	$	10.00	$	11.17	$	10.40	$	10.50
Maximum offering price per share	$	10.61	$	11.85	$	11.03	$	11.02
Pricing of Class C Shares
Net assets applicable to Class C shares	$	7,786,781	$	2,933,620	$	405,722	$	240,032
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		780,790		267,150		38,884		23,055
Net asset value, offering price per share**	$	9.97	$	10.98	$	10.43	$	10.41
Pricing of Class Y Shares
Net assets applicable to Class Y shares	$	90,193,713	$	122,884,578	$	250,843	$	311,841
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		9,009,214		11,058,719		23,844		29,658
Net asset value, offering price and redemption price per share	$	10.01	$	11.11	$	10.52	$	10.51
Pricing of Class Z Shares
Net assets applicable to Class Z shares	$	—	$	—	$	—	$	—
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		—		—		—		—
Net asset value, offering price and redemption price per share	$	—	$	—	$	—	$	—
Pricing of Institutional Class Shares
Net assets applicable to Institutional Class Shares	$	53,706,287	$	234,228,588	$	13,275,184	$	35,404,592
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		5,359,980		21,070,789		1,247,553		3,360,484
Net asset value, offering price and redemption price per share	$	10.02	$	11.12	$	10.64	$	10.54

* 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.

See accompanying Notes to Financial Statements.

50

Statements of Assets and Liabilities (Unaudited) (Continued)

Touchstone		Touchstone		Touchstone
Merger		Mid		Mid Cap
Arbitrage		Cap		Value
Fund		Fund		Fund
$	227,666,996	$	60,743,880	$	20,027,989
	21,299,233		2,638,616		1,220,062
$	10.69	$	23.02	$	16.42
$	11.34	$	24.42	$	17.42
$	46,484,274	$	38,214,356	$	2,248,744
	4,426,623		1,705,215		138,131
$	10.50	$	22.41	$	16.28
$	200,100,116	$	237,487,692	$	128,957,902
	18,639,740		10,262,528		7,821,927
$	10.74	$	23.14	$	16.49
$	—	$	15,888,777	$	—
	—		694,525		—
$	—	$	22.88	$	—
$	165,456,277	$	86,309,792	$	130,403,046
	15,385,296		3,728,439		7,881,394
$	10.75	$	23.15	$	16.55

51

Statements of Assets and Liabilities (Unaudited) (Continued)

	Touchstone		Touchstone			Touchstone			Touchstone
	Premium		Sands Capital			Small			Small
	Yield Equity		Select Growth			Cap Core			Cap Value
	Fund		Fund			Fund			Fund
Assets
Investments, at cost	$	132,436,761	$	4,155,984,054		$	784,879,753		$	79,495,245
Affiliated securities, at market value	$	1,687,737	$	183,747,761		$	13,724,167		$	260,833
Non-affiliated securities, at market value		155,970,911		6,174,595,291			1,009,549,132			86,179,519
Investments, at market value (A)	$	157,658,648	$	6,358,343,052		$	1,023,273,299		$	86,440,352
Cash		—		—			—			—
Dividends and interest receivable		309,363		1,582,720			1,245,924			160,770
Receivable for capital shares sold		387,462		19,480,375			1,562,226			2,585,204
Receivable for investments sold		—		14,204,049			—			1,450,597
Receivable from securities lending income		—		10,266			100,429			1,430
Tax reclaim receivable		27,678		—			1,117			—
Other assets		29,688		261,190			57,055			42,518
Total Assets		158,412,839		6,393,881,652			1,026,240,050			90,680,871
Liabilities
Dividends payable		—		—			—			—
Payable for return of collateral for securities on loan		—		159,916,330			115,115,695			5,379,679
Payable for capital shares redeemed		621,777		12,894,252			2,631,481			412,859
Payable for investments purchased		—		3,842,332			—			547,482
Payable to Investment Advisor		89,941		4,948,166			655,295			83,022
Payable to other affiliates		50,080		3,988,200			168,478			12,783
Payable to Trustees		2,895		4,324			3,078			2,856
Payable for professional services		10,430		74,716			16,147			8,472
Payable to Transfer Agent		28,791		1,034,716			92,387			21,499
Payable for reports to shareholders		17,207		224,676			32,519			12,963
Other accrued expenses and liabilities		7,719		46,669			8,870			14,661
Total Liabilities		828,840		186,974,381			118,723,950			6,496,276
Net Assets	$	157,583,999	$	6,206,907,271		$	907,516,100		$	84,184,595
Net assets consist of:
Par value	$	167,751	$	3,499,404		$	430,697		$	33,387
Paid-in capital		128,795,030		3,977,671,064			648,235,949			96,801,974
Accumulated net investment income (loss)		405,994		(53,024,316	)		(3,439,999	)		16,688
Accumulated net realized gains (losses) on investments		2,993,337		76,402,121			23,895,907			(19,612,561	)
Net unrealized appreciation (depreciation) on investments		25,221,887		2,202,358,998			238,393,546			6,945,107
Net Assets	$	157,583,999	$	6,206,907,271		$	907,516,100		$	84,184,595
(A) Includes market value of securities on loan of:	$	—	$	158,652,865		$	114,067,841		$	5,204,279

See accompanying Notes to Financial Statements.

52

Statements of Assets and Liabilities (Unaudited) (Continued)

			Touchstone
Touchstone			Ultra Short
Total Return			Duration Fixed
Bond Fund			Income Fund
$	147,536,809		$	699,345,274
$	2,487,314		$	25,229,182
	144,864,281			674,110,353
$	147,351,595		$	699,339,535
	—			2,784,416
	1,276,871			3,664,690
	135,650			4,594,573
	1,002			934,341
	—			—
	—			—
	33,586			66,948
	148,798,704			711,384,503
	—			164,491
	—			—
	800,703			2,465,557
	—			6,504,874
	41,918			147,151
	11,063			482,219
	2,894			3,048
	11,597			19,404
	8,686			73,601
	16,998			27,931
	8,126			29,207
	901,985			9,917,483
$	147,896,719		$	701,467,020
$	145,765		$	743,377
	148,811,581			722,430,243
	(193	)		(1,810,736	)
	(875,220	)		(19,890,125	)
	(185,214	)		(5,739	)
$	147,896,719		$	701,467,020
$	—		$	—

53

Statements of Assets and Liabilities (Unaudited) (Continued)

	Touchstone		Touchstone		Touchstone		Touchstone
	Premium		Sands Capital		Small		Small
	Yield Equity		Select Growth		Cap Core		Cap Value
	Fund		Fund		Fund		Fund
Pricing of Class A Shares
Net assets applicable to Class A shares	$	64,442,364	$	460,786,895	$	135,470,909	$	40,509,417
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		6,854,620		26,271,398		6,456,000		1,606,896
Net asset value price per share*	$	9.40	$	17.54	$	20.98	$	25.21
Maximum offering price per share	$	9.97	$	18.61	$	22.26	$	26.75
Pricing of Class C Shares
Net assets applicable to Class C shares	$	25,680,252	$	214,906,926	$	29,909,557	$	2,237,828
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		2,733,377		12,570,435		1,453,670		89,593
Net asset value, offering price per share**	$	9.40	$	17.10	$	20.58	$	24.98
Pricing of Class Y Shares
Net assets applicable to Class Y shares	$	67,461,383	$	3,170,522,897	$	281,177,263	$	7,638,598
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		7,187,085		176,532,765		13,308,483		302,773
Net asset value, offering price and redemption price per share	$	9.39	$	17.96	$	21.13	$	25.23
Pricing of Class Z Shares
Net assets applicable to Class Z shares	$	—	$	2,360,690,553	$	—	$	—
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		—		134,565,785		—		—
Net asset value, offering price and redemption price per share	$	—	$	17.54	$	—	$	—
Pricing of Institutional Class Shares
Net assets applicable to Institutional Class Shares	$	—	$	—	$	460,958,371	$	33,798,752
Shares of beneficial interest outstanding
(unlimited number of shares authorized, $0.01 par value)		—		—		21,851,509		1,339,429
Net asset value, offering price and redemption price per share	$	—	$	—	$	21.10	$	25.23

* 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.

See accompanying Notes to Financial Statements.

54

Statements of Assets and Liabilities (Unaudited) (Continued)

		Touchstone
Touchstone		Ultra Short
Total Return		Duration Fixed
Fund		Income Fund
$	6,743,225	$	11,994,748
	665,244		1,271,306
$	10.14	$	9.43
$	10.65	$	9.62
$	1,839,822	$	11,787,304
	181,763		1,249,048
$	10.12	$	9.44
$	19,322,207	$	235,503,355
	1,903,319		24,958,024
$	10.15	$	9.44
$	—	$	385,400,061
	—		40,841,611
$	—	$	9.44
$	119,991,465	$	56,781,552
	11,826,202		6,017,707
$	10.15	$	9.44

55

Statements of Operations

For the Six Months Ended March 31, 2014 (Unaudited)

				Touchstone			Touchstone			Touchstone
	Touchstone			Emerging			Global			International
	Arbitrage			Markets Equity			Real Estate			Fixed Income
	Fund(B)			Fund			Fund			Fund
Investment Income
Dividends from affiliated securities	$	943		$	314		$	5		$	149
Dividends from non-affiliated securities(A)		785,233			2,712,039			408,097			—
Interest		62,395			—			—			380,014
Income from securities loaned		—			26,588			2,336			—
Total Investment Income		848,571			2,738,941			410,438			380,163
Expenses
Investment advisory fees		661,504			1,803,241			58,645			85,917
Administration fees		101,210			283,184			11,838			25,203
Compliance fees and expenses		828			831			831			831
Custody fees		5,727			130,106			9,962			4,725
Professional fees		13,674			31,975			14,805			11,522
Transfer Agent fees, Class A		10,371			18,336			647			843
Transfer Agent fees, Class C		1,593			3,376			302			127
Transfer Agent fees, Class Y		8,852			41,544			89			175
Transfer Agent fees, Class Z		—			—			—			—
Transfer Agent fees, Institutional Class		279			10,668			49			116
Registration Fees, Class A		3,210			7,483			1,556			3,677
Registration Fees, Class C		1,250			5,023			1,035			2,483
Registration Fees, Class Y		1,407			8,348			1,036			1,971
Registration Fees, Class Z		—			—			—			—
Registration Fees, Institutional Class		1,153			7,483			1,036			1,280
Dividend and interest expense on securities sold short		607,205			—			—			—
Reports to Shareholders, Class A		4,357			5,313			3,468			3,347
Reports to Shareholders, Class C		3,701			3,633			3,328			3,232
Reports to Shareholders, Class Y		3,843			8,129			3,264			3,239
Reports to Shareholders, Class Z		—			—			—			—
Reports to Shareholders, Institutional Class		3,822			4,582			4,042			3,291
Shareholder servicing fees, Class Z		—			—			—			—
Distribution expenses, Class A		40,123			9,851			785			1,170
Distribution expenses, Class C		11,949			16,487			1,983			1,176
Trustee fees		5,830			5,840			5,817			5,818
Other expenses		10,213			35,339			17,926			10,259
Total Expenses		1,502,101			2,440,772			142,444			170,402
Fees waived and/or reimbursed by the Advisor and/or Affiliates(C)		(6,817	)		(85,590	)		(66,147	)		(59,089	)
Fees eligible for recoupment by the Advisor(C)		—			—			—			—
Net Expenses		1,495,284			2,355,182			76,297			111,313
Net Investment Income (Loss)		(646,713	)		383,759			334,141			268,850
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) from non-affiliated securities		543,131			(12,529,591	)		(244,996	)		297,210
Net realized gains (losses) on foreign currency transactions		201,465			(361,710	)		(9,120	)		(400,015	)
Net realized gains on securities sold short		190,835			—			—			—
Net change in unrealized appreciation (depreciation) on investments(D)		3,524,655			6,334,896			804,377			486,652
Net change in unrealized appreciation (depreciation) on foreign currency transactions		(102,970	)		9,344			(1,120	)		347,108
Net change in unrealized appreciation (depreciation) on written options		35,638			—			—			—
Net change in unrealized appreciation (depreciation) on securities sold short		(3,607,565	)		—			—			—
Net Realized and Unrealized Gains (Losses) on Investments		785,189			(6,547,061	)		549,141			730,955
Change in Net Assets Resulting from Operations	$	138,476		$	(6,163,302	)	$	883,282		$	999,805
(A) Net of foreign tax withholding of:	$	4,333		$	224,080		$	16,152		$	2,291

^(B) Represents the period from commencement of operations (October 1, 2013) through March 31, 2014.

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

^(D) Change in unrealized appreciation does not include net unrealized appreciation of $8,366,217 for the Mid Cap Value Fund in connection with the Fund's merger. See Note 11 in the Notes to Financial Statements.

See accompanying Notes to Financial Statements.

56

Statements of Operations (Unaudited) (Continued)

Touchstone			Touchstone			Touchstone
Merger			Mid			Mid Cap
Arbitrage			Cap			Value
Fund			Fund			Fund
$	6,307		$	348		$	135
	3,948,901			2,907,931			1,473,867
	235,130			—			—
	—			11,202			1,602
	4,190,338			2,919,481			1,475,604
	3,540,797			1,575,761			679,538
	544,615			317,846			132,493
	831			831			831
	21,562			9,166			4,009
	23,710			14,403			11,233
	94,065			27,721			2,354
	18,598			15,558			421
	30,429			52,873			6,191
	—			7,779			—
	2,094			1,138			1,645
	13,689			5,972			3,890
	4,999			4,653			2,574
	12,382			5,793			5,242
	—			6,066			—
	2,465			2,268			3,840
	3,231,793			—			—
	15,397			4,023			3,541
	6,733			3,745			3,330
	13,250			5,345			5,388
	—			3,623			—
	5,219			3,287			5,099
	—			19,045			—
	313,434			69,301			6,677
	242,601			159,764			4,683
	5,865			5,844			5,829
	25,021			15,681			6,940
	8,169,549			2,337,486			895,748
	—			(214,806	)		(135,097	)
	20,195			—			—
	8,189,744			2,122,680			760,651
	(3,999,406	)		796,801			714,953
	6,709,895			3,149,267			10,677,836
	1,139,532			—			—
	286,195			—			—
	(2,706,846	)		33,266,544			6,627,369
	(489,944	)		—			—
	468,252			—			—
	50,608			—			—
	5,457,692			36,415,811			17,305,205
$	1,458,286		$	37,212,612		$	18,020,158
$	20,157		$	—		$	—

57

Statements of Operations (Unaudited) (Continued)

	Touchstone			Touchstone			Touchstone			Touchstone
	Premium Yield			Sands Capital			Small Cap			Small Cap
	Equity			Select Growth			Core			Value
	Fund			Fund			Fund			Fund
Investment Income
Dividends from affiliated securities	$	180		$	6,383		$	616		$	42
Dividends from non-affiliated securities(A)		5,862,559			8,703,666			685,804			622,493
Interest		—			—			—			—
Income from securities loaned		—			29,679			2,731,657			6,404
Total Investment Income		5,862,739			8,739,728			3,418,077			628,939
Expenses
Investment advisory fees		530,777			21,758,430			3,685,730			190,203
Administration fees		125,660			4,758,020			700,020			34,192
Compliance fees and expenses		831			831			831			831
Custody fees		3,635			36,393			8,248			8,500
Professional fees		11,622			105,939			22,510			10,479
Transfer Agent fees, Class A		36,142			185,213			92,819			21,734
Transfer Agent fees, Class C		8,841			85,748			11,587			458
Transfer Agent fees, Class Y		15,830			675,432			64,697			266
Transfer Agent fees, Class Z		—			1,171,220			—			—
Transfer Agent fees, Institutional Class		—			—			11,597			32
Registration Fees, Class A		10,121			16,611			9,630			6,318
Registration Fees, Class C		4,760			10,485			6,419			2,066
Registration Fees, Class Y		7,512			42,692			8,485			2,363
Registration Fees, Class Z		—			32,092			—			—
Registration Fees, Institutional Class		—			—			6,895			1,939
Reports to Shareholders, Class A		6,970			31,140			12,477			6,235
Reports to Shareholders, Class C		4,229			22,986			5,022			3,248
Reports to Shareholders, Class Y		5,659			120,850			10,368			3,232
Reports to Shareholders, Class Z		—			150,574			—			—
Reports to Shareholders, Institutional Class		—			—			4,856			3,243
Shareholder servicing fees, Class Z		—			2,825,348			—			—
Distribution expenses, Class A		77,429			564,867			164,359			44,040
Distribution expenses, Class C		123,878			1,066,699			149,819			4,330
Trustee fees		5,827			6,229			5,878			5,819
Other expenses		8,870			3,757,155			23,700			16,705
Total Expenses		988,593			37,424,954			5,005,947			366,233
Fees waived and/or reimbursed by the Advisor and/or Affiliates(B)		(48,216	)		(517,020	)		(276,106	)		(72,145	)
Fees eligible for recoupment by the Advisor(B)		—			324,347			—			—
Net Expenses		940,377			37,232,281			4,729,841			294,088
Net Investment Income (Loss)		4,922,362			(28,492,553	)		(1,311,764	)		334,851
Realized and Unrealized Gains (Losses) on Investments
Net realized gains (losses) on investments		4,877,533			161,510,796			25,149,868			2,868,077
Net change in unrealized appreciation (depreciation) on
investments(C)		3,491,971			397,598,111			67,685,431			1,300,924
Net Realized and Unrealized Gains (Losses) on Investments		8,369,504			559,108,907			92,835,299			4,169,001
Change in Net Assets Resulting from Operations	$	13,291,866		$	530,616,354		$	91,523,535		$	4,503,852
(A) Net of foreign tax withholding of:	$	61,435		$	38,680		$	19,359		$	1,216

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

^(C) Change in unrealized appreciation does not include net unrealized appreciation of $2,463,630 for the Small Cap Value Fund in connection with the Fund's merger. See Note 11 in the Notes to Financial Statements.

See accompanying Notes to Financial Statements.

58

Statements of Operations (Unaudited) (Continued)

			Touchstone
Touchstone			Ultra Short
Total Return			Duration
Bond			Fixed Income
Fund			Fund
$	91		$	1,256
	—			—
	2,996,080			5,188,750
	—			—
	2,996,171			5,190,006
	279,154			872,214
	128,832			563,415
	831			831
	7,229			15,782
	12,344			21,313
	6,818			8,026
	1,256			4,300
	3,760			47,029
	—			95,735
	2,800			285
	6,812			5,135
	4,004			4,969
	4,496			4,330
	—			14,384
	6,369			3,352
	3,954			4,253
	3,405			3,935
	3,724			7,713
	—			12,052
	3,471			3,471
	—			465,065
	11,890			23,264
	11,035			47,319
	5,828			5,865
	19,228			67,854
	527,240			2,301,891
	(84,831	)		(244,626	)
	—			600
	442,409			2,057,865
	2,553,762			3,132,141
	(668,108	)		507,006
	1,736,089			643,208
	1,067,981			1,150,214
$	3,621,743		$	4,282,355
$	—		$	—

59

Statements of Changes in Net Assets

	Touchstone			Touchstone
	Arbitrage			Emerging Markets
	Fund			Equity Fund
	For the			For the
	Period			Six Months
	Ended			Ended			For the
	March 31,			March 31,			Year Ended
	2014(A)			2014			September 30,
	(Unaudited)			(Unaudited)			2013
From Operations
Net investment income (loss)	$	(646,713	)	$	383,759		$	5,331,941
Net realized gains (losses) on investments, foreign currency and securities sold short		935,431			(12,891,301	)		(29,636,263	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency transactions, written options and securities sold short		(150,242	)		6,344,240			(5,045,535	)
Change in Net Assets from Operations		138,476			(6,163,302	)		(29,349,857	)
Distributions to Shareholders from:
Net investment income, Class A		—			(25,019	)		(13,779	)
Net investment income, Class C		—			—			—
Net investment income, Class Y		—			(1,423,044	)		(849,219	)
Net investment income, Institutional Class		—			(2,744,620	)		(1,292,834	)
Net realized gains, Class A		—			—			—
Net realized gains, Class C		—			—			—
Net realized gains, Class Y		—			—			—
Net realized gains, Institutional Class		—			—			—
Total Distributions		—			(4,192,683	)		(2,155,832	)
Net Increase (Decrease) from Share Transactions(B)		211,867,817			6,255,405			(128,132,786	)
Total Increase (Decrease) in Net Assets		212,006,293			(4,100,580	)		(159,638,475	)
Net Assets
Beginning of period		—			370,536,509			530,174,984
End of period	$	212,006,293		$	366,435,929		$	370,536,509
Accumulated Net Investment Income (Loss)	$	(646,713	)	$	(168,295	)	$	3,640,629

^(A) Represents the period from commencement of operations (October 1, 2013) through March 31, 2014.

^(B) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity in pages 66-69.

See accompanying Notes to Financial Statements.

60

Statements of Changes in Net Assets (Continued)

Touchstone						Touchstone						Touchstone
Global Real Estate						International Fixed Income						Merger Arbitrage
Fund						Fund						Fund
For the						For the						For the
Six Months						Six Months						Six Months
Ended			For the			Ended			For the			Ended			For the
March 31,			Year Ended			March 31,			Year Ended			March 31,			Year Ended
2014			September 30,			2014			September 30,			2014			September 30,
(Unaudited)			2013			(Unaudited)			2013			(Unaudited)			2013
$	334,141		$	600,809		$	268,850		$	401,245		$	(3,999,406	)	$	3,538,840
	(254,116	)		2,607,920			(102,805	)		(24,499	)		8,135,622			19,927,864
	803,257			(1,421,733	)		833,760			(733,700	)		(2,677,930	)		(1,220,807	)
	883,282			1,786,996			999,805			(356,954	)		1,458,286			22,245,897
	(25,071	)		(27,807	)		(6,819	)		(4,103	)		(1,133,607	)		—
	(14,532	)		(12,932	)		(1,293	)		(75	)		—			—
	(10,992	)		(10,544	)		(2,845	)		(1,374	)		(1,487,742	)		—
	(553,625	)		(1,019,621	)		(252,050	)		(90,058	)		(1,216,543	)		—
	(91,730	)		(4,182	)		(13,011	)		(7,395	)		(7,622,004	)		(1,776,952	)
	(56,232	)		(1,893	)		(3,242	)		(1,544	)		(1,468,984	)		(319,821	)
	(40,405	)		(1,243	)		(4,908	)		(1,910	)		(6,316,581	)		(952,569	)
	(1,918,096	)		(182,424	)		(361,675	)		(111,301	)		(4,856,576	)		(940,829	)
	(2,710,683	)		(1,260,646	)		(645,843	)		(217,760	)		(24,102,037	)		(3,990,171	)
	(641,935	)		(7,548,878	)		5,736,924			(846,807	)		(26,533,125	)		324,836,650
	(2,469,336	)		(7,022,528	)		6,090,886			(1,421,521	)		(49,176,876	)		343,092,376
	17,038,385			24,060,913			30,758,539			32,180,060			688,884,539			345,792,163
$	14,569,049		$	17,038,385		$	36,849,425		$	30,758,539		$	639,707,663		$	688,884,539
$	(125,555	)	$	144,524		$	(145,253	)	$	(151,096	)	$	(3,956,830	)	$	3,880,468

61

Statements of Changes in Net Assets (Continued)

	Touchstone						Touchstone
	Mid Cap						Mid Cap Value
	Fund						Fund
	For the						For the
	Six Months						Six Months
	Ended			For the			Ended			For the
	March 31,			Year Ended			March 31,			Year Ended
	2014			September 30,			2014			September 30,
	(Unaudited)			2013			(Unaudited)			2013
From Operations
Net investment income (loss)	$	796,801		$	1,247,243		$	714,953		$	1,363,525
Net realized gains on investments		3,149,267			7,906,186			10,677,836			13,412,475
Net change in unrealized appreciation (depreciation) on investments		33,266,544			15,462,245			6,627,369			15,731,819
Change in Net Assets from Operations		37,212,612			24,615,674			18,020,158			30,507,819
Distributions to Shareholders from:
Net investment income, Class A		(55,665	)		(48,159	)		(18,573	)		(31,331	)
Net investment income, Class C		—			(20,002	)		—			(175	)
Net investment income, Class Y		(499,864	)		(864,201	)		(140,051	)		(144,380	)
Net investment income, Class Z		(3,557	)		(65,114	)		—			—
Net investment income, Institutional Class		(188,068	)		(226,908	)		(500,823	)		(1,189,996	)
Net realized gains, Class A		—			—			(358,204	)		(41,174	)
Net realized gains, Class C		—			—			(70,196	)		(3,413	)
Net realized gains, Class Y		—			—			(1,353,854	)		(161,899	)
Net realized gains, Class Z		—			—			—			—
Net realized gains, Institutional Class		—			—			(12,333,363	)		(973,379	)
Total Distributions		(747,154	)		(1,224,384	)		(14,775,064	)		(2,545,747	)
Net Increase (Decrease) from Share Transactions(A)		65,246,026			251,756,812			111,620,585			46,083,223
Total Increase (Decrease) in Net Assets		101,711,484			275,148,102			114,865,679			74,045,295
Net Assets
Beginning of period		336,933,013			61,784,911			166,772,002			92,726,707
End of period	$	438,644,497		$	336,933,013		$	281,637,681		$	166,772,002
Accumulated Net Investment Income (Loss)	$	551,779		$	502,132		$	106,786		$	51,280

^(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 69-71.

See accompanying Notes to Financial Statements.

62

Statements of Changes in Net Assets (Continued)

						Touchstone
Touchstone						Sands Capital
Premium Yield						Select Growth
Equity Fund						Fund
For the						For the
Six Months						Six Months
Ended			For the			Ended			For the
March 31,			Year Ended			March 31,			Year Ended
2014			September 30,			2014			September 30,
(Unaudited)			2013			(Unaudited)			2013
$	4,922,362		$	4,157,850		$	(28,492,553	)	$	(22,780,284	)
	4,877,533			5,407,695			161,510,796			98,941,091
	3,491,971			8,349,888			397,598,111			1,053,951,091
	13,291,866			17,915,433			530,616,354			1,130,111,898
	(1,925,927	)		(2,147,371	)		—			—
	(668,643	)		(383,163	)		—			—
	(2,179,183	)		(1,479,717	)		—			—
	—			—			—			—
	—			—			—			—
	—			—			(3,338,561	)		—
	—			—			(1,618,598	)		—
	—			—			(20,484,118	)		—
	—			—			(16,954,589	)		—
	—			—			—			—
	(4,773,753	)		(4,010,251	)		(42,395,866	)		—
	(27,758,064	)		45,274,313			278,091,398			983,088,443
	(19,239,951	)		59,179,495			766,311,886			2,113,200,341
	176,823,950			117,644,455			5,440,595,385			3,327,395,044
$	157,583,999		$	176,823,950		$	6,206,907,271		$	5,440,595,385
$	405,994		$	257,385		$	(53,024,316	)	$	(24,531,763	)

63

Statements of Changes in Net Assets (Continued)

	Touchstone						Touchstone
	Small Cap						Small Cap
	Core Fund						Value Fund
	For the						For the
	Six Months						Six Months
	Ended			For the			Ended			For the
	March 31,			Year Ended			March 31,			Year Ended
	2014			September 30,			2014			September 30,
	(Unaudited)			2013			(Unaudited)			2013
From Operations
Net investment income (loss)	$	(1,311,764	)	$	18,286,539		$	334,851		$	728,685
Net realized gains (losses) on investments and foreign currency transactions		25,149,868			12,189,370			2,868,077			5,690,013
Net change in unrealized appreciation (depreciation) on investments		67,685,431			104,824,025			1,300,924			2,193,049
Change in Net Assets from Operations		91,523,535			135,299,934			4,503,852			8,611,747
Distributions to Shareholders from:
Net investment income, Class A		(1,986,763	)		(942,115	)		(206,951	)		(647,077	)
Net investment income, Class C		(238,421	)		(121,769	)		(4,049	)		(5,841	)
Net investment income, Class Y		(4,569,477	)		(2,366,301	)		(20,151	)		(11,057	)
Net investment income, Class Z		—			—			—			—
Net investment income, Institutional Class		(8,066,410	)		(3,846,773	)		(87,012	)		(55,956	)
Net realized gains, Class A		(1,883,497	)		(630,183	)		—			—
Net realized gains, Class C		(436,531	)		(187,197	)		—			—
Net realized gains, Class Y		(3,655,120	)		(1,285,170	)		—			—
Net realized gains, Institutional Class		(6,236,216	)		(1,967,687	)		—			—
Total Distributions		(27,072,435	)		(11,347,195	)		(318,163	)		(719,931	)
Net Increase (Decrease) from Share Transactions(A)		38,193,428			155,238,416			40,897,624			(2,391,599	)
Total Increase (Decrease) in Net Assets		102,644,528			279,191,155			45,083,313			5,500,217
Net Assets
Beginning of period		804,871,572			525,680,417			39,101,282			33,601,065
End of period	$	907,516,100		$	804,871,572		$	84,184,595		$	39,101,282
Accumulated Net Investment Income (Loss)	$	(3,439,999	)	$	12,732,836		$	16,688		$	—

^(A) For details on share transactions by class, see Statements of Changes in Net Assets - Capital Stock Activity on pages 72-75.

See accompanying Notes to Financial Statements.

64

Statements of Changes in Net Assets (Continued)

						Touchstone
Touchstone						Ultra Short
Total Return						Duration Fixed
Bond Fund						Income Fund
For the						For the
Six Months						Six Months
Ended			For the			Ended			For the
March 31,			Year Ended			March 31,			Year Ended
2014			September 30,			2014			September 30,
(Unaudited)			2013			(Unaudited)			2013
$	2,553,762		$	4,184,919		$	3,132,141		$	6,025,594
	(668,108	)		759,500			507,006			558,129
	1,736,089			(6,889,987	)		643,208			(2,931,388	)
	3,621,743			(1,945,568	)		4,282,355			3,652,335
	(128,960	)		(347,583	)		(139,987	)		(487,305	)
	(23,051	)		(68,454	)		(60,808	)		(148,936	)
	(330,290	)		(812,532	)		(2,045,166	)		(3,995,021	)
	—			—			(2,700,518	)		(5,742,283	)
	(2,090,782	)		(3,915,650	)		(480,206	)		(519,400	)
	—			(7,165	)		—			—
	—			(2,608	)		—			—
	—			(15,600	)		—			—
	—			(82,399	)		—			—
	(2,573,083	)		(5,251,991	)		(5,426,685	)		(10,892,945	)
	(20,459,890	)		(17,018,551	)		(33,510,040	)		161,736,572
	(19,411,230	)		(24,216,110	)		(34,654,370	)		154,495,962
	167,307,949			191,524,059			736,121,390			581,625,428
$	147,896,719		$	167,307,949		$	701,467,020		$	736,121,390
$	(193	)	$	19,128		$	(1,810,736	)	$	483,808

65

Statements of Changes in Net Assets - Capital Stock Activity

	Touchstone Arbitrage Fund
	For the Period
	Ended
	March 31, 2014(A)
	(Unaudited)
	Shares			Dollars
Class A
Proceeds from Shares issued		6,309,924		$	63,060,445
Reinvestment of distributions		—			—
Cost of Shares redeemed		(276,827	)		(2,770,870	)
Change in Class A Share Transactions		6,033,097			60,289,575
Class C
Proceeds from Shares issued		784,934			7,846,066
Reinvestment of distributions		—			—
Cost of Shares redeemed		(4,144	)		(41,409	)
Change in Class C Share Transactions		780,790			7,804,657
Class Y
Proceeds from Shares issued		9,098,010			91,076,551
Reinvestment of distributions		—			—
Cost of Shares redeemed		(88,796	)		(889,921	)
Change in Class Y Share Transactions		9,009,214			90,186,630
Institutional Class
Proceeds from Shares issued		5,420,548			54,193,492
Reinvestment of distributions		—			—
Cost of Shares redeemed		(60,568	)		(606,537	)
Change in Institutional Class Share Transactions		5,359,980			53,586,955
Change from Share Transactions		21,183,081		$	211,867,817

^(A)Represents the period from commencement of operations (October 1, 2013) through March 31, 2014.

See accompanying Notes to Financial Statements.

66

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

Touchstone Emerging Markets Equity Fund												Touchstone Global Real Estate Fund
For the Six Months												For the Six Months
Ended						For the Year						Ended						For the Year
March 31, 2014						Ended						March 31, 2014						Ended
(Unaudited)						September 30, 2013						(Unaudited)						September 30, 2013
Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
	59,654		$	665,862			567,760		$	7,165,296			5,050		$	53,543			16,018		$	203,002
	1,822			20,389			859			11,038			10,580			106,931			2,434			29,394
	(344,227	)		(3,843,640	)		(2,521,816	)		(30,327,887	)		(8,007	)		(88,264	)		(5,770	)		(70,612	)
	(282,751	)		(3,157,389	)		(1,953,197	)		(23,151,553	)		7,623			72,210			12,682			161,784
	23,613			259,109			63,004			772,978			1,896			19,277			15,027			195,729
	—			—			—			—			6,986			70,764			1,227			14,825
	(84,811	)		(923,291	)		(139,031	)		(1,681,976	)		(3,263	)		(37,003	)		(1,753	)		(21,164	)
	(61,198	)		(664,182	)		(76,027	)		(908,998	)		5,619			53,038			14,501			189,390
	1,884,296			20,576,564			5,554,259			69,147,852			1,356			15,592			10,262			131,613
	127,955			1,422,862			66,139			849,219			5,026			51,397			968			11,787
	(2,952,652	)		(33,172,586	)		(11,533,129	)		(134,802,684	)		(5,244	)		(54,978	)		(1,082	)		(13,362	)
	(940,401	)		(11,173,160	)		(5,912,731	)		(64,805,613	)		1,138			12,011			10,148			130,038
	8,461,663			92,279,677			5,547,305			69,038,192			16,429			193,391			58,011			729,514
	245,616			2,731,248			97,567			1,253,736			239,092			2,471,721			97,482			1,202,045
	(6,550,558	)		(73,760,789	)		(8,808,133	)		(109,558,550	)		(290,269	)		(3,444,306	)		(794,809	)		(9,961,649	)
	2,156,721			21,250,136			(3,163,261	)		(39,266,622	)		(34,748	)		(779,194	)		(639,316	)		(8,030,090	)
	872,371		$	6,255,405			(11,105,216	)	$	(128,132,786	)		(20,368	)	$	(641,935	)		(601,985	)	$	(7,548,878	)

67

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

	Touchstone International Fixed Income Fund
	For the Six Months
	Ended						For the Year
	March 31, 2014						Ended
	(Unaudited)						September 30, 2013
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		2,271		$	23,886			16,493		$	173,082
Reinvestment of distributions		1,588			16,322			978			10,369
Cost of Shares redeemed		(13,725	)		(142,856	)		(103,704	)		(1,079,738	)
Change in Class A Share Transactions		(9,866	)		(102,648	)		(86,233	)		(896,287	)
Class C
Proceeds from Shares issued		58			601			82			860
Reinvestment of distributions		418			4,260			106			1,118
Cost of Shares redeemed		—			—			(18,069	)		(187,934	)
Change in Class C Share Transactions		476			4,861			(17,881	)		(185,956	)
Class Y
Proceeds from Shares issued		—			—			6,268			65,563
Reinvestment of distributions		754			7,753			310			3,284
Cost of Shares redeemed		(7,028	)		(72,241	)		(19,170	)		(200,021	)
Change in Class Y Share Transactions		(6,274	)		(64,488	)		(12,592	)		(131,174	)
Class Z
Proceeds from Shares issued		—			—			—			—
Reinvestment of distributions		—			—			—			—
Cost of Shares redeemed		—			—			—			—
Change in Class Z Share Transactions		—			—			—			—
Institutional Class
Proceeds from Shares issued		1,136,488			11,795,273			724,214			7,530,588
Reinvestment of distributions		39,876			410,356			18,025			190,893
Cost of Shares redeemed		(600,938	)		(6,306,430	)		(703,755	)		(7,354,871	)
Change in Institutional Class Share Transactions		575,426			5,899,199			38,484			366,610
Change from Share Transactions		559,762		$	5,736,924			(78,222	)	$	(846,807	)

See accompanying Notes to Financial Statements.

68

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

Touchstone Merger Arbitrage Fund												Touchstone Mid Cap Fund
For the Six Months												For the Six Months
Ended						For the Year						Ended						For the Year
March 31, 2014						Ended						March 31, 2014						Ended
(Unaudited)						September 30, 2013						(Unaudited)						September 30, 2013
Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
	3,420,372		$	37,422,056			16,476,339		$	178,699,582			1,306,333		$	28,949,769			2,934,407		$	58,979,293
	799,051			8,581,806			161,374			1,713,795			2,129			48,558			2,767			46,590
	(7,892,938	)		(85,876,089	)		(5,764,946	)		(62,544,443	)		(759,424	)		(17,009,574	)		(902,309	)		(18,229,011	)
	(3,673,515	)		(39,872,227	)		10,872,767			117,868,934			549,038			11,988,753			2,034,865			40,796,872
	211,111			2,254,565			2,652,836			28,292,506			544,836			11,730,285			1,184,308			23,474,769
	138,877			1,462,374			28,038			294,398			—			—			1,188			19,628
	(531,022	)		(5,656,980	)		(514,087	)		(5,508,524	)		(67,659	)		(1,470,114	)		(16,836	)		(332,893	)
	(181,034	)		(1,940,041	)		2,166,787			23,078,380			477,177			10,260,171			1,168,660			23,161,504
	5,734,788			62,878,658			13,887,040			151,953,961			3,753,600			83,519,502			7,222,794			147,839,291
	689,761			7,445,499			84,113			895,808			10,996			251,910			10,452			176,644
	(5,086,747	)		(55,128,979	)		(5,168,052	)		(56,098,247	)		(2,143,367	)		(47,262,835	)		(1,448,133	)		(28,048,940	)
	1,337,802			15,195,178			8,803,101			96,751,522			1,621,229			36,508,577			5,785,113			119,966,995
	—			—			—			—			379,519			8,344,654			1,075,444			20,667,154
	—			—			—			—			157			3,557			3,892			65,114
	—			—			—			—			(305,532	)		(6,687,380	)		(475,176	)		(9,552,639	)
	—			—			—			—			74,144			1,660,831			604,160			11,179,629
	2,413,618			26,225,168			10,203,758			111,782,109			1,094,193			24,643,537			4,283,359			86,776,327
	531,575			5,752,897			82,741			882,847			4,442			101,755			13,426			226,908
	(2,922,678	)		(31,894,100	)		(2,330,984	)		(25,527,142	)		(904,541	)		(19,917,598	)		(1,498,715	)		(30,351,423	)
	22,515			83,965			7,955,515			87,137,814			194,094			4,827,694			2,798,070			56,651,812
	(2,494,232	)	$	(26,533,125	)		29,798,170		$	324,836,650			2,915,682		$	65,246,026			12,390,868		$	251,756,812

69

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

	Touchstone Mid Cap Value Fund
	For the Six Months
	Ended						For the Year
	March 31, 2014						Ended
	(Unaudited)						September 30, 2013
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		75,485		$	1,221,765			196,834		$	2,921,752
Proceeds from Shares issued in connection with merger(A)		913,005			14,967,633			—			—
Reinvestment of distributions		23,901			369,046			5,289			71,903
Cost of Shares redeemed		(122,156	)		(1,964,525	)		(134,837	)		(2,070,096	)
Change in Class A Share Transactions		890,235			14,593,919			67,286			923,559
Class C
Proceeds from Shares issued		14,190			228,729			28,883			430,243
Proceeds from Shares issued in connection with merger(A)		75,102			1,220,480			—			—
Reinvestment of distributions		4,492			68,682			274			3,539
Cost of Shares redeemed		(593	)		(9,375	)		(6,831	)		(99,683	)
Change in Class C Share Transactions		93,191			1,508,516			22,326			334,099
Class Y
Proceeds from Shares issued		283,360			4,668,345			662,196			9,650,959
Proceeds from Shares issued in connection with merger(A)		6,892,271			113,504,503			—			—
Reinvestment of distributions		93,373			1,451,204			21,720			297,372
Cost of Shares redeemed		(424,452	)		(6,899,693	)		(764,510	)		(11,720,968	)
Change in Class Y Share Transactions		6,844,552			112,724,359			(80,594	)		(1,772,637	)
Class Z
Proceeds from Shares issued		—			—			—			—
Reinvestment of distributions		—			—			—			—
Cost of Shares redeemed		—			—			—			—
Change in Class Z Share Transactions		—			—			—			—
Institutional Class
Proceeds from Shares issued		1,391,291			22,571,209			4,177,025			61,381,798
Proceeds from Shares issued in connection with merger(A)		1,714,774			28,350,276			—			—
Reinvestment of distributions		823,532			12,815,048			153,077			2,137,665
Cost of Shares redeemed		(4,996,770	)		(80,942,742	)		(1,138,182	)		(16,921,261	)
Change in Institutional Class Share Transactions		(1,067,173	)		(17,206,209	)		3,191,920			46,598,202
Change from Share Transactions		6,760,805		$	111,620,585			3,200,938		$	46,083,223

^(A) See Note 11 in the Notes to Financial Statements.

See accompanying Notes to Financial Statements.

70

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

Touchstone Premium Yield Equity Fund												Touchstone Sands Capital Select Growth Fund
For the Six Months												For the Six Months
Ended						For the Year						Ended						For the Year
March 31, 2014						Ended						March 31, 2014						Ended
(Unaudited)						September 30, 2013						(Unaudited)						September 30, 2013
Shares			Dollars			Shares			Dollars			Shares			Dollars			Shares			Dollars
	883,962		$	8,157,746			4,062,564		$	34,214,680			4,149,060		$	71,663,550			19,056,484		$	253,243,980
	—			—			—			—			—			—			—			—
	194,945			1,802,931			239,077			2,024,290			160,574			2,694,434			—			—
	(3,887,644	)		(35,117,682	)		(3,114,647	)		(26,815,297	)		(3,933,233	)		(67,791,691	)		(7,899,233	)		(106,636,148	)
	(2,808,737	)		(25,157,005	)		1,186,994			9,423,673			376,401			6,566,293			11,157,251			146,607,832
	318,937			2,925,176			971,989			8,312,998			721,404			12,164,650			6,698,538			85,620,167
	—			—			—			—			—			—			—			—
	61,496			568,266			38,028			321,605			71,038			1,164,306			—			—
	(343,673	)		(3,151,018	)		(248,618	)		(2,143,028	)		(842,541	)		(14,269,001	)		(1,210,228	)		(16,144,024	)
	36,760			342,424			761,399			6,491,575			(50,099	)		(940,045	)		5,488,310			69,476,143
	1,465,951			13,271,539			6,489,004			56,050,352			43,991,893			777,020,986			114,796,231			1,575,407,334
	—			—			—			—			—			—			—			—
	205,740			1,900,439			142,090			1,221,320			782,694			13,438,856			—			—
	(1,970,140	)		(18,115,461	)		(3,242,622	)		(27,912,607	)		(31,531,130	)		(542,823,947	)		(45,712,525	)		(638,267,348	)
	(298,449	)		(2,943,483	)		3,388,472			29,359,065			13,243,457			247,635,895			69,083,706			937,139,986
	—			—			—			—			17,563,119			303,718,929			78,173,861			1,025,556,852
	—			—			—			—			1,005,601			16,873,992			—			—
	—			—			—			—			(17,123,067	)		(295,763,666	)		(90,283,128	)		(1,195,692,370	)
	—			—			—			—			1,445,653			24,829,255			(12,109,267	)		(170,135,518	)
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—
	(3,070,426	)	$	(27,758,064	)		5,336,865		$	45,274,313			15,015,412		$	278,091,398			73,620,000		$	983,088,443

71

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

	Touchstone Small Cap Core Fund
	For the Six Months
	Ended						For the Year
	March 31, 2014						Ended
	(Unaudited)						September 30, 2013
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		893,096		$	18,299,669			2,755,214		$	49,649,792
Proceeds from Shares issued in connection with merger(A)		—			—			—			—
Reinvestment of distributions		179,856			3,724,470			93,286			1,512,949
Cost of Shares redeemed		(913,919	)		(18,798,408	)		(1,829,055	)		(32,986,610	)
Change in Class A Share Transactions		159,033			3,225,731			1,019,445			18,176,131
Class C
Proceeds from Shares issued		31,416			630,613			125,334			2,194,830
Proceeds from Shares issued in connection with merger(A)		—			—			—			—
Reinvestment of distributions		28,665			578,774			16,268			259,899
Cost of Shares redeemed		(115,584	)		(2,335,685	)		(179,780	)		(3,150,506	)
Change in Class C Share Transactions		(55,503	)		(1,126,298	)		(38,178	)		(695,777	)
Class Y
Proceeds from Shares issued		2,118,743			43,791,309			5,608,051			102,414,124
Proceeds from Shares issued in connection with merger(A)		—			—			—			—
Reinvestment of distributions		325,231			6,788,917			187,973			3,063,207
Cost of Shares redeemed		(2,309,500	)		(48,024,062	)		(3,098,592	)		(54,941,383	)
Change in Class Y Share Transactions		134,474			2,556,164			2,697,432			50,535,948
Institutional Class
Proceeds from Shares issued(B)		3,247,807			67,236,777			8,137,090			148,321,119
Proceeds from Shares issued in connection with merger(A)		—			—			—			—
Reinvestment of distributions		382,417			7,971,468			231,422			3,764,027
Cost of Shares redeemed		(2,004,980	)		(41,670,414	)		(3,526,004	)		(64,863,032	)
Change in Institutional Class Share Transactions		1,625,244			33,537,831			4,842,508			87,222,114
Change from Share Transactions		1,863,248		$	38,193,428			8,521,207		$	155,238,416

^(A) See Note 11 in the Notes to Financial Statements. 

^(B) Includes a subscription-in-kind for the Small Cap Value Fund on March 21, 2014, which resulted in a subscription into the fund of $24,800,570 with shares of 994,011.

See accompanying Notes to Financial Statements.

72

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

Touchstone Small Cap Value Fund
For the Six Months
Ended						For the Year
March 31, 2014						Ended
(Unaudited)						September 30, 2013
Shares			Dollars			Shares			Dollars
	141,673		$	3,491,300			145,731		$	2,992,876
	100,358			2,549,878			—			—
	8,116			201,144			30,906			626,985
	(171,405	)		(4,133,406	)		(400,091	)		(8,086,608	)
	78,742			2,108,916			(223,454	)		(4,466,747	)
	5,945			139,236			37,591			776,680
	59,836			1,506,072			—			—
	124			3,046			279			5,797
	(13,503	)		(318,932	)		(6,389	)		(139,799	)
	52,402			1,329,422			31,481			642,678
	14,637			362,350			22,783			464,463
	269,342			6,856,609			—			—
	503			12,459			527			11,057
	(15,413	)		(387,106	)		(1,690	)		(33,553	)
	269,069			6,844,312			21,620			441,967
	1,002,222			25,003,169			56,619			1,050,016
	233,106			5,932,909			—			—
	3,513			87,012			2,734			55,956
	(16,262	)		(408,116	)		(5,740	)		(115,469	)
	1,222,579			30,614,974			53,613			990,503
	1,622,792		$	40,897,624			(116,740	)	$	(2,391,599	)

73

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

	Touchstone Total Return Bond Fund
	For the Six Months
	Ended						For the Year
	March 31, 2014						Ended
	(Unaudited)						September 30, 2013
	Shares			Dollars			Shares			Dollars
Class A
Proceeds from Shares issued		54,369		$	547,626			766,912		$	8,024,153
Reinvestment of distributions		11,917			120,249			32,356			334,720
Cost of Shares redeemed		(609,785	)		(6,149,020	)		(562,703	)		(5,800,575	)
Change in Class A Share Transactions		(543,499	)		(5,481,145	)		236,565			2,558,298
Class C
Proceeds from Shares issued		11,783			118,479			164,043			1,728,220
Reinvestment of distributions		2,111			21,285			6,072			62,918
Cost of Shares redeemed		(76,321	)		(770,049	)		(236,519	)		(2,432,808	)
Change in Class C Share Transactions		(62,427	)		(630,285	)		(66,404	)		(641,670	)
Class Y
Proceeds from Shares issued		546,434			5,514,495			875,029			9,164,218
Proceeds from Shares issued in connection with merger(A)		—			—			—			—
Reinvestment of distributions		32,334			326,874			79,074			820,696
Cost of Shares redeemed		(623,137	)		(6,292,094	)		(1,831,838	)		(18,762,033	)
Change in Class Y Share Transactions		(44,369	)		(450,725	)		(877,735	)		(8,777,119	)
Class Z
Proceeds from Shares issued		—			—			—			—
Proceeds from Shares issued in connection with merger(A)		—			—			—			—
Reinvestment of distributions		—			—			—			—
Cost of Shares redeemed		—			—			—			—
Change in Class Z Share Transactions		—			—			—			—
Institutional Class
Proceeds from Shares issued		1,293,948			13,062,851			3,244,273			33,351,984
Reinvestment of distributions		206,925			2,090,782			375,704			3,889,399
Cost of Shares redeemed		(2,879,378	)		(29,051,368	)		(4,525,810	)		(47,399,443	)
Change in Institutional Class Share Transactions		(1,378,505	)		(13,897,735	)		(905,833	)		(10,158,060	)
Change from Share Transactions		(2,028,800	)	$	(20,459,890	)		(1,613,407	)	$	(17,018,551	)

^(A) See Note 11 in the Notes to Financial Statements.

See accompanying Notes to Financial Statements.

74

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

Touchstone Ultra Short Duration Fixed Income Fund
For the Six Months
Ended						For the Year
March 31, 2014						Ended
(Unaudited)						September 30, 2013
Shares			Dollars			Shares			Dollars
	383,212		$	3,620,181			3,764,497		$	35,791,356
	13,184			124,518			46,701			444,277
	(2,519,906	)		(23,812,946	)		(3,996,637	)		(38,041,490	)
	(2,123,510	)		(20,068,247	)		(185,439	)		(1,805,857	)
	68,289			644,970			796,167			7,583,595
	4,164			39,322			8,991			85,496
	(258,797	)		(2,444,657	)		(574,438	)		(5,469,480	)
	(186,344	)		(1,760,365	)		230,720			2,199,611
	5,694,705			53,784,675			14,488,359			137,674,950
	—			—			5,701,547			54,224,138
	113,087			1,067,937			245,503			2,334,564
	(7,220,995	)		(68,205,686	)		(13,993,887	)		(132,971,124	)
	(1,413,203	)		(13,353,074	)		6,441,522			61,262,528
	12,270,797			115,889,272			32,594,401			309,984,691
	—			—			3,383,059			32,175,399
	280,891			2,652,569			542,072			5,154,193
	(12,076,287	)		(114,081,279	)		(31,578,863	)		(300,620,937	)
	475,401			4,460,562			4,940,669			46,693,346
	1,577,007			14,891,060			7,427,372			70,628,165
	47,070			444,510			49,119			465,418
	(1,919,183	)		(18,124,486	)		(1,864,515	)		(17,706,639	)
	(295,106	)		(2,788,916	)		5,611,976			53,386,944
	(3,542,762	)	$	(33,510,040	)		17,039,448		$	161,736,572

75

Financial Highlights

Touchstone Arbitrage Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Period Ended
	March 31,
	2014(A)
	(Unaudited)
Net asset value at beginning of periodl	$	10.00
Income (loss) from investment operations:
Net investment loss		(0.03	)
Net realized and unrealized gains on investments		0.03
Total from investment operations		—
Net asset value at end of period	$	10.00
Total return(B)		0.00	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	60,320
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(D)		2.59	%(E)
Gross expenses (including dividend expense on securities sold short)(F)		2.59	%(E)
Net investment loss		(1.25	%)(E)
Portfolio turnover rate		155	%(C)

Touchstone Arbitrage Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Period Ended
	March 31,
	2014(A)
	(Unaudited)
Net asset value at beginning of period	$	10.00
Loss from investment operations:
Net investment loss		(0.03	)
Net realized and unrealized losses on investments		—	(G)
Total from investment operations		(0.03	)
Net asset value at end of period	$	9.97
Total return(B)		(0.30	%)(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	7,787
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(D)		3.39	%(E)
Gross expenses (including dividend expense on securities sold short)(F)		3.78	%(E)
Net investment loss		(2.05	%)(E)
Portfolio turnover rate		155	%(C)

^(A) Represents the period from commencement of operations (October 1, 2013) through March 31, 2014.

^(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) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.63% and for Class C is 2.43% for the period ended March 31, 2014.

^(E) Annualized.

^(F) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short for Class A is 1.63% and for Class C is 2.82% for the perod ended March 31, 2014.

^(G) Less than $0.005 per share.

See accompanying Notes to Financial Statements.

76

Financial Highlights (Continued)

Touchstone Arbitrage Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Period Ended
	March 31,
	2014(A)
	(Unaudited)
Net asset value at beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss		(0.02	)
Net realized and unrealized gains on investments		0.03
Total from investment operations		0.01
Net asset value at end of period	$	10.01
Total return		0.10	%(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	90,194
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(C)		2.30	%(D)
Gross expenses (including dividend expense on securities sold short(E)		2.30	%(D)
Net investment loss		(0.97	%)(D)
Portfolio turnover rate		155	%(B)

Touchstone Arbitrage Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Period Ended
	March 31,
	2014(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		0.06
Total from investment operations		0.02
Net asset value at end of period	$	10.02
Total return		0.20	%(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	53,706
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(C)		2.24	%(D)
Gross expenses (including dividend expense on securities sold short)(E)		2.25	%(D)
Net investment loss		(0.90	%)(D)
Portfolio turnover rate		155	%(B)

^(A) Represents the period from commencement of operations (October 1, 2013) through March 31, 2014.

^(B) Not annualized.

^(C) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short for Class Y is 1.34% and for Institutional Class is 1.28% for the period ended March 31, 2014.

^(D) Annualized.

^(E) The ratio of gross expenses to average net assets excluding for dividend and interest expense on securities sold short for Class Y is 1.34% and for Institutional Class is 1.29% for the period ended March 31, 2014.

See accompanying Notes to Financial Statements.

77

Financial Highlights (Continued)

Touchstone Emerging Markets Equity Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	11.52		$	12.24		$	10.69		$	12.68		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)(B)		0.09	(B)		0.11			0.10			0.03
Net realized and unrealized gains (losses) on investments		(0.31	)		(0.80	)		1.68			(2.05	)		2.65
Total from investment operations		(0.32	)		(0.71	)		1.79			(1.95	)		2.68
Distributions from:
Net investment income		(0.03	)		(0.01	)		(0.15	)		(0.02	)		—
Realized capital gains		—			—			(0.09	)		(0.02	)		—
Total distributions		(0.03	)		(0.01	)		(0.24	)		(0.04	)		—
Net asset value at end of period	$	11.17		$	11.52		$	12.24		$	10.69		$	12.68
Total return(C)		(2.75	%)(D)		(5.69	%)		16.71	%		(15.45	%)		26.80	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	6,389		$	9,843		$	34,369		$	26,592		$	10,343
Ratio to average net assets:
Net expenses		1.69	%(E)		1.69	%		1.72	%		1.74	%		1.74	%
Gross expenses		2.35	%(E)		1.93	%		1.99	%		1.95	%		2.25	%
Net investment income (loss)		(0.13	%)(E)		0.71	%		0.94	%		0.98	%		0.76	%
Portfolio turnover rate		30	%(D)		25	%		33	%(F)		18	%		8	%

Touchstone Emerging Markets Equity Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	11.33		$	12.13		$	10.54		$	12.58		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.05	)(B)		(—	)(B)(G)		0.04			0.03			—	(G)
Net realized and unrealized gains (losses) on investments		(0.30	)		(0.80	)		1.64			(2.05	)		2.58
Total from investment operations		(0.35	)		(0.80	)		1.68			(2.02	)		2.58
Distributions from:
Net investment income		—			—			—	(G)		—			—
Realized capital gains		—			—			(0.09	)		(0.02	)		—
Total distributions		—			—			(0.09	)		(0.02	)		—
Net asset value at end of period	$	10.98		$	11.33		$	12.13		$	10.54		$	12.58
Total return(C)		(3.09	%)(D)		(6.44	%)		15.84	%		(16.07	%)		25.80	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	2,934		$	3,719		$	4,903		$	5,417		$	3,590
Ratio to average net assets:
Net expenses		2.44	%(E)		2.44	%		2.47	%		2.49	%		2.49	%
Gross expenses		3.04	%(E)		2.84	%		2.85	%		2.82	%		2.99	%
Net investment income (loss)		(0.88	%)(E)		(0.04	%)		0.19	%		0.21	%		(0.03	%)
Portfolio turnover rate		30	%(D)		25	%		33	%(F)		18	%		8	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(B) The net investment income (loss) 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) Portfolio turnover excludes the purchases and sales of the Touchstone Emerging Markets Equity Fund II acquired on September 17, 2012. If these transactions were included, portfolio turnover would have been higher.

^(G) Less than $0.005 per share.

See accompanying Notes to Financial Statements.

78

Financial Highlights (Continued)

Touchstone Emerging Markets Equity Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	11.54		$	12.27		$	10.74		$	12.72		$	10.00
Income (loss) from investment operations:
Net investment income		0.01	(B)		0.13	(B)		0.14			0.11			0.01
Net realized and unrealized gains (losses) on investments		(0.31	)		(0.81	)		1.70			(2.05	)		2.71
Total from investment operations		(0.30	)		(0.68	)		1.84			(1.94	)		2.72
Distributions from:
Net investment income		(0.13	)		(0.05	)		(0.22	)		(0.02	)		—
Realized capital gains		—			—			(0.09	)		(0.02	)		—
Total distributions		(0.13	)		(0.05	)		(0.31	)		(0.04	)		—
Net asset value at end of period	$	11.11		$	11.54		$	12.27		$	10.74		$	12.72
Total return		(2.57	%)(C)		(5.45	%)		17.12	%		(15.21	%)		27.10	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	122,885		$	138,451		$	219,717		$	151,532		$	13,597
Ratio to average net assets:
Net expenses		1.38	%(D)		1.37	%		1.41	%		1.48	%		1.49	%
Gross expenses		1.40	%(D)		1.35	%		1.44	%		1.48	%		2.10	%
Net investment income		0.18	%(D)		1.04	%		1.25	%		1.50	%		0.86	%
Portfolio turnover rate		30	%(C)		25	%		33	%(E)		18	%		8	%

Touchstone Emerging Markets Equity Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	11.55		$	12.28		$	10.76		$	12.74		$	10.00
Income (loss) from investment operations:
Net investment income		0.02	(B)		0.14	(B)		0.18			0.13			0.05
Net realized and unrealized gains (losses) on investments		(0.30	)		(0.81	)		1.67			(2.06	)		2.69
Total from investment operations		(0.28	)		(0.67	)		1.85			(1.93	)		2.74
Distributions from:
Net investment income		(0.15	)		(0.06	)		(0.24	)		(0.03	)		—
Realized capital gains		—			—			(0.09	)		(0.02	)		—
Total distributions		(0.15	)		(0.06	)		(0.33	)		(0.05	)		—
Net asset value at end of period	$	11.12		$	11.55		$	12.28		$	10.76		$	12.74
Total return		(2.43	%)(C)		(5.43	%)		17.28	%		(15.18	%)		27.40	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	234,229		$	218,523		$	271,186		$	244,657		$	125,414
Ratio to average net assets:
Net expenses		1.29	%(D)		1.29	%		1.32	%		1.34	%		1.34	%
Gross expenses		1.33	%(D)		1.29	%		1.37	%		1.43	%		1.74	%
Net investment income		0.27	%(D)		1.11	%		1.34	%		1.51	%		1.26	%
Portfolio turnover rate		30	%(C)		25	%		33	%(E)		18	%		8	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

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

^(C) Not annualized.

^(D) Annualized.

^(E) Portfolio turnover excludes the purchases and sales of the Touchstone Emerging Markets Equity Fund II acquired on September 17, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

79

Financial Highlights (Continued)

Touchstone Global Real Estate Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	12.03		$	11.86		$	9.76		$	11.46		$	10.00
Income (loss) from investment operations:
Net investment income		0.22			0.30	(B)		0.20	(B)		0.35			0.36
Net realized and unrealized gains (losses) on investments		0.34			0.55			2.51			(1.10	)		1.45
Total from investment operations		0.56			0.85			2.71			(0.75	)		1.81
Distributions from:
Net investment income		(0.42	)		(0.58	)		(0.16	)		(0.48	)		(0.35	)
Realized capital gains		(1.77	)		(0.10	)		(0.45	)		(0.47	)		—
Total distributions		(2.19	)		(0.68	)		(0.61	)		(0.95	)		(0.35	)
Net asset value at end of period	$	10.40		$	12.03		$	11.86		$	9.76		$	11.46
Total return(C)		5.88	%(D)		7.22	%		29.15	%		(7.47	%)		18.54	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	637		$	645		$	486		$	2,038		$	881
Ratio to average net assets:
Net expenses		1.39	%(E)		1.39	%		1.39	%		1.39	%		1.39	%
Gross expenses		3.69	%(E)		3.73	%		3.27	%		3.55	%		4.27	%
Net investment income		4.21	%(E)		2.42	%		1.87	%		2.30	%		2.94	%
Portfolio turnover rate		29	%(D)		159	%		94	%		85	%		107	%

Touchstone Global Real Estate Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	12.06		$	11.90		$	9.80		$	11.50		$	10.00
Income (loss) from investment operations:
Net investment income		0.17			0.21	(B)		0.12	(B)		0.20			0.17
Net realized and unrealized gains (losses) on investments		0.35			0.54			2.52			(1.05	)		1.58
Total from investment operations		0.52			0.75			2.64			(0.85	)		1.75
Distributions from:
Net investment income		(0.38	)		(0.49	)		(0.09	)		(0.38	)		(0.25	)
Realized capital gains		(1.77	)		(0.10	)		(0.45	)		(0.47	)		—
Total distributions		(2.15	)		(0.59	)		(0.54	)		(0.85	)		(0.25	)
Net asset value at end of period	$	10.43		$	12.06		$	11.90		$	9.80		$	11.50
Total return(C)		5.49	%(D)		6.35	%		28.19	%		(8.20	%)		17.75	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	406		$	401		$	223		$	116		$	123
Ratio to average net assets:
Net expenses		2.14	%(E)		2.14	%		2.14	%		2.14	%		2.14	%
Gross expenses		4.99	%(E)		5.54	%		7.79	%		11.08	%		4.60	%
Net investment income		3.46	%(E)		1.67	%		1.12	%		1.58	%		1.60	%
Portfolio turnover rate		29	%(D)		159	%		94	%		85	%		107	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(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.

See accompanying Notes to Financial Statements.

80

Financial Highlights (Continued)

Touchstone Global Real Estate Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	12.14		$	11.97		$	9.84		$	11.53		$	10.00
Income (loss) from investment operations:
Net investment income		0.21			0.34	(B)		0.23	(B)		0.32			0.28
Net realized and unrealized gains (losses) on investments		0.37			0.54			2.54			(1.06	)		1.58
Total from investment operations		0.58			0.88			2.77			(0.74	)		1.86
Distributions from:
Net investment income		(0.43	)		(0.61	)		(0.19	)		(0.48	)		(0.33	)
Realized capital gains		(1.77	)		(0.10	)		(0.45	)		(0.47	)		—
Total distributions		(2.20	)		(0.71	)		(0.64	)		(0.95	)		(0.33	)
Net asset value at end of period	$	10.52		$	12.14		$	11.97		$	9.84		$	11.53
Total return		6.03	%(C)		7.42	%		29.53	%		(7.27	%)		18.90	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	251		$	276		$	150		$	118		$	129
Ratio to average net assets:
Net expenses		1.14	%(D)		1.14	%		1.14	%		1.14	%		1.14	%
Gross expenses		4.98	%(D)		5.95	%		7.29	%		9.49	%		3.62	%
Net investment income		4.46	%(D)		2.67	%		2.12	%		2.59	%		2.61	%
Portfolio turnover rate		29	%(C)		159	%		94	%		85	%		107	%

Touchstone Global Real Estate Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	12.26		$	12.07		$	9.92		$	11.61		$	10.00
Income (loss) from investment operations:
Net investment income		0.25			0.36	(B)		0.26	(B)		0.33			0.29
Net realized and unrealized gains (losses) on investments		0.34			0.56			2.55			(1.07	)		1.59
Total from investment operations		0.59			0.92			2.81			(0.74	)		1.88
Distributions from:
Net investment income		(0.44	)		(0.63	)		(0.21	)		(0.48	)		(0.27	)
Realized capital gains		(1.77	)		(0.10	)		(0.45	)		(0.47	)		—
Total distributions		(2.21	)		(0.73	)		(0.66	)		(0.95	)		(0.27	)
Net asset value at end of period	$	10.64		$	12.26		$	12.07		$	9.92		$	11.61
Total return		6.05	%(C)		7.67	%		29.68	%		(7.21	%)		19.12	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	13,275		$	15,716		$	23,201		$	2,994		$	3,232
Ratio to average net assets:
Net expenses		0.99	%(D)		0.99	%		0.99	%		0.99	%		0.99	%
Gross expenses		1.71	%(D)		1.54	%		2.09	%		3.15	%		3.34	%
Net investment income		4.61	%(D)		2.82	%		2.27	%		2.73	%		2.75	%
Portfolio turnover rate		29	%(C)		159	%		94	%		85	%		107	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(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.

81

Financial Highlights (Continued)

Touchstone International Fixed Income Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	10.45		$	10.68		$	10.49		$	11.38		$	10.00
Income (loss) from investment operations:
Net investment income		0.07			0.10			0.14	(B)		0.14			0.12
Net realized and unrealized gains (losses) on investments		0.20			(0.27	)		0.47			0.02			1.38
Total from investment operations		0.27			(0.17	)		0.61			0.16			1.50
Distributions from:
Net investment income		(0.08	)		(0.02	)		(0.38	)		(1.00	)		(0.12	)
Realized capital gains		(0.14	)		(0.04	)		(0.04	)		(0.05	)		—
Total distributions		(0.22	)		(0.06	)		(0.42	)		(1.05	)		(0.12	)
Net asset value at end of period	$	10.50		$	10.45		$	10.68		$	10.49		$	11.38
Total return(C)		2.63	%(D)		(1.66	%)		6.24	%		1.67	%		15.15	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	893		$	991		$	1,934		$	2,555		$	1,319
Ratio to average net assets:
Net expenses		1.09	%(E)		1.09	%		1.09	%		1.09	%		1.09	%
Gross expenses		2.86	%(E)		2.47	%		1.97	%		2.18	%		2.47	%
Net investment income		1.34	%(E)		0.96	%		1.36	%		2.06	%		1.39	%
Portfolio turnover rate		29	%(D)		59	%		56	%		64	%		160	%

Touchstone International Fixed Income Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	10.38		$	10.67		$	10.48		$	11.37		$	10.00
Income (loss) from investment operations:
Net investment income		0.04			0.01			0.06	(B)		0.13			0.05
Net realized and unrealized gains (losses) on investments		0.19			(0.26	)		0.47			(0.05	)		1.37
Total from investment operations		0.23			(0.25	)		0.53			0.08			1.42
Distributions from:
Net investment income		(0.06	)		(—	)(F)		(0.30	)		(0.92	)		(0.05	)
Realized capital gains		(0.14	)		(0.04	)		(0.04	)		(0.05	)		—
Total distributions		(0.20	)		(0.04	)		(0.34	)		(0.97	)		(0.05	)
Net asset value at end of period	$	10.41		$	10.38		$	10.67		$	10.48		$	11.37
Total return(C)		2.26	%(D)		(2.32	%)		5.37	%		0.94	%		14.29	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	240		$	234		$	432		$	581		$	407
Ratio to average net assets:
Net expenses		1.84	%(E)		1.84	%		1.84	%		1.84	%		1.84	%
Gross expenses		6.89	%(E)		6.15	%		4.73	%		4.53	%		3.16	%
Net investment income		0.60	%(E)		0.21	%		0.61	%		1.14	%		0.59	%
Portfolio turnover rate		29	%(D)		59	%		56	%		64	%		160	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(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) Less than $0.005 per share.

See accompanying Notes to Financial Statements.

82

Financial Highlights (Continued)

Touchstone International Fixed Income Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	10.45		$	10.66		$	10.48		$	11.37		$	10.00
Income (loss) from investment operations:
Net investment income		0.06			0.14			0.17	(B)		0.20	(B)		0.16
Net realized and unrealized gains (losses) on investments		0.22			(0.28	)		0.46			(0.01	)		1.37
Total from investment operations		0.28			(0.14	)		0.63			0.19			1.53
Distributions from:
Net investment income		(0.08	)		(0.03	)		(0.41	)		(1.03	)		(0.16	)
Realized capital gains		(0.14	)		(0.04	)		(0.04	)		(0.05	)		—
Total distributions		(0.22	)		(0.07	)		(0.45	)		(1.08	)		(0.16	)
Net asset value at end of period	$	10.51		$	10.45		$	10.66		$	10.48		$	11.37
Total return		2.89	%(C)		(1.41	%)		6.42	%		1.97	%		15.41	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	312		$	376		$	517		$	721		$	193
Ratio to average net assets:
Net expenses		0.84	%(D)		0.84	%		0.84	%		0.84	%		0.84	%
Gross expenses		4.08	%(D)		3.61	%		2.91	%		2.91	%		2.50	%
Net investment income		1.59	%(D)		1.21	%		1.61	%		1.92	%		1.52	%
Portfolio turnover rate		29	%(C)		59	%		56	%		64	%		160	%

Touchstone International Fixed Income Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	10.47		$	10.67		$	10.48		$	11.37		$	10.00
Income (loss) from investment operations:
Net investment income		0.10			0.14			0.18	(B)		0.23			0.17
Net realized and unrealized gains (losses) on investments		0.20			(0.27	)		0.47			(0.02	)		1.37
Total from investment operations		0.30			(0.13	)		0.65			0.21			1.54
Distributions from:
Net investment income		(0.09	)		(0.03	)		(0.42	)		(1.05	)		(0.17	)
Realized capital gains		(0.14	)		(0.04	)		(0.04	)		(0.05	)		—
Total distributions		(0.23	)		(0.07	)		(0.46	)		(1.10	)		(0.17	)
Net asset value at end of period	$	10.54		$	10.47		$	10.67		$	10.48		$	11.37
Total return		2.93	%(C)		(1.28	%)		6.69	%		2.11	%		15.59	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	35,405		$	29,157		$	29,297		$	7,931		$	7,746
Ratio to average net assets:
Net expenses		0.69	%(D)		0.69	%		0.69	%		0.69	%		0.69	%
Gross expenses		0.96	%(D)		1.02	%		1.03	%		1.41	%		1.64	%
Net investment income		1.74	%(D)		1.36	%		1.76	%		2.25	%		1.67	%
Portfolio turnover rate		29	%(C)		59	%		56	%		64	%		160	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(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.

83

Financial Highlights (Continued)

Touchstone Merger Arbitrage Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	11.05		$	10.65		$	10.02		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.07	)(B)		0.07	(B)		(0.09	)(B)		—	(C)
Net realized and unrealized gains on investments		0.09			0.44			0.73			0.02
Total from investment operations		0.02			0.51			0.64			0.02
Distributions from:
Net investment income		(0.05	)		—			—	(C)		—
Realized capital gains		(0.33	)		(0.11	)		(0.01	)		—
Total distributions		(0.38	)		(0.11	)		(0.01	)		—
Net asset value at end of period	$	10.69		$	11.05		$	10.65		$	10.02
Total return(D)		0.13	%(E)		4.84	%		6.35	%		0.30	%(E)
Ratios and supplemental data:
Net assets at end of period (000's)	$	227,667		$	275,858		$	150,148		$	260
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(F)		2.54	%(G)		2.27	%		1.96	%		3.33	%(G)
Gross expenses (including dividend expense on securities sold short)(H)		2.54	%(G)		2.27	%		1.97	%		28.67	%(G)
Net investment income (loss)		(1.30	%)(G)		0.65	%		(0.90	%)		(1.97	%)(G)
Portfolio turnover rate		159	%(E)		288	%		307	%		311	%(E)

^(A) Represents the period from commencement of operations (August 9, 2011) through September 30, 2011.

^(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) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.58%, 1.64%, 1.65% and 1.69% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.

^(G) Annualized.

^(H) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.58%, 1.64%, 1.66% and 27.03% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.

See accompanying Notes to Financial Statements.

84

Financial Highlights (Continued)

Touchstone Merger Arbitrage Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	10.85		$	10.54		$	10.01		$	10.00
Income (loss) from investment operations:
Net investment loss		(0.11	)(B)		(0.01	)(B)		(0.17	)(B)		(0.01	)
Net realized and unrealized gains on investments		0.09			0.43			0.71			0.02
Total from investment operations		(0.02	)		0.42			0.54			0.01
Distributions from:
Net investment income		—			—			—	(C)		—
Realized capital gains		(0.33	)		(0.11	)		(0.01	)		—
Total distributions		(0.33	)		(0.11	)		(0.01	)		—
Net asset value at end of period	$	10.50		$	10.85		$	10.54		$	10.01
Total return(D)		(0.23	%)(E)		3.93	%		5.56	%		0.10	%(E)
Ratios and supplemental data:
Net assets at end of period (000's)	$	46,484		$	50,001		$	25,739		$	254
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(F)		3.32	%(G)		3.05	%		2.74	%		4.23	%(G)
Gross expenses (including dividend expense on securities sold short)(H)		3.32	%(G)		3.05	%		2.75	%		29.58	%(G)
Net investment loss		(2.08	%)(G)		(0.13	%)		(1.68	%)		(2.74	%)(G)
Portfolio turnover rate		159	%(E)		288	%		307	%		311	%(E)

^(A) Represents the period from commencement of operations (August 9, 2011) through September 30, 2011.

^(B) The net investment 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) The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 2.36%, 2.42%, 2.43% and 2.43% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.

^(G) Annualized.

^(H) The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 2.36%, 2.42%, 2.44% and 27.78% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.

See accompanying Notes to Financial Statements.

85

Financial Highlights (Continued)

Touchstone Merger Arbitrage Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	11.10		$	10.68		$	10.02		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.05	)(B)		0.10	(B)		(0.07	)(B)		(0.01	)
Net realized and unrealized gains on investments		0.09			0.43			0.74			0.03
Total from investment operations		0.04			0.53			0.67			0.02
Distributions from:
Net investment income		(0.07	)		—			—	(C)		—
Realized capital gains		(0.33	)		(0.11	)		(0.01	)		—
Total distributions		(0.40	)		(0.11	)		(0.01	)		—
Net asset value at end of period	$	10.74		$	11.10		$	10.68		$	10.02
Total return		0.36	%(D)		5.01	%		6.75	%		0.20	%(D)
Net assets at end of period (000's)	$	200,100		$	192,095		$	90,741		$	1,160
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(E)		2.25	%(F)		2.02	%		1.68	%		2.74	%(F)
Gross expenses (including dividend expense on securities sold short)(G)		2.25	%(F)		2.01	%		1.70	%		8.22	%(F)
Net investment income (loss)		(1.00	%)(F)		0.90	%		(0.62	%)		(1.65	%)(F)
Portfolio turnover rate		159	%(D)		288	%		307	%		311	%(D)

(A)	Represents the period from commencement of operations (August 9, 2011) through September 30, 2011.
(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)	Not annualized.
(E)	The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.29%, 1.39%, 1.37% and 1.43% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended 2011, respectively.
(F)	Annualized.
(G)	The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.29%, 1.38%, 1.39% and 6.91% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.

See accompanying Notes to Financial Statements.

86

Financial Highlights (Continued)

Touchstone Merger Arbitrage Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	11.13		$	10.69		$	10.03		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.05	)(B)		0.11	(B)		(0.06	)(B)		(0.02	)
Net realized and unrealized gains on investments		0.08			0.44			0.73			0.05
Total from investment operations		0.03			0.55			0.67			0.03
Distributions from:
Net investment income		(0.08	)		—			—	(C)		—
Realized capital gains		(0.33	)		(0.11	)		(0.01	)		—
Total distributions		(0.41	)		(0.11	)		(0.01	)		—
Net asset value at end of period	$	10.75		$	11.13		$	10.69		$	10.03
Total return		0.23	%(D)		5.20	%		6.75	%		0.30	%(D)
Net assets at end of period (000's)	$	165,456		$	170,930		$	79,164		$	5,016
Ratio to average net assets:
Net expenses (including dividend expense on securities sold short)(E)		2.23	%(F)		1.91	%		1.59	%		1.86	%(F)
Gross expenses (including dividend expense on securities sold short)(G)		2.20	%(F)		1.92	%		1.62	%		4.83	%(F)
Net investment income (loss)		(0.99	%)(F)		1.01	%		(0.53	%)		(1.13	%)(F)
Portfolio turnover rate		159	%(D)		288	%		307	%		311	%(D)

(A)	Represents the period from commencement of operations (August 9, 2011) through September 30, 2011.
(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)	Not annualized.
(E)	The ratio of net expenses to average net assets excluding dividend and interest expense on securities sold short is 1.27%, 1.28%, 1.28% and 1.28% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.
(F)	Annualized.
(G)	The ratio of gross expenses to average net assets excluding dividend and interest expense on securities sold short is 1.25%, 1.29%, 1.31% and 4.25% for the six months ended March 31, 2014, years ended September 2013, 2012 and for the period ended September 2011, respectively.

See accompanying Notes to Financial Statements.

87

Financial Highlights (Continued)

Touchstone Mid Cap Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	20.87		$	16.55		$	13.16		$	12.67		$	11.20		$	13.07
Income (loss) from investment operations:
Net investment income (loss)		0.02			0.12	(A)		0.10	(A)		(0.02	)		0.29			0.04
Net realized and unrealized gains (losses) on investments		2.15			4.51			3.31			0.51			1.24			(1.85	)
Total from investment operations		2.17			4.63			3.41			0.49			1.53			(1.81	)
Distributions from:
Net investment income		(0.02	)		(0.31	)		(0.02	)		—			(0.06	)		(0.03	)
Realized capital gains		—			—			—			—			—			(0.03	)
Total distributions		(0.02	)		(0.31	)		(0.02	)		—			(0.06	)		(0.06	)
Net asset value at end of period	$	23.02		$	20.87		$	16.55		$	13.16		$	12.67		$	11.20
Total return(B)		10.41	%(C)		28.43	%		25.95	%		3.87	%		13.72	%		(13.81	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	60,744		$	43,611		$	905		$	698		$	685		$	453
Ratio to average net assets:
Net expenses		1.22	%(D)		1.21	%		1.21	%		1.21	%		1.21	%		1.15	%
Gross expenses		1.37	%(D)		1.50	%		3.50	%		3.05	%		2.84	%		3.84	%
Net investment income (loss)		0.26	%(D)		0.61	%		0.66	%		(0.02	%)		0.34	%		0.39	%
Portfolio turnover rate		11	%(C)		20	%		152	%		97	%		132	%		187	%

Touchstone Mid Cap Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	20.37		$	16.21		$	12.96		$	12.58		$	11.19		$	13.12
Income (loss) from investment operations:
Net investment loss		(0.05	)		(0.03	)(A)		(0.01	)(A)		(0.07	)		(0.04	)		(0.03	)
Net realized and unrealized gains (losses) on investments		2.09			4.42			3.26			0.45			1.43			(1.87	)
Total from investment operations		2.04			4.39			3.25			0.38			1.39			(1.90	)
Distributions from:
Net investment income		—			(0.23	)		—			—			—			—
Realized capital gains		—			—			—			—			—			(0.03	)
Total distributions		—			(0.23	)		—			—			—			(0.03	)
Net asset value at end of period	$	22.41		$	20.37		$	16.21		$	12.96		$	12.58		$	11.19
Total return(B)		10.02	%(C)		27.43	%		25.08	%		3.02	%		12.42	%		(14.47	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	38,214		$	25,018		$	962		$	476		$	249		$	169
Ratio to average net assets:
Net expenses		1.97	%(D)		1.96	%		1.96	%		1.96	%		1.94	%		1.90	%
Gross expenses		2.13	%(D)		2.37	%		4.62	%		4.95	%		4.57	%		6.99	%
Net investment loss		(0.49	%)(D)		(0.14	%)		(0.09	%)		(0.80	%)		(0.40	%)		(0.38	%)
Portfolio turnover rate		11	%(C)		20	%		152	%		97	%		132	%		187	%

(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.

See accompanying Notes to Financial Statements.

88

Financial Highlights (Continued)

Touchstone Mid Cap Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	20.98		$	16.60		$	13.17		$	12.68		$	11.25		$	13.14
Income (loss) from investment operations:
Net investment income		0.05			0.17	(A)		0.15	(A)		0.05			0.08			0.07
Net realized and unrealized gains (losses) on investments		2.16			4.53			3.31			0.47			1.44			(1.88	)
Total from investment operations		2.21			4.70			3.46			0.52			1.52			(1.81	)
Distributions from:
Net investment income		(0.05	)		(0.32	)		(0.03	)		(0.03	)		(0.09	)		(0.05	)
Realized capital gains		—			—			—			—			—			(0.03	)
Total distributions		(0.05	)		(0.32	)		(0.03	)		(0.03	)		(0.09	)		(0.08	)
Net asset value at end of period	$	23.14		$	20.98		$	16.60		$	13.17		$	12.68		$	11.25
Total return		10.54	%(B)		28.78	%		26.29	%		4.10	%		13.58	%		(13.68	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	237,488		$	181,276		$	47,419		$	77,785		$	123,493		$	168,313
Ratio to average net assets:
Net expenses		0.96	%(C)		0.95	%		0.92	%		0.96	%		0.94	%		0.90	%
Gross expenses		1.04	%(C)		1.09	%		1.08	%		1.06	%		1.07	%		1.05	%
Net investment income		0.52	%(C)		0.87	%		0.95	%		0.26	%		0.71	%		0.61	%
Portfolio turnover rate		11	%(B)		20	%		152	%		97	%		132	%		187	%

Touchstone Mid Cap Fund—Class Z

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	20.73		$	16.45		$	13.08		$	12.59		$	11.18		$	13.05
Income (loss) from investment operations:
Net investment income (loss)		0.03			0.12	(A)		0.10	(A)		(—)	(D)		0.02			0.03
Net realized and unrealized gains (losses) on investments		2.13			4.48			3.28			0.49			1.45			(1.84	)
Total from investment operations		2.16			4.60			3.38			0.49			1.47			(1.81	)
Distributions from:
Net investment income		(0.01	)		(0.32	)		(0.01	)		—			(0.06	)		(0.03	)
Realized capital gains		—			—			—			—			—			(0.03	)
Total distributions		(0.01	)		(0.32	)		(0.01	)		—			(0.06	)		(0.06	)
Net asset value at end of period	$	22.88		$	20.73		$	16.45		$	13.08		$	12.59		$	11.18
Total return		10.40	%(B)		28.45	%		25.89	%		3.89	%		13.20	%		(13.83	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	15,889		$	12,858		$	267		$	934		$	652		$	1,814
Ratio to average net assets:
Net expenses		1.22	%(C)		1.21	%		1.21	%		1.21	%		1.19	%		1.15	%
Gross expenses		1.46	%(C)		1.55	%		3.67	%		3.68	%		2.14	%		2.22	%
Net investment income (loss)		0.26	%(C)		0.61	%		0.66	%		(0.09	%)		0.45	%		0.39	%
Portfolio turnover rate		11	%(B)		20	%		152	%		97	%		132	%		187	%

(A)	The net investment income per share is based on average shares outstanding for the period.
(B)	Not annualized.
(C)	Annualized.
(D)	Less than $0.005 per share.

See accompanying Notes to Financial Statements.

89

Financial Highlights (Continued)

Touchstone Mid Cap Fund—Institutional Class

Selected Data for a Share Outstanding Throughout The Period

	Six Months			Year			Period
	Ended			Ended			Ended
	March 31,			September			September
	2014			30,			30,
	(Unaudited)			2013			2012(A)
Net asset value at beginning of period	$	20.99		$	16.61		$	15.36
Income from investment operations:
Net investment income		0.06			0.19	(B)		0.10	(B)
Net realized and unrealized gains on investments		2.16			4.52			1.15
Total from investment operations		2.22			4.71			1.25
Distributions from:
Net investment income		(0.06	)		(0.33	)		—
Net asset value at end of period	$	23.15		$	20.99		$	16.61
Total return		10.57	%(C)		28.85	%		8.14	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	86,310		$	74,170		$	12,231
Ratio to average net assets:
Net expenses		0.90	%(D)		0.89	%		0.89	%(D)
Gross expenses		1.00	%(D)		1.07	%		1.38	%(D)
Net investment income		0.58	%(D)		0.93	%		0.98	%(D)
Portfolio turnover rate		11	%(C)		20	%		152	%

(A)	Represents the period from commencement of operations (January 27, 2012) through September 30, 2012.
(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.

90

Financial Highlights (Continued)

Touchstone Mid Cap Value Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	16.09		$	12.98		$	10.86		$	11.76		$	10.00
Income (loss) from investment operations:
Net investment income		0.02			0.10			0.09			0.09			0.12
Net realized and unrealized gains (losses) on investments		1.68			3.26			2.78			(0.72	)		1.74
Total from investment operations		1.70			3.36			2.87			(0.63	)		1.86
Distributions from:
Net investment income		(0.03	)		(0.10	)		(0.09	)		(0.11	)		(0.10	)
Realized capital gains		(1.34	)		(0.15	)		(0.66	)		(0.16	)		—
Total distributions		(1.37	)		(0.25	)		(0.75	)		(0.27	)		(0.10	)
Net asset value at end of period	$	16.42		$	16.09		$	12.98		$	10.86		$	11.76
Total return(B)		11.13	%(C)		26.26	%		27.55	%		(5.72	%)		18.70	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	20,028		$	5,307		$	3,409		$	2,364		$	345
Ratio to average net assets:
Net expenses		1.29	%(D)		1.29	%		1.29	%		1.29	%		1.29	%
Gross expenses		1.64	%(D)		1.75	%		1.97	%		2.07	%		3.07	%
Net investment income		0.51	%(D)		0.73	%		0.77	%		0.86	%		1.07	%
Portfolio turnover rate		28	%(C)(E)		68	%		42	%		59	%		45	%

Touchstone Mid Cap Value Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	16.00		$	12.92		$	10.82		$	11.74		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.01	)		(—)	(F)		—	(F)		0.03			0.03
Net realized and unrealized gains (losses) on investments		1.63			3.24			2.77			(0.75	)		1.75
Total from investment operations		1.62			3.24			2.77			(0.72	)		1.78
Distributions from:
Net investment income (loss)		—			(0.01	)		(0.01	)		(0.04	)		(0.04	)
Realized capital gains		(1.34	)		(0.15	)		(0.66	)		(0.16	)		—
Total distributions		(1.34	)		(0.16	)		(0.67	)		(0.20	)		(0.04	)
Net asset value at end of period	$	16.28		$	16.00		$	12.92		$	10.82		$	11.74
Total return(B)		10.66	%(C)		25.32	%		26.64	%		(6.45	%)		17.88	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	2,249		$	719		$	292		$	204		$	132
Ratio to average net assets:
Net expenses		2.04	%(D)		2.04	%		2.04	%		2.04	%		2.04	%
Gross expenses		3.38	%(D)		4.17	%		7.90	%		7.74	%		3.86	%
Net investment income (loss)		(0.24	%)(D)		(0.02	%)		0.02	%		0.10	%		0.27	%
Portfolio turnover rate		28	%(C)(E)		68	%		42	%		59	%		45	%

(A)	Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.
(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 Touchstone Mid Cap Value Opportunities Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.
(F)	Less than $0.005 per share.

See accompanying Notes to Financial Statements.

91

Financial Highlights (Continued)

Touchstone Mid Cap Value Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31, 2014			Year Ended September 30,
		(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	16.15		$	13.03		$	10.89		$	11.79		$	10.00
Income (loss) from investment operations:
Net investment income		0.02			0.15			0.11			0.12			0.14
Net realized and unrealized gains (losses) on investments		1.70			3.26			2.81			(0.72	)		1.76
Total from investment operations		1.72			3.41			2.92			(0.60	)		1.90
Distributions from:
Net investment income		(0.04	)		(0.14	)		(0.12	)		(0.14	)		(0.11	)
Realized capital gains		(1.34	)		(0.15	)		(0.66	)		(0.16	)		—
Total distributions		(1.38	)		(0.29	)		(0.78	)		(0.30	)		(0.11	)
Net asset value at end of period	$	16.49		$	16.15		$	13.03		$	10.89		$	11.79
Total return		11.24	%(B)		26.53	%		27.97	%		(5.51	%)		19.07	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	128,958		$	15,782		$	13,785		$	4,685		$	589
Ratio to average net assets:
Net expenses		1.04	%(C)		1.04	%		1.04	%		1.04	%		1.04	%
Gross expenses		1.19	%(C)		1.37	%		1.46	%		1.58	%		3.19	%
Net investment income		0.76	%(C)		0.98	%		1.02	%		1.20	%		1.40	%
Portfolio turnover rate		28	%(B)(D)		68	%		42	%		59	%		45	%

Touchstone Mid Cap Value Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31, 2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	16.20		$	13.07		$	10.92		$	11.83		$	10.00
Income (loss) from investment operations:
Net investment income		0.07			0.16			0.13			0.16			0.10
Net realized and unrealized gains (losses) on investments		1.67			3.28			2.82			(0.75	)		1.82
Total from investment operations		1.74			3.44			2.95			(0.59	)		1.92
Distributions from:
Net investment income		(0.05	)		(0.16	)		(0.14	)		(0.16	)		(0.09	)
Realized capital gains		(1.34	)		(0.15	)		(0.66	)		(0.16	)		—
Total distributions		(1.39	)		(0.31	)		(0.80	)		(0.32	)		(0.09	)
Net asset value at end of period	$	16.55		$	16.20		$	13.07		$	10.92		$	11.83
Total return		11.32	%(B)		26.71	%		28.17	%		(5.41	%)		19.25	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	130,403		$	144,965		$	75,240		$	39,808		$	39,509
Ratio to average net assets:
Net expenses		0.89	%(C)		0.89	%		0.89	%		0.89	%		0.89	%
Gross expenses		1.04	%(C)		1.09	%		1.12	%		1.15	%		1.93	%
Net investment income		0.91	%(C)		1.13	%		1.17	%		1.21	%		1.66	%
Portfolio turnover rate		28	%(B)(D)		68	%		42	%		59	%		45	%

(A)	Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.
(B)	Not annualized.
(C)	Annualized.
(D)	Portfolio turnover excludes the purchases and sales of the Touchstone Mid Cap Value Opportunities Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

92

Financial Highlights (Continued)

Touchstone Premium Yield Equity Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31, 2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	8.92		$	8.11		$	6.76		$	6.48		$	5.93		$	7.56
Income (loss) from investment operations:
Net investment income		0.30	(A)		0.24			0.24			0.21			0.21			0.22
Net realized and unrealized gains (losses) on investments		0.47			0.80			1.36			0.28			0.54			(1.64	)
Total from investment operations		0.77			1.04			1.60			0.49			0.75			(1.42	)
Distributions from:
Net investment income		(0.29	)		(0.23	)		(0.24	)		(0.21	)		(0.20	)		(0.21	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.29	)		(0.23	)		(0.25	)		(0.21	)		(0.20	)		(0.21	)
Net asset value at end of period	$	9.40		$	8.92		$	8.11		$	6.76		$	6.48		$	5.93
Total return(B)		8.70	%(C)		12.97	%		23.98	%		7.43	%		12.82	%		(18.40	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	64,442		$	86,171		$	68,780		$	28,739		$	22,441		$	19,879
Ratio to average net assets:
Net expenses		1.20	%(D)		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Gross expenses		1.30	%(D)		1.29	%		1.30	%		1.35	%		1.40	%		1.55	%
Net investment income		6.33	%(A)(D)		2.74	%		3.26	%		3.02	%		3.30	%		3.97	%
Portfolio turnover rate		16	%(C)		56	%		16	%		54	%		29	%		30	%

Touchstone Premium Yield Equity Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31, 2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	8.90		$	8.10		$	6.76		$	6.49		$	5.93		$	7.56
Income (loss) from investment operations:
Net investment income		0.26	(A)		0.16			0.18			0.16			0.16			0.10
Net realized and unrealized gains (losses) on investments		0.49			0.80			1.35			0.27			0.55			(1.55	)
Total from investment operations		0.75			0.96			1.53			0.43			0.71			(1.45	)
Distributions from:
Net investment income		(0.25	)		(0.16	)		(0.18	)		(0.16	)		(0.15	)		(0.18	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.25	)		(0.16	)		(0.19	)		(0.16	)		(0.15	)		(0.18	)
Net asset value at end of period	$	9.40		$	8.90		$	8.10		$	6.76		$	6.49		$	5.93
Total return(B)		8.44	%(C)		12.03	%		22.93	%		6.60	%		12.11	%		(18.96	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	25,680		$	24,009		$	15,680		$	7,499		$	6,870		$	3,319
Ratio to average net assets:
Net expenses		1.95	%(D)		1.95	%		1.95	%		1.95	%		1.95	%		1.95	%
Gross expenses		2.03	%(D)		2.08	%		2.14	%		2.28	%		2.23	%		3.08	%
Net investment income		5.58	%(A)(D)		1.99	%		2.51	%		2.27	%		2.60	%		2.80	%
Portfolio turnover rate		16	%(C)		56	%		16	%		54	%		29	%		30	%

(A)	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 A and Class C net investment income per share and ratio of net investment income to average net assets would have been lower by $0.16 and 3.57%, respectively.
(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.

93

Financial Highlights (Continued)

Touchstone Premium Yield Equity Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	8.90		$	8.10		$	6.75		$	6.47		$	5.92		$	7.55
Income (loss) from investment operations:
Net investment income		0.31	(A)		0.25			0.27			0.20			0.22			0.22
Net realized and unrealized gains (losses) on investments		0.48			0.80			1.35			0.30			0.54			(1.62	)
Total from investment operations		0.79			1.05			1.62			0.50			0.76			(1.40	)
Distributions from:
Net investment income		(0.30	)		(0.25	)		(0.26	)		(0.22	)		(0.21	)		(0.23	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.30	)		(0.25	)		(0.27	)		(0.22	)		(0.21	)		(0.23	)
Net asset value at end of period	$	9.39		$	8.90		$	8.10		$	6.75		$	6.47		$	5.92
Total return		8.96	%(B)		13.14	%		24.31	%		7.67	%		13.14	%		(18.22	%)
Ratios and supplemental data:
Net assets at end of period (000's)	$	67,461		$	66,644		$	33,185		$	3,980		$	11,540		$	551
Ratio to average net assets:
Net expenses		0.95	%(C)		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Gross expenses		0.97	%(C)		1.04	%		1.18	%		1.25	%		1.53	%		13.70	%
Net investment income		6.58	%(A)(C)		2.99	%		3.51	%		3.16	%		3.77	%		2.97	%
Portfolio turnover rate		16	%(B)		56	%		16	%		54	%		29	%		30	%

(A)	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 $0.16 and 3.57%, respectively.
(B)	Not annualized.
(C)	Annualized.

See accompanying Notes to Financial Statements.

94

Financial Highlights (Continued)

Touchstone Sands Capital Select Growth Fund—Class A

Selected Data for a Share Outstanding

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	16.08		$	12.65		$	9.39		$	9.39
Income (loss) from investment operations:
Net investment loss		(0.09	)		(0.05	)		(0.09	)(B)		(0.03	)
Net realized and unrealized gains on investments		1.68			3.48			3.35			0.03
Total from investment operations		1.59			3.43			3.26			—
Distributions from:
Realized capital gains		(0.13	)		—			—			—
Net asset value at end of period	$	17.54		$	16.08		$	12.65		$	9.39
Total return(C)		9.91	%(D)		27.11	%		34.72	%		0.00	%(D)
Ratios and supplemental data:
Net assets at end of period (000's)	$	460,787		$	416,396		$	186,384		$	21,211
Ratio to average net assets:
Net expenses		1.36	%(E)		1.28	%		1.37	%		1.45	%(E)
Gross expenses		1.39	%(E)		1.37	%		1.47	%		1.64	%(E)
Net investment loss		(1.07	%)(E)		(0.62	%)		(0.74	%)		(0.94	%)(E)
Portfolio turnover rate		15	%(D)		37	%		19	%		19	%(D)

Touchstone Sands Capital Select Growth Fund—Class C

Selected Data for a Share Outstanding

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	15.74		$	12.47		$	9.33		$	9.39
Income (loss) from investment operations:
Net investment loss		(0.15	)		(0.13	)		(0.17	)(B)		(0.06	)
Net realized and unrealized gains on investments		1.64			3.40			3.31			—	(F)
Total from investment operations		1.49			3.27			3.14			(0.06	)
Distributions from:
Realized capital gains		(0.13	)		—			—			—
Net asset value at end of period	$	17.10		$	15.74		$	12.47		$	9.33
Total return(C)		9.56	%(D)		26.14	%		33.66	%		(0.64	%)(D)
Ratios and supplemental data:
Net assets at end of period (000's)	$	214,907		$	198,584		$	88,931		$	8,660
Ratio to average net assets:
Net expenses		2.11	%(E)		2.03	%		2.12	%		2.20	%(E)
Gross expenses		2.14	%(E)		2.14	%		2.22	%		2.56	%(E)
Net investment loss		(1.82	%)(E)		(1.37	%)		(1.49	%)		(1.69	%)(E)
Portfolio turnover rate		15	%(D)		37	%		19	%		19	%(D)

(A)	Represents the period from commencement of operations (November 15, 2010) through September 30, 2011.
(B)	The net investment loss 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)	Less than $0.005 per share.

See accompanying Notes to Financial Statements.

95

Financial Highlights (Continued)

Touchstone Sands Capital Select Growth Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014						Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	16.44		$	12.90		$	9.56		$	8.83		$	7.34		$	6.86
Income (loss) from investment operations:
Net investment loss		(0.06	)		(0.02	)		(0.06	)(A)		(0.14	)		(0.07	)		(0.03	)
Net realized and unrealized gains on investments		1.71			3.56			3.40			0.87			1.56			0.51
Total from investment operations		1.65			3.54			3.34			0.73			1.49			0.48
Distributions from:
Realized capital gains		(0.13	)		—			—			—			—			—
Net asset value at end of period	$	17.96		$	16.44		$	12.90		$	9.56		$	8.83		$	7.34
Total return		10.06	%(B)		27.44	%		34.94	%		8.14	%		20.44	%		7.00	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	3,170,523		$	2,684,731		$	1,215,124		$	392,464		$	120,333		$	82,918
Ratio to average net assets:
Net expenses		1.11	%(C)		1.03	%		1.11	%		1.20	%		1.22	%		0.98	%
Gross expenses		1.09	%(C)		1.06	%		1.18	%		1.23	%		1.28	%		1.05	%
Net investment loss		(0.82	%)(C)		(0.37	%)		(0.49	%)		(0.68	%)		(0.52	%)		(0.48	%)
Portfolio turnover rate		15	%(B)		37	%		19	%		19	%		27	%		50	%

Touchstone Sands Capital Select Growth Fund—Class Z

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010			2009
Net asset value at beginning of period	$	16.08		$	12.65		$	9.39		$	8.70		$	7.24		$	6.79
Income (loss) from investment operations:
Net investment loss		(0.09	)		(0.10	)		(0.08	)(A)		(0.07	)		(0.04	)		(0.04	)
Net realized and unrealized gains on investments		1.68			3.53			3.34			0.76			1.50			0.49
Total from investment operations		1.59			3.43			3.26			0.69			1.46			0.45
Distributions from:
Realized capital gains		(0.13	)		—			—			—			—			—
Net asset value at end of period	$	17.54		$	16.08		$	12.65		$	9.39		$	8.70		$	7.24
Total return		9.91	%(B)		27.11	%		34.72	%		7.93	%		20.17	%		6.63	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	2,360,691		$	2,140,884		$	1,836,957		$	911,849		$	540,329		$	333,200
Ratio to average net assets:
Net expenses		1.36	%(C)		1.28	%		1.32	%		1.42	%		1.47	%		1.23	%
Gross expenses		1.39	%(C)		1.37	%		1.39	%		1.52	%		1.53	%		1.32	%
Net investment loss		(1.06	%)(C)		(0.62	%)		(0.70	%)		(0.93	%)		(0.79	%)		(0.74	%)
Portfolio turnover rate		15	%(B)		37	%		19	%		19	%		27	%		50	%

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

^(B) Not annualized.

^(C) Annualized.

See accompanying Notes to Financial Statements.

96

Financial Highlights (Continued)

Touchstone Small Cap Core Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	19.44		$	16.02		$	11.94		$	11.62		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.06	)		0.44			0.05			(0.02	)		0.02
Net realized and unrealized gains on investments		2.20			3.28			4.20			0.35			1.60
Total from investment operations		2.14			3.72			4.25			0.33			1.62
Distributions from:
Net investment income		(0.31	)		(0.18	)		(—)	(B)		(0.01	)		—
Realized capital gains		(0.29	)		(0.12	)		(0.17	)		(—)	(B)		—
Total distributions		(0.60	)		(0.30	)		(0.17	)		(0.01	)		—
Net asset value at end of period	$	20.98		$	19.44		$	16.02		$	11.94		$	11.62
Total return(C)		11.07	%(D)		23.60	%		35.86	%		2.82	%		16.20	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	135,471		$	122,394		$	84,539		$	43,074		$	50,110
Ratio to average net assets:
Net expenses		1.35	%(E)		1.34	%		1.34	%		1.34	%		1.34	%
Gross expenses		1.45	%(E)		1.53	%		1.58	%		1.79	%		1.55	%
Net investment income (loss)		(0.57	%)(E)		2.47	%		0.37	%		(0.10	%)		0.32	%
Portfolio turnover rate		10	%(D)		15	%		11	%		37	%		29	%

Touchstone Small Cap Core Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	19.01		$	15.69		$	11.79		$	11.55		$	10.00
Income (loss) from investment operations:
Net investment income (loss)		(0.14	)		0.30			(0.01	)		(0.08	)		(0.02	)
Net realized and unrealized gains on investments		2.16			3.22			4.08			0.32			1.57
Total from investment operations		2.02			3.52			4.07			0.24			1.55
Distributions from:
Net investment income		(0.16	)		(0.08	)		(—)	(B)		(—)	(B)		—
Realized capital gains		(0.29	)		(0.12	)		(0.17	)		(—)	(B)		—
Total distributions		(0.45	)		(0.20	)		(0.17	)		(—)	(B)		—
Net asset value at end of period	$	20.58		$	19.01		$	15.69		$	11.79		$	11.55
Total return(C)		10.71	%(D)		22.69	%		34.78	%		2.08	%		15.50	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	29,910		$	28,685		$	24,278		$	11,739		$	5,245
Ratio to average net assets:
Net expenses		2.10	%(E)		2.09	%		2.09	%		2.09	%		2.09	%
Gross expenses		2.18	%(E)		2.24	%		2.30	%		2.51	%		2.57	%
Net investment income (loss)		(1.32	%)(E)		1.72	%		(0.38	%)		(0.80	%)		(0.43	%)
Portfolio turnover rate		10	%(D)		15	%		11	%		37	%		29	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(B) Less than $0.005 per share.

^(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.

See accompanying Notes to Financial Statements.

97

Financial Highlights (Continued)

Touchstone Small Cap Core Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	19.59		$	16.13		$	12.00		$	11.67		$	10.00
Income from investment operations:
Net investment income (loss)		(0.01	)		0.46			0.07			0.02			0.03
Net realized and unrealized gains on investments		2.20			3.34			4.24			0.34			1.64
Total from investment operations		2.19			3.80			4.31			0.36			1.67
Distributions from:
Net investment income (loss)		(0.36	)		(0.22	)		(0.01	)		(0.03	)		—
Realized capital gains		(0.29	)		(0.12	)		(0.17	)		(—)	(B)		—
Total distributions		(0.65	)		(0.34	)		(0.18	)		(0.03	)		—
Net asset value at end of period	$	21.13		$	19.59		$	16.13		$	12.00		$	11.67
Total return		11.28	%(C)		24.01	%		36.23	%		3.05	%		16.70	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	281,177		$	258,024		$	168,987		$	58,164		$	33,536
Ratio to average net assets:
Net expenses		1.03	%(D)		1.03	%		1.04	%		1.09	%		1.09	%
Gross expenses		1.09	%(D)		1.14	%		1.17	%		1.21	%		1.31	%
Net investment income (loss)		(0.24	%)(D)		2.78	%		0.66	%		0.21	%		0.61	%
Portfolio turnover rate		10	%(C)		15	%		11	%		37	%		29	%

Touchstone Small Cap Core Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014						Year Ended September 30,
	(Unaudited)			2013			2012			2011			2010(A)
Net asset value at beginning of period	$	19.57		$	16.11		$	11.99		$	11.65		$	10.00
Income from investment operations:
Net investment income (loss)		(0.03	)		0.49			0.06			0.03			0.06
Net realized and unrealized gains on investments		2.23			3.32			4.26			0.35			1.61
Total from investment operations		2.20			3.81			4.32			0.38			1.67
Distributions from:
Net investment income (loss)		(0.38	)		(0.23	)		(0.03	)		(0.04	)		(0.02	)
Realized capital gains		(0.29	)		(0.12	)		(0.17	)		(—)	(B)		—
Total distributions		(0.67	)		(0.35	)		(0.20	)		(0.04	)		(0.02	)
Net asset value at end of period	$	21.10		$	19.57		$	16.11		$	11.99		$	11.65
Total return		11.33	%(C)		24.13	%		36.32	%		3.24	%		16.74	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	460,958		$	395,770		$	247,876		$	43,035		$	10,386
Ratio to average net assets:
Net expenses		0.98	%(D)		0.94	%		0.94	%		0.94	%		0.94	%
Gross expenses		1.04	%(D)		1.07	%		1.09	%		1.16	%		1.32	%
Net investment income (loss)		(0.19	%)(D)		2.87	%		0.77	%		0.36	%		0.66	%
Portfolio turnover rate		10	%(C)		15	%		11	%		37	%		29	%

^(A) Represents the period from commencement of operations (October 1, 2009) through September 30, 2010.

^(B) Less than $0.005 per share.

^(C) Not annualized.

^(D) Annualized.

See accompanying Notes to Financial Statements.

98

Financial Highlights (Continued)

Touchstone Small Cap Value Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)(B)
Net asset value at beginning of period	$	22.79		$	18.33		$	13.85		$	17.36
Income (loss) from investment operations:
Net investment income		0.18	(C)		0.41			0.21	(C)		0.22
Net realized and unrealized gains (losses) on investments		2.38			4.45			4.60			(3.57	)
Total from investment operations		2.56			4.86			4.81			(3.35	)
Distributions from:
Net investment income		(0.14	)		(0.40	)		(0.33	)		(0.16	)
Net asset value at end of period	$	25.21		$	22.79		$	18.33		$	13.85
Total return(D)		11.24	%(E)		26.82	%		34.87	%		(19.37	%)(E)
Ratios and supplemental data:
Net assets at end of period (000's)	$	40,509		$	34,826		$	32,115		$	37,385
Ratio to average net assets:
Net expenses		1.43	%(F)		1.43	%		1.43	%		1.43	%(F)
Gross expenses		1.71	%(F)		1.78	%		1.77	%		1.72	%(F)
Net investment income		1.55	%(F)		1.98	%		1.26	%		1.97	%(F)
Portfolio turnover rate		47	%(E)(G)(H)		98	%		109	%		206	%(E)

Touchstone Small Cap Value Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	22.61		$	18.23		$	13.82		$	17.36
Income (loss) from investment operations:
Net investment income		0.09	(C)		0.29			0.09	(C)		0.09
Net realized and unrealized gains (losses) on investments		2.36			4.39			4.58			(3.50	)
Total from investment operations		2.45			4.68			4.67			(3.41	)
Distributions from:
Net investment income		(0.08	)		(0.30	)		(0.26	)		(0.13	)
Net asset value at end of period	$	24.98		$	22.61		$	18.23		$	13.82
Total return(D)		10.84	%(E)		25.90	%		33.95	%		(19.77	%)(E)
Ratios and supplemental data:
Net assets at end of period (000's)	$	2,238		$	841		$	104		$	2
Ratio to average net assets:
Net expenses		2.18	%(F)		2.18	%		2.18	%		2.18	%(F)
Gross expenses		3.60	%(F)		5.19	%		28.35	%		342.41	%(F)
Net investment income		0.80	%(F)		1.23	%		0.51	%		0.95	%(F)
Portfolio turnover rate		47	%(E)(G)(H)		98	%		109	%		206	%(E)

^(A) Represents the period from commencement of operations (March 1, 2011) through September 30, 2011.

^(B) Effective June 10, 2011, Class Z shares converted to Class A shares.

^(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) Annualized.

^(G) Portfolio turnover rate excludes securities received from a subscription-in-kind.

^(H) Portfolio turnover excludes the purchases and sales of the Touchstone Small Company Value Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

99

Financial Highlights (Continued)

Touchstone Small Cap Value Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	22.82		$	18.36		$	13.89		$	17.36
Income (loss) from investment operations:
Net investment income		0.22	(B)		0.48			0.26	(B)		0.71
Net realized and unrealized gains (losses) on investments		2.36			4.44			4.59			(4.00	)
Total from investment operations		2.58			4.92			4.85			(3.29	)
Distributions from:
Net investment income		(0.17	)		(0.46	)		(0.38	)		(0.18	)
Net asset value at end of period	$	25.23		$	22.82		$	18.36		$	13.89
Total return		11.38	%(C)		27.11	%		35.19	%		(19.10	%)(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	7,639		$	769		$	222		$	2
Ratio to average net assets:
Net expenses		1.18	%(D)		1.18	%		1.18	%		1.18	%(D)
Gross expenses		2.26	%(D)		3.45	%		22.47	%		70.29	%(D)
Net investment income		1.80	%(D)		2.23	%		1.51	%		2.05	%(D)
Portfolio turnover rate		47	%(C)(E)		98	%		109	%		206	%(C)

Touchstone Small Cap Value Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	22.81		$	18.35		$	13.86		$	17.36
Income (loss) from investment operations:
Net investment income		0.23	(B)		0.48			0.29	(B)		0.20
Net realized and unrealized gains (losses) on investments		2.37			4.47			4.60			(3.51	)
Total from investment operations		2.60			4.95			4.89			(3.31	)
Distributions from:
Net investment income		(0.18	)		(0.49	)		(0.40	)		(0.19	)
Net asset value at end of period	$	25.23		$	22.81		$	18.35		$	13.86
Total return		11.43	%(C)		27.30	%		35.56	%		(19.23	%)(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	33,799		$	2,665		$	1,160		$	741
Ratio to average net assets:
Net expenses		1.03	%(D)		1.03	%		1.03	%		1.03	%(D)
Gross expenses		1.47	%(D)		1.83	%		1.87	%		3.59	%(D)
Net investment income		1.95	%(D)		2.38	%		1.66	%		2.12	%(D)
Portfolio turnover rate		47	%(C)(E)(F)		98	%		109	%		206	%(C)

^(A) Represents the period from commencement of operations (March 1, 2011) through September 30, 2011.

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

^(C) Not annualized.

^(D) Annualized.

^(E) Portfolio turnover rate excludes securities received from a subscription-in-kind.

^(F) Portfolio turnover excludes the purchases and sales of the Touchstone Small Company Value Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

100

Financial Highlights (Continued)

Touchstone Total Return Bond Fund—Class A†

Selected Data for a Share Outstanding Throughout Each Period††

	Six Months									Period
	Ended									Ended			Period
	March 31,			Year Ended						September			Ended
	2014			September 30,						30,			March 31,
	(Unaudited)			2013			2012			2011(A)			2011 (B)
Net asset value at beginning of period	$	10.07		$	10.50		$	10.13		$	9.90		$	10.15
Income (loss) from investment operations:
Net investment income		0.16			0.21			0.23			0.24			0.28
Net realized and unrealized gains (losses) on investments		0.06			(0.36	)		0.41			0.24			(0.14	)(C)
Total from investment operations		0.22			(0.15	)		0.64			0.48			0.14
Distributions from:
Net investment income		(0.15	)		(0.27	)		(0.27	)		(0.25	)		(0.39	)
Realized capital gains		—			(0.01	)		—			—			—
Total distributions		(0.15	)		(0.28	)		(0.27	)		(0.25	)		(0.39	)
Net asset value at end of period	$	10.14		$	10.07		$	10.50		$	10.13		$	9.90
Total return(D)		2.15	%(E)		(1.48	%)		6.42	%		5.02	%(E)		1.31	%(E)(F)
Ratios and supplemental data:
Net assets at end of period (000's)	$	6,743		$	12,167		$	10,210		$	4,737		$	7
Ratio to average net assets:
Net expenses		0.90	%(G)		0.90	%		0.90	%		0.90	%(G)		0.65	%(G)
Gross expenses		1.19	%(G)		1.10	%		1.22	%		1.69	%(G)		1.75	%(G)
Net investment income		2.86	%(G)		2.07	%		2.26	%		4.40	%(G)		4.16	%(G)
Portfolio turnover rate		1	%(E)		35	%		79	%(H)		7	%(E)		27	%(E)

^† Touchstone Total Return Bond Fund acquired all of the assets and liabilities of EARNEST Partners Fixed Income Trust (“Predecessor Fund”) in a reorganization on August 1, 2011. The Predecessor Fund's performance and financial history have been adopted by Touchstone Total Return Bond and will be used going forward. As a result, the information prior to August 1, 2011 reflects that of the Predecessor Fund.

^†† Per share data prior to August 1, 2011, reflects a 1.01491:1 stock split. All per share amounts prior to that date have been adjusted to reflect the stock split.

^(A) Effective August 1, 2011, the Fund changed its fiscal year end from March 31 to September 30 and Investor Class shares were renamed Class A shares.

^(B) Represents the period from commencement of operations (August 16, 2010) through March 31, 2011.

^(C) This amount per share is a loss for the Class A shares because of the short time period since the Commencement of Operations on August 16, 2010 relative to the full fiscal year in which the Class Y shares were in operation. The loss during this period is offset by the gain in the Class Y shares during the full fiscal year to create a gain in the Net Realized and Unrealized Gain on Investments in the other classes.

^(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) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions.

^(G) Annualized.

^(H) Portfolio turnover excludes the purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

101

Financial Highlights (Continued)

Touchstone Total Return Bond Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	10.05		$	10.49		$	10.12		$	10.04
Income (loss) from investment operations:
Net investment income		0.11			0.11			0.14			0.06
Net realized and unrealized gains (losses) on investments		0.07			(0.35	)		0.42			0.09
Total from investment operations		0.18			(0.24	)		0.56			0.15
Distributions from:
Net investment income		(0.11	)		(0.19	)		(0.19	)		(0.07	)
Realized capital gains		—			(0.01	)		—			—
Total distributions		(0.11	)		(0.20	)		(0.19	)		(0.07	)
Net asset value at end of period	$	10.12		$	10.05		$	10.49		$	10.12
Total return(B)		1.77	%(C)		(2.33	%)		5.63	%		1.51	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	1,840		$	2,455		$	3,257		$	2,587
Ratio to average net assets:
Net expenses		1.65	%(D)		1.65	%		1.65	%		1.65	%(D)
Gross expenses		2.35	%(D)		2.10	%		2.03	%		2.55	%(D)
Net investment income		2.11	%(D)		1.32	%		1.51	%		3.75	%(D)
Portfolio turnover rate		1	%(C)		35	%		79	%(E)		7	%(C)

^(A) Represents the period from commencement of operations (August 1, 2011) through September 30, 2011.

^(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 Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

102

Financial Highlights (Continued)

Touchstone Total Return Bond Fund—Class Y†

Selected Data for a Share Outstanding Throughout Each Period††

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September			Year Ended
	2014			September 30,						30,			March 31,
	(Unaudited)			2013			2012			2011(A)			2011			2010			2009
Net asset value at beginning of period	$	10.08		$	10.52		$	10.15		$	9.86		$	9.66		$	8.48		$	9.20
Income (loss) from investment operations:
Net investment income		0.16			0.23			0.25			0.24			0.45			0.48			0.48
Net realized and unrealized gains (losses) on investments		0.07			(0.36	)		0.42			0.30			0.21			1.21			(0.73	)
Total from investment operations		0.23			(0.13	)		0.67			0.54			0.66			1.69			(0.25	)
Distributions from:
Net investment income		(0.16	)		(0.30	)		(0.30	)		(0.25	)		(0.46	)		(0.51	)		(0.47	)
Realized capital gains		—			(0.01	)		—			—			—			—			—
Total distributions		(0.16	)		(0.31	)		(0.30	)		(0.25	)		(0.46	)		(0.51	)		(0.47	)
Net asset value at end of period	$	10.15		$	10.08		$	10.52		$	10.15		$	9.86		$	9.66		$	8.48
Total return		2.31	%(B)		(1.32	%)		6.72	%		5.29	%(B)		6.97	%(C)		20.28	%(C)		(2.79	%)(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	19,322		$	19,635		$	29,716		$	17,810		$	16,512		$	16,877		$	13,075
Ratio to average net assets:
Net expenses		0.62	%(D)		0.62	%		0.58	%		0.48	%(D)		0.40	%		0.40	%		0.40	%
Gross expenses		0.68	%(D)		0.71	%		0.70	%		1.13	%(D)		1.62	%		1.56	%		1.14	%
Net investment income		3.14	%(D)		2.34	%		2.59	%		4.35	%(D)		4.46	%		5.10	%		5.23	%
Portfolio turnover rate		1	%(B)		35	%		79	%(E)		7	%(B)		27	%		29	%		24	%

† Touchstone Total Return Bond Fund acquired all of the assets and liabilities of EARNEST Partners Fixed Income Trust (“Predecessor Fund”) in a reorganization on August 1, 2011. The Predecessor Fund's performance and financial history have been adopted by Touchstone Total Return Bond and will be used going forward. As a result, the information prior to August 1, 2011 reflects that of the Predecessor Fund.

†† Per share data prior to August 1, 2011, reflects a 0.87567:1 stock split. All per share amounts prior to that date have been adjusted to reflect the stock split.

^(A) Effective August 1, 2011, the Fund changed its fiscal year end from March 31 to September 30 and Institutional Class shares were renamed Class Y shares.

^(B) Not annualized.

^(C) Includes adjustments in accordance with accounting principles generally accepted in the United States of America, and, consequently, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions.

^(D) Annualized.

^(E) Portfolio turnover excludes the purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

103

Financial Highlights (Continued)

Touchstone Total Return Bond Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months									Period
	Ended									Ended
	March 31,			Year Ended						September
	2014			September 30,						30,
	(Unaudited)			2013			2012			2011(A)
Net asset value at beginning of period	$	10.08		$	10.51		$	10.14		$	10.06
Income from investment operations:
Net investment income		0.16			0.25			0.22			0.08
Net realized and unrealized gains (losses) on investments		0.08			(0.36	)		0.46			0.09
Total from investment operations		0.24			(0.11	)		0.68			0.17
Distributions from:
Net investment income		(0.17	)		(0.31	)		(0.31	)		(0.09	)
Realized capital gains		—			(0.01	)		—			—
Total distributions		(0.17	)		(0.32	)		(0.31	)		(0.09	)
Net asset value at end of period	$	10.15		$	10.08		$	10.51		$	10.14
Total return		2.37	%(B)		(1.09	%)		6.81	%		1.70	%(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	119,991		$	133,051		$	148,341		$	6,386
Ratio to average net assets:
Net expenses		0.50	%(C)		0.50	%		0.50	%		0.50	%(C)
Gross expenses		0.59	%(C)		0.60	%		0.67	%		1.21	%(C)
Net investment income		3.26	%(C)		2.47	%		2.66	%		4.89	%(C)
Portfolio turnover rate		1	%(B)		35	%		79	%(D)		7	%(B)

^(A) Effective Represents the period from commencement of operations (August 1, 2011) through September 30, 2011.

^(B) Not annualized.

^(C) Annualized.

^(D) Portfolio turnover excludes the purchases and sales of the Old Mutual Barrow Hanley Core Bond Fund acquired on April 16, 2012. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

104

Financial Highlights (Continued)

Touchstone Ultra Short Duration Fixed Income Fund—Class A

Selected Data for a Share Outstanding Throughout Each Period

	Six Months			Year			Period
	Ended			Ended			Ended
	March 31,			September			September
	2014			30,			30,
	(Unaudited)			2013			2012(A)
Net asset value at beginning of period	$	9.45		$	9.56		$	9.57
Income (loss) from investment operations:
Net investment income		0.03			0.09			0.09
Net realized and unrealized gains (losses) on investments		0.02			(0.04	)		(0.01	)
Total from investment operations		0.05			0.05			0.08
Distributions from:
Net investment income		(0.07	)		(0.16	)		(0.09	)
Net asset value at end of period	$	9.43		$	9.45		$	9.56
Total return(B)		0.52	%(C)		0.48	%		0.85	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	11,995		$	32,088		$	34,228
Ratio to average net assets:
Net expenses		0.69	%(D)		0.69	%		0.69	%(D)
Gross expenses		0.88	%(D)		0.83	%		1.19	%(D)
Net investment income		0.80	%(D)		0.85	%		1.40	%(D)
Portfolio turnover rate		56	%(C)		107	%(E)		169	%(E)(F)

Touchstone Ultra Short Duration Fixed Income Fund—Class C

Selected Data for a Share Outstanding Throughout Each Period

	Six Months			Year			Period
	Ended			Ended			Ended
	March 31,			September			September
	2014			30,			30,
	(Unaudited)			2013			2012(A)
Net asset value at beginning of period	$	9.45		$	9.56		$	9.57
Income from investment operations:
Net investment income		0.02			0.04			0.05
Net realized and unrealized gains (losses) on investments		0.02			(0.04	)		0.01
Total from investment operations		0.04			—			0.06
Distributions from:
Net investment income		(0.05	)		(0.11	)		(0.07	)
Net asset value at end of period	$	9.44		$	9.45		$	9.56
Total return(B)		0.37	%(C)		(0.02	%)		0.62	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	11,787		$	13,568		$	11,517
Ratio to average net assets:
Net expenses		1.19	%(D)		1.19	%		1.19	%(D)
Gross expenses		1.40	%(D)		1.39	%		1.68	%(D)
Net investment income		0.30	%(D)		0.35	%		0.90	%(D)
Portfolio turnover rate		56	%(C)		107	%(E)		169	%(E)

^(A) Represents the period from commencement of operations (April 16, 2012) through September 30, 2012.

^(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 Touchstone Short Duration Fixed Income Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.

^(F) Portfolio turnover excludes the purchases and sales of the Old Mutual Dwight Short Term Fixed Income Fund and Fifth Third Short Term Bond Fund acquired on April 16, 2012 and September 10, 2012, respectively. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

105

Financial Highlights (Continued)

Touchstone Ultra Short Duration Fixed Income Fund—Class Y

Selected Data for a Share Outstanding Throughout Each Period

	Six Months			Year			Period
	Ended			Ended			Ended
	March 31,			September			September
	2014			30,			30,
	(Unaudited)			2013			2012(A)
Net asset value at beginning of period	$	9.45		$	9.56		$	9.57
Income (loss) from investment operations:
Net investment income		0.05			0.12			0.08
Net realized and unrealized gains (losses) on investments		0.02			(0.05	)		0.01
Total from investment operations		0.07			0.07			0.09
Distributions from:
Net investment income		(0.08	)		(0.18	)		(0.10	)
Net asset value at end of period	$	9.44		$	9.45		$	9.56
Total return		0.75	% (B)		0.74	%		0.97	%(B)
Ratios and supplemental data:
Net assets at end of period (000's)	$	235,503		$	249,250		$	190,515
Ratio to average net assets:
Net expenses		0.44	%(C)		0.44	%		0.44	%(C)
Gross expenses		0.49	%(C)		0.51	%		0.55	%(C)
Net investment income		1.05	%(C)		1.10	%		1.65	%(C)
Portfolio turnover rate		56	%(B)		107	%(D)		169	%(E)

Touchstone Ultra Short Duration Fixed Income Fund—Class Z

Selected Data for a Share Outstanding Throughout Each Period

	Six Months
	Ended
	March 31,
	2014			Year Ended September 30,
	(Unaudited)			2013			2012						2010			2009
Net asset value at beginning of period	$	9.45		$	9.56		$	9.58		$	9.68		$	9.66		$	9.74
Income (loss) from investment operations:
Net investment income		0.04			0.09			0.14			0.15			0.18			0.32
Net realized and unrealized gains (losses) on investment		0.02			(0.04	)		0.06			(0.04	)		0.06			(0.07	)
Total from investment operations		0.06			0.05			0.20			0.11			0.24			0.25
Distributions from:
Net investment income		(0.07	)		(0.16	)		(0.22	)		(0.21	)		(0.22	)		(0.33	)
Net asset value at end of period	$	9.44		$	9.45		$	9.56		$	9.58		$	9.68		$	9.66
Total return		0.62	%(B)		0.52	%		2.10	%		1.12	%		2.49	%		2.60	%
Ratios and supplemental data:
Net assets at end of period (000's)	$	385,400		$	381,554		$	338,669		$	346,131		$	236,650		$	108,552
Ratio to average net assets:
Net expenses		0.69	%(C)		0.65	%		0.64	%		0.69	%		0.69	%		0.69	%
Gross expenses		0.76	%(C)		0.73	%		0.73	%		0.78	%		0.81	%		0.85	%
Net Investment Income		0.80	%(C)		0.89	%		1.45	%		1.39	%		1.69	%		3.41	%
Portfolio turnover rate		56	%(B)		107	%(D)		169	%(E)		144	%		119	%		15	%

^(A) Represents the period from commencement of operations (April 16, 2012) through September 30, 2012.

^(B) Not annualized.

^(C) Annualized.

^(D) Portfolio turnover excludes the purchases and sales of the Touchstone Short Duration Fixed Income Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.

^(E) Portfolio turnover excludes the purchases and sales of the Old Mutual Dwight Short Term Fixed Income Fund and Fifth Third Short Term Bond Fund acquired on April 16, 2012 and September 10, 2012, respectively. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

106

Financial Highlights (Continued)

Touchstone Ultra Short Duration Fixed Income Fund—Institutional Class

Selected Data for a Share Outstanding Throughout Each Period

	Six Months			Year			Period
	Ended			Ended			Ended
	March 31,			September			September
	2014			30,			30,
	(Unaudited)			2013			2012(A)
Net asset value at beginning of period	$	9.45		$	9.56		$	9.57
Income from investment operations:
Net investment income		0.05			0.14			0.09
Net realized and unrealized gains (losses) on investments		0.02			(0.07	)		—	(B)
Total from investment operations		0.07			0.07			0.09
Distributions from:
Net investment income		(0.08	)		(0.18	)		(0.10	)
Net asset value at end of period	$	9.44		$	9.45		$	9.56
Total return		0.77	%(C)		0.78	%		0.99	%(C)
Ratios and supplemental data:
Net assets at end of period (000's)	$	56,782		$	59,662		$	6,697
Ratio to average net assets:
Net expenses		0.39	%(D)		0.39	%		0.39	%(D)
Gross expenses		0.47	%(D)		0.52	%		1.23	%(D)
Net investment income		1.10	%(D)		1.15	%		1.70	%(D)
Portfolio turnover rate		56	%(C)		107	%(E)		169	%(F)

^(A) Represents the period from commencement of operations (April 16, 2012) through September 30, 2012.

^(B) Less than $0.005 per share.

^(C) Not annualized.

^(D) Annualized.

^(E) Portfolio turnover excludes the purchases and sales of the Touchstone Short Duration Fixed Income Fund (see Note 11). If these transactions were included, portfolio turnover would have been higher.

^(F) Portfolio turnover excludes the purchases and sales of the Old Mutual Dwight Short Term Fixed Income Fund and Fifth Third Short Term Bond Fund acquired on April 16, 2012 and September 10, 2012, respectively. If these transactions were included, portfolio turnover would have been higher.

See accompanying Notes to Financial Statements.

107

Notes to Financial Statements

March 31, 2014 (Unaudited)

1. Organization

The Touchstone Funds Group 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 Delaware statutory trust pursuant to a Declaration of Trust dated October 25, 1993. The Trust consists of multiple funds including the following thirteen funds (individually, a “Fund,” and collectively, the “Funds”):

Touchstone Arbitrage Fund (“Arbitrage Fund”)

Touchstone Emerging Markets Equity Fund (“Emerging Markets Equity Fund”)

Touchstone Global Real Estate Fund (“Global Real Estate Fund”)

Touchstone International Fixed Income Fund (“International Fixed Income Fund”)

Touchstone Merger Arbitrage Fund (“Merger Arbitrage Fund”)

Touchstone Mid Cap Fund (“Mid Cap Fund”)

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

Touchstone Premium Yield Equity Fund (“Premium Yield Equity Fund”)

Touchstone Sands Capital Select Growth Fund (“Sands Capital Select Growth Fund”)

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

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

Touchstone Total Return Bond Fund (“Total Return Bond Fund”)

Touchstone Ultra Short Duration Fixed Income Fund (“Ultra Short Duration Fixed Income Fund”)

Each Fund is an open-end, diversified, management investment company, with the exception of the Arbitrage Fund, Global Real Estate Fund, International Fixed Income Fund, Merger Arbitrage Fund, Sands Capital Select Growth Fund and Small Cap Core Fund, each of which is an open-end, non-diversified management investment company.

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

					Institutional
	Class A	Class C	Class Y	Class Z	Class
Arbitrage Fund	X	X	X		X
Emerging Markets Equity Fund	X	X	X		X
Global Real Estate Fund	X	X	X		X
International Fixed Income Fund	X	X	X		X
Merger Arbitrage Fund	X	X	X		X
Mid Cap Fund	X	X	X	X	X
Mid Cap Value Fund	X	X	X		X
Premium Yield Equity Fund	X	X	X
Sands Capital Select Growth Fund	X	X	X	X
Small Cap Core Fund	X	X	X		X
Small Cap Value Fund	X	X	X		X
Total Return Bond Fund	X	X	X		X
Ultra Short Duration Fixed Income Fund	X	X	X	X	X

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.

108

Notes to Financial Statements (Unaudited) (Continued) 

2. Significant Accounting Policies

The following is a summary of the Funds’ significant accounting policies:

Security valuation and fair value measurements — All investments in securities are recorded at their estimated fair value. The Funds 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. Generally accepted accounting principles in the United States (“U.S. GAAP”) establish a hierarchy that prioritizes inputs to valuation methods. These inputs are summarized in the three broad levels listed below:

·	Level 1	–	quoted prices in active markets for identical securities
·	Level 2	–	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·	Level 3	–	significant unobservable inputs (including 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. For example, money market instruments are valued using amortized cost, in accordance with rules under the 1940 Act. Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

The aggregate value by input level, as of March 31, 2014, 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, portfolio or sector allocation. The Funds did not hold any Level 3 categorized securities during the six months ended March 31, 2014.

All transfers in and out of the levels are recognized at the value at the end of the period. During the six months ended March 31, 2014, there were no transfers between Levels 1, 2 and 3 for all Funds, except as shown in the Portfolio of Investments for the Emerging Markets 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 sale price, and to the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy. Portfolio securities quoted by NASDAQ are valued at the NASDAQ Official Closing Price (“NOCP”). Securities not traded on a particular day, or for which the last sale price is not readily available, are valued at their last broker-quoted bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service and are categorized in Level 2. Debt securities for which market quotations are readily available are valued at their most recent bid prices as obtained from one or more of the major market makers for such securities by an independent pricing service and are categorized in Level 2. Money market instruments and other debt securities with a remaining maturity of less than 60 days are valued at amortized cost, which approximates market value and are categorized in Level 2. 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. Securities for which market quotations or the NOCP are not readily available are fair valued as determined by or under the direction of the Board ofTrustees (the “Board”) and are categorized in Level 3. Shares of open-end mutual funds in which the Funds invest are valued at their respective net asset values (“NAV”) as reported by the underlying funds and are categorized in Level 1. The prices for foreign securities are reported in local currency and translated into U.S. dollars using currency exchange rates.

109

Notes to Financial Statements (Unaudited) (Continued)

Level 2 Valuation — Securities mainly traded on a non-U.S. exchange are generally valued according to the preceding closing values on that exchange. 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. This may cause the value of the security, if held on the books of a Fund, to be significantly different from the closing value on the non-U.S. exchange and may affect the calculation of that Fund’s NAV. Any debt securities held by a Fund for which market quotations are not readily available are generally priced at their most recent bid prices as obtained from one or more of the major market makers for such securities.

Level 3 Valuation — Securities held by the Funds that do not have readily available market quotations, or securities for which the available market quotations are not reliable, are priced at their fair value using procedures approved by the Funds’ Board.

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.

Investment companies — Certain 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. ETFs 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 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 Funds periodically 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 March 31, 2014, the Arbitrage Fund and Merger Arbitrage Fund held securities sold short with a fair value of $77,297,300 and $242,736,337 and had securities with a fair value of $0 and $212,357,573 held as collateral and cash collateral of $72,733,295 and $213,705,981 for both securities sold short and written options, respectively.

Options — The Funds may write or purchase financial option contracts primarily to hedge against changes in the value of equity securities (or securities that the Funds intend 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 Funds may utilize options in an attempt to generate gains from option premiums or to reduce overall portfolio risk. The Funds’ option strategy primarily focuses on the use of writing call options on equity indexes. When the Funds write or purchase an option, an amount equal to the premium received or paid by the Funds is recorded as a liability or an asset and is subsequently

110

Notes to Financial Statements (Unaudited) (Continued)

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 Funds on the expiration 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 Funds have realized a gain or loss on investment transactions. The Funds, as writers of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and as a result bear the market risk of an unfavorable change in the price of the security underlying the written option. The Funds, as purchasers of an option, bear 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. Options are valued at the last quoted sales price. If there is no such reported sale on the 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. As of March 31, 2014, the Arbitrage Fund and Merger Arbitrage Fund held written options with a fair value of $98,570 and $427,997 and had securities with a fair value of $0 and $212,357,573 held as collateral and cash collateral of $72,733,295 and $213,705,981 for both securities sold short and written options, respectively. The Arbitrage and Merger Arbitrage Fund also held purchased options with a fair value of $78,405 and $375,055, resepctively, as of March 31, 2014.

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 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 the Fund’s total return, and the potential for losses in excess of the 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 March 31, 2014, the Arbitrage Fund, the International Fixed Income Fund, and the Merger Arbitrage 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.

Derivative instruments and hedging activities — In order to better define its contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International

111

Notes to Financial Statements (Unaudited) (Continued)

Swaps and Derivatives Associations, Inc. Master Agreement (“ISDA Master Agreement” or “MNA”) or similar agreement with certain counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs over-the-counter (“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, a 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 Statements 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 from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. A Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

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 to accelerate payment of any net liability owed to the counterparty.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

As of March 31, 2014, the derivative assets and liabilities (by type) on a gross basis for the Funds were as follows:

	Assets		Liabilities
Arbitrage Fund
Written Options	$	—	$	98,570
Merger Arbitrage Fund
Forward Foreign Currency Contracts		22,805		568,423
Written Options		—		427,997
Total gross amounts of assets and liabilities subject to MNA	$	22,805	$	1,094,990

The following table presents the Arbitrage Fund, International Fixed Income Fund and Merger Arbitrage Fund’s derivative assets net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of March 31, 2014

112

Notes to Financial Statements (Unaudited) (Continued)

	Gross
	Amount of		Gross Amount Available			Non-Cash		Cash		Net Amount
	Recognized		for Offset in Statement			Collateral		Collateral		of Derivative
	Assets		of Assets and Liabilities			Pledges		Pledges		Assets(A)
Merger Arbitrage Fund
Forward Foreign Currency Contracts(B)	$	22,805	$	(22,805	)	$	—	$	—	$	—
Total	$	22,805	$	(22,805	)	$	—	$	—	$	—

The following table presents the Arbitrage Fund, International Fixed Income Fund and Merger Arbitrage Fund’s derivative liabilities net of amounts available for offset under a MNA and net of the related collateral pledged by the Fund as of March 31, 2014:

	Gross
	Amount of		Gross Amount Available			Non-Cash			Cash			Net Amount
	Recognized		for Offset in Statement			Collateral			Collateral			of Derivative
	Liabilities		of Assets and Liabilities			Pledges			Pledges			Liabilities(C)
Arbitrage Fund
Written Options(D)	$	98,570	$	—		$	—		$	(92,632	)	$	5,938
Merger Arbitrage Fund
Forward Foreign Currency Contracts(B)		568,423		(22,805	)		—			—			545,618
Written Options(D)		427,997		—			(51,850	)		(376,147	)		—
Total	$	1,094,990	$	(22,805	)	$	(51,850	)	$	(468,779	)	$	551,556

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

^(B) Brown Brothers Harriman is the counterparty.

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

^(D) BTIG is the counterparty.

The following table sets forth the fair value of the Funds’ derivative financial instruments by primary risk exposure as of March 31, 2014:

Fair Value of Derivative Investments

As of March 31, 2014 

	Derivatives not accounted for as hedging	Asset		Liability
Fund	instruments under ASC 815	Derivatives		Derivatives
Arbitrage Fund	Forward-Foreign Currency Exchange Contracts*	$	4,623	$	107,593
	Purchased Options-Equity Contracts**		78,405		—
	Written Options-Equity Contracts***		—		98,570
International Fixed Income Fund	Forward-Foreign Currency Exchange Contracts*		330,060		350,893
Merger Arbitrage Fund	Forward-Foreign Currency Exchange Contracts*		22,805		568,423
	Purchased Options-Equity Contracts**		375,055		—
	Written Options-Equity Contracts***		—		427,997
Small Cap Core Fund	Warrants-Equity Contracts**		253,110		—

* 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: Non-affiliated security, at market value.

*** Statements of Assets and Assets and Liabilities Location: Written options at market value.

113

Notes to Financial Statements (Unaudited) (Continued) 

The following table sets forth the operations of the Funds’ derivative financial instruments by primary risk exposure as of March 31, 2014:

The Effect of Derivative Investments on the Statement of Operations

for the Six Months Ended March 31, 2014

					Change in
					Unrealized
		Realized Gain			Appreciation
	Derivatives not accounted for as hedging	(Loss)			(Depreciation)
Fund	instruments under ASC 815	on Derivatives			on Derivatives
Arbitrage Fund	Forward-Foreign Currency Exchange Contracts*	$	201,465		$	(102,970	)
	Purchased Options-Equity Contracts**		(14,878	)		(46,775	)
	Written Options-Equity Contracts***		—			35,638
International Fixed Income Fund	Forward-Foreign Currency Exchange Contracts*		(381,886	)		337,395
Merger Arbitrage Fund	Forward-Foreign Currency Exchange Contracts*		1,139,532			(489,944	)
	Purchased Options-Equity Contracts**		(78,966	)		(512,562	)
	Written Options-Equity Contracts***		—			468,252
Small Cap Core Fund	Warrants-Equity Contracts**		—			(338,875	)

* 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 gains (losses) from non-affiliated securities and net change in unrealized appreciation (depreciation) on investments, respectively.

*** Statements of Operations Location: Net change in unrealized appreciation (depreciation) on written options.

For the six months ended March 31, 2014, the average quarterly balance of outstanding derivative financial instruments were as follows:

			International		Merger		Small
	Arbitrage		Fixed Income		Arbitrage		Cap Core
Fund	Fund		Fund		Fund		Fund
Equity contracts:
Purchased Options - Average number of contracts		341		—		1,678		—
Written Options - Average number of contracts		333		—		2,177		—
Warrants - Average number of contracts		—		—		—		69,345
Foreign currency exchange contracts:
Average number of contracts		6		18		6		—
Average U.S. dollar amount purchased	$	5,291,627	$	13,760,369	$	31,078,463	$	—
Average U.S. dollar amount sold	$	817,703	$	17,978,850	$	3,106,061	$	—

Portfolio securities loaned — Each Fund may lend its portfolio securities. Lending portfolio securities exposes a Fund to the risk that the borrower may fail to return the loaned securities or may not be able to provide additional collateral or that the 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.

114

Notes to Financial Statements (Unaudited) (Continued) 

As of March 31, 2014, the following Funds loaned securities and received collateral as follows:

	Market Value of		Market Value of
	Securities		Collateral
Fund	Loaned		Received
Emerging Markets Equity Fund	$	15,104,148	$	15,337,555
Global Real Estate Fund		1,056,154		1,090,981
Mid Cap Fund		28,255,508		28,588,759
Mid Cap Value Fund		12,400,092		12,608,180
Sands Capital Select Growth Fund		158,652,865		159,916,330
Small Cap Core Fund		114,067,841		115,115,695
Small Cap Value Fund		5,204,279		5,379,679

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 daily trading volumes, float, short term interest rates and market liquidity. A lending Fund retains the interest or dividends on the investment of any cash received as collateral. The lending 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 lending Fund. The lending Fund has the right under the lending agreement to recover the securities from the borrower on demand.

When-issued or delayed delivery transactions — Each Fund may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Fund will set aside liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining NAV. The Fund may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When the Fund has sold a security on a delayed delivery basis, the Fund does not participate in future gains and losses with respect to the security.

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 (except the International Fixed Income Fund, Total Return Bond Fund and Ultra Short Duration Fixed Income Fund) 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). The maximum offering price per share of Class A shares of the International Fixed Income Fund and Total Return Bond Fund is equal to the NAV per share plus a sales load equal to 4.99% of the NAV (or 4.75% of the offering price). The maximum offering price per share of Class A shares of the Ultra Short Duration Fixed Income Fund is equal to the NAV per share plus sales load equal to 2.04% of the NAV (or 2.00% 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 C, Y, Z, 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.

115

Notes to Financial Statements (Unaudited) (Continued) 

Additionally, purchases of Class C shares of the Funds are subject to a CDSC of 1.00% that 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 issue 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. The Arbitrage Fund, Emerging Markets Equity Fund, Merger Arbitrage Fund, Mid Cap Fund, and Small Cap Core Fund distribute their income, if any, annually, as a dividend to shareholders. The Global Real Estate Fund, Mid Cap Value Fund, Sands Capital Select Growth Fund, and Small Cap Value Fund declare and distribute their income, if any, quarterly, as a dividend to shareholders. The International Fixed Income Fund, Premium Yield Equity Fund, and Total Return Bond Fund declare and distribute their income, if any, monthly, as a dividend to shareholders. The Ultra Short Duration Fixed Income Fund declares its income, if any, daily, and distributes such income 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 that invest in underlying funds is affected by the timing of dividend declarations by 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, in Touchstone Investment Trust,Touchstone Strategic Trust,Touchstone Variable Series Trust,Touchstone Institutional Funds Trust, and Touchstone Tax-Free 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.

116

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 March 31, 2014:

			Emerging		Global		International		Merger
	Arbitrage		Markets Equity		Real Estate		Fixed Income		Arbitrage
	Fund		Fund		Fund		Fund		Fund
Purchases of investment securities	$	357,142,572	$	109,480,265	$	4,236,809	$	12,086,192	$	946,505,405
Proceeds from sales and maturities	$	164,776,762	$	103,537,119	$	4,933,681	$	8,260,585	$	1,033,583,409

			Mid Cap		Premium Yield		Sands Capital
	Mid Cap		Value		Equity		Select Growth
	Fund		Fund*		Fund		Fund
Purchases of investment securities	$	104,449,300	$	48,717,817	$	30,588,113	$	1,010,661,944
Proceeds from sales and maturities	$	41,605,201	$	103,968,473	$	24,801,560	$	860,097,567

	Small Cap		Small Cap		Total Return		Ultra Short
	Core		Value		Bond		Duration Fixed
	Fund		Fund**		Fund		Income Fund
Purchases of investment securities	$	100,016,124	$	20,976,005	$	1,757,122	$	351,095,894
Proceeds from sales and maturities	$	86,149,842	$	24,376,113	$	15,862,924	$	398,741,157

* The cost of purchases and proceeds from sales on the Mid Cap Value Fund excludes the purchases and sales of the Acquired Fund (See Note 11). If these transactions were included, purchases and sales would have been higher.

** The Small Cap Value Fund had a subscription-in-kind on March 21, 2014, which resulted in a subscription into the Fund of $24,800,570 and is excluded from the Purchases of Investment Securities. The subscription was comprised of securities and cash in the amounts of $24,652,457 and $148,113, respectively. The cost of purchases and proceeds from sales on the Small Cap Value Fund excludes the purchases and sales of the Acquired Fund (See Note 11). If these transactions were included, purchases and sales would have been higher.

For the six months ended March 31, 2014, purchases and proceeds from sales and maturities in U.S. Government Securities were $0 and $214,563 for the International Fixed Income Fund, $394,789 and $8,793,979 for the Total Return Bond Fund and $7,000,155 and $49,046,240 for the Ultra Short Duration Fixed 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 will also receive compensation for each board meeting and committee meeting attended. Each standing committee chair will receive 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 expenses of $77,189 for the six months ended March 31, 2014.

117

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 (the “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.

Arbitrage Fund	1.05% on the first $500 million
	1.00% on the next $500 million
	0.95% of such assets in excess of $1 billion
Emerging Markets Equity Fund	1.05% on the first $200 million
	1.00% on the next $200 million
	0.90% of such assets in excess of $400 million
Global Real Estate Fund	0.80%
International Fixed Income Fund	0.55% on the first $100 million
	0.50% on the next $150 million
	0.45% of such assets in excess of $250 million
Merger Arbitrage Fund	1.05%
Mid Cap Fund	0.80% on the first $500 million
	0.75% on the next $500 million
	0.70% of such assets in excess of $1 billion
Mid Cap Value Fund	0.85% on the first $100 million
	0.80% on the next $300 million
	0.75% of such assets in excess of $400 million
Premium Yield Equity Fund	0.70% on the first $100 million
	0.65% of such assets in excess of $100 million
Sands Capital Select Growth Fund	0.85% on the first $1 billion
	0.80% on the next $500 million
	0.75% on the next $500 million
	0.70% of such assets in excess of $2 billion
Small Cap Core Fund	0.85%
Small Cap Value Fund	0.90%
Total Return Bond Fund	0.35%
Ultra Short Duration Fixed Income Fund	0.25%

In addition to the base advisory fee shown above for the Sands Capital Select Growth Fund, a performance fee adjustment will be added to or subtracted from the base advisory fee depending on the performance of the Fund in relation to the investment performance of the Fund’s benchmark index, for the preceding twelve month period, as follows:

				Annual		Highest / Lowest
	Benchmark	Benchmark		Adjustment		Possible Advisory
	Index	Threshold		Rate		Fee
Sands Capital Select Growth Fund	Russell1000 Growth Index		+/-2.50%		+/-0.15%		1.00% / 0.55%

For the six months ended March 31, 2014, the Advisor’s base fee was increased by $3,645,344 as a result of the performance fee adjustment.

118

Notes to Financial Statements (Unaudited) (Continued)

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

AGF Investments America, Inc.	GAM International Management Limited
Emerging Markets Equity Fund	International Fixed Income Fund
Forum Securities Limited	Lee Munder Capital Group LLC
Global Real Estate Fund	Mid Cap Value Fund
DePrince, Race & Zollo, Inc.	The London Company
Small Cap Value Fund	Small Cap Core Fund
	Mid Cap Fund
EARNEST Partners LLC	Longfellow Investment Management Co.
Total Return Bond Fund	Arbitrage Fund
	Merger Arbitrage Fund
Fort Washington Investment Advisors, Inc.*	Miller/Howard Investments, Inc.
Ultra Short Duration Fixed Income Fund	Premium Yield Equity Fund
	Sands Capital Management, LLC
	Sands Capital Select Growth Fund

*Affiliate of the Advisor and wholly-owned indirect 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 operating expenses of the Funds, excluding: dividend and interest expenses on short sales; interest; taxes; brokerage commissions; other expenditures which are capitalized in accordance with GAAP; the cost of “Acquired Fund Fees and Expenses”, if any; and other extraordinary expenses not incurred in the ordinary course of business. The maximum operating expense limit in any year with respect to the Funds is based on a percentage of the average daily net assets of the Funds. The Advisor has agreed to separately waive class-level expenses, advisory fees, administration fees, and to reimburse expenses in order to maintain the following expense limitations for the Funds:

													Institutional
	Class A			Class C			Class Y			Class Z			Class
Arbitrage Fund		1.68	%		2.43	%		1.43	%		—			1.28	%
Emerging Markets Equity Fund		1.69	%		2.44	%		1.44	%		—			1.29	%
Global Real Estate Fund		1.39	%		2.14	%		1.14	%		—			0.99	%
International Fixed Income Fund		1.09	%		1.84	%		0.84	%		—			0.69	%
Merger Arbitrage Fund		1.68	%		2.43	%		1.43	%		—			1.28	%
Mid Cap Fund		1.24	%		1.99	%		0.99	%		1.24	%		0.92	%
Mid Cap Value Fund		1.29	%		2.04	%		1.04	%		—			0.89	%
Premium Yield Equity Fund		1.20	%		1.95	%		0.95	%		—			—
Small Cap Core Fund		1.38	%		2.13	%		1.13	%		—			1.05	%
Small Cap Value Fund		1.38	%		2.13	%		1.13	%		—			0.98	%
Total Return Bond Fund		0.90	%		1.65	%		0.65	%		—			0.50	%
Ultra Short Duration Fixed Income Fund		0.69	%		1.19	%		0.44	%		0.69	%		0.39	%

These expense limitations will remain in effect for all Funds through at least January 29, 2015 except for Mid Cap Value Fund and Small Cap Value Fund, which will remain in effect until March 23, 2015.

119

Notes to Financial Statements (Unaudited) (Continued)

Prior to January 29, 2014 for the Mid Cap Fund and Small Cap Core Fund, and prior to November 29, 2013 for the Small Cap Value Fund, the expense limitations were as follows:

													Institutional
	Class A			Class C			Class Y			Class Z			Class
Mid Cap Fund		1.21	%		1.96	%		0.96	%		1.21	%		0.89	%
Small Cap Core		1.34	%		2.09	%		1.09	%		—			0.94	%
Small Cap Value Fund		1.43	%		2.18	%		1.18	%		—			1.03	%

The Advisor has agreed to limit certain Funds’ other operating expenses (“Other Expenses”) to the following levels which will remain in effect though at least January 29, 2015.

	Class A			Class C			Class Y			Class Z
Sands Capital Select Growth Fund		0.25	%		0.25	%		0.25	%		0.25	%

During the six months ended March 31, 2014, 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
	Advisory		Administration		Operating
	Fees		Fees		Expenses
	Waived		Waived		Reimbursed		Total
Arbitrage Fund	$	—	$	—	$	6,817	$	6,817
Emerging Markets Equity Fund		—		28,460		57,130		85,590
Global Real Estate Fund		35,469		11,838		18,840		66,147
International Fixed Income Fund		11,253		25,203		22,633		59,089
Mid Cap Fund		—		165,187		49,619		214,806
Mid Cap Value Fund		—		112,419		22,678		135,097
Premium Yield Equity Fund		—		—		48,216		48,216
Sands Capital Select Growth Fund		—		—		517,020		517,020
Small Cap Core Fund		—		243,573		32,533		276,106
Small Cap Value Fund		14,835		34,192		23,118		72,145
Total Return Bond Fund		—		54,794		30,037		84,831
Ultra Short Duration Fixed Income Fund		—		185,655		58,971		244,626

Under the terms of the Expense Limitations 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 the waiver or reimbursement.

As of March 31, 2014, the Advisor may seek recoupment of previously waived fees and reimbursed expenses as follows:

	Expiration		Expiration		Expiration
	September		September		September
	30,		30,		30,
Fund	2015		2016		2017		Total
Arbitrage Fund	$	—	$	—	$	2,192	$	2,192
Emerging Markets Equity Fund		97,952		—		66,178		164,130
Global Real Estate Fund		67,941		143,253		63,379		274,573
International Fixed Income Fund		34,638		131,781		56,743		223,162
Mid Cap Fund		90,758		256,834		183,980		531,572
Mid Cap Value Fund		130,859		273,521		124,635		529,015
Premium Yield Equity Fund		32,094		45,482		6,022		83,598
Sands Capital Select Growth Fund		446,251		2,128,875		517,020		3,092,146
Small Cap Core Fund		313,523		789,388		246,870		1,349,781
Small Cap Value Fund		87,517		130,886		60,011		278,414

120

Notes to Financial Statements (Unaudited) (Continued)

	Expiration		Expiration		Expiration
	September		September		September
	30,		30,		30,
Fund	2015		2016		2017		Total
Total Return Bond Fund		126,307		163,756		67,406		357,469
Ultra Short Duration Fixed Income Fund		299,436		470,719		221,604		991,759

For the six months ended March 31, 2014, the Advisor may recoup fees and expenses, subject to Board approval, from the Merger Arbitrage Fund, Sands Capital Select Growth Fund and Ultra Short Duration Fixed Income Fund of $20,195, $324,347 and $600, respectively.

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 Securities and Exchange Commission (the “SEC”) and state securities authorities, as well as materials for meetings of the Board of Trustees; calculating the daily NAV per share; and maintaining the financial books and records of each Fund. For its services, the Advisor receives an annual fee of 0.20% on the first $6 billion of the aggregate average daily net assets of the Touchstone Fund Complex (excludingTouchstone Institutional Money Market Fund,Touchstone Institutional Funds Trust, and Touchstone Variable Series Trust); 0.16% of the next $4 billion of aggregate average daily net assets; and 0.12% of the aggregate average daily net assets over $10 billion. The fee is allocated among the funds of the Touchstone Fund Complex (excluding Touchstone Institutional Money Market Fund, Touchstone Institutional Funds Trust, and Touchstone Variable Series Trust) on the basis of relative daily net assets.

The Advisor has engaged BNY Mellon as the Sub-Administrator to theTrust. 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 per shareholder account from each Fund. In addition, each Fund pays out-of-pocket expenses incurred by BNY Mellon, including, but not limited to, postage and supplies.

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 $17 per sub-account maintained by the intermediary. The Funds will only reimburse the Advisor up to $17 per sub-account maintained by the intermediary.

PLANS OF DISTRIBUTION AND SHAREHOLDERS 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

121

Notes to Financial Statements (Unaudited) (Continued)

Class C plan, each Fund (except the Ultra Short Duration Fixed Income Fund) 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). The Ultra Short Duration Fixed Income Fund intends to limit the amount of the 12b-1 fees for Class C shares to 0.75% of average daily net assets for at least one year from January 30, 2014. Under the Class Z plan, each Fund offering Class Z shares pays an annual shareholder servicing fee of up to 0.25% of average daily net assets that are attributed to Class Z shares.

UNDERWRITING AGREEMENT

The Underwriter is the Funds’ principal underwriter and, as such, acts as exclusive agent for distribution of the Funds’ shares. Under the terms of the Underwriting Agreement between the Trust and the Underwriter, the Underwriter earned the following from underwriting and broker commissions on the sale of Class A shares of the Funds listed below during the six months ended March 31, 2014:

Fund	Amount
Arbitrage Fund	$	186,807
Emerging Markets Equity Fund		1,550
Global Real Estate Fund		200
International Fixed Income Fund		57
Merger Arbitrage Fund		799
Mid Cap Fund		20,754
Mid Cap Value Fund		2,844
Premium Yield Equity Fund		6,762
Sands Capital Select Growth Fund		25,078
Small Cap Core Fund		1,846
Small Cap Value Fund		677
Total Return Bond Fund		300
Ultra Short Duration Fixed Income Fund		151

In addition, the Underwriter collected CDSC on the redemption of Class Y shares for the Merger Arbitrage Fund of $10 and collected CDSC on the redemption of Class C shares of the Funds listed below during the six months ended March 31, 2014:

Fund	Amount
Arbitrage Fund	$	10
Emerging Markets Equity Fund		92
Merger Arbitrage Fund		310
Mid Cap Fund		1,414
Premium Yield Equity Fund		1,387
Sands Capital Select Growth Fund		3,491
Small Cap Core Fund		14
Small Cap Value Fund		343
Total Return Bond Fund		42
Ultra Short Duration Fixed Income Fund		13

AFFILIATED INVESTMENTS

Each Fund may invest in the Touchstone Institutional Money Market Fund, subject to compliance with several conditions set forth in an exemptive order received by the Trust from the SEC. To the extent that the Funds are invested in the Touchstone Institutional Money Market Fund, the Advisor and Administrator will be paid additional fees from the Touchstone Institutional Money Market Fund that will not be waived or reimbursed.

122

Notes to Financial Statements (Unaudited) (Continued)

A summary of each Fund’s investment, as applicable, in the Touchstone Institutional Money Market Fund for the six months ended March 31, 2014, is as follows:

	Share Activity
	Balance							Balance				Value
	09/30/13		Purchases		Sales			03/31/14		Dividends		03/31/14
Arbitrage Fund		—		223,137,235		(201,540,782	)		21,596,453	$	943	$	21,596,453
Emerging Markets Equity Fund		37		87,320,199		(85,820,606	)		1,499,630		314		1,499,630
Global Real Estate Fund		284,605		3,426,655		(3,711,260	)		—		5		—
International Fixed Income Fund		2,884,332		13,128,059		(11,901,868	)		4,110,523		149		4,110,523
Merger Arbitrage Fund		49,682,768		573,253,711		(520,266,163	)		102,670,316		6,307		102,670,316
Mid Cap Fund		6,589,029		94,359,909		(93,921,669	)		7,027,269		348		7,027,269
Mid Cap Value Fund		1,574,222		45,249,158		(41,180,206	)		5,643,174		135		5,643,174
Premium Yield Equity Fund		1,806,138		48,526,397		(48,644,798	)		1,687,737		180		1,687,737
Sands Capital Select Growth Fund		107,983,851		800,396,314		(724,632,404	)		183,747,761		6,383		183,747,761
Small Cap Core Fund		10,153,738		87,054,239		(83,483,810	)		13,724,167		616		13,724,167
Small Cap Value Fund		578,313		10,009,495		(10,326,975	)		260,833		42		260,833
Total Return Bond Fund		43,862		20,974,163		(18,530,711	)		2,487,314		91		2,487,314
Ultra Short Duration Fixed Income Fund		22,462,434		616,803,386		(614,036,638	)		25,229,182		1,256		25,229,182

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.

The tax character of distributions paid are as follows:

	Emerging Markets				Global Real				International Fixed
	Equity Fund				Estate Fund				Income Fund
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended		Year Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2013		2012		2013		2012		2013		2012
From ordinary income	$	2,155,832	$	9,820,137	$	1,130,389	$	336,360	$	160,195	$	550,240
From long-term capital gains		—		3,092,612		130,257		100,694		57,565		53,795
	$	2,155,832	$	12,912,749	$	1,260,646	$	437,054	$	217,760	$	604,035

	Merger Arbitrage				Mid Cap				Mid Cap
	Fund				Fund				Value Fund
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended		Year Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2013		2012		2013		2012		2013		2012
From ordinary income	$	3,990,135	$	61,084	$	1,224,384	$	142,586	$	1,756,707	$	3,391,737
From long-term capital gains		36		—		—		—		789,040		506,388
	$	3,990,171	$	61,084	$	1,224,384	$	142,586	$	2,545,747	$	3,898,125

123

Notes to Financial Statements (Unaudited) (Continued)

	Premium Yield				Sands Capital				Small Cap
	Equity Fund				Select Growth Fund				Core Fund
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended		Year Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2013		2012		2013		2012		2013		2012
From ordinary income	$	4,010,251	$	2,414,120	$	—	$	—	$	7,220,554	$	207,966
From long-term capital gains		—		—		—		—		4,126,641		2,697,854
From return of capital		—		60,138		—		—		—		—
	$	4,010,251	$	2,474,258	$	—	$	—	$	11,347,195	$	2,905,820

	Small Cap				Total Return				Ultra Short Duration
	Value Fund				Bond Fund				Fixed Income Fund
	Year Ended		Year Ended		Year Ended		Year Ended		Year Ended		Year Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2013		2012		2013		2012		2013		2012
From ordinary income	$	719,931	$	662,666	$	5,144,219	$	2,807,030	$	10,888,038	$	9,247,966
From long-term capital gains		—		—		107,772		—		—		—
	$	719,931	$	662,666	$	5,251,991	$	2,807,030	$	10,888,038	$	9,247,966

The following information is computed on a tax basis for each item as of September 30, 2013:

	Emerging			Global			International
	Markets Equity			Real Estate			Fixed Income			Merger
	Fund			Fund			Fund			Arbitrage Fund
Tax cost of portfolio investments	$	384,203,368		$	16,340,683		$	30,062,402		$	698,993,060
Gross unrealized appreciation		31,142,595			296,100			1,156,363			19,266,523
Gross unrealized depreciation		(45,316,671	)		(1,468,399	)		(1,032,689	)		(3,743,221	)
Net unrealized appreciation (depreciation) on investments		(14,174,076	)		(1,172,299	)		123,674			15,523,302
Net unrealized appreciation (depreciation) on written options		—			—			—			(700	)
Net unrealized appreciation (depreciation) on securities sold short		—			—			—			(13,911,563	)
Net unrealized appreciation (depreciation) on foreign currency transactions		(16,256	)		1,457			12,012			—
Accumulated capital losses		(3,711,891	)		—			—			—
Qualified late-year losses		(23,962,853	)		—			—			—
Other temporary differences		(5,084	)		—			(506,726	)		—
Undistributed ordinary income		3,645,713			1,711,433			45,136			22,114,447
Undistributed capital gains		—			674,009			320,838			—
Accumulated earnings (deficit)	$	(38,224,447	)	$	1,214,600		$	(5,066	)	$	23,725,486

							Premium			Sands Capital
				Mid Cap Value			Yield Equity			Select Growth
	Mid Cap Fund			Fund			Fund			Fund
Tax cost of portfolio investments	$	353,062,307		$	149,179,260		$	122,744,358		$	3,722,910,301
Gross unrealized appreciation		26,873,006			24,026,133			23,586,931			1,807,482,728
Gross unrealized depreciation		(4,876,881	)		(2,600,963	)		(2,521,629	)		(48,716,836	)
Net unrealized appreciation (depreciation) on investments		21,996,125			21,425,170			21,065,302			1,758,765,892
Accumulated capital losses		(146,316,928	)		—			(1,058,080	)		—
Qualified late-year losses		—			—			—			(24,531,763	)
Undistributed ordinary income		502,132			5,076,126			95,883			—
Undistributed capital gains		—			7,862,393			—			3,282,186
Accumulated earnings (deficit)	$	(123,818,671	)	$	34,363,689		$	20,103,105		$	1,737,516,315

124

Notes to Financial Statements (Unaudited) (Continued)

										Ultra Short
							Total			Duration
	Small Cap Core			Small Cap Value			Return Bond			Fixed Income
	Fund			Fund			Fund			Fund
Tax cost of portfolio investments	$	709,704,361		$	38,679,746		$	168,644,966		$	735,200,080
Gross unrealized appreciation		179,258,195			4,056,412			1,400,204			2,821,576
Gross unrealized depreciation		(9,802,944	)		(1,356,397	)		(3,322,303	)		(3,475,226	)
Net unrealized appreciation (depreciation) on
investments		169,455,251			2,700,015			(1,922,099	)		(653,650	)
Accumulated capital losses		—			(22,000,100	)		—			(16,019,526	)
Qualified late-year losses		—			—			(206,316	)		(4,372,902	)
Undistributed ordinary income		12,732,836			—			19,128			660,736
Undistributed capital gains		12,210,267			—			—			—
Other temporary differences		—			—			—			(176,928	)
Accumulated earnings (deficit)	$	194,398,354		$	(19,300,085	)	$	(2,109,287	)	$	(20,562,270	)

The difference between the tax cost of portfolio investments and the financial statement cost is primarily due to wash sale loss deferrals, investments in passive foreign investment company (“PFIC”) adjustments, regulated investment companies, and real estate investment trusts.

As of September 30, 2013, the Funds had the following capital loss carryforwards for federal income tax purposes:

													No		No
													Expiration		Expiration
	Short Term Expiring On												Short		Long
	2014		2015		2016		2017		2018		2019		Term*		Term*		Total
Emerging Markets Equity Fund	$	—	$	—	$	—	$	—	$	—	$	—	$	2,277,537	$	1,434,354	$	3,711,891
Mid Cap Fund		—		—		—		75,516,136		70,800,792		—		—		—		146,316,928
Premium Yield Equity Fund		—		—		—		—		1,058,080		—		—		—		1,058,080
Small Cap Value Fund		—		—		—		4,146,671		17,853,429		—		—		—		22,000,100
Ultra Short Duration Fixed Income Fund**		1,223,321		460,138		1,769,310		3,231,117		3,336,624		933,830		2,285,749		2,779,437		16,019,526

* 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 are effective for each fiscal year end for the Funds’ beginning October 1, 2011. 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.

** May be subject to limitation.

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.

125

Notes to Financial Statements (Unaudited) (Continued)

As of March 31, 2014, the federal tax cost and unrealized appreciation (depreciation) was as follows for the funds:

								Net
			Gross		Gross			Unrealized
	Federal		Unrealized		Unrealized			Appreciation
	Tax Cost		Appreciation		Depreciation			(Depreciation)
Arbitrage Fund	$	215,101,401	$	4,569,821	$	(1,045,166	)	$	3,524,655
Emerging Markets Equity Fund		376,109,183		24,064,709		(22,001,505	)		2,063,204
Global Real Estate Fund		15,801,155		547,213		(657,264	)		(110,051	)
International Fixed Income Fund		35,236,868		1,731,596		(1,116,416	)		615,180
Merger Arbitrage Fund		671,584,994		19,321,641		(6,494,396	)		12,827,245
Mid Cap Fund		411,432,868		58,525,847		(2,854,100	)		55,671,747
Mid Cap Value Fund		263,095,312		37,725,559		(927,425	)		36,798,134
Premium Yield Equity Fund		132,436,761		29,401,423		(4,179,536	)		25,221,887
Sands Capital Select Growth Fund		4,155,984,054		2,232,867,810		(30,508,812	)		2,202,358,998
Small Cap Core Fund		784,879,753		245,474,591		(7,081,045	)		238,393,546
Small Cap Value Fund		79,495,245		7,787,183		(842,076	)		6,945,107
Total Return Bond Fund		147,536,809		1,837,805		(2,023,019	)		(185,214	)
Ultra Short Duration Fixed Income Fund		699,345,274		2,974,240		(2,979,979	)		(5,739	)

The Funds have analyzed their tax positions taken on federal income tax returns for all open tax years (tax years ended September 30, 2010 through 2013) 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. However, based on experience, the Funds expect the risk of loss to be remote.

7. Risk 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 the 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.

126

Notes to Financial Statements (Unaudited) (Continued)

8. Risk Associated with Concentration

Certain Funds 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 on the Fund’s NAV and magnified effect on the total return.

9. 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.

10. 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. 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. There may be less governmental intervention in the securities markets in the near future. The negative impact on fixed income securities if interest rates increase as a result could negatively impact a Fund’s net asset value.

11. Fund Mergers

Ultra Short Duration Fixed Income Fund:

At a meeting held on February 21, 2013, the Board of Trustees of the Trust approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Short Duration Fixed Income Fund to the Touchstone Ultra Short Duration Fixed Income Fund. The tax-free merger took place on May 17, 2013.

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

127

Notes to Financial Statements (Unaudited) (Continued)

						After
	Before Reorganization					Reorganization
				Touchstone		Touchstone
	Touchstone			Ultra Short		Ultra Short
	Short Duration			Duration Fixed		Duration Fixed
	Fixed Income			Income		Income
	Fund			Fund		Fund
Class A
Shares		—			3,063,023		3,063,023
Net Assets	$	—		$	29,132,648	$	29,132,648
Net Asset Value	$	—		$	9.51	$	9.51
Class C
Shares		—			1,368,854		1,368,854
Net Assets	$	—		$	13,019,007	$	13,019,007
Net Asset Value	$	—		$	9.51	$	9.51
Class Y
Shares		5,701,547	(A)		24,121,448		29,822,995
Net Assets	$	54,224,138		$	229,404,605	$	283,628,743
Net Asset Value	$	9.51	(A)	$	9.51	$	9.51
Class Z
Shares		3,383,059	(B)		30,860,998		34,244,057
Net Assets	$	32,175,399		$	293,510,258	$	325,685,657
Net Asset Value	$	9.51	(B)	$	9.51	$	9.51
Institutional Class
Shares		—			1,594,529		1,594,529
Net Assets	$	—		$	15,157,886	$	15,157,886
Net Asset Value	$	—		$	9.51	$	9.51
Fund Total
Shares Outstanding		8,850,001			61,008,852		70,093,458
Net Assets	$	86,399,537		$	580,224,404	$	666,623,941
Unrealized Appreciation (Depreciation)	$	532,720		$	1,038,890	$	1,571,610

(A) Reflects a 1.0264:1 reverse stock split which occurred on the date of reorganization, May 17, 2013.

(B) Reflects a 1.0268:1 reverse stock split which occurred on the date of reorganization, May 17, 2013.

Assuming this reorganization had been completed on October 1, 2012, the Ultra Short Duration Fixed Income Fund results of operations for the year ended September 30, 2013 would have been as follows:

Net investment income	$	7,043,481
Net realized and unrealized losses on investments		(2,385,142	)
Net increase in asset from operations	$	4,658,339

Because the combined investment portfolios have been managed as a single portfolio since the reorganization was completed, it is not practical to separate the amounts of revenue and earnings to the Ultra Short Duration Fixed Income Fund that have been included in its statement of operations since the reorganization.

128

Notes to Financial Statements (Unaudited) (Continued)

Mid Cap Value Fund:

At a meeting held on November 21, 2013, the Board approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Mid Cap Value Opportunities Fund to the Touchstone Mid Cap Value Fund. The tax-free merger took place on March 21, 2014.

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

						After
	Before Reorganization					Reorganization
	Touchstone
	Mid Cap Value			Touchstone		Touchstone
	Opportunities			Mid Cap Value		Mid Cap Value
	Fund			Fund		Fund
Class A
Shares		913,005	(A)		299,971		1,212,976
Net Assets	$	14,967,633		$	4,917,666	$	19,885,299
Net Asset Value	$	16.39	(A)	$	16.39	$	16.39
Class C
Shares		75,102	(B)		59,134		134,236
Net Assets	$	1,220,480		$	960,982	$	2,181,462
Net Asset Value	$	16.25	(B)	$	16.25	$	16.25
Class Y
Shares		6,892,271	(C)		1,016,962		7,909,233
Net Assets	$	113,504,503		$	16,747,761	$	130,252,264
Net Asset Value	$	16.47	(C)	$	16.47	$	16.47
Institutional Class
Shares		1,714,774	(D)		6,203,932		7,918,706
Net Assets	$	28,350,276		$	102,569,628	$	130,919,904
Net Asset Value	$	16.53	(D)	$	16.53	$	16.53
Fund Total
Shares Outstanding		18,645,593			7,579,999		17,175,151
Net Assets	$	158,042,892		$	125,196,037	$	283,238,929
Unrealized Appreciation (Depreciation)	$	8,366,217		$	27,879,439	$	36,245,656

^(A) Reflects a 0.5137:1 stock split which occurred on the date of reorganization, March 21, 2014.

^(B) Reflects a 0.5117:1 stock split which occurred on the date of reorganization, March 21, 2014.

^(C) Reflects a 0.5152:1 stock split which occurred on the date of reorganization, March 21, 2014.

^(D) Reflects a 0.5128:1 stock split which occurred on the date of reorganization, March 21, 2014.

Assuming these reorganizations had been completed on October 1, 2013, the Mid Cap Value Fund results of operations for the six months ended March 31, 2014 would have been as follows:

Net investment income	$	1,194,995
Net realized and unrealized gains on investments		39,123,273
Net increase in asset from operations	$	40,318,268

Because the combined investment portfolios have been managed as single portfolios since the reorganizations were completed, it is not practical to separate the amounts of revenue and earnings to the Mid Cap Value Fund that have been included in their statements of operations since the reorganizations.

129

Notes to Financial Statements (Unaudited) (Continued) 

Small Cap Value Fund:

At a meeting held on November 21, 2013, the Board approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Touchstone Small Company Value Fund to the Touchstone Small Cap Value Fund. The tax-free merger took place on March 21, 2014.

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

						After
	Before Reorganization					Reorganization
	Touchstone			Touchstone		Touchstone
	Small Company			Small Cap Value		Small Cap Value
	Value Fund			Fund		Fund
Class A
Shares		100,358	(A)		1,405,942		1,506,300
Net Assets	$	2,549,878		$	35,722,061	$	38,271,939
Net Asset Value	$	25.41	(A)	$	25.41	$	25.41
Class C
Shares		59,836	(B)		30,879		90,715
Net Assets	$	1,506,072		$	777,242	$	2,283,314
Net Asset Value	$	25.17	(B)	$	25.17	$	25.17
Class Y
Shares		269,342	(C)		42,705		312,047
Net Assets	$	6,856,609		$	1,087,134	$	7,943,743
Net Asset Value	$	25.46	(C)	$	25.46	$	25.46
Institutional Class
Shares		233,106	(D)		1,112,220		1,345,326
Net Assets	$	5,932,909		$	28,307,741	$	34,240,650
Net Asset Value	$	25.45	(D)	$	25.45	$	25.45
Fund Total
Shares Outstanding		939,783			2,591,746		3,254,388
Net Assets	$	16,845,468		$	65,894,178	$	82,739,646
Unrealized Appreciation (Depreciation)	$	2,463,630		$	5,238,516	$	7,702,146

^(A) Reflects a 0.7013:1 stock split which occurred on the date of reorganization, March 21, 2014.

^(B) Reflects a 0.6497:1 stock split which occurred on the date of reorganization, March 21, 2014.

^(C) Reflects a 0.7129:1 stock split which occurred on the date of reorganization, March 21, 2014.

^(D) Reflects a 0.7133:1 stock split which occurred on the date of reorganization, March 21, 2014.

Assuming this reorganization had been completed on October 1, 2013, the Small Cap Value Fund results of operations for the six months ended March 31, 2014 would have been as follows:

Net investment income	$	674,853
Net realized and unrealized gains on investments		10,495,209
Net increase in asset from operations	$	11,170,062

Because the combined investment portfolios have been managed as a single portfolio since the reorganization was completed, it is not practical to separate the amounts of revenue and earnings to the Small Cap Value Fund that have been included in its statement of operations since the reorganization.

130

Notes to Financial Statements (Unaudited) (Continued)

12. Litigation

In January 2012, the Old Mutual Mid-Cap Fund (which reorganized into the TS&W Mid-Cap Value Fund in March 2009, the Touchstone Mid Cap Value Opportunities Fund in April 2012 and the Touchstone Mid Cap Value Fund in March 2014) was served with a summons and complaint in an action brought by Edward S. Weisfelner, as Trustee of the LB Creditor Trust, in the case captioned Weisfelner v. Fund 1(U.S. Bankr. S.D.N.Y. Adv. Pro. No. 10-4609) (the “Action”). The Action alleges that, under state law, all payments made to shareholders in the December 2007 leveraged buyout of Lyondell Chemical Company were made, by means of intentional and constructive fraudulent transfer and seeks to recover all those payments. The amount sought to be disgorged is $3,784,800, which is what the Fund received in payments in connection with the leveraged buyout. The Fund (along with thousands of other defendants) has filed a joinder to the currently pending motion to dismiss and awaits the court’s ruling on that motion. The path the litigation will follow (including whether it will proceed at all) depends on the outcome of that ruling; however, it is uncertain when that ruling will come down. At this nascent stage of the litigation, it is not possible to assess the likely outcome. The Fund is currently assessing the case and has not yet determined the potential effect, if any, on its net asset value.

13. Subsequent Events

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

131

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 www.touchstoneinvestments.com or on the Securities and Exchange Commission’s (the “Commission”)website www.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 www.sec.gov.

Quarterly Portfolio Disclosure

The Trust files a complete listing of portfolio holdings for each Fund as of the end of the first and third quarters of each fiscal year on Form N-Q. The complete listing (i) is available on the Commission’s website; (ii) may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; and (iii) will be made available to shareholders upon request by calling 1.800.543.0407. Information on the operation of the Public Reference Room may be obtained by calling 1.800.SEC.0330.

Schedule of Shareholder Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2013 through March 31, 2014).

Actual Expenses

The first line for each share class of a Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Six Months Ended March 31, 2014” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table below 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 of the table below is useful in comparing ongoing costs only, and 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.

132

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (Continued)

									Expenses
		Net Expense			Beginning		Ending		Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		March 31,			October 1,		March 31,		March 31,
		2014			2013		2014		2014*
Touchstone Arbitrage
Fund(A)
Class A	Actual		2.59	%		$1,000.00		$1,000.00		$12.91	**
Class A	Hypothetical		2.59	%		$1,000.00		$1,012.02		$12.99	**
Class C	Actual		3.39	%		$1,000.00		$997.00		$16.88	**
Class C	Hypothetical		3.39	%		$1,000.00		$1,008.03		$16.97	**
Class Y	Actual		2.30	%		$1,000.00		$1,001.00		$11.47	**
Class Y	Hypothetical		2.30	%		$1,000.00		$1,013.46		$11.55	**
Institutional Class	Actual		2.24	%		$1,000.00		$1,002.00		$11.18	**
Institutional Class	Hypothetical		2.24	%		$1,000.00		$1,013.76		$11.25	**
Touchstone Emerging Markets Equity Fund
Class A	Actual		1.69	%		$1,000.00		$972.50		$8.31
Class A	Hypothetical		1.69	%		$1,000.00		$1,016.50		$8.50
Class C	Actual		2.44	%		$1,000.00		$969.10		$11.98
Class C	Hypothetical		2.44	%		$1,000.00		$1,012.76		$12.24
Class Y	Actual		1.38	%		$1,000.00		$974.30		$6.79
Class Y	Hypothetical		1.38	%		$1,000.00		$1,018.05		$6.94
Institutional Class	Actual		1.29	%		$1,000.00		$975.70		$6.35
Institutional Class	Hypothetical		1.29	%		$1,000.00		$1,018.50		$6.49
Touchstone Global Real Estate Fund
Class A	Actual		1.39	%		$1,000.00		$1,058.80		$7.13
Class A	Hypothetical		1.39	%		$1,000.00		$1,018.00		$6.99
Class C	Actual		2.14	%		$1,000.00		$1,054.90		$10.96
Class C	Hypothetical		2.14	%		$1,000.00		$1,014.26		$10.75
Class Y	Actual		1.14	%		$1,000.00		$1,060.30		$5.86
Class Y	Hypothetical		1.14	%		$1,000.00		$1,019.25		$5.74
Institutional Class	Actual		0.99	%		$1,000.00		$1,060.50		$5.09
Institutional Class	Hypothetical		0.99	%		$1,000.00		$1,020.00		$4.99
Touchstone International Fixed Income Fund
Class A	Actual		1.09	%		$1,000.00		$1,026.30		$5.51
Class A	Hypothetical		1.09	%		$1,000.00		$1,019.50		$5.49
Class C	Actual		1.84	%		$1,000.00		$1,022.60		$9.28
Class C	Hypothetical		1.84	%		$1,000.00		$1,015.76		$9.25
Class Y	Actual		0.84	%		$1,000.00		$1,028.90		$4.25
Class Y	Hypothetical		0.84	%		$1,000.00		$1,020.74		$4.23
Institutional Class	Actual		0.69	%		$1,000.00		$1,029.30		$3.49
Institutional Class	Hypothetical		0.69	%		$1,000.00		$1,021.49		$3.48

133

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (Continued)

									Expenses
		Net Expense			Beginning		Ending		Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		March 31,			October 1,		March 31,		March 31,
		2014			2013		2014		2014*
Touchstone Merger Arbitrage Fund
Class A	Actual		2.54	%		$1,000.00		$1,001.30		$12.67	***
Class A	Hypothetical		2.54	%		$1,000.00		$1,012.27		$12.74	***
Class C	Actual		3.32	%		$1,000.00		$997.70		$16.54	***
Class C	Hypothetical		3.32	%		$1,000.00		$1,008.38		$16.62	***
Class Y	Actual		2.25	%		$1,000.00		$1,003.60		$11.24	***
Class Y	Hypothetical		2.25	%		$1,000.00		$1,013.71		$11.30	***
Institutional Class	Actual		2.23	%		$1,000.00		$1,002.30		$11.13	***
Institutional Class	Hypothetical		2.23	%		$1,000.00		$1,013.81		$11.20	***
Touchstone Mid Cap Fund
Class A	Actual		1.22	%		$1,000.00		$1,104.10		$6.40
Class A	Hypothetical		1.22	%		$1,000.00		$1,018.85		$6.14
Class C	Actual		1.97	%		$1,000.00		$1,100.20		$10.32
Class C	Hypothetical		1.97	%		$1,000.00		$1,015.11		$9.90
Class Y	Actual		0.96	%		$1,000.00		$1,105.40		$5.04
Class Y	Hypothetical		0.96	%		$1,000.00		$1,020.14		$4.84
Class Z	Actual		1.22	%		$1,000.00		$1,104.00		$6.40
Class Z	Hypothetical		1.22	%		$1,000.00		$1,018.85		$6.14
Institutional Class	Actual		0.90	%		$1,000.00		$1,105.70		$4.72
Institutional Class	Hypothetical		0.90	%		$1,000.00		$1,020.44		$4.53
Touchstone Mid Cap Value Fund
Class A	Actual		1.29	%		$1,000.00		$1,111.30		$6.79
Class A	Hypothetical		1.29	%		$1,000.00		$1,018.50		$6.49
Class C	Actual		2.04	%		$1,000.00		$1,106.60		$10.71
Class C	Hypothetical		2.04	%		$1,000.00		$1,014.76		$10.25
Class Y	Actual		1.04	%		$1,000.00		$1,112.40		$5.48
Class Y	Hypothetical		1.04	%		$1,000.00		$1,019.75		$5.24
Institutional Class	Actual		0.89	%		$1,000.00		$1,113.20		$4.69
Institutional Class	Hypothetical		0.89	%		$1,000.00		$1,020.49		$4.48
Touchstone Premium Yield Equity Fund
Class A	Actual		1.20	%		$1,000.00		$1,087.00		$6.24
Class A	Hypothetical		1.20	%		$1,000.00		$1,018.95		$6.04
Class C	Actual		1.95	%		$1,000.00		$1,084.40		$10.13
Class C	Hypothetical		1.95	%		$1,000.00		$1,015.21		$9.80
Class Y	Actual		0.95	%		$1,000.00		$1,089.60		$4.95
Class Y	Hypothetical		0.95	%		$1,000.00		$1,020.19		$4.78

134

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (Continued)

									Expenses
		Net Expense			Beginning		Ending		Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		March 31,			October 1,		March 31,		March 31,
		2014			2013		2014		2014*
Touchstone Sands Capital Select Growth Fund
Class A	Actual		1.36	%		$1,000.00		$1,099.10		$7.12
Class A	Hypothetical		1.36	%		$1,000.00		$1,018.15		$6.84
Class C	Actual		2.11	%		$1,000.00		$1,095.60		$11.02
Class C	Hypothetical		2.11	%		$1,000.00		$1,014.41		$10.60
Class Y	Actual		1.11	%		$1,000.00		$1,100.60		$5.81
Class Y	Hypothetical		1.11	%		$1,000.00		$1,019.40		$5.59
Class Z	Actual		1.36	%		$1,000.00		$1,099.10		$7.12
Class Z	Hypothetical		1.36	%		$1,000.00		$1,018.15		$6.84
Touchstone Small Cap Core Fund
Class A	Actual		1.35	%		$1,000.00		$1,110.70		$7.10
Class A	Hypothetical		1.35	%		$1,000.00		$1,018.20		$6.79
Class C	Actual		2.10	%		$1,000.00		$1,107.10		$11.03
Class C	Hypothetical		2.10	%		$1,000.00		$1,014.46		$10.55
Class Y	Actual		1.03	%		$1,000.00		$1,112.80		$5.43
Class Y	Hypothetical		1.03	%		$1,000.00		$1,019.80		$5.19
Institutional Class	Actual		0.98	%		$1,000.00		$1,113.30		$5.16
Institutional Class	Hypothetical		0.98	%		$1,000.00		$1,020.04		$4.94
Touchstone Small Cap Value Fund
Class A	Actual		1.43	%		$1,000.00		$1,112.40		$7.53
Class A	Hypothetical		1.43	%		$1,000.00		$1,017.80		$7.19
Class C	Actual		2.18	%		$1,000.00		$1,108.40		$11.46
Class C	Hypothetical		2.18	%		$1,000.00		$1,014.06		$10.95
Class Y	Actual		1.18	%		$1,000.00		$1,113.80		$6.22
Class Y	Hypothetical		1.18	%		$1,000.00		$1,019.05		$5.94
Institutional Class	Actual		1.03	%		$1,000.00		$1,114.30		$5.43
Institutional Class	Hypothetical		1.03	%		$1,000.00		$1,019.80		$5.19
Touchstone Total Return Bond Fund
Class A	Actual		0.90	%		$1,000.00		$1,021.50		$4.54
Class A	Hypothetical		0.90	%		$1,000.00		$1,020.44		$4.53
Class C	Actual		1.65	%		$1,000.00		$1,017.70		$8.30
Class C	Hypothetical		1.65	%		$1,000.00		$1,016.70		$8.30
Class Y	Actual		0.62	%		$1,000.00		$1,023.10		$3.13
Class Y	Hypothetical		0.62	%		$1,000.00		$1,021.84		$3.13
Institutional Class	Actual		0.50	%		$1,000.00		$1,023.70		$2.52
Institutional Class	Hypothetical		0.50	%		$1,000.00		$1,022.44		$2.52

135

Other Items (Unaudited) (Continued)

Schedule of Shareholder Expenses (Continued)

									Expenses
		Net Expense			Beginning		Ending		Paid During
		Ratio			Account		Account		the Six Months
		Annualized			Value		Value		Ended
		March 31,			October 1,		March 31,		March 31,
		2014			2013		2014		2014*
Touchstone Ultra Short Duration Fixed Income Fund
Class A	Actual		0.69	%		$1,000.00		$1,005.20		$3.45
Class A	Hypothetical		0.69	%		$1,000.00		$1,021.49		$3.48
Class C	Actual		1.19	%		$1,000.00		$1,003.70		$5.94
Class C	Hypothetical		1.19	%		$1,000.00		$1,019.00		$5.99
Class Y	Actual		0.44	%		$1,000.00		$1,007.50		$2.20
Class Y	Hypothetical		0.44	%		$1,000.00		$1,022.74		$2.22
Class Z	Actual		0.69	%		$1,000.00		$1,006.20		$3.45
Class Z	Hypothetical		0.69	%		$1,000.00		$1,021.49		$3.48
Institutional Class	Actual		0.39	%		$1,000.00		$1,007.70		$1.95
Institutional Class	Hypothetical		0.39	%		$1,000.00		$1,022.99		$1.97

^(A) Represents the period from commencement of operations (October 1, 2013) through March 31, 2014.

* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by [182/365] (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 $8.13, $12.10, $6.68 and $6.39, respectively and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $8.20, $12.19, $6.74 and $6.44, respectively.

*** 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 $7.88, $11.75, $6.44 and $6.34, respectively and your hypothetical cost of investment in Class A, Class C, Class Y and Institutional Class would be $7.95, $11.85, $6.49 and $6.39, respectively.

Advisory and Sub-Advisory Agreement Approval Disclosure

At a meeting held on November 21, 2013, the Board of Trustees (the “Board” or “Trustees”) of the Touchstone Funds Group Trust (the “Trust”), and by a separate vote, the Independent Trustees of the Trust, approved the continuance of the Investment Advisory Agreement between the Trust and the Advisor with respect to each Fund of the Trust, and the continuance of each Sub-Advisory Agreement between the Advisor and each Fund’s respective Sub-Advisor, with the exception of the Sub-Advisory Agreement relating to Touchstone Global Real Estate Fund, which was not up for renewal because it had been approved in February 2013.

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 the continuance of the Investment Advisory Agreement and each Sub-Advisory Agreement was in the best interests of the respective Funds and their shareholders. The information provided to the Board included: (1) industry data comparing advisory fees and expense ratios of comparable investment companies; (2) comparative performance information; (3) the Advisor’s and its affiliates’ revenues and costs of providing services to the Funds; and (4) information about the Advisor’s and Sub-Advisors’ personnel. Prior to voting, the Independent Trustees reviewed the proposed continuance of the Investment Advisory Agreement and the Sub-Advisory Agreements with management and with experienced independent legal counsel and received materials from such counsel discussing the legal standards for their consideration of the proposed continuation of the Investment Advisory Agreement and each Sub-Advisory Agreement. The IndependentTrustees also reviewed

136

Other Items (Unaudited) (Continued)

the proposed continuation of the Investment Advisory Agreement and each Sub-Advisory Agreement with independent legal counsel in private sessions at which no representatives of management were present.

In approving the Funds’ Investment Advisory Agreement, the Board considered various factors, among them: (1) the nature, extent and quality of services provided to the Funds, including the personnel providing such services; (2) the Advisor’s compensation and profitability; (3) a comparison of fees and performance with other advisers; (4) 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 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, including the Advisor’s role in coordinating the activities of the 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 each Sub-Advisor, including the Sub-Advisor that was an affiliate of the Advisor, and the Advisor’s timeliness in responding to performance issues. The Board considered the Advisor’s process for monitoring each of the Sub-Advisors, which includes 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 conducts regular on-site compliance visits with each Sub-Advisor, during which the Advisor examines 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 that the Sub-Advisor provides to the applicable Fund(s). The Board noted that the Advisor’s compliance monitoring processes also include quarterly reviews of compliance reports, and that any issues arising from such reports and the Advisor’s compliance visits to the Sub-Advisors are reported to the Board.

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

Advisor’s Compensation and Profitability. The Board took into consideration the financial condition and profitability of the Advisor and its affiliates (including the Sub-Advisor to one of the Funds) and the direct and indirect benefits derived by the Advisor and its affiliates from the Advisor’s relationship with the Funds. The information considered by the Board included operating profit margin information for the Advisor’s business as a whole. The Board noted that the Advisor waived a portion of advisory fees and administrative fees and/or reimbursed expenses in order to limit each Fund’s net operating expenses. The Board also noted that the Advisor pays the Sub-Advisors’ sub-advisory fees out of the advisory fees the Advisor receives from the Funds. The Board reviewed the profitability of the Advisor’s relationship with the Funds both before and after tax expenses, and also considered whether the Advisor has the financial wherewithal to continue to provide services to the Funds, noting the ongoing commitment of the Advisor’s parent company with respect to providing support and resources as needed.The Board considered that the Funds’ distributor, an affiliate of the Advisor, receives Rule 12b-1 distribution fees from the Funds and receives a portion of the sales charges on sales or redemptions of certain classes of shares. The Board also noted that the Advisor derives benefits to its reputation and other benefits from its association with the Funds.

137

Other Items (Unaudited) (Continued)

The Board recognized that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to each Fund and the entrepreneurial risk that it assumes as Advisor. Based upon their review, the Trustees concluded that the Advisor’s and its affiliates’ level of profitability, if any, from their relationship with each Fund was reasonable and not excessive.

Expenses and Performance. The Board compared the respective advisory fees and total expense ratios for each of the Funds with various comparative data, including the median and average advisory fees and total expense ratios of each Fund’s respective peer group. The Board also considered, among other data, the Funds’ respective performance results during the six-month, twelve-month and thirty-six-month periods ended June 30, 2013, as applicable, and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board also took into account current market conditions and their effect on the Funds’ performance.

The Board also considered the effect of each Fund’s growth and size on its performance and expenses. The Board noted that the Advisor had waived portions of the fees and/or reimbursed expenses of the Funds in order to reduce the Funds’ respective operating expenses to targeted levels. The Board noted that the sub-advisory fees under the Sub-Advisory Agreement with respect to each Fund were paid by the Advisor out of the advisory fees it receives from the Fund and considered the impact of such sub-advisory fees on the profitability of the Advisor. In reviewing the respective expense ratios and performance of each of the Funds, the Board also took into account the nature, extent and quality of the services provided to the Funds by the Advisor and its affiliates.

The Board also discussed with management certain factors as set forth in the conditions to the Funds’ exemptive order issued by the Securities and Exchange Commission relating to investments by the non-money market Funds in the Touchstone Institutional Money Market Fund. The Board considered the nature and extent of the services provided by the Advisor and the Sub-Advisor to each Fund, as well as a discussion by management regarding the amount of the Advisory fees paid by the Funds and Sub-Advisory fees paid by the Advisor in light of the level of Fund assets invested in the Touchstone Institutional Money Market Fund. Based on these factors, the Board concluded that the advisory fee and the sub-advisory fee associated with the management of each non-money market Fund were based on services that were in addition to, rather than duplicative of, services provided under the Investment Advisory and Sub-Advisory Agreements with respect to the Touchstone Institutional Money Market Fund.

The Board considered, among other data, the specific factors and related conclusions set forth below with respect to each Fund:

Touchstone Emerging Markets Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and at the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2013 and the Fund’s performance was in the 4th quintile for the thirty-six-month period ended June 30, 2013. The Board noted management’s discussion of the Fund’s underperformance and management’s continued monitoring of the Fund’s performance. Based upon their review, theTrustees concluded that the Fund’s performance was being addressed and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Global Real Estate Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 4th quintile of the Fund’s peer group for the six-month period ended June 30, 2013, the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2013

138

Other Items (Unaudited) (Continued)

and the Fund’s performance was in the 2nd quintile for the thirty-six-month period ended June 30, 2013. The Board noted that a new sub-advisor had begun managing the Fund in May 2013 using new investment strategies. Based upon their review, the Trustees concluded that the Fund’s performance had been addressed and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone International Fixed Income Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six- and thirty-six-month periods ended June 30, 2013, and the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2013. Based upon their review, the Trustees concluded that the Fund’s performance was satisfactory in relation to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Merger Arbitrage Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median and at the median, respectively, of its peer group. The Fund’s performance was in the 1st quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2013. Based upon their review, theTrustees concluded that the Fund’s performance was satisfactory in relation to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Mid Cap Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 1st quintile of the Fund’s peer group for the six-, twelve- and thirty-six-month periods ended June 30, 2013. Based upon their review, theTrustees concluded that the Fund’s performance was satisfactory in relation to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Mid Cap Value Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and at the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 3rd quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2013, and the Fund’s performance was in the 4th quintile for the thirty-six-month period ended June 30, 2013. Based upon their review, the Trustees concluded that the Fund’s overall performance was satisfactory in relation to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Premium Yield Equity Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2013 and the Fund’s performance was in the 3rd quintile for the thirty-six-month period ended June 30, 2013. The Board noted management’s discussion of the Fund’s recent underperformance and management’s continued monitoring of the Fund’s performance.

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Based upon their review, the Trustees concluded that the Fund’s performance was being addressed, and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Sands Capital Select Growth Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 5th quintile of the Fund’s peer group for the six-month period ended June 30, 2013, the Fund’s performance was in the 4th quintile for the twelve-month period ended June 30, 2013 and the Fund’s performance was in the 1st quintile for the thirty-six-month period ended June 30, 2013. The Board noted management’s explanation for the Fund’s performance, including the recent improvement in performance, and management’s continued monitoring of the Fund’s performance. Based upon their review, the Trustees concluded that the Fund’s performance was being addressed and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Small Cap Core Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median and below the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six- and twelve-month periods ended June 30, 2013, and the Fund’s performance was in the 1st quintile for the thirty-six-month period ended June 30, 2013. Based upon their review, the Trustees concluded that the Fund’s performance was satisfactory in relation to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Small Cap Value Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were above the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing operating expenses of the Fund. The Fund’s performance was in the 4th quintile of the Fund’s peer group for the six-month period ended June 30, 2013, the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2013 and the Fund’s performance was in the 1st quintile for the thirty-six-month period ended June 30, 2013. The Board noted management’s discussion of the Fund’s recent performance. Based upon their review, the Trustees concluded that the Fund’s overall performance was being addressed and that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Total Return Bond Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were at the median and above the median, respectively, of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing a portion of the Fund’s operating expenses. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six- and thirty-six-month periods ended June 30, 2013, and the Fund’s performance was in the 3rd quintile for the twelve-month period ended June 30, 2013. Based upon their review, the Trustees concluded that the Fund’s performance was satisfactory in relation to the performance of funds with similar investment objectives and relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Touchstone Ultra Short Duration Fixed Income Fund. The Fund’s advisory fee and total expense ratio (net of applicable expense waivers and reimbursements) were below the median of its peer group. The Board noted that the Advisor was currently waiving a portion of the Fund’s fees and/or reimbursing operating expenses of the Fund. The Fund’s performance was in the 2nd quintile of the Fund’s peer group for the six-, twelve- and thirty-six-month periods ended June 30, 2013. Based upon their review, the Trustees concluded that the Fund’s performance was satisfactory in relation to the performance of funds with similar investment objectives and

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relevant indices, and also found that the advisory fee was reasonable in light of the services received by the Fund and the other factors considered.

Economies of Scale. The Board considered the effect of each Fund’s current size and potential growth on its performance and expenses. The Board took into account management’s discussion of the Funds’ advisory fee structure.The Board considered the effective advisory fees under the Investment Advisory Agreement as a percentage of assets at different asset levels and possible economies of scale that might be realized if the assets of each Fund increase. The Board noted that the advisory fee schedules for some of the Funds contain breakpoints that would reduce the respective advisory fee rate on assets above specified levels as the respective Fund’s assets increased and considered the necessity of adding breakpoints with respect to the Funds that did not currently have such breakpoints in their advisory fee schedules. The Board determined that adding breakpoints at specified levels to the advisory fee schedule of each Fund that currently did not have such breakpoints was not appropriate at that time. The Board also noted that if a Fund’s assets increase over time, the Fund might realize other economies of scale if assets increase proportionally more than certain other expenses. The Board also considered the fact that, under the Investment Advisory Agreement, the advisory fee payable to the Advisor by a Fund was reduced by the total sub-advisory fee paid by the Advisor to the Fund’s Sub-Advisor.

Conclusion. In considering the renewal of the Funds’ 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. TheTrustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately with respect to each Fund. The Board reached the following conclusions regarding the Funds’ Investment Advisory Agreement with the Advisor, 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; (c) the overall performance of each Fund is satisfactory in relation to the performance of funds with similar investment objectives and relevant indices or, as discussed above, has been or is being addressed; and (d) each Fund’s advisory fee is reasonable in light of the services received by the Fund from the Advisor and other factors considered. Based on their conclusions, the Trustees determined with respect to each Fund that continuation of the Investment Advisory Agreement was in the best interests of the Fund and its shareholders.

In approving the Funds’ respective Sub-Advisory Agreements, the Board considered various factors with respect to each Fund and the applicable Sub-Advisory Agreement, among them: (1) the nature, extent and quality of services provided to the Fund, including the personnel providing such services; (2) the Sub-Advisor’s compensation; (3) a comparison of the sub-advisory fee and performance with other advisers; 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. The Board considered information provided by the Advisor regarding the services provided by each Sub-Advisor, including information presented periodically throughout the previous year. The Board noted the affiliation of one of the Sub-Advisors with the Advisor, noting any potential conflicts of interest. The Board also noted that, on a periodic basis, the Board meets with portfolio managers of the Sub-Advisors to discuss their respective performance and investment processes and strategies. The Board considered each 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 Funds. The Board also noted each Sub-Advisor’s brokerage practices.

Sub-Advisor’s Compensation, Profitability and Economies of Scale. The Board also took into consideration the financial condition of each Sub-Advisor and any indirect benefits derived by each Sub-Advisor and its affiliates from the Sub-Advisor’s relationship with the Funds. In considering the profitability to each Sub-Advisor of its relationship with the Funds, the Board noted the undertakings of the Advisor to maintain expense limitations

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for the Funds and also noted that the sub-advisory fees under the Sub-Advisory Agreements were paid by the Advisor out of the advisory fees that it receives under the Investment Advisory Agreement and in addition, with respect to the unaffiliated Sub-Advisors, are negotiated at arm’s length. As a consequence, the profitability to each Sub-Advisor of its relationship with a Fund was not a substantial factor in the Board’s deliberations. For similar reasons, the Board did not consider the potential economies of scale in each Sub-Advisor’s management of the applicable Fund to be a substantial factor in its consideration, although the Board noted that the sub-advisory fee schedule for some of the Funds contained breakpoints that would reduce the sub-advisory fee rate on assets above specified levels as the applicable Fund’s assets increased.

Sub-Advisory Fees and Fund Performance. The Board considered that each Fund pays an advisory fee to the Advisor and that the Advisor pays the sub-advisory fee to the Sub-Advisor out of the advisory fee it receives from the respective Fund. The Board also compared the sub-advisory fees paid by the Advisor to fees charged by the Sub-Advisor to manage comparable institutional separate accounts. The Board considered the amount retained by the Advisor and the sub-advisory fee paid to each Sub-Advisor with respect to the various services provided by the Advisor and the Sub-Advisor. The Board also noted that the Advisor negotiated the sub-advisory fee with each of the unaffiliated Sub-Advisors at arm’s length. The Board reviewed the sub-advisory fee for each Fund in relation to various comparative data, including the median and average sub-advisory fees of each Fund’s peer group, and considered the following information:

Touchstone Emerging Markets Equity Fund. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone International Fixed Income Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Merger Arbitrage Fund. The Trustees considered the sub-advisory fee in view of the sub-advisory fees paid with respect to other Touchstone Funds. Based upon that review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received from the Sub-Advisor and the other factors considered.

Touchstone Mid Cap Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Mid Cap Value Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Premium Yield Equity Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Sands Capital Select Growth Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Small Cap Core Fund. The Fund’s sub-advisory fee was above the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

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Touchstone Small Cap Value Fund. The Fund’s sub-advisory fee was at the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

Touchstone Total Return Bond. The Fund’s sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and other factors considered.

Touchstone Ultra Short Duration Fixed Income Fund. The Fund’s Sub-advisory fee was below the median of its peer group. Based upon their review, the Trustees concluded that the Fund’s sub-advisory fee was reasonable in light of the services received by the Fund from the Sub-Advisor and the other factors considered.

As noted above, the Board considered each Fund’s performance during the six-month, twelve-month and thirty-six-month periods ended June 30, 2013, as applicable, as compared to each Fund’s peer group and noted that the Board reviews on a quarterly basis detailed information about each Fund’s performance results, portfolio composition and investment strategies. The Board noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of each Sub-Advisor. The Board was mindful of the Advisor’s focus on each Sub-Advisor’s performance and the Advisor’s ways of addressing underperformance.

Conclusion. In considering the renewal of the Sub-Advisory Agreement with respect to each Fund, 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 Sub-Advisory Agreement, among others: (a) the Sub-Advisor is qualified to manage each Fund’s assets in accordance with the Fund’s investment objectives and policies; (b) the Sub-Advisor maintains an appropriate compliance program; (c) the performance of each Fund is satisfactory relative to the performance of funds with similar investment objectives and relevant indices or, as discussed above, is being addressed; (d) each Fund’s advisory fees are reasonable relative to those of similar funds and the services to be provided by the Advisor and the Sub-Advisor; and (e) the Sub-Advisor’s investment strategies are appropriate for pursuing the investment objectives of each Fund. Based on its conclusions, the Board determined that approval of the Sub-Advisory Agreement with respect to each Fund was in the best interests of the Fund and its shareholders.

At a meeting held on August 21-22, 2013, the Board of Trustees (the “Board” or “Trustees”) of the Touchstone Funds Group 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 the Advisor adding the Touchstone Arbitrage Fund (the “Fund”) and also initially approved the Sub-Advisory Agreement with respect to the Fund between the Advisor and Longfellow Investment Management Co. (the “Sub-Advisor”).

In determining whether to approve the amendment to the Investment Advisory Agreement and the Sub-Advisory Agreement, 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 Board also took into account information provided to the Board in its meetings throughout the year with respect to the services provided by the Advisor and the Sub-Advisor to another Touchstone Fund managed by the Sub-Advisor on which the Fund would be modeled (the “Model Touchstone Fund”). In addition, the Board took into consideration certain information and materials that the Board had received and considered in connection with its approval of the renewal in November 2012 of the Investment Advisory and Sub-Advisory Agreements with respect to the Model Touchstone Fund. Those approvals, on which the Board voted at its meeting held in person on November 15, 2012, followed a lengthy process during which the Board considered a variety of factors. The information considered by the Board 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 Model Touchstone Fund

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managed by the Sub-Advisor; (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 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’s 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, including the Sub-Advisor, and the Advisor’s timeliness in responding to any performance issues. The Board considered the Advisor’s process for monitoring the Sub-Advisor, which includes and 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 conducts regular on-site compliance visits with the Sub-Advisor, during which the Advisor examines 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 include quarterly reviews of compliance reports, and that any issues arising from such reports and the Advisor’s compliance visits to the Sub-Advisor are 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 a period 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

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commitment of the Advisor’s parent company with respect to providing support and resources as needed. The Board also considered that the Fund’s prospective distributor, an affiliate of the Advisor, would receive Rule 12b-1 distribution fees from the Fund and would receive a portion of the sales charges on sales or redemptions of certain classes of shares. 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 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 below the Fund’s expense group median and the Fund’s total expenses, net of fee waivers and/or reimbursements, was below the Fund’s expense group median. The Board took into consideration the performance of the Model Touchstone Fund. The Board noted that the portfolio management team that currently manages the Model Touchstone Fund is expected to manage the Fund as well. The Board also noted that the Board reviews on a quarterly basis detailed information about the Model Touchstone Fund’s performance results, portfolio composition and investment strategies. In addition, the Board took into consideration certain differences between how the Model Touchstone Fund is managed and how the Fund will be managed as well as the impact these differences are expected to have on the Fund’s performance.

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. In reviewing the proposed expense ratios and the performance of the Model Touchstone Fund, the Board also took into account the nature, extent and quality of the services to be provided to the Fund by the Advisor and its affiliates. Based upon their review, the Trustees 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. The Board noted that the proposed advisory fee schedule contains breakpoints that would reduce the applicable advisory fee rate on assets above specified levels as the Fund’s assets increased. The Board also noted that if the Fund’s assets increase over time, the Fund might realize other 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. TheTrustees 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; (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

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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 Model Touchstone Fund; 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 noted that, on a periodic basis, the Board meets with the portfolio managers of the Sub-Advisor to discuss their performance and investment processes and strategies with respect to the Model Touchstone Fund. 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 noted its familiarity with the Sub-Advisor, owing to the Sub-Advisor’s management of the Model Touchstone Fund. The Board also considered the Sub-Advisor’s regulatory and compliance history. The Board noted that the Advisor’s compliance monitoring includes quarterly reviews of compliance reports and annual compliance reviews of the Sub-Advisor and that compliance issues, if any, are reported to the Board. The Board also noted the Sub-Advisor’s brokerage practices.

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, although the Board noted that the proposed sub-advisory fee schedule contains breakpoints that would reduce the applicable sub-advisory fee rate on Fund assets above specified levels as the Fund’s assets increased.

Sub-Advisory Fee 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 also compared the Sub-Advisor’s proposed sub-advisory fee to the sub-advisory fees paid to sub-advisors for managing comparable funds, noting that the proposed sub-advisory fee was at the Fund’s expense group median. 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 long-term performance record in managing the Model Touchstone Fund, certain differences between how the Sub-Advisor manages the Model Touchstone Fund and how it will manage the Fund, as well as the impact these differences are expected to have on the Fund’s performance. The Board also took into account that the portfolio management team that currently manages the ModelTouchstone Fund is expected to manage the Fund as well. The Board also noted the Advisor’s expertise and resources in monitoring the performance, investment style and risk-adjusted performance of the Sub-Advisor with respect to the ModelTouchstone Fund. The Board was mindful of the Advisor’s focus on the performance of sub-advisors, including the Sub-Advisor, 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.

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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.

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• 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.

151

 

 

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-56-TFGT-SAR-1403

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 Funds Group Trust

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

Date 06/03/14

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 06/03/14

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

Date 06/03/14

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